Fortuna City Council
October 21, 2024

USACOE Aquatic Resources Spreadsheet
Waters_Name State Cowardin_Code HGM_Code Meas_Type Amount Units Waters_Type NWPR_Determine_Code Latitude Longitude Local_Waterway Strongs Creek CALIFORNIA R2UB RIVERINE Area 0.943 ACRE A2TRIBPER 40.57930200 -124.14867800 Eel River Mill Creek CALIFORNIA R2UB RIVERINE Area 0.613 ACRE A2TRIBPER 40.57829530 -124.14721300 Eel River June 17, 2024
Vincent M. Rizzo, CCIM
Rizzo & Associates LLC
Fortuna Mill Commerce Center
1960 Los Alamos Road
Santa Rosa, CA 95409
Subject: Biological impacts to the Stream System at the ±69-acre Fortuna Mill Commerce Center
City of Fortuna, Humboldt County, California
Dear Mr. Rizzo:

The City of Fortuna has requested an analysis of impacts to riparian vegetation and other sensitive landcover types at the proposed Fortuna Mill Commerce Center project site. For this analysis, we generated a landcover map and overlaid the grading limits to determine if any sensitive habitats would be impacted.

The landcover map is presented as Figure 1.

Seven landcover categories have been identified:
• Gravel
Non-paved or broken pavement with rock surface and scattered weedy vegetation • Pavement
Areas of current or old pavement that is more intact than the gravel surfaces • Ruderal Grassland
Areas of annual weedy species, often growing in the gravel areas • Blackberry Scrub
Himalayan blackberry patches, primarily along the edges of fences and fields. Often growing with other invasive species such as poison hemlock and fennel. • Non-riparian Tree
There are a few areas of the site that support non riparian tree species. These are generally outliers that occur along fencelines or near riparian but are not connected or dependent on the streams.
• Riparian
Trees and shrubs along the two streams on the property that are dependent on the streams.

The most common tree along the streams is red alder. Aroyo willow is the most abundant shrub.
2 • Intermittent Stream
The two intermittent streams on the property are Strongs Creek and Mill Creek. These streams flow for much of the year but can go dry in the fall. They area heavily influenced but the urban setting and runoff is augmented by landscaping and other human induced water sources that discharge into the drainageways.

In addition, the Top of Bank is mapped along the streams. The top of bank is defined here as the break in slope between the creek bank and surrounding terrain. It is generally an abrupt change due to the steep sided banks of the creeks caused by downcutting within the channel. The top of bank is represented in Figure 1 by the dashed blue lines adjacent to Strongs and Mill Creeks.

The conceptual site plan is presented in Figure 2. The site plan is an architectural rendering of the overall project and limits of grading. The only areas where grading is near the top of bank is in the southern area of the site along Mill Creek. This area is also proposed to encroach on the riparian corridor adjacent to Mill Creek in two locations. The only other encroachment into riparian vegetation is along the eastern boundary of the project on the north side of Strongs Creek where the outer edge of Riparian vegetation is adjacent to the proposed fill slope. The nature of the impacts is almost entirely parking and pavement.

The project site plant avoids nearly all the sensitive habitat on the property, which is only associated with the two streams in the southern area. These impacts are minimal and with strong BMP measures, should not significantly affect the biologic function of the stream systems.

Please contact me if you have any questions or comments on this assessment.

Sincerely,
Jeff Glazner
Principal Biologist
£¤101
Strongs Creek
Mill Creek
Strongs Creek
JJ
S Fortuna Blvd
Riverwalk Dr
Newburg Rd
Eel River Rd
Spring St
Dinsmore Dr
S 12th St
Summer St
Alamar Way
Pond St
Kenmar Rd
S 15th St
Lawndale Dr
S 1st St
S 3rd St
S 2nd Ave
Ramp
Redwood Way
S 16th St
Randolph Way
Strongs Creek Dr
12th St
Sunnybrook Dr
Sandy Prairie Ct
Eel River Dr
Renee Way
Meadowbrook Ln
1st St
2nd St
Renner Dr
S 15th St
S Fortuna Blvd
S 1st St
S 3rd St
S 2nd Ave
Ramp

LANDCOVER MAP
Fortuna Mill
±
0 200 400
Feet
Top of Bank
Grading Limits
Study Area (±70 acres)
Non-Riparian Tree Cover (±1 acre)
Blackberry Scrub (±3 acres)
Pavement (±30 acres)
Ruderal Grassland (±7 acres)
Gravel (±22 acres)
Intermittent Stream (±2 acres)
Riparian (±5 acres)
Aerial Source: Salix Consulting, Inc. (07-26-2023)
Map Date: 06-17-2024
City of Fortuna, Humboldt County, CA
Figure 1
Newburg Road
Newburg Road
Meadowbrook Ln
Sunnybrook Dr
Randolph Way
S 15th St
S 15th St
S 16th St
Eel River Road
Eel River Road
KenmarRoad S Fortuna Blvd S Fortuna Blvd S Fortuna Blvd Spring St
2nd Ave
3rd Ave
Figure 2

Business Item 5b

STAFF REPORT
City Council Business Item
DATE: October 21, 2024
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, Interim City Manager
SUBJECT: Professional Services Agreement for a Feasibility Analysis for the Fortuna Enhanced Infrastructure Finance District
STAFF RECOMMENDATION:

Receive staff report and authorize the Interim City Manager to sign a professional services agreement for a Financing District Feasibility Analysis for the Fortuna Enhanced Infrastructure Finance District (EIFD).

EXECUTIVE SUMMARY:

An Enhanced Infrastructure Finance District (EIFD) is a special financing district, a governmental entity comprised of both public and private partners, and distinct from the entity that establishes it.

EIFDs can aid communities in funding a wide and diverse variety of public capital improvement projects and other projects of communitywide significance outlined in state law, by capturing and leveraging property tax increment (PTI) generated within the EIFD area. The EIFD does not impose a new tax. Improvements gained through EIFD funding support future development and result in increased property values. This generates increased property tax revenues from the “base year” which can then be leveraged for additional improvements.

Affected taxing entities are not required to contribute their PTI for the EIFD. Participation in the EIFD is voluntary. Each tax-sharing entity that elects to join the EIFD has the option to allocate up to 100% of its portion of tax increment to the district. Under the EIFD law, school districts are precluded from participation.

On August 19th the City Council authorized the Interim City Manager to explore establishing a Fortuna Enhanced Infrastructure Finance District. Upon further researching an EIFD, it became apparent a consultant is necessary to determine the feasibility of an EIFD. The scope of this project that requires the use of a consultant includes the following:

Evaluation of Boundary and Strategic Considerations
 Property and land ownership and planned/proposed potential future development  Infrastructure needs and estimated costs
 Potential public and private sector partners (e.g., City, County of Humboldt, other affected taxing entities, developers/property owners)
 Overlap with former Redevelopment Agency Project Area boundaries and status of redevelopment dissolution.

Business Item 5b

Preliminary Funding and Financing Analysis
 Potential assessed value generation from future development in the district  Property tax increment funding capacity at select annual benchmarks and cumulatively over the estimated district lifetime(s)
 Initial estimates of potential bonding capacity (to be prepared by Kosmont Financial Services, registered Municipal Advisor)
 Complementary economic development tools and funding resources (e.g., community facilities district [CFD] financing, grants, leverage of City-owned real estate assets, outstanding debt refinancing strategies, zoning incentive programs)  Comparison of potential revenue generation to types and cost of targeted infrastructure improvements
 As related to the potential overlap of proposed district boundaries with former redevelopment agency project areas, analysis of corresponding relevant outstanding enforceable obligations and implications on available revenues.

Governance and Implementation Roadmap
Evaluate and summarize feasible governance and implementation alternatives, including district governing board composition, voting/approval procedures, district formation milestones debt issuance procedures, and estimated timing, to provide potential public and private sector stakeholders with an illustrative “roadmap” for implementation.

City Meeting/Workshop
Coordinate a virtual meeting with City staff, City Council, and other key community stakeholders, such as residents, property owners, and local developers. Preparation and presentation of an overview of relevant tools and feasibility analysis findings. The purpose of the workshop will be to facilitate the education of key stakeholders, determine the priority projects to be funded by the preferred tool(s), and confirm the objectives related to potential implementation.

Three consulting firms were contacted and two submitted proposals to assist in the development and feasibility of an EIFD for Fortuna.

Name of Contractor Base Bid Amount
Kosmont Companies $24,750
Dta Finance $40,000
The lowest cost proposal was submitted by Kosmont Companies with a total price of $24,750.

City staff have confirmed that the proposal received from Kosmont Companies is fully responsive.

Staff recommends awarding the professional services agreement to Kosmont Companies.

Business Item 5b

It should be noted that both proposals received mention additional phases of the project, and staff may return at a later date to complete the EIFD project at such time is warranted. Additional services include:
 Taxing entity (e.g., County) stakeholder outreach for potential partnership  Preparation of Infrastructure Financing Plan (IFP) or other required documentation based on preferred tool(s)
 District formation hearings
 Municipal Advisory activities for potential debt issuances City of Fortuna Infrastructure and Mill District
The City of Fortuna has a number of needed public capital improvement projects, such as improvements to the US 101 interchanges at 12th Street and Kenmar Road. US 101 bisects the City, cutting off the Riverwalk area from downtown and other areas of the City. The existing configuration at both interchanges is confusing, complex, and inefficient and results in excessive vehicle queuing and poor levels of service. In addition, there are limited to no pedestrian and bicycle facilities allowing for safe multi-modal transport, no sense of community/place, and poor visual presentation. The City has significant residential and commercial development potential, but the current configuration limits economic and residential development opportunities. Improvements to these interchanges will allow for the growth of the City, reconnect the City to the Eel River, and allow for safe pathways for bicyclists and pedestrians. In addition, due to existing and expanding traffic volumes, these intersections will become a failure in 20 years, almost universally falling below identified General Plan performance targets.

The cost of interchange improvements is beyond what can be funded by development fees, and the City and region have limited funding available to continue to advance the projects described in this staff report, again these infrastructure projects are pivotal to facilitate the mill site buildout. Through the years, staff have applied for many federal transportation grants that could fund all or a majority of these projects, but have so far been unsuccessful in those applications.

The Mill District, particularly the Fortuna Mill Commerce Center as envisioned in the Mill Site Specific Plan, will be a hub for diverse use in the region. The area will be a well-designed center of commerce with flex space, transportation, general commercial, advanced manufacturing, medical, government, office, multi-family residential, and compatible industrial uses. For the Mill District to be fully actualized, the city’s infrastructure will need to be addressed. The EIFD is one potential funding source that may help address the infrastructure needs in Fortuna.

FINANCIAL IMPACT:

The not to exceed cost for the professional services agreement with Kosmont is $24,750. The funds for this agreement would come from General Fund reserves. The City’s current reserves sit at around $6.0 million which is $1.1 million above the required minimum as set with the City’s reserve policy.

Business Item 5b

RECOMMENDED COUNCIL ACTION:

1. Receive staff report and review Council questions with staff

2. Open Public Comments

3. Close Public Comments

4. Authorize the Interim City Manager to sign a professional services agreement for a Feasibility Analysis for the Fortuna Enhanced Infrastructure Finance District. Voice vote.

ATTACHMENTS:
 Attachment A – Kosmont Professional Services Agreement  Attachment B - Supplemental Budget Request
Kosmont Companies
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1070 Physical Address: 2301 Rosecrans Ave, Ste. 4140 Manhattan Beach, CA 90266 www.kosmont.com El Segundo, CA 90245 September 16, 2024
Amy Nilsen
Interim City Manager
City of Fortuna
621 11th Street
Fortuna, CA 95540
Re: Proposal for Financing District Feasibility Analysis Dear Ms. Nilsen:

Kosmont & Associates, Inc. doing business as Kosmont Companies (“Consultant” or “Kosmont”) is pleased to present this proposal to the City of Fortuna (“City” or “Client”) for Financing District Feasibility Analysis. This proposal serves as an Agreement when executed and returned by Client to Kosmont.

I. BACKGROUND AND OBJECTIVE
Kosmont understands that the City is considering an evaluation of the feasibility of a special purpose financing district, such as an Enhanced Infrastructure Financing District (“EIFD”), to help fund critical infrastructure, such as 101 Freeway interchange improvements at 12th Street and Kenmar Road, to address existing deficiencies and catalyze economic development in targeted opportunity site areas within the City, such as the former Pacific Lumber Company’s Fortuna Mill site.

Kosmont is accordingly proposing the Scope of Services as outlined herein as an initial phase of work focused on feasibility evaluation. Future phases of work through potential district formation would require future authorization by the City, time and budget for which would be outlined for City consideration in advance.

Kosmont is the State leader in Financing District Evaluation and Formation Kosmont is currently assisting over 40 communities with evaluation or formation of financing districts for the funding of infrastructure, housing, and other economic development activities.

Special districts utilized include EIFDs, Community Revitalization and Investment Authorities (“CRIA”), Climate Resilience Districts (“CRD”), and Community Facilities Districts (“CFD”).

Kosmont has facilitated the formation of more EIFDs across the State than any other firm.

Kosmont Financial Services (registered municipal advisor) has successfully structured EIFD tax increment-related debt issuances, with more issuance activity underway.

City of Fortuna
Proposal for Financing District Feasibility Analysis
September 16, 2024
Kosmont Companies 2 | Page
(424) 297-1070
www.kosmont.com
II. SCOPE OF SERVICES
Approach to Tasks: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject by. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.

Task 1: Evaluation of Boundary and Strategic Considerations Kosmont will coordinate a virtual kickoff meeting with City staff to discuss potential economic development opportunity sites for evaluation with respect to funding and financial tools of interest.

Based on discussions with City staff, Kosmont will analyze key strategic implementation considerations, including:
a) Property / land ownership and planned / proposed / potential future development (based on information to be provided by the City)
b) Infrastructure needs and estimated costs (to be provided by the City) c) Potential public and private sector partners (e.g., City, County of Humboldt, Fortuna Fire Protection District, other affected taxing entities, developers / property owners) d) Overlap with former Redevelopment Agency Project Area boundaries and status of redevelopment dissolution.

Task 2: Preliminary Funding and Financing Analysis
Kosmont will prepare a preliminary funding and financing analysis, including preliminary tax increment analysis, as appropriate, reflecting potential future development and potential public and private sector partners. The analysis will identify:
a) Potential assessed value generation from future development in the district b) Property tax increment funding capacity at select annual benchmarks and cumulatively over the estimated district lifetime(s)
c) Initial estimates of potential bonding capacity (to be prepared by Kosmont Financial Services, registered Municipal Advisor)
d) Complementary economic development tools and funding resources (e.g., community facilities district [CFD] financing, grants, leverage of City-owned real estate assets, outstanding debt refinancing strategies, zoning incentive programs) e) Comparison of potential revenue generation to types and cost of targeted infrastructure improvements
f) As related to potential overlap of proposed district boundaries with former redevelopment agency project areas, analysis of corresponding relevant outstanding enforceable obligations and implications on available revenues.

Task 3: Governance and Implementation Roadmap
Based on the preferred tool(s) identified by the City based on previous Task findings, Kosmont will evaluate and summarize feasible governance and implementation alternatives, including district governing board composition, voting / approval procedures, district formation milestones, City of Fortuna
Proposal for Financing District Feasibility Analysis
September 16, 2024
Kosmont Companies 3 | Page
(424) 297-1070
www.kosmont.com
debt issuance procedures, and estimated timing, in order to provide potential public and private sector stakeholders with an illustrative “roadmap” for implementation.

Task 4: City Meeting / Workshop
Kosmont will coordinate a virtual meeting with City staff, City Council, and/or other key community stakeholders, such as residents, property owners, and/or local developers. Kosmont will prepare and present an overview of relevant tools and feasibility analysis findings. The purpose of the workshop will be to facilitate education of key stakeholders, but also to vet and confirm potential priority projects to be funded by preferred tool(s) and to confirm the objectives related to potential implementation.

Potential Future (Phase Two) Services
• Taxing entity (e.g., County) stakeholder outreach for potential partnership • Preparation of Infrastructure Financing Plan (“IFP”) or other required documentation based on preferred tool(s)
• District formation hearings
• Municipal Advisory activities for potential debt issuances to be provided by Kosmont Financial Services, registered Municipal Advisor.

III. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Agreement and project data outlined below. A summary PowerPoint presentation with separate analysis detail exhibits characterizing findings from Tasks 1 through 3 is anticipated to be delivered within eight (8) to twelve (12) weeks from assignment authorization. Timing of Task 4 meeting assistance will be contingent on stakeholder availability.

Client will provide Consultant with existing project data, including relevant planning documentation (e.g., General Plan, draft specific plan(s), previous market studies), current project proposals and/or site plans, and information on potential infrastructure projects with estimated range of costs, as available.

IV. COMPENSATION
Compensation for Tasks 1 through 4 is estimated at $24,750 for professional services (hourly) fees at Consultant’s billing rates as shown on Attachment A. Future increases in budget will require approval by Client in advance. Budget may be increased by Client at any time.

Consultant anticipates a single consolidated round of Client comments and revisions on draft work product before Kosmont provides a final version of work product. If necessary, additional rounds of comments and revisions can be accommodated on an hourly basis.

Consultant’s attendance or participation at any publicly noticed meeting apart from the Task 4 meeting identified, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other), as requested by Client is in City of Fortuna
Proposal for Financing District Feasibility Analysis
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addition to compensation for Tasks 1 through 4 and will be billed at the professional services (hourly) fees as shown on Attachment A.

Services will be invoiced monthly at Consultant’s standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for outof-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations.

Consultant will also include in each invoice an administrative services fee to cover in-house copy, fax, telephone and postage costs equal to four percent (4.0%) of Consultant’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum.

For the convenience of Kosmont’s clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment:

1. Fill in the “Make a Payment” form when you go to the link (https://kosmont.paidyet.com), or

2. Call Kosmont Companies’ accounting desk (Kelly Aguilar; (424) 297-1071) to make a credit card payment
Consultant is prepared to commence work upon receipt of executed Agreement.

DISCLOSURE: Compensation for possible future transaction-based services or brokerage services.

The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation for such services. This disclosure is not intended to commit the Client.

When assignments involve real estate/property brokerage services, such transaction-based services are typically provided by Kosmont Real Estate Services, Inc. dba Kosmont Realty (“KR”) is licensed by the State of California Department of Real Estate (License# 02058445).

Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value (“BOV”) services on a fixed fee basis.

When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Financial Services (KFS). KFS is an independent Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.

City of Fortuna
Proposal for Financing District Feasibility Analysis
September 16, 2024
Kosmont Companies 5 | Page
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www.kosmont.com
SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators.

V. OTHER PROVISIONS
A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full.

B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge.

The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery of the arbitration award. Judgment upon the award rendered shall be final and non-appealable and may be entered in any court having jurisdiction.

C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered.

D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms execute this Agreement.

E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.

F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.

G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

H. Entire Agreement; Amendments and Waivers. This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related City of Fortuna
Proposal for Financing District Feasibility Analysis
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hereto are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.

I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.

J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph.

K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision herein.

L. Governing Law. The statutory, administrative and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement.

M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.

N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature.

O. Disclaimer. Consultant’s financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client’s reliance on Consultant’s analysis must consider the foregoing.

City of Fortuna
Proposal for Financing District Feasibility Analysis
September 16, 2024
Kosmont Companies 7 | Page
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www.kosmont.com
Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client’s understanding and by execution of this Agreement, acknowledgement that Consultant’s services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between the Client and Consultant.

Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.

P. Limitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Consultant has received from Client.

Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; riots; wide-spread power failures and wide-spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay.

R. Expiration of Proposal for Services. If this Agreement is not fully executed by the parties within sixty (60) days from the date of this letter, this proposal shall expire.

S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal advice, or legal opinion. Client should seek independent legal counsel on matters for which Client is seeking legal advice.
[ signature page follows ]
City of Fortuna
Proposal for Financing District Feasibility Analysis
September 16, 2024
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www.kosmont.com
VI. ACCEPTANCE AND AUTHORIZATION
If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to Kosmont Companies. Upon receipt of both signed contracts, we will return one fully executed original for your files. Kosmont will commence work upon receipt of executed Agreement.

Read, understood, and agreed to this
____ Day of _______________ 2024

City of Fortuna Kosmont & Associates, Inc.
doing business as “Kosmont Companies”
By: _________________________ By: _________________________ (Signature) (Signature)

Name: Name: Ken K. Hira
(Print Name)

Its: Its: President
(Title)

City of Fortuna
Proposal for Financing District Feasibility Analysis
September 16, 2024
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(424) 297-1070
www.kosmont.com

ATTACHMENT A
Kosmont Companies
2024 Public Agency Fee Schedule
Professional Services
Chairman & CEO $475.00/hour
President $395.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $370.00/hour Vice President/Project Advisor $250.00/hour
Senior Project Analyst $195.00/hour
Project Analyst/Project Research $175.00/hour
Assistant Project Analyst/Assistant Project Manager $150.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 80.00/hour
Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
• Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.

Rates shall remain in effect until December 31, 2024.

SECTION 1.

FIRM QUALIFICATIONS
KOSMONT AND ASSOCIATES, INC. DBA KOSMONT COMPANIES - www.kosmont.com California Corporation - Established 1986 – 36+ years in Business Physical/Headquarters: 2301 Rosecrans Avenue, Suite 4140, El Segundo, CA 90245 Mailing: 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 Kosmont provides services to Clients virtually from satellite locations, in-person, and from the El Segundo headquarters across the Western U.S.

Kosmont Companies (“Kosmont”), a certified Minority Business Enterprise (“MBE”) and certified Small Business Enterprise (“SBE”), is a real estate and economic development services firm offering a full range of real estate and financial advisory, economic development strategies/plans, retail/business strategies, project finance, transaction structuring, negotiations, market analysis, feasibility studies, special district analysis, community outreach/project implementation services for both the public and private sectors. Kosmont Companies was founded in 1986 by Larry J.

Kosmont, Chairman and CEO, and is nationally recognized. With decades of advisory services, Kosmont has assisted hundreds of public agencies in their quest for services and successful public private projects.

Kosmont is well acquainted with the Sacramento Valley’s local and regional economic context, having previously provided services for the Counties of Sacramento and Sutter and Cities of Citrus Heights, Folsom, Vacaville, and Fairfield to name a few. Our experience in and around the area will enable us to ramp up expeditiously and add significant value on this assignment.

What sets Kosmont apart is our understanding of how economics relates to future project shaping, as well as our understanding of both the public and private sectors. Kosmont will integrate our established ability, strengths, seasoned experience, and hands-on approach to deliver the requested consulting services. Rather than just write reports, Kosmont believes in a comprehensive approach to advisory services that Analyzes, Strategizes, and Implements. A brief highlight of our services is as follows.

Economic Development Consulting Services
• Economic Development Strategies (EDSP/CEDS)
• Kosmont Retail NOW!® Platform
• Special Districts (EIFD, CFD, CRIA, IRFD, CRD)
• Downtown Revitalization
• Asset Management Plans
• Developer Selection RFQ/RFP & DDA/ENA
• Sustainable Economic Development
• ROPS & RDA Dissolution Advisory Services
Land Use/Zoning and Community Planning Services
• Development Opportunity Reserve (D.O.R.)®
• Sales Tax Assessment Revenue (STAR*)®
• Other Zoning & Implementation Strategies for Economic Development Kosmont’s Mission Statement is the pursuit of four pillars of strength: Innovation, Integration, Integrity and Intelligence. We are on the cutting edge of products and services, we achieve financial success for our public and private sector clients, we are committed to community prosperity and quality of life, and our professionalstandards are of the highest caliber.
2 KOSMONT COMPANIES FIRM OVERVIEW
Planning and Development Services
• Project Evaluation
• Project Financials & Pro-Forma Assessment
• Property Acquisition/Leasing
• Land Use/Entitlements
• Due Diligence Reports
Real Estate Economics & Financial Advisory Services
• Fiscal & Economic Impacts
• Project Economics, Highest & Best Use (HBU) & Market
Studies
• Public & Private Financing Structures
• Affordable Housing (Pro Forma, Housing Element,
Negotiations, Feasibility)
SECTION 1.

FIRM QUALFICIATIONS

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Kosmont is a full-service firm which also provides various integrated services through Kosmont Realty (“KR”) and Kosmont Financial Services (“KFS”). KR is a full service and licensed real estate brokerage firm and KFS is a public finance firm providing financial advisory services, and is registered with the SEC.

In the aggregate, Kosmont Companies, KR, and KFS have extensive experience working with local and State government on real estate transactions between public agencies and private parties and structured project financing involving public and private funding sources. Collectively, Kosmont provides public agencies broad access to real estate consultants and brokers, public sector deal structure experts, and public-private financial advisors. We know of no other integrated set of companies that can provide a full complement of Economic Development Services, Real Estate Brokerage, and Municipal Advisory. Our diverse roles and experience in the real estate and financial industries have made us highly adaptable and skilled for this type of assignment. The chart below represents Kosmont’s wide-array of integrated services.
3 SECTION 1.

FIRM QUALFICIATIONS

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
• California City Management Foundation (CCMF)
Kosmont Companies is the proud recipient of the
“2022 CCMF Corporate Sponsor of the Year Award”
• Southern California Association of Governments (SCAG) Sustainability Award “5/2019 – City of Placentia“
• Mr. Larry J. Kosmont, CRE® is the honored recipient of the “2016 California Business Properties Association (CBPA) Champion of the Industry Award” ( for his service in real estate and economic development )
• California Association for Local Economic Development (CALED) Awards of Excellence Program
“2014 Award of Excellence in Economic Development Partnerships South Gate azalea Project”
• California Association for Local Economic Development (CALED) Awards of Excellence Program
“2017 Award of Excellence for Economic Development Partnerships – Redondo Beach Marine Ave Hotels Project ”
• L.A. Business Journal Latino Business of the Year Awards “2015 Small Private Latino Business of the Year Award”
• Mr. Larry J. Kosmont, City of Seal Beach (1980) is a proud recipient of the John H. Nail Memorial Award
( Awarded annually by the City Managers Department
of the League of California Cities )
KOSMONT COMPANIES & LARRY J. KOSMONT ARE PROUD RECIPIENTS OF THE FOLLOWING AWARDS:

Larry J. Kosmont, Chairman
and CEO of Kosmont
Companies accepting the
CBPA Champion of the
Industry Award for his service
in real estate and economic
development. Pictured with Pat
Donahue, Chairman and CEO
of Donahue Schriber (left) and
Rex Hime, President & CEO of
CBPA (right).
4 SECTION 1.

FIRM QUALFICIATIONS

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Exhibit 1: Kosmont Special Districts (TIF / EIFD / CRIA) in Progress Statewide 5 SECTION 1.

FIRM QUALFICIATIONS

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Exhibit 1 Continued: Sample of Kosmont-Led District Progress by Stage of Implementation (Table and Legend Correspond to Map on Previous Page)
Fully Formed In Formation Process Under Evaluation
6 SECTION 1.

FIRM QUALFICIATIONS
Jurisdiction Purpose
Apple Valley Industrial and housing supportive infrastructure Banning (CRIA) Downtown revitalization, industrial infrastructure Barstow Industrial and housing supportive infrastructure Brentwood Housing, employment, and transit-supportive infrastructure Buena Park Mall reimagination, housing-supportive infrastructure Carson + L.A. County Remediation, affordable housing, recreation Citrus Heights Mall reimagination
Covina Downtown housing and blended use supportive infrastructure Fairfield Downtown, housing, and transit-supportive infrastructure Fresno Downtown, housing and transit-supportive infrastructure Fresno County Industrial and commercial supportive infrastructure Humboldt County Coastal mixed-use and energy supportive infrastructure Inglewood Transit-related infrastructure
Imperial County Industrial, renewable energy, and housing and infrastructure La Verne + L.A. County Housing and transit-supportive infrastructure Long Beach Economic empowerment and affordable housing
Los Angeles (Downtown, San Pedro, other) Affordable housing and transit-supportive infrastructure Los Angeles County Uninc. West Carson Housing / bio-science / tech infrastructure Madera County (3 Districts) Water, sewer, roads and other housing infrastructure Modesto + Stanislaus County Downtown, housing, and recreation infrastructure Mount Shasta Rural brownfield mixed-use infrastructure
Napa Downtown, housing, tourism supportive infrastructure Oakland Affordable housing and infrastructure
Ontario Industrial and housing infrastructure
Palmdale + L.A. County Housing and commercial infrastructure Pittsburg Housing, commercial, and tech park infrastructure Placentia + Orange County Housing and TOD infrastructure Rancho Cucamonga Blended use and connectivity infrastructure Redlands Education related and blended use infrastructure Redondo Beach + L.A. County Parks / open space, recreation infrastructure Riverside Affordable housing and infrastructure
Sacramento County (Unincorporated) Industrial / commercial supportive infrastructure San Rafael Blended-use and climate resilience infrastructure Sanger Housing and commercial supportive infrastructure Santa Cruz Downtown, blended use, and climate resilience infrastructure Santa Rosa + County of Sonoma Downtown investment, affordable housing, hospitality Selma Water, sewer, and other housing supportive infrastructure Vacaville Housing and business park infrastructure
Yucaipa Housing and commercial infrastructure

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com

KOSMONT REFERENCES

1. City of Napa EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Vincent Smith, Director of Community Development, City of Napa, 707-257-9530, [email protected])

2. County of Humbolt EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Scott Adair, Director of Economic Development County of Humboldt, 707-599-1205, [email protected])

3. City of Mount Shasta + County of Siskiyou EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference: Tonya Dowse, Executive Director, Siskiyou County Economic Development Corporation, 530-842- 1638, [email protected])

4. City of Fresno EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Nelson Esparza, District 7 Councilmember, [email protected], (559) 621-8000)

5. County of Fresno Unincorporated Business and Industrial Park EIFD Evaluation and General Fund Fiscal Impact Analysis (Reference: Will Oliver, President/CEO, Fresno County Economic Development Council, 559-476-2518, [email protected])

6. County of Madera EIFD Evaluation and Annual Administration (Reference: Matthew Treber, Chief of Development Services, County of Madera, 559-675-7821, [email protected])

7. City of Pittsburg EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference: Garrett Evans, City Manager, City of Pittsburg, 925-252-4850, [email protected])

8. City of Los Angeles Downtown EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference:

Blair Miller, Economic and Workforce Development Department, City of Los Angeles, 213-744-7232, [email protected])

9. City of Los Angeles San Pedro EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference:

Jenny Scanlin, Chief Development Officer, Housing Authority of the City of Los Angeles, 213-252-2680, [email protected])

10. City of La Verne + County of Los Angeles EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Eric Scherer, Director of Community Development, City of La Verne, 909-596-8706, [email protected])

11. City of Placentia EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Damien Arrula, City Administrator, City of Placentia, 714-993-8171, [email protected]) 7 SECTION 1.

FIRM QUALFICIATIONS

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com

KOSMONT REFERENCES (CONTINUED)
8 SECTION 1.

FIRM QUALFICIATIONS

12. City of Carson + County of Los Angeles EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Saied Naaseh, Director of Community Development, City of Carson, 310-952-1770, [email protected])

13. County of Los Angeles Unincorporated West Carson EIFD Evaluation, Formation, and General Fund Fiscal Impact Analysis (Reference: Robert Moran, Principal Analyst, Los Angeles County Chief Executive Office, (213) 974- 1130, [email protected])

14. City of Rancho Cucamonga EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Noah Daniels, Director of Finance, City of Rancho Cucamonga, 909-774-2402, [email protected])

15. City of Covina EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Chris Marcarello, City Manager, City of Covina, 626-384-5410, [email protected])

16. County of Los Angeles Metropolitan Transportation Authority (METRO) EIFD Feasibility Analysis (References:

Craig Hoshijima, Executive Officer of Countywide Planning & Development, 213-418-3384, [email protected] and Nick Saponara, Executive Officer of Transit Oriented Communities, 213-922-4313, [email protected])

17. County of Imperial EIFD Evaluation and General Fund Fiscal Impact Analysis (Reference: Rebecca TerrazasBaxter, Assistance County Executive Officer, County of Imperial, 442-265-1014, RebeccaTerrazas[email protected]) SECTION 2.

MEET THE TEAM

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Mr. Ken K. Hira serves as President for Kosmont Companies. An expert in real estate and economic development, Mr. Hira brings over 30 years of varied experience in virtually every aspect of acquisition, entitlement, development, financing, asset management, disposition, downtown revitalization, and strategic plans. His strengths include a keen understanding of retail trends, business retention/attraction, negotiating public-private transactions and implementing blended-use projects that revitalize communities and assist in economic development/tax generation programs.

A former Executive Vice President and mixed-use developer, Mr. Hira managed a portfolio of over $100 million of retail sites, while operating the commercial division of the company. Prior to this, as Managing Director of Acquisitions for a development company and Vice President of Development at a development firm, he evaluated and underwrote hundreds of acres of land, successfully captured and negotiated anchor tenant commitments creating $60 million of value in ground-up development and redevelopment and was responsible for 800,000 square feet of retail entitlement, design and development. As Vice President of a shopping center company based in San Diego (6 years), Mr. Hira entitled one million square feet of retail development projects, as well as led the acquisition of 24 neighborhood and community shopping centers, totaling 3.3 million square feet and valued at $375 million, and organized a $287 million recapitalization.

LICENSES/AFFILIATIONS: Mr. Hira is an active volunteer leader of the Innovating Commerce Serving Communities (ICSC) (formerly International Council of Shopping Centers). He was nominated and serves as the Co-Chair of the ICSC Community Advancement Board, nationally advocating public-private partnerships, while previously serving as the ICSC Western Division P3 Retail Co-Chair, Southern California State Director, Program Committee Chair and Alliance Co-Chair.

Project Role:

Principal Advisor
Years with Firm: 16+
Years of Experience: 30+
Education:

Bachelor of Economics
and Business, UCLA
Ken K. Hira President
10 RELEVANT EXPERIENCE:

Throughout his career, Mr. Hira has managed hundreds of public and private sector consulting assignments. A few of the more recent projects within the last 10 years are summarized below:
• Confidential Client, San Jose, CA – EIFD and CFD Evaluation • City of Fresno, CA – Downtown / Blackstone Bus Rapid Transit Corridor EIFD Formation • City of Daly City – Market analysis, Public Private Transaction structuring for key opportunity sites • City of Capitola – Mall Reimagination and developer negotiation assistance • City of Indian Wells, CA – EIFD Evaluation and County Partnership Negotiations • City of Seaside, CA – EIFD and Community Revitalization and Investment Authority (CRIA) Evaluation • City of Laguna Hills – Mall Reimagination, fiscal impact analysis, development agreement • City of Agoura Hills - Agoura Village Specific Plan Feasibility Analysis • City of Buellton, CA – Econ Dev / Specific Plan for Downtown with Development Opportunity Reserve (D.O.R.)® • City of El Cajon, CA – EIFD Evaluation
• City of Norwalk, CA - Economic Development Opportunities Plan and implementation services • City of San Rafael (ongoing) – Economic Development Strategic Plan including Mall evaluation • City of Pacifica (ongoing) – Economic Opportunities Study SECTION 2.

MEET THE TEAM
RELEVANT EXPERIENCE: Samples within the last 10 years are summarized below:
• City of La Verne/County of L.A. – Enhanced Infrastructure Financing District (EIFD) Formation + Debt Issuance • City of Placentia/County of Orange, CA – EIFD Formation • Southern California Associated of Governments (SCAG) - Housing and Sustainability District Technical Advisor • County of Humboldt - Samoa Peninsula EIFD Formation
• City of Fresno, CA – Downtown / Blackstone Bus Rapid Transit Corridor EIFD Formation • Private Sector Client, San Luis Obispo, CA – Development Agreement Negotiation, Infrastructure Financing Plan Preparation, Community Facilities District Formation
• Private Sector Client, Simi Valley, CA – Market / Highest and Best Use and Financial Feasibility Analysis
• City of Azusa, CA – EIFD Evaluation
• City of Brentwood, CA – EIFD Evaluation
• City of Carson + L.A. County, CA – EIFD Evaluation
• City of Duarte, CA – EIFD Evaluation
• City of El Cajon, CA – EIFD Evaluation
• City of El Segundo + L.A. County, CA – EIFD Evaluation • City of Grand Terrace, CA – EIFD Evaluation
• City of Indian Wells, CA – EIFD Evaluation
• City of Los Angeles, CA – Downtown – EIFD Evaluation
• County of Madera, CA – EIFD Evaluation and EIFD Annual Report Preparation
• City of Napa, CA – EIFD Evaluation City of Ontario,
CA – EIFD Evaluation
• City of Pittsburg, CA – EIFD Evaluation
• City of Redondo Beach + L.A. County, CA – EIFD
Evaluation
• City of Richmond, CA – EIFD Evaluation
• City of Riverside, CA – EIFD and Community
Revitalization and Investment Authority (CRIA)
Evaluation
• Private Sector Client, Sacramento County, CA –
EIFD Evaluation
• City of Santa Fe Springs, CA – EIFD Evaluation
• City of Seaside, CA – EIFD and CRIA Evaluation
• City of South Gate, CA EIFD Evaluation
Project Role:

PROJECT MANAGER
Years with Firm: 13+
Years of Experience: 16+
Education:

Bachelors of Science,
Mechanical Engineering,
Massachusetts Institute
of Technology
Mr. Joseph Dieguez is a Senior Vice President with Kosmont Companies serving public and private sector clients primarily through market and economic analyses, strategic planning, and real estate development advisory. His recent work includes special / tax increment district implementation (including Enhanced Infrastructure Financing Districts and Community Revitalization and Investment Authorities), market supply and demand analysis, fiscal impact and economic benefit studies, financial feasibility and development pro forma evaluation, and property reuse strategies for municipalities, real estate investment and development firms, and multiple Fortune 500 clients.

Prior to joining Kosmont Companies, Mr. Dieguez served as a senior analyst at a real estate investment and development firm and as an analyst at a top management consulting firm, responsible for industry, market, portfolio and property-level analysis, negotiations, and transaction execution support for investment banks, private equity firms, and other financial institution clients. Joseph was previously an assistant project manager at a construction management firm, where he assisted with RFQ/P development and project implementation.

LICENSES/AFFILIATIONS:

Mr. Dieguez is a licensed Real Estate Salesperson, licensed by the State of California Department of Real Estate (No. 01893926). He is also a Municipal Advisor Representative having achieved the MSRB Series 50 professional qualification and is duly registered with the SEC/MSRB.

Joseph Dieguez Sr. Vice President
11 SECTION 2.

MEET THE TEAM
• City of La Verne/County of Los Angeles - Enhanced Infrastructure Financing District Formation • Southern California Associated of Governments (SCAG) - Housing and Sustainability District Technical Advisor • County of Los Angeles, Chief Executive Office – Opportunity Zone Policy • City of Redondo Beach - Enhanced Infrastructure Financing District for AES power plant regional park, including Prop 68 State Parks grant
• County of Los Angeles Second District / Southern California Association of Governments – West Carson Enhanced Infrastructure Financing District
• County of Los Angeles First District / Southern California Association of Governments – LA County / USC Medical Center Tax Increment Financing Feasibility Analysis
• Friends of the Hollywood Central Park – Revenue and Feasibility Analysis 12 SECTION 2.

MEET THE TEAM
RELEVANT EXPERIENCE:

Throughout her career, Ms. Williams has managed hundreds of public and private sector consulting and banking assignments, the majority of which in the SCAG region and many of which involving state and local housing policies and programs. A few samples within the last 10 years are summarized below:
• City of Azusa – EIFD Evaluation
• City of Brentwood – EIFD Evaluation
• City of Carson + L.A. County – EIFD Evaluation
• City of Duarte – EIFD Evaluation
• City of El Segundo + L.A. County – EIFD Evaluation
• City of Los Angeles – Downtown – EIFD Evaluation
• City of Pittsburg – EIFD Evaluation
Project Roles:

Financing Analysis,
Stakeholder Outreach
Years with Firm: 8+
Years of Experience: 25+
Education:
- M.B.A., Finance,
University of Michigan
Ross School of Business
- M.A., Urban Planning,
UCLA
- B.A., Public Policy,
Stanford University
Association:

Ms. Williams was elected
as a Councilmember to
the City of Pasadena in
2020 and represents
District 2.

Ms. Felicia Williams is a Senior Vice President at Kosmont Companies and assists municipal clients with a comprehensive approach to economic development and climate action, in addition to identifying funding sources for key projects. She has a background in public finance, economic development, and sustainability. Specifically for Kosmont clients, Ms. Williams provides financial feasibility analysis for various types of infrastructure and tax increment financing districts, fiscal impact analysis, Specific / General Plan land use analysis, and Climate Action Plan implementation and project financing.

Felicia Williams Senior Vice President
Ms. Williams has worked with local and State governments for 15 years in municipal finance. This experience includes individual cities throughout the SCAG territory, Los Angeles and Riverside Counties, as well as local Councils of Government in the South Bay, Western Riverside, Gateway Cities, and San Gabriel Valley. Additionally, Ms.

Williams has worked with State of California agencies on environmental financing programs and has served on policy advisory committees for State Senators and Assemblymembers. With broad experience in finance, public policy, and environment, she understands the policy underlying the financing programs to provide comprehensive solutionsin key areas of SCAG’s focus.

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
SECTION 2.

MEET THE TEAM
13 Mr. Fernando Sanchez is a Vice President with Kosmont Companies assisting public and private sector clients with market and economic analyses, strategic planning, and real estate development advisory. His recent work includes market supply and demand analysis, prioritization of strategic opportunity sites for retail and future development, analysis of potential development uses, and geospatial analysis of boundaries and funding and financing feasibility studies of new infrastructure financing districts, including Enhanced Infrastructure Financing Districts (EIFDs).

Prior to joining Kosmont Companies, Mr. Sanchez also worked as an Analyst for Entertainment and Culture Advisors, a Los Angeles-based economic consulting firm specializing in the entertainment and attractions industry. Other previous experience includes working as an Analyst and Project Manager for JDT International Inc., a residential real estate developer in Philadelphia, and working as a Transportation Planner with the City of Philadelphia Mayor’s Office of Transportation and Utilities.

LICENSES/AFFILIATIONS:

Mr. Sanchez is a member of the American Planning Association and the Urban Land Institute. He also serves as the Treasurer of the Princeton Club of Southern California.

LANGUAGES:

Mr. Sanchez is fluent in English and Spanish.

RELEVANT EXPERIENCE:

Recent projects (General/Specific Plans and EIFD/CRIA Evaluations) are summarized below:
• City of Agoura Hills (Agoura Village Specific Plan Feasibility Analysis) • City of Brentwood (Enhanced Infrastructure Financing District (“EIFD”) Evaluation; Contra Costa County General Fund Fiscal Impact Analysis)
• City of Buellton (Market and Economic Analysis; Economic Development Plan / Specific Plan for Avenue of Flags Downtown District with Development Opportunity Reserve (D.O.R.)®) • City of Napa (EIFD Evaluation and Formation; General Fund Fiscal Impact Analysis) • City of Norwalk (Economic Development Opportunities Plan) • City of Ontario (EIFD Evaluation)
• City of Santa Barbara (Retail Market Study and Economic Development Strategy; Downtown Revitalization) • City of Seaside (EIFD and CRIA Evaluation)
• City of St. Helena (Highest and Best Use Analysis; Asset Strategy; Downtown Revitalization) • City of Watsonville (EIFD Evaluation)
• City of Thousand Oaks (Economic Development Specific Plan) Project Role:

GIS/Mapping, Project
Analytics, Research
Years with Firm: 9+
Years of Experience: 10+
Education:
- Master of City Planning,
Univ. of Pennsylvania,
(focus: public and private
real estate development)
- Bachelor of Arts,
Princeton University
Fernando Sanchez Vice President

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
LICENSES/AFFILIATIONS:

Ms. Ontiveros is a Municipal Advisor Representative having achieved the MSRB Series 50 professional qualification.

RELEVANT EXPERIENCE:

A few of her more recent projects are summarized below:
• City of Napa EIFD Evaluation and Formation
• City of Fairfield EIFD Evaluation
• City of Fresno EIFD Evaluation and Formation
• City of Mount Shasta EIFD Evaluation
• City of Rancho Cucamonga EIFD Evaluation
• City of Sanger EIFD Formation
• County of Madera EIFD implementation and annual reporting • County of Madera EIFD base year and tax increment audit • City of Placentia and County of Orange EIFD implementation and annual reporting • Menlo Park Fire Protection District – Tax Increment Projections • City of Torrance – Tax Increment Projections
• City of Thousand Oaks – Tax Increment Projections
• City of Napa – Tax Increment Projections
• City of Roseville – Tax Increment Projections
• City of Clovis – Annual Annexation Review and County Fire Transition Fee Calculations
Ms. Stephanie Ontiveros is a Vice President with Kosmont Companies and has extensive public agency consulting experience in economic development, redevelopment and finance. Prior to joining Kosmont, Ms. Ontiveros served as a financial consultant to over 90 cities, agencies and special districts throughout California, specializing in Property Tax and Tax Increment analysis, revenue evaluation, forecasting and budgeting. Ms. Ontiveros has conducted numerous special analysis projects for various city specific needs.

Project Role:

Tax Analysis Specialist
Years with Firm: 2+
Years of Experience: 26+
Education:
- Bachelor of Science,
Business Administration
– Finance, California
State University, Fresno
Stephanie Ontiveros Vice President
14 SECTION 2.

MEET THE TEAM
SECTION 3.

FIRM EXPERIENCE

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
16 SECTION 3.

FIRM EXPERIENCE
Kosmont is currently retained by Metro as part of a team with Morgner Construction Management to provide Value Capture Support advisory services to cities and the County of Los Angeles in connection with current and proposed Metro transit stations across the Metro’s various transit corridors (e.g., WSAB, Foothill, ESP2).

Kosmont is providing station-area specific value capture analysis regarding the feasibility and magnitude of potential tax increment financing (TIF) mechanisms such as Enhanced Infrastructure Financing Districts (EIFDs) in order to assist cities and the County is meeting their respective local cost match requirements and to support their investment in first/last-mile infrastructure to support TOD adjacent to station areas. Kosmont is additionally leveraging its relationships and experience with the various affected municipalities across the County (and experience with municipalities across the state regarding transit value capture) to demonstrate and communicate the value of collaborating with Metro in station area Value Capture matters.

CLIENT: LOS ANGELES COUNTY METROPOLIATN TRANSPORTATION AUTHORITY CONTACT: Craig Hoshijima, Executive Officer, Strategic Financial Planning (714) 307-9437 / [email protected]
PROJECT DATES: February 2022 – Present
LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO):

Systemwide Value Capture Support Advisory
COUNTY OF HUMBOLDT: Samoa Peninsula Enhanced Infrastructure Financing District (EIFD) Formation
Kosmont was retained by the County of Humboldt for technical advisory related to the formation of the Samoa Peninsula Enhanced Infrastructure Financing District (EIFD) in unincorporated County jurisdiction. The EIFD is approximately 2,400 acres encompassing a mix of potential future land uses on significantly underutilized properties. Kosmont providing analysis and peer review of the guiding Infrastructure Financing Plan, tax increment revenue projections, fiscal impact and economic benefit analysis, staff reports, resolutions, and required public mailing, newspaper, and website notices.

SAMPLE WORK PRODUCT: Samoa Peninsula EIFD
17 COUNTY OF SACRAMENTO: Metro Air Park Enhanced Infrastructure Financing District (EIFD) Formation
Kosmont was retained by Metro Air Park LLC, the property owner consortium representing approximately 1,892 acres of land immediately east of the Sacramento International Airport (SMF). Kosmont prepared an analysis of the feasibility of an Enhanced Infrastructure Financing District (EIFD) in the unincorporated County jurisdiction. Kosmont prepared tax increment revenue projections, General Fund net fiscal impact and economic analysis, and participated in numerous briefings with County executive staff and the County Supervisors. Kosmont efforts resulted in the formation of the Metro Air Park EIFD in April 2021.

SECTION 3.

FIRM EXPERIENCE
• 1,892 acres (approx. 0.30% of County total 636,000 acres) • 22 million+ SF in development potential
• $4.6 billion+ in assessed value creation over next 30 years • EIFD funding relieved infeasible impact fee program, will provide $200M over ~35 years
18 CITY OF NAPA: Enhanced Infrastructure Financing District (EIFD) Formation Kosmont was retained by the City of Napa for technical advisory related to the formation of the City of Napa Enhanced Infrastructure Financing District (EIFD). The EIFD encompasses approximately 840 acres including a mix of potential future land uses on significantly underutilized properties. Kosmont prepared the governing Infrastructure Financing Plan (IFP), tax increment revenue projections, fiscal impact and economic benefit analysis, staff reports, resolutions, and required public mailing, newspaper, and website notices. Kosmont lead presentations to the City Council, the EIFD Public Financing Authority (PFA), and County staff and elected officials regarding the proposed activities of the EIFD. The Napa EIFD was successfully formed as the first EIFD in Napa County on July 6, 2022.

SECTION 3.

FIRM EXPERIENCE
SAMPLE WORK PRODUCT: Link to Napa EIFD website (see Infrastructure Financing Plan and Appendices) https://www.cityofnapa.org/1171/Enhanced-Infrastructure-Financing-Distri

LETTER OF RECOMMENDATION
19 SECTION 3.

FIRM EXPERIENCE
La Verne Crossings – Transit Oriented Development
Kosmont was retained by the City of La Verne to initiate an EIFD feasibility study for a multi-agency proposed District that would help finance public infrastructure and encourage private investment for a variety for commercial and mixed-use projects. The proposed project area is in a transit-oriented development (TOD) area of the La Verne Old Town Specific Plan and surrounds a proposed Metro Gold Line Extension light rail station. Anticipated infrastructure improvements include a range of first mile / last mile, pedestrian and bicycle connectivity, roadway and other infrastructure projects. Kosmont’s work resulted in EIFD formation by the City in October 2017 as the first EIFD in the County of Los Angeles and the six-county SCAG region. After lengthy negotiations, the County of Los Angeles formally joined the district as a partner in January 2020, committing 50% of its share of property tax increment to the district. La Verne represents the second EIFD statewide involving a city and county partnership (after Placentia / Orange County).

Work Samples: City of La Verne / County of LA EIFD
CITY OF LA VERNE / COUNTY OF LOS ANGELES: Enhanced Infrastructure Financing District (EIFD) Feasibility Analysis and Formation
CITY OF FRESNO: Downtown and Blackstone BRT Corridor Enhanced Infrastructure Financing District (EIFD) Evaluation and Formation
Kosmont evaluated and led the successful formation of an enhanced Infrastructure Financing District (EIFD) encompassing approximately 4,200 acres in the Downtown and Blackstone Avenue Bus Rapid Transit (BRT) Corridor areas of the City, an area almost entirely comprised of Opportunity Zone and Disadvantaged Community Census Tracts.

The district will generate approximately $350 million in funding for transit and housing-supportive infrastructure to catalyze and support future growth and reinvestment into the local community. The Fresno City Council and the EIFD Public Financing Authority (PFA) approved the final Infrastructure Financing Plan (IFP) in September 2020, marking the first City-lead EIFD in the Central Valley.

Work sample: https://www.fresno.gov/eifd

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
20 SECTION 3.

FIRM EXPERIENCE

LETTER OF RECOMMENDATION
21 SECTION 3.

FIRM EXPERIENCE

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
22 SECTION 3.

FIRM EXPERIENCE
CLIENT: SCAG, 900 WILSHIRE BLVD., STE. 1700, LOS ANGELES, CA 90017 CONTACT: Kimberly Clark, SCAG Program Manager, Resource Conservation & Resilient Communities (213) 236-1844 / [email protected]
PROJECT DATES: August 2015 – Present
WORK SAMPLE: SCAG Application Link / City of Placentia / County of Orange EIFD / West Carson EIFD For many years, Kosmont has been engaged by the Southern California Association of Governments (SCAG) for special district and tax increment financing subject matter expertise and technical advisory, serving its 191 member cities and six member counties. Kosmont developed with SCAG a special district technical screening application and assists with ongoing training services for its member cities and counties.

Kosmont has additionally led over fifteen EIFD/CRIA "Pilot Projects" funded by SCAG throughout the SCAG region, involving district feasibility evaluation, stakeholder outreach, and actual district formation. One Pilot involves the City of Placentia, where Kosmont provided the initial EIFD feasibility study for an approximately 300-acre Transit-Oriented Development (“TOD”) area surrounding their forthcoming Metrolink station. Kosmont assisted Placentia with drafting of the required Infrastructure Financing Plan (“IFP”) and tax increment negotiations with the County of Orange.

Kosmont worked with Placentia and Orange County to form the first city and county cooperative EIFD in the State, established on July 30, 2019. The EIFD is expected to approximately $27 million in infrastructure funding capacity, and Kosmont is currently assisting the City and County in underwriting the EIFD’s first debt issuance of approximately $10 million. An additional Pilot involves the unincorporated community of West Carson in Los Angeles County, where Kosmont provided initial feasibility analysis and additionally provided technical advisory, stakeholder outreach, and other assistance to form the first County-led EIFD in Southern California. The West Carson EIFD is approximately 1,587 acres, encompassing the West Carson TOD Specific Plan and Harbor-UCLA Medical Center Campus Master Plan areas. Total tax increment revenues to be generated are estimated at $625 million.

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG):

Special District and Value Capture Technical Advisory

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Kosmont was retained by the City of Carson for technical advisory related to the evaluation and eventual formation of the City of Carson Enhanced Infrastructure Financing District (EIFD). The EIFD encompasses approximately
1,735 acres including a mix of potential future land uses on significantly underutilized properties. Kosmont
prepared the governing Infrastructure Financing Plan
(IFP), tax increment revenue projections, fiscal impact and economic benefit analysis, staff reports, resolutions, and required public mailing, newspaper, and website notices.

Kosmont lead presentations to the City Council, the EIFD Public Financing Authority (PFA), and County staff and
elected officials regarding the proposed activities of the EIFD. Kosmont additionally facilitated discussions with the County of Los Angeles to eventually establish the third successful City/County EIFD partnership in the County of Los Angeles. The Carson EIFD was officially formed in
August 2022.

Click the links here to view the Carson EIFD website and the Carson EIFD Infrastructure Financing Plan (IFP).
23 SECTION 3.

FIRM EXPERIENCE
CITY OF CARSON: Carson Enhanced Infrastructure Financing District (EIFD) Formation

CITY OF FORTUNA

SUPPLEMENTAL BUDGET REQUEST
Requesting Department:

Fund Name/s Amended:

Fund #/s Amended:

City Manager / Community Development
General Fund
100
Packet #
JV #
Prepared By
Checked By
Post Date
Intra‐Department Budget Transfer
Other Budget Transfer

REVENUES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
TOTAL 0.00 0.00 0.00

EXPENDITURES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
Professional Services 100-6025-3200 4,000.00 24,750.00 28,750.00 TOTAL 4,000.00 24,750.00 28,750.00

PURPOSE
Department Head: Date:

Finance Director: Date:

City Manager: Date:

To include in budget cost for professional services agreement for a Feasibility Analysis for the Fortuna Enhanced Infrastructure Finance District. Brought before Council for approval at the October 21, 2024 meeting.
✔ New Budget Appropriation
Additional Budget Appropriation
Business Item 5c

STAFF REPORT
City Council Business Item
DATE: October 21, 2024
TO: Honorable Mayor and Council Members
FROM: Casey J. Day, Chief of Police
THROUGH: Amy Nilsen, Interim City Manager
SUBJECT: The City Council of the City of Fortuna Publicly Supporting California’s Proposed Proposition 36, Resolution 2024-35
STAFF RECOMMENDATION:

Staff recommends the City Council publicly support California’s proposed Proposition 36 by adopting Resolution 2024-35
EXECUTIVE SUMMARY:

Proposition 36 is a 2024 California ballot initiative designed to strengthen penalties for repeat offenders and drug traffickers, addressing some of the unintended consequences created by Proposition 47. Prop 47, passed in 2014, downgraded certain theft and drug offenses to misdemeanors, resulting in an increase in organized retail theft, serial shoplifting, and drug crimes.

Proposition 36 responds by reclassifying petty theft as a felony if the individual has two or more previous theft convictions, thereby holding repeat offenders accountable.

Additionally, the initiative introduces lengthened prison sentences for drug trafficking based on the type and amount of the controlled substance, focusing on high-risk drugs such as fentanyl, methamphetamine, heroin, and cocaine. It also creates a new class of treatment-mandated felony charges for drug possession, allowing individuals to avoid harsher sentences if they successfully complete a court-ordered treatment program. A critical provision of Proposition 36 is the requirement that courts issue murder warnings to drug suppliers, stating that future sales resulting in a death could result in a murder charge.

Proposition 36 is supported by law enforcement groups like the California District Attorneys Association and local law enforcement professionals, who view it as a way to restore public safety and address the escalation of repeat offenses. This measure is significant for communities, which have experienced a rise in repeat offenses and are looking for solutions to bolster public safety efforts.

Business Item 5c

RECOMMENDED COUNCIL ACTION:

1. Receive Staff Presentation and Review Council Questions

2. Open Public Comment

3. Close Public Comment

4. Motion to Adopt Resolution 2024-35 and read by title only.

5. Voice Vote.

ATTACHMENTS:
 Resolution Number 2024-35, A Resolution of the City Council of the City of Fortuna Supporting California’s Proposed Proposition 36 Which if Passed, Would Increase the Penalty for Repeat Shoplifters and Allow for More Stringent Consequences for Those Involved in Drug Crimes.

RESOLUTION NO. 35

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA SUPPORTING CALIFORNIA’S PROPOSED PROPOSITION 36

WHICH IF PASSED, WOULD INCREASE THE PENALTY FOR REPEAT

SHOPLIFTERS AND ALLOW FOR MORE STRINGENT
CONSEQUENCES FOR THOSE INVOLVED IN DRUG CRIMES.

WHEREAS, the City of Fortuna, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, Proposition 47, passed in 2014, reduced many felony theft and drug-related offenses to misdemeanors, which has significantly hampered law enforcement’s ability to address crime and has led to a noticeable increase in serial theft, organized retail crime, and drug abuse across the state; and
WHEREAS, since the passage of Proposition 47, communities such as Fortuna have witnessed a troubling rise in repeat offenders who take advantage of the lenient penalties for theft and drug possession, undermining public safety and confidence in the criminal justice system; and WHEREAS, Proposition 36, titled Allows Felony Charges and Increases Sentences for Certain Drug and Theft Crimes, is a necessary and responsible reform to California’s criminal justice laws, as it restores accountability by enhancing penalties for habitual offenders, particularly those engaging in organized crime, serial theft, and drug trafficking; and WHEREAS, the proposition increases the penalty for repeat shoplifters and allows for more stringent consequences for those involved in drug crimes, ensuring that law enforcement has the necessary tools to keep communities safe and protect businesses from ongoing theft and disruption; and
WHEREAS, Proposition 36 also seeks to deter drug trafficking by imposing longer prison sentences for traffickers and introducing treatment-mandated felony charges for drug possession to encourage recovery while holding offenders accountable for their actions; and WHEREAS, Proposition 36 includes measures to safeguard communities from dangerous narcotics such as methamphetamines, fentanyl, heroin, and cocaine by allowing for felony charges if individuals fail to complete mandated treatment programs and by providing stricter warnings to drug suppliers about potential murder charges if they sell drugs that result in a fatality;
NOW, THEREFORE, BE IT RESOLVED, that the City of Fortuna affirms its support for Proposition 36 and recognizes it as a vital step toward enhancing public safety, protecting local businesses, and addressing the loopholes created by Proposition 47 that have led to a surge in theft and drug-related offenses.

NOW, THEREFORE, the City Council of the City of Fortuna does hereby resolve as follows:

1. The City of Fortuna firmly supports Proposition 36 and considers the proposed legislation responsible, productive, and necessary.

2. The Fortuna City Council encourages local governments, law enforcement agencies, and communities throughout California to stand united in support of Proposition 36 as a measure to restore balance, accountability, and deterrence to our criminal justice system and to uphold the safety and values of our city.

PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 21st day of October, 2024 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
__________________________
Mayor, Tami Trent
ATTEST:
__________________________
Siana L. Emmons, City Clerk
Business Item 5d

STAFF REPORT
City Council Business Item
DATE: October 21, 2024
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Amy Nilsen, Interim City Manager
SUBJECT: Approve Contract with Invoice Cloud and Authorize the Interim City Manager to Execute all Applicable Documents
STAFF RECOMMENDATION:

Approve contract with Invoice Cloud and authorize the Interim City Manager to execute all applicable documents.

EXECUTIVE SUMMARY:

The Finance Department processes approximately 4,600 Water/Wastewater bills each month. Out of this total amount of bills approximately 4,000 bills are sent in the mail with the remaining 600 sent via email. Out of the 4,600 bills approximately 3,200 are paid either in person at City Hall, via a check sent in the mail, or over the phone. All three of those payment methods require staff time to manually input the payment information into our utility billing software. Currently, the City has about 1,400 payments that are paid through the City’s online payment website, Municipal Online Payments. This type of payment method requires very little staff time as the payments are input into our utility billing software in one bulk upload.

City staff have identified two areas of opportunity, the first is to transition more customers to ebilling which sends the bills to an email and not through the mail. This saves an average of $0.80 per bill as the City saves on postage, paper, folding, and staff time. The second area of opportunity is to transition more customers to paying automatically through our online payment website. This area of opportunity is a bit more difficult to quantify but would save staff time which would allow staff to focus on other areas of priority within the department.

Finance staff have been working diligently to educate and encourage customers to sign up for ebilling and paying through our online website. One thing that staff have become aware of through this effort to convert more customers to e-billing and online payments is that the current payment website is difficult to use for customers and does not offer a wide-range of payment options. Staff contacted our current online payment provider to inquire about simplifying the payment process and adding more payment options with little to no progress. This led staff to investigate if other online payment providers would be able to provide a better service to our customers.

Through this research staff came across the InvoiceCloud platform. InvoiceCloud offers several options to make payments including, e-Check, PayPal, Apple Pay, Google Pay, and others which are not supported by our current online payment system. InvoiceCloud offers up to 3 automated Business Item 5d

reminders via email or text to customers who have not paid their monthly bill by a date certain.

Those communications have built-in links for easy payment including paying by text. Another feature of InvoiceCloud was the ability to login to the system and see the same view as the customer. The ability to walk a customer through account inquiry, making payment, scheduling payment, signing up for autopay, and other actions is extraordinarily helpful for providing better service to customers requesting assistance.

The City pays for any payment fees our current software charges and will continue to do so with the Invoice Cloud payment fees that are broken down in the attached contract.

FISCAL IMPACT:

The City spends approximately $110,000 in printing, mailing, and payment processing fees.

Printing and mailing costs approximately $0.80 per bill. The credit/debit card fee rate is comparable to our current provider but with the added e-Check option the City could recognize processing fee savings as e-Checks are less expensive than credit/debit card fees. As a reminder the City absorbs the fees and does not pass these onto customers.

The City could recognize as much as $30,000 in annual savings if we are able to convert 20% of our customers to paperless billing and e-Check adoption.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions

2. Open Public Comment

3. Close Public Comment

4. Motion to approve contract with Invoice Cloud and authorize the Interim City Manager to execute all applicable documents. Voice vote.

ATTACHMENTS:
 InvoiceCloud Contract
 InvoiceCloud Presentation
Biller Order Form

SALES INFORMATION
IC Sales Rep Serena Johnson Vertical Local Gov (Util, Tax, Misc) Order Date 10/8/2024 [email protected] Billing Software Tyler - Incode

BILLER INFORMATION
Ownership Type Government Phone +1 707-725-7600 Fax
Legal Name City of Fortuna, CA Website URL https://www.friendlyfortuna.com/ Address 1 621 11th Street Bus. Open Date
Address 2 Federal Tax ID
City Fortuna *Federal Tax ID and Legal Name must match on all documents State CA ZIP 95540 Array

BILLER CONTACT
Primary Contact Name Aaron Felmlee
Phone +1 707-725-7600
Email Address [email protected]

SIGNING AUTHORITY
Name Amy Nilsen Title Interim City Manager
Phone +1 707-725-
7600 Fax Email Address [email protected]

BILLER BANK ACCOUNT (FOR INVOICE CLOUD AND NETWORK FEES, AND AS PROVIDED IN THE BILLER AGREEMENT) Note: Must include voided business check or bank letter for each unique account Billing Method Direct Debit
Routing # Last 4 Acct #

PAYMENT METHODS ACCEPTED
Payment Methods [American Express] [VISA/Mastercard/Discover] [PayPal] [ACH/EFT] BILLER PRICING (see Invoice Type Parameter Sheet(s) for invoice-type-specific pricing)* Description Interval Cost Type Cost
Biller Portal Access Fee Monthly Fixed ($) $250.00
Credit Card - Chargeback Fee Non-Submitter Per Transaction Fixed ($) $10.00 EFT - ACH Reject Fee Non-Submitter Per Transaction Fixed ($) $10.00 PayPal Brands - Chargeback Fee (PayPal Brands) Per Transaction Fixed ($) $10.00 Invoice Presentment For Paperless Customers Per Transaction Fixed ($) $0.00 Invoicing - Outbound Campaigns - Call Per Transaction Fixed ($) $0.15 Invoicing - Outbound Campaigns - Email Per Transaction Fixed ($) $0.10 Invoicing - Outbound Campaigns - Text Per Transaction Fixed ($) $0.10

HARDWARE
Card Reader Type Swipe Only Quantity 1 Cost per Reader $0.00 Card Reader IDTech SREDKey Billing Interval Monthly
Shipping Address
(if different than location
address)

DATA RETENTION
Months to Keep 24 *Additional Fees apply if greater than 24 months

IMPLEMENTATION CHARGES
Description Interval Cost
Implementation (per SOW) One-Time $0.00 (WAIVED)

NOTES/SPECIAL HANDLING
[signature page follows]

CERTIFICATION AND AGREEMENT
A. By signing below, the Biller hereby ratifies its authorization for Invoice Cloud, Inc. ("Invoice Cloud") to execute debit/credit entries to the Biller Bank Account(s) indicated above at the depository financial institution(s) named above and to debit/credit the same such account(s). The Biller acknowledges that the origination of ACH transactions to its account(s) must comply with the provisions of U.S. law. This authority is to remain in full force and effect until (i) Invoice Cloud has received written notification (by electronic or U.S. mail) from the Biller of its revocation in such time and manner as to allow Invoice Cloud a reasonable opportunity to act on it, but not less than 10 business days notice; and (ii) all obligations of the Biller to Invoice Cloud that have arisen under this Agreement and all other agreements have been paid in full. The Biller must also notify Invoice Cloud, in writing, (by electronic or U.S. mail) when a change in Biller Bank Account account number(s) or bank has occurred at which time this authorization shall apply to such new/changed Biller Bank Account. This notification must be received no less than 10 business days in advance of any change. A fee will be charged for any returned or rejected ACH debits.

B. By signing below, the Biller named: (1) has read, agreed to, ratifies the Biller Agreement, Biller T+Cs (referenced in the Biller Agreement) and other Order Forms previously executed by the Biller, and (2) certifies to Invoice Cloud that he/she is authorized to sign this Order Form; (3) certifies that all information and documents submitted in connection with this Order Form are true and complete; (4) authorizes Invoice Cloud or its agent to verify any of the information given, including credit references, and to obtain credit reports ; (5) agrees to pay the Monthly Access Fee through the last day of the month following the effective date of termination as provided in the Billing Agreement; (6) agrees that Biller and each transaction submitted will continue to be bound by the Order Form and the Biller Agreement in its entirety and any new agreement forms executed herewith; (7) agrees that Biller will submit transactions only in accordance with the information in this Biller Order Form and Biller Agreement and will immediately inform Invoice Cloud, by email ([email protected]) if any information in this Order Form changes, and (8) In the event of non-payment of any sums due, Invoice Cloud reserves the right to withdraw such sums from the Biller Bank Account at any time to ensure payment of the same.

C. Pay by Text: Standard data rates and text messaging rates may apply based on the payer's plan with their mobile phone carrier. Payer can opt out of text messaging at any time with Invoice Cloud. Partial payment or overpayment is not supported. Biller may not use the service for activities that violate any law, statute, ordinance or regulation.

D. This Biller Order Form will become effective only when signed by Invoice Cloud.

In WITNESS WHEREOF, the parties have executed this Agreement as of this day Accepted by Biller: Accepted by Invoice Cloud, Inc.:

X X
Corporate Officer/Authorized Official Corporate Officer Amy Nilsen Kevin W. O'Brien
Printed Name Printed Name
Interim City Manager CEO
Title Title
Biller Order Form

BILLER ORDER FORM

INVOICE TYPE PARAMETER SHEET
Invoice Type Parameters must be completed for each invoice type Invoice Type Utilities Pricing Model Non-Submitter
Serena [email protected] Pays Network Fees Yes

CURRENT BILLING DETAILS
Please indicate how many bills are sent monthly by placing the bill count for each month below:

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
4600 4600 4600 4600 4600 4600 4600 4600 4600 4600 4600 4600 Avg CC
Transaction $ 117.00 Max Invoice $ 125,000.00 Bill Frequency Monthly Avg. Bills Per Month 4600

PRODUCTS AND SERVICES
Products and Services [EBPP] [OBD] [Outbound Campaigns] TRANSACTIONAL PRICING (Paid by Biller)
Payment Source Description Payment Method Fee Rate % Fee Amount $ Additional Fee $ All Payment Sources Credit/Debit/PayPal 1.69%
All Payment Sources ACH/EFT $1.55
Online Bank Direct All Payment Methods $0.50

TRANSACTIONAL PRICING EXCEPTIONS
SERVICE FEES (Paid by Payer)
Payment Source Description Payment Method Fee Amount Calculation Type Min. Fee ($) per Transaction

SERVICE FEE EXCEPTIONS

MAX PAYMENT CAP
Card and PayPal Max ($) 125,000 ACH Max ($) 125,000

BILLER BANK ACCOUNT (FOR DEPOSITS AND CHARGEBACKS)
Note: must include voided business check or bank letter for each unique account Routing # Last 4 Acct # Last 4 Acct # for OBD

NOTES / SPECIAL HANDLING
Biller Agreement
Biller Agreement Rev 5.1.5
The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement P a g e | 1

1. License Grant & Restrictions. Subject to execution by Biller of the Invoice Cloud Biller Order Form incorporating this Agreement, Invoice Cloud hereby grants Biller a non-exclusive, non-transferable, worldwide right to use the Service described on the Biller Order Form until termination as provided herein, solely for the following purposes, and specifically to bill and receive payment from Biller’s own customers, for Services that are referenced in the Biller Order Form. All rights not expressly granted to Biller are reserved by Invoice Cloud and its licensors.

Biller will provide to Invoice Cloud all Biller Data generated for Biller’s Customers. Unless otherwise expressly agreed to in writing by Invoice Cloud to the contrary, Invoice Cloud will process all of Biller’s Customers’ Payment Instrument Transactions requirements related to the Biller Data and will do so via electronic data transmission according to our formats and procedures for each electronic payment type selected in the Biller Order Form. In addition, Biller will execute all third-party applications and enter into all agreements required for the Service without unreasonable delay, including without limitation Payment Processing Agreements and merchant agreements that may be required upon implementation, or later at such time as the Service operates with different or multiple payment processors. Throughout the Term of this Agreement, for “Invoice Types” listed on the Biller Order Form (e.g., real estate taxes, utility bills, parking tickets, insurance premium, loans, etc.), Biller will not use the credit card processing, ACH or check processing of any bank, payment processor, entity, or person, other than Invoice Cloud via electronic data transmission or the authorization for processing of Biller’s Customers’ Payment Instrument Transactions, for each electronic payment method selected in the Biller Order Form.

Biller shall not: (i) license, sublicense, sell, resell, transfer, assign, distribute or otherwise commercially exploit or make available to any third party the Service in any way; (ii) modify or make derivative works based upon the Service; (iii) recreate, "frame" or "mirror" any portion of the Service on any other server or wireless or Internet-based device; (iv) reverse engineer or access the Service; or (v) copy any features, functions or graphics of the Service.

2. Privacy & Security. Invoice Cloud's privacy and security policies may be viewed at http://www.invoicecloud.com/privacy.html. Invoice Cloud reserves the right to modify its privacy and security policies in its reasonable discretion from time to time which modification shall not materially adversely impact such policies. Invoice Cloud will maintain compliance with current required Payment Card Industry (PCI) standards and Cardholder Information Security standards.

3. Account Information and Data. Invoice Cloud does not and will not own any Customer Data, in the course of providing the Service. Biller, not Invoice Cloud, shall have sole responsibility for the accuracy, quality, integrity, legality, and reliability of, and obtaining the intellectual property rights to use and process all Customer Data. In the event this Agreement is terminated, Invoice Cloud will make available to Biller a file of the Customer Data (to the extent that Invoice Cloud is permitted to provide pursuant to applicable law and PCI-DSS standards), within 30 days of termination of this Agreement (or at a later time if required by applicable law), if Biller so requests at the time of termination. Invoice Cloud will retain Customer Data for a period from its creation for the time frame that is listed in the Biller Order under “Data Retention”, and reserves the right to remove and/or delete remaining Customer Data no less than 60 days after termination or expiration except as prohibited by applicable law or in the event of exigent circumstances.

4. Confidentiality / Intellectual Property Ownership. Invoice Cloud agrees that it may be furnished with or otherwise have access to Customer Data that the Biller’s customers consider confidential. Invoice Cloud agrees to secure and protect the Customer Data in a manner consistent with the maintenance of Invoice Cloud’s own Confidential Information, using at least as great a degree of care as it uses to maintain the confidentiality of its own confidential information, but in no event use less than commercially reasonable measures. Invoice Cloud will not sell, transfer, publish, disclose, or otherwise make available any portion of the Customer Data to third parties, except as permitted under this Agreement or required to perform the Service or otherwise required by applicable law.

Invoice Cloud (and its licensors, where applicable) owns all right, title and interest, including all related Intellectual Property Rights, in and to the Invoice Cloud Technology, the Content and the Service and any enhancement requests, feedback, integration components, suggestions, ideas, and application programming interfaces, recommendations or other information provided by Biller or any other party relating to the Service. In the event any such intellectual property rights in the Invoice Cloud Technology, the Content or the Service do not fall within the specifically enumerated works that constitute works made for hire under applicable copyright laws or are deemed to be owned by Invoice Cloud, Biller hereby irrevocably, expressly and automatically assigns all right, title and interest worldwide in and to such intellectual property rights to Invoice Cloud. The Invoice Cloud name, the Invoice Cloud logo, and the product names associated with the Service are trademarks of Invoice Cloud or third parties, and no right or license is granted to use them.

Biller agrees that during the course of using or gaining access to the Service (or components thereof) it may be furnished with or otherwise have access to information that Invoice Cloud considers to be confidential including but not limited to Invoice Cloud Technology, the Agreement, customer and/or prospective customer information, product features and plans, the marketing/sales collateral, pricing and financial information of the parties which are hereby deemed to be Invoice Cloud Confidential Information, or any other information that by its very nature constitutes information of a type that any reasonable business person would conclude was intended by Invoice Cloud to be treated as proprietary, confidential, or private (the “Confidential Information”). Biller agrees to secure and protect the Confidential Information in a manner consistent with the maintenance of Invoice Cloud’s rights therein, using at least as great a degree of care as it uses to maintain the confidentiality of its own confidential information, but in no event use less than reasonable efforts. Biller will not sell, transfer, publish, Biller Agreement
Biller Agreement Rev 5.1.5
The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement P a g e | 2
disclose, or otherwise make available any portion of the Confidential Information of the other party to third parties (and will ensure that its employee and agents abide by the requirements hereof), except as expressly authorized in this Agreement or otherwise required by applicable law.

5. Billing. Invoice Cloud fees for the Service are provided on the Biller Order Form. Invoice Cloud's fees are exclusive of all taxes, levies, or duties imposed by taxing authorities. Invoice Cloud may assess and/or collect such taxes, levies, or duties against Biller and Biller shall be responsible for payment of all such taxes, levies, or duties, excluding only United States (federal or state) taxes based solely on Invoice Cloud's income. All payment obligations are either auto debited from the Biller Bank Account or payable on receipt of invoice from Invoice Cloud, and are non-cancellable, and all amounts or fees paid are non-refundable. Unless Invoice Cloud in its discretion determines otherwise, all fees will be billed in U.S. dollars. If Biller believes Biller’s bill or payment is incorrect, Biller must provide written notice to Invoice Cloud within 60 days of the earlier of the invoice date, or the date of payment, with respect to the amount in question to be eligible to receive an adjustment or credit; otherwise such bill or payment is deemed correct. Invoice Cloud reserves the right to modify pricing with respect to applicable fees to be paid under this Agreement, at any time upon thirty days written notice to Biller: a) based on increases incurred by Invoice Cloud on Network Fees from credit card processers, bank card issuers, payment associations, ACH and check processers; or b) if, during the Term, the average credit card payment processed by Invoice Cloud for any three (3) consecutive month period exceeds 110% of the Average Credit Card Transaction $ specified on the corresponding Invoice Parameter Sheet(s), to the extent that Invoice Cloud incurs increases in Network Fees.

Invoice Cloud, on at least 30 days written notice to Biller, may also increase any or all fees referenced in the Biller Order Form (including any Invoice Parameter Sheets), by no more than the greater of CPI for the preceding period or 5%, provided, however, that such increase may not apply during the first year after the execution date of the Biller Order Form and may not occur more than once per year thereafter.

6. Term and Termination. The initial term of this Agreement shall commence as of the execution date of the Biller Order Form and continue for a period of five (5) years after the Go Live Date (“Initial Term”), and will automatically renew for each of additional successive three (3) year terms (“Renewal Term”) unless terminated as set forth herein. “Term” as used herein shall mean the Initial Term and any Renewal Term.

This Agreement may be terminated by either party effective at the end of the Initial Term or any Renewal Term by such party providing written notice to the other party of its intent not to renew no less than ninety (90) days prior to the expiration of the then-current term. Additionally, this Agreement may be terminated by either party with cause in the event of a material breach of the terms of this Agreement by the other party and the breach remains uncured for a period of 30 days following receipt of written notice by the breaching party. Upon any early termination of this Agreement by Invoice Cloud as a result of breach, Biller shall remain liable for all fees and charges incurred, and all periodic fees owed through the end of the calendar month following the effective date of termination. Upon any termination or expiration of this Agreement, Biller’s password and access will be disabled and Biller will be obligated to pay the balance due on Biller’s account. Biller agrees that Invoice Cloud may charge such unpaid fees to Biller’s Debit Account or credit card or otherwise invoice Biller for such unpaid fees.

7. Invoice Cloud Responsibilities. Invoice Cloud represents and warrants that it has the legal power and authority to enter into this Agreement.

Invoice Cloud warrants that the Service will materially perform the functions that the Biller has selected on the Biller Order Form and the Statement of Work, attached hereto and incorporated herein by reference (the “Statement of Work”), under normal use and circumstances, and that Invoice Cloud shall use commercially reasonable measures with respect to Customer Data to the extent that it retains such, in the operation of the Service; provided, that the Biller shall maintain immediately accessible backups of the Customer Data (to the extent that Biller is permitted pursuant to applicable law and PCI-DSS standards). In addition, Invoice Cloud will, at its own expense, as the sole and exclusive remedy with respect to performance of the Service, correct any Transaction Data to the extent that such errors have been caused by Invoice Cloud or by malfunctions of Invoice Cloud’s processing systems.

8. Limited Warranty. EXCEPT AS PROVIDED IN SECTION 7, THE SERVICE AND ALL CONTENT AND TRANSACTION DATA IS

PROVIDED WITHOUT ANY EXPRESS, OR IMPLIED WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED

WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND ALL OTHER WARRANTIES ARE

HEREBY DISCLAIMED TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW BY INVOICE CLOUD AND ITS LICENSORS AND PAYMENT PROCESSORS. INVOICE CLOUD AND ITS LICENSORS AND PAYMENT PROCESSORS DO NOT

REPRESENT OR WARRANT THAT (A) THE USE OF THE SERVICE WILL BE UNINTERRUPTED OR ERROR-FREE, OR OPERATE

IN COMBINATION WITH ANY OTHER HARDWARE, SOFTWARE, SYSTEM OR DATA, (B) THAT THE SERVICE WILL NOT

EXPERIENCE DELAYS IN PROCESSING OR PAYING, OR (C) THE SERVICE WILL MEET REQUIREMENTS WITH RESPECT TO SIZE OR VOLUME. Invoice Cloud's service may be subject to limitations, delays, and other problems inherent in the use of the internet and electronic communications. Invoice cloud is not responsible for any delays, delivery failures, or other damage resulting from such problems.

9. Biller’s Responsibilities. Biller represents and warrants that it has the legal power and authority to enter into this Agreement. Biller is responsible for all activity occurring under Biller’s accounts and shall abide by all applicable laws, and regulations in connection with Biller’s and/or its customers’ and/or any payers’ use of the Service, including those related to data privacy, communications, export or import of data and the transmission of technical, personal or other data. Biller represents and warrants that Biller has not falsely identified itself nor provided any false information to gain access to the Service and that Biller’s billing information is correct. Biller shall: (i) notify Invoice Cloud immediately of any unauthorized use of any password or account or any other known or suspected breach of security; (ii) report to Invoice Cloud and immediately stop any copying or distribution of Content that is known or suspected to be unauthorized by Biller or Biller’s Users; and (iii) obtain consent from Biller’s customers and payers to receive notifications and invoices from Invoice Cloud. Invoice Cloud is not responsible for any Biller postings in error due to delayed notification from credit card processors, ACH, bank and other related circumstances.

Biller Agreement
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Biller agrees and acknowledges that in the event that Biller has access to, receives from, creates, or receives protected health information, or Biller has access to, creates, receives, maintains or transmits on behalf of electronic protected health information (as those terms are defined under the privacy or security regulations issued pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and Subtitle D of the Health Information Technology for Economic and Clinical Health Act provisions of the American Recovery and Reinvestment Act of 2009 (“ARRA”), during the performance under this Agreement, it will comply with all such law, regulations and rules related thereto.

Biller is required to ensure that it maintains a fair policy with regard to the refund, return or cancellation of payment for services and adjustment of Transactions. Biller is also required to disclose all refund, return and cancellation policies to Invoice Cloud and any applicable payment processors and Biller’s Customers, as requested. Any change in a return/cancellation policy must be submitted to Invoice Cloud, in writing, not less than 21 days prior to the effective date of such change. If Biller allows or is required to provide a price adjustment, or cancellation of services in connection with a Transaction previously processed, Biller will prepare and deliver to Invoice Cloud Transaction Data reflecting such refund/adjustment within 2 days of resolution of the request resulting in such refund/adjustment. The amount of the refund/adjustment cannot exceed the amount shown as the total on the original Transaction Data. Biller may not accept cash or any other payment or consideration from a Customer in return for preparing a refund to be deposited to the Customer’s account; nor may Biller give cash/check refunds to a Customer in connection with a Transaction previously processed by credit card, debit card, ACH, or other electronic payment method, unless required by applicable law. Biller shall cooperate with Invoice Cloud to effect a timely Implementation by Biller allocating sufficient and properly trained personnel to support the implementation process and fully cooperating with Invoice Cloud and by securing the cooperation of Biller’s software and service providers and providing to Invoice Cloud the information required to integrate with Biller’s billing, CIS and other applicable systems.

10. Indemnification. Invoice Cloud shall indemnify and hold Biller and Biller’s employees, attorneys, and agents, harmless from any losses, liabilities, and damages (including, without limitation, Biller’s costs, and reasonable attorneys’ fees) arising out of: (i) failure by Invoice Cloud to implement commercially reasonable measures against the theft of Customer Data; or (ii) its total failure to deliver funds processed by Invoice Cloud as required hereunder (which relates to payments due from Invoice Cloud for Transaction data). This indemnification does not apply to any claim or complaint relating to Biller’s failure to resolve a payment dispute concerning debts owed to Biller or Biller’s negligence or willful misconduct or violation of any applicable agreement or law.

11. Fees.

Invoice Cloud will charge the Biller and/or payer, payment transaction and other fees as provided in the Biller Order Form. In addition, Invoice Cloud will charge the fees set forth on the Biller Order Form for the initial platform setup, configuration, implementation and integration with Biller system(s) of its standard Service as set forth in the Statement of Work (the “Implementation”). Invoice Cloud reserves the right to also charge for changes and additions to the Implementation, and for any requests by Biller following the implementation which are agreed in writing by the parties, including without limitation for the following services, at its then standard rates:
• Custom development and features which are not stated in the Statement of Work and Biller Order Form, and change requests and modifications to existing platform functionality not stated in the Statement of Work and Biller Order Form; • Additional integrations or integration modifications after the Go Live Date that are not provided for in the Biller Order Form or Statement of Work;
• Changes to bill presentment (web and PDF templates), billing system integrations, and other Service components coded or configured to Biller’s specifications after Biller has signed off on the relevant specification or Service is live; • Custom data extracts and file requests that are not part of the Implementation signed off on by both parties; and • Data conversion not listed in the Statement of Work, or repetitive re-loading of data due to Biller error.

12. Limitation of Liability. INVOICE CLOUD’S AGGREGATE LIABILITY SHALL BE UP TO AND NOT EXCEED THE AMOUNTS ACTUALLY PAID BY AND/OR DUE FROM BILLER IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH CLAIM. IN NO EVENT SHALL INVOICE CLOUD AND/OR ITS LICENSORS BE LIABLE TO

ANYONE FOR ANY INDIRECT, PUNITIVE, SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOSS OF

DATA, REVENUE, PROFITS, USE OR OTHER ECONOMIC ADVANTAGE) DAMAGES ARISING OUT OF, OR IN ANY WAY

CONNECTED WITH THE SERVICE, EVEN IF THE PARTY FROM WHICH SUCH DAMAGES ARE BEING SOUGHT OR SUCH PARTY'S LICENSORS HAVE BEEN PREVIOUSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. Certain states and/or jurisdictions do not allow the exclusion of implied warranties or limitation of liability for incidental, consequential or certain other types of damages, so the exclusions set forth above may not apply to Biller.

13. Export Control. The Biller agrees to comply with United States export controls administered by the U.S. Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, and other U.S. agencies.

14. Notice. Either party may give notice by electronic mail to the other party’s email address (for Biller, that address on record on the Biller Order Form) or by written communication sent by first class mail or pre-paid post to the other party’s address on record in Invoice Cloud’s account information for Biller, and for Invoice Cloud, to Invoice Cloud, Inc., 30 Braintree Hill Office Park, Suite 101, Braintree, MA 02184 Biller Agreement
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Attention: Client Services or [email protected]. Such notice shall be deemed to have been given upon the expiration of 48 hours after mailing or posting (if sent by first class mail or pre-paid post) or 12 hours after sending (if sent by email).

15. Assignment. This Agreement may not be assigned by either party without the prior written approval of the other party, but may be assigned without such party’s consent to (i) a parent or subsidiary, (ii) an acquirer of assets, or (iii) a successor by merger. Any purported assignment in violation of this section shall be void.

16. Insurance.

Invoice Cloud agrees to maintain in full force and effect during the Term of the Agreement, at its own cost, the following coverages:
a. Commercial General or Business Liability Insurance with minimum combined single limits of One Million ($1,000,000) each occurrence and Two Million ($2,000,000) general aggregate. b. Umbrella Liability Insurance with minimum combined single limits of Five Million ($5,000,000) each occurrence and Five Million ($5,000,000) general aggregate.
c. Automobile Liability Insurance with minimum combined single limits for bodily injury and property damage of not less than One Million ($1,000,000) for any one occurrence, with respect to each of the Invoice Cloud’s owned, hired or non-owned vehicles assigned to or used in performance of the Services.
d. Errors and Omissions Insurance (Professional Liability and Cyber Insurance) with limits of liability of at least One Million Dollars ($1,000,000) per claim and in the aggregate.

17. Immigration Laws. Invoice Cloud represents and warrants that it has complied and will comply with all applicable immigration laws with respect to the personnel assigned to the Biller.

18. Beta Products. In the event that there is any functionality labelled “Beta” on the Biller Order Form, such functionality is provided “AS IS”

WITHOUT ANY EXPRESS, OR IMPLIED WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF

MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND ALL OTHER WARRANTIES ARE HEREBY DISCLAIMED

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW BY INVOICE CLOUD AND ITS LICENSORS AND PAYMENT PROCESSORS. INVOICE CLOUD’S AGGREGATE LIABILITY WITH RESPECT TO SUCH FUNCTIONALITY SHALL BE UP TO AND NOT EXCEED $10.

19. General.
(a) With respect to agreements with municipalities, localities or governmental authorities, this Agreement shall be governed by the law of the state wherein such municipality, locality or governmental authority is established, without regard to the choice or conflicts of law provisions of any jurisdiction. With respect to Billers who are not with municipalities, localities or governmental authorities, this Agreement shall be governed by Massachusetts law and controlling United States federal law, without regard to the choice or conflicts of law provisions of any jurisdiction. No text or information set forth on any other purchase order, preprinted form or document (other than a Biller Order Form and any add on Biller Order Form, if applicable), and no documentation (including any implementation planning documents) except as specifically referenced in this Biller Agreement, shall modify, add to or vary the terms and conditions of this Agreement. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then such provision(s) shall be construed, as nearly as possible, to reflect the intentions of the invalid or unenforceable provision(s), with all other provisions remaining in full force and effect. No joint venture, partnership, employment, or agency relationship exists between Biller and Invoice Cloud as a result of this agreement or use of the Service.

The failure of either party to enforce any right or provision in this Agreement shall not constitute a waiver of such right or provision unless acknowledged and agreed to by Invoice Cloud in writing. All rights and obligations of the parties in Sections 4, 6, 10, 12, 14, 18 and 19(a) and (b) shall survive termination of this Agreement. This Agreement, together with any applicable Biller Order Form, comprises the entire agreement between Biller and Invoice Cloud and supersedes all prior or contemporaneous negotiations, discussions or agreements, whether written or oral between the parties regarding the subject matter contained herein. Biller agrees that Invoice Cloud can disclose the fact that Biller is a paying customer and the version of the Service that Biller is using. Where this Agreement is incorporated into, embedded in or otherwise made a part of a separate agreement between Invoice Cloud, Biller and a third party service provider (“Third Party Agreement”), and such Third Party Agreement is terminated or expires, Biller and Invoice Cloud agree that the terms and conditions of this Agreement shall survive and remain in effect as between Biller and Invoice Cloud until this Agreement expires or is otherwise terminated by either Biller or Invoice Cloud in accordance with the terms herein.
(b) Additional terms and conditions and definitions applicable to this Agreement and the Biller Order Form are found at www.invoicecloud.com/biller-terms-and-conditions (the “Biller T+C”) and are agreed to by Invoice Cloud and the Biller.

IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 1 Invoice Cloud
Statement of Work
The City of Fortuna, CA
Overview
The Invoice Cloud (IC) suite of services (The Service) will give The City of Fortuna, CA (Biller) and its customers the ability to accept online payments for invoiced and non-invoiced items. The Service will allow The City of Fortuna, CA to offer online payment processing in a securely hosted real-time environment. Customers will be able to locate, view and print bills or invoices and payment records online and pay using credit cards, debit cards, and electronic checks.

Definitions:

1. Biller – Merchant / The City of Fortuna, CA

2. Payer – Client customer, resident, person paying a bill or invoice

3. EBPP – Electronic Bill Presentment & Payment

4. Bill – Bill and Invoice are used synonymously throughout this document

5. RTDR - Real-Time Data Refresh – collects and aggregates the data as soon as a user accesses a specific function

6. NTDR – Near-Time Data Refresh – integration that happens periodically; the data is collected immediately but it is not aggregated until later – data can be processed every day, every hour or even every few minutes

1. Security and Industry Compliance
Invoice Cloud maintains full compliance with current applicable Payment Card Industry (PCI) standards, Cardholder Information Security Program (CISP) regulations and National Automated Clearinghouse Association (NACHA) rules and guidelines. Invoice Cloud will abide by such guidelines for the security of all cardholder data that Invoice Cloud possesses.
a. PCI - Invoice Cloud will provide compliant storage of Biller’s customer payment information that is certified by Visa/MasterCard. Data security measures are addressed during collection and transmission via SSL with our patent pending encryption technology. All confidential information will be treated in accordance with the PCI standards.
b. Software as a Service (SaaS) Architecture – All Biller customer financial and payment information and the invoice presentment and payment processing application is housed offsite from Biller. c. Browser Compatibility - Invoice Cloud supports the most current version of the industry’s most common browsers.

2. Data Integration
Invoice Cloud does maintain an integration with Tyler InCode. The integration for The City of Fortuna, CA will include the functionality found in Appendix B.

3. Payer Portal
The Payer Portal is an electronic bill presentment and online payment portal where a Biller’s customer (Payer) can view a bill and then proceed, within the same user interface, to make an online payment. a. Invoice Cloud will present bills electronically through a payer portal that is branded for Biller or via an email notification, if the Payer provides an email address. b. The electronic invoice presentment will simulate the paper invoice Biller uses and will be available in PDF and/or html format.
c. The Service may provide the Payer the option of making a payment via credit card (Visa, MasterCard, American Express and Discover) or electronic check (also referred to as ACH, e-check, EFT).

IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 2 d. The Service provides the Payer a one-time online payment option without registration, and the capability to register to access Payer’s account history, schedule a payment, or set up AutoPay payments.
e. A Payer will have the ability to choose their payment date (also known as scheduled payments). f. The system will accept partial, full, or overpayments as defined by the Biller. g. The Payer will register with the Service using the authentication method designated by Biller. h. Linking Accounts - After registering with the Service, the Payer will be able to login into their account(s).

If the Payer has multiple accounts and uses the same authentication information for all accounts, the Payer will be able to link their account and view from a single registration. The Payer will then have the option to choose which account they would like to pay or view in further detail. i. The Payer will receive an email confirmation of payment after any payment process. j. The Payer will have the ability to search and access historical bills once they register with the Service.

The Service will store twenty-four (24) months of rolling history from the point of Biller’s first invoice file upload to the Service. This includes invoice history and account history. k. Biller has the option of allowing the Payer to pay via different payment methods which include online, IVR, IC Biller Portal, Pay by Text, CloudCSRConnect and CloudPOSConnect. l. Payers who have scheduled a payment or registered for AutoPay will receive email notification from the Service of pending payments.
m. The Service includes shopping cart functionality.
n. The Service will allow the Payer the option to elect paperless billing. o. A Payer registered for paperless billing will be automatically placed back on paper billing if their email address is undeliverable; notification of the Payer’s undeliverable email address will be sent to Biller via email.
p. The Service complies with Federal E-Signature Act for paperless billing and AutoPay by providing a system in which a Payer must confirm enrollment in paperless billing and/or AutoPay by responding to an email sent after the Payer registers for paperless billing and/or AutoPay through online self-service.

4. Biller Portal
The Biller Portal is an administrative portal where Biller staff will have access to reporting, search customers, search invoices, search payments, initiate payments or credits, login as a Payer, modify email templates, etc. a. Biller can log in as the Payer on either the Biller or Payer Portal and make a payment on behalf of the Payer. There is an audit trail for who made the payment, and the source of every payment (CSR, Pay by Text, AutoPay, Web, IVR, etc.).
b. Biller will have the capability of blocking future payments by specific Payer and payment method type (i.e. Credit Card or E-Check (ACH).
c. Permissions – The Biller Portal includes a table of role based permissions, determined by the Biller’s System Administrator. Each permission is applied to a user ID on an individual basis to maximize flexibility. The system administrator can allow or disallow access to functions such as viewing data, creating reports, resending email notices, processing payments, credits or refunds, editing email templates and more. Since it is controlled by Biller administrator, changes can be made quickly on an as needed basis.
d. Administrative Email Notifications - Biller may set up the system to send several administrative notifications and request system notifications be sent to multiple staff members. This allows different departments to get the information they need in a timely manner. The notifications include:
 ACH Reject Notifications
 Batch Close Notifications
 Daily Management Report
 File Processing Notifications
 Month End Billing Invoice
 Paperless Customer Email Bounce Daily Report
IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 3  Request System Notifications (this is the ticketing system available in the Invoice Cloud payer portal).
 Status Notifications (notifications of planned outages, new features, etc.) e. Biller Controlled Configuration Options – The Biller Portal includes several Biller controlled configurable options to customize the way payments and customer accounts are handled. The Biller will be able to configure for:
 allowing Auto-Pay and scheduled payments
 allowing customers to update their phone or mailing address through the payer portal  allowing customers to pay less than, or more than the balance due based on receivable type  updating Refund Policy description
 updating customer service phone number

5. Biller Portal - Reporting
Biller can access a selection of pre-configured reports. Biller can request reports for daily, monthly, or date range activity. Most reports can be exported to excel files or scheduled for download as a custom report, as indicated by asterisk (*) in the report name. All stored payment data is truncated, and this is reflected in all reports.
a. Reports:
b. Search Customers*
c. Search Invoices
d. Search Payment Transactions*
e. Monthly Summary
f. Registration Report*
g. Autopay Report*
h. Paperless Report*
i. Data Synchronization History
j. EFT/ACH Rejects*
k. View Scheduled Payments*
l. Invoice File History
m. Import Errors
n. Daily Payments Received*
o. Total Outstanding Invoices
p. Email Notification Summary
q. Email Statistics
r. Email Tracking
s. Bounced Email Report
 Email Statistics
 Email Tracking
 Bounced Email Report

6. Payer Email Notifications
Invoice Cloud provides a set of customizable email notification templates for each invoice type that are delivered for numerous events surrounding electronic invoice presentment and payment activity. Email notifications may be customized through the Biller Portal using a Word style editor and options to insert secure hyperlinks to website, links to electronic documents such as newsletter or bill inserts, and/or variable fields selected from the Biller’s data file.
a. Three (3) email notifications can be scheduled. The first notification is based on the number of days from the invoice due date. Second and third notifications will only be sent to Payers with an outstanding balance, not those with a scheduled payment, or Payers who have signed up for Auto-Pay.

IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 4 b. At the discretion of Biller, Payer email notifications can be delivered for each of the following events.  First Invoice Email Notification
 Second Invoice Email Notification
 Third Invoice Email Notification
 Payment Transaction Receipt
 Declined Auto Pay Transaction
 Late Fee Email Notification
 Declined Scheduled Payment Notification
 Registered Customer Welcome Email
 AutoPay Registration Notification
 Paperless Registration Notification
 ACH Reject/Chargeback Notices (with reason codes and descriptors)  Credit Card Expiration Notification
 Scheduled Payment Confirmation
 AutoPay Reminder Notification
 FlexPay Confirmation Notification
 Scheduled Payment Reminder
 Paperless Off Confirmation
 Online Bank Direct Payment Receipt
 Linked Accounts First Notice Notification
 Linked Accounts Second Notice Notification
 Linked Accounts Third Notice Notification
 AutoPay Off Confirmation
 Conveyed Customer Notification
 Multiple Registered Customers Welcome Email
 Recurring Scheduled Payment Confirmation
 Recurring Scheduled Payment Canceled

7. Business Rules
The Invoice Cloud solution is designed for flexibility for customers and Billers. There are many rules currently available and we will also undertake the creation of new business rules as we both agree. Each bill type operates independently and can accept different payment types as well as other business rules. At Biller’s option, multiple business rules can be applied to each bill type. Invoice Cloud provides flexibility regarding business rules to support specific needs, including:
a. Ability to allow partial payments, over payments, full balance only, or late fees. b. Ability to allow payments beyond the due date - The service is designed to accommodate Biller specific business rules like allowing payments beyond their due date. c. Ability to allow for multiple payment types for one customer for the same bill - The service allows multiple payment types from one customer for the same bill when partial payments are allowed.

Credit/debit card and e-check (ACH) can be run separately and an unlimited number of remittance types can be used. For example, a customer can pay part of a bill with a checking account, another part with a credit card and the remainder with a second credit card of a different type.

IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 5 8. Implementation Process
Invoice Cloud assigns an Implementations Manager (IM) to each Biller. The IM will be the Biller’s primary contact during the implementation process and coordinates all necessary resources from Biller, Biller software company, Invoice Cloud, and any sub-contractors. The IM will provide the Biller with the following documents to facilitate the project:
a. New Biller Questionnaire & Questionnaire Key – Documents critical information needed to setup and initiate the service including information on business rules and feature selection. b. Project Timeline – Details project schedule and milestones. c. Testing & Training Plan – This plan walks the Biller through a set of user acceptance testing criteria and facilitates training on the service.

9. Support & Training
a. Business Hours – The business hours will be Monday through Friday from 7 a.m. to 8 p.m. Eastern Standard Time. Note: Biller Support hours are 7 a.m. to 8 p.m. EST. Payer Support hours are currently 8 a.m. to 6 p.m. EST.
b. Help Desk - The Service will provide a helpdesk ticketing system for Biller within the Biller Portal to get help from Invoice Cloud client support team. This tool will allow Biller to track and retain resolutions for historical reference.
c. Payer Support – The Payer Support is two tiered with Biller staff as the first line of support regarding account, registration and billing questions. Issues with the Invoice Cloud service operation or incorrect credit card charges will be routed to Invoice Cloud Client Support via telephone or a Biller helpdesk ticket.
d. Biller Support - If Biller encounters an inquiry which they cannot resolve Biller will create a helpdesk support ticket. Invoice Cloud Customer Support will address the issue and if applicable provide training to Biller to allow the address of tickets in a timely matter; often within twenty-four (24) business hours.

Biller and technical support is available during business hours. i. Routine Technical Support - Technical Support is available during business hours. Biller may call customer support directly; however, the use of the helpdesk ticketing system is encouraged as the preferred method of contact. Invoice Cloud staff views all tickets as they are submitted and routes them to the appropriate person for resolution.
ii. Emergency After-Hours Support – The helpdesk service is monitored after business hours and emergency support issues are addressed within one (1) hour. An emergency support issue is defined as an issue involving the system being down and inoperable and does not include Payer payment issues. Biller may request email notification be provided in the event the system is down and inoperable.
e. Service Enhancements - Most enhancements do not require action on the part of Biller. Upgrades as agreed are done at the Invoice Cloud server level, so there are no mandatory actions for Biller to take.

Support levels are not affected by enhancements.
f. Biller Training- Biller staff will be guided in how to use the system through in-house training, documentation, remote live sessions, and access to our client support team.  All standard training will be done remotely. Invoice Cloud’s training personnel will provide sessions for both Payer and Biller portals for Biller’s staff.
 Separate training is conducted for Biller’s technical staff regarding the uploading of bill files and any other applicable processes.
 Ongoing phone and Go-To-Meeting training will be provided during the first month of use at no additional cost to Biller.

10. Marketing
IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 6 Invoice Cloud provides free marketing resources that billers can use to promote EBPP payment solutions to their payers. Billers will receive a comprehensive document outlining proven marketing best practices. In addition, billers will be granted access to Invoice Cloud's proprietary Marketing Resource Center. This online tool allows billers to easily and simply download and/or customize marketing materials on demand. These materials include:
• Bill inserts
• Envelope teasers
• Onsite posters
• Counter displays and clear acrylic stands
• Social media and website graphics
• Content for newsletters and press releases
• Pay buttons
• Email content and layout suggestions
• Communications plans
• and more
Billers also have access to weekly live training sessions where they will learn about our recommended best practices for effectively communicating the many benefits of making payments electronically and have the ability to ask questions. We’ll outline simple steps to help improve online payment adoption among their customers. We’ll also review the Marketing Resource Center which will enable billers to create many of the materials mentioned above

11. CloudIVRConnect™
The IC CloudIVRConnect allows Billers to accept payments via our interactive voice response system. It provides customers with 24-hour access to account status and billing information (total balance due, past due amount, last payment made, next billing date etc.). The following options are available:
 Provides for a toll-free call and a caller ID number set by the Biller  Supports messaging in both English and Spanish
 Provides for a customizable initial greeting (includes City/County/Company name) – all remaining prompts are standard
 Ability to pay with credit card (Visa, MasterCard, Discover, American Express), debit card, or eCheck (ACH)
 Replays information with Invoice Cloud generated confirmation #

12. CloudSMSConnect™
The IC CloudSMSConnect allows Billers to accept payments via SMS text messaging. The following options are available:
 Provides interactive registration and service sign-up confirmation  Sends notification when new bills are available for payment  Ability to pay with credit card (Visa, MasterCard, Discover, American Express), debit card, or eCheck (ACH)
 Allows for payment utilizing a stored-payment method

13. AgentConnect™
The IC AgentConnect allows Billers (Agent/CSR/Other) to login to the Customer Portal and perform actions on behalf of a specific customer/account. The following options are available:
 Ability to pay with credit card (Visa, MasterCard, Discover, American Express), debit card, or eCheck (ACH)
 Ability to enroll customer in AutoPay
 Ability to enroll customer in Paperless
IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 7  Ability to enroll customer in Pay by Text
 Option to require authorization/disclosure statement before Customer Portal entry  Option to enable card swipe functionality at point of sale  Provides built-in auditing to track Agent/CSR activity in the Biller Portal

14. CloudStore™
The IC CloudStore allows Billers to accept payments for non-invoiced services like books, t-shirts, etc., fire, police, building permits, or activity programs. The following options are available:
 Accept electronic check and or credit/debit cards.
 Customer receives immediate email confirmation of payment.  Department receives email notification of purchase event for instant fulfillment services.  Ability to apply convenience fees, if required.
 Reporting by service type.
 Linked to Biller branded payment portal.
 Each service type can have its own online registration form.  Can be setup to accept payments over the counter.

15. Online Bank Direct™
The IC Online Bank Direct (OBD) allows Billers to electronically import echeck (ACH) payments initiated from consumer bank bill sites. The following options are available:
 Auto-matching of payments with open invoices
 Email consumer a payment notification for those customers with an email address on file  Ability to apply a single payment to multiple invoices  Custom search capabilities to locate matching invoice(s)  Electronic deposit of corresponding echecks
This SOW contains many products, services and payment methods. Only the specific products, services and payment methods selected by The City of Fortuna, CA, as outlined in the Biller Order Form, are included in the delivery of products, services and payment methods.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement.

The City of Fortuna, CA Invoice Cloud, Inc.

By: _______ By: _____________________________
Printed Name: _____ Printed Name: Kevin W. O’Brien ____ Title: _ ______ ___________ Title: CEO_____ __________
Date: _ ___ Date: 10/4/2024______________________
IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 8 Appendix A: System Modifications
As outlined below, Invoice Cloud has agreed to make the following changes to the setup and functionality of our platform:

NONE
IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 9 Appendix B:

IC Confidential - Statement of Work Fortuna, CA and InvoiceCloud Biller 10 Appendix C: Biller Deliverables
InvoiceCloud + City of Fortuna, CA
September 26, 2024
Improvement: User-friendly Guest Checkout
Confidential & Proprietary | 2
• Barriers to access
- Login requires last payment amount
- No self-service enrollments
- Requires calls to office
• Easy access to bill
• One-click enrollments in payment route
• Paperless
• AutoPay
• Pay-by-Text
Improvement: More Paperless Billing & Communications
Confidential & Proprietary | 3
• Today, staff must facilitate all paperless
billing enrollments
- Resulting in low paperless adoption
- High reliance on postal system
• No effective reminders
- More printing and mailing
- Hours of manual outreach
- Late payments and shutoffs
• InvoiceCloud will allow residents to sign up
for paperless billing with a check of a box
- On average, InvoiceCloud increases paperless
enrollments by 104% in Year 1.
• InvoiceCloud will send up to 3 reminders before
the due date.
- Projected 24% reduction in late payments in Year 1
• InvoiceCloud will provide access to our selfservice Outbound Campaign platform - Mass notifications/alerts can be sent anytime via
voice, text, or email with actionable links
Improvement: More Self-service
Confidential & Proprietary | 4
• PDFs in e-bill
• Login barriers (Last payment amount)
• Limited payment options
- No e-check, Pay-by-Text, Digital wallets
• Limitations of help from office staff
• Intelligent links that drop residents into the last
page of the payment route
• Proactive monitoring of credit card expirations
• Screen mirroring and on-demand actionable
texts/emails allowing the team to help
customers help themselves
More Time
• Less payment related calls
• Less manual processes
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Confidential & Proprietary | 5
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Microsite (seismic.com)
InvoiceCloud Pricing – Absorbed Model
Confidential & Proprietary | 6
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Account Access and Outbound Campaign Access
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Previous
Updated 10/3/2024
Updated 10/8/2024
Business Item 5e

STAFF REPORT
City Council Business Item
DATE: October 21, 2024
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, Interim City Manager
SUBJECT: Discussion and Direction Regarding the City Council Policies and Procedures Manual and Appoint Two Councilmembers to a Policies and Procedures Manual Review Ad Hoc Committee
STAFF RECOMMENDATION:

Authorize the Interim City Manager, and appoint two councilmembers, to participate in a Policies and Procedures Manual Review Ad Hoc Committee.

EXECUTIVE SUMMARY:

At the September 17, 2024 City Council meeting during Future Agenda Item discussion, Council Member Mobley requested the City of Fortuna’s City Council Policies and Procedures Manual be updated. The last update of this manual occurred on June 20, 2011. Since the manual has not been updated in over 13 years, staff recommends creating a Policies and Procedures Manual Review Ad Hoc Committee to review the current manual, review other city manuals, and return with a recommendation.

After City Council discussion at tonight’s meeting and direction regarding the items of interest, staff and the Policies and Procedures Manual Review Ad Hoc Committee can return with complete text for review at a future meeting submitted to the full City Council, if so assigned.

Once the limited task of recommending updates to the Policies and Procedures Manual is complete, the Ad Hoc Committee shall be dissolved without further action of the Council.

FISCAL IMPACT:

Costs for staff time to meet with a Committee and update the manual is already included in the adopted Fiscal Year (FY) 2024-25 budget.

RECOMMENDED ACTION:

Authorize the Interim City Manager, and appoint two councilmembers, to participate in a Policies and Procedures Manual Review Ad Hoc Committee. Voice vote.

ATTACHMENTS:
 Current City Council Policies and Procedures Manual

CITY OF FORTUNA
City Council
Policies & Procedures
Manual
The City of Fortuna’s mission is to be worthy of the public trust by providing timely, efficient, well-planned and dependable services to the community.

Prepared by
The City Clerk’s Office
Linda Jensen, Deputy City Clerk
Adopted by Resolution 2011- 14 on June 20, 2011
~ - 2 - ~

TABLE OF CONTENTS

1. LOCAL GOVERNMENT IN FORTUNA.......................................................................- 5 -

1.2 RULES FOR AMMENDING THIS POLICIES & PROCEDURES MANUAL ..................... - 5 -

1.3 COUNCIL-MANAGER FORM OF GOVERNMENT ............................................................ - 5 -

1.4 MAYOR AND CITY COUNCIL MEMBERS......................................................................... - 5 -

1.5 THE MUNICIPAL CODE ........................................................................................................ - 6 -

2. YOUR ROLE AS A CITY COUNCIL MEMBER ..........................................................- 6 -

2.2 RESPONSIBILITIES................................................................................................................ - 6 -

2.3 COUNCIL GOALS................................................................................................................... - 6 -

2.4 POLICY AND ADMINISTRATION ....................................................................................... - 7 -

2.5 SERVICES AND RESOURCES .............................................................................................. - 7 -

2.6 COMMUNICATION/PUBLIC INPUT .................................................................................... - 7 -

2.7 CONSTITUENT REQUESTS .................................................................................................. - 8 -

3. CODE OF ETHICS .........................................................................................................- 8 -

3.2 PREAMBLE.............................................................................................................................. - 8 -

3.3 PUBLIC INTEREST................................................................................................................. - 8 -

3.4 CONDUCT................................................................................................................................ - 8 -

3.4.1 City Manager Form of Government:.................................................................................. - 8 -

3.4.2 Influence:............................................................................................................................ - 8 -

3.4.3 City Representation:........................................................................................................... - 8 -

3.4.4 Confidential Matters: ......................................................................................................... - 8 -

3.4.5 Conflict of Interest: ............................................................................................................ - 9 -

3.4.6 Conduct at Meetings: ......................................................................................................... - 9 -

3.4.7 Council Committees:.......................................................................................................... - 9 -

3.4.8 Compliance with Intent of Council Conduct Code: ........................................................... - 9 -

3.5 CONFLICT OF INTEREST...................................................................................................... - 9 -

3.5.1 Applicable Law. ................................................................................................................. - 9 -

3.5.2 Sources of Assistance....................................................................................................... - 10 -

3.5.3 Identifying Conflicts ........................................................................................................ - 10 -

3.5.4 General Rules................................................................................................................... - 10 -

4. SALARIES .....................................................................................................................- 11 -

4.2 SALARY AND REIMBURSEMENT .................................................................................... - 11 -

4.3 BENEFITS .............................................................................................................................. - 11 -

4.3.1 Group Health Insurance ................................................................................................... - 12 -

4.3.2 Training, Meetings, Conferences..................................................................................... - 12 -

5. CONDUCT OF CITY COUNCIL MEETINGS............................................................- 12 -

5.1 PARLIAMENTARY PROCEDURE ...................................................................................... - 12 -

5.2 RULES FOR PERSONS PRESENTING TESTIMONY TO THE COUNCIL...................... - 13 - ~ - 3 - ~

5.3 TYPES OF COUNCIL MEETINGS....................................................................................... - 13 -

5.3.1 Regular Meetings............................................................................................................. - 13 -

5.3.2 Special Meetings.............................................................................................................. - 14 -

5.3.3 Adjourned Meetings......................................................................................................... - 14 -

5.3.4 Closed Session ................................................................................................................. - 14 -

5.3.5 Emergency Meetings........................................................................................................ - 14 -

5.3.6 Budget Workshops:.......................................................................................................... - 14 -

5.4 MINUTES AND RECORD KEEPING .................................................................................. - 14 -

5.5 AGENDA ................................................................................................................................ - 15 -

5.5.1 Placing Items on the Agenda............................................................................................ - 15 -

5.5.2 Order of Agenda Items..................................................................................................... - 15 -

5.6 AGENDA ITEMS ................................................................................................................... - 16 -

5.6.1 Call to Order..................................................................................................................... - 16 -

5.6.2 Public Comment............................................................................................................... - 16 -

5.6.3 Presentations, Recognitions, Proclamations..................................................................... - 16 -

5.6.4 Report of Disbursements.................................................................................................. - 16 -

5.6.5 Consent Calendar ............................................................................................................. - 16 -

5.6.6 Regular Business Items/Public Hearings ......................................................................... - 16 -

5.6.7 City Manager’s Report..................................................................................................... - 17 -

5.6.8 Future Agenda Items........................................................................................................ - 17 -

5.6.9 Council Reports and Communications............................................................................. - 17 -

5.6.10 Public Comment (before Closed Session)........................................................................ - 17 -

5.6.11 Closed Sessions (as needed)............................................................................................. - 17 -

5.6.12 Adjournment .................................................................................................................... - 17 -

5.7 TYPES OF COUNCIL ACTIONS.......................................................................................... - 17 -

5.7.1 Consent Calendar ............................................................................................................. - 18 -

5.7.2 Ordinances........................................................................................................................ - 18 -

5.7.3 Urgency Ordinances......................................................................................................... - 18 -

5.7.4 Resolutions....................................................................................................................... - 18 -

5.7.5 Proclamations................................................................................................................... - 19 -

5.7.6 Minute Orders .................................................................................................................. - 19 -

5.7.7 Public Hearings................................................................................................................ - 19 -

6. CITY ORGANIZATION................................................................................................- 19 -

6.1 CITY MANAGER................................................................................................................... - 19 -

6.2 CITY ATTORNEY ................................................................................................................. - 19 -

6.3 CITY EMPLOYEES ............................................................................................................... - 19 -

7. ADVISORY COMMISSIONS AND BOARDS.............................................................- 19 -

7.1 OVERVIEW............................................................................................................................ - 19 -

7.1.1 Qualifications................................................................................................................... - 19 -

7.1.2 Temporary committees..................................................................................................... - 20 -

7.1.3 Appropriations.................................................................................................................. - 20 -

7.1.4 Appointments – Terms..................................................................................................... - 20 -

7.1.5 Vacancies......................................................................................................................... - 20 -

7.1.6 Officers............................................................................................................................. - 20 -

7.1.7 Meetings – Rules and regulations – Quorum................................................................... - 20 -

7.1.8 Compensation................................................................................................................... - 21 - ~ - 4 - ~

7.1.9 Conflict of interest............................................................................................................ - 21 -

7.2 HISTORICAL COMMISSION............................................................................................... - 21 -

7.2.1 Established – Purpose ...................................................................................................... - 21 -

7.2.2 Membership terms............................................................................................................ - 21 -

7.2.3 Council representative...................................................................................................... - 21 -

7.2.4 Museum operation............................................................................................................ - 21 -

7.3 PARKS AND RECREATION COMMISSION...................................................................... - 21 -

7.3.1 Established – Purpose ...................................................................................................... - 21 -

7.3.2 Membership Terms .......................................................................................................... - 21 -

7.3.3 Council Representative .................................................................................................... - 22 -

7.4 PLANNING COMMISSION ................................................................................................. - 22 -

7.4.1 Established – Purpose ...................................................................................................... - 22 -

7.4.2 Membership Terms .......................................................................................................... - 22 -

7.4.3 Compensation................................................................................................................... - 22 -

7.4.4 Alternate Member ............................................................................................................ - 22 -

7.5 DESIGN REVIEW BOARD................................................................................................... - 22 -

7.5.1 Established – Purpose ...................................................................................................... - 22 -

7.5.2 Membership Terms .......................................................................................................... - 23 -

7.5.3 Adoption of Manual ......................................................................................................... - 23 -

7.5.4 Delegation of Decision-Making Authority by the Design Review Board. ...................... - 23 -

8. APPENDIX .......................................................................................................................... 1

8.1 "Rosenberg's Rules of Order" (Simple Rules of Parliamentary Procedure for the 21st Century) By Dave Rosenberg ........................................................................................................................1 - 5 -

1. LOCAL GOVERNMENT IN FORTUNA
Fortuna was incorporated as a City in 1906, being
governed by a City Council. In 1977, the City, by
ordinance, established the Council-Manager form of
government. Fortuna is a Charter City and the City
Council is the governing body. The City Council is
vested with all the regulatory and corporate powers of
a municipal corporation provided for by state law
governing charter cities.

1.2 RULES FOR AMMENDING THIS

POLICIES & PROCEDURES MANUAL
The City Council shall determine its own policies and
procedures and amend them from time to time and/or
adopt new ones. Amendment to this manual or
adoption of new policies or procedures shall require a
majority vote of the council.

1.3 COUNCIL-MANAGER FORM OF

GOVERNMENT
Under the Council-Manager form of government,
citizens elect their Council Members who make
decisions which determine the policies of the City.

The City Council is the governing body of the City
responsible for establishing policies and programs.

The City Council is responsible to see that local
policies and laws address both short and long term
needs, and that citizens receive a return on their tax
investment in terms of efficient City services.

While the City Council establishes policies and
programs, it is the responsibility of the City Manager
to apply and administer those policies to the day-today operations of the City. The City Manager oversees all City operations and is the liaison between the Council and the City staff.

Teamwork between the Council and the Manager is a
key element of the Council-Manager plan. The
pooling of skills is essential to resolve the many
complex problems that face the City today. The
Council-Manager plan seeks to enhance the
effectiveness of local policy-making and municipal
operations.

1.4 MAYOR AND CITY COUNCIL MEMBERS
The City of Fortuna is governed by a five-member
City Council elected to four-year terms on a staggered
basis. Council Members are elected in the general
election in November of even numbered years. After
each general election, the City Council elects a Mayor
and Mayor Pro Tempore from its own membership.

The Mayor is the presiding officer of the City
Council. As presiding officer, the Mayor calls
Council meetings to order, announces the order of
business as detailed on the agenda, states motions,
calls for a vote and announces the results, facilitates and monitors discussions, maintains order, and
enforces the Council's rules and parliamentary
procedures. When the Mayor is absent at any
meeting, the Mayor Pro Tempore shall serve as
Mayor. When the Mayor and Mayor Pro Tempore are
absent at any meeting of the Council, the next most
senior member of the Council as determined by years
of service on the Council or, if equal, by the number
of votes received in the municipal election in which
they were elected shall serve as Mayor.

The Mayor also, with Council approval, signs all
ordinances, resolutions, and other records of
proceedings approved by the Council. The Mayor has
no veto power. The Mayor Pro Tempore serves in the
capacity of the Mayor during any absence or
incapacitation of the Mayor.

The Mayor and members of the Council are elected to
provide leadership in setting goals and in formulating
policies. The City Council is the focal point for
identifying and interpreting the wishes of the citizens and translating these into specific programs.

Successful goal setting and policy formulation largely
depend on a good working relationship amongst the
Council and between the Council and the
administrative staff. Under the City Manager’s
direction, staff can provide assistance in analyzing the City’s needs, suggesting action programs, and
calculating the costs of proposals. However, the
Council has the final responsibility for establishing
local policies and determining services and budget
levels appropriate for the City.

The City Council also serves as Board Members for
the Fortuna Redevelopment Agency (RDA), the
Fortuna Public Financing Authority (FPFA) and the
Fortuna Public Improvement Corporation (FPIC),
with all meetings being held concurrently. References
in this document to the “City Council”, also includes
- 6 -
the Council’s role on the RDA, FPFA and FPIC.

1.5 THE MUNICIPAL CODE
The Fortuna Municipal Code sets forth the regulatory,
penal and administrative laws of general application to the City. Local ordinances adopted by the City
Council are codified in the municipal code by the City
Clerk. These laws are enforceable by the City, and
violation constitutes a misdemeanor or infraction.

The municipal code is divided into the following
categories:
 General Provisions
 Administration and Personnel
 Revenue and Finance
 Business Taxes, Licenses and Regulations
 Animals
 Health and Safety
 Public Peace, Safety and Morals
 Vehicles and Traffic
 Streets Sidewalks and Public Places
 Utilities
 Cable and Open Video Systems
 Buildings and Construction
 Subdivisions
 Zoning
 Tables
 Index
Other directives and policies of the City Council are
recorded in Council resolutions or by minute action of
the Council.

2. YOUR ROLE AS A CITY COUNCIL MEMBER

2.2 RESPONSIBILITIES
The City Council is the elected legislative and policymaking body of the City government. The Council is responsible to the citizens for:
 Hiring the City Manager and the City Attorney.
 Establishing City-wide goals that address short
and long range needs.
 Formulating policies that define a course of action
that shape City operations.
 Providing quality services within available
resources.
 Acting as a representative between the
professional staff and local citizens.

City Council Members are local leaders. The
electorate expects the Council to set the tone and
direction for municipal operations. Strategic planning
and goal setting are the tools that enable a Council to define their vision and determine methods for
accomplishing their goals.

2.3 COUNCIL GOALS
Goal setting requires time, energy, and a well-defined
process. Every two years, usually in January
following a City Council election, the Council meets
with the City Manager and the various department
managers in a goal setting/priority projects session to review progress on goals previously set, and defines
new goals and objectives for the City. While a myriad
of responsibilities consume the limited time and
energy of elected officials, there are some definite
advantages for engaging in the process:

1. Goal setting gives the Council a basic framework
for action. By setting goals and then deciding
those that are most important, the Council is
defining what it wants to achieve over a given
period of time. Otherwise, the Council may find
itself floating from issue to issue, crisis to crisis.

2. Goal setting helps the Council spend its time more
wisely. When you know what you are trying to
accomplish, you can allocate most of your time to
important issues.

3. Goal setting gives everyone a chance to share
their individual goals and priorities and then
work out the differences. The Council ends up
with a list of goals to which everyone is
committed.

4. Goal setting gives the City Manager clear
guidelines to get the job done. It lets the City
Manager know exactly what the Council is trying
to accomplish as a group. Without clearly defined
goals, the City Manager may get conflicting
signals and end up not meeting anyone's goals.

5. Goal setting gives the Council and staff, some
important budget guidelines. Knowing what
- 7 -
programs and issues are the highest priorities will
enable staff to have a better idea of how to
allocate funds when preparing the budget for
Council approval.

6. Goal setting gives the Council an evaluation tool.

When goals and priorities are set, the Council has
valuable data in hand to determine how well the
Council and the City Manager did in achieving the
agreed upon goals and priorities.

Goal setting will not solve all the immediate
problems, nor guarantee that a crisis will not occur;
but it will help you get a better idea of what is
happening in the City and allow you to define what
you want to happen over the long term.

2.4 POLICY AND ADMINISTRATION
A dictionary definition of "policy" states that it is "any plan or course of action designed to influence and
determine decisions, actions, and other matters." For a City Council, policy is the business of making
decisions about the City. Examples of policy
decisions include:
 The decision to submit to voters a bond measure
for capital improvements.
 The adoption of an ordinance regulating sewer
and water operations.
 Approval of land-use policies and implementation
procedures.
 Decisions concerning projects which involve
federal and state grants as well as local
expenditures.

In theory, the distinction between policy and
administration has been that policy is the process of
determining what is to be done, while administration
is the process of determining how to do it. A policy is what the Council defines it to be. However, the dayto-day operation of the various departments is administration. In reality, a fine line exists between
policy and administration; any issue that is perceived
as important or controversial can become a "policy"
matter.

The City Council has the final say in major decisions
such as: adoption of the budget; acceptance of a new
classification and compensation plan; selling a bond
issue; or instituting a redevelopment project. While it has a dominant role in policy matters, the City
Manager, staff and citizens play a prominent role in
the development of policies.

The City Council, City Manager, and staff analyze
City needs, identify available resources, and suggest
courses of action, but the Council has the final say on matters that affect services.

Because the distinction between policy and
administration is frequently blurred, tension can result when the City Council, City Manager, and/or staff
feels that their area of responsibility is being infringed upon.

Perhaps the best way to prevent conflicts over whether
or not something is policy or administration is for the Council and the administrative staff to discuss and
attempt to clarify their respective roles and
expectations of one another. The result can be a more
effective and harmonious partnership.

2.5 SERVICES AND RESOURCES
While the electorate expect high quality local
government services at minimum cost, the existing
social and economical conditions make this
increasingly difficult to achieve. Today's City
Council is part of an era that requires a variety of
strategies for getting by with less.

In difficult fiscal times, it may be necessary to
consider cutbacks, reallocations, trade-offs, program
terminations, and re-thinking what services the City
should provide. However, the continued charge will
be to provide the best level of service with the
resources that are available.

2.6 COMMUNICATION/PUBLIC INPUT
Elected officials not only represent their constituents and make decisions on their constituents’ behalf, but
they also have the opportunity to communicate with
the public.

While some people mistrust government, the City
Council can take a leadership role in promoting twoway communication with the public. Citizens’ views can be sought in a variety of ways: public meetings;
- 8 -
advisory committees; citizen surveys; and volunteer
assistance in City government. Similarly, the Council
can express its view by speaking to local civic groups, and working with the press and other news media to
provide accurate and up-to-date information.

2.7 CONSTITUENT REQUESTS
Members of the Council will frequently receive
requests or complaints. In most cases, the City staff
can resolve these problems. The main thing is for the
Council Member to get the basic information, and
then pass this on to the City Manager for appropriate
action. The key to answering constituent requests is
to be specific in what the Council Member will do,
i.e., promise a timely response, or look personally at
the problem, while avoiding a commitment to “fix
anything.”

3. CODE OF ETHICS

3.2 PREAMBLE
The residents and businesses of Fortuna are entitled to have fair, ethical, and accountable local government.

Such a government requires that:
 Public officials comply with both the letter
and spirit of the laws and policies affecting
operations of the government;
 Public officials be independent, impartial, and
fair in their judgment and actions;
 Public office be used for the public good, not
for personal gain; and
 Public deliberations and processes be
conducted openly, unless legally confidential,
in an atmosphere of respect and civility.

To this end, the City of Fortuna City Council adopts
this Code of Ethics to encourage public confidence in
the integrity of local government and its operation.

3.3 PUBLIC INTEREST
Council Members will work for the common good of
the people of Fortuna and not for any private or
personal interest, and they will endeavor to treat all
persons, claims, and transactions in a fair and
equitable manner.

Council Members shall comply with the laws of the
nation, the State of California, and the City in the
performance of their public duties.

3.4 CONDUCT
It is the policy of the City of Fortuna that the members of the Fortuna City Council conduct themselves
individually and as a council so that all matters related to the City are conducted in an open, fair, responsible and impartial manner, that all City business be
conducted in an orderly and efficient manner, that all
governmental policies be made in the proper channels
of the government structure, that public offices not be used for personal gain and that the public have
confidence in the integrity of its government.

Therefore, the following Rules of Conduct shall be
observed by each City Council Member.1

3.4.1 City Manager Form of Government:

The Council affirms Chapter 2.08 of the Fortuna
Municipal Code which provides that the City Manager
is the administrative head of the City government and
that only the City Manager is authorized to give
direction to members of the City Staff.

3.4.2 Influence:

Council Members must recognize that it is important
for City Staff, Commissions and Committees to be
able to make objective recommendations on items
related to the City. Council Members must be certain
that any opinions expressed to members of Staff,
Commissions and Committees are clearly identified as
individual personal opinions, unless official Council
action has been taken on the subject in question.

3.4.3 City Representation:

Council Members, simply by being Council Members,
are at all times viewed as representatives of the City.

The conduct of Council Members is a direct reflection
on the City and members should conduct themselves
accordingly. Except where specifically authorized by
City Council action or for purely ceremonial purposes,
no City Council Member should make any statement
or appearance or indicate in any way that he or she is
representing the city.

3.4.4 Confidential Matters:

At times matters will come before the City Council

1. Original Council Policy adopted March 16, 1998,
amended and adopted into this document June xx, 2011.
- 9 -
which should be kept confidential, such as employee
discipline, legal matters, salary negotiations and other matters properly handled in closed meetings. Council
Members shall keep such information confidential.

3.4.5 Conflict of Interest:

Council Members shall abstain from any action which
may cause a conflict of interest as defined by State
Law, including accepting employment which is
incompatible with the proper discharge of official
duties, or using the office of City Council in any
manner to induce any person or entity to provide
anything of value or benefit to themselves or any other person.

3.4.6 Conduct at Meetings:

It is common, that Council Members may differ on
matters and that such differences will be debated. The
debate should be limited to the issue and each Council
member should refrain from making personal or
derogatory remarks.

Council Members shall base their decisions on the
merits and substance of the matter submitted for
review.

Council Members shall publicly share substantive
information that is relevant to a matter under
consideration that they may have received ex parte;
that is, received from sources outside of the public
decision-making process. This insures that all parties, the council, staff, and public, are acting on the same
information.

Council Members shall inform themselves on public
issues; listen attentively to public discussions before the body; and focus on current business issues.

Council Members shall refrain from campaigning or
calling for public action against Council Members
during council meetings. Any Council Member who
does so is considered out of order and the mayor shall
take appropriate action.

Council Members shall refrain from requesting that an
item be placed on the agenda after two previous
requests have been rejected or denied by consensus or
formal vote of the Council.

Any Council Member may move for the Mayor to
enforce the parliamentary procedures, and/or the
Policies & Procedures Manual of the City Council. A
majority vote of the Council shall require the mayor to so act.

3.4.7 Council Committees:

From time to time the City Council forms committees
of two Council Members. The role and responsibilities
of these Council committees shall be determined in an
open and public session at the time they are formed.

3.4.8 Compliance with Intent of Council
Conduct Code:

Staff members concerned regarding the propriety of
City Council member’s interaction with them should
confidentially discuss their concerns with the City
Manager who shall report to the Mayor. If the Mayor
is the Council member in question, the City Manager
will report to the Mayor Pro Tem. The Mayor or
Mayor Pro Tem shall then confidentially address the
issue with the involved Council member so as to
assure compliance with the intent of this code. Issues
not resolved in this private conference should be
brought to the City Council as an agenda item. Issues
arising from Council Members themselves shall be
addressed directly through the Mayor or the Mayor
Pro Tem if the Mayor is the Council Member in
question. The process from this point will be the same
as described above.

Council Members shall perform their duties in
accordance with the policies, processes and rules of
order established by the City Council.

3.5 CONFLICT OF INTEREST

3.5.1 Applicable Law.

There are several laws and legal principles that
prohibit public officials from acting in situations in
which they might have a conflict of interest. These
include Government Code Section 1090 prohibiting
contracts in which the official has a financial interest and the doctrine of incompatible offices, which
prohibits an official from holding two offices at the
same time if doing so might create a clash of loyalties.

Even broader in scope, voters in 1974 approved the
Political Reform Act.

The statutes (the Political Reform Act of 1974)
provide that certain municipal officers must disclose
their “economic interests” periodically on forms
provided by the Fair Political Practices Commission
(FPPC). These municipal officials are members of the
City Council (including the Mayor), members of the
City Planning Commission, the City Manager, the
City Treasurer, and the City Attorney.
- 10 -
Statements of Economic Interests are submitted by
these officials to the City Clerk who makes and retains a copy of each statement and forwards the original to
the FPPC in Sacramento.

In addition, the City is required to determine which of its other officials, committee members, and employees
perform duties that involve potential conflicts of
interest. The City has adopted a resolution outlining
those positions, called “designated employees.”
These employees are required to disclose their
economic interests. A copy of the Political Reform
Act, as amended, is available for review in the City
Clerk's office.

Conflict of interest is a complex issue. Council
Members should carefully consider and monitor
“gifts” from any person or organization whether the
gift is financial support, loans, event tickets, or meals.

Many of these gifts may need to be reported and may
present a conflict of interest when considering and/or
voting on projects or issues related to the person
presenting the gift. Questions relating to conflict of
interest should be directed to the City Attorney or
your personal attorney.

The rules relating to conflicts of interest are set forth in the Political Reform Act (PRA) (Government Code
Sections 81000 and following) and case law. They are
complex and not necessarily intuitive. The
consequences of violating the rules can be severe,
including substantial monetary penalties and possible
criminal prosecution to individual Council Members.

Finally, with certain limited exceptions, officers and
employees of the Redevelopment Agency are
prohibited from acquiring any interest in real property located within a redevelopment project area if the
person is required to participate in formulating or
approving plans or policies for the redevelopment
project.

3.5.2 Sources of Assistance.

The Fair Political Practices Commission (FPPC) is the
state agency that administers the PRA, issues
regulations, gives conflict advice, and enforces the
rules. The FPPC also provides a “hotline” that a
Council Member may call for informal advice. The
City Attorney is available for consultation, but the
City Attorney’s advice on conflicts matters cannot
provide a Council Member with any immunity from
prosecution. Most conflict of interest questions
ultimately turn on whether it is reasonably foreseeable that the decision will have a “material financial effect” on the Council Member’s economic interest.

Municipal attorneys generally do not advise public
officials as to whether a material financial effect
would exist unless the answer is absolutely certain
based upon applicable regulations. While the City
Attorney may have his or her own opinion as to
whether or not a material financial effect will be
present, it is ultimately up to the Council Member to
determine this issue. Only a formal written opinion
from the FPPC provides immunity from prosecution
for violations of the conflict of interest rules. The City Attorney is available to assist with preparing a request for a formal opinion.

3.5.3 Identifying Conflicts
It is the responsibility of each Council Member to
identify, disclose and declare his or her conflict before action is taken on a matter. If possible, the conflicted Council Member should notify staff prior to the
council meeting at which the matter will be heard, to
ensure the presence of a quorum. Staff will attempt to
assist with identifying obvious conflicts, but the
ultimate responsibility is with each Council Member.

3.5.4 General Rules
Council Members shall not use their official positions
to influence government decisions in which they have
a financial interest, or where they have an
organizational responsibility, or personal relationship that would present a conflict of interest under
applicable State law. As required by law, Council
Members declaring a conflict of interest shall recuse
themselves and leave the Council Chambers.

In accordance with the law, members shall file written
disclosures of their economic interests and, if they
have a conflict of interest regarding a particular
decision, refrain from participating in that decision,
unless otherwise permitted by law.

Council Members shall not take advantage of services
or opportunities for personal gain, by virtue of their
public office that are not available to the public in
general, nor shall they use public resources not
available to the public for private gain or personal
purposes. They shall refrain from accepting gifts,
favors, or promises of future benefits that might
compromise their independence of judgment or action
or give the appearance of being compromised.
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Council Members shall respect and preserve the
confidentiality of information provided to them
concerning the confidential matters of the City. They
shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private
interests.

Council Members shall not appear on behalf of private
interests of third parties before the City Council or any board, commission, committee or proceeding of the
City.

Council Members shall represent the official policies
and positions of the City Council to the best of their
ability. When presenting their personal opinions and
positions, members shall explicitly state they do not
represent the Council or the City.

Council Members shall refrain from using their
positions to unduly influence the deliberations or
decisions of City commissions, boards or committees.

A public official who has a financial interest in a
decision shall, upon identifying a conflict of interest or a potential conflict of interest and immediately
prior to the consideration of the matter, do all of the following:
a. Publicly identify the financial interest that
gives rise to the conflict of interest or
potential conflict of interest in detail sufficient
to be understood by the public, except that
disclosure of the exact street address of a
residence is not required.
b. Recuse himself/herself from discussing and
voting on the matter, or otherwise acting in
violation of the Political Reform Act.
c. Leave the room until after the discussion,
vote, and any other disposition of the matter is
concluded, unless the matter has been placed
on the portion of the agenda reserved for
uncontested matters.
d. Notwithstanding paragraph c, a conflicted
public official may speak on the issue during
the time that the general public speaks on the
issue when he or she appears solely to
represent himself or herself on a matter
related to his or her personal interest. Personal
interests are interpreted to include, but are not
limited to:
i An interest in real property that is wholly
owned by the official or members of
his/her immediate family.
ii A business entity wholly owned by the
official or member of his or her
immediate family.
iii A business entity over which the official
exercises sole direction and control, or
over which the official and his/her spouse
jointly exercises sole direction and
control.

4. SALARIES

4.2 SALARY AND REIMBURSEMENT
The Council, in accordance with Government Code
Section 36516, sets the salary for the City Council.

Salary for the Redevelopment Agency is established
pursuant to Health & Safety Code Section 33114.5.

City Council Members are paid $300/month for City
matters (Section 2.04.050 of the City Code) and $30
for each meeting of the Redevelopment Agency that
they attend.

The City does not participate in Social security; parttime employees are not eligible to participate in PERS and are enrolled in a Federal Insurance Contributions
Act (FICA)-alternative retirement program. City
Council Members will pay the Medicare portion of
Social Security and the City contributes 4% and the
Council Member contributes 3.5% towards the FICAalternative retirement plan. 2 In addition, Council Members may be reimbursed for
actual expenses while performing official duties.

4.3 BENEFITS
The following benefits are available to City Council
Members:
3 2. Original Council policy adopted December 1995,
amended and adopted into this document June xx, 2011.

3. Original Council Policy adopted April 17, 1995,
- 12 -

4.3.1 Group Health Insurance
The City offers an excellent health, dental and vision
care, and life insurance plan for its employees.

City Council Members may purchase health insurance
at their own expense while in office and under certain
circumstances after they leave office. The following
was adopted by Resolution 95-08 on April 17, 1995:

1. City Council Members, while they are in office,
who wish to enroll in Redwood Empire Municipal
Insurance Fund’s (REMIF) health and welfare
plan at their own expense are hereby authorized to
purchase health, dental, vision, and life insurance
benefits in accordance with Section 53201
through 53205 of the California Government
Code.

2. City Council Members, after they leave office,
who wish to enroll in REMIF's health and welfare
plan at their own expense, are hereby authorized
to purchase health, dental, vision, and life
insurance benefits in accordance with Sections
53201 through 53205 of the California
Government Code.

4.3.2 Training, Meetings, Conferences
The City allocates funds for training, meetings, and
conferences in which the Council Members may wish
to participate. Among these are the quarterly
meetings of the Redwood Empire Division of the
League of California Cities, the League of California
Cities Annual Conference, the annual Mayors and
Council Members Executive Forum, and other local
meetings. Council Members are encouraged to
participate in these meetings and conferences. All
travel and training expenses are subject to the policies and procedures set forth in the City Administrative
Policy Manual.

5. CONDUCT OF CITY COUNCIL MEETINGS

5.1 PARLIAMENTARY PROCEDURE
Parliamentary procedure is a set of rules that regulate and standardize how the City Council conducts its
business.

It is the policy of the Fortuna City Council that,
unless otherwise required by State law or other

amended and adopted into this document June xx, 2011,
regulation, all City Council meetings shall be
conducted under Rosenberg’s Rules of Order: Simple
Parliamentary Procedures for the 21st Century
(Appendix A-1).

However, no ordinance, resolution, or other action of
the City Council shall be invalidated or the legality
thereof otherwise affected by the failure or omission
of the City Council to observe or follow such rules.

Certain procedures relating to motions, agenda item
discussion, debate, and courtesies contained in
Rosenberg’s Rules of Order: Simple Parliamentary
Procedures for the 21st Century are incorporated into
this document, except to the extent they are modified
by this document.

These rules in affect shall be in accordance with state law and as set forth below.

The following summarizes the most frequently used
actions:
a) Council Members and Staff shall

1. Work earnestly to preserve appropriate order
and decorum during all meetings.

2. Discourage side conversations, disruptions,
interruptions or delaying efforts.

3. Ensure that all discussion relate to the subject
matter at hand and be relevant and pertinent to
allow for the expeditious disposition and
resolution of the business before the Council.

4. Agree to disagree but be respectful of one
another.

5. Not engage in any abusive or vulgar language
and shall avoid any personal attacks on any
other member of the City Council, staff, or the
public; nor shall they publicly impugn the
integrity, honesty or motives of such
individuals.

6. Inform the Presiding Officer when departing
from a meeting.
b) While the Council is in session, all persons shall
preserve order and decorum. Any person making
personal, impertinent, or slanderous remarks or
demonstrating rude, boisterous, or profane
behavior will be called to order by the Presiding
Officer. If such conduct continues, the Presiding
Officer may call a recess, request removal of such
- 13 -
person(s) from the Council Chamber, adjourn the
meeting, or take such other appropriate action as
permitted by the Ralph M. Brown Act (Brown
Act)4.
c) Only the City Council, Staff, Advisory Body
Chairs or designated representatives and those
authorized by the Presiding Officer shall be
permitted to sit at the Council or staff tables.
d) Enforcement of Order

1. Any Council Member may request the
Presiding Officer to enforce the rules of
protocol. Upon motion and majority vote, the
Presiding Office shall be required to do so.

2. Upon instructions from the Presiding Officer,
it shall be the duty of any police officer
present to eject from the Council Chambers
any person in the audience who uses
boisterous or profane language or any person
who interrupts and refuses to keep quiet or
take a seat when ordered to do so by the
presiding officer or otherwise disrupts the
proceedings of the Council.

5.2 RULES FOR PERSONS PRESENTING
TESTIMONY TO THE COUNCIL5

1. The person must be clearly recognized by the
Mayor and is to approach the podium and
microphone before speaking.

2. He/she is encouraged to clearly state his/her
name for the record.

3. All comments shall be addressed to the City
Council. All questions shall be placed
through the Mayor.

4. Speakers addressing the City Council will be
limited to three minutes per speaker, or such a
time as the presiding officer prescribes.

5. All exhibits and documents used by speakers
shall be given to the City Clerk for
distribution to the Council and staff.

6. We disagree, but will be respectful of one

4. California Govt. Code 54950, et seq.

5. Original Council Policy adopted November 16, 1993,
amended and adopted into this document June xx, 2011.
another. All comments will be directed to the
issue at hand, and addressed to the City
Council. Personal attacks are unacceptable.

7. All questions or rebuttal will be through the
Mayor.

8. If there are numerous people in the audience
who wish to participate on an issue, and it is
known that all represent the same position, a
spokesperson should be selected to speak for
the entire group. The spokesperson will
therefore have the opportunity of speaking for
a reasonable length of time and of presenting
a complete case.

9. To avoid unnecessary cumulative evidence,
the Mayor may limit the number of witnesses
or the time of testimony on a particular issue.

10. Irrelevant and off-the-subject comments will
be ruled out of order.

5.3 TYPES OF COUNCIL MEETINGS
All meetings, regular, special, or closed sessions must be conducted within the geographical boundaries of
the governing body’s jurisdiction, unless specifically
exempted.

5.3.1 Regular Meetings
The Fortuna City Council holds regular meetings on
the first and third Monday of each month at 6:00 p.m.

The Brown Act requires that public notice be given at
least 72 hours before the meeting indicating the time
and place of the meeting. An agenda of each meeting
is posted in three public places6.

Regular meetings may be adjourned to a specified
time and place. A regular meeting cannot be
adjourned past the next regular meeting date.

Regular City Council meetings are televised by
Access Humboldt and aired live on public access
cable television. A schedule for rebroadcast airings
can be found on www.accesshumboldt.org. A link to
City Council video is provided on the City’s website,
www.friendlyfortuna.com.

6. City Hall, the Chamber of Commerce, and River Lodge
- 14 -

5.3.2 Special Meetings
The City Council can call special meetings to review
and discuss specific topics. Special meetings also
include workshops and study sessions which give the
Council the opportunity to review items that require
more in depth study than time allows on the regular
evening meeting agenda, and to receive informational
reports on items that require no formal action.

Members of the City Council and local news media
must receive notices of special meetings at least 24
hours prior to the time of the meeting. The notice
must specify the time and place of the special meeting
and the business to be transacted or discussed.

Regular ordinances may not be adopted at special
meetings; only urgency ordinances may be adopted at
such meetings. Items not listed on the agenda shall
not be considered at the special meeting.

5.3.3 Adjourned Meetings
The City Council may adjourn any regular, adjourned
regular, special or adjourned special meeting to a
specified time and place.

A notice of adjournment shall be posted on or near the
door of the place where the regular, adjourned regular, special or adjourned special meeting was held within
24 hours after the time of the adjournment and include
the specified time and place the adjourned meeting
will be held.

Noticing of adjourned meetings shall follow the
requirements set forth in section 5.3.2 of this
document.

5.3.4 Closed Session
Closed sessions may be held to discuss certain matters
specified by law, including:
 Personnel matters to consider the appointment,
employment, performance, or dismissal of a
public employee;
 Matters of national and public safety;
 Labor negotiations;
 License applications by persons with criminal
records;
 Real estate negotiations;
 Pending litigation;
Closed sessions are attended by the City Council, City
Manager, City Attorney (as required), appropriate
management staff, and occasionally by a special
consultant or attorney depending upon the matter
under discussion. Closed sessions are not open to the
public. Matters discussed during closed session are
confidential and may not be discussed with anyone
outside of the closed session or during a public
meeting. Violations of the closed session
confidentiality requirement could put the City in a
perilous position with respect to litigation and
represent a violation of the law7for the person
violating the confidentiality requirement.

If any final decisions are made in the closed session
meeting, the agency must reconvene in open session
where it may be required to report the specific votes
and actions taken by the agency.

5.3.5 Emergency Meetings
When an emergency, including but not limited to an
earthquake, flooding, or fire occurs, an emergency
meeting may be called by the City Council with a onehour notice to its members and local news media.

The City Council may not meet in closed session
during an emergency meeting. Except for the 24-hour
notice requirement, the special meeting requirements
set forth in section 5.3.2 of this document shall apply in emergency meetings.

5.3.6 Budget Workshops:

Every year, the City Council holds budget workshops
to review funding allocations for the goals and
objectives outlined by the City Council.

Requirements set forth in section 5.3.2 shall apply to
Budget Workshops.

5.4 MINUTES AND RECORD KEEPING
The minutes serve as a source of information for the
Council and for the public. Meeting minutes are
required to include the following information:
 Members present;

7, California Govt. Code 54950, et seq.
- 15 -
 Motions, proposals, resolutions, orders,
ordinances, and other items of business and
their disposition;
 Results of all votes and, in the case of a roll call
vote, the vote of each member by name.

The minutes of the City Council meetings shall be
kept by the City Clerk and shall be recorded in a file
kept for that purpose with a record of each particular
type of business transacted by the Council set off in
paragraphs with subheadings.

The minutes may include a record of the names of
persons addressing the Council during public
comment, and a brief statement of the subject to
which their remarks related.

Minutes of the City Council are “Action Based”
minutes, and do not include a verbatim transcript, only motions and votes are shown on the record. Such
minutes shall be submitted to the Council for approval
and/or correction in draft form at a subsequent
meeting.

It is the policy of the City Council that only members
of the Council and the City Clerk have the authority to make revisions to the minutes subject to a majority
vote of the City Council.

Council Members having only typographical
corrections to the minutes are encouraged to provide
such corrections to the City Clerk directly and need
not wait to submit such corrections at a meeting. As a
time saving measure, even full correction items may
be written ahead and passed to the City Clerk before
the meeting. All changes/corrections to the minutes
require Council approval.

The City Clerk is responsible for recording, preparing, and filing Council minutes. Minutes of Council
meetings are available for review in the City Clerk's
office and on-line at www.friendlyfortuna.com.

5.5 AGENDA
The City Manager is responsible for preparation of the
City Council agenda; however, the City Clerk’s
department is responsible for the actual gathering and
copying of the agenda packet.

The agenda is a listing and synopsis of each business
item the Council will consider during its meeting.

The City Clerk makes the agenda available at every
regular meeting.

The agenda and relevant background materials are
available at City Hall on Friday before the scheduled
Monday Council meeting or on-line at
www.friendlyfortuna.com.

5.5.1 Placing Items on the Agenda
In order to facilitate the orderly conduct of the
business of the citizens of Fortuna, the City Manager,
with input from Department Heads and the City
Attorney, shall set the agenda, reviewing same with
the Mayor. Each member of the Council shall be
provided with a copy of the City Council agenda in
accordance with the provisions as outlined in the
Brown Act. In order for this to occur the City Clerk
shall provide deadlines for the submittal of staff
reports to be used in the preparation of the City
Council agenda.

Council Members may, at a regularly scheduled
meeting, request items to be placed on future agendas
during the Future Agenda Items portion of the Council
meeting by Council consensus. The Council Member
referring the item may provide a brief description of
the subject to be printed for the agenda packet,
sufficient to inform the City Council and public of the nature of the item.

The City Council, after considering the referral, may
either refer the matter to staff to schedule as a future City Council agenda item or they may, by concurrence
of the majority, advise to not place on a future agenda.

5.5.2 Order of Agenda Items
The agenda format for the Fortuna City Council
regular meetings (first and third Mondays) may be
prepared to include, but not limited to the following
categories and/or sub-categories, not necessarily in the order herein reflected:

Call to Order/Flag Salute
Roll Call
Public Comment
Presentations, Recognitions, Proclamations
Report of Disbursements
Consent Calendar
Regular Business Items/Public Hearings
City Manager’s Report
Future Agenda Items
Council Reports and Communications
- 16 -
Oral Comments (for closed session, as needed)
Closed Session (as needed)
Adjournment

5.6 AGENDA ITEMS

5.6.1 Call to Order
The Mayor will call the meeting to order at 6:00 p.m.
and ask that audience members turn off pagers and/or
cell phones while in the Council Chambers.

5.6.2 Public Comment
Members of the public are entitled to speak on matters
of municipal concern not on the agenda, during
consideration of that portion of the meeting agenda
entitled “Oral Comments from the Public” when that
item is called by the Mayor. Each person is entitled to speak on any non-agendized item only once at any
meeting. Speakers addressing the City Council will be
limited to three minutes per speaker, or such a time as the presiding officer prescribes. Brief questions by
Council Members for clarifications may be posed and
answered, and Council Members may make requests
that items be placed on future agendas as described in

5.5.1 of this document, but in accordance with State
Law, no substantive discussion may take place unless
and until the matter properly appears on the agenda.

Once public comment has been closed it is
inappropriate for the public to speak except to answer
an inquiry of a Council Member addressed through
the Mayor.

5.6.3 Presentations, Recognitions, Proclamations
Presentations, recognitions and proclamations shall be
scheduled as necessary in recognition of persons or
groups, for the promotion of an event or service or
general information items to the Council. Requests for
Presentations must be submitted to the City Clerk in
advance of the agenda deadline. The City Manager
shall request approval from the Mayor as to the
appropriateness and scheduling of such presentations.

Upon approval by the Mayor, the City Clerk will then
coordinate the presentation with the requesting party
in order to schedule the item on any given agenda.

The requesting party determines whether or not he/she
will be present for acceptance of such presentation
and if not present, the item will be placed under the
Consent Calendar of the agenda.

5.6.4 Report of Disbursements
This is an oral report of disbursements for the City
and Redevelopment Agency processed through the
date of the meeting at which they are reported. No
action is required for this item. This topic is on the
agenda to satisfy the annual audit requirement
demonstrating that the City council is made aware that
the financial obligations of the city are being paid on a regular and routine basis.

5.6.5 Consent Calendar
Those items on the Agenda which are considered to be
of a routine and non-controversial nature by the City
Manager shall be listed on the Consent Calendar.

These items so listed shall be approved, adopted, and
accepted. by one motion of the Council.

Council Members may comment on Consent Calendar
items or ask for minor clarifications without the need
for pulling the item for separate consideration. Items
requiring deliberation should be pulled for separate
consideration.

At the request of any Council Member a Consent
Calendar Item shall be considered separately in the
order of the agenda following approval of the
remaining “Consent Calendar”.

5.6.6 Regular Business Items/Public Hearings
Regular Business items are those reports brought forth
for Council consideration and/or approval that are not
public hearings.

Public Hearings can be legislative or quasi judicial
and may be required on certain items as prescribed by
the municipal code or by state or federal law.

Legislative decisions generally involve fundamental
policy questions of jurisdiction-wide concern;
legislative decisions also can involve changes in
existing law to govern future situations. Public
hearings usually require adoption of an ordinance,
resolution or other action by the Council.

Public Comment will be sought on each regular
business item and public hearings.

Once a public hearing/public comment has been
closed it is inappropriate for the public to speak except to answer an inquiry of a Council Member addressed
through the Mayor. However, a public hearing may
be re-opened by a majority approval by the Council to
hear new information.
- 17 -

5.6.7 City Manager’s Report
The City Manager’s Report portion of the meeting
agenda provides an opportunity for the City Manager
to report on items of interest, status reports on
significant projects, updates on events or meetings
they participated in, and provide acknowledgement to
citizens or individuals.

The City Manager’s Report can be presented in Staff
Report format or may be done verbally.

5.6.8 Future Agenda Items
Future Agenda Items is a brief list of items to be
considered by Council at upcoming Council meetings
and serves as an opportunity for Council Members to
request items to be placed on a future agenda as
described in section 5.5.1 of this document.

5.6.9 Council Reports and Communications
The purpose of this time is to allow Council Members
the opportunity to provide a brief update or share
information regarding a particular matter.

Examples of appropriate communications would be
information of general interest received from outside
agencies, comments or inquiries received from
individuals and reports on meetings attended and other
items of community interest. This time is not
intended for action items.

Council Members shall govern themselves as to the
length of their comments. The Mayor has the
responsibility to assist Council Members in keeping
their comments brief.

State law8provides that Council can take action only
on such matters that have been properly noticed in
advance of the meeting, unless special circumstances
are found to exist. Formal action or approval on nonagendized items is not allowed.

5.6.10 Public Comment (before Closed Session)
Members of the Public may be heard on any item
under the Closed Session. Speakers addressing
Council will be limited to three minutes per speaker,
or such a time as the presiding officer prescribes. Be
advised that, by law, neither the City Council nor the
Board is able to discuss, deliberate or take action on
issues presented during Closed Session Oral
Comments.

8. California Govt. Code 54950, et seq.

5.6.11 Closed Sessions (as needed)
The Brown Act requires all council action to be
discussed and taken in open session, except for
specified and limited exceptions such as personnel
matters, real property negotiations, and pending or
threatened litigation.

ALL MATTERS DISCUSSED IN CLOSED
SESSION ARE CONFIDENTIAL.

Closed Sessions are held at the end of the regular
Council meeting and, if needed, can be continued to
the next regular meeting.

A. City Council Members shall consider all written
materials and verbal information provided to them on
matters that are confidential under State law in
complete confidence to insure that the City's position
is not compromised. No disclosure or mention of
information in these materials shall be made to anyone
other than Council Members, the City Attorney or
City Manager.

B. If the City Council in closed session has provided
direction to the City Manager or City Attorney on
proposed terms and conditions for any type of
negotiations whether it be related to property
acquisition or disposal, a proposed or pending claim
or litigation, and/or employee negotiations, all contact with the other party and/or attorney shall be limited to, and made by, the designated City staff representative
handling the negotiations, claim or litigation. No
Council Member shall have any contact or discussion
with the other party or its representative involved with the negotiation, claim or litigation during this time,
nor shall any Council Member communicate or
disclose any discussion conducted or information
received in closed sessions. All public statements,
information and press releases shall be handled
exclusively by the designated spokesperson.

5.6.12 Adjournment
Adjournment of a meeting is customarily by motion of
the City Council or can be accomplished by
unanimous consent and the Mayor simply declares the
meeting adjourned. A motion to adjourn to another
time can be done similarly, but is debatable only as to the time to which the meeting is to be adjourned.

5.7 TYPES OF COUNCIL ACTIONS
- 18 -

5.7.1 Consent Calendar
Those items on the Agenda which are considered to be
of a routine and non-controversial nature by the City
Manager shall be listed on the Consent Calendar.

These items so listed shall be approved, adopted, and
accepted. by one motion of the Council.

At the request of any Council Member a Consent
Calendar Item shall be considered separately in the
order of the agenda following approval of the
remaining “Consent Calendar”.

Typical Motion: “I move that Consent Calendar items
x - xx (with the exception of items which have been
removed) be approved as received.”
The Mayor confirms the motion and the second before
calling for the vote.

A second to any motion must be received before a
motion may be voted on.

5.7.2 Ordinances
Ordinances are the laws of the municipality. City
Councils are given the power to pass ordinances by
Government Code Section 37100 as long as those
ordinances are not in conflict with the laws and
Constitution of the State of California or the United
States.

Regular ordinances may only be adopted at a regular
City Council meeting or an adjourned regular City
Council meeting.9
Approval of an ordinance requires a first reading or
introduction and a second reading and adoption, with
at least five days between readings (except an urgency
ordinance). The passage of an ordinance requires the
affirmative votes of at least three Council Members.

A notice of intent to adopt with an ordinance summary
is posted in three public places10 at least five days
prior to adoption and a Notice of Adoption with an
ordinance summary is posted within 15 days of
adoption.11
An ordinance becomes effective 30 days after
adoption. The 30 day time frame is known as a

9. California Govt. Code 36934

10. City Hall, the Chamber of Commerce, and River Lodge

11. California Govt. Code Section 36933
referendum period. A referendum period is required
by state law and is a time frame in which any citizen
can file a petition challenging the legality of a recently adopted ordinance. An ordinance is an action that can
be repealed or amended only by a subsequent
ordinance.

First Reading
Typical motion: "I move to introduce and hold the
first reading of Ordinance xxxx-xxx, and read by title
only.

The Mayor confirms the motion and the second, and
then reads the ordinance title before calling for the
vote.

Second Reading
Typical Motion: "I move to hold the second reading
and adopt Ordinance xxxx-xxx, and read by title only”
The Mayor confirms the motion and the second, and
then reads the ordinance title before calling for the
vote.

A second to any motion must be received before a
motion may be voted on.

An ordinance requires a roll call vote.

5.7.3 Urgency Ordinances
In matters deemed by the City Council to warrant
immediate action to preserve peace, public safety or
health, an emergency ordinance may be passed
immediately upon introduction at either a regular or
special meeting, and can be effective immediately.

5.7.4 Resolutions
A resolution expresses the policy of the Council on
directing certain types of procedural or administrative actions. It requires only one reading and may be
changed by subsequent resolution.

A resolution is also required to award contracts and
authorize expenditure of funds.

Typical Motion: “I move to adopt Resolution xxxxxx and read by title only.

The Mayor confirms the motion and the second, and
then reads the resolution title before calling for the
- 19 -
vote.

A second to any motion must be received before a
motion may be voted on.

A resolution may be adopted by consent calendar
vote, a roll call vote or a voice vote.

5.7.5 Proclamations
A proclamation is a public declaration of the
Council’s endorsement of something such as a special
event or happening. Such a public announcement
usually is made at the request of the organization
sponsoring the event or happening and not for
functions of a personal nature including but not
limited to, a birthday or anniversary.

5.7.6 Minute Orders
These ordinarily indicate majority approval for a
procedural action. Minute orders are usually used for
disposition of business items on the agenda. Minute
Orders apply to items in which action was taken by
the council other than a resolution or ordinance.

5.7.7 Public Hearings
A public hearing is the open consideration of an issue
within a regular meeting of the City Council, for
which special public notice has been given and may
be required. During a specified portion of the hearing, any resident or concerned individual is invited to
present information, offer support or objection for the subject under consideration. Public hearings are
required for such items including but not limited to,
zoning changes, annexations, and fees or rates.

A public hearing may be continued or re-continued12
to a subsequent meeting following the same
procedures set forth in section 5.3.3 of this document.

6. CITY ORGANIZATION

6.1 CITY MANAGER
The City Manager, appointed by the City Council, is
responsible for the overall administration of the City
in response to the policies and programs established
by the City Council. The City Manager is responsible
for forecasting the program and service needs of the
City and its related financial, personnel, and capital
improvement requirements.

12. California Govt. Code Section 54955.1
Among the programs conducted through the City
Manager are the overall direction of all City
departments, development and implementation of the
City’s annual budget, and providing overall planning
for future City operations.

6.2 CITY ATTORNEY
The City Attorney, appointed by the City Council, is
responsible for providing necessary legal services and
guidance to the City Council, the City Manager,
department managers, and City boards, commissions
and committees to ensure that City functions are
performed on a sound legal basis.

6.3 CITY EMPLOYEES
City employees comprise the majority of City
government. They perform the day-to-day functions
necessary to provide municipal services. Department
managers administer specific functions of City
government and are responsible to the City Manager.

7. ADVISORY COMMISSIONS AND BOARDS13

7.1 OVERVIEW
The city council is authorized to establish boards,
commissions and committees. These boards,
committees and commissions shall be organized and
governed by Section 2.20 of the municipal code,
unless otherwise stated in the ordinance establishing
said board, committee or commission. (Ord. 2006-663
§ 2).

7.1.1 Qualifications
Membership on such bodies shall be representative of
the entire community insofar as possible, and
members on such boards, commissions and
committees shall be willing to serve as a civic
responsibility and without compensation. No member
of any board or commission shall hold any paid office
or employment in the city government, unless, by
resolution, such membership is specifically authorized
or required. Appointments of qualified non-city
residents shall require a four-fifths vote of the council for confirmation. In order to be eligible for
appointment to any board or commission, a person
shall be a qualified registered elector of the city of
Fortuna, or be the owner of a business located within

13. Fortuna Municipal Code Section 2.20
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the city limits. However, in no event shall less than a majority of any board or commission be made up of
qualified registered electors of the city. (Ord. 2006-
663 § 2).

7.1.2 Temporary committees
The mayor and the city manager, with the approval of
the council, may appoint from time to time such
temporary committees as are deemed advisable to
render counsel and advice to the council and the city
manager on any designated matters or subjects within
the jurisdiction of the council and the city manager.

Membership on such committees shall not be limited
by the requirements of this chapter. (Ord. 2006-663 §
2).

7.1.3 Appropriations
The council shall include in the annual budget such
appropriations of funds as in its opinion shall be
sufficient for the efficient and proper functioning of
such boards, commissions and committees. (Ord.
2006-663 § 2).

7.1.4 Appointments – Terms
A. The members of each such board or commission
shall be appointed by the mayor with the approval of
the council. The members thereof shall serve for a
designated term and until their respective successors
are appointed and qualified.

B. The terms of the commissioners shall be
staggered in order to provide continued continuity to
the board. No more than one-half plus one of the
board members’ terms may expire in a given year.
(Ord. 2006-663 § 2).

7.1.5 Vacancies
A. If a member of a board, commission, or
committee fails to file a financial disclosure form, if required by the city’s conflict of interest code, in the manner and at the time required by law, or violates
FMC 2.20.100, Conflict of interest, that office shall
become vacant and so declared by the council.

B. Any vacancies in any board, commission, or
committee, from whatever cause arising, shall be
filled by appointment by the mayor with the
approval of the council. When a vacancy occurs, any
appointment to fill such vacancy shall be for the
unexpired term.

C. If a member of a board, commission, or
committee absents himself from 25 percent of the
scheduled meetings, or three consecutive regular
meetings of such board, commission, or committee,
unless by permission of such board or commission
expressed in its official minutes, or ceases to be a
qualified elector of the city, his office shall become
vacant and shall be so declared by the council.

D. Any member of a board, commission, or
committee may be removed with or without cause by
the mayor with approval of the city council.

E. Applications for all scheduled and unscheduled
appointments shall be solicited as determined by the
city manager. (Ord. 2006-663 § 2).

7.1.6 Officers
A. At the first regular meeting in January of every
year, each of such boards, commissions and
committees shall organize by electing a chairperson
and vice-chairperson from its membership to serve
at the pleasure of such board or commission. In the
absence or disability of the chairperson and vicechairperson, each such board or commission may designate a temporary chairperson.

B. The city manager shall designate a staff
member(s) who shall provide for the recording of
minutes for each such board or commission, keep a
record of its proceedings and transactions, provide
staff assistance, and act as principal staff advisor.
(Ord. 2006-663 § 2).

7.1.7 Meetings – Rules and regulations – Quorum
A. Meetings. Each such board or commission shall
hold regularly scheduled meetings at a time to be
designated by the board or commission and such
special meetings as such board or commission may
require. Insofar as possible, all meetings of such
boards, commissions and committees shall be held
either in the council chambers or in the conference
room of the City Hall. All meetings shall be open to
the public, and shall comply with the public meeting
provisions of the Brown Act.

B. Rules, Regulations, and Records. Each board or
commission may prescribe its own rules and
regulations for the transaction of its business, which
rules and regulations shall be subject to the approval
of the city council, and shall be kept on file in the
office of the city clerk where they shall be available
for public inspection. Each board or commission
shall keep a written record of its meetings,
- 21 -
resolutions, transactions, findings, and
determinations, copies of which shall be kept on file
in the office of the city clerk.

C. Quorum. A majority of the members of every
such board or commission shall constitute a quorum
for the transaction of business, and the affirmative or negative vote of a majority of the entire membership
shall be necessary for the final transaction of any
business. (Ord. 2006-663 § 2).

7.1.8 Compensation.

Unless otherwise provided for, the members of
boards, commissions, and committees shall serve
without compensation for their services as such but
may receive reimbursement for necessary traveling
and other expenses incurred on official duty when
such expenditures have been authorized by the
council. (Ord. 2006-663 § 2).

7.1.9 Conflict of interest.

No member of a board, commission, or committee
shall be or become directly or indirectly financially
interested in or with the performance of any contract,
work, or business, or in the sale of any article, the
expense, price or consideration of which is payable
from the city treasury or treasury of the
redevelopment agency if such contract, work,
business, or sale falls within the advisory duties
delegated to the board, commission, or committee
upon which such member is serving; and provided
further, that no member shall be deemed to be
financially interested, within the meaning of the
foregoing provisions, if such interest is not a
prohibited interest under, and disclosure is made in
accordance with, the provisions of California
Government Code, or under the provisions of the
Political Reform Act of 1974. (Ord. 2006-663 § 2).

7.2 HISTORICAL COMMISSION

7.2.1 Established – Purpose
There is created a historical commission, which shall
consist of five members.

The historical commission is established specifically
for the preservation of the Northwestern Pacific Depot
building which is a structure of significant historic and architectural worth, and for the administration of the
museum to be housed in said building which will
provide reminders of past eras, events, and persons
important to the city. The museum will be a receptacle
for future generations as an example of physical
amenities used by past generations. (Ord. 2006-663 §
2; Ord. 97-611 § 2; Ord. 355 § 1, 1975).

7.2.2 Membership terms
The historical commission shall consist of five
members. The term of office for historical
commission members shall be three years. (Ord. 2006-
663 § 2; Ord. 2005-654 § 2; Ord. 98-616 § 2; Ord. 97-
611 § 2; Ord. 90-558; Ord. 355 § 2, 1975).

7.2.3 Council representative
The mayor may designate one member of the city
council to attend the meetings of the historical
commission and provide the council with periodic
reports concerning the commission’s activities. While
attending commission meetings, the designated
council member shall observe such rules of conduct as
may be adopted and amended by the council from
time to time. (Ord. 2006-663 § 2; Ord. 98-616 § 2;
Ord. 97-611 § 2; Ord. 355 § 3, 1975).

7.2.4 Museum operation
A. The commission shall determine the types of
material artifacts to be displayed in the museum.

B. The commission shall recommend hours the
museum will remain open.

C. The commission is authorized to accept material
to be displayed either as gifts or loans and shall
determine how such material will be marked and
identified. (Ord. 2006-663 § 2; Ord. 97-611 § 2;
Ord. 355 § 4, 1975).

7.3 PARKS AND RECREATION

COMMISSION

7.3.1 Established – Purpose
There is created a parks and recreation commission
which shall consist of five members.

The commission is created to serve in an advisory
capacity to the city council, city manager and the city staff in all matters pertaining to public parks and
recreation. (Ord. 2008-676 § 2; Ord. 2006-663 § 2;
Ord. 97-611 § 2; Ord. 82-460 § 1).

7.3.2 Membership Terms
The parks and recreation commission shall consist of
five members. The term of office for parks and
recreation commissioners shall be three years. (Ord.
2008-676 § 2; Ord. 2006-663 § 2; Ord. 97-611 § 2).
- 22 -

7.3.3 Council Representative
The mayor may designate one member of the city
council to attend the meetings of the parks and
recreation commission and provide the council with
periodic reports concerning the commission’s
activities. While attending commission meetings, the
designated council member shall observe such rules of
conduct as may be adopted and amended by the
council from time to time. (Ord. 2006-663 § 2; Ord.
97-611 § 2; Ord. 82-460 § 1).

7.4 PLANNING COMMISSION 14

7.4.1 Established – Purpose
There is created a planning commission to be known
as the Fortuna planning commission, which shall
consist of seven members, and one alternate member.

A. The commission shall exercise all the powers and
duties provided for a city planning commission
under the laws of the state and such additional duties
as may be assigned by the city council and by
provision as set forth in the city subdivision and
zoning ordinances.

B. The provisions of this section shall not be
construed as affecting or limiting, or as a
prerequisite to, the powers of the city council or the
electors of the city to legislate, or in any way
conflict with, the powers and duties of the city
council and the other boards or departments of the
city. (Ord. 2006-663 § 2; Ord. 2000-622 § 2; Ord.
97-611 § 2; Ord. 77-369; Ord. 348 § 2(A), 1974).

7.4.2 Membership Terms
The planning commission shall consist of seven
members, and one alternate. The term of office for
planning commissioners shall be four years and for
the alternate shall be two years. (Ord. 2006-663 § 2;
Ord. 2000-622 § 2; Ord. 97-611 § 2; Ord. 348 § 2(B),
1974).

7.4.3 Compensation
Each planning commissioner shall receive $30.00 for
each meeting they attend to cover their out-of-pocket
expenses. (Ord. 2006-663 § 2; Ord. 2000-622 § 2).

14. For statutory provisions regarding the planning
commission, see Government Code § 65100 et seq.

7.4.4 Alternate Member
A. In addition to the seven regular members, the
mayor, with the approval of the city council, shall
appoint one resident alternate commissioner for a
term of two years, who shall have all of the powers
and duties of a regular commissioner except his or
her right to vote shall be allowed and have legal
effect only when seated as an acting commissioner
in the absence of one of the regular commissioners.

B. When a permanent vacancy is created on the
commission, the alternate shall fill that vacancy as a
regular member for the remainder of that
commissioner’s term of office. A new alternate
member shall be appointed by the mayor.

C. The alternate shall, like regular members, attend
the regular and special meetings of the commission.

The alternate shall review staff reports and
documents and otherwise prepare for such meetings.

At such meetings the alternate shall be identified for
the record.

D. The alternate shall publicly announce any items
on the agenda that he/she is disqualified from
participating in because of a conflict of interest. If, as a result of absences or conflicts of interest by the regular members at a regular or special meeting, the
alternate shall move to the seat of a regular member
and shall participate as a regular member.

E. The qualifications, appointment, removal and
other requirements applicable to the alternate shall
be the same as those for regular members of the
commission. The alternate shall also be subject to
the requirements of and shall abide by the Ralph M.

Brown Act, the Political Reform Act and other law
applicable to the regular members of the
commission. (Ord. 2006-663 § 2; Ord. 2003-641 §
1).

7.5 DESIGN REVIEW BOARD
There is created a design review board which shall
consist of five members.

7.5.1 Established – Purpose
The purpose of the design review board is to review
the design, layout, and other features of proposed
development in keeping with the intent and purposes
set forth in FMC 17.61.010. (Ord. 2006-663 § 2; Ord.
2005-654 § 2; Ord. 97-611 § 2).
- 23 -

7.5.2 Membership Terms
The design review board shall consist of five members
as follows:

A. Four people to represent the community at large;
B. A planning commissioner. The planning
commissioner shall have an alternate.

The term of office for design review board members
shall be four years. (Ord. 2006-663 § 2; Ord. 97-611 §
2).

7.5.3 Adoption of Manual
The board shall adopt a design review manual
containing its design policies. Annually, the design
review manual shall be reviewed and revised as
appropriate. The city council shall approve the design
review manual and revisions. (Ord. 2006-663 § 2;
Ord. 97-611 § 2).

7.5.4 Delegation of Decision-Making Authority by
the Design Review Board.

The design review board may delegate its authority to
conduct conceptual design review or final design
review regarding any particular project or one or more
categories of projects to the zoning administrator. The zoning administrator shall be designated by the city
manager. (Ord. 2006-663 § 2; Ord. 97-611 § 2).
.

A-1

8. APPENDIX

8.1 "Rosenberg's Rules of Order" (Simple Rules
of Parliamentary Procedure for the 21st
Century) By Dave Rosenberg
Introduction
The rules of procedure at meetings should be simple
enough for most people to understand. Unfortunately,
that has not always been the case. Virtually all clubs, associations, boards, councils and bodies follow a set
of rules - "Robert's Rules of Order" - which are
embodied in a small, but complex, book. Virtually no
one I know has actually read this book cover to cover.

Worse yet, the book was written for another time, and
for another purpose. If one is chairing or running a
Parliament, then "Robert's Rules of Order" is a dandy
and quite useful handbook for procedure in that
complex setting. On the other hand, if one is running a meeting of, say, a 5-member body with a few
members of the public in attendance, a simplified
version of the rules of parliamentary procedure is in
order.

Hence, the birth of "Rosenberg's Rules of Order."
What follows is my version of the rules of
parliamentary procedure, based on my 20 years of
experience chairing meetings in state and local
government. These rules have been simplified for the
smaller bodies we chair or in which we participate,
slimmed down for the 21st Century, yet retaining the
basic tenets of order to which we have grown
accustomed.

This treatise on modern parliamentary procedure is
built on a foundation supported by the following four
pillars:
(1) Rules should establish order. The first purpose of
rules of parliamentary procedure is to establish a
framework for the orderly conduct of meetings.
(2) Rules should be clear. Simple rules lead to wider
understanding and participation. Complex rules create
two classes: those who understand and participate; and
those who do not fully understand and do not fully
participate.
(3) Rules should be user friendly. That is, the rules
must be simple enough that the public is invited into
the body and feels that it has participated in the
process.
(4) Rules should enforce the will of the majority while protecting the rights of the minority. The ultimate
purpose of rules of procedure is to encourage
discussion and to facilitate decision-making by the
body.

In a democracy, majority rules. The rules must enable
the majority to express itself and fashion a result,
while permitting the minority to also express itself,
but not dominate, and fully participate in the process.

The Role of the Chair
While all members of the body should know and
understand the rules of parliamentary procedure, it is
the Chair of the body who is charged with applying
the rules in the conduct of the meeting. The Chair
should be well versed in those rules. The Chair, for all intents and purposes, makes the final ruling on the
rules every time the Chair states an action. In fact, all decisions by the Chair are final unless overruled by
the body itself.

Since the Chair runs the conduct of the meeting, it is
usual courtesy for the Chair to play a less active role in the debate and discussion than other members of
the body. This does not mean that the Chair should not
participate in the debate or discussion. To the
contrary, the Chair as a member of the body has the
full right to participate in the debate, discussion and decision-making of the body. What the Chair should
do, however, is strive to be the last to speak at the
discussion and debate stage, and the Chair should not
make or second a motion unless the Chair is
convinced that no other member of the body will do
so at that point in time.

The Basic Format for an Agenda Item Discussion
Formal meetings normally have a written, often
published agenda. Informal meetings may have only
an oral or understood agenda. In either case, the
meeting is governed by the agenda and the agenda
constitutes the body's agreed-upon roadmap for the
meeting. And each agenda item can be handled by the
Chair in the following basic format:

A-2
First, the Chair should clearly announce the agenda
item number and should clearly state what the agenda
item subject is. The Chair should then announce the
format (which follows) that will be followed in
considering the agenda item.

Second, following that agenda format, the Chair
should invite the appropriate person or persons to
report on the item, including any recommendation that
they might have. The appropriate person or persons
may be the Chair, a member of the body, a staff
person, or a committee chair charged with providing
input on the agenda item.

Third, the Chair should ask members of the body if
they have any technical questions of clarification. At
this point, members of the body may ask clarifying
questions to the person or persons who reported on the
item, and that person or persons should be given time
to respond.

Fourth, the Chair should invite public comments, or if
appropriate at a formal meeting, should open the
public meeting for public input. If numerous members
of the public indicate a desire to speak to the subject, the Chair may limit the time of public speakers. At the conclusion of the public comments, the Chair should
announce that public input has concluded (or the
public hearing as the case may be is closed).

Fifth, the Chair should invite a motion. The Chair
should announce the name of the member of the body
who makes the motion.

Sixth, the Chair should determined if any member of
the body wishes to second the motion. The Chair
should announce the name of the member of the body
who seconds the motion. (It is normally good practice
for a motion to require a second before proceeding
with it, to ensure that it is not just one member of the body who is interested in a particular approach.

However, a second is not an absolute requirement, and
the Chair can proceed with consideration and vote on
a motion even when there is no second. This is a
matter left to the discretion of the Chair.)
Seventh, if the motion is made and seconded, the
Chair should make sure everyone understands the
motion. This is done in one of three ways: (1) The
Chair can ask the maker of the motion to repeat it. (2) The Chair can repeat the motion. (3) The Chair can
ask the secretary or the clerk of the body to repeat the motion.

Eighth, the Chair should now invite discussion of the
motion by the body. If there is no desired discussion,
or after the discussion has ended, the Chair should
announce that the body will vote on the motion. If
there has been no discussion or very brief discussion,
then the vote on the motion should proceed
immediately and there is no need to repeat the motion.

If there has been substantial discussion, then it is
normally best to make sure everyone understands the
motion by repeating it.

Ninth, the Chair takes a vote. Simply asking for the
"ayes", and then asking for the "nays" normally does
this. If members of the body do not vote, then they
"abstain". Unless the rules of the body provide
otherwise (or unless a super-majority is required as
delineated later in these rules) then a simple majority determines whether the motion passes or is defeated.

Tenth, the Chair should announce the result of the
vote and should announce what action (if any) the
body has taken. In announcing the result, the Chair
should indicate the names of the members of the body,
if any, who voted in the minority on the motion. This
announcement might take the following form: "The
motion passes by a vote of 3-2, with Smith and Jones
dissenting. We have passed the motion requiring 10
days notice for all future meetings of this body."
Motions in General
Motions are the vehicles for decision-making by a
body. It is usually best to have a motion before the
body prior to commencing discussion of an agenda
item. This helps the body focus.

Motions are made in a simple two-step process. First,
the Chair should recognize the member of the body.

Second, the member of the body makes a motion by
preceding the member's desired approach with the
words: "I move . . . . "
So, a typical motion might be: "I move that we give
10-day's notice in the future for all our meetings."
The Chair usually initiates the motion by either (1)
Inviting the members of the body to make a motion.
"A motion at this time would be in order." (2)
Suggesting a motion to the members of the body. "A
motion would be in order that we give 10-day's notice
A-3
in the future for all our meetings." (3) Making the
motion. As noted, the Chair has every right as a
member of the body to make a motion, but should
normally do so only if the Chair wishes to make a
motion on an item but is convinced that no other
member of the body is willing to step forward to do so
at a particular time.

The Three Basic Motions
There are three motions that are the most common and
recur often at meetings:

The basic motion. The basic motion is the one that
puts forward a decision for the body's consideration. A basic motion might be: "I move that we create a 5-
member committee to plan and put on our annual
fundraiser."
The motion to amend. If a member wants to change a
basic motion that is before the body, they would move
to amend it. A motion to amend might be: "I move
that we amend the motion to have a 10-member
committee." A motion to amend takes the basic
motion which is before the body and seeks to change
it in some way.

The substitute motion. If a member wants to
completely do away with the basic motion that is
before the body, and put a new motion before the
body, they would move a substitute motion. A
substitute motion might be: "I move a substitute
motion that we cancel the annual fundraiser this year." "Motions to amend" and "substitute motions" are
often confused. But they are quite different, and their effect (if passed) is quite different. A motion to amend seeks to retain the basic motion on the floor, but
modify it in some way. A substitute motion seeks to
throw out the basic motion on the floor, and substitute a new and different motion for it. The decision as to
whether a motion is really a "motion to amend" or a
"substitute motion" is left to the chair. So that if a
member makes what that member calls a "motion to
amend", but the Chair determines that it is really a
"substitute motion", then the Chair's designation
governs.

Multiple Motions Before the Body
There can be up to three motions on the floor at the
same time. The Chair can reject a fourth motion until
the Chair has dealt with the three that are on the floor and has resolved them.

When there are two or three motions on the floor
(after motions and seconds) at the same time, the vote
should proceed first on the last motion that is made.

So, for example, assume the first motion is a basic
"motion to have a 5-member committee to plan and
put on our annual fundraiser." During the discussion
of this motion, a member might make a second motion
to "amend the main motion to have a 10-member
committee, not a 5-member committee to plan and put
on our annual fundraiser." And perhaps, during that
discussion, a member makes yet a third motion as a
"substitute motion that we not have an annual
fundraiser this year." The proper procedure would be
as follows:

First, the Chair would deal with the third (the last)
motion on the floor, the substitute motion. After
discussion and debate, a vote would be taken first on
the third motion. If the substitute motion passed, it
would be a substitute for the basic motion and would
eliminate it. The first motion would be moot, as would
the second motion (which sought to amend the first
motion), and the action on the agenda item would be
completed on the passage by the body of the third
motion (the substitute motion). No vote would be
taken on the first or second motions. On the other
hand, if the substitute motion (the third motion) failed then the Chair would proceed to consideration of the
second (now, the last) motion on the floor, the motion
to amend.

Second, if the substitute motion failed, the Chair
would now deal with the second (now, the last)
motion on the floor, the motion to amend. The
discussion and debate would focus strictly on the
amendment (should the committee by 5 members or
10 members). If the motion to amend passed the Chair
would now move to consider the main motion (the
first motion) as amended. If the motion to amend
failed the Chair would now move to consider the main
motion (the first motion) in its original format, not
amended.

Third, the Chair would now deal with the first motion
that was placed on the floor. The original motion
would either be in its original format (5-member
committee), or, if amended, would be in its amended
format (10-member committee). And the question on
the floor for discussion and decision would be
A-4
whether a committee should plan and put on the
annual fundraiser.

To Debate or Not to Debate
The basic rule of motions is that they are subject to
discussion and debate. Accordingly, basic motions,
motions to amend, and substitute motions are all
eligible, each in their turn, for full discussion before and by the body. The debate can continue as long as
members of the body wish to discuss an item, subject
to the decision of the Chair that it is time to move on and take action.

There are exceptions to the general rule of free and
open debate on motions. The exceptions all apply
when there is a desire of the body to move on. The
following motions are not debatable (that is, when the
following motions are made and seconded, the Chair
must immediately call for a vote of the body without
debate on the motion):

A motion to adjourn. This motion, if passed, requires
the body to immediately adjourn to its next regularly
scheduled meeting. It requires a simple majority vote.

A motion to recess. This motion, if passed, requires
the body to immediately take a recess. Normally, the
Chair determines the length of the recess which may
be a few minutes or an hour. It requires a simple
majority vote.

A motion to fix the time to adjourn. This motion, if
passed, requires the body to adjourn the meeting at the specific time set in the motion. For example, the
motion might be: "I move we adjourn this meeting at
midnight." It requires a simple majority vote.

A motion to table. This motion, if passed, requires
discussion of the agenda item to be halted and the
agenda item to be placed on "hold". The motion can
contain a specific time in which the item can come
back to the body: "I move we table this item until our
regular meeting in October." Or the motion can
contain no specific time for the return of the item, in which case a motion to take the item off the table and
bring it back to the body will have to be taken at a
future meeting. A motion to table an item (or to bring
it back to the body) requires a simple majority vote.

A motion to limit debate. The most common form of
this motion is to say: "I move the previous question"
or "I move the question" or "I call the question."
When a member of the body makes such a motion, the
member is really saying: "I've had enough debate.

Let's get on with the vote". When such a motion is
made, the Chair should ask for a second, stop debate,
and vote on the motion to limit debate. The motion to
limit debate requires a 2/3 vote of the body. Note: that a motion to limit debate could include a time limit.

For example: "I move we limit debate on this agenda
item to 15 minutes." Even in this format, the motion to limit debate requires a 2/3 vote of the body. A similar motion is a motion to object to consideration of an
item. This motion is not debatable, and if passed,
precludes the body from even considering an item on
the agenda. It also requires a 2/3 vote.

Majority and Super-Majority Votes
In a democracy, a simple majority vote determines a
question. A tie vote means the motion fails. So in a 7- member body, a vote of 4-3 passes the motion. A vote
of 3-3 with one abstention means the motion fails. If
one member is absent and the vote is 3-3, the motion
still fails.

All motions require a simple majority, but there are a
few exceptions. The exceptions come up when the
body is taking an action which, effectively, cuts off
the ability of a minority of the body to take an action or discuss and item. These extraordinary motions
require a 2/3 majority (a super-majority) to pass:

Motion to limit debate. Whether a member says "I
move the previous question" or "I move the question"
or "I call the question" or "I move to limit debate", it all amounts to an attempt to cut off the ability of the minority to discuss an item, and it requires a 2/3 vote to pass.

Motion to close nominations. When choosing officers
of the body (like the Chair) nominations are in order
either from a nominating committee or from the floor
of the body. A motion to close nominations effectively
cuts off the right of the minority to nominate officers, and it requires a 2/3 vote to pass.

Motion to object to the consideration of a question.

Normally, such a motion is unnecessary since the
objectionable item can be tabled, or defeated straight
up. However, when members of a body do not even
want an item on the agenda to be considered, then
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such a motion is in order. It is not debatable, and it
requires a 2/3 vote to pass.

Motion to suspend the rules. This motion is debatable,
but requires a 2/3 vote to pass. If the body has its own rules of order, conduct or procedure, this motion
allows the body to suspend the rules for a particular
purpose. For example, the body (a private club) might
have a rule prohibiting the attendance at meetings by
non-club members. A motion to suspend the rules
would be in order to allow a non-club member to
attend a meeting of the club on a particular date or on a particular agenda item.

The Motion to Reconsider
There is a special and unique motion that requires a
bit of explanation all by itself: the motion to
reconsider. A tenet of parliamentary procedure is
finality. After vigorous discussion, debate, perhaps
disagreement and a vote, there must be some closure
to the issue. And so, after a vote is taken, the matter is deemed closed, subject only to a re-opener if a proper
motion to reconsider is made.

A motion to reconsider requires a majority vote to
pass, but there are two special rules that apply only to the motion to reconsider. First, is timing. A motion to reconsider must be made at the meeting where the
item was first voted upon or at the very next meeting
of the body. A motion to reconsider made at a later
time is untimely. (The body, however, can always
vote to suspend the rules and by a 2/3 majority, can
allow a motion to reconsider to be made at another
time.) Second, a motion to reconsider can only be
made by certain members of the body. Accordingly, a
motion to reconsider can only be made by a member
who voted in the majority on the original motion. If
such a member has a change of heart, he or she can
make the motion to reconsider (any other member of
the body may second the motion). If a member who
voted in the minority seeks to make the motion to
reconsider, it must be ruled out of order. The purpose
of this rule is finality. If a member of the minority
could make a motion to reconsider, then the item
could be brought back to the body again and again.

That would defeat the purpose of finality.

If the motion to reconsider passes, then the original
matter is back before the body, and a new original
motion is then in order. The matter can be discussed
and debated as if it were on the floor for the first time.

Courtesy and Decorum
The rules of order are meant to create an atmosphere
where the members of the body and the members of
the public can attend to business efficiently, fairly and with full participation. At the same time, it is up to the Chair and the members of the body to maintain
common courtesy and decorum. Unless the setting is
very informal, it is always best for only one person at a time to have the floor, and it is always best for every speaker to be first recognized by the Chair before
proceeding to speak.

The Chair should always ensure that debate and
discussion of an agenda item focuses on the item and
the policy in question, not the personalities of the
members of the body. Debate on policy is healthy,
debate on personalities is not. The Chair has the right to cut off discussion that is too personal, is too loud, or is too crude.

Debate and discussion should be focused, but free and
open. In the interest of time, the Chair may, however,
limit the time allotted to speakers, including members
of the body.

Can a member of the body interrupt the speaker? The
general rule is "no." There are, however, exceptions.

A speaker may be interrupted for the following
reasons:

Privilege. The proper interruption would be: "point of
privilege." The Chair would then ask the interrupter to "state your point." Appropriate points of privilege
relate to anything that would interfere with the normal comfort of the meeting. For example, the room may
be too hot or too cold, or a blowing fan might interfere with a person's ability to hear.

Order. The proper interruption would be: "point of
order." Again, the Chair would ask the interrupter to
"state your point." Appropriate points of order relate
to anything that would not be considered appropriate
conduct of the meeting. For example, if the Chair
moved on to a vote on a motion that permits debate
without allowing that discussion or debate.

Appeal. If the Chair makes a ruling that a member of
the body disagrees with, that member may appeal the
ruling of the chair. If the motion is seconded, and after debate, if it passes by a simple majority vote, then the ruling of the Chair is deemed reversed.

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Call for orders of the day. This is simply another way
of saying, "Let's return to the agenda." If a member
believes that the body has drifted from the agreedupon agenda, such a call may be made. It does not require a vote, and when the Chair discovers that the
agenda has not been followed, the Chair simply
reminds the body to return to the agenda item properly
before them. If the Chair fails to do so, the Chair's
determination may be appealed.

Withdraw a motion. During debate and discussion of a
motion, the maker of the motion on the floor, at any
time, may interrupt a speaker to withdraw his or her
motion from the floor. The motion is immediately
deemed withdrawn, although the Chair may ask the
person who seconded the motion if he or she wishes to
make the motion, and any other member may make
the motion if properly recognized.

Special Notes About Public Input
The rules outlined above will help make meetings
very public-friendly. But in addition, and particularly for the Chair, it is wise to remember three special
rules that apply to each agenda item:

Rule One: Tell the public what the body will be doing.

Rule Two: Keep the public informed while the body is
doing it.

Rule Three: When the body has acted, tell the public
what the body did.

About the Author
Dave Rosenberg is a Yolo Superior Court Judge.

Formerly, he served over 20 years in local
government, including 12 years on the Davis City
Council (with two terms as Mayor) and 7 years on the
Yolo County Board of Supervisors (with two terms as
Chairman of the Board). He has been Chairman or
presiding officer of numerous boards, commissions
and organizations, spanning over three decades
including the California State Lottery Commission,
the California State Victim Compensation and
Government Claims Board (formerly known as the
Board of Control), the Yolo County Economic
Development Commission, the Yolo County Criminal
Justice Cabinet, the Davis Odd Fellows Lodge, and
others. He currently serves as Presiding Judge of the
Yolo Superior Court. Rosenberg has taught workshops
on "Rosenberg's Rules of Order" for over a decade, to
county supervisors, mayors, city council members and
others. His "Rosenberg's Rules of Order" have been
adopted by numerous cities and other jurisdictions and
organizations throughout California.

City Manager’s Report

STAFF REPORT
City Manager's Report
DATE: October 21, 2024
TO: Honorable Mayor and City Council Members
FROM: Amy Nilsen, Interim City Manager

1. Upcoming Council Meeting Dates
*Special Meeting/Workshop
Monday, November 4, 2024
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall
Monday, November 18, 2024
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall

2. Upcoming Planning Commission Meeting Dates
Tuesday, October 22, 2024
6:00 p.m.
**CANCELLED**
Regular Planning Commission Meeting
Tuesday, November 12, 2024
6:00 p.m.

Regular Planning Commission Meeting
Council Chambers at City Hall

3. Upcoming Measure E Meeting Dates
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, November 6, 2024
2:30 p.m.

Regular RCRPD Meeting
Council Chambers at City Hall

5. Upcoming Fortuna Business Improvement District (FBID) Meeting Dates Tuesday, October 22, 2024
8:30 a.m.

Regular FBID Meeting
Council Chambers at City Hall

6. Verbal Report