MINUTES OF THE SECOND REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, MAY 24, 2022 (ZOOM)
1. CALL TO ORDER
Mayor Ladwig called the Zoom virtual meeting to order at 6:00pm. Council members in attendance: Ladwig, West, Grover, and Kelly and Tuttle. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams.
Approximately (15) participants were present online at the beginning of the meeting.
I. PLEDGE OF ALLEGIANCE
III. APPROVAL OF THE AGENDA
Motion (Grover/West) to approve the agenda as submitted. Passed unanimously.
IV. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Mike Morgan - Trinidac
Encouraged the public to vote. Accused City officials of conducting back-door deals to have campaign signs emoved in town, and criticized Board of Supervisor Steve Madrone. Support Larry O. Doss for 5th Distri upervisor, and noted his complete written statement was submitted to the City Clerk for the recor V. CONSENT AGENDA - None
VI. DISCUSSION/ACTION AGENDA ITEMS
1. Presentation/Discussion from Humboldt County Planning Regarding the Regional Climate Action Plan.
City Planner Trever Parker explained that City staff have been participating in the development of a Regional Climate Action Plan (CAP) that has been spearheaded by Humboldt County and Redwood Coast Energy Authority (RCEA) with all seven cities in the County participating in and supporting the endeavor. Trinidad is so small that the commitments and benefits of the plan for the City are minimal, but it is still an important project.
The County is getting ready to start environmental review of the CAP under the California Environmental Quality Act. Once the Board of Supervises gives the go-ahead, County staff will prepare an Environmental Impact Report, which will undergo its own public review process. The City may eventually adopt the County's EIR and then the CAP.
No decision from the Council was requested. This was an opportunity for the Council and the public to hear a presentation from Humboldt County Supervising Planner Michael Richardson (summary included in the meeting packet), and provide input on the current draft prior to preparation of the final draft that will undergo environmental review.
Michael Richardson presented information regarding the regional cap and requesting from each jurisdiction their willingness to commence with the regional plan being developed.
There was no public comment.
Council comments included:
Kelly: Will the final deliverable include advice for smaller towns like Trinidad? Ladwig: Will the County be able to provide direction toward procuring grant money to assist Trinidad with CAP implementation? Richardson noted the CAP implementation will be working to coordinate cost reduction measures.
Presentation item only. No decision was made.
2. Discussion/Decision to Schedule a Government-to-Government Meeting with the Trinidad Rancheria.
City Manager Naffah explained that an email was received by the Trinidad Rancheria requesting a G2G meeting, and this is the opportunity for the Council to determine who will join the Mayor and Manager at this meeting.
Council comments included:
Kelly: I would consider participating to gain insight on the Rancheria's concerns. 05-24-2022 City Council Meeting Minutes Page 1
Tuttle: I will be traveling in June but will be able to attend virtually.
Ladwig: I support Kelly to join me in representing the City at this meeting.
By consensus, Kelly was appointed to join Mayor Ladwig in a G2G meeting with the Rancheria.
3. Discussion/Decision regarding First Reading of Ordinance 2022-02: Organics Reduction and Recycling Ordinance.
City Manager Naffah explained that the City is working collaboratively in a regional effort on the State mandated organics recycling/reduction effort. The first step is to adopt an ordinance introducing the regulations, which may then open the doors for funding associated with ongoing regional efforts to adopt and establish programs that accept and divert organic waste from the landfill. The ordinance before the Council has been prepared by CalRecycle staff as a model. The request tonight is to hold the first reading.
Council comments included:
Tuttle: Would this include green waste recycling opportunities? Grover: This is a great idea that everyone should support.
Public comment included:
Anita Thompson - Trinidad
A green waste collection program is needed for Trinidad.
Mike Morgan - Trinidad
Echoed Tuttle's comments. It's laughable to worry about organics when we have to drive our green yard waste to McKinleyville or Eureka.
Motion (Kelly/Grover) to waive the full reading and adopt the first reading Ordinance 2022-02 by title only; Organics Reduction and Recycling Ordinance. Passed unanimously.
4. 2022 General Election Calendar and Upcoming Deadlines.
City Clerk Adams presented the election season calendar:
June
• Prepare/Present/Announce the upcoming election season calendar • Propose First Reading of Amended Occupancy Tax Ordinance.
July
• Second Reading of Amended Occupancy Tax Ordinance
• Adopt Resolution Directing Staff to Prepare Occupancy Tax Increase Ballot Measure • Publish Election Notice for (3) Upcoming November Council Seats & Sales Tax Election • Candidate Nomination Period opens.
August
• Filing period for City Council Candidate nominees closes in early August (date to be specified at the regular meeting in June).
• Prepare Impartial Analysis, and Arguments For/Against the Occupancy Tax Increase Measure.
September
• Coordinate and prepare ballot details (candidate statements, ballot proofs, etc.) with County Elections office.
• Publish notification of (3) upcoming Planning Commission vacancies November
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• General Election, Tuesday, November 08, 2022.
December
• When County Elections results are certified, swear in new Council members, appoint Mayor, and re- distribute or confirm Committee/Commissionership assignments.
Public comment Included:
Mike Morgan - Trinidad
Demanded guidance from the City regarding the ballot initiative process.
City Clerk Adams explained that a document has been prepared by the County that is applicable to any jurisdiction, and available to Mr. Morgan. Further, Adams explained, that it is incumbent upon the initiative sponsor to conduct the process in a legal manner, and encouraged to hire an attorney or legal consultant to ensure the code is carefully followed. Election Officials are not agents or consultants for ballot initiatives.
Information item only. No decision was made.
5. Discussion/Decision regarding Distribution of T.O.T. Funds to Community Organizations City Manager Naffah explained in a memo included in the packet, his justification for reducing the total allocation to 80% from the total revenue received, and the proportion delegated to each of the 4 recipient groups; Chamber, Museum, Land Trust, and Library.
Public comment included:
Mike Morgan - Trinidad
I support doubling it. These groups do more for tourism than the City does. Don't reduce it.
Council comments included:
Ladwig: Seems appropriate to only allocate 8% since the City has rescinded the rate from 10%, but I think it's fair to go with the full 10%.
Kelly: I agree that the original 10% is fair and consistent since 2013. Those organizations should not be penalized for what happened with the City's TOT rate. I'm confused with your math (80%). I would advocate for distributing the full 10% at 100% to the groups. West agreed.
Motion (Kelly/est) to appropriate the full 10% of the total, audited TOT funds to the 4 groups requesting, proportionately. Passed unanimously.
6. Continued Discussion/Presentation regarding FY2022-2023 Budget.
City Clerk Adams explained that the annual budget is a reflection of the City's goals and priorities, which is measured through the financial record keeping. At the May 11 meeting, staff kicked-off preparation for the 2023 budget by reflecting back on the current year.
At that meeting, Councilmember Kelly pointed out Trinidad's goals and priorities have been consistent for many years. In 2015 the City did an extensive public survey to help steer the community into the future. Former nto the 2016-2017 budget season. It's remarkable to look back and see how future Council's remained aligne with community values through the years.
Nearly all of the 12 primary goals set by the Council on July 01, 2022 remained in focus through the year. Most passed from one director to the next.
The price-tag of this loss forces the City to reflect on many things from the cost of operating a small water system, importance of maintaining healthy reserves, and staff redundancy.
BUDGET STRUCTURE
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Trinidad's revenue profile is made up of general (unrestricted) revenues, special (restricted) revenues, and grant income. The quality and quantity of services that the City provides are expressed through its spending plan. Expenditures are tracked and presented to the Council each month in the financial statements.
Primary general revenue sources are:
- Sales Tax - General
- Sales Tax - Add-on
- Occupancy Tax
- Property Tax
Rent and Franchise Income (cell tower and harbor leases, utility franchise payments, Town Hall rental) - Miscellaneous (Business & STR Licenses, etc)
Supplemental (restricted) revenue source examples are:
Measure Z Income
COPS Funding
Transportation and Gas Taxes
Grant Funds
Water Sales
- Cemetery Sales
General Fund expense categories include:
- Permanent and Consultant Staff members
Public Safety Expenses (police and fire)
• General utilities and maintenance of public buildings, spaces, streets, infrastructure and associate osts (often referred to as "keeping the lights on" or "overhead" Special Revenue Funds
- Water Fund
- Cemetery Fund
BUDGET TOOLS
The City uses several tools and processes to draft, monitor, and control the budget:
Monthly Financial Statements (Fund Categories, Revenue & Expense Accounts) Annual Audit
Investment Policy
- Reserve Policy (Adopted by Council Resolution).
The primary goals of this preliminary budget meeting discussion are; 1) Summary recap of how the city's finances are structured. 2) Review the financial statements received through March 31, 2021. 3) Discuss how activity from the current year, combined with the dedicated reserves will impact budgeting 4) Request that Council provide any general direction to staff, upon review of discretionary activity that was ntended for the current fiscal year, on any future spending in those same categories ) Identify roadblocks or delays to spending plans to preserve assets (trail maintenance, for example 6) Set the stage for any upcoming meeting in May or June to finalize the budget.
Council questions included
ellv: Would like to know what the cost of the water plant staff was before, and after Ryan DeSmet lef West: Appreciate the thorough presentation.
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Tuttle: Requested a breakdown of how the property tax paid by city residents ends up in the City's General Fund. City Clerk Adams explained that it was complicated, but he would look for an explanation that makes it clear and share it with Tuttle.
Public comment included:
Anita Thompson - Trinidad
Regarding staffing, it was a good decision to increase the administrative staff. We also need 2 full-time Public Works employees. Not a group of part-timers. The State of California recently called upon local water agencies to increase education and outreach on the water crisis/drought status. The City must get Luffenholtz Creek water flow data every month to determine how much is being used. The City should also be reporting on the status and timeline of securing alternate water sources, fixing leaky pipes, and replacing the temporary Van Wycke line. These reports should be included in every meeting packet.
Information item only. No decision was made. City Clerk will continue to develop the budget and present additional information at the first meeting in June.
FUTURE AGENDA ITEMS
- No items were discussed.
ADJOURNMENT: 8:29pm.
Gabriel Adams Steve Ladwig
Trinidad City Clerk Mayor
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