Santa Rosa City Council Regular Meeting – July 9, 2024: Revenue Measures, Consent Items, and Public Comment
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Santa Rosa City Council Regular Meeting – July 9, 2024
The Santa Rosa City Council met on July 9, 2024, starting with a closed session at 12:00 PM, followed by a study session at 2:30 PM and a regular session at 4:00 PM. Key topics included a study session on proposed revenue measures (Transient Occupancy Tax and Business License Tax increases), approval of numerous consent items including labor agreements, and public comments on the Summerfield Theater and a call for a ceasefire resolution. The meeting adjourned at 5:56 PM.
Consent Calendar
- Motion 13.1 – Approved first amendment to a professional services agreement with Callander Associates for design services on the Hopper Avenue Corridor Fire Recovery Improvements Project, increasing compensation by $310,974 for a total not-to-exceed $777,734.
- Resolution 13.2 – Continued to the July 23, 2024 meeting (Go Sonoma Cooperative Agreements).
- Resolution 13.3 – Adopted a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Santa Rosa Creek Trail Access at North Dutton (West Side) Project.
- Resolution 13.4 – Approved additional contingency funds ($150,000) for HVAC maintenance services with Matrix HG, Inc., total contingency now $990,000.
- Resolution 13.5 – Approved a five-year blanket purchase order with Day Management Corporation for communications equipment maintenance, total not-to-exceed $568,414.08 plus 10% contingency.
- Resolution 13.6 – Approved second amendment to a professional services agreement with Turbo Data Systems Inc. for citation processing, adding 5 years and $490,000 for a total not-to-exceed $1,009,000.
- Resolution 13.7 – Approved a professional services agreement with Dudek for preparation of The Woodlands Environmental Impact Report ($389,785, funded by applicant) and amended the FY2024-25 budget accordingly.
- Resolution 13.8 – Approved fifth amendment to an agreement with PlaceWorks Inc. for General Plan 2050, GHG reduction, and Housing Element implementation, increasing compensation by $153,756 for a total not-to-exceed $2,953,665.
- Resolution 13.9 – Approved a 60-day extension of the Exclusive Negotiation Agreement with Burbank Housing Development Corporation and 10 E Street, LLC for the White House Site (730 3rd Street).
- Resolution 13.10 – Approved a three-year renewal of Microsoft Enterprise Agreement for software licenses and cloud services, total $2,352,547.48.
- Resolution 13.11 – Approved second amendment to a professional services agreement with Jacob Green & Associates for goal workplan implementation support, adding $61,800 for a total $141,800.
- Resolutions 13.12–13.24 – Adopted Memoranda of Understanding (MOUs) and wage/terms agreements for various city employee bargaining units, effective July 1, 2024 through June 30, 2027 (or 2026 for Unit 9 Fire Safety Management). These agreements cover police officers, police management, fire management, maintenance, transit, mechanics, utility operators, support services, professional, technical, executive management, middle management, confidential, city attorneys, and miscellaneous mid-management. Compensation changes include salary increases, market equity adjustments, increased automobile allowances, additional holidays, and expanded benefits.
All consent items were approved unanimously (5-0) with Councilmembers Alvarez and Fleming absent.
Public Comments & Testimony
- Study Session (Item 4.2) –
- Carl R. Jaeger, President of Sonoma County Coalition of Hosts and Friends, spoke in opposition to the proposed TOT increase, arguing that when combined with BIA assessments, the total rate would be the highest in the county, and suggested that lifting the ban on short-term rentals could generate more revenue.
- Ananda Sweet, Santa Rosa Metro Chamber of Commerce, spoke on the Business License Tax measure, urging additional outreach to impacted businesses and a more nuanced approach to avoid unintended consequences for businesses with high gross receipts but low profit margins.
- Duane DeWitt and Robert (short-term rental owner) also spoke in opposition to the proposed revenue measures, suggesting alternative approaches such as selling city properties and improving collection of existing taxes.
- Public Comment on Non-Agenda Matters (Item 14/18) –
- Several speakers (Paul Seif, Arthur Gonzalez Martinez, Terre Stefan, Derek Stefan) spoke in support of saving the Summerfield Theater, urging the Council to preserve it as a community cultural institution rather than seeing it replaced by a Planet Fitness. A petition with over 1,000 signatures was cited.
- Gregory Fearon, representing HEAPA, spoke on the 35th anniversary of 1249 Ripley being given to SAY, requesting that the property be preserved for continued use and that surplus city properties be made available to local non-profits for low-income housing.
- Susan Lamont spoke on various topics, including the need for a ceasefire resolution and criticizing the Council for not listening to the people.
- Jason Sweeney spoke in support of adopting a resolution requesting a ceasefire in Gaza, stating that the community has been asking for months and that the Council's silence obstructs democracy.
Discussion Items
- Study Session: Proposed Revenue Measures (Item 4.2) – Staff presented a proposal to increase the Transient Occupancy Tax (TOT) from 9% to 11% (estimated $1.5 million additional annual revenue) and to modernize the General Business License Tax (BLT) by removing the $3,000 cap and implementing a hybrid model with higher rates for businesses with gross receipts above certain thresholds. The BLT changes would affect about 400 of the city's ~12,900 businesses, with the rest unchanged. The measures are intended to address the city's $13.3 million general fund deficit. Councilmembers discussed concerns about competitiveness with neighboring cities, impact on small landlords and businesses with thin margins, and the need for more outreach. They gave direction to staff to bring back additional information, including comparisons to nearby cities and details on the most affected businesses, with a potential timeline for a vote on July 23 or August 6, 2024.
- Staff Briefing: Community Empowerment Plan Update (Item 8.1) – Ana Horta provided an update on upcoming community events, including a summer event in South Park on July 20 and participation in Juneteenth celebrations.
- Staff Briefing: Violence Prevention Partnership Community Climate Update (Item 8.2) – Lt. Kyle Philp and Danielle Garduno presented data on youth gang violence, noting an uptick in incidents involving 13-17 year-olds, with 5,556 calls for service in the downtown area year-to-date, less than 1% violent. The gang crimes team made 20 arrests related to 19 cases. The VPP team conducted outreach, engaged with schools, and provided support to families. The juvenile hall is currently full with over 60 youth. The biggest needs identified are street outreach mentorship and parent support.
Key Outcomes
- Revenue Measures (Item 4.2) – No final action was taken. Council directed staff to return with additional analysis, including comparisons to nearby cities, information on the 21 most affected businesses, and consideration of alternative models. Potential timeline: agendize for July 23, with possible continuation to August 6, 2024 (the legal deadline for the November ballot).
- Consent Calendar – Approved 5-0, including all labor agreements and other routine items.
- Minutes – Approved as submitted.
- Appointment – Mayor Rogers appointed Henry Huang to the Design Review Board.
- Legislative Updates – Council received and filed letters supporting multiple state and federal bills, including SB 903 (PFAS ban), SB 1101 (prescribed burns), AB 817 (remote participation), AB 2346 (organic waste), AB 2583 (school zone safety), and others, as well as a budget letter urging $1 billion for Homeless Housing, Assistance, and Prevention (HHAP) program.
Meeting Transcript
Good afternoon. I'd like to ask the interpreter currently on the Spanish channel to commence interpretation of the meeting. For those just joining the meeting, live interpretation in Spanish, it's available, and members of the public or staff wishing to listen in Spanish can join the Spanish channel by clicking on the interpretation icon in the Zoom toolbar. It looks like a globe. If you are on your cell phone or tablet, locate the three dots, tap them lightly, and put a check mark on your preferred language. Click done to activate and begin the interpretation. Claudia, will you please restate this in Spanish? Yes, thank you. Let the record show that all council members are present with the exception of Vice Mayor Stepp and Councilmember Fleming. Thank you, Mayor. Um although I own a small business in Santa Rosa, I've been advised by the city attorney that I have no prohibition to um I'm not prohibited uh for financial interest in participating in this item. So that is because my particular financial interest is not unique from a significant segment of the public order at PPC Regulation 1870. So I will be able to participate. Thank you very much, Councilmember Alvarez and Councilmember McDonald. We'll be moving on to item three, which are our close session items for today. We have 3.1 conference with legal counsel about existing litigation. 3.2 conference with real property negotiators, 3.3 conference with real property negotiators, and 3.4 conference with labor negotiators. Madam City Clerk, can you please facilitate? Actually, there are no members of the public that are present currently, so we will not be having uh public comment on this item. And we'll now recess into closed session. Thank you. Madam City Clerk, would you please call the roll? Thank you, Vice Mayor. Councilmember Rogers. Still here. Councilmember O'Krepke. Councilmember McDonald. Here. Councilmember Fleming is absent. Councilmember Alvarez has uh recused from this item. Vice Mayor Stepp. Here. And Mayor Rogers has also recused from this item. So let the record show that all council members are present with the exception of excuse me, um Mayor Rogers, Councilmember Alvarez, and Councilmember Fleming. Wonderful. All right. We are continuing item 4.1 to the July 23rd, 2024 regular meeting. Uh Madam City Manager, let's move on to item 4.2. Thank you, Vice Mayor. Good afternoon, uh, council members. Item 4.2 is proposed revenue measures. Thank you. Uh Vice Mayor Staff and members of the uh council. Uh I'm Alan Alton, the chief financial officer with me today is Eric Myers. He works for HDL, who is our business tax administrator, and who has done a lot of the work reviewing and coming up with options relative to our business tax ordinance. So the presentation that we have, uh the purpose of this is really to discuss two revenue measures that we intend to put on the November 2024 ballot. Uh the additional revenue that would come from these measures is part of a broader strategy uh to bring uh sustainability to our organization, especially the general fund. Um other parts of that strategy includes enhancing our economic development and reducing expenditures. Uh for the purpose of this presentation, we'll first does uh discuss TOT uh transient occupancy tax and then move to our business tax. So uh as I alluded to uh the city is uh general fund has a rather significant um uh budget crisis.
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