Fortuna City Council approves consent calendar, extends promissory note for 320 Main Street

The Fortuna City Council voted unanimously to approve a seven-item consent calendar that included a first amendment to a promissory note secured by deed of trust for Deborah Chisholm at 320 Main Street, authorization for the city manager to execute an amendment to an existing franchise agreement, and a professional services contract with CSG Consulting.

During a brief discussion before the vote, a council member asked about the borrowers April balloon-payment deadline and whether there would be consequences if the borrower did not sell property or remit payment by then. A city staff member replied, "If she doesn't pay by April, then, I mean, we would have to pursue the foreclosure process and start going through that whole process if she defaults on the loan." The staff member said the borrower has been rehabilitating and selling other properties but indicated the city would pursue foreclosure on default.

Council members also questioned the funding source for the CSG Consulting contract. The city manager confirmed the funds would come from the citys solid-waste fees collected at the transfer station, saying, "That is from the solid waste funds, and those funds are received as a result of folks self hauling to the transfer station, and those fees can only be used for solid waste activities." He said using those funds for the CSG contract to complete the Recology franchise agreement would not impact the general fund.

A council member moved to approve the consent calendar; another seconded the motion. The mayor called the vote: "Aye." "Opposed? None." The motion passed without opposition.

The consent calendar items approved cover routine administrative and contractual actions; the promissory-note amendment drew the most council scrutiny because members pressed staff on the timetable and the citys remedies if the borrower defaults. The city will proceed with the contracts and amendments approved on the consent calendar.