06-09-2026 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, JUNE 09, 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, Tuttle, Waskiewicz. Breckenridge attended closed session, but was absent for the open session. City Staff in attendance: City Clerk/Interim City Manager Gabriel Adams, Special Project Manager Angela Cather, and Administrative Assistant Anton Souza. Approximately (3) participants were present by video-conference, and (5) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. ADJOURN TO 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. DR180684
2. Conference with Legal Counsel – Existing Litigation (Calif. Gov. Code Section 54956.9(d)(1)) (1 Case: Yurok Tribe v. City of Trinidad, et. al, U.S. District Court (Northern Dist.) 1:26-cv-05240) IV. RECONVENE TO OPEN SESSION – No reportable action taken.
V. APPROVAL OF THE AGENDA
Motion (Kenny/Kelly) to approve the agenda as submitted. Passed 4-0.
VI. APPROVAL OF MINUTES – 05/06/2026 cc
Kelly thanked staff for comprehensive minutes for both sessions.
Motion (Kelly/Tuttle) to approve the 05/06/2026 minutes as written. Passed 3-1-1. (Breckenridge absent for vote). (Kenny was absent from the 05/06/2026 meeting).
Motion (Waskiewicz/Tuttle) to approve the 05/12/2026 minutes as written. Passed 4-0-1 (Breckenridge absent).
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
Tuttle: RCEA reps got a tour of the Diablo Nuclear Power Plant in San Luis Obispo, currently producing 10% of power consumed by the State. State lease recently extended. Fascinating tour.
Kenny: HCAOG made the finding there were no unmet transit needs reasonable to meet. Approved work plan, and the final RHNA number was approved for Trinidad requiring 27 new housing units by 2035.
Kelly: Attended the LAFCO meeting on May 20. Budget discussion, membership selection committee, and my last meeting serving as Trinidad’s representative.
Waskiewicz: Nothing to report.
VIII.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 May. Approximately 70 calls for service in the greater Trinidad area, with two animal bite calls. HCSO also participated in public safety day at Trinidad School today.
IX. ITEMS FROM THE FLOOR.
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Rodney Oien – North Coast Childrens Services
Raised $12,000 so far towards our goal of $30,000 to support Salmonberry Preschool. We have 6 preapplications for enrollment so far. We’re looking at reducing our operating costs as well. Mayor Kelly received a text message from a member of the public requesting Council support, but also acknowledged that the community is willing to support as well. Hoping to send mailer to the community with options for providing financial support.
Cecelia Linarte – Trinidad Area resident, Salmonberry parent and site representative 06-09-2026 City Council Meeting Minutes Page 2
Thanked the Council for helping raise awareness of the challenges and opportunities to support the program.
Raised close to $12,000 so far, which is 40% towards the funding goal of $30,000. Hosting a community meeting on Thursday, June 11. Read a prepared statement thanking the community for support. Offered to represent the community’s questions and comments regarding the program as we work to reach our funding goals.
X. CONSENT AGENDA
1. Financial Statements – April 2026
2. Law Enforcement Report – May 2026.
3. Resolution 2026-05; Adopting a List of Projects for Fiscal Year 2025/2026 Funded By SB-1, The Road Repair and Accountability Act of 2017.
Motion (Kenny/Tuttle) to approve the consent agenda as submitted. Passed 4-0.
Xl. DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Decision regarding Resolution 2026-06; Adopting the FY2026-2027 Budget.
Interim City Manager Adams explained that on March 10 the Council conducted a FY2026 mid-year budget review to examine assumptions, make adjustments, and peel back a layer to examine whether priorities and targets were being achieved. The takeaway from that meeting was that the City’s overall financial position was healthy, City goals and priorities were being achieved despite the unanticipated staff reduction, the General Fund was on track to build additional reserves, and the Water Fund was out of the ICU but still in transitional care.
On May 12 staff presented preliminary information to set the stage for the final draft, highlighting two significant pieces of the puzzle - Salary Alignment Phase II and the Water Fund. The presentation also included updated General Fund revenue and expense projections, General Fund reserve estimates, and several challenges faced during FY2026 causing variances that would carry forward into FY2027.
As summarized in the summary sheet of the budget packet, the General Fund is anticipated to operate with a slight deficit of approximately $75,000 this year, with in expenses liberally projected near $1.04 million, and revenues conservatively at $967,723. In this context, it is important to understand that the General Fund Reserve has been building over the last 6-years due to a combination of robust economic activity, rising costs, increasing tourism, increasing property values, a resilient tax base, and missed spending targets (aka underspending).
Included in this budget is Phase II of the Salary Alignment, fulfilling the Council’s ongoing commitment to balance the needs of the City while encouraging employee retention and advancement. Phase II brings all positions equitably to 10% of the market median identified in the 2025 study conducted by Regional Government Services (RGS). The budget also anticipates full-spending of the City Manager position, baked-in.
The ripple effects of this salary will be visible in the budget, and the Council will have the opportunity to strategically discuss the position in detail in the next few months.
Financial statements from FY2025 have been reconciled by Cunningham, Malone and Morton Bookkeeping Service, but the final audit has not been completed by Brett Jones of JJACPA, Inc. The City is expecting the audited financial statements to be available at any moment, and presented to the Council for acceptance in July (approximately 3 months behind the target schedule).
Along with enhancing the current service level provided to the city, the budget aims to provide a continued focus on transitional stability for the Water Department. It is important to recognize that while adopting rates and transferring $300,000 from the General Fund to the Water Fund in July 2024 was needed, recovery will take many years.
The proposed budget includes an accurate assessment of what is to come this year, projecting conservative revenues, and supporting an increased diet of City planning, legal, and environmental challenges within a highly regulated State.
06-09-2026 City Council Meeting Minutes Page 3
GENERAL FUND REVENUE SUMMARY
FY2027 Projection: $967,723
Operating Expenses: $1,041,083
Difference: ($73,360)
GENERAL FUND EXPENSES
Administration (201): The budget for this category includes a sizeable portion of in-house and consultant staff that help run the City, and their expenses are based on past experiences as to what issues the City may face in the upcoming year.
Expenses and priorities for the Administration fund include:
• Staff wages & benefits account for 2.67 FTE employees with a 3.5% COLA determined by the City Manager as per the CPI-U Index released in May 2026 by the U.S. Bureau of Labor and Statistics. • 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.
Note: Payroll expenses in this category include full cost of the City Manager contract position that has been vacant since September 2025 ($87,546). Without this expense the overall General Fund budget deficit proposed of $73,360 would be resolved.
Public Safety (301 & COPS):
City Council approved the Second Amendment contracts with the Humboldt County Sheriff’s Office (HCSO) in May. The contract for Law Enforcement increased 10% to $66,059, Animal Control and Shelter Services increased 6% to $3,501 and $4,131.
Pacific Coast Security is budgeted to remain at $67,392 for the contract year providing 24 hours of coverage/week coverage. COPS grant funding will cover FY2027 Police, Animal Control, and Private Security expenses $141,083, continuing a second year of funding the public safety reserve (approximately $18,917).
Fire (401):
Thanks to the goodwill and dedication of life-long community resident Shawn Worth, and our Assistant Chief Dick Kieselhorst the department remains staffed and committed to providing Trinidad with emergency volunteer fire and first responder coverage. There is still a need for volunteers with an open invitation for applicants.
The City paid an $18,833 contribution FY2026 for the cooperative CSA 4 Fire Planning study. No indication has been made by LAFCO that additional funding will be required this fiscal year when the results of the study are released.
The CERT program will receive $2,000 proposed for program training and expenses, tracked through the Fire Department budget. It is important to recognize how the City’s investments in public safety benefit the community overall.
Public Works (501):
The Public Works Fund has been the recipient of significant offsets in employee labor costs over the past few 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. This will change in FY2027 with no money programmed for Public Works or Water Department staff. The result is a higher wage burden on those funds, but also with a benefit list shifting to other projects of community interest.
Expenses and priorities for the Public Works fund include:
• Staff wages & benefits for 2.48 FTE employees with a 3.5% COLA determined by the City Manager. 06-09-2026 City Council Meeting Minutes Page 4
• Annual Stormwater Discharge Permit Reporting to the State Water Resources Control Board. • City Engineer expertise in public works projects, technical advisory committees, regional transportation, and funding allocations by State and Local agencies.
• Right-of-Way and ongoing trail maintenance.
• Vehicle fuel and maintenance.
• Public building and facility maintenance, including $3,500 allocated for front entry landscape improvements.
• Resolve Boardwalk Project land tenure issue with Rancheria.
SPECIAL REVENUE – WATER FUND
The Council adopted a new rate plan in October 2024 that helped add much needed revenue to stabilize the fund. In addition, Council voted to give a one-time transfer of $300,000 to forgive the debt incurred due to several years of Water Fund deficit spending.
Water Fund expenses are generally divided into two categories, hard and soft costs; 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 consultants required to evaluate more complex data, planning, and regulatory tasks, along with and interim costs to transition back to in-house staff Plant operation.
CPO/T3 Update: Since March 2025, Chief Plant Operator costs decreased significantly to $4k/month while the City invested in the home-grown, in-house staff. One of our operators passed his T3 exam this year and applied to the State Water regulator to receive his license. His first application was denied with the State requesting an additional 1800 hours to be served. He sent a protest letter to the regulator arguing his college education background was equivalent to on-the-job training. He received his license on June 02, concluding a long road of working from scratch within the City’s ranks to achieve this milestone. The budget assumes this promotion, on a half-time basis. The City Manager will be working with the employee, department staff, and regulators to determine how to best utilize the new asset.
Rate Study Review Update: The rate study follow-up awarded to the City of Trinidad through RCAC was paused in May due to many unknown financial assumptions, mainly triggered by variances recorded in the current fiscal year financial reports (January 03 Scenic Drive leak, Measure Z $40k equipment investment, and higher than anticipated contracted services). Budget construction that occurred over the past two weeks unveiled answers to questions that stalled out the review. Staff has reengaged with RCAC staff with the final results pending release to the Council in July.
Revenue Projections: Rates will increase 10% for the second of four consecutive programmed increases, resulting in approximately $42,000 in additional revenue. $37,500 in new connection revenue is also expected from (2) outside city connections on Mill Creek Lane, and (5) from the Yurok Indian Housing Project on Westhaven Drive. Each new account will bring a minimum of $960/year in revenue ($6,720/year combined).
Expense summary: Contracted staff budget will decline significantly as staff begins the transition back to inhouse Chief Plant Operator coverage. Status quo funding of routine hard costs is included, along with contingency funds included for an emergency water line repair, valve replacements, and personnel investments in tech and communication improvements – based on feedback received and documented during the January and April water leaks post-incident reports. Including the salary adjustment Phase II, staff propose a budget that calls for a 22% spending reduction compared with FY2026.
Other information for consideration: With the one-time connection fees ($37,500) and City Manager’s salary (-$43,120) included, the fund net gain is anticipated to reach $34,267 as compared to the Rate Study anticipated a net gain of $28,950. However, the Reserves (Operating, Emergency, Debt, and Capital Assets) remain underfunded by $112,767.
06-09-2026 City Council Meeting Minutes Page 5
The cost of operating a small water system, maintaining its efficiency, in a very desirable area to live, while functioning to provide a vital resource to a community that has emphasized a desire to live “within its means” (and local watershed), will prove to be a challenge for the rate payers.
Water Fund expenses and priorities for FY25/26 include:
• Budget adjustments, and modified staffing plan developed to better align with the adopted 5-year rate plan. • Staff wages & benefits for 2.75 FTE total employees with a 3.5% COLA determined by the City Manager. • Focus on investing in staff that are vital to delivering quality drinking water to customers. • Recognizing that the water fund is far from out of the woods this early in the 5-year rate plan. • Continue to develop, incentivize, and train operators. • Complete the Rate Analysis review and continue to reduce costs while buying time to delay needing any loan funding from the General Fund until the full impact of the new rate is allowed to develop and results are determined.
• Support the TA application for the Water System Comparative Analysis Grant Project. • Continue to pursue grant funding for more expensive capital improvements and resiliency projects.
Council comments/questions included:
Kelly: Thankful for the presentation slide breaking down the City Planner’s expense categories this past year.
May need to have a joint meeting to get more direction from the Planning Commission on unfinished projects needing attention, and for the Council to consider a full time, in-house staff planner with Trever Parker’s expertise and guidance. We’re also underfunding the Water Fund capital reserves and may need to revisit the water rates in the next year. The community also appreciates when its city invests in and improves facilities.
Kenny: If we are short on something, capital improvement budget is the place to be underfunded. There are grants and low-interest loans to help backfill those areas if needed.
Tuttle: Can we add more water customers? How about adding ADU’s? Kelly explained that LAFCO would get involved in connection requests that are outside our water service area.
There were no public comments.
Motion (Kelly/Kenny) to adopt Resolution 2026-06; Adopting the FY2026-2027 Budget. Passed 4-0.
2. November 2026 City Council Election Calendar Update
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.
3. Discussion/Decision regarding July, August Meeting Schedule.
The Council agreed, by consensus, to cancel the August meeting.
4. Staff Activity Report – May 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.
Report only. No decision was made.
FUTURE AGENDA ITEMS
- ADU Dan Program to streamline permitting, and increase water connection revenue.
ADJOURNMENT: 8:30pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor