Trinidad City Council
May 28, 2024

City Council Meeting Agenda: 05-28-2024 Page 1
Posted: Friday, May 24, 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 28, 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: 872 8995 8006 Passcode: 129787 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. ADJOURNMENT TO CLOSED SESSION

1. Personnel Exception 54957 - City Manager Performance Evaluation IV. RECONVENE TO OPEN SESSION
V. APPROVAL OF AGENDA
VI. 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.

VII. 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. Second 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.

City Council Meeting Agenda: 05-28-2024 Page 2

2. Authorize Staff to Develop a Proposal for the Adaptation Planning Grant Program (APGP) to Submit to the State of California Office of Planning and Research (OPR), for Edwards Street and Public Access Resiliency and Adaptation Plan.

DISCUSSION/ACTION AGENDA ITEMS

1. Discussion/Decision to Appoint Two (2) Councilmember Representatives to Participate in a Government-to-Government Meeting with the Trinidad Rancheria.

2. Presentation/Discussion/Decision regarding 2024 Water Rate Study

3. Continued Discussion/Presentation regarding FY2024-2025 2025 Budget Preparation X. FUTURE AGENDA ITEMS
XI. ADJOURNMENT
CONSENT AGENDA ITEM 1

SUPPORTING DOCUMENTATION ATTACHED

1. Second 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.

CONSENT AGENDA
Tuesday, May 28, 2024 CC ________________________________________________________________________ Item: Second 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.

Summary: The Council approved the First Reading of Ordinance 2024-01 at the regular meeting on Tuesday, May 14, 2024. Two (2) readings of an Ordinance are required by Government Code for passage. The second reading must not be less than five (5) days from the first reading. After the second reading is approved, the Ordinance will become effective 31 days later. Staff recommends approval of the second reading, waiving the full reading of the ordinance and approving by the title shown above.

Following the effective date of June 28, 2024 staff will be able to solicit bids for service that fall within the criteria defined in Public Contract Code, Section 22034, which streamlines the process for public entities to hire service professionals to perform maintenance on public facilities. The informal bid process will be utilized, and the Council will reserve the opportunity to review, discuss, and authorize contract agreements that identify the need, budget, and results of informal bidding.

Background: As presented in the May 14 meeting packet, 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 Recommendation: Approval of the Consent Agenda represents affirmation of the following motion:
• Waive Full Second Reading of Ordinance 2024-01, 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 • Ordinance 2024-01; Informal Bidding Ordinance
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 the new Chapter 4 to Title 3 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: Kelly, West, Ladwig, Tuttle, Breckenridge
NOES: None
ABSENT: None
ABSTAIN: None

ATTEST:
________________________ _________________________
Gabriel Adams Cheryl Kelly
City Clerk Mayor
First Reading: Tuesday, May 14, 2024
Second Reading: Tuesday, May 28, 2024
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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
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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
CONSENT AGENDA ITEM 2

SUPPORTING DOCUMENTATION ATTACHED

2. Authorize Staff to Develop a Proposal for the Adaptation Planning Grant Program (APGP) to Submit to the State of California Office of Planning and Research (OPR), for Edwards Street and Public Access Resiliency and Adaptation Plan.

CONSENT AGENDA ITEM
Date: May 28, 2024
________________________________________________________________________ SUBJECT: ADAPTATION PLANNING GRANT PROGRAM
During the development of the Trinidad Coastal Resilience Action Plan, the project participants identified bluff instability on Edwards Street to be a high concern. Additional planning is needed understand and identify options to address bluff instability, soil saturation, and resulting impacts on infrastructure, public access and resources. Staff has identified an opportunity to apply to the State of California’s Office of Planning and Research’s (OPR) Adaptation Planning Grant Program (APGP) and has submitted a Grant Application Letter of Interest to the OPR. The City has been invited by OPR to submit a full proposal proposing an Edwards Street and Public Access Resiliency and Adaptation Plan.

Monday, June 3, 2024, is the deadline to submit the grant proposal, so we acknowledge that it may not be possible to submit the proposal by the deadline. However, the City should not dismiss this opportunity, as we have a viable project through our Coastal Resilience Action Plan that is being finalized in June.

The Adaptation Planning Grant Program will provide the City with a great opportunity to study and develop adaptation pathways to address vulnerabilities and hazards along the bluffs.

This grant would give the City and project partners the ability to develop, prepare, and adopt a mitigation strategy that will help us address the vulnerabilities we are facing, while also closing the gap on our ability to develop plans to build resilience and reduce future risk.

Staff Recommendation:
• Direct staff to develop a proposal for the APGP and submit to OPR if the deadline can be met.

Alternatives to Staff Recommendation:
• Take no action.

Attachments:
• Trinidad Letter of Interest to OPR
• OPR invitation to submit a full proposal.
• Notice of Funding Availability – Adaptation Planning Grant Program

Letter of Interest to OPR:

Edwards Street and Public Access Resiliency and Adaptation Plan Due to climate change, the City of Trinidad is facing vulnerabilities, but a capacity gap remains in developing and implementing plans to build resilience and reduce future risk. The City, through Prop 68, developed a Coastal Resilience Action Plan, and through engagement with our Tribal Planning Partners and the community, we identified bluff instability on Edwards Street to be a high concern. The City identified that studies need to be performed to identify the best mitigation strategies to decrease the impact of soil saturation, increase safe pedestrian coastal access, and a traffic study to identify routes that would decrease the impact traffic has on the bluff. If this area was to fail, private and commercial Onsite Wastewater Treatment Systems (OWTS), City stormwater facilities and parts of our water distribution infrastructure would be jeopardized, along with the loss of emergency access, cultural resources, and access to our harbor that provides recreational activities and supports our commercial fishing industry and businesses. We are hoping that with AGPG we can prepare and adopt a mitigation strategy that identifies a comprehensive range of mitigation actions and potential traffic circulation projects, to reduce the effects of natural hazards, while emphasizing public access and safety.
5/22/24, 4:41 PM
https://outlook.office.com/mail/inbox/id/AAMkADk0NGJkMWY1LTE…RIvVPxwIY6IGAAAAAAEMAAAsoB4VKN1hRIvVPxwIY6IGAAA%2BOBAVAAA%3D Page 1 of 2 [No Action Required]: APGP Pre-Application Status Update CA Gov. OPR - Adaptation Planning Grant Program <reply-to+d9b1dbbb-4629-4778- [email protected]>
Mon 5/20/2024 4:41 PM
To:Acather Trinidad <[email protected]>
Hi Angela,
Thank you for submitting a APGP Pre-Application Interest Form. We have reviewed your interest form and have determined that the proposed project appears to be an eligible activity. We look forward to reviewing your Main Application.

As a reminder, the Main Application window has been extended to Monday, June 3rd by 11:59 p.m. Upon submitting your Pre-Application Interest Form, you should have received access to the Main Application.

Best,
APGP Staff

REPLY VIEW SUBMISSION
Submission ID: 46562776
Sent by Submittable.
101 E Front St Suite 501, Missoula, MT 59802
Notice of Funding Availability
Adaptation Planning Grant Program
FY 2023 – 2024
February 16, 2024
TO: All Potential Applicants
FROM: APGP Staff, Governor’s Office of Planning and Research SUBJECT: NOTICE OF FUNDING AVAILABILITY – TOTAL OF $9,500,000 FOR PLANNING GRANT AWARDS FOR ROUND 2 OF THE ADAPTATION

PLANNING GRANT PROGRAM
The Governor’s Office of Planning and Research (OPR) is pleased to announce the availability of funding for Round 2 of the Adaptation Planning Grant Program (APGP) through this Notice of Funding Availability (NOFA). OPR anticipates that $9,500,000 will be available for competitive awards in Round 2. Funding for the APGP is provided by the General Fund.

Planning Grant Applicants must submit the “Pre-Application Interest Form” in order to receive the link to submit applications.

Program Summary
OPR through ICARP administers the APGP and received funds to implement the program through the provision of grants and staff support. The APGP Guidelines include relevant information for potential applicants, including the components and criteria that should be submitted in an application. Applications can request between $100,000 and $650,000 in total state funding for planning projects spanning twenty-four months.

Adaptation Planning Grant Program Round 1 NOFA January 6, 2023 _____________________________________________________________________________________

and Resiliency Program
Applicant Eligibility
Lead Applicants
Eligible Applicants may include, but are not limited to:

Local Public Entities Local public entities mentioned below applying for projects in their constituencies should partner with one or more community-based organizations. • Cities
• Counties
• Metropolitan Planning Organizations
• Joint Powers Authorities
• Regional Transportation Planning Agencies
• Regional Climate Protection Authorities
• Councils of Governments
• Congestion Management Agencies
• Groundwater Sustainability Agencies
• Climate Resilience Districts
• School Districts
• Special Districts (e.g., resource conservation districts, harbor districts, health care districts)
• Local or Regional Public Authorities
• Local or Regional Public Agencies
• Political subdivisions other than those mentioned above California Native American Tribes (Tribes) Tribes are not required to partner with a public entity or other Co-Applicants, nor required to submit any justification related to CoApplicant partnerships or lack thereof. • Federally recognized Native American tribes
• Non-federally recognized tribes that are on the contact list maintained by the Native American Heritage Commission (NAHC) for the purposes of Chapter 905 of the Statutes of 2004 (Pub. Resources Code, § 21073).

Community-based Organizations Community-based organizations should partner with a local public entity or Tribe as listed above to ensure that planning efforts funded can ultimately be implemented by local, regional, or tribal entities. • Non-governmental organizations
• 501(c)(3) nonprofit organizations
• Philanthropic organizations
• Foundations
• Legal entities such as organizations, collaboratives, networks, and projects that are fiscally sponsored by a non-profit or academic institutions and authorized and empowered to enter contracts and hold funds
Adaptation Planning Grant Program Round 1 NOFA January 6, 2023 _____________________________________________________________________________________

and Resiliency Program
Academic Institutions Academic Institutions should partner with at least one local public entity or Tribe and at least one community-based organization as listed above. • Academic Institutions include individual public California institutions of higher education (e.g., universities, community colleges, etc.).

Ineligible Applicants
The following entities are not eligible applicants.
• State Agencies
o This restriction applies to all regional conservancies, councils, and commissions listed on the State Agency Listing
• Federal Agencies
• For-Profit Entities
• Individual Community Members
Note: For-profit and individual community members can be subcontracted to provide research or other services. All ineligible applicants can provide letters of support.

Co-Applicants & Partnership
To be eligible for APGP, the Lead Applicant must partner with at least one Co-Applicant unless a justification is submitted. Partnering with more than one Co-Applicant is encouraged. Together, the Lead Applicant and Co-Applicant(s) partners are collectively referred to as "Applicants." In the application’s narrative section, Applicants must detail the partnership structure and the roles and responsibilities of each of the Applicants.

Public Entity Partnerships
If the Lead Applicant is a public agency, they must partner with at least one communitybased organization or California Native American Tribe. If establishing a community partnership is not feasible, Applicants should provide a written explanation as to why partnership isn’t feasible and/or a plan describing how they will engage with the community and create partnership opportunities.

Community-Based Organization Partnerships
If the Lead Applicant is a community-based organization, they must partner with at least one public entity or California Native American Tribe. If it is not feasible to obtain public entity or tribal support, community-based organization Applicants should explain why partnering with a public entity or tribe is not possible.

Adaptation Planning Grant Program Round 1 NOFA January 6, 2023 _____________________________________________________________________________________

and Resiliency Program
Academic Institution Partnerships
If the Lead Applicant is an academic institution, they must partner with at least one public entity or California Native American Tribe and one community-based organization. If it is not feasible to obtain public entity or tribal support, academic institution Applicants should explain why partnering with a public entity or tribe is not possible. If establishing a community partnership is not feasible, Applicants should provide a written explanation and a plan describing how they will engage with the community and create partnership opportunities.

California Native American Tribe Partnerships
Tribes are exempt from the requirements to partner with a public entity or other CoApplicants and are not required to submit a justification to demonstrate that such a partnership is not feasible.

Application Process
Planning grants will be evaluated and awarded through a competitive process. The APGP will use a two-phased application process for all Applicants. Applications will be submitted electronically on Submittable.

Phase 1: Pre-Application Interest Form
February 16, 2024, staff will release a Pre-Application Interest Form which constitutes the first phase of the application process. Prospective Applicants, comprised of a Lead Applicant and/or Co-Applicant(s), are required to complete the Form to indicate their intent to apply to the program and gain access to Submittable, an online application platform.

Completed Forms will be accepted on a rolling basis from February 16, 2024 – May 620, 2024. Completing the Form allows prospective Applicants to provide a broad overview of their proposed project, contact information, estimated budget, and request for Application Technical Assistance. APGP staff strongly encourage Applicants to fill out the form as soon as they are able and anticipate the form will take approximately 30 minutes to fill out. PreApplication Interest Forms are not scored.

Phase 2: Main Application
The main application form will be released via Submittable, an online application platform, to all prospective Applicants who completed the Phase 1: Pre-Application Interest Form. All application materials are due by 11:59 p.m. (PT), June 3rd, 2024. All applications and submitted materials are subject to the Public Records Act (Gov. Code, § 7920.000 et seq.) requirements and certain information may be publicly disclosed pursuant to those requirements.

Below is a summary of the Main Application components to be submitted on Submittable:
• Project Vision and Description Narrative
• Community Need and Adaptive Capacity Narrative
• Co-Benefits Narrative
• Community Partnership Narrative
Adaptation Planning Grant Program Round 1 NOFA January 6, 2023 _____________________________________________________________________________________

and Resiliency Program
• Workplan containing clear timelines, discrete tasks, and detailed deliverables. • Budget containing sufficient detail, broken down by task and line item. • Letters of Support
o One letter of support from each Co-Applicant on the project. o Up to five letters of support from the local, and/or regional communities, CBOs, elected officials, and appointed leaders. These letters can include community partnership justification and approval, budget justification and approval, etc.

Application Review Process
APGP staff will first evaluate applications to ensure that they are both eligible and complete.

Ineligible or incomplete applications will not proceed to the next step in the review process.

Applications that are found to be eligible and complete will proceed to scoring. The staff and an interagency review panel will evaluate applications using the scoring criteria below.

Applicants will receive a single score out of 90 points. Top scoring applicants will be invited to a finalist interview scored out of 10 points. APGP staff will recommend awards based on these scores. Thereafter, OPR will make final awards.

Application Support
Technical Assistance (TA)
To aid the development of competitive Proposals, APGP will provide application TA to eligible Applicants through a third-party provider (Civix). Depending on the volume of interest received, OPR will prioritize Applicants from Funding Target communities (including California Native American Tribes, Disadvantaged Communities (DAC), and Small and Rural Communities only) for application TA. Applicants interested in being considered for Application TA should submit the Pre-Application Interest Form as soon as possible and by March 18, 2024 to be considered for priority technical assistance. Technical assistance requests will be accepted on a rolling basis after this time.

Please note that receiving Application TA does not guarantee that an Applicant will be awarded an APGP grant.

Application Webinars
Application webinars will be available via the internet (Zoom) and phone call. Dates, times, and locations will be announced and listed on the APGP webpage. Staff will post recordings of all general audience webinars on the APGP webpage.

APGP staff will provide support to individual applicants through office hours and email.

Questions
Direct questions to ICARP staff through the contact information listed below:

Integrated Climate Adaptation and Resiliency Program (ICARP) Adaptation Planning Grant Program Round 1 NOFA January 6, 2023 _____________________________________________________________________________________

and Resiliency Program
Governor’s Office of Planning and Research
1400 Tenth Street Sacramento, California 95814
Telephone: (916) 758-0597
E-mail: [email protected]
Applicants may ask questions during application webinars or submit written questions via mail or electronic mail. APGP staff will offer drop-in technical assistance office hours and the opportunity to meet 1:1 to discuss application questions throughout the entire application period. Technical assistance will be limited to questions about the guidelines and application process; staff will not be able to answer questions regarding the competitiveness of any applicant or a proposed project. ICARP will respond to all questions, including all questions raised in office hours and 1:1 meetings, with a high-level questionand-answer document that will be posted on the APGP webpage and shared with all PreApplication Interest Form respondents and announce the release of this document through ICARP e-blasts. Any verbal communication with ICARP staff concerning this solicitation is not binding on the State and will in no way alter a specification, term, or condition of the solicitation. Therefore, all program-related questions should be directed in writing to assigned ICARP staff using the contact information above.

Other Terms and Conditions
State Prevailing Wages
Program funds awarded under this NOFA are subject to State prevailing wage law, as set forth in Labor Code Section 1720 et seq. and require the payment of prevailing wages unless the project meets one of the exceptions of Labor Code 1720 (c) as determined by the Department of Industrial Relations. Applicants are urged to seek professional advice as to how to comply with State prevailing wage law.

Disclosure Application of Information
Information provided in the Planning Grant applications will become a public record available for review pursuant to the Public Records Act. As such, any materials provided will be disclosable to any person making a public records request. Applicants should use discretion in providing information that is not specifically requested, including, but not limited to bank account numbers, personal phone numbers and home addresses. By providing this information in an application, the applicant waives any claim of confidentiality and consents to the public disclosure of all submitted material. Awarded applications will be posted on the OPR website.

Adaptation Planning Grant Program Round 1 NOFA January 6, 2023 _____________________________________________________________________________________

and Resiliency Program
Right to Modify or Suspend
OPR reserves the right, at is sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including without limitation, the amount of funds available hereunder.

If such an action occurs, APGP staff will notify all interested parties via email and will post the revisions to the APGP website.

Conflicts
In the event of any conflict between the terms of this NOFA and either applicable state or federal law or regulation, the terms of the applicable state or federal law or regulation shall control.

Resources and Questions
Information about the APGP, including the Program Guidelines, application resources, technical assistance, and other resources can be found at the following website:
https://opr.ca.gov/climate/icarp/grants/adaptation-planning-grant.html.

Questions may be directed to the APGP by email at [email protected].

DISCUSSION AGENDA ITEM 1

SUPPORTING DOCUMENTATION ATTACHED

1. Discussion/Decision to Appoint Two (2) Councilmember Representatives to Participate in a Government-to-Government Meeting with the Trinidad Rancheria.

AGENDA ITEM: Appoint 2 Council Members in response to a request by the Trinidad Rancheria for a Government-to-Government Consultation
Date: May 28, 2024
________________________________________________________________________ ANALYSIS:

Per the City’s Government-to-Government Consultation (G2G) Policy, two Council Members can be appointed as an Ad-Hoc Committee for a G2G. The Trinidad Rancheria has requested a G2G regarding the Tribal Harbor Properties. The request for a meeting was made on May 8, 2024.

ACTION:

Appoint two Council Members to an Ad-Hoc Committee for a Government-to-Government Consultation with the Trinidad Rancheria.

ATTACHMENTS:
• Letter from Tribal Chairman Sundberg to Mayor Kelly, May 8, 2024 • Trinidad Rancheria Harbor Properties Held in Trust
May 8, 2024
Mayor Cheryl Kelly
City of Trinidad
PO Box 390
Trinidad, CA 95570
Subject: Request for Government Consultation—Trinidad Rancheria Tribal Harbor Properties Dear Mayor Kelly,
On behalf of the Cher-Ae Heights Indian Community of the Trinidad Rancheria (Trinidad Rancheria) Tribal Council, we are requesting formal Government to Government Consultation regarding the Tribe’s Fee to Trust acquisition of the Harbor Properties. We are pleased to announce that our Tribe has successfully completed a multi-year fee-to-trust land acquisition process for the Trinidad Bay harbor properties. We celebrate our self-governance and the acquisition of land that is of historical and cultural significance to our Tribe and we would like to thank you for attending our Fee to Trust signing ceremony.

We value our relationship with the City of Trinidad, and are grateful for the improvement in our communication and collaboration over the past few years, especially as it relates to our partnership on your climate resiliency efforts. We affirm the need for ongoing respectful and meaningful government-togovernment consultation. As the original stewards of these local lands and waters of shared interest, the Rancheria seeks to sustainably manage and conserve the marine fish, wildlife, and plant resources and habitats that reside within our trust land and the jurisdiction of the City of Trinidad. We understand that the City of Trinidad may have proposed activities related to coastal resiliency, emergency preparedness, maintenance of public grounds, access, and recreation (including areas around Trinidad Head and lands at the waterfront), and more, that could impact the Tribal Harbor Properties. We are requesting open, transparent, and shared decision-making to ensure that the activities of the Rancheria and the City of Trinidad are for the mutual benefit of our respective governments, local communities, and beautiful harbor.

With this land now in trust, we kindly request Tribal, federal, and state government representatives to engage in formal government consultation to discuss the harbor, pier, or facilities of the Tribal Harbor Properties. Please contact Chief Executive Officer, Ms. Jacque Hostler-Carmesin, via email or phone:

[email protected] and 707-677-0211 (extension 2736).

We appreciate your favorable consideration of these significant and celebratory updates and look forward to our upcoming consultation.

Respectfully,
Garth Sundberg
Tribal Chairman
Trinidad Rancheria Harbor Properties Held in Trust
Our Stewardship of the Ocean
The Cher-Ae Heights Indian Community of the Trinidad Rancheria (Trinidad Rancheria) is a federally recognized Tribe located in northern California. Our members are primarily Yurok People, and our lands are located less than a mile from Trinidad Bay. As a sovereign Tribal Nation in Humboldt County, California, the Rancheria has been of service to the northern California community as owner and operator of the Trinidad Bay harbor and pier since 2000. Our Tribe has played an important role in protecting our coastal ocean and its natural resources as well as celebrating the bountiful cultural, ecological, recreational, educational, and commercial opportunities that the harbor provides locals and tourists.

A few examples of how our Tribe has served the ocean community include:
 Advocating for Trinidad’s fishing community during the Marine Life Protection Act process.  Reconstructing the pier to increase its safety and recreational opportunities, as well as protect the giant kelp forests within the Trinidad Head Area of Special Biological Significance through stormwater pollution mitigation and improved water quality.  Constructing a wastewater treatment plant and public restrooms to reduce bacterial contamination at the Trinidad harbor and beach.
 Maintaining public accommodations such as the pier, parking, a boat launch, bait shop, and restrooms.
 Researching marine species of cultural, ecological, and economic importance as part of a Working Group of Tribal, academic, and federal partners to increase the resilience of Tribal fisheries and management to climate change.
 Establishing the first Indigenous Marine Stewardship Area in the United States in partnership with the Resighini Tribe of Yurok People and Tolowa Dee-ni' Nation.

Establishing the Trinidad Bay Tribal Harbor District (LLC) With this land now in trust, we are engaged in strategic planning to work towards establishing the Trinidad Bay Tribal Harbor District (LLC). The Trinidad Bay Tribal Harbor District (Harbor District) will honor our Tribal sovereignty, support the conservation of the cultural and ecological resources of Trinidad Bay, and serve the diverse needs of the Humboldt County community. Our Tribe remains dedicated to ensuring the pier, harbor, and surrounding beaches are safe, accessible, and provide enjoyment for all. We are currently working with our Legal Counsel to develop ordinances and policies.

Introducing Our New Marine and Climate Resiliency Program We established our newest program— the Marine and Climate Resiliency Program— within the Natural Resources Department in 2023. The vision for the program is to co-manage the Tribe’s ancestral coastal and marine environment and resources for the sustainability and resiliency of local ecosystems and the community using Traditional Knowledge. Our mission is to protect, restore, and sustainably co-manage resources to achieve healthy and diverse ecosystems, sustainable fisheries, economic viability, and generational prosperity. The Tribe will fulfill this mission through community-driven marine stewardship, integration of Traditional Knowledge with Western science, attainment of Tribal subsistence harvest, and strong relationships with Local, State, National, and Tribal Nations. We encourage you to visit our website to learn more about our Tribe’s science, policy, planning, and management efforts to protect and preserve our natural resources. This work is intimately related to how our Tribe will continue to responsibly manage the Harbor District.

DISCUSSION AGENDA ITEM 2

SUPPORTING DOCUMENTATION ATTACHED

2. Presentation/Discussion/Decision regarding 2024 Water Rate Study As requested by the City Manager, included in the packet is the overview summary of the initial Water Rate Study prepared by RCAC (approximately 22 pages).

The full report (33 pages) is available on the calendar page of the City website for this meeting:
https://www.trinidad.ca.gov/city-council/meeting/city-council-second-regular-meeting Upon review and acceptance by the Council, the final report will be included in the June 11 regular meeting packet and any subsequent meeting packet leading up to the Prop 218 hearing process.

City of Trinidad
Overview of the
Initial Water Rate Study
Rural Community
Assistance Corporation

This document was prepared in May
2024 through funds provided by
United States Department of
Agriculture
2 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad May 22, 2024
Eli Naffah
City Manager
City of Trinidad
409 Trinity St
Trinidad, CA 95570
RE: Overview of the Initial Water Rate Study
Dear Mr. Naffah,
As you know RCAC and City staff have been working on the water rate study for the past year made possible by USDA grant funding at no cost to the Water Enterprise Fund.

Rural Community Assistance Corporation (RCAC) is pleased to submit this Overview of the Initial Water Rate Study (Overview) for the City of Trinidad. The Overview is to be included in the City Council packet for the May 28th, 2024, meeting, with the initial water study report being made available on the City website for customers and other interested parties to review in full.

RCAC will review the initial water rate study through a presentation at the May 28th, 2024, City Council meeting. After hearing comments and concerns from Council and the public, RCAC will finalize the rate study report. The finalized rate study report will be presented to the Council at a future City Council meeting as an action item. At that time, the City Council may select a rate option and proceed with the Proposition 218 process and hearing.

Sincerely,
Samantha Ryan
RCAC | Community & Environmental Services
Assistant Field Manager
(707) 572-7465 | Eureka, CA
www.rcac.org
3 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad Contents
1 Executive summary ......................................................................................................................................4 2 Water system basic statistics.......................................................................................................................7 3 Rate options...............................................................................................................................................10 4 Recommendations......................................................................................................................................17 5 Appendices.................................................................................................................................................18 4 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad 1 Executive summary
RCAC conducted this water rate study on behalf of the City of Trinidad to evaluate the City’s financial ability to operate and maintain their water system for the next five years and collect the necessary reserves for emergencies and capital improvements. RCAC analyzed actual data for fiscal year ending in 2023 (FYE 2023) and budgeted data for FYE 2024 to set rates for FYE 2025-2029.

The industry standard is to conduct a water rate study every five years to ensure revenues are covering expenses and costs are being applied to customer classes in a manner consistent with current Proposition 218 case law. The City’s current water rates were established in January 2012, through the adoption of Resolution 2012-01. The resolution set annual rate increases through FYE 2017. The resolution included a 2.5% rate increase per year, that the City Council chose not to implement in certain years between 2012 and 2017.

Since the last water rate increase in 2017, inflation has increased approximately 25 percent. The water fund’s operating revenue has been struggling to cover operating expenses since FYE 2019. Significant challenges were seen in FYE 2023, when the City hired an outside engineering firm to operate its T3/D1 water system. A water rate increase is being recommended to ensure revenues cover current expenses and to get the City closer to collecting the true cost of providing safe drinking water.

Typically, RCAC suggests that a water system collect revenue from its customers annually to cover the following:
• Annual Operating & Administrative Expenses – the cost to operate the water system on a yearto-year basis. • Operations & Maintenance Reserves – a certain amount per year until three times the expenses during a billing cycle is on hand.
• Emergency Reserves – a certain amount per year until the cost to replace the most critical equipment, typically a well pump, is on hand.
• Debt Reserves (if necessary) – a specific amount required by certain funders when receiving a loan.
• Capital Reserves – the average annual rehabilitation and rehab budget.

For the City of Trinidad to collect the suggested reserves above, it would require more than a 100% increase in both the current base rates and usage rates (even when assuming a robust grant program).

RCAC and City staff considered revenue requirements of the water system and the affordability to the City’s water customers and are presenting three rate options for consideration that keep base rate increases for ¾” meters and usage rate increases to below 75% in FYE2025. These rate options are to ensure annual operating and administrative costs are recovered through customer rates and to ensure that by the end of FYE 2029, the water system has approximately $240,000 in reserves. It is important for a public water system to have reserves so it can fund capital replacements and improvements as needed, and as state and federal funding is available.

RCAC worked with City staff to allocate costs and determine three rate options to present to the City Council, for Council to then decide which rate option best fits the City’s policies and preferences. The rate structure recommended by RCAC allocates costs by:
5 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad

1. Establishing a variable base rate by meter size- calculated using meter equivalency ratio charges (flow capacity, meter cost, fire demand) and flat rate customer charges as described in AWWA’s M1 Principles of Water Rates, Fees, and Charges.

2. Charging a uniform usage charge – where the same dollar amount is charged per volume of water used.

The other rate options presented today allocate costs by:

1. Continuing a variable base rate by location - inside city limits or outside city limits.

2. Charging a uniform usage charge – where the same dollar amount is charged per volume of water used.

The rates recommended by RCAC are:

RCAC Recommended Water Rates - Rate Option 3
Standard Rates (Inside & Outside Customers)
Meter Size 2025 2026 2027 2028 2029
3/4 $63.44 $69.72 $76.72 $84.46 $93.02
1 $85.03 $92.26 $101.00 $110.91 $122.04
1 ½ $120.33 $131.73 $144.71 $159.16 $175.21
4 $602.40 $667.14 $735.45 $809.73 $891.01
Rate per 100 CF $5.54 $5.93 $6.35 $6.99 $7.71
With these rates, the average inside residential customer will see an increase of $23.81 per month in FYE 2025 while the average outside residential customer will see an increase of $6.90 per month.

Customers with larger meters will see a larger increase in the first year due to incorporating meter equivalent ratios in the base rate calculations, as described in AWWA’s M1 Principles of Water Rates, Fees, and Charges. FYE 2026 through FYE 2029 will vary from 7-11% for all meter sizes and water usage charges. This can be seen visually in the following percent change tables.

Rate Option 3 - Percent Change
Inside Customer Percent Increases
Meter Size 2025 2026 2027 2028 2029
3/4 40% 10% 10% 10% 10%
1 88% 9% 9% 10% 10%
1 ½ 166% 9% 10% 10% 10%
4 1232% 11% 10% 10% 10%
Rate/HCF 25% 7% 7% 10% 10%
Outside Customer Percent Increases
Meter Size 2025 2026 2027 2028 2029
3/4 12% 10% 10% 10% 10%
1 50% 9% 9% 10% 10%
1 ½ 113% 9% 10% 10% 10%
4 965% 11% 10% 10% 10%
Rate/HCF 0% 7% 7% 10% 10%
6 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad The affordability of water service to residential customers is an important metric to monitor. It is calculated as a percent of median household income (%MHI). The calculation assumes 600 cubic feet of monthly water usage per residential connection and $76,705 as the MHI for City customers (Source:
2020 US Census for Trinidad). The % MHI for the water rates are as follows:
2025 2026 2027 2028 2029
Inside 1.51% 1.65% 1.80% 1.98% 2.18%
Outside 1.51% 1.65% 1.80% 1.98% 2.18%
Affordability criteria
The State Water Resources Control Board drinking water needs assessment recognizes two thresholds when it comes to affordability. A %MHI between 1.5% - 2.49% is a medium-risk, while a %MHI above 2.5% is a high-risk scenario. The Environmental Protection Agency recognizes that water begins to become unaffordable at 2.5% MHI.

Further details on this rate option as well as the two other rate options can be found in Section 3 – Rate Options.

Items to consider when managing a water utility fund include :
• Successful utilities are those that strive to be transparent. In day-to-day operations, a water system should strive to promote its services (highlights and the low points), and continuously educate residents on why it is necessary to raise and adjust rates. • Collecting for the true cost of water includes annual operating and administrative expenses as well as the funding of reserve accounts so that a water system can provide reliable, safe drinking water.
• Every year revenues versus expenditures should be reviewed to ensure that the rates cover all costs to the system. If they do not, a rate study should be considered. • Maintaining reserve policies aids in transparency, ensures the true cost of water is collected through water rates, and guides the annual review of revenues versus expenditures. • If possible, CIP reserves should be moved to and maintained in the highest interest-bearing accounts available to offset inflation unless the cost of doing so is more than the interest earned on the account.
• Conducting rate studies every five years helps to stabilize water rates for customers in the longterm. 2 Water system basic statistics
Community
The City of Trinidad is in Humboldt County on the Northern Coast of California about 20 miles north of the City of Eureka. The City has a population of about 332 and its water service boundary serves approximately 1,072 people through 326 service connections.

The incorporated city is overseen by a five-member city council, where council members are elected to four-year terms. The City is managed by a city manager that oversees several departments, including the water department.

The water department maintains a public water system for residents, businesses, and public users within the City limits and for many customers adjacent to the City. The water treatment facility runs continually to provide water that meets state and federal standards at a reasonable cost to its customers. The water distribution system is older in many areas, but the staff works cooperatively to assure that any leaks are detected and repaired as quickly as possible. This includes periodic meter testing for residents as needed.

The system also includes two water tanks that help to control pressure, provide a back-up supply in periods of high demand, and meet the fire flow requirements when emergencies arise. 8 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad There is a limited demand for new water connections due to the small amount of urban growth that is experienced in the City on an annual basis. The City has a policy to allow limited new connections outside City limits.

Water rates are set in a manner to meet the ongoing operational costs, retire any debts that the system experiences, and to provide an ongoing reasonable reserve fund for emergencies and system improvements.

The City of Trinidad is currently being provided licensed water treatment services through an interim contract with Coleman Engineering.

System description
The City pulls water from Luffenholtz Creek, about two miles south of the City. The City is authorized to extract 251 gallons per minute (gpm) out of the creek but must reduce the usage when the creek’s flow is less than 385 gpm. The City also holds water rights to extract 40.4 gpm out of Mill Creek, north of the City, but this would require construction of intake and related infrastructure.

The City completed a water system upgrade in 2014, which included the installation of new water pumps, a settling filtrations system, and other minor improvements. After being treated and chlorinated, water is stored in two 150,000-gallon redwood tanks before being distributed to customers through over 6 miles of pipeline. The distribution system is aging, and the City is dealing with water losses of 24-31 percent due to leaks.

Customer water use statistics
The City serves water to approximately 1,072 people through 326 connections. This rate study looked at account information and water usage for FYE 2022.

While residential customers make up 79.8% of the total number of accounts, they only account for

31.3% of the total water usage.

Account Type Average Number of
Active Accounts
Percent of
Total Accounts
Annual Usage
(cubic feet)
Percent of
Total Usage
Residential 260 79.8% 689,642 31.3%
Non-Residential 66 20.2% 1,508,931 68.6%
Total 326 100.00% 2,198,573 100.0%
Some non-residential customers have larger water meters that allow for higher usage. Larger meters in the City use more water than the average ¾” meter, which can be seen when the percent of total accounts for each meter size is compared to the percent of total usage for the corresponding meter size.

Account Type Average Number of
Active Accounts
Percent of
Total Accounts
Annual Usage
(cubic feet)
Percent of
Total Usage
¾” Meter 317 97.2% 1,874,112 85.2%
1” Meter 7 2.2% 224,531 10.2%

1.5” Meter 1 0.3% 14,210 0.7%
4” Meter 1 0.3% 85,720 3.9%
Total 326 100.00% 2,198,573 100.0%
9 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad When the water usage of inside city limit customers versus outside city limit customers is compared, the percent of total accounts in a customer class is similar to the percent of total usage in that customer class.

Account Type Average Number of
Active Accounts
Percent of
Total Accounts
Annual Usage
(cubic feet)
Percent of
Total Usage
Inside City 225 69.0% 1,594,274 72.5%
Outside City 101 31.0% 604,299 27.5%
Total 326 100.00% 2,198,573 100.0%
Current water rate structure
The City’s current water rates were established in January 2012, through the adoption of Resolution 2012-01. The resolution set annual rate increases through FYE 2017. The resolution included a 2.5% rate increase per year, that the City Council chose not to implement in certain years between 2012 and 2017.

The City has a variable base rate based on location (inside vs outside city limits) and a variable usage rate based on location. The current rates are:

Current Monthly Charges
Standard Rates
Monthly Base Rate* Usage Rate (per HCF)
Inside City Limits $ 45.23 $ 4.42
Outside City Limits $ 56.54 $ 5.54
Future population and usage projections
Any change in population numbers or water usage can significantly affect the revenue from water sales.

The City is not anticipated to grow and water usage is expected to remain similar for the timeframe of this five-year rate study. Based on data in the Municipal Service Review, a growth factor of 0.2% was applied each year to capture the expected growth in the City. In addition, a conservation factor was applied to customer water usage. This conservation factor is designed to capture the reduction in usage that typically occurs after a rate increase. It is assumed that total water usage will reduce 5% in the first year as customers feel the effect of the new rates and slowly return to normal usage (1% per year) after customers have adjusted to the new rates.

The Trinidad Rancheria (a large, outside city limit customer) is conducting a study to see if water could be provided by another public water system in the area; Humboldt Bay Municipal Water District (HBMWD). If this mainline extension is feasible and the Trinidad Rancheria transfers to HBMWD water service, the City of Trinidad’s revenue could be reduced 1.6% - 3.2% or $6,000-$12,000 annually. City revenue may be reduced further if additional outside customers choose to transfer to HBMWD service as well. This possibility was not investigated as part of this rate study since planning and construction of the project is expected to extend beyond the time frame of this rate study. The City should re-evaluate their water rates if this extension occurs prior to FYE2029. 10 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad 3 Rate options
Rate options overview
The following three rate options are being presented to the City Council for consideration. The options differ in rate structure and assumptions made regarding funding from the City’s General Fund. Rate Option #1 is considered unaffordable based on the %MHI.

While keeping rates affordable can be a goal of any city council or water system board, a responsibility of all city councils and water system boards is to collect rates that cover the true cost of providing water, including capital reserves. Not collecting the true cost of water puts the water system’s infrastructure and future in jeopardy.

A summary of the rate options are:
• Rate Option #1 (RO1) – Is the most expensive option for customers because it does not incorporate a $300,000 gift from the general fund and a $300,000 loan from the general fund. It maintains the City’s current base rate structure and after a 40%-75% increase in charges in FYE 2025, has an 8% increase in years FYE 2026-FYE 2029. • Rate Option #2 (RO2) – Maintains the City’s current base rate structure and includes a $300,000 gift from the general fund and a $300,000 loan from the general fund to keep rates more affordable than RO1. After a 6%-32% increase in charges in FYE 2025, this option has a 10% increase in years FYE 2026-FYE 2029.
• Rate Option #3 (RO3) – Is similar in cost to the average inside city limit residential customer as RO2, and more affordable for the average outside city limit residential customer. This is due to the base rate being based on meter size instead of location, which pushes costs from outside city limit customers to large meter customers. It includes a $300,000 gift from the general fund and a $300,000 loan from the general fund to keep rates more affordable. In FYE 2025, charges increase 0% - 40%, with increases averaging 10% for FYE 2026-FYE 2029. •
Figure 3 - Average customer bill in comparison to other local water agencies Rate Option #1
11 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad Rate Option #1 is the most expensive option for customers because it does not incorporate a $300,000 gift from the general fund and a $300,000 loan from the general fund. It maintains the City’s current base rate structure and after a 40%-75% increase in charges in FYE2025, has an 8% increase in years FYE2026- FYE2029.

Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
Inside City Limits 75.47 81.51 88.03 95.07 102.68
Outside City Limits 94.34 101.88 110.04 118.84 128.35
Rate per 100 CF 7.75 8.37 9.04 9.76 10.64
Impact of Rate Option #1
Percent increases for Rate Option #1
Percent Increases - Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
Inside City Limits 67% 8% 8% 8% 8%
Outside City Limits 67% 8% 8% 8% 8%
Rate per 100 CF 40-75% 8% 8% 8% 8%
Customer bills and affordability for Rate Option #1
The monthly bill for the average ¾” inside residential customer would be $121.97, while the average ¾” outside residential customer would have a bill of $140.84. The %MHI is below, the SWRCB’s first threshold of 1.5% is exceeded, with the second threshold of 2.5% MHI being exceeded in FYE2029 for inside customers and FYE2027 for outside customers.

FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Inside City
Limits 1.91% 2.06% 2.23% 2.40% 2.61%
Outside City
Limits 2.20% 2.38% 2.57% 2.78% 3.01%
Rate Option #1 Budget
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 254,564$ 264,747$ 275,337$ 286,350$ 297,804$ O&M 101,244$ 105,294$ 109,506$ 113,886$ 118,441$
Contracted Services 62,400$ 64,896$ 67,492$ 70,192$ 72,999$ Special Services 28,600$ 29,744$ 30,934$ 32,171$ 33,458$ Insurance 14,801$ 15,393$ 16,009$ 16,649$ 17,315$
Other Departments 9,360$ 9,734$ 10,124$ 10,529$ 10,950$ Miscellaneous 7,176$ 7,463$ 7,762$ 8,072$ 8,395$
Sub-Total Annual Expenses 478,146$ 497,272$ 517,162$ 537,849$ 559,363$ Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 5,977$ 5,977$ 5,977$ 5,977$ 5,977$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve -$ -$ -$ -$ -$
Debt Service Charge -$ -$ -$ -$ -$
Sub-Total Reserve Funding 159,241$ 144,162$ 138,303$ 135,397$ 134,335$ Total Expenses 637,387$ 641,434$ 655,465$ 673,246$ 693,698$ Revenue 2025 2026 2027 2027 2029
Sales Revenue 480,232$ 520,490$ 564,117$ 611,393$ 662,622$ Uncollectable Receivables $ (960) $ (1,041) $ (1,128) $ (1,223) $ (1,325) Water Penalties -$ -$ -$ -$ -$
New Water Hook-ups -$ -$ -$ -$ -$
General Fund Contract Operator Payment -$ -$ -$ -$ -$
General Fund Loan -$ -$ -$ -$ -$
Total Revenue 479,271$ 519,449$ 562,989$ 610,170$ 661,297$ Net Loss or Gain (Short/Over to Reserves) $ (158,116) $ (121,984) $ (92,477) $ (63,076) $ (32,401) Net Cashflow (Contribution to Reserves) 1,125$ 22,178$ 45,826$ 72,321$ 101,934$ Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
$ (468,053)
$ 243,384
13 RCAC 2024 Overview of the Initial Water Rate Study—City of Trinidad Rate Option #2
Rate Option #2 maintains the City’s current base rate structure and includes a $300,000 gift from the general fund and a $300,000 loan from the general fund to keep rates more affordable than RO1. After a 6%-32% increase in charges in FYE2025, has a 10% increase in years FYE2026-FYE2029.

Rate Option #2
Standard Rates
2025 2026 2027 2028 2029
Inside City Limits 59.11 65.02 71.52 78.68 86.54
Outside City Limits 73.89 81.28 89.40 98.34 108.18
Rate per 100 CF 5.85 6.44 7.08 7.79 8.56
Impacts of Rate Option #2
Percent increases for Rate Option #2
Percent Increases - Rate Option #2
Standard Rates
2025 2026 2027 2028 2029
Inside City Limits 31% 10% 10% 10% 10%
Outside City Limits 31% 10% 10% 10% 10%
Rate per 100 CF 6-32% 10% 10% 10% 10%
Customer bills and affordability for Rate Option #2
The monthly bill for the average ¾” inside residential customer would be $94.21, while the average ¾” outside residential customer would have a bill of $108.99. The %MHI is below, the SWRCB’s first threshold of 1.5% is exceeded by both inside and outside customers by FYE2026, with the second threshold of 2.5% MHI being exceeded in FYE2029 for outside customers.

FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Inside City
Limits 1.47% 1.62% 1.78% 1.96% 2.16%
Outside City
Limits 1.71% 1.88% 2.06% 2.27% 2.50%
Rate Option #2 Budget
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 254,564$ 264,747$ 275,337$ 286,350$ 297,804$ O&M 101,244$ 105,294$ 109,506$ 113,886$ 118,441$
Contracted Services 62,400$ 64,896$ 67,492$ 70,192$ 72,999$ Special Services 28,600$ 29,744$ 30,934$ 32,171$ 33,458$ Insurance 14,801$ 15,393$ 16,009$ 16,649$ 17,315$
Other Departments 9,360$ 9,734$ 10,124$ 10,529$ 10,950$ Miscellaneous 7,176$ 7,463$ 7,762$ 8,072$ 8,395$
Sub-Total Annual Expenses 478,146$ 497,272$ 517,162$ 537,849$ 559,363$ Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 5,977$ 5,977$ 5,977$ 5,977$ 5,977$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve -$ -$ -$ -$ -$
Debt Service Charge -$ -$ -$ -$ -$
Sub-Total Reserve Funding 159,241$ 144,162$ 138,303$ 135,397$ 134,335$ Total Expenses 637,387$ 641,434$ 655,465$ 673,246$ 693,698$ Revenue 2025 2026 2027 2027 2029
Sales Revenue 371,527$ 410,095$ 452,661$ 499,638$ 551,485$ Uncollectable Receivables $ (743) $ (820) $ (905) $ (999) $ (1,103) Water Penalties -$ -$ -$ -$ -$
New Water Hook-ups -$ -$ -$ -$ -$
General Fund Contract Operator Payment 300,000$ -$ -$ -$ -$ General Fund Loan -$ 100,000$ 75,000$ 50,000$ 25,000$
Total Revenue 670,784$ 509,275$ 526,755$ 548,639$ 575,382$ Net Loss or Gain (Short/Over to Reserves) 33,398$ $ (132,159) $ (128,710) $ (124,607) $ (118,316) Net Cashflow (Contribution to Reserves) 192,638$ 12,003$ 9,593$ 10,790$ 16,019$ Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
$ (470,394)
$ 241,044
15 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option #3
Rate Option #3 is RCAC’s recommendation. It is similar in cost to the average inside city limit residential customer as RO2, and more affordable for the average outside city limit residential customer. This is due to the base rate being based on meter size instead of location. It includes a $300,000 gift from the general fund and a $300,000 loan from the general fund to keep rates more affordable. In FYE2025, charges increase 0% - 40%, with increases averaging 10% for FYE2026-FYE2029.

Rate Option #3
Standard Rates
Meter Size 2025 2026 2027 2028 2029
3/4 63.44 69.72 76.72 84.46 93.02
1 85.03 92.26 101.00 110.91 122.04
1 ½ 120.33 131.73 144.71 159.16 175.21
4 602.40 667.14 735.45 809.73 891.01
Rate per 100 CF 5.54 5.93 6.35 6.99 7.71
Impacts of Rate Option #3
Percent increases for Rate Option #3
Percent Increases - Rate Option #3
Standard Rates
Meter Size 2025 2026 2027 2028 2029
3/4 12-40% 10% 10% 10% 10%
1 50-88% 9% 9% 10% 10%
1 ½ 113-166% 9% 10% 10% 10%
4 184-255% 11% 10% 10% 10%
Rate per 100 CF 0-25% 7% 7% 10% 10%
Customer bills and affordability for Rate Option #3
The monthly bill for the average ¾” inside residential customer would be $96.68, while the average ¾” outside residential customer would have a bill of $96.68. The %MHI is below, the SWRCB’s first threshold of 1.5% is exceeded by both inside and outside customers in FYE2025, with the second threshold of 2.5% MHI being not being exceeded through FYE2029.

FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Inside City
Limits 1.51% 1.65% 1.80% 1.98% 2.18%
Outside City
Limits 1.51% 1.65% 1.80% 1.98% 2.18%
16 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option #3 Budget
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 254,564$ 264,747$ 275,337$ 286,350$ 297,804$ O&M 101,244$ 105,294$ 109,506$ 113,886$ 118,441$
Contracted Services 62,400$ 64,896$ 67,492$ 70,192$ 72,999$ Special Services 28,600$ 29,744$ 30,934$ 32,171$ 33,458$ Insurance 14,801$ 15,393$ 16,009$ 16,649$ 17,315$
Other Departments 9,360$ 9,734$ 10,124$ 10,529$ 10,950$ Miscellaneous 7,176$ 7,463$ 7,762$ 8,072$ 8,395$
Sub-Total Annual Expenses 478,146$ 497,272$ 517,162$ 537,849$ 559,363$ Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 5,977$ 5,977$ 5,977$ 5,977$ 5,977$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve -$ -$ -$ -$ -$
Debt Service Charge -$ -$ -$ -$ -$
Sub-Total Reserve Funding 159,241$ 144,162$ 138,303$ 135,397$ 134,335$ Total Expenses 637,387$ 641,434$ 655,465$ 673,246$ 693,698$ Revenue 2025 2026 2027 2027 2029
Sales Revenue 378,251$ 412,187$ 449,706$ 495,037$ 545,442$ Uncollectable Receivables -$ -$ -$ -$ -$
Water Penalties -$ -$ -$ -$ -$
New Water Hook-ups -$ -$ -$ -$ -$
General Fund Contract Operator Payment 300,000$ -$ -$ -$ -$ General Fund Loan -$ 100,000$ 75,000$ 50,000$ 25,000$
Total Revenue 678,251$ 512,187$ 524,706$ 545,037$ 570,442$ Net Loss or Gain (Short/Over to Reserves) 40,864$ $ (129,247) $ (130,759) $ (128,208) $ (123,256) Net Cashflow (Contribution to Reserves) 200,105$ 14,915$ 7,544$ 7,188$ 11,079$ $ (470,606)
$ 240,832
Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
17 RCAC 2024 Water Rate Study—City of Trinidad
4 Recommendations
Rates, reserve funding, other recommendations
The City’s water fund net position in FYE 2022 had a net decrease. If the rates are not adjusted the system would be risking the ability to provide safe and affordable drinking water into the foreseeable future.

RCAC recommends adopting Rate Option #3 due to its cost allocation and affordability.

Proposition 218
When the City Council selects a rate option, this triggers the Proposition 218 process. Proposition 218 is a voter-approved initiative in California that restricts the authority of government agencies to charge certain taxes or fees. This proposition regulates property-related fees and charges that are imposed on a parcel. Following a California Supreme Court decision, water and sewer rates are now also subject to Proposition 218. Therefore, the City needs to follow Proposition 218 guidelines and related activities to legally pass new rates, which includes sending out a public notice and holding a public hearing.

To be in compliance with Proposition 218, the public notice needs to contain certain information. This information includes how and why the rate increase was proposed, the consequences of not raising rates, how charges are allocated among different types of users, and the date, time, and location of the public hearing. Proposition 218 requires that a public hearing be held at least 45 days after the public notice has been sent out. After the public hearing, the City Council can adopt the new rates through a resolution if there is no majority protest (50% plus one) from the property owners/rate payers. All protests are required to be in writing with the protester’s name and affected parcel number. Proposition 218 does not apply to connection charges, capacity charges, wholesale rates, groundwater pumping fees and conservation penalties.

General implementation advice and key points
Key points to remember with this rate adjustment are:
• Successful utilities are those that strive to be transparent. In day-to-day operations, a water system should strive to promote its services (highlights and the low points), and continuously educate residents on why it is necessary to raise and adjust rates. • Collecting for the true cost of water includes annual operating and administrative expenses as well as the funding of reserve accounts so that a water system can provide reliable, safe drinking water
• Every year revenues versus expenditures should be reviewed to ensure that the rates cover all costs to the system.
• Maintaining reserve policies aids in transparency, ensures the true cost of water is collected through water rates, and guides the annual review of revenues versus expenditures. • If possible, CIP reserves should be moved to and maintained in the highest interest-bearing accounts available to offset inflation unless the cost of doing so is more than the interest earned on the account.
• Conducting rate studies every five years helps to stabilize water rates for customers in the longterm. 5 Appendices

5.1 Projected five-year budget (FYE2025 – FYE 2029)

5.2 City of Trinidad’s capital improvement plan

5.3 Water treatment facility replacement plan

8.1 - Projected five-year budget (FYE2025 – FYE 2029)
Budget Date: 05/22/24 Exhibit 2
City of Trinidad Inflation Factor (%): 4.00
Loan Interest Rate (%) 3.00
System Number: CA1210018
Expense Type Account Name 2022 2023 2024
% Belonging
to Water 2025 2026 2027 2028 2029
Salaries & Benefits Employee Wages $ 125,741.86 $ 227,210 $ 207,967 100% $ 216,286 $ 224,937 $ 233,935 $ 243,292 $ 253,024 Salaries & Benefits Fringe Benefits $ 713.16 $ 4,954 $ 1,584 100% $ 1,647 $ 1,713 $ 1,782 $ 1,853 $ 1,927 Salaries & Benefits Deferred Retirement $ 10,939.15 $ 13,195 $ 16,757 100% $ 17,427 $ 18,124 $ 18,849 $ 19,603 $ 20,387 Salaries & Benefits Medical Insurance & Expense $ 14,009.56 $ 22,398 $ 31,005 100% $ 32,246 $ 33,535 $ 34,877 $ 36,272 $ 37,723 Salaries & Benefits Health Insurance Deductible Benefit $ 1,045.20 $ 209 $ 1,356 100% $ 1,410 $ 1,467 $ 1,525 $ 1,586 $ 1,650 Salaries & Benefits Worker's Compensation $ 2,828.20 $ 9,925 $ 6,913 100% $ 7,189 $ 7,477 $ 7,776 $ 8,087 $ 8,411 Salaries & Benefits Employee Mileage Reimbursement $ 193 $ - 100% $ - $ - $ - $ - $ - Salaries & Benefits Payroll Tax $ 10,610.37 $ 18,281 $ 17,191 100% $ 17,879 $ 18,594 $ 19,338 $ 20,111 $ 20,916 Salaries & Benefits Grant Payroll Alllocation $ (8,417.44) $ (33,286) $ (38,000) 100% $ (39,520) $ (41,101) $ (42,745) $ (44,455) $ (46,233) Insurance Crime, Cyber, & Pollution Insurance $ 303.80 $ 319 $ 600 100% $ 624 $ 649 $ 675 $ 702 $ 730 Insurance General Liability Insurance $ 7,848.75 $ 9,756 $ 10,632 100% $ 11,057 $ 11,500 $ 11,960 $ 12,438 $ 12,935 Insurance Propery & Casualty Insurance $ 2,739.43 $ 2,470 $ 3,000 100% $ 3,120 $ 3,245 $ 3,375 $ 3,510 $ 3,650 Other Departments City Attorney - Admin Tasks $ - $ 140 $ 500 100% $ 520 $ 541 $ 562 $ 585 $ 608 Other Departments City Engineer - Admin Tasks $ 24,556.14 $ 4,086 $ 3,500 100% $ 3,640 $ 3,786 $ 3,937 $ 4,095 $ 4,258 Special Services Engineer Special Projects $ 39,795.75 $ 2,132 $ 5,000 100% $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6,083 Other Departments City Planner - Admin Tasks $ 4,505.61 $ 1,396 $ 5,000 100% $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6,083 Special Services Accountant $ 8,939.07 $ 10,006 $ 10,000 100% $ 10,400 $ 10,816 $ 11,249 $ 11,699 $ 12,167 Special Services Auditor $ 7,516.25 $ 9,660 $ 10,000 100% $ 10,400 $ 10,816 $ 11,249 $ 11,699 $ 12,167 Miscellaneous Bad Debts $ - $ - $ 100 100% $ 104 $ 108 $ 112 $ 117 $ 122 Special Services Tech Support/Financial Advisor $ 506.25 $ 1,755 $ 2,500 100% $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3,042 O&M Utilities $ 16,703.77 $ 22,274 $ 23,000 100% $ 23,920 $ 24,877 $ 25,872 $ 26,907 $ 27,983 Miscellaneous Dues & Memberships $ 845.00 $ 872 $ 950 100% $ 988 $ 1,028 $ 1,069 $ 1,111 $ 1,156 Miscellaneous Municipal Expense $ 3,428.90 $ 240 $ 250 100% $ 260 $ 270 $ 281 $ 292 $ 304 Miscellaneous Office Supplies & Expense $ 3,208.41 $ 3,345 $ 5,000 100% $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6,083 Miscellaneous Bank Charges $ 40.00 $ 212 $ 100 100% $ 104 $ 108 $ 112 $ 117 $ 122 Miscellaneous Training/Education $ 237.53 $ 1,083 $ 500 100% $ 520 $ 541 $ 562 $ 585 $ 608 Contracted Services Contracted Services $ 302,088.42 $ 389,465 $ 60,000 100% $ 62,400 $ 64,896 $ 67,492 $ 70,192 $ 72,999 Miscellaneous Misc Expenses $ 643.10 $ 315 $ - 100% $ - $ - $ - $ - $ - O&M Telephone $ 896.01 $ 7,886 $ 1,800 100% $ 1,872 $ 1,947 $ 2,025 $ 2,106 $ 2,190 O&M Cable & Internet Services $ 741.40 $ 743 $ 750 100% $ 780 $ 811 $ 844 $ 877 $ 912 O&M Licenses & Fees $ 3,639.00 $ 4,517 $ 5,000 100% $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6,083 O&M Vehicle Fuel and Oil $ 1,410.58 $ 2,671 $ 5,800 100% $ 6,032 $ 6,273 $ 6,524 $ 6,785 $ 7,057 O&M Vehicle Repairs $ 499.01 $ 2,007 $ 2,500 100% $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3,042 O&M Building Repairs and Maintenance $ - $ 65 $ 2,500 100% $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3,042 O&M Security System $ 352.00 $ 351 $ 500 100% $ 520 $ 541 $ 562 $ 585 $ 608 O&M Materials, Supplies, and Equipment $ 2,226.07 $ 3,159 $ 3,500 100% $ 3,640 $ 3,786 $ 3,937 $ 4,095 $ 4,258 O&M Equipment Repairs & Maintenance $ 18,823.47 $ 15,553 $ 7,500 100% $ 7,800 $ 8,112 $ 8,436 $ 8,774 $ 9,125 O&M Water Lab Fees $ 5,300.00 $ 7,170 $ 7,500 100% $ 7,800 $ 8,112 $ 8,436 $ 8,774 $ 9,125 O&M Water Plant Chemical $ 20,156.76 $ 8,975 $ 9,000 100% $ 9,360 $ 9,734 $ 10,124 $ 10,529 $ 10,950 O&M Water Line Hook-Ups $ 5,840.82 $ - $ - 100% $ - $ - $ - $ - $ - O&M Water Line Repair $ 10,674.30 $ 15,256 $ 25,000 100% $ 26,000 $ 27,040 $ 28,122 $ 29,246 $ 30,416 O&M Water Plant Repair $ - $ - $ 3,000 100% $ 3,120 $ 3,245 $ 3,375 $ 3,510 $ 3,650 O&M Reserve Capital Reserves $ - $ - 100% $ - $ - $ - $ - $ - Miscellaneous Street Light $ 24 100%
Miscellaneous Match Expense $ 13 100%
$ 651,973 $ 790,956 $ 459,756 $ 478,146 45 $ $ 497,272 $ 517,162 $ 537,849 $ 559,363 Emergency Reserve Operating Reserve Funding $ - $ - $ - 100% $ 5,977 $ 5,977 $ 5,977 $ 5,977 $ 5,977 Debt Reserve Emergency Reserve Funding $ - $ - $ - 100% $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 Capital Reserves Debt Reserve Funding $ - $ - $ - 100% $ - $ - $ - $ - $ - Capital Reserves Replacement of Existing Capital Assets $ - $ - $ - 100% $ 152,264 $ 137,185 $ 131,326 $ 128,420 $ 127,359 Capital Reserves Replacement of Funded Project Assets $ - $ - $ - 100% $ - $ - $ - $ - $ - Debt Service Charge Reserves for Additional Capital Assets $ - $ - $ - 100% $ (0) $ - $ - $ - $ - Debt Service $ - $ - $ - 100% $ - $ - $ - $ - $ -
$ - -$ -$ 7$ 159,241 $ $ 144,162 $ 138,303 $ 135,397 $ 134,335 $ 651,973 $ 790,956 $ 459,756 $ 637,387 52 $ $ 641,434 $ 655,465 $ 673,246 $ 693,698 Sub-Total Annual Expenses
Expenses
Sub-Total Reserve Funding
Total Expenses

8.2 – City of Trinidad’s capital improvement plan
Capital Replacement Program AWWA Cash-Needs Approach Exhibit 1 City of Trinidad Date: 5/20/24
System Number: CA1210018
Service Connections: 326
Quantity Asset
Year
Acquired
Unit Cost
(Historic,
Current or
Future)
Cost
Type
(H, C,
F)
%
Belonging
to Water
Estimated Historic
Cost (Water only)
Normal
Estimated
Life
Current
Age
Estimated
Current Cost
Planned
Remaining
Life
Estimated
Remaining
Life
Estimated
Future Cost
Fund
with
Cash
Fund
with
Grant
Fund
with
Loan
Existing
Reserves
Annual
Reserve
Required
Replacement of Existing Capital Assets
1 Luffenholtz Creek Infiltration Gallery 1980 $730,000 C 100% $152,239 45 44 730,000 1 5 888,157 5% 85% 10% 0 8,793 30 *3 perforated pipes buried ten feet below surface 1980 $168 C 100% $1,051 45 44 5,040 1 5 6,132 100% 0% 0% 0 1,214 - Wet Well Pump (approx 175 gpm each) 2014 $7,000 C 100% $0 35 10 0 25 25 0 100% 0% 0% 0 Not Cap. 1 Creek Flow meter 2017 $8,000
C 100%
$6,234 15 7 8,000 8 8 10,949
100% 0% 0% 0 1,345
1 Source Meter 1980 $8,000
C 100%
$1,668 15 44 8,000 -29 5 9,733
100% 0% 0% 0 1,927
- Westhaven Treatment Plant (60-120gpm) 2016 $2,136,000 H 100% $0 60 8 0 52 25 0 100% 0% 0% 0 Not Cap. 1 Sediment Reduction 2015 $1,670,720 H 100% $1,670,720 60 9 2,277,020 51 25 6,070,162 5% 85% 10% 0 11,428 - *Flocculator 2016 $0 C 100% $0 15 8 0 7 7 0 100% 0% 0% 0 Not Cap. -
*Polymer Feed 2016 $0
C 100%
$0 15 8 0 7 7 0
100% 0% 0% 0 Not Cap.
- *Mixed Media filters 2016 $0 C 100% $0 15 8 0 7 7 0 100% 0% 0% 0 Not Cap. - *Chlorine Feed 2016 $0 C 100% $0 15 8 0 7 7 0 100% 0% 0% 0 Not Cap. - *Chlorine contact Pipe 2016 $0 C 100% $0 60 8 0 52 52 0 100% 0% 0% 0 Not Cap. - *Backwash tank (20,000 gallons) 2016 $0 C 100% $0 60 8 0 52 52 0 100% 0% 0% 0 Not Cap. - Turbidity Monitoring 2013 $120,155 H 100% $0 15 11 0 4 5 0 100% 0% 0% 0 Not Cap. - 2013 Water Plant Upgrade 2013 $231,720 H 100% $0 60 11 0 49 50 0 100% 0% 0% 0 Not Cap. 1 Raw Water Turbidimeter 1980 $3,430
c 100%
$715 15 44 3,430 -29 1 3,567
100% 0% 0% 0 Not Cap.
1 Finished Water Turbidimeter 2023 $3,430 c 100% $3,310 15 1 3,430 14 15 6,177 100% 0% 0% 0 398 1 Filter #1 Turbidmeter 2013 $3,430 c 100% $2,318 15 11 3,430 4 1 3,567 100% 0% 0% 0 Not Cap.
1 Filter #2 Turbidmeter 2013 $3,430
c 100%
$2,318 15 11 3,430 4 1 3,567
100% 0% 0% 0 Not Cap.
1 Filter #3 Turbidmeter 2013 $3,430
c 100%
$2,318 15 11 3,430 4 1 3,567
100% 0% 0% 0 Not Cap.
1 SCM 2013 $13,000
c 100%
$8,785 15 11 13,000 4 2 14,061
100% 0% 0% 0 7,013
1 CL17 - Cl2 residual 2013 $3,325 c 100% $2,247 15 11 3,325 4 15 5,988 100% 0% 0% 0 385 - Flow Meter 2013 $0 c 100% $0 15 11 0 4 0 0 100% 0% 0% 0 0 1 Mid Turbidmeter 2013 $3,430
c 100%
$2,318 15 11 3,430 4 1 3,567
100% 0% 0% 0 Not Cap.
1 Rinse to Waste 2013 $5,000
c 100%
$3,379 15 11 5,000 4 1 5,200
100% 0% 0% 0 5,200
1 Poly Pump #1 2013 $1,000 c 100% $676 15 11 1,000 4 2 1,082 100% 0% 0% 0 Not Cap. 1 Poly Pump #2 2013 $1,000 c 100% $676 15 11 1,000 4 2 1,082 100% 0% 0% 0 Not Cap. 1 CL2 Pump 2013 $1,000 c 100% $676 15 11 1,000 4 2 1,082 100% 0% 0% 0 Not Cap. 1 Wet Well Pump #1 2013 $5,000 c 100% $3,379 15 11 5,000 4 3 5,624 100% 0% 0% 0 1,865 1 Wet Well Pump #2 2013 $5,000 c 100% $3,379 15 11 5,000 4 3 5,624 100% 0% 0% 0 1,865 1 Flash Mixer #1 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 0 Not Cap. 1 Flash Mixer #2 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 0 Not Cap. 1 Backwash Pump 2013 $5,000 c 100% $3,379 15 11 5,000 4 4 5,849 100% 0% 0% 0 1,451 1 Intermediate Pump #1 - Booster Pump 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 0 Not Cap. 1 Intermediate Pump #2 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 0 Not Cap. 1 Soda Ash Pump 2013 $1,000 c 100% $676 15 11 1,000 4 3 1,125 100% 0% 0% 0 Not Cap. 1 Recycle Pump 2013 $5,000 c 100% $3,379 15 11 5,000 4 1 5,200 100% 0% 0% 0 5,200 1 CL2 Residual 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 0 Not Cap. 1 Sludge Removal 2013 $5,000 c 100% $3,379 15 11 5,000 4 5 6,083 100% 0% 0% 0 1,205 1 Level Transducers 2013 $9,500 c 100% $6,420 15 11 9,500 4 6 12,021 100% 0% 0% 0 1,979 1 Tank Floats - Kill Switch 2013 $750 c 100% $507 15 11 750 4 6 949 100% 0% 0% 0 Not Cap. 1 SC-100 - Controller 2013 $3,505 c 100% $2,369 15 11 3,505 4 1 3,645 100% 0% 0% 0 Not Cap. 1 SC-200 (2) - Controller 2013 $7,010 c 100% $4,737 15 11 7,010 4 1 7,290 100% 0% 0% 0 7,290 - Remaining Turbidity Equipment 2013 $103,005 c 100% $0 15 11 0 4 4 0 100% 0% 0% 0 Not Cap. - Remaining Treatment Plant Equipment 2013 $109,700 c 100% $0 60 11 0 49 49 0 100% 0% 0% 0 Not Cap. 250,000 Westhaven Tank 1 (150,000 gallons, will replace with 250,000 gallon tank) 1980 $2 C 100% $127,213 60 44 610,000 16 16 1,142,519 5% 85% 10% 0 3,438 - Westhaven Tank 2 (150,000 gallons, being replaced
now by grant below) 1980 $2 C 100% $0 60 44 0 16 16 0 100% 0% 0% 0 Not Cap. 191 2" Pipe (half) 1980 $75 C 100% $2,987 50 44 14,325 6 5 17,429 100% 0% 0% 0 3,451 691 3" Pipe (half) 1980 $75 C 100% $10,800 50 44 51,788 6 5 63,007 100% 0% 0% 0 12,476 4,232 4" Pipe (half) 1980 $250 C 100% $220,616 40 44 1,057,875 -4 5 1,287,067 5% 85% 10% 0 12,743 6,474 6" Pipe (half) 1980 $250 C 100% $337,506 40 44 1,618,375 -4 10 2,395,590 5% 85% 10% 0 11,711 3,615 8" Pipe ((10979 ft - 3750 ft for SCDRP Project)/2) 1980 $300 C 100% $226,137 40 44 1,084,350 -4 15 1,952,853 5% 85% 10% 0 6,285 1,408 10" Pipe ((6566 ft - 3750 ft for SCDRP Project)/2). 1980 $300 C 100% $88,090 40 44 422,400 -4 15 760,719 5% 85% 10% 0 2,448 191 2" Pipe (half) 1980 $75 C 100% $2,987 40 44 14,325 -4 20 31,388 100% 0% 0% 0 1,496 691 3" Pipe (half) 1980 $75 C 100% $10,800 40 44 51,788 -4 20 113,473 25% 75% 0% 0 1,352 4,232 4" Pipe (half) 1980 $250 C 100% $220,616 40 44 1,057,875 -4 20 2,317,934 5% 85% 10% 0 5,524 6,474 6" Pipe (half) 1980 $250 C 100% $337,506 40 44 1,618,375 -4 25 4,314,323 5% 85% 10% 0 8,122 3,615 8" Pipe ((10979 ft - 3750 ft for SCDRP Project)/2) 1980 $300 C 100% $226,137 40 44 1,084,350 -4 25 2,890,700 5% 85% 10% 0 5,442 1,408 10" Pipe ((6566 ft - 3750 ft for SCDRP Project)/2) 1980 $300 C 100% $88,090 40 44 422,400 -4 25 1,126,049 5% 85% 10% 0 2,120 1 2" Valves (half) 1980 $3,000 C 100% $626 40 44 3,000 -4 5 3,650 5% 85% 10% 0 Not Cap. 2 3" Valves (half) 1980 $3,000 C 100% $938 40 44 4,500 -4 5 5,475 5% 85% 10% 0 54 6 4" Valves (half) 1980 $4,000 C 100% $5,005 40 44 24,000 -4 5 29,200 5% 85% 10% 0 289 13 6" Valves (half) 1980 $4,000 C 100% $10,844 40 44 52,000 -4 10 76,973 5% 85% 10% 0 376 10 8" Valves (half) 1980 $6,200 C 100% $12,283 40 44 58,900 -4 15 106,076 5% 85% 10% 0 341 4 10" Valves (half) 1980 $6,200 C 100% $4,525 40 44 21,700 -4 15 39,080 5% 85% 10% 0 126 1 2" Valves (half) 1980 $3,000 C 100% $626 40 44 3,000 -4 20 6,573 5% 85% 10% 0 16 2 3" Valves (half) 1980 $3,000 C 100% $938 40 44 4,500 -4 20 9,860 5% 85% 10% 0 23 6 4" Valves (half) 1980 $4,000 C 100% $5,005 40 44 24,000 -4 20 52,587 5% 85% 10% 0 125 13 6" Valves (half) 1980 $4,000 C 100% $10,844 40 44 52,000 -4 25 138,623 5% 85% 10% 0 261 10 8" Valves (half) 1980 $6,200 C 100% $12,283 40 44 58,900 -4 25 157,018 5% 85% 10% 0 296 4 10" Valves (half) 1980 $6,200 C 100% $4,525 40 44 21,700 -4 25 57,849 5% 85% 10% 0 109 27 Hydrants 1980 $7,035 C 100% $39,612 60 44 189,945 16 16 355,763 25% 75% 0% 0 5,353 222 Inside Meters 1980 $500 C 100% $23,149 15 44 111,000 -29 5 135,048 25% 75% 0% 0 6,685 101 Outside Meters 1980 $500 C 100% $10,532 15 44 50,500 -29 5 61,441 25% 75% 0% 0 3,041 100% 0% 0% 100% 0 0
Subtotal Replacement of Existing Capital Assets $3,946,297 12,925,100 26,760,609 6% 84% 10% 0 152,264 Quantity Asset
Year
Acquired
Unit Cost
(Current or
Future)
Cost
Type
(C, F)
%
Belonging
to Water
Normal
Estimated
Life
Time to
Complete
Estimated
Current Cost
Planned
Remaining
Life
Estimated
Remaining
Life
Estimated
Future Cost
Fund
with
Cash
Fund
with
Grant
Fund
with
Loan
Existing
Reserves
Annual
Reserve
Required
Replacement of Funded Project Assets
1 SCDRP Tank & Pipelines 2024 5,079,090 C 100% 50 0 5,079,090 50 50 36,095,484 0% 100% 0% 0 0 100% 0% 0% 0% 0 0
Subtotal Replacement of Funded Project Assets 5,079,090 36,095,484 0% 100% 0% 0 Enter Existing Reserves for Replacement of Funded Project Assets Quantity Asset
Year to
be
Purchase
d
Unit Cost
(Current or
Future)
Cost
Type
(C, F)
%
Belonging
to Water
Normal
Estimated
Life
Years to
save
Estimated
Current Cost
Estimated
Future Cost
Fund
with
Cash
Fund
with
Grant
Fund
with
Loan
Existing
Reserves
Annual
Reserve
Required
Reserves for Additional Capital Assets
1 MBDRP Intertie 2025 2,000,000 H 100% 50 1 0 0% 100% 0% 0 Booster Pump 1 2025 607,000 C 100% 40 1 607,000 631,280 100% 0% 0% 631,280 0 100% 0% 0% 0% 0
Subtotal Reserves for Additional Capital Assets 607,000 631,280 100% 0% 0% 631,280 0 Enter Existing Reserves for Additional Capital Assets
Total Capital Reserves 18,611,190 63,487,373 4% 92% 4% 631,280 152,264

8.3 Coleman Engineering water treatment facility replacement plan City of Trinidad - Water Treatment Facility
Fiscal Year 2023 Suggested Repair and Replacement Budget Prepared September 2023 by Coleman Engineering
Asset Tag #
Field Notes and
Observations Condition Rating Functional Description
Risk Criticality Comments 2023 2024 2025 2026 2027 2028 2029 2030 Raw Water Turbidimeter AT1001A No longer in
production
Fair Influent NTU High 1 Out of date $ 3,430
Finished Water Turbidimeter AT100B NEW NEW Finished NTU High 1 Replaced 7/2023 $3,430 Filter #1 Turbidmeter AT1002A Outdated Fair #1 NTU High 1 Out of date $3,430 Filter #2 AT1002B Outdated Fair #2 NTU High 1 Out of date $3,430 Filter #3 AT1003 Outdated Fair #3 NTU High 1 Out of date $3,430 SCM AT1006 Outdated Fair Raw Water High 1 Out of date $13,000 CL17 AT1007 NEW NEW CL2 Residual High 1 NEW $3,325
Flow Meter FT1014 Unknown Fair GPM Monitor High 2 Unknown Mid Turbidmeter AT1004 Outdated Fair Between Filters High 1 Out of date $33,430 Rinse to Waste CV1015 Out of Use Unknown Filter Rinse Low 3 Out of Use $5,000 Poly Pump #1 XA1009 Unknown Unknown Poly Dose High 1 Unknown $1,000 Poly Pump #2 XA1011 Unknown Unknown Poly Dose Low 3 Unknown $1,000 CL2 Pump XA1013 Unknown Unknown CL2 Dose High 1 Unknown $1,000 Wet Well Pump #1 EQ-100 Unknown Unknown Influent Pump High 1 Unknown $5,000 Wet Well Pump #2 EQ-110 Unknown Unknown Influent Pump High 1 Unknown $5,000 Flash Mixer #1 EQ-200-1 2015 Fair Poly Mixer Medium 2 Unknown 3,500 Flash Mixer #2 EQ-200-2 2015 Fair Poly Mixer Medium 2 Unknown 3,500 Backwash Pump EQ-200-3 Unknown Unknown Backwash Pump High 1 Unknown 5,000 Intermediate Pump #1 EQ-400 2015 Fair Booster Pump High 1 Unknown 3,500 Intermediate Pump #2 EQ-410 2015 Fair Booster Pump High 1 Unknown 3,500 Soda Ash Pump EQ-450 Unknown Fair Soda Pump Medium 2 Unknown $1,000 Recycle Pump P-900 Out of Use Unknown Recycle Low 3 Unknown $5,000 CL2 Residual EQ-650 Unknown Good CL2 Residual High 1 Unknown 3,500 Sludge Removal EQ-150 Unknown Good Sludge Removal Low 3 Unknown 5,000 Level Transducers Unknown Unknown Water Levels High 1 Total of 5 9,500 Tank Floats Unknown Unknown Kill Switch High 1 Total of 5 750 SC-100 Out dated poor controller High 1 No parts $3,505 SC-200 (2) Out dated fair controller High 1 No parts $7,010 Totals $10,260 $20,290 $43,870 $16,000 $11,000 $5,000 $22,500 $10,250 City of Trinidad Water Rate Study
May 28, 2024
Agenda
Water Rate Study
Why are we looking at rates?
Industry Standard to
look at rates every 5
years
Last rate study was
in 2012
Inflation is 25%
(from 2017 to 2024)
Operating Costs
Rate Study Process

REVENUE

REQUIREMENTS

COST-OF-SERVICE

ANALYSIS

RATE DESIGN
City’s Water Enterprise - Current Status
FYE 2022 Actuals
• Expenses = $688,138
• Revenue = $331,370
• Net Gain/Loss = ($356,768)
FYE 2025 Rate Study Budget
• Expenses = $637,387
• Revenue = $338,000*
• Net Gain/Loss = ($299,387)
Contributing Factors:
• Inflation
• Hiring Engineering Firm as Contract Operator
*if rates are not increased
City of Trinidad’s Budget
Water Fund
Water
Operating
Fund
Water Capital
Improvement
Reserve
Special
Projects
Water Operating Fund
Water O&M Account - Budget Projections
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2022 2023 2024 2025 2026 2027 2028 2029
Expenses Revenue
The City of Trinidad had budgeted for Contracted
Services with Coleman Engineering to end in FYE
2024.

Water O&M Account - Budget Projections
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Contracted Services Insurance Miscellaneous O&M Other Departments Salaries & Benefits Special Services Reserves 2023 Estimated Expenses
2025 Projected Expenses
Water Capital Improvement Reserve
Trinidad’s Capital Improvement Plan
Calculate Annual
Reserve Requirement:
• Installation Date
• Normal Estimated Life
• Estimated Remaining
Life
• Costs
• Funding Plan
Water Treatment Facility Replacement Plan
City of Trinidad - Water Treatment Facility
Fiscal Year 2023 Suggested Repair and Replacement Budget Prepared September 2023 by Coleman Engineering
Asset 2023 2024 2025 2026 2027 2028 2029 2030
Raw Water Turbidimeter $ 3,430
Finished Water Turbidimeter $ 3,430
Filter #1 Turbidmeter $ 3,430
Filter #2 $ 3,430
Filter #3 $ 3,430
SCM $ 13,000
CL17 $ 3,325
Flow Meter
Mid Turbidmeter $ 33,430
Rinse to Waste $ 5,000
Poly Pump #1 $ 1,000
Poly Pump #2 $ 1,000
CL2 Pump $ 1,000
Wet Well Pump #1 $ 5,000
Wet Well Pump #2 $ 5,000
Flash Mixer #1 $ 3,500
Flash Mixer #2 $ 3,500
Backwash Pump $ 5,000
Intermediate Pump #1 $ 3,500
Intermediate Pump #2 $ 3,500
Soda Ash Pump $ 1,000
Recycle Pump $ 5,000
CL2 Residual $ 3,500
Sludge Removal $ 5,000
Level Transducers $ 9,500
Tank Floats $ 750
SC-100 $ 3,505
SC-200 (2) $ 7,010
$ 10,260 $ 20,290 $ 43,870 $ 16,000 $ 11,000 $ 5,000 $ 22,500 $ 10,250 Trinidad’s Water Capital Improvement Reserves
• CIP – Recommend to collect $152,264 from customer rates annually • $761,320 over the 5-year rate study
• Due to affordability, all rate options are aimed at collecting approximately $240,000 total over the 5-year period
• Rate Options 2 & 3 use the General Fund gift/loan to accomplish this goal • The reserve had $1,170,000 as of FYE 2022 audited financials • Over half of the Water Capital Improvement Reserves were used to cover Operating Fund deficits at the end of FYE 2022 and continues to cover any deficits
Other Reserves
• Operations & maintenance reserves – three times the expenses during a billing cycle. $119,536 in O&M reserves is recommended.
• Emergency reserves – cost to replace most critical equipment, typically a well pump. $10,000 in emergency reserves is recommended.
• Debt reserves – specific amount required by certain funders when receiving a loan. No amount for debt reserves is currently recommended.
• Capital reserves – maintain a minimum of an average annual rehabilitation and replacement budget and up to 10% of the total asset value of approximately $12.925 million. It is recommended, at a minimum, that $152,264 be in capital reserves. The capital reserves could be funded up to $1,292,510.

Rate Options
Rate Options Being Presented Today Rate Option
• Base rate by location
• Uniform usage
charge
• NO Gift/Loan from
General Fund
• Highest Rates
Rate Option
• Base rate by location
• Uniform usage
charge
• Gift/Loan from
General Fund
• Affordable
Rate Option
• Base rate by meter
size
• Uniform usage
charge
• Gift/Loan from
General Fund
• Affordable,
Recommended Rates
How are the rates structured?
Variable Base Rate
- Location
Variable Base Rate
- AWWA meter
equivalency ratios
Variable Usage
Rate – Location
Uniform Usage
Rate
While there is no single approach to rate design and setting, RCAC believes costs should be allocated to customers as can reasonably be determined or estimated while respecting the policy preference of the water agency as long as there is a reasonable cost basis.

Current Rate Structure
The City currently has:
• Variable Base Rate and Usage Rate by Location
Rate Comparison
Standard Rates
Base Rate Usage Rate
Inside City Limits 45.23 4.42
Outside City Limits 56.54 5.54
AWWA Meter Equivalency Ratios
Meter Size Current Base
Rate Ratio
Capacity
Ratio
(a)
Flat Charge
(b)
CR Meter
Cost Ratio
(c)
Fire Demand
Ratio
(d)
¾” 1.0 1.0 1.0 1.0 1.0
1” 1.0 1.67 1.0 1.79 2.0

1.5” 1.0 3.33 1.0 1.79 2.0
4” 1.0 25 1.0 16.00 3.5
Base
Usage
Capacity Ratio Flat Charge CR Meter Cost
Ratio Fire Demand Ratio

23.61% 35.17% 1.53% 8.95% 30.75%
Uniform Usage Rate
It is recommended to no longer have a different usage rate between inside and outside customers
In the landmark 2015 ruling in the case of Capistrano Taxpayers Association v. The City of San Juan Capistrano, the Fourth District of the Court of Appeal ruled that Proposition 218 requires public water agencies to calculate the actual costs of providing water at various levels of usage. In order to comply with section 6.1, tiered rates mathematical calculations must be conducted to justify how the number of units in each tier and the amount charged in each tier were determined. After San Juan Capistrano, the growing body of case law on tiered water rates emerging out of the California Court of Appeals has turned tiered rate-setting into a confusing and tenuous process.

General Fund Gift/Loan
REVENUE 2024 2025 2026 2027 2028 2029
Sales Revenue (Base + Usage) 303,858 ~371,527 ~410,095 ~452,661 ~499,638 ~551,485 Water Penalties 7,740 0 0 0 0 0
Uncollectable Receivables -743 -820 -905 -999 -1,103
General Fund Contract Operator Payment 0 0 0 0 0
General Fund Loan 0 0 0 0 0
Rate Option #1
Rate Option #2 & #3
REVENUE 2024 2025 2026 2027 2028 2029
Sales Revenue (Base + Usage) 303,858 ~371,527 ~410,095 ~452,661 ~499,638 ~551,485 Water Penalties 7,740 0 0 0 0 0
Uncollectable Receivables -743 -820 -905 -999 -1,103
General Fund Contract Operator Payment 300,000 0 0 0 0
General Fund Loan 0 100,000 75,000 50,000 25,000
Rate Comparison
Inside Rates
Meter Size Current RO#1 RO#2 RO#3
Inside - ¾” 45.23 75.47 59.11 63.44
Inside – 1” 45.23 75.47 59.11 85.03
Inside - 1.5” 45.23 75.47 59.11 120.33
Inside – 4” 45.23 75.47 59.11 602.40
Rate per 100 CF 4.42 7.75 5.85 5.54
Outside Rates
Meter Size Current RO#1 RO#2 RO#3
Outside - ¾” 56.54 94.34 73.89 63.44
Outside – 1” 56.54 94.34 73.89 85.03
Outside - 1.5” 56.54 94.34 73.89 120.33
Outside – 4” 56.54 94.34 73.89 602.40
Rate per 100 CF 5.54 7.75 5.85 5.54
Increase Comparison
Inside Rates
Meter Size RO#1 RO#2 RO#3
Inside - ¾” 67% 31% 40%
Inside – 1” 67% 31% 88%
Inside - 1.5” 67% 31% 166%
Inside – 4” 67% 31% 255%
Rate per 100 CF 75% 32% 25%
Outside Rates
Meter Size RO#1 RO#2 RO#3
Outside - ¾” 67% 31% 12%
Outside – 1” 67% 31% 50%
Outside - 1.5” 67% 31% 113%
Outside – 4” 67% 31% 184%
Rate per 100 CF 40% 6% 0%
• The monthly bill for the average ¾”
inside residential customer would be
$121.97
• The monthly bill for the average ¾”
outside residential customer would be
$140.84
Rate Option #1
Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
Inside City
Limits 75.47 81.51 88.03 95.07 102.68
Outside City
Limits 94.34 101.88 110.04 118.84 128.35
Rate per
100 CF 7.75 8.37 9.04 9.76 10.64
Percent Increases - Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
Inside City
Limits 67% 8% 8% 8% 8%
Outside City
Limits 67% 8% 8% 8% 8%
Rate per
100 CF
40-75% 8% 8% 8% 8%
Affordability (% MHI)
2025 2026 2027 2028 2029
Inside City
Limits

1.91% 2.06% 2.23% 2.40% 2.61%
Outside
City Limits

2.20% 2.38% 2.57% 2.78% 3.01%
Budget –
RO#1
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 254,564$ 264,747$ 275,337$ 286,350$ 297,804$ O&M 101,244$ 105,294$ 109,506$ 113,886$ 118,441$
Contracted Services 62,400$ 64,896$ 67,492$ 70,192$ 72,999$ Special Services 28,600$ 29,744$ 30,934$ 32,171$ 33,458$ Insurance 14,801$ 15,393$ 16,009$ 16,649$ 17,315$
Other Departments 9,360$ 9,734$ 10,124$ 10,529$ 10,950$ Miscellaneous 7,176$ 7,463$ 7,762$ 8,072$ 8,395$
Sub-Total Annual Expenses 478,146$ 497,272$ 517,162$ 537,849$ 559,363$ Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 5,977$ 5,977$ 5,977$ 5,977$ 5,977$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve -$ -$ -$ -$ -$
Debt Service Charge -$ -$ -$ -$ -$
Sub-Total Reserve Funding 159,241$ 144,162$ 138,303$ 135,397$ 134,335$ Total Expenses 637,387$ 641,434$ 655,465$ 673,246$ 693,698$ Revenue 2025 2026 2027 2027 2029
Sales Revenue 480,232$ 520,490$ 564,117$ 611,393$ 662,622$ Uncollectable Receivables $ (960) $ (1,041) $ (1,128) $ (1,223) $ (1,325) Water Penalties -$ -$ -$ -$ -$
New Water Hook-ups -$ -$ -$ -$ -$
General Fund Contract Operator Payment -$ -$ -$ -$ -$
General Fund Loan -$ -$ -$ -$ -$
Total Revenue 479,271$ 519,449$ 562,989$ 610,170$ 661,297$ Net Loss or Gain (Short/Over to Reserves) $ (158,116) $ (121,984) $ (92,477) $ (63,076) $ (32,401) Net Cashflow (Contribution to Reserves) 1,125$ 22,178$ 45,826$ 72,321$ 101,934$ Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
$ (468,053)
$ 243,384
• The monthly bill for the average ¾”
inside residential customer would be
$94.21
• The monthly bill for the average ¾”
outside residential customer would be
$108.99
Rate Option #2
Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
Inside City
Limits 59.11 65.02 71.52 78.68 86.54
Outside City
Limits 73.89 81.28 89.40 98.34 108.18
Rate per
100 CF 5.85 6.44 7.08 7.79 8.56
Percent Increases - Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
Inside City
Limits 31% 10% 10% 10% 10%
Outside City
Limits 31% 10% 10% 10% 10%
Rate per
100 CF
6-32% 10% 10% 10% 10%
Affordability (% MHI)
2025 2026 2027 2028 2029
Inside City
Limits

1.47% 1.62% 1.78% 1.96% 2.16%
Outside
City Limits

1.71% 1.88% 2.06% 2.27% 2.50%
Budget –
RO#2
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 254,564$ 264,747$ 275,337$ 286,350$ 297,804$ O&M 101,244$ 105,294$ 109,506$ 113,886$ 118,441$
Contracted Services 62,400$ 64,896$ 67,492$ 70,192$ 72,999$ Special Services 28,600$ 29,744$ 30,934$ 32,171$ 33,458$ Insurance 14,801$ 15,393$ 16,009$ 16,649$ 17,315$
Other Departments 9,360$ 9,734$ 10,124$ 10,529$ 10,950$ Miscellaneous 7,176$ 7,463$ 7,762$ 8,072$ 8,395$
Sub-Total Annual Expenses 478,146$ 497,272$ 517,162$ 537,849$ 559,363$ Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 5,977$ 5,977$ 5,977$ 5,977$ 5,977$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve -$ -$ -$ -$ -$
Debt Service Charge -$ -$ -$ -$ -$
Sub-Total Reserve Funding 159,241$ 144,162$ 138,303$ 135,397$ 134,335$ Total Expenses 637,387$ 641,434$ 655,465$ 673,246$ 693,698$ Revenue 2025 2026 2027 2027 2029
Sales Revenue 371,527$ 410,095$ 452,661$ 499,638$ 551,485$ Uncollectable Receivables $ (743) $ (820) $ (905) $ (999) $ (1,103) Water Penalties -$ -$ -$ -$ -$
New Water Hook-ups -$ -$ -$ -$ -$
General Fund Contract Operator Payment 300,000$ -$ -$ -$ -$ General Fund Loan -$ 100,000$ 75,000$ 50,000$ 25,000$
Total Revenue 670,784$ 509,275$ 526,755$ 548,639$ 575,382$ Net Loss or Gain (Short/Over to Reserves) 33,398$ $ (132,159) $ (128,710) $ (124,607) $ (118,316) Net Cashflow (Contribution to Reserves) 192,638$ 12,003$ 9,593$ 10,790$ 16,019$ Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
$ (470,394)
$ 241,044
• The monthly bill for the average ¾”
inside residential customer would be
$96.68
• The monthly bill for the average ¾”
outside residential customer would be
$96.68
Rate Option #3 Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
¾” 63.44 69.72 76.72 84.46 93.02
1” 85.03 92.26 101.00 110.91 122.04

1.5” 120.33 131.73 144.71 159.16 175.21
4” 602.40 667.14 735.45 809.73 891.01
Rate/100 CF 5.54 5.93 6.35 6.99 7.71
Affordability (% MHI)
2025 2026 2027 2028 2029
Inside City
Limits

1.51% 1.65% 1.80% 1.98% 2.18%
Outside
City Limits

1.51% 1.65% 1.80% 1.98% 2.18%
Percent Increases - Rate Option #1
Standard Rates
2025 2026 2027 2028 2029
¾” 12-40% 10% 10% 10% 10%
1” 50-88% 9% 9% 10% 10%

1.5” 113-166% 9% 10% 10% 10%
4” 184-255% 11% 10% 10% 10%
Rate/100 CF 0-25% 7% 7% 10% 10%
Budget –
RO#3
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 254,564$ 264,747$ 275,337$ 286,350$ 297,804$ O&M 101,244$ 105,294$ 109,506$ 113,886$ 118,441$
Contracted Services 62,400$ 64,896$ 67,492$ 70,192$ 72,999$ Special Services 28,600$ 29,744$ 30,934$ 32,171$ 33,458$ Insurance 14,801$ 15,393$ 16,009$ 16,649$ 17,315$
Other Departments 9,360$ 9,734$ 10,124$ 10,529$ 10,950$ Miscellaneous 7,176$ 7,463$ 7,762$ 8,072$ 8,395$
Sub-Total Annual Expenses 478,146$ 497,272$ 517,162$ 537,849$ 559,363$ Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 5,977$ 5,977$ 5,977$ 5,977$ 5,977$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve -$ -$ -$ -$ -$
Debt Service Charge -$ -$ -$ -$ -$
Sub-Total Reserve Funding 159,241$ 144,162$ 138,303$ 135,397$ 134,335$ Total Expenses 637,387$ 641,434$ 655,465$ 673,246$ 693,698$ Revenue 2025 2026 2027 2027 2029
Sales Revenue 378,251$ 412,187$ 449,706$ 495,037$ 545,442$ Uncollectable Receivables -$ -$ -$ -$ -$
Water Penalties -$ -$ -$ -$ -$
New Water Hook-ups -$ -$ -$ -$ -$
General Fund Contract Operator Payment 300,000$ -$ -$ -$ -$ General Fund Loan -$ 100,000$ 75,000$ 50,000$ 25,000$
Total Revenue 678,251$ 512,187$ 524,706$ 545,037$ 570,442$ Net Loss or Gain (Short/Over to Reserves) 40,864$ $ (129,247) $ (130,759) $ (128,208) $ (123,256) Net Cashflow (Contribution to Reserves) 200,105$ 14,915$ 7,544$ 7,188$ 11,079$ $ (470,606)
$ 240,832
Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)

Rate Comparison
Inside Rates
Meter Size Current RO#1 RO#2 RO#3
Inside - ¾” 45.23 75.47 59.11 63.44
Inside – 1” 45.23 75.47 59.11 85.03
Inside - 1.5” 45.23 75.47 59.11 120.33
Inside – 4” 45.23 75.47 59.11 602.40
Rate per 100 CF 4.42 7.75 5.85 5.54
Outside Rates
Meter Size Current RO#1 RO#2 RO#3
Outside - ¾” 56.54 94.34 73.89 63.44
Outside – 1” 56.54 94.34 73.89 85.03
Outside - 1.5” 56.54 94.34 73.89 120.33
Outside – 4” 56.54 94.34 73.89 602.40
Rate per 100 CF 5.54 7.75 5.85 5.54
Questions on
Water Rate
Study or
Rates?
Next Steps
Proposed Next Steps
Today, 5/28/24
Council is being
presented the draft
rate study today for
comments
Finalize
Water
Rate
Study
6/11/24
Council will be
asked to select
a rate option
Start
Prop 218
Process
8/13/24
Prop 218
Hearing
9/2024
Implement
Rates
Requirements for Proposition 218
Public Notice - 45 days prior to public hearing
• Reason/basis for rate increase
• New rates
• Effective date
• Hearing date
• How to protest
• Notice will be in English and Spanish
Public Hearing
• If the majority of the parcels protest (owner or renter), agency shall not raise rates • ONLY WRITTEN protests will be counted at the public hearing • Last day to accept WRITTEN public protests
How to protest the rates
▪ Property owners or tenants subject to
the fees and charges may protest:
▪ By the date of the final hearing
▪ Protest must include:
▪ Parcel Number or address
▪ “I protest the rate increase”
▪ Signature
Questions on the Next Steps?
Conclusion
City of Trinidad
409 Trinity St
Trinidad, CA 95570
707-677-0223
Samantha Ryan
Assistant Field Manager
707-572-7465
Rural Community Assistance Corporation
DISCUSSION AGENDA ITEM 3

SUPPORTING DOCUMENTATION ATTACHED

3. Continued Discussion/Presentation regarding FY2024-2025 2025 Budget Preparation Budget discussion/presentation materials are being prepared and will be published to the meeting packet online as they’re developed throughout the weekend.

BUDGET SESSION
MAY 28, 2024 CITY COUNCIL MEETING

BUDGET STRUCTURE

GENERAL FUND SPECIAL REVENUES
• ADMINISTRATION COPS
• PUBLIC WORKS GAS TAX
• POLICE & FIRE TDA

PROPRIETARY FUNDS GRANT FUNDING
• WATER INFRASTRUCTURE
• CEMETERY LONG-RANGE PLANNING
REVENUE SOURCES - Overview

GENERAL FUND SPECIAL REVENUES
• PROPERTY TAX COPS (Federal Funded)
• SALES TAX GAS TAX (State Funded)
• TOURIST OCCUPANCY TAX TDA (State Funded)
• RENT & FRANCHISE FEES
• FEES FOR SERVICES PROVIDED

PROPRIETARY FUNDS GRANT FUNDING
• WATER (Rate Payer Funded) INFRASTRUCTURE
• CEMETERY (Plot Sales) LONG-RANGE PLANNING

GENERAL FUND
GENERAL FUND REVENUE SOURCES - Detail
• PROPERTY TAX

• SALES TAX (8.50% TRINIDAD Tax Rate)
• California State Retail Sales Tax Rate: 7.25%
• Humboldt County Measure Z add-on: 0.50%
• Trinidad District Tax Rate (Add-On): 0.75%
• Voter Approved for 4-years, beginning April 01, 2021. • City Council adopted Resolution 2024-08 on May 14 to place a 4-year continuation of the Add-On Sales Tax on the November 05 General Election ballot.

HUMBOLDT COUNTY-CITY TAX RATES as of APRIL 01, 2024
Eureka (9.25%) Blue Lake (8.75%) Rio Dell (8.75%)
Arcata (8.50%) Ferndale (8.50%) Fortuna (8.50%)
GENERAL FUND REVENUE SOURCES – Continued
• TOURIST OCCUPANCY TAX
• Voter Approved rate of 12% (as of April 01, 2023).
• RENT & FRANCHISE FEES
• PG&E, Optimum, Humboldt Sanitation, Town Hall, Harbor, etc. • FEES CHARGED FOR SERVICE
• Planning (CDP & Use Permits requiring Planning Commission Approval) • Building Permits
• Applicant fee recovery to offset expenses incurred

• INTEREST EARNINGS

SUPPLEMENTAL REVENUE SOURCES
• COPS – Community Oriented Policing Services
• Federal appropriation to States, distributed to Cities through County • Steady funding of approximately $150,000 each year
• Covers cost of HCSO contract for Police Services
• TRANSPORTATION
• Restricted for Streets, Roads, Circulation Expenses
• TDA, Gas Tax, SB1, HSIP, etc.
• GRANTS
• Primarily State funded programs to cover large infrastructure improvements, recreation enhancements, and long-range planning (coastal resources, resilience, etc.)

GENERAL FUND RESERVES
As of June 30, 2022

GENERAL FUND EXPENSE CATEGORIES

ADMINISTRATION
• Covers a significant portion of the City Manager, Clerk, Administrative Support salaries.
• Pays the bills that “keep the lights on”; public building utilities, office supplies, Municipal Code revisions, website hosting, etc.
• Covers the majority of contract staff services costs: Attorney, Accountant, Auditor, Planner, Building Inspector, and Technical Support.
• Funds majority of property, liability, and various other insurance coverages. • Contributes to local community service groups.

PUBLIC WORKS
• Covers the majority portion of public works staff salaries. • Funds street lighting, trail, and public building maintenance costs. • Pays for routine street related services provided by City Engineer. • Funds vehicle fuel maintenance, power equipment, street and trail signage, etc.

GENERAL FUND EXPENSE CATEGORIES (continued)
POLICE
• Funds a portion of the City Manager salary who oversees Public Safety operations. • Pays for annual Animal Control contract with the County Sheriff Dept. • Supplements public safety services that exceed the COPS revenue.

FIRE
• Cover honorarium for volunteer Chief and Assistant Chief. • Funds dispatch or cooperative services when required. • Pays for materials, supplies, and equipment.
• Fire & Rescue vehicle fuel and maintenance.
2024-2025 BUDGET GOALS & HIGHLIGHTS

GENERAL FUND
• Continue staff development, refine roles, and improve personnel structure. • Continued website development to enhance public engagement and access to documents, resources, and services.
• Refine Public Works staff structure and integrate with Water Department to support mutual tasks and projects.
• Continued Support of Library, Museum, Chamber, Land Trust. • Maintain Critical & General Services – Public Safety and Admin • Continued progress on the General Plan Update.

GENERAL FUND RESERVES
Profit/Loss by year from 2019 through December 30, 2024 2019: $186,254
2020: $179,813
2021: $147,319
2022: $202,325
2023: $208,742
2024: $212,000 *est.

GOALS & HIGHLIGHTS (continued)

PUBLIC SAFETY
• Contract Renewal HCSO, contract cost ($67,500) for FY2025, paid entirely with COPS funds. • Animal Control Services ($2,492) and Shelter ($3,774) Contracts paid with COPS funds. • Supplemental security services provided by Pacific Coast Security or the Community Ambassador program paid with COPS funds.
• Planning for Volunteer Fire Department mutual aid agreement, paid with General Funds.

PUBLIC WORKS
• Fund additional ½ time employee split with Water Department to begin reintegrating the Water and Public Works teams.
• Maintain commitment to fund trail system improvements with $10k budget to replenish funds depleted due to expenses related to winter 2023 closure of Old Home Beach. • Complete application to the State Recreation program to improve Tennis Court and Boardwalk. • Provide street maintenance support during summer 2024 HSIP construction projects. • Town Hall building improvements – paint, windows, etc.

STAFFING PLAN

ADMINISTRATIVE
• City Manager .75 FTE (Full-Time Equivalent)
• City Clerk 1.0 FTE Adams
• Grant Director .50 FTE Price-Hall
• Grant Administrator 1.0 FTE Cather
• Grant Admin Support .25 FTE Saunders (New/Temp)
• Project Manager 1.0 FTE Hakenen
• Clerk Assistant 1.0 FTE Souza
Total Admin: 5.5 FTE

PUBLIC WORKS
• Maintenance Supervisor .75 FTE Shipman
• Maintenance 1 .25 FTE Shadle
• Maintenance 2 .50 FTE Say-Gep
• Maintenance 3 .25 FTE Vincent
• Maintenance 4 .25 FTE Saunders
Total TPW: 2.0 FTE
STAFFING PLAN (continued)
WATER
• Chief Plant Operator* Contractor provided until further notice • T-3 CPO In-Training .50 FTE Lowery
• T-3 Operator Support .25 FTE Vincent
• T-2 Operator .50 FTE Anderson (New)
• T-2 Operator In-Training .75 FTE Shadle
• T-2 Operator In-Training .25 FTE Shipman
Total Water: 2.25 FTE
Total Projected Staff Needs for FY2024-2025: 9.25 FTE (13 Employees) Estimated payroll projection: $806,129
• Approximately $116,000 covered by grants
• Leaving $690,130 to be paid for with General and Special Revenue Funds Total Budgeted for FY2023: 8.75 FTE
• Payroll projected at approximately $743,000
• Approximately $160,000 covered by grants
• Leaving $583,000 to be paid for with General and Special Revenue Funds

WATER FUND
FY2023-2024 WATER FUND BUDGET MISSES
• Rate Analysis was not completed in FY2024.
• Continued interim contract cost through the entire year. • Increasing staff costs overall. In the absence of an experienced in-house Chief Plant Operator, staff collectively spent significant time involved in water system operations including grants, leak repairs, reporting, compliance, strategic planning, purchasing supplies, budgeting, and prioritizing tasks.
• High operating costs and a continued delay in the water rate update resulted in $1.1 million dollar capital improvement reserve fund to be used for Operating and Maintenance expenses.

2024-2025 BUDGET GOALS & HIGHLIGHTS
• Maintained T-3 Licensed Treatment Plant Operator as per State Law and continue to supply safe and reliable drinking water to all 325 customers. • Continue training and retaining vested, licensed drinking water operators. • Strategize exit plan from costly contracted Plant Operation by finding reliable in-house operators.
• Conclude rate study and implement new rates September 01, 2025. • Continued Luffenholtz Creek Flow monitoring.
• Budget for distribution line leak monitoring.
• Freeze spending on any project that does not involve immediate delivery safe and reliable drinking water to the customers, or a current grant project in-progress until the budget is stabilized.
• Provide daily staff support to large scale grant funded infrastructure projects slated for construction in 2024-2025.
• Evaluate upstream source resiliency projects started in 2021 and receive regular updates.

WATER FUND RESERVES
As of December 30, 2024
ANNUAL NET PROFIT/LOSS per year:
2019: - $ 40,971
2020: - $ 36,598
2021: - $235,228 Reserve balance FYE2021 est. = $1,170,000 2022: - $346,427
2023: - $523,584
2024: - $300,000 *estimated*
As of June 30, 2023, the Water Fund Reserve was $270,000.

As of December 30, 2023, the Water Fund overspent $130,686, leaving $136,416 in reserve.

Staff expects the Water Fund Reserve will be depleted on or before June 30, 2024.

STATE-LEVEL BUDGET INDICATORS
• For the past few years Governor Newsom had the luxury of calling his revised State budgets “unprecedented” and ”historic”. Last year he struck a much different tone, repeatedly emphasizing the value of prudence and restraint as he unveiled his 2024 revised budget proposal. This year 2025 he characterized the May budget proposal as a “return to normalization” and a focus on core services. • Tax collections and General Fund sales taxes, referred to as California’s volatile revenue system, came in below forecasts and increased the State budget deficit. • Budget cuts are being described by California Cities representatives as being aimed at programs that help California’s most vulnerable residents, such as homelessness, affordable housing programs.
• California will be reducing budgets and utilizing reserves to balance the budget, assuming steady but slow economic growth (not recession). • Most of the projects Trinidad would benefit from are protected by recent Federal climate investments and State climate bonds.

GRANTS IN

PROGRESS
FY2023

NEXT STEPS
• Staff to review April 30 Financial Statements (just prepared by bookkeeper on May 22) that include many significant revenue receipts and determine how the City performed in 2024.
• Receive Council input with priorities for discretionary spending. • Staff prepare a Final Draft of all funds revenues/expenditures with summary provided at the June 11, 2024 Council Meeting.