1. Staffing, Succession Planning, and Board Support
The proposal anticipates hiring an Office Manager, Marketing Coordinator, and two part-time conference staff positions, all of which are contingent upon the award of the River Lodge contract. Please provide additional detail regarding:
● The anticipated timeline for recruiting, hiring, and onboarding these positions. ○ To ensure uninterrupted operations during the transition period, the Fortuna Chamber of Commerce will implement a clear succession framework. The CEO/President will maintain direct oversight of River Lodge management until the Office Manager and Marketing Coordinator are fully onboarded. In the event of unexpected delays in hiring or staff turnover, the Chamber’s Board Chair and Executive Committee will temporarily assume supervisory responsibilities. All operational procedures, financial reporting, and client communications will follow documented protocols to maintain consistency. A cross-training program will be introduced within the first month to ensure that key duties—event scheduling, vendor coordination, and customer service—can be seamlessly handled by multiple team members if needed. ○ With the anticipation of this possible merger conversations have already been put into place for the Office Manager and Marketing coordinator positions. The Office manager would be hired immediately upon RFP being accepted, lease and take over date agreed upon and allowing them time to give a 2 week notice at their current employment. ○ The Marketing Coordinator, and two part-time conference staff positions would be onboarded 2 weeks before the official take over date.
○ We intend to advertise the two part-time conference staff positions once we have an official date, we also plan to reach out to local colleges to promote the open positions. We also have a group of Chamber ambassadors and board members that are willing to volunteer during this transition time.
● How River Lodge operations would be managed during the transition period before all positions are filled.
○ Immediately merging the online presence, a public statement will be issued to explain transition. ○ The CEO & Office Manager will immediately meet with the Park & Rec director to obtain copies of the last two years of reservations and inquiries in order to personally reach out to them and let them know the River Lodge is under new direction and would like the opportunity to have their business again.
1 ■ Also would be reaching out to all event coordinators, caterers, photographers, DJ’s and schools in the county informing them on the new direction. ■ If the City is to agree that the takeover date be November 1st, 2026, we would also immediately begin the application process for the Annual Holiday Craft Fair, as long as we have the official authorization to takeover at least 60 days prior to Nov 1, 2026 . ● The Chamber's succession plan should the CEO/President position become vacant or experience extended absence.
○ Implement our Emergency Succession plan that would be adopted into our current policies and procedures should the proposal be accepted.
○ Our plan is to have the Office manager cross trained in all positions should something like this arise. The Board of Directors would also step in and assist where needed, assess the situation, create and execute the plan to fit the need.
■ If the CEO were to vacate the position the Board will temporarily have Office Manager fill the role while flying the position per policies and procedures and finding the next best fit for the role.
● How employee turnover would be managed and the potential operational impacts to River Lodge services.
○ We will be striving to have this be a team environment where employees would be given clear direction, expectations and forward communication. We would develop a full team biweekly meeting schedule as well as a weekly check in meeting with the CEO/Office Manager. Should turnover arise we will implement our succession plan that our board will be reviewing and adopting into our current policies and procedures should the proposal be accepted. ○
● The specific role the Chamber Board of Directors would play in supporting oversight, governance, and operational continuity of the River Lodge.
○ The Fortuna Chamber Board will play a key role in overseeing and governing the River Lodge by adhering to our bylaws, policies, and procedures, ensuring we remain aligned with and fulfill our mission statement. We would be adopting the addition of the River Lodge to our current By-laws and Policies and Procedures at the August 22nd Board meeting should our proposal be accepted.
■ Monthly board meetings that include CEO & Office manager updates. ■ Monthly review of financials as well as continued support by treasurer and CPA ● We will also encourage board members to shadow the CEO and or Manager on any given day to allow them to have a better understanding on the routine and duties required at the River lodge should the need present itself where they are needed to fill in for a day.
2. Initial Operating Cash Flow and Payroll
The proposal anticipates adding approximately $179,400 in annual staffing costs, including a full-time Office Manager and additional event staff. Please provide additional detail regarding how the Chamber intends to fund start-up operations, including the first three payroll cycles, before River Lodge revenues are fully 2 established. Please also identify the sources of working capital available to support River Lodge operations during the initial transition period.
● These projected expenses reflect River Lodge’s commitment to maintaining a high standard of operations while ensuring financial sustainability. The allocation prioritizes essential services such as utilities, staffing, and maintenance, balancing operational efficiency with responsible resource management. This financial structure supports the Lodge’s long-term goal of providing a safe, welcoming, and well-maintained facility for community events and visitors. ● Should we be able to expand our visitor services, other partnership funding would be available to us ● We have met with other community partners that have communicated direct funding should the proposal be accepted but prefer not to be named at this time. ● Elevated business sponsorship to include rebranding and renaming the center’s room names, garden plots, etc.
Expense Category Annual Cost
(USD)
Monthly Cost
(USD)
Dishwasher / Eco Lab $1,807.92 $150.66
MPPA Sanitizing Chemicals $1,314.00 $109.50
Advanced Security $414.00 $34.50
Otis / Lift $897.67 $74.81
AT&T $4,475.43 $372.95
PG&E $27,957.35 $2,329.78
Water & Sewer $12,082.58 $1,006.88
3 WiFi & Fiber Optic $9,564.24 $797.02
Insurance $2,876.00 $239.67
Additional Maintenance /
Repairs
$12,000.00 $1,000.00
CEO $69,000.00 $5,750.00
Office Manager (Full-Time) $48,000.00 $4,000.00
Marketing (Part-Time) $24,000.00 $2,000.00
Conference Worker
(Part-Time)
$19,200.00 $1,600.00
Conference Worker
(Part-Time)
$19,200.00 $1,600.00
Total $253,888.49 $21,157.77
Income Source Annual
Amount
(USD)
Notes
4 Chamber
Annual
Income
$125,000.00 Regular operational revenue generated by
Chamber activities
Tourism &
Marketing
Budget
$70,000.00 Dedicated funds for marketing and tourism
initiatives, including the part-time marketing
position
HLA Grant
Funding
$100,000.00 Conditional grant funding pending proposal
acceptance
Total Projected
Income
$295,000.00 Combined annual income available for River
Lodge operations
Category Annual Total
(USD)
Total Projected
Income
$295,000.00
Total Annual
Expenses
$253,888.49
Net Balance
(Surplus)
$41,111.51
5 3. Building and Grounds Maintenance
The RFP requires the operator to be responsible for day-to-day operations and maintenance of the River Lodge. The proposal references daily inspections, facility cleaning, preventative maintenance, and partnerships with local businesses for services the Chamber cannot perform internally. Please provide additional information regarding:
● Who will be responsible for daily building and grounds maintenance. ● Which maintenance services will be performed by Chamber staff versus outside contractors ● How landscaping, parking lot maintenance, HVAC systems, commercial kitchen equipment, elevator maintenance, and other building systems will be managed.
River Lodge daily building and grounds maintenance will be overseen by the CEO & Office Manager, supported by the Chamber’s staff. Routine inspections and cleaning will occur each morning to ensure all public areas, restrooms, and event spaces remain guest-ready. ● Division of Services
○ Chamber Staff: Responsible for daily cleaning, minor repairs, supply restocking, and coordination of maintenance schedules.
○ Outside Contractors: Engaged for specialized services including HVAC servicing, electrical and plumbing repairs, and deep cleaning of carpets and windows ● Local Partnerships: The Chamber will continue collaborating with local businesses for landscaping, pest control, and seasonal maintenance needs.
● Preventative and Scheduled Maintenance
○ A quarterly maintenance plan will be implemented to address HVAC system checks, kitchen equipment servicing, and exterior upkeep. Preventative measures will be logged and reviewed monthly to ensure compliance with safety and operational standards. ● Landscaping and Grounds Care
○ Landscaping and parking lot maintenance will be contracted to a local provider familiar with the property’s layout and environmental requirements. The Chamber will monitor performance and maintain communication to ensure grounds remain attractive and well-kept year-round.
In addition:
● We intend to request access to previous maintenance records, including contractors who performed the work. Reviewing this information will allow us to connect with local licensed contractors familiar with this facility and its operations.
● If our proposal is accepted, we will begin reaching out to qualified contractors that have been provided to ensure continuity of service. There are numerous qualified contractors in our local area and regional area. 6 ● Whether adequate funding for routine and preventative maintenance has been incorporated into the proposed budget projections and, if so, where those costs are reflected.
Although no current or historical maintenance schedule or documentation of deferred maintenance was provided, we have budgeted adequate initial operating capital for routine and preventative maintenance including bi-annual hood cleaning, grease trap maintenance, HVAC maintenance, and pest control services estimated at $5000 annually.
4. Fourth-Year Rent Calculation
The proposal includes a tiered lease structure with Years 1 and 2 at $1 annually, Year 3 at $24,000 annually, and Year 4 at $36,000 annually. Please provide additional information regarding how the proposed Year 4 annual rent amount of $36,000 was determined, including any assumptions regarding occupancy, revenue growth, operating expenses, or other factors used to support that projection. ● Without knowing what the city’s expectations were going to charge for a lease, we were factoring in repairing the damage done to the current rental status of the River Lodge; we understand that this is far below the current market value. Requesting a low annual rental rate for the first two years will ensure financial stability to ensure successful transition. We would be increasing rental rates in year 3 and year 4 as the clientele builds back up to support the increase of annual lease rate. This model will allow us to use revenue to make upgrades and modifications that will most likely be needed to allow the facility to stay updated in year 1 and 2 examples but not limited to: efficient seating, dishes, flatware, drinkware replacement and possible kitchen equipment upgrades.
● By establishing Fortuna as a Humboldt County destination and visitor information center, we believe the River Lodge will become a central hub for visitors seeking information about local attractions, events, and recreational opportunities throughout the region. This increased visibility will help drive daily visitation, expand facility rentals, and attract new customers to the River Lodge. ● Serving as both an information center and community event hub for Fortuna and the surrounding communities will strengthen regional partnerships, encourage longer visitor stays, and increase spending at local businesses. We believe this approach will contribute to a stronger local economy while positioning the River Lodge as a welcoming gateway to Humboldt County.
5. Revenue Projections and Occupancy Assumptions
The proposal states that River Lodge occupancy would increase from approximately 120 days per year to approximately double that amount in the first year, generating approximately $388,000 in revenue. Please provide additional detail regarding the assumptions used to develop these occupancy and revenue projections, including projected numbers of bookings, event types, rental rates, and anticipated sources of new business.
To address the projected increase in River Lodge occupancy and revenue, our strategy centers on a multi-faceted approach (see below) to restoring facility utilization and expanding community engagement.
Our primary goal is to re-establish the River Lodge as a premier local venue by proactively re-engaging past 7 renters and leveraging our Chamber of Commerce network to value added experiences for renters of the venue and visitors of the city and our region as a tourism hub. We are confident in the return of our established annual events; however, to achieve our growth targets, we are implementing several strategic initiatives:
* Revenue Diversification: We plan to introduce new, consistent programming, including community-focused music and comedy nights, as well as seasonal holiday events. These will generate revenue through a combination of vendor fees and guest admission charges. The Chamber and Visitor center in that desired location would showcase local and regional services to encourage visitors in our area to shop, stay, and play which would in hopes develop more sales tax revenue and TOT. * Educational Programming: We will host quarterly economic development workshops including SBDC classes to enhance our business community and Chamber-led networking luncheons to increase consistent venue usage.
* Regional Partnerships: We are initiating outreach to visitor centers outside of the county to foster cross-promotion and attract destination retreat conferences. * Hospitality Synergy: Our plan is not only to move our current operations of the Chamber and visitor center into the River Lodge, it is to become a destination visitor center that is conveniently located right off the freeway. To be a resource to visitors not only for our city but for our region.
We intend to collaborate and offer comprehensive visitor packages that encourage extended stays, thereby maximizing regional Transient Occupancy Tax (TOT).
* Business Support: We intend to host home-based business expos, providing a dedicated space for local entrepreneurs to network and grow.
Regarding our financial projections, these estimates are based on a balanced assessment of historical performance and anticipated growth. In the event that occupancy rates do not reach our target growth during the initial transition period, our baseline revenue model mirrors the fiscal year 2025-2026 performance of 120 days of occupancy using the current rental rate schedule, ensuring fiscal stability while we actively work to repair the facility's reservation reputation and scale our programming. Including the grant of $100,00 from HLA, our projected expenses are expected to be fully covered. 8