Agenda packet — Mount Shasta City Council, February 12, 2024

“Our mission is to maintain the character of our “small town” community while striking an appropriate balance between economic development and preservation of our quality of life. We help create a dynamic and vital City by providing quality, cost-effective municipalservices and by forming partnerships with residents and organizations in the constant pursuit of excellence.”
Page Item STANDING AGENDA ITEMS

1. Call to Order and Flag Salute

2. Roll call

3. Special Presentation:

4. Public Comment:

This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an agenda item noted on the regular agenda, please address the Council when that item is open for public comment.

Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. If you have documents to present to members of Council, please provide a minimum of seven (7) copies to the Deputy City Clerk. Email Comments may be submitted to the City Clerk’s Office ([email protected]). Items received no later than 12:00 pm on the day of the meeting will be provided to the City Council prior to the meeting. These items will NOT be read into the record.

5. Council and Staff Comments

6. Committee Updates:
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee
Mt. Shasta City Council Regular Meeting Agenda
Monday, February 12, 2024, 5:30 p.m.

This meeting will be presented in a hybrid format and can be attended in two ways:

In-Person at the Mt. Shasta City Park Upper Lodge, 1315 Nixon Rd. Mt. Shasta, CA OR
Online at the following link:

MountShasta.22Ave.tv
For the safety of our staff, the council, and public, we are no longer allowing members of the audience to carry large bags, backpacks, or other items outside of small personal items such as purses or satchels. Only service animals are allowed inside council chambers; nonservice pets are not allowed under any circumstances. Violators will be asked to remove the bag and/or animal, and refusal to do so will be cause for removal from the meeting.

Mt. Shasta City Council Regular Meeting February 12, 2024 1 Mt. Shasta Regular City Council Meeting Agenda
Monday, February 12, 2023

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CITY COUNCIL BUSINESS

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All Resolutions and Ordinances on this agenda, or added hereto, shall be introduced or adopted, as applicable, by title only, and the full reading thereof is hereby waived. a. Approval of Minutes: January 8 and 22, 2023 Regular Meetings, January 22, 2023 Special Meeting
b. Approval of Disbursements: Accounts Payable: 1/24 and 1/30/2024 ; Total Gross Payroll and Taxes: For Period Ending 1/21/2024
c. Police Department Report: January 2024
d. Second Reading and Adoption of Ordinance CCO-24-XX, Amending Municipal Code Chapter 7.60.010: Designation of very high fire hazard severity zones. e. Second Reading and Adoption of Ordinance CCO-24-XX City Council Compensation f. Annual Military Equipment Use Report 2023

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Proposed Drainage Assessment
Background: The City of Mt Shasta currently charges property owners a flat fee of $1.00 per month to help pay for the replacement of failing drainage infrastructure, an amount that is woefully inadequate.

To determine a fair rate for property owners to pay that will allow the City to start funding the replacement of failing infrastructure, the City contracted with a company titled Raftellis to perform a study employing specific methodology that assesses the percentage of impervious surface per eligible parcel within the City’s boundaries. The City Council will review the rate study and vote whether to approve its findings. Council will also discuss and approve the Notice of Public Hearing and ballot to be mailed to property owners.

Report By: Todd Juhasz, City Manager
Recommended Council Action: Staff recommends the following:

Approve the revised Stormwater Drainage Impact Fee Report; 2) Direct staff to mail a notice of public hearing which requires a 45-day public comment period.

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assessment
Background: at the January 8th Council Meeting, it was agreed that the City would seek to purchase the structure located at 402 N. Mt Shasta Blvd as well as the two unpaved parcels located at the rear of the building. After talking to the owner, he may have a potential long-term lessee for the structure. While the owner determines whether the lease option for the structure is viable, he has offered to lease the two unpaved APNs at the rear of the structure for six months. During this period, the City will have the property appraised and will perform environmental due diligence on the unpaved lots. The owner has agreed to lease these two lots for $900 a month for the six-month period.

Report By: Todd Juhasz, City Manager
Recommended Council Action: The City Manager recommends paying the outstanding lease for two APNs while the City performs environmental due diligence on the two properties for six months. The purpose is to see if the properties are worth purchasing at an appraised value to meet City planning/redevelopment goals.

Mt. Shasta City Council Regular Meeting February 12, 2024 2 4-48
49-75
76-81
Mt. Shasta Regular City Council Meeting Agenda
Monday, February 12, 2024

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CITY COUNCIL/STAFF REPORTING PERIOD

10. Reports Re: Outside Meetings: None

11. Future Agenda Items and Meetings (Appearing on the agenda within 60-90 days):
a. Memorandum of Understanding Between the City and the Friends of the Library for Library Operations – TBD
b. Removal of Snow and Clearing Sidewalks Within the Downtown Parking District - TBD c. Fiscal year 24/25 budget projection – TBD
d. Expansion of Enhanced Infrastructure Financing District boundaries – TBD e. Discussion and Possible Action: City Manager Salary – TBD f. Approval of Funds to Complete a Survey of Washington Avenue – TBD g. Amendment of Parklet Ordinance – TBD
h. Discussion and Possible Action: Downtown Enhancement Advisory Committee Fiscal Review and Project Approval - TBD
i. Discussion and Possible Action: Beautification Committee Fiscal Review and Project Approval – TBD
j. Amendment to the Municipal Code: Camping Ordinance - TBD Future Agenda Items Over 90 Days:

k. Discussion and Possible Action: Review of Chapter 13.95 Extraction and Exportation of Groundwater from the City of Mt. Shasta
l. Objective Design Standards Presentation/Discussion

12. Adjourn
I, Kathryn Joyce, declare under penalty of perjury that this agenda has been posted at least 72 hours in advance at the Mt.

Shasta City Hall, 305 N. Mt. Shasta Blvd, Mt. Shasta, CA, in the glass case and on the City website at www.mtshastaca.gov.

Agendas and packets shall be made available at least 72 hours in advance of regular meetings and 24 hours in advance of special meetings on the City’s web site. Any writings or documents pertaining to an open session item provided to a majority of the City Council less than 72 hours prior to the meeting shall be made available on the City’s web site www.mtshastaca.gov.

Availability of Public Records: All public records related to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at City Hall located at 305 North Mt. Shasta Blvd.

The City of Mt. Shasta does not discriminate on the basis of race, color, national origin, sex, religion, age or disability in employment or provision of services. In compliance with the Americans with Disabilities Act, if you need special assistance, a disability-related modification or accommodation, agenda materials in an alternative format, or auxiliary aids to participate in this meeting, please contact the Office of the City Clerk at 530-326-7516 or [email protected] as soon as possible.

Providing at least 72 hours’ notice will help ensure that reasonable arrangements can be made.

Mt. Shasta City Council Regular Meeting February 12, 2024 3 Mt. Shasta City Council Regular Meeting DRAFT Minutes
Monday, January 8, 2024; 5:30 p.m.

City Park Upper Lodge 1315 Nixon Road, Mt. Shasta
Meeting allowed for virtual attendance via ZOOM
“Our mission is to maintain the character of our “small town” community while striking an appropriate balance between economic development and preservation of our quality of life. We help create a dynamic and vital City by providing quality, cost-effective municipal services and by forming partnerships with residents and organizations in the constant pursuit of excellence.”

STANDING AGENDA ITEMS

1. Call to Order and Flag Salute: At the hour of 5:30 p.m. Mayor Stackfleth called the meeting to order and led the audience in the flag salute.

2. Roll Call:

Council Members Present: Stackfleth, Collings, Stearns, Clure Council Members Absent: Redmond

3. Special Presentations: None

4. Public Comment: No public comment.

5. Council and Staff Comments:

Todd Juhasz, City Manager – Comments regarding the Friends of the Library contract, update on the 218 process, review of work to acquire a well, comments regarding the fire at the old hospital, comments regarding the officer involved shooting, work progress toward The Landing development.

Muriel Terrell, Finance Director – Comments regarding December budget numbers, working on the mid-year budget.

Tessa Clure, Councilmember – Thanks to the Fire Department for their work on the recent structure fire.

John Stackfleth, Mayor – Comments regarding the officer involved shooting.

Robert Gibson, Chief of Police – Comments regarding officer involved shooting.

John Stackfleth, Mayor – Comments regarding upcoming meeting, committee assignments.

6. Committee Updates: No Committee Updates
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee

CITY COUNCIL BUSINESS
Mt. Shasta City Council Regular Meeting February 12, 2024 4 City of Mt. Shasta Regular City Council Meeting Minutes Monday, January 8, 2024

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7. Consent Agenda:

COUNCIL ACTION: Approved the following Consent Agenda items. All Resolutions and Ordinances on this agenda, or added hereto, shall be introduced or adopted, as applicable, by title only, and the full reading thereof is hereby waived.
a. Approval of Minutes: December 11, 2023 Regular Meeting b. Approval of Disbursements: Accounts Payable: 12/7, 12/11, 12/13, and 12/19/2023; Total Gross Payroll and Taxes: For Periods Ending 11/26, 12/10, and 12/24/2023 c. Second Reading and Adoption of Ordinance CCO-24-01 Amending Municipal Code Section

10.44.070 (D)
d. Siskiyou County Local Transportation Commission Local Transportation Fund Transportation Claim: Resolution CCR-24-01
e. Police Department Report December 2023
MOTION TO APPROVE: Clure
SECOND: Collings
AYES: Stackfleth, Collings, Stearns, Clure
NOES: None
ABSENT: Redmond
ABSTAIN: None

8. Discussion and Possible Action: Enhanced Infrastructure Financing District (EIFD) Update Todd Juhasz, City Manager – Review of the Board of Supervisors meeting, vote against participating in an EIFD with the City. Review of why and EIFD is beneficial, review of options moving forward.

Clarifying questions from Council.

Laurel Harkness – Comments regarding the proposed EIFD, The Landing, and grant funding. Comments regarding revenue bonds, debt financing and management policy.

Council discussion.

COUNCIL ACTION: Approve reinstating the City’s interest in moving forward with the EIFD process as demonstrated by the City Manager.

MOTION: Clure
SECOND: Stearns
AYES: Stackfleth, Clure, Stearns
NOES: Collings
ABSENT: Redmond
ABSTAIN: None

9. First Reading of Ordinance CCO-24-XX, City Council Compensation Todd Juhasz, City Manager – Review of item, legislation allowing for increased compensation amount.

Glenn Kauffman – Comments regarding the City Council’s protocols, time requirements for being a Council Member.

Council discussion.

COUNCIL ACTION: Approve the first reading of the proposed Ordinance, an amendment to Municipal Code Chapter 2.22.010, City Council Compensation, by title only, and moving it to a second reading.

MOTION: Stearns
SECOND: Clure
AYES: Stackfleth, Clure, Stearns
NOES: Collings
ABSENT: Redmond
ABSTAIN: None
Mt. Shasta City Council Regular Meeting February 12, 2024 5 City of Mt. Shasta Regular City Council Meeting Minutes Monday, January 8, 2024

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Recess: 6:25 p.m. – 6:31 p.m.

10. Public Hearing: Recommended Findings of California Environmental Quality Act (CEQA) Exemption and Adoption of 2023-2031 Housing Element Update
Jeff Mitchem, Planning Director – Review of staff report, Housing Element update, future Municipal Code amendments, work completed by the Planning Commission. Review of City’s response to comments and Housing Element revision summary.

Clarifying questions and comments from Council.

Public Hearing Open: 6:46 p.m.

Patricia – Comments regarding real estate investors and rent increases, concern about elder abuse.

Glenn Kauffman – Comments regarding City Council protocols and ethics, expressed concern about the preservation of the character of the City.

Beverly Harlan – Comments regarding CEQA, objective design standards, design authority and review.

Peggy Risch – Comments expressing opposition to ministerial review and decisions made by the Planning Department. Comments in support of the development of design standards.

Vicki Gold – Comments regarding CEQA, in support of postponing the item.

Lisa Diane – Comments agreeing with other commentors.

Public Hearing Closed: 7:05 p.m.

Council discussion.

COUNCIL ACTION: Adopt Resolution CCR-24-02 approving:

Environmental Review: Finding that the 2023-31 Housing Element update is exempt from the CEQA pursuant to CEQA Guidelines Section 15061(b)(3) as Housing Element adoption will not have a significant effect on the environment.

Housing Element Update: Adoption of the proposed update to the Housing Element of the City’s General Plan with findings that it substantially complies with State Housing Element Law and submit to HCD for certification.

MOTION: Clure
SECOND: Stearns
AYES: Stackfleth, Clure, Collings, Stearns
NOES: None
ABSENT: Redmond
ABSTAIN: None

11. Discussion and Possible Action: Ballot Measures to Set Term Limits for Council Members, and to Increase City Council Compensation
Todd Juhasz, City Manager – Review of report.

Clarifying questions from Council.

Peggy Risch – Comments regarding ballot measures, questions about upcoming Council term expirations.

Roslyn McCoy – Questions about term limits.

Council discussion, decision to continue the item indefinitely.

COUNCIL ACTION: No action taken.

Recess: 7:45 p.m. – 7:50 p.m.

12. Discussion and Possible Action: Temporary Acquisition of Three Properties for the Purpose of Performing an Environmental Assessment
Todd Juhasz, City Manager – Review of item, ad hoc committee discussions. Review of vacant parcels, options for possible acquisition.

Clarifying questions from Council.

Mt. Shasta City Council Regular Meeting February 12, 2024 6 City of Mt. Shasta Regular City Council Meeting Minutes Monday, January 8, 2024

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Tom Hesseldenz – Review of project information, need to mitigate potential parking issues if project moves forward. Comments regarding lease to allow time to have environmental study and appraisal done. Review of process moving forward.

Council discussion.

COUNCIL ACTION: Authorize staff to engage with other parties for the purpose of leasing three lots set forth on page 202 of the agenda packet, at a rate of $2,250 per month, and with the further possibility of obtaining the option to purchase the properties and to encourage staff to act forthwith.

MOTION: Stearns
SECOND: Clure
AYES: Stackfleth, Clure, Collings, Stearns
NOES: None
ABSENT: Redmond
ABSTAIN: None

13. Reports on Outside Meetings: None

14. Future Agenda Items (Appearing on the agenda within 60-90 days):

COUNCIL ACTION: Reviewed items a through r.
a. Special City Council Goal-Setting Workshop – 1/10/2024 b. Special Meeting to Appoint Planning Commissioners – 1/22/2024 c. Mid-Year Budget Review – 1/22/2024
d. Snowplowing Operations/Creation of a District – 1/22/2024 e. Sidewalk Snow Removal Fees in the Downtown District – 1/22/2024 f. Annual Military Equipment Use Report – 1/22/2024
g. Wildfire Prevention Messaging – 1/22/2024
h. Discussion and Possible Action: City Manager Salary – TBD i. Stormwater Drainage Prop 218 Process - TBD
j. Discussion and Possible Action: Hazard Trees/Hazardous Vegetation Policy - TBD k. Memorandum of Understanding Between the City and the Friends of the Library for Library Operations – TBD
l. Discussion and Possible Action regarding the Active Transportation Committee – TBD m. Approval of Funds to Complete a Survey of Washington Avenue – TBD n. Amendment of Parklet Ordinance – TBD
o. Discussion and Possible Action: Downtown Enhancement Advisory Committee Fiscal Review and Project Approval - TBD
p. Discussion and Possible Action: Beautification Committee Fiscal Review and Project Approval - TBD Future Agenda Items Over 90 Days:
q. Amendment to the Municipal Code: Camping Ordinance - TBD r. Discussion and Possible Action: Review of Chapter 13.95 Extraction and Exportation of Groundwater from the City of Mt. Shasta

15. Adjourn: There being no further business, the meeting was adjourned at 8:13 p.m.

Respectfully Submitted By: Kathryn M. Joyce, Administrative Assistant/Deputy City Clerk Mt. Shasta City Council Regular Meeting February 12, 2024 7 Mt. Shasta City Council Special Meeting DRAFT Minutes
January 22, 2024, 5:00 p.m.

City Park Upper Lodge 1315 Nixon Road, Mt. Shasta
Meeting allowed for virtual attendance via ZOOM
Our mission is to maintain the character of our “small town” community while striking an appropriate balance between economic development and preservation of our quality of life. We help create a dynamic and vital City by providing quality, cost-effective municipal services and by forming partnerships with residents and organizations in the constant pursuit of excellence.”

STANDING AGENDA ITEMS

1. Call to Order and Roll Call: At the hour of 5:00 p.m. Mayor John Stackfleth called the meeting to order.

Council Members Present: Redmond, Stackfleth, Collings
Council Members Absent: Clure, Stearns

2. Interview of Applicants and Possible Appointment of Two Planning Commissioners a. Belinda Higuera
b. Von Boyenger
Mayor Stackfleth introduced the applicants; Council thanked them for their current and ongoing service.

COUNCIL ACTION: Appoint Belinda Higuera and Von Boyenger to the Planning Commission MOTION: Redmond
SECOND: Collings
AYES: Redmond, Stackfleth, Collings
NAYS: None
ABSENT: Clure, Stearns
ABSTAIN: None

3. Interview of Applicants and Possible Appointment of Three Library Tax Advisory Committee Member a. Ellie Mauro
b. Ted Marconi
c. Dean Whetstine
Council thanked the applicants for their current and ongoing service.

COUNCIL ACTION: Appoint Ellie Mauro, Ted Marconi, and Dean Whetstine to the Library Tax Advisory Committee
MOTION: Redmond
SECOND: Collings
AYES: Redmond, Stackfleth, Collings
NAYS: None
ABSENT: Clure
ABSTAIN: None

4. Adjourn: There being no further business, the meeting was adjourned at 5:04 p.m.

Respectfully Submitted by: Kathryn M. Joyce, CMC Administrative Assistant/Deputy City Clerk Mt. Shasta City Council Regular Meeting February 12, 2024 8 Mt. Shasta City Council Regular Meeting DRAFT Minutes
Monday, January 22, 2024; 5:30 p.m.

STANDING AGENDA ITEMS

1. Call to Order and Flag Salute: At the hour of 5:30 p.m. Mayor Stackfleth called the meeting to order and led the audience in the flag salute.

2. Roll Call:

Council Members Present: Stackfleth, Collings, Redmond
Council Members Absent: Stearns, Clure

3. Special Presentation: Tom Hesseldenz - Draft proposal for N. Mt Shasta Boulevard/Chestnut One- Ways and the daylighting of Castle Creek
Tom Hesseldenz gave an overview of a draft proposal including a potential greenway, parking changes, one-way couplet, and bikeways.

Clarifying questions from Council.

4. Public Comment:

Ken Brummel-Smith – Comments regarding the greenway proposal, in support of project. Suggested collaboration with Rotary.

5. Council and Staff Comments:

Todd Juhasz, City Manager – Update on negotiations with One Shasta LLC regarding well site agreement.

Comments regarding lease agreement approved during the last City Council meeting; still working towards an agreement. Comments regarding Kosmont meeting regarding tax increment finance. Update on Friends of the Library Memorandum of Understanding.

Robert Gibson, Chief of Police – Task force officer update, review of concluded cases.

John Stackfleth, Mayor – Concern about erosion in the Upton Heights area, mud along Everitt Memorial Highway.

Todd Juhasz, City Manager – Comments regarding the Upton Heights homeowner’s association and possible litigation involving the County.

Ken Kellogg, Public Works Director – Comments regarding the mudflow above Upton Heights and claim filed with the Office of Emergency Services and the Federal Emergency Management Agency for financial assistance.

Overview of repair and maintenance needed to retention ponds and stormwater system.

Clarifying questions from Council.

Mt. Shasta City Council Regular Meeting February 12, 2024 9 City of Mt. Shasta Regular City Council Meeting Minutes Monday, January 22, 2024

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6. Committee Updates: No Committee Updates
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee

CITY COUNCIL BUSINESS

7. Consent Agenda:

For Period Ending 1/7/2024
c. Monthly Investment Report
d. Second Reading and Adoption of Ordinance CCO-24-XX City Council Compensation COUNCIL ACTION: Approve items a-c, continue item d to the next City Council meeting.

MOTION TO APPROVE: Redmond
SECOND: Collings
AYES: Stackfleth, Collings, Redmond
NOES: None
ABSENT: Stearns, Clure
ABSTAIN: None

8. Siskiyou Economic Development Council (SEDC) Memorandum of Understanding (MOU) Todd Juhasz, City Manager – Review of existing MOU with SEDC, proposed new MOU with changes.

Tonya Dowse, SEDC – Comments regarding SEDC activities, future opportunities.

No public comment.

Council discussion.

COUNCIL ACTION: Approve MOU between the SEDC and the City of Mt. Shasta for the period of July 1, 2024 through June 30, 2029
MOTION: Stackfleth
SECOND: Collings
AYES: Stackfleth, Redmond, Collings
NOES: None
ABSENT: Clure, Stearns
ABSTAIN: None
Recess: 6:40 p.m. – 6:44 p.m.

Mt. Shasta City Council Regular Meeting February 12, 2024 10 City of Mt. Shasta Regular City Council Meeting Minutes Monday, January 22, 2024

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9. 2023-2024 Mid-Year Budget Review
Muriel Terrell, Finance Director – Review of mid-year budget, clarification of report. Review of expenses, projected loss, contingency. Review of various funds and projects.

Clarifying questions from Council.

Patricia Krogan – Comments regarding hostels and potholes.

Council discussion.

COUNCIL ACTION: Adopt CCR-23-03, a resolution of the City of Mt. Shasta adopting a revised operating budget for fiscal year 2023-2024
MOTION: Redmond
SECOND: Collings
AYES: Stackfleth, Redmond, Collings
NOES: None
ABSENT: Clure, Stearns
ABSTAIN: None

10. First Reading of Ordinance CCO-24-XX, Amending Municipal Code Chapter 7.60.010: Designation of Very High Fire Hazard Severity Zones.

Robert Gibson, Chief of Police – Review of proposed ordinance amendment, current ordinance language versus proposed.

Patricia Krogan – Comment regarding camping.

COUNCIL ACTION: Approve the first reading of the ordinance amending municipal code chapter 7.6.010, by title only, and move it to a second reading and adoption.

MOTION: Redmond
SECOND: Collings
AYES: Stackfleth, Redmond, Collings
NOES: None
ABSENT: Clure, Stearns
ABSTAIN: None

11. Discussion and Possible Action: Cost for Removal of Snow and Clearing Sidewalks Within the Downtown Parking District
Ken Kellogg, Public Works Director – Review of annual fee in downtown district for snow removal, review of actual snow removal costs. Reviewed various options and calculations to determine fees for businesses.

Clarifying questions from Council.

Patricia Krogan – Comments regarding snow removal.

Johanna Altorfer – Comments regarding snow removal rates.

Council questions and discussion.

COUNCIL ACTION: Staff directed to bring back a plan and resolution for Council approval in which businesses are billed for actual costs on a square-footage basis.

12. Discussion and Possible Action: Wildfire Prevention Messaging Todd Juhasz, City Manager – Review of report, previous presentation, request for wildfire prevention messaging.

Review of City’s website and social media. Comments about communications with Pacific Power regarding tree removal near powerlines.

Clarifying questions from Council.

Patricia Kroger – Comments regarding signage.

COUNCIL ACTION: No action taken.

13. Reports on Outside Meetings: None
Mt. Shasta City Council Regular Meeting February 12, 2024 11 City of Mt. Shasta Regular City Council Meeting Minutes Monday, January 22, 2024

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14. Future Agenda Items (Appearing on the agenda within 60-90 days):

COUNCIL ACTION: Reviewed items a through m. Items added: Fiscal year 24/25 budget projection, expansion of Enhanced Infrastructure Financing District boundaries. a. Annual Military Equipment Use Report – 2/12/2024
b. Discussion and Possible Action: City Manager Salary – TBD c. Stormwater Drainage Prop 218 Process - TBD
d. Discussion and Possible Action: Hazard Trees/Hazardous Vegetation Policy - TBD e. Memorandum of Understanding Between the City and the Friends of the Library for Library Operations – TBD
f. Discussion and Possible Action regarding the Active Transportation Committee – TBD g. Approval of Funds to Complete a Survey of Washington Avenue – TBD h. Amendment of Parklet Ordinance – TBD
i. Discussion and Possible Action: Downtown Enhancement Advisory Committee Fiscal Review and Project Approval - TBD
j. Discussion and Possible Action: Beautification Committee Fiscal Review and Project Approval - TBD Future Agenda Items Over 90 Days:

k. Amendment to the Municipal Code: Camping Ordinance - TBD l. Discussion and Possible Action: Review of Chapter 13.95 Extraction and Exportation of Groundwater from the City of Mt. Shasta
m. Objective Design Standards Presentation/Discussion

15. Adjourn: There being no further business, the meeting was adjourned at 8:18 p.m.

Respectfully Submitted By: Kathryn M. Joyce, Administrative Assistant/Deputy City Clerk Mt. Shasta City Council Regular Meeting February 12, 2024 12 City Council Agenda Item #7b
Staff Report
Meeting Date: February 12, 2024
To: Mayor and City Council
From: Muriel Howarth Terrell, Finance Director
Subject: Approval of Warrants and Payroll
Recommendation:

Staff requests the Mayor and City Council Approve warrants paid including payroll benefits and withholding, and payroll distribution, in the amount of $643,534.59 Background & Summary:

Approval of Check Numbers 51846-51930 $ 489,592.27
Total Payroll Distribution $ 87,679.35
Total EFTPS – CalPERS, Nationwide $ 26,849.70
Total Payroll EFTPS Taxes $ 39,413.27
$ 643,534.59
Financial Impact:

Expenditures are consistent with the Budget that the City Council has adopted.

Attachments:

1.) Check Registers – 1/24/24, 1/30/24

2.) ACH Payroll Distribution – 1/25/24

3.) EFTPS Reports – 1/25/24
Regular
x Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting February 12, 2024 13 Mt. Shasta City Council Regular Meeting February 12, 2024 14 Mt. Shasta City Council Regular Meeting February 12, 2024 15 Mt. Shasta City Council Regular Meeting February 12, 2024 16 Mt. Shasta City Council Regular Meeting February 12, 2024 17 Mt. Shasta City Council Regular Meeting February 12, 2024 18 Mt. Shasta City Council Regular Meeting February 12, 2024 19 Mt. Shasta City Council Regular Meeting February 12, 2024 20 Mt. Shasta City Council Regular Meeting February 12, 2024 21 Department Statistics
Calls for Service January 2023 January 2024 Change
667 721 +8.09%
Cases Taken January 2023 January 2024 Change
36 34 -26.41%
Arrests Made January 2023 January 2024 Change
15 19 +26.66%
667 707
548
678 688 779 752 730 740
851
745 669 721
0 200
400
600
800
1000
Calls for Service
Calls for Service
53 51
37 43 43
51 51 48 45 48 46
34 39
0 20
40 60
Cases Taken
Cases Taken
15 24
10 19 13
44 23 22 20 20 20
13 19
0 10
20 30
40 50
Arrests Made
Arrests Made
Mt. Shasta City Council Regular Meeting February 12, 2024 22 Warrant Arrests January 2023 January 2024 Change
4 6 +50%
Top 5 Calls
January 2023 January 2024
Out w/a Vehicle 25 Outside Assist 41
Public Assist 17 Public Assist 22
Alarm 16 Medical 20
Medical 16 Trespassing 17
Out w/a Person 14 Suspicious Circumstances 16
4 4
2 6
3 4
0 6
1 8
4 4
6 0
2 4
6 8
10 Warrant Arrests
Warrant Arrests
0 5 10 15 20 25 30 35
1/1/2023
2/1/2023
3/1/2023
4/1/2023
5/1/2023
6/1/2023
7/1/2023
8/1/2023
9/1/2023
10/1/2023
11/1/2023
12/1/2023
1/1/2024
Yearly Top 5 Calls January 2023-2024
Column1 Animal Complaint Disturbing the Peace
Suspicious Circumstances Suspicious Vehicle Suspicious Person Mt. Shasta City Council Regular Meeting February 12, 2024 23 Crime Statistics
Crimes
January
2023
January
2024 Change January 2023- January2024 Yearly Total
Assault – Physical 5 2 -60% 45
Assault – Verbal 0 0 0 2
Disturbing the Peace 7 13 +85.71% 185
Domestic Disturbance 1 0 -100% 7
Domestic Violence 1 0 -100% 14
Fraud 2 1 -50% 13
Public Intoxication 2 1 -50% 36
Stolen Vehicle 2 2 0 12
TC Hit & Run 3 1 -66.66% 19
Theft from Vehicle 0 0 0 3
Theft – Grand 1 0 -100% 5
Theft – Petty 0 3 +300% 54
Theft – Shoplifting 0 0 0 0
Trespassing 10 17 70% 230
Vandalism 1 2 +100% 46
5 2
4 2 1
6 5 6 6
2 1
3 2
0 5
10 Assault - Physical
Assault - Physical
0 0 0 0 0 0
1 0 0
1 0 0 0 0

0.5 1

1.5 Assault - Verbal
Assault - Verbal
7 13 12 12 11
32 14 19
12 16 19
5 13
0 20
40 Disturbing the Peace
Disturbing the Peace
Mt. Shasta City Council Regular Meeting February 12, 2024 24 1 0 0
1 0
2 0
2 1
0 0 0 0 0
1 2
3 Domestic Disturbance
Domestic Disturbance
1 2
0 1
0 2
5 0 0 0
2 1 0 0
2 4
6 Domestic Violence
Domestic Violence
2 0
1 0 0
1 1
2 1
4 0 0
1 0
2 4
6 Fraud
Fraud
2 6
3 2 1 2
8 2
4 2 1 2 1 0
5 10
Public Intoxication
Public Intoxication
2 0 0
2 0
3 0 0
2 0 0
1 2
0 2
4 Stolen Vehicles
Stolen Vehicles
Mt. Shasta City Council Regular Meeting February 12, 2024 25 3 2
1 0
3 1
2 0 0
1 2
3 1
0 2
4 Traffic Collisions - Hit & Run
Traffic Collisions - Hit & Run
0 0 0 0 0 0 0 0 0
2 0
1 0 0
1 2
3 Theft from Vehicle
Theft from Vehicle
1 0
1 1 1
0 1
0 0 0 0 0 0 0

0.5 1

1.5 Theft - Grand
Theft - Grand
2 3
1 1
6 7 8
5 6
1 7
4 3
0 5
10 Theft - Petty
Theft - Petty
0 0 0 0 0 0 0 0 0 0 0 0 0 0

0.5 1
Theft - Shoplifting
Theft - Shoplifting
Mt. Shasta City Council Regular Meeting February 12, 2024 26 Traffic Summary
January 2023 January 2024 Change
Traffic Stops 97 99 -2.06%
Traffic Citations Issued 8 8 0%
10 6 9 14
6 21
34 28 30
19 17 19 17
0 20
40 Trespassing
Trespassing
1 3 3 2
4 4 5 4
6 5 5
2 2
0 5
10 Vandalism
Vandalism
97 128
62 114
61 58 61
77 65
97 101 99 99
8 15 4 12 7 9 4 6 13 5 11 8 8 0
20 40
60 80
100
120
140
Traffic Stops
11-95 Traffic Citations Issued
Mt. Shasta City Council Regular Meeting February 12, 2024 27 Traffic Collisions
January
2023
January
2024
Change January 2023-
January 2024 Yearly
Total
TC – DUI 0 0 0% 1
TC – Hit & Run 5 1 -80% 21
TC – Info Exchange 2 4 +100% 66
TC - Injury 0 1 +100% 9
Total 7 6 -14.28% 97
Traffic Accident Location Summary
1/05/2024 201 Orem St- Traffic Collision Hit & Run, No Injuries 1/09/2024 1020 Kingston Rd- Traffic Collision Information Exchange, No Injuries 1/10/2024 304 Maple St- Traffic Collision Information Exchange, No Injuries 1/11/2024 I-5 & Abrams Lake Rd- Traffic Collision Information Exchange, Transferred to CHP 1/22/2024 512 Chestnut St- Traffic Collision Information Exchange, No Injuries 1/17/2024 Pine St & W Ivy St- Traffic Collision with one injury, DUI Summary
January 2023 January 2024 Change
DUI Complaints NA NA NA
DUI Arrests 7 0 -100%
* DUI Complaints no longer tracked in new CAD system as of 11/01/2022. 0 0 0 0
1 0 0 0 0 0 0 0
5 2
1 0
3 1
2 0 0
1 2
3 2
9 9
2 4
5 7
6 7
8 0
3 0 0 0
1 0
2 1
2 1 1
0 0 0
1 2
3 4
5 6
7 8
9 10
Traffic Collisions
TC - DUI Hit & Run TC - Info Exchange TC - Injury
Mt. Shasta City Council Regular Meeting February 12, 2024 28 Patrol Information
Foot Patrol
January 2023 January 2024 Change January 2023-January 2024 Yearly Total
33 27 -18.18% 326
Frequent foot patrol areas include:
• City Park
• Shastice Park
• Downtown Mount Shasta
• Roseburg Property
• Behind commercial business
such as Ray’s Food Place, the
Cinema, and Rite Aid
• Dense brush areas in multiple
residential areas.
7 5
2 2
0 2
4 4 4
5 3
4 0 0
2 4
6 8
DUI Summary
DUI Complaints DUI Arrests
33 42
30 30
42 26 29
6 28
18 20 22 27
0 20
40 60
Foot Patrol
Foot Patrol
Mt. Shasta City Council Regular Meeting February 12, 2024 29 Municipal Summary
Municipal Calls for Service
January 2023 January 2024
January 2023-
January 2024 Yearly
Total
Muni Code – Other 3 4 77
Muni Code - Parking 0 5 103
Total 3 9 180
LiveScans January 2023 January 2024
17 11
Court Activity
3 8
4 4 5 7
11 11
2 10
6 2 4
0 4 4 2
10 19
7 10
27 7 5 3 5
0 5
10 15
20 25
30 Municipal Calls for Service
Muni Code - Other Muni Code - Parking
2 1 3 2 2 2 4 2 3
8 2 2 4
0 10
Court Activity
Court Activity
Mt. Shasta City Council Regular Meeting February 12, 2024 30 Social Media
Facebook
Followers Posts Reach Engaged Users Reactions
11,977 15 282,039 11,999 3885
Twitter
Followers Tweets Impressions Mentions
394 0 0 0
Instagram
Followers Posts Likes
2119 10 249
Nextdoor
Posts Impressions Reactions
0 0 0
Mt. Shasta City Council Regular Meeting February 12, 2024 31 City Council Agenda Item # 10
Staff Report
Meeting Date: February 12, 2024
To: Mayor and City Council
From: Robert Gibson, Chief of Police
Subject: Second Reading of Ordinance CCO-24-XX, Amending Chapter

7.60.010 Designation of very high fire hazard severity zones.

Recommendation:

Staff respectfully requests the City Council approve amendments for Mount Shasta Municipal Code Chapter 7.60 High Fire Hazard Severity Zones.

Background & Summary:

The current ordinance has not been updated since 1995 and is very difficult to read for the general public as it is broken down by map grid coordinates. The proposed changes to this ordinance will add the areas identified by the California Fire Marshal and the Mt. Shasta Fire Chief as high fire danger areas. These areas will be denoted utilizing the Genysus (Formerly Zonehaven Zones). This will allow for easy identification for citizens and staff for the areas of high fire danger.

Attachments:

Amended Chapter 7.60 High Fire Hazard Severity Zones.

Map of Genasys Zones
Regular
X Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting February 12, 2024 32 Mt. Shasta City Council Regular Meeting February 12, 2024 33 Mt. Shasta City Council Regular Meeting February 12, 2024 34 Mt. Shasta City Council Regular Meeting February 12, 2024 35 Mt. Shasta City Council Regular Meeting February 12, 2024 36 Mt. Shasta City Council Regular Meeting February 12, 2024 37 Mt. Shasta City Council Regular Meeting February 12, 2024 38 Mt. Shasta City Council Regular Meeting February 12, 2024 39 ORDINANCE CCO-24-XX

AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA
AMENDING SECTION 7.60.010 OF THE
MT. SHASTA MUNICIPAL CODE
WHEREAS, pursuant to Chapter XI, Section 7, of the California Constitution, the City of Mt. Shasta (“City”) may make and enforce within its limits all local, police, sanitary, and other ordinance and regulations not in conflict with general laws; and WHEREAS, the City Council of the City of Mt. Shasta may make amendments to the Mt. Shasta Municipal Code as needed; and
WHEREAS, the City Council of the City of Mt. Shasta finds that the current designation of high fire hazard severity zones has not been updated since 1995; and, WHEREAS, the City Council of the City of Mt. Shasta has determined that the updating of the high fire hazard severity zones will be identified utilizing Genasys Evacuation zone mapping which allows for easier identification for citizens and staff; and WHEREAS, the City Council of the City of Mt. Shasta has determined that following changes to the Mount Shasta Municipal Code Section 7.60 High Fire Hazard Severity Zones is warranted.

BE IT ORDAINED that the City Council of the City of Mt. Shasta does amend the Mt. Shasta Municipal Code Section 7.60.010 to read as follows:

7.60.010 Designation of very high fire hazard severity zones The following areas are hereby designated as very high fire hazard severity zones within the City of Mt. Shasta:
(A) Genasys zone MTS-6132
(B) Genasys zone MTS-6135
(C) Genasys Zone MTS-6155
(D) Genasys zone MTS-6161
(E) Genasys zone MTS-6224,
(F) Genasys zone MTS-6227, and
(G) Genasys zone MTS-6164
The foregoing Ordinance was adopted at the regular meeting of the City Council of the City of Mt. Shasta held on this XXX by the following vote:

AYES: NOES: ABSENT:

Mt. Shasta City Council Regular Meeting February 12, 2024 40 ABSTAIN:

DATED: February 12, 2024
ATTEST: CITY OF MT. SHASTA
______________________________ ______________________________ Kathryn M. Joyce, Deputy City Clerk John Stackfleth, Mayor FORM APPROVED:
_____________________________
John Sullivan Kenny, City Attorney

CERTIFICATION
I HEREBY CERTIFY that the foregoing Ordinance CCO-24-XX was introduced, by title only, at a regular meeting of the Mt. Shasta City Council on the 22nd day of January 2024, and was adopted at a regular meeting of said Council on the XX. ______________________________
Kathryn M. Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting February 12, 2024 41 City Council Agenda Item # 9
Staff Report
Meeting Date: January 8th, 2024
To: Mayor and City Council
From: City Manager, Todd Juhasz
Subject: Proposed compensation changes to attract/maintain quality City Council candidates
Recommendation:

Based on conversations with Council at the December 11th Council meeting, staff recommends that Council approve an increase in compensation for Council members from $220 per/month to $300 per/month. This is allowed under SB 329, a measure passed to address stagnant compensation for Council members in general law cities.

Summary:

At a recent City Council meeting, then Mayor Clure shared that she had attended a CalCities Conference session about how to attract quality candidates to run for City Council. She suggested that City staff research the cost of providing health insurance for members and/or increasing compensation rates.

Information: Finance Director Terrell called the Teamster’s Union that represents city staff to inquire about whether current health insurance rates provided by Anthem Blue Cross, as negotiated through the Teamster’s Union, could be extended to Council members at member rates. The response from the Teamster’s representative was a definitive no. There position is that any insurance provided to Council members would have to be provided at market rate consistent with those extended to self-insured individuals. Based upon this information, staff believes that extending individual rates would be too cost prohibitive for the City.

Next, staff researched the compensation issue. Currently, Council members are paid a stipend of $220 per month. Under the recently passed Senate Bill 329, the maximum compensation allowed for Council members has been increased with rates being determined by the population of a given city. Under the category of cities with populations under 35,000, the maximum monthly compensation is $950. In addition, the maximum annual increase is capped at 5%
For Discussion: At the December 11th Council Meeting, there was discussion over whether: a) increasing the monthly compensation rate would attract quality candidates to run for Council, and; b) under SB 329, how much of an increase would be reasonable based upon the workload, as well as how much of an increase should trigger community members to weigh on via a formal ballot measure?
X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting February 12, 2024 42 2 From the discussion it is not clear that an increase would meet the stated goal, but it appears that an increase in compensation from $220 per/month to $300 per/month was the direction given to staff.

Background on SB 329:

SB 329 addresses the issue of stagnant compensation for city council members in general law cities. Existing law authorizes a city council to enact an ordinance to provide each member of the city council with a salary based on the population. The existing compensation schedule, which has not been adjusted since 1984, has not kept pace with inflation. The bill aims to provide cities with the option to adjust council member compensation to account for inflation and support diversity in city councils because increased compensation can help individuals from across different income levels receive sufficient income for their service.

Key Provisions
Increased Salary Maximums
Under existing law, city councils can enact ordinances to provide salaries to council members based on the population of the city. SB 329 increases the maximum amounts of salary that can be approved by city ordinance, based on the population of the city. The new salary limits are as follows:
• Up to $950 per month for cities up to and including 35,000 in population. • Up to $1,275 per month for cities over 35,000 up to and including 50,000 in population. • Up to $1,600 per month for cities over 50,000 up to and including 75,000 in population. • Up to $1,900 per month for cities over 75,000 up to and including 150,000 in population.
• Up to $2,550 per month for cities over 150,000 up to and including 250,000 in population.
• Up to $3,200 per month for cities over 250,000 in population Additional Compensation Increases
SB 329 allows council member salaries to be increased beyond the specified maximums. The increases shall not exceed the greater of the following two conditions:
• The increase cannot exceed 5% for each calendar year from the operative date of the last salary adjustment.
• The increase cannot exceed the amount of inflation since January 1, 2024, based on the California Consumer Price Index. The inflation-based increase is capped at 10% for each calendar year.

Adoption of Ordinance
Mt. Shasta City Council Regular Meeting February 12, 2024 43 3 The bill requires a city council to consider the adoption of an ordinance to increase council member compensation in open session during at least two regular meetings. The proposed ordinance, including findings justifying the need for the increase, must be presented at the first meeting. The adoption of the ordinance can take place at the second meeting, which must be held at least seven days after the first meeting. This is important because there is normally a five-day waiting period between the introduction and adoption of an ordinance.

Mt. Shasta City Council Regular Meeting February 12, 2024 44 ORDINANCE CCO-24-XX

AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA
AMENDING CHAPTER 2.22.010 OF TITLE 2 OF
THE MT. SHASTA MUNICIPAL CODE

TO INCREASE COUNCIL MEMBER COMPENSATION
The City Council of the City of Mt. Shasta does hereby ordain as follows:

I. FINDINGS
Section 2.22.010 is modified as follows:

II. TEXT OF CODIFIED ORDINANCE
Chapter 2.22

COUNCIL MEMBER COMPENSATION
Sections:

2.22.010 Council Member Salaries. Council Members shall receive a salary of $300.00 per month.

ROLL CALL VOTE:

AYES:

NOES:

ABSENT
ABSTAIN:

CITY OF MT. SHASTA:

______________________________
John Stackfleth, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________________ ______________________________ Kathryn M. Joyce, Deputy City Clerk John S. Kenny, City Attorney Mt. Shasta City Council Regular Meeting February 12, 2024 45 IT IS HEREBY CERTIFIED that the foregoing Ordinance CCO-24-XX was introduced and read by title only, by the City Council of the City of Mt. Shasta at a regular meeting of said Council on January 8, 2024 and was duly adopted, by title only, by said Council at a regular meeting held on the XXX.
________________________________
Kathryn M. Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting February 12, 2024 46 CITY COUNCIL AGENDA ITEM # 7f
MEETING DATE: February 12, 2024
TO: Mayor and City Council
FROM: Robert Gibson, Chief of Police
SUBJECT: Military Equipment Annual Report for 2023
RECOMMENDATION:

Staff respectfully request the City Council recieve the 2023 Military Equipment inventory as required by Mount Shasta Municpal Code Ordinance 2.280.

BACKGROUND & SUMMARY:

On September 30th, 2021, California Assembly Bill No 481 was signed into law. This Bill required all law enforcement agencies participating in the Federal Surplus Property Acquisition law of 1945, also know as the “10-33” program to have a policy addressing the use of military equipment. The law further required that the Police Department present to the governing body an annual report of all military equipment and that the report be done in a public format to allow for community engagement.

ATTACHMENTS:
2023 Military Equipment Inventory
X Regular Session
Special Session
Emergency
Session
Closed Session
Mt. Shasta City Council Regular Meeting February 12, 2024 47 City of Mt Shasta Police Department
Chief Robert L. Gibson
303 N Mt Shasta Blvd Mt Shasta, CA 96067
530 926 7540 Fax 530 926 3601
Annual Military Equipment report for Year 2023.

Pursuant to Mount Shasta Municipal Code section 2.80. The Mount Shasta Police Department has the following “Military Equipment”.

Colt Ar-15, Model M16A1 – 5.56mm – S/N 1828498
Colt Ar-15, Model M16A1 - 5.56mm S/N 1798765
H&R Arms, Model M14 - 7.62mm S/N 1001497
Winchester, Model M14 - 7.62mm S/N 1241545
Unk. Make, Model M14 – 7.62mm S/N 581397
Winchester, Model M14 – 7.62mm S/N 1036229
During the course of the year one Colt AR 15 was in service at the beginning of the year that was taken out of service. There were no other Military equipment itemsin service for the remainder of the year.

All weapons were stored in a double locked area and were not used.

There was no annual cost associated with the storage and use of the equipment.

There were no complaints or concerns received during the year regarding the equipment.

There are no plans to acquire any additional equipment in 2024.

Changes/Edits from Previous Year: None
Respectfully submitted.

Robert L. Gibson, Chief of Police
Mt. Shasta City Council Regular Meeting February 12, 2024 48 Agenda Item # 8
Staff Report
Meeting Date: February 12th, 2024
To: City Council
From: City Manager
Subject: Acceptance of the Raftelli’s Final Drainage Impact Fee Report
Recommended Action:

Staff recommends the following:
1) Approve the revised Stormwater Drainage Impact Fee Report; 2) Mail a notice of a rate hearing which requires a 45 day public comment period.

Summary:

The City of Mt Shasta currently charges property owners a flat fee of $1.00 per/mo. to help pay for the replacement of failing drainage infrastructure, an amount that is woefully inadequate. To determine a fair rate for property owners to pay that will allow the City to start funding the replacement of failing infrastructure, the City contracted with a company titled Raftellis. Raftellisis considered a nationwide expert in performing such studies in a manner that employs very specific methodology that assesses the percentage of impervious surface per eligible parcel within the City’s boundaries. The methodology to determine the aforementioned rate is outlined below. The rate per Equivalent Residential Unit (ERU) will be used as the target rate for a Drainage Assessment to be considered in an 218 process/ upcoming election.

The required increases over a five year period that will allow the City to fund the replacement of failing drainage infrastructure over a five year period are outlined in the table below:

FY 2024 [1] FY 2025 FY 2026 FY 2027 FY 2028
Months Effective 5 12 12 12 12
Proposed Rate per ERU $15.00 $15.00 $20.00 $24.00 $28.00 The Executive Summary outlining the current rate, funding needs, methodology, and assumptions are outlined in the Executive Summary to the report are outlined in the text to follow (the full report is included as an addendum):

Executive Summary:

1.1. Introduction
The City of Mt. Shasta (City) currently provides stormwater service within its boundaries, recovering revenue through a flat fee charged to its approximately 2,028 water accounts. The City’s stormwater utility is intended to be financially self-sufficient with funding for capital and operating requirements derived primarily from user charges, which amount to approximately $24,000 annually. The City’s stormwater X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting February 12, 2024 49 system consists of remnant creeks and wetlands interconnected to a network of pipes, drains, ditches, and culverts. Much of the current system is aging and in need of repair or replacement to continue proper function and prevent system failure. As annual user charges currently provide inadequate funding to meet requirements for both operating and capital needs, the City has been unable to complete relevant capital projects. The need has become more apparent as the City has begun to experience storms of greater intensity which exacerbate the City’s drainage issues. The aging infrastructure of the City must be addressed to continue to provide benefits to the community. An update of the Stormwater Master Plan in 2020 identified opportunities to implement multi- benefit projects which address the stormwater challenges experienced by the City.

Raftelis used industry standard methodologies to develop a financial plan and rate structure alternatives with needed, enhanced funding to support a more robust stormwater program and allow the City to take opportunities to improve local water quality, flood management, and the local environment through stormwater management.

1.2. Study Goals and Objectives
The goal for this study was to develop a 5-year financial plan for the City’s stormwater utility from FY 2024 – FY 2028 (study period) in which:
• Rate revenues are sufficient to meet annual operating and capital expenditures, • Reserve levels are maintained in accordance with industry best practices1, and • The rate structure provides enhanced equity between customer classes compared with a flat rate.

1.3. Study Findings
The study team found that projected stormwater service revenue under the current rates and rate structure is insufficient to meet annual revenue requirements through the study period. To meet the City’s objectives, Raftelis recommends revenue adjustments following the schedule below for FY 2024 through FY 2028.

Table 1: Required Revenue Adjustments, FY 2024 - 2028
FY 2024 [1] FY 2025 FY 2026 FY 2027 FY 2028
Annual Revenue Adjustments 1,193% 140% 33% 20% 17%
[1] Rate adjustments in FY2024 are expected to be implemented beginning in February 2024.

PLEASE TAKE NOTICE THAT the Mt. Shasta City Council will conduct a Public Hearing to consider proposed rates for stormwater services. The costs incurred by the City to operate, maintain, repair, and replace essential infrastructure continue to increase. The proposed stormwater rates will ensure that the stormwater utility collects sufficient revenue to cover operating and capital expenses to maintain reliable service and run the utility efficiently and consistently with industry standards.

Why Am I Receiving This Notice?
This Notice is being furnished to you by the City pursuant to California Proposition 218, which requires the City to notify property owners of record and stormwater utility customers of proposed increases for stormwater services. This serves as notice that the Mt Shasta City Council will conduct a Public Hearing at the time, date, and location outlined in the mailed notice to consider recommended adjustments to its stormwater rates.

All those interested are invited to appear at the time and place of the Public Hearing enclosed to give oral or written testimony or to submit written protests regarding the proposed rate adjustments. The City Council will hear and consider oral testimony and written materials submitted regarding proposed rate adjustments at the Public Hearing. The City Council has the authority to adjust the proposed rate changes in response to oral testimony and written materials submitted for consideration, provided that any adjustments cannot increase rates beyond those listed in this Notice. If adopted, proposed stormwater rate adjustments would become effective on July 1, 2024, with annual rate adjustments on July 1.

How Do I protest the Public Rate Hearing
FY2028, Raftelis recommends annual revenue adjustments of 3.0%. In addition, Raftelis recommends instituting an impervious area (IA)-based rate structure with equivalent residential units (ERUs) serving as the units of charge. An IA-based rate structure will improve the equity of revenue recovery between classes compared with the current flat rate per account. Under the recommended revenue adjustment and rate structure, the monthly bill for a typical single-family property will increase from $1.00 to $15.00 in February 2024.

Table 2: Recommended Rate Structure
Land Use Type Rate Structure
Single-Family Residential (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residential
(NSFR)
Fee calculated on measured IA;
1 ERU per 3,000 sq ft IA
Mt. Shasta City Council Regular Meeting February 12, 2024 51 Raftelis recommends that the stormwater financial plan be updated annually to reflect current estimates of revenue, operating expenses, capital improvement needs, and maintenance of reserve targets.

2.3 Revenues

2.3.1. Current Rate Revenue
The main source of funds for the stormwater utility is stormwater rate revenue. The current monthly stormwater fee of $1.00 per account generates approximately $24,000 annually.

2.3.2. Grants and Other Sources of Funding
The City actively pursues additional sources of funding in addition to rate revenues. In July 2023, Raftelis worked with the City to complete a submission for funding through the Clean Water State Revolving Fund (CWSRF) Program. The submission requested financial assistance in the form of planning and design funds for drainage improvement projects totaling $1,575,000. The CWSRF Program will provide funds in the fall of 2023. Following the planning and design stage, funding opportunities also exist with the CWSRF program; should the City decide to apply for this funding in the future, there is a better chance of award if the City can show the ability to match funds.

Raftelis also worked with the City to complete a submission in June for the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. This submission requested planning and design funds for deployment of alternative fuel infrastructure, which would include extensions of storm drainage infrastructure to the proposed sites. The total anticipated cost for planning and design is $2.7 million; the City has requested
$2.16 million as part of this submission and, if awarded the grant, will require a 20% match. As this grant is currently pending, it has not been included as a source of revenue for this study. Should it be awarded, Raftelis recommends the City update its financial plan to account for the additional revenue.

2.3.3. Recommended Revenue Adjustments
Stormwater rate revenue should be set at a level that is sufficient to meet revenue requirements, finance the capital improvement program, and maintain adequate reserves. Raftelis recommends the City set target operating reserves at 60 days of operating expenses and capital reserves at the annual average of 5-year capital expenses. This amount provides a reasonable operating allowance for sound stormwater utility operations and exceeds the reserve recommendation in the industry for a utility of this size, which is a reserve equal to 60 days of operating expense
Mt. Shasta City Council Regular Meeting February 12, 2024 52 The City’s revenue under current rates is far outpaced by revenue requirements. To meet the City’s objectives, Raftelis has calculated the required revenue adjustments from FY 2024 – FY 2028. This adjustment would increase annual rate revenues from approximately $24,000 to $1.4 million in FY2028, allowing the utility to meet its objectives.

Table 5: Stormwater Utility Financial Plan Projections
Description FY2024 FY2025 FY2026 FY2027 FY2028
Annual Revenue
Adjustment
1,193% 140% 33% 20% 17%
Total Rate Revenues $314,625 [1] $755,100 $1,006,800 $1,208,160 $1,409,520 Total Expenditures $139,332 $267,301 $284,469 $1,144,327 $1,552,392 Net Cash Flows $1,750,293 $487,799 $722,331 $63,833 ($142,872) Ending Balance $1,750,293 $2,238,092 $2,960,423 $3,024,256 $2,881,384 Target Reserves $254,605 $509,209 $763,814 $1,018,419 $1,273,023 Over/(Under) Target $1,495,689 $1,728,883 $2,196,609 $2,005,838 $1,608,361 [1] Rate adjustments in FY2024 are expected to be implemented beginning in February 2024.

In addition, Raftelis recommends updating the current rate structure from a per-account charge to an impervious area-based rate structure with equivalent residential units (ERUs) serving as the units of charge.

An IA-based rate structure will improve rate recovery equity between classes and clarity for customers.

Under the recommended rate structure, the monthly fees for a typical single-family property are shown in the table below. This rate structure and its development are discussed in detail in the following section.

Table 6: Proposed Monthly Fee per ERU
Description FY2024 [1] FY2025 FY2026 FY2027 FY2028
Months Effective 5 12 12 12 12
Monthly Fee per ERU $15.00 $15.00 $20.00 $24.00 $28.00
[1] Rate adjustments in FY2024 are expected to be implemented beginning in February 2024 Mt. Shasta City Council Regular Meeting February 12, 2024 53

CITY OF MT SHASTA, CA
Stormwater
Rate Study
DRAFT REPORT / JANUARY 10, 2024
Mt. Shasta City Council Regular Meeting February 12, 2024 54 227 W. Trade Street, Suite 1400, Charlotte, NC 28202
www.raftelis.com
January 10, 2023
Mr. Todd Juhasz
City Manager
City of Mt. Shasta
305 North Mt Shasta Boulevard
Mt Shasta, CA 96067
Subject: Stormwater Study Report
Dear Mr. Juhasz,
Raftelis is pleased to provide this Stormwater Rate Study Report (Report) for the City of Mt. Shasta (City) to support the City in establishing updated stormwater rates.

The major objectives of the study include the following:
• Develop financial plans for the stormwater utility to ensure financial sufficiency, meet operation and maintenance (O&M) costs, and ensure sufficient funding for capital needs. • Review current rate structures for the stormwater utility and design rate alternatives that recover annual revenue requirements and improve customer class equity.

The report summarizes the key findings and recommendations related to the development of the financial plans for the utility and the development of alternative stormwater rates.

It has been a pleasure working with you, and we thank you and the City staff for the support provided during the course of this study.

Sincerely,
Henrietta Locklear
Vice President
Mt. Shasta City Council Regular Meeting February 12, 2024 55 City of Mt Shasta / Stormwater Financial Plan & Rate Study Contents

1. Executive Summary ..................................................................... 6

1.1. Introduction ...................................................................................................................6

1.2. Study Goals and Objectives.........................................................................................6

1.3. Study Findings ..............................................................................................................6

2. Financial Plan............................................................................... 8

2.1. Assumptions .................................................................................................................8

2.2. Revenue Requirements ................................................................................................8

2.2.1. Expenditures ................................................................................................................... 8

2.2.2. Reserves......................................................................................................................... 8

2.3. Revenues .......................................................................................................................9

2.3.1. Current Rate Revenue .................................................................................................... 9

2.3.2. Grants and Other Sources of Funding............................................................................. 9

2.3.3. Recommended Revenue Adjustments ............................................................................ 9

3. Rate Structure............................................................................ 11

3.1. Background .................................................................................................................11

3.2. Rate Structure Analysis..............................................................................................11

3.2.1. Data 12

3.3. Units of Service...........................................................................................................12

3.3.1. Data Development and ERU Calculation....................................................................... 13

3.3.2. Units of Service Calculation........................................................................................... 14

3.4. Rates Under Recommended Structure......................................................................14

4. Final Recommendations............................................................. 17 Mt. Shasta City Council Regular Meeting February 12, 2024 56 City of Mt Shasta / Stormwater Financial Plan & Rate Study Tables
Table 1: Required Revenue Adjustments, FY 2024 - 2028....................................................................... 6 Table 2: Recommended Rate Structure................................................................................................... 7 Table 3: Assumptions .............................................................................................................................. 8 Table 4: Reserve Targets......................................................................................................................... 9 Table 5: Stormwater Utility Financial Plan Projections ........................................................................... 10 Table 6: Proposed Monthly Fee per ERU............................................................................................... 10 Table 7: SFR Land Use Codes .............................................................................................................. 12 Table 8: Sample Statistics...................................................................................................................... 14 Table 9: Sample Property ERU Calculation Example............................................................................. 14 Table 10: Calculated Monthly Rates Under Recommended Structure, FY 2024 – FY 2028 ................... 14 Table 11: Proposed Rates Under Recommended Structure, FY 2024 – FY 2028 .................................. 15 Table 12: Recommended Rate Structure ............................................................................................... 15 Table 13: Comparison of FY2023 Current and Recommended Rates.................................................... 16 Table 14: Recommended Revenue Adjustments, FY 2024 - 2028 ......................................................... 17 Table 15: Recommended Rate Structure ............................................................................................... 17 Table 16: Proposed Rates Under Recommended Structure, FY 2024 – FY 2028 .................................. 17 Figures
Figures 1 & 2: Digitized SFR Parcels ..................................................................................................... 13 Mt. Shasta City Council Regular Meeting February 12, 2024 57 City of Mt Shasta / Stormwater Financial Plan & Rate Study

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Mt. Shasta City Council Regular Meeting February 12, 2024 58 City of Mt Shasta / Stormwater Financial Plan & Rate Study

1. Executive Summary

1.1. Introduction
The City of Mt. Shasta (City) currently provides stormwater service within its boundaries, recovering revenue through a flat fee charged to its approximately 2,028 water accounts. The City’s stormwater utility is intended to be a financially self-sufficient with funding for capital and operating requirements derived primarily from user charges, which amount to approximately $24,000 annually. The City’s stormwater system consists of remnant creeks and wetlands interconnected to a network of pipes, drains, ditches, and culverts. Much of the current system is aging and in need of repair or replacement to continue proper function and prevent system failure. As annual user charges currently provide inadequate funding to meet requirements for both operating and capital needs, the City has been unable to complete relevant capital projects. The need has become more apparent as the City has begun to experience storms of greater intensity which exacerbate the City’s drainage issues. The aging infrastructure of the City must be addressed to continue to provide benefits to the community. An update of the Stormwater Master Plan in 2020 identified opportunities to implement multibenefit projects which address the stormwater challenges experienced by the City.

Table 1: Required Revenue Adjustments, FY 2024 - 2028
FY 2024 [1] FY 2025 FY 2026 FY 2027 FY 2028
Annual Revenue Adjustments 159% 1,100% 33% 20% 17%
[1] Rate adjustments in FY2024 are expected to be implemented beginning in June 2024.

These adjustments would increase annual rate revenues from approximately $24,000 to an average of approximately $1.4 million by FY2028, allowing the utility to enhance stormwater management. Following 1 “Cash Reserve Policy Guidelines”, American Water Works Association, 2018 Mt. Shasta City Council Regular Meeting February 12, 2024 59 City of Mt Shasta / Stormwater Financial Plan & Rate Study FY2028, Raftelis recommends annual revenue adjustments of 3.0%. In addition, Raftelis recommends instituting an impervious area (IA)-based rate structure with equivalent residential units (ERUs) serving as the units of charge. An IA-based rate structure will improve the equity of revenue recovery between classes compared with the current flat rate per account. Under the recommended revenue adjustment and rate structure, the monthly bill for a typical single-family property will increase from $1.00 to $15.00 in June 2024.

Table 2: Recommended Rate Structure
Land Use Type Rate Structure
Single-Family Residential (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residential
(NSFR)
Fee calculated on measured IA;
1 ERU per 3,000 sq ft IA
Raftelis recommends that the stormwater financial plan be updated annually to reflect current estimates of revenue, operating expenses, capital improvement needs, and maintenance of reserve targets.

Mt. Shasta City Council Regular Meeting February 12, 2024 60 City of Mt Shasta / Stormwater Financial Plan & Rate Study

2. Financial Plan

2.1. Assumptions
The following data includes the major assumptions used in the study.

Table 3: Assumptions
Expense Inflation Factors
Operations and Maintenance
Capital

7.0% FY24; 3.0% thereafter

7.0%
Current Stormwater Accounts
Total, Residential and Non-Residential 2,028
Current Stormwater Fee
(per account per month)
Residential
Non-Residential
$1.00
$1.00

2.2. Revenue Requirements

2.2.1. Expenditures
The current and anticipated uses of funds include capital expenditure and operation and maintenance expenses (O&M). The costs of the City’s anticipated capital projects for FY2024 - 2028 are approximately $3.2 million (inflated). The largest projects are part of the Cold Creek Realignment and Restoration. This multi-phase project is expected to be completed in FY 2031 and is projected to cost approximately $6.1 million (inflated). Other projects include storm drainage replacement, street improvements, and retrofits, as well as installation of green infrastructure to provide proper storm drainage and treatment infrastructure.

O&M costs consist of regular inspections, cleaning, and maintenance, as well as seasonal program costs.

O&M averages approximately $40,000 annually during the study period.

2.2.2. Reserves
The City does not currently maintain a reserve balance. Raftelis recommends the City set target operating reserves at 60 days of operating expenses and capital reserves at the annual average of 5-years of capital expenses. This amount provides a reasonable operating allowance for sound stormwater utility operations and meets the reserve recommendation in the industry for a utility of this size.

To mitigate the impact that establishing operating and capital reserves in one year would have on rates, Raftelis recommends that both O&M and capital reserve targets be met by increasing the reserve amount incrementally. The annual average O&M reserve target over the study period is approximately $6,500; Raftelis recommends using 60-day calculated expenses from FY 2028 as a target. The annual average of 5- years of capital expenses ranges from a low of $850,000 to a high of $1.5 million over the course of the study period. Raftelis recommends using the 5-year average calculated in FY 2028 as a capital reserve target, which is approximately $1.3 million. By phasing in the reserve target at 20% annually, the full reserve target will be met by the end of the study period.

Mt. Shasta City Council Regular Meeting February 12, 2024 61 City of Mt Shasta / Stormwater Financial Plan & Rate Study Table 4: Reserve Targets
Reserve
Type Policy Target Reserve(end of study period)
20% of Total Reserve Target
(added per year)
O&M 60-day fund $6,929 $1,386
Capital
5-year average of
capital expenses
$1,266,094 $253,219
Total $1,186,616 $254,605

2.3. Revenues

Raftelis also worked with the City to complete a submission in June for the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. This submission requested planning and design funds for deployment of alternative fuel infrastructure, which would include extensions of storm drainage infrastructure to the proposed sites. The total anticipated cost for planning and design is $2.7 million; the City has requested $2.16 million as part of this submission and, if awarded the grant, will require a 20% match. As this grants is currently pending, it has not been included as a source of revenue for this study. Should it be awarded, Raftelis recommends the City update its financial plan to account for the additional revenue.

The City’s revenue under current rates is far outpaced by revenue requirements. To meet the City’s objectives, Raftelis has calculated the required revenue adjustments from FY 2024 – FY 2028. This adjustment would Mt. Shasta City Council Regular Meeting February 12, 2024 62 City of Mt Shasta / Stormwater Financial Plan & Rate Study increase annual rate revenues from approximately $24,000 to $1.4 million in FY2028, allowing the utility to meet its objectives.

Table 5: Stormwater Utility Financial Plan Projections
Description FY2024 FY2025 FY2026 FY2027 FY2028
Annual Revenue
Adjustment
159% 1,100% 33% 20% 17%
Total Rate Revenues $62,925 [1] $755,100 $1,006,800 $1,208,160 $1,409,520 Total Expenditures $139,332 $267,301 $284,469 $1,144,327 $1,552,392 Net Cash Flows $1,498,593 $487,799 $722,331 $63,833 ($142,872) Ending Balance $1,498,593 $1,986,392 $2,708,723 $2,772,556 $2,629,684 Target Reserves $254,605 $509,209 $763,814 $1,018,419 $1,273,023 Over/(Under) Target $1,243,989 $1,477,183 $1,944,909 $1,754,138 $1,356,661 [1] Rate adjustments in FY2024 are expected to be implemented beginning in June 2024.

An IA-based rate structure will improve rate recovery equity between classes and clarity for customers. Under the recommended rate structure, the monthly fees for a typical single-family property are shown in the table below. This rate structure and its development are discussed in detail in the following section.

Mt. Shasta City Council Regular Meeting February 12, 2024 63 City of Mt Shasta / Stormwater Financial Plan & Rate Study

3. Rate Structure

3.1. Background
The City’s current rate structure is a fixed charge per water account of $1 per month. There were no records to indicate whether this rate, established in the 1990s, was based upon the results of a utility rate study2. The purpose of the rate structure analysis is to revisit the City’s existing rate structure and provide recommendations on updates to the rate structure to improve equity, clarity, collections, administration, and/or revenue generation as needed.

3.2. Rate Structure Analysis
The rate structure currently in place in the City is a uniform flat monthly charge per account. Under this rate structure, all accounts are charged the same rate. The simplicity of this rate structure offers several benefits, primarily that it is easy to communicate and does not present an administrative burden. In addition, there is equality between all users, who are charged the same regardless of the characteristics of the land or developments associated with their account.

However, the current uniform rate structure presents certain drawbacks. The most significant disadvantage is the lack of precision in reflecting the impact of each property on stormwater runoff. Properties with significantly different levels characteristics that impact the quality and quantity of stormwater runoff might pay the same fee. As the main purpose of a stormwater utility is to manage stormwater runoff, charging all properties as if they have the same impact results in inequitable distribution of costs associated with this management.

The most important factor influencing a property’s demand upon the City’s stormwater system and program is stormwater runoff and the best surrogate for that demand is a measure of is impervious area. Using a rate structure founded on measured or effective IA is industry best practice. Implementation of a stormwater fee based on IA is a fair, equitable, and legally defensible stormwater rate structure. This approach directly ties fees to properties demand upon the system through their stormwater runoff, providing a rational nexus between a property’s charge and the demands upon the utility. Properties with more impervious surfaces, which contribute more to runoff and require increased stormwater management efforts, pay higher fees.

As such, Raftelis recommends implementing an impervious area-based rate structure which will recover the required revenues in an equitable manner that reflects the demand placed by each property. Included in this analysis is an updated Equivalent Residential Unit (ERU) determination, the methodology for which is described in detail below. The ERU represents the amount of impervious surface area of a typical single family residential (SFR) property in the City and serves as the unit of charge. ERUs should be periodically updated over time to ensure that they continue to accurately reflect the IA of a typical residential property as the development occurs and characteristics of the City change. 2 RFP: Professional Services for Stormwater Utility Rate Study, City of Mt Shasta, issued January 21, 2022.

Mt. Shasta City Council Regular Meeting February 12, 2024 64 City of Mt Shasta / Stormwater Financial Plan & Rate Study

3.2.1. Data
Raftelis used aerial imagery from 2022 and tax assessor data from Siskiyou County, CA to conduct the analysis. This data was used to determine which properties in the City were SFR and which were non-single family residential (NSFR) properties. SFR properties typically have one or two residential units per property.

NSFR properties include all properties not captured in the SFR definition, including multi-family, commercial, industrial, and institutional properties. To determine the proper classification for each parcel, Raftelis reviewed Siskiyou County tax assessor land use codes and reviewed aerial imagery. Table 7 includes land use codes that were determined to be SFR properties based upon land use codes and visual assessment of aerial imagery3. All other properties were considered to be NSFR.

Table 7: SFR Land Use Codes
Land Use
Code
Description Detail
112A Single Family Residential Mobile Home (A=LPT, B=Licensed) 113 Single Family Residential Class 1 to 3 Residence
114 Single Family Residential Class 4 Residence
115 Single Family Residential Class 5 Residence
115M Single Family Residential Class 5 Residence
116 Single Family Residential Class 6 Residence
116M Single Family Residential Class 6 Residence
117 Single Family Residential Class 7 Residence
118 Single Family Residential Class 8 to 10 Residence
214 Multi-Residential - Nonconforming use Class 4 Residence on Multi-Residential 215 Multi-Residential - Nonconforming use Class 5 Residence on Multi-Residential 216 Multi-Residential - Nonconforming use Class 6 Residence on Multi-Residential 221 Multi-Residential - Nonconforming use Duplex Type
313 Commercial - Nonconforming use Class 1 to 3 Residence on Commercial 314 Commercial - Nonconforming use Class 4 Residence on Commercial 315 Commercial - Nonconforming use Class 5 Residence on Commercial 316 Commercial - Nonconforming use Class 6 Residence on Commercial 112A Single Family Residential Mobile Home (A=LPT, B=Licensed)

3.3. Units of Service
To determine the units of service that will serve as the basis upon which all properties are built, Raftelis calculated the City’s ERU value using a sample of SFR properties. This value represents the amount of IA of a typical SFR within the City. We are recommending a flat rate for SFRs; thus each SFR will be assigned 1 ERU in the computation of units of service. Next, the impervious area on all NSFRs is digitized to determine the IA for each property, which is used to calculate the ERUs of each property. The sum of SFR and NSFR ERUs is the total units of service for the City and are used to calculate rates. The process of developing units of service is described in detail below.
3As properties can occasionally be misclassified in property records, individual property classes can be overridden in the bill file. This initial effort was completed to determine the population of SFRs versus non-SFRs.

Mt. Shasta City Council Regular Meeting February 12, 2024 65 City of Mt Shasta / Stormwater Financial Plan & Rate Study

3.3.1. Data Development and ERU Calculation
To calculate the ERU for the City, we conducted a random sample of 270 parcels which were determined to be single-family residences. This sample size was selected to ensure a 95% confidence level in the result. We ensured by visual review of the sample parcels that they encompassed a representative range of geography, structure age, and housing type. In some cases, an original randomly selected sample SFR property was not suitable to be included because it was obscured by vegetation and could not be accurately measured. In these cases, a visibly similar property from the same geographic region (the same block, if possible) was chosen to replace that sample property.

Once identified, the IA on each sample SFR parcel was digitized. Impervious area includes any surface that does not allow water to infiltrate the ground. Typical examples of IA include:
• Building roof top and canopies
• Concrete and asphalt pavement
• Structural decks and patios
• Brick and concrete pavers
• Gravel used for vehicular or pedestrian traffic and/or vehicle parking Figures 1 and 2 show examples of digitized SFR parcels. The sample property’s boundary is outlined in yellow while IA is shown in translucent blue.

Once properties were digitized, Raftelis calculated summary statistics for the sample set.

Figures 1 & 2: Digitized SFR Parcels
Mt. Shasta City Council Regular Meeting February 12, 2024 66 City of Mt Shasta / Stormwater Financial Plan & Rate Study s
Table 8: Sample Statistics
Maximum IA 18,060 sq ft
Minimum IA 1,099 sq ft
Average IA 3,429 sq ft
Median IA 3,082 sq ft
Based on this analysis, Raftelis recommends that the City define its ERU value as 3,000 to align with the calculated median IA of 3,082.

3.3.2. Units of Service Calculation
Raftelis calculated units of service separately for SFR and NSFR properties. SFRs were determined to be 1 ERU; therefore, these units were determined using a simple count of SFR properties.

NSFR units of service were calculated using a three-step process. First, NSFR properties were identified as those which did not fall into the SFR classification. Second, IA on these properties was digitized to determine the total square feet of impervious area for each property. Last, the ERUs for each parcel were calculated by dividing IA by the recommended ERU value of 3,000 sq ft, then rounding up to the next whole integer, as shown in the example below.

Table 9: Sample Property ERU Calculation Example
IA = 4,968 sq ft
ERUs = 4,968 sq ft / 3,000 sq ft per ERU = 1.656 → 2 ERUs The updated units of service calculated for this study include 1,206 SFR and 2,989 NSFR ERUs.

3.4. Rates Under Recommended Structure
Using the calculated units of service and rate requirements for each fiscal year of the study period, Raftelis calculated the required monthly rates under an IA-based rate structure.

Table 10: Calculated Monthly Rates Under Recommended Structure, FY 2024 – FY 2028 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Units of Service
SFR 1,206 1,206 1,206 1,206 1,206
NSFR 2,989 2,989 2,989 2,989 2,989
Total ERUs 4,195 4,195 4,195 4,195 4,195
Expenses
O&M $37,450 $38,574 $39,731 $40,923 $42,150
Capital $101,882 $228,728 $244,738 $1,103,404 $1,510,242 Reserve Targets
O&M $1,386 $1,386 $1,386 $1,386 $1,386
Mt. Shasta City Council Regular Meeting February 12, 2024 67 City of Mt Shasta / Stormwater Financial Plan & Rate Study Capital $253,219 $253,219 $253,219 $253,219 $253,219
Revenue Requirement $393,896 $521,865 $539,033 $1,398,891 $1,806,957 Non-Rate Revenue $1,575,000 $0 $0 $0 $0
Revenue to be Collected from
Rates
-$1,181,104 $521,865 $539,033 $1,398,891 $1,806,957
Calculated Rate per ERU -$23.47 $10.37 $10.71 $27.79 $35.90 The calculations in the table above assume rates will be in effect for 12 consecutive months starting at the beginning of the fiscal year (July 1). While these rates would provide adequate funding for planned expenditures over the study period, they fluctuate noticeably from year to year, and feature large rates that may be intolerable to rate payers. To avoid such variability in rates and keep rates from reaching such high peaks in later years, Raftelis recommends beginning with a lower rate and increasing rates gradually over the course of the study. Raftelis recommends using the rate schedule detailed below for FY 2024 through FY 2028.

Table 11: Proposed Rates Under Recommended Structure, FY 2024 – FY 2028 Description FY 2024 [1] FY 2025 FY 2026 FY 2027 FY 2028 Months Effective 5 12 12 12 12
Proposed Rate per ERU $15.00 $15.00 $20.00 $24.00 $28.00 [1] Rate adjustments in FY2024 are expected to be implemented beginning in June 2024.

Raftelis recommends instituting an impervious area (IA)-based rate structure with equivalent residential units (ERUs) serving as the unit of charge. An IA-based rate structure will improve equity of revenue recovery between classes. Under this structure, all parcels with an SFR land use code will be charged using a flat rate of 1 ERU. The units of service for NSFRs will be calculated by dividing IA by the ERU value of 3,000 sq ft, then rounding up to the nearest whole number, as shown in the example in Table 9. This structure is shown in the table below.

Table 12: Recommended Rate Structure
Land Use Type Rate Structure
Single-Family Residential (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residential
(NSFR)
Fee calculated on measured IA;
1 ERU per 3,000 sq ft IA
Under the recommended rate structure, the monthly bill for a typical single-family property will increase from $1 to $15.00 in June 2024.

Mt. Shasta City Council Regular Meeting February 12, 2024 68 City of Mt Shasta / Stormwater Financial Plan & Rate Study Table 13: Comparison of FY2023 Current and Recommended Rates Description Current Rates,
FY 2023
Recommended Rates,
FY 2024 [1]
Charge per bill $1.00 per account $15.00 per ERU
[1] Rate adjustments in FY2024 are expected to be implemented beginning in June 2024.

Mt. Shasta City Council Regular Meeting February 12, 2024 69 City of Mt Shasta / Stormwater Financial Plan & Rate Study

4. Final Recommendations
The study team found that projected stormwater service revenue is insufficient to meet annual revenue requirements through the study period. Raftelis recommends rates be increased to meet revenue requirements and sufficiently fund operating and capital expenditures, as well as provide adequate reserves through the study period.

To meet this goal, Raftelis recommends revenue adjustments following the schedule below for FY 2024 through FY 2028.

Table 14: Recommended Revenue Adjustments, FY 2024 - 2028 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Annual Revenue Adjustments 159% 1,100% 33% 20% 17%
These adjustments will increase annual rate revenues from approximately $24,000 to an average of approximately $1.0 million, allowing the utility to meet its goals. Following FY 2028, Raftelis recommends annual revenue adjustments of 3.0%. In addition, Raftelis recommends instituting an impervious area-based rate structure with equivalent residential units (ERUs) serving as the units of charge. Under the recommended rate structure, SFRs will be charged as 1 ERU, and units of service for NSFRs will be calculated based on measured IA.

Table 15: Recommended Rate Structure
Land Use Type Rate Structure
Single-Family Residential (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residential
(NSFR)
Fee calculated on measured IA;
1 ERU per 3,000 sq ft IA
Under this rate structure and recommended revenue adjustments, the monthly bill for a typical single-family property will increase from $1.00 to $15.00 in June 2024. Proposed rates are shown in the table below.

Table 16: Proposed Rates Under Recommended Structure, FY 2024 – FY 2028 FY 2024 [1] FY 2025 FY 2026 FY 2027 FY 2028
Months Effective 1 12 12 12 12
Proposed Rate per ERU $15.00 $15.00 $20.00 $24.00 $28.00 [1] Rate adjustments in FY2024 are expected to be implemented beginning in June 2024.

Raftelis recommends that the stormwater financial plan be updated annually to reflect current estimates of revenue, operating expenses, capital improvement needs, and maintenance of reserve targets.

Mt. Shasta City Council Regular Meeting February 12, 2024 70 City of Mt Shasta Stormwater Rates Proposition 218
Specs: 8.5”x11, color, 2-sided
VERSION 1, February xx, 2024
(16-pt size)

NOTICE OF PUBLIC HEARING
To Consider Proposed Stormwater Rate Change
Time/date of hearing
Location Address, Mt Shasta, CA 12345
PLEASE TAKE NOTICE THAT the Mt. Shasta City Council will conduct a Public Hearing to consider proposed rates for stormwater services. The costs incurred by the City to operate, maintain, repair, and replace essential infrastructure continue to increase. The proposed stormwater rates will ensure that the stormwater utility collects sufficient revenue to cover operating and capital expenses to maintain reliable service and run the utility efficiently and consistently with industry standards.

Why Am I Receiving This Notice?
This Notice is being furnished to you by the City pursuant to California Proposition 218, which requires the City to notify property owners of record and stormwater utility customers of proposed increases for stormwater services. This serves as notice that the Mt Shasta City Council will conduct a Public Hearing at the time, date, and location enclosed to consider recommended adjustments to its stormwater rates.

Why Are Stormwater Rate Increases Needed?
Stormwater services are funded by the rates customers pay. The City’s stormwater system consists of remnant creeks and wetlands interconnected to a network of pipes, drains, ditches, and culverts. Much of the current system is in need of repair or replacement to continue proper function and prevent system failure. As annual user charges currently provide inadequate funding to meet requirements for both operating and capital needs, the City has been unable to complete relevant capital projects. The need has become more apparent as the City has begun to experience storms of greater intensity which intensify the City’s drainage issues. The aging infrastructure must be addressed to continue to provide benefits to the community. An update of the Stormwater Master Plan in 2020 identified opportunities to implement multibenefit projects which address the stormwater challenges experienced by the City. The City is proposing to invest more than $3.0 million in projects, including storm drainage replacements, street improvements, and installation of green infrastructure to provide proper storm drainage and treatment infrastructure.

Per State law, revenues generated from rate increases must only be used to fund the actual costs to operate and maintain the system including infrastructure projects and the cost of debt to finance capital improvement projects.

With help from an independent consultant, a rate study was performed to assess the revenue needs for the stormwater utility. The proposed rates are determined based on the projected revenue needed to fund:

Mt. Shasta City Council Regular Meeting February 12, 2024 71 • Operations and Maintenance, such as asset inspection, sediment removal, and vegetation control.
• Capital, such as large projects to repair/replace infrastructure. • Reserves to fund emergency or unplanned expenses.

PROPOSED RATE RECOMMENDATIONS
Proposed Stormwater Rates and Rate Structure
The total revenue needs per year result in the proposed stormwater rate adjustments shown in the following tables. Customer charges will differ depending on the type of account (single-family residential (SFRs) or non-single-family residential (NSFRs)) and impervious area (IA). The City recommends updating the current rate structure from a per-account charge to an impervious area-based rate structure with equivalent residential units (ERUs) serving as the units of charge. This value represents the amount of IA of a typical single-family residence within the City. ERUs for NSFR’s is based upon measured IA divided by the ERU value of 3,000 sq. ft., rounded to the next whole integer, as shown in the example below.

Table 1: Sample Property ERU Calculation Example
Impervious Area = 4,968 sq ft
ERUs = 4,968 sq ft / 3,000 sq ft per ERU = 1.656  2 ERUs An IA-based rate structure will improve equity between classes and clarity for customers. This approach directly ties fees to properties demand upon the system through their stormwater runoff, providing a rational nexus between a property’s charge and the demands upon the utility. Properties with more impervious surfaces, which contribute more to runoff and require increased stormwater management efforts, pay higher fees. The proposed rate structure is shown in the table below.

Table 2: Proposed Rate Structure
Land Use Type Rate Structure
Single-Family Residen�al (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residen�al (NSFR) Fee calculated on measured IA; 1 ERU per 3,000 sq � IA
Table 3 shows the proposed monthly charge per ERU over the next five years, as well as the number of months the rate will be in effect.

Table 3: Proposed Monthly Charges, FY2024 – FY2028
FY 2025 [1] FY 2026 FY 2027 FY 2028
Months Effective 12 12 12 12
Proposed Rate per
ERU
$15.00 $20.00 $24.00 $28.00
[1] Rate adjustments in FY2025 are expected to be implemented beginning July 1, 2024.

Table 4 shows the proposed monthly bill for a typical SFR in July 1, 2024, as well as the dollar and percentage bill change from the previous bill.

Table 4: Single Family Residential Monthly Stormwater Bill Impacts, July 1, 2024 Current Monthly
Bill
Proposed
Monthly Bill Change ($) Change (%)
$1.00 $15.00 $14.00 1,400%
The Study Report is available on the website at www.mtshastaca.gov/stormwater-rate-study/ Mt. Shasta City Council Regular Meeting February 12, 2024 72 How Do I Protest the Proposed Rate Increases?
You have the right to protest the proposed stormwater rate adjustments. The protest must be in writing, and it must be submitted by either the property owner or a current ratepaying tenant. It must include the property service address and/or the assessor’s parcel number, the eligible individual’s name (property owner or tenant), a statement to the effect of “I protest the proposed stormwater rates,” and an original signature.

Written protests may only be submitted by mail or in-person to the Mt Shasta Deputy City Clerk at 305 N. Mt. Shasta Boulevard, Mt. Shasta, CA 96067, or during the Public Hearing listed on the public hearing notice. All protests must be received by the Deputy City Clerk before the conclusion of the Public Hearing. The Clerk will not accept or consider any protest received after the conclusion of the Public Hearing.

Only one written protest per affected property will be counted. Telephone, e-mail, and fax protests will not be accepted. At the Public Hearing on a upcoming date TBD, the City Council will accept and consider all written protests and hear all oral comments on the proposed stormwater rate changes. Oral comments will not be counted as protests unless accompanied by a written protest as outlined within this Notice.

At the conclusion of the Public Hearing, the City Council will consider adopting the proposed changes as follows:
(1) If fewer than a majority of property owners or ratepayers file a protest, the City Council will consider adjusting stormwater rates as proposed.
(2) If a majority of affected property owners or ratepayers protest the proposed stormwater rate adjustments before the conclusion of the Public Hearing, the City is prohibited by law from changing its stormwater rates at this time.

If adopted, the proposed stormwater rates will take effect beginning July 1, 2024. The reasons for the rate adjustments, the basis upon which they were calculated, and the amount of the proposed stormwater rates are described in more detail in the Rate Study Report, which is on file with the Deputy City Clerk and available at www.mtshastaca.gov/stormwater-rate-study/.

California law (Government Code section 53759) provides a 120-day statute of limitations for judicially challenging these rates.

Questions?
Phone: (530) 555-1234
Email: [email protected]
Web: Stormwater Rate Study webpage: www.mtshastaca.gov/stormwater-rate-study/.

Mt. Shasta City Council Regular Meeting February 12, 2024 73

CITY OF MT SHASTA STORMWATER RATE ADJUSTMENT MEASURE, DRAFT BALLOT Shall the City of Mt. Shasta be authorized to adjust the stormwater u�lity rates and rate structure (rate adjustments), the revenue from which will be used exclusively to fund vital stormwater management, infrastructure improvements, and water quality protec�on efforts within the city? A "NO" vote would maintain the current stormwater u�lity rates and rate structure.

A "YES" vote would authorize the adjustment of stormwater rates and rate structure as follows:

Table 1: Proposed Rate Structure
Land Use Type Stormwater U�lity Rate Structure
Single-Family Residen�al (SFR) Flat fee, 1 ERU per parcel Non-Single Family Residen�al (NSFR) Fee calculated on measured IA; 1 ERU per 3,000 sq � IA Table 2 shows the proposed monthly rate per ERU over the next five years.

Table 2: Proposed Monthly Rates, FY2025 – FY2028
FY 2025 [1] FY 2026 FY 2027 FY 2028
Proposed Rate per ERU $15.00 $20.00 $24.00 $28.00
[1] Rate adjustments in FY2025 are expected to be implemented beginning July 1, 2024.

This rate adjustment is intended to address the following issues:
• Provide opera�ons and maintenance services to help return and keep the system in good working order and extend its life.
• Repair and replace aging stormwater infrastructure to mi�gate flooding and erosion. • Establish and maintain reserve funds to cover unexpected costs or future financial obliga�ons. • Provide enhanced equity between customer classes compared with the current flat rate.

Fiscal Impact
The proposed rate adjustment is projected to generate an average es�mated $890,000 annually from FY2024 to FY2028, with rate revenues es�mated to be approximately $1.4 million in FY 2028. The es�mated revenue generated from rates are shown in Table 3.

Table 3: Annual Rate Revenue Es�mates, FY2025 – FY2028
FY 2025 [1] FY 2026 FY 2027 FY 2028
Es�mated Rate Revenues by
Year $755,100 $1,006,800 $1,208,160 $1,400,000
[1] Rate adjustments in FY2025 are expected to be implemented beginning July 1, 2024.

Mt. Shasta City Council Regular Meeting February 12, 2024 74 Please cast your vote by selec�ng "YES" or "NO" on the City of Mt. Shasta Stormwater Rate Adjustment Measure.

Mt. Shasta City Council Regular Meeting February 12, 2024 75 City Council Agenda Item #9
Staff Report
Meeting Date: February 12th, 2024
To: Mayor and City Council
From: City Manager, Todd Juhasz
Subject: Proposed option on two properties for the purpose of performing an environmental assessment.

Recommendation:

The City Manager recommends paying the outstanding lease for two APNs while the City performs environmental due diligence on the two properties for six months. The purpose is to see if the properties are worth purchasing at an appraised value to meet City planning/redevelopment goals.

Information:

You may recall that at the January 8th Council Meeting, it was agreed that the City would seek to purchase the structure located at 402 N. Mt Shasta Blvd as well as the two unpaved parcels located at the rear of the building. After talking to the owner, he may have a potential longterm lessee for the structure. While the owner determines whether the lease option for the structure is viable, he has offered to lease the two unpaved APNs at the rear of the structure for six months. During this period, the City will have the property appraised and will perform environmental due diligence on the unpaved lots. The owner has agreed to lease these two lots for $900 a month for the six-month period. The details related to the original proposal to lease all three APNs and the intent is outlined in detail below in the original staff report.

The City’s Ad Hoc Committee studying the daylighting of Castle Creek as well as the feasibility of turning Chestnut and N. Mt Shasta Boulevard into a one-way couplet. To date, the Committee has determined that if N. Mt Shasta Boulevard is converted to a SB one-way street, 30-degree angled parking would be required to meet vehicle clearance requirements. The conversion to angled parking would result in a loss of parking spaces along N. Mt Shasta Boulevard which would need to be mitigated. In addition, if Castle Creek daylighting is to work as a mechanism to generate tourism, the provision of more parking and the removal of the blight created by parked/inoperable vehicles visible from East Castle is highly desirable. More specifically, the parked and damaged vehicle are located on two APNs (057-191-170-000, and 057-191-150-000) North of East Castle Street between N. Mt Shasta Boulevard and Chestnut Streets.

It has come to the attention of the Ad Hoc Committee and Council that the owners of the structure located at 402 N. Mt Shasta Boulevard and the two parking lots alluded to above have recently been vacated and the owner is willing to lease or sell the three lots. The lots with the X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting February 12, 2024 76 2 APN numbers: 057-191-170-000 (developed parcel), 057-191-180-000 (large undeveloped parcel), and 057-191-150-000 (smaller and undeveloped parcel) are available for lease for $2200 per/mo. For the three and the owners are also willing to sell. Staff recommends optioning the properties for six months at the rate of $2200 per/month while the city performs environmental due diligence on the three properties. The purpose of the option is to see if the acquisition of one or more of the properties is worth purchasing to meet the City’s planning/development goals. Those goals would be to remove blight on the two lots to the North of E. Castle Street and to provide additional parking should the daylighting of Castle Creek and the one-way streets become viable projects. While environmental assessments are taking place, the City Manager and property owner will attempt to determine a fair price for each of the properties. This assumes that the environmental review of the properties results in either a negative declaration and/or the identification of any “hot spots” that appear to be easily mitigated.

A map of the properties is attached as an exhibit.

Mt. Shasta City Council Regular Meeting February 12, 2024 77 Brownell Vacant Parcels
Map data ©2023 INEGI Imagery ©2023 NASA, TerraMetrics | Terms of Use. 2 Results
Property Data
057-191-180-000
Property Data
057-191-150-000
Mt. Shasta City Council Regular Meeting February 12, 2024 78

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RECORDING REQUESTED BY:

John Sullivan Kenny
Attorneys at Law
Kenny & Norine
1923 Court Street
Redding, CA 96001
WHEN RECORDED RETURN TO:

John Sullivan Kenny
Attorneys at Law
Kenny & Norine
1923 Court Street
Redding, CA 96001

THE AREA ABOVE IS RESERVED FOR RECORDER'S USE
Exclusive Marketing Agreement between Alan Brownell (“Owner”) and the City of Mt.

Shasta (“City”).

WHEREAS, The City is interested in exploring the possibility of restructuring and revising E. Castle Street between Mt. Shasta Blvd. and Chestnut Street in the City of Mt. Shasta (“Project”); and
WHEREAS, Owner is the owner of properties located on E. Castle Street at 402 N. Mt Shasta Boulevard, APN Numbers: 057-191-180-000, 057-191-150-000 (“the Property”); and WHEREAS The City wishes to ensure that the Property is not sold to anyone other than The City for a period of six months; and
WHEREAS, The City intends to use the six-month period to explore and potential for recurring financing and conducting due diligence on matters related to the Project and to determine the feasibility of acquiring the Property; and WHEREAS, the Owner is asking $900 rent for the Property on a lease that expires August 31st, 2025; and
WHEREAS, The City is willing to pay directly to Owner the rent due on the Property for six months in return for the Owner agreeing not to sell to another during that time; Mt. Shasta City Council Regular Meeting February 12, 2024 79

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AGREEMENT
In consideration of the recitals stated above the Parties agree as follows:
1) Property Restrict
The Property that is the subject of this agreement is shown at Exhibit “A” attached.
2) Restriction Sale
Owner agrees that Owner will not sell, rent, lease or otherwise allow any cloud on the title of the Property for the term of this agreement. Owner further agrees that Owner will negotiate the sale, rental, or lease of the Property exclusively with The City during the term of this agreement.
3) Term
This Agreement will commence when last signed below and will continue until August 31st, 2024.
4) General Liability Insurance
The City agrees to carry General Liability in the amount of $1m single occurrence, and $2m aggregate.
5) Consideration
The City will pay to Owner rental payments in the amount of $900 each month for the months March, 2024 through August 31st, 2024. Rent will be paid by The City at the beginning of each month by regular mail addressed to Owner at 61 Quail Covy Ct. Chico, CA 95973.
6) Complete Agreement
This Agreement represents the complete understanding between the Parties relating to this matter and supersedes all other written or verbal comments concerning this matter.
7) Injunctive Relief
The parties agree that this is a matter of public concern and The City is entitled to injunctive relief if Owner attempts to breach the terms of this Agreement. 8) Law and Venue
Disputes regarding this Agreement will be subject to the law of the State of California and venued in Siskiyou County, California.
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Mt. Shasta City Council Regular Meeting February 12, 2024 80

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///
The Parties agree to the fact stated above and agree to the terms and conditions set forth here.

City Manager or Mayor Date
Owner Date
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of Shasta )
On _____________, 2024, before me, ___________________, Notary Public, personally appeared ____________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that his/her/their signature on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
________________________________________
Notary
Mt. Shasta City Council Regular Meeting February 12, 2024 81

Mount Shasta City CouncilFebruary 12, 2024

Mount Shasta City Council
February 12, 2024