City Council

City Hall, Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Santa Rosa, CA 95404 City Council Regular Meeting Minutes - Final Tuesday, August 6, 2024 1:30 PM 1. CALL TO ORDER AND ROLL CALL Mayor N. Rogers called the meeting to order at 1:31 p.m. Present: 6 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers Absent: 1 - Council Member Eddie Alvarez 2. REMOTE PARTICIPATION UNDER AB 2449 (IF NEEDED) 3. ANNOUNCEMENT OF CLOSED SESSION ITEMS PUBLIC COMMENTS: Sam Hoel spoke in support of the firefighters union and bargaining in good faith. Stephen DelPorto spoke in support of the firefighters and using the comparison cities, and really consider the current negotiation on the table. Mayor N. Rogers recessed to closed session at 1:38 p.m. to discuss Item 3.1 as listed on the agenda. 3.1 CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: Maraskeshia Smith, City Manager; Alan Alton, Chief Financial Officer; Dominique Blanquie, Human Resources Director; Siara Goyer, Employee Relations Manager; and Burke Dunphy of Sloan Sakai Yeung & Wong LLP. Employee Organizations: Santa Rosa Firefighters Association - Local 1401 (representing City Employee Unit 2). Employee Organizations: Santa Rosa Firefighters Association - Local 1401 (representing City Employee Unit 2). City of Santa Rosa Regular Meeting Minutes Page 2 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 This item was received and filed. Mayor N. Rogers adjourned closed session at approximately 2:13 p.m. and reconvened to the study session at 2:31 p.m. 4. STUDY SESSION Present: 6 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers Absent: 1 - Council Member Eddie Alvarez 4.1 DEVELOPMENT SERVICES STRATEGIC BUSINESS PLAN In late 2022, the City of Santa Rosa’s (City) Planning and Economic Development Department initiated the process to develop a Development Services Strategic Business Plan to guide development-related customer service, pre-application, encroachment permit review, entitlement permit review and public review meetings, and building and fire plan check and inspection services related to private land use and development in the City; and to build mission alignment across City Departments and Divisions, including common priorities, performance and reporting measures, and objectives. The study session will provide the City Council with an update about the community, stakeholder, and staff engagement process to gather feedback and insight and will review the proposed recommendations for the Department to focus on over the next three years. Attachments: Staff Report Attachment 1 - Strategic Business Plan for Development Services (Draft) Presentation Gabe Osburn, Director - Planning and Economic Development, and Aaron Baggarly from Matrix Consulting Group, presented and answered questions from Council. Council Member Alvarez joined the meeting at 2:42 p.m. PUBLIC COMMENT: Calum Weeks, Generation Housing, spoke in support of the strategic plan and suggested regular updates being shared with the community. City of Santa Rosa Regular Meeting Minutes Page 3 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 Present: 7 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers 4.2 VISION ZERO IMPLEMENTATION PLAN UPDATE It is recommended by the Transportation and Public Works Department that the Council hold a Study Session on the progress made related to the Sonoma Vision Zero Action Plan, the City of Santa Rosa Vision Zero Implementation Plan, and upcoming grant opportunities. This item is provided for Council's information and no action will be taken except for possible direction to staff. Attachments: Staff Report Presentation Revised Presentation (Uploaded 08-06-2024) Late Correspondence (Uploaded 08-06-2024) Dan Hennessey, Director - Transportation and Public Works, presented and answered questions from Council. PUBLIC COMMENT: Eris Weaver, Sonoma County Bicycle Coalition, spoke in support of the Vision Zero Implementation Plan and encouraged forward progress. Abby Arnold spoke in support of the presentation and encouraged rapid implementation of this Vision Zero Plan. Calum Weeks spoke in support of Transportation and Public Works staff, and efforts on the Vision Zero Implementation Plan, and investment on networks of safe streets. Alexa Forrester, Bikeable Santa Rosa, spoke in support of the Vision Zero Implementation Plan. 5. ANNOUNCEMENT OF ROLL CALL (IF NEEDED) 6. REPORT, IF ANY, ON STUDY AND CLOSED SESSIONS Mayor N. Rogers reported that there was no reportable action taken City of Santa Rosa Regular Meeting Minutes Page 4 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 on Closed Session Item 3.1. No public comments were made. 7. PROCLAMATIONS/PRESENTATIONS - NONE. 8. STAFF BRIEFINGS 8.1 COMMUNITY EMPOWERMENT PLAN UPDATE This is a standing item on the agenda. No action will be taken except for possible direction to staff. Ana Horta, Community Engagement Manager, presented and answered questions from Council. No public comments were made. 9. CITY MANAGER’S/CITY ATTORNEY’S REPORTS Maraskeshia Smith, City Manager, reported on the Fall/Winter Activity Guide release and registration for classes and programs through Recreation and Parks, the Neighborhood Services' Block Blast program guide is now available, the paving operations for the Neighborhood Road Disaster Recovery Project in the Coffey Park area is near completion and the implementation of Phase Two of the Steele Lane Elementary Pilot Study focusing on traffic calming measures on Steele Lane, and a recent survey released on downtown parking. Teresa Stricker, City Attorney, had nothing to report. No public comments were made. 10. STATEMENTS OF ABSTENTION BY COUNCIL MEMBERS Council Member Alvarez announced recusal from Item 13.6 due to financial interest in a cannabis business and on Item 15.2 due to ownership in a rental property. Mayor N. Rogers announced recusal from Item 15.2 due to ownership in a rental property. City of Santa Rosa Regular Meeting Minutes Page 5 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 Council Member Fleming announced recusal from Item 15.2 due to ownership in a rental property. 11. MAYOR'S/COUNCIL MEMBERS’ REPORTS Council Member Okrepkie provided a brief report on hotel rebuilding in Fountaingrove. Council Member Alvarez provided a brief report on an upcoming community event. Council Member MacDonald provided a brief report related to community events attended. Vice Mayor Stapp provided a brief report. Mayor N. Rogers provided a brief report. No public comments were made. 11.1 MAYOR'S/COUNCIL MEMBERS' SUBCOMMITTEE AND LIAISON REPORTS (AND POSSIBLE COUNCIL DIRECTION TO BOARD REPRESENTATIVE ON PENDING ISSUES, IF NEEDED) 11.1.1 Council Subcommittee Reports 11.1.2 Sonoma County Transportation Authority/Regional Climate Protection Authority (SCTA/RCPA) 11.1.3 Sonoma County Water Agency (SCWA) - Water Advisory Committee Mayor N. Rogers provided a brief report. 11.1.4 Association of Bay Area Governments (ABAG) 11.1.5 Sonoma County Agricultural Preservation and Open Space District Advisory Committee 11.1.6 Sonoma Clean Power Authority (SCPA) 11.1.7 Zero Waste Sonoma (formerly known as Sonoma County Waste Management Agency (SCWMA)) City of Santa Rosa Regular Meeting Minutes Page 6 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 11.1.8 Groundwater Sustainability Agency (GSA) 11.1.9 Sonoma County Homeless Coalition Mayor N. Rogers provided a brief report. 11.1.10 Renewal Enterprise District (RED) Council Member Fleming provided a brief report. 11.1.11 Public Safety Subcommittee 11.1.12 Other 11.2 DESIGNATION OF VOTING DELEGATE/ALTERNATE TO LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE 11.2.1 In order to vote at the Annual Business Meeting at the League of California Cities 2024 Annual Conference, each member City must designate a voting delegate and up to two alternate delegates. This year’s conference will be held in Long Beach from Wednesday, October 16 through Friday, October 18. The delegates must be designated by the City Council, and the voting delegate and alternates must be registered to attend the conference. Attachments: 2024 Letter No public comments were made. A motion was made by Council Member Rogers, seconded by Council Member MacDonald, to designate Mayor N. Rogers as voting delegate and Vice Mayor Stapp and Council Member Okrepkie as the two alternate delegates. The motion carried by the following vote: Yes: 7 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers 11.3 MATTERS FROM COUNCIL REGARDING FUTURE AGENDA ITEM 11.3.1 REQUEST FOR AGENDA ITEM REGARDING RECONSIDERATION OF SPECIFIC FEE INCREASES WITHIN THE FEE SCHEDULE ADOPTED ON MARCH 5, 2024 BACKGROUND: At the July 24, 2024, City Council meeting, Council City of Santa Rosa Regular Meeting Minutes Page 7 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 Member MacDonald requested a future agenda item to discuss reconsideration of fees recently adopted related to historic landmark alteration permits, fees for historic districts, and those additional fees identified by Director Osburn, so long as the reconsideration does not negatively impact those currently within the permit process. Mayor N. Rogers concurred with the request. A motion was made by Council Member MacDonald, seconded by Council Member Fleming, to approve placement of an agenda item for reconsideration of specific fee increases within the fee schedule adopted on March 5, 2024. The motion carried by the following vote: Yes: 7 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers 12. APPROVAL OF MINUTES No public comments were made. 12.1 July 23, 2024, Regular Meeting Minutes. Attachments: Draft Minutes Approved as submitted. 13. CONSENT ITEMS PUBLIC COMMENT: Mary Lou Schmidt, Tobacco Free Sonoma County Coalition, spoke in support of Item 13.6 and spoke on vaping concerns. Greg Damron, Tobacco Free Sonoma County Coalition Sonoma County, spoke in support of Item 13.6. Michelle McGarry spoke in support of Item 13.6 and expressed gratitude to the Council for adopting this ordinance. Michael Hilber spoke on Item 13.1. Duane DeWitt spoke in opposition to Item 13.1. City of Santa Rosa Regular Meeting Minutes Page 8 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 Approval of the Consent Agenda A motion was made by Vice Mayor Stapp, seconded by Council Member MacDonald, to waive reading of the text and adopt Consent Items 13.1 through 13.5. The motion carried by the following vote: Yes: 7 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers 13.1 RESOLUTION - ADMINISTRATIVE COST RECOVERY LIEN AGAINST THE REAL PROPERTY LOCATED AT 1597 WEST AVENUE, SANTA ROSA, CALIFORNIA, 95407 RECOMMENDATION: It is recommended by the Planning and Economic Department that the Council, by resolution, approve the administrative cost recovery lien in the amount of $3,552.40 against the property located at 1597 West Avenue, Santa Rosa, California, 95407 for the violations of the City Code that remain uncorrected by the responsible party, Norma M. Cronin, and authorize recording of an administrative cost recovery lien and placing the assessment on the property tax roll for collection. Attachments: Staff Report Attachment 1 - Administrative Enforcement Order Attachment 2 - Case File Photographs Attachment 3 - Vicinity Map Resolution Presentation This Consent - Resolution was adopted. RESOLUTION NO. RES-2024-127 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA CONFIRMING THE AMOUNT OF AN ADMINISTRATIVE COST RECOVERY LIEN, CONFIRMING AND ORDERING THE RECOVERY OF ADMINISTRATIVE COSTS ASSESSED AND IMPOSED BY THE ADMINISTRATIVE HEARING OFFICER FOR VIOLATIONS OF CITY CODE PROVISIONS OCCURRING ON THE PROPERTY AT 1597 WEST AVENUE, SANTA ROSA, APN 125-371-039, AND ORDERING THE ADMINISTRATIVE COST RECOVERY LIEN BE COLLECTED ON THE TAX ROLL BY THE SONOMA COUNTY TAX COLLECTOR 13.2 RESOLUTION - ADMINISTRATIVE COST RECOVERY LIEN AGAINST City of Santa Rosa Regular Meeting Minutes Page 9 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 THE REAL PROPERTY LOCATED AT 616 MENDOCINO AVENUE, SANTA ROSA, CALIFORNIA, 95401 RECOMMENDATION: It is recommended by the Planning and Economic Department that the Council, by resolution, approve the administrative cost recovery lien in the amount of $34,562.44 against the property located at 616 Mendocino Avenue, Santa Rosa, California, 95401 for the violations of the City Code that remain uncorrected by the responsible party, Sam Ruslender Young, and authorize recording of an administrative cost recovery lien and placing the assessment on the property tax roll for collection. Attachments: Staff Report Attachment 1 - Administrative Enforcement Order Attachment 2 - Case File Photographs Attachment 3 - Vicinity Map Resolution Presentation This Consent - Resolution was adopted. RESOLUTION NO. RES-2024-128 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA CONFIRMING THE AMOUNT OF AN ADMINISTRATIVE COST RECOVERY LIEN, CONFIRMING AND ORDERING THE RECOVERY OF ADMINISTRATIVE COSTS ASSESSED AND IMPOSED BY THE ADMINISTRATIVE HEARING OFFICER FOR VIOLATIONS OF CITY CODE PROVISIONS OCCURRING ON THE PROPERTY AT 616 MENDOCINO AVENUE, SANTA ROSA, APN 009-031-027, AND ORDERING THE ADMINISTRATIVE COST RECOVERY LIEN BE COLLECTED ON THE TAX ROLL BY THE SONOMA COUNTY TAX COLLECTOR 13.3 RESOLUTION - APPROVAL TO FURTHER EXTEND THE TERM OF THE EXCLUSIVE NEGOTIATION AGREEMENT, AS AMENDED, BETWEEN THE CITY OF SANTA ROSA AND ROGAL PROJECTS FOR THE REAL PROPERTY LOCATED AT 625 AND 637 3RD STREET, SANTA ROSA, CALIFORNIA RECOMMENDATION: It is recommended by Real Estate Services that the Council, by resolution, approve an amendment extending the term of the Exclusive Negotiation Agreement dated September 14, 2023, as amended, between the City of Santa Rosa and Rogal Projects, a sole proprietorship, for an additional ninety (90) days beyond August 9, 2024, for the potential disposition and development of the real property City of Santa Rosa Regular Meeting Minutes Page 10 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 located at 625 and 637 3rd Street, Santa Rosa, California, also known as Assessor Parcel Numbers 009-013-011 and 009-013-012 or Garage 5 (collectively, the “Property”). Attachments: Staff Report Resolution This Consent - Resolution was adopted. RESOLUTION NO. RES-2024-129 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING AN AMENDMENT TO FURTHER EXTEND THE TERM OF THE EXCLUSIVE NEGOTIATION AGREEMENT DATED SEPTEMBER 14, 2023, AS AMENDED, BETWEEN THE CITY OF SANTA ROSA AND ROGAL PROJECTS, FOR THE REAL PROPERTY LOCATED AT 625 AND 637 3RD STREET, SANTA ROSA, CALIFORNIA 13.4 RESOLUTION - APPROVAL OF SECOND AMENDMENT TO GENERAL SERVICE AGREEMENT F002145 FOR A ONE YEAR EXTENSION AND INCREASE IN COMPENSATION WITH WATERWORKS INDUSTRIES INCORPORATED RECOMMENDATION: It is recommended by the Recreation and Parks and Finance Departments that the Council, by resolution, approve the Second Amendment to General Services Agreement Number F002145 for aquatic weed control services to extend the term and increase compensation with Waterworks Industries Incorporated, Windsor, California, in the amount of $26,264.03, for a total cumulative amount not to exceed $119,189.03. Attachments: Staff Report Resolution Exhibit A This Consent - Resolution was adopted. RESOLUTION NO. RES-2024-130 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING THE SECOND AMENDMENT TO GENERAL SERVICE AGREEMENT NUMBER F002145 FOR A ONE YEAR EXTENSION AND INCREASE IN COMPENSATION WITH WATERWORKS INDUSTRIES INCORPORATED, WINDSOR, CALIFORNIA, IN THE AMOUNT OF $26,264.03, FOR A TOTAL CUMULATIVE AMOUNT NOT TO EXCEED $119,189.03. 13.5 RESOLUTION - SAFE STREETS AND ROADS FOR ALL GRANT City of Santa Rosa Regular Meeting Minutes Page 11 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 PROGRAM - SONOMA COUNTY TRANSPORTATION AUTHORITY APPLICATION RECOMMENDATION: It is recommended by the Transportation and Public Works Department that the Council, by resolution, support the City’s participation in the Sonoma County Transportation Authority’s (SCTA) application to the United States Department of Transportation (USDOT) as part of the Safe Streets and Roads for All (SS4A) grant program. Attachments: Staff Report Resolution Late Correspondence (Uploaded 08-06-2024) This Consent - Resolution was adopted. RESOLUTION NO. RES-2024-131 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA AFFIRMING THE CITY'S SUPPORT FOR THE SONOMA COUNTY TRANSPORTATION AUTHORITY'S SAFE STREETS AND ROADS FOR ALL GRANT PROGRAM APPLICATION 13.6 ORDINANCE ADOPTION SECOND READING - ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA ROSA AMENDING CHAPTER 6 OF THE SANTA ROSA MUNICIPAL CODE AND ADDING A NEW CHAPTER 6-20 ENTITLED “REGULATION OF RETAIL TOBACCO SALES” RECOMMENDATION: This ordinance, introduced at the July 23, 2024, Regular Meeting by a 6-0-0-1 vote (Alvarez recused), adds Chapter 6-20 to the Santa Rosa City Code titled “Regulation of Retail Tobacco Sales.” Attachments: Ordinance - Redline Changes Ordinance Late Correspondence (Uploaded 08-06-2024) A motion was made by Vice Mayor Stapp, seconded by Council Member Okrepkie, to waive reading of the text and adopt ORDINANCE NO. ORD-2024-010 ENTITLED: ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA ROSA AMENDING CHAPTER 6 OF THE SANTA ROSA MUNICIPAL CODE AND ADDING A NEW CHAPTER 6-20 ENTITLED "REGULATION OF RETAIL TOBACCO SALES" City of Santa Rosa Regular Meeting Minutes Page 12 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 The motion carried by the following vote: Yes: 6 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers Recused: 1 - Council Member Eddie Alvarez 14. PUBLIC COMMENT ON NON-AGENDA MATTERS Colleen Fernald spoke on the power of your office, murder, and peace. Michael Hilber spoke on drug dealing in Santa Rosa. Duane DeWitt spoke on the health, safety, and welfare of the Roseland community. Mayor N. Rogers announced taking Item 17.1 ahead of the report items. LATE CORRESPONDENCE Attachments: Late Correspondence (Uploaded 08-08-2024) 15. REPORT ITEMS 15.1 REPORT - TRANSIENT OCCUPANCY TAX BALLOT MEASURE (THIS ITEM WAS CONTINUED FROM THE JULY 23, 2024, REGULAR MEETING.) BACKGROUND: Santa Rosa City Code 3-28.020 imposes a tax on anyone who lodges within the City for 30 days or less. The current TOT rate is 9% of the room rate charged by a lodging operator. The tax is collected by the operator, along with the payment for renting the room, and remitted to the City. The 9% TOT was last updated in 1993. This is a general tax, that currently generates an estimated $6 million to the General Fund budget annually. RECOMMENDATION: It is recommended by the Finance Department that the Council (1) introduce an ordinance to amend Chapter 3-28 of the Santa Rosa City Code to increase the Transient Occupancy Tax (TOT), paid by guests at hotels, motels, and other lodging City of Santa Rosa Regular Meeting Minutes Page 13 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 establishments by two percent (2%), and (2) approve a resolution ordering the submission of a ballot measure to seek voter approval of this ordinance at the November 5, 2024, General Municipal Election, directing related actions, and designating an individual to submit, on behalf of the City Council, an argument in favor of the measure and a rebuttal argument. Attachments: Staff Report Resolution Exhibit A - Ordinance (Clean) Exhibit B - Ordinance (Redline) Correspondence Presentation REVISED_Resolution Redline (Uploaded 08-06-2024) CLEAN_FINAL Resolution (Uploaded 08-06-2024) Alan Alton, Chief Financial Officer, presented and answered questions from Council. PUBLIC COMMENT: Michael Hilber spoke in opposition to the item. Duane DeWitt provided alternates to the share of the Transient Occupancy Tax. A motion was made by Council Member Okrepkie, seconded by Council Member Rogers, to waive reading of the text and introduce ordinance entitled: ORDINANCE OF THE CITY OF SANTA ROSA AMENDING CHAPTER 3-28 OF THE SANTA ROSA CITY CODE, ENTITLED "TRANSIENT OCCUPANCY TAX," TO INCREASE BY 2% THE TAX PAID BY GUESTS AT HOTELS, MOTELS, AND OTHER LODGING ESTABLISHMENTS. The motion carried by the following vote: Yes: 7 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers A motion was made by Council Member Okrepkie, seconded by Council Member MacDonald, to waive reading of the text and adopt as amended City of Santa Rosa Regular Meeting Minutes Page 14 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 RESOLUTION NO. RES-2024-132 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA CALLING A SPECIAL ELECTION TO BE CONSOLIDATED WITH THE GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024 AND ORDERING THE SUBMISSION TO THE REGISTERED VOTERS OF THE CITY A MEASURE TO INCREASE THE CITY'S TRANSIENT OCCUPANCY TAX; PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR THE MEASURE; AUTHORIZING PREPARATION OF A BALLOT ARGUMENT IN FAVOR OF THE MEASURE AND REBUTTAL ON BEHALF OF THE CITY COUNCIL; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE. The motion carried by the following vote: Yes: 7 - Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers 15.2 REPORT - GENERAL BUSINESS TAX BALLOT MEASURE (THIS ITEM WAS CONTINUED FROM THE JULY 23, 2024, REGULAR MEETING) BACKGROUND: Santa Rosa charges a General Business Tax under Chapter 6-04 of the City Code to any business operating within city limits, subject to narrow exceptions. This tax was enacted in 1990, and until now, has not gone through a thorough review. There are different types of business taxes adopted by cities, including taxes based on employee head count; a flat business tax; taxes based on gross receipts with a maximum tax cap; and, taxes based on gross receipts without a maximum tax cap. Santa Rosa’s Business Tax is based on gross receipts, with different tax rates for different business categories. There is currently a minimum tax of $25 for businesses with annual gross receipts of less than $25,000. The amount of tax a business will pay is currently capped at $3,000 annually. The current rate structure has not been changed or updated since 1990. The City’s General Business Tax is a general tax, currently generating funding in the amount of approximately $4.7 million annually to pay for general City services. In 2018, following legalization of the cannabis industry in California, the City adopted an entirely separate business tax structure for businesses in the cannabis industry under Section 6-10 of City of Santa Rosa Regular Meeting Minutes Page 15 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 the City Code. That cannabis industry tax does not fall into the scope of the proposed changes to the City’s General Business Tax. RECOMMENDATION: It is recommended by the Finance Department that the Council (1) introduce an ordinance to amend chapter 6-04 of the Santa Rosa City Code, entitled “General Business Tax” to increase the maximum tax to $10,000 annually, adjust business tax rates, and tax Short-Term Rental businesses, and (2) approve a resolution ordering the submission of a ballot measure to seek voter approval of that ordinance at the November 5, 2024, General Municipal Election, directing related actions, and designating an individual to submit, on behalf of the City Council, an argument in favor of the measure and a rebuttal argument. Attachments: Staff Report Resolution Exhibit A - Ordinance (Clean) Exhibit B - Ordinance (Redline) Correspondence Presentation Late Correspondence (Uploaded 08-06-2024) Late Correspondence (Uploaded 08-07-2024) Alan Alton, Chief Financial Officer, presented and answered questions from Council. PUBLIC COMMENT: Warren Chin, MD, spoke in opposition to the business tax as presented, acknowledged the work put in on crafting the measure, and provided suggestions for additional modifications. Joanne Webster, North Bay Leadership Council, spoke in support of the ballot measure with the modifications suggested by the Medical Council. Michael Hilber spoke in opposition to the item. Duane DeWitt spoke in support of increasing the cap for larger businesses. Adina Flores spoke in opposition to the business license tax City of Santa Rosa Regular Meeting Minutes Page 16 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 measure. A motion was made by Council Member MacDonald, seconded by Council Member Okrepkie, to waive reading of the text and introduce ordinance entitled: ORDINANCE OF THE CITY OF SANTA ROSA AMENDING CHAPTER 6-04 OF THE SANTA ROSA CITY CODE, ENTITLED "GENERAL BUSINESS TAX," TO INCREASE THE MAXIMUM TAX TO $10,000 ANNUALLY, ADJUST TAX RATES AND TAX SHORT-TERM RENTAL BUSINESSES The motion carried by the following vote: Yes: 4 - Vice Mayor Mark Stapp, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers Recused: 3 - Mayor Natalie Rogers, Council Member Eddie Alvarez, and Council Member Victoria Fleming A motion was made by Council Member MacDonald, seconded by Council Member Rogers, to waive reading of the text and adopt RESOLUTION NO. RES-2024-133 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA CALLING A SPECIAL ELECTION TO BE CONSOLIDATED WITH THE GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024 AND ORDERING THE SUBMISSION TO THE REGISTERED VOTERS OF THE CITY A MEASURE TO AMEND THE CITY'S GENERAL BUSINESS TAX ORDINANCE; PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR THE MEASURE; AUTHORIZING PREPARATION OF A BALLOT ARGUMENT IN FAVOR OF THE MEASURE AND REBUTTAL ON BEHALF OF THE CITY COUNCIL; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE The motion carried by the following vote: Yes: 4 - Vice Mayor Mark Stapp, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers Recused: 3 - Mayor Natalie Rogers, Council Member Eddie Alvarez, and Council Member Victoria Fleming A motion was made by Council Member Rogers, seconded by Vice Mayor Stapp, to approve assignment to the Economic Development Subcommittee to discuss the reduction of the application of the business tax maximum as related to MediCal and Medicare providers and other businesses to help drive incentives for businesses in Santa Rosa. City of Santa Rosa Regular Meeting Minutes Page 17 of 17 City Council Regular Meeting Minutes - Final August 6, 2024 The motion carried by the following vote: Yes: 4 - Vice Mayor Mark Stapp, Council Member Dianna MacDonald, Council Member Jeff Okrepkie, and Council Member Chris Rogers Recused: 3 - Mayor Natalie Rogers, Council Member Eddie Alvarez, and Council Member Victoria Fleming 16. PUBLIC HEARINGS - NONE. 17. WRITTEN COMMUNICATIONS 17.1 NOTICE OF FINAL MAP - CERTIFICATE OF COMPLIANCE 22-003 - Provided for information. Attachments: Notice of Submittal Location Map This item was received and filed. 18. PUBLIC COMMENT ON NON-AGENDA MATTERS None. 19. ANNOUNCEMENT OF CONTINUED CLOSED SESSION ITEMS, RECESS TO CLOSED SESSION IN THE MAYOR’S CONFERENCE ROOM, RECONVENE TO OPEN SESSION, AND ANNOUNCEMENTS [IF NEEDED] 20. ADJOURNMENT OF MEETING Vice Mayor Stapp adjourned the meeting at 6:40 p.m. The next regular meeting will be held on Tuesday, August 20, 2024 at a time set by the Mayor. 21. UPCOMING MEETINGS 21.1 UPCOMING MEETINGS LIST Attachments: Upcoming Meetings List This item was received and filed. Approved on: August 20, 2024 /s/ Dina Manis, City Clerk