get_agenda_document_link — Fortuna City Council, April 15, 2024 (part 1 of 2)

AMENDED
COUNCIL ACTION: Mayor Pro Tem Johnson moved, seconded by Counsel Member Mobley to amend the agenda to allow Council Member Losey to attend remotely. AYES: Council Members Conley, Mobley, Mayor Pro Tem Johnson, Mayor Trent NOES: None ABSTAIN: None ABSENT:

None MOTION CARRIED: 4/0
Council Losey disclosed his need for the remote attendance was due to a family member out of the Fortuna area becoming extremely ill. He also stated there were no individuals over the age of 18, present in the room with him.

COUNCIL ACTION: Council Member Mobley moved, seconded by Counsel Member Conley to approve Council Member Losey's remote attendance. AYES: Council Members Conley, Mobley, Mayor Pro Tem Johnson, Mayor Trent NOES: None ABSTAIN: None ABSENT: None MOTION CARRIED: 4/0
621 11th Street, Fortuna CA
Zoom Option: 1-669-900-9128 Meeting ID 817 2610 0549 Password 414224
We May Disagree, But We Will Be Respectful of One Another All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council Personal Attacks are Unacceptable
The City Council May Take Action on any Item on this Agenda.

1. CALL TO ORDER / FLAG SALUTE / ROLL CALL
Council
Regular Meeting Agenda
Monday, April 15, 2024 at 6:00 pm
Council Member Kyle Conley
Council Member Mike Losey
Council Member Kris Mobley
Mayor Pro Tem Mike Johnson
Mayor Tami Trent
Staff
City Manager Merritt Perry
City Clerk Siana L. Emmons

2. PRESENTATIONS / DISCUSSION
a. Introduction of Treatment Plant Operator Robert Gearhart b. Presentation of Draft Proposed Water and Wastewater 5-year Rate Adjustments (Encl.) c. Initial Review of Proposed Ordinance and Resolution Seeking Consolidation (Encl.) d. Police Department Plaque

3. ORAL COMMENTS FROM THE PUBLIC
Members of the Public may be heard at this time on any item within the subject matter jurisdiction of the City that is not on the Public Meeting Agenda. It is the practice of this Council to hold public comment for every item of business on the agenda at the time that item is heard. If a speaker cannot stay for a particular item of business, they may be heard during this time. Comments concerning the Consent Calendar may also be heard at this time. Speakers addressing the Council will be limited to 3 minutes per speaker. Be advised that, by law, the City Council can only deliberate or take action on items that are included on the agenda.

4. CONSENT CALENDAR
These matters are routine in nature and are usually approved by a single vote. Any member of the Council may pull a particular item for further discussion. a. City Council Minutes – April 1, 2024 (Special Meeting) b. City Council Minutes – April 1, 2024 (Regular Meeting) c. Administrative Department Monthly Report
d. Community Development Department Monthly Report
e. Finance Department Monthly Report
f. Parks & Recreation Monthly Report
g. Police Department Monthly Report
h. Public Works Monthly Report
i. River Lodge Monthly Report
j. Report of Disbursements
k. Road Maintenance and Rehabilitation Account Project List; Resolution 2024-09 l. Revision to Classification Schedule - Remove P&R Supervisor/Transit Administrator and add Administrative Assistant II (P&R)
m. City of Fortuna Basic Financial Statement Audit for the year ended June 30, 2023

5. CITY COUNCIL BUSINESS
a. Approve Supplemental Budget Request for Additional Professional Services for Maintenance and Improvements to Fortuna Monday Club
b. Authorize City Manager to Execute Clean California Grant Agreements for the North Main Gateway Project

6. CITY MANAGER’S REPORT

7. FUTURE AGENDA ITEMS
At this time, members of the Council may consider or request items to be placed on a future agenda through a consensus of the majority.

8. CITY COUNCIL REPORTS AND COMMENTS
a. Council Member Kyle Conley
Redwood Region Economic Development Corporation (RREDC), Parks & Recreation Commission Alternate
b. Council Member Mike Losey
Redwood Region Economic Development Corporation (RREDC) Alternate, Redwood Coast Energy Authority Alternate, Local Agency Formation Commission (LAFCO), Humboldt Transit Authority Alternate, Parks & Recreation Commission
c. Council Member Kris Mobley
Humboldt County Association of Governments (HCAOG) Alternate, Fortuna Business Improvement District (FBID), Historical Commission Alternate, Redwood Coast Energy Authority
d. Mayor Pro Tem Mike Johnson
Humboldt County Association of Governments (HCAOG), Historical Commission, League of California Cities Transportation, Communication, & Public Works Commission, Indian Gaming Commission Alternate
e. Mayor Tami Trent
Humboldt Transit Authority (HTA), Indian Gaming Commission, League of California Cities Public Safety Commission, Fortuna Business Improvement District (FBID) Alternate

9. ADJOURN TO CLOSED SESSION
a. CONFERENCE WITH LABOR NEGOTIATORS, City Negotiator: City Manager Merritt Perry, Employee Organizations: Fortuna Police Employees Association, Fortuna Employees Association, and the Unrepresented/Management group in accordance with Section 54957.6 of the Government Code.

10. REPORT OUT AND ADJOURN
Pursuant to Government Code Section 54957.5, any non-confidential documents or writings that the City distributes, less than 72 hours before a regular meeting, to all or a majority of the legislative body's members must be made available to members of the public at the same time as the distribution. Documents and information related to the agenda topics are available for review at City Hall, 621 11th Street, between the hours of 8:00 AM to 5:00 PM. Members of the public are invited to come to the meeting and comment. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (707) 725- 7600. Notification prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Contact: Siana L. Emmons, City Clerk ([email protected] 707-725-1409) | Agenda published on 04/11/2024 at 5:36 PM
Presentation Item 2b

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STAFF REPORT
City Council Presentation Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Brendan Byrd, Public Works Director/City Engineer Aaron Felmlee, Finance Director
THROUGH: Merritt Perry, City Manager
SUBJECT: Presentation of Draft Proposed Water and Wastewater 5-year Rate Adjustments
STAFF RECOMMENDATION:

Present draft recommended water and wastewater 5-year rate adjustments and seek council direction prior to beginning Proposition 218 noticing.

EXECUTIVE SUMMARY:

The City of Fortuna operates a municipal potable water and wastewater collection and treatment system. In total, the system includes a potable water production and treatment facility, four water storage tanks/reservoirs, a wastewater treatment plant, numerous water and wastewater pump stations, and collectively over 100-miles of water and sanitary sewer piping. This system is owned by the citizens of Fortuna, and is managed/operated/maintained by approximately 20-full time positions within the public works department (in addition to staff contributions from many other City departments).

The City funds the operation, maintenance, and capital improvement of these assets through user rates collected through monthly water and wastewater bills. The City’s current rate structure was last updated in 2012, and although at that time the user rates were sufficient to cover costs, in recent years the City has been operating at or below revenues, as shown in the figure below. Over the past 12 years, the cumulative change in the California Construction Cost Index (CCI) and Consumer Price Index (CPI) has been 70% and 39%, respectively. Some of the largest contributing factors in cost escalation have included personal costs (wages, benefits and insurance), construction and material costs, and utility/chemical costs.

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With the City’s revenue falling short of expenditures, this has required filling the gap using capital and operating reserves. Additionally, the difference between revenue and expenditures is projected to make the City out of compliance with the City’s 2017 Revenue Bond, which requires that annual net revenue be at least 125% of annual debt service. Lastly, in the coming years staff are planning for or otherwise projecting a host of additional costs to service, including the City’s long-planned wastewater plant upgrade project, a number of sanitary sewer and water distribution rehabilitation projects, and continued rising personnel costs.

With these circumstances in mind, in late 2023 staff began planning for a water and wastewater rate study and rate adjustment, to be implemented as part of the new fiscal year budget starting July 1, 2024. In November staff solicited for proposals from several professional firms, and in December selected Jacobs Engineering, the same consultant that is currently working on the design of the City’s wastewater treatment plant upgrade project. In early April, Jacobs completed the draft rate study, which is included as Attachment A, and the draft connection fee update, which is included as Attachment B.

In summary, staff are anticipating recommended user bill increases of approximately 50% in the first year, with smaller incremental increases occurring each year after, totaling a span of 5-years.

The graph from the draft report showing Fortuna’s average monthly customer bill relative to current, and other local communities, is shown below.
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Total Sales from Rates Annual Requirements from Rates
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It should be noted that the plot above depicts ‘average’ bills, not minimum bills. For customers currently paying the City’s minimum rate (approximately $62), the anticipated recommended user bill would be approximately $93. As shown in the figure above, average monthly user bills would be expected to increase from approximately $76 to $112. Even with the proposed rate increases in the first year, the City’s utility bill cost would be significantly lower than all of the surrounding communities that provide water and sewer services, with the sole exception being McKinleyville Community Services District.

The Attachments provide further detail on the recommended proposed adjustments to rates, including the recommended rate adjustments in future years (which are significantly smaller than proposed year-one adjustments). The findings of the Draft Rate Study and Connection Fee Update will be presented in detail at the April 15th Council Meeting.

As noted above, the rate adjustments presented in this report and in the Attachments currently are draft, and are the recommendations by staff and the City’s consultant (Jacobs). Jacobs is currently working on finalizing the details of the rate study, in addition to the cost of service analysis, neither of which are anticipated to appreciably change the results presented in the current draft materials.

With this presentation, staff are seeking direction/concurrence from the Council on how to proceed with the rate adjustment process, which would lead into the City entering the Proposition 218 process. For the Prop 218 process staff will finalize the recommendations of the rate study taking into account Council input, and produce mailers to be sent to all property owners within the City.

The mailers will be sent with instructions on how a property owner can oppose the proposed adjustment to rates. After a noticing period of 45-days, the City will hold a hearing, currently planned for June 17th, where oppositional ballots will be counted. The proposed rate increases would be made official if the opposing ballots total less than 50% plus one vote.

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RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Provide direction to staff to perform the prop 218 process for the Water and Wastewater rates as presented in the draft Water and Wastewater user rate study and authorize the City Manager to make minor changes to the proposed rates and structure based on the outcome of the cost of service analysis
Attachments:
 Attachment A – Draft Water and Wastewater User Rate Study  Attachment B – Draft Water and Wastewater Connection Fee Update Water and Wastewater User Rate Study
Version: Draft
City of Fortuna

Water and Wastewater Rate Update
March 2024
Water and Wastewater User Rate Study
Client Name: City of Fortuna
Project Name: Water and Wastewater Rate Update
Revision No.: Draft Project No.: D3726700
Date: April 2024 Project Manager: Ted Couch
Prepared by: Kurt Playstead
File Name:

Document history and status
Revision Date Description Author Checked Reviewed Approved Jacobs Engineering Group Inc.
2525 Airpark Dr.

Redding, CA 96001
United States
T +1.530.243.5831
www.jacobs.com
Copyright Jacobs Engineering Group Inc. © 2024.

All rights reserved. The concepts and information contained in this document are the property of the Jacobs group of companies. Use or copying of this document in whole or in part without the written permission of Jacobs constitutes an infringement of copyright.

Jacobs, the Jacobs logo, and all other Jacobs trademarks are the property of Jacobs.

NOTICE: This document has been prepared exclusively for the use and benefit of Jacobs’ client. Jacobs accepts no liability or responsibility for any use or reliance upon this document by any third party.

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Contents
Acronyms and Abbreviations.......................................................................................................................................... v

1. Introduction ........................................................................................................................................................1-2

2. Methodology.......................................................................................................................................................2-3

3. Assumptions .......................................................................................................................................................3-5

4. Water Rate Study ...............................................................................................................................................4-6

4.1 Background Information ....................................................................................................................................4-6

4.2 Existing Debt Service Expenses .......................................................................................................................4-9

4.3 Revenue Requirements.......................................................................................................................................4-9

4.4 Debt Service ............................................................................................................................................................4-2

4.5 Capital Improvements.........................................................................................................................................4-3

4.6 Total System Revenue Requirements ...........................................................................................................4-4

4.7 Proposed Rates ......................................................................................................................................................4-4

4.8 Projected System Revenues..............................................................................................................................4-5

4.9 Impact on Typical User Bills..............................................................................................................................4-7

4.10 Alternative Water Rate Increase Scenario ...................................................................................................4-8

5. Wastewater Rate Study.....................................................................................................................................5-2

5.1 Background Information ....................................................................................................................................5-2

5.2 Existing Debt Service Expenses .......................................................................................................................5-6

5.3 Revenue Requirements.......................................................................................................................................5-6

5.4 Debt Service ............................................................................................................................................................5-7

5.5 Capital Improvements.........................................................................................................................................5-8

5.6 Total System Revenue Requirements ...........................................................................................................5-8

5.7 Proposed Rates ......................................................................................................................................................5-9

5.8 Projected System Revenues...........................................................................................................................5-10

5.9 Impact on Typical User Bills...........................................................................................................................5-13

5.10 Alternative Wastewater Rate Increase Scenario.....................................................................................5-14

6. Rates Comparison Across Communities.................................................................................................... 6-16

7. Conclusions and Recommendations.................................................................................................................2

8. References ...............................................................................................................................................................2 Appendices
Appendix A. Projected Water Rates
Appendix B. Projected Wastewater Rates
Appendix C. Projected Sources and Uses of Funds
Appendix D. Wastewater System Capital Improvement Plan
Appendix E. Projected Wastewater Rates
Appendix F. Projected Sources and Uses of Funds, Wastewater Water and Wastewater User Rate Study
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Tables
Table 4-1. Water Customer Accounts, 2021-23.................................................................................................................4-7 Table 4-2. Water Customer Usage and Revenues, Calendar Year 2021-23............................................................4-7 Table 4-3. Current Water Rates, Inside City ..........................................................................................................................4-8 Table 4-4. Operation and Maintenance Expenses, FY 2020/21–2023/24.............................................................4-9 Table 4-5. Projected Operating Expenses .............................................................................................................................4-2 Table 4-6. Projected Revenue Requirements ......................................................................................................................4-4 Table 4-7. Projected Annual Rate Increases.........................................................................................................................4-4 Table 4-8. Projected Total System Revenue with Proposed Rate Adjustments.....................................................4-5 Table 4-9. Projected Annual Rate Increases, Scenario 1.................................................................................................4-8 Table 5-1. Wastewater Customer Accounts, Calendar Year 2021-23 .......................................................................5-3 Table 5-2. Wastewater Customer Revenues, FY 2021-2023 ........................................................................................5-3 Table 5-3. Current Wastewater Rates, Inside City...............................................................................................................5-4 Table 5-4. Operation and Maintenance Expenses, FY 2021–2023 ............................................................................5-5 Table 5-5. Projected Operating Expenses .............................................................................................................................5-7 Table 5-6. Projected Revenue Requirements ......................................................................................................................5-9 Table 5-7. Projected Annual Rate Increases.........................................................................................................................5-9 Table 5-8. Projected Total System Revenue with Proposed Rate Adjustments..................................................5-10 Table 5-9. Projected Annual Rate Increases, Scenario 1..............................................................................................5-14 Figures
Figure 4-1. Historical Revenues, FY 2021–2023................................................................................................................4-8 Figure 4-2. Projected Annual Debt Service, Water.............................................................................................................4-3 Figure 4-3. Revenue Requirements and Rate Revenues..................................................................................................4-6 Figure 4-4. Ending Capital and Operating Reserve Balance ..........................................................................................4-6 Figure 4-5. Debt Service Coverage, Water Utility ...............................................................................................................4-7 Figure 4-6. Typical Residential Water Bill for 4,500 Gallons, Proposed Rates (FY 2024/25–FY 2028/29).4- 8 Figure 4-7. Ending Capital and Operating Reserve Balance, Scenario 1...................................................................4-9 Figure 5-1. Historical Revenues, FY 2020/21–2022/23 ................................................................................................5-5 Figure 5-2. Projected Annual Debt Service, Wastewater.................................................................................................5-8 Figure 5-3. Revenue Requirements and Rate Revenues...............................................................................................5-11 Figure 5-4. Ending Capital and Operating Reserve Balance .......................................................................................5-12 Figure 5-5. Debt Service Coverage, Wastewater Utility.................................................................................................5-13 Figure 5-6. Typical Residential Wastewater Bill for 4,500 Gallons, Proposed Rates FY 2024/25 through FY 2028/29 ..........................................................................................................................................................................................5-14 Figure 5-7. Ending Capital and Operating Reserve Balance, Scenario 1................................................................5-15 Figure 6-1. Comparison of the City’s Water and Wastewater Bills with Other Communities for 6 CCF of Water Consumed ..........................................................................................................................................................................6-16 Figure 6-2. Comparison of the City’s Water and Wastewater Bills with Other Communities for 6 CCF of Water Consumed, FY 2023-24 through FY 2026-27....................................................................................................6-17 Water and Wastewater User Rate Study
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Acronyms and Abbreviations
$/ccf dollar(s) per one hundred cubic feet
$/mo dollar(s) per month
AWWA American Water Works Association
ccf one hundred cubic feet
CIP capital improvement plan
City or utility City of Fortuna
CCI Construction Cost Index
COLA Cost of living adjustment
CPI Consumer Price Index
CSD Community Services District
ft3 cubic feet (foot)
FY fiscal year
mgd million gallon(s) per day
NPDES National Pollutant Discharge Elimination System
O&M operation and maintenance
report Water and Wastewater User Rate Study
SRF State Revolving Fund
WWTP wastewater treatment plant
Water and Wastewater User Rate Study
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1. Introduction
This Water and Wastewater User Rate Study (report) presents the results of Jacobs’ water and wastewater rate analysis and proposed water and wastewater rates for the City of Fortuna (City or utility). The City has experienced increased operating costs and escalating capital costs that have strained the utility’s financial resources. Economic pressures caused by supply chain disruptions brought on by the COVID pandemic and a competitive labor market have caused dramatic increases in operating costs. Both the water and wastewater system need capital improvements to replace aging infrastructure or to comply with treatment regulations. The City has managed the utility’s increasing costs with a revenue stream that has not increased at the same rate as its costs. The most recent change to the City’s water and wastewater rates occurred in 2012. From 2012 to 2024, the California Construction Cost Index (CCI) and the California Consumer Price Index (CPI) have increased approximately 70 percent and 39 percent, respectively.

Jacobs recommends that the City adjust its water and wastewater rates to help ensure that sufficient revenues will be generated to meet current debt service requirements and the City’s other financial commitments. Jacobs also recommends that the City continue to deposit monies into the capital reserve fund that will be used to pay for anticipated system repairs and replacements on a “pay-as-you-go” basis.

The information in this report relies on data provided by the utility and other public sources. Financial and customer data presented in this report were provided by the City. Rate and fee data presented for other utilities were collected from publicly available information from utility websites or utility customer service departments. The water and wastewater utilities are distinct enterprise funds within the City and are examined separately. Projected water and wastewater expenditures and revenues presented herein are based on assumptions presented in this report. Proposed water and wastewater rates may need to be adjusted if currently unknown operating or capital expenditures affect the utility’s revenue requirements or if material changes to the utility’s customer base or usage patterns occur. This report has been prepared exclusively for Jacobs’ client and no liability is accepted for any use of or reliance on the report by third parties.

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2. Methodology
For this analysis, the cash basis method was used to determine the revenue requirements of the water system and wastewater system. The cash basis method is typically used by government-owned utilities and measures the total revenues needed to meet the utility’s forecast cash expenditures. The essence of this method is that the revenues generated by the City must be sufficient to cover all its cash needs, as well as any other financial commitments for the period of the analysis. The rate analysis follows rate-making guidance provided in the American Water Works Association document M1 Principles of Water Rates, Fees, and Charges, Seventh Edition (2016) that serves as the industry standard for developing water and wastewater rates.

The Jacobs team reviewed the City’s financial and customer data and summarized revenue requirements for the water and wastewater utilities. This analysis is the foundation for developing rate models for a 5- year forecast period. Projections consider potential impacts on operations and maintenance (O&M) costs and capital financing requirements of the City’s prospective improvements to its water and wastewater systems. Projected revenue requirements will be developed for each utility and may include provisions for the following:
▪ O&M costs
▪ Administrative costs
▪ Renewal and replacement costs
▪ Debt-funded capital outlays, including existing outstanding debt service and projected debt for bonds and loans anticipated to fund future Capital Improvement Plan (CIP) projects ▪ Maintaining targeted reserve balances
▪ New and/or one-time expenditures
In determining the revenue requirements for the City’s water and wastewater utilities, Jacobs evaluated the revenue projections based on the cash basis approach. Non-rate revenue is subtracted from the total revenue requirements to determine the amount of revenue requirements to be recovered from user rates.

Figure 2-1 presents an overview of the process used to determine the rate revenue requirements.

Figure 2-1. Revenue Requirements Recovered from Rates
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Changes in the water and wastewater utilities costs were projected over the 5-year analysis period. Annual percentage changes in the rate revenue requirements were applied to the City’s existing rate structure to project the required adjustments in the water and wastewater rate revenues through fiscal year (FY) 2029.

The City’s existing water rate structure consists of a monthly meter charge that varies based on meter size to reflect the potential demand placed on the system of a larger meter and the higher costs associated with meeting the demands of larger meters. The water rates also have a volumetric charge that is assessed on water consumption. The sewer rates have different classifications for different customer types to reflect the different demands placed on the system by different users. There is a separate rate class for residential, commercial, and industrial customers. The commercial users are classified into low, medium, or high rate classes depending on the strengths of their wastewater flows. The higher strength flows pay a higher rate compared to the lower strength flows because it costs more to treat higher strength flows.

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3. Assumptions
This financial analysis and rate study is based on projections of costs (both O&M and capital) that the City is expected to incur during the 5-year planning period, FY 2025 through FY 2029, and the revenues that the City expects to generate during the same period. The financial plan is based on a set of overall assumptions related to customer growth, inflation, and other factors, as well as the specific phasing of the utility’s capital spending.

The following general assumptions were used in developing the financial plan:
▪ Water and wastewater sales under existing rates are expected to remain constant over the analysis period. This is consistent with recent trends of customer accounts and rate revenue over the last 3 years.
▪ Escalation rates:
- Salaries: 10.0% Cost of Living Adjustment (COLA) in FY 2024, 3.0% COLA in the remaining years - Benefits: 10.0% per year
- Chemicals: 5.0% per year
- Utilities: 5.0% per year
- Capital: 5.0% in FY 2024 and 2025, 4.0% in FY 2026 and beyond - General: 3.0% per year
▪ Interest earned on investments: 1.0%
▪ Debt service coverage requirement: 1.25
▪ The City needs to keep a minimum of 6 months (180 days) of operating expenses in operating reserves and an additional targeted minimum balance of $3.0 million in the water capital reserves and $5.0 wastewater capital reserves.
▪ The City will use available operating and capital reserves to pay for unanticipated operating expenses and scheduled capital projects.
▪ Beginning available reserve balance in FY 2024 for each fund:
- Water Operating Fund: $2.5 million
- Water Capital Fund: $4.5 million
- Wastewater Operating Fund: $4.0 million
- Wastewater Capital Fund: $9.0 million
▪ Debt financing assumptions:
- No new debt for the water utility
- For wastewater, it is assumed the utility will receive a grant of $5.5 million for the wastewater plant upgrade and a low interest loan from the State Revolving Fund (SRF). It was assumed the term of the loan would be equal to current interest rates on SRF loans of approximately 1.72% with a term of 30 years.
▪ For FY 2024, the average residential water use for the City customers is approximately 6 ccf (4,500 gallons) per month. This consumption level will be used to calculate impacts to residential water and wastewater bills.
▪ The City will add a utility superintendent in FY 2025 at a burdened rate of $120,000 per year. The cost will be shared evenly between the water and wastewater utility. ▪ To account for consumer response to proposed rate increases, an adjustment was made to consumption based rate revenue to reflect lower consumption after rate increases were implemented.

It was assumed water consumption would reduce by 1.5 percent for every 10 percent in rate increases.

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4. Water Rate Study
The City maintains and operates a water and wastewater utility serving residential, commercial, and industrial customers in Fortuna, CA. The City is governed by a city council. The day-to-day operations of the system are directed by the Public Works Director and a staff of approximately 16 water personnel. The City’s FY runs from July 1 to June 30 (that is, “FY 2023” means the data are from July 2022 through June 2023). Financial data will be reported for the City’s FY. Customer data are reported in calendar year (that is, January through December).

4.1 Background Information
The water utility operates as an enterprise fund and pays for its operating and capital costs through user charges. The utility has a water operations fund and a capital improvement fund. The water utility fund has three divisions:
▪ Administration
▪ Pumping/Treatment/Storage
▪ Transmission/Distribution
The utility has the responsibility for:
• Water production and treatment
o Operate and maintain four water wells producing 500 million gallons per year o Water treatment
o Permitting and reporting
• Water Storage and distribution:
o O&M of four water storage facilities
o Maintenance of 42 miles of distribution pipeline
o O&M of eight pump stations
o Maintain water service connections and water meters
o Conduct meter reading, meter testing, and meter replacement o Permitting and Reporting
The Water Operations Fund needs to keep a minimum of 6 months of operating expenses in reserve and has a targeted minimum balance of approximately $3.0 million for the Capital Improvement Fund. The 2017 Revenue Bond issuance has a debt service coverage requirement of 1.25, which means the annual net revenues of the system (gross revenues minus operating expenses) must be 125% of the system’s annual debt service requirements.

4.1.1 Customer Data
Table 4-1 presents the water customer accounts from 2021 through 2023. The data represents the average number of accounts for each customer class over each 12-month calendar year period. Customer accounts have remained relatively stable over the last 3 years. The average number of accounts for 2023 is 4,628. Residential customers represent nearly 90% of total accounts.

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Table 4-1. Water Customer Accounts, 2021-23
Rate Class 2021 2022 2023
Residential 4,123 4,135 4,153
Commercial 341 338 331
Schools 15 15 15
Theatre/Church/Hall 28 27 27
Mobile Home Parks 3 3 3
Motels/RV Parks 11 11 11
Dorm/Convalescent 9 9 9
Hospital 1 1 1
Industrial 4 4 4
Irrigation 33 32 32
Residential Outside City 41 41 41
Comm/Res Combo 1 1 1
Total 4,610 4,616 4,628
Note: Customer data are for calendar year (that is, January through December).

Table 4-2 presents water sales revenues and billed water usage (in ccf) for the water utility for calendar year 2021 through 2023. The revenues and consumption are for all active accounts during the 12-month period. The City provides retail water service to residential, commercial, and industrial customers located inside and outside the City limits. Total water consumption ranged from nearly 440,000 ccf in 2023 to approximately 465,000 ccf in 2021. Water revenue was about $2.28 million in 2021 and in 2023.

Residential customers accounted for nearly 74% of water revenues in 2023.

Table 4-2. Water Customer Usage and Revenues, Calendar Year 2021-23 Water Usage (ccf) Water Revenue
Rate Class 2021 2022 2023 2021 2022 2023
Residential 348,743 329,423 325,828 $1,689,663 $1,677,130 $1,690,161 Commercial 49,034 44,966 50,598 $265,216 $262,030 $271,336 Schools 3,537 3,772 4,110 $28,763 $29,269 $29,898
Theatre/Church/Hall 2,521 1,409 1,494 $12,428 $11,190 $11,163 Mobile Home Parks 14,974 16,949 15,932 $76,172 $84,366 $84,748 Motels/RV Parks 11,929 11,635 11,750 $47,451 $46,860 $47,071 Dorm/Convalescent 10,512 11,030 10,275 $37,855 $39,051 $36,831 Hospital 6,098 6,125 3,023 $16,481 $16,487 $15,712
Industrial 1,798 1,648 1,393 $6,053 $5,748 $5,361
Irrigation 10,928 9,184 8,801 $68,437 $64,981 $64,338
Residential Outside City 4,517 3,843 4,215 $26,472 $24,792 $25,861 Comm/Res Combo 178 258 316 $2,212 $2,212 $2,241
Total 464,767 440,241 437,734 $2,277,203 $2,264,116 $2,284,719 Note: Customer data are for Calendar year (that is, January through December).

4.1.2 Existing Rates
Tables 4-3 presents the current rate schedules for the City’s water system. Metered water rates include a monthly minimum meter charge based on the size of the meter and a volume charge. Larger meter sizes pay a higher monthly charge to reflect the potential demand placed on the water system of providing service to a larger meter and the higher costs associated with meeting those demands. Volumetric charges are based on each customer’s monthly water consumption. The monthly minimum charge Water and Wastewater User Rate Study
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includes the first 3 ccf of water use in the winter months (November through April) and 5 ccf in the summer months (May through October). The volume charge is $1.90 per ccf over the minimum water included in the base charge. Outside city customers pay 1.5 times the rate for inside city customers.

Table 4-3. Current Water Rates, Inside City
Meter Size (inches)
Base Charge
($/mo)
5/8 by 3/4 $23.04
1 $44.07
1 1/2 $87.21
2 $147.61
3 $320.16
4 $561.73
6 $1,251.95
Volume Charge ($/ccf) $1.90
$/ccf =dollar(s) per one hundred cubic feet
$/mo = dollar(s) per month

4.1.3 Historical Revenues
Figure 4-1 shows historical revenues for the water utility for FY 2020/21 through FY 2022/23. Total system revenues ranged from approximately $2.4 million in FY 2020/21 to $2.7 million in FY 2022/23. In FY 2022/23, water rate revenues accounted for approximately $2.3 million, or 87%, of total revenue. The remaining non-rate revenue was generated by miscellaneous other charges and interest revenue.

Figure 4-1. Historical Revenues, FY 2021–2023
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4.1.4 Historical Operation and Maintenance Expenses
O&M expenses include all costs associated with operating and maintaining the water utility, including personnel, utilities, materials and supplies, and general and administrative costs. Table 4-4 summarizes actual cash operating expenses for FY 2020/21 through FY 2022/23 and Budget FY 2023/24. Cash operating expenses, which exclude depreciation and debt service expenses, increased from approximately $1.8 million in FY 2021 to approximately $1.9 million in FY 2022/23. The FY 2023/24 has total expense for the water utility increasing to approximately $2.1 million. Each of the three cost centers account for approximately 33 percent of total expense in the FY 2023/24 budget.

Table 4-4. Operation and Maintenance Expenses, FY 2020/21–2023/24 Division
FY
2020/21
FY
2021/22
FY
2022/23
FY
2023/24
Transmission and Distribution
Salaries and Benefits $344,043 $398,432 $373,138 $399,982 Services and Supplies $206,960 $164,200 $260,000 $264,500 Capital Outlay $24,584 $497,403 $0 $40,000
Subtotal $575,587 $1,060,035 $633,138 $704,482
Pumping, Treatment, and Storage
Salaries and Benefits $273,983 -$12,757 $222,025 $238,487 Services and Supplies $318,750 $300,628 $358,500 $360,000 Capital Outlay $7,906 $29,431 $25,000 $122,500
Subtotal $600,639 $317,302 $605,525 $720,987
Administration
Salaries and Benefits $432,186 $452,526 $443,554 $483,589 Services and Supplies $154,864 $152,100 $169,234 $199,155 Capital Outlay $0 $0 $0 $0
Subtotal $587,050 $604,626 $612,788 $682,744
Total $1,763,276 $1,981,963 $1,851,451 $2,108,213

4.2 Existing Debt Service Expenses
Existing debt service costs are the annual principal and interest payments associated with outstanding bonds. In 2017, the City issued the Series 2017 Water Revenue Bond to refund a previous bond issuance.

For FY 2024, the principal and interest payments are approximately $400,000.

4.3 Revenue Requirements
For this analysis, the cash basis method was used to determine the revenue requirements of the water system. The essence of this method is that the revenues generated by the City must be sufficient to cover all its cash needs, as well as any other financial commitments for the period of the analysis. The components of the City’s water utility revenue requirements include:

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▪ O&M expenses
▪ Pay-as-you-go capital
▪ Debt service requirements
The total water system O&M expenses include salaries, materials, supplies, chemicals, and other daily operating expenses. For the purposes of these financial projections, the O&M expenses were separated into the following divisions:
▪ Transmission and Distribution
▪ Pumping, Treatment, and Storage
▪ Administration
Table 4-5 presents the projected operating expenses for the utility for the analysis period. The City’s operating expenses are budgeted to be approximately $2.1 million in FY 2023/24. Over the analysis period, O&M expenses are estimated to increase to approximately $2.6 million by FY 2028/29, a cumulative increase of 22% from FY 2023/24 levels.

Table 4-5. Projected Operating Expenses
Cost Center
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
FY
2028/29
Transmission and Distribution
Salaries and Benefits $399,982 $410,985 $435,360 $461,671 $490,097 $520,833 Services and Supplies $264,500 $273,425 $282,667 $292,239 $302,152 $312,420 Capital Outlay $40,000 $41,600 $43,264 $44,562 $45,899 $47,276 Subtotal $704,482 $726,010 $761,291 $798,472 $838,148 $880,529 Pumping, Treatment, and Storage
Salaries and Benefits $238,487 $248,912 $263,707 $279,678 $296,935 $315,595 Services and Supplies $360,000 $376,120 $392,988 $410,511 $428,846 $448,032 Capital Outlay $122,500 $127,400 $132,496 $136,471 $140,565 $144,782 Subtotal $720,987 $752,432 $789,191 $826,660 $866,346 $908,409 Administration
Salaries and Benefits $483,589 $488,805 $514,550 $542,177 $571,851 $603,756 Services and Supplies $199,155 $205,398 $211,841 $218,492 $225,357 $232,443 Capital Outlay $0 $0 $0 $0 $0 $0
Subtotal $682,744 $694,202 $726,391 $760,669 $797,208 $836,200 Total $2,108,213 $2,172,644 $2,276,874 $2,385,801 $2,501,701 $2,625,137

4.4 Debt Service
The system debt service requirements consist of the principal and interest payments on its outstanding debt. In addition, the covenants on the City’s outstanding debt requires the City to generate net revenues (gross revenues minus operating expenses) that are 1.25 times the annual debt service payments on its Water and Wastewater User Rate Study
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outstanding debt. Revenues in excess of the debt service and O&M costs can be used to pay for capital outlays. The Series 2017 Revenue Bonds have an annual debt service payment of approximately $400,000 in FY 2023/24 and remain relatively constant through FY 2028/29.

Figure 4-2 presents the projected annual debt service for existing over the analysis period. No new debt is projected to be issued over the analysis period. Annual debt service payments on existing is approximately $400,000 through FY 2028/29.

Figure 4-2. Projected Annual Debt Service, Water

4.5 Capital Improvements
The City’s CIP includes water system capital improvements that are needed to replace aging infrastructure and continue to meet forecast system water demands. The largest planned capital expenditures for the water system (in 2023 dollars) during the analysis period are:
▪ Downtown Waterline Replacement Project: $1.9 million
▪ Drake Hill Road Water Main Replacement: $950,000
▪ 12th Street Water Main Project: $880,000
▪ Carson Woods Road Water Line Replacement Project: $830,000 ▪ Waterline Replacement Project: $1.0 million
Total capital expenditures over the analysis period are approximately $8.0 million (2023 dollars). Project costs were increased annually to adjust for inflation. Total inflated capital costs included in the analysis are nearly $9.0 million. Appendix A provides a list of projects included in the water system CIP from FY 2023/24 through FY 2028/29.

The utility plans to fund the water system capital improvements from capital reserves and user rates. City management will make necessary financial decisions to ensure capital reserves are sufficient to cover future capital expenditures. The City does not currently plan to issue new debt to pay for additional water system capital improvements.

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4.6 Total System Revenue Requirements
Table 4-6 summarizes the revenue requirements for the analysis period. The total system rate revenue requirement is expected to range between $2.9 in FY 2024/25 to $4.3 million through FY 2028/29. Rate increases will be necessary to pay for escalation in O&M expenses and to fund the capital improvement projects. Increases are also need to maintain sufficient working capital equal to approximately 6 months of operating expenses and debt service coverage requirements.

Table 4-6. Projected Revenue Requirements
Projected Projected Projected Projected Projected
Item FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Revenue Requirements
Operation and Maintenance
Transmission & Distribution $726,010 $761,291 $798,472 $838,148 $880,529 Pumping, Treatment & Storage $752,432 $789,191 $826,660 $866,346 $908,409 Administration $756,002 $790,045 $826,232 $864,738 $905,756 Other
Subtotal O&M $2,234,444 $2,340,528 $2,451,364 $2,569,232 $2,694,694 Capital Costs
Existing Debt Service $399,275 $397,025 $399,150 $395,650 $396,525 New Debt Service $0 $0 $0 $0 $0
Transfer to Improvement Fund $1,024,942 $1,210,486 $1,291,299 $1,300,845 $1,298,138 Subtotal Capital Costs $1,424,217 $1,607,511 $1,690,449 $1,696,495 $1,694,663 Total Revenue Requirements $2,940,749 $3,658,661 $3,948,039 $4,141,814 $4,265,727 Less Non-rate revenue
Other revenue $78,000 $78,000 $78,000 $78,000 $78,000
Subtotal $78,000 $78,000 $78,000 $78,000 $78,000
Uses of (additions to) Fund Balance -$62,251 -$52,315 -$54,659 -$58,126 -$61,872

Annual Requirements from Rates $3,642,912 $3,922,355 $4,118,473 $4,245,853 $4,373,229

4.7 Proposed Rates
As of the beginning of FY 2023/24, the City has an estimated combined $7.0 million in available operating and capital reserves. As discussed previously, this analysis assumes that the utility will use a combination of rate revenue and existing reserves to pay for the planned projects. To have sufficient funds to pay for increases in operating expenses, fund necessary capital improvements, repay the existing debt service, maintain appropriate debt service coverage requirements, and maintain the 6 months of operating expense in reserves, water rate increases will be required.

For this analysis, rate increases are introduced every year beginning in FY 2024/25. Table 4-7 presents the projected annual rate increases needed to meet the utility’s revenue requirements. The rate increases presented would be applied to both fixed and consumption charges and would impact all customer classes. Appendix B presents the water rate schedule for all customers for FY 2024/25-2028/29.

Table 4-7. Projected Annual Rate Increases
FY Annual Water Increase
FY 2024/25 60.0%
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FY Annual Water Increase
FY 2025/26 5.0%
FY 2026/27 5.0%
FY 2027/288 3.0%
FY 2028/29 3.0%
Overall Increase[a] 87.1%
[a] Overall increase represents compounded increase over the analysis period.

4.8 Projected System Revenues
The revenue projections are made up of two major sources: rate revenues and non-rate revenues. In FY 2023/24, water rate revenues were estimated at $2.3 million. Other revenues are projected to amount to approximately $78,000 in FY 2023/24 and remain at this level throughout the study period.

Projected system rate revenues under existing rates are expected to remain constant over the analysis period. Revenues and the number of accounts has been relatively constant from FY 2020/21 through FY 2022/23. It was assumed this trend would continue through the analysis period. Projected system rate revenues, with the rate increases presented herein, are projected to increase from $2.3 million in FY 2023/24 to nearly $4.5 million in FY 2028/29. Table 4-8 provides the projected total system revenue with proposed rate adjustments.

Table 4-8. Projected Total System Revenue with Proposed Rate Adjustments FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
FY
2028/29
Water Revenue $2,340,000 $3,642,912 $3,922,355 $4,118,473 $4,245,853 $4,373,229 Misc. Revenues $78,000 $78,000 $78,000 $78,000 $78,000 $78,000 Total Revenue $2,418,000 $3,720,912 $4,000,355 $4,196,473 $4,323,853 $4,451,229 Operating and capital reserves will be drawn down to help pay for the planned capital projects and increased O&M expenses. City financial policies target a minimum of 6 months of operating expenses in operating reserves and an additional allowance of approximately $3.0 million capital reserves for unplanned capital needs.

Figure 4-3 presents the rate revenue requirements for the utility during the analysis period and projected revenues under existing and proposed rates. Rate revenue requirements consist of O&M expenses, administrative expenses, and debt service requirements. As Figure 4-3 illustrates, existing rate levels (green line) will not be sufficient to meet the projected revenue requirements and increases in rate revenues will be necessary to pay for projected costs.

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Figure 4-3. Revenue Requirements and Rate Revenues
Figure 4-4 presents the ending fund balance for the operating and capital reserve from FY 2023/24 through FY 2028/29. The capital reserve fund is drawn down in FY 2023/24 to pay for budgeted capital improvements. The revenues generated by the system are sufficient to maintain the 6-month operating reserve balance and capital fund target.

Figure 4-4. Ending Capital and Operating Reserve Balance Figure 4-5 presents the projected debt coverage for the water utility. The analysis shows that, with the proposed rates, the utility is projected to exceed the debt coverage requirements on the current bonded Water and Wastewater User Rate Study
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debt of 125% in each year of the study period. The financial plan presented herein does not anticipate any new debt issues during the study period. Based on the proposed water rate increases, Jacobs projects that the City will generate sufficient revenue to cover its projected expenses and to meet any bond coverage requirements for FY 2023/24 through FY 2028/29.

Figure 4-5. Debt Service Coverage, Water Utility
Refer to Appendix C for projected sources and uses of funds for the utility for the analysis period.

4.9 Impact on Typical User Bills
Figure 4-6 shows the impact of the proposed FY 2024/25 to FY 2028/29 rates on the bills of typical residential users. Residential users that consume 4,500 gallons per month will see an increase in their water bills of $20.08 over the 5-year study period.

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Figure 4-6. Typical Residential Water Bill for 4,500 Gallons, Proposed Rates (FY 2024/25–FY 2028/29)

4.10 Alternative Water Rate Increase Scenario
Rate increases can be sculpted in several ways to achieve the goals of the utility. Instead of a large, one-time increase in Year 1 of the analysis, the increases could be phased in over a number of years to make the increases more levelized. Table 4-9 presents an alternative rate strategy that achieves the operating and capital reserve targets set by the utility. By the end of the analysis, the overall rate increase would be slightly higher when compared to the impacts of a one-time large increase in Year 1.

Table 4-9. Projected Annual Rate Increases, Scenario 1
FY Annual Water Increase
FY 2024/25 45.0%
FY 2025/26 20.0%
FY 2026/27 10.0%
FY 2027/28 3.0%
FY 2028/29 3.0%
Overall Increase[a] 103.1%
[a] Overall increase represents compounded increase over the analysis period.

Figure 4-7 presents the ending fund balance for the operating and capital fund under the alternative rate increase strategy. As mentioned previously, the alternative approach achieves the utility’s target fund balances for the operating and capital funds.

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Figure 4-7. Ending Capital and Operating Reserve Balance, Scenario 1 Water and Wastewater User Rate Study
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5. Wastewater Rate Study
This section outlines the wastewater rate study.

5.1 Background Information
The Public Works Department’s Wastewater Division is responsible for the operations, maintenance, and capital infrastructure improvement for the City’s wastewater system. The Wastewater Division serves the residential, commercial, and industrial wastewater customers both within and outside the City limits.

The Public Works director supervises the daily operational activities of the Wastewater Division with 16 employees.

Like the water utility, the wastewater utility is an enterprise fund and charges service user fees to fund its operations and capital expenditures. The wastewater utility has both a wastewater operations fund and a capital improvement fund. The City’s Wastewater Division has three departments:
▪ Collections
▪ Treatment
▪ Administration
The wastewater utility is responsible for:
• Wastewater Collection
o Maintain 5,000 wastewater service connections
o Operate and maintain nine sewage lift stations
o Maintain 42 miles of collection system pipeline
• Wastewater Treatment:
o Operate and maintain the wastewater treatment facility (with capacity for 1.5 million gallons per day)
o Coordinate the pretreatment program
o Implement the sanitary wastewater management plan
▪ Fats, oil, and grease program
▪ Inflow and Infiltration reduction
o Process safety management plan
In addition, the Wastewater Operations Fund is required to have in reserves 180 days of operating expenses, and maintain a targeted balance of $5.0 million in the Capital Improvement fund.

The 2017 Revenue Bond issuance has a debt service coverage requirement of 1.25, which means the net revenues of the system (gross revenues minus operating expenses) must be 125% of the system’s annual debt service requirements.

5.1.1 Customer Data
Table 5-1 presents the wastewater customer accounts from 2021 through 2023. The data represents the average number of accounts for each customer class over the 12-month period. Customer accounts have remained relatively stable over the last 3 years with growth rates of about 1% and 0.5% in 2022 and 2023 respectively. The average number of accounts for 2023 is 4,260. Residential customers represent Water and Wastewater User Rate Study
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approximately 92% of the total wastewater customers. The wastewater utility also receives flows from Palmer Creek Community Service District (CSD).

Table 5-1. Wastewater Customer Accounts, Calendar Year 2021-23 Rate Class 2021 2022 2023
Residential 1,881 1,911 1,951
Multi-Family 1,980 1,972 1,951
Mobile Home Park 3 3 3
Light Commercial 297 301 302
Medium Commercial 35 36 36
Heavy Commercial 12 13 13
Outside City Limit – Residential 3 3 3
Commercial / Residential Combo 1 1 1
Palmer Creed CSD 1 1 1
Total 4,213 4,241 4,261
Note: Customer data are for Calendar year (that is, January through December).

Table 5-2 presents wastewater sales revenues for calendar years 2021 through 2023. The revenues are for all active accounts during the 12-month period. The City provides wastewater service to residential, commercial, and industrial customers located inside and outside the City limits. Currently the City does not have any industrial wastewater customers. Customer wastewater bills are based on water consumption presented in Table 4-2. Palmer Creek CSD flows ranged from 6.3 million cubic feet in 2021 to 7.9 million cubic feet in 2023. Wastewater revenue increased from $3.5 million in 2021 to approximately $3.6 million in 2023. Residential, multi-family, and mobile home park customers accounted for nearly 78% of water revenues in 2023.

Table 5-2. Wastewater Customer Revenues, FY 2021-2023
Rate Class 2021 2022 2023
Residential $1,107,279 $1,100,740 $1,116,524
Multi-Family $1,422,556 $1,508,601 $1,492,220
Mobile Home Park $131,648 $144,428 $134,022
Light Commercial $398,070 $403,932 $384,876
Medium Commercial $235,389 $238,554 $239,739
Heavy Commercial $114,272 $121,951 $120,787
Outside City Limit – Residential $3.074 $2,901 $2,525
Commercial / Residential Combo $5,278 $6,036 $13,088
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Palmer Creek CSD $54,539 $62,729 $68,624
Total $3,472,106 $3,589,872 $3,572,405
Note: Revenue data is for Calendar year (that is, January through December).

5.1.2 Existing Rates
Tables 5-3 present the current rate schedules for the City’s wastewater system. The monthly wastewater rates consist of a base rate and a volume charge. Customer classes include residential, commercial, industrial, and Palmer Creek CSD. Commercial customers are further classified into light, medium, or heavy categories based on the strength of their wastewater flows. The higher strength flows pay a higher rate compared to the lower strength flows because it costs more to treat higher strength flows.

The monthly base charge includes the first 500 cubic feet (ft3) for residential, light commercial, medium commercial and heavy commercial customers while it is the first 2,590 ft3for industrial and Palmer Creek CSD customers. Palmer Creek CSD pays slightly lower rates than other commercial customers as they operate their own collection and billing systems. Volume charges are based on actual wastewater usage with different variable rates for all categories of customers. The outside city customers pay 50% more than the rate for inside city customers.

Table 5-3. Current Wastewater Rates, Inside City
Existing
Service Charge FY 2023-24
Residential (includes first 500ft3) $38.75
Volume charge over 500 ft3($/ccf) $8.61
Light Commercial (includes first 500 ft3; strength factor <200 mg/l) $38.02 Volume charge over 500 ft3($/ccf) $8.45
Medium Commercial (includes first 500 ft3; strength factor between 200-500 mg/l) $49.02
Volume charge over 500 ft3($/ccf) $10.89
Heavy Commercial (includes first 500 ft3; strength factor >500 mg/l) $96.69 Volume charge over 500 ft3($/ccf) $21.49
Industrial (includes first 2590 ft3) $767.56
Volume charge over 2590 ft3($/ccf) $29.64
Palmer Creek CSD (includes first 2590 ft3) $168.02
Volume charge over 2590 ft3($/ccf) $6.49
Special Agreements
Residential, Commercial, and Industrial
BOD ($/lb) $1.36
TSS/ ($/lb) $1.25
Volume ($/ccf) $5.19
Palmer Creek CSD
BOD ($/lb) $1.23
TSS/ ($/lb) $1.13
Volume ($/ccf) $3.91

5.1.3 Historical Revenues
Figure 5-1 shows historical revenues for the wastewater utility for FY 2020/21 through FY 2022/23. Total system revenues were relatively stable and approximately $3.49 million in FY 2020/21, $3.5 million in FY Water and Wastewater User Rate Study
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2021/22, and $3.5 million in FY 2022/23. Over the 3-year period, wastewater service charges accounted for at least 98% of the total revenue. The remaining non-rate revenue was generated by miscellaneous other charges and interest revenue.

Figure 5-1. Historical Revenues, FY 2020/21–2022/23

5.1.4 Historical Operation and Maintenance Expenses
The historical O&M expenses consist of all relevant costs for the operations and maintenance for the public wastewater system over the last 3 years. These include: personnel, utilities, materials, and supplies, overhead and administrative costs across collections, treatment, and administration units of the Wwastewater Division.

Table 5-4 summarizes the actual cash operating expenses, excluding depreciation and debt service expenses, from FY 2022/21 to FY 2022/23 and Budget FY 2023/24. Over the 3-year period, the operating expenses increased by 6.8% from $2.4 million in FY 2020/21 to $2.5 million in FY 2022/23.

Operating expenses for FY 2021/22 showed a decrease in overall expenses when compared to FY 2020/21. The primary reason for the decrease was a credit received from the State of California retirement system to account for a higher than normal rate of return on system investments. The FY 2023/24 has total expense for the wastewater utility increasing to approximately $3.0 million. The treatment cost center represents approximately 59% while collections and administration divisions account for 17% and 24% of the total expenses, respectively.

Table 5-4. Operation and Maintenance Expenses, FY 2021–2023 Division FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
Collections
Salaries and Benefits $305,812 $348,301 $331,918 $354,543 Services and Supplies $34,135 $19,991 $56,800 $100,500
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Division FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
Capital Outlay $130,120 $0 $4,050 $40,000
Subtotal $470,067 $368,292 $392,768 $495,043
Treatment
Salaries and Benefits $663,743 $295,716 $626,298 $685,125 Services and Supplies $667,382 $773,908 $878,500 $915,000 Capital Outlay $4,478 $29,431 $25,000 $179,500
Subtotal $1,335,603 $1,099,055 $1,529,798 $1,779,625
Administration
Salaries and Benefits $411,408 $445,132 $432,498 $472,787 Services and Supplies $187,769 $182,128 $213,330 $258,011 Capital Outlay $0 $0 $0 $0
Subtotal $599,177 $627,260 $645,828 $730,798
Total $2,404,847 $2,094,607 $2,568,394 $3,005,466

5.2 Existing Debt Service Expenses
Existing debt service costs are the annual principal and interest payments associated with outstanding bonds. In November 2017, the City issued an $8.74 million Series 2017 Wastewater Revenue Bond to refund a previously issued series 2006 bond. For FY 2023/24, the principal and interest payments are approximately $695,000.

5.3 Revenue Requirements
Like the water system, the cash basis method was used to determine the revenue requirements of the wastewater system. The is imperative to ascertain that the revenues generated by the City is adequate to cover all its cash needs, and other financial obligations for the period of the analysis. The components of the City’s revenue requirements include:
▪ O&M expenses
▪ Pay-as-you-go capital
▪ Debt service requirements
The total wastewater system O&M expenses include salaries, materials, supplies, chemicals, and other daily operating expenses. For the purposes of these financial projections, the O&M expenses were separated into the following divisions:
▪ Collections
▪ Treatment
▪ Administration
Table 5-5 presents the projected operating expenses for the utility for the analysis period. The City’s operating expenses are budgeted to be approximately $3.0 million in FY 2023/24. Over the analysis period, O&M expenses are estimated to increase to approximately $3.9 million by FY 2028/29, a cumulative increase of 27% from FY 2023/24 levels.

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Table 5-5. Projected Operating Expenses
Cost Center
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
FY
2028/29
Collections
Salaries and Benefits $354,543 $362,247 $383,703 $406,861 $431,879 $458,929 Services and Supplies $100,500 $103,575 $106,745 $110,014 $113,384 $116,858 Capital Outlay $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 Subtotal $495,043 $505,822 $530,448 $556,875 $585,263 $615,787 Treatment
Salaries and Benefits $685,125 $702,298 $744,924 $790,985 $840,800 $894,717 Services and Supplies $915,000 $954,350 $994,268 $1,035,936 $1,079,433 $1,124,843 Capital Outlay $179,500 $188,475 $196,014 $203,855 $212,009 $220,489 Subtotal $1,779,625 $1,845,123 $1,935,206 $2,030,776 $2,132,242 $2,240,049 Administration
Salaries and Benefits $472,787 $475,966 $501,063 $527,994 $556,924 $588,030 Services and Supplies $258,011 $268,439 $279,315 $290,658 $302,489 $314,831 Capital Outlay $0 $0 $0 $0 $0 $0
Subtotal $730,798 $744,405 $780,378 $818,652 $859,413 $902,861 Total $3,005,466 $3,095,350 $3,246,032 $3,406,303 $3,576,917 $3,758,697

5.4 Debt Service
The system debt service requirements consist of the principal and interest payments on its outstanding debt. In addition, the covenants on the City’s outstanding debt requires the City to generate net revenues (gross revenues minus operating expenses) that are 1.25 times the annual debt service payments on its outstanding debt. Revenues in excess of the debt service and O&M costs can be used to pay for capital outlays. The Series 2017 Revenue Bonds have an annual debt service payment of approximately $695,094 in FY 2023/24 and remain relatively constant through FY 2028/29.

This analysis assumed new debt would be issued to pay for the wastewater treatment plant NPDES project.

The financial analysis assumes that the City will receive grants of $5.5 million and a state sponsored low interest loans to cover the costs associated with the CIP. The assumed bonds each have a term of 30 years, an interest rate of 1.72 percent. Figure 5-2 presents the projected annual debt service for existing and new debt over the analysis period. Annual debt service payments on existing and new debt are projected to increase from $695,000 in FY 2023/24 to approximately $2.0 million in FY 2028/29.

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Figure 5-2. Projected Annual Debt Service, Wastewater

5.5 Capital Improvements
The CIP for the City includes public wastewater system capital improvements that are needed to replace aging infrastructure and continue to meet forecast system demands. The utility plans to fund the wastewater system capital improvements from capital reserves and user rates. The City management will make necessary financial decisions to ensure capital reserves are sufficient to cover future capital expenditures. The largest planned expenditures for the water system during the analysis period are:
▪ National Pollutant Discharge Elimination System (NPDES) compliance project: $35.2 million ▪ Wastewater Lining Project: $3.0 million
▪ Sanitary Wastewater Collections System CCTV: $0.6 million ▪ Wastewater Grant Fund Projects: Hilltop Wastewater Main Project: $0.5 million ▪ Wastewater Lining Project: $1.0 million
Appendix A provides a list of projects included in the wastewater system CIP from FY 2023/24 through FY 2028/29. Total capital expenditures are estimated at $42.2 million (2023$). When the costs are adjusted for inflation, the total capital costs are approximately $48.5 million. Capital projects will be funded through a combination of reserves, rate revenue, debt financing, and grant funding.

5.6 Total System Revenue Requirements
Table 5-6 summarizes the revenue requirements for the analysis period. The total system rate revenue requirement is expected to range between $4.3 million in FY 2024/25 to $6.2 million through FY 2028/29. Rate increases will be necessary to pay for escalation in O&M expenses, new debt service requirements, cash funded capital outlays, and to provide sufficient working capital equal to approximately 6 months of operating expenses.

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Table 5-6. Projected Revenue Requirements
Projected Projected Projected Projected Projected
Item FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Revenue Requirements
O&M
Collection $505,822 $530,448 $556,875 $585,263 $615,787 Treatment $1,845,123 $1,935,206 $2,030,776 $2,132,242 $2,240,049 Administration $806,205 $844,032 $884,216 $926,944 $972,418 Other
Subtotal $3,157,150 $3,309,686 $3,471,867 $3,644,448 $3,828,254 Capital Costs
Existing Debt Service $688,094 $688,844 $688,594 $692,219 $689,719 New Debt Service $0 $322,000 $966,000 $1,288,000 $1,288,000 Transfer to Improvement
Fund
$3,192,306 $4,374,825 $4,205,925 $1,172,478 $1,190,574
Subtotal $3,880,400 $5,385,669 $5,860,518 $3,152,696 $3,168,293 Total Requirements $6,503,490 $7,037,550 $8,695,355 $9,332,385 $6,797,144 Less Non-rate revenue
Other revenue $51,000 $51,000 $51,000 $51,000 $51,000
Grant Revenue $0 $2,750,000 $2,750,000 $0 $0
Subtotal $51,000 $2,801,000 $2,801,000 $51,000 $51,000
Uses of (additions to) Fund
Balance
$2,243,490 -$75,223 -$79,979 -$85,109 -$90,644
Annual Requirements from
Rates
$4,743,060 $5,969,578 $6,611,364 $6,831,253 $7,036,190

5.7 Proposed Rates
As of the beginning of FY 2023/24, the City has an estimated combined $13.0 million in available operating and capital reserves, which includes approximately $1.5 million to cover 6 months of operating expenses. As discussed previously, this analysis assumes that the utility will use a combination of rate revenue and existing reserves to pay for the planned projects. It was also assumed the wastewater utility will received a grant from the SRF program of $5.5 million and also issue new debt to help pay for the NPDES wastewater treatment plant project. To have sufficient funds to pay for increases in operating expenses, repay the existing and new debt service, maintain appropriate debt service coverage requirements, and maintain the 6 months of operating expense in reserves, wastewater rate increases will be required.

For this analysis, rate increases are introduced every year beginning in FY 2024/25. Table 5-7 presents the projected annual rate increases needed to meet the utility’s revenue requirements. The rate increases presented would be applied to both fixed and consumption charges and would impact all customer classes. Appendix E presents the wastewater rate schedule for all customers for FY 2024/25 through FY 2028/29.

Table 5-7. Projected Annual Rate Increases
FY Annual Wastewater Increase
FY 2024/25 40.0%
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FY Annual Wastewater Increase
FY 2025/26 25.0%
FY 2026/27 10.0%
FY 2027/28 3.0%
FY 2028/29 3.0%
Overall Increase[a] 104.2%
[a] Overall increase represents compounded increase over the analysis period.

5.8 Projected System Revenues
The revenue projections are made up of two major sources: rate revenues and non-rate revenues. In FY 2023/24, wastewater revenues were estimated at $2.3 million. Other revenues are projected to amount to approximately $51,000 in FY 2023/24 and remain at this level throughout the study period.

Projected system rate revenues under existing rates are expected to remain constant over the analysis period. Revenues and the number of accounts has been relatively constant from FY 2020/21 through FY 2022/23. It was assumed this trend would continue through the analysis period. Projected system rate revenues, including the rate increases presented herein, are projected to increase from $3.5 million in FY 2023/24 to nearly $7.1 million in FY 2028/29. Miscellaneous revenues are projected to average approximately $51,000 per year over the analysis period. Table 5-8 provides projected total system revenue with proposed rate adjustments.

Table 5-8. Projected Total System Revenue with Proposed Rate Adjustments FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
FY
2028/29
Wastewater Revenue $3,450,000 $4,743,060 $5,969,578 $6,611,364 $6,831,253 $7,036,190 Misc. Revenues $46,000 $51,000 $51,000 $51,000 $51,000 $51,000 Total Revenue $3,496,000 $4,794,060 $6,020,578 $6,662,364 $6,882,253 $7,087,190 Operating and capital reserves will be drawn down to help pay for the planned capital projects and increased O&M expenses. City financial policies target a minimum of 6 months of operating expenses in operating reserves and an additional allowance of approximately $5.0 million in capital fund reserves.

Figure 5-3 presents the rate revenue requirements for the utility during the analysis period and projected revenues under existing and proposed rates. Rate revenue requirements consist of O&M expenses, administrative expenses, and debt service requirements. As Figure 5-3 illustrates, existing rate levels (green line) will not be sufficient to meet the projected revenue requirements and increases in rate revenues will be necessary to pay for projected costs.

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Figure 5-3. Revenue Requirements and Rate Revenues
Figure 5-4 presents the combined 6-month operating reserve and capital fund reserve from FY 2023/24 through FY 2028/29. The capital reserve fund is drawn down in FY 2023/24 to pay for budgeted capital improvements. The revenues generated by the system are sufficient to maintain the 6-month operating reserve balance.

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Figure 5-4. Ending Capital and Operating Reserve Balance Figure 5-5 presents the projected debt coverage for the wastewater utility. The analysis shows that, with the proposed rates, the utility is projected to exceed the debt coverage requirements on the current and new bonded debt of 125% in each year of the study period. The financial plan presented herein assumes new debt issues in FY 2025/26 and FY 2026/27 to help fund the wastewater treatment plant project.

Based on the proposed wastewater rate increases, Jacobs projects that the City will generate sufficient revenue to cover its projected expenses and to meet any bond coverage requirements for FY 2023/24 through FY 2028/29.

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Figure 5-5. Debt Service Coverage, Wastewater Utility
Appendix F provides projected sources and uses of funds for the utility for the analysis period.

5.9 Impact on Typical User Bills
Figure 5-6 shows the impact of the proposed FY 2024/25 to FY 2028/29 rates on the bills of typical residential users. Residential users that consume 6 CCF per month will see an increase in their monthly wastewater bills of approximately $40.00 over the 5-year study period.

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Figure 5-6. Typical Residential Wastewater Bill for 4,500 Gallons, Proposed Rates FY 2024/25 through FY 2028/29

5.10 Alternative Wastewater Rate Increase Scenario
Rate increases can be sculpted in several ways to achieve the goals of the utility. Instead of a large, one-time increase in Year 1 of the analysis, the increases could be phased in over a number of years to make the increases more levelized. Table 5-9 presents an alternative rate strategy that achieves the operating and capital reserve targets set by the utility. By the end of the analysis, the overall rate increase would be slightly higher when compared to the impacts of a one-time large increase in Year 1.

Table 5-9. Projected Annual Rate Increases, Scenario 1
FY Annual Water Increase
FY 2025 30.0%
FY 2026 30.0%
FY 2027 17.5%
FY 2028 3.0%
FY 2029 3.0%
Overall Increase[a] 110.7%
[a] Overall increase represents compounded increase over the analysis period.

Figure 5-7 presents the ending fund balance for the operating and capital fund under the alternative rate increase strategy. As mentioned previously, the alternative approach achieves the utility’s target fund balances for the operating and capital funds.

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Figure 5-7. Ending Capital and Operating Reserve Balance, Scenario 1 Water and Wastewater User Rate Study
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6. Rates Comparison Across Communities
Figure 6-1 shows how the combined monthly water and wastewater bills for the City compare with other neighboring communities. Data was collected from publicly available information and are the current rates as of March 2024. The chart reveals that the current combined bills of the City are less than the average monthly bill for the surveyed communities. When the proposed first year rate increases are included, the City’s combined bill is still lower than most surveyed communities.

Figure 6-1. Comparison of the City’s Water and Wastewater Bills with Other Communities for 6 CCF of Water Consumed
Note: rates for each community are from March 2024
A customer who uses the minimum amount of water included in the water and wastewater base charge would experience an increase of their combined utility bill from $59.90 per month to $93.00 per month.

The combined water and wastewater monthly bill based on 6 ccf of water consumption was estimated through FY 2026-27 for the City and neighboring communities. Data beyond FY 2026-27 for the other surveyed communities was not always available. Some of the rate adjustments are considered proposed as they are from recent rate studies and it is unclear if the rates were adopted by each community. Based on available information of proposed future rate increases for other neighboring communities, other communities are also planning for future water and wastewater rate increases. By FY 2026-27, the City’s rates are projected to be one of the lowest of the communities surveyed.

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Figure 6-2. Comparison of the City’s Water and Wastewater Bills with Other Communities for 6 CCF of Water Consumed, FY 2023-24 through FY 2026-27
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7. Conclusions and Recommendations
Jacobs recommends that the City adjust its water and wastewater rates in each year from FY 2024/25 through FY 2028/29 to help ensure that sufficient revenues will be generated to meet current operating and capital needs, debt service requirements and other financial commitments, and to cover operating and capital reserve targets.

With the proposed rate adjustments presented herein, the City’s water and wastewater rates should generate sufficient revenues, under the forecast assumptions, to meet the water and wastewater systems’ needs through FY 2028/29. The mentioned rates include the assumption that the City will issue new debt to fund the wastewater treatment plant upgrade and will receive a grant of $5.5 million. All other projected CIP will be funded through available capital reserves and rate revenues.

In addition, Jacobs recommends:
▪ Review the financial plan regularly to confirm actual revenues and expenditures are tracking with the projections developed in this analysis. The City should review the financial plan annually and adjust the rates as needed to reflect current conditions and assumptions. The projected rate increases presented herein are based on the best available data and assumptions developed by the utility and Jacobs as of March 2024.
▪ The City should consider conducting a water and wastewater rate study after completion of the water system plan.
▪ Update the CIP for the water and wastewater utility. This process would include developing a list of priority projects, updating cost estimates, and creating a schedule of implementation. ▪ Consider implementing an inflationary adjustment for service fees and other charges to keep up with the rising costs of labor and materials when they have not gone through a more detailed review. The annual inflationary adjustment would follow a national, statewide, or local price index such as the CPI for all items for the State of California.
▪ Actively pursue other sources of funds to pay for the planned capital expenditures. While the grant process is very competitive, Jacobs recommends the City apply for grants through various state and federal agencies, as well as grants offered by other organizations. The utility may be able to secure a grant or principal forgiveness loan if the service area meets eligibility criteria. ▪ After adoption of the rate study, the City should proceed with notifying impacted property owners of the proposed rate increases. The notification mailer will begin the minimum 45 day protest period and will set the date for the Proposition 218 hearing.
▪ The City should proceed with adopting the proposed rates after completion of the Proposition 218 hearing and balloting process. The City should adopt the proposed rates if the rate increase is not opposed by a majority of property owners through the Proposition 218 balloting process.

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8. References
American Water Works Association. 2016. M1 Principles of Water Rates, Fees, and Charges, Seventh Edition. ISBN: 9781625761910. December 15.

City of Arcata. Water and Wastewater Rates.
https://www.cityofarcata.org/DocumentCenter/View/13271/2023-2024-Service-Agreement-- InstructionsCity of Eureka, CA. 2023 Water and Wastewater Rate and Connection Fee Study, Draft. November 2022.

City of Frio Dell. Water and Wastewater Rates.
https://www.cityofriodell.ca.gov/sites/g/files/vyhlif8526/f/uploads/water_and_wastewater_rates_effecti ve_july_1_2023_updated_6.23.23.pdf
Humbolt Community Service District. Water and Wastewater Rates. https://humboldtcsd.org/sites/default/files/2023-24%20Master%20Charge%20Schedule-09-12-2023- .pdf
McKinleyville Community Service District. Water and Wastewater Rates. https://mckinleyvillecsd.ca.gov/files/8c86edaa6/Wastewater+rates+effective+January+2023.pdf State of California, Department of Industrial Relations. California Consumer Price Index (1955-2023).

Available at http://www.dir.ca.gov/OPRL.

State of California, Real Estate Service Division. DGS California Construction Cost Index CCCI (2011-2024). https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division-Resources-ListFolder/DGS-California-Construction-Cost-Index-CCCI.

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Appendix A. Water System Capital Improvement Plan
Project 2023 Cost
Year of
Construction
Budget FY
2023-24
Projected FY
2024-25
Projected FY
2025-26
Projected
FY 2026-27
Projected
FY 2027-28
Projected
FY 2028-29
Vancil Reservoir Site Rehabilitation Project $200,000 2024 $206,000 Corrosion Control Facility Piping & Well Replacement
Project
$300,000 2024 $309,000
Water Tank Recoating Project $600,000 2024 $618,000
Downtown Water Line Replacement Project-Design $160,000 2024 $164,800 Downtown Water Line Replacement ProjectConstruction$1,800,000 2025 $1,909,620 Drake Hill Road Water Main Replacement-Design $100,000 2025 $106,090 Drake Hill Road Water Main ReplacementConstruction$850,000 2026 $928,818 Lower Barney Drainage and Culvert Repair $100,000 2024 $103,000 Corrosion Control Facility Electrical Project $200,000 2026 $218,545 Kenmar & Drake Hill Pump Station Stationary GenSets $50,000 2024 $51,500 Water System Master Plan $150,000 2024 $154,500
Meadow Lane Main Replacement with C900 $220,000 2026 $240,400 12th St Water Main Project-Design $80,000 2026 $87,418
12th St Water Main Project-Construction $800,000 2027 $900,407 Carson Woods Road Water Line Replacement-Design $80,000 2027 $90,041 Carson Woods Road Water Line ReplacementConstruction$750,000 2028 $869,456 Kenmar & Drake Hill Pump Station Stationary GenSets $150,000 2024 $154,500 Waterline Replacement $1,000,000 2029 $1,194,052
Replace loader (share with wastewater) $125,000 2027 $140,689 Replace vaccon (share with wastewater) $275,000 2029 $328,364 Replace service truck (share with wastewater) $40,000 Annual $41,200 $42,436 $43,709 $45,020 $46,371 $47,762 Total $1,802,500 $2,058,146 $1,518,891 $1,176,157 $915,827 $1,570,179 Water and Wastewater User Rate Study
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Appendix B. Projected Water Rates
Base Monthly Service Charge
Current
Rate
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Inside City - Meter Size
5/8" by 3/4" $23.04 $36.86 $38.71 $40.64 $41.86 $43.12
1" $44.07 $70.51 $74.04 $77.74 $80.07 $82.47
1 1/2" $87.21 $139.54 $146.51 $153.84 $158.45 $163.21
2" $147.61 $236.18 $247.98 $260.38 $268.20 $276.24
3" $320.16 $512.26 $537.87 $564.76 $581.71 $599.16
4" $561.73 $898.77 $943.71 $990.89 $1,020.62 $1,051.24
6" $1,251.95 $2,003.12 $2,103.28 $2,208.44 $2,274.69 $2,342.93 Volume charge over 300 cf
($/ccf) $1.90 $3.04 $3.19 $3.35 $3.45 $3.56
Volume charge for consumption exceeding 300 ft3in the winter; in summer months (May to October), consumption charge applied for usage exceeding 500 ft3.

Outside City Limits (1.5 times Inside City Rate)
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Appendix C. Projected Sources and Uses of Funds, Water
Budget Projected Projected Projected Projected Projected Item FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Sources of Funds
Beginning Balance $2,500,000 $1,039,667 $1,101,918 $1,154,233 $1,208,892 $1,267,018 Water Service Charges $2,340,000 $3,642,912 $3,922,355 $4,118,473 $4,245,853 $4,373,229 Other Charges $58,000 $58,000 $58,000 $58,000 $58,000 $58,000 Interest Revenue $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 Total Sources of Funds $4,918,000 $4,760,579 $5,102,273 $5,350,706 $5,532,745 $5,718,247 Uses of Funds
Transmission & Distribution $704,482 $726,010 $761,291 $798,472 $838,148 $880,529 Pumping, Treatment & Storage $720,987 $752,432 $789,191 $826,660 $866,346 $908,409 Administration $682,744 $756,002 $790,045 $826,232 $864,738 $905,756 Existing Debt Service $395,900 $399,275 $397,025 $399,150 $395,650 $396,525 New Debt Service $0 $0 $0 $0 $0 $0
Capital Contribution $706,321 $1,024,942 $1,210,486 $1,291,299 $1,300,845 $1,298,138 Bond Issuance $0 $0 $0 $0 $0 $0
Debt Service Other Fee
Ending Fund Balance $0 $0 $0 $0 $0 $0
Operating contingency $1,039,667 $1,101,918 $1,154,233 $1,208,892 $1,267,018 $1,328,890 New Debt Service Reserve $0 $0 $0 $0 $0 $0
Total Uses of Funds $4,918,000 $4,760,579 $5,102,273 $5,350,706 $5,532,745 $5,718,247 Capital Improvement Fund
Beginning Balance $4,500,000 $4,221,720 $3,188,516 $2,880,112 $2,995,254 $3,380,273 Debt Proceeds $0 $0 $0 $0 $0 $0
Grant Funding $150,000 $0
Transfer from Water Operating Fund $1,374,220 $1,024,942 $1,210,486 $1,291,299 $1,300,845 $1,298,138 Subtotal $6,024,220 $5,246,662 $4,399,002 $4,171,411 $4,296,099 $4,678,411 CIP $1,802,500 $2,058,146 $1,518,891 $1,176,157 $915,827 $1,570,179 Transfer to Bond Reserve Fund $0 $0 $0 $0 $0 $0
Subtotal $1,802,500 $2,058,146 $2,058,146 $1,518,891 $1,176,157 $915,827 Ending Balance $4,221,720 $3,188,516 $2,880,112 $2,995,254 $3,380,273 $3,108,232 Water and Wastewater User Rate Study
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Appendix D. Wastewater System Capital Improvement Plan
Budget Projected Projected Projected Projected Projected Project 2023 Cost
Year of
Construction FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 NPDES Compliance Project $2,000,000 2024 $2,100,000
NPDES Compliance Project - Construction $16,600,000 2026 $18,672,742 NPDES Compliance Project - Construction $16,600,000 2027 $19,419,652 Wastewater System Model & Master Plan $165,000 2024 $173,250 Wastewater Lining Project - Design $100,000 2024 $105,000 Wastewater Lining Project - Construction $1,500,000 2025 $1,653,750 Wastewater Lining Project - Design $100,000 2025 $110,250 Wastewater Lining Project - Construction $1,500,000 2026 $1,687,296 East Downtown Wastewater Replacement
Project (consider combine w/ downtown
wtr) $550,000 2026
$618,675
Treatment Plant PLC, VPN, and Hardware
Upgrades - Design $50,000 2027
$58,493
Treatment Plant PLC, VPN, and Hardware
Upgrades -Construction $350,000 2028
$425,829
P Street Wastewater Replacement Project $150,000 2024 $157,500 Sanitary Wastewater Collections System
CCTV $600,000 2024
$630,000
Wastewater Grant Fund Projects: Hilltop
Wastewater Main Project - Design $50,000 2027
$58,493
Wastewater Grant Fund Projects: Hilltop
Wastewater Main Project -Construction $450,000 2028
$547,494
Wastewater Lining Project $1,000,000 2029 $1,265,319
Replace loader (share with water) $125,000 2027 $146,232 Replace vaccon (share with water) $275,000 2029 $347,963 Replace service truck (share with water) $40,000 Annual $42,000 $44,100 $44,995 $46,794 $48,666 $50,613 Total $42,205,000 $3,207,750 $1,808,100 $21,023,708 $19,729,665 $1,021,988 $1,663,895 Water and Wastewater User Rate Study
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Appendix E. Projected Wastewater Rates
Monthly Base Charge Current Rate FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 Residential (includes first 500 cf) $38.75 $54.25 $67.81 $74.59 $76.83 $79.14 Light Commercial (includes first 500 cf;
strength factor <200 mg/l) $38.02 $53.23 $66.54 $73.19 $75.38 $77.65 Medium Commercial (includes first 500 cf;
strength factor bewteen 200-500 mg/l) $49.02 $68.63 $85.79 $94.36 $97.19 $100.11 Heavy Commercial (includes first 500 cf;
strength factor >500 mg/l) $96.69 $135.37 $169.21 $186.13 $191.71 $197.46 Industrial (includes first 2590 cf) $767.56 $1,074.58 $1,343.23 $1,477.55 $1,521.88 $1,567.54 Palmer Creek CSD (includes first 2590 cf) $168.02 $235.23 $294.04 $323.44 $333.14 $343.14 Volume Rate
Residential (includes first 500 cf) $8.61 $12.05 $15.07 $16.57 $17.07 $17.58 Light Commercial (includes first 500 cf;
strength factor <200 mg/l) $8.45 $11.83 $14.79 $16.27 $16.75 $17.26 Medium Commercial (includes first 500 cf;
strength factor bewteen 200-500 mg/l) $10.89 $15.25 $19.06 $20.96 $21.59 $22.24 Heavy Commercial (includes first 500 cf;
strength factor >500 mg/l) $21.49 $30.09 $37.61 $41.37 $42.61 $43.89 Industrial (includes first 2590 cf) $29.64 $41.50 $51.87 $57.06 $58.77 $60.53 Palmer Creek CSD (includes first 2590 cf) $6.49 $9.09 $11.36 $12.49 $12.87 $13.25 Special Agreements
Residential, Commercial, and Industrial
BOD ($/lb) $1.36 $1.90 $2.38 $2.62 $2.70 $2.78
TSS/ ($/lb) $1.25 $1.75 $2.19 $2.41 $2.48 $2.55
Volume ($/ccf) $5.19 $7.27 $9.08 $9.99 $10.29 $10.60
Palmer Creek CSD
BOD ($/lb) $1.23 $1.72 $2.15 $2.37 $2.44 $2.51
TSS/ ($/lb) $1.13 $1.58 $1.98 $2.18 $2.24 $2.31
Volume ($/ccf) $3.91 $5.47 $6.84 $7.53 $7.75 $7.99
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Appendix F. Projected Sources and Uses of Funds, Wastewater Budget Projected Projected Projected Projected Projected Item FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Sources of Funds
Beginning Balance $4,000,000 $3,800,440 $1,556,951 $1,632,174 $1,712,153 $1,797,262 Service Charges $3,450,000 $4,743,060 $5,969,578 $6,611,364 $6,831,253 $7,036,190 Other Revenue $26,000 $26,000 $26,000 $26,000 $26,000 $26,000 Interest Revenue $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Grant Revenue $0 $0 $2,750,000 $2,750,000 $0 $0
Total Sources of Funds $7,501,000 $8,594,500 $10,327,529 $11,044,538 $8,594,406 $8,884,452 Uses of Funds
Collection $495,043 $505,822 $530,448 $556,875 $585,263 $615,787 Treatment $1,779,625 $1,845,123 $1,935,206 $2,030,776 $2,132,242 $2,240,049 Administration $730,798 $806,205 $844,032 $884,216 $926,944 $972,418 Existing Debt Service $695,094 $688,094 $688,844 $688,594 $692,219 $689,719 New Debt Service $0 $0 $322,000 $966,000 $1,288,000 $1,288,000 Capital Contribution $0 $3,192,306 $4,374,825 $4,205,925 $1,172,478 $1,190,574 Ending Fund Balance $2,318,293 $0 $0 $0 $0 $0
Operating contingency $1,482,148 $1,556,951 $1,632,174 $1,712,153 $1,797,262 $1,887,906 Debt Service Reserve $0 $0 $0 $0 $0 $0
Total Uses of Funds $7,501,000 $8,594,500 $10,327,529 $11,044,538 $8,594,406 $8,884,452 Capital Improvement Fund
Beginning Balance $9,000,000 $5,792,250 $7,176,456 $5,527,573 $5,003,832 $5,154,322 Debt Proceeds $0 $0 $15,000,000 $15,000,000 $0 $0
Transfer from Wastewater Fund $0 $3,192,306 $4,374,825 $4,205,925 $1,172,478 $1,190,574 Subtotal $9,000,000 $8,984,556 $26,551,281 $24,733,497 $6,176,310 $6,344,895 CIP $3,207,750 $1,808,100 $21,023,708 $19,729,665 $1,021,988 $1,663,895 Bond Issuance Cost $0 $0 $0 $0 $0 $0
Transfer to Bond Reserve Fund $0 $0 $0 $0 $0 $0
Subtotal $3,207,750 $1,808,100 $21,023,708 $19,729,665 $1,021,988 $1,663,895 Ending Balance $5,792,250 $7,176,456 $5,527,573 $5,003,832 $5,154,322 $4,681,001 Memorandum
[Legal entity] 1
City of Fortuna Water and Wastewater Connection Fee Update, Draft Date: March 31, 2024 Jacobs Engineering Group
2525 Airpark Dr.

Redding, CA 96001
United States
T +1.530.243.5831
Attention: Brendan Byrd/City of Fortuna, Public Works Director Aaron/City of Fortuna, Finance Director
Prepared by: Kurt Playstead/Jacobs
Copies to: Ted Couch/Jacobs
Dave Green/Jacobs
Introduction
The City of Fortuna (the City) charges a capital connection fee for any new connection to the Fortuna Water and Wastewater Systems. The water connection fees collected are deposited into the Water System Capital Improvement Fund. The fees are charged on a per unit basis. A similar charge is collected for the Wastewater system and the revenue collected is deposited into the Wastewater Capital Reserve fund.

Connection fees are used to fund new capital projects that are necessary to serve new growth or to reimburse the utility for existing facilities that have capacity available to serve new customers.

The most recent change to the City’s water and wastewater connection fees occurred in 2012. From 2012 to 2024, the California Construction Cost Index (CCI) has increased approximately 70 percent. The proposed adjustments to the water and wastewater connection fees use the existing connection fee structure for water and wastewater and apply an inflationary adjustment to update the costs. For this analysis, the CCI adjustment of 70 percent was applied as the connection fee revenues are used to fund capital projects.

Water Connection Fee
Water connection fees are based off a Living Unit Equivalent (LUE). The LUE in turn is based on the size of the new connections water meter. The water connection fees are higher for larger meter sizes to account for the potential demand placed on the water system by the larger meter. For example, Fortuna’s current connection fee LUE for a 6” meter is equal to approximately 92 LUEs. The City’s current water connection fees are presented in Table 1.

Table 1. Current Water Connection Fees
Meter Size Equivalent Connection Fee
5/8" by 3/4" 1 LUE $2,165.00
1" 2.56 LUE $5,542.00
1 1/2" 5.76 LUE $12,470.00
2" 10.24 LUE $22,169.60
3" 23.04 LUE $49,881.60
4" 40.96 LUE $88,678.40
6" 92.16 LUE $199,526.40
Memorandum
[Legal entity] 2
A review of the meter equivalencies based on meter capacity published in the American Water Works Association (AWWA) M-1 Rate Manual (Principles of Water Rates, Fees and Charges, 7th edition) suggests that the City should update the LUE equivalencies to align with the guidance from the AWWA M-1 manual.

The suggested AWWA meter equivalencies are presented in Table 2. It is recommended the City adopt the revised LUE schedule in Table 2.

Table 2. AWWA Meter Equivalencies
Meter Size Meter Equivalent
5/8" by 3/4" 1 LUE
1" 2.50 LUE
1 1/2" 5.0 LUE
2" 8.0 LUE
3" 16.0 LUE
4" 25.0 LUE
6" 50.0 LUE
The proposed water connection fee revises the meter equivalencies and applies an inflationary adjustment to the current fee to account for increased costs since 2012. The proposed connection fee applied a factor of 1.70 to represent the change in the CCI from 2012 to 2024. Per the State of California Real Estate Services Division, the CCI in January 2024 was 9680 and the CCI in January 2012 was 5683. The adjustment factor from 2012 to 2024 is 9680/5683 = 1.70.

The existing connection fee for a typical residential 5/8” by ¾” meter size would increase from $2,165 to approximately $3,688. The connection fees for the other meter sizes would reflect this same escalation factor, and any adjustment to the LUE equivalencies. Table 3 presents the proposed changes to the water connection fees.

Table 3. Proposed Water Connection Fee
Current Meter Current Proposed Meter Proposed
Meter Size Equivalent Connection Fee Equivalent Connection Fee 5/8" by 3/4" 1 LUE $2,165 1.0 LUE $3,688
1" 2.56 LUE $5,542 2.5 LUE $9,219
1 1/2" 5.76 LUE $12,470 5.0 LUE $18,438
2" 10.24 LUE $22,170 8.0 LUE $29,501
3" 23.04 LUE $49,882 16.0 LUE $59,002
4" 40.96 LUE $88,678 25.0 LUE $92,191
6" 92.16 LUE $199,526 50.0 LUE $184,382
LUE = Living Unit Equivalent
For connections located outside the city limits, the connection fee rate is1.5 times the inside rate. Any new connection south of Drake Hill Road and serviced by Drake Hill Road Pump Station currently pays an Memorandum
[Legal entity] 3
additional $2,484 for each unit of service. Applying the same adjustment factor, the Drake Hill Road connection fee would be $3,447 per LUE.

Wastewater Connection Fee
Wastewater connection fees are based on LUE for a single family home with one bathroom, kitchen, dishwasher and washing machine, having a total of 14 fixture units. The current wastewater connection fee for one LUE is $4,445. Connection fees for larger homes, commercial and industrial customers will be determined by dividing the total number of fixture units in the new building, by 14 and multiplying by the base fee for a LUE. For example, if a new commercial customer had a total fixture unit count of 28, their connection fee would be 28/14 * $4,445/LUE = $8,890. The unit equivalent of plumbing fixtures shall be based on the size of the trap required or the rated discharge capacity of the fixture in gallons per minute.

The proposed wastewater connection fee applies an inflationary adjustment to the current fee to account for increased costs since 2012. The proposed connection fee applied a factor of 1.70 to represent the growth in inflation in the CCI from 2012 to 2024. The existing connection fee for a single LUE would increase from $4,445 to approximately $7,571 per LUE. Table 4 presents the proposed changes to the sewer connection fees.

Table 4. Wastewater Connection Fee
Wastewater Service LUE Base
Charge
Current
Connection
Fee
Proposed
Connection
Fee
up to 14 fixture units $4,445 $7,571
per additional fixture unit $318 $541
For connections located outside the city limits, the connection fee rate is1.5 times the inside rate.

Connection Fee Comparison
Table 5 presents the water connection fees for other nearby communities. Each community uses a similar approach to Fortuna and charges based on equivalent meters. Fortuna’s current and proposed connection fees are lower than the other communities surveyed.

Table 5. Water Connection Fee Comparison
Meter Size
Fortuna,
Current
Fortuna,
Proposed Eureka Humboldt
5/8" $2,165 $3,688 $5,497 $5,597
1" $5,542 $9,219 $13,744 $13,993
1 1/2" $12,470 $18,438 $27,487 $27,985
2" $22,170 $29,501 $43,979 $44,776
3" $49,882 $59,002 $87,959 $89,552
4" $88,678 $92,191 $137,436 $139,925
Memorandum
[Legal entity] 4
6" $199,526 $184,382 $274,872 $279,850
Table 6 presents the wastewater connection fees for other nearby communities. Each community uses a similar approach to Fortuna and charges based on equivalent residential units (ERU) or similar. Each community defines an ERU differently as noted in Table 6. The ERU is the basis for charging multi-family and commercial connections.

Table 6. Wastewater Connection Fee Comparison
Community
Connection
Fee Notes
Fortuna, Current $4,445 per EDU; one EDU = 14 fixture units Fortuna, Proposed $7,571 per EDU; one EDU = 14 fixture units Eureka $7,123 Per Housing Equivalent Unit (HEU; HEU = sewer flows of single family residential home
Humboldt $9,974 per EDU; one EDU = 24 fixture units
Recommendations
It is recommended that the City adjust the water meter equivalents to be consistent with guidance from the AWWA M-1 Rate Manual. It is also suggested that the City revise its connection fees on a more regular basis. A comprehensive update of their connection fees for water and wastewater should be coordinated with the completion of the upcoming Water System Master Plan. The Water System Master Plan will identify areas of growth within the city, estimate necessary capital improvements required to meet current and future customer demands, and provide the City with updated planning information that can be used in the connection fee update. The City can also utilize information from their wastewater treatment plant evaluations and the recent study on the collection system to update the wastewater connection fee.

Discussion Item 2c

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STAFF REPORT
City Council Discussion Item
DATE: April 15, 2024
TO: Honorable Mayor and City Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Review and Provide Direction to Staff regarding proposed Ordinance Increasing Transaction and Use Tax to 1.5 percent and proposed Resolution Submitting the Ordinance to the Voters
STAFF RECOMMENDATION:

Consider and provide direction to staff regarding a proposed ordinance to increase the current 0.75% Transaction and Use Tax by up to and including three-quarters of one percent (0.75%), which would increase the current tax from three-quarter percent (0.75%) to one and one-half percent (1.5%), and consider and provide direction to staff regarding a proposed resolution submitting the ordinance to the voter.

EXECUTIVE SUMMARY:

In November 2016, a majority of voters approved a local 0.75 percent transactions and use tax (Measure E) with the intention of funding previous cuts to public safety and to help maintain and enhance public safety services, support local businesses, provide essential services, and stabilize the City budget. The tax was originally set to expire on March 31, 2025; however, in November 2020, a majority of voters approved an extension of the tax through March 31, 2033.

Measure E revenues are essential for the City to maintain and continue to improve certain essential City services and to maintain a balanced budget. However, as discussed in more detail below, the City has experienced a significant increase in the cost of providing essential services since 2016 and additional funds are necessary to meet current and projected costs.

Over the long term, costs to provide services that depend on the general fund including police, general services, and parks and recreation will continue to increase and ultimately require nearly all of the funding generated by Measure E. In Fiscal Year 2022-2023, the amount of funding in excess of that needed by the departments normal operation that could be used for special projects was at a high of $785,000. With the escalation of costs for items such as health care, fuel, wages, equipment and materials increasing over 9% in one year, the amount available for special projects has diminished to $375,000, a decrease of over $400,000 in just two years. Additionally, the City’s compensation of employees generally runs lower than other Humboldt County Cities and the County and this makes it difficult for the City to recruit and retain quality employees. For example, Eureka and Arcata offer a $50,000 hiring bonus for lateral transfers for police and offer higher paying salaries (in excess of 10%). Those cities continue to increase its salaries above what the City of Fortuna can offer. Eureka has a 1.5% transaction and use tax compared to the City of Fortuna’s 0.75% and a higher proportion of retail sales that puts Fortuna at a disadvantage.

Discussion Item 2c

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At a study session held on April 1, 2024, the City Council expressed its desire to amend Chapter 3.13 of the Fortuna Municipal Code to increase the current rate of the tax from 0.75% to 1.5%. The Council further directed staff to bring back a proposed ordinance implementing the above-referenced option for initial review and discussion, with possible final adoption on May 6, 2024.

Accordingly, included with this Staff Report are two attachments:
 Attachment A is a draft resolution that, among other things:
o Submits an ordinance (Attachment B) to the qualified voters at the November 5, 2024, general municipal election;
o Requests the election on the ordinance be consolidated with the Statewide General Election;
o Sets dates for submission of arguments for and against the proposed tax measure;
o Sets dates for submission of rebuttal arguments;
o Authorizes the Mayor to submit a written argument in favor of the measure on behalf of the Council;
o Requests the City Attorney prepare an impartial analysis of the measure; and o Agrees to reimburse the County for the costs of conducting the election on the measure.
 Attachment B is a draft ordinance that, among other things:
o Authorizes an increase of the existing transaction and use tax from 0.75% up to and including 1.5%;
o Maintains all other provisions of the existing transaction and use tax, including maintaining the March 31, 2033, expiration date; maintaining the independent audit requirement; maintaining the oversight committee; and maintaining the rights of the voters or future City Councils to repeal the measure.

Increasing the City’s transaction and use tax will allow the City to continue to have more competitive salaries and fund special programs beyond normal operation. Should the city choose, they could also identify other public safety priorities for funding such as fire protection services. Not pursuing additional tax revenue will make it harder for the City to recruit and retain employees and limit the ability to do special projects. It is important to note, that while the sales tax would be administered by the California Department Of Tax And Fee Administration (“CDTFA”), the revenues are earmarked exclusively for use by and within the City – the State would not be able to take or borrow these funds.

If the increase is approved by voters, a 1.5% local sales tax would provide approximately $3,690,000 for essential City services.

FISCAL IMPACT:

Without an increase of 0.75-cents to the existing 0.75-cent transaction and use tax, over time, the City would return continue to lose the ability to fund all but the necessary projects and would struggle to retain staff by paying competitive salaries. If the tax is not increased in 2024 then the City would look to work toward balancing future budgets by reducing services and staffing. In addition, the following essential services would be at risk for elimination or reduction:

Discussion Item 2c

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 Capital Improvement Projects (CIP) that are scheduled for the repair and/or replacement of deteriorated City infrastructure will continue to be postponed and/or cancelled  Funding and Staff time in support of local events such as the Fortuna Rodeo and AutoXpo will be reduced or eliminated
 Fewer maintenance projects for city streets
 Fewer repair projects for city drainage facilities
 Fewer expansion or improvement of city parks
RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff;

2. Receive public comment; and

3. Review the Resolution and Ordinance, providing direction to staff as appropriate.

Attachment
A. Resolution 2024-10; A Resolution of the City Council of the City of Fortuna Ordering the Submission to the Qualified Electors of the City of Fortuna a Certain Measure Relating to a Proposed Ordinance Amending Chapter 3.13 to Title 3 of the Fortuna Municipal Code Increasing the City’s Transactions and Use Tax by Three Quarters of One Percent for General Purposes at the General Municipal Election to be Held on Tuesday, November 5, 2024 as Called and Proposed to the Qualified Electors by Resolution No. 2024-10; Directing the City Attorney to Prepare an Impartial Analysis of the Measure; Setting the Dates for Arguments on the Measure and Requesting the Board of Supervisors of the County of Humboldt to Consolidate Said Election Pursuant to Section 10403 of the Elections Code B. Ordinance 2024-769, An Ordinance of the City of Fortuna to Increase the Existing City of Fortuna Transactions and Use Tax to be Administered by The California Department of Tax and Fee Administration, Subject to Approval of a Majority of the Electors Voting on the Tax Measure at the General Municipal Election to be Held on Tuesday, November 5, 2024

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RESOLUTION NO. 2024-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA ORDERING

THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF FORTUNA A

CERTAIN MEASURE RELATING TO A PROPOSED ORDINANCE AMENDING CHAPTER 3.13 TO TITLE 3 OF THE FORTUNA MUNICIPAL CODE INCREASING THE CITY’S TRANSACTIONS AND USE TAX BY THREE QUARTERS OF ONE

PERCENT FOR GENERAL PURPOSES AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, AS CALLED AND PROPOSED TO THE QUALIFIED ELECTORS BY RESOLUTION NO. 2024-10; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE;

SETTING THE DATES FOR ARGUMENTS ON THE MEASURE AND REQUESTING

THE BOARD OF SUPERVISORS OF THE COUNTY OF HUMBOLDT TO
CONSOLIDATE SAID ELECTION PURSUANT TO SECTION 10403 OF THE

ELECTIONS CODE
WHEREAS, at the General Municipal Election on Tuesday, November 8, 2016, the qualified voters of the City of Fortuna approved Measure E, which imposed a three-quarters cent transaction and use tax (“sales tax”) to protect and maintain essential City services, including increasing and restoring police officers and programs, repairing aging/deteriorating streets and potholes, parks maintenance, and programs for youth and seniors; and WHEREAS, at the General Municipal Election on Tuesday, November 3, 2020, the qualified voters of the City of Fortuna approved Measure G, which extended the sales tax through March 31, 2033; and
WHEREAS, the revenues derived from Measure E are essential to maintain and continue to improve city services, including police protection, code enforcement and other essential services; however, due to rising costs and inflationary pressures, the revenues derived from Measure E are insufficient to continue to maintain the programs and services funded by Measure E; and WHEREAS, the City desires to amend Chapter 3.13 of the Fortuna Municipal Code to increase the current rate of the sales tax by up to and including three-quarters of one percent (0.75%), to ensure a reliable, sufficient, locally-controlled source of funds to address, plan, and prepare for community priorities including increasing police protection services; maintaining 9-1-1 response; nuisance abatement; repairing and maintaining streets, sidewalks, and drainage; maintaining parks; maintaining programs for youth and seniors; and maintaining other essential services; and WHEREAS, the City Council desires to submit to the voters at the election a question relating the proposed increase of the of the current three-quarter percent transactions and use tax to one and one-half percent transactions and use tax for general purposes; and

Page 2 of 5 ends

WHEREAS, a General Municipal Election on Tuesday, November 5, 2024, has been called by Resolution No. 2024-10, adopted on ________, 2024; and
WHEREAS, the City Council of the City of Fortuna desires that the County of Humboldt Elections Department conduct the municipal election, pursuant to Elections Code Section 10403, to be held on November 5, 2024; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FORTUNA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election of November 5, 2024, the following question:

Extension of Current Essential Services Funding Measure Shall the measure to increase the transaction and use tax to one-and one-half percent to provide approximately $1,800,000 annually in additional revenues through March 31, 2033, to improve essential services, including police services; nuisance abatement; streets, sidewalks, and drainage; parks maintenance; and programs for youth and seniors; and requiring a community oversight committee, with all funds remaining in Fortuna, be adopted?
Yes
No
SECTION 2. The proposed measure submitted to the voters is attached as Exhibit A. The City Council hereby approves the ordinance by a two-thirds vote of the City Council, the form thereof, and its submission to the voters of the City at the November 5, 2024 General Municipal Election, as required by Revenue and Taxation Code section 7285.9. The ordinance specifies that the rate of the transactions tax shall be increased to one-and-onehalf percent per dollar of the sales price of certain personal property; it specifies that the rate of the use tax shall be increased to one-and-one-half percent per dollar of the sales price of tangible personal property stored, used or otherwise consumed in the City. The California Department of Tax and Fee Administration shall collect the tax from retailers subject to the tax and remit the funds to the City.

SECTION 3. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections, including but not limited to Elections Code section 10418.

SECTION 4. Pursuant to the requirements of Section 10403 of the Elections Code, the City Council of the City of Fortuna hereby requests the Board of Supervisors of the County of Humboldt to agree to the consolidation of the Municipal Election with the Statewide General Election on November 5, 2024 and issue instructions to the Humboldt County Elections Department that the election in all respects be held as if there were only one election and to conduct the Municipal Election including the publishing of all election

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materials, the mailing of sample ballots, the hiring of election officers, canvassing the returns, and the actual conduct of the election.

SECTION 5.
a. The last day for submission of primary arguments for or against the measure shall be by 5:00 p.m. on August 14, 2024.
b. The last day for submission of rebuttal arguments for or against the measure shall be by 5:00 p.m. on August 21, 2024.
c. Primary arguments shall not exceed three hundred (300) words and shall be signed by not more than five persons.
d. Rebuttal arguments shall not exceed two hundred fifty (250) words and shall be signed by not more than five persons; those persons may be different persons than the persons who signed the primary arguments.
e. Pursuant to California Elections Code Section 9282, Mayor Tami Trent is hereby authorized to file a written argument in favor of the proposed measure on behalf of the City Council. At Mayor Trent’s discretion, the argument may be signed by members of the City Council or bona fide associations or by individual voters who are eligible to vote on the measure. In the event that an argument is filed against the measure, Mayor Long is also authorized to file a rebuttal argument on behalf of the City Council, which may be signed by members of the City Council or bona fide associations or by individual voters who are eligible to vote on the measure, which may be different from those who signed the primary argument.
f. Pursuant to California Elections Code Section 9285, when the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument, which it seeks to rebut.
g. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a certified copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and file the impartial analysis with the City Clerk by August ___, 2024.

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SECTION 6. The City of Fortuna recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County of Humboldt for all costs associated with the conduct of the City of Fortuna’s municipal election to be held on November 5, 2024.

SECTION 7. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

SECTION 9. The approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the city would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required.

NOW, THEREFORE, BE IT FURTHER RESOLVED the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Humboldt County Registrar of Voters.

PASSED AND ADOPTED this __th day of May, 2024, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
______________________________
Tami Trent, Mayor
ATTEST:
________________________________
Siana Emmons, City Clerk

Page 5 of 5 ends

APPROVED AS TO FORM:
_____________________________
Ryan T. Plotz, City Attorney
DRAFT

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ORDINANCE 2024-769

AN ORDINANCE OF THE CITY OF FORTUNA

TO INCREASE THE EXISTING CITY OF FORTUNA TRANSACTIONS AND USE TAX

TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE

ADMINISTRATION, SUBJECT TO APPROVAL OF A MAJORITY OF THE

ELECTORS VOTING ON THE TAX MEASURE AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024
WHEREAS, pursuant to California Revenue and Taxation Code § 7285.9, the City of Fortuna ("City") has the authority to levy a local transactions and use tax for general purposes ("TUT'); and
WHEREAS, at the General Municipal Election on Tuesday, November 8, 2016, the qualified voters of the City of Fortuna approved Measure E, which imposed a three-quarters cent TUT for an eight (8) year period through and including March 31, 2025, to ensure a reliable, locallycontrolled source of funds to address, plan, and prepare for community priorities including increasing police protection services; maintaining 9-1-1 response; nuisance abatement; repairing and maintaining streets, sidewalks, and drainage; maintaining parks; maintaining programs for youth and seniors; and maintaining other essential services; and WHEREAS, at the General Municipal Election on Tuesday, November 3, 2020, the qualified voters of the City of Fortuna approved Measure G, which extended the sales tax through March 31, 2033; and
WHEREAS, the revenues derived from Measure E are essential to maintain and continue to improve essential city services; however, due to rising costs and inflationary pressures, the revenues derived from Measure E are insufficient to continue to maintain the programs and services funded by Measure E; and
WHEREAS, the City Council desires to propose to the qualified voters of the City of Fortuna an ordinance to increase the TUT with all revenues continuing to be subject to an independent audit and overseen by a community oversight committee.

NOW, THEREFORE, the People of the City of Fortuna do ordain as follows:

SECTION 1. APPROVAL OF TAX INCREASE. The qualified votes of the City of Fortuna hereby approve and adopt an ordinance increasing the currently imposed transaction and use tax rate, as codified in Chapter 3.13 of Title 3 of the Fortuna Municipal Code, from three quarters of one percent per dollar to a rate not to exceed one-and one-half percent per dollar, effective April 1, 2025, through March 31, 2033, unless sooner repealed by the voters or rescinded by four-fifths vote of the City Council.

DRAFT

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SECTION 2. AMENDMENT TO THE MUNICIPAL CODE. Section 3.13.050 of Chapter 3.13 of Title 3 of the Fortuna Municipal Code is hereby deleted and replaced in its entirety as follows:

3.13.050 Transactions tax rate.

A. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of

0.75 percent per dollar of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.

B. Effective April 1, 2025, and continuing thereafter through March 31, 2033, unless sooner repealed by the voters or rescinded by the City Council, the rate of .75 percent per dollar of the gross receipts set forth above in subdivision A of this Section 3.13.050 shall be increased to a rate of 1.5 percent per dollar of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory or a lesser rate (in one-eight increments) as approved by resolution of the City Council. The increased transaction tax rate of 1.5 percent shall be authorized and effective through March 31, 2033, unless sooner terminated in accordance with this Chapter.

SECTION 3. AMENDMENT TO THE MUNICIPAL CODE. Section 3.13.070 of Chapter 3.13 of Title 3 of the Fortuna Municipal Code is hereby deleted and replaced in its entirety as follows:

3.13.070 Use tax rate.

A. An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of 0.75 percent per dollar of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

B. Effective April 1, 2025, and continuing thereafter through March 31, 2033, unless sooner repealed by the voters or rescinded by the City Council, the rate of 0.75 percent per dollar of the sales price set forth in subdivision A of this Section

3.13.070 shall be increased to 1.5 percent per dollar of the sales price of the property or a lesser rate (in one-eight increments) as approved by resolution of the City Council. The increased use tax rate of 1.5 percent shall be authorized and effective through March 31, 2033, unless sooner terminated in accordance with this Chapter.

SECTION 4. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect only if approved by a majority of DRAFT

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the voters voting on the measure at the November 5, 2024 General Municipal Election and shall become effective ten (10) days after the City Council declares and certifies by resolution the results of the election and that the measure was approved by a majority of the voters voting thereon.

SECTION 6. CERTIFICATION AND PUBLICATION. Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this ordinance and shall cause it to be published according to law and transmitted to the Board of Equalization.

SECTION 7. COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. The approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal.

Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The transactions and use tax enacted by this Ordinance is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the city would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required.

PASSED AND ADOPTED by the City Council of the City of Fortuna on the __ day of May, 2024, by at least a two-thirds vote of the City Council, as follows:

AYES:

NAYS:

ABSENT:

ABSTAIN:
________________________________
Tami Trent, Mayor
ATTEST:
________________________
Siana Emmons, City Clerk
Approved As To Form:
_____________________________________
Ryan T. Plotz, City Attorney
Zoom Option: 1-669-900-9128 User ID: 857 6758 0328 Password: 011178 We May Disagree, But We Will Be Respectful of One Another All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council Personal Attacks are Unacceptable
The City Council May Take Action on any Item on this Agenda.

1. CALL TO ORDER / FLAG SALUTE / ROLL CALL
Minutes:

Mayor Trent called the public meeting to order at 5:00 p.m. and led the flag salute. ROLL CALL:

Council Member Conley - Present, Council Member Losey - Present, Council Member Mobley - Present, Mayor Pro Tem Johnson - Present, Mayor Trent - Present

2. ORAL COMMENTS FROM THE PUBLIC
Minutes:

There being no public comments, Mayor Trent closed the Oral Comment section.

3. DISCUSSION ITEM
a. Transactions and Use Tax Measure
Minutes:

City Manager Merritt Perry provided a staff report for the Council to consider transactions and use tax measures. Finance Director Aaron Felmlee provided a budget overview in regards to a tax measure. PUBLIC COMMENTS:

Sue Long - Expressed concern regarding a tax measure and understood the City's need for the measure, however, she expressed concern about inflation and questioned who on the Council would put in the work to campaign for a successful measure. She expressed doubt that the measure would pass at this election.

Michelle Bushnell -Humboldt County 2nd District Supervisor -Requested the Council to consider that the County would be placing a road tax on the same November ballot.

There being no additional public comments, Mayor Trent closed the public comment sections.

Special Meeting
Minutes
Monday, April 1, 2024 at 5:00 pm

4. ADJOURN
Minutes:

CITY COUNCIL ACTION: Mayor Pro Tem Johnson moved, seconded by Council Member Mobley to adjourn the meeting at 5:49 p.m. MOTION CARRIED 5/0
Contact: Siana L. Emmons, City Clerk ([email protected] (707)725-7600) 621 11th Street, Fortuna CA
Zoom Option: 1-669-900-9128 Meeting ID 893 1087 2984 Password 503365
We May Disagree, But We Will Be Respectful of One Another All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council Personal Attacks are Unacceptable
The City Council May Take Action on any Item on this Agenda.

1. CALL TO ORDER / FLAG SALUTE / ROLL CALL
Minutes:

Mayor Trent called the public meeting to order at 6:00 p.m. and led the flag salute. ROLL CALL:

Council Member Conley - Present, Council Member Losey - Present, Council Member Mobley - Present, Mayor Pro Tem Johnson - Present, Mayor Trent - Present

2. PRESENTATIONS / PROCLAMATIONS
a. National Public Safety Telecommunications Week
Minutes:

Jade Campbell accepted the National Public Safety Telecommunications Week Proclamation and Sergeant Kadle expressed appreciation for all of the City's Safety Dispatchers.

3. ORAL COMMENTS FROM THE PUBLIC
Minutes:

There being no public comments, Mayor Trent closed the public comment section.

4. CONSENT CALENDAR
Minutes:

PUBLIC COMMENTS: There being no public comments, Mayor Trent closed the public comment Regular Meeting Agenda
Minutes
Monday, April 1, 2024 at 6:00 pm
section. COUNCIL ACTION: Council Member Losey moved, seconded by Mayor Pro Tem Johnson to approve Consent Calendar items a - c. AYES: Council Members Conley, Losey, Mobley, Mayor Pro Tem Johnson, Mayor Trent NOES: None ABSTAIN: None ABSENT: None MOTION CARRIED: 5/0
a. City Council Minutes – March 18, 2024 (Regular Meeting) b. Report of Disbursements
c. Approve Allocation of One (1) Seasonal Part-time Parks Maintenance Worker I Position

5. CITY COUNCIL BUSINESS
a. Authorization to Award a Construction Contract for the CBDG Barrier Removal Project (CIP 9977) to RAO Construction and establish a maximum contract amount of $427,716 Minutes:

STAFF REPORT: Project Manager Mat Nyberg provided a staff report on awarding a Construction Contract with RAO for the CDBG Barrier Removal Project (CIP 9977). PUBLIC COMMENT: There being no public comments, Mayor Trent closed the public comment section. COUNCIL ACTION: Council Member Mobley moved, seconded by Council Member Conley to approve the Project Plans and Authorize the City Manager to award the CDBG Barrier Removal Project (CIP 9977) to RAO Construction and establish a maximum contract amount of $427,716. AYES: Council Members Conley, Losey, Mobley, Mayor Pro Tem Johnson, Mayor Trent NOES: None ABSTAIN: None ABSENT: None MOTION CARRIED: 5/0
b. Authorization to Award the Contract for the Wastewater Treatment Plant Percolation Pond Rehabilitation Project 2024
Minutes:

STAFF REPORT: Project Manager Mat Nyberg provided a staff report on Awarding a Construction Contract to Wendt Construction for the Plant Percolation Pond Rehabilitation Project 2024. PUBLIC COMMENT: There being no public comments, Mayor Trent closed the public comment section. COUNCIL ACTION: Mayor Pro Tem Johnson moved, seconded by Council Member Conley to award the contract to Wendt Construction for $110,115, establish a maximum contract amount of $114,000, and authorize the City Manager to execute the contract and other related documents. AYES: Council Members Conley, Losey, Mobley, Mayor Pro Tem Johnson, Mayor Trent NOES: None ABSTAIN:

None ABSENT: None MOTION CARRIED: 5/0
c. Revise Measure E Committee Bylaws - Meeting Date Schedule, Resolution 2024-07 Minutes:

STAFF REPORT: Finance Director Aaron Felmlee provided a staff report on the revision of Measure E Committee Bylaws. PUBLIC COMMENT: There being no public comments, Mayor Trent closed the public comment section. COUNCIL ACTION: Council Member Losey moved, seconded by Council Member Mobley to adopt Resolution 2024-07; A Resolution of the City Council of the City of Fortuna Establishing the Duties, Responsibilities, and Terms of the Measure “E” Independent Community Oversight Committee Including an Amended Meeting Schedule. AYES: Council Members Conley, Losey, Mobley, Mayor Pro Tem Johnson, Mayor Trent NOES: None ABSTAIN: None ABSENT: None MOTION CARRIED: 5/0
d. Amend the City’s Annual Fee Schedule for Fiscal Year 2023-24 to Provide for Amended Fees in the Parks and Recreation and River Lodge Departments; Resolution 2024-08 Minutes:

STAFF REPORT: Parks and Recreation Director Heather Stevens provided a staff report on the amendment of the City's Annual Fee Schedule for FY 2023-24 to amend fees in the Parks and Recreation and River Lodge Departments. PUBLIC COMMENT: Denise Carpenter - spoke in support of the City's Parks and Recreation Department bringing back the "Leader in Training Program". She expressed appreciation for the skills and leadership learning potential this program would offer youth in Fortuna. There being no additional public comments, Mayor Trent closed the public comment section. COUNCIL ACTION:

Council Member Conley moved, seconded by Council Member Losey to adopt Resolution 2024-08; A Resolution of the City Council of the City of Fortuna Amending the City’s Annual Fee Schedule For Fiscal Year 2023-2024 to Provide For Amended Fees in the Parks & Recreation and River Lodge Departments. AYES: Council Members Conley, Losey, Mobley, Mayor Pro Tem Johnson, Mayor Trent NOES: None ABSTAIN: None ABSENT:

None MOTION CARRIED: 5/0

6. CITY MANAGER’S REPORT
Minutes:

City Manager Merritt Perry provided a verbal report.

7. FUTURE AGENDA ITEMS

8. CITY COUNCIL REPORTS AND COMMENTS
a. Council Member Kyle Conley
b. Council Member Mike Losey
c. Council Member Kris Mobley
d. Mayor Pro Tem Mike Johnson
e. Mayor Tami Trent

9. ADJOURN TO CLOSED SESSION
Minutes:

Mayor Pro Tem Johnson moved, seconded by Council Member Losey to adjourn to closed session at 6:48 p.m. Voice vote. MOTION CARRIED 5/0
a. CONFERENCE WITH LABOR NEGOTIATORS, City Negotiator: City Manager Merritt Perry, Employee Organizations: Fortuna Police Employees Association, Fortuna Employees Association, and the Unrepresented/Management group in accordance with Section 54957.6 of the Government Code.

Minutes:

COUNCIL ACTION: Provided direction to staff.

10. ADJOURN
Minutes:

CITY COUNCIL ACTION: Council Member Conley moved, seconded by Mayor Pro Tem Johnson to adjourn the meeting at 7:27 p.m. MOTION CARRIED 5/0
Contact: Siana L. Emmons, City Clerk ([email protected] 707-725-1409) Consent Item 4c

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STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Siana L. Emmons, City Clerk
THROUGH: Merritt Perry, City Manager
SUBJECT: Administrative Department Monthly Report for March 2024 STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

The Administration Department monthly report encompasses the following divisions: City Attorney, City Clerk, Risk Management/Human Resources and Information Technology.

CITY ATTORNEY
The City Attorney billing was 11.3 hours for the month of March for the Mitchell Law Firm, LLC.

Project support for this month included agenda review, ordinance review, contract review, and various email and telephone calls.

CITY CLERK DIVISION
For the month of March, the Clerk’s Office prepared and published three agendas for Regular City Council meetings, one Measure E agenda and one agenda for the Rohner Community Recreation Park District.

City Council Meetings
Council Meeting Date Agenda Items
March 4, 2024 Regular Meeting Cancelled 0
March 18, 2024 Regular Meeting 17
April 1, 2024 Regular Meeting 9
Totals 26
City Clerk’s Office Key Duties March
Public Records Act Requests 7
General Information Requests 25 – 30 per day, average
Ordinances 0
Resolutions 1
Minutes Prepared 4
Consent Item 4c

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Notary Services Provided 1
Claims for Damages Filed 1
FPPC Filings: 12
Legal/Proof of Publications 0
Notices Posted (Public Hearing, Agenda, Ordinance, etc.) 6 The City is preparing candidate information for the upcoming November election. There are two (2) Fortuna City Council Seats open. If you are interested in running for office or would like more information about the general election or candidate information, please visit the City’s website www.friendlyfortuna.com, send e-mail to the Deputy City Clerk at [email protected], or call 707-725-7600.

If you need to register to vote, please visit: https://registertovote.ca.gov/

RISK MANAGEMENT / HUMAN RESOURCES DIVISION
Risk Management
There were no new Worker’s Compensation claims and no new tort claims as of March 1, 2024 Currently, the City has no open claims.

Date of Claim Type of Claim Status
09/29/2022 Civil Claim CLOSED
06/14/2023 Liability Claim CLOSED
09/13/2023 Liability Claim CLOSED
On March 20, 2024, risk staff met attended a virtual training hosted by Liebert Cassidy Whitmore (LCW) on Managing Employee Injuries, Disability and Occupational Safety. The workshop was designed to familiarize all levels of supervisors and managers with the basic principles and procedures of Worker’s Compensation.

Staff met for a Department/Division Head meeting just after the last Council meeting and reviewed the City’s procedures for a work related injury. Risk staff is preparing a “flow chart” to distribute to each department to make accessing information about how to handle workplace injuries, more accessible to all employees.

Risk staff is also working on developing a Health and Wellness Committee and have applied for grant funding through the City’s risk pool, California Intergovernmental Risk Authority (CIRA), to aid in the endeavor. If grant funding is approved, staff will recommend using the first round of funding to offset the current costs of the portion of gym memberships the City pays for per the Memoranda of Understanding (MOU’s) with the Fortuna Employee’s Association (FEA) and the Fortuna Police Employee’s Association (FPEA). As the Health and Wellness Committee develop, the committee will determine how to apply grant funding to provide employees with access to instructors, walking groups and helpful information on how to establish healthier eating and water intake habits. The committee will assess how to provide more accessible services for mental health and will look to work with local agencies, to better provide resources to our employees.

Risk staff continues to participate in Associate Risk Management (ARM) courses and have successfully completed, tested and passed the first series, 400 and is now participating in the 401 Consent Item 4c

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series in preparation for testing. These courses are held virtually on Tuesday evenings at 5:30.

There will be one more series, ARM 402 to complete before testing and attempting to obtain certification. This is a nationally recognized program developed by the Insurance Institute of America and is focused on the science of risk management including avoiding, reducing and managing risk.

Human Resources
On March 21, 2024, Human Resources staff met with our regional Human Resources group which includes the Cities of Arcata and Eureka, and the County of Humboldt. The City of Arcata hired a new Human Resources/Administrative Services Director, Keira Vink, in the wake of the longtime Assistant City Manager, Danette Demello, announcing her impending retirement late last year.

The group welcomed Keira and re-established the importance of maintaining a monthly meeting.

The access to this local group of individuals, who primarily focus on similar human resources related job functions, is vital for developing lasting relationships, diversity of thought, access to new information, personal, career growth and growth for our agencies. The Human Resources Directors will meet monthly and a group of Human Resource Analysts, Payroll and Benefit Administrators and support positions, will also meet to establish a support network of local individuals working for public agencies in similar positions.

Current Recruitments:

Parks and Recreation:

Park Maintenance Worker I: Interviews completed, scores currently under review Police Department:

Police Officer Trainee: Interviews completed, scores currently under review Police Officer: Recruitment closed March 1, 2024, applications currently under review Police Dispatcher: Open until filled, still accepting applications Temporary Kennel Attendant: Recruitment closes on April 19, 2024 Public Works:

Treatment Plant Operator (TPO) Operator in Training (OIT)/ I & II: Recruitment re-published, closes April 12, 2024 at 4:00pm
Assistant City Engineer II: Recruitment on hold
Street Maintenance Worker II: Interviews completed, scores under review Utility Worker II/III: Candidate currently in background The City is always looking to recruit qualified staff for open positions. For more information about employment with the City of Fortuna, visit the City’s website www.friendlyfortuna.com, send email to the Deputy City Clerk at [email protected], or call 707-725-7600. We also encourage all interested applicants to create a user account on www.governmentjobs.com

INFORMATION TECHNOLOGY DIVISION
City Website Statistics (www.friendlyfortuna.com)
We encourage all citizens who are interested in receiving updates from the City to go on to the Fortuna’s website and sign up for e-notifications!
Consent Item 4c

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Administrative, Police, Parks & Recreation and River Lodge staff continue to work collaboratively with the Revize build team to re-vamp the City’s existing webpages. One of the more noticeable changes will be the main menu on the home page. Currently a user accesses various pages by a “drop down and fly-out” menu, which can be confusing and tedious. This update will include a change to a “mega menu”, which will allow users to visually see all page choices. There will be updates to how the calendar looks and is accessible as well as the calendar being interactive for each department. Administrative staff is in the process of creating a website committee, so the city departments can meet collectively on a monthly basis and discuss and implement changes to the website to keep it up to date and relevant. This is an exciting time for the City to “re-brand”, not only the entire City website, but specifically our Parks & Recreation, River Lodge and Police webpages.

Currently, if any members of the public would like to receive public notices from Public Works, Community Development/Planning, the Police Department or Citywide Press Releases, please visit the website at https://www.friendlyfortuna.com/enotify/index.php and sign up for enotifications.

Computer/Network
Staff is working to eliminate outdated and redundant services provided by AT&T to produce cost savings at City Hall and satellite locations such as the park office and corporation yard.

In more recent IT news, the City will have upgrade all Microsoft systems, as the current system will soon lose ability to receive updates and tech support. In the next six months, the City will upgrade all users to Microsoft 365. This will be a large undertaking and support from Nylex will be crucial for the transition.

In addition, staff is reviewing budgeting available for eventual replacement of the Tricaster, which is the equipment utilized by Access Humboldt to produce our public meetings on public, education and government television (PEGTV).

RECOMMENDED COUNCIL ACTION:

Receive Administrative Monthly Report. Consent Agenda vote.

Consent Item 4d

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STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Shari Meads, Community Development Director
THROUGH: Merritt Perry, City Manager
SUBJECT: Community Development Department Monthly Report for March 2024 STAFF RECOMMENDATION:

Receive report as an informational item.

PLANNING DEPARTMENT ACTIVITIES:
 Four (4) new planning applications were received and processed through the City’s OpenGov portal including two Subdivision applications and two Pre-Application Meeting applications.
 Mill District Specific Plan efforts continue including Utility and Infrastructure Conceptual Design scoping, City staff weekly meetings with the project consultant team, and continued refinement of the environmental document project description.  Participation in regional climate action planning efforts including interviews with the project consultants and County staff, meetings, document review, and formulation of mitigation measures.
 The Community Development Director presented a Community Development update at the March 27th Fortuna Sunrise Rotary meeting.
 The Community Development Director attended the March 28th Redwood Region Rise Meeting to discuss regional economic development.

PLANNING COMMISSION ACTIVITY:
 March 12th meeting
o Housing Element Annual Progress Report and General Plan Annual Progress Report. The reports were filed with the California Department of Housing and Community Development and Governor’s Office of Planning and Research as required by state law.
 March 26th meeting
o Tru by Hilton Design Review was approved 6-0.

Consent Item 4d

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PLANNING PERMITS UNDER REVIEW:
 Olsen Sisemore Minor Subdivision located at 939 Fernwood Drive. The applicant seeks to subdivide a four-acre parcel into a one-acre parcel with a three-acre remainder parcel.

Applicants: Heidi Olsen and Dan Sisemore.
 Lot Line Adjustment at Kenmar Road/Jayce Court as part of an in-process subdivision.

Applicants: Tina Christensen and Abe Fockaert.
 Design Review Application for Crivello Motors for a new 18x40 foot carport.

Applicant: Gary Crivello
 Conditional Use Permit Application to allow residential land use in the Retail Commercial zoning district at 619 Main Street.

Applicant: Fernando Olea
 Major Subdivision at Kenmar Road. Phase 3 of a 3-phase subdivision. Phase 3 will result in seven lots available for residential construction.

Applicants: Tina Christensen and Abe Fockaert.

GRANT STATUSES:
 CDBG Program Income Barrier Removal Project; Awarded $624,990.65 for seven sites requiring numerous ADA improvements including sidewalk, ramp, and parking pad installations.

Status: Bid awarded to RAO Construction on March 26, 2024. Construction to begin soon.  Building Forward Library Infrastructure grant; Awarded $219,083 for:

ADA Modifications, Solar PV and battery storage, emergency generator, window upgrades, electrical/communication wiring, and interior finishes.

Status: Construction is anticipated to begin Spring 2024.  Habitat Conservation Fund Vancil Forest Acquisition; Application for $175,750 Acquisition of a 6.25-acre forest adjacent to Rohner Park.

Status: Awarded 3/20/24
 Headwaters Fund Planning Grant: Awarded $75,000
Planning grant to facilitate adoption of the Mill District Specific Plan.

Status: Public Outreach began January 2024; General Plan EIR updates underway, site design and design standards developed.
 Local Early Action Planning (LEAP) Grant: Awarded $65,000 Planning grant to facilitate adoption of the Mill District Specific Plan.

Status: Public Outreach began January 2024; General Plan EIR updates underway, site design and design standards developed.

BUILDING DIVISION ACTIVITIES:
 The Building Division’s permit summary for March 2024 is attached.

RECOMMENDED COUNCIL ACTION:

Receive Community Development Department Monthly Report (March). Consent Agenda vote.

Consent Item 4e

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STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Merritt Perry, City Manager
SUBJECT: Finance Department Monthly Report
STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

EMMA Annual Bond Disclosure Reports:

The City is required each year to post and make public on the Municipal Securities Rulemaking Boards (MSRB) Electronic Municipal Market Access (EMMA) website data related to each of the City’s outstanding Bond Series. Currently the City has three outstanding bond series. Those are the 2017 Refunded Water Bonds, 2017 Refunded Wastewater Bonds and the 2018 Successor Agency Tax Allocation Bonds. The data requirements include financial statements, bond information such as debt service schedules and fund balances, operating information, and reporting of any significant events.

The EMMA website was established to increase the transparency of the municipal securities market by providing free public access to municipal securities disclosures and data. EMMA provides investors, state and local governments, and other market participants with key information and tools to put that information into context. Staff is pleased to announce that it has completed the Annual Bond Disclosure Reports and posted all required material and data on the EMMA website before the deadline. For those interested in seeing the report please visit https://emma.msrb.org/Home/Index and search for “City of Fortuna”.

Measure E Update:

The Measure E committee met on April 2, 2023 at 5:30 pm. The primary purpose of this meeting was for the committee to approve a list of recommended projects to be funded by Measure E. The finalized list will be presented to the City Council at a special budget workshop on April 25 by the Measure E committee chair.

List of Measure E items funded this month:
 (2) Police Detective Positions
 Police Community Services Officer Position
 Police Records Clerk Position
 Parks and Recreation Director Position
Consent Item 4e

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 Recreation Program Supervisor Position
 Police Officer Over Hire
 Transit Trips to Eureka for Seniors
 PT Code Compliance Officer Position
 K-9 Program
 Storm Drain Infrastructure Vulnerability Assessment Project  Police Facility Project
An activity log displaying important Finance data is attached for informational purposes.

RECOMMENDED COUNCIL ACTION:

Receive Finance Department Monthly Report. Consent Agenda vote.

ATTACHMENTS:
 Finance Staff Activity Log for March 2024
City of Fortuna
Finance Department
Fiscal Year 2023/24
Finance Department October November December January February March Activity Log 2023 2023 2023 2024 2024 2024
Payroll Checks Issued: 215 220 236 236 217 311
Accounts Payable Checks Issued: 215 267 225 238 190 203 Number of Invoices Processed: 413 552 443 473 415 430
CDBG Loan Payments/Payoff 1 0 0 0 0 0
# Telephone Calls 1469 1409 1483 1671 1600 1490
Avg Daily 67 74 74 80 80 71
Daily Walk-in Customers
Utility 391 411 457 454 417 430
Bldg 41 32 21 30 25 33
Plan 21 17 19 15 12 14
Other 77 52 50 54 59 48
Total: 530 512 547 553 513 525
Average Daily Walk-in Customers 24 27 27 26 26 25
Monthly Bills 4601 4613 4610 4608 4609 4608
Reminder Notices 487 451 473 443 475 483
Shut Off Notices Mailed 232 278 277 308 263 279
Shut Offs 39 21 31 23 38 23
Ebills - Bills sent via email 460 466 476 480 489 487
Utility Bills paid online 1267 1284 1297 1330 1339 1347 % of Utility bills paid in person 8% 9% 10% 10% 9% 9%
Public Works Calls Dispatched: 80 97 72 96 108 89
Avg Service Calls 90.3
Utility Billing Aging Report Total Bal Current 30 Days 60 Days 90 Days $ 609,082 $ 450,753 $ 94,418 $ 21,828 $ 42,083

74.0% 15.5% 3.6% 6.9%
74%
15%
4% 7%
Utility Accounts Aging
Current
30 Days
60 Days
90 Days
Consent Item 4f

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STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Heather Leigh Stevens, Parks and Recreation Director THROUGH: Merritt Perry, City Manager
SUBJECT: Parks & Recreation Monthly Report for March 2024 STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

Parks & Facility Maintenance (non-routine items)
 Replacement of two bad ballasts and 13 burnt out bulbs at the Pavilion  Install new safety pads at the Rohner Park outdoor basketball court  Chip delivery for Garden Club
 Install new trim boards at the cook shack patio
 Remove low hanging tree branch at Rohner Park picnic tables by Pavilion Field  Address plumbing issues at River Lodge
 Pick up and deliver 50 chairs to Library
 Remove bags of ivy from forest project
 Paint the washes brown for the bird netting project at River Lodge  Check drain inlets and the hillside drains before storm  Unplug the hillside drainage culvert and repair damaged roadway on the hillside  Inspect and repair River Lodge roof leak over women’s restroom  Re-gravel pathway to the bike pump track at Newburg Park  Caulk Monday Club kitchen windows
 Replace sink aerator at River Lodge men’s restroom
Depot Museum
March’s visitor total at the Fortuna Depot Museum was 199 people. This is well within the standard range for our recent March visitation totals (not factoring in the 2020-21 pandemic years). Recent years’ March visitor totals were: 2023: 201, 2022: 198, 2021: 76, 2020: 89, 2019:
207, 2018: 217, 2017: 186, 2016: 167, 2015: 301, 2014: 334. In March 2024 we welcomed California visitors from Arcata, Crescent City, Eureka, Ferndale, Fortuna, Livermore and Scotia, as well as out-of-state visitors from Nevada, Ohio and Oregon. We installed a seasonal exhibit in Consent Item 4f

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the museum front room’s display case, featuring spring-themed art, sheet music, magazines, books and antique postcards from the Depot Museum collection.

Transit
Passengers on the Fortuna Transit Bus totaled 837 trips during the month of March 2024 which was 16 riders less then March 2023. The lift was used for non-wheelchair riders 59 times and 32 times for wheelchair trips. The Fortuna Transit had 14 new riders during the month of March. To date, we have had 1183 less riders in 23-24 fiscal year than in 22-23. The Eureka Medical trips on Tuesdays have been going well averaging around 3-4 medical appointments per week.

March 2023 March 2024 YTD~July 2022-
June 2023
YTD~July 2023-
June 2024
# of Passengers 853 837 8650 7467
Total Miles 2544 2327 26059 21273
Service Miles 2345 2204 24104 19922
Total Hours
Worked
346 310.75 3345.25 2698.75
Service Hours
Worked
300.5 272.25 2942.75 2283
Classes, Rentals and Sports
Results Fit Camp continues holding classes in the Pavilion six times a week, Pickleball plays in the Pavilion on Monday, Wednesday and Fridays from 9am – 12pm the cost is $3.00 and is open to anyone 18 years of age or older. Rohner Rec Hall was utilized for several user group meetings as well as AARP tax help for seniors. It was rented 3 times for personal usage.

Adult Basketball League kicked off this month. Fees are $5 for Fortuna residents and $10 for nonresidents. Games are played in the evenings at both Fortuna High School gyms Monday through Thursdays, from beginning of March through the second to last week of April. There are a total of 224 adults registered for 3 separate divisions: men’s upper division, men’s lower division, and women’s division. The men’s lower division has 91 players on 8 teams, the men’s upper division has 64 players on 6 teams, and the women’s division has 6 teams. This program also staffs 2 referees, and a book keeper/ someone to run the scoreboard for each game. There are 3-6 games each night and we have started training new part-time employees to get involved with the program.

Recreation Programs
During the month of March we finished the remainder of the youth Hot Shots Basketball Program. The program served 272 children ranging from Kindergarten to Fourth grade, which were divided into 32 different teams. The games were held at both Toddy Thomas gym and the Firemen’s Pavilion.

The Fortuna Parks and Recreation Playgroup, in partnership with First 5 Humboldt, is held on Thursdays from 10:30-12:30 in the Firemen’s Pavilion. The program is available for ages 0-5 and their caregivers to attend to socialize, receive support, and to be involved with the Consent Item 4f

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community. For the month of March, we held four playgroups with a total attendance of 99 participants.

Also held in the Firemen’s Pavilion is our Drop-in volleyball program. Throughout March, we held four drop-in volleyball nights with a total attendance of 91 participants, 64 of those being under 14 years old.

As we are preparing for the future of our department and the programs within, we currently have 20 young adults staffed that are able to gain not only specific workplace skills and knowledge, but also make meaningful connections to our communities’ youth and families.

Roller Skating
The Fortuna Skating Rink offered Public Skate on Fridays, Saturdays and Sundays all through March, with the exception of the last Sunday of the month. 681 skaters were served over the course of 14 Public Skate events, along with seven semi-private skate parties held during those public skate hours. We also hosted 19 private parties, two of which were school fieldtrips, which served 650 community members for the month of March.

Community Service
The Parks & Recreation Department currently has two people signed up to perform Community Service with a total of 20.25 hours served in the month of March.

RECOMMENDED COUNCIL ACTION:

Receive Monthly Parks & Recreation Department Report. Consent Agenda Vote.

Consent Calendar Item 6

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STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Casey J. Day, Chief of Police
THROUGH: Merritt Perry, City Manager
SUBJECT: Police Department Monthly Report for March 2024 STAFF RECOMMENDATION:

Receive report as an informational item.

Patrol Statistics:

During the month of March 2024, the Fortuna Police handled 1,276 calls for service. 56 arrests were made including 10 felony arrests and 46 misdemeanor arrests. A total of 70 citations were issued for traffic offenses or other miscellaneous violations. Crime statistics and information on calls for service are available at forpd.crimegraphics.com.

Staffing:
 One lateral law enforcement officer with local area experience has completed the preemployment, background investigation phase. The officer will be onboard in April.  One entry-level candidate has been selected for the June academy sponsorship program and is currently in the pre-employment background investigation phase.  One entry-level Public Safety Dispatch candidate is currently in the pre-employment background phase.

Measure Z (SRO Position):

During the month of March, the Measure Z Committee recommended funding for the Police Departments School Resource Officer position. The Board of Supervisors will review the rankings and recommendation in June before approving final funding.

Community Events:

During the month of March, members of the Fortuna Police Department began the planning phase for the Rodeo event K9 raffle and fundraiser.

RECOMMENDED COUNCIL ACTION:

Receive Police Department Monthly Report (March). Consent Agenda vote.

Consent Item 4h

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STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Brendan Byrd, Public Works Director/City Engineer SUBJECT: Public Works/Engineering Department Monthly Report STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

Public Works Director/City Engineer
Police Facility Remodel Project
This last month at the Police Facility has
been very productive. With better
weather, the contractor was able to
complete most of the exterior site work,
including paving, fencing and gates,
landscaping, and the parking structure. The
only remaining items include parking lot
striping, which is scheduled for April 10th,
and other minor punchlist items. The
building interior is largely complete, and
currently the contractor is only working on
punchlist items. Staff anticipate work
under the construction contract with
Sequoia will be completed by the end of
the month.

Key remaining items for the project include
the solar panels, radio, dispatch center
installation, which is scheduled to take
place in mid-to-late April, and the final
building cleaning. Staff anticipate some
Police operations will begin to move into
the building in early May. Through the next
month, staff will be focusing on other
portions of the move, largely including the
phone systems, the 911 systems, and the
server room components. At this time, staff
estimate that the facility should be fully
staffed and operational sometime in June.

Consent Item 4h

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ADA Barrier Removal Project
The project was approved by Council to award to the low bid contractor, RAO Construction, at the April 1st Council meeting. Since that time, staff have been working on contracting, bonding and insurance. Staff anticipate conducting a preconstruction meeting with the contractor and the Engineer (GHD) in late April, and are tentatively planning on beginning project work in May. 9 th Street/Christian Ridge Sewer Line/Slide
As noted in a previous staff report, there was a landslide near the intersection of 9th Street and Christian Ridge that exposed a 6” sanitary sewer main. Since the landslide, staff installed a temporary sewer bypass pump system that has been operating reasonably well (albeit with regular maintenance and inspection). Recently, staff met with one of the City’s on-call engineering consultants with the purpose of developing engineering plans for a repair to the gravity sewer line in the area. Staff are hopeful that the repair can occur this summer, and the bypass system can then be removed.

Kenmar Interchange Improvement Project
The City was recently notified that we were not successful in obtaining grant funding through either the State or Federal Reconnecting Communities grant programs. Staff are still awaiting the results of the recently submitted RAISE grant, where awards are slated to be announced in the summer of 2024.

Project Grant Closeouts
Staff are working on finalizing several grant projects, including the Corp Yard Generator, the Water System Generators, the Prop 1 Stormwater Project on 12th Street, and the Stormdrain Vulnerability Assessment. Staff are hopeful that all projects will be completed and closed out prior to the beginning of next fiscal year.

Stormdrain Vulnerability Assessment and Sewer Collection System Master Plan Over the past few months staff have finalized reviews of the draft Sewer Collection System Master Plan and the Stormdrain Vulnerability Assessment. Once finalized, staff plan to present the findings of the plans as a presentation to the Council.

Utilities Division- Utility Lead
Service Call Summary
 In the month of March the utilities division completed 89 service calls by operators. Figure 1 below shows the distribution of service calls by type.  Underground Service Alert (USA) - there were zero miss-marked lines, resulting in zero broken utilities.

Consent Item 4h

Page 3 of 7 ends

Figure 1. Utility division service calls by type in March.

Water Distribution System
 Read water meters and completed meter worksheet.
 Utilities crew spent most of the time in March focused on hydrant flushing, which was fully completed this month. The estimated flushing was approximately 3,850,000 gallons in March.
 Completed 23 water shut off for non-payments.
 The utilities team installed no new services in the month of March.  In the month of March the utilities team changed out 10 dead water meters.  Continued to check service lines for lead. Tyler has made great progress on these.  Replaced two bad angle valves.
 Repaired leak on Sunny Heights Drive
 There was a main line break at the corner of Summer and Newburg Road. This leak was caused by an old 1’’ connection that blew off the mainline. 0 5
10 15
20 25
30 35
Connect Disconnect Occupant Change Service Action
Number of Calls
Service Call Type
Consent Item 4h

Page 4 of 7 ends

Table 1. Water leak rate and water loss estimates for March 2024.

Wastewater Collections System
 Utilities cleaned 14,000 feet of sewer main.
 There was two sewer plugs in the month of March resulting in no spills or overflows.  Daily sewer pump maintenance up on Christian Ridge.

Miscellaneous Tasks
 The utilities division performed monthly maintenance on the division’s heavy equipment, including greasing and checking all fluids.
 Utility Worker II, Dan Rockholt, has obtained his Class B drivers permit and has been doing drivers training.
 Utility Worker II, Andy White, took his water D2 test in Redding and passed! He has now met all his job requirements.

Water Treatment/Wastewater Division- Chief Plant Operator Wastewater Treatment
Table 2. March wastewater plant effluent flows for the past five years in Million Gallons (MG) and Million Gallons per Day (MGD).

Date Location Pipe
Information
Estimated
Leak Rate
(Gallons
per Minute)
Leak
Duration
Total
Estimate
Leak
Volume
(Gallons)
3/18/2024 Sunny Heights
Drive
Thin black
plastic
2 3 Days 8,640
3/30/2024 Summer @
Newburg Rd.
1’’ Saddle 5 4 Hours 1,200
Year 2020 2021 2022 2023 2024
Total Monthly Flow, MG 35.810 51.290 26.940 79.920 70.470 Maximum Daily Flow, MGD 1.528 2.630 1.240 4.160 3.890
Average Monthly Flow, MGD 1.155 1.655 0.869 2.578 2.273 Consent Item 4h

Page 5 of 7 ends

Figure 2. March wastewater plant effluent flows for the past five years in Million Gallons (MG) and Million Gallons per Day (MGD).

Wastewater Events & Maintenance Tasks Completed
 Staff removed Grit Pump # 1 due to a leaking Seal. The pump was disassembled and ordered parts for replacement.
 The division has a new Operator in Training (OIT), Robert Gearhart, who is doing a good job.
 Wastewater and Engineering staff preformed river and monitoring well sampling for the basin plan amendment study.
 Staff sampled Eel River Brewery discharge to sewer system to help determine the impact on the treatment plant.
 Staff changed and adjusted belts at the Nob Hill sewer lift station Water Treatment
Table 3. March potable water production for the past five years in Million Gallons (MG). 0 10
20 30
40 50
60 70
80 90
0 0.5
1 1.5
2 2.5
3 3.5
4 4.5
2020 2021 2022 2023 2024
Total Flow, MG
Flow, MGD
Total Monthly Flow, MG MAX Daily Flow, MGD AVG Daily Flow, MGD Year 2020 2021 2022 2023 2024
Total Production, MG 31.799 30.085 28.105 27.256 27.962 Maximum Daily, MG 1.121 1.487 1.065 1.514 1.182
Average Daily, MG 1.026` 0.970 0.907 0.879 0.902
Consent Item 4h

Page 6 of 7 ends

Table 3. March potable water production for the past five years in Million Gallons (MG).

Water Events & Maintenance Tasks Completed:
 Staff completed and submitted the Electronic Annual Report to the state.

General Services and Streets - General Services Superintendent The following is a list of scheduled assignments completed by the General Services staff in March:
 Staff removed temporary cold patch material and installed hot mix asphalt on one corner ramp on Redwood Way, two corners of Alamar Way and River Walk Drive. This was part of the new concrete installed in the fall of 2023. In addition, staff placed hot mix asphalt at the Waste Water Treatment Plant.
 Staff refurbished and replaced broken parade barricades for the upcoming special event season. The long white parade barricades are used in many applications from directing traffic to road closures.
 Staff created a cradle out of recycled lumber to house the new snowflake decorations for the Downtown Merchants. The cradle is to keep the snowflakes from falling and the possibility of being damaged at their storage facility.  Staff assisted Park maintenance staff with the folding door at the River Lodge Conference Center. Staff also assisted Parks with push mowing and weed eating the hardball field in Newburg Park.
 Staff patrolled drainage inlets and removed down limbs from a recent weather event. Staff removed material from a drainage ditch on Kenmar Road near the Fortuna Boulevard.  At the request of the Traffic Safety Committee, staff extended the red curb at the Humboldt Veterinary Group driveway approach located on the Fortuna Boulevard.  Staff assisted the contractor for the new police facility by loading a truck with grindings to be used in the new parking lot, which was recently paved.  Staff provided traffic control for survey crew for the Mill Creek Habitat Connectivity Project. Staff provided traffic control at the new Police Facility for the contractor paving 0 0.5
1 1.5
2 24
26 28
30 32
34 2020 2021 2022 2023 2024
Flow, MGD
Production, MG
Production Max Daily Avg Daily
Consent Item 4h

Page 7 of 7 ends

task. Staff also assisted in providing traffic control for the remaining two solar power street lights on 12th.
 Staff performed maintenance on the boom mower tractor and replaced worn blades on the mower head.
 Staff replaced the banners on the downtown street lights to the new seasonal spring theme.  Staff trimmed vegetation and trees in alleys, weed eat, and mowed various locations. Staff mowed the tall vegetation at the rodeo arena.
 Staff resumed the task of putting in a wash rack at the Corporation Yard.  In addition to the special tasks noted above, staff also engaged in the following regular routine maintenance activities including USA’s, street sweeping, recycling and trash management, collect batteries at City Hall, road maintenance, Dog Park maintenance, vegetation management including sniping of curbs, and safety training and inspections.

Staff is available for questions, requests, and emergency responses to the community.

RECOMMENDED COUNCIL ACTION:

Receive Public Works Department Monthly Report. Consent Agenda vote.

Consent Item 4i

Page 1 of 2 ends

STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Jennifer Lourenzo, Conference Center Manager
THROUGH: Merritt Perry, City Manager
SUBJECT: River Lodge Conference Center and Fortuna Monday Club Monthly Report for March 2024
STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

The River Lodge and Monday Club held a total of 26 events in the month of March.

There were six scheduled monthly meetings between the two facilities. One birthday celebration, and two baby showers were also held.

The Fortuna Chamber of Commerce held their annual Awards celebration and dinner at River Lodge. The “shin-dig” was country themed. Local businesses were recognized and awarded for their services to our community.

CalFire held a training at River Lodge. CalFire is so appreciative of the space here at River Lodge.

Soroptimist International of the Eel River Valley hosted their annual Awards event at River Lodge.

Soroptimist is a global women’s organization whose mission is to improve the lives of women and girls through programs leading to social and economic empowerment.

For the second consecutive year, CALTROUT (California Trout) held their information meeting for local, tribal and environmental group on rivers, dams and watersheds. CALTROUT works to ensure healthy waters and resilient wild fish in California.

Fortuna Kiwanis held their annual Quarter Mania fund raiser. The evening was a huge success and was sold out.

Scottish Rite and Shriners hosted their annual Shrimp Feed at River Lodge. This group has been raising funds for a new language center in Fortuna. One of their members, Larry Nicholson, reported that they are very close to making this happen.

The Knights of Columbus held their annual Corned Beef and Cabbage feed on St. Patrick’s Day.

This event is always well attended.

Consent Item 4i

Page 2 of 2 ends

The Fortuna Garden Club held the 47th Annual Daffodil Show at River Lodge. The two-day event and sale attracts many daffodil enthusiasts. The show also includes daffodil judging with ribbons and prizes given to the best in each featured class. The show also includes prizes for flower arrangements.

RECOMMENDED COUNCIL ACTION:

Receive River Lodge & Monday Club Monthly Report. Consent Agenda vote.

River Lodge
March Monday Club
2024
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1-Mar 2-Mar
Chamber Dinner
Memorial
3-Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar
Corn Hole Tournament Cal Fire SIERV Cal Trout Kiwanis
Chamber Rotary Concert Series
10-Mar 11-Mar 12-Mar 13-Mar 14-Mar 15-Mar 16-Mar
SoHum Health SoHum/Civics Kitchen Use Shrimp Feed
Baby Shower FGC Rotary Birthday
17-Mar 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar
Knights of Columbus Training Seminar Daffodil Show Daffodil Show Chamber Rotary
24-Mar 25-Mar 26-Mar 27-Mar 28-Mar 29-Mar 30-Mar
Daffodil Show
Senior Jam Redwood Prep Seminar STHD 4-7pm Baby Shower
EASTER 3/31/2024 Friends of Library/ FDM
Consent Item 4j

Page 1 of 16 ends

STAFF REPORT
Consent Agenda Item
DATE: April 15, 2024
TO: Honorable Mayor and City Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Report of Disbursements for April 3 and April 11, 2024 STAFF RECOMMENDATION:

Receive staff report of disbursements that were processed for the City of Fortuna and the Successor Agency (Fortuna Redevelopment Agency) if applicable, as an informational item only.

REPORT OF DISBURSEMENTS:

Disbursement was processed as follows:

April 3, 2024 $ 96,511.60
April 11, 2024 $ 447,338.50
RECOMMENDED COUNCIL ACTION:

Informational Item. Receive report by Consent Agenda vote.

ATTACHMENTS:
 Disbursements Detail Report for April 3, 2024
 Disbursements Detail Report for April 11, 2024
Amount
78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 23.5 4/3/2024 8:10:13 AM Page 1 of 6
78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 23.5 78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 195.3 78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 23.5 78952 04/03/2024 GROCERY OUTLET 040224 Catering Supplies - River Lodge 8.49 78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 23.5 78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 23.5 78949 04/03/2024 FRIENDS OF THE FORTUNA LIBRARY 032724 River Lodge Rental Fee Refund 225 78950 04/03/2024 GHD INC 380-0047941 Kenmar/101 Interchange Improvement Project 14524.26 78951 04/03/2024 GRAINGER 9055981162 Shop Absorption/Vibration Mount - WWTP 99.3 78947 04/03/2024 FORTUNA ACE HARDWARE 374078 Bleach Bathroom Cleaner - Monday Club 5.41 78947 04/03/2024 FORTUNA ACE HARDWARE 374082 Clorox Splashless Detergent - River Lodge 8.67 78948 04/03/2024 FREEDOM FUEL 20052 Equipment Fuel 35.39 78947 04/03/2024 FORTUNA ACE HARDWARE 373994 Supplies - WWTP 107.97 78947 04/03/2024 FORTUNA ACE HARDWARE 374001 Supplies - WWTP 19.9 78947 04/03/2024 FORTUNA ACE HARDWARE 374077 Bleach Bathroom Cleaner - River Lodge 10.83 78947 04/03/2024 FORTUNA ACE HARDWARE 373780 Supplies - Parks 46.28 78947 04/03/2024 FORTUNA ACE HARDWARE 373818 Supplies - Parks/River Lodge 52.05 78947 04/03/2024 FORTUNA ACE HARDWARE 373818 Supplies - Parks/River Lodge 25.81 78947 04/03/2024 FORTUNA ACE HARDWARE 373770 Janitorial Supplies - Library/CH/Parks 30.33 78947 04/03/2024 FORTUNA ACE HARDWARE 373770 Janitorial Supplies - Library/CH/Parks 9.75 78947 04/03/2024 FORTUNA ACE HARDWARE 373770 Janitorial Supplies - Library/CH/Parks 25.79 78946 04/03/2024 FORBUSCO LUMBER 275357 Supplies - Parks 25.94 78947 04/03/2024 FORTUNA ACE HARDWARE 373339 Leather Gloves - WWTP 19.52 78947 04/03/2024 FORTUNA ACE HARDWARE 373717 Supplies - General Services 14.73 78946 04/03/2024 FORBUSCO LUMBER 275195 Concrete Mix - Parks -0.57 78946 04/03/2024 FORBUSCO LUMBER 275195 Concrete Mix - Parks 8.12 78946 04/03/2024 FORBUSCO LUMBER 275357 Supplies - Parks -1.56 78946 04/03/2024 FORBUSCO LUMBER 274259 Supplies - Streets/General Services 23.92 78946 04/03/2024 FORBUSCO LUMBER 274259 Supplies - Streets/General Services -1.68 78946 04/03/2024 FORBUSCO LUMBER 274259 Supplies - Streets/General Services 23.93 78946 04/03/2024 FORBUSCO LUMBER 274007 Supplies - Every 15 Minutes -2.33 78946 04/03/2024 FORBUSCO LUMBER 274007 Supplies - Every 15 Minutes 33.43 78946 04/03/2024 FORBUSCO LUMBER 274259 Supplies - Streets/General Services -1.67 78943 04/03/2024 DOWNTOWN MERCHANTS 12685 Storage Rental Assistance x 12 Months 360 78944 04/03/2024 ECOLAB 6344478145 River Lodge Dishmachine Rental FY 23/24 135.63 78945 04/03/2024 EMERALD FOOTBALL CLUB 032724 Park Deposit Refund 250 78941 04/03/2024 CHARLTON, GABE 032224 Per Diem 2.28 - 3.1 (Group Crisis Intervention) 51 78942 04/03/2024 COUNTY OF HUMBOLDT 033124 March Parking Fees 10.5 78942 04/03/2024 COUNTY OF HUMBOLDT 033124 March Parking Fees 22.5 78939 04/03/2024 BURKE, NICK 013124 Planning Commission 1.23.24 30 78939 04/03/2024 BURKE, NICK 022924 Planning Commission 2.27.24 30 78940 04/03/2024 BURNS, BRITTANY 032524 Park Deposit Refund 250 78938 04/03/2024 BODYWORKS 040124 April Gym Memberships 40 78938 04/03/2024 BODYWORKS 040124 April Gym Memberships 60 78938 04/03/2024 BODYWORKS 040124 April Gym Memberships 20 78938 04/03/2024 BODYWORKS 040124 April Gym Memberships 20 78938 04/03/2024 BODYWORKS 040124 April Gym Memberships 80 78938 04/03/2024 BODYWORKS 040124 April Gym Memberships 40 78936 04/03/2024 ADVANCED SECURITY SYSTEM 685102 Evidence Alarm Service FY 23/24 127.5 78936 04/03/2024 ADVANCED SECURITY SYSTEM 686020 Corp Yard Security Service FY 23/24 100.5 78937 04/03/2024 ASAP LOCK & KEY 63091 Key Copies - Playgroup 71.61 Expense Approval Report
CITY OF FORTUNA By (None)
Payment Dates 4/1/2024 - 4/3/2024
Payment Number Payment Date Vendor Name Payable Number Description (Item) 78935 04/01/2024 POSTMASTER 040124 Utility Billing Postage 3.31.24 1116.24 78935 04/01/2024 POSTMASTER 040124 Utility Billing Postage 3.31.24 1116.24 Amount
78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 4492.38 78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 15921.02 4/3/2024 8:10:13 AM Page 2 of 6
78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 1731.54 78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 410.59 78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 192.53 78975 04/03/2024 PACE SUPPLY CORP 29049537-9 Angle Ball Valve - Utilities 1117.55 78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 3523.93 78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 326.24 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231637 Boot Kit/Spark Plug - PD 125.94 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 232365 Press Hose - General Services 67.05 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 232530 Oil Filter - PD 5.74 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231490 Fuel Cleaner - PD 78.05 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231502 Vehicle Repair - General Services 53.17 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231520 Tailgate Handle - WWTP 36.37 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231471 Oil Drain - Shop 73.78 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231471 Oil Drain - Shop 73.78 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231471 Oil Drain - Shop 73.77 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231078 Scratch-Fix - WWTP 24.94 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231471 Oil Drain - Shop 73.78 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 231471 Oil Drain - Shop 73.78 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 229985 Battery - WWTP 126.43 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 230514 Coolant Hose - Utilities 63.55 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 230943 Antifreeze - Utilities 86.76 78973 04/03/2024 O'CONNOR & COMPANY 0324-45 Auditor Fees FY 23/24 480.5 78973 04/03/2024 O'CONNOR & COMPANY 0324-45 Auditor Fees FY 23/24 480.5 78974 04/03/2024 O'REILLY AUTOMOTIVE STORE 229797 Credit Core Return - Transit -306.22 78971 04/03/2024 NYLEX.NET 14866 E-waste Disposal - Lab 25 78972 04/03/2024 O&M INDUSTRIES 5791 Heater Repair - River Lodge 1289.91 78973 04/03/2024 O'CONNOR & COMPANY 0324-45 Auditor Fees FY 23/24 1441.5 78969 04/03/2024 NORMAN'S DRY CLEANERS 24088-780-A River Lodge Linen Service 122.4 78969 04/03/2024 NORMAN'S DRY CLEANERS 24088-780-A River Lodge Linen Service 34.2 78970 04/03/2024 NORTH COAST JOURNAL 2024124109 Wedding Guide Advertising - River Lodge 675 78967 04/03/2024 NAPA AUTO PARTS FORTUNA 59220 Supplies - WWTP 107.94 78968 04/03/2024 NCL OF WISCONSIN INC 501500 Lab Supplies -115.31 78968 04/03/2024 NCL OF WISCONSIN INC 501500 Lab Supplies 1532.81 78966 04/03/2024 MUNICIPAL MAINTENANCE EQUIP 020396 Equipment Maintenance - General Services 462.62 78967 04/03/2024 NAPA AUTO PARTS FORTUNA 589891 Redisensor - General Services 59.66 78967 04/03/2024 NAPA AUTO PARTS FORTUNA 59214 Oil Filter - General Services 40.84 78964 04/03/2024 MITCHELL 1 IB30792613 Teamworks Software FY 23/24 68.63 78964 04/03/2024 MITCHELL 1 IB30792613 Teamworks Software FY 23/24 68.63 78965 04/03/2024 MITCHELL LAW FIRM, THE 3678 Attorney Services FY 23/24 1776.5 78963 04/03/2024 MISSION LINEN INDUS SERV 521257004 Parks/Rink Linen Service 80.78 78964 04/03/2024 MITCHELL 1 IB30792613 Teamworks Software FY 23/24 68.62 78964 04/03/2024 MITCHELL 1 IB30792613 Teamworks Software FY 23/24 68.63 78963 04/03/2024 MISSION LINEN INDUS SERV 521256992 Copr Yard Linen Service 66.09 78963 04/03/2024 MISSION LINEN INDUS SERV 521256992 Copr Yard Linen Service 49.18 78963 04/03/2024 MISSION LINEN INDUS SERV 521256993 Wastewater Linen Service 77.79 78960 04/03/2024 MAD RIVER COMMUNITY HOSPITAL A0149606 Young Pre-Employment Physical 685 78961 04/03/2024 MENDES SUPPLY INC M261217 Trash Can Liners - Parks 180.1 78962 04/03/2024 MIRANDA'S RESCUE 040124 Animal Rescue Services FY23/24 800 78958 04/03/2024 KEENAN SUPPLY CO S013642963 Filler Flange - WWTP 188.23 78959 04/03/2024 LIEBERT CASSIDY WHITMORE 261724 Legal Services 127.5 78959 04/03/2024 LIEBERT CASSIDY WHITMORE 262272 Legal Services 127.5 78955 04/03/2024 HERRERA, ESMERALDA GONZALEZ 032524 Park Deposit Refund 250 78956 04/03/2024 HORIZON BUSINESS PRODUCTS 273924 Pens - Building 8.89 78957 04/03/2024 KADLE, JASON 032224 Per Diem 2.28 - 3.1 (Group Crisis Intervention) 51 78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 23.5 78954 04/03/2024 HELIX LABORATORIES INC 91108 Magnesium Hydroxide FY 23/24 7086.41 78954 04/03/2024 HELIX LABORATORIES INC 91175 Magnesium Hydroxide FY 23/24 7459.38 Expense Approval Report Payment Dates: 4/1/2024 - 4/3/2024 Payment Number Payment Date Vendor Name Payable Number Description (Item) 78953 04/03/2024 HEALTHSPORT 030124 March Gym Memberships 68.07 Amount
Grand Total: 96511.6
4/3/2024 8:10:13 AM Page 3 of 6
78990 04/03/2024 WYCKOFF'S 119752 Plumbing Supplies - WWTP 253.77 78990 04/03/2024 WYCKOFF'S 119783 EMT Pulling Elbow/Set Screw Connect - WWTP 17.66 78990 04/03/2024 WYCKOFF'S 119837 EMT Pulling Elbow - WWTP 7.54 78990 04/03/2024 WYCKOFF'S 118327 Supplies - Parks 17.08 78990 04/03/2024 WYCKOFF'S 118416 Equipment Maintenance - WWTP 55.18 78990 04/03/2024 WYCKOFF'S 119128 PVC Supplies - WWTP 38.99 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 725.42 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 1545.62 78989 04/03/2024 VERIZON WIRELESS 9960129351 SCADA Messaging Service FY 23/24 5.28 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 228.35 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 98.17 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 2799.22 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 111.19 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 78.95 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 453.52 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 57.57 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 1669.48 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 711.37 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 60.11 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 5746.25 78988 04/03/2024 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 24-742692 Fuel 397.45 78985 04/03/2024 STEVENS, HEATHER 032824 Expense Reimbursement - Playgroup Toys 260 78986 04/03/2024 SWRCB 032724 Grade 1 Certification - S Berrey 125 78987 04/03/2024 TRENT, TAMI 040124 Per Diem/Mileage 3.8 - 3.9 (LOCC Meeting) 201.27 78982 04/03/2024 SHERLOCK RECORDS MANAGEMENT4181 Finance Record Storage Service FY 23/24 50 78983 04/03/2024 SPORT & CYCLE 227853 Rain Gear/Boots - WWTP 466.28 78984 04/03/2024 STAPLES BUSINESS CREDIT 7629571220 Envelopes - Planning 36.76 78980 04/03/2024 RON DUPRATT FORD 477604 Converter/Gasket/Core Deposit - PD 1339.25 78980 04/03/2024 RON DUPRATT FORD 478535 Door Scuff Plate - PD 62.34 78981 04/03/2024 SCOTIA SCHOOL 032724 Park Deposit Refund 200 78979 04/03/2024 RECOLOGY EEL RIVER 657483 Debris Disposal 344.4 78979 04/03/2024 RECOLOGY EEL RIVER 657520 Debris Disposal 266 78979 04/03/2024 RECOLOGY EEL RIVER 657591 Debris Disposal 162.4 78977 04/03/2024 PLATT ELECTRIC SUPPLY 5A37714 Lights - Parks 320.62 78977 04/03/2024 PLATT ELECTRIC SUPPLY 5A69428 Lights - River Lodge 78.34 78978 04/03/2024 PRIMOFIORE, JUSTIN 032224 Per Diem 4.7 - 4.10 (SLI Session 7) 243 Payment Number Payment Date Vendor Name Payable Number Description (Item) 78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 2644.84 78976 04/03/2024 PACIFIC GAS & ELECTRIC CO 03240845 46580260845 546.95 Expense Approval Report Payment Dates: 4/1/2024 - 4/3/2024 4/3/2024 8:10:13 AM Page 4 of 6
100-6025-1200 Professional Services 50
100-6025-2000 Professional Services 127.5
100-6035-5450 Personnel Services 685
100-6505-5400 Utility - General & Electric 326.24
100-6505-5450 Utility - General & Electric 1731.54
100-6505-5500 Utility - General & Electric 410.59
100-5715-5450 Vehicle Repairs 73.78
100-5720-4100 Equipment Repair 536.4
100-5743-5450 Pavilion Maintenance 320.62
100-6000-1400 Audit Fees 1441.5
100-6020-1300 Legal Services 1776.5
100-6020-1600 Legal Services 255
100-5505-4000 Vehicle Fuel & Oil 57.57
100-5505-4100 Vehicle Fuel & Oil 1669.48
100-5505-5450 Vehicle Fuel & Oil 746.76
100-5565-5450 Janitorial Supplies 260.88
100-5715-2000 Vehicle Repairs 1679.36
100-5715-4100 Vehicle Repairs 226.46
100-5500-5400 Department Supplies 331.61
100-5500-5450 Department Supplies 157.09
100-5500-5500 Department Supplies 25.79
100-5505-1100 Vehicle Fuel & Oil 60.11
100-5505-2000 Vehicle Fuel & Oil 5746.25
100-5505-2800 Vehicle Fuel & Oil 397.45
100-5265-4000 Miscellaneous Benefits 23.5
100-5265-4100 Miscellaneous Benefits 23.5
100-5265-5400 Miscellaneous Benefits 108.07
100-5500-1500 Department Supplies 30.33
100-5500-3200 Department Supplies 36.76
100-5500-4100 Department Supplies 103.07
100-2410 Parking Fund-State 22.5
100-2460 Sales Tax Payable -115.31
100-5265-1100 Miscellaneous Benefits 23.5
100-5265-1150 Miscellaneous Benefits 23.5
100-5265-1200 Miscellaneous Benefits 43.5
100-5265-2000 Miscellaneous Benefits 275.3
590 - TDA Transit Fund 1259.4
672 - Forest Hill Water Booster Fund 546.95
Grand Total: 96511.6
Account Summary
Account NumberAccount Name Payment Amount
100-1683 Distributed Utilities 3523.93
100-2220 Refundable Park Deposits 950
100-2405 Parking Fund-County 10.5
160 - Riverlodge Fund 2619.69
183 - Every 15 Minute 31.1
189 - Measure Z Fund 453.52
200 - Storm Drainage Fund 772.8
250 - FBID Fund 360
270 - STIP/TEA Fund 14524.26
280 - Gas Tax Fund 4782.98
500 - Water Fund 22288.87
550 - Wastewater Fund 22737.32
Expense Approval Report Payment Dates: 4/1/2024 - 4/3/2024 Report Summary
Fund Summary
Fund Payment Amount
100 - General Fund 25912.18
101 - Transaction and Use Tax Fund 111.19
120 - Development & Building Fund 111.34
4/3/2024 8:10:13 AM Page 5 of 6
550-6505-6600 Utility - General & Electric 2644.84
550-7012-6600 Certification 125
550-7015-6600 Dues & Subscriptions 68.63
590-5265-5000 Miscellaneous Benefits 20
590-5505-5000 Vehicle Fuel & Oil 1545.62
590-5715-5000 Vehicle Repairs -306.22
550-5715-6600 Vehicle Repairs 187.74
550-5720-6500 Equipment Repair 73.77
550-5720-6600 Equipment Repair 55.18
550-6000-6700 Audit Fees 480.5
550-6025-6700 Professional Services 25
550-6205-6700 Cell Phones 5.28
500-7015-6000 Dues & Subscriptions 68.63
550-5500-6600 Department Supplies 1151.12
550-5500-6700 Department Supplies 1116.24
550-5505-6600 Vehicle Fuel & Oil 725.42
550-5555-6600 Plant Chemicals 14545.79
550-5557-6600 Lab Supplies 1532.81
500-5505-6000 Vehicle Fuel & Oil 98.17
500-5505-6100 Vehicle Fuel & Oil 2799.22
500-5715-6100 Vehicle Repairs 224.09
500-5730-6000 Alarm System Maintenance 100.5
500-6000-6300 Audit Fees 480.5
500-6505-6000 Utility - General & Electric 15921.02
280-5505-4200 Vehicle Fuel & Oil 228.35
280-6505-4200 Utility - General & Electric 4492.38
500-5265-6100 Miscellaneous Benefits 60
500-5500-6000 Department Supplies 253.77
500-5500-6100 Department Supplies 1166.73
500-5500-6200 Department Supplies 1116.24
189-5505-2000 Vehicle Fuel & Oil 453.52
200-6618-4310 SWMP Implementation 772.8
250-6025-1800 Professional Services 360
270-6005-9978 Engineering Services 14524.26
280-5265-4200 Miscellaneous Benefits 40
280-5500-4200 Department Supplies 22.25
160-5565-5800 Janitorial Supplies 53.7
160-5706-5800 Equipment Lease 135.63
160-5720-5800 Equipment Repair 1289.91
160-5740-5800 Building Repair and Maintenance 104.15
160-6300-5800 Advertising 675
183-5500-2000 Department Supplies 31.1
120-5500-3000 Department Supplies 8.89
120-5505-3000 Vehicle Fuel & Oil 78.95
160-4330 River Lodge Rental Fees 225
160-5500-5700 Department Supplies 5.41
160-5540-5800 Catering - Food 8.49
160-5547-5800 User Group Linen 122.4
100-7015-2000 Dues & Subscriptions 68.62
100-7015-4100 Dues & Subscriptions 68.63
100-7400-2800 Miranda's Rescue 800
100-7600-3200 Planning Commission 60
101-5505-2000 Vehicle Fuel & Oil 111.19
120-5265-3000 Miscellaneous Benefits 23.5
Expense Approval Report Payment Dates: 4/1/2024 - 4/3/2024 Account Summary
Account NumberAccount Name Payment Amount
100-6505-5600 Utility - General & Electric 192.53
100-7000-1000 Travel, Conferences & Training 201.27
100-7000-2000 Travel, Conferences & Training 345
**None** 96511.6
Grand Total: 96511.6
4/3/2024 8:10:13 AM Page 6 of 6
Expense Approval Report Payment Dates: 4/1/2024 - 4/3/2024 Account Summary
Account NumberAccount Name Payment Amount
672-6505-6515 Utility - General & Electric 546.95
Grand Total: 96511.6
Project Account Summary
Project Account Key Payment Amount
Amount
79004 04/11/2024 AT&T 9011 21515222 9391062010 89.64
4/11/2024 12:47:40 PM Page 1 of 9
79004 04/11/2024 AT&T 9011 21515221 9391062009 93.3
79004 04/11/2024 AT&T 9011 21515221 9391062009 173.26
79004 04/11/2024 AT&T 9011 21515222 9391062010 48.27
79004 04/11/2024 AT&T 9011 21515195 9391061252 255.33
79004 04/11/2024 AT&T 9011 21515196 9391061253 89.75
79004 04/11/2024 AT&T 9011 21515196 9391061253 17.93
79004 04/11/2024 AT&T 9011 21515192 9391061249 40.9
79004 04/11/2024 AT&T 9011 21515193 9391061250 18.48
79004 04/11/2024 AT&T 9011 21515194 9391061251 109.93
79004 04/11/2024 AT&T 9011 21515187 9391061219 28.57
79004 04/11/2024 AT&T 9011 21515188 9391061220 57.15
79004 04/11/2024 AT&T 9011 21515189 9391061221 29.35
79004 04/11/2024 AT&T 9011 21515185 9391061217 29.35
79004 04/11/2024 AT&T 9011 21515186 9391061218 84.94
79004 04/11/2024 AT&T 9011 21515187 9391061219 28.58
79004 04/11/2024 AT&T 9011 21515181 9391061212 29.35
79004 04/11/2024 AT&T 9011 21515182 9391061213 259.58
79004 04/11/2024 AT&T 9011 21515183 9391061214 29.35
79004 04/11/2024 AT&T 9011 215049649 9391062358 64.1
79004 04/11/2024 AT&T 9011 21515177 9391061208 29.35
79004 04/11/2024 AT&T 9011 21515178 9391061209 196.13
79004 04/11/2024 AT&T 9011 21504386 9391061237 101.11
79004 04/11/2024 AT&T 9011 21504387 9391061238 155.55
79004 04/11/2024 AT&T 9011 21504390 9391061243 146.91
79004 04/11/2024 AT&T 9011 21054980 9391082149 365.9
79004 04/11/2024 AT&T 9011 21054980 9391082149 365.89
79004 04/11/2024 AT&T 9011 21504386 9391061237 54.44
79004 04/11/2024 AT&T 9011 21054980 9391082149 2575.89
79004 04/11/2024 AT&T 9011 21054980 9391082149 1002.81
79004 04/11/2024 AT&T 9011 21054980 9391082149 623.37
79004 04/11/2024 AT&T 9011 20908582 9391082149 365.9
79004 04/11/2024 AT&T 9011 20908582 9391082149 365.89
79004 04/11/2024 AT&T 9011 21054980 9391082149 1952.52
79004 04/11/2024 AT&T 9011 20908582 9391082149 2067.89
79004 04/11/2024 AT&T 9011 20908582 9391082149 1002.81
79004 04/11/2024 AT&T 9011 20908582 9391082149 623.37
79004 04/11/2024 AT&T 9011 20763401 9391082149 365.9
79004 04/11/2024 AT&T 9011 20763401 9391082149 365.89
79004 04/11/2024 AT&T 9011 20908582 9391082149 1952.51
79004 04/11/2024 AT&T 9011 20763401 9391082149 3932.16
79004 04/11/2024 AT&T 9011 20763401 9391082149 1002.81
79004 04/11/2024 AT&T 9011 20763401 9391082149 623.37
79004 04/11/2024 AT&T 9011 20610889 9391082149 365.9
79004 04/11/2024 AT&T 9011 20610889 9391082149 365.89
79004 04/11/2024 AT&T 9011 20763401 9391082149 2275.29
79004 04/11/2024 AT&T 9011 20610889 9391082149 3378.66
79004 04/11/2024 AT&T 9011 20610889 9391082149 1002.81
79004 04/11/2024 AT&T 9011 20610889 9391082149 623.37
79002 04/11/2024 ACCESS HUMBOLDT 2122 Planning Comm Televised Meetings FY 23/24 186.9 79003 04/11/2024 ACCURATE DRUG TESTING SERVICES 0009980 Natt DMV Physical 100 79004 04/11/2024 AT&T 9011 20610889 9391082149 1823.61
Expense Approval Report
CITY OF FORTUNA By (None)
Payment Dates 4/11/2024 - 4/11/2024
Payment Number Payment Date Vendor Name Payable Number Description (Item) 79002 04/11/2024 ACCESS HUMBOLDT 2111 Franchise Fees FY 23/24 1057.5 79002 04/11/2024 ACCESS HUMBOLDT 2121 City Council Televised Meetings FY 23/24 93.45 Amount
79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 23.5 79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 164.5 4/11/2024 12:47:40 PM Page 2 of 9
79021 04/11/2024 HALLEY, STEPHANIE 033124 Planning Commission 3.12 & 3.26 60 79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 23.5 79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 23.5 79019 04/11/2024 GHD INC 380-0048397 Mill Creek Habitat Connectivity Project 36602.85 79019 04/11/2024 GHD INC 380-0048807 US 101/12th Street Interchange PA & ED 53285.61 79020 04/11/2024 GROCERY OUTLET 040324 Janitorial Supplies - Parks 56.28 79019 04/11/2024 GHD INC 380-0048168 12th Street Stormwater Enhancement Project 227.62 79019 04/11/2024 GHD INC 380-0048168 12th Street Stormwater Enhancement Project 682.88 79019 04/11/2024 GHD INC 380-0048171 Engineering Services 508.5 79017 04/11/2024 FORTUNA ACE HARDWARE K74225 Supplies - Library/Parks 43.31 79018 04/11/2024 FREEDOM FUEL 20260 Equipment Fuel 27.77 79018 04/11/2024 FREEDOM FUEL 20290 Equipment Fuel 54.02 79017 04/11/2024 FORTUNA ACE HARDWARE K74205 Supplies - Library/Parks 8.81 79017 04/11/2024 FORTUNA ACE HARDWARE K74205 Supplies - Library/Parks 5.41 79017 04/11/2024 FORTUNA ACE HARDWARE K74225 Supplies - Library/Parks 112.82 79017 04/11/2024 FORTUNA ACE HARDWARE 374314 Top Soil - Utilities 19.5 79017 04/11/2024 FORTUNA ACE HARDWARE 374328 Supplies - WWTP 43.31 79017 04/11/2024 FORTUNA ACE HARDWARE 374411 Batteries - River Lodge 17.34 79017 04/11/2024 FORTUNA ACE HARDWARE 374090 Supplies - Parks 48.03 79017 04/11/2024 FORTUNA ACE HARDWARE 374117 Supplies - Parks 21.22 79017 04/11/2024 FORTUNA ACE HARDWARE 374163 Extension Cord - Utilities 97.64 79017 04/11/2024 FORTUNA ACE HARDWARE 374034 Calculator/Batteries - WWTP 60.72 79017 04/11/2024 FORTUNA ACE HARDWARE 374084 Supplies/Tools - Parks 71.54 79017 04/11/2024 FORTUNA ACE HARDWARE 374084 Supplies/Tools - Parks 26.03 79015 04/11/2024 ECO MEDICAL 24598 Medical Waste Disposal 46.18 79016 04/11/2024 FEDEX 8-453-99528 Shipping Services - Lab 131.68 79017 04/11/2024 FORTUNA ACE HARDWARE 373902 Storage Box - Kennel 20.6 79013 04/11/2024 DIKES, BUCKLEY D. 2024-03-024 March K9 Training - Cain/Blitz 254.5 79014 04/11/2024 DIVISION OF THE STATE ARCHITECT 033124 1st Quarter SB1186 280 79014 04/11/2024 DIVISION OF THE STATE ARCHITECT 033124 1st Quarter SB1186 -252 79011 04/11/2024 CALIFORNIA CONSULTING INC 6725 Grant Writing Services 412.5 79012 04/11/2024 DEPARTMENT OF JUSTICE 723702 February BAC Analysis 175 79013 04/11/2024 DIKES, BUCKLEY D. 2024-03-024 March K9 Training - Cain/Blitz 254.5 79009 04/11/2024 BROWN, RUS 2407 CPR & First Aid Training - Parks/River Lodge 300 79009 04/11/2024 BROWN, RUS 2407 CPR & First Aid Training - Parks/River Lodge 200 79010 04/11/2024 BURKE, NICK 033124 Planning Commission 3.12 & 3.26 60 79008 04/11/2024 BENNETT, BRIAN 033124 Planning Commission 3.12 & 3.26 60 79009 04/11/2024 BROWN, RUS 2407 CPR & First Aid Training - Parks/River Lodge 1000 79009 04/11/2024 BROWN, RUS 2407 CPR & First Aid Training - Parks/River Lodge 100 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 301.64 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 386.78 79007 04/11/2024 BAUTISTA, ALICIA 040924 Monday Club Deposit Refund 250 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 210.78 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 4.5 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 45.03 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 91.83 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 371.5 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 1049.24 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 1214.95 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 90.06 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 27.02 79004 04/11/2024 AT&T 9011 21522150 9391061228 77.77
79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 25.03 79006 04/11/2024 AT&T MOBILITY X04092024 Cellular Service 185.05 79004 04/11/2024 AT&T 9011 21515224 9391062012 45.67
79004 04/11/2024 AT&T 9011 21522149 9391061226 155.55
79004 04/11/2024 AT&T 9011 21522150 9391061228 77.78
Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 Payment Number Payment Date Vendor Name Payable Number Description (Item) 79004 04/11/2024 AT&T 9011 21515223 9391062011 58.24
Amount
79048 04/11/2024 NYLEX.NET 14884 Battery Back-up Upgrade - Lab 291.85 4/11/2024 12:47:40 PM Page 3 of 9
79045 04/11/2024 NOR CAL GLOVES 1566854 Latex Gloves - WWTP 154.55 79046 04/11/2024 NORTH COAST JOURNAL 2024127012 Public Hearing Notice - Olea 90 79047 04/11/2024 NORTHCOAST EAC 040924 River Lodge Deposit Refund 250 79043 04/11/2024 NAPA AUTO PARTS FORTUNA 59530 Battery - WWTP 259.27 79043 04/11/2024 NAPA AUTO PARTS FORTUNA 59595 Break Pads - PD 38.07 79044 04/11/2024 NICHOLS, NELEEN 033124 Planning Commission 3.12 & 3.26 60 79041 04/11/2024 MISSION LINEN INDUS SERV 521305686 Latex Gloves - Parks 90.27 79041 04/11/2024 MISSION LINEN INDUS SERV 521316824 Police Mat Service FY 23/24 41.96 79042 04/11/2024 MOBLEY, KRIS 033124 Planning Commission 3.12 & 3.26 60 79041 04/11/2024 MISSION LINEN INDUS SERV 521299473 Wastewater Linen Service 87.28 79041 04/11/2024 MISSION LINEN INDUS SERV 521299483 Parks/Rink Linen Service 84.84 79041 04/11/2024 MISSION LINEN INDUS SERV 521302124 Janitorial Supplies - Parks 108.5 79041 04/11/2024 MISSION LINEN INDUS SERV 521199914 Emblems - General Services 35.81 79041 04/11/2024 MISSION LINEN INDUS SERV 521299472 Corp Yard Linen Service 129.91 79041 04/11/2024 MISSION LINEN INDUS SERV 521299472 Corp Yard Linen Service 52.5 79040 04/11/2024 MENDES SUPPLY INC M260666 01 Trash Can Liners - CH/PD/PW/Parks 74.04 79040 04/11/2024 MENDES SUPPLY INC M260666 01 Trash Can Liners - CH/PD/PW/Parks 74.04 79040 04/11/2024 MENDES SUPPLY INC M261592 Janitorial Supplies - Parks 470.42 79039 04/11/2024 MARK A. HISE MS DDS 040324 River Lodge Deposit Refund 250 79040 04/11/2024 MENDES SUPPLY INC M260666 01 Trash Can Liners - CH/PD/PW/Parks 74.04 79040 04/11/2024 MENDES SUPPLY INC M260666 01 Trash Can Liners - CH/PD/PW/Parks 74.04 79037 04/11/2024 KIMBALL-MIDWEST 102069021 Batteries - Stock 106.64 79038 04/11/2024 LEFT IN STITCHES FPD3 Jacket Patches/Velcro - PD 65 79038 04/11/2024 LEFT IN STITCHES FPD4 Shirt Patches/Hem Pants - PD 45 79037 04/11/2024 KIMBALL-MIDWEST 102069021 Batteries - Stock 106.65 79037 04/11/2024 KIMBALL-MIDWEST 102069021 Batteries - Stock 106.65 79037 04/11/2024 KIMBALL-MIDWEST 102069021 Batteries - Stock 106.65 79035 04/11/2024 JOHNSON, MIKE 040124 Per Diem/Mileage 3.8 - 3.9 (Rdwd Empire Mtg) 202.58 79036 04/11/2024 KEIN, MICHAEL 033124 Planning Commission 3.12 & 3.26 60 79037 04/11/2024 KIMBALL-MIDWEST 102069021 Batteries - Stock 106.65 79032 04/11/2024 INDUSTRIAL CHEM LABS & SERVICES INC 389831 Lift Station Degreaser - WWTP 171.6 79033 04/11/2024 J & G LAWN & GARDEN 39941 Landscape Maintenance - Elizabeth Barcus 1371.53 79034 04/11/2024 JOHNSON, LYNDSEY 040924 River Lodge Deposit Refund 250 79030 04/11/2024 HURST, SHAWNA 040924 River Lodge Deposit Refund 250 79031 04/11/2024 IDEXX DISTRIBUTION, INC 3148529858 Lab Supplies 388.06 79032 04/11/2024 INDUSTRIAL CHEM LABS & SERVICES INC 389831 Lift Station Degreaser - WWTP -10.39 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1163397 Vet Services 15 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1163449 Vet Services 15 79029 04/11/2024 HUMMEL TIRE & WHEEL 275569 Tire Repair Service Call - Utilities 104.88 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1162875 Vet Services 56.33 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1163222 Vet Services 15 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1163269 Vet Services 30 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1161850 Vet Services 97.5 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1161851 Vet Services 36.41 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1162140 Vet Services 30 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1161052 Vet Services 200 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1161343 Vet Services 215 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1161843 Vet Services 60 79027 04/11/2024 HUMBOLDT COUNTY ASSESSOR 030524 Assessor Parcel Map Update 18 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1160838 Vet Services 30 79028 04/11/2024 HUMBOLDT VETERINARY MEDICAL GRP 1160921 Vet Services 214.34 79024 04/11/2024 HOLLAND, DEBORA 040524 Building Permit Overpayment Refund 3.53 79025 04/11/2024 HORIZON BUSINESS PRODUCTS 274134 Pens - WWTP 8.67 79026 04/11/2024 HUMBOLDT BAY COFFEE CO 49134 Coffee - River Lodge 91.5 79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 47 79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 23.5 79023 04/11/2024 HELIX LABORATORIES INC 91184 Magnesium Hydroxide FY 23/24 7459.38 Payment Number Payment Date Vendor Name Payable Number Description (Item) 79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 23.5 79022 04/11/2024 HEALTHSPORT 040124 April Gym Memberships 23.5 Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 Amount
79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 46.11 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 158.67 4/11/2024 12:47:40 PM Page 4 of 9
79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 671.72 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 459.12 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 150 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 249.54 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 547.73 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 11.92 79056 04/11/2024 TRACTOR SUPPLY CREDIT PLA 815350 Kennel Supplies 66.15 79057 04/11/2024 TYLER TECHNOLOGIES INC 25-459712 Utility Online Payment Fees FY 23/24 2510 79057 04/11/2024 TYLER TECHNOLOGIES INC 25-459712 Utility Online Payment Fees FY 23/24 2510 79054 04/11/2024 SEQUOIA CONSTRUCTION SPECIALTIES 2024019 Police Facility Construction 248367.27 79055 04/11/2024 TELSTAR INSTRUMENTS, INC 120929A Lead Gasket - WWTP 248.77 79056 04/11/2024 TRACTOR SUPPLY CREDIT PLA 813980 Kennel Supplies 38.5 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03249729 17524449729 235.41 79053 04/11/2024 PEOPLEFACTS LLC 2024030176 Pre-employment Credit Check 13.68 79054 04/11/2024 SEQUOIA CONSTRUCTION SPECIALTIES 2024019 Police Facility Construction -12418.36 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03248897 65641318897 14.29 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03249507 47733469507 925.82 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03249662 43566719662 159.9 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03248379 51382078379 459.1 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03248481 42737528481 7.84 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03248568 41487528568 637.97 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03246009 33454186009 15.04 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03246230 40689526230 385.79 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03246357 27889626357 26013.33 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03245020 63983385020 48.4 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03245127 43154195127 45.51 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03245284 40654195284 380.14 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03244197 34609744197 537.94 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03244490 91564484490 183.1 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03244560 74193064560 144.73 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03243045 45859733045 97.01 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03243322 79545763322 119.3 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03243881 58771943881 2428.02 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03242716 23664592716 3.58 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03242970 93570722970 39.19 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03242987 61444662987 9.74 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03241965 88771941965 19.89 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03242034 98154202034 620.1 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03242501 10129392501 215.81 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03240906 78346610906 14.99 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03241200 81934311200 112.52 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03241921 41070861921 391.55 79050 04/11/2024 O'REILLY AUTOMOTIVE STORE 233595 Ball Joints - Transit 116.03 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03240527 59188610527 913.46 79051 04/11/2024 PACIFIC GAS & ELECTRIC CO 03240729 95900010729 107.65 79050 04/11/2024 O'REILLY AUTOMOTIVE STORE 232900 Fuel Filter - Engineering 10.04 79050 04/11/2024 O'REILLY AUTOMOTIVE STORE 2329141 Brake Rotor/Pads - Engineering 162.74 79050 04/11/2024 O'REILLY AUTOMOTIVE STORE 233398 Battery - Utilities 174.37 79050 04/11/2024 O'REILLY AUTOMOTIVE STORE 232730 Vehicle Repair - PD 45.44 79050 04/11/2024 O'REILLY AUTOMOTIVE STORE 232896 Credit Seat Cover Return -386.73 79050 04/11/2024 O'REILLY AUTOMOTIVE STORE 232897 Credit Return - General Services -53.17 79049 04/11/2024 OPTIMUM APR24CH CH/PD/PW Internet Service FY 23/24 58.34 79049 04/11/2024 OPTIMUM APR24PO Parks Internet Service FY 23/24 235.76 79049 04/11/2024 OPTIMUM APR24RL River Lodge Internet Service FY 23/24 150 79049 04/11/2024 OPTIMUM APR24CH CH/PD/PW Internet Service FY 23/24 58.34 79049 04/11/2024 OPTIMUM APR24CH CH/PD/PW Internet Service FY 23/24 58.34 79049 04/11/2024 OPTIMUM APR24CH CH/PD/PW Internet Service FY 23/24 58.34 Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 Payment Number Payment Date Vendor Name Payable Number Description (Item) 79048 04/11/2024 NYLEX.NET 14893 E-waste Disposal - Lab 25 Amount
Grand Total: 447338.51
4/11/2024 12:47:40 PM Page 5 of 9
79061 04/11/2024 WOODS PEST CONTROL 1257716 CH/PD Pest Services FY 23/24 44 79061 04/11/2024 WOODS PEST CONTROL 1257716 CH/PD Pest Services FY 23/24 44 79061 04/11/2024 WOODS PEST CONTROL 1257779 Parks Pest Services FY 23/24 150 79060 04/11/2024 US BANK EQUIPMENT FINANCE 525600896 Copier Lease FY 23/24 171.68 79060 04/11/2024 US BANK EQUIPMENT FINANCE 525600896 Copier Lease FY 23/24 66.93 79060 04/11/2024 US BANK EQUIPMENT FINANCE 525600896 Copier Lease FY 23/24 52.38 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 233.75 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 1246.3 79059 04/11/2024 US BANK 7266989 Successor Agency Bond Admin Fee 1900 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 27.98 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 705.25 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 433.86 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 31.98 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 49.5 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 517.02 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 4207.22 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 5.01 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 67.5 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 320.74 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 42.92 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 240.54 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 35 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 720 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 65 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 41.98 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses -236.17 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 14 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 159.78 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 55.3 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 291.28 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 268.29 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 207.21 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 197.95 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 4.99 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 180 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 4.99 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 67.5 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 23.98 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 8 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 212.31 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 3378.4 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 1200 Payment Number Payment Date Vendor Name Payable Number Description (Item) 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 1884.64 79058 04/11/2024 U.S. BANK 032224 March Cal Card Expenses 252.24 Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 100-5740-1500 Building Repair and Maintenance 44
100-5740-2000 Building Repair and Maintenance 44
100-5740-5450 Building Repair and Maintenance 150
100-5900-5450 Tools & Small Equipment 26.03
100-6025-2000 Professional Services 13.68
4/11/2024 12:47:40 PM Page 6 of 9
100-5705-5450 Equipment Maintenance 52.38
100-5715-2000 Vehicle Repairs 190.16
100-5715-4000 Vehicle Repairs 172.78
100-5715-4100 Vehicle Repairs -53.17
100-5715-5450 Vehicle Repairs 106.65
100-5720-4100 Equipment Repair 106.65
100-5500-5450 Department Supplies 2147.06
100-5500-5500 Department Supplies 48.72
100-5505-5450 Vehicle Fuel & Oil 81.79
100-5565-5450 Janitorial Supplies 884.35
100-5705-1500 Equipment Maintenance 171.68
100-5705-2000 Equipment Maintenance 66.93
100-5500-1500 Department Supplies 85.96
100-5500-2000 Department Supplies 855.76
100-5500-2800 Department Supplies 584.37
100-5500-3200 Department Supplies 150
100-5500-4100 Department Supplies 211.83
100-5500-5400 Department Supplies 158.67
100-5265-1200 Miscellaneous Benefits 23.5
100-5265-2000 Miscellaneous Benefits 164.5
100-5265-4000 Miscellaneous Benefits 23.5
100-5265-4100 Miscellaneous Benefits 23.5
100-5265-5400 Miscellaneous Benefits 47
100-5500-1150 Department Supplies 547.73
100-1680 Distributed Office Supplies 249.54
100-1683 Distributed Utilities 721.04
100-1684 Distributed Telephone 468.52
100-2460 Sales Tax Payable -10.39
100-5265-1100 Miscellaneous Benefits 23.5
100-5265-1150 Miscellaneous Benefits 23.5
351 - FEMA Fund 682.88
500 - Water Fund 8451.67
550 - Wastewater Fund 41149.59
590 - TDA Transit Fund 1590.9
671 - Kenwood Meadows Fund 39.19
891 - SA Bond Debt Fund 1900
Grand Total: 447338.5
Account Summary
Account NumberAccount Name Payment Amount
120 - Development & Building Fund 1165.74
125 - ADA Compliance Fund 28
160 - Riverlodge Fund 8822.38
183 - Every 15 Minute 4207.22
210 - Solid Waste Fund 46.18
250 - FBID Fund 50.04
270 - STIP/TEA Fund 53285.61
280 - Gas Tax Fund 388.87
350 - Capital Projects Fund 36602.85
Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 Report Summary
Fund Summary
Fund Payment Amount
100 - General Fund 50584
101 - Transaction and Use Tax Fund 238074.9
105 - Donations Fund 268.5
4/11/2024 12:47:40 PM Page 7 of 9
101-7000-2850 Travel, Conferences & Training 254.5
105-5500-2850 Department Supplies 14
105-7000-2850 Travel, Conferences & Training 254.5
120-4400 Building Permit And Inspection 3.53
120-5265-3000 Miscellaneous Benefits 23.5
120-5500-3000 Department Supplies 35
101-2030 Retention Payable -12418.36
101-5500-9104 Department Supplies -236.17
101-6005-9100 Engineering Services 227.62
101-6015-9104 General Contracting 248367.3
101-6015-9373 General Contracting 1371.53
101-6025-9373 Professional Services 508.5
100-7600-3200 Planning Commission 360
100-7612-1100 Contingency 159.78
100-7612-1800 Contingency - Community Events 55.3
100-7612-2000 Contingency 291.28
100-7616-1000 Televised Meetings 135.43
100-7616-3200 Televised Meetings 186.9
100-7015-5400 Dues & Subscriptions 4.99
100-7220-5400 Summer Fun 268.29
100-7221-5400 Break Camp Program 207.21
100-7230-5400 Skating Program 197.95
100-7400-2800 Miranda's Rescue 490
100-7455-2800 Veterinary Expenses 524.58
100-7000-5400 Travel, Conferences & Training 1000
100-7000-5450 Travel, Conferences & Training 100
100-7015-1100 Dues & Subscriptions 23.98
100-7015-1150 Dues & Subscriptions 8
100-7015-1600 Dues & Subscriptions 4.99
100-7015-2000 Dues & Subscriptions 221.96
100-6600-2000 State Fees 175
100-6710-1400 County Election 252.24
100-7000-1000 Travel, Conferences & Training 414.89
100-7000-2000 Travel, Conferences & Training 3378.4
100-7000-3200 Travel, Conferences & Training 1200
100-7000-4100 Travel, Conferences & Training 67.5
100-6505-2800 Utility - General & Electric 235.41
100-6505-4000 Utility - General & Electric 9.74
100-6505-5400 Utility - General & Electric 391.55
100-6505-5450 Utility - General & Electric 1004.14
100-6505-5500 Utility - General & Electric 144.73
100-6505-5600 Utility - General & Electric 380.14
100-6205-4000 Cell Phones 27.02
100-6205-4100 Cell Phones 91.83
100-6205-5450 Cell Phones 371.5
100-6210-1500 Internet Service 8062.27
100-6210-2000 Internet Service 13062.18
100-6210-5450 Internet Service 4247
100-6200-2000 Telephone 650.2
100-6200-5400 Telephone 468.81
100-6205-1100 Cell Phones 25.03
100-6205-1500 Cell Phones 185.05
100-6205-2000 Cell Phones 1214.95
100-6205-3200 Cell Phones 90.06
Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 Account Summary
Account NumberAccount Name Payment Amount
100-6025-3200 Professional Services 18
100-6025-4000 Professional Services 412.5
100-6025-4100 Professional Services 100
100-6036-1400 Franchise Fees 1057.5
590-5715-5000 Vehicle Repairs 1362.33
4/11/2024 12:47:40 PM Page 8 of 9
550-6060-6700 Bank Fees 2510
550-6200-6500 Telephone 378.25
550-6205-6700 Cell Phones 386.78
550-6210-6700 Internet Service 1521.9
550-6505-6600 Utility - General & Electric 26307.52
550-7000-6600 Travel, Conferences & Training 233.75
550-5557-6600 Lab Supplies 388.06
550-5715-6600 Vehicle Repairs -386.73
550-5720-6500 Equipment Repair 106.64
550-5720-6600 Equipment Repair 876.85
550-5740-6600 Building Repair and Maintenance 433.86
550-6045-6600 Laboratory Services 131.68
500-7000-6000 Travel, Conferences & Training 49.5
500-7000-6100 Travel, Conferences & Training 517.02
550-5500-6500 Department Supplies 97.64
550-5500-6600 Department Supplies 313.12
550-5500-6700 Department Supplies 390.89
550-5555-6600 Plant Chemicals 7459.38
500-5720-6100 Equipment Repair 104.88
500-6060-6300 Bank Fees 2510
500-6200-6100 Telephone 93.45
500-6205-6300 Cell Phones 301.64
500-6210-6300 Internet Service 1521.94
500-6505-6000 Utility - General & Electric 2390.81
500-5500-6000 Department Supplies 69.39
500-5500-6100 Department Supplies 72
500-5500-6300 Department Supplies 31.98
500-5715-6000 Vehicle Repairs 259.27
500-5715-6100 Vehicle Repairs 281.02
500-5720-6000 Equipment Repair 248.77
250-6205-1800 Cell Phones 45.03
270-6005-9112 Engineering Services 53285.61
280-6505-4200 Utility - General & Electric 321.37
280-7000-4200 Travel, Conferences & Training 67.5
350-6025-9123 Professional Services 36602.85
351-6005-9100 Engineering Services 682.88
160-6210-5800 Internet Service 2643.48
160-6505-5800 Utility - General & Electric 3341.48
160-7000-5800 Travel, Conferences & Training 300
183-5500-2000 Department Supplies 4207.22
210-5735-5300 Janitorial Services - HHW 46.18
250-5500-1800 Department Supplies 5.01
160-5500-5800 Department Supplies 338.08
160-5540-5800 Catering - Food 134.42
160-5720-5800 Equipment Repair 240.54
160-6200-5700 Telephone 29.35
160-6200-5800 Telephone 540.53
160-6205-5800 Cell Phones 4.5
120-7000-3000 Travel, Conferences & Training 720
120-7015-3000 Dues & Subscriptions 65
125-2470 SB 1186 State Architect 280
125-4081 SB 1186 Disability Access -252
160-2221 Monday Club Deposits 250
160-2222 River Lodge Deposits 1000
Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 Account Summary
Account NumberAccount Name Payment Amount
120-6200-3000 Telephone 17.93
120-6205-3000 Cell Phones 210.78
120-6300-3100 Advertising 90
4/11/2024 12:47:40 PM Page 9 of 9
671-6505-6510 Utility - General & Electric 39.19
891-6025-8200 Professional Services 1900
Grand Total: 447338.5
Project Account Summary
Project Account Key Payment Amount
**None** 447070
Exp DONATION-K9 268.5
Grand Total: 447338.5
Expense Approval Report Payment Dates: 4/11/2024 - 4/11/2024 Account Summary
Account NumberAccount Name Payment Amount
590-6200-5000 Telephone 28.57
590-7000-5000 Travel, Conferences & Training 200
Consent Item 4k

Page 1 of 2 ends

STAFF REPORT
City Council Consent Item
_______________________________________________________________________________________________ DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THRU: Merritt Perry, City Manager
SUBJECT: Road Maintenance and Rehabilitation Account Project List; Resolution 2024- 09 STAFF RECOMMENDATION:

Adopt Resolution 2024-09 of the City Council of the City of Fortuna designating projects to be funded by the Road Maintenance and Rehabilitation Account (RMRA) during Fiscal Year 2024-25.

EXECUTIVE SUMMARY:

To be eligible for funding from the passage of SB1, the City must formally adopt a list of projects to be completed and forward that list to the California Transportation Commission (CTC) by July 1 st each year. Staff has prepared a list of projects in a format acceptable to the CTC and included it as an attachment.

In order to ensure that RMRA funds are spent appropriately, the City must also report after the fact on which projects were ultimately completed. It is important to note that there is no requirement that the annual list of anticipated projects match the list of projects completed. In the event that additional funding becomes available or if emergency projects arise, the two lists may differ.

Additionally, if during the Cities budget process different projects are identified by the Council as a higher priority than the ones adopted with the attached resolution the City can change the projects with no repercussions.

FINANCIAL IMPACT:

The projects included on the attached list are identified in the draft 2024-25 fiscal year budget through the Capital Improvement Program. If not funded through RMRA these projects would either not be completed or would have to be funded through other funds and other projects would not be completed.

RECOMMENDED COUNCIL ACTION:

Adopt Resolution 2024-09.

Attachments:

Consent Item 4k

Page 2 of 2 ends

1. Resolution 2024-09; A Resolution Of The City Council Of The City Of Fortuna designating projects to be funded by the Road Maintenance and Rehabilitation Account during Fiscal Year 2024-25.

2. Attachment A – RMRA Project List

Page 1 of 2 ends

RESOLUTION NO. 2024-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA

DESIGNATING PROJECTS TO BE FUNDED BY THE ROAD MAINTENANCE AND REHABILITATION ACCOUNT DURING FISCAL YEAR 2024-25
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Fortuna must adopt by resolution a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $320,442 in RMRA funding in Fiscal Year 2024-25 from SB 1; and
WHEREAS, this is the eight year in which the City of Fortuna is receiving SB 1 funding and will enable the City of Fortuna to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City of Fortuna has undergone a robust public process through its Capital Improvement Program to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City of Fortuna used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City of Fortuna maintain and rehabilitate roads that otherwise would not be maintained, add active transportation infrastructure throughout the City of Fortuna this year and hundreds of similar projects into the future; and WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City of Fortuna’s streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits in the City of Fortuna.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fortuna that:

The projects listed in Attachment ‘A’ are hereby adopted as the City’s RMRA funded projects for Fiscal Year 2024-25.

PASSED and ADOPTED on this 15th day of April 2024 by the following vote:

Page 2 of 2 ends

AYES:

NOES:

ABSTAIN:

ABSENT:

Tami Trent, Mayor
Attest:
__________________________________
Siana Emmons, City Clerk
STATE OF CALIFORNIA • CALIFORNIA TRANSPORTATION COMMISSION Senate Bill (SB) 1 Proposed Project List Form
* Required
Type
(Select from dropdown list)
Explanation
(if "Other" is selected,
please explain)
?
PreConstruction
(mm/yyyy)
Construction
(mm/yyyy)
Min. Max.

PP01 5145
Kenmar Road/Blvd Intersection CIP 9997 Road Maintenance & Rehabilitation
Mill and remove failing asphalt concrete. Digouts and resurfacing. On the western side of Kenmar Road, in between Eel River Drive and Fortuna
Boulevard intersection.
06/2023
10/2024 10 20
PP02 5145
Kenmar Road CIP 9997 Road Maintenance &
Rehabilitation
Mill and remove failing asphalt concrete. Digouts and resurfacing. Project area is between CrestView and Mill Creek Way
06/2023 10/2024 10 20
PP03 5145
School Street/Ross Hill CIP 9997 Road Maintenance &
Rehabilitation
Mill and remove failing asphalt concrete. Digouts and resurfacing. Project area is approximately between Thelma and Dana Court.
06/2023 10/2024 10 20
PP04 5145
PP05 5145
PP06 5145
PP07 5145
PP08 5145
PP09 5145
PP10 5145
PP11 5145
PP12 5145
PP13 5145
PP14 5145
PP15 5145
PP16 5145
PP17 5145
PP18 5145
PP19 5145
PP20 5145
PP21 5145
PP22 5145
PP23 5145
PP24 5145
PP25 5145
PP26 5145
PP27 5145
PP28 5145
PP29 5145
PP30 5145
PP31 5145
PP32 5145
PP33 5145
PP34 5145
Le
LoCode
Part 2: Project Information
Local Streets and Roads Program
Proposed
Project
(PP#)
* Project Title Project ID
(if any)
* Project Description
?
* Project Location
?
State
* Estimated
Completion Date
* Estimated
Useful Life
(# of Yr)
Project Type
?
1 of 28
Consent Item 4l

Page 1 of 2 ends

STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Approve Proposed Change to Parks and Recreation Department Organizational Chart
STAFF RECOMMENDATION:

Staff recommends that the City Council approve the proposed change of the current Parks and Recreation Department’s position of Recreation/Transit Administrative Supervisor to Administrative Assistant II. Staff also recommends approving the proposed organizational chart.

EXECUTIVE SUMMARY:

The Parks and Recreation department in under new direction and the recreation programs are under new management as well. After assessing the administrative needs of the department, in conjunction with recent staffing changes, staff is recommending eliminating the Recreation/Transit Administrative Supervisor position and allocating the budgeted salary to an Administrative Assistant II position. The current Fiscal Year 2023-24 full-time pay rate schedule has both positions listed at step no. F23, so this change would fill the currently vacant Recreation/Transit Administrative Supervisor position with an Administrative Assistant II position. It is anticipated that the recreation related function of the previous position will be assigned to the recreation supervisor, such as scheduling and managing adult sports, and administrative functions previously performed by the Recreations supervisor will be delegated to the new administrative position.

Staff believe redirecting the essential functions and services of the Administrative Assistant II will provide the opportunity for a higher degree of administrative support and oversight for the entire department. This change will also include cross training of other staff and will put the City in an improved position for succession planning, as multiple people within the department will be versed on all routine Parks and Recreation administrative functions.

FISCAL IMPACT:

There is no anticipated cost change, as this change would eliminate one position at step no. F23 and add a different position at step no. F23 to the City’s org chart.

RECOMMENDED COUNCIL ACTION:

Approve proposed change to Parks & Recreation Organizational Chart. Consent Agenda vote.

Consent Item 4l

Page 2 of 2 ends

ATTACHMENTS:
 Current Fortuna Organizational Chart
 Proposed Organizational Chart
City of Fortuna
Organizational Chart
Public Works Project
Manager
1 FTE
Assistant City
Engineer II
1 FTE
Residents & Businesses of Fortuna
Mayor & City Council
City Manager City Attorney
Public Works Director
(Department Head)
1 FTE
Laboratory Director
1 FTE
Senior Admin Assistant /
Deputy City Clerk
1 FTE
City Clerk / Human
Resources Manager
(Department Head)
1 FTE
Payroll / Benefits
Administrator
1 FTE
Finance Office
Supervisor
1 FTE
Accounting
Technician
1 FTE
Finance Director
(Department Head)
1 FTE
Account Clerk II
1 FTE
Community Development
Director
(Department Head)
1 FTE
Senior Administrative
Assistant (CDD)
1 FTE
Building Official
1 FTE
Building Inspector
1 FTE
Chief of Police
(Department Head)
1 FTE
Lieutenant
(Division Head)
1 FTE
Sergeant assigned to
Supervise Dispatch
1 FTE
Administrative
Assistant III
1 FTE
Kennel Attendant (PT)
.50 FTE
Parks Maintenance
Worker II
3 FTE
Parks & Rec Director
(Funded by Measure E)
(Department Head)
1 FTE
Museum Curator (PT)
.58 FTE
River Lodge Conference
Center Manager
1 FTE
Conference Center
Coordinator
1 FTE
Conference Center
Worker (PT)
.87 FTE
Parks Maintenance
Worker III
1 FTE
Bus Driver II
1 FTE
Lead Parks
Maintenance Worker
1 FTE
Transit Dispatcher /
Office Assistant (PT)
.51 FTE
WWTP Operator III /
Shift Supervisor
2 FTE
WW Chief Plant Operator
(Division Head)
1 FTE
Utility Maintenance
Worker III
2 FTE
Utility Shift Supervisor
1 FTE
General Services Superintendent (Division Head)
1 FTE
WWTP Operator II
3 FTE
WWTP Operator I /
OIT
2 FTE
City Carpenter III
1 FTE
Vehicle & Equipment
Mechanic
2 FTE
Street Maintenance
Worker III
1 FTE
Street Maintenance
Worker II
4 FTE
Lead Street Maintenance
Worker
1 FTE
Police Officer (Sworn)
9 FTE
Police Officer (Sworn) -
Funded by Measure Z
1 FTE
Sergeant (Sworn)
3 FTE
Police Officer (Sworn) -
Funded by Measure E
3 FTE
Administrative
Assistant (PT)
.73 FTE
Bus Driver I (PT)

1.00 FTE
Code Compliance
Officer (PT) (Funded
by Measure E)
.46 FTE
Police Dispatcher II
5 FTE
Police Dispatcher I
(PT)
.50 FTE
Rec Program Supervisor
(Funded by Measure E)
1 FTE
Recreation Program
Coordinator (PT)
.58 FTE
Recreation Leader
(PT)

4.23 FTE
Field CSO (Funded by
Measure E)
1 FTE
Field CSO (PT)
.73 FTE
Senior Administrative
Assistant (PW)
1 FTE
Parks Maintenance
Worker I (PT)

1.46 FTE
Records Clerk (Funded
by Measure E)
1 FTE
Utility Maintenance
Worker II
3 FTE
Facility Custodian
1 FTE
Fortuna Business
Improvement District
Specialist
.73 FTE
Administrative
Assistant II
1 FTE
City of Fortuna
Organizational Chart
Public Works Project
Manager
1 FTE
Assistant City
Engineer II
1 FTE
Residents & Businesses of Fortuna
Mayor & City Council
City Manager City Attorney
Public Works Director
(Department Head)
1 FTE
Laboratory Director
1 FTE
Senior Admin Assistant /
Deputy City Clerk
1 FTE
City Clerk / Human
Resources Manager
(Department Head)
1 FTE
Payroll / Benefits
Administrator
1 FTE
Finance Office
Supervisor
1 FTE
Accounting
Technician
1 FTE
Finance Director
(Department Head)
1 FTE
Account Clerk II
1 FTE
Community Development
Director
(Department Head)
1 FTE
Planner II
1 FTE
Building Official
1 FTE
Building Inspector
1 FTE
Chief of Police
(Department Head)
1 FTE
Lieutenant
(Division Head)
1 FTE
Sergeant assigned to
Supervise Dispatch
1 FTE
Administrative
Assistant III
1 FTE
Kennel Attendant (PT)
.50 FTE
Parks Maintenance
Worker II
3 FTE
Parks & Rec Director
(Funded by Measure E)
(Department Head)
1 FTE
Museum Curator (PT)
.58 FTE
River Lodge Conference
Center Manager
1 FTE
Conference Center
Coordinator
1 FTE
Conference Center
Worker (PT)
.87 FTE
Parks Maintenance
Worker III
1 FTE
Bus Driver II
1 FTE
Lead Parks
Maintenance Worker
1 FTE
Transit Dispatcher /
Office Assistant (PT)
.51 FTE
Rec / Transit Admin
Supervisor
1 FTE
WWTP Operator III /
Shift Supervisor
2 FTE
WW Chief Plant Operator
(Division Head)
1 FTE
Utility Maintenance
Worker III
2 FTE
Utility Shift Supervisor
1 FTE
General Services Superintendent (Division Head)
1 FTE
WWTP Operator II
3 FTE
WWTP Operator I /
OIT
2 FTE
City Carpenter III
1 FTE
Vehicle & Equipment
Mechanic
2 FTE
Street Maintenance
Worker III
1 FTE
Street Maintenance
Worker II
4 FTE
Lead Street Maintenance
Worker
1 FTE
Police Officer (Sworn)
9 FTE
Police Officer (Sworn) -
Funded by Measure Z
1 FTE
Sergeant (Sworn)
3 FTE
Police Officer (Sworn) -
Funded by Measure E
3 FTE
Administrative
Assistant (PT)
.73 FTE
Bus Driver I (PT)

4.23 FTE
Field CSO (Funded by
Measure E)
1 FTE
Field CSO (PT)
.73 FTE
Senior Administrative
Assistant (PW)
1 FTE
Parks Maintenance
Worker I (PT)

1.46 FTE
Records Clerk (Funded
by Measure E)
1 FTE
Utility Maintenance
Worker II
3 FTE
Facility Custodian
1 FTE
Fortuna Business
Improvement District
Specialist
.73 FTE
Consent Item 4m

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STAFF REPORT
City Council Consent Item
DATE: April 15, 2024
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, 2023 STAFF RECOMMENDATION:

Receive and file the City of Fortuna’s Basic Financial Statements Audit Report for the year ended June 30, 2023.

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, 2023. 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, business-type activities, each major fund, and the aggregate remaining fund information of the City of Fortuna, as of June 30, 2023, and the respective changes in financial position and where applicable, cash flows thereof, 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 4, and a statistical section, which can be found starting on page 64.

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.

Consent Item 4m

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RECOMMENDED COUNCIL ACTION:

Receive and file the City of Fortuna’s Comprehensive Annual Financial Report for the year ended June 30, 2023. Consent Agenda Vote.

ATTACHMENTS:

A. City of Fortuna Basic Financial Statements Audit Report for the year ended June 30, 2023

-
-

1701 NOVATO BLVD, SUITE 302 NOVATO, CA 94947
PH. (415) 457-1215
FAX. (415) 457-6735
www.maocpa.com

Business Item 5a

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STAFF REPORT
City Council Business Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Approve Supplemental Budget Request for Additional Professional Services for Maintenance and Improvements to Fortuna Monday Club STAFF RECOMMENDATION:

Approve a supplemental Budget request in the amount of $6,000 for improvements at the Fortuna Monday Club and authorize the City Manager to negotiate and execute a sole source contract for Professional Services for the conceptual design of the City owned lot at 624 Main Street.

EXECUTIVE SUMMARY:

The Monday Club sustained substantial damage from the two earthquakes in December 2022 and January 2023. The City filed a claim with CIRA, the City’s risk pool in January of 2023, and on October 11, 2023 received payment of $56,717.59.

On November 6, 2023, the City Council approved a supplemental budget request for the design of the repair of the chimney in the amount of $10,000 with Allen-Atelier Architects to design the repairs to the Monday Club Chimney. The design of the chimney is nearly complete and we are awaiting the final engineering details to complete that portion of the project. It was originally anticipated that Allen-Atelier Architects would provide the engineering details necessary but staff now anticipated using Whitchurch Engineering to provide those services under the City’s on-call contract.

There is additional work that it may be prudent to complete as a part of the project given that the City will be bidding the work. The additional work that staff would like to include in the design includes:
 Plan for the repainting of the three sides of the building that were not repainted after the fire on the adjacent lot. The paint is in extremely poor condition (peeling and cracking) on three sides of the building. Lead abatement will be necessary for the spot repairs around the chimney, and typically contractors that do that work come from out of the area and have a high mobilization cost. It makes sense to abate the lead on the remainder of the building that needs to be repainted and repaint those sides as a part of the project to avoid future mobilization costs to abate lead and repaint the other portions of the building in the future.  Develop interior modernization plan including a lighting plan specification, and specifications for new blinds and paint for the interior of the building. The purpose is to improve use of the building for a wider range of uses. Currently the lighting is extremely outdated and does not lend itself for the range of uses needed. The blinds are also very old and not all of them are working.  Develop a conceptual plan for the outdoor space on the newly acquired adjacent lot at 624 Main Street. This will allow staff to identify maintenance and Business Item 5a

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improvement projects for use of the space, and develop budget estimates for the future work. This work may be done by Allen-Atelier Architects or negotiated with another independent architect.

The table below provides a summary of the tasks being requested, the proposed budget and consultant responsible for the work:

Task Consultant Approved
Budget
Additional Amount
Requested
Develop Chimney
Repair Architectural
Details
Allen-Atelier Architects $7,500 $0
Interior Modernization
(great room only)
Allen-Atelier Architects $0 $2,500
Engineering for
Chimney Design
Whitchurch Engineering $2,500 $0
624 Main Conceptual
Design
Undetermined $0 $3,500
Total $10,000 $6,000
FINANCIAL IMPACT:

It is anticipated that the cost of the design of the Monday Club Chimney replacement will be approximately $10,000. The City has received a payment from CIRA, our risk pool for, $56,717.59 for the damage caused to the Monday Club. If $10,000 is used for design, $46,717.69 will remain to fund the construction of the repairs. It is unknown at this time what the cost of the repairs will be.

The additional funding for the interior modernization and conceptual design for the adjacent lot will come from the City’s General Fund. The City Council previously authorized $160,000 for the purchase of the vacant lot at 624 Main Street and the actual cost of the purchase was $148,884.18, which is approximately $11,000 below the anticipated amount approved by council. There are sufficient funds in the City’s general fund to fund this portion of the design. A supplemental budget request with the proposed changes is attached.

RECOMMENDED COUNCIL ACTION:

1. Receive staff report and review Council questions with staff

2. Open Public Comments

3. Close Public Comments

4. Approve a supplemental Budget request in the amount of $6,000 for improvements at the Fortuna Monday Club and authorize the City Manager to negotiate and execute a sole source contract for Professional Services for the conceptual design of the City owned lot at 624 Main Street. Voice Vote.

ATTACHMENTS:
 Attachment A – Supplemental Budget Request
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 Item 5b

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STAFF REPORT
City Council Business Item
DATE: April 15, 2024
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Authorize City Manager to Execute Clean California Grant Agreements for the North Main Gateway Project
STAFF RECOMMENDATION:

Authorize the City Manager to execute a Clean California grant agreement with the California Department of Transportation (Caltrans) for the North Main Street Gateway Project and approve other related agreements.

EXECUTIVE SUMMARY:

There have been several requests from the public over the past several years to develop beautification improvements on the median islands at north Main Street and the intersection of the Highway 101 on and off ramps at that location. The public, including by the City’s former police chief, as part of a leadership groups effort to beautify that area, has presented past ideas to the Council.

Staff learned of potential funding from Caltrans through the Clean California Grant Program (CleanCA) to make beautification improvements at that location last year, and worked with a landscape architect at Caltrans to develop concepts and a cost estimate for a project at that location.

The basic idea behind the project is to remove the interior concrete of the median islands (and leave the existing curb) and install landscaping, decorative concrete, plantings and either a gateway sign or art pedestal and art piece at that location. The intention of the project is to give that area a sense of place and incorporate features that announce a gateway to the City. The concepts developed are preliminary and were developed to define some of the options and to be able to estimate the cost of the project. The three options developed include one option with an art sculpture, another focused on plantings and a third with a gateway sign. Currently, staff does not have a preferred concept.

Construction estimates were developed for the project that ranged from $100,000 for a very basic project with City forces completing some tasks to $270,000 for more elaborate projects with expensive art works. Ultimately, the cost of the project will depend on the design and will be established to meet the budget available for the project.

Following the development of the design concepts for the gateway improvements, Caltrans was not able to commit to funding the project at that time. Staff was recently informed by Caltrans that they would be able to fund the project with at least $100,000 and potentially as much as $150,000.

Caltrans also agreed to have their landscape architect, Erin Ponte, complete the design for the project. Ms. Ponte also worked for the City prior to going to work for Caltrans on several other projects including the Newburg Park Expansion, the Rohner Park Basketball Court Project, and the Riverfront Park Conceptual Design.

Business Item 5b

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Caltrans would like the City to complete the project prior to the end of September. This is an aggressive timeline and would require work to be done by City staff including:
 Participating in the design of the project and coordinate and lead public meetings  Complete the environmental documentation for the project (notice of exemption expected)  Bid construction contract (negotiation and informal bidding may be required due to short timeline for project completion)
 Manage Construction Project
 Closeout project and grant
Caltrans provided the City with a draft grant agreement for the project as well as a draft agreement for the long-term maintenance of the project, as well as a draft maintenance agreement for any gateway features. The City would seek to develop a project with relatively low maintenance requirements and has consulted with our parks maintenance lead who is supportive of the project.

The City Attorney has not yet reviewed these agreements but will be requested to review and provide any suggested changes prior to the agreements being finalized. A copy of each of the draft agreements are attached.

Staff would like to proceed with this project to develop a gateway beautification project at that location and develop the project to the maximum budget available from Caltrans. If approved staff will bring the final concept back to council for approval with a recommendation to award a construction contract prior to proceeding with the project.

The current request is that the council authorize the City Manager to execute the grant agreement and any related agreements, and proceed with the development of the project.

FINANCIAL IMPACT:

There will not be a direct cost to the City for the development of the project other than dedication of staff time. It is expected that construction of the project will be funded entirely with Clean CA grant funds with the exception of any work done by City forces. The final construction budget will be developed during the project and brought to the council for approval prior to construction.

RECOMMENDED COUNCIL ACTION:

1. Receive staff report and review Council questions with staff

2. Open Public Comments

3. Close Public Comments

4. Authorize the City Manager to execute a Clean California grant agreement with the California Department of Transportation (Caltrans) for the North Main Street Gateway Project and approve other related agreements. Voice Vote.

ATTACHMENTS:
 Attachment A – Clean CA Design Concepts
 Attachment B –Draft Grant Funding Agreement
 Attachment C – Draft Landscape Maintenance Agreement
 Attachment D - Draft Art Maintenance Agreement

SCULPTURE OPTION

PLANTING OPTION

STAMPED CONCRETE

AND/OR LANDSCAPING

SCULPTURE/MONUMENT LOCATION

LOW MAINTENANCE &DROUGHT TOLERANTPLANTINGS

PAVING EXAMPLESCULPTURE EXAMPLELOW BOULDER EXAMPLESIGNAGE EXAMPLE

LANDSCAPE BOULDERSWITH COBBLE MULCH

FORTUNA GATEWAY PROJECT - CONCEPTUAL DESIGN
JUNE 2023
Last Update: March 5, 2024 01-HUM-101-64.56
EA: 01-0N500
Project ID: 0124000049
Agreement No. 01-0435

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TRANSPORTATION ART AGREEMENT
Clean California Beautification Fund Contribution
This AGREEMENT, executed on and effective from __________________, is between the State of California, acting through its Department of Transportation, referred to as CALTRANS, and:

City of Fortuna, a body politic and municipal corporation or chartered city of the State of California, referred to hereinafter as CITY.

RECITALS

1. PARTIES are authorized to enter into a cooperative agreement for improvements to the State Highway System per the California Streets and Highways Code, Section 114.

2. CALTRANS is authorized per the California Streets and Highways Code, Section 91.42 to expend Clean California State Beautification Program of 2021 funds (FUNDS) towards beautifying and cleaning up state highways and eligible projects towards that goal.

3. Transportation Art includes graphic or sculptural artwork, either freestanding or placed upon a required engineered transportation feature located on CALTRANS’ right-of-way (such as a noise barrier, retaining wall, bridge, bridge abutment, bridge rail, or slope paving) that expresses unique attributes of a community’s history, resources, or character.

4. CALTRANS intends to provide funding to CITY, and CITY agrees to procure artist(s), administer artist contracts, provide and install the Transportation Art Project that includes refurbishing two existing concrete islands near the highway onramp and offramp in the City of Fortuna. Work would include removing the existing concrete and replacing it with landscaping (drought tolerant plants and bushes), hardscape, and a form of artwork/monument, within the curbs of the two existing concrete islands near the highway 101 onramp and offramp in the City of Fortuna, hereinafter referred to as PROJECT.

5. The term AGREEMENT, as used herein, includes any attachments, exhibits, and amendments.

6. CITY shall obtain an encroachment permit from CALTRANS prior to the commencement of any PROJECT work within CALTRANS’ right-of-way.

7. CITY will follow the CALTRANS encroachment permit requirements for any and all PROJECT work within CALTRANS’ right-of-way, including by not limited to, installation of artwork.

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8. CALTRANS will pay CITY an amount not to exceed $100,000 from FUNDS required for PROJECT.

9. CALTRANS and CITY hereby set forth the terms, covenants, and conditions for CALTRANS’ contribution toward PROJECT.

10. CITY is responsible for completing all work for PROJECT.

11. CITY shall adhere to the CALTRANS’ Transportation Art requirements as set forth in CALTRANS’ Project Development Procedures Manual (PDPM), Chapter 29, Section 9, Transportation Art and CALTRANS’ Transportation Art website at https://dot.ca.gov/programs/design/lap-landscape-architecture-and-communitylivability/lap-liv-j-transportation-art. This includes, but is not limited to, submittal of a Transportation Art Proposal (TAP) to CALTRANS, execution of an Assignment and Transfer of Copyright and Waiver of Moral Rights in Artwork Agreement (Caltrans Copyright Assignment, CCA), and Project Specific Maintenance Agreement (PSMA).

INSTRUCTION: Use the following article if the Gateway Monument is an art feature or has art attached to it. Remove the following article if there is no Gateway Monument or if the Gateway Monument is not an art feature or does not have art attached to it.

12. CITY shall adhere to the CALTRANS’ Gateway Monument requirements as set forth in CALTRANS’ Project Development Procedures Manual (PDPM), Chapter 29, Section 11, Gateway Monument and CALTRANS’ website at https://dot.ca.gov/-/media/dotmedia/programs/design/documents/pdpm-chapter29-a11y.pdf

13. CITY agrees that before commencing any PROJECT work on CALTRANS right-of-way, LOCAL AGENCY and CALTRANS will enter into a PSMA for maintenance of the PROJECT. PARTIES agree that no encroachment permit(s) will be issued by CALTRANS for PROJECT until the PSMA is fully executed.

INVOICE & PAYMENT

14. CITY will invoice, no more frequently than monthly, and CALTRANS will reimburse for actual costs incurred and paid towards PROJECT.

15. CALTRANS will pay CITY within 45 (forty-five) calendar days of receipt of invoices.

16. CALTRANS and CITY agree that the total amount of FUNDS paid out to CITY will not exceed $100,000.

17. After CALTRANS and CITY agree that all work for PROJECT is complete, CITY will submit a final accounting for all costs. Based on the final accounting, CITY will refund or invoice as necessary in order to satisfy the financial commitment of AGREEMENT.

GENERAL CONDITIONS

18. All portions of this AGREEMENT, including the Recitals section, are enforceable.

Last Update: March 5, 2024 Agreement No. 01-0435

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19. All CALTRANS’ obligations and commitments under the terms of AGREEMENT are subject to the appropriation of resources by the Legislature and the State Budget Act authority.

20. Notwithstanding the terms of this AGREEMENT, PARTIES agree to abide by the funding guidelines for all contributed funds that are programmed and allocated by the CTC.

21. If CITY fails to complete the PROJECT for any reason, CITY shall, at CITY’s expense, return CALTRANS right-of-way to its original condition or to a safe and operable condition acceptable to CALTRANS. If CITY fails to do so, CALTRANS reserves the right to finish the work or place the PROJECT in a safe and operable condition.

CALTRANS will bill CITY for all expenses incurred and CITY agrees to pay said bill within forty-five (45) days of receipt.

22. HM-1 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law, whether it is disturbed by the PROJECT or not.

HM-2 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law only if disturbed by the PROJECT.

The management activities related to HM-1 and HM-2, including and without limitation, any necessary manifest requirements and disposal facility designations are referred to herein as HM-1 MANAGEMENT and HM-2 MANAGEMENT respectively.

23. If HM-1 or HM-2 is found during PROJECT work, CITY will immediately notify CALTRANS.

24. CALTRANS, independent of PROJECT, is responsible for any HM-1 found within the existing CALTRANS right-of-way. CALTRANS will undertake, or cause to be undertaken, HM-1 MANAGEMENT with minimum impact to PROJECT schedule.

CALTRANS, independent of PROJECT will pay, or cause to be paid, the cost of HM-1 MANAGEMENT related to HM-1 found within the existing CALTRANS right-of-way.

25. CITY, independent of PROJECT, is responsible for any HM-1 found within PROJECT limits and outside the existing CALTRANS right-of-way. CITY will undertake or cause to be undertaken HM-1 MANAGEMENT with minimum impact to PROJECT schedule.

CITY, independent of the PROJECT, will pay, or cause to be paid, the cost for HM-1 MANAGEMENT for HM-1 found within PROJECT limits and outside of the existing CALTRANS right-of-way.

26. CITY is responsible for HM-2 MANAGEMENT within the PROJECT limits.

27. HM-2 MANAGEMENT costs are PROJECT costs.

Last Update: March 5, 2024 Agreement No. 01-0435

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28. CALTRANS and CITY will enter into a TAMA before PROJECT work is performed within CALTRANS right-of-way. CITY understands and acknowledges the terms of the TAMA will include, but are not limited to, CITY shall be responsible for all regular and emergency maintenance, repair, and replacement of the PROJECT at the LOCAL AGENCY’s expense for as long as the artwork remains in place. A sample template TAMA is attached as EXHIBIT (A).

29. The TAMA will include indemnification provisions for anything done or omitted to be done by CITY under or in connection with PROJECT.

30. Neither CITY nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon CALTRANS under AGREEMENT. It is understood and agreed that CALTRANS, to the extent permitted by law, will defend, indemnify, and save harmless CITY and all of its officers and employees from all claims, suits, or actions, including reasonable attorneys’ fees, of every name, kind, and description, brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under AGREEMENT.

31. Neither CALTRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CITY, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon CITY under AGREEMENT. It is understood and agreed that CITY, to the extent permitted by law, will defend, indemnify, and save harmless CALTRANS and all of its officers and employees from all claims, suits, or actions, including reasonable attorneys’ fees, of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, claims based on (1) 17 U.S.C. §§ 101-810 (the Copyright Act of 1976, as modified), (2) 17 U.S.C. § 106A(a) (the Visual Artists Rights Act of 1990, “VARA”), (3) 17 U.S.C. § 113, (4) California Civil Code § 987 (the California Art Preservation Act), California Civil Code §989, or (5) any other rights arising under U.S. federal or state laws or under the laws of any other country that conveys rights and protections of the same nature as those conveyed under 17 U.S.C. §106A(a) and California Civil Code §987, intellectual property claims arising from or related to breach of contract, inverse condemnation, conversion, and/or taking of property, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CITY, its contractors, subcontractors, and/or its agents under AGREEMENT.

Last Update: March 5, 2024 Agreement No. 01-0435

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32. If the work performed on PROJECT is done under contract and falls within the Labor Code section 1720(a)(1) definition of "public works" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code section 1771 CITY must conform to the provisions of Labor Code sections 1720 through 1815, and all applicable provisions of California Code of Regulations found in Title 8, Chapter 8, Subchapter 3, Articles 1-7. CITY agrees to include prevailing wage requirements in its contracts for public work. Work performed by CITY's own forces is exempt from the Labor Code's Prevailing Wage requirements.

CITY shall require its contractors to include prevailing wage requirements in all subcontracts funded by AGREEMENT when the work to be performed by the subcontractor is "public works" as defined in Labor Code Section 1720(a)(1) and Labor Code Section 1771. Subcontracts shall include all prevailing wage requirements set forth in CITY contracts.

33. AGREEMENT is intended to be CALTRANS’ and CITY’s final expression and supersedes all prior oral understandings pertaining to PROJECT, with the exception of the required agreements to complete CALTRANS’ Transportation Art process as discussed herein. The required agreements include, but are not limited to, the TAP, CCA, and PSMA.

34. AGREEMENT will terminate upon CALTRANS’ acceptance of PROJECT. However, all indemnification and maintenance articles of AGREEMENT will remain in effect until terminated or modified in writing by mutual agreement.

Last Update: March 5, 2024 Agreement No. 01-0435

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CONTACT INFORMATION
CALTRANS and CITY will notify each other in writing of any personnel or location changes.

Contact information changes do not require an amendment to AGREEMENT.

CALTRANS
Julia Peterson, Project Manager
1656 Union Street
Eureka, CA 95501
Office Phone: (707) 497-9027
Mobile Phone: (707) 497-9027
[email protected]
CITY of FORTUNA
Merritt Perry, City Manager
621 11th Street
Fortuna, CA 95540
Office Phone: (707) 725-1410
[email protected]
Last Update: March 5, 2024 Agreement No. 01-0435

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SIGNATURES
PARTIES are authorized to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and hereby covenants to have followed all the necessary legal requirements to validly execute this AGREEMENT. By signing below, the PARTIES each expressly agree to execute this AGREEMENT electronically.

The PARTIES acknowledge that executed copies of this AGREEMENT may be exchanged by facsimile or email, and that such copies shall be deemed to be effective as originals.

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
Matthew K. Brady
District 1 Director

VERIFICATION OF FUNDS &
AUTHORITY:

District Project Control Officer
Deputy Attorney
Department of Transportation

CERTIFIED AS TO FINANICAL TERMS &
POLICIES:
_
Nadine Karavan
HQ Accounting Supervisor

CITY OF FORTUNA
Merrit Perry
City Manager
ATTEST:
[Title]
Attorney [or Counsel]
Draft date
add identification number or description
1 LANDSCAPE MAINTENANCE AGREEMENT
WITH THE CITY/COUNTY OF ________
THIS AGREEMENT is made effective this ______ day of ____________, 20__, by and between the State of California, acting by and through the Department of Transportation, hereinafter referred to as “STATE” and the CITY/COUNTY of __________; hereinafter referred to as “CITY/COUNTY” and collectively referred to as “PARTIES.”

1. The PARTIES hereto mutually desire to identify the maintenance responsibilities of CITY/COUNTY for newly constructed or revised improvements within STATE’s right of way by Cooperative Agreement(s)1 number __________ dated ______, [And/Or]2 Permit Number(s) _____________________.

2. This Agreement addresses CITY/COUNTY responsibility for the 3_____________________ (collectively the “LANDSCAPING”) placed within State Highway right of way on State Route _____, as shown on Exhibit A, attached to and made a part of this Agreement.

3. Maintenance responsibilities that include, but are not limited to, inspection, providing emergency repair, replacement, and maintenance, (collectively hereinafter “MAINTAIN/MAINTENANCE”) of LANDSCAPING as shown on said Exhibit “A.”

4. The degree or extent of maintenance work to be performed, and the standards, therefore, shall be in accordance with the provisions of Section 27 of the Streets and Highways Code and the then current edition of the State Maintenance Manual.

5. When a planned future improvement is constructed and/or a minor revision has been effected with STATE’s consent or initiation within the limits of the STATE’s right of way herein described which affects PARTIES’ division of maintenance responsibility as described herein, PARTIES will agree upon and execute a new dated and revised Exhibit “A” which will be made a part hereof and will thereafter

1 Reference to an Encroachment Permit is acceptable if co-op was not used, delete and replace as needed including the footnote.
2 Alternative text delete if not needed
3 List pertinent items, list can include, but is not limited to, landscaping, planting, irrigation systems, hardscaping (Define Hardscaping) mulches, control, litter and weed removal, Biofiltration Swales, Linear Radial Gross Solid Removal Devices, sidewalks, bike paths, and parking restriction signs.

If there are different MAINTENANCE responsibilities for each of the items in the list, group them together and name each group, e.g., LANDSCAPING, IMPROVEMENTS, SYSTEM, etc. Once they are defined as named “collectively”, you do not refer to them individually again. Delete footnote before sending to locals.

Draft date
add identification number or description
2 supersede the attached original Exhibit “A” to thereafter become a part of this Agreement.

5.1. The new exhibit can be executed only upon written consent of the PARTIES hereto acting by and through their authorized representatives. No formal amendment to this Agreement will be required.

6. CITY/COUNTY agrees, at CITY/COUNTY expense, to do the following:

6.1. CITY will MAINTAIN or have authorized licensed contractor with appropriate class of license in the State of California, to MAINTAIN LANDSCAPING conforming to those plans and specifications (PS&E) pre-approved by STATE.

CITY will have in place a valid necessary encroachment permits prior to the start of any work within STATE’S right of way.

6.1.1. An Encroachment Permit rider may be required for any changes to the scope of work allowed by this Agreement prior to the start of any work within STATE's right of way

6.2. CITY/COUNTY shall ensure that LANDSCAPED areas designated on Exhibit “A” are provided with adequate scheduled routine MAINTENANCE necessary to MAINTAIN a neat and attractive appearance including providing for water, and fertilizer necessary to sustain healthy plant growth during the entire life of this Agreement.

6.2.1. To prune shrubs, tree plantings, and trees to control extraneous growth and ensure STATE standard lines of sight to signs and corner sight distances are always maintained for the safety of the public.

6.2.2. To replace unhealthy or dead plantings when observed or within 30 days when notified in writing by STATE that plant replacement is required.

6.2.3. To expeditiously MAINTAIN, replace, repair or remove from service any components of LANDSCAPING system that has become unsafe or unsightly.

6.3. To furnish electricity for irrigation system controls, and lighting system controls for all street lighting systems installed by CITY/COUNTY.

6.4. To MAINTAIN, repair and operate the irrigation systems in a manner that prevents water from flooding or spraying onto STATE highway, spraying parked and moving automobiles, spraying pedestrians on public sidewalks/bike paths, or leaving surface water that becomes a hazard to vehicular or pedestrian/bicyclist travel.

Draft date
add identification number or description
3 6.5. To control weeds at a level acceptable to the STATE. Any weed control performed by chemical weed sprays (herbicides) shall comply with all laws, rules, and regulations established by the California Department of Food and Agriculture. All chemical spray operations shall be reported quarterly (Form LA17) to the STATE to: District___ Maintenance at4 ____________.

6.6. CITY/COUNTY shall ensure LANDSCAPING within the Agreement limits provide an acceptable walking and riding surface, and will provide for the repair and removal of dirt, debris, graffiti, weeds, and any deleterious item or material on or about the LANDSCAPING in an expeditious manner.

6.7. To MAINTAIN all parking or use restrictions signs encompassed within the area of the LANDSCAPING.

6.8. To remove LANDSCAPING and appurtenances and restore STATE owned areas to a safe and attractive condition acceptable to STATE in the event this Agreement is terminated as set forth herein.

7. STATE may provide CITY/COUNTY with timely written notice of unsatisfactory conditions that require correction by the CITY/COUNTY. However, the non-receipt of notice does not excuse CITY/COUNTY from maintenance responsibilities assumed under this Agreement.

8. STATE shall Issue encroachment permits to CITY/COUNTY at no cost to it.

9. LEGAL RELATIONS AND RESPONSIBILITIES:

9.1.Nothing within the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not party to this Agreement, or affect the legal liability of either PARTY to this Agreement by imposing any standard of care respecting the design, construction and maintenance of these STATE highway improvements or CITY/COUNTY facilities different from the standard of care imposed by law.

9.2. If during the term of this Agreement, CITY/COUNTY should cease to MAINTAIN the LANDSCAPING to the satisfaction of STATE as provided by this Agreement, STATE may either undertake to perform that MAINTENANCE on behalf of CITY/COUNTY at CITY/COUNTY’s expense or direct CITY/COUNTY to remove or itself remove LANDSCAPING at CITY/COUNTY’s sole expense and restore STATE’s right of way to its prior or a safe operable condition. CITY/COUNTY

4 Insert mailing address or email, etc., delete footnote before sending to local agency Draft date
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4 hereby agrees to pay said STATE expenses, within thirty (30) days of receipt of billing by STATE. However, prior to STATE performing any MAINTENANCE or removing LANDSCAPING, STATE will provide written notice to CITY/COUNTY to cure the default and CITY/COUNTY will have thirty (30) days within which to affect that cure.

9.3.Neither CITY/COUNTY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE under or in connection with any work, authority or jurisdiction arising under this Agreement. It is understood and agreed that STATE shall fully defend, indemnify and save harmless CITY/COUNTY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this Agreement with the exception of those actions of STATE necessary to cure a noticed default on the part of CITY/COUNTY.

9.4.Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by CITY/COUNTY under or in connection with any work, authority or jurisdiction arising under this Agreement. It is understood and agreed that CITY/COUNTY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by CITY/COUNTY under this Agreement.

9.5.PREVAILING WAGES:

9.5.1. Labor Code Compliance- If the work performed under this Agreement is done under contract and falls within the Labor Code section 1720(a)(1) definition of a "public works" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code section 1771. CITY/COUNTY must conform to the provisions of Labor Code sections 1720 through 1815, and all applicable provisions of California Code of Regulations found in Title 8, Chapter 8, Subchapter 3, Articles 1-7. CITY/COUNTY agrees to include prevailing wage requirements in its contracts for public works. Work performed by CITY/COUNTY'S own forces is exempt from the Labor Code's Prevailing Wage requirements.

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5 9.5.2.Requirements in Subcontracts - CITY/COUNTY shall require its contractors to include prevailing wage requirements in all subcontracts when the work to be performed by the subcontractor under this Agreement is a "public works" as defined in Labor Code Section 1720(a)(1) and Labor Code Section 1771. Subcontracts shall include all prevailing wage requirements set forth in CITY/COUNTY's contracts.

10.INSURANCE5 - CITY/COUNTY and its contractors shall maintain in force, during the term of this agreement, a policy of general liability insurance, including coverage of bodily injury liability and property damage liability, naming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certificate of insurance in a form satisfactory to the STATE that shall be delivered to the STATE with a signed copy of this Agreement.

10.1. SELF-INSURED6 - CITY/COUNTY is self-insured. CITY/COUNTY agrees to deliver evidence of self-insured coverage providing general liability insurance, coverage of bodily injury liability and property damage liability, naming STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certification of selfinsurance letter (“Letter of Self-Insurance”), satisfactory to STATE, certifying that CITY/COUNTY meets the coverage requirements of this section. This Letter of Self-Insurance shall also identify the _____________ location as depicted in EXHIBIT A. CITY/COUNTY shall deliver to STATE the Letter of SelfInsurance with a signed copy of this AGREEMENT. A copy of the executed Letter of Self-Insurance shall be attached hereto and incorporate as Exhibit B.

10.2. SELF-INSURED7 using Contractor - If the work performed under this AGREEMENT is done by CITY/COUNTY‘s contractor(s), CITY/COUNTY shall require its contractor(s) to maintain in force, during the term of this AGREEMENT, a policy of general liability insurance, including coverage of bodily injury liability and property damage liability, naming STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess.

Coverage shall be evidenced by a certificate of insurance in a form satisfactory to the STATE that shall be delivered to the STATE with a signed copy of this Agreement.

5 Delete if self-insured
6 Delete if not self-insured
7 Delete if not self-insured
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6 11. TERMINATION - This Agreement may be terminated by timely mutual written consent by PARTIES, and CITY/COUNTY’s failure to comply with the provisions of this Agreement may be grounds for a Notice of Termination by STATE.

12. TERM OF AGREEMENT -This Agreement shall become effective on the date first shown on its face sheet and shall remain in full force and effect until amended or terminated at any time upon mutual consent of the PARTIES or until terminated by STATE for cause.

PARTIES are empowered by Streets and Highways Code Section 114 & 130 to enter into this Agreement and have delegated to the undersigned the authority to execute this Agreement on behalf of the respective agencies and covenants to have followed all the necessary legal requirements to validly execute this Agreement.

IN WITNESS WHEREOF, the PARTIES hereto have set their hands and seals the day and year first above written.

THE CITY/COUNTY OF STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
By: __________________________
Mayor/Chairmen
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7 Initiated and Approved
By: ___________________________
City/County Manager
By: ___________________________
Deputy District Director
Maintenance District
ATTEST:

By: __________________________
City/County Clerk
By: __________________________
City/County Attorney

EXHIBIT A
1 (Plan map identifying the applicable STATE Routes (Freeway proper) and CITY/COUNTY road(s) and facilities)
EXHIBIT B – LETTER OF CERTIFICATE OF CITY/COUNTY___________ STATEMENT

OF SELF INSURANCE
1 Insert (CT District) addressee information _______20__ ATTN: (name of CT representative)
City/County ______________
Department of Finance
RE: Statement of Self Insurance for ____________ Related to ______________ Maintenance Agreement with State of California Department of Transportation (“STATE”) for the ________________ along Highway __________at ____________________
Dear __________
The purpose of this letter is to certify that the CITY/COUNTY is self-insured and selffunded covering third-party claims arising out of its general operations (for example, commercial general liability and automobile liability insurance). Further the CITY/COUNTY is self-insured covering workers’ compensation claims and has received the consent of the State Department of Industrial Relations to do so.

Each fiscal year, as a part of its budgetary process, the CITY/COUNTY appropriates funds specifically to satisfy valid third-party claims and workers’ compensation claims, which may be brought against the CITY/COUNTY.

The CITY/COUNTY certifies its self-insured, general liability coverage for bodily injury liability and property damage liability, meets the required coverage amounts in section 10.1 (INSURANCE) of the Maintenance Agreement, specifically general liability insurance, coverage of bodily injury liability and property damage liability in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. The CITY/COUNTY further represents that regarding any claims made in connection with the Maintenance Agreement by the STATE, the STATE will be first-in-line regarding the reserved, self-insured amounts.

If you need any additional information regarding this letter, please direct those inquires through my office.

Sincerely,

FINANCE MANAGER

EXHIBIT C
1 TRAFFIC SIGNAL AND LIGHTING
Caltrans and CITY/COUNTY of__________________
Effective ____________, 20____

BASIS OF COST DISTRIBUTION
State-Owned and Maintained
Billed by the State
Route and
PM
Location Type of
Facility
Cost Distribution
State CITY/COUNTY
Utility-Owned and Maintained
Billed by the State
Route and
PM
Location Type of
Facility
Cost Distribution
State CITY/COUNTY

EXHIBIT D
1 (Individual maintenance items that are not provided for in the body of the Agreement.)
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TRANSPORTATION ART MAINTENANCE AGREEMENT
WITH
CITY/COUNTYOF ________
This Transportation Art Maintenance Agreement (“AGREEMENT”) executed on and effective from _______________________________, is made by and between the State of California, acting by and through the California Department of Transportation (“STATE”), and the City/County of __________(“LOCAL AGENCY”); each may be referred to individually as a “PARTY,” and jointly as “PARTIES.”

RECITALS

1. The PARTIES desire to work together to allocate their respective obligations to the Transportation Art Project ______________________________(description and title) installed or painted within STATE Right of Way by Encroachment Permit No. _________________________. PARTIES acknowledge the Encroachment Permit Number will be added after this AGREEMENT is executed.

2. This AGREEMENT will set forth the LOCAL AGENCY’s maintenance responsibilities for the Transportation Art Project (“ARTWORK”) that is installed or painted within the STATE Right of Way at/on__________________________, as shown in Exhibit A, attached hereto.

3. Prior to execution of this AGREEMENT, the author(s) of ARTWORK executed a written agreement conveying to STATE a) a waiver of any and all rights in the ARTWORK under 17 U.S.C. section 106A and related laws, b) physical ownership of and right to possess the ARTWORK, and c) a nonexclusive license to reproduce and use the ARTWORK for non-commercial purposes. This written agreement between STATE and the author(s) of ARTWORK was executed on _________________[DATE].

TERMS

1. Definitions.

A. “AGREEMENT” means this AGREEMENT between STATE and LOCAL AGENCY along with exhibits and attachments attached during the execution of this AGREEMENT or in the future by mutual consent of the PARTIES.

B. “ARTWORK” means the entire Transportation Art Project installed or painted within the STATE Right of Way depicted or described in Exhibit A attached to this AGREEMENT.”
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2. Agreements with Creators of ARTWORK. LOCAL AGENCY agrees, represents, and warrants that the author or authors of ARTWORK executed a written agreement, in a form approved by STATE, conveying to STATE a) a waiver of any and all rights in the ARTWORK under 17 U.S.C. section 106A and related laws, b) physical ownership of and right to possess the ARTWORK, and c) a nonexclusive license to reproduce and use the ARTWORK for non-commercial purposes.

LOCAL AGENCY shall be solely responsible for any damages (including exemplary and punitive damages) arising from its breach of and/or failure to fully comply with this provision of the AGREEMENT.

3. Maintenance Obligation and Standards. LOCAL AGENCY shall have the obligation to maintain the ARTWORK in accordance with this AGREEMENT so long as the ARTWORK exists in any form and in any condition. LOCAL AGENCY shall perform all maintenance of the ARTWORK in compliance with terms of the AGREEMENT, the standards set forth in California Streets and Highways Code section 27, and in accordance with all other applicable California laws, regulations, and standards, including the STATE’s Project Development Procedures Manual (PDPM), Chapter 29, Transportation Art, STATE’s Maintenance Manual, policies, procedures, and specifications in effect as of the execution of this AGREEMENT and as subsequently amended. The obligation to maintain the ARTWORK shall include routine inspections of the ARTWORK and the maintenance, repair, and cleaning of the ARTWORK, as well as the restoration of damaged ARTWORK, graffiti removal (in accordance with the terms of this AGREEMENT), and the removal of dirt, debris, vegetation growth, and weeds surrounding or obscuring the ARTWORK (hereafter collectively referred to as “MAINTAIN/MAINTENANCE”). LOCAL AGENCY’s obligation to MAINTAIN the ARTWORK is until the ARTWORK is removed consistent with terms of this AGREEMENT.

4. Encroachment Permits. Before LOCAL AGENCY, or any of its agents, may enter STATE right of way to perform MAITNENANCE of the ARTWORK, or any MAINTENANCE within STATE’s right of way in which the ARTWORK is located, LOCAL AGENCY shall have applied for and obtained, from the applicable STATE District, an Encroachment Permit in accordance with the STATE Encroachment Permit process. For the term of this AGREEMENT, LOCAL AGENCY shall obtain any encroachment permits required by law to perform the obligations under this AGREEMENT. STATE shall issue any and all encroachment permits at no cost to LOCAL AGENCY. LOCAL AGENCY’s contractors and subcontractors, including the artist who creates the ARTWORK, shall apply for, and be issued encroachment permits to perform work within STATE’s right of way, to the extent required by law. If the encroachment permit and this AGREEMENT conflict, the requirements of this AGREEMENT will prevail.

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5. Graffiti Removal. LOCAL AGENCY, at LOCAL AGENCY’s sole cost and expense, shall remove all graffiti from the ARTWORK. LOCAL AGENCY is solely responsible for ensuring that any graffiti that in any way resembles a mural, artwork, paintings, or other similar elements shall not be removed without the written authorization of STATE. Graffiti removal must protect air and water quality as required by law. LOCAL AGENCY shall conform to the terms stated in STATE’s Maintenance Manual, Volume 1, Family D Chapter, D1.06.

6. Restoration of ARTWORK. LOCAL AGENCY, at LOCAL AGENCY’s expense, shall restore damaged ARTWORK to its original condition as set forth in Exhibit A either within thirty (30) calendar days of discovery of such damage or within thirty (30) calendar days of being notified in writing by STATE, whichever is sooner. If LOCAL AGENCY is unable to or otherwise fails to restore the damaged ARTWORK by this time, STATE may provide a plan to LOCAL AGENCY which is reasonable and in good faith to perform the required operation.

7. Routine MAINTENANCE. LOCAL AGENCY shall ensure the ARTWORK is provided with adequate routine MAINTENANCE necessary to maintain a neat and attractive appearance in accordance with a schedule mutually agreed to by PARTIES. LOCAL AGENCY shall coordinate said MAINTENANCE with STATE prior to the start of any work.

8. Failure to Perform MAINTENANCE. If during the term of this AGREEMENT, LOCAL AGENCY ceases to perform the MAINTENANCE of the ARTWORK to the satisfaction of STATE as provided by this AGREEMENT, STATE will provide written notice to LOCAL AGENCY to cure the default and LOCAL AGENCY will have thirty (30) calendar days within which to effect that cure. If LOCAL AGENCY does not MAINTAIN the ARTWORK or establish a plan and schedule to do so that is acceptable to STATE, STATE may either perform the MAINTENANCE on behalf of LOCAL AGENCY at LOCAL AGENCY’s expense, remove the ARTWORK at LOCAL AGENCY’s sole cost and expense and restore STATE’s right of way to its prior condition, or direct the LOCAL AGENCY to do so at LOCAL AGENCY’s expense.

LOCAL AGENCY hereby agrees to pay said STATE costs and expenses, within thirty (30) calendar days of receipt of billing by STATE.

9. Duties Upon Termination. In the event this AGREEMENT is terminated, LOCAL AGENCY shall remove the ARTWORK if STATE provides written consent for such removal, and restore STATE’s right of way to a safe and attractive condition compliant with all applicable laws and regulations and acceptable to STATE.

10. Additional LOCAL AGENCY Duties. During any MAINTENANCE work under this AGREEMENT, LOCAL AGENCY shall be responsible for MAINTAINING traffic operations and traffic control, including traffic lane closures as needed, to perform the MAINTENANCE in a safe and lawful manner. LOCAL AGENCY shall Rev 06/2023
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be responsible for obtaining any encroachment permits required by STATE or under this AGREEMENT. LOCAL AGENCY shall be responsible for complying with any and all state laws and regulations in the performance of its MAINTENANCE duties. LOCAL AGENCY shall provide STATE’s District_____________ Area Maintenance Superintendent, (name)_____________________, at least twenty-four (24) hours prior telephone or email notice before performing any maintenance services under this AGREEMENT. MAINTENANCE services shall be performed between the hours of 9:00 AM and 3:00 PM or a time otherwise authorized by STATE and may be performed on weekends and holidays if necessary.

11. Location Impacts. Except as expressly authorized in writing by STATE, LOCAL AGENCY, in performing its obligations under this AGREEMENT, shall not alter any existing freeway or highway structure or facility, nor shall it remove any landscaping within the STATE’s right of way to MAINTAIN or alter the ARTWORK.

12. Costs and Expenses Borne by LOCAL AGENCY. The cost and expense of all work by or on behalf of LOCAL AGENCY shall be borne solely by LOCAL AGENCY, and no cost or expense shall be borne by STATE. STATE will not be responsible for the cost or expense of any MAITNENANCE, or any other maintenance, graffiti removal, repair, or restoration of the ARTWORK. STATE will not be responsible for any damages caused by any vandalism or accidents on the roadway. STATE shall only be responsible for its own direct actions.

13. Obligation to Remove ARTWORK. LOCAL AGENCY shall remove the ARTWORK whenever, in the opinion of STATE, it creates a maintenance, safety, or operational concern. In the event LOCAL AGENCY fails to remove the ARTWORK in a timely manner, STATE may remove the ARTWORK thirty (30) calendar days following written notification to LOCAL AGENCY, and STATE will bill LOCAL AGENCY for, and LOCAL AGENCY shall pay, all costs and expenses arising from its removal and for the restoration of STATE’s right of way to their original condition. STATE reserves the right to remove the ARTWORK or alter parts thereof due to any emergency, such as, but not limited to, an immediate safety hazard to the public as determined by STATE. Removal activities may include any construction, rehabilitation, or other necessary activities affecting transportation facilities without any obligation, compensation to, or approval of LOCAL AGENCY.

14. Unsatisfactory Conditions. STATE may provide LOCAL AGENCY with timely written notice of unsatisfactory conditions that require correction by the LOCAL AGENCY. However, the non-receipt of notice does not excuse LOCAL AGENCY from performing maintenance responsibilities assumed under this AGREEMENT.

STATE shall notify LOCAL AGENCY at least thirty (30) calendar days in advance of any planned work that may impact the ARTWORK. If the work required is due to a safety hazard, this notification period does not apply, and STATE will notify LOCAL AGENCY as soon as practicable of the planned or performed work.

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15. Acknowledgement of Title. LOCAL AGENCY, and its agents, recognize that STATE owns the exclusive title to the ARTWORK, including but not limited to, the right physically to possess, transfer, sell, dispose of, or destroy the ARTWORK.

16. Effect on Prior Maintenance Agreements. This AGREEMENT does not supersede or replace any prior maintenance agreements between LOCAL AGENCY and STATE concerning the highways, freeways, or other STATE facilities within the STATE right of way in which the ARTWORK is placed, except to the extent those agreements concern or effect the ARTWORK or the purposes of this AGREEMENT.

17. Encampments. If encampments belonging to Persons Experiencing Homelessness (PEH) are encountered by LOCAL AGENCY during MAINTENANCE of the ARTWORK, the LOCAL AGENCY will inform the STATE and comply with any existing agreements between STATE and LOCAL AGENCY regarding the removal of the PEH and any structures, personal property, debris, and/or other items related to the encampment that covers the location(s) shown in Exhibit A, subject to applicable State and Federal law. In the absence of any such agreements, STATE will determine how to proceed with the PEH and encampment(s) and communicate with LOCAL AGENCY on how to proceed with MAINTENANCE under this AGREEMENT.

18. No Third-Party Beneficiaries. This AGREEMENT is not intended to create duties, obligations, or rights of third parties beyond the PARTIES to this AGREEMENT. Nor does this AGREEMENT affect a PARTY’s legal liability by imposing any standard of care for the operation and maintenance of STATE highways and LOCAL AGENCY facilities different from the standard of care imposed by law.

19. Indemnification.

A. Neither LOCAL AGENCY nor any of its officers or employees is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE in connection with any work, authority or jurisdiction conferred upon STATE pursuant to this AGREEMENT. To the extent permitted by law, STATE shall fully defend, indemnify, and save harmless LOCAL AGENCY and its officers and employees from all claims, suits or actions of every kind occurring by reason of anything done or omitted to be done by STATE, its contractors, subcontractors, and/or its agents pursuant to this AGREEMENT.

B. Neither STATE nor any of its officers or employees is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by LOCAL AGENCY in connection with any work, authority or jurisdiction conferred upon LOCAL AGENCY pursuant to this AGREEMENT. To the extent permitted by law, LOCAL AGENCY shall fully defend, indemnify, and save harmless STATE and its officers and employees from all claims, suits or actions of every kind occurring by reason of anything done or omitted to be done by Rev 06/2023
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LOCAL AGENCY, its contractors, sub-contractors, and/or its agents pursuant to this AGREEMENT.

20. Prevailing Wages and Labor Code Compliance. LOCAL AGENCY shall comply with any and all applicable labor and prevailing wage requirements in Labor Code Sections 1720 through 1815 and implementing regulations for any public works or maintenance contracts and subcontracts executed for the LOCAL AGENCY’s work under this AGREEMENT.

21. Insurance1. LOCAL AGENCY and its contractors and subcontractors shall maintain in force during the term of this AGREEMENT a policy of general liability insurance, including coverage of bodily injury and property damage liability, naming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. LOCAL AGENCY will provide a certificate of insurance evidencing this insurance in a form satisfactory to STATE Self-Insured.
2 LOCAL AGENCY is self-insured. LOCAL AGENCY shall deliver evidence of self-insured coverage providing general liability insurance, coverage of bodily injury and property damage liability, in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess by delivering a Letter Certifying Self-Insurance. The Letter of Self-Insurance must identify the AGREEMENT number, and location as depicted in Exhibit A. LOCAL AGENCY shall provide the original Letter Certifying Self-Insurance as a condition to STATE’s execution of this AGREEMENT. A copy of the original letter shall be attached to this AGREEMENT as Exhibit B.

Self-Insured using Contractor3. If the MAINTENANCE performed under this AGREEMENT is done by LOCAL AGENCY‘s contractor(s), LOCAL AGENCY shall require its contractor(s) to maintain in force, during the term of this AGREEMENT, a policy of general liability insurance, including coverage of bodily injury and property damage liability, naming STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. LOCAL AGENCY shall provide a certificate of insurance evidencing this insurance in a form satisfactory to STATE.

1 Delete if self-insured.
2 Delete if not self-insured
3 Delete if not self-insured; include 2 and 3 if self-insured and LA is subcontracting the work. Need both a self-insurance certification letter and insurance certificate naming STATE as additional, covered insured.

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22. Termination. This AGREEMENT may be terminated by the mutual written consent of each PARTY. STATE may terminate this AGREEMENT at any time with or without cause.

23. Successors. This AGREEMENT shall be binding upon and inure to the benefit of each of the PARTIES and their respective successors-in-interest including, any subsequently incorporated city or other municipality established within the LOCAL AGENCY’s jurisdictional limits. If the successor city or municipality fails to accept the obligations of the LOCAL AGENCY by entering into a new agreement with STATE, LOCAL AGENCY shall continue to be contractually bound by the terms of this AGREEMENT.

24. Authority. Each individual executing this AGREEMENT on behalf of each PARTY represents and warrants that the individual is duly authorized to execute this AGREEMENT. LOCAL AGENCY represents and certifies that it has, through its regular political process, authorized the execution of this AGREEMENT by appropriate resolution, delegation, or plenary authority, as required. Further, on ______[DATE], the Council of the _________[LOCAL AGENCY] through Resolution No. _____ approved a recommendation to accept MAINTENANCE responsibilities for the ARTWORK.

25. Amendment to Agreement. The terms of this AGREEMENT can be changed only by a formal written amendment executed by all PARTIES.

26. Counterparts. This AGREEMENT may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

27. Electronic Signatures. Electronic signatures of the PARTIES, whether digital or encrypted, are intended to authenticate this written AGREEMENT, and shall have the same force and effect as manual signatures for this AGREEMENT.

THE CITY/COUNTY OF

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
Dated:

Mayor/Chairman
INITIATED AND APPROVED:

Dated: Dated:

City/County
Manager
Deputy District Director
Maintenance District
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Dated:

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EXHIBIT A
[Include (1) detailed design plans and rendering of what the final Artwork will look like once installed, and (2) plan map identifying the applicable location of the Transportation Art and shows what Artwork will look like once installed.] Draft date
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EXHIBIT B
LETTER CERTIFYING CITY’S/COUNTY’S SELF-INSURED STATUS (TEMPLATE) On Local Agency letterhead
Insert (CT District) addressee information ________________, 20___ ATTN: (name of CT representative)
Re: Statement of Self-Insurance for CITY/COUNTY of__________________ for Transportation Art Maintenance Agreement No.__________with California Department of Transportation for the ____________along
SR_____________at________________
Dear ______________________:

This letter certifies that the CITY/COUNTY of ________________is self-insured and selffunded covering third-party claims arising out of its general operations (i.e.; commercial general liability and automobile liability insurance). Further, the CITY/COUNTY is self-insured covering workers’ compensation claims and has received the consent of the State Department of Industrial Relations to do so.

The CITY/COUNTY certifies its self-insured, general liability coverage for bodily injury and property damage liability, and meets the required coverage amounts in section 21 (Insurance) of the Transportation Art Maintenance Agreement, specifically general liability insurance, coverage of bodily injury and property damage liability in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess.

If you need any additional information regarding this letter, please direct those inquiries through my office.

Sincerely,
Draft date
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MA #____
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Finance Manager/Risk Manager/Authorized Representative’s Title City Manager’s Report

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Fortuna City CouncilApril 15, 2024

Fortuna City Council
April 15, 2024