Fortuna City Council
May 5, 2025

Meeting Agenda
Monday, May 5, 2025 at 6:00 pm
621 11th Street, Fortuna CA
Regular Meeting Agenda
Zoom Option: 1-669-900-9128 Meeting ID: 822 6714 0705 Password: 438694 • We May Disagree, But We Will Be Respectful of One Another • All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council • Personal Attacks are Unacceptable
• The City Council May Take Action on any Item on this Agenda.

CALL TO ORDER / FLAG SALUTE / ROLL CALL
Council
Staff
• Council Member Kyle Conley
• Council Member Carlos Diaz
• Council Member Abe Stevens
• Mayor Pro Tem Tami Trent
• Mayor Mike Johnson
• City Manager Amy Nilsen
• City Clerk Siana L. Emmons

1. PROCLAMATIONS
a. National Police Week

2. ORAL COMMENTS FROM THE PUBLIC
Members of the Public may be heard at this time on any item within the subject matter jurisdiction of the City that is not on the Public Meeting Agenda. It is the practice of this Council to hold public

3. comment for every item of business on the agenda at the time that item is heard. If a speaker cannot stay for a particular item of business, they may be heard during this time. Comments concerning the Consent Calendar may also be heard at this time. Speakers addressing the Council will be limited to 3 minutes per speaker. Be advised that, by law, the City Council can only deliberate or take action on items that are included on the agenda.

CONSENT CALENDAR
These matters are routine in nature and are usually approved by a single vote. Any member of the Council may pull a particular item for further discussion. a. City Council Minutes – April 21, 2025 (Special Meeting) b. City Council Minutes – April 21, 2025 (Regular Meeting) c. Report of Disbursements
Approve the Grant Funds from the State Coastal Conservancy for the Acquisition of 237 Acres of Lower Eel River Wetlands and Authorize the City Manager to Negotiate and Execute all Grant Agreement Documents Resolution 2025-11
d.

Review and Approve Mayor’s Recommendation of Appointees to the Planning Commission
e.

Approve Police Lieutenant Jason Kadle as an Authorized Signer for the City of Fortuna with US Bank
f.
g. Hydration Station Donation

4. CITY COUNCIL BUSINESS
a. Feasibility Analysis for the Fortuna Enhanced Infrastructure Finance District Approve a $49,750 Supplemental Budget Request and Authorize the City Manager to Execute a Professional Services Agreement with Land Logistics, Inc. to Prepare a Commercial Cannabis Program and Ordinance b.

Conduct Annual Public Hearing for the Fortuna Business Improvement District Assessment and Consider Adopting Resolution 2025-12 c.

Conduct Second Reading and Adopt Ordinance 2025-774, amending the Fortuna Business Improvement District regulations
d.
e. Adult Sports Team Processing Fee

5. 6. CITY MANAGER’S REPORT

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

7. CITY COUNCIL REPORTS AND COMMENTS
Council Member Kyle Conley
Redwood Region Economic Development Corporation (RREDC) Alternate, Parks & Recreation Commission, Humboldt Transit Authority Alternate a.

Council Member Carlos Diaz
Redwood Region Economic Development Corporation (RREDC), Redwood Coast Energy Authority (RCEA), Parks & Recreation Commission Alternate b.

8. Contact: Siana L. Emmons, City Clerk ([email protected] 707-725-1409) | Agenda published on 05/01/ 2025 at 3:16 PM
c. Council Member Abe Stevens
Mayor Pro Tem Tami Trent
Humboldt Transit Authority (HTA), Indian Gaming Commission, League of California Cities Public Safety Commission, Fortuna Business Improvement District (FBID) d.

Mayor Mike Johnson
Humboldt County Association of Governments (HCAOG), Historical Commission, League of California Cities Transportation, Communication, & Public Works Commission e.

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

9. In Recognition of
National Police Week
May 11th – 17th, 2025
WHERAS, in 1962 President John F. Kennedy signed a proclamation which designated May 15th as National Peace Officers Memorial Day and the week in which that date falls as “National Police Week”; and
WHEREAS, law enforcement officers are guardians of life and property, defenders of the individual rights of a free people, soldiers in the war against crime, and dedicated to the preservation of life, liberty, and the pursuit of happiness; and WHEREAS, it is known that every two days an American police officer dies in the line of duty, our community joins with other cities and town to honor all peace officers everywhere; and WHEREAS, the City of Fortuna desires to honor the valor, service and dedication of our police officers; and
NOW THEREFORE, I Mike Johnson, Mayor of Fortuna, proclaim the week of May 11th to May 17th, 2025 to be National Police Week, and call upon all citizens to give special honor and sincere appreciation to the police officers of this city by deed, remark, and attitude. I further call upon our citizenry to make every effort to express our gratitude to the men and women who make it possible for us to leave our homes and families in safety each day and return knowing they are protected by people willing to sacrifice their lives, if necessary, to guard our loved ones, property, and government against all who would violate the law.

SIGNED this 5th day of May 2025, at the City of Fortuna, in the State of California, and in witness thereof, the seal of Fortuna.
___________________________
Mike Johnson,
Mayor, City of Fortuna
621 11th Street, Fortuna CA
Special Meeting Agenda
Zoom Option: 1-669-900-9128 Meeting ID: 890 8869 2120 Password:
154540
We May Disagree, But We Will Be Respectful of One Another All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council Personal Attacks are Unacceptable
The City Council May Take Action on any Item on this Agenda.

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

Mayor Johnson called the public meeting to order at 3:00 p.m. and led the flag salute. ROLL CALL: Council Member Conley - Present, Council Member Diaz - Present, Mayor Pro Tem Trent - Present, Mayor Johnson - Present

2. ORAL COMMENTS FROM THE PUBLIC
Minutes:

PUBLIC COMMENT: There being no comments from the public, Mayor Johnson closed the public comment section.

3. CITY COUNCIL BUSINESS
a. Interviews and Appointment of Successor to Vacant City Council Seat Minutes:

STAFF REPORT: City Manager, Amy Nilsen, provided staff report on the interview and appointment of the vacant City Council seat process. The applicants were interviewed in the following order: Tina Christensen, Abe Stevens, Henry Wotherspoon, and Arlene Spiers.

PUBLIC COMMENT: Doug Strehl, Sue Long and Jonathan (via Zoom). There being no Meeting Agenda
Minutes
Monday, April 21, 2025 at 3:00 pm
additional comments from the public, Mayor Johnson closed the public comment section.

CITY COUNCIL ACTION: Mayor Pro Tem Trent moved, seconded by Council Member Conley to select and appointment Abe Stevens as successor to fill the City Council vacancy. Roll Call Vote. AYES: Council Member Conley, Diaz, Mayor Pro Tem Trent, Mayor Johnson. NOES: None ABSTAIN: None ABSENT: None MOTION CARRIED 4/0

4. ADJOURN
Minutes:

CITY COUNCIL ACTION: Council Member Conley moved, seconded by Mayor Pro Tem Trent to adjourn the meeting at 4:12 p.m. MOTION CARRIED 4/0.

Contact: Siana L. Emmons, City Clerk ([email protected] 707-725-1409) 621 11th Street, Fortuna CA
Regular Meeting Agenda
Zoom Option: 1-669-900-9128 Meeting ID: 810 4348 7522 Password:
019619
We May Disagree, But We Will Be Respectful of One Another All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council Personal Attacks are Unacceptable
The City Council May Take Action on any Item on this Agenda.

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

Mayor Johnson called the public meeting to order at 6:00 p.m. and led the flag salute. ROLL CALL: Council Member Conley - Present, Council Member Diaz - Present, Mayor Pro Tem Trent - Present, Mayor Johnson - Present

2. ORAL COMMENTS FROM THE PUBLIC
Minutes:

PUBLIC COMMENT: There being no comments from the public, Mayor Johnson closed the public comment section.

3. CONSENT CALENDAR
Minutes:

PUBLIC COMMENT: There being no comments from the public, Mayor Johnson closed the public comment section. CITY COUNCIL ACTION: Council Member Conley moved, seconded by Council Member Diaz to approve Consent Calendar items a - m. AYES: Council Member Conley, Diaz, Stevens, Mayor Pro Tem Trent, Mayor Johnson NOES: None ABSTAIN: None ABSENT:

None MOTION CARRIED 5/0
Meeting Agenda
Minutes
Monday, April 21, 2025 at 6:00 pm
a. City Council Minutes – April 7, 2025 (Special Meeting) b. City Council Minutes – April 7, 2025 (Regular Meeting) c. Administrative Department Monthly Report
d. Community Development Department Monthly Report
e. Finance Department Monthly Report
f. Parks & Recreation Monthly Report
g. Police Department Monthly Report
h. Public Works Monthly Report
i. Report of Disbursements
j. Approval of the Amended Full Time Classification and Pay Rate Schedule k. Authorize the City Manager to Submit Land and Water Conservation Fund Grants to the California Department of Parks and Recreation for Vancil Community Forest Project Resolution 2025-08, Newburg Park Project Resolution 2025-09, and Riverwalk Park Project Resolution 2025-10
l. Approval of Memorial Bench Dedication in Rohner Park m. Continue Public Hearing re: FBID Annual Assessment; Amend Resolution 2025-07

4. CITY COUNCIL BUSINESS
a. Budget Outlook and Potential Revenue Generation Options Minutes:

STAFF REPORT: City Manager Amy Nilsen provided staff report on the City's budget outlook and potential revenue generation options. PUBLIC COMMENT: Justin Primofiore, Matt Eberhardt, and Oroville Garrison. There being no additional comments from the public, Mayor Johnson closed the public comment section. CITY COUNCIL ACTION: Council Member Diaz moved, seconded by Council Member Conley to direct staff to return with recommended revenue generation options(s) and necessary implementation plan(s); and appointing Mayor Johnson and Mayor Pro Tem Trent to a Revenue Generation Ad Hoc Committee. Voice Vote. AYES: Council Member Conley, Diaz, Stevens, Mayor Pro Tem Trent, Mayor Johnson NOES: None ABSTAIN: None ABSENT: None MOTION CARRIED 5/0

5. CITY MANAGER’S REPORT
Minutes:

STAFF REPORT: City Manager Amy Nilsen provided verbal report.

6. FUTURE AGENDA ITEMS

7. CITY COUNCIL REPORTS AND COMMENTS
a. Council Member Kyle Conley
b. Council Member Carlos Diaz
c. Mayor Pro Tem Tami Trent
d. Mayor Mike Johnson

8. ADJOURN
Minutes:

CITY COUNCIL ACTION: Council Member Conley moved, seconded by Mayor Pro Tem Trent to adjourn the meeting at 6:47 p.m. MOTION CARRIED 5/0.

Contact: Siana L. Emmons, City Clerk ([email protected] 707-725-1409) Consent Item 4c

STAFF REPORT
Consent Agenda Item
DATE: May 5, 2025
TO: Honorable Mayor and City Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Report of Disbursements for April 24 and May 1, 2025 STAFF RECOMMENDATION:

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

REPORT OF DISBURSEMENTS:

Disbursement was processed as follows:

April 24, 2025 $ 185,616.00
May 1, 2025 $ 55,484.38
RECOMMENDED COUNCIL ACTION:

Informational Item. Receive report by Consent Agenda vote.

ATTACHMENTS:
• Disbursements Detail Report for April 24, 2025
• Disbursements Detail Report for May 1, 2025
Amount
4/24/2025 7:04:55 AM Page 1 of 4
82046 04/24/2025 MISSION LINEN INDUS SERV 523662358 River Lodge Linen Service 48.27 82046 04/24/2025 MISSION LINEN INDUS SERV 523663342 Simple Green - Multiple Departments 22.13 82046 04/24/2025 MISSION LINEN INDUS SERV 523661946 Urinal Screens - PD 54.75 82046 04/24/2025 MISSION LINEN INDUS SERV 523662358 River Lodge Linen Service 302.67 82046 04/24/2025 MISSION LINEN INDUS SERV 523638059 Corp Yard Linen Service 53.37 82046 04/24/2025 MISSION LINEN INDUS SERV 523638060 Wastewater Linen Service 158.3 82045 04/24/2025 MERCER FRASER COMPANY 2130-08 Paving Services 115816 82046 04/24/2025 MISSION LINEN INDUS SERV 523638059 Corp Yard Linen Service 70.99 82044 04/24/2025 MAD RIVER COMMUNITY HOSPITAL 10694362 Pre-employment Physical - Radcliffe 316.54 82044 04/24/2025 MAD RIVER COMMUNITY HOSPITAL A0188401 Pre-employment Physical - Vitello 43.75 82042 04/24/2025 LACO ASSOCIATES 53891 Project Services - Parks 5195 82043 04/24/2025 LOZANO SMITH LLP 2245160 Legal Services 1300 82040 04/24/2025 HUMMEL TIRE & WHEEL 282102 Flat Repair Service Call - WWTP 130.88 82041 04/24/2025 INTERNAT'L INSTITUTE OF MUNCIPAL CLERKS 040325 Annual Membership Fee - S Emmons 195 82038 04/24/2025 HILFIKER PIPE COMPANY 103159 Galvanized Grate/Frame - Streets 1642.62 82039 04/24/2025 HUMBOLDT FENCE CO 13381B Gate Repair - PD 200 82037 04/24/2025 H&S ENERGY GROUP HCL-018516-25 Car Wash Services - PD 7 82037 04/24/2025 H&S ENERGY GROUP HCL-019384-25 Car Wash Services - PD 49 82035 04/24/2025 FREEDOM FUEL 1010470 Equipment Fuel 36.71 82036 04/24/2025 GIBNEY, DEVIN 040125 Per Diem 4.29 - 5.1 (OSHA Boom Ins/Hydraulic Train 167 82035 04/24/2025 FREEDOM FUEL 1010337 Equipment Fuel 40 82035 04/24/2025 FREEDOM FUEL 1010424 Equipment Fuel 38.4 82034 04/24/2025 FORTUNA ACE HARDWARE 390822 I-Beam Level - Utilities 61.3 82034 04/24/2025 FORTUNA ACE HARDWARE 390830 Fertilizer - Utilities 32.84 82034 04/24/2025 FORTUNA ACE HARDWARE 390769 Submersible Multi-use Pump - WWTP 120.44 82034 04/24/2025 FORTUNA ACE HARDWARE 390791 Batteries - Lab 13.13 82034 04/24/2025 FORTUNA ACE HARDWARE 390698 Shovel - General Services 109.45 82034 04/24/2025 FORTUNA ACE HARDWARE 390703 Green Gobbler Vinegar/Pipe Straps - WWTP 73.29 82034 04/24/2025 FORTUNA ACE HARDWARE 390641 Pear Head Ratchet/Wire Brush - Utilities 43.78 82034 04/24/2025 FORTUNA ACE HARDWARE 390674 Clamps/Fittings - WWTP 62.77 82033 04/24/2025 FLO-LINE TECHNOLOGY INC 250122-1 Pump Meeter and Supplies - WWTP 2089.25 82034 04/24/2025 FORTUNA ACE HARDWARE 390598 Building Maintenance Supplies - PD 51.42 82032 04/24/2025 FERGUSON WATERWORKS #3011 1311396 Meter Reading Device - Utilities 727.64 82033 04/24/2025 FLO-LINE TECHNOLOGY INC 250122 Pump - WWTP 4987.31 82030 04/24/2025 DIVISION OF THE STATE ARCHITECT 033125 1st Quarter Ending 3.31.25 SB1186 -176.4 82031 04/24/2025 DUNNIGAN PSYCHOLOGICAL & THREAT ASSESS 2281 Pre-employment Psych Evaluation 650 82029 04/24/2025 DETAIL DOCTOR, THE REY02 Vehicle Detailing Service - Chief/Lieutenant 250 82030 04/24/2025 DIVISION OF THE STATE ARCHITECT 033125 1st Quarter Ending 3.31.25 SB1186 196 82027 04/24/2025 DCI BUILDERS 71535 Monday Club Chimney Retention Release 4516.25 82028 04/24/2025 DEPARTMENT OF JUSTICE 807716 March Livescan Services 852 82025 04/24/2025 COUNTY OF HUMBOLDT 123124 Nov & Dec Parking Fees 157.5 82026 04/24/2025 CSG CONSULTANTS 60954 Consulting/Technical Assistance Services 2500 82025 04/24/2025 COUNTY OF HUMBOLDT 033125 March Parking Fees 67.5 82025 04/24/2025 COUNTY OF HUMBOLDT 123124 Nov & Dec Parking Fees 23.5 82025 04/24/2025 COUNTY OF HUMBOLDT 022825 February Parking Fees 37.5 82025 04/24/2025 COUNTY OF HUMBOLDT 033125 March Parking Fees 31.5 82025 04/24/2025 COUNTY OF HUMBOLDT 013125 January Parking Fees 37.5 82025 04/24/2025 COUNTY OF HUMBOLDT 022825 February Parking Fees 17.5 82024 04/24/2025 COLEMAN, EMMA 031225 Park Deposit Refund 500 82025 04/24/2025 COUNTY OF HUMBOLDT 013125 January Parking Fees 17.5 82023 04/24/2025 CAJPA 200009355 LITL Program - Chambers/Town/Emmons 10 82023 04/24/2025 CAJPA 200009355 LITL Program - Chambers/Town/Emmons 20 82022 04/24/2025 ACCURATE DRUG TESTING SERVICES 13215 DOT Physical Exams - J Johnson/A White 220 82022 04/24/2025 ACCURATE DRUG TESTING SERVICES 13231 DOT Physical Exam - M McGinnis 110 Expense Approval Report
CITY OF FORTUNA By (None)
Payment Dates 4/24/2025 - 4/24/2025
Payment Number Payment Date Vendor Name Payable Number Description (Item) Amount
4/24/2025 7:04:55 AM Page 2 of 4
82062 04/24/2025 WENDT CONSTRUCTION 115848 Lift Station Water Leak Repair - WWTP 4583 Grand Total: 185616
82061 04/24/2025 UNIVERSAL RECOVERY CORP 033125 March Collection Services 89.23 82061 04/24/2025 UNIVERSAL RECOVERY CORP 033125 March Collection Services 89.23 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 115.93 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 115.93 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 86.95 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 38.64 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 38.64 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 38.64 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 270.51 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 86.95 82059 04/24/2025 TRACTOR SUPPLY CREDIT PLA 2111468931 Kennel Dog Beds 123.95 82060 04/24/2025 UBEO BUSINESS SERVICES 4864035 Print Services Contract FY 24/25 (Revised) 173.9 82058 04/24/2025 THATCHER COMPANY INC 2025100104035 Sulfur Dioxide - WWTP 7500 82058 04/24/2025 THATCHER COMPANY INC 2025100104035 Sulfur Dioxide - WWTP 12207.54 82056 04/24/2025 STAPLES BUSINESS CREDIT 7910630784 Supplies - PD 113.68 82057 04/24/2025 THATCHER COMPANY INC 2025400101207 Ammonia - WWTP 5155.94 82056 04/24/2025 STAPLES BUSINESS CREDIT 7910622115 Cell Phone Accessories - Building 64.87 82056 04/24/2025 STAPLES BUSINESS CREDIT 7910625533 Supplies - PD 57.66 82054 04/24/2025 SSGFLW LLC 41556 AP Check Stock 140.95 82055 04/24/2025 ST JOSEPH HEALTH NO CA 271300602026 SART Exam Services 1273 82052 04/24/2025 O'REILLY AUTOMOTIVE STORE 303749 Starter - Parks 22.03 82053 04/24/2025 PACIFIC GAS & ELECTRIC CO 04256726 44469516726 2284.6 82052 04/24/2025 O'REILLY AUTOMOTIVE STORE 303728 Vehicle Repair Supplies - Utilities/WWTP 16.41 82052 04/24/2025 O'REILLY AUTOMOTIVE STORE 303728 Vehicle Repair Supplies - Utilities/WWTP 16.41 82052 04/24/2025 O'REILLY AUTOMOTIVE STORE 303495 Tailgate Handle - WWTP 36.7 82052 04/24/2025 O'REILLY AUTOMOTIVE STORE 303690 Fuel Cleaner/Treatment - PD 196.98 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 629.07 82052 04/24/2025 O'REILLY AUTOMOTIVE STORE 302490 Brake Pads - Transit 49.28 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 338.73 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 338.73 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 387.12 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 48.39 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 1596.87 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 387.12 82050 04/24/2025 NOR CAL GLOVES 1576685 Latex Gloves - WWTP 144.3 82051 04/24/2025 NYLEX.NET 16185 Network Support Services FY 24/25 1112.97 82048 04/24/2025 NCL OF WISCONSIN INC 518457 Lab Supplies 144.86 82049 04/24/2025 NILSEN, AMY 040925 Expense Reimbursement - Lunch Meeting 64.59 82047 04/24/2025 NAPA AUTO PARTS FORTUNA 80542 Lamp - City Hall 72.24 82048 04/24/2025 NCL OF WISCONSIN INC 518457 Lab Supplies -6.35 82046 04/24/2025 MISSION LINEN INDUS SERV 523667764 Trash Can Liners/TP - Multiple Departments 22.84 82046 04/24/2025 MISSION LINEN INDUS SERV 523667764 Trash Can Liners/TP - Multiple Departments 22.84 82046 04/24/2025 MISSION LINEN INDUS SERV 523667764 Trash Can Liners/TP - Multiple Departments 91.37 82046 04/24/2025 MISSION LINEN INDUS SERV 523667764 Trash Can Liners/TP - Multiple Departments 224.78 82046 04/24/2025 MISSION LINEN INDUS SERV 523667764 Trash Can Liners/TP - Multiple Departments 224.78 82046 04/24/2025 MISSION LINEN INDUS SERV 523667764 Trash Can Liners/TP - Multiple Departments 45.68 82046 04/24/2025 MISSION LINEN INDUS SERV 523667758 Paper Towels/Gloves - River Lodge 236.67 82046 04/24/2025 MISSION LINEN INDUS SERV 523667764 Trash Can Liners/TP - Multiple Departments 91.37 82046 04/24/2025 MISSION LINEN INDUS SERV 523663342 Simple Green - Multiple Departments 11.06 82046 04/24/2025 MISSION LINEN INDUS SERV 523663342 Simple Green - Multiple Departments 11.06 82046 04/24/2025 MISSION LINEN INDUS SERV 523663342 Simple Green - Multiple Departments 22.13 82046 04/24/2025 MISSION LINEN INDUS SERV 523663342 Simple Green - Multiple Departments 22.12 82046 04/24/2025 MISSION LINEN INDUS SERV 523663342 Simple Green - Multiple Departments 22.13 82046 04/24/2025 MISSION LINEN INDUS SERV 523663342 Simple Green - Multiple Departments 22.13 Expense Approval Report Payment Dates: 4/24/2025 - 4/24/2025 Payment Number Payment Date Vendor Name Payable Number Description (Item) 125-2470 SB 1186 State Architect 196
125-4081 SB 1186 Disability Access -176.4
4/24/2025 7:04:55 AM Page 3 of 4
101-6035-5400 Personnel Services 43.75
120-5500-3000 Department Supplies 64.87
120-5705-3000 Equipment Maintenance 86.95
100-7405-2000 Special Expense 1273
100-7612-1100 Contingency 64.59
101-6025-5450 Professional Services 5195
100-7000-1600 Travel, Conferences & Training 20
100-7000-4100 Travel, Conferences & Training 167
100-7015-1150 Dues & Subscriptions 195
100-6035-2000 Personnel Services 650
100-6625-2000 Livescan Fees 852
100-7000-1200 Travel, Conferences & Training 10
100-5775-5400 Network Support 387.12
100-5775-5600 Network Support 48.39
100-6020-1600 Legal Services 1300
100-5775-1500 Network Support 1112.97
100-5775-2000 Network Support 1596.87
100-5775-4000 Network Support 387.12
100-5715-2000 Vehicle Repairs 502.98
100-5715-5450 Vehicle Repairs 22.03
100-5740-2000 Building Repair and Maintenance 251.42
100-5705-4000 Equipment Maintenance 38.64
100-5705-5450 Equipment Maintenance 38.64
100-5715-1500 Vehicle Repairs 72.24
100-5705-1500 Equipment Maintenance 173.9
100-5705-2000 Equipment Maintenance 270.51
100-5705-3200 Equipment Maintenance 86.95
100-5500-5500 Department Supplies 67.81
100-5505-5450 Vehicle Fuel & Oil 115.11
100-5565-5450 Janitorial Supplies 113.5
100-5500-2000 Department Supplies 450.87
100-5500-2800 Department Supplies 123.95
100-5500-4100 Department Supplies 180.44
100-2410 Parking Fund-State 300
100-2460 Sales Tax Payable -6.35
100-5500-1500 Department Supplies 113.5
100-2030 Retention Payable 4516.25
100-2220 Refundable Park Deposits 500
100-2405 Parking Fund-County 90
Grand Total: 185616
Account Summary
Account Number Account Name Payment Amount
100-1680 Distributed Office Supplies 140.95
290 - RMRA - SB1 Fund 115816
306 - Recycle-Parks 2500
500 - Water Fund 8773.5
550 - Wastewater Fund 33646.48
590 - TDA Transit Fund 365.82
101 - Transaction and Use Tax Fund 5238.75
120 - Development & Building Fund 151.82
125 - ADA Compliance Fund 19.6
160 - Riverlodge Fund 1234.01
200 - Storm Drainage Fund 1642.62
Expense Approval Report Payment Dates: 4/24/2025 - 4/24/2025 Report Summary
Fund Summary
Fund Payment Amount
100 - General Fund 16227.4
4/24/2025 7:04:55 AM Page 4 of 4
Grand Total: 185616
Project Account Summary
Project Account Key Payment Amount
**None** 185616
Grand Total: 185616
550-7800-6700 Bad Debts 89.23
590-5715-5000 Vehicle Repairs 49.28
590-6035-5000 Personnel Services 316.54
550-5715-6600 Vehicle Repairs 36.7
550-5720-6600 Equipment Repair 7207.44
550-5775-6700 Network Support 629.07
550-5557-6600 Lab Supplies 157.99
550-5705-6700 Equipment Maintenance 115.93
550-5715-6500 Vehicle Repairs 16.41
550-5500-6600 Department Supplies 496.33
550-5500-6700 Department Supplies 33.9
550-5555-6600 Plant Chemicals 17363.48
500-6505-6000 Utility - General & Electric 2284.6
500-7800-6300 Bad Debts 89.23
550-1310 Chemical Tank Deposits 7500
500-5775-6300 Network Support 338.73
500-6015-6100 General Contracting 4583
500-6025-6100 Professional Services 330
500-5500-6300 Department Supplies 33.9
500-5705-6300 Equipment Maintenance 115.93
500-5715-6100 Vehicle Repairs 16.41
306-6020-5400 Legal Services 2500
500-5500-6000 Department Supplies 62.77
500-5500-6100 Department Supplies 918.93
160-5775-5800 Network Support 338.73
200-5500-4300 Department Supplies 1642.62
290-6015-9997 General Contracting 115816
160-5547-5800 User Group Linen 302.67
160-5565-5800 Janitorial Supplies 307.06
160-5705-5800 Equipment Maintenance 38.64
Expense Approval Report Payment Dates: 4/24/2025 - 4/24/2025 Account Summary
Account Number Account Name Payment Amount
160-5500-5700 Department Supplies 246.91
Amount
5/1/2025 10:41:29 AM Page 1 of 4
82084 05/01/2025 MITCHELL 1 IB32669662 Teamwork Software FY 24/25 68.63 82084 05/01/2025 MITCHELL 1 IB32669662 Teamwork Software FY 24/25 68.63 82083 05/01/2025 MISSION LINEN INDUS SERV 523722568 Parks/Rink Linen Service 94.5 82084 05/01/2025 MITCHELL 1 IB32669662 Teamwork Software FY 24/25 68.62 82083 05/01/2025 MISSION LINEN INDUS SERV 523679658 Police Mat Service 58.04 82083 05/01/2025 MISSION LINEN INDUS SERV 523679659 Parks/Rink Linen Service 99.9 82083 05/01/2025 MISSION LINEN INDUS SERV 523679647 Corp Yard Linen Service 92.73 82083 05/01/2025 MISSION LINEN INDUS SERV 523679648 Wastewater Linen Service 98.18 82083 05/01/2025 MISSION LINEN INDUS SERV 523437711 Paper Towels - Corp Yard 32.4 82083 05/01/2025 MISSION LINEN INDUS SERV 523679647 Corp Yard Linen Service 110.35 82082 05/01/2025 KEENAN SUPPLY CO S014224601.002 Meter Balls/Couplings - Utilities 1898.61 82083 05/01/2025 MISSION LINEN INDUS SERV 523437711 Paper Towels - Corp Yard 32.4 82080 05/01/2025 HORIZON BUSINESS PRODUCTS 286653 Lab Shipping Service 105.39 82081 05/01/2025 HUMMEL TIRE & WHEEL 282257 Mower Tire Tube - General Services 24.04 82079 05/01/2025 HELIX LABORATORIES INC 91510 Alka Mag Supply FY 24/25 7758.46 82080 05/01/2025 HORIZON BUSINESS PRODUCTS 286606 Lab Shipping Service 143.93 82077 05/01/2025 FUHS CLASS OF 2025 040225 River Lodge Deposit Refund 250 82078 05/01/2025 HDL, COREN & CONE SIN049733 Property Tax Service FY 24/25 1915.01 82076 05/01/2025 FREEDOM FUEL 1010623 Equipment Fuel 34.38 82076 05/01/2025 FREEDOM FUEL 1010655 Equipment Fuel 50.79 82076 05/01/2025 FREEDOM FUEL 1010580 Equipment Fuel 36.61 82076 05/01/2025 FREEDOM FUEL 1010610 Equipment Fuel 44.15 82075 05/01/2025 FORTUNA ROTARY CLUB 040925 River Lodge Deposit Refund 200 82076 05/01/2025 FREEDOM FUEL 1010530 Equipment Fuel 35.65 82074 05/01/2025 FORTUNA ACE HARDWARE 391196 Pruner/Hoe/Goof Off/Adhesive - Parks 30.64 82074 05/01/2025 FORTUNA ACE HARDWARE 391196 Pruner/Hoe/Goof Off/Adhesive - Parks 60.2 82074 05/01/2025 FORTUNA ACE HARDWARE 391172 Janitorial Supplies - Multiple Depts 9.41 82074 05/01/2025 FORTUNA ACE HARDWARE 391172 Janitorial Supplies - Multiple Depts 9.41 82074 05/01/2025 FORTUNA ACE HARDWARE 391172 Janitorial Supplies - Multiple Depts 3.27 82074 05/01/2025 FORTUNA ACE HARDWARE 391172 Janitorial Supplies - Multiple Depts 15.95 82074 05/01/2025 FORTUNA ACE HARDWARE 391172 Janitorial Supplies - Multiple Depts 36.3 82074 05/01/2025 FORTUNA ACE HARDWARE 391172 Janitorial Supplies - Multiple Depts 23.17 82074 05/01/2025 FORTUNA ACE HARDWARE 390972 Joint Compound/Drywall - CDD Remodel 22.54 82074 05/01/2025 FORTUNA ACE HARDWARE 391118 Supplies - General Services 135.67 82072 05/01/2025 ENVIRONMENTAL RESOURCE ASSOC 109706 Lab Supplies 376.68 82073 05/01/2025 FARWEST STEEL 2199076 Pipe Rack Supplies - Utilities 443.55 82071 05/01/2025 ECOLAB 6352177393 River Lodge Dishwasher Rental FY 24/25 144.41 82072 05/01/2025 ENVIRONMENTAL RESOURCE ASSOC 109701 Lab Supplies 1305.88 82070 05/01/2025 DEPARTMENT OF JUSTICE 808467 Livescan Services - Parks 32 82070 05/01/2025 DEPARTMENT OF JUSTICE 812883 March BAC Analysis Service 105 82069 05/01/2025 CRITICAL REACH INC 3869 APBnet Annual Support Fee - PD 350 82070 05/01/2025 DEPARTMENT OF JUSTICE 794393 Livescan Services - Parks 64 82067 05/01/2025 BUCKEYE, THE 022725 River Lodge Deposit Refund 250 82068 05/01/2025 BYWATER, MIA 012725 Park Deposit Refund 250 82066 05/01/2025 BODYWORKS 050125 May Gym Memberships 20 82066 05/01/2025 BODYWORKS 050125 May Gym Memberships 20 82066 05/01/2025 BODYWORKS 050125 May Gym Memberships 40 82066 05/01/2025 BODYWORKS 050125 May Gym Memberships 20 82066 05/01/2025 BODYWORKS 050125 May Gym Memberships 20 82066 05/01/2025 BODYWORKS 050125 May Gym Memberships 80 82064 05/01/2025 AT&T 9011 23365304 9391084093 31.65
82065 05/01/2025 BARNEY, THERESA 040925 River Lodge Deposit Refund 250 82063 05/01/2025 ALLEN TRENCH SAFETY CORP 7791 Hydraulic Vertical Shoring - Utilities -306.41 82063 05/01/2025 ALLEN TRENCH SAFETY CORP 7791 Hydraulic Vertical Shoring - Utilities 3531.7 Expense Approval Report
CITY OF FORTUNA By (None)
Payment Dates 5/1/2025 - 5/1/2025
Payment Number Payment Date Vendor Name Payable Number Description (Item) Amount
5/1/2025 10:41:29 AM Page 2 of 4
82100 05/01/2025 WOODS PEST CONTROL 1311741 City Hall Pest Services FY 24/25 90 Grand Total: 55484.38
82098 05/01/2025 SWEET, JAMES 040825 Spring Break Rec Program Refund x2 280 82099 05/01/2025 THE PEOPLE OF NEW DIRECTIONS 3944 Encampment Clean-up Services 550 82096 05/01/2025 SPORT & CYCLE 230756 Grundens Rain Jacket - WWTP 230.99 82097 05/01/2025 STITCH 041825 River Lodge Deposit Refund 250 82094 05/01/2025 RON DUPRATT FORD CM48390 Credit Return - PD -143.28 82095 05/01/2025 SACRAMENTO STATE 042825 River Lodge Deposit Refund - CARB One Stop 250 82093 05/01/2025 RECOLOGY EEL RIVER 720905 Debris Disposal 48 82094 05/01/2025 RON DUPRATT FORD 64120 Shaft/SealRetainer - PD 163.56 82093 05/01/2025 RECOLOGY EEL RIVER 720881 Debris Disposal 105.6 82093 05/01/2025 RECOLOGY EEL RIVER 720903 Debris Disposal 76.8 82092 05/01/2025 QUENCH USA INC INV08904979 Public Works Water System FY 24/25 42.7 82092 05/01/2025 QUENCH USA INC INV08915767 Parks Water System FY 24/25 42.71 82092 05/01/2025 QUENCH USA INC INV08904979 Public Works Water System FY 24/25 21.36 82092 05/01/2025 QUENCH USA INC INV08904979 Public Works Water System FY 24/25 21.36 82091 05/01/2025 POSTMASTER 050125 Utility Billing Postage 4.30.25 1132.69 82091 05/01/2025 POSTMASTER 050125 Utility Billing Postage 4.30.25 1132.69 82090 05/01/2025 PIERSON BUILDING CENTER 041725 River Lodge Deposit Refund Less Cancel Fee 1000 82090 05/01/2025 PIERSON BUILDING CENTER 041725 River Lodge Deposit Refund Less Cancel Fee -125 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250847 06162570847 9.94 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04253473 69711643473 728.94 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 2334.93 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 213.9 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 4412.62 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 14831.55 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 335.03 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 133.01 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 204.1 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 1799.68 82088 05/01/2025 PACIFIC ECORISK 20553 NPDES Toxicity Testing 918.92 82089 05/01/2025 PACIFIC GAS & ELECTRIC CO 04250845 46580260845 2033.24 82087 05/01/2025 O'REILLY AUTOMOTIVE STORE 305004 Car Wash Solution - Utilities 7.65 82087 05/01/2025 O'REILLY AUTOMOTIVE STORE 305043 V/C Breather -- General Services 16.41 82087 05/01/2025 O'REILLY AUTOMOTIVE STORE 304203 Starter - General Services 369.1 82087 05/01/2025 O'REILLY AUTOMOTIVE STORE 304365 Hydraulic Fluid - Parks 27.36 82086 05/01/2025 NORMAN'S DRY CLEANERS 25114-977-A River Lodge Linen Service 28 82087 05/01/2025 O'REILLY AUTOMOTIVE STORE 303884 Disc Pad Set - Transit 97.49 82086 05/01/2025 NORMAN'S DRY CLEANERS 25107-554-A River Lodge Linen Service 144 82086 05/01/2025 NORMAN'S DRY CLEANERS 25107-554-A River Lodge Linen Service 49 82086 05/01/2025 NORMAN'S DRY CLEANERS 25100-128-A River Lodge Linen Service 57 82086 05/01/2025 NORMAN'S DRY CLEANERS 25100-128-A River Lodge Linen Service 20.6 82085 05/01/2025 NAPA AUTO PARTS FORTUNA 80847 Supplies - WWTP 589.33 82085 05/01/2025 NAPA AUTO PARTS FORTUNA 80914 Air Filter - General Services 58.58 82085 05/01/2025 NAPA AUTO PARTS FORTUNA 80822 Filters - Shop 29.51 82085 05/01/2025 NAPA AUTO PARTS FORTUNA 80822 Filters - Shop 29.51 82085 05/01/2025 NAPA AUTO PARTS FORTUNA 80822 Filters - Shop 29.51 82085 05/01/2025 NAPA AUTO PARTS FORTUNA 80822 Filters - Shop 29.51 82084 05/01/2025 MITCHELL 1 IB32669662 Teamwork Software FY 24/25 68.63 82085 05/01/2025 NAPA AUTO PARTS FORTUNA 80798 Filter - Utilities 10.73 Expense Approval Report Payment Dates: 5/1/2025 - 5/1/2025 Payment Number Payment Date Vendor Name Payable Number Description (Item) 5/1/2025 10:41:29 AM Page 3 of 4
160-5706-5800 Equipment Lease 144.41
210-5500-5300 Department Supplies 182.4
280-5265-4200 Miscellaneous Benefits 20
160-5500-5700 Department Supplies 9.41
160-5547-5800 User Group Linen 201
160-5565-5800 Janitorial Supplies 107.01
101-6025-2000 Professional Services 550
160-2222 River Lodge Deposits 2450
160-4330 River Lodge Rental Fees -125
100-6600-2000 State Fees 105
100-7015-2000 Dues & Subscriptions 68.62
100-7015-4100 Dues & Subscriptions 68.63
100-6505-5450 Utility - General & Electric 1799.68
100-6505-5500 Utility - General & Electric 335.03
100-6505-5600 Utility - General & Electric 133.01
100-6200-2000 Telephone 31.65
100-6505-2000 Utility - General & Electric 738.88
100-6505-5400 Utility - General & Electric 204.1
100-6025-2000 Professional Services 408.04
100-6035-5400 Personnel Services 32
100-6035-5450 Personnel Services 64
100-5740-1500 Building Repair and Maintenance 90
100-5900-5450 Tools & Small Equipment 60.2
100-6025-1400 Professional Services 1915.01
100-5715-2000 Vehicle Repairs 20.28
100-5715-4100 Vehicle Repairs 497.64
100-5715-5450 Vehicle Repairs 29.51
100-5500-9377 Department Supplies 22.54
100-5505-5450 Vehicle Fuel & Oil 201.58
100-5565-5450 Janitorial Supplies 225.04
100-5500-4100 Department Supplies 278.42
100-5500-5450 Department Supplies 118.07
100-5500-5500 Department Supplies 15.95
100-5500-2000 Department Supplies 23.17
100-5500-3200 Department Supplies 3.27
100-5500-4000 Department Supplies 21.36
100-5265-2000 Miscellaneous Benefits 80
100-5265-5400 Miscellaneous Benefits 40
100-5500-1500 Department Supplies 36.3
100-2460 Sales Tax Payable -306.41
100-4311 Break Camps Revenue 280
100-5265-1200 Miscellaneous Benefits 20
Account NumberAccount Name Payment Amount
100-1683 Distributed Utilities 2033.24
100-2220 Refundable Park Deposits 250
550 - Wastewater Fund 18101.61
590 - TDA Transit Fund 97.49
672 - Forest Hill Water Booster Fund 213.9
Grand Total: 55484.38
Account Summary
101 - Transaction and Use Tax Fund 550
160 - Riverlodge Fund 2786.83
210 - Solid Waste Fund 182.4
280 - Gas Tax Fund 4432.62
500 - Water Fund 19175.72
Expense Approval Report Payment Dates: 5/1/2025 - 5/1/2025 Report Summary
Fund Summary
Fund Payment Amount
100 - General Fund 9943.81
5/1/2025 10:41:29 AM Page 4 of 4
Grand Total: 55484.38
Project Account Summary
Project Account Key Payment Amount
**None** 55484.38
Grand Total: 55484.38
550-7015-6600 Dues & Subscriptions 68.63
590-5715-5000 Vehicle Repairs 97.49
672-6505-6515 Utility - General & Electric 213.9
550-5900-6500 Tools & Small Equipment 3531.7
550-6045-6600 Laboratory Services 1168.24
550-6505-6600 Utility - General & Electric 2334.93
550-5555-6600 Plant Chemicals 7758.46
550-5557-6600 Lab Supplies 1305.88
550-5715-6500 Vehicle Repairs 29.51
550-5265-6500 Miscellaneous Benefits 20
550-5500-6600 Department Supplies 708.87
550-5500-6700 Department Supplies 1175.39
500-5715-6100 Vehicle Repairs 491.44
500-6505-6000 Utility - General & Electric 14831.55
500-7015-6000 Dues & Subscriptions 68.63
500-5500-6100 Department Supplies 2023.74
500-5500-6200 Department Supplies 1132.69
500-5557-6000 Lab Supplies 376.68
280-6505-4200 Utility - General & Electric 4412.62
500-5265-6100 Miscellaneous Benefits 20
500-5500-6000 Department Supplies 230.99
Expense Approval Report Payment Dates: 5/1/2025 - 5/1/2025 Account Summary
Account NumberAccount Name Payment Amount
Consent Item 4d

STAFF REPORT
City Council Consent Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Approve the Grant Funds from the State Coastal Conservancy for the Acquisition of 237 Acres of Lower Eel River Wetlands and Authorize the City Manager to Negotiate and Execute all Grant Agreement Documents Resolution 2025-11
STAFF RECOMMENDATION:

Approve Resolution 2025-11 Approving the Grant Funds from the State Coastal Conservancy (SCC) for the Acquisition of 237 Acres Along the Lower Eel River and authorize the City Manager to negotiate and execute all documents related to the grant agreement.

EXECUTIVE SUMMARY:

On April 17, 2025 the State Coastal Conservancy (SCC) authorized disbursement of up to $1,272,250, of which $972,250 is from the United Staes Fish and Wildlife Service’s National Coastal Wetlands Conservation Grant Program, to the City of Fortuna to complete pre-acquisition tasks and acquire 237 acquires of Lower Eel River Wetlands in Fortuna; and to prepare plans and designs for a park on 7.2 acres of the property, and to prepare a management plan for the other portion of the property.

The City will retain 7.2 acres for open space, public access, and recreation, and the remaining 230 acres will be transferred to the Wiyot Tribe for the preservation of open space; protection, restoration, and enhancement of natural resources and habitat for fish and wildlife; protection of cultural resources; and to the extent compatible with habitat protection, providing public access and California Native American tribal cultural use and access.

The land acquisition process and the documentation required to complete the acquisition is lengthy and documented in Attachment 2, Acquisition Document Checklist for Grantees.

FISCAL IMPACT:

City staff and attorney will be required to complete the acquisition and other related tasks. The City will provide $10,000 of in-kind match to this project. In addition, staff may need to return to the City Council with a supplemental budget request to support the plans and design for the park and management plan of the property. The SCC has included approximately $300,000 in funding for some of these tasks. There are currently no dollars budgeted for the development of the 7.2 acre park.

Consent Item 4d

RECOMMENDED COUNCIL ACTION:

Motion to approve Resolution 2025-11. Consent Agenda Vote.

ATTACHMENTS:
• Resolution 2025-11, A Resolution of the City Of Fortuna Approving Grant Funds From the State Coastal Conservancy for the Acquisition of 237 Acres of Lower Eel River Wetlands • State Coastal Conservancy Acquisition Document Checklist for Grantees • State Coastal Conservancy Staff Recommendation April 17, 2025 RESOLUTION 2025-11

RESOLUTION OF THE CITY OF FORTUNA APPROVING GRANT OF FUNDS FROM THE STATE COASTAL CONSERVANCY FOR THE ACQUISITION OF 237 ACRES

OF LOWER EEL RIVER WETLANDS
WHEREAS, the Legislature of the State of California has established the State Coastal Conservancy (“Conservancy”) under Division 21 of the California Public Resources Code, and has authorized the Conservancy to award grants to public agencies and nonprofit organizations to implement the provisions of Division 21; and
WHEREAS, the Conservancy awards grants for projects that it determines are consistent with Division 21 of the Public Resources Code and with the Conservancy’s Strategic Plan and that best achieve the Conservancy’s statutory objectives, in light of limited funding.

WHEREAS, at its April 17, 2025 meeting, the Conservancy adopted a resolution authorizing a grant to City of Fortuna (“grantee”) for the acquisition of 237 acres of Lower Eel River Wetlands (“the project”). The resolution was adopted by the Conservancy pursuant to and is included in the Conservancy April 17, 2025 staff recommendation, a copy of which is on file with the grantee and with the Conservancy.

WHEREAS, the Conservancy requires that governing body of the grantee certify through a resolution that it approves the award of Conservancy grant funding and authorizes the execution by a representative of the grantee of a grant agreement on terms and conditions required by the Conservancy project no. 25-001-01, or Lower Eel River Wetlands Acquisition.

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

1. Approves the award of grant funding from the Conservancy for the project.

2. Acknowledges that it has or will have sufficient funds to complete the project and, if any property is acquired as part of the project to operate and maintain the property, and, if any facilities are constructed as a part of the project, to operate and maintain the facilities for a reasonable period, not less than the useful life of the facilities.

3. Agrees to be bound by all terms and conditions of the grant agreement and any other agreement or instrument as may be required by the Conservancy and as may be necessary to fulfill the terms of the grant agreement and to complete the project.

4. Authorizes any of the following named officers or employees to act as a representative of the grantee, to negotiate and execute on behalf of the grantee all agreements and instruments necessary to complete the project and to comply with the Conservancy's grant requirements, including, without limitation, the grant agreement: Amy Nilsen, City Manager .

PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 5th day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Mike Johnson, Mayor
ATTEST:
__________________________
Siana L. Emmons, City Clerk
Acquisition Document Checklist for Grantees
If your organization receives a grant from the State Coastal Conservancy for acquisition of property (either in fee or an easement), you will need to submit a number of documents for review and approval by the Conservancy before State funds can be submitted to escrow. The following checklist identifies the documents that Conservancy will typically need to review. Depending on the nature and complexity of your acquisition project, you may need to provide additional documents for Conservancy review. Your project manager will work with you to identify any necessary additional documents.

Documents SCC Will Need to Review Prior to
Acquisition
Notes/Status Sent to
SCC
SCC
Review
Complete
Appraisal - A fair-market-value appraisal that
meets the Conservancy’s Environmental Appraisal
Specifications is required for all acquisitions. The
appraisal will be reviewed and approved by the CA
Department of General Services, which can take at
least 3 months. The appraisal is typically submitted
for review prior to the Conservancy Board
authorizing funds, to ensure that the acquisition
will not exceed the fair market value.
* If the acquisition will collectively spend more than
$15 Million in State funds, an independent appraisal
review; summary of basis for project
recommendation; and any relevant environmental
studies or other documents needs to be posted for
public review no less than 30 days prior to the
Conservancy board meeting. PRC § 5096.513.

Preliminary Title Report and any updates
• Copies of exceptions provided on request
• Specify intended type of title insurance policy
Environmental Assessment (Phase 1 and, if issues
are identified in the Phase 1, a Phase 2
Assessment) or hazardous substance report
Purchase and Sale Agreement and any
Amendments
Other agreements between buyer and seller
concerning the transaction
State Coastal Conservancy
Acquisition Checklist for Grantees

Documents SCC Will Need to Review Prior to
Acquisition
Notes/Status Sent to
SCC
SCC
Review
Complete
Grant Deed or Conservation Easement
SCC Grant Agreement– Conservancy staff will
prepare this agreement.

N/A
Board Resolution from Grantee
SCC Offer to Dedicate Title (OTD) – Conservancy
staff will prepare this document. It must be
recorded at closing.

N/A
Other proposed recorded documents – i.e. if
other funders or entities are involved and require
recorded deed restrictions, easements, or notices
of agreement, the Conservancy will need to review
those documents and agree to the order of
recordation.

Financial Security Arrangements if applicable
(e.g., loans)
Other Documents may need to be reviewed
depending on the specifics of the acquisition – your
project manager will work with you to identify any
additional transaction documents that are required
Baseline Conditions Report- documenting the
property conditions at the time of purchase, signed
and certified by grantee; for easements, the feetitle landowner must also sign the Baseline Conditions Report.

Monitoring & Reporting Program – required for
easement acquisitions
Sign plan – That includes a mockup of a sign
acknowledging the Conservancy’s support for the
acquisition, a map showing proposed location of
the sign, and sign materials.

Preliminary Closing Statement – If there are
multiple state funders, this should separately
acknowledge Conservancy funding amount.

State Coastal Conservancy
Acquisition Checklist for Grantees

In addition to the documents above, you will need to provide the following escrow and title company information:

Documents SCC Will Need to Review Prior to
Acquisition
Notes/Status Sent to
SCC
SCC
Review
Complete
Grantee Escrow Instructions
Provide the following to your SCC project manager as soon as possible.

1. Property name, location, APNs

2. Escrow no.

3. Escrow Company
Escrow officer
Assistant
Phone
FAX
e-mail
Address

4. Title Company
Title officer
Phone
FAX
e-mail
Address
Final Steps Date Sent to SCC
Grantee Invoice Request Letter – Use template provided and sign letter either with a wet-signature or in DocuSign. The Grantee Invoice Request letter must be received by the Conservancy and all above-referenced Conditions Precedent met at least 20 working days prior to escrow closing. The Conservancy will then request the State Controller to transfer the funds into escrow.

Documents to Provide Once Acquisition Is Complete Date Sent to SCC State Coastal Conservancy
Acquisition Checklist for Grantees

Conformed copies of all recorded documents – electronic is fine Final closing statement
Title Insurance Policy

COASTAL CONSERVANCY
Staff Recommendation
April 17, 2025

LOWER EEL RIVER WETLANDS ACQUISITION
Project No. 25-001-01
Project Manager: Morgan Wright
RECOMMENDED ACTION: Authorization to disburse up to $1,272,250, of which $972,250 is from the U.S. Fish and Wildlife Service’s National Coastal Wetlands Conservation Grant Program, to the City of Fortuna to complete pre-acquisition tasks and acquire 237 acres along the Lower Eel River in Fortuna, Humboldt County; and to prepare plans and designs for a park on a portion of the property, and to prepare a management plan for the other portion of the property. The City of Fortuna will retain 7.2 acres for open space, public access, and recreation, and the remaining 230 acres will be transferred to the Wiyot Tribe for the preservation of open space; protection, restoration, and enhancement of natural resources and habitat for fish and wildlife; protection of cultural resources; and to the extent compatible with habitat protection, providing public access and California Native American tribal cultural use and access.

LOCATION: APNs 106-091-040, 200-362-005, and 106-091-044, Fortuna, Humboldt County

EXHIBITS
Exhibit 1: Project Location Map
Exhibit 2: Site Photographs
Exhibit 3: Project Letters

RESOLUTION AND FINDINGS
Staff recommends that the State Coastal Conservancy adopt the following resolution and findings.

Resolution:

The State Coastal Conservancy hereby authorizes a grant of an amount not to exceed one million two hundred seventy-two thousand two hundred fifty dollars ($1,272,250), of which $972,250 is from the U.S. Fish and Wildlife Service’s National Coastal Wetlands Conservation Grant Program funds, to the City of Fortuna (“the grantee”) to complete pre-acquisition tasks and acquire 237 acres along the Lower Eel River in Fortuna, Humboldt County; and to prepare plans and designs for a park on a portion of the property, and to prepare a management plan

LOWER EEL RIVER WETLANDS ACQUISITION

for the other portion of the property. The City of Fortuna will retain 7.2 acres for open space, public access, and recreation, and the remaining 230 acres will be transferred to the Wiyot Tribe for the preservation of open space; protection, restoration, and enhancement of natural resources and habitat for fish and wildlife; protection of cultural resources; and to the extent compatible with habitat protection, providing public access and California Native American tribal cultural use and access.

1. Prior to the disbursement of funds for the acquisition, the grantee shall submit for the review and approval of the Executive Officer of the Conservancy (Executive Officer):
a. All relevant acquisition documents for the acquisition including, without limitation, the appraisal, purchase and sale agreement, deed, escrow instructions, environmental or hazardous materials assessment, and title report;
b. A baseline conditions report; and
c. Evidence that sufficient funds are available to complete the acquisition.

2. The grantee shall pay no more than fair market value for the property, as established in an appraisal approved by the Executive Officer.

3. The property acquired under this authorization shall be managed and operated by the City of Fortuna for open space, public access and recreation; and by the Wiyot Tribe for the preservation of open space; protection, restoration, and enhancement of natural resources and habitat for fish and wildlife; protection of cultural resources; and to the extent compatible with habitat protection, providing public access and California Native American tribal cultural use and access. The property shall be permanently dedicated to those purposes by an appropriate instrument approved by the Executive Officer.

4. Conservancy funding shall be acknowledged by erecting and maintaining a sign on the property or in a nearby publicly-viewable area, the design and location of which are to be approved by the Executive Officer.

Findings:

Based on the accompanying staff recommendation and attached exhibits, the State Coastal Conservancy hereby finds that:

1. The proposed authorization is consistent with Chapter 5.5 of Division 21 of the Public Resources Code, regarding integrated coastal and marine resources projects.

2. The proposed project is consistent with the current Conservancy Project Selection Criteria.

STAFF RECOMMENDATION
PROJECT SUMMARY:

Staff recommends the Conservancy authorize disbursement of up to $1,272,250, of which $972,250 is from the U.S. Fish and Wildlife Service’s National Coastal Wetlands Conservation Grant Program funds to the City of Fortuna (City) to complete pre-acquisition tasks and acquire 237 acres along the Lower Eel River in Fortuna, Humboldt County; and to prepare plans and

LOWER EEL RIVER WETLANDS ACQUISITION

designs for a park on a portion of the property and a management plan for the other portion of the property (the “project”). The City will retain 7.2 acres for open space, public access, and recreation (“City acquisition purposes”), and the remaining 230 acres will be transferred to the Wiyot Tribe (Tribe) for the preservation of open space; protection, restoration, and enhancement of natural resources and habitat for fish and wildlife; protection of cultural resources; and to the extent compatible with habitat protection, providing public access and California Native American tribal cultural use and access(“Tribal acquisition purposes”). The City will retain approximately 7 acres of uplands to facilitate the establishment of a riverfront park with pedestrian and boating access and environmental education opportunities. Tribal management of the 230-acres will ensure compliance with the Tribal acquisition purposes and will facilitate the elimination of inappropriate uses and associated contamination on the property.

The Eel River is California’s third largest watershed, and the Lower Eel River is a critical coastal wetlands area for multiple listed species and riparian birds. The project area includes extensive wetland habitat; 89.52% of the 237-acre project area is made up of nationally decreasing wetland types. The project area includes riverine habitat, freshwater forested/scrub wetland, and freshwater emergent marsh and ponds. The project continues historic efforts to protect and restore the Lower Eel River, an effort involving multiple local, state and federal agencies, tribes, and non-profits.

The project will ensure protection of the property and management of access and use of the area, which currently suffers from inappropriate uses, including trash dumping, firearm use, illegal firewood gathering, and poaching of fish from a deep hole in this reach of river. By ensuring protection and management of access, the project will manage unrestricted off-highway vehicle (OHV) use which has increased turbidity and threatened snowy plover nesting habitat on gravel bars. Sediment deposition from upstream sources exacerbated by OHV use has simplified and degraded stream habitat, filling in holes that provided critical salmonid habitat and shifting this reach from a riffle-pool network to extended shallow riffle reaches.

The Tribe, in partnership with the County of Humboldt and the City, will allow public access to its 230 acres and will increase enforcement to reduce inappropriate activity. The Tribe will prepare a management plan for its 230 acres that will address management of public access to protect habitat. Access management will likely include closing the County road access at dusk, restricting access to daytime hours, and establishing a staff presence in the area. Outside of this project, the Tribe will work with California Department of Fish and Wildlife, Eel River Recovery Project, and other conservation partners to plan, permit, and implement habitat restoration and enhancement on the property. Acquisition of the property will facilitate potential restoration projects such as invasive pampas grass removal; restoration of 25 acres of cottonwood gallery riparian forest; and in-stream habitat restoration through addition of large woody debris, excavation of the mainstem channel to connect habitat during dry season summer flows and to construct deep resting pools and side channels suitable for juvenile rearing. The Tribe will manage the process-based restoration. Acquisition of the property will also enable the Tribe to access its ancestral lands for tribal access that is compatible with habitat protection.

LOWER EEL RIVER WETLANDS ACQUISITION

The project will expand public access to the river on the lands retained by the City. After acquisition, the City will plan a new park, to be called the Riverwalk Park, which will increase recreational opportunities for the low-income residents in the southern part of the city. There is a lack of recreational opportunities and river access in Fortuna and most activities are restricted to organized events. The park will provide additional space for recreation and current concepts are for walking paths and access to the Riverwalk Trail, a picnic and barbeque area, fenced dog park, a playground, and plaza. Riverfront land in Fortuna is extremely limited with most of the land being occupied by farmland and industrial buildings. The park will provide the community and the public with prime viewing of salmon runs and other wildlife. The park is expected to have a dock in the future with a kayak entry point. Anticipated recreational activities include school field trips and summer camps at the park. Interpretive signage at the park will highlight Eel River wildlife as well as tribal history and cultural significance of the area. Other activities include kayaking, educational tours, watching the salmon migration, community events and festivals, and passive recreation, including birdwatching and other wildlife viewing. Passive recreation will be permitted in the Tribe’s parcels as well, but access and use will be managed to prevent inappropriate uses.

The project will preserve an old-growth cottonwood gallery forest, facilitate restoration of riparian forest and habitat enhancement for listed salmonids , which might include partnering with commercial gravel extraction operations for habitat enhancement, and return ancestral lands on the Eel River to the Wiyot Tribe.

Commercial gravel extraction has historically taken place within and near the project area at various sites along the Lower Eel River. The County of Humboldt Extraction Review Team, which regulates gravel extraction, developed recommendations for gravel extraction as a habitat enhancement tool as early as 2013. Recommended techniques currently include: (1) Fish Access Channel: channel excavation that may include pools and incorporate large wood designed to temporarily improve fish migration access; and (2) Riparian Enhancement Extraction: pit excavated down to moist gravel on floodplain surfaces too dry to support beneficial riparian plants, such as willows, cottonwoods, and alders. Techniques are designed to enhance riparian vegetation and native amphibians without supporting non-native bullfrogs.

These techniques have been implemented at other sites in the Lower Eel River and the Van Duzen River, a major tributary, in 2021-2022. Whether these techniques will be used in the project area will be determined during preparation of the management plan or later.

The City of Fortuna has a willing seller letter from the landowner. The City of Fortuna and the landowner are working toward completion of the required documents for site acquisition such as a purchase and sale agreement, updated appraisals, and a baseline conditions report. A concept level site plan for the Riverwalk Park has been completed through a California Natural Resources Agency (CNRA) Riverwalk Parkways grant, and outreach for the design phase has been completed. Outreach consisted of in-person public meetings, an online survey, and direct contact with City staff. On October 11, 2021, a public meeting was hosted where participants were encouraged to provide their design ideas through a comment session and break out tables. Another public meeting was hosted on October 20, 2021, where attendees discussed design ideas through a comment session on voted-on preferred features of the design. The online survey was posted on social media, on physical flyers, shared during the first public

LOWER EEL RIVER WETLANDS ACQUISITION

meeting, and sent to community groups. The online survey consisted of open response and multiple-choice questions and was offered in both English and Spanish.

The planning component of the project includes (1) preparing initial plans and designs for the future park on the City’s 7.2 acres of upland; and (2) preparing a management plan for tribal and public access and future restoration and enhancement of habitat on the Tribe’s 230 acres.

The project also includes completion of pre-acquisition tasks for the entire acquisition such as the appraisal, environmental assessments, preparation of the baseline conditions report, escrow costs, a lot line adjustment, and other tasks.

Site Description: The property is made up of three parcels (APN’s 106-091-040, 200-362-005, and 106-091-044) that span a portion of the Lower Eel River in Fortuna, with seven acres on the east side, and 230 acres of the project area on the west side of the Eel River. Parcel 106-091- 041 consists of 93 acres and 106-091-044 is 91.09 acres; both are zoned Agricultural Exclusive and Natural Resources. The entirety of these two parcels will be part of the 230 acres acquired by the Wiyot Tribe. Parcel 200-362-005 consists of 53.78 total acres and 46.58 acres that span the river and portions to the west of the river is zoned as Natural Resources, whereas the 7.2 acres of uplands on the eastern side of the river is zoned as Freeway Commercial. The 7.2 acres will be rezoned as Public Facilities upon acquisition to the City. A lot line adjustment will be required to split the 7.2 acres retained by the City, from the remaining acres to be acquired by the Wiyot Tribe. The boundary of the lot line adjustment will likely be the middle of the river so both the City and the Wiyot can maintain river access. Commercial, rural, and agricultural land use surrounds the site.

Grant Applicant Qualifications: The City has experience administering grant funds for other projects, and has exhibited a strong interest recently in expanding public access opportunities in this part of Humboldt County.

The Tribe has worked closely with the Conservancy on habitat restoration projects, cultural monitoring and land acquisition projects. The Tribe will soon receive title to the Samoa Dunes and Wetlands property as well as a key parcel of land (Chwunuchguk) near the mouth of the Elk River.

Amy Nilsen, the City Manager of the City, will lead planning for the acquisition of the property and for future establishment of the Riverwalk Park. Adam Canter, the Natural Resource Director for the Tribe, and Michelle Vassel, the Tribal Administrator for the Tribe, will manage the transfer of the property to the Tribe, project management, and facilitation of future public access, interpretive signage and habitat enhancement. Other partners include CNRA (funder), County of Humboldt (access coordination), and the Eel River Recovery Project (educational and interpretive component). California Department of Fish and Wildlife has also provided significant guidance and input to the project team.

CONSISTENCY WITH CONSERVANCY’S PROJECT SELECTION CRITERIA:

The proposed project is consistent with the Conservancy’s Project Selection Criteria, last updated on September 23, 2021, in the following respects:

LOWER EEL RIVER WETLANDS ACQUISITION

Selection Criteria

1. Extent to which the project helps the Conservancy accomplish the objectives in the Strategic Plan.

See the “Consistency with Conservancy’s Strategic Plan” section below.

2. Project is a good investment of state resources.

The proposed acquisition is a good investment of state resources because: (1) it will contribute to meeting the state’s natural and working lands conservation goals and engage a California Native Tribe as called for in the Governor’s 30 x 30 Executive Order; (2) it will advance state and regional water quality improvement goals; and (3) it will advance a longstanding goal of the California Department of Fish and Wildlife by acquiring Lower Eel River gallery forest and protecting and enhancing the biodiversity of habitats for state and federal endangered, threatened, and sensitive species.

3. Project includes a serious effort to engage tribes. Examples of tribal engagement include good faith, documented efforts to work with tribes traditionally and culturally affiliated to the project area.

One of the most important aspects of the project is tribal ancestral land return. Returning this ancestral land to the Tribe will allow tribal members to conduct important ceremonies, as well as stewarding, restoring, and utilizing land that is sacred to them. It will be a key step towards healing the land and the people and wildlife that depend on it. The Tribe has worked closely with the Conservancy and the City to develop this project. The Lower Eel River is of great cultural significance to the Tribe and has long been utilized by the Tribe for fishing, ceremony, and other purposes. The Tribe has been engaged in monitoring and management to support the Pacific lamprey population in the Eel River watershed and across the region. The Tribe’s reservation lands are near the project area, but currently the Tribe does not own any property on the Eel River. Tribal elders have expressed concerns with their safety when accessing the river because of the current uses of unrestricted and hazardous activities at the property. The project will provide the Tribe with riverfront property on their ancestral lands to facilitate habitat restoration and enhancement as well as for ceremonial purposes. Additionally, the project will educate visitors about the anadromous fish populations that are so important to the Tribe. The Tribe requested a government-to-government consultation to discuss this and other projects, and that consultation occurred on March 13, 2025.

4. Project benefits will be sustainable or resilient over the project lifespan.

The project will result in the protection of 212 acres of declining wetlands, 17.5 acres of riverine habitat, and 7.2 acres of associated uplands in perpetuity via a fee acquisition. The property will be protected with long-term commitment to the restoration and conservation of wetlands and associated habitats. The property will be protected through appropriate recorded instruments as well as grant agreements with the Conservancy and CNRA. The City will hold and manage the upland property for open space, public access and recreation in perpetuity, while the Tribe will hold and manage the riparian wetlands parcels for protection, restoration, and enhancement of fish and wildlife habitat, and tribal and public access.

LOWER EEL RIVER WETLANDS ACQUISITION

5. Project delivers multiple benefits and significant positive impact.

The project will facilitate the planning of a new park for the City and return land to the Tribe via a fee simple acquisition, providing the public and tribal members with river access for cultural and recreational activities. The project will protect and enhance habitats and public access to the river. In addition, the project will facilitate enhancement of valuable habitat restoration, including essential habitat for critically endangered coho and Chinook salmon, and protect the valuable habitat from invasive species.

Listed salmonids and many other fish species show signs of recovery in the Eel River, but migration, spawning, and rearing habitat are all constrained. The river corridor needs protection to promote habitat enhancement. Summer fish habitat is degraded due to aggradation and simplification of the channel, lack of pool connectivity, and lack of large wood, and is at risk from OHV use which increases turbidity, dumping, wood poaching, and other destructive activities, such as shooting gas cannisters, on the property. Preserving the property will benefit many listed and other fish species directly. Protection of the shoreline and aquatic habitat will also benefit bird species such as Snowy Plover that utilize these areas for nesting and wintering, or foraging.

6. Project planned with meaningful community engagement and broad community support.

The project is part of an ongoing effort to protect and restore habitat in the Eel River Delta and Lower Eel River with collaboration from California Department of Fish and Wildlife, National Oceanic Atmospheric Administration (NOAA), US Fish and Wildlife Service (USFWS), Humboldt County, the City of Fortuna, Eel River Restoration Project, Conservancy, the Humboldt County Resource Conservation District, and others. Discussions about protection and management of this section of the Lower Eel River began decades ago but increased in 2015 due to a deterioration in water quality that year.

The City held public meetings to get input on planning a riverfront park on the 7 acres of uplands beginning in 2018 and has incorporated public input into the park design. The Tribe has discussed Lower Eel River protection and habitat restoration at its Council meetings, where there was strong support. The Tribal Council regularly discusses efforts to monitor and restore natural resources in the Eel River watershed, including at its public meetings on February 12, April 8, and June 10, 2024. Lower Eel River Restoration planning was discussed at the February 12, 2024, meeting.

PROJECT FINANCING
Coastal Conservancy $300,000
USFWS NCWC grant (via a grant to the Conservancy) $972,250 CA Natural Resources Agency (Required Match) $620,194
Project Total $1,892,444
The expected source of Conservancy funds for this project is an appropriation to the Conservancy from a Fiscal Year 2023/2024 appropriation from the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018 (Proposition 68,

LOWER EEL RIVER WETLANDS ACQUISITION

Public Resources Code Sections 80000-80173). Chapter 9 of Proposition 68 appropriates funds for “protection of beaches, bays, wetlands, and coastal watershed resources” in accordance with Division 21, including acquisition of land in or adjacent to the California coastal zone with open space, recreational, biological, cultural, scenic, or agricultural values. PRC § 80120(c). “Protection” includes actions to improve access to public open space areas and allow for the continued use and enjoyment of property or natural resources. (Section 80002(l)). Consistent with the purposes of this funding source, the proposed project consists of acquisition of 237 acres of wetland, upland, and riverine habitat adjacent to the coastal zone that has open space, recreational, biological, cultural, and scenic value. The project also consists of management planning and design work that protects wetland and coastal watershed by improving access to the property’s open space areas and allows for continued use and enjoyment of its natural resources.

In addition to Conservancy funds, staff seeks authorization to disburse funds from a U.S. Fish and Wildlife Service’s National Coastal Wetlands (NCWC) Grant of $1,000,000, awarded in 2025.

The NCWC Grant provides for the Conservancy to utilize $27,750 for grant management purposes. The project funding includes $646,492 of in-kind and cash match, which is greater than the required base match for the USFWS NCWC grant.

The cost of fee acquisition of the project area is the largest expense, totaling $1,592,444.

The source of $620,194 in CNRA funds is a River Parkway grant, which will count as cash match for the USFWS NCWC funds.

The City of Fortuna will provide $10,000 of in-kind match to the USFWS NCWC grant to manage acquisition of the project area including, negotiations with the landowner, coordinating with funders, and preparing pre-acquisition studies. The County of Humboldt will provide $3,000 in match to the USFWS NCWC grant consisting of staff time for planning and implementation of access management.

The Eel River Recovery Project, a non-profit, is committing $10,698 of in-kind match to the USFWS NCWC grant for staff and volunteer time for education and outreach.

The Tribe will contribute $2,600 of in-kind match to the USFWS NCWC grant to manage the property acquisition and transfer.

Unless specifically identified as “Required Match,” the other sources of funding and in-kind contributions described above are estimates. The Conservancy does not typically require matching funds or in-kind services, nor does it require documentation of expenditures from other funders or of in-kind services. Typical grant conditions require grantees to provide any funds needed to complete a project.

CONSISTENCY WITH CONSERVANCY’S ENABLING LEGISLATION:

The proposed authorization is consistent with the purposes and objectives of Chapter 5.5 of Division 21 of the Public Resources Code, regarding improving and protecting coastal and marine habitats (Section 31220).

LOWER EEL RIVER WETLANDS ACQUISITION

Section 31220(a) authorizes the Conservancy to provide grants for coastal watershed resources protection projects, if the projects meet one or more of the objectives detailed in Section 31220(b).

Consistent with Section 31220(b), the project will achieve the following objectives: protect fish and wildlife habitat within a coastal watershed (Section 31220(b)(2)); reduce unnatural erosion and sedimentation of a coastal watershed (Section 31220 (b)(4); acquire coastal wetlands and watershed lands, including watershed lands draining to sensitive coastal or marine areas (Section 31220(b)(6); and provide public access compatible with resource protection and restoration objectives (Section 31220(b)(8). The project will acquire property interests that will enable public and tribal access while protecting 237 acres of watershed lands containing critical habitat for snowy plover, green sturgeon, steelhead trout, Chinook and coho salmon, and important habitat for pacific lamprey, bald eagle, and western yellow-billed cuckoo.

Section 31220(c) requires projects funded pursuant to the section to have a monitoring component and be consistent with the Water Quality Control Plan, if applicable. Consistent with this section, the project is consistent with the Water Quality Control Plan for the North Coast Region as described in the Consistency with Local Watershed Management Plan/State Water Quality Control Plan section below.

Consistent with Section 31220(a), staff has consulted with the State Water Resources Control Board in the development of the project to ensure consistency with Chapter 3 (commencing with section 30915) of Division 20.4 of the Public Resources Code, regarding the clean beaches grant program.

CONSISTENCY WITH CONSERVANCY’S 2023-2027 STRATEGIC PLAN:

Consistent with Goal 1.2 Return Power to Tribes, the proposed project will provide ownership and management responsibility of 230 acres of coastal ancestral land to the Wiyot Tribe.

Consistent with Goal 2.5 Enhance Recreational Amenities, the proposed project will acquire and transfer 7-acres to the City of Fortuna for the establishment of a new park.

Consistent with Goal 3.1 Conserve Land, the proposed project will protect 237 acres of land to protect coastal resources and enhance habitat.

CONSISTENCY WITH LOCAL WATERSHED MANAGEMENT PLAN/STATE WATER QUALITY CONTROL PLAN:

Projects undertaken pursuant to Section 31220 of the Public Resources Code must be consistent with the following, if available and relevant: Integrated Watershed Management Programs; local watershed management plans; and water quality control plans, adopted by the state and regional water boards.

The proposed project helps implement the following 2007 North Coast Integrated Regional Water Management Plan Goal:

Goals 3: Ecosystem Conservation and Enhancement
• Objective 6 - Conserve, enhance, and restore watersheds and aquatic ecosystems, including functions, habitats, and elements that support biological diversity

LOWER EEL RIVER WETLANDS ACQUISITION

• Objective 7 - Enhance salmonid populations by conserving, enhancing, and restoring required habitats and watershed processes
Acquiring the properties will facilitate the planning and implementation of restoration projects to restore aquatic ecosystems and enhance salmonid populations.

The proposed project is also consistent with the Water Quality Control Plan for the North Coast (adopted by the Regional Water Quality Control Board North Coast Region in 1988 and last updated in 2018) in that it will enhance wildlife habitat, habitat for rare, threatened and endangered species, and spawning, reproduction and/or early development of habitat in the Eel River.

The Water Quality Control Plan for the North Coast designates wildlife habitat, rare, threatened, and endangered species habitat, and spawning, reproduction and/or early development habitat as beneficial uses of the Eel River Hydrologic Unit (Water Quality Control Plan for the North Coast, Table 2-1, pp. 2-8 to 2-12).

CEQA COMPLIANCE:

The proposed acquisition is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.28, which exempts transfers of ownership in land in order to preserve and restore natural conditions and to preserve open space or lands for park purposes. The proposed project will preserve, and allow restoration of, the existing natural resources and habitats of the property and it will preserve open space and lands for park purposes. This statutory exemption applies even if physical changes to the environment or changes in the use of land are a reasonably foreseeable consequence of the acquisition, provided that environmental review otherwise required by this division occurs before any project approval that would authorize physical changes being made to that land. In this case, there will be compliance with CEQA before any physical changes are made to the property.

The planning component of the proposed project is statutorily exempt from review under CEQA pursuant to 14 CCR California Code of Regulations Section 15262, which exempts planning and feasibility studies for possible future actions that have not yet been approved, adopted, or funded. The proposed planning consists of preparing (1) initial plans and designs for the future park on the City’s 7.2 acres of upland; and (2) a management plan for access and future restoration on the Tribe’s 230 acres.

The planning component of the project is also categorically exempt under Section 15306, which exempts data collection and resource evaluation activities that do not result in a serious or major disturbance to an environmental resource. Consistent with Section 15306, the data collection and resource evaluation components of the project will not cause major or serious disturbance to the environment.

The proposed acquisition is also exempt from CEQA review pursuant to 14 CCR Section 15316, which exempts transfers of ownership in land to establish a park where the land is in a natural condition and the management plan for the park has not yet been prepared. The proposed project will transfer land in its natural condition to the City of Fortuna to plan a park for which a management plan has not yet been prepared.

LOWER EEL RIVER WETLANDS ACQUISITION

Upon approval of the project, Conservancy staff will file a Notice of Exemption.

Consent Item 4e

STAFF REPORT
City Council Consent Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Siana L. Emmons, City Clerk
THROUGH: Amy Nilsen, City Manager
SUBJECT: Review and Approve Mayor’s Recommendation of Appointees to the Planning Commission
STAFF RECOMMENDATION:

Review the applications for the Planning Commission and consider approving the Mayor’s recommendation for appointments.

EXECUTIVE SUMMARY:

Planning Commission:

One (1) Regular and One (1) Alternate seat on the Planning Commission is vacant as of March 7, 2025.

The City received two applications:
• Diana (Tina) Christensen – Regular Seat (new appointment) • Colt Amen – Alternate Seat (new appointment)
The term of office for the Planning Commission is four (4) years and if approved, will expire on December 31, 2029.

RECOMMENDED COUNCIL ACTION:

Motion to Approve Mayors Appointment for the Planning Commission. Consent Calendar vote.

ATTACHMENTS:

Board Applications:
• Planning Commission: Diana (Tina) Christensen
• Planning Commission: Colt Amen

Consent Item 4f

STAFF REPORT
City Council Consent Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Director of Finance
THROUGH: Amy Nilsen, City Manager
SUBJECT: Approve Police Lieutenant Jason Kadle as an Authorized Signer for the City of Fortuna with US Bank
EXECUTIVE SUMMARY:

Jason Kadle, as the recently promoted Police Lieutenant, needs City Council approval to become an authorized check signer for the City of Fortuna with US Bank.

City checks require two signatures, City’s current process is to have five authorized signers to ensure checks can always be processed in a timely manner. The other check signers for the City are Police Chief Matt Eberhardt, Director of Finance Aaron Felmlee, City Manager Amy Nilsen, and City Clerk Siana Emmons. These individuals will continue as authorized check signers.

RECOMMENDED COUNCIL ACTION:

Approve Police Lieutenant Jason Kadle as an authorized signer for the City of Fortuna with US Bank. Consent Agenda vote.

Consent Item 4g

STAFF REPORT
City Council Consent Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Kaylyn Stainbrook, Interim Parks and Recreation Director THROUGH: Amy Nilsen, City Manager
SUBJECT: Hydration Station Donation
STAFF RECOMMENDATION:

Accept the donation of a hydration station from Fortuna Sunrise Rotary to be installed by Park Staff at River Lodge.

EXECUTIVE SUMMARY:

President of Fortuna Sunrise Rotary approached Staff requesting to purchase and donate a Hydration Station with Pet Bowl to the River Lodge. With the nearby walking trail in mind, Staff agreed that the Hydration Station with Pet bowl would be a desirable amenity.

Between various City Departments, and with logistical input from Fortuna Volunteer Fire Department, it was determined that an ideal location for installation would be along the front of the River Lodge, just West of the portico.

FISCAL IMPACT:

Staff time will be required; However, there will be no fiscal impact due to staff time being included in the budget.

RECOMMENDED COUNCIL ACTION:

Approve Staff’s recommendation to accept the donation of a hydration station from Fortuna Sunrise Rotary to be installed by Park Staff at River Lodge. Consent Agena Vote.

ATTACHMENTS:
• Product Photograph
Global Industrial™ Outdoor Bottle Filler
& Fountain w/ Pet Station & Filter
Business Item 5a

STAFF REPORT
City Council Business Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Feasibility Analysis for the Fortuna Enhanced Infrastructure Finance District STAFF RECOMMENDATION:

Receive staff report and consider the Feasibility Analysis for a Fortuna Enhanced Infrastructure Finance District (EIFD).

EXECUTIVE SUMMARY:

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; and preliminary funding and financing analysis. On October 21, 2024 the City Council authorized the Interim City Manager to execute a contract with Kosmont Companies to conduct a feasibility analysis of a Fortuna EIFD.

Before your City Council today, is Kosmont Companies staff to share the results of the feasibility analysis.

ADDITIONAL BACKGROUND:

An 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. The most financial benefit for the City would involve a partnership with one or more other taxing entities, such as the County of Humboldt, where dollars are pooled to fund projects within the City. Under the EIFD law, school districts are precluded from participation.

Business Item 5a

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 professional services agreement with Kosmont is $24,750. The funds for this agreement came from General Fund reserves. There is no additional financial impact to receiving the Kosmont feasibility analysis.

RECOMMENDED COUNCIL ACTION:

1. Receive staff report and review Council questions with staff

2. Open Public Comments

3. Close Public Comments

4. Consider the following actions:
a. No action. Receive and file the report only.
b. Direct staff to contact the County of Humboldt to explore an EIFD partnership based on the EIFD Boundary presented as Alternative #1: Specific Plan and Other Sites.
c. Voice vote.

ATTACHMENTS:
• Attachment A – Infrastructure Financing District Analysis Summary March 2025 Prepared by:

Kosmont Companies
Infrastructure Financing District
Analysis Summary
March 2025
Background
2 • The City of Fortuna is evaluating the use of a special purpose financing district such as an Enhanced Infrastructure Financing Districts (EIFD) to capture value from potential new development to fund critical infrastructure and community investment priorities • EIFD tax increment financing (TIF) capacity is estimated to range of up to $80M on a presentvalue basis • While a City-only financing district strategy would likely achieve favorable “return on investment” for the City, a broader partnership including the County of Humboldt would further improve financial feasibility
• In addition to the EIFD funding capacity, the EIFD would elevate the City’s ability to attract other public funding, particularly state and federal grants
• Subject to feedback from City staff and City Council, immediate next steps could include outreach to the County to discuss potential EIFD partnership Presentation Outline
Communicating in a Digital World
3 1. Overview of Tax Increment Financing (TIF) and EIFD

2. District Boundary Considerations for Fortuna

3. Funding and Financing Analysis

4. Potential Next Steps and Timing
4 $0M
$100M
$200M
$300M
$400M
$500M
$600M
0 5 10 15 20 25 30 35 40 45 50 55
Years from District Formation
Note: Illustrative. Conservative 2% growth of existing assessed value (A/V) shown; does not include mark-to-market increases associated with property sales.

What is Tax Increment Financing (TIF) –Not a New Tax
Baseline Property Value at District Formation
All Property Tax Stays with General Fund
New Property Value from
New Development / Rehabilitation
Some Portion of Property Tax Available to TIF District, Remainder Stays with General Fund
Assessed
Property Value
within District
Boundaries
New Total
Value After
TIF District
All Property
Tax Goes to
General Fund
5 Mechanics of TIF / EIFD
Private property
investment or new
development
Increased property
tax revenue from
new property value
Deposited in
separate EIFD
fund
Funds pay for public
improvements
TIF Alternatives in California Today
Communicating in a Digital World
6 Affordable
Housing
Authorities
(AHA)
Community
Revitalization &
Inv. Authority
(CRIA)
Enhanced
Infrastructure
Financing
District
(EIFD)
Neighborhood
Infill Finance &
Transit
Improvements
Act
(NIFTI)
NIFTI-2
Coterminous requirement and other
requirements have made NIFTI &
NIFTI-2 infeasible in other communities
Restriction to fund ONLY
affordable housing (and
not infrastructure) has
been deemed to
restrictive to be feasible
in other communities
Infrastructure
& Revitalization
Financing
District
(IRFD)
Most flexible,
most widely
used
More emphasis on
affordable housing
(25% set-aside)
Climate
Resilience
District
(CRD)
NEW, focus on
climate resilience
related infrastructure
Flexible, voter-approval still
required
EIFD Fundamentals
Communicating in a Digital World
7 45 years from first bond issuance Long Term
Districts
Governance Public Financing Authority (PFA) implements Infrastructure Financing Plan (IFP) Approvals Mandatory public hearings for formation with protest opportunity; no public vote Any property with useful life of 15+ years & of communitywide significance; purchase, construction, expansion, improvement, seismic retrofit, rehabilitation, and maintenance Eligible
Projects
Types of Projects EIFD Can Fund
Partial List
8 Roadway / Parking / Transit
Brownfield Remediation
Storm / Flood / Public Facilities Parks / Open Space / Recreation Libraries & Childcare Facilities Affordable Housing
Broadband Small Business /
Nonprofit Facilities
Wildfire Prevention / Other
Climate Change Response
9 TIF Today versus Former Redevelopment Agencies
Sample of Differences
Former RDAs EIFDs / CRDs / CRIAs
Eligible Use of Funds • Infrastructure and affordable
housing
• Mixed-income housing
• Land clearing and parcel assembly
• Tax and other private business /
developer subsidies
• Public infrastructure (e.g., roads, flood
control, open space, utilities)
• Public facilities
• Affordable housing
Eminent Domain /
Condemnation
• Allowed • Not allowed
Eligible Areas • Must qualify as “blighted” • No “blight” finding required Governance • City Council or County Board
• School entity participation
• Public Financing Authority including
Public Members (no school entities)
Formation • Vote of governing body • 3 public hearings, majority protest opportunity from landowners and
registered voters within district
Why are Public Agencies Authorizing Financing Districts? Communicating in a Digital World
10 1. Return on Investment: Private sector investment induced by district commitment accelerates growth of net fiscal revenues, job creation, housing production, essential infrastructure improvements

2. Ability to attract additional funds / other public money (“OPM”) – tax increment from other entities (county, special districts), federal / state grants / loans (e.g., for transit-oriented development, water, housing, parks, remediation)
Districts in Progress Statewide
(Partial List of EIFDs/CRDs/CRIAs)
Fully Formed In Formation Process Under Evaluation
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, tourism-supportive infrastructure Calipatria (CRD) Economic and climate resilience 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 (CRD) Transportation and affordable housing
Imperial County Renewable energy, housing and infrastructure La Verne + L.A. County Housing and transit-supportive infrastructure Lakewood + L.A. County Mall reimagination, smart streets, affordable housing Long Beach Economic empowerment and affordable housing
Los Angeles (Downtown, San Pedro, other) Affordable housing and transit-supportive infrastructure Los Angeles County 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 Norwalk + L.A. County Affordable housing and infrastructure Ontario Airport-related, blended use, infrastructure
Palmdale + L.A. County Housing, blended use, transit 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 blended use, mall reimagination Redondo Beach + L.A. County Parks / open space, recreation infrastructure Riverside County Thousand Palms Housing, hospitality, medical supportive infrastructure Sacramento County (Unincorporated) Industrial / commercial supportive infrastructure Salinas Water, sewer, and other housing supportive infrastructure San Rafael (EIFD + CRD) Blended-use and climate resilience infrastructure Sanger Commercial, hospitality, supportive infrastructure Santa Cruz (EIFD + CRD) Downtown, blended use, and climate resilience infrastructure Santa Rosa + County of Sonoma Downtown investment, affordable housing, aging infrastructure Vacaville Housing and business park infrastructure
Yucaipa Housing and commercial infrastructure
Comparison of TIF and Other Tools
Communicating in a Digital World
12 District Type Description Revenue
Source
Approval
Structure
Use of
Funds
TIF (e.g., EIFD, CRIA,

IFD, IRFD)
Incremental property tax
revenues from new
development used to fund
local infrastructure.

Max term is 45 years from
approval to issue debt.

Incremental (new
development) property tax
revenues (incl. VLF) – does not
increase taxes
District formation – No vote,
but majority protest
opportunity by landowners
and registered voters
Bond issuance – None
• Infrastructure of regional or
communitywide significance
• Maintenance
• Affordable housing
Mello-Roos Community
Facilities District (CFD)
and/or Assessment
District
Additional assessment or
“special tax” used to fund
infrastructure / services that
benefit property.

Max term is 40 years from
date of debt issuance.

New property assessment or
tax – appears as separate line
item on tax bill
District formation – 2/3 vote of
landowners or registered
voters in district*
Bond issuance – vote of elected
body (City)
• Infrastructure capital
expenditures of benefit to
landowners
• Maintenance
• Public services (e.g., safety,
programs)
General Obligation Voter-approved debt that is
repaid with “override” to 1%
tax levy; City-wide
Direct property tax levied on
all properties at same millage
rate
2/3 vote of registered voters in
entire City
• In accordance with bond
plebiscite
Lease Revenue / COPs General Fund-supported
borrowing, generally utilizing
City-owned assets to be
leased and leased back
General Fund (or other legally
available revenues as
determined by City)
Vote of elected body (City) • In accordance with bond
authorization
 Potential funding strategy can utilize MULTIPLE mechanisms * For CFD formation, a vote of registered voters within the district boundary is required if 12 or more registered voters live therein (otherwise a vote of landowners prorated by acreage).

Potential EIFD Boundary
Alternative #1:

Specific Plan + Other Sites
13 • Focus on Mill Site Specific Plan area
and certain other opportunity site
areas along major corridors
• Approx. 372 acres (12% of City)
• Approx. $178M in existing assessed
value (13% of City)
Source: Humboldt County Auditor-Controller (2025)
Potential EIFD Boundary
Alternative #2:

Entire City
14 • Entire City limits
• Approx. 3,000 acres
• Approx. $1.33B in existing assessed
value
Source: Humboldt County Auditor-Controller (2025)
15 a) Roadway interchange improvements
b) Pedestrian access to Eel River
c) Downtown improvements (e.g., streetscape, beautification) d) Other multimodal improvements
e) Trails
f) Parks and open space
g) Affordable housing
Example Potential Investments to Receive EIFD Funding
16 Example Development Assumptions with Specific Plan Area Absorption Assumed over ~20 Years
Note: AV at buildout values in current 2025 dollars
Sources: Mill District Specific Plan (October 2024 Draft); CoStar (2025) Area # SF or Units Estimated
AV Factor
Estimated
Total AV at Buildout
Residential 100 units $250K per unit $25.0 million
Hotel 125 units $250K per unit $31.3 million
Commercial / Retail / Flex 171,100 SF $300 PSF $51.3 million Industrial / Flex 693,400 SF $170 PSF $117.9 million
Total New Development Assumed within EIFD Study Area $194.2 million 17 • Primary non-school recipients and potential
contributors of property tax are City and County
• City share varies by area and averages ~4.5%
each of every $1 collected in property taxes
 City additionally receives equivalent of ~11.4% of
property tax in lieu of motor vehicle license fees
(MVLF), also available to EIFD
• County General Fund share varies by area and
averages ~15.5%
 County additionally receives property tax in lieu of
MVLF, also available to EIFD, but not incorporated
into this analysis to be conservative
• School-related entities cannot participate
As counties tend to rely more heavily on property tax revenue sources generated by new development within incorporated jurisdictions, it is Kosmont’s experience that it is not reasonable to assume allocation of property tax in lieu of MVLF by the County. As cities benefit from additional non-property tax revenue sources (e.g., sales tax, transient occupancy tax) from new development, it is Kosmont’s experience that it is reasonable for cities to consider contributing property tax in lieu of MVLF.

Tax Rate Area (TRA) weighted average distributions for EIFD Study Area shown. Post-ERAF (Education Revenue Augmentation Fund) distribution.

Parcels within former Redevelopment Agency Project Areas are subject to RPTTF revenue flow until expiration of ROPS obligations.

Source: Humboldt County Auditor Controller (2025)
Property Tax Revenues Available to EIFD
Property Tax Distribution
City

4.5% County

15.5%
Other / School
Entities (not eligible)

80.0%
+ MVLF ~11.4% = 15.9%
18 City allocation includes allocation from both AB8 + MVLF in-lieu. County allocation does not include MVLF in-lieu. * Bonding capacity assumes Year 5 is first bond issuance for EIFD. “Year 5 means fifth year of revenue following district formation. Net proceeds shown. Bondable revenue assumes $25,000 admin charge, 150% debt service coverage. 6.0% interest rate; 30-year term. Proceeds net of 2% underwriter's discount, estimated reserve fund (maximum annual debt service), costs of issuance estimated at $350,000.Source: Kosmont Financial Services (KFS), registered municipal advisor.

EIFD Revenue and Bonding Capacity Scenarios
Boundary Scenario #1 – Specific Plan + Other Corridor Sites EIFD Revenue
Allocation Scenario
Year 5
Accumulated
Revenue +
Bonding
Capacity*
Year 10
Accumulated
Revenue +
Bonding
Capacity*
50-Year
Present-Value
@ 3%
Discount Rate
50-Year
Nominal
Total
A) City 25% $67,200 $273,500 $3,905,300 $10,728,200
B) City 35% $94,000 $382,900 $5,467,400 $15,019,500
C) City 50% $134,300 $791,800 $7,810,600 $21,456,400
D) City 75% $201,500 $1,518,800 $11,715,800 $32,184,700 E) City 25% + County 25% $110,000 $528,300 $7,602,100 $21,030,100 F) City 35% + County 35% $154,000 $1,004,500 $10,643,000 $29,442,100 G) City 50% + County 50% $220,000 $1,718,800 $15,204,200 $42,060,200 H) City 75% + County 75% $620,600 $2,909,400 $22,806,400 $63,090,300 19 City allocation includes allocation from both AB8 + MVLF in-lieu. County allocation does not include MVLF in-lieu. * Bonding capacity assumes Year 5 is first bond issuance for EIFD. “Year 5 means fifth year of revenue following district formation. Net proceeds shown. Bondable revenue assumes $25,000 admin charge, 150% debt service coverage. 6.0% interest rate; 30-year term. Proceeds net of 2% underwriter's discount, estimated reserve fund (maximum annual debt service), costs of issuance estimated at $350,000.Source: Kosmont Financial Services (KFS), registered municipal advisor.

EIFD Revenue and Bonding Capacity Scenarios
Boundary Scenario #2 – Citywide
EIFD Revenue
Allocation Scenario
Year 5
Accumulated
Revenue +
Bonding
Capacity*
Year 10
Accumulated
Revenue +
Bonding
Capacity*
50-Year
Present-Value
@ 3%
Discount Rate
50-Year
Nominal
Total
A) City 15% $544,300 $2,697,000 $17,472,200 $47,928,700 B) City 25% $1,348,600 $4,936,500 $29,120,300 $79,881,200 C) City 35% $2,153,000 $7,176,000 $40,768,400 $111,833,600 D) City 15% + County 15% $1,530,400 $5,442,600 $34,251,100 $94,268,300 E) City 25% + County 25% $2,992,100 $9,512,500 $57,085,200 $157,113,900 F) City 35% + County 35% $4,453,900 $13,582,400 $79,919,300 $219,959,400 20 Potential Cash Flow / Debt Issuance Approaches
• Kosmont Financial Services is in active discussions with public finance underwriters regarding TIF debt issuances in other jurisdictions
• Underwriters have proposed several approaches for the leverage of tax increment for accelerated debt issuance (e.g., 2-3 years from district formation), for example:
a) Tax increment only
b) Overlapping TIF and CFD (CFD Backstop) – landowners / developers must be willing to pay CFD special taxes in the short term (e.g., 5-10 years) until tax increment reaches a level to cover debt service
c) Tax increment with City or County general fund backstop • There are advantages and disadvantages with each approach (e.g., upfront proceeds available, public agency risk, cost of capital)
• Additional alternatives are available if private sector partners (e.g., landowners / developers are willing to advance infrastructure funding in exchange for reimbursement from TIF proceeds)
21 Financing Districts work better with a Multi-Agency Partnership & Attract Other Funding
Other Public Sources
 Cap-and-Trade / HCD grant & loan
programs (AHSC, IIG, TCC,CERF)
 Prop 68 parks & open space grants
 Prop 1 water/sewer funds
 Caltrans ATP / HSIP grants
 Federal EDA / DOT / EPA funding
 Federal ARPA, Invest Act, IIJ Act
Other Private Sources
 Development Agreement / impact fees
 Benefit assessments (e.g., contribution from CFD)
 Statewide Community Infrastructure Program (SCIP)
pooled financing
 Private investment
• Ideal strategy includes City and County partnership
• District which involve a City / County joint effort are more likely to win state grant funding sources • Districts explicitly increase scoring for CA state housing grants (e.g., IIG, AHSC, TCC) Report Card on City/County Financing District Partnerships 22 A growing number of cities are partnering with counties to fund infrastructure through financing districts:

1. Placentia + Orange County

2. La Verne + Los Angeles County

3. Palmdale + Los Angeles County

4. Carson + Los Angeles County

5. Lakewood + Los Angeles County

6. Stockton + Lathrop + Manteca + San Joaquin County

7. Gonzales + Monterey County
Public Agency and Community “Return on Investment”
23 • Housing: 500+ units, including 100+ affordable units • Economic revitalization, climate resilience, quality of life • Sustainable infrastructure investment
• Job creation and wages
• Acceleration of development and related fiscal revenues for City and County general funds • Attract other funding not otherwise available for City projects 24 Illustrative EIFD Formation Schedule
 Tax increment allocation begins fiscal year following district formation  Debt issuance, if desired, would occur after a stabilized level of tax increment has been established (may be 3-5 years) Target Date Task
Q1 2025
a) Conduct outreach/discussion among City staff and Council, County staff and Board of Supervisors, other relevant stakeholders
b) Final determination of EIFD boundaries, targeted projects, governing Public Financing Authority (PFA) Board composition
Q3 2025 c) Participating taxing agencies adopt Resolution(s) of Intention (ROI) and formally establish PFA Q3 2025 d) PFA directs the drafting of the Infrastructure Financing Plan (IFP) Q3 2025 e) Distribute draft IFP to property owners, affected taxing entities, City Council, County Board of Supervisors Q4 2025 f) PFA holds an initial public meeting to present the draft IFP to the public and property owners Q4 2025 g) City Council/legislative bodies of other affected taxing entity contributing increment adopt resolution(s) approving IFP
Q4 2025 h) PFA holds first public hearing to hear additional comments and take action to modify or reject IFP (at least 30 days after “f”)
Q4 2025 / Q1 2026 i) PFA holds second public hearing to consider oral and written protests and take action to terminate proceedings or adopt IFP and form the district by resolution (at least 30 days after “h”) 25 Potential Next Steps
• Address questions, receive and incorporate feedback from City staff • Present findings to City Council
• Conduct stakeholder outreach and approach County to discuss potential EIFD partnership • Based on City/County feedback, pursue district formation as soon as feasible (first action would be City Council consideration of a Resolution of Intention as lead agency) 26 THANK YOU
Questions?
Kosmont Companies
1601 N. Sepulveda Blvd. #382 Manhattan Beach, CA 90266
Ph: (424) 297-1070 | Fax: (424) 286-4632
www.kosmont.com
Disclaimer
27 The high-level analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only.Actual results may differ from those expressed in this analysis.

Discussions or descriptions of potential financial tools that may be available to the Client and public agencies are included for informational purposes only and are not intended to be to be “advice” within the context of this Analysis.

Municipal Advisory activities are conducted through Kosmont Companies’ affiliate, Kosmont Financial Services, which is Registered as a Municipal Advisor with the SEC and MSRB.

Business Item 5b

STAFF REPORT
City Council Business Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Shari Meads, Community Development Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Approve a $49,750 Supplemental Budget Request and Authorize the City Manager to Execute a Professional Services Agreement with Land Logistics, Inc. to Prepare a Commercial Cannabis Program and Ordinance STAFF RECOMMENDATION:

The Community Development Department recommends that the City Council approve a $49,750 Supplemental Budget Request and authorize the City Manager to execute a professional services agreement with Land Logistics, Inc. to prepare a commercial cannabis program and ordinance.

EXECUTIVE SUMMARY:

The City of Fortuna currently prohibits all forms of commercial cannabis activity. The Council has prioritized amending the Zoning regulations and developing a program to allow cannabis retail as a potential new revenue source.

The Community Development Director solicited proposals from Placeworks, Inc, Planwest Partners, and Land Logistics, Inc., to provide professional planning support for this project. Each of the firms is well-qualified and has worked extensively in Northern California, including the far North Coast.

Land Logistics, Inc. provided the most comprehensive and cost-effective proposal (Attachment 1).

They have provided professional planning and development services at the Cities of Calistoga, Crescent City, Lincoln, Patterson, Richmond, Santa Rosa, Willits, Willows, the Counties of Humboldt, Siskiyou and Sonoma, as well as large retail and hospitality firms. The firm is headquartered in Davis, however the two planners who will be assigned to this project are based and live in Willits.

FINANCIAL IMPACT:

The funds requested in this Supplemental Budget Request (Attachment 2) will be utilized for services that cannot be charged to an applicant so the funds must be allocated from General Fund reserves. Allowing cannabis retail activity will generate new revenue for the City. Therefore, it is anticipated that the project will essentially pay for itself within an undetermined period. The salary of the Community Development Director, who will serve as project manager, is included in the City budget.

Business Item 5b

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Motion to approve a Supplemental Budget Request in the amount of $49,750 and authorize the City Manager to execute a Professional Services Agreement with Land Logistics, Inc. to prepare a commercial cannabis program and ordinance. Voice Vote.

ATTACHMENTS:

1. Land Logistics, Inc. Proposal

2. Supplemental Budget Request
LAND

LOGISTICS

PLANNING & DEVELOPMENT SERVICES
April 8, 2025
Shari Meads
Community Development Director
City of Fortuna
621 11th Street
Fortuna, CA 95540
City of Fortuna – Summary Proposal to Conduct Public Agency Cannabis Program Research and Prepare Cannabis Ordinance
Project Understanding
The City seeks Planning support services to conduct research into State law and local agency commercial cannabis regulations and programs in support of preparation of new Fortuna commercial cannabis regulations addressing the potential for establishing cannabis dispensaries and cannabis manufacturing uses. We have provided the below Scope of Work for City review; noted is that many of the work components can be broken out into discreet, standalone work elements if the City chooses.

Scope of Work
Reporting to the Community Development Director, general work responsibilities under this contract would include the following:
▪ Finalize the Scope of Work and prepare a Project Schedule for completion of the identified Scope of Work.
▪ Review of current cannabis-related City Ordinances (including Municipal Code Section

17.06.120) and related City policies and programs.
▪ Conduct research and provide a summary overview of current and anticipated State cannabis laws and regulations, identifying areas for which the City has discretion in establishing commercial cannabis rules and programs. This work would include addressing applicable State cannabis laws, including the State Medicinal and Adult-Use Cannabis Regulation and Safety Act, and as regulated by the State Bureau of Cannabis Control, Department of Food and Agriculture, and Department of Public Health.
▪ Working with City staff, provide an analysis of selected locations in the City that are to be considered as potentially qualifying for commercial cannabis uses (such as dispensaries and manufacturing, the latter to include lands within the City’s new Mill District Specific Plan area), along with consideration of sensitive receptors that may influence commercial cannabis locations.
216 F Street, #38 • Davis, CA 95616 • 530.902.9218
Attachment 1
Summary Proposal for Commercial Cannabis Program
Land Logistics

▪ Analyze current local jurisdiction commercial cannabis regulations and programs (including the Cities of Arcata and Eureka, and Humboldt County. Additionally, to the extent practicable, evaluate municipal financial revenues of these agency’s cannabis programs. ▪ Identify existing Fortuna Municipal Code, General Plan and Mill District Specific Plan provisions requiring either modification or repealing existing City Codes that prohibit commercial cannabis uses.
▪ The understanding is that provisions would remain for indoor cultivation of cannabis for personal use and limited to no more than six plants per residence. ▪ Based on the above research, discuss intended framework of new commercial cannabis regulations and programs with key City staff, including the Community and Economic Development Director, Police Chief, Finance Director, City Attorney and City Manager. This can occur in “round table” format. This would include commercial cannabis discretionary entitlement application submittals and processing.
▪ Prepare detailed outline of intended cannabis ordinance regulations and key issues for review by and follow-up discussion with key City staff.
▪ Land Logistics will lead or support City staff in preparing for and conducting a community meeting or workshop seeking input on the parameters of a City cannabis program. Under the approach for full Land Logistics lead on the community meeting or workshop, tasks would include:
o Prepare notice.
o Prepare meeting handout materials.
o Set up meeting room and lead meeting.
o Prepare summary of meeting.
o Conduct, separate from meeting, a community survey using Survey Monkey or similar format, and prepare summary of survey results.
o Second option is for Land Logistics to conduct above-noted tasks, with the exception of attendance and leading the community meeting.
▪ CEQA analysis. Based on this initial Scope of Work, it is anticipated that the necessary CEQA documentation would be completion of an Initial Study and a Mitigated Negative Declaration (MND) for the commercial cannabis program. The full extent of the needed analysis would be dependent upon the nature of the finalized commercial cannabis program, intended dispensary locations, etc., and would be finalized with City staff prior to conducting any work.

Determination of the need for any underlying technical studies would be made at this time, in coordination with the City. Draft and Final Initial Study and MND documents would be provided to the City for review.
▪ Complete draft cannabis ordinance for City staff review.

Summary Proposal for Commercial Cannabis Program
Land Logistics

▪ Meeting with City staff to discuss draft cannabis ordinance and related documents, and to outline any necessary revisions.
▪ Complete final draft cannabis ordinance.
▪ This Scope of work assumes City staff will complete all noticing requirements for community meetings and public hearings, and for issuance of local and State agency referrals, including posting and distribution of CEQA notices and documents. ▪ Completion of one draft and one final staff report, Planning Commission resolution, City Council ordinance and related documents for both Planning Commission and City Council packets. ▪ Completion of draft and final PowerPoint presentations for up to two public hearings. ▪ Attendance at one Planning Commission and one City Council hearing. ▪ Follow-up actions, as needed and directed by staff. City staff to provide for posting of the CEQA Notice of Determination.

Project Schedule
Land Logistics will commence work following issuance of a notice to proceed, and generally anticipates completion (City Council adoption of cannabis ordinances and any related actions) by Fall 2025, assuming notice to proceed is provided by May 2025.

Cost Estimate
The above Scope of Work would be completed for a cost of $49,750, with any needed final adjustments in costs for the CEQA documentation to be determined based on the required analysis. (The cost estimate is reduced to $47,500 if City staff conducts the community meeting.) Land Logistics Hourly Rates
▪ Leiloni Shine, AICP – Co-Project Manager: $130/hr
▪ Logan Shine – Co-Project Manager: $130/hr
▪ Brian Millar, AICP – Project Advisor (non-billing)
Submitted by:

Brian Millar, AICP
President
Land Logistics, Inc.

Ph: 530-902-9218
Email: [email protected]
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Community Development Department
General Fund
100
✔

0.00 0.00 0.00
Professional Services 49,750.00
49,750.00 146,532.00
Planning support services to develop a commercial cannabis program and ordinance.

Brought to Council for approval at the May 5, 2025 City Council Meeting. 100-6025-3200
Shari Meads April 17, 2025
96,782.00 146,532.00
96,782.00
Attachment 2
Business Item 5c

STAFF REPORT
City Council Business Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Ryan Plotz, City Attorney
THROUGH: Amy Nilsen, City Manager
SUBJECT: Conduct Annual Public Hearing for the Fortuna Business Improvement District Assessment and consider adopting Resolution 2025-12 STAFF RECOMMENDATION:

Staff recommends that the Council conduct the annual Fortuna Business Improvement District public hearing and consider adopting Resolution 2025-12 authorizing the annual assessment for fiscal year 2025-26.

EXECUTIVE SUMMARY
At the April 7, 2025, Regular Meeting, the Council adopted a Resolution of Intention (the “Resolution of Intent”), a copy of which is attached hereto. The Resolution of Intent accomplished the following: (i) approved the FBID annual report as submitted on March 3, 2025, which proposed changes to the assessment rates and the dissolution of the three care areas; (ii) declared the Council’s intention to levy and collect the annual FBID assessment for fiscal year 2025-26 at a flat rate of $25 per qualifying business; and (iii) provided notice of this public hearing and the right of businesses subject to the annual assessment to submit a written or oral protest against the assessment.

As required by law, the Resolution of Intent and the notice of this public hearing was published in a newspaper of general circulation within the City at least seven (7) days prior to the date of this public hearing.

The purpose of this public hearing is to determine whether the FBID annual assessment should be levied for the 2025-2026 fiscal year. The Council may authorize the assessment unless sufficient written protests against the assessment are received by the City Clerk at or before the time fixed for the public hearing.

A protest is successful if written protests are received from the owners of businesses in the assessment area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent. The Council must also consider oral protests during the public hearing, but only written protests that meet the content requirements are counted for purposes of determining whether the protest is successful.

Each written protest must contain a description of the business in which the person submitting the protest is affiliated sufficient to identify the business and, if a person submitting is not shown on the official records of the city as the owner of the business, the protest must contain or be Business Item 5c

accompanied by written evidence that the person submitting is the owner of the business. A written protest which does not comply with these requirements shall not be counted in determining a majority protest. The Council may, however, waive any irregularity in the form or content of any written protest.

If the protest is successful, the Council may not levy the assessment for the particular fiscal year.

If the protest is not successful, the Council may authorize and levy the assessment by adopting Resolution 2025-12, attached hereto.

Staff recommends that the Council adopt the proposed resolution, assuming the protest is unsuccessful.

FINANCIAL IMPACT:

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Hearing

3. Receive any testimony

4. Close Public Hearing

5. Determine whether a protest exists

6. If the protest is unsuccessful, motion to adopt Resolution 2025-12, read by title only.

Roll Call Vote.

ATTACHMENTS:
• Resolution of Intention, (Resolution 2025-07)
• Resolution 2025- 12, A Resolution of The City Council of The City of Fortuna Authorizing the Levy of an Annual Assessment For 2025-2026 Fiscal Year for The Fortuna Business Improvement District

7. The time and place for a public hearing to be held by the City Council on the levy of the proposed flat assessment for FY 2025-26 are set for May 5, 2025, at 6:00 PM, at City Hall located at 621 11th Street, Fortuna, CA 95540. The clerk shall give notice ofthe public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City not less than seven days before the public hearing.

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

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

10. If written protests are received from the owners of businesses in the district area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to levy the proposed assessment for the 2025-2026 fiscal year shall be taken for a period of one year from the date of the finding of a majority protest by the City Council.

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

PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 7
th day of April 2025 by the following vote:

AYES: Council Member Diaz, Mayor Pro Tern Trent, Mayor Johnson NOES: None
ABSENT: Council Member Conley
ABSTAIN: None
RESOLUTION 2025-12

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA AUTHORIZING THE LEVY OF AN ANNUAL ASSESSMENT FOR THE 2025-2026

FISCAL YEAR FOR THE FORTUNA BUSINESS IMPROVEMENT DISTRICT WHEREAS, in 1990, the City Council of the City of Fortuna established the Fortuna Business Improvement District under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code §§ 36500 et seq.); WHEREAS, the Fortuna Business Improvement District continues to confer a special benefit on those businesses subject to the annual assessment;
WHEREAS, on March 3, 2025, the Council received and approved the annual report of the Fortuna Business Improvement District advisory board without modification; WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, the City Council adopted Resolution No. 2025-07 declaring its intention to levy the annual assessment for the 2025-2026 fiscal year and setting the time and place for a public hearing on the proposed assessment;
WHEREAS, pursuant to Resolution No. 2025-07, the Council set the public hearing for April 21, 2025, at the Regular Meeting of the City Council, and caused the text of the resolution to be published as required by law; and
WHEREAS, by way of this Resolution, the Council hereby authorizes the levy and collection of the annual assessment for FBID at the rates set forth in this Resolution, and makes further findings as set forth below.

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

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

2. The City Council does not make any change to the boundaries of the Fortuna Business Improvement District.

3. The City Council does hereby dissolve the three core areas (i.e., the Downtown Care Area, the Redwood Village Shopping Center Core Area, and the Strongs Creek Plaza Core Area), and such core areas shall be part of the Fortuna Business Improvement District generally.

4. There being an unsuccessful protest, the City Council authorizes the levy and collect assessments in the annual amount of $25 upon all businesses, trades and professions located within the boundaries of the Fortuna Business Improvement District.

5. The activities and improvements authorized by section 5.40.070 of the Fortuna Municipal Code shall remain unchanged for the 2025-2026 fiscal year.

6. Reference is made hereto to the Annual Report approved by the Council on March 3, 2025, and on file with the City Clerk for a full and detailed description of the improvements and activities to be provided for the 2025-2026 fiscal year, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year.

7. The Annual Report is approved without modification.

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

PASSED and ADOPTED at a regular meeting of the City Council of the City of Fortuna, California, on this 5th day of May, 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
__________________________
Mike Johnson, Mayor
ATTEST:
__________________________
Siana Emmons, City Clerk
Business Item 5d

STAFF REPORT
City Council Business Item
DATE: April 21, 2025
TO: Honorable Mayor and Council Members
FROM: Ryan Plotz, City Attorney
THROUGH: Amy Nilsen, City Manager
SUBJECT: Conduct Second Reading and Adopt Ordinance 2025-774, amending the Fortuna Business Improvement District regulations
STAFF RECOMMENDATION:

Staff recommends that the Council conduct a second reading, by title only, of and adopt Ordinance 2025-774, which amends the Fortuna Business Improvement District (“FBID”) regulations.

DISCUSSION
The proposed Ordinance is intended to modify the existing FBID regulations contained in the Fortuna Municipal Code (“FMC”) to be consistent with the structural changes to FBID proposed by Resolution 2025-07.

In particular, the proposed Ordinance would make the following amendments to Chapter 5.40 of the FMC:

1. Dissolves the three existing benefit core areas (i.e., the Downtown Care Area, the Redwood Village Shopping Center Core Area, and the Strongs Creek Plaza Core Area) and specifies that those areas shall, instead, become part of the district generally and pay the same assessment as those businesses located outside of the core areas.

2. Revises the section imposing the benefit assessment to allow the Council to set the method and basis for calculating the annual assessment through the annual re-authorization process required by the Street and Highways Code.

3. Deletes certain definitional provisions that are no longer applicable to an annual assessment based upon a flat rate (as opposed to the prior rate which was based upon a percentage of gross receipts).

4. Revises the composition of the Advisory Committee to remove requirements for representation from the three core areas.

5. Further revises the composition of the Advisory Committee to reduce the number of Advisory Committee members from seven (7) to five (5) and specifies that (i) four (4) members shall be from among the following industries: retail, professional and service, hospitality, manufacturing, and/or wholesale; and (ii) one City Council liaison.

Business Item 5d

6. Removes the requirement that certain funds be allocated to the three core areas and, instead, provides that all funds raised within the District shall be used to promote the entire community.

7. Maintains the principal purpose for which the District was formed.

Staff recommends these changes to ensure consistency between the proposed changes to FBID as recommended by the Advisory Committee in its Annual Report, which was approved by Council on March 3, and Resolution 2025-07 which the Council approved on April 7.

FINANCIAL IMPACT:

The proposed assessment is a flat rate of $25 per business. There are approximately 660 businesses in the City of Fortuna and a $24 flat rate would generate an estimated $16,500 annually.

The total expenditures for Fiscal Year 2024-2025 year-to-date are $16,523.65. The FBID fund has a current balance of $39,750 with $6,350 reserved for funding in the Redwood Village Core Area and $3,150 reserved for funding in the Strongs Creek Core Area. This leaves $30,250 that can be spent with no Core Area restrictions.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open Public Comment

3. Close Public Comment

4. Motion to conduct second reading and adopt, read by title only, Ordinance 2025- 774. Roll Call Vote.

ATTACHMENTS:
• Ordinance 2025-774, An Ordinance Of The City Council Of The City Of Fortuna, California Amending Chapter 5.40 – Fortuna Business Improvement District – Of The Fortuna Municipal Code And Determining The Ordinance To Be Exempt From CEQA ORDINANCE 2025-774

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

DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA
WHEREAS, the City of Fortuna, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, by way of Ordinance 90-550 adopted on May 21, 1990, the City Council established the Fortuna Business Improvement District (“FBID”) pursuant to the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code, §§ 36500 et seq.); and
WHEREAS, since its inception in 1990, FBID has existed to promote the economic revitalization and physical maintenance of the business districts in order to create jobs, promote tourism, support existing businesses, and attract new businesses; and WHEREAS, FBID’s activities are funded through a limited assessment upon businesses located and operating within the district and, from time-to-time, from general fund revenues as determined annually by the City Council; and WHEREAS, FBID continues to confer a special benefit on those businesses subject to the annual assessment; and
WHEREAS, on March 3, 2025, the Council received and approved the annual report of the FBID advisory board without modification; and
WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, the City Council adopted Resolution No. 2025-07 declaring its intention to levy the annual assessment for the 2025-2026 fiscal year and setting the time and place for a public hearing on the proposed assessment; and
WHEREAS, by way of this Ordinance, the City Council desires to make changes to Chapter 5.40 of the Fortuna Business Improvement District as set forth herein; and WHEREAS, the City Council has considered the staff report, supporting documents, public testimony, and all appropriate information that has been submitted with this Ordinance; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

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

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

SECTION 2. CEQA. The City Council finds, pursuant to the California Environment Quality Act (CEQA), Guidelines section 15378, that this Ordinance is not a Project as defined by CEQA. Furthermore, the Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) as it is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Therefore, adoption of this Ordinance is statutorily exempt from CEQA.

SECTION 3. Fortuna Municipal Code Amendment. Chapter 5.40 – Fortuna Business Improvement District – of the Fortuna Municipal Code is hereby amended as set forth in Exhibit A attached hereto and incorporated herein by this reference.

SECTION 4. Effective Date. This Ordinance shall become effective on the 31st day after its adoption by the City Council. The Clerk shall cause this Ordinance to be published in the manner required by Government Code section 36933.

SECTION 5. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable.

The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.

INTRODUCED and FIRST READING CONDUCTED at a regular meeting of the City Council of the City of Fortuna, California, on this 7th day of April 2025, by the following vote:

AYES: Council Member Diaz, Mayor Pro Tem Trent, Mayor Johnson NAYS: None
ABSENT: Council Member Conley
ABSTAIN: None
Mike Johnson, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
SECOND READING CONDUCTED, PASSED, and ADOPTED at a
regular meeting of the City Council of the City of Fortuna, California, on this 5th day of May, 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

Mike Johnson, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
Exhibit A
Note: All revisions to Chapter 5.40 made by this Ordinance are shown below as strikethrough text for deletions and bold-underlined text for additions.

Sections:

5.40.010 Establishment of district.

5.40.020 Definitions.

5.40.030 Benefit assessment.

5.40.040 Residential exclusion.

5.40.050 Advisory committee.

5.40.060 Allocation of funds.

5.40.070 Purposes of assessments.

5.40.080 Collection of benefit assessment.

5.40.010 Establishment of district.

A parking and business improvement district to be known as the “Fortuna Business Improvement District” (the “district”) is hereby established pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highway Code Section 36500 et seq. The boundaries of the district and of the three benefit core areas within the district shall be as set forth on Exhibit A attached to the ordinance codified in this chapter and on file in the city clerk’s office; provided, however, that effective July 1, 2025, the three benefit core areas previously established shall be dissolved as special benefit zones within the District and, instead, such areas shall be considered part of the District, generally.

5.40.020 Definitions.

For the purpose of calculating the amount of assessment owed, the following definitions shall apply:
“Fiscal year” means July 1st to June 30th of each year. “Gross receipts” includes the total amount of the sale price of all sales and the total amount charged or received for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from gross receipts shall be cash discounts allowed and taken on sales; credit allowed on property accepted as part of the purchase price and which property may later be sold; any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit; amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected; that portion of the receipts of a general contractor which represent payments to subcontractors; provided, that such subcontractors are licensed under this chapter, and provided the general contractor furnished the collector with the names and addresses of the subcontractors and the amounts paid each subcontractor. “Hospitality” businesses include all bars, restaurants, hotels, motels and RV parks. “Professions” and “service” businesses include general office, attorney, architects, physicians and others in a medical/health service field, news and advertising media, printers, photographers, real estate brokers, builders, service stations, repairing and servicing businesses, renting and leasing businesses, laboratories (including dental and optical), hearing aid services, utilities, artists and designers, vending machine businesses, and other business not included in the “retail” category, as defined in this section. “Retail businesses” include all businesses not covered by other definitions set forth in this section at least 50 percent of whose gross income is derived from “retail sales” as that is defined in the California Sales and Use Tax Law. The fact that a substantial part of its business consists of other than retail sales does not exclude the business from classification so long as such other business component does not account for more than 50 percent of such business gross income.

Wholesale and Manufacturing. “Wholesale” businesses are those that sell (something) in quantity usually, for resale. “Manufacturing” businesses are those that produce something from raw materials by hand or machinery.

5.40.030 Benefit assessment.

All businesses, trades and professions located within the boundaries shown on Exhibit A attached to the ordinance codified in this chapter and found on file in the office of the city clerk, shall, commencing July 1, 1990, pay a benefit assessment in addition to the city business license fee, in the amounts identified authorized by the City Council in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code, §§ 36500 et seq.). in Exhibit B as amended on March 18, 2002, and attached to the ordinance codified in this chapter and found on file in the office of the city clerk
The benefit assessment shall be payable annually during each fiscal year, as provided in FMC 5.40.080.

5.40.040 Residential exclusion.

No one shall be required to pay an assessment based on a residential use within the district.

5.40.050 Advisory committee.

A. The authorized number of members of the advisory committee of the district shall be seven five unless modified by an amendment of this chapter.

B. The city council shall appoint the advisory committee and prioritize appointments such that the advisory committee is comprised of the following appointments:

1. Four representatives from the retail, professional and service, manufacturing/wholesale, and hospitality industries within the district;

2. City council liaison, one representative;

1. Downtown core area, one representative;

2. Redwood Village Shopping Center core area, one representative;

3. Strongs Creek Plaza core area, one representative;

4. City council liaison, one representative;

5. Citywide, one representative;

6. Fortuna chamber of commerce, one representative;

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

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

1. Retail, three representatives;

2. Professional and service, two representatives;

3. Manufacturing/wholesale, one representative; and

4. Hospitality, one representative.

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

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

5.40.060 Allocation of funds.

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

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

5.40.070 Purposes of assessments.

The purposes for which the funds raised by said benefit assessment shall be devoted to the statutory purposes set forth in Section 36500 of the Act, or one or more of said purposes, which are as follows:

A. Promotion of public events which are to take place on or in public places in the district;
B. Decoration of any public place in the district;
C. Furnishing of music in any public place in the district; D. The general promotion of business activities in the district; E. Marketing to fill available space, recruiting and expansion of commercial enterprise.

Business Item 5e

STAFF REPORT
City Council Business Item
DATE: May 5, 2025
TO: Honorable Mayor and Council Members
FROM: Kaylyn Stainbrook, Interim Parks & Recreation Director THROUGH: Amy Nilsen, City Manager
SUBJECT: Adult Sports Team Processing Fee
STAFF RECOMMENDATION:

Adopt a flat processing fee to be added to each team’s league fee in place of individual player fees.

EXECUTIVE SUMMARY:

The City of Fortuna Parks and Recreation Department facilitates three adult sports leagues throughout the year: Adult Basketball, Adult Softball, and CoEd Softball. Currently, each team is responsible for submitting a forfeit deposit at the time of team registration. Park Staff then determines League Fees based on the cost of equipment and the contracted costs of the Eel River Valley Officials Association (ERVOA), who provides referees, umpires, and scorekeepers.

Separately, each individual player then contacts the Park Office in person or over the phone to process a $5 resident fee or $10 non-resident fee and to sign a waiver.

For the 2025 Adult Basketball League, there were 205 Adult Basketball transactions processed by Park Staff with 173 of them being individual player fees. The player fees collected totaled $1320. There were 16 registered teams. City collected an approximate average of $82.5 per team in Player Fees.

With new and limited staff in the Park Office, the numerous basketball registrations made operations very challenging. Due to the Park Office’s current staffing state, there is typically only one operator handling the office, including in-person, telephonic, and electronic inquiries for rentals, registrations, and Fortuna Transit scheduling and dispatching. Each sports transaction requires time to process the payment, time to update information on the team’s record, and time to report player eligibility to the ERVOA. Additionally, each cash/check receipt must be printed for daily finance deposits and then must be reviewed/audited by Finance staff.

To reduce staff time in the Finance and Parks & Recreation Departments, save paper on receipts and waivers, and minimize miscommunications and tracking errors regarding player eligibility, Staff recommends removing the individual Player Fee from the Fee schedule, and instead, adopting a flat $100 processing fee to be included in each team’s league fee.

FISCAL IMPACT:

The change of team fee will be negligible; However, this change will significantly save staff time.

Business Item 5e

RECOMMENDED COUNCIL ACTION:

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

2. Open Public Comment

3. Close Public Comment

4. Motion to Adopt a $100 Adult Sports Team Processing Fee to Replace Individual Player Fees and be Included in each Team’s League Fee. Roll call vote.

ATTACHMENT:
• Proposed Fee Schedule Revision

CITY OF FORTUNA

RECREATION FEE SCHEDULE
Fee Description FY 24-25 Fee

1. RECREATION CLASS CONTRACTOR FEES
A. All Activity Class Contractors
Charge will be based upon gross revenues (excluding materials fee) 30% of gross revenues

2. RECREATION PROGRAM FEES
A. Basketball
Adults, per individual
Resident (Fortuna Zip Code) $ 5.00
Non-resident $ 10.00
Youth Hot Shots
Per individual $ 60.00
Per additional sibling $ 55.00
Non-resident $ 10.00
B. Adult Sports Leagues (Slowpitch Softball, Co-Ed Slowpitch Softball, and Basketball) Adult Leagues, per individual
Resident (Fortuna Zip Code) $ 5.00
Non-resident $ 10.00
Adult Sports League Fee, per team $ 100.00
C. Other Programs
Full-Day Summer Camp
Weekly rate, per child $ 130.00
Full rate paid in advance, per child $ 1,170.00
Non-resident rate, per child $ 10.00
Half-Day Summer Camp
Weekly rate, per child $ 80.00
Non-resident rate, per child $ 10.00
Leader-in-training, weekly rate $ 5.00
Recreation Break Camp Program, per day $ 35.00
Per Additional Sibling, per day $ 30.00
Team League fees equal the cost to the City divided by the number of teams entered into each of the leagues plus a processing fee individual player fees, as follows:

Fees for new recreational programs are based on actual costs incurred by the City divided by the number of participants.

Team League fees equal the cost to the City divided by the number of teams entered into each of the leagues plus individual player fees, as follows:

CITY OF FORTUNA

RECREATION FEE SCHEDULE
Fee Description FY 24-25 Fee

3. ADMINISTRATIVE ADJUSTMENTS
The City Manager shall have the authority to adjust the aforementioned fees when special circumstances indicate that the fee being charged according to this Resolution is clearly inappropriate. In addition, the City Manager shall have the authority to determine the fee amount for a City service that is not addressed in this Resolution based upon the actual cost of providing the service and / or the actual cost for the City to issue a permit.

City Manager’s Report

STAFF REPORT
City Manager's Report
DATE: May 5, 2025
TO: Honorable Mayor and City Council Members
FROM: Amy Nilsen, City Manager

1. Upcoming Council Meeting Dates
*Special Meeting/Workshop
Monday, May 19, 2025
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall
Monday, June 2, 2025
6:00 p.m.

Regular City Council Meeting
Council Chambers at City Hall

2. Upcoming Planning Commission Meeting Dates
Tuesday, May 13, 2025
6:00 p.m.

Regular Planning Commission Meeting
Council Chambers at City Hall
Tuesday, May 27, 2025
6:00 p.m.

Regular Planning Commission Meeting
Council Chambers at City Hall

3. Upcoming Measure E Meeting Dates
Tuesday, September 16, 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, May 7, 2025
**CANCELLED**
Regular RCRPD Meeting
Wednesday, June 4, 2025
2:30 p.m.

Regular RCRPD Meeting
Council Chambers at City Hall

5. Upcoming Fortuna Business Improvement District (FBID) Meeting Dates Tuesday, July 22, 2025
8:30 a.m.

Regular FBID Meeting
Council Chambers at City Hall
Tuesday, October 28, 2025
8:30 a.m.

Regular FBID Meeting
Council Chambers at City Hall

6. Verbal Report