City Council Meeting Agenda: 09-24-2024 Page 1
Posted: Friday, September 20, 2024
NOTICE AND CALL OF THE SECOND REGULAR MEETING
OF THE TRINIDAD CITY COUNCIL
The Trinidad City Council will hold a regular meeting on TUESDAY, SEPTEMBER 24, 2024, at 6:00 PM
at the Trinidad Town Hall, 409 Trinity Street, Trinidad, CA.
CLOSED SESSION SCHEDULED AT THE CONCLUSION OF OPEN SESSION 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: 815 6300 9770 Passcode: 506149 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. APPROVAL OF AGENDA
IV. APPROVAL OF MINUTES – 05-28-2024 cc2, 06-11-2024 cc, 07-09-2024 cc, 08-13-2024 cc V. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
VI. STAFF REPORTS – City Manager & Humboldt County Sheriff Dept.
VII. 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.
VIII. CONSENT AGENDA All matters on the Consent Agenda are considered routine by the City Council and are enacted in one motion. There is no separate discussion of any of these items. If discussion is requested by any Council member, that item is removed from the Consent Calendar and considered separately. A single opportunity for public comment on the Consent Agenda is available to the public.
1. Staff Activity Report – August 2024
2. Financial Statements – July 2024
3. Law Enforcement Report – August 2024
City Council Meeting Agenda: 09-24-2024 Page 2
4. Second Reading of Ordinance 2024-02; Zoning and General Plan Amendment request to change the zoning and general plan designations of the property from PR – Public and Religious to SR – Suburban Residential. Narelle 2021-04; Located at 12 Berry Road; APN: 515-331-016, and Resolution 2024-15; Authorizing Staff to Submit an LCP Amendment to the Coastal Commission for the Rezone.
5. Second Reading of Ordinance 2024-03; Extending the .75% Transactions and Use Tax for General Purposes to Continue to be Administered by the California Department of Tax and Fee Administration
6. Trinidad-Westhaven Emergency Water Service Intertie Grant Project Update
7. Resolution 2024-16; Adopting CalTrans Local Assistance Procedures Manual Chapter 10 – Consultant Selection Dated January 2024.
8. First Amendment to the City Manager Employment Agreement.
DISCUSSION/ACTION AGENDA ITEMS
1. Prop 218 Public Hearing on Water Rate Increase and Consideration of Adopting Resolution 2024-17; Amending Fees and Charges for Water Rates.
2. Speed Humps update for Ocean and View Streets/Consider options.
3. Discussion/Decision to Appoint Two Councilmembers for a Tribal Consultation Government-toGovernment Consultation request from the Trinidad Rancheria.
4. Update on Argument in Favor of Measure L Unanimously Approved by the City Council in August.
IX. ADJOURN TO CLOSED SESSION
2. PUBLIC EMPLOYEE APPOINTMENT (Gov. Code section 54957(b)(1).) Title: New/Replacement City Manager
3. PUBLIC EMPLOYEE APPOINTMENT (Gov. Code section 54957(b)(1).) Title: Water Chief Plant Operator X. RECONVENE TO OPEN SESSION
XI. FUTURE AGENDA ITEMS
XII. ADJOURNMENT
APPROVAL OF MINUTES FOR:
MAY 28, 2024 CC2
JUNE 11, 2024 CC
JULY 09, 2024 CC
AUGUST 13, 2024 CC
Supporting Documentation follows with: 34 PAGES
05-28-2024 City Council Meeting II Minutes Page 1
MINUTES OF THE SECOND REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, MAY 28, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, Breckenridge. West attending by videoconference. Ladwig was absent. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Project Manager Jennifer Hakenen, Administrative Assistant Anton Souza. Grant Director Becky Price-Hall, Grant Administrator Angela Cather, and City Planner Trever Parker attending by videoconference. Approximately (6) participants were present by video-conference, and (5) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION
1. Personnel Exception 54957 - City Manager Performance Evaluation IV. RECONVENE TO OPEN SESSION – no reportable action taken.
V. APPROVAL OF THE AGENDA
Motion (Kelly/Breckenridge) to approve the agenda as submitted. Passed 4-0.
VI. APPROVAL OF MINUTES – No minutes submitted for review.
VII. ITEMS FROM THE FLOOR – No items from the floor presented. (Three (3) minute limit per Speaker unless Council approves request for extended time.) VIII.CONSENT AGENDA
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.
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.
Motion (Breckenridge/Tuttle) to approve the consent agenda as submitted. Passed 4-0.
IX. DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Decision to Appoint Two (2) Councilmember Representatives to Participate in a Government-toGovernment Meeting with the Trinidad Rancheria.
City Manager Naffah explained that 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 and the fee-to-trust status. The request for a meeting was made on May 8, 2024. No specific meeting date was selected yet.
Public comment included:
Jacque Hostler – Trinidad Rancheria Executive Director
The Rancheria tries to hold G2G meetings during Tribal Council meetings, the next being on June 13.
Customarily the Mayor or Mayor Pro-Tem participates, but we’re happy to meet with any members appointed.
Motion (West/Breckenridge) to appoint Tuttle and Kelly to participate in the G2G with the Rancheria as requested. Passed 4-0.
2. Presentation/Discussion/Decision regarding 2024 Water Rate Study City Manager Naffah explained that the City is overdue for a water rate study. This study is being conducted by Rural Community Assistance Corportaion (RCAC), with funding provided by the USDA. Introduced RCAC representative Samantha Ryan.
Ryan explained the services RCAC provides to rural communities. The water rate study findings have resulted in 3 options provided. Comments will be taken today and staff will return on June 11 with responses and/or 05-28-2024 City Council Meeting II Minutes Page 2
revised options. It is industry standard to revise rates every 5 years. The last study was done in 2012, with the last 2.5% CPI increase applied on 2017. Since then inflation has climbed 25%. Operating costs have increased significantly due to the hiring of Coleman Engineering after the loss of the in-house T-3 operator.
The rate study process examines the revenue requirements, cost of service analysis, and develops a rate design. The current status of the water enterprise fun is based on FYE2022. Expenses that year was $688,138.
Revenue was $331,370. The system lost $356,768. FYE2025 Rate Study budget expects expenses at $637,387, with revenue of $338,000, again losing approximately $299,000.
Water Operating Fund expenses reached a peak in 2023 of over $700,000 due to the high cost of Coleman Engineering to operate the system, along with paying in-house staff in-training. The fund continues to spend at an alarming rate, depleting all the remaining capital improvement funds.
The Capital Improvement Fund includes all assets, installation dates, and life expectancy. A replacement plan is developed to anticipate future expenses. Typically RCAC and State agencies like to see higher amounts of cash to replace specific infrastructure. The City of Trinidad has an aggressive grant program that has successfully achieved funding to replace aging infrastructure, so the cash component in this rate study has been reduced to make the rates more affordable.
RCAC recommends collecting $152,264 from customer rates annually. $761,230 should be collected 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.
Public questions included:
Dwight Miller – Trinidad
How much money is currently left in the reserve? City Clerk Adams explained that June 30, 2023 approximately $277k. By June 30, 2024 the reserve will be depleted.
Aaron Hakenen – Trinidad
The audio tonight is challenging. How many opportunities did the City have to increase the rates since 2017.
Councilmember Breckenridge echoed this question. The report recommends $1.4 million in reserve. At one point the City was very close to the targeted reserve, correct? City Clerk Adams explained that a 2.5% CPI increase was added from 2013-2017, but ended at that point. The prior City Manager attempted a rate increase in 2018, but the Council required it to go out to bid after GHD submitted an estimate for $14,000. The City Manager was unable to accomplish this before his resignation in 2019. Before the new City Manager was able to complete the task, the prior in-house T-3 Operator resigned, then Covid hit in 2020 and made it nearly impossible to predict the budget and financial profile of the system. At this point the water fund cannot afford to wait any longer.
Jacque Hostler – Trinidad Rancheria Executive Director
I’m curious about the explosive cost – expenses – of operating the treatment plant. Please refresh us why it costs over $600k per year to run the Plant. Was there a recruitment process conducted before hiring such an expensive firm to run the system?... or over the last year or so after? Ryan explained that the sharp increase in cost was related to the in-house T-3 Operator resigning, requiring the hiring of the contract firm Coleman Engineering to run the system. The City’s reserve fund was very close to the model standard before operating costs spiked.
City Manager Naffah explained that we tried recruiting but no successful candidates were found. Subsequently, Coleman Engineering tried recruiting, but was unsuccessful as well. Other engineering firms were contacted, but their costs were higher. Water Talent was also contacted, but their operator was too expensive as well.
Ryan explained reserve funding targets. O&M target recommendation is 3 times the expenses during the billing cycle ($119,536). Emergency Reserve is the cost to replace the most critical equipment, such as a well pump ($10,000). Debt reserves (none collected due to no loans). Capital Reserves should be a minimum of an 05-28-2024 City Council Meeting II Minutes Page 3
average annual rehab and replacement budget, based on $12.9 million asset value, so $1.29 million (but not less than $152k.
Rate Options Presented:
1. Base Rate by location, Uniform usage charge, No gift/loan from General Fund, highest rates.
2. Base Rate by location, Uniform usage charge, gift/loan from General Fund, more affordable.
3. Base Rate by meter size, Uniform usage charge, gift/loan from General Fund, Affordable and recommended by RCAC.
RCAC believe 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. 1) Variable Base Rate (location), 2) AWWA Meter equivalency, 3) Variable Usage Rate (location), and 4) Uniform Usage Rate.
City Manager Naffah explained his rational, using interesting math and tax calculations, justifying his preference for keeping the outside city rate higher.
Aaron Hakenen – Trinidad
I’m not following how Naffah’s calculations account for sales tax revenue generated by residents spending inside city limits? Naffah dove into consumer spending habits and how/where they spend.
Tuttle: We need input from businesses as a significant increase will affect their costs.
Paula Levine – Trinidad area resident/Water Service Customer Is RCAC recommending a rate differential in/out city? Ryan explained that the base rate is expected to cover fixed costs, and making water available at the house.
Ryan explained that the AWWA meter equivalency ratio option that takes into account the capacity calculations relative to cost. This industry standard would expect a 4” meter would be 25 times the cost of a ¾” meter, but that’s not what rate option 3 describes. Staff expressed the increase would be too extreme, so it was not preferred. It is also recommended by RCAC to no longer have different usage rates between inside and outside city limits based on 2015 case law.
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
05-28-2024 City Council Meeting II Minutes Page 4
• 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%
• 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 #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
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%
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%
• 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 #3
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 #3
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%
05-28-2024 City Council Meeting II Minutes Page 5
AFFORDABILITY
Ryan explained that affordability is a measurement based on the Mean Household Income. If your system is above
1.5% it’s a medium risk. Above 2.5% is high risk. Once the system reached a specific number of points accumulated relative to affordability, the system is considered high risk and will be approached for consolidation.
Naffah explained that the intent was the increases to be gradual over the next 5-years, with Council expected to reevaluate rates prior to the fifth year.
Adams noted the high-risk affordability rates include the General Fund gift (and loan) but still do not rebuild the capital reserve fund.
Ryan presented the budget for each rate option.
Rate Option 1 has a net loss to cash ($468k) but a net gain to capital reserve of approximately $243k. No gift/loan from General Fund.
Kelly: How confident are we that the contracted services rate will go down to $62k next fiscal year? How can we lose cash flow, but gain in reserves? Rate Option 1 & 3, Inside vs. outside rates are not the trend, and I can’t come up with a good argument for doing it. Rate Option 3 is a big increase for the businesses and Rancheria.
Naffah noted confidence that it will be higher, but over time, however, he expects to budget up to $5k for Coleman Engineering services each month. Also, regarding inside/outside, I showed justification that mostly taxes that should benefit city residents are now being used to support the water fund. Further, equalizing rates removes the attractiveness of annexation (opinion).
Ryan explained that included in the budget is funding capital reserves. It includes an O&M reserve to build up to the recommendation in 10 years. The net loss or gain is how much you’re underfunding the reserves, but covering your annual O&M.
Rate Option 2 stays under the 2.5% affordability inside city limits, but outside city limits will reach that in 2029.
Rates stay relatively low due to inside/outside differential (with outside paying more of the increase). Includes gift/loan from General Fund.
Tuttle: I’d love to see a tiered system to encourage conservation, or a rebate/credit system to reward conservation.
Ryan noted that the State Water Board would agree with you, but case law argues that tiered rates are not justifiable, yet. Currently, however, it’s not recommended. Proposition 218 requires significant, financial justification to determine rate differentials or tiered systems. Annexation desirability is not justifiable.
Public comment included:
Bryce Kenny – Trinidad
I’ve been listening with great interest to everything said tonight. I researched Prop 218 for several hours. The more I learn, the more I believe that our onsultant is guiding you appropriately on the tiered rate structure concept. Tiered rates are problematic. The City bears the burden of justification, in great detail. The City is the only agency that has to take $550k of general funds and forego the benefits of those funds. There’s no easy way out. We need to get our act together and find a T-3 Operator to get out of this jam. When I first heard the contractor’s $30k/month figure, I couldn’t believe it, and I protested. We need to find a way out of it. The system has to pay for itself. There’s going to be a lot of pain involved, but I think our consultant should be listened to very carefully.
Rate Option 3 ends up with a net gain loss in reserve, but a positive cash balance. With meter size differential, larger customers bear the burden of the increase. Affordability remains below 2.5% MHI during the rate period. $300k gift included. Reserve shortfall, but cash positive ($240k).
Trinidad will fall on the higher end of water cost in the region, next to Westhaven with any of the proposed rates.
Paula Levine – Trinidad Area Resident/Water Customer
Outside city residents have always paid more. Equal rates bring more revenue to the system. It is more equitable to equalize the rates. We have been paying more for 50 years. Water is a basic need. 05-28-2024 City Council Meeting II Minutes Page 6
Jacque Hostler – Trinidad Rancheria Executive Director
Rate 3 would be a severe hardship to the Casino. The Rancheria through Indian Health Services (IHS) grant funding has contributed much of the water infrastructure. We can talk more about this at the next G2G meeting. The Rancheria is still moving forward with the Humboldt Bay Municipal Water connection request.
Ryan explained the AWWA meter size option criteria/justification. Larger mains = higher flow, higher cost. Arcata and Eureka water costs for 4” meter sizes are significantly more than the proposed rate for 4” meter with Rate 3.
City Grant Director Becky Price-Hall noted that the costs for contracted services presented in the draft rate study budget is very low for 2025. What happens if there is no change that year, which is how it’s looking so far. The track record established is not good. We continue to budget low and spend much more since the operating status is not changing.
Ryan explained that if more is spent, the net cash flow would decrease. Every year you should be monitoring rates and revenue and if necessary, conduct a new rate study.
Dwight Miller – Trinidad
Inequity in fees with Option 3 needs to be tweeked. We want to preserve affordability for businesses and be good neighbors with the Rancheria. Combination of 2 and 3 should be discussed. Finding a T-3 seems like a very significant challenge. We need to look at ways of being less vulnerable when maintaining our small system. This budget assumes good, consistent staffing. Our local communities pay less. Will they continue to pay less. Will we have lower rates if we get water from HBMWD? Council has made a decision to maintain our own system, but can we really afford it with all the vulnerabilities? Also concerned with loans and gifts of General Funds. Will we be able to pay it back?
Naffah noted that the $250k loan would be determined by the Council with no interest, and whether or not to pay it back.
Steve Madrone – County Supervisor/Trinidad Area Resident Arcata/Eureka are on HBMWD. What is not projected is the water loss from leaky pipes. You need to fix the leaks and replace your tanks. Wisest thing the Council did was to get the current grant to do both.
Council comments included:
Tuttle: How will the Rancheria’s exit from the City’s system moving on to HBMWD, affect the City’s system and rates? Ryan noted that when (or before) that occurs the City will have to do another rate study.
Kelly: The idea of points accruing when cost is too high make us a target for consolidation to make water more affordable for customers. It’s unfortunate that high inflation without rate increases have to occur at the same time.
Unhappy that the reserve has been burned for high cost of consultant services. People are not happy with us. We have a fiscal responsibility to deal with this. Good thing we had a reserve, but we need to get this under control.
Would like to see a combination of 2 and 3.
Naffah suggested 2 and 3 seem reasonable, with 2 being most stable and equitable.
Ryan explained the next steps being to finalize the rate study by June 11 and ask the Council to select a rate option.
The Prop 218 process would begin following adoption, leading to implementation of the rates at the first rate cycle following the 45 day comment window.
Kelly: We have three models in front of us. If we want something different, we need to be clear because new model design will delay the process. I asked in/out paying the same, no meter equivalency ratio. The answer was no. Am I missing something?
Ryan noted that RCAC’s rate model will have a different meter equivalency ratio built in. If we change that, it will take time to calculate a third model. RCAC typically recommends 70% base rate and 30% usage for stability.
Trinidad’s models figure 65% to 35% ratio. Too much paid for usage threatens fixed costs such as equipment and personnel costs. Usage covers variable costs associated with treatment, distribution, and power, etc.
Mayor Kelly noted that the Council will be asked to vote on an option at the June 11 meeting. 05-28-2024 City Council Meeting II Minutes Page 7
3. Continued Discussion/Presentation regarding FY2024-2025 2025 Budget Preparation City Clerk Adams provided a budget overview in advance of the upcoming June 11 final draft. The presentation consisted of the following information:
• Budget Structure
• Revenue Sources
o General Fund
o Supplemental Revenues
• General Fund Reserve (Total fund balance $2.27 million) • General Fund Expenses
o Admin
o Public Works
o Police
o Fire
• 2024-2025 Budget Goals and Highlights for the General Fund, Public Safety, and Public Works o Staff Development and personnel structure improvement o Continued website development
o Refine Public Works staff structure and integrate with Water Department o Continued support of library, Museum, Chamber, Land Trust o Maintain critical services
o Continued progress on General Plan
o HCSO Contract / Animal Control Renewal
o Pacific Coast Security Services
o Staffing split with Water Department and Integration
o Maintain Trails and Public Buildings
o Improve Tennis Court surface
o Provide support during 2024 construction
• General Fund Reserve balance growth since 2019
• Staffing Plan
• Water Fund
o Budget Misses
o Targeted Goals and 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.
o Reserve Fund depleted by FYE June 30, 2024.
• State-Level Budget Indicators
• Grants in progress
• Next Steps – Prepare final draft of all funds/revenues with summary for adoption June 11, 2024.
Council comments included:
Kelly: It’s a great strategy to have a T-2 bench. We need to have a recruitment strategy in place to find a T-3 Operator. I don’t believe we have done enough to fill that position, and I will continue to stand behind this opinion.
Naffah explained that as long as we can keep Coleman Engineering at $10k or less per month we should be ok. 05-28-2024 City Council Meeting II Minutes Page 8
Public comment included:
Steve Madrone – County Supervisor/Trinidad Area Resident Balancing budgets require decreasing expenditures. T-3 Operator makes you stuck. Westhaven CSD only requires T-2 because they’re only pulling water out of deeper springs. If you could get to a place where you only need T-2, you’d save a ton of money. I’ve been studying the Franciscan springs in the upper Luffenholtz Creek watershed for 25 years. Danny Hagens did an analysis of the amount of water stored in the Luffenholtz terrace in 2019, estimating more than 25% of what’s stored in Ruth Lake reservoir. It’s in the ground, not influenced by evaporation, and there are at least a dozen springs in the area. Find a way to get grants for spring analysis, once and for all. The power generated from gravity flow will help run the plant for free by producing energy all winter long. This is based on my thesis work. I’m willing to stake my professional reputation on the fact that this is feasible. Money is available through the State Water Board. $50-75k will be enough to prove feasibility.
Paula Levine – Trinidad Area Resident
If this is such a great idea, why didn’t we pursue it 3-5 years ago? Presentation item only. Staff will return with a final draft budget on June 11 for discussion.
FUTURE AGENDA ITEMS
- Community Survey results.
- Ongoing Trails Update.
- Humboldt Bay Municipal Water District Connection Consideration - Final Budget
ADJOURNMENT: 9:55pm
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
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
07-09-2024 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, JULY 09, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, and Breckenridge. Ladwig arrived at 6:32pm. West was absent. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Project Manager Jennifer Hakenen, Administrative Assistant Anton Souza, and City Engineers Josh Wolf, Brett Vivyan and Kristen Orth-Gordinier from GHD. Approximately (4) participants were present by video-conference, and (3) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION
1. Conference with Legal Counsel – Existing Litigation (Calif. Gov. Code Section 54956.9(d)(1)) (1 Case: City of Trinidad vs.
Tsurai Ancestral Society, et. al, Humb. Co. Sup. Court Case No. 180684)
2. Personnel Exception 54957 - City Manager Performance Evaluation IV. RECONVENE TO OPEN SESSION – No reportable action taken in closed session.
V. APPROVAL OF THE AGENDA
Motion (Tuttle/Kelly) to approve the agenda as submitted. Passed 3-0.
VI. APPROVAL OF MINUTES – 05-14-2024 cc, 05-28-2024 cc2, 06-11-2024 cc Motion (Breckenridge/Tuttle) to approve 05-14-2024 as submitted. Passed 3-0.
Minutes from 05-28-2024 cc2 and 06-11-2024 cc were not prepared in time. Will be reviewed at the next meeting.
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
Breckenridge: Nothing to report.
Kelly: Attended G2G meeting with Rancheria.
Tuttle: Nothing to report.
VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet, including Water Tank and Pipeline Project, Chamber update, new T2 Operator Carl Anderson hired, Coleman Engineering invoice totals (May $14k, June $11k), Taxpayer Protection Ballot Measure removed from election, ATT carrier of last resort was not approved by CPUC, Supreme Court ruled in favor of cities enforcing no camping on city property.
Breckenridge asked staff to confirm if the Sales Tax Relief document was published to the website. City Clerk Adams confirmed.
HCSO Lt. McCall provided a brief summary of the June statistics, provided in the meeting packet. Nothing unusual on July 04 weekend.
IX. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Patti Fleschner – Trinidad Civic Club.
Thanked the City for sending Tourist Occupancy contribution to Museum, Library, Chamber, and Land Trust.
X. CONSENT AGENDA
1. Staff Activity Report – June 2024
2. Financial Statements – May 2024
3. Law Enforcement Report – June 2024.
4. Van Wycke & Axel Lindgren Memorial Trail Update
Motion (Kelly/Breckenridge) to approve the consent agenda as submitted. Passed 3-0. 07-09-2024 City Council Meeting Minutes Page 2
XI. DISCUSSION/ACTION AGENDA ITEMS
1. Presentation of the Draft Trinidad Community Coastal Resilience Action Plan and Project Concept Designs.
On June 11th, the City Council was given an update that the Trinidad Community Coastal Resilience Planning Project (Project) was in its final stage of development. The Project Team is now seeking final City Council and public comments, as it has reached its final stage. The full presentation is available on the City website.
City Engineer Brett Vivyan and Kristen Orth-Gordinier from GHD explained with a detailed presentation that the project was funded by the Ocean Protection Council Prop 68 Coastal Resilience Grant Program, between 2022- 2024 the City, in collaboration with planning partners, stakeholders and the public, engaged in coastal hazards and coastal resilience planning. The Project Team held three public meetings and worked closely with tribal planning partners.
The City’s coastal resilience planning process resulted in the development of the Trinidad Community Coastal Resilience Plan (Plan). The Plan includes an updated Vulnerability Assessment for existing and future coastal processes and conditions to identify hazards and their potential impacts to resources. The Plan then identifies adaptation strategies that provide a roadmap to improve resilience for vulnerable areas and resources. The resilience strategies presented in this Plan is structured around an Adaptive Pathways Planning approach that embeds adaptation, flexibility, and robustness into long-term strategies and plans to make informed choices to assess risk, minimize losses, and maintain resources and assets valued by the community. While noting that obtaining public, regulatory, and other stakeholder support to initiate these Adaptive Pathways is critical to maintaining and enhancing community resilience.
In the Plan’s final stages, the Project Team developed Project Concept Designs for the adaptation strategies.
Project Concept Designs are focused on identifying opportunity areas that create space and stability, while maintaining the character of the area. Additional recommendations for future studies and projects are identified.
A Community Engagement Plan and Community Engagement & Partnerships Summary Report were also developed under separate covers as a part of this Project. Relevant information is summarized or referenced in this Plan.
Public comments included:
Steve Madrone – County Supervisor, Trinidad Area Resident 50-year Trinidad area resident who appreciates this long-term, big picture thinking. Met with GHD, Rancheria, County, and engaged with many partners during this process. Also met with State Representative Jared Huffman and his staff on Scenic Drive last winter. $850k has been earmarked for rehab projects in the future.
County Public Works Director Tom Mattson made Scenic Drive a top priority, and I helped put it on HCAOG funding list. Scenic was turned over to the County in 1967 when the State built the new highway 101.
Dewatering helps stabilize the road. The coast is vulnerable to coastal erosion, and I have recommended engineering solutions to help stabilize it.
Council comments included:
Kelly: I support the idea of residential, pedestrian enhancements that encourage biking, walking, outdoor dining, etc. I’m concerned about traffic impacts to side streets if sections of Edwards Street get reduced to one-way, and also cultural impacts to areas that may need reinforcement should the bluff begin to fail. Discussions would need to occur between the City and Tribal Governments to ensure resources are protected.
Ladwig: This project takes the current traffic discussions and puts them into a 50-year perspective. This is a grant from the Ocean Protection Council and State Coastal Conservancy to fund adaptation strategies.
Presentation item only. No decision was made. Final Plan will be presented in August for adoption.
2. Presentation/Discussion of Main, Trinity, Ocean, View, and Edwards Streets Traffic Study.
City Engineer Josh Wolf presented the information prepared in a memo from Engineer Frank Penry, dated July 03, 2024, as directed by the City Council in response to traffic safety concerns raised by residents in late 2023/early 2024.
Traffic Study presentation included the overview, purpose, traffic volume results, potential counter-measures, and recommendations. A speed survey was conducted along 5 road segments from Wednesday, March 13 to Tuesday, March 19, 2024, on Main Street east of View, View Avenue north of Parker Creek Drive, Ocean Avenue between Main and West, Trinity Street north of West, and Edwards Street between Hector and Trinity. 07-09-2024 City Council Meeting Minutes Page 3
Speed and volume data was collected and presented in the technical memorandum. One of the most notable findings was that Ocean Avenue carried a significantly higher volume of vehicles traveling northbound at a higher rate of speed. Trinity Street is being bypassed by drivers heading back from the Harbor or returning from Trinity, favoring Ocean Avenue as a residential cut-through which is a cause for concern. Vehicle traffic on Main, Trinity, and Edwards Street is of no major concern. They function as major collectors and are heavily used. View & Ocean were looked at closely since they are residential roads. View showed reasonable volume. Ocean carried higher volumes northbound.
Some potential measures, as explained in detail in the memo included in the meeting packet, are as follows:
• Install wayfinding signage in strategic locations to guide travelers in certain directions (restaurants, shopping, downtown, US101, Harbor/Beach etc. (est. $1,000-1,500K) • Install residential traffic only sign on Edwards and Ocean Ave. • Install transverse pavement markings (est. $22k) or speed humps on Ocean & View (est. $30k) • Install edgeline on View.
• Replace faded non-standard speed limit signs on Ocean and View. • Eliminate through traffic on Edwards Street east of Trinity, by using strategic striping, markings, etc., allowing only neighborhood traffic.
Council comments included:
Breckenridge: Has there been any consideration to installing signage discouraging large vehicles or RV’s from traveling on Ocean or View?
Kelly: Is there a speed problem, or a volume problem? Josh Wolf explained that the 85% speed is low 20mph, and 15mph is not common. No serious pattern of overall high speed was noticed, but there were a few outliers traveling at higher speeds. Higher volume of traffic contributes to higher speeds.
Tuttle: Any thoughts to minimize school traffic through Ocean? Ladwig: Communicate with the School and ask to share recommendations with parents. We can try some of the recommended countermeasures and do another study in a year or two, to measure results.
Public comments included:
Michelle McHenry - Trinidad
I walk through town with my grandson everyday. The City removed an encroachment in front of my house on Ocean Avenue when I purchased it. The encroachment slowed traffic down. When it was removed, traffic speeds increased. Speed humps work. Edwards Street needs a sidewalk to protect pedestrians.
Steve Madrone – County Supervisor, Trinidad Area resident I helped the residents of 6th Avenue get the speed humps installed with help from Mercer-Fraser and Granite Construction. The community loves them.
Patti Fleschner – Trinidad
Radar feedback signs are incredibly bright and flash. We don’t need more of them on Main and Trinity Streets.
Council comments included:
Kelly: There have been several requests for speed humps, and they may be effective in slowing thru traffic down. I volunteer to get homeowner acceptance (signatures, etc.) on Ocean and View to properly notify everyone if speed humps are pursued.
Breckenridge: I’m in support of wayfinding signs and speed humps on Ocean and View.
Tuttle: I support speed humps, but no radar feedback signs.
Ladwig: No radar feedback signs. I support striping, replacing old signage, wayfinding signage, and asphalt speed humps, and to invest in another study in a few years to measure the results. Wayfinding signs may help during the busy season, and slower traffic is better than high volume traffic.
Josh Wolf noted that wayfinding signage won’t be covered by HSIP project funding, but speed humps may qualify. Will prepare exhibits and outreach material for Council to provide to residents in preparation of speed hump installation. The project will need to be expedited to meet the HSIP funding and construction deadlines. 07-09-2024 City Council Meeting Minutes Page 4
By consensus, Council directed the City Engineer prepare outreach materials for Ocean Avenue and View Street residents impacted by proposed speed humps. Council members will deliver the message to residents if needed. Staff was also directed to develop wayfinding signage and striping solutions as presented and recommended.
3. Discussion/Decision regarding Edwards Street Pedestrian Improvements.
City Manager Naffah explained that the Coastal Commission is asking for safer pedestrian enhancements on Edwards Street due to the Van Wycke trail closure. Staff met with Engineers and Tsurai representatives to develop short and long-term recommendations. HSIP project may be able to fund short-term improvements.
Meeting with Tsurai again this coming Thursday to discuss short-term concepts, utilizing the south-side of Edwards more safely with better striping. Staff is looking for direction, not necessarily a decision, on potential solutions.
City Engineer Josh Wolf presented concerns, proposed improvements, and challenges. The primary short-term improvement includes developing a 7’ pedestrian shoulder on the south side of Edwards by moving the centerline and adding enhanced striping. Long-term solution would be developing a sidewalk on the north side of Edwards. Short-term enhancements will cost approximately $30k. Available funding remaining for HSIP is approximately $95k.
Council questions included:
Ladwig: Should there be a sign at Edwards and Galindo directing pedestrians to use Galindo instead of Edwards Street? Kelly noted pedestrians, not vehicles, are encouraged to use Galindo.
Breckenridge: Will Edwards Street get repaved? City Manager Naffah explained that the portion under construction for the new water line will get repaved.
City Manager Naffah recommended authorizing staff to act after input is received from the Tsurai, in order to work with the HSIP and Council meeting timelines.
Public comment included:
Steve Madrone – County Supervisor, Trinidad area resident Move the Van Wycke Trail upslope 20’, compensate the landowners, and open the trail. This is the simplest engineering solution.
City Manager Naffah and Mayor Kelly noted the landowners decided to not pursue moving the trail after discussions with the Tsurai concerning impacts to cultural resources. The City is exhausting all possible ideas.
Tim Needham – Trinidad
You have eminent domain powers. You can do it as a City. There’s always questions about cultural significance, but there is no proof of it. You have stumbling blocks with things that don’t exist. Trails are important to the City. Tsurai Management Team does not hold public meetings. Frustrated with Management Team meetings and how they control decisions made by the City.
Mayor Kelly interrupted the comments and guided it back on track with concern for violating the Brown Act.
Focus on Edwards Street Improvements, as agendized.
Michelle McHenry – Trinidad
I support the long-term sidewalk solution for the north side of Edwards.
Motion (Ladwig/Tuttle) to direct staff to proceed with HSIP Edwards Street Improvements as recommended, with possible variations as needed following upcoming consultations with the Tsurai Management Team.
Passed 4-0.
4. Continued Discussion/Decision regarding Draft Water Rate Analysis.
City Manager Naffah introduced Samantha Ryan from RCAC to lead the discussion. Ryan explained that the initial rate study report was presented on May 28. Three rate options were presented. Two different flat rate options were produced, based on contracted service costs, but staff had to confirm salary information included in 07-09-2024 City Council Meeting Minutes Page 5
the budget which formed the basis of the rate proposal. City Staff updated the true salary costs in a Coleman Engineering-free scenario, and also updated the payroll allocation from future grant expectations. In-house salaries are predicted with a transitional decline of Coleman Engineering services over a 2-year period.
Council questions included:
Kelly: Does the predicted cost cover 1 FTE Operator? The budgeted salary cost seems extremely high. City Clerk Adams explained that the Water Fund salary expense includes all staff involved in managing and operating the fund. A portion of the City Manager, City Clerk, Grants, Admin, etc. are included in the operational costs, along with the licensed operators to run the system. The budget proposed is a true representation of what the system needs to operate.
Ryan summarized the three rate options proposed; A, B, and C. Affordability is one of the biggest concerns.
Rate Option A and B puts $240k into cash reserves after 5-years. Rate C will achieve only $157k after 5-years.
When the Council selects a final rate option, the Proposition 218 Hearing process will be conducted. If approved, the timeline for that will conclude by the September 12 meeting, with the new rates implemented by October 01.
Kelly: I want to stick with Rate B, try to keep costs down, and do another rate study in a few years. The coldturkey model may have to be pursued (recruit an in-house Chief, develop operators, and dismiss Coleman Engineering). We haven’t tried hard enough to recruit a T-3 Operator in the last 6-9 months.
Breckenridge: Concerned that by being afraid to not raise it enough, we might put ourselves in jeopardy.
Ryan noted RCAC would recommend Rate Option A or C, which begin to rebuild operating and reserve accounts and provide long-term system sustainability. Option B would help cover O & M cost, but would have to be analyzed internally on an annual basis.
Ladwig: Main indicator of A, B,& C sustainability is how well they rebuild reserves. Slow the bleed and rebuild reserves. The Council looks deeply at its budget annually.
Motion (Kelly/Ladwig) to direct staff to move forward with implementing the Prop 218 process using Rate Option B, with a Council commitment to help reduce costs and review rates again in a year or two if necessary. Passed 4-0.
5. Discussion/Decision to Accept the Scope of Work Submitted by RCAA to repair the Trinidad Head Steps and Utilize Public Works Capital Reserve Funds as Needed to Complete the Project.
City Manager Naffah explained that the steps leading up to Trinidad Head from the parking area are in need of repair. RCAA has proposed the cost of repairs to be approximately $11,927. CIRA funds for risk reduction could be utilized to pay for the repair.
No public comment.
Motion (Ladwig/Kelly) to approve the proposal with RCAA and authorize the City Manager to execute the necessary documents on behalf of the Council to initiate the repairs and identify the appropriate funding source.
Passed 4-0.
6. Discussion/Decision regarding August Meeting Schedule.
By consensus, the Council will hold the August meeting as planned due to ongoing issues that may need attention related to the election or staff recruitment.
7. Notice of Election, Arguments For/Against the Sales Tax Extension, City Council Candidate Nomination Period, and Upcoming Deadlines.
City Clerk Adams explained how July and August shape the upcoming election. Candidate nomination period opens July 15 and ends August 14 if no incumbents file. Regarding Arguments For the Sales Tax Measure, Councilmembers may wish to endorse the measure by authoring the argument for, which will be included in the Voter Information Guide.
07-09-2024 City Council Meeting Minutes Page 6
Presentation item only. Mayor Kelly and Councilmember Ladwig volunteered to prepare the Argument For the Sales Tax Measure.
FUTURE AGENDA ITEMS
- Community Survey
- Ongoing Trails Update.
ADJOURNMENT: 9:20pm
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
08-13-2024 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, AUGUST 13, 2024 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, West, Ladwig, Breckenridge. Tuttle was absent. City Staff in attendance: City Manager Eli Naffah, City Clerk Gabriel Adams, Project Manager Jennifer Hakenen, Administrative Assistant Anton Souza, and City Planner Trever Parker. Approximately (9) participants were present by video-conference, and (12) 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 (Ladwig/West) 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: No HCAOG meeting. Trails Committee work meeting schedule is on pause due to summer activities, and the Council’s discussions regarding ALMT closure. Trinidad Bay Art and Music Festival was a success.
Breckenridge: Animal Advisory Committee will meet in September. A letter will go out soon to all residents regarding licensing requirements, and will include a magnet with animal control contact information on it.
Ladwig: HTA received a presentation from County staff regarding a November ballot measure for roads and transportation expenses. RREDC met but discussed nothing relevant to Trinidad.
Kelly: CERT met on July 22. Thanked the radio team for leading the repair of 2 damaged antennas on the Fire house. Team will participate in an OES event on August 22. Fall disaster drill planning underway. Attending LAFCO City Selection meeting tomorrow night. Requesting an alternate Councilmember to participate. Town Hall Improvement Committee met to discuss next steps for repairing windows, paint, maintenance, etc.
VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Naffah highlighted accomplishments summarized in the staff report included in the meeting packet, including HSIP project update (sidewalks, pedestrian improvements, guardrails on Scenic), Water Tank & Pipeline project update (tank delayed to October 01), Water Plant update (creek flow report, intake pump repair, June invoice from Coleman $11,535, and July $8,270). Responded to questions submitted by a resident regarding Coleman Engineering costs and duties, submitted in writing and included in the public comment packet meeting record. Water Rate protest hearing update, with scheduled hearing September 10. School Playground and Track public access meeting scheduled tomorrow with school and insurance officials. Also noted Optimum Value TV package now includes college sports conference channels.
HCSO Lt. McCall provided a brief summary of the July statistics, provided in the meeting packet. Nothing unusual to report.
IX. ITEMS FROM THE FLOOR
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Tom Davies – Trinidad
I requested invoices for water plant operation several months ago and would like that request to be fulfilled.
X. CONSENT AGENDA
1. Staff Activity Report – July 2024
2. Financial Statements – June 2024
3. Law Enforcement Report – July 2024.
4. Conflict of Interest Waiver/Disclosure for Mitchell Law Firm between the City of Trinidad and RCAA for the Trinidad Head Trail Repair Project.
5. Audit Engagement Letter with JJACPA, Inc. for June 30, 2023 Financial Statements. 08-13-2024 City Council Meeting Minutes Page 2
6. Adopt Final Plan – Trinidad Community Coastal Resiliency Grant Project.
Motion (Ladwig/West) to approve the consent agenda as submitted. Passed 4-0.
XI. DISCUSSION/ACTION AGENDA ITEMS
1. Presentation Discussion of the Community Survey Results.
City Manager Naffah explained that the STR Committee requested a survey, which led to a city-wide survey that included questions about STR activity. 67 responses were received, mostly online. 11 were from outside-city residents. The first deadline was extended to encourage more participation.
Project Manager Jennifer Hakenen prepared the survey, gathered the results, and prepared a presentation.
Questions ranged from quality of life, what is enjoyed most about living in Trinidad, sense of safety, appearance, civic engagement, response, and communication, complaints, and Short-Term rental awareness. Results and priorities will be considered in future budget meetings for consideration. Complete results have been published on the City’s website.
Council comments included:
Breckenridge: I like the suggestion about a community message board in front of Town Hall listing all events happening. Should be inexpensive to implement.
Ladwig: Annual pre-budget goal setting exercise fits well with this survey process. If we’re able to act on suggestions, we may receive more responses. I thank everyone who took time to participate.
There was no public comment.
Presentation only. No decision was made.
2. Discussion/Decision to Appoint 2 Council Members for a future Government-to-Government Consultation with the Yurok Tribe and TAS.
City Manager Naffah explained that the Mayor and Mayor Pro-Tem felt it would be helpful to hold a meeting with the Yurok Tribe and TAS to discuss trail updates. This would allow for more detailed discussion and help plans move forward.
Public comment included:
Jacque Hostler – Trinidad Rancheria Executive Director
The outcomes from G2G meetings should be reported out as per your policy. Trails discussions should be reported back during public meetings, and the Rancheria should be included in receiving that communication.
General trail information should not be held in confidence.
Sarah Lindgren – Tsurai Ancestral Society
We were unaware of ongoing G2G meetings with the Rancheria. I thought they were project specific. Are they published with agendas? City Manager Naffah confirmed they are project specific, including only one or two Councilmembers appointed by the Council.
Kelly Lindgren – Tsurai Ancestral Society
Why isn’t there anything being reported from Rancheria G2G meetings? Mayor Kelly did not report on the last meeting. There are no minutes or records of these meetings either.
Mayor Kelly: Admitted lack of awareness of the reporting requirement, and committed to report all future meeting discussions. Detailed cultural assets are confidential, but everything else is public.
Breckenridge: To confirm, G2G meetings are typically project specific? Mayor Kelly confirmed that was the general practice, being project or topic specific.
Councilmember’s Ladwig and West volunteered to participate.
Motion (Kelly/Breckenridge) to appoint Ladwig and West to attend future G2G meetings with the Yurok Tribe and Tsurai Ancestral Society. Passed 4-0.
08-13-2024 City Council Meeting Minutes Page 3
Motion (West/Ladwig) to jump to agenda item 5 next.
3. Discussion/Decision on an appeal of the Planning Commission's denial of Coastal Development Permit 2024-09 for continued temporary closure of the Axel Lindgren Memorial Trail (ALMT) due to unsafe conditions. Trail closure authorization is proposed for one year while the City works with stakeholders to develop and plan additional repair options. Located at the ALMT; APN: 042-091-005.
City Planner Trever Parker explained that at their July 17, 2024 meeting, the Planning Commission considered and unanimously denied a Coastal Development Permit (#2024-09) for the continued temporary closure of the Axel Lindgren Memorial Trail (ALMT). The ALMT has been closed starting in February 2023 due to substantial erosion that had occurred over the winter. Since then, staff have been working on solutions for reopening the trail. Progress has been slow at times for various reasons, and the situation as we understood it has changed somewhat from when the trail was originally closed. Therefore, staff proposed the additional closure to allow more time to develop and implement an effective reopening plan. The existing closure expired on August 3, 2024. This is a complex situation in a sensitive area. It is staff’s opinion that the ALMT should not be reopened in its current state, because there is an almost vertical 10-to-12-foot drop at the bottom of the trail where it intersects with the beach. And the City cannot move forward with a repair without approval from the Tsurai Ancestral Society (TAS) (and others) per the requirements and limitations of General Plan Policy 69 and Zoning Ordinance §17.16.080. Staff continues to work towards and is making progress on an interim repair plan in cooperation with the Tsurai Management Team (TMT).
The Planning Commission denied the continued closure of the ALMT for several reasons. They do not feel that adequate progress has been made to reopen the trail and that reopening the trail has not been adequately prioritized. Under these circumstances, they felt that the closure would not be consistent with all applicable policies and regulations of the Trinidad LCP and Coastal Act. They expressed a desire for the City Council to be more involved and proactive in working towards reopening the trail. The Planning Commission understood that their decision would likely be appealed due to the existing physical limitations on the trail, but they saw this as a path to getting the issue before the City Council. The decision to deny the project was unanimous (5-0).
Per Zoning Ordinance/Trinidad Municipal (TMC) § 17.72.100, Planning Commission actions are appealable to the City Council within 10 days of the decision. Therefore, the appeal period ran through July 31, 2024. The Planning Commission’s decision can be appealed by any interested person that submitted either written or oral comments to the Planning Commission on this issue. However, if an appellant can show good cause as to why comments could not be submitted, they can still file an appeal.
The City Manager and City Planner sent a letter to the City Council on July 30, 2024, requesting that the City Council appeal the Planning Commission’s decision. Mayor Kelly appealed the decision via an email request on July 30, 2024, noting that she had not taken a stance on the project but felt it was important for the City Council to discuss the issue. Although Mayor Kelly did not speak or submit comments at the Planning Commission hearing, she has spoken with staff about trail issues on numerous occasions and is clearly an interested party.
Further, City Councilmembers are generally advised to not speak at Planning Commission hearings unless they have a direct interest in a project as a citizen, because it could interfere with the Planning Commission’s decision-making process and because it could prejudice the Councilmember should an appeal be filed.
Therefore, Mayor Kelly is an interested person who can show good cause for not having submitted comments at the Planning Commission hearing and can initiate this appeal.
Because (1) the closure is truly temporary, even if long-term; (2) the trail is located in a culturally and geologically sensitive area; (3) the trail presents a public safety hazard in its current condition; and (4) material progress toward developing a proposal to repair and reopen the trail is being made; therefore the project can be found to be consistent with applicable policies and regulations, including Trinidad General Plan Policy 64 and Coastal Act § 30221.
Based on the information provided, staff recommends that the City Council uphold the appeal and reverse the Planning Commission’s denial of CDP #2024-09 and approve the continued temporary closure of the ALMT for up to one year under the following condition:
1. Because the approval is for a temporary trail closure, the CDP shall expire after one year of going into effect, unless an extension is granted by the Planning Commission based on the need for more time to obtain funding and/or further explore repair and access alternatives if the Planning Commission finds that substantial progress has been made in the interim time period. 08-13-2024 City Council Meeting Minutes Page 4
If the City Council agrees with staff’s analysis, the motion could be as follows:
Based on application materials and information included in this staff report and the Planning Commission staff report, and based on public testimony and the discussion at the Planning Commission hearing, I find that the project is consistent with the City’s certified LCP and other applicable regulations, and I move to uphold the appeal, adopt the information and findings in this staff report and approve the project as described in this staff report, and as conditioned therein.
City Manager Naffah explained that staff wants to look at this with a long-term and short-term lens. Short-term repairs with City funds, and long-term with possible grant funds. Hopefully the City Engineer can draft repair plans as soon as possible.
Council questions included:
Breckenridge: Will the trail remain closed until the bottom access is re-routed? Parker explained that the heavily vegetated area must be cleared first to allow access, geo-investigations to take place, and solutions to be considered.
City Manager Naffah confirmed that 9-months will be more than sufficient for repairs and trail re-opening.
Public comment included:
Sarah Lindgren – Tsurai Ancestral Society
We obtained a grant for a conceptual, long-term re-design of the trail to increase its longevity, minimize erosion, and make the community proud of again. It’s been in significant disrepair for a long time. We have to work towards the short-term goal of making is usable as well. Site visits with City staff and RCAA representatives took place on the trail in May. RCAA was able to provide a reasonable estimate for work to establish the traditional route again. The only thing missing is the funding. Connecting the toe of the bluff to the beach safely is a longterm goal. Hand tools and rock stacking is not adequate. This is a sensitive area. We’re trying to preserve the historical component and do it thoughtfully. It’s not a lack of a plan that’s holding it up. It’s a lack of funding to implement the long-term goal. Hoping to get the trail up and running in a permanent way for everyone to enjoy.
If we get funding it can be done a lot quicker, which depends on how the City approaches funding the project.
City Manager Naffah explained that the cost of vegetation removal from RCAA is $4,600 which the City can take care of. Getting people safely to the beach with some type of step system is the objective. Once we find out what that entails, we can search for funding.
Mayor Kelly noted that there is a plan, and that work is being done behind the scenes to move the project forward. Councilmember West thanked the Tsurai for progress towards the repair.
Public comment included:
Jacque Hostler – Trinidad Rancheria Executive Director
At what point will public input be taken on the environmental process involved in the improvements? City Planner Parker responded, stating it will be on the Planning Commission agenda next week, and the City will be reaching out (notifying) to the Rancheria directly.
Tom Davies – Trinidad
I like the idea of the trail being rerouted to the traditional route. I support that, but it’s ironic that it’s been past practice to close trails without a CDP, now the CDP is being weaponized to keep the trail closed. When I hear that work has been going on behind the scenes, it makes sense why there’s concern and animosity between the City government and the citizenry. The Wagner Street trail is being pushed off alignment by vegetation management of the property owner. An email from Cheryl in the packet to all Councilmembers is concerning.
Hopefully there was no response or discussions behind the scenes. That adds to the concern for transparency.
Mayor Kelly confirmed there was no response to the email sent. The Tsurai Management Team has been meeting at a staff level – not with Council. I have asked that these meetings be made public, but they have not been.
City Manager Naffah explained that funding is being researched for long-term trail improvement plans. 08-13-2024 City Council Meeting Minutes Page 5
Ladwig: I can confirm I have not responded to any group emails, and I support your interest to preserve transparency.
Sarah Lindgren – Tsurai Ancestral Society
I appreciate the support and comments to return the trail to the traditional path. Hope it will be in use for the foreseeable future in that new route. The City Manager has always reported out on TMT meetings, and we encourage, just like any other committee, for reports to be included in manager staff reports. The Tsurai Ancestral Society received a grant for conceptual trail design. It was only recently shared with City staff. It was first shared with the Yurok Tribe to pursue funding. No progress was made, so we brought it to the City. It’s now being made public to receive input. We wanted to make sure it was doable and see come to fruition. We are hopeful we can make this happen through the normal public channels, making this a community project. It will affect the City and benefit everyone that enjoys that trail. Unfortunately, the Management Team meetings aren’t open to the public. There is currently a lawsuit that limits what can be discussed.
Mayor Kelly: The community will be excited to see the preliminary plans developed.
Tristan Cole – Trinidad resident, Planning Commissioner The report from Trever and Sarah is very encouraging, but I’m a continued skeptic. We have received a lot of encouraging reports from the City and TMT, but nothing has come to fruition. There has been a lot of talk. I’m weary of all this positive news. Granting additional closure gives staff and the TMT a sigh of relief. I’d like to see the Council create accountability. There have been too many hollow promises. With regard to the forthcoming report, my impression is that it’s a study of long-term solutions. We want to see some short-term solutions. We need a temporary re-opening solution. The long-term solution could be open-ended.
Sarah Lindgren -Tsurai Ancestral Society
Remind Council that there is an estimate from RCAA to reopen the trail. The only thing missing is funding. The TMT has had the estimate since May 20, for under $5,000. Work can be done now if the City can fund it. Steve Allen (GHD) has been discussing simple solutions with TAS for the bluff toe. There have been site visits and an estimate requested. The only thing left is to write the check.
Mayor Kelly: The City will fund the RCAA estimate to clear the area of vegetation for investigation ($4,600), but that work will not reopen the trail, correct? City Manager Naffah explained that a related item was on the Consent Agenda regarding Conflict of Interest Waiver for the City Attorney. City Planner Trever Parker explained that after looking at the toe of the bluff, it may require more work after the vegetation is removed. I spent time reviewing College Cove improvements. We should have someone consult with the City with State Parks and TAS for their non-invasive, potential short-term plan. I’d like to see some milestones in place with tonight’s decision to ensure accountability.
Richard Johnson – Trinidad Planning Commissioner
A letter was written by the Commission Chair summarizing their work so far, included in the comment record.
This is something very complicated, but very simple. From a simplicity standpoint, all we’re asking for is a trail to access the beach. The Commission felt frustrated with the fact that the Council, not Commission, has the authority to make this happen. The denial of the permit brought this to the Council level with the intent of getting as much support as possible.
City Planner Parker noted the short-term solution would be the least amount of work needed to get people to the beach safely, and possibly removed during the winter.
Written comments submitted, included in the meeting record were received in support of keeping the ALMT open and denying closure extension from the following residents/community members:
Tom Davies and Kathleen Lake
Anita Thompson
Bryce Kenny
Kim Tays
Richard “Dick” Bruce
Council comments included:
West: I’d like to see monthly progress updates so we know what’s going on, and not getting pushed aside. I want this done as soon as possible.
08-13-2024 City Council Meeting Minutes Page 6
Ladwig: I support the Planning Commission’s request for action, and will follow that lead. The City has been committing Trail Maintenance funding for several years now – approximately $10k per year. I recommend adding funding commitment to the motion when it’s drafted.
Kelly: The Planning Commission’s frustration is directed at the Council, and we need to have accountability and milestones. We talked about funding. Grants and other partnership opportunities with the TAS should also be pursued.
Jacque Hostler – Trinidad Rancheria Executive Director
The Trinidad Rancheria Tribal Council requests G2G consultation with short and long-term solutions. The Rancheria has not been kept informed, and has been requesting non-confidential information to be brought back to the Tribal Council. There’s no reason why communication shouldn’t be flowing freely, eliminating the need for these requests. I appreciate the complexity of the project. We support it, but the lack of communication demands our request for consultation.
Mayor Kelly noted we can do better, and we will do better.
City Manager Naffah recommended “by Memorial Day” as a deadline.
Motion (Ladwig/West) to uphold the appeal, reverse the Planning Commission's decision, and approve CDP #2024-09 for the continued closure of the ALMT as recommended by staff and with the following stipulations: (1) City will commit budget discretionary funds to the project (Steve actually said "trail funds", but I'm fine with whatever wording you think is best here); (2) dedicate City staff time to search and apply for eligible grants; (3) staff will provide monthly reports and progress assessments to the Council; and (4) set Memorial weekend 2025 as the target for reopening. Passed 4-0.
4. First Reading of Ordinance 2024-02 and Adoption of Resolution 2024-14; Zoning and General Plan Amendment request to change the zoning and general plan designations of the property from PR – Public and Religious to SR – Suburban Residential. Narelle 2021-04; Located at 12 Berry Road; APN: 515-331-016.
City Planner Trever Parker explained that the project is located at 12 Berry Road, APN: 515-331-016. The property is currently developed with a church and an attached apartment. The church had been abandoned for several years prior to purchase by the current owners. They would like to convert the church into a residence and maintain the apartment as an ADU. In order to accomplish this, the property owner has requested a zone change from Public & Religious (PR) to Suburban Residential (SR). The Planning Commission recommended approval of the rezone/general plan amendment at a public hearing on July 17, 2024.
Over the past several years, three of the four churches in the City have been sold into private, individual ownership. This indicates a lack of demand for this particular land use. The SR land use designation/zoning is consistent with surrounding properties and the rural residential neighborhood of Berry Road. The amendment is essentially “downzoning,” because the SR zone allows a much narrower range of uses and at a lower density than the PR zone.
One complicating factor for this site is the presence of a wetland just to the east of the existing development.
The wetland has been delineated in accordance with current standards, and a 50-foot setback for future development will be maintained. This project was referred to resource agencies and any concerns have been adequately addressed. Because the City’s zoning ordinance does not contain provisions for wetlands, staff is not recommending that any of the lot be designated/zoned Special Environment (SE).
At this time, the applicants are proposing only minimal new development, including conversion of the church into a residence by way of internal remodeling, and repairs and installation of a new septic system to serve both residences that will be outside of the 50-foot wetland setback. However, this development is not being approved at this time, because it is not consistent with the existing zoning. It will require a separate permit once the amendment is approved by the City and certified by the Coastal Commission.
The project will need to be approved in several steps. The General Plan Land Use Map will be amended by adoption of Resolution 2024-14. The Zoning Map must be amended via an ordinance, and so will require two readings. The City Council may hold the first reading of Ordinance 2024-02 at this meeting. The second reading 08-13-2024 City Council Meeting Minutes Page 7
will occur at the September 10, 2024 meeting. At that time, the Council will also need to adopt a second Resolution (2024-15) authorizing staff to submit an application for an amendment of the City’s Local Coastal Program to the California Coastal Commission.
Staff and the Planning Commission have recommended approval of this project. Based on the analysis in the attached staff report, the proposed rezone/redesignation can be found to be consistent with the City’s Zoning Ordinance, General Plan and the California Coastal Act. If the City Council agrees with staff’s analysis and the Planning Commission recommendation, the project may be approved with adoption of the attached Resolution 2024-15 and Ordinance 2024-02.
There were no public or Council comments.
Motion (Ladwig/West) to Adopt Resolution 2024-14 approving the General Plan Land Use Map Amendment, hold the first reading of Ordinance 2024-02 amending the Zoning Map, and set the second reading for September 10, 2024. Passed 4-0.
5. Discussion/Decision regarding First Amendment to the Franchise Agreement for Solid Waste and Recyclable Materials Collection Services in the City of Trinidad.
City Manager Naffah explained that a Franchise Agreement dated April 9, 2014, between the City of Trinidad (City) and Humboldt Sanitation Company (Contractor) spells out the terms for Solid Waste and Recyclable Materials Collection Services. The Agreement has functioned well between the parties for the past 10 years.
Last month representatives of the City and Contractor met at the Contractors facilities in McKinleyville. There was consensus to continue the Agreement which provides for extensions of five years. Included in the meeting packet is the First Amendment extending the Franchise Agreement until August 1, 2029.
Representatives from Humboldt Sanitation were present.
There was no public or Council comments.
Motion (West/Ladwig) to approve the First Amendment to the Franchise Agreement for Solid Waste and Recyclable Materials Collection Services in the City of Trinidad. Passed 4-0.
6. Discussion/Decision regarding Revised Ballot Wording Previously adopted in Resolution 2024-08; Calling for an Election on a Proposal to Continue the City of Trinidad’s .75% Sales Tax Transaction and Use Tax Increase for 4-Years (Measure L).
City Clerk Adams explained that Resolution 2024-08 was adopted by the Council on May 14 as a lead-up item required to ensure Sales Tax Continuation Measure L would qualify to be on the November General Election ballot. While drafting the Impartial Analysis, the City Attorney took a closer look at the ballot measure language and felt it would be more effectively communicated with a slight revision, removing the “Shall a 3/4 cent…” terminology and replacing it with “shall a three-quarters of one percent (.75%)…” By adopting the revised resolution proposed, the Council will be properly archiving the change for future reference.
The following Sales Tax measure Ballot Question shall be submitted before the voters at the General Election to be held on November 05, 2024:
Shall a three-quarters of one percent (.75%) transaction and use tax be adopted and continued in the City of Trinidad for four additional years, starting on April 01, 2025 and terminating on March 31, 2029? YES/NO
There were no public comments.
Council comments included:
Ladwig: Make sure it says .75%, not .075%.
Motion (Ladwig/Kelly) to Adopt Revised Resolution 2024-08; Calling for an Election on a Proposal to Continue the City of Trinidad’s .75% Sales Tax Transaction and Use Tax Increase for 4-Years (Measure L). Passed 4-0. 08-13-2024 City Council Meeting Minutes Page 8
7. Discussion/Decision regarding First Reading of Ordinance 2024-03; Extending the .75% Transactions and Use Tax for General Purposes to Continue to be Administered by the California Department of Tax and Fee Administration.
City Clerk Adams explained that Ordinance 2024-03 is required by the California Department of Tax and Fee Administration (CDTFA) to be in place prior to the election November 05, 2024 General Election, whereby the City of Trinidad voters will be asked whether to extend the .75% Sales Tax another 4-years.
This Ordinance will authorize the CDTFA to postpone efforts to terminate the existing tax rate prior to the sunset date of March 31, 2025, and adopt a new termination date IF the sales tax extension passes successfully in November.
If the measure does not pass, this ordinance will become null and void.
A legal notice was summarized, and published locally and in the Mad River Union prior to this hearing as required. A second notice will be published with the outcome of this hearing, and a second reading of the Ordinance will occur in September.
Adoption of the ordinance will become effective only with a majority of Trinidad voter support of Measure L passes in November.
There were no public or Council comments.
Motion (West/Kelly) to approve the First Reading of Ordinance 2024-03; Extending the .75% Transactions and Use Tax for General Purposes to Continue to be Administered by the California Department of Tax and Fee Administration. Passed 4-0.
8. Review/Discussion/Decision of Sales Tax Impartial Analysis from the City Attorney, and the Argument in Favor of Measure L Prepared for Council Consideration and/or Endorsement.
City Clerk Adams explained that two topics are bundled into this discussion. First, the City Attorney’s Impartial Analysis, and second, the proposed Argument in Favor of Measure L.
Sales Tax Impartial Analysis: No Council action is required for this item. The purpose of bringing it to the agenda is to raise awareness of it. It is a tool used to educate voters from an impartial source. The analysis will be forwarded to County Elections in preparation of the Voter Information Guide it will be published in, adjacent to the Arguments For/Against, and Rebuttals.
Argument In Favor of Measure L: Drafted by Mayor Cheryl Kelly, the Argument In Favor is proposed for discussion to allow other Council members the opportunity to endorse it. The document could not be signed by the full Council without a public discussion. Supporters will be listed by name.
There were no public or Council comments.
Motion (Ladwig/Kelly) to endorse the Argument in Favor drafted and proposed by Mayor Kelly. Passed 4-0.
9. Calendar/Deadline Update for Sales Tax and City Council Election; Arguments For/Against the Sales Tax Extension & Candidate Nomination Period.
City Clerk Adams explained that the City’s November 05, 2024 Election ballot will include the Continuation of the Sales Tax Increase Measure, and Two (2) Councilmember seats.
The current Councilmember terms are:
Ladwig Term Expires December 2024
West Term Expires December 2024
Kelly Term Expires December 2026
Tuttle Term Expires December 2026
Breckenridge Term Expires December 2026
08-13-2024 City Council Meeting Minutes Page 9
As of Friday, August 09, no nomination papers have been taken by prospective candidates, nor has either incumbent (Ladwig & West) filed papers for continuation. Therefore, the filing deadline will be extended to August
14. The list of remaining Election deadlines is as follows:
• August 13 – Deadline to file Impartial Analysis
• August 14 – Extended Deadline for Candidate Nomination Packets IF NO INCUMBENTS file for the positions by August 09.
• August 16 – Deadline to file Arguments For/Against the Sales Tax Increase • August 28 – Deadline to file REBUTTALS to Arguments For/Occupancy Tax Increase. • September/October – Clerk’s office coordinates ballot preparation with County Elections. • November 05 – Election Day
Staff Recommendation: Review and file. Clerk will notify the Council and public of each deadline as it approaches.
Monthly election progress reports will be included in the packets each month.
Attachments: None.
FUTURE AGENDA ITEMS
- Government-to-Government Meeting Policy with City Attorney Russ Gans present to advise on procedures. - Ongoing Trails Update.
- General Plan Update.
ADJOURNMENT: 8:50pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
CONSENT AGENDA ITEM 1
SUPPORTING DOCUMENTATION ATTACHED
1. Staff Activity Report – August 2024
City Manager’s Report September 24th, 2024 Meeting
HSIP Project:
The HSIP Project is underway: two crosswalks are being added on Edwards Street, one at Hector and one at Gallindo. Expanded pedestrian and bicyclist improvements will be done on the South side of Edwards. RAO Construction is the contractor.
Water Tank and Pipeline Project:
Connections to the new water line on Edwards Street will take place on September 25th, and then the temporary water line on Van Wycke Street will be removed. Repaving of the construction areas on Edwards and the upper portion of Van Wycke will take place midOctober. Mercer-Fraser Company is the contractor.
Water Plant:
The discharge measurement from the Luffenholtz Creek streamflow on August 28th was 3.69 cfs which is good for this time of year. Another measurement will take place on Monday and will be reported at the City Council meeting.
Three water plant employees are scheduled to take water exams in the next 2 months, one for T-3, one for T-2, and one for D-2. The August invoice from Coleman Engineering is $12,708.
School Playground and Track:
Representatives of the City’s and School’s JPA Insurance Pools met with representatives of the City and School on August 14th. All parties agreed that the playgrounds and the track can be open to the public outside of school hours and when events are not taking place on campus.
Access will not be available during summer day camp and if construction is taking place. The representative from the City’s insurance pool visited onsite on September 19th to see the facilities first-hand.
Van Wycke Trail:
The CIRA insurance pool representative visited the Van Wycke Trail after meeting at the school.
Measures necessary to meet requirements for possible reopening of the trail were discussed.
Meetings with the Tsurai Ancestral Society, Yurok Tribe, and Trinidad Rancheria will take place before the trail will be addressed by the City Council. Meanwhile, monthly meetings with the local California Coastal Commission staff and City staff continue to be held.
Axel Lindgren Memorial Trail:
The Tsurai Ancestral Society will present the Axel Lindgren Memorial Trail Conceptual Redesign at the October 8th City Council meeting. Meanwhile, our City Attorney is preparing the contract for RCAA to remove vegetation on the redirected portion of the trail. Consultation with the Trinidad Rancheria will take place before removal, and representatives of the Tsurai Ancestral Society will be present onsite during trail redirection and vegetation removal.
CIRA:
While in Humboldt County, our CIRA (California Intergovernmental Risk Authority) insurance pool representative also addressed potential scenarios that could improve law enforcement services regionally. Mutual aid and possible further law enforcement presence of personnel may become available. Any potential concepts/proposals that may arise will be brought to the City Council for consideration with the public.
CONSENT AGENDA ITEM 2
SUPPORTING DOCUMENTATION ATTACHED
2. Financial Statements – July 2024
CONSENT AGENDA ITEM 3
SUPPORTING DOCUMENTATION ATTACHED
3. Law Enforcement Report – August 2024.
CONSENT AGENDA ITEM 4
SUPPORTING DOCUMENTATION ATTACHED
4. Second Reading of Ordinance 2024-02; Zoning and General Plan Amendment request to change the zoning and general plan designations of the property from PR – Public and Religious to SR – Suburban Residential. Narelle 2021-04; Located at 12 Berry Road; APN:
515-331-016, and Resolution 2024-15; Authorizing Staff to Submit an LCP Amendment to the Coastal Commission for the Rezone.
p. 1
Narelle 2021-04 Zoning / GP Amendment Agenda Item Report 09-10-24 CC Meeting
CONSENT AGENDA ITEM
Date: September 10, 2024
Item: Narelle 2021-04: Zoning and General Plan Map Amendment Background
The project is located at 12 Berry Road, APN: 515-331-016. The property is currently developed with a church and an attached apartment. The church had been abandoned for several years prior to purchase by the current owners. They would like to convert the church into a residence and maintain the apartment as an ADU. In order to accomplish this, the property owner has requested a change in the land use designation and zoning from Public & Religious (PR) to Suburban Residential (SR). The Planning Commission recommended approval of the general plan and zoning map amendments at a public hearing on July 17, 2024. The City Council took the first step to approve the request at the August 13, 2024 meeting via adoption of Resolution 2024-14 amending the land use map and the first reading of Ordinance 2024-02 amending the zoning map. The next step will be for the City Council to complete the second reading of Ordinance 2024-02 and adopt Resolution 2024-15 authorizing staff to submit a Local Coastal Program amendment to the Coastal Commission.
Recommended Action
1. Hold the second reading and adopt Ordinance 2024-02 amending the Zoning Map.
2. Adopt Resolution 2024-15 authorizing submittal of an application for an amendment to the Local Coastal Program to the California Coastal Commission.
Attachments
• Ordinance (2024-02) Amending the Zoning Map (2 pages) • Exhibit B: Zoning Map showing Amendment 2021-04 (1 page) • Resolution 2024-15 (1 page)
City of Trinidad Ordinance #2024-02
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. 2024-02
AN ORDINANCE OF THE CITY OF TRINIDAD, CALIFORNIA, AMENDING THE ZONING MAP OF THE IMPLEMENTATION PORTION OF THE LOCAL COASTAL PROGRAM TO CHANGE APN 515-331-016, 12
BERRY ROAD, FROM PUBLIC & RELIGIOUS TO SUBURBAN RESIDENTIAL WHEREAS, an application to amend the land use and zoning maps for Assessor Parcel Number 515-331-016 (12 Berry Road) was submitted by the owners Nina and Shoogs Narelle on February 10, 2021; and WHEREAS, the application is known as Narelle 2021-04: General Plan / Zoning Amendment. The amendment is to change the land use and zoning designations of Assessor Parcel Number 515-331-016 (12 Berry Road) from Public & Religious to Suburban Residential; and
WHEREAS, the Planning Commission held a duly noticed public hearing on the General Plan / Zoning Map amendments on July 17, 2024 in accordance with State Law and the Municipal Code and recommended approval of the General Plan / Zoning Map Amendments to the City Council; and WHEREAS, the City Council held a duly noticed public hearing on the General Plan / Zoning Map amendments on August 13, 2024; and
WHEREAS, the amendment is statutorily exempt from CEQA per §15265 exempting adoption of coastal plans and programs by local governments; and
WHEREAS, this amendment is consistent with other parts of the City’s Zoning Ordinance and certified Local Coastal Program; and
WHEREAS, the General Plan / Zoning Map amendment was discussed fully with testimony and documentation presented by the public and affected government agencies with all persons given the opportunity to speak for and against the proposed amendment; and
NOW THEREFORE BE IT ORDAINED, the City Council does hereby amend the Zoning Map (Section
17.12.040; Section 3.04 as originally certified). The property to be rezoned is described below and is shown on the attached map labeled as “Exhibit B.”
“Assessor Parcel Number 515-331-016, 12 Berry Road, City of Trinidad, California” BE IT FINALLY ORDAINED, this action is based on the information, findings and conditions as described in the staff report and other supporting information included with the August 13, 2024 City Council packet for this agenda item.
SECTION II: This ordinance shall become effective immediately upon certification by the California Coastal Commission.
PASSED AND ADOPTED by the City Council of the City of Trinidad, State of California, on Tuesday, August 13, 2024, by the following vote: (Second reading approved Tuesday, September 14, 2024).
AYES: Kelly, West, Ladwig, Tuttle, Breckenridge
NAYS: None
ABSENT: None
ABSTAIN: None
Attest:
Gabriel Adams, City Clerk Cheryl Kelly, Mayor
City of Trinidad Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
707-677-0223
RESOLUTION NO. 2024-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TRINIDAD, CALIFORNIA, AUTHORIZING
SUBMITTAL OF A LOCAL COASTAL PROGRAM AMENDMENT TO AMEND THE LAND USE MAP OF
THE TRINIDAD GENERAL PLAN / LAND USE PLAN PORTION OF THE LOCAL COASTAL PROGRAM
AND AMEND THE ZONING MAP OF THE IMPLEMENTATION PLAN PORTION OF THE LOCAL COASTAL PROGRAM TO CHANGE APN 515-331-016, 12 BERRY ROAD, FROM PUBLIC & RELIGIOUS
TO SUBURBAN RESIDENTIAL
WHEREAS, the City of Trinidad City Council has adopted Resolution 2024-14 amending the Land Use Map and Ordinance 2024-02 amending the Zoning Map of the City’s Local Coastal Program to change APN 515- 331-016 from Public and Religious to Suburban Residential; and WHEREAS, this amendment has been reviewed and processed pursuant to the provisions of the Local Coastal Program and City laws; and
WHEREAS, the amendment is Statutorily exempt per §15265 exempting adoption of coastal plans and programs by local governments; and
WHEREAS, after due notice and public hearing, and in accordance with the Local Coastal Program, the Planning Commission recommended approval of the amendments to the Land Use Map and Zoning Map on July 17, 2024, and the Trinidad City Council adopted the general plan amendment by Resolution 2024-14 and adopted the zoning amendment by Ordinance 2024-02 on August 13, 2024 as recommended and conditioned by the Planning Commission; and
WHEREAS, this amendment is intended to be carried out in a manner in conformity with the Coastal Act and the implementing Local Coastal Program; and
WHEREAS, this amendment is consistent with the City’s certified Local Coastal Program; and WHEREAS, this amendment shall take effect immediately upon certification by the California Coastal Commission if approved as submitted. If the California Coastal Commission certifies the amendment subject to conditions that change the nature of the amendment, final approval by the Trinidad City Council shall be required prior to the amendment taking effect; and
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Trinidad as follows:
1. City staff is directed to apply to, and work with, the California Coastal Commission and staff for approval of this Local Coastal Program amendment.
INTRODUCED, PASSED, AND ADOPTED this 24th day of September 2024, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST:
Gabriel Adams Cheryl Kelly
City Clerk Mayor
CONSENT AGENDA ITEM 5
SUPPORTING DOCUMENTATION ATTACHED
5. Second Reading of Ordinance 2024-03; Extending the .75% Transactions and Use Tax for General Purposes to Continue to be Administered by the California Department of Tax and Fee Administration
DISCUSSION AGENDA ITEM
Date: Tuesday, September 24, 2024
Item: Second Reading of Ordinance 2024-03; Extending the .75% Transactions and Use Tax for General Purposes to Continue to be Administered by the California Department of Tax and Fee Administration.
Summary: Ordinance 2024-03 is required by the California Department of Tax and Fee Administration (CDTFA) to be in place prior to the election November 05, 2024 General Election, whereby the City of Trinidad voters will be asked whether to extend the .75% Sales Tax another 4-years.
This Ordinance will authorize the CDTFA to postpone efforts to terminate the existing tax rate prior to the sunset date of March 31, 2025, and adopt a new termination date IF the sales tax extension passes successfully in November.
If the measure does not pass, this ordinance will become null and void.
A legal notice was summarized, and published locally and in the Mad River Union prior to this hearing as required. A second notice will be published with the outcome of this hearing, and a second reading of the Ordinance will occur in September.
Adoption of the ordinance will become effective only with a majority of Trinidad voter support of Measure L passes in November.
Attachments: Ordinance 2024-03.
Legal Notice Published
City of Trinidad Ordinance 2024-03 Page 1 of 1
TRINIDAD CITY HALL CHERYL KELLY, MAYOR
P.O. BOX 390 GABRIEL ADAMS, CITY CLERK
409 Trinity Street
Trinidad, CA 95570
(707) 677-0223
ORDINANCE NO. 2024-03
AN ORDINANCE OF THE CITY OF TRINIDAD EXTENDING THE ¾% TRANSACTIONS AND USE TAX FOR
GENERAL PURPOSES TO CONTINUE TO BE ADMINISTERED BY THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code Sections 7285.9, the City of Trinidad (the "City") has the authority to levy a Transactions and Use Tax for general purposes; WHEREAS, a majority of the voters of the City approved a three-quarter percent (¾% or .75) Transactions and Use Tax at an election held in November 2008, and renewed the measure again in 2012, and 2016, and 2020; WHEREAS, the City's Transactions and Use Tax Ordinance is found in Chapter 3.08 of the City's Municipal Code; WHEREAS, City of Trinidad Ordinance 2020-01, Section 16 sets forth a "Termination Date" which was extended by majority approval of the voters in November 2020 to March 31, 2025, at which time Ordinance 2020-01 will be repealed unless an extension or re-authorization is approved by the voters of the City at an election called for that purpose; and
WHEREAS, an extension or re-authorization of the City's Transactions and Use Tax will be submitted to the voters to extend the "Termination Date" of Ordinance 2020-01 to March 31, 2029.
NOW, THEREFORE, the City Council of the City of Trinidad does hereby ordain as follows:
Section 1. Amendment. The definition of "Termination Date" in Section 16 of the City of Trinidad Ordinance 2020-01 of the City's Municipal Code is hereby amended to read as follows:
15.19.020 Definitions
(c) "Termination date" initially means March 31, 2029, and as of that date this Ordinance is repealed unless an extension or re-authorization of this Article is approved by the voters of the City at an election called for that purpose.
Section 2. Approval by the Voters. This Ordinance shall be submitted to the voters at an election to be held on Tuesday, November 05, 2024. Upon approval by a simple majority of the voters of the City voting on this Ordinance, the Transactions and Use Tax set forth in Ordinance 2020-01 of the City's Municipal Code shall be reauthorized and extended through and including March 31, 2029.
PASSED AND ADOPTED this 13th day of August, by the following vote of the City Council:
Ayes: Kelly, West, Ladwig, Tuttle, Breckenridge
Noes: None
Absent: None
Abstain: None
Attest:
_________________________ _________________________
Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
First Reading: August 13, 2024
Second Reading: September 24, 2024
City of Trinidad
Legal Notice
Adoption of Ordinance 2024-03; Authorizing the California Department of Tax and Fee Administration to Continue the .75% Sales Tax to be Administered if Approved by the Voters at the General Election in November 2024.
The Trinidad City Council will consider the first reading of Ordinance 2024-03 at a regular meeting to be held on Tuesday, August 13, 2024.
Summary of Ordinance 2024-03
Ordinance 2024-03 is required by the California Department of Tax and Fee Administration (CDTFA) to be in place prior to the election November 05, 2024 General Election, whereby the City of Trinidad voters will be asked whether to extend the .75% Sales Tax another 4-years. The Ordinance will authorize the CDTFA to postpone efforts to terminate the existing tax rate prior to the sunset date of March 31, 2025, and adopt a new termination date should the sales tax extension pass successfully in November.
Second Reading of the ordinance is scheduled for Tuesday, September 10, 2024 and will only become effective following the majority of voter support at the November 05, 2024 General Election.
The full text of Ordinance 2024-03 is available for public inspection at the Trinidad Town Hall, City Clerk’s office, 409 Trinity Street, Trinidad, CA, Monday through Friday between 9:00 am and 3:00 pm.
It is also available electronically via www.trinidad.ca.gov. Ordinance 2024-03 will take effect 31 days following adoption.
Gabriel Adams
Trinidad City Clerk
707-677-0223
CONSENT AGENDA ITEM 6
SUPPORTING DOCUMENTATION ATTACHED
6. Trinidad-Westhaven Emergency Water Service Intertie Grant Project Update
CONSENT AGENDA ITEM
Date: September 24, 2024
________________________________________________________________________ Item: Trinidad-Westhaven Emergency Water Service Intertie Grant Project Update Background: On October 7, 2022, the City of Trinidad (Grantee, City) and Westhaven Community Services District (WCSD) (Implementing Local Agency) entered into an Interim Memorandum of Agreement (MOA) for the design, California Environmental Quality Act Compliance, permitting, construction and operation of the Trinidad – Westhaven Emergency Intertie Project (Agreement).
This project, funded by the Multi-benefit Drought Relief Program (MBDRP) from the Department of Water Resources (DWR), consists of an intertie between the City and WCSD, specifically a water line connecting the two water systems. The intertie’s purpose is to allow one water system to provide water to another system during an emergency, provided water is available from the supplying agency.
The original scope of the project consisted of pipes, valves, fire hydrants, a pump station and possibly a back-up generator, however due to budgetary constraints this scope will need to change. The Project is currently in the design phase. A time extension for the project will also be required, due to delays during the design phase.
Additionally, the executed Interim MOA addressed Cost Sharing (item 3). Specifically, it outlined what would happen if the cost of construction exceeded the grant budget. “In the event that costs exceed the budgeted funds for the construction contract provided through the MBDRP Grant, the parties will reduce scope of project while still accomplishing objectives and/or seek additional funding.” If there is still a funding shortfall, the clause specifies how the additional costs would be shared. The version approved by Council specified “If there is still a funding shortfall, the additional funds required to complete construction (construction contract only) shall be apportioned between the City and District according to their respective most recent relative annual water sales. Thus, for example, if the City’s annual water sales revenue were twice that of District, then sharing of cost overruns would be 66.66% City: 33.33% District.” The rational was because the WCSD water system is smaller than the Trinidad water system. Originally, WCSD proposed apportioning construction cost overruns based on respective annual water sales.
When the MOA was approved in October of 2022, the hypothetical situation, provided below, was used to show what the estimated for proportional cost sharing would be based on FY 21-22 water sales. Based on the water sales, the City would pay approximately 59%, and WCSD would pay approximately 41% during FY 22-23.
Hypothetical situation
for cost sharing this
year.
FY 21-22 Water
Sales
Total water
sales
Proportional share
of cost overruns
during FY 22-23
City $318,925 / $537,384 = 59.35%
WCSD $218,459 / $537,384 = 40.65%
It should be recognized, that since 2021, when Coleman Engineering was hired as the contract water plant operator, the City’s financial situation has been on the down trend. The Water Fund expenses have been greater than revenue over the past 4 years. Due to this, the cost share agreed upon in the executed Interim MOA needs to be reexamined, and a new cost share proposal to present to WCSD needs to be developed, as soon as possible, as the City is not in a position to pay cost overruns. It should be noted, the Project Team is in the process of reexamining the budget to try to avoid cost overruns and stay within budget.
The Water Fund Annual Net Profit/Loss per year is as follows for background:
2021: - $235,228
2022: - $346,427
2023: - $523,584
2024: - $300,000 *estimated (likely higher based on June 2024 financials)* *The City is also required to set aside funds for Capital Improvement.* While an option agreed upon in the Interim MOA is to seek additional funding, the question of who is responsible to seek out this additional funding needs to be addressed. Seeking additional funding for this project would not be covered by grant funds.
Additionally, as this project is now in the position of having its scope reduced, agency responsibilities overall need to be reexamined and refined, as well. An agreement item that was not originally completed when the Council executed the Interim MOA was the Exhibit C Schedule and Responsibilities. The Exhibit C must be composed before a final MOA is executed between the City and WCSD.
Next Steps:
At a future City Council meeting, the next step will be to appoint two council members to negotiate the final Memorandum of Agreement with Westhaven Community Services District.
Staff Recommendations:
• Authorize staff to begin drafting revisions to the Memorandum of Agreement and negotiate with WCSD to address the new conditions.
Attachments:
Interim Memorandum of Agreement with WCSD
CONSENT AGENDA ITEM 7
SUPPORTING DOCUMENTATION ATTACHED
7. Resolution 2024-16; Adopting CalTrans Local Assistance Procedures Manual Chapter 10 – Consultant Selection Dated January 2024.
AGENDA ITEM
Date: September 24, 2024
______________________________________________________________________ __
Item: Adoption of A RESOLUTION BY CITY COUNCIL OF THE CITY OF TRINIDAD
ADOPTING CALTRANS LOCAL ASSISTANCE PROCEDURES MANUAL CHAPTER 10: CONSULTANT SELECTION DATED JANUARY 2024
Summary: The State of California Department of Transportation (Caltrans) has developed the Local Assistance Procedures Manual (LAPM), Chapter 10, Consultant Selection which sets forth policies and procedures to be utilized by local agencies in the procurement and management of A&E contracts on state and federal funded transportation projects to ensure compliance with applicable Federal and State laws and regulations and to maintain eligibility for Federal-Aid reimbursement.
The City recently procured the On-Call City Engineer contract in April 2024, and adopted the January 2023 LAPM Chapter 10 on August 22, 2023 at the beginning of the procurement process. The January 2024 LAPM Chapter 10 is now in effect so the City needs to adopt the new version. Caltrans staff has recommended adopting a Resolution adopting LAPM Chapter 10 and amended in future updates.
Staff Recommendation:
• Adopt Resolution 2024-16 ADOPTING CALTRANS LOCAL ASSISTANCE PROCEDURES MANUAL CHAPTER 10
Document Link: Caltrans Local Assistance Procedures Manual, Chapter 10 Consultant Selection
https://dot.ca.gov/-/media/dot-media/programs/localassistance/documents/lapm/ch10.pdf.
Trinidad City Hall Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
707-677-0223
RESOLUTION 2024-16
A RESOLUTION BY CITY COUNCIL OF THE CITY OF TRINIDAD
ADOPTING CALTRANS LOCAL ASSISTANCE PROCEDURES MANUAL CHAPTER 10:
CONSULTANT SELECTION DATED JANUARY 2024
WHEREAS, the City of Trinidad is responsible for constructing transportation projects that are state and federally funded; and
WHEREAS, in order to comply with the Federal regulations and due to limited staffing and expertise, certain services including Architectural and Engineering (A&E) are contracted out to qualified firms; and
WHEREAS, the Federal regulations set forth standards for procuring and administering A&E contracts; and
WHEREAS, the provisions of the Brooks Action (40 United States Code, Section 1104) requires local agencies to award federally funded engineering and design-related contracts, otherwise known as A&E contracts, on the basis of fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 CFR 31.201-3); and
WHEREAS, pursuant to 23 CFR 172.5 (b), local agencies shall develop and sustain organizational capacity and provide the resources necessary for the procurement, management, and administration of engineering and design related consultant services, reimbursed in whole or in part with Federal-Aid Highway Program funding as specified in 23 U.S.C 106(g)(4)(A); and regulations; WHEREAS, the provision 23 CFR 172.5 (b)(1) requires local agencies to adopt written policies and procedures for the procurement, management, and administration of engineering and design related consultant services in accordance with applicable Federal and State laws and regulations; and WHEREAS, the State of California Department of Transportation (Caltrans) has developed the Local Assistance Procedures Manual (LAPM), Chapter 10, Consultant Selection which sets forth policies and procedures to be utilized by local agencies in the procurement and management of A&E contracts on state and federal funded transportation projects to ensure compliance with applicable Federal and State laws and regulations and to maintain eligibility for Federal-Aid reimbursement; and WHEREAS, the City of Trinidad has developed additional policies, dated 1994, to ensure avoidance of conflict of interests in the performance of A&E services for state and federal funded transportation projects; and
WHEREAS, the City of Trinidad desires to adopt Caltrans’s LAPM Chapter 10 and the City’s conflict of interest policies for compliance with Federal regulations on the procurement and administration of A&E contracts.
NOW, THEREFORE, BE IT RESOLVED BY the CITY COUNCIL OF THE CITY OF TRINIDAD AS FOLLOWS:
1.The above recitals are true and correct findings of the Trinidad City Council;
2. The Local Assistance Procedures Manual, Chapter 10, Consultant Selection dated January 2024 or amended in future updates, is approved and adopted; and
3. The A&E Services Administration and Procurement Policies developed by the City of Trinidad including for State and Federal Funded Projects dated 1994, are approved and adopted; and
4. Authorizes the City Manager to approve amendments to the City’s adopted A&E Services Administration and Procurement Policies in consultation with the Federal Highways Administration.
APPROVED AND ADOPTED by the TRINIDAD CITY COUNCIL of Humboldt County of the State of California this 24th day of September, 2024.
I, the undersigned, do hereby certify that the foregoing Resolution Number 2024-16 was duly adopted by the TRINIDAD CITY COUNCIL.
Passed, approved, and adopted by the following vote:
Ayes:
Noes:
Absent:
Abstain:
Attest:
________________________ _________________________
Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
DISCUSSION AGENDA ITEM 8
SUPPORTING DOCUMENTATION ATTACHED
8. First Amendment to the City Manager Employment Agreement.
AGENDA ITEM: First Amendment to the City Manager
Employment Agreement
Date: September 24, 2024 _______________________________________________________________________ ANALYSIS:
A*orney Russ Gans has prepared the a*ached First Amendment to the City Manager Employment Agreement. This amendment conDnues the terms of the exisDng Employment Agreement of September 12, 2023, on a month-to-month basis. The only change other than the month-to-month basis is the terminaDon of the agreement. In the Amendment, the employer can give 15 days noDce instead of 30 days to terminate, and the employee can give 30 days noDce instead of 60 days. The City Council can modify the terminaDon noDce period if it chooses a different noDce period.
ACTION:
Approve the First Amendment to the City Manager Employment Agreement between the City of Trinidad and Eli Naffah.
Attachments:
1. First Amendment to the City Manager Employment Agreement
2. Employment Agreement between the City of Trinidad and Eli Naffah 1 First Amendment to the City Manager Employment Agreement (City of Trinidad, CA)
This FIRST AMENDMENT TO THE CITY MANAGER EMPLOYMENT AGREEMENT (“First Amendment”) is made and entered into on September 24, 2024, by and between the CITY OF TRINIDAD, CALIFORNIA (hereinafter “Employer”), and Eli Naffah (hereinafter “Employee”).
RECITALS
WHEREAS, the Employer is represented in this Employment Agreement by its governing body, the City Council;
WHEREAS, the Employer and Employee previously entered into the City Manager Employment Agreement on or about September 12, 2023 (“Agreement”); WHEREAS, the original Agreement has reached the conclusion of the one (1) year term; and WHEREAS, the Employer and Employee desire to extend the previous Agreement on a monthto-month basis and desire to enter into this First Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and incorporating the foregoing Recitals as material terms hereof, the parties agree as follows:
Section 1. Amendment to Section 5. WORK SCHEDULE OF THE EMPLOYEE:
The entirety of Section 5 of the Agreement shall be deleted and the following underlined text shall be deemed substituted in its place and Section 5 of the Agreement shall hereinafter be read and interpreted as of the following text appears in said Agreement:
The Employer and the Employee agree that the Employee shall carry out the above responsibilities on a month-to-month basis, at an average rate of 30 hours per week. The Employee shall work an average of four days per week. The Employee shall receive advance approval from the Mayor to schedule the Employee’s absence for any absence longer than one (1) day. The Employee acknowledges that Employee serves in an administrative, supervisorial capacity and the position of City Manager is exempt from overtime wage requirements and Employee has no rights or expectation to additional compensation unless a written amendment to this Agreement is approved and adopted by the City Council, in its discretion.
The Employee will report for work at a work location to be provided by the Employer during normal work hours, and at such other times (such as evening meetings) as to be determined and agreed upon by the Employer and the Employee.
2 During the term of this Agreement, flexibility in hours worked per day or per week is assumed, to allow for personal or family events, or for extraordinary City Council sessions, etc.
Section 2. Amendment to Section 6. COMPENSATION:
The entirety of Section 6 of the Agreement shall be deleted and the following underlined text shall be deemed substituted in its place and Section 6 of the Agreement shall hereinafter be read and interpreted as of the following text appears in said Agreement:
The Employee shall receive a monthly salary of $7,046 effective September 1, 2024 (paid biweekly at the rate of $3,252).
During the term of this Agreement, the Employee shall be provided with a City cell phone for City business. This cell phone provision assumes reasonable access to the City Manager after hours by City Staff.
During the term of this Agreement, the Employee shall be included in the Life Insurance benefit provided to full time City Employees.
To the extent allowed by law, the Employee will be allowed to pay some of his hourly compensation, before taxes, into the Employer’s deferred compensation plan. The Employee shall receive the equivalent of 6% of the employee’s salary as a City contribution to Employer's deferred compensation plan and up to an additional amount of 6% of the employee’s salary paid by the City based on the level of contribution by the employee.
During the term of this Agreement, the Employee shall receive $400 per month as a Rent Stipend to offset the cost of renting housing in the Greater Trinidad area, in order to be readily accessible to the City.
During the term of this Agreement, the Employee shall receive $100 per month as a Gas Stipend to offset the cost of travel to the City, and in lieu of mileage reimbursement for travel in Humboldt County.
There are no other compensation or benefits provided to the Employee by the Employer.
Section 3. Amendment to Section 7. TERM; EXCLUSIVE EMPLOYMENT:
The entirety of Section 7 of the Agreement shall be deleted and the following underlined text shall be deemed substituted in its place and Section 7 of the Agreement shall hereinafter be read and interpreted as of the following text appears in said Agreement:
Unless terminated earlier as stated in Sections 10 and/or 11 of this Agreement, below, the term of this Agreement shall be month-to-month beginning September 1, 2024. 3 Employee agrees that, during the months employed, as described in Section 5 herein, Employee remains in the exclusive employ of Employer during the employment term and will neither accept employment nor become employed by another employer which requires the performance of work duties during the periods described. Notwithstanding this, and at the sole discretion of Employer, Employee may accept compensation for outside consulting, writing, or speaking engagement; or while teaching or training; or while serving on the Board of Directors of one or more corporations; provided, however, that such outside activities or work are not inconsistent or incompatible with City of Trinidad employment. Remaining on the faculty with College of the Redwoods is permitted within this provision.
Section 4. Amendment to Section 11. TERMINATION OF THE AGREEMENT:
The entirety of Section 11 of the Agreement shall be deleted and the following underlined text shall be deemed substituted in its place and Section 11 of the Agreement shall hereinafter be read and interpreted as of the following text appears in said Agreement:
The removal/dismissal of the Employee shall be affected by a majority vote of the entire City Council. In the event of termination of this Agreement by the Employer for cause, the Employee shall be provided no severance payment, and will be paid for any work done to the time of termination.
In the event of termination of this Agreement by the Employer without cause, the Employee shall be compensated for all work performed up and to the date of employment termination and will be provided a severance payment equivalent to one month’s pay at the Employee’s current compensation level. Employer may terminate this month-to-month agreement at any time by providing Employee 15 days written notice of termination, in which case Employee will be paid compensation on a prorated basis up and to the date of termination.
”Cause” for the purposes of this Section 11, shall be defined as a documented failure of the Employee to effectively perform the duties of the position as defined in Section 2, or other specific action by the Employee which a majority of the City Council finds to warrant termination of the agreement.
In the event of termination of this Agreement by election of the Employee, the Employee will act in a professional manner by giving 30 days prior notification to the City Council and will assist in whatever transition is necessary upon termination of employment, within reason.
Section 5. No Other Modifications:
Except as modified or amended herein, all terms and conditions of the Agreement shall continue unmodified and in full force and effect.
4 EXECUTION OF THE AGREEMENT
The Employer approved this Agreement and authorized the Mayor to sign on the Employer’s behalf at their duly noticed Council meeting of September 24, 2024.
IN WITNESS THEREOF, the Employer and the Employee have executed this Agreement effective September 1, 2024.
EMPLOYER: EMPLOYEE:
By: _____________________________ By: _____________________________ Cheryl Kelly, Mayor of the City of Eli Naffah
Trinidad
Date: ________________, 2024 Date: _________________, 2024 This EMPLOYMENT AGREEMENT ("Agreement") is made and entered into on September 12, 2023, by and between the CITY OF TRINIDAD, CALIFORNIA, (hereinafter "Employer"), and Eli Naffah (hereinafter "Employee").
RECITALS
WHEREAS, the Employer is represented in this Employment Agreement by its governing body, the City Council; and
WHEREAS, the Employee has significant applicable experience in local government and public sector management that qualifies him to perform the duties of City Manager; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:
AGREEMENT
Section 1. DUTIES OF THE EMPLOYER
It shall be the responsibility of the Employer to provide timely support and assistance to the Employee in his role as the City Manager.
The Employer shall provide policy guidance to the Employee by ongoing acts of the City Council.
Section 2. DUTIES OF THE EMPLOYEE
A. City Management: It shall be the responsibility of the Employee to manage the daily affairs of the City of Trinidad in a manner that is consistent with the generally accepted practices of city management in the State of California.
B. Law Enforcement: It shall be the duty of the Employee to see that all laws and ordinances of the Employer are duly enforced, and to see that all franchises, licenses, and permits granted by the Employer, and contracts entered into by the Employer are faithfully performed and observed.
C. Authority Over Other Employees: It shall be the duty and the authority of the Employee to control and give directions to all City Staff and contracted employees such as the City Planner, City Attorney, City Building Inspector.
D. Power of Appointment and Removal: It shall be the duty of the Employee to appoint, remove, promote, demote, suspend, or dismiss all officers and employees of the Employer, subject to all applicable personnel ordinances, rules and regulations. No department head shall be appointed or removed until the Employee has first reviewed such appointment or removal with the City Council and received approval of such appointment or removal from the City Council, in Executive Session.
E. Legislative Recommendations: It shall be the duty of the Employee to recommend to the City Council for adoption of measures, ordinances, and resolutions as he deems necessary or expedient.
F. Council Meetings and Records: It shall be the duty of the Employee to prepare agenda materials for City Council meetings, and to maintain a complete and up-to-date record of the City Council meetings.
G. Attendance at City Council Meetings: The Employee shall attend all meetings of the City Council except (1) when specifically excused from attending a particular meeting, or (2) when his removal is under consideration by the City Council.
H. Financial Reports: The Employee shall keep the City Council at all times fully advised as to the financial condition and needs of the Employer.
I. Budget Preparation: It shall be the duty of the Employee to prepare and submit the proposed Annual Budget to the City Council for its consideration and to be responsible for the efficient administration of the budget after its adoption by the City Council.
J. Fiscal Responsibility: It shall be the responsibility of the Employee to allocate funds and approve expenditures necessary for the ongoing operations of the City of Trinidad, in accordance with allocation made in the approved and/or amended Annual Budget.
K. Long Term Planninq: The Employee, with assistance from staff and consultants, shall develop long-range plans and capital improvement programs for maintaining and upgrading of City of Trinidad facilities, buildings, and infrastructure.
L. Tracking Laws: The Employee shall keep track of changes to State and Federal laws that are applicable to the Employer.
M. Grant Applications: It shall be the responsibility of the Employee, with assistance from staff and consultants, to apply for and administer Federal, State, and private foundation grant funding.
N. Employee Relations: It shall be the responsibility of the Employee to carry out the labor relations process on behalf of the City Council.
O. Additional Duties: The City Council may, from time to time by ordinance, resolution, or other action, fix any such other terms and conditions of employment as it may determine, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the City of Trinidad's Municipal Code, or any other law. It shall be the duty of the Employee to perform such other duties and exercise such other powers as may be delegated to him by the City Council.
Section 3. SPECIFIC PROJECT DUTIES
The Employer may direct the Employee to undertake and manage specific projects leading to the betterment of the City of Trinidad and the established policy guidelines of the City Council.
Specific projects will vary and will be defined by the City Council. Examples of specific projects may include updating of the General Plan, pursuit of improvements to the Water System, preparing or managing the preparation of new or amended plans or studies, undertaking of negotiations for new or revised professional services, and solicitation of actions that would improve the revenue situation for the Employer.
Section 4. DIRECTION AND SUPERVISION OF THE EMPLOYEE
The Employee must be able to perform the duties of this position on an ongoing basis with minimal direction from the Employer.
The Employee shall take specific directions, orders, and instructions from the Employer through action of the majority of the City Council acting in a duly convened meeting, and no individual Council member shall give any orders or instructions to the Employee.
Section 5. WORK SCHEDULE OF THE EMPLOYEE
The Employer and the Employee agree that the Employee shall carry out the above responsibilities forty-seven weeks a year, at an average rate of 30 hours per week, for an annual total of no more than 1410 hours. Of the 47 weeks contracted for, it is anticipated and expected that the Employee shall work (a) at least one day each week, and (b) four days per week generally. The Employee shall receive advance approval from the Mayor for being absent any of the remaining five weeks of the year that the Employee is not contracted to work at all.
The Employee will report for work at a work location to be provided by the Employer during normal work hours, and at such other times (such as evening meetings) as to be determined and agreed upon by the Employer and the Employee.
Of the contracted 1410 hours annually, some flexibility in hours worked per day or per week is assumed, to allow for personal or family events, or for extraordinary council sessions, etc.
The Employee will be asked to attend annual meetings of the California League of Cities.
The Employer will cover expenses for attendance at said meetings, not to exceed 2 (two) meetings per year.
Section 6. COMPENSATION
The Employee shall receive an annual salary of $84,552 (which includes a 4% COLA increase) effective July 1, 2023.
The Employee shall be provided with a City cell phone for City business. This cell phone provision assumes reasonable access to the City Manager after hours by City Staff.
The Employee shall be included in the Life Insurance benefit provided to full time City Employees.
To the extent allowed by law, the Employee will be allowed to pay some of his hourly compensation, before taxes, into the Employer’s deferred compensation plan. The Employee shall receive the equivalent of 6% of the employee’s salary as a City contribution to Employer's deferred compensation plan and up to an additional amount of 6% of the employee’s salary paid by the City based on the level of contribution by the employee.
The Employee shall receive $400 per month as a Rent Stipend to offset the cost of renting housing in the Greater Trinidad area, in order to be readily accessible to the City.
The Employee shall receive $100 per month as a Gas Stipend to offset the cost of travel to the City, and in lieu of mileage reimbursement for travel in Humboldt County.
There are no other compensation or benefits provided to the Employee by the Employer.
Section 7. TERM
The term of this Agreement shall be from September 1, 2023 through August 31, 2024.
Employee agrees that, during the periods described in Section 5 herein, Employee remains in the exclusive employ of Employer during the employment term and will neither accept employment nor become employed by another employer which requires the performance of work duties during the periods described. Notwithstanding this, and at the sole discretion of Employer, Employee may accept compensation for outside consulting, writing, or speaking engagement; or while teaching or training; or while serving on the Board of Directors of one or more corporations; provided, however, that such outside activities or work are not inconsistent or incompatible with City of Trinidad employment. Remaining on the faculty with College of the Redwoods is permitted within this provision.
At the end of the term of this Agreement, the Agreement shall be reconsidered by both parties and, at such time, may be terminated of extended with any modifications that are agreed upon by both parties.
Section 8. INDEMNIFICATION
In addition to that required under state and local law, the Employer shall defend, save harmless, and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of a lawful alleged act or omission occurring in the performance of Employee's duties. Employer will compromise and settle such claims or disputes as appropriate and pay the amount of any settlement or judgment rendered thereon.
Section 9. PERFORMANCE EVALUATION
The City Council shall review and evaluate annually the performance of the Employee.
Said review and evaluation shall be in accordance with the POSITION RESPONSIBILITIES of the attached document: City Manager Job Description & Evaluation. Said POSITION RESPONSIBILITIES may be added to or deleted from as the Council may from time to time determine, in consultation with Employee. Further, the City Council shall provide the Employee with a summary written statement of the findings of the City Council and provide an adequate opportunity for the Employee to discuss his evaluation with the City Council.
Annually, the City Council and Employee shall define such goals and performance objectives that they determine necessary for the proper operation of the City of Trinidad and the attainment of the City Council's policy objectives and shall further establish a relative priority among those goals and objectives, said goals and objectives to be reduced to writing. They shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations involved.
In effecting the provisions of this Section, the City Council and Employee mutually agree to abide by the provisions of applicable law.
Section 10. AT-WILL EMPLOYMENT
This is an at-will employment relationship, and either the Employer or the Employee may terminate the relationship for any reason, with or without cause, and without prior written notice, except as specified in Section 11 of this Agreement.
Pursuant to the Trinidad Municipal Code, the parties acknowledge and agree that the City Manager serves at the pleasure of the City Council; that there exists no contract for or right of employment, either express or implied, with the sole exception of the provisions contained herein; that the City Council may terminate the employment of the Employee with or without cause; and that upon such termination, with or without cause, Employee's sole remedy under the laws of the State of California, the laws of these United States, the Trinidad Municipal Code, and this Agreement consists of the provisions contained herein.
Section 11. TERMINATION OF THE AGREEMENT
The removal/dismissal of the Employee shall be affected only by a majority vote of the entire City Council. In the event of termination of this Agreement by the Employer for cause, the Employee shall be provided no severance payment, and will be paid for any work done to the time of termination.
In the event of termination of this Agreement by the Employer without cause, the Employee shall be provided a severance payment equivalent to one month’s pay at the Employee’s current compensation level.
‘Cause’ for the purposes of this paragraph, shall be defined as a documented failure of the Employee to effectively perform the duties of the position as defined in Section 2, or other specific action by the Employee which a majority of the City Council finds to warrant termination of the agreement.
In the event that the City Council elects to terminate the Agreement, the Employee will be provided the option to resign from the position.
In the event of termination of this Agreement by act of the Employee, the Employee will act in a professional manner by giving 60 days notification to the City Council and will assist in whatever transition is necessary upon his termination of employment, within reason.
Section 12. AMENDMENTS
Unless otherwise specified herein, this Agreement may be changed or modified only upon written consent of the parties hereto.
Section 13. GENERAL PROVISIONS
If any provisions, or any portion thereof, contained in this Agreement are held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.
If any provisions of the City of Trinidad's Personnel Rules, Regulations, and Policies conflict with the at-will employment status described in this Agreement, such conflicts will be resolved in favor of the at-will status contained in this Agreement.
Employer and Employee agree that they will, at all times, assist each other in defending any litigation involving the City of Trinidad, or Employer's duties with Employer, and Employer agrees to defend Employee against any claim or action against him arising out of an act or omission occurring within the scope of Employee's employment. The parties shall each comply with the requirements of Section 825 of the Government Code or its successor implementing this paragraph.
Section 14. ENTIRE AGREEMENT
This Agreement is intended by the parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the provision thereof and supersedes any and all prior agreements and understanding, oral or written, in connection therewith.
Section 15. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together, shall constitute one and the same Agreement.
EXECUTION OF THE AGREEMENT
The Employer approved this agreement and authorized the Mayor to sign on the Employer’s behalf at their duly noticed Council meeting of September 12, 2023.
IN WITNESS THEREOF, the Employer and the Employee have executed this Agreement effective September 1, 2023.
EMPLOYER EMPLOYEE
By: _____________________ By:_______________________
Mayor Cheryl Kelly Eli Naffah
Date: ________________,2023 Date:_________________ ,2023 DISCUSSION AGENDA ITEM 1
SUPPORTING DOCUMENTATION ATTACHED
1. Prop 218 Public Hearing on Water Rate Increase and Consideration of Adopting Resolution 2024-17; Amending Fees and Charges for Water Rates.
City of Trinidad Resolution 2012-01 Page 1 of 1
Trinidad City Hall Cheryl Kelly, Mayor
P.O. Box 390 Gabriel Adams, City Clerk
409 Trinity Street
Trinidad, CA 95570
707-677-0223
RESOLUTION 2024-17
A RESOLUTION OF THE TRINIDAD CITY COUNCIL AMENDING FEES AND CHARGES FOR
WATER SERVICE
WHEREAS, the Trinidad City Council is authorized under the provisions of Ordinance No. 157 to amend water rates from time to time by resolution of the Trinidad City Council in accordance with California State Proposition 218; and WHEREAS, the City of Trinidad City Council recognizes the need to effectively manage water resources and to more equitably allocate the costs of operation, maintenance and repair of the water system among residential and commercial users.
WHEREAS, with guidance from the Rural Community Assistance Corporation (RCAC) the Trinidad City Council completed a water rate analysis to evaluate rate structures to adequately recover system operating costs and provide sufficient funds to meet system infrastructure improvement costs; and
WHEREAS, the City of Trinidad needs to raise water rates to meet expenditures to assure compliance with regulatory monitoring and treatment requirements and to provide funds for capital expenditures such as water line repair/replacement to minimize water losses between the treatment plant and household meters; and WHEREAS, the City Council has previously set September 10, 2024 as the date for a Public Hearing for consideration of a revised schedule of water rates and charges with programmed increases for the next 5-years, and WHEREAS, a notice of the September 10, 2024 public hearing and of the proposed water rate increase and instructions to file a written protest was mailed to each water customer and owner of record 45 days in advance of the public hearing; and WHEREAS, the regular meeting scheduled for September 10 was canceled, and all water customers were mailed a notice of Prop 218 Hearing comment period extension to September 24, and WHEREAS, the City Council has considered all the protests against the proposed water rate increase, and less than a majority of owners have submitted valid protests; and
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Trinidad does hereby adopt the following rate structure to be established for the designated services, effective October 01, 2024:
PASSED, APPROVED AND ADOPTED this 24th Day of September, 2024 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
Standard Rates (For Inside and Outside City Limit Customers) 2025 2026 2027 2028 2029
Base Rate $66.20 $72.82 $80.10 $88.11 $96.92
Rate per 100 CF $5.85 $6.44 $7.08 $7.79 $8.56
Proposition 218 Notification:
45-day notice of proposed water rate changes, procedure, and public hearing date Date of Notice: July 15, 2024
--------------------------------------------------------------------------------------------------------------------- Hearing Date and Time: September 10th, 2024, at 6:00pm
Hearing Location: Trinidad Town Hall, 409 Trinity Street, Trinidad, CA 95570 This letter is to advise you that the City of Trinidad (City) is proposing a five-year water rate program adjustment for all residential and commercial customers. The proposal will be considered by the City Council at a Public Hearing on Sep. 10, 2024. You are receiving this notice in compliance with California Proposition 218 requirements that all impacted property owners are mailed notice of proposed rate changes at least 45 days prior to a public hearing. If you have any questions regarding this notice, please call (707) 677-0223.
BASIS OF PROPOSED RATES
The City is required by state law to collect revenues sufficient to fund current and future costs of operating, maintaining and administering the existing water facilities as well as to fund the capital improvements and infrastructure replacement program. These revenues allow the City to protect public health and safely and reliably deliver clean, safe drinking water to all connections. By state law, the district may not collect more revenue than is necessary to recover the costs of providing services. The proposed rates were developed through a comprehensive water rate study designed to meet all legal requirements and fairly and equitably recover the required revenue. The water rate study was prepared by Rural Community Assistance Corporation (RCAC) and is available for review by the public on the City website, at https://www.trinidad.ca.gov/water/page/water-rates.
WHY THE CITY’S WATER RATES MUST BE ADJUSTED
Customer water rates are a primary source of revenue to operate the water system. These rates generate the revenue to operate the system. To continue the water system’s ability to provide reliable water services to our customers, rate increases are necessary to cover increasing operational costs and to invest in necessary upgrades and emergency preparedness.
It has been seven years since the last water rate increase for they City of Trinidad. During that time 1) Inflation alone has increased costs by 25%
2) Proposition 218 case law has driven water rate structure changes in the industry 3) A long-term water system staff member left the City and contracted services had to be brought in to operate the plant in compliance with Title 22 of the California Code of Regulations § 63765 (22 CCR § 63765) – Water Treatment Facility Staff Certification Requirements. The City operates a treatment plant classified as a T3 plant. This requires that a highly certified water treatment operator oversee all operations to ensure proper treatment is achieved to deliver safe drinking water to the City’s customers.
A rate option was chosen that would likely increase water sales revenue by 26% percent, if the rates were in effect for the entire 2024-2025 fiscal year. This rate adjustment was chosen after extensive analysis of revenue requirements, affordability, and alternate adjustment considerations.
WHAT STEPS DID THE CITY TAKE TO REDUCE COST BEFORE CONSIDERING INCREASING CUSTOMER RATES?
The City conducted a comprehensive line by line review of the budgetary expenditures to maximize available resources and reduce operational costs to a minimum. The City analyzed the best options to bring costs down while complying with 22 CCR § 63765 and other safe drinking water act requirements.
The City will be working to reduce contracted services costs over the next five years by bringing in an inhouse Grade 3 Treatment Plant Operator. This transition time will require close monitoring of water fund expenses and water sales revenue to ensure revenue is trending towards meeting annual operation and maintenance (O&M) requirements and eventually towards meeting annual O&M requirements as well as investing in necessary water system upgrades and emergency preparedness.
PROPOSITION 218 PUBLIC HEARING PROCEDURE
All property owners and other interested parties are invited to attend the hearing and present written and/or oral comments. As an owner or customer of record of a parcel subject to the imposition of the proposed rate adjustments, you may submit a WRITTEN protest to the proposed rate changes. Only ONE written protest will be counted per identified parcel. If written protests are presented by a majority of the owners of property that are subject to the rate change prior to the end of the hearing, the City Council cannot approve the change. Nobody wants more costs, but City water users must consider that without this rate increase, the City will be failing to cover annual operations and maintenance costs for the water system.
Written protests must include:
• Your original signature and date
• Your name typed or printed under the signature
• The address of the property
• An affirmation that you are the owner or customer of record of the property • Your reasons for protest
Written protests will NOT be accepted by e-mail or fax. Verbal protests will NOT be counted. Protests must be received (not postmarked) prior to the close of the public hearing. Written protests may be submitted to:
Trinidad Town Hall
409 Trinity Street
Trinidad, CA 95570
The City Council, after the close of the public hearing will adopt the rates. The rates will not exceed the increases set forth herein.
CURRENT RATES
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
PROPOSED MONTHLY RATE SCHEDULE
The proposed rate schedule is set forth below. The water rates will be adjusted beginning on Oct. 1, 2024 and will adjust on July 1 of the subsequent years through 2028. The final adjustment under this resolution will be on July 1, 2028. Any subsequent adjustments will be subject to a Proposition 218 hearing.
MONTHLY RATE SCHEDULES TO BE ADOPTED BY RESOLUTION IN SEPTEMBER 2024 Rate Option B
Standard Rates (For Inside and Outside City Limit Customers) 2025 2026 2027 2028 2029
Base Rate 66.20 72.82 80.10 88.11 96.92
Rate per 100 CF 5.85 6.44 7.08 7.79 8.56
Any judicial action or proceeding to attack, review, set aside, void, validate or annul an ordinance, resolution or motion adopting a fee or charge for water service, or modifying or amending an existing fee or charge for water service, shall be commenced within 120 days of the effective date or of the date of the final passage, adoption, or approval of the ordinance, resolution or motion, whichever is later.
NOTICE OF CONTINUED PUBLIC HEARING ON
PROPOSED TRINIDAD WATER RATES; EXTENSION OF PROTEST PERIOD PLEASE TAKE NOTICE that the Public Hearing originally noticed for September 10, 2024, regarding the City of Trinidad’s proposed water rates has been continued to September 24, 2024, at 6:00 PM at Trinidad Town Hall, 409 Trinity Street, Trinidad, CA 95570.
Pursuant to the 45-day notice mailed to all property owners of record on July 23, 2024, you may submit a written protest until the conclusion of the continued public hearing on September 24, 2024.
If you have any questions regarding this notice, please call (707) 677-0223.
As a reminder, the procedure to submit a protest is re-printed below. Please refer to the 45-day notice dated July 23, 2024, for further particulars.
PROPOSITION 218 PUBLIC HEARING PROCEDURE
All property owners and other interested parties are invited to attend the hearing and present written and/or oral comments. As an owner or customer of record of a parcel subject to the imposition of the proposed rate adjustments, you may submit a WRITTEN protest to the proposed rate changes. Only ONE written protest will be counted per identified parcel. If written protests are presented by a majority of the owners of property that are subject to the rate change prior to the end of the hearing, the City Council cannot approve the change. Nobody wants more costs, but City water users must consider that without this rate increase, the City will be failing to cover annual operations and maintenance costs for the water system.
Written protests must include:
• Your original signature and date
• Your name typed or printed under the signature
• The address of the property
• An affirmation that you are the owner or customer of record of the property • Your reasons for protest
Written protests will NOT be accepted by e-mail or fax. Verbal protests will NOT be counted. Protests must be received (not postmarked) prior to the close of the public hearing. Written protests may be submitted to:
Trinidad Town Hall
P.O. Box 390
409 Trinity Street
Trinidad, CA 95570
The City Council, after the close of the public hearing will adopt the rates. The rates will not exceed the increases set forth in the Proposition 218 Notification sent to you on July 23, 2024. The water rate study was prepared by Rural Community Assistance Corporation (RCAC) and is available for review by the public on the City website, at https://www.trinidad.ca.gov/water/page/water-rates. 1 RCAC 2024 Water Rate Study—City of Trinidad
City of Trinidad Drinking Water Rate Study
Rural Community
Assistance Corporation
This document was prepared in July
2024 through funds provided by
United States Department of
Agriculture
2 RCAC 2024 Water Rate Study—City of Trinidad
Submittal page
July 5, 2024
Luis Andrade
Water and Environmental Programs Director
Imperial Office
2407 Marshall St, Suite E
Imperial, CA 92251
Subject: City of Trinidad Water Rate Study
Dear Luis:
Enclosed please find the printed final report for the City of Trinidad water rate study.
The initial water rate study was presented to the City Council on May 28, 2024. Comments from the Council and the Public were taken into account and new rate options were presented to the Council on June 11, 2024. The Council selected decided they preferred a flat base rate and uniform usage rate.
Three flat base rate options are being presented on July 9, 2024 that differ based on the budget set aside to bring on a grade 3 water treatment operator. The Prop. 218 hearing is expected to occur on September 10, 2024, with the intention of implementing the new rates on October 1, 2024.
If you have any additional questions, feel free to contact Samantha Ryan at (707) 572-7465 or Lori Blau at (509) 867-6696.
Sincerely,
Lori Blau
Lori Blau
RCAC, Regional Field Manager
Community & Environmental Services
Enclosure: - City of Trinidad Water Rate Study
CC: City of Trinidad
3 RCAC 2024 Water Rate Study—City of Trinidad
Contents
1 Executive summary...................................................................................................................................... 4 2 Introduction ................................................................................................................................................. 7 3 Water system basic statistics....................................................................................................................... 9 4 Current financial condition and analysis....................................................................................................12 5 Rate setting process...................................................................................................................................15 6 Rate options...............................................................................................................................................19 7 Recommendations.....................................................................................................................................26 8 Appendices.................................................................................................................................................27 4 RCAC 2024 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 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).
Many adjustments were made by the City to keep rate options that increase rates for the average residential customer no more than 75%.
RCAC and City staff considered revenue requirements of the water system and the affordability to the City’s water customers prior to bringing any rate options to the City Council. Rate options discussed at City Council meetings included options based on the current rate structure, the AWWA meter equivalency ratios, and flat base rates. The City Council decided that a flat base rate with a uniform usage charge best suited their community. Three flat rate options are being presented in the final report to ensure expected annual operating and administrative costs are recovered through customer rates and to ensure that by the end of FYE 2029 the water system has collected some money in its 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. 5 RCAC 2024 Water Rate Study—City of Trinidad
The rate structure recommended by RCAC (Rate Option A) is based on the budget provided by City Staff on July 3, 2024; this budget was developed after staff did a more in-depth review of the salary needed to acquire a grade 3 water treatment operator in the area. This rate option’s budget includes hiring a grade 3 operator in FYE2025 and gradually decreasing the need for the support of Coleman engineering The other rate options presented today:
1. Rate Option B - Uses the revised budget that was presented to City Council on June 11, 2024. This budget included gradually decreasing the support from Coleman engineering but did not include additional salary to ensure a grade 3 water treatment operator could be hired and retained.
2. Rate Option C - Is an intermediate option. It is based on City Staff’s July 3, 2024 budget after staff did a more in-depth review of the salary needed to acquire a grade 3 water treatment operator in the area. This budget includes hiring a grade 3 operator in FYE2025 and ending the support from Coleman engineering by the end of FYE2025. This option puts the lowest amount of money into reserves to make water rates more affordable to its customers.
The rates recommended by RCAC are:
RCAC Recommended Water Rates - Rate Option A
Standard Rates (Inside & Outside Customers)
2025 2026 2027 2028 2029
Base Rate 84.63 93.09 102.40 112.64 123.91
Rate per 100 CF 6.90 7.59 8.35 9.18 10.10
With these rates, the average inside residential customer will see an increase of $54.28 per month in FYE 2025 while the average outside residential customer will see an increase of $36.25 per month.
Rate Option A - Percent Change
Inside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 87% 10% 10% 10% 10%
Rate/HCF 56% 10% 10% 10% 10%
Outside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 50% 10% 10% 10% 10%
Rate/HCF 25% 10% 10% 10% 10%
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:
6 RCAC 2024 Water Rate Study—City of Trinidad
2025 2026 2027 2028 2029
Residential Customer 1.97% 2.17% 2.39% 2.62% 2.89%
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.
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. 7 RCAC 2024 Water Rate Study—City of Trinidad
2 Introduction
About RCAC
Founded in 1978, RCAC provides training, technical, and financial resources, and advocacy so rural communities can achieve their goals. Since 1978, our dedicated staff and active board, coupled with our key values: leadership, collaboration, commitment, quality, and integrity, have helped effect positive change in rural communities across the West.
RCAC’s work includes environmental infrastructure (water, wastewater, and solid waste facilities); affordable housing development; economic and leadership development; and community development finance. These services are available to communities with populations of fewer than 50,000, other nonprofit groups, tribal organizations, farmworkers, colonias and other specific populations.
Headquartered in West Sacramento, California, RCAC’s employees serve rural communities in 13 western states and the Pacific islands.
Purpose of financial capacity analysis
RCAC conducted this water rate study on behalf of the City of Trinidad to ensure that rates are covering annual operating and administrative expenses. Additionally, this rate study looked at reserves needed for long-term sustainability of the water system and the affordability or water rates for customers.
A water rate study also helps to ensure that the amount collected by the City does not exceed the costof-service and remains in compliance with Proposition 218. While there is no single approach to rate design and setting, RCAC believes costsshould 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.
RCAC and City staff considered revenue requirements of the water system and the affordability to the City’s water customers prior to bringing any rate options to the City Council. Rate options discussed at City Council meetings included options based on the current rate structure, the AWWA meter equivalency ratios, and flat base rates. City Council decided that a flat base rate with a uniform usage charge best suited their community. Three flat rate options are being presented in the final report that ensure expected annual operating and administrative costs are recovered through customer rates and to ensure that by the end of FYE 2029 the water system has collected some money in its 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.
City council responsibilities
All findings and conclusion of this rate study are RCAC’s professional assessment and are not a directive for action to the community. Whereas RCAC strongly recommends its finding to the community, the City Council must act in accordance with city ordinance code and applicable state laws to enact RCAC recommendations in whole or in part.
Guiding principles in a rate study
Rates should be:
• Sustainable – Rates should cover the costs to the system to provide safe drinking water into the foreseeable future. This includes operations, repairs, interest, loan principal, capital replacement and all other costs related to providing safe drinking water. 8 RCAC 2024 Water Rate Study—City of Trinidad
• Fair – Rates should be fair to all rate payers. While the costs should not exceed the costs of providing the service, they do need to capture the true costs of the service. Low rates for current customers will require high rates for future customers. • Justifiable – Rates must be based on actual needs of the water enterprise system. The water enterprise system expenses and revenue should be tracked separately from other funds.
Therefore, the proposed rates are based on the best available information provided by the system.
Disclaimer
The findings, recommendations, and conclusions contained in this financial analysis are based on financial information provided to RCAC by the City. Although reasonable care was made to ensure the reliability of this information, no warranty is expressed or implied as to the correctness, accuracy or completeness of the information contained herein. Any action taken based on such findings, recommendations, or conclusions is undertaken at the discretion of the City Council. In no event will RCAC or its partners, employees, or agents, be liable for any decision made or action taken in reliance on the information contained in this analysis.
9 RCAC 2024 Water Rate Study—City of Trinidad
3 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. 10 RCAC 2024 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.
Coleman Engineering is currently providing licensed water treatment services to The City of Trinidad 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 customer class.
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%
11 RCAC 2024 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 $5,400-$7,000 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 timeframe of this rate study. The City should re-evaluate their water rates if this extension occurs prior to FYE2029.
12 RCAC 2024 Water Rate Study—City of Trinidad
4 Current financial condition and analysis
Current budget
The City has a water fund that is tracked in more detail through the water operating fund, the water capital improvement reserve fund, and by capital projects.
The net position of the Water Fund has decreased in the past several years but due to expenses exceeding revenue. A large reason for this was the City hired an engineering firm to serve as the contract operator while working to replace staff. The City is expected to have a certified water treatment and distribution operator on staff again and the annual expenses for the water department are expected to drop approximately 40 percent. However, since the last water rate increase in 2017, inflation has gone up approximately 25 percent and there were years prior that the City Council voted to not increase rates
2.5% annually to keep revenues in-line with the consumer price index and inflation.
Additionally, a large component of collecting the true cost of drinking water through water rates is collecting the necessary funds for capital replacement and improvement. The distribution system is aging along with other assets, and it is estimated that the City should be collecting a minimum of $152,264 annually from water rates to be able to replace assets as they reach the end of their expected useful life.
Current financial indicators
There are several financial indicators that can provide insight into the financial health of a water system.
A financial indicator analysis was conducted on the water operating fund for the most recent available audited financial statements, FYE 2022. The results of the analysis are:
• Quick ratio - measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. A number greater than one is considered good.
𝑄𝑢𝑖𝑐𝑘 𝑅𝑎𝑡𝑖𝑜 = 𝐶𝑎𝑠ℎ + 𝐶𝑎𝑠ℎ 𝐸𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
The water operating fund’s quick ratio is -3.0.
• Debt ratio - indicates the percentage of a company's assets that are provided via debt. A number above 0.4 may hinder the ability of the system to get a loan. Too low of a number may mean that the system isn’t utilizing the potential benefits that come from debt-financing such as the completion of larger projects while providing ratepayers with rate stabilization benefits.
𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜 = 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
The water operating fund’s debt ratio is 0.
• Days of cash on hand - measures whether a firm has enough resources to meet its short-term obligations. In 2022, total disbursements totaled $630,939 which equates to daily expenses of $1,729. The water operating fund has 0 days of cash on hand in the water operating fund. • Current ratio - measures whether a firm has enough resources to meet its short-term obligations.
A number between 1.5 and two is considered good. A number below 1.5 may be okay if the water system is about to bill as the assets will soon increase and the ratio will increase.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑒𝑠
13 RCAC 2024 Water Rate Study—City of Trinidad
The City’s current ratio is -3.0.
• %MHI - The State Water Resources Control Board has for some time used a 1.5% MHI threshold in funding to determine whether a severely disadvantaged community will receive a loan or grant funding. A %MHI above 1.5% in a SDAC indicates that the water system may have customer charges that are unaffordable.
The %MHI for inside city limits customers is 1.12% using the 2020 Census.
The %MHI for outside city limits customers is 1.40% using the 2020 Census. the analysis was done on FYE 2022 audited financials, it does not necessarily depict the City’s current situation. The current situation will be better depicted in the FYE 2023 audit report.
Current dedicated reserves
According to the FYE 2022 audit, the City water fund currently has $1,170,000 of restricted funds that are reserved to be spent on capital replacement and capital improvement. However, 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.
The City should consider the following reservesto ensure there are funds available for operating shortfalls, emergencies, loans, and capital replacement. Typical reserve limits are as follows:
• Operations & maintenance reserves – three times the expenses during a billing cycle. • Emergency reserves – cost to replace most critical equipment, typically a well pump. • Debt reserves – specific amount required by certain funders when receiving a loan. • Capital reserves – average annual rehabilitation and rehab budget.
Current financial policies
The City accounts for the water system as a proprietary fund. This means that the water system must be a self-supporting activity which renders a service on a user-charge basis to residents and businesses.
Budget controls
In preparing its annual budgets, the City attempts to estimate revenues using realistic and conservative methods and budgets its expenditure activities in a prudent manner. The City Council adopts an annual budget and budget adjustments during the fiscal year to reflect any changed priorities and availability of additional revenues.
The City Council, working with City staff, continues to evaluate revenues and expenses closely as well as future economic trends and capital improvement needs. For many years, the City has been challenged to allocate limited resources to the needs of the community. One strategy the City continues to implement is to actively seek grant funding for projects to maximize the availability of ongoing revenues to meet ongoing expenses.
Financial reports prepared for governing board
Mercello & Company Certified Public Accountants issued a report on Dec. 8, 2022, on the City’s internal controls over financial reporting. The auditorsfound the financialstatements present fairly, in all, material respects the different fund information and respective changes in financial position. It was noted that a 14 RCAC 2024 Water Rate Study—City of Trinidad
management discussion and analysis was omitted, but this did not affect the company’s opinion on the financial statements.
Current financial condition conclusion
Given the current rate structure, budget, financial indicators, and financial policies, the City should consider revising its water rate structure and increasing rates to keep up with increasing costs to inflation and to build reserves that can be used for O&M shortfalls, emergencies, loans (when applicable), and capital replacement.
15 RCAC 2024 Water Rate Study—City of Trinidad
5 Rate setting process
The rate study process contains many considerations that are unique to each water system. Examples of these considerations include:
• What are the system’s revenue sources?
• What is the system’s revenue requirement?
• What is the cost-of-service for different customer classes? • What special considerations could change the outlook for the next five years, such as:
o What is the age of the system?
o What system components need to be replaced and when?
o Is the system experiencing issues that need to be addressed? o Is additional capacity necessary to accommodate growth? o Are there new regulations that the system needs to accommodate? o Is there an expected change in customer base?
A water rate study consists of three main analyses: the revenue requirement, cost-of-service, and rate design. The purpose is to establish rates by designing a rate structure that fully recovers the revenue requirement while charging customer classes the appropriate amount as determined by the cost-ofservice.
Revenue requirement
The revenue requirement costs include expenses for operations and maintenance of the system; customer service and billing; capital replacement and upgrades to the system; and additional money for operational and emergency reserves.
Projected five-year budget
The City’s budget was looked at in two separate portions: the Water Operating Fund and the Capital Improvement Fund.
Water Fund
The rate study budget was based on the City’s FYE 2022 actuals, FYE 2023 budget and current actuals, and the FYE 2024 budget. To develop the budget for FYE2025-FYE2029, an annual inflation rate of 4% was assumed for each budget line item, unless City staff and RCAC staff determined that would not be an accurate calculation for a particular line.
Table 2 on the following page summarizes the Water Fund’s revenue vs. expenses by year based on the different rate options’ budgets. Table 3 shows the total expensesfor FYE25-FYE29 by expense type for the different rate options.
16 RCAC 2024 Water Rate Study—City of Trinidad
Figure 1 - Water fund's revenue vs. expenses by year based on Rate Option Budget Figure 2- Water fund's total projected expenses by rate option for FYE25-FYE29 17 RCAC 2024 Water Rate Study—City of Trinidad
Capital Improvement Fund
The City has a water capital improvement reserve fund that reserves the money to be spent on capital reserves or capital improvements. Coleman engineering prepared a 7-year capital improvement plan for the water treatment facility and City staff regularly work with engineers to apply for grant projects to replace water infrastructure. Two recent projects that were grant funded include the Small Community Drought Relief Program Tank & Pipelines and the Multi-Benefit Drought Relief Program Intertie.
There are four main options when it comes to funding large projects:
• The water capital improvement reserve fund
• Grants
• Loans and debt servicing
• A mix of the three options above
The project planning that occurs in CIP development allows the City to better leverage grants and loans to lower the burden on the reserve fund and keep rates affordable for customers.
Suggested replacement plan
RCAC used data provided by the City to develop a capital replacement plan that calculated the annual reserve required to replace system assets as they reached the end of their estimated remaining life. All current assets were assigned replacement costs via preliminary engineering reports or The Southwest Environmental Finance Center Valuation Table 2.0. These costs were plugged into a capital replacement model that typically assumes a water system will be able to obtain 75% grant funding for all capital replacement projects over $100,000, while providing 25% match from itsreserve funds. It was determined that these assumptions would be unaffordable for Trinidad customers. City staff and RCAC decided to use the below funding assumptions based on affordability and the City’s success in obtaining grants.
Replacement Value From Cash Grant Loan
$0 - $20,000* 100% 0% 0%
$20,001- $100,000 100% 0% 0%
$100,001 - $500,000 25% 75% 0%
$500,001 - $9,999,999 5% 85% 10%
$10,000,000 5% 85% 10%
*Assets below $5,000 are assumed to be budgeted for in the annual budget With these assumptions, the City should be collecting $152,264 annually from its customer to replace assets as they reach the end of their useful life. This averages out to approximately $38.62 per customer per month.
Suggested reserve funding
The City should aim to fund reserve accounts to the following goals, keeping in mind the need to keep rates affordable to its customers:
• 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.
18 RCAC 2024 Water Rate Study—City of Trinidad
• 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.
This recommended funding means that the City should have at least $281,800 and up to $1,422,046 in investments for reserves, not including the debt reserves that are kept in a separate account. As of FYE 2022, the amount in reserves is $1,170,000.
Cost-of-service
Customers pay for annual O&M costs, annual administrative costs and reserve costs through a base rate and usage charge. The base rate is designed to cover fixed costs while the usage charges are designed to cover variable costs. Cost-of-service varies by customer classes based on water usage patterns, the potential demand each has on the water system, and the cost of infrastructure needed to serve each class.
Currently, the City has two customer classes: Inside city limits and outside city limits. The customers are charged a variable base rate based on location (inside vs outside city limits) and a variable usage rate based on location. The City collects approximately 65% of its revenue through the base rates and 35% of its revenue from the usage. RCAC estimated that 69% of the City’s expenses come from fixed costs, while 31% comes from variable costs.
Rate design
The revenue requirement and cost-of-service are used to help design the rates. Rates must be designed to fully cover the revenue requirement. Costs can generally be segmented into two categories: a) fixed costs, which are incurred whether customers use the water or not, and b) variable costs that are dependent on usage. There are numerous ways to design rates to collect the revenue requirement. Water systems usually charge a base rate, which is often intended to collect fixed costs, and a consumption rate, which is often intended to collect variable costs.
RCAC estimates that 69% of the City’s expenses come from fixed costs, while 31% comes from variable costs. The three rate options presented generate approximately 70% of the revenue from base rates and 30% of the revenue from usage charges.
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.
Rate options discussed at City Council meetings included options based on the current rate structure, the AWWA meter equivalency ratios, and flat base rates.
Current trends are for usage charges to be a flat dollar amount per volume, as the cost to produce water is assumed to be the same regardless of volume unless there is ample data and recordkeeping to prove otherwise. As such, it is recommended that a variable usage rate by location not be used, see California case law regarding Proposition 218 for additional information on this matter.
City Council decided that a flat base rate with a uniform usage charge best suited their community. 19 RCAC 2024 Water Rate Study—City of Trinidad
6 Rate options
Rate options overview
The following three rate options are being presented to the City Council for consideration. The options all use a flat base rate and uniform usage charge. They differ in the amount being set aside in the budget to bring on a grade 3 water treatment operator.
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 A (R.O.A) – It is the most expensive option for customers because it is based on City Staff’s July 3, 2024 budget after staff did a more in-depth review of the salary needed to acquire a grade 3 water treatment operator in the area. This budget includes hiring a grade 3 operator in FYE2025 and gradually decreasing the need for the support of Coleman engineering
• Rate Option B (R.O.B) – It is the least expensive option for customers because it is based on the revised budget presented to City Council on June 11, 2024. This budget included gradually decreasing the support from Coleman engineering but did not include additional salary to ensure a grade 3 water treatment operator could be hired and retained. (Rate Option B in this report is the same as Rate Option 3b in the June 11, 2024 letter to the City of Trinidad from RCAC with the title RE: Update after Initial Water Rate Study Presentation). • Rate Option C (R.O.C) – Is an intermediate option. It is based on City Staff’s July 3, 2024 budget after staff did a more in-depth review of the salary needed to acquire a grade 3 water treatment operator in the area. This budget includes hiring a grade 3 operator in FYE2025 and ending the support from Coleman engineering by the end of FYE2025.
Figure 3 - Average customer bill in comparison to other local water agencies 20 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option A
Rate Option A is the most expensive option for customers because it is based on City Staff’s July 3, 2024 budget after staff did a more in-depth review of the salary needed to acquire a grade 3 water treatment operator in the area. 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 A
Standard Rates
2025 2026 2027 2028 2029
Base Rate 84.63 93.09 102.40 112.64 123.91
Rate per 100 CF 6.90 7.59 8.35 9.18 10.10
Impact of Rate Option A
Percent increases for Rate Option A
Rate Option A - Percent Change
Inside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 87% 10% 10% 10% 10%
Rate/HCF 56% 10% 10% 10% 10%
Outside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 50% 10% 10% 10% 10%
Rate/HCF 25% 10% 10% 10% 10%
Customer bills and affordability for Rate Option A
The monthly bill for the average residential customer would be $126.01. The %MHI is below, the SWRCB first threshold of 1.5% is exceeded in FYE2025, with the second threshold of 2.5% MHI being exceeded in FYE2028.
FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Residential Customer 1.97% 2.17% 2.39% 2.62% 2.89%
21 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option A Budget
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 354,297$ 368,469$ 383,208$ 398,536$ 414,478$ O&M 110,604$ 115,028$ 119,629$ 124,414$ 129,391$
Contracted Services 140,000$ 100,000$ 60,000$ 47,500$ 35,000$ 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 $ 664,839 $ 645,832 $ 627,665 $ 637,872 $ 648,987 Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 16,621$ 16,621$ 16,621$ 16,621$ 16,621$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve $ - $ - $ - $ - $ -
Debt Service Charge $ - $ - $ - $ - $ -
Sub-Total Reserve Funding $ 169,885 $ 154,806 $ 148,947 $ 146,041 $ 144,979 Total Expenses $ 834,724 $ 800,638 $ 776,612 $ 783,913 $ 793,966 Revenue 2025 2026 2027 2027 2029
Sales Revenue 475,417$ 524,627$ 578,925$ 638,837$ 704,942$ Uncollectable Receivables $ - $ - $ - $ - $ -
Water Penalties $ - $ - $ - $ - $ -
New Water Hook-ups $ (951) $ (1,049) $ (1,158) $ (1,278) $ (1,410) General Fund Contract Operator Payment 300,000$ $ - $ - $ - $ - General Fund Loan $ - 100,000$ 75,000$ 50,000$ 25,000$
Total Revenue $ 774,466 $ 623,578 $ 652,767 $ 687,559 $ 728,532 Net Loss or Gain (Short/Over to Reserves) $ (177,060) (60,258) $ $ (123,845) $ (96,354) $ (65,435) Net Cashflow (Contribution to Reserves) $ 109,627 $ (22,254) $ 25,102 $ 49,687 $ 79,545 Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
$ (522,951)
$ 241,707
22 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option B
Rate Option B is the least expensive option for customers because it is based on the revised budget presented to City Council on June 11, 2024, prior to City Staff diving deeper into the costs of hiring a grade 3 treatment operator. This budget included gradually decreasing the support from Coleman engineering but did not include additional salary to ensure a grade 3 water treatment operator could be hired and retained. (Rate Option B in this report is the same as Rate Option 3b in the June 11, 2024 letter to the City of Trinidad from RCAC with the title RE: Update after Initial Water Rate Study Presentation).
Rate Option B
Standard Rates
2025 2026 2027 2028 2029
Base Rate 66.20 72.82 80.10 88.11 96.92
Rate per 100 CF 5.85 6.44 7.08 7.79 8.56
Impacts of Rate Option B
Percent increases for Rate Option B
Rate Option B - Percent Change
Inside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 46% 10% 10% 10% 10%
Rate/HCF 32% 10% 10% 10% 10%
Outside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 17% 10% 10% 10% 10%
Rate/HCF 6% 10% 10% 10% 10%
Customer bills and affordability for Rate Option B
The monthly bill for the average residential customer would be $101.30. The %MHI is below, the SWRCB first threshold of 1.5% is exceeded in FYE2025, with the second threshold of 2.5% MHI is never exceeded.
FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Residential Customer 1.58% 1.74% 1.92% 2.11% 2.32%
23 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option B Budget
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 254,564$ 264,747$ 275,337$ 286,350$ 297,804$ O&M 101,244$ 105,294$ 109,506$ 113,886$ 118,441$
Contracted Services 140,000$ 100,000$ 60,000$ 47,500$ 35,000$ 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 $ 555,746 $ 532,376 $ 509,671 $ 515,157 $ 521,364 Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 13,894$ 13,894$ 13,894$ 13,894$ 13,894$
Emergency Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Debt Reserve $ - $ - $ - $ - $ -
Debt Service Charge $ - $ - $ - $ - $ -
Sub-Total Reserve Funding $ 167,158 $ 152,079 $ 146,220 $ 143,314 $ 142,252 Total Expenses $ 722,903 $ 684,454 $ 655,890 $ 658,471 $ 663,616 Revenue 2025 2026 2027 2027 2029
Sales Revenue 381,353$ 420,903$ 464,550$ 512,717$ 565,871$ Uncollectable Receivables $ - $ - $ - $ - $ -
Water Penalties $ - $ - $ - $ - $ -
New Water Hook-ups $ (762.71) $ (841.81) $ (929.10) $ (1,025.43) $ (1,131.74) General Fund Contract Operator Payment 300,000$ $ - $ - $ - $ - General Fund Loan $ - 100,000$ 75,000$ 50,000$ 25,000$
Total Revenue $ 680,590 $ 520,061 $ 538,621 $ 561,691 $ 589,740 Net Loss or Gain (Short/Over to Reserves) $ (164,393) (42,313) $ $ (117,270) $ (96,780) $ (73,876) Net Cashflow (Contribution to Reserves) $ 124,845 $ (12,314) $ 28,950 $ 46,534 $ 68,376 Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
$ (494,632)
$ 256,390
24 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option C
Rate Option C is an intermediate option. It is based on City Staff’s July 3, 2024 budget after staff did a more in-depth review of the salary needed to acquire a grade 3 water treatment operator in the area.
This budget includes hiring a grade 3 operator in FYE2025 and ending the support from Coleman engineering by the end of FYE2025.
Rate Option C
Standard Rates
Meter Size 2025 2026 2027 2028 2029
Base Rate 75.83 83.41 91.75 100.93 111.02
Rate per 100 CF 6.85 7.54 8.29 9.12 10.03
Impacts of Rate Option C
Percent increases for Rate Option C
Rate Option C - Percent Change
Inside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 68% 10% 10% 10% 10%
Rate/HCF 55% 10% 10% 10% 10%
Outside Customer Percent Increases
2025 2026 2027 2028 2029
Base Rate 34% 10% 10% 10% 10%
Rate/HCF 24% 10% 10% 10% 10%
Customer bills and affordability for Rate Option C
The monthly bill for the average residential customer would be $116.93. The %MHI is below, the SWRCB first threshold of 1.5% is exceeded in FYE2025, with the second threshold of 2.5% MHI being not being exceeded until FYE2029.
FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Residential Customer 1.83% 2.01% 2.21% 2.44% 2.68%
25 RCAC 2024 Water Rate Study—City of Trinidad
Rate Option C Budget
Expenses 2025 2026 2027 2027 2029
Salaries & Benefits 354,297$ 368,469$ 383,208$ 398,536$ 414,478$ O&M 110,604$ 115,028$ 119,629$ 124,414$ 129,391$
Contracted Services 140,000$ 25,958$ 26,997$ 28,077$ 29,200$ 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 $ 664,839 $ 571,790 $ 594,662 $ 618,449 $ 643,187 Capital Reserves 152,264$ 137,185$ 131,326$ 128,420$ 127,359$ O&M Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Emergency Reserve 15,617$ 15,617$ 15,617$ 15,617$ 15,617$ Debt Reserve $ - $ - $ - $ - $ -
Debt Service Charge $ - $ - $ - $ - $ -
Sub-Total Reserve Funding $ 168,881 $ 153,803 $ 147,943 $ 145,037 $ 143,976 Total Expenses $ 833,720 $ 725,593 $ 742,605 $ 763,486 $ 787,162 Revenue 2025 2026 2027 2027 2029
Sales Revenue $ 439,945 $ 485,596 $ 535,978 $ 591,580 $ 652,943 Uncollectable Receivables $ - $ - $ - $ - $ -
Water Penalties $ - $ - $ - $ - $ -
New Water Hook-ups $ (880) $ (971) $ (1,072) $ (1,183) $ (1,306) General Fund Contract Operator Payment $ 300,000 $ - $ - $ - $ - General Fund Loan $ - $ 100,000 $ 75,000 $ 50,000 $ 25,000 Total Revenue $ 739,065 $ 584,625 $ 609,906 $ 640,397 $ 676,637 Net Loss or Gain (Short/Over to Reserves) $ (94,655) $ (140,968) $ (132,699) $ (123,089) $ (110,525) Net Cashflow (Contribution to Reserves) $ 74,227 $ 12,834 $ 15,244 $ 21,949 $ 33,451 $ (601,936)
$ 157,705
Net Loss or Gain (Short/Over to Reserves) Over 5 Year Period Net Cashflow (Contribution to Reserves)
26 RCAC 2024 Water Rate Study—City of Trinidad
7 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 A due to its budget that aims to collect the true cost of providing drinking water by including the expected salaries needed to bring on a grade 3 water treatment operator while gradually decreasing the need to rely on Coleman Engineering for support services.
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. 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. 27 RCAC 2024 Water Rate Study—City of Trinidad
8 Appendices
8.1 Projected five-year budget (FYE2025 – FYE 2029) for Rate Option A
8.2 Projected five-year budget (FYE2025 – FYE 2029) for Rate Option B
8.3 Projected five-year budget (FYE2025 – FYE 2029) for Rate Option C
8.4 City of Trinidad’s capital improvement plan
8.5 Water treatment facility replacement plan
- Projected five-year budget (FYE2025 – FYE 2029) for Rate Option A nse Expense Description 2023 2024 2025 2026 2027 2028 2029 ries & Benefits Employee Wages $ 227,210 260,000 $ 270,400 $ 281,216 $ 292,465 $ 304,163 $ 316 ries & Benefits Fringe Benefits $ 4,954 1,584 $ 1,647 $ 1,713 $ 1,782 $ 1,853 $ 1 ries & Benefits Deferred Retirement $ 13,195 16,882 $ 17,557 $ 18,260 $ 18,990 $ 19,750 $ 20 ries & Benefits Medical Insurance & Expense $ 22,398 31,005 $ 32,246 $ 33,535 $ 34,877 $ 36,272 $ 37 ries & Benefits Health Insurance Deductible Benefit $ 209 1,356 $ 1,410 $ 1,467 $ 1,525 $ 1,586 $ 1 ries & Benefits Worker's Compensation $ 9,925 8,648 $ 8,994 $ 9,354 $ 9,728 $ 10,117 $ 10 ries & Benefits Employee Mileage Reimbursement $ 193 0 $ - $ - $ - $ - $ ries & Benefits Payroll Tax $ 18,281 21,195 $ 22,043 $ 22,925 $ 23,841 $ 24,795 $ 25 ries & Benefits Grant Payroll Alllocation $ (33,286) 0 $ - $ - $ - $ - $ rance Crime, Cyber, & Pollution Insurance $ 319 600 $ 624 $ 649 $ 675 $ 702 $ rance General Liability Insurance $ 9,756 10,632 $ 11,057 $ 11,500 $ 11,960 $ 12,438 $ 12 rance Propery & Casualty Insurance $ 2,470 3,000 $ 3,120 $ 3,245 $ 3,375 $ 3,510 $ 3 er Departments City Attorney - Admin Tasks $ 140 500 $ 520 $ 541 $ 562 $ 585 $ er Departments City Engineer - Admin Tasks $ 4,086 3,500 $ 3,640 $ 3,786 $ 3,937 $ 4,095 $ 4 ial Services Engineer Special Projects $ 2,132 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 er Departments City Planner - Admin Tasks $ 1,396 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 ial Services Accountant $ 10,006 10,000 $ 10,400 $ 10,816 $ 11,249 $ 11,699 $ 12 ial Services Auditor $ 9,660 10,000 $ 10,400 $ 10,816 $ 11,249 $ 11,699 $ 12 ellaneous Bad Debts $ - 100 $ 104 $ 108 $ 112 $ 117 $
ial Services Tech Support/Financial Advisor $ 1,755 2,500 $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3 M Utilities $ 22,274 23,000 $ 23,920 $ 24,877 $ 25,872 $ 26,907 $ 27 ellaneous Dues & Memberships $ 872 950 $ 988 $ 1,028 $ 1,069 $ 1,111 $ 1 ellaneous Municipal Expense $ 240 250 $ 260 $ 270 $ 281 $ 292 $ ellaneous Office Supplies & Expense $ 3,345 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 ellaneous Bank Charges $ 212 100 $ 104 $ 108 $ 112 $ 117 $ ellaneous Training/Education $ 1,083 500 $ 520 $ 541 $ 562 $ 585 $ racted Services Contracted Services $ 389,465 60,000 $ 140,000 $ 100,000 $ 60,000 $ 47,500 $ 35 ellaneous Misc Expenses $ 315 0 $ - $ - $ - $ - $
M Telephone $ 7,886 1,800 $ 1,872 $ 1,947 $ 2,025 $ 2,106 $ 2 M Cable & Internet Services $ 743 750 $ 780 $ 811 $ 844 $ 877 $ M Licenses & Fees $ 4,517 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 M Vehicle Fuel and Oil $ 2,671 5,800 $ 6,032 $ 6,273 $ 6,524 $ 6,785 $ 7 M Vehicle Repairs $ 2,007 2,500 $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3 M Building Repairs and Maintenance $ 65 2,500 $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3 M Security System $ 351 500 $ 520 $ 541 $ 562 $ 585 $
M Materials, Supplies, and Equipment $ 3,159 3,500 $ 3,640 $ 3,786 $ 3,937 $ 4,095 $ 4 M Equipment Repairs & Maintenance $ 15,553 7,500 $ 7,800 $ 8,112 $ 8,436 $ 8,774 $ 9 M Water Lab Fees $ 7,170 7,500 $ 7,800 $ 8,112 $ 8,436 $ 8,774 $ 9 M Water Plant Chemical $ 8,975 9,000 $ 9,360 $ 9,734 $ 10,124 $ 10,529 $ 10 M Water Line Hook-Ups $ - 0 $ - $ - $ - $ - $
M Water Line Repair $ 15,256 25,000 $ 26,000 $ 27,040 $ 28,122 $ 29,246 $ 30 M Water Plant Repair $ - 12,000 $ 12,480 $ 12,979 $ 13,498 $ 14,038 $ 14 M Reserve Operating Reserve Funding 0 $ 16,621 $ 16,621 $ 16,621 $ 16,621 $ 16 rgency Reserve Emergency Reserve Funding $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1 t Reserve Debt Reserve Funding $ - $ - $ - $ - $
tal Reserves Replacement of Existing Capital Assets $ 152,264 $ 137,185 $ 131,326 $ 128,420 $ 127 tal Reserves Replacement of Funded Project Assets $ - $ - $ - $ - $ tal Reserves Reserves for Additional Capital Assets $ (0) $ - $ - $ - $ t Service Charge Debt Service $ - $ - $ - $ - $
- Projected five-year budget (FYE2025 – FYE 2029) for Rate Option B nse Expense Description 2023 2024 2025 2026 2027 2028 2029 ries & Benefits Employee Wages $ 227,210 207,967 $ 216,286 $ 224,937 $ 233,935 $ 243,292 $ 253 ries & Benefits Fringe Benefits $ 4,954 1,584 $ 1,647 $ 1,713 $ 1,782 $ 1,853 $ 1 ries & Benefits Deferred Retirement $ 13,195 16,757 $ 17,427 $ 18,124 $ 18,849 $ 19,603 $ 20 ries & Benefits Medical Insurance & Expense $ 22,398 31,005 $ 32,246 $ 33,535 $ 34,877 $ 36,272 $ 37 ries & Benefits Health Insurance Deductible Benefit $ 209 1,356 $ 1,410 $ 1,467 $ 1,525 $ 1,586 $ 1 ries & Benefits Worker's Compensation $ 9,925 6,913 $ 7,189 $ 7,477 $ 7,776 $ 8,087 $ 8 ries & Benefits Employee Mileage Reimbursement $ 193 0 $ - $ - $ - $ - $ ries & Benefits Payroll Tax $ 18,281 17,191 $ 17,879 $ 18,594 $ 19,338 $ 20,111 $ 20 ries & Benefits Grant Payroll Alllocation $ (33,286) -38,000 $ (39,520) $ (41,101) $ (42,745) $ (44,455) $ (46 rance Crime, Cyber, & Pollution Insurance $ 319 600 $ 624 $ 649 $ 675 $ 702 $ rance General Liability Insurance $ 9,756 10,632 $ 11,057 $ 11,500 $ 11,960 $ 12,438 $ 12 rance Propery & Casualty Insurance $ 2,470 3,000 $ 3,120 $ 3,245 $ 3,375 $ 3,510 $ 3 er Departments City Attorney - Admin Tasks $ 140 500 $ 520 $ 541 $ 562 $ 585 $ er Departments City Engineer - Admin Tasks $ 4,086 3,500 $ 3,640 $ 3,786 $ 3,937 $ 4,095 $ 4 ial Services Engineer Special Projects $ 2,132 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 er Departments City Planner - Admin Tasks $ 1,396 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 ial Services Accountant $ 10,006 10,000 $ 10,400 $ 10,816 $ 11,249 $ 11,699 $ 12 ial Services Auditor $ 9,660 10,000 $ 10,400 $ 10,816 $ 11,249 $ 11,699 $ 12 ellaneous Bad Debts $ - 100 $ 104 $ 108 $ 112 $ 117 $
ial Services Tech Support/Financial Advisor $ 1,755 2,500 $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3 M Utilities $ 22,274 23,000 $ 23,920 $ 24,877 $ 25,872 $ 26,907 $ 27 ellaneous Dues & Memberships $ 872 950 $ 988 $ 1,028 $ 1,069 $ 1,111 $ 1 ellaneous Municipal Expense $ 240 250 $ 260 $ 270 $ 281 $ 292 $ ellaneous Office Supplies & Expense $ 3,345 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 ellaneous Bank Charges $ 212 100 $ 104 $ 108 $ 112 $ 117 $ ellaneous Training/Education $ 1,083 500 $ 520 $ 541 $ 562 $ 585 $ racted Services Contracted Services $ 389,465 60,000 $ 140,000 $ 100,000 $ 60,000 $ 47,500 $ 35 ellaneous Misc Expenses $ 315 0 $ - $ - $ - $ - $
M Telephone $ 7,886 1,800 $ 1,872 $ 1,947 $ 2,025 $ 2,106 $ 2 M Cable & Internet Services $ 743 750 $ 780 $ 811 $ 844 $ 877 $ M Licenses & Fees $ 4,517 5,000 $ 5,200 $ 5,408 $ 5,624 $ 5,849 $ 6 M Vehicle Fuel and Oil $ 2,671 5,800 $ 6,032 $ 6,273 $ 6,524 $ 6,785 $ 7 M Vehicle Repairs $ 2,007 2,500 $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3 M Building Repairs and Maintenance $ 65 2,500 $ 2,600 $ 2,704 $ 2,812 $ 2,925 $ 3 M Security System $ 351 500 $ 520 $ 541 $ 562 $ 585 $
M Materials, Supplies, and Equipment $ 3,159 3,500 $ 3,640 $ 3,786 $ 3,937 $ 4,095 $ 4 M Equipment Repairs & Maintenance $ 15,553 7,500 $ 7,800 $ 8,112 $ 8,436 $ 8,774 $ 9 M Water Lab Fees $ 7,170 7,500 $ 7,800 $ 8,112 $ 8,436 $ 8,774 $ 9 M Water Plant Chemical $ 8,975 9,000 $ 9,360 $ 9,734 $ 10,124 $ 10,529 $ 10 M Water Line Hook-Ups $ - 0 $ - $ - $ - $ - $
M Water Line Repair $ 15,256 25,000 $ 26,000 $ 27,040 $ 28,122 $ 29,246 $ 30 M Water Plant Repair $ - 3,000 $ 3,120 $ 3,245 $ 3,375 $ 3,510 $ 3 M Reserve Operating Reserve Funding $ 13,894 $ 13,894 $ 13,894 $ 13,894 $ 13 rgency Reserve Emergency Reserve Funding $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1 Reserve Debt Reserve Funding $ - $ - $ - $ - $
tal Reserves Replacement of Existing Capital Assets $ 152,264 $ 137,185 $ 131,326 $ 128,420 $ 127 tal Reserves Replacement of Funded Project Assets $ - $ - $ - $ - $ tal Reserves Reserves for Additional Capital Assets $ (0) $ - $ - $ - $ Service Charge Debt Service $ - $ - $ - $ - $
- Projected five-year budget (FYE2025 – FYE 2029) for Rate Option C nse Expense Description 2023 2024 2025 2026 2027 2028 2029 ries & Benefits Employee Wages $ 227,210 260,000 270,400 281,216 292,465 304,163 316 ries & Benefits Fringe Benefits $ 4,954 1,584 1,647 1,713 1,782 1,853 1 ries & Benefits Deferred Retirement $ 13,195 16,882 17,557 18,260 18,990 19,750 20 ries & Benefits Medical Insurance & Expense $ 22,398 31,005 32,246 33,535 34,877 36,272 37 ries & Benefits Health Insurance Deductible Benefit $ 209 1,356 1,410 1,467 1,525 1,586 1 ries & Benefits Worker's Compensation $ 9,925 8,648 8,994 9,354 9,728 10,117 10 ries & Benefits Employee Mileage Reimbursement $ 193 0 0 0 0 0 ries & Benefits Payroll Tax $ 18,281 21,195 22,043 22,925 23,841 24,795 25 ries & Benefits Grant Payroll Alllocation $ (33,286) 0 0 0 0 0 rance Crime, Cyber, & Pollution Insurance $ 319 600 624 649 675 702 rance General Liability Insurance $ 9,756 10,632 11,057 11,500 11,960 12,438 12 rance Propery & Casualty Insurance $ 2,470 3,000 3,120 3,245 3,375 3,510 3 er Departments City Attorney - Admin Tasks $ 140 500 520 541 562 585 er Departments City Engineer - Admin Tasks $ 4,086 3,500 3,640 3,786 3,937 4,095 4 ial Services Engineer Special Projects $ 2,132 5,000 5,200 5,408 5,624 5,849 6 er Departments City Planner - Admin Tasks $ 1,396 5,000 5,200 5,408 5,624 5,849 6 ial Services Accountant $ 10,006 10,000 10,400 10,816 11,249 11,699 12 ial Services Auditor $ 9,660 10,000 10,400 10,816 11,249 11,699 12 ellaneous Bad Debts $ - 100 104 108 112 117
ial Services Tech Support/Financial Advisor $ 1,755 2,500 2,600 2,704 2,812 2,925 3 M Utilities $ 22,274 23,000 23,920 24,877 25,872 26,907 27 ellaneous Dues & Memberships $ 872 950 988 1,028 1,069 1,111 1 ellaneous Municipal Expense $ 240 250 260 270 281 292
ellaneous Office Supplies & Expense $ 3,345 5,000 5,200 5,408 5,624 5,849 6 ellaneous Bank Charges $ 212 100 104 108 112 117
ellaneous Training/Education $ 1,083 500 520 541 562 585 racted Services Contracted Services $ 389,465 60,000 140,000 25,958 26,997 28,077 29 ellaneous Misc Expenses $ 315 0 0 0 0 0
M Telephone $ 7,886 1,800 1,872 1,947 2,025 2,106 2
M Cable & Internet Services $ 743 750 780 811 844 877
M Licenses & Fees $ 4,517 5,000 5,200 5,408 5,624 5,849 6 M Vehicle Fuel and Oil $ 2,671 5,800 6,032 6,273 6,524 6,785 7 M Vehicle Repairs $ 2,007 2,500 2,600 2,704 2,812 2,925 3 M Building Repairs and Maintenance $ 65 2,500 2,600 2,704 2,812 2,925 3 M Security System $ 351 500 520 541 562 585
M Materials, Supplies, and Equipment $ 3,159 3,500 3,640 3,786 3,937 4,095 4 M Equipment Repairs & Maintenance $ 15,553 7,500 7,800 8,112 8,436 8,774 9 M Water Lab Fees $ 7,170 7,500 7,800 8,112 8,436 8,774 9 M Water Plant Chemical $ 8,975 9,000 9,360 9,734 10,124 10,529 10 M Water Line Hook-Ups $ - 0 0 0 0 0
M Water Line Repair $ 15,256 25,000 26,000 27,040 28,122 29,246 30 M Water Plant Repair $ - 12,000 12,480 12,979 13,498 14,038 14 M Reserve Operating Reserve Funding 0 15,617 15,617 15,617 15,617 15 rgency Reserve Emergency Reserve Funding 1,000 1,000 1,000 1,000 1 Reserve Debt Reserve Funding $ - $ - $ - $ - $
tal Reserves Replacement of Existing Capital Assets $ 152,264 $ 137,185 $ 131,326 $ 128,420 $ 127 tal Reserves Replacement of Funded Project Assets $ - $ - $ - $ - $ tal Reserves Reserves for Additional Capital Assets $ (0) $ - $ - $ - $ Service Charge Debt Service $ - $ - $ - $ - $
– City of Trinidad’s capital improvement plan
Capital Replacement Program AWWA Cash-Needs Approach
City of Trinidad Date
System Numbe
Service Connections
ity 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
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% 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% - Wet Well Pump (approx 175 gpm each) 2014 $7,000 C 100% $0 35 10 0 25 25 0 100% 0% 0% 1 Creek Flow meter 2017 $8,000 C 100% $6,234 15 7 8,000 8 8 10,949 100% 0% 0%
1 Source Meter 1980 $8,000 C 100% $1,668 15 44 8,000 -29 5 9,733 100% 0% 0% - Westhaven Treatment Plant (60-120gpm) 2016 $2,136,000 H 100% $0 60 8 0 52 25 0 100% 0% 0% 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% - *Flocculator 2016 $0 C 100% $0 15 8 0 7 7 0 100% 0% 0% -
*Polymer Feed 2016 $0
C 100%
$0 15 8 0 7 7 0
100% 0% 0%
- *Mixed Media filters 2016 $0 C 100% $0 15 8 0 7 7 0 100% 0% 0% - *Chlorine Feed 2016 $0 C 100% $0 15 8 0 7 7 0 100% 0% 0% - *Chlorine contact Pipe 2016 $0 C 100% $0 60 8 0 52 52 0 100% 0% 0% - *Backwash tank (20,000 gallons) 2016 $0 C 100% $0 60 8 0 52 52 0 100% 0% 0% - Turbidity Monitoring 2013 $120,155 H 100% $0 15 11 0 4 5 0 100% 0% 0% - 2013 Water Plant Upgrade 2013 $231,720 H 100% $0 60 11 0 49 50 0 100% 0% 0% 1 Raw Water Turbidimeter 1980 $3,430
c 100%
$715 15 44 3,430 -29 1 3,567
100% 0% 0%
1 Finished Water Turbidimeter 2023 $3,430 c 100% $3,310 15 1 3,430 14 15 6,177 100% 0% 0% 1 Filter #1 Turbidmeter 2013 $3,430 c 100% $2,318 15 11 3,430 4 1 3,567 100% 0% 0% 1 Filter #2 Turbidmeter 2013 $3,430 c 100% $2,318 15 11 3,430 4 1 3,567 100% 0% 0% 1 Filter #3 Turbidmeter 2013 $3,430
c 100%
$2,318 15 11 3,430 4 1 3,567
100% 0% 0%
1 SCM 2013 $13,000
c 100%
$8,785 15 11 13,000 4 2 14,061
100% 0% 0%
1 CL17 - Cl2 residual 2013 $3,325 c 100% $2,247 15 11 3,325 4 15 5,988 100% 0% 0% - Flow Meter 2013 $0 c 100% $0 15 11 0 4 0 0 100% 0% 0% 1 Mid Turbidmeter 2013 $3,430 c 100% $2,318 15 11 3,430 4 1 3,567 100% 0% 0%
1 Rinse to Waste 2013 $5,000 c 100% $3,379 15 11 5,000 4 1 5,200 100% 0% 0% 1 Poly Pump #1 2013 $1,000 c 100% $676 15 11 1,000 4 2 1,082 100% 0% 0% 1 Poly Pump #2 2013 $1,000 c 100% $676 15 11 1,000 4 2 1,082 100% 0% 0% 1 CL2 Pump 2013 $1,000 c 100% $676 15 11 1,000 4 2 1,082 100% 0% 0% 1 Wet Well Pump #1 2013 $5,000 c 100% $3,379 15 11 5,000 4 3 5,624 100% 0% 0% 1 Wet Well Pump #2 2013 $5,000 c 100% $3,379 15 11 5,000 4 3 5,624 100% 0% 0% 1 Flash Mixer #1 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 1 Flash Mixer #2 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 1 Backwash Pump 2013 $5,000 c 100% $3,379 15 11 5,000 4 4 5,849 100% 0% 0% 1 Intermediate Pump #1 - Booster Pump 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 1 Intermediate Pump #2 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 1 Soda Ash Pump 2013 $1,000 c 100% $676 15 11 1,000 4 3 1,125 100% 0% 0% 1 Recycle Pump 2013 $5,000 c 100% $3,379 15 11 5,000 4 1 5,200 100% 0% 0% 1 CL2 Residual 2013 $3,500 c 100% $2,365 15 11 3,500 4 5 4,258 100% 0% 0% 1 Sludge Removal 2013 $5,000 c 100% $3,379 15 11 5,000 4 5 6,083 100% 0% 0% 1 Level Transducers 2013 $9,500 c 100% $6,420 15 11 9,500 4 6 12,021 100% 0% 0% 1 Tank Floats - Kill Switch 2013 $750 c 100% $507 15 11 750 4 6 949 100% 0% 0% 1 SC-100 - Controller 2013 $3,505 c 100% $2,369 15 11 3,505 4 1 3,645 100% 0% 0% 1 SC-200 (2) - Controller 2013 $7,010 c 100% $4,737 15 11 7,010 4 1 7,290 100% 0% 0% - Remaining Turbidity Equipment 2013 $103,005 c 100% $0 15 11 0 4 4 0 100% 0% 0% - Remaining Treatment Plant Equipment 2013 $109,700 c 100% $0 60 11 0 49 49 0 100% 0% 0% 50,000 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% - 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% 191 2" Pipe (half) 1980 $75 C 100% $2,987 50 44 14,325 6 5 17,429 100% 0% 0% 691 3" Pipe (half) 1980 $75 C 100% $10,800 50 44 51,788 6 5 63,007 100% 0% 0% 4,232 4" Pipe (half) 1980 $250 C 100% $220,616 40 44 1,057,875 -4 5 1,287,067 5% 85% 10% 6,474 6" Pipe (half) 1980 $250 C 100% $337,506 40 44 1,618,375 -4 10 2,395,590 5% 85% 10% 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% 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% 191 2" Pipe (half) 1980 $75 C 100% $2,987 40 44 14,325 -4 20 31,388 100% 0% 0% 691 3" Pipe (half) 1980 $75 C 100% $10,800 40 44 51,788 -4 20 113,473 25% 75% 0% 4,232 4" Pipe (half) 1980 $250 C 100% $220,616 40 44 1,057,875 -4 20 2,317,934 5% 85% 10% 6,474 6" Pipe (half) 1980 $250 C 100% $337,506 40 44 1,618,375 -4 25 4,314,323 5% 85% 10% 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% 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% 1 2" Valves (half) 1980 $3,000 C 100% $626 40 44 3,000 -4 5 3,650 5% 85% 10% 2 3" Valves (half) 1980 $3,000 C 100% $938 40 44 4,500 -4 5 5,475 5% 85% 10% 6 4" Valves (half) 1980 $4,000 C 100% $5,005 40 44 24,000 -4 5 29,200 5% 85% 10% 13 6" Valves (half) 1980 $4,000 C 100% $10,844 40 44 52,000 -4 10 76,973 5% 85% 10% 10 8" Valves (half) 1980 $6,200 C 100% $12,283 40 44 58,900 -4 15 106,076 5% 85% 10% 4 10" Valves (half) 1980 $6,200 C 100% $4,525 40 44 21,700 -4 15 39,080 5% 85% 10% 1 2" Valves (half) 1980 $3,000 C 100% $626 40 44 3,000 -4 20 6,573 5% 85% 10% 2 3" Valves (half) 1980 $3,000 C 100% $938 40 44 4,500 -4 20 9,860 5% 85% 10% 6 4" Valves (half) 1980 $4,000 C 100% $5,005 40 44 24,000 -4 20 52,587 5% 85% 10% 13 6" Valves (half) 1980 $4,000 C 100% $10,844 40 44 52,000 -4 25 138,623 5% 85% 10% 10 8" Valves (half) 1980 $6,200 C 100% $12,283 40 44 58,900 -4 25 157,018 5% 85% 10% 4 10" Valves (half) 1980 $6,200 C 100% $4,525 40 44 21,700 -4 25 57,849 5% 85% 10% 27 Hydrants 1980 $7,035 C 100% $39,612 60 44 189,945 16 16 355,763 25% 75% 0% 222 Inside Meters 1980 $500 C 100% $23,149 15 44 111,000 -29 5 135,048 25% 75% 0% 101 Outside Meters 1980 $500 C 100% $10,532 15 44 50,500 -29 5 61,441 25% 75% 0% 100% 0% 0% 100%
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 20 Raw Water Turbidimeter AT1001A No longer in
production Fair Influent NTU High 1 Out of date $
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
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 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 Poly Pump #2 XA1011 Unknown Unknown Poly Dose Low 3 Unknown CL2 Pump XA1013 Unknown Unknown CL2 Dose High 1 Unknown Wet Well Pump #1 EQ-100 Unknown Unknown Influent Pump High 1 Unknown Wet Well Pump #2 EQ-110 Unknown Unknown Influent Pump High 1 Unknown Flash Mixer #1 EQ-200-1 2015 Fair Poly Mixer Medium 2 Unknown Flash Mixer #2 EQ-200-2 2015 Fair Poly Mixer Medium 2 Unknown Backwash Pump EQ-200-3 Unknown Unknown Backwash Pump High 1 Unknown Intermediate Pump #1 EQ-400 2015 Fair Booster Pump High 1 Unknown Intermediate Pump #2 EQ-410 2015 Fair Booster Pump High 1 Unknown Soda Ash Pump EQ-450 Unknown Fair Soda Pump Medium 2 Unknown 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 Sludge Removal EQ-150 Unknown Good Sludge Removal Low 3 Unknown Level Transducers Unknown Unknown Water Levels High 1 Total of 5 Tank Floats Unknown Unknown Kill Switch High 1 Total of 5 SC-100 Out dated poor controller High 1 No parts $3,505 SC-200 (2) Out dated fair controller High 1 No parts
Totals $10,260 $20,290
DISCUSSION AGENDA ITEM 2
SUPPORTING DOCUMENTATION ATTACHED
2. Speed Humps update for Ocean and View Streets/Consider options.
AGENDA ITEM: Speed Humps update for Ocean and View
Streets/Consider Op@ons
Date: September 24, 2024 _______________________________________________________________________ ANALYSIS:
Ka, Breckenridge and Jack West were able to gather signatures from most of the residences on Ocean and View streets. The HSIP Project designed by GHD and being constructed by RAO Construc,on will be able to cover the cost of the materials and construc,on of the speed humps. Two speed humps are planned for each street, each about a quarter of the way from the end of each street.
Although the Council had discussed asphalt speed humps, rubberized speed humps will also be compared at this mee,ng as to cost, func,onality, pros and cons. One feature of the rubberized speed humps is that they are removable and can be relocated on the same street or on another street. Josh Wolf of GHD will aSend the Council mee,ng and will present addi,onal details on the features and cost of each op,on.
ACTION:
The City Council will give further direc,on to staff on which op,on is preferred.
Ocean Avenue & View Avenue Speed Humps
City of Trinidad
City Council Meeting
September 24, 2024
Josh Wolf, PE
GHD
Speed Bumps, Humps, & Tables
City of Trinidad l GHD
• Speed bumps are suitable for
very low speeds (<15 mph)
• Speed humps have a design
speed of 15 to 20 mph
• Speed tables have a design
speed of 25 to 30 mph and are
much gentler for larger vehicles
Speed Bumps, Humps, & Tables
City of Trinidad l GHD
Speed Humps
Proposed for
Ocean and View
w/ 15MPH Speed
Limit
• Speed bumps are suitable for
very low speeds (<15 mph)
• Speed humps have a design
speed of 15 to 20 mph
• Speed tables have a design
speed of 20 to 30 mph and are
much gentler for larger vehicles
Speed humps are parabolic vertical traffic calming devices intended to slow traffic speeds on low volume, low speed roads.
Advantages
• Reduces speeds at/near the hump
• Traffic volumes may reduce as drivers avoid roads with speed humps
Disadvantages
• Can push traffic to adjacent street
• Noise levels increase at the bump due to rapid deceleration and noise of the vehicle going over the bump
• Longer emergency vehicle response time
Speed Humps
City of Trinidad l GHD
Ocean Ave & View Ave Speed Humps
Note: Locations shown are approximate and subject to change. City of Trinidad l GHD Speed Humps – Asphalt or Rubber?
City of Trinidad l GHD
Hot Mix Asphalt Modular Rubber
• Permeant installation (asphalt is integral with
road pavement) - costly to remove
• Requires lane/road closures to install (~4 hours)
• Thousands of installations worldwide
• Typically last 20 years (i.e. 20-year design life)
• Dimensions: 12’ wide x 3.5” tall
• Installed Cost: ~$6,600 each
Speed Humps – Hot Mix Asphalt
City of Trinidad l GHD
Speed Humps – Modular Rubber
City of Trinidad l GHD
• Permeant or temporary installation (bolted to road
pavement) – can be removed and reinstalled.
• Installed quickly requiring minimum disruption to traffic. • Made of recycled rubber & markings come pre-installed. • May be noisier compared to asphalt humps due to
modular construction and dissimilar materials.
• Fewer installations than asphalt humps so durability and longevity is unknown.
• Dimensions: 10.5’ wide x 3” tall
• Purchase Cost: $5,500 (installation extra or by City PW) Speed Humps – Asphalt or Rubber?
City of Trinidad l GHD
Hot Mix Asphalt Modular Rubber
DISCUSSION AGENDA ITEM 3
SUPPORTING DOCUMENTATION ATTACHED
3. Discussion/Decision to Appoint Two Councilmembers for a Tribal Consultation Governmentto-Government Consultation request from 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: September 24, 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 vegetation removal on the Axel Lindgren Memorial Trail (ALMT).
ACTION:
Appoint two Council Members to an Ad-Hoc Committee for a Government-to-Government Consultation with the Trinidad Rancheria.
ATTACHMENTS:
• RCAA (Redwood Community Action Agency) Cost Estimate for removing vegetation on the ALMT
RedwoodCommunityAction Agency
Cost Estimate for removing vegetation on the Axel Lindgren Memorial Trail
Brief Background: In the spring of 2024, the Tsurai Ancestral Society and The City of Trinidad contacted the Redwood Community Action Agency (RCAA) to discuss plans for clearing vegetation (brushing) an alignment to the Axel Lindgren Memorial Trail (ALMT). In a follow-up site visit, the project coordinator from RCAA and a field crew assistant traversed the proposed alignment trail from the existing ALMT, down 100 ft to the large boulder where a bridge may be placed, to access the beach.
Figure 1: The blue line represents the current Axel Lindgren Memorial Trail. The red line represents a temporary alignment trail RCAA has been asked to brush for temporary public access.
Scope of Work: The RCAA restoration field crew will brush approximately 80 – 100 ft length and four ft width of trail using chainsaws and loppers. Two 1 x 8 ft long wooden planks shall be placed over a small stream during the work to minimize damage to f the channel. The restoration field crew will place all trimmed vegetation on the existing ALMT below the alignment trail to block and deter public access to and from the beach.
Cost Estimate:
Staff Hours Rate Total
project coordinator 8 $65 $520
Site Lead 20 $52 $1,040
Crew member 20 $50 $1,000
Crew member 20 $50 $1,000
Crew member 20 $50 $1,000
Truck mileage
46 miles x 3
days $0.63 $86.94
Misc supplies 1 x 8 ft planks $1.69 x 16' $27.50
Total $4,674.44
This estimate is based on 2.5 days of work for a four-person crew. The actual time it takes to brush the alignment trail may take less than the estimate. We can adjust the number of people on the crew and/or the number of days worked to fit your budget/needs.
Please let me know if you have any questions or concerns. Thank you for thinking of us! Best,
Thomas Herman
RCAA NRS Project Coordinator
DISCUSSION AGENDA ITEM 4
SUPPORTING DOCUMENTATION ATTACHED
4. Update on Argument in Favor of Measure L Unanimously Approved by the City Council in August.
DISCUSSION AGENDA ITEM
Date: Tuesday, September 24, 2024
Item: Update on Argument in Favor of Measure L Unanimously Approved by the City Council in August.
Summary: On Tuesday, August 13, the City Council voted 4-0 in support of an Argument in Favor of Measure L (Continuation of the .75% Trinidad Sales Tax for four more years). The deadline to file the argument with County Elections was 5pm, Monday, August 19.
The City Clerk has been on record every month since January providing the Council with detailed calendar updates and upcoming deadlines for the purpose election transparency, but also as an aide to Staff keeping things on track.
On Monday, August 19, afterhours, the City Clerk realized that a prior email send attempted on Friday the 16th had not been replied to with confirmation from County Elections. Staff was unable to locate a sent message with a time stamp. A follow up email was sent immediately at 8:52pm.
On Tuesday the 20th County Elections responded, stating they did not receive the submission prior to 5pm on the 19th, therefore it would not be accepted.
Due to a combination of workload demands and technical issues with Microsoft, Staff failed to meet the deadline, meaning the Argument in Favor as approved by the Council on August 13 will not be included in the Voter Information Guide. There was no Argument Against Measure L submitted.
In lieu of missing the deadline, Staff recommends a direct mailer along with website support of a slightly edited version of the Argument that removes any advocacy that would render Staff unable to devote city resources to the cause. City Attorney Russ Gans office revised and endorsed the attached letter.
Proposed action: Motion to approve the revised Argument In Favor of Measure L and dedicate staff time to direct mail registered voters and publish on the City website.
Attachments: Revised Argument In Favor of Measure L
Cau$on: This email was sent from an EXTERNAL source. Please take care when clicking links or opening a=achments.
Outlook
RE: Argument in Favor of Measure L
From Goldbach, Nicole <[email protected]>
Date Tue 8/20/2024 9:28 AM
To Cityclerk Trinidad <[email protected]>
Hey Gabe,
Your argument is received however, the deadline was set at 5 p.m. of yesterday so we will not be able to accept this to print for our voter informaGon guide. If you have proof of an a=empted send prior to the deadline I can accept your argument but otherwise your submission is date stamped at 8:52 p.m. on the 19th.
Sorry for the bad news,
Nicole
Nicole Goldbach (She/Her)
ElecGons Manager
Humboldt County Office of ElecGons
Office: 707-445-7481
Direct: 707-599-3683
From: Cityclerk Trinidad <[email protected]>
Sent: Monday, August 19, 2024 8:52 PM
To: Goldbach, Nicole <[email protected]>
Cc: Cityclerk Trinidad <[email protected]>
Subject: Argument in Favor of Measure L
Hi Nicole,
The City Council approved the attached argument in Favor of Measure L Tuesday night.
I just noticed I didn't get a reply/confirmation from the first attempt I made to send it Friday, so I checked my sent mail and I didn't find it in my sent email. Our MS Exchange system was choppy last week. Hope it's ok to receive still on the 19th.
There is no argument against, and I don't anticipate any rebuttals.
Let me know if you have any questions.
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Thanks again.
Gabriel Adams
Trinidad City Clerk
409 Trinity Street
P.O. Box 390
Trinidad, CA 95570
707.677.0223
https://trinidad.ca.gov
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What is Measure L and Why is it on the Ballot?
Measure L seeks to continue the City of Trinidad’s existing 0.75% local sales tax Why? This tax has been used to improve and maintain the quality of services and infrastructure in our community since 2004, with a significant portion coming from tourism spending at the City.
After the COVID-19 pandemic tourism slowdown in 2020, visits overall in California increased by 52% with an additional 4.6 million tourists forecasted to visit the State in 2024. This means that Trinidad is likely to see growth in the number of visits over the coming years along with an increase in tourism dollars spent in the City.
Each time one of these visitors purchases gas, a restaurant meal, or non-food items from the grocery store or gift shop – they are contributing to the City’s budget for essential services like law enforcement, trash clean-up, animal control services, and road and trail maintenance upon payment of the City’s 0.75% local sales tax.
Although the City welcomes tourists, the City also recognizes that large numbers of tourists can result in additional wear on roads and trails and increase the need for public safety services and recreational facilities maintenance.
The current 0.75% local sales tax provides approximately 22%, or around $200,000 of the City’s estimated $900,000 budget. The Humboldt Taxpayers League supports Measure L to generate local revenue.
A vote in favor of Measure L will continue this sales tax, providing the City revenue to supplement service delivery costs. If Measure L is approved, the tax will continue through March 31, 2029.What does Measure L cost? Measure L is not a tax on property or a tax on prescription medication or food purchased as groceries. Measure L is a sales tax on the purchase of taxable goods at retail sales. For example, If $100 is spent on taxable goods, Measure L will generate $0.75 in City revenue. If $1,000 is spent on taxable goods, Measure L will Deleted: Argument in Favor of Measure L
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Deleted: Vote Yes for the continuation of
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Deleted: We’re glad to live in such a special place, and we welcome visitors, but
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Measure L because they see it as a responsible sales tax to supplement our small-town revenue.
Deleted: Keep our city financially healthy so that we can continue to provide necessary services. Renewing
Deleted: is one way to have others share in
Deleted: Join the Taxpayers League and others in
supporting Measure L and Vote Yes on November 5th!
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generate $7.50 in City revenue. All proceeds from the tax are remitted to the City with no portion being retained by the State.
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Deleted: /s/ Mayor Cheryl Kelly¶
Mayor Pro-Tem Jack West¶
Councilmember Steve Ladwig¶
Councilmember Kati Breckenridge¶