Agenda packet — Mount Shasta City Council, July 27, 2026

“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 organizationsin the constant pursuit of excellence.”
Page Item STANDING AGENDA ITEMS

1. Call to Order and Flag Salute

2. Roll call

3. Special Presentations & Announcements

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.

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
There are currently several vacancies on advisory committees: one vacancy on the Planning Commission, two vacancies on the Beautification Committee, and one vacancy on the Downtown Enhancement Advisory Committee.

Mt. Shasta City Council Regular Meeting Amended Agenda
Mt. Shasta City Park Upper Lodge, 1315 Nixon Rd.

Monday, July 27th, 2026, 5:30 p.m.

The meeting can also be viewed online at the
following link: MountShasta.22Ave.tv

CITY COUNCIL BUSINESS

8. Beautification Committee Appointment: Kathleen Dugan Background: Kathleen Dugan has submitted an application to serve on the Beautification Committee.

Report By: Rachel Agron, Deputy City Clerk
Recommended Council Action: Staff recommends that the City Council appoint Kathleen Dugan to serve on the Beautification Committee.

9. Authorizing the Acting City Manager to Execute a Contract Extension with Wilson Construction Background: In July of 2025, the City entered into a lease agreement with Wilson Construction for the use of The Landing for storage. The attached agreement will extend the lease through March of 2027.

Report By: Ken Kellogg, Public Works Director
Recommended Council Action: Staff recommends that the City Council approve the extension of a lease with Wilson Construction for storage at the Landing through March of 2027.

10. Public Hearing: Tiny Homes on Wheels Ordinance
Background: In July 2025, the City Council adopted an ordinance creating Chapter 18.18 to the Municipal Code regulating tiny homes on wheels. City Staff has prepared revisions for this section of the Municipal Code.

Report By: Kim Fowler, Acting City Manager
Recommended Council Action: Staff recommends that the Council approve the first reading of Ordinance CCO-26-XX.

Packet

Page 5 ends

Packet

Page 36 ends

Packet

Page 40 ends

Packet

Page 48 ends

11. Public Hearing: Transient Occupancy Tax Ordinance
Background: It has recently come to the attention of City Staff that the Municipal Code has no mechanism for placing liens on businesses which fail to remit Transient Occupancy Tax.

Report By: Robert Gibson, Chief of Police
Recommended Council Action: Staff recommends that the Council approve the first reading of Ordinance CCO-26-XX.

CITY COUNCIL/STAFF REPORTING PERIOD

12. Council Reports on Attendance at Appointed/Outside Meetings

13. Future Agenda Items (Appearing on the agenda within 60-90 days): None a. Noise Ordinance
b. Tiny Homes on Wheels Ordinance Revision
c. Mobile Home Trash Utility Bill Increase Report
d. Water Bottling Municipal Code Update
e. Vacancy Tax
f. Analysis: Staff Time and Cost of Possible Annexation g. Funding of Forensic Analysis of Finance Department
h. Code Enforcement
Future Agenda Items Over 90 Days: None

14. Adjourn
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., Mt. Shasta, CA at the same time the public records are distributed or made available to the members of the legislative body. Agenda related writings or documents provided to a majority of the legislative body after distribution of the Agenda packet will be available for public review within a separate binder at City Hall at the same time as they are made available to the members of the legislative body.

The City of Mt. Shasta does not discriminate on the basis of race, color, national origin, sex, sexual orientation, religion, age or disability in employment or provision of services. In compliance with the Americans with Disabilities Act, persons requiring accommodations for a disability at a public meeting should notify the City Clerk or Deputy City Clerk at least 48 hours prior to the meeting at
(530) 926-7516 in order to allow the City sufficient time to make reasonable arrangements to accommodate participation in this meeting.

Packet

Page 68 ends

Contents
Consent Agenda……………………………………………………………………………..5
Approval of Minutes: July 13, 2026 Regular Meeting………….……….……………………5 Approval of Warrants and Payroll……………………………………………………….11 Monthly Investment Report……………………………………………………………...17
Parklet Ordinance Second Reading………………………….……………………………26 Beautification Committee Appointment: Kathleen Dugan………………………………….36 Staff Report……….………………….…….………………………………………..36
Committee Application….……………………………………………………………..37
Contract Extension: Wilson Construction…………………………………………………..40 Staff Report…………………………………………………………………………..40
Contract Amendment…………………………………………………………………..41
Original Agreement…………………………………………………………………....43
Rate Adjustment Amendment…………………………………………………………....47
Tiny Homes on Wheels Ordinance……………………………………………………….....48 Staff Report……………………………………………………………………….......48
Memorandum of Proposed Ordinance Revisions…………………………………………..50 Ordinance………………………………………………………………………….....60
CEQA Notice of Exemption………………………………………………………….......67 Transient Occupancy Tax Ordinance………………………………………………………..68 Staff Report…………………………………………………………………………...68
Amendment to Municipal Code………………………………………………………….69
Ordinance…………………………………………………………………………….79
Page Item STANDING AGENDA ITEMS

1. Call to Order and Flag Salute
At the hour of 5:36pm, Mayor Glaubman called the meeting to order and led the audience in the flag salute.

2. Roll Call
Council Members Present: Clure, Stackfleth, Redmond, Glaubman Council Members Absent: Collings

3. Special Presentations & Announcements: None

3. Public Comment:

Rachel Agron, Deputy City Clerk – Notes unusually high volume of commenters, invites members of the public who would like to voluntarily limit the length of their comments to one minute to come to the microphone first.

Alex Hookstrum – Comments regarding safety concerns at intersection of Lake Street and Chestnut Street.

Evan Drake – Comments regarding possible uses for former Crystal Geyser site.

Ken Nelson – Comments in favor of County-wide ban of data centers.

Kathleen Hansen – Comments regarding possible uses of former Crystel Geyser site.

Debby Derby – Thanks City Manager for making public aware of inquiry from data center developer, thanks Council members who posted on social media.

Niel Clausen – Comments in opposition to the development of any data center-related projects.

Member of the Public – Comments in opposition to the development of any data center-related projects.

Ken Madison – Comments in opposition to the development of any data center-related projects that would cause sleep disturbances.

Mayor Glaubman – Invites remaining commenters to come to the microphone.

Heidi George – Comments in favor of annexation of former Crystal Geyser site, comments in opposition to the development of any data center-related projects; suggests uses for the site.

Glenn Kaufman – Comments in favor of hydroponic food production at former Crystal Geyser site.

John Kenny – Comments regarding July 8th City Council special meeting, administrative leave of Todd Juhasz, City Manager; grand jury report of City of Montague.

Mt. Shasta City Council Regular Meeting Minutes
Mt. Shasta City Park Upper Lodge, 1315 Nixon Rd.

Monday, July 13th, 2026, 5:30 p.m.
5 Patricia Cararez – Comments in opposition to the development of any data center-related projects, comments in favor of hydroponic food production.

Roslyn McCoy – Comments regarding Siskiyou Economic Development, funding of tourism advertising.

Kristin Burke – Recommends that the City hire crisis management expert.

Mark Rogers – Comments in opposition to the development of any data center-related projects.

Bobbi Holeman – Comments in support of unity, comments in opposition to the development of any data center-related projects.

Dr. Holeman – Suggests possible uses for the former Crystal Geyser site.

Jack Trout – Comments in opposition to the development of any data center-related projects, suggests uses for the former Crystal Geyser site.

Philip Falkel – Comments in opposition to the development of any data center-related projects.

Tim Stearns – Comments regarding administrative leave of Todd Juhasz, City Manager; suggests that the Council hire an investigator through the League of California Cities.

Anastasia Sprout – Comments regarding administrative leave of Todd Juhasz, City Manager; comments in opposition to the development of any data center-related projects.

Afa – Comments regarding demographic and economic concerns; comments in favor of affordable housing, Tiny House on Wheels Ordinance.

Member of the Public – Asks question regarding administrative leave of Todd Juhasz, City Manager.

Aurea – Comments in support of civic engagement.

Councilmember Clure – Thanks the public for their participation, comments in support of civic engagement.

Mayor Glaubman – Comments regarding annexation process, calls recess.

Meeting resumes at 6:45pm.

4. Council and Staff Comments
Mayor Glaubman – Acknowledges comments regarding former Crystal Geyser site, notes confidentiality of personnel matters in regard to the administrative leave of Todd Juhasz, City Manager.

Councilmember Stackfleth – Comments regarding property liens and transient occupancy tax owed by Summit View Inn.

Robert Gibson, Chief of Police – Clarifies status of lien ordinance.

Mayor Glaubman – Notes efforts to address safety concerns at the intersection of Lake Street and Chestnut Street.

Councilmember Clure – Expresses support for uses of former Crystal Geyser sites aligning with clean water, the environment, and jobs.

Kim Fowler, Planning Director – Invites the public to attend July 14th Townhall Meeting.

Robert Gibson, Chief of Police – Invites public to attend July 14th Townhall Meeting. 6 6. Committee Updates:
a) Downtown Enhancement Advisory Committee
b) Library Tax Advisory Committee
c) Beautification Committee
d) Active Transportation Committee
Kim Fowler, Planning Director – Notes installation of new planters by the Beautification Committee.

Mayor Glaubman – Notes one vacancy on Planning Commission, two vacancies on Beautification Committee, one vacancy on Downtown Enhancement Advisory Committee.

CITY COUNCIL BUSINESS

7. Consent Agenda - The City Manager recommends approval of 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: June 22, 2026 regular City Council meeting; June 29, 2026 special City Council meeting; July 8, 2026 special City Council meeting b. Approval of Disbursements: Accounts Payable 5/20/2026, 5/27/2026, 6/4/2026, 6/16/2026, and 6/30/2026; Total Gross Payroll and Taxes: For the Periods Ending 5/28/2026, 6/11/2026, and 6/25/2026
c. Police Department Monthly Report
d. Mobilehome Rent Stabilization Ordinance Second Reading e. Property Tax Liens
MOTION TO APPROVE: Stackfleth
SECOND: Clure
AYES: Clure, Stackfleth, Redmond, Glaubman
NOES: None
ABSENT: Collings
ABSTAIN: None
7 8. Public Hearing: Parklet Ordinance
Kim Fowler, Planning Director – Comments regarding update of parklet ordinance, answers Council questions.

Public Hearing opened at 5:58pm
Public Comment:

Mark Rogers – Comments in favor of safety barriers around dining parklets.

Alex Hookstrum – Comments regarding dining parklets and possible development of one-way streets.

Mayor Glaubman – Clarifies possible development of one-way streets.

Gabriel – Comments in favor of dining parklets.

Roslyn McCoy – Comments in favor of disabled parking to offset impact of parklets.

Noah – Comments in favor of dining parklets.

Glen Kaufman – Comments in favor of removable parklets to accommodate snow season.

Afa – Comments regarding cost of insurance for small businesses; foot traffic, crosswalks.

Patricia Cararez – Comments in favor of disabled parking, decorating dining parklets.

Public Hearing closed at 7:06pm.

Council Comment:

Councilmember Stackfleth – Clarifies availability of dining parklets to any business.

MOTION: Councilmember Stackfleth moves to approve the first reading of Mt. Shasta Municipal Code Amendment to Chapter 19.03 regarding parklet dining to a second reading two weeks from now, by title only.

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

9. Professional Services Agreement: Interim City Attorney Rachel Agron, Deputy City Clerk – Reads attorney’s rates and notes status as contractor.

Andrew Jared, City Attorney (remote) – Greets Council.

Public Comment:

Roslyn McCoy – Asks questions regarding contract term and conflicts of interest; comments in favor of finding other representation.

Afa – Asks question regarding cost of retainer.

Jack Trout – Asks questions regarding attorney’s affiliations, conflicts of interest.

Council Comment:

Mayor Glaubman – Notes attorney’s work representing various nearby cities.

Andrew Jared, City Attorney – Clarifies affiliations, procedures for preventing conflicts; comments regarding availability of trainings for Council members.

MOTION: Councilmember Stackfleth moves to approve professional services agreement with Colantuono, Highsmith, & Whatley, PC as contracted City Attorney SECOND: Redmond
AYES: Clure, Stackfleth, Redmond, Glaubman
NOES: None
ABSENT: Collings
ABSTAIN: None
8 10. Appointment of Acting City Manager
Kim Fowler, Planning Director – Notes lack of staff report.

Councilmember Clure – Confirms willingness of Kim Fowler, Planning Director Andrew Jared, City Attorney – Comments regarding confidentiality of personnel matters.

Public Comment:

Tim Stearns – Comments in favor of reinstating Todd Juhasz, City Manager.

Anastasia Sprout – Asks Council to confirm or deny intent to fire Todd Juhasz, City Manager; asks question regarding length of administrative leave.

Andrew Jared, City Attorney – Comments regarding employment status of Todd Juhasz, City Manager; notes that administrative leave was not a disciplinary action.

Council Comment:

None.

MOTION: Councilmember Stackfleth moves to appoint Kim Fowler, Planning Director, as Acting City Manager.

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

11. Resolution Creating Opportunity Zone
Kim Fowler, Acting City Manager – Comments regarding availability of funding for eligible cities.

Quintin Gaddy, Siskiyou Economic Development Council – Clarifies tax incentive structure of opportunity zones.

Public Comment:

Aurea – Comments regarding opportunity zones, community investment.

Glenn Kaufman – Asks clarifying question.

Tim Stearns – Comments in favor of designation of opportunity zone.

Mark Rogers– Comments in favor of designation of opportunity zone, community investment.

Anastasia Sprout – Comments in opposition to designation of opportunity zone.

Bobbi Holeman – Comments regarding income threshold for qualifying opportunity zone communities.

Patricia Cararez – Comments regarding impact to seniors, low-income residents.

Roslyn McCoy – Comments regarding impact on grant eligibility, local economy.

Council Comment:

Kim Fowler, Acting City Manager – Comments regarding date change from July 25th to July 20th, need for amendment to resolution.

Mayor Glaubman – Comments in favor of growth and development.

MOTION: Councilmember Stackfleth moves to approve CCR-26-16, A Resolution of the City Council of the City of Mt. Shasta, California, in Support of the Nomination of Census Tract 06093001003 for Designation as a Federal Opportunity Zone under the “Opportunity Zones 2.0” Program, as amended by the City Planner.

SECOND: Clure
AYES: Clure, Stackfleth, Redmond, Glaubman
NOES: None
ABSENT: Collings
ABSTAIN: None
9 12. 22nd Avenue Contract Renewal
Kim Fowler, Planning Director – Comments regarding annual renewal of contract with 22nd Avenue Entertainment Logistics, answers Council question.

Public Comment:

None
Council Comment:

None
MOTION TO: Councilmember Stackfleth Moves to Approve Renewal of an Agreement with 22nd Avenue Entertainment Logistics for Public Meeting Livestreaming and Audio/Visual Services for the Period 2026 through 2027
SECOND: Clure
AYES: Clure, Stackfleth, Glaubman, Redmond
NOES: None
ABSENT: Collings
ABSTAIN: None

CITY COUNCIL/STAFF REPORTING PERIOD

13. Council Reports on Attendance at Appointed/Outside Meetings: None

14. Future Agenda Items (Appearing on the agenda within 60-90 days): None a. Property Lien Provision for Nonpayment of Transient Occupancy Tax b. Noise Ordinance
c. Tiny Homes on Wheels Ordinance Revision
d. Mobile Home Trash Utility Bill Increase Report
e. Water Bottling Municipal Code Update
f. Vacancy Tax
g. Analysis: Staff Time and Cost of Possible Annexation h. Funding of Forensic Analysis of Finance Department
i. Contract with Acting City Manager
j. Code Enforcement
Future Agenda Items Over 90 Days: None

15. Adjourn: There being no further business, the Council adjourned at 7:55pm Respectfully Submitted By: Rachel Agron, Deputy City Clerk 10 Accounts Payable
User:

Printed:
[email protected]
7/22/2026 8:02 AM
Checks by Date - Summary by Check Number
Check No Vendor No Vendor Name Check Date Check Amount
55242 300256 Colantuono, Highsmith & Whatley, PC 07/14/2026 4,000.00 55243 300185 AT&T 07/14/2026 35,639.03
55244 10402 AT&T MOBILITY FIRSTNET 07/14/2026 1,851.56
55245 11156 YOLANDE DIEDRE BELL 07/14/2026 200.40
55246 12213 CAL-ORE COMMUNICATIONS 07/14/2026 1,585.48
55247 12269 COMCAST BUSINESS 07/14/2026 423.39
55248 13062 DCS TESTING & EQUIPMENT INC 07/14/2026 2,340.00 55249 13224 DRY CREEK LANDFILL INC 07/14/2026 1,747.44
55250 15221 FRIENDS OF THE MT SHASTA LIBRARY07/14/2026 10,747.00 55251 16030 GANNETT CALIFORNIA LOCALIQ 07/14/2026 276.00 55252 34040 GOLD NUGGET PRINTING 07/14/2026 306.54
55253 18063 INTERSTATE BATTERY 07/14/2026 562.25
55254 20003 JONES CARPET CLEANING & JANITORIAL LLC 07/14/2026 500.00 55255 22140 KENNY & NORINE 07/14/2026 8,123.00
55256 22343 MT. SHASTA POINT S TIRE & AUTO 07/14/2026 224.95 55257 28120 NAPA AUTO PARTS 07/14/2026 287.22
55258 23023 NATIVE GROUNDS NURSERY AND LANDSCAPE INC 07/14/2026 599.07 55259 25020 PACE ENGINEERING INC 07/14/2026 990.00
55260 300204 PROGRESSION ENGINEERING 07/14/2026 114,192.79 55261 27000 RAMSHAW'S ACE HARDWARE INC 07/14/2026 192.64 55262 28466 SISKIYOU COUNTY TOURISM IMPROVEMENT DISTRICT 07/14/2026 23,649.20 55263 28560 SISKIYOU OPPORTUNITY CENTER 07/14/2026 887.50 55264 32060 SOLANOS INC 07/14/2026 305.93
55265 28740 STATE OF CALIFORNIA DEPARTMENT OF JUSTICE 07/14/2026 755.00 55266 29169 STATEWIDE TRAFFIC SAFETY & SIGNS DBA AWP SAFETY 07/14/2026 977.38 55267 300154 The Ascension Aesthetic 07/14/2026 8,746.67 55268 300113 The Radar Shop Inc 07/14/2026 282.00
55269 300253 T-Mobile 07/14/2026 382.69
55270 31023 VALLEY PACIFIC PETROLEUM 07/14/2026 4,344.49 55271 31031 VESTIS 07/14/2026 475.36
55272 34055 YREKA TRANSFER, LLC 07/14/2026 4,600.00
55275 12640 COLONIAL LIFE & ACCIDENT INSUR 07/14/2026 58.00 55276 13071 DELTA HEALTH SYSTEMS 07/14/2026 51,096.00
55277 16130 GOVINVEST INC 07/14/2026 7,500.00
55278 28380 SISKIYOU COUNTY PUBLIC HEALTH 07/14/2026 143.00 55279 UB*00026 KAREN BRANDAO 07/20/2026 25.30
55280 UB*00028 JUAN CARDENAS 07/20/2026 131.60
55281 UB*00027 BEVERLY SHANNON 07/20/2026 57.50
55282 30069 US BANK CORPORATE PAYMENT SYS 07/20/2026 10,499.11 Report Total (39 checks): 299,705.49
AP Checks by Date - Summary by Check Number (7/22/2026 8:02 AM) Page 1 11 From: Tri Counties Bank
To: Malisa Dodd
Subject: Tri Counties Bank - ACH Payment Status Change Notification Date: Wednesday, July 8, 2026 8:00:29 AM
ACH Notification
Report Date/Time 07/08/26 08:00:20 PDT
This transaction has been successfully completed.

Transaction Number: ACH-02138374
ACH Company: City Mt Shasta
Company Entry Description: PAYROLL
Payment Date: 07/09/2026
Total Credits: $91,963.96 (45)
Total Debits: $0.00 (0)
Status: Completed
12 To Be Paid Proof List
07/13/2026 - 3:15PM
[email protected]
Printed:

User:

Accounts Payable
Batch: 00001.07.2026 - 6/22/26-7/5/26 Payroll
Invoice Number Invoice Date Amount Quantity Payment Date Description Reference
Task Label Type PO # Close PO Line #
Account Number
CalPERS
300160
7/7/2026 3,586.31 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous PEPRA PR Batch 00001.07.2026 PERS Miscellaneous PEPRA 7/7/2026 1,657.90 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous PEPRA PR Batch 00001.07.2026 PERS Miscellaneous PEPRA 7/7/2026 3,669.61 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous PEPRA PR Batch 00001.07.2026 PERS Miscellaneous PEPRA 7/7/2026 1,696.45 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous PEPRA PR Batch 00001.07.2026 PERS Miscellaneous PEPRA 7/7/2026 1,440.01 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS FIre PEPRA PR Batch 00001.07.2026 PERS FIre PEPRA 7/7/2026 488.11 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS FIre PEPRA PR Batch 00001.07.2026 PERS FIre PEPRA 7/7/2026 1,456.77 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Fire PEPRA PR Batch 00001.07.2026 PERS Fire PEPRA 7/7/2026 493.78 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Fire PEPRA PR Batch 00001.07.2026 PERS Fire PEPRA 7/7/2026 2,011.04 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police PEPRA PR Batch 00001.07.2026 PERS Police PEPRA 7/7/2026 1,339.54 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police PEPRA PR Batch 00001.07.2026 PERS Police PEPRA 7/7/2026 2,034.43 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police PEPRA PR Batch 00001.07.2026 PERS Police PEPRA 7/7/2026 1,355.12 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police PEPRA PR Batch 00001.07.2026 PERS Police PEPRA 7/7/2026 286.73 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous Classic PR Batch 00001.07.2026 PERS Miscellaneous Classic 7/7/2026 161.07 0.00 07/07/2026 No 0
AP-To Be Paid Proof List (07/13/2026 - 3:15 PM) Page 1
*** means this invoice number is a duplicate.
13 Invoice Number Invoice Date Amount Quantity Payment Date Description Reference
Task Label Type PO # Close PO Line #
Account Number
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous Classic PR Batch 00001.07.2026 PERS Miscellaneous Classic 7/7/2026 544.05 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous Classic PR Batch 00001.07.2026 PERS Miscellaneous Classic 7/7/2026 233.16 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Miscellaneous Classic PR Batch 00001.07.2026 PERS Miscellaneous Classic 7/7/2026 569.59 0.00 07/07/2026 No 0
10-000-2155 Deferred Compensation Witheld PR Batch 00001.07.2026 Deferred Comp PERS PR Batch 00001.07.2026 Deferred Comp PERS 7/7/2026 381.77 0.00 07/07/2026 No 0
10-000-2155 Deferred Compensation Witheld PR Batch 00001.07.2026 Deferred Comp PERS PR Batch 00001.07.2026 Deferred Comp PERS 7/7/2026 1,048.36 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police Classic PR Batch 00001.07.2026 PERS Police Classic 7/7/2026 623.48 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police Classic PR Batch 00001.07.2026 PERS Police Classic 7/7/2026 433.31 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police Classic PR Batch 00001.07.2026 PERS Police Classic 7/7/2026 301.59 0.00 07/07/2026 No 0
10-000-2150 PERS Payable Witheld PR Batch 00001.07.2026 PERS Police Classic PR Batch 00001.07.2026 PERS Police Classic Total: 25,812.18
CalPERS Total: 25,812.18

EDD ACH
300177
7/7/2026 1,068.97 0.00 07/07/2026 No 0
10-000-2140 State Disability Ins Witheld PR Batch 00001.07.2026 State Disability Insurance PR Batch 00001.07.2026 State Disability Insurance 7/7/2026 608.69 0.00 07/07/2026 No 0
10-000-2140 State Disability Ins Witheld PR Batch 00001.07.2026 State Disability Insurance PR Batch 00001.07.2026 State Disability Insurance 7/7/2026 3,204.14 0.00 07/07/2026 No 0
10-000-2130 State Income Tax Witheld PR Batch 00001.07.2026 State Income Tax PR Batch 00001.07.2026 State Income Tax 7/7/2026 1,875.44 0.00 07/07/2026 No 0
10-000-2130 State Income Tax Witheld PR Batch 00001.07.2026 State Income Tax PR Batch 00001.07.2026 State Income Tax Total: 6,757.24
EDD ACH Total: 6,757.24
AP-To Be Paid Proof List (07/13/2026 - 3:15 PM) Page 2
*** means this invoice number is a duplicate.
14 Invoice Number Invoice Date Amount Quantity Payment Date Description Reference
Task Label Type PO # Close PO Line #
Account Number
Expertpay
300159
7/7/2026 155.95 0.00 07/07/2026 No 0
10-000-2184 Court Ordered Witheld PR Batch 00001.07.2026 Garnishment PR Batch 00001.07.2026 Garnishment 7/7/2026 190.20 0.00 07/07/2026 No 0
10-000-2184 Court Ordered Witheld PR Batch 00001.07.2026 Garnishment PR Batch 00001.07.2026 Garnishment Total: 346.15
Expertpay Total: 346.15
IRS
300158
7/7/2026 8,079.80 0.00 07/07/2026 No 0
10-000-2120 Fed Income Tax Witheld PR Batch 00001.07.2026 Federal Income Tax PR Batch 00001.07.2026 Federal Income Tax 7/7/2026 4,796.66 0.00 07/07/2026 No 0
10-000-2120 Fed Income Tax Witheld PR Batch 00001.07.2026 Federal Income Tax PR Batch 00001.07.2026 Federal Income Tax 7/7/2026 5,435.07 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 FICA Employee Portion PR Batch 00001.07.2026 FICA Employee Portion 7/7/2026 3,141.98 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 FICA Employee Portion PR Batch 00001.07.2026 FICA Employee Portion 7/7/2026 5,435.07 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 FICA Employer Portion PR Batch 00001.07.2026 FICA Employer Portion 7/7/2026 3,141.98 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 FICA Employer Portion PR Batch 00001.07.2026 FICA Employer Portion 7/7/2026 1,271.12 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 Medicare Employee Portion PR Batch 00001.07.2026 Medicare Employee Portion 7/7/2026 734.81 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 Medicare Employee Portion PR Batch 00001.07.2026 Medicare Employee Portion 7/7/2026 1,271.12 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 Medicare Employer Portion PR Batch 00001.07.2026 Medicare Employer Portion 7/7/2026 734.81 0.00 07/07/2026 No 0
10-000-2110 FICA Witheld PR Batch 00001.07.2026 Medicare Employer Portion PR Batch 00001.07.2026 Medicare Employer Portion Total: 34,042.42
IRS Total: 34,042.42
AP-To Be Paid Proof List (07/13/2026 - 3:15 PM) Page 3
*** means this invoice number is a duplicate.
15 Invoice Number Invoice Date Amount Quantity Payment Date Description Reference
Task Label Type PO # Close PO Line #
Account Number
Nationwide
300161
7/7/2026 592.21 0.00 07/07/2026 No 0
10-000-2155 Deferred Compensation Witheld PR Batch 00001.07.2026 Deferred Comp Nationwide PR Batch 00001.07.2026 Deferred Comp Nationwide 7/7/2026 132.79 0.00 07/07/2026 No 0
10-000-2155 Deferred Compensation Witheld PR Batch 00001.07.2026 Deferred Comp Nationwide PR Batch 00001.07.2026 Deferred Comp Nationwide 7/7/2026 1,043.00 0.00 07/07/2026 No 0
10-000-2155 Deferred Compensation Witheld PR Batch 00001.07.2026 Deferred Comp Nationwide 50 PR Batch 00001.07.2026 Deferred Comp Nationwide 50 7/7/2026 447.00 0.00 07/07/2026 No 0
10-000-2155 Deferred Compensation Witheld PR Batch 00001.07.2026 Deferred Comp Nationwide 50 PR Batch 00001.07.2026 Deferred Comp Nationwide 50 Total: 2,215.00
Nationwide Total: 2,215.00

STERLING HEALTH ADMINISTRATION
28815
7/7/2026 303.38 0.00 07/07/2026 No 0
10-000-2161 Flexible Spending Plan Payable PR Batch 00001.07.2026 HSA Deduction PR Batch 00001.07.2026 HSA Deduction 7/7/2026 171.62 0.00 07/07/2026 No 0
10-000-2161 Flexible Spending Plan Payable PR Batch 00001.07.2026 HSA Deduction PR Batch 00001.07.2026 HSA Deduction Total: 475.00
STERLING HEALTH AD 475.00
Report Total: 69,647.99
AP-To Be Paid Proof List (07/13/2026 - 3:15 PM) Page 4
*** means this invoice number is a duplicate.
16 City Council Agenda Item # 7c
Staff Report
Meeting Date: July 27, 2026
To: Mayor and City Council
From: Malisa Dodd, Director of Finance
Subject: Revenue Status Update, Monthly Investment and Financial Report Recommendation:

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

Background & Summary:

Sales Tax Revenue:

The city sales tax receipts total $1,332,946 through May 2026 for fiscal year 25-26. The budgeted amount for fiscal year 25-26 is $1,500,000 with 88.86% collected, while 91.7% of the way through the year. At this point I would revise the projection to $1,458,000 or $42,200 less than the adopted amount.

Current Year 25-26 Sales Tax Information
Budget Projection Jul-May Expected Jul-May Received 25-26 Deficit $1,500,000 $1,370,000 $1,332,946 ($37,054)
Prior Year 24-25 Sales Tax Information
YTD Received Jul-May Received CY vs PY difference
$1,522,870 $1,394,582 ($61,636)
Regular
X Consent
Closed
Presentation
17 18
Transient Occupancy Tax:

The city started collecting TOT revenue monthly in July of 2025 and receipts through May 2026 are $1,320,539 for fiscal year 25-26 with 81.78% of the budget collected. The budgeted amount for fiscal year 25-26 is $1,614,800.

Current Year 25-26 Transient Occupancy Tax Information
Budget Projection Jul-May Received June 2026 Needed
$1,614,800 $1,320,539 $294,260
Prior Year 24-25 Transient Occupancy Tax Information
YTD Received Jul-May Received CY vs PY difference Jun Received $1,596,668 $1,179,737 ($6,706) $416,931
Property Tax and Vehicle License Fees:

The city property tax receipts total $789,655 through June 2026 for fiscal year 25-26. The budgeted amount for fiscal year 25-26 is $849,745 with 92.93% collected.

Current Year 25-26 Property Tax Information
Budget Projection Jul-Jun Expected Jul-Jun Received Excess /(Deficit) Property Tax $849,745 $818,446 $789,655 ($60,090)
License Fees $442,828 $442,828 $441,563 ($1,265)
Prior Year 24-25 Property Tax Information
YTD Received Jul-Jun Received CY vs PY difference
Property Tax $783,591 $783,591 $6,064
License Fees $417,976 $417,976 $23,587
19 As of June 30, 2026, the combined funds the City of Mt. Shasta had invested in the Local Agency Investment Fund (L.A.I.F.) totaled $280,391.91. The statement is attached, along with the performance data as of July 15, 2026. Most surplus funds over which the City has control are currently invested in Concourse with a balance of $1,169,536.83. A money market account was set up with Tri Counties Bank for the Housing and Community Development funds received for the funding of the Mountain Townhomes project with DANCO and has a balance of $5,047,313.12. The balance of the City’s cash funds are held in a pooled account with Tri Counties Bank with a balance as of $5,525,306.07 plus reserve accounts.

Current investment rates are:

L.A.I.F. June 30, 2026 3.816%
Treasury Note – 3 month June 30, 2026 3.82%
Treasury Note – 2 Yr. June 30, 2026 4.18%
Treasury Note – 5 Yr. June 30, 2026 4.23%
Treasury Note – 10 Yr. June 30, 2026 4.47%
Treasury Note – 30 Yr. June 30, 2026 4.95%
Bloomberg as reported by Chandler Asset Management
The LAIF average decreased slightly from last month; most notes had a decrease. We continue to anticipate the LAIF rate to continue a slow decline. 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.

Attachments:
• LAIF Monthly Statement
• LAIF Performance Report
• LAIF Monthly Balances
• Chandler Asset Management
20

!
"

# $#%&%'("(

# )

%
* +

+
,
-. !
/-+/
*
/ 0
12!/1
33!2 (
'31/*+/
*
/40 +/
*
/ !%
%5 67789:;<9=>?@A
"5"'5 )

%

/
/
B 0 C.
..
67789:;D9==E@F /0 B.G

.

G

(## /H.,IG

2 .

G

(##
21 June 3.816
May 3.810
April 3.811
March 3.826
February 3.871
January 3.931
LAIF Apportionment Rate(2): 3.92
LAIF Earnings Ratio(2): 0.00010743238142967
LAIF Administrative Cost(1)*: TBD
PMIA Average Life(1): 269
LAIF Fair Value Factor(1): 0.998872382
PMIA Daily(1): 3.83
PMIA Quarter to Date(1): 3.81
Treasuries

57.20%
Agencies

21.76%
Certificates of
Deposit/Bank Notes

10.82%
Time
Deposits

2.78%
Commercial
Paper

6.72%
Corporate
Bonds

0.60%
Loans

0.12%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) .
*The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.

Source:
(1) State of California, Office of the Treasurer
(2) State of California, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 07/15/26
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 06/30/26
Chart does not include $749,000.00 in mortgages, which equates to 0.0004%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
06/30/26
$193.1 billion
22 Carrying Cost Plus
Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury:

Bills $ 53,956,293,642.15 $ 54,370,981,183.64 $ 54,354,702,900.00 NA Notes $ 56,514,737,009.67 $ 56,445,352,276.91 $ 56,275,628,050.00 $ 561,918,976.00 Federal Agency:

SBA $ 294,424,579.31 $ 294,362,735.60 $ 291,947,378.89 $ 986,566.00 MBS-REMICs $ 749,201.29 $ 749,201.29 $ 752,079.72 $ 3,268.33 Debentures $ 4,821,250,477.12 $ 4,820,475,477.12 $ 4,797,156,290.00 $ 32,773,460.10 Debentures FR $ - $ - $ - $ -
Debentures CL $ 2,250,000,000.00 $ 2,250,000,000.00 $ 2,235,928,900.00 $ 20,607,532.50 Discount Notes $ 24,126,368,402.78 $ 24,332,766,631.97 $ 24,316,144,700.00 NA Supranational:

Debentures $ 4,287,351,449.84 $ 4,285,202,838.72 $ 4,255,518,350.00 $ 52,039,494.00 Debentures FR $ - $ - $ - $ -
Debentures CL $ 500,000,000.00 $ 500,000,000.00 $ 499,001,700.00 $ 3,950,555.00 Discount Notes $ 5,749,777,055.58 $ 5,806,344,388.88 $ 5,803,113,000.00 NA CDs and YCDs FR $ - $ - $ - $ -
Bank Notes $ 600,000,000.00 $ 600,000,000.00 $ 599,120,644.11 $ 8,827,916.67 CDs and YCDs $ 20,300,000,000.00 $ 20,300,000,000.00 $ 20,290,310,776.13 $ 221,811,819.47 Commercial Paper $ 12,984,894,069.41 $ 13,095,711,486.04 $ 13,094,430,652.78 NA Corporate:

Bonds FR $ - $ - $ - $ -
Bonds $ 1,148,300,783.15 $ 1,072,418,454.44 $ 1,142,091,653.00 $ 10,875,810.26 Repurchase Agreements $ - $ - $ - $ -
Reverse Repurchase $ - $ - $ - $ -
Time Deposits $ 5,377,000,000.00 $ 5,377,000,000.00 $ 5,377,000,000.00 NA PMIA & GF Loans $ 235,475,543.00 $ 235,475,543.00 $ 235,475,543.00 NA TOTAL $ 193,146,622,213.30 $ 193,786,840,217.61 $ 193,568,322,617.63 $ 913,795,398.33 Fair Value Including Accrued Interest $ 194,482,118,015.96 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).

The value of each participating dollar equals the fair value divided by the amortized cost (0.998872382) As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,977,447.63 or $20,000,000.00 x 0.998872382 State of California
Pooled Money Investment Account
Market Valuation
6/30/2026
23 Treasury
Yields Trend 6/30/2026 5/29/2026 Change
3 month 3.82 3.68 0.14
2 year 4.18 4.01 0.17
3 year 4.18 4.05 0.13
5 year 4.23 4.14 0.09
7 year 4.34 4.28 0.06
10 year 4.47 4.44 0.03
30 year 4.95 4.97 (0.02)
Spread to
Treasuries
One Month
Ago Change
3-month top rated
commercial paper (0.10) 0.01 (0.11)
2-year A corporate
note 0.20 0.22 (0.02)
5-year A corporate
note 0.49 0.48 0.01
5-year Agency note 0.02 0.04 (0.02)
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the 8–4 split at April’s meeting, which marked Jerome Powell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance. The 2-year yield rose to 4.18% from 4.01% the prior month, while the 10-year yield was up slightly to 4.47% from 4.44%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 43 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Frontend rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

Source: Bloomberg
Market Summary
Bond Market Review
July 2026
U.S. Treasury Yields
Chandler Asset Management | 800.317.4747 | chandlerasset.com | Page 1 Source: Bloomberg; data as of 6/30/2026 Source: Bloomberg Credit Spreads Treasury Yields
Credit spreads were tighter in June Treasuries Stabilize After Early - Year Volatility as Curve Flattens and Front - End Yields Move Higher
As of June 30, 2026, the U.S. Treasury market has
navigated intermittent volatility seen earlier in the year, though conditions have stabilized relative to the sharp swings in January. Early-year turbulence—driven by
geopolitical tensions and concerns surrounding AIrelated exposures in technology and software equities— contributed to elevated rate volatility and sharp moves in the MOVE Index. By quarter-end, the yield curve has
instead flattened modestly, reflecting a rise in front-end yields alongside more anchored long-term rates.

Ongoing geopolitical risks and policy uncertainty remain potential catalysts for episodic flight-to-quality flows, which could place downward pressure on Treasury yields
over the balance of the year.
24 Equities
U.S. equities closed the first half of 2026 at record highs, led by continued strength in growth sectors. The S&P 500 finished June 30 at 7,449.36, up 8.82% from its December 31, 2025 close of 6,845.50. The Dow Jones Industrial Average rose 8.85% year to date to 52,319.20, while the Nasdaq Composite outperformed with a

12.79% gain, ending at 26,213.72. The rally was supported by robust first-quarter earnings with a broad majority of companies exceeded consensus estimates on both revenue and earnings per share, even as higher energy costs and geopolitical tensions weighed on consumer sentiment.

Consumer Prices
Inflation firmed in May, with the Personal Consumption Expenditures (PCE) price index rising 0.4% on the month and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE, which excludes food and energy, increased 0.3% in May and 3.4% over the year. Energy prices remained the primary driver of the headline acceleration, reflecting supply disruptions tied to the Iranian conflict. A similar pattern was evident in the headline Consumer Price Index (CPI), which rose 0.5% on the month and 4.2% year over year, the fastest annual pace since 2023. Energy prices climbed 3.9% in May and 23.5% from a year earlier, largely due to crude oil reaching a four-year high. In contrast, core CPI rose a more modest 0.2% on the month and 2.9% year over year, indicating that inflation pressures remain concentrated in energy rather than broad-based.

Retail Sales
Retail sales increased 0.9% in May, surpassing the 0.6% consensus estimate and pointing to broad-based consumer spending, according to the Census Bureau. April was revised up to a 0.4% gain. The control group, which feeds directly into GDP, rose 0.7% month over month. Gasoline stations led with a 3.4% increase amid elevated fuel prices, while nonstore retailers climbed 1.5% and were up 12.2% year over year.

Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 93.1 in May from a revised

93.8 in April. The survey period captured the preliminary Iran ceasefire and an equity market rebound, which helped offset earlier pressure on sentiment from rising energy prices.

Labor Market
The May employment report depicted a labor market more resilient than recent months had suggested.

Nonfarm payrolls advanced by 172,000, well above the consensus estimate for an 88,000-gain, while unemployment held at 4.3% for the fourth of the last five months. Revisions reinforced the strength, as March moved up from 178,000 to 214,000, and April rose from 115,000 to 179,000. Leisure and hospitality led the gains, joined by local government and health care, while financial activities shed positions.

Housing Starts
Housing starts declined 15.4% in May to an annualized rate of 1.177 million units, down from a revised 1.392 million in April, with single-family starts at 882,000 and multifamily at 295,000. Building permits totaled

1.413 million units. Home price growth continued to soften, with the S&P CoreLogic Case-Shiller 20-City Composite Index rising 0.8% year over year in March, down from 0.9% in February and marking the slowest pace since July 2023. Chicago led gains at 6.1%, while Seattle lagged at -2.5%. Meanwhile, the Freddie Mac 30-year fixed mortgage rate averaged 6.44% in May, down from 6.81% a year earlier.

Economic Indicator Current Release Prior Release One Year Ago Trade Balance (55.88) $B Apr. 30 (56.59) $B Mar. 31 (60.34) $B Apr. 30 Gross Domestic Product 2.10% Jun. 30 2.10% Mar. 31 3.80% Jun. 30 Unemployment Rate 4.20% Jun. 30 4.30% May 29 4.10% Jun. 30 Prime Rate 6.75% Jun. 30 6.75% May 29 7.50% Jun. 30
Refinitiv/CoreCommodity CRB Index 353.61 Jun. 30 380.45 May 29 297.28 Jun. 30 Oil (West Texas Int.) $69.50 Jun. 30 $87.36 May 29 $65.11 Jun. 30 Consumer Price Index (YoY) 4.20% Jun. 30 3.80% May 29 2.40% Jun. 30 Producer Price Index (YoY) 9.10% Jun. 30 6.50% May 29 1.20% Jun. 30 Euro/Dollar 1.14 Jun. 30 1.17 May 29 1.18 Jun. 30
Economic Roundup
Chandler Asset Management | 800.317.4747 | chandlerasset.com | Page 2 Source: Bloomberg
Market Data
Data as of 6/30/2026
1- Mo Chg % Chg
S&P 500
7,499.36 (80.70) (1.06%)
NASDAQ
26,213.72 (758.90) (2.81%)
Dow Jones
52,319.20 1,286.74 2.52%

FTSE (UK)
10,497.12 87.84 0.84%
DAX (Germany)
24,995.81 (108.89) (0.43%)
Hang Seng (Hong Kong)
22,881.02 (2,301.37) (9.14%)
Nikkei (Japan)
70,062.32 3,732.82 5.63%
World Stock Market Index Descriptions
S&P 500–The S&P 500 is a market valueweighted index of 500 large-capitalization stocks.

The 500 companies included in the index
capture approximately 80% of available US
market capitalization. NASDAQ–The NASDAQ
Composite Index is the market capitalizationweighted index of over 3.300 common stocks listed on the NASDAQ stock exchange. Dow
Jones–The Dow Jones Industrial Average is an
index that tracks 30 large, publicly-owned
companies trading on the New York Stock
Exchange and the NASDAQ. The Financial Times
Stock Exchange Group (FTSE)–The FTSE is a share
index of the 100 companies listed on the London
Stock Exchange with the highest market
capitalization. DAX–The Deutscher Aktienindex
(DAX) is a blue chip stock market index
consisting of the 30 major German companies
trading on the Frankfurt Stock Exchange. Hang
Seng–The Hang Seng Index is a freefloatadjusted market-capitalization- weighted stock market index in Hong Kong. It is used to record
and monitor daily changes of the largest
companies of the Hong Kong stock market and is
the main indicator of overall market
performance in Hong Kong. Nikkei–Japan's Nikkei
225 Stock Average is a price-weighted index
composed of Japan's top 225 blue-chip
companies traded on the Tokyo Stock Exchange.
© 2026 Chandler Asset Management, Inc. An independent, SEC-registered investment adviser. Data source: Bloomberg, Federal Reserve, and the US Department of Labor. This report is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as an indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation, or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest rate, credit, and market risk. Interest rate risk: The value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low-rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market, in general, could decline due to economic conditions, especially during periods of rising interest rates. The S&P Corelogic Case-Shiller home price index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the nation. 25 ORDINANCE CCO-26-03
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MT. SHASTA AMENDING MT. SHASTA MUNICIPAL CODE CHAPTER 19.03

PARKLET DINING REGULATIONS
The City Council of the City of Mt. Shasta does hereby ordain as follows:

CHAPTER 19.03 PARKLET DINING
SECTION 19.03.010 PURPOSE AND INTENT
(A) The purpose of this chapter is to provide the conditions and requirements under which businesses may be allowed to construct, operate, and maintain outdoor parklets within the City. (Ord. CCO-23-04, 2023)
SECTION 16.09.020 DEFINITIONS
(A) “Parklet” means a temporary, non-permanent platform constructed within the traveled portion of right-of-way that replaces one or more parallel, perpendicular, or diagonal parking space(s) and all associated furnishings. A platform may be built to bring the grade of the sidewalk out into the street. Once the platform is installed, furnishings such as tables, chairs, benches, bike parking, and/or landscaping may be placed on the platform. (B) “Sidewalk cafe” means outdoor dining, with all associated furnishings, located on a public sidewalk immediately adjacent to and abutting the indoor restaurant which operates the cafe.
(C) “On-street dining” means a parklet located within the parking lane of a public street immediately adjacent to the indoor restaurant which operates the dining area. (D) “Temporary street closures” means the closure of part or all of the travel lane(s) of a public street adjacent to participating businesses for a limited period of time. (E) “Private parking lot extension” means the extension of a business’ operations into a private parking lot adjacent to the business operating the extension. (F) “Fixture” means any object permanently attached to a property by way of bolts, screws, nails, glue, cement, or other means. (Ord. CCO-23-04, 2023)
SECTION 19.02.030 LIMITATIONS
(A) Eligible Areas. Areas adjacent to commercially zoned properties within the City limits of Mt.

Shasta on the east and west sides of South Mt. Shasta Boulevard from Sisson Street to Lake Street, continuing from Lake Street North to Alma Street. Additionally, parklets will be allowed adjacent to commercially zoned properties on the east and west sides of Chestnut Street from Mt. Shasta Boulevard to Alma Street and Castle Street between Alder and Maple. (B) Location Limitations. No parklet shall be approved within one parking space’s distance (20 feet) from a corner or intersection unless a protective bollard or another similar feature is installed and approved by the City. The parklet program limits the number of allowed parklets within specified area as follows:
26 1. South Mt. Shasta Boulevard: From Sisson Street to the intersection with Lake Street; two parklets per City block on either side of the street.

2. North Mt. Shasta Boulevard: From the intersection with Lake Street to the intersection with Alma Street; five parklets per City block on either side of the street.

3. Chestnut Street: From the intersection with South Mt. Shasta Boulevard to Alma Street; five parklets per City block on either side of the street. (C) Traffic Limitations. No parklet shall be approved within one parking space’s distance (20 feet) from a corner or intersection unless a protective bollard or another similar feature is installed and approved by the City. The parklet program limits the number of allowed parklets within specified area as follows:

1. Parklets may be permitted on active public streets with a speed limit of 25 miles per hour or less.

2. Parklets must be at least 20 feet from any street corner or intersection, and 20 feet from any active driveway connection, unless it is determined by the City that a lesser setback will provide the appropriate visibility for drivers exiting and entering the driveway.

3. Traffic barriers are required when the edge of a parklet is exposed to oncoming traffic and is not protected by an adjacent parking stall.
(D) Utilities and Public Safety.

1. Parklets must be placed to maintain access to all surface utilities such as sewer manholes, water meter boxes, water valve covers, and underground vaults at all times.

2. Parklets must provide at least seven and one-half feet of clear access to all fire hydrants and Fire Department connections.

3. Prior to Planning Commission approval, the Public Works Director and/or City Engineer must evaluate the traffic conditions altered by the construction of the parklet. Once approved, the applicant must apply for an encroachment permit and provide proof of insurance consistent with City requirements. (Ord. CCO-26-03, 2026) SECTION 19.03.040 APPLICATION PROCEDURE
Businesses located within designated area may apply for a parklet permit and an encroachment permit following the review and approval by the City. The Planning Commission shall review and approve new applications, as well as renewal applications with significant changes. The Planning Director shall review and approve renewal applications with no significant changes.

New applications shall be submitted to the City Planning Department and shall contain, at a minimum, the following information:
(A) A brief description that includes the name of the business, a description of the proposed parklet, and the number of seats.
(B) Initial site plan showing the proposed outdoor parklet space drawn to scale including sidewalk clearance requirements, elevations, furniture, and handicap access. (C) Final construction documents that show parklet location and elevations from all sides, 27 sections or cut-through drawings of the design, and construction details for the assembly. (D) Submission of color photos, renderings, and materials to be used in the construction of the parklet with specific detail on the materials to be used in the parklet barriers. (E) Encroachment, parklet permit applications, proof of insurance naming the City as additionally insured at an amount consistent with City policy.
(F) Submission of letters of support from property owners adjacent to and fronting the proposed parklet project. At a minimum, applicant should submit copies of correspondence demonstrating that property owners have been notified.

Renewal applications shall be submitted to the City Planning Department and shall contain, at a minimum, the following information:
(A) A statement indicating whether there are any significant changes to the previous years’ application, including but not limited to outdoor parklet space, sidewalk clearance requirements, elevations, furniture, and handicap access. (B) Submission of color photos showing existing condition of outdoor parklet space. (C) Encroachment permit applications and proof of insurance naming the City as additionally insured at an amount consistent with City policy. (Ord. CCO-26-03, 2026) SECTION 16.09.050 PERMIT DURATION
Parklet permits and encroachment permits will be issued for a 12-month period and must be renewed annually. The City may deny the extension of the permit if existing conditions change or are confirmed to be imminently scheduled to change in the general area and the parklet is no longer able to meet the published requirements when requesting renewal. Permits may also be denied if the applicant is found to be consistently noncompliant with any element of their permit. Permits are nontransferrable without written consent from the City. (Ord. CCO-23-04, 2023) SECTION 16.09.060 DESIGN AND OPERATIONAL REQUIREMENTS FOR ALL PARKLETS Parklets must be constructed to sit securely on existing surfaces without any anchors or excavated footings and be designed for easy removal. In addition, parklets shall include the following design and operational considerations:
(A) Parklets must comply with all ADA requirements.
(B) If an applicant intends to serve alcohol in the parklet, State Alcohol and Beverage Control Department authorization shall be secured by applicant/owner prior to commencement of parklet construction.
(C) Federally mandated sidewalk clearances for continuous pedestrian/handicapped access along the public sidewalk shall be provided. The minimum clearance distance to be maintained shall be 60 inches measured from the exterior of the building to the edge of curb or any permanent pole, hydrant, tree, planter or any other obstruction. The City may require additional distance where warranted.
28 (D) Parklets must comply with all storm water and drainage requirements. Parklets shall not impede the flow of drainage.
(E) Parklets shall be located at least 20 feet away from an intersection or street corner. (F) Parklets shall not extend more than six feet into parallel parking stalls. (G) Parklets shall be flush mounted with the adjacent curb. (H) Parklets shall not be located within 20 feet of a driveway. (I) Parklets should be designed for easy removal.
(J) Parklets shall install 36-inch guideposts with reflective elements between corner ends of the parklet facing the street.
(K) Bolting and penetrating the surface of the street in any way is not allowed. (L) Exterior edges must be a minimum of 36 inches tall. Exterior edges may be a fixture, planter, or bench.
(M)Landscaping such as hanging plants, potted plants, small bushes, flowers, vines may be provided within the parklet to the satisfaction of the Planning Commission. (N) Planters shall not be permanently affixed to the public right-of-way or parking areas. Plants within the planter shall be maintained in a way that does not interrupt traffic or pedestrian access. (O) Lighting is required at night. All lighting must be downward facing and be turned off outside of operating hours.
(P) Business identification signs shall be in conformance with the City’s approved sign ordinance. (Q) Hours of operation for parklets shall be limited to 7:00 a.m. to 10:00 p.m. (R) Any furnishings which are not secured to the parklet shall be removed daily at close of business and must be labeled as property of the business.
(S) Subject to City approval, the owner of a parklet may make improvements to the public sidewalks such as repairing the concrete, patching holes or cracks, installing pavers and generally improving the quality and appearance of the surface.
(T) Separate electrical and plumbing permits are required for any temporary wiring or plumbing connections.
(U) Maintenance, leaf litter, cinders, and litter removal is the responsibility of the applicant/owner.

Failure to maintain the parklet may result in the revocation of the permit and/or issuance of a noncompliance administrative fee of $100.00 dollars per day. (V) Extended lack of use, more than two weeks, may result in the revocation of the permit. (Ord. 29 CCO-26-03, 2026)
SECTION 19.00.070 DESIGN EVALUATION
The following evaluation criteria will be used to evaluate the design of parklet applications:
(A) Design Quality. The quality and creativity of the design; the quality and durability of proposed materials and furniture.
(B) Streetscape Enhancement. How the proposed parklet will enhance the aesthetic quality of the streetscape.

The City of Mt. Shasta reserves the right to adjust these requirements and standards as necessary to respond to existing conditions on a case-by-case basis. (Ord. CCO-23-04, 2023) SECTION 19.03.080 DESIGN STANDARDS
(A) All outdoor dining areas must maintain:

1. A minimum four-foot distance between tables and chairs.

2. Pedestrian and traffic safety and access.

3. A clear path of t ravel to public utilities, fire hydrants, building entrances, crosswalks, and transit stops.

4. ADA standards on City sidewalks and paths of t ravel to and from businesses. (B) Parklet decking must be designed such that the parklet has a vertical lip of no more than onequarter inch as it connects to the curb and may not have more than a one-half-inch gap from the curb. The submitted design must demonstrate that the deck is compliant with ADA accessibility requirements.
(C) The parklet design may include vegetation in the form of planters. (D) All rails must be capable of withstanding a 200-pound horizontal force. (E) Design must maintain a minimum five-foot clear pedestrian through zone in the sidewalk corridor.
(F) Parklet Footprint – Parallel Parking. Twenty-four-inch setback on either end of the parklet, adjacent to parallel parking, and to the roadway shall be maintained. Wheel stops may be used but are not required. If proposed, wheel stops will be installed by the applicant and inspected by the City after final facility construction is complete. (G) Parklet Footprint – Diagonal Parking. For diagonal parking and perpendicular parking spaces, the edge of the parklet must be set back 18 inches from the adjacent parking space on either side.

This setback space must be included within the parklet space and not taken from the adjacent spaces.
(H) Parklet design must include a physical barrier along the street while maintaining clear visual 30 sightlines to the street. Vertical elements, such as planters and umbrellas, should be included so that the facility is visible to vehicles.
(I) To protect a parklet in a parallel parking space from parking maneuvers, substantial planters, weighted bollards, or other structures that can withstand light vehicular impact, must be installed on either end of the parklet and at the street edge. Parklets in diagonal parking spaces are not required to have such substantial edge materials, except for the side and corners at the street edge. Additional traffic safety items may be added to the final design by City staff. (J) Establishments with less than 20 tables total must make one table ADA accessible. Establishments with more than 20 tables total, must make five percent of the tables ADA accessible. (K) Surface Materials. Loose particles, such as sand or loose stone, are not permitted on the parklet.

A nonslip surface is required.
(L) The parklet platform may not be attached to or damage the street and must be easily assembled and disassembled. Any damage to the street is the responsibility of the applicant. (M)The parklet platform must be designed to allow for curb line stormwater drainage and include a minimum 12-inch gutter bar. The parklet platform must be designed to not allow debris to collect under the deck.
(N) The parklet platform must be designed to accommodate the crown and the cross slope of the street surface.
(O) All plans must clearly articulate the spans and supports to be used for the body of the parklet. (P) Roof structures, canopies, covers are permitted in parklets. (Q) Applicants proposing overhead structures or other architectural features that may catch wind must demonstrate that the structures can withstand wind loads specified by the Building Inspector. Applicants must demonstrate that said structures and canopies pose no risk to the surrounding neighborhood during storms or other instances of severe weather conditions. The Building Inspector may require the plans for overhead structures like canopies to be stamped by an engineer to ensure they are designed in accordance with Building Code wind criteria. (R) Any proposed overhead structure or other architectural feature shall not be designed to concentrate stormwater runoff unless with an approved collection system approved by the Building Inspector in accordance with Building Code criteria. (S) Applicant proposing a cover must demonstrate that visual obstruction to adjacent businesses, both storefronts and identifying signage, is minimalized. (T) Umbrellas are permitted; adjacent line of sight must be maintained and the umbrellas must be contained within the parklet. Umbrellas must have a maximum diameter of eight feet. (U) Food preparation in parking lots or public rights-of-way is prohibited. 31 (V) Outdoor heating, cooking, or open flames are prohibited. (W)Portable outdoor gas-fired heating appliances, such as propane heaters shall:

1. Be located at least five feet from buildings; and.

2. Not be located beneath or closer than five feet to combustible overhangs, sunshades, or similar combustible attachments to the building or parklet. (X) Design Permanence and Character.

1. Parklets plans must demonstrate structural and design permanence at the determination of the Building Official and/or Planning Director considering factors including, but not limited to, structural integrity, decking rigidity, railing strength, material durability, structurally integrated vertical elements, commercial grade materials specified for exterior use, etc. Evaluation criteria shall be:
a. Construction Materials and Techniques. Parklet plans shall specify high-quality construction materials (such as masonry, heavy timber, cast-iron or steel frames, etc.) and techniques appropriate for commercial application and long-term durability. b. Vicinity Design Context. Parklet design character shall explicitly reference desirable vicinity context such as distinguishing architectural and streetscape qualities. c. Coherent Design Character. Parklet design shall be expressed in a simple, elemental fashion referencing vicinity character and material context. (Ord. CCO-26-03, 2026) SECTION 19.03.090 SIDEWALK CAFES
In addition to all general parklet requirements and design elements of this chapter, omitting those related to street dining, a sidewalk cafe may be permitted only if the sidewalk cafe is situated adjacent, as specified below, to an indoor restaurant, the sidewalk cafe’s operation is incidental to and a part of the operation of such adjacent indoor restaurant, and the sidewalk cafe adheres to the following requirements:
(A) A sidewalk cafe may be located on the public sidewalk immediately adjacent to and abutting the indoor restaurant which operates the cafe. The cafe area may extend along the principal building frontage and may extend up to 50 feet on non-principal front with property owner approval. (B) No furniture is allowed within six feet of a crosswalk, corner curb cut, or large obstruction (e.g., bus stop shelter, electric transformer, etc.).
(C) The sidewalk café must maintain clearance of six feet around the corners of all other sidewalk cafes.
(D) The sidewalk café must maintain two feet of clearance from any building access. (Ord. CCO-23- 04, 2023)
SECTION 19.03.100 ON-STREET DINING
In addition to all general parklet requirements and design elements of this chapter, parklets designed 32 for on-street dining may be permitted only if they conform to the following requirements:
(A) On-street dining may extend in the parking lane along the principal building frontage of the business and along principal frontage of adjacent business with property owner approval. (B) On-street dining must use vertical partitions (e.g. cones, barrels, gates, bike corrals, etc.) spaced a minimum of 10 feet apart.
(C) Clearance between the curb and travel lane must be a minimum of seven feet. (D) No vertical partition or furniture may protrude into the travel lane. (E) No accessible parking (handicap parking) spaces may be used for outdoor dining. (F) There shall be no more than one-half inch between planks of a platform. (G) The platform must be flush with the curb to eliminate tripping hazard. (H) Additional application requirements:

1. Platform on-street dining requires a sketch/diagram of platform design.

2. Platform approval is based on City Engineer approval. (Ord. CCO-23-04, 2023) SECTION 16.09.110 TEMPORARY STREET CLOSURES
Businesses may participate in temporary street closures provided they conform to the following requirements:
(A) Participating Businesses:

1. Two points of contact required for each restaurant.

2. Each participating business must agree to the terms of the street closure. (B) Delineation must be used to indicate the area under individual restaurant management (no open festival format).
(C) Restaurants may be required to monitor and maintain a maximum capacity in closure zone. (D) Street shall be kept free of trash and containers kept clean and emptied when full. (E) Street closure will not require a special event permit. (F) Amplified performance acts are prohibited. Amplified music is permitted as long as noise levels do not disturb neighboring uses. (Ord. CCO-23-04, 2023) SECTION 19.03.120 PRIVATE PARKING LOT EXTENSION
Businesses may develop a private parking lot extension provided they conform to the following requirements:
33 (A) All uses permitted on the lot may conduct business outdoors. (B) Eating and drinking establishments and retail sales may operate on a lot if permitted in the base zoning district, notwithstanding any requirements for parking. (C) Tents may be erected with Fire Department approval. (D) Separate construction permits are required for any structures occupied by the public. (E) Amplified performance acts are not allowed. Amplified music is allowed as long as noise levels do not disturb neighboring uses.
(F) No accessible parking (handicap parking) spaces may be used for outdoor dining or blocked by outdoor seating. (Ord. CCO-23-04, 2023)
SECTION 19.03.130 FEES
The base application fee for all new parklets shall be $250.00 payable at time of application and is nonrefundable.

Applicants for private parklets, who wish to allow for table service and/or consumption of alcohol, will be charged $50.00 per month per parking space used in addition to the base application fee. (Ord. CCO-23-04, 2023)
SECTION 19.03.140 INSURANCE
Approved applications shall be required to provide evidence of liability insurance naming the City of Mt. Shasta as additional insured as set forth by the Joint Powers Authority’s requirements for risk management. The insurance certificate is intended to protect the public from any liability it may incur as a result of the granting of the requested permit.

Minimum requirements for liability insurance:
(A) The insurance shall provide coverage not less than $2,000,000 or $4,000,000 per occurrence depending upon the parameters outlined in the encroachment permit. The policy shall include the following endorsements:

Without prejudice to coverage otherwise existing herein, the City of Mt. Shasta, its officers, agents, and employees are included as additional insured under this policy claim or claims for injury to person including death, or damage to property, resulting from or growing out of the operations of the permittee within the City of Mt. Shasta. (Ord. CCO-23-04, 2023) SECTION 19.03.150 MAINTENANCE
The parklet will be owned and maintained by the applicant. The applicant is responsible for all costs associated with the design, development, construction, installation, maintenance, and removal of the parklet. If an application is approved, this represents that the applicant shall keep the parklet free of debris, grime and graffiti, and to keep all plants in good health. 34 The permit obligates the applicant to ensure that the facility is swept daily and debris is removed from under and around the parklet a minimum of once a week. The applicant is subject to an approved maintenance plan and agreement as part of the permit and maintenance will be enforced by the City. (Ord. CCO-23-04, 2023)
The foregoing Ordinance was adopted at the regular meeting of the City Council of the City of Mt. Shasta held on this 27th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

ATTEST: CITY OF MT. SHASTA
_______________________________ _______________________________ Rachel Agron, Deputy City Clerk Casey Glaubman, Mayor
FORM APPROVED:
_______________________________
Andrew Jared, City Attorney

CERTIFICATION
I HEREBY CERTIFY that the foregoing Ordinance CCO-26-03 was introduced, by title only, at a regular meeting of the Mt. Shasta City Council on the 13th day of July, 2026, and was adopted at a regular meeting of said Council on the 27th day of July, 2026.
_______________________________
Rachel Agron, Deputy City Clerk

35 City Council Agenda Item #8
Staff Report
Meeting Date: July 27, 2026
To: Mayor and City Council
From: Rachel Agron, Deputy City Clerk
Subject: Beautification Committee Appointment: Kathleen Dugan Recommendation:

Staff recommends that the City Council appoint Kathleen Dugan to serve on the Beautification Committee.

Background & Summary:

Kathleen Dugan has volunteered to serve on the Beautification Committee. While the Committee has five seats, it has been comprised of only three members for several years now.

Appointing a fourth member will allow the Committee to have greater stability.

Attachments:

Beautification Committee Application
X Regular
Consent
Closed
Presentation
36 37
38 39
CITY COUNCIL AGENDA ITEM #9
MEETING DATE: July 27, 2026
TO: Mayor and City Council
FROM: Ken Kellogg, Public Works Director
SUBJECT: Approval of Extended Lease with Wilson Construction at The Landing RECOMMENDATION:

Staff respectfully request that the City Council approve extending a lease with Wilson Construction for a storage yard at The Landing. Extension is from 4/01/26 to 3/31/27.

BACKGROUND:

The City of Mt. Shasta entered into a land rental agreement with Wilson Construction on 7/21/25 for $650/month. This was quickly followed in August by an amendment increasing the area being rented and adjusting the monthly rental rate to $1200/month. The rental agreement was to end on 12/31/25. In December, it was extended to 4/01/26.

Wilson Construction is now requesting an additional extension from 4/01/26 to 3/31/27. The rate will remain the same. Because the proposed extension will exceed 12 months from the initial date of 7/21/25, it is necessary to gain city council approval.

We request Council approval to extend a land lease with Wilson Construction for a storage yard at The Landing from 4/01/26 to 3/31/27. The monthly rent will remain at $1200/month.

X Regular Session
Special Session
Emergency
Session
Closed Session
40 (1733 S Mt. Shasta Blvd, Mt. Shasta, CA 96067)
11941342v3 (74726.00247.000)

AMENDMENT TO GROUND RENTAL AGREEMENT
This Amendment to Ground Rental Agreement ("Amendment") is made and entered into to be effective April 1, 2026 ("Effective Date") by and between City of Mt. Shasta ("Landlord"), and Wilson Utility Construction Co. ("Tenant").

WITNESSETH:

WHEREAS, Landlord and Tenant entered into that certain Ground Rental Agreement dated July 28, 2025, as amended by the parties on August 21, 2025, and December 12, 2025 (collectively, the "Ground Rental Agreement"), covering real property in Mt. Shasta, California located at 1733 S.

Mt. Shasta Blvd., Mt. Shasta, CA 96067, as further described therein (the "Premises"); and WHEREAS, the term of the Ground Rental Agreement , as previously extended on December 12, 2025, will terminate on April 1, 2026 (the "Term"); and WHEREAS, Landlord and Tenant now desire to extend the Term of the Ground Rental Agreement , as more particularly set forth below;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged by the undersigned, the parties hereto do agree as follows:

1. The Term of the Ground Rental Agreement is extended for twelve (12) months beginning April 1, 2026, and ending March 31, 2027 (the "Extended Term").

2. Rent, as defined in the Ground Rental Agreement and as amended by the parties on August 21, 2025, to $1,200.00 per month, will remain unchanged during the Extended Term.

3. All notices and correspondence sent by Landlord to Tenant shall be copied to:

Quanta Services, Inc.
2727 North Loop West
Houston, Texas 77008
Attn: General Counsel & Real Estate Portfolio Manager
All capitalized terms in this Amendment, if not defined herein, are defined as provided in the Ground Rental Agreement . The forgoing recitals are true and correct and incorporated herein.

Each person executing this Amendment represents that the party on whose behalf the person is executing this Amendment has duly authorized the execution of this Amendment and that such person is authorized to execute this Amendment on behalf of such party.

Except as otherwise expressly modified in this Amendment, the terms, covenants, and conditions of the Ground Rental Agreement shall remain the same, and the terms, covenants, and conditions of the Ground Rental Agreement are hereby ratified and affirmed by Landlord and Tenant.

This Amendment may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. To expedite the execution of this Amendment, a facsimile or electronic signature shall be binding and have the same effect as an original signature. 41 (1733 S Mt. Shasta Blvd, Mt. Shasta, CA 96067)
11941342v3 (74726.00247.000)
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the Effective Date.

LANDLORD:

City of Mt. Shasta
By: _____________________________
Name: __________________________
Title: ___________________________
TENANT:

Wilson Utility Construction Co.

By: _____________________________
Name: __________________________
Title: ___________________________
42 GROUND RENTAL
THIS GROUND RENTAL AGREEMENT ("Agreement") is made as of July 28, 2025, by and between Wilson Utility Construction Co. (Wilson), as the Tenant, and City of Mt Shasta as Landlord under the following circumstances.

RECITALS
A. The Landlord owns certain real property in Mt Shasta California, and which is more particularly described in Exhibit A (the "Rented Premises").

B. Wilson Construction desires to rent the Rented Premises in "as is" condition, subject to the conditions herein, for the construction, maintenance and use of a storage area to be used by Wilson. The Rented Premises may be improved by Wilson, at its expense with permission from Landlord.

NOW, THEREFORE, in consideration of the promises and the mutual agreements set fo1th in this Agreement, the Landlord and Wilson agree as follows:

Section 1. Demise of Premises.

Landlord hereby rents to Wilson and Wilson rents from Landlord the Rented Premises, as well as all rights, appmtenances, interests, easements and privileges belonging or appe1taining thereto.

Notwithstanding the foregoing, the Landlord may terminate this Agreement by written notice to Wilson, who shall have forty five (45) days from receipt of the written notice to relocate its materials, improvements, operation and possession from the Rented Premises.

Section 2.

2.1 Site Plan, Entry and Cancellation
Use
Wilson shall use the Property for a storage area to be used by Wilson in connection with a construction project it has been awarded. Wilson will not, during the Agreement term, permit the Property to be used for any illegal or immoral purposes, businesses or occupations. Tenant will use the Property in conformity with applicable laws, with the terms of this Agreement, and with any other covenants, easements and restrictions presently affecting the Property.

2.2 Site Plan
Section 3.

The Landlord shall have the right to approve Wilson site plan and any improvements. Approval shall not be unreasonably withheld.

Landlord's Representations
Landlord represents the following as of the Commencement Date: see Section 4.1 3 .1 Landlord owns good record and marketable fee simple absolute title to the Rented Premises. 3 .2 Landlord has received no notice of violation of any applicable federal or state statute or regulation, requirement, rule or regulation, or of any covenant, condition, restriction or easement affecting the Rented Premises, from any governmental authority having jurisdiction over the Rented Premises or from any other person entitled to enforce the same.

Pagelof4
Ground Rent
Wilson Construction and Landlord
43 Section 4.

4.1 Section 5.

5.1 Section 6.

Term
The Term of this Agreement (the "Tenn") shall commence on the first day of August and shall continue for a period of 5 months thereafter.

The Tenn of this Agreement may be extended for an additional term upon mutual agreement of the parties. The parties acknowledge and agree that it is their intent to extend the Term for such period as required for Wilson to complete the construction project.

Rent Provisions
Rent
Wilson shall obtain Landlord's approval prior to making improvements to the propetiy

1. Wilson will call for utility locates before any excavation begins.

2. Existing Road to remain open at all times.

3. Leasor shall pay City of Mt. Shasta $650 per month in rental payments.

Compliance with Laws
Throughout the Tenn of this Agreement, Wilson shall comply with all laws, ordinances and regulations and other governmental rules, orders and determinations applicable to the Rented Premises.

Section 7. Maintenance
Throughout the Term of this Agreement, Wilson at its sole expense, shall keep and maintain the Rented Premises in good repair and condition and shall make all repairs, replacements and renewals, whether structural or non-structural, foreseen or unforeseen, ordinary or extraordinary, necessaiy to put or maintain the Improvements in that state of repair and condition. Landlord shall not be required to maintain, repair or rebuild all or any part of the Improvements. Wilson shall keep any improvements in safe and sanitaty condition as required by all applicable laws.

Section 8. Insurance
During the Term of this Agreement, Wilson shall keep in force, at its sole expense, commercial general liability insurance against claims for personal injury, death or property damage covering the Rented Premises and Improvements providing coverage with limits of liability of no less than Two Million and 00/100 Dollars ($2,000,000.00) with respect to any single occurrence and Four Million and 00/100 Dollars ($4,000,000) aggregate.

Such policy shall name Landlord as an Additional Insured. Each insurance policy carried pursuant to this Section shall be issued by an insurance company with an A. M. Best Company policyholder rating of A or better. Each insurance policy carried by Wilson Construction shall be reasonably satisfactory to Landlord in form and substance.

Section 9. Indemnity
Wilson shall defend all actions against Landlord with respect to, and shall pay, protect, indemnify and save harmless Landlord against, any and all claims, demands, liabilities, losses, damages, costs and expenses (including reasonable attorney's fees and expenses) of any nature ( collectively the "Liabilities") arising from (i) injury or death Pagc2of4
Ground Rent
Wilson Construction and Landlord
44 of any person, or damage to or loss of property, on the Propetiy, Access Area, or connected with the use, condition or occupancy of any of the foregoing or (ii) any act or omission of Wilson or its agents, contractors, licensees, subtenants or invitees, but excepting any liability arising from any breach of this Agreement by Landlord or from any act or omission of Landlord or its agents, contractors or employees.

Section 10. Surrender
At the expiration or earlier termination of this Agreement, Wilson shall yield the Rented Premises to Landlord in good order and repair. By the expiration or earlier termination of this Agreement, Wilson shall remove any trade fixtures, equipment, machinery, furniture, furnishings and other personal property from the Rented Premises and shall repair any damage which may result to the Rented Premises from such removal. In the event Wilson Construction fails to so remove those items by the expiration or earlier termination of this Agreement, any items not then removed shall, at Landlord's option, be deemed abandoned and shall be the property of Landlord.

Section 11. Assignment and Subletting
Wilson shall have no right to assign or encumber this Agreement or any interest in this Agreement, sublet the Rented Premises in whole or in part, sell, contract to sell, rent, sub-rent or pennit others to occupy the Improvements without the written consent of Landlord first being obtained as to any such actions, which consent may be withheld in Landlord's sole discretion. Consent by the Landlord shall not operate to release Wilson Construction from its obligations hereunder.

Section 12. Notices
Any notice required or permitted to be given to a patiy under these provisions of this Agreement shall be in writing and shall be deemed given if mailed by ce1iified mail or registered United States mail, postage prepaid, return receipt requested, addressed as follows:

Ifto the Landlord:
with a copy to:

If to Wilson Utility Construction:

Ken Kellogg
305 N. Mt. Shasta Blvd.

Mt. Shasta, CA 96067
Katie Horrax
Wilson Utility Construction
1190 NW 3rd A venue
P.O. Box 1190
Canby, OR 97013
Either patiy may, from time to time, change its notice address by written notice to the other party at its then current mailing address, in accordance with the provisions of this Section.

All consents of Landlord required under this Agreement shall be effective only when in writing and executed by Ken Kellogg, Director of Public Works on behalf of Landlord.

Section 13. Relationship of the Parties
Pagc3ot'4
Ground Rent
Wilson Construction and Landlord
45 Nothing contained in this Agreement shall be deemed or construed as creating the relationship of principal and agent or of pattnership or joint venture between the patties hereto, it being understood and agreed that neither the method of computing rent nor any other provisions contained herein nor any acts of the parties hereto shall be deemed to create any relationship between the parties other than that of Lessor and Tenant.

IN WITNESS WHEREOF, the patties, by their duly appointed representatives had executed this Ground Rent Agreement on the day and year first above written. t LANDLORD (City of Mt Shasta)

Page 4 ends

Ground R~nl
TENANT (Wilson Utility Construction Company)
Wilson Utility Construction Co.

Jon Oistad, Executive VP of Operations
[email protected]
W i lson ronslnlr'lirrn ,mrl I .an<IIMrl
46 CONSTRUCTION COMPANY
August 21, 2025
City of Mt. Shasta Attn:

Ken Kellogg
305 N. Mt. Shasta Blvd.

Mt. Shasta, CA 96067
RE: GROUND RENTAL AGREEMENT DATED 07/28/2025
Across from 1630 S Mt Shasta Blvd, Mt Shasta CA 96067
Amendment to increase acreage/monthly rent
Current area: $650.00
Additional space: $550.00
Total $1,200.00
Pursuant to the existing Ground Rental Agreement between The City of Mt.

Shasta ("Owner") and Wilson Utility Construction Co. ("Wilson") dated July 28, 2025, the rental amount is $650.00 per month. Wilson confirms that the rental amount is increased by a mutually agreeable amount of $550.00 for additional acreage beginning September 1, 2025. All other terms and conditions of the Ground Rental Agreement between Wilson and Owner remain unchanged.

Please confirm this is your understanding by signing below. Please return to [email protected] or send signed original to PO Box 1190, Canby, OR 97013 and. retain a copy for your records.

Signature:

Public Works Director Date: 8-21-2025
-------------------
If you have any questions, please contact Katie Horrax at [email protected] or 503-476-4803.

Business Licensing Specialist
Equal Opportunity Employer
47 City Council Agenda Item #10
Staff Report
MEETING DATE: July 27, 2026
TO: Honorable Mayor and City Council
From: Kim Fowler, Planning Director
SUBJECT: PUBLIC HEARING: First Reading of MSMC Amendment to Chapter 18.18 – Tiny Homes on Wheels
RECOMMENDATION:

Staff recommends that the City Council approve the first reading of CCO-26-XX, which modifies Chapter 18.18, Tiny Homes on Wheels, waiving reading of the text and consenting to read by title only.

BACKGROUND:

In July 2025, the City Council adopted an ordinance (CCO-25-XX) adding Chapter 18.18 to the Municipal Code regulating tiny homes on wheels. After this adoption, several members of the community approached city staff with clarification questions. Over time, city staff determined that it would be in the best interest of the city to prepare revisions to the tiny homes on wheels ordinance.

DISCUSSION:

The Planning Department invited active members of the tiny homes on wheels community to City Hall on the evening of July 6, 2026, to discuss potential revisions to the tiny homes on wheels ordinance. Subsequently, ordinance revisions were drafted with the following changes:
• Distinction between ‘moveable tiny homes’ and ‘permanent tiny homes’ including separate requirements for each type
• Incorporation of language used by Mendocino County and Trinity County (these ordinances were drafted by Dan Fitzpatrick, the president of the Tiny Homes on Wheels Association and author of several adopted ordinances)
• Clarification of details to assist prospective tiny home buyers A memorandum showing redlined changes to the ordinance is provided in Attachment A and the revised Ordinance in its entirety is provided in Attachment B, Ordinance 26-XX.

X Regular
Consent
Closed
Presentation
48 ENVIRONMENTAL REVIEW:

The revised ordinance is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) since the action fails to meet the definition of a “project” and is therefore not subject to review under CEQA. CEQA defines a “project” as an activity that (1) is a discretionary action by a governmental agency and (2) will either have a direct or reasonably foreseeable indirect impact on the environment. (Pub. Res. Code, § 21065.) Though a discretionary action, amending an ordinance does not cause a direct or reasonably foreseeable indirect physical change in the environment.

Under this exemption, no further environmental analysis is required. There is no environmental public review required for a categorical exemption. A Notice of Exemption will be filed with the Siskiyou County Clerk’s Office after City Council adoption (Attachment C).

PUBLIC NOTICE:

Per MSMC Section 18.30.040, a public hearing is required for all quasi-judicial permits and legislative actions of the City. A Notice of Public Hearing appeared in the Mt. Shasta Herald (www.mtshastanews.com) on Wednesday, July 15, 2026. A notice has also been posted to the city’s website and bulletin boards.

PUBLIC CORRESPONDENCE:

No public correspondence items have been received for this agenda item.

FISCAL IMPACT:

No direct cost to the city; the ordinance does not impose new fees or taxes on tiny homes.

CONCLUSION:

Staff recommends that the City Council introduce and adopt Ordinance No. _______ modifying MSMC Chapter 18.18, Tiny Homes on Wheels. The ordinance will become effective 30 days after adoption.

ATTACHMENTS
Attachment A Memorandum of Proposed Ordinance Revisions Attachment B Ordinance CCO-26-XX
Attachment C CEQA NOE
49 June 3, 2026
Re: MEMO TO FILE – Tiny Homes on Wheels Ordinance
By: Kim Fowler, Planning Director
Revised: July 22, 2026
Below are sections of the City’s Municipal Code that are relevant to the tiny homes on Wheels (THOW) Ordinance. Text in red are suggested changes to the THOW Ordinance:

CHAPTER 18.18 TINY HOMES ON WHEELS MOVEABLE AND PERMANENT TINY HOMES SECTION 18.18.010 PURPOSE AND INTENT
(A) The purpose and intent of this section is to implement Mt. Shasta 2019-31 Housing Element Program HO-5.1.6 creating provisions for moveable and permanent tiny homes on Wheels (THOW) to improve housing diversity and encourage development of new low-cost housing. This chapter also establishes zoning regulations to allow a new housing configurations – tiny homes on wheels, moveable tiny homes, and permanent tiny homes – as a permanent housing type pursuant to objective performance standards and all applicable provisions of the Mt. Shasta Municipal Code to protect public health, safety and welfare. This Chapter does not apply to recreational vehicles or travel trailers.

SECTION 18.18.020 DEFINITION
(A) “Tiny home on Wheels (THOW),” or “moveable tiny home,” shall be defined as an independent dwelling unit, maximum 400 gross square feet, excluding loft area space if that loft area space meets the requirements of Government Code Section 18009.3(b) (Park Trailer) and Section 18033 (Loft Areas) and maximum 14 feet in width at the maximum horizontal projection. A moveable tiny home shall not be fixed with slide-outs, tip-outs, or other forms of mechanical articulation room area extensions and cannot move under its own power.

SECTION 18.18.040 GENERAL REQUIREMENTS
(A) Tiny Home Villages. Tiny homes as tiny home villages are allowed permitted in R-2, R-3, C-1 and C-2 zoning districts with a Conditional Use Permit. Multiple tiny homes, not exceeding nine (9) units, may function as a tiny home village in compliance with the provisions of this chapter such that the total number of dwelling units on a parcel does not exceed the total number of dwelling units allowed on that parcel, per provisions of state and local regulations. Tiny home villages are subject to all applicable standards in MSMC Chapter 18.50 Objective Design Standards.
(B) Primary Residential Units. Tiny homes as primary residential units are uses allowed by right in zoning districts as conveyed by provisions for single-family-dwellings within MSMC Chapter

18.16 District Regulations in addition to the requirements of this section. (C) Accessory Dwelling Units. Tiny homes that function as an ADU shall be subject to all provisions of MSMC Chapter 18.22 as they apply to new construction ADUs in addition to the requirements in this section. A THOW moveable tiny home as an ADU shall be detached from the primary dwelling unit and shall not be located in a driveway. 51 (D) Long-Term Housing Only. Tiny homes shall not be rented for periods of less than 30 days in duration. Short-term rental (STR) are prohibited in all tiny homes. (E) Movement Restriction. Tiny homes movement on- and/or off-site shall be limited to no more than annually or as required for registration, certification or related compliance, or otherwise authorized by the Planning Director.
(F) Permitting. A tiny home shall require a building permit. (G) Licensing. A moveable tiny home shall be licensed and registered with the California Department of Motor Vehicles or California Department of Housing and Community Development. A permanent tiny home is exempt from licensing requirements. (H) Certification. A moveable tiny home shall comply with the standards set forth in California Health and Safety Code Section 18027.3 and be certified by a recognized national certification body as complying with these standards. A certification label shall be accepted by the Building Inspector and placed on the moveable tiny home to demonstrate compliance. Inspections are required every five (5) years to ensure that the moveable tiny homes continue to meet standards and evidence of such inspection shall be submitted to the Building Department. (I) Removal. Removal of a tiny home shall be reported to the Planning Department. A permanent tiny home is exempt from certification requirements.

SECTION 18.18.050 SITE STANDARDS
(A) Parcel Size. No minimum parcel size standards apply to tiny homes under the following provisions: 1) Density and Intensity: Density (units/acre) and intensity (lot coverage) shall not exceed what is allowed by the General Plan, and 2) Setbacks: Building setback standards for the underlying zones shall apply as conveyed in MSMC Title 18 Zoning. Additionally, tiny homes in tiny home villages shall be located at a fire separation distance of at least four feet from an adjacent lot line and at least ten (10) feet from any other structures on the premises. (B) Density Bonus. A tiny home village may be eligible for a density bonus or as may be modified by Government Code Section 65915.
(C) Site Design. All tiny home villages shall comply with the site layout standards of MSMC

18.50.030 II. (B) 7 Cottage Court Building Type Standards, unless otherwise approved by the Planning Director.
(D) HOA/CCRs. All occupants of a tiny home village shall be members of a homeowners’ association (HOA). The HOA shall be responsible for administering Covenants, Conditions and Restrictions (CCRs) regulating use, appearance and maintenance of the tiny home village.

HOA/CCRs shall be established prior to permit approval and reviewed annually by Planning Commission. Non-compliance with CCRs shall be enforceable pursuant to the abatement 52 provisions of MSMC including, but not limited to, Title 1 General Provisions and Title 6 Health and Sanitation.
(E) Open Space Standards. Common open space areas within tiny home villages shall be improved for shared lawn, outdoor seating and garden space. This shall not include required setbacks or patio areas, and a maximum of twenty-five percent (25%) of this area can be used to create common buildings for recreation, workspace, or storage. (F) Privacy. Units within a tiny home village shall not be designed or placed so that a window of one unit would provide a direct view into a neighboring unit resulting in a loss of privacy. (G) Access. A tiny home parking pad shall be accessible by a path of travel such that the moveable tiny home is towable onto and off the property.

1. Additional requirements for tiny home villages: All units within a tiny home village shall be located on a parcel with direct driveway access to a public right-of-way. The road and driveway shall have a minimum width of 20 feet for Fire Safe Regulations. (H) Parking Pad. Each moveable tiny home parking pad shall feature a level surface paved with two inches of asphalt concrete over five inches of Class II base rock or equivalent permeable or nonpermeable surface so as to provide a durable, dustless surface, and shall be graded and drained so as to prevent erosion and disperse surface water. (I) Anchoring. THOWs shall be securely anchored to the ground with anchors, blocking, pier pads, jacks or similar. Foundation. A permanent tiny home, or a moveable tiny home retrofitted to be a ‘permanent tiny home’ must be placed on a permanent foundation must meet building and fire safe standards. A THOW or moveable tiny home must otherwise be tied down with anchors or otherwise stabilized as designed by the manufacturer, to the satisfaction of the Building Inspector. Wheels shall be skirted or removed when parked. (J) Decking. The parking pad shall feature a THOW entry porch or decking with steps and perimeter landscaping. Accessory Structures. Structures such as porches, decks, sheds, and gazebos shall meet required setbacks and be designed to detach from a moveable tiny home. A building permit is required for uncovered porches or decks more than 30 inches in height and/or 200 square feet in area serve a door. A building permit is also required for permanently roofed structures over one hundred twenty (120) square feet.
(K) Utility Connections:

1. Water and Sewer. All THOW shall be connected by hard pipe to public water and wastewater systems where those services are available, in compliance with the latest edition of the California Plumbing Code and MSMC Title 13 Utility Enterprises – Water, Wastewater and Drainage. A tiny home shall be connected to water supply and sewage disposal facilities as approved by the Public Works Director prior to Final Inspection and, if applicable, issuance of a Certificate of Occupancy. A tiny home may use propane for heating and cooking.
53 2. Electricity. The tiny home shall be connected to a source of electricity in compliance with the latest edition of the California Electrical Code and local ordinance. If not connected to the local electric utility power source, an off-grid system may be used that is designed to provide sufficient power based on the expected loads. All off-grid systems shall include solar panels and battery storage. A tiny home shall not rely on a generator as a primary or stand-by source of electric power. All tiny homes shall have a GFI shutoff breaker.

SECTION 18.18.060 BUILDING STANDARDS FOR ALL THOW
(A) Applicable Building Codes:
(1) THOW or moveable tiny homes: THOW or moveable tiny homes shall be constructed to all applicable standards of the 2022 California Residential Code and Appendix AQ thereto California Health and Safety Code Section 18027.3, including the American National Standards Institute (ANSI) Section A119.2 and A119.5 and National Fire Protection Association (NFPA) Section 1192 featuring independent living facilities built upon a single chassis towable by a hitch mechanism and unable to move under its own power, is designed and built to look like a conventional residential structure, using conventional building materials, and is thus architecturally distinct from traditional mobile homes and recreational vehicles. It may only be transported upon the public highway with a permit issued pursuant to Vehicle Code Section 35780 (travel permit).

Additionally, the moveable tiny home shall exceed ANSI energy standards by either providing insulation of R13 for the walls and R19 for the floor and ceiling; or ensure that the stud/joist/rafter space in the walls, floors, and ceiling are completely filled with insulation.
(2) Permanent Tiny Homes: Permanent tiny homes or moveable tiny homes retrofitted to be ‘permanent tiny homes’ shall be constructed to all applicable standards of state and local building codes.
(B) Snow Loads. A tiny home shall be constructed to the satisfaction of the Building Inspector to meet the equivalent of the snow load requirements of Title 25 of the California Code of Regulations, Chapter 3, § 208.305(c)(3)(1) and to have the snow load capacity to resist the roof live load applicable to the site where the unit is placed. The applicant must provide detailed 54 evidence of the roof live load capacity certified by the manufacturer to the satisfaction of the Building Inspector. If a THOW or moveable tiny home itself does not meet the minimum required load standards, it must be placed under an approved protecting ramada subject to a building permit.
(C) Appearance. To maintain the character of residential areas, a tiny home shall be designed to look like a conventional residential structure rather than a recreational vehicle, as depicted in the graphic below. This shall be done by incorporating design features and materials typically used for houses, such as typical siding or roofing materials, pitched roofs, eaves, residential windows, etc. to the satisfaction of the Planning Director. The undercarriage, including wheels, axles, tongue, and hitch or moveable tiny homes, shall be concealed from view. The wheels shall be skirted or removed and shall sit with leveling or support jacks on a paved or compacted surface. Tiny Home Villages shall also comply all applicable standards of MSMC 18.50.030 Objective Design Standards.
(D) Design Characteristics. Shall incorporate design features and materials to suit the architectural character of vicinity residential development context, including features such as siding 4 material, roof form, roof pitch, eaves, and double-pane residential windows. (1) Egress. A moveable tiny house shall have a minimum of two means of egress, one of which shall be the main entrance and one of which shall be in each sleeping area(s).

Entrance and egress stairs, pathways, and windows shall be constructed in accordance with state standards.
(2) Skirting. When parked on its parking pad, skirting shall be installed to conceal the wheels and undercarriage. Skirting material shall have a rigid an appearance complementary to the THOW siding and be insulated to the satisfaction of the Building Inspector.
(3) Siding Materials. Exterior siding shall be natural or simulated natural products conventional to the residential home building industry. 55 (4) Insulation. Insulation of R13 for the walls and R19 for the floor and ceiling; or ensure that the stud/joist/rafter space in the walls, floors, and ceiling are completely filled with insulation.
(5) Materials. Materials for the exterior wall covering shall include material that would be allowed under the California Building Code.
(6) Windows. Windows shall be at least double pane glass and shall include exterior trim or other design features to mimic residential windows.
(7) A Moveable tiny home shall include at a minimum an efficiency kitchen. More extensive kitchen facilities may be installed but are not required. (8) Roofs. Roofs shall have a minimum 1:12 pitch for greater than fifty percent (50%) of the roof area. The roof and exterior walls shall be fixed with no slide-outs, tip-outs, or other forms of mechanically articulating extensions that expand the interior space of the THOW.
(9) Mechanical Equipment Screening. Mechanical equipment that is not incorporated within the structure shall be screened from public view and shall not be located on the roof. Except for solar panels, plumbing vents and low-profile exhaust fans, no mechanical equipment may be located on the roof. Electrical and plumbing hook ups shall similarly also be screened from public view to the satisfaction of the Building Inspector.
(10) Height. The maximum height of a THOW shall be as established by the California Department of Motor Vehicles for towing on public roads, but not to exceed 14 feet.

Movable tiny homes may exceed fourteen (14) feet in height when the movable tiny home is placed on a lot and is not being actively towed. The overall height of a moveable tiny home when it is in place and not mobile shall comply with the applicable standards for the zone in which the movable tiny home is located.
(E) Parking. A minimum of one (1) car parking space for every one (1) unit on the site. Parking location layout for tiny home villages shall comply with MSMC 18.50.030 I.(B)4. Parking and Loading, unless otherwise approved by the Planning Director. (F) Refuse Service. Refuse service consistent with MSMC Section 13.04.100 is required. Each moveable tiny home occupant is responsible for the satisfactory removal of all refuse accumulated.
(1) Additional requirements for tiny home villages: One or more areas shall be set aside for covered and enclosed trash and recycling containers. If a waste service is used, the areas must be directly accessible for garbage and recycling trucks.

SECTION 18.18.070 STANDARDS FOR TINY HOME VILLAGES
56 (A) Purpose. The purpose of these regulations is to provide clear and objective standards for tiny home villages consisting of multiple THOW up to nine units. All standards in MSMC 18.18.060 shall also apply.
(B) General Provisions.
(1) Ministerial Review. A tiny home village that meets the requirements of this section is permitted by right in R2, R3, C1 and C2 zones subject to the provisions of MSMC 18.18.030, Regulatory authority.
(2) Density and Intensity. Maximum permitted density and lot coverage shall be no greater than allowed by the General Plan or as may be modified by a density bonus. (3) Setbacks. Building setback standards for the underlying zones shall apply as conveyed in this title.
(4) Objective Design Standards. All applicable provisions of Chapter 18.50 MSMC, Objective Design Standards, shall apply in addition to the requirements of this section. (5) Types and Number of Structures. Groups of no more than nine tiny homes or tiny homes on wheels area permitted on one parcel.
(6) Density Bonus. A tiny home village may be eligible for a density bonus or as may be modified by Government Code Section 65915.
(7) HOA/CCRs. All occupants of a tiny home village shall be members of a homeowners association (HOA). The homeowners association shall be responsible for administering covenants, conditions and restrictions (CCRs) regulating use, appearance and maintenance of the tiny home village. HOA/CCRs shall be established prior to permit approval and reviewed annually by the Planning Commission. Noncompliance with CCRs shall be enforceable pursuant to the abatement provisions of this code including, but not limited to, Title 1 MSMC, General Provisions, and Title 6 MSMC, Health and Sanitation. (C) Development Standards. tiny home villages are subject to the following development standards:
(1) Electricity. All units in a tiny home village shall be connected to a source of electricity in compliance with the latest edition of the California Electrical Code and local ordinance. If not connected to the local electric utility power source, an off-grid system may be used that is designed to provide sufficient power based on the expected loads. All off-grid systems shall include solar panels and battery storage. A THOW shall not rely on a generator as a primary or stand-by source of electric power. Submetering of individual THOWs may be permitted at the discretion of the electric service provider.
(2) Water and Wastewater. All units within a tiny home village shall connect to public water and wastewater systems where those services are available. Where connection to public water or wastewater system is not available, tiny homes will require approval by the Public Works Director 57 and shall be served by on-site water and wastewater treatment that meets County Code and State requirements. Separate water meters shall be required for all THOWs. All provisions of MSMC Title 13, Utility Enterprises – Water, Wastewater and Drainage, apply. (3) Access. All units within a tiny home village shall be located on a parcel with direct driveway access to a public right-of-way. The road and driveway shall have a minimum width of 20 feet for fire safe regulations.
(4) Addresses. Each individual unit of a tiny home village shall have an assigned address by the Planning Department prior to occupancy permit issuance. (5) Parking. A minimum of one car parking space for every one unit on the site. Parking location layout shall comply with MSMC 18.50.030, Part I, subsection (B)(4), Parking. (6) Solid Waste and Recycling.
(a) One or more areas shall be set aside for covered and enclosed trash and recycling containers.

If a waste service is used, the areas must be directly accessible for garbage and recycling trucks. (b) The property owner of record is responsible for the satisfactory removal of all refuse accumulated at the tiny home village by contracting with a franchised collector in a manner consistent with State requirements and all applicable provisions of MSMC 13.04.100. (7) Open Space. Shall comply with objective design standards (cottage court building type in Chapter 18.50 MSMC, Appendix A, Part II, subsection (B)(7)(7.6), Open Space. The common open space shall be improved for shared lawn, outdoor seating and garden space. This shall not include required setbacks or patio areas, and a maximum of 25 percent of this area can be used to create common buildings for recreation, workspace, or storage. (8) Privacy. Units shall not be designed or placed so that a window of one unit would provide a direct view into a neighboring unit resulting in a loss of privacy. (9) Design Standards. THOW shall comply with the following design standards:
(a) Design Character. Shall incorporate design features and materials to suit the architectural character of vicinity residential development context, including features such as siding material, roof form, roof pitch, eaves, and residential windows.
(b) Siding Materials. Exterior siding shall be natural or simulated natural products conventional to the residential home building industry.
(c) Windows. Windows shall be at least double pane glass and shall include exterior trim or other design features to mimic residential windows.
(d) Roofs. Roofs shall have a minimum 1:12 pitch for greater than 50 percent of the roof area. The roof and exterior walls shall be fixed with no slide-outs, tip-outs, or other forms of mechanically articulating extensions that expand the interior space of the THOW. 58 (e) Mechanical Equipment Screening. Mechanical equipment that is not incorporated within the structure shall be screened from public view and shall not be located on the roof. Plumbing vents and low-profile exhaust fans may be located on the roof. Electrical and plumbing hookups shall similarly be screened from public view.
(f) General Design Standards. All tiny home villages shall comply all applicable standards of MSMC 18.50.030, Objective design standards.
(g) Site Design Standards. All tiny home villages shall comply with the site layout standards of Chapter 18.50 MSMC, Appendix A, Part II, subsection (B)(7), cottage court building type standards.
(h) Landscaping Standards. All tiny home villages shall comply with Chapter 18.50 MSMC, Objective Design Standards, landscaping requirements cited in Chapter 18.50 MSMC, Appendix A, Part I, subsection (B)(2). (Ord. CCO-25-04, 2025)
59 ORDINANCE CCO-26-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MT. SHASTA AMENDING MT. SHASTA MUNICIPAL CODE CHAPTER 18.18

TINY HOMES ON WHEELS
The City Council of the City of Mt. Shasta does hereby ordain as follows:

CHAPTER 18.18 MOVEABLE AND PERMANENT TINY HOMES
SECTION 18.18.010 PURPOSE AND INTENT
(A) The purpose and intent of this section is to implement Mt. Shasta 2019-31 Housing Element Program HO-5.1.6 creating provisions for moveable and permanent tiny homes to improve housing diversity and encourage development of new low-cost housing. This chapter also establishes zoning regulations to allow new housing configurations –moveable tiny homes, and permanent tiny homes – as a permanent housing type pursuant to objective performance standards and all applicable provisions of the Mt.

Shasta Municipal Code to protect public health, safety and welfare. This Chapter does not apply to recreational vehicles or travel trailers. (Ord. CCO-26-XX, 2026; Ord. CCO-25-XX, 2025) SECTION 18.18.020 DEFINITION
(A) “Tiny home on Wheels (THOW),” or “moveable tiny home,” shall be defined as an independent dwelling unit, maximum 400 gross square feet, excluding loft area space if that loft area space meets the requirements of Government Code Section 18009.3(b) (Park Trailer) and Section 18033 (Loft Areas) and maximum 14 feet in width at the maximum horizontal projection. A moveable tiny home shall not be fixed with slide-outs, tip-outs, or other forms of mechanical articulation room area extensions and cannot move under its own power.

B) “Permanent tiny home” means a stationary, long-term dwelling unit built on a permanent foundation (e.g. concrete slab or pier and beam) and designed to meet state and local building codes and zoning regulations for year-round occupancy. A permanent tiny home is not limited in size/square footage and is connected to approved utilities, and treated by the city as a primary or accessory dwelling unit rather than a recreational vehicle. A permanent tiny home must have a certificate of occupancy. (C) “Concealed” means kept out of sight or hidden from view. (D) “Moveable” means a transportable dwelling unit that is constructed to comply with standards applicable to recreational vehicles.
(E) “Tiny homes” include THOW, moveable tiny homes, and permanent tiny homes. (F) “Tiny home villages” consist of multiple moveable and/or permanent tiny homes consisting of up to nine (9) units per parcel
(G) “Uses allowed by right” means a land use that is permitted under the current zoning regulations of 60 a property, essentially allowing a property owner to develop their land in a specific way without needing additional use permits from the Planning Department, as it falls within the designated zoning category for that area; also known as "permitted use" or "use by right." (Ord. CCO-26-XX, 2026; Ord. CCO-25-XX, 2025)
SECTION 18.18.030 REGULATORY AUTHORITY
(A) Planning Director or designee shall serve as the review authority for individual moveable tiny homes or permanent tiny homes proposed as a primary single-family dwelling or accessory dwelling unit. (B) Planning Commission shall serve as the regulatory authority for tiny home villages. (Ord. CCO-26-XX, 2026; Ord. CCO-25-XX, 2025)
SECTION 18.18.040 GENERAL REQUIREMENTS
(A) Tiny Home Villages. Tiny homes as tiny home villages are permitted in R-2, R-3, C-1 and C-2 zoning districts with a Conditional Use Permit. Multiple tiny homes, not exceeding nine (9) units, may function as a tiny home village in compliance with the provisions of this chapter such that the total number of dwelling units on a parcel does not exceed the total number of dwelling units allowed on that parcel, per provisions of state and local regulations. Tiny home villages are subject to all applicable standards in MSMC Chapter 18.50 Objective Design Standards.
(B) Primary Residential Units. Tiny homes as primary residential units are uses allowed by right in zoning districts as conveyed by provisions for single-family-dwellings within MSMC Chapter 18.16 District Regulations in addition to the requirements of this section. (C) Accessory Dwelling Units. Tiny homes that function as an ADU shall be subject to all provisions of MSMC Chapter 18.22 as they apply to new construction ADUs in addition to the requirements in this section. A moveable tiny home as an ADU shall be detached from the primary dwelling unit and shall not be located in a driveway.
(D) Long-Term Housing Only. Tiny homes shall not be rented for periods of less than 30 days in duration.

Short-term rental (STR) are prohibited in all tiny homes. (E) Movement Restriction. Tiny homes movement on- and/or off-site shall be limited to no more than annually or as required for registration, certification or related compliance, or otherwise authorized by the Planning Director.
(F) Permitting. A tiny home shall require a building permit. (G) Licensing. A moveable tiny home shall be licensed and registered with the California Department of Motor Vehicles or California Department of Housing and Community Development. A permanent tiny home is exempt from licensing requirements.
(H) Certification. A moveable tiny home shall comply with the standards set forth in California Health and Safety Code Section 18027.3 and be certified by a recognized national certification body as 61 complying with these standards. A certification label shall be accepted by the Building Inspector and placed on the moveable tiny home to demonstrate compliance. Inspections are required every five (5) years to ensure that the moveable tiny homes continue to meet standards and evidence of such inspection shall be submitted to the Building Department. (I) Removal. Removal of a tiny home shall be reported to the Planning Department. A permanent tiny home is exempt from certification requirements. (Ord. CCO-26-XX, 2026; Ord. CCO-25-XX, 2025) SECTION 18.18.050 SITE STANDARDS
(A) Parcel Size. No minimum parcel size standards apply to tiny homes under the following provisions:
1) Density and Intensity: Density (units/acre) and intensity (lot coverage) shall not exceed what is allowed by the General Plan, and 2) Setbacks: Building setback standards for the underlying zones shall apply as conveyed in MSMC Title 18 Zoning. Additionally, tiny homes in tiny home villages shall be located at a fire separation distance of at least four feet from an adjacent lot line and at least ten (10) feet from any other structures on the premises.
(B) Density Bonus. A tiny home village may be eligible for a density bonus or as may be modified by Government Code Section 65915.
(C) Site Design. All tiny home villages shall comply with the site layout standards of MSMC 18.50.030 II. (B) 7 Cottage Court Building Type Standards, unless otherwise approved by the Planning Director. (D) HOA/CCRs. All occupants of a tiny home village shall be members of a homeowners’ association (HOA). The HOA shall be responsible for administering Covenants, Conditions and Restrictions (CCRs) regulating use, appearance and maintenance of the tiny home village. HOA/CCRs shall be established prior to permit approval and reviewed annually by Planning Commission. Non-compliance with CCRs shall be enforceable pursuant to the abatement provisions of MSMC including, but not limited to, Title 1 General Provisions and Title 6 Health and Sanitation. (E) Open Space Standards. Common open space areas within tiny home villages shall be improved for shared lawn, outdoor seating and garden space. This shall not include required setbacks or patio areas, and a maximum of twenty-five percent (25%) of this area can be used to create common buildings for recreation, workspace, or storage.
(F) Privacy. Units within a tiny home village shall not be designed or placed so that a window of one unit would provide a direct view into a neighboring unit resulting in a loss of privacy. (G) Access. A tiny home parking pad shall be accessible by a path of travel such that the moveable tiny home is towable onto and off the property.

1. Additional requirements for tiny home villages: All units within a tiny home village shall be located on a parcel with direct driveway access to a public right-of-way. The road and driveway shall have a minimum width of 20 feet for Fire Safe Regulations. (H) Parking Pad. Each moveable tiny home parking pad shall feature a level surface paved with two inches of asphalt concrete over five inches of Class II base rock or equivalent permeable or 62 nonpermeable surface so as to provide a durable, dustless surface, and shall be graded and drained so as to prevent erosion and disperse surface water.
(I) Foundation. A permanent tiny home, or a moveable tiny home retrofitted to be a ‘permanent tiny home’ must be placed on a permanent foundation must meet building and fire safe standards. A THOW or moveable tiny home must otherwise be tied down with anchors or otherwise stabilized as designed by the manufacturer, to the satisfaction of the Building Inspector. Wheels shall be skirted or removed when parked.
(J) Accessory Structures. Structures such as porches, decks, sheds, and gazebos shall meet required setbacks and be designed to detach from a moveable tiny home. A building permit is required for uncovered porches or decks more than 30 inches in height and/or serve a door. A building permit is also required for permanently roofed structures over one hundred twenty (120) square feet. (K) Utility Connections:

1. Water and Sewer. A tiny home shall be connected to water supply and sewage disposal facilities as approved by the Public Works Director prior to Final Inspection and, if applicable, issuance of a Certificate of Occupancy. A tiny home may use propane for heating and cooking.

2. Electricity. The tiny home shall be connected to a source of electricity in compliance with the latest edition of the California Electrical Code and local ordinance. If not connected to the local electric utility power source, an off-grid system may be used that is designed to provide sufficient power based on the expected loads. All off-grid systems shall include solar panels and battery storage. A tiny home shall not rely on a generator as a primary or stand-by source of electric power. All tiny homes shall have a GFI shutoff breaker.

3. Energy. Unless otherwise designed to be self-contained to provide equal electrical accommodations (e.g., fully relying on solar power and battery backup), a building permit shall be obtained for installation of any subpanel not included in the approved tiny home and shall be appropriately sized for amperage, electrical pedestal, and approved exterior outlets in the location of the tiny home. Separate electric meters may be permitted if approved by the Building Inspector and utility supplier.
(L) Landscaping Standards. All Tiny Home Villages shall comply with MSMC Chapter 18.50 Objective Design Standards landscaping requirements cited in 18.50.030 I.(B) 2. (Ord. CCO-26-XX, 2026; Ord. CCO25-XX, 2025) SECTION 18.18.060 BUILDING STANDARDS
(A) Applicable Building Codes:
(1) THOW or moveable tiny homes: THOW or moveable tiny homes shall be constructed to all applicable standards of the California Health and Safety Code Section 18027.3, including the American National Standards Institute (ANSI) Section A119.2 and A119.5 and National Fire Protection Association (NFPA) Section 1192 featuring independent living facilities built upon a 63 single chassis towable by a hitch mechanism and unable to move under its own power, is designed and built to look like a conventional residential structure, using conventional building materials, and is thus architecturally distinct from traditional mobile homes and recreational vehicles. It may only be transported upon the public highway with a permit issued pursuant to Vehicle Code Section 35780 (travel permit). Additionally, the moveable tiny home shall exceed ANSI energy standards by either providing insulation of R13 for the walls and R19 for the floor and ceiling; or ensure that the stud/joist/rafter space in the walls, floors, and ceiling are completely filled with insulation.
(2) Permanent Tiny Homes: Permanent tiny homes or moveable tiny homes retrofitted to be ‘permanent tiny homes’ shall be constructed to all applicable standards of state and local building codes.
(B) Snow Loads. A tiny home shall be constructed to the satisfaction of the Building Inspector to meet the equivalent of the snow load requirements of Title 25 of the California Code of Regulations, Chapter 3, § 208.305(c)(3)(1) and to have the snow load capacity to resist the roof live load applicable to the site where the unit is placed. The applicant must provide detailed evidence of the roof live load capacity certified by the manufacturer to the satisfaction of the Building Inspector. If a THOW or moveable tiny home itself does not meet the minimum required load standards, it must be placed under an approved protecting ramada subject to a building permit.
(C) Appearance. To maintain the character of residential areas, a tiny home shall be designed to look like a conventional residential structure rather than a recreational vehicle, as depicted in the graphic below. This shall be done by incorporating design features and materials typically used for houses, such as typical siding or roofing materials, pitched roofs, eaves, residential windows, etc. to the satisfaction of the Planning Director. The undercarriage, including wheels, axles, tongue, and hitch or moveable tiny homes, shall be concealed from view. The wheels shall be skirted or removed and shall sit with leveling or support jacks on a paved or compacted surface. Tiny Home Villages shall also comply all applicable standards of MSMC 18.50.030 Objective Design Standards. (D) Design Characteristics. Shall incorporate design features and materials to suit the architectural character of vicinity residential development context, including features such as siding 4 material, roof form, roof pitch, eaves, and double-pane residential windows. 64 (1) Egress. A moveable tiny house shall have a minimum of two means of egress, one of which shall be the main entrance and one of which shall be in each sleeping area(s). Entrance and egress stairs, pathways, and windows shall be constructed in accordance with state standards. (2) Skirting. When parked on its parking pad, skirting shall be installed to conceal the wheels and undercarriage. Skirting material shall have an appearance complementary to the THOW siding and be insulated to the satisfaction of the Building Inspector. (3) Siding Materials. Exterior siding shall be natural or simulated natural products conventional to the residential home building industry.
(4) Insulation. Insulation of R13 for the walls and R19 for the floor and ceiling; or ensure that the stud/joist/rafter space in the walls, floors, and ceiling are completely filled with insulation. (5) Materials. Materials for the exterior wall covering shall include material that would be allowed under the California Building Code.
(6) Windows. Windows shall be at least double pane glass and shall include exterior trim or other design features to mimic residential windows.
(7) A Moveable tiny home shall include at a minimum an efficiency kitchen. More extensive kitchen facilities may be installed but are not required. (8) Roofs. Roofs shall have a minimum 1:12 pitch for greater than fifty percent (50%) of the roof area. The roof and exterior walls shall be fixed with no slide-outs, tip-outs, or other forms of mechanically articulating extensions that expand the interior space of the THOW. (9) Mechanical Equipment Screening. Mechanical equipment that is not incorporated within the structure shall be screened from public view and shall not be located on the roof. Except for solar panels, plumbing vents and low-profile exhaust fans, no mechanical equipment may be located on the roof. Electrical and plumbing hook ups shall also be screened from public view to the satisfaction of the Building Inspector.
(10) Height. The maximum height of a THOW shall be as established by the California Department of Motor Vehicles for towing on public roads, but not to exceed 14 feet. Movable tiny homes may exceed fourteen (14) feet in height when the movable tiny home is placed on a lot and is not being actively towed. The overall height of a moveable tiny home when it is in place and not mobile shall comply with the applicable standards for the zone in which the movable tiny home is located.
(E) Parking. A minimum of one (1) car parking space for every one (1) unit on the site. Parking location layout for tiny home villages shall comply with MSMC 18.50.030 I.(B)4. Parking and Loading, unless otherwise approved by the Planning Director.
(F) Refuse Service. Refuse service consistent with MSMC Section 13.04.100 is required. Each moveable tiny home occupant is responsible for the satisfactory removal of all refuse accumulated. 65 (1) Additional requirements for tiny home villages: One or more areas shall be set aside for covered and enclosed trash and recycling containers. If a waste service is used, the areas must be directly accessible for garbage and recycling trucks. (Ord. CCO-26-XX, 2026; Ord. CCO-25-XX, 2025)
The foregoing Ordinance was adopted at the regular meeting of the City Council of the City of Mt. Shasta held on this __ day of __, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

CERTIFICATION
I HEREBY CERTIFY that the foregoing Ordinance CCO-26-XX was introduced, by title only, at a regular meeting of the Mt. Shasta City Council on the 27th day of July, 2026, and was adopted at a regular meeting of said Council on the ___ day of ___, 2026.
_______________________________
Rachel Agron, Deputy City Clerk

66 Statutory Exemptions. State code number:

_______________________________________________
Print Form
Notice of Exemption Appendix E
To: Office of Planning and Research From: (Public Agency): ____________________________ P.O. Box 3044, Room 113 _______________________________________________ Sacramento, CA 95812-3044 County Clerk
(Address)
___________________________
___________________________
County of: __________________
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:

Project Location - City: ______________________ Project Location - County:

Description of Nature, Purpose and Beneficiaries of Project:
_____________________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Reasons why project is exempt:

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date:

Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. _______________
Categorical Exemption. State type and section number: ____________________________________ ______________________________________________
______________ Title: _______________________
Revised 2011
67 CITY COUNCIL AGENDA ITEM #11
MEETING DATE: July 27, 2026
TO: Mayor and City Council
FROM: Robert Gibson, Chief of Police
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF MT. SHASTA AMMENDING 3.12.110 (ACTIONS TO COLLECT) OF MOUNT SHASTA MUNICIPAL CODE CHAPTER 3.12 (TRANSIENT

OCCUPANCY TAX)
RECOMMENDATION:

Staff respectfully request the City Council approve the amendment to ordinance chapter 3.12 (transient occupancy tax), specifically section 3.12.110 (Actions to Collect) in the Mt. Shasta Municipal Code.

BACKGROUND & SUMMARY:

During a recent investigation into a business withholding or failing to remit Temporary Occupancy Tax (TOT), staff found that the ability of the City to collect on the debt owed was limited due to there being no mechanism to place a lien on the owners/operators of a business for said debt. The proposed changes to the language in the Mt. Shasta Municipal Code section

3.12.110 would allow for the City to have a mechanism to recover cost from delinquent operators and recover cost owed to the City.

ATTACHMENTS:

Amendment to 3.12.110 Mt. Shasta Municipal Code
X Regular Session
Special Session
Emergency Session
Closed Session
68 Chapter 3.12

TRANSIENT OCCUPANCY TAX
Sections:

3.12.010 Definitions.

3.12.020 Tax imposed.

3.12.030 Operator’s duties.

3.12.040 Registration.

3.12.050 Reporting and remitting.

3.12.060 Penalties and interest.

3.12.070 Failure to collect and report tax – Determination of tax by Tax Administrator.

3.12.080 Appeal.

3.12.090 Records.

3.12.100 Refunds.

3.12.110 Actions to collect.

3.12.120 Violations.

3.12.300 Obligation of purchaser of covered business.

3.12.310 Issuance of receipt or certificate.

3.12.320 Estimate of amount to withhold.

3.12.330 Deposit of amount withheld.

3.12.340 Successor’s failure to withhold.

3.12.350 Effect of certificate on liability of seller.

3.12.400 Joint and several liability of partners.

3.12.010 Definitions.

Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter.
69 (A) “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. (B) “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof; and shall further include any space, lot, area, or site in any trailer court, camp, park, or lot where a trailer, recreational vehicle, mobile home, motor home, or other similar conveyance is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes.
(C) “Occupancy” means the use or possession, or the right to the use or possession, of any room or rooms, or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. (D) “Transient” means any person who exercises occupancy or is entitled to occupy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this chapter may be considered. (E) “Rent” means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.
(F) “Operator” means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgage in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal.

Compliance with the provisions of this chapter by either the principal or the managing agent, shall, however, be considered to be compliance by both. (G) “Tax Administrator” means the City Clerk. (Ord. CCO-11-05 § 6, 2011; Ord. 440, 1988)

3.12.020 Tax imposed.
70 For the privilege of occupancy in any hotel, each transient shall be subject to and shall pay a tax in the amount of 12 percent of the rent charged by the operator. Such tax shall constitute a debt owed by the transient to the City, which debt shall be extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax be paid directly to the Tax Administrator. (Ord. CCO-23-08 § 1, 2023; Ord. CCO-95-08, 1995; Ord. CCO-93-05, 1993; Ord. 440, 1988)

3.12.030 Operator’s duties.

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided. (Ord. 440, 1988)

3.12.040 Registration.

Within 30 days after the effective date of the ordinance codified in this chapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register said hotel with the Tax Administrator and obtain from him a “Transient Occupancy Registration Certificate” to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following:
(A) The name of the operator;
(B) The address of the hotel;
(C) The date upon which the certificate was issued;
(D) “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly 71 complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit.” (Ord. 440, 1988)

3.12.050 Reporting and remitting.

Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Tax Administrator, make a return to the Tax Administrator on forms provided by him/her of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if he/she deems it necessary in order to ensure collection of the tax and he/she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment thereof is made to the Tax Administrator. An extension of time, not to exceed 30 days, to file a return and to pay the tax, shall be granted by the Tax Administrator upon receipt of a written application showing good cause. (Ord. CCO-11-05 § 7, 2011; Ord.

CCO-96-07 § 25, 1996; Ord. 440, 1988)

3.12.060 Penalties and interest.
(A) Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10 percent of the amount of the tax in addition to the amount of the tax.
(B) Continued Delinquency. Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10 percent of the amount of the tax in addition to the amount of the tax and the 10 percent penalty first imposed. (C) Fraud. If the Tax Administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections (A) and (B) of this section. (D) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of one-half of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
72 (E) Penalties Merged with Tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. (Ord. 440, 1988)

3.12.070 Failure to collect and report tax – Determination of tax by Tax Administrator.

If any operator shall fail or refuse to collect said tax and to make, within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, the Tax Administrator shall proceed in such manner as he/she may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the Tax Administrator shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he/she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the Tax Administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. Such operator may, within 10 days after the serving or mailing of such notice, make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall become final and conclusive and immediately due and payable. If such application is made, the Tax Administrator shall give not less than five days’ written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in MSMC 3.12.080. (Ord. 440, 1988)

3.12.080 Appeal.

Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the Council by filing a notice of appeal with the City Clerk within 15 days of the serving or mailing of the determination of tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his/her last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. (Ord. 440, 1988)

3.12.090 Records.
73 It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the City, which records the Tax Administrator shall have the right to inspect at all reasonable times. (Ord. 440, 1988)

3.12.100 Refunds.
(A) Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City under this chapter, it may be refunded as provided in subsections (B) and (C) of this section provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded is filed with the Tax Administrator within three years of the date of payment. The claim shall be on forms furnished by the Tax Administrator. (B) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax Administrator that the person from whom the tax has been collected was not a transient; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.
(C) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the City by filing a claim in the manner provided in subsection (A) of this section, but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax.
(D) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. (Ord. 440, 1988)

3.12.110 Actions to collect.

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the City. Any such tax collected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City of Mt. Shasta for the recovery of such amount. 74 A. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

B. Recording Certificate of Lien. If any amount required to be paid to the city under this chapter is not paid when due, the tax administrator may, within three years after the amount is due, file for recording in the office of the Siskiyou County recorder a certificate of lien specifying the amount of tax, penalties and interest due, and the name and address of the operator as it appears on the records of the tax administrator. The lien shall also specify that the tax administrator has complied with all provisions of this chapter with respect to the computation and levy of the tax required to be paid. From the time of filing the certificate for record, the amount required to be paid, together with penalties and interest thereon, constitutes a lien upon all real property in the city owned by the operator or subsequently acquired by the operator before the lien expires. The lien has the force, effect, and priority of a judgment lien and shall continue for ten years from the recording of the certificate unless sooner released or otherwise discharged. Within ten years from the date of the recording of the certificate, the tax administrator may extend the lien by filing for record a new certificate in the office of the Siskiyou County recorder and, from the time of the filing, the lien as obtained under the original certificate shall be extended for an additional ten years unless sooner released or otherwise discharged.

C. Warrant for Collection of Tax. At any time within three years after any operator is delinquent in the payment of any amount herein required to be paid or within three years after the last recording of a certificate of lien under subsection B of this section, the tax administrator may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the city under this chapter. The warrant shall be directed to Office of the Siskiyou County Sheriff and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy and sale pursuant to a writ of execution. The tax administrator may pay or advance to the sheriff such fees, commissions, and expenses for services as are provided by law for similar services pursuant to a writ of execution.

D. Seizure and Sale. At any time within three years after recording a lien against any operator, if the lien is not discharged and released in full, the tax administrator 75 may forthwith seize any asset or property, real or personal (including bank account), of the operator and sell at public auction the asset or property, or a sufficient part of it to pay the amount due together with any penalties and interest imposed for the delinquency and any cost incurred on account of the seizure and sale. Assets or property of the operator subject to seizure and sale subject to this chapter shall not include any assets or property which is exempt from execution under the provisions of the California Code of Civil Procedure. A seizure and sale under this section shall be conducted in the same manner as a seizure and sale under the provisions of California Revenue and Taxation Code Section 2951 et seq., as now enacted and as may hereafter be amended, to the extent that such provisions do not conflict with this section.

E. The remedies provided under this section are cumulative and not exclusive, , and are in addition to, and not in lieu of, the code enforcement remedies and penalties available under Chapter 1.03 MSMC.

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

Section 3. Effective Date. This Ordinance shall take effect thirty (30) days after the date of its adoption.
(Ord. 440, 1988)

3.12.120 Violations.
(A) Violation of this chapter shall constitute an infraction, and shall follow code enforcement procedures and penalties set forth in Chapter 1.03 MSMC. (B) Nothing herein shall prevent a person who violates this chapter from, in the alternative, being charged with and convicted of a misdemeanor or felony under any other applicable provision of the California Penal Code or other local, County, State, or Federal law or regulation.
(C) Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or furnish a supplemental return or other data 76 required by the Tax Administrator, or who renders a false or fraudulent return or claim, shall be deemed to have violated this chapter.
(D) Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made shall be deemed to have violated this chapter. (Ord. CCO-20-04 § 3, 2020; Ord. CCO-95-04, 1995; Ord. 440, 1988)

3.12.300 Obligation of purchaser of covered business.

If an operator who is liable for any tax, penalties, or interest under this chapter sells his or her business, his or her successor shall withhold, or cause the escrow holder to withhold, a sufficient portion of the purchase price to equal the amount of such tax, penalties, and interest until the selling operator produces a receipt from the City Clerk or Finance Officer showing that the said tax, penalty, and interest has been paid through the date of the transfer of the subject business, or a Tax Clearance Certificate from said officer stating that no tax, penalties, or interest are due as of the said transfer date. (Ord. CCO-95-06, 1995)

3.12.310 Issuance of receipt or certificate.

Within 10 days after receiving a written request from the successor for a Tax Clearance Certificate stating that no tax, penalties, or interest is due, the City Finance Officer shall either mail to the successor the requested Certificate or issue a withholding estimate pursuant to MSMC 3.12.320. (Ord. CCO-95-06, 1995)

3.12.320 Estimate of amount to withhold.

The City Finance Officer shall, within 10 days after receipt of a written request therefor, mail to the successor a statement of the amount which the City will consider to be sufficient to be withheld under MSMC 3.12.300, and if the successor withholds, or causes the escrow holder to withhold, that amount or more, the successor shall not be liable if the amount proves to be insufficient. The minimum amount to be withheld shall be determined by the City by multiplying by 1.5 the estimated amount of T.O.T. which is likely to have accrued, based on the taxpayer’s previous tax returns, since the tax was last paid, plus known interest and penalties; provided, however, that the City may require a larger amount to be withheld if the City Finance Officer deems it to be appropriate under the circumstances, based on intervening changes in the operator’s business, veracity and completeness of previous tax returns, or other relevant factors. If the successor fails to obtain such an estimate from the City, and withholds, or causes to be withheld, an insufficient amount, the successor shall be liable for the difference between the amount withheld and the amount actually due from the operator. In no event shall the escrow holder be liable for the subject taxes, penalties, or interest. (Ord. CCO-95-06, 1995) 77 3.12.330 Deposit of amount withheld.

If the seller does not present his or her successor with a receipt or Tax Clearance Certificate within 30 days after such successor commences to conduct business, the successor shall deposit, or cause the escrow holder to deposit, the withheld amount with the City pending settlement of the amount of the taxes, penalties, and interest due of the seller. (Ord. CCO-95-06, 1995)

3.12.340 Successor’s failure to withhold.

If the successor fails to withhold, or cause the escrow holder to withhold, a portion of the purchase price as required, it shall be liable to the City for the payment of the amount of the minimum amount to be withheld, according to the formula set forth in MSMC 3.12.320; provided, however, that if the actual taxes, penalties, and interest due from the operator, as based on complete and confirmed tax returns, are determined by the City Finance Officer to be less than the amount required to have been withheld, the successor shall be liable for that lesser amount. (Ord. CCO-95-06, 1995)

3.12.350 Effect of certificate on liability of seller.

The issuance by the City of a Tax Clearance Certificate shall not release the owners or operators of a business which has incurred unpaid transient occupancy tax liability. (Ord.

CCO-95-06, 1995)

3.12.400 Joint and several liability of partners.

The tax due under this chapter shall be a joint and several liability of all general partners of any partnership which is liable for the said tax, even if that general partner is not individually involved in the operation of the subject business. (Ord. CCO-95-06, 1995) 78 Ordinance CCO-26-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MT. SHASTA AMENDING SECTION 3.12.110 (ACTIONS TO COLLECT) OF MOUNT SHASTA MUNICIPAL CODE CHAPTER 3.12 (TRANSIENT OCCUPANCY TAX)
WHEREAS, pursuant to Chapter XI, Section 7, of the California Constitution, the City of Mt Shasta (“City”) may make and enforce within its limits all local, police, sanitary, and other ordinance, and regulations not in conflict with general laws; and
WHEREAS, the City Council of the City of Mount Shasta may make amendments to the Mount Shasta Municipal Code section 3.12.110 (Actions to Collect), and WHEREAS, the City Council of the City of Mount Shasta finds that there is a need for the city to be able to reclaim monies owed by business’s which collect temporary occupancy tax (TOT) and have failed to remit said tax to the city as required by the Mt. Shasta Municipal Code; and WHEREAS, the City Council of the City of Mt. Shasta has determined that following changes to the Mount Shasta Municipal Code Section 3.12.110;
Section 1. Amend Mt. Shasta Municipal Code Section 3.12.110 (Actions to Collect) is hereby amended in its entirety to read as follows:

3.12.110 Actions to Collect.

A. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

C. Warrant for Collection of Tax. At any time within three years after any operator is delinquent in the payment of any amount herein required to be paid or within three years after the last recording of a certificate of lien under subsection B of this section, the tax administrator may issue a warrant for 79 the enforcement of any liens and for the collection of any amount required to be paid to the city under this chapter. The warrant shall be directed to Office of the Siskiyou County Sheriff and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy and sale pursuant to a writ of execution. The tax administrator may pay or advance to the sheriff such fees, commissions, and expenses for services as are provided by law for similar services pursuant to a writ of execution.

D. Seizure and Sale. At any time within three years after recording a lien against any operator, if the lien is not discharged and released in full, the tax administrator may forthwith seize any asset or property, real or personal (including bank account), of the operator and sell at public auction the asset or property, or a sufficient part of it to pay the amount due together with any penalties and interest imposed for the delinquency and any cost incurred on account of the seizure and sale. Assets or property of the operator subject to seizure and sale subject to this chapter shall not include any assets or property which is exempt from execution under the provisions of the California Code of Civil Procedure. A seizure and sale under this section shall be conducted in the same manner as a seizure and sale under the provisions of California Revenue and Taxation Code Section 2951 et seq., as now enacted and as may hereafter be amended, to the extent that such provisions do not conflict with this section.

Section 3. Effective Date. This Ordinance shall take effect thirty (30) days after the date of its adoption.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Mt. Shasta hereby ordains:

That the above changes be made to the Mount Shasta Municipal Code:

The foregoing Resolution was approved this the ___ day of 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:
80 ATTEST: CITY OF MT. SHASTA
______________________________ ______________________________ Rachel Agron, Deputy City Clerk Casey Glaubman, Mayor
FORM APPROVED:
_______________________________
Andrew L. Jared, City Attorney

CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of an ordinance duly and regularly adopted at a meeting of the City Council of the City of Mt. Shasta held on ______________________________
Rachel Agron, Deputy City Clerk
81

Mount Shasta City CouncilJuly 27, 2026

Mount Shasta City Council
July 27, 2026