STAFF REPORT
Business Agenda Item
DATE: February 2, 2026
TO: Honorable Mayor and Council Members
FROM: Michelle Nielsen, Contract City Planner
THROUGH: Amy Nilsen, City Manager
SUBJECT: Public Hearing and first reading for the adoption of amendments to Title 17, the Zoning Regulations
STAFF RECOMMENDATION
Hold a public hearing and introduce and conduct a first reading of Ordinance 2026-782, amending Chapters 17.06 and 17.08 of Title 17 (Zoning Regulations), and the section titled Statutory References for California Cities of the Fortuna Municipal Code to ensure compliance with current State law for accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).
PROJECT INFORMATION:
Project: Adoption of amendments to the Zoning Regulations (Title 17 of the Fortuna Municipal Code) to ensure compliance with current State law for accessory dwelling units (ADUs) and junior accessory dwelling units Applicant: City of Fortuna
Project Sites: Applies citywide in the City of Fortuna
Zoning District: N/A – Applies citywide in the City of Fortuna General Plan Land
Use:
N/A – Applies citywide in the City of Fortuna
EXECUTIVE SUMMARY
The California Department of Housing and Community Development (HCD) has recognized ADUs and JADUs as affordable housing solutions because they do not require the purchase of additional land or the construction of significant new infrastructure. ADUs and JADUs also allow homeowners to provide independent living spaces for family members or renters, supporting aging in place and enabling extended families to live nearby while preserving privacy. Recent changes to state law have simplified the development of ADUs and JADUs and require local jurisdictions to align with these state standards.
The City adopted its ADU regulations, Ordinance No. 2021-749, in November 2021 to comply with then-current state requirements for ADUs and JADUs. Since that adoption, new state ADU laws that further modify ADU and JADU requirements have been enacted on a near-annual basis, including the following:
Business Agenda Item 5c
Partial List of Changes to ADU Law in 2025:1
• AB 1154 (Chapter 507, Statutes of 2025) made various changes to State ADU Law (Gov.
Code, § 66333) regarding JADUs and goes into effect on January 1, 2026. This bill:
o Specifies that if a JADU has shared sanitation facilities with the primary structure, owner-occupancy will be required. If the JADU does not have shared sanitation facilities, owner-occupancy will not be required (Gov. Code, § 66333,subd. (b)). o Requires that JADUs can no longer be used as short-term rentals and, if rented, must now be rented for longer than 30 days (Gov. Code, § 66333, subd. (g)).
Changes to ADU Law in 2024:
• SB 477 (Chapter 7, Statutes of 2024) made changes to the numbering of the sections of the Government Code for State ADU and JADU Laws.
• Prohibits a local agency from denying a permit for an unpermitted ADU or JADU that was constructed before January 1, 2020, for building code violations, unless the local agency makes a finding that correcting the violation is necessary to comply with conditions that would otherwise deem a building substandard (Gov. Code, § 66332, subds. (a)-(c)). • Defines “livable space” as a space in a dwelling intended for human habitation, as the term appears in Government Code sections 66313, subdivision (e), and 66323, subdivision (a)(3)(A).
• Provides that uncovered, off-street parking spaces demolished in conjunction with the construction of an ADU do not need to be replaced (Gov. Code, § 66314, subd. (d)(11)). • Changes the allowable number of detached ADUs on a lot with an existing multifamily dwelling to eight detached ADUs, provided that the number of ADUs does not exceed the number of existing units on the lot (Gov. Code, § 66323, subd. (a)(4)(A)(ii)). • Prohibits a local agency from imposing any objective development standards on 66323 Units that are not authorized by the provisions of Government Code section 66323, subdivision (a) (Gov. Code, § 66323, subd. (b)).
Changes to ADU Law in 2023:
• Sunsets a former prohibition on a local agency imposing an owner occupancy requirement on any ADU and instead prohibits a local agency from requiring owner occupancy for an ADU (Gov. Code, § 66315).
• Allows a local agency to adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and ADU(s) as condominiums, subject to certain conditions (Gov. Code, §§ 66340-66342).
HCD ADU Handbook
• Since the adoption of Ordinance No. 2021-749 in November 2021, the HCD ADU Handbook received two substantive updates in 2022 and 2024/2025 to incorporate new laws. The Handbook assists local governments, homeowners, architects, and the public in understanding and applying the requirements of state law. Because the Handbook is authored by HCD, it is 1 HCD ADU Handbook – Updated January 2025 with 2026 Addendum – see pages 56-58 for a comprehensive list of ADU/JADU laws passed in 2025 : https://www.hcd.ca.gov/sites/default/files/docs/policy-andresearch/adu-handbook-update.pdf Business Agenda Item 5c
essentially an interpretative manual on the application of ADU law.
Since 2016, HCD has had statutory authority to review local agencies’ ADU ordinances, and as of January 1, 2024, HCD also has the authority to enforce all State ADU Laws. As part of their enforcement of ADU law, HCD is issuing letters of technical assistance to cities and counties with older ADU ordinances. In their letters, HCD is advising that if a city’s or county’s ADU ordinance fails to meet State law requirements, the entirety of the ordinance is considered “null and void,” and the City must instead apply default State ADU standards until a compliant ordinance is adopted. Additionally, HCD is recommending that cities:
1. Repeal their current ADU ordinance; or
2. Amend and adopt a replacement ordinance that fully complies with State ADU statutes (Gov. Code §§ 66310–66344).
At the time this report was prepared, the City had not received an HCD letter of technical assistance. However, because the ADU ordinance has not been updated since 2021, it does not comply with current state ADU law. The continued application of non-compliant local standards may expose the City to risk and violate State requirements for the timely and objective processing of ADU and JADU applications. Moreover, retaining the existing provisions for ADUs and JADUs may create substantial confusion for property owners and applicants relying on outdated standards.
Adoption of the proposed amendments in Exhibit A of Ordinance 2026-782 will avoid these potential risks by repealing the City’s existing ADU and JADU regulations in their entirety and replacing them with a state-compliant ADU ordinance by directly referencing Government Code Sections 66310-66342, the sections where state ADU and JADU law are chaptered. The proposed amendments are the statutory minimum requirements for ADUs and JADUs. These amendments will address the immediate need to bring the City’s regulations into full compliance with state law, while not foreclosing the City’s ability to adopt local ADU regulations in the future. Although cities are mandated to permit ADUs and JADUs, they are not required to adopt local ADU and JADU ordinances. A local ordinance is an opportunity for a city to establish local regulations that encourage the creation of ADUs and JADUs; a city’s local ADU regulations cannot be more restrictive than state law. All local ADU ordinances are subject to an HCD-compliance review, and any inconsistencies must be addressed to HCD's satisfaction.
PLANNING COMMISSION PUBLIC HEARING
On January 13, 2026, the Planning Commission held a duly noticed public hearing to consider and receive public input on the proposed amendments. No members of the public provided written or oral testimony on the proposed amendments at the hearing. One Planning Commissioner requested clarification about which version of the building code would apply when a property owner seeks to legalize an unpermitted ADU. City Building Official Gary Goade advised that the building code in effect at the time that a property owner seeks to legalize the unit would apply, except as modified by State ADU law (e.g., fire sprinklers are required only when required for the existing primary residence). The Planning Commission did not recommend modifications to the proposed amendments. The Planning Commission unanimously approved Resolution P-2026-3142 recommending that the City Council adopt the proposed amendments.
Business Agenda Item 5c
PROPOSED TEXT AMENDMENTS TO THE ZONING REGULATIONS
Chapter 17.06 Regulations that Apply to Specific Uses
Two sections of Chapter 17.06 are proposed to be amended: 17.06.001.5 (Accessory Dwelling Units) and section 17.06.184.5 (Short-term rentals).
The amendments propose to repeal section 17.06.001.5 of Chapter 17.06 in its entirety and replace it with the following language to ensure compliance with state ADU law:
17.06.001.5 Accessory Dwelling Units and Junior Accessory Dwelling Units:
Sections of 66310 – 66342 of the California Government Code are hereby adopted and made part of this ordinance as though fully set forth herein.
The Zoning Regulations regulate short-term rentals (STRs) in section 17.06.184.5. This section includes definitions with specific application to STRS. The amendments in Exhibit A propose to revise the definition of “Dwelling unit” in 17.06.184.5 as follows:
“Dwelling unit” means one or more rooms designed, occupied, or intended for occupancy as separate living quarters, with full cooking, sleeping, and bathroom facilities for the exclusive use of a single household. A dwelling unit includes a single-family residence, and each unit of an apartment, duplex, multiple dwelling structure designed as a separate habitation for one or more persons, or a permitted accessory second residential dwelling that meets the definition of FMC 17.08.222 (Dwelling, second residential), but does not include units located within cityapproved hotels, motels, and bed and breakfasts, and accessory dwelling units or junior accessory dwelling units.
The purpose of this change is to clarify that a permitted second residential dwelling may be used as a short-term rental (STR) and to delete references to ADUs and JADUs to avoid potential conflicts with ADU law. The City’s STR regulations already explicitly define “Short-term” to be fewer than 30 days. The allowable term to rent a STR does not conflict with the State law requirement that ADUs and JADUs be rented for terms longer than 30 days (Gov’t Code Sections 66323(e) and 66333(g)), and an adopted local ordinance may set a rental term of not less than 30 days. Table 1 below compares the rental term requirements for short-term rentals and ADUs/JADUs.
Table 1: Comparison of Rental Term Requirements
Category Short-Term Rentals (STRs) ADUs / JADUs
Definition Rentals for fewer than 30 days Rentals for 30 days or longer Regulatory
Source City regulations (Section 17.06.184.5)
State law (Gov’t Code §§ 66323(e),
66333(g)), and an adopted local
ADU/JADU ordinance.
Proposed
Amendments
Clarify that a permitted second
dwelling may be used as STR;
remove references to ADUs/JADUs
No change; must comply with state
minimum rental term
Business Agenda Item 5c
Category Short-Term Rentals (STRs) ADUs / JADUs
Minimum Rental
Term Less than 30 days Not less than 30 days
Conflict? No conflict due to distinct rental term
requirements No conflict
Chapter 17.08 Definitions and Illustrations
The definition of a second dwelling unit in section 17.08.222 is proposed to be amended to distinguish secondary dwelling units from accessory dwelling units because they are nonconforming ADUs. Also, the proposed changes to the definition intend to reflect the state law requirement (Gov. Code 66332) that cities are to provide a pathway to legalize an accessory dwelling unit that was constructed before 2017 but did not receive city permits:
17.08.222 Dwelling, second residential.
“Second residential dwelling” means a second single-family dwelling constructed or installed prior to January 1, 2017 and that has not been permitted as an accessory dwelling unit, and is located or placed on a parcel of land in the Residential estates or Residential a single-family or multifamily residential zoning districts.
Statutory References for California Cities
This section of the Fortuna Municipal Code refers readers to state statutes that apply to California cities. The proposed amendments to this section update the Government Code section that is referenced from the old section to the new section: The old ADU law section was Government Code § 65852.150 et seq. The new ADU law sections are Government Code §§ 66310 – 66342.
ENVIRONMENTAL REVIEW
The proposed zoning ordinance text amendment is exempt from the California Environmental Quality Act (CEQA). Pursuant to Public Resources Code § 21080.17, the adoption of ordinances that implement Government Code §65852.1, § 66314 et seq., or § 66333 et seq., all of which govern Accessory Dwelling Units (ADUs) and Junior ADUs (JADUs), is statutorily exempt from CEQA.
The ordinance is also categorically exempt under CEQA Guidelines §15303 (Class 3), which covers the construction or conversion of small accessory structures, such as ADUs and JADUs.
PUBLIC HEARING NOTICE
The public notice of this hearing and first reading was given in accordance with Section
17.07.200(C) of the Zoning Regulations and state law. Staff arranged for a public hearing notice to be published in the January 22, 2026, edition of the North Coast Journal. On January 22, 2026, the same public hearing notice was also posted at City Hall and on the City’s website.
Business Agenda Item 5c
RECOMMENDED CITY COUNCIL ACTION
1. Receive staff presentation and review Council questions with staff.
2. Open the public hearing and receive public comment.
3. Close the public hearing.
4. Motion to introduce and hold first reading of Ordinance 2026-782, and read by title only, and continue the public hearing to the City Council’s next regular meeting for the second reading and adoption. Roll call vote.
ATTACHMENTS
Attachment 1: Ordinance 2026-782 and Exhibit A – Amendments to the Fortuna Municipal Code, Title 17 (Zoning Regulations)
Attachment 2: Planning Commission Resolution P-2026-3142 Attachment 3: Public Hearing Notice for the City Council, February 2, 2026, hearing and first reading
ORDINANCE 2026-782
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORTUNA CERTIFYING
COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND AMENDING TITLE 17 (THE ZONING REGULATIONS) OF THE
FORTUNA MUNICIPAL CODE TO COMPLY WITH STATE LAW FOR
ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS WHEREAS, the City of Fortuna, California (City) is a municipal corporation, duly organized under the constitution and laws of the State of California; and
WHEREAS, California Government Code Section 65850, et seq. authorizes cities to regulate land use, and to adopt and amend general plans and zoning and building ordinances for such purposes, and sets forth procedures governing the adoption and amendment of such ordinances; and WHEREAS, on October 9, 2019, Governor Gavin Newsom signed Senate Bill 13 Assembly 881, and other legislation (collectively, the “Bills”) into law, amending Government Code Sections 65852.2 and 65852.22, and adding Health and Safety Code Section 17980.12, thereby establishing statewide requirements for ADUs and JADUs; and
WHEREAS, on November 21, 2021, the City Council adopted Ordinance No. 2021-749 that amended Title 17 of the Fortuna Municipal Code (Zoning Regulations), section 17.06.001.5 of Chapter 17.07 (Regulations that Apply to Specific Uses), to comply with changes in state law related to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), and Ordinance 2021-749 was the last update of the section 17.06.001.5 and the City’s regulations for ADUs; and WHEREAS, since the adoption of Ordinance No. 2021-749, state ADU law has been amended in 2023, 2024, and 2025, including enactment of Senate Bill 477 in 2024, which reorganized and recodified the State’s ADU and JADU provisions into Government Code Sections 66310 through 66342 without substantive change; and
WHEREAS, since 2016, the California Department of Housing and Community Development (HCD) has had statutory authority to review local agencies’ ADU ordinances, and as of January 1, 2024, HCD also has the authority to enforce all State ADU Laws, and WHEREAS, pursuant to Government Code Section 66316, if a city has an existing accessory dwelling unit ordinance that fails to meet the requirements of Article 2 of Chapter 13, of Title 7 of the California Government Code, that ordinance shall be null and void and that agency shall thereafter apply the standards established in this article for the approval of accessory dwelling units, unless and until the city adopts an ordinance that complies with this article; and WHEREAS, because the City’s ADU and JADU Zoning Regulations were updated most recently in 2021, section 17.06.001.5 of Chapter 17.07 may not be in compliance with multiple provisions of State ADU Law and may therefore be “null and void” under Government Code section 66316, requiring the City to apply default State standards; and
WHEREAS, in order to further comply with state law and avoid substantial confusion for property owners and applicants relying on outdated standards, it is necessary for the City to amend its Zoning Regulation to ensure that its provisions conform to and align exactly with the requirements set forth under Sections 66310 – 66342 of the California Government Code; and
WHEREAS, the amendments to the Zoning Regulations, as identified in Exhibit A, attached hereto and hereby incorporated by reference in its entirety, propose the following changes:
(a) In Chapter 17.07 (Regulations that Apply to Specific Uses), repeal section 17.06.001.5 Accessory Dwelling Units in its entirety, and replace it with ADUs and JADUs regulations directly reference sections of 66310 – 66342 of the California Government Code to comply with state law; and
(b) In Chapter 17.07 (Regulations that Apply to Specific Uses), amendments to section
17.06.184.5 Short-term rentals to replace references to ADUs and JADUs with second residential dwelling as defined in section 17.08.222; and (c) In Chapter 17.08 (Definitions and Illustrations), amendments to section 17.08.222 Dwelling, second residential to update the definition to distinguish these units from accessory dwelling units; and
(d) Amendments to the section titled Statutory References for California Cities section to correct the Government Code citation for state ADU law from section 65852.150 et seq. to sections 66310 – 66342; and
WHEREAS, this Ordinance is intended to promote consistency between the City’s Zoning Regulations for ADUs, JADUs, and state law, eliminate any conflicts or discrepancies, and ensure enforceability in accordance with state legal standards.
WHEREAS, on December 17, 2025, the City posted a Planning Commission (PC) public hearing notice in conspicuous locations including City Hall and the City website, specifying the availability of the proposal, and the date, time, and location of the PC public hearing for these amendments to the Zoning Regulations; and on December 29, 2025, the City caused to be published the same public hearing notice in the January 1, 2026, edition of the North Coast Journal; and WHEREAS, the PC held a duly noticed public hearing on January 13, 2026, and after considering the recommended amendments, the CEQA finding, and written or oral testimony submitted by the public on the proposed amendments, the PC unanimously adopted Resolution No. P-2026-3142, recommending that the Fortuna City Council find the amendments in Exhibit A to be statutorily exempt and categorically exempt from CEQA pursuant to Public Resources Code § 21080.17 and § 15303 of California Code of Regulations Title 14, Division 6, Chapter 3 (the CEQA Guidelines), respectively; make the required findings; and adopt the amendments to Title 17, the Zoning Regulations, of the Fortuna Municipal Code; and
WHEREAS, the review and adoption of the amendments is in conformance with the requirements of California Government Code Sections 65853 through 65857, which require a duly noticed public hearing of the Planning Commission whereby the Planning Commission shall provide its written recommendation to the City Council for its consideration; and
WHEREAS, the City caused to be published in the January 22, 2026 edition of the North Coast Journal, a notice of City Council public hearing and first reading of the proposed amendments; additionally, the City posted the same notice of public hearing in conspicuous locations including City Hall and the City website, specifying the availability of the proposed amendments, the date, time, and location of the City Council public hearing for these amendments to the Zoning Regulations, and recommended CEQA finding; and
WHEREAS, the City Council held a duly noticed public hearing on February 2, 2026, to consider the amendments and recommended CEQA determination; and
WHEREAS, the City Council has considered the staff report, supporting documents, public testimony, the Planning Commission’s recommendation that the City Council adopt the proposed amendments to the Zoning Regulations, and all appropriate information that has been submitted with these amendments; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FORTUNA DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The above and foregoing recitals are true and correct, and each is incorporated in full herein by reference.
SECTION 2. Public hearing notices and public participation. All necessary public hearings and opportunities for public testimony and comment have been conducted in compliance with state law.
SECTION 3. Findings. That all of the following findings are hereby made:
A. California Environmental Quality Act (CEQA). The proposed zoning ordinance text amendments are exempt from the California Environmental Quality Act (CEQA). Pursuant to Public Resources Code § 21080.17, CEQA does not apply to ordinances implementing Government Code §65852.1, or Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of the Government Code, which governs ADUs and JADUs. Accordingly, the proposed ordinance is statutorily exempt from CEQA because it implements the State’s ADU and JADU laws.
In addition to the statutory exemption, the proposed ordinance is categorically exempt under the Class 3 exemption set forth in CEQA Guidelines § 15303. The Class 3 exemption applies to the construction and location of new, small structures and the conversion of existing small structures from one use to another. Section 15303 specifically lists appurtenant accessory structures and garages as examples of activities covered by this exemption. Here, the ordinance qualifies for the Class 3 exemption because it regulates the construction of, and conversion of existing structures into, ADUs and JADUs, which are accessory to a primary dwelling and limited in size.
B. Consistency with the Fortuna General Plan. The text amendments repeal the existing ADU regulations and adopt new provisions addressing both ADUs and JADUs, in accordance with California Government Code Sections 66310 through 66342. The proposed amendments implement the City’s goals and policies related to housing, land use, and residential development. They support the General Plan’s objectives to provide a range of housing types, promote efficient use of existing residential neighborhoods, and facilitate housing affordability, while maintaining the character and quality of the community.
C. Public Interest. Adopting ADU and JADU regulations that are consistent with state law is in the public interest because it avoids creating substantial confusion for property owners and applicants who prepare applications relying on outdated standards. Adopting compliant ADU and JADU relations also wards off risks, including improper denial or delay of ADU applications; violation of the Housing Accountability Act and State ADU statutes; exposure to attorney’s fees and enforcement action by HCD or private applicants.
D. Consistency with the Zoning Regulations and Other City Ordinances. The proposed text amendments to the Zoning Regulations are internally consistent with other applicable provisions of the Zoning Code. The amendments repeal the existing ADU regulations and adopt new provisions addressing both ADUs and JADUs, ensuring that the City’s regulations fully conform to the requirements of California Government Code Sections 66310 through 66342. The new provisions maintain consistency with the City’s residential development standards, use classifications, and permitting procedures, thereby preserving alignment with the overall framework of the Zoning Code.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the City of Fortuna hereby amends the Fortuna Municipal Code Title 17, Chapters 17.06 and 17.08, Zoning Regulations, and the section titled Statutory References for California Cities in the form and substance as set forth in Exhibit A, attached hereto and incorporated in its entirety herein by reference. Following the adoption of this Ordinance, without modifying the substance, the City Clerk shall cause the Fortuna Municipal Code amendments to be consistent in form and style with Title 17 of the Fortuna Municipal Code.
SECTION 4. Effective Date. The effective date of this ordinance is thirty (30) days after adoption by the City Council of the City of Fortuna.
SECTION 5. Severability. If any provision of this ordinance is determined to be invalid, such invalidity does not affect the remaining provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this ordinance are severable. The City Council of the City of Fortuna declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.
SECTION 6. Limited Repeal. Any provision of the City of Fortuna Municipal Code or appendices to it that are inconsistent with the requirements of this ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this ordinance.
SECTION 7. Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published and posted as required by law.
FIRST READING CONDUCTED at a regular meeting of the City Council on this 2nd day of February 2026, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Mike Johnson, Mayor
ATTEST:
______________________________
Siana L. Emmons, City Clerk
SECOND READING PERFORMED AND ADOPTED on the _________ day of ____________by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Mike Johnson, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
Ordinance No. 2026-782
EXHIBIT A
Amendments to Fortuna Municipal Code,
Title 17 (Zoning Regulations)
Notes:
1. Proposed amendments to the following sections are shown in underlined text for additions and strikethrough text for deletions.
2. Yellow highlighting was also applied to the revisions to make them easier for readers to locate in the document.
3. All sub-sections not included in the sections below shall continue in full force, unamended by this Ordinance.
Chapter 17.06
REGULATIONS THAT APPLY TO SPECIFIC USES
…
17.06.001.5 Accessory dwelling units and Junior Accessory Dwelling Units.
Sections of 66310 – 66342 of the California Government Code are hereby adopted and made part of this ordinance as though fully set forth herein.
A. Purpose. This section establishes standards for the location and construction of accessory dwelling units (ADUs) consistent with Government Code Sections 65852.2 through 65852.22. These standards are intended to allow accessory dwelling units as a form of aƯordable housing in Fortuna while maintaining the character and quality of life of residential neighborhoods.
B. Definitions.
1. Accessory Dwelling Unit. An attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes an eƯiciency unit and a manufactured home, as defined in Section 18007 of the Health and Safety Code.
2. Detached Accessory Dwelling Unit. An accessory dwelling unit that does not share a common wall with the primary dwelling and is not fully contained within the existing space of an accessory structure.
3. Attached Accessory Dwelling Unit. An accessory dwelling unit that shares at least one common wall with the primary dwelling and is not fully contained within the existing space of the primary dwelling or an accessory structure.
4. Internal Accessory Dwelling Unit. An accessory dwelling unit that is fully contained within the existing space of the primary dwelling or an accessory structure.
5. Junior Accessory Dwelling Unit. An internal accessory dwelling unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.
C. Summary of Standards and Permit Requirements.
1. The standards that apply to an accessory dwelling unit vary depending on the type and size of the accessory dwelling unit. For example, an accessory dwelling unit attached to a single-family home must comply with standards in subsections (E) (General Requirements), (G) (Development Standards), and (H) (Objective Design Standards) of this section. In contrast, an accessory dwelling unit up to 800 square feet and 16 feet in height that is detached from a single-family home must comply only with standards in subsection (E) of this section (General Requirements).
2. Table 1 identifies standards that apply to diƯerent sizes and types of accessory dwelling units in conformance with state law. Table 1 also identifies permits required for these accessory dwelling units. See subsection (F) of this section (Units Subject to Limited Standards) for additional information on types of accessory units allowed with a building permit only.
Table 1: Standards and Permits Required for ADU Types
ADU Type Standards Permit
Single-Family Lots
All Internal ADUs, including
JADUs
E. General Requirements Building Permit Only
Attached E. General Requirements
G. Development Standards
H. Objective Design
Standards
ADU Permit and Building
Permit [1]
Detached
Up to 800 sq. ft. and 16 ft.
height
E. General Requirements Building Permit Only
Greater than 800 sq. ft. and/or
16 ft
E. General Requirements
G. Development Standards
H. Objective Design
Standards
ADU Permit and Building
Permit [1]
Multifamily Lots
Table 1: Standards and Permits Required for ADU Types
ADU Type Standards Permit
Internal [2] E. General Requirements Building Permit Only Detached [3] E. General Requirements Building Permit Only [1] ADUs that request deviation from subsection (H) of this section, Objective Design Standards, allowed with design review. ADUs that request deviation from subsection (G) of this section, Development Standards, require a use permit. [2] Limited to portions of existing multifamily dwelling structures that are not used as livable space. Allowed ADUs limited to 25 percent of existing multifamily dwellings. [3] Maximum two ADUs on a lot. Maximum height 16 feet.
D. Permitting Process.
1. When Consistent With Standards.
a. An accessory dwelling unit that complies with all standards in this section shall be approved ministerially without discretionary review or a public hearing. b. As shown in Table 1 and described in subsection (F) of this section (Units Subject to Limited Standards), certain types of accessory dwelling units require a building permit only.
All other types of accessory dwelling units require an ADU permit and a building permit. The purpose of the ADU permit is to confirm project conformance with standards in subsections (G) (Development Standards) and (H) (Objective Design Standards) of this section.
c. The time frame for city action on an application is the same for accessory dwelling units requiring a building permit only and those requiring an ADU permit. If an existing singlefamily or multifamily dwelling exists on the lot upon which an accessory dwelling unit is proposed, the city shall act on the application within 60 days from the date the city receives a completed application. If the applicant requests a delay in writing, the 60-day time period shall be tolled for the period of the delay.
d. The city has acted on the application if it:
i. Approves or denies the building permit for the accessory dwelling unit; and/or ii. Informs the applicant in writing that the accessory dwelling unit as proposed does not qualify for ministerial approval. If the applicant submits project revisions in response to this information, the city shall accept the revisions as a new application subject to a new 60-day time period.
e. If the accessory dwelling unit application is submitted with a permit application to create a new single-family dwelling on the lot, the city may delay acting on the accessory dwelling unit application until the city acts on the permit application for the new single-family dwelling. The city shall act on the accessory dwelling unit application without discretionary review or hearing within 60 days of action on the new single-family dwelling.
2. When Deviating from Standards.
a. A proposed accessory dwelling unit that deviates from the standards in subsection (H) of this section (Objective Design Standards) shall be reviewed and may be approved or denied subject to the design review procedures in FMC 17.07.100 (Design review). b. A proposed accessory dwelling unit that deviates from standards in subsection (G) of this section (Development Standards) or any other applicable physical standard of this section shall be reviewed and may be approved or denied subject to the use permit procedures in FMC 17.07.060 (Use permits).
3. When Dependent on Separate Construction. When a proposed attached or detached accessory dwelling unit is dependent on the construction of a new building or new portion of a building which is not a part of the accessory dwelling unit (“separate construction”) and is not proposed as part of an application to create a new single-family dwelling on the parcel, the city shall either:
a. Accept and begin processing the accessory dwelling unit application only after acting on an application for the proposed separate construction; or b. Upon written request from the applicant, review and act on the accessory dwelling unit together with the separate construction as part of a single application. In this case, the accessory dwelling unit is subject to the same review procedures and requirements as the separate construction.
E. General Requirements. The following requirements apply to all accessory dwelling units:
1. Where Allowed. An accessory dwelling unit is permitted:
a. In any zoning district where single-family or multifamily dwellings are a permitted use; and
b. Only on a lot with an existing or proposed single-family or multifamily dwelling.
2. Maximum Number per Lot. Not more than one accessory dwelling unit is allowed per lot except as allowed by subsection (F) of this section (Units Subject to Limited Standards).
3. Separate Sale from Primary Dwelling. An accessory dwelling unit shall not be sold or conveyed separately from the primary dwelling.
4. Entrance. An accessory dwelling unit must have an exterior entrance separate from the primary dwelling.
5. Rental. A rented accessory dwelling unit shall not be leased for any period less than 30 days.
6. Converting and Replacing Existing Structures.
a. An internal ADU may be constructed regardless of whether the structure within which it would be located conforms to the current zoning requirement for setbacks. b. If an existing structure is demolished and replaced with an accessory dwelling unit, the accessory dwelling unit may be constructed in the same location and to the same dimensions as the demolished structure.
7. Nonconformities. The city shall not require, as a condition for approval of an accessory dwelling unit, the correction of nonconforming zoning conditions.
8. Junior Accessory Dwelling Units. Junior accessory dwelling units shall comply with all of the following standards:
a. Either the primary dwelling or the junior accessory dwelling unit must be occupied by the property owner.
b. A junior accessory dwelling unit must either:
i. Contain its own full bathroom with a sink, toilet and shower and/or bath facilities; or ii. Share use of a full bathroom located within the primary dwelling. c. A junior accessory dwelling unit must contain, at a minimum, an eƯiciency kitchen with:
i. A cooking facility with appliances; and
ii. At least three linear feet of food preparation counter space and three linear feet of cabinet space.
d. Cooking appliances may consist of either a permanent cook top and/or built-in oven, or a plug-in microwave oven, hot plate, or similar appliances intended for use on top of a countertop.
9. Foundation. An accessory dwelling unit shall be constructed on a permanent foundation. A manufactured home, as defined in California Health and Safety Code Section 18007, is allowed as an accessory dwelling unit if it is placed on a permanent foundation.
10. Fire Sprinklers. The city shall not require accessory dwelling units to provide fire sprinklers if fire sprinklers would not be required for the primary residence under the current fire code.
11. Utilities.
a. The city shall not consider an accessory dwelling unit to be a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the accessory dwelling unit was constructed concurrently with a new single-family dwelling.
b. The city shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet. Any impact fees charged for an accessory dwelling unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit.
c. The following applies to an accessory dwelling unit described in subsection (F)(1) of this section (Internal Accessory Dwelling Units):
i. The city shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge, unless the accessory dwelling unit was constructed concurrently with a new single-family home.
ii. The city may require a new or separate utility connection directly between the accessory dwelling unit and the utility consistent with Government Code Section 65852.2(f)(5). d. The city may require, as part of the application for a permit to create an accessory dwelling unit connected to an on-site wastewater treatment system, a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last 10 years.
F. Units Subject to Limited Standards. The city shall ministerially approve an application for a building permit within a residential or mixed-use zoning district to create the following types of accessory dwelling units. For each type of accessory dwelling unit, the city shall require compliance only with the development standards in this subsection. Standards in subsections (G) (Development Standards) and (H) (Objective Design Standards) of this section do not apply to these types of accessory dwelling units.
1. Internal Accessory Dwelling Units. One internal accessory dwelling unit or junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply:
a. The internal accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress.
b. The space has exterior access from the proposed or existing single-family dwelling. c. The side and rear setbacks are suƯicient for fire and safety. d. The junior accessory dwelling unit complies with the requirements of Government Code Section 65852.22.
2. Detached Accessory Dwelling Units. One detached, new construction, accessory dwelling unit for a lot with a proposed or existing single-family dwelling. The accessory dwelling unit may be combined with a junior accessory dwelling unit described in subsection (E)(1) of this section. The accessory dwelling unit must comply with the following:
a. Maximum floor area: 800 square feet.
b. Maximum height: 16 feet.
c. Minimum rear and side setbacks: four feet.
3. Nonlivable Multifamily Space.
a. Multiple accessory dwelling units within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, subject to the following:
i. At least one accessory dwelling unit is allowed within an existing multifamily dwelling up to maximum of 25 percent of the existing multifamily dwelling units; and ii. Each accessory dwelling unit shall comply with building code standards for dwellings. b. The accessory dwelling unit must be located within a structure containing existing multifamily units. The accessory dwelling unit may not be located in a detached garage, carport, or other accessory structure on the lot that contains no existing multifamily units.
4. Detached Accessory Dwelling Units on Multifamily Lots. Not more than two accessory dwelling units that are located on a lot that has an existing multifamily dwelling, but are detached from that multifamily dwelling and are subject to the following:
a. Maximum height: 16 feet.
b. Minimum rear and side setbacks: four feet.
G. Development Standards. Except as provided in subsection (F) of this section (Units Subject to Limited Standards), an accessory dwelling unit shall comply with the following development standards:
1. Floor Area. The floor area of an accessory dwelling unit shall not exceed the maximums shown in Table 2.
Table 2: Maximum Floor Area
ADU Type Maximum ADU Floor Area
Attached
One bedroom or less 50 percent of the existing primary dwelling or 850 sq. ft., whichever is greater
More than one bedroom 50 percent of the existing primary dwelling or 1,000 sq. ft., whichever is greater
Detached 1,200 sq. ft.
Internal No maximum
Junior 500 sq. ft.
2. Lot Coverage. For lots in the R-1 zoning district with an accessory dwelling unit, the maximum lot coverage is 50 percent.
3. Property Line Setbacks.
a. All Accessory Dwelling Units.
i. An accessory dwelling unit shall be set back from property lines as required by Table 3. ii. See also subsection (E)(6) of this section (Converting and Replacing Existing Structures) for set back exceptions that apply to an accessory dwelling unit created by converting or replacing an existing structure.
b. Detached Accessory Dwelling Units – Front Setbacks.
i. A detached accessory structure shall not occupy a required front yard. ii. In no case may a detached accessory structure be closer to the front property line than the principal structure on the lot. If the principal structure is set back from the front property line greater than the minimum distance required by the zoning district, the front setback of the detached accessory structure must be equal to or greater than the setback of the principal structure.
Table 3: Minimum Property Line Setbacks
Property Line
ADU Type
Attached Detached Internal Junior
Front Same as primary dwelling [1]
Side 4 ft. 4 ft. or 0 ft. adjacent to an alley None required Rear 4 ft. 4 ft. or 0 ft. adjacent to an alley
Note:
[1] For detached accessory dwelling units, see also subsection (G)(3)(b) of this section.
4. Height.
a. Attached ADU.
i. The maximum allowed height for an attached accessory dwelling unit is the height of primary residence or the maximum permitted in the zoning district, whichever is less. ii. A project that increases the height of the primary residence to accommodate an accessory dwelling (e.g., adding a story or raising the structure) is allowed with design review. In such a case, the residence may not exceed the maximum permitted in the zoning district.
b. Detached ADU. The height of a detached accessory dwelling unit shall not exceed:
i. Sixteen feet with ministerial approval; and
ii. The maximum height of the zoning district with a use permit. c. Internal and Junior ADUs. Height standards do not apply to internal and junior accessory dwelling units.
5. Parking.
a. No additional parking is required for an accessory dwelling unit. b. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, replacement parking stalls are not required for the demolished or converted parking structure.
H. Objective Design Standards. The standards in this section apply to all accessory dwelling units not approved pursuant to subsection (F) of this section (Units Subject to Limited Standards).
1. Entrance Orientation – Detached ADU. The primary entrance to a detached accessory dwelling unit shall face the front or interior of the parcel unless the accessory dwelling unit is directly accessible from an alley or a public street.
2. Privacy Impacts. To minimize privacy impacts on adjacent properties, the following requirements apply to walls with windows within eight feet of an interior side or rear property line abutting a residential use.
a. For a single-story wall or the first story of a two-story wall, privacy impacts shall be minimized by either:
i. A six-foot solid fence on the property line; or
ii. Clerestory or translucent windows for all windows facing the adjacent property. The bottom of a clerestory window must be at least five and one-half feet above the adjoining floor.
b. For a second story wall, all windows facing the adjacent property shall be located and designed to minimize privacy impacts on adjacent residential properties, as determined by the planning commission through the use permit approval process.
3. Second Story Decks and Balconies. Second story decks and balconies shall be set back a minimum of 10 feet from a side or rear property line adjoining a lot occupied by a singlefamily dwelling.
4. Outdoor Stairs. Outdoor stairs serving a second story accessory dwelling unit shall be oriented to the interior of the lot, rather than a side or rear property line immediately adjacent to the accessory dwelling unit. The planning commission may allow an exception to this requirement through the use permit approval process for projects that utilize alternative methods to minimize privacy, noise, and aesthetics impacts associated with outdoor stairs.
5. Architectural Details. Table 4 shows architectural detail standards for accessory dwelling units.
Table 4: Architectural Detail Standards
Non-Historic Property [1] Historic Property [1]
Attached
ADU
Detached
ADU
Attached ADU Detached ADU
Primary
Exterior
Materials [2]
Same as
primary
dwelling [3]
No
requirement
Same as
primary
dwelling; or
horizontal
wood, fiber
cement, or
board and
batten siding
or shingles [3]
Horizontal wood, fiber cement,
or board and batten siding, or
shingles [4]
Window and
Door
Materials
No requirement
Wood, composite, pre-finished metal with a
non-reflective finish
Window
Proportions
No requirement
Windows must be taller than they are wide or
match the proportions of the primary dwelling
window [5]
Window Pane
Divisions
No requirement
True or simulated divided lights; or same as
primary dwelling
Roof Material
Same as
primary
dwelling [3]
No
requirement
Same as
primary
dwelling [3]
Same as primary dwelling; or
architectural composition
shingles, clay tile, slate, or non-
Table 4: Architectural Detail Standards
Non-Historic Property [1] Historic Property [1]
Attached
ADU
Detached
ADU
Attached ADU Detached ADU
reflective standing seam metal
[3]
Roof Pitch No requirement
No
requirement
4:12 or greater [6]
Notes:
ADUs that request deviation from these standards may be allowed with design review. [1] “Historic property” means a property that qualifies as a historic structure as defined in FMC 15.52.270.
[2] Standard does not apply to secondary and accent materials. [3] “Same as primary dwelling” means the type of material must be the same as the primary dwelling. The size, shape, dimensions, and configuration of individual pieces or elements of the material may diƯer from the primary dwelling. [4] If primary dwelling is predominantly stucco, stucco is allowed for the accessory dwelling unit.
[5] Bathroom windows may be horizontally oriented.
[6] If the primary dwelling has a roof pitch shallower than 4:12, the accessory dwelling unit roof pitch may match the primary dwelling.
6. Building Additions to Historic Structures. A building addition to a designated historic resource or potential historic resource as defined in FMC 15.52.270 for an attached accessory dwelling unit shall be inset or separated by a connector that is oƯset at least 18 inches from the parallel side or rear building wall to distinguish it from the historic structure.
I. Deed Restriction.
1. An executed deed restriction, on a form provided by the city, shall be submitted to the city prior to issuance of a building permit and shall be recorded prior to final occupancy.
The deed restriction shall stipulate all of the following:
a. The accessory dwelling unit shall not be rented for any period less than 30 days at a time. b. The accessory dwelling unit shall not be sold, transferred, or assigned separately from the primary dwelling.
c. For junior accessory dwelling units, restrictions on size, attributes, and owneroccupancy in conformance with this section. d. The property owner and all successors in interest shall maintain the accessory dwelling unit and the property in accordance with all applicable accessory dwelling unit requirements and standards.
2. The deed restriction shall lapse upon removal of the accessory dwelling unit. (Ord. 2021- 749 § 1 (Exh. 1)).
…
17.06.184.5 Short-term rentals.
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B. Definitions. For the purposes of this section, the following words and phrases shall have the meanings respectively ascribed to them by this section:
“Dwelling unit” means one or more rooms designed, occupied, or intended for occupancy as separate living quarters, with full cooking, sleeping, and bathroom facilities for the exclusive use of a single household. A dwelling unit includes a single-family residence, and each unit of an apartment, duplex, multiple dwelling structure designed as a separate habitation for one or more persons, or a permitted accessory second residential dwelling unit that meets the definition of FMC 17.08.222 (Dwelling, second residential), but does not include units located within city-approved hotels, motels, and bed and breakfasts, and accessory dwelling units or junior accessory dwelling units. “Good neighbor brochure” means a document prepared by the applicant and approved by the city manager that summarizes general rules of conduct, consideration, respect, and potential remedial actions. Provisions for parking and minimizing noise and quiet hours shall be included.
“Host” means an applicant or operator of the short-term rental. “Owner” means any person who, alone or with others, has legal or equitable title to a dwelling unit. A person whose interest in a dwelling unit is solely that of a tenant, subtenant, lessee, or sublessee under an oral or written rental housing agreement shall not be considered an owner.
“Short-term” means fewer than 30 days.
“Short-term rental, commercial” means any structure, or any portion of any structure, which is occupied, or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes, and is held out as such to the public. The structure, or any portion of the structure, is not required to serve as the property owner or owners’ primary residence and the entirety of the residence may be utilized as a short-term rental. “Short-term rental, residential” means any structure, or any portion of any structure, which is occupied, or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes, and is held out as such to the public. The structure, or portion of the structure, serves as the property owner or owners’ primary residence. “Short-term rental (STR) permit” means an application document prepared by the city and approved by the city manager, which is required for the approval of either residential or commercial short-term rental.
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Chapter 17.08
DEFINITIONS AND ILLUSTRATIONS
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17.08.222 Dwelling, second residential.
“Second residential dwelling” means a second single-family dwelling constructed or installed prior to January 1, 2017 and that has not been permitted as an accessory dwelling unit, and is located or placed on a parcel of land in the Residential estates or Residential a single-family or multifamily residential zoning districts. (Ord. 2011-692 § 2 (Exh. A)).
STATUTORY REFERENCES FOR CALIFORNIA CITIES
General Provisions
Accessory dwelling units.
Gov’t Code §§ 65852.150 et seq.66310 – 66342
ATTACHMENT 2
ATTACHMENT 3
Public Notice for the February 2, 2026, Hearing and First Reading Notice published in the January 22, 2026,
edition of the North Coast Journal
Business Agenda Item 5d
STAFF REPORT
Business Agenda Item
DATE: February 2, 2026
TO: Honorable Mayor and Council Members
FROM: Kaylyn Stainbrook, Parks & Recreation Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Fortuna Transit Operations and Alternatives
STAFF RECOMMENDATION:
Receive Staff presentation, select preferred Transit operations option, and authorize staff to pursue changes accordingly
EXECUTIVE SUMMARY:
The City of Fortuna is currently served by two transit programs: Fortuna Transit and Redwood Transit System.
The City’s Parks and Recreation Department operates the Fortuna Transit system (Transit Division) and currently provides curb-to-curb transportation services to the senior (50+) and disabled populations within the city limits of Fortuna. This type of transportation system involving individualized rides (no fixed routes) is referred to as “paratransit”. The current fare is $3 per ride or $30 for 15 rides (punch card). Additionally, Fortuna Transit provides a weekly trip to Eureka specifically for medical appointments (funded by Measure E). Historically, Fortuna Transit has also provided a monthly trip to Eureka, specifically for shopping (at a higher fare).
Humboldt Transit Authority (HTA) operates its Redwood Transit System (RTS) throughout the county and offers fixed route rides to the general public. RTS currently services 25 northbound and southbound bus stops throughout Fortuna. City of Fortuna pays approximately $200,000 annually for RTS to include Fortuna in its commuter route.
FORTUNA TRANSIT SCHEDULING
Fortuna Transit’s scheduling process currently involves riders calling Fortuna Transit’s dispatcher to reserve a ride. The dispatchers track all rides in handwriting on each driver’s daily schedule.
Prior to July 1, riders were only required to reserve their initial pick-up time and then called the dispatcher when they were ready to go to their next destination. This “on demand” approach created scheduling congestion (in real-time and on the handwritten schedules), caused delays with other riders’ scheduled trips, and often prevented drivers from receiving legally mandated breaks and lunches. Effective July 1, when riders call to schedule a ride, they must also reserve a time slot Business Agenda Item 5d
for all subsequent trips, including their return home. This promotes a consistent, even-flow schedule, reduces waiting times, and ensures drivers receive proper breaks. The paper schedules are now easier to decipher with fewer last-minute changes noted. However, with paper, handwritten records, reporting still requires time-consuming, manual review when reporting data.
FORTUNA TRANSIT FLEET
Fortuna’s Transit fleet currently consists of three gas-fueled vehicles:
▪ 2015 12-passenger (Class B) Star Craft Bus (Fleet #231) - currently out of service due to manufacturer being out of business and unable to locate replacement parts; approximately 135,071 miles
▪ 2011 12-passenger (Class B) Ford Bus (Fleet #224) - with defective seat (unable to find replacement) and increasing maintenance needs; approximately 145,600 miles ▪ 2017 8-passenger (Class C) Ford Van (Fleet #237); approximately 50,800 miles According to the Federal Transit Administration’s (FTA) Useful Life of Transit Buses and Vans Final Report, the typical lifespan for these types of transit vessels is approximately 10 years (or less) or 100,000 miles.
In December 2018, the Innovative Clean Transit (ICT) Act was adopted and requires all public transit agencies to gradually transition to a 100 percent zero-emission bus (ZEB) fleet. Beginning in January 2026, 25% of new vehicle purchases for Fortuna’s transit fleet must be zero-emission.
By January 2029, 100% of new purchases by transit agencies must be ZEBs. However, vehicles under 14,000 lbs. (often the smaller transit vans) are exempt from ICT. Considering that City of Fortuna does not currently have the infrastructure to support the purchasing of zero-emission vehicles, gas-fueled vehicles would likely be sought for their impending replacements.
Furthermore, the estimated cost of three battery electric cutaway vehicles is $939,500 [per Humboldt County Association of Governments’ (HCAOG) Transit Development Plan 2023- 2028], whereas gas-fueled vans would be a fraction of the cost (estimated at $600,000).
FORTUNA TRANSIT STAFFING
Fortuna Transit’s staff currently consists of:
▪ (Parks and Recreation Director currently acting as Division Head) ▪ 2 Part-Time Transit Dispatchers
▪ 1 Full-Time Class B Driver
▪ 1 Full-time Equivalent (FTE) Part-Time Class C Drivers • 2 Regular Part-Time Class C Drivers
• 1 On-Call Part-Time Class C Driver who is a true back-up (per diem) driver.
It has been very challenging to attract and retain Class B drivers. Therefore, as Fortuna Transit replaces its fleet in the near future, Class C fleet vehicles should be considered. For further, it is typically easier for riders to board the vans rather than buses (which often have large steps).
Business Agenda Item 5d
FUNDING
Fortuna’s Transit system is primarily funded by statewide general sales tax allocations known as the Local Transportation Fund (LTF), which is one of the funding sources of the Transportation Development Act (TDA). To be eligible to receive LTF funding, rural agencies such as Fortuna Transit must recover at least 10% of their operational costs. This percentage or revenue-tooperation cost ratio is called the “Farebox Recovery Ratio”, commonly referred to as “Farebox”.
In fiscal year 23-24, Fortuna Transit’s fare revenue was approximately $16,000. The operational cost was approximately $243,000. Fortuna Transit’s Farebox Revenue Recovery Ratio in fiscal year 23-24 was 6.58%.
In fiscal year 24-25, Fortuna Transit’s fare revenue was approximately $24,929. The operational cost was approximately $236,123. Therefore, Fortuna Transit’s Farebox Revenue Recovery Ratio was 10.56%. However, approximately $6,000 of the revenue was due to a handful of large organizations purchasing bulk punch cards (not steady rider-purchased fare). Additionally, the punch cards will likely be used by residents in the current fiscal year 25-26, and therefore, it is likely that fewer residents will be purchasing fare in the 25-26 fiscal year. Fortuna Transit would not have met farebox without these bulk purchases. Without having another funding source to securely support operations and a much-needed upgraded fleet, the future of Fortuna Transit will need to rely on the City’s General Fund if operations continue as-is (See option “A” under the “Options for Consideration” section).
In addition to funding Fortuna Transit operations, City of Fortuna pays Humboldt Transit Authority (HTA) approximately $200,000 per year in order to maintain RTS’ fixed route service throughout Fortuna, which benefits citizens and visitors in their travel endeavors. This annual cost has been increasing on average 5% per year and will likely continue to increase at that same rate in future years.
Staff has consulted with HCAOG and HTA several times regarding ways to continue service to our senior and disabled residents. A recurring solution is to open Fortuna Transit to the general public (no longer just serving individuals aged 50+ and/or individuals with disabilities).
Although, that demographic would continue to receive priority use and the ability to make reservations before the general public could.
By opening same-day service to the general public, Fortuna Transit would increase ridership and revenue to pursue farebox requirements and LTF funding. It would also increase route connectivity (with HTA/RTS) for Fortuna residents and all Humboldt riders. Furthermore, opening same-day service to the general public, would qualify Fortuna Transit for additional funding sources, such as Humboldt County Tax Measure O, SB 125, LCTOP, 5310, 5311, and the State Transit Assistance (STA) Fund. These funding sources can assist with vehicle purchases and operational improvements.
OPERATIONAL CHANGES AND CONSIDERATIONS
During a meeting in November 2025, HTA disclosed that the amount City of Fortuna is paying HTA for RTS fixed route services is not beneficial enough for them to continue services as is.
Business Agenda Item 5d
HTA intends to reduce Fortuna service by eliminating 14 very lightly used bus stops sometime in the future.
With continuity of service to RTS riders in mind, HTA and the City of Fortuna discussed Fortuna Transit opening service to the general public, theoretically compensating for RTS’ reduced bus stops and providing paratransit services from RTS stops to riders’ destinations within Fortuna.
If RTS’ ridership from those eliminated stops (estimated 25 riders per day) transferred to Fortuna Transit, Fortuna Transit’s ridership would increase by approximately 74%.
To ensure the increased ridership does not negatively impact staff and existing services, Fortuna Transit has been invited to join HTA’s existing RideCo account. RideCo is an advancedtechnology ride-scheduling application. The application has several configurations, including options to give priority scheduling to registered users (Fortuna’s senior and disabled residents).
To solidify the proposed partnership, HCAOG, in collaboration with HTA, is offering to reallocate some of their funding to Fortuna Transit. The reallocation would include one-time purchases of two new vans and assistance with the initial RideCo application costs. Additionally, HCAOG may be able to reallocate approximately $125,000 of STA funds annually to Fortuna Transit for recurring operational costs. By having a dependable fleet, Fortuna Transit would be able to consistently maintain at least two in-town vehicles every day of the week – even when a special medical trip is scheduled.
By increasing the ride-eligible population and integrating this scheduling application, Fortuna Transit would be able to streamline its scheduling process and transit reporting, maximize rides, efficiently store rider information, and minimize cash handling.
Although there are two part-time transit dispatchers, there is not currently a Transit Supervisor position. Having a dedicated Division Head for Transit would allow more focus on Transit program growth, pursuit of funding opportunities, and thorough tracking/reporting. It should also be noted that HTA currently utilizes a contract call center at $1.66 per minute, eliminating the need for their sole dispatcher position. This resource should be considered to reduce office workload and staff time, therefore requiring less dispatch time and allowing for more administrative focus. If Council approves to open transit service to the general public, staff is recommending one part-time dispatcher position be eliminated and one full-time, salaried Transit Supervisor be added. The other position would remain part-time and would continue to support both the Transit and Recreation Division as needed.
CONCLUSION
In summary, Fortuna Transit continues to provide a critical service to seniors and disabled residents but faces significant challenges in meeting funding requirements and replacing its aging fleet. Exploring integration with HTA’s RideCo platform and expanding services to the general public represents promising opportunities to enhance service efficiency and increase farebox recovery. Allocating a supervisory transit position to navigate these changes and oversee program growth and continuity is necessary. These steps will help ensure that Fortuna Transit not only sustains its vital service to seniors and disabled residents, but also evolves into a stronger, more resilient transit program for the entire community.
Business Agenda Item 5d
OPTIONS FOR CONSIDERATION
A) Status Quo (Continue As-Is Transit Operations)
a. Key Points:
i. Do not open to general public,
ii. Director remains primary Transit Supervisor
iii. No scheduling application
iv. No call center assistance.
b. General Fund Impact: In FY 27-28, General Fund support of Transit operations would start increasing by $20-30k annually due to closed-ended funding sources. c. Operational/Community Impact: Limited supervisory capacity for growth, longterm planning, protocol development, staff training, etc. Does not support connectivity to RTS fixed route.
Option A (Status Quo) 5-year Financial Forecast
B) Transit Supervisor Allocation and Re-Evaluation in FY27-28 a. Key Points:
i. Open transit service to general public
ii. One part-time dispatcher position to be eliminated, and replaced with one fulltime, salaried Transit Supervisor. iii. Implement RideCo scheduling application
iv. Implement contracted call center assistance
v. Program/progress to be re-evaluated for Council discussion at the end of FY 27-28.
b. General Fund Impact: $35,000 annual on-going increase to the General Fund due to the new Transit Supervisor Position being partially allocated to Recreation.
General Fund support of Transit operations is not forecasted until FY 28-29, then slow increase. Please note other “general public” funding sources may become available that are not included in the forecast.
c. Operational/Community Impact: Dedicated Transit supervisor to focus on marketing, program growth, long-term planning, protocol development, staff training, and pursuit of additional funding sources; efficient scheduling system to Business Agenda Item 5d
reduce number of calls to office and increase ridership; the reduced number of calls will result in a reduced cost of call center assistance; improved connectivity with RTS fixed route.
Option B (Transit Supervisor Allocation & Re-Evaluation) 5-year Financial Forecast C) Explore Outsourced Transit Service
a. Key Points: Explore the possibility of paratransit service in Fortuna being operated by an external organization, such as Humboldt Transit Authority, and report findings at a future City Council Meeting.
b. General Fund Impact: No General Fund impact.
c. Operational/Community Impact: Transit operations and assets would no longer be under City ownership nor control – unknown service changes.
D) Close Transit Service
a. Key Point: Fortuna Transit dissolution.
b. General Fund Impact: No impact to General Fund.
c. Operational/Community Impact: RTS would continue its reduced bus stop fixed route – costing City $200,000/year. Citizens referred to external transit resources (unknown requirements) such as Humboldt Senior Resource Center/PACE, We Care For You Transport, Dial-A-Ride, Partnership Non-Emergency Medical Transportation, City Cab, Area 1 Agency on Aging’s Volunteer Driver Program, etc.
RECOMMENDED COUNCIL ACTION:
1. Receive staff report, presentation, and review Council questions with staff
2. Open Public Comment
3. Close Public Comment
Motion to authorize Option B, for City staff to begin the process to open same-day transit services to the general public, open recruitment for a full-time, salaried Transit Supervisor, approve RideCo application services and call center contract, and request staff report back with progress in FY 27-28. Roll call vote.