Mount Shasta City Council
June 24, 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: None

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, June 24, 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 June 24, 2024 1 Mt. Shasta Regular City Council Meeting Agenda
Monday, June 24, 2024

CITY COUNCIL BUSINESS

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: June 10, 2024 Regular Meeting
b. Approval of Disbursements: Accounts Payable: 6/13/2024; Total Gross Payroll and Taxes: For Period Ending 6/9/2024
c. Monthly Investment and Revenue Report
d. Committee Minutes: Beautification Committee May 2024

Background: The City Council will discuss a potential increase to the City Manager’s salary, discuss options, and make a decision whether to approve an increase.

Recommended Council Action: Discuss the City Manager’s salary and determine a course of action/direct staff.

Background: Staff will present the operating budgets for all funds for the next two fiscal years. Council will discuss and amend or approve the budgets.

Report By: Muriel Terrell, Finance Director
Recommended Council Action: Staff respectfully requests Council discuss and approve the Proposed Operating Budget All Funds for fiscal years 2024-2025, 2025-2026.

Chestnut
Background: Earlier in 2024, Council directed staff to sub-lease three parcels located at 415 N.

Chestnut Street to perform: commercial appraisals on the parcels as well as phase I analyses. Two of the parcels are undeveloped and unpaved (057-191-180, 157-191-150). The third parcel, numbered 057-191-170, has a structure that served as an automotive repair shop for years.

Report By: Todd Juhasz, City Manager
Recommended Council Action: Staff recommends not purchasing APN 057-191-170, the developed parcel that is located at 415 N. Chestnut Street. Council to discuss whether to purchase the two unpaved parcels that are also located at 415 N. Chestnut based upon the appraised value, limitations on its use, and baseline environmental contamination and direct staff.

Background: Earlier this year, the Fire Department was awarded a CALFIRE vegetation management grant that included the purchase of a skid steer. Along with this grant, the McConnell Foundation donated a trailer to haul the equipment. The City currently has one utility vehicle that is not equipped to tow the trailer. Staff has been actively seeking a buyer for this utility and has received an offer to sell it to the McCloud Fire Department for $35,000. With the sale of this utility pickup and funds available in Measure A, staff is seeking to purchase a new one-ton pickup with tow capacity and a turnover ball for a total amount not to exceed $85,000.

Report By: Todd Juhasz, City Manager
Recommended Council Action: Adopt Resolution CCR-24-XX, a Resolution of the City Council of the City of Mt. Shasta appropriating funds from the Fire Assessment Tax fund not to exceed $85,000 for the purchase of a new utility pickup with tow capabilities and approving the surplus of a 2013 Fire Utility Vehicle.

Mt. Shasta City Council Regular Meeting June 24, 2024 2 4-24
25-35
36-67
68-139
140-142
Mt. Shasta Regular City Council Meeting Agenda
Monday, June 24, 2024

Background: The City Council will discuss various options for general sales tax, public safety tax, or drainage impact fee measures for the November ballot.

Report By: Todd Juhasz, City Manager
Recommended Council Action: Provide direction to staff regarding whether to place a tax and/or drainage fee measure on November’s ballot.

CITY COUNCIL/STAFF REPORTING PERIOD

13. Reports on Outside Meetings

14. Future Agenda Items and Meetings (Appearing on the agenda within 60-90 days):
a. Public Hearing: Amendment to the Short-Term Rental Ordinance – 7/8/2024 b. Public Hearing: Housing Element Amendment – TBD
c. Approval of Funds to Complete a Survey of Washington Avenue – TBD d. Amendment of Parklet Ordinance – TBD
e. Discussion and Possible Action: Beautification Committee Fiscal Review and Project Approval – TBD
f. Graffiti Ordinance – TBD
g. Discussion and Possible Action: Rental, Lease, or Purchase of Lot Located at the northwest corner of Alma and N. Mt. Shasta Blvd – TBD
h. Discussion and Possible Action: Expansion of the Downtown Parking District Borders - TBD i. Discussion and Possible Action: Amendment to Sidewalk Ordinance – TBD j. Discussion and Possible Action: Snow Removal Operations – 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

15. 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 June 24, 2024 3 143
Mt. Shasta City Council Regular Meeting DRAFT Minutes
Monday, June 10, 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, Redmond, Stearns, Clure Council Members Absent: None

3. Special Presentation: None

4. Public Comment:

Betty Kreeger – Comments regarding bus stop bench; request for new bench with informational signage.

Francis Mangels – Comments regarding local food policy, dead and dying trees, and fire concerns.

Vicki Gold – Comments in support of Zoom meetings and remote public participation.

5. Council and Staff Comments:

Todd Juhasz, City Manager – Update on Waste Management and recycling, upcoming Short-Term Rental Ordinance amendment, update on old hospital cleanup, comments regarding The Landing property.

Robert Gibson, Chief of Police – Comments and review of recent active shooter incident. Introduction of Officer Nicholas Manfredonia, comments about his work on a recent case.

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 June 24, 2024 4 City of Mt. Shasta Regular City Council Meeting Minutes Monday, June 10, 2024

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: May 28, 2024 Regular Meeting
b. Approval of Disbursements: Accounts Payable: 5/20, 5/22, and 6/4/2024; Total Gross Payroll and Taxes: For Period Ending 5/26/2024
c. Committee Minutes: Planning Commission March 19, 2024 d. Resolution adopting a list of projects to be funded by SB1 e. Resolution approving hospital landing lights at the existing Mercy Hospital Helipad f. Resolution CCR-24-15, A Resolution Of The City Council Of The City Of Mt. Shasta Determining That Richard G. Joyce Shall Receive Advanced Disability Retirement Payments Monthly Until CALPERS Makes A Determination Regarding His Disability Retirement Application COUNCIL ACTION: Approve items a-f
MOTION TO APPROVE: Clure
SECOND: Redmond
AYES: Stackfleth, Collings, Redmond, Stearns, Clure
NOES: None
ABSENT: None
ABSTAIN: None

8. Public Hearing: Fire Equipment Special Assessments (Measure A) Muriel Terrell, Finance Director – Review of required annual public hearing for the fire assessment.

Clarifying questions from Council.

Public Hearing Open: 5:54 p.m.

Johanna Altorfer – Questions about use of Measure A funds.

Public Hearing Closed: 5:56 p.m.

COUNCIL ACTION: Adopt CCR-24-16, a resolution of the City Council of the City of Mt. Shasta authorizing the special assessments for the fire department equipment funding special tax for the 2024-2025 tax roll and authorizing the Mayor to execute the certification.

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

9. Public Hearing: Stormwater Rate Adjustment
Todd Juhasz, City Manager – Review of the steps leading up to the public hearing for the stormwater rate increase. Review of rate study and amount of proposed increase as well as the formula to determine total cost.

Clarifying questions from Council.

Public Hearing Open: 6:08 p.m.

Jean Nels – Questions about sunset date, inclusion of streets in projects. Comments in support of correcting problems.

Betty Kreeger – Comments expressing concern with the ballot process.

Francis Mangels – Comments in agreement with previous public comment.

Johanna Altorfer – Comments in opposition to increase.

Vicki Gold – Comments in agreement with other speakers, concern about the ballot process.

Public Hearing Closed: 6:26 p.m.

Mt. Shasta City Council Regular Meeting June 24, 2024 5 City of Mt. Shasta Regular City Council Meeting Minutes Monday, June 10, 2024

10. Recess to Count Ballots: 6:27 p.m. - 8:35 p.m.

11. Report on Final Ballot Count
Kathy Joyce, Deputy City Clerk – Report of final ballot count: 247 ballots were received. 20 ballots were disqualified for being a duplicate, having no signature, having no vote marked, or the signature did not match the name of the property owner. Of the remaining ballots, 94 were YES votes and 133 were NO votes; measure fails to pass.

12. Discussion and Possible Action: Next Steps for Stormwater Rates Based on Results of Vote Todd Juhasz, City Manager – Comments about the vote, need for staff to regroup and come back to Council with possible next steps.

Patricia Krogan – Comments regarding City Council salary, vote count, and the Housing Element.

Johanna Altorfer – Comments regarding vote count and suggestions for future stormwater rates.

Molly Brown – Comments in opposition to an unending increase; in favor of another ballot with more options.

Roslyn McCoy – Comments suggesting projects be narrowed down and to be clearer about costs.

Vicki Gold – Comments regarding increases, suggest ballot be made more understandable.

Betty Kreeger – Comments in agreement with other speakers.

Council discussion.

Staff directed to look into alternatives to get a palatable rate increase in place.

13. City Manager Salary
COUNCIL ACTION: Table the item to the June 24th City Council meeting.

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

14. 2024-2025, 2025-2026 Proposed Operating Budgets All Funds Muriel Terrell, Finance Director – Review of proposed operating budget, various funds, shortfall in budget.

Review of transient occupancy tax (TOT) increase and potential future sales tax ballot measure.

Clarifying questions from Council.

Johanna Altorfer – Comments regarding fee increases, in support of maintaining hybrid meetings.

Vicki Gold – Comments regarding the budget, suggestions for future ballots.

Council and staff discussion.

Staff directed to implement some changes to the draft budget and bring it back to Council for approval.

15. Establishment of Appropriations Limits for 2024-2025 Fiscal Year Muriel Terrell, Finance Director – Review of appropriations limits, required by State law.

No public comment.

COUNCIL ACTION: Adopt Resolution CCR-24-17, a resolution of the City Council of the City of Mt. Shasta establishing an appropriations limit for fiscal year 2024-2025 MOTION: Clure
SECOND: Redmond
AYES: Clure, Redmond, Collings, Stearns, Stackfleth
NOES: None
ABSENT: None
ABSTAIN: None

16. Reports on Outside Meetings: None
Mt. Shasta City Council Regular Meeting June 24, 2024 6 City of Mt. Shasta Regular City Council Meeting Minutes Monday, June 10, 2024

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

COUNCIL ACTION: Reviewed items a through o. Items added:
a. Public Hearing: Amendment to the Short-Term Rental Ordinance – 6/24/2024 b. Final Budget Approval – 6/24/2024
c. Discussion and Possible Action: Brownell Property – 6/24/2024 d. Public Hearing: Housing Element Amendment – 7/8/2024 e. Analysis and Report on Options for Recycling – TBD
f. Approval of Funds to Complete a Survey of Washington Avenue – TBD g. Amendment of Parklet Ordinance – TBD
h. Discussion and Possible Action: Beautification Committee Fiscal Review and Project Approval – TBD i. Graffiti Ordinance – TBD
j. Discussion and Possible Action: Rental, Lease, or Purchase of Lot Located at the northwest corner of Alma and N. Mt. Shasta Blvd – TBD
k. Discussion and Possible Action: Expansion of the Downtown Parking District Borders - TBD l. Discussion and Possible Action: Amendment to Sidewalk Ordinance – TBD m. Discussion and Possible Action: Snow Removal Operations – TBD Future Agenda Items Over 90 Days:
n. Discussion and Possible Action: Review of Chapter 13.95 Extraction and Exportation of Groundwater from the City of Mt. Shasta
o. Objective Design Standards Presentation/Discussion

18. Adjourn: There being no further business, the meeting was adjourned at 9:32 p.m.

Respectfully Submitted By: Kathryn M. Joyce, Administrative Assistant/Deputy City Clerk Mt. Shasta City Council Regular Meeting June 24, 2024 7 City Council Agenda Item #7b
Staff Report
Meeting Date: June 24, 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 $422,427.85.

Background & Summary:

Approval of Check Numbers 52460-52506 $ 237,621.68
Total Payroll Distribution $ 92,644.80
Total EFTPS – CalPERS, Nationwide $ 49,867.13
Total Payroll EFTPS Taxes $ 42,294.24
$ 422,427.85
Financial Impact:

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

Attachments:

1.) Check Registers – 6/13/24

2.) ACH Payroll Distribution – 6/13/24

3.) EFTPS Reports – 6/11/24, 6/14/24, 6/18/24
Regular
x Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting June 24, 2024 8 Mt. Shasta City Council Regular Meeting June 24, 2024 9 Mt. Shasta City Council Regular Meeting June 24, 2024 10 Mt. Shasta City Council Regular Meeting June 24, 2024 11 Mt. Shasta City Council Regular Meeting June 24, 2024 12 Mt. Shasta City Council Regular Meeting June 24, 2024 13 Mt. Shasta City Council Regular Meeting June 24, 2024 14 Mt. Shasta City Council Regular Meeting June 24, 2024 15 Mt. Shasta City Council Regular Meeting June 24, 2024 16 City Council Agenda Item # 7c
Staff Report
Meeting Date: June 24, 2024
To: Mayor and City Council
From: Muriel Howarth Terrell, Director of Finance
Subject: Revenue Status Update, Monthly Investment and Financial Report for the Period Ending May 31, 2024
Recommendation:

Staff respectfully requests the City Council review the provided information regarding the City’s revenue and investments.

Background & Summary:

Revenues:

Revenue for this report has been updated to recognize the collections for July 2023 through May 2024 and July 2023 through May 2024 for Sales Tax.

Property Tax Revenue:

The City has received $706,393 in property tax for the current fiscal year. The amount is $58,895 more than the prior year and is $35,393 more than budgeted. There will be a small amount collected between now and the end of the fiscal year.

Sales Tax Revenue:

The City has received $1,227,127 through May 31, 2024 in sales tax for fiscal year 2023-2024 for July 2023- March, 2024. This is $45,840 less than the prior year and a decrease of 3.78%.

July-September 2024 up $23,353
October-December 2024 down ($57,223)
January-March 2024 Down ($11,970)
Transient Occupancy Tax:

The city has received $980,075 in TOT for through May 2024 of fiscal year 2023-2024. The prior year’s amount was $939,296. The amount collected is $40,779 more than the previous year.

Regular
X Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting June 24, 2024 17 2 As of April 30, 2024, the combined funds the City of Mt. Shasta had invested in the Local Agency Investment Fund (L.A.I.F.) totaled $256,884. The May 2024 LAIF statement is attached, along with the performance data for the month of . Most surplus funds over which the City has control are currently invested in ProEquities. The balance of the City’s cash funds are held in the pooled checking account with Tri Counties Bank and LAIF.

Current investment rates are:

L.A.I.F. May 31, 2024 4.332%
Treasury Note – 3 month February 28, 2024 5.37%
Treasury Note – 2 Yr. February 28, 2024 4.62%
Treasury Note – 5 Yr. February 28, 2024 4.21%
Treasury Note – 10 Yr. February 28, 2024 4.20%
Treasury Note – 30 Yr. February 28, 2024 4.24%
Bloomberg as reported by Chandler Asset Management
The LAIF average increased slightly from last month, with the all notes experiencing increases.

We continue to anticipate the LAIF rate slowly increasing staying just above 4%. Short term CD rates are now better than the LAIF rate and longer-term notes may offer better yields it does not give us the liquidity we need. The LAIF rate remains the best available rate that meets the City’s requirement for liquidity and safety.

Financial Impact:

The investments are in compliance with the City’s investment policy and provides for meeting the City’s cash flow needs for the next month and 6 month periods.

Compliance with 2014-17 City Council Strategic Plan:

The City Council’s leadership efforts to ensure adherence to the best possible financial practices and overall transparency falls under Strategic Focus IV – Grow Mt. Shasta Pride and Quality and the Municipal Responsibilities of Progressive Leadership and Financial Health and Economic Opportunity.

Attachments:
• LAIF Monthly Statement
• LAIF Performance Report
• LAIF Monthly Balances
• 2024 Chandler Asset Management April 2024
Mt. Shasta City Council Regular Meeting June 24, 2024 18 Mt. Shasta City Council Regular Meeting June 24, 2024 19 Mt. Shasta City Council Regular Meeting June 24, 2024 20 Mt. Shasta City Council Regular Meeting June 24, 2024 21 Mt. Shasta City Council Regular Meeting June 24, 2024 22 Mt. Shasta City Council Regular Meeting June 24, 2024 23 Beau�fica�on Commitee - Mee�ng Minutes
May 8, 2024; regular mee�ng

1. Call to Order 4:05 PM

2. Roll Call

Present: Lorie Saunders, Terez Mania�s, Brenna Montagne

Absent: Britney Charlesworth, Lynn Linebarger
Guests: Tom Hesseldenz and David Ream

3. Special Presenta�ons and Announcements: none

4. Public Comment:

David Ream: public trash cans. Where are the new ones? Making sure all the old versions will be replaced with the new ones.

5. Mee�ng Minutes: Review and Approval – April
Lorie mo�on to approve, Brenna seconded, all in favor

6. Staff and Member Comments:

Terez: change standing mee�ng �me to later than 4. Will be 4:30 moving forward.

Britney Charlesworth submited a resigna�on leter to the commitee.

7. Discussion and Possible Ac�on: Beau�fica�on commitee project authoriza�ons for rou�ne and new maintenance projects:

Include �meframe when shared with Ken. If over $5,000 will go to bid.

What to move forward with? Castle fountain area, addi�onal planters, addi�onal trash cans to fully replace all. Was decided that 3 more cans to complete the change out from the old version and looking at op�ons for Castle fountain area would be best at this �me.

8. Discussion and possible ac�on: Follow-up budget remaining for current fiscal year Was combined with item 7 on the agenda.

9. Discussion and possible ac�on: Castle Street rehabilita�on, waterfall, pavers, etc.

Tom provided an overview of where the Castle street/creek project is. Terez to work with Tom.

10. Discussion and possible ac�on: Street planters
Moved to June mee�ng

11. Discussion and possible ac�on: Enhancing volunteer numbers Moved to June mee�ng

12. Discussion and possible ac�on: Long-term Beau�fica�on goals Moved to June mee�ng

11. Adjourn Mee�ng 5:20 PM Next mee�ng June 11th
Mt. Shasta City Council Regular Meeting June 24, 2024 24 AGREEMENT BETWEEN TODD JUHASZ AND THE CITY OF MT. SHASTA

FOR EMPLOYMENT OF CITY MANAGER
This Employment Agreement ("Agreement") is made and entered into this day of September 2021 ("Effective Date"), by and between the City of Mt. Shasta (the "City"), a municipal corporation, and Todd Juhasz ("Employee"), an individual.

RECITALS
WHEREAS, the City requires the services of a person with proven executive and administrative qualifications to fill the position of City Manager; and WHEREAS, the City, acting by and through its City Coimcil, desires to appoint Todd Juhasz to the position of City Manager.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:

TERMS

1. Appointment of City Manager:

The City Council of the City ("City Council") hereby appoints Employee to the position of City Manager, in and for the City of Mt. Shasta, California, and Employee accepts such appointment and employment.

2. Term of Agreement:

This Agreement is for a Term of five (5) years from the Effective Date, as defined above.

3. At-Will Emplovment:

Employee is an "at will" employee who shall serve at the pleasure of the City Council. Accordingly, the City Council may terminate Employee's employment at any time, >vith or without cause. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from his position with the City, subject only to the provisions set forth in Section 6 of this Agreement.

4. Duties and Responsibilities:
a. Employee shall commence his duties on or before November 15, 2021. b. Employee shall serve as the City Manager of the City and he shall be vested with the powers, duties and responsibilities set forth in Chapter 2.50 of the Mt. Shasta Municipal Code and California law. Employee shall perform the functions and duties specified under the

Mt. Shasta City Council Regular Meeting June 24, 2024 25 laws of the State of California; the Ordinances and Resolutions of the City; and such other duties and functions as the City Council may from time-to-time assign. c. Employee agrees to devote all of his productive time, ability and attention to the City's business. For the duration of this Agreement, Employee shall not hold secondary employment, and shall be employed exclusively by the City, subject to any exceptions approved in writing by the City Council. Provided, however, that Employee has the right to volunteer for such nonprofit organizations as he may see fit; and further provided that such volunteer services shall not interfere with his work duties on behalf of the City. d. Employee is an exempt employee for purposes of the federal Fair Labor Standards Act. Employee shall not receive overtime or extra compensation for work performed outside normal business hours.

5. Compensation:
a. Employee shall be paid an annual base salary of One Hundred Forty Thousand Dollars ($140,000.00). ("Total Base Salary"), pro-rated and paid every two weeks on regular employee pay days.
b. The City Council agrees to annually evaluate the Employee's performance.

In the event Employee receives a satisfactory evaluation. Employee will receive a one percent (1.00%) increase in Total Base Salary in years one and two and a mutually agreed percentage thereafter.
c. Employee shall receive the benefits identified in Exhibit A to this Agreement in addition to the Total Base Salary.

6. Termination of Emplovment and Severance:
a. Employee may terminate this Agreement at any time upon sixty (60) days written notice to City. During the notice period, all the rights and obligations of the parties under this Agreement shall remain in full force and effect.
b. The City Council may terminate this Agreement at any time with good cause, or without cause.
c. In the event City terminates this Agreement 'without cause, the City shall pay Employee severance in a sum equal to four (4) months Total Base Salary (as such Total Base Salaiy may have then been adjusted pursuant to Section 5) if termination is in the first, second or third year of this Agreement. If termination occurs thereafter, the City shall pay employee severance of two (2) months of Total Base Salary. This severance is subject to the restrictions set forth in Government Code section 53260, including, without limitation, that the maximum amount of severance pay that Employee may receive shall not exceed an amount equal to that portion of the Total Base Salary paid monthly, multiplied by the number of months left on the unexpired Agreement. And further provided that, pursuant to Government Code section 53243.2, any cash settlement related to the termination of this Agreement received by Employee from City shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of

Mt. Shasta City Council Regular Meeting June 24, 2024 26 his office or position while employed by the City.

In the event City terminates this Agreement, Employee shall be entitled to continued medical and dental benefits at his cost pursuant to the provisions of the federal Consolidated Omnibus Budget Reconciliation Act (COBRA).
d. Notwithstanding any provision in this Agreement to the contrary, the City shall not terminate this Agreement within six (6) months following a general municipal election except by 4/5 votes of the City Council.
e. Notwithstanding any provision in this Agreement to the contrary, the City Council may at any time immediately terminate this Agreement "for good cause." If Employee is terminated for cause, the City shall not be required to pay any severance under this Agreement.

Good cause means:

1. Conviction of any felony that adversely affects the reputation of either the City or Employee.

2. Conviction of a misdemeanor arising out of Employee's duties under this Agreement and involving a willful or intentional violation of law.

3. Any willful abandonment of duties; or

4. Any conduct which violates the City's Personnel Rules and for which a City employee may be terminated.

Good cause shall also include, but not be limited to, the permanent disability of Employee, or the Employee becoming otherwise unable to perform the duties of her employment, by reason of sickness, accident, illness, injury, mental incapacity or health for a period of six (6) weeks following the exhaustion of all available leave balances and any applicable Family Medical Leave Act or California Medical Leave Act leaves, or where the same occurs for forty (40) working days over a sixty (60) working day period following the exhaustion of such leaves. f. Notwithstanding any provision in this Agreement to the contrary, the City Council may suspend Employee with full pay and benefits at any time during the term of this Agreement.

7. Review and Evaluation:

In addition to the annual evaluation set forth in Section 5(b), City Council may imdertake performance review or evaluation of Employee at any time in its sole discretion.

8. Indemnification:

The City shall defend, hold harmless and indemnify Employee against any tort, civil rights, personnel, discrimination, professional liability claim or demand or other legal action, arising out of an alleged act or omission occurring in the performance of Employee's duties in accordance with the provisions of Government Claims Act and California Government Code Section 825 and shall provide a defense to Employee in accordance with Government Code Section 995. The City may decline to defend and/or indemnify Employee only as permitted by the California Government Code. The City may compromise and settle any such claim or suit and

Mt. Shasta City Council Regular Meeting June 24, 2024 27 pay the amount of any resulting settlement or judgment. Provided, however, that the City's duty to defend and indemnify shall be contingent upon Employee's good faith cooperation with such defense.

9. Notices:

Any notice required under this Agreement shall be in writing and personally delivered, or sent by certified mail (return receipt requested and postage prepaid), or overnight delivery to the following:

City: City of Mt. Shasta
c/o City Clerk
City Hall
305 N. Mt. Shasta Blvd.

Mt. Shasta, California 96067-2231
With a copy to: City Attorney
c/o John S. Kenny
Kenny & Norine
1923 Court Street
Redding, CA 96001
Employee: Todd Juhasz
4341 Risstay Way
Shasta Lake, CA 96019
Either Party may change its mailing address at any time by giving written notice of such change to the other Party. All notices under this Agreement shall be deemed given, received, made or communicated on the date personal delivery is affected or on the delivery date or attempted delivery date shown on the return receipt or air bill, whichever is earlier.

10. Arbitration:
a. Any controversy or claim arising out of or relating to this Agreement or the breach thereof, or arising out of or relating to Employee's employment or termination thereof, including but not limited to claims of employment discrimination based on federal and state law, which cannot be resolved among the parties themselves, shall, on the written request of either party served on the other within the applicable statute of limitations, be submitted and resolved by final and binding arbitration. Service of the written request for arbitration shall be made only by certified mail, with a return receipt requested. Time is of the essence; if the request is not served within a one-year period after the cause of action arises or the termination of this Agreement, whichever is earlier, then the complaining party's claim(s) shall be forever waived and barred before any and all forums, including, without limitation, arbitration or judicial forums. b. The Arbitrator shall have no authority to alter, amend, modify or change any of the terms of this Agreement, unless a provision expressly conflicts with applicable federal or

Mt. Shasta City Council Regular Meeting June 24, 2024 28 state laws. Any arbitrator selected under this provision shall have the express authority to consider statutory violations of federal and state law in addition to disputes involving this Agreement. The decision of the Arbitrator shall be final and binding and judgment therein may be entered in any court having jurisdiction over the dispute. c. The Arbitration shall be conducted under the National Rules for the Resolution of Employment Disputes of the American Arbitration Association ("AAA") current at the time of the dispute. In the event that such rules are determined to be in conflict with federal or state law, then the arbitrator shall have the authority to amend them accordingly. The City shall be responsible for paying all the AAA's administrative and arbitrator's fees. In all other respects, the parties shall bear their own attorneys' fees and costs except as otherwise required by law. The parties shall have the right to conduct discovery which provides them with access to documents and witnesses that are essential to the dispute, as determined by the arbitrator. The arbitrator's written award shall include the essential findings and conclusions upon which the award is based.
d. The parties intend that this arbitration procedure is mandatory and shall be the exclusive means of resolving all disputes whether foxmded in fact or law between Employee and the City and/or its employees, elected officials, directors, agents, officers or managers arising out of or relating to this Agreement, the parties' employment relationship and/or the termination of that relationship, including, but not limited to, any controversies or claims pertaining to wrongful or constructive discharge, violations of the covenant of good faith and fair dealing, implied contracts, public policies, anti-discrimination statutes or any employment related statutes. e. Nothing in this Agreement shall be deemed to waive any requirement to file a claim against the City under the terms of the Government Claims Act or other provisions of law.
f. Each party shall bear its own cost and attorney's fees in any such action.

THE PARTIES ACKNOWLEDGE THAT BY ADOPTING ARBITRATION THEY HAVE

IN EFFECT WAIVED ANY CONSTITUTIONAL OR STATUTORY RIGHT TO HAVE

ANY SUCH DISPUTE DECIDED IN A COURT OF LAW AND/OR BY A JURY IN A COURT PROCEEDING.

11. Bonding:

The City shall bear the full cost of any fidelity or other bond required under any law or ordinance.

12. Miscellaneous:
a. The text herein shall constitute the entire agreement between the parties.

This Agreement may not be modified, except by written agreement executed by both parties. b. This Agreement is severable. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall

Mt. Shasta City Council Regular Meeting June 24, 2024 29 remain in full force and effect.
c. This Agreement shall be governed by the laws of the State of California. d. The parties agree that any ambiguity in this Agreement shall not be construed or interpreted against, or in favor of, either party. e. Time is of the essence of this Agreement.
f. This Agreement is the result of negotiation between the parties and shall not be interpreted for or against either party as the author. g. This Agreement may be executed in counterparts containing original signatures.

IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and Employee has signed and executed this Agreement, on the day and year written below.

EMPLOYEE:

DATED; /
ATTEST:

DATED:

V// ,2021
CITY:

DATED: ,2021
2021

TODD JUHASZ
John Redmond, Mayor
athryn Jbyce^, D6pi^ City Clerk
APPROVED AS TO FORM:

DATED: /£/ //^ , 2021
JOHN S. KENNY, City Attorney

Mt. Shasta City Council Regular Meeting June 24, 2024 30

EXHIBIT A

OTHER EMPLOYEE BENEFITS
Employee shall receive during his employment with the City the following benefits:

1. Time-off
Employee shall be entitled to all holidays received by regular City employees.

2. Vacation
Upon execution of this Agreement, Employee will be given 40 hours of vacation time. Thereafter vacation shall accrue at a rate of 10 hours per month until employee has accrued 240 hours at which time vacation will cease accruing.

3. Administrative Leave
Employee shall be given 10 days of administrative leave upon execution of this Agreement and on each July 1 thereafter, provided however that administrative leave unused during the prior year may not be carried over.

4. Health Plan
The City will contribute up to One Thousand Five Hundred Sixty-six dollars and sixty-six cents ($1,566.66) per month for the Teamsters Family health plan to be acquired by Employee.

5. Life Insurance
The City will pay the premiums for a Fifteen-Thousand-doIlar ($15,000) life insurance plan for Employee.

6. Memberships and Development
The City shall maintain League of California Cities membership and pay for other professional development as the City budget allows.

7. Travel Expenses
The City shall pay all reasonable travel and other expenses incurred by Employee in the exercise of his responsibilities and duties.

END OF EXHIBIT
#3737
4840-3051-3914, v. 1

Mt. Shasta City Council Regular Meeting June 24, 2024 31 Mt. Shasta City Council Regular Meeting Minutes
Monday, February 13, 2023; 5:30 p.m.

City Park Upper Lodge 1315 Nixon Road, Mt. Shasta
Meeting allowed for virtual attendance via ZOOM
Approved as Submitted March 13, 2023
“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 Clure called the meeting to order and led the audience in the flag salute.

2. Roll Call:

Council Members Present: Redmond, Clure, Stearns, Collings, Stackfleth Council Members Absent: None

3. Special Presentations: None

4. Public Comment:

David Ream – Held a sign opposed to elder abuse.

5. Council and Staff Comments:

Todd Juhasz, City Manager – Comments regarding receivership of The Next and the old hospital, update on the process.

Tim Stearns, Councilmember – Comments regarding the receivership hearing.

Todd Juhasz, City Manager – Comments regarding upcoming presentation to Council regarding the one-way couplet and daylighting of Castle Creek; updates regarding meeting with County about Enhanced Infrastructure Financing Districts, parklet ordinance, vegetation removal on City property.

Clarifying questions from Council.

Robert Gibson, Chief of Police – Comments regarding purchase of a new K-9.

Tim Stearns, Councilmember – Comments regarding the point in time homeless survey, future budget item.

John Stackfleth, Mayor Pro Tem – Comments regarding Collier Interpretive and Information Center board meetings.

Mt. Shasta City Council Regular Meeting June 24, 2024 32 City of Mt. Shasta Regular City Council Meeting Minutes Monday, February 13, 2023

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

CITY COUNCIL BUSINESS

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: January 23, 2023, Regular and Special City Council Meetings b. Approval of Disbursements: Accounts Payable 1/18, 1/27, and 2/7/2023; Total Gross Payroll and Taxes: For Period Ending 1/22/2023
c. Second Reading and Adoption of Ordinance CCO-22-01, An Ordinance of the City Council of the City of Mt. Shasta Adopting Chapter 5.50, Short-Term Rentals d. Police Department Report January 2023
e. City Manager’s Report February 8, 2023
MOTION TO APPROVE: Stackfleth
SECOND: Redmond
AYES: Redmond, Collings, Stearns, Stackfleth, Clure
NOES: None
ABSENT: None
ABSTAIN: None

8. Adoption of Urgency Ordinance CCO-23-XX Establishing A Moratorium on the Issuance of New Bed & Breakfast Business Licenses Within City Limits Pending Further Study Todd Juhasz, City Manager – Review of staff report, bed and breakfasts, recommended moratorium.

Public Hearing Open: 5:55 p.m.

Peggy Risch – Comments in support of the moratorium.

Hiton Patel – Questions seeking information about the short-term rental ordinance.

Public Hearing Closed: 5:56 p.m.

COUNCIL ACTION: Adopt Urgency Ordinance CCO-23-02 Establishing A Moratorium on the Issuance of New Bed & Breakfast Business Licenses Within City Limits Pending Further Study MOTION: Stearns
SECOND: Stackfleth
AYES: Redmond, Collings, Stearns, Stackfleth, Clure
NOES: None
ABSENT: None
ABSTAIN: None

9. 2022-2023 Mid-Year Budget Review and Revisions
Muriel Terrell, Finance Director – Review of mid-year budget, revisions, projections, and deficit. Suggestions for increasing revenue.

Mt. Shasta City Council Regular Meeting June 24, 2024 33 City of Mt. Shasta Regular City Council Meeting Minutes Monday, February 13, 2023

Clarifying questions from Council.

Peggy Risch – Comments regarding development impact fees.

Council discussion.

COUNCIL ACTION: Adopt Resolution CCR-23-02, A Resolution of the City of Mt. Shasta Adopting a Revised Operating Budget for Fiscal Year 2022-2023
MOTION: Stearns
SECOND: Stackfleth
AYES: Redmond, Collings, Stearns, Stackfleth, Clure
NOES: None
ABSENT: None
ABSTAIN: None

10. Discussion and Possible Action: renewal of the 22 Avenue contract for hybrid meetings Todd Juhasz, City Manager – Brief review of the item and review of previous discussion.

Clarifying questions from Council.

Jeremy Flynn, 22 Ave – Comments regarding audio fidelity, quality of bandwidth, and acoustics. Review of challenges in the space.

Greg Messer – Comments regarding cost of the contract, request to put the project out to bid.

Johanna Altorfer – Comments in support of hybrid meetings, looking at alternatives.

Council discussion.

COUNCIL ACTION: Extend the contract with 22 Avenue to June 30th and to put the service out to competitive bid in compliance with the bid process.

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

11. Discussion and Possible Action: City Manager Contract Amendment Jeffrey Collings, Councilmember – Review of recommendation to increase the City Manager’s salary to be in line with the City Manager of Weed.

Clarifying questions from Council and discussion.

COUNCIL ACTION: Effective March 1, 2023, the City Manager’s base salary will be $150,400 per annum, paid as other employees are every two weeks, and allocated accordingly.

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

12. Discussion and Possible Action: Mt. Shasta Fuel Reduction Project Todd Juhasz, City Manager – Review of staff report, proposals for fuel reduction at the Orchard and Landing properties. Review of process of vegetation removal.

Clarifying questions from Council.

Johanna Altorfer – Comments regarding standards for fuel removal, defensible space. In opposition to proposal.

Council discussion.

COUNCIL ACTION: Approve removal of 100 feet of vegetative fuel on the Orchard and Landing properties, Plan A, and award the contract to Roll ‘N’ Rock Construction.

MOTION: Stackfleth
SECOND: Redmond
Mt. Shasta City Council Regular Meeting June 24, 2024 34 City of Mt. Shasta Regular City Council Meeting Minutes Monday, February 13, 2023

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

13. Reports Re: Outside Meetings: None

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

COUNCIL ACTION: Reviewed items a through i.
a. Special Meeting to Interviews and Appoint Committee Members – 2/27/2023 b. Military Equipment Annual Report – 2/27/2023
c. Resolution Setting Short-Term Rental Fees – 2/27/2023 d. Extending the Moratorium on Bed & Breakfast Licenses (if needed) – 3/27/2023 e. Amendment to Ordinance 18.91 Cannabis Industry Land Use - TBD f. Ordinance Regulating Outdoor Dining – TBD
g. Discussion and Possible Action: McCloud Avenue Parking Prohibition – TBD h. Feasibility and Cost Study for One-Way Couplet - TBD Future Agenda Items Over 90 Days:
i. 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 7:07 p.m.

Respectfully Submitted By: Kathryn M. Joyce, Administrative Assistant/Deputy City Clerk Mt. Shasta City Council Regular Meeting June 24, 2024 35 DATE: June 24, 2024
TO: Mayor Stackfleth and City Council
FROM: Finance Director Terrell
SUBJECT: 2024-2025, 2025-2026 Final Operating Budgets All Funds RECOMMENDATION:

We respectfully request Council discuss and approve the Proposed Operating Budgets All Funds for fiscal years 2024-2025, 2025-2026.

BACKGROUND:

General Fund:

Our City relies heavily on Sales Tax and Transient Occupancy Taxes (TOT) they are represented below for comparison purposes.

Pre-COVID actual 2018-2019 TOT $821,454 Sales Tax $1,260,633 Actual 2019-2020 TOT $727,545 Sales Tax $1,287,491
Actual 2020-2021 TOT $1,037,318 Sales Tax $1,523,959
Actual 2021-2022 TOT $1,186,841 Sales Tax $1,665,866
Actual 2022-2023 TOT $1,254,916 Sales Tax $1,693,783
Budgeted 2023-2024 TOT $1,224,000 Sales Tax $1,724,000
Budgeted 2024-2025 TOT $1,468,000 Sales Tax $1,760,000
Budgeted 2025-2026 TOT $1,475,000 Sales Tax $2,500,000
For fiscal year 2023-2024 General Fund revenues are estimated at $6.180 million, which is approximately $365,180 higher than the 2022-2023 actuals. The new 2024-2025 budget includes projected increases in the TOT due to the voter approved increase to the TOT rate, total revenue comes in at $6.409 million. The 2025-2026 budget begins with no change in sales tax then shows a 1% increase in the modification column to show the expected difference if a change is approved by the voters, with a one percent sales tax increase revenue for the general fund comes in at $6.906 million.

In determining expenditures for the General Fund, we start with employee and benefit costs as a starting point. The authorized positions worksheet is a required part of developing the budget and incudes the increases already approved by Council. Union negotiations begin in April of 2024 and the union requests were rejected. There are pending grants that may increase fire positions and this too is not a part of this budget. Each department head then developed all other costs within their departments using historical data. The first attempt for the 2024-2025 budget was returned to staff to reduce the projected budget shortfall of $310,000 to zero. We have made Mt. Shasta City Council Regular Meeting June 24, 2024 36 reductions in several areas that include the reduction of one fire chief position, a mandated reductions in overtime in both fire and police, reallocation of insurance, no transfer to the equipment replacement fund, a reversal of the Council stipend back to the previous amount, and a reduction of the 22nd Avenue contract for hybrid meeting live meeting broadcast to recorded meetings. While those reductions did reduce the shortfall to zero there have been several other increases and modifications that now makes the shortfall in the $50,000 range. Those changes include an increase to workers compensation, a modification to the 22nd Avenue contract to record meetings rather than live meeting broadcasts, the hiring of a new Finance Director while the old Director stays on for a short time for training, an increase for towing fees, and a net zero change for the Youth Conservation Crew and the Fire Grant.

The transfer from Gas Tax for Snow Removal is anticipated to be about $40,000, which is much less than the previous year due to the snow season we had this year. We expect the administrative cost allocation to be in the $350,000 range. In total General Fund expenditures are projected at $6.462 million.

The General Fund is projected to have a carryover of around $1.539 million. This creates a reserve of about 24.06% going into the 2024-2025 fiscal year. With a projected loss of around $50,000 for the 2024-2025 fiscal year that leaves $1.487 million carryover and a 23.20% reserve going into 2025-2026.

For the 25-26 projected budget year I have begun by using projected revenue fairly close to where it was projected in 24-25 in the preliminary column. Then we show changes for a 1% sales tax increase, and a 2 ½ percent increase to salaries. Any other large changes are for net zero revenue and expenses for already awarded grants. The result of no sales tax or salary increases the loss is in the $141,000 range. If those increases are realized, then the result is a positive net of approximately $526,000.

Enterprise Funds:

In the Drainage Fund the unsuccessful rate increase has taken the fund back to revenue and expenses of $25,000. The shortfall for the contract labor for this analysis will be made up by the Drainage Improvement fund, general fund economic enhancement fund in the current fiscal year 2023/2024.

In the Solid Waste Fund, we are continuing negotiations between the City and Waste Management to determine which entity will be billing for the continued service provided by Waste Management. We anticipate this coming to Council soon.

In the Water and Wastewater funds budgets reflect the rate increases as specified in the rate studies. In the Wastewater fund an additional employee was budgeted as a part of the study and has been reflected in this budget as well as the previous budget. There are no projects expected in fiscal year 2024-2025.

Special Revenue Funds
Mt. Shasta City Council Regular Meeting June 24, 2024 37 In the Gas Tax and Transportation Funds we had anticipated approximately $500,000 to $750,000 in construction to occur this summer into fall of 2024, however Siskiyou County road crews are not available for the fiscal year 2024-2025 schedule. The city has now shifted focus and intends to use gas tax, STIP and LTC funding to overlay portions of Mt. Shasta Blvd. The North Mt. Shasta Blvd. project is budgeted at $410,000 coming out of STIP, and gas tax in the 24/25 budget year, The South Mt. Shasta Blvd. overlay project is budgeted for $512,000 and comes out of gas tax and LTC in the 25/26 fiscal year.

In the CDBG for Food and Subsistence programs have been completed with the only current funding to be for Senior Snow Removal.

For the Brownfield removal of the stockpiled soil at the old Roseburg has been and the site is currently doing surveys to determine deed restrictions on portions of the property.

In the rest of the special revenue funds, they are consistent from year to year and are reflected as such.

Mt. Shasta City Council Regular Meeting June 24, 2024 38 RESOLUTION CCR-24-XX

A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA

ADOPTING AN OPERATING BUDGET FOR
FISCAL YEAR 2024-2025 AND 2025-2026 AND APPROVING

AUTHORIZED POSITIONS FOR THE FISCAL YEAR
WHEREAS, the City Council has conducted a meeting to develop a proposed budget for the 2024-2025 and 2025-2026 fiscal years; and
WHEREAS, staff has estimated the probable carry-overs from the 2023-24 fiscal year and incorporated them into the 2024-2025 fiscal year proposed operating budget; and WHEREAS, the City Council, after thoroughly studying the options, has taken actions to balance the available resources and required expenditures estimated for the upcoming fiscal year and those actions have been incorporated into the Operating Budget for fiscal year 2024-2025 and 2025-2026.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mt. Shasta that the City of Mt. Shasta 2024-2025 and 2025-2026 Operating Budgets attached hereto is adopted appropriating resources to authorize expenditures during the 2024-2025 and 2025-2026 fiscal years.

BE IT FURTHER RESOLVED AS FOLLOWS:

1. That Department Heads with the approval of the City Manager may transfer funds between line items within budgeted expenditure blocks without prior Council approval; however, any transfers to or from line items for personnel, capital outlay, or non-budgeted purposes, and any additional expenditures from the contingency reserves shall be made by new Council appropriations.

2. That the listing of City of Mt. Shasta Authorized Positions 2024-2025 is hereby approved and made a part of the City of Mt. Shasta Fiscal Year 2024-2025 Operating Budget.

The foregoing Resolution was Approved and Adopted at a regular meeting of the City Council of the City of Mt. Shasta on the 24th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: June 24, 2024
CITY OF MT. SHASTA

John Stackfleth, Mayor
ATTEST:

Kathryn Joyce, Deputy City Clerk
Mt. Shasta City Council Regular Meeting June 24, 2024 39 Mt. Shasta City Council Regular Meeting June 24, 2024 40 Mt. Shasta City Council Regular Meeting June 24, 2024 41 Mt. Shasta City Council Regular Meeting June 24, 2024 42 Mt. Shasta City Council Regular Meeting June 24, 2024 43 Mt. Shasta City Council Regular Meeting June 24, 2024 44 Mt. Shasta City Council Regular Meeting June 24, 2024 45 Mt. Shasta City Council Regular Meeting June 24, 2024 46 Mt. Shasta City Council Regular Meeting June 24, 2024 47 Mt. Shasta City Council Regular Meeting June 24, 2024 48 Mt. Shasta City Council Regular Meeting June 24, 2024 49 Mt. Shasta City Council Regular Meeting June 24, 2024 50 Mt. Shasta City Council Regular Meeting June 24, 2024 51 Mt. Shasta City Council Regular Meeting June 24, 2024 52 Mt. Shasta City Council Regular Meeting June 24, 2024 53 Mt. Shasta City Council Regular Meeting June 24, 2024 54 Mt. Shasta City Council Regular Meeting June 24, 2024 55 Mt. Shasta City Council Regular Meeting June 24, 2024 56 Mt. Shasta City Council Regular Meeting June 24, 2024 57 Mt. Shasta City Council Regular Meeting June 24, 2024 58 Mt. Shasta City Council Regular Meeting June 24, 2024 59 Mt. Shasta City Council Regular Meeting June 24, 2024 60 Mt. Shasta City Council Regular Meeting June 24, 2024 61 Mt. Shasta City Council Regular Meeting June 24, 2024 62 Mt. Shasta City Council Regular Meeting June 24, 2024 63 Mt. Shasta City Council Regular Meeting June 24, 2024 64 Mt. Shasta City Council Regular Meeting June 24, 2024 65 Mt. Shasta City Council Regular Meeting June 24, 2024 66 Mt. Shasta City Council Regular Meeting June 24, 2024 67 City Council Agenda Item #10
Staff Report
Meeting Date: 6/24/2024
To: Mayor and City Council
From: Todd Juhasz, City Manager
Subject: Direction on whether to pursue purchasing parcels at 415 N.

Chestnut.

Recommended Action: Staff recommends not purchasing APN 057-191-170, the developed parcel that is located at 415 N. Chestnut Street. Council to discuss whether to purchase the two unpaved parcels that are also located at 415 N. Chestnut based upon the appraised value, limitations on its use, and baseline environmental contamination.

Background:

Earlier in 2024, Council directed staff to sub-lease three parcels located at 415 N. Chestnut Street to perform: commercial appraisals on the parcels as well as phase I analyses. Two of the parcels are undeveloped and unpaved (057-191-180, 157-191-150). The third parcel, numbered 057-191-170, has a structure that served as an automotive repair shop for years.

Phase 1 Environmental Results:

From the Executive Summary:

This Phase I Environmental Site Assessment (ESA) addresses Siskiyou County Assessor’s Parcel Numbers (APNS) 057-191-150, -170, and -180, located at 415 N. Chestnut Street in Mt. Shasta, Siskiyou County, California. Historical research conducted for this assessment indicates that the subject property was developed with two residences located at 6 and 8 Chestnut Street from at least 1889 to 1896. Both of these residences were destroyed in the fire of 1896. A new residence and sheds were located on the northwestern portion of the subject property at 8 and 9 Chestnut Street from at least 1897 to 1912. The sheds were removed from this portion of the property by 1929; however, the residence remained under a new address of 316 Chestnut Street and later 415 Chestnut Street until 1972. Two residences, sheds, and a stable were located on the southeastern portion of the subject property at 13 and 14 Chestnut Street from at least 1905 to 1972. The stable was converted into a room and carriage house by 1912, and used as a room and shed from at least 1929 to 1934. The addresses of these residences were changed to 308 and 310 Chestnut Street by 1929, and the residence at 308 Chestnut Street was used as a Chinese Doctor’s office in 1934. A small residential garage was located on the central portion of the subject property adjacent to the residence at 310 Chestnut Street from at least 1929 to 1957. All remaining residential structures were demolished and removed from the subject property in 1972. A commercial building was constructed on the northwestern portion of the subject property around 1977, and was occupied by the following tenants:

X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting June 24, 2024 68 1982 to 1989: Mt. Shasta Tire & Auto
1990 to 1992: Andy’s Transmission & Beacon Service (Automotive Transmission Repair Shop), Carlsons Car Care, and Mt. Shasta Volkswagen 1993 to 2001: John’s Garage
2001 to 2006: Dave’s Quality Auto Care (Dave Hamilton)
2006 to 2015: Mt. Shasta Customs Service Center (Mt. Shasta Customs Inc.) 2013 to 2023: Bjers Auto Repair (Bjers Modern and Classic Auto Repair) A 300-gallon waste oil aboveground storage tank (AST) was installed adjacent to the southwestern end of the building around 1982. A 550-gallon stove oil underground storage tank (UST) was closed in place and filled with sand slurry in January 1988. A 550-gallon waste oil UST was closed in place and filled with concrete slurry in November 1988. The locations of the two USTs on the subject property are not known.

The area adjacent to the southeast of the building was paved from at least 1983 to 2024, and the majority of the southeastern portion of the subject property remained unpaved from 1983 to 2024. Numerous vehicles were parked on the paved and unpaved portions of the subject property from at least 2009 to 2020 in connection with the use of the subject property as an auto repair facility. No significant data gaps or data failures were encountered during the course of this assessment.

The subject property currently contains a vacant commercial building and paved and unpaved parking areas. Remnants of old underground hoists were observed in the concrete floor of the former service bays. Floor drains were observed in the service bay area. The floor drains appeared clogged with sludge, and pooled liquid was present at the surface of the floor drains. A floor grate of unknown origin was observed in the service bay area. One plastic 55-gallon drum containing an unidentified substance was observed in the service bay area.

A 300-gallon waste oil AST is located adjacent to the southwestern end of the building. An old parts washer was observed in the AST containment basin. The concrete and masonry block containment basin was observed to be filled to overflowing with a dark liquid, presumably partially rainwater and snow melt. A 55-gallon drum of waste antifreeze was observed adjacent to the southwestern end of the building. Aside from the underground hoists, no vent pipes, fill pipes, or access ways indicating USTs at the subject property were observed.

One hundred and fifty-two (152) federal, state, local, tribal, and proprietary records databases were reviewed for this assessment. The subject property was identified on several database as a hazardous material use, storage, and release site.

A historical Leaking Underground Storage Tank (LUST) case for the subject property was identified under the name of Mt. Shasta Tire & Auto at 415 Chestnut Street. A soil sample collected during the closure of the 550-gallon waste oil UST in November 1988 was found to contain total petroleum hydrocarbons (TPH) gasoline and TPH diesel.

The Regional Water Quality Control Board (RWQCB) determined that this contamination could not have come from the subject site, and this LUST case received Mt. Shasta City Council Regular Meeting June 24, 2024 69 regulatory agency closure in October 1989.

All other database listings for the subject property pertain to hazardous materials used and stored on the subject property in connection with the historical use as an automobile repair and service facility from approximately 1977 to 2023. No institutional controls or engineering controls were identified for the subject property. No oil or gas wells were identified on the subject property. The search of regulatory lists for hazardous material sites in the vicinity of the subject property did not identify any obvious potential offsite sources of contamination within the ASTM-specified approximate minimum search distances of the subject property. Based on the research conducted for this assessment, it is ENPLAN’s opinion that the following recognized environmental conditions (RECs) were identified for the subject property:

1. Remnants of old underground hoists were observed in the concrete floor of the former service bays. The underground hoists were installed around 1977.

It is not known if the hydraulic oil reservoirs were drained, or if they have had any significant leaks over the years. Based on the shallow depth to at the subject property (approximately 6 feet below the ground surface), there is a potential for both soil and groundwater contamination.

2. A 300-gallon waste oil AST was installed adjacent to the southwestern end of the building around 1983. The containment basin was observed to be filled to overflowing with a dark liquid, presumably partially rain water and snow melt.

Numerous historical violations were reported pertaining to the upkeep of the waste oil tank area, particularly between 1993 and 2001. It is not known if any significant spills or leaks have occurred in this area.

3. The unpaved portions of the subject property have been used to store vehicles in connection with the historical use of the subject property as an auto repair facility. It is not known if any significant spills or leaks of automotive fluids occurred in the unpaved portions of the subject property.

ENPLAN recommends soil and groundwater sampling and analysis to determine if any significant petroleum hydrocarbon-based contamination is present due to the past use of the subject property as an automobile repair facility. For safety purposes, prior to drilling, ENPLAN recommends that a ground penetrating radar or similar survey be conducted on the subject property, to map the locations of the two existing closed USTs, the underground hoists, and any utilities that may be present beneath the subject property.

Based on the research conducted for this assessment, it is ENPLAN’s opinion that the following historical REC was identified for the subject property:

1. Soils contaminated with TPH gasoline and TPH diesel were identified during the closure of a 550-gallon waste oil UST on the subject property in 1988. The RWQCB determined that this contamination could not have come from the subject property, and the LUST case was closed in October 1989. No documentation was found to indicate that the source was Mt. Shasta City Council Regular Meeting June 24, 2024 70 ever identified. No further environmental investigation of the gasoline and diesel contaminated soils on the subject property was required.

No controlled RECs were identified for the subject property during the course of this assessment. This opinion is based on the information provided to ENPLAN during the course of this assessment. Any data that is missing or was withheld from ENPLAN could alter our opinion.

Discussion Regarding APN 057-191-170
Ryan Valuations was hired to conduct commercial appraisals for the three parcels. For the structure built upon APN 057-191-170, Ryan Valuations is finalizing the appraisal which will take into account the value of the property if there was no contamination and the property could be used to its highest and best use in its contaminated state.

As part of this valuation, TerraTactix, Inc- an environmental remediation firm. provided an estimate of $400,000 to $500,000 for the environmental remediation of the property. The firm caveated this estimate with the statement that “until remediation was under way TerraTactix that remediation costs would not increase.” While we don’t have the final appraised value, it’s clear from the commercial appraisers, that APN 057-191-170 will have a negative assessed value. For this reason, along with an uncertain total cost for remediation, staff believes that the City should not purchase or consider property acquisition.

APN 057-191-150 and 057-191-180
Ryan Valuations, appraised the value of the two unpaved parcels at $100,000. This appraisal is for an uncontaminated site that could be used in any way consistent with local zoning regulations. As discussed in the Executive Summary, most recently, the properties have been used for parking vehicles in varying states of repair.

The environmental engineering firm, GPRS was hired to perform Ground Penetrating Radar and no underground tanks were discovered. It is recommended that water samples be taken to see whether groundwater contamination exists and if so, at what levels? Depending upon whether groundwater contamination is found, the APNs could be purchased for City parking to support the Castle Creek daylighting project.

Once ground water testing is complete and if the results are satisfactory, it is suggested that an appropriate offer be made to the owner for the purchase of the property that takes into account the testing done by the City and other limitations on the properties.

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1 of 4
Order Number: Work Order #662747 Job Date: May 9, 2024 7:07:00 PM Customer: 68814 KC ENGINEERING

COMPANY
Billing Address: KC ENGINEERING COMPANY
865 COTTING LANE STE A
VACAVILLE CA 95688
United States

JOB DETAILS
Jobsite Location 415 Chestnut Street, Mount Shasta, California, 96067 Work Order Number Work Order #662747
Job Number
PO Number
GPRS Project Manager: Darrell Fernandez
Thank you for using GPRS on your project. We appreciate the opportunity to work with you. If you have questions regarding the results of this scanning, please contact the lead GPRS project manager on this project.

EQUIPMENT USED
The following equipment was used on this project:
• Underground GPR Antenna: This GPR Antenna uses frequencies ranging from 250 MHz to 450 MHz and is mounted in a stroller frame that rolls over the surface. Data is displayed on a screen and marked in the field in real time. The surface needs to be reasonably smooth and unobstructed to obtain readable scans. Obstructions such as curbs, landscaping, and vegetation will limit the efficacy of GPR. The total effective scan depth can be as much as 8’ or more with this antenna but can vary widely depending on the soil conditions and composition. Some soil types, such as clay, may limit maximum depths to 3’ or less. As depth increases, targets must be larger to be detected, and non-metallic targets can be challenging to locate. The depths provided should always be treated as estimates as their accuracy can be affected by multiple factors. For more information, please visit: Link
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WORK PERFORMED

UNDERGROUND STORAGE TANKS
Client Provided Drawings Yes
Scope of Work Client would like for us to scan for UST’s on site within the boundaries as indicated on the map given to us.

Small Area Scan (sq ft) 10,000
Approximate GPR Effective Depth (ft) 5
Potential UST Located No
Potential Area of Concern Located No
Results Notes After scanning the entirety of the property (excluding the interior of the building), GPRS did not find anomalies to indicate UST’s on site. Client stated there are no reports/ data of UST’s on site in the past 30 years. The site has always been an auto shop of some sort in the past 30 years. GPR visibility was limited to about a depth of 5-6 feet on site. Although there were some areas GPR visibility was limited to about a depth of 3-4 feet. Formal report will be sent to client early next week showing scan data on site in relation to the scan areas.

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JOBSITE IMAGES
Jobsite Photo #1
Jobsite Photo #2
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Jobsite Photo #3

CONTACT / SIGNATURE INFORMATION
Contact Information
Contact Name AMY LEE Email [email protected]

TERMS & CONDITIONS
http://www.gprsinc.com/termsandconditions.html
Mt. Shasta City Council Regular Meeting June 24, 2024 75

APPRAISAL REPORT
MT. SHASTA BROWNELL VACANT PARCELS
057-191-150 AND 057-191-180,
MT. SHASTA, CALIFORNIA
SUBMITTED TO:

CITY OF MOUNT SHASTA, C/O TODD JUHASZ (CITY

MANAGER)
305 N. MT. SHASTA BLVD,
MT. SHASTA, CA 96067
PREPARED BY:

RYAN VALUATION SERVICES
PO BOX 994226

REDDING, CALIFORNIA
(530) 224-6744
Mt. Shasta City Council Regular Meeting June 24, 2024 76 March 28th, 2024
City of Mt Shasta, c/o Todd Juhasz (City Manager)
305 N. Mt. Shasta Blvd,
Mt Shasta, CA 96067
Re: Mt. Shasta Brownell Vacant Parcels
057-191-150 and 057-191-180
Mount Shasta, California
RVS Reference: 24-003 – 057-191-150 and 057-191-180
Brownell Vacant Parcels, Mt. Shasta
Dear Todd Juhasz and Tom Hesseldenz:

As requested, we have prepared an appraisal report of the subject property referenced above. We have inspected the subject and analyzed the market conditions in the subject’s market area of Mount Shasta, California. The client has requested an opinion of the market value of the fee simple interest in the subject property in the as-is condition. The subject consists of two adjacent properties with a total of 7,509 SF (0.17 acres) vacant parcels. One parcel APN 057-191-150 consists of 2,505 SF and the other APN 057- 191-180 consists of 5,004 SF. The subject is currently owned by Alan Eugene Brownell.

The subject consists of two adjacent commercial vacant parcels. We were not provided with environmental reports. We have made the extraordinary assumption that the subject is free and clear of any type of environmental contamination. Use of this assumption may have affected the assignment results. If this assumption is found to be false, the value conclusion could change. The analyses and value opinion in the appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated.

Based on our analysis, it is our opinion that the market value of the leased fee interest of the subject property as of 3/26/2024 is:

Opinion of Market Value, As Is Condition, 3/26/2024
$100,000
This appraisal report is completed in accordance with the 2024 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Furthermore, this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Mt. Shasta City Council Regular Meeting June 24, 2024 77 Appraisal Practice for an appraisal report. The opinion of market value is premised upon the Assumptions and Limiting Conditions contained within this report.

Documentation concerning the data, reasoning, and analysis is maintained in the appraiser’s files. The depth of discussion contained in this report is specific to the intended use of the client. The appraiser is not responsible for unauthorized use of this report. The intended use and user of the report is specifically identified in the report as agreed on in the engagement contract for appraisal services. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and Ryan Valuation Services will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety.

We have not performed any appraisal assignments involving the subject for three years prior to the date of value. Charles W. Ryan, MAI and Fei Du have completed the requirements under the continuing education program of the Appraisal Institute.

Sincerely,
Charles W. Ryan, MAI Fei Du
CA Cert. No. AG 006156 CA License No.: TA3009834
Expiration: June 25, 2024 Expiration: March 16, 2026
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CERTIFICATION STATEMENT...............................................................................................................6 CERTIFICATION STATEMENT...............................................................................................................7 SUMMARY OF FACTS AND CONCLUSIONS...........................................................................................8 SCOPE OF WORK................................................................................................................................9 SUBJECT OF THE APPRAISAL.................................................................................................................... 9 CLIENTS .............................................................................................................................................. 9 INTENDED USE OF THE APPRAISAL ........................................................................................................... 9 INTENDED USER OF THE APPRAISAL ......................................................................................................... 9 APPRAISAL PROBLEM ............................................................................................................................ 9 DEFINITION OF MARKET VALUE ............................................................................................................10 CASH EQUIVALENCY............................................................................................................................11 PROPERTY RIGHTS APPRAISED ..............................................................................................................11 PERTINENT DATES ..............................................................................................................................11 LEGAL DESCRIPTION............................................................................................................................11 OWNERSHIP ......................................................................................................................................11 SALE HISTORY OF SUBJECT PROPERTY ....................................................................................................12 PRIOR APPRAISALS..............................................................................................................................12 EXPOSURE TIME ................................................................................................................................. 12 SUBJECT INFORMATION...................................................................................................................13 SUBJECT DESCRIPTION.........................................................................................................................13 SUBJECT LOCATION.............................................................................................................................13 GENERAL PLAN & ZONING ...................................................................................................................14 ASSESSOR PARCEL MAP, LAND SIZE, & CONFIGURATION ..........................................................................14 TAXES AND ASSESSMENTS....................................................................................................................15 TOPOGRAPHY & DRAINAGE..................................................................................................................17 FLOOD ZONE .....................................................................................................................................17 EASEMENTS AND ENCUMBRANCES ........................................................................................................18 UTILITIES...........................................................................................................................................18 ACCESS .............................................................................................................................................18 SOIL & SUBSOIL ................................................................................................................................. 18 EARTHQUAKE FAULT-RUPTURE HAZARD AND SEISMIC HAZARD ZONES........................................................18 HAZARDOUS WASTE ...........................................................................................................................18 PERSONAL PROPERTY ..........................................................................................................................18 AMERICANS WITH DISABILITIES ACT.......................................................................................................18 MARKET AREA ANALYSIS .....................................................................................................................20 NEIGHBORHOOD ANALYSIS ..................................................................................................................21 HIGHEST AND BEST USE .................................................................................................................23 SALES COMPARISON APPROACH ......................................................................................................24 COMPARABLE SALES DISCUSSION..........................................................................................................28 PROPERTY RIGHTS, FINANCIAL TERMS AND CONDITIONS OF SALE ...............................................................29 MARKET CONDITIONS .........................................................................................................................29 PHYSICAL ELEMENTS OF COMPARISON...................................................................................................29 Mt. 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OVERALL COMPARABLES RANKING ..................................................................................................30 ADDENDA ........................................................................................................................................32 SUBJECT PHOTOS ...............................................................................................................................33 ENGAGEMENT LETTER .........................................................................................................................34 GREENWAY PROJECT PRELIMINARY ANALYSIS..........................................................................................36 SISKIYOU COUNTY ZONING MAP...........................................................................................................58 UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS..........................................................................59 QUALIFICATIONS OF CHARLES W. RYAN, MAI................................................................................61 APPRAISER LICENSE ............................................................................................................................62 QUALIFICATIONS OF FEI DU ...........................................................................................................63 APPRAISER LICENSE.............................................................................................................................64 Mt. Shasta City Council Regular Meeting June 24, 2024 80 24-003 RVS
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CERTIFICATION STATEMENT
I certify that, to the best of my knowledge and belief:
▪ The statements of fact contained in this report are true and correct. ▪ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
▪ I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. ▪ I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
▪ I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
▪ My engagement in this assignment was not contingent upon developing or reporting predetermined results.
▪ My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal consulting assignment. ▪ The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
▪ The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
▪ I have made a personal inspection of the property that is the subject of this report. ▪ Fei Du provided significant real property appraisal assistance to the person signing this certification.
▪ As of the date of this report, I Charles W. Ryan, MAI have completed the continuing education program of the Appraisal Institute.
_________________________ Date: 3/28/2024
Charles W. Ryan MAI
CA License No.: AG006156
Expiration: June 25, 2024
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CERTIFICATION STATEMENT
I certify that, to the best of my knowledge and belief:
▪ The statements of fact contained in this report are true and correct. ▪ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
▪ I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. ▪ I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.
▪ I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
▪ My engagement in this assignment was not contingent upon developing or reporting predetermined results.
▪ My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal consulting assignment. ▪ The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
▪ I have made a personal inspection of the property that is the subject of this report. ▪ I assisted with general market analysis, data collection, neighborhood analysis, subject analysis, highest and best use, sales comparison approach for the property and the land (property data search, data analysis, ranking and adjustment grids, inspection of the subject and the comparable properties), and reconciliation of value with the assistance and direct supervision of Charles Ryan.
_________________________ Date: 3/28/2024
Fei Du
CA License No.: TA3009834
Expiration: March 16, 2026
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SUMMARY OF FACTS AND CONCLUSIONS
Assignment: Commercial Vacant Land
Location: 057-191-150 and 057-191-180
Mt Shasta, California 96067
Interest Appraised: Fee Simple Interest
Highest and Best use (As if Vacant): Owner/user development of commercial space Highest and Best use (As Improved): N/A

VALUATION SUMMARY
Sales Comparison Approach: As-Is $100,000
OPINION OF MARKET VALUE: AS-IS CONDITION, 1/14/2024 $100,000 Land Description ECT PHOTOGRAPHS
Assessor’s Parcel Number: 057-191-150 and 057-191-180
Site Area: Total Site Area: 7,509 SF (0.17 acres), 2,505 SF and 5,004 SF Zoning: C-1, Downtown Commercial District
Flood Zone: Zone X, Other Flood Areas “areas outside of the 0.2% annual chance flood”, as shown on FEMA FIRM Flood Panel No.:
06093C 3025D dated January 19, 2011.

Improvement Description (As-Is)
Property Type: Commercial Vacant Land
Improvements will be discussed in greater detail later in this report.

Extraordinary Assumptions
The subject consists of two adjacent commercial vacant parcels. We were not provided with environmental reports. We have made the extraordinary assumption that the subject is free and clear of any type of environmental contamination. Use of this assumption may have affected the assignment results. If this assumption is found to be false, the value conclusion could change.

Hypothetical Conditions
None.

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SCOPE OF WORK

SUBJECT OF THE APPRAISAL
The subject is two adjacent commercial vacant parcels in a downtown commercial zoned district located in the north of the incorporated city limits of Mt. Shasta, Siskiyou County, California. The common street addresses are 057-191-150 and 057-191-180, Mt. Shasta, CA 96067.

CLIENTS
The City of Mount Shasta, C/O Todd Juhasz (City Manager) 305 N. Mt. Shasta Blvd,
Mt Shasta, CA 96067

INTENDED USE OF THE APPRAISAL
Provide an opinion of the market value of the subject property as of 3/26/2024 for subject acquisition.

INTENDED USER OF THE APPRAISAL
The intended user of the report is the client, the City staff via Todd Juhasz, John Kenney (City Attorney), Tom Hesseldenz (Consulting landscape Architect), and City Councial and Committee members, John Stackfleth (Mayor) and Tessa Clure.

APPRAISAL PROBLEM
The client has requested an appraisal report. Supporting documentation is retained in the Ryan Valuation Services work file. The client is the potential developer of the subject property. The purpose of the appraisal is to provide an opinion of the market value of the subject property in the “As-Is” condition. The appraiser’s performed the following:
• Inspection of the subject site and collection of necessary data; • Gathering information by inspecting the subject’s neighborhood; • Reconciling the estimated highest and best use of the subject; • Selection of sales and leases of comparable properties and verifying pertinent information;
• Analyzing all information collected through application of the sales comparison and income approach to arrive at an opinion of market value; • And set forth the conclusions in an appraisal report format for the client’s particular needs.

The subject was inspected on 2/13/2024 and 3/26/2024. Physical measurements were provided by the Siskiyou County Assessor. The level of inspection was limited to walking around the property and observing and measuring the site. The nature of the inspection is to collect information about the physical characteristics of the property. The inspection is not meant to certify the condition of any of the improvements or functionality of any of the mechanical systems. All measurements were taken in the field and matched data from the Siskiyou County Assessor.

The subject is currently vacant with plans for development that involves and impactsthe property by Siskiyou County. The subject consists of two adjacent parcels with a total area of 7,509 SF (0.17 Mt. Shasta City Council Regular Meeting June 24, 2024 84 24-003 RVS
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acres). The site is zoned C-1, General Commercial district. The City has detailed plans for the development that involves and impacts the properties, including the subject, along the Shasta Creek. The plan details are attached in the Greenway Project Preliminary Analysis, which can be found in the addendum section of this report. The local market would not rely upon cost approach and income approach for valuation purposes. These were not considered applicable approaches and were not developed. The only applicable approach to value the vacant subject property is the sales comparison approach. The client requested a fee simple analysis.

Data was sufficient to limit data searches to the Anderson and Redding areas. Comparable data was gathered from Siskiyou County MLS, Shasta County MLS, Loopnet, ParcelQuest, local area brokers, and buyers/sellers involved in the transactions.

For the sales comparison approach we identified similar properties in the market area that have transferred ownership. Ideally, properties that have a similar highest and best use and share similar physical characteristics have sold and can be discovered. These properties are analyzed and compared to the subject property. All were inspected in the field and by pictures from MLS where available. When exact comparable properties cannot be located, sale properties are adjusted for inferior and superior characteristics to assist in estimating a value for the subject property. Sufficient data was found in the local market to arrive at a credible indication of value through the sales comparison approach.

This appraisal report is completed in accordance with the 2024 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Furthermore, this report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an appraisal report and is in accordance with the requirement of Title IX of the Financial Institution Reform, Recovery and Enforcement Act (FIRREA) and the Interagency Appraisal and Evaluation Guidelines (effective December 10, 2010) and any supplemental requirements of Cornerstone Community Bank. The opinion of market value is premised upon the Assumptions and Limiting Conditions contained within this report.

Documentation concerning the data, reasoning, and analysis is maintained in the appraiser’s files.

The depth of discussion contained in this report is specific to the intended use of the client. The appraiser is not responsible for unauthorized use of this report. The intended use and user of the report is specifically identified in the report as agreed on in the engagement contract for appraisal services. No other use or user of the report is permitted by any other party for any other purpose.

Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and Ryan Valuation Services will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety.

DEFINITION OF MARKET VALUE
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

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• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and acting in what they consider their best interests;
• A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
• The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, August 9, 1994) As is market value is defined by the Appraisal Institute as follows:

The estimate of market value of real property in its current physical condition, use and zoning as the appraisal date.

CASH EQUIVALENCY
The market value of the subject property is reported in many ways: (1) cash, (2) terms of financial arrangement equivalent to cash, or (3) other precisely defined terms. Our value estimate assumes terms of financial arrangements equivalent to cash. Adjusting for odd financing varying from cash equivalency is completed when necessary. Cash equivalency analysis is: “A price expressed in terms of cash, as distinguished from a price expressed totally or partly in terms of the face amounts of notes or other securities that cannot be sold at their face amounts. Calculating the cashequivalent price requires an appraiser to compare transactions involving atypical financing to transactions involving comparable properties financed at typical market terms.”

PROPERTY RIGHTS APPRAISED
We appraised the fee simple interest in the subject property. The Dictionary of Real Estate Appraisal, 7th Edition defines fee simple estate as: “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”

PERTINENT DATES
Date of Inspection: 2/13/2024 and 3/26/2024
Date of Value: 3/26/2024
Date of Report: 3/28/2024

LEGAL DESCRIPTION
No preliminary title report was provided. For purposes analysis, the subject is identified by Siskiyou County Assessor Parcel Number 057-191-150 and 057-191-180.

OWNERSHIP
The subject land is currently owned by Alan Eugene Brownell, according to the Officials at the Assessor Records of Siskiyou County, California.

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SALE HISTORY OF SUBJECT PROPERTY
There have been no listings or sales transactions involving the subject for the prior three years from the date of this report.

PRIOR APPRAISALS
We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three-year period immediately preceding acceptance of this assignment.

EXPOSURE TIME
The Appraisal Institute defines exposure time as:
"The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market."
Current market conditions indicate that the subject’s hypothetical exposure time would be in the 6 to 12 month range.

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SUBJECT INFORMATION

SUBJECT DESCRIPTION
The subject property is located just west of downtown in the incorporated city limits of Mount Shasta, Siskiyou County, California. The property has Parcel Numbers of 057-191-150 and 057- 191-180 and addresses of 057-191-150 and 057-191-180, Mt. Shasta, CA 96067. The two parcels are contiguous. The subject is surrounded by retail services, offices, and restaurants, with single family homes and apartments further east. The subject is just east of the N. Mt. Shasta Boulevard corridor and north of the E. Lake Street corridor.

APN Land Area
057-191-150 2,505 SF
057-191-180 5,004 SF
Total SF 7,509 SF
Total AC 0.17 Acre

SUBJECT LOCATION
The subject location is shown on the following map.

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GENERAL PLAN & ZONING
The general plan dictates general land uses in an area with zoning further restricting allowable uses. Zoning further defines uses, such as exact permitted uses and development requirements.

The general plan land use for the subject property is Commercial Center and the subject area is zoned C-1, Downtown Commercial District. Mt. Shasta City Zoning Map is attached in the addendum section. The City of Mt. Shasta describes the C-1 district as follows:

The purpose of the Downtown Commercial zoning district is to serve the commercial land use within the downtown of the city. The C-1 zone achieves multiple land use goals for the business community allowing the most flexibility in design and land use. Understanding that the downtown is the most urban area in this rural community, this district allows for the most intense land use coverage. Retail, currently use, is an outright permitted use in this district.

ASSESSOR PARCEL MAP, LAND SIZE, & CONFIGURATION
We have relied upon data reported by the Siskiyou County Assessor’ Office. The subject is identified as Parcel 057-191-150 and 057-191-180 and is approximately 7,509 SF (0.17 acres) with one parcel consists of 2,505 SF and the other 5,004 SF. The overall site is rectangular in shape as shown on the Assessor Parcel Map.

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TAXES AND ASSESSMENTS
In 1978, California voters passed Proposition 13. All parcels were effectively reappraised to 1975 base year market values. If the property is transferred to a new owner or substantially altered through remodeling or addition, it is reappraised at market value. Otherwise, the original 1975 market values can be increased only approximately two percent per year. The basic tax rate is 1% of market value plus special assessments. Bonds bring the tax rate to 1.08% of market value.

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TOPOGRAPHY & DRAINAGE
The parcel is generally flat in topography and graded to divert storm water away from improvements into storm drains on the site which connected to City of Mount Shasta drains.

FLOOD ZONE
The subject is located in FEMA designated flood Zone X, Other Flood Areas “areas outside of the

0.2% annual chance flood”, as shown on FEMA FIRM Flood Panel No.: 06093C 3025D dated January 19, 2011. Flood insurance does not appear to be needed. Given the physical limitations of the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRM), the flood zone determination of this report may vary from that identified by way of a formal survey produced by an engineering firm with expertise in the field.

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EASEMENTS AND ENCUMBRANCES
No preliminary title report was provided. Typical public utility easements are assumed to be in place. The property being appraised is assumed to be unencumbered from any negative liens or other restrictions.

UTILITIES
All public utilities are available on the site. Water, Sewer, and garbage services are provided by the City of Mt. Shasta. Pacific Power provides electrical services. PG&E provided gas services.

Phone and cable services are provided by AT&T.

ACCESS
The subject parcels shared a curb cut on Chestnut Street with an adjacent improved parcel. The frontage area along Chestnut Street is fully improved with curbs, gutters and sidewalks that extend to the intersection of E. Castle Street to the south and the intersection of E. Alma Street to the north. Both, E. Castle Street and E Alma Street, are publicly maintained asphalt roadways.

Access is adequate for most commercial related users.

SOIL & SUBSOIL
We were not provided soil reports. We assume that there are no hidden conditions of the soil or subsoil, which would affect valuation of the property. We assume no responsibility for such conditions or for engineering required to discover such factors. We assume the load bearing qualities of the soil are adequate for the subject's use. Neither the individuals completing this report nor Ryan Valuation Services have any liability for the identification of environmental concerns except as defined in applicable industry standards.

EARTHQUAKE FAULT-RUPTURE HAZARD AND SEISMIC HAZARD ZONES The Alquist-Priolo Earthquake Fault Zoning Act (1972) and the Seismic Hazards Mapping Act (1990) direct the California State Geologist to delineate regulatory “Zones of Required Investigation” to reduce the threat of to public health and safety and to minimize the loss of life and property posed by earthquake-triggered ground failures. Based on information published by the State of California Department of Conservation the subject is not located in either hazard area.

HAZARDOUS WASTE
No environmental assessment was provided, but according to the client, an environmental one assessment will be conducted. No below-ground storage tanks or hazardous storage containers were present on the property during the inspection. This appraisal assumes there are no stigmas or lingering negative environmental effects on surrounding adjoining properties as a result of past or present activities on the subject property or surrounding adjoining properties.

PERSONAL PROPERTY
No personal property is included in the opinion of value rendered in this report.

AMERICANS WITH DISABILITIES ACT
The Americans with Disabilities Act (ADA) became effective January 26, 1992. Ryan Valuation Services has not made a specific compliance survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of the ADA. It is possible that Mt. Shasta City Council Regular Meeting June 24, 2024 93 24-003 RVS
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a compliance survey of the property together with a detailed analysis of the requirements of ADA could reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect on the value of the subject property. We have no direct evidence relating to this issue, nor are we qualified to make such as assessment. The effect of any possible non-compliance with the requirements of the ADA was not considered in our opinion of value of the subject.

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MARKET AREA ANALYSIS
The subject property is located in the city of Mt. Shasta in Siskiyou County, California. The city is a mountain community that primarily serves the local population and relies heavily upon seasonal tourism and travelers navigating Interstate 5 for economic activities. The City has detailed plans for the development that involves and impacts the properties, including the subject, along the Shasta Creek. The plan details are attached in the Greenway Project Preliminary Analysis, which can be found in the addendum section of this report.

The following table identifies population trends in Siskiyou County and all incorporated cities from 1/1/2014 through 1/1/2023.

COUNTY/CITY 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 Siskiyou County
Dorris 961 967 967 966 988 994 859 859 843 839
Dunsmuir 1,623 1,626 1,621 1,612 1,652 1,653 1,705 1,704 1,672 1,663 Etna 733 737 735 733 744 744 684 684 671 668
Fort Jones 710 712 710 710 678 674 694 694 681 678
Montague 1,446 1,447 1,446 1,441 1,366 1,359 1,230 1,231 1,208 1,203 Mount Shasta 3,365 3,370 3,362 3,355 3,397 3,407 3,244 3,245 3,188 3,215 Tulelake 1,006 1,009 1,007 1,002 921 911 901 899 882 878 Weed 2,952 2,700 2,759 2,805 2,724 2,748 2,902 2,825 2,815 2,693 Yreka 7,797 7,815 7,811 7,777 7,795 7,795 7,781 7,772 7,732 7,825 Balance Of County 24,216 24,347 24,304 24,287 24,330 24,304 24,076 24,018 23,948 23,886 Incorporated 20,593 20,383 20,418 20,401 20,265 20,285 20,000 19,913 19,692 19,662 County Total 44,809 44,730 44,722 44,688 44,595 44,589 44,076 43,931 43,640 43,548

POPULATION TRENDS, SISKIYOU COUNTY
Population countywide had been stagnant between 2014 to 2019 and decreased slightly since 2020 due to the Covid-19 Pandemic over the next three years and recovered slightly starting 2023.

Population growth in Mt. Shasta followed a similar pattern as the county. Population growth is anticipated to recover to the pre-Covid Pandemic population.

From the State of California EDD: “The unemployment rate in the Siskiyou County was 6.1 percent in November 2023. It is much below the estimate of 10.7 percent in the beginning of 2021. This compares with an unadjusted unemployment rate of 4.6 percent for Siskiyou County, California.” The spike in the unemployment rate is a result of the shutdowns of many businesses by the State of California in March 2020 as a result of COVID-19. The current employment in Siskiyou County is trending just above the state and the US average for unemployment. The unemployment rate has fallen after COVID-19. The unemployment rate for Siskiyou County was at 6.1 percent as of November 2023.

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In the winter of 2022/2023 and 2023/2024, the Mt. Shasta Ski Park received enough snow to open and reportedly had very good years. Because of this, motels, restaurants and retailers also had their good years and promoted Mt. Shasta economy recovery since Covid-19.

NEIGHBORHOOD ANALYSIS
The subject is located on Chestnut Street, half mile west of Interstate 5. This is the primary exit for Mt. Shasta, with a four-way interchange on I-5. It is also just west of North Mt. Shasta Boulevard, which extends into the central town of Mt. Shasta. To the south of the subject, it is the Lake Street corridor, there are three convenience stores with nationally branded fuel, Burger King, Taco Bell, KFC, and the Black Bear Diner. Off West Lake Street on Morgan Way is a neighborhood shopping Center anchored by Rays Grocery store and the Best Western Tree House Hotel.

The neighborhood is considered to be the major retail corridor on or near this interchange. Along Mount Shasta Boulevard, the strip mall is anchored by several major retailers along with numerous local businesses, restaurants, and other services. The subject is neighboring retailspaces to the north and south side and restaurants / food services to the east and west side.

The Mount Shasta Boulevard corridor is one of the busiest in the City of Mount Shasta. The corridor is mostly developed with no significant vacant lots remaining for development. Due to I-5 influence, there are many national retailers and restaurant users in the immediate area of the subject. The subject has been rented by long-term tenants.

Through inspections and observations of the local area, the area has very few to none rental units available, supporting the conclusion of the estimated local retail vacancy rate of 2 to 3 percent standard market vacancy turnover rate. The market supplies an efficient number of sales that are comparable to the subject in the immediate surrounding area, which indicates similar units in the area have quick absorption rates and an average market sales time of six months to one year. The downtown area is mostly developed with very few opportunities for new development and no immediate development is expected to occur for the immediate area in the near future.

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Retail space in this prime location typically commands either triple net lease terms or gross lease with tenants paying for utilities and interior maintenance. Rent concessions have been less common as the market has strengthened.

In conclusion the overall local market has improved, but the economy of Mt. Shasta City is heavily dependent on seasonal tourism. The strength of the subject is the North Mt. Shasta Boulevard corridor, East / West Lake Street corridor, and neighboring commercial businesses targeting travelers.

This trend should continue for the foreseeable future.

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HIGHEST AND BEST USE
“The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.” Highest and Best Use as if Vacant
The subject is zoned C-1, Downtown Commercial district. The C-1 district is a flexible commercial district with a multitude of commercial and industrial uses allowed. The subject is located near a major corridor of retail/commercial properties to the east and west side of the North Mount Shasta Boulevard. Properties in the immediate neighborhood have been developed to multiple uses, which include retail, retail / pharmacy, office, and service-related uses.

The subject comprises approximately 7,509 square feet of developable land. All public and private utilities are available to the site. Good transportation linkages provide physical access to the site.

The physical characteristics and the physical size of the parcel is sufficient for many of the legally permissible uses in the C-1 zoning district.

The local market is improving with increased tourism because of favorable weather conditions.

The local economy depends heavily on seasonal tourism. Despite improved economic conditions and cautiously optimistic sentiment, there continues to be weak demand for vacant commercial land. Although located in a strong commercial corridor, this area primarily attracts freeway travelers. Given the current economic conditions, the weak demand for vacant commercial land, stagnant rent levels, the cost of operating expenses, including property taxes, site acquisition costs, cost to secure all entitlements, architecture and engineering fees, site development costs, and construction costs, few projects would likely be financially feasible.

The area around the subject is fully developed. The maximally productive use of the land is for some form of legally permitted retail / commercial / service use, either for an owner user or as a build to suit project for a tenant. Limited supply of similar properties for rent and the quick absorption rate for the sales of similar properties are direct market evidence of financial feasibility. Timing for retail development is immediate. The highest and best use as if vacant is speculative for legally permitted downtown commercial use.

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SALES COMPARISON APPROACH
The Sales Comparison Approach is utilized to arrive at an opinion of market value by comparing other similar properties to the subject that have recently transferred in the same marketplace. We have narrowed the selection to comparable sales that we conclude form the best supported bracketed range of price per unit indicators around the subject. # APN Address/Locatio
n City Recording Date Sale Price Zonin
g
Utilities
Land
Area
SF
Land
Area
AC
Price Per
Lot
# 057-191-150, 180 057-191-150, 180 Mt Shasta C-1 All public 7,509 0.17 1 057-272-160 Parcel A Berry St Mt Shasta 12/18/2023 $65,000 C/R Public water and electric, Sewer 8,276 0.19 $65,000.00
2 116-170-005 11080 Rhyolite Dr Redding 4/28/2023 $48,000 GC All utilities availble at the lotline 9,360 0.21 $48,000.00
3 057-311-180 803 S Mt Shasta Blvd Mt Shasta 12/4/2023 $334,000 C-2 Public water and electric, Sewer 165,528 3.80 $334,000.00
4 037-420-070 Lot 7 Gateway Park Mt Shasta 6/26/2022 $110,000 C1 Electricity at the lotline 45,302 1.04 $110,000.00
5 070-290-079 3371 Bechelli Ln Redding 5/9/2023 $47,000 GC All utilities availble at the lotline 13,939 0.32 $47,000.00

COMPARABLE SALES SUMMARY
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SALES COMPARABLE LOCATION MAP
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1 Comparable Sale No. 1 Comparable Sale No. 2
Comparable Sale No. 3 Comparable Sale No. 4
Comparable Sale No. 5
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COMPARABLE SALES DISCUSSION
Comparable one (APN 057-272-160, Doc # 2023-8914; Buyer: Wylie Clifton R Living Trust; Seller:

Myers Family Trust) is a 8,391 SF site located just west of Mt. Shasta Boulevard and just south of West Lake Street. This property consists of vacant land with a small creek, partial wood fencing, and no frontage improvements. The site had been mostly cleared with the exception of a few selected trees at the time of the sale, and is zoned for commercial and high-density residential use. It also mostly has gentle topography with all utilities available to the site. This was a cash transaction.

Comparable two (APN 116-170-005, Doc # 2023-8731; Buyer: Ingdom Properties LLC; Seller:

Randall W. Smith) is a 9,148 SF of vacant lot with full frontage improvements, including curb and sidewalk. The site is located just south of Highway 299 and west of I-5 in north Redding. The site is zoned GC, General Commercial, and this area is generally recognized as a commercial area in north Redding with publicly maintained roads. The site has partial chain link fencing and gentle topography with heavy vegetation and trees. All utilities are available to the site. This was an all cash to seller transaction with a $48,000 Private loan.

Comparable three (APN 057-311-180, Doc # 2023-8647; Buyer: Shasta Grove LLC; Seller: James L.

Tolosano) is a 3.80 acres site consisting of vacant land with full frontage improvements. The site is located on the west side of Mt. Shasta Blvd and Ream Ave intersection. The property is zoned C2, General Commercial outside of the downtown area district. The site has flat topography with few trees and vegetation, partial metal pole and wire fencing, and all utilities are available to the site. This was a cash transaction.

Comparable four (APN 037-420-070, Doc # 2022-5094; Buyer: Chad T. Lanier and Elaine M. Lanier; Seller: Enloe Donald 2014 Living Trust) is a 1.04 acre of vacant land with curb improvement. The site is located just south of Highway-89 and east of the I-5 and Highway-89 junction. The property is zoned C1, General Commercial district. The neighborhood is consisted of residential homes, offices, and warehouses. The site has mostly gentle topography with some large boulders at the north of the property line. The site also has a view of Mt. Shasta. The property has electricity available to the lot line but requires well and septic. This was a cash transaction.

Comparable five (APN 070-290-079-000, Doc # 2023-9572; Buyer: Mauricio V. Borges and Ariane Fleiderman; Seller: Aalfs Family Trust) is a 13,939 SF site located on the west side of I-5 and south of Hartnell Aveune. The site is zoned GC, General Commercial district and the general neighborhood consists of business services, restaurants, schools, and offices. There are also several residential areas to the east of the property. The site has partial fencing at the east side of the property line and full frontage improvements. The west side of the property has gentle topography with a small patch of graveled area and rolling hill topography with heavy vegetation and trees at the east side of the property. All utilities are available at the property line. This was an all cash to seller transaction with a $7,000 Private loan.

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SUBJECT Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
057-191-150,
180 Parcel A Berry St 11080 Rhyolite Dr
803 S Mt Shasta
Blvd
Lot 7 Gateway
Park 3371 Bechelli Ln
Sale Price $65,000 $48,000 $334,000 $110,000 $47,000
Lot Area 7,509 8,276 9,360 165,528 45,302 13,939
Sale Date 12/18/2023 4/28/2023 12/4/2023 6/26/2022 5/9/2023 Sale Price/ Lot $65,000.00 $48,000.00 $334,000.00 $110,000.00 $47,000.00 Property Rights Fee Simple Similar Similar Similar Similar Similar Financing Cash Equiv. Similar Similar Similar Similar Similar Conditions of
Sale Arm's Length Similar Similar Similar Similar Similar Market
Conditions 3/26/2024 Similar Similar Similar Similar Similar Location Mt Shasta Slightly Inferior Similar Similar Slightly Inferior Similar Orientation Similar Similar Similar Similar Similar
View Average Similar Similar Similar Superior Similar
Creek No Superior Similar Similar Similar Similar
Utilities All Public Similar Similar Similar Slightly Inferior Similar Fencing Partial Fencing Similar Slightly Inferior Similar Slightly Inferior Similar Visibility Good Similar Slightly Inferior Similar Slightly Inferior Similar Curb Side
Improvements Yes Inferior Similar Similar Slightly Inferior Similar Topography Flat Slightly Inferior Slightly Inferior Similar Similar Inferior Vegetation and
Trees None Inferior Slightly Inferior Slightly Inferior Similar Inferior Lot size Similar Similar Superior Slightly Superior Similar Overall
comparsion Inferior Inferior Superior Slightly Superior Inferior Adjusted Sale
Price $65,000.00 $48,000.00 $334,000.00 $110,000.00 $47,000.00

RANKING AND ADJUSTMENT GRID

PROPERTY RIGHTS, FINANCIAL TERMS AND CONDITIONS OF SALE All of the comparables have similar property rights, fee simple or leased fee, compared to the subject. Since the property rights can be easily converted from leased fee to fee simple in this case, there are no adjustments required for property rights for any of the sales. All were cash equivalent sales and all were arm’s length transactions. None of the sales required adjustments for conditions of sale.

MARKET CONDITIONS
The subject is a vacant commercial parcel. Comparables used are found in immediate neighborhood and near by city of Redding to keep the comparables in a similar demographic compared to the subject. The closed comparable sales transferred ownership between 6/26/2022 and 12/18/23. The type of property similar to the subject showed limited fluctuation in sales price during this time frame; therefore, there are no adjustments required for market conditions for any of the sales.

PHYSICAL ELEMENTS OF COMPARISON
The subject is located just east of Interstate 5 in west Mt. Shasta with frontage on Chestnut Street.

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due to the small size town and the lack of small parcels in the downtown area similar to the subject. However, all the comparables selected are located either in the immediate neighborhood or in nearby cities with similar property sales market and property usage to the subject property.

All criteria were qualitatively compared to the subject. Comparables one, three, and four are located in the City of Mt. Shasta with comparable three in the closest proximity to the subject.

Comparables one and four are in less populated areas of Mt. Shasta, closer to the outskirts of the city, and are ranked slightly inferior in this criterion compared to the subject. Comparable one also has slightly inferior topography with heavy vegetation and trees that would need to be cleared before development. It has similar utilities availability, fencing, visibility, and lot size compared to the subject. Though it includes a seasonal running creek on the property, comparable one is on balance ranked inferior to the subject overall. Comparable two has similar location, orientation, views, utilities availability at the site, lot size, and curb improvements compared to the subject, but with slightly inferior visibility and topography including some vegetation and trees that need to be cleared before development, it is ranked slightly inferior overall compared to the subject. Comparable three is the most similar in location compared to the subject, along with similarities in most of the characteristics of the subject parcel. However, it has a much larger lot size, which is significantly superior compared to the subject; therefore, it is ranked superior overall. Comparable four is located at the border of South Mt. Shasta. The area has much lower population density and traffic compared to the downtown area where the subject is located. In addition to a slightly inferior location, it also has slightly inferior visibility, fencing, and curbside improvements, with no fencing on site and only curb improvements for this parcel. Comparable four is also ranked inferior in utilities, as it needed septic and well. However, with a superior view of the Mountain Shasta and larger lot size, comparable four ranked slightly superior overall compared to the subject. Comparable five is located in southeast Redding at a major business district on Bechelli Lane, which has similar visibility and a similar local economy compared to the subject. It is ranked similarly in location, orientation, view, lot size, and curb improvements compared to the subject. It has inferior topography and vegetation and trees criteria compared to the subject; therefore, it is ranked overall inferior to the subject.

OVERALL COMPARABLES RANKING
The adjusted comparable sales are shown in the table below. # APN Address/Locati
on City Recording
Date
Sale
Price Zoning Utilities Land Area SF
Land Area
AC
Price Per
Lot
3 057-311-180 803 S Mt Shasta
Blvd Mt Shasta 12/4/2023 $334,000 C-2 Public water and electric, Sewer 165,528 3.80 $334,000.00 4 037-420-070 Lot 7 Gateway
Park Mt Shasta 6/26/2022 $110,000 C1 Electricity at the lotline 45,302 1.04 $110,000.00
057-191-150,
180
057-191-150,
180 Mt Shasta C-1 All public 7,509 0.17
1 057-272-160 Parcel A Berry St Mt Shasta 12/18/2023 $65,000 C/R Public water and electric, Sewer 8,276 0.19 $65,000.00
2 116-170-005 11080 Rhyolite Dr Redding 4/28/2023 $48,000 GC All utilities availble at the lotline 9,360 0.21 $48,000.00
5 070-290-079 3371 Bechelli Ln Redding 5/9/2023 $47,000 GC All utilities availble at the lotline 13,939 0.32 $47,000.00

RANKING COMPARABLE SALES SUMMARY
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Comparable three set the high end of the range. It is included in the analysis due to its proximity to the subject, but the high overall price per lot are reflective of its large parcel size. No weight was given to this sale. Adjusted comparables one, two, four and five are reflective of commercial vacant land with characteristics similar to the subject, including similar characteristics, zoning district, and land use. All comparables characteristics that influence the assessment of value were qualitatively compared to the subject. The sales had a wide range overall from $47,000 to $334,000 per lot, but the subject was adequately bracketed in between comparable one and four within a much tighter range, from $65,000 to $110,000 per lot. Comparable four were given primary weight since it is the most similar to the subject. A value in the $100,000 per lot range is supported by this analysis.

The subject value as of 3/26/2024 is supported by all comparables and adequately bracketed by comparables one and three. A value of $100,000 is supported for the subject in as is condition.

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ADDENDA
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SUBJECT PHOTOS
Front view Reception area
Entrance
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ENGAGEMENT LETTER
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GREENWAY PROJECT PRELIMINARY ANALYSIS
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SISKIYOU COUNTY ZONING MAP
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UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS

1. This appraisal report is intended to comply with the reporting requirements set forth under Standard Rule 2- 2(a) of the Uniform Standards of Professional Appraisal Practice for an appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report.

2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report.

3. The property is appraised free and clear of any and all liens and encumbrances unless otherwise stated in this report.

4. Responsible ownership and competent property management are assumed unless otherwise stated in this report.

5. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

6. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader is visualizing the property.

7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

8. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report.

9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.

10. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.

11. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.

12. It is assumed that the utilization of the land and improvements are within the boundaries or property lines of the property described, and that there is no encroachment or trespass unless otherwise stated in this report.

13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde, foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there are no such materials on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.

14. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural Mt. Shasta City Council Regular Meeting June 24, 2024 134 24-003 RVS
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in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility.

15. Any proposed improvements are assumed to be completed in good workmanlike manner in accordance with the submitted plans and specifications.

16. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

17. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only properly written qualification and only in its entirety.

18. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.

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QUALIFICATIONS OF CHARLES W. RYAN, MAI
BREA Appraiser Identification Number AG 006156

PROFESSIONAL EXPERIENCE
Crocker Citizens National Bank
Sacramento, CA
1962-1964
As a staff appraiser for the bank, my duties consisted of the appraisal of urban properties in metropolitan Sacramento and Lake Tahoe region.

Duties also included training of new appraisers and administrative trainees.

State Board of Equalization –
Division of Intercounty Equalization
1964-1968
Staff duties included the appraisal of farms, ranches, and commercial and industrial properties throughout the State of California.

Office of Appraisal Appeals
(State Board of Equalization)
1968-1976
As a Senior Appraiser, duties involved the review of both appraisals prepared by board staff and county personnel and ultimate re-appraisal.

Professional territory was the entire State of California and Bay area counties, plus rural and recreational properties in the central and northern counties.

Independent Fee Appraiser
1976 - Present
As an independent fee appraiser, I have completed appraisal assignments for financial institutions, attorneys, corporations, public agencies and individuals on all property types.

OTHER EXPERIENCES
■ Past President (1988) Sierra Nevada Chapter – Appraisal Institute ■ Past Chairman, Shasta County Assessment Appeals Board ■ Former Faculty, Appraisal Institute
■ Past Chairman Board of Trustees – Mercy Foundation North ■ Past President (1997-1998) Rotary Club of Redding
■ Past Board Chair – Board of Directors – Turtle Bay Exploration Park and Museum ■ Past Board Chair – Shasta Family YMCA
■ Past Board of Directors, Habitat for Humanity
■ Past Vice Chair – Shasta Mosquito and Vector Control District ■ Board of Directors, Shasta Senior Nutrition & Golden Umbrella

QUALIFIED AS EXPERT WITNESS
Superior Courts of Shasta, Tehama, Trinity, Lassen, Siskiyou, Humboldt, Los Angeles, Sacramento, Santa Clara, Orange and Riverside Counties.

EDUCATION
■ California State Polytechnic University Bachelor of Science Degree, Agriculture ■ American Institute of Real Estate Appraisers Completed Courses I, II, III, IV & Litigation Courses.

State Board of Equalization Courses

CONTINUING EDUCATION
“The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAI’s and RM’s who meet the minimum standards of this program are awarded periodic education certification.” I am certified under this program.

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APPRAISER LICENSE
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QUALIFICATIONS OF FEI DU
BREA Appraiser Identification Number TA 3063734
PROFESSIONAL EXPERIENCE:

Ryan Valuation Services March 2022 – Current
Assist in the preparation of appraisals for commercial and industrial properties under the direct supervision of General Appraisers Kent E. Hume and Charles Ryan. Emphasis on multi-family land, office, retail, eminent domain and special purpose properties in Shasta, Butte, Trinity, Tehama, Humboldt, and Siskiyou Counties.

Vista Real Estate Jan 2022 – Current
Next Home Cedar Street Realty – May 2019 – Jan 2022
Present, promote, and sell residential real estate. Establish, develop and maintain business and customer relationships. Represent clients, negotiate contract terms, and finalize contract agreements as needed. Monitor and gather current marketplace information on pricing, housing trends, new developments, and current rules and regulations to best serve the clientele.

Monsanto - Woodland, CA, Kannapolis, NC Oct 2007 - Feb 2012 Research Associate Supervision and leadership for projects, including strategic planning and organizing, delegating responsibilities, and supervising contractors to ensure efficient and timely completion of projects. Project coordination across a matrix organization as a core member of interdisciplinary project teams. Serve as safety coordinator and safety inspector for the laboratory, including safety training for new employees, performing laboratory inspections, writing Job Safety Analysis (JSAs), and performing Instrumentation Reviews for all laboratory equipment. Development and implementation of methods to identify and quantify nutritional contents. Extensive experience creating Standard Operational Procedure (SOP) / Best Laboratory Practices (BLP) documents.

PROFESSIONAL CREDENTIALS:
 State of California Trainee Appraiser, TA 3063734
 State of California Real Estate Salesperson License, 02093217 EDUCATION:
 M.S. in Chemistry; 2008 Sacramento State University, Sacramento  B. S. in Chemistry and Minor in English; 2005 University of California - Davis, Davis  Basic Appraisal Principles
 Basic Appraisal Procedures
 2020-2021 15-hr National USPAP Course
 Supervisor-Trainee Course for California
 Residential Market Analysis and Highest &
Best Use
 Residential Appraiser Site Valuation and
Cost Approach
 Residential Sales Comparison and Income
Approaches
 Residential Report Writing and Case
Studies
 Law and Regulations for California
Appraisers
 Statistics, Modeling, and Finance
 Advanced Residential Application and Case
Study
 Appraisal Subject Matter Electives
 General Appraiser Market Analysis Highest and
Best Use
 General Appraiser Site Valuation and Cost
Approach
 General Appraiser Sales Comparison Approach
 General Appraiser Income Approach
 General Report Writing & Case Studies
 Commercial Appraisal Review – Subject Matter
Elective
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APPRAISER LICENSE
Mt. Shasta City Council Regular Meeting June 24, 2024 139 CITY COUNCIL AGENDA ITEM #
MEETING DATE: June 24, 2024
TO: Mayor and City Council
FROM: Cory Burns, Fire Chief
SUBJECT: Purchase of New Utility Pickup
RECOMMENDATION:

Staff respectfully requests the City Council adopt Resolution CCR-24-XX, a Resolution of the City Council of the City of Mt. Shasta appropriating funds from the Fire Assessment Tax fund not to exceed $85,000 for the purchase of a new utility pickup with tow capabilities and approving the surplus of a 2013 Fire Utility Vehicle.

BACKGROUND & SUMMARY:

Earlier this year, the Fire Department was awarded a CALFIRE vegetation management grant that included the purchase of a skid steer. Along with this grant, the McConnell Foundation donated a trailer to haul the equipment. The City currently has one utility vehicle that is not equipped to tow the trailer. Staff has been actively seeking a buyer for this utility and has received an offer to sell it to the McCloud Fire Department for $35,000. With the sale of this utility pickup and funds available in Measure A, staff is seeking to purchase a new one-ton pickup with tow capacity and a turnover ball for a total amount not to exceed $85,000.

ATTACHMENTS:

Resolution CCR-24-XX
X Regular Session
Special Session
Emergency
Session
Closed Session
Mt. Shasta City Council Regular Meeting June 24, 2024 140 11 1
CCR-24-XX
RESOLUTION CCR-24-XX

A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MT. SHASTA

APPROPRIATING FUNDS FROM THE FIRE ASSESSMENT TAX FUND

AND AUTHORIZING THE PURCHASE OF A ONE-TON UTILITY PICKUP IN AN AMOUNT NOT TO EXCEED $85,000.00

AND APPROVING THE SURPLUS OF THE UTILITY PICKUP CURRENTLY

UTILIZED BY THE FIRE DEPARTMENT
WHEREAS, the Mt. Shasta Fire Department currently has one utility pickup; and WHEREAS, the City of Mt. Shasta was awarded a grant from CALFIRE that allowed for the purchase of a skid steer; and
WHEREAS, the McConnell Foundation donated a trailed to haul the skid steer; and WHEREAS, the Fire Department’s utility pickup does not have the capacity to tow the skid steer and trailer; and
WHEREAS, the Fire Chief is recommending the surplus and sale of the utility pickup; and WHEREAS, the funds from the sale of the utility pickup can be utilized toward the purchase of a new utility pickup with tow capacity; and
WHEREAS, the remaining cost for the purchase of said pickup can be appropriated from the Measure A Fire Assessment Tax Fund.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

1. The Fire Chief is authorized and directed to secure a new fire utility vehicle with the capacity to tow the trailer and skid steer.

2. The City Manager and/or Fire Chief are authorized and directed to proceed with the purchase of said utility vehicle.

3. The City Council approves the appropriation of an amount not to exceed $85,000 from the Measure “A” Fund for the purchase of the utility pickup.

4. The Fire Chief is directed to surplus the 2013 Dodge 2500 utility vehicle.

The foregoing Resolution was APPROVED and ADOPTED at a regular meeting of the City Council of the City of Mt. Shasta on the 24th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mt. Shasta City Council Regular Meeting June 24, 2024 141 2 CCR-24-XX
DATED: June 24, 2024
ATTEST: CITY OF MT. SHASTA
_______________________________ __________________________________ Kathryn M. Joyce, Deputy City Clerk John Stackfleth, Mayor Mt. Shasta City Council Regular Meeting June 24, 2024 142 City Council Agenda Item #12
Staff Report
Meeting Date: 6/24/2024
To: Mayor and City Council
From: Todd Juhasz, City Manager
Subject: Discussion regarding potential tax measures
Recommended Action: Staff to take direction from Council on a single, dual tax measures, or no increase at this time.

Background:

After the proposed drainage impact fees failed to pass, Council has suggested that the City should consider one or more tax measures. Regardless of whether the drainage impact fee passed, the costs need to be paid. Right now, these costs are likely to come from general fund revenues.

To offset these costs and to increase revenue Council may want to consider one or more of the following:
• A sales tax measure of ½% to ¾% that will increase general fund revenues to offset increasing costs for a variety of city services.
• A dedicated public safety tax increase as 60% of general fund revenues pay for fire, police, and code enforcement. Such a measure would require 67% of the vote. • A drainage impact fee of five dollars for residences and seven dollars for other structures that will only cover basic operation and maintenance.

X Regular
Consent
Closed
Presentation
Mt. Shasta City Council Regular Meeting June 24, 2024 143