05-12-2026 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, MAY 12, 2026 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Kenny, Breckenridge, Tuttle, and Waskiewicz. City Staff in attendance: City Clerk/Interim City Manager Gabriel Adams, Special Project Manager Angela Cather, Administrative Assistant Anton Souza, and City Planner Trever Parker.
Approximately (6) participants were present by video-conference, and (12) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. ADJOURN TO CLOSED SESSION – No Closed Session
IV. APPROVAL OF THE AGENDA
Motion (Kenny/Waskiewicz) to approve the agenda as submitted. Passed 5-0.
V. APPROVAL OF MINUTES – 04/14/2026 cc
Motion (Waskiewicz/Breckenridge) to approve the minutes as written. Passed 4-0-1 (Tuttle was absent).
VI. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
Waskiewicz: Nothing to report.
Kenny: HCAOG was unable to meet due to lack of quorum. The Executive Director is resigning and recruitment will begin soon.
Breckenridge: Nothing to report.
Kelly: Invited to interview on the Jefferson Exchange, Jefferson Public Radio’s live talk show devoted to current events, and learn about cities in Southern Oregon and Northern California, which took place May 12, at 9:09am, was broadcast on air to an estimated 95,000 weekly listener cume.
VII. PUBLIC SAFETY REPORT – City Manager & Law Enforcement HCSO Lt. Kyle Holt was introduced by City Manager Adams noted the low call volume, and thanked the City’s public safety team (HCSO and Pacific Coast Security) for proactive service to this community. Lt. Holt summarized service calls for the month of April.
VIII.ITEMS FROM THE FLOOR.
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Patti Fleschner – Trinidad Museum & Civic Club
Annual Memorial Day ceremony will take place on Sunday, May 24 at 2pm. Thanked the Council for generous Tourist Occupancy Tax contribution to community groups. Museum highlights and accomplishment letter was sent in advance of this meeting to the Council. Museum would like to go forward with a time capsule to commemorate this 250-year anniversary of the US.
Richard Johnson – Trinidad area resident
More of a question than a comment. Minor changes are being made to Redwood Transit Authority service to Trinidad. It would help and improve service, but it will be different than what we’re used to. Councilmember Tuttle, the City’s representative to the Humboldt Transit Authority explained that the plan is for micro-transit, smaller bus, making 30-minute rounds to the Arcata Airport, with additional dial-a-ride service. Plan could be unveiled within the next 6-months.
Ashley Mazonti – Trinidad area resident
Kids go to Trinidad School, and a member of the School Education Foundation. Hope to be involved in the community to enrich our experience to help the school remain successful. 05-12-2026 City Council Meeting Minutes Page 2
IX. CONSENT AGENDA
1. Financial Statements – March 2026
2. Law Enforcement Report – April 2026.
3. Resolution 2026-03; Request November General Election Consolidation with the County of Humboldt.
4. Annual Distribution of Tourist Occupancy Tax Funds to Community Groups/Organizations.
5. Procurement of On-Call Planning Consultant Professional Services - Request for Qualifications.
Kenny: Is the timeline for Consent 5 realistic to receive sufficient interest from interested consultants? City Manager Adams recommended following the Caltrans guidelines and limitations and try to work within current contract expiration timeline. The process may uncover additional firms that may desire to work with us.
Public comment included:
Richard Johnson – Trinidad Coastal Land Trust
Read a statement from the Land Trust thanking the City for support and contribution used to improve and enrich ongoing Land Trust projects and priorities.
Ana Davis – Trinidad Chamber of Commerce
The Chamber was dependent on the City’s contribution last year. Scholarships, fundraisers, summer camps, events, and business support are all important roles of the Chamber, and this contribution helps keep these programs alive.
Motion (Kenny/Kelly) to approve the consent agenda as submitted. Passed unanimously.
Xl. DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Decision regarding Trinidad Drinking Water System Comparative Analysis Options.
City Manager Adams explained that on July 08, 2025, following extensive community discussion regarding the long-term sustainability, reliability, affordability, and governance of the City’s drinking water system, the Council directed staff to pursue a comparative analysis of potential future water supply strategies; Motion (Kelly/Breckenridge) to direct staff to proceed with a comparative analysis and feasibility study that evaluates the two options for water provisioning in the City of Trinidad: 1) connection to HBMWD in partnership with the Trinidad Rancheria or independently; 2) continuing to operate its own independent municipal water plant. The study should include comparative long-term costs, developmental (growth) impacts, environmental factors, regulatory/legal guidelines, technical/engineering and operational requirements. Staff will bring the RFP for the study back to the Council for final review and seek grant money to fund. Passed 3-2. Yes – Kelly, Breckenridge, Varela. No – Kenny, Tuttle.
Community feedback has consistently reflected two competing priorities; maintaining local ownership, operational control, and watershed stewardship of Trinidad’s municipal water system, while also addressing long-term affordability, regulatory compliance, staffing challenges, infrastructure reliability, and emergency resilience.
The questions raised at the July 08 meeting echoed similar concerns raised at the October 12, 2021 meeting when the City last questioned its water system reliability. The 2021 discussion was prompted by two primary driving forces; 1) the historic low Luffenholtz Creek flows experienced during 2019-2021 drought period, and 2) the Trinidad Rancheria’s request for additional water resources to support their economic development goals.
In July 2025, however, a new set of circumstances led to the revived discussion; 1) the City’s rapidly depleted $1.04 million dollar reserve due to high operating and certified operator costs leading to a $300,000 general fund bail-out to stabilize the Water Fund (see Resolution 2024-12), 2) the October 2024 implementation of the Water Rate Analysis that included a sharp rate increase followed by five years of consecutive 10% annual increases, and 3) an invitation from Humboldt Bay Municipal Water District to participate in feasibility discussions for the North Mainline Extension request initiated and underway by the Trinidad Rancheria.
The Council once again in July heard many similar arguments, this time mostly from residents from the greater Trinidad area (and beyond) fearful of uncontrolled growth, high water rates, lack of system control, adverse environmental impacts, mandatory district interconnection, and a desire to maintain a small system in a hyper- 05-12-2026 City Council Meeting Minutes Page 3
local watershed. Arguments in favor of exploring all the options available came from Trinidad residents and water system customers facing a 5-year rate structure that puts the City’s system at an affordability risk, and serious concerns about how the depleted reserve fund will affect the water system’s reliability into the future.
The complexity of the discussion led the City Council to carefully draft a motion directing staff to seek a professional, comprehensive comparative analysis in pursuit of the facts, and the expectation that the proposal return for their final review and potential grant funded options.
PROJECT TIMELINE AND IMPLEMENTATION CONSIDERATIONS
July 08, 2025: At that same July 08 City Council meeting, former City Manager Joe Tagliaboschi announced his unexpected resignation, effective at the end of August after his one-month planned vacation starting the following day on July 09.
September 2025: City Clerk/Interim City Manager positions were immediately consolidated. Trinidad-Westhaven Emergency Intertie Project faced significant design, administrative, construction, and deadline headwinds diverting staff attention away from other priorities.
October 14, 2025: Reduced staffing, competing projects and deadlines (Compensation Study, Town Hall Improvements, HSIP Crosswalk sign aesthetic issues, Intertie Project, etc.) prevented the comparative analysis from gaining any significant traction during the months following Tagliaboschi’s departure (September-December).
However, staff performed several tasks that resulted in documents that debuted in the October 14, 2025 Council meeting Staff Activity report (attached).
§ City Planner Trever Parker developed preliminary findings associated with the potential growth inducing impacts (concerns) from a connection to Humboldt Bay Municipal Water District. § City Grant Administrator Angela Cather summarized grant funding opportunities available to the City for the comparative analysis.
§ City Engineer Steve Allen reviewed several prior memos drafted by GHD over the last 20 years specifically comparing operation of the City’s water plant to an alternate source through HBMWD over the long-term. § Interim City Manager Gabriel Adams met with HBMWD GM Michiko Mares to help connect the dots, strategize next steps, and develop a realistic timeline with funding options.
November 13, 2025: North Mainline Extension project was unveiled at the Humboldt Bay Municipal Water District meeting. The Trinidad Rancheria announced an ambitious timeline to completing their project, starting with a soon-to-be-released, self-funded feasibility study. City staff anticipated the public release of their study, and felt that it may be cost effective to approach the Rancheria and request permission to engage with their consultant. The City was unable to reach the Rancheria and coordinate a G2G meeting before the holiday season. The City Manager, Mayor, and Mayor Pro-Tem ultimately determined that an independent analysis would serve the community’s interest more effectively (back to the drawing board).
RECENT WATER SYSTEM EVENTS & OPERATIONAL CHALLENGES
January 03, 2026: Scenic Drive water main break, complete and unprecedented 400,000-gallon storage drained in less than four hours, citywide boil water and turbidity exceedance notices issued, and the critical water shortage emergency that followed prevented any meaningful progress on the comparative analysis in January.
March/April, 2026: Recent emergency incidents and operational challenges highlighted both the strengths and limitations of maintaining a small independent water system, while also reinforcing the importance of evaluating long-term infrastructure, staffing, financial, and resiliency considerations through a comprehensive comparative 05-12-2026 City Council Meeting Minutes Page 4
analysis. Members of the public demanded reliability and express serious concern when they found out the water plant is not fully automated.
City staff began working on a 2025 Water Rate Implementation financial performance review. FYE2025 Audit is underway but the final report has not yet been released. The results of both reports will give the Council much needed information necessary to determining whether funding a comparative analysis independently is feasible.
April 04, 2026: An unprecedented four-day water service outage and boil water notice for approximately 30 customers on Westhaven Drive caused by a redwood tree that fell and took out all overhead utilities and water service. The incident further emphasizes the need for continued, significant investment in the City’s aging distribution system, but with the bittersweet reality that the water system has not been adequately funded by the 2024 rate increase to replenish operating or capital improvement reserves.
WATER SYSTEM / PLANT OBSERVATIONS
After eight months overseeing management of the water system, handling several unprecedented water emergencies, listening to demands for water reliability and management accountability from the business community, and witnessing first-hand how difficult it is not only to operate an aging system, but also to fund, train, and retain T3 and T2 certified staff, it’s clear that the City should address this issue with awareness and urgency.
The options below outline the City’s runway to implementing the July 08, 2025 decision to conduct a comparative analysis that will provide much of the data and information needed to make critical and informed decisions moving forward. Staff is looking for guidance from Council as to what method is preferred.
COMPARITIVE ANALYSIS OPTIONS
City Clerk/Interim City Manager Gabriel Adams and Special Project Manager Angela Cather met with a representative of the State Water Resources Control Board, Division of Financial Assistance (DFA) by videoconference on March 23, 2026 to explain what the City Council was looking for and seek guidance on available funding programs. After a thorough summary of the City’s water system, age, recent funding awards, improvements, and challenges, the State presented the following options:
OPTION 1: California State Water Resources Control Board’s, Technical Assistance (TA) Program Under this program, the State contracts with a third-party provider who can coordinate and develop engineering and environmental analysis. The TA provider (a non-profit organization, including universities, and other professional service providers) can and will contract with necessary professionals to complete analysis. The City may have some input when selecting the engineering firm and throughout the analysis. The results of the study will determine future DFA funding eligibility, which should be aligned with the alternative determined to be the most sustainable and cost-effective under the study criteria.
As per an email received on 3/6/26 from State Water, Division of Financial Assistance Sanitary Engineer, “DFA can only offer funding for design and construction of the most long-term solution/alternative presented in the feasibility plan. For example, if the plan indicates consolidation is the most long-term solution to the problem, DFA can only provide funding for that; and any other alternative will have to be self-funded by the City.” Funding: 100% grant/free money
Timeline: approximately 6 months after submitting a request to begin analysis. The analysis can take 9-18 months.
Application Status: Ready to submit.
Pros: A successful grant award will need the City to provide water system technical/operational information, financial, historical data to seed the study, and staff attendance in regular coordination meetings, but will not 05-12-2026 City Council Meeting Minutes Page 5
require the City to administer the grant. If GHD happens to be selected by the State, their effort assembling data would be more efficient and possibly more cost-effective for the City.
Any recent alternative that has been explored by the City, including the investment made in evaluating upper watershed storage retention concepts, will be considered in the assessment.
Cons: The Council has heard public comment suggesting the study be performed by a third-party. Because under this option the consultant selection and project management would be handled by the State, the City may have less influence over the study scope emphasis, assumptions, methodology, timeline adjustments, and consultant familiarity with local community values and priorities.
OPTION 2: California State Water Resources Control Board’s, Drinking Water State Revolving Fund (DWSRF) Program
Under this program, the City will submit a funding application which includes a General, Technical (with a scope of work and budget), Financial and Environmental Package. When awarded, the City will administer the grant and have full control over the process, including solicitation and selection of the consultant, following grant guidelines provided by the funder.
Funding: 100% grant/free money of the proposed scope. No match required.
Timeline: Expect to receive a funding agreement 9-12 months after a complete application is submitted.
Application Status: Draft scope received and in progress* Pros: The City has a lot of experience administering grants in-house. Handling grants in-house often results in grant payroll allocations that supplement wages of city staff by reimbursing for their time spent participating in the project. By comparison, if the grant is handled by the State in Option 1, then staff time consumed by feeding required information to the consultant would not be eligible for reimbursement, and instead being a cost to the City.
Assuming the grant guidelines are followed to solicit and award a contract to the selected consultant, the City may have more control over the pool of consultants considered.
Cons: A long-range project of this size and scope would become a significant priority for the Grant and Special Project Manager. The City would assume greater administrative responsibility and risks associated with procurement, grant compliance, and project management. Depending on consultant selection, project costs and timelines could fluxuate.
OPTION 3: Self-Funded
With this option, if feasible, the City may be able to expedite the timeline. However, based on preliminary estimates ranging between $80-100k to execute the Council’s July 08 motion, and based on the preliminary financial review of the October 2024 water rates, this option may not be feasible.
Pros: Greater local control over consultant selection, study design, assumptions, and project schedule. The City may also have more flexibility to tailor the scope specifically to community concerns and policy priorities.
Faster timeline
Cons: It is still unclear whether the water fund can afford this option. If so, there may not be any room for budget flexibility in response to unanticipated design or scope changes.
Council questions included:
Kenny: Pacific Watershed Associates have done work for the City to help determine Luffenholtz Creek water supply potential, correct? Option 1 and 2 seem like the only real options because we have not determined there are funds available yet in the Water Fund. Adams confirmed that PWA has researched the watershed potential, but also the upstream storage concept.
Kelly: We need to discuss water rates again, but without conclusive financial data yet Options 1 & 2 make the most sense. Spending $80-100k of General Funds for this project is not prudent. I’m ok with Option 1 reviewing 05-12-2026 City Council Meeting Minutes Page 6
all options available, including the upstream storage concept, and would be satisfied with the outcome and direction if the State studies and determines the best option to fund. Realistically, can staff handle another frontloaded in-house grant administration project? Adams explained that staff is experiencing water grant burn-out.
Many projects have been sidelined for months - if not years – while the water department has been a critical priority of the City. It will be nice to diversify staff attention to many back-burnered projects the community will benefit from.
Breckenridge: The skepticism of GHD being hired by the State to conduct the TA process does not bother me.
Tuttle: I support this path, and would like the City to have as much input as possible so we get the results we need.
Waskiewicz: Happy to see this on the agenda. The public wants to see action. Thanked the Mayor for prioritizing this discussion.
Kenny: Which option will require the most staff time? Adams explained that Option 2 is the biggest risk, since the City is completely responsible for all the front-end output – including hiring consultants, procuring grants, funding the studies, numerous Council agenda topics, etc. and trying to keep the momentum going. Option 1 will require in-house and consulting staff to feed the selected TA consultant data, documents, and resources, etc. to conduct the process.
Kenny: We would be wise to scale our ambitions for the study. To be clear, tonight we’re not deciding to connect to Humboldt Bay Water. The most important thing to look at are the financial implications. We already know we’re pushing our customers with current rate increases. If connecting to Humboldt Bay Water will cost more than that, enthusiasm for that scenario will dissipate. Why explore growth inducing impacts before understanding ratepayer costs? Presumably the Rancheria has already done the environmental analysis, but I have a hard time believing our rate payers will be satisfied paying more than what they’re expected to pay now.
Kelly: In order to answer those questions, we have to do the study. Financial and environmental implications are important, as well as the development concerns. Having a third party analyze everything will legitimize the results. Once the Council decides on an Option, we could consider prioritization of the questions we have for the study. I don’t think the community will be happy if we don’t conduct the complete analysis.
Public comment included:
Henry Cox – Trinidad
With respect to Option 1, what is the State’s record for funding what they recommend? Adams explained that WCSD went through this exact process, and they are now in construction under this program.
Dave Hankin – WCSD Board member
Complimented the staff report for this agenda topic. Our district has had a great experience with the technical assistance program. We struggled addressing water quality violations, and the regulators have been very helpful.
Construction is expected to conclude in September 2027. You should be clear when telling them what you want.
Growth impacts are the most important issue to me. The study should be parcel based – not regulation based.
The immediacy of Trinidad getting involved in the pipeline due to pipe sizing is not critical. Overall the TA process was a success for WCSD.
Patti Fleschner – Trinidad
Rapid growth fear seems unfounded since septic systems take up more space than buildings do, and also with the 95570 area being almost entirely in the coastal zone. It seems more equitable and generous to offer water to everyone, if we have access to it, and share it. As soon as our General Plan is revised, we’ll have more local control and say how development occurs. I don’t think rapid growth has been, is, or will be an issue.
Elaine Weinreb – Trinidad area resident
WCSD just received a big grant to redo its treatment system. 05-12-2026 City Council Meeting Minutes Page 7
Dick Bruce – Trinidad
You have a motion that was passed last July. You are asked to choose one of the options. Everything you want is in the motion. Information is important. Approve Option 1. The application is ready and there is no cost to the City. You’re asking a third party for an impartial analysis. The State will pay for it. I strongly support Option 1.
Jeff Bairey – Trinidad
I’ve concerned with turning this over to the State. If we don’t have money to pay for it ourselves, when will we? A year?... or two?
Tristan Cole – Trinidad
We’re having side conversations about potential impacts which is not on the agenda tonight. It’s naive to think that any one option selected will determine the outcome. I support a scientific, well-informed, impartial study.
Options 1 & 2, with 2 being a kick of the can down the road. Option 1 is realistic, and the one I’d prefer. There are many other things the community would like to see addressed, and giving this process to the State to free up staff would be great. Also, the City Planner has done a great job informing the Council with growth inducing impacts.
Anita Thompson – Trinidad
Thanked staff for the well-informed staff report. Support Option 1. I also don’t have a problem if GHD is selected to conduct the study. Even if staff wasn’t limited, a study of this size is a huge burden to implement. If the results of the TA conclude Humboldt Bay connection was most feasible, I’m concerned with the Council rejecting this informed decision that will impact future generations. I’m concerned about long-term water needs. Can the Council base their decisions on facts? I’m also concerned about a Councilmember’s bias against a connection. I hope Option 1 limits the City Council’s bias in future decision making on this important topic.
Steve Madrone – 5th District County Supervisor, Trinidad area resident I’m also in favor of Option 1. Getting answers is a great thing. We all have bias. I’ve lived on Luffenholtz Creek for 40 years. I helped the City get a 1.7 million dollar sediment reduction grant. To clarify some facts, a 6” pipeline is the minimum. The staff report says there won’t be rapid growth. There will be growth, but likely outside the City. Land use policy may help, but may make it easier to develop. Patty Stearns wrote a letter a few years ago saying a pipeline will double the area population. When you talk about an aging system, you’ll still have to deal with your distribution system, water tanks, and chlorination. Logic suggests this will increase your costs, but the study will help us find answers. Continue replacing your old lines. Support my plan for distributed water storage for fire safety and backup water when city water lines break. Marine terraces in the upper Luffenholtz Watershed holds approximately 1/3 of the Ruth Lake storage capacity. We already have the water, so tap the springs. With four tapped and an inline hydro system you can have all the water and power to run your plant.
Paula Levine – Trinidad
I support Option 1. Cost to the ratepayers will be looked at. In 2021, all Humboldt Bay customers had rates that were much less than Trinidad’s rates. I also support the fire resilience that a larger water source will provide the City. I submitted a letter for public comment.
Andrew Davis – Trinidad
I support understanding the financial feasibility first.
Carrie Varela – Former City Councilmember
I voted in support of the feasibility study in July 2025. I was concerned with losing the Rancheria as one of the City’s biggest customers. By losing that customer, annexation and growth would need to occur to gain more customers to support the system. There were many valid concerns made at the time. Working proactively and cooperatively with the Trinidad Rancheria is key to this process. I had a personal experience while living on Underwood Drive with a neighboring project proposal that would severely impact our view. I was very pleased with how the Planning Commission handled it, and had the greater good of the community in mind by limiting growth. I also had many sleepless nights leading up to the July 2025 discussion, but I echo Councilmember Tuttle’s desire to maintain local control of our water without sacrificing resiliency and sustainability. Cooperation with the Trinidad Rancheria is important. I have deep respect for their sovereignty. 05-12-2026 City Council Meeting Minutes Page 8
Motion (Tuttle/Breckenridge) to direct staff to pursue Option 1, submitting a Technical Assistance application to the State Water Resources Control Board to conduct a feasibility study as directed by the Council on July 08, 2025.
Further discussion:
Kenny: I’m not sure the TA process will be as helpful in addressing our public policy issues (growth) versus the water quality or quantity issues. I’d be willing to support this in a phased study approach, with the first thing being understanding the rates.
Tuttle: I’m looking for all or nothing. Kelly agreed, reconfirming the July 08, 2025 motion gave very clear direction as to what the City was looking for. In terms of process, there’s a motion and a second on the table.
Motion (Tuttle/Breckenridge) to direct staff to pursue Option 1, submitting a Technical Assistance application to the State Water Resources Control Board to conduct a feasibility study as directed by the Council on July 08, 2025. Passed unanimously.
2. Discussion/Decision to Approve the Second Amendment Contract with Humboldt County Sheriff to provide Law Enforcement Services to the City of Trinidad.
3. Discussion/Decision to Approve the Second Amendment Contract with Humboldt County Sheriff to Provide Animal Control and Shelter Services to the City of Trinidad.
City Manager Adams explained that discussion items 2 and 3 are combined, and that the agreements are second amendments to the 5-year agreement that began November 01, 2024. The agreement stipulates that each year the Sheriff will compute the upcoming fiscal year cost and notify the City by May for the services provided.
These contracts include Law Enforcement, Animal Control, and Animal Shelter Services. The second amendment to this agreement will result in a $5,911 increase from FY2026 for Sheriff services, and a slight increase of $429 for Animal Control Shelter and Services. The increase is calculated by the County using a population allocation method proportionate to the population base served for services rendered.
This agreement provides the same Sheriff’s Office and Animal Control Services support as the previous agreement. This will be funded in full with COPS grant funding. That revenue stream is expected to continue in FY2027.
- Second Amendment Sheriff’s Office Services $66,059.00 (10% increase) - Second Amendment Animal Control Services: $3,501.00 (6% increase) - Second Amendment Animal Shelter Services: $4,131.00 (6% increase) There were no public comments. Council expressed gratitude for the Sheriff’s service to the community.
Motion (Kenny/Tuttle) to Approve the Second Amendment to the Master Agreement with the Humboldt County Sheriff to Provide Law Enforcement, Animal Control, and Animal Shelter Services for the City of Trinidad for Fiscal Years 2025-2029, updating the fees for services for FY2027. Passed unanimously.
4. Discussion/Presentation regarding FY2025-2026 Budget Preparation.
City Manager Adams explained that on March 10 the Council conducted a mid-year review to examine assumptions and to adjust the budget if needed to capture unforeseen circumstances or needs in the organization. The second part of the discussion peeled back a layer and focused on the current year priorities, identified achievements, and discussed the overall health of the General Fund and Special Revenue Funds. The takeaway from the March 10 meeting was positive as forecast General Fund revenues were a bit ahead of estimates.
The health of the Water Fund is still under review. The City received a small grant award to have RCAC conduct a water rate performance review following the Rate Study that concluded in October 2024. Preliminary estimates indicate that the fund is falling short of expectations. The rate structure selected was not intended to fully replenish the fund, but rather only to “stop the bleeding”. The modest operating cash reserve forecasted into the 05-12-2026 City Council Meeting Minutes Page 9
rate structure adopted appears to be missing the mark by nearly 50% or more. Staff will dive deeper into the analysis with RCAC in the second half of May and return to the Council in June with more concrete details baked in to a final draft budget.
This meeting will provide information on the General Fund and reserves and how they are assigned, committed, or unrestricted, Special Revenue Funds, and our Water Enterprise Fund. The FY2025 Audit, has not yet been concluded, but staff expects it for review and approval in June.
The Council also agreed on a list of goals and objectives with the FY2026 budget. These items included:
• Invest in maintenance and upkeep of Town Hall, and recreation assets such as trails and parks. • Prioritize strategies to stabilize water funds and staff. Including in house T3/CPO. • Prioritize developing a classification and compensation plan, and updating the Employee Policy and Procedure Manual, which aligns staff responsibilities and wages with the needs of the City, encourage retention, and rewards advancement.
• Preparing for ongoing litigation to reach the trial before the end of FY2026, and set aside funding in advance. • Dedicate staff resources to bringing the Trinidad-Westhaven Emergency Intertie project to a conclusion.
Maintaining and enhancing the current service levels provided to the city, achieving compliance with state mandates, coordinating with other local and regional planning efforts to the best of our abilities, and maintaining public facilities and infrastructure are just of few of the underlying fundamentals incorporated into your budget planning process. Staff hopes to conclude the May discussion with some additional discretionary spending input from the Council that can be incorporated into the final draft. Some of those wish list items may include:
• A request from North Coast Children’s Services to provide backfill funding support if needed to keep Salmonberry Preschool solvent through the 2027 school year. • A request from the Friends of Trinidad Library to take on 100% of the additional Library hours (previously a 60/40 split), along with possible backfill funding with the County Library system facing budget cuts. • Investing in preliminary annexation analysis and prioritization, and pursuing additional consultant resources to gain traction on backlog of Planning Commission recommendations. • Phase II funding for Town Hall Improvements – Civic Club Room, Big Room interior paint, lighting, etc. • Tennis Court resurfacing.
• Preparation/Recognition of a potent el Nino winter season predicted.
STAFFING PLAN – CLASSIFICATION AND COMPENSATION – PHASE II On October 14, 2025, Council adopted the Classification and Compensation Study submitted by Regional Government Services (RGS). The study concluded with several findings and recommendations:
Compensation Findings
• Sufficient compensation data was found for three of the seven classifications. • None of the base pay salaries or total compensation for the City’s classifications are considered competitive with the market (+/- 5% of the median).
• Base pay and total compensation for the City’s positions ranged between 8%-28% below the market median.
Salary Recommendations
• Adjust salaries so the maximum top-step salary rate is within five percent of the market median. • If fiscal restraints exist, develop a phased-in approach that provides for annual or biannual increases over a multi-year time period until the salaries for all classifications are competitive with the market. • Memorialize the internal salary alignment structure as part of the City’s compensation policy to be used when conducting salary surveys or establishing new classifications.
In addition to adopting the 2025 Classification and Compensation Study, the Council approved a 10% across-theboard increase to seed the beginning of the recommended multi-year, phased approach to reaching the market median pay rates, with direction to staff to return during the FY2027 budget discussion with a draft of the next phase.
05-12-2026 City Council Meeting Minutes Page 10
With the payroll apportionment being one of the first bricks laid in the budget foundation each year, staff is recommending phase 2 of the multi-year adjustment to bring all classifications to within 10% of the market median beginning July 01, resulting in a payroll increase of approximately 7.5% overall increase ($54,246), while also maintaining the internal alignment proposed by RGS.
Significant savings from FY2026 consolidation of the City Manager/Clerk, and Special Projects/Grant Coordinator positions are estimated at close to $137,000. With the Water Fund struggling to gain positive ground, and with the volatile economic climate as a result of high energy costs that are rippling through cost-of-goods and services, staff is confident that prioritizing recruitment for the Grant Coordinator position and running lean through December 2027 with a consolidated Clerk/Manager position is a fiscally responsible administrative staffing approach.
REVENUE PROJECTIONS
General Fund revenues are projected to be on budget this year (FY2026), approximately $965,000. This includes Sales, Property, Occupancy Taxes, Rents, and fees for service.
EXPENSE PROJECTIONS
General Fund department expenses are projected to be under budget this year (FY2026). Although City Attorney expenses are over budget, savings from unfilled positions (City Manager and Grant Coordinator) significantly decreased expenses overall.
Approximately $140,000 was invested in Town Hall improvements in FY2026, along with $18,000 budget reserve adjustment for the CSA4 Fire Planning Study. Cost savings from consolidated staff classifications are projected to decrease reserve spending by approximately 50%. Final reserve numbers will be received as soon as the FY2025 Audit is complete.
NEXT STEPS
Consider the information presented, provide additional input to staff from questions/insights received during the discussion, and direct staff to return in June with a final, proposed draft FY2027 budget.
Public comment included:
Rodney Oien – North Coast Children’s Services
Salmonberry Preschool is struggling with enrollment, which is down in the service area overall. As of today, 9 children are enrolled next school year, but we need approximately 15 to maintain funding. Declining birthrates and universal Transitional Kindergarden (TK) enrollment are two factors. After explaining to parents that Salmonberry may have to close, there was an interest in outreach for additional funding sources. Salmonberry began as a parent cooperative, but eventually NCCS took over the program. We’re State funded, but declining enrollment threatens funding.
Cecelia: I’m a parent of a Salmonberry child and I love the program. Part of the lore of being here was to raise our child and see her through the Salmonberry-Trinidad School system. On April 29 there was a community meeting where we learned about the funding shortfall. I’ve taken the initiative to save Salmonberry. Any support the Council could give in the short-term (this coming fiscal year) we’ll have more information about the next steps.
We want to keep this local.
Ashley Mazonti – Trinidad area resident, TSEF parent
I support the preschool and keeping our school programs healthy. Long-term enrollment issues could be a risk without Salmonberry.
Council comments included:
Kelly: Encouraged the public to reach out to North Coast Chidren’s Services if they’d like more information on how they can be supported. I also want to revisit the Tennis Court resurfacing. I’d like to find out how much it will cost and take care of it. Possibly reduce CERT funding to $1,500-2,000.
Breckenridge: I still have an issue with the dark blue paint trim on the top section of the Town Hall façade, and would like to see an improvement in the flower gardens in front. 05-12-2026 City Council Meeting Minutes Page 11
Public comment included:
Patti Fleschner – Trinidad
Is there a possibility of relief from State mandates, or will this continue to increase? How about litigation expenses? Also, a big thanks to Public Works for improving views along the trails and viewsheds around Trinidad Head. I encourage all residents of Trinidad to maintain vegetation for the benefit of everyone’s viewsheds.
Adams explained that the General Plan will help reduce State micromanagement of land use, but overall regulatory compliance will not decrease. Approximately 30% of the City’s operation is dedicated to answering to higher authority.
Richard Johnson – Trinidad area resident
CERT believes $1,500 is acceptable, but there are some things that would be very useful for improving emergency communication.
Elaine Weinreb – Trinidad area resident
Please check the electrical system at Town Hall. I noticed some lights flickering.
No decision was made. Staff will incorporate feedback from tonight’s meeting and develop a draft budget proposal for further discussion on June 09.
5. November 2026 City Council Election Calendar.
Interim City Manager Adams presented the Council with a list of key dates associated with the November 2026 general election. Information item only. No decision was made.
6. Staff Activity Report – April 2026.
Interim City Manager Adams included the full report in the packet, but highlighted challenges and problem-solving hours dedicated to fulfilling the needs of the community, ongoing commitments, partnerships, and projects including:
- Emergency Intertie project update.
- Cash flow and investment monitoring.
- Significant water leak, extended service outage, boil water notice, and subsequent damage along Westaven Drive due to a fallen redwood tree.
- Processing two damage claims from the January Scenic Drive water main leak. - Repair of the damaged Town Hall state curtain.
- Assisted with a hazardous tree removal permit process for a View Street resident. - Removal of the HSIP Led Crosswalk signs directed by the Council in April.. - Completed the Intertie Project grant closeout, and tested the pump. WCSD had to interrupt the test due to issues in their distribution system.
- Town Hall painting is complete. Waiting for the sign to be completed.
Report only. No decision was made.
FUTURE AGENDA ITEMS
- Dark Sky Ordinance consideration.
ADJOURNMENT: 8:45pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor