Agenda packet — Shasta Lake City Council, February 15, 2022

CITY COUNCIL

MEETING AGENDA
City Council Chambers
4488 Red Bluff St
Shasta Lake, CA 96019
Tuesday, February 15, 2022 at 6:00 PM

OTHER WAYS TO PARTICIPATE IN THE MEETING
• Watch a livestream of the meeting online or view the recording any time after the meeting concludes at the following: cityofshastalake.org/meetings
• Submit public comment by mail or email addressed to City Clerk, City of Shasta Lake, PO Box 777, Shasta Lake, CA 96019 or [email protected]. Mailed and emailed comments must be received one day prior to the meeting to be included.

Facial coverings should be worn in compliance with State recommendations. Please maintain a distance of 6 ft. from others not from your household. Thank you for helping us to protect the health of our Council, staff, and members of the public. 5:30 PM CLOSED SESSION – PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATORS.

Property: (3570 Iron Court) APNS: 064-440-029, 064-440-008, 064-440.009. Agency Negotiators: City Manager Jessaca Lugo, City Attorney John Kenny, Electric Utility Director James Takehara. Negotiating parties: City of Shasta Lake and Brian Hicks. Under negotiation: Price and Terms.

The Brown Act prohibits the Council from taking action on any item not placed on the Agenda in most cases.

The Brown Act requires any non-confidential documents or writings distributed to a majority of the City Council less than 72 hours before a regular meeting to be made available to members of the public at the same time they are distributed.

Should supplemental materials to be evaluated in the decision making process be made available to the members of the legislative body at the meeting, seven (7) copies must be provided to the City Clerk who will distribute them.

Councilmembers are encouraged to contact the City Manager prior to the meeting with questions or concerns regarding any item on the Agenda so that their questions and concerns can be adequately addressed at the meeting.

Agenda packets are available for public review at City Hall, 4477 Main Street, Shasta Lake, CA during normal business hours of 7:00 a.m. to 4:00 p.m. weekdays, excluding holidays.

In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call (530) 275-7407. Notification 48 hours prior to the meeting is requested to enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).

1.0 6:00 PM CALL TO ORDER – REGULAR MEETING
Call to order (please place electronic devices on silent) Statement for the record of Council members present
Pledge of Allegiance and Invocation

2.0 AWARDS/RECOGNITIONS

3.0 COMMUNICATIONS

3.1 Public Comment Period:

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 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.

Speaker forms are available from the City Clerk, 4477 Main Street, Shasta Lake, on the City’s website, or at the back of the meeting hall. If you have documents to present to members of Council, please provide a minimum of seven copies.

3.2 Presentations:

3.3 Commission/Committee Reports/Outside Agency Reports:

Question and answer session regarding Roger Moses’ Fire Prevention Officer 2021 Annual Report.

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4.0 CONSENT AGENDA
NOTICE: The items listed under the Consent Agenda are considered routine business and will be voted on together by one motion unless a Council Member requests a specific item to be removed and discussed separately.

4.1 Acceptance of the regular meeting minutes of February 1, 2022. Page 2

4.2 Resolution to approve a supplemental budget appropriation in the amount of $833,000.00, award the Flanagan Pole Replacements 115kV Transmission Project to Cal Electro, Inc. of Redding in the amount of $1,283,750.00 and approve a total of $1,483,000.00 to allow for a contract contingency and design consultant.

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4.3 Resolution authorizing the Purchase and sale of energy and the environmental attributes of energy for future periods.

Page 9 ends

4.4 Resolution to accept the Quarterly Cash and Investment Report for the period ending Jun 30, 2021.

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4.5 Resolution to accept the Quarterly Cash and Investment Report for the period ending September 30, 2021.

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4.6 Resolution to accept the Quarterly Cash and Investment Report for the period ending December 31, 2021.

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4.7 Resolution authorizing the City Manager to execute CAL FIRE California Climate Investment California Northern Region Grant documents and any subsequent

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agreements.

4.8 Resolution authorizing the City Manager to execute CAL FIRE Climate Investment Grant documents and any subsequent agreements.

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4.9 Resolution authorizing submittal of application for all CalRecycle Grants for which City of Shasta Lake is eligible.

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4.10 Resolution for the exception to the 180-day wait period, Gov. Code Sections 7522.56 & 21224.

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5.0 PUBLIC HEARINGS

5.1 Public Hearing and possible action to conduct the first reading of an Ordinance approving Municipal Code Amendments (Z22-01) to Title 17-Zoning and Title 16- Subdivisions.

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6.0 REGULAR AGENDA

6.1 Discussion and possible action on a Resolution authorizing the submittal of a Notice of Intent to comply with SB1383 – Mandatory Organics Recycling Regulations.

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6.2 Discussion and possible action on a Resolution approving and adopting the fiscal year 2021-22 Mid-Year Budget.

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6.3 Discussion and possible action on a Resolution authorizing the City Manager to execute a contract with the McConnell Foundation to purchase up to 300 acre feet of water for $250 per acre foot.

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7.0 COMMUNICATIONS

7.1 Staff Comments/Reports

7.2 City Council Comments/Reports
This is the time set aside for Council Members, who may so desire, to give brief comments or reports concerning City matters. The City Council may not enter into discussion on matters reported. Statements made by individual Council Members should not be interpreted as a statement of the City Council. The City Council only takes action by majority vote. • Brief reports by members of the Council regarding correspondence, events and/or meetings attended, and upcoming meetings/events.
• Suggestions/motions for future agenda items.
• In compliance with Assembly Bill 1234, Council will report on attendance at conferences/meetings/events where expenses are reimbursed by the City.

8.0 ADJOURNMENT
Meetings are broadcast on the Wednesday following the meeting at 6 pm and the following Friday at 2 pm on Charter Channel 181.

Videos of Meetings are also available on-line through the City website www.cityofshastalake.org 2021 began with dry conditions persisting in California. We had plans in place to conduct roadside burning, along major roadways within City limits, and around the water treatment plant. Due to a very short burn window, those plans were shelved. Early June of 2021 SLFPD assisted the US Forest Service with a wildland fire investigation class. July through most of August we assisted Cal Fire Shasta County with County wide coverage due to major drawl down from major fires burning throughout the State.

 Prevention hours:
15-20 hrs. per week, with remaining time to other duties as assigned.

January-December 2021, 56 new abatement notices sent out.

I continue to meet with several land owners regarding continued work on their properties.
 Youth Programs:

Youth Firesetter Prevention & Intervention (YFPI).

This year SLFPD is happy to report we sent no juveniles into the youth program  Business Inspections:

Business Inspection forms have been updated to the new California Fire Codes.

Crews have been out conducting life and safety inspections on businesses.  Fires 2021:
81 total fires January 1st – December 31st 2021

1.875 total acres burnt within city limits
1 arson arrests
26 - vegetation fires
23 - structure fires
6 - trash (rubbish)
6 - vehicle fires
20 - illegal burn piles

Respectfully Submitted,
Roger Moses
Roger J. Moses
Battalion Chief
1 MEETING OF THE CITY OF SHASTA LAKE CITY COUNCIL

MINUTES OF THE REGULAR MEETING
HELD TUESDAY, JANUARY 18, 2022 AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA

5:30 PM 5:30 PM CLOSED SESSION – PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATORS. Property:
(3570 Iron Court) APNS: 064-440-029, 064-440-008, 064-440.009. Agency Negotiators:

City Manager Jessaca Lugo, City Attorney John Kenny, Electric Utility Director James Takehara. Negotiating parties: City of Shasta Lake and Brian Hicks. Under negotiation:

Price and Terms.

1.0 6:00 PM CALL TO ORDER - Regular Session
Mayor Kern convened the regular meeting at 6:06 PM
Council Members present: Doyle, Kern, Morgan, Powell, Watkins Council Members absent: None
Mayor Kern announced that during closed session the Agency Negotiators were given direction to proceed with negotiations.

2.0 AWARDS AND RECOGNITIONS

3.0 COMMUNICATIONS

3.1 Public Comment:

Jim Mark of Shasta Lake spoke about the Oath of Office and complaint against Shasta County Sheriff.

3.2 Presentations:

3.3 Commission/Committee reports:

Outside Agency Funding Reports:

Shasta Damboree Association
Shasta Lake Lion’s Club
Shasta Lake Garden Project

4.0 CONSENT AGENDA

4.1 Acceptance of the regular meeting minutes of January 18, 2022.

4.2 Resolution CC-2022-08 accepting the third annual Wildfire Mitigation Plan (Version 1.2).

4.3 Information Item
Checks, E-payments, and Wires
11/24/2021 $208,472.35
12/09/2021 $1,119,611.03
Payrolls
11/19/2021 $177,575.13
12/03/2021 $179,521.84
2 12/17/2021 $177,934.80
12/31/2021 $180,426.55
01/14/2022 $171,005.42

4.4 Resolution CC-2022- accepting the 2022 audit of the City Sewer Management Plan.

4.5 Resolutions reappointing Darlene Brown CC-2022-10, Tena Eisenbiesz, (CC-2022-11) and Randy Trotter (CC-2022-12) to the Planning Commission for a four-year term ending February 2026 Motion/Vote:

By motion made/seconded (Morgan/Doyle), and carried, the consent items were approved.

5.0 PUBLIC HEARINGS None

6.0 REGULAR AGENDA

6.1 Discussion and possible action on a Resolutions appointing Rose Smith (CC-2022-14) and Jennifer Greenwood (CC-2022-15) to the Parks and Recreation Advisory Commission for a one-year term ending December 2022.

Motion/Vote:

By motion made/seconded (Morgan/Doyle), and carried, appointments were made.

6.2 Discussion and possible action to approve the Water Management Plan update.

Motion/Vote:

By motion made/seconded (Watkins/Morgan), and carried, Resolution CC-2022-13 was approved.

6.3 Discussion and possible action for execution of a Memorandum of Understanding between the County of Shasta and the City of Shasta Lake to receive funding in the State of California Regional Early Action Planning Grant Program (REAP) Standard Agreement No. 21-REAP-16782 and suballocate funding to the City of Shasta Lake for the purpose of completing a Summit City Wastewater Feasibility Study.

Public Comments regarding this matter were received by Jim Mark, Steve Morgan, and Darlene Brown.

Motion/Vote:

By motion made/seconded (Morgan/Watkins), and carried, Resolution CC-2022-16 was approved.

6.4 Discussion and possible action to approve the closeout of CDBG CV Emergency Assistance Program.

Motion/Vote:

By motion made/seconded (Morgan/Powell), and carried, Resolution CC-2022-17 was approved.

7.0 COMMUNICATIONS

7.1 Staff Comments.

7.2 Councilmembers reported on recent events and meetings they attended.

8.0 ADJOURNMENT
With no further business, Mayor Kern adjourned the meeting at 7:30 pm.

_____________________________
TONI M. COATES, CMC, City Clerk
3 Report and Recommendations 4.2 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting
TO: Mayor and City Council Members
FROM: Trent Drenon, Assistant Electric Utility Director

DATE: February 15, 2022
SUBJECT: Contract Award
Flanagan Pole Replacements - 115kV Transmission Project FILE NO.: E-090-522-630
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution that awards the “Flanagan Pole Replacements – 115kV Transmission project” to Cal Electro, Inc. of Redding, CA, with a not to exceed cost of $1,483,000.00, including contract contingency and design consultant.

BACKGROUND:

The City electric utility is served by three 115 kilovolt (kV) high voltage transmission lines. The City primarily serves end use electric customers from the two lines that originate from the Flanagan Substation, which the City maintenance staff routinely inspects both visually and with a resistograph drill system to detect internal defects in wood poles. In 2019, the inspector found 70% of the structures in the project area have components that have been marked for attention/replacement and results have been saved in the City field inspection software. In 2020, staff made emergency, temporary repairs to failing crossarms to prevent line failure. The purpose of this “Flanagan Pole Replacements – 115kV Transmission project” is to replace all known failing poles and crossarms on the City’s primary transmission lines and to prevent the need for additional emergency, temporary repairs on the remaining structures.

The proposed project location has experienced electrical faults in recent history due to snow unloading and damaging the crossarms causing the circuit to relay out of service. Temporary repairs and bracing have been made. These poles in this project area are the most difficult to access in the City grid due to steep terrain, and the City does not have the specialized track rig equipment to make permanent repairs on its own. This area also was included in the CPUC Tier 2 Fire Threat map and experienced fire damage to adjacent structures in the past (e.g., Flanagan Fire in 2013). Due to the desire for resiliency and current industry practices, weathering steel poles have been designed for the replacement structures. Steel crossarms will bring additional strength and should result in less required maintenance. The completed project will result in 6,000ft of rehabilitated transmission lines that should result in better reliability for City customers. The consulting designer chose to leverage the prior design by keeping the general design 4 shape of the other city transmission lines but incorporated the stronger steel material. The unique attributes of direct imbed steel poles allow the poles to be moved on-site in smaller pieces and uses native and engineered backfill, which facilitates easier access and reduces the importation of fill materials.

Alternatively, fewer but larger shared custom steel structures could have been selected but would have required hard to deliver poles and concrete for the foundations—both a challenge given the steep terrain.

Maintaining the two separate lines in the shared corridor also results in operational flexibility and matches the adjacent line and alignment.

Contractor’s work tasks on this project include the following items:
• Removal and disposal of the existing 10 H-frame / Deadend wooden structures (Flanagan-Knauf Structures 7 to 11 and Flanagan-Central Valley Structures 7 to 11) • Purchase all materials
• Installation of 10 H-frame steel / 3-Pole Deadend replacement structures (22 Poles Total) • Transfer all lines, including fiber optic cables and static lines (No changes or upgrades of line conductor are required or included) • Installation of Water Bars or Rolling Dips on path to improve future access The City held a Prebid meeting on January 11th to allow interested bidders to ask questions and tour the project site. One bid for the project was ultimately received on January 27, 2022. This bid was deemed to be responsive, the bidder qualified, noting that the bidder has experience working on all three of the City’s substations in the past.

FISCAL IMPACTS:

The lowest responsive, responsible bidder was Cal Electro Inc. of Redding, CA with a bid of $1,283,750.00.

This project includes a separate contract with ECI, Inc for design consulting in the amount of $68,499.00.

In addition to the construction contract funds and engineering design costs, contingency funds need to be allocated, creating a total budget of $1,483,000.00. Construction of this project will require an electric utility budget supplement of $833,000.00 to the $650,000.00 currently budgeted in the Electric Utility capital project fund (520-340-6182), which was based on an engineering estimate prepared over 2-years ago. The supplemental budget appropriations will be funded from the electric reserves.

ATTACHMENTS:

Project Location Map, Resolution, Bid Summary
DISTRIBUTION:

City Council
5 PROJECT LOCTION MAP:

Notes
The project location is illustrated on the map above. There are two 115kV transmission circuits within scope with a total of 10 wooden structures to be replaced, as indicated by small dots within the project area. 6 RESOLUTION CC 22-xx
________________________________________________________________________________

A RESOLUTION OF THE CITY OF SHASTA LAKE CITY COUNCIL TO APPROVE A SUPPLEMENTAL BUDGET AUTHORIZATION IN THE AMOUNT OF $833,000.00, AWARD THE FLANAGAN POLE REPLACEMENTS 115KV TRANSMISSION PROJECT TO CAL ELECTRO, INC.

OF REDDING, CA IN THE AMOUNT OF $1,283,750.00, AND APPROVE A TOTAL OF $1,483,000.00 TO ALLOW FOR A CONTRACT CONTINGENCY AND DESIGN CONSULTANT.

WHEREAS, The City advertised for competitive bids (Bid # 2021-01) to construct the above project starting on December 21, 2021; and
WHEREAS, The City opened one competitive bid on January 27, 2022; and WHEREAS, The lowest responsive, responsible bidder was Cal Electro, Inc. of Redding, CA with a bid of $1,283,750.00; and
WHEREAS, in addition to the construction contract funds, contingency funds need to be allocated; and
WHEREAS, a supplemental budget authorization is required to provide sufficient funds to design and construct the project.

NOW, THEREFORE, BE IT RESOLVED THAT the City of Shasta Lake City Council hereby:

1. Approves a supplemental budget authorization in the amount of $833,000.00 from the electric fund reserves.

2. Declares Cal Electro, Inc. of Redding, CA the low responsive, responsible bidder, awards a construction contract in the amount of $1,283,750.00 to Cal Electro, Inc. of Redding, CA for the construction of the Flanagan Pole Replacements - 115kV Transmission project, and approves a total of $1,483,000.00 to allow for a construction contingency and design consulting.

PASSED, APPROVED, AND ADOPTED this 15th day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
7 Cal Electro, Inc
License No. 390480
DIR No. 1000742172
Item # Description Est. Quantity Unit Unit Price Total
1 Access/Mobilization/Demobilization 1 LS $72,000.00 $72,000.00 2 Erosion and Sediment Control 1 LS $3,000.00 $3,000.00 3 Removal of Structures 1 LS $50,000.00 $50,000.00
4 Installation of Replacement Structures 1 LS $1,150,000.00 $1,150,000.00 5 Installation of Water Bars or Rolling Dips 25 EA $350.00 $8,750.00 Engineer's Estimate: $650,000 Base Bid Total: $1,283,750.00 Subcontractor:

Flanagan Pole Replacements 115kV Transmission Project
Bid No. 2021-01
Bid Opening Date: January 27, 2022
Pacific Power & Engineering
8 Report and Recommendations 4.3 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Mayor and City Council Members
FROM: James Takehara, Electric Utility Director
DATE: January 26, 2022
SUBJECT: Authorization of Purchase and Sale of Energy and the Environmental Attributes of Energy for Future Periods
FILE NO: A-050-080-008

RECOMMENDATION:

Staff recommends the City Council adopt a resolution authorizing the City Manager to purchase and sell wholesale electricity supply for calendar years (“CY”) 2023 – 2025 and renewable products for CY 2025 – 2034.

BACKGROUND:

In May 2021, the City Council adopted Resolution CC-2021-31, which appropriated $28,326,457 for the purchase of power supply commodities and related compliance instruments for calendar year (“CY”) 2023 and CY 2024 combined. The appropriated amount was equal to the previous approved budget amounts (i.e., FY21-FY22) and were based on assumptions compiled in early 2020. Since May 2021, market conditions have changed markedly, and the underlying assumptions used to compile them are obsolete. The purpose of the attached Resolution is to (1) establish appropriations to enable power supply transactions for CY 2023, 2024, and 2025, and (2) establish appropriations for the purchase of Renewable Energy Credits for a 10-year period.

Staff is evaluating power supply commodities and related compliance instruments for future years where market prices appear to be reflecting several systematic changes in the electricity markets.

The wholesale power market is currently 30% - 50% more costly than pricing just one year ago.

This appears to be driven by several issues impacting supply. First, the west wide drought appears to have a continuing effect on the total amount of electricity available from hydroelectric resources, which contributes to higher pricing in the short term. Second, there has been significant reductions in supply driven by government policies intended to reduce the reliance on coal, natural gas, and nuclear power plants in California, Oregon, Washington, and Idaho. Most of these generating stations were not replaced in kind. This type of supply loss can place sustained upward pressure on pricing for several years until replacement energy takes its place, which leads us to another issue. Third, new replacement power plants, particularly the new renewable energy resources policy makers have been promoting, have been delayed due to a lack of access to the 9 grid. When building a powerplant in a new location (as opposed to where the original plant was located), new powerlines must also be built to interconnect new generation to the existing grid.

These “gen-tie” lines require technical engineering studies to ensure their addition do not cause adverse impacts on other areas of the electric grid. However, the necessary studies have been delayed since the powerline owners, including California’s largest privately owned utilities, are being directed by public, legal, political, and internal forces to focus their attention and work efforts on wildfire prevention work on existing powerlines. Demand for electricity slowed briefly during the early part of the pandemic but has largely recovered. The pandemic is impacting supply chains and labor causing additional cost pressures. Many of these supply impacts are expected to persist and have a sustained impact on market conditions. Therefore, staff is exploring power supply options for the portfolio’s remaining needs in CY 2023 through CY 2025.

Staff is also requesting appropriations to fund the purchase of renewable products. California changed its renewable product laws to require electric utilities to enter long-term contracts for these compliance instruments, known as “Renewable Energy Credits,” or RECs, and related products. At least 65% of the renewable products used for compliance must come from long term contracts, defined as a contract of ten or more years in term. Federal power purchased from Western Area Power Administration (“WAPA”) contains a small amount of qualifying renewable products. Unfortunately, this serves only 1% or less of the City’s compliance requirement. The vast majority of WAPA power, like that from Shasta Dam, do not count toward the State’s REC mandates because the power plants are too big. Staff is evaluating a ten-year contract to begin building a set of qualifying contracts to address the State’s new mandate. The proposal would begin delivering RECs to the City starting in 2025 and would span a period of ten years. Staff recommends structuring the contract to meet 100% of the City’s requirement for the first three years of the contract (i.e., 2025-2027), then a small percentage of need for the remaining seven years. This allows the City to explore other pricing from other suppliers and mitigate certain risks associated with long-term contracts by incorporating greater diversity of products, suppliers, technology, etc. when building this portion of the electric portfolio. Staff does not have a term sheet accompanying this request since pricing proposals are only valid for a short period of time (i.e., hours). Therefore, staff is seeking budget authority for a defined product to enable action.

Purchasing power supply for future periods will not resolve the energy supply problems that are projected to occur in California and neighboring regions, like those experienced in 2020. However, it would position the City to have sufficient power supply under contract to meet its projected needs, help protect electric rate payers from potentially elevated and volatile market prices, help to stabilize electric rates, and possibly position the City from experiencing “rolling blackouts.” The items above were discussed at the Electric Committee meeting held on January 27, 2022, and the Electric Committee supports these actions.
10 FISCAL IMPACTS:

The following changes to appropriations are requested to Accounts 520-330:

Calendar Year Account Current
Appropriations
Modified
Appropriations
Supplemental
Request
2023 5202 $6,437,000 $8,678,000 $2,250,000
2024 5201 $4,940,000 $6,690,000 $1,750,000
2025 5201 $0 $6,690,000 $6,690,000
2025-2034
(RECs)
5201 $0 $10,000,000 $10,000,000
The attached resolution would add $2.25 million of appropriations for CY 2023 that would enable power supply transactions that would have offsetting revenues. Therefore, there would be no incremental impact to the electric fund nor electric rates for bundled electricity customers.

The attached resolution would result in power supply budgets of $6.69 million for both CY 24 and CY 25. The impact to electric rates will depend on the actual cost of power supply in each year.

No action will be needed to incorporate any change in rates as the electric rate structure includes an adjustment clause, the “Power Cost Adjustment” (“PCA”) to ensure electric rates appropriately recover costs.

The attached resolution would establish a $10 million appropriation to enable REC purchases with delivery of products in CY 2025 – CY 2034. A purchase within this budget would not have an incremental rate impact since the cost of the proposed transaction is within current budget assumptions.

These transactions would not have impacts on immediate cash balances or current rates, as costs would be incurred approximately 1 month after delivery of products. Future budgets and rates would incorporate these costs for proper recovery.

ATTACHMENTS:

Resolution
DISTRIBUTION:

City Council
11 RESOLUTION NO. CC-2022-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE AUTHORIZING

THE PURCHASE AND SALE OF ENERGY AND THE ENVIRONMENTAL ATTRIBUTES OF

ENERGY FOR FUTURE PERIODS
WHEREAS, in 2014, the City Council adopted Resolution CC-14-65, which authorized the purchase and sale of energy and the environmental attributes of energy, and energy delivery; provided that funds for purchases are budgeted by the City Council; and WHEREAS, grid operators accurately predicted that systemic supply shortfalls would result in major reliability issues in 2020 and would grow and persist over the next decade; and WHEREAS, City Council adopted Resolution CC-2021-31 appropriating funds for the purchase of electricity and related products for calendar years 2023 and 2024, which staff utilized to secure a portion of its power supply needs; and
WHEREAS, the City desires to enable staff to execute market purchases for future periods to reduce electric ratepayers from potential substantial market volatility and inflation; and WHEREAS, the City desires to enter into a ten-year contract for products that satisfies a portion of its legal mandate under California’s renewable energy laws.

NOW, THEREFORE, BE IT RESOLVED that the City of Shasta Lake City Council authorizes the purchase or sell energy and environmental attributes of energy and transmission delivery for calendar years 2023, 2024, 2025, modifying existing appropriations by $2.25 million, $1.75 million, and $6.69 million, respectively.

BE IT FURTHER RESOLVED that budget appropriations are hereby established for the purpose of purchasing products that satisfy the City’s requirements under California’s renewable energy laws with a total authorization of $10 million net expenditure with products delivered over the tenyear term from 2025-2034, inclusive.

BE IT FURTHER RESOLVED that the budget appropriations authorized under this Resolution shall be superseded by the budget amounts approved by the City Council for fiscal years 2023, 2024, 2025, and 2026 for account codes 520-330-5208, 520-330-5201, 520-330-5202, and 520- 330-5305.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Shasta Lake held on February 15, 2022 by the following vote:

AYES:

NOES:

ABSENT:

_____________________________
RICK KERN, Mayor
ATTEST: _____________________________
TONI M. COATES, CMC
City Clerk
12 STATE OF CALIFORNIA
City of Shasta Lake
I, Toni M. Coates, of the City of Shasta Lake, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a Resolution CC-2022-XX adopted by said City of Shasta Lake on this 16th day of February, 2022.
_______________________________
Toni M. Coates, CMC, City Clerk of the
City of Shasta Lake, State of California
By: ____________________________
Toni M. Coates, CMC, City Clerk
13 Report and Recommendations 4.4 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: February 9, 2022
SUBJECT: Cash & Investment Report for June 30, 2021
FILE NO: F-200-150-015

RECOMMENDATION:

Staff submits for approval the attached Cash & Investment Report for the period ending June 30, 2021.

BACKGROUND:

Effective January 1, 1996, California enacted into law Senate Bills 564 and 866, which outline standards and requirements regarding investment activities for local public agencies. Sound investment policies, conservative management of public funds, and quarterly reporting requirements to the governing body were the main focus of this legislation.

The law requires that the chief fiscal officer submit an investment report to the City Council (governing body) each quarter that consists of the following information:
 issuers (bank or institution)
 type of investment or description
 dollar amount
 interest rate
 market valuation
 percent of each investment within the overall portfolio  date of maturity
The source of the valuation of each investment is required to be reported to the City Council.

Additionally, a statement indicating the agency’s ability, or lack thereof, to meet the next six (6) months cash flow requirements is required.
14 Each of the criteria listed above has been addressed in the attached analysis of the cash and investments that the City held on June 30, 2021. The source of market valuations has been quoted from documents received from the bank or institution that is the issuer of each of the investments. If staff did not receive this information from the bank or institution, market value has been listed as equal to the carrying amount. Additionally, we have indicated whether funds are “restricted” for a particular purpose. Restricted funds are usually the amount of funds required to service the last debt service payment on a loan or funds for special projects (water improvement project and housing rehabilitation).

On an overall basis, the City of Shasta Lake should be able to meet its cash flow requirements for the next six months.

FISCAL IMPACTS:

None
ATTACHMENTS:
• City of Shasta Lake Cash & Investment Report
• Resolution for the approval of the June 30, 2021 Cash & Investment Report • Cash and Investment Notes
DISTRIBUTION:

City of Shasta Lake City Council
City of Shasta Lake Files
15 Market Date of
Bank or Institution Description Amount Interest Rate Valuation % of Portfolio Maturity Cornerstone Community Bank Checking Account $1,738,483 n/a $1,738,483 3.3649% n/a City of Shasta Lake Petty Cash $2,100 n/a $2,100 0.0041% n/a Wells Fargo Investments Investments $23,898,145 variable $23,968,032 46.3917% Varies State of California
LAIF-City $25,680,656 0.262% $25,682,787 49.7107% n/a
Shasta County Trustee
(Restricted) LAIF-County* $273,046 0.262% $273,069 0.5285% n/a Grand Total $51,592,430 $51,664,470 100%
CalPERS CERBT ** Retiree Health Benefit Trust $9,721,195 variable $9,721,195 n/a n/a CalPERS CEPPT ** Retiree Pension Benefit Trust $101,576 variable $101,576 n/a n/a *Restricted = Debt Service Reserve Requirements
** This is a portfolio investment and not a bank deposit. Each employer owns a percentage of the portfolio, and does not have direct ownership of the securities in the portfolio.

It is expected that the City of Shasta Lake will be able to meet its cash flow requirements for the next six months. ____________________________________ 30-Jun-2021
Wendy Howard Date
Finance Director
City of Shasta Lake
Analysis of Cash and Investments
June 30, 2021
16 RESOLUTION CC-2022-XX

A CITY OF SHASTA LAKE CITY COUNCIL RESOLUTION ACCEPTING THE QUARTERLY CASH AND INVESTMENT REPORT FOR THE PERIOD ENDING JUNE 30, 2021 WHEREAS, the Chief Fiscal Officer is required under Senate Bills 564 and 866 to provide a quarterly investment report to the City Council, and
WHEREAS, the report includes the issuers, type of investment or description, dollar amount, interest rate, market valuation, the percent of each investment within the overall portfolio, the date of maturity, and
WHEREAS, the source of the valuation of each investment has been quoted from documents received from the bank or institution that is the issuer of each of the investments and when not supplied the amount has been listed as equal to the carrying value, and WHEREAS, on an overall basis, the City of Shasta Lake will be able to meet its cash flow requirements for the next six months.

NOW, THEREFORE BE IT RESOLVED that the Shasta Lake City Council accepts the Quarterly Cash and Investment Report for the Period ending June 30, 2021 for review.

PASSED, APPROVED, AND ADOPTED this 15th day of February 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
17 Cash Accounts Held at June 30, 2021
CCB Checking Account-The City’s checking account at Cornerstone Community Bank is primarily used to manage the day-to-day operations of the City.

Wells Fargo Advisors CD’s (Managed by Chandler)-The Wells Fargo account holds a mix of investments, which comply with California regulations. The yield on these investments varies.

Local Agency Investment Fund (LAIF)-City- LAIF is where the City keeps its idle cash for all funds. It’s essentially the City’s cash reserves and is necessary for liquidity. This type of account allows the City to deposit and withdraw funds a maximum of 15 transactions per month without fees or penalties.

LAIF-County-The County LAIF account is essentially a reserve fund for the debt service for the USDA sewer loan. This $5.6 million loan was used to finance the expansion of the wastewater treatment plant. The final payment on the bond is due September 2034. 18 Report and Recommendations 4.6 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: February 9, 2022
SUBJECT: Cash & Investment Report for December 31, 2021 FILE NO: F-200-150-015

RECOMMENDATION:

Staff submits for approval the attached Cash & Investment Report for the period ending December 31, 2021.

BACKGROUND:

Additionally, a statement indicating the agency’s ability, or lack thereof, to meet the next six (6) months cash flow requirements is required.
19 Each of the criteria listed above has been addressed in the attached analysis of the cash and investments that the City held on December 31, 2021. The source of market valuations has been quoted from documents received from the bank or institution that is the issuer of each of the investments. If staff did not receive this information from the bank or institution, market value has been listed as equal to the carrying amount. Additionally, we have indicated whether funds are “restricted” for a particular purpose. Restricted funds are usually the amount of funds required to service the last debt service payment on a loan or funds for special projects (water improvement project and housing rehabilitation).

On an overall basis, the City of Shasta Lake should be able to meet its cash flow requirements for the next six months.

FISCAL IMPACTS:

None
ATTACHMENTS:
• City of Shasta Lake Cash & Investment Report
• Resolution for the approval of the December 31, 2021 Cash & Investment Report • Cash and Investment Notes
DISTRIBUTION:

City of Shasta Lake City Council
City of Shasta Lake Files
20 Market Date of
Bank or Institution Description Amount Interest Rate Valuation % of Portfolio Maturity Cornerstone Community Bank Checking Account $2,223,029 n/a $2,223,029 4.1107% n/a City of Shasta Lake Petty Cash $2,100 n/a $2,100 0.0039% n/a Wells Fargo Investments Investments $23,796,906 variable $23,862,734 44.1255% Varies State of California
LAIF-City $27,715,557 0.23% $27,717,857 51.2542% n/a
Shasta County Trustee
(Restricted) LAIF-County* $273,435 0.23% $273,458 0.5057% n/a Grand Total $54,011,027 $54,079,177 100%
CalPERS CERBT ** Retiree Health Benefit Trust $10,081,889 variable $10,081,889 n/a n/a CalPERS CEPPT ** Retiree Pension Benefit Trust $103,175 variable $103,175 n/a n/a *Restricted = Debt Service Reserve Requirements
** This is a portfolio investment and not a bank deposit. Each employer owns a percentage of the portfolio, and does not have direct ownership of the securities in the portfolio.

It is expected that the City of Shasta Lake will be able to meet its cash flow requirements for the next six months. ____________________________________ 30-Sep-2021
Wendy Howard Date
Finance Director
City of Shasta Lake
Analysis of Cash and Investments
September 30, 2021
21 RESOLUTION CC-2022-XX

A CITY OF SHASTA LAKE CITY COUNCIL RESOLUTION ACCEPTING THE QUARTERLY CASH AND INVESTMENT REPORT FOR THE PERIOD ENDING DECEMBER 31, 2021 WHEREAS, the Chief Fiscal Officer is required under Senate Bills 564 and 866 to provide a quarterly investment report to the City Council, and
WHEREAS, the report includes the issuers, type of investment or description, dollar amount, interest rate, market valuation, the percent of each investment within the overall portfolio, the date of maturity, and
WHEREAS, the source of the valuation of each investment has been quoted from documents received from the bank or institution that is the issuer of each of the investments and when not supplied the amount has been listed as equal to the carrying value, and WHEREAS, on an overall basis, the City of Shasta Lake will be able to meet its cash flow requirements for the next six months.

NOW, THEREFORE BE IT RESOLVED that the Shasta Lake City Council accepts the Quarterly Cash and Investment Report for the Period ending December 31, 2021 for review.

PASSED, APPROVED, AND ADOPTED this 15th day of February 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
22 Cash Accounts Held at December 31, 2021
CCB Checking Account-The City’s checking account at Cornerstone Community Bank is primarily used to manage the day-to-day operations of the City.

Wells Fargo Advisors CD’s (Managed by Chandler)-The Wells Fargo account holds a mix of investments, which comply with California regulations. The yield on these investments varies.

LAIF-County-The County LAIF account is essentially a reserve fund for the debt service for the USDA sewer loan. This $5.6 million loan was used to finance the expansion of the wastewater treatment plant. The final payment on the bond is due September 2034. 23 Report and Recommendations 4.5 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: February 9, 2022
SUBJECT: Cash & Investment Report for September 30, 2021 FILE NO: F-200-150-15

RECOMMENDATION:

Staff submits for approval the attached Cash & Investment Report for the period ending September 30, 2021.

BACKGROUND:

Additionally, a statement indicating the agency’s ability, or lack thereof, to meet the next six (6) months cash flow requirements is required.
24 Each of the criteria listed above has been addressed in the attached analysis of the cash and investments that the City held on September 30, 2021. The source of market valuations has been quoted from documents received from the bank or institution that is the issuer of each of the investments. If staff did not receive this information from the bank or institution, market value has been listed as equal to the carrying amount. Additionally, we have indicated whether funds are “restricted” for a particular purpose. Restricted funds are usually the amount of funds required to service the last debt service payment on a loan or funds for special projects (water improvement project and housing rehabilitation).

On an overall basis, the City of Shasta Lake should be able to meet its cash flow requirements for the next six months.

FISCAL IMPACTS:

None
ATTACHMENTS:
• City of Shasta Lake Cash & Investment Report
• Resolution for the approval of the September 30, 2021 Cash & Investment Report • Cash and Investment Notes
DISTRIBUTION:

City of Shasta Lake City Council
City of Shasta Lake Files
25 Market Date of
Bank or Institution Description Amount Interest Rate Valuation % of Portfolio Maturity Cornerstone Community Bank Checking Account $2,148,383 n/a $2,148,383 4.2872% n/a City of Shasta Lake Petty Cash $2,100 n/a $2,100 0.0042% n/a Wells Fargo Investments Investments $23,924,776 variable $23,985,569 47.8639% Varies State of California
LAIF-City $23,700,731 0.24% $23,702,697 47.2994% n/a
Shasta County Trustee
(Restricted) LAIF-County* $273,269 0.24% $273,292 0.5454% n/a Grand Total $50,049,259 $50,112,041 100%
CalPERS CERBT ** Retiree Health Benefit Trust $9,705,908 variable $9,705,908 n/a n/a CalPERS CEPPT ** Retiree Pension Benefit Trust $101,434 variable $101,434 n/a n/a *Restricted = Debt Service Reserve Requirements
** This is a portfolio investment and not a bank deposit. Each employer owns a percentage of the portfolio, and does not have direct ownership of the securities in the portfolio.

A CITY OF SHASTA LAKE CITY COUNCIL RESOLUTION ACCEPTING THE QUARTERLY CASH AND INVESTMENT REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 2021 WHEREAS, the Chief Fiscal Officer is required under Senate Bills 564 and 866 to provide a quarterly investment report to the City Council, and
WHEREAS, the report includes the issuers, type of investment or description, dollar amount, interest rate, market valuation, the percent of each investment within the overall portfolio, the date of maturity, and
WHEREAS, the source of the valuation of each investment has been quoted from documents received from the bank or institution that is the issuer of each of the investments and when not supplied the amount has been listed as equal to the carrying value, and WHEREAS, on an overall basis, the City of Shasta Lake will be able to meet its cash flow requirements for the next six months.

NOW, THEREFORE BE IT RESOLVED that the Shasta Lake City Council accepts the Quarterly Cash and Investment Report for the Period ending September 30, 2021 for review.

PASSED, APPROVED, AND ADOPTED this 15th day of February 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
27 Cash Accounts Held at September 30, 2021
CCB Checking Account-The City’s checking account at Cornerstone Community Bank is primarily used to manage the day-to-day operations of the City.

Wells Fargo Advisors CD’s (Managed by Chandler)-The Wells Fargo account holds a mix of investments, which comply with California regulations. The yield on these investments varies.

LAIF-County-The County LAIF account is essentially a reserve fund for the debt service for the USDA sewer loan. This $5.6 million loan was used to finance the expansion of the wastewater treatment plant. The final payment on the bond is due September 2034. 28 Report and Recommendations 4.7
Reviewed and Approved

City Manager

AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager

DATE: February 15, 2022
SUBJECT: Resolution of the City Council Authorizing City Manager to Execute Cal Fire California Climate Investment (CCI) California Northern Region (CNR) Fire Prevention Grant Documents and Any
Subsequent Agreements
FILE NO.: New
RECOMMENDATION:

The recommended action is for Council to consider adopting a resolution authorizing the City Manager to execute grant documents and any subsequent agreements for the State of California Department of Forestry (Cal Fire) California Northern Region (CNR) Fire Prevention Grants Program.

BACKGROUND:

State of California Department of Forestry (CAL FIRE) California Northern Region (CNR) Fire Prevention Grants Program:

CAL FIRE’s CNR Grants Program mirrors their Fire Prevention Program, providing funding for fire prevention projects and activities in and near fire threatened communities that focus on increasing the protection of people, structures, and communities. Funded activities include hazardous fuels reduction, wildfire prevention planning, and wildfire prevention education with an emphasis on improving public health and safety while reducing greenhouse gas emissions.

The CNR Grants Program differs from the Fire Prevention Program in that it is a direct, non-competitive grant where applicants are invited to apply for a scheduled award amount.
29 City of Shasta Lake Fire Prevention Efforts with Cal Fire CCI Funds:

The City of Shasta Lake was invited to apply for the CNR Grant Program and is currently scheduled to be awarded $223,00. The City is proposing to use these funds to implement a fuel reduction program along the northern city limits, tying into existing firebreaks. The project will treat roughly 45 acres of dense brush and trees, using hand clearing methods and chipping, spreading the wood parts within the project area. Chips that cannot be spread will be hauled to the City waste/disposal site as green brush. The project will reduce the risk of ignitions and spread while providing safer emergency responder access. Upon successful completion, the project area will be added to the City vegetation management list for continued maintenance. Each fuel reduction project the City undertakes moves our community in the right direction to reduce wildfire activity.

Staff requests City Council to approve the attached resolution and direct staff to submit an application for funding to complete Fuel Reduction Project(s).

FISCAL IMPACTS:

If awarded, the City will be reimbursed for project expenditures up to the awarded grant amount.

ATTACHMENTS:

Draft Resolution
30 RESOLUTION CC-2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE

AUTHORIZING CITY MANAGER TO EXECUTE CAL FIRE CALIFORNIA

CLIMATE INVESTMENT CALIFORNIA NORTHERN REGION GRANT

DOCUMENTS AND ANY SUBSEQUENT AGREEMENTS
WHEREAS, the Governor of the State of California in cooperation with the California State Legislature has enacted State of California Climate Investment, which provides funds to the State of California and its political subdivisions for fire prevention programs; and WHEREAS, the State Department of Forestry and Fire Protection (CAL FIRE) has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing application by local agencies, non-profit organizations, and others under the program; and
WHEREAS, the applicant will enter into an agreement with the State of California to carry out the City of Shasta Lake Hazardous Fuels Reduction Project.

NOW, THEREFORE, BE IT RESOLVED that the City of Shasta Lake City Council

1. Approved the filing of an application for “California Climate Investment Fire Prevention Grant Program”; and

2. Certifies that said applicant has or will have sufficient funds to operate and maintain the project; and,

3. Certifies that funds under the jurisdiction of the City of Shasta Lake City Council are available to begin the project.

4. Certifies that said applicant will expend funds prior to March 30, 2025.

5. Appoints City Manager or a designee, to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project.

PASSED, APPROVED, AND ADOPTED this 15th day of February 2022 by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
•
•
31 Report and Recommendations 4.8
Reviewed and Approved

City Manager

AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager

DATE: February 15, 2022
SUBJECT: Resolution of the City Council Authorizing City Manager to Execute Cal Fire California Climate Investment (CCI) Grant Documents and Any Subsequent Agreements
FILE NO.: New
RECOMMENDATION:

BACKGROUND:

State of California Department of Forestry (CAL FIRE) Fire Prevention Grants Program:

CAL FIRE’s Fire Prevention Grants Program provides funding for fire prevention projects and activities in and near fire threatened communities that focus on increasing the protection of people, structures, and communities. Funded activities include hazardous fuels reduction, wildfire prevention planning, and wildfire prevention education with an emphasis on improving public health and safety while reducing greenhouse gas emissions.

California’s Strategic Fire Plan serves as a roadmap for project development.

Projects are evaluated based on the overall benefit to reduce the threat of wildfires to people, structures, and communities. CAL FIRE will consider the wildfire hazards and risk of an area, the geographic balance of projects, and whether the project is complementary to other fire prevention or forest health activities when awarding grants. Disadvantaged communities and low-income communities as defined by Assembly Bill 1550 (Gomez) (Stats. 2016, Ch. 369), and projects that demonstrate a carbon benefit by reducing greenhouse gas emissions and contain matching funds will receive additional priority. Projects are selected on a competitive basis and consecutive awards are not guaranteed.
32 City of Shasta Lake Fire Prevention Efforts with Cal Fire CCI Funds:

The City of Shasta Lake has been successful in two CCI awards. The City received $59,994 (2018 allocation) and $180,000 (2020 allocation). The City applied for a Chipping Program and Fuel Break off Wintu Bay Road in 2019, and a Fuel Break Program off Shasta Dam Blvd in 2020 which were not awarded. The City has since had discussions with our local Cal Fire District as well as the Shasta Lake Fire Protection District to identify the proposed project.

The proposed project would allocate $1,454,418 to address approximately 272 acres of hazardous fuel clearing in the northern and western parts of the City of Shasta Lake and its surrounding areas. The project area borders hundreds of acres of federal lands, dense with brush and trees. The rugged terrain skirting the City, paired with increasingly dry conditions has made it a critical threat to the residents, homes, and businesses in the City. This threat is reflected in the area’s recent fire history, which includes four large fires over the past four years. The project will treat 260 acres of dense brush and trees, using hand clearing methods and chipping, spreading the wood parts within the project area, as well as removal and trimming of hazardous trees along 11.6 acres of easement bordering an egress/ingress route. Chips that cannot be spread will be hauled to the City waste/disposal site as green brush. The project will reduce the risk of ignitions and spread while providing safer evacuation and emergency responder access. Upon successful completion, the project area will be added to the City vegetation management list for continued maintenance. Each fuel reduction project the City undertakes moves our community in the right direction to reduce wildfire activity.

The CalFire Fire Prevention Grants Program is an excellent funding source for the City to further our fuel reduction efforts. Staff requests City Council to approve the attached resolution and direct staff to submit an application for funding to complete Fuel Reduction Project(s).

FISCAL IMPACTS:

If awarded, the City will be reimbursed for project expenditures up to the awarded grant amount.

ATTACHMENTS:

Draft Resolution
Proposed Project Map
33 RESOLUTION CC-2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE

AUTHORIZING CITY MANAGER TO EXECUTE CAL FIRE CALIFORNIA

CLIMATE INVESTMENT GRANT DOCUMENTS AND ANY SUBSEQUENT

AGREEMENTS
WHEREAS, the Governor of the State of California in cooperation with the California State Legislature has enacted State of California Climate Investment, which provides funds to the State of California and its political subdivisions for fire prevention programs; and WHEREAS, the State Department of Forestry and Fire Protection (CAL FIRE) has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing application by local agencies, non-profit organizations, and others under the program; and
WHEREAS, the applicant will enter into an agreement with the State of California to carry out the City of Shasta Lake Fuel Reduction Project.

NOW, THEREFORE, BE IT RESOLVED that the City of Shasta Lake City Council

1. Approved the filing of an application for “California Climate Investment Fire Prevention Grant Program”; and

2. Certifies that said applicant has or will have sufficient funds to operate and maintain the project; and,

3. Certifies that funds under the jurisdiction of the City of Shasta Lake City Council are available to begin the project.

4. Certifies that said applicant will expend funds prior to March 15, 2026.

PASSED, APPROVED, AND ADOPTED this 15th day of February 2022 by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
•
•
34 38
Report and Recommendations 4.9 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Jessaca Lugo, Jr., City Manager
FROM: Wendy Howard, Finance Director
DATE: February 7, 2022
SUBJECT: Resolution Authorizing Submittal of Application for all Cal-Recycle Grants for Which the City of Shasta Lake is Eligible
FILE NO: New

RECOMMENDATION:

Staff recommends adopting a resolution authorizing submittal of application for all Cal-Recycle Grants for which the City of Shasta Lake is eligible.

BACKGROUND:

CalRecyle has made available $20,000 to help implement SB1383 Short-Lived Climate Pollutants Bill (SLCB).

SB 1383 Local Assistance Grant Program:

In September 2016, Governor Edmund Brown Jr. set methane emissions reduction targets for California (SB 1383 Lara, Chapter 395, Statutes of 2016) in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP). The targets must reduce organic waste disposal 50 percent by 2020 and 75 percent by 2025 and rescue for people to eat at least 20 percent of currently disposed surplus food by 2025.

The Department of Resources Recycling and Recovery (CalRecycle) is administering a onetime grant program meant to provide aid in the implementation of regulations adopted by CalRecycle pursuant to Chapter 395, Statutes of 2016 and SB170 Budget Act of 2021. This non-competitive grant program provides $57,000,000 of funding to local jurisdictions to assist with the implementation of regulation requirements associated with SB 1383, including but not limited to:
• Capacity Planning
• Collection
• Edible Food Recovery
• Education and outreach (includes organic waste & edible food recovery) • Enforcement and Inspection
• Program Evaluation/Gap Analysis
39 • Procurement Requirements
• Record Keeping
FISCAL IMPACTS:

Increase revenue and budget appropriation of $20,000.

ATTACHMENTS:

Resolution authorizing submittal of application for all Cal-Recycle Grants for which the City of Shasta Lake is eligible.

CalRecycle SB1383 Grant Application
DISTRIBUTION:

City of Shasta Lake City Council
40 RESOLUTION CC-2022-xx

A SHASTA LAKE CITY COUNCIL RESOLUTION AUTHORIZING SUBMITTAL OF

APPLICATION FOR ALL CALRECYCLE GRANTS FOR WHICH CITY OF SHASTA LAKE IS

ELIGIBLE
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and:

WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and; WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake authorizes the submittal of application(s) to CalRecycle for all grants for which City of Shasta Lake is eligible; and:

BE IT FURTHER RESOLVED that the City Manager, or her designee is hereby authorized and empowered to execute in the name of the City of Shasta Lake all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and
BE IT FURTHER RESOLVED that these authorizations are effective for five (5) years from the date of adoption of this resolution.

PASSED, APPROVED, AND ADOPTED this 15th day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
41 Application
Application Information
Applicant: City of Shasta Lake
Cycle Name: SB 1383 Local Assistance Grant Program Application Due Date: 2/1/2022 Cycle Code: OWR1 Secondary Due Date: 3/1/2022
Grant ID: 25538
Grant Funds Requested: $20,000.00 Request Advance Payment: Yes Matching Funds: $0.00 (if applicable)
Awarded Funds: $0.00
Project Summary: Implement SB1383 program
Applicant/Participant
Name: City of Shasta Lake Lead: X
Federal Tax ID: Jurisdiction: Shasta Lake
County: Shasta
Contacts
Prime Second Auth Cnslt
Wendy Howard Title: Finance Director X X
Finance
4477 Main Street
Shasta Lake, CA 96019
Phone: 5302757429
Fax: 5302757414
Email: [email protected]
Budget
Category Name Amount
Admin Costs $0.00
Collection $0.00
Education $0.00
Enforcement $0.00
Equipment $20,000.00
Indirect Costs $0.00
Marketing/Promotion/Outreach $0.00
Materials $0.00
Personnel $0.00
Training $0.00
Upgrade/Expansion $0.00
No Site Information Provided
Documents Document Title Received Date
Required
Application Certification CalRecycle SB1383 Grant ApplicationCertification - signed 2/1/2022 Generated By: Wendy Howard
Grants Management System (GMS)
https://secure.calrecycle.ca.gov/Grants/Grant/Grant.aspx? GrantID=25538&Mode=View&Messages=H4sIAAAAAAAEAIWQMQ%2bCMBCFdxP% 2fQ9PdFnQjBaKLi8QBB9daKjRpS9MWgX9vg4RFjNu7d1%
42 Required By Secondary Due Date
Resolution - Individual Application
Resolution - Regional Application Lead
Participant
Other Supporting Document(s)
Draft Resolution Reso SB1383 CalRecycle Grant App 2/1/2022 Joint Powers Agreement Joint Powers Agreement Document – N/A 2/1/2022 Letter of Authorization/Resolution
Letter of Designation Letter of Designation Document – N/A 2/1/2022 Resolution
1383 Local Assistance Grant Program: Check the following, as applicable. See Application Guidelines and Instructions for more information.

X Applicant acknowledges that its approved Resolution must be uploaded no later than the secondary due date.

Program Questions
California Labor Code section 1782 proh bits a charter city from receiving state funding or financial assistance for construction projects if that charter city does not comply with Labor Code sections 1770-1782. If any applicants or participating jurisdictions are charter cities or joint powers authorities that include charter cities, the lead applicant must certify that Labor Code section 1782 does not prohibit any included charter city from receiving state funds for the project described in this application. If it is determined after award that a participating jurisdiction is a charter city proh bited from receiving state funds for this grant project, the grant will be terminated and any disbursed grant funds shall be returned to CalRecycle.

If any applicant or participating jurisdiction is a charter city or a joint powers authority that contains one or more charter cities, does Labor Code section 1782 prohibit those charter cities from receiving state funding for the project described in this grant application? Check the following, as applicable.

X Not Applicable. This application does not include any charter cities. 1383 Local Assistance Grant Program: Will your jurisdiction have an enforceable ordinance(s), or similarly enforceable mechanism pursuant to section 18981.2 of Title 14 of the California Code of Regulations submitted to CalRecycle by April 1, 2022? X Yes
1383 Local Assistance Grant Program: If you are a Special District, do you provide solid waste collection services? X Not Applicable
https://secure.calrecycle.ca.gov/Grants/Grant/Grant.aspx? GrantID=25538&Mode=View&Messages=H4sIAAAAAAAEAIWQMQ%2bCMBCFdxP% 2fQ9PdFnQjBaKLi8QBB9daKjRpS9MWgX9vg4RFjNu7d1%
43 Report and Recommendations 4.10 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: February 15, 2022
SUBJECT: Resolution approving Exception to the CalPERS 180-Day Wait Period with regard to the re-hiring of retired Public Works Director / Engineer Jeffrey Tedder
FILE NO: New

RECOMMENDATION:

Staff recommends adopting an exception to the 180-day wait period for public agencies set by California Public Employees’ Retirement System (CalPERS) as required by California Public Employees’ Pension Reform Act of 2013 (PEPRA) and granting the City Manager authority to execute the necessary hiring documentation. The resolution, if approved, would allow Jeffrey Tedder, former Public Works Director / Engineer, to be rehired as a retired annuitant effective 3/5/2022.

BACKGROUND:

As a Civil Engineer, Jeffrey Tedder, has specialized knowledge in design and contract supervision. The Shasta Lake Downtown Revitalization Project will be starting soon, and Mr.

Tedder would provide project coordination of the project through December 2022. He would be solely assigned to the Shasta Lake Downtown Revitalization Project, for a maximum of 960 hours in each fiscal year, FY2021-2022 and FY2022-2023. Regular staff within the department will perform the essential duties of the Public Works Director / City Engineer. Mr. Tedder would be available to the department on an as-needed, extra help basis. He will be assigned the title of Extra-help Annuitant Engineer and will not be assuming the roles and responsibilities of his former position. Mr. Tedder would be re-hired effective 3/5/2022, with an anticipated end of assignment in December 2022.

Normally, the 180-day resolution could not be considered until 60 days after retirement date for a member who retires before their normal retirement age (bona fide separation in service). This along with the 180-day wait period requirement has been suspended pursuant to the Governor’s Executive Order N-25-20 (Executive Order (EO) N-12-21 amended the original EO N-25-20 dated March 12, 2020, which is still in place and currently set to expire on March 31, 2022) 44 declaring a state of emergency due to the COVID-19 pandemic. This suspension will remain in place until the state of emergency is lifted. Currently this scheduled to be 3/31/2022 and could be extended out further.

FISCAL IMPACTS:

The fiscal impact would be approximately $52,000 annually from the General Fund, of which a portion would be recovered from other supported Funds.

ATTACHMENTS:

Resolution approving exception to the CalPERS 180-Day Wait Period with regard to the re-hiring of retired Public Works Director / Engineer Jeffrey Tedder CalPERS Circular Letter 200-015-20 - Governor’s Executive Order N-25-20 CalPERS Circular Letter 200-056-21 - Governor’s Executive Order N-12-21 DISTRIBUTION:

City of Shasta Lake City Council
45 RESOLUTION CC-2022-xx
A SHASTA LAKE CITY COUNCIL RESOLUTION FOR EXCEPTION TO THE 180-DAY WAIT PERIOD
GOV. CODE SECTIONS 7522.56 & 21224
WHEREAS, in compliance with Government (Gov.) Code section 7522.56 of the Public Employees’ Retirement Law, the City of Shasta Lake must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date; and WHEREAS, Jeffrey Tedder, last 4 digits of the social security number retired from City of Shasta Lake in the position of Public Works Director / Engineer, effective 1/3/2022; and WHEREAS, Gov. Code section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is 7/3/2022 without this certification resolution; and
WHEREAS, Gov. Code section 7522.56 provides that this exception to the 180-day wait period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the Shasta Lake City Council, the City of Shasta Lake and Jeffrey Tedder certify that Jeffrey Tedder has not and will not receive a Golden Handshake or any other retirement-related incentive; and
WHEREAS, the Shasta Lake City Council, hereby appoints Jeffrey Tedder as an extra help retired annuitant to perform the duties of the Public Works Director / Engineer for the City of Shasta Lake under Gov. Code section 21224 effective 3/5/2022; and
WHEREAS, the entire employment agreement, contract or appointment document between Jeffrey Tedder and the City of Shasta Lake has been reviewed by this body and is attached herein; and
WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar; and
WHEREAS, the employment shall be limited to 960 hours per fiscal year for all CalPERS employers; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and
WHEREAS, the maximum base salary for this position is $12,861 and the hourly equivalent is $74.20, and the minimum base salary for this position is $11,892 and the hourly equivalent is $68.61; and
WHEREAS, the hourly rate paid to Jeffrey Tedder will be $74.20/hour; and 46 WHEREAS, Jeffrey Tedder has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake hereby certifies the nature of the appointment of Jeffrey Tedder as described herein and detailed in the attached employment agreement/contract/appointment document and that this appointment is necessary to fill the critically needed position of extra-help annuitant Engineer for the City of Shasta Lake by 3/5/2022 for more than what permanent employees are able to do at this time.

PASSED, APPROVED, AND ADOPTED this 15th day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
47 California Public Employees’ Retirement System
P.O. Box 942715 | Sacramento, CA 94229-2715
(888) CalPERS (or 888-225-7377) | TTY: (877) 249-7442
www.calpers.ca.gov
Announcements
Circular Letter
March 18, 2020
Circular Letter: 200-015-20
Distribution: IV, V, VI, X, XII, XVI
To: All CalPERS Employers
Subject: Governor’s Executive Order N-25-20
Purpose
The purpose of this Circular Letter is to inform you of the impact of Executive Order N-25-20 on CalPERS retirees employed as retired annuitants with all CalPERS employers.

Work Hour Limitation Exceptions
On March 4, 2020, Governor Gavin Newsom declared a statewide state of emergency due to the COVID-19 pandemic. Governor Newsom issued Executive Order N-25-20 to further enhance California’s ability to respond to COVID-19. Consistent with applicable federal law, and to ensure adequate state staffing to expedite emergency response and recovery, the work hour limitations for retired annuitants are suspended from the date the state of emergency was declared until the state of emergency is lifted.

The intent of the executive order is to suspend reinstatement and the retired annuitant work hour limitation of 960 hours per fiscal year during the state of emergency. Any hours worked by a retired annuitant to ensure adequate staffing during the state of emergency will not be counted toward the 960-hour limit for the fiscal year.

Wait Period Exceptions
Under this executive order, the 180-day break in service requirement under Government Code section 7522.56(f) is also suspended for retired annuitants hired to ensure adequate staffing during the state of emergency.
48 In addition, under subdivision (c) of section 586.2 of Title 2 of the California Code of Regulations (CCR), the declaration of a state of emergency exempts retired annuitants from the 60-day separation in service requirement under subdivision (a)(2) of CCR section 586.2. However, please be aware, the prohibition under subdivision (a)(1) of CCR section 586.2 on any predetermined agreement between an employer and an impending retiree who has not attained normal retirement age, continues to remain in effect, consistent with federal law.

Timeline
The start date for the state of emergency was March 4, 2020. The suspension of the retired annuitant work hour limitation and wait period exceptions will remain in place until the state of emergency is lifted.

Continued Compliance
Agencies must continue to enroll, and report retired annuitants to CalPERS. The remaining working after retirement provisions in Government Code sections 21221(h), 21224(a), and 7522.56(e) will continue to apply:
• Compensation for the appointment shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule divided by 173.333 to equal an hourly rate.
• A retired annuitant shall not receive any benefit, incentive, compensation in lieu of benefits, or other form of compensation in addition to the hourly pay rate.

The emergency proclamation applies to work performed by a retired annuitant hired to ensure adequate staffing during the state of emergency. You must notify the director of the California Department of Human Resources of any individual employed pursuant to these waivers.

Notification should be sent to [email protected].

CalPERS will continue to monitor the work hours for retired annuitants covered by this order and send communication to confirm when a violation is found and whether it complies with these exceptions.

Questions
If you have any questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888- 225-7377).

Renee Ostrander, Chief
Employer Account Management Division
49 California Public Employees’ Retirement System
P.O. Box 942715 | Sacramento, CA 94229-2715
888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442
www.calpers.ca.gov
Announcements
Circular Letter
September 13, 2021
Circular Letter: 200-056-21
Distribution: IV, V, VI, X, XII, XVI
To: All CalPERS Employers
Subject: Governor’s Executive Order N-12-21
Purpose
The purpose of this Circular Letter is to inform you of Executive Order N-12-21, which suspends Government (Gov.) Code section 7522.56(f), the 180-day break in service requirement, for CalPERS retirees seeking employment as a retired annuitant with a CalPERS employer to ensure adequate staffing in response to COVID-19, until further notice.

Background
On August 16, 2021, Governor Gavin Newsom issued Executive Order N-12-21, which amended some of the previously reinstated working after retirement rules for those retired annuitants employed to address the rising case rates caused by the COVID-19 delta variant to ensure adequate staffing.

Summary of Impacts
Executive Order N-12-21 is the third Executive Order issued by the governor providing direction on the hiring of retired annuitants for ensuring adequate staffing for COVID-19. The following suspensions are in effect:
• 960-work hour per fiscal year limit
• Retirees employed in vacant positions under Gov. Code section 21221(h) can only be appointed to the position once
• 60-day bona fide separation in service
50 Circular Letter: 200-056-21
September 13, 2021

Page 2 of 3 ends

• 180-day wait period after retirement
However, note the following post-retirement employment requirement continues to be in effect (after being reinstated by Executive Order N-08-21, effective July 1, 2021):
• If a retirement incentive was received, retirees must wait 180 days before returning to work.
180-Day Wait Period Exception
Under Executive Order N-25-20, the 180-day break in service requirement under Gov. Code section 7522.56(f) and (g) were suspended for retired annuitants hired to ensure adequate staffing during the state of emergency. Executive Order N-08-21 reinstated these requirements.

The most recent Executive Order N-12-21 suspends the 180-day wait requirement again for appointments that begin on or after July 1, 2021. If a retiree is needed to return to work prior to waiting 180 days from their retirement date to ensure adequate staffing, then the retiree can return to work as part of Executive Order N-12-21.

For state agencies, the director of the California Department of Human Resources (CalHR) must be notified of any individual employed pursuant to these waivers. Notification should be emailed to CalHR’s California State of Emergency mailbox. Public agencies and schools must notify CalPERS of any individual employed pursuant to these waivers. Notification should be emailed to CalPERS’ Executive Order Review mailbox.

For retired annuitant appointments that begin on or after July 1, 2021, retirees that received a retirement incentive must wait 180 days prior to returning to work as a retired annuitant with no exceptions. Executive Order N-12-21 did not lift this requirement.

Work Hour Limitation
On March 4, 2020, the governor declared a statewide state of emergency due to the COVID-19 pandemic. The governor issued Executive Order N-25-20 to further enhance California’s ability to respond to COVID-19. Consistent with applicable federal law, and to ensure adequate state staffing to expedite emergency response and recovery, the work hour limitations under Gov.

Code section 7522.56(d) were suspended.

The suspension of the work hour limitation is still in effect. Any hours worked by a retired annuitant to ensure adequate staffing during the state of emergency will not be counted toward the 960-hour limit for the fiscal year. The work hour limitations for retired annuitants are suspended from the date the state of emergency was declared until further notice. 51 Circular Letter: 200-056-21
September 13, 2021

Page 3 of 3 ends

Appointment to Vacant Positions
On December 14, 2020, the governor signed into effect Executive Order N-84-20. Paragraph four of this order allowed for the suspension of the 960-hour limitation under Gov. Code section 21221(h). Along with the suspension of the hours, this order also allows for retirees to be appointed more than once to the same vacancy under Gov. Code section 21221(h). This portion of the order will remain in effect until further notice.

Bona Fide Separation
The suspension of the 60-day separation in service is still in effect. Under subdivision (c) of section 586.2 of Title 2 of the California Code of Regulations (CCR), the declaration of a state of emergency exempts retired annuitants from the 60-day separation in service requirement under subdivision (a)(2) of CCR section 586.2. However, the prohibition under subdivision (a)(1) of CCR section 586.2 on any predetermined agreement between an employer and an impending retiree who has not attained normal retirement age continues to remain in effect consistent with federal law.

Continued Compliance
Agencies must continue to enroll and report retired annuitants to CalPERS. The remaining working after retirement provisions in Gov. Code sections 21221(h), 21224(a), and 7522.56(e) will continue to apply:
• Compensation for the appointment shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule divided by 173.333 to equal an hourly rate.
• A retired annuitant shall not receive any benefit, incentive, compensation in lieu of benefits, or other form of compensation in addition to the hourly pay rate.

CalPERS will continue to monitor the work hours for retired annuitants and send communication to confirm when a violation is found and whether it complies with working after retirement policies.

Questions
If you have any questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888- 225-7377.

Renee Ostrander, Chief
Employer Account Management Division
52 AGREEMENT BETWEEN THE CITY OF SHASTA LAKE AND JEFFREY TEDDER PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 21224 “APPOINTMENTS” AS A RETIRED ANNUITANT.

PURPOSE: This agreement shall serve as the understanding between the parties of compliance with the requirements of California Government Code (CGC) Section 21224 “APPOINTMENTS” for Jeffrey Tedder to serve as extra help as a Retired Annuitant for a limited duration of time.

SCOPE: The Parties understand that the City will be hiring Jeffrey Tedder as a retired annuitant for extra help pursuant to CGC Section 21224. This is necessary to support critical special projects in the City of Shasta Lake including xxx Project.

1. The retiree may only work a combined total of 960 hours in a fiscal year for all contracting agencies.

2. The compensation shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule for the position divided by 173.333. The maximum rate is set by the publicly available pay schedule, and the City cannot pay the retiree more than that rate as a retired annuitant.

3. The retiree shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate. The City shall only pay the retiree the hourly rate, as discussed above. As a retiree, he or she cannot receive any benefits, such as health insurance, vacation days, or personal use of a company vehicle.

4. The appointment is an exception as allowed by law, to the employment starting no sooner than 180 days after the retiree’s retirement date.

5. The appointment is an exception as allowed by law, to there being a bona fide separation of service. A bona-fide separation requires: (1) no pre-determined agreement between the employer and the member to work after retirement; and (2) there is a 60-day separation from employment. Normally, there is no exception to this requirement, but because of the Governor’s Executive Order N-25-20 declaring a state of emergency due to the COVID-19 pandemic. The suspension will remain in place until the state of emergency is lifted. Currently this scheduled to be 3/31/2022 and could be extended out further.

6. The retiree must certify in writing to the City of Shasta Lake that no unemployment insurance payments for retired annuitant work for any public employer within 12 months prior to the appointment date were received.

7. This appointment can be terminated with two weeks’ notice.

8. The City Manager deems that the appointment is necessary as the City requires specialized skills to prevent stoppage of public business. Under Section 21224, the appointment may be made by anyone with the power to hire persons for employment.

The City Manager, or designee, is making this appointment and has the authority to make such an appointment. This appointment is necessary because of his specialized skills and knowledge in design and 53 contract supervision within the City of Shasta Lake organization which are needed to complete such work in a complete and timely fashion as required by law. The period of appointment is for a limited term as necessary because the City has been awarded grants the project coordination of is in excess of what permanent employees are able to do at this time.

The forgoing statements of fact are true and correct and are acknowledged by the parties to this agreement.

Date:

Jeffrey Tedder
Jessaca Lugo, City Manager
City of Shasta Lake
54 Report and Recommendations 5.1 Reviewed and Approved

City Manager

AGENDA ITEM
City Council
February 15, 2022, Agenda
TO: Jessaca Lugo, City Manager
FROM: Peter Bird, Senior Planner

DATE: February 15, 2022
SUBJECT: Amendments to the City of Shasta Lake Municipal Code Title 17-Zoning and Title 16-Subdivisions.

FILE NO.: Z 22-01
STAFF RECOMMENDATION:

Staff recommends that the City Council consider the information provided in the staff report and open the meeting to accept public comments on the ordinance. If determined appropriate, the Council should adopt the proposed revisions to Title 16 - Subdivisions and Chapter 17.81 Affordable Housing of the City of Shasta Lake Municipal Code (SLMC).

RECOMMENDED MOTION
Staff recommends the City Council make the following motion to adopt the first reading of the proposed ordinance amendment:
“I move the City Council adopt an ordinance amending Title 16 - Subdivisions and Chapter 17.81 - Affordable Housing of the City of Shasta Lake Municipal Code (SLMC).” BACKGROUND:

Introduced by Senator Toni Atkins on December 7, 2020, and approved by Governor Gavin Newsom on September 16, 2021, Senate Bill 9 (SB9) was enacted to increase the availability of housing by allowing landowners to take advantage of the maximum development potential of their properties for single-family residential uses (SF). SB9 provides a two-pronged pathway for SF property owners to: (1) construct additional housing units, and (2) subdivide their property with a streamlined review process. The Bill requires that a local jurisdiction ministerially approve (without conditions) housing developments of two units in SF zones. It also allows the subdivision of a SF zoned parcel into two, approximately equal sized parcels (an "urban lot split") regardless of local standards for minimum lot size. Neither of the two newly created parcels may be smaller than 1,200 square feet unless the local jurisdiction allows smaller lots by ordinance. Each new lot may then be developed with two residential units.
55 SB9 is clearly a dramatic change to single-family residential zoning in the state. However, it should be noted that changes to accessory dwelling unit (ADU) law allow two units per parcel to be approved ministerially. The State has acknowledged that while SB9 was created to allow two units per parcel and increased housing production, it could dramatically increase the total number of units (see Fig 1). To address this the law allows a jurisdiction to prohibit ADUs when SB9 housing developments and urban lot splits are permitted.

Figure 1 SB9 w/ADU
To assure these units remain in the hands of homeowners, SB9 requires an applicant to sign an affidavit stating that they intend to occupy one of the housing units as their principal residence for a minimum of 3 years from the date of approval of an urban lot split. The law further stipulates that neither the owner of the parcel being subdivided, nor any person acting in concert with the owner may have previously subdivided an adjacent parcel using an “urban lot” split.

Denial of SB 9 projects is only allowed under very limited circumstances. A local Building Official may deny a two-unit housing project or urban lot split only by making a written finding that the project would have a specific adverse impact on public health and safety or the physical environment, and that there is no feasible method to mitigate or avoid such an impact. A "specific adverse impact" must be quantifiable and direct based on an objective written standard that existed at the time the project application was deemed complete.

The legislation becomes effective January 1, 2022. If the City of Shasta Lake would like to exercise the limited land use controls granted to municipalities under SB9, an ordinance must be adopted, which is the purpose of this recommended action.

DISCUSSION - POINTS OF CITY DISCRETION WHEN ADOPTING A SENATE BILL 9

ORDINANCE
Several provisions within SB9 allow the City to tailor the act to the specific needs of the community. For example, a local agency may:

1. Prohibit the construction of ADUs and Junior ADUs in conjunction with the provisions of SB 9.

2. Require a maximum of one parking space per unit.

3. Deny a proposed housing development project if the building official makes a written finding.
56 4. Allow lots smaller than 1,200 square feet.

5. Require a setback of up to four feet from the side and rear lot lines.

6. Allow complete demolition of existing structures.

7. Impose objective zoning, subdivision, and design review standards.

It is the goal of the draft ordinance to create an approval process that meets the purpose of the law while protecting the community goals for public safety to the greatest extent possible.

With these considerations in mind, the following discussion offers ordinance recommendations for the Planning Commission and City Council to consider.

Prohibit the construction of ADUs and JADUs in conjunction with the provisions of SB 9 When considering an SB9 development, a municipality may prohibit the construction of an ADU if the project includes an urban lot split. Allowing accessory units in conjunction with an SB9 project could dramatically increase density in areas of the city with insufficient infrastructure to accommodate multi-family uses. As shown in Figure 1, if ADU construction was allowed to the full extent of existing law, each existing SF parcel could be subdivided (creating two parcels) and developed to accommodate up to four housing units (two homes, one ADU, and one Junior ADU) per parcel for a total of eight new dwellings.

Allowing this level of density could overwhelm existing infrastructure and would dramatically increase emergency evacuation times. Staff recommends prohibiting all ADUs in conjunction with SB9 projects to protect the safety and wellbeing of the citizens of the City of Shasta Lake.

Require a maximum of one parking space per unit
Constructing additional units on SF parcels implicitly increases demand for parking. In many urban environments the additional need for parking may be mitigated by existing infrastructure such as streets that include curb, gutter, sidewalk (CGS), and on-street parking, adequate public transit, or multi-modal transportation options. Within the City of Shasta Lake, many city streets are not paved to a full two-lane width, nor do they include CGS or space for on-street parking.

Public transportation is provided by RABA but is not frequent enough to be a viable alternative to vehicle ownership, and multi-modal infrastructure is limited to a few on-street bike lanes. For these reasons Staff recommends the City enact the provisions of GC §65852.21(c)(1) and require one parking space per SB9 unit. Per the law, projects may be exempt from this requirement if the “parcel is located within one-half mile walking distance of either a high-quality transit corridor,” or “there is a car share vehicle located within one block of the parcel.”

Deny a proposed housing project if the building official makes a written finding Under the traditional approval process for land divisions in California, an applicant is subject to discretionary review and is responsible to mitigate any adverse impacts their project may have on the environment and existing infrastructure. Additionally, development projects would be responsible to construct any off-site improvements necessary to accommodate the project.

Typical off-site improvements can include modifications to city streets, water and wastewater facilities, and electric infrastructure.

The legislation exempts SB9 development from the California Environmental Quality Act, and further stipulates that a local agency may not require a project to complete any off-site improvements. However as mentioned previously, GC §65852.5(d) does provide a process by which the building official may deny a project if he/she makes a written finding. The determination must be based on evidence that the project would have a specific, adverse impact upon public health and safety or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the impact.
57 The Bill does not allow a local jurisdiction to condition a SB9 project to mitigate adverse impacts.

If certain conditions exist that would cause a project to be denied, the property owner could address the impacts identified in the denial finding of their own volition. For example, if the project is located at the end of a street that exceeds the dead-end road lengths described in Title 24, the applicant would have the option of improving the road or constructing an emergency access route.

The attached ordinance includes provisions that will allow the Building Official to deny SB9 development if the following conditions exist:

1. The project is served by a street that does not meet minimum design standards of the city or other responsible agencies.

2. The project is served by a street that does not meet the standards for dead end road lengths.

3. The site cannot comply with Shasta County Environmental Health standards for onsite waste disposal.

4. New structures cannot be built to (WUI) Wildland Urban Interface and/or (VHFHSZ) Very High Fire Hazard Severity Zone requirements according to current mapping -ORexisting structures cannot retrofit all roofing, exterior coverings, windows, and decking with noncombustible and ignition-resistant materials to meet performance requirements of the California Referenced Standards Code Title 24, Part 12 and retrofit openings into the building with approved ember resistant vents or similar.

5. Public utilities are not available/sufficient to serve the site and no feasible alternative exists.

6. The project would have a specific adverse impact upon the environment that cannot be mitigated without discretion/offsite improvements.

Do not allow lots smaller than 1,200 square feet
When creating an urban lot split, the developer is required to design the project so the parcel map subdivides an existing parcel to create no more than two new parcels of approximately equal lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. Additionally, the newly created parcels must be no smaller than 1,200 square feet each.

The law provides an option for municipalities to reduce the minimum lot size below 1,200 sq. feet if it so chooses. However, nearly all SF residential parcels within the City exceed 2,400 square feet in size and there is little reason to exercise this provision.

Require a setback of up to four feet from the side and rear lot lines Senate Bill 9 dictates that a municipality may allow side and rear property line setbacks of four feet or less for any unit constructed pursuant to its provisions. Staff recommends the City adopt a provision establishing a minimum four-foot setback requirement.

Allow complete demolition of existing structures
Local agencies may by ordinance allow an exception to GC §65852.21(a)(5), which states, “A proposed housing development …shall be considered ministerially…if the proposed housing development… does not allow the demolition of more than 25 percent of the existing exterior structural walls.”
A large portion of the structures within the city limits were constructed before Shasta County required building permits (1964). This has led to substandard construction that still exist and staff 58 believes allowing the complete demolition of existing structures may provide needed flexibility and the ability for property owners to completely rectify substandard construction.

Impose objective zoning, subdivision, and design review standards While SB9 does not allow discretionary review of qualifying projects, the statute authorizes the city to apply objective standards to the extent they do not preclude development allowed under SB9. Examples of standards that may be imposed include height limitations, property line setbacks, second story/balcony setbacks, and design features.

Objective standards are not included within this ordinance; however, in conjunction with the comprehensive update to the City Development Code, comprehensive objective standards will be developed that can be applied to these projects. This update process will begin after the General Plan Update has concluded.

ALTERNATIVES
Alternatives include but are not limited to the following:

1. Do not adopt the ordinance at this time.

2. Recommend that the proposed ordinance be revised to address issues identified during the public hearing. The Council should provide specific direction on the revisions.

General Plan
The proposed ordinance is consistent with the City’s General Plan by supporting the adopted goals, objectives, policies, and implementation measures including but not limited to the following:
a. POLICY-HE-1.1 Adequate Housing Sites. The City shall ensure that there are adequate sites available to meet its regional housing needs allocation of 238 units; and,
b. POLICY-HE-1.3 Infill Development. The City shall support infill residential development on underutilized or vacant infill sites to facilitate production of housing units while also prioritizing minimal displacement of existing residents.; and, c. Objective LU-6. To recognize that the major economic resources for achieving the development pattern will come from the private sector, rather than government, and that the General Plan, as the expression of community values, will guide the use of these resources; and,
d. Policy LU-n. The City's regulatory systems should accommodate new economic development and should be reviewed periodically to facilitate the development and the permitting process; and,
e. POLICY-HE-1.5 Governmental Constraints. The City shall minimize governmental constraints to the development, improvement, and maintenance of its housing stock, such as reducing setbacks, height limitations, coverage ratios, parking requirements, and other development regulations.

ATTACHMENTS
Attachment A – City Council Ordinance
59 60
Attachment A: City Council Ordinance
61 ORDINANCE NO. 2022-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPROVING MUNICIPAL CODE AMENDMENTS (Z22-01) TO TITLE 17-ZONING AND TITLE 16-

SUBDIVISIONS
WHEREAS, the General Plan of the City of Shasta Lake has been adopted to guide development in compliance with State Law; and
WHEREAS the Government Code allows the City to adopt ordinances and standards to reasonably regulate the development of property and to protect public safety and the environment consistent with the direction provided by the General Plan; and WHEREAS, on September 16, 2021, Senate Bill 9 was signed by Governor Newsom, became effective January 1, 2022, and authorizes cities to adopt local implementing ordinances; and WHEREAS, Senate Bill 9 requires a proposed housing development containing no more than two residential units on a residential lot within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain criterion; and
WHEREAS, SB 9 further requires a local agency to ministerially approve a parcel map for a lot split for a parcel in a single-family residential zone that meets certain criterion; and WHEREAS, the implementation of SB 9 without standards for the ministerial approval of development projects and urban lot splits would create a threat to the public health, safety, or welfare, and therefore the City Council wishes to adopt an ordinance that will allow for orderly development and effective implementation of SB 9.

WHEREAS, to accomplish this the City of Shasta Lake proposes to amend the Municipal Code Title 17 – Zoning and Title 16 – Subdivisions; and
WHEREAS, the Planning Commission conducted a public hearing on February 3, 2022 and considered any and all public testimony provided regarding the proposed ordinance, as well as all written materials and other information in the record and recommended the City Council approve the amendment to the municipal code.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake does hereby ordain as follows:

SECTION 1: Makes the following findings:

1. The proposed amendment would further the public necessity, convenience and general welfare. The amendment would provide citizens with opportunities to participate in the planning and decision-making processes of the City relative to the development of property. The proposed ordinance would also preserve and enhance the quality of life of residents by supporting orderly and safe development of a variety of living environments and accommodating growth.
62 2. The proposed revisions comply with the applicable Government Code requirements of the State of California as implemented by the General Plan and Municipal Code of the City.

3. The proposed amendments are consistent with the City’s General Plan by supporting the adopted goals, objectives, policies and implementation measures including but not limited to the following:
a. POLICY-HE-1.1 Adequate Housing Sites. The City shall ensure that there are adequate sites available to meet its regional housing needs allocation of 238 units; and,
b. POLICY-HE-1.3 Infill Development. The City shall support infill residential development on underutilized or vacant infill sites to facilitate production of housing units while also prioritizing minimal displacement of existing residents.; and, c. OBJECTIVE LU-6. To recognize that the major economic resources for achieving the development pattern will come from the private sector, rather than government, and that the General Plan, as the expression of community values, will guide the use of these resources; and,
d. POLICY LU-n. The City's regulatory systems should accommodate new economic development and should be reviewed periodically to facilitate the development and the permitting process; and,
e. POLICY-HE-1.5 Governmental Constraints. The City shall minimize governmental constraints to the development, improvement, and maintenance of its housing stock, such as reducing setbacks, height limitations, coverage ratios, parking requirements, and other development regulations.

SECTION 2: Severability: If any provision of this ordinance or the applications thereof to any person or circumstances is held invalid, the remainder of the ordinance and the applications of such provision will remain in effect to the extent permitted by law.

SECTION 3: Effective Date: This ordinance shall be effective thirty (30) days following its second reading and posting as provided for by City Code.

Ordinance Amendments
I. Add a new Section 16.12.100 of the City of Shasta Lake Municipal Code to read as follows:

16.12.100 Ministerial Approval of Urban Lot Splits.

A. The City Engineer shall ministerially approve a parcel map application for an urban lot split if it meets the requirements of Government Code Section 66411.7 and conforms to all applicable objective requirements. of the Subdivision Map Act (commencing with Government Code Section 66410). No public hearing shall be required.

B. The City Engineer shall require a lot split pursuant to this section to comply with objective zoning standards, objective subdivision standards, and objective design review standards applicable to the parcels created by pursuant to this Section, to the extent that such standards do not conflict with Government Code Section 66411.7.

C. Notwithstanding Paragraph A, the City Engineer may deny a lot split proposed pursuant to this Section if the Building Official makes a written finding, that the project proposed would 63 have a specific, adverse impact upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. Grounds for denial include:

1. Roads:
a. The project is served by a street that does not meet minimum design standards of the city or other responsible agencies.

b. The street that serves the project site exceeds standards for dead end road lengths.

2. Location - The project site is located within the Very High Fire Severity Zone and all structures, both existing and new, do not comply with the following standards:
a. The property shall conform to all California defensible space and vegetation management laws.
b. New structures shall be built to (WUI) Wildland Urban Interface and/or (VHFHSZ) Very High Fire Hazard Severity Zone requirements according to current mapping.

Existing structures that do not conform with WUI requirements shall retrofit all roofing, exterior coverings, windows, and decking with noncombustible and ignition-resistant materials to meet performance requirements of the California Referenced Standards Code Title 24, Part 12. All other openings into the building shall be retrofitted with approved ember resistant vents or similar.

3. Utilities:
a. The project site is in an area not served by the municipal wastewater collection system and cannot comply with applicable Shasta County Environmental Health requirements for onsite waste disposal (septic systems). b. Public utilities are not available or lack adequate capacity that is sufficient to serve the increased utility demand on the site that will result from the project.

4. Environment:
a. The project would have a specific adverse impact upon the environment that cannot be mitigated without development of offsite improvements.

D. Accessory dwelling units are prohibited after completion of an urban lot split.

II. Add a new Section 17.81.170 of the City of Shasta Lake Municipal Code to read as follows:

17.81.170 – Ministerial Approval of a Two-Unit Housing Development Within Single-Family Zone Districts
A. The Development Services Director shall ministerially approve a total of two residential units on a legally created parcel within single-family residential zoning districts if the proposed housing development meets the requirements of Government Code Section 65852.21 and complies with all objective zoning standards and objective design review standards in the Municipal Code.
64 B. Notwithstanding Paragraph A, the Development Services Director may deny a housing development project proposed under this Section if the Building Official makes a written finding that the proposed housing development project would have a specific, adverse impact upon public health and safety or the physical environment. Grounds for denial include:

1. Roads:
a. The project is served by a street that does not meet minimum design standards of the city or other responsible agencies.

b. The street that serves the project site exceeds standards for dead end road lengths.

2. Location - The project site is located within the Very High Fire Severity Zone and all structures, existing and new, and vegetation do not comply with the following standards:
a. The property shall conform to all California defensible space and vegetation management laws.
b. All New structures shall be built to (WUI) Wildland Urban Interface and/or (VHFHSZ) Very High Fire Hazard Severity Zone requirements according to current mapping. Existing structures that do not conform with WUI requirements shall retrofit all roofing, exterior coverings, windows, and decking with noncombustible and ignition-resistant materials to meet performance requirements of the California Referenced Standards Code Title 24, Part 12. All other openings into the building shall be retrofitted with approved ember resistant vents or similar.

4. Environment:
a. The project would have a specific adverse impact upon the environment that cannot be mitigated without discretion/offsite improvements.

C. Application and Fees. An application on a form made available by the City shall be completed by the applicant. The form shall be accompanied by the applicable building permit application fee. The application shall be accompanied by all technical reports, plans and information required to decide on the proposed project.

D. Construction of an accessory dwelling unit shall constitute a second unit as described in Government Code Section 65852.21.

E. Demolition – Existing structures on a project site may be completely demolished.

F. Yards - The following yard requirements apply:
65 1. Front, as described in the subject zoning district.

2. Rear and side, four feet.

G.Parking – One off-street parking space per unit shall be provided unless the project is located within one-half mile walking distance of either a high-quality transit corridor, or there is a car share vehicle located within one block of the parcel.

H. Term - Rental of any unit created pursuant to Government Code Section 65852.21 shall be for a term longer than 30 days
DULY PASSED, APPROVED, AND ADOPTED this 15th day of February, 2022 by the following vote:

AYES:

NOES:

ABSENT:
___________________________________
RICK KERN, Mayor
ATTEST:
_____________________________________________
TONI M. COATES, CMC
City Clerk
66 Report and Recommendations 6.1 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Jessaca Lugo, Jr., City Manager
FROM: Wendy Howard, Finance Director
DATE: February 7, 2022
SUBJECT: Resolution approving the Notification of Intent to Comply with SB1383 ShortLived Climate Pollutants Bill (SLCB) FILE NO: New

RECOMMENDATION:

Staff recommends adopting a resolution approving the Notification of Intent to Comply with SB1383 Short-Lived Climate Pollutants Bill (SLCB).

BACKGROUND:

The final regulations of SB1383 were approved by the Office of Administrative Law on November 3, 2020. The intent of SB1383 is to reduce short-lived climate pollutants (SLCP) that contribute to greenhouse gas emissions and air pollution resulting from decomposing organic waste, specifically food scrap waste. As defined by the legislation, the three main goals of SB1383 are:
1) Reducing organic waste disposal by 50 percent of the 2014 level by 2020; 2) Reducing organic waste disposal by 75 percent of 2014 levels by 2025, which would be more than 20-million tons; and
3) Recovering 20 percent of currently disposed of edible food for human consumption through food banks, and related human services organizations by 2025.

ANALYSIS:

SB1383 requires the City to adopt an enforceable ordinance to compel businesses and residents to recycle their organic and food waste, and comply with other requirements of the regulation, while putting the responsibility for funding, administrating, and implementing those goals on the City. The City could face penalties of up to $10,000 per day for failing to comply with SB1383 effective January 1, 2022. Recently, SB 619 was signed by the Governor allowing 67 penalty relief during calendar year 2022 as long as there is a corrective action plan in place to ensure compliance. Compliance requirements include:

1. Providing Organic Collection Services to All Residents and Businesses — Organic waste consists of, but not limited to, green waste, food waste, fibers, and wood waste. Landfills will no longer accept organic waste for disposal, and must be sent to facilities where it will be recycled in a way that prevents the release of SLCPs.

2. Reporting — Keeping appropriate records and reporting to the State on SB1383 implementation. This will include information about solid waste container inspections, violators, and food-recovery programs used by businesses that must comply with SB1383’s edible food recovery requirement.

3. Enforcement and Compliance — Container contamination must be monitored, and violators who inappropriately dispose their organic waste must be cited. The City Manager and Finance & General Services Manager attended a meeting of the Solid Waste Committee, and based on information from that, and confirmed by Shasta County and City of Redding, Shasta County will be the enforcement agency.

4. Procurement — The City will be required to meet minimum targets for procuring recycled and recovered organic products that will be based on its population size. Examples of organic products include compost, mulch, biomass derived electricity, or renewable gas. Our procurement target for 2022 (based on 1/1/2021 population estimates) is 853 tons of organic waste.

5. Education — The City will be required to conduct education and outreach on reducing organic waste.

6. Establish Edible Food Recovery Program — Required edible food generators must recover the maximum amount of edible food that would otherwise be disposed of, to instead feed people. Businesses must have a program in place to track and report this activity, and Shasta County HHSA (per the meeting noted above in #3, confirmed by Shasta County, Anderson, and City of Redding) is responsible for implementing a program to educate businesses about food recovery, generator requirements, and food recovery organizations.

On January 1, 2022, SB1383 will become enforceable, requiring the City to have a mandatory recycling ordinance in place by then, and provide an organics collection service to all residents and businesses. From 2022 to 2023, SB1383 will allow the City to take a non-punitive approach to enforcement. However, the City must begin taking punitive action against non-compliant entities starting on January 1, 2024.

Currently Waste Management (WM) is in the process of obtaining permits to build a mixed-use facility that will process food waste along with other organic waste. Currently there is no facility near enough for us to use.

The City is part of a JPA with Shasta County and the City of Anderson, and we are working together to meet theEducation and Edible Food Recovery Program requirements.

Implementation Efforts and Impact to Residents and Businesses After the new waste facility is in service, single-family residential customers will be required to food scraps into their existing green waste containers (green carts) as food waste must now be diverted from landfills and recycled.

This waste will no longer be allowed in trash containers (black carts). WM has been educating residential customers about the coming change in its newsletters. Currently, all commercial 68 customers generating two-cubic yards or more of commercial solid waste per week, and multifamily dwellings of five units or more are required to recycle their organic waste under mandatory commercial organics recycling requirements of AB 1826. Multi-family dwellings were not required to arrange for the food waste portion of mandatory commercial organics recycling.

Now they must do so under SB1383, and the legislation adds on to AB 1826 by associating SLCP reductions with organic waste disposal, and granting the California Department of Resources Recycling and Recovery (CalRecycle) the regulatory authority required to achieve the organic waste disposal reduction targets.

Contamination Monitoring and Notice of Violation
Container inspection, contamination monitoring, and enforcement are required under SB1383.

The City and WM are still developing a program to deter and inspect for container contamination which will likely include a fee for violators from the trash company. This fee would be separate, and in addition to, a Notice of Violation that the City may issue to any entity for violating any part of the ordinance after January 1, 2024.

FISCAL IMPACTS:

There is no impact on the General Fund related to the approval of the Resolution for Notification of Intent to Comply with SB1383 Short-Lived Climate Pollutants Bill (SLCB). However, there will be compliance and implementation costs required because of SB1383 that will likely be passed on to customers and the City. The full financial impact of meeting the compliance with all aspects of SB1383 will be addressed in future items that will be brought to the Council for consideration.

ATTACHMENTS:

Resolution approving the Notification of Intent to Comply with SB1383 Short-Lived Climate Pollutants Bill (SLCB)
Notification of Intent to Comply (NOIC) Form
DISTRIBUTION:

City of Shasta Lake City Council
69 RESOLUTION CC-2022-xx

A SHASTA LAKE CITY COUNCIL RESOLUTION AUTHORIZING THE SUBMITTAL OF A NOTICE OF INTENT TO COMPLY WITH SB1383 – MANDATORY ORGANICS RECYCLING

REGULATIONS
WHEREAS, CalRecycle, in consultation with the California Air Resources Board, has adopted regulatory requirements ("Regulations"), consistent with the mandate of Senate Bill 1383, that are designed to achieve the organic waste reduction goals established in Section 39730.6 of the Health and Safety Code through a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2025; and WHEREAS, the City is a local jurisdiction required to comply with the Regulations; WHEREAS, the City is or expects to be facing continuing violations of other Articles of the Regulations commencing during the 2022 calendar year; and WHEREAS, Senate Bill 619, through amendments to Section 42652.5 of the Public Resources Code ("Statute"), created a mechanism called a Notification of Intent to Comply through which a local jurisdiction may secure administrative civil penalty relief from any continuing violations of the Regulations for the 2022 calendar year and may be eligible for a broader and longer-term regulatory compliance path, including suspended administrative civil penalties, through a corrective action plan; and
WHEREAS, the City is a local jurisdiction authorized by the Statute to submit a Notification of Intent to Comply for CalRecycle approval; and
WHEREAS, CalRecycle shall approve a Notice of Intent to Comply that is duly adopted by the City by formal written resolution and meets the requirements of the Statute; and WHEREAS, the City contracts with Waste Management for waste disposal. The City is a disadvantaged community and is concerned about the financial impacts of SB1383. The City will work with CalRecycle on mitigating financial impacts.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake

1. City Council authorizes and directs the City Manager to submit the Notification of Intent to Comply, attached as Exhibit “A,” to CalRecycle by March 1, 2022, for approval pursuant to the Statute; and

2. The City Council certifies the City will implement the proposed actions to remedy the violations according to the proposed schedule as approved by CalRecycle and in accordance with the Statute and Regulations; and

3. The City Council by and through the City Manager also acknowledges and agrees to comply with any maximum compliance deadline in any corrective action plan that CalRecycle, in its sole 70 discretion, determines to be necessary and appropriate under the circumstances for the correction of any violation(s) of the Statute and Regulations identified in its Notification of Intent to Comply.

PASSED, APPROVED, AND ADOPTED this 15th day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
71 Notification of Intent to Comply
CalRecycle is providing this optional form as a convenience to assist jurisdictions (counties, cities, a county and city, or special districts providing solid waste collection services) for purposes of submitting a notification of intent to comply to CalRecycle [see Public Resources Code (PRC) section 42652.5(c)].

A jurisdiction may submit a notification of intent to comply if it is facing continuing violations of the Short-lived Climate Pollutants: Organic Waste Reductions requirements in Title 14 California Code of Regulations (14 CCR). The written notification of intent to comply, adopted by resolution of the jurisdiction’s governing body, shall be sent to CalRecycle no later than March 1, 2022, to [email protected].

A jurisdiction shall, at minimum, include the following in its notification:

1. A description, with specificity, of the continuing violations.

2. A detailed explanation of the reasons, supported by documentation, why the local jurisdiction is unable to comply.

3. A description of the impacts of the COVID-19 pandemic on compliance.

4. A description of the proposed actions the local jurisdiction will take to remedy the violations within the timelines established in 14 CCR section 18996.2 with a proposed schedule for doing so. The proposed actions shall be tailored to remedy the violations in a timely manner.

Upon approval by CalRecycle of a jurisdiction’s notification and implementation of the intent to comply, a jurisdiction may be eligible for both of the following:

1. Administrative civil penalty relief for the 2022 calendar year pursuant to PRC section 42652.5(d).

2. A corrective action plan pursuant to 14 CCR section 18996.2. a. CalRecycle may address through a corrective action plan any violations disclosed in a jurisdiction’s notification that will take more than 180 days to correct. In this situation, the proposed actions and schedule in the jurisdiction’s approved notification will be in effect until a corrective action plan is issued.

CalRecycle will respond in writing to a jurisdiction within 45 business days of receiving its notification with an approval, disapproval, request for additional information, or timeline for a decision on approval or disapproval. CalRecycle will include details about why a jurisdiction did not meet the requirements for a Notification of Intent to Comply when disapproving the jurisdiction’s notification.
72 Please clearly print or type responses. Attach additional pages as necessary.

Jurisdiction Name: County:

Person Completing the Form:

First Name: Last Name:

Title:

Mailing Address:

City: Zip Code:

Email Address:

Phone Number:

1. Select using the check boxes below or write in the continuing violations for each applicable regulatory section. For each selection, please describe the specific violations related to the regulatory section.

Example:
☒ (B) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services i. Not implementing mandatory residential foodwaste collection for all residents. Note:

City already provides mandatory greenwaste collection to all residents ii. Not implementing mandatory commercial organics collection for all businesses under 2 cubic yards. Note: City already provides mandatory commercial organics collection to all businesses 2 cubic yard or more.

Disclaimer: The list of possible continuing violations below is not inclusive of all potential violations of the regulations.
(A) 14 CCR section 18984 Combined Organic Waste Collection Services. This requirement is not included since the requirements are further specified in sections 18984.1-18984.11. (B) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services (C) 14 CCR section 18984.2 Two-Container Organic Waste Collection Services (D) 14 CCR section 18984.3 Unsegregated Single Container Collection Services (E) 14 CCR section 18984.4 Recordkeeping Requirements for Compliance with Organic Waste Collection Services
(F) 14 CCR section 18984.5 Container Contamination Minimization (G) 14 CCR section 18984.6 Recordkeeping Requirements for Container Contamination Minimization
(H) 14 CCR section 18984.7 Container Color Requirements (I) 14 CCR section 18984.8 Container Labeling Requirements (J) 14 CCR section 18984.11 Waivers Granted by a Jurisdiction (K) 14 CCR section 18985.1. Organic Waste Recovery Education and Outreach. (L) 14 CCR section 18985.2. Edible Food Recovery Education and Outreach (M) 14 CCR section 18985.3. Recordkeeping Requirements for a Jurisdiction’s Compliance with Education and Outreach Requirements
(N) 14 CCR section 18988.1. Jurisdiction Approval of Haulers and Self-Haulers (O) 14 CCR section 18988.3. Self-haulers of Organic Waste (P) 14 CCR section 18988.4. Recordkeeping Requirements for Compliance with Jurisdiction Hauler Program
(Q) 14 CCR section 18989.1. CALGreen Building Codes
(R) 14 CCR section 18989.2 Model Water Efficient Landscape Ordinance 73 City of Shasta Lake Shasta Wendy Howard Finance Director 4477 Main Street Shasta Lake 96019 [email protected] (530) 275-7400

(S) 14 CCR section 18991.1. Jurisdiction Edible Food Recovery Program (T) 14 CCR section 18991.2. Recordkeeping Requirements for Jurisdiction Edible Food Recovery Program
(U) 14 CCR section 18992.1. Organic Waste Recycling Capacity Planning (V) 14 CCR section 18992.2. Edible Food Recovery Capacity (W) 14 CCR section 18993.1. Recovered Organic Waste Product Procurement Target (X) 14 CCR section 18993.2. Recordkeeping Requirements for Recovered Organic Waste Procurement Target
(Y) 14 CCR section 18993.3. Recycled Content Paper Procurement Requirements (Z) 14 CCR section 18993.4. Recordkeeping Requirements for Recycled Content Paper Procurement
(AA) 14 CCR section 18994.2. Jurisdiction Annual Reporting Note: This requirement is not included since jurisdictions are still expected to report to CalRecycle.
(BB) 14 CCR section 18995.1. Jurisdiction Inspection Requirements Note: Section 18995.1(a)(1) should not be included because a jurisdiction should already be completing this action due to the requirements of PRC Chapter 12.9 (commencing with Section 42649.8)
(CC) 14 CCR section 18995.2. Implementation Record and Recordkeeping Requirements (DD) 14 CCR section 18995.3. Jurisdiction Investigation of Complaints of Alleged Violations Note: This requirement is not included since jurisdictions are still expected to investigate complaints.
(EE) 14 CCR section 18995.4. Enforcement by a Jurisdiction Use the check box(es) below to write in the continuing violations for any regulatory section(s) not reflected above and describe the specific violations related to the regulatory section.

Example:
☒ (1) (Type regulatory section number) (Type regulatory section title) i. Describe the specific violations related to the regulatory section (1)
(2)
(3)
(4)
(5)
74 ------------------------------ ------------------------------ ------------------------------ ----------------------------

2. A detailed explanation of the reasons why the jurisdiction is unable to comply, supported by documentation, if applicable.

3. A description of the impacts of the COVID-19 pandemic on compliance.

4. Provide a description of the proposed actions the jurisdiction will take to remedy the violations with a proposed schedule for completing each action. The proposed actions shall be tailored to remedy the violations in a timely manner. See optional format below.

I hereby certify under penalty of perjury that the information provided herein is true and correct to the best of my knowledge.

Signature Printed Name Title Date
75 Wendy Howard Finance Director
Shasta Lake is a small city and SB 1383 regulations are complicated and require us to comply on a very aggressive timeline. City staff are working to implement the regulatory requirements, however additional time is needed to meet all deadlines. Proposed dates of compliance for requested temporary waivers are provided in 4 below.

State and local restrictions on gatherings and interactions, and employee absences, as a result of COVID-19, impede timely compliance with SB 1383 regulations.

Following are proposed dates of compliance:
- December 31, 2024 for Sections 18984.1, 18984.4, 18984.5, 18984.6, 18984.11, 18985.1, 18985.2, 18985.3, 18988.1, 18988.3, 18988.4 - Not implementing mandatory residential foodwaste collection for all residents until multi-use organic waste facility constructed. Currently working to get permitted. Note: City already provides mandatory greenwaste collection to all residents. - December 31, 2022 for Sections 18991.1 and .2, 18993.3 and .4

Report and Recommendations 6.2 Reviewed and Approved

City Manager

AGENDA ITEM
City Council Meeting

TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
DATE: February 7, 2022
SUBJECT: Resolution Adopting Fiscal Year 2021-22 Mid-Year Budget FILE NO: F-200-050-xxx

RECOMMENDATION:

Staff respectfully submits for approval the fiscal year 2021-22 Mid-Year Budget for the City of Shasta Lake.

BACKGROUND:

If Council desires any further budgetary changes, a motion to amend the Mid-Year Budget would be required.

FISCAL IMPACTS:

The Mid-Year Budget revisions include revenue and expenditure changes for various funds as presented in the attached Budget Review Message.

ATTACHMENTS:
• Resolution adopting the FY 2021-22 Mid-Year Budget.
• Budget Review Message
DISTRIBUTION:
• City Council
77 RESOLUTION CC 2022-XX

A SHASTA LAKE CITY COUNCIL RESOLUTION APPROVING AND ADOPTING THE FISCAL YEAR 2021-22 MID-YEAR BUDGET.

WHEREAS, the City of Shasta Lake annually appropriates funds to conduct the business of the City, and;
WHEREAS, the City Council has reviewed the proposed Mid-Year budget revisions for the Fiscal Year 2021-22, as presented in the attached Budget Review Message.

NOW, THEREFORE, BE IT RESOLVED that the Shasta Lake City Council hereby approves and adopts the FY 2021-22 Mid-Year Budget for the City of Shasta Lake; authorizes the collection of revenues and appropriates the funds necessary to implement its policies, priorities and objectives.

PASSED, APPROVED, AND ADOPTED this 15th day of February, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
78 MEMORANDUM

TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
DATE: February 7, 2022
SUBJECT: Fiscal Year 2021-22 Mid-Year Budget Review Message The City of Shasta Lake’s (the City) budget review for the fiscal year ending June 30, 2022, is presented here and includes all of the funds the City anticipates will be received and expended for the balance of the current budget cycle. This is the second year of the City’s two-year budget. In most instances, revenue and expenditures are based on known information likely to occur, however, it is important to note that the City is reliant on many factors when making projections for the balance of this fiscal year.

The City maintains and accounts for 23 wholly separate funds. Each one of these funds includes their own revenue and expenditures and is accounted for separately. With very few exceptions, revenue collected within a fund must be expended for the operations that the fund is intended.

General Fund
General Fund Revenues
A revenue decrease of $100,000, primarily due to a reduction in the Special Business collected is included, reducing the originally budgeted General Fund revenues of $9,329,015, for a new estimate of $9,229,015.

The following table represents the projected General Fund revenue decrease to the originally approved General Fund revenue budget for fiscal year 2021-22:
79 General Fund Expenditures
The General Fund has proposed expenditure increases of $1,108,052, to the originally approved General Fund budget of $10,007,698, for a new estimate of $11,115,750.

The following table represents the recommended changes to expenditures within the City’s General Fund for the fiscal year ending June 30, 2022. The increase in the Sheriff’s contract is due to a couple of key developments: there were wage increases pursuant to new contract negotiations with deputies and management, and one vacant deputy position was dropped to create savings to offset the increase in wages. The remainder are for one-time projects, some of which were unspent in the previous fiscal year and so are being carried over.
80 81
The table below show these changes by department:

With changes and adjustments recommended by Staff, subsequently approved by the City Council, and maintaining a fiscally conservative approach, the City of Shasta Lake has continued to maintain a viable General Fund. This fiscally conservative approach entails estimating revenues low and expenditures high.

This means that in most fiscal years there are budget savings. That is the case here, and even though there are expenditure increases being proposed, and lower revenues projected than were initially budgeted, the General Fund should be in the same or better position at the end of this fiscal year than it was at the end of last fiscal year.
82 The table below shows notable changes to expenditures, including offsetting revenues, for some of the City’s other funds, as noted, for the fiscal year ending June 30, 2022:
83 Special Revenue Funds
CDBG Projects Funds
The CDBG program is a pass-through federal grant awarded from the State of California Housing and Community Development to grant small cities with a population under 50,000. This funding is released through a Notice of Funding Availability (NOFA), and is a competitive application process. CDBG funding may be used for projects such as; community service, infrastructure improvements, and housing for lowincome residents. Typical projects funded in the past include infrastructure improvements and construction of public facilities.

Revenues – The City is very active in securing Community Development Block Grant (CDBG) funding.

These grants operate on a reimbursement basis, which means it never has a cash balance available to earn interest income.

Expenditures – An increase of $326,000 in Emergency Utility Assistance related to COVID-19. Carryover from FY20/21 of $100,000 for CalHOME Deferred Loan program. An increase in DAP Loan program of $7,000, funded by program income. An increase in American Rescue Plan Act, offset by grant revenues, of $1,245,505.

Trafficway Fund
Increase of $20,000, for an emergency notification portable digital message sign.

Enterprise Funds
Electric Enterprise
Expenditures – A $75,000 increase for costs related to a new Electric Operations Building.

Internal Service Funds
Motor Pool
Expenditures –Increase of $35,000 for a Toyota Tacoma to replace old vehicle. 84 Report and Recommendations 6.3
Reviewed and Approved

City Manager

AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager

DATE: February 15, 2022
SUBJECT: Proposed Water Purchase – McConnell Foundation FILE NO.: W-100-095-050
RECOMMENDATION:

The City Manager recommends that the City Council:

Approve a resolution authorizing the City Manager to execute a contract between the City of Shasta Lake and the McConnell Foundation for the purchase of up to 300-acre feet of water at the cost of $250.00 per acre foot for the 2022 water year.

BACKGROUND:

Drought conditions continue to persist here in California. In May of 2021, the City of Shasta Lake (City) received a notice from the United States Bureau of Reclamation (USBR) announcing an emergency water allocation of 25%, which calculated to 384 acre feet (AF) of water for the remainder of the 2021 water year. In addition to the Anderson Cottonwood Irrigation District (ACID) long term water transfer (1,500 AF), the City purchased an additional 75 AF of McConnell water through the City of Redding to meet City water demand for the 2021 water year.

City staff has met with USBR personnel on several occasions to discuss the upcoming 2022 water year, and what amount of water allocation the City can expect to receive. Due to current weather patterns and low lake levels, all parties agree that the City should plan for the worst case scenario, which would be a Public Health and Safety (PH&S) water allocation of 436 AF (exhibit A). Also revealed in the discussions with USBR personnel; the State of California has the ultimate authority and can further reduce our allocation by removing the Commercial, Industrial, and Institutional (CII) use of the PH&S equation (exhibit A).

The City will receive 1,500 AF of water from ACID per its long term water transfer, however that water can only be scheduled for the months of April through October (7 months), leaving the City with 436 AF of water for the remaining 5 months. Water to supplement the City’s USBR water allocation is available at $250 per AF from the McConnell Foundation. City staff believes 300 AF of additional water should be sufficient for the 2022 water year (exhibit B, option 5 or 6). 85 FISCAL IMPACTS:

The City of Shasta Lake’s cost of BOR water for Water Year 2022 is approximately $92.68 per acre foot. The cost for ACID water for Water Year 2022 is approximately $143.46 per acre foot.

Based on this already budgeted expense, the actual increase to the budget for supplemental water is approximately $20,000.

ATTACHMENTS:

Exhibit A, PH&S water allocation calculation
Exhibit B, Water Purchase Analysis
DISTRIBUTION:

City Council
City Attorney
Water Superintendent
86 RESOLUTION CC-2022-XX
________________________________________________________________________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE AUTHORIZING THE

CITY MANAGER TO EXECUTE A CONTRACT WITH THE MCCONNELL FOUNDATION TO PURCHASE UP TO 300 ACRE FEET OF WATER FOR $250 PER ACRE FOOT WHEREAS, the City of Shasta Lake purchases water for delivery to its customers, and; WHEREAS, the McConnell Foundation has water available to the City of Shasta Lake, and; WHEREAS, the City needs to purchase supplemental water supply for the 2022 Water Year, and; WHEREAS, it is requested that the City Council authorize the City Manager to execute a contract to purchase up to 300 acre feet of water for $250 per acre foot from The McConnell Foundation, and;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHASTA LAKE, CALIFORNIA, THAT:

1. The City Council of the City of Shasta Lake hereby authorizes the City Manager to execute a contract with The McConnell Foundation to purchase of up to 300-acre feet of water for $250 per acre foot for supplemental water supply.

2. This resolution shall be in force and effect from and after its final passage, and it is so resolved.

PASSED, APPROVED, AND ADOPTED this 15th day of February 2022, by the following vote:

AYES:

NOES:

ABSENT:

RICK KERN, Mayor
ATTEST:

TONI M. COATES, CMC
City Clerk
87

Shasta Lake City CouncilFebruary 15, 2022

Shasta Lake City Council
February 15, 2022