CITY COUNCIL MEETING AGENDA March 5, 2024
CITY OF SHASTA LAKE
CITY COUNCIL
MEETING AGENDA
March 5, 2024
6:00 P.M.
Shasta Lake City Council Chambers
4488 Red Bluff Street Shasta Lake, CA 96019
Mayor: Janice Powell
Vice Mayor: Tena Eisenbeisz
Council Members: Justin Jones, Pamelyn Morgan, Greg Watkins
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 electronically before the meeting to:
[email protected]. Public comment by email will be read into the record during consideration of the item the comment addresses. Each public comment will be limited to three minutes of reading. Include the item number you are commenting on in the subject line of the email. Once the vote has taken place on an item, no additional public comments will beaccepted.
• Submit public comment by mail addressed to City Clerk, City of Shasta Lake, PO Box 777, Shasta Lake, CA 96019. Mailed comments must be received one day prior to the meeting to be included.
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Call to order (please place electronic devices on silent)
1.2 Statement for the record of Council Members present or absent
1.3 Pledge of Allegiance
1.4 Invocation
2.0 AWARDS & RECOGNITIONS:
2.1 None
3.0 PRESENTATIONS:
3.1 None
1 CITY COUNCIL MEETING AGENDA March 5, 2024
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
5.0 PUBLIC COMMENT:
This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an 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. Pursuant to The Brown Act, the City Council cannot take action on Public Comment Items.
6.0 CONSENT AGENDA:
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.
6.1 Minutes of the Special Meeting/Workshop of February 20, 2024. (pg. 5)
6.2 Minutes of the Regular Meeting of February 20, 2024. (pg. 6)
6.3 Payrolls: (pg. 11)
PE 2/17/2024 PD 2/23/2024 $154,052.36
6.4 Checks, E-payments, and wires: (pg. 12)
1/25/2024 $1,062,455.47
2/01/2024 $722,605.39
2/08/2024 $835,752.98
6.5 Resolution accepting the Quarterly Cash and Investment Report for the period ending December 31, 2023. (pg. 27)
6.6 Resolution authorizing the City Manager to distribute a “California Climate Credit” of $65.00 on City electric customers’ utility bills issued around April 2024 and December 2024, for a total credit up to $130.00, with funding from the California Cap-and-Trade Program. (pg. 33)
6.7 Resolution authorizing a contract amendment with Sharrah Dunlap Sawyer, Inc. to provide engineering and planning services for the Commercial Center Safe Routes to School project not to exceed $530,000. (pg. 37)
2 CITY COUNCIL MEETING AGENDA March 5, 2024
6.8 Review the final City of Shasta Lake Municipal Review (MSR) and Sphere of Influence (SOI) update provided by Local Agency Formation Commissions (LAFCO) (pg. 45)
6.9 Second reading of an Ordinance approving the Adoption of the Very High Fire Severity Zone. (pg. 95)
7.0 PUBLIC HEARINGS:
7.1 None
8.0 REGULAR AGENDA:
8.1 Resolution approving an application for funding not to exceed $2,500,000 and the execution of a grant agreement from the Community Development Block Grant Mitigation Resilience Infrastructure Program for the design, environmental, and construction of a raw water storage tank. (pg. 99)
8.2 Resolution accepting the Water Utility Rate Study for the Water Enterprise Fund, and authorizing staff to proceed with the Public Notification and setting a Public Hearing for the adoption of new Water Utility Rates. (pg. 105)
9.0 STAFF COMMENTS:
10.0 CITY COUNCIL COMMENTS AND 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.
ADJOURNMENT:
Meetings are broadcast on the Wednesday following the meeting at 6:00 PM and the following Friday at 2:00 PM on Charter Channel 181. Videos of meetings are also available through the City website: www.cityofshastalake.org 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). 3 4
CITY OF SHASTA LAKE
CITY COUNCIL MEETING MINUTES
MINUTES OF THE SPECIAL MEETING/WORKSHOP
HELD TUESDAY, FEBRUARY 20, 2024, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Mayor Powell convened the special meeting at 5:25 PM
1.2 Council Members present: Eisenbeisz, Jones, Morgan, Powell, Watkins
2.0 WORKSHOP
PUBLIC COMMENT for agendized items only, the City Council will allocate up to a maximum of three minutes per speaker for each agenda item.
Public Comment:
None
2.1 John Kenny Workshop on the Role of the City Attorney There was no action required for this item.
ADJOURNMENT:
Mayor Powell adjourned the Special Meeting/Workshop at 6:00 pm. ____________________________
CHARITY TATLOW
Deputy City Clerk
5 CITY OF SHASTA LAKE
CITY COUNCIL MEETING MINUTES
MINUTES OF THE REGULAR MEETING
HELD TUESDAY, FEBRUARY 20, 2024, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Mayor Powell convened the regular meeting at 6:00 PM
1.2 Council Members present: Eisenbeisz, Jones, Morgan, Powell, Watkins
1.3 Pledge of Allegiance was led by Mayor Powell
1.4 Invocation
2.0 AWARDS & RECOGNITIONS:
3.0 PRESENTATIONS:
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
4.1 Shasta Lake Fire Protection District – Quarterly Report
4.2 Shasta Lake Fire Protection District presentation on Public Protection Classification ISO Report (January 2024, effective May 1, 2024)
5.0 PUBLIC COMMENT:
Roy Vincent, Speaker.
Pat Lind, City of Shasta Lake resident.
Kay Kobe, Community Member.
Jim Marks, City of Shasta Lake resident.
Pam Morgan, City of Shasta Lake resident.
6.0 CONSENT AGENDA:
6.1 Minutes of the Regular Meeting of February 6, 2024.
6.2 Payrolls:
PE 2/3/2024 PD 2/09/2024 $154,959.91
6.3 Checks, E-payments, and wires:
1/19/2024 $1,671,817.15
6.4 Monthly Report of Investment Transactions:
6 LAIF:
January $16,882,477.94
Chandler:
January $34,838,945.48
6.5 Resolution CC 2024-11 approving a supplemental budget appropriation in the amount of $165,000 for the Water Treatment Plant (WTP) Centrifuge Addition project and award to the project to Northstate Earth and Water Inc. of Redding, CA in the amount of $475,507.00 and approve a total of $515,000.00 to allow for a contract contingency.
Motion/Vote:
Councilman Watkins requested item 6.5 be removed from the Consent Agenda, to be discussed separately.
Mayor Powell amended item 6.1 Minutes of the Regular Meeting of February 6, 2024, to include her announcement of the passing of Former Mayor, Richard Kern, after the invocation.
By motion made/seconded (Eisenbeisz/Morgan), and carried, the Consent Agenda was approved.
Motion/Vote:
City Council discussed item 6.5 of the Consent Agenda separately.
By motion made/seconded (Watkins/Morgan), and carried, item 6.5 on the Consent Agenda was approved.
7.0 PUBLIC HEARINGS:
7.1 Public Hearing for property owner protest balloting, approve the formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, confirm the Engineer’s report, assessment diagram and order of the levy and collection of assessments.
Discussion and Possible Action to Approve the Following:
1. Resolution CC-2024-XX Declaring the Results of the Property Owner Protest Ballot Proceeding Conducted for the Levy of Assessments Related to the Formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, Commencing in Fiscal Year 2023/2024; and
2. Resolution CC-2024-XX Approving the Formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, Confirming the Engineer’s Report, the Assessment Diagram, and Ordering the Levy and Collection of Assessments Commencing in Fiscal Year 2023/2024. 7 This item will be continued to the regularly scheduled City Council meeting on March 19, 2024.
Motion/Vote:
No motion was made as the item has been continued to the March 19, 2024 meeting.
7.2 Resolution CC 2024-12 for the application submittal phase for fiscal year 2023 and/or 2024 Notice of Funding Availability – State of California Department of Housing and Community Development, Community Development Block Grant General Allocation.
Public Comment:
Cheryle Yednak, Resident
Motion/Vote:
After discussion, by motion made/seconded (Eisenbeisz/Morgan), and carried, the item was approved.
7.3 Discussion and possible action on the first reading of an Ordinance adopting the Very High Fire Hazard Severity Zones within the City of Shasta Lake, pursuant to Government Code Section 51179.
Public Comment:
None
Motion/Vote:
By motion made/seconded (Eisenbeisz/Morgan), and carried, the Ordinance was read in short title only, and moved for its second reading to the next meeting.
8.0 REGULAR AGENDA:
8.1 Discussion and Possible direction on City Impact Fees following a staff presentation.
Public Comment:
Kay Kobe, Community Member
Kevin Henningfeld, Resident
Jim Mark, Resident
Cheryle Yednak, Resident
City Council Direction:
After discussion, City Council directed staff to continue with the current City Impact Fees.
No motion was required for this item.
8 9.0 STAFF COMMENTS:
Jessaca Lugo, City Manager, updated Council on the Veterans Village project.
Rick Kern's memorial service on March 1, 2024.
10.0 CITY COUNCIL COMMENTS AND REPORTS:
ADJOURNMENT:
With no further business, Mayor Powell adjourned the meeting at 8:08 pm. ____________________________
CHARITY TATLOW
Deputy City Clerk
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Report and Recommendations 6.5
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
________________________________________________
TO: Mayor and City Council Members
FROM: Wendy Howard, Finance Director
DATE: March 5, 2024
SUBJECT: CASH & INVESTMENT REPORT FOR DECEMBER 31, 2023 FILE NO.: F-200-150-015
RECOMMENDATION:
Staff submits for approval the attached Cash & Investment Report for the period ending December 31, 2023.
BACKGROUND:
Per California Government Code section 53600.5 and the City’s investment policy, the primary objectives of the City’s investment program, listed in order of priority, are safety, liquidity and return. The City’s investment policy, which complies with Code, is designed to meet the requirements of Code and ensure that the City’s funds are prudently managed.
The City’s investment policy requires that the Finance Director 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.
27 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, 2023. The source of market valuations has been quoted from documents received from the custodian bank or the institution holding 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, 2023 Cash & Investment Report Cash and Investment Notes
DISTRIBUTION:
City Council
City Manager
City of Shasta Lake Files
28 This is a summary of the City’s investments arranged by the different institutions holding the assets.
Market Date of
Bank or Institution Description Amount Interest Rate Valuation % of Portfolio Maturity Cornerstone Community Bank Checking Account $2,249,381 n/a $2,249,381 4.1313% n/a Cornerstone Community Bank Money Market Account $3,759,659 n/a $3,759,659 6.9051% n/a City of Shasta Lake Petty Cash $2,100 n/a $2,100 0.0039% n/a Wells Fargo Investments*** Investments $34,280,562 variable $34,434,528 63.2438% Varies State of California
LAIF-City $13,983,859 99.35% $13,723,609 25.2053% n/a
Shasta County Trustee
(Restricted) LAIF-County* $283,276 99.35% $278,004 0.5106% n/a Grand Total $54,558,837 $54,447,281 100%
CalPERS CERBT ** Retiree Health Benefit Trust $9,266,777 variable $9,266,777 n/a n/a CalPERS CEPPT ** Retiree Pension Benefit Trust $96,318 variable $96,318 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. ____________________________________ 31-Dec-2023
Wendy Howard Date
Finance Director
City of Shasta Lake
Analysis of Cash and Investments
December 31, 2023
29 RESOLUTION CC-2024-XX
A RESOLUTION BY THE CITY OF SHASTA LAKE CITY COUNCIL ACCEPTING THE
QUARTERLY CASH AND INVESTMENT REPORT FOR THE PERIOD ENDING DECEMBER 31, 2023
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, 2023 for review.
PASSED, APPROVED, AND ADOPTED this 5th day of March, 2024, by the following vote:
AYES:
NOES:
ABSENT:
_____
JANICE POWELL, Mayor
ATTEST:
_______________________________
CHARITY TATLOW, Deputy City Clerk
30 Cash Accounts Held at December 31, 2023
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. The Money Market account is used to facilitate liquidity. Cornerstone is paying interest at 10 bps above LAIF.
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 December 2034. 31 32
Report and Recommendations 6.6
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: James Takehara, Electric Utility Director
DATE: March 5, 2024
SUBJECT: APPROVAL TO ISSUE A “CALIFORNIA CLIMATE CREDIT” TO
ALL ELECTRIC CUSTOMERS
FILE NO.: E-090-643-148
RECOMMENDATION:
Staff recommends the City Council adopt a resolution authorizing the City Manager to distribute a “California Climate Credit” of $65.00 on City electric customers’ utility bills issued around April 2024 and December 2024, for a total credit up to $130.00, with funding from the California Cap-and-Trade Program.
BACKGROUND
In 2006, California adopted AB32, the “Global Warming Solutions Act of 2006,” which established aggressive mandates to reduce statewide emissions of greenhouse gases (GHG) through 2020. In 2016, California adopted SB32, which extended these policy mandates through 2030. Under these laws, the California Air Resources Board (CARB) established a Cap-and-Trade emissions market and comprehensive regulations that affect nearly every sector of the California economy.
Under this rule structure, the City of Shasta Lake electric utility has incurred substantial costs to comply with this State mandate, as the electric utility must buy GHG Allowances (permits to pollute) from the Cap-and-Trade market for its operational activities or to pay a premium for low- or zero-carbon power supply to avoid buying such permits to pollute.
These costs are included in the electric department budget and operating costs and are rate impacting. In recognition that the Cap-and-Trade Program could adversely affect California electric ratepayers, CARB reserved a substantial portion of the GHG auction proceeds to benefit California’s electric ratepayers through 2030. 33 The City of Shasta Lake is responsible for the administration of its allocated share of auction proceeds. The City must use the proceeds to promote the State’s policy objectives under AB32, and primarily benefit its electric ratepayers. In the past, the City distributed its auction proceeds to its electric customers in proportion to the electricity they purchased from the City. This was intended to protect electric ratepayers from rate shock caused by the sudden and substantial new costs caused by the Cap-and-Trade program.
However, CARB changed the Cap-and-Trade regulations in October 2017 expressly prohibiting this practice. Rebates are now only permissible if issued as a fixed dollar amount. The City is not required to issue rebates to all customer classes.
Staff is proposing issuance of up to $130 a climate credit per City electric customer, which exceeds the direct and indirect compliance costs from 2023. In 2023, the City’s direct compliance cost averaged about $45.00 per customer and the indirect costs (i.e., the premium for carbon-free power supply) averaged about $48.00 per customer, for a total carbon-related cost of $93.00 per customer for the year. Another proximate utility is issuing a climate credit of about $110 per customer in 2024, which will be divided into two installments of about $55 per customer.
The attached resolution would authorize the City Manager to issue two $65 climate credits, to each City electric customer, for a total up to $130, to be issued in 2024 to continue to help reduce the impact State policy has on the City’s electric ratepayers and to provide additional benefit. This proposal was supported by the Electric Committee, which met on February 20, 2024.
FISCAL IMPACT
Staff is requesting supplemental appropriations of $625,000 to account code 520-310- 5295. This amount would cover the cost of issuing the climate credits themselves and the cost of a bill insert that would accompany each credit issuance, which adds a small cost.
Staff will also announce the climate credit on City social media, which has no incremental costs. The budget request includes a contingency amount to ensure sufficient funds are authorized given that the number of City electric customers varies throughout the year.
ATTACHMENTS
Resolution CC-2024-XX
DISTRIBUTION
City Council
City Manager
Finance
34 RESOLUTION NO CC-2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
AUTHORIZING THE CITY MANAGER TO ISSUE A CALIFORNIA CLIMATE CREDIT
TO CITY OF SHASTA LAKE ELECTRIC CUSTOMERS
WHEREAS, in 2006, the State of California adopted AB 32, “The Global Warming Solutions Act of 2006,” which requires statewide emissions of greenhouse gases (GHG) be reduced to 1990 levels by 2020, and was amended in 2016 by SB 32 to further reduce GHG emission to 40% below 1990 levels by 2030; and
WHEREAS, the California Air Resources Board (CARB) has published regulations to implement AB32 and SB32, including the Cap-and-Trade Program Regulations (CA Capand-Trade Program); and WHEREAS, the City is subject to the rules and conditions established under the CA Capand-Trade Program, incurs compliance costs associated with its electric utility operations, and receives GHG pollution permits, or “Allowances,” from the State at no cost to help protect its electric ratepayers from the cost impacts of the CA Cap-and-Trade Program; and
WHEREAS, the City is required under the CA Cap-and-Trade Program to consign all allocated Allowances to the Cap-and-Trade auctions, and to use the auction proceeds to advance the policy objectives under AB32 and to benefit its electric ratepayers; and WHEREAS, one such approved use of Allowance value is to provide a direct rebate to electric ratepayers in a non-volumetric manner; and
WHEREAS, the City desires to issue a credit to all electric rate payers to help keep the community cost-neutral to the effects of AB32 and to provide additional benefit as originally envisioned under State law; and
WHEREAS, the City desires to issue a bill-credit of $65 to each City electric customer with an active electric account associated with monthly billing statements published for April 2024 and December 2024, for all City electric accounts active in the month immediately preceding bill publication.
NOW, THEREFORE, BE IT RESOLVED that the City of Shasta Lake City Council authorizes a supplemental appropriation of $625,000 to expenditure account number 520- 310-5295 and authorizes the City Manager to issue a “California Climate Credit” of $65.00, in the form of a bill-credit, on City utility bills issued for April 2024 and December 2024, for all rate classes, as described herein.
35 PASSED, APPROVED, AND ADOPTED this 5th day of March 2024, by the following vote:
AYES:
NOES:
ABSENT:
_____
JANICE POWELL, Mayor
ATTEST:
_______________________________
CHARITY TATLOW, Deputy City Clerk
36 Report and Recommendations 6.7
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Shelby Millingar, Associate Civil Engineer
DATE: March 5, 2024
SUBJECT: CONTRACT AMENDMENT WITH SHARRAH DUNLAP SAWYER, INC. FOR COMMERCIAL CENTER SAFE ROUTES TO SCHOOL
ENGINEERING & PLANNING SERVICES
FILE NO.:
RECOMMENDATION:
Staff requests that the City Council authorize a contract amendment with Sharrah Dunlap Sawyer, Inc. to provide engineering and planning services for the Commercial Center Safe Routes to School project not to exceed $530,000.00.
BACKGROUND:
The Commercial Center Safe Routes to School Engineering & Planning Professional Services project was awarded to Sharrah Dunlap Sawyer, Inc. (SDS) on October 17, 2023, via CC-2023-68 in the amount of $489,810.00 and approved an additional $20,190.00 to allow for contract contingency.
The requested increase is due to additional environmental services being required to complete the project design. Specifically, there is a drainage that crosses under Grand Avenue and continues along the roadside that is considered jurisdictional waters per the Clean Water Act. This triggers additional work needed by the environmental consultant that was not previously included in the original scope of work.
FISCAL IMPACTS:
There will be a supplemental budget appropriation in the amount of $20,000.00. This project is 100% funded on a reimbursable basis through the Affordable Housing Sustainable Communities grant, so there will be no fiscal impact to the City. The expenditure account for this project is 270-340-6271.
37 ATTACHMENTS:
Scope of Work/ Fee
DISTRIBUTION:
City Council
City Manager
Finance Department
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42 RESOLUTION CC 2024-___
__________________________________________________________________________
A RESOLUTION OF THE CITY OF SHASTA LAKE CITY COUNCIL TO APPROVE A
SUPPLEMENTAL BUDGET APPROPRIATION AND CONTRACT AMENDMENT WITH SHARRAH DUNLAP SAWYER, INC. TO PROVIDE ENGINEERING AND PLANNING
SERVICES FOR THE COMMERCIAL CENTER SAFE ROUTES TO SCHOOL PROJECT NOT TO EXCEED $530,000.00
WHEREAS, the City awarded the Commercial Center Safe Routes to School Engineering & Planning Professional Services project was awarded to SDS on October 17, 2023 via CC2023-68 in the amount of $489,810.00 and approved an additional $20,190.00 to allow for contract contingency; and
WHEREAS, Additional environmental services are required to complete design; and WHEREAS, the scope of work has exceeded the budgeted amount; and WHEREAS, this project is funded from the following capital project fund:
Expenditure Account: 270-340-6271
Revenue Account: 270-000-4347
NOW, THEREFORE BE IT RESOLVED THAT the City of Shasta Lake City Council hereby approves a supplemental budget appropriation in the amount of $20,000 for the Commercial Center Safe Routes to School Engineering & Planning Professional Services Agreement to allow for additional environmental services, bringing the total contract amount to $521,752.00 and adding a contract contingency of $8,248, a contract not to exceed $530,000.00.
PASSED, APPROVED, AND ADOPTED this 5th day of March 2024, by the following vote:
AYES:
NOES:
ABSENT:
_____
JANICE POWELL, Mayor
ATTEST:
_______________________________
CHARITY TATLOW, Deputy City Clerk
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Report and Recommendations 6.8
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
______________________________________________________________________ TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
DATE: March 5, 2024
SUBJECT: INFORMATION ITEM - CITY OF SHASTA LAKE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE UPDATE (2023)
FILE NO.: O-100-475-012
RECOMMENDATION
Staff recommends that the City Council review the final City of Shasta Lake Municipal Service Review (MSR) and Sphere of Influence (SOI) update provided by Local Agency Formation Commissions (LAFCO).
BACKGROUND
See the attached MSR/SOI report provided by George Williamson, LAFCO Executive Director.
FISCAL IMPACTS:
No Fiscal Impact
ATTACHMENTS
2023 Local Agency Formation Commission - Municipal Service Review and Sphere of Influence Update
DISTRIBUTION
City Council
45 Patrick Jones
County Member
Pamelyn Morgan
City Member
Stan Neutze
City Member
Michael Dacquisto
City Member Alternate
Vacant
Special District Member
Mary Rickert
County Member Alternate
Ronnean Lund
Special District Member
Larry Russell
Public Member
Kevin W. Crye
County Member
Fred Ryness
Special District Alternate
Michael Spencer
Public Member Alternate
George Williamson
Executive Officer
James M. Underwood
General Counsel
999 Mission De Oro Drive, Suite 106, Redding, CA 96003
Phone: 530.242.1112
[email protected]
REGULAR COMMISSION MEETING
Thursday, December 7, 2023 at 9:00 a.m.
City of Anderson - City Council Chambers 1887 Howard Street, Anderson, California AGENDA
1. CALL TO ORDER
a. Roll Call
b. Pledge of Allegiance – Stan Neutze
2. PUBLIC COMMENT
Members of the public are invited to address the Commission at this time regarding any item not scheduled for discussion as part of this agenda, and that are within the jurisdiction of LAFCO. Comments may be limited to three (3) minutes per person. No action will be taken by the Commission at this meeting as a result of items presented at this time.
3. AGENDA ADOPTION
a. Agenda* Additions/Changes
b. Business/Campaign Conflict Disclosures
*Note: Only the following additions/changes are permitted: (1) To change the order of noticed agenda items, (2) determine to continue or not consider a noticed agenda item, or (3) Discussion/Action on an item not appearing on the posted agenda if a defined statutory emergency situation is determined to exist by majority vote (GC 56954.2(b) (1) and GC 54956.5)
4. SPECIAL PRESENTATIONS
a. Staffing Transition: Proposed Executive Officer Krystle Heaney Interview – (Potential Action)
5. CONSENT CALENDAR – (Action Item)
a. October 5 Commission Meeting Minutes
b. FY 2023-24 Quarter 1 Summary & US Bank Statements
6. CORRESPONDENCE
SDRMA Letter
7. SCHEDULED PUBLIC HEARINGS – (Action Items)
a. Fall River Valley Fire Protection District Reorganization – Continued Hearing b. Shasta FPD MSR/SOI Update by Resolution 2023-10
c. City of Shasta Lake MSR/SOI Update by Resolution 2023-11 d. City of Anderson, Out of Area Water Services Extension, within SOI by Resolution 2023-12 e. FY 2023-24 Budget Amendment / Reformat by Resolution 2023-13
8. NEW BUSINESS
a. Next MSR/SOI Update Cycle: Intermountain FPDs & City of Anderson this Fiscal Year b. FY 2022-23 Audit Award - single bid received – re-issue with other LAFCOs:
c. 2024 Meeting Schedule (Informational)
46 SHASTA LAFCO
9. OLD BUSINESS
a. Staffing Services Transition Plan (Potential Action) b. Special District Member – Seat 1 & Alternate Voting Results (Informational) c. Annual Apportionments: Commission determination of appropriate outstanding invoice collection (Potential Action)
d. Planwest Partners September & October 2023 Invoices (Potential Action) e. Executive Committee Appointments for 2024 (Potential Action)
10. EXECUTIVE OFFICER REPORT (Informational)
11. CLOSED SESSION
None
12. COMMISSIONER ANNOUNCEMENTS (Informational)
13. STAFF ANNOUNCEMENTS
a. Next Regular Meeting is scheduled for Thursday, February 1, 2024 at 9:00 a.m. at the Shasta County Board of Supervisors Chambers, 1450 Court Street, Redding, California.
14. ADJOURNMENT
47 Patrick Jones
County Member
Pamelyn Morgan
City Member
Stan Neutze
City Member Alternate
Mark Dacquisto
City Member Alternate
Vacant
Special District Member
Mary Rickert
County Member Alternate
Ronnean Lund
Special District Member
Larry Russell
Public Member
Kevin Crye
County Member
Fred Ryness
Special District Alternate
Michael Spenser
Public Member Alternate
George Williamson
Executive Officer
James M. Underwood
General Counsel
999 Mission De Oro Drive, Suite 106, Redding, CA 96003
Phone: 530.242.1112
[email protected]
Agenda Items: 7.c
Meeting Date: December 7, 2023
From: George Williamson Executive Officer
Subject: City of Shasta Lake
Municipal Service Review and Sphere of Influence Update Two Hearings: CEQA Exemption
City of Shasta Lake Municipal Service Review and Sphere of Influence Update
Background:
The City of Shasta Lake provides a full range of municipal services to the residents of the City including water, wastewater, stormwater, electricity, animal control, streets maintenance and circulation planning, parks and recreation services, law enforcement, and emergency management. The City operates as a General Law City and operates under the general laws of the state, not under a separate charter. The City is governed by a five-member City Council.
The City was incorporated under California’s Chapter 2 Classification law (Government Code §34102) in July 1993. The City encompasses approximately 6,930 acres and has an estimated population of 10,423.
DISCUSSION
A City Draft MSR/SOI Update was reviewed and discussed by the City Manager. Edits were incorporated into the Draft prior to a second round of review by the City Manager. Final edits were addressed and incorporated in this Commission Draft.
The MSR/SOI Update includes the following MSR determinations:
a) Growth and population projections for the affected area. The estimated 2021 City population was 10,423.
Based on housing and population projections from the City’s General Plan 2040, there could be an additional population of 2,083 and 837 additional housing units by 2040. b) The location of any disadvantaged unincorporated communities. Shasta County had a 2021 MHI of $48,257 which is 61% of the California MHI and qualifies the County as a disadvantaged area. As such, it is likely that DUCs exist adjacent to the City boundary and should be considered carefully prior to any annexations.
c) Present and planned capacity of public facilities and adequacy of public services. The City has 3,549 water service connections and is using approximately 60% of its water supply. The City has 3,800 wastewater connections and an average dry weather flow of 0.58 million gallons per day in 2023. The City also provides electric, animal control, stormwater conveyance, street maintenance, planning, and parks and recreation services to Shasta Lake residents.
48 SHASTA LAFCO
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2 of 2
d) Financing ability of agencies to provide services. The City provides regular audits and adopts a biennial budget. Its net position has increased by 18.6% over the five-year review period, from $112.3 million to $133.2 million.
e) Status of and, opportunities for, shared facilities. Shasta Lake FPD offers fire services, and the Shasta County Sheriff’s Office contracts with the City to provide law enforcement services to Shasta Lake residents. The City of Redding and the City of Shasta Lake have a partnership to provide recreational services and programs.
f) Accountability for community service needs. The City is governed by a five-member council elected to staggered four-year terms. Meetings are held twice a month and agendas are posted to the City’s website in accordance with the Brown Act. The City maintains a website with service and financial information in compliance with SB929.
g) Any other matter related to effective or efficient service delivery. LAFCO has reviewed its local policies and there are no other pertinent matters to be discussed.
There are no proposed changes to the City’s SOI at this time. The existing SOI is reaffirmed.
The recommended determinations in this section and MSR information provide support for the adoption of this MSR/SOI update.
RECOMMENDATION
Staff recommends the Commission:
Receive verbal report from staff;
Open the CEQA Exemption public hearing and read testimony; and Discuss item, and consider CEQA Exemption recommendation:
Receive verbal report from staff;
Open the MSR and SOI Update public hearing and read testimony; and Discuss item, and approve both hearing items by Resolution 2023-11 Attachments
CEQA Notice of Exemption
City of Shasta Lake MSR and SOI Update
Resolution 2023-11 MSR and SOI Update
49 Les Baugh
County Member
Larry Farr
City Member
Stan Neutze
City Member
Michael Dacquisto
City Member Alternate
Vacant
Special District Member
Mary Rickert
County Member Alternate
Brenda Haynes
Special District Member
Larry Russell
Public Member
Joe Chimenti
County Member
Fred Ryness
Special District Alternate
Katharine Ann Campbell
Public Member Alternate
George Williamson
Executive Officer
James M. Underwood
General Counsel
999 Mission De Oro Drive, Suite 106, Redding, CA 96003
Phone: 530.242.1112
[email protected]
California Environmental Quality Act
Notice of Exemption
To: Leslie Morgan From: George Williamson, Executive Officer Shasta County Clerk Recorder Shasta Local Agency Formation Commission 1643 Market St. 999 Mission Del Oro Drive, Suite 106
Redding, CA 96001 Redding, CA 96003
Project Title: City of Shasta Lake Municipal Service Review (MSR) & Sphere of Influence (SOI) Update Project Summary: The Shasta Local Agency Formation Commission (LAFCO) has prepared materials for updating the City of Shasta Lake’s Municipal Service Review and Sphere of Influence.
The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act) requires that LAFCOs conduct periodic reviews for cities & special districts (Government Code § 56425). This Update provides LAFCO with a tool to study current & future public service conditions comprehensively & evaluate organizational options for accommodating growth, preventing urban sprawl, & ensuring that critical services are provided efficiently. This Update is for Shasta LAFCO’s use in conducting a statutorily required MSR review process.
Public Agency Approving Project: Shasta LAFCO. The Update adoption hearing date: December 7, 2023.
Pertinent California Environmental Quality Act (CEQA) Exemptions: The purpose of the environmental review process is to provide information about the environmental effects of the actions and decisions made by LAFCO and to comply with the CEQA Guidelines found in Public Resources Code § 210000 et seq. It has been determined that this project is statutorily exempt from CEQA pursuant to § 15262 – Feasibilities & Planning Studies and categorically exempt pursuant to § 15306 – Information Collection.
Rationale for Exemption: The Update is an activity that will not bring about any physical changes to the environment. The adoption of the Update does not involve, authorize, or permit the siting or construction of any facilities.
Contact: George Williamson, Executive Officer
Shasta Local Agency Formation Commission
Date: December 7, 2023 Signature: _____________________ 50 Shasta Local Agency Formation Commission
Municipal Service Review & Sphere of
Influence Update
City of Shasta Lake
Commission Review Draft
December 2023
51 SHASTA LOCAL AGENCY FORMATION COMMISSION
Commissioners
Patrick Jones, County Member - District 5 Supervisor
Kevin Crye, County Member & Vice Chair - District 1 Supervisor Stan Neutze, City Member - City of Anderson
Pamelyn Morgan, City Member – City of Shasta Lake
Ronnean Lund, Special District Member – Anderson Cottonwood Irrigation District Irwin Fust, Special District Member & Chair - Clear Creek Community Services District Larry Russell, Public Member
Alternate Members
Mary Rickert, County Member - District 3 Supervisor
Mike Dacquisto, City Member - City of Redding
Fred Ryness, Special District Member – Burney Water District Michael Spencer, Public Member
Shasta LAFCO Staff
George Williamson, AICP, Executive Officer
James M. Underwood, Legal Counsel
Planwest Partners Staff
Jason Barnes, GIS Analyst
Krystle Heaney, AICP Senior Planner
Amber Chung, Planning Technician
Acknowledgements:
LAFCO staff would like to thank contributors to this Municipal Service Review. Input instrumental in completing this report was provided by City Manager Jessaca Lugo and her staff.
52 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 2 Commission Draft – December 2023
Table of Contents
MUNICIPAL SERVICE REVIEW ....................................................................................................... 1 SPHERE OF INFLUENCE UPDATE.................................................................................................... 1 Introduction............................................................................................................................................... 1 City Overview........................................................................................................................................... 1 Service Review Determinations........................................................................................................... 1 Sphere of Influence Determinations.................................................................................................. 2 Uses of the Report................................................................................................................................... 2 Review Methods...................................................................................................................................... 3 California Environmental Quality Act................................................................................................ 3 Common Agency Profile Topics ......................................................................................................... 3 AGENCY PROFILE ......................................................................................................................... 5 Formation................................................................................................................................................... 5 City Boundary and Sphere................................................................................................................... 5 City Government..................................................................................................................................... 7 Annexations and Detachments since last MSR.............................................................................. 7 Other Service Providers.......................................................................................................................... 7 Existing and Planned Land Uses.......................................................................................................... 8 Growth and Population....................................................................................................................... 10 Disadvantaged Communities ........................................................................................................... 10 Municipal Services ................................................................................................................................ 12 Financial Overview ............................................................................................................................... 25 MUNICIPAL SERVICE REVIEW DETERMINATIONS .......................................................................35 SPHERE OF INFLUENCE DETERMINATIONS..................................................................................36 53 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 3 Commission Draft – December 2023
Figures
Figure 1: City Boundary and Sphere of Influence............................................................................. 6 Figure 2: City Land Uses, from General Plan ................................................................................... 11 Figure 3: City Natural Resources and-Flood Zones ......................................................................... 15 Figure 4: Public Facilities, Parks and Recreation ............................................................................. 20 Figure 5: Fire Risk, Wildfire Protection-Responsibility Areas............................................................. 23 Tables
Table 1: City of Shasta Lake Overview Summary.............................................................................. 5 Table 2: City of Shasta Lake Mayor and City Council...................................................................... 7 Table 3: City of Shasta Lake Land Use Acreage............................................................................... 9 Table 4: City of Shasta Lake Budgets............................................................................................... 26 Table 5: City of Shasta Lake Budgeted General Fund Revenues.................................................. 27 Table 6: City of Shasta Lake Budgeted General Fund Expenses................................................... 27 Table 7: City of Shasta Lake Budgeted Revenues by Fund Type .................................................. 28 Table 8: City of Shasta Lake Budgeted Expenses by Fund Type ................................................... 28 Table 9: City of Shasta Lake Actual Revenues................................................................................ 28 Table 10: City of Shasta Lake Actual Expenditures......................................................................... 29 Table 11: City of Shasta Lake Operating Margin ............................................................................ 29 Table 12: City of Shasta Lake Total Margin...................................................................................... 29 Table 13: City of Shasta Lake Five-Year Study Period..................................................................... 30 Table 14: City of Shasta Lake Assets: Current & Non-Current ........................................................ 31 Table 15: City of Shasta Lake Liabilities: Current & Non-Current................................................... 32 Table 16: City of Shasta Lake Net Position....................................................................................... 32 54 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 1 Commission Draft – December 2023
MUNICIPAL SERVICE REVIEW
SPHERE OF INFLUENCE UPDATE
Introduction
Municipal Services Reviews (MSRs) provide agency infrastructure, management, services, and boundary information. The report is for Shasta Local Agency Formation Commission’s (LAFCO) use in conducting a statutorily required MSR review process. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act) requires that the Commission conduct periodic reviews for cities & special districts in Shasta County (Government Code § 56425).
State law also requires that, prior to Sphere of Influence (SOI) adoption, LAFCO must conduct a review of municipal services provided by that local agency (Government Code §56430). This report provides LAFCO with a tool to study current & future public service conditions comprehensively & evaluate organizational options for accommodating growth, preventing urban sprawl, & ensuring that critical services are provided efficiently.
City Overview
Cities are incorporated under California’s Chapter 2 Classification Law (Government Code §34102). They can provide a full range of municipal services including water, wastewater, solid waste disposal, fire protection services, parks and recreation, street maintenance, and other services. The City’s Planning area extends approximately 9,469 acres with about 6,930 acres in the City Limits and 2,539 acres within the SOI.
Service Review Determinations
Government Code §56430 requires LAFCO to conduct a review of municipal services provided in the county by region, sub-region or other designated geographic area, as appropriate, for the service or services to be reviewed, and prepare a written statement of determination with respect to each of the following topics:
1) Growth and population projections for the affected area; 2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the SOI;
3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies (including needs or deficiencies related to sewers, municipal and industrial water, in any disadvantaged, unincorporated communities within or contiguous to the SOI)
4) Financial ability of agencies to provide services;
5) Status of, and opportunities for, shared facilities; 6) Accountability for community service needs, including governmental structure and operational efficiencies; and
7) Any other matter affecting or related to effective or efficient service delivery, as required by Commission policy.
55 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 2 Commission Draft – December 2023
This service review provides an overview of the City along with an agency profile. The report also includes service review determinations and sphere of influence recommendations for:
City of Shasta Lake
State Guidelines and Commission policies encourage stakeholder cooperation in the municipal service review preparation. It also provides a basis to evaluate, and make changes to the Spheres of Influence, if appropriate.
Sphere of Influence Determinations
A SOI is a LAFCO-approved boundary that designates an agency’s probable physical service area. Spheres are planning tools used to provide guidance for individual boundary change proposals and are intended to encourage efficient provision of organized community services, discourage urban sprawl and premature conversion of agricultural and open space lands, and prevent overlapping jurisdictions and duplication of services.
LAFCO is required to establish SOIs for all local agencies and enact policies to promote the logical and orderly development of areas within the SOIs. Furthermore, LAFCO must update those SOIs every five years. In updating the SOI, LAFCO is required to conduct a MSR and adopt related determinations. In addition, in adopting or amending an SOI, LAFCO must make the following determinations:
1) Present and planned area land uses, including agricultural and open-space lands; 2) Present and probable need for public facilities and services in the area; 3) Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide;
4) Existence of any social or economic communities of interest in the area if the Commission determines that they are relevant to the agency; and
5) Present and probable need for public facilities and services related to sewers, municipal or industrial water, or structural fire protection of any disadvantaged unincorporated communities in the existing SOI (effective July 1, 2012).
Uses of the Report
This service review provides the opportunity to identify trends relating to the adequacy, capacity, and cost of providing services in rural areas of Shasta County. Service reviews may identify district boundary changes, where appropriate, to extend services; evaluate consolidation feasibility, where appropriate, and implement other measures to address community water and wastewater service needs. The potential uses of this report are described below.
To Update Spheres of Influence
This MSR serves as the basis for an SOI update which considers territory LAFCO believes represents an agency’s appropriate future jurisdiction and service area. All boundary changes, such as annexations, must be consistent with an affected agency’s SOI with limited exceptions. 56 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 3 Commission Draft – December 2023
To Consider Jurisdictional Boundary Changes
LAFCO is not required to initiate any boundary changes based on service reviews. However, LAFCO, other local agencies (including cities, special districts, or the County), or the public may subsequently use this report together with additional research and analysis, where necessary, to pursue changes in jurisdictional boundaries.
Resource for Further Studies
Other entities and the public may use this report for further study and analysis of issues relating to the City and municipal services in Shasta County.
Review Methods
The following information was considered in the service review:
o Agency-specific data: responses to LAFCO Requests for Information from City of Shasta Lake, maps, district plans and agency correspondence;
o Land Use and Shasta County General Plan data: Shasta County Resource Management –Planning Division;
o Demographic data: U.S. Census; CA Department of Finance; CA Water Resources Board; o Finances: budgets, rates and fees; and
o Other Reports and Assessments: State Water Resources Control Board citation.
Information gathered was analyzed and applied to make the required determinations for the agency and reach conclusions about the focus issues identified in the service review. All information gathered for this report is filed by LAFCO for future reference.
California Environmental Quality Act
The California Environmental Quality Act (CEQA) is contained in Public Resources Code §21000 et seq. Under this law, public agencies are required to evaluate the potential environmental effects of their actions. MSRs are statutorily exempt from CEQA pursuant to §15262 (feasibility or planning studies) and categorically exempt pursuant to CEQA Guidelines §15306 (information collection). It should be noted that when LAFCO acts to update an SOI, CEQA requirements must be satisfied. The lead agency for CEQA compliance would most likely be LAFCO.
Common Agency Profile Topics
Several topics are evaluated in an agency profile. Those topics are defined in this section and discussed further in the agency profile.
Disadvantaged Unincorporated Communities
LAFCO is required to evaluate disadvantaged unincorporated communities (DUCs) as part of its municipal service review process. Per California Senate Bill 244, a DUC is defined as any area with 12 or more registered voters where the median household income (MHI) is less than 80 percent of the statewide MHI. Within a DUC, three basic services are evaluated: water, sewer and fire protection.
The most recently available data for US Census Block Groups, Tracts and Places from the US Census American Community Survey (ACS) 5-Year Data is used to determine disadvantaged communities in the region of interest. Using this information, each district or agency is evaluated to determine whether it is a DUC, or in the case of cities, whether there are DUCs within the city’s 57 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 4 Commission Draft – December 2023
SOI. In many cases, Census Block Groups are larger than Districts. In these cases, LAFCO’s evaluation was conducted with an abundance of caution to ensure no DUCs are overlooked.
City Growth Projections
Local governments can prepare for future growth with actions that protect the residents’ health and safety. The City of Shasta Lake has a Compound Annual Growth Rate (CAGR) of 0.9%. This is an increase in population of 104 annually. The 20-year projection estimates a population increase of 2,083. The City experienced the most rapid growth in the early 2000’s, with 2002 to 2003 being the fastest at a 3.8 percent average annual growth rate.
According to the most recent California Department of Finance estimate, the Shasta County population decreased by 0.1% from 2018 to 2019. This could be the result of recent wildfires.
Although, the Department of Finance projects the County’s population will increase from 179,412 to 188,154, between 2020 and 2030, an average annual growth rate of 0.49%.
Governance and Accountability
The city of Shasta Lake operates as a General Law City. General Law Cities are those who operate under the general laws of the state. They do not have their own charter. The City is governed by a five-member City Council that is elected by the residents of Shasta Lake. 58 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 5 Commission Draft – December 2023
AGENCY PROFILE
This section profiles the City listed below. Included in the profile is a description of the agency’s organizational development, tables listing key service information, and maps showing jurisdictional boundaries.
City of Shasta Lake
City of Shasta Lake
The City of Shasta Lake serves the community of Shasta Lake, north of the City of Redding.
Table 1: City of Shasta Lake Overview Summary
Primary Contact Jessaca Lugo, City Manager
Address: 4477 Main Street Shasta Lake, CA 96019
Website https://www.cityofshastalake.org/
Services Provided
Water, Wastewater, Stormwater, Electric, Animal Control, Streets, Parks and Recreation Services, Law Enforcement, and
Emergency Management
Population Served: 10,423 (2021) Service Area Size: 10.93 sq. mi /6,930 acres Formation
The City of Shasta Lake was incorporated in July of 1993 and encompassed approximately 10.9 square miles. The City was created to provide area inhabitants with water, sewer, and electric services.
City Boundary and Sphere
The City boundary is shown in Figure 1.
The City of Shasta Lake size:
o City of Shasta Lake Boundary - 6,930 acres
o City of Shasta Lake Boundary and SOI - 9,469 acres
o City of Shasta Lake SOI only (outside district) - 2,539 acres 59 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 6 Commission Draft – December 2023
Figure 1: City Boundary and Sphere of Influence
60 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 7 Commission Draft – December 2023
City Government
The City of Shasta Lake is governed by a five-person council elected to staggered 4-year terms (Table 2). Meetings are held every first and third Thursday of the month at 6pm at the Council Chambers located at 4488 Red Bluff Street. The City maintains a website (https://cityofshastalake.org/). Meeting agendas are available at least 72 hours in advance and meeting minutes are available after adoption on the website. Meeting agendas are also available at two local post offices, as well as posted at City Hall.
Table 2: City of Shasta Lake Mayor and City Council
Member Title Current Term Expiration
Greg Watkins Mayor December 2024
Janice Powell Vice Mayor December 2024
Justin Jones Council Member December 2026
Pamelyn Morgan Council Member December 2026
Tena Eisenbeisz Council Member December 2024
Annexations and Detachments since last MSR
None
Other Service Providers
Shasta Lake Fire Protection District
The Shasta lake Fire Protection District (SLFPD) provides fire protection, fire prevention, and emergency medical services to the City and one square mile east of the City in unincorporated Shasta County. The SLFPD was created in September of 1940 to provide fire services to the area.
Currently, the SLFPD employs nine full-time professionals and one admin clerk. The District relies on volunteers to help respond to calls and provide fire protection. They provide 24 hour a day coverage of the City of Shasta Lake and the surrounding areas. The SLFPD responds to approximately 1,500 incidents a year. The SLFPD has three fire stations and personnel and equipment in City limits.
Shasta County Office of Emergency Services
The Shasta County Office of Emergency Services (OES) coordinates with local agencies and jurisdictions, along with state and federal agencies, to prepare for, respond to, and recover from emergencies and disasters. Their office is located south of the City in Redding, CA. OES must maintain and update the Shasta County Emergency Operation Plan. This acts as a guide to ensure optimum flexibility during emergencies and is the county’s all-hazards plan. The City participates and uses the County’s plan, as well as the Emergency Alert System to transmit emergency information to the public.
The Shasta County OES maintains the Emergency Operation Center (EOC). From there, emergency incident responses are coordinated and supported. The main responsibility of maintaining the EOC is to keep staff trained and ready to respond quickly and efficiently in the event of an emergency.
The Shasta County OES assists local agencies in emergency preparedness plans and disaster training. The City is in Office of Emergency Services Region III as part of the Shasta Operational Area. This is the region where they request aid. The Shasta County OES is the Law Enforcement Mutual Aid Coordinator for Region III and gives technical advice and assistance to the Sheriff’s 61 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 8 Commission Draft – December 2023
Office on local emergency declarations. They can work directly with the California Governor’s Office of Emergency Services in order to obtain Presidential proclamations for major incidents.
Shasta Mosquito Abatement Vector Control District
The Shasta Mosquito Abatement Vector Control District (SMVCD) extends from the northern Shasta County boundary to the southern Shasta County boundary, covering about a third of the County. It encapsulates the areas of Lakehead, Mountain Gate, Shasta Lake, French Gulch, Bella Vista, Keswick, Redding, Millville, Palo Cedro, Anderson, Cottonwood, and Shingletown.
The SMVCD monitors and controls mosquito populations by focusing on juvenile populations where they are most concentrated and easier to abate through physical, biological, and chemical methods. The SMVCD handles adult mosquito control activities and monitors for other vectors, including ticks and rodents.
Telecommunications and Broadband Providers
The City of Shasta Lake has a number of broadband providers with home services, including specialized server message block (smb), enterprise, mobile, and line-of-sight providers.
Broadband is available throughout most of the City and several small areas are eligible for the California Advanced Services Fund (CASF) infrastructure grants. These grants are for telephone corporations to help bring service to unserved or underserved areas.
Solid Waste & Recycling Contractors
Solid waste and recycling services are provided by a private entity, Waste Management. Solid waste is flow controlled to the West Central Landfill, located in unincorporated Shasta County southwest of Redding. The facility provides solid waste disposal, recycling, and green waste collection. Municipal residential waste is accepted at the Buckeye Transfer station located in the City of Shasta Lake. The transfer station is owned by Shasta County and operated by Waste Management.
Existing and Planned Land Uses
Land Use
City General Plan 2040 land use designations include:
Rural Residential B (RB), Rural Residential A (RA),
Suburban Residential (SR), Urban Residential (UR),
Urban Residential High (URH), Mixed Use (MU),
Village Mixed Use (VMU), Commercial (C),
Industrial (I), Industrial Light (IL),
Public Facilities (PF), Parks (or improved Open Space) (P), Open Space (OS).
62 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 9 Commission Draft – December 2023
Table 3: City of Shasta Lake Land Use Acreage
Land Use Code Sum of Acres
Commercial C 118.9
Industrial I 725.3
Industrial Light IL 67.2
Mixed Use MU 884.2
Community Park NP 164.5
Open Space OS 113.9
Public Facilities PF 344.1
Rural Residential A RA 351.2
Rural Residential B RB 701.2
Rural Residential B RB (USA) 71.6
Suburban Residential SR 1426.3
Urban Residential UR 1136.3
Urban Residential High URH 0.2
Urban Residential High A URH-A 5.4
Urban Residential High B URH-B 96.9
Village Mixed Use VMU 37.4
Grand Total 6244.7
The City’s zoning includes Rural Residential (R-R), Interim Residential (I-R), One-Family Residential (R-1), One-Family Mobile Home (R-M), Two-Family Residential (R-2), Multiple-Family Residential (R-3), Multiple-Family Residential – Office (R-4), Mobile Home (T), Mobile Home Park (MHP), City Center Commercial (CC), Village Commercial (VC), Mixed Use (MU), Local Convenience Center (C-1), and Community Commercial (C-2).
City Land Use Diagram shown in Figure 2.
Zoning
Base Zoning in the City is varied with Rural Residential (R-R), Interim Residential (I-R), One-Family Residential (R-1), One-Family Mobile Home (R-M), Two-Family Residential (R-2), Multiple-Family Residential (R-3), Multiple-Family Residential – Office (R-4), Mobile Home (T), Mobile Home Park (MHP), City Center Commercial (CC), Village Commercial (VC), Mixed Use (MU), Local Convenience Center (C-1), Mineral Resource (MR), commercial Recreation (C-R), CommercialLight Industrial (C-M), Light Industrial (M-L), General Industrial (M), Public Facilities (PF), and Community Commercial (C-2).
The City is operating under an interim zoning ordinance that provides consistency with the updated 2040 General Plan. The Interim Zoning Ordinance will be in effect until the City completes the comprehensive development code update. Interim zoning districts match the General Plan Land use designations.
Land Use Planning
The Planning Division helps with current and long-range planning in the City. They review all land use proposals and ensure compliance with state and local regulations, such as with the City’s General Plan, Housing Element, California Subdivision Map Act, and the California Environmental Quality Act. The Planning and Zoning Divisions lead the implementation of the goals, objectives, and policies of the City as adopted by the City Council. 63 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 10 Commission Draft – December 2023
The General Plan, Interim Zoning Ordinance, and base Zoning districts regulate land uses in the City. The City’s parcels are assigned a zone district that describes allowable land uses within that zone, land use permit requirements, and site development standards pertaining to setbacks, maximum structural height, landscaping, lighting, parking, and signs.
Growth and Population
The City’s 2021 population estimate was 10,423. The City General Plan Update 2040 includes 20- year unit and population projections. As shown in General Plan 2040 Table 2-2 an additional 837 units, and an additional population of 2,083 is projected. The population is estimated by calculation of 2.49 persons per housing unit (US Census Bureau, Shasta County 2019).
Disadvantaged Communities
The Shasta County 2021 Median Household Income (MHI) was approximately $48,257 (US Census Bureau, Table S1901 Income in the Past 12 Months (in 2020 Inflation-Adjusted Dollars). This is 61% of the California 2020 MHI of $78,672. The City is therefore considered to be a disadvantaged community and it is likely that residential areas within and adjacent to the City’s boundary and SOI may also qualify as Disadvantaged Unincorporated Communities (DUCs).
The City of Shasta Lake is a Census Designated Place (CDP). The boundary encompasses the entirety of the City. The southeastern corner of Shasta Lake’s CDP boundary borders the northern CDP boundary of the City of Redding.
64 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 11 Commission Draft – December 2023
Figure 2: City Land Uses, from General Plan
65 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 12 Commission Draft – December 2023
Municipal Services
City of Shasta Lake provides water, wastewater, stormwater, electric, animal control, circulation planning and street maintenance, parks and recreation services, law enforcement, and emergency management services to the Shasta Lake community and surrounding area within the City Boundary. There are also rental and utility payment assistance programs for many of the services provided by the City.
Water Services
The City provides clean safe drinking water to the City of Shasta Lake, as well as a small portion of the City of Redding in their Buckeye service area and adequate fire flows for residential, commercial and industrial use.
Water Supply
The City water supply is received from diverted surface water from Shasta Lake. There are two sets of intakes that draw water from the face of the dam. The City receives raw water to their Fisherman’s Point Water Treatment Plant (WTP) via a Raw Water Pumping Station (RWPS) and transmission line owned and operated by the U.S. Bureau of Reclamation (USBR) located at the base of Shasta Dam. The City of Shasta Lake has the following long-term water contracts: 4,480 Acre-Feet (AF) via a Central Valley Project (CVP) contract with USBR; and 2,000 AF via a transfer agreement with the Anderson Cottonwood Irrigation District (ACID). They have emergency interties with Bella Vista Water District and the City of Redding.
Currently, the City uses approximately 60% of their CVP allocation of 4,480 AF. During low precipitation years, the allocation can be drastically reduced, dependent on USBR’s water supply projections. In 2008, the City negotiated a 40-year take-or-pay water transfer with ACID in an attempt to ensure a long-term supply solution and provide drought protection.
Before the City’s incorporation, the Shasta Dam Area Public Utilities District (PUD) had a CVP contract with USBR for an unknown amount of water being administered from SCWA. Once incorporated, a portion of the PUD contract was allocated to the City as a shortage supply at first and later as a direct transfer. The City has added this contract into the larger City CVP contract on a permanent basis.
Storage and Infrastructure
The City’s water system has eight active treated water reservoirs at six different locations. The City has 5.7 million gallons (MG) of storage capacity and one active raw water reservoir totaling
0.17 MG. The City’s storage reservoirs are all ground-level reservoirs that range in volume from
0.17 to 2.9 MG each.
Storage tank 1 named Picard was built in 1948 and has a volume of 0.2 MG. The storage tank number 2 named Rouge was built in 1953 and has a volume of 0.2 MG. The 3A storage tank named Shasta Way A was built in 1954 and had a volume of 0.2 MG. The storage tank numbered 4A and named Montana A was built in 2006 with a volume of 2.9 MG. Storage tank 4B named Montana B was built in 1978 and has a volume of 1 MG. Storage tank 5 named Toyon was built in 1971 with volume of 0.6 MG. Finished Tank 1, or FW 1, was constructed in 1942 and has a volume of 0.20 MG. Finished Tank 2, or FW 2, was built in 1948 and has a volume of 0.30 MG.
The distribution system has approximately 79 miles of pipeline that range from 1 inch to 24 inches.
The Raw Water Pump Station (RWPS) has five pumping units: two 125 horsepower (HP) pumps, one 200 HP pump, one 350 HP pump, and one 400 HP pump. It is currently undergoing design review by USBR for installing upgrades in the next several years. 66 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 13 Commission Draft – December 2023
From two sets of intakes located at 750 feet and 950 feet within Shasta Dam, raw water is pumped through a single 16 inch raw water transmission line up the hill to the City’s Raw Water Tank and treatment plant. During drought conditions, the RWPS pumping capacity can be affected by the low water levels at Shasta Lake.
Demand
The City provides water service to the following number and types of connections: 3,549 to Residences, 141 to Multi-Family/Mobile Home Parks, 168 to Commercial/Industrial/Civic uses, 24 to irrigation sites, and nine to schools.
Rates
The City maintains a water services rate structure, as shown below in Table 2.
Table 4: City of Shasta Lake Water Use Rates
RESIDENTIAL
Meter Size Base
Tier 1 Rate (per
(100 cubic ft.)
5/8" $31.08 $2.44
1" $70.45 $2.44
COMMERCIAL
5/8" $31.08 $2.63
1" $70.45 $2.63
1.5" $136.06 $2.63
2" $214.79 $2.63
The City will be preparing a new rate study with new rates anticipated in Summer/Fall 2024.
Wastewater
The City owns, operates, and maintains the wastewater collection system and treatment plant.
The City serves approximately 3,800 residential, commercial, industrial, and institutional accounts. Within the City limits, there are more than 500 on-site wastewater treatment systems.
Most of these are within City limits, but outside of the current wastewater service area to the west. This area is known as Summit City and their septic tanks are regulated by Shasta County.
The system consists of six lift stations, about 58 miles of gravity mains, four miles of force mains, with up to 21-inch pipe sizes conveying flow to the City’s wastewater treatment plant (WWTP) located in southwest corner of the City adjacent to Churn Creek. The WWTP is designed to treat a maximum average dry weather flow (ADWF) of 1.3 million gallons per day (MGD) and a peak wet weather flow of up to 5.3 MGD. Due to water efficiency implementation efforts throughout the City over the last 15 years, the current ADWF being treated has decreased from 0.69 MGD in 2004 to 0.50 MGD in 2022 and 0.58 MGD in 2023. About 80 percent of gravity sewer pipes in the City consist of the original VCP system. The other 20 percent is PVC that has been installed as the collection system expands.
Lift Station 1 is a dry pit submersible station consisting of two pumps with a firm capacity of 0.5 MGD. Lift Station 2 is an ejector pot station consisting of one pot with a capacity of 0.06 MGD.
Lift Station 3 is a dry pit station consisting of three pumps with a firm capacity of 2.4 MGD. Lift Station 4 is a dry pit submersible station with a firm capacity of 1.44 MGD. Lift Station 5 is a wet pit submersible station with a firm capacity of 2.9 MGD. Lift Station 6 is a wet pit submersible 67 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 14 Commission Draft – December 2023
station with a firm capacity of 0.31 MGD. There are onsite standby replacement pumps at Lift Stations 1, 3, 4, 5, and 6 to reduce downtime if a pump fails.
Stormwater Management
Drainage Facilities
The City’s storm drain system consists of natural and manmade open channels and ditches, and a system of storm drainpipes, inlets/outlets, area drains and catch basins. New development runoff is commonly controlled with detention basins.
Pyrethroid Pesticide Management
Pyrethroids are a class of synthetic insecticides found in household pesticides and remain in the environment for a long period of time, frequently transported to aquatic environments by surface runoff. The concentration of these pesticides results in impaired water quality standards and aquatic health; the Central Valley Regional Water Quality Control Board (CVRWQCB) passed a Pyrethroid Pesticide Control Program in 2017 to control the discharge of pyrethroid pesticides.
In 2021, the City of Shasta Lake developed a Pyrethroid Management Plan to respond to the CVRWQCB Program. Pyrethroid pesticides are still allowed and sold in City limits, but consumers and businesses are encouraged to reduce their sales of these pesticides. The full Pyrethroid Management Plan can be found on the City’s website.
68 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 15 Commission Draft – December 2023
Figure 3: City Natural Resources and-Flood Zones
69 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 16 Commission Draft – December 2023
Flooding
Past City flood events have been localized when precipitation exceeds channel capacity including backyard, garage, and some street flooding. Flooding also occurs in areas adjacent to creeks following prolonged rain events that generate high runoff volume in areas with saturated soils from previous rain events. The Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRM) identify several properties in the City within designated flood hazard zones. These areas are shown in Figure 3. The City General Plan 2040 includes policy and programs to reduce flooding hazards in specific areas while minimizing the need for construction of flood control facilities.
Electric Services
The City of Shasta Lake provides safe, reliable, environmentally friendly electric service at the lowest possible cost consistent with sound business practices to customers within its electric service territory. The City’s customers are served by the Central Valley substation and the Knauf substation. The City has four small solar installations they own and operate located on City facilities.
The City serves the following number of customers: 4,288 Residential, 223 Commercial, 16 Industrial, 14 Schools, 18 Civic, and 68 City/Government.
City electrical assets include transmission lines, distribution lines, substations, and small-scale generation assets, among others. They own 15 miles of 115 kV transmission lines, about 60 circuit miles of overhead primary distribution lines, and approximately eight miles of underground primary distribution lines.
According to the City’s 2040 General Plan, they plan to explore locations and projects for “community solar,” or utility-scale photovoltaic systems that have supporting programs to directly serve the City’s end-users’ electricity needs.
Customer-Generator Interconnection Policy
The City of Shasta Lake allows their electric service customers to install a permanent Renewable Electrical Generation Facility to offset part or all of the customer’s own electrical requirements and is no more than one megawatt. It is allowed to be located on the customer’s owned, leased, or rented premises and must be interconnected and operate in parallel with the City’s electric grid. The customer pays a one-time fee to help fund the City’s activities related to electric service review, evaluation, inspections, and deactivation/activation during the installation of the Customer-Generator Renewable Electricity Generation Equipment.
Animal Control
The Animal Control Department strives to provide residents with effective and cost-efficient services through active enforcement of state and local laws, humane sheltering, disposal of stray and unwanted animals, and the promotion of responsible pet ownership and animal welfare.
Shasta Lake Municipal Code 6.12.090 describes the requirements for surrendering an animal to the shelter. The surrenderer must have a valid California driver’s license or ID with a valid Shasta Lake address, a City of Shasta Lake utility bill that matches the name and address on the license or ID, licensing through the City of Shasta Lake showing proof of ownership and must pay a fee of $10 for an adult cats or dogs, $25 for a female with a litter, and $5 per weaned puppy/kitten.
The same requirements apply to non-owned trapped animals. If a resident traps wildlife within the City, they shall not transport it and call animal control to help release or dispatch the wildlife. 70 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 17 Commission Draft – December 2023
Calls for larger wildlife, such as mountain lions, are now directed to the Department of Fish and Wildlife of California.
An impounded animal is held for four days not including the day of impoundment to locate a suspected owner to reclaim their pet. Owned animals not reclaimed within fourteen (14) days will be put up for adoption. When an owner surrenders a pet, the animal will be put up for adoption at the end of four (4) days not including the day of surrender. All adoptions are final.
There is an adoption fee of $10 if the animal is already spay/neutered. For a male feline, the alteration fee is $119.50 and $195.50 for a female feline (canine alteration is based on weight). These services include a rabies vaccine, microchip and alteration.
Pet owners in the City must have their canines licensed 6.12.011(D). They are available to purchase at City Hall, and the owner must provide proof of vaccination and pay the fee. If an owner requests a reduced licensing fee, they must provide proof of alteration. The fees are $25 for one year for unaltered dogs, or for altered dogs it is $5 for one year, $9 for two years, and $12 for three years. Senior citizens get half off the altered dog fees and pay $5 for one year for unaltered dogs.
Circulation Planning, Accessibility and Transportation Management, Street Maintenance The City transportation system serves a mix of local, commuter, recreational, visitor, industrial and commercial trips. Tourists pass through the City for destinations like the Shasta Lake Reservoir and Shasta Dam.
Circulation Classification System
Principal/Major Arterial Streets: Serve primarily long-distance travel and typically designed as either access-controlled or partially access controlled with limited locations at which vehicles can enter and exit the roadway. Arterials typically have higher posted speed limits because vehicles encounter few or no at-grade intersections. There are currently no roadways in the City that are designated as principal/major arterials.
Minor Arterial Streets: Provide service for moderate length trips and distribute traffic to smaller geographic areas than major arterials. Minor arterials are typically designed to provide relatively high overall travel speeds, with minimum through traffic delay.
Major Collector Streets: Route traffic from local streets to the arterial roadway network. Major collector streets are typically longer in length, serve higher-density residential and commercial/industrial areas, have higher annual average traffic volumes, have lower connecting driveway densities, are spaced at greater intervals, have higher speed limits, and may have more travel lanes than minor collector streets.
Minor Collector Streets: Route traffic from local streets to the arterial roadway network. Minor collector streets are typically shorter in length, serve lower-density residential and commercial/industrial areas, have lower annual average traffic volumes, have higher connecting driveway densities, are spaced at smaller intervals, have lower speed limits, and may have less travel lanes than major collector streets.
Local Streets: Provide access for 25 to 50 potential residences. 71 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 18 Commission Draft – December 2023
Active Transportation
The City prioritizes infill development to help create opportunities for active transportation by lessening the distance between origins and destinations. The City was involved in the development of the Healthy Shasta Health Impact Assessment and Shasta Walks which help to encourage active transportation. The encouragement of active transportation helps to decrease passenger vehicle use, which in turn reduces greenhouse gas emissions. The Shasta area has had significant investment in bicycle infrastructure. Although, they are generally not well-connected, diminishing their utility. The pedestrian network has also been substantially invested in. Similar to the bike network, the pedestrian network is not complete, having gaps in sidewalks and walkways. To improve active transportation, the City plans to inventory and assess existing and needed repairs, updates, and newly constructed bikeways and sidewalks.
In 2018, the GoShasta Regional Active Transportation Plan (GoShasta Plan or Plan) was published and serves as an active transportation plan for the City of Anderson, the Shasta Regional Transportation Agency (SRTA), Shasta County, and the City of Shasta Lake. This Plan provides the current status of active transportation in the region, the goals of the plan, program and project recommendations, and project prioritization standards and funding opportunities.
Program and project recommendations cover topics such as pedestrian and bicycle facilities, transit connections, bike theft prevention, employer incentives, pedestrian networks, corridor improvements, and more. The City was an agency partner in the development of the GoShasta Plan, which serves as a critical resource for sourcing active transportation grant funding within the City.
Local Road Safety Plan
The City was awarded a grant from Caltrans in 2020 to create a Local Road Safety Plan (LRSP), which was published in 2021. The LRSP allowed for the City to conduct an analysis of the roadways, including current collision patterns and high-risk characteristics, and identify mitigation measures to reduce collision severity. To improve the City’s roadway safety, it is important to focus on mitigating high injury collisions and loss of life.
According to the stakeholder working group, the emphasis areas should be to find ways to reduce wrong way driving on Shasta Dam Boulevard; evaluate ways to improve pedestrian crossings; promote walking and bicycling; safe routes to school; encouragement and education efforts; evaluate traffic calming options; address COVID-19 related changes to traffic; circulation changes from development projects; and prioritize based on collision frequency, Equivalent Property Damage Only (EDPO) ranking, and crash rates.
To combat the identified problem areas, the City plans to prioritize and incorporate strategies in relation to engineering projects, systemic safety applications, education, emerging technologies, enforcement, and emergency response. The engineering and systemic safety strategies include improving city intersections, such as upgrading signage and a potential roundabout. Another possible strategy is to create an education campaign for drivers and pedestrians. The campaign will address safe driving and safe crossing behaviors in order to reduce collisions, injury, and death. The City is considering implementing emerging technologies, such as Intelligent Transportation Systems (ITS) or crash warning systems. The City would like to improve enforcement of traffic laws, as well as emergency response’s ability to provide services.
The LRSP lays out a prioritized list of projects that may be incorporated with the Capital Improvement Program (CIP). This funding is very limited and is typically allocated for roadway paving, so additional funding opportunities will likely need to be sourced from grants. The LRSP is updated every five years and the next version is expected to be published in 2026. 72 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 19 Commission Draft – December 2023
Redding Area Bus Authority
The City’s transit services are provided by the Redding Area Bus Authority (RABA). Current service issues include a single route serving the City, long wait times (up to an hour) for buses on that route, and a lack of transit stops with shelters.
Shasta Regional Transportation Agency (SRTA)
The SRTA 2018-2022 Regional Transportation Plan had a goal of starting an on-demand transit pilot project service. The pilot project was to begin a Sunday service in high-demand areas and in the City of Shasta Lake. Based on the project’s real-world performance and lessons, SRTA wanted to explore possible expansion of service area and time of day. According to the SRTA’s Ways and means Report from 2021, the project, named ShastaConnect On-Demand Transit, began in October of 2019, but was paused for 6-months due to COVID-19. It was relaunched in November 2020, with an expanded service area that includes the cities of Shasta Lake and Anderson. In December of 2020, eligibility for social services transportation was also expanded to include anyone 18 years and older. The project pilot continued through 2022 using new funding, and they continue to evaluate the potential for long-term operations.
Public Facilities, Parks and Recreation
The City is currently the primary provider of parks and recreational facilities. The Gateway Unified School District provides varying athletic facilities but are not available for public use. The WinnPrice field, owned by the City, is used by Central Valley High School for its baseball functions.
The City has 1.25 acres of mini parks, 2.92 acres of neighborhood parks, 25.84 acres of community parks, 14.4 acres of special use areas, and 130.52 acres of undeveloped park land.
The City identified their needs for specialized facilities and recreation programs. They found their facilities needs include tourist related facilities (museum, campground, golf course), restrooms in parks, group picnic facilities, and a water playground. The recreation program needs include adult softball, adult basketball, adult volleyball, special interest classes, and youth programs (summer recreation and ongoing programming for teens). Since the identification of these needs, many of the needed recreation programs are now offered through a partnership with the City of Redding Parks and Recreation Department, Recreation Division. Additional youth sports activities offered in this partnership may have subsidized costs provided by the City of Shasta Lake.
The City plans to create a more accessible, Citywide Park system, including interconnected and accessible facilities, with new and upgraded neighborhood and community parks providing basic recreational opportunities within walking distance of most residents. The City proposes to connect parks and neighborhoods with on and off-street trails.
The City has several meeting areas available for use, including the Larry J. Farr Community Center located at 4499 Main Street and the community room at the Shasta Lake Visitor’s Center located at 1525 Median Avenue. The Community Center has one event room available to rent and has a capacity of 300 max, or 280 seated. A full day, 6 hours or more, costs $600 and a partial day, 6 hours or less, costs $400. Local nonprofits get a 50 percent discount. The rental has a cleaning deposit of $200 with no alcohol and $500 with alcohol, and comes with 260 stacking chairs, 10 8’ rectangular tables, 32 6’ round tables, and a basic AV system. The Visitor Center’s meeting room has a max capacity standing or seated of 30, costs $15/hour, and has no cleaning deposit. The Community Center is open Monday through Friday 8am to 10pm and from 8am to 12am on the weekend.
73 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 20 Commission Draft – December 2023
Figure 4: Public Facilities, Parks and Recreation
74 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 21 Commission Draft – December 2023
Law Enforcement
The City contracts with the Shasta County Sheriff's Office for law enforcement services within City limits. The Shasta Lake station is located at 4488 Red Bluff Street adjacent next to Shasta Lake City Hall and primarily serves the incorporated areas of the City. It is their goal to maintain a safe and secure environment for community members and visitors through fair and ethical law enforcement practices. In addition to general law enforcement services, the Sheriff’s Office operates the Lake Shasta Boating Safety Unit, Shasta County Jail, Shasta County Coroner’s Office, the Office of Emergency Services, Search and Rescue, K-9, Bomb Squad, Dive Team, Special Weapons and Tactics (SWAT), and Citizens Volunteer Patrol. They also provide investigative services for major crimes, such as homicide, sexual assault, and robbery.
Emergency and non-emergency dispatch is provided by SHASCOM (Shasta Area Safety Communications Agency), a local joint powers agency.
Shasta Lake substation staffing includes one Lieutenant (Station Commander), two Sergeants, nine Deputies, two Community Service Officers, and two Cadets.
Emergency Preparedness
Flooding, Natural Resources
Surface Water
The three major creeks in the City are Churn Creek, Salt Creek, and Moody Creek, each of which drains sizeable areas ranging between 2,400 and 6,000 acres. Salt Creek collects runoff from the central core of Shasta Lake and converges with Churn Creek in the City of Redding. Moody Creek drains a small area in the northeastern area of the City. Other streams include Rich Gulch, Little Churn, Nelson and Rancheria Creeks. The City’s topography and drainage patterns generally flow northwest to southeast.
The Sacramento River Watershed Program (SRWP) identifies no comprehensive Churn Creek or Stillwater Creek water quality studies and no known studies prepared for other streams within the City, although some data exists from periodic sampling by state water resource agencies and from the City’s WWTP which discharges treated effluent to Churn Creek. Available data indicates that water quality is generally good; however, there have been concerns with turbidity and suspended solids from channel erosion sources. High sediment loads can be carried to the Sacramento River during peak runoff events.
There is also a potential for elevated bacterial concentrations from urban runoff and failing septic systems. The federal Clean Water Act Section 303(d)(1) requires states to identify surface waters that do not meet applicable water quality standards (impaired water bodies) and prioritize such surface waters for the purposes of developing a total maximum daily load (TMDL).
According to the SWRCB 2020-2022 Integrated Report, there are no impaired water bodies within the City limits on the 303(d) list (SWRCB, 2022). The closest impaired water body located near the City is the Sacramento River.
Groundwater and Groundwater Recharge
The DWR is responsible for designating State groundwater basins. Designated groundwater basins reflect where most of the groundwater production in the State occurs. The City of Shasta Lake is not included in a State-designated groundwater basin. Non-basin areas generally consist of impermeable rocks, where groundwater is found in fractures or other voids. In non-basin areas, groundwater typically yields quantities sufficient only for limited domestic use or for agricultural stock use (DWR, 2021). Groundwater use in the City has been limited to a few domestic wells for individual single-family homes. Although not a considerable source of water 75 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 22 Commission Draft – December 2023
supply, non-basin areas provide for groundwater recharge, which occurs when water seeps into the ground to replenish underground aquifers. The City is located immediately north and west of the Enterprise Groundwater Subbasin, and recharge within the City may benefit the aquifer system. Groundwater recharge in the City is mostly by infiltration of stream flows. However, extensive use of groundwater basins within the City SOI for domestic purposes is not possible.
Wildfire
The 2019 City of Shasta Lake Wildfire Mitigation Plan for the City’s Electric Department and the 2016 Shasta County Community Wildfire Protection Plan (CWPP) lay out wildfire prevention priorities for the City. The 2016 Shasta County Community Wildfire Protection Plan (CWPP) is being updated, which may encourage the City to develop their first CWPP. The City continually works on wildfire mitigation by focusing on the ground defensible space projects in partnership with local agencies such as Western Shasta RCD, and through planning documents like the hazard mitigation plan and wildfire mitigation planning for the Electric Utility.
The City has been proactive with wildfire prevention efforts by completing fire fuel reduction projects in fire-prone areas. Planned fuel reductions include removal of dense brush and trees, woody debris distribution, as well as removal and trimming of hazardous trees and vegetation management. The City has also been very successful over the last 10 years in obtaining wildfire prevention grants and has implemented these grants to perform wildfire mitigation work at various locations throughout the City. Previously, the City was awarded $1.45 million in funding from CAL FIRE for a large hazardous fire fuel reduction project. The project consisted of approximately ±272 acres of hazardous fuel clearing in the northern and western parts of the City and its surrounding areas. Most recently in August 2023, the City received a $1.37 million grant from CAL FIRE for fuel reduction on 56 acres of land in the City. The City borders hundreds of acres of federal lands, dense with brush and trees, on rugged terrain, paired with increasingly dry conditions and additional grant funding is ongoing at any time. To date, the City has received over $3.1 million in grant funding for wildfire prevention.
Local Responsibility Area (LRA) fire protection is provided by the Shasta Lake Fire Protection District. Those areas may still include areas of flammable vegetation and the wildland urban interface (WUI). Besides a few federal properties located within the City, it is considered an LRA.
State Responsibility Areas (SRAs) are lands in the state where CAL FIRE has legal and financial responsibility for wildfire protection. CAL FIRE is in charge of fire hazard classifications and building standard regulations in these areas. The areas are defined as unincorporated county areas, not federally owned, that have watershed, range, or forage values. CAL FIRE adopts and updates SRA boundaries every five years. Some areas around the City are considered SRAs.
According to CAL FIRE’s Fire Hazard Severity Zones in State Responsibility Areas interactive map, the City is surrounded by Very High and High severity zones. 76 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 23 Commission Draft – December 2023
Figure 5: Fire Risk, Wildfire Protection-Responsibility Areas 77 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 24 Commission Draft – December 2023
City Utility and Rental Assistance Resources
City of Shasta Lake Life Line Rate Program
This program provides a discount on customers monthly electric, water, and sewer utility bill for those aged 62 or older or are disabled and fall under income guidelines.
City of Shasta Lake SHARES Program
Every 12 months, the program offers financial assistance to utility customers in the area.
LiHEAP Program
The Home Energy Assistance Program helps give assistance with home energy bills. Customers may apply every 12 months. The amount of assistance depends on income, household size, funding, and current priority plan.
Self Help Home Improvement Program (SHHIP) LIHEAP Weatherization Program The California Department of Community Services and Development (CSD) funded the LowIncome Home Energy Assistance Program (LIHEAP) and Department of Energy Weatherization Assistance Program (DOE WAP).
Veterans Resource Center (VRC) Supportive Services for Veterans and Families (SSVF) Veterans can receive funding to pay for motels, rent payments, and utility payments from the VRC’s SSVF funding.
Shasta County Tenant Based Rental Assistance Program
Low-income households can receive direct assistance to pay for rent through the TBRA funds.
TBRA is a rental subsidy that helps make up the difference between what a renter is able to afford and the actual rent for a home.
Federal Housing Administration (FHA)
Through this program, homeowners that have an FHA-insured single family home mortgage and trouble making payments due to COVID-19 may receive assistance. 78 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 25 Commission Draft – December 2023
Financial Overview
Budget Information
The City of Shasta Lake adopts biennial budgets for each of two fiscal years running from July 1st to June 30th. The most recent budget for the City for FY2022-24 (FY22-23 & FY23-24) was adopted in June 2022. As such, the years under review for this report span from FY 2018-20 to FY 2022-24.
The City’s budget is generally divided into its major governmental and enterprise funds.
Governmental funds are utilized to operate the day-to-day functions and responsibilities of the City, as well as grants. The City uses enterprise funds to account for utilities. In total, the City’s major governmental funds include:
• General Fund - accounts for the resources to carry out basic governmental activities of the City such as general government, public protection, community development, public ways and facilities, planning, and culture and recreation services. • State Trafficway Fund - for transportation revenues and expenditures. • CDBG Project Fund - for CDBG program funding primarily from grant revenues.
The City has proprietary funds and uses internal service funds to report activities that provide supplies and services for the City’s other programs and activities such as the City’s maintenance and public works operating costs. The internal services funds are reported with governmental activities in the Government-Wide Financial Statements. The City’s proprietary funds include:
• Water Fund - accounts for activity related to providing customers with water service and billing for water service provided by the City.
• Electric Fund - accounts for activity related to providing customers with electric service and billing for electric service provided by the City.
• Wastewater Fund - accounts for activity related to providing customers with wastewater service and billing for wastewater service provided by the City.
Internal Service:
• Internal Service Funds (ISF) - accounts for the City’s motor pool and public works departments, which provide services to other departments on a cost reimbursement basis.
Other:
• Private-Purpose Trust Funds - accounts for fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds and (b) are held in a trust in which the assets are (a) administered through a trust in which the government itself is not a beneficiary, (b) dedicated to providing benefits to recipients in accordance with the benefit terms, and (c) legally protected from government creditors.
• Custodial Funds - accounts for fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or privatepurpose trust funds. These include unapportionable property taxes and other custodial funds.
The General Fund is Shasta Lake’s principal discretionary funding source and covers general government, public protection, community development, public ways and facilities, planning, and culture and recreation services. The City also maintains fiduciary funds used to account for resources held for the benefit of parties outside the government. 79 City of Shasta Lake MSR/SOI Update
Shasta LAFCO 26 Commission Draft – December 2023
Table 4: City of Shasta Lake Budgets
Revenue Expenditures
FY 2018-20 FY 2020-22 FY 2022-24 FY 2018-20 FY 2020-22 FY 2022-24 General Fund $15,633,430 $19,064,385 $18,838,676 $8,273,524 $20,547,64 $21,718,171 Special Revenue Funds
Water Plant & Facilities $300,300 $360,000 $360,000 $17,377 $18,436 $18,436 Electric Plant &
Facilities $61,000 $60,000 $60,000 $3,530 $3,745 $3,745 WWr Plant & Facilities $414,767 $290,226 $495,000 $484,691 $486,104 $510,431 Parks Plant & Facilities $101,000 $120,000 $120,000 $5,844 $6,200 $6,200 CDBG Project Fund $0 $300,000 $0 $0 $300,000 $0
CDBG Housing Rehab $4,000 $0 $0 $54,365 $100,000 $100,000 CDBG HOME Program $600,000 $700,000 $200,000 $552,890 $654,000 $603,000 Housing Authority $0 $0 $0 $31,500 $110,000 $17,000
Trafficway - $1,344,991 $3,786,587 - $2,634,288 $1,735,824 Transportation - $1,294,000 $1,480,000 - $1,136,868 $698,953 Transportation/Traffic $2,163,714 - $3,140,860 - -
Law Enforce Grant $200,000 $200,000 $200,000 $200,000 $200,000 $100,000 Grant Fund $0 $0 $3,350,875 $0 $0 $1,873,457
Debt Services Fund
1995 WW Treatment $502,000 $500,000 $500,000 $478,000 $458,773 $228,370 Riddle Rd Water Bond $7,500 $7,500 $7,500 $7,000 $6,600 $3,150 David-Grunsky Loan $23,200 $23,000 $0 $26,868 $22,154 $0 Enterprise Funds
Water $7,926,785 $8,240,024 $8,240,024 $6,484,795 $8,312,638 $6,668,790 Electric $41,458,650 $44,370,195 $57,941,027 $43,388,117 $48,809,583 $30,068,877 Wastewater $6,799,738 $6,951,938 $7,458,552 $5,476,801 $9,536,368 $8,421,578 Industrial Park $114,000 $100,000 $100,000 $184,035 $164,031 $78,720 Internal Service Funds
Motor Pool $1,610,434 $1,845,548 $2,646,025 $1,546,856 $1,745,548 $1,132,908 Community Facils Dist. $110,500 $140,000 $140,000 $114,510 $114,510 $67,255 Public Works $4,290,992 $4,781,645 $5,316,458 $4,349,992 $4,781,645 $2,598,464 Total All Funds $81,625,235 $89,187,726 $111,240,724 $81,751,560 $98,332,154 $129,067,218 Budgeted General Fund revenues for FY2022-24 totaled $18.8 million. General Fund monies are primarily drawn from charges for services and taxes which account for over eight-tenths or 80.8% of the budgeted total. The remaining two-tenths of the General Fund monies are drawn from revenue from other agencies, other revenue, licenses and permits, revenue from use of money, and fines and forfeitures. Budgeted General Fund revenues have increased over the corresponding five-year study cycle by 21.5%.
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Table 5: City of Shasta Lake Budgeted General Fund Revenues Budgeted General Fund expenses for FY2022-24 totaled $21.7 million. Budgeted expenses for public safety, customer services, central services, and personnel and labor relations make up almost three-fourths or 72.4% of all allocated General Fund costs. Notably, the percentage of General Fund allocations for City Manager, development services, personnel and labor relations, animal control, customer services, and City Council have increased over the five-year study cycle by approximately and are the primary factors underlying an overall rise in General Fund budgeted expenses of 94.6%.
Table 6: City of Shasta Lake Budgeted General Fund Expenses General Fund – Budgeted Expenses FY 2022-24 % of Fund
Public Safety 8,686,834 40.0%
Customer Services 2,825,107 13.0%
Central Services 2,164,433 10.0%
Personnel & Labor Relations 2,042,646 9.4%
City Manager 1,607,500 7.4%
Development Services 1,578,296 7.3%
Parks 900,507 4.1%
Animal control 796,573 3.7%
Public Services 514,308 2.4%
Capital Outlay - General 214,445 1.0%
Finance Services 161,000 0.7%
Building Services 98,000 0.5%
City Council 83,772 0.4%
Capital Outlay - Public Ways 44,750 0.2%
Totals $21,718,171 100.1%
The General Fund only accounts for approximately 16.9% of the City’s total revenues. The other
83.1% comes from the City’s special revenue, debt service, enterprise service, and internal service funds and that help support infrastructure maintenance and improvements. A summary of the City’s total budgeted revenues and expenditures by fund type is provided below in Tables 7 and 8.
General Fund – Budgeted Revenues FY 2022-24 % of Fund
Charges for Services 5,892,383 31.3%
Taxes 419,200 2.2%
Revenue from Other Agencies 2,233,000 11.9%
Other Revenues 9,229,933 49.0%
Licenses and Permits 18,500 0.1%
Revenue from Use of Money 150,000 0.8%
Fines and Forfeitures 895,660 4.8%
Totals $18,838,676 100.0%
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Table 7: City of Shasta Lake Budgeted Revenues by Fund Type Budgeted Revenues by Fund Type FY 2022-24 % of Fund
General Fund 18,838,676 16.9%
Special Revenue Funds 10,052,462 9.0%
Debt Service Funds 507,500 0.5%
Enterprise Funds 73,739,603 66.3%
Internal Service Funds 8,102,483 7.3%
Totals $111,240,724 100.0%
Table 8: City of Shasta Lake Budgeted Expenses by Fund Type Budgeted Expenses by Fund Type FY 2022-24 % of Fund
General Fund 21,718,171 16.8%
Special Revenue Funds 10,448,600 8.1%
Debt Service Funds 465,888 0.4%
Enterprise Funds 88,430,867 68.5%
Internal Service Funds 8,003,692 6.2%
Totals $129,067,218 100.0%
Actual Total Revenues and Expenses
The City of Shasta Lake most recent fiscal year actuals ended in $8.8 million in General Fund revenues and is an increase of $0.367 million from the prior fiscal year. The average total revenue for the five-year study period is $8.3 million. Actual revenues have increased 21.4% and largely comprise of sales taxes and assessments. A summary of recent actual revenues in the General Fund follows.
Table 9: City of Shasta Lake Actual Revenues
Actual Revenues FY 2016-17
Actuals
FY 2017-18
Actuals
FY 2018-19
Actuals
FY 2019-20
Actuals
FY 2020-21
Actuals
Average Trend
Taxes and
Assessments
2,545,804 3,011,001 3,483,183 3,795,954 3,297,672 3,226,723 29.5% Licenses and
Permits
134,205 188,582 233,871 308,509 289,917 231,017 116.0%
Fines -Forfeitures 13,838 8,779 8,455 6,904 5,562 8,708 (59.8%) Money - Property 13,838 6,873 109,982 120,184 21,808 54,537 57.6% Intergovernmental 854,904 871,379 894,508 1,052,793 1,296,828 994,082 51.7% Services Charges 3,671,721 3,781,525 3,746,539 3,842,408 3,848,113 3,778,061 4.8% Other Revenues 9,267 10,788 76,384 32,283 32,536 32,252 251.1% Totals $7,243,577 $7,878,927 $8,552,922 $9,159,035 $8,792,436 $8,325,379 21.4% The City of Shasta Lake’s most recent fiscal year General Fund actuals ended in 9.6 million in expenses and is an increase of $1.7 million from the prior fiscal year. The average total expenses for the five-year study period are $9.0 million. Actual expenses have increased 41.9%. The average operating and total margin based on the five-year study cycle is (8.8%) and (25.8%), respectively. A summary of recent actual expenses, operating and total margins in the General Fund follows.
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Table 10: City of Shasta Lake Actual Expenditures
Actual
Expenditures
FY 2016-17
Actuals
FY 2017-18
Actuals
FY 2018-19
Actuals
FY 2019-20
Actuals
FY 2020-21
Actuals
Average Trend
General
Government
2,392,659 2,505,638 2,808,056 2,945,096 3,427,574 2,815,805 43.3% Public Safety 2,876,402 3,116,529 3,260,354 3,462,465 3,825,125 3,308,175 33.0% Public Ways and
Facilities
43,986 47,025 49,464 67,740 138,445 69,332 214.7%
Planning 613,211 656,802 551,883 587,176 706,800 623,174 15.3% Culture and
Recreation
193,793 309,626 297,571 316,592 283,411 280,199 46.2%
Community
Development
- 6,930 - - - 1,386 N/A
Debt Service 9,487 43,536 73,969 273,514 777,752 235,652 8098.1% Capital Outlay 613,869 6,424,840 617,388 176,475 408,118 1,648,138 (33.5%) Totals $6,743,407 $13,110,926 $7,658,685 $7,829,058 $9,567,225 $8,981,860 41.9 % Table 11: City of Shasta Lake Operating Margin
Operating Margin FY 2016-17
Actuals
FY 2017-18
Actuals
FY 2018-19
Actuals
FY 2019-20
Actuals
FY 2020-21
Actuals
Average Trend
Operating Revenues 7,243,577 7,878,927 8,552,922 9,159,035 8,792,436 8,325,379 21.4% Operating Expenses 6,743,407 13,110,926 7,658,685 7,829,058 9,567,225 8,981,860 41.9% Totals 6.91% (66.4%) 10.5% 14.5% (8.8%) (8.7%) (227.6%) Table 12: City of Shasta Lake Total Margin
Total Margin FY 2016-17
Actuals
FY 2018-19
Actuals
FY 2019-20
Actuals
FY 2020-21
Actuals
FY 2021-22
Actuals
Average Trend
Total Revenues 9,720,982 9,804,803 11,707,038 11,748,351 11,281,946 10,852,624 16.1% Total Expenses 9,165,903 14,701,492 9,797,871 18,472,888 14,196,305 13,266,892 54.9% Totals 5.7% (49.9%) 16.3% (57.2%) (25.8%) (22.2%) (552.4%) Financial Statements
The City of Shasta Lake contracts with an independent auditor to prepare an annual report to audit the City’s financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies.
The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. This includes auditing the City’s financial statements with respect to verifying overall assets, liabilities, and net position. The current independent auditor is Smith & Newell, CPA.
The City of Shasta Lake’s most recent audited financial for the five-year study cycle was issued for 2021-2022. The City experienced a significant improvement as the overall net position (full accrual basis) increased by 18.6% from $112.3 million to $133.2 million. The independent auditor’s report did not identify any notable weakness or concerns in the City’s accounting policy and/ or practices. A detail of the year‐end totals and trends during the report period follows with respect to assets, liabilities, and net position.
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Table 13: City of Shasta Lake Five-Year Study Period
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Assets 138,044,589 153,261,628 166,454,200 173,507,611
Liabilities 23,789,148 29,673,489 44,796,954 39,857,173 Net Deferred
Resources
Net Position $110,212,147 $120,603,904 $121,388,559 $133,154,982 Net Position Change $10,391,757 $784,655 $11,766,423
Agency Assets
The City of Shasta Lake’s audited assets at the end of 2020-2021 totaled $173.5 million and reflect an increase of $7.1 million from the prior fiscal year. Assets are items of value held by the City, such as cash, investments, fixed assets, etc. Assets that are classified as current assets have the expectation they could be liquidated within a year and represent $62.0 million – or 35.7% of the total assets – and largely tied to cash and investments and receivables. Assets classified as non‐ current assets and not readily liquid within a year make up the remainder and total $111.5 million and involve capital assets tied to property, infrastructure, and equipment. Overall, the City’s total audited assets have increased by $44.9 million – or 34.9% – over the corresponding fiveyear study cycle. 84 City of Shasta Lake MSR/SOI Update
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Table 14: City of Shasta Lake Assets: Current & Non-Current Assets FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Current Assets
Cash and
Investments
27,427,204 27,812,148 33,531,894 44,476,732 49,864,848
Accounts
Receivable
2,688,526 3,299,486 3,323,887 4,187,868 4,776,826
Interest Receivable 21,298 25,176 103,978 93,917 34,242 Taxes Receivable 364,601 466,819 781,961 482,279 538,736 Intergovernmental
Receivable
852,796 2,375,489 481,626 430,864 1,933,353
Assessments
Receivable
3,451,422 3,316,729 3,176,036 3,163,002 3,002,002
Deposits 643,198 593,874 412,700 428,849 543,406
Prepaid Costs 628,119 116,468 191,363 94,821 112,252
Inventory 364,236 392,891 429,001 437,894 486,715
Internal Balances 0 0 0 0 0
Cash Fiscal Agents 678,927 677,316
Total Current 36,441,400 38,399,080 42,432,446 54,475,153 61,969,696 46,743,555 70.1% Non-Current Assets
Restricted Cash
and Investments
855,542 2,326,316 1,664,576 968,530 382,772
Loans Receivable 4,896,494 5,177,155 4,819,976 4,553,546 4,279,123 Land Held for
Resale
594,927 594,927 594,927 534,984 534,984
Capital Assets -
Nondepreciable
9,756,722 17,941,860 25,601,771 7,149,149 10,898,968
Capital Assets -
Depreciable
74,260,674 73,605,251 78,147,932 98,454,437 95,202,422
Net OPEB 1,826,165 318,401 239,646
Total Non-Current 92,190,524 99,645,509 110,829,182 111,979,047 111,537,915 105,236,435 21.0% TOTAL ASSETS $128,631,924 $138,044,589 $153,261,628 $166,454,200 $173,507,611 $151,979,990 34.9% Agency Liabilities
The City’s 2020-2021 audited liabilities total $39.9 million and reflect a decrease of $4.9 million from the prior fiscal year. Liabilities are monies due, such as accounts payable, loans and bonds payable, money due to other governmental agencies, etc. Liabilities that are classified as current liabilities have the expectation, they will become due within a year and represent $7.4 million of the total liabilities – and largely tied to accounts payable, accrued payroll, and compensated absences. Liabilities classified as non‐current and considered longer termed debts make up the remainder of the total amount. Overall, the City’s total audited liabilities increased by $22.3 million or 127.0% over the corresponding five-year study cycle. 85 City of Shasta Lake MSR/SOI Update
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Table 15: City of Shasta Lake Liabilities: Current & Non-Current Liabilities FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Current Liabilities
Accounts Payable 852,264 2,168,488 1,917,473 865,395 4,113,603 Retentions Payable 29,568 474,698 787,370 25,943 169,777 Salaries + Payable 199,238 212,548 222,234 279,316 297,205 other Governments 848,762 1,154,832 1,246,801 1,124,130 1,740,509 Deposits Payable 551,916 547,481 616,218 657,402 675,535 Interest Payable 105,588 105,747 135,600 389,791 405,591 Unearned Revenues 24,867 43,955 26,233 22,408 22,263
Total Current $2,612,203 $4,707,749 $4,951,929 $3,364,385 $7,424,483 $4,612,150 184.2% Non-Current Liabilities
Long-term debt - 1 year 757,192 794,951 800,121 1,570,880 1,376,403 Long-term debt - 1 yr. + 7,146,347 9,243,168 14,687,466 31,685,842 30,825,604 Net Pension Liability 6,485,096 7,588,576 7,416,000 8,175,847 230,683 Total OPEB liability 555,814 1,454,704 1,817,973 - -
Total Non-Current $14,944,449 $19,081,399 $24,721,560 $41,432,569 $32,432,690 $26,522,533 117% TOTAL LIABILITIES $17,556,652 $23,789,148 $29,673,489 $44,796,954 $39,857,173 $31,134,683 127% Net Position
The City of Shasta Lake’s audited net position at the end of 2021-2022 totaled $133.2 million and reflects an increase of $11.8 million from the prior fiscal year. The net position represents the difference between the City’s total assets and total liabilities along with adjusting for deferred resources (i.e., pension outflows and inflows). Most of the net position – $83.4 million – is tied to capital assets. Capital assets are generally a tangible or intangible asset that is used in operations and that has a useful life of more than one year, such as land and improvements to land; buildings and building improvements; vehicles; machinery; equipment; and wastewater, water, and roadway infrastructures. The remainder is comprised of restricted monies tied to establishing new pension related trusts in FY2021. The unrestricted portion of the City’s net position as of the last audited fiscal year totaled $34.3 million. This represents the accrued spendable portion of the fund balance and is only subject to discretionary designations (commitments and assignments) established by the City. The City has sufficient reserves to cover its expenses in the event of a fiscal emergency, such as an economic recession or natural disaster.
Table 16: City of Shasta Lake Net Position
Category FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Capital Assets 76,514,842 81,900,784 87,801,684 82,058,020 83,364,994 82,328,065 9.0% Restricted 9,899,676 4,941,877 5,078,097 10,445,637 15,502,999 9,173,657 56.6% Unrestricted 25,880,514 23,369,486 27,724,123 28,884,902 34,286,989 28,029,203 32.5% Net Position $112,295,032 $110,212,147 $120,603,904 $121,388,559 $133,154,982 $119,530,925 18.6% 86 City of Shasta Lake MSR/SOI Update
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Debt – Budget source
The David-Grunsky Loan is repaid through a tax override against properties inside the improvement area. The load is for the debt service requirements to retire the voter-approved override that was issued in 1974 to finance the construction of a water system in Summit City.
The Wastewater Reclamation Facilities Assessment District is a fund for the debt service requirements for retiring an assessment in September 1996 which financed the expansion for the Wastewater Treatment Plant. The first payment was in September 1995 and will mature in September 2034.
Riddle Road Waster Bond accounts for the debt service needed to retire the voter-approved assessments issued in August of 1989 to finance the construction costs for the Riddle Road water system. The first payment was in March 1990 and will mature in September 2029.
Financial Governance
Budgets are approved annually by the City Council which then establishes the scope of work and improvements that can be performed. Annual budgets and audits are available upon request to the District. Annual reporting is provided to the State Controller’s Office per state law.
The City is a participant in Small Cities Organized Risk Effort (SCORE), the purpose of which is for member cities to share in the administrative costs of providing liability and workers’ compensation insurance. SCORE is composed of 18 member cities and is governed by a board of directors appointed by the member cities.
Water
Water System administrative charges include permits, insurance, depreciation, administrative fees, Motor Pool, and debt expense. Water Distribution services include maintaining distribution mains and service lines, performing routine and emergency maintenance on valves/boxes, meters/boxes and fire hydrants. Water Supply and Treatment services include administering the water conservation program, obtaining an adequate supply of domestic water and treating the water to meet (as a minimum) State health standards. The Water Department is responsible for providing adequate capacity for future growth with infrastructure development and replacement. The capital outlay budget includes capital improvements and capital replacement of the Water Treatment Plant and distribution facilities.
Wastewater
Administrative charges for the Wastewater System Utility include expenses such as permits, insurance, depreciation, administrative fees, Motor Pool, and debt expense. Wastewater Treatment and Reclamation is responsible for processing the City’s wastewater to meet state health standards and to provide reclaimed water for industrial and agriculture/landscaping uses. The Department includes the City’s reclamation plant and spays fields surrounding the plant as well as the 410 acre reclamation pond. Wastewater Collection is responsible for all types of maintenance, installation, operation, and repair of approximately forty miles of sewer lines and the maintenance of seven pump stations located throughout the City. Capital Outlay provides for the funding of capital improvements and capital replacement of materials and equipment at the Wastewater Treatment Plant and in the Wastewater Collection System.
Electric
Electric System Utility administrative charges include insurance, depreciation, administrative fee, lease payments, debt service and Public Benefit Program expenses. Electric operations are responsible for providing electric utility service to customers within its electric service territory.
The Department operates and maintains the distribution system, establishes electric service to 87 City of Shasta Lake MSR/SOI Update
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new customers per applicable City policies, plans for future growth, and handles infrastructure replacements. Electric resource management is responsible for electric energy resource and plant management, including the planning, scheduling, purchasing and sales of electric power for the City. The capital outlay budget includes funding for capital replacements, facility improvements, additions, distribution system automation, wildfire mitigation, SMART grid technology, and long-term utility system development.
Animal Control
The Animal Control Department carries out the California Health and Safety agenda for the public’s health and animal welfare being. The Department is responsible for collecting stray animals, enforcing the City’s Animal Control Ordinance, ensuring animals are licensed and have requisite inoculations, coordinate rabies clinics, spaying and neutering of animals, and is responsible for issuing nuisance citations to local citizenry who do not abide by the City’s ordinance in support of neighborly pet ownership.
Public Facilities, Parks and Recreation
The Parks & Recreation Department is responsible for the maintenance of all City park facilities.
Recreation services include the administering summer programs. In partnership with the Gateway Unified School District, and the Shasta Lake Garden Project, the Park Department works to help beautify the City.
Law Enforcement, Public Safety Services
The Contract services agreement between the City of Shasta Lake and the Shasta County Sheriff’s Offices is a year-to-year agreement. The partnership encompasses law enforcement personnel, equipment, services which include traffic enforcement. The alliance with the community, staff, and the volunteer patrol. This Contract is overseen by the City Manager Department.
Public Services
Under the direction of the City Engineer, the Public Services program is dedicated to the efficient design, construction, operation, and maintenance of public works systems and programs that protect and enhance the quality of life of the citizens of Shasta Lake.
Development Services Department: Building, Planning, and Code Enforcement Development Services is responsible for building, code enforcement, current and long-range planning in the City. The Planning Division reviews land use proposals and ensures compliance with federal, state, and local regulations. The Division provides direction and leadership in implementing the goals, objectives, and policies of the City as adopted by the City Council.
The Building Division provides enforcement of minimum standards to safeguard life, health, property, and public welfare. The Division is responsible for Code Enforcement and the abatement of dangerous buildings, site conditions, and accumulations of junk and debris on private property.
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Municipal Service Review Determinations
(1) Growth and population projections for the affected area a) The estimated 2021 City population was 10,423. Based on housing and population projections from the City’s General Plan 2040, there could be an additional population of 2,083 and 837 additional housing units by 2040.
(2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence
a) Shasta County had a 2021 MHI of $48,257 which is 61% of the California MHI and qualifies the County as a disadvantaged area. As such, it is likely that DUCs exist adjacent to the City boundary and should be considered carefully prior to any annexations. 3) Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies.
a) The City is a retail water supplier that receives water from Lake Shasta. They have an existing contract through the Central Valley Project for 4,480 AF per year of which they are utilizing approximately 60%. They also have an additional 40 year take-or-pay transfer contract with ACID for 2,000 AF per year. As of 2023, the City has 3,549 water service connections.
b) The City provides wastewater collection and treatment to 3,800 connections. The WWTP is designed to treat a maximum average dry weather flow of 1.3 million gallons per day (MGD) and a peak wet weather flow of up to 5.3 MGD. The City has decreased the average dry weather flow through water efficiency implementation efforts. c) The City of Shasta Lake provides safe, reliable, environmentally friendly electric service to a total of 4,627 customers of which 93% are residential. The City is interested in developing a community solar or utility-scale photovoltaic systems to help serve customer needs. d) The City’s Animal Control Department strives to provide residents with effective and costefficient services through active enforcement of state and local laws, humane sheltering, disposal of stray and unwanted animals, and the promotion of responsible pet ownership and animal welfare.
e) The City also provides a number of other services including stormwater conveyance, street maintenance, short and long term planning, and economic development. The City strives to provide excellent service to all its residents. f) The City currently has a total of 174.93 acres of park land of which 75% is undeveloped open space. The Cities of Shasta Lake and Redding have partnered to subsidize recreation programs that are now available to Shasta Lake residents. 4) Financial ability of agencies to provide services.
a) The City adopts a biennial budget and provides for regular audits. The City’s overall net position increased by 18.6% over the five year review period from $112.3 million to $133.2 million.
5) Status of and, opportunities for, shared facilities
a) Shasta Lake currently obtains fire services from the Shasta Lake Fire Protection District and law enforcement services from the Shasta County Sheriff’s Office. The City of Shasta Lake has also partnered with the City of Redding on recreational services are area residents. 89 City of Shasta Lake MSR/SOI Update
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6) Accountability for community service needs, including governmental structure and operational efficiencies.
a) The City of Shasta Lake is governed by a five-member council elected to staggered four year terms. Meetings are held twice monthly and agendas are posted to the City’s website at least 72 hours in advance of the meeting.
b) The City maintains a website in accordance with state law that includes information about all City departments and public utilities including water, wastewater, and electricity.
7) Any other matter related to effective or efficient service delivery. a) No others noted.
Sphere of Influence Determinations
In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly development of local governmental agencies, to advantageously provide for the present and future needs of the county and its communities, the commission shall develop and determine the sphere of influence, as defined by GC § 56036, and enact policies designed to promote the logical and orderly development of areas within the sphere. In determining each local agency’s SOI, the commission shall consider and prepare a written statement of its determinations with respect to the following:
(1) Present and planned land uses in the area, including agricultural and open-space lands. a) A wide range of land uses exist within the City of Shasta Lake. The most prominent land use type is Suburban Residential (23%) followed by Urban Residential (18%). Combined, residential designations make up 60% of all land uses within the City. b) Existing and planned uses in the City also include Public facilities parks and open space designated lands. The General Plan 2040 includes a land use policy that states: ‘As the community grows and faces development pressure along I-5 and on its fringes, the City must be both deliberate and resolute in its commitment to preserve the character and economic vitality of downtown. The City shall encourage economic growth and continued improvement in the downtown area, on already-developed areas, and on underutilized parcels.’ This should be sufficient for planned growth without further Sphere of Influence expansion.
(2) Present and probable need for public facilities and services in the area. a) The City of Shasta Lake remains populated and is expected to have an annual growth rate of 1% resulting in an estimated population of 12,506 by 2040. This indicates there is a continued need for services in the area.
(3) Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide.
a) City services appear adequate to serve current and future needs. The City is currently using less than its contracted annual water allocation from the CVP and has excess wastewater capacity to meet future demands. The City has also been able to increase its overall net position, indicating adequate financial planning. 90 City of Shasta Lake MSR/SOI Update
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(4) Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency.
a) The City of Redding, located directly south of the City of Shasta Lake provides commercial opportunities, service industry, and social activities for residents and visitors.
It is the largest of the County’s three cities with an estimated 2020 population of 93,393. (5) For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere.
a) There are no proposed changes to the City’s SOI at this time. The existing SOI is reaffirmed as shown in Figure 1 – City Boundary and Sphere of Influence. b) Water and wastewater services are currently being provided by the City of Shasta Lake.
Fire and emergency response services are provided by the Shasta Lake FPD. 91 SHASTA LOCAL AGENCY FORMATION COMMISSION
LAFCO RESOLUTION 2023-11
RESOLUTION OF THE SHASTA LOCAL AGENCY FORMATION COMMISSION
ADOPTING THE MUNICIPAL SERVICE REVIEW & SPHERE OF INFLUENCE UPDATE
OF THE CITY OF SHASTA LAKE
WHEREAS, the Cortese Knox Hertzberg Local Government Reorganization Act of 2000 governs the organization and reorganization of cities and special districts by Local Agency Formation Commissions established in each county, as defined and specified in Government Code Sections 56000 et seq.; and
WHEREAS, the Shasta Local Agency Formation Commission (LAFCO), hereinafter referred to as the "Commission", is authorized to conduct Municipal Service Reviews (MSR) and establish, amend, and update Spheres of Influence (SOI) for local governmental agencies whose jurisdictions are within Shasta County; and
WHEREAS, the MSR/SOI Update is for the City of Shasta Lake; and WHEREAS, the Executive Officer prepared a Draft City MSR/ SOI update, with no change to the SOI Boundary, based upon this analysis pursuant to California Code Section 56430; and
WHEREAS, the City of Shasta Lake has updated their General Plan – City of Shasta Lake General Plan 2040, which included land uses for the SOI area; and WHEREAS, the City Manager and Staff reviewed the MSR/SOI Update and provided valuable comments; and
WHEREAS, in the accordance with California Government Code Section 56661, the Executive Officer has given sufficient notice of the public hearing by the Commission; and WHEREAS, the Executive Officer has presented to the Commission a written staff report with recommendation on the proposal in the manner provided by law; and WHEREAS, the Commission heard and fully considered all testimony and evidence presented at a public hearing held on December 7, 2023; and
WHEREAS, the Commission considered all the factors required under California Government Code Section 56425; and
NOW THEREFORE, IT IS RESOLVED, DETERMINED AND ORDERED as follows:
1. The Commission hereby accepts the City of Shasta Lake Municipal Review and Sphere of Influence update, incorporated herein by reference.
92 Shasta LAFCO Resolution No. 2023-11 December 7, 2023 City of Shasta Lake MSR/SOI Update Page 2 of 2
2. The Commission, as the lead agency, finds the Sphere of Influence update is exempt from further review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations, Chapter 3 CEQA Guidelines, Section 15061 (b)(3).
3. The Commission, pursuant to Government Code Section 56425, makes the written statement of determinations included in the SOI update, hereby incorporated by reference.
4. The Executive Officer shall revise the official records of the Commission to reflect this Sphere of Influence Update and is authorized to make non-substantive changes for the record.
BE IT FURTHER RESOLVED The Municipal Service Review and Sphere of Influence update of the City of Shasta Lake is hereby approved and incorporated herein by reference as presented on the attached map noted as Exhibit A.
Adopted on December 7, 2023, by the following votes:
AYES:
NOES:
ABSTAINS:
ABSENT:
Dated: _______________________________________
Stan Neutze, Chair
Shasta Local Agency Formation Commission
Attest:
Dated: ________________________ _ ________________________________ George Williamson, Executive Officer
Shasta Local Agency Formation Commission
Exhibit A: City of Shasta Lake Location Map
93 Shasta
Lake
§¨¦5
¬«151
§¨¦5
Mac'S Rd
Shasta Dam Rd
Pine Grove Ave
Copyright:(c) 2014 Esri
Sources: Boundaries, Roads, Parcels: Shasta County GIS.
Figure
City of Shasta Lake
City of Shasta Lake
City of Shasta Lake SOI
Shasta
Map Date: 1/30/2023
0 0.5 1 Miles
´
94 Report and Recommendations 6.9
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Peter Bird, Senior Planner
DATE: February 20, 2024
SUBJECT: Ordinance Adopting the Very High Fire Hazard Severity Zone FILE NO: N/A
RECOMMENDATION:
Staff recommends the City Council approve the second reading of an ordinance adopting the Very High Fire Hazard Severity Zones within the City of Shasta Lake, pursuant to Government Code Section 51179.
BACKGROUND
During the February 6th meeting, City Council instructed staff to apply to the California Board (Board) of Forestry and Fire Protection for inclusion in the Fire Risk Reduction Community List. Of the six requirements necessary for the application, three remain incomplete. The first requirement is to adopt an ordinance that designates Very High Fire Hazard Severity Zones within the city and submit it to the Board. The second and third items require evidence of a compliant Local Hazard Mitigation Plan and adoption of one or more local fire risk reduction requirements that exceed the minimum regulations adopted by the state.
Attached to this report is the ordinance adopting the California Board of Forestry and Fire Protection mapped areas of very high fire hazard severity zones within Local Responsibility Areas within The City of Shasta Lake. The Board identified these zones based on consistent statewide criteria that factors in fuel loading, slope, fire weather, and other relevant factors.
95 The proposed ordinance accepts and adopts the very high fire hazard severity zones as the official designation for our jurisdiction. The ordinance references the maps and data prepared by the Board of Forestry and Fire Protection to identify the specific locations of very high fire hazard severity zones based on the established criteria.
Adoption of the ordinance will not affect existing City of Shasta Lake protocols or procedures, as these zones are already considered during land use or building project approvals and appropriate measures are applied.
FISCAL IMPACT
Possible significant revenue generated through prioritized grant applications.
ATTACHMENTS
Ordinance CC-2024-XX
DISTRIBUTION
City Council
City Manager
Attachments:
- Map of Very High Fire Hazard Severity Zones
- Full text of proposed ordinance
96 ORDINANCE CC-2024-02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE, COUNTY OF
SHASTA, STATE OF CALIFORNIA, ADOPTING THE VERY HIGH FIRE HAZARD
SEVERITY ZONES WITHIN THE CITY OF SHASTA LAKE
WHEREAS, Pursuant to Public Resources Code Section 4290.1, the California Board of Forestry and Fire Protection (Board), the California Code of Regulations Title 14, Division 1.5, Chapter 7, Subchapter 1, Article 3 established the criteria for the Fire Risk Reduction Community (FRRC) list, which creates incentives for jurisdictions that are compliant with Board requirements and that have enacted FRRC local policies; and WHEREAS, the City of Shasta Lake desires to submit an application for the FRRC list.
WHEREAS, Pursuant to Government Code Section 51179, a local agency shall designate by ordinance very high fire hazard severity zones within its jurisdiction; and WHEREAS, the City of Shasta Lake proposes to amend Municipal Code Title 15 – Building and Construction to adopt the very high fire hazard severity zones; and WHEREAS, the City Council conducted a public hearing on February 20, 2024 and considered any and all public testimony provided regarding the proposed ordinance, as well as all written materials and other information in the record.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake does hereby ordain as follows:
SECTION 1: Findings, determinations, and direction
1. After hearing testimony, considering all evidence submitted to the administrative record, and engaging in due deliberation of the matters presented, City Council finds the above recitals are true and correct.
2. Pursuant to Government Code Section 36933, the City Council directs the city clerk to publish a summary of the proposed ordinance within 15 days after adoption in a newspaper of general circulation.
3. Approve amendments to the municipal code as outlined in Section 4 of this ordinance
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.
SECTION 4. Municipal Code Amendment
97 1. Add New Section 15.01.035 – Very High Fire Hazard Severity Zone Adopted The city does adopt the map of the very high fire hazard severity zone, as designated by the California Board of Forestry and Fire Protection with all relevant amendments thereto. The map shall be maintained on file with the office of the City Clerk, City Hall, 4477 Main Street, and at Shasta Lake Fire Protection District, 4126 Ashby Court.
PASSED, APPROVED, AND ADOPTED this 2nd reading on the 5th day of March 2024 by the following vote.
AYES:
NOES:
ABSENT:
__________________________
JANICE POWELL, Mayor
ATTEST:
____________________________
Charity Tatlow, Deputy City Clerk
98 Report and Recommendations 8.1
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager
DATE: March 5, 2024
SUBJECT: RESOLUTION APPROVING AN APPLICATION FOR FUNDING NOT TO EXCEED $2,500,000 AND THE EXECUTION OF A
GRANT AGREEMENT FROM THE COMMUNITY DEVELOPMENT
BLOCK GRANT MITIGATION RESILIENCE INFRASTRUCTURE
PROGRAM FOR THE DESIGN, ENVIRONMENTAL, AND
CONSTRUCTION OF A RAW WATER STORAGE TANK
FILE NO.:
RECOMMENDATION:
Staff recommends the City Council approve a resolution authorizing an application for funding not to exceed $2,500,000 and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State Community Development Block Grant (CDBG) Mitigation Resilience Infrastructure (MIT-RIP) Program for the design, environmental, and construction of a raw water storage tank at the Fisherman’s Point Water Treatment Plant.
BACKGROUND
In response to the California wildfires of 2018, resulting in the Carr, Mendocino Complex, Camp, and Woolsey Fires, on January 6, 2021, the U.S. Department of Housing and Urban Development (HUD) released Federal Register Notice 86 FR 561 that allocated an additional $64,907,000 of Community Development Block Grant (CDBG) mitigation funds to the State of California. The California Department of Housing and Community Development (HCD) has dedicated approximately $40 million of those funds to create the Resilient Infrastructure Program (MIT-RIP). The purpose of the program is to assist local jurisdictions and tribal entities with mitigation-related infrastructure needs to 99 support risk reduction from the three primary hazards (wildfire, flooding, and earthquakes). The program prioritizes projects that benefit vulnerable and Low to Moderate-Income (LMI) populations as well as those located inside the Most Impacted and Distressed areas (MID).
HCD released a Notice of Funding Availability (NOFA) on November 14, 2023 for the 20172018 CDBG MIT-RIP program. The NOFA details the allocation of funding as follows:
The City of Shasta Lake, along with the City of Agoura Hills, City of Anderson, City of Calabasas, City of Chico, City of Gridley, City of Lakeport, City of Los Angeles, City of Oroville, City of Westlake Village, and qualified Tribal Entities are eligible to apply for the 20% Set Aside. Applications are first come, first served until all funds are expended, and no later than March 29, 2024. There is no limit to the number of Project Applications an Eligible Applicant can submit; however, there is a $2,500,000 cap on per-project funding.
Project Details
The City would like to apply for $2,500,000 in MIT-RIP funding for the design, environmental, and construction of a raw water storage tank at the Fisherman’s Point Water Treatment Plant. The City’s existing 170,000-gallon raw water storage tank is too small to buffer changes and/or interruptions in flow from the raw water pump station located at the base of Shasta Dam. The project would upsize the existing raw water storage tank with a new 1.6 Million-gallon tank, connecting to the future Centimudi water storage tank, and increasing water storage capacity to support firefighting activities in the occurrence of a wildfire. The total project cost to complete the raw water storage tank is estimated at $7.5 Million. The maximum MIT-RIP Program award of $2,500,000 would alleviate the cost burden, which could potentially be passed on to the ratepayers of our low-income community.
100
FISCAL IMPACT
No fiscal impact. If funding is awarded, a supplemental appropriation to the budget will be brought to the City Council for review and approval.
ATTACHMENTS
Resolution CC-2024-XX
DISTRIBUTION
City Council
101
Department of Housing and Community Development
Revised 02/03/23 2017/2018 CDBG MIT-PPS and MIT-RIP NOFA Resolution of the Governing Body
Applicants are required to use this Resolution in content and form.
RESOLUTION NO.__
A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE
EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS
THERETO FROM THE 2023-2024 FUNDING YEAR OF THE STATE CDBG
MITIGATION RESILIENCE INFRASTRUCTURE (MIT-RIP) PROGRAM
BE IT RESOLVED by the of the of [ENTER
JURISDICTION NAME]_______________________________________ as follows:
SECTION 1:
The has reviewed and hereby approves the submission to
the State of California of one or more application(s) in the aggregate amount, not to exceed, of $______________ for the following CDBG-MIT activities, pursuant to the 2017/2018 CDBG MIT-PPS, and MIT-RIP NOFA:
List activities and amounts (activity totals should include Activity Delivery dollars and General Administration associated with the activity)
Activity (Infrastructure Project) Dollar Amount Being Requested for the Activity
$
$
$
$
SECTION 2:
The acknowledges compliance with all state and federal public participation requirements in the development of its application(s).
SECTION 3:
The hereby authorizes and directs the (ENTER TITLE OF DESIGNATED OFFICIAL) ___________________, or designee*, to execute and deliver all applications and act on the behalf in all matters pertaining to all such applications.
No.
NAME
102
Revised 02/03/23 2017/2018 CDBG MIT-PPS and MIT-RIP NOFA SECTION 4:
If an application is approved, the , or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and any and all subsequent amendments thereto with the State of California for the purposes of the grant.
SECTION 5:
If an application is approved, the , or designee, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.
* Important Note: If the designee is signing any application, agreement, or any other document on behalf of the designated official of the City/County, written proof of designee authority to sign on behalf of such designated official must be included with the Resolution, otherwise the Resolution will be deemed deficient and rejected.
Additionally, do not add limitations or conditions on the ability of the signatory or signatories to sign documents, or the Resolution may not be accepted. If more than one party’s approval is required, list them as a signatory. The only exception is for county counsel or city attorney to approve as to form or legality or both, IF such approval is already part of the standard city/county signature block as evidenced by the signed Resolution itself. Inclusions of additional limitations or conditions on the authority of the signer will result in the Resolution being rejected and will require your entity to issue a corrected Resolution prior to the Department issuing a Standard Agreement.
Department of Housing and Community Development
THE
THE
103
Department of Housing and Community Development
Revised 02/03/23 2017/2018 CDBG MIT-PPS and MIT-RIP NOFA PASSED AND ADOPTED at a regular meeting of the of
the of ___________ held on _______ by the following vote:
Instruction: Fill in all four vote-count fields below. If none, indicate “0” for that field.
AYES: _____ NOES: _____
ABSENT: _____ ABSTAIN: _____
__________________________________
Signature and Title
[ENTER GOVERNING BODY TYPE]
STATE OF CALIFORNIA
City/County of ________________
I, __________________, City/County Clerk of the City/County of ________________, State of California, do hereby attest and certify the foregoing Resolution to be a full, true and correct copy of a resolution duly passed and adopted on the date stated thereon and that said Resolution has not been amended, modified, repealed, or rescinded since the date of adoption and is in full force and effect as of this ___ day of _____________, 20____.
__________________________________________
Name, City/County Clerk of the City/County of
_____________________, State of California
By: _____________________________________
Signature and Title
Note: The attesting officer cannot be the person identified in the Resolution as the authorized signer.
20 104
Report and Recommendations 8.2
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
______________________________________________________________________ TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
Presentation By: Sanjay Gaur, Principal Consultant/Water Resources Economics
DATE: March 5, 2024
SUBJECT: CONSIDERATION OF UTILITY RATE STUDY RESULTS FOR THE
WATER ENTERPRISE FUND, AND AUTHORIZATION TO PROCEED
WITH THE PUBLIC NOTIFICATION AND SETTING A PUBLIC HEARING
FOR THE ADOPTION OF NEW WATER UTILITY RATES
FILE NO.: W-100-755-_____
RECOMMENDATION
Staff recommends that City Council adopt a resolution accepting the results of the Water Utility Rate Study report completed by Water Resources Economics (WRE), direct staff to prepare notification of the proposed rates in accordance with Proposition 218, and to set a public hearing for consideration of adoption of the proposed rates for May 21, 2024.
BACKGROUND
The City is dedicated to maintaining affordable rates by maintaining lean staffing levels and utilizing reserves when necessary. However, similar to other utilities such as wastewater, electricity, and gas, the expenses associated with purchasing, pumping, treating, and delivering water, as well as maintaining the water system infrastructure, are continually increasing. To mitigate the impact on water utility customers, the City has actively pursued grant funding for essential capital projects. Recently, the City secured over $6.3 million in grants to construct a new water tank at Centimudi. As a result, the City has not increased rates on our customers since 2021, even though inflation has increased 18% during the three-year period. Failure to adjust rates could lead to a deficit in the water fund by 2026, necessitating support from the General Fund, potentially resulting in cuts to vital services like law enforcement and parks.
Over the past few months, the City has conducted a thorough analysis of its water costs, revenues, and rates, engaging independent financial experts for an accurate assessment of 105
water service costs and their impact on customer bills. Several factors have led to proposed adjustments in water rates and charges:
• Transition from a tiered water rate system to a uniform water rate as authorized by the City Council.
• Increase in the fixed revenue percentage from 46% to 55%. • Rising unfunded regulatory costs to meet federal and state compliance mandates include, but are not limited to, U.S. Environmental Protection Agency’s Lead and Copper Rule Revisions, where water suppliers are required to prepare and maintain an inventory of service line materials by October 16, 2024. Section 7584 of the California Code of Regulations requires that each public water system have a crossconnection control program by July 1, 2025. UCMR5 testing completion by January 2025 with an increase of base unit rates of 5.9% with a nominal increase in standard fees and surcharges on all samples at Pace Analytical Laboratory effective January 1, 2024. General operating supplies such as chemicals, reagents, analytical equipment services, replacement parts, and maintenance services have increased exponentially.
• Planned expenditure of $11 million over the next five years for capital projects addressing aging infrastructure, tank maintenance, and the addition of a new raw water tank at the City’s Water Treatment Plant. Improvements to the City’s distribution system include the replacement of water meter transmitters (city-wide), aging pressure-reducing valves, and aging water distribution mains. • Increased rates and charges are needed to cover the water system’s fixed costs, which do not vary with water sales.
• The increased rates fund capital investment projects that maintain system reliability and water quality.
• Establishment of prudent long-term capital reserves aligned with industry standards. • Escalating wholesale water costs and unpredictable water supply, with the City relying entirely on Shasta Lake water due to the absence of groundwater The City remains committed to providing reliable and safe drinking water from source to tap.
Recognizing that rate increases may pose financial challenges for some customers, various assistance programs such as Lifeline rates, SHHIP, SHARES, and LiHEAP are available.
Customers can inquire about these programs by contacting our customer service staff at 530- 275-7400.
The City of Shasta Lake (City) is subject to the California Water Code and Proposition 218 and therefore is required by law to charge its customers only what is necessary to provide water services.
Summary of proposed rate increases:
The City’s proposed water rate structure includes the following changes:
• Rate revenue adjustments of 25% in FY 2025 and 6% annually from FY 2026 through FY 2029
• Lifeline program discount of $4 per customer per month, applied on the monthly service charge
• Uniform consumption charges per hcf of water use for all customer classes • Increasing fixed revenue recovery percentage from 45% to 54% for financial stability 106
• Drought rates based on six drought stages from the City’s Water Shortage Contingency Plan to recover lost revenue during periods of government-mandated usage cutbacks
• Pass-through water supply surcharges to recover additional costs associated with purchasing ACID and McConnell water during constrained water supply years Monthly Service
Charges Current Effective 7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
Lifeline $31.08 $40.29 $42.95 $45.77 $48.76 $51.93
5/8" $31.08 $44.29 $46.95 $49.77 $52.76 $55.93
1" $70.45 $108.89 $115.43 $122.36 $129.71 $137.50
1.5" $136.06 $216.55 $229.55 $243.33 $257.93 $273.41
2" $214.79 $345.75 $366.50 $388.49 $411.80 $436.51
3" $398.52 $647.23 $686.07 $727.24 $770.88 $817.14
4" $660.97 $1,077.89 $1,142.57 $1,211.13 $1,283.80 $1,360.83 6" $1,317.12 $2,154.57 $2,283.85 $2,420.89 $2,566.15 $2,720.12 8" $2,104.51 $3,446.57 $3,653.37 $3,872.58 $4,104.94 $4,351.24 10" $3,810.49 $6,245.90 $6,620.66 $7,017.90 $7,438.98 $7,885.32 12" $5,647.71 $9,260.58 $9,816.22 $10,405.20 $11,029.52 $11,691.30 Monthly Private Fire
Charges Current Effective 7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
2" or Less $5.53 $16.93 $17.95 $19.03 $20.18 $21.40
3" or Less $16.06 $46.17 $48.95 $51.89 $55.01 $58.32
4" or Less $34.22 $96.60 $102.40 $108.55 $115.07 $121.98 6" or Less $99.42 $277.62 $294.28 $311.94 $330.66 $350.50 8" or Less $211.86 $589.82 $625.21 $662.73 $702.50 $744.65 10" or Less $381.00 $1,059.43 $1,123.00 $1,190.38 $1,261.81 $1,337.52 12" or Less $615.41 $1,710.30 $1,812.92 $1,921.70 $2,037.01 $2,159.24 Consumption Charges
($/hcf) Current Effective 7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
Residential
Tier 1 $2.44 $2.85 $3.03 $3.22 $3.42 $3.63
Tier 2 $2.79 $2.85 $3.03 $3.22 $3.42 $3.63
Tier 3 $3.50 $2.85 $3.03 $3.22 $3.42 $3.63
Lifeline
Tier 1 $1.94 $2.85 $3.03 $3.22 $3.42 $3.63
Tier 2 $2.79 $2.85 $3.03 $3.22 $3.42 $3.63
Tier 3 $3.50 $2.85 $3.03 $3.22 $3.42 $3.63
Multi-Family & Mobile $2.58 $2.85 $3.03 $3.22 $3.42 $3.63 Commercial & Industrial $2.63 $2.85 $3.03 $3.22 $3.42 $3.63 Comm. Irr. & Govt. $2.86 $2.85 $3.03 $3.22 $3.42 $3.63
Schools $3.07 $2.85 $3.03 $3.22 $3.42 $3.63
107
Drought Rates Effective
7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
Stage 1 - 10% Reduction $0.32 $0.34 $0.37 $0.40 $0.43
Stage 2 - 20% Reduction $0.72 $0.77 $0.82 $0.87 $0.93
Stage 3 - 30% Reduction $1.23 $1.31 $1.39 $1.48 $1.57
Stage 4 - 40% Reduction $1.90 $2.02 $2.15 $2.28 $2.42
Stage 5 - 50% Reduction $2.85 $3.03 $3.22 $3.42 $3.63
Stage 6 - 60% Reduction $4.28 $4.54 $4.82 $5.11 $5.42
Pass-Through Supply Surcharges Effective
7/1/2024
Constrained Year Water Supply
McConnell Water Surcharge $0.17
ACID Water Surcharge $0.24
Combined Surcharge $0.41
The Council has the following alternatives to consider:
1. Provide staff with direction to implement the Proposition 218 noticing process for holding a public hearing on May 21, 2024 on recommended changes to the Water utility rates; or
2. Provide alternate direction to staff.
FISCAL IMPACTS:
There is no fiscal impact for moving forward with a Prop 218 Public Hearing. There may be a fiscal impact depending on the outcome of the ballots.
ATTACHMENTS
2024 Water Rate Study (Water Resources Economics)
DISTRIBUTION
City Council
City Attorney
Finance Department
108
RESOLUTION CC-2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE ACCEPTING
THE RESULTS OF THE WATER UTILITY RATE STUDY COMPLETED BY WATER
RESOURCES ECONOMICS DIRECT STAFF TO PREPARE PUBLIC NOTIFICATION OF THE PROPOSED RATES IN ACCORDANCE WITH PROPOSITION 218, AND TO SET A PUBLIC HEARING FOR CONSIDERATION OF ADOPTION OF THE PROPOSED RATES ON MAY 21, 2024
WHEREAS, Water Resources Economics were engaged by the City for the completion of the 2024 Water Rate Study; and
WHEREAS, Water Resources Economics has completed the 2024 Water Rate Study; and WHEREAS, the City Council accepts the results of the 2024 Water Rate Study Update; and WHEREAS, prior to implementing the water rates, the City must prepare public notification of the proposed rates in accordance with Proposition 218 and set a public hearing for consideration of the adoption of the proposed rates.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Shasta Lake hereby accepts the results of the 2024 Water Rate Study completed by Water Resources Economics, directs staff to prepare public notification of the proposed rates in accordance with Proposition 218, and sets a public hearing for consideration of the adoption of the proposed rates on May 21, 2024.
PASSED, APPROVED, AND ADOPTED this 5th day of March 2024, by the following vote:
AYES:
NOES:
ABSENT:
_____
JANICE POWELL, Mayor
ATTEST:
_______________________________
CHARITY TATLOW, Deputy City Clerk
109
City of Shasta Lake
2024 Water Rate Study
Draft Report – February 28, 2024
Prepared by: Water Resources Economics, LLC
110
This page intentionally left blank
111
Water Resources Economics
February 28, 2024
Jessaca Lugo
City Manager
City of Shasta Lake
4477 Main Street
Shasta Lake, CA 96019
Subject: City of Shasta Lake 2024 Water Rate Study – Draft Report Dear Ms. Lugo,
Water Resources Economics, LLC is pleased to submit this Draft 2024 Water Rate Study Report to the City of Shasta Lake. This draft report documents the results and recommendations of the City’s water rate study. The overall goal of the study was to develop an updated five-year schedule of water rates that will sufficiently fund the City’s expenses, provide financial sustainability, and comply with costof-service principles and Proposition 218 requirements.
Please note that this is a draft report summarizing the key discussion and decision points for the purposes of the City Council meeting on March 5, 2024. A more detailed and comprehensive final report will be provided to City staff for review prior to the City’s 45-day notice of its Proposition 218 Public Hearing for the water rate study.
Sincerely,
Sanjay Gaur
Principal Consultant
112
City of Shasta Lake 2024 Water Rate Study
Water Resources Economics
TABLE OF CONTENTS
1. Water Rate Study – Draft Report.............................................................................................. 1
1.1 System Overview .......................................................................................................................... 1
1.2 Rate Study Overview .................................................................................................................... 1
1.3 Legal Requirements...................................................................................................................... 1
1.4 Rate-Setting Methodology ........................................................................................................... 2
1.5 Additional Information and Disclaimers....................................................................................... 2
1.6 Current Water Rates..................................................................................................................... 3
1.7 Financial Plan ................................................................................................................................ 4
1.8 Cost-of-Service Analysis................................................................................................................ 8
1.9 Proposed Water Rates.................................................................................................................. 9 TABLES
Table 1-1: Current Monthly Service Charges............................................................................................ 3 Table 1-2: Current Monthly Private Fire Charges..................................................................................... 3 Table 1-3: Current Consumption Charges................................................................................................ 4 Table 1-4: Current Reserve Policy............................................................................................................. 5 Table 1-5: Proposed Revenue Adjustments and Debt Issuances............................................................. 7 Table 1-6: Proposed 5-Year Rate Schedule (Monthly Service Charges)................................................. 10 Table 1-7: Proposed 5-Year Rate Schedule (Monthly Private Fire Charges).......................................... 10 Table 1-8: Proposed 5-Year Rate Schedule (Consumption Charges) ..................................................... 10 Table 1-9: Residential Customer Impacts at Various Usage Levels........................................................ 11 Table 1-10: Proposed Water Supply Cost Surcharges............................................................................ 11 Table 1-11: Proposed Drought Rates by Stage....................................................................................... 12 Table 1-12: Residential Drought Impacts............................................................................................... 12
FIGURES
Figure 1-1: Projected Fund Balances (Status Quo Financial Plan)............................................................ 5 Figure 1-2: Projected Debt Coverage (Status Quo Financial Plan)........................................................... 6 Figure 1-3: Projected Fund Balances (Proposed Financial Plan) .............................................................. 7 Figure 1-4: Projected Debt Coverage (Proposed Financial Plan).............................................................. 8 113
City of Shasta Lake 2024 Water Rate Study
1 1. WATER RATE STUDY – DRAFT REPORT
1.1 SYSTEM OVERVIEW
The City of Shasta Lake (City) provides water service to approximately 4,000 metered connections, including residential, multi-family residential, and non-residential customers (commercial, industrial, irrigation, government, schools). The City’s water utility enterprise serves a population of approximately 10,000 residents.
The water system consists of a water treatment plant (the Fisherman’s Point Water Treatment Plant), approximately 60 miles of transmission and distribution pipelines, and nine storage tanks (one for raw water; eight for potable water). The City’s water supply sources include Central Valley Project (CVP), Anderson-Cottonwood Irrigation District (ACID), and the McConnell Foundation (McConnell).
CVP water, which is the City’s main source of water supply, requires use of pump stations and transmission pipelines owned by the US Bureau of Reclamation (USBR).
1.2 RATE STUDY OVERVIEW
Public retail water agencies in California typically conduct a water rate study at least once every five years to ensure that customers are appropriately charged for water service. The City’s currently adopted rates were established during the prior rate study, which was conducted in 2016, spanning fiscal year (FY) 2017 through FY 2021.
The City engaged Water Resources Economics (WRE) in 2023 conduct an updated water rate study, with the following objectives in mind:
• Develop a five-year water rate schedule for implementation in FY 2025 through FY 2029 • Evaluate the impact of a uniform volumetric rate for water usage • Identify amount of revenue required to maintain financial sufficiency • Conduct an updated cost-of-service analysis
• Develop drought rates and/or surcharges to implement in years with constrained water supply and government-mandated usage cutbacks
1.3 LEGAL REQUIREMENTS
Legal considerations relating to retail water rates in California focus heavily on Proposition 218, which was enacted in 1996 and is now reflected in Article XIII C and Article XIII D of the California Constitution. Proposition 218 states that “property related fees and charges” (which include retail water rates) may not exceed the proportional cost of providing the service to the customer and may not be used for any purpose other than providing said service. The practical implication is that public retail water agencies in California must demonstrate a sufficient nexus between the costs incurred by 114
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2 the agency to provide water service and the rates charged to customers. The primary means by which retail water agencies address this requirement is by conducting a “cost-of-service analysis.” Proposition 218 also affects the rate adoption process by requiring agencies to hold a public hearing to adopt rates. The agency must mail public hearing notices to all customers no fewer than 45 days prior to the public hearing. The public hearing notices must clearly show all proposed rate changes, provide information on the public hearing date/time/location, and provide instructions on how customers may protest the proposed rate changes. If a majority of customers submit a protest, the proposed rate changes cannot be adopted.
1.4 RATE-SETTING METHODOLOGY
This study was conducted using industry-standard methodology outlined by the American Water Works Association (AWWA) in its Manual of Water Supply Practices M1: Principles of Water Rates, Fees and Charges, Seventh Edition (M1 Manual). The overall rate study process includes the following steps:
1. Financial Plan: Annual revenues and expenses are projected over the rate-setting period to determine the magnitude of rate increases needed to maintain financial sufficiency. Financial policies, such as reserve targets, are also evaluated and updated if necessary.
2. Cost-of-Service Analysis: Costs are allocated to customers in proportion to use of and burden on the water system. The overall goal is to establish a robust nexus between the costs incurred by an agency and the rates charged to customers, as required by Proposition 218.
3. Rate Design: The existing rate structure is evaluated, and potential changes are identified. A multi-year proposed rate schedule is then calculated directly from the results of the financial plan and cost-of-service analysis.
4. Rate Study Documentation: A rate study report is developed to document the proposed rate development process. This provides transparency and enhances legal defensibility in light of Proposition 218 requirements. This document serves as the report for this rate study.
1.5 ADDITIONAL INFORMATION AND DISCLAIMERS
This report summarizes the data, analyses, processes, and results of the City’s water rate study. Some important information to keep in mind when reading the report includes the following:
• All study projections are based on the best available data as of February 2024. • All table values are rounded to the nearest digit shown unless stated otherwise. However, all calculations are based on precise values. Attempting to manually recreate the calculations described in this report from the values displayed in tables may therefore produce slightly different results.
• All current and proposed rates and charges in this report are shown on a monthly basis. 115
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3 1.6 CURRENT WATER RATES
The City’s current water rate structure includes a monthly service charge based on meter size, a monthly private fire charge (for customers with private fire service) based on fire line size, and a consumption charge based on units of water usage. One unit of water is equal to 100 cubic feet (hcf).
The consumption charge for the Residential and Lifeline customer classes are based on an inclining three-tiered structure. Customers that qualify for the City’s Lifeline assistance program currently receive a discounted Tier 1 rate, for usage up to 10 hcf.
The current water rates and rate structure were effective starting on July 1, 2020 or the beginning of FY 2021. These rates were developed in the City’s most recent water rate study, which was conducted in 2016.
Table 1-1 shows the current monthly service charges; Table 1-2 shows the current monthly private fire charges; and Table 1-3 shows the current consumption charges for all customer classes.
Table 1-1: Current Monthly Service Charges
Line Current Monthly Service Charges As of 7/1/2020
1 5/8" Meter $31.08
2 1" Meter $70.45
3 1.5" Meter $136.06
4 2" Meter $214.79
5 3" Meter $398.52
6 4" Meter $660.97
7 6" Meter $1,317.12
8 8" Meter $2,104.51
9 10" Meter $3,810.49
10 12" Meter $5,647.71
Table 1-2: Current Monthly Private Fire Charges
Line Current Monthly Private Fire Charges As of 7/1/2020 1 2" or Less $5.53
2 3" or Less $16.06
3 4" or Less $34.22
4 6" or Less $99.42
5 8" or Less $211.86
6 10" or Less $381.00
7 12" or Less $615.41
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4 Table 1-3: Current Consumption Charges
Line Current Consumption Charges ($/hcf) As of 7/1/2020 1 Residential
2 Tier 1 (0-10 hcf) $2.44
3 Tier 2 (11-20 hcf) $2.79
4 Tier 3 (>20 hcf) $3.50
5 6 Lifeline
7 Tier 1 (0-10 hcf) $1.94
8 Tier 2 (11-20 hcf) $2.79
9 Tier 3 (>20 hcf) $3.50
10 11 Multi-Family & Mobile $2.58
12 Commercial & Industrial $2.63
13 Commercial Irr. & Govt. $2.86
14 Schools $3.07
1.7 FINANCIAL PLAN
WRE worked closely with City staff and the City’s Ad Hoc Committee (a subcommittee of the City Council) to determine the financial plan scenario that best suits the City’s needs. The results and recommendations of the water rate study are driven by the City’s financial performance, input from City staff, and feedback and direction from the Ad Hoc Committee.
FACTORS AFFECTING FINANCIAL PERFORMANCE
The water system’s financial performance is driven by the ability of the current water rates to meet the City’s funding needs. To maintain financial sufficiency, water rates must fully fund operations and maintenance (O&M) costs, capital improvement plan (CIP) expenditures, and any relevant financial policies, which typically include target reserve balances and debt coverage.
The key factors affecting financial performance include:
• No water rate increases since FY 2021: the current water rates were adopted in FY 2021, which means that rates are not keeping pace with inflating costs. Based on the Consumer Price Index (CPI), prices have increased by approximately 18% since 2021. The water enterprise’s revenues at current rates are just enough to cover O&M expenses and debt service, with no additional funds available to fund CIP needs or reserve balances to meet policy targets.
• Substantial capital needs on the planning horizon: between FY 2024 and FY 2029, the total CIP for the water system totals approximately $18.8 million. After netting out confirmed $6.0 million worth of grant funding, the City’s water enterprise must fund $12.8 million over six years. The water enterprise’s current revenues cannot fund any CIP; the City must increase rate revenues to fund critical CIP projects over the planning horizon. 117
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5 • Reserve policy targets: the City’s reserve policy, shown in Table 1-4, includes targets for an operating reserve (to maintain cash on hand to meet short-term cash flow imbalances) and a capital projects reserve (to maintain cash on hand to execute CIP projects). The projected fund balances at the end of FY 2024 are just below target; fund balances will be depleted without future rate increases.
Table 1-4: Current Reserve Policy
Line Current Reserve Policy Policy Targets FY 2024
1 Reserve Targets
2 Operating Reserve Target 25% of O&M expenses $912,987 3 Capital Projects Reserve Target 1 year of average CIP $1,137,965 4 Combined Target $2,050,952
5 6 Projected Reserve Levels $1,949,566
STATUS QUO FINANCIAL PLAN
The first step in evaluating the City’s financial performance is to develop a “status quo financial plan,” which is the scenario in which the City does not increase its water rate revenues. This exercise is to determine whether the City’s current water rates are sufficient to meet key financial performance metrics. This section shows two important metrics: fund balance and debt coverage.
Figure 1-1 shows the projected fund balances under the status quo scenario. The green bars represent the projected water fund balance, and the black line represents the reserve target. In this scenario, the City will not meet its reserve targets, and funds will be completely depleted in FY 2026.
Figure 1-1: Projected Fund Balances (Status Quo Financial Plan) 118
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6 Figure 1-2 shows the projected debt coverage under the status quo financial plan. The blue line represents the projected debt coverage, and the dotted black line represents the required debt coverage for the City’s debt service. If the City does not meet its debt coverage requirements, it is considered to be in technical default1. Under the status quo scenario, the City will be in technical default starting in FY 2027.
Figure 1-2: Projected Debt Coverage (Status Quo Financial Plan)
PROPOSED REVENUE ADJUSTMENTS AND DEBT ISSUANCES
Overall annual increases in water rate revenues resulting from rate increases are referred to as “revenue adjustments.” WRE worked with City staff and the Ad Hoc Committee to determine the most appropriate financial plan scenario, which is shown in Table 1-5. The proposed financial plan scenario includes five years of revenue adjustments, which are required to maintain financial sufficiency, and one debt issuance in FY 2026 to fund the tank replacement project in the City’s CIP.
Since the City has not had a water rate increase since FY 2021, the first year of revenue adjustments in FY 2025 is higher to realign water rate revenues with cost escalations that occurred over the past several years. The proposed revenue adjustments in the latter four years, between FY 2026 and FY 2029, are designed to keep pace with ongoing O&M and CIP costs. 1 Although the calculated debt coverage for FY 2024 is below the required debt coverage, this is not due to technical default. Rather, this is due to the City’s early repayment of its CalPERS Loan in that year. 119
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7 Table 1-5: Proposed Revenue Adjustments and Debt Issuances Line Fiscal Year Revenue
Adjustments Debt Issuance
1 FY 2025 25.0% $0
2 FY 2026 6.0% $6,122,449
3 FY 2027 6.0% $0
4 FY 2028 6.0% $0
5 FY 2029 6.0% $0
PROPOSED FINANCIAL PLAN
The proposed financial plan applies the revenue adjustments and debt issuance, shown in Table 1-5, to reevaluate the water enterprise’s financial performance.
Figure 1-3 shows the projected fund balances under the proposed financial plan scenario. The fund balance for FY 2026 is high due to the inclusion of debt proceeds, which will be drawn down in latter years due to CIP expenditures. Under this scenario, the City will meet its reserve targets in the latter four years.
Figure 1-3: Projected Fund Balances (Proposed Financial Plan) Figure 1-4 shows the projected debt coverage in the proposed financial plan scenario; the City will meet its debt coverage requirements in all years of the study (see earlier footnote about FY 2024).
The calculated debt coverage decreases in FY 2026 due to the proposed debt issuance but is still sufficiently above the required coverage of 125%.
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8 Figure 1-4: Projected Debt Coverage (Proposed Financial Plan)
1.8 COST-OF-SERVICE ANALYSIS
A cost-of-service analysis is a technical process used to determine the cost of providing water service to the City’s customers based on each customer’s use of and burden on the water system. The costof-service analysis is the basis of the nexus between the costs incurred by the utility to provide water service and the water rates charged to customers, which is a requirement of Proposition 218.
COST-OF-SERVICE METHODOLOGY
The cost-of-service methodology is based on industry standards set forth by AWWA in its M1 Manual; this rate study utilizes the base-extra capacity method. The overall goal of the cost-of-service analysis is to develop “unit costs,” which provide the basis from which proposed rates are directly calculated from. Note that although the study period spans five years, the cost-of-service analysis is limited to a single representative year referred to as the “test year.” The test year in this study is FY 2024. The key steps in conducting a water cost-of-service analysis are outlined below:
• Revenue requirement determination: The total rate revenue requirement for the test year is determined based on the results of the proposed financial plan and divided into primary subcomponents (operating, capital, etc.). • Cost functionalization: Operating and capital costs are evaluated and assigned to “functional categories” in the water system (e.g., customer service, groundwater wells, distribution, etc.).
This provides a proportional breakdown of system costs by functional category. • Revenue requirement allocation to cost causation components: Functionalized costs are allocated to “cost causation components” (e.g., water supply, base delivery, max day delivery, etc.), which is used to attribute customers’ use of the system to the City’s incursion of costs. 121
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9 • Unit cost development: The rate revenue requirement allocation for each individual cost causation component is divided by the appropriate units of service to establish unit costs for the test year. Unit costs provide the basis from which proposed rates are calculated.
1.9 PROPOSED WATER RATES
WRE worked closely with City staff and the Ad Hoc Committee to evaluate various rate structure alternatives and determine an appropriate water rate structure.
PROPOSED RATE STRUCTURE CHANGES
The proposed changes to the water rate structure were developed based on direction from the Ad Hoc Committee and include the following:
• Proposed uniform consumption charge: the City’s current consumption charge includes a three-tiered structure for Residential customers and a uniform consumption charge that varies by non-residential customer classes. A key objective of this study is to evaluate the impact of a uniform consumption charge, based on direction provided by the Ad Hoc Committee. The proposed water rate structure includes one uniform consumption charge for all customer classes.
• Proposed change to fixed revenue recovery: the City’s current water rate structure collects approximately 45% of its revenues via fixed charges (monthly service charges and monthly private fire charges). The Ad Hoc Committee provided direction to increase the fixed revenue recovery to approximately 54%, which would increase financial stability for the City’s water enterprise.
• Proposed change to Lifeline discount: the current Lifeline discount is applied to Tier 1 usage.
The proposed Lifeline discount is applied to the monthly service charge since the proposed rate structure does not have tiered rates. Additionally, this proposed change can help offset some affordability concerns due to increasing fixed revenue recovery. City staff and the Ad Hoc Committee recommended a discount of $4 per Lifeline customer per month; the costs of this program are funded via the General Fund. The Lifeline discount will stay at $4 per customer per month for all years of the study.
PROPOSED FIVE-YEAR WATER RATE SCHEDULE
The proposed five-year water rate schedules in this section of the report are based on the proposed rate structure changes, the updated cost-of-service analysis, and the proposed revenue adjustments for the five-year period. The rate schedule shows water rates that are proposed to be implemented from FY 2025 through FY 2029.
The proposed five-year rate schedule for monthly service charges, monthly private fire charges, and consumption charges is shown in Table 1-6, Table 1-7, and Table 1-8, respectively. 122
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10 Table 1-6: Proposed 5-Year Rate Schedule (Monthly Service Charges) Line Proposed Monthly Service Charges Effective
7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
1 Lifeline $40.29 $42.95 $45.77 $48.76 $51.93
2 5/8" Meter $44.29 $46.95 $49.77 $52.76 $55.93
3 1" Meter $108.89 $115.43 $122.36 $129.71 $137.50
4 1.5" Meter $216.55 $229.55 $243.33 $257.93 $273.41
5 2" Meter $345.75 $366.50 $388.49 $411.80 $436.51
6 3" Meter $647.23 $686.07 $727.24 $770.88 $817.14
7 4" Meter $1,077.89 $1,142.57 $1,211.13 $1,283.80 $1,360.83 8 6" Meter $2,154.57 $2,283.85 $2,420.89 $2,566.15 $2,720.12 9 8" Meter $3,446.57 $3,653.37 $3,872.58 $4,104.94 $4,351.24 10 10" Meter $6,245.90 $6,620.66 $7,017.90 $7,438.98 $7,885.32 11 12" Meter $9,260.58 $9,816.22 $10,405.20 $11,029.52 $11,691.30 Table 1-7: Proposed 5-Year Rate Schedule (Monthly Private Fire Charges) Line Proposed Monthly Private Fire Charges Effective
7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
1 2" or Less $16.93 $17.95 $19.03 $20.18 $21.40
2 3" or Less $46.17 $48.95 $51.89 $55.01 $58.32
3 4" or Less $96.60 $102.40 $108.55 $115.07 $121.98
4 6" or Less $277.62 $294.28 $311.94 $330.66 $350.50
5 8" or Less $589.82 $625.21 $662.73 $702.50 $744.65
6 10" or Less $1,059.43 $1,123.00 $1,190.38 $1,261.81 $1,337.52 7 12" or Less $1,710.30 $1,812.92 $1,921.70 $2,037.01 $2,159.24 Table 1-8: Proposed 5-Year Rate Schedule (Consumption Charges) Line Proposed Consumption Charges ($/hcf) Effective
7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
1 Residential $2.85 $3.03 $3.22 $3.42 $3.63
2 Multi-Family & Mobile $2.85 $3.03 $3.22 $3.42 $3.63
3 Commercial & Industrial $2.85 $3.03 $3.22 $3.42 $3.63 4 Commercial Irr. & Govt. $2.85 $3.03 $3.22 $3.42 $3.63 5 Schools $2.85 $3.03 $3.22 $3.42 $3.63
CUSTOMER IMPACTS
WRE evaluated the impact to the Residential customer class (which makes up approximately 79% of metered connections within the City’s water system) based on the proposed water rates in FY 2025.
Table 1-9 shows the impact to Residential customers with a 5/8” meter size at various usage levels.
The customer impacts are driven by several factors: the proposed change to a uniform consumption charge, the proposed change to the fixed revenue recovery percentage, and the updated cost-ofservice analysis. 123
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11 Table 1-9: Residential Customer Impacts at Various Usage Levels Line Residential Customer Impacts Billed
Usage (hcf)
Proposed
Bill
Current
Bill
Difference
($)
Difference
(%)
1 Very Low Use (10th percentile) 2 $49.99 $35.96 $14.03 39% 2 Low Use (25th percentile) 4 $55.69 $40.84 $14.85 36%
3 Median Use 7 $64.24 $48.16 $16.08 33%
4 Average Use 11 $75.64 $58.27 $17.37 30%
5 High Use (75th percentile) 14 $84.19 $66.64 $17.55 26% 6 Very High Use (90th percentile) 25 $115.54 $100.88 $14.66 15%
PROPOSED WATER SUPPLY SURCHARGES AND DROUGHT RATES
The City relies solely on imported water purchases from CVP, ACID, and McConnell to meet its customer water demand. However, these sources of supply are subject to cost increases during years with constrained water supply. This poses a financial risk for the City; constrained year costs can be double those of non-constrained years. The proposed water rate structure includes a water supply cost surcharge that can be implemented during constrained years when costs are increased, which is shown in Table 1-10.
The McConnell and ACID water supply cost surcharges are based on the maximum potential cost per acre-feet (AF) and maximum purchases in AF for each source of supply, based on guidance from City staff and the Ad Hoc Committee. These surcharges represent the maximum the City can charge in constrained years; the City has the discretion to implement lower surcharges dependent upon the actual constrained year costs.
Table 1-10: Proposed Water Supply Cost Surcharges
Line Water Supply Cost Surcharges Effective
7/1/2024
1 Constrained Year Water Supply
2 McConnell Water Surcharge $0.17
3 ACID Water Surcharge $0.24
4 Combined Surcharge $0.41
In addition to the risk of water supply cost increases during constrained years, the City also faces risks related to government-mandated cutbacks in water usage. The City’s Water Shortage Contingency Plan (WSCP) includes six stages of drought, which all require a different level of usage reduction from the City’s customers. When customers reduce their usage, the City’s rate revenues are directly impacted. Drought rates are a tool to recover lost consumption charge revenue during each stage of drought, which keeps the water enterprise financially sufficient even during periods of mandated usage cutbacks. Table 1-11 shows the proposed drought rates during each stage of drought as defined by the WSCP.
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12 The drought rates represent the maximum the City can charge its customers during each stage of drought. Drought rates are in addition to the City’s base consumption charge and are designed to recover lost revenue from usage cutbacks.
Table 1-11: Proposed Drought Rates by Stage
Line Drought Rates Effective
7/1/2024
Effective
7/1/2025
Effective
7/1/2026
Effective
7/1/2027
Effective
7/1/2028
1 Stage 1 - 10% Reduction $0.32 $0.34 $0.37 $0.40 $0.43 2 Stage 2 - 20% Reduction $0.72 $0.77 $0.82 $0.87 $0.93 3 Stage 3 - 30% Reduction $1.23 $1.31 $1.39 $1.48 $1.57 4 Stage 4 - 40% Reduction $1.90 $2.02 $2.15 $2.28 $2.42 5 Stage 5 - 50% Reduction $2.85 $3.03 $3.22 $3.42 $3.63 6 Stage 6 - 60% Reduction $4.28 $4.54 $4.82 $5.11 $5.42 Table 1-12 shows the Residential drought impacts for a customer with a 5/8” meter using 11 hcf during no drought conditions (11 hcf is the average monthly usage for a Residential customer in the City’s water system).
• During non-constrained years with no drought, this customer’s water bill is $75.64. • During non-constrained years during a Stage 2 drought, this customer’s water bill is $83.56 if they do reduce their water usage; this is an increase of $7.92. • If the same customer during a non-constrained year and Stage 2 drought does reduce their water usage by the 20% required by Stage 2, they will use approximately 9 hcf of water instead. With their reduced water usage, this customer’s water bill is $76.42, which is similar to their water bill during no drought. The proposed drought rates are designed to minimize impacts to customers that reduce their water according to the appropriate drought stage. • The last scenario shows the same customer during a constrained year and Stage 2 drought, with a 20% reduction in use. The water supply cost surcharge is added to the total water bill to recover higher costs related to constrained year supply. Their water bill will be $80.11.
Table 1-12: Residential Drought Impacts
Line Residential Drought Impacts
No Drought
(NonConstrained)
Stage 2 Drought
w/ No Reduction
(NonConstrained)
Stage 2 Drought
w/ 20%
Reduction (NonConstrained)
Stage 2 Drought
w/ 20%
Reduction
(Constrained)
1 Residential Meter Size 5/8" Meter 5/8" Meter 5/8" Meter 5/8" Meter 2 Monthly Usage (hcf) 11 11 9 9
3 4 Monthly Service Charge $44.29 $44.29 $44.29 $44.29
5 Consumption Charge $31.35 $31.35 $25.65 $25.65
6 Drought Rate $0.00 $7.92 $6.48 $6.48
7 Water Supply Cost Surcharge $0.00 $0.00 $0.00 $3.69
8 Total Water Bill $75.64 $83.56 $76.42 $80.11
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