Agenda packet, regular meeting — Trinidad City Council, August 23, 2022

City Council Meeting Agenda: 08-23-2022 Page 1
Posted: Friday, August 19, 2022

NOTICE AND CALL OF A REGULAR MEETING OF THE

TRINIDAD CITY COUNCIL
The Trinidad City Council will hold a regular meeting on TUESDAY, AUGUST 23, 2022, at 6:00 PM
at the Trinidad Town Hall, 409 Trinity Street, Trinidad, CA.

NO CLOSED SESSION
In accordance with Executive Order N-29-20 and for your convenience, this meeting will also be held via videoconference, hosted on the Zoom platform. Learn more about Zoom here: https://zoom.us PUBLIC COMMENT: Public comment may be submitted via email in advance of the meeting, or in an orderly process during the meeting. If you do not have access to email and you would like to provide a written statement, please deliver your comment to 409 Trinity Street, Trinidad CA, by 2:00pm on the meeting day. Email public comments to [email protected]
HOW TO PARTICIPATE: You are invited to participate in person at the Trinidad Town Hall, or by Zoom. The City will publish a direct link to the Zoom teleconference, along with the participant code, on the City Calendar page online at http://trinidad.ca.gov/calendar
To phone in, dial 1-888-278-0296, Conference Code: 685171 Meeting ID: 861 3751 1983 Passcode: 518579 PLEASE NOTE that live meeting logistics will be prioritized. The quality of the Zoom teleconference meeting cannot be guaranteed. Technical challenges experienced by either the participant or the City will not interrupt or halt progress of the meeting.

I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION – No closed session scheduled.

IV. APPROVAL OF AGENDA
V. APPROVAL OF MINUTES – 05-10-2022 cc, 05-24-2022 cc2, 06-14-2022 cc, 06-28-2022 cc2, 07-12-2022 cc, 07-19-2022 closed session
VI. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
VII. STAFF REPORTS – City Manager & Law Enforcement
VIII. ITEMS FROM THE FLOOR
At this time, members of the public may comment on items NOT appearing on the agenda. Individual comments will be limited to 3 minutes or less. Comments should be directed to the Council as a whole and not to individual Council Members or staff. Council and staff responses will be minimal for non-agenda items.

IX. CONSENT AGENDA All matters on the Consent Agenda are considered routine by the City Council and are enacted in one motion. There is no separate discussion of any of these items. If discussion is requested by any Council member, that item is removed from the Consent Calendar and considered separately. A single opportunity for public comment on the Consent Agenda is available to the public.

1. Financial Statements – June 2022

2. Law Enforcement Report – July 2022

3. Voting Delegate Bylaw Amendment Recommendations for the League of CA General Assembly Meeting.

4. Master Services Agreement Task Orders 3 & 4, Bypass Flow Telemeter Integration, and LSAA Compliance Reporting.

City Council Meeting Agenda: 08-23-2022 Page 2
XII. DISCUSSION/ACTION AGENDA ITEMS

1. Discussion/Decision regarding Terms of Drinking Water System Emergency Intertie Agreement MOA Between the City of Trinidad and Westhaven Community Services District.

2. Discussion/Decision regarding Appointment of Councilmember to the Tsurai Management Team.

3. Discussion/Decision regarding Appointment of Two (2) Councilmembers to Mediation Between the City and Tsurai Ancestral Society.

4. Conduct Short-Term Rental License Lottery for Applicants on the Waitlist through October 2021.

5. 2022 General Election Calendar Update.

XIII. FUTURE AGENDA ITEMS
XIV. ADJOURNMENT
APPROVAL OF MINUTES FOR:

MAY 10, 2022 CC
MAY 24, 2022 CC2
JUNE 14, 2022 CC
JUNE 28, 2022 CC2
JULY 12, 2022 CC
JULY 19, 2022 SCC CLOSED REPORT
Supporting Documentation follows with: 21 PAGES
July 12 meeting minutes will be prepared and reviewed at the September meeting.
05-10-2022 City Council Meeting Minutes Page 1

MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, MAY 10, 2022 (ZOOM)
I. 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.

II. TELECONFERENCE MEETINGS

1. Continued Resolution 2021-12; Authorizing Continued Use of Virtual Meetings.

The Council unanimously reaffirmed Resolution 2021-12 by consensus.

III. PLEDGE OF ALLEGIANCE
IV. CLOSED SESSION

1. Personnel Exception 54957 - City Manager Performance Evaluation

2. Labor Negotiations 54957.6 – Chief Water Plant Operator Position V. RECONVENE TO OPEN SESSION – No reportable action taken.

VI. APPROVAL OF THE AGENDA
Motion (Grover/West) to approve the agenda as submitted. Passed unanimously.

VII. APPROVAL OF MINUTES – 04-12-2022 cc
Mike Morgan, public comment: Please refer to the business as Trinidad Bay B&B Hotel.

Motion (West/Kelly) to approve the 02-22-2022 cc2 minutes as amended. Passed unanimously.

VIII.COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
West: Attended the HCAOG meeting. Announced Bike Month in May, Last Chance Grade update, Broadway Safety Corridor, Indianola safety improvements, and several housing studies. Attended Trails Committee meeting and discussed replacing deteriorated trail markers and repairing steps to Trinidad Head trail.

Kelly: Attended the California Coastal National Monument Gateway meeting, working on the strategic plan.

Hoping to hold a Water Advisory Committee meeting in June to select a new Chairperson and discuss the purpose and scope of the Committee moving forward.

Grover: Attended a meeting with West, the Tsurai, and Coastal Conservancy. Our G2G policy is working and we’re focused on improved communication. Also attended my last meeting with RCEA, introduced Tuttle as new representative.

Tuttle: Attended Ad-Hoc meeting with Yurok Tribe. The proposed Memorial Lighthouse location is not acceptable to them. Kelly also attended, stating G2G meeting process clarification was requested.

Ladwig: Attended the RREDC meeting and discussed housing inventory in relationship to Cal Poly’s plan to grow. Working together with other entities in the County on this situation.

IX. STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet. Also noted Verizon is in the final phase of decommissioning the Trinidad Head site. Now served by Quarry Road and Westhaven Drive cell towers. Stormwater Project should be complete by early June.

Attended a meeting with City Engineers and PWA representatives discussing vacant lands near the Water Treatment Plant to possibly accommodate additional storage of pre-treated water. Phil Godman of Coleman Engineering will present an update on water treatment operations.

Paula Levine – Trinidad Area Water Customer
PWA was supposed to provide an itemized invoice each month. What was the cost of the parcel inventory project? How much did PWA bill for the 3 prior tasks? CM Naffah noted that the City has not received the invoice for the parcel inventory yet.

Mike Morgan – Trinidad
05-10-2022 City Council Meeting Minutes Page 2
Our AT&T coverage has greatly improved recently.

X. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Mike Morgan – Trinidad
Regarding Occupancy Tax, read a summary of a letter sent to the Council. Our business has not been provided guidance to refund overpaid tax to guests. We want a letter from the City explaining how they could receive a refund. The City is dragging this out. Also request guidance to place an initiative on the ballot in November.

Patti Fleschner – Trinidad
Attended the G2G meeting last week. There is a Coastal Development Permit pending before the California Coastal Commission. It might be useful to hold a meeting between the City, Rancheria, TAS, and Yurok Tribe.

There is so much mis-information out there. Getting everyone together may be a good way to share information.

XI. CONSENT AGENDA

1. Staff Activity Report – April 2022

2. Financial Statements – March 2022

3. Law Enforcement Report – April 2022

4. Resolution 2022-07; Request November General Election Consolidation with the County of Humboldt.

5. Community Yard Sale Event Announcement
Motion (Grover/Kelly) to approve the consent agenda as submitted. Passed unanimously.

XI. DISCUSSION/ACTION AGENDA ITEMS

1. Water Plant Operations Update
Phil Godman from Coleman Engineering provided an update on Treatment Plant operations. We have changed the run time of the Plant, which has lowered the amount of chlorine needed to reach farthest sections of distribution system. Discovered rust on the storage tank ladder, exercising valves, and updating the current procedure manual for future operators.

Ladwig and Grover thanked Coleman Engineering for their services.

Public comment included:

Paula Levine – Trinidad water customer
Can the public tour the Water Plant?
City Manager Naffah explained that a tour can be scheduled through the Water Advisory Committee.

Presentation item only. No action taken.

2. Discussion/Decision regarding Second Reading of Ordinance 2021-02; Amending Section 17.56.160 (6.26 as Certified) of the Trinidad Zoning Ordinance Regulating Short-Term Rentals.

Mayor Ladwig recused himself from the discussion due to conflict. Mayor Pro-Tem West led the discussion.

City Manager Naffah provided a brief summary of the item, stating the City Ordinances require two readings not less than 5 days apart. The Council approved the first reading of Ordinance 2021-02 at the April 12, 2022 meeting. No changes have been made to the Ordinance since the first reading.

If the second reading is accepted, a certified copy of the full ordinance will be placed in three (3) public places prescribed by ordinance (Town Hall, Post Office, Murphy’s Market Bulletin Board), along with a summary of the ordinance complete with votes cast published within 15 days following adoption in the Mad River Union.

Ordinance 2021-02 will become effective upon certification of the Coastal Commission. That date is currently unknown but the Council will be kept informed when that is expected to occur. 05-10-2022 City Council Meeting Minutes Page 3
Public comment included:

Paula Levine – Trinidad Area resident
First come, first serve is a better policy for issuing available licenses.

Mike Morgan – Trinidad
Lottery is absurd.

Dick Bruce – Trinidad
A significant amount of time has been invested in this ordinance revision. Please move it forward.

Katrine Homan – Trinidad Area resident
Agree with Paula Levine. The lottery seems unfair.

Council comments included:

Grover: Happy to support recommendations from Committees and Commission as advised.

Kelly: Perhaps improvements can be made to the lottery process during the next revision, but ready to move this forward. Tuttle agreed.

Motion Kelly/Grover to waive full reading and adopt second reading of Ordinance 2021-02 by title only; Amending Section 17.56.160 (6.26 as Certified) of the Trinidad Zoning Ordinance Regulating Short-Term Rentals. Motion passed 4-0-1. Ladwig recused.

3. Discussion Decision regarding Second Reading of 2022-01; Amending Section 2.20.070 of the Trinidad Municipal Code Relating to the Election of the Planning Commission Chair.

Mayor Ladwig rejoined the meeting. City Manager Naffah explained that Ordinances require two readings not less than 5 days apart. The Council approved the first reading of Ordinance 2022-01 at the March 08, 2022 meeting. No changes have been made to the Ordinance since the first reading.

Ordinance 2022-01 will become effective on the 31st day following approval (June 10, 2022).

There was no public or Council comments.

Motion (Grover/West) to waive full reading and adopt second reading of Ordinance 2022-01 by title only; Amending Section 2.20.070 of the Trinidad Municipal Code Relating to the Election of the Planning Commission Chair. Passed unanimously.

4. Update/Continued Discussion regarding Returning to Live City Council and Planning Commission Meetings.

City Clerk Adams explained that at the regular meeting held on April 12, staff presented Council with several examples of how other cities and local agencies are implementing the hybrid meeting experiment, along with outlining some of the next steps needed to reach the goal of testing a system in June.

The basic goals for May 10 were to lay the groundwork to start testing systems and if possible, test the MCSD system. Laying the groundwork included extending a reliable and secure wireless network through the Town Hall. Due to scheduling challenges and finding the right expert, that task will be completed on Wednesday, May 11 (one day shy of our target date). Kabe Miller with Cornerstone Computers has been hired to complete the installation. Staff may attempt to use the existing, inferior wireless network to test the MCSD system prior to the meeting, but may choose to wait until after the new network is installed on the 11th. Either way any information gathered will be shared during this agenda discussion on May 10.

The team that has been assembled to assist City Staff in implementing a hybrid meeting format is Kabe Miller (Cornerstone Computers), Joey Blaine (technical consultant), and Juan Carillo (Access Humboldt).

The Council voiced support for finding the best quality solution that is suitable for Trinidad was the best approach. As noted at the April meeting, it is likely that sourcing and procuring the right equipment may be a 05-10-2022 City Council Meeting Minutes Page 4
challenge, so to unveil a test-run at the June meeting will likely mean a phased approach to a more permanent concept.

Staff is currently sourcing the following equipment, with the goal of having them test ready by early June:
- Mounted, pull-down, low-profile projector screen for the Town Hall. - Modern Projector to display zoom participants and meeting presentations in hi-resolution and brilliance in well-lighted meeting rooms (the old projector was designed to display on dark settings, and lowresolution). - Web-Cam and accessories suitable for capturing the active speaker in the room.

Council comments included:

Grover: I have not attended a hybrid meeting yet and don’t have anything new to share.

West: HCAOG has not held a hybrid meeting yet.

Public comment included:

Mike Morgan - Trinidad
Virtual meetings are not for people scared of covid, they are only to be held during emergencies. Avoid mandates, provide guidance, and assume there will be a Covid spike. Meet in person.

Presentation item only. Staff update and information sharing. Council is welcome to share any experience they’ve had recently with hybrid meetings that may be helpful. Staff will continue to prioritize the goal of introducing a hybrid meeting format as soon as possible without compromising other tasks of critical importance such as the upcoming budget and election deadlines.

5. Discussion/Decision regarding Appointment to Fill the Vacancy on the Short-Term Rental Advisory Committee.

Mayor Ladwig recused himself from this discussion due to conflict. Mayor Pro-Tem West led the discussion.

City Manager Naffah explained that the City of Trinidad received a letter of resignation from STR Committee Member Dorothy Cox, effective 12/16/19. Ms. Cox represented the resident/or public position on the committee, therefore the vacancy to be filled must be from someone that lives inside the city limits and has no direct tie to the STR industry. The position has been vacant since.

The current committee members are:

Diane Stockness Planning Commission Liaison
VACANT City/General Public Representative
Dick Bruce City/General Public Representative
Jan Nash-Hunt STR Owner
Joe Moran STR Manager
The City Manager, or his/her designee, serves as primary staff liaison to the STR Committee.

The primary role of the STR Committee is to advise and provide recommendations to the City Council, staff, and Planning Commission on matters relating to Short Term Rentals in the City of Trinidad.

The recruitment flyer and Resolution creating the STR Committee is attached for reference. The City requested letters of interest include brief information that would help the Council determine the candidates suitability for the committee.

At the April 12 meeting, the packet included a letter of interest to fill the vacant seat from Scenic Drive (in-City limits) homeowner Dan Henry. During public comment, Trinidad Bay Bed & Breakfast owner Mike Morgan claimed he too submitted a letter of interest, but it was not included in the packet.

The Council agreed to postpone the decision, extend the filing period one month, and include Mike Morgan’s letter of interest for consideration.

On April 14, Parker Creek Drive resident Jacques Beaupre submitted a letter of interest to serve on the Committee. Mr. Beaupre meets the criteria to serve as an in-City, general public representative without any ties or associations with the STR or lodging industry.
05-10-2022 City Council Meeting Minutes Page 5
On April 18, candidate Dan Henry withdrew his name from consideration due to objections voiced regarding his part-time residency status.

Public comments included:

Patti Fleschner – Trinidad
We are lucky to have both Morgan and Beaupre in our community. Mr. Morgan’s experience on Council and Planning Commission would make him an excellent addition to this committee.

Mike Morgan - Trinidad
Read comments submitted and included in the public comment packet for this meeting concerning the appointment process, his commitment to truth and fairness, defending guests from unconstitutional taxes and disclosures, various experiences that make him the most eligible candidate for this position.

Dick Bruce – Trinidad
The person selected should have no connection to the lodging industry whatsoever, and have a balanced view within the committee. I appreciate what Mike said, and may consider him if a resident had not applied.

However, I encourage you to appoint Jacques Beaupre to the committee.

Paula Levine – Trinidad area
It’s a good idea to have Mike on the committee. He has a hotel, not an STR.

Katrine Homan – Trinidad area
I support appointing Mike Morgan.

Council comments included:

Kelly: After reviewing the Resolution, a Councilmember cannot be on the STR Committee. Because Morgan intends to run for Council in fall, I would like to encourage him to do so, and I support Beaupre since he is distanced from the industry and meets the resident description.

West: I helped set this committee up and want to honor the purpose of hearing a homeowner/resident’s viewpoint.

Motion (Kelly) to nominate Jacques Beaupre to the STR Committee. Motion failed due to lack of second.

Motion (Grover/Tuttle) to appoint Mike Morgan to the STR Committee. Motion failed due to a tie; NO – Kelly, West. YES – Grover, Tuttle.

Morgan withdrew his interest in joining the committee.

Motion (Kelly/Grover) to nominate Jacques Beaupre to the STR Committee. Passed 4-0.

6. Presentation/Update regarding the FY2022 Budget Status and Upcoming FY2023 Budget Preparation Timeline.

City Clerk Adams explained that relative to 2020 and 2021, Fiscal Year 2021-2022 began with stability, and setting a hyper-focus on the City’s drinking water system due to the ongoing drought situation. The FY2022 budget was adopted on June 21, 2021. In July the City learned that the Administrative Support position would soon be vacant with the resignation of Angela Zetter, and in late August the City was informed that long-time Chief Water Plant Operator Ryan DeSmet would be resigning in October. Those two events alone send significant shock-waves through the City’s operational reality.

In response, the City was fortunate to recruit two new administrative support positions and welcomed Anton Souza and Jennifer Hakenen to the team in September/October. Both Anton and Jennifer spent the winter getting their “sea-legs” by learning the ropes and have quickly become invaluable assets to the City, providing both reliability and value to the organization.

On the other hand, the Water Department budget was impacted significantly by the departure of Ryan DeSmet.

Probably the biggest concern of both staff and the public is the current cost incurred by hiring an independent engineering firm (Coleman Engineering) to operate the Plant in the interim. Staff will shed some light on where the 05-10-2022 City Council Meeting Minutes Page 6
Water Department stands as of March 30, and prepare to forecast where it will end up at year end as the process unfolds through June.

The first step to kick-off the 2021-2022 Budget Season is to take a brief look at the current year – measuring achievements, shortfalls, or deviations in the Council’s spending plan, along with identifying operation changes and/or unexpected revenue windfalls that modified the City’s course along the way.

The primary goals of this preliminary budget meeting discussion are; 1) To examine the financial statements received through March 2022. 2) Review significant highlights in spending (or not spending) and revenues in the primary departments. 3) Plot a course from now through June for continued discussions that will lead to an adopted budget by the regular meeting in June.

Council comments included:

Ladwig: Want to see 2-3 year effects on staffing, and make sure we’re smart with money and able to maintain goals and priorities.

Kelly: Would like to see a spending pie chart by expense category, and noticed goals and priorities from 2015 have been carried out. Public safety is also a needed discussion topic. Other cities spend significantly more on public safety and I’d like to see private security option if HCSO isn’t able to provide additional deputies.

West: Keep the process going, and look into the future at the next meeting.

No public comments.

Staff will return at the next meeting with additional information to build the 2023 Budget.

7. 2022 General Election Calendar and Upcoming Deadlines.

City Clerk Adams provided additional information regarding upcoming Occupancy Tax ballot measure benchmarks, and reminded the Council that steps will be taken to meet the deadlines later in May and June.

There were no public or Council comments.

Information item only. No action taken.

FUTURE AGENDA ITEMS
- No items were discussed.

ADJOURNMENT: 8:45pm.

Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Steve Ladwig
Trinidad City Clerk Mayor
05-24-2022 City Council Meeting Minutes Page 1

MINUTES OF THE SECOND REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, MAY 24, 2022 (ZOOM)
I. 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.

II. 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 – Trinidad
Encouraged the public to vote. Accused City officials of conducting back-door deals to have campaign signs removed in town, and criticized Board of Supervisor Steve Madrone. Support Larry O. Doss for 5th District Supervisor, and noted his complete written statement was submitted to the City Clerk for the record.

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 2
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.

October
• Publish notification of (3) upcoming Planning Commission vacancies November
• General Election, Tuesday, November 08, 2022.
05-24-2022 City Council Meeting Minutes Page 3
December
• When County Elections results are certified, swear in new Council members, appoint Mayor, and redistribute 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/West) 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 Mayor Julie Fulkerson summarized the findings presented to the Council as part of the budget process leading into the 2016-2017 budget season. It’s remarkable to look back and see how future Council’s remained aligned 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 of them make up the backbone of what the City is obligated to provide, and what residents believe are core services they desire. A few priorities, however, were not met due to the resignation of the Water Plant/Public Works Director. This loss represented the end of nearly 40 years of institutional water knowledge that was 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
05-24-2022 City Council Meeting Minutes Page 4
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 associated costs (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 for 2023.
4) Request that Council provide any general direction to staff, upon review of discretionary activity that was intended for the current fiscal year, on any future spending in those same categories. 5) 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:

Kelly: Would like to know what the cost of the water plant staff was before, and after Ryan DeSmet left.

West: Appreciate the thorough presentation.
05-24-2022 City Council Meeting Minutes Page 5
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.

Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Steve Ladwig
Trinidad City Clerk Mayor
06-14-2022 City Council Meeting Minutes Page 1

MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, JUNE 14, 2022 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Ladwig called the live-hybrid meeting to order at 6:00pm. This was the first meeting held in person since March 2020. Council members in attendance: Ladwig, West, Kelly in-person. Tuttle and Grover by teleconference. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams. Approximately (14) participants were present online at the beginning of the meeting.

II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION

1. Conference with Legal Counsel – Existing Litigation (Gov. Code Section 54956.9: City of Trinidad v. Trinidad Bay Bed & Breakfast/Mike Morgan (Humboldt Co. Superior Court Case No. CV2100112 IV. RECONVENE TO OPEN SESSION – No reportable action taken.

V. APPROVAL OF THE AGENDA
Motion (West/Kelly) to approve the agenda as submitted. Passed unanimously.

VI. APPROVAL OF MINUTES – Minutes continued to the next meeting.

VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
West: Nothing to report.

Kelly: Attended the Convention & Visitors Bureau meeting. Discussed Measure J, Cruise Ships in Humboldt Bay. Would be better to have a Chamber of Commerce member attending these meetings. Attended the Planning Commission meeting. Richard Johnson is the new Chairperson, Hakenen Vice-Chair and Water Advisory Committee, and Hopkins was appointed to the Trails Committee. Attended the Water Advisory Committee meeting on June 09. Several topics discussed including the charter, grants, rainwater collection, and conservation. Next meeting will be held in July. Humboldt Bay Municipal Water District meeting discussed moving water to the Rancheria through the MCSD system.

Tuttle: Attended the RCEA meeting.

Ladwig: Met for a Government to Government meeting with the Rancheria and discussed several topics.

VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet. Stormwater project is progressing. Paving will happen after July 05, with the project complete by late July. Verizon cell service on Trinidad Head has been turned off. The area is receiving service from 2 local towers, one at the Quarry and the other off 8th Avenue in Westhaven. Cell site on Trinidad Head will be decommissioned when bird nesting season is over. Chamber update, and Community Yard Sale was a success.

IX. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Mike Morgan – Trinidad
Read from a statement submitted for public record. Concerned for prolonged settlement discussions with he and his business, and claimed that trust building starts with the Council and requested that a settlement be reached asap.

Paula Levine – Trinidad Water Customer
Grants are being obtained to replace water storage tanks that aren’t leaking. Why? We wouldn’t need a new tank, an expensive staff of T3 Certified Operators, or to spend millions on an intertie if we invested our time and money in connecting to Humboldt Bay Municipal Water.

X. CONSENT AGENDA

1. Staff Activity Report – May 2022

2. Financial Statements – April 2022
06-14-2022 City Council Meeting Minutes Page 2

3. Law Enforcement Report – May 2022

4. Resolution 2022-08; Submitting an LCP Amendment to the Coastal Commission to Amend the Short-Term Rental Ordinance.

5. Resolution 2022-09; Adopting a List of Projects for FY2022-2023 Funded by the SB1 Road Repair and Accountability Act of 2017.

6. Authorize City Manager to Negotiate and Sign Scopes of Work with Consultants GHD and SHN for the Water Storage Tank and Pipeline Replacement Project Grant.

City Grant Administrator Becky Price-Hall summarized the item from a staff report included in the meeting packet.

Public comment included:

Paula Levine – Trinidad Water Customer
The costs are adding up for this project. The tanks aren’t leaking. Please re-evaluate your decision to connect to Humboldt Bay Municipal.

Motion (West/Grover) to approve consent agenda item 6 as submitted. Passed unanimously.

7. Discussion/Decision regarding Trinidad-Westhaven Emergency Intertie Agreement and Grant.

City Manager Naffah and Grant Administrator Becky Price-Hall summarized the Intertie agreement.

There was no public comment.

Motion (West/Grover) to approve consent agenda item 7 as submitted. Passed unanimously.

Motion (West/Grover) to pull agenda items 6 & 7 for clarification, and approve the remaining consent agenda as submitted. Passed unanimously.

XI. DISCUSSION/ACTION AGENDA ITEMS

1. Discussion/Decision regarding Second Reading of Ordinance 2022-02; Organics Reduction and Recycling Ordinance.

City Manager Naffah explained the first reading of this ordinance was held last month, and tonight is the second reading.

There were no Council or public comments.

Motion (West/Kelly) to waive the full reading, and adopt the Second Reading of Ordinance 2022-02; Organics Reduction and Recycling by title only. Passed unanimously.

2. Discussion/Decision regarding First Reading of Ordinance 2022-03; Tourist Occupancy Tax Ordinance Amendment.

Mayor Ladwig recused himself due to a conflict, and Mayor Pro-Tem West led the discussion.

City Attorney Karen Robebuck explained that on April 12, 2022, the City Council directed staff to review, consider and propose amendments to the City of Trinidad Tourist Occupancy Tax “TOT” Ordinance for City Council consideration at a future Council meeting and, to the extent required by applicable law, submission to the voters of the City of Trinidad for approval and/or ratification.

As the City Council is aware, the City’s TOT Ordinance is in Chapter 3.20 of Title 3 of the Trinidad Municipal Code. This Chapter was originally enacted in April 1992 with an amendment later in calendar year 1992. It includes provisions allowing the City to set the collected tax rate by Council Resolution, and a rate increase was adopted by the Council in calendar year 1993 (6% to 8%). The ordinance was amended by the Council in 2011 (8% to 10%) and an additional increase was proposed the first quarter of 2022 (10% to 12%).

Concerns were raised as to the rate increase so the resolution increasing to 12% was rescinded by the Council in March 2022 and the rate was reduced to 8% by the Council in April 2022.

The proposed tax measure, if approved by the voters in November, would raise the tourist occupancy tax rate from 8% to 12%, resulting in an estimated $65,000 annual revenue increase. The funds raised by this measure would be collected by the City and remain with the City. 06-14-2022 City Council Meeting Minutes Page 3
The City Council does not have the authority to establish or raise taxes, only to put a measure on the ballot for voter approval. In order to place a tax measure on the November 8, 2022 ballot, the City Council must approve the submission of the proposed Ordinance to the voters by a 2/3 vote of the City Council (at least 4 members).

The ordinance shall take effect only if approved by a majority of the voters voting on the measure at the November 8, 2022, General Municipal Election and shall become effective ten (10) days after the City Council declares and certifies by resolution the results of the election and that the measure was approved by a majority of the voters voting thereon.

If the proposed tax measure is approved by the voters in November, the 12% tax rate would be operative April 1, 2023. Until that time, the existing 8% tax rate would be collected. Comments received by City staff for the April 12, 2022 Council meeting noted that it would be helpful for operators to have sufficient notice when there are TOT rate changes. The intent of providing the April 1, 2023 operative date for the TOT is to provide sufficient notice to operators. Additionally, because the TOT is reported and remitted to the City on a quarterly basis, it would provide a convenience to the operators for the rate change to occur at the beginning of a new quarter.

In addition to the proposed tax rate increase, the proposed Ordinance, among other things, updates the definitions of “lodging house,” “operator,” “rent,” “tourist,” and includes a definition of “online travel company.” Some additional modifications are for the tax administrator to provide written notice if an assessment determination is made, changes to the appeals process and record keeping, and clarifying the refund process, and removal of criminal penalties for violation of the Ordinance. A copy of the proposed ordinance with strikeout of the existing language and underlining of the proposed language is attached to this report.

The proposed Ordinance includes the following material provisions:

1. Increases the tourist occupancy tax from eight percent (8%) to twelve (12%).

2. Provides that the Ordinance will not take effect unless and until approved by a simple majority of the qualified voters.

Once the Ordinance has been approved by the Council (Item 4 of the Staff Recommendation), the proposed ordinance is then submitted to the voters for adoption. This is accomplished via the proposed Resolution (Item 5 of the Staff Recommendation). As part of the Resolution, the Council is approving the Ballot Title and Ballot Question. The resolution includes the following:

The Resolution further sets dates for submission of arguments for or against and authorizes the Mayor to submit a written argument in support on behalf of the Council.

Staff Recommendation:

1. Receive a report from staff regarding a proposed ballot measure to levy an increase in the existing tourist occupancy tax rate from eight percent (8%) to twelve percent (12%) within the City to fund essential public safety services, including law enforcement, roads, and essential services.

2. Take public comment.

3. Council discussion.
06-14-2022 City Council Meeting Minutes Page 4

4. Introduce, on first reading by title only, and submit to the voters Ordinance No. 2022-03, to levy an increase to the existing tourist occupancy tax rate from eight percent (8%) to twelve percent (12%) within the City to fund essential public safety services, including law enforcement, roads, and essential services, subject to approval by the voters at the November 8, 2022, general municipal election. (Two third vote of the Council required)

5. Adopt Resolution No. 2022-10, which:
a. Submits Ordinance No. 2022-03 to the qualified voters at the November 8, 2022 general municipal election; b. Requests the election on the ordinance be consolidated with the Statewide General Election; c. Sets dates for submission of arguments for and against the proposed tax measure; d. Sets dates for submission of rebuttal arguments;
e. Authorizes the Mayor to submit a written argument in favor of the measure on behalf of the Council; f. Requests the City Attorney prepare an impartial analysis of the measure; and g. Agrees to reimburse the County for the costs of conducting the election on the measure.

Financial Impact:

The estimated cost to conduct the election on the ballot measure is approximately $5,000.

There were no Council or public comments.

Motion (Grover/Kelly) to introduce and accept the first reading by title only (with corrected typos), and submit to the voters Ordinance No. 2022-03, to levy an increase to the existing tourist occupancy tax rate from eight percent (8%) to twelve percent (12%) within the City to fund essential public safety services, including law enforcement, roads, and essential services, subject to approval by the voters at the November 8, 2022, general municipal election. Passed 4-0-1. Ladwig recused.

3. Discussion/Decision regarding Resolution 2022-10; Calling for an Election to Increase the Tourist Occupancy Tax Rate from 8% to 12%.

City Attorney Karen Roebuck covered the need for this Resolution in Discussion Item 2.

There were no Council or public comments.

Motion (Kelly/Grover) to adopt Resolution 2022-10; Calling for an Election to Increase the Tourist Occupancy Tax Rate from 8% to 12%, with typographical errors corrected. Passed 4-0-1. Ladwig recused.

4. Continued Discussion/Presentation regarding FY 2022-2023 Budget.

City Clerk Adams explained that at the May 24 meeting, the discussion was focused on the City’s financial structure, the tools used to create and manage the budget, and how priorities set by the City Council (past and present) influence where the City is today.

Ideally the City should be performing tasks that align the budget throughout the year to ensure invoices are coded correctly, and that variations in budgeted revenues and expenditures are reflected. The City Clerk’s office, with support from the Grant Administrator, functions as the Controller.

This past year was a transition period requiring key staff to shift duties due to the resignation of the Chief Water Plant Operator/Public Works Director in September. The City Manager spent a significant amount of time finding and recruiting an interim Water Plant Operator, and the City Clerk switched hats to Human Resources, IT, Public Works, and new employee training. These adjustments sidelined some of the typical duties such as budget monitoring throughout the year, so the past few weeks have been spent reconciling that.

It appears that the General Fund has sustained a healthy flow of revenue as anticipated, but is showing signs of a plateau that may occur between October 01-December 31, 2022. Occupancy Tax will fall short of the June 30 expectations due to the tax rate issue and non-issuance of several vacant permits. Verizon plans to be completely off Trinidad Head by the end of June, so no further revenue is anticipated. Interest earnings have declined considerably, and we’re still not sure when the County Auditor will release the City’s property tax payments.

Sales Tax is showing signs of yet another banner year at the close of FY2022 on June 30. Rising prices on everything from gas to consumer goods will likely result in above average revenues for quarter ending 06-14-2022 City Council Meeting Minutes Page 5
September 30. Spending will decline, however, if inflation continues at the current rate so the City is budgeting conservatively when it comes to sales tax revenue expectations following the busy summer quarter.

What we learned from 2021-2022 included (but not limited to):
• Losing a long line of institutional knowledge can be very expensive. The price-tag of losing the Water Plant/Public Works Director forced the City to reflect on many things from the cost of operating a small water system, importance of maintaining healthy reserves, and staff redundancy. • Due to requests made by the Trinidad Rancheria to receive City water, the current drought conditions, Water Plant Director and support staff resignations, and demands made by the greater Trinidad area for the City to look inward and focus on the small water system supplied by Luffenholtz Creek, one of the Council’s primary budget objectives was to focus on the Water System. The attention required to nurse the system on all fronts turned out to be very expensive. Staff believes this transitional period will likely continue through the 2023-2024 year, thereby raising costs considerably to operate the system. • Technology is becoming a necessity, but integrating and maintaining it comes at a price as well. From Videoconferencing, to the great migration of 2020 from analog to digital, all layers of government have shifted to online reporting and communication systems.
• The price of doing business is increasing, and the flipside of 2021-2022 will be not only maintaining a focus on developing and retaining staff, but also to optimize the revenue sources to keep expenses in check.

Moving forward to FY2022-2023:

Staff development is key to making sure the rails are set to carry out the City’s objectives. Everything from maintaining City assets (buildings, public spaces, etc.) to maximizing grant funding opportunities to supplement capital improvements.

Over the past 3 years the City has been able to add to the General Fund reserves by running lean and not achieve the full potential of its spending plans due to staff shortages. As this year shows all the signs of a revenue plateau year, staffing investments must be made, at a cost, to ensure the City meets all of its objectives into the next 5-years.

The Water Fund, however, has been running a structural deficit that has to be addressed. On one hand the City is receiving a tremendous amount of grant revenue to shore up some key operating systems (Intake, Storage, and Distribution lines), the cost of running the plant on a day to day basis and maintaining a strategic reserve fund will exceed the rate payer revenues by a long shot in the current and years ahead. Until the Plant gets handed back to the City (from Coleman Engineering) it will be difficult to perform an adequate rate study.

The goal is to be able to initiate that process by October as it will take several months to conduct.

As much as Staff would like to recommend an ambitious outlook to provide the City with new and improved services, it is preferred that we continue to prioritize this time on restructuring and optimization efforts.

The primary goals of this meeting discussion are;
1) Summarize progress towards approval of the draft budget by June 28. 2) Summarize the findings, in words, that are lessons learned from the prior year that help address what staff is capable of handling in the upcoming year.
3) Explain the tools used to craft the budget, and review the General Funds; Admin, Police, Fire, Public Works. 4) Review the Water Fund preliminary budget.
5) Open the discussion and take questions, guidance from the Council based on what is presented to fine-tune the budget for the final phase and presentation on the 28th.

Council comments included:

West: Would like to see building improvements added to the budget.

Ladwig: Continue investment in staffing to help make the City run. Appreciate the 3-year plan, and also would like to recognize how important the Grant Administrator position is. 06-14-2022 City Council Meeting Minutes Page 6
Proposed action:

Staff will take information received at this meeting, incorporate Council feedback into the analysis process, and return to the next meeting in June with a final draft.

5. 2022 General Election Calendar and Upcoming Deadlines.

City Clerk Adams highlighted the following benchmarks with the upcoming election:

June
• Prepare/Present/Announce the upcoming election season calendar • Propose First Reading of Amended Occupancy Tax Ordinance.

September
• Coordinate and prepare ballot details (candidate statements, ballot proofs, etc.) with County Elections office.

October
• Publish notification of (3) upcoming Planning Commission vacancies November
• General Election, Tuesday, November 08, 2022.

December
• When County Elections results are certified, swear in new Council members, appoint Mayor, and redistribute or confirm Committee/Commissionership assignments.

No Council or Public comments. Information item only.

FUTURE AGENDA ITEMS
- Council requested a General Plan element when ready.

ADJOURNMENT: 8:30pm.

Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Steve Ladwig
Trinidad City Clerk Mayor
06-28-2022 City Council Meeting Minutes Page 1

MINUTES OF THE SECOND REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, JUNE 28, 2022 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Ladwig called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Ladwig, West, Tuttle in-person. Kelly by teleconference. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams. Approximately (10) participants were present online at the beginning of the meeting.

II. PLEDGE OF ALLEGIANCE
III. APPROVAL OF THE AGENDA
Motion (West/Tuttle) 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.) Paula Levine – Trinidad Water Customer
Read from a written statement included in the public comment record/packet for the meeting.

V. CONSENT AGENDA - None
VI. DISCUSSION/ACTION AGENDA ITEMS

1. Discussion/Decision regarding Resolution 2022-11; Adopting the FY 2022 City Budget City Clerk Adams explained that building up to the regular meeting on June 14, staff reviewed several factors that occurred during FY2022 that made anticipating the FY2023 budget process a challenge. Workforce dynamics, increasing costs, loss of water/public works staff continuity, and revenue fluctuations scrambled an organizational structure that Trinidad has been used to for several decades. Economic changes, environmental pressures, and a heightened awareness of how delicate the Luffenholtz Creek water supply is, force the City to recalibrate its approach to providing the core services this community is used to.

The current draft of the 2023 Budget aims to provide transitional stability for the turbulence experienced last year. Staff emphasizes that this is a “working draft” that will need adjustments as the year progresses. It accurately reflects the desires of the community based on priorities set by the Council. The draft includes revenue and expenditure budget worksheets for each of the fund categories; General Fund: Administrative, Public Works, Police, & Fire Restricted Funds: Water & Cemetery
Special Revenues: Gas Tax, Transportation (TDA), & COPS A recap of Fiscal Year ending June 30, 2021, along with projections for Fiscal Year ending June 30, 2022 were presented in summary formats for comparative purposes at prior meetings.

General Fund: It is still unclear how the rising inflation rate will affect Trinidad’s top two revenue sources, sales and occupancy taxes. The City’s conservative approach to spending, coupled with steady revenues from the baseline economy and significant contributions from visitors has helped build the City’s reserves over time.

However, the loss of cell tower income beginning in July 2022 will have a notable impact on the City’s revenue profile.

Sales and Occupancy taxes are volatile revenue sources. They are strong when the economy is healthy, but easily disrupted by natural disasters such as wildfires, droughts, pandemics, or human-triggered disasters such as housing or market crashes. It is common for cities that are primarily funded by fragile revenue streams to maintain healthy reserves. Since 2005 Trinidad City leaders have prioritized fiscal stability and responsibility, and the reserves established exemplify that commitment.

The reserves provide short-term insurance to shield the City from sudden changes, to use as matching funds to leverage larger grant funding, and to stabilize the budget in an emergency. Several of the following situations are examples of changes that the City has been anticipating; • Verizon exit of the Cell Facility lease on Trinidad Head. • Reduction of occupancy taxes due to a reduction or pause in STR licenses issued. 06-28-2022 City Council Meeting Minutes Page 2
• Measure Z Funding is unavailable for additional law enforcement coverage • Harbor Area converts to Federal Trust status and loses sales and occupancy taxes it generates. • Cover increasing costs due to State of Federal mandates and regulations • Emergency repairs to fragile infrastructure (coastal bluffs, roads, etc.) • Staffing increases to improve the quality of services provided to the community and balance the impacts that visitors have on the City.

Balanced Budget: The budget presented conservatively projects that the transitional period ahead may require dipping into the reserves while costs to provide general and special revenues are evaluated during this pivotal year. Staff has maintained a budget strategy of keeping revenue expectations modest, and expenditures generous. This practice helps the City to course-correct ahead of changes rather than behind them. The budget summary predicts a slight deficit this year, but there are several revenue sources that have been under-anticipated. If revenue sources exceed expectations, the budget will balance by year-end 2023.

Water Fund: The cost to operate the water treatment plant has risen dramatically in the past 5 years. A simple way to understand why is to separate expenses in two categories, hard and soft costs, and evaluate the trends in each category. Hard costs have been consistent, but soft costs have increased significantly.

Hard costs include general operating expenses such as energy costs to run the plant, in-house licensed personnel, treatment technology, filters, hardware, vehicle and machinery, treatment processes, etc.

Soft costs include technical and engineering staff time required to evaluate demand from a growing community, future planning, drought consulting in response to the changing environment, resiliency effort, and loss of experienced operators.

At year-end June 30, 2021 the water system spent overspent approximately $25,000 more than it earned in water sales revenue. The deficit was anticipated and authorized by the Council due to the Van Wycke temporary water line repair project. Consultant expenses (soft costs) were budgeted that year for creek flow monitoring and drought planning, but overall the fund balance remained in-check due to the steady and reliable hand provided by the Chief Plant Operator, Ryan DeSmet.

At year-end June 30, 2022, the water system is expected to overspend approximately $200,000. Operating costs remained steady until DeSmet resigned in September 2021. Hard costs stayed on target, but soft costs increased significantly. Despite a robust recruitment effort to find DeSmet’s replacement, the City had to hire an outside firm to operate the Plant on an interim basis. It has taken several outside consulting firms (Coleman Engineering and Pacific Watershed Associates) and other resources collectively to replace one in-house Chief Plant Operator. Additional demand has been placed on GHD, the City Manager, City Clerk, and several other technical consultants to assist in piecing together that position.

At year-end June 30, 2023, the water system is projected to overspend approximately $160,000 as the soft costs during this transition will spill over into the upcoming year. The water fund reserve is structured to withstand the impact – that’s what it’s designed to do. Although the hope is to reduce the need for an outside consultant to operate the Plant and stabilize expenses, the transition to a completely new water treatment staff will take time.

The cost of operating a small water system, maintaining its efficiency, in a very desirable area to live, functioning to provide a precious resource to a community that has emphasized a desire to live “within its means” (or local watershed), will prove to be a challenge for the rate payers. The water system will rely on reserve funds to operate until the rates are adjusted to reflect this new reality, and this budget will authorize staff to put the wheels in motion to begin evaluating a new rate structure. 2023 Budget Goals & Priorities Summary:

1. Utilize reserves established from prior fiscal years, if needed, to support staff transitions.

2. Evaluate and update charges for services to reflect the times (General & Special Funds).

3. Maintain current law enforcement coverage and improve vital government services.

4. Educate and enforce new laws passed to discourage overnight parking, camping, etc.

5. Reclaim Water Plant Operations from licensed, interim consultants.

6. Monitor, educate, and pivot with the challenges faced by the historic drought season ahead. 06-28-2022 City Council Meeting Minutes Page 3

7. Provide support to the Water Advisory Committee overseeing new grant opportunities received from the Department of Water Resources to improve water system resiliency.

8. Update the Water Rate Structure to reflect the true costs of operating a small water system in high demand.

9. Maintain and invest in public buildings, parks, and property.

10. Support community groups that enrich the community for locals and visitors, as they emerge from pandemic hibernation.

11. Continue promoting an inclusive dialog with Tribal Governments, and finalize the Government to Government policy to facilitate consultation on important topics of mutual concern.

12. Continue grant programs that will help the City satisfy several elements of the General Plan update.

Council comments/questions included:

Kelly: We need the water rate analysis done asap. I was a supporter of connecting to Humboldt Bay Municipal Water, but we have to ensure that while we are utilizing our own water system, it needs to cover its costs. I also want to see the General Plan complete, and more money spent on public safety.

Ladwig: There is a lot included in this budget and I appreciate the work that went into developing it.

Public comment included:

Patti Fleschner – Trinidad
Legal costs are expensive and only the law firms win. I hope the Council will end the lawsuits.

Paula Levine – Trinidad Area resident
I agree with Patti. Hire a mediator and resolve the lawsuits. Regarding the water system, the Council has emphasized a desire to live within its means. The water rates were last adjusted in 2012. Everyone should be paying the same rate inside or outside the City. The cost to transition to Humboldt Bay would have been much less than all the spending going on with grants.

Motion (West/Tuttle) to approve Resolution 2022-11; Adopting the FY2023 Budget. Passed unanimously.

FUTURE AGENDA ITEMS
- General Plan Element and suggests to move the process to a conclusion.

ADJOURNMENT: 7:30pm.

Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Steve Ladwig
Trinidad City Clerk Mayor
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Subject: FW: Closed Session Report
From: [email protected]
Date: Fri, Aug 19, 2022 2:56 pm
To: "'Gabriel Adams'" <[email protected]>
Attach: image001.png
Copyright © 2003-2022. All rights reserved.

From: Russ Gans <[email protected]>
Sent: Tuesday, July 19, 2022 6:38 PM
To: '[email protected]' <[email protected]>; Trinidad City Manager <[email protected]> Subject: Closed Session Report
The Council reports the following action taken in Closed Session:

A motion was made by Council Member Kelly, seconded by Council Member West, to accept the settlement payment tendered by Mr. Morgan and, upon clearance of the settlement payment and issuance of a letter of notification to Mr. Morgan, dismiss the pending action without prejudice.

Council Members West, Tuttle and Kelly voted in favor of the motion, Mayor Ladwig voted against it. The Motion passed 3 to 1.

THE MITCHELL LAW FIRM, LLP
_________________________
Russell S. Gans
The Mitchell Law Firm, LLP
426 First Street
P.O. Box 1008
Eureka, CA 95501
Tel: (707) 443-5643
Fax: (707) 444-9586
Email: [email protected]
Website: www.mitchelllawfirm.com
_________________________________________________________________________________________________________________________________________________________________________ CONFIDENTIALITY STATEMENT: This communication and any accompanying or attached document(s) are confidential and privileged. They are intended for the sole use of the addressee(s). If you receive this communication in error, you are advised that any use, disclosure, copying, distribution or taking any action in reliance upon this communication is strictly prohibited. Moreover, any inadvertent disclosure shall not compromise or waive the attorney-client privilege as to this communication or otherwise. If you received this message in error, please immediately telephone The Mitchell Law Firm, LLP ((707) 443- 5643), and delete this message without copying it. Thank you.

CONSENT AGENDA ITEM 1

SUPPORTING DOCUMENTATION ATTACHED

1. Financial Statements – June 2022

CONSENT AGENDA ITEM 2

SUPPORTING DOCUMENTATION ATTACHED

2. Law Enforcement Report – July 2022

CONSENT AGENDA ITEM 3

SUPPORTING DOCUMENTATION ATTACHED

3. Voting Delegate Bylaw Amendment Recommendations for the League of CA General Assembly Meeting.

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Subject: FW: Notice of Proposed Bylaws Amendments to be Considered at General Assembly From: "[email protected]" <[email protected]> Date: Wed, Aug 17, 2022 3:28 pm
To: "[email protected]" <[email protected]> Attach: image001.png

8.8.22 General Assembly Bylaws Packet_Final.pdf
ATT00001.txt

1. Formalize oversight of the Resolutions Committee by establishing the Second Vice President as the chair of the committee, while retaining the President’s authority to appoint the vice chair of the committee.

2. Ensure a more inclusive Nominating Committee by adding a committee member appointed by the Cal Cities President from among the Caucus Board Directors and one additional committee member appointed by the Cal Cities President from among the At-Large Directors for a total of 13 committee members.

3. Clarify that, unless the Board establishes otherwise, the Cal Cities President appoints the chair From: City_managers <[email protected]> on behalf of Norman Coppinger <[email protected]>
Date: Tuesday, August 9, 2022 at 2:18 PM
To: [email protected] <[email protected]> Subject: [City_managers] Notice of Proposed Bylaws Amendments to be Considered at General Assembly
August 9, 2022
TO: Mayors and Council Members, City Managers, and City Clerks

RE: Cal Cities 2022 Annual Conference
Notice of Proposed Bylaws Amendments to be Considered at General Assembly During its July meeting, the League of California Cities Board of Directors approved proposed amendments to enhance Cal Cities’ governance and effectuate technical changes. The proposed bylaws amendments will go before the General Assembly for a vote during the 2022 Cal Cities Annual Conference and Expo in Long Beach. At least two-thirds of the General Assembly must vote in favor of the proposed bylaws amendments in order for them to take effect.

Proposed Bylaws Amendments: The attached General Assembly packet includes background information on the proposed amendments, a resolution for adopting the amendments, and a redlined version of the proposed changes to the bylaws. The packet is also available on the Cal Cities website, www.calcities.org/proposedbylawsamendments for your convenience.

Specifically, the proposed bylaws amendments would accomplish the following:

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4. Make various minor technical corrections.

Voting Delegates: In order to vote during the General Assembly, your city council must designate a voting delegate. If your city has already made its appointment for the 2022 Annual Conference and provided your city’s voting delegate information to Cal Cities, your delegate may pick up his/her credentials upon arriving at the conference. If your city has not made its appointment, please complete the Voting Delegate form located on the Cal Cities website www.calcities.org/resolutions under the “voting delegates” section, and email it to Darla Yacub at [email protected] by Friday, September 2.

Cities are encouraged to consider the proposed bylaws amendments prior to their delegate’s vote at the Closing Luncheon and General Assembly, which will be held on Friday, Sept. 9, at 11:30 a.m. If you have any questions regarding these materials, please contact me at [email protected] or by phone at 916.658.8277.

Warm Regards,
Norman Coppinger
Deputy Executive Director, Finance & Operations
League of California Cities
Office: 916-658-8277
Cell: 916-600-8948
[email protected] | www.calcities.org
Strengthening California Cities
through Advocacy and Education
Twitter │ Facebook │ YouTube │ LinkedIn
2022 Annual Conference and Expo

PROPOSED BYLAWS AMENDMENTS
General Assembly
September 9, 2022
2021-2022

CAL CITIES OFFICERS
President
Cindy Silva
Mayor Pro Tem,
Walnut Creek
First Vice President
Ali Taj
Council Member,
Artesia
Second Vice President
Daniel Parra
Council Member,
Fowler
Immediate Past President
Cheryl Viegas Walker
Council Member,
El Centro
Executive Director
and CEO
Carolyn M. Coleman
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org August 2022
To: Cal Cities General Assembly
From: Cindy Silva, President
Carolyn Coleman, Executive Director and CEO
Re: Proposed Cal Cities Bylaws Amendments
On July 15, 2022, the League of California Cities (Cal Cities) Board of Directors (Board) voted to present proposed bylaws amendments to the General Assembly at the 2022 Cal Cities Annual Conference and Expo. This memorandum outlines the history of the proposed amendments, summarizes the amendments, and provides an explanation of the process for adopting amendments to the bylaws.

Background
Beginning in 2017, the Board directed Cal Cities to undertake a strategic planning process that resulted in the adoption of the “Powering Up for California Cities Strategic Grown Plan 2018-2021” (Strategic Growth Plan). The Strategic Growth Plan set forth goals to enhance Cal Cities’ governance to: (a) achieve even higher levels of engagement and effectiveness; (b) ensure optimal engagement by members and effectiveness in supporting fulfillment of the Cal Cities’ mission; and (c) ensure the pathway to leadership is transparent and inclusive.

In furtherance of its governance goals, the Board engaged an association governance consultant (Consultant) to evaluate the Cal Cities governance system and make recommendations for enhancing Cal Cities’ governance. The Consultant gathered and considered input from more than 350 Cal Cities members through advisory groups, roundtable discussions, interviews, and surveys. On July 8, 2021, the Consultant produced a report (Governance Report) detailing 49 recommendations to the Board to deepen the engagement of Cal Cities Member Cities and ensure Cal Cities’ governance is operating at peak performance.

The Governance Report included findings indicating that Cal Cities is a strong organization, with a high level of member engagement, but also highlighted opportunities for Cal Cities to enhance its governance. The opportunities for enhancement included: (a) improving the clarity, ease, and consistency in how the governance system works; (b) clarifying the guidelines for position qualifications and performance expectations; (c) identifying ways to deepen member engagement and enhance the quality of the experience of involvement; and (d) ensuring Cal Cities has an intentional, consistent organizational culture at all levels of the governance system.
1 The findings and recommendations from the Governance Report were presented to the Board during the July 2021 Board meeting. Following a robust exchange of ideas and input, the Board decided to move forward with many of the recommendations, referred other recommendations to a “to be established” board subcommittee for further study, and deferred consideration of the remaining recommendations.

Following Board approval, in September 2021 during the Cal Cities Annual Conference and Expo, the General Assembly voted to approve the following bylaws amendments:

1. Adjust the composition of the Board to achieve a higher impact and be more representative by adding Director seats to the Board for each of the five Diversity Caucuses, and transitioning members of the National League of Cities Board from Cal Cities Directors to one non-voting advisor to the Cal Cities Board.

2. Recognize the Cal Cities Diversity Caucuses in the Cal Cities bylaws to reflect the full contribution the caucuses make to Cal Cities’ mission and vision.

Those amendments became effective on Nov. 24, 2021.

Among the recommendations the Board decided was a priority to move forward was the establishment of a standing Governance Committee to assist the Board in fulfilling its governance function.

At its February 2022 meeting, the Board voted to approve Board policy establishing the Governance Committee with the task of regularly reviewing the governance structures, policies, and practices of Cal Cities and reporting its findings and recommendations to the Board. The Board also approved a one-year work plan for the Governance Committee that established priority governance issues to focus on in its first year.

Following the Board meeting, President Cindy Silva appointed the following Board members to serve on the Governance Committee:
• Cheryl Viegas Walker, Immediate Past President and Council Member, El Centro, Chair • Walt Allen, Council Member, Covina
• Jan Arbuckle, Vice Mayor, Grass Valley
• LaTanya Bellow, Deputy City Manager, Berkeley
• Pippin Dew, Council Member, Vallejo
• Lynne Kennedy, Mayor Pro Tem, Rancho Cucamonga
• Karen Goh, Mayor, Bakersfield
• Jim Lewis, City Manager, Pismo Beach
• Lisa Middleton, Mayor, Palm Springs
• John Minto, Mayor, Santee
• David Pollock, Council Member, Moorpark
2 The Governance Committee met in April 2022, and following engaging and productive discussions, brought forward to the Board at its May 2022 meeting several recommendations to further enhance Cal Cities’ governance. Among the recommendations approved by the Board during that meeting are two that require bylaws amendments:

2. To ensure a more inclusive Nominating Committee, add one committee member appointed from among the Caucus Directors and one additional committee member appointed from among the At-Large Directors for a total of 13 committee members.1 In addition to those recommendations identified by the Governance Committee and approved by the Board, Cal Cities staff identified various non-substantive revisions to the Cal Cities bylaws:

1. Clarify that, unless the Board establishes otherwise, the Cal Cities President appoints the chair of Board-established committees.

2. To avoid confusion and clarify organizational responsibilities, remove “Treasurer” from the title of the Second Vice President.
2 3. To promote consistency, replace the term “Board member(s)” with “Director(s).”3 On July 15, 2022, the Board voted to present these proposed bylaws amendments to the General Assembly at the 2022 Cal Cities Annual Conference and Expo.

While the work to enhance Cal Cities’ governance is a process being implemented in phases over several years, the Board believes these proposed amendments constitute important next steps toward ensuring Cal Cities’ governance is operating at peak performance. 1 Under the current bylaws, the Nominating Committee is comprised of 11 Directors. Two committee members are appointed from among At-Large Directors and one from a Department. Divisions participate on a rotation, with Directors residing within eight of the Divisions appointed in even-numbered years and Directors from the other eight appointed in odd-numbered years. 2 Under the current bylaws, the Second Vice President is referred to as “Second Vice President/Treasurer.” However, in practice the Second Vice President does not serve as treasurer of Cal Cities. Rather, that function is performed by the Chief Financial Officer designated in Article VIII, section 5, subdivision b(2), of the Cal Cities bylaws.
3 The current bylaws primarily refer to members of the Cal Cities Board of Directors as “Directors.” However, there are instances in which they are referred to as “Board members.” 3 Procedure for Amending the Cal Cities Bylaws
Amendments to the Cal Cities bylaws may be proposed by the Cal Cities Board and may be adopted: (a) by vote of the Cal Cities General Assembly, or (b) by mail ballot to Member Cities.4 In this case, the amendments will be considered by the General Assembly. Bylaws amendments need to be approved by 2/3 of those voting,5
and the number that constitutes 2/3 of those voting
(a) cannot be less than a majority of the voting delegates present if there is a quorum at the time the vote is taken;6 or (b) cannot be less than a majority of a quorum if the meeting started with a quorum but a quorum is not present when the vote is taken.7 If approved by the General Assembly, the amendments to the bylaws will go into effect after the expiration of a 60-day protest period.8 If, within 60 days after the adoption of the amendments, one-third or more of Member Cities submit a written protest against such amendments, the amendments are automatically suspended until the next Annual Conference and Expo, when they may be taken up again for reconsideration and vote.9 If the amendments are approved by the General Assembly and no protest is lodged, the effective date of the bylaws amendments will be Nov. 9, 2022.
4 Article XVII, Section 1.
5 Article XVII, Section 2.
6 Cal. Corp. Code 7512, subd. (a).
7 Cal. Corp. Code 7512, subd. (d). 8 Article XVII, section 6. 9 Article XVII, section 7.
4 RESOLUTION RELATING TO AMENDMENTS TO THE CAL CITIES BYLAWS (2/3 vote at General Assembly required to approve)
Source: League of California Cities Board of Directors
WHEREAS, the League of California Cities (Cal Cities) is a nonprofit mutual benefit corporation under California law and, as such, is governed by corporate bylaws; and WHEREAS, the Cal Cities Board of Directors (Board) periodically reviews the Cal Cities bylaws for issues of clarity, practicality, compliance with current laws, and responsiveness to membership needs and interests; and
WHEREAS, beginning in 2017, the Board directed Cal Cities to undertake a strategic planning process that resulted in the adoption of the “Powering Up for California Cities Strategic Growth Plan 2018-2021” (Strategic Growth Plan); and
WHEREAS, the Strategic Growth Plan set forth goals to enhance Cal Cities’ governance to: (a) achieve even higher levels of engagement and effectiveness; (b) ensure optimal engagement by members and effectiveness in supporting fulfillment of the Cal Cities’ mission; and (c) ensure the pathway to leadership is transparent and inclusive; and WHEREAS, in furtherance of its governance goals, the Board engaged an expert in association governance who gathered and considered input from more than 350 Cal Cities members through advisory groups, roundtable discussions, interviews, and surveys to evaluate the Cal Cities governance system and make recommendations for enhancing Cal Cities’ governance; and
WHEREAS, in July 2021 the Board decided to move forward with certain recommendations made as a result of that governance evaluation, including a recommendation to establish a standing Governance Committee of the Board to assist the Board in fulfilling its governance function; and
WHEREAS, in February 2022 the Board approved Board policy establishing the Governance Committee and charging it with regularly reviewing the governance structures, policies, and practices of Cal Cities, and reporting its findings and making recommendations to the Board; and
WHEREAS, in 2022 the Governance Committee recommended, and the Board, approved certain changes to the bylaws that: (1) formalize the oversight of the Resolutions Committee; (2) ensure a more inclusive Nominating Committee by adding one committee member appointed from among Caucus Directors and one additional committee member appointed from among AtLarge Directors; (3) clarify that, unless the board establishes otherwise, the Cal Cities President appoints the chair of board-established committees; and (4) make various non-substantive revisions; and
5 WHEREAS, the Cal Cities Board offers the following proposed amendments and additions to the bylaws, as set forth in the attached redlined version of the bylaws specified below, which is hereby incorporated by reference:

1. Amend Article VI, section 3(c) to designate the Second Vice-President as the Resolutions Committee chair, while retaining the President’s authority to appoint the vice chair of the Resolutions Committee;

2. Amend Article VII, section 5(b) to adjust the composition of the Nominating Committee by adding one At-Large Director and one Caucus Director for a total of 13 Nominating Committee members;

3. Amend Article VII, Section 10(d) to provide that, unless the Board establishes otherwise, the Cal Cities President appoints the chair of board-established committees;

4. Replace the title “Second Vice-President/Treasurer” with “Second Vice President” in Article VII, sections 2(a), 5(e), and 10(b); and Article VIII, sections 1, 2(c), and 4;

5. Replace the term “board member(s)” with “Director(s)” in Article VII, sections 5(b), 5(e), and 8; Article XII, section 5(c); and Article XV, section 4; and now therefore, be it
RESOLVED, by the General Assembly of the League of California Cities assembled during the Annual Conference in Long Beach on September 9, 2022, that the proposed bylaws amendments are hereby approved and Cal Cities shall make the specified amendments to the Cal Cities bylaws set forth in the attached redlined version of the bylaws.

See ATTACHMENT 1 for redline of proposed changes to the bylaws. 6 ATTACHMENT 1
Redline of Proposed Changes to Bylaws
7 Bylaws for the
League of California Cities
…
Article VI. Resolutions
…
Section 3: Resolutions Committee for Annual Conference Resolutions. (a) Resolutions Committee Composition. The Cal Cities President establishes a Resolutions Committee sixty days prior to each Annual Conference, which committee shall consist of:
(i) One elected official from each regional division, appointed by the regional division;
(ii) One elected official from each policy committee, appointed by the policy committee;
(iii) One member from each functional department, appointed by the department;
(iv) One elected official from each caucus, appointed by the caucus; and (v) Up to ten additional members (at least five of whom are elected officials) as the Cal Cities President deems necessary to achieve geographic and population balance, as well as recognize the multiplicity of city functions not represented by the other appointments, including, but not limited to, the perspectives of board and commission members as well as professional staff.
(b) Presidential Appointments. In the event a regional division, policy committee, functional department, or caucus does not make its appointment to the Resolutions Committee, the Cal Cities President may make the appointment on the regional division’s, policy committee’s, functional department’s, or caucus’s behalf.
(c) Chair. The Cal Cities President shall also appoint to the Resolutions Committee a committee chair and vice chairSecond Vice-President shall serve as committee chair. The Cal Cities President shall also appoint to the Resolutions Committee a vice chair.
(d) Minimum Committee Size and Composition. In the event the full committee is not in attendance at the Annual Conference, the Cal Cities President shall appoint a sufficient number of city officials in attendance to achieve a total of thirty. No less than two-thirds of the members of the Resolutions Committee shall be elected officials.
8 (e) Committee Consideration of Proposed Resolutions. Except for resolutions of courtesy, commendation, appreciation or condolence, no resolution expressing the opinion or policy of Cal Cities on any question may be considered or discussed by Cal Cities’ General Assembly, unless it has been first submitted to, and reported on, by the Resolutions Committee. …
Article VII: Board of Directors
…
Section 2: Composition.

The Cal Cities Board is composed of the following:
(a) A President, First Vice-President and Second Vice-President/Treasurer, who each serve a term of one year;
(b) The Immediate Past President who serves for a term of one year, immediately succeeding his or her term as President;
(c) Twelve Directors-at-Large,
(i) Who serve staggered two-year terms, and
(ii) At least one of whom is a representative of a small city with a population of 10,000 or less;
(d) One Director to be elected from each of the regional divisions, functional departments, and caucuses of Cal Cities, each of whom serves for a term of two years; and
(e) Ten Directors that may be designated by the mayors of each of the ten largest cities in California to serve two-year terms.
(f) For purposes of this section, the population of each city is the most current population as determined by the California Department of Finance, Demographic Research Unit, or its successor agency or unit. If no successor agency or unit is named, the most current population used to determine these dues shall be used to determine future dues until such time as these bylaws are amended to designate a new source for determining city population. (g) Directors hold office until their successors are elected and qualified. …
9 Section 5: Nomination Process.
(a) Timing. The Cal Cities President, with the concurrence of the Cal Cities Board, shall establish a nominating committee at the first Board meeting of the calendar year in which the election is to occur.
(b) Composition. The nominating committee shall be comprised of eleven thirteen Board membersDirectors. ThreeTwo nominating committee members shall be At-Large Directors, and one shall represent a functional department, and one shall represent a caucus. Regional divisions shall be represented on the nominating committee on the following rotating basis:
(i) Even-Numbered Years: In even-numbered years, the Central Valley, Imperial County, Monterey Bay, North Bay, Orange County, Redwood Empire, Sacramento Valley and San Diego County
Regional Divisions shall be represented on the nominating committee. (ii) Odd-Numbered Years: In odd-numbered years, the Channel Counties, Inland Empire, Desert-Mountain, East Bay, Los Angeles County, Peninsula, Riverside County, and South San Joaquin Regional Divisions shall be represented on the nominating committee. (c) Nominating Committee Chair. The Cal Cities President shall appoint the chair of the nominating committee.
(d) Candidates for Positions Ineligible. Candidates for officer and at-large positions on the Cal Cities Board are not eligible to serve on the nominating committee. In the event a regional division representative on the nominating committee wishes to be a candidate for an officer or at-large position, the Cal Cities President will appoint a substitute nominating committee member from the same regional division, if available. If one is not available, the President shall appoint a substitute from a nearby regional division. (e) Duties. The duties of the nominating committee are to:
(i) Member Outreach. Publicize the qualifications for the offices of Second Vice Vice-President/Treasurer and the at-large members of the Cal Cities Board to Cal Cities’ Member Cities;
(ii) At-Large and Second Vice-President Recommendations. Make recommendations to the Cal Cities Board on the following year’s Cal Cities officers and at-large board membersDirectors; and (iii) President and First Vice President Recommendation.

Recommend whether the previous year’s First Vice President 10 becomes President and the previous year’s Second VicePresident/Treasurer becomes First Vice President. (f) Notice to Members. An explanation of the nomination process and relevant deadlines for submitting nominations to the nominating committee shall be publicized in Cal Cities publications and communications throughout the year, along with the identity of nominating committee members once such members are appointed. In addition, the nominating committee shall inform the membership of the opening of the nominations for the following year when it makes its report to the general membership as provided in Article VI, Section 5(g) below.
(g) Decision and Report. The nominating committee’s recommendations shall be communicated to the Cal Cities Board not later than 30 days prior to the date of Cal Cities’ Annual Conference and again at the Annual Conference.

In addition, the nominating committee shall make its report to the membership at the opening general session of the Annual Conference. (h) Election. The election of Cal Cities Board officers and Directors-at-Large shall occur at a Cal Cities Board meeting at the Annual Conference as provided in Article VII, Section 4(c) and Article VII, section 3. …
Section 8: Meetings and Meeting Notice.
(a) Regularly Scheduled Board Meetings. The Cal Cities Board shall meet no fewer than four times a year. Notice of regularly scheduled Board meetings shall be mailed to each Director at least 14 days before any such meeting. (b) Emergency Board Meetings. A good faith effort shall be made to provide notice of any emergency board meetings (for example, by first-class mail, personal or telephone notification, including a voice messaging system or other system or technology designed to record and communicate messages, telegraph, facsimile, electronic mail, or other electronic means). (c) Telephonic or Electronic Participation. Members of the Cal Cities Board may participate in any meeting through the use of conference telephone or similar communications equipment, so long as all members participating in such meeting can hear one another. Participation in a meeting by this means constitutes presence in person at such meeting.
(d) Notice Content. All meeting notices shall include the meeting date, place, time, and, as applicable, the means by which a Cal Cities Board memberDirector may participate electronically.
…
11 Section 10: Committees.
(a) General. The Cal Cities Board may establish committees to study city problems, advise on Cal Cities educational efforts, make recommendations with respect to Cal Cities advocacy efforts, or to engage in other appropriate Cal Cities service.
(b) Executive Committee.
(i) Composition. The Executive Committee of the Cal Cities Board consists of the following: the Cal Cities President, First VicePresident, Second Vice-President/Treasurer, Immediate Past President and Executive Director.
(ii) Authority. The Executive Committee has authority to act for the Cal Cities Board between Board meetings, provided that no action of the Executive Committee is binding on the Cal Cities Board unless authorized or approved by the Board.
(c) Standing Policy Committees.
(i) Charge. Cal Cities shall have a series of standing policy committees, whose charge shall be to make recommendations to the Cal Cities Board on matters within the committees’ jurisdiction, as well as fulfill other duties specified in these bylaws (see, for example, Article VI, section 4(b)).
(ii) Membership. Each Cal Cities Policy Committee shall be comprised of the following:
• Two members appointed by each regional division president; • One member appointed by each functional department president; • One member appointed by each caucus president;
• No more than 16 members appointed by the Cal Cities President, to provide population and geographic balance, as well as expertise; and
• Such representatives of affiliate organizations in the capacity authorized by the Cal Cities Board.
(iii) Feedback. Policy committees shall receive information on actions taken on committee recommendations and the reasons for those actions.
12 (d) Committee Chairs and Vice Chairs. Unless the Cal Cities Board establishes otherwise, Tthe Cal Cities President appoints the chair of all CalCities-wide committees. The term of such appointments coincides with the Cal Cities President’s term. The Cal Cities President may appoint vice chairs for such committees, as the Cal Cities President deems necessary. …
Article VIII: Officers
Section 1: Identity.

The officers of Cal Cities are a President, a First Vice-President, a Second VicePresident/Treasurer, an Immediate Past President, and an Executive Director.

Section 2: Duties of Cal Cities Officers.
(a) President. The President presides at all Cal Cities Board meetings and all General Assemblies. The President has such other powers and duties as may be prescribed by these bylaws or the Cal Cities Board. (b) First Vice-President. The First Vice-President carries on the duties of the President in the President’s temporary absence or incapacity. The First VicePresident has such other powers and duties as may be prescribed by these bylaws or the Cal Cities Board.
(c) Second Vice-President/Treasurer. The Second Vice-President/Treasurer carries on the duties of the President in the President’s and First VicePresident’s temporary absence or incapacity. The Second VicePresident/Treasurer has such other powers and duties as may be prescribed by these bylaws or the Cal Cities Board.
…
Section 4: Vacancies.

A vacancy in the office of President is filled by the Immediate Past President who shall serve for the unexpired term of office and, upon election of a new President at the next Annual Conference, shall subsequently serve a full term as Immediate Past President.

In the event the Immediate Past President is not available to fill the vacancy in the office of the President, or declines in writing, it shall be filled by the succession of the First Vice-President to that office. A vacancy in the office of First Vice-President, or Second Vice-President/Treasurer, is filled for the un-expired term by appointment by the Cal Cities Board of a member of the Cal Cities Board. A vacancy in the office of the Immediate Past President is filled for the un-expired term by the last Past President continuing to hold a city office.
…
13 Article XII: Voting
…
Section 5: Mail Balloting.

In addition to voting at Cal Cities meetings, Cal Cities may solicit member input by mail ballot.
(a) Mailing.10 The question(s) to be voted upon, along with explanatory materials and a ballot, shall be mailed by first class mail to each Member City for consideration and action.
(b) Time Frame for Action. Member Cities shall have at least 45 days to cast their vote. Ballots shall be cast by returning the Member City’s ballot to Cal Cities’ principal office in Sacramento.
(c) Ballot Tabulation and Results Announcement. The Cal Cities President will appoint a counting committee of three board membersDirectors to count the votes cast by mail ballot. The counting committee will submit its count to the Cal Cities Board, which shall canvass the vote and announce the results. (d) Functional Departments, Regional Divisions, and Caucuses.

Departments, divisions, and caucuses may also use mail balloting under procedures specified in their respective bylaws.
…
Article XV: Prohibited Transactions
…
Section 4: Ethical Considerations.

These restrictions, of course, represent the floor, not the ceiling, for ethical conduct as a Cal Cities board memberDirector or policy committee member. If a board memberDirector or policy committee member believes that there are circumstances under which Cal Cities’ members might reasonably question the board member’sDirector’s or policy committee member’s ability to act solely in the best interests of Cal Cities and its member cities, the prudent course is to abstain. As an example, typically Cal Cities board membersDirectors have abstained from participating in decisions on legislation that would affect organizations for which they work. Another example is legislation that would uniquely benefit a board member’sDirector’s city.

Policy committee members should also consider abstaining in similar circumstances. 10 The Administrative Services Committee recommends Cal Cities also include notice of the upcoming ballot in a variety of Cal Cities communications to alert Member Cities to make inquiry in the event a city’s ballot is lost in the mail. 14 CONSENT AGENDA ITEM 4

SUPPORTING DOCUMENTATION ATTACHED

4. Master Services Agreement Task Orders 3 & 4, Bypass Flow Telemeter Integration, and LSAA Compliance Reporting .

Workspace Webmail :: Print 8/19/22, 12:49 PM
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Subject: PWA Master Services Agreement task Orders #3 and #4 From: Todd Kraemer <[email protected]>
Date: Thu, Aug 11, 2022 12:45 pm
To: Trinidad City Manager <[email protected]>, Trinidad City Clerk <[email protected]> Cc: Missy Kobetsky <[email protected]>, "[email protected]" <[email protected]>
Attach: Task Order 3 Telemeter IoT plaform Integration_final.pdf Task Order 4 LSAA_final.pdf

1. This first document serves as Task Order #3 under the Master Services Agreement for AsNeeded Geologic and Hydrologic Services (2021-MSA-01) between the City and PWA. Task Order #3 includes the following tasks related to the telemeter project and digital display of hydrographs at the City’s drinking water treatment facility located along Luffenholtz Creek in Trinidad, California. Ultimately, the City will be able to a) access bypass flow data remotely over the cloud, b) observe a graph or chart for ease of data interpretation, and c) be alerted if bypass flow falls below either the 0.86 cfs or 0.15 cfs regulatory thresholds.

2. The second Task Order #4 is also under the Master Services Agreement. Task Order #4 includes the following tasks related to the ongoing projects at the City’s drinking water treatment facility located along Luffenholtz Creek in Trinidad, California. Since the construction of the Luffenholtz Creek drinking water treatment facility, the City has not possessed a valid LSAA, and as such, has been out of compliance with Condition 15 of A024759. As per Task Order #4, PWA will prepare and submit a lake and streambed alteration (LSAA) notification through CDFW’s Environmental Permit Information Management System (EPIMS) on behalf of the City. Estimated costs for this project may be less if CDFW does not continue to ask for Critical Low Flow data regarding this LSAA.

Hello Eli and Gabe,
PWA has prepared these attached contracts for our ongoing project work and expenses. Please review, approve, and sign so PWA can continue our hydrologic services under our Master Services Agreement.

Professional services by PWA shall commence when authorization is signed by Pacific Watershed Associates and the City of Trinidad. I cc’d Missy Kobetsky, PWA Staff Scientist, she will work with Gabe to register and complete the online LSAA application. Please call me if there are questions or wish to discuss any or all ongoing PWA projects. PWA will be working on Luffenholtz Creek tomorrow (11:30am) as it relates to our current low flow stream monitoring and the PWA MkII Telemeter project.

Sincerely,
Todd
TASK ORDER #3 – August 5, 2022
under
City of Trinidad/Pacific Watershed Associates 2021 MSA 01 Statement of Work: Integrate PWA MkII Bypass Flow Telemeter with IoT Data Analytics Platform
This document serves as Task Order #3 under the Master Services Agreement for As-Needed Geologic and Hydrologic Services (2021-MSA-01) between the City of Trinidad (City) and Pacific Watershed Associates (PWA). Task Order #3 includes the following tasks related to the ongoing projects at the City’s drinking water treatment facility located along Luffenholtz Creek in Trinidad, California.

Task 3.1. Integration of PWA MkII Bypass Flow Telemeter with IoT Data Analytics Platform Under condition 12 of appropriative water right A024759, the permittee (City) “…shall bypass a minimum flow of 0.25 cubic feet per second (cfs), except that when the natural flow as measured at the diversion site is less than 0.86 cfs, the minimum flow shall be 0.15 cfs.” Conditions 13 and 14 of A024759 state that the permittee must notify the California Department of Fish and Wildlife (CDFW) when the natural flow in Luffenholtz Creek at the diversion site falls below 0.86 cfs and that a device capable of monitoring bypass flow is installed.

The PWA MkII telemeter has been accurately recording stream stage (water levels), and documenting bypass flows, during annual low flows in Luffenholtz Creek just downstream of the Trinidad pump station diversion site since 2017. Currently, data is being streamed directly to a computer terminal and receiving gateway via a LoRa radio link at the drinking water treatment plant. It has become apparent that it would be more convenient if the telemeter data could be a) accessible remotely over the cloud, b) displayed as a graph or chart for ease of data interpretation by the client, and c) automated such that authorized City personnel are alerted if bypass flow falls below either the 0.86 cfs or 0.15 cfs regulatory thresholds.

As per Task Order #3, PWA will find a suitable data analytics and visualization platform to integrate with the MkII bypass flow telemeter, and subsequently alter the code of the telemeter’s LoRa gateway to do the following:
a. Send data to a cloud-based data analytics and visualization platform so the data can be remotely accessed.
b. Create a dashboard on which to view the data as a chart or graph for ease of interpretation by the client.
c. Configure an automated alert system to notify selected personnel when bypass streamflow falls below either the 0.86 cfs or 0.15 cfs regulatory thresholds.

It should be noted that for transmission to the cloud, the telemeter’s gateway will need to be plugged into an ethernet port and the LoRa computer gateway is and ethernet connection will need to be always left on (active). If no ethernet ports are available at the drinking water treatment plant, an ethernet splitter and cable will need to be installed. On occasion, the office computer is turned off and taken off the internet for security purposes, and this may require the installation of a second dedicated computer that is always left operating so telemeter flow data can be continuously transmitted to the cloud City of Trinidad August 5, 2022
MSA 01, Task Order #3: PWA MkII Telemeter and Data Analytics Platform Integration Page 2 of 2 platform. Out telemeter specialist will determine the necessary hardware and programming that is needed to provide for continuous connectivity to the cloud. The cost for any additionally required hardware to provide this continuous connection, if any, is not a part of this Task order or cost estimate.

Cost Estimate – Task A. Integration of PWA MkII Telemeter with Data Analytics Platform Task Order #3: Range of $10,000-$12,000.

The services described above shall be provided by PWA on a time and materials basis for a cost $11,700 without prior written authorization from the Client.

It should be noted that this cost estimate does not include the monthly cost of the Data Analytics Platform, which will range from $0.00 to ~$100.00, based on how much data the City wishes to send to the platform. It also does not include purchase of any additional computer- or electronic-related hardware, if any is needed. Maintenance of the telemeter, as well as associated data collection, analysis and regulatory reporting is covered under a separate agreement.

Professional services by PWA shall commence when authorization is signed by Pacific Watershed Associates and the City of Trinidad.

Pacific Watershed Associates
_________________________________ __________________
Bill Weaver, Principal and CEO Date
City of Trinidad
_________________________________ __________________
Eli Naffah, City Manager Date
TASK ORDER #4 – August 5, 2022
under
City of Trinidad/Pacific Watershed Associates 2021 MSA 01 Statement of Work: Complete LSAA for City of Trinidad water rights A023243 and A024759 for compliance with sections 1603 and 1600 of Cal. Fish and Game Code This document serves as Task Order #4 under the Master Services Agreement for As-Needed Geologic and Hydrologic Services (2021-MSA-01) between the City of Trinidad (City) and Pacific Watershed Associates (PWA). Task Order #4 includes the following tasks related to the ongoing projects at the City’s drinking water treatment facility located along Luffenholtz Creek in Trinidad, California.

Task 4.1. CDFW Section 1603/1600 Compliance - LSAA Application Condition 15 of appropriative water right A024759 states that, “In accordance with section 1603 and/or section 1600 of the Fish and Game Code, no water shall be diverted under this permit until the Department of Fish and Wildlife has determined that measures necessary to protect fish life have been incorporated into the plans and construction of such diversion.” For compliance with condition 15 of A024759 the City of Trinidad must apply for a Lake and Streambed Alteration Agreement (LSAA) through the California Department of Fish and Wildlife (CDFW). Since the construction of the Luffenholtz Creek drinking water treatment facility, the City has not possessed a valid LSAA, and as such, has been out of compliance with Condition 15 of A024759.

As per Task Order #4, PWA will prepare and submit a lake and streambed alteration (LSAA) notification through CDFW’s Environmental Permit Information Management System (EPIMS) on behalf of the City to achieve compliance with condition 15 of the City’s appropriative water rights. To complete the LSAA notification PWA will:
• Communicate with regulators and other relevant personnel as needed to complete the LSAA notification.
• Take comprehensive site photos to document the extents and impacts of the water diversion. • Review any existing documents as needed to complete the LSAA notification. • Complete and submit the LSAA notification through EPIMS.

It should be noted that the City will need to provide PWA with any relevant and necessary water diversion CEQA documentation pertaining to the Luffenholtz Creek drinking water treatment facility. If such CEQA documentation does not exist, it will be the responsibility of the City to either complete and file the appropriate CEQA documentation pertaining to the water diversion on Luffenholtz Creek or file a CEQA exemption under the premise that the water diversion is an existing facility or a minor alteration.

The City will also need to provide PWA with the appropriate EPIMS login information so PWA may submit the electronic LSAA notification. If the City does not have an EPIMS account, the City will need to create an EPIMS account before PWA can complete the LSAA notification.

It should also be noted that the City will likely have to pay a standard LSAA permitting fee of $5,748.75 with the submittal of the LSAA notification. Additionally, depending on the status of the City of Trinidad – LSAA Notification August 5, 2022
MSA 01, Task Order #4: CDFW Section 1603/6100 Compliance – LSAA Notification Page 2 of 2 current CEQA documentation pertaining to the water diversion on Luffenholtz Creek, the City may be required to pay a CEQA filing fee. It is the responsibility of the City to pay any fees associated with filing the LSAA notification and CEQA documentation. PWA’s cost estimate does not include or reflect the fees that are associated with the LSAA and CEQA filing.

Cost Estimate – Task 4.1. CDFW Section 1603/1600 Compliance - LSAA Notification Task Order #4: Range of $11,800-$13,800
The services described above shall be provided by PWA on a time and materials basis for a cost not to exceed $13,748 without prior written authorization from the Client.

Professional services by PWA shall commence when authorization is signed by Pacific Watershed Associates and the City of Trinidad.

Pacific Watershed Associates
_________________________________ __________________
William Weaver, Principal and CEO Date:

City of Trinidad
_________________________________ __________________
Eli Naffah, City Manager Date:

DISCUSSION AGENDA ITEM 1

SUPPORTING DOCUMENTATION ATTACHED

1. Discussion/Decision regarding Terms of Drinking Water System Emergency Intertie Agreement MOA Between the City of Trinidad and Westhaven Community Services District.

DISCUSSION AGENDA ITEM
Date: August 23, 2022 ________________________________________________________________________ Item: Trinidad-Westhaven Emergency Interim Intertie Agreement As directed by Council on December 14, 2021, staff has been working to develop an Emergency Intertie Agreement (Agreement) with Westhaven Community Services District (WCSD) for Council and WCSD Board approval. On July 14, Council authorized the Mayor to sign the Interim Agreement (July version). The WCSD Board did not approved this version in July. The City and WCSD met again on August 9 and discussed several additional items requested by WCSD. An amended Interim Agreement was drafted for review and approval by the WCSD Board and City Council. The WCSC Board unanimously approved this amended interim agreement on August 17. This amended Interim Agreement (August 12 version) is being presented to City Council for review and possible approval.

The Interim Intertie Agreement includes provisions for constructing and operating the Emergency Intertie through the useful life of the intertie facilities. Design, permitting, and construction of the Emergency Intertie is being funded by Multi-benefit Drought Relief Program (MBDRP) funding from the Department of Water Resources (DWR) Grant Agreement 4600014620, executed June 20, 2022.

The emergency intertie will consist of a water line connecting two water systems that allows one water system to provide water to another system during an emergency, provided water is available from the supplying agency. The Emergency Intertie facilities include pipes, valves, fire hydrants, a pump station and possibly a back-up generator. When the project agreements are in place, initial project tasks include design, environmental documentation and permitting, with construction of the emergency intertie scheduled for summer 2023. This project has been funded by DWR to address immediate and near-term impacts of the drought, and the grant has tight timelines so getting the project underway soon is important.

The amended agreement includes revisions regarding 1) inclusion of a clarification regarding conservation measures to be implemented during activation of the emergency Intertie and 2) construction cost sharing.

Conservation Measures: Intertie Agreement item 8.d describes emergency notifications during activation of the emergency intertie. The amendment provides the reference to the WCSD Ordinance Section 6 and City of Trinidad Water Shortage Contingency Plan stage 4 which would be implemented during activation of the emergency intertie.

Cost Sharing: The Intertie Agreement item 3 outlines what would happen if the cost of construction exceeded the grant budget. “In the event that costs exceed the budgeted funds for the construction contract provided through the MBDRP Grant, the parties will reduce scope of project while still accomplishing objectives and/or seek additional funding. If there is still a funding shortfall, the clause specifies how the additional costs” would be shared. The version approved by Council on July 12 specified a 50%-50% spilt of construction costs.

WCSD has proposed a cost sharing proportionally. The rational is because the Westhaven water system is smaller than the Trinidad water system, Westhaven proposed apportioning construction cost overruns based on respective annual water sales:
“…the additional funds required to complete construction (construction contract only) shall be apportioned between the City and District 50%-50% according to their respective most recent relative annual water sales. Thus, for example, if City annual water sales revenue were twice that of District, then the sharing of cost overruns would be 66.66% City: 33.33% District.” Using the proposed proportional cost sharing based on annual water sales, in a hypothetical situation sharing costs during the current year, last years’ annual water sales would be used to calculate the %: City of Trinidad would pay approximately 59%, and Westhaven would pay approximately 41%, based on last year’s annual water sales.

Hypothetical
situation for cost
sharing this
year. FY 21-22
Water Sales
Total
water sales
Proportional
share of cost
overruns
during FY 22-
23 City $318,925 / $537,384 = 59.35%
WCSD $218,459 / $537,384 = 40.65%
The amended Agreement is being presented as interim so the grant funded Emergency Intertie Construction Project can get started as soon as both WCSD and City have approved the interim agreement. This amended interim agreement is a first step, leading to the final version of the agreement. It is anticipated that the final agreement will be available for WCSD Board and Council review and approval in September or October.

Staff Recommendations:
• Discuss cost sharing method.
• Authorize the Mayor to sign the amended Interim Emergency Intertie Agreement between City of Trinidad and WCSD to construct, operate and maintain an emergency intertie. • Provide additional direction to staff regarding the final Emergency Intertie Agreement.

Attachments:

Interim Emergency Intertie Agreement with WCSD
Intertie Agreement Exhibit B Budget
1 INTERIM MEMORANDUM OF AGREEMENT
Between City of Trinidad
and
Westhaven Community Services District
For the Design, California Environmental Quality Act Compliance, Permitting, Construction and Operation of the Trinidad – Westhaven Emergency Intertie Project
This Interim Memorandum of Understanding For the Design, California Environmental Quality Act Compliance, Permitting, Construction and Operation of the Trinidad-Westhaven Emergency Intertie Project (this “MOA” or “Agreement”), is made and entered on this ____ day of ______ , 2022, by and between the City of Trinidad (hereinafter “City”) and the Westhaven Community Services District (hereinafter “District”). Collectively, the City and District shall be referred to as ‘Parties’.

RECITALS
A. WHEREAS, situations may arise due to pipeline failures or other emergencies where one of the potable water systems for the District or City may require a short-term supply of water from the other system; and
B. WHEREAS, City and District wish to work cooperatively for the benefit of the citizens of the City and District in case of emergencies; and C. WHEREAS, when the City and District have excess water production capacity, City is willing to sell water to District and District is willing to sell water to City during emergency situations under the terms and conditions described herein; and D. WHEREAS, both the City and the District recognize the need to construct and maintain an interconnection pipeline to effectuate the mutual provision and acceptance of excess water production capacity when necessary for the protection of public health and safety and/or to respond to emergency events.

E. WHEREAS, the Department of Water Resources has awarded to the City funding to construct the emergency intertie through a Multi Benefit Drought Relief 2 Program Grant (“MBDRP Grant”) funding in the amount of $1,856,600.00 to plan and construct the Project 1 Trinidad-Westhaven Emergency Intertie under Grant Agreement No. 4600014620 (the “Emergency Intertie Project”), which is attached hereto as Exhibit A and incorporated herein by reference (the “Grant Agreement”).

NOW THEREFORE, based on the foregoing recitals of fact the City and District mutually agree as follows:

AGREEMENT

1. For the term stated in Section 18 of this MOA, below, City may accept potable water from District and District may accept potable water from City through a pipeline, more particularly described below, connecting the distribution systems of the parties which are located on/near Westhaven Drive, Trinidad, California.

2. The costs for the Emergency Intertie Project include two categories (a) costs to plan and construct the intertie facility; (b) ongoing operation and maintenance costs.

3. The financial responsibilities of each party to this MOA for the Emergency Intertie Project shall be as provided in Exhibit B to this MOA, attached hereto and incorporated by reference herein, which exhibit details the cost apportionment and respective payment obligations of the City and District, respectively. Planning and construction costs for the Emergency Intertie Project include, without limitation, costs for easement acquisition, preparation of engineering and design documents, environmental documents, permitting costs, and costs of construction and closeout, all of which are more particularly described in the estimate recited in Exhibit B1, entitled “Construction Budget”, attached hereto and incorporated herein by reference. In the event that costs exceed the budgeted funds for the construction contract provided through the MBDRP Grant, the parties will reduce scope of project while still accomplishing objectives and/or seek additional funding. If there is still a funding shortfall, the additional funds required to complete construction (construction contract only) shall be apportioned between the City and District according to their respective most recent relative annual water sales.

Thus, for example, if City annual water sales revenue were twice that of District, then the sharing of cost overruns would be 66.66% City: 33.33% District Each party agrees to split 50%-50% the operation and maintenance costs of the emergency intertie system. Operations and Maintenance (O & M) financial responsibilities will include all expenses for ongoing operation and maintenance of the Emergency Intertie Project following completion of the construction phase, which are 3 more particularly described in the estimate recited in Exhibit B.2, entitled “Operations & Maintenance Budget and Apportionment”, which is attached hereto and incorporated by reference. Each party will maintain records of O & M activities and costs incurred and make payments as described in PAYMENTS 17 below.

4. City may accept potable water from District and District may accept potable water from City which is of sufficient quality to meet the standards for potable water for municipal water prescribed by the California Department of Health Services.

5. During an emergency situation (as defined below) and subject to the conditions described herein, City agrees to provide to District, and District agrees to provide to City available quantities of potable water as determined by the supplying water operator. The intertie system capacity is designed for one hundred (100) gallons per minute. Operators may increase the pumping rate in the short term if warranted.

6. The quantity of water delivered to either system shall be determined by the supplying operator and could include production and storage water but the supplier’s tanks shall always maintain at least half their storage capacity at all times.

7. The emergency intertie would be activated only under conditions of a water emergency: when a water system failure or an active fire emergency cause either the City or the District to have insufficient water available for human consumption, sanitation, or fire protection. At least the following events could trigger activation of the emergency intertie: (a) a large unanticipated system leak results in less than adequate volume to supply customer demand; (b) a short-term treatment plant or equipment failure disrupts ability to deliver potable water that meets drinking water standards; (c) a short-term failure or leakage of storage tanks reduces source capacity below system demand.

The emergency intertie is not intended to be used to routinely augment anticipated chronic late summer/early fall low flow production in either water system. Emergency conditions shall not include supplementing water volume during periods of high demand if the system is in a normal operational mode or during scheduled repairs or maintenance unless mutually agreed to in writing through an amendment to this agreement.

8. Emergency notification:
a. Each party will designate a Subcommittee with a minimum of three members with the power to authorize a declaration of emergency and to respond to operators in the event of activation of emergency intertie. 4 b. The operators, or their designee, are empowered to activate the emergency intertie with coordination of both operators and will then notify their respective Subcommittee within 24 hours to inform them of the activation and nature of the emergency. Within 48 hours operators will update their respective Subcommittee and prepare for a longer-term emergency if warranted.
c. If the emergency lasts more than 72 hours the Subcommittees will meet and, if judged appropriate, declare a Water Emergency for ongoing use of the emergency intertie.
d. Once a water emergency is declared, the operators and their subcommittees shall meet every 48 hours to review the emergency status until the subcommittees declare the water emergency is over.

Declaration of a water emergency should cause each Party to implement customer notification of emergency and water conservation measures. For the District, emergency conservation measures are specified in Section 6 of WCSD Ordinance 2014-02 (“Adopting a water conservation program and water supply emergency ordinance”); for the City, emergency conservations measures that must be adopted are specified in Stage 4, “Severe Water Storage Emergency” from the Trinidad Water Storage Contingency Plan adopted 10 August 2021. 9. Neither City nor District shall be required to accept potable water made available by the other party to this MOA.

10. Both City and District shall jointly review, comment on and approve, in their respective discretion, the draft design of the pump station and interconnection pipeline to be constructed pursuant to this MOA, and in accordance with the Grant Agreement. The specific roles and responsibilities of the City and the District with respect to the grant project, pump station and interconnection pipeline/valve maintenance are described in Exhibit C, which is attached hereto and incorporated by reference.

11. Each party agrees to address known leaks in a timely fashion, and maintain their respective systems in good working order so that emergency conditions are not prolonged unnecessarily.

RESPONSIBILITIES OF CITY

12. The City shall be responsible for administering the MBDRP Grant as Grantee, responsible for grant administration, agreement management, invoicing and reporting. The City shall serve as a cooperating agency and with the City’s engineers and planner shall review and concur with District project work products and design 5 specification as specified in the Exhibit C.2, City Project Responsibilities, which is attached hereto and incorporated by reference.

RESPONSIBILITIES OF DISTRICT

13. The District shall be the implementing agency (sub-grantee) for planning and construction of the pipeline, pump station, valves, and metering devices and be responsible for completion of the scope of work for construction of the pipeline and pump station project in accord with the terms and conditions of the Grant Agreement. As the Implementing Agency the District will be responsible for the delivery of the Project and the day-to-day activities of the Project. District responsibilities include project management, contract management, invoicing, reporting, design, engineering, environmental, permitting, construction administration and closeout.

14. The District shall work collaboratively with City and City’s consultants, DWR Grant Manager and Division of Drinking Water staff in decision-making and securing approvals; and shall provide work products to City for review and concurrence prior to finalizing design specifications as specified in Exhibit C.1, WCSD Project Responsibilities, which is attached hereto and incorporated by reference.

11. The District shall construct, test, and place the interconnection pipeline and pump station into operation and shall afford City an opportunity to witness and comment upon the testing.

PAYMENT

15. Cost of water delivered shall be the same for both Parties and shall be determined as the lower of either Party's current commodity rate for water at the time water is delivered.

16. If an emergency is fire related there would be no cost for the water supplied.

17. Payment for potable water purchase under this MOA shall be made within 30 days as billed by the providing party following an emergency water delivery. Each party shall bill the other only for the volume of water delivered. There will be no charge for water used by either party to periodically flush the line and hydrants and periodic operation of the pump for maintenance purposes. An accounting of water delivered, billings issued, and payments made shall be maintained by each party hereto and each party's accounting shall be subject to audit by the other party. Annually, the parties will 6 review the O & M costs incurred to determine if payment is due by the party incurring lesser costs to the party incurring greater costs.

TERM

18. The term of this MOA shall be for a period of forty (40) years beginning on the date first written above, which is the expected functional life of the improvements.

This MOA may be extended upon the mutual written consent of the City and District.

LICENSE FOR ENTRY ON CITY PROPERTY BY DISTRICT

19. For the term of this MOA, and subject to all terms and conditions herein, CITY agrees to afford access and permit the District to enter the following portions of City real property to the extent reasonably necessary for the purposes of the construction, maintenance, and operation of a pump station: City owned real property identified by Assessor's Parcel Number [to be identified] and more particularly described in Exhibit D, attached hereto and incorporated herein by reference.

OWNERSHIP OF PUMP STATION AND INTERCONNECTION PIPELINE

20. The City and the District will mutually maintain ownership of the pump station and interconnection pipeline improvements through the term of this MOA. At the conclusion of the term of this MOA, the District shall have the option to remove the pump station from the property of City or offer to sell the pump station to the City at fair market value. In the event City terminates this Agreement at any time prior to expiration of the full term (i.e., prior to expiration of the 40 year term), the District shall have the right to determine whether to remove the pump station from the City’s real property recited in Section 16 (above), or allow it to remain. In the event District terminates this Agreement at any time prior to expiration of the full term (i.e., prior to expiration of the 40 year term), the City shall have the right to determine whether District is to remove the pump station from the City’s real property or whether the pump station shall remain in its location, in which case it shall thereafter constitute the City’s improvement and the City shall have no obligation to compensate the District for allowing the pump to remain.

INDEMNIFICATION

21. Each party shall indemnify, defend (with legal counsel acceptable to the indemnified party) and hold the other harmless against all actions, claims, demands, and 7 liabilities and against all losses, damages, costs, expenses, and attorney's fees, arising directly or indirectly out of an actual or alleged injury to a person or property in the same proportion that its own acts and/or omissions are attributed to said claim, demand, liability, loss, damage, cost, expenses, and/or attorney's fees.

ASSIGNMENT

22. Except for an assignment to a successor operator or agency as stated in this Section 19, neither party shall assign any interest in this MOA and shall not transfer any interest in the same without the prior written consent of the other party hereto, except that claims for money due or to become due either party may be assigned to a bank, a trust company, or other financial institution without such approval. Written notice of any such transfer shall be furnished promptly to the other party. Any attempt at assignment of rights under this MOA except for those specifically consented to by both parties or as stated above shall be void. Notwithstanding the foregoing, in the event all of the assets constituting the water purveyance system of either the City or the District are transferred to a successor agency or water supply operator, this MOA shall continue and transfer to the successor or assign.

MODIFICATION

23. This MOA may only be modified by a written amendment thereto, executed by both parties. Parties will meet periodically to review and revise the protocols developed in the agreement.

MEDIATION, ATTORNEY'S FEES AND COSTS

24. If any dispute develops between the City and the District related to this MOA, the parties agree to submit the dispute to mediation prior to proceeding with any litigation. If any action at law or in equity is necessary to enforce or interpret the terms of this MOA, the prevailing party shall be entitled to recover reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. The parties acknowledge that this MOA was mutually drafted by the City and the District, and neither shall be deemed the drafter for purposes of contract interpretation in the event of a dispute.

JURISDICTION AND VENUE

25. This MOA shall be construed in accordance with the laws of the State of California and the parties hereto agree that venue of any action or proceeding regarding 8 this MOA or performance thereof shall be in the Humboldt County Superior Court for the State of California.

NOTICES

26. All notices that are required to be given by one party to the other under this MOA shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited with the United States Post Office for delivery by registered or certified mail addressed to the parties at the following addresses, unless such addresses are changed by notice, in writing, to the other party.

City of Trinidad
409 Trinity Street
P.O. Box 390
Trinidad, CA 95570
Westhaven Community Services District
446 6th Avenue
Trinidad, CA 95570
IN WITNESS HEREOF, this MOA is duly executed in Humboldt County, California on the day and year first written above.

City of Trinidad Westhaven Community Services District
________________________________ _________________________________ Mayor Board Chair
Exhibit B.1
Project 1 - Emergency Intertie Construction Project (Grant Budget) BUDGET CATEGORY Grant Agmt Budget WCSD City
(a) Project Administration 65,000
WCSD Project Admin - invoices, reports, agency coordination, contract management, project completion report (and accountability report if advance payment is requested) 25,000 25,000
City Project Administration - agency coordination, contract management, submittals 40,000
40,000
(c) Planning / Design / Engineering / Environmental Documentation 215,000 WCSD Consultant - Planning, Encroachment Permit, California Coastal Commission & CEQA 80,000 80,000
WCSD Engineer- Project Design 95,000 95,000
WCSD Project Monitoring Plan 10,000 10,000
City Engineer Consult, Review & Concurrence 27,000 27,000 City Planner Consult, Review & Concurrence 3,000 3,000
(d) Construction / Implementation 1,576,600
WCSD - Construction 1,189,600 1,189,600
WCSD - Construction Administration & Closeout 357,000 357,000 City Engineer Consult, Review & Concurrence 28,000 28,000 City Planner Consult, Review & Concurrence 2,000 2,000
TOTAL GRANT BUDGET 1,856,600 1,756,600 100,000
Cost overruns to be shared proportionally according to most current annual water sales.

FY 21-22 City water sales 318,925
FY 21-22 WCSD water sales 218,459
Construction contract cost overruns during FY 22-23 537,384 40.65% 59.35% Construction contract cost overruns during FY 23-24 based on FY 22-23 annual water sales
Exhibit B.2
Intertie Facility Operations & Maintenance Cost Apportionment BUDGET CATEGORY Frequency Estimated
Costs
WCSD City
Flush Hydrants yearly 50% 50%
Exercise valves yearly 50% 50%
Test & calibrate meters yearly 50% 50%
Repairs as needed 50% 50%
Pipeline Replacement - depreciation Schedule end of useful life 50% 50% Pump Operation - power & diesel costs yearly 50% 50%
Pump Maintenance contract yearly 50% 50%
Pump Repairs as needed 50% 50%
Pump Replacement end of useful life 50% 50%
Distribution
Distribution
DISCUSSION AGENDA ITEM 2

SUPPORTING DOCUMENTATION ATTACHED

2. Discussion/Decision regarding Appointment of Councilmember to the Tsurai Management Team.

AGENDA ITEM: Council Appointment to TMT
Date: August 23, 2022
________________________________________________________________________ ANALYSIS:

The Tsurai Management Team (TMT) has two representatives from the City Council. Jack West is one representative, but the other position has become vacant. Ideally the Council can appoint another representative since Jack is unavailable to attend the upcoming TMT meeting on August 26th from 10 am-12 pm.

ACTION:

Appoint one Council Member as representative to the Tsurai Management Team.

DISCUSSION AGENDA ITEM 3

SUPPORTING DOCUMENTATION ATTACHED

3. Discussion/Decision regarding Appointment of Two (2) Councilmembers to Mediation Between the City and Tsurai Ancestral Society.

AGENDA ITEM: Council Appointment for Mediation
Date: August 23, 2022
________________________________________________________________________ ANALYSIS:

The City of Trinidad v. Tsurai Ancestral Society lawsuit is in mediation. The City Attorney is requesting that the City Council appoint two Council Members to represent the City along with the City Manager. Two vacancies exist since Richard Clompus and Dave Grover have resigned from the City Council. The next scheduled mediation dates are September 19-20.

ACTION:

Appoint two Council Members to the mediation of the City of Trinidad v. Tsurai Ancestral Society lawsuit.

DISCUSSION AGENDA ITEM 4

SUPPORTING DOCUMENTATION ATTACHED

4. Conduct Short-Term Rental License Lottery for Applicants on the Waitlist through October 2021.

AGENDA ITEM: STR Lottery
Date: August 23, 2022
________________________________________________________________________ ANALYSIS:

The Short-Term Rental (STR) Ordinance calls for a wait list and lottery to fill vacancies. There are currently two vacancies in the Urban Residential (UR) zone. The City will follow the procedure stated in the STR Ordinance:
“The City will randomly draw a name from the waiting list for the appropriate type of license and zone. If the property meets the applicable location standards, that owner will have 45 days to submit a complete STR License application, along with any other associated license or permit applications (Use Permit, OWTS Operating Permit, etc.) that may be required. If the property owner does not obtain an STR License within 90 days, or if the property does not meet the applicable location standards, the City will draw another name from the waiting list for that zone and STR type.”
ACTION:

The Mayor will draw the numbers associated with the names on the wait list from a professional bingo wheel at the Council meeting.

DISCUSSION AGENDA ITEM 5

SUPPORTING DOCUMENTATION ATTACHED

5. 2022 General Election Calendar Update.

DISCUSSION AGENDA ITEM
Date: Tuesday, August 23, 2022
Item: November Election Schedule and Upcoming Deadlines Background Info: The City’s November 08, 2022 Election ballot will include the Occupancy Tax Increase Measure, and Three (3) Councilmember seats.

The current Councilmember terms are:

Ladwig Term Expires December 2024
West Term Expires December 2024
Kelly Term Expires December 2022
Tuttle Term Expires December 2022
Empty Term Expires December 2022
The list of deadlines related to the Election is as follows:
• On or before July 19 - Election Notice: A notice will be published in the 3 locations throughout the City (City Hall, Murphy’s Market, and the Trinidad Post Office), and in the Times-Standard & Mad River Union announcing the November Election the Council positions available, and the Occupancy Tax Increase Measure.
• July 19 – Candidate Nomination Period Opens: Anyone who wants to file as candidate for one of the (3) open positions may pick up nomination packets from the Clerk’s office at the Town Hall.

Fee for filing a candidate statement in the election ballot is $375. Payment must be made when the nomination packets are submitted. Deadline for incumbents to file nomination papers is 2:00pm, Friday, August 12.
• August 12 – Deadline for Incumbents to file Nomination Packet. • August 12 – Deadline to file Arguments For/Against the Occupancy Tax Increase • August 18 – Extended Deadline for Candidate Nomination Packets IF NO INCUMBENTS file for the positions.
• August 22 – Deadline to file REBUTTALS to Arguments For/Occupancy Tax Increase. • August 22 – Deadline to file Impartial Analysis
• November 08 – Election Day
AUGUST 23rd UPDATE
City Council Seat Election: As of August 23, all of the preparation deadlines have been met. Four (4) Candidates for Three (3), 4-Year Terms have met the eligibility requirements to have their names appear on the November 08 ballot. The list of candidates, along with their ballot designations is as follows:
- Jack Tuttle, Appointed Incumbent
- Cheryl Kelly, Appointed Incumbent
- Kati Breckenridge (undesignated)
- Michael J. Morgan, Business Owner
Because there are no wards or districts in Trinidad, the top 3 vote receivers win the seats.

Occupancy Tax Increase Ballot Measure P: The following documents have been received by their respective deadlines and preparations are underway in partnership with Humboldt County Elections to draft the Voter Information Pamphlet, and November 08 Ballot:
- Resolution 2022-10; Submission of the Occupancy Tax Increase Ballot Measure to the Electorate - Ordinance 2022-03; Redraft of Municipal Code Title 3, Chapter 3.20 regarding Tourist Occupancy Tax - City Attorney Impartial Analysis
- Argument For Measure P
- Argument Against Measure P
- Rebuttal to Argument For Measure P
- Rebuttal to Argument Against Measure P
All of the documents will be published in a quick link file on the home page of the City’s website as soon as it is completely up and running.

Staff Recommendation: Information item only. Review and file.

Attachments: None.

Trinidad City CouncilAugust 23, 2022

Trinidad City Council
August 23, 2022