Healdsburg City Council
Meeting
February 17, 2026
City Manager’s Report
City Council, February 17, 2026
Public Comment
on Non Agenda
Items
---
Comentarios del
público sobre
puntos no
incluidos en la
agenda de la
reunión
3 State Housing Legislation LUC Updates
SB 9 and SB 684/1123
City Council
February 17, 2026
Recommended
Action
5 It is recommended that the City Council:
1. Adopt an Ordinance amending Healdsburg Municipal Code Title 20, Section 20.20.125: SB 9 Housing Development.
2. Adopt an ordinance amending Healdsburg Municipal Code Section
20.20.040 in its entirety (small lot subdivisions) to implement Senate Bills 684 and 1123 and making other conforming changes.
Background
• Housing Element adopted on May 1, 2023, and certified by the State on June 29, 2023.
• September 23, 2025, Planning Commission Workshop to review draft Ordinances for SB 9, SB 684 & 1123, Accessory Dwelling Units (ADU), and Density Bonuses (DB).
• October 28, 2025, the Planning Commission reviewed and considered LUC amendments related to ADU and DB and recommended that the City Council adopt both ordinances.
• November 11, 2025, the City Council reviewed and adopted ordinances for ADUs and DB.
• January 27, 2026, the Planning Commission adopted a resolution recommending that the City Council adopt ordinances implementing SB9 and SB684/SB1123.
6 Senate Bill 9
Ordinance
• Effective January 1, 2022
• Ministerial Approval: Approve qualifying projects without public hearings or discretionary review (60-day timeline). • Two-Unit Developments: Up to 2 homes allowed on a
single-family lot.
• Lot Splits: One lot can be split into 2, each with up to 2 units (total 4).
• Lot Size: Lots must be split roughly in half with the smaller lot at least 40% of the original lot size and each new lot at least 1,200 sqft in size.
• Unit Size: Must allow each primary unit to be at least 800 sqft in size. Added a maximum of unit size of 1,750 sqft,
consistent with SB684/1123.
7 Senate Bill 9
Ordinance
• Setback Requirements: Four-foot side and rear yard setbacks for new construction.
• Parking: One space per unit; none required if within ½ mile of a major transit stop (e.g. SMART rail station).
• Owner-Occupancy Requirement: For lot splits, owner must live in one unit for at least 3 years.
• Exemptions and Protections: The ordinance includes
safeguards to prevent the displacement of existing tenants and excludes properties with environmental constraints such as flood zones, steep hillsides, and very high severity fire zones. • Objective Design Standards: Cities can adopt clear
measurable criteria that align with standards for single family homes within residential zones. (i.e. ODS can not be more restrictive than what is allowed within the zoning ordinance) 8 Senate Bill 9
Ordinance –
Response to
Policy Options
• Unit Size: Max 1,750 sqft consistent with SB 684/1123 • Front Setback: Front setback is proposed to be that of the zoning district in which the project is located.
• Privacy: SB450 prohibits cities from assigning objective zoning standards that do not apply to the underlying zoning, therefore recommended privacy requirement matching ADU
ordinance was struck.
• Parking: One space per unit; none required if within ½ mile of a major transit stop (e.g. SMART rail station).
• Objective Design Standards: SB450 prohibits cities from assigning objective zoning standards that do not apply to the underlying zoning.
9 Senate Bill
684/1123
Ordinance
• Effective July 1, 2024, and July 1, 2025.
• Ministerial Approval: Approve or deny an SB 684/1123
project within 60 days.
• Eligible Projects:
• Developments of 10 or fewer residential units on urban lots under 5 acres zoned for multi-family residential (SB 684). • Development of 10 or fewer residential units on vacant lots under 1.5 acres zoned for single-family residential (SB 1123). • Unit Size: Max unit size of 1,750 net habitable square feet. • Side & Rear Setbacks: Four-foot side and rear setbacks. • Objective Design Standards: SB450 prohibits cities from assigning objective zoning standards that do not apply to the underlying zoning.
10 Senate Bill
684/1123
Ordinance
• Parking: One space per unit; none required if within ½ mile of a major transit stop (e.g. SMART rail station).
• Environmental Standards: Site cannot be located on prime farmland, wetlands, within a very high fire hazard severity zone, a special flood hazard area, or delineated earthquake fault zone.
• Lot and Parcel Size Regulations: Newly created lots must be at least 600 square feet for multi-family and 1,200 square feet for single-family.
11 Senate Bill
684/1123
Ordinance
Response to
Policy Options
• Prohibition of Accessory Dwelling Units and Junior
Accessory Dwelling Units: Planning Commission requested that ADU’s and JADU’s be allowed on lots of 5,000 square feet or more.
• Parking: One space per unit; none required if within ½ mile of a major transit stop (e.g. SMART rail station).
• Objective Design Standards: SB450 prohibits cities from assigning objective zoning standards that do not apply to the underlying zoning.
12 Growth
Management
Ordinance
Ministerial approval requirement creates a conflict in applying the GMO permit cap. For example, if the City
reached its building permit cap within any given cycle under the GMO and received an application for a project that meets all the requirements of this legislation, denial would likely violate State Law.
Staff recommend including GMO exemption within the City’s SB 9 and SB 684/1123 ordinances to ensure consistent
application of State housing law and the GMO.
HCD provided a response supporting removing barriers and streamlining pathways to housing but would not provide a definitive answer if GMO applies to these projects.
13 AB 1033
On November 11, 2025 the City Council asked staff to look into AB1033 and SB10.
AB1033 – allows for the separate sale of ADU’s
Requires adoption of a local ordinance.
Complex and resource intensive process for property
owners.
Requires parcel/condominium map.
Establish easements for access and utilities.
Install separate utility connections.
Establish a Homeowners’ Association (HOA)
Record Conditions, Covenants, and Restrictions
(CC&R’s).
Secure lender approval.
No inquiries/requests to date.
14 SB 10
SB 10 – voluntary adoption permitting up to 10 residential units on qualified parcels.
Transit-rich or urban infill sites.
Requires City-initiated rezoning to identify qualified parcels.
Mapping, technical initiatives, public outreach,
workshops, and public hearings.
Ordinance exempt from CEQA, projects may not be.
SB9, SB 684 and SB 1123 all promote missing middle
housing.
Station Area Specific Plan process.
15 Timeline
Schedule for adoption of SB 9 and SB 684 / SB 1123 ordinances:
• Resolution adopted by Planning Commission on January 27th • City Council 1st Reading February 17th
• City Council 2nd Reading March 2nd (tentative)
Recommended
Action
It is recommended that the City Council:
1. Conduct a public hearing and, by motion, introduce for first reading, by title only waiving full reading of the text, an ordinance amending Healdsburg Municipal Code Title 20,
Section 20.20.125: SB 9 Housing Development.
2. Conduct a public hearing and, by motion, introduce for first reading, by title only waiving full reading of the text, an ordinance amending Healdsburg Municipal Code Section
20.20.040 in its entirety (small lot subdivisions) to implement Senate Bills 684 and 1123 and making other conforming
changes.
17 Questions
Public
Comment
Comentarios
del público
L&M Quarterly
Update
February 17,2026
Overview
• Highlights
• Point-In-Time Homeless Count
• Program Outcomes
• Supportive Services Offered
• Financial Status
• Conclusion & Future Activities
21 Highlights
● Program Outcomes
• Interim-Housing Units for Northern Sonoma County residents remains at 46.
• Keep People Housed helped over 42 households were assisted in 2025 totaling $111,500 in assistance
• Point-in-Time Count – January 2026 preliminary information • Focus shifting to functional zero for chronically homeless • Inflow/outflow thresholds for overall functional zero ● Staffing Updates
• Housing Navigator/Property Manager left for a career in mental health.
• Hired from within but will need a Case Manager to backfill. • Russian River Keepers are continuing to keep the river clean and free of unauthorized access.
Program
Outcomes
Data Point Since Last Report L&M Village Totals
Since Program Start
Participants Served 13 121
Successful Exits to Housing 6 62
Housing Voucher Applications 0 31
Health & Wellness -
Accessed Mental Health
4 90
Health & Wellness -
Accessed Medical
Services/Appointments
17 121
Income Progress -
Income Increase by Employment 20 85
Income Progress -
Income Increase by Utilizing
Subsidies (Food Stamps/SSI)
11 116
Occupancy By
Race/Ethnicity
74%
19%
5% 2%
Occupancy By Race &
Ethnicity
L&M Village
White Hispanic Native Black
73%
14%
3%
2% 8%
Race & Ethnicity of Those
Experiencing Homelessness
Healdsburg
White Hispanic Native Black Unknown
Supportive
Services
Offered
● Nearly 80% of participants engaged in at
least 2 activities/week
● One-on-one counseling sessions
● Food pantry access
● Budgeting and cooking classes
● Employment search support
● Haircut services
● Interview clothing assistance
● Daily living skills training
● Housing search and application classes
● Weekly healthcare visits by Providence
Healthcare
● Active participation in Fentanyl awareness
events
● Collaboration with Face to Face for HIV testing
● Addiction recovery group on-site
Homekey
Funding
Funding Sources Amount Status Use
Homekey Capital $6,168,000 Awarded Acquisition/Construction Homekey Operations $660,800 Awarded L&M Operations
County Capital Match $950,000 Awarded Acquisition/Construction Early Occupancy Bonus $220,000 Awarded Operations
County Operating $1,263,570 Awarded Operations FY 23-24 & FY 24-25
Total
Measure O Pathways to
Sustainability
BOS Consideration Scheduled for
2/10/26
$9,262,370
$900,000 Operations
Conclusion
&
Future
Activities
Challenges
●Additional Interim-Housing Units
●Permanent Supportive Housing Units
●Unrestricted funding/Multi-Year Contracts
Opportunities
●Employment connections
●Dry Creek Commons set-asides
●Heritage Park in Windsor
●Measure O Pathways
Discussion
&
Questions
Public
Comment
Comentarios
del público
Mid-Year Financial
Update FY 2025-2026
Finance Department
February 17, 2026
Proposed
Action
Receive a presentation on the Mid-Year Financial
Update and adopt a resolution approving
amendments to the Fiscal Year 2025-26 Budget.
General Fund
Revenues
Revenue
Activity Through
December 31,
2025
Total Budget Amount
Remaining % Received
Property Tax $ 2,248,923 $ 3,370,784 $ 1,121,861 67%
Property Transfer Tax $ 92,060 $ 135,000 $ 42,940 68%
Vehicle License Fee Swap $ 1,124,242 $ 2,118,836 $ 994,594 53% Sales Tax $ 2,309,965 $ 5,682,925 $ 3,372,960 41%
Business License Tax $ 66,891 $ 265,000 $ 198,109 25%
Cannabis Business Tax $ 70,470 $ 137,000 $ 66,530 51%
Franchise Fees $ 339,560 $ 883,311 $ 543,751 38%
TOT $ 790,792 $ 1,537,959 $ 747,167 51%
Sales Tax - PSAF $ 93,899 $ 185,890 $ 91,991 51%
Development Fees and Permits $ 1,010,130 $ 1,682,272 $ 672,142 60% Intergovernmental Revenue $ 176,658 $ 382,500 $ 205,842 46% Charges for Services $ 943,311 $ 1,253,956 $ 310,645 75% Unrestricted Interest $ 87,390 $ 205,111 $ 117,721 43%
Restricted Interest $ 127,274 $ 191,248 $ 63,974 67%
Rent Received $ 42,101 $ 250,916 $ 208,815 17%
Misc Fees and Charges $ 102,846 $ 241,961 $ 139,115 43% Fines and Collections $ 58,228 $ 47,000 $ (11,228) 124% Transfers In $ 546,789 $ 1,343,579 $ 796,790 41%
TOTAL $ 10,231,528 $ 19,915,248 $ 9,683,720 51%
General Fund
Expenses
Expense By Department
Activity Through
December 31,
2025
Total Budget Amount
Remaining % Expended
City Council $ 140,630 $ 280,954 $ 140,324 50%
Legal Services $ 364,748 $ 700,000 $ 335,252 52%
City Manager's Office $ 1,010,634 $ 2,370,177 $ 1,359,544 43% Finance $ 1,218,594 $ 2,681,366 $ 1,462,772 45%
Planning $ 1,242,535 $ 2,416,629 $ 1,174,094 51%
Police $ 4,389,766 $ 9,026,954 $ 4,637,188 49%
Fire $ 2,911,384 $ 5,436,349 $ 2,524,965 54%
Public Works $ 48,998 $ 72,550 $ 23,552 68%
Non Departmental $ (1,658,900) $ (2,323,939) $ (665,039) 71% TOTAL $ 9,668,389 $ 20,661,040 $ 10,992,652 47%
General Fund
Balance
FY 24-25 FY 25-26 FY 25-26
Audited Adopted Revised
Actuals Budget Budget
Beginning Fund Balance $ 12,392,225 $ 12,481,946 $ 12,481,946 Revenue 20,277,578 19,915,248 19,864,648
Expenditure 18,938,214 19,911,040 19,911,040
One-Time Expenditure 1,249,644 750,000 750,000
Estimated Ending Fund Balance $ 12,481,946 $ 11,736,153 $ 11,685,554 Change in Ending Fund Balance $ 89,721 $ (745,792) $ (796,392) Components of Fund Balance
Reserve Policy (30%) $ 5,681,464 $ 5,973,312 $ 5,973,312 Pension Stabilization 5,312,978 5,504,226 5,504,226
Unallocated Fund Balance $ 1,487,504 $ 258,615 $ 208,015 % of annual expenditures 37.9% 31.3% 31.0%
General Fund - Fund Balance
Community
Services
Revenue
Revenue
Activity Through
December 31,
2025
Total Budget Amount
Remaining % Received
Transient Occupancy Tax $ 3,953,958 $ 7,689,796 $ 3,735,838 51% Other Revenue $ 958 $ 36,170 $ 35,212 3%
St Grants $ 118,280 $ 220,000 $ 101,720 54%
Fees & Charges $ 10,437 $ 2,500 $ (7,937) 417%
Admission and Passes $ 14,483 $ 28,000 $ 13,517 52%
Program Revenue $ 69,270 $ 291,500 $ 222,230 24%
Contracted Program Revenue $ 40,303 $ 105,000 $ 64,697 38% Special Events $ 20,355 $ 75,000 $ 54,645 27%
Event Permits $ 3,188 $ 20,000 $ 16,812 16%
Advertising $ 560 $ - $ (560) N/A
Program Sponsorships $ 11,123 $ 50,500 $ 39,377 22%
Reimbursement for Services $ 18,348 $ 49,500 $ 31,152 37% Field Rental $ - $ 5,750 $ 5,750 0%
Facility Rental $ 12,807 $ 31,675 $ 18,868 40%
Facility Long term Lease $ 16,506 $ 34,425 $ 17,919 48% Interest Income $ 130,535 $ 227,585 $ 97,050 57%
Contributions & Donations $ 967 $ 5,500 $ 4,533 18%
TOTAL $ 4,422,078 $ 8,872,901 $ 4,450,823 50%
Community
Services
Expenses
Expense By Program
Activity Through
December 31,
2025
Total Budget Amount
Remaining % Expended
General Administration $ 2,369,279 $ 4,737,139 $ 2,367,860 50% Recreation Programs $ 328,839 $ 396,246 $ 67,407 83%
ASES After School Program $ 141,766 $ 304,250 $ 162,484 47% Community Center $ 142,072 $ 281,242 $ 139,170 51%
Senior Services $ 145,105 $ 342,169 $ 197,064 42%
Parks and Trails $ 282,347 $ 716,909 $ 434,562 39%
Open Space $ 1,436 $ 60,500 $ 59,064 2%
School Facility Maintenance $ 20,754 $ 49,500 $ 28,746 42% Swim Center $ 106,732 $ 141,450 $ 34,718 75%
Arts and Culture $ 18,854 $ 77,500 $ 58,646 24%
Contracted Facility Operations $ 41,321 $ 103,699 $ 62,378 40% Special Events $ 140,859 $ 249,000 $ 108,141 57%
Foley Pavilion $ 11,872 $ - $ (11,872) NA
Non Departmental $ 498,203 $ 2,264,448 $ 1,766,246 22%
TOTAL $ 4,249,438 $ 9,724,052 $ 5,474,614 44%
Community
Services Fund
Balance
FY 24-25 FY 25-26 FY 25-26
Audited Adopted Revised
Actuals Budget Budget
Beginning Fund Balance $ 4,104,198 $ 4,568,207 $ 4,568,207 Revenue 8,647,594 8,872,901 8,619,901
Expenditure - Operations 8,139,407 8,598,341 8,644,341
Expenditure - Capital 44,177 1,160,265 1,160,265
Estimated Ending Fund Balance $ 4,568,207 $ 3,682,502 $ 3,383,502 Change in Ending Fund Balance $ 464,010 $ (885,705) $ (1,184,705) Components of Fund Balance
Reserve Policy (30%) $ 2,441,822 $ 2,579,502 $ 2,593,302 Pension Stabilization 526,823 535,781 535,781
Unallocated Fund Balance $ 1,599,562 $ 567,219 $ 254,419 % of annual expenditures 50% 37% 33%
Community Services Fund Balance
Measure T
Fund Balance
FY 24-25 FY 25-26
Audited Adopted
Actuals Budget
Beginning Fund Balance $ 5,434,565 $ 3,927,535
Revenue 3,043,708 2,896,000
Expenditure 4,550,737 5,763,627
Estimated Ending Fund Balance $ 3,927,535 $ 1,059,908
Change in Ending Fund Balance $ (1,507,030) $ (2,867,627) Unallocated Fund Balance $ 3,927,535 $ 1,059,908
% of annual expenditures 191.7% 51.7%
Measure T Fund Balance
Water Fund
Balance
FY 24-25 FY 25-26
Audited Adopted
Actuals Budget
Beginning Working Capital $ 3,253,755 $ 4,849,102
Revenue 8,452,516 8,661,416
Expenditure - Operations 6,363,032 6,647,192
Expenditure - Capital 494,136 2,669,754
Estimated Ending Working Capital $ 4,849,102 $ 4,193,572 Change in Working Capital $ 1,595,348 $ (655,530)
Components of Fund Balance
Reserve Policy (25%) $ 1,590,758 $ 1,661,798
Rate Stabilization Reserve 1,000,000 1,000,000
Pension Stabilization 608,917 630,836
Remaining Working Capital 1,649,427 900,938
Total $ 4,849,102 $ 4,193,572
Water Fund Balance
Wastewater
Fund Balance
FY 24-25 FY 25-26
Audited Adopted
Actuals Budget
Beginning Working Capital $ 2,973,137 $ 4,287,312
Revenue 9,723,480 10,758,638
Expenditure - Operations 8,174,089 8,726,646
Expenditure - Capital 235,216 1,900,012
Estimated Ending Working Capital $ 4,287,312 $ 4,419,292 Change in Working Capital $ 1,314,175 $ 131,980
Components of Fund Balance
Reserve Policy (25%) $ 2,043,522 $ 2,181,662
Rate Stabilization Reserve 1,000,000 1,000,000
Pension Stabilization 733,308 759,704
Remaining Working Capital 510,482 477,927
Total $ 4,287,312 $ 4,419,292
Wastewater Fund Balance
Electric Fund
Balance
FY 24-25 FY 25-26 FY 25-26
Audited Adopted Revised
Actuals Budget Budget
Beginning Working Capital $ 15,230,831 $ 19,948,635 $ 19,948,635 Revenue 20,200,118 17,746,367 17,746,367
Expenditure - Operations 15,274,229 16,335,371 16,335,371 Expenditure - Capital 208,084 6,124,637 6,127,879
Estimated Ending Working Capital $ 19,948,635 $ 15,234,994 $ 15,231,752 Change in Working Capital $ 4,717,804 $ (4,713,641) $ (4,716,883) Components of Fund Balance
Reserve Policy (50%) $ 7,637,115 $ 8,167,686 $ 8,167,686 Reserve Policy ($4 Million Capital) 4,000,000 4,000,000 4,000,000 Pension Stabilization 1,047,292 1,084,990 1,084,990
Remaining Working Capital 7,264,229 1,982,319 1,979,077 Total $ 19,948,635 $ 15,234,994 $ 15,231,752
Electric Fund Balance
Proposed
Amendments
Transient Occupancy Tax Revenue Reductions
Community Services Operating Fund ($253,000)
General Fund ($50,600)
Measure S Affordable Housing Fund ($50,600)
Community Services: Arts & Culture
Part Time Wages $10,000
Operational Expenses $36,000
Electric
Project ER008 Closeout Costs $3,242
Proposed
Action
Adopt a resolution approving amendments to the
Fiscal Year 2025-26 Budget.
Discussion, Feedback,
Questions, and Direction
Public
Comment
Comentarios
del público
March Avenue
Reconstruction and
Pedestrian Upgrades
Project Bid Award
City Council
February 17,2026
Recommended
Action
Adopt a Resolution:
Awarding the March Avenue Reconstruction and Pedestrian Upgrades Project to Argonaut Constructors, Inc. in the amount of $2,427,215.15
Authorizing the City Manager to execute the contract and negotiate and approve contract change orders up to 15% of the original contract amount
Approving a Cooperative Funding Agreement with Sonoma County Transportation and Climate Authority in the amount of $700,000
Authorizing the City Manager to execute the Agreement Amending the Fiscal Year 2025-2026 Adopted Budget
Background
Information
March Avenue is a primary east/west route within the City It serves as access to schools and health care among others The pavement has been sealed numerous times over the past 10 years and suffers from wearing and delamination of the multiple seal layers
Reconstruction of the pavement is needed.
Many of the curb ramps do not comply with current standards and need upgrading.
Opportunities to cross March Avenue are limited to a single crossing at Lupine Road
Additional crossing and crossing enhancements are needed Background
Information
March Avenue Reconstruction and Pedestrian Upgrades Project will:
Replace water services and fire hydrant laterals
Reconstructing the roadway pavement
Upgrade curb ramps at all intersections
Install curbline bulb-outs and Rectangular Rapid Flashing Beacon enhanced crossings at Lupine Road and Prentice Drive
Install two-foot striped buffering of the bike lane and green bike lane paint at conflict points approaching intersections Improve intersection visibility at Lily Street and Tulip Court by removing limited parking and replacing it with increased width bike lane buffers
Improve drainage at Daisy Street.
Background
Information
On February 3, 2025, Council approved a Professional Services Agreement with Brelje and Race Consulting Engineers for design of the March Avenue Reconstruction and Pedestrian Upgrades Project.
In April of 2024, the City was awarded $700,000 Sonoma County Transportation and Climate Authority (SCTCA) Funding Program Cycle 1 for construction of bicycle and pedestrian improvements as part of the Project.
On May 15, 2025, the City hosted a community meeting at Fitch Mountain Elementary School to share information about the project and gather input from businesses and residents along the corridor and the broader community
On June 16,2025 Staff presented a Project update to Council Discussion/
Analysis
On December 12, 2025, the Project was advertised for Public Bidding
Bids were opened on January 22, 2026
The City received six (6) bids
The lowest bid was from Argonaut Constructors, Inc. in the amount of $2,427,215.15
Bids received ranged from the apparent second lowest bid of $2,687,111.25 to the highest bid of $3,802,356.00
The lowest bid was lower than the engineer’s estimate of $2,967,000.00 by approximately 18% which can be attributed to the current completive bidding climate with the construction industry.
The bid from Argonaut Constructors, Inc. satisfies the bidding requirements for the project
Construction is anticipated to begin in March 2026 and be completed within 9 months
Fiscal Impact
The proposed contract is for $2,427,215 with 15% contingency of $364,082 for a total construction amount to $2,791,297
An additional $279,129 equating to 10% of the construction amount is estimated for inspections and construction
management for a total construction phase budget of $3,070,426 The adopted budget for the Project includes $2,410,300 in appropriations
Approximately $281,270 has been spent on design phase with $2,129,030 remaining
Staff recommend appropriating $615,643 from SB1 RMRA Fund, $193,100 from the Water Fund, and $132,654 from the Measure T Fund to support the project.
Recommended
Action
Adopt a Resolution:
Awarding the March Avenue Reconstruction and Pedestrian Upgrades Project to Argonaut Constructors, Inc. in the amount of $2,427,215.15
Authorizing the City Manager to execute the contract and negotiate and approve contract change orders up to 15% of the original contract amount
Approving a Cooperative Funding Agreement with Sonoma County Transportation and Climate Authority in the amount of $700,000
Authorizing the City Manager to execute the Agreement Amending the Fiscal Year 2025-2026 Adopted Budget
Questions?
Public
Comment
Comentarios
del público