City Council Meeting Agenda: 05-14-2024 Page 1
Posted: Friday, May 10, 2024
NOTICE AND CALL OF A REGULAR MEETING OF THE
TRINIDAD CITY COUNCIL
The Trinidad City Council will hold a regular meeting on TUESDAY, MAY 14, 2024, at 6:00 PM
at the Trinidad Town Hall, 409 Trinity Street, Trinidad, CA.
CLOSED SESSION BEGINS AT 5:00PM.
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 comments to 409 Trinity Street, Trinidad CA, by 2:00pm on the meeting day, or email 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: 843 6005 4079 Passcode: 919816 PLEASE NOTE that live meeting logistics will be prioritized. Connectivity issues on the part of the City may result in the meeting being delayed or rescheduled but technical challenges experienced by individuals will not interrupt or halt progress of the meeting.
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION
1. Conference with Legal Counsel – Existing Litigation (Calif. Gov. Code Section 54956.9(d)(1)) (1 Case: City of Trinidad vs. Tsurai Ancestral Society, et. al, Humb. Co. Sup. Court Case No. 180684)
2. Personnel Exception 54957 - City Manager Performance Evaluation IV. RECONVENE TO OPEN SESSION
V. APPROVAL OF AGENDA
VI. APPROVAL OF MINUTES – 01-23-2024 ccpcstr, 02-13-2024 cc, 03-12-2024 cc, 04-09-2024 cc VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
VIII. STAFF REPORTS – City Manager & Humboldt County Sheriff Dept.
IX. 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. Please direct your comments to the Council as a whole, maintain decorum and avoid personal attacks on staff, members of the Council and/or other members of the public. Council and staff responses will be minimal for non-agenda items.
City Council Meeting Agenda: 05-14-2024 Page 2
X. 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. Staff Activity Report – April 2024
2. Financial Statements – March 2024
3. Law Enforcement Report – April 2024.
4. Project Completion and Certification Report of CAL OES, FEMA-4301-DR-CA 2017 Storm Damage Funding Claim.
5. Resolution 2024-06; Federal Functional Classification Map Change for Scenic Drive.
6. Resolution 2024-07; Request November General Election Consolidation with the County of Humboldt.
7. Agreement with Shawn Worth for Volunteer Fire Chief Services.
8. Community Yard Sale Event Announcement.
9. Onsite Wastewater Treatment System Maintenance Program Update.
DISCUSSION/ACTION AGENDA ITEMS
1. Proclamation 2024-02; Recognition and Support of North Coast Lemonade Day June 01, 2024.
2. Discussion/Decision regarding Contract with Humboldt County Sheriff to provide Law Enforcement Services to the City of Trinidad.
3. Discussion/Decision regarding Resolution 2024-08; Calling for an Election on a Proposal to Continue the City of Trinidad’s .75% Transaction and Use (SALES) Tax for 4-Years.
4. Discussion/Decision Regarding Resolution 2024-09; Adopting the Uniform Public Construction Cost Accounting and Review Procedures, and First Reading of Ordinance 2024-01; Adding New Chapter 4 to Title 3 of the Trinidad Municipal Code to Provide Informal Bidding Procedures Under the Uniform Public Construction Cost Accounting Action.
5. Discussion/Presentation Update on Water Rate Analysis
6. Presentation/Update regarding the FY2024 Budget and Upcoming FY2024 Budget Preparation Timeline
7. November 2024 City Election & Sales Tax Measure Update X. FUTURE AGENDA ITEMS
XI. ADJOURNMENT
APPROVAL OF MINUTES FOR:
JANUARY 23, 2024 CCPCSTR
FEBRUARY 13, 2024 CC
MARCH 12, 2024 CC
APRIL 09, 2024 CC
Supporting Documentation follows with: 16 PAGES
01-23-2024 CC/PC/STR Annual Meeting Minutes Page 1
MINUTES OF THE SPECIAL JOINT MEETING OF THE TRINIDAD CITY COUNCIL,
PLANNING COMMISSION, AND SHORT-TERM RENTAL ADVISORY COMMITTEE TUESDAY, JANUARY 23, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, Ladwig, West, and Breckenridge. Planning Commissioners in attendance: Hakenen, Johnson, Hopkins, Slay, (Cole-Absent). STR Committee members in attendance: Stockness, Bruce, Moran, (Hunt-Absent). City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Administrative Assistant Anton Souza, and Project Manager Jennifer Hakenen. Approximately (3) participants were present by video-conference, and (4) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. APPROVAL OF THE AGENDA
Motion (Ladwig/West) to approve the agenda as amended, removing Discussion 1 at the request of the Trinidad Rancheria. Passed unanimously.
IV. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) V. CONSENT AGENDA - None
VI. DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Presentation of the Annual Report from the STR Advisory Committee.
STR Committee Chair Dick Bruce presented the following Annual Report:
Trinidad licenses and regulates STRs. In 2016 the City approved an ordinance which attempted to address citizen concerns over the proliferation of unregulated STRs while fulfilling State mandates to provide visitor services and accommodations in the Coastal Zone. In 2022 the Coastal Commission approved the City’s revised and updated STR Ordinance which further addressed citizen concerns. The City’s municipal code defines a Short-Term Rental as “a rental of any dwelling, in whole or part, within the City of Trinidad, to any person(s) for transient use, other than (1) a permitted bed and breakfast, (2) ongoing month to month tenancy granted to the same renter for the same dwelling, (3) one less-than-30-day rental per year, or (4) a house exchange for which there is no payment”.
The Committee held 2 meetings in 2023:
January 23, 2023 - Joint Meeting with the City Council and Planning Commission The Committee presented their Annual Report and there was a general discussion on the operation of the STR program. The Committee recommended that the Council authorize a survey of City residents regarding the operation of the STR program and how it was currently (not historically) affecting them, and provided suggestions on how the survey could be structured. The Council agreed that a survey was a good idea and that a survey might also include questions regarding other City operations and issues. Although the Minutes of that meeting do not indicate that any motion was passed, it was generally understood that the City would move forward with a survey.
October 16, 2023 - A staff report was presented that reported:
1. The 2024 license renewal process is being streamlined and renewal packets will go out electronically unless a paper packet is requested.
2. The City has not received any formal complaints in 2023 related to the STR program.
3. Tourist Occupancy Tax for fiscal year 2022-23 was $164,771 vs $150,685 in 2021-22.
4. The voter approved Tourist Occupancy Tax rate increase from 8% to 12% took effect on April 1, 2023 and the City worked co-operatively with STR operators and managers to implement the increase.
5. The City plans to do a general survey of residents that includes questions about the STR program as previously recommended by the STR Committee.
6. Staff implemented a streamlined STR cost tracking system for 2023 licensing and discovered that the cost of issuing a new permit is approximately $800 versus the current fee of $300. 01-23-2024 CC/PC/STR Annual Meeting Minutes Page 2
Following the staff report the Committee passed the following motion:
“That the City implement a two-tier rate for issuing STR permits. One rate for new STR applications (to be determined by staff) and one for renewals and include a cost recovery feature for both.” Council/Commissioner comments included:
Kelly: Community survey will be going out in a few weeks and questions related to STR’s will be included.
Bruce: Cost recovery analysis was performed last year and the cost per permit averaged $800. The City should consider developing a new system to determine initial permit cost, compared with the flat rate for renewal permits.
Hakenen: Asked how the T.O.T. revenue factors into the cost recovery of STR permitting. Program directive should be revenue neutrality.
City Mananger Naffah explained that occupancy taxes are not intended to cover permit issuance.
Stockness: Renewal permit cost should be raised to at least $400.
Moran: Permit fee should recover the cost of issuance.
Slay: $800 was just a sample size of 2 recent permits issued. Does this reflect the larger sample size average? The website should also be a place to host STR documents and complaints.
Tuttle: Questioned the fairness of the STR Lottery system.
Ladwig: Asked Planning Commission to come up with alternatives to the current lottery system adopted. Would like to see some recommendations and make a decision.
City Planner Parker recommended adding this to bi-annual STR Ordinance review.
No public comment.
2. Discussion/Presentation – Open Public Forum to Solicit Input from the Community on Issues or Successes Committee Chair Bruce explained that unfortunately, and just as in 2022, no one from the public either attended the meeting or submitted written public comment on this item. As noted in the staff report, no formal complaints regarding STRs had been received year to date in 2023. Committee members generally agreed that the lack of complaints seemed to indicate that the ordinance appeared to be working better than in years past, although one Committee member indicated that they occasionally receive anecdotal verbal complaints about minor STR issues. It is hoped that more feedback will be obtained when the City completes the planned survey.
No public comment.
3. Related to the Implementation of the Short-Term Rental Ordinance Regulations.
4. Discussion/Decision regarding Committee Recommendations and Direction Moving Forward.
STR Chair Bruce explained that the operation of the STR program has improved since the Committee was formed in 2019. There have been no formal complaints filed with the City in the last 3 years. The Committee is receiving virtually no input from the public regarding STRs and the “Public Forum” at our October 16, 2023 meeting received neither written nor in person comments or suggestions.
Staff has streamlined the administrative part of the program and STR representatives report that the annual renewal process is working well. The Committee again requests direction from the Council moving forward.
Council/Commissioner comments included:
Moran: Recommend the committee be rested. Problems have been resolved, and the committee’s purpose was served.
01-23-2024 CC/PC/STR Annual Meeting Minutes Page 3
Stockness: Suggest waiting for the survey results before deciding to rest this committee.
Slay: The PC has a full agenda, and STR Committee relieves a small part of the burden placed on the PC with recommendations, discussion topics, etc.
Bruce: The Committee was established to put out fires. The City is on the right track now, and I would support a “half-time”. If the City wants to meet periodically for a specific purpose, that’s reasonable. If the complaints aren’t coming in, then perhaps the Committee should retire.
Motion (West/Ladwig) to suspend the STR Advisory Committee until further notice. Passed unanimously.
5. Discussion/Recommendation regarding a draft ADU Ordinance and whether any type of STR should be allowed in either an ADU or the primary unit.
City Planner Trever Parker explained that under state law, ADUs meeting certain standards are not allowed to be STRs, and for other ADUs, a local jurisdiction may prohibit them from being STRs. I have lumped all of these standard ADUs together in order to simplify the ordinance. Therefore, Coastal Commission staff feel that ADUs must be prohibited from being full-time STRs. In addition, there are several examples of ADU regulations in LCPs that prohibit both the ADU and primary unit from being STRs (including Humboldt County). And some Coastal Commissioners have pushed for that, but not all; staff opinions vary on this issue. There is also the option to allow ADUs (and/or primary units) to be STRs only with approval of a use permit, which is the same as for ADUs that don’t meet all the
standard requirements.
In addition, Trinidad has allowances for Homeshare and Resident STRs. Homeshare STRs are where the resident rents out a bedroom in their home while they are home. Resident STRs are where someone lives in their home most of the year but can rent the entire house for up to 60 days while they are gone. Except that ADUs should not be rented as Full-time STRs based on state law, Coastal Commission staff did not have a consensus about whether to allow other types of STRs should be allowed. However, ADU Ordinance Agenda Report January 23, 2024 STR/CC/PC Meeting they anticipate that some Coastal Commissioners will have strong opinions. So, we want to get direction from the community. It can be argued that with Trinidad’s caps on STRs, housing is already protected, and new ADUs would not result in additional STRs. In addition, Resident and Homeshare STRs could increase affordability of housing in Trinidad for residents and encourage the creation of ADUs.
In summary, the following questions in relation to ADUs and STRs should be considered:
1. Should the primary unit be allowed to be a Full-time STR?
2. Should Full-time STRs be allowed in an ADU subject to approval of a use permit?
3. Should Homeshare or Resident STRs be allowed in ADUs and/or the primary unit, and if so, with or without a use permit?
Council/Commissioner comments included:
Moran: The County is looking at Trinidad’s ordinance for guidance. Trinidad should look to the County for ADU advice. The County does not allow new ADU’s to be used as STR’s.
Stockness: No more than 1 STR per property.
Bruce: The ADU regulations are designed to make long-term housing available. Kelly agreed.
Breckenridge: How can the City define or require “affordable” housing? Support ADU’s being used as STR.
City Planner Parker noted that septic systems will ultimately limit ADU possibilities.
Hakenen: We also have to consider that having an ADU on the property operating as an STR could make owning a home in Trinidad affordable for someone that may not have the ability to do so. Tuttle agreed.
Tuttle: Can we condition an ADU be constructed with low-flow water conserving fixtures? Recommend ADU’s be for long-term tenants only.
01-23-2024 CC/PC/STR Annual Meeting Minutes Page 4
Ladwig: The STR Ordinance stands on its own. Encouraging ADU’s meets State law and objectives.
Kelly: Support new ADU’s as long-term only. West agreed.
Public comment included:
Jonna Kitchen – Trinidad Resident and Trinidad Retreats Owner I prefer basing caps on housing stock percentages, not ADU’s.
By a straw vote of 3 yes, 2 no, the majority of the Council favored ADU’s being restricted to long-term tenants only. It was also agreed that the discussion would be continued to a future meeting to allow more public comment and Council discussion. Results of the future discussion will be forwarded to the Planning Commission.
FUTURE AGENDA ITEMS - None
ADJOURNMENT: 8:30pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
02-13-2024 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, FEBRUARY 13, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, Ladwig, West, and Breckenridge. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Administrative Assistant Anton Souza, Project Manager Jennifer Hakenen, Grant Coordinator Becky Price-Hall, Grant Administrator Angela Cather, and City Engineer Steve Allen. Staff in attendance by video-conference:
City Planner Trever Parker. Approximately (6) participants were present by video-conference, and (22) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION – No closed session
IV. RECONVENE TO OPEN SESSION – No closed session to report on.
V. APPROVAL OF THE AGENDA
Motion (West/Kelly) to approve the agenda as amended, moving Discussion 3 to first on the list. Passed 4-0.
VI. APPROVAL OF MINUTES – 01-09-2024 cc, 01-23-2024 ccpcstr Minutes will be reviewed at the March 12 regular meeting.
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
West: Trails Committee meeting was pushed to February 20, and postponed again until April due to schedule conflicts. State Park workday is planned for February, but might get postponed due to inclement weather.
HCAOG discussed project budgets.
Kelly: Announced upcoming Water Advisory Committee meeting scheduled for March 05, 5pm. Congressman Huffman toured Scenic Drive last week. Supervisor Madrone looking for funding opportunities to support ongoing maintenance efforts.
Tuttle, Breckenridge, Ladwig: Nothing to report.
VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet, including Mercer-Fraser award for Tank and Pipeline project, Coastal Resiliency meeting, Occupancy Tax revenue, STR permit renewal process update, Trinidad Chamber mixer, film projects occurring in the area, May Celtic Fair, and that Water Plant Operation information requests will be addressed at the upcoming WAC meeting.
HCSO Lt. McCall summarized annual calls for service stats. City Manager Naffah requested information regarding the dog attack reported in Eureka, from the same owner/animal that was responsible for the incident in Trinidad that resulted in physical injuries last year.
Quarry Road/Mill Creek Lane resident (and dog attack victim) Ted Pease asked for follow up from McCall as well. Pease submitted a public record to the City last week describing a recent incident reported in Eureka involving the same owner, Mark Brodell, and his dog Claudia that viciously attacked and mauled a family member on their property. The victims have not heard from law enforcement at all since the attack, and there needs to be accountability and consequences.
Lt. McCall confirmed that citations were issued to the dog owner, but he left Trinidad without notifying County Animal Control. The City of Eureka Police Department is handling the current attack details. I have not received any updates from EPD.
Mayor Kelly requested follow up from HCSO on the issue.
IX. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) 02-13-2024 City Council Meeting Minutes Page 2
Diane Stockness – Trinidad
Listened to Ted Pease. I’d like to start a petition in Town Hall to get signatures from people that want the Eureka Police Department to press charges against the owner of the vicious dog. We need to stand up as a community and help our neighbors. Are we getting anywhere with the Community Ambassador program? Janine Volkmar – Trinidad Area Resident
Announced the upcoming Valentine’s Day event presented by the Civic Club.
Sherri Provolt – Trinidad Property Owner
Unfamiliar with the second reading process for Ordinances. Concerned about one element of the Ordinance up for the second reading, specifically on page 62.
X. CONSENT AGENDA
1. Staff Activity Report – January 2024
2. Financial Statements – December 2023
3. Law Enforcement Report – January 2024.
4. Second Reading of Ordinance 2024-01; Updating the CA Coastal Commission certified version of the City of Trinidad Zoning Ordinance, Title 17 of the Trinidad Municipal Code for consistency with the codified version of the Zoning Ordinance and reaffirming and correcting previous amendments that were not submitted to the Coastal Commission for certification.
Sherri Provolt pointed out packet page 62, Section 17.16.080, Cultural Resources. Regarding specific soil or use disturbances, “except for a fence to protect burial grounds…” this statement may have to be referred back to the Tsurai Management Team and include the Yurok Tribe and or the Coastal Conservancy.
City Planner Trever Parker explained that no substantive changes are being proposed. The intent of this is only to update code section numbers and grammatical changes.
For the record, Provolt requested that the Yurok Tribe needs to be included.
Parker noted that 17.17.020 should include A-E, not just A.
Motion (Ladwig/West) to accept the second reading with the City Planner’s recommended amendment.
Passed unanimously.
5. Second Reading of Ordinance 2024-02; Correcting and reaffirming codification of the City of Trinidad Zoning Ordinance
6. Authorization to Award Construction Contract for HSIP Cycle 10 Project HSIPSL-5036(016) to RAO Construction Co, Inc.
Motion (West/Breckenridge) to approve the consent agenda as amended, pulling Discussion 4 to respond to questions. Passed unanimously.
XI. DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Decision regarding Resolution Honoring Volunteer Fire Chief Tom Marquette for 30 years of service, and Introducing new TVFD Fire Chief Shawn Worth.
Mayor Kelly read the resolution aloud, thanked Marquette for his service, and presented him with a plaque honoring his service. The Council expressed shared support and appreciation.
Tom Marquette thanked his wife and family for allowing him to volunteer.
Public comment included:
Bryce Kenny – Trinidad
I served for 20 plus years with Tom. He went to big and small fires, Prisoner Rock fire, births, deaths, and everything in between.
Dick Kieselhorst – TVFD Assistant Chief
Served with Tom for 13 years. You don’t know what it’s like to haul a 400 man out of a second story building with Pomeranian dogs biting your legs. It’s been a pleasure serving with Tom. My favorite story is that one night 02-13-2024 City Council Meeting Minutes Page 3
the phone rang and Tom answered. The lady said her cat was stuck in the tree. Tom asked how much it weighed. The lady asked why that mattered. Tom said, “it depends on what size water hose I need to bring.” J Diane Stockness – Trinidad
I’ve watched Tom walk to the Fire Department for many years. Then he got a bike. Then he got an electric bike.
My son volunteered with him as a teenager. Thanked him for his service.
Jan West – Trinidad resident and Civic Club member
Thanked Tom for all he’s done for the town, and in partnership with the Civic Club.
City Manager Naffah introduced incoming TVFD Chief Shawn Worth. Worth is currently the Westhaven Fire Chief, volunteering there for nearly 30 years, and happy to now serve the City of Trinidad and help Tom retire.
The Council adopted the resolution by consensus, thanked Marquette, and welcomed Worth to the TVFD.
2. Discussion/Decision regarding Appointment Confirmation of Elizabeth Hinojosa from the Trinidad Coastal Land Trust to fill the Vacant Seat on the Trinidad Trails Committee.
Mayor Pro-Tem West introduced Elizabeth Hinojosa, and explained that the Trinidad Coastal Land Trust nominates her as their designated representative on the Trails Committee.
As per the Trinidad Trails Advisory Committee Resolution, the City must formally recognize and appoint new members. Action taken by the Council will confirm the appointment.
The Trails Committee is now currently operating without 1 member; (1) General Public Representative.
The Committee Membership currently consists of:
(1) City Councilmember (Committee Chair) Jack West
(1) Planning Commission liaison Tom Hopkins
(2) General Public representatives VACANT / Tim Needham (1) Tribal representative of the Yurok Tribe Sherri Provolt (1) Tribal representative of the Trinidad Rancheria Trina Matthewson (1) Tribal representative of the Tsurai Ancestral Society Kelly Lindgren (1) Visitor Services/Business Community representative Elizabeth Hinojosa (Trinidad Coastal Land Trust) There was no public comment.
Motion (West/Kelly) to approve the appointment of Elizabeth Hinojosa to fill the Visitor Services/Business Community representative position on behalf of the Trinidad Coastal Land Trust. Passed unanimously.
3. Discussion/Decision regarding Letter of Support for Trinidad Rancheria RAISE Grant for the 101 Trinidad Area Access Improvement Project.
City Manager Naffah explained that the Rancheria requests a letter of support for the RAISE grant funding they seek for the continued development, planning, design and engineering of the US 101 Trinidad Area Access Improvement Project. Letters of concern have been received by the City asking the Council to not support this grant since several alternatives are still being considered.
Public comment included:
Elaine Weinreb – Co-Chair of Friends of Westhaven
We’ve been following this project closely and believe it will gravely impact our community. There is an email plea in the meeting packet for the Mayor’s support. I hope it wasn’t given. Why send a letter of support when you don’t know what option has been selected? Wait until February 20 when the Rancheria provides this information at a public meeting. Deadline for the letter of support is February 28.
Bryce Kenny – Trinidad
Echoed Weinreb’s comments. If you look carefully at the project justification details, it says Scenic Drive between the City and the Casino is unsafe. That is not true. The south part of Scenic is unsafe, not the north part. Slight-of-hand is being used to support a tremendous amount of public fund spending. The Rancheria 02-13-2024 City Council Meeting Minutes Page 4
claims their lands need to be reconnected. This is misleading and borders on dishonest. The Rancheria land on the east side of the freeway was acquired after 1962 when the freeway was built. Think carefully before you condone that “whatever you call it”. The golden ring here is to increase the patronage of the Casino, and we’re being dragged into the middle of it. This area should be known for it’s natural splendor, not a Casino.
Hold off on any endorsement until you know which option you’re supporting… even if it ends up being “no” option.
Sherri Provolt – Trinidad Area Resident
I agree with the prior comments. Too early to support this. Plans proposed will change how we enter the town. Keeping a small-town feel is what we need. What the Rancheria wants does not align with what the City wants. What is the benefit to the City? What are the traffic safety statistics? Will this help? What’s the purpose? Where is the data to support these changes? Public outreach needs to be done to all City residents. Vote based on what your citizens want.
Geoff Proust – Trinidad Area Resident
Interesting to hear this request with only 2 weeks before the deadline. I have similar feelings with Bryce Kenny that our area is known for the small-town vibes and environmental beauty. Go slow on this.
Ted Pease – Trinidad Area Resident (Zoom)
Agree with prior commentors. Interchange would be an enormous change for Trinidad. Not enough talk about this. Too many unknowns.
Dick Bruce – Trinidad
Echo prior speakers. The main objective of the interchange is to service the Casino and Hotel. No economic benefit to the City of Trinidad. In fact, it will cause economic decline due to potential lost tax revenue. The RAISE Grant helps sponsors to complete critical freight and passenger infrastructure projects.
Council comments included:
West: I support the Rancheria, but after hearing what I’ve heard tonight, I’d like more information from the Rancheria about this.
Breckenridge: I attended the last public meeting hosted by the Rancheria. The ideas proposed seemed good to me initially, but after public comments tonight I feel more information is needed. Tuttle agreed.
Ladwig: The timing is such that we won’t be bringing this back before the deadline. Agree with other Councilmembers that more information is needed, and I hope to attend the Rancheria meeting on the 20th.
Kelly: The Rancheria has been a great partner with the City. We come to these meetings with open minds, and I feel that a round-about could be a nice improvement and Scenic Drive can be safer. However, I appreciate the public comments and can’t find a way to support this without more info.
Motion (Ladwig/Kelly) to seek more input at the February 20 meeting hosted by the Trinidad Rancheria to make a more informed decision about this request for a letter of support. Passed unanimously.
4. Stormwater Project Recap
City Engineer Steve Allen presented the history of the project, the purpose, timeline, geotechnical science and data collected, construction phases, team members, lessons learned, and acknowledgements.
Grant Administrator Becky Price-Hall thanked GHD for their support, and also thanked late Mayor Chi-Wei Lin for embracing the project after receiving the first letter from the State Water Board.
Council questions included:
Tuttle: Is there water quality data from before/after? Price-Hall explained that initial water quality data was collected in the beginning, and monitoring samples have been taken throughout the project. Sampling data is part of the final project report.
Council thanked staff for all the work.
Presentation item only. No decision made.
02-13-2024 City Council Meeting Minutes Page 5
5. Continued Discussion/Decision regarding the Preliminary Draft Accessory Dwelling Unit Ordinance.
City Planner Trever Parker explained that this item was continued from the January CC/PC/STR meeting, and recapped that for a number of years, State law has required local jurisdictions to approve Accessory Dwelling Units (ADUs) that meet certain standards. As the State housing crisis continues and housing goals have not been met, the State has further curtailed local jurisdictions’ ability to restrict ADUs.
There is one particular area that City and Coastal Commission staff would like to get input on, and that is whether STRs of any type are allowed in either the ADU or primary dwelling (§ 17.54.060.H). The Planning Commission discussed this at their November meeting, and there was no consensus. The Planning Commission requested input from the STR Committee in particular. The CC/PC/STR meeting in January did not reach any conclusions. The Council requested additional time to consider it.
The focus of this meeting should be on the issue of STRs in relation to ADUs. Any deliberations and recommendations should be specific to STRs. There has not been much public attendance at the Planning Commission meetings, and additional public input on the entire ADU ordinance is desired. Background on the entire ordinance is included below, and people are welcome to comment on any aspect of the ordinance for future Planning Commission consideration. Under state law, ADUs meeting certain standards are not allowed to be STRs, and for other ADUs, a local jurisdiction may prohibit them from being STRs.
Coastal Commission staff feel that ADUs must be prohibited from being full-time STRs. In addition, there are several examples of ADU regulations in LCPs that prohibit both the ADU and primary unit from being STRs (including Humboldt County). Some Coastal Commissioners have pushed for that, but not all. There is also the option to allow ADUs (and/or primary units) to be STRs only with approval of a use permit, which is the same as for ADUs that don’t meet all the standard requirements.
Trinidad has allowances for Homeshare and Resident STRs. Homeshare STRs are where the resident rents out a bedroom in their home while they are home. Resident STRs are where someone lives in their home most of the year but can rent the entire house for up to 60 days while they are gone. Except that ADUs should not be rented as Full-time STRs based on state law, Coastal Commission staff did not have a consensus about whether to allow other types of STRs should be allowed.
It can be argued that with Trinidad’s caps on STRs, housing is already protected, and new ADUs would not result in additional STRs. Resident and Homeshare STRs could increase affordability of housing in Trinidad for residents and encourage the creation of ADUs. In summary, the following questions in relation to ADUs and STRs should be considered:
1. Should the primary unit be allowed to be a Full-time STR?
2. Should Full-time STRs be allowed in an ADU subject to approval of a use permit?
3. Should Homeshare or Resident STRs be allowed in ADUs and/or the primary unit, and if so, with or without a use permit?
Council questions included:
Kelly: Thinking through the scenarios help me. If I own a residence and build and ADU, then turn it into an STR, there would be no next housing gain. If I’m an investor with a home in Trinidad, then build an ADU, there’s a net housing gain. I support number 1. I don’t support 2 and 3.
Parker noted that State Law says ADU’s with ministerial permit exemptions are not allowed. If a Use Permit is issued, it’s likely that the ADU could be used as an STR. That’s my current understanding.
City Manager Naffah agreed with Kelly’s preferences. The fundamental point is to create long-term housing.
Tuttle: STR committee noted there was an overall STR cap that makes prohibiting ADU’s as STR’s unnecessary.
Kelly: The spirit of the ADU is for creating month-to-month housing, but the ordinance needs to stand on its own.
Parker noted that overall STR cap only applies to full-time STR’s, not Homeshare or Resident categories. ADU’s are capped at 36 based on water and septic capacity assessments. 02-13-2024 City Council Meeting Minutes Page 6
West: Agree with Kelly’s preferences. JADU’s may be looked at differently.
Parker noted that JADU’s are basically carved out of an existing house, not something built separately.
There was no public comment.
Motion (Kelly/Ladwig) to direct the Planning Commission to move forward with the following preferences:
1. Should the primary unit be allowed to be a Full-time STR? (UNANIMOUS YES)
2. Should Full-time STRs be allowed in an ADU subject to approval of a use permit? (UNANIMOUS NO)
3. Should Homeshare or Resident STRs be allowed in ADUs and/or the primary unit, and if so, with or without a use permit? (UNANIMOUS NO)
Council may consider revising their position if the Planning Commission develops the ordinance and arguments that challenge the direction given tonight.
6. Consider Update of City Dog Ordinance.
City Manager Naffah explained that Supervisor Madrone recently indicated that the County’s priorities have shifted, moving their Dog Ordinance revisions to the back burner. The City was hoping to align the vicious dog ordinance sections with the County’s since they provide Animal Control Services to the City, and to streamline responses to incidents. The City has performed outreach, posted signage, and considered wide-range marketing using radio media.
Council questions included:
Breckenridge: I’m hoping to increase awareness, through licensing perhaps, of the need to report aggressive dogs to the City to target enforcement efforts. Septic Sue was a great example of raising this awareness in a creative way.
Kelly: Concerned about enforcement. Ordinances seem strong.
West: We have police and security staff that can issue tickets when they see leash law violations occuring.
Public comment included:
Ted Pease – Trinidad Area Resident, Dog attack victim
Thank the Council for spending time on this issue. The leash law had nothing to do with attacks by the dog, Claudia. A negligent human was to blame. Enforcement is as much of a problem for the State, County, and the City. The property owner is liable for the attack that happened to us. The City could fine the property owner.
This is an enforcement mechanism. Another place this is a problem is on the beach and trails. Public safety can be improved if enforcement occurs at those locations. Visiting dogs are typically the problem, not resident dogs.
Fines would be good, if incompetent, irresponsible owners can be identified. It’s the County’s fault for not doing something about Claudia last year and letting her move to Eureka without notification. Consider creating a competent City panel or Committee, empowered to evaluate specific cases, that can be referred to the Council, or County Animal Control for further consideration.
Council comments included:
Breckenridge: Aggressive dog reporting should be received by the City in a safe and welcoming manner.
Ladwig: Consider including the County’s vicious dog hearing process in the City’s Ordinance as another tool to control this problem.
Kelly: Agreed with Ladwig. Increase awareness, harden the ordinance, develop a panel to evaluate cases, and bring back the topic for more discussion and development.
City Manager Naffah will bring this to the City Attorney and CIRA’s attention for additional advice, and return with further action for Council to consider.
02-13-2024 City Council Meeting Minutes Page 7
7. Telephone Carrier of Last Resort Obligation (AT&T Landlines) City Manager Naffah explained that the City was notified at the end of January that AT&T had filed an Application for Relief from Carrier of Last Resort throughout the State of California for the provision of telephone landlines. This impacts all of Humboldt County except for the City of Ferndale which is served by Frontier Communications. A Notice of Pending Regulatory Application is before the California Public Utilities Commission (CPUC). An online public forum is scheduled for March 19th at 2pm and 6pm. Letters can also be sent to the CPUC.
Public comment included:
Sherri Provolt and Patti Fleschner recommended sending the letter.
Motion (Kelly/Ladwig) to direct the City Manager to draft a letter and send it to the CPUC opposing an Application for Relief from Carrier of Last Resort by AT&T. Passed unanimously.
8. Introduction/Presentation of the 2024 General Election Year Calendar.
City Clerk update on the upcoming election year deadlines.
Presentation item only. No decision made.
FUTURE AGENDA ITEMS
ADJOURNMENT: 9:30pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
03-12-2024 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, MARCH 12, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, Ladwig, West, and Breckenridge. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Administrative Assistant Anton Souza, and Project Manager Jennifer Hakenen. Approximately (3) participants were present by video-conference, and (10) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION – No closed session
IV. RECONVENE TO OPEN SESSION – No closed session to report on.
V. APPROVAL OF THE AGENDA
Motion (Ladwig/West) to approve the agenda as amended, removing Discussion 1 at the request of the Trinidad Rancheria. Passed unanimously.
VI. APPROVAL OF MINUTES – 01-09-2024 cc, 01-23-2024 ccpcstr, 02-13-2024 cc Motion (West/Kelly) to approve the 01-09-2024 cc minutes as written. Passed 4-0-1 (Ladwig abstain due to absence).
01-23-2024 ccpcstr & 02-13-2024 cc will be prepared and reviewed at the April meeting.
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
West: Trails Committee meeting will be held on March 19. Town Hall improvement plan being developed.
Ladwig: Coastal Resiliency Plan meeting was small. Public is encouraged to attend the next meeting.
Breckenridge: Any information about the Axel Lindgren Trail reopening? City Manager Naffah noted the trail should be open by July.
Kelly: Email thread with HARP organization regarding establishing a loading and unloading zone at the harbor launch beach. Rancheria plans to address signage when the Lighthouse, Stormwater, and Cultural Center projects are complete. Rancheria intends to cooperate with people that use the area as its intended for – loading and unloading – not for parking. Water Advisory Committee discussed upcoming rate increase, staffing, and recruiting a full-time T-3 operator. Also concerned with PWA invoicing from last year, financial issues, and source water options.
Tuttle, Breckenridge: Nothing to report.
VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet, including Mercer-Fraser beginning Water Tank and Pipeline project construction, and CPUC hearing for AT&T landline service. Traffic calming update includes cost of traffic counts ($5,000), and Ocean and View Street signage/markings will be added when the HSIP construction project happens this summer. Community Yard Sale in June, Trinidad Chamber update, Water Rate study underway, and Coleman Engineering monthly invoice update. Provided rough calculations comparing in-house staffing vs. contract staff cost for water plant operations. Water reserve fund balance will be determined when the financial statements are confirmed.
Current grant projects underway make up for capital improvement funds spent to cover operating expenses. I believe the reserve balance is approximately $800,000, but we’ll know more when the financial statements are reviewed.
HCSO Lt. McCall was unable to attend tonight’s meeting. Naffah stated no update was provided for Marc Brodell dog incident.
Tom Davies: Water Fund reserve balance figures presented by the City Manager do not make sense. Naffah explained his comparison between how much the contract staff costs, vs. the true cost of in-house staffing.
Concerned how these last few years of expenses will be incorporated into the new rate structure. It should be communicated clearly to the rate payers how this will be calculated. Ocean Avenue striping plan should be shared with the residents.
03-12-2024 City Council Meeting Minutes Page 2
IX. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Lori Keating – Trinidad Area Resident
Outside water customers pay more than inside city customers and don’t get to vote on it.
Ted Pease – Trinidad Area Resident
Marc Brodell didn’t show up to the vicious animal hearing. EPD is investigating, but has not been able to track him down.
Patti Fleschner – Trinidad Museum
Boardmember Scott Baker suggested a Trinidad Time Capsule and the Museum is seeking contributions for it.
Des Johnston – Trinidad Area Resident
Celtic Fair organizer. Wife and I moved here from Merced. Not much was happening here, so I thought about a Celtic Fair my family attended annually in Sonora and wanted to organize one for Trinidad. Art, Music, and goats are part of the festivities, scheduled for mid-May.
Dick Bruce – Trinidad
In February Caltrans issued EIR for Rancheria Interchange. March 15 is the deadline for public comments on the alternatives proposed. The Rancheria has held 2 public scoping meetings. The City has not sponsored a public meeting to discuss this project. I recommend the City hold a meeting to help frame comments to be provided to Caltrans.
Richard Johnson – Trinidad Area Resident
Regarding the Trinidad Sales Tax, I have 3 categories. I gladly pay the Trinidad tax when I purchase goods and services in Trinidad. I spent several days making calls to State tax officials and learned that the State has no way of preventing the incorrect rate from being charged for online purchases. The State understands it’s a problem, but admittedly cannot do much about it. 1) Ask the vendor to not charge the additional rate if you live outside the city. 2) If you are charged incorrectly, call credit card company and ask for a refund. 3) file a complaint against the vendor. The City can help retailers by posting boundaries and streets on their website.
The City should issue a letter to all outside city residents a letter exempting them from inside the inside city rate.
This is taxation without representation, and you may soon run out of runway. The City should make annexation a high priority.
Dave Hankin – Trinidad Area Resident
Everyone in 95570 has this tax issue. Many people are contributing to the City coffers and don’t know it.
They’re not getting any services for their contribution either.
X. CONSENT AGENDA
1. Staff Activity Report – February 2024
2. Financial Statements – January 2024
3. Law Enforcement Report – February 2024.
4. 30-Day Contract Extension with GHD for On-Call Engineering Services.
5. Award Construction Contract for Trinity Street Pavement Rehabilitation Project to GR Sundberg, Inc.
6. Approval of Resolution 2024-03; Authorizing Submittal of Ordinances 2024-01 and 2024-02 Amending the Zoning Ordinance to create Consistency between the Codified and Certified Versions.
Motion (Ladwig/West) to approve the consent agenda. Passed unanimously.
XI. DISCUSSION/ACTION AGENDA ITEMS
1. Continued Discussion/Decision regarding Letter of Support for Trinidad Rancheria RAISE Grant for the 101 Trinidad Area Access Improvement Project.
Pulled from the agenda by the Rancheria.
03-12-2024 City Council Meeting Minutes Page 3
2. Presentation/Update from Trinidad CERT Team.
Mayor Kelly announced that 14 members have been sworn in, with 6 additional incoming for a total of
20. Teams have surveyed the 95570 zip code after the most recent storm. Good trial run for the team to do post-storm surveying. Quarterly team training prepared, along with a list of needs. Serious need for radio antenna replacement at the Fire Department. Money in the budget to replace it. Participating in Humboldt Cert, and look into getting a Ham Radio repeater as well to improve the signal strength.
April 14 is traffic control/safety training. Most excited about the Trinidad Disaster Preparedness Workshop on May 11, from 1-4pm.
West: Foggy Bottom Run in Ferndale benefited from CERT participation this past weekend.
CERT Volunteer Richard Johnson encouraged having the antenna on the Firehouse repaired. Also thanked the Humboldt Ham Radio Club for their assistance in getting the equipment repaired.
Jacque Hostler-Carmeson – Trinidad Rancheria
The Rancheria would like to be partners in Trinidad’s CERT emergency preparedness, and looking for opportunities with coordination. Please add us to the CERT email information list.
Presentation/Update only. No decision made.
3. Conduct Short-Term Rental License Lottery for Applicants on the Waitlist through February 2024.
City Manager Naffah explained that the Short-Term Rental (STR) Ordinance calls for a wait list and lottery to fill vacancies. There is currently one vacancy 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.”
The Mayor drew the numbers associated with the names on the wait list from a professional bingo wheel at the Council meeting in the following order:
1) Abdul Rhaman
2) Katie Donnelly
3) Taylor and Lisa Leferve
Staff will notify the first name drawn and offer them the opportunity to have an application submitted within the specified timeframe.
4. Discussion/Decision regarding Resolution 2024-02; Authorizing Creation of the Animal Control Advisory Committee.
City Manager Naffah explained all the steps taken by the City over the last year following several dog incidents that occurred in the City. In addition, the proposed Animal Advisory Committee was recommended to make recommendations to promote awareness and assist the Council with aligning the ordinances with the County for more efficient enforcement, among other things.
Public comment included:
Jacque Hostler-Carmeson – Trinidad Rancheria
Would like to have a Rancheria representative included on the Committee. 03-12-2024 City Council Meeting Minutes Page 4
Erin Quinlan – Trinidad Area Resident
Hard to exercise dogs on the beach on a leash. Will this be complaint driven? Council comments included:
Ladwig suggested 2-year member terms, and adding the Rancheria as a voting member.
Breckenridge volunteered to Chair the committee. Tuttle volunteered as Co-Chair.
City Manager suggested replacing Animal Control Officer with Rancheria representative (as voting member). Veterinarian and Animal Control Officer could remain as subject matter experts helping advise policy making.
Motion (Ladwig/West) to approve Resolution 2024-02; Authorizing creation of the Animal Control Advisory Committee with the following amendments; 1) Add 2-year term, 2) Add Trinidad Rancheria as voting member, 3) Make Animal Control Officer and Veterinarian as subject matter expert participants.
Passed unanimously.
Motion (Kelly/West) to appoint Breckenridge as Chair, and Tuttle as co-Chair. Passed unanimously.
5. November 2024 City Election & Sales Tax Measure Update City Clerk Adams explained that In April, 2004, the City of Trinidad voters approved a ballot measure to impose a 1% transactions and use tax (sales tax) for a period of four years, which took effect on January 01, 2005 and ended on December 31, 2008.
In 2008, the voters approved a .75% sales tax, effective April 01, 2009 for four years. Collection of this additional tax was scheduled to end on March 31, 2013, but was put before the voters again in November 2012, and approved for four more years. In 2016 the voters approved by a 63% majority to extend the tax another four years, and then again with 73% approval in 2020.
The additional tax has generated an average of approximately $200,000 per year, representing roughly 22% of the total General Fund revenue budget, and supplements (significantly) the core services that City government provides; Police, Fire, Public Works, park & trail maintenance, and public facilities such as the Library, Park, and Town Hall.
In order to continue either the .75% tax add-on or implement a different tax, a measure will need to be included on the November 2024 ballot. There would be no preparatory costs assessed by the Board of Equalization in the event the current tax add-on is continued. If the tax add-on lapsed and was subsequently approved at a later date, the Board of Equalization will assess an implementation cost of approximately $22,000.
Deadlines: If the Council decides to proceed with a sales tax measure, the November election ballot will ask the voters to decide on 1) the Sales Tax Measure, and 2) selecting 2 Councilmembers. There are deadlines shared with the Sales Tax Election decision, and others that are independent from the Sales Tax election schedule:
FIRST DEADLINE: June 11, 2024 Council meeting:
1. Final decision to proceed or sunset the Sales Tax Increase must be made.
SECOND DEADLINE: July 09, 2024 Council meeting:
1. If a decision is reached to continue the sales tax increase, the wording must be drafted and approved in a resolution. Staff will draft the resolution based upon the decision reached at the June (or earlier) meeting and include it for adoption at the July (or earlier) Council meeting. 03-12-2024 City Council Meeting Minutes Page 5
2. A second resolution will be required at this meeting to approve requesting that the City and County consolidate their elections. Clerk will have the resolution prepared for discussion/approval at this meeting, regardless of the Sales Tax decision.
The next steps following the July Council meeting deadline will be advised after each benchmark decision is reached. The Clerk’s office will provide monthly updates and announcements to the Council regarding publishing deadlines and required notifications for both elements of the election.
Public comment included:
Barbara Kadelick – Trinidad Area Resident
40 year resident. Roughly 300 people’s vote affected the entire 95570 area. The State told us we would not be affected. This is taxation without representation. Everyone in the zip code should be able to vote and benefit from the tax. People outside the City have been harmed, and have no voice.
Tom Davies – Trinidad
Some of the figures presented are confusing. The deficit spending is concerning.
Patti Fleschner – Trinidad
In 2004 the Mayor went door to door pushing a 4-year tax. I support the tax and the citizens outside the City do benefit greatly from the tax. I also support annexation, and leaving the 4-year term in place.
Ladwig: We should have something on the City website showing the in-City streets and house numbers included by April or May.
City Clerk Adams noted that the tax is a general tax that can be used for expenses related to anything, such as CERT Ham Radio equipment improvements, that the neighboring community will benefit from.
Motion (Tuttle/West) to direct staff to prepare documentation for a ballot measure for the November election regarding the add-on .75% Sales Tax. Passed unanimously.
6. November 2024 City Election & Sales Tax Measure Update City Clerk Adams noted there are minor changes in scheduling, but this is informational only. No decision was made.
FUTURE AGENDA ITEMS
- Trinidad Area Resident Richard Johnson requested a budget item for Ham Radio equipment to benefit outside area residents during emergencies.
- Water Fund deficit spending plan
- Rancheria Interchange Meeting/Workshop
- Annexation Presentation
ADJOURNMENT: 8:30pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
04-09-2024 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, APRIL 09, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, Ladwig, West, and Breckenridge. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Administrative Assistant Anton Souza, and City Planner Trever Parker. Approximately (5) participants were present by video-conference, and (10) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION – No closed session
IV. RECONVENE TO OPEN SESSION – No closed session to report on.
V. APPROVAL OF THE AGENDA
Motion (West/Kelly) to approve the agenda as amended, pulling Consent 4 for discussion. Passed unanimously.
VI. APPROVAL OF MINUTES – 01-23-2024 ccpcstr, 02-13-2024 cc, 03-12-2024 cc Minutes will be reviewed in May.
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
West: Trails Committee meeting discussing signage options.
Ladwig: Nothing to report.
Breckenridge: First meeting of the Animal Control meeting will be held sometime later this month. Receiving emails from community residents with animal control concerns and suggestions.
Kelly: CERT trailer inventory performed last week. May 11 disaster preparedness training. Town Hall improvement project tasks/priorities being assessed.
Tuttle: RCEA Director Matthew Marshall resigning. Public attended to request RCEA to end biomass agreement.
VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet, including Water Tank and Pipeline project update, Axel Lindgren Memorial Trail update (hope to reopen in July with a re-routed base constructed by RCAA), and the Tsurai Management Team will address long-term planning at the next meeting. Water Plant filter media was ordered and will be installed soon as per the Chief Plant Operator’s recommendation. Celtic Fair will take place on May 18 in the Town Hall. Saunders Park playground proposal being considered. Councilmember Jack Tuttle coordinating the effort. In response to questions asked by resident Anita Thompson, the current contract Water Plant Operator invoice (Coleman Engineering) was $11,042 for March, and $1,486 was paid to Pacific Watershed Associates so far in 2024.
Mayor Kelly reminded the Council that the Trinidad Rancheria requested to be part of the Tsurai Management Team discussions.
HCSO Lt. McCall was unable to attend the meeting.
IX. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) No items from the floor presented.
X. CONSENT AGENDA
1. Staff Activity Report – March 2024
2. Financial Statements – February 2024
3. Law Enforcement Report – March 2024.
4. Award Contract for On-Call City Engineering Services to GHD. (Pulled for discussion) 04-09-2024 City Council Meeting Minutes Page 2
City Manager Naffah explained that Caltrans is currently reviewing the contract specifications to make sure it’s consistent with State policies. Council approval tonight will award the contract with an execution date subject to Caltrans acceptance.
Motion (West/Ladwig) to award the Contract for On-Call City Engineering Services to GHD. Passed unanimously.
5. Resolution 2024-04; Authorizing the Processing of a Consolidated Coastal Development Permit by the California Department of Transportation (CALTRANS) to Replace Drainage Infrastructure Along State Highway 101 In the City of Trinidad.
6. Approval of the Tristan Cole Subdivision & Coastal Development Permit (CDP-2023-09) to Split a 1.75 acre parcel on Berry Road into two parcels, Finding the Project Consistent with the City’s LCP and other Applicable Regulations.
7. Task Order Amendment 02 for the PW Trinidad HSIP Cycle 10 Project to Reference the new Professional Services Master Agreement Between GHD and the City of Trinidad Executed on April 09, 2024. (Contract will be executed upon Caltrans approval).
8. Task Order Amendment 01 for the 2022 STIP Trinity Street Rehabilitation Project to Reference the new Professional Services Master Agreement Between GHD and the City of Trinidad Executed on April 09, 2024.
Motion (Kelly/West) to approve the consent agenda as amended, pulling number 4 for discussion. Passed unanimously.
XI. DISCUSSION/ACTION AGENDA ITEMS
1. Proclaim May as National Bike Month to Promote Bicycles as a Means of Transportation and Recreation.
City Manager Naffah and Mayor Kelly introduced the Proclamation.
There was no public comment.
Ladwig: Encourage motorists to pay extra attention to cyclists in May.
Motion (West/Ladwig) to proclaim May as National Bike Month to Promote Bicycles as a Means of Transportation and Recreation, with the addition of a statement encouraging motorists to raise awareness of cyclists. Passed unanimously.
2. Discussion/Decision/Update on the Van Wycke Trail Temporary Closure and Progress Report on Actions Taken to Reopen the Trail and/or Develop Alternative Pedestrian Access.
City Planner Trever Parker summarized the staff report included in the meeting packet, starting with the history and past grant opportunities that failed to reach stakeholder consensus as to how to proceed. The Planning Commission approved the 6-month closure in 2020. The decision was appealed to the Coastal Commission.
The City’s hands were tied due to trail liability concerns, Covid, and Coastal Commission appeal hearing timeline. The Commission made it clear that trail access was significant and requested the City take steps to find solutions or alternatives. The City has considered repairs, realignment, and other alternatives. The area is culturally sensitive. The Yurok Tribe and TAS want the trail closed permanently. At this point the Coastal Commission staff supports trail closure but we’re unclear if the Commission concurs. The 6-month closure ran out in March. City Staff is looking into the option of moving the trail upslope, but nothing specific. Requesting the Council look into moving pedestrian traffic to Edwards Street and possibly enhancing pedestrian safety of that walkway. Parking study recently performed identified a high-number of resident encroachments into the public right of way.
Council questions included:
Tuttle: Support staff working with upslope landowners to secure an easement to re-route trail.
Breckenridge: Van Wycke and Edwards aren’t interchangeable. Parker stated the Commission had a desire to promote Edwards as the primary path, but Van Wycke as a “local” option.
West: Will the proposed work on Edwards this summer impact pedestrian access? Do we have any data on accidents or incidents occurring between vehicles and pedestrians on Edwards? Parker stated there are no reported incidents, but Edwards should be marked more clearly as it will be the primary access to the harbor. 04-09-2024 City Council Meeting Minutes Page 3
Kelly: Thanked the property owners for considering the upslope alternative. I recommend diverting pedestrian traffic to Edwards and keeping the existing trail informal or “local”. Boardwalk needs to be repaired. Crosswalks are coming this summer. In favor of a sidewalk on either side of Edwards. The Council is leaning in that direction.
Public comment included:
Tim Needham – Trinidad
Edwards Street resident, member of the Trails Committee. It is unanimous by the City residents to reopen the Van Wycke Trail. The only issue is whether the trail has cultural impacts to Tribal rights, which has not been proven. If it can be realigned, good, but under no circumstances should the City abandon the project before cultural impacts are proven.
Tristan Cole – Trinidad
Planning Commissioner in favor of keeping the trail open. Bothered by the City being strong-armed by the insurance company to close it. It’s rugged and passable. The City wants to avoid liability by closing the trail, but keeping it closed for the next few months exposes the City to liability as well. The City should stand up for itself and the well-being of the residents.
City Manager Naffah noted the JPA Insurer has exempted coverage to the City for anything that happens on the trail if it is left open.
Jacque Hostler-Carmeson – Trinidad Rancheria
Walked the trail with Rachel Sundberg, Rancheria THPO. Cultural proximity to the village was discussed, but we aren’t aware of any physical resources in that area. The Rancheria would also like to be part of the decision to open or close the trail as well.
Sherri Provolt – Yurok Tribe
The Yurok Tribe recommends keeping it closed. Trails are unstable. Drainage and erosion should be addressed as part of a long-term solution.
Ladwig: Coastal Resiliency Workshop held last month identified areas vulnerable to erosion.
Recommendations are being built in the plan to identify stable areas and intentionally re-route them.
Rachel Duclos – Trinidad
Adjacent property owner. The Coastal Commission “dinged” the City for not following procedure and opening the trail, but is apparently now considering permanent closure. I’m confused about how they feel about it. I want to see the trail open. Adjacent property owners share the concern for agreeing to something that would hurt the Tsurai and Yurok. We are also uncomfortable with trail users being invited upslope, on-grade with our back yards. The trail has always been lower, pushed back into the slope, which helps keep people on track as they pass by.
City Planner Parker noted there has been more of an emphasis on environmental justice and equity issues, and an evolution is happening with cultural resources and trails as well. Coastal Commission hasn’t put anything in writing. It’s an evolving topic.
Kelly: The Tsurai Ancestral Society expressed consideration of the “goat trail”, but that’s it, in a letter to the Planning Commission. All the construction options have been exhausted when the Van Wycke Trail (ATP) grant was abandoned.
Richard Johnson – Trinidad Area Resident, Planning Commissioner Tristan Cole explained the situation well. The minutes of the last PC meeting will illustrate the frustrations directed at the Commission. Having some illustrations about possible concepts with cost options to consider would make sense. Having a special meeting to focus on this topic would be helpful.
Council comments included:
Ladwig: Echoed Johnson’s comments, and suggested more specifics to be offered with staff recommendations to support each concept. This is a great first step tonight, but if something is ruled-out we need to drop it. It’s nice to have a historical perspective, but it would be helpful to hear directly from the properties directly affected.
If they don’t want it, let’s not talk about it again. There is a hesitancy to release any detailed cultural findings. 04-09-2024 City Council Meeting Minutes Page 4
Would like to see the reports so we know exactly what we’re dealing with? It would be nice for us to not have to rely on our memories as to why the project fell apart. We should get this in the public record for discussion.
Naffah recommended bringing back specific recommendations at the next meeting.
Kelly: The City abandoned a great opportunity to fund this project, or an alternative. The public felt it was overengineered. Now I’m getting frustrated to hear from the same (and new) people saying they want the trail. I’d like to hear more about the cultural sensitivities involved. I’m in favor of keeping the trail closed for legal reasons, but going forward we should agendize this topic or see it in the City Manager’s report until it’s determined to be not feasible anymore. Agree with Ladwig that the Council should be briefed on the history of the previous project.
City Manager agreed to bring information back regarding the previous project failure, and options moving forward.
3. Discussion/Decision regarding Resolution 2024-05; Ballot Opposing State of California Ballot Initiative 21-0042A1, The Taxpayer Protection and Government Accountability Act.
City Manager Naffah explained that according to the California Legislative Analyst's Office (LAO), the proposal would amend the State Constitution to change the rules for how the state and local governments can impose taxes, fees, and other charges. The LAO further states that local governments will generally face greater restrictions to raising revenue. By expanding the definition of taxes and restricting administrative changes to fees, the measure would make it somewhat harder for local governments to raise revenue. Consequently, future local tax and fee revenue could be lower than they would be otherwise. The extent to which revenues would be lower is unknown for local governments, but fees could be more impacted. The actual impact on local government revenue would depend on various factors, including future decisions by the courts, local governing bodies, and voters. Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative. Cal Cities is requesting local jurisdictions adopt a resolution to demonstrate how harmful this measure would be to local communities and the people of California.
There was no public or Council comment.
Motion (Ladwig/West) to approve Resolution 2024-05; Opposing voter Initiative No. 21-004A1 Taxpayer Protection and Government Accountability Act. Passed unanimously.
4. Discussion/Decision regarding Appointment of Members to the Animal Advisory Committee.
City Manager Naffah explained that the Animal Advisory Committee was set up in March 2024. Breckenridge was designated as Chair, and Jack Tuttle as Vice Chair. Three other positions are open. There are 3 interested individuals to serve on the committee; Jacque Hostler-Carmesin or designee (Rancheria) , Ted Pease (greater Trinidad area), Andrew Davis (local).
Motion (Kelly/Breckenridge) to appoint Jacque Hostler-Carmesin, Ted Pease, and Andrew Davis to serve on the Committee. Passed unanimously.
5. November 2024 City Election & Sales Tax Measure Update City Clerk Adams noted there are minor changes in scheduling, but this is informational only. No decision was made.
FUTURE AGENDA ITEMS
- General Plan (Kelly)
- Legal Issues in Closed Session (Ladwig)
- PWA Update with ongoing projects/research.
- Annexation – Invite LAFCO representative to speak to the Council.
ADJOURNMENT: 8:00pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
CONSENT AGENDA ITEM 1
SUPPORTING DOCUMENTATION ATTACHED
1. Staff Activity Report – April 2024
City Manager’s Report May 14th, 2024 Meeting
Water Tank and Pipeline Project:
If anyone has issues with the Water Tank and Pipeline Project construction, please contact Town Hall and we will notify GHD, the project managers; and Mercer-Frasier, the construction company. The bulk of the work has been completed on Edwards Street, and the area will be repaved once all work is complete on the street. The bulk of the work is on Westhaven Drive where water pipelines are being replaced between the water plant and the water tank site.
Ard Ri Celtic Fair Cancelled:
The Ard Ri Celtic Fair planned in Trinidad on May 18th has been cancelled. In order to be successful, the number of tickets for live entertainment would have drastically exceeded the Town Hall capacity. Hopefully the Fair can find a venue in the future that can adequately handle its planned capacity.
Trinidad Chamber of Commerce:
The Greater Trinidad Chamber of Commerce is planning their annual Taste of Trinidad to take place in Saunders Park on Summer Solstice Eve, June 20th from 5-7pm. A variety of local vendors will be present with food and drinks, and the band Ponies of Harmony will perform.
The next Chamber Mixer will take place at the Secret Beach Retreat STR on Stagecoach Drive on July 17th. The Chamber also awarded two $1,000 scholarships to former Trinidad School students as they are graduating from high school and heading to college. Congratulations to Flynn Creighton and Violet Miller-Wuest.
Axel Lindgren Memorial Trail (ALMT):
City Staff is working with the Tsurai Management Team (TMT) to address rerouting a portion of the trail and making temporary repairs in order to have the ALMT trail open in July. City Staff and members of the TMT will meet with the Redwood Coast Action Agency’s (RCAA) trails construction group on Tuesday the 14th to commence the rerouting of the base of the trail.
Once the short-term fix is complete, the trail will be reopened.
Van Wycke Trail:
City Staff will meet next week with the California Coastal Commission area staff to discuss the Van Wycke Trail (VWT) and Edwards Street improvements. At the last City Council meeting, neighboring property owners spoke regarding possibly moving the trail upslope. Subsequently, two property owners were in touch with the Tsurai Ancestral Society (TAS) and heard back that TAS and the Yurok Tribe maintain their opposition to the trail, even if moved upslope.
Trinidad Head Steps:
The City is pursing replacing the Trinidad Head wooden trail steps. Nineteen steps provide access to Trinidad Head from the beach parking lot. Redwood Community Action Agency’s Restoration Field Crew provided a bid to complete the project.
Water Plant:
In April, the water plant experienced large draws on the system, uncharacteristic of normal usage. Even in the early morning hours when usage should be extremely low, the plant was barely meeting demand. Our Chief Plant Operator (CPO) said it looked like a distribution line had failed and asked the Public Works crew to look for broken lines in the system. It took days to find it since the break was underground, but eventually the water bubbled through the blacktop on Scenic Drive. As a result, the water loss for April doubled to 41.8%, and constant alarms throughout the nights increased labor cost.
As reported last month, March experienced high turbidity due to the rains. This led to numerous alarms and extra monitoring throughout the day and night as the plant would fail and need attention before restarting. Since filters in the plant took a beating due to high turbidity, staff ordered and received new media (garnet and sand) to replace inside the roughing and polishing filters. The work replacing the media will be done the following weekend by water plant staff.
The cost for our CPO through Coleman Engineering to operate the water plant has been averaging $10,426 for the prior six months, but March and April increased due to the unforeseen circumstances identified above. The cost for operating the water plant in March was $14,628.50 and for April was $14.562.
I have identified a Math Professor from College of the Redwoods to assist our staff in understanding the complex math problems posed on the Water Treatment Operator examinations offered by the State Water Board. We are in the process of hiring one or two part-time employees who can work in Public Works and have shown an interest in the Water Plant and Distribution as well. Therefore, a number of Water and Public Works employees will benefit from this training in math.
STAFF REPORT SUPPLEMENTAL
Date: Tuesday, May 14, 2024
Background Info: The City of Trinidad is responding to the Governor’s Order calling on all Californians to do their part by reducing consumption.
Luffenholtz Creek flow readings are presented to the Council on an as-needed basis - during drought events or when requested. November, December, January, and once again February has delivered abundant amounts of rainfall, providing relief from stress-related drought on the watershed. With this in mind, the focus of these reports (during the wet season) will be to share and put into perspective how Trinidad’s water consumption metrics compare to those of recent years.
The amounts represent the total water sold, captured by 323 customer meters, measured in cubic feet (7.48 gallons = 1 cubic foot).
July 2019 282,552 cuft January 2020 199,348
July 2020 275,612 January 2021 161,379
July 2021 251,168 January 2022 189,201
July 2022 198,081 January 2023 154,543
July 2023 223,806 (16.37% Water Loss) January 2024 148,407 (23.67% Water Loss) August 2019 307,500 February 2020 155,015
August 2020 273,992 February 2021 178,545
August 2021 269,771 February 2022 154,634
August 2022 227,681 February 2023 136,626
August 2023 265,808 (17.03% Water Loss) February 2024 132,690 (11.33% Water Loss) September 2019 238,316 March 2020 164,854
September 2020 302,614 March 2021 187,607
September 2021 227,831 March 2022 184,103
September 2022 216,470 March 2023 152,813
September 2023 200,348 (15.99% Water Loss) March 2024 125,188 (19.75% Water Loss) October 2019 188,075 April 2020 199,450
October 2020 230,430 April 2021 192,287
October 2021 203,176 April 2022 173,115
October 2022 180,065 April 2023 145,504
October 2023 188,335 (22.08% Water Loss) April 2024 176,413 (40.81% Water Loss) November 2019 211,649 May 2019 236,444
November 2020 198,813 May 2020 183,368
November 2021 204,438 May 2021 242,529
November 2022 169,144 May 2022 154,634
November 2023 151,914 (22.06% Water Loss) May 2023 211,380 (23.13 Water Loss) December 2019 201,305 June 2019 219,764
December 2020 185,860 June 2020 240,055
December 2021 201,160 June 2021 269,087
December 2022 170,419 June 2022 233,692
December 2023 122,937 (27% Water Loss) June 2023 209,366 (13.63% Water Loss) Water sold in April was on-point historically, but a large leak on Scenic Drive resulted in a high loss. We will continue to monitor consumption each month and report this information (along with summary trends and analysis) to the Council for review, comparison, and questions at each meeting.
CONSENT AGENDA ITEM 2
SUPPORTING DOCUMENTATION ATTACHED
2. Financial Statements – March 2024
CONSENT AGENDA ITEM 3
SUPPORTING DOCUMENTATION ATTACHED
3. Law Enforcement Report – April 2024.
CONSENT AGENDA ITEM 4
SUPPORTING DOCUMENTATION ATTACHED
4. Project Completion and Certification Report of CAL OES, FEMA-4301-DR-CA 2017 Storm Damage Funding Claim.
STATE OF CALIFORNIA
CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES LIST OF AUTHORIZED AGENTSOES-FPD-012 (Rev. 09-2022)
RECOVERY DIRECTORATE
FINANCIAL PROCESSING DIVISION
List of Authorized Agents
Entity Name:
Cal OES ID:
• Enter each Authorized Agent (AA) as listed on the Designation of Applicant's Agent Resolution (Cal OES 130) for Non-StateAgencies or as it appears on the Signature Authority (Cal OES 130SA) for California State Agencies.• Check box to receive electronic copies of Cal OES Notification of Obligation and/or Payment packages. (Minimum 1 AA.) • Email addresses must use an email that shares the official entity URL.
Authorized Agent Name Authorized Agent Title Email Address Email
Pkg?
•An Approved Contact may be designated by an AA to request or receive information on grant payment status. Addthem by inputting their information below. (Ex. Accounting/Admin offices) Must use an official email URL.
Approved Contact Name Approved Contact Title Email Address Email
Pkg?
Please use a second page if more space is needed.
Rev. 09-2022 OES-FPD-012
DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES
BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)
THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , (Name of Applicant)
a public entity established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
- Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under - Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
- Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
- National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b) ((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 - California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2, Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12 That the , a public entity established under the
(Name of Applicant)
laws of the State of California, hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.
STATE OF CALIFORNIA
CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES
DESIGNATION OF APPLICANT'S AGENT RESOLUTION
NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)
RECOVERY DIRECTORATE
FINANCIAL PROCESSING DIVISION
Cal OES ID No: _____________
Rev. 10-2022 Page 1 of 4 OES-FPD-130
Please check the appropriate box below
This is a universal resolution and is effective for all open and future disasters/grants declared up to three (3) years following the date of approval.
This is a disaster/grant specific resolution and is effective for only disaster/grant number(s):
Passed and approved this __day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and
(Name of Applicant)
correct copy of a resolution passed and approved by the (Governing Body)
of the on the day of , 20 .
(Name of Applicant)
(Signature) (Title)
STATE OF CALIFORNIA
CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES
DESIGNATION OF APPLICANT'S AGENT RESOLUTION
NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)
RECOVERY DIRECTORATE
FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 2 of 4 OES-FPD-130
Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted resolution is older than three (3) years from the last date of approval, is invalid, or has not been submitted.
When completing the Cal OES Form 130, Applicants should fill in the blanks on pages 1 and 2. The blanks are to be filled in as follows:
Resolution Section:
Governing Body: This is the group responsible for appointing and approving the Authorized Agents.
Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.
Name of Applicant: The public entity established under the laws of the State of California.
Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.
Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the California Governor’s Office of Emergency Services regarding grants for which they have applied.
There are two ways of completing this section:
1. Titles Only: The titles of the Authorized Agents should be entered here, not their names. This allows the document to remain valid if an Authorized Agent leaves the position and is replaced by another individual. If “Titles Only” is the chosen method, this document must be accompanied by either a cover letter naming the Authorized Agents by name and title, or the Cal OES AA Names document. The supporting document can be completed by any authorized person within the Agency (e.g., administrative assistant, the Authorized Agent, secretary to the Director). It does not require the Governing Body’s signature.
2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document, or their title changes.
STATE OF CALIFORNIA
CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES
DESIGNATION OF APPLICANT'S AGENT RESOLUTION
NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)
RECOVERY DIRECTORATE
FINANCIAL PROCESSING DIVISION
Rev. 10-2022 OES-FPD-130 Page 3 of 4
Checking Universal or Disaster-Specific Box: A Universal resolution is effective for all past disasters and for those declared up to three (3) years following the date of approval. Upon expiration it is no longer effective for new disasters, but it remains in effect for disasters declared prior to expiration. It remains effective until the disaster goes through closeout unless it is superseded by a newer resolution.
Governing Body Representative: These are the names and titles of the approving Board Members.
Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents. A minimum of three (3) approving board members must be listed. If less than three are present, meeting minutes must be attached in order to verify a quorum was met.
Certification Section:
Name and Title: This is the individual in attendance who recorded the creation and approval of this resolution.
Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member. If a person holds two positions (such as City Manager and Secretary to the Board) and the City Manager is to be listed as an Authorized Agent, then that person could sign the document as Secretary to the Board (not City Manager) to eliminate “Self-Certification.”
STATE OF CALIFORNIA
CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES
DESIGNATION OF APPLICANT'S AGENT RESOLUTION
NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)
RECOVERY DIRECTORATE
FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 4 of 4 OES-FPD-130
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2x354x5yq7rx5v38n353y34767v3 Print Name of Authorized Agent: _________________________________________ Gabriel Adams SOP: Completing the P.4 Updated: 6/29/21
California Governor’s Office of Emergency Services 1
HOW TO COMPLETE THE P.4 - PROJECT COMPLETION AND
CERTIFICATION REPORT
The Project Completion and Certification Report (P.4) is a FEMA document that lists all Project Worksheets (PWs) obligated for each Subrecipient. The P.4 serves as the official closeout request from the Subrecipient to the Recipient.
PRE-POPULATED COLUMN HEADING DEFINITIONS
*Not to be changed by the Subrecipient*
Below is an example P.4:
A. PW# - The number FEMA assigned to each Project Worksheet (PW).
B. Amendment # - Amendments to a project are also known as Versions. For example, Amendment #0 on the P.4 shows on the PW as Version 0. A PW can have multiple Amendments or Versions. NOTE: Subrecipients should claim the total project amount on the latest approved Amendment #.
C. Approved Proj. Amount - The total approved dollar amount for each PW including any Amendments or Versions.
D. Cost Share – Indicates whether the total cost is inclusive of cost share calculations (N=No, Y=Yes). The local, state, and federal Cost Share percentages are not applied on the P.4 and will be factored in by Cal OES after FEMA obligates the PWs for funding by Cal OES.
E. Cat - Category of work (A-G) for which the PW was prepared.
F. Bundle. - Number of the supplemental funding package.
G. Projected Compl. Date - The approved work completion deadline for each PW. The initial date is six months from the declaration date for emergency work (Category A and B) and 18 months from the declaration date for permanent work (Category C through G). This date may include a subsequent approved Time Extension. Contact C. D. E. F. G. H. A. B. J. I. K. L. M.
SOP: Completing the P.4 Updated: 6/29/21
California Governor’s Office of Emergency Services 2
[email protected] to request a Time Extension for each PW as needed.
H. % Compl. At Insp. - The percentage of the work that was complete at the time of PW preparation.
I. Elig. Amount - Amount determined eligible at the time of PW obligation for each PW Amendment or Version.
TO BE FILLED OUT BY THE SUBRECIPIENT
Only populate the fields associated with PWs that the work is complete and ready to close. Large Projects can be closed individually. Small projects must all be closed together once the last Small Project is complete.
J. Work Done By - How the work was completed. Insert: Force Account, Contract, or Both.
K. Actual Date Completed - Enter the date on which the emergency work or permanent repairs were completed. Direct Administrative duties such as compiling documentation, billing, invoicing, etc. are not factored into the timeline of each Category A-G project completion date.
L. Amt. Claimed by Applicant - The amount actually incurred to complete the eligible scope of work for each PW. Deduct insurance proceeds received for each PW, if applicable. Do not factor in Cost Share %s. The amount to be entered is the 100% project costs.
M. Comments - This section is not required. It is generally used to clarify unique circumstances such as insurance proceeds were applied, the project was withdrawn, the project was partially completed, etc. It’s also used to reference enclosures or material that was submitted with the P.4.
FINAL STEPS
1) Ensure that all blank fields are filled for the applicable PWs being closed. 2) The certification, located on the last page of the P.4, must be signed and dated by the Authorized Agent. Print full name under the “Applicant’s Authorized Representative” signature block for identity verification. 3) Upload all documentation to support claimed costs to Grants Portal. 4) Send the signed P.4 to your ‘Recipient POC’ in Grants Portal. Below is the last page of the P.4:
CONSENT AGENDA ITEM 5
SUPPORTING DOCUMENTATION ATTACHED
5. Resolution 2024-06; Federal Functional Classification Map Change for Scenic Drive.
STAFF REPORT
Subject: FEDERAL FUNCTIONAL CLASSIFICATION MAP CHANGES FOR SCENIC DRIVE Discussion
The Federal Highway Administration (FHWA) identifies functional classification as a key item in transportation data. Streets and highways are grouped into classes according to the service they provide.
The California Road System (CRS) maps display functional classification which is used in determining Federal funding to maintain the roads. These maps are used in determining Federal funding to maintain the roads. Federal funds for a number of federal highway programs are apportioned and allocated to the local agencies based on the public road mileage in each jurisdiction.
The FHWA groups roadways into seven classifications:
1. Interstate
2. Other Freeways and Expressways
3. Other Principal Arterial
4. Minor Arterial
5. Major Collector
6. Minor Collector
7. Local
Incorporated cities are responsible for reviewing the California Road System (CRS) maps maintained by the California Department of Transportation (Caltrans) and initiating requests for changes to the functional classification of local streets and roads under their jurisdiction. The procedure for changing the functional classification of a street on the CRS maps involves seeking concurrence from Humboldt County Association of Governments (HCAOG) and submitting a request form to Caltrans with a City Council resolution approving the submittal.
In reviewing the City’s current roadway network and comparing it to the CRS maps, it is apparent that changes to the CRS map for Scenic Drive should be made to put the City in a better position to obtain Federal funding in the future. The recommended changes are summarized in the following table:
Street
Name
From To Existing
Classification
Proposed
Classification
Scenic Drive Main Street City Limits (approx. 850’
north of Langford Road) 6-Minor Collector 5-Major Collector Scenic Drive Langford Road/City
Limits
City Limits (approx. 1800’
south of Langford Road) 6-Minor Collector 5-Major Collector Scenic Drive is a main thoroughfare that connects US 101 (classified as a Principal Arterial) to Trinidad Rancheria, and number public beaches, including but not limited to Luffenholtz Beach Park, Huda Point Beach/Camel Rock Park, and Moonstone Beach County Park. Therefore changing their classifications to Major Collector is consistent with FHWA guidelines.
Recommended Action
Adopt a resolution requesting specific changes to the Federal Functional Classification Map.
Attachments:
1. Resolution
2. Exhibit A – Functional Classification Change Request Form
3. Exhibit B – Caltrans Functional Classification CRS Map Showing Proposed Changes Resolution 2024-06 1
Trinidad City Hall Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
707-677-0223
RESOLUTION NO. 2024-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TRINIDAD APPROVING THE
SUBMITTAL OF A FUNCTIONAL CLASSIFICATION CHANGE FOR LOCAL STREETS AND
ROADS TO STATE OF CALIFORNIA, DEPARTMENT OF TRANSPORTATION WHEREAS, incorporated cities are responsible for initiating requests for changes to the functional classification of streets and roads under their jurisdiction: and WHEREAS, the City of Trinidad receives State and Federal road improvement and maintenance funding based on street and road designation; and
WHEREAS, said Functional Classification Change, as presented in Exhibit A. has been reviewed and examined by the City Council of the City of Trinidad.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Trinidad that it does hereby approve the submittal of a Functional Classification Change for local streets and roads to the State of California, Department of Transportation.
PASSED AND ADOPTED by the Trinidad City Council at a regular meeting held on the 14th day of May 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Attest:
______________________ _____________________
Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
Functional Classification Change Request Form
Please refer to page two for specific data entry for each column. CRS Map NumberCoordinateCT DistrictCountyJurisdiction
Change/
New/
Delete Road From To
(From)
Class
(To)
New
Class
Length
(mi)
Number of
Through
Lanes AADT
Submitted by:
Date:
CONSENT AGENDA ITEM 6
SUPPORTING DOCUMENTATION ATTACHED
6. Resolution 2024-07; Request November General Election Consolidation with the County of Humboldt.
City of Trinidad: Resolution 2024-07 Page 1 of 1
TRINIDAD CITY HALL Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
(707) 677-0223
RESOLUTION 2024-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TRINIDAD, CALIFORNIA REQUESTING
THE BOARD OF SUPERVISORS OF THE COUNTY OF HUMBOLDT TO RENDER SPECIFIED
SERVICES TO THE CITY RELATING TO THE CONDUCT OF A GENERAL MUNICPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 05, 2024.
.
WHEREAS, a General Municipal Election is to be held in the City of Trinidad, California on November 05, 2024; and
WHEREAS, in the course of conduct of the election it is necessary for the City to request services of the County; and
WHEREAS, all necessary expenses in performing these services shall be paid by the City of Trinidad;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TRINIDAD, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That pursuant to the provisions of Section 10002 of the Elections Code of the State of California, the City Council requests the Board of Supervisors of the County to permit the County Election Department to prepare and furnish to the City for use in conducting the election the computer record of the names and address of all eligible registered voters in the City in order that the City may print labels to be attached to self-mailer sample ballot pamphlets; and will also furnish to the City printed indices of the voters to be used by the precinct board at the polling place; and will make available to the City additional election equipment and assistance according to state law.
SECTION 2. That the City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill.
SECTION 3. That the City Clerk is directed to forward without delay to the Board of Supervisors and to the County Election Department, each a certified copy of this Resolution.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Trinidad on this 10th Day of May, 2022.
I, the undersigned, hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Trinidad by the following roll call vote:
Ayes:
Noes:
Absent:
Abstain:
Attest:
______________________ _____________________
Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
CONSENT AGENDA ITEM 7
SUPPORTING DOCUMENTATION ATTACHED
7. Agreement with Shawn Worth for Volunteer Fire Chief Services.
CITY OF TRINIDAD VOLUNTEER FIRE CHIEF AGREEMENT Page 1 of 5
CITY OF TRINIDAD VOLUNTEER FIRE CHIEF
AGREEMENT
This City of Trinidad Volunteer Fire Chief Agreement is made and entered into this _______ day of May, 2024 (this “Agreement”), by and between the City of Trinidad (hereinafter “City”) and Shawn Worth (hereinafter "Volunteer Fire Chief").
RECITALS
A. WHEREAS, the City wishes to utilize the services of a Volunteer Fire Chief; B. WHEREAS, the Volunteer Fire Chief is experienced and skilled in the practice of fire incident response, and is willing to provide services on a volunteer basis to the City, consistent with its policies and procedures, and the laws of the State of California for and on behalf of the City;
C. WHEREAS, in accord with United States Federal Labor Standards Act and implementing regulations published at 29 C.F.R. §§ 553.101 and 553.103, an individual is a volunteer, not a Volunteer Fire Chief of a public agency, when the individual meets the following criteria:
1. The individual performs hours of service for a public agency for civic, charitable or humanitarian reasons, without promise, expectation or receipt of compensation for services rendered. Although a volunteer can receive no compensation, a volunteer can be paid expenses, reasonable benefits or a nominal fee to perform such services;
2. The individual must offer services freely and without pressure or coercion, direct or implied, from an employer; and
3. The individual must not otherwise be employed by the same public agency to perform the same type of services as those for which the individual proposes to volunteer.
D. WHEREAS, the Volunteer Fire Chief meets the criteria of a “volunteer” as recited in Recital Paragraph C, above.
NOW, THEREFORE, incorporation the foregoing Recitals and in consideration of the mutual covenants herein contained, the parties hereto agree as follows:
AGREEMENT
SECTION 1. DUTIES.
A. Under direction of the City Manager, the Volunteer Fire Chief is responsible for the protection of life and property by preventing and eliminating fire hazards and by controlling and extinguishing fires, and supervising the provision of emergency response services, including responding to calls for service and logging and tracking statistics.
CITY OF TRINIDAD VOLUNTEER FIRE CHIEF AGREEMENT Page 2 of 5 B. Volunteer Fire Chief will seek to enforce the laws and ordinances relating to the prevention and extinguishing of fires and the handling of potentially dangerous combustibles and explosives and to investigate and report to law enforcement officials all cases when there is reason to believe that any fire is the result of a crime or that a crime has been committed therewith.
C. Volunteer Fire Chief will maintain in efficient and operable condition, fire fighting and fire prevention systems and facilities and to coordinate with the City in the acquisition of new equipment or apparatus.
D. Volunteer Fire Chief will seek to recruit, coordinate and train such volunteers as required.
E. Volunteer Fire Chief shall represent the City as its Fire Chief at local and regional meetings, and participate in community events such as parades, the Trinidad to Clam Beach Run or other encroachment permitted activities that require emergency oversight.
F. Volunteer Fire Chief shall update the City Manager with statistics, activity and the needs of the Department when requested.
G. Volunteer Fire Chief shall perform such other legal and reasonable duties as prescribed by the laws of the State of California as the City Manager may direct and assign from time-to-time.
SECTION 2. TERM.
A. Subject to the City’s right(s) to terminate this Agreement early in accord with Section 2.B., below, this Agreement shall commence on ____________, 2024, and shall terminate on ______________________.
B. Pursuant to the written policies of the City, and the job description for this position, the parties acknowledge and agree that the Volunteer Fire Chief serves at the pleasure of the City; that there exists no contract for or right to employment; either expressed or implied, with the sole exception of the provisions contained herein; that the City may terminate the retention of the Volunteer Fire Chief with or without cause; and that upon such termination, with or without cause, Volunteer Fire Chief’s sole remedy under the laws of the State of California, the laws of these United States.
C. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Volunteer Fire Chief to resign at any time from his position with City.
SECTION 3. REQUIREMENTS
Volunteer Fire Chief is certifying that he has had previous training and experience as a fireman, subject to California Government Code § 38611. Subject to all terms of this Agreement, Volunteer Fire Chief is additionally required to maintain a clean driving record, acceptable license, and emergency service certifications. A breach of this agreement or of the requirements listed in this Section 3 shall be grounds for suspension, demotion or termination by the City, pursuant to Section CITY OF TRINIDAD VOLUNTEER FIRE CHIEF AGREEMENT Page 3 of 5 4, below. Without limitation on the forgoing, conviction of a felony shall be grounds for immediate termination.
SECTION 4. HOURS OF WORK.
It is recognized that the position of Volunteer Fire Chief may call for unusual work hours and is exempt from wage and hour laws requiring the payment of overtime wages. It is agreed the Volunteer Fire Chief will set his own work hours while devoting the necessary amount of time and energy needed to faithfully perform the duties of Volunteer Fire Chief under this Agreement.
SECTION 5. COMPENSATION.
A. City shall pay the Volunteer Fire Chief for his services rendered pursuant hereto a voluntary stipend in the amount of Five Hundred Dollars ($500.00) per month, payable on the first day of each calendar month during the term of Volunteer Fire Chief’s service (the “Monthly Stipend”).
B. City and Volunteer Fire Chief acknowledge that the Monthly Stipend is “nominal” in value, and constitutes a “nominal fee” for the Volunteer Fire Chief’s services as contemplated by FLSA regulation 29 C.F.R. § 533.106(e).
SECTION 6: INDEMNIFICATION.
A. In addition to that required under state and local law, City shall defend, save harmless, and indemnify Volunteer Fire Chief against any tort, professional liability claim or demand or other legal action, arising out of an alleged act or omission occurring in the performance of Volunteer Fire Chief’s duties as Volunteer Fire Chief. City may compromise and settle any such claims or disputes and pay the amount of any settlement or judgment rendered thereon. Any liabilities associated with the gross negligence, harassment or intentional acts or omissions of the Volunteer Fire Chief are excluded from this indemnity obligation.
B. City and Volunteer Fire Chief agree that they will, at all times, assist each other in defending any litigation involving City, or Volunteer Fire Chief’s duties with City. The parties shall each comply with the requirements of Section 825 of the Government Code or its successor, in implementing this Section.
SECTION 7. WORK RELATED EXPENSES AND REIMBURSEMENT
A. Volunteer Fire Chief shall be paid for the maintenance, repair and replacement of a full insignia uniform at a rate of $_______ per calendar quarter, beginning with a payment of $______ upon commencement of this Agreement. This allowance is recognized to cover the additional cost of a uniform over civilian dress and shall be used strictly for the maintenance, repair, and purchase of uniforms. City agrees to reimburse the Volunteer Fire Chief such verifiable work related out-of-pocket expenses incurred by the Volunteer Fire Chief as approved by the City Manager. Volunteer Fire Chief shall submit an itemization schedule of his out-of-pocket expenses to the City Manager in writing in the form of a purchase order for payment.
CITY OF TRINIDAD VOLUNTEER FIRE CHIEF AGREEMENT Page 4 of 5 B. City shall bear the full cost of any fidelity or other bonds required of the Volunteer Fire Chief under any law or ordinance.
C. City agrees to budget and pay for the professional licensing and continued education of Volunteer Fire Chief for training.
D. City hereby agrees to budget for and to pay the travel and subsistence expenses of Volunteer Fire Chief for official and professional travel of Volunteer Fire Chief while on City business, provided that the City Manager has first approved and authorized said travel and training expenses.
E. All fees and expenses paid for Volunteer Fire Chief’s services shall be subject to the reimbursement restrictions published in FLSA regulations, at 29 C.F.R. § 533.106.
SECTION 8. NOTICES
Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:
CITY VOLUNTEER FIRE CHIEF
City of Trinidad Shawn Worth
Trinidad City Hall _________________________
409 Trinity Street _________________________
Trinidad, CA 95570 _________________________
Alternatively, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written in the course of transmission in the United States Postal Service.
SECTION 10. GENERAL PROVISIONS.
A. The text herein shall constitute the entire Agreement between the parties, and shall supersede any prior representations or agreements between the parties.
B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Volunteer Fire Chief.
C. This Agreement shall become effective upon signing by each of the parties hereto.
Electronic and/or facsimile signatures shall be deemed to constitute originals.
D. If any provisions, or any portion thereof, contained in this Agreement are held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.
E. This Agreement may be executed in multiple separate counterparts, each of which shall be deemed to be an original, and all of which shall constitute a single agreement. Signatures CITY OF TRINIDAD VOLUNTEER FIRE CHIEF AGREEMENT Page 5 of 5 of the Parties transmitted by email, DocuSign or other electronic means shall be deemed to be their original signatures for all legal and other purposes.
IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed on its behalf by its City Manager, and the Volunteer Fire Chief has signed and executed this Agreement, the day and year first above written.
CITY OF TRINIDAD:
By:_______________________________________ Date: ______________ Eli Naffah, City Manager
VOLUNTEER FIRE CHIEF:
By:_______________________________________ Date: ______________ Shawn Worth
A GUIDE FOR FIRE CHIEFS AND
COMMUNITY LEADERS
MANAGING VOLUNTEER FIREFIGHTERS
FOR FLSA COMPLIANCE:
www.iafc.org 1
Letter from the IAFC
Dear Colleagues:
For nearly two decades, fire chiefs have been confused by differing interpretations of the Fair Labor Standards Act (FLSA). To bring order to this issue, the IAFC sought for and gained from the Department of Labor (DOL) a series of letter rulings to clearly define the requirements that individuals must meet to qualify as a volunteer firefighter under FLSA regulations.
The IAFC has published this brochure as a guide for fire chiefs and community leaders to better manage volunteer firefighters for FLSA compliance. The IAFC believes this will be helpful for the leaders of America’s fire service.
Sincerely,
Chief James B. Harmes
President (2006-2007)
Copyright 2006©, International Association of Fire Chiefs and Wiley Rein & Fielding LLP. All rights reserved.
No part of this publication may be produced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright owners. 2 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 3 Letter from the VCOS
For 10 years, the Volunteer and Combination Officers Section (VCOS) has been actively involved with our parent organization, the International Association of Fire Chiefs, in working with the U.S. Department of Labor to clear up a number of issues that have caused the American volunteer fire service concern. Over that time, a genuine need surfaced to obtain administrative changes and clarifications to the Fair Labor Standards Act (FLSA) of 1938 at the federal level because of conflicting regional and local interpretations and how these provisions affected the use of volunteers in local fire departments. Often, local administrators and legal counsel decided to allow or not allow certain groups of individuals to volunteer based upon community opinion or restrictive actions, constantly mindful of potential litigation.
The FLSA situations were complicated with the introduction of pay per call, stipends and other forms of reimbursement to individual volunteer firefighters. It became clear that the definition of “volunteer firefighter” 20 years ago is not the same as it is today. Times have changed, the demand on the volunteer has changed and—in a way—the definition of the new “volunteer firefighter” has changed as well.
The changes outlined in this document will allow you to better manage your departments and will improve your ability to provide quality service to your communities. With these changes comes the responsibility for fire chiefs to ensure that their departments are FLSA-compliant and are accurately accounting for volunteer reimbursement within the 20-percent bright line.
During the last 10 years, our board and legislative members handled many concerns about local volunteer restrictions and their impact on community fire protection. A number of those situations were emotionally difficult for the individuals forced to resign as volunteers because of the conflicting interpretations. For those individuals, this information could not come fast enough. I hope this effort will allow you to return as a viable and productive community volunteer.
This decade of hard work by VCOS and the IAFC is an example of the VCOS commitment to improving the national atmosphere for volunteers through federal legislation, interpretation and initiatives; educational opportunities for fire department managers who lead volunteer organizations; enhanced educational requirements for volunteers; and a renewed emphasis on the safety and survival of those who dedicate themselves to the well-being of others.
We understand that local community protection depends on the experience, expertise and tenure of your emergency providers and know these changes will enhance your efforts to retain quality volunteers.
Chief Tim Wall, Chairman
Volunteer and Combination Officers Section (VCOS) of the International Association of Fire Chiefs
Chief Gary Scott
Campbell County Fire Department
[email protected] / [email protected]
877.253.1084 - Fire Station 1
307.680.0460 - cell phone
Letter from the Author
Managing Volunteer Firefighters for FLSA Compliance:
A Guide for Fire Chiefs and Community Leaders
By Garen E. Dodge, Esq. and Maria L. Mullarkey, Esq.
Managing Volunteer Firefighters for FLSA Compliance: A Guide for Fire Chiefs and Community Leaders is a joint publication of the International Association of Fire Chiefs (IAFC), and its Volunteer Chief Officers Section, and the law firm of Wiley Rein & Fielding LLP.
The International Association of Fire Chiefs, organized in 1873, is dedicated to the advancement of the fire service.
The IAFC’s mission statement is:
To provide career and volunteer chiefs, chief fire officers and managers of emergency service organizations throughout the international community with information, education, services and representation to enhance their professionalism and capabilities to protect citizens from the devastation of fire, environmental, natural and man-made emergencies.
This analysis is designed to provide accurate and authoritative information regarding compliance issues under the FLSA that are of concern to IAFC’s members. It is distributed with the understanding that neither the authors, nor IAFC, is engaged in rendering legal or other professional advice, and that the topics discussed herein are subject to legislative, judicial, or regulatory change. If legal advice is required based on particularized facts, IAFC members should seek guidance from their jurisdiction or fire department’s attorney. If you have any suggestions or comments regarding this analysis, please contact:
Garen E. Dodge, Esq.
Wiley Rein & Fielding LLP
1776 K Street, NW
Washington, DC 20006
Phone: (202) 719-7388
[email protected]
1 Copyright 2006©, International Association of Fire Chiefs and Wiley Rein & Fielding LLP. All rights reserved. No part of this publication may be produced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright owners.
www.iafc.org 5
MANAGING VOLUNTEER FIREFIGHTERS FOR FLSA
COMPLIANCE: A GUIDE FOR FIRE CHIEFS AND
COMMUNITY LEADERS
Table of Contents
CHAPTER 1. THE FLSA VOLUNTEER EXEMPTION........................................................................................... 7 CHAPTER 2. PAYMENTS TO VOLUNTEERS........................................................................................................8 CHAPTER 3. DO VOLUNTEER SERVICES CONSTITUTE THE “SAME TYPE OF SERVICES”?................. 12 CHAPTER 4. DO TWO ENTITIES CONSTITUTE THE “SAME PUBLIC AGENCY”?..................................... 13 CHAPTER 5. USE OF PAID LEAVE AND COMPENSATORY LEAVE..............................................................14 CHAPTER 6. PAYMENT OF WAGES BY SEPARATE AGENCY.......................................................................15 CHAPTER 7. SPECIAL DETAIL EXCEPTION......................................................................................................16 CHAPTER 8. WORKING WITH THE UNION TO ENSURE GOOD RELATIONS............................................ 17 CHAPTER 9. TAXATION OF PAYMENTS AND BENEFITS ..............................................................................18 CHAPTER 10. CHECKLIST FOR MANAGING VOLUNTEER FIREFIGHTERS................................................. 19 CHAPTER 11. CONCLUSION..................................................................................................................................20 CHAPTER 12. SOURCES OF ADDITIONAL INFORMATION.............................................................................21 6 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 7
INTRODUCTION
Recognizing the value of public volunteer efforts, Congress sought to define the requirements that an individual must meet to qualify as a bona fide volunteer in the 1985 amendments to the Fair Labor Standards Act (FLSA).
Although Congress desired to promote volunteerism, it also incorporated safeguards to help prevent abuse of FLSA minimum wage and overtime requirements. Specifically, Section 3(e)(4)(A) of the FLSA provides that an individual cannot “volunteer” during off-hours to perform the same services he or she performs during regular employment for the same public agency.
The International Association of Fire Chiefs (IAFC) recognized - over a decade ago - that there was confusion across the land about the application of the FLSA rules as they apply to volunteer firefighters. Chief fire officers have struggled with the FLSA since the law’s application to public agencies in 1985, and some of the main points of contention have been in the area of volunteerism. The FLSA proved difficult to apply to the realities faced by public safety employers who use volunteer firefighters and law enforcement personnel to deliver services to their communities.
Fire departments have been given conflicting interpretations from different Department of Labor (DOL) administrators and field offices when applying the FLSA standards to volunteers. To make matters worse, fire chiefs often sought advice from their city or county attorney only to find that the advice was so conservative and risk averse as to make it difficult or impossible to retain the number of volunteers needed for service to that community. Simply put, because they did not wish to trigger a costly lawsuit over murky and inconsistent rules, many city and county attorneys said “no, chief, you can’t do that.”
To address this issue, we pleaded our case to Congress. In 1998, a subcommittee in the House of Representatives’ Labor Committee held a hearing to air the problems that existed with the Department of Labor rules and regulations that implement the FLSA regarding volunteer firefighters. After the hearing, the subcommittee, working closely with the IAFC, sought clarification on numerous interpretations dealing with issues such as the use of paid and compensatory leave, the “two-hatter” issue, and when fees or other payments to volunteers qualify as a “nominal fee.” This latter nominal fee question took considerable time to answer. What amount of fees can a jurisdiction provide a volunteer firefighter without endangering his or her volunteer status? After three years of reviewing this specific question, DOL has just released a bright line test that states: generally an amount not exceeding 20 percent of the total compensation that the employer would pay to employ a full-time firefighter would be deemed a “nominal fee,” and therefore would not endanger the firefighter’s volunteer status.
Although DOL did not clarify whether fire departments must use the compensation for a specified level of firefighter (for example, entry level or senior) when calculating fees based on the 20 percent rule, DOL stated that fire departments should make a good faith determination based on their own payroll information.
Needless to say, we are extremely pleased – first that we finally got the ruling we requested and that it is favorable for the volunteer fire service. To ensure that all fire chiefs who manage volunteer firefighters will be aware of these (and other) DOL rulings, the IAFC, working with the Volunteer and Combination Chief Officers Section (VCOS), published this manual for fire chiefs and community leaders that explain the new rulings in the context of managing a fire department. In an effort to ease some of the confusion in applying the FLSA volunteer exemption, this manual summarizes applicable DOL guidance on FLSA requirements for volunteer firefighters.
CHAPTER 1.
THE FLSA VOLUNTEER EXEMPTION
Under the FLSA, public employers are obligated to pay employees at least the minimum wage and overtime compensation. The FLSA, however, exempts public employers from paying minimum wage and overtime to individuals who qualify as “volunteers” motivated to contribute services for civic, charitable or humanitarian reasons. An individual who performs services for a public agency qualifies as a volunteer, if:
• the individual receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered; and • such services are not the same type of services which the individual is employed to perform for the same public agency. 2
If an individual meets the above criteria for volunteer status, he or she will not be considered an employee covered by FLSA minimum wage and overtime provisions, and the public employer is not obligated to compensate the individual for hours of volunteer services performed.
A bona fide volunteer may perform, without compensation:
• Different work for the same agency
• Same or similar work for a separate and independent agency • Different work for a separate and independent agency
2 29 U.S.C. § 203(e)(4)(A) (2006).
8 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 9 CHAPTER 2.
PAYMENTS TO VOLUNTEERS
In accordance with DOL regulations, public employers may pay volunteers expenses, reasonable benefits, a nominal fee, or any combination thereof, without jeopardizing their volunteer status.3 Public employers must be careful, however, to not exceed these permissible payments to volunteers. If payments to volunteers rise to the level of “compensation” for services rendered, the individual will no longer qualify as a bona fide volunteer, but will be deemed an employee for purposes of FLSA minimum wage and overtime liability. Ultimately, DOL will evaluate “the total amount of payments made (expenses, benefits, fees) in the context of the economic realities of the particular situation” to determine whether the individual loses volunteer status by virtue of payments made by the public agency. 4
Expenses
Public employers can reimburse volunteers for approximate, out-of-pocket expenses incurred by volunteers incidental to providing services for the public agency,5 which include the following:
• Meals
• Transportation
• Uniforms and Related Equipment
• Tuition and Other Costs Involved in Attending Classes Related to Volunteer Services • Books, Supplies or Other Materials for Training
Reasonable Benefits
A public employer does not risk the status of volunteers by providing reasonable benefits to volunteers,6
including:
• Liability Insurance
• Health Insurance
• Life Insurance
• Disability Insurance
• Workers’ Compensation
• Pension Plans
• Length of Service Awards
• Personal Property Tax Relief 7
Nominal Fee
Although public employers can pay a nominal fee to volunteers, the fee must not be a substitute for wages and must not be tied to productivity. 8 Public employers who compensate volunteers with more than a nominal fee likely will create an employment relationship, thereby destroying the volunteer status of the individuals. DOL has indicated that fire departments may consider the following factors when providing nominal fees to bona fide volunteers:
• Distance traveled
• Time and effort expended
• Whether the volunteer has agreed to be available around-the-clock or only during certain specified time periods
• Whether the volunteer provides services as needed or throughout the year 9 In addition, DOL provided the following additional guidance in various opinion letters:
• Per Call Basis – Although generally the amount of a nominal fee may not be tied to productivity and may not vary based on time spent on the activity, DOL’s regulations specify that the payment of a nominal amount on a per-call basis to volunteer firefighters is acceptable. In its most recent letter, DOL noted that “compensation ‘per call’ or other similar bases may be acceptable so long as they may fairly be characterized as tied to the volunteer’s sacrifice rather than productivity-based compensation.”10 • Monthly or Annual Stipend – DOL has stated that the payment of a nominal monthly or annual stipend to an individual who volunteers on a year-round basis is allowed.11 • Hourly Rate – DOL has determined that payment to volunteer firefighters on a per hour basis destroys bona fide volunteer status and creates an employment relationship. This type of payment is akin to hourly wages based on productivity. 12
The 20 Percent Rule
In the August 7, 2006 opinion letter, DOL finally provided definitive clarification as to what amounts will qualify as a nominal fee. IAFC sought this opinion letter to elicit a bright-line test to assist fire departments in defining the line between what constitutes a nominal fee to volunteers and what amounts to compensation.
In its November 10, 2005 opinion letter, DOL stated that a public school employee could receive a nominal fee to volunteer as a coach or advisor for extracurricular activities so long as the fee does not exceed 20 percent of what the public school would otherwise pay to hire a full-time coach or advisor.13 Extending application of the 20 percent rule to volunteer firefighters, in the August 7, 2006 opinion letter, DOL explained that “generally, an amount not exceeding 20 percent of the total compensation that the employer would pay to a full-time firefighter for performing comparable services would be deemed nominal.”14 Further, DOL indicated that – so long as the fee is 20 percent or less of total compensation for comparable services – DOL will be less likely to focus on whether the fee is paid on an annual, monthly or daily basis.
Fire departments can apply the 20 percent rule to evaluate whether a fee paid to a volunteer firefighters is a nominal amount based on market information, including:
• Compensation paid to a full-time firefighter on the fire department’s payroll • Information from neighboring jurisdictions, the state or the nation (including data from DOL’s Bureau of Labor Statistics, www.bls.gov) DOL did not clarify whether fire departments must use the compensation for a specified level of firefighter (for example, entry level or advanced) when calculating fees based on the 20 percent rule. DOL explained that the information necessary to make this calculation generally is within the knowledge and control of fire departments, and thus, the actual determination should be made by fire departments in good faith based on “[a]ny full-time firefighter a particular fire department has on its payroll.” Although DOL’s guidance on this issue is unclear, it is possible that fire departments may vary the level of the firefighter used as the benchmark for the 20 percent rule to correspond to the level of the volunteer firefighter receiving the fee. For example, a fire department may use 10 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 11 the salary paid to a full-time beginner firefighter as a benchmark to determine whether a fee paid to a volunteer firefighter for his first year of service is nominal.
Under the 20 percent rule, for example, if a volunteer firefighter staffs four shifts during a month, a nominal fee should not exceed 20 percent of what it would cost to employ a full-time firefighter to staff the equivalent of four shifts.
Examples:
A county fire department pays $50,000 to hire a full-time firefighter for one year. The fire department pays an annual stipend of $9,500 to a volunteer firefighter to perform the same services. This payment would constitute a nominal fee under the 20 percent rule.
A county fire department pays $50,000 to hire a full-time firefighter for one year. The fire department pays an annual stipend of $15,000 and life insurance to a volunteer firefighter to perform the same services. This payment would not constitute a nominal fee under the 20 percent rule.
Responding to a series of hypotheticals posed by IAFC, DOL found that the following payments may qualify as nominal fees:
* Although DOL found that a $15,000 annual payment may qualify as nominal under the 20 percent rule, DOL also observed that “it is unlikely that 3,000 hours of service (50+ hours per week) is ‘volunteering’ rather than employment.” 15 If a volunteer is compensated annually for a comparable, high level of hours, DOL likely will determine that a full-time employment relationship exists.
* * DOL reminded public employers that a nominal fee must not vary depending on the productivity of the volunteer or the amount of time spent on volunteer activities. Although it did not definitively answer whether a fire department can increase the yearly, monthly or per shift payment to volunteers for every year the volunteer staffs a requisite number of shifts, DOL noted that this may constitute impermissible “compensation via a seniority or productivity system based on services rendered.” 16
Fire departments should use the 20 percent rule to determine if a payment to volunteer firefighters constitutes a nominal fee. Remember that the 20 percent rule does not apply to expenses and reasonable benefits. Even if a payment constitutes a nominal fee under the 20 percent rule, however, this payment must be considered in totality with other expenses or benefits received by volunteer firefighters to determine if the entire amount of payments precludes volunteer status under the “economic realities” test.
Example:
A volunteer firefighter receives an annual stipend of $8,000, reimbursement for the cost of transportation, uniforms and training, and payments by the fire department for health and life insurance. The fire department should determine whether the $8,000 stipend exceeds 20 percent of what it would cost to employ a full-time firefighter to perform the same services. The fire department does not have to evaluate whether the reimbursement of expenses or provision of insurance benefits are 20 percent of the amount of expenses and insurance received by full-time firefighters performing similar services.
Conclusion : Total Payments
Step 1: Evaluate whether each specific payment to volunteers qualify as either (1) expenses; (2) reasonable benefit; or (2) a nominal fee.
Step 2: The nominal fee cannot exceed the total compensation paid to a full-time firefighter for performing comparable services.
Step 3: Analyze the entire package of payments made to volunteers “in the context of the economic realities of the particular situation” to determine whether furnishing these payments results in loss of volunteer status.
CHAPTER 2. continued
3 29 C.F.R. § 553.104(a) (2006)., 4
Id. at § 553.106(f)., 5 Id. at § 553.106(b)-(c)., 6 Id. at § 553.106(d)., 7 DOL has found that provision of personal property tax relief in the amount of $1,500 annually during the term of volunteer service constitutes a permissible reasonable benefit. DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006).,8 29 C.F.R. § 553.106(e) (2006)., 9 Id., 10 DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006)., 11 Id., 12 DOL, Wage and Hour Division Opinion Letter (July 7, 1999)., 13 DOL, Wage and Hour Division Opinion Letter (Nov. 10, 2005)., 14 DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006)., 15 Id., 16 Id.
AMOUNT OF PAYMENT REQUIREMENTS ADDITIONAL
PAYMENTS
AVERAGE WORKED
(MINIMUM)
1) $1,200 per year
Regardless of number of
shifts or amount of time spent
responding to calls
n/a
24 shifts and/or 60
hours responding to
calls per year
2) $100 per month
Regardless of number of
shifts or amount of time spent
responding to calls
n/a
4 shifts and/or 8
hours responding to
calls per month
3) $100 per month Minimum of 2 shifts and/or
5 hours responding to calls
$25 for each additional
shift over 4 and/or
each additional 2.5 hours
responding to calls
over 12 hours
n/a
4) $25 per 4-hour
block of time
Regardless of the amount of
time spent at the station house
or responding to calls
n/a n/a
5) $20 per shift
Regardless of the length of
shift or amount of time spent
responding to calls
n/a
6 hour shift and/or 2
hours responding to
calls per shift
6) $25 Minimum of 8 hours per shift
and/or 2.5 hours responding to calls
$15 per shift that exceeds
8 hours and/or 5 or more
hours responding to calls
n/a
7) $15,000 annual fee n/a n/a
3,000 hours waiting
and responding to
calls per year*
8) $20 per shift
Regardless of the length of
shift or amount of time spent
responding to calls
Fee increases by $1 per
shift for each year with a
minimum of 12 shifts**
n/a
12 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 13 CHAPTER 3.
DO VOLUNTEER SERVICES CONSTITUTE THE “SAME TYPE OF SERVICES”? The FLSA “does not permit an individual to perform hours of volunteer service for a public agency when such hours involve the same type of services which the individual is employed to perform for the same public agency.”17 DOL regulations define “same type of services” as “similar or identical services.”18 Whether volunteer services constitute the same type of services is determined on a case-by-case basis, considering:
• The occupational classification of the employee’s paid position in comparison to his or her volunteer position in the Dictionary of Occupational Titles or on DOL’s O*NET system, www.doleta.gov/Programs/onet/. • Whether the volunteer services are closely related to the actual duties performed by and responsibilities assigned to the employee during regular employment19 Cross-Trained Firefighter/EMT
In its most recent opinion letter, DOL did not provide a definitive answer in response to whether a firefighter cross-trained and licensed as an EMT/Paramedic can qualify as a bona fide volunteer EMT/Paramedic for the same agency.20 In an August 19, 1999 opinion letter, however, DOL concluded that a city firefighter cannot volunteer as a firefighter/EMS provider for the same city.21
Firefighter/Police
In its most recent opinion letter, DOL confirmed that police and firefighters perform a different type of service, and thus, a police officer employed by a county police department can also volunteer as a firefighter for the same county’s fire and rescue department.22 In a statement favorable to the chiefs, DOL indicated that “merely responding to the same emergencies, such as traffic accidents and fire calls, or acting as a medical first responder on occasion will typically not change the inherent differences in the two occupations.” 23 Fire Marshall/Firefighter
DOL concluded that a full-time paid Fire Marshall cannot be a volunteer firefighter with the city because the volunteer service is the “same type of service” for which he is paid by the same employer and is closely related to the actual duties of the Fire Marshall. 24
Mechanic/Firefighter
DOL determined that “serving as a mechanic and serving as a firefighter do not involve the same type of services, absent evidence to the contrary,” and thus, an individual employed as mechanic could serve as a volunteer firefighter for the same agency. 25 Detention Deputy/Law Enforcement Deputy
DOL decided that employees of a county sheriff’s office in the detention department could not volunteer off-duty in the law enforcement department because the work involves the “same type of services.”26 Civilian Communications Specialist/Firefighter
DOL concluded that an individual employed as a civilian communications specialist with a city fire and rescue department may volunteer as a firefighter for the same agency. DOL stated that employees who engage in civilian support activities, such as dispatchers, alarm operators, apparatus and equipment repair and maintenance workers, clerks and stenographers, do not perform the same type of services as firefighters.27 CHAPTER 4.
DO TWO ENTITIES CONSTITUTE THE “SAME PUBLIC AGENCY”?
An individual who is a paid employee of a public agency cannot also be an unpaid volunteer for the same agency while performing the same type of services that he is employed to perform. DOL determines whether two entities constitute the “same public agency” on a case-by-case basis by examining whether the two entities:28 • Have separate payroll and retirement systems
• Have the authority to sue and be sued in their own name • Have separate hiring and other employment practices
• Are treated separately under State law
• Are treated separately by the Census Bureau
• Have separate budget and funding authorities
• Have independent authority to make employment decisions • Have authority to hire and compensate personnel
• Have limited integration and day-to-day control of operations over each other Separate Public Agency
If analysis of these factors indicates that the public agencies are separate entities, then an employee of one agency can volunteer to provide the same or similar services as performed in their regular employment for the separate agency.
Same Public Agency
If analysis of these factors indicates that the public agencies are not separate entities, then an employee of one agency cannot volunteer to provide the same or similar services as performed for in their regular employment for the other entity. Such an arrangement would create a joint employment situation.
Mutual Aid Agreements
DOL regulations state that an agreement between two agencies for mutual aid does not change the otherwise volunteer character of services performed by employees of such agencies.29 For example: An individual employed as a paid firefighter with County A may volunteer as a firefighter with County B, where County A and County B have a mutual aid agreement (even though the firefighter may be called upon to respond to a call in County A while volunteering with County B).
17 29 C.F.R. § 553.102(a) (2006)., 18 Id. at § 553.103(a)., 19 Id., 20 DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006)., 21 DOL, Wage and Hour Division Opinion Letter (Aug. 19, 1999). 22 DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006)., 23 Id., 24 DOL, Wage and Hour Division Opinion Letter (Sept. 3, 1999)., 25 DOL, Wage and Hour Division Opinion Letter (Apr. 14, 2003). See Chapter 5 for discussion on leave and overtime issues for other governmental employees., 26 DOL, Wage and Hour Division Opinion Letter (Oct. 29, 2004)., 27 DOL, Wage and Hour Division Opinion Letter (Jul. 7, 1999). 28 29 C.F.R. § 553.102(b) (2006)., 29 Id. at § 553.105. 14 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 15 CHAPTER 5.
USE OF PAID LEAVE AND COMPENSATORY LEAVE
If a Bona Fide Volunteer for a Separate Agency
If the employee is a bona fide volunteer for a separate public agency, the employing agency may provide paid personal leave or dock the employee’s compensatory time during volunteer calls without jeopardizing the individual’s volunteer status with the separate agency.30 Further, the volunteer hours worked for the separate agency would not be compensable time worked for the employer and, thus, would not be counted by the employer when computing overtime.
For example, if a firefighter in County A is required to use paid personal leave or accrued compensatory time for his volunteer work as a firefighter with City B, a separate agency, his status as a bona fide volunteer with City B is not jeopardized. Further, the volunteer hours worked for City B would not be compensable time worked for County A.
A bona fide volunteer firefighter can also be paid wages by his “non firefighter” employer while serving as a volunteer firefighter for a separate public agency during normal work hours, as long as such pay does not come from the separate public agency receiving the volunteer services. If the employer pays wages for time volunteered during normal work hours, however, the volunteer hours would be compensable hours that must be counted by the employer for purposes of computing overtime.
If a Bona Fide Volunteer for the Same Agency
If an employee is a bona fide volunteer for the same agency, the employee may substitute paid personal leave earned—which the employee may use as he sees fit—for time spent performing volunteer activities without jeopardizing his status as a bona fide volunteer.31 Further, the time spent outside the employee’s regular work day performing volunteer services would not be compensable time worked for the employer and would not be counted when computing overtime. 32
For example, if a mechanic employed by County A fire department uses paid personal leave for his volunteer work as a firefighter with County A fire department, his status as a bona fide volunteer firefighter is not jeopardized. The time spent by the mechanic on volunteer fire calls outside the regular work day would not be compensable time worked for County A.
An employee who volunteers different services for the same public agency cannot be paid wages by the agency for the volunteer services, however, as this will prevent the employee from qualifying as a bona fide volunteer. For example, if County A pays a full-time mechanic wages for hours worked as a firefighter for the same county, the county employs the individual as both a full-time mechanic and a part-time firefighter. Therefore, the individual would not be allowed to volunteer additional hours as a firefighter because of FLSA’s prohibition on volunteering for the same agency to perform the same type of services he is employed to perform.
If NOT a Bona Fide Volunteer
If the employee is not a bona fide volunteer because he is performing the same type of services for the same public agency, the hours spent performing the same services for which he is employed are not “time off,” but instead are compensable and should be counted when computing overtime. 33 In such case, the public employer may not dock the employee’s compensatory time to cover the wages due.
CHAPTER 6.
PAYMENT OF WAGES BY SEPARATE AGENCY
DOL indicated that a public employer can pay wages to an employee for volunteer hours with a separate agency.34 For example, if a firefighter in County A is allowed to cease his usual duties during the workday to respond as a volunteer firefighter to City B’s call, the firefighter can be paid for his normal work hours by County A without losing his volunteer status with City B. As explained in Chapter 5, the employee’s use of paid personal leave or accrued compensatory time does not transform the volunteer hours into compensable time. If the public employer pays wages for time volunteered during normal work hours, however, the volunteer hours are considered compensable hours for that employer that must be counted for purposes of overtime compensation.35 Time spent volunteering outside regular work hours is not compensable time.
30 DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006); DOL, Wage and Hour Division Opinion Letter (Apr. 14, 2003)., 31 DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006)., 32 DOL, Wage and Hour Division Opinion Letter (Apr. 14, 2003)., 33 Id. 34 DOL, Wage and Hour Division Opinion Letter (Aug. 7, 2006); DOL, Wage and Hour Division Opinion Letter (Apr. 14, 2003)., 35 Id. 16 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 17 CHAPTER 7.
SPECIAL DETAIL EXCEPTION
Although not applicable to volunteers, the “special detail” exception applies to public fire protection and law enforcement employees who, at their own option, work special detail for a separate and independent employer performing related duties. If a public employee voluntarily agrees to work special detail “by a separate or independent employer in fire protection, law enforcement, or related activities,” the public agency can exclude these hours when calculating hours worked for purposes of overtime compensation. 36 In an April 28, 2006 opinion letter, DOL responded to an inquiry by a city regarding its law enforcement officers who perform off-duty security detail at a municipal coliseum for a third-party. DOL concluded that because the public employees perform the off-duty work at their own option and because the city and third-party contractors are separate employers, the off-duty work hours should not be counted for the city’s overtime obligation, and the fact that the city pays workers’ compensation for the third-party work does not alter this conclusion. 37 DOL considers similar factors to determine whether the employers are separate and independent as applied to determine whether a volunteer provides services for the same agency, including whether the agencies operate a separate payroll system, maintain a separate retirement system, have a separate budget and have the authority to sue and be sued in their own name.
CHAPTER 8.
WORKING WITH THE UNION TO ENSURE GOOD RELATIONS
If a union is present, it is important to:
m Review your state/local laws on volunteers if any
m Check the union contract to see if volunteers are covered m Meet with union representative to discuss the use of volunteers m Make sure volunteers are not provided more than 20% provided to career firefighters m If a new approach is needed, see if union contract can be reopened on the issue of volunteers m If contract cannot be reopened, propose changes when contract expires 36 29 C.F.R. § 553.227 (2006)., 37 DOL, Wage and Hour Division Opinion Letter (Apr. 28, 2006). 18 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 19 CHAPTER 9.
TAXATION OF PAYMENTS AND BENEFITS
Fire departments may have questions about the taxation of payments made to volunteer firefighters that are not addressed in the FLSA guidance, for example, whether compensation paid to volunteers is subject to FICA (Social Security and Medicare) withholding. The attached tax supplement provides a discussion of FICA taxation of volunteer firefighters and tax treatment of amounts applied to dependent care and medical accounts. Comprehensive treatment of tax issues are beyond the scope of this analysis. If you have tax questions, it is important to seek out the advice of qualified tax counsel.
CHAPTER 10.
CHECKLIST FOR MANAGING VOLUNTEER FIREFIGHTERS
As a reminder:
q Does the collective bargaining agreement have restrictions on career firefighters from volunteering during off-duty hours?
q Does the volunteer firefighter perform the same type of services for another agency? q Does the volunteer firefighter perform work for the same public agency? q Does the volunteer firefighter receive any payments?
m Does the payment qualify as expenses?
m Does the payment qualify as a reasonable benefit?
m Does the payment qualify as a nominal fee? Is it 20 percent or less of what a full-time firefighter would be paid to perform comparable services? 20 Managing Volunteer Firefighters for FLSA Compliance: a Guide for Fire Chiefs and Commnity Leaders www.iafc.org 21 CHAPTER 11.
CONCLUSION
q Volunteer firefighters must not be paid compensation, but can be paid expenses, reasonable benefits and a nominal fee that does not exceed 20 percent of what it would cost to otherwise provide the volunteer services rendered.
q Paid firefighters cannot volunteer the same services for the same public agency for which they are employed.
q Paid firefighters can volunteer the same services for a separate and independent public agency. q Paid firefighters can be paid by their employer for personal time off or docked compensatory time for volunteer hours worked for a separate and independent public agency without jeopardizing volunteer status with the separate agency. The employer should not count these hours as compensable time.
q Paid firefighters can be paid wages for by their employer for volunteer hours worked during the regular workday for a separate and independent public agency without jeopardizing volunteer status with the separate agency. The employer should count these hours as compensable time.
CHAPTER 12.
SOURCES OF ADDITIONAL INFORMATION
We hope this brochure is a helpful resource for managing volunteer firefighters in compliance with FLSA standards. If further questions arise as you assess your volunteer programs, the following resources may be of help to you.
Department of Labor Web Site. The Department of Labor’s home page is located at: http://www.dol.gov.
This web site includes a link to DOL’s guidance information on the Fair Labor Standards Act, including the text of the statute and regulations.
Department of Labor Wage and Hour Opinion Letters. The Department of Labor’s Wage and Hour opinion letters responding to FLSA issues can be accessed at: http://www.dol.gov/esa/whd/opinion/opinion.htm.
Employment & Labor Legal Counsel. If you are unsure of how the FLSA volunteer standards apply in your particular situation, you may want to contact legal counsel to assist in ensuring that your volunteer program meets the legal requirements discussed in this brochure. If you would like assistance, please contact Garen E. Dodge, Esq. at (202) 719-7388 or [email protected].
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___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ International Association of Fire Chiefs
Volunteer and Combination Officers Section
4025 Fair Ridge Drive, Suite 300
Fairfax, VA 22033
703/273-0911
www.iafc.org
U.S. Department of Labor
Employment Standards Administration
Wage and Hour Division
Washington, D.C. 20210
FLSA2006-28
August 7, 2006
Dear Name*:
I am writing in reply to your Association’s letter requesting guidance under the Fair Labor Standards Act (FLSA) on numerous hypothetical questions concerning “same type of services,” “same public agency,” and “nominal fee,” as applied to individuals volunteering for, or employed by, a public agency.
The FLSA recognizes the generosity and public benefits of volunteering, and does not seek to pose unnecessary obstacles to bona fide volunteer efforts for charitable and public purposes. In this spirit, in enacting the 1985 FLSA Amendments, Congress sought to ensure that true volunteer activities are neither impeded nor discouraged. Congress, however, also wanted to minimize the potential for abuse or manipulation of the FLSA’s minimum wage and overtime requirements in “volunteer” situations.
Section 3(e)(4)(A) of the FLSA and 29 C.F.R. §§ 553.101 and 553.103 (copies enclosed) indicate that an individual is a volunteer, not an employee of a public agency, when the individual meets the following criteria:
1. Performs hours of service for a public agency for civic, charitable or humanitarian reasons, without promise, expectation or receipt of compensation for services rendered.
Although a volunteer can receive no compensation, a volunteer can be paid expenses, reasonable benefits or a nominal fee to perform such services;
2. Offers services freely and without pressure or coercion, direct or implied, from an employer; and
3. Is not otherwise employed by the same public agency to perform the same type of services as those for which the individual proposes to volunteer.
Please be assured that this Administration fully supports volunteerism and is committed to working with organizations like yours to ensure that citizens are able to volunteer freely their services for charitable and public purposes consistent with the law.
Your letter posits factual circumstances that test whether volunteer status is jeopardized. The first series of questions -- questions 1 through 9 -- concerns payments that a public agency may provide a volunteer. We will address these questions under Scenario 1, below. The second series of questions -- questions 11, 14 and 15 -- goes to the issue of providing the “same type of services” to the “same public agency.”1 We will address these questions under Scenario 2, below.
Scenario 1
1. An individual serves as a volunteer firefighter for County A.
2. County A provides the volunteer with some monetary payment (or tax relief) calculated on a yearly, monthly, shift, or on-call basis.
3. The payment (or tax relief) varies based on factors such as the amount of time spent on the activities, length of service, number of calls, and number of shifts, but is not linked to expenses incurred by the volunteer.
Each question asks whether the particular payment negates volunteer status.
Section 3(e)(4)(A)(i) and the implementing regulations at 29 C.F.R. § 553.106 (copy enclosed) provide that a volunteer may only be paid expenses, reasonable benefits, or a nominal fee, or any combination thereof, without losing volunteer status. Examples of permissible expenses or benefit payments are described as a payment for expenses, such as dry cleaning; an allowance for a requirement, such as a uniform; reimbursement for an out-of-pocket expense, such as transportation; a payment to provide materials, such as supplies; or a payment for benefits, such as participation in group insurance plans. See 29 C.F.R. § 553.106(a)-(d).
Section 553.106(e) discusses what constitutes a nominal fee and the various factors to consider in determining whether a stipend is nominal. In the preamble to this provision of the regulation, the Department stated, “whether a specific amount is ‘nominal’ depends on the economic realities of the situation and that no guidelines on specific amounts applicable to all (or even most) possible situations can be provided.” See 52 Fed. Reg. 2012, at 2021 (Jan. 16, 1987) (copy enclosed).
While the statute and the implementing regulations do not define what constitutes a “nominal fee,” the regulations provide guidance for determining whether a fee is nominal and permissible. If a fee is not nominal, then the individual does not qualify as a volunteer and is considered an employee who is covered by the FLSA minimum wage and overtime provisions.
The factors to examine in making a determination of whether an amount is nominal include, but are not limited to: (1) the distance traveled and the time or effort required of a volunteer; (2) the availability -- limited or unlimited -- of a volunteer to provide services; and (3) the basis -- as needed or throughout the year -- on which a volunteer agrees to perform services. See 29 C.F.R. § 553.106(e). These factors focus upon whether the fee is actually more analogous to a payment for services or recompense for something performed and, hence, not nominal.
Thus,
1 In a conversation with our staff subsequent to your letter, you withdrew original questions 7, 8, 10, 12, and 13 and replaced them with two new questions. These new questions are reproduced here as new questions 7 and 8.
There are no longer any questions 10, 12, or 13.
to the extent that payments are tied to productivity (e.g., payment of hourly wages for services rendered), are similar to “piece rates” or are comparable to “production bonuses,” there is a greater likelihood that such fees are not nominal. However, as noted in the preamble to section 553.106(e), almost 30 percent of all volunteer firefighters are paid a small fee for each fire call to which they respond, and the rule was not intended to invalidate that model. See 52 Fed. Reg. 2012, at 2021. Moreover, consistent with the discussion of factors to be considered (e.g., distance traveled, time and effort expended, around-the-clock versus limited availability, throughout the year versus upon request), compensation “per call” or other similar bases may be acceptable so long as they may fairly be characterized as tied to the volunteer’s sacrifice rather than productivity-based compensation. Accordingly, nothing in the statutory language would directly preclude the payment of nominal per call or even per shift fees to volunteer firefighters as section 553.106(e) specifically provides that a nominal fee can be paid on a “per call” or similar basis for volunteer firefighters.
Please also see Wage and Hour Opinion Letter FLSA2005-51 (Nov. 10, 2005) (copy enclosed) that contains a recent discussion of the Department’s consideration of what payment constitutes a nominal fee for determining an individual’s volunteer status. That opinion letter expounds upon the “economic realities” test in the context of school systems and those volunteering by assisting with extra-curricular activities, such as coaching sports or sponsoring various clubs.
Specifically, this letter states that when a public agency employee volunteers as a coach or extracurricular advisor, the Department will presume the fee paid is nominal as long as the fee does not exceed 20 percent of what the public agency would otherwise pay to hire a full-time coach or extracurricular advisor for the same services. This 20 percent rule is derived from the FLSA and implementing regulations. See Wage and Hour Opinion Letter FLSA2005-51 (“The FLSA and the implementing regulations use a 20 percent test to assess whether something is insubstantial with regard to prohibited driving on public roadways by employees who are 17 years of age.”). A willingness to volunteer for 20 percent of the prevailing wage for the job is also a likely indication of the spirit of volunteerism contemplated by the 1985 amendments to the FLSA. We believe this interpretation of “nominal fee” applies equally in the context of firefighters.
Finally, the regulations instruct that any nominal fees must be considered in the context of any other benefits or expenses paid and the economic reality of the particular situation. Indeed, section 553.106(f) sets forth the “economic realities” test, which specifically provides that the determination of whether the expenses, benefits or fees would preclude an individual from qualifying as a volunteer under the FLSA must be made by examining the total amount of payments in the context of the economic realities of a particular situation. As your letter is silent on whether any other expenses and/or benefits are paid, the Department assumes there are no other benefits or expenses beyond the payments described in the questions.
The probative facts as we see them for each hypothetical question are set out below:
Q.1 The volunteer is paid $1,200 per year regardless of the number of shifts or amount of time spent responding to calls. On average the volunteer staffs a minimum of 24 shifts and/or spends a minimum of 60 hours responding to calls annually.
Q.2 The volunteer is paid $100.00 per month regardless of the number of shifts or amount of time spent responding to calls. On average the volunteer staffs a minimum of 4 shifts and/or spends a minimum of 8 hours responding to calls monthly.
Q.3 The volunteer is paid $100.00 per month so long as the volunteer staffs a minimum of 2 shifts and/or spends a minimum of 5 hours responding to calls during the month. Additional payments of $25.00 are made for each additional shift over 4 during the month and/or for every
2.5 hours spent responding to calls exceeding 12 hours during the month.
Q.4 The volunteer is paid $25.00 (or $30.00 or $40.00) for each four-hour block of time regardless of the actual amount of time below four hours spent at the station house or responding to calls.
Q.5 The volunteer is paid $20.00 for each shift regardless of the length of the shift or the time spent responding to calls. On average, the volunteer works a 6 hour shift and/or spends 2 hours per shift responding to calls.
Q.6 The volunteer is paid $25.00 if the volunteer staffs a shift of at least 8 hours and/or spends
2.5 hours responding to calls. An additional $15.00 per shift is paid if the shift exceeds 8 hours or responds to calls over 5 hours during a single shift.
Q.7 An individual serves as a volunteer firefighter in Indiana. Indiana Code 36-8-12 defines “nominal” as an annual payment of not more than twenty thousand dollars ($20,000). The volunteer is paid an annual fee of $15,000. On average, the volunteer spends at least 3,000 hours per year waiting and responding to calls.2
Q.8 The volunteer is paid a stipend of $20.00 per shift regardless of the length of the shift or the amount of time spent responding to calls during the shift. For every consecutive year of volunteer service in which the volunteer has staffed not less than 12 shifts per year, the volunteer is granted an additional stipend of $1.00 per shift regardless of the time spent responding to calls.
Q.9 The volunteer is provided with $1,500.00 personal property tax relief annually during the term of their volunteer service.
These questions, with the exception of question 9, specify payments to be made to the volunteer per shift, month, or year and the average number of shifts, calls, and/or hours worked by the volunteer. In some instances, additional payments are made if additional time above the required minimum is spent on shift or responding to calls. In other instances, payment increases depending on the number of years volunteered. Assuming there are no other payments or benefits provided and no other facts that bear on the question (out-of-pocket expenses, travel costs, uniform maintenance, etc.), these payments may qualify as nominal fees under § 553.106.
2 In a conversation with our staff subsequent to your letter, you withdrew questions 7, 8, 10, 12, and 13 and replaced them with two new questions. These new questions are reproduced here as new questions 7 and 8.
Generally, a key factor in determining if a payment is “substitute for compensation” or “tied to productivity” is “whether the amount of the fee varies as the particular individual spends more or less time engaged in the volunteer activities.” Wage and Hour Opinion Letter FLSA2005-
51. If the amount varies, it may be indicative of a substitute for compensation or tied to productivity and therefore not nominal. See id.; see also 29 C.F.R. § 553.106(e). However, as noted above, there is a specific allowance for volunteer firefighters to be paid on a “per call” or similar basis consistent with certain factors denoting the relative sacrifice of the volunteer. See 29 C.F.R. § 553.106(e). Due to this specific allowance, and assuming there are no other facts showing that the payments in your hypothetical situations are a substitute for compensation or tied to productivity, it still must be determined if the payments are nominal amounts.
Applying the recent interpretation of “nominal fee” in Wage and Hour Opinion Letter FLSA2005-51, generally an amount not exceeding 20 percent of the total compensation that the employer would pay to employ a full-time firefighter for performing comparable services would be deemed nominal. Thus, in questions 1 through 6, a nominal fee could be 20 percent or less of the total compensation that County A would pay for the same services. Assuming the fee is determined to be nominal, it is less relevant whether it is paid on an annual, monthly or daily basis.3 As was stated in Wage and Hour Opinion Letter FLSA2005-51, the market information necessary to complete this good faith determination is generally within your members’ knowledge and control. Any full-time firefighter a particular fire department has on its payroll would be a good benchmark for this calculation. Absent such information, a fire department or similar entity may look to information from neighboring jurisdictions, the state, or ultimately, the nation, including data from the Department of Labor, Bureau of Labor Statistics. Thus, for example, if a volunteer staffs three shifts during a month, a nominal fee should not exceed 20 percent of what it would cost to employ a full-time firefighter to staff a period to cover the equivalent of the three shifts.
Question 7 involves $15,000 per year for volunteers who on average spend at least 3,000 hours waiting for or responding to calls. Assuming the payment does not vary depending on the productivity of the volunteer or whether the volunteer spends more or less time on volunteer activities, the payment of $15,000 might qualify as “nominal” under the 20 percent rule if County A would otherwise need to pay $75,000 or more to hire a full-time firefighter to perform the same services. However, it is unlikely that 3,000 hours of service (50+ hours per week) is “volunteering” rather than employment. Indeed, without knowing additional facts and circumstances about the economic realities of the locality, a payment of $15,000 for 3,000 hours of volunteer services arguably constitutes compensation for a full-time job rather than a “nominal fee” for volunteering.
Similarly, Question 8 involves increased payment for every year the volunteer staffs a requisite number of shifts. Without additional facts, we are unable to say definitively whether this increased payment represents compensation via a seniority or productivity system based on
3 The Department has withdrawn Wage and Hour Opinion Letters September 17, 1999, April 2, 1992, and July 15, 1988 to the extent they are inconsistent with the interpretation of nominal fee in this opinion.
services rendered, and is thus not permitted, or, applying the test described above, is a “nominal fee” for volunteerism.
Question 9, involving tax relief of $1,500 on personal property taxes, would appear to constitute a permissible “reasonable benefit” and thus need not be evaluated as a “nominal fee.” Provision of such a benefit will not, in and of itself, preclude bona fide volunteer status.
Scenario 2
You have also posed questions similar to those raised in your letter of September 16, 2002, which we responded to in April 2003, that concern whether the volunteer services are for the same public agency and/or are the same type of services the volunteer is employed by that public agency to provide. See Wage and Hour Opinion Letter FLSA2003-2 (Apr. 14, 2003) (copy enclosed). Questions 11, 14, and 15 all concern these issues. We assume for each Question that the person is providing volunteer services for civic, charitable or humanitarian purposes and without any expectation or receipt of compensation and the services are volunteered without any pressure or coercion from an employer. You posit the following facts:
1. The individual in question is employed by County A, a public agency.
2. The individual seeks to volunteer either for County A, a public agency, or a joint powers board funded by both City A and County A.
In order to determine whether a person is a bona fide volunteer under section 3(e) of the FLSA (copy enclosed), if the volunteer is employed by a public agency it is necessary to assess whether the volunteer is employed by the same agency for whom the services are provided and the services provided are the same services the volunteer is employed to provide. As noted in Wage and Hour Opinion Letter FLSA2003-2, if an individual is not employed by the same public agency (what you call the “who is an employer” question), then it is not necessary to examine the nature of the services provided (what you call the “what are the same type of services” question). Similarly, if the individual does not perform the same type of services for the public agency, there is no need to examine the relationship of the agency receiving the individual’s volunteer services to the individual’s employer.
As stated in our prior opinion letter, whether two entities of a local government constitute the same public agency can only be determined on a case-by-case basis. Among the factors to be considered is whether the Census of Governments issued by the Bureau of the Census, U.S.
Department of Commerce, treats the two agencies separately for statistical purposes. See 29 C.F.R. § 553.102 (copy enclosed). In addition to the Census of Governments, the attached Wage and Hour Opinion Letter FLSA2002-3 (June 7, 2002) provides a framework for making such a determination and identifies factors that are relevant to the determination. As indicated in Wage and Hour Opinion Letter FLSA2003-2, there are a number of relevant factors to consider, such as: whether the two agencies have separate payroll and retirement systems; whether they both have the authority to sue and be sued in their own names; whether they have separate hiring and other employment practices; and how they are treated under state law. See also Wage and Hour Opinion Letter FLSA2006-13 (Apr. 28, 2006) (City firefighters may
volunteer to County Fire Protection District that has separately elected Board; separate funding sources; separate payroll, benefits and retirement systems; can levy taxes and exercise eminent domain; can sue and be sued; and is treated separately by the Census) (copy enclosed).
If those other factors demonstrate that the agencies should be treated as separate entities, or if the Census of Governments treats the agencies described in questions 11, 14 and 15 as separate agencies, then our opinion is that they are not the same employer and an employee of one could volunteer to provide services of any nature for the other public agency.
Even if the public agency for which the person seeks to volunteer is the volunteer’s employer, volunteer services may still be provided so long as the services are not the same type of services the volunteer is employed to provide. For instance, a firefighter may not volunteer as a firefighter for the same public agency. On the other hand, an employee of the city parks department may offer to volunteer as a firefighter, or a police officer may volunteer to referee in a basketball league sponsored by his employing city. See 29 C.F.R. § 553.103.
Much like the determination of “same public agency,” whether the service the volunteer seeks to provide is the “same type of services” the individual is employed to perform can only be determined after “consideration of all the facts and circumstances in a particular case[.]” See 29 C.F.R. § 553.103(a). The regulations define “same type of services” to mean similar or identical services. Id. Among the facts considered is how the volunteered services and the services that the volunteer is employed to provide are classified by the three digit categories of occupations in the Dictionary of Occupational Titles. Further, in addition to the Dictionary of Occupational Titles, one must also consider whether the volunteer services are “closely related to the actual duties performed by or responsibilities assigned to the employee.” Id. An additional source of information about occupational categories is found in O*NET, available at http://www.doleta.gov/programs/onet/. The O*NET system, created and maintained by the Department of Labor’s Employment and Training Administration, is a unique, powerful source for continually updated information on skill requirements and occupational characteristics.
With these qualifications in mind, we will now address in turn each question under Scenario 2.
Q.11 An individual is employed as a mechanic by the County A Parks Department. He also volunteers as a firefighter for the County Fire and Rescue Department, a joint powers board funded by County A and City A. He is granted paid leave while responding to calls as a volunteer.
A.11 This scenario resembles that outlined in your September 16, 2002, letter which the Department answered in Wage and Hour Opinion Letter FLSA2003-2. As discussed more fully therein, the determination of whether the mechanic is a bona fide volunteer turns in part on whether the County A Parks Department and the County A Fire and Rescue Department are the same public agency. We refer you to the discussion of the factors to consider in making this determination as outlined in Wage and Hour Opinion Letter FLSA2003-2.
Assuming the County A Parks Department and the Fire and Rescue Department are separate agencies, the fact that the Parks Department allowed its employee to cease his usual duties to
respond to fire calls and paid the employee for his normal work hours spent on such calls, would not make the mechanic an employee of the Fire and Rescue Department. However, such special leave would be compensable hours worked for the Parks Department and would have to be counted when computing total hours worked for the Parks Department for purposes of overtime. If the employee substitutes paid personal leave earned with the Parks Department -- which the employee may use as the employee sees fit, including for time spent as a volunteer firefighter -- for the time off spent in volunteer activities, then the individual’s status as a bona fide volunteer to the Fire and Rescue Department is not jeopardized and the hours would not be compensable hours worked for the Parks Department for overtime purposes.
Conversely, as explained in Wage and Hour Opinion Letter FLSA2003-2, if the County Parks Department and the Fire and Rescue Department are part of the same public agency, and the County grants special leave for the hours the employee works as a firefighter without requiring him to use his personal accrued leave (which would be considered compensable hours worked for the County as discussed above), then the County employs him as both a mechanic and as a firefighter. In essence, because the County releases him from his normal mechanic duties and shift only if he spends the specified time performing alternative firefighting duties and pays him wages for the time worked, he is employed by the County as both a full-time mechanic and as a part-time firefighter. Therefore, such time would be compensable hours worked for the County Parks Department and would have to be counted when computing total hours worked for purposes of overtime. Moreover, he would not be able to serve additional hours as a “volunteer” firefighter for the County because of the statutory prohibition against an employee volunteering to his own agency to perform the same type of services he is employed to perform. However, even if the Park Department and Fire and Rescue Department are not separate agencies, if the employee substitutes paid personal leave earned – which the employee may use as the employee sees fit, including for time spent as a volunteer firefighter – for the time off spent in volunteer activities that are not the “same type of service,” then the individual’s status as a bona fide volunteer is not jeopardized and the hours would not be compensable hours worked for the Parks Department for overtime purposes.
Q.14 Firefighter, cross-trained and licensed as an EMT/paramedic, is employed by County A Fire and Rescue Department. The Fire and Rescue Department is not licensed to nor does it provide advanced life support, although it does respond to medical emergencies, accidents, and fires as first responders. The County A Department of Emergency Medical Services is licensed and required to provide advanced life support services as first responders. Firefighter serves as a volunteer EMT/Paramedic for the County A Department of Emergency Medical Services.
A.14 Similar to question 11, the determination of whether the firefighter, who is cross-trained and licensed as an EMT/Paramedic, is a bona fide volunteer turns in part on whether the County A Fire and Rescue Department and the County A Department of Emergency Medical Services are the same public agency. Again, we refer you to the discussion of this question in Wage and Hour Opinion Letter FLSA2003-2. Generally, “the government of a political subdivision, e.g., county, city, etc., with all of its departments and agencies, constitutes a single employer under the Act.” Field Operations Handbook § 10c11(a) (copy enclosed). Although somewhat limited, it appears likely that the regulations provide that “[p]ublic safety employees taking on any kind of security or safety function within the same local government are never
considered to be employed in a different capacity.” 29 C.F.R. § 553.30(c)(3) (copy enclosed).
This is based on the 1985 legislative history instructing the Department to interpret the phrase working in a different capacity “in the strictest sense” with regard to public safety employees.
See House Report No. 99-391, October 24, 1985, p. 25; Wage and Hour Opinion Letters FLSA2004-26NA (Oct. 29, 2004) and FLSA2004-25NA (Oct. 22, 2004) (copies enclosed).
Therefore, we have previously concluded that an individual employed as a fire marshal could not volunteer as a firefighter for the same employer (Wage and Hour Opinion Letter September 3, 1999) (copy enclosed), and that firefighter/EMS employees could not volunteer as tactical EMS medics for their employer’s police department SWAT team (see Wage and Hour Opinion Letter August 19, 1999) (copy enclosed).
Your letter provides no specific information regarding whether state law and the Census treat the County A Department of Emergency Medical Services as a separate public agency, including whether its payroll retirement and other personnel systems are separate, and whether it may sue and be sued in its own name. Additionally, you provide no evidence concerning the extent to which the County A Fire and Rescue Department exercises day-to-day control, if at all, over the volunteer services provided to the County A Department of Emergency Medical Services. Consequently, we are unable to determine if the entities should be considered the same public agency. If the agencies are determined to be separate public agencies under the FLSA, it is not necessary to determine if the individuals perform the same type of services.
However, in the event the agencies were not separate, while your scenario provides that there are some differences in the type of services provided in each role, there is insufficient information on the total scope of services in each role to make a “same type of services” determination, and, consequently, we are unable to provide a definite response to this question for that reason also.
Q.15 Police Officer is employed by County A Bureau of Police, where he responds to medical emergencies, accidents, and fires as a first responder but provides no medical or life support.
The Police Officer also volunteers for County A Fire and Rescue Department (a joint powers board of County A and City A) where he responds to medical emergencies, accidents and fires and provides medical and other life support.
A.15 Again, the determination of whether the police officer, who is a first responder, is a bona fide volunteer turns in part on whether the person is volunteering for the same public agency that employs the individual as a police officer and, if so, whether the volunteered services are the same as those the person is employed to provide. We refer you to the discussion of the factors to consider in making this determination as outlined in Wage and Hour Opinion Letter FLSA2003-2. Again, a “same type of services” determination can be made only after an examination of all the facts and circumstances of a particular case. We assume that, even though both agencies respond to the same types of emergencies, the Bureau of Police does not provide medical or life support services that the Fire and Rescue Department provides. It is our general position that the definition of “same type of services” typically allows for a determination that police and firefighters provide a different type of service, consistent with their different Dictionary of Occupational Titles categories. As explained in Wage and Hour Opinion Letter FLSA2003-2, merely responding to the same emergencies, such as traffic
accidents and fire calls, or acting as a medical first responder on occasion will typically not change the inherent difference in the two occupations. Accordingly, while we believe, for the reasons cited, that the police officer described in your scenario probably may volunteer as a firefighter without incurring FLSA wage liability, without more information on the relationship of the agencies, we are constrained in providing a definitive answer on this question.
We are also enclosing a copy of Wage and Hour Opinion Letter July 7, 1999 that addresses issues very similar to those raised in this and your September 16, 2002 letter. This letter may provide further guidance to you and your members concerning the volunteer issue.
This opinion is based exclusively on the facts and circumstances described in your request and is given based on your representation, express or implied, that you have provided a full and fair description of all the facts and circumstances that would be pertinent to our consideration of the question presented. Existence of any other factual or historical background not contained in your letter might require a conclusion different from the one expressed herein. You have represented that this opinion is not sought by a party to pending private litigation concerning the issue addressed herein. You have also represented that this opinion is not sought in connection with an investigation or litigation between a client or firm and the Wage and Hour Division or the Department of Labor.
We trust you will find the above discussion and analysis responsive to your request.
Sincerely,
Alfred B. Robinson Jr.
Acting Administrator
* Note: The actual name(s) was removed to preserve privacy in accordance with 5 U.S.C. § 552(b)(7).
CONSENT AGENDA ITEM 8
SUPPORTING DOCUMENTATION ATTACHED
8. Community Yard Sale Event Announcement.
Special Project Coordinator Jennifer Hakenen will facilitate community outreach and utilize a small budget of approximately $500 from the Waste Management Budget to spread the word through advertising and signage for the 3rd Annual Community Yard Sale.
City-wide programs like this help promote reuse, divert items that may otherwise end up in a landfill, support the City’s waste diversion efforts, and are a direct result of increased staffing.
This is an informational item only. Questions or participation information can be directed to Jennifer Hakenen at [email protected], or by calling 707.677.0133.
Attachments:
- Event Flyer
COMMUNITY
YARDSALE
Here are the details…
Host your own sale in front of your residence
or team up with other neighbors on your
street. Turn your old, or no longer“working in
my life”, items into treasures for someone else
while earning some extra cash for yourself!
This event will help others find reusable items
promoting reuse and reducing items that
might otherwise go to the landfill.
✦ Set up by 10am day of the sale
✦ The City will advertise via local media
✦ Signs will be posted at street intersections
to direct people toward streets where
people are selling
✦ Sale will be held rain/shine/wind
✦ If you plan to sell you must email Jennifer
Hakenen by May 30th to ensure there is
signage for your street
When:
Time:
Other:
Saturday, June 8 , 2024
City of Trinidad
Signs will be posted
10am - 3pm *no early birds
please
If you have questions please
contact Jennifer Hakenen @
[email protected] or
707-677-0133
City of Trinidad
CONSENT AGENDA ITEM 9
SUPPORTING DOCUMENTATION ATTACHED
9. Onsite Wastewater Treatment System Maintenance Program Update.
DISCUSSION AGENDA ITEM
Date: May 14, 2024
________________________________________________________________________ Item: Septic Sue/OWTS Program Update
The City adopted Proclamation 2022-01 which coincided with the kickoff of the City’s renewed efforts to actively integrate all properties into the OWTS Management Program to ensure all systems obtain and maintain a current OWTS Operating Permit.
PROJECT STATUS: When the project began, 27% of the parcels in Trinidad had a valid OWTS Operating Permit. Now, 20 months later, 71% of the households have valid OWTS Operating Permits.
PROJECT SCOPE: The City has reached out via letter to all the owners of developed parcels within City limits that did not have a valid OWTS Permit to integrate them into the OWTS Management Program. City staff have been working with the homeowners over the last 20 months to get systems inspected and repaired as needed to issue a valid OWTS Permit. Thanks to the cooperation and diligence of most homeowners, these efforts have resulted in us now having 71% of homes having current permits in the OWTS Management Program. There are also approximately 15 additional properties with the City Planner that are pending review, repairs, or additional information. Once those files are processed and permits issued the compliance rate will increase additional percentages.
During this process, a number of failed systems and systems in need of repair have been identified and repaired and/or replaced. This will help protect water quality and public health in the City, which is a primary purpose of the OWTS Management Program.
PROJECT TIMELINE: Final notices went out to all remaining property owners who had not integrated themselves into the program in October 2023. The letter stated that if the homeowner was unable to get a septic inspection or repair in accordance with the City’s ordinance by the end of the year for good cause, they were being asked to reach out to myself or Gabe to discuss the situation. To date, all but 10% of residents have made some type of contact with the City regarding their OWTS Management Program Status.
Permits expiring in 2024 and thereafter, will be notified 60 days prior to the expiration date and renewals will be processed as normal and under the new fee schedule that took effect July 1, 2023, as authorized by the City Council.
City staff are encouraged with the progress that each homeowner has made toward voluntary integration into the OWTS Management Program.
26%-No
Permit
27%-
Current
Permit
47%-Permit
Expired
September 2022 - Permit Status
No Permit
Current Permit
Permit Expired
21% - No
Permit
71% - Current …
8% - Permit
Expired
May 2024 - Permit Status
No Permit
Current Permit
Permit Expired
DISCUSSION AGENDA ITEM 1
SUPPORTING DOCUMENTATION ATTACHED
1. Proclamation 2024-02; Recognition and Support of North Coast Lemonade Day June 01, 2024.
Good evening, Madam Mayor,
Sorry it took me a while to respond.
No children have signed up to host stands in Trinidad yet, but we are hopeful that some still will. We have distributed material to all school administrators, especially to those schools that have grade 3-5 classrooms. (While a child of any age is encouraged to participate, the online curriculum and program is geared for these grade levels.) This includes Trinidad Union School. Coupling that with your council's potential proclamation of this program/event, we anticipate seeing the participation numbers rise in your area.
The Humboldt County Board of Supervisors will be declaring Saturday, June 1, 2024, as "Humboldt Lemonade Day" at their meeting on 5/7/2024. We would like to see all the incorporated cities within the county follow suit by proclaiming "Lemonade Day," as well.
This would create the unity and support we hope to achieve across the entire county that will bolster and strengthen this FREE and very worthwhile hands-on learning program.
Lemonade Day provides our local youth with an opportunity to learn about and practice specialized skills that can open future doors for them to positive jobs and/or careers that they might not have known about or explored otherwise.
I'd ask that your council use this letter as the basis for considering a request to make the proclamation in support of this event on behalf of its citizens, both young and young at heart.
Thank you for your time and consideration in this matter.
Sincerely,
David Wickizer
TRINIDAD CITY HALL Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
(707) 677-0223
Proclamation supporting the City of Trinidad’s Participation in
NORTH COAST LEMONADE DAY
JUNE 01, 2024
WHEREAS, small businesses started by our community’s innovative entrepreneurs have created the economic backbone of our local economy; and WHEREAS, Lemonade Day is a national celebration that infuses today’s youth with the spirit of enterprise, teaching the basic business and entrepreneurial skills necessary to become contributing members of their communities and successful participants in the global economy; and
WHEREAS, young people who participate in entrepreneurship feel a strong sense of control in their lives. Youth entrepreneurship decreases dropout rates because students see more real work relevance to what they are learning every day in their classrooms.
Young people who have looked at the world through a business owner’s eyes also make better employees down the road; and
WHEREAS, Lemonade Day’s core philosophy of “Spend, Save and Share” teaches children how to manage their money by establishing a budget, seeking investors, paying for their own expenses, saving part of their profits, and giving back to the community.
NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of Trinidad declares Saturday, June 1, 2024, NORTH COAST LEMONADE DAY in Trinidad and urges the community to buy lemonade from our local kids’ stands to support the next generation of entrepreneurs.
AND BE IT FURTHER PROCLAIMED that the City Council salutes the organizers, volunteers and participants of Lemonade Day. The Council supports the City’s participation in NORTH COAST LEMONADE DAY, including its issuance of one-day business licenses to our young lemonade stand proprietors, and commits to continue investing in the future of our youth.
Dated: June 1, 2024
Cheryl Kelly
Mayor
DISCUSSION AGENDA ITEM 2
SUPPORTING DOCUMENTATION ATTACHED
2. Discussion/Decision regarding Contract with Humboldt County Sheriff to provide Law Enforcement Services to the City of Trinidad.
1 City of Trinidad
Contract
Agreement to Provide Law Enforcement Services Within The City of Trinidad
THIS AGREEMENT is made and entered into this 1st day of July 2024 by and between the County of Humboldt, a political subdivision of the State of California (hereinafter called "COUNTY"), and the City of Trinidad, a municipal corporation in the County of Humboldt (hereinafter called "CITY").
WITNESSETH:
WHEREAS, pursuant to the authority provided in the Government Code, CITY and COUNTY desire to contract in order that COUNTY, through Sheriff, will perform law enforcement services within the CITY.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Term of Agreement. Basic Term. The term or this AGREEMENT shall commence July 1, 2024 and continue through June 30, 2029, a sixty (60) month term, unless sooner terminated pursuant to Section 18.
2. The basic level of services to be provided shall consist of 24 hours of coverage from a sworn peace officer (830.1 PC), seven (7) days a week for response to calls at a level not less than that provided by the Sheriff in adjacent areas of the COUNTY, including related back-up and auxiliary services such as investigative, community services, criminalistics, supervisorial, and traffic service functions.
This also includes services and support from the Sheriff’s records bureau, Sheriff’s property/evidence bureau, and public safety dispatch services.
Personnel shall be supported by an appropriate number of Sheriff's supervisory and management personnel, as deemed necessary by the COUNTY. This service will include regular, random patrol, as available, of the City of Trinidad during all hours of service. It will also include providing the citizens of Trinidad access to report and or file a police report or anonymous complaint online, and access to crime mapping.
3. The law enforcement services to be provided by the COUNTY to the CITY within the CITY 's incorporated area shall include:
A. Enforcement of State Statutes;
B. Enforcement of ordinances of CITY (excluding animal control, building and 2 construction);
C. Police protection of the type provided by the Sheriff; D. Traffic and DUI enforcement, with the exception or such traffic enforcement as may be provided by the California Highway Patrol on any freeway traversing the CITY or as required by statute;
E. All detective, juvenile and other specialized services provided by the Sheriff in the unincorporated areas of the COUNTY, such as homicide, child abuse investigations and narcotics enforcement;
F. Abandon Vehicle Abatement;
G. When requested by the CITY, via the City Manager, a representative of the Sheriff’s Office at the rank of Lieutenant or higher shall meet quarterly with the public, either in a special meeting or at a council meeting to discuss CITY policing issues;
H. All other law enforcement services of the type provided by the Sheriff within the unincorporated areas of the COUNTY.
The Sheriff shall not be required to assume any enforcement duty or function inconsistent with those performed by the Sheriff under the ordinances of the COUNTY and the statutes of the State of California.
4. The Sheriff shall give prompt consideration to all requests of the City Manager regarding the delivery of general law enforcement services, including staffing assignments, and make every reasonable effort to comply with requests consistent with good law enforcement practices and other provisions of this AGREEMENT.
To facilitate the timely exchange of such information between the CITY and the COUNTY, the Parties hereto shall meet from time to time to discuss performance issues under this AGREEMENT and the attendees shall include the City Manager, the Operations Division Commander, the McKinleyville Station Lieutenant, and a designated city council member.
5. For the purposes of performing services and functions pursuant to this AGREEMENT, and only to give official status to such performance, every COUNTY Deputy or employee shall be deemed to be an ex-officio officer of the CITY while engaged in performing any such service or function which is a municipal function falling within the scope of this AGREEMENT.
6. The CITY shall have the right to discuss with the COUNTY issues of concern related to matters covered under this AGREEMENT. However, the manner or rendition of services, the standard of performance, the discipline of employees and other matters incident to the performance of services, including control of personnel so employed, shall remain under the exclusive control of the Sheriff.
The Sheriff shall, however, give consideration to requests of the City Manager, which may relate to the performance of services under this AGREEMENT. In the event of a dispute between the parties as to the duties and functions to be rendered or the manner of their performance, determinations by the Sheriff shall be final and conclusive as between the parties.
3 7. An inventory of furnishings and fixtures contributed by the CITY and the COUNTY for purposes of supplying the station shall be maintained throughout this AGREEMENT. Each party will continue to bear their own costs of such items and upon termination of this AGREEMENT, said items of like kind shall be returned to the respective agency that had original ownership.
8. COUNTY shall provide the necessary supplies, equipment, services and materials required for performing its duties under this AGREEMENT, including vehicle acquisition, maintenance, fuel and replacements.
9. COUNTY and CITY shall determine where such law enforcement quarters are to be located within the CITY. It is expressly understood that the COUNTY may use such quarters in connection with the performance of its duties beyond the scope of services previously outlined in sections 1-4 and in connection with the performance of its duties in territory outside the CITY and adjacent territory, provided, however, that the performance of such non-city duties shall be at no additional cost to the CITY.
10. At the time of execution of this AGREEMENT, the charge to the CITY for the services and functions to be performed by the COUNTY at the level of service agreed upon by the CITY is outlined in Exhibit A – Charges for Services. The total cost charged to the CITY does not include expenses attributable to services or facilities normally provided to all cities within the COUNTY as part of enforcement duties and functions performed by the Sheriff under the ordinances and regulations of the COUNTY and the statutes of the State of California.
11. The CITY shall render to COUNTY one-fourth of the annual charges on a quarterly basis payable on the following dates: first (1st) payment due October 1, second (2nd) payment due January 1, third (3rd) payment due April 1, and fourth (4th) payment due July 1. The COUNTY shall, 30 days prior to the payment due date, provide to the CITY an invoice which will reflect the amount due by CITY for services rendered by COUNTY under this AGREEMENT during the previous quarter. If such payment is not received by COUNTY within thirty (30) days of the due date, COUNTY shall be entitled to recover interest at a rate of seven (7%) percent per annum and the COUNTY may terminate this AGREEMENT immediately, and without any further notice take such steps as may be necessary to enforce payment.
12. The CITY, its officers and employees, shall not assume by this AGREEMENT any liability for the direct payment of any salary, wages, or other compensation to any officer or employee of COUNTY that is performing services hereunder for the CITY , or for any other liability other than that provided for in this AGREEMENT.
13. CITY shall hold harmless, defend and indemnify COUNTY and its agents, officers, officials, employees and volunteers from and against any and all claims, demands, losses, damages, liabilities, expenses and costs of any kind or nature, including, without limitation, attorney fees and other costs of litigation, arising out of, or in 4 connection with, CITY’s performance of, or failure to comply with, any of the obligations contained herein, except such loss or damage which was caused by the sole negligence or willful misconduct of COUNTY.
The CITY and its insurer, or self-insured pool, shall provide evidence of general and automobile liability insurance with limits no less than $2,000,000.00 per occurrence. The CITY shall provide an endorsement from its insurer or selfinsured pool naming the County of Humboldt, its officials, employees, and volunteers as additional insured.
14. It is expressly understood between the parties to this AGREEMENT that no employer/employee relationship is intended; the relationship of COUNTY to CITY being that of an independent contractor and CITY and COUNTY retain sole and independent liability for the actions of the employees of each.
15. CITY, through its City Manager, shall have access to non-privileged and nonconfidential reports and other documents pertaining to the services provided hereunder and within the scope of the Public Records Act (Government Code Section 6250 et seq.). COUNTY shall transmit monthly, to the City Manager statistical reports on crime occurrence, traffic incidents, and other contract services within the CITY.
16. All work performed hereunder is subject to limitations of Section 23008 of the Government Code or the State of California, and in accordance therewith, before any work is performed or services rendered pursuant hereto, an amount equal to the cost to the CITY must be reserved by the CITY from its funds to ensure payment for work, service, or materials provided by COUNTY hereunder.
17. COMPLIANCE WITH NUCLEAR FREE ORDINANCE: In recognition of the Humboldt County Nuclear Free Ordinance, the CITY certifies by its signature below that it is not a nuclear weapons contractor, in that CITY is not knowingly or intentionally engaged in the research, development, production or testing of nuclear warheads, nuclear weapons systems or nuclear weapons components as defined by the Nuclear Free Ordinance in Humboldt County. CITY agrees to notify COUNTY via HCSO immediately if it becomes a nuclear weapons provider, as defined above. CITY acknowledgesthat, per the terms of the Humboldt County Nuclear Free Ordinance, COUNTY via HCSO may immediately terminate this AGREEMENT if it determines that the foregoing certification is false or if CITY becomes a nuclear weapons provider.
18. Either party may terminate this contract upon sixty (60) days written notice, which notice shall take effect at the end of the sixty (60) day notice period. Compensation shall be prorated for the fiscal quarter in which the termination occurs.
19. Notices given to parties under this AGREEMENT shall be deemed given when personally delivered or sent and delivered by United States certified mail, postage 5 prepaid, return receipt requested and addressed as follows:
TO THE COUNTY TO THE CITY
Office of the Sheriff Office of the City Manager
Humboldt County Sheriff City of Trinidad
826 4th Street PO Box 390
Eureka, CA 95501 Trinidad, CA 95570
20. No waiver with respect to one covenant, term or condition shall be deemed to constitute a waiver of any other covenant, term, or condition herein, or a waiver of any prior or subsequent failure to perform such covenant, term, or condition.
21. The provisions of this AGREEMENT shall be binding upon and shall inure to the benefit of the parties hereto and their respective governing boards, successors, assigns, and legal representatives.
22. This AGREEMENT contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be given effect, and this AGREEMENT may only be amended by a writing signed by the parties.
23. The invalidity of any provision of this AGREEMENT as determined by a court of competent jurisdiction shall in no way affect the validity of any other provision hereof.
24. This AGREEMENT shall be construed in accordance with the laws of the State of California. Any dispute arising hereunder, or relating hereto, shall be litigated in the State of California and venue shall lie in the County of Humboldt unless transferred by court order pursuant to California Code of Civil Procedure Sections 394 or 395.
25. Time is hereby expressly declared to be of the essence or this AGREEMENT and each and every provision herein.
26. This AGREEMENT, and any amendments hereto, may be executed in one (1) or more counterparts, each of which shall be deemed to be an original and all of which, when taken together, shall be deemed to be one (1) and the same agreement. This AGREEMENT, and any amendments hereto, may be signed by manual or electronic signatures in accordance with any and all applicable local, state and federal laws, regulations and standards, and such signatures shall constitute original signatures for all purposes. A signed copy of this AGREEMENT, and any amendments hereto, transmitted by email or by other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this AGREEMENT and any amendments hereto.
6 27. Each person executing this AGREEMENT represents and warrants that he or she is duly authorized and has legal authority to execute and deliver this AGREEMENT. Each party represents and warrants to the other that the execution and delivery of this AGREEMENT and the performance of such party’s obligations hereunder have been duly authorized.
[Signatures on following page.]
7 IN WITNESS THEREOF, CITY by resolution or other official action duly adopted by its council caused this AGREEMENT to be subscribed by its Mayor and attested by its Clerk, and the COUNTY, by order of its Board of Supervisors, has caused this contract to be subscribed by the Chairman and the seal of said Board to be affixed thereto and attested by the Clerk of said Board on the day and year first hereinabove written.
ATTEST: ATTEST:
City Clerk Clerk of the Board of Supervisors
By: By:
APPROVED AS TO CONTENT AND
RECOMMENDED
By: By: City Manager Willliam F. Honsal, Sheriff City of Trinidad County of Humboldt By: By: Mayor Chair City of Trinidad Board of Supervisors County of Humboldt
APPROVED AS TO FORM
By:
Office of County Counsel County of Humboldt
By:
Risk Manager
County of Humboldt
8 Exhibit A – Charges for Services
Annual Computation:
The Sheriff’s Office (“SO”) shall prepare an annual computation utilizing the prior fiscal years financial data and present the computation to the CITY Manager and designated CITY council member by email on or before February 15th of each year. In the event the SO is unable to provide the computation by February 15th due to delays in the annual financial data being completed, then the CITY Manager and designated council member will be notified by email of an updated timeline.
The CITY shall have fourteen (14) days from date of delivery of the computation email to notify the SO if a meeting is needed to discuss the updated charges for services or if the new computed amount is acceptable.
Provided a meeting is needed to review and discuss the charges, both the CITY and SO shall make every effort to meet and confer with the intent to finalize the new rate by March 30th, so that both parties can plan accordingly for their annual budget. The participants in the meeting to review the charges for services shall include the City Manager, a designated city council member, the SO Operations Division Commander, and the SO Finance Director.
For the period of July 1, 2024 through June 30, 2025, the CITY and SO have met and agreed that the charges for services rate will be $67,500.00 for fiscal year (FY) 2024-25.
For all subsequent fiscal years, the new rate shall be agreed to by both parties by an amendment to the agreement effective July 1st of each year.
Methodology for the Annual Computation:
The SO shall use the following methodology for assessing the charges for services for the CITY.
A) The SO will calculate its Total Net Expenses to provide law enforcement services to the county. The methodology for calculating Total Net Expenses is as follows:
1) The below SO charges shall NOT be included in the Total Net Expenses:
• Internal Service Fund Information Technology Charges
• Internal Service Fund Purchasing & Disposition Charges • Internal Service Fund ADA Charges
• Internal Service Fund Communications/Radio Infrastructure Charges • COUNTY General Liability, Property, or Bond Insurance • COUNTY Cost Plan Charges (aka A87 Charges)
• Fixed Assets
• Grants
9 • Locations of the SO that do not support the CITY. As of FY2024-25 those locations are as follows:
Garberville Station Willow Creek Station
Myrtle Avenue Annex Patrol Allocation of Main Station
• Divisions of the SO that provide services to the entire county and/or divisions that provide services unrelated to the services being contracted for in this agreement. As of FY2024-25 those divisions to be excluded include the following:
Airport Security Inmate Welfare
Animal Shelter/Animal Control Jail Based Competency Program CCW Marijuana Enforcement Team
Civil Mobile Field Force
Coroner Office Office of Emergency Services
Correctional Facility Public Administrator
Courts Search & Rescue
Crisis Negotiation Team Sheriff’s Work Alternative Program Drug Task Force Special Services
EOD Team (Bomb Squad) SWAT Team
2) The below SO charges shall be included in the Total Net Expenses:
• Interfund Expenditures. These are charges to the SO from other county departments (ie. Public Works) for direct services and/or supplies. • Divisions and locations of the SO that provide services that are being contracted for in this agreement. The SO Indirect Costs that are allocated to these divisions/locations will also be included.
As of FY2024-25 those divisions/locations include the following:
Abandoned Vehicle Abatement McKinleyville Station
Body Worn Camera Program Patrol
Deputy FTO/Recruit Program Patrol Vehicle Costs
Dispatch Property Evidence
K9 Program Records
Major Crimes Division (MCD)
As of FY2024-25 the SO indirect cost centers include the following:
Administration Main Station
Armory Operations Command Team
Backgrounds/Recruitment Training
10 Deputy Sheriff/CSO Shared Costs
3) Revenue for fees, services, reimbursements, donations, and Measure Z revenue will be included in calculating the Total Net Expenses.
B) The CITY will pay its pro-rata share of the Total Net Expenses based on population. 1) Data from the US Census 2020 will be used for calculating population and is as follows:
2) The City of Trinidad has a US Census 2020 population of 307. Trinidad has a higher proportion of short term rentals compared to other incorporated cities in our area and therefore Trinidad has agreed to a population adjustment of an additional 120 to account for this. That brings the total remaining population covered by the SO to 73,921 resulting in the below pro-rata share for each contract city.
DISCUSSION AGENDA ITEM 3
SUPPORTING DOCUMENTATION ATTACHED
3. Discussion/Decision regarding Resolution 2024-08; Calling for an Election on a Proposal to Continue the City of Trinidad’s .75% Transaction and Use (SALES) Tax for 4-Years.
DISCUSSION/ACTION AGENDA
Date: Tuesday, May 14, 2024
Item: Discussion/Decision regarding Resolution 2024-08; Calling for an Election on a Proposal to Continue the City of Trinidad’s .75% Transaction and Use (SALES) Tax for 4-Years.
Background: At the March 12, 2024 meeting, staff presented the Council with brief history of the .75% tax add-on, the anatomy of the tax, voter approval percentages for each election held, and how the additional revenue serves not only the City of Trinidad, but the community at-large.
The Council heard public comments from two Trinidad area residents who felt the tax was unfair to those that inadvertently pay it without the ability to vote on it. The Council also heard from in-City residents who expressed an interest in fiscal responsibility and accountability.
Staff noted the tax is a General Tax that can be spent at the discretion of the Council, for the purpose of not only serving the City’s needs, but also in ways that invests in the greater good of the entire Trinidad area.
The Council requested that a list of in-city addresses posted on the City website to assist outside-city residents in their effort to avoid having to pay the tax when online vendors are able to use their discretion when applying the tax rate to the purchase.
At the conclusion of the discussion the Council unanimously agreed “…to direct staff to prepare documentation for a ballot measure for the November election regarding the add-on .75% Sales Tax.” The Resolution presented tonight represents the next step in this process. Once the resolution is adopted, staff will proceed with preparing the Ordinance authorizing continuation of the tax should the majority of Trinidad voters support it in November.
Additional steps to follow will be the ballot preparation, set to begin in August. The Clerk’s office will provide monthly updates and announcements to the Council regarding publishing deadlines and required notifications for both elements of the election.
Proposed Action:
Adopt Resolution 2024-08; Calling for an Election on a Proposal to Continue the City of Trinidad’s .75% Transaction and Use (SALES) Tax for 4-Years.
City of Trinidad Resolution 2024-08 Page 1 of 1
TRINIDAD CITY HALL Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
(707) 677-0223
RESOLUTION 2024-08
CALLING FOR AN ELECTION ON A PROPOSAL TO CONTINUE THE CITY OF TRINIDAD’S ¾% (.75%) TRANSACTION AND USE (SALES) TAX FOR 4-YEARS
WHEREAS, the City of Trinidad is one of the smallest cities in the State of California. With a population of 323, the City has a very limited tax source of revenue, and
WHEREAS, the City of Trinidad is visited yearly by thousands of tourists and many residents of surrounding communities.
While visitors to the City support the local economy and commerce, residents in the surrounding communities contribute greatly to many of the civic activities in the City, and WHEREAS, the high volume of visitors relative to the small number of city residents places a very high burden on services provided by City's General Fund. These services include, but are not limited to, police and fire protection, street and public facility services, park, trail and environment maintenance and protection, and services provided by the Town Office. Additionally, the City also provides significant supporting services of police and fire protection to its surrounding communities, and WHEREAS, additional revenue is needed so that the General Fund can meet the increased service demands, and WHEREAS, in 2004, citizens of Trinidad approved an increase of transaction and use tax by 1% for four years to increase the General Fund reserve, and in 2008, 2012, 2016, and 2020 the majority of citizens of Trinidad voted in favor of extending the transaction and use tax by ¾% (.75%) for an additional four years. Now, the Trinidad City Council proposes to extend this increase by four more years to continue to support the capability of the General Fund to provide these services, NOW THEREFORE, BE IT RESOLVED, by the Trinidad City Council as follows:
1. The following Sales Tax measure Ballot Question shall be submitted before the voters at the General Election to be held on November 05, 2024:
“Shall a ¾ cent transaction and use tax be continued in the City of Trinidad for four years, starting on April 1, 2025”
2. Municipal Code Codification. Upon approval of the foregoing question by a simple majority vote (50% + 1), the City shall adopt the Sales Tax Extension Measure.
3. Jurisdictional Boundaries and Administration: The Sales Tax increase would be collected only within the City limits of Trinidad and be administered by the California State Department of Tax and Fee Administration (CDTFA); and
4. Impartial Analysis: The City Attorney is directed to draft an impartial analysis of the measure.
5. Further Actions: The City Clerk is directed to take all action, including public notice, and publication of the measure as required by elections law to place the measure on the November 05, 2024 ballot.
6. Election Services: The City of Trinidad shall request consolidation of this election with the County Elections Office and shall reimburse the County in full for the services rendered to conduct said election.
PASSED AND ADOPTED BY THE TRINIDAD CITY COUNCIL, of Humboldt County of the State of California on May 14, 2024.
I, the undersigned, hereby certify that the foregoing Resolution was duly adopted by the Trinidad City Council by the following vote:
Ayes:
Noes:
Absent:
Abstain:
Attest:
________________________________ ____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
DISCUSSION AGENDA ITEM 4
SUPPORTING DOCUMENTATION ATTACHED
4. Discussion/Decision Regarding Resolution 2024-09; Adopting the Uniform Public Construction Cost Accounting and Review Procedures, and First Reading of Ordinance 2024-01; Adding New Chapter 4 to Title 3 of the Trinidad Municipal Code to Provide Informal Bidding Procedures Under the Uniform Public Construction Cost Accounting Action.
AGENDA ITEM
Date: May 14, 2024
________________________________________________________________________ Item: Adoption of Uniform Public Construction Cost Accounting Act and New Purchasing Procedures Ordinance
The California Uniform Public Construction Cost Accounting Act (Act) is a voluntary program available to all public entities in the State, but it applies only to those public agencies that “opt in” to the provisions set forth by the Act. The Act is legislation enacted to help promote “uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state”. Additional information is attached Frequently Asked Questions.
Benefits to the City of Trinidad of adopting this Act include simplified bidding and expedited contracting for projects that are $200,000 or less and reduced number of bids based on project size.
These provisions reduce the time, effort and expense associated with bidding projects under $200,000 and simplified administration for those projects. The procedures for bidding for larger projects are typically handled by the contract City Engineer, and generally would remain the same.
The Act’s accounting procedures are intended to capture and record all direct and indirect labor, materials, equipment, subcontractors, and supervision costs, as well as the appropriate overhead costs for the public agency associated with each “project” it performs with its own forces. The procedures follow industry-standard accounting methods, and in many cases are not much different from those already in place at most agencies.
Adoption of the Act would have a minor impact on the City’s current accounting procedures. The primary change is standardizing the estimated and actual costs per the Act. There is a requirement to include overhead for indirect project costs per hourly staff rates, however set percentage overhead rates are acceptable for Cities under 75,000 in population. An additional change is the requirement to track equipment use for projects; but it is acceptable to use standard Caltrans rates, so this won’t be that difficult.
Staff recommends opting in to the Act by adopting Resolution 2024-09. In addition, participating agencies he Act requires that participating agencies adopt an Informal Bidding Ordinance, attached here as Ordinance 2024-01
Staff Recommendation:
• Adopt Resolution 2024-09 Adoption of the Uniform Public Construction Cost Accounting Act.
• Waive Full Reading and Introduce an Ordinance of the City of Trinidad Adopting 2024-01 of the Trinidad Municipal Code Relating to Purchasing Procedures and Including Adoption of the Uniform Public Construction Cost Accounting Act.
Attachments:
• CA Uniform Public Construction Cost Accounting Act Frequently Asked Questions • Resolution 2024-09; Adoption of the Uniform Public Construction Cost Accounting Act • Ordinance 2024-01; Informal Bidding Ordinance
Resolution 2024-09 1
Trinidad City Hall Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
707-677-0223
RESOLUTION 2024-09
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TRINIDAD, STATE OF CALIFORNIA IN
THE MATTER UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING PROCEDURES WHEREAS, prior to the passage of Assembly Bill No. 1666, Chapter 1054, Statutes of 1983, which added Chapter 2, commencing with Section 22000, to Part 3 of Division 2 of the Public Contract Code, existing law did not provide a uniform cost accounting standard for construction work performed or contracted by local public agencies; and
WHEREAS, Public Contract Code section 22000 et seq., the Uniform Public Construction Cost Accounting Act, establishes such a uniform cost accounting standard; WHEREAS, the Commission established under the Act has developed uniform public construction cost accounting procedures for implementation by local public agencies in the performance of or in the contracting for construction of public projects; and
NOW, THEREFORE BE IT RESOLVED, that the City of Trinidad, California, hereby elects under Public Contract Code section 22030 to become subject to the uniform public construction cost accounting procedures set forth in the Act and to the Commission's policies and procedures manual and cost accounting review procedures, as they may each from time to time be amended, and directs that the City Clerk notify the State Controller forthwith of this election.
This resolution shall take effect upon its adoption.
PASSED, APPROVED AND ADOPTED this 14th day of May, 2024 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Attest:
____________________ ____________________
Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
TRINIDAD CITY HALL Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
(707) 677-0223
ORDINANCE NO. 2024-01
AN ORDINANCE OF CITY COUNCIL OF THE CITY OF TRINIDAD ADDING CHAPTER 4 TO TITLE 3 OF
THE TRINIDAD MUNICIPAL CODE TO PROVIDE INFORMAL BIDDING PROCEDURES UNDER THE
UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACTION
A. WHEREAS, the City of Trinidad (“City”) has elected to adopt the procedures established by the Uniform Public Construction Cost Accounting Act pursuant to California Public Contract Code Section 22000, et seq.; and
WHEREAS, in furtherance thereof, the City Council ordains as follows, and shall publish at Sections ____ of the Trinidad Municipal Code, the following:
ORDIANANCE NO. 2024-01
SECTION 1. UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING PROCEDURE(S) ADOPTION. The City of Trinidad has adopted and elected to render itself subject to the terms and provisions of the Uniform Public Construction Cost Accounting Act, codified at California Public Contract Code Sections 22000, et seq. (the “Act”).
SECTION 2. INFORMAL BID PROCEDURES. Public projects, as defined by the Act and in accordance with the limits specified in Section 22032 of the Public Contract Code, may be let to contract by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code.
SECTION 3. CONTRACTORS LIST. The City shall comply with the requirements of Public Contract Code Section 22034, and maintain a list of qualified contractors pursuant thereto.
SECTION 4. NOTICE INVITING INFORMAL BIDS. Where a public project is to be performed which is subject to the provisions of this Ordinance, a notice inviting informal bids shall be circulated using one of both of the following alternatives, or alternative in compliance with the Act:
1. Notices inviting informal bids may be mailed, faxed, or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with Section 2, above,
2. Notices inviting informal bids may be mailed to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department/agency soliciting bids, provided however:
a. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
SECTION 5. AWARD OF CONTRACTS
The City Manager and the Director of Public Works (if separate from the City Manager) are each authorized to award informal contracts on behalf of the City pursuant to the Act.
ORDINANCE EFFECTIVE DATE.
This Ordinance shall take effect and be in force thirty (30) days from the date of its passage, and before the expiration of fifteen (15) days after its passage, it or a summary of it, shall be published once, with the names of the members of the City Council voting for and against the same in a newspaper of local circulation and/or legal notification location.
INTRODUCED, PASSED, AND ADOPTED by the City Council of the City of Trinidad on the 14th day of May, 2024, by a majority vote of the City Council, as follows:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
________________________ _________________________
Gabriel Adams Cheryl Kelly
City Clerk Mayor
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CALIFORNIA UNIFORM PUBLIC CONSTRUCTION
COST ACCOUNTING ACT
FREQUENTLY ASKED QUESTIONS (FAQs)
These FAQs have been compiled to assist agencies that are participating in the California Uniform Public Construction Cost Accounting Act (the Act), as contained in Public Contract Code (PCC) Section 22000, et seq. All references are to PCC, unless otherwise stated.
1. What is the Uniform Public Construction Cost Accounting Act? The Act is legislation that was enacted in 1983 to help promote “uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state” (Section 22001). The Act is a voluntary program available to all public entities in the State, but it applies only to those public agencies that have “opted in” to the provisions set forth by the Act using the processes outlined in the Act. The entirety of the Act is found at Sections 22000-22045.
2. What are some of the key provisions of the Act?
The Act allows for public project work in the amount of $60,000 or less to be performed by a public agency’s force account using the public agency’s own resources, or by negotiated contract, or by purchase order (Section 22032(a)). Public projects in the amount of $200,000 or less may use the informal or formal bidding procedures set forth in Section 22032(b) or (c) of the Act. Public projects at a cost of more than $200,000 must use formal bidding procedures to let the contract pursuant PCC Section 22032(c).
3. What are the benefits of the program?
Increased force account limit for public agencies;
Simplified bidding for projects that are $200,000 or less; Reduced number of formal bids based on project size; and Expedited contracting for projects under $200,000.
Many participating agencies appreciate the program because it has given them more leeway in the execution of public works projects under a certain dollar amount; sped up the award process; expedited project delivery; reduced the time, effort, and expense associated with bidding projects under $200,000; and simplified administration for those projects. Few agencies have experienced challenges with the accounting requirements and overhead provisions. Moreover, adjustments, when required, have been relatively simple; most required procedures were already in place, so there were few, if any, major changes to existing operations. The current Standard Accounting Codes Structure satisfies reporting requirements when used properly.
4. Is the Uniform Public Construction Cost Accounting Act mandatory for public agencies? No. The Act is a voluntary program requiring a public agency to “opt in” using the process outlined in the Act.
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5. How does a public agency become subject to the Act?
The governing body must elect by resolution to become subject to the Act and must file a copy of the approved resolution with the State Controller’s Office (Section 22030). Sample documents are available at: http://www.sco.ca.gov/ard_cuccac.html. Once an agency has opted into the Act, it will remain a part of the program.
6. May a public agency withdraw from the Act?
Yes. An agency may withdraw from the Act by filing with the State Controller’s Office an approved resolution of the agency’s election to withdraw that was made during a public meeting of the agency’s governing body.
7. Must a participating agency “opt in” to the Act annually? No. Once a participating agency “opts in” to the Act, the agency remains subject to the Act until it “opts out” of the Act.
8. What is the California Uniform Construction Cost Accounting Commission? The Commission was created to administer the Act, per Section 22010. It consists of 14 members: 13 members appointed by the State Controller and the License “A” member of the Contractors’ State License Board. Seven members represent the public sector (counties, cities, school districts, and special districts). Six members represent the private sector (public works contractors and unions). The Commission members receive no salary, but are eligible for reimbursement of their direct expenses related to the Commission.
9. What are the Uniform Public Construction Cost Accounting Procedures? These procedures are to be used for tracking costs for work performed by an Agency’s own forces on a “project” as defined by the Act (Section 22002(c)). The procedures do not apply to operations or maintenance work, or any work that meets the criteria listed in Section 22002(d).
These procedures are intended to capture and record all direct and indirect labor, materials, equipment, subcontractors, and supervision costs, as well as the appropriate overhead costs for the public agency associated with each “project” it performs with its own forces. The procedures follow industry-standard accounting methods, and in many cases are not much different from those already in place at most agencies. Sample forms are available in the CUCCAC Cost Accounting Policies and Procedures Manual at http://www.sco.ca.gov/Files-ARD-Local/CUCCAC_Manual.pdf School districts may use the Standard Accounting Code Structure to comply with tracking requirements.
10. Are the cost accounting procedures applicable for agencies whose work forces perform only maintenance tasks as defined in the Act and that contract all of their public projects to third parties?
No. The cost accounting procedures are applicable only for agencies that perform public project work such as construction and alteration by force account or otherwise. As maintenance does not constitute a “project” under the Act, the cost accounting procedures do not apply.
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11. When are participating agencies required to advertise if they choose to maintain a list of qualified contractors?
At least once per calendar year, each Public Agency that has elected to become subject to the Act and intends to use the notice provisions outlined in Section 22034(a) must establish a new list or update its existing list of qualified contractors by mailing, faxing, or emailing written notice to all construction trade journals designated for that Agency under Section 22036. The notice must invite all licensed contractors to submit the name of their firms to the Agency for inclusion on the Agency’s list of qualified bidders for the following twelve (12) months. Effective January 1, 2016, a participating agency can choose a specific date of their choice in which to renew its list of qualified contractors.
12. May an agency that chooses to maintain a list add a contractor to the list at any time during the year?
Yes.
13. What is meant by the term “qualified contractors” as used in section 22034(a)(1) of the Act?
Qualified contractors are contractors licensed by the State to perform the subject work.
The Commission has determined that nothing in the Act prohibits a participating agency from using additional objective pre-qualification standards in the formation and maintenance of their Qualified Contractors Lists if they so desire.
14. How can a contractor get on an agency’s list of contractors? The California Uniform Public Construction Cost Accounting Commission’s webpage has a list of agencies that are participating in the California Uniform Public Construction Cost Accounting Act (CUPCCAA). Please contact each agency directly to let them know you would like to be on their list of contractors. For a list of participating agencies, please see the “Participating Agency Lists” header at the following link:
https://www.sco.ca.gov/ard_cuccac.html
More detailed instructions for contractors can be found in Section 1.04.01 of the Cost Accounting Policies and Procedures Manual
15. Can a public agency disqualify or exclude certain contractors from the Qualified Contractors List required in Section 22034(a)(1)?
Agencies may disqualify contractors from Qualified Contractors Lists when the contractors fail to furnish information to meet the minimum criteria as established by the Commission.
16. For agencies that do not maintain an informal bidders list, are they allowed to choose who would get notifications of projects?
No. Section 22034(a)(2) provides for notifications to construction trade journals and exchanges in lieu of sending notifications to contractors on an informal bidders list. An agency may send notices to selected contractors provided it has also met the advertisement requirements of Section 22034(a).
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17. What is the difference between “qualifying contractors” under the Act and “prequalification of contractors” by school districts under Section 20101? Qualifying contractors is a process that allows contractors to register with a public agency for notification of public works opportunities. The prequalification process under Section 20101 is a more complex process that requires a standardized questionnaire and evaluation of contractors using standard scoring criteria. The prequalification process is applicable under the Local Agency Public Construction Act, and does not apply to the Uniform Public Construction Cost Accounting Act.
18. Does a contractor have to be on an agency’s contactor list in order to perform projects less than $60,000?
No, any public project less than the $60,000 informal bidding threshold can be performed by employees of the public agency, by negotiated contract, or by purchase order. An agency’s list of contractors is only required to be alerted of projects that surpass the informal bidding threshold.
19. Must a public agency a) notify contractors about public projects if the contractors are believed to not have the skills, credentials, or experience to perform the work required for the public project; and b) consider bids submitted by contractors that the public agency believes do not have the skills, credentials, or experience to perform the work? a) Yes. If a contractor is on the Qualified Contractors List, the contractor must be notified by the agency of public projects for which he or she is licensed to perform (Section 22034(a)(1)).
b) All bids received must be considered, unless an agency makes appropriate legal findings that a contractor is not legally responsible or his or her bid is not responsive.
20. Does the Act allow flexibility in cases of emergency and when repair or replacements are necessary to permit the continued conduct of a public agency’s operations or services? Yes. For the purposes of the Public Contract Code, an “emergency” is defined at Section 1102 as “a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.”
The Act sets forth in Section 22035(a) how a governing body should proceed in case of emergency repairs or replacements. This section states:
In cases of emergency when repair or replacements are necessary, the governing body may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the governing body, by contractor, or by a combination of the two. Section 22050 et seq., provides the emergency contract procedures to be followed in these cases. 5 | P a g e
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21. Do the alternative bidding procedures apply only to public projects as defined in Section 22002(c)?
The alternative bidding procedures apply only to work that constitutes a “public project” as defined in Section 22002(c) and has a construction cost within the limits described in Section 22032. The alternative bidding procedures are not required for the purchase of goods or materials that are not part of a “public project.” However, as outlined in Section 22003, a participating agency may also use the alternative bidding procedures when contracting for maintenance or other work that does not fall within the definition of a “public project” if it so chooses.
22. What will membership in the Act cost my agency?
Nothing. There are no membership fees or dues. However, the Commission does accept grants to assist it in carrying out its duties (Section 22015(c)).
23. What are the most common concerns addressed by the Act? These are:
Cost accounting policies and procedures;
Informal bidding procedures; and
Accounting procedures review.
Cost accounting requirements for the Act follow those common to the construction industry. The informal bidding on public projects up to $200,000 is seen by agencies as an effective tool to expedite completion of small projects. While an accounting procedures review could potentially hold up a project for a minimum of 45 days pursuant to Section 22043(c)(1), these types of reviews have been rare in the Commission’s history.
24. Must an agency calculate an overhead rate to apply the accounting procedures? No. Cities with populations of less than 75,000 must assume an overhead rate equal to 20% of the total costs of the public project, including the costs of material, equipment, and labor (Section 22017(b)(1)). Cities with a population of more than 75,000 may either calculate an actual overhead rate or assume an overhead rate of 30% of the total costs of a public project including the costs of materials, equipment, and labor (Section 22017(b)(2)).
25. When a public entity opts into the Act, does the Act supersede other contracting legal requirements such as statutory requirements for performance bonds, prevailing wages, and certificates of insurance, etc.?
No. The Act supersedes only the bidding procedures used once a public agency has opted into the Act and has notified the Controller. All other contracting requirements of the PCC remain applicable.
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26. Can a public agency claim to be to be exempt from following all of the requirements in Public Contract Code by claiming it only has to follow the language and procedures within the Act?
No. The Act is part of the Public Contract Code; therefore, if the Act is silent on a particular matter, then the Public Contract Code applies on that matter.
27. If public agencies are not following the advertising requirements in the Act, will the Commission address those agencies? Can a complaint be brought to the Commission? Yes. Recent legislative changes have expanded the Commission’s authority to enforce provisions of the Act. The Commission may review complaints filed by interested parties when evidence is provided that:
The participating agency performed work after rejecting all bids, claiming it could do the work less expensively (Section 22042(a)).
The work performed exceeded the force account limits (Section 22042(b)). The work was improperly classified as maintenance (Section 22042(c)). A public agency did not comply with the informal bidding procedures set forth at Section 22034 (Section 22042.5).
28. Section 20112 specifically requires school districts to advertise twice for a two-week period, while Section 22037 requires advertising once, 14 days in advance of the date of opening of bids. How do participating school districts reconcile this conflict? When the Act is in conflict with any other section in the Public Contract Code, the Act shall supersede. The Act requires advertising once, 14 days in advance of the date of opening of bids. Districts participating in the Act may choose to maximize their outreach by advertising twice.
29. May a public agency contract separately for like work at the same site at the same time using the under $60,000 Force Account method?
No. Section 22033 states:
It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this article requiring work to be done by contract after competitive bidding.
Separating “like work” would be permitted only if the total of all the “like work” is less than $60,000. If the work is more than $60,000, it must be advertised and bid according to the provisions of the Act (i.e. bid informally if the total amount is less than $200,000; bid formally if the total amount exceeds $200,000).
30. May a public agency bid out two separate projects that occur at the same time and site, but are different types of work?
Yes. There is no violation if the work is competitively bid. If an agency wishes to use the negotiated or informal bidding processes, it must apply the appropriate limits to each of the projects. Each project must be separate in scope. Projects may not be separated by trade to avoid bidding. If the total of all jobs is greater than $60,000 then the informal or formal bid limits apply.
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31. Can an agency separately bid out for the materials and supplies on a project to avoid contractor markup and then bid out for the installation labor or perform installation with its own forces?
An agency may separately procure the materials and supplies for a project; however, all costs (materials, supplies, labor) of a project must be included in the project cost estimate to determine whether the project falls within the force account, informal bid, or formal bid thresholds.
In addition, if installation is performed by force account, an overhead rate must be applied to all direct costs of the project and included in the cost estimate. For example, if materials/supplies cost $50,000 to procure separately and the estimated labor cost to install is $25,000, the project could not be performed with force account, but would fall within the informal bid threshold because the total cost estimate is $75,000.
32. Must a value be assigned to the volunteer labor when the California Conservation Corps or another volunteer organization provides labor on a public project? No. Volunteer labor from volunteer organizations does not need to be included as a cost of a public project for bid limit purposes as long as no costs are associated with the volunteer labor.
33. By opting into the Act, does a public agency automatically bring all of its component divisions or departments into the Act?
Yes. When a public agency elects to become subject to the uniform construction cost accounting procedures, the entire legal entity is considered subject to the Act and no divisions or departments are exempt.
34. When a public agency opts into the Act, does it automatically bring all districts under control of its governing Board into the Act?
No. Special Districts, which are governed by a board of supervisors or city council, are subject only if a separate election is made for each special district.
35. PCC 22034 requires that participating agencies adopt an Informal Bidding Ordinance.
What do schools and special districts that cannot adopt Ordinances do to comply? Agencies that do not have the ability to adopt Ordinances should discuss Section 22034 compliance with their legal counsel.
36. Are change orders allowed by the Act, and if so what is allowable? What if a change order goes over one of the allowed thresholds?
The Act does not address change orders. Please consult with your agency’s legal counsel regarding any limitation on change orders that may apply to your agency. 8 | P a g e
Revised September 20, 2022
37. Is there any training related to the Act? If so, where can I find a list of where the training is offered?
SCO has information regarding the Act on the SCO/CUCCAC website, including the current Cost Accounting and Procedures Manual. Often, commissioners are willing to provide training, answer questions, and/or give a presentation in order to assist agencies in getting the full benefits of participating in the Act.
38. The Act states that public projects of sixty thousand dollars ($60,000) or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order. However, the Department of Industrial Relations (DIR) states any project over $1,000 has to pay prevailing wages. How do the Act and DIR guidance work together?
The Act and DIR are completely separate and govern different aspects of public projects.
The Act focuses on bidding related to public projects and DIR deals with wages paid by contractors on public projects. However, they may relate in that if prevailing wages are not paid on a public project, that could potentially impact the total cost of a project which would require a different bidding process utilized under the Act.
Additional inquiries and questions may be directed by email to [email protected], or by regular mail to:
State Controller's Office
Local Government Programs and Services Division
Local Government Policy Section
P.O. Box 942850
Sacramento, CA 94250
DISCUSSION AGENDA ITEM 5
SUPPORTING DOCUMENTATION ATTACHED
5. Discussion/Presentation Update on Water Rate Analysis AGENDA ITEM: Water Rate Analysis Preview
Date: May 14, 2024
________________________________________________________________________ At our next City Council meeting scheduled for May 28, 2024, we will continue addressing the Budget and there will be a presentation on the Water Rate Study. Samantha Ryan of RCAC will present the Water Rate Study options that she has been working on this year made possible by USDA grant funding at no cost to the Water Enterprise Fund.
Various options and factors can be addressed such as the:
Base Rate: What all water customers pay based on their category.
Consumption Rate: What all customers pay based on their water usage.
Possible categories: Currently there is an in-city and outside-city rate. Other possible categories can be based on meter size.
Attachment 1 is a memo from the Mitchell Law Firm titled “Water Service Fees.” A factor to consider is that from 2012 to 2017 a 2.5% COLA increase was added annually to water bills. However, since a water rate study was not completed since then, water customers have enjoyed a lower base rate that did not factor in a 2.5% increase for 6-7 years. Therefore, the base rate would have been 15-17.5% higher this year.
The Water Fund needs to cover the cost of Operation and Maintenance, plus have a reserve fund for future Capital Improvements to replace outdated equipment. In July of 2020, the City Council transferred $975,000 in Water Operating Funds to Water Reserves.
Since then, the Water Fund has used Water Reserves to supplement the Water Operating Fund (sort of a reverse transfer).
The City Council has committed to reimburse the Water Fund with General Fund Revenue to cover the additional cost of Coleman Engineering above the cost of operating the Water Plant with licensed City staff. As a result, the City will transfer $300,000 to the Water Fund.
Additionally, in June, the City Council could consider additional funds as a loan to the Water Fund if necessary and available.
After completion of the Water Rate Study and choice of a rate option by the City Council, a Proposition 218 process will take place. The City will mail out a notice to water customers of the proposed rates and hold a public hearing after 45 days to assess the public’s input.
THE MITCHELL LAW FIRM, LLP
CLIFFORD B. MITCHELL (1927 - 2010)
PAUL A. BRISSO*
RUSSELL S. GANS
NICHOLAS R. KLOEPPEL
RYAN T. PLOTZ
AMY A. HUNT
KAREN J. ROEBUCK, Senior Associate
SHAE N. McKNIGHT, Associate
ATTORNEYS AT LAW
426 FIRST STREET
EUREKA, CALIFORNIA 95501
www.mitchelllawfirm.com
Established 1915
TELEPHONE (707) 443-5643
FACSIMILE (707) 444-9586
P.O. DRAWER 1008
EUREKA, CA 95502
WILLIAM F. MITCHELL (Retired)
JOHN M. VRIEZE (Retired)
EMERY F. MITCHELL (1896 - 1991)
WALTER J. CARTER (1949 – 1993)
R.C. DEDEKAM (1929 – 2011)
NANCY K. DELANEY (1950 – 2022)
* Of Counsel
February 6, 2024
TO: Eli Naffah
FROM: Russ Gans/Shae McKnight
CLIENT: City of Trinidad
RE: Water Service Fees
I. BACKGROUND
The City of Trinidad Water Department (“City”) currently serves customers outside of City limits. Customers outside city limits are charged a different rate than customers within the limits for water use. The City does not charge increased rates for excess water use. Customers who use more water are not charged at a higher rate.
II. ISSUE
Can the City charge more for water services to customers located outside of City limits? Can the City charge for water services based on usage?
III. DISCUSSION
Water users can be charged at different rates within a district's service area. Government Code Section 66013 states, in part, “when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the February 6, 2024
estimated reasonable cost of providing the service for which the fee or charge is imposed.” If the service fee does not exceed the actual cost of the service, then customers outside of the City limits can be charged at a higher rate than customers within City limits. The City of Arcata charges customers located outside city limits an increased monthly base rate but the same consumption rate as customers within city limits. Customers outside of city limits are charged almost an additional $6.00 a month. The City can ultimately decide how to increase the rates but must keep the fee less than the cost of providing the service.
The City can also charge based on use. Water Code Section 372 states, "A public entity may employ allocation-based conservation water pricing." To comply with the Code, billing must be based on metered water use, a basic use allocation must be established for each customer that provides a reasonable amount of water for the customer's needs, a basic charge must be imposed for all water used within a customer’s basic use allocation, and a conservation charge must be imposed on all increments of water used over the basic use allocation. (Wat. Code Section 372.) Using an allocation-based rate structure will allow the City to charge customers who use more than their allotted amount of water.
IV. CONCLUSION
The City can charge customers outside the City limits more for water services, but the fees cannot exceed the cost of providing the services. Additionally, the City can charge on a use basis but must meet all the criteria under the Water Code before doing so.
DISCUSSION AGENDA ITEM 6
SUPPORTING DOCUMENTATION ATTACHED
6. Presentation/Update regarding the FY2024 Budget Preparation Timeline
DISCUSSION/ACTION AGENDA
Date: Tuesday, May 14, 2024
Item: Presentation/Update regarding the FY2024 Budget and Upcoming FY2025 Budget Preparation Timeline.
Background: The annual budget is a spending plan that is intended to reflect goals and priorities of the City Council, and to keep up with the increasing pressure of State and Federal policies that set the framework for government operation. Both forces compete for resources, and the balance between mandatory and discretionary spending continues to tilt in favor of mandatory.
Every spending action has the potential to have side effects. Having to react quickly to employment needs, inflation, and social dynamics during the Covid-era has brought subsequent growing pains to City government operations that will demand attention in the coming year, beginning now.
As the 2025 budget process unfolds we will examine what resources exist that can be used to navigate higher government red tape, fine-tune the personnel structure, stay on task with long-term priorities, and meet the growing needs of the city based on current and forecasted economic trends.
The first step to kick-off the 2024-2025 budget season is to look back at the Big Picture Summary from the 2024 budget adoption and review the tools used construct the budget every year.
The next step 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 reconciled financial statements received through December 31 2023, and April 30, 2024 and understand current fund balances.
2) Review significant highlights in spending (or not spending) and revenues in the primary departments. 3) Plot a course that will lead to an adopted budget by the regular meeting on June 11.
Proposed Action:
Review/Discuss the City’s fiscal activity through December and April, and set goals for the upcoming meetings to develop the 2024-2025 FY Budget.
Attachments:
- January 09, 2024 Mid-Year Budget Summary Report
- FY2024 Staff Organizational Chart
- FY2024 Budget Summary Narrative/Priorities from June 13, 2023 Budget Adoption Meeting - FY2024 Big Picture Summary
- December 31, 2023 reconciled financial statements
- April 30, 2024 financial statements included in Consent Agenda Item 2.
DISCUSSION/ACTION AGENDA
Date: Tuesday, January 09, 2024
Item: Discussion/Presentation regarding Mid-Year Budget Review Background: Public entities operate on the fiscal year cycle beginning July 01, and ending June 30. April and May signal the beginning of budget preparation season. July 01 is the deadline to adopt a budget spending plan. Periodically through the year it is fiscally responsible for governing boards to do a pulse check on revenues and expenses, and ensure the plan is on track. It makes sense to do this mid-year as it could identify unusual trends and allow time to course-correct as necessary.
The tools we use to develop the framework for the complex financial structure, check and balance it, and measure stress or successes to the system are as follows:
- Annual Budget adopted on or before July 01 each year. - Budget summaries and narratives included in meeting packets during budget preparation. - Detailed financial reports provided by the bookkeeper. - General Ledger (an extended excel spreadsheet detailing every, single transaction, in and out. - Annual Audit.
Included as attachments to this packet is everything but the general ledger and annual audit. The status of FY2023 Audit is still to be determined.
Budget Overview: The City’s budget consists of individual budgets within the following structure:
General Fund: Administrative, Public Works, Police, & Fire Restricted Funds: Water & Cemetery
Special Revenues: Gas Tax, Transportation (TDA) & COPS
Grants: Grant Funds are a vital source of revenue that helps fund critical infrastructure, and long-range planning.
General Revenue sources include Sales Tax, Occupancy Tax, Fees for Service, Rents and Franchise income, etc. These revenues are unrestricted.
Restricted Revenue is received for Water Service, Cemetery plot sales, Transportation and Gas Tax sources, COPS or Measure Z funding, etc. These revenues are restricted for use as per laws or legislation provided from each source.
The staff report from June 13, 2023 was a benchmark indicating the City’s thought process, using financial reports and forecasting to develop the spending plan for 2023-2024. Some of the highlights from that report included:
- Transitional period due to post-Covid economics may require dipping into reserves as costs to provide essential services become dynamic and uncertain.
- A prediction of deficit spending was based on under-anticipated revenue projections for the most volatile sources, such as Occupancy and Sales Taxes.
- Anticipate a Fiscal Year-end 2023 spending deficit in the Water Fund of approximately $300k, and another $280k or more in 2024 if a local staffing solution isn’t found to help stabilize consultant costs. leaving the reserve fund balance at a red-line level of approximately $300k. - Coupled with stabilizing soft-costs, Staff was directed to embark on the Water Rate Analysis to further stabilize advanced reserve spending.
Fiscal Year End 2023 (June 30, 2023) Preliminary, Un-Audited Conclusions:
Staff delivers FY2023 year-end information with caution, due to the June 30, 2023 statements yet to be audited.
Revenues: The preliminary results of the year-end financial statements suggest the City planned for General Fund deficit spending of $24,858, but ended up with a surplus of approximately $98,726 (see attached FY2023 Budget Summary, Budget to Actual, showing the variances in each resource by inflows and outflows.
It appears that the surge in Sales Tax revenue from the prior fiscal year (Covid influenced) stabilized by landing within the City’s historic and anticipated level the following year. Occupancy Tax revenue exceeded budget expectations, and surge in development activity yielded higher than anticipated permit fee revenue.
Expenditures: City did not spend as anticipated from the General Fund. Underspending, in this case, does not mean that the community did not receive the services or programs they expect. First, the underspending appears to be directly related to a prior year, high-level of City Attorney fees being carried forward in anticipation of similar level of activity in 2023, which didn’t materialize. Second, the City budgeted for supplemental private security that didn’t launch until the final few months of the fiscal year, thus translating to what can be considered “savings”.
Water Fund: Due to a severely under-budgeted line item for Contracted Services (Water Fund 6.01, Expense code 75300) the financial statement looks completely tilted. The revenue projections landed within 7% range, but expenses show an almost 58% negative differential. Due to an unanticipated staffing challenge, the City was forced to continue utilizing the services of an certified, licensed independent contractor, Coleman Engineering for the entire fiscal year, resulting in reserve spending in excess of the $300k anticipated.
Fiscal Year 2024 Staff Organizational Structure, Talking Points, and Successes Staffing: A staff organizational chart is included in the packet. It depicts staff titles and structure, based on the positions full-time equivalent (FTE). Currently the City employs approximately 9.25 FTE employees (based on a combination of full-time and part-time employees. Six employees are actual full-time and benefited.
The two administrative staff members are settling into their second year of service. One of the two positions were reclassified this year to more accurately reflect the responsibilities assigned, which falls in line with the budget year goal of staff realignment with the City’s priorities to promote accountability, longevity, and advancement.
Public Works recently hired a fourth maintenance tech that is also a T-2 Operator-In-Training, along with the Public Works Director. The part-time Public Works Maintenance tech is in training to obtain a Water Distribution Certification (D2).
After nearly 17 years of service, the Grants Director will be down-shifting from full-time to part-time in January 2024. Additional responsibilities have been allocated to the new Grant Administrator hired in April 2023 to maintain reliability and continuity in the Grant Department during the transition.
The Water Plant is still searching for an in-house T3 Chief Plant Operator. Currently secured by contracted staff from Coleman Engineering, the Water Department’s primary objective remains to provide quality and reliable drinking water that meets or exceeds Safe Drinking Water Standards set by the State of California. To do so requires a technically trained, licensed Treatment Level 3 Operator at the helm.
Over the last year the City has been focused on developing an Operator-In-Training team that so far has relieved a significant share of the expense related to having a contracted T-3 Chief Operator, by assisting the Chief as his “boots on the ground”, while they progress through their training and licensing program.
The objective is to relieve the Water Fund reserves of the high cost of contracted services before they are depleted, in conjunction with realigning the water rates to accurately reflect the cost of providing reliable and safe drinking water through in-house staffing, as soon as possible. Meanwhile, the Water Fund is currently under the microscope, operating into a third year of significant reserve spending.
Financial Statements are included in this packet, for all activity covering the period July 01-November 30. An easy scan of the primary funds (Revenue, Administration, Public Works, Fire, and Police) depict spending at or near 50% (midway through the year). With the exception of a few corrections staff will coordinate with the bookkeeper, overall the City is on track for another year in the black.
Concerns: The main funds currently under the microscope are the Water and Cemetery Special (or Restricted) Funds. Both are spending more than they’re taking in. The Water Fund, most impressively, followed by the Cemetery Fund which is due for a rate increase. A realignment of the Cemetery Fund rates will better position the fund to sustain itself into the future, but also minimize an alarming run-on Trinidad Cemetery space that allegedly has low rates partially to blame.
Conclusions: The General Funds are on track. Staffing is adequate, developing, and employees are becoming enriched with time served. Programs and services are expanding as planned. Public Works is developing cohesive teamwork. The Fire Department is serving the City, but also experiencing some growing pains. Public Safety has been enhanced, overall, with the supplemental private security company patrolling the City on a regular basis.
The Water Fund, however, continues to leak oil. Staff is working strategically to develop and recruit new operators, while ensuring safe drinking water is being provided to customers. The Public Works Department is doing a great job holding down the fort while the consultant operates plant controls. Staff is hoping that grassroots recruiting strategies will yield long-term, dedicated team members in the near-term.
The water rate study is underway and will be a challenging task before the Council in April. The results, however, will provide much needed stability to the Water Department before the end of the fiscal year that will help right the ship.
The cost of “keeping the lights on” continues to rise, and touch every aspect of public service. Although the City has been slow to react to the trends over the past 3-years, dedicated reserves have provided much needed stability during the transition that will allow a more articulate, calculated, justified realignment of fees to better position the City to sustain the desired programs and services into the future. This will continue to play out during the remainder of this fiscal year and into budget preparations for 2025, slated to being in April.
Recommended action: Presentation/Q&A Session only. No decisions anticipated.
FY2024 Staff Organization Chart:
City Manager (.75 FTE)
- City Clerk (1.0 FTE)
- Assistant Clerk (1.0 FTE)
- Project Manager/Admin Analyst (1.0 FTE) Admin: 3.75 FTE - Grant Administration Director (1.0 FTE)* Grants: 2.0 FTE o Grant Administrator I (1.0 FTE)*
*Grant Director position transitioning to part-time in January 2024 - Public Works Director (.75 FTE)
- Public Works Maintenance II (.50 FTE) Distribution Tech In-Training - Public Works Maintenance III (.25 FTE)
- Public Works Maintenance IV (.50 FTE)
Public Works: 2.0 FTE
- Chief Water Plant Operator (contracted position)
o T2 Water Operations Support (.25 FTE) T-2 Operator In-Training o T2 Water Operations Support (.50 FTE) T-2 Operator In-Training o T2 Water Operations Support (.50 FTE) T-3 Operator In-Training o T3 Water Operations Support (.25 FTE)
Water: 1.5 FTE
DISCUSSION/ACTION AGENDA
Date: Tuesday, June 13, 2023
Item: Discussion/Decision regarding Resolution 2023-05; Adopting the FY2024 City Budget Background: Two meetings were held in May to help pave the way to a final draft budget proposal on June
13. On May 23 staff presented various components of the budget structure, the overall health of the General Fund and Special Revenue Funds, how reserves will play a key factor in balancing the budget this year, and the anticipated challenges ahead.
Along with maintaining and enhancing current service levels provided to the City, the current draft of the 2024 Budget aims to provide a continued focus on transitional stability for the Water Department, a commitment to keeping public buildings maintained, and an alignment of staff responsibilities and wages to encourage upward mobility and retention. Staff emphasizes that this is a “working draft” that will need adjustments as the year progresses, and 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, 2022, along with projections for Fiscal Year ending June 30, 2023 were presented in summary formats for comparative purposes at prior meetings.
General Fund: It is still unclear how economic trends will affect Trinidad’s top two revenue sources, sales and occupancy taxes, which appear to be resilient. 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.
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, provide cash-flow support during large-scale grant construction phases, and to stabilize the budget in an emergency. Several of the following situations are examples of how the City may use the reserves this year if revenues fall below expectations; • The sudden increase in County Sheriff contract costs. • Supplement law enforcement with private security services. • Provide salary incentives to encourage employee retention with increased responsibility. • Measure Z Funding is unavailable for additional law enforcement coverage. • Cover increasing costs due to State of Federal mandates and regulations. • Emergency repairs to fragile infrastructure (coastal bluffs, roads, etc.) • Maintain public buildings and important city assets such as trails and recreation infrastructure.
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 2024.
Water Fund: The cost to operate the water treatment plant continues to rise. 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, 2022 the water system spent overspent approximately $273,000 more than it earned in water sales revenue. The deficit was anticipated and authorized by the Council due the lack of adequate T-3, in-house employees requiring private consultant oversight (soft costs).
At year-end June 30, 2023, the water system is expected to overspend approximately $300,000, leaving the leaving the reserve at 50% of what it was at its peak. City Management is developing a staffing strategy to hopefully relieve the private contracting service of a large part of their responsibility, thereby reducing costs significantly throughout the year.
At year-end June 30, 2024, the water system is projected to overspend an additional $280,000, leaving the fund balance at a red-line level (approximately $300,000) The budget includes a priority for management to begin a rate analysis immediately. The analysis will hopefully lead to rate revisions that will be implemented by the end of December 2023 addressing significant revenue short-falls.
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. 2024 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. Update the Water Rate Structure to reflect the true costs of operating a small water system in high demand.
7. Maintain and invest in public buildings, parks, and property.
8. Support community groups that enrich the community for locals and visitors, as they emerge from pandemic hibernation.
9. Continue promoting an inclusive dialog with Tribal Governments, and finalize the Government to Government policy to facilitate consultation on important topics of mutual concern.
10. Continue grant programs that will help the City satisfy several elements of the General Plan update.
Proposed action:
Field questions from Council, revise budget line items as necessary, and approve Resolution 2023-05; Adopting the FY2024 Budget.
2023-2024 General Fund Summary - Operating Revenue vs. Expenses REVENUE 2023 Budget Actual
General Fund Revenue Projection: $ 761,600 $ - *CIRA grants available as needed Cemetery Plot Purchases $ 15,000 $ -
Humboldt Sanitation Franchise Fees $ 11,000 $ -
TDA Transfer-In for TPW Labor $ 8,500 $ - *Reserve funds available as needed Total Revenue $ 796,100 $ -
EXPENSES
General Fund Admin $ 482,320 $ -
Public Works $ 169,526 $ -
Fire $ 54,350 $ - *Transition fund place-holder included Police $ 149,865 $ - *Private security option included
Cemetery $ 21,785 $ -
Waste Management $ 10,000 $ -
Total Expenses $ 887,845 $ -
Balance $ (91,745) $ - *Reserve funds dedicated to cover this Highlights:
General Fund Funds a significant portion of the following positions:
City Manager, City Clerk, Project Manager, Asst. Clerk & Consultants.
Provides staffing to meet increased regulations and higher government mandates.
Legal support to address ongoing litigation and employment challenges.
General service level increases with full-time staff.
Continued support of Library, Museum, Land Trust
Continued progress on the General Plan Update
Will require commitment to optimize fees for services to sustain.
Includes 4% pay increase for all employees.
Public Safety Contract renewal with HCSO for full-time 24/7 coverage Budget includes discretionary funds for private security Emphasis on enforcement of current laws and increased public safety challenges.
Public Works Includes (1) FT Public Works Supervisor, and (2) PT maintenance workers Includes new maintenance hire shared with Water Fund.
Provides support to HSIP and other grant funded construction Provides for City Engineer to oversee regional funding sources. $10,000 set aside for Trail Maintenance projects per Trails Comm.
Pays for ongoing, routine trail maintenance and supplies.
Pays for street lighting, routine building maintenance, and energy costs.
Priority to invest in capital improvement maintenance projects for Town Hall.
Includes 4% pay increase for all employees.
Water Fund Anticipates a slow transition from Contractor to City control Estimated deficit spending of $290,000.
Budget includes (1) Chief Operator, (2) Part-time T2 Operators.
Rate Analysis (Prop 218) & Continued Water System Consulting Drought Monitoring, Outreach, and Contingency Planning
Technical Support to the Water Advisory Committee
Luffenholtz Creek flow-monitoring.
$25,000 allocated for priority valve replacements
Significant rise in costs due to many factors.
Rate Analysis will be necessary to sustain costs and rebuild reserves.
Streets/Roads Special Revenue Funds (Gas Tax, TDA, RMRA) used as needed.
No special projects budgeted at this time, but funds are available.
TDA Funds in reserve can be transferred to General Fund to offset TPW labor.
Reserve Funding Town Hall Exterior Wash and Trim Paint, and deck repair.
Requiring council approval at a later date Town Hall Window Replacement Project - up to $57,000 paid with reserve funds Grant Projects
Fund Grant Award Grant
213 $ 160,000 SB2 Housing Element Planning Grant
214 $ 65,000 HCD Local Early Action Planning Grant (Promote Housing) 215 $ 200,000 LCP Update Grant 3 Coastal Commission
531 $ 440,000 Prop 68 Trinidad Community Coastal Resilience Planning 532 $ 799,600 HSIP Street Improvements
606 $ 5,079,090 SCDRP Tank & Pipelines
607 $ 2,000,000 MBDRP Intertie
533 $ 177,000 Per Capita (max eligible)
Rate Adjustments/Optimization 2% Transient Occupancy Tax Increase (from 10% to 12%) Water Rate Anaylsis
Cemetery Plots; Rate Analysis/Adjustment (25% estimated increase)… ...to help fund and secure future northern expansion.
Planning Admin Fee; 10%+ for in-house Staff time cost recovery Building Permit Fee Schedule Update
Bench Policy Implementation; (30) benches at $1k each
Big Picture / Future Planning Cemetery expansion to adjacent lot - Real Estate Purchase DISCUSSION AGENDA ITEM 7
SUPPORTING DOCUMENTATION ATTACHED
7. November 2024 City Election & Sales Tax Measure Update
DISCUSSION/ACTION AGENDA
Date: Tuesday, May 14, 2024
NOVEMBER 2024 CITY ELECTION CALENDAR (Updated May 14, 2024) February
• Acknowledgment that an Audit has not been conducted for FY2023. • Check-In on City Budget through December.
March
• Begin Fiscal Year Budget preparation.
• Discussion (Part I) regarding consideration of Sales Tax Extension, benefits/implications to the City in general, ballot measure language, termination date options, questions, staff homework, etc.
April
• Continue Fiscal Year Budget preparation.
• Discuss/Consider Sales Tax Extension (Part II), Implications on 2024-2025 Budget.
May
• Adopt Resolution calling for election on a proposal to extend the Sales Tax Increase. • Adopt Resolution requesting Election Consolidation with the County. • Continue FY 2024-2025 Budget preparations.
June
• Adopt FY 2024-2025 Budget
• Prepare/Present/Announce the upcoming election season calendar July
• Publish Election Notice for (2) Upcoming November Council Seats & Sales Tax Election • Candidate Nomination Period opens.
August
• Publish Arguments For, Against, and Rebuttals for Sales Tax Extension • Adopt Ordinance that will authorize the State Board of Equalization to implement the Sales Tax Extension should it pass.
• Filing period for City Council Candidate nominees closes August 10.
September
• No deadlines
October
• Publish notification of (2) upcoming Planning Commission vacancies November
• General Election, Tuesday, November 05, 2024.
December
• When County Elections results are certified, swear in new Council members, appoint Mayor, and re-distribute or confirm Committee/Commissionership assignments.