City Hall, Council Chamber

100 Santa Rosa Avenue

Santa Rosa, CA 95404

City of Santa Rosa

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.

6 -

Present:

Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member

Victoria Fleming, Council Member Dianna MacDonald, Council

Member Jeff Okrepkie, and Council Member Chris Rogers

1 - Council Member Eddie Alvarez

Absent:

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).

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

6 -

Present:

Absent:

Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member

Victoria Fleming, Council Member Dianna MacDonald, Council

Member Jeff Okrepkie, and Council Member Chris Rogers

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.

Staff Report

Attachments:

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.

7 -

Present:

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.

Staff Report

Attachments:

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

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.

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))

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.

2024 Letter

Attachments:

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:

7 -

Yes:

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

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:

7 -

Yes:

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.

July 23, 2024, Regular Meeting Minutes.

12.1

Draft Minutes

Attachments:

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.

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:

7 -

Yes:

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.

Staff Report

Attachments:

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

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.

Staff Report

Attachments:

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

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”).

Staff Report

Resolution

Attachments:

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.

Staff Report

Resolution

Exhibit A

Attachments:

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

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.

Staff Report

Attachments:

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.”

Ordinance - Redline Changes

Ordinance

Attachments:

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"

The motion carried by the following vote:

6 -

Yes:

Mayor Natalie Rogers, Vice Mayor Mark Stapp, Council Member

Victoria Fleming, Council Member Dianna MacDonald, Council

Member Jeff Okrepkie, and Council Member Chris Rogers

1 - Council Member Eddie Alvarez

Recused:

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

Late Correspondence (Uploaded 08-08-2024)

Attachments:

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

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.

Staff Report

Attachments:

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:

7 -

Yes:

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

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:

7 -

Yes:

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

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.

Staff Report

Attachments:

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

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:

4 -

Yes:

Vice Mayor Mark Stapp, Council Member Dianna MacDonald,

Council Member Jeff Okrepkie, and Council Member Chris Rogers

3 -

Recused:

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:

4 -

Yes:

Vice Mayor Mark Stapp, Council Member Dianna MacDonald,

Council Member Jeff Okrepkie, and Council Member Chris Rogers

3 -

Recused:

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.

The motion carried by the following vote:

4 -

Yes:

Vice Mayor Mark Stapp, Council Member Dianna MacDonald,

Council Member Jeff Okrepkie, and Council Member Chris Rogers

3 -

Recused:

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.

Notice of Submittal

Location Map

Attachments:

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

Upcoming Meetings List

Attachments:

This item was received and filed.

Approved on: August 20, 2024

/s/ Dina Manis, City Clerk