Dunsmuir City Council
May 21, 2026

CITY OF DUNSMUIR

CITY COUNCIL
Thursday, May 21st, 2026 - 6:00 p.m.

MEETING AGENDA

REGULAR SESSION

CLOSED SESSION TO FOLLOW
Join Zoom Meeting: https://us02web.zoom.us/j/84424135442 Council Chambers
5902 Dunsmuir Ave
Notice to Public
The City of Dunsmuir is committed to providing meeting facilities that are accessible to persons with disabilities and/or have language barriers. To request meeting materials in alternative formats, or to request a sign language interpreter, real-time captioning, or other accommodation, please contact the City Clerk's Office, at least 72 hours in advance of the meeting at (530) 235-4822.

For individuals with hearing or speaking limitations, dial 711 or (800) 735-2922 (English). For Spanish, Tagalog or other language, please dial (800) 855-3000 and provide the communication assistant with the following City telephone number:
(530) 235-4822.

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:

Pursuant to Government Code 84308, City Council Members are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the City Council Member received more than $250 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City's decision on the agenda item in the 12 months prior to the date the item is on the agenda.

Members of the City Council who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $250 to a City Council Member in the 12 months prior to the date the item is on the agenda are required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration.

Members of the public can observe and participate in the meeting remotely via Zoom using the following Webinar ID:
844 2413 5442, or by calling +1 669-900-6833. Go to Reactions tab to “Raise your Hand” during the public comment period.

A. CALL TO ORDER
B. ROLL CALL
C. SPECIAL PRESENTATIONS AND ANNOUNCEMENTS – none
D. PUBLIC COMMENTS
Persons wishing to address the City Council on subjects not on the agenda but within the jurisdiction of the council may do so at this time. The council cannot discuss or take action on matters, not on the agenda for this meeting, but councilmembers may briefly respond to statements made or questions raised by the public, ask for clarification from staff, refer the matter to staff, request staff to report back to the council at a subsequent meeting, or place the matter on a future agenda. To speak on an agenda item, please use the “raise your hand” feature or press *9 on your phone. Speakers are limited to three minutes per item, as determined by the Mayor.

E. COUNCIL AND STAFF COMMENTS
F. COMMITTEE REPORTS
1 G. APPROVAL OF MINUTES of 5/7/26, 5/9/26, 5/11/26, 5/14/26 H. CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a member of the City Council or the public requests that separate action be taken on a specific item.

Recommended Action: To approve the consent calendar.

1. Approval of Check Report 5/2/26 – 5/15/26

2. Second Reading of Ordinance 583 OF THE CITY COUNCIL OF THE CITY OF DUNSMUIR AMENDING DUNSMUIR MUNICIPAL CODE CHAPTER 17.08 (DEFINITIONS) AND 17.108 (USES PERMITTED) TO

ALLOW COMMERCIAL CANNABIS LOUNGES WITHIN CANNABIS DISPENSARIES SUBJECT TO FIRST

OBTAINING A CONDITIONAL USE PERMIT FROM THE CITY

3. Second Reading of Ordinance 584 OF THE CITY OF DUNSMUIR REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER 5.05 OF TITLE 5 OF THE DUNSMUIR MUNICIPAL CODE RELATING TO REGULATION

OF COMMERCIAL CANNABIS ACTIVITIES

4. Second Reading of Ordinance 585 OF THE CITY OF DUNSMUIR AMENDING TITLE 17 OF THE DUNSMUIR MUNICIPAL CODE SECTIONS 17.16, 17.20, 17.24, 17.28, 17.32, 17.36, 17.40, AND 17.64 RELATED TO

ALLOWING SHORT-TERM RENTALS AS PERMITTED USES IN ALL DISTRICTS THAT ALLOW RESIDENTIAL USES; AND AMENDING SECTION 17.100.060 TO REDUCE PARKING REQUIREMENTS FOR SHORT-TERM RENTALS IN THE TOWN CENTER (T-C) AND MIXED USE 3 (MU-3) ZONING DISTRICTS

5. Delinquent Utility User Accounts and Delinquent Abatement Costs To Place On Property Tax Roll And Be Collected By The County. Adopt RESOLUTION 2026-11 A RESOLUTION OF THE COUNCIL OF THE CITY

OF DUNSMUIR REGARDING COLLECTION OF DELINQUENT CHARGES
I. PUBLIC HEARINGS – None
J. OLD BUSINESS - None
K. NEW BUSINESS:

1. Discuss establishing an Entertainment Zone allowing patrons of participating ABC-licensed establishments to carry and consume alcoholic beverages within a defined boundary Recommended Action: Hear, discuss, and provide action on possible entertainment zone in Dunsmuir L. FUTURE AGENDA ITEMS

1. Historic District Property Business Improvement District

2. RFQ for Qualifications for Housing Developers

3. Childcare Item

4. California Uniform Public Construction Cost
M. ADJOURN TO CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Gov’t Code section 54956.9(d)(1)
2 4191 Patricia Way LLC v. City of Dunsmuir; Mark Allen; and DOES 1-20. Siskiyou County Superior Court case number 26CV05279

2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Gov’t Code section 54956.9(d)(1)

4191 Patricia Way LLC v. City of Dunsmuir. Siskiyou County Superior Court case number 26CV06378

3. CONFERENCE WITH LABOR NEGOTIATOR (Government Code section 54957.6) Position: City Manager
Designated Representative: WBCP, Inc. (Lauren Gerson-Greene) N. REPORT OUT FROM CLOSED SESSION
O. ADJOURNMENT
ADJOURN TO THURSDAY JUNE 4th, 2026, 6:00 P.M., COUNCIL CHAMBERS 5902 DUNSMUIR AVE, DUNSMUIR, CA
Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the City of Dunsmuir to all or a majority of the Dunsmuir City Council less than 72 hours prior to that meeting are available for public inspection at City Hall, 5915 Dunsmuir Ave, Dunsmuir, California during normal business hours.

PUBLIC NOTIFICATION
I, Wendy Perkins, City Clerk, do hereby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Dunsmuir City Council, at the time and in the manner prescribed by law and that this agenda was posted at City Hall 3 1
Dunsmuir City Council Meeting Minutes of May 7th, , 2026 A. CALL TO ORDER 6:03 PM
B. ROLL CALL
On roll call were Councilmembers: Clarno, Sebring, Bryan, Lucchesi

Absent: Hubbard
Staff present: City Clerk Perkins, Interim City Manager/Finance Director Michaelsen, City Attorney Lim, HR Consultant Dellandre, Planner Price
C. SPECIAL PRESENTATIONS AND ANNOUNCEMENTS –
Celebrate City Winning Best Tasting Water at the Cal Rural Water Association Annual Expo D. PUBLIC COMMENTS – open at : 6:05 p.m.

Sherry Lawson – Running for Auditor and Controller and wanting to let everyone know why she’s running and why she feels she’s qualified to do the job.

Brian Wilson – Makes some comments regarding the state of Belnap fountain.

E. COUNCIL AND STAFF COMMENTS
Sheriff’s Dept - None
ICM Michaelsen – Closed on Mott Rd. Parcel, Green Waste day, good success, Great job to Lucchesi at the awards gala dinner, Water UV Chlorination Project starting in June, Environmental Justice workshop happened last week, there’s a survey to provide input on city’s website. Sewer Improvement project is wrapping up, Springs Improvement project will be starting soon.

Clarno says 2nd Saturdays is coming up this Saturday
Sebring – Thanks everyone for Green Waste Days
Lucchesi – Thanks volunteers for Dog Wood Days
F. COMMITEEE REPORTS -
G. APPROVAL OF MINUTES – Motion to approve Amended Minutesfrom April 2nd, 2026 and April 16th Moved by: Councilmember Clarno
Seconded by: Councilmember Sebring Motion Carried ( 4 to 0 ) 4 2
H. CONSENT CALENDAR –

1. Approval of Check Report 4/11-5/1

2. Claim Form for City to Receive Funds from Local Transportation Fund LTC

3. Adopt Environmental Addendum for the WWTP Improvement Project via Resolution 2026- xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUNSMUIR ADOPTING AN

ADDENDUM TO THE PREVIOUSLY ADOPTED MITIGATED NEGATIVE DECLARATION FOR THE

DUNSMUIR WASTEWATER TREATMENT PLANT (WWTP) IMPROVEMENT PROJECT

4. Move Money from Banner Bank to Mechanics Bank
Item H. 4. is moved to K. 2.

Motion to approve the consent agenda items 1-3
Moved by: Councilmember Clarno
Seconded by: Councilmember Bryan Motion Carried ( 4 to 0 ) I. PUBLIC HEARINGS –

1. First Reading of Ordinance 583 OF THE CITY COUNCIL OF THE CITY OF DUNSMUIR AMENDING DUNSMUIR MUNICIPAL CODE CHAPTER 17.08 (DEFINITIONS) AND 17.108 (USES PERMITTED) TO

ALLOW COMMERCIAL CANNABIS LOUNGES WITHIN CANNABIS DISPENSARIES SUBJECT TO FIRST

OBTAINING A CONDITIONAL USE PERMIT FROM THE CITY
Public Hearing open at: 6:33 p.m. No Public Comment
Hold Public Hearing
Moved by: Clarno
Seconded by: Sebring
Hold public hearing and consider any public comments; Concur with staff and the Planning Commission that this project is exempt from environmental review in accordance with Section 15061(b)(3) of the CEQA Guidelines. Introduction and waive first reading of Ordinance 583 to amend the Zoning Code. Set date of second reading and adoption of ordinance for May 21, 2026.

Motion Carried ( 4 to 0 )

2. First Reading of Ordinance 584 OF THE CITY OF DUNSMUIR REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER 5.05 OF TITLE 5 OF THE DUNSMUIR MUNICIPAL CODE RELATING TO

REGULATION OF COMMERCIAL CANNABIS ACTIVITIES
Hold Public Hearing open at 6:45
Public Comment: Alan Magana speaks in support of the Ordnance and asks clarifying questions about the need to obtain a CUP to have consumption lounges.

Andrea Herr Speaks in support of Cannabis consumption as it has helped her husband in a battle with cancer
5 3
Moved by: Councilmember Lucchesi
Seconded by: Councilmember Sebring
Hold public hearing and consider any public comments; Introduction and waive first reading of Ordinance 584 to repeal and replace Municipal Code Chapter 5.05. Set date of second reading and adoption of ordinance for May 21, 2026
Motion Carried ( 4 to 0 )
Lucchesi would like to direct staff to prepare a future item policies and procedure to a potential transferability of a Cannabis Business License
Time is 7:05 p.m.

Recess is called to the regular session and the council goes into special meeting agenda.

There is an option to start the 7 p.m. Special Meeting Agenda or continue - Council Chooses to then go into the 7 p.m. Special Meeting concerning the anticipated litigation.

3. First Reading of Ordinance 585 OF THE CITY OF DUNSMUIR AMENDING TITLE 17 OF THE DUNSMUIR MUNICIPAL CODE SECTIONS 17.16, 17.20, 17.24, 17.28, 17.32, 17.36, 17.40, AND

17.64 RELATED TO ALLOWING SHORT-TERM RENTALS AS PERMITTED USES IN ALL DISTRICTS THAT ALLOW RESIDENTIAL USES; AND AMENDING SECTION 17.100.060 TO REDUCE PARKING REQUIREMENTS FOR SHORT-TERM RENTALS IN THE TOWN CENTER (T-C) AND MIXED USE 3 (MU3) ZONING DISTRICTS Public Hearing open for public comment at 7:42: None
Moved by: Councilmember Bryan
Seconded by: Councilmember Sebring Motion Carried ( 4 to 0 ) Roll Call Vote:

AYES: Bryan, Sebring, Clarno, Lucchesi
NOES: NONE
ABSENT: Hubbard
ABSTAIN: None
Motion by Lucchesi to amend the motion 2nd by Bryan to also exempt the Ordinance from CEQA pursuant to a general exemption. All in favor.

Motion to introduce the 2nd reading of Ordinance 585 at the May 21st, 2026 Regular Meeting of City Council
Moved by: Councilmember Lucchesi
Seconded by: Councilmember Sebring Motion Carried ( 4 to 0 ) J. OLD BUSINESS - None
K. NEW BUSINESS –
6 4

1. Review of Applications for Dunsmuir Recreation and Parks District One (1) Board Vacancy for Term Ending June of 2028
Recommended Action: Appoint 1 person, Michael Kay, to fill Vacancy on Recreation and Park Board with Term ending June of 2028
Moved by: Councilmember Bryan
Seconded by: Councilmember Sebring Motion Carried ( 4 to 0 )

2. Move Money from Banner Bank to Mechanics Bank
Moved by: Councilmember Clarno
Seconded by: Councilmember Sebring Motion Carried ( 4 to 0 ) Roll Call Vote:

AYES: Bryan, Sebring, Clarno, Lucchesi
NOES: NONE
ABSENT: Hubbard
ABSTAIN: None
L. FUTURE AGENDA ITEMS

1. Historic District Property Business Improvement District

2. RFQ for Qualifications for Housing Developers

3. Childcare Item

4. California Uniform Public Construction Cost

5. Investigate an Entertainment Zone for Downtown Area
M. ADJOURN TO CLOSED SESSION –
Roll Call: Bryan, Clarno, Sebring, Lucchesi

Absent: Hubbard
Public comment was opened: None. Items 1 and 2 were addressed at the 7:00 hour

1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Gov’t Code section 54956.9(d)(1):
4191 Patricia Way LLC v. City of Dunsmuir; Mark Allen; and DOES 1-20.

Siskiyou County Superior Court case number 26CV05279

2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Gov’t Code section 54956.9(d)(1):
4191 Patricia Way LLC v. City of Dunsmuir.

Siskiyou County Superior Court case number 26CV06378

Items 3. 4 were addressed at the 8 p.m. hour

ADJOURN TO 2ND CLOSED SESSION ITEMS 3 AND 4 AT 7:56 P.M. 7 5
No public comments

3. CONFERENCE WITH LABOR NEGOTIATOR (Government Code section 54957.6) Position: City Manager
Designated Representative: WBCP, Inc. (Lauren Gerson-Greene)

4. CONFERENCE WITH LABOR NEGOTIATOR (Government Code section 54957.6) City Representative: Blake Michaelsen, Interim City Manager Employee Organization: Operating Engineers Local No 3
N. REPORT OUT FROM CLOSED SESSION
Items 1.2.3.4, Direction Given to Staff
O. ADJOURNMENT 8:20 p.m.

ADJOURN TO THURSDAY MAY 21th, 2026, 6:00 P.M., COUNCIL CHAMBERS 5902 DUNSMUIR AVE,

DUNSMUIR, CA
Mayor Lucchesi City Clerk Perkins
8 1
Dunsmuir City Council Soecial Meeting Minutes of May 9th 2026 A. CALL TO ORDER 8:30 AM
B. ROLL CALL
On roll call were Councilmembers: Clarno, Hubbard, Bryan, Lucchesi

Absent: Sebring
Staff present: none
Consultants present: Lauren Gerson-Greene
C. PUBLIC COMMENTS – open at: 8:31 a.m. None.

D. ADJOURN TO CLOSED SESSION –
CONFERENCE WITH LABOR NEGOTIATOR (Government Code section 54957.6) Position: City Manager
Designated Representative: WBCP, Inc. (Lauren Gerson-Greene) E. REPORT OUT FROM CLOSED SESSION
No reportable action
F. ADJOURNMENT 4:00 p.m.

Mayor Lucchesi City Clerk Perkins
9 1
Dunsmuir City Council Special Meeting Minutes of May 11th 2026 A. CALL TO ORDER 7:00 PM
B. ROLL CALL
On roll call were Councilmembers: Sebring, Clarno, Hubbard, Bryan, Lucchesi

Absent: none
Staff present: none
Consultants present: Lauren Gerson-Greene
C. PUBLIC COMMENTS – open at: 7:01 p.m.. None.

D. ADJOURN TO CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATOR (Government Code section 54957.6) Position: City Manager
Designated Representative: WBCP, Inc. (Lauren Gerson-Greene) E. REPORT OUT FROM CLOSED SESSION
No direction given.

F. ADJOURNMENT 8:50 p.m.

Mayor Lucchesi City Clerk Perkins
10 1
Dunsmuir City Council Special Meeting Minutes of May 14th 2026 A. CALL TO ORDER 6:39 PM
B. ROLL CALL
On roll call were Councilmembers: Clarno, Hubbard, Bryan, Lucchesi

Absent: Sebring
Staff present: none
Consultants present: Lauren Gerson-Greene
C. PUBLIC COMMENTS – open at: 6:40 p.m. None.

D. ADJOURN TO CLOSED SESSION –
CONFERENCE WITH LABOR NEGOTIATOR (Government Code section 54957.6) Position: City Manager
Designated Representative: WBCP, Inc. (Lauren Gerson-Greene) E. REPORT OUT FROM CLOSED SESSION
Direction given to labor negotiator.

F. ADJOURNMENT 7:27 p.m.

Mayor Lucchesi City Clerk Perkins
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14 1 of 1

CITY OF DUNSMUIR

STAFF REPORT TO CITY COUNCIL
May 21, 2026

CANNABIS LOUNGE REGULATIONS
SUMMARY: This is the second reading of amending the Dunsmuir Municipal Code (DMC) and for Cannabis Lounge regulations which were approved for first reading on May 7, 2026 as follows:

1. Ordinance 583-amendments to DMC Chapter 17.08 and Chapter 17.108 to permit cannabis consumption lounges within the City (Zoning) to permit cannabis consumption lounges within the City limited to MU-2, (Neighborhood Mixed Use), MU-3 (Central Mixed Use), T-C (Town Center), S-C (Service Commercial), L-M (Light Manufacturing), M (Manufacturing) as an accessory use to a cannabis dispensary and subject to approval of a conditional use permit by the planning commission.

2. Ordinance 584-repealing and replacing DMC Chapter 5.05 to regulate commercial cannabis activities within the City (Business Licenses and Regulations) that include specific performance standards for the conduct of cannabis lounges and some other changes to the regulations to allows the City Manager to approve assignments/changes in operators and renewals of commercial cannabis business permits and other minor clarifying amendments are proposed to improve reading of these regulations.

The amended regulations would retain the current limitation of a maximum of three cannabis dispensaries in town; also limiting the maximum number of cannabis lounges to three.

During the May 6, 2026, meeting, the City Council conducted public hearings on each of the amended ordinances. Two people from the public spoke in favor of the proposed amendments including Andrea Hurt and Alan Magana.

ATTACHMENTS:

1. Ordinance 583; an Ordinance of the City Council of the City of Dunsmuir Amending Dunsmuir Municipal Code Chapter 17.08 (Definitions) and 17.108 (Uses Permitted) to Allow Commercial Cannabis Lounges within Cannabis Dispensaries Subject to First Obtaining a Conditional Use Permit from the City.

2. Ordinance 584; an Ordinance of the City Council of the City of Dunsmuir Repealing and Replacing in its Entirety Chapter 5.05 of Title 5 of the Dunsmuir Municipal Code Relating to Regulation of Commercial Cannabis Activities.

CONCLUSIONS/RECOMMENDATIONS: Consistent with the Planning Commission’s recommendation, staff is recommending adoption of both ordinances in two separate motions as follows:

A. Ordinance No. 583 (Zoning Code Amendments)
In one motion:

1. Hold second reading, read by title only, waive further reading and adopt ordinance.

B. Ordinance No. 584 (Business Regulations)
In one motion:

1. Hold second reading, read by title only, waive further reading and adopt ordinance.

QUESTIONS/COMMENTS: Please contact Contract Planner, Gary Price, at (530) 272-6434 or [email protected] for any questions.
15 Attachment 1-Ordinance 583; an Ordinance of the City Council of the City of Dunsmuir Amending the Zoning Code-Dunsmuir Municipal Code Chapter 17.08 (Definitions) and 17.108 (Uses Permitted) to Allow Commercial Cannabis Lounges within Cannabis Dispensaries Subject to First Obtaining a Conditional Use Permit from the City.

ORDINANCE NO. 583

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUNSMUIR AMENDING DUNSMUIR MUNICIPAL CODE CHAPTER 17.08 (DEFINITIONS) AND 17.108 (USES

PERMITTED) TO ALLOW COMMERCIAL CANNABIS LOUNGES WITHIN CANNABIS

DISPENSARIES SUBJECT TO FIRST OBTAINING A CONDITIONAL USE PERMIT FROM THE CITY
WHEREAS, the City wishes to permit cannabis consumption lounges (on-site consumption of cannabis) within cannabis dispensaries subject to obtaining a conditional use permit within the City; and
WHEREAS, this proposed ordinance would enable the permitting of cannabis consumption lounges for the on-site consumption of cannabis within restricted areas of cannabis dispensaries, subject to approval of a conditional use permit by the Planning Commission; and WHEREAS, concurrently with this proposed ordinance amending the City’s Zoning Code, the City is also considering An Ordinance of the City Council of the City of Dunsmuir Repealing and Replacing in its Entirety Chapter 5.05 of Title 5 of the Dunsmuir Municipal Code Relating to Regulation of Commercial Cannabis Activities (Ordinance No. 584) to regulate on-site consumption of cannabis and commercial cannabis lounges; and
WHEREAS, the proposed amendments to the City’s Zoning Code are consistent with the City’s General Plan; and
WHEREAS, after a duly noticed public hearing on April 8, 2026, the Planning Commission adopted Resolution PC 2026-02 recommending the City Council adopt Ordinance No. 583; and WHEREAS, planning staff presented an oral and written staff report on this Ordinance of the City Council of the City of Dunsmuir Amending Dunsmuir Municipal Code Chapter 17.08 (Definitions) and 17.108 (Uses Permitted) to Allow Commercial Cannabis Lounges within Cannabis Dispensaries Subject to First Obtaining a Conditional Use Permit from the City at the Planning Commission’s regularly scheduled meeting on April 8, 2026, and the Planning Commission recommended by a 5 to 2 vote that the City Council adopt this ordinance; and NOW, THEREFORE, the City Council of the City of Dunsmuir does ordain as follows:

SECTION 1: Section 17.08.580.110 of the Dunsmuir Municipal Code is hereby amended to read as follows:

17.08.580 - Commercial cannabis business.
"Commercial cannabis business" includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis, medical cannabis 16 or a cannabis or medical cannabis product, on-site retail sales (including storefront dispensaries and on-site consumption, such as a commercial cannabis lounges, within storefront dispensaries) except as related Business and Professions Code Section 19319, and as it may be amended or Health and Safety Code Sections 11362.1 through 11362.45 and as they may be amended.

SECTION 2: Section 17.08.2010 of the Dunsmuir Municipal Code is hereby amended to read as follows:

17.08.2010 - Restricted retail sales.

Stores and shops that are dispersed to minimize their potentially blighting impact on surrounding land uses, including firearm sales, alcoholic beverage sales, retail cannabis sales (including on-site commercial consumption of cannabis), secondhand sales, thrift stores, and tobacco and vape shops.

SECTION 3: Section 17.108.050 of the Dunsmuir Municipal Code is hereby amended to read as follows:

17.108.050 Uses permitted.

The following land use table shall be used to determine whether a commercial cannabis use is permitted (P), not permitted (N), or conditionally permitted (C) in each zoning district. If a commercial cannabis use is not listed, it is not permitted in any zoning district. If a zoning district is not included in the land use table, commercial cannabis uses are prohibited in that zoning district.

USE MU-1 MU-2 MU-3 T-C S-C L-M M
Cultivation
Specialty
Cottage
Outdoor
Up to 25
mature plants

C C C N C C C
Specialty
Cottage
Indoor
Up to 500 sq.
ft. of canopy

C C C C C C C
Specialty
Outdoor
Up to 50
mature plants
or up to 5,000
sq. ft. of
canopy

N C C N C C C
Specialty
Indoor
501 to 5,000
sq. ft. of
canopy

C C C C C C C
Small Outdoor
5,001 to

N C C N C C C
17 10,000 sq. ft.
of canopy
Small Indoor
5,001 to
10,000 sq. ft.
of canopy

N C C C C C C
Medium
Outdoor
10,001 sq. ft.
to one acre of
canopy

N C C N C C C
Medium
Indoor
10,001 to
22,000 sq. ft.
of canopy

N C C C C C C
Indoor
Nursery

C C C C C C C
Processor N C C C C C C
Retail
Delivery Only N C C C C C C
Lounge N C C C C C C
Storefront N C C C C C C
Distribution
Distributor C P P P P P P
Transport
Only

C P P P P P P
Manufacturing
Non-volatile
solvent
manufacturing
or mechanical
extraction

N P P C P P P
Volatile
solvent
manufacturing

N N N N N N C
Infusion of
products

N P P C P P P
Packaging &
labeling

N P P C P P P
Other
Testing C P P P P P P
Microbusiness As
provided
for herein
above.

SECTION 4: FINDINGS: Because it can be seen with certainty that there is no possibility that this ordinance would have a significant impact on the environment, the City Council has determined that 18 this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to pursuant to CEQA Guidelines Section Section15061(b)(3), the “common sense exemption.” SECTION 5: CONSTITUTIONALITY: If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, or phrase of this ordinance irrespective of the fact that any one or more of the sections, subsections, sentences, clauses or phrases be declared unconstitutional.

SECTION 6: EFFECTIVE DATE: This ordinance shall become effective thirty (30) days after its passage, and within fifteen (15) days after its adoption a summary of it shall be published in the Siskiyou News, printed and published in Siskiyou County.

INTRODUCED this 7th day of May, 2026 at a regular meeting of the City of Dunsmuir City Council by the following vote:

AYES: Lucchesi, Sebring, Bryan, Clarno
NOES:

ABSENT: Hubbard
ABSTAIN:

PASSED AND ADOPTED this 21st day of May 2026, at a regular meeting of the City of Dunsmuir City Council by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________________ Juliana Lucchesi, Mayor ATTEST: _________________________________ Wendy Perkins, City Clerk 19 Attachment 2-Ordinance 584; an Ordinance of the City Council of the City of Dunsmuir Repealing and Replacing in its Entirety Chapter 5.05 of Title 5 of the Dunsmuir Municipal Code Relating to Regulation of Commercial Cannabis Activities
ORDINANCE NO. 584

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUNSMUIR REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER 5.05 OF TITLE 5 OF THE DUNSMUIR MUNICIPAL

CODE RELATING TO REGULATION OF COMMERCIAL CANNABIS ACTIVITIES WHEREAS, the City wishes to regulate cannabis consumption lounges (on-site consumption of cannabis) within cannabis dispensaries within the City; and WHEREAS, the proposed ordinance would enable the permitting of cannabis consumption lounges within cannabis dispensaries as defined by Chapter 5.05 of the Dunsmuir Municipal Code and as further permitted under Chapter 17.108 (Commercial Cannabis) subject to obtaining a conditional use permit in limited areas of the City; and WHEREAS, Business and Professions Code Section 26200 permits cities to adopt and enforce local ordinances that regulate commercial cannabis activity; and WHEREAS, the City Council intends that nothing in this ordinance shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law; and WHEREAS, after studying various alternatives for the regulation of cannabis retailers, considering input from stakeholders, and reviewing the legal status of cannabis under applicable law, the City Council finds that the regulation of cannabis retailers and cultivation facilities is necessary to protect the public health, safety, and welfare by mitigating the adverse secondary effects from these activities; and
WHEREAS, the adoption of an ordinance, or amendments thereof, rule, or regulation by the City Council that requires discretionary review and approval of permits, licenses, or other authorization to engage in commercial cannabis activity is exempt from Division 13 of the Public Resources Code pursuant to the provisions of Business and Profession Code 26055(h) and requires no further environmental review.

WHEREAS, concurrently with this proposed ordinance amending the City’s Business Licenses Regulations, the City also is considering Ordinance No. 583 to regulate on-site consumption of cannabis and commercial cannabis lounges.

NOW, THEREFORE, the City Council of the City of Dunsmuir does ordain as follows:

SECTION 1: Chapter 5.05 of Title 5 of the Dunsmuir Municipal Code is hereby repealed and replaced in its entirety with the following:
20 Chapter 5.05 REGULATION OF COMMERCIAL CANNABIS ACTIVITIES

5.05.010 Purpose and intent.

It is the purpose and intent of this section to regulate the cultivation, and sale of cannabis in order to ensure the health, safety and welfare of the residents of the city. The regulations in this article, in compliance with the Compassionate Use Act, the Medical Marijuana Program Act, the Medical Cannabis Regulations and Safety Act, Proposition 64, and the California Health and Safety Code (collectively referred to as "state law") do not interfere with the right to use cannabis or medical cannabis as authorized under state law, nor do they criminalize the possession or cultivation of cannabis or medical cannabis as authorized under state law. All commercial cannabis business shall at all times be in compliance with current state law at a minimum.

5.05.020 Scope of article.

The operating standards established in this article apply to any site, facility, location, use, or business currently operating in the city, or which commences operations after the effective date of this section, that cultivates, dispenses, stores, or sells cannabis for medical or recreational purposes. Any dispensary or cultivation facility shall operate in conformance with the operating standards set forth in this section of the Municipal Code to assure that the operations of the dispensary or cultivation facility are in compliance with California law and to mitigate the adverse secondary effects from its operations.

Persons who cultivate cannabis for their sole personal use in their residences (up to six plants) may do so without submitting any application or permit. It is hereby declared to be unlawful and a public nuisance may also be deemed to exist if such activity is determined to be related to the cultivation of cannabis and produces:

1. Odors which are disturbing to people residing or present on adjacent or nearby property or areas open to the public.

2. Repeated responses to the property from law enforcement or other code enforcement officers (more than three times in a one-year period).

3. Repeated disruption to the free passage of persons or vehicles in the neighborhood (more than three times in a one-year period) as reported to law enforcement officers or the city code enforcement officer.

4. Any other impact which adversely impacts the health, safety or general welfare of people on adjacent or nearby property or areas open to the public.

Nothing in this chapter shall be construed as a limitation on the city's authority to abate any nuisance which may exist from the planting, growing, harvesting, drying, processing or storage of cannabis plants or any part thereof from any location.

5.05.030 Definitions.
"Accessory building" means a detached building subordinate to and located on the same parcel as a residence, the use of which is incidental to that of the residence. "Accessory building" does not include any tent, trailer, recreational vehicle, or other vehicle, or any building designed or used for human habitation.
21 "Applicant" shall mean a person who is required to file an application for a permit or license under this chapter.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. For purposes of this section the terms "cannabis" and "marijuana" shall have the same meaning.
“Cannabis consumption lounge” or “lounge” means a restricted area within a cannabis dispensary where cannabis or cannabis products are consumed. “Cannabis consumption lounge operator” means a storefront cannabis dispensary permittee who is authorized to operate a cannabis consumption lounge in accordance with this chapter. "Cannabis dispensary" means a premise where cannabis, cannabis products, or devices for the use of non-medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to Section 19340 of the Health and Safety Code, cannabis and cannabis products as part of a retail sale. A cannabis dispensary may or may not include a cannabis consumption lounge. "Cannabis manufacturing site" means the premises that produces, prepares, propagates, or compounds manufactured cannabis or cannabis products, directly or indirectly, by any extraction methods and is owned and operated by a licensee for these activities. "Cannabis testing facility" means a public or private laboratory licensed and certified, or approved by the bureau of cannabis regulation or any other regulatory body controlling testing facilities, to conduct research and analyze cannabis, cannabis products, and cannabis concentrate for contaminants and potency.
"Canopy" means the total combined canopy area for all locations on a property where cannabis is being cultivated, including indoor areas, outdoor areas, or a combination of both, as measured by the horizontal extent of the plant or combination of plants at the widest point and measured in a straight line.
"Commercial cannabis business" includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis, medical cannabis or a cannabis or medical cannabis product, except as related Business and Professions Code Section 19319, and as it may be amended or Health and Safety Code Sections 11362.1 through 11362.45 and as they may be amended.
"Cultivation" and/or "cultivate" shall mean the planting, growing, harvesting, drying, processing, or storage of one or more cannabis plants or any part thereof. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between licensed entities.
"Distributor" means a person licensed to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed dispensary.
22 "Employee" shall mean any person (whether paid or unpaid) who provides regular labor or regular services for a cannabis business, including but not limited to the location of a cannabis dispensary business.
"Greenhouse" shall mean an accessory structure to a residence located on the same premises, legally established with all required permits approved, constructed primarily of translucent glass or glass-like material (or other similar material approved by the county building official), completely enclosed with one or more secure locking doors as the only means of ingress and egress, where plants are grown.
"Indoor cultivation facility" shall mean a facility which is licensed by the City of Dunsmuir and the State of California for the growing of cannabis within an enclosed building for the purposes of wholesale of cannabis to cannabis manufacturing facilities or cannabis dispensaries. "Manager" shall mean an employee responsible for management and/or supervision of a cannabis dispensary business.
"Mixed light cultivation facility" means cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold in a permanent facility in compliance with the state building code as determined by the state licensing authority. "Non-climbable fence" means a fence with a smooth exterior surface that is not equipped with steps or other provisions for climbing.
"Nursery" means a commercial cannabis licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
"Primary caregiver" shall have the same meaning as set forth in Health and Safety Code Section 11362.7(f).
"Qualified patient" shall have the same meaning as set forth in the Health and Safety Code Section 11362.7(f).
"School" means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.
“Smoking” means inhaling smoke from heated cannabis flowers or extracts, delivering the psychoactive compound THC into the bloodstream via the lungs, commonly done with pipes, bongs, or hand-rolled joints, to experience its intoxicating effects. "Transporter" means a person who holds a license by the bureau of cannabis regulation to transport cannabis or cannabis products in an amount above a threshold determined by the bureau between licensees that have been issued a license pursuant to this chapter. “Vaping” means to inhale vapor from a device that heats up and vaporizes a liquid or solid.

5.05.040 Location requirements.

A. No cannabis dispensary, cultivation facility, manufacturing facility, testing facility or any other commercial cannabis business facility may be located within 600 linear feet (measured in a direct line from property line to property line) from a school, day care home, recreational center, youth center, or public park as required by Section 11362.768 of the Health and Safety Code.

B. No cannabis dispensary, cultivation facility, manufacturing facility, or testing facility or any other cannabis business facility may be located within 100 linear feet (measured in a direct line from 23 property line to property line) from the library, children's park, football field, community building or parks and recreation area (pool) as permitted by Section 11362.768 of the Health and Safety Code.

5.05.050 Maximum number of dispensaries permitted citywide.

A. The city may permit up to three dispensaries to operate within city limits, regardless of the location's compliance with any other Section specified in this title.

B. The total number of dispensaries in operation shall be determined based on the number of locations which have been issued a cannabis dispensary permit by the city or are eligible to submit for a cannabis dispensary permit.

C. If the number of applications exceeds the number of permits allowed, a lottery system will be used. City staff will create a lottery process in the event as required D. Dispensaries already operating with the city's permission in the city are deemed permitted to dispense cannabis and cannabis products provided they pay all regulatory fees and taxes and all other requirements and standards of the city's regulatory ordinance, zoning ordinance and tax ordinance and as they may be amended.

5.05.060 Commercial cannabis cultivation.

A. Outdoor commercial cannabis cultivation shall not be allowed in the Dunsmuir historic district and buffer zone.

B. Outdoor commercial cultivation of cannabis outside of the historic district and buffer zone with a conditional use permit issued by the planning commission shall be allowed.

C. Cannabis shall not be grown in a residence by anyone other than the resident.

D. Cannabis cultivation shall not contain an exhibition or product sales area or allow for retail distribution of products at that location.

E. Cannabis cultivation and dispensary facilities shall be required to provide an air treatment system that ensures off-site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected outside the building, on adjacent properties or public rights-of-way, or within any other unit located within the same building as the facility, if the use occupies only a portion of a building.

Additional air treatment requirements for cannabis consumption lounges are required under the provisions of Section 5.05.145.

5.05.070 Commercial cannabis business permit required.

A. It shall be unlawful for any person, association, partnership or corporation to engage in, conduct or carry on, in or upon any premises within the city cannabis business without a commercial cannabis business permit. A cannabis business shall register and obtain a commercial cannabis business permit from the city prior to operation. The applicant shall pay a non-refundable fee in an amount established by the city council.

B. A copy of the commercial cannabis business permit shall be displayed at all times in a place visible to the public.

C. A commercial cannabis business permit shall be issued to a specific operator and shall be valid for one year, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above-referenced period. Any assignment of 24 a commercial cannabis business permit to a subsequent operator shall be void unless first approved in writing by the city manager. Assignment shall be subject to submittal of an assignment application in accordance with Section 5.05.110 of this chapter.

D. All owners shall comply with California residency requirements as defined in Business and Professions Code § 26054.1(a)(b).

5.05.080 Commercial cannabis business permit.

A. A commercial cannabis business permit shall not be issued to an individual or a business entity associated with an individual, who has violated California Health and Safety Code Section 11590 and its provisions.

B. The commercial cannabis business permit shall be issued to the specific person or persons listed on the cannabis permit application.

C. A commercial cannabis business permit is not assignable, does not transfer with the land, and does not transfer with the transfer of the property, except as provided in Sections 5.05.070.C and 5.05.110 of this chapter. 5.05.090 Commercial cannabis business permit application submission process.

A. The city manager or his/her designee will prepare cannabis application forms and a related administrative policy. Each applicant interested in operating pursuant to this Section may submit an application together with a non-refundable processing fee in an amount established by the city council.

B. The initial application period shall be thirty (30) calendar days from the date the applications are released. Should the 30th day fall on a day when city hall is closed, the application period shall be extended to the next open day at 4:00 p.m. Following the application period, the city manager or his/her designee shall stop accepting applications and review all applications received.

C. The city manager or his/her designee shall determine whether each application received demonstrates compliance with the minimum requirements to be eligible to be entered into the selection process. These requirements include:

1. Application was submitted during the application period.

2. Application is filled out completely.

3. Application fee is paid.

4. The location indicated on the application meets the zoning criteria.

5. The location indicated on the application meets the separation criteria established in Section 5.05.040.

6. A planning and/or building permit with a receipt proving payment for processing from the city planning department for the property location the commercial cannabis business will occupy.

7. A notarized signature from the property owner authorizing the location to be used for commercial cannabis business activity.

8. Authorization from the management association/CC&R's that a cannabis business use is allowed on that parcel (if applicable).

9. Business owner(s)/applicant(s) referenced on the application completes Live Scan background check.
25 10. There may be no change in applicant/business owner from the one(s) listed on the commercial cannabis business permit application. The application must identify individual owner(s) as defined in the MCRSA 19320(b)(1. et seq.) as may be amended.

11. All other application documents required in the city's application package instructions, the MCRSA, Proposition 64 and any other applicable regulations as they may be amended.

12. Photographs of the exterior of the building including the entrance(s), exit(s), street frontage(s) and parking area.

13. If the property is being rented, leased or purchased under contract, the lease agreement term, name of lessor or equivalent, shall be provided by a notarized signed affidavit of the property owner.

14. The name and address of the applicant's current agent for service of process.

15. A copy of the applicant's board of equalization seller's permit.

16. A copy of the commercial cannabis business operating standards, listed in Section

5.05.130 and Section 5.05.140 if applicable containing a statement dated and signed by the business owner stating that under penalty of perjury that they read, understand and shall ensure compliance with the aforementioned operating standards.

17. Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.

18. Release of the city from all liability associated with the commercial cannabis business.

Such a release includes indemnifying the city for claims, damages and injuries that may arise as a result of the commercial cannabis business.

19. If the applicant intends to apply for a conditional use permit to operate a commercial cannabis lounge, the application shall specify whether the lounge is Type I or Type II.

5.05.100 Commercial cannabis business permit application selection process.

A. The city manager or his/her designee will evaluate the applications received and make a determination on the eligibility of each application. The city manager shall confer with law enforcement on the background checks of the listed managers, employees and volunteers.

Each application that is complete and in compliance with this chapter shall be placed on the "qualified commercial cannabis business application list" and the applicant shall be notified in writing that they are a "qualified commercial cannabis business applicant".

B. Qualified applicants will appear on the "qualified applicant list" in the order that they are selected during the independent selection process. The city manager shall maintain the "qualified application list".

C. A qualified commercial cannabis business applicant must submit a written request each year to maintain its status on the "qualified application list".

D. All cannabis applications received after the initial application period will be reviewed for completeness and compliance with this chapter. If the application qualifies, it will be placed on a "waitlist" in the order it is received. Applicants placed on the "waitlist" shall be notified in writing of their "waitlist" status.

E. Cannabis applications placed on the "waitlist" will be moved to the "qualified applicant list" when the number of applicants on the "qualified applicant list" falls below twenty (20) and will be notified of the change in writing.
26 F. The city manager or his/her designee, after receiving the application and aforementioned information, will grant the permit if they find:

1. The required fee has been paid.

2. The application conforms in all respects to the provisions of this chapter.

3. The applicant has not knowingly made a material misrepresentation in the application.

4. The applicant has fully cooperated in the investigation and background checks required by this section.

5. The applicant has not had a commercial cannabis business license or other similar license or permit denied or revoked for cause by this city or any other city in the state within the last five years prior to the date of the application.

6. The commercial cannabis business, as proposed by the applicant would comply with all applicable laws including, but not limited to, health, zoning, fire and safety requirements.

7. The applicant has demonstrated compliance with all aspects of the Medical Marijuana Regulation and Safety Act (MCRSA) and any other applicable requirements contained in the California Health and Safety Code.

G. After all tenant improvements have been finalized by the commercial cannabis business owner, the city manager or his/her designee shall perform an inspection of the cannabis business location to confirm compliance with this section.

H. If any of the items listed in the application process are not met, the city manager shall notify the applicant of the deficiency within ten (10) days, after which the applicant will have ten (10) days from receipt of notice to correct the deficiency. If the deficiency is not corrected within ten (10) days, the city manager may deny the permit and notify the applicant of this determination in writing within ten (10) calendar days following the city manager's decision, after which the applicant can appeal the decision in accordance with Section 5.05.120 (appeal of denial of permit reference).

5.05.110 Cannabis permit annual renewal and assignment.

A. Applications for the renewal of a permit shall be filed with the city manager at least sixty (60) calendar days before the expiration of the current permit. Any permittee allowing their permit to lapse or whose permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees and be subject to all aspects of the selection process.

B. Any person desiring to obtain a renewal of their respective permit shall file a written application under penalty of perjury on the required form with the city manager who will conduct a review.

The application shall be accompanied by a nonrefundable filing fee established by the city council to defray the cost of the review required by this section. An applicant shall be required to update the information contained in their original permit application and provide any new and/or additional information as may be reasonably required by the city manager in order to determine whether said permit should be renewed. The city manager may defer review and determination whether said permit may be renewed.

C. Any approved commercial cannabis operator who wishes to assign their permit to another entity shall, together with the proposed assignee, submit a written assignment application on a form prescribed by the city manager. The application shall be signed under penalty of perjury and shall be accompanied by a nonrefundable filing fee established by the city council to defray the cost of the review required by this section. The city manager shall review the 27 application and determine whether the permit should be assigned. The city manager may defer review and determination on assignments to the City Council. 5.05.120 Appeal of denial of permit.

A. The city manager, in consultation with law enforcement, building official and Dunsmuir Fire Protection District, will review all commercial cannabis business applications, and all other relevant information, and determine if a permit should be granted. If the city manager determines that the permit shall not be granted, the reasons for denial shall be provided in writing to the applicant. The applicant shall have fourteen (14) calendar days from the date of the receipt of the written denial to correct the reasons for denial and request in writing reconsideration of permit issuance. Following review of the amended permit application, the city manager will approve or deny the permit by providing written notice to the applicant.

B. An applicant who disagrees with the city manager's decision may appeal such decision to the city planning commission by submitting a written appeal within five calendar days from receipt of the written denial. A decision of the planning commission may be appealed to the city council if the appeal is submitted in writing to the city clerk within five calendar days following the planning commission's action.

5.05.130 Operational standards for all commercial cannabis business activities.

A. Interior and exterior locations of the business property shall be monitored at all times by closed circuit cameras for security purposes. The cameras and recording system shall be of adequate quality, color rendition and resolution to allow the sufficient identification of any individual committing a crime on location premises. All controlled access areas, security rooms and all points of ingress/egress to limited access areas and all point of sale (POS) areas must have fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet. Camera video recordings shall be maintained unaltered in a secure onsite location for a period of not less than fourteen (14) days, and be available for inspection at any time.

B. Recordings shall be maintained, unaltered, for a period of not less than fourteen (14) days and shall be stored digitally. The city or law enforcement may request the recordings in connection with an investigation. If the recordings are not voluntarily provided, the city or law enforcement may seek a warrant or court order for the recordings.

C. A commercial cannabis business entity that remains inoperative for more than ninety (90) days shall be deemed "abandoned" and the permit shall be forfeited. A business may temporarily suspend operations for a period of time as may be reasonably required to affect upgrades, modifications, repairs, or other property issue mitigations as approved by the city manager or his or her designee.

D. Establish and participate in a track and trace system for reporting the movement of commercial cannabis throughout the distribution chain.

E. Register with the department of pesticide regulation if using any pesticides.

F. Comply with all state regulations regarding labeling and storage of all cannabis products.

G. Meet all state and local regulations for the disposal of all cannabis materials and materials used in conjunction with processing, distributing and cultivating of cannabis.

H. Conform to all state regulations requiring the use of appropriate weighing devices.

I. Conform to all state and local regulations regarding water usage.

J. All electrical and plumbing must comply with state and local regulations.

K. Comply with all state insurance and security bond regulations. 28 L. The commercial cannabis business shall have a centrally-monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows.

M. Meet all state deadlines for applying for a state license and receive a State license within six months after the date the state begins issuing licenses. This may be waived if the state has longer delays in issuing licenses of the type the commercial cannabis business seeks.

5.05.140 Additional operational standards for dispensaries.

A. If required by the state, at all times the cannabis dispensary is open, the dispensary shall provide at least one security guard who is licensed, possesses a valid department of consumer affairs "security guard card", and has a valid city business license.

B. The security guard and cannabis dispensary personnel shall monitor the site and the immediate vicinity of the site to assure that patrons immediately leave the site and do not consume cannabis in the vicinity of the dispensary or on the property or in the parking lot.

C. Signage.

1. All exterior signage shall conform with existing zoning requirements. The existing dispensary signage is "grandfathered" in as of April 1, 2017. Any additional signage modifications shall comply with existing zoning.

2. The following information shall be provided on a sign posted in a conspicuous location inside the cannabis dispensary (excluding cannabis dispensaries with permitted cannabis consumption lounges):
a. Smoking, ingesting or consuming cannabis on this property or within one hundred (100) feet of the business is prohibited.
b. No one under the age of twenty-one (21) shall be allowed to enter this facility unless they are a qualified patient or a primary caregiver and they are in the presence of their parent, legal guardian, or licensed attending physician. c. The city has not tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.

D. No recommendations from a doctor for medical cannabis shall be issued on-site.

E. Each dispensary owner shall establish minimum training standards for all employees.

F. No storefront cannabis dispensary or manager shall cause or allow the sale, distribution, or consumption of alcoholic beverages, tobacco, or tobacco products on the site; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages for the site; or operate a business on or adjacent to the site that sells alcoholic beverages, tobacco, or tobacco products. No person shall possess or store alcoholic beverages, tobacco, or tobacco products on the site.

G. Drive through sales must be approved in writing by the city prior to implementation.

H. The dispensary shall comply with state department of health requirements pertaining to use of commercial kitchen facilities for the cannabis operations.

I. Hours of operation shall be limited to: Monday—Sunday 8:00 a.m.—10:00 p.m.

J. No one under the age of twenty-one (21) shall be allowed to enter a dispensary unless such person is a qualified patient and is accompanied by his or her primary caregiver, licensed attending physician, parent(s) or documented legal guardian. 29 K. Any commercial cannabis dispensary already in compliance and permitted by the city will be considered selected and continue to operate under the regulations of this chapter, provided however, that in order to continue operating such commercial cannabis business must apply for a commercial cannabis business permit pursuant to this chapter and otherwise meet all other conditions and requirements of this chapter imposed on newly established commercial cannabis businesses.

5.05.145 Additional operational standards for cannabis consumption lounges.

A. No person shall operate a cannabis consumption lounge without first obtaining a conditional use permit approved by the planning commission. Any dispensary containing a cannabis consumption lounge shall at all times display a valid storefront cannabis dispensary permit with a condition that authorizes the operation of a lounge in accordance with this article.

B. The following information shall be provided on a sign posted in a conspicuous location inside any cannabis dispensary containing a permitted cannabis lounge:

1. Smoking, ingesting or consuming cannabis on this property or within one hundred (100) feet of the business is prohibited unless within a Type 1 or Type 2 cannabis consumption lounge area.

2. No one under the age of twenty-one (21) shall be allowed to enter this facility unless they are a qualified patient or a primary caregiver and they are in the presence of their parent, legal guardian, or licensed attending physician. In no event shall anybody under the age of twentyone (21) be allowed to enter the cannabis lounge located within this facility.

3. The city has not tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed or consumed at this location.

C. A storefront cannabis dispensary permit may authorize the operation of a cannabis consumption lounge with one of the following conditions:

1. Type 1 condition (non-smoking consumption). A type 1 condition on a valid storefront cannabis dispensary permit authorizes a storefront cannabis dispensary permittee to allow persons to consume cannabis and cannabis products, other than by smoking or vaping, in a cannabis consumption lounge on the site, subject to the provisions of this chapter.

2. Type 2 condition (all consumption). A type 2 condition on a valid storefront cannabis dispensary permit authorizes storefront cannabis dispensary permittee to allow persons to consume cannabis and cannabis products, including by smoking or vaping, in a cannabis consumption lounge on the site, subject to the provisions of this chapter.

D. Cannabis consumption lounge fees. Separate fees for cannabis consumption lounges are established and updated from time to time by resolution of the City Council. When applying for or renewing a cannabis consumption lounge condition pursuant to this chapter, the applicant shall submit the cannabis consumption lounge program fee, plus the applicable fee for the condition that the applicant is seeking to obtain.

E. All cannabis consumption lounges must comply with the following:
30 1. Size. A cannabis consumption lounge must be no larger than 1,500 square feet or 50% of the total floor area of the cannabis dispensary site, whichever is smaller.

2. Not visible to the public. The interior of the cannabis consumption lounge must not be visible from the public right-of-way, non-age-restricted areas, unsecured areas surrounding the buildings on the site, or the site's main entrance and lobby.

3. Partitioned. A cannabis consumption lounge must be separated from all other areas of the storefront dispensary by solid walls and doors. The wall may include glass to provide visibility between the dispensary and the lounge.

4. Signage. A sign must be displayed at each entrance to the lounge in a conspicuous place so that all persons entering the lounge may readily see it. Each sign shall be not less than 8 inches by 10 inches in size. The following are sign requirements according to lounge type:
a. Cannabis consumption lounge – type 1 signage. A cannabis consumption lounge operator authorized to operate a type 1 cannabis consumption lounge shall display at each entrance of the lounge a sign that states, “Cannabis consumption, except smoking and vaping, is allowed inside of this lounge. No person under 21 years of age shall be in the lounge.” b. Cannabis consumption lounge – type 2 signage. A cannabis consumption lounge operator authorized to operate a type 2 cannabis consumption lounge shall display at each entrance of the lounge a sign that states, “Cannabis consumption, including smoking and vaping, is allowed inside of this lounge. No person under 21 years of age shall be in the lounge.” F. Waste containers. Cannabis consumption lounge operators shall include properly maintained solid waste, organic waste, and recycling containers in sufficient numbers and locations to service the needs of the lounge.

G. Cannabis consumption lounge operating hours. No cannabis consumption lounge operator shall operate a lounge outside of the attached dispensary’s normal operating hours. Any live music within a lounge is subject to prior approval by the city manager and shall be limited to no more than 6 events per year.

H. Soundproofing. All lounges must be adequately soundproofed so that the interior noise does not violate chapter 8.12 (Noise Control).

I. Operation and Management. Cannabis lounges shall maintain a management plan that addresses operator and staff experience, good neighbor issues, client supervision, client services, and food services as applicable. Such plan shall be submitted to and approved by the City. The plan shall include the following:

1. Provisions for the operator’s responsibilities to educate their managers, employees, and volunteers about the various types of cannabis and cannabis products allowed in the consumption lounge, including the potency, absorption time, and effects; and provisions for the operator to train their managers, employees, and volunteers to likewise educate customers on their purchases.

2. Provisions for training employees to recognize signs of impairment in their customers. 31 3. Identification of the cannabis consumption lounge operator and a representative to address community concerns.

4. Provisions to maintain at least one responsible onsite employee at all times for every ten clients.

5. Measures taken to protect employee health, such as wearing protective masks in areas exposed to smoking and vaping.

6. Measures taken for proper on- and off-site security.

J. Manager. The cannabis consumption lounge operator’s manager shall be in the lounge whenever there is a customer in the lounge.

K. Consumption of cannabis and cannabis products on site.

1. Consumption in lounge only. No person shall consume cannabis or cannabis products within a storefront cannabis dispensary in any area other than the cannabis consumption lounge.

2. No cannabis consumption lounge operator shall allow any person to consume in the lounge any cannabis or cannabis product that was not purchased from the associated dispensary.

L. Prepackaged food and beverages.

1. No cannabis consumption lounge operator shall sell or provide for free any cannabis or cannabis products inside the lounge.

2. No cannabis consumption lounge operator may sell or provide for free any food or beverages in the lounge, unless it is prepackaged and does not contain cannabis or alcohol.

3. No cannabis consumption lounge operator shall store, display, contaminate, or commingle any prepackaged food or beverage with any cannabis or cannabis product on the site.

M. Customer conduct.

1. Closing announcement. One hour before the closing time of the lounge and at the closing time, the cannabis consumption lounge operator or their manager shall announce the closing time of the lounge and request that customers respect the residents of the adjacent neighbors by being quiet when leaving.

2. Retail limit. No cannabis consumption lounge operator or its manager or employee shall provide cannabis or cannabis products to obviously impaired customers.

3. Car services. A cannabis consumption lounge operator shall provide written information on ridesharing and ride-hailing car services for their customers.

4. Entry and exit of the lounge. A cannabis consumption lounge operator or its manager, employee, or volunteer shall escort customers in and out of the lounge.

5. No loitering shall be permitted- immediately outside the lounge, on neighboring properties, in parking areas, and in City public areas, within two hours of closing. 32 N. Additional cannabis consumption lounge premise restrictions – type 2. A type 2 cannabis consumption lounge must comply with the following:

1. Negative pressure. The lounge must be designed to have negative pressure to limit leakage of smoke and particulate matter into the non-smoking areas of the site.

2. HVAC. Type 2 Condition (all consumption) lounges must have an HVAC system that does not recirculate air and that has a high rate of air exchange.

3. Odor prevention. The lounge must have an odor-absorbing ventilation and exhaust system that prevents the odor generated from inside of the lounge from being detected outside of the site or within any other area located within the same building as the lounge.

4. Masks. Employees shall not be penalized for wearing a mask for respiratory protection in any area where cannabis is smoked. If an employee chooses to wear a mask, the lounge operator must pay for it in accordance with California Business and Professions Code Section 26200(g)(2)(G).

5.05.150 Deliveries.

A. Deliveries may be made from a licensed dispensary or retail outlet.

B. All employees who deliver cannabis must have a valid identification card at all times while the delivery is being made.

C. Deliveries may only take place during normal business hours of the dispensary or retail outlet.

D. A customer requesting delivery shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers.

E. A dispensary or retail outlet shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered and any other information required by the state.

F. A cannabis business shall only maintain and deliver cannabis in aggregate amounts tied to its client's order. A cannabis business shall ensure compliance with state law limits as they regard cannabis and cannabis products.

G. A manifest with all information required in this section must accompany any delivery person or delivery method at all times during the delivery process and delivery hours.

5.05.160 Maintenance of records.

A. A cannabis dispensary shall maintain records at the location accurately and truthfully documenting:

1. The full name, address, and telephone number(s) of the owner, landlord, and/or lease of the location;

2. The full name, address, and telephone number(s) of all members who are engaged in the management of the dispensary.

3. Medical cannabis dispensaries shall maintain the full name, address and telephone number(s) of all patient members to whom the business provides medical cannabis and a copy of a physician-issued recommendation card for all patient members. 33 4. All receipts of the dispensary, including but not limited to: all contributions, reimbursements, and reasonable compensation, whether in cash or in kind, and all expenditures incurred by the dispensary.

B. These records shall be maintained for a period of seven years and shall be made available by the dispensary to the law enforcement and/or code enforcement officials upon request.

5.05.170 Inspection and enforcement responsibilities.

City code enforcement officials may enter and inspect the location of any commercial cannabis business between the normal business hours to ensure compliance with this section. In addition, law enforcement may enter and inspect the location of any cannabis business and the recordings and records maintained as required by this section, except that the inspection and copying of private medical records shall be made available to law enforcement only pursuant to a properly executed search warrant, subpoena, or court order. A person engaging in commercial cannabis business without a permit and associated unique identifiers required by this chapter shall be subject to civil penalties of up to twice the amount of the permit fee for each violation, and the department, state or local authority, or court may order the destruction of cannabis associated with that violation.

A violator shall be responsible for the cost of the destruction of cannabis associated with his or her violation, in addition to any amount covered by a bond required as a condition of licensure. Each day of operation shall constitute a separate violation of this section.

5.05.180 Fees.

All cannabis operations shall pay applicable fees and taxes, which may include one or more of the following:

A. Application Fee. The business applicant shall submit a non-refundable fee to cover the cost of processing an application for the commercial cannabis business.

B. Business License Fee. The business owner shall at all times maintain a current and valid business certificate and pay all business taxes required by the Dunsmuir Municipal Code.

C. Regulatory License Fee. The business owner shall pay an annual regulatory license fee ("regulatory fee") to cover the costs of anticipated enforcement relating to the cannabis operation. The amount of the fee shall be set by resolution of the city council and be supported by the estimated additional costs of enforcement and monitoring associated with the cannabis operation. The regulatory fee shall be due and payable prior to opening for business and thereafter on or before the anniversary date. The regulatory fee may be amended from time to time based upon actual costs.

5.05.190 Violation and enforcement.

Each and every violation of this section shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the municipal code. Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, revocation of the business's commercial cannabis business permit, disgorgement and payment to the city of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or equity. The city may also pursue any and all remedies and actions available and applicable under local and state laws for any violations committed by the cannabis business and persons related or associated with the cannabis business.

SECTION 2: CONSTITUTIONALITY: If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed 34 this ordinance and each section, subsection, sentence, clause, or phrase of this ordinance irrespective of the fact that any one or more of the sections, subsections, sentences, clauses or phrases be declared unconstitutional.

SECTION 3: PROHIBITED: Unless expressly permitted by the City Municipal Code, all cultivation, manufacture, distribution, possession, storing, laboratory testing, labeling, transportation, distribution, delivery, sale, or consumption of cannabis or cannabis products is prohibited within the City of Dunsmuir.

SECTION 4: EFFECTIVE DATE: This ordinance shall become effective thirty (30) days after its passage, and within fifteen (15) days after its adoption a summary of it shall be published in the Mt.

Shasta Daily Herald, printed and published in Siskiyou County.

INTRODUCED this 7th day of May, 2026 at a regular meeting of the City of Dunsmuir City Council by the following vote:

AYES: Lucchesi, Sebring, Bryan, Clarno
NOES:

ABSENT: Hubbard
ABSTAIN:

PASSED AND ADOPTED this 21st day of May 2026, at a regular meeting of the City of Dunsmuir City Council by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________________ Juliana Lucchesi, Mayor ATTEST: _________________________________ Wendy Perkins, City Clerk 35

City of Dunsmuir

STAFF REPORT
RE: Public Hearing Short-term rental ordinance changes MEETING DATE: 5/21/26 SUBMITTED BY: Interim City Manager
PURPOSE OF REPORT: Information only Discussion Action Item PLACEMENT ON AGENDA: New Business Old Business Public Hearing Special Presentation Consent
WHAT IS BEING ASKED OF THE CITY COUNCIL: Make changes to the Short-term Rental ordinance BACKGROUND/DISCUSSION: City Council held a first reading and is now holding a second reading of the proposed revisions included in Ordinance 585 would 1) allow short-term rentals as permitted uses rather than accessory uses in all zoning districts allowing residential uses, and 2) reduce the parking requirements for shortterm rentals in the T-C and MU-3 zoning district.

OPTIONS: hear from residents, make changes or approve as written FISCAL IMPACT:

None Yes Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase:

Affected fund(s): General Fund Water Fund Sewer Fund Other:

Comments:

SUGGESTED MOTIONS: Motion to hold second reading ordinance 585 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUNSMUIR AMENDING TITLE 17 OF THE DUNSMUIR MUNICIPAL CODE AS FOLLOWS:

AMENDING SECTIONS 17.16, 17.20, 17.24, 17.28, 17.32, 17.36, 17.40, AND 17.64 RELATED TO ALLOWING SHORT-TERM RENTALS AS PERMITTED USES IN ALL ZONING DISTRICTS THAT ALLOW RESIDENTIAL USES; AND AMENDING SECTION 17.100.060 TO REDUCE PARKING REQUIREMENTS FOR SHORT-TERM RENTALS IN THE TOWN CENTER (T-C) AND MIXED USE 3 (MU-3) ZONING DISTRICT, and to waive further reading of the text and adopt ordinance
Attachments: Ordinance 585
36 ORDINANCE NO. 585

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUNSMUIR AMENDING TITLE 17 OF THE DUNSMUIR MUNICIPAL CODE AS FOLLOWS: AMENDING SECTIONS 17.16, 17.20, 17.24, 17.28, 17.32, 17.36, 17.40, AND 17.64 RELATED TO

ALLOWING SHORT-TERM RENTALS AS PERMITTED USES IN ALL ZONING DISTRICTS THAT ALLOW RESIDENTIAL USES; AND AMENDING SECTION

17.100.060 TO REDUCE PARKING REQUIREMENTS FOR SHORT-TERM RENTALS IN THE TOWN CENTER (T-C) AND MIXED USE 3 (MU-3) ZONING DISTRICT WHEREAS, Title 17 Zoning of the Dunsmuir Municipal Code allows short-term rentals only as accessory uses in Section 17.16 Low Density Residential (R-1), Section 17.20 Medium Density Residential (R-2), 17.24 High Density Residential (R-3), 17.28 Residential Mixed Use (MU-1), 17.32 Neighborhood Mixed Use (MU-2), 17.36 Central Mixed Use (M-3),

17.40 Town Center (T-C), and 17.64 Planned Development (P-D); and WHEREAS, accessory uses require a principally permitted use to be established prior to or concurrently with the accessory use, and therefore, the current Zoning Code requires short-term rentals to be established with or after a primary use (typically a primary single-family or multi-family residence or commercial use) and not as standalone uses; and WHEREAS, the majority of short-term rentals in the City of Dunsmuir would be made invalid by the current Zoning Code as they are the principal uses on their subject properties and are not accessory to principally permitted uses; and WHEREAS, the intention of the City Council in developing Dunsmuir Municipal Code Chapter 17.100 “Short-term Rentals” was to allow short-term rentals as primary uses in all zoning districts allowing residential uses as evidenced in Section 17.100.040 which states, “Short-term rentals are allowed in all zone districts that allow residential use with approval of a transient occupancy registration certificate [ . . . ]” and as indicated by City Council at the regular meeting that occurred on July 17, 2025; and
WHEREAS, the City wishes to ensure internal consistency in Title 17 Zoning of the Dunsmuir Municipal Code regarding short-term rentals; and WHEREAS, the City seeks to clarify for staff and property owners that short-term rentals are an allowable principally permitted use subject to the provisions of Chapter 17.100 ShortTerm Rentals; and WHEREAS, most properties in the Town Center (T-C) zoning district are currently improved with no off-street parking; and
WHEREAS, most properties in the T-C zoning district have 50-foot-wide frontages or less, as evidenced by Assessor’s Map 58-11 and 58-14, and this amount of frontage is generally infeasible to provide off-street parking along with a usable structure; and WHEREAS, the City has an interest in supporting the development of short-term rentals within the T-C zoning district due to its centralized downtown location; and WHEREAS, off-street parking requirements are not determined by zoning district but by use as established in Section 17.76 of the Dunsmuir Municipal Code; and 37 WHEREAS, the City has an interest in ensuring the continuing operations and development of short-term rentals in the City; and
WHEREAS, planning staff presented an oral and written staff report on the draft ordinance amending Sections 17.16, 17.20, 17.24, 17.28, 17.32, 17.36, 17.40, 17.64, and

17.100 of Title 17, Zoning of the Dunsmuir Municipal Code at the Planning Commission’s regularly
scheduled meeting on April 8, 2026, and the Planning Commission recommended by a 5 to 1 vote that the City Council adopt the ordinance amending Title 17 of the Dunsmuir Municipal Code; and
WHEREAS, a Notice of Public Hearing was published in the Mt. Shasta Herald on September 10, 2025, more than 20 days in advance of the Planning Commission public hearing on October 8, 2025, pursuant to Government Code section 65854.

NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Dunsmuir does ordain as follows:

SECTION I: Section 17.16 “Low Density Residential” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.16 Low Density Residential, R-1
****

17.16.020 Permitted uses.

Subject to issuance of a building permit, business license, and/or other required permit(s), none but the following uses, or uses which in the opinion of the Planning Commission are similar, will be allowed as a principally permitted use in the R-1 zoning district:

A. Residential care homes.

B. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

C. Single-family residential.

D. Small employee housing.

E. Supportive housing.

F. Transitional housing.

17.16.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the R-1 zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Cottage food operations pursuant to Section 17.96.050 (Cottage food operations).

C. Family childcare homes.

D. Home occupations pursuant to Section 17.96.040 (Home occupations).

E. Second dwelling units pursuant to Section 17.92.040 (Second dwelling units). 38 F. Signs pursuant to Chapter 17.80 (Signs).

G. Usual and customary structures associated with a permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION II: Section 17.20 “Medium Density Residential” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.20 Medium Density Residential, R-2
****

17.20.020 Permitted uses.

Subject to issuance of a building permit, business license, and other required permits, none but the following uses, or uses which in the opinion of the Planning Commission are similar, will be allowed as a principally permitted use in the R-2 zoning district:

A. Duplex residential.

B. Residential care homes.

C. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

D. Single-family residential.

E. Small employee housing.

F. Supportive housing.

G. Transitional housing.

17.20.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the R-2 zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Family childcare homes.

C. Home occupations pursuant to Section 17.96.040 (Home occupations).

D. Second dwelling units pursuant to Section 17.92.040 (Second dwelling units).

E. Signs pursuant to Chapter 17.80 (Signs).

F. Usual and customary structures associated with a permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION III: Section 17.24 “High Density Residential” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.24 High Density Residential, R-3
****
39 17.24.020 Permitted uses.

Subject to issuance of a building permit, business license, and/or other required permits, none but the following uses, or uses which in the opinion of the Planning Commission are similar, will be allowed as a principally permitted use in the R-3 zoning district:

A. Dormitories.

B. Duplex residential.

C. Multifamily residential.

D. Residential care homes.

E. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

F. Single-family residential.

G. Small employee housing.

H. Supportive housing.

I. Transitional housing.

17.24.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the R-3 zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Cottage food operations pursuant to Section 17.96.050 (Cottage food operations).

C. Family childcare homes.

D. Home occupations pursuant to Section 17.96.040 (Home occupations).

E. Second dwelling units pursuant to Section 17.92.040 (Second dwelling units).

F. Signs pursuant to Chapter 17.80 (Signs).

G. Usual and customary structures associated with a permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION IV: Section 17.28 “Residential Mixed Use” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.28 Residential Mixed Use, MU-1
****

17.28.020 Permitted uses.

Subject to issuance of a building permit, business license, and/or other required permits, none but the following uses, or uses which in the opinion of the planning commission are similar, will be allowed as principally permitted uses in the MU-1 zoning district:

A. Artist studios.
40 B. Community gardens pursuant to Section 17.92.150 (Community gardens).

C. Live/work units pursuant to Section 17.96.030 (Live/work units).

D. Media production.

E. Mixed-use developments of two (2) or more uses permitted pursuant to this section.

F. Personal services, self-service laundromats with use permit.

G. Professional offices.

H. Public and private schools, onsite attendance of thirty-five (35) or fewer students.

I. Residential uses:

1. Duplex residential.

2. Multifamily residential.

3. Residential care homes.

4. Single-family residential.

5. Small employee housing.

6. Supportive housing.

7. Transitional housing.

J. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

K. Small adult day programs.

17.28.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the MU-1 zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Cottage food operations pursuant to Section 17.96.050 (Cottage food operations).

C. Family childcare homes.

D. Home occupations pursuant to Section 17.96.040 (Home occupations).

E. Second dwelling units pursuant to Section 17.92.040 (Second dwelling units).

F. Signs pursuant to Chapter 17.80 (Signs).

G. Usual and customary structures associated with a permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION V: Section 17.32 “Neighborhood Mixed Use” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.32 Neighborhood Mixed Use, MU-2
****
41 17.32.020 Permitted uses.

Subject to issuance of a building permit, business license, and/or other required permits, none but the following uses, or uses which in the opinion of the Planning Commission are similar, will be allowed as principally permitted uses in the MU-2 zoning district:

A. Artist studios.

B. Artisan crafts manufacturing.

C. Banks and financial services.

D. Business and professional offices.

E. Business support services.

F. Community gardens pursuant to Section 17.92.150 (Community gardens).

G. Convenience stores and pharmacies.

H. Craft food and beverage production, alcohol with use permit.

I. Grocery stores and supermarkets.

J. Health clinics, medical offices, and laboratories.

K. Indoor sports and fitness facilities.

L. Live/work units pursuant to Section 17.96.030 (Live/work units).

M. Media production.

N. Mixed-use developments of two (2) or more uses permitted pursuant to this section.

O. Personal services.

P. Printing and publishing.

Q. Public and private schools.

R. Residential uses:

1. Duplex residential.

2. Multifamily residential.

3. Residential care homes.

4. Single-family residential.

5. Small employee housing.

6. Supportive housing.

7. Transitional housing.

S. Retail food establishments.

T. Retail sales.

U. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

V. Small adult day programs.

W. Veterinary offices.
42 17.32.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the MU-2 zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Certified farmers’ markets.

C. Cottage food operations pursuant to Section 17.96.050 (Cottage food operations).

D. Family childcare homes.

E. Home occupations pursuant to Section 17.96.040 (Home occupations).

F. Mobile food sales pursuant to Chapter 17.112 (Mobile Food Sales).

G. Second dwelling units pursuant to Section 17.92.040 (Second dwelling units).

H. Signs pursuant to Chapter 17.80 (Signs).

I. Temporary outside sales associated with a permitted nonresidential use, such as sidewalk or patio sales, not exceeding three (3) days in any thirty (30)-day period.

J. Usual and customary structures associated with a permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION VI: Section 17.36 “Central Mixed Use” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.36 Central Mixed Use, MU-3
****

17.36.020 Permitted uses.

Subject to issuance of a building permit, business license, and/or other required permits, none but the following uses, or uses which in the opinion of the planning commission are similar, will be allowed as principally permitted uses in the MU-3 zoning district:

A. Artist studios.

B. Artisan crafts manufacturing.

C. Banks and financial services.

D. Business and professional offices.

E. Business support services.

F. Clubs, lodges, and private meeting halls.

G. Community gardens pursuant to Section 17.92.150 (Community gardens).

H. Convenience stores and pharmacies.

I. Craft food and beverage production.

J. Grocery stores and supermarkets.
43 K. Health clinics, medical offices, and laboratories.

L. Indoor sports and fitness facilities.

M. Live/work units pursuant to Section 17.96.030 (Live/work units).

N. Media production.

O. Mixed-use developments of two (2) or more uses permitted pursuant to this section.

P. Personal services.

Q. Printing and publishing.

R. Public and quasi-public facilities.

S. Residential uses:

1. Duplex residential.

2. Emergency shelters pursuant to Section 17.92.110 (Emergency shelters).

3. Multifamily residential.

4. Residential care home.

5. Single-family residential.

6. Small employee housing.

7. Supportive housing.

8. Transitional housing.

T. Retail food establishments.

U. Retail sales.

V. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

W. Small adult day programs.

X. Transient occupancy uses:

1. Bed & breakfast inns pursuant to Chapter 17.104 (Bed and Breakfast Inns).

2. Hostels, forty (40) guests or fewer.

3. Hotels and motels, thirty-five (35) guest rooms or fewer.

17.36.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the MU-3 zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Certified farmers’ markets.

C. Cottage food operations pursuant to Section 17.96.050 (Cottage food operations).

D. Family childcare homes.

E. Home occupations pursuant to Section 17.96.040 (Home occupations).

F. Mobile food sales pursuant to Chapter 17.112 (Mobile Food Sales). 44 G. Second dwelling units pursuant to Section 17.92.040 (Second dwelling units).

H. Signs pursuant to Chapter 17.80 (Signs).

I. Temporary outside sales such as sidewalk or patio sales not exceeding three (3) days in any thirty (30)-day period.

J. Usual and customary structures associated with a principally permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION VII: Section 17.40 “Town Center” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.40 Town Center, T-C
****

17.40.020 Permitted uses.

The following uses are permitted in the T-C zone district subject to issuance of a building permit, business license or other required permit(s):

A. Adult day programs.

B. Alcoholic beverage sales.

C. Artisan crafts manufacturing.

D. Artist studios.

E. Banks and financial services.

F. Business and professional offices.

G. Business support services.

H. Clubs, lodges, and private meeting halls.

I. Community gardens pursuant to Section 17.92.150 (Community gardens).

J. Convenience stores and pharmacies.

K. Craft food and beverage production.

L. Grocery stores and supermarkets.

M. Health clinics, medical offices, and laboratories.

N. Hostels, hotels, and motels.

O. Indoor entertainment facilities.

P. Indoor sports and fitness facilities.

Q. Live/work units pursuant to Section 17.96.030 (Live/work units).

R. Media production.

S. Mixed-use developments of two (2) or more nonresidential uses permitted pursuant to this section.

T. Personal services.

U. Printing and publishing.
45 V. Public and private schools, onsite attendance of thirty-five (35) or fewer students.

W. Public and quasi-public facilities.

X. Retail food establishments.

Y. Retail sales.

Z. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

AA. Theaters and playhouses.

BB. Vertical mixed-use developments of one (1) or more permitted nonresidential use and one (1) or more of the following residential uses:

1. Duplex residential.

2. Multifamily residential.

3. Residential care home.

4. Single-family residential.

5. Small employee housing.

6. Supportive housing.

7. Transitional housing.

17.40.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the T-C zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Certified farmers’ markets.

C. Cottage food operations pursuant to Section 17.96.050 (Cottage food operations).

D. Family childcare homes.

E. Home occupations pursuant to Section 17.96.040 (Home occupations).

F. Mobile food sales pursuant to Chapter 17.112 (Mobile Food Sales).

G. Signs pursuant to Chapter 17.80 (Signs).

H. Temporary outside sales associated with a permitted nonresidential use, such as sidewalk or patio sales, not exceeding three (3) days in any thirty (30)-day period.

I. Usual and customary structures associated with a permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION VIII: Section 17.64 “Planned Development” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.64 Planned Development, P-D
****
46 17.64.020 Permitted uses.

Provided there is no division of property, and subject to issuance of a building permit, business license or other required permit(s), the following uses, and uses which in the opinion of the Planning Commission are similar, are allowed as principally permitted uses in the P-D zoning district without the need for a planned development permit:

A. Crop and tree production.

B. Public and quasi-public facilities.

C. Short-term rentals pursuant to Chapter 17.100 (Short-Term Rentals).

D. Single-family residential.

17.64.030 Accessory uses.

When established or constructed concurrently with or subsequent to the principally permitted use, the following uses are permitted in the P-D zoning district subject to issuance of a building permit, business license, or other required permit(s):

A. Accessory dwelling units and junior accessory dwelling units pursuant to Chapter 17.116 (Accessory Dwelling Units).

B. Cottage food operations pursuant to Section 17.96.050 (Cottage food operations).

C. Family childcare homes.

D. Home occupations pursuant to Section 17.96.040 (Home occupations).

E. Signs pursuant to Chapter 17.80 (Signs).

F. Usual and customary structures associated with a principally permitted use, including fences and walls pursuant to Section 17.92.120 (Fences, walls, hedges, and equivalent screening).

SECTION IX: Section 17.100 “Short-term Rentals” of the Dunsmuir Municipal Code is hereby amended to read as follows:

Chapter 17.100 Short-term Rentals
****

17.100.060 Operational Standards
C. Parking. One off-street parking space shall be provided for short-term rentals with two (2) or fewer bedrooms and two (2) off-street parking spaces shall be provided for short-term rentals with three (3) or more bedrooms, with the exception of short-term rentals in the Town Center (T-C) and Mixed Use (MU-3) zoning district, which are not required to provide off-street parking unless it is already available onsite. When located on property with more than one (1) dwelling unit, the off-street parking requirement for the short-term rental is in addition to all other off-street parking requirements. No vehicle, including without limitation boat trailers and recreational vehicles, may be parked at a short-term rental outside of improved parking areas or in a location or manner that does not comply with city standards.

SECTION II: Because there is not substantial evidence, in light of the whole record before the City, that this ordinance would have a significant impact on the environment, the City Council has determined that this ordinance is exempt from the California Environmental Quality Act (CEQA) 47 pursuant to pursuant to CEQA Guidelines Section 15301, Existing Facilities, and Section 15061(b)(3), the “common sense exemption.”
SECTION III: If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, or phrase of this ordinance irrespective of the fact that any one or more of the sections, subsections, sentences, clauses or phrases be declared unconstitutional.

SECTION IV: This ordinance shall become effective thirty (30) days after its passage, and within fifteen (15) days after its adoption a summary of it shall be published in the Siskiyou News, printed and published in Siskiyou County.

PASSED AND ADOPTED this ____ day of _____________ 2026, at a regular meeting of the City of Dunsmuir City Council by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________________ Juliana Lucchesi, Mayor ATTEST: _________________________________ Wendy Perkins, City Clerk 48

CITY OF Dunsmuir

STAFF REPORT
RE: Delinquent Utility User Accounts and delinquent abatement costs to place on tax roll and be collected by county
MEETING DATE: 5-21-2026
SUBMITTED BY: Utility Billing department and Finance
PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL:

Approve a resolution identifying the delinquent utility accounts as well as 2 delinquent abatement recovery invoices for submission to the Siskiyou County Auditor-Controller for inclusion on the property tax roll.

BACKGROUND/DISCUSSION:

California Health and safety code, sections 5473 et seq; Resolution 2010-74; and Ordinance 8.08.140 of the city of Dunsmuir municipal code authorize the city to place delinquent charges on the property tax roll.

The total amount for assessment is $9,362.90 that is due to the water, sewer and garbage fund. This is a liability on the enterprise funds that the other paying citizens are subsidizing. It is an unfair burden for rate payers.

There are also 2 delinquent abatement recovery invoices ($9,747.16 and $5,015.50) to be placed on the tax roll.

These invoice have gone through due process.

The accounts below are delinquent as of 1/1/2026. The identified accounts are past due greater than 2 years.

The city has notified the delinquent account holders and given them years of opportunity to bring their account current including options for payment plans. Utility bills and delinquency notices are mailed monthly. Liens were placed against properties years ago.

Approval of the resolution requires a 2/3 vote of the members of the legislative body.

OPTIONS:

1. Confirm the list of delinquent utility accounts and abatement recovery invoice and approve the proposed resolution.

2. Do not approve but provide direction to staff.

FISCAL IMPACT: No cost to the citizens or rate payers of Dunsmuir.

None Yes Budgeted Item? Yes No
Budget Adjustment Needed? Yes No
Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:

Comments:

SUGGESTED MOTIONS:
49

Via consent; Move to adopt resolution 2026-11 confirming and approving the utility billing delinquency list and direct staff to submit the list to the County Auditor-Controller for inclusion on the property tax roll.

Attachments: Tax Roll Resolution
Parcel number Account number Amount for assessment Date of Total Tax Year Assesed 058-212-040-000 01-0020015 $1,483.43 1/1/2026 26/27
058-181-070-000 01-0103220 $2,226.88 1/1/2026 26/27
059-221-020-000 01-0008030 $1,762.63 1/1/2026 26/27
058-102-250-000 01-0019087 $1,199.88 1/1/2026 26/27
058-112-010-000 01-0920004 $2,690.08 1/1/2026 26/27
$9,362.90
Parcel number
Amount for
assessment Tax Year Assessed
058-191-050-000 Abatement cost recover invoice $9,747.16 26/27 058-101-200-000 Abatement cost recover invoice $5,015.50 26/27 50 Resolution 2026- 11

A RESOLUTION OF THE COUNCIL OF THE CITY OF DUNSMUIR REGARDING

COLLECTION OF DELINQUENT CHARGES
WHEREAS, the City of Dunsmuir is authorized that any charges may be collected on the tax roll pursuant to municipal code 8.08.140 and Resolution 2010-74. Charges may be collected on the tax roll in the same manner as property taxes after giving notice to the affected property owner at the time and place for hearing objections or protests to the City’s statement of delinquent charges and,
WHEREAS, the city mailed notices to all affected property owners a written certified notice of filing of report and collection of charges on property tax roll FY 2026 2027 giving the affected property owners until March 25
th 2026 to object or make payments to the balance owed, WHEREAS, the city is owed $9,747.16 and $5,015.50 in abatement recovery, NOW THEREFORE, BE IT RESOLVED by the City of Dunsmuir that the report from the City describing the amount of charges and delinquencies for FY 2025/2026 is attached hereto entitled Exhibit A and is hereby approved, received and filed; the City of Dunsmuir herby determines that the utility charges are in the amount of $9,362.90, and abatement charges are in the amount of $14,762.66 shall be collected by the Siskiyou County Tax Collector on the Property Tax Roll in the same manner as property taxes; and that staff is hereby directed to file with the Siskiyou County Auditor a copy of the Resolution on or before August 1 st 2026, whereby
the County Auditor shall enter the amount of the delinquent charges as specified in this Resolution against each of the affected parcels of real property specified herein as they appear on the current assessment roll, and collect the charges in the same manner as property taxes.

It is Hereby Certified that the foregoing Resolution was introduced and duly adopted by the City of Dunsmuir at a regular meeting held on May 21st 2026 by the Following vote; AYES:

NOES:

ABSTAIN:
____________________________ ___________________________ City Clerk Perkins Mayor Juliana Lucchesi
51 ATTACHMENT A
Parcel number Account number Amount for assessment Date of Total Tax Year Assesed 058-212-040-000 01-0020015 $1,483.43 1/1/2026 26/27
058-181-070-000 01-0103220 $2,226.88 1/1/2026 26/27
059-221-020-000 01-0008030 $1,762.63 1/1/2026 26/27
058-102-250-000 01-0019087 $1,199.88 1/1/2026 26/27
058-112-010-000 01-0920004 $2,690.08 1/1/2026 26/27
$9,362.90
Abatement
058-191-050-000 $9,747.16 26/27
058-101-200-000 $5,015.50 26/27
$14,762.66

52

CITY OF DUNSMUIR

STAFF REPORT TO CITY COUNCIL
May 2026

DOWNTOWN ENTERTAINMENT ZONE ESTABLISHMENT
SUMMARY: Effective January 1, 2025, California Senate Bill 969 authorizes cities to create entertainment zones where patrons of participating ABC-licensed establishments may carry and consume alcoholic beverages on public streets, sidewalks, and rights-of-way within defined boundaries. The City of Redding established the largest such zone in California in late 2025 under Redding Municipal Code 6.42, providing a directly applicable model for Dunsmuir. This staff report outlines the step-by-step process for establishing a Dunsmuir Downtown Entertainment Zone, identifies ten policy questions requiring City Council direction before staff can draft the enabling ordinance, and provides a detailed implementation budget. Staff recommends Council direct staff to proceed and provide direction on the key policy decisions identified herein.

OVERVIEW
BACKGROUND:

Senate Bill 969, signed into law in September 2024 and effective January 1, 2025, amended California Business and Professions Code (BPC) Sections 23095.5, 23357, 23358, and 23396, and added Sections 25690, 25691, and 25692. This legislation expanded an open container entertainment zone program previously limited to San Francisco to all California cities, counties, and cities-and-counties. Any city may now enact a local ordinance creating an entertainment zone that authorizes consumption of alcoholic beverages on public streets, sidewalks, or public rights-of-way within the zone's boundaries.

LEGAL AUTHORITY:

The following statutes govern entertainment zone establishment and participation and should be reviewed in full by the City Attorney prior to ordinance drafting:
• BPC Section 23095.5 — Definitions
• BPC Section 23357 — License restrictions
• BPC Section 23358 — Consumption on public right-of-way • BPC Section 23396 — Operating conditions
• BPC Section 25690 — City authority to establish entertainment zones • BPC Section 25691 — Licensee participation requirements • BPC Section 25692 — Container and delivery restrictions WHAT AN ENTERTAINMENT ZONE ALLOWS:

An established entertainment zone permits patrons of participating licensed establishments to leave the premises with an open alcoholic beverage container and consume it on public streets, sidewalks, and rights-of-way within the zone. All standard ABC licensing regulations remain fully in effect. The zone adds an open-container privilege; it does not relax any other licensing standard. Additional restrictions include:
53

• Beverages may not be served in glass or metal containers when carried into the public zone. • Participating licensees with operating conditions restricting their hours must continue to comply with those conditions even within the zone.
• Delivery of alcoholic beverages to consumers within the zone is prohibited, except to a residential building or private business that is not a licensee.
• Licensees must notify the ABC of their intent to participate annually, at no charge, through the ABC's online Entertainment Zone Notification Tool.

ELIGIBLE LICENSE TYPES:

Only licensed establishments physically located within the zone's defined boundaries may participate. Eligible license types include beer manufacturers (e.g., Types 01, 23, 75), winegrowers (e.g., Type 02), and on-sale licensees (e.g., Types 41, 42, 47, 48 — restaurants, bars, and brewpubs). Licensees with questions about their eligibility should contact the local ABC office.

CITY OF REDDING MODEL:

The City of Redding (pop. ~95,000) established its Downtown Entertainment Zone under Redding Municipal Code (RMC) 6.42, becoming operational in December 2025 as the largest entertainment zone in California. The Redding model provides a directly applicable framework for Dunsmuir, scaled to a smaller downtown. Key features of the Redding program include:
• Hours: 10:00 a.m. to 10:00 p.m., 365 days per year, to minimize late-night disturbances. • Boundaries: A defined downtown core with visible signage posted at every zone intersection. • Container rules: Clear plastic cups, maximum 16 oz; no glass or metal. Each approved cup must display a blue 1" Entertainment Zone sticker.
• Patron tracking: Branded wristbands with business name and date, issued by each participating business to any 21+ patron exiting with a beverage.
• Infrastructure: Boundary signage and street decals at all zone entry/exit points; Big Belly solar trash compactors installed in the downtown core.
• Enforcement: Education-first philosophy; ABC enforcement action reserved for intentional or repeated violations.
• Reporting: Six-month report to City Council; biennial report to the California ABC (state-required).

While Dunsmuir is a much smaller community, the Redding framework is a proven, compliant model that can be readily adapted.
54

ESTABLISHMENT PROCESS
Establishing an entertainment zone requires completing the following steps. With Council direction provided at the next regular meeting, a Dunsmuir Entertainment Zone could realistically be operational by fall 2026.

Step 1: City Council Direction
The City Council must formally direct staff to develop an entertainment zone ordinance, typically via motion at a regular Council meeting. At this meeting, Council should provide direction on geographic boundaries, hours, and key operational rules; identify community stakeholders to be consulted; and authorize staff to proceed with ordinance drafting and community outreach.

Step 2: Law Enforcement Consultation
California law requires the city to notify local law enforcement and formally request feedback on proposed boundaries and operational hours before an ordinance may be enacted. Staff will meet with the Dunsmuir Police Department (or Siskiyou County Sheriff if services are contracted) to review the proposed zone and incorporate their feedback into the ordinance language and operational protocols.

Step 3: Stakeholder Outreach
Staff will engage downtown businesses and community members to build support, identify participating licensees, and gather input on zone design. This will include at least one public meeting or workshop with downtown business owners, identification of all ABC-licensed establishments within the proposed zone, and consultation with the Dunsmuir Business Association or equivalent organization.

Step 4: Ordinance Drafting
The City Attorney will draft a new municipal code chapter establishing the entertainment zone, following the framework of BPC Sections 25690-25692 and incorporating Council direction. The ordinance must: (a) define the zone's geographic boundaries with legal precision; (b) specify authorized hours; (c) specify permitted beverage types and container requirements; (d) include any additional local operational requirements; and (e) include provisions for biennial reporting to the ABC. City of Redding RMC 6.42 is a directly applicable reference model.

Step 5: Environmental Review (CEQA)
Staff will consult with the Planning Staff on applicable CEQA exemptions. An ordinance of this type is typically exempt as an organizational or administrative activity under CEQA Guidelines Section 15061(b)(3). A Notice of Exemption will be filed upon ordinance adoption.

Step 6: City Council Adoption
The completed ordinance will be presented to City Council for adoption through the standard two-reading process: first reading (introduction and public hearing), then second reading and adoption at the following regular meeting. The ordinance becomes effective 30 days after adoption unless urgency ordinance procedures are employed. Required legal publication notices will be prepared and published per Government Code requirements.

Step 7: ABC Notification Setup
Once the ordinance is adopted, staff will establish a system for participating licensees to notify the ABC annually using the Department's free online Entertainment Zone Notification Tool. Staff will prepare a business guide explaining the ABC notification process, create a City registration process to track participating businesses, and develop a webpage and brochure for business education.

Step 8: Infrastructure Implementation
Staff will install physical infrastructure to define zone boundaries and support operations, including: boundary signage at all zone entry and exit points; sidewalk/street decals marking the zone; additional public trash receptacles or waste stations; and business participation kits (stickers, signage templates, wristband guidance). 55

Step 9: Program Launch and Monitoring
Staff will launch the zone with a press release and public announcement, post zone information on the City website, and establish an ongoing monitoring and reporting program. This will include tracking participation and incident data, preparing a six-month report to City Council, and preparing the state-required biennial report to the California ABC.

CITY COUNCIL POLICY QUESTIONS
The following ten policy questions must be answered by the City Council to direct staff in drafting the ordinance.

Each question includes options and considerations drawn from the Redding model and ABC regulations. # Policy Question Options / Considerations
1 What geographic area should the zone encompass?
The zone boundaries must be precisely defined in the
ordinance and clearly marked on the ground. This is the single most consequential design decision.
• Downtown Dunsmuir core along Dunsmuir
Avenue between defined cross-streets
• A limited pilot block near the highest
concentration of licensees
• Note: all participating licensees must be
physically within the boundaries
2 What days and hours should the zone operate?
Redding operates 10 a.m.–10 p.m., 365 days a year.

Council may prefer a limited schedule for a pilot year. • Year-round, 10 a.m. – 10 p.m. (Redding
model)
• Seasonal (May – October) to align with
tourism peak
• Weekends and holidays only for a pilot
period
• Economic Development Committee
Recommends 11AM to 10PM
• Note: hours cannot exceed any participating
licensee's existing conditions
3 What container types will be permitted?
State law prohibits glass and metal. Council must specify the allowed container type(s) in the ordinance.
• Clear plastic cups only, maximum 16 oz
(Redding model)
• Clear plastic or compostable/eco-friendly
cups, maximum 16 oz
• White paper cups for hot beverages; clear
plastic for cold beverages
• City-branded uniform cup supplied to all
participating businesses
4 Will wristbands be required for patrons exiting with
beverages?
Redding requires each participating business to issue
branded wristbands (business name + date) to any
patron leaving with an open beverage.
• Yes — business-issued branded wristbands
(Redding model)
• Yes — uniform City-issued wristband for
simplicity
• No — rely on cup/sticker identification and
patron self-compliance
• Note: wristbands significantly improve
traceability for enforcement
5 What system will be used to mark approved
beverages?
• Business-supplied sticker or stamp on each
cup (Redding model)
56

# Policy Question Options / Considerations
Redding requires a blue 1" circle sticker on each
approved cup. A marking system helps distinguish zoneapproved beverages from outside alcohol. • City-supplied uniform sticker distributed to
participating businesses
• Pre-printed City-branded cups supplied to
businesses by the City
• No sticker requirement beyond cup type
compliance
6 What types of alcoholic beverages will be
permitted in the zone?
The ordinance must specify whether all alcohol types or only specific types may be consumed in the zone.
• All alcohol types permitted by each licensee's
ABC license
• Beer and wine only (lower liability, simpler
enforcement)
• Beer, wine, and spirits (maximizes
participation for full-service bars)
• Note: Dunsmuir's brewery and bar
community may favor broader allowance
7 What should the enforcement and violation policy
be?
Redding adopted an education-first approach with ABC
enforcement action reserved for intentional or repeated violations.
• Education-first: warnings before any formal
action (Redding model)
• Immediate ABC referral for any violation
• City-issued administrative fine authority in
addition to ABC referral
• Note: consider Dunsmuir Police capacity and
ABC enforcement timelines
8 Should special events be permitted to modify zone
rules?
Redding allows events that extend beyond zone hours via a special event permit, enabling pub crawls and similar activities.
• Yes — create a special event permit process
for zone modifications
• No — zone rules are uniform regardless of
event type
• Yes — but only for City-sponsored or City-cosponsored events • Note: consider Dunsmuir's seasonal events
(Railroad Days, etc.) as use cases
9 Will an annual participation fee be charged to
businesses?
The ABC notification is free. The City may charge a
nominal fee to offset administrative costs, though this may discourage participation.
• No fee — maximize participation incentives
• Nominal annual fee ($25–$75) to offset staff
time
• Tiered fee based on business size or license
type
• Note: given Dunsmuir's small business
market, a fee may not be advisable
10 What metrics will be used to evaluate zone
success?
State law requires a biennial report to the ABC. The
Council may also want a more frequent local review, as
Redding did with a 6-month check-in.
• 6-month and annual Council report
(participation count, incidents)
• Sales tax revenue comparison year-over-year
• Visitor/pedestrian count data at zone entry
points
• Combination of metrics for a comprehensive
annual picture
57

ESTIMATED IMPLEMENTATION BUDGET
The following budget covers all one-time and recurring costs associated with establishing and operating a Dunsmuir Downtown Entertainment Zone, modeled on the City of Redding program and scaled to Dunsmuir's smaller downtown footprint. Low estimates assume a minimal implementation (one or two block pilot zone, staffmanaged in-house). High estimates reflect a more robust first-year rollout with full-featured branding and infrastructure.

A. One-Time Setup Costs
Budget Item Low Estimate High Estimate
Legal & Ordinance Drafting
City Attorney and Contract Planner — ordinance drafting (est. 12– 20 hrs @ $350/hr)
$4,200 $7,000
Contract Planner — CEQA review and Notice of Exemption $350 $700 Legal publication costs (required by Government Code) $200 $400 SUBTOTAL: Legal & Ordinance $2,650 $4,600
Signage & Physical Boundary Infrastructure
Zone entry/exit boundary signs (est. 6–10 signs, fabrication & installation)
$3,000 $6,500
Sidewalk/street decals marking zone boundaries $800 $2,000 'You Are Entering / No Alcohol Beyond This Point' signs at intersections
$600 $1,200
Map signage (pole-mounted zone map at key entry points) $500 $1,500 SUBTOTAL: Signage & Boundary Infrastructure $4,900 $11,200 Waste Management Infrastructure
Additional public trash receptacles within zone (est. 2–4 units) $600 $2,000 Recycling/waste station setup and initial supply $200 $600 SUBTOTAL: Waste Management $800 $2,600
City Website & Digital Materials
Entertainment Zone webpage design and development $500 $2,500 GIS-based digital zone boundary map for website $300 $800 Business participation FAQ and guide document (design + printready PDF)$200 $600 SUBTOTAL: Website & Digital $1,000 $3,900
Business Participation Kits
Entertainment Zone cup stickers (bulk supply for Year 1) $150 $350 Business-facing informational brochures (design + 200 print) $300 $700 58

Budget Item Low Estimate High Estimate
Participating business window decals ('We Participate in the Entertainment Zone')
$200 $500
SUBTOTAL: Business Participation Kits $650 $1,550
Staff Time (One-Time Setup)
Community Development Director — project management (30–50 hrs)
$2,250 $3,750
Administrative staff — forms, ABC coordination, webpage content (20–30 hrs)
$900 $1,350
Public Works — signage coordination and installation oversight $600 $1,200 SUBTOTAL: Staff Time (Setup) $3,750 $6,300
Community Outreach
Stakeholder meeting(s) — space, materials, and staff time $300 $700 Press release and launch announcement materials $100 $300 SUBTOTAL: Community Outreach $400 $1,000
TOTAL ONE-TIME SETUP COSTS $14,150 $31,150
B. Annual Recurring Costs
Budget Item Low Estimate High Estimate
Ongoing Administration
Staff time — annual business re-registration and ABC notification assistance (8–16 hrs)
$600 $1,200
Staff time — monitoring, incident tracking, and reporting (10–20 hrs)
$750 $1,500
City Attorney — report review (est. 2–4 hrs/yr) $350 $700 SUBTOTAL: Administration $1,700 $3,400
Signage & Materials Maintenance
Sign maintenance, replacement, and cleaning (annual allowance) $300 $800 Business kit resupply — stickers, brochures for new/renewing participants
$150 $400
SUBTOTAL: Maintenance $450 $1,200
Reporting (State-Required and Local)
Biennial ABC report preparation (staff time and data collection) $500 $1,200 Six-month and annual Council report preparation $400 $800 SUBTOTAL: Reporting $900 $2,000
Contingency (enforcement response, legal, unforeseen) $500 $1,500 59

Budget Item Low Estimate High Estimate
TOTAL ANNUAL RECURRING COSTS $3,550 $8,100
C. Budget Summary
Budget Item Low Estimate High Estimate
One-Time Setup Costs (Year 1) $14,150 $31,150
Annual Recurring Costs (Year 1) $3,550 $8,100
TOTAL YEAR 1 INVESTMENT $17,700 $39,250
Ongoing Annual Cost (Year 2 and beyond) $3,550 $8,100

FISCAL IMPACTS
Budgeted Item? Yes | X No
Budget Adjustment Needed? X Yes | No If yes, amount of appropriation increase: $23,000.00 Affected fund(s): ☒ General Fund ☐ Water Fund ☐ Sewer Fund ☐ Other: ___________ Comments:

Year 1 implementation costs are estimated at $14,150 to $31,150 one-time and $3,550 to $8,100 annually. It is recommended budgeting at approximately $23,000 for Year 1, with appropriation from the General Fund or other fund identified by the Finance Director. These costs are not currently budgeted. Potential offsets include a nominal annual business participation fee (estimated $200–$500 annually at current Dunsmuir licensee counts) and state or regional economic development grant funding if identified. The City of Redding spent approximately $5,000 on signage for a single temporary entertainment zone event, providing a benchmark for Dunsmuir's larger infrastructure investment. Participating businesses bear their own costs for wristbands, cups, and stickers.

LEGAL REVIEW
The City Attorney will collaborate with a Contract Planning staff memberin preparing the ordinance and all related business guides, application forms, and reporting templates. Prior to ordinance introduction, the City Attorney will review the proposed boundaries, hours, and operational requirements for compliance with BPC Sections 25690-25692 and any applicable provisions of the Dunsmuir Municipal Code. Licensees participating in the zone remain solely responsible for understanding the privileges and restrictions applicable to their ABC license type and any operating conditions. Any violations associated with a licensee's participation may subject the licensee to ABC disciplinary action.
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CONCLUSIONS/RECOMMENDATIONS
It is recommended that the City Council take the following actions:

1. Direct staff to proceed with the development of an Entertainment Zone ordinance for the City of Dunsmuir downtown core, consistent with California Business and Professions Code Sections 25690-25692.

2. Provide direction to staff on the ten policy questions identified in this report, with particular emphasis on zone boundaries, operating hours, container requirements, and the patron wristband and identification system.

3. Direct the City Attorney to draft an ordinance consistent with Council direction, using City of Redding Municipal Code Chapter 6.42 as a reference model, for introduction at the next regular Council meeting.

4. Direct staff to initiate law enforcement consultation with the Siskiyou County Sherif’s Office and to conduct a Planning Commission meeting to solicit initial input on the Entertainment Zone area, hours, and regulation, and hold at least one stakeholder outreach meeting with downtown business owners prior to the ordinance's reading at the Planning Commission.

5. Direct the Finance Director to identify an appropriate funding source for Year 1 implementation, estimated at $17,700 to $39,250, and bring a budget appropriation to Council concurrent with or immediately following ordinance adoption.
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