Consent Agenda Item 3r
STAFF REPORT
Consent Agenda Item
DATE: July 20, 2026
TO: Honorable Mayor and Council Members
FROM: Brian Issa, Public Works Director
THROUGH: Amy Nilsen. City Manager
SUBJECT: Review, Approve and Authorize Submission City of Fortuna’s Response to Humboldt County Civil Grand Jury Report “Flowing Forward: Funding the Future of Water and Sewer Systems”
STAFF RECOMMENDATION:
Review, approve, and authorize submission of the City of Fortuna’s response to the Humboldt County Civil Grand Jury report titled “Flowing Forward: Funding the Future of Water and Sewer Systems,” released June 17, 2026.
Upon approval, staff is authorized to submit the City’s response to the Presiding Judge of the Humboldt County Superior Court and the Humboldt County Civil Grand Jury, and to take any related filing or administrative steps required by law.
EXECUTIVE SUMMARY:
The Humboldt County Civil Grand Jury released the report “Flowing Forward: Funding the Future of Water and Sewer Systems” on June 17, 2026. Under California Penal Code Section 933, the City Council, as the governing body of a public agency, is required to respond to the applicable findings and recommendations no later than 90 days after submission of the report. The report addresses long-term funding, rate planning, public communication, and infrastructure investment for water and wastewater utilities, including findings and recommendations directed to the City of Fortuna. The attached response generally agrees with the Grand Jury’s emphasis on long-term financial planning, regular infrastructure investment, public communication, and periodic rate evaluation, while providing additional context regarding the City’s operational, regulatory, financial, and organizational realities.
The response acknowledges the importance of maintaining safe and reliable water and wastewater service, recognizes the effects of deferred rate adjustments and infrastructure needs, and identifies actions already implemented by the City, including completion of the 2024 rate study, adoption of rate adjustments, continued public communication, updated capital improvement planning, and pursuit of grant and low-interest financing opportunities.
Key Response Points:
Consent Agenda Item 3r
• The City agrees that Public Works and utility staff have worked to maintain safe and reliable service.
• The City agrees that public communication regarding utility finances, infrastructure needs, and future rate impacts is important.
• The City agrees that aging infrastructure requires rehabilitation, replacement, and modernization.
• The City partially disagrees with one finding to clarify that planning, engineering, budgeting, regulatory compliance, and capital improvement activities continued between the 2006-2011 and 2024 rate studies.
• The City intends to complete a subsequent water and wastewater rate study allowing presentation to City Council no later than April 15, 2029.
The draft response has been reviewed by the City Attorney for legal sufficiency and is presented for City Council consideration and approval.
Conclusion:
Approval of the response will allow the City to meet its obligation to respond to the Civil Grand Jury and will document the City’s continued commitment to safe, reliable, financially sustainable, and resilient water and wastewater services.
FINANCIAL IMPACT:
There is no direct financial impact associated with approving and submitting the City’s response.
The underlying subject matter of the report relates to long-term water and wastewater financial planning, capital improvement needs, rate evaluation, grant funding, principal forgiveness, lowinterest financing, and continued investment in utility infrastructure.
RECOMMENDED COUNCIL ACTION:
Approve and authorize submission of the City of Fortuna response to the Humboldt County Civil Grand Jury report “Flowing Forward: Funding the Future of Water and Sewer Systems”; to authorize the City Manager, or designee, to submit the approved response to the Presiding Judge of the Humboldt County Superior Court and the Humboldt County Civil Grand Jury; and to direct staff to place a copy of the approved response on file with the City Clerk and the Office of the Humboldt County Clerk, where it shall remain on file as required by Penal Code section 933.
Consent Agenda vote.
ATTACHMENTS:
Attachment A. City of Fortuna Response to Humboldt County Civil Grand Jury Report “Flowing Forward: Funding the Future of Water and Sewer Systems” Attachment B. Humboldt County Civil Grand Jury Report “Flowing Forward: Funding the Future of Water and Sewer Systems”