Agenda — Willits City Council, May 24, 2023

111 E. Commercial Street
Willits, California 95490
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WILLITS CITY COUNCIL
AGENDA
MAY 24, 2023 | 6:30 PM | CITY COUNCIL CHAMBERS

1. OPENING MATTERS
a. Call to Order. | b. Pledge to Flag. | c. Roll Call.

2. PUBLIC COMMUNICATIONS
The City Council welcomes participation in its meetings. Comments shall be limited to three (3) minutes per person so that everyone has an opportunity to address the Council. To expedite matters and avoid repetition, whenever any group of persons wishes to address the Council on the same subject matter, the Mayor may request the group appoints a spokesperson. This item is limited to matters under the jurisdiction of the City Council, which are not on the posted agenda. Public criticism of the City Council, Commission, Boards and Agencies will not be prohibited. The City Council will take no action.

3. PUBLIC MATTERS
a. Presentation of a Proclamation – Recognizing May 21-27, 2023, as National Public Works Week. b. Little Lake Fire Protection District Update – Fire Chief Carter

4. ENACTMENT OF ORDINANCES
a. Review and Consider the Adoption of Ordinance No. 2023-02 Repealing and Replacing the Current Title 6 of the Willits Municipal Code Entitled Animals with a New Title 6 Entitled Animals Incorporating the Provisions of Mendocino Code Title 10. b. Review and Consider the Adoption of Ordinance 2023-03 Repealing and Replacing Chapter

8.24 of the City of Willits Municipal Code with Chapter 8.26 Regarding Licensure of Tobacco Retailers.

5. CONSENT CALENDAR
The City Council considers matters listed under the Consent Calendar as routine. The Council will take action with a single motion and roll call vote. A Councilmember may request the removal of an item(s) from the Consent Calendar for separate discussion and subsequent action.

The following items as presented are before the City Council for approval or denial:
a. City Council Minutes:
i. May 10, 2023.

6. MONTHLY ACTIVITY REPORTS
Matters that do not require action by the City Council but are of public interest. a. Building Activity Report – April 2023.

7. COMMISSIONS, AGENCIES AND AUTHORITIES
The Willits City Council meets concurrently as the City of Willits Planning Commission & City of Willits Successor Agency.

Willits City Council Agenda – May 24, 2023.

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8. CITY MANAGER REPORTS AND RECOMMENDATIONS
a. Verbal Reports – No Action.
i. Business License administration update.
ii. Results from the E. Commercial Street Corridor public forum. iii. Possible transfer of the Baechtel Grove Gym to the Willits School District.

9. DEPARTMENT RECOMMENDATIONS (ACTION ITEMS)
a. Presentation by Bartle Wells Associates Regarding the 2023 Water and Wastewater Rate Study. With Discussion and Possible Authorization from Council to Mail California Proposition 218 Notices to Property Owners of Proposed Rate Adjustments and the Date and Time of the Public Hearing.

10. DEPARTMENT MONTHLY REPORTS – (presented at the second meeting of each month) a. Airport. b. Community Dev. c. Engineering. d. Finance. e. Police Dept. f. Public Works. g. Utilities.

11. CITY COUNCIL ANNOUNCEMENTS, COMMUNICATIONS AND REPORTS

12. GOOD & WELFARE

13. CLOSED SESSION NOTICE
a. None.

14. ADJOURNMENT
Right to Appeal - Persons who are dissatisfied with the decisions of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the Code of Civil Procedure, which generally limits to 90- days, the time within an individual and/or entity may judicially challenge the decisions of the City Boards and Agencies.

I hereby certify under penalty of perjury under the laws of the State of California that I posted the foregoing Agenda on the bulletin board at the main entrance of the City of Willits City Hall, located at 111 East Commercial Street, Willits, California, not less than 72 hours prior to the meeting set forth on this Agenda.

Dated this 19th day of May, 2023.

Delores Pedersen, City Clerk
Americans with Disabilities Act (ADA) Compliance
If you need assistance to attend or participate in a City Council meeting, please contact the City Clerk’s office at (707) 459-7113 or Fax (707) 459-1562. Notification at least 48-hours prior to the meeting will assist the City Clerk in assuring the implementation of reasonable accommodations to provide accessibility to the meeting. Our meeting room is wheelchair accessible and ADA parking is available.

Additional Meeting Information for Interested Parties
Materials related to an item on this Agenda submitted to the Willits City Council, Planning Commission, or Community Development Agency after distribution of the agenda packet are available for public inspection at City Clerk’s office at 111 E. Commercial Street, Willits, during normal business hours, Monday through Thursday 9 AM to 5:30 PM.

PROCLAMATION
A Proclamation of the Willits City Council Designating
May 21-27, 2023, as National Public Works Week
WHEREAS, public works professionals focus on infrastructure, facilities and services that are of vital importance to sustainable and resilient communities and to the public health, high quality of life and well-being of the people of the City of Willits; and,
WHEREAS, these infrastructure, facilities and services could not be provided without the dedicated efforts of public works professionals, who are engineers, managers, and employees at all levels of government and the private sector, who are responsible for rebuilding, improving, and protecting our nation’s transportation, water supply, water treatment and solid waste systems, public buildings, and other structures and facilities essential for our citizens; and, WHEREAS, it is in the public interest for the citizens, civic leaders and children in the City of Willits to gain knowledge of and to maintain an ongoing interest and understanding of the importance of public works and public works programs in their respective communities; and,
WHEREAS, the year 2023 marks the 63rd annual National Public Works Week sponsored by the American Public Works Association/Canadian Public Works Association be it now.

THEREFORE, BE IT RESOLVED that the Willits City Council formally designates the week May 21–27, 2023 as National Public Works Week; we urge all citizens to join with representatives of the American Public Works Association and government agencies in activities, events, and ceremonies designed to pay tribute to our public works professionals, engineers, managers, and employees and to recognize the substantial contributions they make to protecting our national health, safety, and quality of life.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Willits to be affixed this 24th day of May, 2023. ______________________________
Greta Kanne, Mayor
Attest:
______________________________
Delores Pedersen, City Clerk
Item No. 4a
Meeting Date: May 24, 2023

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Chief Fabian Lizarraga
Agenda Title: REVIEW AND CONSIDER THE ADOPTION OF ORDINANCE NO. 2023-02 REPEALING AND REPLACING THE CURRENT TITLE 6 OF THE WILLITS MUNICIPAL CODE ENTITLED ANIMALS WITH A NEW TITLE 6 ENTITLED ANIMALS INCOPORATING THE PROVISIONS OF MENDOCINO CODE TITLE 10.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 5 Minutes Summary of Request: Staff recommends that the City Council adopt the attached Ordinance No. 2023- 02 which will repeal WMC Title 6 entitled “Animals” in its entirety and replace it with the adoption of a new Ordinance at WMC, Title 6 entitled “Animals” that incorporates the provisions of Mendocino County Code 10 entitled “Animals.”
The Willits City Council at its meeting held on May 10th approved the introduction of the new Ordinance and a summary has since been published as required by law. The Ordinance is now before the Council for formal adoption.

The City of Willits contracts with the County of Mendocino for the County’s performance of animal control services within the City. A condition of the contract requires that the City code incorporates the provisions of Mendocino County Code Title Code 10. Accordingly, this recommended action to adopt the provisions of Mendocino County is necessary to obtain animal control services from the County.

Further, the recommendation to repeal the existing text of WMC Title 6 is recommended as that Ordinance is outdated and obsolete and in conflict with provisions of Title 10 of the County Code. The regulations set forth within Title 10 of the County Code proposed for incorporation in the City code include, among other things, the licensing of animals, investigation of animal complaints, impoundment, sheltering, and the quarantine and control of suspected rabid animals.

Recommended Action: Adopt the accompanying Resolution approving the adoption of Ordinance No. 2023-02.

Alternative(s): None recommended
Fiscal Impact: The County annually charges $22,124.80 for providing animal control services. The Budget contains sufficient funds to cover the expense.

Personnel Impact: Minimum except typical coordination tasks for the Police Department. 2021 Adopted Goals: This item satisfies Goal #1 under the Police Department…Maintain a Public Safety Agency capable of maintaining a safe community utilizing up to date law enforcement tools and delivering emergency services to the citizens and businesses of Willits in a responsive and proactive manner.

Reviewed by: City Manager City Attorney Assistant City Manager City Clerk Finance Director Human Resources Risk Manager
Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ Ordinance No. 2023-02 Page 1 of 1 May 24, 2023
ORDINANCE NO. 2023-02

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILLITS REPEALING AND REPLACING THE CURRENT TITLE 6 OF THE WILLITS MUNICIPAL CODE ENTITLED ANIMALS WITH A NEW TITLE 6 ENTITLED ANIMALS INCOPORATING THE PROVISIONS OF MENDOCINO CODE TITLE 10.

WHEREAS, on March 8, 2023, the City Council approved the execution of a contract between the County of Mendocino (“County”) and the City of Willits (“City”) for the County’s performance of animal control services within the City, and a condition of the contract requires that the City code incorporate the provisions of Mendocino County Code Title Code 10; and WHEREAS, Staff recommends that the City Council adopt the attached ordinance No. 2023-02 which will repeal WMC Title 6 entitled “Animals” in its entirety and replace it with the adoption of a new ordinance at WMC, Title 6 entitled “Animals” that incorporates the provisions of Mendocino County Code 10 entitled “Animals;” and
WHEREAS, the regulations set forth within Title 10 of the County Code proposed for incorporation in the City code include, among other things, the licensing of animals, investigation of animal complaints, impoundment, sheltering, and the quarantine and control of suspected rabid animals; and
WHEREAS, the existing text of WMC Title 6 is outdated and obsolete and in conflict with provisions of Title 10 of the County Code.

NOW THEREFORE, the Willits City Council does hereby ordain as follows:

ORDINANCE NO. 2023-02
Title 6 of the Willits Municipal Code entitled “Animals” (Ord. 64-6 § 1) is hereby repealed in its entirety and replaced with the following Title 6 entitled “Animals”.

6.01.010 - Adoption and incorporation of Title 10 of the Mendocino County Code entitled "Animals"
Notwithstanding any provisions of the Willits Municipal Code to the contrary, the city council hereby adopts and incorporates by reference Title 10 of the Mendocino County Code entitled "Animals” (County Ordinance No. 4421 adopted December 18, 2018), a copy of which is attached to the ordinance codified in this chapter as Exhibit A. The county of Mendocino, its officers, agents and employees, are hereby authorized to enforce the provisions of Title 10 of the Mendocino County Code as presently enacted within the incorporated limits of the city.

Ordinance No. 2023-02 Page 1 of 1 May 24, 2023

6.10.020 - Enforceability of the provisions of the Willits Municipal Code dealing with animal control.

If any of the provisions of the Willits Municipal Code conflict with the provisions of Title 10 of the Mendocino County Code, the provisions of the Mendocino County Code shall take precedence. None of the provisions of the Willits Municipal Code which are in conflict with Title 10 of the Mendocino County Code shall be enforceable within the incorporated city limits of the city.

EXHIBIT A
[Title 10, Mendocino County Code]
PASSED AND ADOPTED by the City Council of the City of Willits, on this 24th day of May 2023, by the following roll call vote:

AYES:

NOES:

ABSENT:

WHEREUPON, the Mayor declared the Ordinance passed and adopted and SO ORDERED.
_________________________
GRETA KANNE, Mayor
City Council of the City of Willits
ATTEST:
_________________________

DELORES PEDERSEN
City Clerk
APPROVED AS TO FORM:
________________________
H. JAMES LANCE
City Attorney

Item No. 4b
Meeting Date: May 24, 2023

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Brian Bender, City Manager
Agenda Title: REVIEW AND CONSIDER THE ADOPTION OF ORDINANCE 2023-03 REPEALING AND REPLACING CHAPTER 8.24 OF THE CITY OF WILLITS MUNICIPAL CODE WITH CHAPTER 8.26 REGARDING LICENSURE OF TOBACCO RETAILERS.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 20 min Summary of Request: At the May 10th meeting, the City Council accepted the staff recommendation to introduce by title only and waive the first reading of an Ordinance meant to repeal and replace Chapter 8.24 of the City’s Municipal Code with Chapter 8.26. The proposed Ordinance provision regulates the licensure of tobacco retailers. The Council heard comments from the public expressing their support for the Ordinance and how it protects youth from accessing flavored tobacco products.

As previously noted, the presented Ordinance includes the following two changes: (1) Modified language in the definition entry for “Characterizing Flavor”; and (2) Reduction of the monetary penalties found in Section #8.26.090(b).

Staff will continue to coordinate with the Tobacco Prevention Coalition and County staff to compose a mutually acceptable Cooperative Agreement between the County and City to assist with outreach and enforcement activities.

Attached is the Ordinance.

Recommended Action: Adopt Ordinance 2023-03 to repeal and replace Chapter 8.24 of the City of Willits Municipal Code with Chapter 8.26.

Alternative(s): Do not introduce the Ordinance and direct staff on next steps.

Fiscal Impact: Currently uncertain. The unknowns relate to the eventuality of the outcome of the Cooperative Agreement, and if the Council agrees to change the licensing fees when considering a revised Fee Schedule.

Personnel Impact: Similar to other inspection/enforcement programs unless there is a violation. 2021 Adopted Goals: The Goals do not address this specific item.

Reviewed by: City Manager City Attorney Assistant City Manager City Clerk Finance Director Human Resources Risk Manager
Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ ORDINANCE NO. 2023-03
ORDINANCE REPEALING AND REPLACING CHAPTER 8.24 OF THE CITY OF WILLITS MUNICIPAL CODE WITH CHAPTER 8.26 REGARDING LICENSURE OF

TOBACCO RETAILERS
The City Council of the City of Willits, State of California, ordains as follows:
“SECTION I. FINDINGS AND DECLARATIONS:

WHEREAS, four out of five children who use tobacco started with a flavored tobacco product; WHEREAS, according to a Report of the Surgeon General, internal tobacco industry documents show that the industry uses flavors to reduce the harshness of their products to make them more appealing to new users, almost all of whom are under the age of 18; WHEREAS, the results of a California Statewide survey among students in 2018 by the Center for Research and Intervention in Tobacco Control indicate that flavored electronic smoking products are mainly responsible for a rapid increase in youth and young adult tobacco use; WHEREAS, according to a fact sheet on Menthol and Cigarettes published by the California Department of Public Health, menthol flavorings are more popular with young smokers based on a national study finding that 54.5% of high school and 48.4% of middle school users of tobacco products smoke menthol cigarettes (as compared to 30-35% of adults); WHEREAS, within a statewide survey of high school students in 2017-2018, the Northern Region of California, including the County of Mendocino, has among the highest prevalence of tobacco use;
WHEREAS, the results of the California Healthy Kids Survey for 2017-2019, indicate the rate of vape use among current tobacco users in Mendocino County are 9% for seventh grade, 22% for ninth grade, and 22% for eleventh grade;
NOW THEREFORE, it is the intent of the City Council of the City of Willits, in enacting this ordinance, to join numerous other California jurisdictions, which have adopted comprehensive flavor bans:

SECTION II. Chapter 8.24 of the Willits Municipal Code entitled “Required Licensure of Tobacco Retailers” is hereby repealed and replaced with Chapter 8.26 entitled “Tobacco Retail Licensure” to read as follows:

Sec. 8.26.010 - Definitions.

The following words and phrases, whenever used in this Chapter, shall have the meanings defined in this section unless the context clearly requires otherwise:
(a) “Agency” means the Mendocino County Public Health Department or the duly authorized designee of the Public Health Department.
(b) “Arm’s Length Transaction” means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this Chapter is not an Arm’s Length Transaction. (c) “Characterizing Flavor” means a distinguishable taste or smell, other than the taste or smell of tobacco that is distinguishable by an ordinary consumer, imparted either prior to or during consumption of a Tobacco Product, including, but not limited to, tastes or smells relating to any fruit, menthol, mint, wintergreen, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverages, herb, or spice. A Tobacco Product shall not be determined to have a Characterizing Flavor solely because of the use of additives or flavorings or the provision of the ingredient information.
(d) “Compliance Check” means the process in which the Agency sends a Youth Decoy into a Tobacco Retailer’s establishment to attempt to purchase a Tobacco Product. (e) “Electronic Nicotine Delivery Systems (ENDS)” means an electronic device that can be used to deliver an inhaled dose of nicotine, or other substances, including any component, part, or accessory of such a device, whether or not sold separately and includes any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor.
(f) “Flavored Tobacco Product” means any tobacco product that contains a constituent that imparts a characterizing flavor.
(g) ”Hearing Officer” means either a person assigned by the Agency to conduct a hearing pursuant to this Chapter, who is qualified by training and experience to conduct such an adjudicatory hearing, or an impartial Hearing Officer assigned by the City Manager or the City Manager's designee (hereafter, "the Manager"), who is not an employee or officer of the City, and who is qualified by training and experience to conduct such an adjudicatory hearing. (h) “Person” shall mean any person, firm, partnership, trust, estate, association, corporation, or organization of any kind. Where a principal acts through an agent, the word "person" shall include both such principal and agent.
(i) “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated tobacco or plant product intended for inhalation, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking. (j) “Tobacco paraphernalia” means cigarette papers or wrappers, blunt wraps as defined in Section 308 of the Penal Code, pipes, holders of smoking materials of all types, cigarette rolling machines, or other instruments or things designed for the smoking or ingestion of tobacco products.
(k) “Tobacco Product” means:

1. Any product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including but not limited to cigarettes, cigars, little cigars, chewing tobacco, pipe tobacco, snuff; and

2. Any Electronic Nicotine Device System (ENDS) that can be used to deliver an inhaled dose of nicotine, or other substances, including any component, part, or accessory of such a device, whether or not sold separately. Including any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor.

3. Notwithstanding any provision of subsections 1. and 2. to the contrary, “Tobacco Product” includes any component, part, or accessory of a Tobacco Product, whether or not sold separately. “Tobacco Product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marked and sold solely for such an approved purpose. (l) “Tobacco Retailer” means any Person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco or Tobacco Products: "Tobacco Retailing" shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco or Tobacco Products sold, offered for sale, exchanged, or offered for exchange. (m) “Youth Decoy” shall refer to a participant in a compliance check who is under the minimum age required for purchase pursuant to state and federal laws, reasonably appears under the same minimum age and who has participated in the Public Health Department training for youth involved with the tobacco control program compliance surveys.

Sec. 8.26.015 - Sales of Flavored Tobacco Product Prohibited. (a) It shall be a violation of this Chapter for any Tobacco Retailer or any of the Tobacco Retailer’s agent or employees to Sell or offer for Sale, or to possess with intent to Sell or offer for Sale, any Flavored Tobacco Product within the City of Willits. (b) The payment of the license fee designated in Section 8.26.060 confers paid status upon a license for a term of one year. Each Tobacco Retailer shall apply for the renewal of his or her Tobacco Retailer's license no later than thirty (30) days prior to expiration of the payment term.
(c) A Person selling Tobacco Products within the City of Willits without a valid tobacco retailer license, including a Person whose privilege to sell tobacco products has been suspended or revoked:

1. Shall keep all Tobacco Products out of public view. The public display of Tobacco Products in violation of this provision shall constitute Tobacco Retailing without a license under Section 8.26.090 and will incur administrative fines in accordance with 8.26.100.

2. Shall not display any advertising relating to Tobacco Products that promotes the sale or distribution of such products from the Tobacco Retailer’s location or that could lead a reasonable consumer to believe that such products can be obtained at that location.
(d) Nothing in this Chapter shall be construed to grant any Person obtaining and maintaining a Tobacco Retailer's license any status or right other than the right to act as a Tobacco Retailer at the location in the City of Willits identified on the face of the permit.

For example, nothing in this Chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on smoking in enclosed places of employment made applicable to business establishments by Labor Code §6404.5. (e) It is the responsibility of each Tobacco Retailer to be informed regarding all laws applicable to Tobacco Retailing, including those laws affecting the issuance of a Tobacco Retailer's license. No Retailer may rely on the issuance of a license as a determination by the Manager that the Retailer has complied with all laws applicable to Tobacco Retailing.

Sec. 8.26.030 - Application Procedure.
(a) Application for a Tobacco Retailer's license shall be submitted to the Manager in the name of each Person proposing to conduct retail tobacco sales and shall be signed by each Person or an authorized agent thereof on an annual basis. It is the responsibility of each Person to be informed of the laws affecting the issuance of a Tobacco Retailer's license. A license that is issued in error or on the basis of false or misleading information supplied by a Person may be revoked pursuant to Section 8.26.090(h) of this Chapter. All applications shall be submitted on a form supplied by the Agency and shall contain the following information:

1. The name, address, and telephone number of each Person.

2. The business name, address, and telephone number of the single fixed location for which a Tobacco Retailer's License is sought.

3. The name and mailing address authorized by each Person to receive all licenserelated communications and notices (the "Authorized Address"). If an Authorized Address is not supplied, each Person shall be understood to consent to the provision of notice at the business address specified pursuant to subparagraph 2 above.

4. Whether or not any Person has previously been issued a City of Willits license pursuant to this Chapter, or former Chapter 8.24, that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation.

5. Such other information as the Manager deems necessary for the administration or enforcement of this ordinance.
(b) All licensed Tobacco Retailers shall inform the Manager in writing of any change in the information submitted on the application for a Tobacco Retailer’s license within 14 days of a change.

Sec. 8.26.040 - Issuance of License.

Upon the receipt of an application for a Tobacco Retailer's license and the license fee, the Manager shall issue a license unless substantial evidence demonstrates one or more of the following bases for denial exists:
(a) The information presented in the application is incomplete, inaccurate, or false.

Intentionally supplying inaccurate or false information shall be a violation of this Chapter.
(b) The application seeks authorization for Tobacco Retailing by a Person for which or whom a suspension is in effect pursuant to Section 8.26.090 of this Chapter or former Chapter 8.24; or by a Person which or who has had a license revoked pursuant to Section 8.26.090 of this Chapter or former Chapter 8.24. (c) The Tobacco Retailer at the time of the application is indebted to the City for any delinquent license fees or fines pursuant to this Chapter, unless such licensee, with the consent of the Manager enters into a written agreement with the City to pay such delinquent fees in at least monthly installments extending over a period not to exceed one year and is current with said installment payments. (d) The Tobacco Retailer has violated this Chapter or any other tobacco control law three (3) or more times within the previous sixty (60) months.

Sec. 8.26.050 - Display of License.

Each license shall be prominently displayed in a publicly visible location at the licensed premises.

Sec. 8.26.060 - Fees for License.

The fee to issue or to renew a Tobacco Retailer's license shall be paid annually and shall be established by resolution of City Council of the City of Willits. The fee shall be calculated so as to recover the cost of administration and enforcement of this Chapter, including, for example, issuing a license, administering the license program, and if applicable, retailer education, retailer inspection and compliance checks, documentation of violations, and enforcement, but shall not exceed the cost of the regulatory program authorized by this Chapter. Annual fees shall not be pro-rated or refunded during the course of the year. The City may charge a re-inspection fee to offset the additional staff time required to handle non-compliant businesses. Additional inspections thereafter will be billed based on actual costs incurred.

Sec. 8.26.070 - Licenses Nontransferable.

A Tobacco Retailer's license is nontransferable from one Person to another or from one location to another. Whenever a Tobacco Retailing location has a change in ownership, a new Tobacco Retailer’s license is required.

Sec. 8.26.080 - License Violation.

VIOLATION OF LAWS RELATED TO TOBACCO PRODUCTS. It shall be a violation of a Tobacco Retailer's license for a Person or his or her agent or employee to violate any local, state, or federal tobacco-related laws regarding the sales, advertising or display of Tobacco Products, including, but not limited to, the Stop Tobacco Access to Kids Enforcement Act (“STAKE Act”), California Businesses and Professions Code section 22958, and California Penal Code section 308.

Sec. 8.26.085 - Compliance Monitoring.

The City anticipates that compliance checks of each Tobacco Retailer will be conducted at least two (2) times during each twelve-month period by the Agency or its designee(s).

Retailers may be subject to additional inspections based on random selection, past violation(s) or complaints. Nothing in this paragraph shall create a right of action in any licensee or other Person against the City, the Agency or their agents. Compliance checks shall be carried out in an effort to enforce any local, state or federal law related to tobacco sales, especially those related to a minimum age for tobacco purchases or possession.

The City shall not enforce any tobacco-related minimum-age law against a person who otherwise would be in violation of such law because of the person's age (hereinafter "Youth Decoy") if the violation occurs when: (a) the Youth Decoy is participating in a compliance check supervised by a law enforcement official, a code enforcement official, or any peace officer; or (b) the Youth Decoy is participating in a compliance check funded or supervised in any part by the County, the City, or, funded or supervised in any part by the California Department of Health Services.

Sec. 8.26.090 - Suspension, Termination or Revocation of License. (a) TOBACCO RETAILING WITHOUT A VALID LICENSE. In addition to any other penalty authorized by law, including the application of Administrative Fines under Section

8.26.100, if the City finds based on a preponderance of the evidence, after notice and an opportunity to be heard pursuant to section 8.26.090(d) that any Person has engaged in Tobacco Retailing at a location without a valid Tobacco Retailer’s license, either directly or through the Person’s agents or employees, the Person shall be ineligible to apply for, or to be issued, a Tobacco Retailer’s license as follows: 1. After a first violation at a location within any sixty (60) month period, no new license may be issued for the Person or the location (unless ownership of the business at the location has been transferred in an Arm’s Length Transaction), until one (1) year has passed from the date of the violation.

2. After a second violation at a location within any sixty (60) month period, no new license may be issued for the Person or the location (unless ownership of the business at the location has been transferred in an Arm’s Length Transaction), until three (3) years have passed from the date of the violation. 3. After a third violation at a location within any sixty (60) month period, no new license may be issued for the Person or the location unless ownership of the business at the location has been transferred in an Arm’s Length Transaction.
(b) VIOLATION OF MINIMUM AGE LAWS RELATED TO TOBACCO PRODUCTS:

SUSPENSION, REVOCATION. In addition to any other remedy authorized by law after notice and opportunity to be heard pursuant to section 8.26.090(d), a Tobacco Retailer’s license may be suspended or revoked as provided in this section if the Manager finds, based on a preponderance of the evidence, that the licensee, or any of the licensee’s agents or employees, has violated tobacco-related laws as indicated in Section 8.26.80.

A Tobacco Retailer shall also be charged the following fines. All administrative penalties resulting from violation of this Chapter and collected by the City shall be maintained in a fund specifically designated for compliance monitoring, enforcement efforts and education related to the sale of Tobacco Products to youth. 1. Upon a finding by the City of a first license violation within any thirty-six (36) month period, the Person shall receive a letter of reprimand from the City which shall advise the Person that if the Person trains all sales employees at the location of the sale in the laws pertaining to the sale of Tobacco Products to persons under the minimum age allowed by state law to purchase Tobacco Products, and techniques to ensure future compliance, no penalty will be imposed.

Person must submit to the Manager, within 30 days, an affidavit signed by Person and the sales employees that said training has been completed. If Person fails to timely submit the affidavit, City shall impose a fine of one thousand dollars ($1,000.00) for a first violation in any thirty-six (36) month period. 2. Upon a finding by the City of a second license violation within any thirty-six (36) month period, the Tobacco Retailer shall pay a fine of two thousand dollars ($2,000.00) and the Person's license shall be suspended for twenty-one (21) days. 3. Upon a finding by the City of a third license violation within any thirty-six (36) month period, the Tobacco Retailer shall pay a fine of five thousand ($5,000.00) and the Person's license shall be suspended for sixty (60) days. 4. Upon a finding by the City of a fourth license violation within any thirty-six (36) month period, the Tobacco Retailer shall pay a fine of seven thousand dollars ($7,000.00) and the Person's license shall be suspended for one hundred eighty (180) days. 5. Upon a finding by the City of a fifth or subsequent license violation within any thirty-six (36) month period, the Tobacco Retailer shall pay a fine of nine thousand dollars ($9,000.00) and the Person's license shall be revoked for not less than one year.
(c) NO DISPLAY OR ADVERTISING. During any period of suspension or revocation the licensee:

1. Shall remove all Tobacco Products from public view. Failure to do so shall result in an administrative fine pursuant to Section 8.26.100, with each day constituting a separate violation.

Failure to do so shall result in an administrative fine pursuant to Section 8.26.100, with each day constituting a separate violation.
(d) NOTICE OF INTENDED DECISION. Upon the existence of any of the grounds for ineligibility, denial, suspension, or revocation of a license pursuant to this chapter, the City shall issue to the license applicant or holder a notice of intended decision. The notice of intended decision shall state the grounds upon which the denial, revocation, or suspension is based. The notice of intended decision shall specify the effective date of the action. The notice of intended decision shall advise the license applicant or holder that the suspension or revocation shall become final unless the person files a written request for administrative review within 10 calendar days of the date of service of the notice of intended decision.
(e) SERVICE PROCEDURES. The City’s decision to impose a suspension or revocation may be served by personal service or by certified mail, postage prepaid with a return receipt requested. Simultaneously, the decision may be sent by first class mail, postage prepaid with certificate of mailing requested. Certified and first-class mail will be addressed to the Tobacco Retailer at the address shown on the license application. If the decision is sent by certified mail and returned unsigned, then service shall be deemed effective pursuant to first claim mail, provided the decision sent by first class mail is not returned by the United States Postal Service undelivered. In the case of service by certified mail for which a signed receipt is returned, the date of service shall be the date of signing of the receipt. In the case of service by regular first-class mail, the date of service shall be the date upon which such mail was deposited in the United States Mail with postage prepaid, plus five days.
(f) TERMINATION OF LICENSE FOR FAILURE TO PAY RENEWAL FEES. A Tobacco Retailer's license which is not timely renewed pursuant to §8.26.020(b) shall automatically be deemed terminated by operation of law.
(g) REVOCATION OF LICENSE ISSUED IN ERROR. A Tobacco Retailer's license shall be revoked if the City finds, after notice and opportunity to be heard, that one or more of the bases for denial of a license under §8.26.040 existed at the time application was made or at any time before the license issued. The decision by the City shall be the final decision of the City. The revocation shall be without prejudice to the filing of a new application for a license.
(h) REVOCATION OF LICENSE OBTAINED UNDER FALSE PRETENSES. Tobacco Retailers whose licenses are obtained under false pretenses shall have their license revoked. This revocation shall be with prejudice. One calendar year must elapse between any revocation pursuant to this subsection and any subsequent application. (i) APPEAL OF SUSPENSION, PENALTIES OR REVOCATION. Requests for appeal must be filed with the City within ten (10) calendar days from the date of a properly served decision under 8.26.090(e). With respect to suspensions or revocations, if such an appeal is timely made it shall stay enforcement of the appealed action. An appeal is not available for a revocation made pursuant to

8.26.090(f) above. The City may engage in settlement negotiations and may enter into a settlement agreement with a Tobacco Retailer alleged to have violated this Chapter; provided a timely appeal has been filed. Settlements shall not be confidential.
(ii) Sec. 8.26.100 - Administrative Fine.
(a) GROUNDS FOR FINE. If the City finds, based on a preponderance of the evidence, that any unlicensed person, including a person named on a revoked or suspended license, has engaged in Tobacco Retailing without a valid license, including the failure to remove Tobacco Products from public view and failure to remove advertising promoting the sale of Tobacco Products, the City shall fine that Person:

1. a fine not exceeding one hundred dollars ($100) for a first violation in any thirty-six (36) month period; or

2. a fine not exceeding two hundred dollars ($200) for a second violation in any thirty-six (36) month period; or

3. a fine not exceeding five hundred dollars ($500) for a third or subsequent violation in any thirty-six (36) month period. Each and every day a violation of this provision exists shall constitute a separate violation. (b) NOTICE OF VIOLATION. A notice of violation and of intent to impose a fine shall state the basis of the City's determinations as identified below and include an advisement of the right to appeal. Any appeal must be made in accordance with the procedure identified in Section 8.26.105 below. The notice of violation shall contain the following:

1. The name and address of the responsible Tobacco Retailer;

2. The basis of the City’s determinations;

3. A statement explaining how, where, to whom, and within what number of days the penalty shall be paid;

4. A statement explaining that the fine is effective immediately with the understanding that any subsequent Notice of Violation would be considered a repeat violation subject to a higher penalty;

5. Identification of appeal rights, including the time within which the Notice of Violation may be contested.
(c) SERVICE OF NOTICE OF VIOLATION. The notice of violation and of intent to impose a fine may be served by personal service or by certified mail, postage prepaid with a return receipt requested. Simultaneously, the decision may be sent by first class mail, postage prepaid with certificate of mailing requested.

Certified and first class mail will be addressed to the Tobacco Retailer at the address shown on the license application. If the decision is sent by certified mail and returned unsigned, then service shall be deemed effective pursuant to first claim mail, provided the decision sent by first class mail is not returned by the United States Postal Service undelivered. In the case of service by certified mail for which a signed receipt is returned, the date of service shall be the date of signing of the receipt. In the case of service by regular first-class mail, the date of service shall be the date upon which such mail was deposited in the United States Mail with postage prepaid, plus five days. (d) IMPOSITION OF FINE. If no appeal is timely received, the City's determination on the violation and the imposition of a fine shall be final and payment shall be made within thirty (30) calendar days of written demand made in the manner specified above for a notice of violation. If the fine is not paid within that time, the fine may be collected, along with interest at the legal rate, in any manner provided by law. In the event that a judicial action is necessary to compel payment of the fine and accumulated interest, the Person or Persons subject to the fine shall also be liable for the costs of the suit and attorney's fees incurred by the City in collecting the fine.
(e) FAILURE TO PAY FINE. The City may impose any remedy authorized by law to collect the administrative fine if not paid timely pursuant to the provisions of this Chapter.

Sec. 8.26.105. Appeal Procedure.

Whenever this Chapter provides for a right to appeal, the recipient must give notice to the City within 10 calendar days from the date of service by providing a document in writing, bearing the title, “Appeal of Tobacco Retail Decision”, containing the name, address, and phone number of the appellant and the grounds on which the decision is being contested. (a) The notice of appeal shall be accompanied by an advance deposit in the amount of the total administrative penalty. If the City Council has established a hearing fee, the hearing fee shall also be provided.
(b) Any notice of appeal filed without providing the advance deposit and hearing fee (if applicable) shall be deemed incomplete.
(c) The City, upon receiving a timely and properly filed appeal, shall then cause the matter to be set for hearing before a Hearing Officer by notifying the Hearing Officer directly. (d) A hearing before a Hearing Officer shall be set for a date that is not less than ten (10) and not more than (30) days from the date that the notice of appeal is filed. (e) The Hearing Officer, or the Manager in cooperation with the Hearing Officer, shall notify the parties in writing, at least ten (10) days prior to the hearing date, of the date and location of the hearing. It shall be sufficient to provide notice to the appellant by using the address listed in the request for appeal.
(f) At the prescribed time and place, the Hearing Officer shall consider relevant evidence from all parties as to whether the violation of tobacco-related laws occurred. The City’s notice of violation, intended decision and any additional documents submitted by the City or by the Agency shall constitute prima facie evidence of the respective facts contained in those documents.
(g) Parties may choose to be represented by an attorney. However, the Administrative Procedure Act (commencing with Government Code Section 11500) shall not be applicable to such hearing nor shall formal rules of evidence in civil or criminal proceedings be applicable.
(h) The failure of any appellant to appear at the scheduled hearing shall constitute an abandonment of the appeal.
(i) The Hearing Officer may continue the hearing and request additional information from the parties prior to issuing a written decision.
(j) The City has the burden of proving by a preponderance of the evidence that the alleged violation occurred.
(k) Following conclusion of the hearing and based on the evidence before it, the Hearing Officer shall prepare a written decision that either grants or denies the appeal, contains findings of facts and conclusions of law in support of the Hearing Officer’s decision to impose fines, a license suspension, condition or some combination thereof. The Hearing Officer’s written decision shall be the final decision of the City and shall become final upon the date notice thereof is mailed to the appellant by certified mail. (l) If the Hearing Officer determines that the Tobacco Retail Decision shall be upheld, then the fine amount identified, or as otherwise adjusted by the Hearing Officer, shall be immediately collectable by the City. If the Hearing Officer determines the Tobacco Retail Decision should not be upheld, the Hearing Officer shall order the Citation dismissed, and the City shall return the advance deposit.
(m) Any determination of the Hearing Officer shall be subject to judicial review pursuant to Code of Civil Procedure Section 1094.5.

Sec. 6.20.110 - Enforcement.

The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity. (a) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this ordinance shall constitute a violation. (b) In addition to the administrative enforcement procedures provided by this Chapter, violations of this ordinance may, at the discretion of the District Attorney, be prosecuted as misdemeanors. (c) Violations of this ordinance are hereby declared to be public nuisances. (d) Violations of this ordinance are hereby declared to be unfair business practices and are presumed to at least nominally damage each and every resident of the community in which the business operates. (e) In addition to other remedies provided by this Chapter or by other law, any violation of this ordinance may be remedied by a civil action brought by the City Attorney or the District Attorney, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. (f) Any Person acting for the interests of itself, its members, or the general public may bring an action for injunctive relief to prevent future such violations or to recover such actual damages as he or she may prove. (g) Any person who is found to have violated this Chapter shall be liable for such costs, expenses and disbursements paid or incurred by the City or any of its contractors in the correction, abatement, prosecution of, or administrative hearing, on the violation. Re-inspection fees to ascertain compliance with previously noticed violations shall be charged to the owner of the establishment and may be set by the City Council in the City's Master Fee Schedule.

Sec. 8.26.120 - Severability.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Willits hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Sec. 8.26.120 - Agency Cooperation.

The effective operation of the Youth Decoy program and the enforcement of this ordinance will require the ongoing assistance and cooperation of both the City of Willits and the County of Mendocino, and performance of the terms of an Agency Cooperation Agreement to be executed by the City and County following adoption of this ordinance.

PASSED AND ADOPTED by the City Council of the City of Willits, on this 24th day of May 2023, by the following roll call vote:

AYES:

NOES:

ABSENT:

WHEREUPON, the Mayor declared the Ordinance passed and adopted and SO ORDERED.
_________________________
GRETA KANNE, Mayor
City Council of the City of Willits
ATTEST:
_________________________

DELORES PEDERSEN
City Clerk
APPROVED AS TO FORM:
________________________
H. JAMES LANCE
City Attorney
111 E. COMMERCIAL STREET
WILLITS, CALIFORNIA 95490
(707) 459-4601 TEL
(707) 459-1562 FAX

Page 1 of 4 ends

WILLITS CITY COUNCIL

MINUTES
WEDNESDAY, MAY 10, 2023
Mayor Kanne called a regular meeting of the City Council to order at 6:30 p.m., in Council Chambers. The meeting was preceded by the pledge to the flag.

Roll Call: Councilmembers Madge Strong, Larry Stranske, Saprina Rodriguez, Vice Mayor Gerardo Gonzalez and Mayor Greta Kanne were present.

Also present were staff members: Brian Bender, City Manager; Cathy Moorhead, Assistant City Manager; Jim Lance, City Attorney; Manuel Orozco, Finance Director; Scott Herman, Public Works Director; Kenan O’Shea, Public Works Superintendent; Taylor Perry, City Planner; Fabian Lizarraga, Police Chief; and Delores Pedersen, City Clerk.

2. Public Communications
 None presented.

3. Public Matters
a. Presentation of a Proclamation – National Police Week Mayor Kanne read the proclamation for the record and presented it to Police Chief Lizarraga Recognizing May 14-20, 2023, as National Police Week. b Updates from - Mendocino County Third District Supervisor John Haschak.  With the decline in Sales Tax, Cannabis Tax and Property Taxes being flat the County is facing a three-million-dollar deficit, they plan to balance the budget in June. Keeping the Museum open is his priority.
 During the Board of Supervisors meeting, held May 9, 2023, Supervisor Haschak wanted to make sure that the board is committed to making sure that the Measure P money (¼ cent sales tax) goes to the Fire Departments and Fire Safety Programs in the county and not use any of it to close any budget gaps the county might have. The rest of the board of supervisors agreed with this proposal. Funds from Measures D & E, the private campground transient occupancy tax, the Board of Supervisors is also committed to giving these funds to the fire departments as well.
 The Willits Library’s new roof and solar panels are slated to be put on in the summer of 2024.
 Councilmember Rodriguez asked if there was any update on the tourism tax? Supervisor Haschak reported that Visit Mendocino is not going for an increase tax this year. He will keep the council updated.
 Mayor Kanne asked that the County rethink the repair of the library roof sooner, she expressed the concern of Willits residents over the leaks inside the library and they are worried about the book collection.
 Councilmember Rodriguez asked for an update on the status of the funds that were allocated for water storage tanks in the Fort Bragg and Mendocino area.

Supervisor Haschak responded that Fort Bragg received an eight-million-dollar grant to redo the pipes that bring water in from the Noyo River, they are also working on a couple new reservoirs. They also received a grant to do desalination of water from the ocean.

Willits City Council Minutes of May 10, 2023 Page 2 of 4 The town of Mendocino received a five-million-dollar grant to install new water storage tanks.

Both Councilmember Rodriguez and Strong asked that Supervisor Haschak to keep the Council updated on the status of these projects and that the funds not be diverted from their intended purpose.

4. Enactment of Ordinances
None presented.

5. Consent Calendar
The following item(s) are recommended for approval or denial, as follows:
a. City Council Minutes:
i. April 26, 2023.

Public Comment: None presented.

Moved by Stranske/Seconded by Gonzalez and carried unanimously to approve Consent Calendar item(s) (a).

6. Monthly Activity Reports
Matters that do not require action by the City Council but are of public interest. a. Building Activity Report – April 2023.

7. Commissions, Agencies and Authorities
None presented.

8. City Manager Reports and Recommendations
a. Transfer of Funds from Park Fund 450 to an Expenditure Account for the Purpose of Making Necessary Repairs to Damage Infrastructure at the Rodeo Grounds and Recreation Grove Properties. [General discussion relating to the repair project.] Presenting Staff Member: Kenan O’Shea, Public Works Superintendent.

Public Comment: None presented.

Moved By Stranske/Seconded by Rodriguez and Carried Unanimously to Adopt Resolution No. 2023-30 Approving Creation of an Expenditure Account to Cover Services, Materials, Rentals, and Labor Related to the Costs of Restoring the Facilities Damaged at the Recreation Grove and Rodeo Grounds ay a Fallen Tree in a December 27th Storm Event.
b. Art in Public Spaces Committee appointments.

Public Comment: None presented.

Moved By Strong/Seconded by Gonzalez and Carried Unanimously to adopt Resolution No. 2023-31 appointing Judy Fisch, Margaret Guhde, Gary Martin and Dan Miller to the Art in Public Spaces Committee.
c. Approve a New Position for Capital Improvement Project (CIP) Administrator for Placement in the Newly Configured Services & Facilities Department and Approve a Budget Revision to Include the Position and Job Title, Effective May 11, 2023.

Public Comment: None presented.

Willits City Council Minutes of May 10, 2023 Page 3 of 4 Moved by Strong/Seconded by Gonzalez and carried 4/1 with Stranske dissenting to adopt Resolution No. 2023-32 Approving a Capital Improvement Project (CIP) Administrator Job Description for Placement in the Newly Configured Services & Facilities Department and Corresponding Salary Range.
d. Receive Staff Comments and Consider Introducing by Title Only and Waiving the First Reading of an Ordinance Repealing and Replacing Chapter 8.24 of the City of Willits Municipal Code with Chapter 8.26 Regarding Licensure of Tobacco Retailers.

Public Comment: Representatives and supporters of the Mendocino County Tobacco Coalition spoke in support of the revised Licensing of Tobacco Retailers Ordinance.

Moved by Gonzalez/Seconded by Rodriguez and carried Unanimously to Approve the Introduction of an Ordinance Repealing and Replacing Chapter 8.24 of the City of Willits Municipal Code with Chapter 8.26 Regarding Licensure of Tobacco Retailers. e. Verbal Reports
 Frontier Days Grounds update.

Demolition and rebuilding of a temporary roof on the Margarita Shack is underway.

Bleacher repair has started incrementally and should fully start the week of May 15, 2023. Willits Frontier Days Board secured their own vendor for Portable Restrooms, the city will seek reimbursement of $18,840 towards the Portable Restrooms cost.  The city will hold an East Commercial Street Corridor Forum May 18, 2023, 6:00 pm to 8:00 pm, in the Community Center.
 Federal Emergency Management Agency (FEMA) will be returning to the Community Center, Monday, May 15, 2023 through June 2, 2023, to open another Disaster Recovery Center (DRC) for those effected by the unprecedented snow storms this past winter.

Department Recommendations (Action Items)
a. 2022 General Plan Annual Progress Report.

Presenting staff member: Taylor Perry, City Planner.

Public Comment: None presented.

Moved by Gonzalez/Seconded by Strong and carried unanimously to adopt Resolution No. 2023-33 approving the 2022 General Plan Annual Progress Report. b. City of Willits General Plan Land Use Element Update Presentation by Planwest Partners, Inc.

Presenting staff member: Dusty Duley, Community Development Director.

John Miller of Planwest Partners Inc gave a PowerPoint presentation on the Planning effort of the Land Use Policy Areas.

Public Comment: Community members spoke in favor of the General Plan Land Use Element update.
c. Increase Appropriations to Facilitate the Transfer of Funds to Cover the Costs of the Airport Security Fence Project Totaling in The Amount Of $42,000.

Presenting staff member: Kenan O’Shea, Public Works Superintendent.

Willits City Council Minutes of May 10, 2023 Page 4 of 4 Moved by Gonzalez/Seconded by Stranske and Carried Unanimously to adopt Resolution No. 2023-34 to Transfer Funds for the Construction of a Security Fence Along the Northwestern Lot Line of the Airport Property. d. Discussion and Possible Action to Introduce and Waive the First Reading of Inclusion of County Ordinance, Title 10 Regulating Animal Control into the Willits Municipal Code (the Action Repeals Chapter 6.10 of the Willits Municipal Code).

Presenting staff member: Fabian Lizarraga, Police Chief.

Moved by Strong/Seconded by Gonzalez and carried Unanimously to approve the Introduction of an Ordinance Repealing and Replacing Chapter 6.10 of the City of Willits Municipal Code with County of Mendocino Ordinance, Title 10 Regulating Animal Control.

Public Comment: None presented.

10. Department Monthly Reports (Only the second meeting of each month).

None presented.

11. City Council Announcements, Communications and Reports None presented.

Public Comment: None presented.

12. Good & Welfare
 Councilmember Rodriguez announced the first Measure K meeting was held earlier that day.
 Jim Lance Reported that his first granddaughter was born three days ago, Ila Ann Lance.

13. Closed Session Notice
None Presented

14. Adjournment
Mayor Kanne declared the meeting adjourned at 10:16 p.m. _____________________________
GRETA KANNE, Mayor
City Council for the City of Willits
ATTEST:
__________________________

DELORES PEDERSEN
City Clerk
Permit Summary Report (Total Fees Paid)
Current
Month
April 2023
Month Last
Year
April 2022
Current Yr-ToDate
7/1/2022 -
4/30/2023
Last Yr-ToDate
7/1/2021 -
4/30/2022
Addition/Alteration
Count 3 5 110 38
Total Fees $502.25 $820.33 $53,746.03 $18,555.42
Fees Paid $502.25 $820.33 $53,746.03 $18,555.42
Total Valuation 19,145.00 40,300.00 3,679,564.84 955,137.44 Total Square Feet 0 0 22,394 6,418
Administrative $0.00 $0.00 $12,118.03 $4,411.53
BSF $3.00 $5.00 $206.00 $60.00
Building Department (OTC Permit
Fees)
$216.00 $539.00 $13,191.00 $3,306.00
Building Department (Permit Fees) $251.25 $214.25 $22,452.86 $9,220.75 Building Miscellaneous Fees $0.00 $0.00 $0.00 $0.00
GPM $26.80 $56.42 $5,046.77 $1,354.00
SMIP Commercial $4.20 $0.00 $511.78 $142.91
SMIP Residential $1.00 $5.66 $219.59 $60.23
New construction
Count 7 1 10 5
Total Fees $974.20 $1,294.35 $30,664.81 $8,323.90
Fees Paid $974.20 $1,294.35 $30,664.81 $8,323.90
Total Valuation 134,881.00 120,000.00 3,324,071.00 729,619.72 Total Square Feet 1,800 1,605 3,326 7,107
Administrative $199.22 $0.00 $5,180.81 $1,300.45
BSF $7.00 $5.00 $135.00 $32.00
Building Department (OTC Permit
Fees)
$270.00 $0.00 $270.00 $0.00
Building Department (Permit Fees) $306.50 $1,105.75 $16,149.58 $5,870.63 Building Miscellaneous Fees $0.00 $0.00 $3,483.60 $0.00 GPM $165.07 $168.00 $4,629.94 $1,021.46
SMIP Commercial $20.69 $0.00 $720.46 $8.40
SMIP Residential $5.72 $15.60 $95.42 $90.96
Total Count 10 6 120 43
Total Fees $1,476.45 $2,114.68 $84,410.84 $26,879.32
Total Fees Paid $1,476.45 $2,114.68 $84,410.84 $26,879.32 Total Valuation 154,026.00 160,300.00 7,003,635.84 1,684,757.16 Total Square Feet 1,800 1,605 25,720 13,525
Total Administrative $199.22 $0.00 $17,298.84 $5,711.98 Total BSF $10.00 $10.00 $341.00 $92.00
Total Building Department (OTC Permit
Fees)
$486.00 $539.00 $13,461.00 $3,306.00
Total Building Department (Permit
Fees)
$557.75 $1,320.00 $38,602.44 $15,091.38
To
tal BuildingMiscellaneousFees$0.00$0.00$3,483.60$0.00
Total GPM$191.87$224.42$9,676.71$2,375.46
Total SMIPCommercial $24.89$0.00$1,232.24$151.31
Total SMIPResidential $6.72$21.26$315.01$151.19
Item No. 9a
Meeting Date: May 24, 2023

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Manuel J. Orozco, Finance Director
Agenda Title: PRESENTATION BY BARTLE WELLS ASSOCIATES REGARDING the 2023 WATER AND WASTEWATER RATE STUDY. WITH DISCUSSION AND POSSIBLE AUTHORIZATION FROM COUNCIL TO MAIL CALIFORNIA PROPOSITION 218 NOTICES TO PROPERTY OWNERS OF PROPOSED RATE ADJUSTMENTS AND THE DATE AND TIME OF THE PUBLIC HEARING.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 20 minutes Summary of Request: Receive the Water and Wastewater Rate Study Draft Report and provide direction on the recommended rate adjustment and actions for the City’s water rate adjustment process including:

1. Direct staff to send a Notice of Public Hearing to City of Willits water and wastewater utility customers,

2. Approve rate adjustment timeline described herein, including public hearing date and recommended effective date of new water rates.

The Water and Wastewater Enterprise Funds account for all operational and capital expenditures needed to operate, maintain and improve these critical utility systems. The Funds operate without tax support as ratepayers sustain them.

It is necessary to evaluate these Funds periodically to ensure that the City recovers the cost of providing water and wastewater services. The City Council last adopted a multiyear rate plan for water and wastewater rates in 2017, setting rates for a five-year period through July 1, 2021. The 2017-21 rates for both the Water and Sewer Funds were based on a 10-year financial plan.

The City’s prior rate increases put the water and wastewater enterprises on a stronger financial footing but are not adequate to meet projected future operating and capital funding needs. During the COVID-19 Pandemic the City of Willits stalled the rate increases for 2020 and 2021, keeping rates at the 2019 levels for three-years to ease the burden caused by the pandemic. However, the recommendation from the consultant and staff is to have the City Council adopt five-year increases at rates necessary to meet current operational and infrastructure needs.

Over the past several months, Bartle Wells Associates collaborated with staff to evaluate the water and wastewater utility’s fixed, operational, and capital improvement priorities and to develop a comprehensive financial plan to adequately fund these costs over the next five years. The effort also evaluated alternative rate structures, reviewed how costs are allocated to customer classes and addressed other rate-related issues.

Bartle Wells Associates prepared a Water and Wastewater Rate Study Draft Report (Report). The Report is attached for reference. The Report includes a projection of each enterprises’ financial needs and a proposed rate plan for each utility for the fiscal years 2023/2024 – 2027/2028 for review by the Council.

Recommended Action: Authorize mailing of California Proposition 218 notices to property owners of proposed rate adjustments and the date and time of the public hearing.

Alternative(s): None recommended.

Fiscal Impact: Informational only, once the Rate Study is adopted then revenues will increase to support operations and reinvestments to the water production/distribution and wastewater systems.

Personnel Impact: Administration and Finance staff will accept additional responsibilities if the Council proceeds with the recommendation to proceed with Proposition 218 notification. 2021 Adopted Goals: This request fulfills Goal #1 under Public Works…Maintain and improve infrastructure systems of water, wastewater, public facilities and streets capable of managing future growth while responding to current City needs.

CITY OF WILLITS

WATER AND WASTEWATER

RATE STUDY

DRAFT REPORT
May 18, 2023
2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
May 19, 2023

City of Willits
111 E. Commercial St.

Willits, CA 95490
Attention: Brian Bender, City Manager
Re: Water and Wastewater Rate Study
Bartle Wells Associates is pleased to submit to the City of Willits (City) the attached Draft Water and Wastewater Rate Study. The study presents BWA’s analysis of the operating and non-operating expenses of the City’s water and sewer funds and provides five-year cash flow projections and rates. The primary purpose of this study was to analyze the City’s water & sewer enterprise funds and make recommendations that would achieve their financial sustainability.

BWA finds that the rates and charges proposed in our report reflect the cost-of-service for each customer, follow generally accepted rate design criteria, and adhere to the substantive requirements of Proposition 218. BWA believes the proposed rates are fair and reasonable to the City’s customers.

We have enjoyed working with the City on this rate study and appreciate the assistance of Andrea, Scott, Manuel and other City staff members throughout the project. Please contact us with any future questions about this study and the rate recommendations.

Please contact us with any future questions about this study and the recommended water rates.

Sincerely,
Douglas Dove, PE, CIPMA Erik Helgeson, MBA
Principal/ President Vice President
Contents
1 Executive summary........................................................................................1

1.1 Introduction 1

1.2 Rate Study Objectives .................................................................................................................. 1

1.3 Water Rate Recommendations per Scenario............................................................................... 1 2 Background, Objectives, and Legal Requirements..........................................3

2.1 Rate Study Objectives .................................................................................................................. 3

2.2 Rate-Study Process....................................................................................................................... 4

2.3 Constitutional Requirements for Rates........................................................................................ 4

2.3.1 Article 13D, Section 6................................................................................................................... 4

2.3.2 Article 10, Section 2 ..................................................................................................................... 5

2.4 Statute of Limitations................................................................................................................... 5 3 Projected Water Demand and Customer Characteristics................................6

3.1 Projected Water Demand ............................................................................................................ 6

3.2 Water Services and Equivalent Capacity...................................................................................... 6 4 Water Financial Plan......................................................................................8

4.1 Water Financial Overview............................................................................................................ 8

4.2 Key Drivers of Rate Increases....................................................................................................... 8

4.3 Financial Plan Assumptions.......................................................................................................... 9

4.4 Cash Flow Projections.................................................................................................................. 9 5 Cost-of-Service Rate Derivation ...................................................................12

5.1 Base-Extra Capacity Cost Allocation........................................................................................... 13

5.2 Functional Allocation ................................................................................................................. 13

5.3 Water Rate Derivation ............................................................................................................... 15

5.4 Private Fire Line Charge Derivation............................................................................................ 17

5.5 Proposed Water Rates ............................................................................................................... 18 6 Regional Residential Bill Comparison...........................................................19 7 WasteWater Financial Plan..........................................................................19

7.1 Wastewater Financial Overview ................................................................................................ 19

7.2 Key Drivers of Rate Increases..................................................................................................... 20

7.3 Financial Plan Assumptions........................................................................................................ 20

7.4 Cash Flow Projections................................................................................................................ 21

7.5 Cash Flow Projection Scenarios ................................................................................................. 21

7.6 Cash Flow Projection for Scenario 1 – Baseline CIP ................................................................... 22

7.7 Cash Flow Projection for Scenario 2 - Full Capital with New Debt ............................................ 25 8 Wastewater Cost of Service Analysis and Rate Derivation ...........................28

8.1 Flows and Loadings.................................................................................................................... 29

8.2 Functional Allocation ................................................................................................................. 29

8.3 Flow and Strength Revenue Requirement by Class................................................................... 31

8.4 Domestic Rate Derivation .......................................................................................................... 33

8.5 Non-Residential Volumetric Rate Derivation........................................................................... 333

8.6 Proposed Wastewater Rates.................................................................................................... 355

8.7 Regional Wastewater Rate Survey........................................................................................... 366 Appendix A - Water Rate Study Tables
Appendix B - Wastewater Rate Study Tables

LIST OF TABLES
Table 1 – Proposed Water Rates...............................................................................................................................2 Table 2 – Historic and Projected Metered Demand .................................................................................................6 Table 3 – Water Customers and Equivalent Demand Units.....................................................................................7 Table 4 –Detailed Cash Flow Projections............................................................................................................... 11 Table 5 – Functional Allocation .............................................................................................................................. 15 Table 6 – Water Rate Derivation............................................................................................................................ 16 Table 7 – Private Fire Line Charge Derivation........................................................................................................ 17 Table 8 – Proposed Water Rates............................................................................................................................ 18 Table 9 – Scenario 1, Baseline CIP Detailed Cashflow........................................................................................... 24 Table 10 – Scenario 2 Detailed Cash Flow Projections.......................................................................................... 27 Table 12 – Wastewater Flows and Loading ........................................................................................................... 29 Table 13 – Scenario 1, Functional Cost Allocation................................................................................................. 30 Table 14 – Scenario 2 Functional Cost Allocation.................................................................................................. 31 Table 15 – Scenario 1, Flow and Strength Revenue Requirement by Class.......................................................... 32 Table 16 – Scenario 2, Flow and Strength Revenue Requirement by Class.......................................................... 32 Table 17 – Scenario 1, Domestic Rate Derivation.................................................................................................. 33 Table 18 – Scenario 2, Domestic Rate Derivation.................................................................................................. 33 Table 19 – Scenario 1, Non-Residential Billable Flows and Loading ..................................................................... 33 Table 20 – Scenario 1, Revenue Requirements ..................................................................................................... 34 Table 21 – Scenario 2, Revenue Requirements ..................................................................................................... 34 Table 22 – Scenario 1, Non-Residential Rate Derivation....................................................................................... 34 Table 23 – Scenario 2, Non-Residential Rate Derivation....................................................................................... 35 Table 24 – Scenario 1, Proposed Wastewater Rates............................................................................................. 35 Table 25 – Scenario 2, Proposed Wastewater Rates............................................................................................. 36 Table 26 – Sewer Rate Survey ................................................................................................................................ 36

LIST OF FIGURES
Figure 1 – Cost-of-Service Rate Study Process..........................................................................................................4 Figure 2 –Projected Cashflow Graph...................................................................................................................... 10 Figure 3 – Residential Bill Comparison................................................................................................................... 19 Figure 4 – Scenario 1, Baseline CIP Spending......................................................................................................... 22 Figure 5 – Scenario 1, Baseline CIP Cashflow......................................................................................................... 23 Figure 6 – Scenario 1, Baseline CIP Spending......................................................................................................... 25 Figure 7 – Scenario 2 Projected Cashflow Graph................................................................................................... 26 Figure 4 – WW Cost of Service Analysis and Rate Derivation Process.................................................................. 28 BARTLE WELLS ASSOCIATES 1 | P a g e
City of Willits – Water Rate Study 2023
1 EXECUTIVE SUMMARY

1.1 Introduction
The City retained Bartle Wells Associates to develop a long-term financial plan and 5-year rate recommendations for the water and wastewater enterprises.

The revenues from the City’s water and wastewater enterprises are primarily derived from charges for services.

The City must establish rates and charges adequate to fund the cost of providing services, which includes costs for operations and maintenance, as well as capital improvements needed to keep the City’s utility infrastructure in a safe and reliable operating condition.

The City has provided proactive financial stewardship by raising rates to keep revenues in line with the costs of providing water service. Those rate increases have enabled the City to maintain its financial health. The prior water rate increases strengthened the financial condition of the water enterprise. However, current rates are not adequate to fund the needed improvements and meet regulatory water quality and supply requirements.

1.2 Rate Study Objectives
Key goals and objectives of this study include developing rates that:
• Recover the costs of providing service, including operating, capital, and debt funding needs; • Are proportionate, fair, and equitable to all customers; • Are easy to understand and implement;
• Comply with the substantive requirements of the California Constitution, Article 13D, Section 6 (which was adopted by the voters as Proposition 218 in 1996) and the general mandate of Article 10, Section 2 that prohibits the wasteful use of water;
• Support the long-term operational and financial stability of the City.

BWA worked closely with City staff to incorporate information and input, evaluate alternatives, and develop recommendations. This report summarizes key findings and recommendations for water rates over the next five years.

1.3 Water Rate Recommendations per Scenario
The following tables show the recommended water rates for each scenario.

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City of Willits – Water Rate Study 2023
Table 1 – Proposed Water Rates
Monthly Volumetric
Rates FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Existing Proposed Proposed Proposed Proposed Proposed
Non-Drought ($/CCF) $2.02 $2.11 $2.20 $2.30 $2.40 $2.51 Drought ($/CCF) $2.45 $2.56 $2.68 $2.80 $2.93
Monthly Fixed Charge FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Existing Proposed Proposed Proposed Proposed Proposed
Meter Size
5/8" $25.44 $26.48 $27.67 $28.92 $30.22 $31.58
3/4" $25.44 $26.48 $27.67 $28.92 $30.22 $31.58
1" $36.83 $38.56 $40.30 $42.11 $44.00 $45.98

1.5" $65.32 $68.74 $71.83 $75.06 $78.44 $81.97
2" $99.50 $104.96 $109.68 $114.62 $119.78 $125.17
3" $207.73 $219.66 $229.54 $239.87 $250.66 $261.94
4" $367.24 $388.68 $406.17 $424.45 $443.55 $463.51
6" $748.90 $793.14 $828.83 $866.13 $905.11 $945.84
8" $1,375.53 $1,457.17 $1,522.74 $1,591.26 $1,662.87 $1,737.70 10" $2,173.05 $2,302.31 $2,405.91 $2,514.18 $2,627.32 $2,745.55 12" $2,856.63 $3,026.71 $3,162.91 $3,305.24 $3,453.98 $3,609.41 BARTLE WELLS ASSOCIATES 3
City of Willits – Water Rate Study 2023
2 BACKGROUND, OBJECTIVES, AND LEGAL REQUIREMENTS
The City of Willits lies in the heart of Mendocino County at the edge of the Jackson State Forest. The City was incorporated in 1888 and became a charter city in 1947. The City provides water and wastewater service to over 2,900 accounts, serving a population of approximately 6,000 people who live both in and adjacent to the City.

The revenues from the City’s water and sewer utilities are primarily derived from charges for services. The City must establish rates and charges adequate to fund the cost of providing water and wastewater services, including costs for operations and capital improvements needed to keep City’s utility infrastructure in safe and reliable operating condition.

Rates were last increased in 2019. Based on a survey of regional water and sewer agencies, the City’s sewer rates are close to the regional average rate and the City’s water rates are higher than the regional average.

The City’s water utility is a financially self-supporting enterprise. Revenues are derived primarily from water service charges. As such, the City’s water rates must be set at adequate levels to fund the costs of providing service and:
• Fund ongoing operating and maintenance expenses
• Address regulatory requirements
• Fund the capital improvement projects, related debt service and associated increased operating costs • Provide funding for water system maintenance and upgrades The prior water rate increases strengthened the financial condition of the water enterprise. However, current rates are not adequate to fund the needed improvements and meet regulatory water quality and supply requirements.

2.1 Rate Study Objectives
In 2022, the City retained BWA to develop a cost-of-service based water rate study. The City has historically adopted rate increases in order to keep revenues in line with the escalating costs of providing service. Key goals and objectives of this study include developing water rates that:
• Recover the costs of providing service, including operating, capital, and debt funding needs; • Are proportionate, fair and equitable to all customers; • Are easy to understand and implement;
• Comply with the substantive requirements of the California Constitution, Article 13D, Section 6 (which was adopted by the voters as Proposition 218 in 1996) and the general mandate of Article 10, Section 2 that prohibits the wasteful use of water;
• Support the long-term operational and financial stability of the City both in normal and drought conditions.

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City of Willits – Water Rate Study 2023

2.2 Rate-Study Process
The general process used for this cost-of-service rate study is summarized in the following diagram.

Figure 1 – Cost-of-Service Rate Study Process
Key elements of the study include:
1) Project Initiation and Data Collection – Review financial policies; collect financial and other relevant data; and review rate structures;
2) Demand Analysis – Analyze past water demands and customer characteristics to forecast future demands; 3) Long Range Financial Plans – Develop financial projections to evaluate annual revenue requirements from rates and the overall level of rate increases needed to fund the costs of providing service and support longterm financial stability; 4) Cost Allocation – Group the City’s costs in terms of the function they serve as a basis to proportionally allocate the revenue requirement from rates;
5) Cost-of-Service Rate Design – Develop rates that proportionately recover costs; and 6) Prop 218 Process – Ensure compliance with the substantive and procedural requirements of Proposition 218.

2.3 Constitutional Requirements for Rates
The water rates proposed in this report are designed to comply with two key articles of the California Constitution:

Article 13D and Article 10, as explained below.

2.3.1 Article 13D, Section 6
Proposition 218 was adopted by California voters in 1996 and added Articles 13C and 13D to the California Constitution. Article 13D, Section 6 governs property-related charges, which the California Supreme Court has ruled, includes rates imposed for water delivered through pipes connected to property. Article 13D, Section 6 establishes both a) procedural requirements for imposing or increasing property-related charges, and b) Project
Initiation
and Data
Collection
Demand
Analysis
LongRange
Financial
Plan
Cost
Allocation
Rate
Design
Prop. 218
Process
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City of Willits – Water Rate Study 2023
substantive requirements for those charges. Article 13D requires voter approval for new or increased propertyrelated charges but exempts rates for water, wastewater, and garbage service from this voting requirement if rates are adopted by the appropriate procedure and meet the substantive requirements. This report recommends water rates designed to comply with the substantive requirements of Proposition 218.

The substantive requirements of Article 13D, section 6 requires property-related charges, such as the City’s water rates, to meet the following conditions:
1) Revenues derived from the fee or charge shall not exceed the costs required to provide the propertyrelated service. 2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. 4) No fee or charge may be imposed for a service unless that service is used by, or immediately available to the property in question.
5) No fee or charge may be imposed for general governmental services, such as police or fire services, where the service is available to the public at large in substantially the same manner as it is to property owners.

2.3.2 Article 10, Section 2
Article 10, Section 2 of the California Constitution states that:

It is hereby declared that because of the conditions prevailing in this State the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for the public welfare.

2.4 Statute of Limitations
Pursuant to California Government Code 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fees. This statute of limitations applies to the water rates proposed in this rate study and is included in the Proposition 218 Notice.

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City of Willits – Water Rate Study 2023
3 PROJECTED WATER DEMAND AND CUSTOMER CHARACTERISTICS

3.1 Projected Water Demand
BWA uses a conservative approach when forecasting water use and growth projections in order to ensure the City is not dependent on population growth and water demand recovering from the recent drought. Projected FY 23/24 water demand is based on the average metered demand for the last five fully recorded years. Customer growth is based on the City’s knowledge of current development projects.

Table 2 – Historic and Projected Metered Demand

3.2 Water Services and Equivalent Capacity
The size of a customer’s meter reflects the demand they require of the water system’s capacity. A significant percentage of the costs of any water system is related to its requirement to deliver water to any customer instantaneously at any time, up to the maximum safe flow capacity of a customer’s meter. Simply put, as the size of a customer’s water meter increases, the instantaneous demand it can place on the City’s water system increases. An equivalent demand unit (EDU) is the ratio of any meter’s safe maximum flow to that of a 1” meter’s.

The safe maximum flow is based on the American Water Works Association’s meter service equivalent standards.

The proposed fixed rates by meter size are determined based on the number of EDU’s. The following Table shows the current number of water accounts by meter size and the corresponding equivalent demand units.

Annual Metered
Consumption (CCF) FY 21/22 FY 22/23 FY 23/24
Actual Projected Projected
Residential Demand 146,901 146,901 146,901
Nonresidential Demand ________ ________ ________ 109,752 109,752 109,752 Total Demand 256,653 256,653 256,653
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City of Willits – Water Rate Study 2023
Table 3 – Water Customers and Equivalent Demand Units

Residential
Meter Size Customers Capacity Factor EDUs
5/8" 1,860.0 1.0 1,860.0
3/4" 52.0 1.5 78.0
1" 15.0 2.5 37.5
Total 1,927.0 1,975.5
Nonresidential
Meter Size Customers Capacity Factor EDUs
5/8" 225.0 1.0 225.0
3/4" 9.0 1.5 13.5
1" 67.0 2.5 167.5
1 1/2" 23.0 5.0 115.0
2" 47.0 8.0 376.0
3" 3.0 16.0 48.0
4" 1.0 25.0 25.0
6" 1.0 50.0 50.0
8" 80.0
Total 376.0 155 1,020.0
Fire
Meter Size Customers Capacity Factor EDUs
4" - Fire Protection 21.0 25.0 525.0
6" - Fire Protection 10.0 50.0 500.0
8" - Fire Protection 11.0 80.0 880.0
Total 42.0 1,905.0
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City of Willits – Water Rate Study 2023
4 WATER FINANCIAL PLAN

4.1 Water Financial Overview
BWA conducted an independent evaluation of water enterprise finances and concluded the previous rate increases have put the water enterprise in a sound financial position. Continual, gradual increases are projected to maintain its strong financial position.

The City relies almost solely on revenues from water rates to fund the costs of providing service. As such, water rates must be set at levels adequate to fund the costs of operating and maintaining the water system, fund necessary capital improvements to keep the water system in good operating condition.

4.2 Key Drivers of Rate Increases
The City is facing several manageable financial challenges that will drive the need for rate increases in upcoming years. Key drivers of future rate increases are summarized below.

Capital Improvement Funding Needs
The City’s water system requires a steady stream of repair and improvement projects. Accounting for construction cost inflation, the City anticipates funding approximately $6.1 million of capital improvement projects over the next 5 years.

Ongoing Operating Cost Inflation
The City faces annual cost inflation due to annual increases in a range of expenses including staffing, utilities, insurance, supplies, etc. On top of rate increases needed for capital improvements, annual rate increases are needed to keep revenues aligned with cost inflation and prevent rates from falling behind the cost of providing service. Water cost inflation has historically been higher than the Consumer Price Index (CPI) for consumer goods and services. Historically inflation has typically remained consistently around 3%, but recently inflation has reached forty-year highs with the CPI and ENR CCI exceeding 7% in 2022. It is not expected that inflation will remain at such high levels in the future and for the purposes of this rate study average annual inflation is projected to be 5%; in-line with the City’s budget inflationary projections.

Water Reserve Funds
Maintaining a prudent minimal level of fund reserves provides a financial cushion for dealing with unanticipated expenses, revenue shortfalls, and non-catastrophic emergency capital repairs. BWA developed a financial plan designed to maintain prudent reserve levels that are in-line with water utility industry standards.

Debt Service Coverage
Most municipal debt requires that the issuer generate net operating revenues of 1.25 times the total annual debt service payment or greater. This is referred to as “debt service coverage”. To support a strong credit rating and good financial health, the current BWA recommendsthe City maintain a minimum debt coverage ratio of 1.3 times the annual payment or greater.

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City of Willits – Water Rate Study 2023

4.3 Financial Plan Assumptions
The financial projections incorporate the latest information available and a number of reasonable and slightly conservative assumptions for planning purposes. Key assumptions include:

Revenue Assumptions
• Water rate revenues are based on estimated revenues for the current fiscal year. • Rates proposed to be adopted in July 2023 will be effective on August 1, 2023, with rate adjustments planned to become effective on July 1 of each of the subsequent four years. • To be conservative and ensure revenues will be sufficient, BWA assumed no annual growth. • Interest earnings are projected based on the annual beginning fund balance multiplied by the projected interest rate. The interest rate projections are based on recent and anticipated interest rates.

Expense Assumptions
• Operating and maintenance costs are primarily based on the 2023/24 budget. • Operating costs are projected to escalate at 5% per year to account for cost inflation. • Debt service projections are based on outstanding debt schedules and projected issuances of new debt. • Capital improvement costs are based on the most recent engineering cost estimates. Capital costs include a 5% annual construction cost inflation factor for the next five years.

4.4 Cash Flow Projections
Long-term cash-flow projections were developed based on assumptions and key drivers of future rate increases described above. The projections were used to determine the water utility’s annual revenue requirements and project required water rate revenue increases. The long-term cash-flow projections incorporate the latest information available from the City’s budget, annual reports, capital spending projections, and metered water demand data, as well as a number of reasonable assumptions developed with input from the City. The overall rate revenue increases shown for each of the following scenarios are designed to fund the City’s cost of providing service, maintain roughly balanced budgets, maintain healthy debt service coverage, and maintain prudent reserves. The projections indicate the need for increases for water rate revenues for each of the next five fiscal years. Actual impacts to customers’ water bills will vary based on meter size and water use, due to the outcome of the updated cost-of-service analysis.

In future years, the City can re-evaluate its finances and revenue requirements and adjust rates as needed based on updated projections. However, while the City always has the flexibility to implement rate adjustments that are lower than adopted pursuant to Proposition 218, future rates cannot exceed adopted increases without going through the Proposition 218 process again. Rates adopted pursuant to Proposition 218 are essentially future rate caps.

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City of Willits – Water Rate Study 2023
The following figure visually depicts the cash-flow projections with the proposed rate increases for the next five years. Projected expenses are summarized into key categories. The figure also shows the projected fund reserves at the end of each fiscal year.

Figure 2 –Projected Cashflow Graph
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Funded Capital
Debt Service
O&M
Revenue
Reserves
City of Willits
Projected Water Revenues & Expenses ($ Millions)
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City of Willits – Water Rate Study 2023
Detailed, long-term, cash-flow projections for this scenario are shown in the following table.

Table 4 –Detailed Cash Flow Projections
Water Fund FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Reserves
Beginning Reserves $4,300,000 $4,327,089 $3,063,370 $2,916,121 $3,032,247 $3,246,148 Revenue Escalation
Rate Revenue Increase 6.5% 6.5% 6.5% 6.5% 6.5%
Revenues
Operating Revenue
User Charge Revenue $2,954,546 $2,954,546 $3,146,591 $3,351,119 $3,568,942 $3,800,923 Additional Revenue $192,045 $204,528 $217,823 $231,981 $247,060 Other Revenue 86,125 86,125 67,000 67,000 67,000 67,000 Interest on Reserves ________ ________ ________ ________ ________ ________ $10,952 $11,019 $7,860 $7,492 $7,782 $8,317 Total Operating Revenue $3,051,622 $3,243,735 $3,425,979 $3,643,434 $3,875,706 $4,123,300 Non-Operating Revenue
Grant Revenue $452,210
Use of Debt Proceeds ________ ________ ________ ________ ________ ________ $600,000 $400,000 $1,400,000 $1,200,000 Total Non-Operating Revenue $0 $452,210 $600,000 $400,000 $1,400,000 $1,200,000 Total Revenue $3,051,622 $3,695,945 $4,025,979 $4,043,434 $5,275,706 $5,323,300 Expenses
Total Operating Expenses $2,793,614 2,793,745 2,931,810 3,078,401 3,232,321 3,393,937 Non-Operating Expenses
Capital $125,000 $2,060,000 $1,092,000 $655,988 $1,528,065 $1,330,979 Existing Debt Service 105,919 105,919 105,919 105,919 105,919 105,919 New Debt Service ________ ________ ________ ________ ________ ________ $0 $0 $43,500 $87,000 $195,500 $304,000 Total Non-Operating Expenses $230,919 $2,165,919 $1,241,419 $848,906 $1,829,484 $1,740,898 Total Expenses $3,024,533 $4,959,664 $4,173,229 $3,927,307 $5,061,805 $5,134,835 Net Revenues $27,089 -$1,263,719 -$147,250 $116,127 $213,901 $188,465 Ending Reserves $4,327,089 $3,063,370 $2,916,121 $3,032,247 $3,246,148 $3,434,613 Debt Service Coverage (Target 1.3) 2.44 4.25 3.31 2.93 2.13 1.78 BARTLE WELLS ASSOCIATES 12
City of Willits – Water Rate Study 2023
5 COST-OF-SERVICE RATE DERIVATION
Article XIII D, Section 6 of the California Constitution (which was adopted by the voters in 1996 as a part of Proposition 218) requires that the City adopt only rates that meet a number of substantive requirements.

Specifically:
(1) Revenues derived from the water rates cannot exceed the funds required to provide water service. (2) Revenues derived from the water rates cannot be used for any purpose other than providing water service.
(3) The amount of the water rates imposed upon any parcel or person as an incident of property ownership cannot exceed the proportional cost of the service attributable to the parcel. (4) Water rates may not be imposed unless the water service is used by, or immediately available to, the owner of the property in question.

Each water customer in the City is charged both a monthly fixed rate and a volumetric rate based on the quantity of water delivered by the City to the customer. This reflects that (i) some system costs are based entirely on the actual quantity of water consumed, (ii) other system costs are fixed from the point of view of the City, but are a result of design decisions that were made to accommodate all users, including high-demand users, and (iii) some costs, particularly the cost of administering the water system, would be largely the same regardless of the volume of water use.

Water utilities have employed a wide range of approaches or perspectives for allocating and recovering their costs for providing service, often through a combination of fixed and variable charges. The percentage of revenues derived from the fixed and variable charges should be proportional to each system’s expenditures and must not exceed the cost of providing service.

Many of the City’s costs are fixed costs that do not vary by the level of service provided, such as operational and staff costs, as well as costs for building and maintaining infrastructure. Some of these costs are related to the number of customers, but most of the fixed costs are related to the total capacity of the water system. Fixed costs related to system capacity can reasonably be apportioned by meter size or variable, usage-based rate recovery in recognition that both units of measure reasonably reflect customer usage driving the City to incur capacity-related costs. For example, a share of the fixed cost of salaries related to water production can reasonably be recovered from usage-based charges as these costs are incurred to provide water supply to meet customer demand or from a fixed charge based on a customer’s meter size which reflects the magnitude of water a customer can pull from the water system. Likewise, debt service payments may be fixed annual costs, but it is reasonable to recover some of these costs from usage-based rates as the costs are incurred to fund infrastructure that will improve the water delivery system.

While there is no single correct approach, BWA believes that costs should be allocated within a reasonable range that reflects both a) underlying cost causation, to the extent such causation can reasonably be determined or BARTLE WELLS ASSOCIATES 13
City of Willits – Water Rate Study 2023
estimated, and b) the policy preferences of the agency in cases where a range of reasonable approaches can be justified.

5.1 Base-Extra Capacity Cost Allocation
The American Water Work Association (AWWA) is the largest association of water professionals in the world.

AWWA publishes the M1 Manual, titled "Principles of Water Rates, Fees, and Charges," which is widely recognized as the preeminent resource for setting water rates. The manual is consistently revised by leading professionals in the industry to incorporate the latest industry best practices and meet regulatory requirements.

The AWWA M1 Manual outlines two methods for deriving water rates, the base-extra capacity and commodity demand method. Both methods recognize that the cost of serving a customer depends not only on the total volume of water used, but also on peak-demand requirements.

The proposed rates presented within this rate study are developed using a base-extra capacity method. The baseextra capacity method was chosen because it ensures that customers with higher levels of water use, who place more demands on the water supply system, pay a proportionate share of the costs associated with providing that additional capacity. It also encourages conservation and ensures that those who use more water pay for the additional infrastructure, maintenance, and other costs required to meet their annual needs over the long term.

By allocating the incremental costs of providing extra-capacity in the system to those customers whose use necessitates it, the base-extra capacity method ensures that rates for average and below-average users do not include costs for capital investments and imported water supplies that they do not require. This method also provides an incentive for customers to conserve water, as they can reduce their bills by reducing their usage, while ensuring that the water system can continue to provide reliable service to all customers.

In using the base-extra capacity method, costs are typically separated into four cost components: (1) Base (average), (2) Extra Capacity, (3) Customer, and (4) Fire. As noted in the AWWA M1 Manual, in detailed rate studies, such as the one performed for this rate study, some of these elements might be broken down further into two or more subcomponents.

5.2 Functional Allocation
There must be a cost-based nexus between the revenue requirement from the cash flow and the proposed rates.

The nexus is created by allocating the expenses and offsetting non-rate revenues to functional components and then dividing each functional component’srevenue requirements by the allocations units most reasonably related to each function. A functional component reflects a grouping of the utility’s expenses whose magnitude is driven by the quantity of a specific unit-of-measure. For example, costs allocated to the customer functional component are driven by the number of customers served by the water enterprise.

The functional components used in this study are as follows:
• Capacity - Fixed costs are recovered per customer. Fixed costs or costs related to system capacity were allocated to this category.

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City of Willits – Water Rate Study 2023
• All Volume - Costs reasonably recovered volumetrically were allocated to this category. Volumetric costs are recovered per unit of volume (100 cubic feet (CCF)) based on all projected demand. • Base - Costs related to average volumetric use were allocated to this category. Volumetric costs are recovered per unit of volume (100 cubic feet (CCF)) based on all projected demand. • Peak - Costs related to peak volumetric use were allocated to this category. Volumetric costs are recovered per unit of volume (100 cubic feet (CCF)) based on all projected demand.

Related expenses and non-rate revenues were grouped into the following allocation categories before being allocated to each functional category:
• Distribution expenses include the operating and projected cash funded capital and additional debt service related to the City’s potable water distribution systems. These costs are recovered partially from Capacity, Average and Peak categories because the distribution system is sized for peak capacity. • Ground Water expenses include the operating and projected cash funded capital and additional debt service related to the pumping and treatment of ground water. These costs are recovered partially from Capacity, All Volume, Average and Peak categories because some costs are related to peak demand and some costs are incurred on a per unit basis.
• Surface Water expenses include the operating and projected cash funded capital and additional debt service related to the import and treatment of surface water. These costs are recovered partially from Capacity, All Volume, Average and Peak categories because some costs are related to peak demand and some costs are incurred on a per unit basis.
• Administration - Expenses and non-rate revenues were allocated 100% capacity functional component. • Storage - expenses consist of cash funded capital and additional debt service related to the construction of new storage tanks. These costs are recovered partially from Capacity, Average and Peak categories because the distribution system is sized for peak capacity.
• General Capital - expenses and non-rate revenues are allocated 50% to Capacity and 50% to All Volume because these costs are related to the overall capacity of the system which is driven by the projected volume of water sold.
• Debt - allocated 50% to Capacity and 50% to All Volume because these costs are related to the overall capacity of the system which is driven by the projected volume of water sold.

The following tables show a breakdown of the water utility’s expenses and offsetting revenues and how they are allocated by function. The proportional allocation is then applied to the rate revenue requirement so that the rates are proportional to the cost of service provided. To recover the allocated revenue requirements proportionally to the service provided, a unit cost must be derived. Critical to this step is using the unit which relates to the function. The allocation amounts are based on an average of the expenses over the next five years.

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City of Willits – Water Rate Study 2023
Table 5 – Functional Allocation

5.3 Water Rate Derivation
Monthly Fixed Service Charges
This charge applies to all active services. It recovers the Capacity functional component revenue requirement on a per EDU basis. The EDU varies by meter size. EDU ratios are based on the AWWA meter equivalent ratio for each meter size.

Monthly Water Use Charges
These charges apply to every unit of water sold. It recovers the All Volume functional component revenue requirement on a unit (CCF) basis. Non-residential have a uniform volumetric rate while residential customers have a two-tier rate structure.

The following table shows the water rate allocation units and total revenue requirement by functional component and the derivation of rates. Volumetric rates for each class and tier are calculated based on the actual volumes of average and peak use water billed in the previous year.

Allocation Category Expenses
Offsetting
Revenues
Allocation
Amount Capacity All Volume Average Peak Total
Distribution $1,108,161 $1,108,161 15% 58% 27% 100%
Surface Water $1,266,353 $1,266,353 15% 30% 38% 17% 100% Ground Water $219,939 $219,939 15% 30% 38% 17% 100%
Administration $622,514 $12,994 $609,520 100% 100%
Storage $258,530 $258,530 15% 58% 27% 100%
General Capital $351,188 $21,325 $329,863 50% 50% 0% 0% 100% Existing Debt $105,919 $105,919 50% 50% 0% 0% 100%
Functional Allocation $ $1,255,359 $663,779 $1,355,320 $623,827 $3,898,285 Functional Allocation % 32.20% 17.03% 34.77% 16.00% 100.00% Rate Revenue $3,146,591
Private Fire Allocation $123,474
Revenue Requirement $973,530 $514,760 $1,051,050 $483,778 $3,023,117 Projected 5-Year
Average
BARTLE WELLS ASSOCIATES 16
City of Willits – Water Rate Study 2023
Table 6 – Water Rate Derivation
Allocation Units Capacity All Volume Average Peak

EDU CCF CCF
Residential Demand 1,976 146,901 130,455 16,446
Nonresidential Demand 1,020 109,752 96,874 12,878
Total Allocation Units 2,996 256,653 227,329 29,324
Revenue Requirement $973,530 $514,760 $1,051,050 $483,778 Unit Cost $325.00 $2.01 $4.62 $16.50
Volumetric Tier
Rate Calculation
%
Demand Demand Unit Rate
Revenue
Requirement
Volumetric
Rate
Residential Rate Derivation
Tier 1 (0-6 CCF) 60.0% 88,141 $584,372.18 $6.63
Average 100.0% 88,141 $6.63 $584,372.18
Peak 0.0% - $18.51 $0.00
Tier 2 (>6 CCF) 40.0% 58,760 $584,959.93 $9.96
Average 72.0% 42,314 $6.63 $280,544.47
Peak 28.0% 16,446 $18.51 $304,415.46
Nonresidential Rate Derivation
Uniform Rate 109,752 $880,646.40 $8.02
Average 96,874 $6.63 $642,274.62
Peak 12,878 $18.51 $238,371.78
Fixed Charge
Calculation
Customer
Charge
Monthly
Charge
Meter Size
5/8" $325.00 $27.08
3/4" $487.50 $40.63
1" $812.50 $67.71
1 1/2" $1,625.00 $135.42
2" $2,600.00 $216.67
3" $5,200.00 $433.33
4" $8,125.00 $677.08
6" $16,250.00 $1,354.17
8" $26,000.00 $2,166.67
BARTLE WELLS ASSOCIATES 17
City of Willits – Water Rate Study 2023

5.4 Private Fire Line Charge Derivation
The following table shows the derivation of the monthly private fire line charge.

Table 7 – Private Fire Line Charge Derivation
Fire Connection Size Connections Capacity Factor EFU
Hydrants 321.0 50.0 16,050.0
4" - Fire Protection 21.0 25.0 525.0
6" - Fire Protection 10.0 50.0 500.0
8" - Fire Protection 11.0 80.0 880.0
Private Fire Subtotal 42.0 1,905.0
Total 363.0 17,955.0
Private Fire Charge
Calculation EFU
Annual Revenue 3,232,716
Main Utility Curve Ratio 0.22
Gross Revenue % 36%
Fire Revenue Requirement $1,163,777.75
Fire Revenue Requirement per EFU $64.82
PrivateCharge Calculation Capacity Factor Annual Rate Monthly Rate 4" - Fire Protection 25.0 $1,620.41 $135.03
6" - Fire Protection 50.0 $3,240.82 $270.07
8" - Fire Protection 80.0 $5,185.31 $432.11
BARTLE WELLS ASSOCIATES 18
City of Willits – Water Rate Study 2023

5.5 Proposed Water Rates
The following tables show a 5-year schedule of proposed water rates for each scenario.

Table 8 – Proposed Water Rates
Volumetric Rates FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Existing Proposed Proposed Proposed Proposed Proposed
Single-Family Residential
Existing Structure Proposed Structure
(0-5 CCF) $0.00 (All Use) $5.75 $6.04 $6.35 $6.67 $7.01 (6-12 CCF) $4.77
(>12 CCF) $7.97
Non-Residential
Existing Structure Proposed Structure
(0-5 CCF) $0.00 (All Use) $5.75 $6.04 $6.35 $6.67 $7.01 (>5 CCF) $5.55
Monthly Fixed
Rates All
Customers FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Meter Size Existing Proposed Proposed Proposed Proposed Proposed 5/8" $53.09 $32.30 $33.92 $35.62 $37.41 $39.29
3/4" $53.09 $32.30 $33.92 $35.62 $37.41 $39.29
1" $53.09 $32.30 $33.92 $35.62 $37.41 $39.29
1 1/2" $88.34 $64.60 $67.83 $71.23 $74.80 $78.54
2" $130.64 $103.36 $108.53 $113.96 $119.66 $125.65
6" $722.87 $646.00 $678.30 $712.22 $747.84 $785.24
BARTLE WELLS ASSOCIATES 19
City of Willits – Water Rate Study 2023
6 REGIONAL RESIDENTIAL BILL COMPARISON
The following charts compare the water and sewer bills for a typical single-family home to those of other regional agencies. Rates can vary widely from agency to agency due to a wide range of factors. The survey shown is for comparative purposes only.

Figure 3 – Residential Bill Comparison
7 WASTEWATER FINANCIAL PLAN

7.1 Wastewater Financial Overview
BWA conducted an independent evaluation of wastewater enterprise finances and concluded the previous rate increases have put the water enterprise in a sound financial position. Continual, gradual increases are projected to maintain its strong financial position.

The City relies almost solely on revenues from water rates to fund the costs of providing service. As such, wastewater rates must be set at levels adequate to fund the costs of operating and maintaining the water system, fund necessary capital improvements to keep the water system in good operating condition.

BARTLE WELLS ASSOCIATES 20
City of Willits – Water Rate Study 2023

7.2 Key Drivers of Rate Increases
The City is facing several manageable financial challenges that will drive the need for rate increases in upcoming years. Key drivers of future rate increases are summarized below.

Capital Improvement Funding Needs
The City takes a proactive approach to maintaining its water system, which requires ongoing repair and improvement projects. This report explores the financial plan and rates for two different capital scenarios.

Wastewater Reserve Funds
Maintaining a prudent minimal level of fund reserves provides a financial cushion for dealing with unanticipated expenses, revenue shortfalls, and non-catastrophic emergency capital repairs. BWA developed a financial plan designed to maintain prudent reserve levels that are in-line with industry standards.

Debt Service Coverage
The outstanding wastewater debt requires that the City generate net operating revenues of 1.2 times the total annual debt service payment or greater. This is referred to as “debt service coverage”. The wastewater enterprise appears to currently have a debt service ratio below 1.20x. The recommended rate increases are designed to bring the ratio above 1.30x.

7.3 Financial Plan Assumptions
The financial projections incorporate the latest information available and a number of reasonable and slightly conservative assumptions for planning purposes. Key assumptions include:

Revenue Assumptions
• Wastewater rate revenues are based on estimated revenues for the current fiscal year. • Rates proposed to be adopted in July 2023 will be effective on August 1, 2023, with rate adjustments planned to become effective on July 1 of each of the subsequent four years. • To be conservative and ensure revenues will be sufficient, BWA assumed no annual growth.

BARTLE WELLS ASSOCIATES 21
City of Willits – Water Rate Study 2023
• Interest earnings are projected based on the annual beginning fund balance multiplied by the projected interest rate. The interest rate projections are based on recent and anticipated interest rates.

7.4 Cash Flow Projections
Long-term cash-flow projections were developed based on assumptions and key drivers of future rate increases described above. The projections were used to determine the wastewater utility’s annual revenue requirements and project required wastewater rate revenue increases. The long-term cash-flow projections incorporate the latest information available from the City’s budget, annual reports, capital spending projections, and metered water demand data, as well as a number of reasonable assumptions developed with input from the City. The overall rate revenue increases shown for each of the following scenarios are designed to fund the City’s cost of providing service, maintain roughly balanced budgets, maintain healthy debt service coverage, and maintain prudent reserves. The projections indicate the need for increases for water rate revenues for each of the next five fiscal years. Actual impacts to customers’ wastewater bills will vary based on meter size and water use, due to the outcome of the updated cost-of-service analysis.

7.5 Cash Flow Projection Scenarios
This report explores the financial plan and rates for two different capital scenarios which are as follows:
• Scenario 1 – Baseline CIP. This scenario reflects the baseline wastewater CIP and does not include a solar project.
• Scenario 2 – Baseline CIP and Solar Project. This scenario projects the baseline wastewater CIP plus an increase in capital spending due to the addition of a solar insolation project. In this scenario, after the solar project is completed, electricity costs are reduced by $260,000.

The City submitted an application to construct a solar project in time to qualify for more favorable pricing; however, the solar project is in the very preliminary stages. BWA ran a scenario to see what rate increases would likely be needed to support the project.

In future years, the City can re-evaluate its finances and revenue requirements and adjust rates as needed based on updated projections. However, while the City always has the flexibility to implement rate adjustments that are lower than adopted pursuant to Proposition 218, future rates cannot exceed adopted increases without going BARTLE WELLS ASSOCIATES 22
City of Willits – Water Rate Study 2023
through the Proposition 218 process again. Rates adopted pursuant to Proposition 218 are essentially future rate caps.

7.6 Cash Flow Projection for Scenario 1 – Baseline CIP
This scenario cash funds the projects in the baseline capital improvement plan and does not include a solar project.

This scenario demonstrates that 6.5% rate revenue increases are sufficient to fund the City’s operating expenses and the baseline CIP. It is important to keep in mind projections more than five years out are conservative and do not include grants and capital construction slowdowns.

The following figure visually depicts the baseline CIP costs per year.

Figure 4 – Scenario 1, Baseline CIP Spending
The following figure visually depicts the cash-flow projections with the proposed rate increases for the next five years. Projected expenses are summarized into key categories. The figure also shows the projected fund reserves at the end of each fiscal year.

BARTLE WELLS ASSOCIATES 23
City of Willits – Water Rate Study 2023
Figure 5 – Scenario 1, Baseline CIP Cashflow
BARTLE WELLS ASSOCIATES 24
City of Willits – Water Rate Study 2023
Detailed, long-term, cash-flow projections for this scenario are shown in the following table.

Table 9 – Scenario 1, Baseline CIP Detailed Cashflow
Wastewater Fund FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Reserves
Beginning Reserve Balance $4,790,941 $4,853,629 $4,642,816 $4,306,817 $3,909,537 $3,557,783 Revenue Escalation
Rate Revenue Increase 6.5% 6.5% 6.5% 6.5% 6.5%
Revenues
Operating Revenue
User Charge Revenue $2,369,583 $2,369,583 $2,523,606 $2,687,641 $2,862,337 $3,048,389 Additional Revenue $154,023 $164,034 $174,697 $186,052 $198,145 Other Revenue ________ ________ ________ ________ ________ ________ 1,003,800 1,017,031 1,013,507 1,012,667 1,011,674 1,010,794 Total Operating Revenue $3,373,383 $3,540,637 $3,701,148 $3,875,004 $4,060,063 $4,257,329 Total Revenue $3,373,383 $3,540,637 $3,701,148 $3,875,004 $4,060,063 $4,257,329 Expenses
Total Operating Expenses $2,409,598 $2,398,685 $2,518,619 $2,644,550 $2,776,778 $2,915,617 Non-Operating Expenses
Capital $0 $450,000 $619,500 $727,650 $729,304 $243,101 Existing Debt Service ________ ________ ________ ________ ________ ________ 901,098 902,765 899,027 900,085 905,736 900,782 Total Non-Operating Expenses $901,098 $1,352,765 $1,518,527 $1,627,735 $1,635,040 $1,143,883 Total Expenses $3,310,696 $3,751,450 $4,037,147 $4,272,285 $4,411,818 $4,059,500 Net Revenues $62,688 -$210,813 -$335,999 -$397,280 -$351,754 $197,829 Ending Reserve Balance $4,853,629 $4,642,816 $4,306,817 $3,909,537 $3,557,783 $3,755,612 Debt Service Coverage (Target 1.3) 1.07 1.26 1.32 1.37 1.42 1.49 BARTLE WELLS ASSOCIATES 25
City of Willits – Water Rate Study 2023

7.7 Cash Flow Projection for Scenario 2 - Full Capital with New Debt This scenario cash funds the projects in the baseline capital improvement plan and does a portion of the solar project. The remaining $2,000,000 of the solar project costs are debt financed. This scenario assumes the solar project causes an annual reduction of $260,000 in electricity expenses after the project is completed in FY 26. This scenario demonstrates that 7.0% rate revenue increases are needed in FY 24, FY 25, and FY 26 with 6% increases the final two years of the study to fund the City’s operating expenses, the baseline CIP, and the solar project. It is important to keep in mind projections more than five years out are conservative and do not include grants and capital construction slowdowns.

The following figure visually depicts the baseline CIP costs per year.

Figure 6 – Scenario 1, Baseline CIP Spending
BARTLE WELLS ASSOCIATES 26
City of Willits – Water Rate Study 2023
The following figure visually depicts the cash-flow projections with the proposed rate increases for the next five years. Projected expenses are summarized into key categories. The figure also shows the projected fund reserves at the end of each fiscal year.

Figure 7 – Scenario 2 Projected Cashflow Graph
BARTLE WELLS ASSOCIATES 27
City of Willits – Water Rate Study 2023
Detailed, long-term, cash-flow projections for this scenario are shown in the following table.

Table 10 – Scenario 2 Detailed Cash Flow Projections
Wastewater Fund FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Reserves
Beginning Reserve Balance $4,790,941 $4,853,629 $4,654,664 $4,343,990 $3,093,407 $2,885,235 Revenue Escalation
Rate Revenue Increase 7.0% 7.0% 7.0% 6.0% 6.0%
Revenues
Operating Revenue
User Charge Revenue $2,369,583 $2,369,583 $2,535,454 $2,712,936 $2,902,842 $3,077,012 Additional Revenue $165,871 $177,482 $189,906 $174,170 $184,621 Other Revenue ________ ________ ________ ________ ________ ________ 1,003,800 1,017,031 1,013,537 1,012,760 1,009,634 1,009,113 Total Operating Revenue $3,373,383 $3,552,485 $3,726,473 $3,915,602 $4,086,646 $4,270,746 Non-Operating Revenue
New Debt ________ ________ ________ ________ ________ ________ $2,000,000 Total Non-Operating Revenue $0 $0 $0 $2,000,000 $0 $0
Total Revenue $3,373,383 $3,552,485 $3,726,473 $5,915,602 $4,086,646 $4,270,746 Expenses
Total Operating Expenses $2,409,598 $2,398,685 $2,518,619 $2,644,550 $2,516,778 $2,642,617 Non-Operating Expenses
Capital $0 $450,000 $619,500 $3,550,050 $729,304 $243,101 Existing Debt Service 901,098 902,765 899,027 900,085 905,736 900,782 New Debt Service ________ ________ ________ ________ ________ ________ $0 $0 $0 $71,500 $143,000 $143,000 Total Non-Operating Expenses $901,098 $1,352,765 $1,518,527 $4,521,635 $1,778,040 $1,286,883 Total Expenses $3,310,696 $3,751,450 $4,037,147 $7,166,185 $4,294,818 $3,929,500 Net Revenues $62,688 -$198,965 -$310,674 -$1,250,583 -$208,172 $341,246 Ending Reserve Balance $4,853,629 $4,654,664 $4,343,990 $3,093,407 $2,885,235 $3,226,481 Debt Service Coverage Ratio 1.07 1.28 1.34 1.31 1.50 1.56 BARTLE WELLS ASSOCIATES 28
City of Willits – Water Rate Study 2023
8 WASTEWATER COST OF SERVICE ANALYSIS AND RATE DERIVATION BWA derived updated wastewater rates that account for both a) the overall rate increases identified in the financial projections, and b) proposed rate structure modifications. The proposed rates are designed to equitably apportion and recover costs from the City’s customer base. The basic methodology used to develop new rates includes the following steps:

Figure 8 – WW Cost of Service Analysis and Rate Derivation Process Derive Unit Rates for Wastewater Capacity, Flow & Strength Divide costs allocated for recovery from fixed capacity, flow and strength by total loadings for each functional component to derive unit rates for wastewater EDU, flow, BOD, and TSS. The unit rate per EDU is paid by all customers as a monthly fixed service charge.

Residential Rate Derivation
Allocate the revenue requirement for cost
recovery based on EDU and average winter
water use adjusted for the residential
return-to-sewer factor. Divide costs
allocated each category by their respective
Non-Residential Rate Derivation
Divide the revenue requirements for each
customer class by the projected water use
adjusted for the non-residential return-tosewer factor to determine a rate per kgal for each class.

Allocate Flow & Strength Costs to Customer Classes
Multiply unit rates by the wastewater flow and loadings of each customer class to determine the revenue
requirement of each class.

Estimate Wastewater Flow & Strength Loadings
The wastewater flow, BOD, and TSS concentrations for each class were multiplied by the billing units and balanced to fall within the range of recent WRF inflows and loadings.

Allocate Cost to Functional Component
Each cost was allocated to function:
fixed capacity (EDU), flow, BOD, and TSS.

BARTLE WELLS ASSOCIATES 29
City of Willits – Water Rate Study 2023

8.1 Flows and Loadings
The following table estimates the flows and loadings of each customer class based on analysis of recent winter and annual water consumption data and wastewater strength assignments for each customer class. • Residential flows per unit are based on analysis of historical winter water use data. Residential wastewater strength concentrations are based on estimates previously published by the State Water Resources Control Board (SWRCB). Residential wastewater strength concentrations have increased over the past decade as the volume of wastewater flow has decreased due to transition to low-flow toilets, waterefficient appliances, and other water conservation and efficiency measures. • Commercial wastewater flows are estimated based on winter metered water use adjusted to account for a 90% RTS factor. Wastewater strength assignments for commercial customer classes are largely based on strength estimates previously published by the SWRCB.

The resulting flow and strength projections for each class are shown on the following table and provide the basis for allocating costs and deriving equitable wastewater rates for each customer class.

Table 11 – Wastewater Flows and Loading

8.2 Functional Allocation
The next step in the cost of service analysis is to assign wastewater system costs in each allocation category for revenue recovery via the functional cost components of flow, BOD (biochemical oxygen demand), and TSS (total suspended solids). While there is no single correct approach for cost allocation, BWA believes that costs should be allocated within a reasonable range that reflects both a) underlying cost causation, to the extent such causation can reasonably be determined or estimated, and b) the policy preferences of the agency in cases where a range of reasonable approaches can be justified. This process is intended to proportionately allocate costs to each functional component to determine the revenue requirement for each component. The allocations to each functional component were based on input from City staff.

Sewer Units Est. CCF Flow Est. CCF Flow
with Growth Per Unit 90% Return hcf mg gpd BOD TSS BOD TSS RESIDENTIAL Dwelling Units
Single Family 2,018 5.8 140,453 105.07 287,852 300 300 263,090 263,090

NON-RESIDENTIAL
Low Strength per CCF 5,696 5,696 4.26 11,674 100 100 3,557 3,557 Medium Strength per CCF 28,083 28,083 21.01 57,555 230 230 40,330 40,330 High Strength per CCF 10,692 10,692 8.00 21,913 650 650 43,394 43,394 Total Commercial 44,471 33.27 91,142 315 315 87,280 87,280 TOTAL 2,018 184,924 138.33 378,994 304 304 350,371 350,371 Projected Wastewater Flow Strength (mg/l) Loadings (lbs) BARTLE WELLS ASSOCIATES 30
City of Willits – Water Rate Study 2023
The functional cost components are described as follows:
• Flow reflects costs associated with the volume of wastewater collected and treated. • BOD reflects costs associated with treating BOD.
• TSS reflects costs associated with treating TSS.

The following table shows a breakdown of the sewer utility’s expenses, how they are allocated and calculates the unit rates per unit of flow, BOD and TSS. The wastewater rate revenue requirements from the prior table for each functional component are divided by the units related to each function.

Table 12 – Scenario 1, Functional Cost Allocation
Functional Allocation
Categories Expenses
Offsetting
Revenues
Allocation
Amount Flow BOD TSS
Treatment $1,377,584 $988,959 $388,625 33.3% 33.3% 33.3% Collection $678,145 $0 $678,145 100.0%
Capital $846,606 $2,200 $844,406 76.0% 12.0% 12.0%
Existing Debt $901,679 $901,679 33.3% 33.3% 33.3%
New Debt $0 $0 $0 33.3% 33.3% 33.3%
Total $3,804,014 $991,159 $2,812,855 $1,749,995 $531,430 $531,430 Allocation % 62.21% 18.89% 18.89%
As All Other $302,426 $23,735 $326,161 62.21% 18.89% 18.89% Total $4,106,440 $1,014,895 $3,139,016 $1,952,913 $593,051 $593,051 Final Allocation 100.00% 62.21% 18.89% 18.89%
Rate Revenue Requirement $2,523,606 $1,570,041 $476,783 $476,783 Functional Allocation
Units Flow BOD TSS
(KGAL) (LBS) (LBS)
Demand Units 184,924 350,371 350,371
Revenue Requirement $1,570,041 $476,783 $476,783
Unit Cost ($/Unit) $8.49 $1.36 $1.36
Projected 5-Year
Average
BARTLE WELLS ASSOCIATES 31
City of Willits – Water Rate Study 2023
Table 13 – Scenario 2 Functional Cost Allocation

8.3 Flow and Strength Revenue Requirement by Class
Revenue requirements for each customer class are calculated by multiplying the unit rates for flow, BOD and TSS from the volume of wastewater flow and loadings associated with each class.

Functional Allocation
Categories Expenses
Offsetting
Revenues
Allocation
Amount Flow BOD TSS
Treatment $1,270,984 $988,959 $282,025 33.3% 33.3% 33.3% Collection $678,145 $0 $678,145 100.0%
Capital $1,411,086 $2,200 $1,408,886 52.0% 24.0% 24.0%
Existing Debt $901,679 $901,679 33.3% 33.3% 33.3%
New Debt $71,500 $0 $71,500 33.3% 33.3% 33.3%
Total $4,333,394 $991,159 $3,342,235 $1,829,167 $756,534 $756,534 Allocation % 54.73% 22.64% 22.64%
As All Other $302,426 $23,015 $325,441 54.73% 22.64% 22.64% Total $4,635,820 $1,014,175 $3,667,676 $2,007,277 $830,199 $830,199 Final Allocation 100.00% 54.73% 22.64% 22.64%
Rate Revenue Requirement $2,535,454 $1,387,625 $573,914 $573,914 Functional Allocation
Units Flow BOD TSS
(KGAL) (LBS) (LBS)
Demand Units 184,924 350,371 350,371
Revenue Requirement $1,387,625 $573,914 $573,914
Unit Cost ($/Unit) $7.50 $1.64 $1.64
Projected 5-Year
Average
BARTLE WELLS ASSOCIATES 32
City of Willits – Water Rate Study 2023
Table 14 – Scenario 1, Flow and Strength Revenue Requirement by Class Table 15 – Scenario 2, Flow and Strength Revenue Requirement by Class Wastewater Annual
Flow Flow BOD TSS Sewer
hcf BOD TSS $8.49 $1.36 $1.36 Charges
RESIDENTIAL 140,453 263,090 263,090 $1,192,472 $358,012 $358,012 $1,908,496 NON-RESIDENTIAL 44,471 87,280 87,280 $377,569 $118,771 $118,771 $615,111 TOTAL 184,924 $1,570,041 $476,783 $476,783 $2,523,606
Wastewater Unit Costs
Strength (lbs)
Wastewater Annual
Flow Flow BOD TSS Sewer
hcf BOD TSS $7.50 $1.64 $1.64 Charges
RESIDENTIAL 140,453 263,090 263,090 $1,053,924 $430,947 $430,947 $1,915,819 NON-RESIDENTIAL 44,471 87,280 87,280 $333,701 $142,967 $142,967 $619,635 TOTAL 184,924 $1,387,625 $573,914 $573,914 $2,535,454
Wastewater Unit Costs
Strength (lbs)
BARTLE WELLS ASSOCIATES 33
City of Willits – Water Rate Study 2023

8.4 Domestic Rate Derivation
Residential rates are derived by dividing the total amount of costs designated residential rate recovery by the total number of residential fixed billing units.

Table 16 – Scenario 1, Domestic Rate Derivation
Table 17 – Scenario 2, Domestic Rate Derivation

8.5 Non-Residential Volumetric Rate Derivation
The following table calculates volumetric rates for each commercial customer class by dividing the revenue requirements for each class by the volume of billable usage applicable to each class. The volume of billable use for each class reflects a 90% of winter flow. Some customers receive the minimum charge so the rate derivation must adjust for billable flows.

Table 18 – Scenario 1, Non-Residential Billable Flows and Loading Residential Revenue Requirement 2023/24 $1,908,496
Adjusted Residential Dwelling Units 2,018
Rate per Dwelling Unit
Annual $945.74
Monthly $78.82
Residential Revenue Requirement 2023/24 $1,915,819
Adjusted Residential Dwelling Units 2,018
Rate per Dwelling Unit
Annual $949.37
Monthly $79.12
Sewer Units Est. CCF Flow Est. CCF Flow
with Growth Per Unit 90% Return BOD TSS
NON-RESIDENTIAL Accounts
Low Strength per CCF 5 varies 5,696 3,557 3,557
Medium Strength per CCF 250 varies 23,555 33,827 33,827 High Strength per CCF 44 varies 10,652 43,230 43,230
Total Commercial 299 80,614 80,614
Loadings (lbs)
BARTLE WELLS ASSOCIATES 34
City of Willits – Water Rate Study 2023
Table 19 – Scenario 1, Revenue Requirements
Table 20 – Scenario 2, Revenue Requirements
Table 21 – Scenario 1, Non-Residential Rate Derivation
Wastewater Annual Annual
Flow Flow BOD SS Sewer Sewer
hcf BOD SS $8.49 $1.36 $1.36 Charges Charges

NON-RESIDENTIAL
Low Strength per CCF 5,696 3,557 3,557 $48,361 $4,840 $4,840 $58,041 10.4% Medium Strength per CCF 23,555 33,827 33,827 $199,987 $46,032 $46,032 $292,050 52.3% High Strength per CCF 10,652 43,230 43,230 $90,435 $58,827 $58,827 $208,089 37.3% Total 39,903 80,614 80,614 $338,783 $109,699 $109,699 $558,180 100% Wastewater Unit Costs
Strength (lbs)
Wastewater Annual Annual
Flow Flow BOD TSS Sewer Sewer
hcf BOD SS $7.50 $1.64 $1.64 Charges Charges

NON-RESIDENTIAL
Low Strength per CCF 5,696 3,557 3,557 $42,742 $5,826 $5,826 $54,394 9.7% Medium Strength per CCF 23,555 33,827 33,827 $176,751 $55,409 $55,409 $287,570 51.0% High Strength per CCF 10,652 43,230 43,230 $79,928 $70,812 $70,812 $221,551 39.3% Total 39,903 80,614 80,614 $299,421 $132,047 $132,047 $563,515 100% Wastewater Unit Costs
Strength (lbs)
Total Non-Residential Revenue Requirement 2023/24 $615,111 Minimum Charge Customers 160
Minimum Charge $945.74
Minimum Charge Revenue $151,317.80
Volumetric Non-Residential Revenue Requirement $463,792.83 Non-Residential Class
Volumetric
Revenue
Requirement
Volumetric
Revenue
Requirement Billing Units Rate $/ CCF*
Low Strength per CCF 10% $48,226.26 5,696 $8.47
Medium Strength per CCF 52% $242,665.09 23,555 $10.30
High Strength per CCF 37% $172,901.47 10,652 $16.23
*Non-Residential rate applied to annualized winter (Dec-Mar) usage BARTLE WELLS ASSOCIATES 35
City of Willits – Water Rate Study 2023
Table 22 – Scenario 2, Non-Residential Rate Derivation

8.6 Proposed Wastewater Rates
The following table shows a 5-year schedule of proposed wastewater rates. Proposed domestic rates are based on the wastewater rates derived for 2026/27 with rates in the intervening years phased in even increments. The rates are designed to recover the City’s costs of providing wastewater service while achieving roughly balanced budgets in upcoming years.

Table 23 – Scenario 1, Proposed Wastewater Rates
Total Non-Residential Revenue Requirement 2023/24 $619,635 Minimum Charge Customers 160
Minimum Charge $949.37
Minimum Charge Revenue $151,898.42
Volumetric Non-Residential Revenue Requirement $467,736.97 Non-Residential Class
Volumetric
Revenue
Requirement
Volumetric
Revenue
Requirement Billing Units Rate $/ CCF*
Low Strength per CCF 10% $45,148.87 5,696 $7.93
Medium Strength per CCF 51% $238,693.31 23,555 $10.13
High Strength per CCF 39% $183,894.78 10,652 $17.26
*Non-Residential rate applied to annualized winter (Dec-Mar) usage Wastewater Charges FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Current Projected Projected Projected Projected Projected Residential / Minimum
Charge Per EDU $888.40 $945.74 $1,007.21 $1,072.68 $1,142.41 $1,216.67 Nonresidential Volumetric Charges
Low Strength per CCF $7.94 $8.47 $9.03 $9.62 $10.25 $10.92 Domestic Strength per CCF $9.69 $10.30 $10.97 $11.69 $12.45 $13.26 High Strength per CCF $15.18 $16.23 $17.29 $18.42 $19.62 $20.90 BARTLE WELLS ASSOCIATES 36
City of Willits – Water Rate Study 2023
Table 24 – Scenario 2, Proposed Wastewater Rates

8.7 Regional Wastewater Rate Survey
The following charts compare the wastewater and sewer bills for a typical single-family home to those of other regional agencies.

Table 25 – Sewer Rate Survey
Wastewater Charges FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Current Projected Projected Projected Projected Projected Residential / Minimum
Charge Per EDU $888.40 $949.37 $1,015.83 $1,086.94 $1,152.16 $1,221.29 Nonresidential Volumetric Charges
Low Strength per CCF $7.94 $7.93 $8.49 $9.09 $9.64 $10.22 Domestic Strength per CCF $9.69 $10.13 $10.84 $11.60 $12.30 $13.04 High Strength per CCF $15.18 $17.26 $18.47 $19.77 $20.96 $22.22 BARTLE WELLS ASSOCIATES 37
City of Willits – Water Rate Study 2023

APPENDIX A
Water Rate Study Tables
BARTLE WELLS ASSOCIATES 38
City of Willits – Water Rate Study 2023

APPENDIX B
Wastewater Rate Study Tables
City of Willits
2023 Water and Wastewater
Rate Study
City Council Meeting
May 24, 2023
Presentation
Overview
Rate Study Process
Background and Objectives
Water Financial Plan & Rates
Wastewater Financial Plan & Rates
Next Steps
Questions and Discussion
2 Rate Study
Overview
• 10-Year Financial Plans
• Fund long-term operating, debt service and capital
needs
•Cost of Service Rate Analysis
• Evaluate rate alternatives
• Develop updated rates that reflect the cost of service and meet annual revenue requirements
•Worked closely with City throughout project
• Goal: Build consensus for final recommendations
3 Rate Study Process
Kick-Off Demand
Analysis
Ten-Year
Financial
Plan
Cost
Allocation
Rate
Design
Prop. 218
Process
4 Rate Study
Objectives
Financial Sufficiency
Legal Compliance (Prop. 218)
Rates Aligned with City Objectives
Customer Focus
5 Gradual
Rate
Increases
Gradual annual rate increases are customer
focused because they:
• Keep revenues aligned with costs of service
• Minimize annual impact on ratepayers
• Bills are predictable, no rate “shock”
6 0%
10%
20%
30%
40%
1 2 3 4 5 Year:

Deferred Rate Increase Example

6.5%

6.5%
Reduced Revenues
Example applied to Water Fund =
$2 million in reduced revenue
Cumulative
Increase
37%
Proposition
218
Voter-approved constitutional amendment 1996
◦ Added Articles 13C & 13D to the California
Constitution
Substantive requirements for property-related charges
◦ Rates cannot exceed cost of providing service
◦ Proportionate cost recovery (fair and equitable)
Procedural requirements for rate increases
◦ Mail notice of rate increases to all property
owners/customers
◦ Hold public hearing at least 45 days after the mailing ◦ Rates are subject to “majority protest”
7 8
Water
Enterprise
8 Water
Financial
Challenges
• BWA developed updated financial projections to
identify funding needs & evaluate rate increases
• Aging infrastructure & capital improvement needs
• Water system upgrades, repairs & replacements needed
maintain safe & reliable operations
• $6.7 million over the next 5 years
• Operating cost inflation
• 18% inflation since 2019
• 5.0% per year over next 5 years
• Annual rate adjustments needed to keep rates in line with escalating costs (electricity, staffing, materials, insurance, etc.) • Maintain Prudent Reserves
• Emergencies, demand fluctuation, cash funding capital, etc. 9 Water
Capital Plan
•Ten-year capital spending $10.6 million
•Target cash funding $500,000 per year
10 Key Projects Project Cost
Backwash Ponds Press $315,000
Berry Hill Tank 551,250
Bittenbender Tank 1,021,025
Centennial Inflatable Spillway Gates 500,000
Groundwater Resiliency Improvement Project 720,000
Laurel Tank 868,219
Locust Tank 911,630
Water Main Replacement Project 902,000
10-Year Water Capital Improvement Plan
11 $2.0
$1.2
$0.7
$1.5
$1.3
$1.1
$0.7 $0.7 $0.7 $0.8
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 Millions
General Capital
Ground Water
Distribution
Surface Water
Storage
Future costs include annual construction cost inflation 5-Year Water
Financial Plan
12 *Due to rate structure adjustments, actual bill impacts will vary the first year $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Funded Capital
Debt Service
O&M
Revenue
Reserves
Projected Water Revenues & Expenses ($ Millions)
Projected Maximum Rate Revenue Increases
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28

6.5%* 6.5% 6.5% 6.5% 6.5%
10-Year Water Financial Plan ($ Millions)
13 $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 Rate Funded Capital
Debt Service
O&M
Revenue
Reserves
Recommended
Water Rates
14 Volumetric Rates FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Current Proposed Proposed Proposed Proposed Proposed
Residential
Tier 1 (0-6 CCF) $6.28 $6.63 $7.06 $7.52 $8.01 $8.53
Tier 2 (>6 CCF) $8.69 $9.96 $10.61 $11.30 $12.03 $12.81 Non-Residential
Tier 1 (All CCF) $7.84 $8.02 $8.54 $9.10 $9.69 $10.32
Fixed Rates FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Meter Size Existing Proposed Proposed Proposed Proposed Proposed 5/8" $25.42 $27.08 $28.84 $30.71 $32.71 $34.84
3/4" $38.13 40.63 43.27 46.08 49.08 52.27
1" $63.55 67.71 72.11 76.80 81.79 87.11
1 1/2" $127.09 135.42 144.22 153.59 163.57 174.20
2" $203.34 216.67 230.75 245.75 261.72 278.73
3" $406.68 433.33 461.50 491.50 523.45 557.47
4" $635.42 677.08 721.09 767.96 817.88 871.04
6" $1,270.84 $1,354.17 $1,442.19 $1,535.93 $1,635.77 $1,742.10 Residential
Water Bill
Impacts
15 16
Monthly Residential Water Rate Survey
Average Use: 6 CCF, 5/8” Meter
$0
$20
$40
$60
$80
$100
$120
City of
Santa Rosa
City of
Rohnert
Park
Redwood
Valley CWD
Fort Bragg City of
Healdsburg
City of
Cloverdale
City of
Willits
City of
Willits
(Proposed)
City of
Ukiah
Highlands
Water Co
(Clearlake)
River
Estates
Mutual WC
Brooktrails
CSD
Golden
State Water
Co
(Clearlake)
Fixed Charge Variable Charge
17 Wastewater
Enterprise
17 Financial
Challenges
• BWA developed updated financial projections to
identify funding needs & evaluate rate increases
• Aging infrastructure & capital improvement needs
• Water system upgrades, repairs & replacements needed
maintain safe & reliable operations
• $2.9 million over the next 5 years
• Operating cost inflation
• 5.0% per year over next 5 years
• Annual rate adjustments needed to keep rates in line with escalating costs (electricity, staffing, materials, insurance, etc.) • Maintain Prudent Reserves
• Emergencies, demand fluctuation, cash funding capital, etc. 18 Sewer
Capital Plan
•Ten-year capital spending $5.7 million
•Target cash funding $400,000 per year
•Scenario 2: Add solar project $2.8 million
•Inflation Reduction Act Discount of 25.6%
• $260,000 electricity cost reduction
19 Key Projects Project Cost
Water & Sewer Main Replacement Project $420,000
Loader $347,288
TV Truck Upgrade (software/camera) $110,250
East Oak Street Main Replacement $198,450
Maintenance building $400,000
Replace Fan Press $678,038
10-Year Sewer Capital Improvement Plan
Scenario 1 (no solar project)
20 $0.45
$0.75 $0.73 $0.73
$0.24
$0.51 $0.54 $0.56 $0.59 $0.62
$0.0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
$0.8
$0.9
$1.0
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 Millions
Other
Collection
Treatment
Total
Future costs include annual construction cost inflation 5-Year
Wastewater
Financial Plan
Scenario 1 (no
solar project)
21 *Due to rate structure adjustments, actual bill impacts will vary the first year Projected Maximum Rate Revenue Increases
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28

6.5%* 6.5% 6.5% 6.5% 6.5%
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Funded Capital
Debt Service
O&M
Revenue
Reserves
Projected Sewer Revenues & Expenses ($ Millions)
10-Year Water Financial Plan
Scenario 1 (no solar project)
22 $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 Rate Funded Capital
Debt Service
O&M
Revenue
Reserves
Recommended Wastewater Rates
Scenario 1 (no solar project)
23 Wastewater Charges FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Current Projected Projected Projected Projected Projected Residential / Minimum
Charge Per EDU $888.40 $945.82 $1,007.30 $1,072.78 $1,142.52 $1,216.79 Nonresidential Volumetric Charges
Low Strength per CCF $7.94 $8.52 $9.08 $9.68 $10.31 $10.99 Domestic Strength per CCF $9.69 $10.32 $11.00 $11.72 $12.49 $13.31 High Strength per CCF $15.18 $16.14 $17.19 $18.31 $19.51 $20.78 10-Year Sewer Capital Improvement Plan
Scenario 2 (solar project)
24 $0.45
$0.75
$3.55
$0.73
$0.24
$0.51 $0.54 $0.56 $0.59 $0.62
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 Millions
Other
Collection
Treatment
Future costs include annual construction cost inflation 5-Year
Wastewater
Financial Plan
Scenario 2
(solar project)
25 *Due to rate structure adjustments, actual bill impacts will vary the first year $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Funded Capital
Debt Service
O&M
Revenue
Reserves
Projected Sewer Revenues & Expenses ($ Millions)
10-Year Water Financial Plan
Scenario 2 (solar project)
26 $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 Rate Funded Capital
Debt Service
O&M
Revenue
Reserves
Recommended Wastewater Rates
Scenario 2 (solar project)
27 28
Monthly Residential Sewer Rate Survey
Average Winter Use: 6 CCF
$47.15
$67.30 $69.12 $69.13 $70.63 $73.61 $74.03 $76.67 $78.82 $79.12 $88.58 $91.76 $95.78
$0
$20
$40
$60
$80
$100
$120
City of
Cloverdale
Mendocino
City CSD
City of
Point Arena
City of
Rohnert
Park
Ukiah
Valley SD
City of
Ukiah
City of
Willits
Brooktrails
CSD
City of
Willits
(Scenario 1)
City of
Willits
(Scenario 2)
Fort Bragg City of
Cotati
City of
Santa Rosa
29 Monthly Residential Combined Rate Survey
Water Use: 6 CCF
$110.20 $119.21
$137.13 $137.99 $141.59 $145.68 $145.98 $148.12 $160.48 $0
$20
$40
$60
$80
$100
$120
$140
$160
$180
City of
Cloverdale
City of
Rohnert
Park
City of
Willits
City of
Santa Rosa
City of
Ukiah
City of
Willits
(Scenario 1)
City of
Willits
(Scenario 2)
Fort Bragg Brooktrails
CSD
Fixed Charge Variable Charge
Summary
• The City has historically provided good financial
stewardship
• Rate increases needed support each utility’s
operating, debt service and capital needs
• Proposed rate increases are phased in over next
5 years
• Rates updated to reflect the cost of service to
each customer class and tier
30 Next Steps
31 BARTLE WELLS

ASSOCIATES
Resolution No. 2023-__ Page 1 of 1 May 24, 2023
RESOLUTION NO. 2023-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS AUTHORIZING THE MAILING OF CALIFORNIA PROPOSITION 218 NOTICES TO PROPERTY OWNERS OF PROPOSED RATE ADJUSTMENTS AND THE DATE AND TIME OF THE PUBLIC HEARING.

WHEREAS, Article XIII D of the California Constitution requires that cities meet certain procedural and substantive requirements when adopting a new or increased Property-related fees or charges, and the Proposition 218 Omnibus Implementation Act (Government Code §53750 and following), as amended, provides additional guidance as to the procedures to be followed; and
WHEREAS, in order to comply with those procedures and conduct fair and accurate protest hearings, the City Council wishes to adopt these local procedures; and NOW, THEREFORE, BE IT RESOLVED that the Willits City Council Does hereby authorize and approve the direction of staff to prepare and mail to all account holders, who would be subject to the proposed new or increased fees, using the customary billing address for each account as authorized by Government Code §53755, containing the information required by Article XIII D of the California Constitution and the Proposition 218 Omnibus Implementation Act that is:

1. The amount of the new or increased fee proposed to be imposed;

2. The basis upon which the fee is calculated;

3. The Reason for the fee;

4. The date, time, and place of the public hearing on the proposed fee and such other information as the City shall determine is useful to those receiving it.

Notice shall be sent via United States Postal Service, Postage prepaid, at least forty-five (45) days before the date set for the public hearing on the new or increased fee. The City Clerk will certify the mailing by an affidavit, which shall constitute conclusive proof of mailing in the absence of fraud. Failure of any person to receive notice shall not invalidate the proceedings.

The above and foregoing Resolution was introduced by Councilmember seconded by Councilmember , and passed and adopted at a regular meeting of the City Council of the City of Willits, held on the 24th day of May 2023, by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:
__________________________
_________________________________
GRETA KANNE, Mayor
City Council of the City of Willits
DELORES PEDERSEN, City Clerk
1 Monthly Achievements & Activities
• Finalized the agreement with Armstrong Consultants and have already engaged their services on several items and will be working with them to put together an Operations Plan and assisting us with the new REACH hangar.
• In April, the City received a Part 16 Official Complaint filed with the FAA in Washington DC from one of our airport tenants regarding four sperate items: 1) Trees Negatively Impact Airspace, in Violation of the Grant Assurance; 2) Pedestrian Pose a Safety/Security Hazard, in Violation of the Grant Assurances; 3) There are Non-Compliant Use of Hangars, in Violation of the Grant Assurances; and 4) The Residential Use of RV’s at the Airport, in Violation of Grant Assurances. • After receiving the document, staff contacted Armstrong Consultants asking for referrals for Airport Compliance Attorneys. We contacted Kaplan Kirsch Rockwell and retained the services of Eric Pilsk. The City had 20-days to compile the information and report back to the FAA. As we felt this was not enough time, Mr. Pilsk obtained an extension from the FAA, and in agreement with the complainant’s attorney. The submission date is now June 16th. We will be collecting the necessary information and forwarding it to the firm next week. • Due to the complaint with the FAA, staff decided to hold off on retaining a third-party assessment of the facility to see what the final decision will be from the FAA. At that point we will determine whether to move forward or not.

Project Updates
• Completed the small office containing the security camera equipment in the Pilots Shack. As part of the renovation, an extensive clean up occurred including new paint. After 20 years it was time to spruce the place up. Thank you, Thomas Gallups, for completing yet another project at the airport.
• The last and final part for the Fuel Island has arrived. We have Beacom Construction scheduled to begin the work of replacing the Island on June 5th. Unfortunately, we have not been able to sell fuel since December due to not receiving the new Fuel Island parts until now. We are looking forward to providing all pilots with fuel again.
• Completed the installation of the 650 linear feet of security fencing along the western lot line.

Therefore, we have fulfilled our obligation to the FAA to reduce easy access and assure compliance with our grant obligations.
• Currently there are two spoil piles adjacent to the REACH complex that need to be removed, as one of them is where REACH plans to construct a hangar and the other will be on the far side of the new hangar, which will be an eyesore. The City obtained a quote from Bud Garman & Sons to move the material to a separate access road to allow emergency vehicles safer access to the end of Runway 34. Finalizing the contract now.

Airport April 2023 | Report
2 Staffing Items
• No items to report.

Budget Status
• No items to report.

Focus for Next Month
• Removal of the spoil piles.
1 Monthly Achievements & Activities
March:
• Issued eleven Building Permits.
• Opened one new Code Enforcement Case.
• Closed zero Code Enforcement Cases.
• Total of twenty active Code Enforcement Cases.

April:
• Issued twelve Building Permits.
• Opened two new Code Enforcement Cases.
• Closed four Code Enforcement Cases.
• Total of eighteen active Code Enforcement Cases.

Project Updates
• City Rail with Trail project update:
o Working with Great Redwood Trail Agency (GRTA) to secure an Encroachment Permit in anticipation of beginning project construction in spring 2024. o Developing full grant application to submit to the State Coastal Conservancy to request an additional $500K to augment the construction budget.
o Reviewing draft Habitat Mitigation and Monitoring Plan that is being prepared to mitigate impacts to environmentally sensitive communities that will result from construction. o Sixty-percent design complete.
• General Plan Land Use Element update:
o Project update presentation for May 10th Council Meeting. o Completed community survey to solicit input on the Land Use Element update. o Developed poster boards to display at City Hall and promote public input. • Caltrans Clean California Local Grant Update.
o Grant deadline extended to May 31st.
o Received Council approval, at the April 12th meeting, to submit grant application to support a variety of improvements in our parks as well as implement improvements identified in the adopted Main Street Corridor Enhancement Plan.
o Working with SHN engineer and staff to develop project cost estimates. o Developed survey and had workstation at LUE public meeting to solicit public feedback. • Caltrans Downtown Willits Signage Update.
o Working with Caltrans to finalize Stand Agreement to purchase and install Downtown Willits signage at the northern Highway 101 interchange.
o Caltrans has not identified a timeline to complete work. Update forthcoming.

Community Development April 2023 | Report
2 o Current work estimate is $6,120.

Staffing Items
• Completed interviews for Code Compliance Officer position. • Seeking candidates for the Senior City Planner position.

Budget Status
• No items to report.

Focus for Next Month
• Flood Emergency Response Plan.
o Finalize Plan and schedule for upcoming Council Meeting – June 14th. • General Plan LUE Update and SOI Amendment.
o Infrastructure and service needs report.
o Develop LUE administrative draft.
o Schedule 4th project Advisory Committee Meeting.
o Summarize public survey results.
o Schedule special council meeting to hold project workshop. • Willits Rail with Trail Project.
o Submit grant application to State Coastal Conservancy. o Habitat Mitigation and Monitoring Plan.
o GRTA Encroachment Permit.
• Caltrans Downtown Willits Signage.
o Work with Finance Department to identify funding.
o Obtain project timeline.
• Sidewalk Ordinance.
• Caltrans Clean California Local Grant Program Application. o Develop project cost estimates.
o Finalize application materials for submission by May 31st . 1 Monthly Achievements & Activities
• Received the draft Traffic Study and will have the Traffic Safety Committee will review the document.
• Issued an RFP for the City Hall Power Resiliency Project. Proposals are due on May 30th. • Received no bids for the City Hall/Art Center Roofs. Next option is to negotiate directly with contractors.
• Submitted to CTC as part of the Local Partnership Program (SB1) Cycle 2 funding, a request of $200K. The funding request will go to the CTC meeting at the end of June. • Utilizing the engineering on-call contracts for:
o Wastewater Discharge Permit preparation (EBA).
o Groundwater monitoring data management, analysis, and reporting (EBA). o Construction management services for the Groundwater Resiliency Improvement Project, including inspection and construction staking (LACO).
o Assistance with grant reporting and administration for the Local Partnership Program (LACO). o Preparation of easements for Railroad Ave. Water Main Relocation (SHN).

Project Updates
• Railroad Trestle Water Line Relocation Project.
o Received and responded to comments from the Mendocino Railway on the MOU. With tourist season underway, the City is coordinating the construction schedule with the Railway. • Groundwater Resiliency Improvement Project, Phase II:
o Pump Upgrades are on hold until July (to allow the area time to dry out). o Anticipate installation of the clear well tank and site improvements in late fall. o The manufacturer received the Award Packet. The City will issue the first payment installment after receipt of the contract documents. Received the foundation design to aid the creation of the final site improvement plan.
o IRWM/Proposition 1 Grant Funding. LACO is preparing the final report for reimbursement for Phase I of the Groundwater Resiliency Improvement Project. • West Mendocino Drainage Project Construction – Phase One. o The project is currently out to bid and bids are due on June 1st. Contract award goes before the Council on June 14th Council meeting, with construction to begin on July 5th. The project is anticipated to be complete one week prior to the first day of school. • Annual Pavement Preservation Project (2023).
o Preparing plans and specs with construction expected in the fall. The project includes digouts on Baechtel Road, a three-inch grind and pave on Boscabelle & South Lenore between Engineering April 2023 | Report
2 East San Francisco and East Valley Streets, with bulb-outs and a new pedestrian crossing at South Lenore and Boscabelle.
• Annual Pavement Preservation Project (2024).
o Submitted a Local Partnership Project funding nomination and accompanying time extension request to the CTC and Local Assistance at the end of April. The City will receive $400K from the Local Partnership Program and match with budgeted funds from $440K from the half cent sales tax allocation. The project consists of paving on Blosser Lane north of the railroad tracks (full depth reclamation & three-inch grind and pave on various portions), two-inch grind & pave on Locust & Walnut, crack and slurry sealing on: Central Avenue; South Street; West Commercial Avenue; East Commercial Avenue (east of the railroad tracks). o Started project plans, with plans and specs expected at the end of May. Construction is expected in the fall. The project consists of paving on Blosser Lane north of the railroad tracks (full depth reclamation & three-inch grind and pave on various portions), two-inch grind & pave on Locust & Walnut, crack and slurry sealing on: Central Avenue; South Street; West Commercial Avenue; East Commercial Avenue (east of the railroad tracks). • Priority given to finalizing the Annual Striping Project.

Staffing Items
• No items to report.

Budget Status
• No items to report.

Focus for Next Month
• Advertise Railroad Trestle Water Main Relocation Project. • Contract award for the Contact Tank for the Groundwater Resiliency Improvement Project. • Award and contract administration for the West Mendocino Drainage Project (Phase One). • Introduce the 2023 Pavement Preservation Project to the Council for permission to advertise. • Finalize environmental permits for the Rail Trail Project (GHD). • Finalize and prepare Council material for the Groundwater Annual Report. • Provide Bartle Wells with updated CIP information for the Water & Wastewater Rate Study. 1 Monthly Achievements & Activities
• Finalizing Cash Reconciliation for Fiscal Years 2020-21 & 2021-22. • Continuing to reconcile accounts in anticipation of the Single Audit, as we meet the threshold for FY 2020-21 due to the Airport Runway Project.
• Fund 690 Liability Reconciliation will conclude with major adjustments to the payroll liability fund.
• Started the initial steps in the development of the Water and Sewer Rate Study after over threeyears of differed rate increases. • Re-engagement of the Landfill Project reconciliation determining the level of default from the County of Mendocino which has neglected to compensate the City for post closure activities for the past twenty-years.
• Preparation of the Brooktrails sewer service billing. • Starting “End of Year Revise” to reflect the reduction of sales tax revenues. • Convened the first Measure K Committee to review the City’s financial status. • Preparing for the Springbrook implementation with the following:
o Filled out questionnaires regarding the modules and current practices. o Development of the Chart of Accounts and accounting methodology. o Re-design of the Purchasing Policy including Accounts Payable & Purchasing Orders. o Additional development of an Escheat Policy to clean and update ledgers. o Development of the Cash Handling Policy & Accounts Receivable Policy to create more robust procedures that will assist in the Bank Reconciliation of the ledgers. o Development of the Reserve Policy that will create financial mechanisms to assign fund balances for planned expenditures.
o Development of a Financial Crisis Plan that will take steps to build resiliency in the City finances and ensure stable funding during times of crisis.
o Development of the “Methodology & Accounting Processes” (MAP) Guidelines that will establish the structures regarding:
 Funding methodologies.
 Appropriation methodologies.
 Construction in process methodologies, including the capitalization methodology.  Naming conventions and journal entry references & approval methodologies.  Basis of budgeting methodologies.

Finance April 2023 | Report
2 Project Updates
• Fiscal Year 2020-2021 Audit Continuing (long-term debt, current liabilities, fixed assets, compensated absences, Form 700s, and various other items submitted to auditors for review. o Currently pulling testing data for the audit for Accounts Payable and Accounts Receivable.

Staffing Items
• Completed contracts with outside resources to assist in the Springbrook implementation to prevent pulling staff from the audits.

Budget Status
• Avenu Insights presented staff with our 4th Quarter Sales and Use Tax Reports. As expected and communicated in the Cannabis Economic report back on March 8th, there is a decline in gross receipts from local businesses. Our consultant’s forecast is projecting a 14-percent decrease in revenues from Sales Tax Revenues. This is after following a 9.2-percent decline in the year prior.

The graph below illustrates the current projection with a drop in funding from our highs back in 2021.
3 • Looking at expectations versus actuals our budgeting expectation swings from very conservative to an expectations mirroring actuals prior to the drop, which ended up being a short-term surge in revenue. We will need to pull back our expectations to be consistent with our new reality of around $1.45 million for the next five-years.
• Beginning the “End of Year Revise” to ensure adequate administrative adjustments needed to close the books for year end.

Focus for Next Month
• Continue with the processing of the FYs 2020-21 & 2021-22 Audits. o SEFA Testing for FYs 2020-21 & 2021-22.
 Expecting the need for a single audit for each year.
 GASB 68 Reporting.
 Bank Reconciliation.
• Finance Committee.
o Prepare materials for the next quarterly meeting including a preliminary list of acquisitions. • Quarterly Budget Reports.

Monthly Achievements & Activities
April 2022 April 2023
• Calls for service (CFS) 629 567
• Cases 85 82
• Arrests 42 47
• Citations 36 71
Project Updates
• Officers gave a drug recognition presentation to parents and staff at Nuestra Alianza. • Officers attended the Nuestra Alianza Mother’s Day event at Rec Grove, interacted with kids and parents and answered questions from kids.
• Officers provided presence and interacted with students and staff at the WHS Senior Prom held at the Community Center.
• National Night Out is on August 1st and we have begun preparations for the event to further our community outreach programs.

Staffing Items
• Pending the completion of her background, Jamie Carey, our Delta College Recruit, is working on administrative tasks and orienting herself with the Department and the City. • Our other recruit at the Santa Rosa Junior College Public Safety Academy is still on course to graduate on May 24th. His first day with us in a patrol sense will be on the 29th. • If all goes according to plan, we are planning on swearing in two new Department members as sworn officers on May 30th.
• Compiling applications for the vacant Dispatcher position. We are hopeful to get viable candidates. We are actively recruiting for the vacant Sergeant position and have given interviews for the CSO position. We remain hopeful of finding a suitable SRO candidate. • Ray Brady now is a Reserve Office and has the assignment of strengthening the Department’s Community Outreach Program.

Budget Status
• No items to report.

Focus for Next Month
• Continue to look to expand on our Community Outreach. • Recruitment for Sgt., SRO, and Dispatcher candidates.

Police Department April 2023 | Report
1 Monthly Achievements & Activities
• Mowed roadsides and abated weeds.
• Finalized application elements to upgrade park facilities for the Caltrans Beautification Grant. • Trimmed Main Street trees for pedestrian clearance.
• Continued with the Public Work Yard cleanup with the removal of several tons of scrap metal along with woody debris from down trees accumulated during this year’s storm events. • Received the variable message, sign trailer.
• Replaced 50 linear feet of four-inch, steel waterline on Bittenbender Lane. • Serviced planter strips along E. Commercial Street by removing unhealthy growth and placing wood chips.
• Loaned cleanup supplies and tools to the Elementary Charter School to help facilitate a cleanup adjacent to Lake Ada Rose in Brooktrails. Working with the Environmental Club at Willits High School to assist with planning and support of a cleanup project under the Skunk Train bridge by the Safeway complex.

Project Updates
• Completed repairs to the Willits Arch. Paramount Sign Contractors provided the parts and labor to finish the work on April 8th. Public Works provided the traffic control in coordination with CALTRANS.
• Removed unstable limbs and trees at Recreation Grove that were threatening the Rodeo Grounds. Donated the wood to the WFD to help with fund raising efforts. The stumps will be ground after the 4th of July events.
• Commissioned Precision Concrete to provide a sidewalk assessment of City owned facilities and areas surrounding the school properties.
• Determined a location for the art installation at Highway 20 Park. Engineers need to stamp the footing design before work on the site can start.
• Received the message kiosks (bulletin boards) for the Sports Complex to post field scheduling and reservations. The crew will install the kiosks by month’s end. • Collected quotes for a new sign at the City Hall / Community Center. The sign will include the new logo, and potentially a small variable message component to advise the community of events and important dates.
• Repaired several water leaks at various locations and flushing of the Distribution System is nearly complete.
• Serviced the waste lines and lift stations for the Carnival & Rodeo Grounds, Recreation Grove, and Sports Complex. The Wastewater Department oversaw the work.

Public Works April 2023 | Report
2 • Finalized the contract for the installation of shade canopies at the Skate Park and Soccer Field.

The work is tentatively scheduled to begin in September.

Staffing Items
• No items to report.

Budget Status
• No items to report.

Focus for Next Month
• Roadside mowing and weed abatement along public right-of-ways and facilities. • Assist in facilitating the Memorial Day Car Show.
• Prepare for the upcoming Hometown Celebration, Rodeo, and yearly Frontier Days events. • Hang the annual street decorations for the hometown events. • Assist with traffic control for the graduation procession (if needed). 1 Monthly Achievements & Activities
• Replaced double water service on Pineview Drive.
• Cleaned 3,000-linear feet of sewer mainline.
• Completed five Fat, Oil and Grease (FOG) inspections on grease traps for commercial sites. • Completed four sewer lateral inspections for home sales. • Replaced a six-foot section of a sewer lateral at the Skunk Train Depot/Chamber of Commerce in the City’s right-of-way, removing roots in the pipe joints. • Replaced failed level control transducer in the Clarifier Stilling Well at the Surface Water Treatment Plant (SWTP).
• Repaired internal lights at the Maple Street Pump Station. • Replaced failed breaker at the Pressure Reducing Vault (PRV) that caused communication failures.
• Contractor Cla-Val services the East Hill Road Vault (Water Distribution System) by cleaning and rebuilding a ten-inch pressure reducing valve and replacing various parts with upgraded stainless-steel versions.
• Replaced all soda ash feed lines at the SWTP which helps with corrosion control throughout the Water Distribution System.
• Installed dam boards allowed both reservoirs to fill to 100-percent capacity, with both dams overflowing.
•
Project Updates
• Ongoing: Sewer lateral inspection program.
• Ongoing: Water meter replacement program.
• Ongoing: Grounds maintenance at Water/Wastewater facilities. • Reservoir Capacity: Morris 662-acre feet and Centennial 638-acre feet equates to 100-percent of full capacity (May 15th).
• April 2023 Water Usage: SWTP: 12,448,956 MG. Apr. 2022: 14,378,000 MG.

GWTP: 4,354,000 MG. Apr. 2022: None.

Totals: 16,798,956 MG. Apr. 2022: 14,378,000 MG.
• Non-Potable Water Usage [Truck Fill Station]: 23,886 K/Gals. Apr. 2022: 42,868 K/Gals. • April 2023 Wastewater Treatment Plant Flows: 46,380,915 MG. • Completed flushing up to West Mendocino Ave. on the west side and E. Valley St. on the east side.

Utilities April 2023 | Report
2 • Waiting for LACO to draft the plans and specifications for the 2021 Underground Utilities Project (Brown Water Abatement)
• Replaced fifty linear feet of four-inch, steel water main in the Bittenbender Pressure Zone.

Replaced all steel water mains in this pressure zone.
• Completed installation of new variable frequency drive (VFD) for the raw water pumps at SWTP with Watson Wells. Working with Sky Valley Engineering on connecting the SCADA communications.
• Submitted the 2022 Electronic Annual Report (EAR) for the Water Treatment Plant. • Completed inspection of the Wastewater Treatment Plant (WWTP) ultraviolet disinfection system with contractor Veolia. The contractor stated the crew are maintaining the UV system in great working condition.
• Completed clarifier settling inspection, operators made recommended adjustments from contractor Siemens at the WWTP.

Staffing Items
• No items to report.

Budget Status
• No items to report.

Focus for Next Month
• Railroad Avenue water main replacement is now scheduled for September 2023 due to MOU agreements and the peak of tourist season approaching.
• Replace water mainline valve on S. Main St (Wipf Construction) scheduled for June 4th at night to minimize the impacts to the Safeway Shopping Center. • Coordinate with Garman Construction on removing sediment from the WWTP storm ponds. • Schedule seasonal road maintenance (grading and dust control) at the SWTP • Complete the Annual Flushing and Valve Exercising Program. • Complete the annual Consumer Confidence Report (CCR) for WTP. • Continued progress on the new Centennial inflatable spillway gates project (Obermeyer).

Willits City CouncilMay 24, 2023

Willits City Council
May 24, 2023