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Fortuna City Council
June 3, 2024

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STAFF REPORT
City Council Business Item
DATE: June 3, 2024
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Organic Waste Disposal Ordinance Revision
STAFF RECOMMENDATION:

Staff recommends that the Council hold a public hearing, conduct a first reading and introduce Ordinance 2024-770, revising Chapter 8.14 to the Fortuna organic waste disposal reduction regulationsthat implement and enforce CalRecycle organics regulations and SB 1383 compliance date from January 1, 2024 to July 1, 2026.

EXECUTIVE SUMMARY:

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

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

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

There are many parts of SB 1383 that will take time and effort to develop and implement. The City completed an Implementation Plan in collaboration with the HWMA and other jurisdictions in Humboldt County. A part of that effort was the development of a roadmap of options for how we Business Item 5d

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might look to identify the requirements of the various portions of the new regulations. The City will have to make changes to the City's waste collection, recycling, and organics programs in the next few years to satisfy the requirements of SB 1383.

Ordinance 2022-755 was adopted by the council on June 2nd 2022 to satisfy the City’s requirement to adopt an enforceable ordinance, with implementation of the requirements delayed until January 1, 2023. The council subsequently adjusted the timeline to July 1, 2023 by Ordinance 2022-757 due delays in negotiating the franchise agreement and availability of equipment to process the organic waste, and further extended the date to July 1, 2024 by Ordinance 2023-761. Currently staff is still negotiating the franchise agreement changes with our franchise waste hauler (Recology) and do not anticipate being able to complete the franchise agreement changes until sometime within the next six months. Furthermore, it is unlikely that there will be a facility available until early 2026 to process the waste for shipping to an organic waste recycling facility.

Therefore, staff is recommending that we delay the effective date until July 1, 2026. The Humboldt Waste Management Authority (HWMA) is working on a project to create a tipping floor to process and haul organic waste to an approved facility. The soonest a facility would be available is July 1, 2025. Therefore, if the schedule for the HWMA facility is delayed, or Recology continues to experience supply chain delays for equipment, changes may need to be revised again in the future.

RECOMMENDED COUNCIL ACTION:

1. Open the Public Hearing

2. Receive staff presentation and review Council questions with staff

3. Open Public Comment

4. Close Public Comment

5. Motion to introduce and conduct a first reading, by title only, of Ordinance 2024-770.

Roll call vote.

ATTACHMENTS:
 Ordinance No. 2024-770, An Ordinance Of The City Council Of The City Of Fortuna, California Amending Title 8 – Health and Safety Of The Fortuna Municipal Code By Revising Chapter 8.14– Organic Reduction and Recycling Ordinance -1-
ORDINANCE NO. 2024-770

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORTUNA CALIFORNIA, AMENDING TITLE 8 – HEALTH AND SAFETY OF THE FORTUNA MUNICIPAL CODE BY REVISING CHAPTER 8.14– ORGANIC REDUCTION AND

RECYCLING ORDINANCE
WHEREAS, the City of Fortuna (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and
WHEREAS, on June 20, 2023, the City Council passed and adopted Ordinance No. 2023-761, which added Chapter 8.14 to Title 8 of the Fortuna Municipal Code (“FMC”), to implement relevant provisions of Senate Bill 1383 regulating organic waste collection services, generators of organic waste, waste haulers, and generators and processors of edible food, together with enforcement mechanisms and administrative civil penalties for violations of local regulations; and WHEREAS, pursuant to Section 4 of Ordinance No. 2023-761, Ordinance No. 2023-761 was effective as of January 1, 2024; and
WHEREAS, pursuant to Section 4 of Ordinance No. 2023-761, the City Council amended Chapter

8.14 to Title 8 of the Fortuna Municipal Code to provide for deferred implementation of certain requirements set forth in Chapter 8.14 to allow time for the City to complete its Franchise Agreement negotiations and to ensure the necessary equipment and regional facilities are available to process the organics waste for recycling; and
WHEREAS, the City Council intends, by this Ordinance, to further amend certain provisions of Chapter 8.14 of the FMC to provide for further deferred implementation of certain requirements set forth in Chapter 8.14 to allow time additional for the City to complete its Franchise Agreement negotiations and to ensure the necessary equipment and regional facilities are available to process the organics waste for recycling; and
WHEREAS, the City Council has considered the staff report, supporting documents, public testimony, and all appropriate information that has been submitted with this Ordinance.

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

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

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

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

SECTION 3. Fortuna Municipal Code Amendment. Section 8.14.040 (Requirements For SingleFamily Generators) of the Fortuna Municipal Code is amended by deleting the text shown below as bold-strike-through-text and adding the text shown below in bold-underlined-text. -2-

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

8.14.100 and/or that are located in a census tract for which CalRecycle has issued a low population waiver (as described in 14 CCR Section 18984.12), Single-Family generators, on and after July 1, 2026, shall:
(a) Be subscribed to the collection service(s) approved by the CITY for Compost Containers, Recycling Containers, and Landfill Containers. The CITY shall have the right to review the number and size of a generator’s containers to evaluate the adequacy of capacity provided for each type of collection service and to review the separation of materials and containment of materials. A Single-Family generator shall adjust its service level for its collection services as requested by the CITY in order to meet the standards set forth in this Ordinance. Generators may manage their Organic Waste by preventing or reducing their Organic Waste, managing Organic Waste on site, and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c) to the extent permitted by other applicable laws.
(b) Participate in the Organic Waste collection service(s) approved by the CITY by placing designated materials in designated containers as described below, and not placing Prohibited Container Contaminants in collection containers. Generator shall place Source Separated Compost Container Organic Waste, including Food Waste, in the Compost Container; Source Separated Recyclable Materials in the Recycling Container; and Landfill Container Waste in the Landfill Container; in each case, solely to the extent such materials are acceptable materials in the applicable container under the franchise agreement between the CITY and a Regulated Hauler. Generators shall not place materials designated for the Landfill Container into the Compost Container or the Recycling Container. (c) The Enforcement Agency for the provisions of this section is the CITY and any other Designee of the CITY.

SECTION 4. Fortuna Municipal Code Amendment. Section 8.14.050 (Requirements For Commercial Business Generators Including Multi-Family Residential Dwellings) of the Fortuna Municipal Code is amended by deleting the text shown below as bold-strike-through-text and adding the text shown below in bold-underlined-text.

8.14.050. REQUIREMENTS FOR COMMERCIAL BUSINESS GENERATORS

INCLUDING MULTI-FAMILY RESIDENTIAL DWELLINGS
On and after July 1, 2026, Commercial Business Organic Waste Generators, including MultiFamily Residential Dwellings, shall:
(a) Except Commercial Businesses that meet the Self-Hauler requirements in Section

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

SECTION 5. Fortuna Municipal Code Amendment. Section 8.14.070 (Requirements For Commercial Edible Food Generators) of the Fortuna Municipal Code is amended by deleting the text shown below as bold-strike-through-text and adding the text shown below in bold-underlined-text.

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

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

SECTION 6. Fortuna Municipal Code Amendment. Section 8.14.080 (Requirements For Food Recovery Organizations and Services) of the Fortuna Municipal Code is amended by deleting the text shown below as bold-strike-through-text and adding the text shown below in bold-underlinedtext.

8.14.080. REQUIREMENTS FOR FOOD RECOVERY ORGANIZATIONS AND

SERVICES
(a) Nothing in this Ordinance prohibits a Food Recovery Service or Food Recovery Organization from refusing to accept edible food from a Commercial Edible Food Generator, in accordance with 14 CCR Section 18990.2(d). (b) On and after July 1, 2025, Food Recovery Services collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as -8-
otherwise specified by 14 CCR Section 18991.5(a)(1):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the service collects Edible Food.
(2) The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month. This may also include the total quantity in pounds of food collected that was spoiled when received from a Commercial Edible Food Generator or otherwise not able to be used to feed people. (3) The quantity in pounds of Edible Food transported to each Food Recovery Organization per month.
(4) The name, address, and contact information for each Food Recovery Organization that the Food Recovery Service transports Edible Food to for Food Recovery. (c) On and after July 1, 2025, Food Recovery Organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the organization receives Edible Food. (2) The quantity in pounds of Edible Food received from each Commercial Edible Food Generator per month. This may also include the total quantity in pounds of food collected that was spoiled when received from a Commercial Edible Food Generator or otherwise not able to be used to feed people. (3) The name, address, and contact information for each Food Recovery Service that the organization receives Edible Food from for Food Recovery. (d) Food Recovery Organizations and Food Recovery Services that have their primary address physically located in the City and contract with or have written agreements with one or more Commercial Edible Food Generators pursuant to 14 CCR Section 18991.3(b) shall report to the CITY the total pounds of Edible Food recovered from the Tier One and Tier Two Commercial Edible Food Generators they have established a contract or written agreement with pursuant to 14 CCR Section 18991.3(b) according to the following schedule: no later than March 31, 2024, and no later than every March 31 thereafter, submit a report covering the period of January 1 to December 31 of the previous calendar year. (e) In order to support Edible Food Recovery capacity planning assessments and similar studies, Food Recovery Services and Food Recovery Organizations operating in the City shall provide, upon request, information and consultation to the Enforcement Agency regarding existing, or proposed new or expanded, Food Recovery capacity in a form that can be provided to or that can be accessed by the CITY and Commercial Edible Food Generators in the City A Food Recovery Service or Food Recovery Organization contacted by the Enforcement Agency shall respond to such request for information within 60 days, unless a shorter timeframe is otherwise specified by the Enforcement Agency. -9-
(f) The Enforcement Agency for the provisions of this section is the CITY and any other Designee of the CITY.

SECTION 7. Fortuna Municipal Code Amendment. Section 8.14.090 (Requirements For Regulated Haulers And Facility Operators) of the Fortuna Municipal Code is amended by deleting the text shown below as bold-strike-through-text and adding the text shown below in boldunderlined-text.

8.14.090. REQUIREMENTS FOR REGULATED HAULERS AND FACILITY

OPERATORS
(a) Requirements for Regulated Haulers.
(1) A Regulated Hauler providing Single-Family, Commercial, or industrial Organic Waste collection service to generators within the City shall meet the following requirements and standards in connection with collection of Organic Waste:
(A) Through written notice to the CITY annually on or before March 31, identify the facilities to which they will transport Organic Waste including facilities for Source Separated Recyclable Materials and Source Separated Compost Container Organic Waste.
(B) Commencing July 1, 2026, transport Source Separated Recyclable Materials to a facility that recycles those materials and transport Source Separated Compost Container Organic Waste to a facility, operation, activity, or property that recovers Organic Waste as defined in 14 CCR, Division 7, Chapter 12, Article 2.
(C) Obtain approval from the CITY to haul Organic Waste, unless it is transporting Source Separated Organic Waste to a Community Composting site or lawfully transporting C&D in a manner that complies with 14 CCR Section 18989.1, Section 8.14.130, and any CITY rules.
(2) The Enforcement Agency for the provisions of this subsection (a) is the CITY and any other Designee of the CITY.
(b) Requirements for Facility Operators and Community Composting Operations (1) Owners of facilities, operations, and activities that recover Organic Waste, including, but not limited to, compost facilities, in-vessel digestion facilities, and publicly-owned treatment works shall, upon request from the CITY, provide within 60 days information regarding available and potential new or expanded capacity at their facilities, operations, and activities, including information about through put and permitted capacity necessary for planning purposes. (2) Community Composting operators shall, upon request from the CITY, provide within 60 days information to support Organic Waste capacity planning, including, but not limited to, an estimate of the amount of Organic Waste anticipated to be -10-
handled at the Community Composting operation.
(3) The Enforcement Agency for the provisions of this subsection (b) is the CITY and any Designee of the CITY.

SECTION 8. Fortuna Municipal Code Amendment. Section 8.14.100 (Requirements For SelfHaulers) of the Fortuna Municipal Code is amended by deleting the text shown below as bold-strikethrough-text and adding the text shown below in bold-underlined-text.

8.14.100. REQUIREMENTS FOR SELF-HAULERS
(a) On and after July 1, 2026, Self-Haulers shall source separate all recyclable materials and Organic Waste (materials that the CITY otherwise requires generators to separate for Collection in the CITY’s organics and recycling collection program) generated or handled on-site from Solid Waste in a manner consistent with 14 CCR Sections 18984.1 and 18984.2, or shall haul Organic Waste to a High Diversion Organic Waste Processing Facility as specified in 14 CCR Section 18984.3.
(b) On and after July 1, 2026, Self-Haulers shall haul their Source Separated Recyclable Materials to a facility that recovers those materials; and haul their Source Separated Compost Container Organic Waste to a Solid Waste facility, operation, activity, or property that processes or recovers Source Separated Organic Waste. Alternatively, on and after July 1, 2026, Self- Haulers may haul Organic Waste to a High Diversion Organic Waste Processing Facility. Self-Haulers may Back-haul to a destination owned and operated by the generator using the generator’s own employees and equipment and then haul those consolidated materials to facilities meeting the requirements of this subsection (b) or otherwise dispose of the waste, recyclables, and organic waste in a manner consistent with this Ordinance.
(c) Self-Haulers shall certify at least once every five (5) years to compliance with this section, on a form provided by the City, as a precondition to self-hauling, and upon every change of address.
(d) Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall, on and after July 1, 2026, keep a record of the amount of Organic Waste delivered to each Solid Waste facility, operation, activity, or property that processes or recovers Organic Waste; this record shall be subject to Inspection by the Enforcement Agency. The records shall include the following information:
(1) Delivery receipts and weight tickets from the entity accepting the material. (2) The amount of material in cubic yards or tons transported by the generator to each entity.
(3) If the material is transported to an entity that does not have scales on-site, or employs scales incapable of weighing the Self-Hauler’s vehicle in a manner that allows it to determine the weight of materials received, the Self- Hauler is not required to record the weight of material but shall keep a record of the entities that received the Organic Waste.
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(e) Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall submit a Certification of Recycling Service Form to the Enforcement Agency for review for compliance if they do not also subscribe to separate collection service for Compost Containers and/or Recycling Containers by a Regulated Hauler.

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

SECTION 9. Fortuna Municipal Code Amendment. Section 8.14.150 (Enforcement) of the Fortuna Municipal Code is amended by deleting the text shown below as bold-strike-through-text and adding the text shown below in bold-underlined-text.

8.14.150. ENFORCEMENT
(a) Violation of any provision of this Chapter shall constitute grounds for issuance of an administrative citation and assessment of a fine by the Enforcement Agency. Enforcement Actions under this Chapter are issuance of an administrative citation with a fine. The CITY’s procedures on imposition of administrative fines in Chapter 1.09 are hereby incorporated in their entirety, as modified from time to time, and shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this Chapter and any rule or regulation adopted pursuant to this Chapter. (b) Other remedies allowed by law may be used, including, but not limited to, civil action or prosecution as a misdemeanor or an infraction. The CITY may pursue civil actions in the California courts to seek recovery of unpaid administrative citations. The CITY may choose to delay court action until such time as a sufficiently large number of violations, or cumulative size of violations exist such that court action is a reasonable use of CITY staff -12-
and resources.
(c) Enforcement pursuant to this Chapter may be undertaken by the Enforcement Agency. (d) Appeals Process. Persons subject to administrative enforcement of this Chapter may request an administrative hearing pursuant to Section 1.09.060. (e) Education Period for Non-Compliance Beginning July 1, 2026, and through December 31, 2024. The CITY will conduct Inspections, Remote Monitoring, Route Reviews or waste evaluations, and Compliance Reviews, depending upon the type of regulated entity, to determine compliance, and if the CITY determines that Organic Waste Generator, SelfHauler, Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance, the CITY shall provide educational materials to the entity describing its obligations under this Chapter and a notice that compliance is required by July 1, 2026, and that violations may be subject to administrative civil penalties from the CITY starting on January 1, 2024.
(f) Civil Penalties for Non-Compliance. Beginning July 1, 2026, if the CITY determines that an Organic Waste Generator, Self-Hauler, Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this Chapter, it shall document the noncompliance or violation, issue an administrative citation and take Enforcement Action, as needed.

SECTION 10. Severability. If any provision of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such invalidity shall not affect the remaining provisions or application of the remaining provisions of this Ordinance, which can be given effect without the invalid provisions or application.

SECTION 11. Effective Date. This Ordinance shall become effective thirty (30) days after its adoption by the City Council. The Clerk shall cause this Ordinance to be published in the manner required by Government Code section 36933.

INTRODUCED AND FIRST READING PERFORMED on this 3rd day of June 2023 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

Tami Trent, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
-13-
SECOND READING PERFORMED AND ADOPTED on the 17th day of June 2023 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST:

Tami Trent, Mayor
___________________________
Siana L. Emmons, City Clerk
Business Item 5e

Page 1 of 4 ends

STAFF REPORT
City Council Business Item
DATE: June 3, 2024
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Fortuna Business Improvement District Annual Report and Resolution of Intent Regarding the Annual Levy
STAFF RECOMMENDATION:

Staff recommends that the Council consider amending the FBID Annual Report approved at the May 20, 2024, Regular Meeting and thereafter adopt a resolution of intent consistent with the Annual Report.

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

The resolution of intent must be adopted after the Council reviews and approves the FBID Annual Report. At the May 20, 2024, Regular Meeting, the Council considered the Annual Report submitted by the FBID Advisory Committee and approved the Annual Report with a modification not to levy any assessment for the 2024-2025 fiscal year. The Council considered but ultimately rejected the staff’s recommendation to impose a revised assessment of $25.00 per business, instead of the current scaled assessment based upon gross receipts. The Council found that the unspent funds from the 2023-2024 fiscal year are likely sufficient for the 2024-2025 fiscal year and, accordingly, decided against any assessment for the upcoming fiscal year.

The City Manager met with the FBID Advisory Committee on May 30, 2024. The Advisory Committee strongly recommended that the Council reconsider its decision to not levy any assessment for the 2024-2025 fiscal year and to, instead, levy a flat assessment of $25 per business.

The Advisory Committee feels strongly that the funds remaining following the current fiscal year will be insufficient to fund all the activities planned for the next fiscal year. The Advisory Committee further feels that eliminating the assessment for this year will make it more difficult to reinstate the assessment in subsequent years.

Accordingly, staff would like to give the Council an opportunity to consider further amendments to the Annual Report. The Council may choose not to amend the Annual Report, thereby confirming its decision not to levy an assessment for the 2024-2025 fiscal year OR amend the Annual Report to recommend a flat rate assessment of $25.00 per business.

Business Item 5e

Page 2 of 4 ends

If the Council chooses the former (i.e., no levy), the Council should adopt Resolution No. 15A, attached hereto as Attachment A, to confirm its decision not to levy and annual assessment for the upcoming fiscal year. By adopting this resolution, the Council may in subsequent years re-impose the levy in the manner required by law.

Alternatively, if the Council desires to amend the Annual Report, it should do so by regular motion, as recommended below. After amending the Annual Report, the Council should then adopt Resolution No. 15B, attached hereto as Attachment B, to give notice of the Council’s intention to levy the assessment for the upcoming fiscal year and setting a public hearing for June 17, 2024, to consider whether a protest exists.

The resolution of intent is the first procedural step required to levy the annual assessment. The resolution of intent provides notice of a public hearing to occur on June 17, 2024, at which time business owners may submit written protests, as more particularly set forth in the resolution.

Pursuant to Section 36534 of the Streets and Highways Code, the annual resolution of intention must do all of the following:
(1) Declare the intention of the city council to change the boundaries of the parking and business improvement area, or in any benefit zone within the area, if the annual report proposes a change.
(2) Declare the intention of the city council to levy and collect assessments within the parking and business improvement area for the fiscal year stated in the resolution. (3) Generally describe the proposed improvements and activities authorized by the ordinance enacted pursuant to Section 36527 and any substantial changes proposed to be made to the improvements and activities.
(4) Refer to the parking and business improvement area by name and indicate the location of the area.
(5) Refer to the report on file with the clerk for a full and detailed description of the improvements and activities to be provided for that fiscal year, the boundaries of the area and any benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year. (6) Fix a time and place for a public hearing to be held by the city council on the levy of the proposed assessment for that fiscal year. The public hearing shall be held not less than 10 days after the adoption of the resolution of intention. (7) State that at the public hearing written and oral protests may be made.

Business Item 5e

Page 3 of 4 ends

FINANCIAL IMPACT:

FBID collects approximately $63,000 in assessments annually and the funds are distributed as follows:

Core Area Assessment Distribution to Core
Area (62%)
Citywide Share
(38%)
Citywide $35,000 $0 $35,000
Downtown $13,000 $8,060 $4,940
Redwood Village $10,000 $6,200 $3,800
Strongs Creek $5,000 $3,100 $1,900
Total $63,000 $17,360 $45,640
The total expenditures for Fiscal Year 2023-2024 was $47,871. The FBID assessment generated approximately $65,000 and the City Council budgeted a contribution of $50,000 to so the total revenue generated was $115,000. The total surplus for Fiscal Year 2023-2024 was 67,726. The unused funds ($50,000) designated by the City for FBID will be returned to the City’s General Fund. The proceeds from the FBID assessment in the amount of $17,726 will be retained in the FBID fund dedicated for FBID purposes.

If the Council elects to note levy an assessment for the upcoming fiscal year, it is anticipated that the District will exhaust all available funds and may not be able to fund all planned activities.

If the Council elects to levy a flat assessment of $25 per business, it is anticipated that approximately $16,500 would be generated by the assessment. When combined with the excess funds from the prior year, it is anticipated that FBID will be able to fund its planned activities.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Take one of the following alternative actions:
a. If the Council confirms its decision to not levy an assessment:
i. Motion to Adopt Resolution No. 15A and read by title only. b. If the Council desires to amend the Annual Report to levy an assessment:
i. Motion to amend the Annual Report for the Fortuna Business Improvement District to recommend that the District levy an assessment for the 2024-2025 fiscal year in the amount of $25 per business and to eliminate the core area designations.

THEN
Business Item 5e

Page 4 of 4 ends

ii. Motion to adopt Resolution No. 15B and read by title only.

ATTACHMENTS
A. Resolution No. 15A, A Resolution Of The City Council Of The City Of Fortuna Declaring Its Intention Not To Levy An Annual Assessment For 2024-2025 Fiscal Year For The Fortuna Business Improvement District B. Resolution No. 15B, A Resolution Of The City Council Of The City Of Fortuna Declaring Its Intention To Levy An Annual Assessment For 2024-2025 Fiscal Year For The Fortuna Business Improvement District And Fixing The Time And Place Of A Public Meeting And A Public Hearing Thereon And Giving Notice Thereof
RESOLUTION NO. 15A

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA

DECLARING ITS INTENTION NOT TO LEVY AN ANNUAL ASSESSMENT FOR 2024-2025 FISCAL YEAR FOR THE FORTUNA BUSINESS IMPROVEMENT

DISTRICT
WHEREAS, in 1990, the City Council of the City of Fortuna established the Fortuna Business Improvement District (“FBID”) under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.); WHEREAS, FBID continues to confer a special benefit on those businesses subject to the annual assessment;
WHEREAS, on May 20, 2024, the Council received and filed the annual report of the FBID advisory board as modified by the City Council;
WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, the City Council, by this Resolution, provides notice of its intent to levy the annual assessment for the 2024-2025 fiscal year, as more particularly set forth below, and of the time and place for a public hearing on the levy of the proposed assessment.

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

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

2. The City Council does not propose a change to the boundaries of the Fortuna Business Improvement District. The boundaries of the district shall remain as previously set by ordinance.

3. The City Council does not intend to levy and collect assessments for the 2024-2025, as detailed in the Annual Report. The City Council finds that the funds remaining from the prior year are sufficient to cover the activities of the District for the upcoming fiscal year.

The Council reserves the right to impose a levy for the subsequent fiscal year.

4. The activities and improvements authorized by section 5.40.070 of the Fortuna Municipal Code shall remain unchanged for the 2024-2025 fiscal year.

5. Reference is made hereto to the Annual Report approved by the Council on May 20, 2024, and on file with the City Clerk for a full and detailed description of the improvements and activities to be provided for the 2024-2025 fiscal year, the boundaries of the area and any benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year.

6. As the City Council does not intend to impose a levy for the 2024-2025 fiscal year, it is not necessary that the Council hold a public hearing on the proposed assessment.

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

PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 3rd day of June, 2024 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
__________________________
Tami Trent, Mayor
ATTEST:
________________________________
Siana L Emmons, City Clerk
RESOLUTION NO. 15B

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR 2024-2025

FISCAL YEAR FOR THE FORTUNA BUSINESS IMPROVEMENT DISTRICT AND

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

HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, in 1990, the City Council of the City of Fortuna established the Fortuna Business Improvement District (“FBID”) under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.); WHEREAS, FBID continues to confer a special benefit on those businesses subject to the annual assessment;
WHEREAS, on May 20, 2024, and June 3, 2024, the Council received and filed the annual report of the FBID advisory board as modified by the City Council; WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, the City Council, by this Resolution, provides notice of its intent to levy the annual assessment for the 2024-2025 fiscal year, as more particularly set forth below, and of the time and place for a public hearing on the levy of the proposed assessment.

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

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

2. The City Council does not propose a change to the boundaries of the Fortuna Business Improvement District. The boundaries of the district shall remain as previously set by ordinance.

3. The City Council is proposing to eliminate the three core area benefit zones within the District.

4. The City Council intends to levy and collect assessments in the flat amount of $25.00 per qualifying business without regard to gross receipts, as detailed in the Annual Report.

5. The activities and improvements authorized by section 5.40.070 of the Fortuna Municipal Code shall remain unchanged for the 2024-2025 fiscal year.

6. Reference is made hereto to the Annual Report approved by the Council on June 3, 2024, and on file with the City Clerk for a full and detailed description of the improvements and activities to be provided for the 2024-2025 fiscal year, the boundaries of the area and any benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year.

7. The time and place for a public hearing to be held by the City Council on the levy of the proposed assessment for the 2024-2025 fiscal year are set for June 17, 2024, at 6:00 PM, at City Hall located at 621 11th Street, Fortuna, CA 95540. The clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City not less than seven days before the public hearing.

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

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

10. If written protests are received from the owners of businesses in the district area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to levy the proposed assessment for the 2024-2025 fiscal year shall be taken for a period of one year from the date of the finding of a majority protest by the City Council.

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

PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 3rd day of June, 2024 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
__________________________
Tami Trent, Mayor
ATTEST:
________________________________
Siana L Emmons, City Clerk
City Manager’s Report

Page 1 of 1 ends

STAFF REPORT
City Manager's Report
DATE: June 3, 2024
TO: Honorable Mayor and City Council Members
FROM: Merritt Perry, City Manager

1. Upcoming Council Meeting Dates
*Special Meeting/Workshop
Monday, June 17, 2024
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall
Monday, July 1, 2024
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall

2. Upcoming Planning Commission Meeting Dates
Tuesday, June 11, 2024
6:00 p.m.

Regular Planning Commission Meeting
Council Chambers at City Hall
Tuesday, June 25, 2024
6:00 p.m.

Regular Planning Commission Meeting
Council Chambers at City Hall

3. Upcoming Measure E Meeting Dates
Tuesday, September 17, 2024
5:30 p.m.

Regular Measure E Meeting
Council Chambers at City Hall
Tuesday, January 21, 2025
5:30 p.m.

Regular Measure E Meeting
Council Chambers at City Hall

4. Upcoming Rohner Community Recreation and Park District (RCRPD) Meeting Dates Wednesday, June 5, 2024
2:30 p.m.

Regular RCRPD Meeting
Council Chambers at City Hall

5. Upcoming Fortuna Business Improvement District (FBID) Meeting Dates Tuesday, June 25, 2024
8:30 a.m.

Regular FBID Meeting
Council Chambers at City Hall

6. Verbal Report

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