Agenda packet — Healdsburg City Council, March 3, 2025 (part 2 of 2)

engagement and feedback, and transparency and oversight regarding the acquisition and use of the specified military equipment in the City of Healdsburg.

3. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

4. Prior military equipment use complied with the military equipment use policy that was in effect at the time of the use.

Section 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

PASSED, APPROVED, and ADOPTED by the City Council of the City of Healdsburg at a regular meeting thereof this 3rd day of March 2025 by the following vote:

AYES: Council members: ( )
NOES: Council members: ( )
ABSENT: Council members: ( )
ABSTAINING: Council members: ( )
SO ORDERED: ATTEST:
_________________________________ ____________________________________ Evelyn L. Mitchell, Mayor Raina Allan, City Clerk

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Packet Pg. 109 Attachment: Resolution (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Review and Appro)

MILITARY EQUIPMENT USE
AB 481
2024 Annual Report
Matt Jenkins, Chief of Police

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Packet Pg. 110 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Table of Contents
Annual Reporting Requirements...........................................................................................2 Summary of Uses..........................................................................................................................3 Unmanned, remotely piloted, powered aerial or ground vehicles......................................................3 “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray)...............................................................................3 The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons......................3 Complaints or Concerns Received........................................................................................4 Unmanned, remotely piloted, powered aerial or ground vehicles......................................................4 “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray)...............................................................................4 The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons......................4 Internal Audits of Equipment..................................................................................................5 Unmanned, remotely piloted, powered aerial or ground vehicles......................................................5 “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray)...............................................................................5 The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons......................5 Annual Costs...................................................................................................................................6 Unmanned, remotely piloted, powered aerial or ground vehicles......................................................6 “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray)...............................................................................6 The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons......................6 Inventory of Equipment Possessed......................................................................................7 Additional Inventory Sought for 2025 ...............................................................................10

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Packet Pg. 111 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Annual Reporting Requirements
AB481 requires on an annual basis the police department to seek and obtain City Council approval for future acquisition and funding of new military equipment and provide City Council and the public a report outlining how the military equipment was used, to ensure the police department is adhering to our policy and the city ordinance.

Healdsburg Municipal Code 2.60.050 (Reports on they use of Military Equipment) requires the police department submit to City Council an annual military equipment report for each type of military equipment approved by the City Council within one year of approval, and annually thereafter for as long as the military equipment is available for use. The police department shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use.

This annual military equipment report includes the all of the following required information for the immediately preceding calendar year for each type of military equipment:

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

5. The quantity possessed for each type of military equipment.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the police department will hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment.

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Packet Pg. 112 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Summary of Uses
Unmanned, remotely piloted, powered aerial or ground vehicles How equipment was used: Police Department sUAS’s (drones) were used for a total of 12 flights/missions in 2024. Each flight/mission was conducted within department approved policy for the use of sUAS’s.

Purpose of use:

Training – 9
Law Enforcement Search (Suspect) – 1
Law Enforcement Tactical Support – 2
“Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray) How equipment was used:

There were no uses of this category of equipment.

The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons How equipment was used:

There were no uses of this category of equipment.

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Packet Pg. 113 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Complaints or Concerns Received
Unmanned, remotely piloted, powered aerial or ground vehicles Complaint/Concern:

No complaints or concerns were received.
“Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray) Complaint/Concern:

No complaints or concerns were received.

The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons Complaint/Concern:

No complaints or concerns were received.

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Packet Pg. 114 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Internal Audits of Equipment
Unmanned, remotely piloted, powered aerial or ground vehicles Results of any internal audits:

A review of flight data was conducted and found that all flights were conducted within department policy and FAA regulations.

Information about violations of the military equipment use policy:

N/A
Actions taken in response:

N/A
“Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray) Results of any internal audits:

There were no uses of this category of equipment.

Information about violations of the military equipment use policy:

N/A
Actions taken in response:

N/A
The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons Results of any internal audits:

There were no uses of this category of equipment.

Information about violations of the military equipment use policy:

N/A
Actions taken in response:

N/A

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Packet Pg. 115 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Annual Costs
Unmanned, remotely piloted, powered aerial or ground vehicles Acquisition Personnel Training Transportation Maintenance Storage Upgrade Source
funds Total Costs
$20,271.08 $1,500 $500 $0.00 $0.00 $0.00 $0.00
Approved
Budget $22,271.08
“Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray) Acquisition Personnel Training Transportation Maintenance Storage Upgrade Source
funds
Total
Costs
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Approved
Budget $0.00
The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons Acquisition Personnel Training Transportation Maintenance Storage Upgrade Source
funds
Total
Costs
$2,006.87 $5,000 $1,000 $0.00 $0.00 $0.00 $0.00
Approved
Budget $7,706.87

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Packet Pg. 116 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Inventory of Equipment Possessed
Quantities as of Dec 31, 2024
Type of Equipment Quantity
Unmanned, remotely piloted, powered aerial or ground vehicles i. SKYDIO X10, Cost: $23,320.15. A compact, foldable drone, that integrates a Teledyne FLIR Boson+ sensor, delivering high quality thermal imaging. Capable of resolutions of 640x512 and offering increased sensitivity down to <=30mK, X10 delivers more accurate radiometric readings.
1 ii. PARROT ANAFI, cost: $700. A compact, foldable, light and easily deployable sUAS. Stabilized on 5 axes (2 mechanical axes and 3 electronic axes), the Sony optical sensor built into ANAFI allows clear images to be taken, despite the vibrations associated with drone flights.

The x3 zoom and the 180° tilt of the camera provide a detailed view of the observed target.

This item is no longer in service. A second item of this types was lost in the Russian River following a malfunction during flight in 2023 and was unable to be recovered, therefore it is no longer in our possession. 1 iii. PARROT ANAFI USA, cost: $7,000. To balance the resolutions of the thermal image and visible image, and therefore benefit from information not visible in thermal, the displayed image is a fusion of the information from the two cameras. Stabilized on three axes, the optical unit of ANAFI Thermal combines an infra-red sensor to the electro-optics, making it possible to identify temperatures between -10° and +400°. Thanks to the FLIR Lepton 3.5 module, it is possible to set the absolute temperature of each pixel.

This item is no longer in service.
1 “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls” (excluding standard, service-issued handheld pepper spray) i. COMBINED TACTICAL SYSTEMS, 40MM FRANGIBLE IMPACT OC
POWDER 4556, cost: $19.09. A less lethal 40mm lightweight foam projectile firedfrom a single 40mm launcher with a rifled barrel at 300 FPS.

The 40mm direct fire, dispersed OC irritant round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and asfar as 150 feet from the target. 19 6.C.b
Packet Pg. 117 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and ii. COMBINED TACTICAL SYSTEMS, 37MM OC MUZZLE BLAST
INDOOR AND OUTDOOR 3440, cost: $20.72. A less lethal 37mm lightweight OC powder projectile fired from a single 37mm grenade launcher with a rifled barrel at 240-260 FPS. The 40mm Sponge Round provides accurate and effective performance when fired from the approved distance of not less than ten (10) feet and as far as 50 feet from the target.
20 The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons
i. PENN ARMS, 40MM SINGLE MULTI LAUNCHER, cost: $2,630. The 40mm Single Launcher is a tactical single-shot launcher that features a fixed stock and an Integrated Front Grip (IFG). It will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length. It will launch a 40mm less lethal round up to 131 feet and is authorized to be used by officers trained in its use.
2 ii. DEFENSE TECHNOLOGY, 37MM SINGLE LAUNCHER, cost: $2,630.

The 37mm Single Launcher is a tactical single shot launcher that features a fixed stock and an Integrated Front Grip (IFG). It will fire standard 37mm less lethal ammunition, up to 8 inches in cartridge length. 1 iii. MOSSBERG 590 LESS LETHAL SHOTGUN, cost: $412. The Mossberg 590 Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers anda suspect reducing the immediacy of the threat which is a principle of de-escalation. 6 iv. COMBINED TACTICAL SYSTEMS, 40MM SPONGE 4457, cost: $21.00.

A less lethal 40mm lightweight foam projectile fired from a single 40mm launcher with a rifled barrel at 240-250 FPS. The 40mm Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 100 feet from the target.
19 v. COMBINED TACTICAL SYSTEMS, 40MM .60 STING BALL 4558, cost:
$25.84. A less lethal 40mm lightweight foam projectile fired from a single 40mm launcher with a rifled barrel at 240-260 FPS. The 40mm Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target.
20 vi. COMBINED TACTICAL SYSTEMS, 3.7MM/40MM STING BALL 8” LONG 3559, cost: $17.46. A less lethal 37mm multi-projectile impact munition fired from a single 37mm launcher with a rifled barrel at 280-325 FPS.

The 37mm sting pellet round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and 20 6.C.b
Packet Pg. 118 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and as far as 50 feet from the target.
vii. COMBINED TACTICAL SYSTEMS, 37MM/40MM FOAM BATON 8” LONG 3555, cost: $21.38. A less lethal 37mm lightweight foam projectile fired from a single 37mm/40mm launcher with a rifled barrel at 240-260 FPS. The 40mm Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 50 feet from the target.
19 viii. Defense Technology 40 mm. Direct Impact Reloadable Training Kit, cost: $1,546.71. The Direct Impact and eXact iMpact Reloadable Training Kit allows realistic training to be conducted at a fraction of the cost of using operational rounds. These reusable projectiles can be reloaded by hand in the field in less than 10 seconds without the need for presses or other reloading equipment.
1 ix. 12-GAUGE SUPER-SOCK BEANBAG ROUND, cost: $5. A less lethal

2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and fore grip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. The maximum effective range of this munition is up to 75 feet from the target. The Model2581 Super-Sock is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to "unfold" or "stabilize." TheSuperSock is an aerodynamic projectile. However, accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator.The Super-Sock is very accurate. However, effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts.
295 Duty
134
Training

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Packet Pg. 119 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and Additional Inventory Sought for 2025
Type of Equipment
Quantity
Sought
The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons
There is no anticipated purchase of additional equipment in this category in 2025.

Unmanned, remotely piloted, powered aerial or ground vehicles i. TBD, cost: TBD
Staff is currently evaluating options that are available and will selected the appropriate sUAS in FY 24/25. The number as well as make/model will be dependent on available funds in the budget.

Up to 4

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Packet Pg. 120 Attachment: 2024 Annual Report - AB 481 (4757 : Review and Renew City of Healdsburg Military Equipment Use Ordinance and Policy and 3/12/23, 7:49 PM Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE https://www.codepublishing.com/CA/Healdsburg/#!/Healdsburg02/Healdsburg0260.html#2.60 1/7 Chapter 2.60

MILITARY EQUIPMENT USE ORDINANCE
Sections:

2.60.010 Name of chapter.

2.60.020 Definitions.

2.60.030 Military equipment use policy requirement.

2.60.040 Use in exigent circumstances.

2.60.050 Reports on the use of military equipment.

2.60.060 Severability.

2.60.010 Name of chapter.

This chapter shall be known as the military equipment use ordinance. (Ord. 1215 § 3 (Exh. A), 2022.)

2.60.020 Definitions.

A. “Military equipment” includes all of the following (per Cal. Gov. Code § 7070):

1. Unmanned, remotely piloted, powered aerial or ground vehicles.

2. Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this subsection.

3. High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subsection.

4. Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion.

5. Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.

6. Weaponized aircraft, vessels, or vehicles of any kind.

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Packet Pg. 121 Attachment: Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE (4757 : Review and Renew City of Healdsburg Military Equipment Use 3/12/23, 7:49 PM Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE https://www.codepublishing.com/CA/Healdsburg/#!/Healdsburg02/Healdsburg0260.html#2.60 2/7

7. Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this subsection.

8. Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this subsection.

9. Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subsection.

10. Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.

11. Any firearm or firearm accessory that is designed to launch explosive projectiles.

12. “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.

13. Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD).

14. The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons.

15. Any other equipment as determined by a governing body or a state agency to require additional oversight.

16. Notwithstanding subsections (A)(1) through (15) of this section, “military equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency.

B. “City” means any department, agency, bureau, and/or subordinate division of the City of Healdsburg.

C. “Police department” means any division, section, bureau, employee, volunteer and/or contractor of the Healdsburg police department.

D. “City Council” means the governing body that is the Healdsburg City Council.

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Packet Pg. 122 Attachment: Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE (4757 : Review and Renew City of Healdsburg Military Equipment Use 3/12/23, 7:49 PM Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE https://www.codepublishing.com/CA/Healdsburg/#!/Healdsburg02/Healdsburg0260.html#2.60 3/7 E. “Military equipment use policy” means a publicly released, written document that includes, at a minimum, all of the following:

1. A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment.

2. The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment.

3. The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.

4. The legal and procedural rules that govern each authorized use.

5. The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.

6. The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy.

7. For a law enforcement agency, the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement agency will ensure that each complaint, concern, or question receives a response in a timely manner.

F. “Exigent circumstances” means a law enforcement agency’s good faith belief that an emergency involving the danger of, or imminent threat of, death or serious physical injury to any person is occurring, has occurred, or is about to occur.

G. “State agency” means the law enforcement division of every state office, officer, department, division, bureau, board, and commission or other state body or agency, except those agencies provided for in Article IV (except Section 20 thereof) or Article VI of the California Constitution.

H. “Type” means each item that shares the same manufacturer model number. (Ord. 1215 § 3 (Exh.

A), 2022.)

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Packet Pg. 123 Attachment: Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE (4757 : Review and Renew City of Healdsburg Military Equipment Use 3/12/23, 7:49 PM Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE https://www.codepublishing.com/CA/Healdsburg/#!/Healdsburg02/Healdsburg0260.html#2.60 4/7

2.60.030 Military equipment use policy requirement.

A. The Healdsburg police department shall obtain approval of the City Council, by a resolution adopting a military equipment use policy (MEUP) at a regular meeting of the City Council held pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code) prior to engaging in any of the following:

1. Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.

2. Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.

3. Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.

4. Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the City of Healdsburg.

5. Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter.

6. Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment.

7. Acquiring military equipment through any means not provided by this section.

B. No later than May 1, 2022, if seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, the Healdsburg police department shall commence a City Council approval process in accordance with this section. If the City Council does not approve the continuing use of military equipment, including by adoption pursuant to a military equipment use policy submitted pursuant to this chapter, within 180 days of submission of the proposed military equipment use policy to City Council, the Healdsburg police department shall cease its use of the military equipment until it receives the approval of City Council in accordance with this chapter.

C. In seeking the approval of City Council, the Healdsburg police department shall submit a proposed military equipment use policy to the City Council and make those documents available on

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Packet Pg. 124 Attachment: Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE (4757 : Review and Renew City of Healdsburg Military Equipment Use 3/12/23, 7:49 PM Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE https://www.codepublishing.com/CA/Healdsburg/#!/Healdsburg02/Healdsburg0260.html#2.60 5/7 the police department’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue.

D. The City Council shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following:

1. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.

2. The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.

3. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

4. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

E. In order to facilitate public participation, any proposed or final military equipment use policy shall be made publicly available on the internet website of the police department for as long as the military equipment is available for use.

F. The City Council shall review this chapter at least annually and vote on whether to renew it at a regular meeting held pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code). (Ord. 1215 § 3 (Exh. A), 2022.)

2.60.040 Use in exigent circumstances.

A. Notwithstanding the provisions of this chapter, the police department may acquire, borrow and/or use military equipment in exigent circumstances without following the requirements of this chapter.

B. If the police department acquires, borrows, and/or uses military equipment in exigent circumstances, in accordance with this section, it must take all of the following actions:

1. Provide written notice of that acquisition or use to the City Council within 30 days following the commencement of such exigent circumstance, unless such information is confidential or privileged under local, state or federal law.

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Packet Pg. 125 Attachment: Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE (4757 : Review and Renew City of Healdsburg Military Equipment Use 3/12/23, 7:49 PM Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE https://www.codepublishing.com/CA/Healdsburg/#!/Healdsburg02/Healdsburg0260.html#2.60 6/7

2. If it is anticipated that the use will continue beyond the exigent circumstance, submit a proposed amended military equipment use policy to the City Council within 90 days following the borrowing, acquisition and/or use, and receive approval, as applicable, from the City Council.

3. Include the military equipment in the police department’s next annual military equipment report. (Ord. 1215 § 3 (Exh. A), 2022.)

2.60.050 Reports on the use of military equipment.

A. The police department shall submit to City Council an annual military equipment report for each type of military equipment approved by the City Council within one year of approval, and annually thereafter for as long as the military equipment is available for use.

B. The police department shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use.

C. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

5. The quantity possessed for each type of military equipment.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

D. Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the police department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions

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Packet Pg. 126 Attachment: Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE (4757 : Review and Renew City of Healdsburg Military Equipment Use 3/12/23, 7:49 PM Chapter 2.60 MILITARY EQUIPMENT USE ORDINANCE https://www.codepublishing.com/CA/Healdsburg/#!/Healdsburg02/Healdsburg0260.html#2.60 7/7 regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment.

E. The City Council shall determine, based on the annual military equipment report submitted pursuant to this section, whether each type of military equipment identified in that report has complied with the standards for approval set forth in this chapter and the military equipment use policy. If the City Council determines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval, the City Council shall either disapprove a renewal of the authorization for that type of military equipment or require modifications to the military equipment use policy in a manner that will resolve the lack of compliance. (Ord. 1215 § 3 (Exh. A), 2022.)

2.60.060 Severability.

A. If any section, subsection, sentence, clause, phrase, or word of this chapter, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this chapter.

B. The City Council hereby declares that it would have passed this chapter and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this chapter or application thereof would be subsequently declared invalid or unconstitutional. (Ord. 1215 § 3 (Exh. A), 2022.) The Healdsburg Municipal Code is current through Ordinance 1218, passed October 17, 2022.

Disclaimer: The City Clerk’s office has the official version of the Healdsburg Municipal Code. Users should contact the City Clerk’s office for ordinances passed subsequent to the ordinance cited above.

City Website: https://www.ci.healdsburg.ca.us
City Telephone: (707) 431-3317
Code Publishing Company

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Healdsburg Police Department
Healdsburg PD Policy Manual
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Published with permission by Healdsburg Police Department Military Equipment Use Policy - 1
Military Equipment Use Policy
707.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072). This is further required by Healdsburg City Municipal Code Chapter

2.60 707.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Department - the City of Healdsburg Police Department (HPD) Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

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Military Equipment Use Policy
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Published with permission by Healdsburg Police Department Military Equipment Use Policy - 2
707.2 POLICY
It is the policy of the Healdsburg Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 707.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Healdsburg Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing and coordinating the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner. 707.4 MILITARY EQUIPMENT INVENTORY
The list attached hereto is divided into two section:

1. Section One - lists qualifying equipment that is owned and/or utilized by the Healdsburg Police Department.

2. Section Two - lists qualifying equipment that is not owned or regularly utilized by the Healdsburg Police Department, but which is known to be owned and/or utilized by law enforcement agencies which the departmentcollaborates and/or participates for law enforcement purposes.
707.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is

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Published with permission by Healdsburg Police Department Military Equipment Use Policy - 3
submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above.

The military equipment use policy, and any amendments thereto, shall be approved by the governing body in accordance with Chapter 12.8 of Division 7 of Title 1 of the Government Code, if the governing body determines all of the following (Government Code § 7071(d)(1)):
(a) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (b) The proposed military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties.
(c) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. (d) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

The military equipment use policy shall be reviewed and approved by the governing body at least annually through the adoption of a resolution. In the absence of such review and approval, the military equipment use policy shall expire one (1) year from the last approval date.

As part of the annual review, or from time to time as may be needed, the military equipment use policy may be amended through the adoption of a resolution by the governing body.

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Military Equipment Use Policy
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Published with permission by Healdsburg Police Department Military Equipment Use Policy - 4
707.6 COORDINATION WITH OTHER JURISDICTIONS
In exigent circumstances and with the approval of the Chief of Police or designee, military equipment may be deployed from outside entities to promote the safety and security of community members. If the Department acquires, borrows, or uses military equipment in exigent circumstances, it will provide written notification of the acquisition, borrowing or use to City Council within 30 days following the commencement of such exigent circumstance, unless such information is confidential or privileged under local, state or federal law.

Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this Department policy. Military equipment used by other jurisdictions that are providing mutual aid to this jurisdiction shall comply with their respective military equipment use policies in rendering mutual aid.
707.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 707.8 COMPLIANCE
The Chief of Police or designee will ensure that all Department members comply with this policy. A complaint, concern, or question related to Military Equipment utilization by the Healdsburg Police Department can be made as follows:
(a) Via email to: [email protected]
(b) Via phone call to: 707-431-3377
(c) Via mail sent to Healdsburg Police Department: Attn: Military Equipment Coordinator: 238 Center St, Healdsburg, CA 95448
707.9 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

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CITY OF HEALDSBURG

CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY

REGULAR MEETING MINUTES
April 15, 2024

CITY HALL COUNCIL CHAMBER
401 Grove Street, Healdsburg
.

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

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

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

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

REPORT ON CLOSED SESSION
None.

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

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

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

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ANNOUNCEMENTS/PRESENTATIONS - MARIE SPARKS VOLUNTEER

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

Director Themig introduced Andy Esquivel.

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

Phil Manoukian thanked the Council for the recognition.

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

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

ANNOUNCEMENTS/PRESENTATIONS - HEALDSBURG TOURISM

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

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

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

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

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

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

PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON

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

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

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

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

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

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

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

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

A. PROCUREMENT OF VEHICLES AND EQUIPMENT
Adopted Resolution No. 31-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG APPROVING THE PURCHASE OF A 2023 FORD MUSTANG MACH-E FROM HANSEL FORD FOR $50,996.30; AUTHORIZING THE

CITY MANAGER TO EXECUTE THE PURCHASE ORDER CONTRACT WITH HANSEL FORD; AND AMENDING THE FISCAL YEAR 2023-24 ADOPTED BUDGET” (Ayes 4, Noes 0, Absent – Kelley)

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B. PROCUREMENT OF VEHICLES AND EQUIPMENT
Adopted Resolution No. 32-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG APPROVING A CONTRACT WITH SOURCEWELL (FORMERLY NATIONAL JOINT POWERS ASSOCIATION) FOR A COOPERATIVE PURCHASE OF A 2023 FORD F-150 LIGHTNING, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONTRACT IN AN AMOUNT NOT TO EXCEED $69,144.85 AND AMENDING THE ADOPTED FISCAL YEAR 2023-24 BUDGET.” (Ayes 4, Noes 0, Absent – Kelley)
C. DECLARING VEHICLES AND EQUIPMENT SURPLUS
Adopted Resolution No. 33-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

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

FIBER IMPLEMENTATION
Adopted Resolution No. 34-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG APPROVING AN AMENDMENT TO THE SERVICE AGREEMENT BETWEEN THE CITY OF HEALDSBURG AND SONIC.NET, LLC, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENT ON BEHALF OF THE CITY” (Ayes 4, Noes 0, Absent – Kelley)
E. CONDUIT LEASE AGREEMENT WITH SONIC.NET, LLC
Adopted Resolution No. 35-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG APPROVING A CONDUIT LEASE AGREEMENT BETWEEN THE CITY OF HEALDSBURG AND SONIC.NET, LLC, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONDUIT LEASE AGREEMENT ON BEHALF OF THE CITY.” (Ayes 4, Noes 0, Absent – Kelley) F. COMMUNICAITON BRIDGE CONTRACT AMENDMENT
Adopted Resolution No. 36-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG APPROVING AN AMENDMENT TO THE

PROFESSIONAL SERVICES AGREEMENT WITH JULIE BURNS DBA THE

COMMUNICATION BRIDGE AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENT, EXTENDING THE CONTRACT TERM TO DECEMBER 31, 2024, AND INCREASING THE NOT TO EXCEED AMOUNT TO $75,000.” (Ayes 4, Noes 0, Absent – Kelley)

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G. ORDINANCE AMENDING HEALDSBURG MUNICIPAL CODE SECTION 2.08

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

CITY OF HEALDSBURG AMENDING HEALDSBURG MUNICIPAL CODE SECTION

2.08.020 TO SET THE COMPENSATION FOR EACH MEMBER OF CITY COUNCIL.” (Ayes 4, Noes 0, Absent – Kelley)
H. RESOLUTION IN SUPPORT OF THE “THE SONOMA COUNTY CHILDCARE AND CHILDREN’S HEALTH INITIATIVE”
Adopted Resolution No. 37-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG SUPPORTING "THE SONOMA COUNTY CHILDCARE AND CHILDREN’S HEALTH INITIATIVE" SUBMITTED TO THE VOTERS OF SONOMA COUNTY AT THE NOVEMBER 5, 2024, ELECTION.” (Ayes 4, Noes 0, Absent – Kelley)
I. AMENDMENT TO THE PROMISSORY NOTE FOR THE RANDALL

APARTMENTS PROJECT
Adopted Resolution No. 38-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG APPROVING AN AMENDMENT TO THE

PROMISSORY NOTE TERMS WITH EDEN MILL DISTRICT, LP FOR THE RANDALL

APARTMENTS PROJECT AND AUTHORIZING THE CITY MANAGER TO FINALIZE

THE AMENDMENT AND TAKE ANY RELATED ACTIONS NECESSARY TO COMPLETE THE TRANSACTION.” (Ayes 4, Noes 0, Absent – Kelley) The motion to approve the Consent Calendar as above carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes 4, Noes 0, Absent – Kelley)

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

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

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

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

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

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

On a motion by Councilmember Edwards, seconded by Vice Mayor Mitchell, introduce for first reading, by title only, waiving further reading of the text, “AN ORDINANCE AMENDING HEALDSBURG MUNICIPAL CODE SECTION 20.20.030 INCLUSIONARY HOUSING; AND SECTION 20.28.310 DEFINITIONS AND FIND THAT THE ORDINANCE

AMENDMENTS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).” The motion carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes 4, Noes 0, Absent - Kelley)
On a motion by Councilmember Edwards, seconded by Vice Mayor Mitchell, adopted Resolution No. 39-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG AMENDING RESOLUTION NO. 81-2019 ESTABLISHING IN-LIEU INCLUSIONARY HOUSING FEES AS PROVIDED FOR IN SECTION 20.20.030(J) OF THE CITY OF HEALDSBURG MUNICIPAL CODE.” The motion carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes 4, Noes 0, Absent - Kelley)

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

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

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

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

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

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

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

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

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

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

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

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

Megan Gregory with EPS, commented on reducing impact fees.

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

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

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

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

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

Council Comments
Comfort with Proposed Densities:

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

Reduction in Residential Parking Requirement:

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

Removal of Commercial Parking Requirement in Mixed Use Development:

Mayor Hagele introduced this topic for discussion.

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

Councilmember Edwards supports the removal of commercial parking.

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

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

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

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

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

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

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

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

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

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

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

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There were no public comments on this item.

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

Mayor Hagele expressed enthusiasm about the selected artwork.

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

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

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

OLD BUSINESS - MEMORANDUM OF UNDERSTANDING WITH SONOMA

COUNTY WASTE MANAGEMENT AGENCY (ZERO WASTE SONOMA) TO SUPPLY

COMPOST TO A CITY COMPOST HUB
Engineering Technician Scott Mann provided an overview of Senate Bill 1383, shared renderings of the compost hub at Badger Park, explained how the compost hub will operate and noted the recommended action for the evening to adopt a resolution authorizing the City Manager to sign a Memorandum of Understanding with Sonoma County Waste Management Agency (Zero Waste Sonoma) to supply compost to a City Compost Hub.

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

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

HEALDSBURG AUTHORIZING THE CITY MANAGER TO SIGN A MEMORANDUM OF

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

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

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

There were no public comments on this item.

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

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

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

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

NEW BUSINESS
None.

COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE PREVIOUS

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

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

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

WRITTEN COMMUNICATIONS
None.

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

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

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CITY OF HEALDSBURG

CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY

REGULAR MEETING MINUTES
May 6, 2024

CITY HALL COUNCIL CHAMBER
401 Grove Street, Healdsburg
.

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
On a motion by Councilmember Kelley, seconded by Vice Mayor Mitchell, approved the May 6, 2024, City Council and Redevelopment Successor Agency meeting agenda. The motion carried on a unanimous voice vote. (Ayes 5, Noes 0, Absent – None)

REPORT ON CLOSED SESSION
None.

ANNOUNCEMENTS/PRESENTATIONS - PROCLAMATION RECOGNIZING MAY 5- 11, 2024, AS PUBLIC SERVICE RECOGNITION WEEK
Mayor Hagele, with Council concurrence, issued a Proclamation recognizing May 5-11, 2024, as Public Service Recognition Week.

Chief Human Resources Officer Renee Senander thanked the Council for the recognition.

CITY MANAGER REPORTS
City Manager Kay announced the first Tuesday Farmers’ Market of the summer will kick off next week and provided an update on the improvements made to Fitch Mountain Park and Open Space, including updates to the dog park, parking lot and trail access and commented on the grand opening event held over the weekend.

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PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON

AGENDA ITEMS
Richard Cochran, Climate Action Healdsburg, Anti-Idling Committee, commented on the their work to implement an anti-idling program in local schools and inquired if the Council would advance anti-idling programs and assist the school district with implementation.

Stephanie Turk provided information about the dangers of idling and anti-idling ordinance and asked for Council support to advertise the anti-idling ordinance.

Merete Wimmer expressed concerns about a large formula retail store coming to Healdsburg and requested that the Council add formula business to a future agenda.

Katie Ward discussed the benefits of having locally owned businesses in town.

Bjorn Wimmer commented on large corporations opening a business around the Plaza and wanted to see the definition of the Plaza amended to prevent large businesses moving in.

Danny Eres expressed a desire to see the language of the formula retail ordinance expanded to include areas off the Plaza to include more of the downtown area.

Holly Brand urged Council to revisit ordinance language about formula retail businesses.

CONSENT CALENDAR
In response to Councilmember Edwards’s inquiries, Chief Boaz provided information about item 6G, Fire Department SB 1205 Inspection Report.

Mayor Hagele recused himself from item 6H as he lives within one of the assessment districts.

Councilmember Kelley recused from item 6I as she within 500ft of the project.

On a motion by Vice Mayor Mitchell, seconded by Councilmember Edwards, approved the Consent Calendar as follows:

A. APPROVAL OF MINUTES
By motion, approved the June 5, 2023 Regular Meeting Minutes, the June 20, 2023 Regular Meeting Minutes, the August 16, 2023 Special Meeting Minutes, the August 21, 2023 Regular Meeting Minutes, the September 5, 2023 Special Meeting Minutes, the September 5, 2023 Regular Meeting Minutes, the October 16, 2023 Special Meeting Minutes, the November 13, 2023 Special Meeting Minutes, the December 4, 2023 Special Meeting Minutes, and the December 18, 2023 Special Meeting Minutes. (Ayes 5, Noes 0, Absent – None)

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B. RECEIVE MONTHLY INVESTMENT REPORT FOR MARCH 2024
By motion, received and approved the Monthly Investment Report for March 2024. (Ayes 5, Noes 0, Absent – None)
C. APPROVAL OF DISBURSEMENT REPORT FOR WITHDRAWALS DURING THE MONTH OF MARCH 2024
By motion, received and approved the Disbursement Report for March 2024. (Ayes 5, Noes 0, Absent – None)
D. ADOPTION OF FISCAL YEAR 2024-25 CITY COUNCIL GOALS
By motion, approved the City Council Goals for Fiscal Year 2024-25. (Ayes 5, Noes 0, Absent – None)
E. PRUNE PACKERS REQUEST FOR ALCOHOL SALE AND CONSUMPTION FOR THE 2024 BASEBALL SEASON
By motion, waived the provisions of Section 12.28.220(A) pursuant to Section 12.28.220(B) of the Healdsburg Municipal Code that prohibits the consumption of alcohol within public parks and approved the Prune Packers' request to allow the sale and consumption of alcohol in Recreation Park for their 2024 baseball season. (Ayes 5, Noes 0, Absent – None) F. REVISIONS TO THE HEALDSBURG MUNICIPAL CODE, TITLE 20, LAND USE

CODE, TO REVISE AND CLARIFY VARIOUS SECTIONS RELATED TO

INCLUSIONARY HOUSING
Passed Ordinance No. 1239 titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF HEALDSBURG MAKING CLARIFYING UPDATES TO THE HEALDSBURG MUNICIPAL CODE BY AMENDING SECTION 20.20.030: INCLUSIONARY HOUSING AND SECTION 20.28.310: DEFINITIONS AND FINDING THAT ADOPTION OF THE ORDINANCE IS EXEMPT FROM CEQA.” (Ayes 5, Noes 0, Absent – None) G. FIRE DEPARTMENT SB 1205 INSPECTION REPORT
Adopted Resolution No. 42-2024 titled, “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.” (Ayes 5, Noes 0, Absent – None)

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H. FISCAL YEAR 2024 – 2025 LANDSCAPING AND LIGHTING ASSESSMENT

DISTRICT
This item was removed from the Consent Calendar for a separate vote.

I. ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR OLD ROSSI PHASE II

SUBDIVISION
This item was removed from the Consent Calendar for a separate vote.

J. PURCHASE OF DISTRIBUTION TRANSFORMERS FOR USE IN ACTIVE

DEVELOPMENT PROJECTS AND TO MAINTAIN LEVELS OF CITY

INVENTORIES
Adopted Resolution No. 43-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG 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.” (Ayes 5, Noes 0, Absent – None)
The motion to approve the Consent Calendar as amended above carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent – None)
FISCAL YEAR 2024 – 2025 LANDSCAPING AND LIGHTING ASSESSMENT

DISTRICT
On a motion by Councilmember Kelley, seconded by Councilmember Edwards, adopted Resolution No. 44-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG 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” The motion carried on a voice vote with Mayor Hagele abstaining. (Ayes 4, Noes 0, Abstaining - Hagele, Absent – None)

ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR OLD ROSSI PHASE II

SUBDIVISION
On a motion by Councilmember Edwards, seconded by Vice Mayor Mitchell, adopted Resolution No. 45-2024 titled, “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

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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” The motion carried on a voice vote with Councilmember Kelley abstaining. (Ayes 4, Noes 0, Abstaining - Kelley, Absent – None)

PUBLIC HEARING - CONSIDER ADOPTION OF UPDATED WATER AND WASTEWATER RATES FOR FISCAL YEARS 2024-25, 2025-26, ANS 2026-27 Utilities Director Crowley introduced the item for discussion and introduced Kevin Kostik from Raftellis who would be presenting.

Mr. Kostik, with Raftellis, reviewed the rate study process, highlighting key values and objectives, and provided information on the rate study results, noting the average monthly impact in year one for single family residential customers.

Utilities Director Crowley discussed water supply security for Healdsburg and outlined planned and removed capital projects included in the proposed rates.

Mr. Kostik further reviewed proposed modifications to the rate structure for both residential and non-residential customers, noting a proposed three-year schedule for fixed monthly service charges based on meter size and tiered usage rates for water and wastewater. Additionally, Mr.

Kostik reviewed the cost comparison of combined monthly utility bills (water, sewer, and electric) with neighboring cities and provided an overview of the adoption and implementation schedule for the proposed rates.

Director Crowley provided information on the public hearing procedures.

In response to Councilmember’s inquiries, Director Crowley provided information about prioritizing CIP projects to minimize the rate increases, presented information about how CIP projects have evolved in the last 10-15 years including facility maintenance, regulatory compliance, and infrastructure replacement, noting that regulatory compliance consumes capital resources. Director Crowley clarified the City is not meeting financial requirements for the current debt service and that needs to be prioritized first before looking at other financing options and reviewed the challenges of the Potter Valley Project. Finance Director Edgar provided information about the capital reserve fund and proposed amendment to change the fund to a rate stabilization reserve.

Mayor Hagele read aloud the procedures for the Prop 218 process and noted how to protest the proposed rates.

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Public Comment
Stanley Crane opined on the proposed rates and commented on conducting his own math on the proposed rates and expressed concern about how the rates were calculated.

Tallia Hart, CEO of the Healdsburg Chamber of Commerce, highlighted the challenges small businesses face due to rate increases and commented on how these changes will impact the broader economy.

Paulina Lopez expressed concern about how the proposed rate increases will affect farmworker families, commented on a recent livable wage case study for farmworkers and recommended conducting additional outreach and research to better understand the impact of water rates on seniors and low-income communities.

Alson Kemp acknowledged the economic impact noting the economic consequences will be even more severe if there is a water shortage and urge Council to move forward with the proposed infrastructure improvements and necessary changes.

Gary Keyes acknowledged concerns about the water rate increases and thanked the City Council for taking a proactive approach.

Richard Burg inquired about the timelines to accumulate funding to complete the proposed CIP projects.

In response to Mayor Hagele’s inquiry, City Clerk Allan noted a majority protest was not received and only 187 protest ballots were received from local residents.

Council Comments
Councilmember Herrod acknowledged the burden the rate increases will place on residents and expressed his support for the proposed rate increases, recognizing it as necessary to fund essential infrastructure improvements.

Councilmember Edwards stated that the Council will closely monitor the impact of the rates on residents.

Councilmember Kelley recognized the significant expenditures during previous emergencies and emphasized her desire to avoid repeating past mistakes by addressing infrastructure needs now and expressed support for the proposed rate increases.

Vice Mayor Mitchell acknowledged the emails received from the public on this topic, thanked staff for the thoughtful presentation, highlighted the need to move forward with critical projects, including the need for water security, updated infrastructure, the Potter Valley project, and

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addressing the impacts of drought. Vice Mayor Mitchell expressed support for adopting the proposed rate increases.

Mayor Hagele expressed appreciation for the public's feedback and acknowledged that while the decision is not an easy one, it is the right thing to do. Mayor Hagele thanked staff for their work on bringing the tiered system back to Council and was supportive of moving forward with the proposed rate increases.

On a motion by Councilmember Kelley, seconded by Councilmember Herrod, introduced for first reading, by title only, waiving further reading of the text, an Ordinance titled “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.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent – None)
PUBLIC HEARING - HEALDSBURG MUNICIPAL CODE, TITLE 20, LAND USE

CODE AMENDMENTS
Senior Planner McDowell provided an overview of the various Land Use Code amendments including changes to downtown directional signage, bicycle parking, permitted and conditionally permitted uses in the mixed-use zoning designation and definitions, water efficient landscaping, maximum floor area ratio and site coverage, and handicapped parking. Planner McDowell further noted the recommended action from the Planning Commission.

In response to Councilmember Edward’s inquiry, Senior Planner McDowell explained that the bicycle parking will not take away from vehicle parking spaces.

There were no public comments on this item.

On a motion by Councilmember Kelley, seconded by Vice Mayor Mitchell, introduced for first reading, by title only, waiving further reading of the text, an ordinance titled, “AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG MAKING

CLARIFYING UPDATES TO THE HEALDSBURG MUNICIPAL CODE BY AMENDING TITLE 20, LAND USE CODE SECTIONS 20.16.212 (DOWNTOWN DIRECTIONAL WAYFARING SIGNS), 20.16.175 (BICYCLE PARKING) 20.08.155, TABLE 12 (PERMITTED AND CONDITIONALLY PERMITTED USES IN MU), 20.16.150 (WATER EFFICIENT LANDSCAPING), 20.08.165 (MAXIMUM FLOOR AREA RATIO AND SITE COVERAGE), 20.16.160 (HANDICAPPED PARKING) AND 20.20.310 (DEFINITIONS).” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent –None)

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OLD BUSINESS - GROWTH MANAGEMENT ORDINANCE BALLOT MEASURE

DISCUSSION
City Manager Kay introduced the item for discussion, introduced who would be presenting on this item this evening, provided an overview of the different points of discussion for the evening and noted staff is seeking feedback this evening on options to amend the Growth Management Ordinance (GMO). Manager Kay detailed the list of planning efforts completed to date, reviewed the annual housing units needed by income level over the next eight years and highlighted the accomplishments of developing, rehabilitating and extending the affordability of housing units in Healdsburg over the last five years.

City Manager Kay further reviewed the history of the GMO, noting which ballot initiatives passed and failed. Additionally, he provided information about the key policy objectives in addressing the GMO.

Planning and Building Director Duiven presented an overview of three proposed options for amending the GMO including (1) exempt specific geographic areas; (2) eliminate the income restriction on Measure P multi-family rental units; and (3) permit carryover of prior unused allocations. Director Duiven further reviewed the pros and cons of the three options, the polling results of each option and noted that staff is recommending eliminating option three, carryover of previously unused GMO allocations.

City Manager Kay reviewed the feedback staff is seeking from Council, including preferred option to amend the GMO, noting if Council selected the geographic exemption, staff would need feedback on location for the exemption and reviewed what the next steps would be if Council moved forward with amending the GMO.

Public Comment
John Torres commented on his experience living in Healdsburg and expressed his support for amending the GMO, emphasizing the need for affordable housing in the community.

Andy Elkind expressed his support for the development of middle-income housing, highlighting the need for economic incentives to encourage development. Mr. Elkind also expressed concerns about density and stressed the importance of doing outreach to effectively communicate the proposed changes to the community.

Jonathan Pearlman echoed the sentiments of Mr. Elkind’s and expressed his support for option two, eliminating the income restriction on Measure P multi-family rental units and opined exempting the downtown may be hard to explain in a ballot measure.

Ann Amtower commented on her experience living in Healdsburg, expressed concern about maintaining affordability for both middle-income and low-income housing and proposed creating

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smaller communities with multi-unit housing that would be accessible to people of all ages and income levels.

Ken Munson expressed appreciation for the first two public commentors and emphasized the importance of continued dialogue and the exchange of ideas. Mr. Munson stated his support for the development of middle-income housing.

Richard Burg commented on the proposed options to amend the GMO, inquired about what would incentivize a developer to build in Healdsburg.

Jim Heid commented on the presentation from the evening, opining on an opportunity to leverage incentives, policy changes, and Healdsburg's natural appeal to achieve the City's goals and acknowledged challenges with geographic exemption.

Tallia Hart agreed with Jim Heid’s comments and commented on the small percentage of people who live and work in Healdsburg and expressed support for amending the GMO.

Council Comments
Councilmember Edwards commented on amending the GMO and expressed support for option one, exempting geographic areas.

Following a brief discussion, there was Council consensus to eliminate option three, carryover of previously unused GMO allocations as one of the options to amend the GMO.

Councilmember Herrod commented on amending the GMO and expressed disappointment that home ownership for missing middle housing is not feasible at this time. Councilmember Herrod expressed support for option two, eliminating the income restriction on Measure P multi-family rental units, highlighting that this option would focus on rental housing for moderate-income levels.

Councilmember Kelley was supportive of option one, exempting specific geographic areas and believes this is the best option to achieve increased rental or homeownership opportunities.

Councilmember Kelley further acknowledged option two as a viable option but commented that this may not result in the same level of housing production as option one.

In response to Councilmember Herrod’s inquiry, Councilmember Kelley commented on zoning, increasing density and the land use process being separate from the ballot measure.

Vice Mayor Mitchell reflected on previous GMO ballot measures, not repeating past experiences and was supportive of option one, the geographic exemption, highlighting the potential to facilitate the development of for-sale units. Vice Mayor Mitchell concurred with Councilmember Kelley about separating zoning regulations and density restrictions from the amendment.

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Councilmember Kelley commented on water use for multifamily and single-family homes.

Mayor Hagele commented on the availability of recycled water, reflected on the challenges associated with Measure R and was supportive of option one, exempting geographic areas.

Mayor Hagele agreed with addressing zoning and density separate from the amendment.

In response to Mayor Hagele’s inquiry, Director Duiven commented on addressing zoning changes and the Downtown Housing Capacity Study.

Council discussion ensued on increasing housing units, the two options on the table to amend the GMO, potential concerns of those who may oppose option one, the passage of Measure H in 2020, messaging the potential amendment, high density housing and creating the opportunity for for-sale and rental units.

City Manager Kay summarized the feedback received this evening, noting there was Council majority support to move forward with option one, the geographic exemption, thanked Council for the feedback and asked Council to think about potential locations for the exemption.

NEW BUSINESS - SAGGIO HILLS AND BADGER PARK DESIGN PRIORITIES AND

PHASING
Mayor Hagele introduced this item for discussion, noting the presentation would be split into two parts. Badger Park would go first and Saggio Hills would go second. Mayor Hagele recused from the second half of the presentation as he lives within 500ft of the Saggio Hills Development.

Badger Park
Community Services Director Mark Themig stated the action this evening, provided background information on the planning process for Saggio Hills and Badger Park, highlighting its current stage, projected project costs, including the original and current funding plans. Director Themig outlined the proposed approach to address park planning given the current funding and provided information about the preliminary Master Plan for Badger Park.

Director Themig further reviewed the specific uses for the funding allocated to Badger Park, other priority considerations, potential new amenities for the park and shared the Parks and Recreation Commission’s recommendation.

Council Comments
Councilmember Herrod supports the Parks and Recreation Commission’s recommendation and was happy to hear that river access and the addition of flushed toilets is a priority.

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Councilmember Kelley concurred with Councilmember Herrod and expressed appreciation with the priorities for river access and addition of flushed toilets.

In response to inquiries from Councilmembers, Director Themig confirmed the City’s plans to pursue additional funding and outlined the requirements for securing further grant support from Ag and Open Space. He also discussed the potential development of sports courts, including pickleball courts.

Councilmember Edwards opined on adding soccer and basketball courts, expressed support for including flush toilets, and encouraged staff to continue to pursue additional grant funding.

Vice Mayor Mitchell inquired when construction would begin and expressed support for the addition of flushed toilets and commented on the dog park at Badger Park.

Mayor Hagele was supportive of the Parks and Recreation Commission’s recommendation, encouraged the development of an innovative play structure that suits all ages and urged staff to remain mindful of the timing and coordination of new infrastructure projects.

Public Comment
Jonathan Pearlman expressed his appreciation for Councilmember Kelley’s comments regarding the park entrance updates, shared a desire to see a designated area for large dogs and expressed his support for improvements to river access.

Mayor Hagele left the Council Chamber at this time.

Saggio Hills Development Park
Director Themig provided information on the Final Master Plan for Saggio Hills Development Park, reviewed the five main components of the plan, highlighted development priorities, and addressed other critical considerations. Director Themig provided insights on the planned use of the soccer, football, and baseball fields and shared the Parks and Recreation Commission’s recommendation.

In response to Councilmembers’ inquiries, Director Themig discussed the issues with the existing baseball fields, the needs of little league, commented on the parking area off Passalacqua and clarified the proposal is for a modest sports component and community amenities based on funding and staff will prioritize decisions based on cost. Additionally, Director Themig noted the feedback he needs from the Council regarding their support for the Parks and Recreation Commission’s recommendations on park development and amenities, considering the available funding.

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Council Comments
Councilmember Edwards supports a capacity of 150 people for the Community Pavilion.

Councilmember Herrod acknowledged the needs of different user groups and was supportive of the Community Pavilion and the Parks and Recreation Commission’s recommendations.

Vice Mayor Mitchell expressed support for the Parks and Recreation Commission’s recommendations.

There were no public comments on this item.

Director Themig noted he had the direction he needed and provided an update on the Saggio Hills park naming process.

COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE PREVIOUS

REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS
Councilmember Edwards reported he attended an event at Coyote Sonoma, the Climate Fest on the Plaza, Scattered Sites Affordable Housing construction project ribbon cutting, attended a Zoom meeting with Supervisor Gore on homeowners insurance, the AV Film Festival and the Fitch Mountain Park and Open Space ribbon cutting ceremony.

Vice Mayor Mitchell reported she attended the Climate Fest on the Plaza, Scattered Sites Affordable Housing construction project ribbon cutting and the Fitch Mountain Park & Open Space ribbon cutting ceremony.

Councilmember Kelley reported she attended the Sonoma Family Meal dinner event, and the Sonoma County Transportation Authority meeting.

Councilmember Herrod is looking forward to the Future Farmers Parade, and the upcoming Arundo clearing event at Memorial Beach.

Mayor Hagele reported he attended the Climate Fest on the Plaza, the Scattered Sites Affordable Housing construction project ribbon cutting, the Celebration of Scholarship Funds for STEM, read aloud a Proclamation for AV Film and attended the Fitch Mountain Park and Open Space ribbon cutting ceremony. Mayor Hagele thanked staff for all their hard work at the Fitch Mountain ribbon cutting ceremony.

Councilmember Kelley requested a discussion about Formula Retail Businesses be added to an upcoming Council Meeting agenda.

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There was Council majority to move forward with a discussion on Formula Retail Businesses after the July break.

WRITTEN COMMUNICATIONS
None.

ADJOURNMENT
There being no further City Council/Redevelopment Successor Agency business to discuss, the meeting was adjourned at approximately 10:20 p.m.

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

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Packet Pg. 156 Attachment: May 6, 2024 Regular Meeting Minutes (4770 : Approval of Minutes - March 3, 2025)

CITY OF HEALDSBURG

CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY

SPECIAL MEETING MINUTES
May 13, 2024

CITY HALL COUNCIL CHAMBER
401 Grove Street, Healdsburg
.

CALL TO ORDER/ROLL CALL
Mayor/Chairperson Hagele called to order the special meeting of the City Council and Redevelopment Successor Agency of the City of Healdsburg at 5:02 p.m. with the following Council Members present:

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

Absent: Council Members/: None.

Board Members

APPROVAL OF AGENDA
On a motion by Councilmember Herrod, seconded by Councilmember Edwards, approved the May 13, 2024, City Council and Redevelopment Successor Agency meeting agenda. The motion carried on a unanimous voice vote. (Ayes 5, Noes 0, Absent – None)

PUBLIC COMMENTS ON ITEMS ON NON AGENDA ITEMS
Mark McMullen commented on the Arts and Culture Master Plan, expressed disappointment over the absence of a dedicated full-time staff member to oversee the implementation of the Arts and Culture Master plan and commented on the funds allocated to Arts and Culture.

NEW BUSINESS – FISCAL YEAR 2024-25 BUDGET WORKSHOP
Finance Director Edgar stated the action this evening was to receive a presentation from City staff on the preliminary Fiscal Year 2024-25 and 2025-26 budget and to provide feedback and direction to staff on budget elements. Director Edgar reviewed the agenda for the evening, the timeline to develop the budget for fiscal year 2024-25 and 2025-26, the 2024-2026 budget goals, presented an analysis of the economic outlook, covering factors such as inflation rates, federal funding, and the economic drivers of Healdsburg.

Director Edgar further outlined the operational impacts to the budget including increases in insurance, benefits, cost-of-living adjustments, and the rising costs of materials and services.

Director Edgar highlighted major initiatives and proposed capital improvement projects for the next two fiscal years. Additionally, Director Edgar reviewed the discussion topics for each fund,

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including revenue estimates, proposed expenditures, fund balance projections, new initiatives incorporated into the budget, and initiatives not included in the budget.

General Fund
Finance Director Edgar provided a detailed overview of the various revenue sources for FY 2024-25 and FY 2025-26, noting the total revenue in the general fund is projected to slightly exceed the current fiscal year’s budget, with a proposed budget of $18.6 million for FY 2024-25 and $19.2 million for FY 2025-26. Director Edgar provided an overview of general fund expenditures by department, noting that total expenditures for the current fiscal year are expected to come in slightly under budget. Director Edgar further reviewed the initiatives included and excluded in the budget and provided an overview of the estimated General Fund balance.

In response to Councilmember’s inquiries, Director Edgar provided an overview of how the Type 1 Fire Engine is being funded and Fire Chief Boaz provided details on the Type 1 Engine replacement, noting a build time of 24 to 36 months at the time the order is placed. Additionally, Director Edgar reviewed how the pension stabilization fund operates, how it is funded and noted that property transfer tax transactions have declined, due to the effects of COVID-19 and interest rates.

Public Comment
Cindy Beth commented on Healdsburg Little League’s use of baseball fields and urged the Council to prioritize children's programs.

Special Revenue Funds
Director Edgar provided an overview of Measure S funds, noting a budget change with the inclusion of funding for the L&M Project, reviewed the Measure T revenues and expenditures, noting an estimated ending balance of around $5,000, and no additional revenue is expected to fund unanticipated needs during the budget cycle. Director Edgar further reviewed Measure H, noting revenues are not anticipated until the end of 2024 and staff is proposing to fund the addition of one Fire Inspector position and the completion of a standards of cover survey.

City Manager Kay clarified the addition of the Fire Inspector position.

In response to Councilmember inquiries, Director Edgar provided information on the CARE program, utility discounts.

There were no public comments on this section.

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Community Services Revenue
Finance Director Edgar provided information on the revenue sources for the Community Services budget, highlighting the Transient Occupancy Tax (TOT) is anticipated to increase in the first fiscal year and more significantly in the second year, due to new hotel openings.

Director Edgar further reviewed the expenditures for FY 2024-25, noting the projected expenditures are $8 million, rising slightly to $8.3 million in FY 2025-26.

Director Edgar further reviewed the initiatives included and excluded in the proposed Community Services budget and the funding for capital improvement projects including $6.8 million for Phase I of the Badger Redevelopment and Saggio Hills Park projects. The budget for FY 2024-25 proposes using $300,000 from the operating reserve.

City Manager Kay commented on the Community Services budget, the decrease in TOT revenue received and the funds invested into current projects. Manager Kay noted the City remains positioned to maintain operations and invest in deferred maintenance and informed Council that the projections for the next couple of years are a conservative estimate.

In response to Councilmember inquiries, City Manager Kay clarified that a significant increase in TOT revenue would be necessary to proceed with the deferred projects. Director Edgar explained that sponsorship revenue has declined due to the reduction of HTID grants and provided the estimated cost for the initiatives not included in the budget.

Public Comment
Mark McMullen commented on $25,000 for support staff for the Arts and Culture Commission.

Street Fund Revenues
Finance Director Edgar outlined the sources of revenue for the Street Fund, noting the proposed expenditures are $1.5 million for FY 2024-25 and $1.6 million for FY 2025-26. Director Edgar provided information on the budget allocations for street capital projects and reviewed the streets fund balance, noting the process of right-sizing the streets and drainage operating fund will be completed by FY 2025-26, with a proposed positive ending fund balance of $2,000.

In response to Councilmember inquiries, Director Zimmer noted that with the addition of SMART, work on Front Street for pedestrian and bike improvements would be duplicative, and the work has stopped. Director Zimmer further clarified that securing funding for addition of roundabouts on Dry Creek can be a lengthy process, but staff is working on it.

Enterprise Funds

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Finance Director Edgar reviewed the proposed Water Utility budget for FY 2024-25, noting the proposed budget is $6.9 million, with an increase to $8.3 million in FY 2025-26. Director Edgar provided information on the proposed expenses for the Water Utility over the next two fiscal years and the Water Utility ending fund balance.

Director Edgar further reviewed the proposed Wastewater Utility budget for FY 2024-25, noting the proposed budget is $9.1 million, increasing to $10.7 million in FY 2025-26. Director Edgar provided information on the proposed expenses for the Wastewater Utility over the next two fiscal years and the Wastewater Utility ending fund balance. Additionally, Director Edgar provided an update on the deficit in the drainage fund balance noting significant progress has been made but a structural deficit remains.

Director Edgar reviewed the proposed Electric Utility revenues, noting total revenue of $16.4 million for FY 2024-25 and $17.7 million for FY 2025-26. Director Edgar provided information on Electric operating expenses, proposed capital project expenses and the Electric Utility Fund balance. Director Edgar reviewed the key highlights of the Utility fund, including items included in the budget and those not included.

In response to Councilmember inquiries, Director Crowley provided information on the cost structure for the electric utility and on electric smart meter readers, clarifying that the goal is to develop software that will allow customers to access interval data, with plans to integrate this in the FY 2025-2026 budget cycle.

Internal Service Funds
Director Edgar presented the internal service fund budget, reviewed the list of proposed vehicle replacements over the next two fiscal years, proposed building maintenance projects in FY 2024- 25 and FY 2025-26. Additionally, Director Edgar reviewed the Information Services fund, noting the plan to enter into a five-year security contract in FY 2024-25, replacing the annual contract and resulting in savings.

Public Comment
Mark McMullen inquired about the City's Wi-Fi infrastructure and encouraged the Council to consider expanding Wi-Fi access throughout Healdsburg.

City Manager Kay asked for additional feedback or questions of the Council.

Council Comments
Councilmember Herrod thanked staff for their hard work and expressed appreciation for how well-informed the Council has been throughout the process and expressed gratitude about the thoroughness of the presentation.

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Councilmember Kelley was supportive of allowing the Arts and Culture Commission to return to Council in the future with a proposal outlining how to spend the $50,000 for grant funding, acknowledged the absence of certain capital projects from the list and emphasized the importance of being cautious with spending decisions.

Councilmember Edwards thanked staff for their hard work and is pleased to hear about the grants that are funding various projects.

Vice Mayor Mitchell thanked staff for their hard work and commented on how impressed she was with the numerous capital projects underway and was appreciative of the conservative approach to the budget. Vice Mayor Mitchell expressed concern regarding the community services budget and L&M funding.

Mayor Hagele echoed the sentiments of his fellow Councilmembers and acknowledged the increase in water rates, noting that the public can now clearly see how the funds are being allocated.

ADJOURNMENT
There being no further City Council/Redevelopment Successor Agency business to discuss, the meeting was adjourned at approximately 6:35 p.m.

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

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Packet Pg. 161 Attachment: May 13, 2024 Special Meeting Minutes (4770 : Approval of Minutes - March 3, 2025)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: March 3, 2025
SUBJECT: Saggio Hills Affordable Housing Project
PREPARED BY: Griselda Villarreal, Administrative Analyst II STRATEGIC INITIATIVE(S):

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

Conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing and adopt a resolution approving the issuance of up to $30 million in tax-exempt bonds through the California Municipal Finance Authority to finance or refinance the Saggio Hills project.

COMMUNITY ENGAGEMENT/OUTREACH:

The item before the Council is being conducted as a public hearing in accordance with the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986. A TEFRA hearing is a public process mandated by the Internal Revenue Service (“IRS”) for non-profit borrowers that intend to finance a project with tax-exempt financing. This public hearing provides the public with an opportunity to comment on the use of tax-exempt bond proceeds.

BACKGROUND:

On April 21, 2023, the City of Healdsburg entered into a Disposition and Development Agreement (“DDA”) with Freebird Development Company, LLC (“Project Wide Developer”), establishing the terms and conditions for the transfer of City property to Project Wide Developer and the financing, construction, and long-term affordability of the Saggio Hills Affordable Housing Project (“Project”) to be constructed thereon. In accordance with the terms of the DDA governing assignments, the City Manager subsequently approved the Partial Assignment and Assumption of the DDA from the Project Wide Developer to Saggio Hills Lot 14, L.P., a California limited partnership (“Phase 1 Developer”), for the development of the Phase 1 Project, as defined in the DDA.

Saggio Hills Phase 1
Per the DDA, 47 of the 48 units in the Phase 1 Project will be deed-restricted for affordable rent

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for at least 55 years, with one unit designated for the manager. The development will also feature 60 surface parking spaces, along with hardscape and landscaping improvements.

On August 27, 2024, the Phase 1 Developer submitted an application to the California Debt Limit Allocation Committee and was awarded $19,650,000 from the 2024 State Ceiling on Qualified Private Activity Bonds on December 11, 2024.

The California Municipal Finance Authority (“CMFA”) will serve as the issuer of tax-exempt financing in an amount not to exceed $30,000,000 in aggregate principal. The proceeds from the bonds will be used to finance the acquisition, construction, improvement, development and equipping of the Phase 1 Project of multifamily rental housing located at 450 Parkland Farms Boulevard, Healdsburg (Portion of APNS 091-310-005 and 091-310-006; Parcel A, Lot 2, and Lot 14). The Phase 1 Project will be owned and operated by Phase 1 Developer, Saggio Hills Lot 14, L.P., a California limited partnership.

TEFRA Hearing
To ensure all or a portion of the bonds qualify as tax-exempt, the City of Healdsburg must conduct a public hearing in accordance with TEFRA. Pursuant to the Internal Revenue Code, the governing body of the jurisdiction where the project is located must approve the issuance of bonds following the conduct of a publicly noticed hearing. This hearing, known as a TEFRA Hearing, is mandated by the Tax Equity and Fiscal Responsibility Act of 1982.

A TEFRA Hearing provides a reasonable opportunity for interested individuals to express their views, either orally or in writing, on the issuance of the bonds and the nature of the projects for which the bond funds will be used.

Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project (in this case, the City) must approve issuance of the bonds for the financing of the Project.

DISCUSSION/ANALYSIS:

Staff is recommending that the City Council:
1) Conduct a public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended;
2) Adopt a resolution approving the proposed plan of finance of the California Municipal Finance Authority to issue and reissue from time to time one or more series of revenue bonds in an outstanding principal amount not to exceed $30,000,000 in the aggregate for the purpose of financing or refinancing the acquisition, construction, improvement and equipping of the Phase 1 Project, for a qualified residential rental project, and certain other matters relating thereto.

ENVIRONMENTAL STEWARDSHIP:

The approval of this item does not have a direct correlation to environmental stewardship.

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ALTERNATIVES:

The City Council may choose to:

1. Not hold the public hearing or join CMFA, at which point staff would seek additional direction from the City Council.

FISCAL IMPACT:

The proposed action will authorize the issuance of up to $30,000,000 in revenue bonds of which up to $19,650,000 are currently authorized to be Tax-exempt by the California Debt Limit Allocation Committee. Freebird Development Company, LLC will bear sole responsibility for all issued debt and the City will have no role in or responsibility for any future debt payments. The Board of Directors of the California Foundation for Stronger Communities, a California nonprofit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. Upon completion of a bond issuance to the Sponsors, the City will receive a portion of the issuance fee attributable as general fund revenue.

CMFA staff indicated that the City will receive approximately $12,500 from this issuance.

ENVIRONMENTAL ANALYSIS:

The Saggio Hills Affordable Housing Project is addressed in the Final Environmental Impact Report for the Saggio Hills Planned Development Project (State Clearinghouse No. 2003062025) which was certified by the Healdsburg City Council through the adoption of Resolution No. 15- 2011. Certain components of development on the site (extension of Parkland Farms Boulevard and related utilities; rough grading of Affordable Housing Land; filling of wetlands and establishment of mitigation wetlands; creek restoration) were addressed at a project-level in the Saggio Hills Project EIR. The Saggio Hills Project EIR addressed the development of up to 150 units of affordable housing on the site at a programmatic level. An initial Study/Environmental Checklist was prepared for the Saggio Hills Affordable Housing Project, and based on the analysis contained therein, the Community Development Director determined that an Addendum to the Saggio Hills Project EIR, is the appropriate environmental document for the Project. Based upon substantial evidence demonstrated by the analysis included in the Addendum, none of the conditions described in Sections 15162 or 15163 of the CEQA Guidelines calling for the preparation of a subsequent or supplemental EIR or negative declaration have occurred, specifically:
(a) There have not been any substantial changes in the Project that require major revisions of the Saggio Hills Project EIR because of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (b) There have not been any substantial changes with respect to the circumstances under which the Project is undertaken that require major revisions of the Saggio Hills Project EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and (c) There is no new information of substantial importance, which was not known and could

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not have been known with the exercise of reasonable diligence at the time the Saggio Hills Project EIR was certified, that shows any of the following:
i. the Project will have one or more significant effects not discussed in the Saggio Hills Project EIR;
ii. significant effects previously examined will be substantially more severe than shown in the Saggio Hills Project EIR;
iii. mitigation measures or alternatives previously found not to be feasible would in face be feasible and would substantially reduce one or more significant effects of the Project, but the project proponents decline to adopt the mitigation measure or alternative, or
iv. mitigation measures or alternatives which are considerably different from those analyzed in the Saggio Hills Project EIR would substantially reduce one or more significant effects on the environment, but the Project proponents decline to adopt the mitigation measure or alternative.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. 2025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING A PLAN OF FINANCE OF THE

CALIFORNIA MUNICIPAL FINANCE AUTHORITY TO ISSUE

AND REISSUE BONDS IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $30,000,000 FOR THE PURPOSE OF

FINANCING OR REFINANCING THE ACQUISITION,

CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF PHASE
1 OF SAGGIO HILLS AFFORDABLE HOUSING PROJECT, A

QUALIFIED RESIDENTIAL RENTAL PROJECT, AND CERTAIN

OTHER MATTERS RELATING THERETO
WHEREAS, on April 21, 2023, the City of Healdsburg entered into a Disposition and Development Agreement (“DDA”) with Freebird Development Company, LLC (“Project Wide Developer”), establishing the terms and conditions for the transfer of City property to Project Wide Developer and the financing, construction, and long-term affordability of the Saggio Hills Affordable Housing Project (“Project”), to be constructed thereon; and WHEREAS, in accordance with the terms of the DDA governing assignments, the City Manager subsequently approved the Partial Assignment and Assumption of the DDA from the Project Wide Developer to Saggio Hills Lot 14, L.P., a California limited partnership (“Phase 1 Developer), for the development of the Phase 1 Project, as defined in the DDA; and WHEREAS, Freebird Development Company and Jamboree Housing Corporation (the “Sponsors”), on behalf of Saggio Hills Lot 14, L.P., a California limited partnership, or another ownership entity created by one or both of JHC-Saggio Hills Lot 14, LLC, a California limited liability company, or Freebird Saggio Hills Lot 14 LLC, a California limited liability company, its general partners (the “General Partners”), or by another affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”), has requested that the California Municipal Finance Authority (the “Authority”) undertake a proposed plan of finance to issue and reissue from time to time one or more series of revenue bonds in an outstanding principal amount not to exceed $30,000,000 (the “Bonds”) to finance and refinance the acquisition, construction, development and equipping of a 48-unit qualified residential rental project (the “Phase 1 Project”) to be owned and operated by the Borrower and located at 450 Parkland Farms Boulevard within the City of Healdsburg, California (the “City”) on a site that is currently undeveloped land comprised of (i) a 1.7-acre parcel on the western side of Parkland Farms Boulevard, the northern border of which is approximately 25 meters to the south of the intersection of Parkland Farms Boulevard and Passalacqua Drive, and (ii) a 3.7-acre parcel on the eastern side of Parkland Farms Boulevard, the northern border of which is approximately 50 meters to the south of the intersection of Parkland Farms Blvd. and Passalacqua Drive; and WHEREAS, an “applicable elected representative” of the jurisdiction in which the Project is to be located is required to approve the proposed plan of finance for the Project under Section

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147(f) of the Internal Revenue Code of 1986, as amended (the “Code”); and WHEREAS, the City Council of Healdsburg (the “City Council”) is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and
WHEREAS, the Authority has advised that the Bonds may be issued pursuant to a “plan of finance” to issue an original issue of Bonds and to issue or reissue one or more additional series of Bonds from time to time after the original issue of Bonds, if necessary or desirable to comply with applicable legal requirements, all in an aggregate principal amount not to exceed $30,000,000 to finance the Phase 1 Project, and all within the three-year period commencing on the date of the issuance of the first series of Bonds pursuant to this resolution; and WHEREAS, the Authority has requested that the City Council approve the proposed plan of finance in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the proposed plan of finance for the Phase 1 Project; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Healdsburg as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The City Council hereby approves the proposed plan of finance of the Authority to issue and reissue from time to time one or more series of revenue bonds in an outstanding principal amount not to exceed $30,000,000. It is the purpose and intent of the City Council that this resolution constitute approval of the proposed plan of finance for the Phase 1 Project for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Phase 1 Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any

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planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

Section 6. The City Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111
Section 7. This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Healdsburg this 3rd day of March 2025, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAINING: Councilmembers:

SO ORDERED: ATTEST:
__________________________________ ____________________________________ Evelyn L. Mitchell, Mayor Raina Allan, City Clerk

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Packet Pg. 168 Attachment: Resolution [Revision 1] (4766 : Saggio Hills TEFRA Hearing CMFA)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: March 3, 2025
SUBJECT: Revisions to the Healdsburg Municipal Code Title 20, Land Use Code PREPARED BY: Ellen McDowell, Senior Planner
STRATEGIC INITIATIVE(S):

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

Conduct a public hearing and, by motion, introduce for first reading, by title only amending Healdsburg Municipal Code Title 20 (Land Use Code), Chapter 20.08 (base zoning districts), Article VI (Commercial Districts), Sections 20.08.115, 20.08.120, 20.08.125, 20.08.130,

20.08.135, 20.08.145 (Table 10), 20.08.155 (Table 12), Chapter 20.28 (Administration), Article IX (definitions), Section 20.28.310, Article V (Conditional Use Permits), Section 20.28.165 and adding Section 20.20.115 to Chapter 20.20 (standards for specific land uses), article II (Commercial-Related Regulations) regarding formula businesses downtown and prohibiting big box retail and outlet malls throughout the City.

COMMUNITY ENGAGEMENT/OUTREACH
At the May 6, 2024, City Council meeting, in response to comments made during “Public Comment on Non-Agenda Items” the Council requested that a discussion about formula businesses in Downtown Healdsburg be placed on a future agenda.

On August 8, 2024, staff attended the Chamber of Commerce’s Government Affairs Committee to discuss the current implementation of City policies related to Formula Businesses and hear concerns from downtown businesses.

On August 19, 2024, the City Council discussed and received input from the public on the issue of formula businesses in Downtown Healdsburg. The City Council directed staff to return with policy considerations and options to regulate formula businesses within the downtown area.

On December 2, 2024, the City Council discussed formula businesses, heard input from the public, and provided direction to staff to prepare an Ordinance regulating formula businesses in

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the Plaza Retail and Downtown Commercial zoning districts up to North Street (regulations would apply to both sides of North Street) and to prohibit big box retail and outlet malls throughout the City.

On January 28, 2025, the Planning Commission held a public hearing to review the proposed amendments to the land use code and made a recommendation to the City Council.

BACKGROUND:

The existing Healdsburg 2030 General Plan, adopted in 2009, includes the following definitions, policies, and implementation measures related to formula businesses, big box retail, and outlet malls:

Existing Definitions:

Formula business: A business that is generally required by contractual or other arrangement to maintain any of the following: standardized services, menus, decor, uniforms, architecture, signs or other similar features and is not part of a locally- or regionally based group of businesses.

Big box retail: Large retail stores that are several times the size of a traditional store in their category, rely on auto-borne customers drawn from a large area and follow a prescribed formula applied to multiple other locations. The stores are typically large, single-story buildings with a multi-story mass and standardized facades, surrounded by parking lots.

Outlet mall: A shopping center comprised primarily of retail establishments that sell a single manufacturer’s product and draw customers from a much larger service area than a typical retail establishment.

Related General Plan Policies:

LU-D-5 Formula businesses are prohibited on properties around the historic Plaza in order to preserve its character of small, unique businesses that are attractive to residents and visitors.

LU-E-1 Big box retail and outlet malls are prohibited within the City of Healdsburg.

ED-B-3 Formula businesses shall be prohibited on properties around the Plaza in order to support local- and independently owned businesses and protect and enhance Healdsburg’s unique character.

Related General Plan Implementation Measures:

LU-16 Amend the Zoning Ordinance to:
a. Regulate formula businesses for properties around the Plaza. b. Prohibit big box retail businesses and outlet malls throughout the city. c. Regulate large single-tenant commercial buildings around the Plaza. d. Ensure that development outside of the downtown complements but does not compete with its role as the city’s commercial core.
e. Replace the Highway Commercial zoning district with a Mixed-Use Commercial district to be more responsive to market demand and to promote mixed commercial and residential uses at higher densities.

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f. Combine the industrial zoning districts and revise the list of allowed and conditionally permitted uses to reflect changes to the local economy and regulate uses that generate significant off-site impacts.
g. Set standards for what qualifies as a subordinate use when associated with mixed use and other types of development.

ED-12 Amend the Zoning Ordinance to:
a. Prohibit formula businesses on properties around the Plaza b. Ensure that development outside of the downtown complements, but does not compete with, its role as the city’s commercial core
c. Regulate large single-tenant commercial buildings around the Plaza The above policies and programs call for updates to the City’s Land Use Code (zoning ordinance) in order to ensure effective implementation. In December of 2009, the City completed land use code amendments addressing both e. and f. of General Plan Policy Implementation Measure LU-16. The Land Use Code was amended to replace the highway commercial zoning district with a mixed-use commercial district, the industrial zoning districts were combined, and the list of industrial uses amended.

Through the proposed amendments outlined below, staff proposes to address items a. and b. of implementation measures LU-16 and ED-12. In addition to formula businesses, staff is proposing to address the policies related to big box retail and outlet malls.

Since 2009, staff has implemented and enforced the prohibition on formula businesses around the Plaza, pursuant to the General Plan policies noted above. Staff has interpreted these policies to apply to properties within the Plaza Retail District only.

Based on input from the City Council in December 2024, Staff prepared an ordinance for review and consideration by the Planning Commission and a recommendation to the City Council.

On January 28, 2025, the Planning Commission held a public hearing and adopted a Resolution (4-2 with one commissioner absent) recommending the City Council approve an Ordinance revising and clarifying sections related to formula businesses and prohibiting big box retail and outlet malls throughout the City. The Planning Commission recommended that the City Council change the phrase “substantially identical” to “substantially similar” within the proposed definition of Formula Retail and requested that the City Attorney’s office review the legality of a Conditional Use Permit lapsing after six months if the business ceases to operate.

DISCUSSION/ANALYSIS:

During Planning Commission deliberations there was a significant amount of discussion in three areas related to the option to consider Conditional Use Permit (CUP) for formula retail businesses:
1) Commissioners expressed concern that a CUP process, while consistent with how some communities approach formula businesses, will result in some implementation challenges and may end up with unintended consequences.

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Council asked staff to prepare an ordinance whereby a formula retail business that serves a need downtown that is currently not being met could apply for and receive a CUP subject to specific findings. Commissioners expressed concern about how that need would be determined and, since CUPs run with the land, what would happen if a particular formula business left and was replaced by a formula business that does not serve a need that isn’t already being met. For example, if a sporting goods store were replaced by a restaurant that qualifies as a formula retail business. As written, and if there was not a 6-month lapse between uses, the restaurant would be able to assume that CUP.

The most effective way to address this scenario would be by creating formula retail categories and sub-categories, such that a change from one use to another would require a new CUP. The CUP would apply to other formula retail businesses within the same category but a new formula retail business in a different use category would require a new CUP. This approach would require substantial changes to the proposed ordinance, primarily to determine the appropriate list of formula retail categories and sub-categories.

These revisions would require staff to return to the Planning Commission for review prior to bringing the ordinance to the City Council. Even after completing this process, there is no guarantee that the defined list of subcategories will fully cover all potential businesses or the nuances in business models that may be basis of the primary justification for the initial CUP issuance.

As written, the proposed ordinance carries some risk that there will be unintended consequences in the form of allowed formula businesses that were not specifically approved by the Planning Commission. Although staff believes this risk is relatively low, it is nevertheless worthy of consideration by the City Council. 2) Some Commissioners suggested that formula retail businesses should be prohibited within all or a portion of the Downtown Commercial district, in addition to the Plaza Retail district. Additional discussion amongst the Commission revolved around the geographic boundaries of the prohibition on formula businesses and whether that prohibition should extend throughout the entirety of the Downtown Commercial district which extends to Piper Street or end at North Street as proposed. Ultimately, the Planning Commission recommended an ordinance with boundaries consistent with the direction provided by the City Council.
3) The Planning Commission discussed concerns with the lapsing of a Conditional Use Permit after 6 months. Conditional use permits or CUPs “run with the land” meaning that they remain valid for the duration of the use regardless of any future changes in property or business ownership. A City must make specific findings to approve a conditionally permitted use, and the City may place conditions on any approval; the conditions are binding on subsequent users of the CUP. CUPs cannot be conditioned on “nontransferability.” County of Imperial v McDougal (1977) 19 C3d 505, 510; Anza Parking Corp. v City of Burlingame (1987) 195 CA3d 855, 860. Once a permittee has incurred substantial expense and acted in reliance on the CUP, the courts may consider the permittee to have acquired a fundamental vested right. See Malibu Mountains Recreation, Inc. v County of Los Angeles (1998) 67 CA4th 359, 368. When the permittee

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has acquired such a vested right, the CUP may be revoked, following due process which includes a noticed public hearing, if the permittee fails to comply with reasonable terms or conditions in the permit or if there is a compelling public necessity. See Bauer v City of San Diego (1999) 75 CA4th 1281, 1294. The ordinance proposed for the Council’s consideration includes a provision whereby use permits shall lapse if the use for which the permit was issued ceases to operate for a period of six (6) months or more. This is not a revocation of the CUP; instead, if the use for which the CUP was issued ceases to operate for the specified period of time, a new CUP is required for any formula retail business to operate at that location. Various Sonoma County jurisdictions, including the City of Santa Rosa, City of Petaluma, Town of Windsor and the City of Cloverdale have similar provisions.

Overview of Land Use Code Amendments
The draft ordinance (Attachment 1) makes several amendments to Title 20 to clarify various sections of the Land Use Code to regulate formula businesses and prohibit big box retail and outlet malls throughout the City. The City Council requested an ordinance regulating formula retail businesses in the Plaza Retail and Downtown Commercial zoning designations up to North Street (including both sides of North Street) and prohibiting big box retail and outlet malls throughout the City. Figure 1 details the boundary within which formula retail would not be a permitted use.

Figure 1

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To support the ongoing implementation of the City’s General Plan, staff recommends changes to the sections of the Land Use Code outlined below and included in the attached ordinance.

Title 20 Land Use Code, Article VI, Section 20.08.115 (Purposes):

This section has been revised to further clarify the intent of downtown’s role as the City’s commercial core and the City’s intent to promote a variety of retail businesses. The changes will also highlight the prohibition of big box retail and outlet malls throughout the City.

Title 20 Land Use Code, Article VI, Section 20.08.120 (Special Purposes of the Plaza Retail District):

This section has been updated to clarify that formula retail, big box retail, and outlet malls are prohibited within the Plaza Retail District.

Title 20 Land Use Code, Article VI, Section 20.08.125, (Special Purposes of the Downtown Commercial District):

This section has been updated to clarify that formula retail businesses are prohibited south of North Street, including parcels fronting on North Street, and prohibits big box retail and outlet malls within the Downtown Commercial District. Formula Retail would be a permitted use within the Downtown Commercial District north of North Street.

Title 20 Land Use Code, Article VI, Section 20.08.130 (Special Purposes of the Service Commercial District):

This section has been updated to clarify that formula retail is permitted in Service Commercial District and big box retail and outlet malls are prohibited within the Service Commercial District.

Title 20 Land Use Code, Article VI, Section 20.08.135 (Special Purposes of the Mixed-Use District):

This section has been updated to clarify that formula retail is permitted in the Mixed Use District and big box retail and outlet malls are prohibited within the Mixed-Use District.

Title 20 Land Use Code, Article VI, Section 20.08.145, Table 10 (Permitted and Conditionally Permitted Uses in the PR, CD and CS Districts):

This section is proposed to be amended to include big box retail, formula retail and outlet malls within the use tables. Formula retail will be added as three separate uses to ensure clarity on locational requirements.

Title 20 Land Use Code, Article VI, Section 20.08.155, Table 12 (Permitted and Conditionally Permitted Uses in the Mixed-Use District):

This section is proposed to be amended to include big box retail, formula retail and outlet malls within the use tables.

Title 20, Land Use Code, Article IX, Section 20.28.310, (Definitions):

The definitions section is proposed to be updated to add a definition for formula retail, big box retail and outlet malls. The definition for formula retail will include a more robust definition as well as sub definitions for further clarity. The proposed definitions are as follows:

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Formula Retail. A retail business which is required by contractual or other arrangement or affiliation to maintain a standardized (“formula”) array of services and/or merchandise, menu, employee uniforms, décor, façade design, signage, color scheme, trademark or service mark, name or similar standardized features and which causes it to be substantially identical to 10 or more other retail businesses or restaurants in the United States regardless of ownership or location at the time the businesses license is approved. a. “Array of merchandise or menu” means 50 percent or more of in-stock merchandise or menu items.
b. “Color scheme” means the selection of colors used throughout, such as on the furnishings, wall coverings, or as used on the façade. Standardized lighting is considered part of the color scheme.
c. “Décor” means the style of interior finishes such as the style of furniture, wall coverings, or permanent fixtures.
d. “Façade” means the face of the front of a building or tenant space oriented onto a street or public open space. Awnings are considered part of the façade. e. “Service mark” means a word, phrase, symbol, or design or a combination of words, phrases, symbols or designs that identify and distinguish the source of a service from one party from those of others.
f. “Trademark” means a word, phrase, or design, or a combination of words, phrases, symbols, or designs that identify or distinguish the source of goods of one party from those of others.
g. “Uniform apparel” means standardized items of clothing such as aprons, pants, shirts, dresses, hats and pins, as well as standardized colors of clothing.

Big box retail. Large retail stores that are several times the size of a traditional store in their category that rely on auto-borne customers drawn from a large area and follow a prescribed formula applied to multiple other locations. The stores are typically large, single-story buildings with a multi-story mass and standardized facades, surrounded by parking lots.

Outlet mall. A shopping center comprised primarily of retail establishments that sell a single manufacturer’s product and draw customers from a much larger service area than a typical retail establishment.

Title 20 Land Use Code, Article II, Section 20.20.115 (Formula Business):

This recommended new section includes a purpose, definition, exceptions, approval process, findings for approval and expiration subsections for formula retail businesses. The purpose section will specify the intent of the ordinance to preserve the unique character and communityoriented atmosphere of Healdsburg. The definition section will mirror the definition placed in Section 20.28.310 (Definitions) to ensure consistency amongst sections. Exceptions will be included in this section for businesses currently operating within the specified area, and a conditional use permit process for a business that serves a need that is not represented within the community. The section will include an approval process and findings for approval that will include findings to better regulate the business and ensure compatibility with the community.

Lastly, this section will include a subsection to ensure the conditional use permit shall lapse if the use ceases to operate for a period of six (6) months or more.

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Title 20 Land Use Code, Article V, Section 20.28.165 (Findings):

This section is proposed to be updated to add a specified use for formula retail and the required findings for a conditional use permit.

The alternative draft ordinance (Attachment 2) removes the option of a Conditional Use Permit by making the following revisions to Attachment 1:
• Edits to the title of the ordinance to eliminate reference to Article V (Conditional Use Permits) Section 20.28.165 and Adding Section 20.20.115 to Chapter 20.20 (standards for Specific Land Uses)
• Edits to Section 20.08.145 (Table 10) Permitted and conditionally permitted uses: PR, CD and CS Districts to prohibit Formula Retail south of North Street. • Eliminate of the addition of Title 20, Chapter 20.20, Article II, Section 20.20.115 (Formula Business) to remove the Conditional Use Permit process • Eliminate Title 20, Chapter 20.28, Article V, Section 20.28.165 (B)(4) referencing Conditional Use Permit findings for a Formula Retail Business.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:
• Approve the ordinance as proposed, or with modifications, included as Attachment 1, which includes a CUP process for formula retail businesses within a portion of the Downtown Commercial district.
• Approve the ordinance as proposed, or with modifications, included as Attachment 2, which does not include a CUP process for formula retail businesses. • Direct staff to make further revisions to the proposed ordinance addressing the CUP process and any other issues raised and return to the Planning Commission for review and a recommendation prior to returning to the City Council. • Decline to approve either ordinance and direct staff to continue to implement and enforce the prohibition on formula businesses within the Plaza Retail district, pursuant to the General Plan policies.

FISCAL IMPACT:

The recommended action related to Healdsburg Municipal Code amendments will not result in a direct fiscal impact to the City.

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.

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ATTACHMENT(S):

Formula Retail Ordinance
Alternate - Formula Retail Ordinance

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CITY OF HEALDSBURG
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG AMENDING HEALDSBURG MUNICIPAL CODE TITLE 20 (LAND USE
CODE), CHAPTER 20.08 (BASE ZONING DISTRICTS), ARTICLE VI (COMMERCIAL DISTRICTS), SECTIONS 20.08.115, 20.08.120, 20.08.125,

20.08.130, 20.08.135, 20.08.145 (TABLE 10), 20.08.155 (TABLE 12), CHAPTER 20.28 (ADMINISTRATION), ARTICLE IX (DEFINITIONS), SECTION 20.28.310, ARTICLE V (CONDITIONAL USE PERMITS), SECTION

20.28.165 AND ADDING SECTION 20.20.115 TO CHAPTER 20.20 (STANDARDS FOR SPECIFIC LAND USES), ARTICLE II (COMMERCIALRELATED REGULATIONS) REGARDING FORMULA BUSINESSES

DOWNTOWN AND PROHIBITING BIG BOX RETAIL AND OUTLET MALLS

THROUGHOUT THE CITY
WHEREAS, the City of Healdsburg Municipal Code (HMC) Chapter 20 Land Use Code (LUC) regulates allowable uses and development standards within the City; and WHEREAS, HMC amendments (“Amendments”) are proposed to provide greater clarity and additions to Title 20, Land Use Code; and
WHEREAS, the 2030 General Plan defines Big box retail, Formula businesses, and Outlet malls. It also includes policies and implementation measures related to formula businesses. The proposed Amendments are consistent with the definitions in the General Plan; and WHEREAS, the General Plan prohibits formula businesses on properties around the historic Plaza in order preserve its character of small, unique businesses; and WHEREAS, General Plan Policy LU-16(b.) requires a Land Use Code Amendment to prohibit Big box retail businesses and Outlet malls throughout the City; and WHEREAS, the proposed amendments will help clarify and define formula business locations around the Plaza, and prohibit Big box retail and Outlet malls throughout the City; and WHEREAS, on August 19, 2024, the City Council discussed formula businesses within the City and directed staff to research and provide policy options at a future meeting date; and WHEREAS, on December 2, 2024, the City Council discussed formula businesses and provided direction to staff to prepare an Ordinance regulating formula businesses in the PR and CD zoning designations up to North Street (regulations to apply to both sides of North Street, and terminate further North) and prohibit Big box retail and Outlet malls throughout the City; and

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Packet Pg. 178 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) WHEREAS, the Planning Commission held a duly noticed public hearing on January 28, 2025, at which time it reviewed the proposed Amendments and considered all public comments, written and oral, on the revisions and the related CEQA exemption; and WHEREAS, the Planning Commission made the following findings pursuant to HMC Section 20.28.280 in support of the proposed Amendments:

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 the Land Use Code contained in Section 20.04.010 given that: 1) 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 2) the Amendments will implement the goals, policies, and programs related to formula businesses and the prohibition of Big box retail and Outlet malls contained in the Healdsburg 2030 General Plan.

C. The Planning Commission conducted a public hearing on the draft Amendments with hearing notices provided as prescribed in Land Use Code Section 20.28.080, including newspaper publication at least 20 days prior to the hearing date, including to all owners of property within the Plaza Retail and Downtown Commercial zone up to North Street.

D. The Healdsburg 2030 General Plan EIR evaluated the environmental impacts of implementing the General Plan, including policies related to land use and economic development. Since the proposed Land Use Code amendments are designed to enforce existing General Plan policies, said amendments are within the scope of the analysis conducted in the General Plan EIR pursuant to CEQA Guidelines Section 15162.

WHEREAS, based upon the Planning Commission’s findings and recommendation, the City Council finds that the Amendments are consistent with the General Plan including the Goals, Policies, and Implementation Measures of the 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
The above recitals are declared to be true and correct findings of the City Council of the City of Healdsburg.

Section 2. Title 20, Chapter 20.08, Article VI, Section 20.08.115 (Purposes) shall be amended to read as follows (additions underlined, deletions strikethrough):

In addition to the objectives prescribed in Section 20.04.010, commercial districts are included in the Land Use Code to achieve the following purposes:

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Packet Pg. 179 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) A. Provide appropriately located areas for retail stores, offices, service establishments, amusement establishments and wholesale businesses, offering commodities and services required by residents of the city and its surrounding market area.

B. Provide opportunities for retail stores, offices, service establishments, and wholesale businesses to concentrate for the convenience of the public and in mutually beneficial relationship to one another.

C. Provide space for community facilities and institutions that appropriately may be located in commercial areas.

D. Provide adequate space to meet the needs of modern commercial development, including off-street parking and truck loading areas.

E. Minimize traffic congestion and avoid the overloading of utilities by preventing the construction of buildings of excessive size in relation to the amount of land around them.

F. Protect commercial properties from noise, odor, dust, dirt, smoke, vibration, heat, glare, heavy truck traffic, and other objectionable influences incidental to adjacent industrial areas.

G. Provide appropriate development standards within commercial zoning districts to protect adjacent residential neighborhoods.

H. Promote development outside of the downtown that complements, but does not compete with, the downtown’s role as the City’s commercial core. The City’s commercial core is intended to encourage retail elements that promote a variety of retail businesses while maintaining the City’s small-town atmosphere.

I. Prohibit Big box and Outlet malls throughout the City.

Section 3. Title 20, Chapter 20.08, Article VI, Section 20.08.120, Special purposes of Plaza Retail (PR) District shall be amended as follows (additions underlined, deletions strikethrough):

The following special purposes are intended to be achieved through the adoption and implementation of the PR District.

A. Encourage ground floor retail uses and second floor commercial and office uses which are compatible with pedestrian oriented shopping.

B. Promote small-scale, distinctive businesses uses that are harmonious with the special character of the Plaza, which are small scale in nature, are visually interesting to pedestrians and which would may not function effectively in another commercial district.

C. Promote special architectural and streetscape design elements that blend with other existing plaza design elements.

D. Prohibit formula retail uses within the PR district.

E. Prohibit Big box retail and Outlet malls within the PR district.

Section 4 . Title 20, Chapter 20.08, Article VI, Section 20.08.125, Special purposes of Downtown Commercial (CD) District shall be amended as follows (additions underlined, deletions strikethrough):

20.08.125Special purposes of Downtown Commercial (CD) District The following special purposes are intended to be achieved through the adoption and implementation of the CD District:

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Packet Pg. 180 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) A. Maximize the efficiency of the city’s retail district by limiting or prohibiting uses that break the continuity of commercial frontage or are incompatible with an attractive pedestrian shopping area.

B. Facilitate the establishment of assessment districts for provisions of off-street parking facilities by limiting or prohibiting drive-in type uses that would not benefit substantially from public offstreet parking facilities.

C. Foster use of vacant buildings by permitting certain conditional uses.

D. Prohibit Formula Retail uses south of North Street, including on parcels with frontage on North Street.

E. Prohibit Big box retail and Outlet malls within the CD district.

Section 5. Title 20, Chapter 20.08, Article VI, Section 20.08.130, Special purposes of the Service Commercial (CS) district shall be amended as follows (additions underlined, deletions strikethrough):

The following special purposes are intended to be achieved through the adoption and implementation of the CS District:

A. Provide appropriately located areas for service-oriented commercial uses that transition between residential and other commercial and industrial districts.

B. Permit additional compatible development in existing mixed commercial areas containing both retail stores and commercial services.

C. Foster use of vacant buildings by permitting certain light industries as conditional uses.

D. Prohibit formula retail uses within the PR district.

E. Prohibit Big box retail and Outlet malls within the CS district.

Section 6. Title 20, Chapter 20.08, Article VI, Section 20.08.135, Special purposes of the Mixed Use (MU) district shall be amended as follows (additions underlined, deletions strikethrough):

20.08.135Special purposes of Mixed Use (MU) District
The following special purposes are intended to be achieved through the MU District:

A. Implement the Mixed Use land use designation of the Healdsburg General Plan.

B. Allow a range of commercial uses and limited food and beverage production that serve the dayto-day needs of residents, while providing uses and activities of interest to visitors to the community.

C. Incorporate residential uses with commercial uses in appropriate locations.

D. Ensure that mixed-use projects include a commercial component that is adequate in terms of functionality and providing a commercial appearance.

E. Formula Retail is a permitted use within the MU zoning district.

F. Prohibit Big box retail and Outlet malls within the MU zoning district.

Section 7. Title 20, Chapter 20.08, Article VI, Section 20.08.145, Table 10, Permitted and conditionally permitted uses in the PR, CD and CS Districts shall be amended as follows (additions underlined, deletions strikethrough):

20.08.145 Permitted and conditionally permitted uses: PR, CD, and CS Districts The following permitted and conditionally permitted uses may be allowed in the PR, CD and CS Districts. Chapter 20.28 HMC, Article V describes the procedures for obtaining a conditional use permit.

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Packet Pg. 181 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Table 10 Permitted and conditionally permitted uses: PR, CD and CS Districts Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Specific Use Regulations
Residential Uses
Accessory dwelling unit P P P HMC 20.20.010
Day care, general -- C C
Day care, limited -- P P
Homeless shelters -- -- P
Multifamily dwellings located on the same site as a commercial use – above ground floor C P P
Multifamily dwellings located on the same site as a commercial use – any floor -- P P Residential care, general -- C C
Residential care, limited -- P P
Single-room occupancy dwellings located on the same site as a commercial use – above ground floor C P P
Single-room occupancy dwellings located on the same site as a commercial use – any floor -- P P
Supportive housing P P P
Transitional housing P P P
Vacation rental -- C --
Retail Trade and Services
Ambulance service -- -- P
Antique car display and sales -- C P
Antique sales – above ground floor P P C
Antique sales – ground floor C P C
Art galleries and picture framing with art sales P P P
Arts and crafts schools -- P P
Arts, crafts and hobby stores, including instructional classes as an accessory use P P P Automobile rentals -- -- P
Automobile washing (self-service) -- -- P
Automotive repair -- -- C
Automotive sales and service, new and used, with auto service -- -- P Automotive service stations, including smog testing, minor repair (tune-ups and brake repair only), towing services, vehicle storage and mini-markets -- -- C Automotive supply stores -- P P
Automotive upholstery shops -- -- C
Bakeries, retail P P P

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Packet Pg. 182 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Specific Use Regulations
Banks, savings and loans, thrift and loans, credit unions, including automated teller machines and drive-through facilities -- C C
Banks, savings and loans, thrift and loans, credit unions, including automated teller machines (no drive-through) C P P
Barber shops/beauty shops – above ground floor P P P
Barber shops/beauty shops – ground floor -- P P
Bars and cocktail lounges C C C HMC 20.20.075
Beer and wine sales (off-premises consumption), ancillary to mini-market retail sales contained within a service station -- -- C HMC 20.20.075 Bicycle sales and repair shops, including rentals -- P P Big box retail -- -- -- See definition
Blueprint and photo reproduction shops -- P P
Boat sales and service -- -- P
Bookstores and newsstands – above ground floor P P P
Bookstores and newsstands – ground floor C P P
Bowling alleys -- -- P
Building material sales -- -- C
Bus depots C C C
Cabinet shops -- -- C
Cannabis storefront retailer (dispensary) -- P P HMC 20.20.095 Cannabis microbusiness (without cultivation) -- P P HMC 20.20.095 Card and stationers’ stores P P P
Carnivals and circuses, temporary -- -- C
Catering shops (food to go only) -- P P
Christmas tree sales lots, temporary P P P
Clothing and shoe establishments, including clothing sales (new merchandise only), tailor shops, and dressmaking establishments P P P
Computer retail sales -- P --
Consignment sales with incidental sales of used goods and clothing -- P P Contractors’ equipment rental yards and equipment rental yards -- -- C Contractors’ shops with no outdoor storage of heavy equipment -- -- P Delicatessens and gourmet food sales with incidental catering P P C Dental labs -- P P
Department stores -- P P
Dry cleaners and laundries -- P P
Electronic games centers (4 or more games) -- C C

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Packet Pg. 183 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Specific Use Regulations
Fabric shops P P P
Farmers markets C C C
Firearm dealers -- -- C HMC 20.20.105
Floor covering and drapery sales -- C P
Florists, including outdoor sales P P P
Food and cold storage lockers -- C P
Food stores over 3,500 square feet in retail sales -- P P Food stores up to 3,500 square feet in retail sales C P P Formula Retail -- -- P *see definition
Formula Retail (North of North Street, not including parcels with frontage on North Street)
-- P P *see definition
Formula Retail (South of North Street, including parcels with frontage on North Street)
-- C P HMC 20.20.115
Furniture repair -- P P
Furniture stores, retail P P P
Gift shops P P P
Glass shops (glaziers) -- -- P
Hardware, paint and wallpaper stores, with no firearm sales -- P P Hardware, paint and wallpaper stores with firearm sales -- -- C HMC 20.20.105 Health clubs, gymnasiums and dance studios -- C P
Home electronics and household appliance stores, including television, stereo, radio, telephone, computer and related sales (includes repair and installation services) -- P P Hotels, extended stay hotels and motels C C -- HMC 20.20.090 Ice cream parlors, soda fountains and candy stores P P P Interior furnishing and accessory shops P P P
Jewelry sales and repair, including watch and clock repair P P P Kennels -- -- C
Kitchenware shops P P P
Laboratories -- C P
Laundries – self-service -- P P
Linen supply services -- -- P
Liquor, beer and wine sales – off-premises consumption C C C HMC 20.20.075 Live-work facilities -- P P
Locksmiths -- P P
Machinery sales, service, rental -- -- P

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Packet Pg. 184 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Specific Use Regulations
Manufacturing/processing – light; provided, that all of the conditions prescribed by Chapter 20.24 HMC, Article I, are met, and that no motor power other than electrically operated motors shall be used. The horsepower of any single motor shall not exceed five horsepower and the total horsepower of all such motors on the site shall not exceed 25 total horsepower. This does not include air conditioning equipment.
-- C C
Massage establishments – above ground floor P P P
Massage establishments – any floor -- P P
Medical and dental clinics -- -- P
Mortuaries -- C C
Motorcycle sales and service -- C P
Music and dance entertainment clubs -- P C
Musical instrument sales, repair and lessons; and recorded music sales – above ground floor P P P
Musical instrument sales, repair and lessons; and recorded music sales – ground floor C P P
Nightclubs C C C HMC 20.20.075
Nurseries and garden supply stores -- C P
Office equipment sales and service -- P P
Offices – professional, administrative and business, including chiropractor, insurance, real estate and financial offices, but excluding medical and dental offices – any floor
-- P P
Offices – professional, administrative and business, including chiropractor, insurance, real estate and financial offices, but excluding medical and dental offices – above ground floor

P -- --
Offices – psychologist, psychiatrist, counseling and therapy -- P P Optician and optometrist shops -- P P
Outdoor vendors on private property C C --
Outlet mall -- -- -- *See definition
Parking lots and parking garages C P P
Patio and garden furniture and accessories shops -- P P Pet shops, including pet grooming -- P P
Pharmacies and drugstores C P P
Photography shops, studios and photo supply stores C P P Picture framing shops -- P P
Plumbing supply shops -- C P
Pool and billiards halls -- C P
Pool and spa sales and service -- -- P
Post office and private mail services -- C P
Pottery and woodworking shops -- -- P

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Packet Pg. 185 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Specific Use Regulations
Printing, lithography and engraving -- C P
Public information centers – indoor P P P
Public utility installations, including public service pumping stations, power stations and substations, equipment buildings and installations -- C C Radio and television broadcast and recording studios -- C C Radio, television and stereo sales and service -- P P
Recreational equipment rental -- -- P
Recreational vehicle sales, services, repair and storage -- -- P Residential visitor lodging -- C C
Restaurants, cafes and eating establishments, indoor and outdoor eating, including sale of alcoholic beverages as an ancillary use and indoor music with no sound amplification. Amplified sound requires a conditional use permit.

P P P
Restaurants, drive-in, walk-up and drive-through -- -- C Retail warehouses over 6,000 square feet of floor area -- -- C Retail warehouses under 6,000 square feet of floor area -- -- P Secondhand stores and pawn shops -- C C
Shoe repair -- P --
Sign painting -- C P
Skating rinks (within building) -- -- P
Spa, day
• Above ground floor C P P
• Ground floor -- P P
Spa, overnight P P --
Sporting goods sales, with rental as an accessory use, with no firearm sales -- P P Sporting goods sales, with rental as an accessory use, with firearm sales -- -- C HMC 20.20.105 Supermarkets (over 3,500 square feet of retail sales area) -- P P Tasting room C C -- HMC 20.20.075
Theaters and auditoriums C C C
Tire sales, not including tire recapping -- -- P
Tobacco and pipe shops P P P
Toy stores P P --
Travel agencies – above ground floor P P P
Travel agencies – ground floor C P P
Upholstery shops -- C C
Vacation timeshares -- -- --

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Packet Pg. 186 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Specific Use Regulations
Variety stores and dry goods -- P P
Vending machine service -- -- P
Veterinarian offices and small animal hospitals -- -- C Recreation, Education and Public Assembly
Churches and other religious institutions -- C C
Private clubs, fraternal lodges and meeting halls C C C Private museums P C --
Accessory Uses
Accessory structures and uses located on the same site as a permitted or conditional use
P P P
-- = not permitted
Section 8. Title 20, Chapter 20.08, Article VI, Section 20.08.155, Table 12, Permitted and conditionally permitted uses in the MU District shall be amended as follows (additions underlined, deletions strikethrough):

Table 12 Permitted (P) and conditionally permitted (C) uses: MU District Table 12 identifies the permitted and conditionally permitted uses for the Mixed Use District. This table to be used in conjunction with the definitions contained in Chapter 20.28, Article IX. Refer also to the specific use regulations as noted. Chapter 20.28, Article V describes the procedures for obtaining a conditional use permit.

Table 12, Permitted and conditional uses: MU District
Permitted (P) and Conditionally Permitted (C) Uses Specific Use Regulations Residential Uses
Accessory dwelling unit and junior
accessory dwelling unit P
HMC 20.20.010
Employee housing for six or fewer
employees in accordance with Cal.

Health & Safety Code § 17000 et seq.

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Packet Pg. 187 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Permitted (P) and Conditionally Permitted (C) Uses Specific Use Regulations Vacation rental homes --
Retail Trade
Alcoholic beverages (off-sale) C HMC 20.20.075
Artisan shop P
Big box retail -- See definition
Cannabis storefront retailer (dispensary) P HMC 20.20.095 Cannabis microbusiness (without
cultivation) P
HMC 20.20.095
Convenience store
• Beer and wine sales (off-sale), ancillary
C
C HMC 20.20.075
Formula Retail P *see definition
Grocery and specialty food sales
• 3,500 square feet or less
• More than 3,500 square feet
P
C
Outdoor display and sales P Ch. 20.16 HMC, Art. V
Outlet mall --
Retail, general
• Extended hours
• Secondhand goods
P
C
C
Sporting goods sales, with rental as an
accessory use, with firearm sales C
HMC 20.20.105
Services
Bank, financial services P
Business support services P
Catering P
Fitness center (5,000 square feet or less) P
Instructional services C
Medical services, minor C
Personal services P
Recycling, small collection facility C
Specialty transportation rental, touring
services C
Storage – indoor C
Tasting room C HMC 20.20.075
Vehicle services – service station
• Beer and wine sales (off-sale), ancillary
C
C
HMC 20.20.065
HMC 20.20.075
Visitor lodging C
Eating and Drinking Establishments, Entertainment
Bar, nightclub C HMC 20.20.075

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Packet Pg. 188 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Permitted (P) and Conditionally Permitted (C) Uses Specific Use Regulations Restaurant
• Amplified music audible from outside
the building
• Extended hours
P
C
C
HMC 20.16.080
Food and Beverage Production
Food and beverage production – limited C
Utilities
Public utility facility P
Telecommunication facility – minor P HMC 20.20.080
Telecommunication facility – major C HMC 20.20.080
Accessory Uses
Accessory uses customarily associated
with or essential to a permitted or
conditionally permitted use, and operated
incidental to the principal use
P
Drive-through service C
Section 9. Title 20, Chapter 20.28, Article IX, Section 20.28.310, Definitions shall be amended to include the following defined terms (additions underlined, deletions strikethrough):

Formula Retail. A retail business which is required by contractual or other arrangement or affiliation to maintain a standardized (“formula”) array of services and/or merchandise, menu, employee uniforms, décor, façade design, signage, color scheme, trademark or service mark, name or similar standardized features and which causes it to be substantially similar to 10 or more other retail businesses or restaurants in the United States regardless of ownership or location at the time the businesses license is approved.
a. “Array of merchandise or menu” means 50 percent or more of in-stock merchandise or menu items.
b. “Color scheme” means the selection of colors used throughout, such as on the furnishings, wall coverings, or as used on the façade. Standardized lighting is considered part of the color scheme.
c. “Décor” means the style of interior finishes such as the style of furniture, wall coverings, or permanent fixtures.
d. “Façade” means the face of the front of a building or tenant space oriented onto a street or public open space. Awnings are considered part of the façade. e. “Service mark” means a word, phrase, symbol, or design or a combination of words, phrases, symbols or designs that identify and distinguish the source of a service from one party from those of others.
f. “Trademark” means a word, phrase, or design, or a combination of words, phrases, symbols, or designs that identify or distinguish the source of goods of one party from those of others.

7.B.a
Packet Pg. 189 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) g. “Uniform apparel” means standardized items of clothing such as aprons, pants, shirts, dresses, hats and pins, as well as standardized colors of clothing.

Big box retail. Large retail stores that are several times the size of a traditional store in their category, rely on auto-borne customers drawn from a large area and follow a prescribed formula applied to multiple other locations. The stores are typically large, single-story buildings with a multi-story mass and standardized facades, surrounded by parking lots.

Section 10. Title 20, Chapter 20.20, Article II, shall be amended to add a new Section

20.20.115, Formula Business to read as follows (additions underlined, deletions strikethrough):

A. Purpose. To preserve the unique character, economic diversity and community-oriented atmosphere of the City of Healdsburg, while accommodating commercial growth. This Section establishes the procedures for the granting of a conditional use permit for Formula Retail businesses that fill a need not currently provided for within the community. A conditional use permit may allow for a Formula Retail business to operate within the Downtown Commercial (CD) zoning district.

B. Definition. Formula Retail. Refer to Section 20.28.310.

C. Primary Use. A use permit issued pursuant to this Section shall be for a use that is already permitted or conditionally permitted in the District for which the use permit is sought (“Primary Use”)
D. Application.
a. This Section does not apply to any business that has received a business license prior to the adoption of this Ordinance.
b. The following requirements shall apply to all applications for a conditional use permit to establish a Formula Retail business in the CD District.

E. Nonconforming Uses. Any Formula Retail business in the CD District as of the adoption of this Ordinance shall be nonconforming and subject to the provisions of Chapter 20.28, Article I (Nonconforming Uses and Structures).

F. Approval Process. Conditional Use Permits are subject to review and approval by the Planning Commission after a public hearing.

G. Conditional Use Permit Findings. In addition to the findings required pursuant to HMC

20.28.165(A), the Planning Commission shall make the following findings in granting a conditional use permit for a Formula Retail use:
a. The proposed formula retail use is compatible with the purposes of the PR and CD Districts

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Packet Pg. 190 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) b. The proposed Formula Retail business will not detrimentally affect the health, safety or welfare of the community.
c. The formula retail business serves an immediate need that is not currently met in the community. The business will fill a gap in the market or provide a product not offered by existing downtown businesses.
d. The formula retail business will not disrupt the historic character or cultural qualities of downtown.
e. The formula retail business will not adversely affect the economic vitality of existing local businesses.
f. The design and signage will comply with the Citywide Design Guidelines and remain consistent with other signage in the immediate area.

Any necessary storefront modifications have been made to reflect the downtown character, remain consistent with the Citywide Design Guidelines, and avoid a standardized appearance.
g. The primary use is a permitted use or conditionally permitted use within the PR or CD District. If a conditionally permitted use, the Planning Commission is able to make the findings required for that conditionally permitted use.

H. Notwithstanding Section 20.28.205 use permits issued pursuant to this Section shall lapse if the use for which the permit was issued ceases to operate for a period of six (6) months or more.

Section 11. Title 20, Chapter 20.28, Article V, Section 20.28.165, subsection B., shall be amended to read as follows (additions underlined, deletions strikethrough):

B. In addition to the findings required by subsection (A) of this section, findings shall be made by the planning commission prior to granting a conditional use permit for any of the uses specified below:

1. Residential Visitor Lodging Operations. The findings required by HMC 20.20.060(C) shall also be made for conditional use permit applications for residential visitor lodging operations.

2. Adult Businesses. The proposed adult business complies with all locational, development and performance standards contained in HMC 20.20.085.

3. Workforce Housing and Single Room Occupancy Buildings in the Industrial District. a. The construction of proposed housing unit(s) will provide workforce housing for the owners and/or employees of the industrial use(s) proposed for the site. b. The design of the proposed housing unit(s) will be compatible with both onsite and adjacent or surrounding industrial uses, in terms of noise, light and glare impacts.
c. Adequate water, sewer and drainage facilities exist to serve both proposed industrial and residential uses.

4. Formula Retail Businesses. The findings required by HMC 20.20.115 shall also be made for conditional use permit applications for formula retail businesses.

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Packet Pg. 191 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance) Section 12. Environmental Compliance.

The Healdsburg 2030 General Plan EIR evaluated the environmental impacts of implementing the General Plan, including policies related to land use and economic development. Since the proposed Land Use Code amendments are designed to enforce existing General Plan policies, said amendments are within the scope of the analysis conducted in the General Plan EIR pursuant to CEQA Guidelines Section 15162.

Section 13. 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.

Section 14. Effective Date and Publication.

This Ordinance of the City of Healdsburg shall be effective thirty (30) days after the date of its passage. Within 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.

INTRODUCED by the City Council of the City of Healdsburg on the 3rd day of March, 2025, and PASSED and APPROVED at a regular meeting of the City Council on the ____ day of ____, 2025, by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ____________________________________ Evelyn L. Mitchell, Mayor Raina Allan, City Clerk
Dated: ______________________________

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Packet Pg. 192 Attachment: Formula Retail Ordinance (4759 : Formula Retail Ordinance)

Page 1 of 14 ends

CITY OF HEALDSBURG
ORDINANCE NO. ____

20.08.130, 20.08.135, 20.08.145 (TABLE 10), 20.08.155 (TABLE 12), CHAPTER 20.28 (ADMINISTRATION), ARTICLE IX (DEFINITIONS), SECTION 20.28.310, ARTICLE II (COMMERCIAL-RELATED

REGULATIONS) REGARDING FORMULA BUSINESSES DOWNTOWN

AND PROHIBITING BIG BOX RETAIL AND OUTLET MALLS

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WHEREAS, the Planning Commission made the following findings pursuant to HMC Section 20.28.280 in support of the proposed Amendments:

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

Section 1. Findings
The above recitals are declared to be true and correct findings of the City Council of the City of Healdsburg.

Section 2. Title 20, Chapter 20.08, Article VI, Section 20.08.115 (Purposes) shall be amended to read as follows (additions underlined, deletions strikethrough):

In addition to the objectives prescribed in Section 20.04.010, commercial districts are included in the Land Use Code to achieve the following purposes:

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A. Provide appropriately located areas for retail stores, offices, service establishments, amusement establishments and wholesale businesses, offering commodities and services required by residents of the city and its surrounding market area.

C. Provide space for community facilities and institutions that appropriately may be located in commercial areas.

D. Provide adequate space to meet the needs of modern commercial development, including off-street parking and truck loading areas.

E. Minimize traffic congestion and avoid the overloading of utilities by preventing the construction of buildings of excessive size in relation to the amount of land around them.

F. Protect commercial properties from noise, odor, dust, dirt, smoke, vibration, heat, glare, heavy truck traffic, and other objectionable influences incidental to adjacent industrial areas.

G. Provide appropriate development standards within commercial zoning districts to protect adjacent residential neighborhoods.

I. Prohibit Big box and Outlet malls throughout the City.

Section 3. Title 20, Chapter 20.08, Article VI, Section 20.08.120, Special purposes of Plaza Retail (PR) District shall be amended as follows (additions underlined, deletions strikethrough):

The following special purposes are intended to be achieved through the adoption and implementation of the PR District.

A. Encourage ground floor retail uses and second floor commercial and office uses which are compatible with pedestrian oriented shopping.

C. Promote special architectural and streetscape design elements that blend with other existing plaza design elements.

D. Prohibit formula retail uses within the PR district.

E. Prohibit Big box retail and Outlet malls within the PR district.

Section 4 . Title 20, Chapter 20.08, Article VI, Section 20.08.125, Special purposes of Downtown Commercial (CD) District shall be amended as follows (additions underlined, deletions strikethrough):

20.08.125Special purposes of Downtown Commercial (CD) District

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The following special purposes are intended to be achieved through the adoption and implementation of the CD District:

A. Maximize the efficiency of the city’s retail district by limiting or prohibiting uses that break the continuity of commercial frontage or are incompatible with an attractive pedestrian shopping area.

C. Foster use of vacant buildings by permitting certain conditional uses.

D. Prohibit Formula Retail uses south of North Street, including parcels with frontage on North Street.