The Healdsburg City Council will be discussing the future of the Villa Chanticleer, which is in need of a new operator after the Tayman Golf Group Inc. announced plans to step down as operator, and the 2021-22 mid-year budget review at its next meeting on Tuesday, Feb. 22.
Presentations on COVID-19, water supply and the Healdsburg Police Department update are also on the agenda. The meeting starts at 6 p.m. and will be held via Zoom.
Announcements and presentations
Tuesday’s meeting will kick off with the reading of a proclamation declaring the month of February, 2022 as Black History Month in the City of Healdsburg.
Healdsburg Police Chief Matt Jenkins will also provide the annual police department update, which includes a review of police department activity in the last year. Jenkins will also discuss a look ahead at projects and goals for the current year.
Healdsburg City Manager Jeff Kay will provide an update on COVID-19 and on the drought and water supply.
Villa Chanticleer
There are no public hearings scheduled for Tuesday night so the council will jump straight into a discussion on the Villa Chanticleer. City staff is asking the council for feedback on the operational transition process and considerations for the Villa.
Due to the retirement of one of Tayman Group’s partners, the group is transitioning out of operations of the historic Villa Chanticleer on Fitch Mountain.
Last month, the city issued a request for interest in order to look at and consider individual firms or organizations that might be interested in operating the Villa. As reported by SoCoNews in early February, the city received a few requests for interests that they’d be reviewing.
In total, the city received 10 requests for interest from various organizations and firms such as Milestone Events Group, So Eventful and Corazón Healdsburg, among others.
The Villa has a long history not only with the city, but with residents and families as well as the site is commonly used for community events, such as the senior center appreciation dinner, and for for-profit activities such as weddings and corporate functions.
“The City transitioned the operation of Villa Chanticleer to Tayman in September 2014. In addition to assuming the Villa event operations, the City also assigned responsibility for coordinating use of the Villa Annex by the American Legion Sotoyome Post No. 111 that is operated under a separate lease agreement. Under the terms of the lease, the City assigned Tayman responsibility for the full facility operation of the Villa and coordinating use of the Villa Annex with the American Legion,” according to the agenda report.
Since 2014, Tayman has worked to enhance the recognition of the Villa as a viable event center for special events, private parties, weddings, etc.
“In addition, the terms of the lease require that the Villa be made available to local organizations at either free or discounted rates. Prior to the impacts of the COVID-19 pandemic, the operation transitioned from operating at a loss of approximately $32,000 for the 2014-2015 operating year to a net positive $74,000 for the 2018-2019 operating year,” states the report.
Feedback from the Healdsburg Planning Commission on the transition was mainly centered around a desire to keep community benefits rather than profit be the primary goal for the Villa.
The commission also asked why the city is not considering itself as the primary operator. According to agenda reports, this option could be pursued further if a suitable operation is not found.
Mid-year budget report
Administrative services and finance director Andrew Sturmfels will provide a report on the 2021-22 mid-year budget review and the council will consider the adoption of several budget amendments, specifically amendments to the city water fund and community services fund.
Staff is not recommending any change to the general fund on expenditures, however, they are recommending approval of the transfer of $1 million in one-time funds to the community services capital projects fund in order to support upcoming capital projects.
“More detailed discussions of capital funding for Community Services projects will be incorporated into the upcoming budget development process. The recommended actions at this time are intended to put the community services fund in a stronger position for implementing identified capital needs without unduly constraining the fund while staff continues to monitor revenues. Although the increase in revenue constitutes a positive trend, the ongoing uncertainty of the pandemic and the lack of ‘typical year’ data from the City’s largest TOT generator provide a basis for ongoing caution,” according to the agenda report.
In terms of changes to the water fund, city staff is recommending a decrease in projected $1 million in revenue due to the historic drought.
In looking at the overall budget, the general fund is currently projected to end the fiscal year meeting the council-mandated 30% reserve requirement and is projected to have an additional $77,614 above the reserve target.
The city community services fund, which is largely supported by the transit occupancy tax, is also expected to meet the 30% reserve requirement by the end of this fiscal year.
To learn more about the budget report, view the council agenda packet here and scroll down to packet page 72.
