06-11-2024 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, JUNE 11, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, West, Tuttle, Breckenridge. Ladwig was absent. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Project Manager Jennifer Hakenen, Administrative Assistant Anton Souza, and Grant Administrator Angela Cather. Approximately (7) participants were present by video-conference, and (26) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION – No closed session.
IV. RECONVENE TO OPEN SESSION
V. APPROVAL OF THE AGENDA
Motion (West/Breckenridge) to approve the agenda as submitted. Passed 4-0.
VI. APPROVAL OF MINUTES –05-28-2024 cc2, 06-11-2024 cc, 07-09-2024 cc Minutes were not prepared in time. Will be reviewed at the next meeting.
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
West: HCAOG meeting. Planning to increase bus service to McKinleyville and Trinidad thanks to unmet transit need requests this year. Also discussed Humboldt Multi-media & Vibrant Neighborhoods planning project to improve walking and biking safety.
Breckenridge: Animal Advisory Committee met last night, and agreed on 3 items for the Council to consider; 1) Request a $500 budget for miscellaneous expenses, 2) Request services of City Attorney to develop Ordinance recommendations that sync City, County, and State laws, and 3) Citywide mailing during license renewal period with a message regarding aggressive dogs and refrigerator magnet with Animal Control reporting information.
Tuttle: No report.
Kelly: Attended changing of the guard ceremony on Trinidad Head for the Coast Guard Navigational Aide Command.
VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet, including the Town Hall would be closed on July 04, Trinity Street will be getting resurfaced next week.
Entrance to Stagecoach Road will be closed for 4 hours during paving. Water Tank & Pipeline project occurring on Westhaven Drive. Taste of Trinidad event in June. Chamber mixer in July at a STR on Patrick’s Point Drive.
RCAA planning Trinidad Head steps repair, and reviewing improvement concepts for the base of Axel Lindgren Trail. Recent rain was disruptive to the water plant, along with construction issue that severed the communication line that connects the water plant to the storage tanks. Coleman Engineering recent bill $14,000. Luffenholtz Creek flow measurement yesterday was 10.5 cfs.
HCSO Lt. McCall was not able to attend and summarize law enforcement monthly stats.
IX. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Unknown – Trinidad?
Report of aggressive and concerning dog encounter in Trinidad (area?) recently.
Ed Hanlon – Trinidad
My dog is licensed with Humboldt County. Am I required to have a City license too? Tyler James – Trinidad
Attempted to read public comment submitted in writing, entitled “Million Dollar Boondoggle” regarding Discussion agenda 6 (City Manager contract) but was interrupted by City Manager Naffah reminding the Mayor they should be offered later during the discussion topic. 06-11-2024 City Council Meeting Minutes Page 2
Jan West – Trinidad Civic Club
Presentation given, telling the story of the Memorial Lighthouse, tragedy to triumph. Introduced the leadership team, Patti Fleschner, Katrin Homan, and Dana Hope. Presentation included gratitude to Trinidad Rancheria Tribal leadership and staff, Lighthouse history, memorial purpose and commemoration, coastal erosion threatening the bluff, moving the lighthouse, initial placement and cost, 7 years of fundraising and permitting, site selection/offer, $136k expense for permitting and fees, donors, and final project results.
X. CONSENT AGENDA
1. Staff Activity Report – May 2024
2. Financial Statements – April 2024
3. Law Enforcement Report – May 2024.
4. Distribution of Tourist Occupancy Tax Funds to Community Organizations
5. Letter of Support for USDOT ATIIP, Little River Trail Project Funding.
6. Resolution 2024-10; Adopting a List of Projects for Fiscal Year 2024/2025 Funded By SB-1, The Road Repair and Accountability Act of 2017.
7. Van Wycke Trail Update
Commentary reflects this is a request from the Planning Commission. To clarify, it was a condition of approval made to make sure this stays in the Council’s realm due to public frustration directed at the Commission.
Request that it stays as a discussion topic, not a consent item.
No decision was made.
8. Trinidad Community Coastal Resilience Planning Project Update Planning Chair Aaron Hakenen requested pulling 7 for discussion.
Motion (Kelly/West) to approve the consent agenda as amended. Passed 4-0.
XI. DISCUSSION/ACTION AGENDA ITEMS
1. County of Humboldt Presentation – Prioritizing Essential Services in an Era of Natural Disasters.
County CAO Sean Quincy and County Public Works Director Tom Mattson presented budget challenges and how that’s affecting the County’s ability to provide essential services. Announced the County is exploring placing a sales tax measure on the November ballot to ensure the revenues stay in Humboldt. As the State budget deficit grows, more takeaways and unfunded mandates are on the way. Natural disaster preparedness needs involve Federal Disaster declarations, with FEMA funding difficult to obtain. Humboldt County has some of the worst pavement conditions in the State, with nearly $500 million in maintenance needs.
Recent community survey showed top priorities are preparing for disasters, maintaining 911 emergency response, community services for medical and first responders after natural disasters, expanding bus services, homelessness, climate action, and maintaining local streets and roads. Asking all residents of Humboldt County to provide additional feedback through the various channels provided through the County’s website.
Considerate of the dynamic having multiple tax measures on the ballot (both City and County), and open to discuss with City staff if questions arise.
Public comments included:
Janine Volkmar – Trinidad Area
Curious about scientific polling procedures. Does the poll include calling or other methods? Quincy explained that polling is done by contracted experts, not County staff, following best practices to ensure result accuracy.
Lorella Moore – Trinidad Area
High gas prices with gas taxes for roads. What happens to all that revenue? Mattson explains that 60% of that tax goes to the State, 40% goes to local agencies (50% split between cities/county). The way it’s allocated puts rural counties with low populations at a huge disadvantage. 06-11-2024 City Council Meeting Minutes Page 3
Jacque Hostler – Trinidad Rancheria Executive Director
Worked with Tom since 2002. He does a great job with limited revenue. The State is considering a new “road charge program” taking the place of the fuel tax, since many vehicles are now electric. There will be a draft plan released by the end of June for comment. Will share with the City if requested. Mattson echoed, adding EV’s do not pay gas tax but contribute to road deterioration.
2. Continued Discussion/Decision on Proposed Water Rate Analysis RCAC Assistant Field Manager Samantha Ryan explained that the initial water rate study was presented to the City Council (Council) on May 28, 2024. Three rate options were produced for feedback from the Council and the public.
Concerns brought up during and after the Council meeting included:
• The budget may need to be modified.
• Contracted operator services may need to be continued for longer than previously discussed. • Employee wages may need to be adjusted to ensure a T3 operator can be secured. • In-house contracted services may need to be adjusted to capture potential change in their demand over the next 5-years.
• Grant payroll allocations may need to be reconsidered. • Additional rate options may need to be explored.
o Flat base rate option with a uniform usage charge
o A rate option that reanalyzed the inside vs. outside cost allocation and the meter size allocation RCAC staff and City staff have been working on addressing these concerns over the past two weeks but need guidance from City Council prior to producing a final rate study report. RCAC is requesting the following guidance from the City Council and City Staff:
• Finalized budget numbers that accurately reflect expected expenses in FYE 2025- FYE 2029. • Which rate options would Council like presented in the final rate study report? o Initial rate options
o Flat rate options
o Do inside vs. outside cost allocations and meter size allocations need to be revisited to produce a rate option with a variable base rate based on meter size and location.
The following information is included in the meeting packet for Council to discuss:
• The initial rate options presented on May 28, 2024.
• The budget used in the initial rate study. Budget line items that City staff have mentioned since 5/2/2024 as potentially needing updated are highlighted in yellow. For the line item for contracted services, the initial rate study budget amounts have been struck through and replaced with budget numbers suggested by City staff the week of 6/3/2024 for consideration.
• Two new two flat base rate options with a uniform usage charge. o The first flat rate option uses the initial rate study budget. o The second flat rate option uses an updated budget that incorporates the Contracted Services changes recommended by City staff the week of 6/3/2024.
Regarding affordability, Rate Option 3a is affordable. Under 1.5% is affordable. Above 1.5% is medium risk.
Above 2.5% is considered unaffordable. $300,000 General Fund gift and $250,000 future loan is included in the rate structure budget. No funding of reserves during the rate period of 5 years.
Rate 3b with revised budget from Staff includes a uniform usage charge with the same rate for inside and outside the City. It’s considered a medium risk for affordability. Overall $240k in reserve after 5 years.
Council comments included:
Kelly: Is there a set amount of water included in the base rate? It’s been 7-years since the last increase and a 25% overall inflation rate. Ryan stated no, because that would challenge Proposition 218 case law. 06-11-2024 City Council Meeting Minutes Page 4
Kelly continued, stating revenue was currently at approximately $300k/year with expenses touching $640k. This is a simple math problem. Increase revenue and cutting costs will be required. I’m committed to doing something we should have done much sooner – find a reliable T-3 Operator and move Coleman Engineering out of Water Plant operation contracting. The meter size model would have too abrupt of an increase in too short of time. I think we should absorb this. The Rancheria has done a lot for the City’s water system. The General Fund loan has to happen to offset rate payer burden. It’s fair to remove the in/out city differential. Because of Prop 218 I prefer to keep it simple.
West: Many things have happened, including not raising rates for so many years, that brought us to this point.
It’s impossible to get around this. We’re in a bad situation, and the way things happened is unfortunate. We should have tried recruiting better, but now we’re looking for solutions to get the water system operation under control. We have to make up for 7-years without increases, and stabilize costs quickly. The City cannot afford going on like this any longer. No one likes rate increases but we have to do the best we can to keep the system healthy.
Breckenridge: As soon as I moved here, I heard about the water wars. Should we switch to Humboldt Bay or use our existing water supply. We should revisit this at some point, but right now we have to work with what we have.
Tuttle: I’d like to have all the options in one place for everyone to see.
Public comment included:
Janinie Volkmar – Trinidad Area Resident
I’m a water customer who lives outside city limits and have been paying more than inside city residents for 40 years. A Councilmember once told me it was because I lived farther away. Another said I pay different taxes than City residents, and another said it was a State Bond debt issue, and another said “because we can”. I paid $7,500 for a hookup. City residents are only charged $4,000. I’m lucky to have water. It is a basic need. I encourage you to equalize the rates. I’m not a second-class citizen, and neither are the 100 families being charged the higher rate. I will only support the increases if the rates are equitable.
Aaron Hakenen – Trinidad
Why was a usage-based structure not chosen? By not doing that conservation is dis-incentivized. Ryan noted that Proposition 218 case law doesn’t recommend tiered rate structures, unless it’s financially justified – which is difficult.
Hakenen continued, thanking RCAC and the Council for recognizing a need to recruit and hire an in-house T-3 Operator. I’ve spoken about this many times. We’ve been stuck on this merry-go-round without making a change for too long. Pleased to hear acknowledgement and support by the Council to do something different.
My fear is we’ll find the unicorn T-3 and they leave after learning their value.
Paula Levine – Trinidad Area resident
Recommend 3a or 3b Rate Options.
Sherry Vanderpool – Trinidad
If rates go up, food prices go up.
Mayor Kelly requested the City Clerk read aloud the public comment letter submitted by resident Mike Morgan, owner of the Trinidad Bay Bed & Breakfast and former Councilmember, titled “Million Dollar Boondoggle, City Manager Failures with the Water Department”. In summary, the letter demanded City Manager Naffah be terminated, and policies be put in place to ensure rate payers are protected from Council/Staff negligence.
Requested saving money be having Councilmembers oversee departments and the City Manager position left vacant.
Mayor Kelly noted that the Council has not had discussions regarding personnel performance directly related to this topic.
Council comments included:
West: Rate equalization, with option 3a and 3b are my recommendations. It seems fair. 06-11-2024 City Council Meeting Minutes Page 5
Kelly: I agree with West. We discussed a gift of $300k and a loan of $250k. Ideally we get our costs under control and don’t need the loan. Both options 3a and 3b include the loan. I would like to make a decision tonight. We’re hemorrhaging money. The sooner we make a decision, the sooner we can slow the bleeding.
City Clerk Adams noted tonight’s budget numbers are close. We don’t have a fully funded T-3 Operator fund figured out. In theory we’ll make up the difference in the transition between the contracted cost and the T-3 onboarding.
Ryan noted they’re very similar rates with similar bottom lines. Finding an in-house T-3 Operator will make a difference. The budget doesn’t include an increased rate to attract a T-3 Operator. I still have to develop a final report. The numbers you see tonight are preliminary rate options depending on your final budget numbers.
Motion (Kelly/Breckenridge) to adopt Rate Option 3b, with the understanding that should Coleman Engineering get replaced by a T-3 the cost may go down, reducing the need for a $250k loan, and possibly not increase as much in subsequent years. Council and Staff will begin recruiting and retaining an in-house T-3 Operator as soon as possible. Passed 4-0.
3. Discussion/Decision regarding Resolution 2024-11; Adopting the FY2025 Budget. a. Resolution 2024-12; Authorizing a One-Time General Fund Transfer of $300,000 to the Water Fund for Emergency Budget Stabilization.
b. Resolution 2024-13; Recognizing Water Fund Reserve Status and Updating 2017 & 2020 Fiscal Reserve Policies to Align with Water Rate Update Targets through 2029.
City Clerk Adams explained that two meetings were held in May to help carve a path to a final draft budget proposal on June 11. On May 14 staff built on the January mid-year review by first reviewing the tools used to develop the budget structure and monitor fund performance throughout the year. The second part of the discussion peeled back a layer and focused on the current year priorities, identified achievements, and graded the overall health of the General Fund and Special Revenue Funds. The takeaway from the May 14 meeting was how the Water Fund instability was rippling through the General Fund and making forecasting a challenge.
At the second meeting on May 28th staff presented detailed information on the General Fund reserves and how they are assigned, committed, or unrestricted. More importantly, staff emphasized how the General Fund reserve could play a critical role in stabilizing the Water Fund as the Capital Reserve fund was depleted over a two-and-a-half-year period to cover very high Operating & Maintenance costs incurred by hiring an outside engineering firm to run the Plant.
Also at that that meeting, staff shared the current staffing plan and the financial statements for FYE June 30, 2023, and through December 31, 2023. The statements were reconciled by past City Auditor Ralph Marcello in the absence of a contract with a new CPA to conduct Audits for the City. The City Council tasked the City Manager to prioritize this task. The Council also provided the following input to staff for inclusion in the final budget:
• Invest in maintenance and upkeep of Town Hall, and recreation assets such as trails and parks. • CERT Program funding for ongoing trainings and program support ($3,500). • Establishment of a reserve fund committed to utility undergrounding. • Prioritize a strategy to recruit an in-house T3 Chief Water Plant Operator. • Prioritize developing a staffing plan and salary schedule, in accordance with the Employee Policy and Procedure Manual, that aligns staff responsibilities and wages with the needs of the City, encourages retention, and rewards advancement.
Along with maintaining and enhancing current service levels provided to the City, the current draft of the 2025 Budget aims to provide a continued focus on transitional stability for the Water Department. Staff emphasizes that this is a “working draft” that will need adjustments as the year progresses. There are a number of challenges the City faces this year, starting with finding a water rate solution that protects and rebuilds the financial integrity of the Water System, and ending with the .75% Sales and Use Tax that will go before the voters in November.
The proposed budget includes an accurate assessment of what’s to come this year, projecting conservative deficit spending in a healthy manner. For perspective, it is important to understand that the General Fund has 06-11-2024 City Council Meeting Minutes Page 6
been building over the last 5-years due to a combination of robust economic activity affecting the 95570 area (through tourism, increasing property values, and a resilient tax base).
Staff feels the proposed budget accurately reflects the desires of the community, based on priorities set by the Council. The draft includes revenue and expenditure budget worksheets for each of the fund categories; General Fund: Administrative, Public Works, Police, & Fire Restricted Funds: Water & Cemetery
Special Revenues: Gas Tax, Transportation (TDA), & COPS A recap of Fiscal Year ending June 30, 2023, along with projections for Fiscal Year ending June 30, 2024 were presented in summary formats for comparative purposes at prior meetings.
FUND DESCRIPTION & FORECASTS
GENERAL FUND: The City’s conservative approach to spending, coupled with steady revenues from the baseline economy and significant contributions from visitors has helped build the City’s reserves over time.
Four primary expense funds (Administration, Police, Fire, and Public Works) are supported by discretionary revenue received through taxes and fees for service.
Revenues: Sales and Occupancy taxes are volatile revenue sources. They are strong when the economy is healthy, but easily disrupted by natural disasters such as wildfires, droughts, pandemics, or human-triggered disasters such as housing or market crashes. It is common for cities that are primarily funded by fragile revenue streams to maintain healthy reserves. Since 2005 Trinidad City leaders have prioritized fiscal stability and responsibility, and the $2.4 million General Fund reserve fund balance exemplifies that commitment.
Revenue priorities for FY2025 include:
• Provide detailed support an analysis of Sales Tax revenue leading up to the November election. • Update Building Department Fee Schedule.
• Update Cemetery Plot rates.
• Monitor reserves and cash-flow needs in a manner that maximizes interest earning potential. • Analyze and recognize fiscal impacts of the Trinidad Harbor Properties Fee-To-Trust status.
Reserves: The reserves provide short-term insurance to shield the City from sudden changes, to use as matching funds to leverage larger grant funding, provide cash-flow support during large-scale grant construction phases, and to stabilize the budget in an emergency. Several of the following situations are examples of how the City will use the reserves this year;
• Emergency Water Fund Budget Stabilization – Immediate transfer of $300,000 on July 01 to provide short-term Operation & Maintenance stability while the new water rates are being developed. • Maintain public buildings and important city assets such as trails and recreation infrastructure. • Provide salary incentives to encourage employee retention with increased responsibility. • Cover increasing costs due to State of Federal mandates and regulations. • Utilize for cash-flow needs during peak grant project outflow demand periods. • Develop a program committed to save for future underground utility projects.
EXPENSES
Administration (201): The budget for this category includes a significant portion of in-house and consultant staff that help run the City, and their expenses are based on educated assumptions as to what issues the City may face in the upcoming year. The City will begin recruiting a new manager in July, which will likely have an impact overall on the amount of time billed to the City by contracted staff during the orientation phase.
FY2025 Revenue Projection: $923,732.
Operating Expenses: $959,556
Difference: ($36,824) Covered by reserve funds if needed. 06-11-2024 City Council Meeting Minutes Page 7
Expenses and priorities for the Administration fund include:
• Staff wages & benefits for 2.80 FTE employees with a 4% COLA determined by the City Manager. • City Attorney, Planner, Building Inspector, Accountant, Auditor, and Tech Support. • Utility costs for public buildings; Town Hall, Annex, and Library. • Office Supplies, Equipment, and Technology improvements to enhance audio quality of meetings. • Website, Municipal Code, and Recordkeeping Expenses.
• Community Group support from T.O.T. Allocation.
Public Safety (301 & COPS): Due to an adjustment made by the Humboldt County Sheriff’s Office (HCSO), the contract cost for FY2024 & FY2025 has been reduced to $67,500, which is a significant decrease from the prior years. The City of Blue Lake was forced to inquire about the SO’s rate calculation method last year after discovering the projected contract cost was unaffordable. Their inquiry led to a wholesale recalculation for both cities. As a result, COPS grant funding will cover the majority of Police, Animal Control, and Private Security expenses for the City of Trinidad in FY2025.
Fire (401): The Trinidad Volunteer Fire Department remains in-tact after the well-deserved retirement of Tom Marquette. Thanks to the goodwill and dedication of life-long community resident Shawn Worth, the department remains staffed and committed to providing Trinidad with emergency volunteer fire and first responder coverage.
The CERT program will also get a boost this year with a $3,500 budget for program training and expenses, tracked through the Fire Department budget.
It is important to note that the City’s investments in public safety benefit the community as a whole. The CERT program, for example, has initiated enhancements to the HAM Radio system that is vital to emergency personnel communications during an emergency. The City Council is committed to doing everything it can to enrich emergency preparedness programs that benefit the entire community.
Public Works (501): The Public Works Fund has been the recipient of significant offsets in employee labor costs over the past two years. Otherwise known as “grant payroll allocations” these offsets are a result of grants that have eligible amounts programmed in to cover staff time involved in executing the projects. In FY2025 there is an estimated $28,000 to supplement Public Works staff time, down from an estimated $95,000 in 2024. With a growing list of non-grant funded Public Works projects slated for FY2025, the result is a higher wage burden on the General Fund.
Expenses and priorities for the Public Works fund include; • Staff wages & benefits for 2.35 FTE employees with a 4% COLA determined by the City Manager. • Annual Stormwater Discharge Permit to the State Water Resources Control Board. • City Engineer expertise on general public works projects, representation on technical advisory committees, regional transportation discussions, and assistance with funding allocations distributed by State and Local agencies.
• Right-of-Way and ongoing trail maintenance.
• Vehicle fuel and maintenance.
• Public building and facility maintenance.
• $50,000 in seed money from reserves to establish an underground utility fund.
SPECIAL REVENUE – WATER FUND
The cost to operate the Trinidad Water Treatment Plant continues to rise. A simple way to understand why is to separate expenses in two categories, hard and soft costs, and evaluate the trends in each category. Hard costs have risen predictably, but soft costs have increased significantly.
Hard costs include general operating expenses such as energy costs to run the plant, in-house licensed personnel, treatment technology, filters, hardware, vehicle and machinery, treatment processes, etc.
Soft costs include technical and engineering staff time required to evaluate demand from a growing community, future planning, drought and watershed resiliency consulting, and transition back to in-house staff Plant operation.
06-11-2024 City Council Meeting Minutes Page 8
At year-end June 30, 2024 the water system will have depleted its reserve and will rely on an injection of capital from the General Fund to operate until new rates are established to stabilize it. Nearly $1.1 million in Capital Improvement reserves have been used to cover operating expenses over the last four years. According to past audits, the fund balance decreased by the following amounts each year since 2019:
• 2024: -$ 270,000 est.
• 2023: -$ 525,222
• 2022: -$ 346,427
• 2021: -$ 235,228
• 2020: -$ 36,598
• 2019: -$ 40,971
The cost of operating a small water system, maintaining its efficiency, in a very desirable area to live, functioning to provide a vital resource to a community that has emphasized a desire to live “within its means” (or local watershed), will prove to be a challenge for the rate payers. The water system will rely on reserve funds to operate until the rates are adjusted to reflect the current cost of running and maintaining it.
A rate study was initiated in September 2023 with Rural Community Assistance Corporation (RCAC), and is expected to conclude with new rates implemented by September 01, 2024. The budget reflects revenues based on the new rate structure, and can be amended if the proposed rates are modified or do not materialize by September 01.
Water Fund expenses and priorities for FY2025 include:
• Budget alignment and staffing plan developed in conjunction with the 5-year rate study. • Staff wages & benefits for 3.0 FTE total employees with a 4% COLA determined by the City Manager. • Restrict spending to only projects vital delivering quality drinking water to customers and current grant projects in-progress until the fund is stabilized. Projects outside that scope should be brought to the Council for review and authorization on a case-by-case basis.
• Develop and implement a recruitment strategy to hire an in-house T3 Chief Water Plant Operator. • Upon adoption of the budget on June 11, authorize the immediate part-time hire of a known licensed T2 Water Shift Operator applicant in accordance with the Employee Policy hiring procedures. • Consider preparing for an additional $300,000 loan from the General Fund to the Water Fund if needed and as described in the rate study. Details will be finalized, drafted in a Resolution, and brought to the Council for review and consideration when appropriate.
STAFFING PLAN AND WAGES: The FY2025 identifies 11 employees in the following categories:
Contract City Manager: .75 FTE (Full-Time Equivalent)
Permanent Employees:
City Clerk: 1.0 FTE Admin
Grant Director: .33 FTE Admin
Grant Administrator: 1.0 FTE Admin
Assistant Clerk: 1.0 FTE Admin
Admin. Support/Project Manager 1.0 FTE Admin
Public Works Supervisor: 1.0 FTE Public Works/Water
Public Works Maintenance: .50 FTE Public Works/Water
PW/Water Operator-In-Training 1.0 FTE Public Works/Water PW/Water Utility Shift Operator .50 FTE Public Works/Water Water Utility Shift Operator .50 FTE Water Department
As per direction from the City Manager, a 4% COLA adjustment has been factored into the FY2025 budget for the following positions; City Clerk, Grant Director, Assistant Clerk, Project Manager, and Water Utility Shift Operator.
The following positions have received wage adjustments due to a shift in responsibilities and or a wage restructuring: Grant Administrator, Public Works Supervisor. 06-11-2024 City Council Meeting Minutes Page 9
The following positions are at a wage issued upon hiring, based on a defined salary structure; Public Works Maintenance, Water Operator-In-Training, and Water Utility Shift Operator.
FY2025 Staffing priorities include:
• City Manager recruitment.
• Develop and implement a recruitment strategy to hire an in-house T3 Chief Water Plant Operator. • Conduct annual evaluations and maintain accurate personnel files and training requirements. • Develop a staffing plan and salary schedule, in accordance with the Employee Policy and Procedure Manual, that evaluates staff responsibilities and wages with the needs of the City, encourages retention, and rewards advancement.
• Freeze hiring on unclassified positions until authorized by the Council with an approved job description, justification of the position, and a funding plan.
FY2025 BUDGET GOALS & SUMMARY
1. Utilize reserves established from prior fiscal years, if needed, to support staff transitions.
2. Evaluate and update charges for services to reflect the times (General & Special Funds).
3. Maintain current law enforcement coverage and improve vital government services.
4. Reclaim Water Plant Operations from licensed, interim consultants.
5. Update the Water Rate Structure to reflect the true costs of operating a small water system.
6. Maintain and invest in public buildings, parks, and property.
7. Support community groups that enrich the community for locals and visitors, as they emerge from pandemic hibernation.
8. Continue promoting and participating in an inclusive dialog with Tribal Governments.
9. Continue grant programs that will help the City satisfy several elements of the General Plan update.
FY2025 Budget recognizes a slight operating deficit, but also identifies several revenue sources that can be tapped to offset costs from the General Fund if needed to balance the budget as presented. If revenue sources exceed expectations, the operating budget will balance by year-end 2025. $300,000 from reserves will used to help stabilize the Water Fund during this pivotal rate-restructuring year, with an additional loan to be determined if necessary and developed in conjunction with the rate study.
Council comments included:
Motion (West/Tuttle) to adopt;
a. Resolution 2024-11; Adopting the FY2025 Budget.
b. Resolution 2024-12; Authorizing a One-Time General Fund Transfer of $300,000 to the Water Fund for Emergency Budget Stabilization.
c. Resolution 2024-13; Recognizing Water Fund Reserve Status and Updating 2017 & 2020 Fiscal Reserve Policies to Align with Water Rate Update Targets through 2029 Passed 4-0.
4. Discussion/Decision to Authorize Purchase of a 2016 Nissan Frontier through a Private Party Sale to Supplement the Public Works/Water Department Fleet.
City Manager Naffah explained that the City’s Public Works Department needs another small truck. Staff has located a 2016 Nissan Frontier King Cab in very good condition with 104,493 vehicle miles. The Kelley Blue Book value for a private party sale ranges from$9,586 to $11,721. The private party is willing to sell the pickup truck to the City for $9,500. In addition, after purchase the truck will likely need up to an estimated $1,000- 1,500k for outfitting; box, emblems, tools, amber light, and 2-way radio system. The cost for the truck and outfitting will be allocated to the General Fund.
Council comments included:
Kelly: I’d like to see the City consider transitioning to electric vehicles at some point.
Breckenridge: Grants don’t show up in the General Fund or Special Revenue Fund budgets because they cover other things, correct? Adams confirmed yes, that grant funding typically reduces the need for General Funds to cover infrastructure or long-range planning projects. 06-11-2024 City Council Meeting Minutes Page 10
Motion (West/Tuttle) to authorize spending $9,500 from the General Fund for the purchase of the 2016 Nissan Frontier and additional outfitting to Supplement the Public Works/Water Department Fleet. Passed 4-0.
5. Discussion/Decision to Approve Contracts with Humboldt County Sheriff to Provide Animal Control and Shelter Services to the City of Trinidad.
City Manager Naffah explained that the City of Trinidad negotiated with the Sheriff’s Office contracts for both Animal Control and Animal Shelter Services. Because of a new formula utilized by the Sheriff's Office, the cost of these services will be lower this coming fiscal year. • Animal Control Services will be $2,492 for fiscal year 2024-25 • Animal Shelter Services will be $3,774 for fiscal year 2024-25 There were no public or Council comments.
Motion (Kelly/Breckenridge) to approve contracts with the Humboldt County Sheriff’s Office to provide Animal Control and Shelter Services to the City of Trinidad. Passed 4-0.
6. Discussion/Decision to Accept Retirement of City Manager Eli Naffah Effective at the end of the Contract period, September 12, 2024.
City Manager Naffah submitted and read a letter dated June 04, 2024 announcing his plan to retire in September when his contract expires, and offering availability to work beyond that date as needed during the transition to a new manager.
There was no public comment.
Motion (Kelly/West) to accept City Manager Eli Naffah’s resignation effective September 12, 2024.
7. Discussion/Decision to Appoint a Two (2) Councilmember Task Force to Develop and Implement a City Manager Recruitment Process.
City Manager Naffah explained that the task force typically reviews applicants and brings top 3 to the Council for complete interviews. Councilmember West agreed to participate. Councilmember Tuttle nominated Ladwig.
Kelly agreed and offered to help as well.
Public comment included:
Aaron Hakenen – Trinidad
Actively survey stakeholders when drafting the needs of a future manager prior to recruitment.
Motion (Kelly/West) to appoint West and Ladwig as the task force to develop and implement the City Manager recruitment process. Passed 4-0.
8. November 2024 City Election & Sales Tax Measure Calendar City Clerk Adams pointed out specific calendar items that will occur prior to the next meeting. The following calendar has been updated with details involving candidate nomination period and upcoming deadlines for reference. The calendar helps staff stay on top of deadlines but also keep the information before the public in a formal way. We have missed deadlines before and the Election Code and County Election Staff is not very forgiving. I’d like to avoid this at all cost.
June
• Adopt FY 2024-2025 Budget
• Prepare/Present/Announce the upcoming election season calendar (see below July-August) • Send Resolution requesting Election Consolidation to County Elections and Clerk of the Board July
• July 01-15: Publish Election Notice for (2) Upcoming November Council Seats & Sales Tax Election in town, and in the July 10 edition of the Mad River Union.
• July 15: Candidate Nomination Period opens.
06-11-2024 City Council Meeting Minutes Page 11
August
• August 06 (or before): Publish Notice to Accept Arguments For/Against Sales Tax Extension. • August 09: Filing deadline closes for City Council incumbents and candidate nominees. Deadline extends to August 14 if no incumbents file.
• August 14: Arguments For/Against Sales Tax Extension due. Rebuttal period opens. • August 16: Rebuttals to Arguments For/Against Sales tax Extension due. • Adopt Ordinance that will authorize the California Department of Tax & Fee Administration to implement the Sales Tax Extension should it pass.
• Publish Sales Tax Legal Notice in the Mad River Union.
September
• No deadlines
October
• Publish notification of (2) upcoming Planning Commission vacancies November
• General Election, Tuesday, November 05, 2024.
December
• When County Elections results are certified, swear in new Council members, appoint Mayor, and re-distribute or confirm Committee/Commissionership assignments.
No decision was made. Presentation item only.
FUTURE AGENDA ITEMS
- General Plan Update.
- Ongoing Trails Update.
- Humboldt Bay Municipal Water District Connection Consideration ADJOURNMENT: 9:10pm
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor