Fortuna City Council
June 6, 2022

STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Merritt Perry, City Manager
SUBJECT: City of Fortuna Basic Financial Statement Audit for the year ended June 30, 2021
STAFF RECOMMENDATION:

Receive and file the City of Fortuna’s Basic Financial Statements Audit Report for the year ended June 30, 2021.

EXECUTIVE SUMMARY:

R.J. Ricciardi, Inc., Certified Public Accountants was engaged by the City of Fortuna to perform an all funds audit. The audit included the examination of the financial records and the financial statements of the City as of, and for, the fiscal year ended June 30, 2021. The auditor’s unqualified opinion stated in part:
“…[T]he financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business type activities, each major fund and the aggregate remaining fund information and, where applicable, cash flows of City of Fortuna, as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
The opinion provides assurance that the City’s financial statements are free of material misstatement. The finance department is pleased to present additional information along with the financial statements, which provides detail on the basic financial statements, such as a Management’s Discussion and Analysis, which can be found starting on page 3, and a statistical section, which can be found starting on page 67. The Management Discussion and Analysis is intended to be a discussion of compliance, risks, and future plans, such as goals and new projects as well as analyze the City’s performance to date. Staff would recommend starting here when reviewing the Basic Financial Statements Audit Report as this is a good place to get a general overview of how the City performed over the course of the last year. The statistical section provides 10 years’ worth of history, when available, about the City’s finances and operations and about the City’s constituents and economy. This is a great place to analyze trends and assists in projecting where the City is headed over the long term.

Business Agenda Item 5d

RECOMMENDED COUNCIL ACTION:

Receive and file the City of Fortuna’s Comprehensive Annual Financial Report for the year ended June 30, 2021. Voice vote.

ATTACHMENTS:
 City of Fortuna Basic Financial Statements Audit Report for the year ended June 30, 2021  City Council and Management Report for the year ended June 30, 2021

Business Agenda Item 5e

STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Brendan Byrd, Director of Public Works/City Engineer THROUGH: Merritt Perry, City Manager
SUBJECT: Authorization to Award a Construction Contract for the Kenmar and Drake Hill Water Booster Station Generators Project (CIP 9102) to Robert Colburn Electric and establish a maximum contract amount of $376,600 STAFF RECOMMENDATION:

Authorize the City Manager to award the Kenmar and Drake Hill Water Booster Station Generators Project (CIP 9102) to Robert Colburn Electric and establish a maximum contract amount of $376,600.

EXECUTIVE SUMMARY:

The Kenmar and Drake Hill Water Booster Station Generators Project bid package was released and publically advertised on April 26, 2022. The bid period ended on May 19, 2022, at which time the City received three responsive bids. The bid totals including base and alternate bid items is shown in the table below:

Bid Schedule
Bidders
Robert Colburn
Electric, Inc. Pierson Company James Day Construction, Inc.

Total Base Bid $300,665 $316,680 $409,820
Total Alternate #1 $19,565 $29,630 $20,000
Total Alternate #2 $19,279 $29,630 $20,000
Total Base &
Alternates $339,509 $375,940 $449,820
Business Agenda Item 5e

The apparent low bid was submitted by Robert Colburn Electric with a total bid price of $339,509, which is within the total established City construction budget of $376,600. The Engineers Bid Estimate for the total project (base plus all alternates) was approximately $385,000.

City staff have confirmed that the bid received from Robert Colburn Electric was fully responsive and that they and their sub-contractors have active licenses and registrations. Staff recommend awarding the contract to Robert Colburn Electric.

If the project is awarded, staff anticipate being under contract in June, at which time the contractor would immediately order the generators due to long ordering lead times. Mobilization and construction is anticipated to begin sometime later this year, and will likely depend on the exact lead time for the generator. The draft Notice of Potential Award is included as Attachment A.

FINANCIAL IMPACT:

This project is funded in part through the Hazard Mitigation Grant Program (FEMA), which funds hazard mitigation projects that can provide a 25% local match. See the table below for a breakdown of project funding.

Funding Source
Hazard Mitigation
Grant Program
Funding
City Matching
Funds, Water
Capital Reserve
Total Funding
City Fund Number 351 510 -
Funding Amount $338,700 $112,900 $451,600
As shown above, the total available funding for the project is $451,600. In 2021, staff awarded a professional services contract to PACE Engineering in the amount of $74,500 to cover the engineering portion of the project, which left a remaining budget for construction of $376,600.

Staff propose to award the project to Robert Colburn Electric and enter into a contract for $339,509 (the bid total), and to establish a maximum contract amount of $376,600 (the budget total). The approximately $37,000 difference between the bid total and the maximum contract amount would be reserved as a construction contingency to cover any unforeseen costs that arise during the project. The contingency would be approximately 10% of the total project value, which is a conventional value for construction contracts.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Motion to Authorize the City Manager to award the Kenmar and Drake Hill Water Booster Station Generators Project (CIP 9102) to Robert Colburn Electric and establish a maximum contract amount of $376,600. Voice vote.

Attachments:
 Attachment A – Draft Notice of Potential Award
Business Agenda Item 5e

Attachment A
May XX, 2022 Sent via E-mail
Robert Colburn Electric, Inc.

P.O. Box 3667
Eureka, CA 95502
Re: NOTICE OF POTENTIAL AWARD
Kenmar and Drake Hill Emergency Generator Project
Dear Bob Colburn:

I am pleased to inform you of the intent to recommend that the City Council or its authorized designee award the Contract for the above-referenced Project (“Project”) to Robert Colburn Electric, Inc. (“Contractor”) for the Contract Price of $339,509.00 based on Contractor’s Bid Proposal submitted on May 19, 2022.

A copy of the Contract accompanies this Notice. Contractor must execute 2 copies of the enclosed Contract and return the wet-inked copies to my attention, accompanied by the required Payment Bond, Performance Bond, and insurance certificates and endorsements, no later than ten days from the date of this Notice of Potential Award, above.

Failure to execute and return the enclosed Contract and required bonds and insurance documentation within the specified time could result in forfeiture of Contractor’s bid security. This Notice of Potential Award does not bind the City to award the Contract. The City, acting through its City Council or authorized designee, reserves the right to reject any or all bids, and the right to decline to award the Contract, notwithstanding any staff recommendation.

Please acknowledge receipt of this Notice of Potential Award by signing the attached Acknowledgement of Notice of Potential Award, as indicated, and transmitting the Acknowledgement to my office via email at [email protected]. Do not hesitate to contact me if you have any questions in this regard.

Sincerely,
Buffy Gray
Buffy Gray
Deputy City Clerk
Enclosure
Business Agenda Item 5e

Acknowledgement of Notice of Potential Award
On behalf of <________________________________________> (“Contractor”), I acknowledge receipt of the Notice of Potential Award for the Kenmar and Drake Hill Emergency Generator Project:
s/_________________________________
Name: _____________________________
Title: ______________________________
Date: ______________________________
Business Agenda Item 5f

STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Brendan Byrd, Public Works Director/City Engineer THROUGH: Merritt Perry, City Manager
SUBJECT: Supplemental Budget Request to Develop a Baseline Determination for Vehicle Miles Travelled (VMT) Pursuant to SB 743
STAFF RECOMMENDATION:

Receive staff presentation and recommendation to approve a supplemental budget request to develop a baseline determination for Vehicle Miles Travelled pursuant to SB 743.

EXECUTIVE SUMMARY:

Senate Bill (SB) 743 was signed into law in 2013, with the intent to better align California Environmental Quality Act (CEQA) practices with statewide sustainability goals related to efficient land use, greater multi-model transportation choices, and greenhouse gas (GHG) reductions. The bill came into effect in July 2020.

SB 743 fundamentally changes the way the City as a local agency can assess land use and transportation projects under CEQA. Specifically, it eliminates vehicular congestion, which the City expresses as Level of Service (LOS), as the operative metric for identifying transportation impacts. In its place, SB 743 identifies Vehicle Miles Traveled (VMT) as the key impact criterion under CEQA. VMT measures the number and length of trips on a typical daily per capita basis.

VMT is a useful indicator of overall land use and transportation efficiency, where the most efficient system is one that minimizes VMT by encouraging shorter vehicle trip lengths, more walking and biking, or increasing the use of carpooling and transit. Reducing per capita VMT will reduce per capita emissions, including GHG, in line with State Air Quality and Climate Change goals.

To provide an example of how this method shift may impact a project, a development project that is found to increase per capita VMT above the threshold amount would be required to mitigate for the impacts, consistent with regular CEQA conventions. To mitigate for an increase to VMT, a project may propose to install bike lanes, perform sidewalk infill, implement an employee car share program, or build or provide access for trails, all of which on the whole would work to offset the VMT increase within the Fortuna City limits.

Despite the statewide shift to VMT under CEQA, the City would still look to assess projects for impacts to LOS (congestion). Under SB 743, the City can retain performance standards that Business Agenda Item 5f

address congestion, safety, and traffic flow as part of the City’s General Plan, which staff plan to do.

As this is new legislation, the City currently does not have baseline VMT values or impact thresholds, and therefore all projects subject to CEQA would be required to develop an entire VMT analysis for each project. In an effort to streamline and economize the development and CEQA review process, staff propose creating and implementing Fortuna-specific VMT baseline values and significance thresholds, which is allowable under SB 743. By developing standard baselines and thresholds, staff can more easily and uniformly assess the impacts of proposed projects, and this portion of the environmental review process should be less costly for developers.

To complete the work to develop a VMT baseline, methodology, and impact thresholds, staff solicited for a scope and fee from GHD. GHD is uniquely qualified to complete this effort, given they are the engineering consultant currently engaged in most major planning and transportation related City projects, in addition to being the City’s regular on-call traffic engineer. GHD’s scope to complete this report is included as Attachment A.

If this SBR is approved staff will look to execute a task order with GHD under the on-call contract to complete the work.

FINANCIAL IMPACT:

As shown in GHD’s draft fee schedule in Exhibit A, the estimated cost to complete a work is $22,500 (not to exceed). Staff propose allocating funds from Fund 140, the City’s Traffic Impact Fee, to cover the cost to develop baseline VMT deliverables and ordinance. A draft of the SBR is included as Attachment B. Fund 140 currently has a balance of approximately $300,000, including active encumbrances.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Approve a supplemental budget request in the amount of $22,500 to develop a baseline determination for Vehicle Miles Travelled pursuant to SB 743.

ATTACHMENTS:
 Attachment A – GHD Scope of Services and Fee
 Attachment B – Draft Supplemental Budget Request
Business Agenda Item 5f

Exhibit A
Scope of Work
Baseline Vehicle Miles Travelled (VMT) for SB 743
A. Additional Services to be Performed:

As discussed with the City of Fortuna, GHD has developed the following cost proposal for the following services. As a means of addressing the requirements for SB 743, GHD will develop baseline vehicle miles travelled (VMT) averages documenting the VMT methodology, models and data utilized, and the geographic areas considered for determining the appropriate baseline VMT metric. VMT refers to the amount and distance of automobile travel attributable to a project. GHD will develop VMT significance criteria based on the baseline metrics and VMT guidance for the City to utilize, in a consistent manner, for updates to the General Plan and for future land use projects.

Task 1: VMT Baseline Determination & Citywide SB 743 Implementation SB 743 allows lead agencies the discretion to choose the methodology for determining a threshold of significance including three aspects: (1) area of analysis; (2) whether and how much a reduction is needed; and (3) analytical tool to be used in this analysis. Section 21099 of the Public Resources Code also states that the criteria for determining the significance of transportation impacts must promote: (1) reduction of greenhouse gas emissions; (2) development of multimodal transportation networks; and (3) a diversity of land uses. The Governor’s Office of Planning and Research (OPR) has provided guidance and recommendations on VMT analysis, methodology, screening criteria, and significance thresholds in their Technical Advisory on Evaluating Transportation Impacts in CEQA (December 2018). GHD anticipates utilizing CEQA and OPR guidance for determining the methodology, screening criteria, and significance thresholds for application in the City of Fortuna.

Task 1.1: Model Choice & Methodology
GHD has included ongoing project management including check-in meetings in this scope amendment. Regular check-in meetings specifically related to the VMT baseline determination and guidelines work will be critical for the team to discuss progress and maintain schedule so the VMT guidance can be adopted by the City. This task includes internal and external coordination and task management, and regular project meetings.

For determining the baseline VMT metrics, the analytical tools and methodologies are first identified. Travel demand models can provide a defensible and straightforward way to evaluate existing levels of VMT. For the City of Fortuna, there are two options for travel models: the California Statewide Travel Demand Model and the Humboldt County Regional Travel Demand Model (HCTDM), maintained by Caltrans District 1. GHD proposes utilizing the Business Agenda Item 5f

HCTDM as the network and model structure is more refined in the City of Fortuna than the Statewide model and should provide more accurate VMT results. The HCTM is a trip-based model which can be utilized to assess trip-based VMT metrics for residential, office, and retail uses.

The OPR Technical Advisory states that “VMT estimation should not be truncated at a modeling or jurisdictional boundary for convenience of analysis when travel behavior is substantially affected beyond that boundary”. GHD proposes to utilize big data source Replica, which utilizes US Census Data and location-based-services, to evaluate trip lengths outside of the HCTDM area (County boundary) and adjust the model’s external links as necessary to account for the full length of trips outside of the County boundary.

GHD will work with the City to identify the various baseline VMT efficiency metrics that are applicable for the City, i.e., residential VMT per capita, employee VMT per job. These baseline VMT metrics will then be the basis for determination of the City’s reduction targets and significance thresholds.

Geographic Choices for Baseline
GHD will identify and analyze options for geographic areas that might serve as a baseline to which Fortuna’s average VMT metrics will be compared. Based on this analysis, GHD will recommend to the City an appropriate geographic area for determining the VMT baseline metrics.

Percent Reduction Target
CARB has concluded that average per-capita VMT will need to be reduced by 15% to meet the State’s greenhouse gas reduction goals. However, this state-wide average may not be appropriate for all jurisdictions, and CARB has set higher targets in some MPO areas and lower targets in others. Since Fortuna is not located within an MPO area, no specific target has been set for Fortuna. GHD will recommend to the City an appropriate percent reduction target for determining significance thresholds that is supported by substantial evidence. GHD proposes to review current local Climate Action Plans to see if an applicable threshold can be deduced.

Task 1.2: Interim SB 743 Ordinance
GHD proposes to provide a technical memorandum which presents the proposed VMT guidance for the City to utilize in establishing an interim ordinance for SB 743 implementation.

The interim ordinance would include identifying VMT methodology and thresholds. GHD proposes to defer identifying streamlining criteria and mitigation strategies in the interim ordinance due to the need to establish this ordinance in a short timeframe for use in the General Plan update. GHD will deliver a draft and final memorandum, incorporating edits and comments from City staff.

Note: GHD assumes the contents of the comments from City staff on the Draft Memorandum will be largely editorial and formatting in nature. Any comments requiring new analysis or concept development may be subject to additional scope and fee. These tasks do not include GHD’s attendance at any governing board hearings for consideration of adoption of the Business Agenda Item 5f

interim ordinance. If GHD’s attendance is required at any government board hearings, it will be subject to additional scope and fee based on time and materials. These tasks do not include identifying screening and streamlining criteria, identification of applicable mitigation strategies, or example evaluations.

B. Compensation:

GHD estimates completion of a draft interim VMT guidance (Task 1.2) 8 weeks after Notice to Proceed. The total compensation for services will be $22,500 on a not-to-exceed time and materials basis, broken down by staff in estimated hourly increments as follows.

Table 1 Cost Estimate
Task
D.

Hubbard
Senior
QA/QC
B. Park
Senior
Engineer
R. Southern
Project
Engineer
Technicia
n
Total
Task 7.1: VMT
Methodology and
Thresholds
8 24 34 20 $16,00
0 Task 7.2: VMT
Interim Ordinance 4 2 32 $6,500
Task 7 Total 12 26 66 20 $22,50
0 Requesting Department: Packet #
JV #
Fund Name/s Amended: Prepared By
Checked By
Fund #/s Amended: Post Date
New Budget Appropriation Intra‐Department Budget Transfer Additional Budget Appropriation Other Budget Transfer

REVENUES
Account Description Account Number Current Budget  Proposed Amendments
Amended
Budgets
TOTAL

EXPENDITURES
Account Description Account Number Current Budget  Proposed Amendments
Amended
Budgets
TOTAL

PURPOSE
Department Head: Date:

Finance Director: Date:

City Manager: Date:

CITY OF FORTUNA
SUPPLEMENTAL BUDGET REQUEST
Business Agenda Item 5g

STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: FBID Annual Report
STAFF RECOMMENDATION:

Staff recommends that the Council accept, with or without modification, the Fortuna Business Improvement District Annual Report.

EXECUTIVE SUMMARY
The Fortuna Business Improvement District (“FBID”) was established by the City in 1990 under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.) to benefit and promote the City’s businesses. Under the enabling statute, the Council is required to approve an annual report that contains the following information:
(1) Any proposed changes in the boundaries of FBID or in any benefit zones within the area. (2) The improvements and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements and the activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part.

The annual report will be presented to the Council during the Council Meeting in written and oral form.

The Council may approve the report as filed or may modify the report and approve it as modified.

Business Agenda Item 5g

BACKGROUND:

As noted above, FBID was established by the City for the purpose of imposing benefit assessments and charges on businesses for certain identified purposes, including:
 Promotion of public events which are to take place on or in public places in the District  Decoration of any public place in the District
 Furnishing of music in any public place within the District; and  The general promotion of business activities within the District  Marketing to fill available space, recruiting and expansion of commercial enterprise FBID is administered through an advisory committee of the City Council with the following designated representatives:
 One from the Downtown Area
 One Redwood Village Shopping Center
 One Citywide
 One designated by the City Council
 One nominated by the Chamber of Commerce
 Two people nominated by the other representatives
Since at least August 1, 2000, the City has contracted with the non-profit Fortuna Business Improvement Corporation to administer FBID. The Corporation’s board of directors served as the FBID advisory board. The Corporation employed an executive director to carry out board policies, run the day-to-day business of FBID, and work with businesses.

In the past two years, FBID has dealt with criticism and challenges ranging from questions regarding fiscal controls to different opinions of how FBID should best serve the business community. Another ongoing problem has been the lack of a quorum at FBID Board meetings and more importantly, a general lack of direct participation by businesses that are assessed.

The Corporation has also failed to complete required annual audits over the past six years, largely due to lack of adequate budgeting to ensure funds are available to complete the audits. This failure resulted in the City loaning the Corporation sufficient funds to complete audits of the prior six years. The audit was recently completed.

The results of the audit were not positive, and the audit report has been shared with the Council and discussed at prior meetings. In summary, the auditor found that the Corporation, during the six (6) years under audit, lacked adequate financial controls, implemented inadequate segregation of duties, made overpayments of compensation, and lacked effective managerial oversight.

Following the Council’s review of the auditor’s findings, the Council held a special meeting on May 12, 2022, to consider options for the future administration of FBID. The options presented by staff were:

Option 1 – FBID Continuing As-Is – NOT RECOMMENDED
Business Agenda Item 5g

Option 2 – FBID Continuing as a Function of City of Fortuna Option 3 – Dissolution of the FBID
Each option was considered and discussed in dept, but the Council withheld a final decision.

Following the May 12, 2022, Special Meeting, the Corporation’s president informed Staff that all members of the Board of Directors intended to resign, leaving the Corporation without a governing board and FBID without an advisory board. This action would result in the Corporation’s inability to perform its contractual obligations to administer FBID, necessitating the contract’s termination.

Staff worked with the Corporation’s president Emily Hobelmann to delay the resignations until the contract can be terminated in an orderly fashion and the assets of the Corporation, including any unexpended funds, returned to the City. The City Manager sent the Corporation a letter on May 18, 2022, requesting that the Corporation perform the following tasks, each of which the Corporation has agreed to perform or has performed:

1. Compile and deliver to the City all records in the Corporation’s possession or control concerning or relating to the FBID, including, but not limited to, all financial records, contracts, receipts, vendor information, budgets, plans, notes, or other operational records. Any correspondence with the Corporation’s counsel should not be delivered to the City and should be retained.

2. Remit to the City any funds derived from the City for FBID purposes (including annual assessment revenue or City matching funds), less an amount necessary to cover final payroll and/or bookkeeping services through May 27, 2022.

3. Make arrangements for the City to assume the storage lease and provide access to the same.

4. Deliver to the City any business property or other assets acquired by the Corporation using any funds derived from the City for FBID purposes (including the annual assessment revenue or City matching funds). For any business property located in the storage unit, the Corporation will deliver these items to the City by making arrangements for the City to assume the storage lease.

5. Make arrangements for the Corporation’s QuickBooks file relating to the FBID to be delivered to the City after the bookkeeper’s services have concluded.

6. Make arrangements for the City to assume the FBID website, including login credentials and account information for your webhosting service.

7. Close the FBID Postal Box (P.O. Box 1000) and have FBID mail forwarded to the City’s mailing address, i.e., P.O. Box 545, Fortuna, CA 95540.

Business Agenda Item 5g

As a result of the termination of the contract, staff is recommending and making plans to administer FBID in-house for the foreseeable future, until a long-term solution can be determined.

The Council could, alternatively, direct staff to begin the process of dissolving FBID. However, maintaining the Corporation to administer FBID is no longer a viable option.

FINANCIAL IMPACT:

No fiscal impact.

RECOMMENDED COUNCIL ACTION:

1. Receive presentation of the FBID annual report and discuss

2. Open Public Comment

3. Close Public Comment

4. Motion to adopt approve the FBID Annual Report either (1) as presented or (2) with specified modifications. Voice vote.

Business Agenda Item 5i

STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Declare Council’s Intent to Levy the Fortuna Business Improvement District’s Assessment for Fiscal Year 2022-23, Resolution 2022-22
STAFF RECOMMENDATION:

Staff recommends that the Council discuss and consider adopting Resolution 2022- 22 declaring the Council’s intention to levy the Fortuna Business Improvement District (FBID) assessment for the 2022-2023 fiscal year.

EXECUTIVE SUMMARY
The Fortuna Business Improvement District was established in 1990 under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.) Under this law, the Council is required to adopt an annual resolution of intent for each fiscal year in which it levies the assessment.

The resolution of intent must be adopted after the Council reviews and approves the FBID Annual Report, which the Council will consider and approve during this meeting.

The resolution of intent is the first procedural step required to levy the annual assessment. The resolution of intent provides notice of a public hearing to occur on June 21, 2022, at which time business owners may submit written protests, as more particularly set forth in the resolution.

Pursuant to Section 36534 of the Streets and Highways Code, the annual resolution of intention must do all of the following:
(1) Declare the intention of the city council to change the boundaries of the parking and business improvement area, or in any benefit zone within the area, if the annual report proposes a change.
(No such change was proposed and, therefore, the resolution does not propose any boundary modification for this fiscal year.)
(2) Declare the intention of the city council to levy and collect assessments within the parking and business improvement area for the fiscal year stated in the resolution.

Business Agenda Item 5i

(No modification to the existing assessment amount is proposed for this fiscal year.)
(3) Generally describe the proposed improvements and activities authorized by the ordinance enacted pursuant to Section 36527 and any substantial changes proposed to be made to the improvements and activities.
(4) Refer to the parking and business improvement area by name and indicate the location of the area.
(5) Refer to the report on file with the clerk for a full and detailed description of the improvements and activities to be provided for that fiscal year, the boundaries of the area and any benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year. (6) Fix a time and place for a public hearing to be held by the city council on the levy of the proposed assessment for that fiscal year. The public hearing shall be held not less than 10 days after the adoption of the resolution of intention. (The public hearing is noticed for June 21, 2022, which is the date of the next regular meeting.)
(7) State that at the public hearing written and oral protests may be made.

Staff recommends that the Council adopt the Resolution to continue levying the assessment at the same rate as the last fiscal year.

FINANCIAL IMPACT:

FBID collects approximately $62,000 in assessments annually and the city contributes an equal amount for an approximate total $124,000 annually. Of that amount, the core areas receive approximately the following amounts:

Core Area Assessment Distribution to Core
Area (62%)
Citywide Share
(38%)
Citywide $34,500 0 $34,500
Downtown $13,000 $8,060 $4,940
Redwood Village $9,000 $5,580 $3,420
Strongs Creek $5,000 $3,100 $1,900
Total $61,500 $16,740 $44,760
If the Council adopts the resolution, there would be no fiscal impact from the prior years, as the assessment would be maintained at existing rates.

If the Council does not adopt the resolution, the annual assessment would not be authorized, resulting in the loss of the assessment revenue in the estimated amount of $62,000.

Business Agenda Item 5i

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Motion to adopt Resolution 2022-22, and read by title only. Roll Call vote.

ATTACHMENTS:
 Resolution 2022-22, A Resolution Of The City Council Of The City Of Fortuna Declaring Its Intention To Levy An Annual Assessment For 2022-2023 Fiscal Year For The Fortuna Business Improvement District And Fixing The Time And Place Of A Public Meeting And A Public Hearing Thereon And Giving Notice Thereof
RESOLUTION 2022-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR 2022-2023

FISCAL YEAR FOR THE FORTUNA BUSINESS IMPROVEMENT DISTRICT AND

FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC

HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, in 1990, the City Council of the City of Fortuna established the Fortuna Business Improvement District (“FBID”) under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.); WHEREAS, FBID continues to confer a special benefit on those businesses subject to the annual assessment;
WHEREAS, on June 6, 2022, the Council received and filed the annual report of the FBID advisory board without modification [or] as modified by the City Council; WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, the City Council, by this Resolution, provides notice of its intent to levy the annual assessment for the 2022-2023 fiscal year, as more particularly set forth below, and of the time and place for a public hearing on the levy of the proposed assessment.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:

1. The recitals set forth above are true and correct.

2. The City Council does not propose a change to the boundaries of the Fortuna Business Improvement District, or any benefit zone with the district. The boundaries of the district, and each benefit zone therein, shall remain as previously set by ordinance.

3. The City Council intends to levy and collect assessments in the amounts set forth in Ordinance 2022-756, as detailed in the Annual Report.

4. The activities and improvements authorized by section 5.40.070 of the Fortuna Municipal Code shall remain unchanged for the 2022-2023 fiscal year.

5. Reference is made hereto to the Annual Report approved by the Council on June 6, 2022, and on file with the City Clerk for a full and detailed description of the improvements and activities to be provided for the 2022-2023 fiscal year, the boundaries of the area and any benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year.

6. The time and place for a public hearing to be held by the City Council on the levy of the proposed assessment for the 2022-2023 fiscal year are set for June 21, 2022, at 6:00 PM, at City Hall located at 621 11th Street, Fortuna, CA 95540. The clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City not less than seven days before the public hearing.

7. At the time of the public hearing, written and oral protests may be made in the manner required by section 36524 and 36525 of the California Streets and Highways Code.

8. Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest.

9. If written protests are received from the owners of businesses in the district area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to levy the proposed assessment for the 2022-2023 fiscal year shall be taken for a period of one year from the date of the finding of a majority protest by the City Council.

10. This Resolution shall take effect immediately upon adoption by the City Council.

PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 6th day of June, 2022 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
__________________________
Sue Long, Mayor
ATTEST:
__________________________
Siana L. Emmons, City Clerk
Business Agenda Item 5j

STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Proposed Ordinance Amending Fortuna Business Improvement District Regulations
STAFF RECOMMENDATION:

Staff recommends that the Council discuss and consider conducting a first reading, by title only, of Ordinance 2022-756, which amends the Fortuna Business Improvement District (“FBID”) regulations.

EXECUTIVE SUMMARY
The proposed Ordinance is intended to modify the existing FBID regulations contained in the Fortuna Municipal Code (“FMC”). The modifications concern the regulations governing the composition of and appointment to the FBID advisory committee. Staff recommends these modifications to provide the Council more flexibility and oversight over advisory committee appointments. The modifications are necessary following the decision by the Board of Directors of the non-profit Fortuna Business Improvement Corporation to resign effective June 1, 2022. The Board of Directors for the Fortuna Business Improvement Corporation has served as the FBID advisory committee under contract with the City since at least 2000.

In particular, the proposed Ordinance would make the following amendments:

1. Removes the provision stating that the FBID advisory committee also serve as the Board of Directors for the Fortuna Business Improvement Corporation.

2. Authorizes the Council to appoint individuals to the FBID advisory committee, as opposed to the existing regulations in which the Council merely approves nominations by the Board of Directors of the Fortuna Business Improvement Corporation.

3. Replaces inflexible language in the existing regulations as to the compositional makeup of the advisory committee. The proposed Ordinance requires, instead, that the Council prioritize appointments to meet the existing compositional makeup requirements.

4. Implements two-year term limits for advisory committee members, but allows for incumbents to re-apply for additional terms.

Business Agenda Item 5j

5. Includes a provision that the FBID advisory committee will make recommendations and report to the City Council on matters within its purview.

6. Modifies the existing regulations to specify that each core area subcommittee will be comprised of no less than three persons and will be appointed by the FBID advisory committee. The existing regulations do not specify a minimum number of persons for the core area subcommittees.

7. Finds the proposed Ordinance to be exempt from CEQA.

The proposed Ordinance does not propose any change to the assessment amount, boundaries of the district, or the manner in which funds are allocated among the core areas (Downtown, Redwood Village Shopping Center, and Strongs Creek Plaza) and Citywide.

Staff recommends these limited changes to aid in the transition the administration of FBID back to the City following the resignation of the Board of Directors for the Fortuna Business Improvement Corporation and the corporation’s eventual dissolution.

Staff will begin the process of advertising for appointments to the FBID advisory committee in consultation with stakeholders.

DISCUSSION
A. Background and Summary of Existing Regulations
FBID was established by the City for the purpose of imposing benefit assessments and charges on businesses for certain purposes in accordance with the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code §§ 36500 et seq.). The founding Resolution (90-10) and subsequent Ordinance (90-550) included a boundary and the proposed uses for which the revenue was to be used and included the following:
 Promotion of public events which are to take place on or in public places in the District;  Decoration of any public place in the District;
 Furnishing of music in any public place within the District;  The general promotion of business activities within the District; and  Marketing to fill available space, recruiting and expansion of commercial enterprise.

The founding ordinance and resolution also included an assessment schedule for how much each business within the District would be assessed on an annual basis, and how those funds would be distributed between the core areas and the Citywide district. The distribution of the funds between the Core Areas and the Citywide district was divided as follows:
 62% raised within each core area to be used to promote that Core Area  38% raised within each core area to be used to promote the entire community Business Agenda Item 5j

The Parking and Business Improvement Area Law of 1989 requires that the Council appoint an advisory committee to, among other delegated responsibilities, make recommendations to the Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments. Further, the advisory board is responsible for preparing an annual report to the Council that contains the following:
(1) Any proposed changes in the boundaries of the parking and business improvement area or in any benefit zones within the area.
(2) The improvements and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements and the activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The amount of any contributions to be made from sources other than assessments levied.

Since 2000, the City has contracted with the third-party non-profit corporation Fortuna Business Improvement Corporation to administer FBID. The Board of Directors of the Fortuna Business Improvement Corporation also served as the advisory committee.

Under the existing FBID regulations, which are contained in Chapter 5.40 of the Fortuna Municipal Code, the advisory committee is comprised of seven members, as follows:
 One representative from the Downtown Area
 One representative from Redwood Village Shopping Center  One representative appointed Citywide
 One representative appointed from the City Council
 One representative nominated by the Chamber of Commerce  Two people nominated by the other representatives
The existing regulations further require that certain industries be represented on the advisory committee, as follows:
 Three representatives from the retail industry
 Two representatives from the professional and services industry  One representative from the manufacturing or wholesale industry  One representative from the hospitality industry
Business Agenda Item 5j

Under the existing regulations, the Council has the authority to approve nominations made by the Board of Directors of the Fortuna Business Improvement Corporation. The Council does not have the authority to make appointments, under the existing regulations, except for selecting the Council liaison to the advisory committee.

The existing regulations further require that the advisory committee appoint three separate subcommittees, each one representing a core area. The subcommittee is responsible for determining how best to spend the funds allocated to the Core Area.

B. Summary of Proposed Changes
The proposed Ordinance is made necessary following the resignation of the Board of Directors of the Fortuna Business Improvement Corporation. The resignations leave the Council without an advisory committee to make nominations or otherwise perform the responsibilities of FBID.

Accordingly, staff is recommending the changes proposed in the Ordinance to provide the Council more flexibility and oversight over the advisory committee appointment process. The changes are reflected in strikethrough text for all deletions and underlined text for any insertions to the existing regulations.

Importantly, the proposed Ordinance does not propose any change to the assessment amount, boundaries of the district, or the manner in which funds are allocated among the Core Areas (Downtown, Redwood Village Shopping Center, and Strongs Creek Plaza) and Citywide.

The proposed Ordinance does make the following changes:
 Deletes the requirement that members of the advisory committee serve as members of the Board of Directors of the Fortuna Business Improvement Corporation. As noted, the Board of Directors has resigned, and the Fortuna Business Improvement Corporation is no longer a functioning corporation capable of performing its obligations to administer FBID under contract with the City.
 The proposed Ordinance maintains the requirement of a seven-member advisory committee, but amends the existing regulations to allow the Council to appoint all members.
 The proposed Ordinance maintains the compositional make up for the advisory committee, but it removes the mandatory language, in favor of preferential language, to provide flexibility in instances where there is insufficient interest to meet these requirements. Staff believes this change is advisable to provide the Council more discretion in making appointments and to avoid turning away interested and qualified volunteers due to a strict quota system.
 The proposed Ordinance implements term limits of two years, but without restriction on an incumbent’s ability to apply for re-appointment for an unlimited number of terms. Staff Business Agenda Item 5j

believes this is important to maintain a regular advertisement and appointment process to generate more participation and new perspectives.
 The proposed Ordinance includes an express provision that the advisory committee make recommendations and report to the Council on the general expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments, among other responsibilities as may be directed by the Council or as required by law.
 The proposed Ordinance includes a provision that each Core Area subcommittee will be comprised of at least three members, each of whom will be appointed by the advisory committee.

FINANCIAL IMPACT:

No fiscal impact.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Motion to introduce and conduct first reading, by title only, of Ordinance 2022-756.

Roll Call vote.

ATTACHMENTS:
 Ordinance 2022-756, An Ordinance Of The City Council Of The City Of Fortuna, California Amending Chapter 5.40 – Fortuna Business Improvement District – Of The Fortuna Municipal Code And Determining The Ordinance To Be Exempt From CEQA ORDINANCE 2022-756

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORTUNA, CALIFORNIA AMENDING CHAPTER 5.40 – FORTUNA BUSINESS IMPROVEMENT DISTRICT – OF THE FORTUNA MUNICIPAL CODE AND DETERMINING THE

ORDINANCE TO BE EXEMPT FROM CEQA
WHEREAS, the City of Fortuna, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, by way of Ordinance 90-550 adopted on May 21, 1990, the City Council established the Fortuna Business Improvement District (“FBID”) pursuant to the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code, §§ 36500 et seq.); and WHEREAS, since its inception in 1990, FBID has existed to promote the economic revitalization and physical maintenance of the business districts in order to create jobs, promote tourism, support existing businesses, and attract new businesses; and
WHEREAS, FBID’s activities are funded through a limited assessment upon businesses located and operating within the district and, from time-to-time, from general fund revenues as determined annually by the City Council; and
WHEREAS, by way of this Ordinance, the City Council desires to make limited changes to Chapter 5.40 of the Fortuna Business Improvement District as to make up and qualifications of the advisory committee; and
WHEREAS, the City Council has considered the staff report, supporting documents, public testimony, and all appropriate information that has been submitted with this Ordinance; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FORTUNA DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The above recitals are each incorporated by reference and adopted as findings by the City Council.

SECTION 2. CEQA. The City Council finds, pursuant to the California Environment Quality Act (CEQA), Guidelines section 15378, that this Ordinance is not a Project as defined by CEQA.

Furthermore, the Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) as it is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Therefore, adoption of this Ordinance is statutorily exempt from CEQA.

SECTION 3. Fortuna Municipal Code Amendment. Section 5.40.050 – Advisory Committee – of the Fortuna Municipal Code is hereby amended to delete the text shown as strikethrough text below and to add the text in underlined font:

5.40.050 Advisory committee.

A. The authorized number of members of the advisory committee of the district shall be seven unless modified by an amendment of this chapter. The City Council shall appoint the advisory committee and prioritize appointments such that the advisory committee is comprised of the following appointments: The advisory committee shall be represented by the following:

1. Downtown Core Area, one representative;

2. Redwood Village Shopping Center Core Area, one representative;

3. Strongs Creek Plaza Core Area, one representative;

4. City of Fortuna Council Liaison, one representative;

5. Citywide, one representative;

6. Fortuna Chamber of Commerce, one representative;

7. One person nominated by the six representatives identified above.

B. The city council, in making appointments to the advisory committee, shall endeavor to make appointments so that the following categories of businesses are The following types of businesses shall be represented on the advisory committee:

1. Retail, three representatives;

2. Professional and service, two representatives;

3. Manufacturing/wholesale, one representative; and

4. Hospitality, one representative.

C. If a person to represent the above business categories cannot be found, the advisory committee shall nominate a representative from one of the other categories.

D. The advisory committee members shall serve as the members of the Fortuna Business Improvement Corporation.

E. The city council shall approve all nominations.

C. Each member of the advisory committee shall serve a two-year term and may be eligible for re-appointment. The city council may stagger terms of the advisory committee members by resolution.

D. The advisory committee shall make recommendations and report to the city council on the general expenditure of revenues derived from the levy of assessments pursuant to this Chapter, on the classification of businesses, as applicable, and on the method and basis of levying the assessments, among other responsibilities as may be directed by the city council or as required by law.

SECTION 4. Fortuna Municipal Code Amendment. Section 5.40.060 – Allocation of funds – of the Fortuna Municipal Code is hereby amended to delete the text shown as strikethrough text below and to add the text in underlined font below:

5.40.060 Allocation of funds.

A total of 62 percent of the funds raised within each of the three core areas identified in Exhibit A attached to the ordinance codified in this chapter and found on file in the office of the city clerk shall remain in such area. These funds shall be used to promote such area. The advisory committee shall appoint a subcommittee of no less than three persons from each individual core area to determine how the funds are spent within the core area and to promote the purposes of the district within the core area. The advisory committee shall act as the subcommittee until a subcommittee is appointed or in the event of a vacancy causing the number of subcommittee members to be less than three.

The funds raised within the citywide area and the remaining 38 percent of the funds raised within each of the three core areas shall be used to promote the entire community. The advisory committee shall determine how these funds are spent.

SECTION 5. Effective Date. This Ordinance shall become effective on the 31st day after its adoption by the City Council. The Clerk shall cause this Ordinance to be published in the manner required by Government Code section 36933.

SECTION 6. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.

INTRODUCED and FIRST READING CONDUCTED at a regular meeting of the City Council of the City of Fortuna, California, on this 6th day of June 2022 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

Sue Long, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
SECOND READING CONDUCTED, PASSED, and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this ____ day of ____________, 2022 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

Sue Long, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
Business Agenda Item 5j

282077.v2

STAFF REPORT
City Council Business Agenda Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Mandatory Organic Waste Disposal Ordinance
STAFF RECOMMENDATION:

Conduct second reading and adopt Ordinance 2022-755 adding Chapter 8.14 to the Fortuna Municipal Code establishingmandatoryorganicwaste disposalreduction regulationstoimplement and enforce CalRecycle organics regulations and SB 1383.

EXECUTIVE SUMMARY:

In September 2016, Governor Brown signed into law SB 1383 (Lara, Chapter 395, Statutes of 2016), establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP) in varioussectors of California's economy. The new law codifies the California Air Resources Board's Short-Lived Climate Pollutant Reduction Strategy, established pursuant to SB 605 (Lara, Chapter 523, Statutes of 2014), to achieve reductions in the statewide emissions of short-lived climate pollutants. Actions to reduce short-lived climate pollutants are essential to address the many impacts of climate change on human health, especially in California's most at-risk communities, and on the environment.

From 2016-2020, the California Department of Resources, Recycling and Recovery (CalRecycle) worked to develop regulations to achieve the goals of SB 1383. These new regulations were finalized by CalRecycle in November 2020. The regulations went into effect January 1, 2022 and every city and county in California is required to have an enforceable SB 1383 Ordinance in place by this date. The law establishes statewide targets to reduce the amount of organic waste disposed of in landfills (50% reduction by 2020 and 75% by 2025). It also sets a goal to rescue at least 20% of currently disposed edible food by 2025 and redirect that food to people in need.

The state defines “Organic waste” as food, landscape and pruning trimmings, lumber, wood, manure, cardboard, paper products, printing and writing paper, and other plant and animal- based products. The SB 1383 regulations require that jurisdictions conduct education and outreach on organics recycling to all residents, businesses (including those that generate edible food that can be donated), haulers, solid waste facilities, and local food banks and other food recovery organizations.

Business Agenda Item 5j

282077.v2
With the delaysin finalizing the SB 1383 regulations, CalRecycle has prioritized three components of the regulations to be in place prior to January 2022: an enforceable ordinance, an edible food recovery program, and mandatory organics collection. As a response to the challenges created by the COVID-19 pandemic and the associated delays in rulemaking for SB 1383, Governor Newsom signed Senate Bill 619, which allows agencies to request that CalRecycle waive finesfor non-compliance by January1, 2022. The fines would only be waived for agencies that have a "Notice of Intent to Comply" (NOIC) on file with CalRecycle by March 2022.

The City Council authorized the City Manager to submit the Notice of Intent to comply on February 22, 2022, which was submitted by the City Manager on February 24, 2022.

There are many parts of SB 1383 that will take time and effort to develop and implement. The City is working on an Implementation Plan in collaboration with the HWMA and other jursidictions in Humboldt County. A part of that effort was the development of a roadmap of options for how we might look to identify the requirements of the various portions of the new regulations. The City will have to make changes to the City's waste collection, recycling, and organics programs in the next few years to satisfy the requirements of SB 1383.

Ordinance 2022-755 will satisfy the City’s requirement to adopt an enforceable ordinance, but delay implementation of the requirements until January 1, 2023. If changes need to be made before the effective date, or the effective date is changed, that will remain an option for the City.

It is important for the City to adopt this ordinance now so that the City can qualify for the local assistance grant that it applied for to fund some of the planning work required to comply with SB 1383. The City will receive a minimum of $20,000 that will fund staff and consultant efforts currently underway, provided that an ordinance is adopted prior to June 14, 2023.

A workshop was held on May 2, 2022, at which the council reviewed the draft ordinance and received input from the public. Linda Wise with Recology was also present, and answred questions regarding the draft ordinance and how the ordinance would impact collection programs within the City.

The City Council conducted the first reading of the draft ordinance on May 16, 2022.

Gary Bell of the Colantuono, Highsmith, & Whatley Law firm that has been assisting the City with the development of the draft ordinance and negotiating the franchise agreement will be on hand to answer questions regarding the draft ordinance.

The next step after adopting the ordinance will be for the City to update the solid waste franchise agreement with Recology to reflect SB 1383 requirements that the City will be requesting they complete as a part of their contract with the City. As a part of that process, it will be necessary to review potential rate changes to support the new organic collection and recycling requirements.

Additionally, staff is considering adding a staff position to the city organizational chart to be responsible for activities necessary for compliance with SB 1383.

Some of the key components of the legislation related to the ordinance are described in more detail below.

Business Agenda Item 5j

282077.v2
SUMMARY OF KEY COMPONENTS OF SB 1383
Organics and Recycling Collection
Jurisdictions are required to provide organic waste collection to all residents and businesses, which means providing service automatically and not relying on the generator to subscribe.

SB 1383 requires specific colors for waste collection containers: trash containers must be grey or black, organics containers must be green, and recycling containers must be blue. All new containers must be clearly labeled with what does and does not go into them. • Beginning in 2022, SB 1383 requires every jurisdiction to provide organic waste collection servicesto all residents and businesses.Thisis what we referto as automatically providing service, mandatory service, or universal service, in which the resident or businessis automatically provided the service. The City has identified January 1, 2023 as the intended date to comply with this requirement in the NOIC, as equipment is not available to be able to collect this waste until then, and there is currently no place to take organic waste to for recycling.
• The regulations require contamination monitoring in curbside collection containers. This will be delegated to the City’s waste hauler in an update of the Franchise agreement.

Edible Food Recovery
The City must identify the edible food recovery generators that are required to implement edible food recovery programs, connect them with local food recovery organizations, provide annual outreach to the edible food generators about their requirements under SB 1383, and perform annual inspections to ensure they have contracts in place with edible food recovery organizations, and are keeping records of all recovered edible food
Education and Outreach
The law will require the City to conduct specific outreach to residents, schools, businesses, edible food generators, on an annual basis. The outreach must be translated into multiple languages, based on the most recent census results.

Procurement Requirement
Beginning January 1, 2022, the City must annually procure a certain quantity of recovered organic waste products. Jurisdictions can fulfill their target by procuring recycled organic waste products like compost, mulch, renewable natural gas (RNG), electricity, and recycled-content paper and paper products. This requirement has also been delayed and documented in the NOIC submitted by the City and will be implemented at a future date.
• Organic Waste Product Requirements
Each jurisdiction will have a minimum procurement target for recycled organic waste products that is calculated based on its population. CalRecycle will provide a calculator for a jurisdiction to use to calculate progress towards meeting their target. CalRecycle will notify jurisdictions of their target prior to January 1, 2022. This component of the regulation is subject to significant future regional discussion and coordination as most Business Agenda Item 5j

282077.v2
jurisdictions are unclear as to the mechanisms and operational capacity to procure, use, and place large quantities of compost or mulch.
• Recycled-Content Paper and Paper Product Requirements All City departments that make paper purchases will be required to purchase and keep purchase records for paper products that contain postconsumer recycled content and are recyclable.

Capacity Planning
The City must collaborate with the County and the other jurisdictions located within the county to determine the necessary organic waste recycling and edible food recovery capacity needed to divert organic waste and edible food from the landfill as required under the regulations.

Jurisdictions must do an annual compliance review of commercial businesses to ensure they are subscribed to collection service. This requirement was previously established by California's Mandatory Commercial Organics Recycling law (AB 1826, Chesbro, Chapter 727, Statutes of 2014).

Contamination Monitoring
The regulations require waste audits to be conducted on each trash, recycling, and organics route regularly, to check bins for contamination (recycling and organics not being sorted correctly).

Specific recording, reporting and follow-up is required for any contamination that is found. This will likely be included in an updated franchise agreement with Recology.

In addition to the main six elements outlined above the City is required to implement enforcement mechanism and provide annual reports to CalRecycle regarding our compliance.

RECOMMENDED COUNCIL ACTION:

1. Open the Public Hearing

2. Receive staff presentation and review Council questions with staff

3. Open Public Comment

4. Close Public Comment

5. Motion to conduct second reading and adopt Ordinance 2022-755, by title only. Roll Call vote.

ATTACHMENTS:
 Ordinance No. 2022-755, An Ordinance Of The City Council Of The City Of Fortuna, California Amending Title 8 – Health and Safety Of The Fortuna Municipal Code By Adding Chapter 8.14– Organic Reduction and Recycling Ordinance -1-
ORDINANCE 2022-755

ORGANICS REDUCTION AND RECYCLING ORDINANCE

TABLE OF CONTENTS
SECTION 1. CODE AMENDMENT. ORGANICS REDUCTION AND RECYCLING ORDINANCE..........................................................................................................................................2

8.14.010. PURPOSE AND FINDINGS............................................................................................. 2

8.14.020. TITLE OF ORDINANCE.................................................................................................. 3

8.14.030. DEFINITIONS ................................................................................................................... 3

8.14.040. REQUIREMENTS FOR SINGLE-FAMILY GENERATORS ................................... 12

8.14.050. REQUIREMENTS FOR COMMERCIAL BUSINESSGENERATORS INCLUDING MULTI-FAMILY RESIDENTIAL DWELLINGS....................................................................... 13

8.14.060. WAIVERS FOR GENERATORS................................................................................... 16

8.14.070. REQUIREMENTS FOR COMMERCIAL EDIBLE FOODGENERATORS ........... 17

8.14.080. REQUIREMENTS FOR FOOD RECOVERYORGANIZATIONS AND SERVICES ............................................................................................................................................................ 19

8.14.090. REQUIREMENTS FOR REGULATED HAULERS ANDFACILITY OPERATORS ............................................................................................................................................................ 21

8.14.100. REQUIREMENTS FOR SELF-HAULERS .................................................................. 22

8.14.110. COMPLIANCE WITH CALGREEN RECYCLING REQUIREMENTS ................. 23

8.14.120. Model Water Efficient Landscaping Ordinance Requirements ................................. 24

8.14.130. DELEGATION OF AUTHORITY................................................................................. 25

8.14.140. INSPECTIONS AND INVESTIGATIONS.................................................................... 25

8.14.150. ENFORCEMENT ............................................................................................................ 26

8.14.160. LOCAL REGULATION AND OPT-IN PROVISIONS............................................... 27 SECTION 2. CODE AMENDMENT …………………..…………………………………………………27 SECTION 3. SEVERABILITY……………………………………………………………………27
SECTION 4. EFFECTIVE DATE AND REPEAL OF ORDINANCE 2022-755 ...........................27 -2-
ORDINANCE 2022-755

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORTUNA, ORGANICS

REDUCTION AND RECYCLING
The City Council of the City of Fortuna hereby ordains as follows:

SECTION 1. CODE AMENDMENT. ORGANICS REDUCTION AND RECYCLING

ORDINANCE
Chapter 8.14 of the Fortuna Municipal Code is hereby added to read as follows.

8.14.010. PURPOSE AND FINDINGS
(a) The purpose of this chapter is to reduce the amount of organic and recyclable materials deposited in landfills from commercial and residential generators. This Ordinance seeks to provide a single comprehensive framework to achieve its purposes and comply with various state laws as set forth below.
(b) The CITY has the power to enact this Ordinance pursuant to its police powers. (c) State recycling law, Assembly Bill 939 of 1989, the California Integrated Waste Management Act of 1989 (approved by the Governor of the State of California on September 29, 1989, which among other things, added Division 30 (Section 40000, et seq.) to the Public Resources Code, as amended, supplemented, superseded, and replaced from time to time), requires cities and counties to reduce, reuse, and recycle (including composting) Solid Waste generated in their jurisdictions to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment.
(d) State recycling law, Assembly Bill 341 of 2011 (approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, as amended, supplemented, superseded and replaced from time to time), places requirements on businesses and multi-family property owners that generate a specified threshold amount of Solid Waste to arrange for recycling service and requires jurisdictions to implement a Mandatory Commercial Recycling program.
(e) State organics recycling law, Assembly Bill 1826 of 2014 (approved by the Governor of the State of California on September 28, 2014, which added Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time), requires businesses and multi-family property owners that generate a specified threshold amount of Solid Waste, recycling, and Organic Waste per week to arrange for recycling service for those materials, requires counties and cities to implement a recycling program to divert Organic Waste from businesses subject to the law, and to implement a Mandatory -3-
Commercial Organics Recycling program.
(f) State organics recycling law, Senate Bill 1383 of 2016, the Short-lived Climate Pollutant Reduction Act of 2016 (approved by the Governor of the State of California on September 19, 2016, which added Sections 39730.5, 39730.6, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, as amended, supplemented, superseded, and replaced from time to time), took effect on January 1, 2017 and sets Statewide Organic Waste disposal reduction targets of 50 percent by 2020 and 75 percent by 2025, based on the 2014 organics waste disposal baseline, set forth in Section 39730.6 of the Health and Safety Code, and requires CalRecycle to develop regulations to reduce organics in landfills as a source of methane. The SB 1383 Regulations place requirements on multiple entities, including counties, cities, residential households, Commercial Businesses (including Multi-Family Residential Dwellings), Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery Organizations, and Food Recovery Services to support achievement of statewide Organic Waste disposal reduction targets with compliance required beginning January 1, 2022.
(g) In furtherance of the food recovery objectives of the laws noted above and to reduce legal risks associated with food recovery, the State food donation law, Assembly Bill 1219 of 2017, the California Good Samaritan Food Donation Act of 2017 (approved by the Governor of the State of California on October 9, 2017, which amended Section 1714.25 of the Civil Code, amended Section 58502 of, and repealed Section 58506 of, the Food and Agricultural Code, and amended Sections 114432, 114433, and 114434 of, and added Section 114435 to, the Health and Safety Code, as amended, supplemented, superseded and replaced from time to time), provides additional protections for entities that donate and distribute food for human consumption.
(h) By January 1, 2022, the SB 1383 Regulations require jurisdictions to adopt and enforce an ordinance or other enforceable mechanism to implement relevant provisions of the SB 1383 Regulations concerning regulation of organic waste collection services, generators of organic waste, waste haulers, and generators and processors of edible food, together with enforcement mechanisms and administrative civil penalties for violations of local regulations.

8.14.020. TITLE OF ORDINANCE
This Ordinance is titled “Organics Reduction and Recycling Ordinance”.

8.14.030. DEFINITIONS
The following definitions govern the use of terms in this Ordinance:
(a) “Humboldt County” means all of the geographical areas located within the unincorporated areas of Humboldt County, as well as those incorporated areas of Humboldt County that have opted-in to this ordinance.
(b) “Back-Haul” means generating and transporting Organic Waste to a destination owned and -4-
operated by a generator using the generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A).
(c) “C&D” means construction and demolition debris.
(d) “CalRecycle” means California's Department of Resources Recycling and Recovery, which is the state agency designated with responsibility for developing, implementing, and enforcing the SB 1383 Regulations.
(e) “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this Ordinance are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR). (f) “Certification of Recycling Service Form” means documentation certifying that a Commercial Business does not subscribe to collection services for Compost Containers and/or Recycling Containers because the Commercial Business has arranged for collection of its Source Separated Compost Container Organic Waste and/or Source Separated Recyclable Materials by self-hauling, Back-Haul, contracting with a third party hauler (provided that such contract does not violate any exclusive rights granted to any Regulated Hauler by the City), or shares service with another Commercial Business. (g) “CITY” means the City of Fortuna.
(h) “Commercial Business” or “Commercial” means a firm, partnership, proprietorship, jointstock company, corporation, institution or association (whether incorporated or unincorporated or for-profit or nonprofit), strip mall, industrial facility, or a Multi- Family Residential Dwelling, or as otherwise defined in 14 CCR Section 18982(a)(6). (i) “Commercial Edible Food Generator” includes a Tier One or a Tier Two Commercial Edible Food Generator as defined herein or as otherwise defined in 14 CCR Section 18982(a)(73) and (a)(74). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a)(7).
(j) “Community Composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4); or, as otherwise defined by 14 CCR Section 18982(a)(8).
(k) “Compliance Review” means a review of records by the Enforcement Agency to evaluate compliance with this Ordinance.
(l) “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the effective date of this chapter, that “Compost” means the product resulting from the controlled biological decomposition of organic Solid Waste that is Source Separated from the municipal Solid Waste stream, or which is separated at a centralized facility. -5-
(m) “Compost Container” has the same meaning as “Green Container” in 14 CCR Section 18982(a)(29) and shall be used for the purpose of storage and collection of Source Separated Compost Container Organic Waste.
(n) “Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the ASTM D6400 and D6868 standards for compostability and are certified by the Biodegradable Products Institute (BPI) or similar third-party approved by the CITY, and are approved by the CITY for placement in the Compost Container. (o) “Container Contamination” or “Contaminated Container” means a container, regardless of type, that contains Prohibited Container Contaminants, or as otherwise defined in 14 CCR Section 18982(a)(55).
(p) “Designee” means an entity that the CITY contracts with or otherwise arranges to carry out or assist with any of CITY’s responsibilities for compliance with the SB 1383 Regulations or administration or enforcement of this chapter. A Designee may be a government entity, a private entity, or a combination of those entities.
(q) “Edible Food” means food intended for human consumption, or as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this chapter or as otherwise defined in 14 CCR Section 18982(a)(18), “Edible Food” is not Solid Waste if it is recovered and not discarded. Nothing in this Ordinance or in 14 CCR, Division 7, Chapter 12 requires or authorizes the Recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code, as codified in the Health and Safety Code Section 113700, et seq.
(r) “Enforcement Action" means an action of the City to address non-compliance with this Ordinance including, but not limited to, issuing administrative citations, fines, penalties, or using other remedies.
(s) “Enforcement Agency” means an entity with the authority to enforce part or all of this chapter as specified herein. Employees and agents of an Enforcement Agency may carry out inspections and enforcement activities pursuant to this Ordinance. Nothing in this Ordinance authorizing an entity to enforce its terms shall require that entity to undertake such enforcement except as agreed to by that entity.
(t) “Excluded Waste” means hazardous substances, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the CITY and its generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in the reasonable opinion of the CITY or a Regulated Hauler operating in that CITY’s jurisdiction would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose the CITY or a Regulated Hauler to potential liability; but not including de minimis volumes or concentrations of waste of a type and -6-
amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the Public Resources Code. Excluded Waste does not include used motor oil and filters, household batteries, universal wastes, and/or latex paint when such materials are defined as allowable materials for collection through the CITY’s collection programs and the generator or customer has properly placed the materials for collection pursuant to instructions provided by the CITY or the Regulated Hauler providing service to the generator. (u) “Food Distributor” means a company that distributes food to entities including, but not limited to, Supermarkets and Grocery Stores, or as otherwise defined in 14 CCR Section 18982(a)(22).
(v) “Food Facility” has the same meaning as in Section 113789 of the Health and Safety Code. (w) “Food Recovery” means actions to collect and distribute food for human consumption that otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24). (x) “Food Recovery Organization” means an entity that engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities or as otherwise defined in 14 CCR Section 18982(a)(25), including, but not limited to:
(1) A food bank as defined in Section 113783 of the Health and Safety Code; (2) A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,
(3) A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.

A Food Recovery Organization is not a Commercial Edible Food Generator for the purposes of this chapter and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7). If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this Ordinance.
(y) “Food Recovery Service” means a person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery, or as otherwise defined in 14 CCR Section 18982(a)(26). A Food Recovery Service is not a Commercial Edible Food Generator for the purposes of this chapter and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
(z) “Food Scraps” means all edible or inedible food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, coffee grounds, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps.
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(aa) “Food Service Provider” means an entity primarily engaged in providing food services to institutional, governmental, Commercial, or industrial locations of others based on contractual arrangements with these types of organizations, or as otherwise defined in 14 CCR Section 18982(a)(27).
(bb) “Food-Soiled Paper” is compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, napkins, and pizza boxes, and is approved by the CITY for placement in the Compost Container. (cc) “Food Waste” means Food Scraps, Food-Soiled Paper, and Compostable Plastics in combination or separately.
(dd) “Grocery Store” means a store primarily engaged in the retail sale of canned food; dry goods; fresh fruits and vegetables; fresh meats, fish, and poultry; and any area that is not separately owned within the store where the food is prepared and served, including a bakery, deli, and meat and seafood departments, or as otherwise defined in 14 CCR Section 18982(a)(30).
(ee) “Hauler Route” means the designated itinerary or sequence of stops for each segment of the CITY’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5). (ff) “Health Facility” has the same meaning as in Section 1250 of the Health and Safety Code. (gg) “High Diversion Organic Waste Processing Facility” means a facility that is in compliance with the reporting requirements of 14 CCR Section 18815.5(d) and meets or exceeds an annual average mixed waste organic content Recovery rate of 50 percent between January 1, 2022 and December 31, 2024, and 75 percent after January 1, 2025, as calculated pursuant to 14 CCR Section 18815.5(e) for Organic Waste received from the “Mixed waste organic collection stream” as defined in 14 CCR Section 17402(a)(11.5); or, as otherwise defined in 14 CCR Section 18982(a)(33).
(hh) “Hotel” has the same meaning as in Section 17210 of the Business and Professions Code. (ii) “Inspection” means an Enforcement Agency’s electronic or on-site review of records, containers, and an entity’s collection, handling, recycling, or landfill disposal of Organic Waste or Edible Food handling to determine if the entity is complying with requirements set forth in this Ordinance, or as otherwise defined in 14 CCR Section 18982(a)(35). (jj) “Landfill Container” has the same meaning as “Gray Container” in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and collection of Landfill Container Waste.
(kk) “Landfill Container Waste” means Solid Waste that is collected in a Landfill Container that is part of a three-container or three-plus container collection service that prohibits the placement of Organic Waste in the Landfill Container as specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.5). (Three container collection service refers to service collecting materials in Landfill Containers, Organics Containers, and Recycling Containers.)
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(ll) “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) shall apply to this Ordinance. For the purposes of this definition of Large Event, “local agency” means all public agencies except those that are not subject to the regulatory authority of the CITY.
(mm) “Large Venue” means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation. For purposes of this chapter and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this chapter and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this Ordinance. (nn) “Mixed Waste Organic Collection Stream” or “Mixed Waste” means Organic Waste collected in a container that is required by 14 CCR Sections 18984.1, 18984.2 or 18984.3 to be taken to a High Diversion Organic Waste Processing Facility or as otherwise defined in 14 CCR Section 17402(a)(11.5).
(oo) “Multi-Family Residential Dwelling” or “Multi-Family” means of, from, or pertaining to residential premises with five or more dwelling units. Multi-Family premises are considered a distinct type of Commercial Business for the purposes of implementing this Ordinance. Consistent with the SB 1383 Regulations, residential premises that consist of fewer than five units are not “Multi-Family” and instead are “Single-Family” for the purposes of implementing this Ordinance. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered other types of Commercial Businesses.
(pp) “Non-Compostable Paper” includes, but is not limited to, paper that is coated, lined or treated with a non-compostable material, or otherwise unacceptable to the compostable materials handling facility processing the material.
(qq) “Non-Organic Recyclables” means non-putrescible and non-hazardous recyclable materials including but not limited to recyclable food and beverage glass containers, metal (aluminum and steel) food and beverage cans, HDPE (high density polyethylene) bottles and PET (polyethylene terephthalate) bottles, and other materials specified in 14 CCR Section 18982(a)(43).
(rr) “Notice of Violation” means a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties, or as otherwise defined in 14 CCR -9-
Section 18982(a)(45) or further explained in 14 CCR Section 18995.4. (ss) “Organic Waste” means Solid Waste containing material originated from living organisms and their metabolic waste products, including but not limited to food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, Paper Products, Printing and Writing Paper, manure, biosolids, digestate, and sludges or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined by 14 CCR Section 18982(a).
(tt) “Organic Waste Generator” means a Person or entity that is responsible for the initial creation of Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(48). (uu) “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51).
(vv) “Person” includes an individual, firm, limited liability company, association, partnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever, or as otherwise defined in Public Resources Code Section 40170.
(ww) “Printing and Writing Paper” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54).
(xx) “Prohibited Container Contaminants” includes all of the following: (i) materials placed in the Recycling Container that are not identified as acceptable Source Separated Recyclable Materials for the CITY’s Recycling Container; (ii) materials placed in the Compost Container that are not identified as acceptable Source Separated Compost Container Organic Waste for the CITY’s Compost Container; (iii) materials placed in the Landfill Container that are acceptable Source Separated Recyclable Materials and/or acceptable Source Separated Compost Container Organic Waste that can be placed in the CITY’s Compost Container and/or Recycling Container; and, (iv) Excluded Waste placed in any container.
(yy) “Recovery” means any activity or process described in 14 CCR Section 18983.1(b), or as otherwise defined in 14 CCR Section 18982(a)(49).
(zz) “Recycling Container” has the same meaning as “Blue Container” in 14 CCR Section 18982(a)(5) and shall be used for the purpose of storage and collection of Source Separated Recyclable Materials and Source Separated Recycling Container Organic Waste. (aaa) “Regulated Hauler” means a Person that collects Solid Waste (other than Solid Waste generated by a permitted building project) originating in the CITY from Compost Containers, Recycling Containers, and/or Landfill Containers, and does so under a contract, franchise agreement, or permit with the CITY..
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(bbb) “Remote Monitoring” means the use of mechanical or electronic devices to identify the types of materials in Recycling Containers, Compost Containers, and/or Landfill Containers for purposes of identifying the quantity of materials in containers (level of fill) and/or presence of Prohibited Container Contaminants.
(ccc) “Restaurant” means an establishment primarily engaged in the retail sale of food and drinks for on-premises or immediate consumption, or as otherwise defined in 14 CCR Section 18982(a)(64).
(ddd) “Route Review” means a visual Inspection of containers along a Hauler Route for the purpose of determining Container Contamination, and may include mechanical or electronic Inspection methods such as the use of cameras, or as otherwise defined in 14 CCR Section 18982(a)(65).
(eee) “SB 1383” means Senate Bill 1383 of 2016, the Short-lived Climate Pollutant Reduction Act of 2016.
(fff) “SB 1383 Regulations” means or refers to, for the purposes of this chapter, the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of regulations of 14 CCR and 27 CCR.
(ggg) “Self-Hauler” means a Person, who hauls Solid Waste, Organic Waste or recyclable material they have generated to another Person for disposition as allowed by the CITY and otherwise in accordance with all applicable laws. Self-Hauler also includes a Person who Back-Hauls such materials, and as otherwise defined in 14 CCR Section 18982(a)(66). (hhh) “Single-Family” means, for purposes of this chapter, of, from, or pertaining to any residential premises with fewer than five units.
(iii) “Solid Waste” has the same meaning as defined in Public Resources Code Section 40191, which defines Solid Waste as all putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semi-solid wastes, and other discarded solid and semisolid wastes, with the exception that Solid Waste does not include any of the following wastes:
(1) Hazardous waste, as defined in the Public Resources Code Section 40141. (2) Radioactive waste regulated pursuant to the State Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the Health and Safety Code).
(3) Medical waste regulated pursuant to the State Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104 of the Health and Safety Code). Untreated medical waste shall not be disposed of in a Solid Waste landfill, as defined in Public Resources Code Section 40195.1. Medical waste that -11-
has been treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the Public Resources Code.
(jjj) “Source Separated” means materials, including commingled recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing those materials for recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products, which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of this chapter, Source Separated shall include separation of materials by the generator, property owner, property owner’s employee, property manager, or property manager’s employee into different containers for the purpose of collection such that Source Separated materials are separated from Landfill Container Waste or other Solid Waste for the purposes of collection and processing.
(kkk) “Source Separated Compost Container Organic Waste” means Source Separated Organic Waste that can be placed in a Compost Container that is specifically intended for the separate collection of Organic Waste by the generator, excluding Source Separated Recycling Container Organic Waste, carpets, Non- Compostable Paper, and textiles. (lll) “Source Separated Recyclable Materials” means Source Separated Non-Organic Recyclables and Source Separated Recycling Container Organic Waste. (mmm)“Source Separated Recycling Container Organic Waste” means Source Separated Organic Wastes that can be placed in a Recycling Container that is limited to the collection of those Organic Wastes and Non-Organic Recyclables, as defined herein or as otherwise defined in Sections 18982(a)(43) and 18982(a)(46). Source Separated Recycling Container Organic Waste shall include materials as determined by the CITY and includes unsoiled Paper Products and Printing and Writing Paper.
(nnn) “Supermarket” means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more, and which sells a line of dry grocery, canned goods, or nonfood items and some perishable items, or as otherwise defined in 14 CCR Section 18982(a)(71).
(ooo) “Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following:
(1) Supermarket.
(2) Grocery Store with a total facility size equal to or greater than 10,000 square feet. (3) Food Service Provider.
(4) Food Distributor.
(5) Wholesale Food Vendor.
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If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Ordinance.
(ppp) “Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following:
(1) Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet.
(2) Hotel with an on-site Food Facility and 200 or more rooms. (3) Health facility with an on-site Food Facility and 100 or more beds. (4) Large Venue.
(5) Large Event.

If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition as to entities subject to the regulatory authority of the CITY, the definition in 14 CCR Section 18982(a)(74) shall apply to this Ordinance. (qqq) “Wholesale Food Vendor” means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination, or as otherwise defined in 14 CCR Section 189852(a)(76).

8.14.040. REQUIREMENTS FOR SINGLE-FAMILY GENERATORS
Except Single-Family Organic Waste Generators that meet the Self-Hauler requirements in Section

8.14.100 and/or that are located in a census tract for which CalRecycle has issued a low population waiver (as described in 14 CCR Section 18984.12), Single-Family generators shall:
(a) Be subscribed to the collection service(s) approved by the CITY for Compost Containers, Recycling Containers, and Landfill Containers. The CITY shall have the right to review the number and size of a generator’s containers to evaluate the adequacy of capacity provided for each type of collection service and to review the separation of materials and containment of materials. A Single-Family generator shall adjust its service level for its collection services as requested by the CITY in order to meet the standards set forth in this Ordinance. Generators may manage their Organic Waste by preventing or reducing their Organic Waste, managing Organic Waste on site, and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c) to the extent permitted by other applicable laws.
(b) Participate in the Organic Waste collection service(s) approved by the CITY by placing designated materials in designated containers as described below, and not placing Prohibited Container Contaminants in collection containers. Generator shall place Source Separated Compost Container Organic Waste, including Food Waste, in the Compost Container; Source Separated Recyclable Materials in the Recycling Container; and Landfill -13-
Container Waste in the Landfill Container; in each case, solely to the extent such materials are acceptable materials in the applicable container under the franchise agreement between the CITY and a Regulated Hauler. Generators shall not place materials designated for the Landfill Container into the Compost Container or the Recycling Container. (c) The Enforcement Agency for the provisions of this section is the CITY and any other Designee of the CITY.

8.14.050. REQUIREMENTS FOR COMMERCIAL BUSINESS GENERATORS

INCLUDING MULTI-FAMILY RESIDENTIAL DWELLINGS
Commercial Business Organic Waste Generators, including Multi-Family Residential Dwellings, shall:
(a) Except Commercial Businesses that meet the Self-Hauler requirements in Section

8.14.100 and/or that are located in a census tract for which CalRecycle has issued a low population waiver (as described in 14 CCR Section 18984.12):
(1) Be subscribed to collection service(s) approved by the CITY for Compost Containers, Recycling Containers, and Landfill Containers and comply with requirements of those services as described below. The CITY shall have the right to review the number and size of a generator’s containers and frequency of collection to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials; and, Commercial Businesses shall adjust their service level for their collection services as requested by the CITY.
(2) Participate in collection services approved by the CITY for Organic Waste collection service(s) by placing designated materials in designated containers as described below. Generator shall place Source Separated Compost Container Organic Waste, including Food Waste, in the Compost Container; Source Separated Recyclable Materials in the Recycling Container; and Landfill Container Waste in the Landfill Container; in each case, solely to the extent such materials are acceptable materials in the applicable container under the franchise agreement between the CITY and a Regulated Hauler. Generator shall not place materials designated for the Landfill Container into the Compost Container or Recycling Container.
(b) Supply and allow access to adequate number, size and location of collection containers with sufficient labels or colors (conforming with subsections (c)(1), (c)(2), and (d) below) for employees, contractors, tenants, and customers, consistent with the Recycling Container, Compost Container, and Landfill Container collection service or, if self-hauling, per the Commercial Businesses’ instructions to support its compliance with its self-haul program, in accordance with Section 8.14.100.
(c) Excluding Multi-Family Residential Dwellings, provide containers for the collection of Source Separated Compost Container Organic Waste and Source Separated Recyclable Materials generated by that business in all areas where the Commercial Business provides disposal containers for employees, contractors, tenants, customers and other users of the -14-
premises (“User Disposal Containers”). Such User Disposal Containers do not need to be provided in restrooms. If a Commercial Business does not generate, or has a waiver pertaining to, any of the materials that would be collected in one type of User Disposal Container, then the business does not have to provide that particular type of container in all areas where User Disposal Containers are provided. Pursuant to 14 CCR Section 18984.9(b), the User Disposal Containers provided by the business shall have either:
(1) A body or lid that conforms with the following container colors, with either lids conforming to these color requirements or bodies conforming to these color requirements, or both lids and bodies conforming to these color requirements: gray or black containers for Landfill Container Waste, blue containers for Source Separated Recyclable Materials, and green containers for Source Separated Compost Container Organic Waste. Notwithstanding the foregoing, a Commercial Business is not required to replace functional containers, including containers purchased prior to January 1, 2023, that do not comply with the color requirements of this subsection prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first.
(2) Container labels that include language or graphic images, or both, indicating the primary materials accepted and the primary materials prohibited in that container, or containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in the container. Pursuant 14 CCR Section 18984.8, the container labeling requirements are required on new containers commencing January 1, 2023.
(d) For Multi-Family Residential Dwellings, provide containers for the collection of Source Separated Compost Container Organic Waste and Source Separated Recyclable Materials in all common areas where those materials are being generated and disposal containers are provided for tenants, and in areas for internal consolidation of materials that are later deposited in Organics Containers, Recycling Containers, and Landfill Containers for collection by Regulated Haulers. Such containers do not need to be provided in restrooms accessible from common areas of the Multi-Family Dwelling. Such containers shall comply with the color and labeling requirements specified in subsections (c)(1) and (c)(2) above.
(e) To the extent practical through education, training, inspection, and/or other measures, prohibit employees from placing materials in a container not designated for those materials per the Recycling Container, Compost Container, and Landfill Container collection service or, if self-hauling, per the Commercial Businesses’ instructions to support its compliance with its self-haul program, in accordance with Section 8.14.100. (f) Periodically inspect Recycling Containers, Compost Containers, and Landfill Containers for contamination and inform employees if containers are contaminated and of the requirements to keep contaminants out of those containers pursuant to 14 CCR Section 18984.9(b)(3).
(g) Annually provide information to employees, contractors, tenants, building residents, and customers about Organic Waste Recovery requirements and about proper sorting of Source -15-
Separated Compost Container Organic Waste and Source Separated Recyclable Materials. (h) Provide information before or within fourteen days of new occupation of the premises to new tenants and no less than fourteen days before tenants move out of the premises, unless a tenant does not provide fourteen or more days’ notice to before moving out, that describes requirements to keep Source Separated Compost Container Organic Waste and Source Separated Recyclable Materials separate from each other and from Landfill Container Waste and the location of containers and the rules governing their use at the property. (i) Provide or arrange access for the Enforcement Agency to their properties during all Inspections conducted in connection with this Ordinance and timely provide documents requested by the Enforcement Agency to confirm compliance with the requirements of this chapter.
(j) Accommodate and cooperate with any Remote Monitoring program established by a Regulated Hauler or the CITY for Inspection of the types of materials placed in containers for Prohibited Container Contaminants to evaluate generator’s compliance with subsection (a)(1) above. Notwithstanding any other provision of this chapter, Remote Monitoring equipment may not be installed on or in any containers or other property owned by a Regulated Hauler without the CITY providing at least 30-days’ written notice thereof to the Regulated Hauler and such Regulated Hauler shall be entitled to reimbursement from CITY for any costs or expenses incurred as a result of any damage to the Regulated Hauler’s equipment as a result of the installation by CITY or its contractors of any Remote Monitoring equipment.
(k) At Commercial Business’ option and subject to approval by the Enforcement Agency, implement its own Remote Monitoring program for self-inspection of the types of materials placed in Recycling Containers, Compost Containers, and Landfill Containers for the purpose of monitoring the contents of containers to determine appropriate levels of service and to identify Prohibited Container Contaminants. Purchase and maintenance of the Remote Monitoring program shall be the responsibility of the Commercial Business. (l) Nothing in this section prohibits a generator from preventing or reducing waste generation, managing Organic Waste on site, or using a Community Composting site pursuant to 14 CCR Section 18984.9(c) to the extent permitted by other applicable laws. (m) The Enforcement Agency for the provisions of this section is the CITY, and any other Designee of the CITY.
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8.14.060. WAIVERS FOR GENERATORS
(a) De Minimis Waivers. Except for Multi-Family Residential Dwellings, the Enforcement Agency may waive a Commercial Business’ obligation to comply with some or all of the Organic Waste collection service requirements of this chapter if the Commercial Business provides documentation demonstrating that the business generates below a certain amount of Organic Waste material, as described in subsection (a)(2) below. A Commercial Business requesting a de minimis waiver shall:
(1) Submit an application to the Enforcement Agency specifying the service or requirements for which it is requesting a waiver.
(2) Provide documentation with the application that either:
(A) The Commercial Business’ total Solid Waste collection service is two cubic yards or more per week and Organic Waste subject to collection in a Recycling Container or Compost Container comprises less than 20 gallons per week per applicable container of the business’ total waste; or, (B) The Commercial Business’ total Solid Waste collection service is less than two cubic yards per week and Organic Waste subject to collection in a Recycling Container or Compost Container comprises less than 10 gallons per week per applicable container of the business’ total waste. (C) For the purposes of subsections (a)(2)(A) and (a)(2)(B) above, total Solid Waste shall be the sum of weekly Landfill Container Waste, Source Separated Recyclable Materials, and Source Separated Compost Container Organic Waste measured in cubic yards.
(3) If the waiver is granted, notify the Enforcement Agency granting the waiver if circumstances change such that Commercial Business’s Organic Waste exceeds threshold required for waiver, in which case the waiver will be rescinded. (4) If the waiver is granted, provide written verification of continued eligibility for de minimis waiver to the Enforcement Agency every 5 years. (b) Physical Space Waivers. The Enforcement Agency may waive a Commercial Business’ or property owner’s (including a Multi-Family Residential Dwelling’s) obligation to comply with some or all of the recyclable materials and/or Organic Waste collection service requirements of this chapter if the Enforcement Agency has evidence from a Regulated Hauler, licensed architect, licensed engineer, or other Person authorized by the Enforcement Agency demonstrating that the premises lacks adequate space for the collection containers required for compliance with the Organic Waste collection requirements of Section 8.14.050.

A Commercial Business requesting a physical space waiver shall:
(1) Submit an application to the Enforcement Agency specifying the service or -17-
requirements for which it is requesting a waiver.
(2) Provide documentation with the application that the premises lacks adequate space for Recycling Containers and/or Compost Containers, which shall include documentation from its Regulated Hauler, licensed architect, licensed engineer, or other Person authorized by the Enforcement Agency.
(3) If the waiver is granted, notify the Enforcement Agency granting the waiver if the Commercial Business’ physical space configurations or amounts of Solid Waste generation change, in which case the waiver may be rescinded. (4) If the waiver is granted, provide written verification to the Enforcement Agency of continued eligibility for a physical space waiver every five years. (c) Collection Frequency Waiver. The Enforcement Agency, at its discretion and in accordance with 14 CCR Section 18984.11(a)(3), may allow the owner or tenant of any residence, premises, business establishment or industry that subscribes to the CITY’s threeor, if relevant, three-plus container Organic Waste collection service to arrange for the collection of their Recycling Container, Landfill Container, or both once every fourteen days, rather than once per week.
(d) The Enforcement Agency for the provisions of this section is the CITY and any other Designee of the CITY.

8.14.070. REQUIREMENTS FOR COMMERCIAL EDIBLE FOOD GENERATORS (a) Tier One Commercial Edible Food Generators must comply with the requirements of this section commencing January 1, 2023, and Tier Two Commercial Edible Food Generators must comply commencing January 1, 2024, pursuant to 14 CCR Section 18991.3 or such later deadline established by State law or regulations. (b) Large Venue or Large Event operators not providing food services, but allowing for food to be provided by others, shall require Food Facilities operating at the Large Venue or Large Event to comply with the requirements of this section, commencing January 1, 2024 or such later deadline established by State law or regulations. (c) Commercial Edible Food Generators shall comply with the following requirements:
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(1) Arrange to safely recover for human consumption the maximum amount of Edible Food that would otherwise be disposed.
(2) Enter into a contract or other written agreement with Food Recovery Organizations Food Recovery Services for: (i) the collection for Food Recovery of Edible Food that would otherwise be disposed; or, (ii) acceptance of Edible Food that would otherwise be disposed that the Commercial Edible Food Generator self-hauls to the Food Recovery Organization for Food Recovery.
(3) Use best efforts to abide by all contractual or written agreement requirements specified by the Food Recovery Organization or Food Recovery Service on how Edible Food should be prepared, packaged, labeled, handled, stored, distributed or transported to the Food Recovery Organization or Service. (4) Not intentionally donate food that has not been prepared, packaged, handled, stored and/or transported in accordance with the safety requirements of the California Retail Food Code.
(5) Not intentionally spoil Edible Food that is capable of being recovered by a Food Recovery Organization or a Food Recovery Service.
(6) Allow the Enforcement Agency to review records upon request, including by providing electronic copies or allowing access to the premises, pursuant to 14 CCR Section 18991.4.
(7) Keep records that include the following information, or as otherwise specified in 14 CCR Section 18991.4:
(A) A list of each Food Recovery Service or Food Recovery Organization that collects or receives its Edible Food pursuant to a contract or written agreement established under 14 CCR Section 18991.3(b).
(B) A copy of all contracts and written agreements established under 14 CCR Section 18991.3(b) and/or this chapter.
(C) A record of the following information for each of those Food Recovery Services or Food Recovery Organizations:
(i) The name, address and contact information of the Food Recovery Service or Food Recovery Organization.
(ii) The types of food that will be collected by or self-hauled to the Food Recovery Service or Food Recovery Organization.
(iii) The established frequency that food will be collected or self- hauled. -19-
(iv) The quantity of food, measured in pounds recovered per month, collected or self-hauled to a Food Recovery Service or Food Recovery Organization for Food Recovery.
(D) If it has not entered into a contract or written agreement with Food Recovery Organizations or Food Recovery Services pursuant to subsection (c)(2) above, a record that describes (i) its direct donation of Edible Food to end recipients (including employees) and/or (ii) its food waste prevention practices that result in it generating no surplus Edible Food that it can donate.
(8) Tier One Commercial Edible Food Generators and Tier Two Commercial Edible Food Generators shall provide, upon request, a Food Recovery report to the Enforcement Agency that includes the information in Section 8.14.070(c)(7).

Entities shall provide the requested information within 60 days of the request. (d) Nothing in this Ordinance shall be construed to limit or conflict with (1) the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of California on September 25, 2017, which added Article 13 commencing with Section 49580 to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code, and to amend Section 114079 of the Health and Safety Code, relating to food safety, as amended, supplemented, superseded and replaced from time to time); or (2) otherwise applicable food safety and handling laws and regulations.
(e) Nothing in this Ordinance prohibits a Commercial Edible Food Generator from donating Edible Food directly to end recipients for consumption, pursuant to Health and Safety Code Section 114432(a).
(f) The Enforcement Agency for the provisions of this section is the CITY and any other Designee of the CITY.

8.14.080. REQUIREMENTS FOR FOOD RECOVERY ORGANIZATIONS AND

SERVICES
(a) Nothing in this Ordinance prohibits a Food Recovery Service or Food Recovery Organization from refusing to accept edible food from a Commercial Edible Food Generator, in accordance with 14 CCR Section 18990.2(d). (b) Food Recovery Services collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(1):
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(1) The name, address, and contact information for each Commercial Edible Food Generator from which the service collects Edible Food.
(2) The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month. This may also include the total quantity in pounds of food collected that was spoiled when received from a Commercial Edible Food Generator or otherwise not able to be used to feed people. (3) The quantity in pounds of Edible Food transported to each Food Recovery Organization per month.
(4) The name, address, and contact information for each Food Recovery Organization that the Food Recovery Service transports Edible Food to for Food Recovery. (c) Food Recovery Organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the organization receives Edible Food. (2) The quantity in pounds of Edible Food received from each Commercial Edible Food Generator per month. This may also include the total quantity in pounds of food collected that was spoiled when received from a Commercial Edible Food Generator or otherwise not able to be used to feed people. (3) The name, address, and contact information for each Food Recovery Service that the organization receives Edible Food from for Food Recovery. (d) Food Recovery Organizations and Food Recovery Services that have their primary address physically located in the City and contract with or have written agreements with one or more Commercial Edible Food Generators pursuant to 14 CCR Section 18991.3(b) shall report to the CITY the total pounds of Edible Food recovered from the Tier One and Tier Two Commercial Edible Food Generators they have established a contract or written agreement with pursuant to 14 CCR Section 18991.3(b) according to the following schedule: (i) no later than August 15, 2023, submit an initial report covering the period of January 1, 2023 to June 30, 2023; and (ii) no later than March 31, 2024, and no later than every March 31 thereafter, submit a report covering the period of January 1 to December 31 of the previous calendar year.
(e) In order to support Edible Food Recovery capacity planning assessments and similar studies, Food Recovery Services and Food Recovery Organizations operating in the City shall provide, upon request, information and consultation to the Enforcement Agency regarding existing, or proposed new or expanded, Food Recovery capacity in a form that can be provided to or that can be accessed by the CITY and Commercial Edible Food Generators in the City A Food Recovery Service or Food Recovery Organization contacted by the Enforcement Agency shall respond to such request for information within 60 days, -21-
unless a shorter timeframe is otherwise specified by the Enforcement Agency. (f) The Enforcement Agency for the provisions of this section is the CITY and any other Designee of the CITY.

8.14.090. REQUIREMENTS FOR REGULATED HAULERS AND FACILITY

OPERATORS
(a) Requirements for Regulated Haulers.
(1) A Regulated Hauler providing Single-Family, Commercial, or industrial Organic Waste collection service to generators within the City shall meet the following requirements and standards in connection with collection of Organic Waste:
(A) Through written notice to the CITY annually on or before March 31, identify the facilities to which they will transport Organic Waste including facilities for Source Separated Recyclable Materials and Source Separated Compost Container Organic Waste.
(B) Transport Source Separated Recyclable Materials to a facility that recycles those materials and transport Source Separated Compost Container Organic Waste to a facility, operation, activity, or property that recovers Organic Waste as defined in 14 CCR, Division 7, Chapter 12, Article 2. (C) Obtain approval from the CITY to haul Organic Waste, unless it is transporting Source Separated Organic Waste to a Community Composting site or lawfully transporting C&D in a manner that complies with 14 CCR Section 18989.1, Section 8.14.130, and any CITY rules.
(2) The Enforcement Agency for the provisions of this subsection (a) is the CITY and any other Designee of the CITY.
(b) Requirements for Facility Operators and Community Composting Operations (1) Owners of facilities, operations, and activities that recover Organic Waste, including, but not limited to, compost facilities, in-vessel digestion facilities, and publicly-owned treatment works shall, upon request from the CITY, provide within 60 days information regarding available and potential new or expanded capacity at their facilities, operations, and activities, including information about through put and permitted capacity necessary for planning purposes. (2) Community Composting operators shall, upon request from the CITY, provide within 60 days information to support Organic Waste capacity planning, including, but not limited to, an estimate of the amount of Organic Waste anticipated to be handled at the Community Composting operation.
(3) The Enforcement Agency for the provisions of this subsection (b) is the CITY and any Designee of the CITY.
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8.14.100. REQUIREMENTS FOR SELF-HAULERS
(a) Self-Haulers shall source separate all recyclable materials and Organic Waste (materials that the CITY otherwise requires generators to separate for Collection in the CITY’s organics and recycling collection program) generated or handled on-site from Solid Waste in a manner consistent with 14 CCR Sections 18984.1 and 18984.2, or shall haul Organic Waste to a High Diversion Organic Waste Processing Facility as specified in 14 CCR Section 18984.3.
(b) Self-Haulers shall haul their Source Separated Recyclable Materials to a facility that recovers those materials; and haul their Source Separated Compost Container Organic Waste to a Solid Waste facility, operation, activity, or property that processes or recovers Source Separated Organic Waste. Alternatively, Self- Haulers may haul Organic Waste to a High Diversion Organic Waste Processing Facility. Self-Haulers may Back-haul to a destination owned and operated by the generator using the generator’s own employees and equipment and then haul those consolidated materials to facilities meeting the requirements of this subsection (b) or otherwise dispose of the waste, recyclables, and organic waste in a manner consistent with this Ordinance.
(c) Self-Haulers shall certify at least once every five (5) years to compliance with this section, on a form provided by the City, as a precondition to self-hauling, and upon every change of address.
(d) Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall keep a record of the amount of Organic Waste delivered to each Solid Waste facility, operation, activity, or property that processes or recovers Organic Waste; this record shall be subject to Inspection by the Enforcement Agency. The records shall include the following information:
(1) Delivery receipts and weight tickets from the entity accepting the material. (2) The amount of material in cubic yards or tons transported by the generator to each entity.
(3) If the material is transported to an entity that does not have scales on-site, or employs scales incapable of weighing the Self-Hauler’s vehicle in a manner that allows it to determine the weight of materials received, the Self- Hauler is not required to record the weight of material but shall keep a record of the entities that received the Organic Waste.
(e) Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall submit a Certification of Recycling Service Form to the Enforcement Agency for review for compliance if they do not also subscribe to separate collection service for Compost Containers and/or Recycling Containers by a Regulated Hauler.

Applications will be considered for approval to the extent permitted by other applicable laws.
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(f) Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall submit a new Certification of Recycling Service Form to the Enforcement Agency for compliance review every five years, if they do not also subscribe to separate collection service for Compost Containers and/or Recycling Containers by a Regulated Hauler.
(g) Self-Haulers shall notify the Enforcement Agency if they subscribe to separate collection service for Compost Containers and/or Recycling Containers by a Regulated Hauler, such that they are no longer Self-Haulers.
(h) Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall provide information, upon request, collected in subsection (c) above to the Enforcement Agency. Entities shall provide the requested information within 60 days. (i) A Single-Family Organic Waste Generator that self-hauls Organic Waste is not required to record or report information in subsections (d) through (g) above. (j) The Enforcement Agency for the provisions of this section is the CITY and any other Designee of the CITY.

8.14.110. COMPLIANCE WITH CALGREEN RECYCLING REQUIREMENTS (a) Persons applying for a permit from the Jurisdiction for new construction and building additions and alternations shall comply with the requirements of this section and all required components of the California Green Building Standards Code, 24 CCR, Part 11, known as CALGreen, as amended, if its project is covered by the scope of CALGreen. If the requirements of CALGreen are more stringent then the requirements of this section, the CALGreen requirements shall apply.

Project applicants shall refer to Jurisdiction’s building and/or planning code for complete CALGreen requirements.
(b) For projects covered by CALGreen, the applicants must, as a condition of the Jurisdiction’s permit approval, comply with the following:
(1) Where five (5) or more Multi-Family dwelling units are constructed on a building site, provide readily accessible areas that serve occupants of all buildings on the site and are identified for the storage and collection of Blue Container and Green Container materials, consistent with the three container collection program offered by the Jurisdiction, or comply with provision of adequate space for recycling for MultiFamily and Commercial premises pursuant to Sections 4.408.1, 4.410.2, 5.408.1, and

5.410.1 of the California Green Building Standards Code, 24 CCR, Part 11 as amended provided amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020. (2) New Commercial construction or additions resulting in more than 30% of the floor area shall provide readily accessible areas identified for the storage and collection of Blue Container and Green Container materials, consistent with the three container program offered by the Jurisdiction, or shall comply with provision of adequate space -24-
for recycling for Multi-Family and Commercial premises pursuant to Sections

4.408.1, 4.410.2, 5.408.1, and 5.410.1 of the California Green Building Standards Code, 24 CCR, Part 11 as amended provided amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020.
(3) Comply with CALGreen requirements and applicable law related to management of C&D, including diversion of Organic Waste in C&D from disposal. Comply with Jurisdiction’s C&D ordinance, and all written and published Jurisdiction policies and/or administrative guidelines regarding the collection, recycling, diversion, tracking, and/or reporting of C&D.

8.14.120. MODEL WATER EFFICIENT LANDSCAPING ORDINANCE

REQUIREMENTS
(a) Property owners or their building or landscape designers, including anyone requiring a building or planning permit, plan check, or landscape design review from the Jurisdiction, who are constructing a new (Single-Family, Multi-Family, public, institutional, or Commercial) project with a landscape area greater than 500 square feet, or rehabilitating an existing landscape with a total landscape area greater than 2,500 square feet, shall comply with Sections 492.6(a)(3)(B) (C), (D), and (G) of the MWELO, including sections related to use of Compost and mulch as delineated in this section. (b) The following Compost and mulch use requirements that are part of the MWELO are now also included as requirements of this chapter. Other requirements of the MWELO are in effect and can be found in 23 CCR, Division 2, Chapter 2.7.
(c) Property owners or their building or landscape designers that meet the threshold for MWELO compliance outlined in subsection (a) above shall:
(1) Comply with Sections 492.6 (a)(3)(B)(C),(D) and (G) of the MWELO, which requires the submittal of a landscape design plan with a soil preparation, mulch, and amendments section to include the following:
(A) For landscape installations, Compost at a rate of a minimum of four cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six (6) inches into the soil. Soils with greater than six percent (6%) organic matter in the top six (6) inches of soil are exempt from adding Compost and tilling.
(B) For landscape installations, a minimum three- (3-) inch layer of mulch shall be applied on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife up to five percent (5%) of the landscape area may be left without mulch.

Designated insect habitat must be included in the landscape design plan as such.
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(C) Organic mulch materials made from recycled or post-consumer materials shall take precedence over inorganic materials or virgin forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where prohibited by local fuel modification plan guidelines or other applicable local ordinances.
(2) The MWELO compliance items listed in this section are not an inclusive list of MWELO requirements; therefore, property owners or their building or landscape designers that meet the threshold for MWELO compliance outlined in subsection (a) above shall consult the full MWELO for all requirements. (d) If, after the adoption of this chapter, the California Department of Water Resources, or its successor agency, amends 23 CCR, Division 2, Chapter 2.7, Sections 492.6(a)(3)(B) (C), (D), and (G) of the MWWELO September 15, 2015 requirements in a manner that requires Jurisdictions to incorporate the requirements of an updated MWELO in a local ordinance, and the amended requirements include provisions more stringent than those required in this section, the revised requirements of 23 CCR, Division 2, Chapter 2.7 shall be enforced.

8.14.130. DELEGATION OF AUTHORITY
(a) The City Council may delegate all CITY responsibilities and authority under this Ordinance, SB 1383, and SB 1383 Regulations including, but not limited to, those related to Organic Waste collection services, education, inspections and investigations, and Edible Food recovery services, to its Designee by:
(1) Contracts with haulers or other private entities; or (2) Agreements such as memorandums of understandings with other jurisdictions, entities, regional agencies as defined in Public Resources Code Section 40181, or other government entities, including environmental health departments. (b) The City Council may not delegate authority to impose civil penalties, or to maintain an action to impose civil penalties, to a private party.
(c) The City Manager shall have the authority to enter into agreements and contracts in furtherance of this chapter.

8.14.140. INSPECTIONS AND INVESTIGATIONS
The Enforcement Agency is authorized to conduct Inspections and investigations, at random or otherwise, of any collection container, collection vehicle loads, or transfer, processing, or disposal facility for materials collected from generators, or Source Separated materials to confirm compliance with the provisions of this chapter for which it has enforcement authority by Organic Waste Generators, Commercial Businesses (including Multi-Family Residential Dwellings), Commercial Edible Food Generators, Regulated Haulers, Self-Haulers, Food Recovery Services, and Food Recovery Organizations, subject to applicable laws. This section does not allow entry in a private residential dwelling unit for Inspection. For the purposes of inspecting Commercial Business containers for compliance with Section 8.14.050(b), the Enforcement Agency may conduct container -26-
Inspections for Prohibited Container Contaminants using Remote Monitoring, and Commercial Businesses shall accommodate and cooperate with the Remote Monitoring pursuant to Section 8.14.050(j).
(a) A Person subject to the requirements of this chapter shall provide or arrange for access during all Inspections (with the exception of a private residential dwelling unit) and shall cooperate with the Enforcement Agency during such Inspections and investigations. Such Inspections and investigations may include confirmation of proper placement of materials in containers, inspection of Edible Food Recovery activities, review of required records, or other verification or Inspection to confirm compliance with any other requirement of this chapter. Failure to provide or arrange for: (i) access to the premises; (ii) installation and operation of Remote Monitoring equipment, if a Remote Monitoring program is adopted and installation of such equipment is authorized pursuant to the terms of this chapter; or (iii) access to records for any Inspection or investigation is a violation of this chapter and may result in penalties described in Section 8.14.150.
(b) Any records obtained by the Enforcement Agency during Inspections, Remote Monitoring, and other reviews shall be subject to the requirements and applicable disclosure exemptions of the California Public Records Act as set forth in Government Code Section 6250 et seq. (c) The Enforcement Agency is authorized to conduct any Inspections, Remote Monitoring, or other investigations as reasonably necessary to further the goals of this chapter, subject to applicable laws.
(d) The Enforcement Agency shall accept written complaints from persons regarding an entity that may be potentially non-compliant with this Ordinance. (e) The Enforcement Agency is the CITY and any Designee authorized by the CITY to enforce one or more sections of this chapter.

8.14.150. ENFORCEMENT
(a) Violation of any provision of this Chapter shall constitute grounds for issuance of an administrative citation and assessment of a fine by the Enforcement Agency. Enforcement Actions under this Chapter are issuance of an administrative citation with a fine. The CITY’s procedures on imposition of administrative fines in Chapter 1.09 are hereby incorporated in their entirety, as modified from time to time, and shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this Chapter and any rule or regulation adopted pursuant to this Chapter.
(b) Other remedies allowed by law may be used, including, but not limited to, civil action or prosecution as a misdemeanor or an infraction. The CITY may pursue civil actions in the California courts to seek recovery of unpaid administrative citations. The CITY may choose to delay court action until such time as a sufficiently large number of violations, or cumulative size of violations exist such that court action is a reasonable use of CITY staff and resources. (c) Enforcement pursuant to this Chapter may be undertaken by the Enforcement Agency. -27-
(d) Appeals Process. Persons subject to administrative enforcement of this Chapter may request an administrative hearing pursuant to Section 1.09.060.
(e) Education Period for Non-Compliance Beginning January 1, 2023, and through December 31, 2024. The CITY will conduct Inspections, Remote Monitoring, Route Reviews or waste evaluations, and Compliance Reviews, depending upon the type of regulated entity, to determine compliance, and if the CITY determines that Organic Waste Generator, Self-Hauler, Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance, the CITY shall provide educational materials to the entity describing its obligations under this Chapter and a notice that compliance is required by January 1, 2023, and that violations may be subject to administrative civil penalties from the CITY starting on January 1, 2024.
(f) Civil Penalties for Non-Compliance. Beginning January 1, 2023, if the CITY determines that an Organic Waste Generator, Self-Hauler, Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this Chapter, it shall document the noncompliance or violation, issue an administrative citation and take Enforcement Action, as needed.

8.14.160. LOCAL REGULATION AND OPT-IN PROVISIONS
(a) Nothing in this Ordinance shall be construed to prohibit the CITY from enacting and enforcing ordinances and regulations regarding the collection, transport, storage, processing, and deposit in landfill(s) of Solid Waste within its jurisdiction, including more stringent requirements than those in this Ordinance.

SECTION 2. CODE AMENDMENT. Section 8.12.030 of Chapter 8.12 of Title 8 of the Fortuna Municipal Code is hereby repealed.

SECTION 3. SEVERABILITY. If any provision of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such invalidity shall not affect the remaining provisions or application of the remaining provisions of this Ordinance, which can be given effect without the invalid provisions or application.

SECTION 4. EFFECTIVE DATE.
a) This Ordinance shall be posted at City Hall after its adoption and shall take effect commencing on January 1, 2023.

INTRODUCED AND FIRST READING PERFORMED on this 16th day of May 2022 by the following vote:
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AYES:

NAYS:

ABSENT:

ABSTAIN:

Sue Long, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
SECOND READING PERFORMED AND ADOPTED on the day of _________, 2022 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST:

Sue Long, Mayor
___________________________
Siana L. Emmons, City Clerk
City Manager’s Report

STAFF REPORT
City Manager's Report
DATE: June 6, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Merritt Perry, City Manager

1. Upcoming Council Meeting Dates
*Special Meeting/Workshop
Tuesday, June 21, 2022
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall
Tuesday, July 5, 2022
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall

2. Upcoming Planning Commission Meeting Dates
Tuesday, June 14, 2022
6:00 p.m.

Regular Planning Commission Meeting
Council Chambers at City Hall

3. Upcoming Measure E Meeting Dates
Tuesday, September 20, 2022
5:30 p.m.

Regular Measure E Meeting
Council Chambers at City Hall

4. Upcoming Rohner Community Recreation and Park District (RCRPD) Meeting Dates Wednesday, July 6, 2022
2:30 p.m.

Regular RCRPD Meeting
Council Chambers at City Hall

5. Verbal Report