Agenda — Willits City Council, August 27, 2025

111 E. Commercial Street
Willits, California 95490
Tel | 707.459.4601
Fax | 707.459.1562
www.cityofwillits.org

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WILLITS CITY COUNCIL
AGENDA
AUGUST 27, 2025 | 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 input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on the agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda.

Members of the public are asked to observe the rules of decorum. While the City Council welcomes public criticism of policies, procedures, programs, or services of the agency; behavior that disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting and that includes, but is not limited to use of profanity, slurs, yelling from the audience, threatening remarks, physically threatening conduct, or physical or verbal displays of disrespect, will not be tolerated and the individual will be removed immediately.

3. PUBLIC MATTERS
a. Third District County Supervisor John Haschak Monthly Update.- Written report provided. b. Little Lake Fire District Monthly Update. – Written report provided.

4. ENACTMENT OF ORDINANCES
a. None.

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:

Willits City Council Agenda – August 27, 2025.

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a. City Council Minutes:
i. August 13, 2025
b. Adopt a Resolution Authorizing Continuation of Municipal Operations of Another Thirty (30) Days Based Upon the Fiscal Year 2024-2025 Budget.
c. Adopt a Resolution of the City Council of the City of Willits Approving the Acceptance of Federal and/or State Funds for Project BRLS-508290680, East Valley Bridge Replacement, Preliminary Design.

6. MONTHLY ACTIVITY REPORTS
Matters that do not require action by the City Council but are of public interest. a. None.

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

8. CITY MANAGER REPORTS AND RECOMMENDATIONS
a. Discussion of a Draft Ordinance Establishing an Entertainment Zone in Downtown Willits.
b. Verbal Reports – No Action.

9. DEPARTMENT RECOMMENDATIONS (ACTION ITEMS)
a. Discussion and Possible Introduction of Proposed Ordinances to Amend Title 17 (Zoning) of the Willits Municipal Code Including the Modification of Chapter 17.06 Entitled Use Group Classifications and the Addition of Chapters 17.23 Entitled Main Street Mixed Use (DU) Zone and 17.25 Entitled General Mixed Use (GU) Zone .

Presenting staff member: Dusty Duley, Community Development Director. b. Approval of the Second Five-Year Extension of the Existing Land Use Agreement between Reach Air Med Services LLC and the City of Willits at the Willits Municipal Airport to Allow for Continued Operations.

Presenting staff member: Kenan O’Shea, Airport Operations. c. Presentation of Working Capital for Fiscal Year 2025/2026 Budget.

Presenting staff member: Manuel Orozco, Finance Director.

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

11. CITY COUNCIL ANNOUNCEMENTS, COMMUNICATIONS AND REPORTS

12. GOOD & WELFARE

13. CLOSED SESSION NOTICE
a. None.

14. ADJOURNMENT
Willits City Council Agenda – August 27, 2025.

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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 23rd day of August, 2025.

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. 3a
John Haschak, District Supervisor
August 2025 Update
• The bid for replacing the library's roof was approved. Work should be done by October 3rd which, most likely, would mean completion before the rains. • With the County's budget based on future cuts to staff and resources ($6 million this year and a projected $16 million next year), the Board directed all departments to cut their budgets by 6%. I proposed that the Board take the lead and make cuts of 6% to its budget, by both cutting expenses and rolling back the raise that took place in July. The Board did not approve the proposed cuts to out-of-country travel, communications, special department expenses and so forth. The Board also voted down my proposal to roll back raises for the Supervisors. Unfortunately, reductions and cuts will become more difficult the longer we wait.
• Kudos to CalFire. They have done prescribed burns along Hwy. 101 from south of Ukiah to the Ridgewood Grade. This reduces the risk from vehicle induced fires. Fire danger is always present as we just saw with the Pond Fire north of Laytonville and the fire just to the north of Covelo. • Since Phase 2 of the federal Building Resilient Infrastructure and Communities Grant (BRIC) for the Brooktrails/Sherwood Road area and included the Ells Field airport and other buildings/facilities owned by the City of Willits was eliminated, the County has been working on a Hazard Mitigation Grant application for these areas. It is a hazardous fuels reduction program aimed at reducing the risk of loss of life and property. I appreciate the effort put in to developing the applications by County staff and other agencies. • The Board of Supervisors will hold a series of workshops on healthcare issues and the impacts of recent legislation and budget cuts on our local providers and services. These workshops are open to the public. The first workshop will be on Sept. 10, focusing on the fiscal impacts to the County, health clinics, hospitals, and public health. The winter and spring workshops will address impacts on people, health-system pressures, and future cuts that are coming to Social Services, In Home Support Services, and Public Health. With 47% of the residents of Mendocino County on MediCal, healthcare is a critical issue. 3b
LittLe Lake
Fire PrOteCtiON DistriCt
74 E. Commercial St. Willits, California 95490
(707)459-6271
City Council Meeting Update August 2025
Fire Department Update
Around the Firehouse
We have completed our annual state mandated inspections of all Schools, Hotels/Motels and Apartments. We have finished up our local frontier events which included providing EMTs for the main rodeos, Jr. Rodeo as well as engine coverage for the truck pulls. We are gearing up for the Harvest Moon, Haunted Fire House and providing EMT’s for the upcoming High school and youth football games. I would like to thank the volunteers for their dedication, time and hard work they provide for their community. Michelle is in the process of looking for a grant to fund Smoke/CO detectors as we are running low. She is also looking for a grant to purchase a $6,000.00 fire educational bounce house that will teach children about fire safety in the home.

Training
For the month of August training consisted of Fire Fighter Safety and Survival and ladder training. EMT refresher training consisted of circulatory emergencies (internal/external bleeding and shock, as well as cardiovascular system review). We also provided fire extinguisher training to North Brook Nursing home staff. If anyone in the community is interested in fire extinguisher training please reach out to us at the fire house. As of the current date we have responded to 421 calls for service.

Informational
Reminder: Extremely important to have a visible addresses posted. Please keep gutters/roofs cleaned and free of debris for further information to protect your home in the event of a wild fire please reference Mendocino fire safe council’s website. Schools is back in session always slow down in school zones and watch for children crossing the street. Expect heavier traffic around town and give yourself extra time to reach your destination. Stay alert avoid distractions. Safe driving keeps both kids and drivers safe. 111 E. COMMERCIAL STREET
WILLITS, CALIFORNIA 95490
(707) 459-4601 TEL
(707) 459-1562 FAX

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WILLITS CITY COUNCIL

MINUTES
WEDNESDAY AUGUST 13, 2025
Mayor Allman 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 Gerardo Gonzalez, Larry Stranske, Bruce Burton, Vice Mayor Matthew Allaniz, and Mayor Tom Allman were present.

Also present were staff members: Rodney Wilburn, Interim City Manager; Jim Lance, City Attorney; Dusty Duley, Community Development Director; Manuel Orozco, Finance Director; Davey Bowles, Building Official; Walter Kolon, Services and Facilities Director; Scott Herman, Utilities Superintendent; Kate Reitzel, Human Resources Analyst; Connor Stack, City Planner; Brian Fay, Police Chief; and Delores Pedersen, City Clerk.

2. Public Communications
 Virgina Stranske expressed concern over the inability to getting ahold of anyone via phone at City Hall.

3. Public Matters
a. None.

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. July 23, 2025 – Special Meeting
ii. July 23, 2025.
 Councilmember Burton suggested to City Clerk Pedersen that she would save time by condensing and summarizing comments in the minutes. Mayor Allman agreed.

Public Comment: None presented.

Moved by Gonzalez/Seconded by Stranske and carried unanimously to approve consent calendar item 5a.
b. Designate Councilmembers as the League of California Cities 2025 Annual Conference Voting Delegate and Alternate(s).

Willits City Council Minutes of August 13, 2025 Page 2 of 5  Councilmember Gonzalez announced that he would not be attending the Conference due to the uncertainty of the City’s financial situation. Mr. Gonzalez will check and see if there is an alternate way to vote.

Public Comment: None presented.

Moved by Gonzalez/Seconded by Stranske and carried unanimously to name Councilmember Gonzalez as the Voting Delegate and Vice Mayor Alaniz as the Alternate Voting Delegate at the League of California Cities 2025 Annual Conference.

6. Monthly Activity Reports
Matters that do not require action by the City Council but are of public interest. a. Accounts Payable Activity Report – July 2025.
 Bruce Burton inquired if the warrants included payroll. Manuel Orozco responded that only payroll liabilities are included in the Accounts Payable Activity Report because they are paid through the AP process.
b. Building Activity Report – July 2025.
 Bruce Burton inquired about the permit for the log yard at the north end of town.

Dusty Duley, Community Development Director, responded that this is the boundary line adjustment for San Hedrin to expand the log yard operation. Comments were received from California Department of Fish and Wildlife (CDFW) this week, the applicant’s consulting group is responding to the comments. Mr. Duley stated that the soonest there could be a hearing date would be the first meeting in October, this is pending satisfying CDFW comments.
c. Business License Activity Report – July 2025.

Public Comment: None presented.

7. Commissions, Agencies and Authorities
None presented.

8. City Manager Reports and Recommendations
a. Rod Wilburn reported that the city is working with PG&E and their contractor on E Hill Road and are making sure that they will be doing the drainage that was a concern of Ms. Cavanaugh at the 7/23 meeting.

Working with John Kavasnicka to create an entertainment zone for special events downtown to allow for events that would allow for the promotion of local businesses.

Mayor Allman would like the Police Chief involved.

There will be a Budget Workshop on Wednesday, August 20th. Agenda will be posted on Friday August 15th; the workshop is open to the public. The focus will be on the General Fund, Measure K and Transportation Tax.

Public Comment:
 Robin Leler inquired about the City Council acting as the Successor Agency to the City. Ms. Leler’s understanding is that the Successor Agency is who the community would appeal to if they do not like decisions of the Council. Councilmember Gonzalez responded that the Successor Agency was formed with the sunsetting of the Redevelopment Agency. There was a requirement to have a Successor Agency to manage the requirements and expenses of the Redevelopment Agency.

9. Department Recommendations (Action Items)
Willits City Council Minutes of August 13, 2025 Page 3 of 5 a. Discussion to Modify Chapter 2.40 – Airport Amending Willits Municipal Code Ordinance

2.40.30 and 2.40.040 Entitled “Regulations for use and Conduct – Generally”.  Kenan O’Shea presented the need for modifying the Airport Municipal Code Ordinance.
 Mr. O’Shea reported that the newest FAA Grant Assurance #40 is that if an airport has AV fuel for sale it cannot limit its sales. The city will need to have a staff member available to meet potential AV fuel customers at the airport to allow entrance to purchase4 fuel. Mayor Allman inquired if this is for customers only with airplanes? Mr. O’Shea responded that AV Fuel is designed for aviation but what people use it for is not up to the city to determine.
 Mayor Allman asked to have warnings for any violation added to the proposed ordinance amendment before criminal charges are filed.
 Councilmember Gonzalez would like to have verbiage added that the tenants are responsible for the actions of their guests.
 Councilmember Burton inquired if there has ever been an incident of pedestrian vs. airplane at Ells Field Airport. Mr. O’Shea responded that we have never had a report of such an incident.
 Mr. O’Shea wanted to inform the Council and Public that the complaint from the tenant has been going on for several years and has been dismissed without prejudice several times however there are processes within the FAA Complaint processes that extensions can be made.
 Banning Galten, Airport Tenant, states that there have not been any safety violations but that there has been no one to tell the FAA that they are not valid complaints.  Mr. Burton suggested the city use the Aircraft Owner and Pilots Association (AOPA) to solicit input on this.
 Vice Mayor Alaniz feels that changing the ordinance may be the way to let the FAA know that the city is doing what needs to be done to provide a safe airport. Mr. Alaniz feels that the complaints from the tenant are going to continue no matter what the city does.
 Mr. Burton pointed out one concern he has about the proposed ordinance change, under airport rules and staffing it states, “the city will approve and issue an Request for Proposal (RFP) for to update the existing ordinance”. He is hesitant based on the present financial situation; he would like this to be watered down or removed.  Mayor Allman inquired if the FAA is stating that the current ordinance is not strong enough? Mr. O’Shea responded that he believes the FAA wants to see an ordinance that is in line with industry standards.
 Was requested to bring the item back after the updates to the Ordinance have been made to bring back to Council on September 10th for another introduction and more public input.

Public comment:
 Delores Pedersen reports that correspondence was received by Paul Trexel and the letters will be on file for anyone that would like to review them.  Mike Smith, airport tenant, reports that the Ells Field Airport has been in operation and there has been not a single complaint about safety until this one tenant. Mr.

Smith reports that the atmosphere at the airport has changed because of the one tenant and makes it hard for people to be at the airport. b. Approve the Purchase of a Water Treatment Filter Media Replacement Project No.

WTR2588-00, in an Amount Not to Exceed $73,287.93.

Willits City Council Minutes of August 13, 2025 Page 4 of 5 Public Comment:
 Tamara Alaniz expressed her support for the purchase of a water treatment filter media replacement.

Moved by Gonzalez/Seconded by Alaniz and carried unanimously to adopt Resolution No. 2025-37 to approve the purchase of water treatment filter media replacement, Project No. WTR-2588-00 in an amount not to exceed $73,287.93. c. Update on the Rail with Trail Project with Recommendation to Allocate Measure K Funds in the Amount of $417,145.50 to Cover the Construction and Professional Services Cost up to $9,428,235.50.

Public Comment:
 Saprina Rodriguez expressed concern over the borrowing of Measure K. If the Council chooses to take money from Measure K she heard there is hope that the money will go back, she requests that it is made very clear what the plan is and not the hope or intent. She would like the council to make it very clear that the money will go back and the amount does not exceed what the council approved. Ms.

Rodriguez stressed that she does not support this and is concerned.  Jamie Bouthillier feels that Measure K could be used to fund the project and once the reimbursement comes in, it can be put back.
 Raghda Zacharia states she would not improve anything until the Budget is in place.  Council member Burton is not comfortable using Measure K as cash flow for the Rail with Trails project. He would like to have more discussion on this topic before making a decision on it. Mr. Burton would like to discuss it more at the Budget Workshop scheduled for August 20th.
 Council member Gonzalez would also like to have more discussion on the item at the Budget Workshop. He would be prepared to make a decision then.  Mayor Allman would like this to be brought back to the August 27th City Council meeting. Interim City Manager Wilburn states that it is fine to wait until the next City Council meeting.

No Motion item will be brought back at the August 27th City Council meeting.

10. City Council Announcements, Communications and Reports Councilmember Stranske
 Mendocino Solid Waste Management Authority (MSWMA) – Received message that the meeting was cancelled.
 Economic Development & Financing Corporation (EDFC) – Meets August 14, 2025.

Councilmember Gonzalez
 League of California Cities/Redwood Empire Division – Meets on August 22, 2025.

Vice Mayor Alaniz
 Mendocino Council of Governments (MCOG) – Meets August 18, 2025.

Mayor Allman
 Mobile Vendor Ad Hoc Meeting – Not ready to bring an ordinance to the Council, will be meeting again on September 23, 2025, at 5:00 pm in council chambers. Looking for input from Chamber of Commerce, Food Truck Vendors, Brick and Mortar Businesses and anyone that has concerns.
 There is an opening on the Measure K Committee, an announcement will be advertised in the newspaper as well as the City Website.

Willits City Council Minutes of August 13, 2025 Page 5 of 5  Council member Burton requested that the City Manager position be advertised locally to see what response the city may receive.

Public Comment: None presented.

No action taken.

11. Good & Welfare
 Vice Mayor Gonzalez – School is starting please be mindful of your speed while driving.  Mayor Alaniz – Once in a Blues Moon Festival is on September 16th.  Delores Pedersen, City Clerk announced that Willits Frontier Days will be hosting a movie night at the grounds on August 23, 2025, as a fundraiser for the Willits Frontier Days Juniors Group.

13. Closed Session Notice
None presented.

14. Adjournment
Mayor Allman declared the meeting adjourned at 8:02 p.m.

For more information on the August 13, 2025 Willits City Council Meeting please view the recording on YouTube.
_____________________________
TOM ALLMAN, Mayor
City Council for the City of Willits
ATTEST:
__________________________

DELORES PEDERSEN
City Clerk
Item No.5b
Meeting Date: August 27, 2025

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Manuel Orozco, Finance Director
Agenda Title: ADOPT A RESOLUTION AUTHORIZING CONTINUATION OF MUNICIPAL OPERATIONS OF ANOTHER THIRTY (30) DAYS BASED UPON THE FISCAL YEAR 2024-2025 BUDGET.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 15 minutes.

Summary of Request: The Finance Department seeks the City Council to authorize a continuation of municipal expenditures for an additional thirty (30) days until the Council can adopt a budget for the Fiscal Year 2025-2026. The adoption of the accompanying Resolution ensures the continued funding for services and programs at existing levels.

Continuation is necessary due to the need to see financials for the Fiscal Year 2023-2024.

Recommended Action: Adopt the accompanying Resolution authorizing continuation of municipal operations based upon the Fiscal Year 2024-2025 Budget.

Alternative(s): None recommended.

Fiscal Impact: Financial activities will continue in Fiscal Year 2025-26 for ongoing and routine expenditures using the budgetary framework and authorities stipulated in the 2024-25 Adopted Budget.

Personnel Impact: None.
2021 Adopted Goals: This item addresses Goal #1 for Administration…Develop and implement a longrange Fiscal Sustainability Plan for City finances in order to promote the City’s economic health by balancing revenues and expenditures to solve systemic problems.

California Environmental Quality Act: Not applicable.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS AUTHORIZING CONTINUATION OF MUNICIPAL OPERATIONS BASED UPON THE 2024-2025 BUDGET FOR AN ADDITIONAL THIRTY (30) DAYS.

WHEREAS, traditionally, the Willits City Council conducts hearings on its budget for the upcoming fiscal year in May and June in order to approve the budget before the beginning of the fiscal year commencing July 1st; and
WHEREAS, this year’s budget preparation encountered obstacles due to the delay of the Fiscal Year 2023-2024 Audit, the continued implementation of new accounting software, and staff availability due to extraordinary circumstances; and WHEREAS, these delays will prevent the City Council from adopting the Fiscal Year 2025-2026 Budget prior to the development of financials for the Fiscal year of 2023-2024; and WHEREAS, the City seeks to remain in compliance with Government Code Section 37208 (b) Stating “Warrants or checks drawn in payment of demands certified or approved by the city clerk as conforming to a budget approved by ordinance or resolution of the legislative body need not be audited by the legislative body prior to payment”; and WHEREAS, the City Council adopted Resolution No.2025-29 on June 25, 2025 and Resolution No. 2025-33 on July 23, 2025 authorizing continuation of Municipal Operations based upon the 2024-2025 Budget with the stipulation that no equipment is purchased and only hire critical staff in the Police Department , Water and Wastewater Departments; and WHEREAS, in order to provide continuing funding for City services and programs, it is necessary to adopt a continuing appropriation for another 30 days with an expenditure budget based upon the Annual 2024-2025 Budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby authorize, as follows:

1. That the operating budget, exclusive of capital projects and equipment, for the Annual budget of 2024-2025, is hereby established as the appropriation and expenditure level, until the City Council's adoption of the Budget for Fiscal Year 2025-2026.

2. City staff shall continue to process warrants in accordance with the law.

3. The Finance Director may draw warrants or checks in payment of certified payroll and other demands and certify that they comply with the proposed Budget, subject to final ratification by the City Council after the final Budget is adopted for Fiscal Year 2025- 2026. As so certified, said warrants and checks shall be deemed to comply with Government Code Section 37208.

4. This Resolution shall terminate upon adoption of an approved Budget for Fiscal Year 2025-2026.

PASS, APPROVED AND ADOPTED, this ___ day of _______ 2025.

Resolution No. 2025-__ Page 2 of 2 August 27, 2025

THE CITY OF WILLITS
_________________________
Tom Allman, Mayor
ATTEST:

I, Delores Pedersen, City Clerk of the City of Willits, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Willits, California, at its regular meeting held on the 27th day of August 2025, by the following vote:

AYES:

NOES:

ABSENT:
_________________________
Delores Pedersen, City Clerk
Item No.

Meeting Date: August 27, 2025

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Walter Kolon-Services and Facilities Director
Agenda Title: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS APPROVING THE ACCEPTANCE OF FEDERAL AND/OR STATE FUNDS FOR PROJECT BRLS-508290680, EAST VALLEY BRIDGE REPLACEMENT, PRELIMINARY DESIGN.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 15 minutes.

Summary of Request: The East Valley Street Bridge at Broaddus Creek is in deteriorating condition and need of major repairs or complete replacement to bring it up to current standards of vehicular, structural, seismic and pedestrian safety. Bridge projects are some of the most expensive roadway infrastructure projects for any city or county.

In 2021 an application for bridge funding was made to the State of California Department of Transportation and the Local Assistance Program. On August 13 2025 the program approved funds to start the design process to replace the East Valley Street Bridge over Broaddus Creek. The State of California will contribute an 80% portion of state and federal funds for the design and later the construction of the bridge.

Approving the attached Resolution will start an agreement between the State of California DOT and the City of Willits to proceed with the funding process. When the City of Willits is ready to proceed these initial funds will pay for design of the new structure.

Recommended Action: Approve Resolution to accept California State Department of Transportation funding.

Alternative(s): Receive no State or Federal funding for the design and replacement of the East Valley Street Bridge.

The City of Willits would not be able to start or complete this project without financial assistance.

Fiscal Impact: Project is an 80/20 split. The City of Willits must provide 20% funding against Federal funds of 80%.

The initial design phase has been estimated at $863,000. Of this Federal Funds total $690,400 with the City of Willits contributing $172,600.

Personnel Impact: None
Identified City Council Conflict of Interest: No conflict identified. 2021 Adopted Goals: This item meets Goal #1 for Services & Facilities…Maintain and improve infrastructure systems of water, wastewater, public facilities, and streets capable of managing future growth while responding to current City needs.

California Environmental Quality Act: N/A
This Item Relates to the following General Plan Element : N/A Land Use Circulation Conservation and Open Space Noise Housing Public Services and Facilities, Parks and Recreation Economic Development
Reviewed by: City Manager City Attorney Assistant City Manager City Clerk Finance Director Human Resources
Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ Resolution No. 2025-__ Page 1 of 1 August 27, 2025
RESOLUTION NO. 2025-_____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS APPROVING THE ACCEPTANCE OF FEDERAL AND/OR STATE FUNDS FOR PROJECT BRLS-508290680, EAST VALLEY BRIDGE REPLACEMENT, PRELIMINARY DESIGN.

WHEREAS, the City of Willits is eligible to receive Federal and/or State funding for certain Transportation Projects, through the California Department of Transportation and; WHEREAS, On August 13, 2025 after a lengthy application process the City of Willits was approved for funding by the State of California Department of Transportation for the preliminary replacement design of the East Valley Street Bridge in Willits, Project BRLS-508290680, and; WHEREAS, in this agreement, Av. Project ID 0123000118, has an estimated cost total of $863,000 of which Federal Funds total $690,400 and Local Funds amount to $172,800, and:

WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements need to be executed with the California Department of Transportation before such funds could be claimed and
WHEREAS, the City of Willits wishes to delegate authorization to execute these agreements and any amendments thereto to the Director of Public Works (Services & Facilities) or their designee be authorized to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements and any amendments thereto with California Department of Transportation.

NOW, THEREFORE, the City Council of the City of Willits approves acceptance of initial design funding from the State of California Department of Transportation for the East Valley Bridge and authorizes the Director of Public Works (Services and Facilities) to sign the agreement.

PASSED, APPROVED AND ADOPTED, this __ day of August __, 2025.

THE CITY OF WILLITS
______________________________
TOM ALLMAN, Mayor
ATTEST:

AYES:

NOES:

ABSENT:
______________________________
DELORES PEDERSEN, City Clerk

Item No. 8a
Meeting Date: August 27, 2025

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Rod Wilburn, Interim City Manager
Agenda Title: DISCUSSION OF A DRAFT ORDINANCE ESTABLISHING AN ENTERTAINMENT ZONE IN

DOWNTOWN WILLITS
Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 15 minutes.

Summary of Request: The City Council is asked to discuss two draft versions of an Entertainment Zone Ordinance.

Recent changes to California law (SB 969, effective January 1, 2025) allow cities to designate Entertainment Zones permitting the regulated consumption of alcoholic beverages in public rights-of-way during approved events. • Draft Ordinance 1 establishes a flexible framework in which the City Council may create Entertainment Zones by resolution, supported by management plans covering security, sanitation, and compliance. • Draft Ordinance 2 designates specific boundaries along Main Street and East Commercial Street, sets operating standards such as container types and alcohol quantity limits, and outlines detailed permit procedures for events, street closures, and sanitation.

Establishing Entertainment Zones has the potential to create a positive economic impact by encouraging visitors to spend more time downtown, increasing customer traffic for restaurants, retailers, and entertainment venues, and attracting new cultural and community events. In turn, this can strengthen the local economy, generate sales tax revenue, and enhance the City’s position as a regional destination for dining and entertainment.

The purpose of this discussion is to receive Council input on which framework (or combination of elements) best supports the City’s goals of downtown economic vitality, safe and family-friendly events, and protection of public health and safety. Staff will incorporate Council direction into a final ordinance for future consideration.

Background: SB 969 (Effective Jan 1, 2025) authorizes California cities to create Entertainment Zones where regulated public alcohol consumption is allowed during permitted events. This provides new tools for cities to activate downtowns and enhance event programming while maintaining control over safety and sanitation.

Recommended Action: Provide direction to staff regarding preferred provisions and boundaries for an Entertainment Zone Ordinance. Staff will return with a final ordinance for introduction and adoption at a future Council meeting.

Alternative(s): None recommended.

Fiscal Impact: None.

Personnel Impact: None.

Identified City Council Conflict of Interest: None.
2021 Adopted Goals: Develop and implement economic development strategies for the City of Willits that will promote the development and maintenance of a strong business sector including business retention and attraction, tourism, marketing and revenue generation.

California Environmental Quality Act: Does not apply. Discussion item only.

Section 2. Definitions
a. Entertainment Zone: A designated area as defined by City Council resolution, permitting the consumption of alcoholic beverages on public streets, sidewalks, or public rights-of-way during approved events, in accordance with California Business and Professions Code Sections 23039.51 and 256902.
b. Entertainment Zone Event: An event permitted by the City within the boundaries of an Entertainment Zone and during authorized hours.
c. Participating Licensee: Any business with a valid City-issued alcohol license and a license from the California Department of Alcoholic Beverage Control (ABC) that elects to participate in Entertainment Zone privileges.

Section 3. Establishment of Entertainment Zones
a. The City Council may establish one or more Entertainment Zones by resolution, specifying geographic boundaries and permissible hours of operation. b. Prior to adoption, the City shall provide notice to all businesses and residents within or adjacent to proposed zone boundaries and hold a public hearing.

Section 4. Permitted Activities and Conditions
a. Consumption of alcoholic beverages is allowed on public rights-of-way within Entertainment Zones only during approved special events and hours as specified by ordinance or management plan.
b. Only specified beverage containers (no glass or metal) are allowed for on-the-go consumption; all containers must display the Entertainment Zone logo or City seal. c. Delivery of alcoholic beverages is prohibited except to residential or non-licensee businesses within the zone.
d. Special Event Permit is required to activate the zone for any event, including road closures or amplified entertainment.

Section 5. Participation Requirements for Businesses
a. Licensees must notify the ABC annually (via the Entertainment Zone Notification Tool) and the City of their intent to participate in any zone event.
b. Only businesses with proper ABC licenses within the zone boundaries may participate. c. Businesses must comply with all management plan requirements, hours, signage, and container rules.
d. Businesses must maintain responsible service, security, and clean-up practices during events.

Section 6. Management Plan and Oversight
a. The City will prepare a Management Plan for each zone detailing operational protocols: security, sanitation, signage, crowd management, emergency access, and compliance evaluation. b. The City may modify or suspend zone operations for health and safety reasons or noncompliance.

Section 7. Public Safety and Compliance
a. All participants and businesses must cooperate with law enforcement, City staff, and ABC inspections.
b. Violations of ordinance or management plan may result in fines, suspension of participation, or reporting to the ABC for additional action.
c. Zones must be conspicuously marked during events using signage and/or sidewalk decals.

Section 8. Severability
If any provision of this ordinance is determined invalid, the remainder shall continue in effect.

Section 9: Street Closure Requirements
a. Permit Requirement
i. Any closure of a public street, sidewalk, or public right-of-way within an Entertainment Zone for special events requires prior approval through a City-issued Street Closure Permit or a Parade/Special Event Permit, pursuant to the Willits Municipal Code. b. Application
i. Event organizers must complete and submit the “Parade Special Event Application Packet” to the City of Willits a minimum of 30 days before the proposed event. ii. When encroachment on public rights-of-way is required, an Encroachment Permit must also be obtained.
c. Submission Requirements
i. Applications must include a detailed site plan of the street(s) to be closed, showing all event elements (stages, booths, barricades, emergency access) and provisions for ADA compliance.
ii. Affected residents and businesses must be notified in writing at least 48 hours prior to the event. A petition demonstrating neighborhood support may be required for neighborhood events.
d. Public Safety and Access
i. Emergency vehicle access must be maintained at all times as specified by the City and public safety agencies.
ii. The applicant is responsible for securing barricades, signage, and for ensuring public safety and orderly traffic diversion during the street closure. e. Clean-Up and Restoration
i. The applicant is responsible for cleaning streets and sidewalks following the event, and for restoring all public property to pre-closure conditions. f. Compliance
i. All closures must comply with other relevant Willits Municipal Code provisions, including Title 12 (Streets, Sidewalks, and Public Places), and any additional conditions set by the City.

References
1CA Bus & Prof Code § 23039.5 (2024)
23039.5. “Entertainment zone” means a zone created by a city, county, or city and county ordinance on or after January 1, 2025, that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights-of-way.
(Amended by Stats. 2024, Ch. 869, Sec. 1. (SB 969) Effective January 1, 2025.) 2CA Bus & Prof Code § 25690 (2024)
25690. A city, county, or city and county that establishes an entertainment zone shall do both of the following:
(a) Establish a process or procedure by which persons in possession of alcoholic beverages in the entertainment zone may be readily identifiable as being 21 years of age or older. (b) Upon establishing or modifying the entertainment zone, provide all of the following to the department:
(1) A copy of the ordinance establishing or modifying the entertainment zone. (2) Information as may be necessary to identify the boundaries of the entertainment zone. (3) The days and hours of operation of the entertainment zone. (4) The types of alcoholic beverages permitted within the entertainment zone. (5) The approved nonglass and nonmetal containers in which alcoholic beverages may be authorized. (Amended by Stats. 2024, Ch. 869, Sec. 5. (SB 969) Effective January 1, 2025.) City of Willits Draft Entertainment Zone Ordinance
Section 1. Purpose and Findings
a. The City seeks to promote safe, family-friendly cultural, arts, music, and dining activities in the downtown core while protecting public health, safety, and welfare. b. The Willits Municipal Code authorizes the City to regulate the use of public rightsof-way and to require permits and conditions for temporary street closures, traffic control, and events.

Section 2. Definitions
a. Entertainment Zone (EZ): The public right-of-way and abutting sidewalks along (1) Main Street between Wood Street and Commercial Street, and (2) East Commercial Street from Main Street to Humboldt Street.
b. Event: Any organized activity within the EZ that uses public right-of-way or materially affects traffic, parking, or public safety.
c. Alcoholic Beverage: As defined by California Business and Professions Code, when authorized per this ordinance and applicable ABC licenses. d. Organizer: The person, entity, or City department responsible for an Event in the EZ.

Section 3. Entertainment Zone Established
a. The Entertainment Zone is hereby established as defined in Section 2(A). b. The City Manager or designee may post signs identifying the EZ and the hours and conditions applicable to Events.

Section 4. Alcohol Possession and Service Within the EZ (When Authorized by Permit)
a. Container Type: Alcoholic beverages may only be possessed in the EZ in plastic or aluminum containers. Glass containers are prohibited. b. Quantity: No individual may possess more than two alcoholic beverages at one time within the EZ.
c. Hours: Alcohol possession in the EZ under this ordinance is permitted only during permitted Events and only within the times stated on the permit. d. Licensing: Service and sales require all applicable ABC licenses/authorizations and compliance with Police Department conditions.
e. Other Codes: Nothing herein authorizes conduct that violates state law or City noise or public peace provisions.

Section 5. Trash, Sanitation, and Public Safety
a. Organizers must provide adequate restrooms, handwashing stations, trash and recycling, and post-event cleanup.
b. Open flames, generators, stages, inflatables, and similar installations require Fire Department clearance and permits as required.
c. Organizers must comply with any City noise limits and conditions.

Section 6. Event Permit Required
a. Special Event / Parade Application: Any Event within the EZ requires an approved application from the Community Development Department, including event details, route/footprint, amplified sound, vendors, and any requested street closures/barricade locations.
b. Alcohol Permit (if serving alcohol): Organizers must obtain any required Willits Police Department alcohol permit and comply with conditions. c. Signs associated with Events must comply with the Zoning Code; temporary special event signs may be allowed under City conditions.

Section 7. Temporary Street Closures and Traffic Control a. Encroachment Permit: Required for any temporary street or lane closure, use of public right-of-way, or barricade placement. Must include a MUTCD-compliant Traffic Control Plan and insurance.
b. Police/Fire Review: Applications impacting traffic or public safety require review/approval.
c. Posting and Barricades: Organizers must post temporary no-parking signs and deploy barricades, cones, and detour signs.
d. ADA and Access: Organizers must maintain ADA-compliant and emergency access.
e. Coordination: If a closure affects state facilities, obtain necessary external approvals.

Section 8. Conditions of Approval; Insurance and Indemnity a. Organizers shall defend, indemnify, and hold harmless the City, and provide required insurance.
b. City officials may impose additional conditions to protect safety and minimize impacts.

Section 9. Enforcement; Suspension or Revocation
a. Violations constitute a public nuisance and may be enforced. b. The City may suspend, or revoke permits for violations or unsafe conditions.

Section 10. Fees
Application, encroachment, review, policing, and sanitation fees shall be established by resolution.

Section 11. Severability
If any provision is held invalid, the remainder shall not be affected.

Section 12. Effective Date
This ordinance shall take effect thirty (30) days after adoption.

Item No. 9a
Meeting Date: August 27, 2025

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Dusty Duley, Community Development Director
Agenda Title: DISCUSSION AND POSSIBLE INTRODUCTION OF PROPOSED ORDINANCES TO AMEND TITLE 17 (ZONING) OF THE WILLITS MUNICIPAL CODE INCLUDING THE MODIFICATION OF CHAPTER 17.06 ENTITLED USE GROUP CLASSIFICATIONS AND THE ADDITION OF CHAPTERS 17.23 ENTITLED MAIN STREET MIXED USE (DU) ZONE AND 17.25 ENTITLED GENERAL MIXED USE (GU) ZONE Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 30 minutes.

Summary of Request: On October 24, 2024, the Willits City Council adopted a comprehensive update to the General Plan Land Use Element, the first since 1992. A central priority of this update is the creation of new mixed-use zoning districts for downtown and other areas of the City to encourage vibrant, walkable neighborhoods, promote economic development, and ensure consistency between the Zoning Map and the updated General Plan Land Use Map.

To implement these goals, staff has prepared ordinances to:
• Establish two new zoning districts: the Main Street Mixed Use (DU) Zone and the General Mixed Use (GU) Zone;
• Amend the Zoning Map to apply these new zones, as well as make other zoning adjustments to ensure consistency with the General Plan Land Use Map;
• Eliminate off-street parking standards in the downtown area in certain situations to support building reuse and promote economic vitality;
• Adopt zoning regulations to limit the presence of large franchise or formula-based businesses in Downtown Willits in order to preserve downtown character and support locally owned businesses; • Identify additional permitted land uses in the DU and GU Zone, including creation of a new “nanobrewery use type” to promote business growth. .

The Main Street Mixed Use Zone will be applied to the City’s downtown core, enabling adaptive reuse of commercial structures, reduced parking requirements, and requiring use permits for formula-based businesses. The General Mixed-Use Zone will be applied to areas with appropriate infrastructure and services to support mixed-use development. Additional zoning changes are proposed to align existing zoning with General Plan land use designations.

Recommended Action: Conduct a public hearing and

1. Introduce, reading the title of, and waiving further reading of a proposed ordinance to amend Title 17 (Zoning) of the Willits Municipal Code including the modification of Chapter 17.06 entitled Use Group Classifications and the addition of Chapters 17.23 entitled Main Street Mixed Use (DU) Zone and 17.25 entitled General Mixed Used (GU) Zone.

2. Introduce, reading the title of, and waiving further reading of a proposed ordinance Alternative(s): Provide direction to staff to modify the ordinances.

Fiscal Impact: The proposed ordinances will not have a direct fiscal impact on the City’s General Fund.

Implementation may encourage private reinvestment and economic development in Downtown and mixed-use areas, which could increase sales tax and property tax revenues over time. Any future costs related to monitoring, code enforcement, or application review will be covered through existing staff resources and standard permitting fees.

Personnel Impact: Implementation of the proposed ordinances will be carried out by existing Community Development Department staff. No additional staffing is anticipated. Staff will administer zoning amendments, permit processing, and compliance monitoring as part of ongoing departmental responsibilities.

Identified City Council Conflict of Interest: None.
2021 Adopted Goals: CDD Goal #3 Develop and implement economic development strategies for the City of Willits that will promote the development and maintenance of strong business sector including business retention and attraction, tourism, marketing and revenue generation.

California Environmental Quality Act: The Zoning Text Amendments, and Zoning Map Amendments were fully analyzed in the certified Program Environmental Impact Report (EIR) prepared and adopted for the Land Use Element Update. No additional environmental review is required.

CITY COUNCIL AGENDA STAFF REPORT
MEETING MEETING DATE: September 28, 2025 AGENDA ITEM NO:

STAFF REPORT: ZONING REGULATIONS AND ZONING MAP AMENDMENTS PAGE 1
TO: Honorable Mayor and Members of the City Council
PREPARED BY: Planwest Partners, Inc.

ITEM: ZONING TEXT AND MAP AMENDMENTS TO IMPLEMENT THE 2024

GENERAL PLAN LAND USE ELEMENT UPDATE
REQUEST: Introduction of proposed Ordinances to amend Title 17 (Zoning) of the Willits Municipal Code including the modification of Chapter 17.06 entitled Use Group Classifications and the addition of Chapters 17.23 entitled Main Street Mixed Use (DU) Zone and 17.25 entitled General Mixed Use (GU) Zone.

SUMMARY
On October 24, 2024, the Willits City Council adopted a comprehensive update to the General Plan Land Use Element Update, last updated in 1992. An important priority for the Land Use Element update is the adoption of a mixed use Zone for the City’s downtown area and a general mixed use Zone for other areas within the City to encourage vibrant and walkable neighborhoods and to encourage economic development as well as a to amend the Zoning Map to achieve consistency with the General Plan Land Use Map.

Ordinances have been prepared to create two new mixed-use Zones, a Main Street Mixed Use Zone (DU) and a General Mixed Use (GU) Zone, to implement the approved Plan Land Use Policy and Land Use Designations and to revise the Zoning Map to be consistent with changes in the General Plan Land Use Map. These new principal Zones and Zoning Map changes were fully described and analyzed in the Program EIR. As a result, no additional environmental review is required to support the approval of the proposed ordinances.

Adoption of the proposed Zoning Regulation text amendments will implement the Land Use Element Goal LU-4, Downtown, to activate Main Street as the vibrant commercial and cultural core of the City; and implement Land Use Element Policy LU-3.3, Mixed Use Areas, to encourage development that creates vibrant and walkable areas, reduces greenhouse gas emissions, and promotes economic development within downtown and neighborhood areas by implementing mixed use land use designations that support a range of commercial, office and residential uses; enable the flexible use of existing structures and vacant land. Adoption of a mixed-use zones and the revised Zoning Map will implement Land Use Element Policy LU-9.2, Zoning Map and Regulations, will ensure that the Zoning Regulations are consistent with the STAFF REPORT: ZONING REGULATIONS AND ZONING MAP AMENDMENTS PAGE 2
policies of the General Plan, and ensure that the Zoning Map is consistent with the General Plan Land Use Map.

BACKGROUND
California state law requires that each city adopt a general plan “for the physical development of the city and any land outside its boundaries which bears relation to its planning” (California Government Code, Section 65300). A general plan is a “constitution for future development,” which is how the California Supreme Court has described it. The general plan establishes the types, locations, and intensities of land uses as well as applicable resource protection and development policies. Land use maps are used to show where specific land use are intended to occur, natural and hazard constraints, and public facilities.

General Plans are intended to be comprehensively updated at least every 20 years. The City of Willits’ General Plan Land Use Element was last comprehensively updated and adopted in 1992. Since then, the City's land use needs have changed due to demographic and economic conditions and updates are also required to comply with state guidelines and laws. Since 1992, there have been no comprehensive updates to the General Plan or its Elements, except for the Housing Element which was last updated in 2019. A draft Safety Element Update was prepared following the adoption of the Mendocino County Multi-Jurisdictional Hazard Mitigation Plan and the City’s Jurisdictional Annex (Local Hazard Mitigation Plan) is in draft form and should revised for consistency with state laws approved after its preparation and adopted within six months of the adoption of the Land Use Element Update.

In 2022, the Willits initiated a project to update the Land Use Element of the City of Willits General Plan. The amendment to the City of Willits Land Use Element was approved by the City Council on October 24, 2024. The planning process included:
• extensive Tribal, public and agency outreach;
• the identification of a Planning Area that includes the City as well as surrounding land that bears relation to City planning;
• changes to existing and new Land Use Element policy intended to expand the land supply for housing of all types, provide for focused planning for Willits’ commercial centers, provide for land use flexibility and compatibility, ensure community health and vitality and environmental health and sustainability, and to expand and improve land use designations and general plan maintenance;
• changes to Land Use Designations within the City to support mixed-use development, residential, and commercial development, as well as for open space purposes, and changes to apply Land Use Designations that best reflect the use and character of existing development within the City where the current Land Use Designation is not appropriate;
• proposed expansions to the City’s SOI, with the application of appropriate City Land Use Designations, to support a potential SOI Amendment application to the Mendocino Local Agency Formation Commission;
STAFF REPORT: ZONING REGULATIONS AND ZONING MAP AMENDMENTS PAGE 3
• proposed amendments to the Zoning Map and Zoning Regulations to ensure consistency with the Land Use Element and Land Use Map, which may occur simultaneously with or closely following Land Element adoption, and that may include the application of consistent Zoning Classifications and edits to the Zoning Regulations to ensure consistency.

The Land Use Element identifies a number of priority implementation programs, foremost among them is: (1) the adoption of new Mixed Use Zoning Classifications consistent with the Mixed-Use Land Use Designation included in the Land Use Element and applied to the Land Use Map; (2) revisions to the Zoning Map to be consistent with the adopted changes to the Land Use Map; and (3) the submission of an application to the Mendocino County Local Agency Formation Commission (LAFCo) to expand the City of Willits Sphere of Influence to match Land Use Element Figure 1-2, Proposed Sphere of Influence, and Implementation Program LU-1B, Seek Approval of an Expanded Sphere of Influence. This staff report contains recommended ordinances that, upon adoption, will make these priority Zoning text and Map amendments, and Community Development Department staff has prepared an application to LAFCo to amend the Sphere of Influence consistent with the General Plan Land Use Element.

ZONING TEXT AMENDMENTS AND ZONING MAP ADOPTION

COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The Notice of Preparation (NOP) was published on March 10, 2023, by the Office of Planning and Research (State Clearing House #2023030321). CEQA Guidelines Section 15082 (b) requires a 30-day response period for input on the scope and content of the EIR. The NOP review period ended on April 10, 2023. Sections 1.1 Project Background and Purpose summarizes the public scoping process.

The Draft EIR was made available for public review on July 25, 2024. The review period lasted over 45 days and ended at 5:00 pm on September 13, 2024. The document was made available for review at City of Willits Community Development department at 111 E. Commercial Street, Willits, CA and online at: https://willitslanduseupdate.com/. The Draft EIR was uploaded to the State Clearinghouse on July 25, 2024, and available for download at https://ceqanet.opr.ca.gov/Project/2023030321, and was distributed to local, state, and federal responsible and trustee agencies and tribal governments. The general public was advised of the Draft EIR through a Notice of Availability posted at the County Clerk as required by law, and through a posting in a local newspaper, the Willits Weekly, on August 1, 2024. The Notice of Availability of the Draft EIR was also sent to the listserv of parties who signed up for project updates on the City of Willits Land Use Element Update project webpage (103 recipients) as well as emails to Tribal organizations, trustee agencies, responsible agencies, service providers, area schools, and regional planning agencies. A public hearing before the City Council was held on September 11, 2024, where public input on the Draft EIR was received.

Eight comment letters were received during the comment period.

A Final EIR was prepared that contains the comment letters and responses to each comment that was sent to the public agencies who commented on the Draft EIR and provided to the City Council for review and consideration on certification of the EIR as a full disclosure of potential impacts, mitigation measures and alternatives On October 24, 2024, the Willits City Council STAFF REPORT: ZONING REGULATIONS AND ZONING MAP AMENDMENTS PAGE 4
certified the Final EIR prepared for the Land Use Element Update and Sphere of Influence (Resolution No. 2024-56) and adopted a comprehensive update to the Land Use Element Update (Resolution No. 2024-57, Resolution No. 2024-58, and Resolution No. 2024-59). An important priority for the Land Use Element update is the adoption of a mixed use zone for the City’s downtown area and a general mixed use zone for other areas within the City to encourage vibrant and walkable neighborhoods and to encourage economic development as well as a to amend the Zoning Map to achieve consistency with the General Plan Land Use Map. This project also resolved some inconsistencies between resolves Zoning inconsistencies that existed since approval of the prior General Plan.

Resolution XX (Attachment A) certifies that the Zoning Text and Map Amendments are adopted in compliance with the California Environmental Quality Act and sets forth the required findings for approval, including findings relating to the consistency of the Zoning amendments with the Land Use Element.

ZONING TEXT AMENDMENTS
The proposed ordinance to amend the Zoning Regulations to implement the Land Use Element includes the following (see Attachment B):
• adds the " Main Street Mixed Use (DU)” Zone (Chapter 17.XX), which implements the LU-10.2 Mixed Use Land Use Designations, Main Street Mixed Use (DM-U). Land Use Designation and Implementation Measures of Land Use Element Goal LU-4, relating to Downtown, which seeks to activate Main Street as the vibrant commercial and cultural core of the City; and
• adds the "General Mixed Use (GU)” Zone (Chapter 17.XX), which implements the Policy LU-10.2, Mixed Use Land Use Designations, General Mixed Use (GM-U) Land Use Designation and Implementation Measures of Land Use Element Goal LU-3, relating to Willits Character, Vitality, and Sustainability.

The Main Street Mixed Use Zone would be applied to the traditional downtown core of the City of Willits where the Main Street Mixed Use Land Use Designation is generally applied to the City’s downtown area between Commercial and Oak Street. This Zone includes a range of allowable uses and flexible and appropriate lot standards, including reducing or eliminating onsite parking requirements, intended to enable the adaptive reuse and revitalization of existing commercial structures on Main Street. Consistent with Land Use Element Policy LU-4.8, Formula-Based Businesses, the Main Street Mixed Use Zone requires a use permit for formula based businesses as an interim step in restricting the location of large franchise, or formulabased, businesses within Downtown.

The General Mixed Use Zone is intended to be applied where the General Mixed Use Land Use Designation and could be applied to a variety of locations within the City where the existing or planned transportation alternatives, utilities, and services allow for mixed-use development that encourages walking, biking, and transit use. The General Mixed Use Land Use Designation is applied to areas north and south where the Main Street Mixed Use Land Use Designation is applied, along the west side of South Humboldt Street, west of City Hall on the south side of East Commercial Street, and to an area between Baechtel Road and the south end of Railroad Avenue.

STAFF REPORT: ZONING REGULATIONS AND ZONING MAP AMENDMENTS PAGE 5

ZONING MAP AMENDMENTS
The following proposed amendments to the Zoning Map (see Attachment C) are made where there are changes to the Land Use Designations applied to the Land Use Map, as follows:
• Once adopted, apply the Main Street Mixed Use “DU” Zone to land planned Main Street Mixed Use (DM-U) consistent with Policy LU-4.2 Main Street Mixed Use Land Use Designation.
• Once adopted, apply the General Mixed Use “GU” Zone to land planned General Mixed Use (GM-U).
• Apply the Residential-Estates “RE” Zone to lands planned Residential-Suburban (R-S) and to land is planned Residential-Medium Density-Urban Reserve (RM-UR), where the Residential-Estates “RE” Zone is applied to allow the continued economic use of specifically identified parcels to protect from premature subdivision and development, lands planning for future urban uses that area not now developed to urban densities or adequately provided with urban services but expected to develop to urban uses and densities when services are available.
• Apply the Single-Family Residence “R1” Zone to lands planned Residential-low Density (R-L) where City services are available or planned and single family residential is the dominant use;
• Apply the Medium Density Residence “R2” Zone to land planned Residential-Medium Density (R-M) that contain single and multiple family dwellings. • Apply the Multiple-Family Residence “R3” Zone to land planned Residential-Medium Density (R-M) that contain multiple family dwellings.
• Apply the Community Commercial “C1” Zone to land planned Commercial-General (CG) that may serve as business districts. • Apply the Heavy Commercial “C2” Zone to land planned Commercial-General (C-G) that contains heavy commercial uses.
• Apply the Heavy Industrial “MH” Zone to lands planned Industrial-General (M-G) that contain industrial uses.
• Apply the Agricultural “A” Zone to lands planned Agricultural-General (A-G) that contain agricultural lands.
• Apply the Open Space “OS” Zone to lands planned Open Space - Recreation (O-S) . • Apply the Public Facility “PF” Zone to lands planned Public - Service (P-S) that consists of public sites of schools, parks, civic centers, fairgrounds, airports, museums, libraries, auditoriums, utilities and infrastructure, corporation yards, and similar uses, or that may be investor-owned utility and quasi-public sites.

STAFF REPORT: ZONING REGULATIONS AND ZONING MAP AMENDMENTS PAGE 6
The following proposed amendments to the Zoning Map (see Attachment C) are made where there are no changes to Land Use Designations but the current Zoning Classifications are not consistent with the General Plan Land Use Designation according to the “Consistent Zones” identified in Table 10-1, as follows
• Assessor’s Parcel 005-190-20 planned R-M (no change as part of Land Use Element Update) and zoned R1, recommended to be zoned R2
• Assessor’s Parcel 005-215-22 through 005-215 25 previously planned R-M (no change as part of Land Use Element Update) and zoned MH, recommended to be zoned R2 • Assessor’s Parcel 005-216-05 previously planned R-M (no change as part of Land Use Element Update) and zoned PF, recommended to be zoned R3 • Assessor’s Parcel 005-010-04, 005-010-05, 005-020-34, 005-070-33, 005-080-10, and 005-080-11 previously planned R-S (no change as part of Land Use Element Update) and zoned R1, recommended to be zoned RE
• Assessor’s Parcel 006-182-30 previously planned M-G (no change as part of Land Use Element Update) and zoned R1, recommended to be zoned MH • Assessor’s Parcel 005-190-20 planned R-M (no change as part of Land Use Element Update) and zoned R1, recommended to be zoned R2
• Assessor’s Parcel 006-260-20 planned R-M (no change as part of Land Use Element Update) and zoned R1, recommended to be zoned R2
• Assessor’s Parcel 007-231-03 planned R-M (no change as part of Land Use Element Update) and zoned R1, recommended to be zoned R2
The amendments to the Zoning Map listed above have each been evaluated to assure consistency with the General Plan Land Use Element based on the “Consistent Zones” identified in Table 10-1, General Plan Land Use Designations.

RECOMMENDATION

1. Introduce, reading the title of, and waiving further reading of a proposed ordinance to amend Title 17 (Zoning) of the Willits Municipal Code including the modification of Chapter

17.06 entitled Use Group Classifications and the addition of Chapters 17.23 entitled Main Street Mixed Use (DU) Zone and 17.25 entitled General Mixed Used (GU) Zone.

2. Introduce, reading the title of, and waiving further reading of a proposed ordinance to amend the City Zoning Map to apply zoning classifications consistent with the General Plan Land Use Map adopted on October 24, 2024.

ATTACHMENTS
A. Ordinance amending the City of Willits Zoning Regulations to modify Use Group Classifications (Chapter 17.06) and establishing the Main Street Mixed Use (DU) Zone (Chapter 17.23) and General Mixed Use (GU) Zone (Chapter 17.25).

STAFF REPORT: ZONING REGULATIONS AND ZONING MAP AMENDMENTS PAGE 7
B. Ordinance amending the City of Willits Zoning Map to apply Zoning Classifications consistent with the City of Willits Land Use Map adopted on October 24, 2024.

C. Proposed City of Willits Zoning Map
1 ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILLITS, CALIFORNIA, ADOPTING AN AMENDMENT TO TITLE 17 (ZONING) OF THE WILLITS MUNICIPAL CODE INCLUDING THE MODIFICATION OF CHAPTER 17.06 ENTITLED USE GROUP CLASSIFICATIONS AND THE ADDITION OF CHAPTERS 17.23 ENTITLED MAIN STREET MIXED USE (DU) ZONE AND

17.25 ENTITLED GENERAL MIXED USE (GU) ZONE.

WHEREAS, the City of Willits (“City”) is a general law city and a political subdivision of the State of California; and
WHEREAS, on October 24, 2024, the City adopted the City of Willits 2024 General Plan Land Use Element Update (“LUE”) including the creation of the General Plan mixed use land use designations Main Street Mixed Use (DM-U) and General Mixed Use (GM-U); and WHEREAS, the proposed Ordinance would implement the 2024 General Plan LUE by establishing two new mixed-use zoning districts; and
WHEREAS, the new zoning districts are intended to encourage mixed use development, support economic vitality, stimulate the adaptive reuse of existing buildings, and encourage development of vacant lots; and
WHEREAS, the City Council conducted a public hearing in the Council Chamber of City Hall on _____________ 2025, for the purpose of introducing the various amendments to the City’s Zoning Code; and
WHEREAS, the City Council conducted a public hearing in the Council Chamber of City Hall on _____________ 2025, for the purpose of adopting various amendments to the City Zoning Code; and
WHEREAS, the City Council finds that the proposed amendments are consistent with the General Plan and other applicable City goals and policies; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, the City Council of the City of Willits has met, reviewed and discussed the proposed ordinance; and
WHEREAS, the proposed ordinance was fully analyzed under the certified Program Environmental Impact Report prepared for the 2024 Land Use Element Update adopted by the City Council on October 24, 2024, and no additional environmental review is required.

NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF WILLITS HEREBY ORDAINS AS FOLLOWS:

Title 17 - Zoning of the Willits Municipal Code is hereby amended by adding Chapter 17.23 entitled Main Street Mixed Use (DU) Zone and Chapter 17.25 entitled General Mixed Use (GU) Zone to read as follows:
2 Section 17.06.020 – Listing of use groups.

Group 15 Nanobrewery. Establishment conducting on-site brewing of less than three thousand (3,000) barrels of non-distilled fermented beverages annually for on-premises or offpremises consumption. May also include facilities for the tasting of different varieties of alcohol brewed on the premises or at an affiliated off-site location and may include serving and on-premises consumption of food and nonalcoholic beverages. An establishment producing more than three thousand (3,000) barrels annually is classified under the Heavy Industrial use group. Any odors emanating from fermentation or other processes associated with the businesses permitted within this use group shall be controlled and mitigated such that they do not have an adverse impact on nearby uses.

Examples: Production of non-distilled fermented beverages such as; Beer;
Sake;
Cider;
Wine;
Kombucha.
3 Chapter 17.23 - MAIN STREET MIXED USE (DU) ZONE
Sections:

17.23.010 – Purpose.

The Main Street Mixed Use (DU) Zone is applied to specific property within downtown Willits that fronts along the Main Street to enable the flexible use of existing commercial structures; encourage attractive buildings, sidewalk, and plaza areas, to provide a comfortable atmosphere for walking, biking, outdoor seating and gathering, and to promote commerce.

17.23.020 – Principal permitted uses.

The following are principal permitted uses1,2 in the DU zone:

Use Group 2 (e) Residential above ground floor commercial; 3 2 (j) Farm Worker Housing (six or fewer persons);
2 (l) Residential Care Home (six or fewer persons);
4 (b) Tourist accommodations;
4 4 (c) Bed and Breakfast Facilities;
6 Business and Professional Offices;
8 Business Support Services;
10 General Consumer Services;
12 (a) General Retail Trade;
14 (a) Eating Places;
15 Nanobrewery;
18 Social Services;
20 (a) Private Educational or Religious Institutions;
20 (b) Cultural or Social Institutions;
22 (a) Indoor sports and recreational facilities;
30 Light equipment repair and sale;
38 (a) Governmental institutions;
57 (d) Cannabis and industrial hemp laboratories and research.

1. Principally permitted uses are subject to the applicable performance standards of this zone.

2. Principally permitted uses may be subject to Formula-Based Business requirements in Section 17.23.050(A).

3. Residential unit(s) may also be located behind ground floor commercial that is located along the street frontage.

4. Tourist accommodations such as hotels and inns may be principally permitted where parking is minimized and located behind buildings and tourist accommodations such as motels, auto courts, and tourist cabins or courts shall be conditionally permitted and must locate parking behind the building.
4 17.23.030 – Conditional uses.

The following are conditional uses in the DU zone:

Use Group 2 a Single-family residence;
2 b Two-family residence;
2 c Group residential;
2 f Supportive Housing;
2 g Transitional Housing;
2 (i) Single-Room Occupancy Units;
2 (m) Residential care home (seven or more persons);
12 Retail trade, except general retail trade;
14 (b) Drinking places;
14 (c) Drive-in restaurants;
16 Adult entertainment;
20 (c) Health care institutions;
24 (a) Light automotive repair;
26 (d) General parking;
28 (a) Retail gasoline sales;
40 Festival activities;
46 Interment Services
48 Custom manufacturing.

17.22.040 – Lot regulations.

A. Minimum lot area 6,000 square feet;
B. Minimum lot width 60 feet;
C. Minimum yards:

1. Front None, except where frontage is in a block which is partially in an R zone, the front yard shall be the same as that
required in such R zone;

2. Rear 15 feet, except where a rear yard abuts on an alley, such rear yard may be not less than 5 feet;

3. Side None, except that a side yard of a lot abutting on a lot in an R zone shall be not less than the front yard required in such R zone;
D. Maximum building height 45 feet.

17.23.050 – Additional Regulations.

The following additional regulations apply to lots in the DU Zone, as indicated:

A. Formula-Based Businesses.
(1) Until such time that the City of Willits amends this Article to implement zoning regulations to restrict the location of large franchise, or formula-based, businesses within Downtown, as shown on Figure 3-2 Willits Focus Area, consistent with Land Use Element Policy LU-4.8, Formula-Based Businesses, all proposals to locate a 5 Formula-Based Business within the DU Zone shall first submit an application for a Use Permit. "Formula Business" shall mean a commercial business or use which, by ownership, franchise, contractual or other arrangement, established or recognized business practice, or membership affiliation, that maintains, as part of a group of ten or more similar businesses located outside the City of Willits, any of the following:
i. Business name common to similar businesses located elsewhere; ii. Appearance, business presentation or other similar features, which make the business substantially similar to other businesses located elsewhere; iii. Use of a trademark or logo common to similar businesses located elsewhere (not including logos or trademarks used to indicate participation in a buying group or cooperative of smaller independent businesses to obtain volume pricing, including but not limited to, National Automotive Parts Association (NAPA) or Independent Grocers Alliance (IGA), or to reflect mention by rating organization, including, but not limited to, AAA, Mobile, Michelin or internet sites like Trip Advisor);
iv. Standardized services or uniforms common to similar businesses, chains or franchises located elsewhere;
v. Architecture, exterior design, interior décor or signs common to similar businesses located elsewhere.

B. Front Yard Setbacks. Consistent with Land Use Element Policy LU-4.7 Main Street Shop Fronts, new commercial frontages along Main Street between Commercial Street and Oak Street should be located at the back of sidewalk. Any wider setback areas should consist of useable hardscape (concrete, pavers, etc.) and may provide shade to be used for public entry, gathering and outdoor commercial activity. Wider setbacks for buildings containing commercial uses along a street frontage may be appropriate where:
(1) where sidewalks are narrow;
(2) at building entrances and to provide building facade articulation; (3) for outdoor dining; plazas or other high activity public areas.

C. Special Off-Street Parking Provisions, consistent with Land Use Element Policy LU-4.4, Off-Street Parking.
(1) Non-Residential Use Exemptions. The following non-residential uses are exempt from the provisions of 17.52.030 Required Parking Spaces of Chapter 17.52 OffStreet Parking and Loading Regulations:
i. New building construction, and the expansion of an existing building, which is less than 1,000 square feet;
ii. Any new construction on lots less than 4,000 square feet; iii. A change from a previous non-residential use to a different principally permitted non-residential use, within an existing building. (2) Enlargement of Existing Buildings. Where parking is required for an enlarged building, additional parking is required only to serve the enlarged area. Additional parking is not required to remedy parking deficiencies existing prior to the enlargement.
6 (3) Residential use exemptions. The following residential uses, which are consistent with all provisions of this Chapter, are exempt from 17.52.030 Required parking spaces of Chapter 17.52 Off-Street Parking and Loading Regulations:
i. Accessory dwelling units;
ii. New residential units 500 square feet or less, regardless of the size of the overall structure, and located north of Broaddus Creek; iii. New residential units located north of Broaddus Creek that are deed restricted to households earning 80 percent or less of the Mendocino County area median income, including one, on-site, deed restricted or market rate manager's unit;
7 Chapter 17.25 - GENERAL MIXED USE (DU) ZONE
Sections:

17.25.010 – Purpose.

The General Mixed Use (GU) Zone is intended to provide for infill, pedestrian-oriented, and mixed-use development (a broad range of commercial uses, office, visitor accommodation, and higher density residential).

17.25.020 – Principal permitted uses.

The following are principal permitted uses1 in the GU zone:

Use Group 2 c Multiple Dwellings;
2 e Residential above ground floor commercial;
1 2 f Supportive Housing;
2 g Transitional Housing;
2 j Farm Worker Housing (six or fewer persons);
2 l Residential care home (six or fewer persons);
4 b Tourist Accommodations;
6 Business and Professional Offices;
8 Business Support Services;
10 General Consumer Services;
12 (a) General Retail Trade;
14 (a) Eating Places;
15 Nanobrewery;
18 Social Services;
20 (a) Private Educational or Religious Institutions;
20 (b) Cultural or Social Institutions;
22 (a) Indoor sports and recreational facilities;
30 Light equipment repair and sale;
38 (a) Governmental institutions;
57 (d) Cannabis and industrial hemp laboratories and research.

1. Residential unit(s) may also be located behind ground floor commercial that is located along the street frontage. 8 17.25.030 – Conditional uses.

The following are conditional uses in the DU zone:

Use Group 2 a Single-family residence;
2 b Two-family residence;
2 (i) Single-Room Occupancy Units;
2 (m) Residential care home (seven or more persons);
4 (c) Bed and Breakfast Facilities;
12 Retail trade, except general retail trade;
14 (b) Drinking places;
14 (c) Drive-in restaurants;
16 Adult Entertainment;
20 (c) Health care institutions;
24 (a) Light automotive repair;
26 (d) General parking;
28 (a) Retail gasoline sales;
40 Festival activities;
46 Interment Services;
48 Custom manufacturing;
12 Retail trade, except general retail trade;
14 (b) Drinking places;
14 (c) Drive-in restaurants;
16 Adult entertainment;
20 (c) Health care institutions;
24 (a) Light automotive repair;
26 (d) General parking.

17.25.040 – Lot regulations.

A. Minimum lot area 6,000 square feet;
B. Minimum lot width 60 feet;
C. Minimum yards:

1. Front None, except where frontage is in a block which is partially in an R zone, the front yard shall be the same as that
required in such R zone;

2. Rear 15 feet, except where a rear yard abuts on an alley, such rear yard may be not less than 5 feet;

3. Side None, except that a side yard of a lot abutting on a lot in an R zone shall be not less than the front yard required in such R zone;
D. Maximum building height 45 feet.

ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILLITS, CALIFORNIA,

AMENDING THE CITY OF WILLITS ZONING MAP TO APPLY ZONING CLASSIFICATIONS CONSISTENT WITH THE CITY OF WILLITS LAND USE MAP.

WHEREAS, the City of Willits (“City”) is a general law city and a political subdivision of the State of California; and
WHEREAS, on October 24, 2024, the City adopted the City of Willits 2024 General Plan Land Use Element Update (“LUE”) including amendments to the General Plan Land Use Map; and WHEREAS, all zoning districts (“Zoning Map”) must be consistent with the General Plan land use designations (“Land Use Map”); and
WHEREAS, the proposed Ordinance would adopt the City of Willits Zoning Map to be consistent with the General Plan Land Use Map; and
WHEREAS, the City Council conducted a public hearing in the Council Chamber of City Hall on _____________ 2025, for the purpose of introducing the various amendments to the City’s Zoning Code; and
WHEREAS, the City Council conducted a public hearing in the Council Chamber of City Hall on _____________ 2025, for the purpose of adopting various amendments to the City Zoning Code; and
WHEREAS, the City Council finds that the proposed amendments to the Zoning Map are consistent with the General Plan and other applicable City goals and policies; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, the City Council of the City of Willits has met, reviewed and discussed the proposed ordinance; and
WHEREAS, the proposed ordinance was fully analyzed under the certified Program Environmental Impact Report prepared for the 2024 Land Use Element Update adopted by the City Council on October 24, 2024, and no additional environmental review is required

NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF WILLITS HEREBY ADOPTS THE

CITY OF WILLITS ZONING MAP
M e n d o c i n o
C o u n t y
Brookside
Elementary
School
Willits
High
School
Blosser
Lane
Elementary
School C2
PF
PF
R3
RE
R2
C1
R1
R3
ML
R3
MH
RE
R3
RE-BL
R-2
R1
DU
C1
R-2
DU
R1
R1
R1-BL
ML
MH
MH
R1
R2
PF
GU
C2
IP
PF
R1
A
OS R1
R1
R2
MH
PF
MH
MH
C2
C1
PF
C1
MH
R2
GU
Redwood Ave.

Laural St.

E. San Francisco Ave.

N. Lenore Ave.

Margie Dr.

Railroad Ave.

Poplar Ave.

Mill Creek Dr.

Coast St.

E. Commercial St.

Blosser Ln.

Hollands Dr.

Exley Rd.

Center Valley Rd.

Franklin Ave.

Hearst Willits Rd.

Sherwood Rd.

Locust St.

East Hill Rd.

Baechtel Rd.

Muir Mill Rd.
£¤20
£¤20
£¤101
£¤101
£¤101
0 1,000 2,000 Feet
City of Willits
Parcels
Creeks
Zoning
Agricultural (A)
Community Commercial (C1)
Heavy Commercial (C2)
General Mixed Use (GU)
Main Street Mixed Use (DU)
Industrial Park (IP)
Limited Industrial (ML)
Heavy Industrial (MH)
Residential-Estates (RE)
Single-Family Residence (R1)
Medium Density Residence (R2)
Multiple-Family Residence (R3)
Open Space (OS)
Public Facility (PF)
City of Willits Zoning Map ´
Map Date: 2/26/2025
Willits
Municipal
Airport
City of Willits
Water Treatment
Plant
M e n d o c i n o
C o u n t y
Item No. 9b
Meeting Date: 08/27/2025

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Kenan O’Shea, Airport Operations
Agenda Title: APPROVAL OF THE SECOND FIVE-YEAR EXTENSION OF THE EXISTING LAND USE

AGREEMENT BETWEEN REACH AIR MED SERVICES LLC AND THE CITY OF WILLITS AT THE WILLITS MUNICIPAL AIRPORT TO ALLOW FOR CONTINUED OPERATIONS.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 15 minutes.

Summary of Request: On May 1, 2015 REACH Air Medical Services, LLC entered into a five-year ground lease agreement with the City for its leased premises at the Willits Airport. That agreement included two separate fiveyear options to extend the term. The first extension was made in 2020 and extended the term until April 30, 2025.

The parties now wish to extend the term for a second five-year term commencing retroactively from May 1, 2025 until April 30, 2030. During this extended term the rent will be increased from $600 to $800 per month pursuant to the parties' Consumer Price Index lease adjustment provisions.

In addition to the rent increase, the parties have agreed to a fuel flowage fee of .025 cents per gallon of fuel delivered to the airport for Lessee’s use. At the request of the Lessee the fuel fee is stated in a separate addendum and will commence effective October 1, 2025.

Recommended Action: Approve the 5-year extension of the lease agreement with REACH Air Medical Services, LLC and the Flow Fee Addendum provided.

Alternative(s): Deny the request
Fiscal Impact: Increased revenue for the Airport.

Personnel Impact: None
Identified City Council Conflict of Interest: None
2021 Adopted Goals: : This item meets Goal #1 for Services & Facilities…Maintain and improve infrastructure systems of water, wastewater, public facilities, and streets capable of managing future growth while responding to current City needs.

California Environmental Quality Act: The proposed agreements are exempt from the CEQA study and review process as they are not a project or development and pose no potential environmental impact.

The parties agree that the subject lease term is retroactively extended commencing May 1, 2025 for an additional term of five (5) years expiring on April 30, 2030, and that effective September 1, 2025 and continuing until expiration of this extended term, the LESSEE’S rent is increased to eight hundred dollars ($800) per month.

All other terms of the Lease Agreement shall continue during this extended term as set forth herein.

Dated: ___________________________
___________________________________ _________________________________ Rod Wilburn, Interim Willits City Manager Bryce Simpson, General Manager- Lessee

111 E. Commercial Street
Willits, California 95490
Tel | 707.459.4601
Fax | 707.459.1562
www.cityofwillits.org
Gateway to the Redwoods

FUEL FLOWAGE FEE ADDENDUM TO LEASE
REACH Air Medical Services LLC, (Lessee), and the City of Willits, (City) hereby agree that effective October 1, 2025 Lessee, in addition to its rent obligation, shall commence paying a Fuel Flowage Fee to City for all aircraft or jet fuel brought onto the Willits Municipal Airport and purchased by Lessee from outside vendors for fueling Lessee’s aircraft in the amount of the annual rates and charges established by city council resolution. The Fuel Flowage Fee for the current fiscal year and to be paid by Lessee commencing October 1, 2025 is twenty-five ($.025) cents per gallon.

TENANT shall provide the Airport Operations Manager with copies of all bulk fuel delivery invoices within five days of TENANT’s receipt of such invoices from the fuel provider. . Dated:_______________
______________________ ___________________________
Rod Wilburn Bryce Simpson, General Manager
Interim City Manager – City REACH Air Medical Services, LLC- Lessee 111 E. Commercial Street
Willits, California 95490
Tel | 707.459.4601
Fax | 707.459.1562
www.cityofwillits.org
Gateway to the Redwoods
Item No. 9c
Meeting Date: August 23, 2025

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Manuel Orozco, Finance Director
Agenda Title: PRESENTATION OF WORKING CAPITAL FOR FISCAL YEAR 2025/2026 BUDGET.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Summary of Request: This is a submission of an updated table of working capital. This worksheet includes accruals that are a net result of the recognition of revenue. At the end of the fiscal year multiple projects were billed out for revenues that were received in the July and August months. However, it should be noted that more entries are necessary for end-of-year activities. These accounts are expected to change as income from collections continue to come in from collection periods of the prior fiscal year. Under Generally Accepted Accounting Principles and guidance from the Governmental Accounting Standards Board, these accruals must post to the year in which the revenue was generated.

Update on budget process and exemption after 60 days after the beginning of its fiscal year, the city has contacted the county auditor regarding the delay of budget. The county auditor has provided direction for staff to continue the budget process.

Recommended Action: To review the presented Working Capital sheet and offer guidance on proposed options that were proposed in prior workshops.

Alternative(s): None recommended.

Fiscal Impact: None
Personnel Impact: None
Identified City Council Conflict of Interest: None.
2021 Adopted Goals: An annual operating budget is consistent with Goal #1 for Administration…Develop and implement a long-range Fiscal Sustainability Plan for City finances in order to promote the City’s economic health by balancing revenues and expenditures to solve systemic problems.

California Environmental Quality Act: Staff has found that adopting the Operating and Capital Improvement Plan Budgets is exempt from CEQA. The Operating and Capital Improvement Plan documents are used by the City as planning documents.

CEQA Guidelines section 15060(c) states “An activity is not subject to CEQA if … [t]he activity is not a project as defined in Section 15378.” CEQA Guidelines section 15378(b)(4) states “project” does not include…the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.” The Operating and CIP Budgets serve as a funding mechanism that does not commit the City to undertake any of the particular projects listed therein. As a result, the approval of the Operating and CIP Budgets are not considered a “project” subject to CEQA.

Before the City commits to the implementation of any of the individual projects listed in the CIP, the City analyzes whether the individual project has the potential to create any significant effect on the environment, and if so, completes appropriate environmental review for that project before its approval.

This Item Relates to the following General Plan Element : N/A Land Use Circulation Conservation and Open Space Noise Housing Public Services and Facilities, Parks and Recreation Economic Development
Reviewed by: Interim City Manager City Attorney Assistant City Manager City Clerk Finance Director Human Resources
Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ Exhibit A
Estimated 2025-2026 Ending
Working Capital Operating Operating Debt Service Gain Working Capital Fund # Fund Name 7/1/2025 Revenue Transfers In Expenses Transfers Out Principal (Loss) 6/30/2026 100 General Fund (120,656) $ 4,932,940 $ 2,000,000 $ (6,622,787) $ 189,496 $ 110 ISF - Information Technology 15,547 - 83,510 (138,000) (38,943) 150 Measure K Tax 3,606,067 1,166,865 (2,000,000) 2,772,932 -
222 Narcotics Forfeiture 99,139 - (5,000) 94,139
223 11470.2 H&S Restitution Prgm 37,696 - (1,000) 36,696 224 Abandoned Vehicle Abatement - - - -
225 Law Enforcement Assistance Adm 21,586 - (5,000) 16,586 226 DNA Cost Reimbursements 64,463 - (1,000) 63,463
230 General Plan Development 46,930 - - 46,930
235 Housing Rehabilitation - Admin 73,759 - - 73,759
237 PLHA Housing Rehabilitation 245,160 - - 245,160
239 Business Rehab Admin 4,037 - - 4,037
240 RMRA & SB-1 (172,534) 197,500 (129,597) (104,631)
245 Transportation Tax 47,714 1,250,000 (567,882) 729,832 250 East Hill Mitigation Fund 133,685 133,685
260 Landfill Dissolution (724,168) (724,168)
310 Lateral Repair Loans 35,037 35,037
420 Park Improvements 0 0
510 Wastewater Enterprise 4,393,790 4,393,790
530 Water Enterprise 3,322,787 3,322,787
550 Airport Enterprise (238,082) (238,082)
600 Sucessor Agency 1,025,598 1,025,598
-
Totals 11,917,553 $ $7,547,305 $2,083,510 ($7,470,266) ($2,000,000) $0 $0 $7,967,799

CITY OF WILLITS

PROJECTED WORKING CAPITAL
Fiscal Year 2025-26
Summary of Working Capital
1 10a
Monthly Achievements & Activities
●The Operations Meeting between City staff, Tenants, and Stakeholders was held on 7/17/25 at the Airport. Topics included the sale of 100LL/AVGAS and provisions to make fuel available to non-tenants, the FAA Directors determination and orders under the corrective action plan, and the status of the Global AIR-MED hangar development.
●It was discovered that the City of Willits had not claimed the annual $10,000 dollars per year of funding allocations from the State and was entitled to file a retro claim dating back four fiscal years. The $40,000 dollar sum will be available for use to facilitate eligible projects once the funding is secured. Projects will be determined at that time.

Project Updates
• The annual CALTRANS DOT Airport Fly-in inspection was conducted on 7/11/25. Recent tree removal and brush abatement efforts were recognized, and due to an error in the formula used to determine penetrations to the transitional slope that was not corrected by the controlling agency, many of the trees were formerly thought to be obstructions and potentially hazardous were deemed in fact not to be an issue. The previous formula of 34:1 was used for several years in the past, but after research done by the inspector, it was determined that as the airport does not have a precision approach in place, the correct formula is actually 20:1, making a much steeper slope and putting the majority of the trees in question well below the threshold. The trees identified as potentially hazardous and within the 20:1 slope are primarily along the Northwest side of the approach to Runway 16 are being evaluated and will be part of the upcoming tree survey to identify ownership and planning efforts to mitigate. • Work is being done to modify the existing City of Willits municipal code regarding use of the Airport and effectively make infractions such as trespassing a misdemeanor as ordered by the FAA Director in his letter of determination.
• The fire extinguishers were tested and recertified.

Staffing Items
• Airport Manager Cathy Moorhead is out on leave till an estimated return time of early September.

Budget Status
• No items to report.

AIRPORT – O28
July 2025 | Report
2 Focus for Next Month
● Work with legal to continue resolving the PART 16 Complaint and satisfy the FAA determination.

Meet the expectations declared by the Director in order to continue receiving the funding needed to sustain the facility. – This is ongoing
● Continue to seek reimbursement from the FAA for the runway rehabilitation project close out to fund the mandated requirements. This is ongoing
1 10b
Monthly Achievements & Activities
• Issued 27 Building Permits ...............................................Sixteen in June • New/Opened nine Code Enforcement Cases............Eleven in June. • Closed ten Code Enforcement Cases............................Zero in June. • Total of 58 active Code Enforcement Cases...............59 in June. • The Department required an average of 9.5 calendar days to issue May and July Building Permits.  Over the counter Permits (reroofs/minor electrical) are typically issued on the day of submission and are not included in the average processing timeline.  Timeline includes time for Fire Department to complete required review for certain permits.

Project Updates
• Caltrans Clean California Grant (Beautify Willits Project):
o Community cleanup day is scheduled for September 20th. Anyone interested in volunteering may contact Connor Stack with the Community Development Department. o Final design and specification for the new pavilion and bathroom remodel for Bud Snider Park are anticipated to be completed soon.
o Selected artists have begun mural projects to be hosted at the Rec Grove stage. • Mixed Use Zoning District and Zoning Map Update
o Staff has prepared zoning code amendments consistent with the recently adopted Land Use Element Update. Key measures include:
 Establish two new zoning districts: the Main Street Mixed Use (DU) Zone and the General Mixed Use (GU) Zone;
 Amend the Zoning Map to apply these new zones, as well as make other zoning adjustments to ensure consistency with the General Plan Land Use Map;  Eliminate off-street parking standards in the downtown area in certain situations to support building reuse and promote economic vitality;
 Adopt zoning regulations to limit the presence of large franchise or formula-based businesses in Downtown Willits to preserve downtown character and support locally owned businesses;
 Identify additional permitted land uses in the DU and GU Zone, including creation of a new “nanobrewery use type” to promote business growth.
• Mobile Vendor Ordinance
o The Ad Hoc Committee on Mobile Vending held a public meeting on August 12 to gather community feedback on potential regulations. Approximately 20 community members attended, including restaurant owners, food truck operators, and other stakeholders. Key themes discussed:

Community Development July 2025 | Report
2  Interest in balanced regulations that support both brick-and-mortar businesses and mobile vendors.
 Desire for clarity around operating hours, location restrictions, and permitting requirements.

The next Ad Hoc Committee meeting is scheduled for September 23rd at 4:00pm. Focus of upcoming meeting:
 Review and discussion of example mobile vendor ordinances from other cities.  Begin detailed discussion of allowable locations for mobile vendors within the City. • CDBG NOFA
o City staff has hosted two community meetings to provide an overview of the Community Development Block Grant (CDBG) program and to gather input on potential project ideas for future funding applications. These meetings have served to:
 Educate the public on CDBG program goals and eligibility.  Invite community-driven project suggestions to align with local needs.

Staff plans to hold one additional community meeting before returning to the City Council in September to present proposed project ideas and seek Council approval to prepare and submit applications.
o The official Notice of Funding Availability (NOFA) is not expected until November, but early outreach ensures the City is well-prepared to respond once the NOFA is released. • Community Outreach
o The Department continues its regular presence at the local Farmers Market through an informational booth aimed at enhancing community outreach and engagement. Staff shared information about several City grant-funded projects and programs currently underway. • Railcar Removal Update
o All railcars owned by the City of Willits and GRTA have been demolished and hauled away. o Three locomotives owned by Diesel Motive have also been demolished, and transport of related materials is expected to be completed by August 29, 2025. o One remaining railcar, owned by John Clark, is scheduled for removal on August 27, 2025. If that removal does not occur, the car may be scrapped, which could extend the overall project timeline by 2–3 days.

Staffing Items
• No items to report.

Budget Status
• No items to report.

Focus for Next Month
• Clean California Grant
o Coordinate playground design including drainage improvements, equipment location and new rubberized pathways.
o Coordinate community cleanup day on September 20th.
• Zoning Code Updates
3 o Creation of Mixed-Use Zoning Districts and Zoning Map Update is scheduled for the August 27th and September 10th Council meetings.
• Mobile Vendor Ordinance
o Prepare materials to support Ad Hoc Committee meeting on September 23rd. • City Housing Rehabilitation Program
o Support next round of applications for funding through the City’s Housing Rehabilitation Program to support improvements to owner-occupied homes within the City of Willits. • Caltrans Highway 20 Improvements
o Complete preliminary scope of work for potential improvements to State Highway 20 through Willits as part of the 2028 SHOPP project.
10c
Monthly Achievements & Activities
• Completed additional 154 Journal Entries to reconcile all activity in the Springbrook software system from the ACS system and for year-end items in preparation of the FY 2023-2024 Audit. • Scheduled Interim Audit for Fiscal Year 2023-24 to begin August 11,2025 with Fieldwork beginning August 25, 2025
• Go Live with Utility Billing June/ early July.
• Completed schedules and scrubbing numbers for remaining entries that align the programs correctly for the FY 2023-24 audit.
• Bank reconciliation for FY 2024-25 to align all activities in Springbrook.

Project Updates
• Springbrook Implementation:
o Project Management Module is still in review. (Task system still in operation) Staffing Items
• Actively working on the realignment of the Finance Department.

Budget Status
• Worked on Budget items including movement of Street Fund staff to general fund and reallocation of staff at direction of interim City Manager. • Worked with a consultant regarding staff allocation and revenue reconciliation.

Focus for Next Month
• FY 23-24 Audit.
• Budget for FY 2025-26
• Springbrook reflection on Utility Billing implementation and process orientation. • Springbrook reflection on payroll and process review.

Finance July 2025 | Report
10d

POLICE DEPARTMENT REPORT
July 2025 | Report
Monthly Achievements & Activities
July 2024 July 2025
• 911 Calls Received 78 68
• Calls for service (CFS) 433 544
• Cases 41 47
• Arrests 13 27
• Citations 6 4
• Traffic Stops 30 64
Project Updates
• As staffing allows - continued traffic safety education and enforcement, emphasizing school zones, pedestrians, speeding, and passing to the right violations, (especially on Main St.) • Continued deployment of the speed awareness radar trailer. • Providing extra patrols in city parks, the airport and water facilities as time allows. • Executed traffic and parking plans for the annual Willits Frontier Days and Fourth of July parade/celebrations. Review and evaluation of the plans will be completed prior to next year’s celebrations.

Staffing Items
• Police Officer Donovan Shively continues to progress through the Field Training Program. • Two Police Officer Recruits began the Santa Rosa Junior College Basic Police Academy. • The Department continues to focus on an ongoing recruitment effort to fill vacancies for Police Officers, Dispatchers, and Community Service Officers.
1 10e
Monthly Achievements & Activities
• Material bins at the Corp. Yard were re-stocked as needed. • The City Pool is up and running, as summer season is in full swing staff has made some operational changes and are currently overseeing the chemical treatment of the water. Staff hopes the changes in treatment chemicals and streamlining of the process will lead to cost savings and a reduction in staff hours to service the pool and assure water quality. • Roadside mowing and weed abatement was conducted in the City owned alleys and right of ways for the last time this year. The grass has slowed in growth and begun to brown for the season, allowing the maintenance department to transition into other projects and begin to prepare the drainage ditches and other properties for the rainy season.

Project Updates
• Several traffic control and street name signs were replaced at various locations as needed.

Others were cleared for sight distance that had become obscured by overgrown vegetation. A damaged delineator and sign were replaced on Blosser lane, and the Street name sign and speed limit signs at the bottom of Sherwood Rd. were also replaced due to fading from UV damage. • The upper weir at the water shed was cleared of accumulated rock and sand from the winter storm season, this is done annually.
• The roadside from the gate at Centennial reservoir around to the upper weir was also cut back for clearance and fuel reduction.
• Several water leaks and sewer issues were repaired by the Maintenance Department. (SEE

UTILITY REPORT FOR MOR DETAILS)
• Minor pothole patching was conducted as needed; the school routes and high traffic areas will be addressed later this month in advance of the school year. • Main St. trees were lightly pruned for clearance along the sidewalk, weeds and bushes along North Main St. were cut back as needed.

Staffing Items
●No Report
Budget Status
• No Report, spending has been reduced, and several projects are on hold.

Services & Facilities July 2025 | Report
2 Focus for Next Month
• Repair fascia, trim and rafters on the Recreation Grove stage in preparation for the murals that will be installed on the structure.
• Pothole patching and minor road repairs at various locations around the school routes. • Finish exterior siding and framing repairs on the modular trailer at the Corp Yard.- nearly complete.
• Drainage ditch evaluation and clearing in preparation for the storm season. • Storm drain inspection and clearing of debris as needed. 1 10f
Monthly Achievements & Activities
• Completed 4 sewer lateral inspections for home sales. • Monthly cycling of back-up power generators at all water distribution pump stations. • Dewatered and put air into Northbrook water distribution pump station. • Switch out check valve at Northbrook pump station.
• Switched out CL2 process analyzer for the effluent Clearwell at SWTP. • Operators worked with Willits Power to repair the Berryhill pump station’s backup generator. • Repaired ladder on the Laurel St water distribution storage tank. • Installed new shelf for the potassium permanganate pump at the SWTP. • Repaired leaking air system in the compressor room at SWTP. • Replaced effluent PH probe at SWTP.
• Cleaned and flushed soda ash feed system and replaced two check valves. • Sewer lateral mainline clean out installation completed on Maple St at Laurel St. • Repaired numerous leaks throughout the water distribution system with Public Works. • Replaced air diffuser in the south aeration basin at WWTP. • Replaced four-inch sump pump for the solids building at WWTP. • Repaired sewer lateral at the Patriot gas station due to hole in pipe. • Began transferring water from Centennial reservoir to fill Morris Reservoir. • Met with County OES department at the SWTP for a possible fire reduction grant through Mendocino County.
• Operators assisted utility meter reader with meter reading and Hi/Low list.

Project Updates
• Ongoing: Fats, Oils and Grease (F.O.G.) program throughout the sewer collection system. • Ongoing: Sewer lateral inspection program.
• Ongoing: Water meter replacement program.
• Ongoing: Grounds maintenance at Water/Wastewater facilities. • Completed cleaning of all water distribution tanks on July 10,11 and 12th with Potable Divers, Inc.
• Ordered replacement filter media at SWTP for Trident Filters from Westec. Six weeks lead time for material to arrive.
• Annual water main flushing program update: Approximately two flushing days left on the west side of town to complete the 2025 flushing program.

Utilities July 2025 | Report
2 • Ordered new 2025 backhoe for the Services and Facilities department to replace the 2002 Caterpillar model and surplus it to SWTP for watershed and road maintenance. (ETA October 2025)
• Received new M6 Kubota tractor and mower for the replacement of Heston at the WWTP for use of mowing grounds at the facility and use for application of annual bio-solids into the 18- acre sludge field. Received mower attachment on August 21st. • Reservoir Capacity: Morris 439-acre feet and Centennial 595-acre feet equate to 80-percent of full capacity (August 19th).
• July 2025 Water Usage: SWTP: 26,717,675 MG. July 2024: 30,017,082 MG.

GWTP: 1,600,000 MG. July 2024: 1,540,000 MG.

Totals: 28,317,675 MG. July 2024: 31,557,082 MG.
• Non-Potable Water Usage [Truck Fill Station]: 221,176 K/Gals. July 2024: 312,922 K/Gals. • July 2025 Wastewater Treatment Plant Flows: 18,167,397 MG.

Staffing Items
• Wastewater
Budget Status
• In Progress.

Focus for Next Month
• Two Brothers Cathodic Protection to install sacrificial anodes in all three Trident Filters at the SWTP for an extra layer of corrosion control.
• Schedule C.C. Overra Construction to do a reinforced permanent fix on the Upflow Solids Contact Clarifier at the SWTP.
• Scheduled Westec to replace Filter #2’s aluminum screens with the purchased stainless-steel screens. This is the last filter of three that need to be replaced. • Complete the annual water mainline and valve exercising program for 2025. • Prep for annual bio-solids application in the sludge field.

Willits City CouncilAugust 27, 2025

Willits City Council
August 27, 2025