Fortuna City Council
September 15, 2025

Meeting Agenda
Monday, September 15, 2025 at 6:00 pm
621 11th Street, Fortuna CA
Regular Meeting Agenda
Zoom Option: 1-669-900-9128 Meeting ID 424 428 8038 Password 836453 • 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
Proclamation to Commemorate the 238th Anniversary of the Constitution of the United States of America
a.

Proclamation Recognizing September 2025 as National PACE Month in the City of Fortuna
b.

2. INTRODUCTIONS
a. Introduction of Hannah Vitello, Recreation Supervisor

3. 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 – September 2, 2025 (Special Meeting) b. Administrative Department Monthly Report
Community Development Department Monthly Report (No Staff Report for August)
c.
d. Finance Department Monthly Report
e. Parks & Recreation Monthly Report
f. Police Department Monthly Report
g. Public Works Monthly Report
h. Report of Disbursements
Approve Mayor's Appointment of Richard Mull to the Rohner Community Recreation and Parks District Board
i.

4. CITY COUNCIL BUSINESS
a. Approve Investment Policy for FY 25-26, Resolution 2025-24 Selection of Preferred Design Alternative for Kenmar and Ross Hill Road Intersection
b.

Approve a Supplemental Budget Request for $11,333.85 to Address Immediate Cyber Security Mandates for the Fortuna Police Department c.

5. STUDY SESSION
a. Mobile Home Rent Stabalization

6. 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. 8. CITY MANAGER’S REPORT

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

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

10. Contact: Siana L. Emmons, City Clerk ([email protected] 707-725-1409) | Agenda published on 09/11/ 2025 at 3:40 PM
Redwood Region Economic Development Corporation (RREDC), Redwood Coast Energy Authority (RCEA), Parks & Recreation Commission Alternate Council Member Abe Stevens
Humboldt County Association of Government Alternate, Redwood Region Economic Development Corporation
c.

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.

11. In Recognition of
Constitution Week
September 17 - 23, 2025
WHEREAS, The Constitution of the United States of America, the guardian of our liberties, embodies the principals of limited government in a Republic dedicated to rule by law; and
WHEREAS, it is the privilege and duty of the American people to commemorate the two hundred and thirty-eighth anniversary of the drafting of the Constitution of the United States of America with appropriate ceremonies and activities; and WHEREAS, it is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary, and to the patriotic celebrations which will commemorate it; and
WHEREAS, Public Law 915 guarantees the issuing of a proclamation each year by the President of the United States of America designating September 17 through 23 as Constitution Week,
NOW THEREFORE, I Mayor Mike Johnson, by virtue of authority vested in me as Mayor of the City of Fortuna, state of California, do hereby proclaim the week of September 17 through 23 as Constitution Week and urge all citizens to study the Constitution and reflect on the privilege of being an American with all the rights and responsibilities which that privilege involves.

SIGNED this 15th day of September 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
In Recognition of
Redwood Coast National PACE Month
September 2025
WHEREAS, the elderly population in Humboldt County is growing rapidly, with a significant impact on health care needs and costs; and
WHEREAS, the Program of All-Inclusive Care for the Elderly (PACE) is a fully integrated, comprehensive model of care that allows older adults who qualify for a nursing home level of care to continue living safely and independently in their homes and communities; and
WHEREAS, participants enrolled in PACE receive all Medicare- and Medicaidcovered services, along with additional supports such as rehabilitation, transportation, nutrition, social engagement, and family caregiver assistance that promote overall health and well-being; and
WHEREAS, PACE programs assume full financial responsibility for participants’ medical care and related services—including hospitalization, and long-term care— through capitated payments from Medicare and Medicaid, thereby helping to control costs for the state while improving quality of care; and WHEREAS, Redwood Coast PACE, a program of the Humboldt Senior Resource Center, has served more than 650 older adults in Humboldt County with currently 369 adults enrolled with centers located in Fortuna, Eureka, and now Arcata, providing a trusted local resource for families and seniors alike; and WHEREAS, Redwood Coast PACE celebrates 11 years with the Humboldt Senior Resource center, being the only rural PACE in California and considered the most successful PACE program in the country; and
WHEREAS, PACE has consistently demonstrated improved health outcomes, greater participant satisfaction, and enhanced quality of life for older adults, while supporting families and strengthening communities;
NOW THEREFORE, I Mayor Mike Johnson, by virtue of authority vested in me as Mayor of the City of Fortuna, state of California, do hereby proclaim September 2025 as National PACE Month in the City of Fortuna, and encourage all citizens to recognize the importance of Redwood Coast PACE, a program of the Humboldt Senior Resource Center in ensuring dignity, independence, and quality care for our community’s seniors.

SIGNED this 15th day of September 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
Meeting Agenda
Minutes
Tuesday, September 2, 2025 at 5:00 pm
621 11th Street, Fortuna CA

SPECIAL MEETING
Zoom Option: 1-669-900-9128 Meeting ID 895 0127 1494 Password 288406 • 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
Minutes:

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

1. CONSENT CALENDAR
Minutes:

PUBLIC COMMENT: There being no additional comments from the public, Mayor Johnson closed the public comments. CITY COUNCIL ACTION: Mayor Pro Tem Trent moved, seconded by Council Member Diaz, to approve consent calendar items b and c. AYES: Council Members Conley, Diaz, Stevens, Mayor Pro Tem Trent, Mayor Johnson. NOES: None ABSTAIN: None ABSENT: None MOTION CARRIED: 5/0 CITY COUNCIL ACTION: Council Member Diaz moved, seconded by Council Member Stevens, to approve consent calendar items a. AYES: Council Members Conley, Diaz, Stevens, Mayor Johnson NOES: None ABSTAIN: Mayor Pro Tem Trent ABSENT: None MOTION CARRIED: 4/0
a. City Council Minutes – August 18, 2025 (Regular Meeting) b. Report of Disbursements
c. Ducks Unlimited - Bingo Permit Application

2. DISCUSSION ITEM(S)
City of Fortuna Revenue Generation Ad Hoc Committee Update and Discussion
Minutes:

STAFF REPORT: Finance Director Aaron Felmlee and City Manger Amy Nilsen, provided a staff report and presentation on the City of Fortuna Revenue Generation Ad Committee. PUBLIC COMMENT: Connie Decoe-Munier, Sandy Dale, Sue Long. There being no additional comments from the public, Mayor Johnson closed the public comments. CITY COUNCIL ACTION: Council Member Conley moved, seconded by Council Member Diaz, to direct staff to return with an enhanced investment plan for the River Lodge, including physical upgrades and including marketing. AYES: Council Members Conley, Diaz, Mayor Pro Tem Trent, Mayor Johnson. NOES: Council Member Stevens ABSTAIN: None ABSENT: None MOTION CARRIED: 4/1
a.

3. CITY COUNCIL BUSINESS
Minutes:

ABSENT: None
Authorize the City Manager to Award the River Lodge Exterior Staining Project to Hamanaka Painting Co. and Establish a Maximum Contract of $158,000
Minutes:

STAFF REPORT: Public Works Director, Brian Issa, provided an brief history and staff report on the River Lodge staining project. PUBLIC COMMENT: There being no additional comments from the public, Mayor Johnson closed the public comment section.

CITY COUNCIL ACTION: Council Member Diaz moved, seconded by Mayor Pro Tem Trent, to Authorize the City Manager to award the River Lodge Exterior Staining Project to Hamanaka Painting Co. and establish a not to exceed contract amount of $190,000 AYES: Council Members Conley, Diaz, Mayor Pro Tem Trent, Mayor Johnson. NOES: Council Member Stevens ABSTAIN: None MOTION CARRIED: 4/1
a.

4. STUDY SESSION
Cannabis Policy Study Session
Minutes:

STAFF REPORT: Senior Policy Advisor, Mark Lovelace of HdL Companies, provided a Policy Study Session on Cannabis. PUBLIC COMMENT: Michelle Bushnell, Matt Eberhardt, Sue Long There being no additional public comment, Mayor Johnson closed public comment.

COUNCIL ACTION: Council Member Conley moved, seconded by Council Member Diaz to have staff return with a Supplemental Budget Request indicating a specific amount to pay for a consultant to facilitate a public meeting to allow input on the potential of allowing cannabis industry within the City of Fortuna. AYES: Council Members Conley, Diaz, Stevens, Mayor Pro Tem Trent, Mayor Johnson NOES: None ABSENT: None ABSTAIN: None MOTION a.

5. Contact: Siana L. Emmons, City Clerk ([email protected] 707-725-1409) | Minutes published on 08/28/ 2025 at 4:29 PM
CARRIED: 5/0
CITY MANAGER’S REPORT
Minutes:

STAFF REPORT: City Manager, Amy Nilsen, provided a verbal report.

6. FUTURE AGENDA ITEMS
Minutes:

None at this time.

7. ORAL COMMENTS FROM THE PUBLIC
Minutes:

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

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

9. ADJOURN
Minutes:

CITY COUNCIL ACTION: Mayor Pro Tem Trent moved, seconded by Council Member Conley to adjourn the meeting at 6:52 pm. MOTION CARRIED: 5/0

10. Dear Mayor of Fortuna and Fortuna City Council –
I write this email in support of the City continuing ownership of the Riverlodge. Under the current ownership, the Riverlodge provides a venue for fundraisers that is convenient, cost effective, and run by flexible staff that always put in extra effort for our causes. I have been a part of many fundraisers held at Riverlodge that would not have been as successful if not for the partnership with the City of Fortuna.

I believe a City should be supportive of non-profits that are invested in community development within the footprint of the City. I am not confident that the change in ownership to a for profit third party company will continue the support in the same fashion.

Christopher Broadstock| Branch Manager
Fortuna
NMLS #1480036
Fortuna Branch
909 Main Street
Fortuna, Ca. 95540
Ph. (707) 725-7150 ext 08718
Fax (707) 725-8096
Customer Service 1 800 922 8742
www.tricountiesbank.com | [email protected]

Consent Item 4b

STAFF REPORT
City Council Consent Item
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Siana L. Emmons, City Clerk
THROUGH: Amy Nilsen, City Manager
SUBJECT: Administrative Department Monthly Report for August 2025 STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

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

CITY ATTORNEY
The City Attorney billing was 17.89 hours for the month of August with the Mitchell Law Firm, LLC. Project support for these months included public records request review, ordinance review, contract review, personnel inquiries and various email and telephone calls.

CITY CLERK DIVISION
For the month of August, the Clerk’s Office prepared and published one Notice of Cancellation for a Regular City Council meeting, one agenda for a Regular City Council Meeting, one agenda and subsequent Notice of Cancellation for the RCRPD Commission meeting.

City Council Meetings
Council Meeting Date Agenda Items
August 4, 2025 Regular Meeting (Cancelled) N/A
August 18, 2025 Regular Meeting 11
September 2, 2025 Special Meeting 6
Totals 17
Consent Item 4b

City Clerk’s Office Key Duties May
Public Records Act Requests 4
General Information Requests 25 – 30 per day, average
Ordinances 0
Resolutions 0
Minutes Prepared 3
Notary Services Provided 1
Claims for Damages Filed 0
FPPC Filings: 0
Legal/Proof of Publications 1
Notices Posted (Public Hearing, Agenda, Ordinance, etc.) 4

RISK MANAGEMENT / HUMAN RESOURCES DIVISION
On September 4, 2025, staff met with representatives from NeoGov to participate in the kick-off meeting of “Perform”. It is a module for NeoGov that provides a database and tracking system for employee performance and evaluations. Staff will continue to meet weekly with NeoGov representatives to learn how Perform can be used and effectively implemented. Staff anticipate rolling out Perform for use in January 2026.

Risk Management
Risk staff held a Safety Committee meeting on September 10, 2025. Topics included discussion regarding budget annual check lists for regulatory compliance, standard operating procedures during unexpected visits from the California Occupational Health and Safety Authority (CalOSHA), utilizing OpenGov for citizen complaint forms and tracking and follow-up on two outstanding safety concerns. Staff have submitted a grant application for improved lighting and security cameras at City Hall and are awaiting approval. The emergency sheets for City vehicles have been updated.

Risk staff also attended a training for OpenGov on September 10, 2025, with the intent of using the application to process Special Event Permit Applications. Risk staff will continue to work collaboratively with other departments to learn processes to streamline the Special Event Application process We look forward to implementing this change and hope to streamline the process for user groups.

Human Resources
Human Resources staff continue to meet high demands for recruitment and hiring. Staff attended two (2) Liebert Cassidy Whitmore (LCW) courses August 13th and 14th. One was “Difficult Conversations”, which included tools to equip managers and employees with skills and strategies to navigate challenging conversations with confidence and professionalism. The second training, “Finding the Facts”, which included case studies to identify and learn to avoid potential pitfalls during investigations. The training provided tools like how to create an “investigation binder” to help document the investigation process and build an effective investigation plan.

Current Recruitments:

Community Development:

Building Inspector I/II: Recruitment open until filled, interviews continue to be scheduled as qualified applicants apply.

Consent Item 4b

Senior Planner: Recruitment closed. Candidate pending start date.

Parks and Recreation:

Park Maintenance Worker I: Two candidates selected and currently in the pre-employment stage.

Conference Center Worker: Recruitment closed and interviews complete, candidate declined.

Position to be re-opened.

Administrative Assistant II: Recruitment closed, candidate selected and currently onboarding.

Bus Driver I: Two candidates selected and currently in the pre-employment stage.

Police Department:

Police Officer: Recruitment open until filled, interviews continue to be scheduled as qualified applicants apply.

Police Officer Trainee: Recruitment open until filled, interviews continue to be scheduled as qualified applicants apply. Second interviews scheduled for September 18th.

Community Services Officer: Recruitment open until September 21st.

Kennel Attendant: Recruitment closed August 17th, interviews complete, candidate selected and currently in background.

Public Works:

Street Maintenance Worker II: Recruitment closed, candidate selected and currently in background.

Utility Worker II/III: Recruitment closed 8/30, candidates have been ranked and interviews are scheduled for September 17th.

Lead Vehicle and Equipment Mechanic: Recruitment open until September 21.

The City is always looking to recruit qualified staff for open positions. For more information about employment with the City of Fortuna, visit the City’s website www.friendlyfortuna.com, send email to the Deputy City Clerk at [email protected], or call 707-725-7600. We also encourage all interested applicants to create a user account on www.governmentjobs.com

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

Computer/Network
IT support staff continue to work collaboratively with Nylex to meet the City’s ongoing technical needs.

RECOMMENDED COUNCIL ACTION:

Receive Administrative Monthly Report. Consent Agenda vote.

Consent Calendar Item 4d

STAFF REPORT
City Council Consent Item
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Finance Department Monthly Report
STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

Sales Tax Revenue:

The City received sales tax revenue reports for the period of January through March 2025 from the City’s sales tax consultant HdL. Sales tax increased 0.7% as compared to the same time period last year. For comparison purposes the State was up just 0.3% which demonstrates a macro economic issue pushing sales tax revenue down not just in Fortuna but statewide. Additional information on Q1 2025 sales tax can be found in the Newsletter attached to this staff report.

Updated revenue projections show the City coming in below (approximately $60,000) our budgeted amount of $2,200,000 for FY 2024-25. The updated revenue estimate would represent the 2nd lowest over the last 5 fiscal years sales tax receipts. On the positive side the City budgeted conservatively and built in macro-economic events within the FY 2025-26 budget estimate of $2,168,500 so no immediate action is needed.

Fiscal Year 2024-25 Financial Statement Audit:

July 1 signaled the start of a new fiscal year for the City. As such, staff are working on closing the previous fiscal year and preparing for the City’s annual financial statement audit. The Cities auditor will be Michael O’Connor from O’Connor and Company who also performed last year’s audit for the City. Michael and his staff are planning to come on site for a week to conduct interim audit work during the month of October.

Finance staff will be preparing for this interim audit work by preparing the necessary reconciliations, reports, adjustments and backup information that is required during the audit process. Having these documents ready prior to the auditors’ arrival has provided for a smooth audit process in past years.

Consent Calendar Item 4d

Measure E Update:

The Measure E committee’s next regularly scheduled meeting is set for September 16, 2025 at 5:30pm. The primary purpose of this meeting will be for Staff to review with the Committee the list of Measure E funded projects that were included in the Council Adopted Budget for fiscal year 2025-26.

List of Measure E items funded this month:
• (2) Police Detective Positions
• Police Community Services Officer Position
• Police Records Clerk Position
• Parks and Recreation Director Position
• Recreation Program Supervisor Position
• Transit Trips to Eureka for Seniors
• PT Code Compliance Officer Position
• K-9 Program
• Encampment Outreach and Cleanup Services
• Storm Drain Maintenance Projects
• Street Maintenance Projects
An activity log displaying important Finance data is attached for informational purposes.

RECOMMENDED COUNCIL ACTION:

Receive Finance Department Monthly Report. Consent Agenda vote.

ATTACHMENTS:
• Finance Staff Activity Log for August 2025
• Q1 2025 Sales Tax Newsletter
City of Fortuna
Finance Department
Fiscal Year 2025/26
Finance Department March April May June July August
Activity Log 2025 2025 2025 2025 2025 2025
Payroll Checks Issued: 207 197 200 256 323 307
Accounts Payable Checks Issued: 236 229 262 211 280 194 Number of Invoices Processed: 496 439 496 436 517 401
CDBG Loan Payments/Payoff: 0 0 0 0 0 0
Number of Telephone Calls: 973 1088 1250 1191 1374 1112 Avg Daily 49 49 60 60 72 70
Daily Walk-in Customers
Utility 535 570 611 566 657 494
Other 138 138 167 147 213 128
Total: 673 708 778 713 870 622
Average Daily Walk-in Customers 34 32 37 36 46 39
Monthly Bills 4628 4616 4622 4622 4616 4616
Reminder Notices 525 425 490 508 470 439
Shut Off Notices Mailed 317 264 249 293 291 292
Shut Offs 24 34 25 11 20 24
Ebills - Bills sent via email 652 711 1120 1515 1572 1636 Utility Bills paid online 1519 1461 1599 2111 1735 1599 % of Utility bills paid in person 12% 12% 13% 12% 14% 11% Public Works Calls Dispatched: 94 105 121 109 134 92
Avg Service Calls 109.2
Utility Billing Aging Report Total Bal Current 30 Days 60 Days 90 Days $ 963,908 $ 730,775 $ 154,521 $ 30,233 $ 48,379

75.8% 16.0% 3.1% 5.0%
76%
16%
3% 5%
Utility Accounts Aging
Current
30 Days
60 Days
90 Days
www.hdlcompanies.com | 888.861.0220
Q1 2024*
Q1 2025*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity County
and State
Pools
Fuel and
Service
Stations
Restaurants
and
Hotels
Business
and
Industry
Building
and
Construction
Autos
and
Transportation
Food
and
Drugs
General
Consumer
Goods
CITY OF FORTUNA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Summer 2025
Ace Hardware & Garden
Cigarette Payless
Dollar General
Eel River Brewing
Forbusco Lumber
Fortuna Chevron
Fortuna Liquors
Friesen Design Build
Grocery Outlet
Hummel Tire & Wheel
Les Schwab Tire Center
McDonald’s
Mercer Fraser
O’Reilly Auto Parts
Peterson Tractor
Ray’s Quality Cars
Safeway
Sequoia Gas
Shell
Sunbelt Rentals
Tractor Supply
Valley Pacific Petroleum
Services
Village Sport & Cycle
Walgreens
Wyckoff Plumbing

SALES TAX UPDATE

CITY OF FORTUNA
1Q 2025 (JANUARY - MARCH)
Fortuna’s receipts from January through
March were 1.5% below the first sales
period in 2024. Excluding reporting
aberrations, actual sales were up 0.7%.

State-county pools the City’s largest
income classification enjoyed strong
results with an 8.2% return as several
businesses in the pools performed well.

Service stations had modest returns at
the pumps this quarter while gas prices
remained stable.

Building-construction profits were
encouraging, as contractors saw demand
for their services from commercial
investors.

The autos-transportation category had
negative revenues from automotive
supply stores as car owners choose
to delay servicing their vehicles.

Furthermore, the food-drug category
saw meager proceeds at convenience
stores as shoppers looked to discount
stores for better bargains. Likewise, the
restaurants-hotels group experienced
soft gross receipts at quick service
establishments primarily due to higher
menu prices businesses implemented.

Measure E, the voter approved
transaction tax had positive collections
with returns of 4.6%.

Net of aberrations, taxable sales for all
of Humboldt County declined 1.1% over
the comparable time period; the Far
North region was flat.

TOTAL:

4.6%
$437,364
Measure E
TOTAL: $ 476,938

0.7% -1.1% 0.3%

COUNTY STATE

FORTUNA
1Q2025

TOP NON-CONFIDENTIAL BUSINESS TYPES
Q1 '25
Fortuna
Business Type Change Change Change
County HdL State
Service Stations 53,305 7.3% -1.0% -5.8%
Casual Dining 38,496 0.4% -3.8% 1.3%
Automotive Supply Stores 26,753 -2.0% 5.9% -0.4%
Quick-Service Restaurants 21,995 -3.2% 5.3% -0.9%
Contractors 18,723 9.1% 13.2% 1.2%
Auto Repair Shops 13,096 0.7% 3.6% -4.9%
Electronics/Appliance Stores 11,244 4.7% -0.1% -0.6%
Convenience Stores/Liquor 9,011 -6.9% -5.8% -2.2%
Second-Hand Stores 1,498 -29.0% -7.5% -3.8%
Government/Social Org. 308 -15.0% -34.7% 31.0%
*Allocation aberrations have been adjusted to reflect sales activity

REVENUE BY BUSINESS GROUP
Fortuna This Quarter*
23%
Pools
13%
Restaurants
10%
Autos/Trans.
11%
Building
12%
Bus./Ind.
8%
Cons.Goods
10%
Food/Drug
13%
Fuel
*ADJUSTED FOR

ECONOMIC DATA
1Q 2025 CITY OF FORTUNA SALES TAX UPDATE

STATEWIDE RESULTS
California’s local one-cent sales and use
tax receipts for January through March
2025 increased by 0.34% compared to the
same quarter in 2024, after adjusting for
accounting anomalies. While this modest
growth may signal the end of an eightquarter decline, it could be temporary, as the broader economy remains on the edge
between recovery and further slowdown.

The first quarter is traditionally the lowest
sales tax-generating period of the year,
often influenced by seasonal weather and
post-holiday consumer behavior.

Notably, the autos-transportation and
building-construction sectors—both of
which had been dragging down statewide
results over the past two years—showed
the strongest rebounds this quarter. In the
autos sector, used car sales and leasing
activity led the recovery. Consumers are
increasingly opting for more affordable
vehicles and shorter-term commitments,
moving away from high-end purchases. In
construction, pent-up demand for repairs
and improvements, especially in weatheraffected and wildfire-damaged areas like Southern California, drove strong sales for
building material suppliers.

Other segments generating modest growth
included business-industry and countywide
use tax pools, largely due to continued
strength in online sales. Sales of goods
already in California before purchase
are reported under business-industry
fulfillment centers. Goods shipped from
outside the state are reported under county
pools, based on the destination of the outof-state shipment. Online shopping remains a preferred option for value-conscious
consumers, contributing significantly to tax
receipts in these categories.

Calendar year 2024 saw a decline in fuelrelated tax receipts due to lower global crude oil prices—a trend that continued into 1Q
2025. Fuel-related returns dropped by 5%.

This decline also affected general consumer
goods, as large retailers that sell fuel typically
report all sales under a single taxpayer ID.

As a result, brick-and-mortar merchants
such as post-holiday family apparel stores,
winter sporting goods vendors and closures
of variety stores contributed to weaker
performance.

Although food-drugs is the smallest of the
eight tax groupings, it was significant that
cannabis returns continued a downturn
trend that has been ongoing for over two
years. Bankruptcies, customer shopping
alternatives and oversaturation of retail
footprint diminished taxes coming from drug
stores.

As 2025 begins, sales tax returns remain
modest, reflecting broader economic
volatility. Key factors influencing our outlook
include: ongoing national tariff and trade
negotiations and decisions on the federal
funds rate - which directly affect consumer
interest rates. Recent Middle East conflicts,
which temporarily spiked crude oil prices
and threatened local gas prices during the
summer, will be a short-term concern. In
summary, “uncertainty” remains the most
accurate descriptor of California’s current
and future economic climate.

Consent Item 4e

STAFF REPORT
City Council Consent Item
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Kaylyn Stainbrook, Parks and Recreation Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Parks and Recreation Department Monthly Report for August 2025 STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

Parks Maintenance
 Recruitments in progress: Three part-time Parks Maintenance Worker I positions  First Aid and CPR Training completed at Fortuna Volunteer Fire Department  Park/Facility Maintenance Tasks Completed (done in addition to several routine items):
o Removed hazardous tree branch at Newburg Park
o Removed hazardous tree at Rohner Park Rec Hall
o Repaired plumbing issue at River Lodge
o Refinished Rohner Park bench and installed memorial plaque o Delivered picnic tables and trash/recycle receptacles for Vintage Market o Completed landscaping at Chamber of Commerce
o Summer Fun waterslide setup and tear down
o Repaired irrigation issue at Fortuna Library
o Placed “Special Event” signs for Soccer Saturday at Newburg Park o Removed three beehives in Rohner Park
o Completed repairs to the Roller-Skating Trainers/Walkers o Hops in Humboldt prep, event maintenance, and clean-up: 54 park staff hours
o Fire Fest prep, event maintenance, and clean-up: 5 park staff hours Rentals
There were four Monday Club rentals, one Firemen’s Pavilion rental, six cookshack/picnic area rentals, and one Rec Hall rental. Hops in Humboldt rented Rohner Park for a Special Event. Fire Fest, another special event, took place at Newburg Park. Additionally, several user groups, such as the Genealogical Society, HOPS in Humboldt, Fortuna Garden Club, Eel River Little League, Eel River Youth Soccer League, Emerald Football Club, and Results Fit Camp, continue to use our indoor and outdoor facilities on a recurring basis.

Consent Item 4e

Community Service
In collaboration with the Humboldt County Probation Department, one Community Service Worker helped with park maintenance, serving a total of 4 work hours this month.

Recreation
 Summer Fun ended on August 15th. Attendance was consistent throughout the end of camp with 50-55 campers per week.
 Drop-In Volleyball and Basketball have been paused for summer months due to low attendance. It has been announced that they will resume in September.  The Coed Adult Softball League continues.
 Public Skate has resumed following the month of July. To encourage attendance, staff have been promoting theme nights every Saturday.
 Year-Round Recreation Programs (Firemen’s Pavilion) Schedules:
o Drop-in Pickleball: Monday, Wednesday, and Friday mornings, 9:00am – 12:00pm and Sunday evening, 7:00pm-10pm
o Drop-in Basketball: Program paused for summer; Will resume in September. o Drop-in Volleyball: Program paused for summer; Will resume in September. o Public Skate: Fri/Sat 6:30pm – 9:30pm, Sun 1:30pm – 4:30pm o Private Parties: Fri afternoon, Sat morning/afternoon, Sun morning (Varies) Fortuna Transit
 The Eureka Shopping Trip was cancelled for the month of August, due to only having one drive on Thursdays. However, Eureka Medical Trips were still prioritized.  This month 10 new riders signed up for the transit service.

Fortuna
Transit
August
2024
August
2025
YTD August
2024-June
2025
YTD July
2025-June
2026
Total
Passengers 1100 420 2153 696
Total Miles 3049 1553 5941 2628
Service Miles 2853 1455 5561 2444
Total Hours
Worked 338.75 187.25 671.50 301.75
Service Hours
Worked 300.50 174.75 596.25 282
August
Year-Round
Recreation
Program Totals
Drop-in
Pickleball
Drop-in
Basketball
Drop-in
Volleyball
Public
Skate
Private
Skate
Parties
Total Sessions 16 0 0 14 9
Total Participants 346 0 0 255 178
Consent Item 4e

Fortuna Depot Museum
 As of the beginning of June, the museum is open 7 days a week (Monday through Saturday 12:00 - 4:30 and Sunday 1:00 - 5:00). This is the first summer that the museum has been open 7 days a week since 2019. Starting in September, the museums hours will return to Thursday through Saturday 12:00pm – 4:30pm and Sunday 1:00pm – 5:00pm.
 August’s visitation total at the Fortuna Depot Museum was 372 people. This is in the middle range for our recent years’ August visitation totals. (Prior to 2020, the museum was open 7 days a week in June, July and August; from 2020 through 2024 there have been various schedules of reduced opening hours during the summer months.) Recent years’ August visitor totals were: 2024: 239, 2023: 209, 2022: 250, 2021: 186, 2020:
closed, 2019: 485, 2018: 378, 2017: 477, 2016: 393, 2015: 419.  In August 2025 we welcomed California visitors from Arcata, Bakersfield, Bayside, Blocksburg, Blue Lake, Blythe, Campbell, Carlotta, Chico, Clovis, Dogtown, Eureka, Ferndale, Folsom, Fort Bragg, Fortuna, Honeydew, Hydesville, Laguna Beach, Lakeport, Lucerne, Martinez, McKinleyville, Miranda, Mountain View, Oxnard, Petaluma, Rancho Cucamonga, Redding, Rio Dell, Sacramento, San Diego, Santa Ana, Santa Rosa, Turlock, Whitethorn, Willits and Yuba City. We also welcomed out-of-state visitors from Alabama, Hawaii, Florida, Massachusetts, Nevada, New Mexico, Oregon and Washington, as well as overseas visitors from Berlin, Germany.  Our August visitor total included 18 attendees at the California League of Cities meeting held August 22 in Fortuna, who attended a reception and tour of the Depot Museum as one of their meeting activities (which also included a visit and tour of Clendenen’s Apple Orchard).
 Updates continue every 2-3 weeks to the exhibit “Now Playing! (100 Years Ago) at the Fortuna Theatre,” so that museum visitors can learn about the movies which were playing in Fortuna exactly 100 years ago to the day. A new exhibit installed in July highlights the July 19, 2025, visit to Fortuna by state representatives of the Daughters of the American Revolution, who dedicated a plaque at the grave of Hester Snider (1797—1887), a daughter of an American soldier in the American Revolution.

Consent Item 4e

River Lodge
 Notable events in August include:
o League of California Cities Meeting
o Two Private Weddings
o Hops in Humboldt/Wendt Chamber Mixer
Aug 2024 Aug 2025 Fiscal YTD
25 - 26
Total Events
8 12 20
Total Attendees 1215 705 1302
Total Days
Occupied 13 12 25
RECOMMENDED COUNCIL ACTION:

Receive Parks and Recreation Department Monthly Report. Consent Agenda vote.

Consent Item 4f

STAFF REPORT
City Council Consent Item
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Matthew A. Eberhardt, Interim Chief of Police
THROUGH: Amy Nilsen, City Manager
SUBJECT: Police Department Monthly Report for August 2025 STAFF RECOMMENDATION:

Receive report as an informational item.

Patrol Statistics:

During the month of August 2025, the Fortuna Police handled 1,349 calls for service. 49 arrests were made including 9 felony arrests and 40 misdemeanor arrests. A total of 76 citations were issued for traffic offenses or other miscellaneous violations. Crime statistics and information on calls for service are available at forpd.crimegraphics.com.

Staffing:
• Recruitment Update: A lateral retired annuitant reserve law enforcement officer with local area experience is progressing through the pre-employment background investigation process.
• Two Sworn Police Officers are progressing through the Field Training Program. • Staffing and Recruitment: The department currently has three vacant sworn officer positions and is actively recruiting to fill these positions. • Operational Impact: Due to ongoing training requirements for Police Officer in the Field Training Program, existing sworn officer vacancies, and one employee on unanticipated leave, the department is operating with six fewer sworn patrol officers than authorized staffing levels. In response to this significant shortfall, the “staffing crisis” and mandatory weekly overtime for sworn personnel remains in effect.
• We are recruiting for Two non-sworn positions, a part-time Community Services Officer position and a part-time Kennel Attendant position.

Enforcement/Community Engagement:
• Fortuna Police Department Officers and K9 Team participated in downtown’s First Friday event.
• Officer arrested an adult female illegally in possession of a large canister of Nitrous Oxide.

The use of Nitrous Oxide and its availability in our community continues to be a concern.

RECOMMENDED COUNCIL ACTION:

Receive Police Department Monthly Report. Consent Agenda vote.

Consent Item 4g

STAFF REPORT
City Council Consent Item
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Brian Issa, Public Works Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Public Works/Engineering Department Monthly Report STAFF RECOMMENDATION:

Receive report as an informational item.

EXECUTIVE SUMMARY:

The Public Works Director engaged in the following activities during the month of August. 34-hour Work Week
• Staff have developed performance metrics for the City Manager. These include data from before and after the 34hr week went into effect.

NPDES Compliance
• Staff continue to work with Jacobs Engineering on design of the new aeration basins currently proceeding toward 60% design. Much of the work in August was focused on SCADA and impacts to the dog kennel area. Staff are moving to frontload the SCADA portion of the project to avoid costly complications during construction and startup and are currently awaiting a scope and fee from Jacobs for this task. Close attention is being paid to cleanup of the existing SCADA system so that we have a fresh system from top to bottom to avoid problems down the line.
• Proposed basin plan amendment to allow continued use of the percolation ponds is on track.
• The City responded to a notice of intent to file suit by Riverwatch, providing them with extensive data.

Grants and Funding
Upcoming:
• Rural and Tribal Assistance (RTA). PAED for 12th Street (West Side) or possibly Ross Hill/Kenmar.
• Staff continue to work through the STIP process with a focus on the interchanges and Ross Hill.

Kenmar Interchange
• Staff have been working with GHD and the owner of the Mill Site to look at the impacts of development of the southern portion of the site on traffic at Kenmar and Ross Hill. The Consent Item 4g

City obtained a scope and fee from GHD for a traffic impact analysis and has identified grant dollars for a portion of the project.
• GHD continues to work with CalTrans and the City on designs for the Kenmar interchange. Recent discussions have focused on aesthetics and treatments for roundabouts and retaining walls. This is a larger discussion that needs to be had in the context of the 12th Street interchange and other gateway planning and will come back to Council in the near future.

Well Development
• Staff continue to work with GHD and SHN on development of well 5B including value engineering of designs and necessary geotechnical work.

Permitting Software
• Due to previous experience with the software at another agency, the PW Director has been heavily involved in the maintenance and revision of the City’s permitting software (OpenGov). We continue to explore ways to make this system more accurate and useful to both staff and the public.

Utilities Division
Water Distribution System
• The utilities crew read meters, changed out 10 dead meters, and completed the meter worksheet.
• Backflow testing is ongoing.
• The utilities crew upgraded 10 single port radios, and 2 dual port radios. • Hydrant flushing continues, however with short staffing levels this will take longer than usual to complete.
• The utilities crew did not install any new water services this month. • On-call personnel responded to 5 after-hours callouts • The utilities crew completed 24 shutoffs for nonpayment • The Utilities crew flushed 13 hydrants, repaired three water leaks, and charged/flushed water on the new main on Carson Woods Road, the following table shows the details:

Table 1. Water leaks in August 2025
Date Location Pipe
Information
Estimated
Leak Rate
(Gallons per
Minute)
Leak
Duration
Total
Estimate
Leak
Volume
(Gallons)
8/11/25 1008 Meadow Ln 1” CTS (thin) 5 18D 129,600
8/12/25 2334 Acacia Dr 2.5” PVC 1 43D 61,920
8/26/25 1423 Sunny Heights ¾” CTS(thin) 20 14D 403,200
8/1-8/31 Hydrant Flushing N/A N/A N/A 187,925
8/13-8/28 Carson Woods Rd
water main
N/A N/A N/A 12,878
TOTAL: 795,523
Consent Item 4g

Wastewater Collection System
• There was one Sewer Plug that resulted in an SSO, it was under 500 gal and therefore must be reported to the state within 30 days.
• The utilities crew cleaned 4,000ft of sewer lines.
• On-call personnel responded to 1 after-hours callout. • The utilities division completed a list of FOG (Fats, Oils, and Greases) producing businesses which will be inspected annually for discharge compliance. A plan for training and inspection procedures will be developed.

Service Call Summary
• Underground Service Alert (USA): There were zero miss-marked USA’s. • The utilities division completed a total of 82 Service calls. Figure 1 shows the breakdown by type.

Figure 1: Service call breakdown
Miscellaneous Tasks
• The Utilities division continues to add to our GIS database, focusing on water meter and radio transmitter inventory to better assist our radio upgrade CIP Water Treatment/Wastewater Division- Chief Plant Operator Wastewater Treatment
Table 2. August wastewater plant effluent flows for the past five years in Million Gallons (MG) and Million Gallons per Day (MGD).
23 17
24 28

CONNECTS

OCCUPANT CHANGES

DISCONNECTS

SERVICE ACTIONS
0 5 10 15 20 25 30
Service Calls By Type
Service Calls By Type
Year 2021 2022 2023 2024 2025
Total Monthly Flow, MG 26.630 26.560 25.750 21.880 19.570 Maximum Daily Flow, MGD 1.000 1.000 1.000 1.010 0.750
Average Monthly Flow, MGD 0.859 0.857 0.831 0.706 0.631 Consent Item 4g

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

Wastewater Events & Maintenance Tasks Completed:
• Staff spent considerable time draining the digester and setting up an aerobic system in preparation for the repairs to be made to the digester. • Staff tested approximately 700 yards of compost, all tests were passed, we will be conducting a giveaway in mid September.
• Staff replaced motor bearings and belts on bio-filter fan #1. • Staff with the assistance of Jacobs Engineering made repairs to the SCADA disinfection program.

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

Figure 3. August potable water production for the past five years in Million Gallons (MG). 0 5
10 15
20 25
30 0

0.2 0.4

0.6 0.8
1 1.2
2021 2022 2023 2024 2025
Total Flow, MG
Flow, MGD
Total Monthly Flow, MG MAX Daily Flow, MGD AVG Daily Flow, MGD 0 0.5
1 1.5
2 2.5
34 36
38 40
42 44
46 2021 2022 2023 2024 2025
Flow, MGD
Production, MG
Production Max Daily Avg Daily
Year 2021 2022 2023 2024 2025
Total Production, MG 44.914 42.600 44.387 38.434 42.378 Maximum Daily, MG 1.989 1.735 1.893 1.678 1.786
Average Daily, MG 1.449 1.374 1.432 1.239 1.367
Consent Item 4g

General Services and Streets - General Services Superintendent The following is a list of scheduled assignments completed by the General Services staff in August:
• Staff replaced and repaired water trenches with hot mix asphalt. • Staff prepared and implemented traffic control measures for First Friday’s and Fortuna Vintage Market.
• Staff continue to do roadside mowing, weed eating, and sniping. Staff weed eat the tall vegetation on the railroad track between 8th and 12th Street. • Staff painted yellow school zone traffic markings prior to the High and Middle schools starting. Staff painted white stops, stop bars, and crosswalks traffic markings. Staff started to touch up the faded red curbs.
• Staff assisted the Wastewater Treatment Plant staff with digging pits in the compost piles for testing.
• Staff trimmed and removed unwanted species of plants in the LID basins on 12th Street. • Staff assisted Park’s department in chipping brush. Staff also removed low hanging tree limbs along the City’s right of way.
• Staff picked up roadside litter and trash along various streets. • Staff replaced boards that were damaged on the Kenmar Welcome sign from a large branch.

Staff also repaired the blue mosaic art pieces that had fallen off. • Staff troubleshot and repaired streets lights.
• Staff replaced a cut out section on a culvert diverter. • Staff removed the moss off the roof of two buildings at the Corporation Yard. • Staff installed two new stop signs on Wood Street and College Avenue. • Staff removed potholes in an alley.
• In addition to the special tasks noted above, staff also engaged in the following regular routine maintenance activities including USA’s, street sweeping, recycling and trash management, collect batteries at City Hall, road maintenance, Dog Park maintenance, vegetation management including sniping of curbs, and safety training and inspections.

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

RECOMMENDED COUNCIL ACTION:

Receive Public Works Department Monthly Report. Consent Agenda vote.

Consent Item 4h

STAFF REPORT
Consent Agenda Item
DATE: September 15, 2025
TO: Honorable Mayor and City Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Report of Disbursements for September 3rd, and September 11, 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:

September 3, 2025 $ 92, 578.10
September 11, 2025 $ 32,163.10
RECOMMENDED COUNCIL ACTION:

Informational Item. Receive report by Consent Agenda vote.

ATTACHMENTS:
• Disbursements Detail Report for September 3, 2025
• Disbursements Detail Report for September 11, 2025
Amount
83039 09/03/2025 HIGHWAY SPECIALTY CO INC 254103 Traffic Paint - Streets 781.9 9/3/2025 4:07:55 PM Page 1 of 7
83036 09/03/2025 GROCERY OUTLET 081925 Catering Supplies - River Lodge 212.55 83037 09/03/2025 HDL, COREN & CONE SIN053905 24-25 ACFR Stat Package 795 83038 09/03/2025 HELIX LABORATORIES INC 91612 Alka Mag Supply FY 25/26 7829.96 83034 09/03/2025 GEARHART, ROBERT 090225 Per Diem 9.15 - 9.16 (Wastewater Exam) 91 83035 09/03/2025 GRAINGER 9614941582 Fire Hose/Paint Marker - WWTP 96.44 83035 09/03/2025 GRAINGER 9615094399 PVC Fittings - WWTP 162.17 83033 09/03/2025 FREEDOM FUEL 1010971 Equipment Fuel 31.05 83033 09/03/2025 FREEDOM FUEL 1010977 Equipment Fuel 35 83033 09/03/2025 FREEDOM FUEL 1010999 Equipment Fuel 55.1 83032 09/03/2025 FORTUNA ACE HARDWARE 397098 Paint Supplies - Streets 24.91 83032 09/03/2025 FORTUNA ACE HARDWARE 397115 Moss-out Liquid/Hose/Mask Tape - Utilities 51.43 83033 09/03/2025 FREEDOM FUEL 1010922 Equipment Fuel 17.66 83032 09/03/2025 FORTUNA ACE HARDWARE 396988 Carbon Monoxide Alarm - PD 54.74 83032 09/03/2025 FORTUNA ACE HARDWARE 397064 Batteries/Nylon Tee - General Services 19.25 83032 09/03/2025 FORTUNA ACE HARDWARE 397065 Garden Sprayer - General Services 21.89 83032 09/03/2025 FORTUNA ACE HARDWARE 396955 Grout Sponge/Sand - General Services 47.26 83032 09/03/2025 FORTUNA ACE HARDWARE 396968 Aluminum Tape/Lever - City Hall 50.35 83032 09/03/2025 FORTUNA ACE HARDWARE 396977 Marine/RV Hose - Utilities 131.37 83031 09/03/2025 FORBUSCO LUMBER 29816 Concrete Mix - Streets -3.83 83032 09/03/2025 FORTUNA ACE HARDWARE 394695 Plumbing Supplies - WWPT 38.3 83032 09/03/2025 FORTUNA ACE HARDWARE 396900 Sealant/Gorilla Glue - General Services 30.64 83031 09/03/2025 FORBUSCO LUMBER 28368 Building Repair/Maint - Parks -20.86 83031 09/03/2025 FORBUSCO LUMBER 28368 Building Repair/Maint - Parks 301.1 83031 09/03/2025 FORBUSCO LUMBER 29816 Concrete Mix - Streets 55.15 83030 09/03/2025 EUREKA OXYGEN CO DM25082126 Cylinder Rentals FY 25/26 36.94 83030 09/03/2025 EUREKA OXYGEN CO DM25082126 Cylinder Rentals FY 25/26 36.94 83030 09/03/2025 EUREKA OXYGEN CO DM25082126 Cylinder Rentals FY 25/26 36.94 83029 09/03/2025 DEPARTMENT OF JUSTICE 835375 July Livescan Services 825 83029 09/03/2025 DEPARTMENT OF JUSTICE 840766 July BAC Analysis Service 210 83030 09/03/2025 EUREKA OXYGEN CO DM25082126 Cylinder Rentals FY 25/26 36.92 83027 09/03/2025 COUNTY OF HUMBOLDT 083125 August Parking Fees Collected 14 83027 09/03/2025 COUNTY OF HUMBOLDT 083125 August Parking Fees Collected 30 83028 09/03/2025 CUMMINS Y7-250811805 V-Ribbed Belt - WWTP 101.57 83027 09/03/2025 COUNTY OF HUMBOLDT 063025 June Parking Fees Collected 67.5 83027 09/03/2025 COUNTY OF HUMBOLDT 073125 July Parking Fees Collected 35 83027 09/03/2025 COUNTY OF HUMBOLDT 073125 July Parking Fees Collected 75 83026 09/03/2025 CITY OF FERNDALE 073125 July Parking Fees Collected 25.35 83026 09/03/2025 CITY OF FERNDALE 113024 November Parking Fees Collected 25.35 83027 09/03/2025 COUNTY OF HUMBOLDT 063025 June Parking Fees Collected 31.5 83026 09/03/2025 CITY OF FERNDALE 013125 January Parking Fees Collected 85.8 83026 09/03/2025 CITY OF FERNDALE 022825 February Parking Fees Collected 82.55 83026 09/03/2025 CITY OF FERNDALE 063025 June Parking Fees Collected 79.3 83025 09/03/2025 BODYWORKS 090125 September Gym Memberships 20 83025 09/03/2025 BODYWORKS 090125 September Gym Memberships 20 83025 09/03/2025 BODYWORKS 090125 September Gym Memberships 20 83025 09/03/2025 BODYWORKS 090125 September Gym Memberships 20 83025 09/03/2025 BODYWORKS 090125 September Gym Memberships 60 83025 09/03/2025 BODYWORKS 090125 September Gym Memberships 60 83024 09/03/2025 ADVANCED SECURITY SYSTEM 744880 Lab Security Service FY 25/26 106.5 83024 09/03/2025 ADVANCED SECURITY SYSTEM 744929 Wells Building Security Service FY 25/26 151.5 83025 09/03/2025 BODYWORKS 090125 September Gym Memberships 20 Expense Approval Report
CITY OF FORTUNA By (None)
Payment Dates 9/1/2025 - 9/30/2025
Payment Number Payment Date Vendor Name Payable Number Description (Item) 83023 09/01/2025 POSTMASTER 090125 Utility Billing Postage 8.31.25 928.58 83023 09/01/2025 POSTMASTER 090125 Utility Billing Postage 8.31.25 928.58 Amount
83055 09/03/2025 OWEN EQUIPMENT SALES 68318 Sweeper Broom - Streets 967.53 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 2429.23 9/3/2025 4:07:55 PM Page 2 of 7
83054 09/03/2025 O'REILLY AUTOMOTIVE STORE 329074 Attachment Tape - PD 5.99 83054 09/03/2025 O'REILLY AUTOMOTIVE STORE 329877 Battery - PD 256.13 83054 09/03/2025 O'REILLY AUTOMOTIVE STORE 329954 O'Reilly Def - Vacon 43.76 83054 09/03/2025 O'REILLY AUTOMOTIVE STORE 325505 Core Return - PD -22 83054 09/03/2025 O'REILLY AUTOMOTIVE STORE 326898 Core Return - PD -22 83054 09/03/2025 O'REILLY AUTOMOTIVE STORE 329067 Ignition Lock Cylinder - General Services 80.12 83053 09/03/2025 OPTIMUM SEPT25CH CH/PD/PW Wifi Service FY 25/26 58.34 83053 09/03/2025 OPTIMUM SEPT25PO Park/Rodeo Grounds Wifi Service FY 25/26 235.87 83053 09/03/2025 OPTIMUM SEPT25RL River Lodge Wifi Service Fy 25/26 211.48 83053 09/03/2025 OPTIMUM SEPT25CH CH/PD/PW Wifi Service FY 25/26 58.33 83053 09/03/2025 OPTIMUM SEPT25CH CH/PD/PW Wifi Service FY 25/26 58.34 83053 09/03/2025 OPTIMUM SEPT25CH CH/PD/PW Wifi Service FY 25/26 58.34 83052 09/03/2025 NORTH COAST JOURNAL 2025142213 Senior Planner Recruitment Advertising 146 83052 09/03/2025 NORTH COAST JOURNAL 2025142215 Admin Assistant II Recruitment Advertising 146 83052 09/03/2025 NORTH COAST JOURNAL 2025142979 Public Notice Lot Line Adjustment 172.8 83051 09/03/2025 NORMAN'S DRY CLEANERS 25233-510-A River Lodge Linen Service 30 83052 09/03/2025 NORTH COAST JOURNAL 2025142207 Building Inspector Recruitment Advertising 146 83052 09/03/2025 NORTH COAST JOURNAL 2025142211 Conf Center Worker Recruitment Advertising 129 83048 09/03/2025 MISSION LINEN INDUS SERV 524479049 Parks/Rink Linen Service 99.89 83049 09/03/2025 NAPA AUTO PARTS FORTUNA 87567 V-belts/Filters - WWTP 257.69 83050 09/03/2025 NASH, ROSS 25-108 Inspection/Plan Review Service 8.16 - 8.31 2325 83048 09/03/2025 MISSION LINEN INDUS SERV 524479039 Corp Yard Linen Service 63.83 83048 09/03/2025 MISSION LINEN INDUS SERV 524479039 Corp Yard Linen Service 57.11 83048 09/03/2025 MISSION LINEN INDUS SERV 524479040 Wastewater Linen Servuce 97.85 83048 09/03/2025 MISSION LINEN INDUS SERV 524454562 Janitorial Supplies - CH/PD/PW 54.75 83048 09/03/2025 MISSION LINEN INDUS SERV 524461704 River Lodge Linen Service 412.17 83048 09/03/2025 MISSION LINEN INDUS SERV 524461704 River Lodge Linen Service 29.47 83048 09/03/2025 MISSION LINEN INDUS SERV 524454562 Janitorial Supplies - CH/PD/PW 54.75 83048 09/03/2025 MISSION LINEN INDUS SERV 524454562 Janitorial Supplies - CH/PD/PW 109.5 83048 09/03/2025 MISSION LINEN INDUS SERV 524454562 Janitorial Supplies - CH/PD/PW 54.75 83048 09/03/2025 MISSION LINEN INDUS SERV 524450382 Janitorial Supplies - CH/CDD/MC/Parks/PD/Library 48.86 83048 09/03/2025 MISSION LINEN INDUS SERV 524450382 Janitorial Supplies - CH/CDD/MC/Parks/PD/Library 151.09 83048 09/03/2025 MISSION LINEN INDUS SERV 524450382 Janitorial Supplies - CH/CDD/MC/Parks/PD/Library 102.22 83048 09/03/2025 MISSION LINEN INDUS SERV 524450382 Janitorial Supplies - CH/CDD/MC/Parks/PD/Library 275.52 83048 09/03/2025 MISSION LINEN INDUS SERV 524450382 Janitorial Supplies - CH/CDD/MC/Parks/PD/Library 222.15 83048 09/03/2025 MISSION LINEN INDUS SERV 524450382 Janitorial Supplies - CH/CDD/MC/Parks/PD/Library 53.36 83048 09/03/2025 MISSION LINEN INDUS SERV 524437121 Corp Yard Linen Service 48.11 83048 09/03/2025 MISSION LINEN INDUS SERV 524437122 Wastewater Linen Service 102.62 83048 09/03/2025 MISSION LINEN INDUS SERV 524437131 Police Mat Cleaning Service FY 25/26 58.04 83048 09/03/2025 MISSION LINEN INDUS SERV 524418621 River Lodge Linen Service 29.47 83048 09/03/2025 MISSION LINEN INDUS SERV 524423965 Trash Can Liners - River Lodge 115.38 83048 09/03/2025 MISSION LINEN INDUS SERV 524437121 Corp Yard Linen Service 54.84 83046 09/03/2025 MICROBAC LABORATORIES INC 183812 Lab Testing 114 83047 09/03/2025 MIRANDA'S RESCUE 090125 Animal Rescue Services FY 25/26 800 83048 09/03/2025 MISSION LINEN INDUS SERV 524418621 River Lodge Linen Service 202.91 83046 09/03/2025 MICROBAC LABORATORIES INC 181783 Lab Testing 62 83046 09/03/2025 MICROBAC LABORATORIES INC 183782 Lab Testing 1166 83046 09/03/2025 MICROBAC LABORATORIES INC 183812 Lab Testing 328 83045 09/03/2025 MERCER FRASER COMPANY 116758 Aggregate Base - Utilities 174.32 83045 09/03/2025 MERCER FRASER COMPANY 116759 Cold Mix - Utilties 327.97 83045 09/03/2025 MERCER FRASER COMPANY 116759 Cold Mix - Utilties 327.98 83043 09/03/2025 KEENAN SUPPLY CO S014576778 Hymax Couplings - Utilities 759.9 83043 09/03/2025 KEENAN SUPPLY CO S014581035 Angle Balls Return - Utilities -827.48 83044 09/03/2025 MACLEOD, THOMAS 082725 Per Diem 9.3 (POST Supervisor) 23 83041 09/03/2025 INDEPENDENT BUSINESS FORM 44151 Requisition Books - Finance 794.87 83042 09/03/2025 JOHNSON, MIKE 082725 Cal Cities Meeting Expense Reimbursements 264.46 83043 09/03/2025 KEENAN SUPPLY CO S014565925 Hydrant Supplies - Utilities 150.8 Expense Approval Report Payment Dates: 9/1/2025 - 9/30/2025 Payment Number Payment Date Vendor Name Payable Number Description (Item) 83040 09/03/2025 HORIZON BUSINESS PRODUCTS 290526 Business License Colored Paper - Finance 16.41 Amount
83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 307.8 9/3/2025 4:07:55 PM Page 3 of 7
83069 09/03/2025 USABLUEBOOK INV00801110 Polycarb Tube - WWTP 320.97 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 67.62 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 4921.24 83069 09/03/2025 USABLUEBOOK INV00790775 Hydraulic Fluid - Utilities 896.56 83069 09/03/2025 USABLUEBOOK INV00794522 Ball Valves - WWTP 274.89 83069 09/03/2025 USABLUEBOOK INV00794793 Ball Valves - WWTP 123.68 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 38.64 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 144.91 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 144.91 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 19.32 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 38.64 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 86.95 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 154.57 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 270.52 83068 09/03/2025 UBEO BUSINESS SERVICES 4990026 Print Services FY 25/26 67.63 83067 09/03/2025 TRACTOR SUPPLY CREDIT PLA 2114693979 Animal Carrier - Kennel 63.5 83067 09/03/2025 TRACTOR SUPPLY CREDIT PLA 2114711456 Scotch-Brite Sponges - Kennel 4.37 83067 09/03/2025 TRACTOR SUPPLY CREDIT PLA 622756 Kennel Supplies 22.32 83065 09/03/2025 THATCHER COMPANY INC 2025250900918 Chlorine/Caustic Soda Deposit Refund -1825 83066 09/03/2025 THE PEOPLE OF NEW DIRECTIONS 4067 Encampment Clean-up Service 620 83067 09/03/2025 TRACTOR SUPPLY CREDIT PLA 2114613308 Animal Carrier - Kennel 60.21 83065 09/03/2025 THATCHER COMPANY INC 2025100900742 Sulfur Deposit Refund -5300 83065 09/03/2025 THATCHER COMPANY INC 2025250104586 Chlorine/Caustic Soda - WWTP 1825 83065 09/03/2025 THATCHER COMPANY INC 2025250104586 Chlorine/Caustic Soda - WWTP 6693.95 83063 09/03/2025 RON DUPRATT FORD 92750 Exhaust Repair Supplies - PD 3570.61 83063 09/03/2025 RON DUPRATT FORD 94334 Damper Assembly - WWTP 95.88 83064 09/03/2025 SPRINGVILLE SAFETY & SUPPLY 40384 Safety Vests - Utilities 23.82 83061 09/03/2025 RECOLOGY EEL RIVER 742633 Debris Disposal 128 83062 09/03/2025 RICHARDSON, RYAN 072225 Per Diem 9.8 - 9.12 (POST Supervisor Training) 471 83062 09/03/2025 RICHARDSON, RYAN 72225 Per Diem 9.15 - 9.19 (POST Supervisor Training) 471 83059 09/03/2025 QUENCH USA INC INV09507314 Parks Water System Service FY 25/26 42.71 83060 09/03/2025 RAY'S FOOD PLACE 1702826 Catering Supplies - River Lodge 107.73 83061 09/03/2025 RECOLOGY EEL RIVER 742594 Debris Disposal 35.2 83059 09/03/2025 QUENCH USA INC INV09494250 Public Works Water System FY 25/26 28.48 83059 09/03/2025 QUENCH USA INC INV09494250 Public Works Water System FY 25/26 28.47 83059 09/03/2025 QUENCH USA INC INV09494250 Public Works Water System FY 25/26 28.47 83057 09/03/2025 PLATT ELECTRIC SUPPLY 6N95339 Streetlight Maintenance Supplies 29.92 83058 09/03/2025 POSTMASTER 090325 Annual Bulk Mailing Fee - PI 14 185 83058 09/03/2025 POSTMASTER 090325 Annual Bulk Mailing Fee - PI 14 185 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08280527 59188610527 151.03 83057 09/03/2025 PLATT ELECTRIC SUPPLY 6N75124 Streetlight Maintenance Supplies 235.25 83057 09/03/2025 PLATT ELECTRIC SUPPLY 6N83636 Streetlight Maintenance Supplies 59.73 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08255284 40654195284 36.86 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08258481 42737528481 13.27 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08258568 41487528568 15.11 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08254197 34609744197 103.85 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08254490 91564484490 11.47 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08254560 74193064560 7.84 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08251921 41070861921 24.16 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08252987 61444662987 7.84 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08253322 79545763322 148.12 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 27144.23 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 1832.02 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 354.45 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 423.29 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 157.95 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 4422.32 Payment Number Payment Date Vendor Name Payable Number Description (Item) 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 278.56 83056 09/03/2025 PACIFIC GAS & ELECTRIC CO 08250845 46580260845 3249.99 Expense Approval Report Payment Dates: 9/1/2025 - 9/30/2025 Amount
83072 09/03/2025 WYCKOFF'S 182200 Pressure Gauge - Utilities 10.35 Grand Total: 92578.14
9/3/2025 4:07:55 PM Page 4 of 7
83072 09/03/2025 WYCKOFF'S 181617 Stainless Steel Gauge - Utilities 24.08 83072 09/03/2025 WYCKOFF'S 182126 Couplings/Gauge/Nipples - Utilities 105.47 83072 09/03/2025 WYCKOFF'S 182165 Brass Nipples - Utilities 31.73 83072 09/03/2025 WYCKOFF'S 181508 Hose/PVC Pipe - WWTP 78.61 83072 09/03/2025 WYCKOFF'S 181527 Brass Hose Adapter - Utilities 43.75 83072 09/03/2025 WYCKOFF'S 181615 Streetlight Maintenance Supplies 42.66 83072 09/03/2025 WYCKOFF'S 180319 Couplings/Bushings - Utilities 22.83 83072 09/03/2025 WYCKOFF'S 181027 Bathroom Faucet Repair Kit - River Lodge 32.14 83072 09/03/2025 WYCKOFF'S 181092 Plumbing Supplies - WWTP 192.7 83071 09/03/2025 VERIZON WIRELESS 6122006620 SCADA Messaging Service FY 25/26 5.02 83072 09/03/2025 WYCKOFF'S 180192 Couplings/PVC/Tee - WWTP 137.49 83072 09/03/2025 WYCKOFF'S 180243 Couplings - WWTP 9.84 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 2529.05 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 1107.08 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 1112.97 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 122.04 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 441.1 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 329.29 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 1299.71 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 628.31 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 112.92 Expense Approval Report Payment Dates: 9/1/2025 - 9/30/2025 Payment Number Payment Date Vendor Name Payable Number Description (Item) 83070 09/03/2025 VALLEY PACIFIC PETROLEUM SERVICES, INC CL 25-907998 Fuel 174 100-6210-5450 Internet Service 235.87
100-6505-4000 Utility - General & Electric 7.84
100-6505-5400 Utility - General & Electric 302.72
9/3/2025 4:07:55 PM Page 5 of 7
100-5740-5450 Building Repair and Maintenance 280.24
100-6025-1200 Professional Services 795
100-6035-3200 Personnel Services 146
100-6035-5400 Personnel Services 146
100-6210-1500 Internet Service 58.33
100-6210-2000 Internet Service 58.34
100-5705-3200 Equipment Maintenance 67.63
100-5705-4000 Equipment Maintenance 19.32
100-5705-5450 Equipment Maintenance 38.64
100-5715-2000 Vehicle Repairs 3843.47
100-5715-4100 Vehicle Repairs 80.12
100-5740-1500 Building Repair and Maintenance 50.35
100-5505-4000 Vehicle Fuel & Oil 174
100-5505-4100 Vehicle Fuel & Oil 1299.71
100-5505-5450 Vehicle Fuel & Oil 767.12
100-5565-5450 Janitorial Supplies 250.98
100-5705-1500 Equipment Maintenance 154.57
100-5705-2000 Equipment Maintenance 270.52
100-5500-4100 Department Supplies 303.11
100-5500-5450 Department Supplies 42.71
100-5500-5500 Department Supplies 48.86
100-5505-1500 Vehicle Fuel & Oil 67.62
100-5505-2000 Vehicle Fuel & Oil 4921.24
100-5505-2800 Vehicle Fuel & Oil 307.8
100-5265-5400 Miscellaneous Benefits 60
100-5500-1200 Department Supplies 16.41
100-5500-1500 Department Supplies 330.27
100-5500-2000 Department Supplies 331.65
100-5500-2800 Department Supplies 150.4
100-5500-3200 Department Supplies 53.36
100-2405 Parking Fund-County 80.5
100-2410 Parking Fund-State 172.5
100-2415 Parking Fund - Ferndale 298.35
100-5265-1150 Miscellaneous Benefits 20
100-5265-1200 Miscellaneous Benefits 20
100-5265-2000 Miscellaneous Benefits 60
550 - Wastewater Fund 17250.8
590 - TDA Transit Fund 1112.97
672 - Forest Hill Water Booster Fund 354.45
Grand Total: 92578.1
Account Summary
Account NumberAccount Name Payment Amount
100-1680 Distributed Office Supplies 794.87
100-1683 Distributed Utilities 2544.55
100 - General Fund 26697.8
101 - Transaction and Use Tax Fund 732.92
120 - Development & Building Fund 2852.79
160 - Riverlodge Fund 1804.19
189 - Measure Z Fund 441.1
200 - Storm Drainage Fund 163.2
280 - Gas Tax Fund 6964.83
500 - Water Fund 34855.5
510 - Water Capital Fund -652.36
Expense Approval Report Payment Dates: 9/1/2025 - 9/30/2025 Report Summary
Fund Summary
Fund Payment Amount
550-5505-6600 Vehicle Fuel & Oil 1107.08
550-5525-6500 Asphalt 327.98
550-5555-6600 Plant Chemicals 14523.9
550-5705-6700 Equipment Maintenance 144.91
9/3/2025 4:07:55 PM Page 6 of 7
510-5500-9124 Department Supplies -652.36
550-1310 Chemical Tank Deposits -5300
550-5265-6500 Miscellaneous Benefits 20
550-5500-6500 Department Supplies 36.94
550-5500-6600 Department Supplies 2680.26
550-5500-6700 Department Supplies 1196.8
500-5715-6100 Vehicle Repairs 43.76
500-5730-6000 Alarm System Maintenance 151.5
500-5740-6100 Building Repair and Maintenance 51.43
500-6045-6000 Laboratory Services 1494
500-6210-6300 Internet Service 58.34
500-6505-6000 Utility - General & Electric 27144.2
500-5500-6200 Department Supplies 1113.58
500-5500-6300 Department Supplies 54.75
500-5505-6100 Vehicle Fuel & Oil 2529.05
500-5520-6100 Base Materials 174.32
500-5525-6100 Asphalt 327.97
500-5705-6300 Equipment Maintenance 144.91
280-5720-4200 Equipment Repair 967.53
280-5726-4200 Street Light Maintenance 367.56
280-6505-4200 Utility - General & Electric 4422.32
500-5265-6100 Miscellaneous Benefits 20
500-5500-6000 Department Supplies 139.87
500-5500-6100 Department Supplies 1407.8
160-6505-5800 Utility - General & Electric 151.03
189-5505-2000 Vehicle Fuel & Oil 441.1
200-6618-4310 SWMP Implementation 163.2
280-5265-4200 Miscellaneous Benefits 20
280-5500-4200 Department Supplies 858.13
280-5505-4200 Vehicle Fuel & Oil 329.29
160-5547-5800 User Group Linen 615.08
160-5565-5800 Janitorial Supplies 204.32
160-5705-5800 Equipment Maintenance 38.64
160-5740-5800 Building Repair and Maintenance 32.14
160-6035-5800 Personnel Services 129
160-6210-5800 Internet Service 211.48
120-5705-3000 Equipment Maintenance 86.95
120-6025-3000 Professional Services 2325
120-6035-3000 Personnel Services 146
120-6305-3100 Publication Expense 172.8
160-5500-5700 Department Supplies 102.22
160-5546-5800 Catering - Other 320.28
100-7015-2000 Dues & Subscriptions 58.04
100-7400-2800 Miranda's Rescue 800
100-7612-1000 Contingency 264.46
101-5505-2000 Vehicle Fuel & Oil 112.92
101-6025-2000 Professional Services 620
120-5505-3000 Vehicle Fuel & Oil 122.04
100-6505-5450 Utility - General & Electric 3278.37
100-6505-5500 Utility - General & Electric 431.13
100-6505-5600 Utility - General & Electric 194.81
100-6600-2000 State Fees 210
100-6625-2000 Livescan Fees 825
100-7000-2000 Travel, Conferences & Training 965
Expense Approval Report Payment Dates: 9/1/2025 - 9/30/2025 Account Summary
Account NumberAccount Name Payment Amount
**None** 92578.1
Grand Total: 92578.1
9/3/2025 4:07:55 PM Page 7 of 7
550-6505-6600 Utility - General & Electric 1980.14
550-7000-6600 Travel, Conferences & Training 91
590-5505-5000 Vehicle Fuel & Oil 1112.97
672-6505-6515 Utility - General & Electric 354.45
Grand Total: 92578.1
Project Account Summary
Project Account Key Payment Amount
Account Summary
Account NumberAccount Name Payment Amount
550-5715-6500 Vehicle Repairs 95.88
550-5730-6600 Alarm System Maintenance 106.5
550-6045-6600 Laboratory Services 176
550-6205-6700 Cell Phones 5.02
550-6210-6700 Internet Service 58.34
Expense Approval Report Payment Dates: 9/1/2025 - 9/30/2025 Amount
83084 09/11/2025 BARKER, IAN 05202025 Adult Softball Forfeit Deposit Refund 150 9/11/2025 8:27:17 AM Page 1 of 7
83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 412.22 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 422.12 83083 09/11/2025 AWP SAFETY 9010187 Traffic Marking Supplies - Streets 135.94 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 1184.71 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 210.46 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 4.49 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 40.38 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 73.58 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 325.31 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 143.49 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 1251.3 83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 89.74 83080 09/11/2025 AT&T 9011 24022169 9391062011 53.14
83080 09/11/2025 AT&T 9011 24022170 9391062012 47.34
83082 09/11/2025 AT&T MOBILITY X09092025 September Cellular Service 22.44 83080 09/11/2025 AT&T 9011 24022167 9391062009 176.64
83080 09/11/2025 AT&T 9011 24022168 9391062010 48.1
83080 09/11/2025 AT&T 9011 24022168 9391062010 89.34
83080 09/11/2025 AT&T 9011 24022142 9391061253 92.5
83080 09/11/2025 AT&T 9011 24022142 9391061253 18.51
83080 09/11/2025 AT&T 9011 24022167 9391062009 95.12
83080 09/11/2025 AT&T 9011 24022139 9391061250 19.32
83080 09/11/2025 AT&T 9011 24022140 9391061251 132.89
83080 09/11/2025 AT&T 9011 24022141 9391061252 256.17
83080 09/11/2025 AT&T 9011 24022134 9391061220 60.73
83080 09/11/2025 AT&T 9011 24022135 9391061221 31.14
83080 09/11/2025 AT&T 9011 24022138 9391061249 42.66
83080 09/11/2025 AT&T 9011 24022132 9391061218 90.31
83080 09/11/2025 AT&T 9011 24022133 9391061219 30.36
83080 09/11/2025 AT&T 9011 24022133 9391061219 30.37
83080 09/11/2025 AT&T 9011 24022128 9391061213 261.41
83080 09/11/2025 AT&T 9011 24022129 9391061214 31.14
83080 09/11/2025 AT&T 9011 24022131 9391061217 31.14
83080 09/11/2025 AT&T 9011 24022123 9391061208 31.14
83080 09/11/2025 AT&T 9011 24022124 9391061209 208.65
83080 09/11/2025 AT&T 9011 24022127 9391061212 31.14
83080 09/11/2025 AT&T 9011 24007311 9391082149 367.49
83080 09/11/2025 AT&T 9011 24007311 9391082149 367.49
83080 09/11/2025 AT&T 9011 24008458 9391083962 285.94
83080 09/11/2025 AT&T 9011 24007311 9391082149 2171.58
83080 09/11/2025 AT&T 9011 24007311 9391082149 1007.19
83080 09/11/2025 AT&T 9011 24007311 9391082149 626.09
83080 09/11/2025 AT&T 9011 24003293 9391061243 146.76
83080 09/11/2025 AT&T 9011 24003552 9391062358 64.04
83080 09/11/2025 AT&T 9011 24007311 9391082149 3897.96
83079 09/11/2025 AMEN, COLT 083125 Planning Commission 8.12 15 83080 09/11/2025 AT&T 9011 24003289 9391061237 54.39
83080 09/11/2025 AT&T 9011 24003289 9391061237 101.01
83078 09/11/2025 ACCUSOURCEHR 76433 Pre-employment Background Checks 461.42 83078 09/11/2025 ACCUSOURCEHR 76433 Pre-employment Background Checks 74.48 83079 09/11/2025 AMEN, COLT 083125 Planning Commission 8.12 15 Expense Approval Report
CITY OF FORTUNA By (None)
Payment Dates 9/11/2025 - 9/11/2025
Payment Number Payment Date Vendor Name Payable Number Description (Item) 83077 09/11/2025 ACCESS HUMBOLDT 2326 City Council Televised Meetings FY 25/26 103.25 83077 09/11/2025 ACCESS HUMBOLDT 2327 Planning Commission Televised Meetings FY 25/26 94.5 Amount
83112 09/11/2025 HUMMEL TIRE & WHEEL 284685 Tires x6 - WWTP 1184.5 83112 09/11/2025 HUMMEL TIRE & WHEEL 284685 Tires x6 - WWTP 1184.51 9/11/2025 8:27:17 AM Page 2 of 7
83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1219858 Vet Services 120 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1219880 Vet Services 45 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1220130 Vet Services 30 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1219163 Vet Services 356.95 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1219262 Vet Services 243.37 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1219703 Vet Services 283.29 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1217940 Vet Services 30 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1218508 Vet Services 125.74 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1219043 Vet Services 110.99 83110 09/11/2025 HUMBOLDT SECTION CATA 081125 Park Deposit Refund 250 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1217605 Vet Services 325 83111 09/11/2025 HUMBOLDT VETERINARY MEDICAL GRP 1217799 Vet Services 30 83107 09/11/2025 HEALTHSPORT 090125 September Gym Memberships 41.7 83108 09/11/2025 HIGHWAY SPECIALTY CO INC 254452 Traffic Marking Paint - Streets 670.28 83109 09/11/2025 HOUSE, AIMEE 05202025 Adult Softball Forfeit Deposit Refund 150 83107 09/11/2025 HEALTHSPORT 090125 September Gym Memberships 26 83107 09/11/2025 HEALTHSPORT 090125 September Gym Memberships 229 83107 09/11/2025 HEALTHSPORT 090125 September Gym Memberships 23.5 83105 09/11/2025 H&S ENERGY GROUP HCL-037804-25 Car Wash Services - PD 35 83106 09/11/2025 HALLEY, STEPHANIE 083125 Planning Commission 8.12 15 83106 09/11/2025 HALLEY, STEPHANIE 083125 Planning Commission 8.12 15 83104 09/11/2025 GRAINGER 9622770056 Full Face Respirator - WWTP 739.74 83104 09/11/2025 GRAINGER 9623043966 Headstrap Assemblies - WWTP 549.57 83104 09/11/2025 GRAINGER 9627635288 Full Face Flange Gaskets - WWTP 191.55 83103 09/11/2025 GHD INC 380-0076388 Downtown Water and Sewer Line Project 686.14 83103 09/11/2025 GHD INC 380-0076450 US 101/12th Street Interchange PA & ED 6881.38 83103 09/11/2025 GHD INC 380-0077401 Kenmar Interchange PS&E 112268.23 83102 09/11/2025 GENARO, NICOLE 05202025 Adult Softball Forfeit Deposit Refund 150 83103 09/11/2025 GHD INC 380-0076264 Well 5B System Tie-in Design/Upgrade 4441.7 83103 09/11/2025 GHD INC 380-0076388 Downtown Water and Sewer Line Project 686.13 83101 09/11/2025 FRANK A OLSEN COMPANY 256543 Digester Replacement Valves - WWTP 3383.22 83101 09/11/2025 FRANK A OLSEN COMPANY 256557 Digester Replacement Valves - WWTP 6169.39 83101 09/11/2025 FRANK A OLSEN COMPANY 256642 Digester Replacement Valves - WWTP 3615.4 83100 09/11/2025 FORTUNA ACE HARDWARE 397410 Top Soil - Utilities 6.56 83100 09/11/2025 FORTUNA ACE HARDWARE 397458 Marking Paint/Tape/Janitorial - Parks 65.84 83100 09/11/2025 FORTUNA ACE HARDWARE 397458 Marking Paint/Tape/Janitorial - Parks 28.2 83100 09/11/2025 FORTUNA ACE HARDWARE 397170 Bleach/Funnel - Utilities 49.89 83100 09/11/2025 FORTUNA ACE HARDWARE 397243 Cable/Janitorial Supplies - Utilities 63.46 83100 09/11/2025 FORTUNA ACE HARDWARE 397386 Batteries - River Lodge 25.17 83098 09/11/2025 EUREKA OVERHEAD DOOR FC adj744 Shop Door Repair - WWTP 304.25 83099 09/11/2025 FEDEX 8-962-97663 Lab Shipping Service 161.95 83099 09/11/2025 FEDEX 8-972-74375 Lab Shipping Services 272.9 83095 09/11/2025 DORRIS, JOSHUA 083125 Planning Commission 8.12 15 83096 09/11/2025 ECO MEDICAL 38010 Medical Waste Disposal Service 94 83097 09/11/2025 EMERALD FOOTBALL CLUB 080625 Park Deposit Refund 250 83094 09/11/2025 DIKES, BUCKLEY D. 2025-08-003 August K9 Training - Blitz/Cain 579.58 83094 09/11/2025 DIKES, BUCKLEY D. 2025-08-003 August K9 Training - Blitz/Cain 579.59 83095 09/11/2025 DORRIS, JOSHUA 083125 Planning Commission 8.12 15 83091 09/11/2025 CLAYBON, ARCHIE 05202025 Adult Softball Forfeit Deposit Refund 192.54 83092 09/11/2025 CROTTY, CHAD 05202025 Adult Softball Forfeit Deposit Refund 107.46 83093 09/11/2025 CRUZ, DENISE 062425 Park Deposit Refund 250 83088 09/11/2025 CALKINS, EDWARD 083125 Planning Commission 8.12 15 83089 09/11/2025 CAMPOS, PABLO 05202025 Adult Softball Forfeit Deposit Refund 150 83090 09/11/2025 CLARK, SHARI 032425 Monday Club Deposit Refund 250 83086 09/11/2025 BIONDINI, SARA 05202025 Adult Softball Forfeit Deposit Refund 150 83087 09/11/2025 BROWNFIELD, BIRDIE 031325 Park Deposit Refund 250 83088 09/11/2025 CALKINS, EDWARD 083125 Planning Commission 8.12 15 Expense Approval Report Payment Dates: 9/11/2025 - 9/11/2025 Payment Number Payment Date Vendor Name Payable Number Description (Item) 83085 09/11/2025 BIG ISLAND KINE 090425 Refund Business License Overpayment 25 Amount
83137 09/11/2025 STAPLES BUSINESS CREDIT 7664020926 Hand Sanitizer - PD 66.67 9/11/2025 8:27:17 AM Page 3 of 7
83135 09/11/2025 SIAOSI, MEGAN 05202025 Adult Softball Forfeit Deposit Refund 150 83136 09/11/2025 SOUTHERN HUMBOLDT AA 090425 River Lodge Deposit Refund Less Cancel Fee 200 83136 09/11/2025 SOUTHERN HUMBOLDT AA 090425 River Lodge Deposit Refund Less Cancel Fee -100 83132 09/11/2025 PETERSON SW030053022 CAT Equipment Repair - WWTP 1298.02 83133 09/11/2025 RIVERA, JOSEFINA 05202025 Adult Softball Forfeit Deposit Refund 150 83134 09/11/2025 RYDER, BILL 090325 Piana Tuning - River Lodge 180 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08258897 65641318897 14.29 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08259662 43566719662 339.02 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08259729 17524449729 169.62 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08255127 43154195127 99.61 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08256009 33454186009 14.29 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08256357 27889626357 25095.64 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08253881 58771943881 2476.81 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08253994 28883393994 47.6 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08255020 63983385020 115.74 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08252716 23664592716 3.51 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08252970 93570722970 69.47 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08253045 45859733045 182.08 83130 09/11/2025 PACIFIC CREDIT SERVICES 115400000006 August Collection Service 22.73 83130 09/11/2025 PACIFIC CREDIT SERVICES 115400000006 August Collection Service 22.74 83131 09/11/2025 PACIFIC GAS & ELECTRIC CO 08251965 88771941965 19.95 83128 09/11/2025 O'REILLY AUTOMOTIVE STORE 331255 AntiFreeze - Shop 30.1 83129 09/11/2025 PACE SUPPLY CORP 210702356 Impeller/Gasket/Seal/Sleeve Shaft - WWTP 1949.89 83129 09/11/2025 PACE SUPPLY CORP 210739130 Angle Ball Meter Valves - Utilities 1971 83128 09/11/2025 O'REILLY AUTOMOTIVE STORE 331255 AntiFreeze - Shop 30.08 83128 09/11/2025 O'REILLY AUTOMOTIVE STORE 331255 AntiFreeze - Shop 30.08 83128 09/11/2025 O'REILLY AUTOMOTIVE STORE 331255 AntiFreeze - Shop 30.08 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 9.85 83128 09/11/2025 O'REILLY AUTOMOTIVE STORE 331182 Coolant Hose - Parks 31.02 83128 09/11/2025 O'REILLY AUTOMOTIVE STORE 331198 Connector/Coolant Connector - Parks 28.67 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 19.7 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 29.55 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 29.55 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 39.4 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 19.7 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 1.97 83126 09/11/2025 NORMAN'S DRY CLEANERS 25247-287-A River Lodge Linen Service 12 83127 09/11/2025 NORTH COAST JOURNAL 2025143022 CSO Recruitment Advertising 78 83127 09/11/2025 NORTH COAST JOURNAL 2025143218 Lead Vehicle/Equipment Mech Recruitment Adv 47.28 83125 09/11/2025 NICHOLS, NELEEN 083125 Planning Commission 8.12 15 83125 09/11/2025 NICHOLS, NELEEN 083125 Planning Commission 8.12 15 83126 09/11/2025 NORMAN'S DRY CLEANERS 25240-912-A River Lodge Linen Service 133.15 83122 09/11/2025 MISSION LINEN INDUS SERV 524530965 River Lodge Linen Service 29.47 83123 09/11/2025 MITCHELL, NICK 05202025 Adult Softball Forfeit Deposit Refund 150 83124 09/11/2025 NAPA AUTO PARTS FORTUNA 87888 Parts Cleaner - WWTP 312.09 83122 09/11/2025 MISSION LINEN INDUS SERV 524521589 Police Mat Cleaning Service FY 25/26 58.04 83122 09/11/2025 MISSION LINEN INDUS SERV 524521590 Parks/Rink Linen Service 99.9 83122 09/11/2025 MISSION LINEN INDUS SERV 524530965 River Lodge Linen Service 415.87 83120 09/11/2025 LEAGUE OF CALIF CITIES 1845 Division Meeting - M Johnson 40 83121 09/11/2025 MENDES SUPPLY INC M284426 Janitorial Supplies - Parks 565.25 83122 09/11/2025 MISSION LINEN INDUS SERV 524508382 Trash Can Liners - River Lodge 37.77 83117 09/11/2025 KEIN, MICHAEL 083125 Planning Commission 8.12 15 83118 09/11/2025 KENDALL, ERIC 05202025 Adult Softball Forfeit Deposit Refund 150 83119 09/11/2025 KEREKES, CAMERON 090425 River Lodge Deposit Refund 1000 83115 09/11/2025 JC AUTO 05202025 Adult Softball Forfeit Deposit Refund 150 83116 09/11/2025 KARGES, KEL 05202025 Adult Softball Forfeit Deposit Refund 150 83117 09/11/2025 KEIN, MICHAEL 083125 Planning Commission 8.12 15 Payment Number Payment Date Vendor Name Payable Number Description (Item) 83113 09/11/2025 IDEXX DISTRIBUTION, INC 3181458966 Lab Supplies 2305.54 83114 09/11/2025 JACOBS ENGINEERING GROUP INC W8Y10900-035 NPDES Compliance Engineering 106298.95 Expense Approval Report Payment Dates: 9/11/2025 - 9/11/2025 Amount
83147 09/11/2025 WORLD OIL ENVIRONMENTAL SERVICESI500-01262035 Used Oil/Filter Disposal - Shop 11 83147 09/11/2025 WORLD OIL ENVIRONMENTAL SERVICESI500-01262035 Used Oil/Filter Disposal - Shop 11 Grand Total: 321631.4
9/11/2025 8:27:17 AM Page 4 of 7
83147 09/11/2025 WORLD OIL ENVIRONMENTAL SERVICESI500-01262035 Used Oil/Filter Disposal - Shop 11 83147 09/11/2025 WORLD OIL ENVIRONMENTAL SERVICESI500-01262035 Used Oil/Filter Disposal - Shop 11 83147 09/11/2025 WORLD OIL ENVIRONMENTAL SERVICESI500-01262035 Used Oil/Filter Disposal - Shop 11 83144 09/11/2025 VIGGERS, SHILOH 05202025 Adult Softball Forfeit Deposit Refund 150 83145 09/11/2025 WILDWOOD SAW 40809 Equipment Maintenance - Parks 190.15 83146 09/11/2025 WILL, ROB 05202025 Adult Softball Forfeit Deposit Refund 150 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses -50.36 83143 09/11/2025 USABLUEBOOK INV00802768 Acetate Buffer Solution - WWTP 535.13 83143 09/11/2025 USABLUEBOOK INV00808670 PH Buffer Pack - Lab 367.52 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 65 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 2.79 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 588.03 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 29.98 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 65 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 38.16 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 149.28 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 50.99 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 114.86 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 170 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 48.03 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 52.01 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 20.96 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 26.99 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 268.38 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 11.99 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 309.64 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 171.25 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 659.92 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 16.99 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 144.99 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 30 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 2641.51 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 150 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 105.05 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 279.83 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 90.62 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 2.33 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 65 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 81.02 83141 09/11/2025 TRACTOR SUPPLY CREDIT PLA 623206 Kennel Supplies 140.46 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 382.94 83142 09/11/2025 US BANK CORP PAYMENT SYS 082225 August Cal Card Expenses 53.64 83138 09/11/2025 THOMPSEN, MATT 05202025 Adult Softball Forfeit Deposit Refund 150 83139 09/11/2025 THOMSEN, GREG 05202025 Adult Softball Forfeit Deposit Refund 150 83140 09/11/2025 THRIFTY SUPPLY CO 1043505-01 Equipment Maintenance - WWTP 453.13 Expense Approval Report Payment Dates: 9/11/2025 - 9/11/2025 Payment Number Payment Date Vendor Name Payable Number Description (Item) 83137 09/11/2025 STAPLES BUSINESS CREDIT 7664299799 Time Card Colored Paper - Finance 38.75 100-6205-5450 Cell Phones 325.31
100-6210-1500 Internet Service 3897.96
100-6210-2000 Internet Service 3356.29
100-6210-5450 Internet Service 1007.19
9/11/2025 8:27:17 AM Page 5 of 7
100-6205-1100 Cell Phones 22.44
100-6205-1500 Cell Phones 143.49
100-6205-2000 Cell Phones 1251.3
100-6205-3200 Cell Phones 89.74
100-6205-4000 Cell Phones 40.38
100-6205-4100 Cell Phones 73.58
100-6025-3200 Professional Services 30
100-6035-2000 Personnel Services 125.28
100-6035-4100 Personnel Services 39.4
100-6035-5450 Personnel Services 481.12
100-6200-2000 Telephone 677.78
100-6200-5400 Telephone 317.67
100-5715-2000 Vehicle Repairs 76.08
100-5715-4100 Vehicle Repairs 30.08
100-5715-5450 Vehicle Repairs 70.69
100-5720-4100 Equipment Repair 11
100-5720-5450 Equipment Repair 190.15
100-5750-5450 Weed Abatement 90.62
100-5500-4000 Department Supplies 2.33
100-5500-4100 Department Supplies 65
100-5500-5400 Department Supplies 81.02
100-5500-5450 Department Supplies 170.89
100-5515-2000 Ammunition & Range Supplies 279.83
100-5565-5450 Janitorial Supplies 693.35
100-4315 Adult Leagues 2550
100-5265-1150 Miscellaneous Benefits 26
100-5265-2000 Miscellaneous Benefits 229
100-5500-2000 Department Supplies 449.61
100-5500-2800 Department Supplies 140.46
100-5500-3200 Department Supplies 53.64
Grand Total: 321631
Account Summary
Account NumberAccount Name Payment Amount
100-1680 Distributed Office Supplies 38.75
100-1684 Distributed Telephone 401.3
100-2220 Refundable Park Deposits 1000
100-4080 Business License Taxes 25
270 - STIP/TEA Fund 119150
280 - Gas Tax Fund 1023.68
500 - Water Fund 9786.93
510 - Water Capital Fund 5177.72
550 - Wastewater Fund 45623.1
560 - Wastewater Capital Fund 106985
590 - TDA Transit Fund 64.34
670 - Rancho Bueno Vista Fund 47.6
671 - Kenwood Meadows Fund 69.47
Expense Approval Report Payment Dates: 9/11/2025 - 9/11/2025 Report Summary
Fund Summary
Fund Payment Amount
100 - General Fund 25531.4
101 - Transaction and Use Tax Fund 579.58
105 - Donations Fund 847.97
120 - Development & Building Fund 490.94
160 - Riverlodge Fund 6160.07
210 - Solid Waste Fund 94
500-5715-6000 Vehicle Repairs 1184.5
500-5715-6100 Vehicle Repairs 41.08
500-5720-6000 Equipment Repair 2403.02
500-6035-6100 Personnel Services 29.55
500-6200-6100 Telephone 95.18
9/11/2025 8:27:17 AM Page 6 of 7
280-6505-4200 Utility - General & Electric 167.78
500-5265-6100 Miscellaneous Benefits 41.7
500-5500-6000 Department Supplies 739.74
500-5500-6100 Department Supplies 2106.02
500-5500-6300 Department Supplies 38.16
500-5557-6000 Lab Supplies 2305.54
160-6505-5800 Utility - General & Electric 2476.81
210-5735-5300 Janitorial Services - HHW 94
270-6005-9112 Engineering Services 6881.38
270-6005-9978 Engineering Services 112268
280-5500-4200 Department Supplies 836.2
280-6035-4200 Personnel Services 19.7
160-5705-5800 Equipment Maintenance 180
160-5740-5800 Building Repair and Maintenance 114.86
160-6200-5700 Telephone 31.14
160-6200-5800 Telephone 399.44
160-6205-5800 Cell Phones 4.49
160-6210-5800 Internet Service 626.09
160-5500-5800 Department Supplies 73.2
160-5539-5800 Kitchen Supplies 52.01
160-5540-5800 Catering - Food 149.28
160-5546-5800 Catering - Other 50.99
160-5547-5800 User Group Linen 561.02
160-5565-5800 Janitorial Supplies 67.24
120-6205-3000 Cell Phones 210.46
120-7600-3100 Planning Commission 90
160-2221 Monday Club Deposits 250
160-2222 River Lodge Deposits 1200
160-4330 River Lodge Rental Fees -100
160-5265-5800 Miscellaneous Benefits 23.5
100-7616-3200 Televised Meetings 94.5
101-5500-2850 Department Supplies 579.58
105-5500-2850 Department Supplies 847.97
120-5500-3000 Department Supplies 170
120-6035-3000 Personnel Services 1.97
120-6200-3000 Telephone 18.51
100-7230-5400 Skating Program 171.25
100-7400-2800 Miranda's Rescue 801.95
100-7455-2800 Veterinary Expenses 898.39
100-7600-3200 Planning Commission 90
100-7612-1100 Contingency 20.96
100-7616-1000 Televised Meetings 130.24
100-7000-3200 Travel, Conferences & Training 150
100-7015-1100 Dues & Subscriptions 659.92
100-7015-1600 Dues & Subscriptions 16.99
100-7015-2000 Dues & Subscriptions 203.03
100-7015-5400 Dues & Subscriptions 11.99
100-7220-5400 Summer Fun 309.64
Account Summary
Account NumberAccount Name Payment Amount
100-6220-2000 CLETS Service 285.94
100-6505-2800 Utility - General & Electric 169.62
100-6505-5450 Utility - General & Electric 281.69
100-7000-1000 Travel, Conferences & Training 40
100-7000-2000 Travel, Conferences & Training 2641.51
Expense Approval Report Payment Dates: 9/11/2025 - 9/11/2025 671-6505-6510 Utility - General & Electric 69.47
Grand Total: 321631
Project Account Summary
Project Account Key Payment Amount
**None** 320783
Exp DONATION-K9 847.97
Grand Total: 321631
9/11/2025 8:27:17 AM Page 7 of 7
560-6005-0171 Engineering Services 106299
560-6015-9976 General Contracting 686.14
590-5500-5000 Department Supplies -50.36
590-6035-5000 Personnel Services 84.33
590-6200-5000 Telephone 30.37
670-6505-6505 Utility - General & Electric 47.6
550-6200-6500 Telephone 304.07
550-6205-6700 Cell Phones 422.12
550-6210-6700 Internet Service 367.49
550-6505-6600 Utility - General & Electric 25434.7
550-6633-6600 Regulatory Compliance 434.85
550-7800-6700 Bad Debts 22.74
550-5715-6500 Vehicle Repairs 30.1
550-5715-6600 Vehicle Repairs 2482.53
550-5720-6500 Equipment Repair 11
550-5720-6600 Equipment Repair 13756
550-5740-6600 Building Repair and Maintenance 304.25
550-6035-6500 Personnel Services 29.55
510-6005-9066 Engineering Services 4441.7
510-6015-9108 General Contracting 686.13
550-5500-6500 Department Supplies 65
550-5500-6600 Department Supplies 1588.34
550-5500-6700 Department Supplies 2.79
550-5557-6600 Lab Supplies 367.52
Expense Approval Report Payment Dates: 9/11/2025 - 9/11/2025 Account Summary
Account NumberAccount Name Payment Amount
500-6205-6300 Cell Phones 412.22
500-6210-6300 Internet Service 367.49
500-7800-6300 Bad Debts 22.73
510-5500-9124 Department Supplies 49.89
Consent Item 4i

STAFF REPORT
City Council Consent Item
DATE: September 15, 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 Appointee to the Planning Commission and the Rohner Community Recreation and Parks District Board of Directors
STAFF RECOMMENDATION:

Review the application for the Rohner Community Recreation and Parks District (RCRPD) Board, and consider approving the Mayor’s recommendation for appointment.

EXECUTIVE SUMMARY:

Rohner Community Recreation and Parks District:

One (1) of the five seats on the RCRPD Board is vacant as of April 21, 2025.

The City received one application:
• Richard Mull. (new appointment)
The term of office for RCRPD Board is at the City’s discretion and has no specific limit.

RECOMMENDED COUNCIL ACTION:

Motion to Approve Mayor’s recommendation for appointee to the RCRPD Board. Consent Agenda vote.

ATTACHMENTS:

Board Application:
• RCRPD: Cameron Mull

Business Item 5a

STAFF REPORT
City Council Consent Item
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Approve the Investment Policy for Fiscal Year 2025-26; Resolution 2025-24 STAFF RECOMMEDATION:

Approve the Investment Policy for Fiscal Year 2025-26 by adopting Resolution 2025-24 EXECUTIVE SUMMARY:

The purpose of the Investment Policy (Policy) is to establish cash management and investment guidelines for the City Treasurer, who is responsible for the administration of the City of Fortuna Investment Program. It is the policy of the City of Fortuna to meet the short and long-term cash flow demands of the City in a manner which will provide for the safety of principal and sufficient liquidity, while providing an investment return.

The City last revised the Investment Policy on September 16, 2024. As such, it is time for the annual review by the City Council of the Investment Policy. Staff are not recommending any changes to the investment policy for Fiscal Year 2025-26.

Attached is the June 30, 2025, investment report for Council review. Please note that the total funds listed in the investment report are pooled funds comprised of the many general funds, restricted funds, and enterprise funds held by the City and therefore a majority of the funds are restricted to specific projects and purposes.

RECOMMENDED COUNCIL ACTION:

1. Receive staff report and review questions with staff

2. Open public comment

3. Close public comment

4. Motion to adopt Resolution 2025-24 and read by title only. Roll call vote.

ATTACHMENTS
• Resolution 2025-24, A Resolution of the City Council of the City of Fortuna Approving the Investment Policy for the Fiscal Year 2025-26.
• City of Fortuna Investment Policy
• June 30, 2025 Treasurer’s Report
Business Item 5a

RESOLUTION 2025-24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA APPROVING THE INVESTMENT POLICY FOR THE FISCAL YEAR 2025-26 WHEREAS, sound investment practices are facilitated by the preparation of written governing policy statements, and;
WHEREAS, such policies should cover all substantive aspects of the investment of funds, and; WHEREAS, the City Treasurer has prepared a comprehensive Investment Policy document pursuant to which the City will manage and conduct investment of the City’s pooled funds, and; WHEREAS, in furtherance of the prudent management of the City’s treasury pools, the Investment Policy is in compliance with State law provisions establishing investment objectives and setting forth permissible investment of public funds not required for immediate expenditure, and;
WHEREAS, the Fortuna Municipal Code designates the City Finance Director as the City Treasurer, and;
WHEREAS, the delegation of investment authority and responsibility from the City Council to the City Treasurer will allow the City Treasurer and his staff to continue the prudent investment of the City’s pooled funds and the effective and efficient support of the City’s efforts to meet its cash flow needs.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fortuna that the Council hereby
Section 1. Approves and adopts the Investment Policy submitted by the City Treasurer, attached hereto as Exhibit A.

Section 2. The City Council, pursuant to Government Code section 53607, delegates to the City Treasurer for a period of twelve (12) months the authority to invest the City’s pooled funds in accordance with the Investment Policy.

Section 3. Exhibit A is part of this resolution.

PASSED AND ADOPTED on this 15th day of September 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

Mike Johnson, Mayor
ATTEST:

Siana L. Emmons, City Clerk

City of Fortuna
Investment Policy
____________________________________________________________________________ September 16, 2024
Council Resolution 2024-31
A. Introduction
The purpose of this document is to identify various policies and procedures that enhance the opportunities for a prudent and systemic Investment Policy and to organize and formalize investment related activities. Related activities which comprise good cash management include accurate cash projections, the expeditious collection of revenue, the control of disbursements, cost-effective banking relations, and a short-term borrowing program which coordinates working capital requirements and investment opportunity. In concert with these requirements are many facets of an appropriate and secure short-term investment program.

B. Scope
It is intended that this policy cover all funds and investment activities under the direct authority of the City.

C. Objectives
The primary objectives of the City’s investment activities shall be, in order of priority:

1. Safety. Safety of principal is the foremost objective of the investment program. The City’s investments shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio.

2. Liquidity. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet its reasonably anticipated cash flow requirements. An adequate percentage of the portfolio should be maintained in liquid, short-term securities which can be converted to cash if necessary to meet disbursement requirements.

3. Yield. Yield should become a consideration only after the basic requirements of safety and liquidity have been met. The City seeks to attain a market-average rate of return on its investments throughout economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and State and Local laws, ordinances or resolutions that restrict investments.

D. Prudence
All participants in the investment process shall recognize that the investment program is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism worthy of the public trust.

All persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. The prudent investor standard states, in essence, that “a trustee shall act with care, skill, prudence, and diligence under circumstances then prevailing,

including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
E. Delegation of Authority
The City Council delegates its authority to invest funds of the City for a one-year period to the City Treasurer, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires. Subject to review, the City Council may renew the delegation of authority each year. The Treasurer shall make all investment decisions and transactions in strict accordance with state law and this Investment Policy. If authorized by the City Council, the Treasurer may delegate his/her investment decision-making and execution authority to an investment advisor. The advisor shall follow the investment policy, herein stated, and such other written instructions as are provided.

According to Municipal Code Section 2.10.010 the Finance Director shall additionally function as the ity Treasurer of the City and shall be responsible, under the City Manager’s direction, for keeping the record of all investments and submitting the reports as required by this policy and the California Government Code.

The Treasurer and the delegated investment officers, acting in accordance with written procedures and the investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

F. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the Investment Program, or which could impair their ability to make impartial investment decisions.

G. Internal Controls
The Treasurer shall establish a system of written internal controls to regulate the City’s investment activities, including the activities of any subordinate officials acting on behalf of the City.

Controls deemed most important include: control of collusion, separation of duties, separating transaction authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethics standards.

H. Authorized Financial Dealers and Institutions
A competitive process, when practical, will be used for all purchases and sales of investments. It shall be the City’s policy to purchase securities only from those authorized institutions and firms. No deposit of public funds shall be made except in a qualified public depository as established by state laws.

The Treasurer shall maintain a list of authorized broker/dealers and financial institutions that are approved for investment purposes. If an external investment advisor is authorized to conduct investment transactions on the City’s behalf, the investment advisor may use their own list of approved broker/dealers and financial institutions for investment purposes. This list should be provided to the City.

I. Safekeeping and Custody
All security transactions entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City shall be held in safekeeping by a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) LAIF, the county pool, and other local government investment pools; (ii) time certificates of deposit, and, (iii) money market mutual funds, since the purchased securities are not deliverable.

J. Authorized and Suitable Investments
The City’s investments are governed by Government Code, Sections 53600 et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investment to the investments listed below. In the event an apparent discrepancy is found between this policy and the Government Code, the more restrictive parameters will take precedence.

The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. Percentage holding limits listed in this section apply at the time the security is purchased. In the event a security held by the City is subject to a credit rating change that brings it below the minimum credit ratings specified in this policy, the Treasurer should notify the City Council of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the change, prognosis for recovery or further rate drops, and the market price of the security.

1. United States Treasury Issues. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the portfolio that may be invested in this category.

2. Federal Agency Obligations. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises. There is no limitation as to the percentage of the portfolio that may be invested in this category; however purchases of callable Federal Agency obligations are limited to a maximum of 20 percent of the portfolio. In addition, purchases of Federal Agency mortgage-backed securities issued by or fully guaranteed as to principal and interest by government agencies are limited to a maximum of 20 percent of the portfolio.

3. California Municipal Debt. Registered treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of this state.

Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Purchases are limited to securities rated at least in the “AA” category, or its equivalent, by a Nationally Recognized Statistical Rating Organization (“NRSRO”). A maximum of 15 percent of the portfolio may be invested in this category.

The amount invested with any one issuer shall not exceed 10 percent of the portfolio.

4. Medium-Term Notes. Medium-term notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases are limited to securities rated at least in the “A” category, or its equivalent, by a NRSRO. A maximum of 30 percent of the portfolio may be invested in this category. The amount invested in corporate notes of any one issuer in combination with any other securities from that issuer shall not exceed 10 percent of the portfolio.

5. Negotiable Certificates of Deposit. Negotiable certificates of deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a state-licensed branch of a foreign bank. The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit insurance. NCDs may not exceed 5 years in maturity. A maximum of 30 percent of the portfolio may be invested in this category.

The amount invested in NCDs with any one financial institution in combination with any other securities from that financial institution shall not exceed 5 percent of the portfolio.

6. Commercial Paper. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions: (i) Is organized and operating in the United States as a general corporation. (ii) Has total assets in excess of five hundred million dollars ($500,000,000). (iii) Has debt other than commercial paper, if any that is rated at least in the “AA” category, or its equivalent, by a NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less and not represent more than 10 percent of the outstanding paper of an issuing corporation. A maximum of 25 percent of the portfolio may be invested in this category. The amount invested in commercial paper of any one issuer in combination with any other securities from that issuer shall not exceed 10 percent of the portfolio.

7. Bankers’ Acceptances. Bankers’ acceptances, otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases are limited to bankers’ acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System. Purchases of bankers’ acceptances may not exceed 180 days maturity. Eligible bankers’ acceptances are restricted to issuing financial institutions with short-term paper rated in the highest category by a NRSRO. Investments in bankers’ acceptances are further limited to 40 percent of the portfolio. The amount invested in bankers’ acceptances of any one issuer in combination with any other securities from that issuer shall not exceed 10 percent of the portfolio.

8. Bank Deposits. FDIC insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts and time certificates of deposits (“TCDs”) in financial institutions located in California. The amount on deposit in any financial institution shall not exceed the shareholder’s equity. To be eligible to receive City deposits, the financial institution must have received a minimum overall satisfactory rating, under the Community Redevelopment Act, for meeting the credit needs of California Communities in its most recent evaluation. Bank deposits are required to be collateralized as specified under Government Code Section 53630 et. seq. The Treasurer, at his/her discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance.

The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. The maturity of TCDs may not exceed 1 year in maturity.

A maximum of 20 percent of the portfolio may be invested in TCDs.

9. Placement Service Time Certificates of Deposit. Certificates of deposit placed through a deposit placement service shall meet the requirements under Government Code Section 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit insurance. The maximum term for time certificates of deposit shall be five years. The combined amount invested in time certificates of deposit and negotiable certificates of deposit shall not exceed 30 percent of the portfolio.

10. State of California Local Agency Investment Fund (LAIF). LAIF is a voluntary program offering local agencies the opportunity to participate in a multi-billion dollar portfolio. LAIF is part of the State of California’ Pooled Money Investment Account (PMIA). Oversight of the PMIA is provided by a board whose members include the State Treasurer, Director of Finance, and the State controller. All securities are purchased under the authority of the California Government Code. There is no limitation as to the percentage of the portfolio that may be invested in this category.

11. Humboldt County Investment Pool. The City may invest in the Humboldt County Investment Pool operated by the Humboldt County Treasurer. A maximum of 50 percent of the portfolio may be invested in this category.

Whenever the City has any funds invested in County pool, the Treasurer shall maintain on file a copy of the pool’s current investment policy and its requirements for participation, including limitations on deposits or withdrawals. In addition, the Treasurer should review the pool’s summary portfolio holdings on a quarterly basis.

12. Local Government Investment Pools. Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7. To be eligible for purchase, the pool must meet the requirements of California Government Code Section 53601(p), the pool must seek to maintain a stable Net Asset Value (“NAV”), and the pool must rated at least AAAm, or its equivalent, by a NRSRO. A maximum of 50 percent of the portfolio may be invested in this category.

Whenever the City has any funds invested in a LGIP, the Treasurer shall maintain on file a copy of the pool’s current information statement. In addition, the Treasurer should review the pool’s summary portfolio holdings on a quarterly basis.

13. Money Market Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission that invests solely in U.S. Treasuries and Federal Agency obligations and repurchase agreements relating to such obligations.

The company shall have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). A maximum of 20 percent of the portfolio may be invested in this category.

If the City has funds invested in a money market fund, a copy of the fund’s information statement shall be maintained on file. In addition, the Treasurer should review the fund’s summary holdings on a quarterly basis.

K. Authorized Investments for Bond Proceeds
Bond proceeds shall be invested in the securities permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, bond proceeds will be invested in the securities permitted by this policy. Notwithstanding the other provisions of this policy, the percentage or dollar portfolio limitations listed in elsewhere in this policy do not apply to bond proceeds. In addition to the securities listed in Section J above, bond proceeds may be invested in a structured investment product if approved by the Treasurer.

L. Prohibited Investment Practices and Instruments
Any investment in a security not specifically listed in Section J, but otherwise permitted by the Government Code, is prohibited without the prior approval of the City Council. In addition, Government Code Section 53601.6 specifically prohibits investments in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages.

M. Maximum Maturities
It is the objective of this policy to provide a system which will accurately monitor and forecast revenues and expenditures so that the City can invest funds to the fullest extent possible. Funds of the City will be invested in accordance with sound treasury management principles.

The maximum maturity of individual investments shall not exceed the limits set forth in Section J.

Where no maturity limit is stated, no investment shall exceed a maturity of five years from the date of purchase unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment. With respect to maximum maturities, this policy authorizes investing bond reserve funds beyond five years if prudent in the opinion of the Treasurer.

N. Reporting
The Finance Director shall submit a quarterly investment report to the City Council. This report will include the following elements:
• Type of investment

• Name of issuer
• Date of maturity
• Amount of deposit or cost of security
• Current market value of securities with maturity in excess of twelve months • Coupon rate, if applicable
• Yield to maturity at cost
• A list of monthly investment transactions
• A statement that the portfolio complies with the investment policy, or the manner in which the portfolio is not in compliance
• A statement denoting the ability of the City to meet its liquidity requirements for the next six months, or provide an explanation as to why sufficient money shall, or may not be, available
O. Policy Adoption
This policy can be revised whenever necessary and will be reviewed by the City Council annually at a public meeting. Any change in the policy shall be reviewed and approved by the City Council at a public meeting.

CITY OF FORTUNA
Treasurer's Report
As of June 30, 2025
% of Effective
INSTITUTION COST VALUE MARKET VALUE Total Yield
Local Agency Investment Fund (LAIF) $ 24,634,349 $ 24,663,869 61.64% 4.40% Treasury Obligation Sweep - US Bank 5,207,382 5,207,382 13.02% 3.91% Post-Employment Benefits Trust - PARS 633,216 633,216 1.58% 5.65% Edward Jones - US Bank Trust 9,464,213 9,511,688 23.77% 4.05% Total Investments $ 39,939,160 $ 40,016,155
US Bank, General Checking $ (5,173) $ (5,173) -0.01%
US Bank, Payroll Checking (2,453) (2,453) -0.01%
Petty Cash/Cashier's Change 1,615 1,615 0.00%
Total Cash with Banks* $ (6,011) $ (6,011) -0.02%
TOTAL INVESTMENT & CASH EQUIVALENTS $ 39,933,149 $ 40,010,144 100.00% Respectfully submitted,
Aaron Felmlee
Treasurer
City of Fortuna
The LAIF, Treasury Obligation Sweep/US Bank, and Edward Jones/US Bank investment statements detailing all investment transactions and balances are on file in the Finance Department and available upon request. *Cash with Bank is shown based upon reconciled book balance.

This report accurately reflects all cash and investments and is in conformity with California Government Code Section 53646 and City of Fortuna's investment policy. The investment program shown herein is sufficient to meet City of Fortuna's expenditure requirement over the next six months.

Business Agenda Item 5b

STAFF REPORT
City Council Business Item
DATE: Sept 15th, 2025
TO: Honorable Mayor and Council Members
FROM: Brian Issa, Public Works Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Selection of Preferred Design Alternative for Kenmar and Ross Hill Road Intersection
STAFF RECOMMENDATION:

Receive staff presentation and recommendation to approve the selection of a roundabout development as the preferred alternative moving forward.

EXECUTIVE SUMMARY:

As the Council is aware, since the 2010 General Plan, the City has been working towards identifying improvements for key transportation infrastructure in the City of Fortuna. Most notably, the City’s focus has been to improve the interchanges with Highway 101 at 12th Street and Kenmar, with a preliminary alternative analysis being completed in 2016, and initial project phase funding being secured for the projects in 2018, 2022 and 2024. After the City secured funding for the 12th Street Preliminary Design phase in 2022, staff shifted some focus to the City’s Kenmar and Ross Hill Road intersection, which also has issues with traffic level of service, vehicle queueing, non-motorized connectivity, safety and the ability to handle traffic volumes as the City continues to develop.

In 2022, staff worked with the City’s on call traffic engineer, GHD, to develop a scope and budget for a Project Study Report (PSR) for the Kenmar and Ross Hill Road Interchange. The intent of the Project Study Report is to analyze preliminary improvement alternatives, ultimately with the hopes of being able to identify a preferred project alternative to move forward into budgeting and engineering design. The PSR looks holistically at the project and covers areas including existing conditions traffic analysis, alternatives development, proposed conditions traffic analysis, environmental constraints, costs and impacts to rights-of-way. Another benefit of developing this report is that is makes this project eligible for funding through the State Transportation Improvement Program (STIP), which is the City’s primary available funding source for projects of this scope and scale. The Council approved a supplemental budget request for this report in 2022, at which time staff began working with GHD to complete the project.

The Draft PSR was presented to Council for approval at the April 7th 2025, meeting. Council approved the PSR but did not select a preferred alternative at that time. The draft project alternative figures have been extracted from the report and are included as Attachment A. Below staff have developed a summary of the proposed project alternatives.

Business Agenda Item 5b

Existing Intersections Problems
This section lists the primary issues that have been identified at the existing signalized intersection.

In the alternative section below, each alternative is noted for how well it addresses these existing issues.

1. Intersection Level of Service – level of service (LOS) is a measure of how long a vehicle waits to move through an intersection. Level of service is measured in ‘grades’ between A-F, with A being a low amount of time, and F being a long time. The existing intersection operates at an average LOS of D in the AM peak hours, and a LOS of C in the PM peak hours. The Fortuna General Plan currently calls out minimum LOS standards for this intersection of D.

Based on future traffic modelling as the City grows, each intersection leg is projected to operate at LOS E in the future, which is below the General Plan target (without improvement).

2. Intersection Queuing – the existing intersection currently has issues with excessive vehicle queue, most notably for the northbound left movement (residents leaving Campton Heights to go to the freeway), and the eastbound Kenmar movements (residents entering town from the freeway). Queues routinely backup to Eel River Drive on Kenmar, or beyond the turn pocket on Ross Hill Road.

3. Safety Considerations – the existing intersection has two primary areas which the City routinely receives complaints for unsafe conditions. The first and most noticeable is the ‘slip lane’ that bypasses the signalized intersection, allowing southbound traffic on the boulevard to immediately access Kenmar Road. At the merger, movement there are often conditions where vehicles do not follow the yield requirements. The second is the southbound merge lane moving up Ross Hill Road. Currently because there are two southbound lanes at the intersection, merging to one on the other side of the intersection, southbound drivers tend to compete with one another to successfully make the merger on the other side of the intersection.

4. Bicycle and Pedestrian Connectivity – while the existing intersection has bike lanes connecting the north/south lanes, there are no dedicated facilities on the east/west lanes.

Additionally, the crosswalks that lead pedestrians towards the freeway end at the City’s main median island, where there are no additional facilities to get non-motorized users to the north side of Kenmar Road.

5. Design Life – as noted above, the intersection is near or at its useful design life, with LOS soon to be unacceptable by current City standards. Intersection requires improvement.

New Considerations
• Shortly after the PSR was approved, the City received a development proposal from a buyer looking to acquire and develop the southern portion of the Mill District which currently takes access from Kenmar road immediately east of the proposed Kenmar/Hwy101 interchange (between the proposed interchange roundabout and the Ross Hill intersection).

The purchase fell through at least partially due to uncertainties surrounding access. The City is currently working with the developer on traffic study that will help determine whether an access off of Kenmar utilizing a left turn pocket is feasible and what scale of development could be served by such access without the queuing distances backing up into the interchange. It’s likely that development of the site with high trip generating uses (such as those in the recent development proposal) will necessitate the parcel taking access from the Ross Hill intersection. The only configuration of the Kenmar Ross Hill intersection that could likely accommodate future access to the site is a roundabout. Staff have verified that, at least conceptually, the proposed roundabout could accommodate an additional leg for access to the mill site with minor changes to the designs provided in the PSR.

Business Agenda Item 5b

• When the PSR was presented in April, the minimum build option seemed like it might be a good option to provide some level of functional improvement at a feasible cost in the short term using STIP funding. With the publication of the most recent round of STIP funding and the decreased funding available for that program, it’s now clear that even the minimum build option is not feasible in the short term. That being the case, staff recommends the selection of the design that provides the most benefit over the longest term.
• With the limited funding available, staff is proposing to apply for STIP funding for the PAED phase of Kenmar/Ross Hill, recognizing that the impacts of improvement to the Kenmar/101 interchange will be impacted by constraints at the existing Ross Hill intersection. In order to ensure that money spent on improving the interchange yield the expected benefits, improvement of the Ross Hill Intersection needs to move somewhat in parallel.

Improvement Alternatives Identified
The following sections describe each of the three alternatives that were explored in the PSR. The final section notes how each of the alternatives compare to each other based on the existing intersection problems noted above. The complete PSR can be found online here. The figure below shows the location of the Ross Hill intersection in relation to the Kenmar Interchange and existing Mill Site Access.

Business Agenda Item 5b

Option A – Signalized Intersection Retrofit
This minimum build project alternative would include a number intersection alterations aimed at addressing as many of the intersection problem as possible for a lower project cost. Project components would include adding an additional inbound lane on eastbound Kenmar, which would help to significantly reduce AM and PM peak hour vehicle queues. The southbound left turn pocket on South Fortuna Boulevard would also be extended to accommodate more vehicles. The ‘slip lane’ to westbound Kenmar is also proposed to be removed, and one of the southbound lanes on the Boulevard would be converted into a right turn onto Kenmar Road at the signal. This alternative would include no improvements to the northbound Ross Hill Road traffic, and therefore operations and future issues would continue to be an issue under this alternative.

Business Agenda Item 5b

Option B – New Signalized Intersection
This alternative would include reconstructing the entire signalized intersection to current design standards while accommodating for projected future traffic volumes. This alternative is graphically shown in Figures 3-4 of Attachment A. For this alternative widening would be required beyond the paved limits on all legs of the intersection. Additionally, given the widening required on Kenmar Road in between the intersection and the highway, the project would likely include some encroachment into the creek channel (and therefore some potential realignment), and the replacement of the main box culvert that takes Mill Creek beneath Kenmar Road.

Business Agenda Item 5b

Option C – Roundabout
The final alternative identified would reconfigure the entire signalized intersection into a roundabout, similar to what is being proposed for the Kenmar and 12th Street Interchanges. This alternative is graphically shown in Figures 5-6 of Attachment A. As shown the roundabout would almost entirely fit within the existing paved limits, with only minor widenings required on the City-owned medians near the Gateway Sign and on the east side of the intersection. One key difference of this roundabout as compared to the ones proposed at the highway interchanges is that due to traffic volumes, the northbound Ross Hill Road/Fortuna Boulevard movement has two entry lanes. As such, although still standard in roundabout design and construction there would be more complexity to the operation of this roundabout than for a conventional single-lane roundabout.

Note that addition of another leg to provide Mill Site access will require adjustments to the location and size of the facility.

Comparison of Alternatives
The table below provides a comparison for how each of the proposed alternatives addresses the main existing issues noted above. It should be noted that this table is not included in the PSR, this has been developed by staff to help aid the Council and the public in understanding the tradeoffs for various alternatives.

Business Agenda Item 5b

Table 1. Comparison of project alternatives.

Alternative Estimated
Cost
Average
Level of
Service
Queuing Safety Non-Motorized
Accessibility Design Life1
Option A
Minimum Build
Signal
$2.9 M C/D
Medium – almost all
movements contained within
available intersection storage,
with the exception of
northbound traffic on Ross
Hill Road. Kenmar operations
do not impact highway
interchanges
Medium to
Good
Medium – improves
east/westbound bike and
pedestrian accessibility
20-30 years for
improved
portions, less for
unimproved
portions
(northbound
Ross Hill Road).

Life may depend
heavily on what
happens at the
Mill Site
Option B
New Signalized
Intersection
$12.6 M C
Medium – almost all
movements contained within
available intersection storage.

Kenmar operations do not
impact highway interchanges
Good
Good – bicycles and
pedestrians serviced for all
routes
30-50 years. Life
may depend
heavily on what
happens at the
Mill Site
Option C
New
Roundabout
$8.7 M A Minimal – none exceeding
available storage Good
Good – bicycles and
pedestrians serviced for all
routes
50-year or
beyond under all
potential
development
scenarios

1. Estimated based on engineering judgement. Current PSR only projects traffic volumes through 2045.

Business Agenda Item 5b

Staff recommend that the Council select a preferred project alternative, taking into consideration the comparison of alternatives and discussion provided above, and direct staff to submit the Kenmar Ross Hill intersection Project Approval and Environmental Documentation (PAED) phase for funding through the 2026 STIP.

FINANCIAL IMPACT:

Future fiscal impacts that will result from the PSR specifically pertain to the preferred improvement alternative identified by the Council. As shown in the table in the executive summary section, or in the PSR itself, future costs for project improvements range from approximately $2.5 million to $11 million. With a preferred alternative identified, staff will work to develop a funding plan. Regardless of the alternative selected, it’s likely that the majority of funding will come from grants or future STIP funding.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff

2. Open and close Public Comment

3. Select a preferred alternative and make a motion to direct staff to pursue potential funding opportunities.

Sample Motion: I make a motion to select Option X as the City’s preferred design alternative for the intersection of Kenmar and Ross Hill Roads and direct staff to submit the PAED phase of design for funding in the upcoming 2026 STIP cycle.

Business Item 5c

STAFF REPORT
City Council Business Item
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Matthew A. Eberhardt, Interim Chief of Police
THROUGH: Amy Nilsen, City Manager
SUBJECT: Approve a Supplemental Budget Request for $11,333.85 to Address Immediate Cyber Security Mandates for the Fortuna Police Department STAFF RECOMMENDATION:

Approve a Supplemental Budget Request for $11,333.85, to increase the Polic Department’s budget, to address immediate cyber security mandates.

EXECUTIVE SUMMARY:

The Fortuna Police Department requires a secure California Law Enforcement Telecommunications System (CLETS) connection to operate. The California Department of Justice (DOJ) establishes security standards for CLETS connections.

Currently, the department operates on Microsoft Windows 10 Pro. However, as of October 1, 2025, Microsoft will no longer provide security updates for this operating system. To maintain DOJ compliance and continue operating CLETS, the department must upgrade all computers to Microsoft Windows 11 Pro.

Following consultation with our IT provider, Nylex it was determined that 10 computers and one server cannot support Windows 11 Pro due to outdated hardware. These units must be replaced.

The cost to replace the equipment and ensure compliance is $21,333.85. The department sought grant funding to cover this expense, but the request was unsuccessful.

During the FY 25/26 budget process, the department allocated $10,000 for computer replacement.

To fully address cybersecurity requirements, the Fortuna Police Department is requesting a transfer of $11,333.85 from the city’s general fund to Fund 100-5500-2000 (Department Supplies). This transfer, combined with the budgeted amount, will provide the funds necessary to replace the aging computers and maintain CLETS compliance.

FINANCIAL IMPACT:

The financial impact is $11,333.85 from the general fund.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff Business Item 5c

2. Open and close Public Comment

3. Motion to approve a supplemental budget request for $11,333.85 to fund immediate cyber security needs. Roll call vote.

ATTACHMENTS:
• Supplemental Budget Request
• Quote from Nylex
Requesting Department: Packet #
JV #
Fund Name/s Amended: Prepared By
Checked By
Fund #/s Amended: Post Date
New Budget Appropriation Intra‐Department Budget Transfer Additional Budget Appropriation Other Budget Transfer

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

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

PURPOSE
Department Head: Date:

Finance Director: Date:

City Manager: Date:

CITY OF FORTUNA
SUPPLEMENTAL BUDGET REQUEST
x
Date 9/10/2025
Estimate Number 4591036
P.O. Box 204 Eureka, CA 95501
707-443-4944
CA LIC # 1010754
DIR# 1000035852
City of Fortuna
621 11th St,
Fortuna, CA 95540

DESCRIPTION QTY COST TOTAL
COF-PD Win11 Computer Update
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Lenovo Legion T7 34IAS10, Intel Core Ultra 9 285K (E-cores up to 4.60 GHz, 36 MB), W11P64 ENG, 64.0GB, 2x1TB SSD
M.2 2280 PCIe Gen4 TLC, Gray, 1xNVIDIA GeForce RTX
5080 16GB, BT 5.1 1 $3,799.17 $3,799.17
Contact our office to discuss the benefits of transitioning to a Service Level Customer
ESTIMATE VALID FOR 15 DAYS. SUBTOTAL $19,350.43
PARTS AVAILABLE WHILE SUPPLIES LAST. TAXES $1,983.42
Sales Tax Rate $0.00
Eureka (10.25%) TOTAL $21,333.85

ESTIMATE

SHIPPING / HANDLING

SHIPPING MAY BE BILLED SEPARATELY
Prices and Equipment Models are Subject to Change
Study Session Item 6a

STAFF REPORT
City Council Study Session
DATE: September 15, 2025
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Mobile Home Rent Stabilization
PURPOSE:

The purpose of this Study Session is to provide the City Council with an overview of rent stabilization measures for mobile homes, and to receive input and direction from the Council on options related to a mobile home rent stabilization ordinance.

BACKGROUND:

A mobile home space rent stabilization ordinance applies to mobile home residents who own a mobile home and rent the site in a mobile home park on which a home is placed. A rent stabilization ordinance, as discussed in further detail below, regulates rent increases for the mobile home space while at the same time providing park owners with reasonable returns on their investment in the park.

On July 17 City staff and the Mayor Pro Tem met with citizens from the Royal Crest Mobile Home Park to listen to their concerns regarding rent increases that were becoming unaffordable. On July 21, 2025, the City Council received significant public comment from the community on the need for a mobile home rent stabilization ordinance. In addition, prior to the July 21 City Council meeting the Council received a number of email communications from Royal Crest Mobile Home Park tenants. In addition, Royal Crest residents have continued to attend City Council meetings advocating for rent stabilization.

DISCUSSION:

California Mobile Home Residency Law
In response to the special situation of mobile home park residents (whose homes are, practically, immobile), California has adopted some Statewide laws which provide special protections for mobile home park residents (California Civil Code Chapter 2.5: The Mobilehome Residency Law (MRL)). The MRL regulates rental agreements for mobile home spaces, park rules and regulations, and sale of mobile homes. The MRL does not regulate rent stabilization and leaves that up to local jurisdictions but addresses three aspects of mobile home residency that bear upon the issue of rent stabilization:

1. First, the MRL requires park management to provide residents at least 90 days’ notice before implementing a rent increase.

Study Session Item 6a

2. Second, the MRL limits the reasons the park owner may use to terminate a lease of a mobile home space or deny its renewal to seven specific reasons: (1) failure to comply with local or State law or ordinances; (2) annoying conduct to other homeowners or residents; (3) conviction for prostitution; (4) failure to comply with reasonable park rules and regulations; (5) nonpayment of rent, utilities, or other reasonable charges; (6) condemnation of the park by a public agency or utility; and (7) change of use of park or portion thereof. Management is required to specify any rule broken and give the resident seven days to correct the rule violation. If not corrected, management can start an unlawful detainer action to evict the tenant from the space. In general, the resident has the choice to sell the mobile home “in place” or remove it from the park, although the latter is typically impractical as moving costs can exceed the value of the home and there may be no place to move it to.

3. Third, the MRL allows cities to regulate those spaces held out for rent before January 1, 1990 and exempts from rent stabilization spaces with certain long-term leases over 12 months and spaces where the mobile home is not the owner’s principal residence and the mobile home has not been rented out to another party (i.e., vacation homes). It is the City’s understanding the four mobile home parks in Fortuna began operating before 1990, and so it appears likely that most of the 281 spaces in Fortuna could be subject to rent regulation.

Investment in Residence
Mobile homeowners, unlike apartment tenants or residents of other rental units, are in the unique position of having made a substantial investment in a residence which is located on a rented or leased parcel of land (the mobile home park) either through acquisition of a mobile home from a prior owner or through purchase of a new mobile home which is then assembled on-site or delivered there by the vendor. The investment commonly includes the purchase of the mobile home (varying in price depending on the size and amenities, up to $150,000 or more) and/or the cost of installing the mobile home on its space and installing related improvements, such as a foundation, carports, and integrated landscaping (depending on the job and local contractor costs, up to $20,000 or more). Alternatively, the investment consists of the purchase of an “in-place” mobile home (varying in price from $27,000 to $185,000 depending on size, space rent, condition, and location). The mobile home owner rents a space in a mobile home park upon which the mobile home is located. The investments of mobile home park residents can only be realized by continuing occupancy in the mobile home or by an “in-place” sale/transfer of the mobile home since:
• Physical relocation of mobile homes is costly;
• Relocation within other mobile home parks is difficult because there are frequently no vacant spaces in mobile home parks;
• Park owners generally will not permit older mobile homes to be moved into their parks when they do have vacant spaces for rent; and
• The supply of mobile home park spaces in California is either stable or declining. Mobile home park construction in urbanized areas of California virtually ceased by the early 1980s as alternative land uses became more profitable and land use policies continually tightened restrictions on the construction of new mobile home parks.

Study Session Item 6a

Given the substantial investment by mobile homeowners in the physical structure of the mobile home but the lack of mobility or alternative options to move that physical structure from an existing mobile home park, mobile home park owners have unequal power over mobile home owners to charge high/excessive space rent increases.

Space Rent
In addition to the substantial investment made by the mobile homeowner (which might require mortgage payments), rent must be paid for a space in a mobile home park. While space rent is required to continue occupancy, just like an apartment, overall affordability of the housing depends on rent, utility and service charges, and the cost of the mobile home. Due to the unique nature of the mobile home space tenancies, the amount paid for space rent has a direct correlation to the value of the mobile home. As space rents increase, the mobile home will depreciate in value (loss in equity) while the land value appreciates (gain in equity). The general industry rule of thumb is that for every $10 per month space rent increase, $1,000 in mobile home equity is lost. This is a key rationale why, besides State law, local laws have been incorporated regulating the rate at which space rents can be increased. Without regulation, park owners can strip homeowners of the values of their homes, sometimes buying them and placing them in the rental market or reselling them.

Rent Stabilization in Other Jurisdictions
The MRL does not provide for rent stabilization regulations, but leaves it up to local jurisdictions with some limitations, as discussed earlier. Over time, approximately 100 jurisdictions (out of 483 cities and 58 counties) in California have adopted some type of rent stabilization for mobile home park spaces to protect mobilehome owners to preserve the affordable housing which parks provide.

Most mobile home rent stabilization regulations in California apply to space rent alone. If a tenant were to rent a mobile home from either a private owner or a mobile home park owner, rental of the mobile home itself would not be regulated. Local rules usually apply to all mobile home spaces in a city or county with exceptions for mandatory exemptions under State law (e.g., spaces built after 1990 and spaces used for vacation homes are exempt). Typically, the rent stabilization ordinances tie annual allowable rent increases to the percentage increase in the Consumer Price Index (CPI). The MRL also does not regulate rent increases in case of an “in-place” sale of a mobile home. This allows mobile home park owners to reset the rent at market in case of an “inplace” sale/transfer (vacancy decontrol). Most local ordinances adopted some type of vacancy control and do not permit additional rent increases or alternatively limit rent increases to 10 percent or less when a mobile home is sold in place. This prevents a loss of affordable housing and reduces incentives to encourage homeowners to move away. Under all ordinances, park owners are entitled to petition for additional rent increases in order to obtain a fair return on investment, as required by the federal Constitution. The below chart provides an overview of mobile home rent stabilized jurisdictions in Humboldt County and key policy components.

Table 1: Mobile Home Rent Stabilization Ordinances in Other Local Jurisdictions City County Yes/No Parks
with MH
Spaces
Spaces Annual
General
Adjustment
of Rent
Vacancy
Control
Arcata
95521
Yes 8 618 Annually,
100% of the
CPI
No
Study Session Item 6a

Blue Lake
95525
No 2 41 N/A N/A
Eureka
95501
No 6 154 N/A N/A
Ferndale
95536
No 1 13 N/A N/A
Fortuna
95540
No 4 281 N/A N/A
Rio Dell
95562
No 5 94 N/A N/A
Trinidad
95570
No 7 80 N/A N/A
County of
Humboldt
– includes
cities
Yes1 97 3018 Annually,
100% of the
CPI
No
Rent Stabilization in Fortuna
According to the California Department of Housing and Community Development (HCD) Mobile home/RV Parks database there are 115 parks in Humboldt County but only 97 of the parks have mobile home spaces. The others may be campsites or house RVs. These 97 parks have 3,018 mobile home spaces that are licensed and monitored by the State Department of Housing and Community Development (HCD). According to HCD, the City of Fortuna contains 4 mobile home parks within its city limits for a total of 283 spaces. Fortuna’s four parks, which vary in size from 3 to 205 spaces, are located at:
• 544 Fortuna Boulevard – 3 spaces
• 2432 Newburg Road – 30 spaces
• 365 Fortuna Boulevard – 43 spaces
• 2283 Crest Drive – 205 spaces
Rent stabilization mechanisms are relatively consistent with Council’s goals through the Housing Element and General Plan to: (1) Provide decent housing for all persons regardless of age, sex, race, marital status, ethnic background, income, or arbitrary factors; (2) Provide adequate housing by location, type, price, and tenure, including for those of low and moderate income; and (5) Improve and conserve existing residential neighborhoods.

It has been a long time since new mobile home parks have been developed. Many mobile home parks that were originally developed in low-density areas are now surrounded by higher-density and residential uses, and the underlying lands have increased in value. The increased value of land as well as increases in utilities and insurance has also increased pressure on rent prices. The impact of rent increases are considerable, bearing in mind that mobile home residents often live on a fixed income, and each rent increase is money not being spent on mortgage or other living costs.

Table 2 below analyzes rent trends at Royal Crest Mobile Home Estates from 2012 to 2025.

Average.
1 Regulates spaces in mobile home parks in the unincorporated area with 10 or more spaces.

Study Session Item 6a

Table 2: Royal Crest Mobile Home Increases
Rent
Effective
Date
Space
Rent
Annual
Increase $
Value
% Increase CPI - San
Francisco Bay
Area, August
2012 $419
2013-
Sept. $441 $22.00 5.25% 2.00%
2014-Oct. $462 $21.00 4.76% 3.00%
2015-Oct. $487 $25.00 5.41% 2.60%
2016-Oct. $509 $22.00 4.52% 3.10%
2017-Oct. $535 $26.00 5.11% 3.00%
2018-Oct. $570 $35.00 6.54% 4.30%
2019-Nov. $609 $39.00 6.84% 2.70%
2020-Dec. $669 $60.00 9.85% 1.60%
2021-Dec $699 $30.00 4.48% 3.70%
2022 $699 $0.00 0.00% 5.70%
2023-Jan. $733 $34.00 4.86% 3.40%
2024-Jan. $777 $44.00 6.00% 2.70%
2025-Jan. $822 $45.00 5.79%
The average annual increase is $31.00 per year or 5.34%. The highest increase was $60 in 2020 (9.85%), significantly above CPI (1.6%). In most years, rent increases exceeded inflation, especially in 2020 and 2019. Cumulative growth in rent rose from $419 in 2012 to $822 in 2025 — a 96% increase over 13 years.

Options for City Council Consideration
a. Do not pursue a City initiated mobile home rent stabilization ordinance.

Your city council may choose not to implement a mobile home rent stabilization ordinance.

However, this decision could prompt constituents who support such a measure to pursue a voter-initiated ballot initiative. In California, this process requires submitting proposed ballot language and collecting valid signatures from at least 10 percent of the city’s registered voters. If these requirements are met, the city council would be obligated to place the initiative on the next general election ballot, perhaps November 2026. b. Mediate between the tenants of Royal Crest and Storz Management in order to develop a Memorandum of Understanding
On August 28, city staff—including the Mayor—met with representatives from park operator Storz Management to gain a clearer understanding of the recent rent increases implemented at Royal Crest. Royal Crest cited increases in operational costs such as insurance, utilities, interest, bluff maintenance, and fire code related improvements as explanation for rent increases.

Study Session Item 6a

One potential option is for the City Council to consider a Memorandum of Understanding between the City of Fortuna and owners of mobile home parks. A potential long-term MOU could include language defining the annual rent increase, pass through adjustments such as capital improvements, and a rent subsidy program.

An MOU would be designed as an alternative to a rent stabilization ordinance, aiming to:
• Prevent excessive rent increases for 10 or more years based on an annual allowable rent increase, likely tied to the Consumer Price Index. • Ensure park owners receive a reasonable return on investment. • Promote communication between park owners, residents, and the city. • Continuation of pass-through costs such as capital improvements (with resident approval), capital replacement (with notice and amortization). • Potentially provide a rental subsidy program
• Provide annual reports to the City detailing rent increases and any rental subsidies.

An MOU between the City of Rancho Cordova (Sacramento County) and its mobile home park owners is attached under Attachment A. Investment in an MOU would be currently budgeted city staff time.

In addition, if your City Council chooses this option, the Council may want to consider the creation of an ad hoc committee to participate in MOU negotiations with the mobile home park owners.

On September 11, the City received an additional communication from Storz Management, which is attached as Attachment B. The communication indicates that they are willing to limit an upcoming rent increase to the San Francisco Bay Area Consumer Price Index (CPI) and are open to negotiating a Memorandum of Understanding (MOU). c. Set up a rent conciliation service in lieu of rent stabilization A rent conciliation service is typically a local government or nonprofit program designed to help resolve disputes between landlords and tenants—especially in areas that do not have formal rent stabilization laws.

Rent conciliation is a voluntary mediation process where both parties—landlord and tenant—work with a neutral third party to resolve disagreements over issues such as:
• Rent increases
• Lease terms
• Repairs and maintenance
• Eviction threats
• Security deposit disputes
A mobile home rental assistance program does exist through Manufactured Housing Education Trust for Royal Crest residents.

A City coordinated rent conciliation service would require the investment of General Fund dollars from reserves. Royal Crest does offer a rental assistance program through Study Session Item 6a

the Manufactured Housing Educational Trust, Mobile Home Assistance Program and must meet specific criteria to qualify.
d. Develop and adopt an ordinance to require the reporting of rent increases which exceed CPI
This option would require development and adoption of an ordinance that would require mobile home park owners to submit annual reporting on rent increases above CPI. This option provides the City an opportunity to gather information to justify potential regulation at a later date.
e. Develop and adopt a Mobile Home Rent Stabilization Ordinance This option would require development and adoption of an ordinance that would regulate rent increases to likely no more than the CPI. While this option is what is currently being advocated for by some of your constituents, the likelihood of litigation following adoption of such an ordinance is high. Rent control litigation is excluded from liability coverage according to the Liability Memorandum of Coverage for California Intergovernmental Risk Authority, Section V – Exclusions, T. Land-Use and Other Regulation, the approval, disapproval, or enforcement of any rent control ordinance.

A rent stabilization ordinance provides protections, ensuring that mobile home residents are not subjected to excessive rent increases and may include provisions such as:
o Base Rent: The ordinance may set a base rent for mobile homes, which is typically based on rent charged at a certain date, often before the ordinance is adopted to avoid encouraging last-minute rent increases. o Rent Increases: The ordinance may limit the amount a mobile home park owner can increase the rent for a mobile home space to 100% of or another percentage of the CPI.
o Notice Requirements: The ordinance may require park management to provide at least 90 days' advance written notice before any rent increase (although, as noted above, state law already does so).
o Dispute Resolution: The ordinance may include provisions for residents to report violations of the rent stabilization ordinance and provide provisions for mobile home park owners to receive fair return on their investment by seeking an increase above the CPI when justified by costs of maintaining a park.

The adoption of a rent stabilization ordinance can include a fee the City may charge to mobile home park residents for the administration of the rent stabilization program.

Attachment E is the City of Arcata’s Mobile Home Rent Stabilization ordinance.

Storz Management’s and the Save our Seniors Advocacy Group’s recent communications with the City are included in Attachments B through D.

Study Session Item 6a

FINANCIAL IMPACT:

There is no immediate financial impact in the preparation and presentation of this study session as staff costs are included in the fiscal year 2025-26 budget. There are costs associated with each of the options for consideration, mostly in General Fund staff time and up to and including potential litigation.

RECOMMENDED COUNCIL ACTION:

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

2. Open and close Public Comment.

3. City Council provide feedback to staff on the following mobile home rent stabilization options:
a. Do not pursue a City initiated mobile home rent stabilization ordinance. b. Mediate between the tenants of Royal Crest and Storz Management in order to develop a Memorandum of Understanding.
c. Set up a rent conciliation service in lieu of rent stabilization. d. Develop and adopt an ordinance to require the reporting of rent increases which exceed CPI.
e. Develop and adopt a Mobile Home Rent Stabilization Ordinance ATTACHMENTS:

Attachment A – MOU between City of Rancho Cordova and mobile home park owners Attachment B – September 11, 2025 Storz Communication
Attachment C - Mobile Home_Storz Communication
Attachment D– Mobile Home_Storz Communication Exhibits
Attachment E – Save our Seniors submitted Draft Rent Stabilization Ordinance Attachment F – City of Arcata Mobile Home Rent Stabilization Ordinance Recording Requested by
and When Recorded, Return to:

City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
Attention: City Clerk

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Il 111111111111111111111111111111111111 11111
Sacramento County
Donna Allred, Clerk/Recorder
�c# 202306280546
6/28/2023 12:02:26 PM
BML
Titles 1
Pages 23
fees
Taxes
PCOR
Paid
(SPACE ABOVE THIS LINE RESERVED FOR

RECORDER'S USE)

MOBILE HOME PARK MEMORANDUM OF UNDERSTANDING
THIS MOBILE HOME PARK MEMORANDUM OF UNDERSTANDING (the "MOU") is/ entered into as of June 1, 2023 ("Effective Date") by and among the CITY OF RANCHO CORDOVA (the "City"), a California municipal corporation, and the owners ("Owners") of the mobile home parks ("Parks") identified on Exhibit A. Each individual Owner of a park will execute a substantively identical version of the MOU. This copy of the MOU is executed by the Owner of that Park commonly known as: Mobil Country Club ("Park").

RECITALS
This Agreement will be between the City and each park within the City of Rancho Cordova and shall contain substantively identical terms for each park.

This Agreement shall only be effective if all park owners within the City of Rancho Cordova enter into an agreement with the City; the Effective Date of this Agreement shall be when the last park owner in the City signs an Agreement with the City.

In order to avoid the negative consequences of a rent stabilization ordinance, including potential costly litigation and to maintain cordial relationships with their tenants, the Owners have agreed to attempt to negotiate a memorandum of understanding with the City that will (I) apply the provisions of this MOU to all existing tenants including good faith efforts to offer to amend the CPI formula rent increase provisions in any existing long term lease to conform to the terms of this MOU; and (2) waive during the term of this MOU any right an Owner would have had under a rent stabilization ordinance to apply for a Vega adjustment or an individual rent increase to maintain a fair return. In the event the Park becomes subject to a rent stabilization law or ordinance at some point after the Effective Date of this MOU, nothing in this MOU shall prevent Owner from applying for any rent increase Owner may be entitled to, including a Vega adjustment and/or a fair return adjustment.

RANCHO CORDOVA MOU April 17, 2023 P.l
Contract No: 2023-77
$0.00
$0.00
$0.00
$0.00

DRAFT PROPOSED

CITY OF FORTUNA MOBILE HOME RENT STABILIZATION

PURPOSE
(a) It is the purpose of this Ordinance to:
(b) Prevent excessive and unreasonable increases in mobile home park space rents. (c) Prevent exploitation of the shortage of available mobile home park spaces in the County and neighboring areas.
(d) Enable mobile home owners to preserve the equity in their mobile homes. (e) Permit mobile home park owners to receive a fair return. (f) Help preserve affordable mobile home space rents within the City of Fortuna.

Findings
(a) There are at least 2 mobile home parks with a total of approximately 253 spaces located within the incorporated boundaries of the City of Fortuna, comprising five percent (5%) of the housing units in the City. This is higher than the State average of four percent (4%).
(b) The Fortuna General Plan Housing Element provides for the following goals:

H-3.4 Make a maximum effort to promote affordable housing for retired Fortuna residents, particularly those with limited incomes. (senior mobile homes constitute

57.10% of senior housing available in Fortuna)
H-5  Improve and conserve residential neighborhoods
H-6  Strive to reduce the cost of housing
(c) During recent years, rent increases for most lot fees in Fortuna mobile home parks have substantially exceeded the percentage increase in the Consumer Price Index (CPI).
1 (d) As a practical matter, the mobile homes in Fortuna’s mobile home parks are “immobile” homes. A large percentage of the mobile homes were manufactured before 2000. Very few mobile home parks in the area will accept mobile homes that are more than a few years old. The cost of moving and setting up a mobile home in a park is substantial. About half of the mobile homes are “doublewide” structures that consist of two (2) ten- or twelve-foot-wide sections joined together when installed on top of a simple foundation. Mobile homes are rarely moved after they are placed in mobile home parks. When mobile home park residents move they sell their mobile homes “in place” on the rented space.

Special characteristics of mobile home park tenancies generally include the following:
(1) The “historical” investments of the mobile home owner (tenants) in mobile homes in mobile home parks generally exceed those of the landlord park owners. (2) Physical relocation of mobile homes is costly.
(3) Relocation is practically impossible because there are virtually no vacant spaces in mobile home parks.
(4) Park owners generally will not permit older mobile homes to be moved into their parks when they do have vacant spaces for rent.
(5) The supply of mobile home park spaces in California is either frozen or declining.

Mobile home park construction in California virtually ceased by the early 1980’s as alternative land uses became more profitable and land use policies continually tightened restrictions on the construction of new mobile home parks. (6) The investments of mobile home park residents in their mobile homes are “sunk” costs. The benefits of these investments can only be realized by continuing occupancy or by an “in-place” sale of the mobile home.
(e) Court opinions and academic reviews have repeatedly noted the captive nature of mobile home park tenancies. In 2001, the California Supreme Court concluded:
“THE MOBILEHOME OWNER-MOBILEHOME PARK OWNER RELATIONSHIP:

This case concerns the application of a mobilehome rent control ordinance, and some background on the unique situation of the mobilehome owner in his or her relationship to the mobilehome park owner may be useful. ‘The term ‘mobilehome’ is somewhat misleading. Mobile homes are largely immobile as a practical matter, because the cost of moving one is often a significant fraction of the value of the mobile home itself. They are generally placed permanently in parks; once in place, 2 only about 1 in every 100 mobile homes is ever moved. [Citation.] A mobile home owner typically rents a plot of land, called a ‘pad,’ from the owner of a mobile home park. The park owner provides private roads within the park, common facilities such as washing machines or a swimming pool, and often utilities. The mobile home owner often invests in site-specific improvements such as a driveway, steps, walkways, porches, or landscaping. When the mobile homeowner wishes to move, the mobile home is usually sold in place, and the purchaser continues to rent the pad on which the mobile home is located.’ (Yee v. Escondido (1992) 503 U.S. 519, 523, 112 S.Ct. 1522, 118 L.Ed.2d 153.) Thus, unlike the usual tenant, the mobilehome owner generally makes a substantial investment in the home and its appurtenances-- typically a greater investment in his or her space than the mobilehome park owner. [cite omitted] The immobility of the mobilehome, the investment of the mobilehome owner, and restriction on mobilehome spaces, has sometimes led to what has been perceived as an economic imbalance of power in favor of mobilehome park owners.” (Galland v. Clovis, 24 Cal.4th 1003, 1009 (2001)).

The Florida Supreme Court concluded that mobile home owners face an “absence of meaningful choice” when space rents increase: “Where a rent increase by a park owner is a unilateral act, imposed across the board on all tenants and imposed after the initial rental agreement has been entered into, park residents have little choice but to accept the increase. They must accept it or, in many cases, sell their homes or undertake the considerable expense and burden of uprooting and moving. The ‘absence of meaningful choice’ for these residents, who find the rent increased after their mobile homes have become affixed to the land, serves to meet the class action requirement of procedural unconscionability.” Lanca Homeowners, Inc. v. Lantana Cascade of Palm Beach, Ltd., 541 So. 2d 1121, 1124 (Fla.), cert. denied, 493.
(f) In response to the special situation of mobile home park residents, California has adopted landlord-tenant laws which provide special protections for mobile home park tenants. (California Civil Code Section 798.) In addition, approximately ninety (107) jurisdictions in California have adopted some type of rent control of mobile home park spaces. Typically the rent control ordinances tie annual allowable rent increases to at least a large portion of the percentage increase in the Consumer Price Index (CPI)--All Items. Most such ordinances do not permit additional rent increases (vacancy decontrol) or limit rent increases to ten percent (5%) or less when a mobile home is sold “in place”.

Under all ordinances, park owners are entitled to petition for additional rent increases in order to obtain a fair return.
(g) Many of the mobile home owner households have “very low” income. In 2008, the income ceilings for households classified as “very low” income under federal HUD 3 standards (fifty percent of area median income or under) are twenty-two thousand, seven hundred dollars ($22,700.00) for one-person households and twenty-five thousand, nine hundred dollars ($25,900.00) for two-person households. The income ceilings for households classified as “extremely low” income (thirty percent (30%) of area median income or under) are thirteen thousand, six hundred dollars ($13,600.00) for one-person households and fifteen thousand, five hundred dollars ($15,500.00) for two-person households. According to demographic, housing and economic data compiled by the Federal Reserve Bank of San Francisco in 2014, sixty-two percent (62%) of Humboldt County (including Fortuna) renters spend more than thirty percent (30%) of their income on rent, making them “cost-burdened renters.” Sixteen percent (16%) of Humboldt County residents have a disability, and all but one city within the County had median income below the state average of $61,400.00 as of 2012. (h) Mobile home owners, unlike apartment tenants or residents of other rental units, are in the unique position of having made a substantial investment in a residence which is located on a rented or leased parcel of land. Their investment commonly includes the purchase of the mobile home and the cost of installing the mobile home on its space along related improvements such as a foundation, carports, and integrated landscaping.

Excessive rent increases may drastically reduce or eliminate mobile home owners’ equity in their mobile homes, causing mobile home owners to lose a substantial portion or all of their investments.
(i) The “maintenance of net operating income” (MNOI) standard is a “fairly constructed formula,’ which provides a fair return. (Rainbow Disposal Co. v. Escondido Mobilehome Rent Review Bd., 64 Cal.App.4th 1159 (1998).
(j) Adoption of this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2)-the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, and Section 15060(c)(3)-the activity is not a project as defined in Section 15378 of the CEQA Guidelines because it has no potential for resulting in physical change to the environment, directly or indirectly
Definitions
(a) “Consumer Price Index” means the Consumer Price Index-- All Items for all urban consumers for the San Francisco-Oakland-San Jose area (base year equals 1982-1984) as reported by the Bureau of Labor Statistics of the United States Department of Labor.
(b) “In-place transfer” means the transfer of the ownership of a mobile home with the mobile home remaining on the mobile home lot following the transfer. 4 (c) “Landlord” means a mobile home park owner, mobile home owner, lessor or sub lessor who receives or is entitled to receive rent for the use and occupancy of any rental unit or portion thereof, and the agent, representative or successor of any of the foregoing.
(d) “Mobile/manufactured home” means a structure transportable in one or more sections, designed and equipped to contain not more than one dwelling unit, to be used with or without a foundation system or any habitation such as a trailer, recreational vehicle or “park model” unit occupied as a primary residence for 9 months or more per year.
(e) “Mobile home park” means any area or tract of land where two or more mobile home lots are rented or leased, or held out for rent or lease, to accommodate mobile homes used for human habitation for permanent, as opposed to transient, occupancy. (f) “Rent” means any consideration, including any bonus, benefit or gratuity, demanded or received by a landlord for or in connection with the use or occupancy, including housing services, of a rental unit or in connection with the assignment of a lease or in connection with subleasing of the rental unit.
“Rent” shall not include:
(1) Utility charges for charges for sub-metered gas and electricity. (2) Charges for water, refuse disposal, sewer service, and/or other services which are either provided and charged to mobile home residents solely on a cost pass-through basis and/or are regulated by state or local law.
(3) Any amount paid for the use and occupancy of a mobile home unit (as opposed to amounts paid for the use and occupancy of a mobile home space). (4) Charges for laundry services.
(5) Storage charges.
(g) “Rent increase” means any rent demanded or paid by a mobile home owner or mobile home tenant in excess of rent paid for the rental unit immediately prior to such demand or payment. Rent increase includes any reduction in the services provided to a mobile home resident or transfer of the cost without a corresponding reduction in the amount demanded or paid as rent.
5 (h) “Rental agreement” means a written agreement between a landlord and a mobile home owner or mobile home tenant for the use and occupancy of a rental unit to the exclusion of others.
(i) “Rental unit” means a mobile home or mobile home lot, located in a mobile home park in the County of Humboldt, which is offered or available for rent. Rental unit includes the land, with or without a mobile home, and appurtenant buildings thereto and all housing services, privileges and facilities supplied in connection with the use or occupancy of the mobile home or mobile home lot.
(j) “Service reduction” means a decrease or diminution in the basic service level provided by the park since January, 2016, including but not limited to services the park owner is required to provide pursuant to:
(1) California Civil Code Sections 1941.1 and 1941.2.
(2) The Mobile Home Residency Law, California Civil Code Section 798 et seq. (3) The Mobile Home Parks Act, California Health and Safety Code Section 18200 et seq.
(4) The landlord’s implied warranty of habitability.
(5) An express or implied agreement between the landlord and the resident Applicability of Ordinance.

This Ordinance shall be applicable to all mobile home park spaces within the incorporated areas of the City of Fortuna.

Exemptions from This Ordinance.
(a) The following exemptions from local rent regulations are provided by state law:
(1) New mobile home park spaces which are exempted pursuant to Civil Code Section 798.45.
(2) Spaces which are not the principal residence of the mobile home owner, which can be exempt pursuant to Civil Code Section 798.21.
6 The purpose of this subsection is to provide information about exemptions based on state law which preempts local law, rather than to provide any basis for an exemption based on this Ordinance.
(b) This Ordinance shall not apply to mobile homes or mobile home parks owned or operated by any governmental agency or any rental unit whose rent is subsidized pursuant to a public program that limits the rent that can be charged for the mobile home.
(c) This Ordinance shall not be applicable to spaces in mobile home parks with less than ten (10) spaces
Permissible Rent Increases.

No rent in excess of rent in effect on December 31, 2026, may be charged unless authorized by one of the following sections of this Ordinance: (Automatic annual increases based on increases in the Consumer Price Index), (Allowable rent following the expiration of an exempt lease), (Allowable rent increases upon in-place transfers of mobile home ownership), (Fair return standard), or (Rent increases for majority resident agreement for new capital improvements)..

Automatic Annual Increases Based Upon Increases in the Consumer Price Index (CPI). (a) Commencing in calendar year 2026, on or after May 1st of each year the rent may be increased over the allowable rent as of May 1st of the prior year by seventy-five percent (75%) of the percentage increase in the CPI last reported as of January 30th in the current year over the CPI last reported as of January 30th in the prior year. The percentage amount of said increase shall be rounded to the nearest one-quarter percent. There shall be a cap of 5% if the percentage increase of the CPI is higher. (b) Notice of Annual Allowable Annual Rent Increase.
(1) The allowable annual rent increase shall be annually calculated by the City Council and posted by February 15th of each year in the City Hall Building, on the City’s website, and posted on a notice board in each mobile home park by the park owner, and shall be mailed by City to each park owner and to the mobile home owner representative in each park.
(2) Notice in Mobile Home Parks. A copy of the City’s notice shall also be posted in a prominent place by each park owner in each mobile home park within three (3) work days after it is received by the park owner.
7 (c) In the event that the CPI decreases, no rent decrease shall be required pursuant to this section. In the event that the CPI decreases by more than two percent (2%) in any year, said decrease shall be subtracted from the following annual increase(s) allowable pursuant to this section.
(d) Increases authorized pursuant to this section may be implemented by the landlord at any future time, subject to the precondition that by January 30th of each year the park owner notify the mobile home owner of each increase allowed pursuant to this section which has not been implemented and notification that the banked increase may be added to the rent at a future date.
(e) Compliance with State Law. Rent increases permitted pursuant to this section shall not be effective and shall not be demanded, accepted, or retained until the landlord has given the notice required by state law.

Allowable Rent Following Expiration of an Exempt Lease
In the event a space was previously exempt under a lease pursuant to California Civil Code Section 798.17, the base space rent, for purposes of calculating the annual adjustment, shall be the rent in effect as of the date of expiration of the lease; provided, that space rents can be verified by information required on, and/or documentation submitted with, the annual registration application.

Allowable Rent Increases Upon 'in Place' Transfer of Mobile Home Ownership (a) Subject to the limitations stated herein, upon the closure of an “in-place” sale, transfer or other conveyance of a mobile home subject to this Ordinance, the park owner may increase the space rent by five (5%) percent. (b) No rent increase may be imposed pursuant to this section when an existing mobile home owner or resident replaces an existing mobile home with another mobile home, occupying the same mobile home space.
(c) No increase may be imposed pursuant to this section where title to the mobile home passes to one or more person(s) who, at the time of the title transfer, (1) was/were also lawful, authorized resident(s) of the mobile home, or (2) were/are parents, siblings, children, nieces, or nephews of the mobile home owner, and the mobile home remains in the same space.
8 (d) No increase may be imposed pursuant to this section if an increase was imposed pursuant to this section within the twenty-four-month (24) period preceding the most recent transaction that would otherwise justify the increase pursuant to this section. (e) Rent increases authorized by this section shall be in addition to any other space rent increases authorized by this Ordinance.

Fair Return Standard
(a) Presumption of Fair Base Year Net Operating Income. It shall be presumed that the net operating income received by the landlord in the base year provided the park owner with a fair return.
(b) Fair Return. A park owner has the right to obtain a net operating income equal to the base year net operating income adjusted by one hundred percent (75%) of the percentage increase in the CPI since the base year. It shall be presumed this standard provides a fair return. The base year CPI shall be the annual average CPI for 2026. The current year CPI shall be the annual average CPI for the calendar year which is used as the current year in the application.
(c) Base Year.
(1) Except as provided in subsection (c)(2) of this section, “base year” means the 2026 calendar year.
(2) In the event that a determination of the allowable rent is made pursuant to this section, if a subsequent petition is filed the base year shall be the year that was considered as the “current year” in the prior petition. (d) Current Year. The current year shall be the calendar year that precedes the year in which the application is filed.
(e) Adjustment of Base Year Net Operating Income. The park owner or the tenants may present evidence to rebut the presumption of fair return based upon the base year net operating income as set forth in subsection A of this section based on at least one of the following findings:
(1) Exceptional Expenses in the Base Year. The park owner’s operating expenses in the base year were unusually high or low in comparison to other years. In such instances, adjustments may be made in calculating operating expenses so the base year operating expenses reflect average expenses for the property over a reasonable period of time. The following factors shall be considered in making such a finding:
9 (A) Extraordinary amounts were expended for necessary maintenance and repairs. (B) Maintenance and repair was below accepted standards so as to cause significant deterioration in the quality of services provided.
(C) Other expenses were unreasonably high or low notwithstanding the application of prudent business practices.
(2) Exceptional Circumstances in the Base Year. The gross income during the base year was disproportionately low due to exceptional circumstances. In such instances, adjustments may be made in calculating base year gross rental income consistent with the purposes of this Ordinance. The following factors shall be considered in making such a finding:
(A) If the gross income during the base year was lower than it might have been because some residents were charged reduced rent.
(B) If the gross income during the base year was significantly lower than normal because of the destruction of the premises and/or temporary eviction for construction or repairs.
(C) The pattern of rent increases in the years prior to the base year and whether those increases reflected increases in the CPI.
(D) Base period rents were disproportionately low in comparison to the base period rents of other comparable parks in the City.
(E) Other exceptional circumstances.
(f) Calculation of Net Operating Income.
(1) Net Operating Income. Net operating income shall be calculated by subtracting operating expenses from gross rental income.
(2) Gross Rental Income.
(A) Gross rental income shall include the following:

1. Gross rents calculated as gross rental income at one hundred percent (100%) occupancy, adjusted for uncollected rents due to vacancy and bad debts to the extent such vacancies or bad debt are beyond the control of the landlord. Uncollected space rents in excess of three percent (3%) of gross space rent shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross income.
10 2. All other income or consideration received or receivable in connection with the use or occupancy of the rental unit, except as provided in subsection (f)(2)(B) of this section. (B) Gross rental income shall not include:

1. Utility charges for charges for sub-metered gas and electricity.

2. Charges for water, refuse disposal, sewer service, and/or other services which are either provided and charged to mobile home residents solely on a cost pass-through basis and/or are regulated by state or local law.

3. Any amount paid for the use and occupancy of a mobile home unit (as opposed to amounts paid for the use and occupancy of a mobile home space).

4. Charges for laundry services.

5. Storage charges.
(3) Operating Expenses.
(A) Operating expenses shall include the following:

1. Reasonable costs of operation and maintenance.

2. Management Expenses. It shall be presumed that management expenses have increased by the percentage increase in rents or the CPI, whichever is greater, between the base year and the current year unless the level of management services has either increased or decreased significantly between the base year and the current year.

3. Utility Costs. Utility costs except utility where the consideration of the income associated with the provision of the utility service is regulated by state law and consideration of the costs associated with the provision of the utility service is preempted by state law.

4. Real Property Taxes. Property taxes are an allowable expense, subject to the limitation that property taxes attributable to an assessment in a year other than the base year or current year shall not be considered in calculating base year and/or current year operating expenses.

5. License and Registration Fees. License and registration fees required by law to the extent these expenses are not otherwise paid or reimbursed by tenants.

6. Landlord-Performed Labor. Landlord-performed labor compensated at reasonable hourly rates.
11 a. No landlord-performed labor shall be included as an operating expense unless the landlord submits documentation showing the date, time, and nature of the work performed.
b. There shall be a maximum allowed under this provision of five (5%) percent of gross income unless the landlord shows greater services were performed for the benefit of the residents.

7. Costs of Capital Replacements. Costs of essential capital replacements plus an interest allowance to cover the amortization of those costs where all of the following conditions are met:
a. The essential capital improvement is made at a direct cost of not less than one hundred dollars ($100.00) per affected rental unit or at a total direct cost of not less than five thousand dollars ($5,000.00), whichever is lower.
b. The costs, less any insurance proceeds or other applicable recovery, are averaged on a per unit basis for each rental unit actually benefited by the improvement. c. The costs are amortized over a period of not less than thirty-six (36) months. d. The costs do not include any additional costs incurred for property damage or deterioration that result from any unreasonable delay in undertaking or completing any repair or improvement.
e. The costs do not include costs incurred to bring the rental unit into compliance with a provision of the Fortuna City Code or state law where the original installation of the improvement was not in compliance with code requirements. f. At the end of the amortization period, the allowable monthly rent is decreased by any amount it was increased because of the application of this provision. g. The amortization period shall be in conformance with a schedule adopted by the City unless it is determined that an alternate period is justified based on the evidence presented in the hearing.

8. Legal Expenses. Attorneys’ fees and costs incurred in connection with successful good faith attempts to recover rents owing, successful good faith unlawful detainer actions not in derogation of applicable law, and legal expenses necessarily incurred in dealings with respect to the normal operation of the park to the extent such expenses are not recovered from adverse or other parties, subject to the following requirements:
12 a. All expenses related to the Fair Return Petition shall be incurred by the park owner filing the petition and may not be passed through, in any way, to homeowners.. b. At any time after filing a fair rate of return rent application, the designated representative of the residents of the mobile home park may serve an offer in writing to the mobile home park owner who has filed that petition to stipulate a compromise amount for the fair rate of return rent increase requested in the petition. The designated representative shall also file a copy of this written settlement offer with the City in a separately sealed envelope and with a statement on the outside of the envelope stating that it is a written settlement offer pursuant to this subsection. The sealed copy of the written settlement offer that is so filed with the City is not to be opened by the City until it is either accepted by the park owner or, if it is not accepted by the park owner, after a final rent increase award or denial has been made on the park owner’s petition by either the City or by the hearing officer. Upon receiving such offer to compromise, the mobile home park owner has seven (7) days to accept the offer by filing a written acceptance with the County.
d. A mobile home park owner is not entitled to recover a portion of application expenses, fees, or other costs that are incurred following the submission of a prevailing offer and the residents may recover reasonable attorneys’ fees incurred by the residents after the rejection of a “prevailing” offer. The designated mobile home owners’ representative shall be determined to have made a prevailing offer if a settlement offer has been made and that offer has not been accepted by the park owner within seven (7) days after the making of that offer, and the park owner’s rent increase award fails to exceed the amount of that settlement offer.

9. Interest Allowance for Expenses That Are Amortized. An interest allowance shall be allowed on the cost of amortized expenses; the allowance shall be the interest rate on the cost of the amortized expense equal to the “average rate” for thirty (30)-year fixed rate on home mortgages plus two percent (2%). The “average rate” shall be the rate Freddie Mac last published in its weekly Primary Mortgage Market Survey (PMMS) as of the date of the initial submission of the petition. In the event that this rate is no longer published, the index which is most comparable to the PMMS index shall be used. (B) Operating expenses shall not include the following:

1. Mortgage principal or interest payments or other debt service costs.

2. Any penalties, fees or interest assessed or awarded for violation of any provision of this Ordinance or of any other provision of law.

3. Land lease expenses.
13 4. Political contributions and payments to organizations which are substantially devoted to legislative lobbying purposes.

5. Depreciation.

6. Any expenses for which the landlord has been reimbursed by any utility rebate or discount, security deposit, insurance settlement, judgment for damages, settlement or any other method or device.

7. Unreasonable increases in expenses since the base year.

8. Expenses associated with the provision of master-metered gas and electricity services.

9. Expenses which are attributable to unreasonable delays in performing necessary maintenance or repair work or the failure to complete necessary replacements (e.g., a roof replacement may be a reasonable expense, but if water damage occurred as a result of unreasonable delays in repairing or replacing the roof, it would not be reasonable to pass through the cost of repairing the water damage). (C) Adjustments of Operating Expenses. Base year and/or current operating expenses may be averaged with other expense levels for other years or amortized or adjusted by the CPI, or may otherwise be adjusted in order to establish an expense amount for that item which most reasonably serves the objectives of obtaining a reasonable comparison of base year and current year expenses. Grounds for such adjustments include, but are not limited to:

1. An expense item for a particular year is not representative;

2. The base year expense is not a reasonable projection of average past expenditures for that item in the years immediately preceding or following the base year;

3. The current year expense is not a reasonable projection of expenditures for that item in recent years or of future expenditures for that item;

4. If a particular expense exceeds the normal industry or other comparable standard for the area, the park owner shall bear the burden of proving the reasonableness of the expense. To the extent that it is found that the expense is unreasonable it may be adjusted to reflect the normal industry standard;

5. A base year expense is exceptionally low by industry standards and/or on an inflation adjusted basis is exceptionally low relative to current year expenses although the level or type of service has not changed significantly;
14 6. An increase in maintenance or management expenses is disproportionate to the percentage increase in the CPI, while the level of services has not changed significantly and/or is not justified by special circumstances.
(g) In the event that the period for determining the allowable rent increase pursuant to this section exceeds one hundred twenty (120) days, the park owner may recover increases that would have been permitted if the rent increase decision had been made within one hundred twenty (120) days. The allowance for these increases may be amortized or may be factored into the prospective allowable increase in order to avoid undue hardship on the mobile home owners.
(h) The allowable rent increase per mobile home park space pursuant to this section shall not be increased as a result of the fact that there are exempt spaces in the park. (i) Assurance of a Fair Return. It shall be presumed that the MNOI standard provides a fair return. Nothing in this Ordinance shall preclude the City or the hearing officer from granting an increase that is necessary in order to meet constitutional fair return requirements.

Procedures for Review of Fair Return Petitions
(a) Right to Petition. A park owner (the “applicant”) may petition, at their own expense, for a rent increase in excess of the amount allowed in order to obtain a fair return. The petition shall constitute a ‘fair return application’. No petition for a fair return rent adjustment may be filed pursuant to this Ordinance until thirty (30) days after this Ordinance goes into effect. After 2026, no petition may be filed in November or December of any calendar year except in cases of exceptional or unforeseen circumstances.
(b) Limit on Frequency of Petitions. Only one (1) petition pursuant to this section may be filed for a mobile home park within a twelve (12)-month period. An exception to this limitation shall be authorized in the event of extraordinary circumstances that could not reasonably have been foreseen at the time the prior petition was filed. In the event of a park sale during the period of a pending petition, the petition may not be included in the sale and must be withdrawn. A new petition may not be filed by the new park owner for at least 12 months.
(c) Submission of Petition.
(1) Petition Form Required. Such a petition shall be on a form prescribed by the City and filed with a city office or official which is designated by the City to receive it. 15 (2) Petition Fee. Upon the receipt of a fair return application, the City shall determine if the employment of a certified public accountant or other expert is necessary or appropriate for a proper analysis of the applicant’s petition. Such determination shall be made by City staff assigned for this purpose, or by third party experts retained by the City. If the City so determines, it shall also determine the anticipated cost of employing any such experts. The resulting figure shall be communicated to the applicant. The petition shall not be further processed until the applicant has paid to the City the estimated cost of expert analysis. Any unused portion of the advance payment for expert analysis shall be refunded to the applicant.
(3) Contents of Petition Form. The form may require any information deemed relevant by the County. The form shall include, but not be limited to:
(A) The names and addresses of all mobile home park tenants subject to the rent increase.
(B) A statement of the date the rent increase is proposed to be effective. (C) The rent for each space in the park in the base year, the current year, and the three (3) prior years.
(D) An income and expense statement for the base year, the current year, and the three (3) years prior to the current year. If the applicant is a limited partnership affiliate/subsidiary, they must include all and any related income and expense statement information from their associated entity.
(E) Evidence documenting the income and expenses claimed by the park owner. (F) All other documentation and opinion testimony upon which the park owner is relying to justify the rent increase.
(G) A statement of the petitioner’s theories in support of the rent increase application. (4) Notice of Petition. The park owner and City shall provide notice of a petition by:
(a) Sending a hard copy and electronic .pdf copy of the petition to the tenants’ representative;
(b) Providing the City with hard and electronic copies of the petition; (c) Notifying each tenant household that the petition has been filed on a form provided by the City.
16 (5) Determination That the Petition Is Complete. City staff will determine if a petition pursuant to this section is complete within thirty (30) days after the petition is submitted and all requested fees are paid. A petition will not be deemed complete if the required fees have not been paid. If the petition is incomplete, City staff will inform the petitioner what additional information is required, and the petitioner shall be given 30 days to complete the petition, or the City will disqualify the petition, and another may not be filed for 12 months from the date of the disqualification.
(6) Access to the Petition. The documentation required by this section shall be available for inspection and copying by any person during the normal City business hours. City staff shall make a copy of all submissions by the park owner and the residents in conjunction with a petition, all of which shall be available in the form of an electronic .pdf file.
(7) Cost of Expert Analysis. Upon the receipt of a petition, County staff shall determine if the employment of experts will be necessary or appropriate for a proper analysis of whether the applicant’s petition is complete. If staff so determines, then staff shall also determine the anticipated cost of employing any such experts. The resulting figure shall be communicated to the petitioner. The petition shall not be further processed until the petitioner has paid to the County the estimated cost of expert analysis. Within thirty (30) days after a petition and the required fee, if any, is submitted to the County, staff shall determine if the petition is complete. Any unused portion for payments so collected shall be refunded to the petitioner.
(8) Contents of Expert Analysis. Any analysis pursuant to this subsection shall be in writing and made available to the hearing officer, and shall include a determination of:
(a) Base year and current year rental income;
(b) Base year and current year operating expenses by category; (c) Base year and current year overall operating expenses; (d) Base year and current year net operating income;
(e) The percentage change in net operating income between the base period and the current period;
(f) The percentage change in the CPI between the base period and the current period; (g) The ratio of the percentage change in net operating income to the percentage change in the CPI between the base period and the current period; 17 (h) The rent adjustment required under an MNOI standard pursuant to Ordinance. (9) Submission by Mobile Home Owner Tenants. The mobile home owner tenants may submit a written response to the park owner’s submission within twenty (20) days after the petition is deemed complete.
(d) Review Procedures.
(1) Once a petition is deemed complete, with any expert analysis completed if required, the petition review process shall automatically commence. A decision on any petition for a fair return adjustment shall be rendered within sixty (60) days of the date that the hearing officer has been chosen unless extended as allowed herein. The decision shall be emailed and sent by mail, with proof of mailing to the park owner, the park owner’s designated representative for the petition, and a designated representative of the residents.
(2) Petition review shall be conducted by a hearing officer pursuant to this section. (3) Procedure for Selection of a Hearing Officer.
(A) Hearing officers shall be licensed attorneys of the State Bar of California in good standing, and shall have no financial interest in mobile homes, mobile home spaces or mobile home parks and shall not have represented mobile home park owners or mobile home park residents in rent setting cases or park closing or park conversions or any disputes between park owners and park residents.
(B) A hearing officer shall be selected through the California Office of Administrative Hearings (OAH). In the event that it is not possible or impracticable to obtain a hearing officer through the OAH, the City may elect to contract with any other statewide or regional agency or office that provides arbitration services or may establish a panel in accordance with the following procedure set forth in subsection (d)(3)(C) of this section. (C) In the event that a panel of hearing officers is established, City staff shall make all reasonable efforts to ensure that there are at least three (3) qualified candidates to form a panel of prospective hearing officers. Hearing officers shall be selected on a rotational basis from the panel list. A hearing officer shall disqualify himself or herself from serving as hearing officer in a particular matter where he/she has a conflict of interest within the meaning of the Political Reform Act (Government Code Section 87100 et seq.), and shall otherwise comply with the disqualification provisions of Canon 3.E. of the Code of Judicial Ethics. The parties shall be advised in writing of the selected hearing officer, and advised of their right to disqualify the selected hearing officer. In the event of a disqualification, another hearing officer shall be randomly selected from the panel, and a 18 new notice of hearing sent to the parties. Each party shall have the right to disqualify one hearing officer for a particular matter without cause if there are three (3) or fewer hearing officers on the list and may disqualify up to two (2) hearing officers if there are five (5) or more hearing officers on the list.
(4) Time of and Scheduling of Hearing.
(A) A review hearing on the petition shall commence within forty (40) days of the selection of a hearing officer unless both parties agree to a different schedule. The hearing shall be completed within fifteen (15) days after it is commenced. These time deadlines may be extended if the hearing officer finds that there is good cause to commence and/or complete the hearing at a later date.
(B) The hearing may be scheduled during the normal business hours of the City unless a majority of the residents that are subject to the petition requests that the hearing be scheduled during the evening. The hearing shall be scheduled at a time that it is convenient for the residents’ and park owner’s representatives. (C) The presentations of each party at the hearing and of City staff and experts shall be limited to ninety (90) minutes each unless there is good cause for providing a greater period of time. Each party and the City shall be permitted one hour of cross-examination of expert witnesses.
(5) Notice of Hearing. Written notice of the time, date and place of the hearing shall be given once the hearing officer has been chosen at least thirty (30) days prior to the hearing.
(6) Requests for Additional Information by Opposing Party. (A) Either party or the County may request that additional specific supporting documentation be provided to substantiate the claims made by a party. The request shall be presented in writing to the hearing officer.
(B) The hearing officer may order production of such requested documentation, if the hearing officer determines the information is relevant to the proceedings. (7) Submission of Reports.
(A) Any response by the residents or the park owner to any report or expert analysis prepared by the County must be submitted to the other parties at least ten (10) days prior to the hearing. The submissions shall be in printed and electronic form. 19 (B) Rebuttal reports may be submitted by the park owner, residents, and/or County staff and/or a consultant on behalf of the County and provided to the parties at least five (5) days prior to the hearing.
(C) For good cause, the hearing officer may accept additional information at the hearing.
(8) Conduct of Hearing.
(A) The hearing shall be conducted in accordance with such rules and regulations as may be promulgated by the County and any rules set forth by the hearing officer. (B) The hearing officer shall have the power and authority to require and administer oaths or affirmations where appropriate, and to take and hear evidence concerning any matter pending before the hearing officer.
(C) The rules of evidence generally applicable in the courts shall not be binding in the hearing. Hearsay evidence and any and all other evidence which the hearing officer deems relevant and proper may be admitted and considered. (D) Any party or such party’s representative, designated in writing by the party, may appear at the hearing to offer such documents, oral testimony, written declaration or other evidence as may be relevant to the proceedings.
(E) The hearing officer may grant or order not more than two (2) continuances of the hearing for not more than ten (10) working days each. Additional continuances may be granted only if all parties stipulate in writing or if the hearing officer finds that there is a good cause for the continuance. Such continuances may be granted or ordered at the hearing without further written notice to the parties.
(F) A tape recording of the proceedings shall be made by City staff in a format that is easily made available and is easily usable.
(G) The hearing shall be conducted in a manner that ensures that parties have an opportunity to obtain documents and to obtain information about the theories and facts to be presented by the opposing parties in adequate time in advance of the hearing to enable preparation of a rebuttal.
(9) Required Findings in Decision. Any decision pursuant to this subsection shall include a determination of:
(A) Base year and current year rental income;
20 (B) Base year and current year operating expenses by category; (C) Base year and current year overall operating expenses; (D) Base year and current year net operating income;
(E) The percentage change in net operating income between the base period and the current period;
(F) The percentage change in the CPI between the base period and the current period; (G) The ratio of the percentage change in net operating income to the percentage change in the CPI between the base period and the current period; (H) The rent adjustment required under an MNOI standard pursuant to Section 9101-10 and this section.
(10) Conditions for Allowance or Disallowance of Rent Increase. The allowance or disallowance of any proposed rent increase or portion thereof may be reasonably conditioned in any manner necessary to effectuate the purposes of this Ordinance. (11) Deadline for Decision. An application for a fair return adjustment shall be decided by the hearing officer within sixty (60) days of the date that the filed petition, including the receipt of fees, has been deemed complete, unless the hearing officer determines that there is good cause for an extension of this period or the City extends this period due to the length of time required to accommodate scheduling availability and limitations required to obtain the services of a hearing officer.
(12) Notice of Decision. City staff shall mail copies of the decision to the park owner and all affected mobile home park tenants within three (3) days of the decision. Copies of the decision shall be emailed to the park owner and residents’ representative as soon as possible after the decision is made and in all cases within twenty-four (24) hours after the decision is made.
(13) Preservation of Record. Any findings pursuant to this section shall be reported to the County in an agenda packet and permanently preserved in the City records, so that they are available in the event of a future rent increase application involving the same mobile home park.
(14) Representation of Parties.
(A) The parties in any hearing may be represented at the hearings by a person of the party’s choosing. The representative need not be an attorney. 21 (B) Written designation of representatives shall be filed with the City or the hearing officer.
(C) The written designation of the representative shall include a statement that the representative is authorized to bind the party to any stipulation, decision or other action taken at the administrative hearing.
(15) Modification of Decision in the Event of Mathematical or Clerical Inaccuracies. Any party alleging that the hearing officer’s statement of decision contains mathematic or clerical inaccuracies may so notify the hearing officer and the other party within fifteen (15) calendar days of the mailing of the decision. The hearing officer may make any corrections warranted, and re-file the statement of decision within ten (10) working days after receiving the allegation of the mathematical error. Upon re-filing of the statement, the decision shall be final.
(16) Calculation of Allowable Application Expenses if a Sealed Offer Has Been Submitted. If any sealed settlement offers have been submitted to the City by any parties to the dispute, after the hearing officer determines the allowable rent adjustment pursuant to this section, the hearing officer shall open the sealed offers and make a determination of whether there has been a “prevailing party” and shall announce that determination in the hearing officer’s notice of decision issued pursuant to subsection (d)(12) of this section. Within seven (7) days of receipt of the notice of decision awarding fees, the prevailing party shall submit a written request and accounting of these fees and serve that request simultaneously on all parties by regular and electronic mail. Within seven (7) days of receiving the request by the prevailing party, the opposing party may file an objection to that request. Within seven (7) days of the date that an opposition is submitted or within seven (7) days of the deadline for an opposition, if none is submitted, the hearing officer shall submit a proposed supplemental decision stating the amount of fees included in the award, which shall become final in seven (7) days after the proposed decision, unless either party requests an evidentiary hearing within seven (7) days, in which case a final decision shall be made within seven (7) days after the hearing. If the prevailing party is the mobile home owners’ representative, then the park owner shall file an affidavit with the City, stating that the award of attorneys’ fees has been paid in full and shall not be permitted to implement a rent increase pursuant to this section. For good cause, the hearing officer may modify the procedure set forth in this subsection for determining an award for a prevailing party, excluding rewarding the park owner with legal fees at the expense of park residents.. (e) Overall Period for Review of Fair Return Petition. After a petition is deemed complete, the overall time for conducting a hearing and issuing a final decision by the hearing officer shall not exceed one hundred eighty (180) days, unless the hearing 22 officer determines that there is good cause for extending this deadline or the County extends this period due to the length of time required to accommodate scheduling availability and limitations required to obtain the services of a hearing officer Rent Increases for New Capital Improvements
(a) A park owner may obtain a pass through of a new capital improvement cost under this section. Any capital improvement assessment shall be identified separately and listed on rent statements along with their date of expiration. (b) New Capital Improvements. Improvements that did not previously exist in the park shall be deemed “new capital improvements,” unless the park owner was required by law to make the capital improvements. A park owner may charge each affected mobile home owner as additional rent the pro rata share of new service and capital improvement costs including financing costs subject to the following preconditions:
(1) Prior to initiating the service or incurring the capital improvement cost, the park owner must consult with the mobile home owners regarding the nature and purpose of the improvements and the estimated cost of the improvements. (2) The park owner must obtain the prior written consent to the proposed capital improvement from at least one (1) adult mobile home owner in each of a majority (50% + 1) of the occupied mobile home spaces within the park. Each space shall have only one (1) vote.

Rent Reductions for Service Reductions
(a) “Service reductions” shall mean the elimination or reduction of any service or park facility provided as of December, 2016. “Service” shall also include physical improvements or amenities, the employment of park management/maintenance staff, and regular common area maintenance.
(b) A service reduction complaint shall be submitted to the City alleging in a written form and should state:
(1) The affected spaces;
(2) The prior level of service established by the park owner for that homeowner’s mobile home space and common facilities used by that homeowner; (3) The specific changes in the prior level of services comprising the alleged reduction in service;
23 (4) The date the service reduction was first noticed by the homeowner; (5) The date of notice to the park owner of the alleged service reduction, and if such notice was given, whether the notice was given orally or in writing; (6) When and how the park owner responded to the homeowner' s notice, if notice was given;
(7) Whether the condition was improved or corrected, and if so, when and how; (8) The status of the condition as of the date the complaint is signed; and (9) Where such service reduction was the result of a vote of a majority of the affected homeowners.
(c) Submission of Service Reduction Complaint to Hearing Officer. (1) Thirty (30) days after the service reduction complaint is submitted to the City, if the dispute is not settled, either one-third (1/3) of the tenants in a park or the park owner may request that the dispute be submitted to a hearing officer. (2) If the hearing officer finds that a material service reduction has occurred, the hearing officer shall determine the resultant percentage reduction in the homeowners’ enjoyment of their homes due to the service reduction.
(3) Rent shall be reduced by that percentage or amount. The homeowners also shall be entitled to a rebate of the following sum: the monthly rent reduction multiplied by the number of months between the date the homeowners notified the park owner of the reduction in service, and the date the County determined the rent reduction. (4) A service reduction shall not include the elimination or reduction of a recreational facility or service when such elimination or reduction and rent decrease resulting therefrom have the prior written approval of two-third (2/3) of the homeowners. In such cases no rebate shall be required.
(5) No recreational service or facility which has been reduced or eliminated shall be reinstituted at any cost to the homeowners without prior written approval of two-third (2/3) of the homeowners.
(6) In the event that a service reduction claim is filed while a fair return petition is pending, either the City, the park owner, or the tenants may require consideration of a claim pursuant to this section in conjunction with the fair return claim. 24 (7) In the event that the homeowners do not prevail in their service reduction claim, any legal fee award to the prevailing park owner shall be paid through the City administrative account.

Waivers
(a) Any waiver or purported waiver by a mobile home owner or mobile home tenant of rights granted under this Ordinance shall be void as contrary to public policy. (b) It shall be unlawful for a landlord to require or attempt to require, as a condition of tenancy in a mobile home park, a mobile home owner, mobile home tenant, prospective mobile home owner, or prospective mobile home tenant to waive in a lease or rental agreement or in any other agreement the rights granted to a mobile home owner or mobile home tenant by this Ordinance.
(c) It shall be unlawful for a landlord to deny or threaten to deny tenancy in a mobile home park to any person on account of such person’s refusal to enter into a lease or rental agreement or any other agreement under which such person would waive the rights granted to a mobile home owner or mobile home tenant by this Ordinance Information to Be Supplied by Park Owner to Tenants and Prospective Tenants A copy of this Ordinance shall be posted in the office of every mobile home park and in the recreation building or clubhouse of every mobile home park, by the owner of the park.

Information to Be Provided by County to Public
The City’s web page shall include a copy of this Ordinance, a summary of this Ordinance and other issues related to mobile home park space rentals within the City, and a copy of the California Mobilehome Residency Law (Civil Code 798 et seq Resident Representatives
The residents of each mobile home park in the City shall annually elect by majority vote, with one vote per space, a resident representative to receive all notices required by this Ordinance. The residents shall advise City staff of the name, address and phone number of the elected resident representative in writing no later than January 31st of each year and shall promptly notify City staff of any change of representative. 25 Rights of Prospective Tenants
(a) Any prospective tenant must be offered the option of renting a mobile home space in a manner which will permit the “tenant-to-be” to receive the benefits of the mobile home space rent stabilization program which includes, but is not limited to, rental of a mobile home space on a month-to-month basis. Such a person cannot be denied the option of a tenancy of twelve (12) months or less in duration. (b) The park owner shall provide each prospective tenant with a photocopy of the written notification attached as Appendix A of this Ordinance and will provide each prospective tenant with a copy of this Ordinance.
(c) Any effort to circumvent the requirements of this section shall be unlawful.

Annual Registration and Other Required Notices
(a) No later than February 1st of each year, each park owner shall file an annual registration statement, on a form provided by the City. (b) Contents of Registration Form. The registration statement shall include the name(s), business address(es), and business telephone number(s) of each person or legal entity possessing an ownership interest in the park and the nature of such interest; the number of mobile home spaces within the park; a rent schedule reflecting the current space rents within the park; a listing of all other charges, including utilities not included in space rent, paid by mobile home owners within the park and the approximate amount of each such charge; the name and address to which all required notices and correspondence may be sent; and other information required by County. (c) Certification of Registration Statements. All registration statements, and any accompanying documentation, shall contain an affidavit or declaration, signed by the park owner or a designated agent, with his/her signature notarized, certifying that the information contained therein is true, correct and complete. (d) Notice of Sale of a Park. Upon the sale or transfer of a mobile home park, the seller or transferor shall notify the City of the sale or transfer and of the name and address of the buyer or transferee. Within ten days of the sale or transfer of a mobile home park, the buyer or transferee shall provide a new registration statement. (e) Notice to Prospective Park Purchasers. The park owner shall provide prospective park purchasers with a copy of this Ordinance and notice that the following would be a prerequisite to filing a rent increase application pursuant to this ordinance:
26 (1) A statement of the base year income, expenses, and net operating income of the park with a breakdown of income and expenses by category. (2) Documents supporting the amounts reported in the income and expense statement.

Retaliation Prohibited
(a) It shall be unlawful for any landlord to evict a mobile home owner or mobile home tenant where the landlord’s dominant motive in seeking to recover possession of the rental unit is:
(1) Retaliation for the mobile home owner’s or mobile home tenant’s organizing, petitioning government for rent relief, or exercising any right granted under this Ordinance; or
(2) Evasion of the purposes of this Ordinance.
(b) It shall be unlawful for a landlord to retaliate against a mobile home owner or mobile home tenant for the owner’s or tenant’s assertion or exercise of rights under this Ordinance in any manner, including but not limited to:
(1) Threatening to bring or bringing an action to recover possession of a rental unit. (2) Engaging in any form of harassment that causes the owner or tenant to quit the premises.
(3) Decreasing housing services.
(4) Increasing rent.
(5) Imposing or increasing a security deposit or other charge payable by the owner or tenant.

Demands for Excessive Rents.

It shall be unlawful for a park owner to demand, accept, receive, or retain any rent in excess of the amounts authorized by this Ordinance.

Excessive Rent-Civil Penalties
(a) If any person is found to have demanded, accepted, received or retained any payment of rent in excess of the maximum rent allowed by this Ordinance, such person 27 shall be liable to the mobile home owner or mobile home tenant from whom such payment was demanded, accepted, received, or retained for damages as determined by a court of competent jurisdiction.
(b) In the event a mobile home owner or mobile home tenant is the prevailing party in a civil action against a person found to have demanded, accepted, received or retained any payment ofrent as described in subsection A of this section, such mobile home owner or mobile home tenant, in addition to damages as determined by the court pursuant to subsection A of this section, may, in the discretion of the court, be awarded an amount not to exceed five hundred dollars or three times the damages determined by the court pursuant to subsection A of this section, whichever is greater. For the purposes of this subsection, a mobile home owner or mobile home tenant shall be deemed to be a prevailing party if the judgment is rendered in such mobile home owner’s or mobile home tenant’s favor or if the litigation is dismissed in such mobile home owner’s or mobile home tenant’s favor prior to final judgment, unless the parties otherwise agree in the settlement or compromise.
(c) Remedies provided by this section are in addition to any other legal or equitable remedies and are not intended to be exclusive.

Rules and Guidelines
The City may adopt rules and procedures to implement the applications, notices, registration, verification and certification required by this Ordinance, and for the review of rent increase applications and the conduct of hearings. Such rules and guidelines shall be submitted to the City for review and approval.

Compelling Compliance
The City may institute a civil action to compel compliance with this Ordinance.

Fees of Administration
(a) Definition. “Administrative service fee” or “fee” means a reasonable charge upon persons occupying a space within a mobile home park for the privilege granted by this Ordinance of receiving the specific rent stabilization benefits conferred by this Ordinance.
(b) Collection. The administrative service fee shall be paid to the City from every occupied mobile home space, except exempt spaces which shall be excluded from paying the fee.
28 (c) Purpose and Limitation on Use. The purpose of the fee is to reimburse, in whole or in part, the County for the reasonable costs of conferring the benefits and privileges provided by this Ordinance to the benefit of the mobile home owners who are collectively paying the fee. These costs may include, but not be limited to, the costs of administering and enforcing the rent stabilization provisions of this Ordinance; defending those provisions and their administrative enforcement from litigation challenging them; defending the administrative decisions of the County that would result in the preservation of the mobile home spaces receiving the benefits of this Ordinance as rental spaces that are qualified, under state law, to continue to receive the benefits of this Ordinance from their conversion to subdivided lots or other uses that would result in their loss of the rent stabilization benefits and privileges conferred by this Ordinance from litigation challenging them and providing grants to mobile home park homeowners’ associations, or legal service providers, to partly cover the costs of providing the legal services necessary for enforcing their rights in administrative proceedings under this Ordinance. All moneys collected by the City through this administrative fee shall be set aside and used by the City only for the purposes set forth in this subsection and shall not exceed the reasonable costs of conferring the benefits and privileges provided by this Ordinance to the persons collectively paying the fee, including providing the City with a reserve for covering such future costs, compensating the City for the expenditure of such prior costs and covering the payment of any loans that the City has or may incur to help pay for the costs of providing the benefits and privileges of this Ordinance, including loans to help pay the City’s costs of defending against litigation that is covered under this subsection.
(d) The amount of administrative fees and requirements for submission of the fees shall be reasonable, shall not exceed a total of five dollars ($5.00) per space per month, and shall be set by resolution of the Board of Supervisors in compliance with the specific purpose and limits of this section. Monthly fees applicable to mobile home park spaces covered by this Ordinance shall be collected by each park owner and submitted to the County on a quarterly basis, within thirty (30) days after the end of each quarter. The payments shall be accompanied by reporting as required on a form provided by County staff.

Appeal.

City determinations pursuant to this Ordinance, including but not limited to fair return determinations, shall be subject to review pursuant to California Code of Civil Procedure Section 1094.5 as a final administrative determination, within the time constraints established pursuant to Code of Civil Procedure Section 1094.6.

Severability
29 If any section, subsection, sentence or clause of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance 30

ORDINANCE NO. 1487

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCATA ADOPTING

MOBILEHOME RENT STABILIZATION
WHEREAS, the State of California has recognized, by the adoption of special legislation regulating tenancies of mobilehome owners in mobilehome parks, that there is a significant distinction between homeowners in mobilehome parks and other dwelling units, and the state likewise has recognized that homeowners in mobilehome parks, unlike apartment tenant or residents of other rental stock, are in the unique position of having made a substantial investment in a residence, the space for which is rented or leased as distinguished from owned.

WHEREAS, the physical removal and relocation of a mobilehome from a rented or leased space within a mobilehome park can be accomplished only at substantial cost and inconvenience with a limited concurrent ability to find another location and, in many instances, the removal requires a separation of the mobilehome unit from appurtenances which have been made permanent, thus creating severe damage and depreciation in value to the mobilehome.

WHEREAS, because of the limited availability of vacant spaces in mobilehome parks, the age and condition of some mobilehomes and the cost of moving mobilehomes, it is extremely difficult, if not impossible, to move a mobilehome from one park to another.

WHEREAS, the City has six (6) mobile home parks with a total of approximately five hundred eighty-seven (587) spaces located within the City limits. These spaces represent a significant portion of low-cost, market rate, affordable housing supply within the City.

WHEREAS, the City of Arcata General Plan, Chapter 3, Housing Element provides for the following goals:

1. To “seek and support programs that address the housing needs of and prioritize housing for special groups such as seniors, disabled, farmworkers, those in need of temporary shelter, single-parent families, and large families.” [City of Arcata Housing Element Chapter 3.6 (HE-18)];

2. To “prioritize meeting the needs of low income households, since they represent the most significant area of unmet need.” [City of Arcata Housing Element Chapter 3.6 (HE-22)].

WHEREAS, the City of Arcata General Plan, Chapter 3 Housing Element provides for the following implementation measure: Mobile Home Park Preservation, “Develop programs to preserve mobile home parks with rents that are typically lower than other housing units.” [City of Arcata Housing Element Chapter 3, Table 4 (IM-14)].

WHEREAS, the City Council of the City of Arcata adopted its Mobilehome Affordability Strategies Study (the “Mobilehome Study”) on May 3, 2017, which identified that 48% of respondents pay more than 30% of their income towards housing costs, with 14% paying more than 50%; that rent control is a strategy for maintaining affordable mobilehome housing; and that an ordinance can balance residents’ need for long-term rent predictability with owners’ right to a fair return on investment.

WHEREAS, as a practical matter, the mobilehomes in the City’s mobilehome parks are not in fact mobile. The cost of moving and setting up a mobilehome in a park is substantial. About half of the mobile homes are “doublewide” structures that consist of two ten- or twelve-foot-wide sections joined together when installed on top of a simple foundation, which are impractical to move without significant Attachment A

cost and risk of costly damage. Furthermore, many parks will not accept a used mobilehome, so even if a mobilehome can be moved cost effectively, there is nowhere to move it. Mobilehomes are rarely moved after they are placed in mobile home parks. When mobilehome park residents move they sell their mobile homes “in place” on the rented space.

WHEREAS, though mobilehome owners can sell their unit to another party to recoup their investment, the economic relationship between the ownership of underlying land and the unit itself creates a balance of transferable value between the assets. Higher rents depress home value, transferring value from the unit to the park. Conversely, lower rents increase unit value, transferring value from the park to the unit. Uncontrolled rents could result in the transfer asset value to parks.

WHEREAS, the California Supreme Court has observed that “unlike the usual tenant, the mobilehome owner generally makes a substantial investment in the home and its appurtenances – typically a greater investment in his or her space than the mobilehome park owner…” [Galland v. County of Clovis (2001) 24 Cal.4th 1003, 1009]. Similarly, federal courts in California have also observed “the park owners are business people who understand that the operation of a mobilehome park involves an economic relationship in which both park owner and the home owner must make a substantial investment.

Indeed, they have encouraged the tenants to make the investment and to expect a return on it.” [Adamson Companies v. County of Malibu, 854 F.Supp. 1476, 1489 (1994, U.S.Dist. Ct., Central Dist. California)].

WHEREAS, given the courts’ acknowledgement of the co-investor status of mobilehome owners, who on aggregate, generally have greater investment than park owners in the parks; and the fact that the park owners encourage the homeowners to make investments that the park owners then expect to leverage for a return on homeowner investments, as well as the relationship between rents and mobilehome values, the homeowners are entitled to protections of their investment afforded by this mobilehome rent stabilization ordinance.

WHEREAS, mobilehome rent increases in the City of Arcata, without rent stabilization regulation, have historically tracked closely with United States Housing and Urban Development lowincome rent rates and rates of change in Consumer Price Index without regulation. This free market condition has created a rough equilibrium for several decades preceding the City’s consideration of rent stabilization, which suggests an appropriate value balance formed by the economic tension between the mobilehomes and parks.

WHEREAS, a rent stabilization initiative measure was adopted in Humboldt County in November 2016, which was overwhelmingly approved by the City of Arcata voters. This rent stabilization ordinance will proactively preserve the long-established value balance in the City’s current mobilehome market, ensuring park owners retain a fair rate of return on their investments and the communities that live in the mobilehome parks retain the right to enjoy the significant investments they have made in their homes.

NOW THEREFORE, the City Council of the City of Arcata does ordain as follows:

Section 1. Chapter 6 is hereby created in Title VI, Business Professions and Trades, of the Arcata Municipal Code, entitled “Mobilehome Park Regulation” and consisting of Article 1, General Provisions, and Article 2, Mobilehome Rent Stabilization as follows:

TITLE VI – BUSINESS PROFESSIONS AND TRADES
CHAPTER 6 -- MOBILEHOME PARK REGULATIONS
ARTICLE 1 -- GENERAL PROVISIONS
Attachment A

SEC. 6910.1 Definitions.

For purposes of this Chapter, the following words, terms and phrases shall be defined as follows:

A. “Affected Mobilehome Owners” means those Mobilehome Owners whose Space is not covered by a valid lease meeting the requirements of California Civil Code section 798.17(b) of the Mobilehome Residency Law, or otherwise legally exempt from local rent stabilization regulation.

B. “Base Rent” means the Rent in effect for that Space on July 1, 2017, as adjusted in accordance with this Chapter, as adjusted in this Chapter.

C. “Base Year” means the 2017 calendar year or, if a Fair Return Application subsequently establishes a new Base Rent, the calendar year preceding the year the application is made.

D. “Capital Improvement” means the installation of new improvements and facilities. Capital Improvements are required to be amortized over the useful life of the improvements pursuant to the provisions of this Chapter and the United States Internal Revenue Code.

E. “Capital Improvement Costs" means all costs reasonably and necessarily related to the planning, engineering and construction of Capital Improvements and shall include debt service costs, if any, incurred as a direct result of the Capital Improvement. Capital Improvement does not include ordinary maintenance or repairs or Capital Replacement Costs.

F. “Capital Replacement” means an improvement required to maintain the common facilities and areas of the park in a decent, safe and sanitary condition or maintain the existing level of park amenities and services. A Capital Replacement is an expenditure as defined by the United States Internal Revenue Code which replaces, upgrades or repairs an existing improvement, such as, but not limited to, an onsite water or electrical distribution or sewage collection system, a street, a parking area, or common facility, such as a laundry, community kitchen or meeting room. If the expenditure qualifies for treatment as a capital expenditure which must be depreciated under the Internal Revenue Code, it is a Capital Replacement. If it can be fully deducted in one year as a business expense, it does not qualify as a Capital Replacement.

G. “Capital Replacement Costs” means all costs reasonably and necessarily related to the planning, engineering and construction of Capital Replacement and shall include debt service costs, if any, incurred as a direct result of the Capital Replacement. Capital Replacement does not include Capital Improvement Costs.

H. “City Manager” means the City of Arcata City Manager or its designee.

I. “Consumer Price Index or CPI” means the monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. For purposes of this ordinance, the consumer price index is defined follows: All Urban Consumers, West Region All Items, 1982- 1984=100, as published by the United States Bureau of Labor Statistics of the United States Department of Labor.

J. “Fair Return Application” means an application made to the City seeking to increase Space Rents beyond one hundred percent (100%) of the CPI to provide a fair return to the Park Owner.

Attachment A

K. “Interest Allowance on Amortized Expenses” means the interest rate on the cost of the amortized expense equal to the “average rate” for 30-year fixed rate home mortgages plus two percent. The “average rate” shall be the rate Freddie Mac last published in its weekly Primary Mortgage Market Survey (PMMS) as of the date of the initial submission of the petition. In the event that this rate is no longer published, the index which is most comparable to the PMMS index shall be used.

L. “Legal Expenses” means reasonable attorney’s fees and expert witness’ fees.

M. “Mobilehome Residency Law” means the California Mobilehome Residency Law codified in California Civil Code Section 798 et seq. as now enacted and hereafter amended.

N. “Mobilehome” has the meaning set forth in Section 798.3 of the Mobilehome Residency Law, which is defined as of the date of enactment of this Chapter as follows:

1. A structure designed for human habitation and for being moved on a street or highway under permit pursuant to section 35790 of the Vehicle Code, including a manufactured home, as defined in section 18007 of the Health And Safety Code, and a mobilehome, as defined in section 18008 of the Health And Safety Code, but, except as provided in subsection 2 of this definition, does not include a recreational vehicle, as defined in section 799.29 of the Civil Code and section 18010 of the Health And Safety Code or a commercial coach as defined in section 18001.8 of the Health and Safety Code.

2. "Mobilehome" for purposes of this Chapter also includes trailers and other recreational vehicles of all types defined in section 18010 of the Health and Safety Code, other than motor homes, truck campers, and camping trailers, which are used for human habitation, if the occupancy criteria of either subsection 2a or 2b of this definition, are met:
a. The trailer or other recreational vehicle occupies a mobilehome site in the park, on November 15, 1992, under a rental agreement with a term of one month or longer, and the trailer or other recreational vehicle occupied a mobilehome site in the park prior to January 1, 1991.
b. The trailer or other recreational vehicle occupies a mobilehome site in the park for nine (9) or more continuous months commencing on or after November 15, 1992. "Mobilehome" does not include a trailer or other recreational vehicle located in a recreational vehicle park subject to chapter 2.6 (commencing with section 799.20) of the Civil Code.

O. “Mobilehome Owner” means a person who is the owner of a Mobilehome and legally occupies the Mobilehome within a Mobilehome Park.

P. “Mobilehome Park” or “Park” has the meaning set forth in Section 798.6 of the Mobilehome Residency Law, which is defined as of the date of enactment of this Chapter as any area of land within the City of Arcata where two (2) or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation.

Q. “Mobilehome Space” or “Space” is the site within a Mobilehome Park intended, designed or used for the location or accommodation of a Mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith.

Attachment A

R. “Mobilehome Park Owner” or “Park Owner” means the owner or operator of a mobilehome park or an agent or representative authorized to act on said owner’s or operator’s behalf in connection with the maintenance or operation of such park.

S. “Party” means any Affected Mobilehome Owner and/or Park Owner involved in proceedings under this Chapter.

T. “Prospective Mobilehome Owner” means a person who is in the process of negotiating a tenancy in a Mobilehome Park.

U. “Rent” means any consideration, including any bonus, benefit or gratuity demanded or received by a Park Owner for, or in connection with, the use or occupancy of a Mobilehome Space, or in connection with the assignment of a lease, or in connection with subleasing of the Space. Rent shall not include:

1. Utility charges for charges for sub-metered gas and electricity.

2. Charges for water, refuse disposal, sewer service, and/or other services, which are either provided and charged to tenants solely on a cost pass-through basis and/or are regulated by state or local law.

3. Any amount paid for the use and occupancy of a Mobilehome unit (as opposed to amounts paid for the use and occupancy of a Mobilehome Space).

4. Charges for laundry services.

5. Storage charges.

W. “Rent Increase” means any increase in Base Rent charged by a Mobilehome Park Owner to a Mobilehome Owner or offered to a Prospective Mobilehome Owner.

X. “Rent Stabilization Administration Fee” means the fee established by this Ordinance and amended from time to time by resolution of the City Council in accordance with the provisions of this Chapter.

Y. “Service Reduction” means a decrease or diminution in the basic service level provided by the Park occurring at any time since, January 1, 2018, including but not limited to services the Park Owner is required to provide pursuant to:

1. California Civil Code Sections 1941.1 and 1941.2.

2. The Mobilehome Residency Law, California Civil Code Section 798 et seq.

3. The Mobilehome Parks Act, California Health and Safety Code Section 18200 et seq., or

4. An express or implied agreement between the Park Owner and the tenant.

Section 2. Article 2, Mobilehome Rent Stabilization, is hereby created in Chapter 6, Mobilehome Park Regulations, of Title VI Business Professions and Trades of the Arcata Municipal Code as follows:

TITLE VI – BUSINESS PROFESSIONS AND TRADES
CHAPTER 6 -- MOBILEHOME PARK REGULATIONS
ARTICLE 2 – MOBILEHOME RENT STABILIZATION
SEC. 6920.1 Purpose.

The purpose of this Article is to establish an efficient method of reviewing certain requested Mobilehome Space Rent Increases in Mobilehome Parks to protect Mobilehome Owners from arbitrary, Attachment A

capricious or unreasonable Rent adjustments while ensuring that Park Owners and/or operators and investors receive a fair and reasonable return on their investment in their Mobilehome Parks.

SEC. 6920.2 Definitions.

Unless specifically defined in this Article or the context specifically requires otherwise, the terms used herein are defined in Article 1, General Provisions, of this Chapter.

SEC. 6920.3 Applicability.

This Article shall be applicable to all Mobilehome Spaces within the City of Arcata except as specifically exempted by this Chapter or state law.

SEC. 6920.4 Exemptions.

A. This Section provides information about exemptions based on state law that preempt local law, and does not provide a separate basis for an exemption. The following exemptions from local Rent regulations are provided by state law:

1. Spaces that are subject to a lease that exempts that Space from Rent regulation pursuant to the Mobilehome Residency Law.

2. New Mobilehome Spaces exempted pursuant to Civil Code section 798.45 of the Mobilehome Residency law.

3. Spaces which are not the principal residence of the Mobilehome Owner, and which are exempt pursuant to Civil Code Section 798.21 of the Mobilehome Residency Law.

B. This Article shall not apply to Mobilehomes or Mobilehome Parks owned or operated by any governmental agency or any rental unit whose Rent is subsidized pursuant to a public program that limits the Rent that can be charged for the Mobilehome.

C. This Article shall not apply to Mobilehome Parks with fewer than ten (10) Spaces.

SEC. 6920.5 Base Rent.

A. Base Rent for Non-exempt Leases in 2017. Unless provided otherwise, the “Base Year” means the 2017 calendar year. Except as provided in this Article, a Mobilehome Park Owner shall not demand, accept or retain Rent for a Mobilehome Space exceeding the Base Rent.

1. If a previously rented Mobilehome Space was not rented in the 2017 calendar year, the Park Owner shall not demand, accept, or retain Rent for said Space in an amount exceeding 90th percentile of all subject Rents in effect at the time the Space is rented.

2. If an existing non-exempt Mobilehome Space is rented for the first time after the 2017 calendar year, the Park Owner shall not demand, accept, or retain Rent for said spaces exceeding the Rent first charged for the Space.

B. Base Rent Following Expiration of an Exempt Lease. Base Rent for a Mobilehome Space that becomes subject to this Chapter upon the expiration of an exempt lease shall be the Rent in effect under the exempt lease as of the date of its expiration. Mobilehome Space Rents shall be verified by information required on the annual registration application or any other documentation Attachment A

required by the City Manager.

C. Base Rent Following Termination or Permanent Removal. Whenever either of the following events occurs, a Park Owner shall be permitted to charge a new Base Rent for the Mobilehome Space not to exceed the 90th percentile all subject rents in effect at the time the Space is rented:

1. The termination of the tenancy of the Affected Mobilehome Owner in accordance with the Mobilehome Residency Law; or

2. The voluntary permanent removal of a Mobilehome by a Mobilehome Owner. A removal of the Mobilehome from the Space for the purpose of performing rehabilitation or Capital Improvements to the Space or for the purpose of upgrading the Mobilehome shall not constitute a voluntary removal of the Mobilehome.

D. Base Rent Following a Fair Return Application. Base Rent shall be the allowable Rent determined as a result of a Fair Return Application.

SEC. 6920.6 Annual Rent Increases.

A. Annual Consumer Price Index Rent Increase:

1. Starting in 2018, on or after May 1 of each year, a Mobilehome Park Owner may impose a Rent Increase for a Mobilehome Space by one hundred percent (100%) of the percentage increase, if any, in the consumer price index (CPI) during the most recent twelve (12) month period ending in December of the prior year. Such Rent Increase may be imposed once in any twelve (12) month period. However, the Rent Increase shall not exceed five percent (5%) of the Rent charged for the Space in the preceding year, except as permitted by this Article in accordance with In-place Mobilehome transfers.

2. CPI Cap Adjustment: If the change in the CPI exceeds five percent (5%) for two or more consecutive years, the cap shall automatically be adjusted to the increase in CPI during the years consecutively exceeding five percent.

3. CPI Decrease: In the event that the CPI decreases, no Rent decrease shall be required pursuant to this Section. In the event that the CPI decreases by more than two percent (2%) in any year, said decrease shall be subtracted from the following annual Rent Increase allowable pursuant to this section, unless the amount of the decrease is larger than the following annual Rent Increase, in which case the Rent Increase for the following year will be zero.

B. Notice of Allowable Annual Rent Increase.

1. Calculation of Annual Increase. The allowable annual Rent Increase shall be calculated annually by the City Manager.

2. Notice of Annual Increase. The amount of the Annual Increase shall be: a) posted by February 15th of each year in City Hall and on the City’s website, b) mailed by the City to each Park Owner and Homeowner Representative in each Park, and c) posted by the Park Owner on a notice board in each Mobilehome Park within three business days after it is received by the Park Owner.

Attachment A

C. Banking Allowable Annual Increases. Rent Increases authorized pursuant to this Section may be implemented by the Park Owner at any future time, subject to the requirement that by January 30 of each year, Park Owners notify Affected Mobilehome Owners of each increase allowed pursuant to this Section that has not been implemented, and that the banked increase may be added to the Rent at a future date.

D. Compliance with State Law. Rent Increases permitted pursuant to this Section shall not be effective and shall not be demanded, accepted, or retained until the Park Owner has given the notice required by state law.

E. Notice: A written notice of each Rent Increase or new or increased Capital Improvement Cost or Capital Replacement Cost pass-through charge made under the provisions of this Section shall be filed by the Park Owner with the City Manager, and provided to each Affected Mobilehome Owner, at least ninety (90) days before the Rent Increase goes into effect or as required by the Mobilehome Residency Law. The notice shall identify the Park and shall specify the dollar amount of the increase, the percentage of the increase, an itemization of all new or increased pass-throughs and additional Rent charges, the specific Space affected, the date the increase will go into effect, how each increase was calculated, and the date the Rent on each affected Space was last increased. The notice shall also advise each Affected Mobilehome Owner of any right to petition for review of a proposed Rent Increase and that a petition form may be requested from the City Manager.

SEC. 6920.7 In-Place Transfer Rent Increases; Establishment of New Base Rent.

A. Upon the sale of a Mobilehome in place, a Park Owner may implement an increase of the Base Rent for that Space in an amount equal to ten percent (10%) of the Rent for that Space then in effect.

B. A Park Owner may not condition an in-place transfer of a Mobilehome, or condition assignment of an existing lease to a prospective Mobilehome Owner, upon agreement to an increased Rent.

This Subsection shall not apply to specific conditions included in a lease exempt from rent stabilization. For purposes of this Subsection, "a lease exempt from rent stabilization" means a lease that satisfies Civil Code section 798.17(b) of the Mobilehome Residency Law.

C. No increase may be imposed pursuant to this Section when an existing Mobilehome Owner replaces an existing Mobilehome with another Mobilehome, occupying the same Mobilehome Space.

D. No increase may be imposed pursuant to this Section where title to the Mobilehome passes to one or more person(s) who, at the time of the title transfer, (1) was/were also lawful, authorized resident(s) of the mobilehome, or (2) were/are parents, siblings, children, nieces, or nephews of the Mobilehome Owner and the Mobilehome remains in the same Space.

E. Rent Increases authorized by this Section shall be in addition to any other Rent Increases authorized by this Chapter.

SEC. 6920.8 Fair Return Rent Increases.

A. Fair Return. A Park Owner has the right to obtain a Rent Increase to maintain net operating income (“MNOI”) equal to the Base Year net operating income adjusted by 100 percent of the percentage increase in the CPI since the Base Year. It shall be presumed this standard provides a Attachment A

fair return. Nothing in this Article shall preclude the City Manager, or hearing officer on appeal, from granting a Rent Increase that is necessary in order to meet constitutional fair return requirements.

B. If a Park Owner presents evidence to the City Manager, including any financial records requested by the City Manager, which proves that the Park Owner is denied a fair return by the Rent control provisions of this Article, the City Manager may authorize an increase in Rent as deemed appropriate by the City Manager to provide a fair return to the Park Owner. The City Manager shall use the method set forth in this Article to determine the fair return.

SEC. 6920.9 Method to Determine a Fair Return.

A. Maintenance of Net Operating Income: It shall be presumed that the net operating income produced by the property during the Base Year provided a fair return. A Park Owner shall be entitled to Rents sufficient to earn a just and reasonable return and to maintain and increase their Base Year net operating income in accordance with this Section. This method is called maintenance of net operating income (“MNOI”) and shall be included in all Fair Return Applications.

B. Adjustment of Base Year Net Operating Income: The Park Owner or the Affected Mobilehome Owners may apply to the City Manager to rebut the presumption of fair and reasonable return based upon the Base Year net operating income. To make such a determination and in order to adjust to the Base Year net operating income, the City Manager, or hearing officer if on appeal, must make the following findings:

1. Exceptional Expenses in the Base Year. The Park Owner’s operating expenses in the Base Year were unusually high or low in comparison to other years. In such instances, adjustments may be made in calculating operating expenses so the Base Year operating expenses reflect average expenses for the park over a reasonable period of time. The following factors shall be considered in making such a finding:
a. Extraordinary amounts were expended for necessary maintenance and repairs. b. Maintenance and repair were below accepted standards so as to cause significant deterioration in the quality of services provided.
c. Other expenses were unreasonably high or low notwithstanding the application of prudent business practices.

2. Exceptional Circumstances in the Base Year. The gross income during the Base Year was disproportionately low due to exceptional circumstances. The following factors shall be considered in making such a finding:
a. If the gross income during the Base Year was lower than it might have been because some Mobilehome Owners were charged reduced rent.
b. If the gross income during the Base Year was significantly lower than normal because of the destruction of the Park and/or temporary eviction for construction or repairs.
c. The pattern of rent increases in the years prior to the Base Year and whether those increases reflected increases in the CPI.
d. Base Year Rents were disproportionately low in comparison to the Base Year Rents of other comparable parks in the City.

Attachment A

e. Other exceptional circumstances, excluding any comparisons of Base Year Rents to Rents of other comparable parks located outside of the City or to market rents determined from comparable Parks located outside of the City.

C. Calculation of Net Operating Income.

1. Net Operating Income. Net operating income shall be calculated by subtracting operating expenses from gross rental income.

2. Gross Rental Income.
a. Gross rental income shall include the following:
i. Gross Rents calculated as gross rental income at 100 percent occupancy, adjusted for uncollected Rents due to vacancy and bad debts to the extent such vacancies or bad debt are beyond the control of the Park Owner. Uncollected Space Rents in excess of three percent of gross Space Rent shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross rental income.
ii. All other income or consideration received or receivable in connection with the use or occupancy of the Rental Unit, except as excluded below. b. Gross rental income shall not include the following:
i. Utility charges for submetered gas and electricity.
ii. Charges for water, refuse disposal, sewer service, and/or other services which are either provided and charged to Mobilehome Owners solely on a cost passthrough basis and/or are regulated by state or local law. iii. Any amount paid for the use and occupancy of a Mobilehome unit (as opposed to amounts paid for the use and occupancy of a Mobilehome Space). iv. Charges for laundry services.
v. Storage charges.
vi. Rental Income from Spaces exempted from Rent limitation by state law or this Chapter.

3. Operating Expenses.
a. Operating expenses shall include the following:
i. Reasonable costs of operation and maintenance.
ii. Management expenses. It shall be presumed that management expenses increase by the percentage increase in Rents or the CPI, whichever is greater, between the Base Year and the prior year unless the level of management services has either increased or decreased significantly between the Base Year and the prior year. iii. Utility costs, except where the consideration of the income associated with the provision of the utility service is regulated by state law and consideration of the costs associated with the provision of the utility service is preempted by state law.
iv. Real property taxes attributable to the Base Year or prior year regardless of when actually paid.
v. License and registration fees required by law to the extent these expenses are not otherwise paid or reimbursed by Mobilehome Owners.

Attachment A

vi. Park Owner-performed labor compensated at reasonable hourly rates. No Park Owner-performed labor shall be included as an operating expense unless the Park Owner submits documentation showing the date, time, and nature of the work performed. There shall be a maximum allowed under this subsection of five percent of gross income unless the Park Owner shows greater services were performed for the benefit of the Mobilehome Owners.
vii. Legal Expenses incurred in connection with successful good faith attempts to recover Rents owing, pursuit of rights under or in relationship to this Article, including Legal Expenses incurred in the course of pursuing successful Fair Return Applications, unlawful detainer actions not in derogation of applicable law, and when incurred in the normal operation of the Park, to the extent such expenses are not recovered from adverse or other parties. viii. Interest Allowance on Amortized Expenses.
b. Exclusions from Operating Expenses. Operating expenses shall not include the following:
i. Mortgage principal or interest payments or other debt service costs. ii. Penalties, fees or interest assessed or awarded for violation of any provision of this Chapter or other provision of law.
iii. Land lease expenses.
iv. Political contributions and payments to organizations which are substantially devoted to legislative lobbying purposes.
v. Depreciation.
vi. Expenses for which the Park Owner has been reimbursed by any utility rebate or discount, security deposit, insurance settlement, judgment for damages, settlement or any other method or device.
vii. Unreasonable increases in expenses since the base year. viii. Expenses associated with the provision of master-metered gas and electricity services.
ix. Expenses attributable to unreasonable delays in performing necessary maintenance or repair work or the failure to complete necessary replacements. x. Expenses attributable to a Park-owned Mobilehome, including but not limited to any Mobilehomes rented out by the Park Owner except when provided to a Park manager as a component of employment compensation.
xi. Expenses attributable to Spaces exempt from Rent limitations by state law or this Chapter shall be excluded by reducing the total allowed operating expenses by a percentage of the total number of Spaces in the Park.

c. Adjustments of Operating Expenses. Base Year and/or current operating expense items shall be averaged with other expense levels for the same types of items for other years or amortized or adjusted by the CPI or may otherwise be adjusted, in order to establish an expense amount for the item(s) that most reasonably serves the objectives of obtaining a reasonable comparison of Base Year and prior year expenses. Grounds for such adjustments include, but are not limited to:
i. Either the amount or nature of an expense item for a particular year is not representative.
ii. The Base Year expense is not a reasonable projection of average past expenditures for that item in the years immediately preceding or following the base year.

Attachment A

iii. The prior year expense is not a reasonable projection of expenditures for that item in recent years or of future expenditures for that item. iv. If a particular item of expense exceeds the normal industry or other comparable standard for the area, the Park Owner shall bear the burden of proving the reasonableness of the expense. To the extent that it is found that the expense is unreasonable it may be adjusted to reflect the normal industry standard. v. A Base Year expense is exceptionally low by industry standards and/or on an inflation adjusted basis is exceptionally low relative to the prior year expense although the level or type of service for which the expense is incurred has not changed significantly.
vi. An increase in maintenance or management expenses is disproportionate to the percentage increase in the CPI, while the level of services has not changed significantly and/or is not justified by special circumstances.

D. Constitutionally Required Fair Return: Notwithstanding any other provisions of this Chapter, the City Manager is authorized to approve any Rent Increase that is constitutionally required by law to yield a fair return.

E. Rent Increase Effective Date: Rent Increases approved by the City Manager shall be effective on the date given by the applicant in the notice to the Affected Mobilehome Owners required in section 798.30 of the California Civil Code. In the event that the period for determining the allowable Rent Increase exceeds 120 days, the Park Owner may recover a Rent charge retroactive to 120 days after the Fair Return Application is deemed complete. Delays or continuances that are mutually agreed to in writing by all parties concerned, extensions authorized in this Article, and the number of days that lapse between applicant receiving notice of the necessity of replenishing its deposit and paying the required amount pursuant to the procedure for review of Fair Return Applications cost of expert analysis in this Article, shall not be counted in determining whether said 120-day period has expired. In order to avoid undue hardship on the Mobilehome Owners affected by the decision, the retroactive Rent charge shall be amortized and paid over a period of five years, unless the City Manager or hearing officer determines that a different amortization period is more reasonable. Interest may be charged on this amortized Rent.

F. Per Space Rent Adjustment Pursuant to Fair Return Standard: The allowable Rent Increase per Mobilehome Space pursuant to this Section may not be increased as a result of exempt Spaces in the Park.

SEC. 6920.10 Settlement Proposals.

A. At least 10 days prior to the date specified when the City Manager will take under submission a Fair Return, Capital Improvements, or Rent Reduction application filed pursuant to this Article, or 10 days prior to any appeal hearing, the Homeowner Representative or the Park Owner may submit a written settlement offer to the other party to settle the claims or requests made in the application and to allow a decision or award to be made in accordance with the terms and conditions stated in the offer.

B. The offer shall include a statement the terms and conditions that the offering party is willing to accept, and a provision that allows the accepting party to indicate acceptance of the offer by signing a statement that the offer is accepted. At the same time that the offering party submits its offer to the other party, the offering party shall also file a copy of the written settlement offer with the City Clerk, or hearing officer, in a separately sealed envelope, with a statement on the outside of the envelope identifying the offeror and stating that it is a written settlement offer submitted Attachment A

pursuant to this section. The sealed copy of the written settlement offer that is filed with the City Clerk or hearing officer shall not be opened until it is either timely accepted by the opposing party or, if it is not timely accepted by the opposing party, after the City Manager or hearing officer, as appropriate, has rendered a final decision on the application or appeal.

C. Acceptance of the offer must be in writing and shall be signed by the counsel for the accepting party or, if not represented by counsel, by the accepting party.

D. If the offer is accepted, the parties shall notify the City Manager, and the hearing officer if the application is on appeal, and the City Manager or hearing officer, as appropriate, shall enter the accepted offer as the final decision respecting the application or appeal.

E. If the offer is not accepted within seven calendar days of the offer’s receipt by the opposing party, the offer shall be deemed withdrawn and cannot be given in or considered as evidence as part of the City Manager’s or hearing officer’s, as appropriate, decision.

F. Legal Expenses. If an offer made pursuant to this Section is not accepted and the rejecting party fails to obtain a more favorable award or decision, the rejecting party shall not recover his or her post-offer Legal Expenses and shall pay the Legal Expenses incurred by the offering party from the time of the offer. If competing offers to settle are timely submitted but have not been timely accepted, the City Manager or hearing officer, as may be appropriate, shall determine which party has failed to obtain a more favorable decision or award and assign responsibility for the payment of legal expenses accordingly.

1. The City Manager or hearing officer shall mail and email to the parties a notice of assignment of Legal Expense liability (“Legal Expense Notice”) within seven days after issuance of a final decision on the application or appeal. Within seven days of his/her/its receipt of the Legal Expense Notice, each party shall simultaneously serve a written request for the awarding of and an accounting of Legal Expenses and on the City Manager or hearing officer and all parties by regular mail and electronic mail. Said requests shall include detailed records of fee billings, time records and supporting declarations executed under penalty of perjury.

Within seven days of receiving the requests, opposing parties may file and serve objections in the same manner as service of the original requests. Within seven days after service of the oppositions or within seven days of the deadline for the filing of oppositions, if none is submitted, the City Manager or hearing officer may submit a proposed supplemental decision stating the amount of legal expenses each party is required to pay and the reasons therefor. a. When issued by the City Manager, said supplemental decision shall become final when issued and shall be appealable separately from the City Manager’s decision pertaining to the merits of the petition. The appellate procedures set forth in this Article shall govern an appeal of a City Manager’s decision pertaining to the awarding of Legal Expenses, but an appeal of a Legal Expenses award shall be consolidated with any appeal taken of the City Manager’s final decision pertaining to the merits of the application. b. When issued by the hearing officer, said supplemental decision shall become final in seven days after the proposed decision, unless either party requests an evidentiary hearing within said seven days in which case a final decision shall be made within seven days after the evidentiary hearing is concluded. The hearing officer’s decision shall become final upon mailing, with proofs of service, to all parties of the (i) final decision on the merits of the application, or (ii) final decision on the Legal Expenses award, whichever occurs last.

Attachment A

c. In his or her discretion, the City Manager or the hearing officer, as appropriate, may reduce or offset from any Legal Expense award made in favor of the applicant by the amount of legal expenses the applicant may be required to pay.

2. Any award of Legal Expenses shall be itemized by the Park Owner separately from any Rent Increase or Services Reduction award as a separate, limited time pass-through. The Legal Expense award plus Allowable Interest on Amortized Expenses shall be recovered in equal monthly payments over a five-year period, unless the City Manager or hearing officer determines that a different period is more appropriate, and shall be eliminated after payment is completed at the end of the amortization period.

3. In determining whether a party has obtained a more favorable award or decision than that proffered in a written settlement offer not accepted by that party, the City Manager or hearing officer shall rely upon and be guided by legal precedent and authorities construing the same term used in California Code of Civil Procedure Section 998.

G. The time limits prescribed in this Section may be extended by the City Manager or the hearing officer, as appropriate, upon a showing of good cause.
6920.11 Procedures for review of Rent.

A. The following matters are subject to review by the City Manager upon application:

1. Fair return Rent Increase, excepting that a Park Owner may not file a Fair Return Application in November or December except in cases of unforeseen circumstances.

2. Preapproval of a temporary Rent Increase for specified Capital Improvements and Capital Replacements.

3. Rent reduction for Service Reduction.

B. Limit on Frequency of Applications. Only one application pursuant to this Article may be filed for a Mobilehome Park within any 12-month period, except in the event of extraordinary circumstances that could not reasonably have been foreseen at the time the prior application was filed.

C. Filing of Application.

1. Applications for Rent adjustments for fair return Rent Increases, temporary Capital Improvements and Capital Replacements Rent Increases, or Rent reductions for Service Reductions shall be on forms prescribed by the City Manager.

2. The City Manager may require an application to contain any information as he or she deems relevant, including, but not limited to:
a. A list of the names and addresses of all Mobilehome Park Mobilehome Owners subject to the proposed Rent adjustment.
b. A statement of the date the Rent adjustment is proposed to be effective. c. The Rent for each Space in the park in the Base Year, and the three prior years. d. An income and expense statement for the Base Year, and the four years prior. e. Evidence documenting the income and expenses claimed by the Park Owner.

Attachment A

f. All other documentation and opinion testimony upon which the Park Owner is relying to justify the Rent Increase, or upon which the Mobilehome Owner is relying on to justify a Rent reduction.
g. A statement of the applicant’s theories in support of the Rent Increase or Rent reduction.

D. Notice of Application. The applicant and the City shall provide notice of an application as follows:

1. The applicant and City: by sending a hard copy and electronic copy of the application to the either the a) Homeowner Representative and each Affected Mobilehome Owner, or b) the Park Owner, as appropriate;

2. The applicant: by providing the City with hard and electronic copies of the application; E. Determination that Application is Complete. Within 30 days after filing an application, the City Manager will determine if it is complete. An application will be considered complete only if and when the required fees have been paid. If the application is incomplete, the City Manager will inform the applicant in writing as to what additional information is required. Within 30 days of the applicant’s submittal of requested additional information or fees, the City Manager shall determine whether the application is complete and notify the applicant of the City Manager’s determination. This process shall continue until the City Manager issues a written notice advising the applicant that the application is complete. The time period for Rent Increase effective date shall begin running on the date the City Manager delivers said completeness notice to the applicant.

F. Access to Application. Applications shall be available for inspection and copying by the public during the City’s normal business hours. The City shall reasonably make all applications available to view through the City’s website.

G. Cost of Expert Analysis. Upon the receipt of an application authorized by this Article, the City Manager shall determine if the employment of experts will be necessary for a thorough analysis of the application. The City Manager may retain a certified public accountant to, among other things, verify the accuracy of the expense and income items stated in the application; an expert in the use and theory of the fair return and MNOI methods utilized in this Article; and/or, a licensed appraiser. The City Manager shall also determine the anticipated cost of employing any such experts and communicate this amount to the applicant. The City Manager shall keep an accounting of the Applicant’s deposit and how it is used to defray the City’s costs. If at any time during the processing of an application the remaining balance of the deposit is less than $1,000, or other amount as adjusted by resolution of the City Council, the City Manager shall notify the applicant of the remaining balance, additional amount to be paid, and deadline for payment. The application shall not be further processed until the applicant has paid the estimated cost of expert analysis. Any unused portion for payments so collected shall be refunded to the applicant.

H. Contents of Expert Analysis. At a minimum, any analysis pursuant to this Section shall include a determination of:

1. Base Year and prior year rental income;

2. Base Year and prior year operating expenses by category;

3. Base Year and prior year overall operating expenses;

4. Base Year and prior year net operating income;

5. The percentage change in net operating income between the Base Year and prior year;

6. The percentage change in the CPI between the base period and the prior year; Attachment A

7. The ratio of the percentage change in net operating income to the percentage change in the CPI between the Base Year and the prior year; and

8. The rent adjustment required under an MNOI standard pursuant to this chapter.

I. Response by other party. The party not filing the application may submit a written response to the application within 30 days after the application is determined complete, unless the City Manager determines that there is good cause to extend that deadline. The party filing written response shall deliver it to the applicant and to the City Clerk.

J. Decision by City Manager. Applications filed pursuant to this Article shall be decided by the City Manager based on substantial evidence and without a hearing or personal appearances by any of the involved parties or their representatives. The decision will be made within 60 days of the date that the application is determined complete, unless the City Manager determines that there is good cause to extend that deadline. The City Manager shall email all involved parties or their representatives the date on which the City Manager will consider the matter under submission and beyond which the City Manager will not accept additional information, briefs, evidence or arguments (the “Submission Date”). The City Manager shall email notice of the Submission Date to all parties or their representatives at least 21 days prior to the Submission Date. The City Manager’s decision on the merits of the application shall be emailed and sent by mail, with proof of mailing, to the Park Owner, the Park Owner’s and Mobilehome Owners’ representatives, and the Homeowner Representative.

K. Required Findings in Decision: Any Rent adjustment decision pursuant to this Article shall include a determination of the following:

1. Base Year and prior year rental income;

2. Base Year and prior year operating expenses by category;

3. Base Year and prior year overall operating expenses;

4. Base Year and prior year net operating income;

5. The percentage change in net operating income between the Base Year and the prior year;

6. The percentage change in the CPI between the Base Year and prior year;

7. The ratio of the percentage change in net operating income to the percentage change in the CPI between the Base Year and prior year;

8. The rent adjustment required under the MNOI standard, if applicable to the application.

L. Conditions for Allowance or Disallowance of Rent Increase: The allowance or disallowance of any proposed Rent Increase (or decrease) or portion thereof may be reasonably conditioned in any manner necessary to effectuate the purposes of this Article.

M. Representation of Parties:

1. Each party may be represented by any person of its choosing. The representative need not be an attorney.

2. Written designation of representatives shall be filed with the City Manager or hearing officer.

3. The written designation of the representative shall include a statement that the representative is authorized to bind the party to any stipulation, decision or other action taken by the City Manager or hearing officer.

Attachment A

N. Overall Period for Review of Application. Except as otherwise provided in this Article, a decision on an application for Rent adjustment made pursuant to this Article shall be made within 120 days after the application is deemed complete, unless extended by the City Manager or hearing officer for good cause.

O. Standard of Review. The applicant shall bear the burden of proof, by a preponderance of the evidence, on all issues necessary to the granting of the petitioner’s petition, both at the City Manager and hearing officer levels of review.

SEC. 6920.12 Appeal of City Manager’s Decision.

A. The decision of the City Manager on an application for Rent Increase for fair return, Capital Improvements, or Capital Replacements, or Rent reduction for Service Reduction may be appealed within 30 days after the date of its mailing. An appeal by the Park Owner shall be signed by the Park Owner or its/his/her lawfully appointed agent. An appeal by the Mobilehome Owners must be signed by the Mobilehome Owners residing on a majority of the Mobilehome Spaces that are subject to the City Manager’s decision. An appeal must be in writing and must be delivered to the opposing parties and the City within the 30 appeal period. If the City Manager’s decision is not timely appealed, the City Manager’s decision shall become final on the thirty-first day after the decision is mailed. The appealing party shall be required to pay for the costs of the appeal, including those imposed by the hearing officers and those established by resolution of the City Council. The appeal shall be conducted through a de novo evidentiary hearing, which shall consider at least the following: the application, all information, expert opinions and arguments submitted by the parties to the City Manager; the opinions of the City’s experts; additional arguments or facts upon which the City Manager’s decision is based; and the briefs, evidence and testimony accepted or rejected by the City Manager in support of or in opposition to the application by any of the parties to the proceedings.

B. Procedure for Selection of a Hearing Officer.

1. Hearing officers shall be licensed attorneys of the State Bar of California in good standing, and shall have no financial interest in Mobilehomes, Mobilehome Spaces or Mobilehome Parks and shall not have represented Mobilehome Park Owners or Mobilehome Park Mobilehome Owners in Rent setting cases or Park closings, Park conversions or any disputes between Park Owners and Park residents.

2. A hearing officer shall be selected through the California Office of Administrative Hearings (OAH). In the event OAH is unavailable or unable to provide a hearing officer, the City Manager may elect to contract with another agency that provides arbitration or hearing officer services or may establish a panel from which the hearing officer is selected in accordance with this Section.

3. In the event a list of hearing officers is established, the City Manager shall make all reasonable efforts to ensure that the list is comprised of at least five qualified candidates. A hearing officer shall disqualify himself or herself from serving as hearing officer in a particular matter where he/she has a conflict of interest within the meaning of the Political Reform Act (Government Code Section 87100 et seq.), and shall otherwise comply with the disqualification provisions of Canon 3.E. of the Code of Judicial Ethics. The City shall make the initial selection of the hearing officer from the panel. The parties to the appeal shall be advised in writing of the selected hearing officer, and advised of their right to disqualify the Attachment A

selected hearing officer within five days of receipt of the notice of selection. In the event of a disqualification, another hearing officer shall be randomly selected from the panel by the City, and a new notice of hearing sent to the parties. Each party shall have the right to disqualify one hearing officer for a particular appeal if there are five or fewer hearing officers on the list and may disqualify up to two hearing officers if there are eight or more hearing officers on the list.

C. Time of and Scheduling of Hearing.

1. A hearing on the appeal shall commence within 30 days of the selection of a hearing officer unless both parties agree to a different schedule. The hearing shall be completed within 15 days after it is commenced. These time deadlines may be extended by the hearing officer for good cause.

2. The hearing may be scheduled during normal business hours of the City unless a majority of the residents that are subject to the appeal requests that the hearing be scheduled during the evening. The hearing shall be scheduled at a time that it is convenient for the residents’ and Park Owner’s representatives.

D. Presentations by each party at the hearing and of the City staff and experts shall be limited to 90 minutes each unless the hearing officer determines good cause exists to enlarge those time periods. Each party and the City shall be permitted a cumulative total of one hour of crossexamination of the opposing party’s expert witnesses, unless the hearing officer determines good cause exists to enlarge those time periods. The City may provide legal counsel to help prepare the City’s experts for their presentation at the appeal hearing, to defend the City’s expert witness and to cross examine the expert witnesses of the parties.

E. Notwithstanding anything to the contrary stated herein, whether or not the City decides to appear, submit documents and/or briefs, retain counsel to represent the City, or otherwise participate in the administrative appellate proceedings shall be left to the discretion of the City.

F. Written notice of the time, date and place of the hearing shall be given at least 21 days prior to the hearing.

G. Requests for Additional Information Not Previously Provided to the City Manager by Opposing Party:

1. Either party or the City may request that additional, supporting documentation that was not previously provided to the City Manager as part of his/her initial examination of and decision be provided to substantiate the claims made by a party. The request shall be presented in writing to the hearing officer.

2. The hearing officer may order production of such requested documentation if the hearing officer determines the information is relevant to the proceedings.

H. Responses:

1. Mobilehome Owners or the Park Owner may submit responses to the decision of the City Manager or to reports by the City’s experts. Responses shall be submitted to the other parties Attachment A

and the hearing officer at least 10 days prior to the hearing. Responses shall be in printed and electronic form.

2. Rebuttal reports may be submitted by the Park Owner, Mobilehome Owners, and/or City or its expert. Such reports shall be submitted to the parties and hearing officer at least five days prior to a hearing. Rebuttals shall be in printed and electronic form.

3. The parties’ responses and rebuttal reports shall be considered the prehearing briefs of the parties and the City and no other prehearing briefs shall be allowed unless requested by the hearing officer for good cause.

4. For good cause, the hearing officer may accept additional information at the hearing.

I. Conduct of Hearing:

1. The hearing shall be conducted in accordance with such rules and regulations as may be promulgated by the City Council and any rules set forth by the hearing officer.

2. The hearing officer shall have the power and authority to require and administer oaths or affirmations where appropriate, and to take and hear evidence concerning any matter pending before the hearing officer.

3. The rules of evidence generally applicable in the courts shall not be binding in the hearing.

Hearsay evidence and any and all other evidence which the hearing officer deems relevant may be admitted and considered.

4. Any party or such party’s representative, designated in writing by the party, may appear at the hearing to offer such documents, oral testimony, written declaration or other evidence as may be relevant to the proceedings.

5. The hearing officer may grant or order not more than two continuances of the hearing for not more than 10 working days each. Additional continuances may be granted only if all parties stipulate in writing or if the hearing officer finds that there is a good cause for the continuance. Such continuances may be granted or ordered at the hearing without further written notice to the parties.

6. A recording of the proceedings shall be made or arranged by the City Manager in a format that is made easily available within five days of the conclusion of the hearing.

7. The hearing shall be conducted in a manner that ensures the parties have an opportunity to obtain documents and to obtain information about the theories and facts to be presented by the opposing parties in adequate time in advance of the hearing to enable preparation of their respective cases.

8. Deadline for Decision: Appeals shall be decided by the hearing officer within 90 days of the date of the filing the appeal and payment of all appellate fees, unless extended by the hearing officer for good cause or by the City Manager to accommodate scheduling availability of a hearing officer.

Attachment A

9. Notice of Decision: The City Manager shall mail hardcopies of the hearing officer’s decision to the Park Owner and all affected Mobilehome Owners within three days of the City’s receipt of the hearing officer’s written decision. The decision shall be emailed to the Park Owner’s and residents’ representatives as soon as possible after the decision is received by the City.

J. Modification of Decision in the Event of Mathematical or Clerical Inaccuracies: Any party alleging that the hearing officer’s statement of decision contains mathematical or clerical inaccuracies may so notify the hearing officer and the other party within 15 calendar days of the date of mailing of the decision. The hearing officer may make corrections and shall file a corrected statement of decision within 10 working days after receiving the request to correct.

Alternatively, the hearing officer may decline to correct the decision and shall so notify the parties of his/her determination. Upon filing a corrected statement of decision or a determination not to correct the decision, the hearing officer’s decision shall be final.

K. Preservation of Record: Written findings made by the final decision maker pursuant to this Section shall be permanently preserved in the City records.

SEC. 6920.13 Preapproved Temporary Rent Increases for Specified Capital Improvements and Capital Replacements.

A. A Park Owner shall be permitted to obtain a temporary Rent increase to reimburse specified Capital Improvements and Capital Replacements pursuant to this Section.

B. The City Council shall from time to time adopt an amortization schedule for typical Capital Improvements and Capital Replacements subject to the provisions of this section.

C. Prior to making a Capital Replacement or Capital Improvement, the Park Owner may file an application with the City Manager for approval of a temporary Rent Increase to reimburse Capital Improvement Costs or Capital Replacement Costs. Except as is provided in Subsection H, a Park Owner who commences and completes a project prior to obtaining a temporary Rent Increase approval under this Section, shall be deemed to have conclusively waived its right to seek a Rent Increase for that Cost.

D. Applications for a temporary Rent Increase shall contain at a minimum the following information:

1. A description and cost of the proposed project. The estimated cost of the proposed project shall be reflected in at least two, bids or proposals from qualified and licensed (if required by law) contractors, installers and/or builders;

2. Evidence establishing that the project is necessary at the time the Park Owner seeks to implement it;

3. The date(s) upon which the Park Owner proposes to commence and complete the project;

4. The manner by which the Park Owner will notify the City of the commencement of the work to allow the City to monitor construction and ensure, as practicable, that the work is completed consistent with the temporary Rent Increase approval; Attachment A