CITY COUNCIL MEETING AGENDA November 18, 2025
CITY OF SHASTA LAKE
CITY COUNCIL
MEETING AGENDA
November 18, 2025
6:00 P.M.
Shasta Lake City Council Chambers
4488 Red Bluff Street Shasta Lake, CA 96019
Mayor: Pamelyn Morgan
Vice Mayor: Justin Jones
Council Members: Toni Coates, Dan Ringwelski, 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.gov/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
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
4.1 None
1 CITY COUNCIL MEETING AGENDA November 18, 2025
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 Regular Meeting of November 4, 2025. (pg. 5)
6.2 Payrolls: (pg. 7)
Period Ending: 11/08/2025 Paid Date: 11/14/2025 $190,274.63
6.3 Monthly Report of Investment Transactions: (pg. 9)
LAIF:
October $10,009,407.26
Chandler:
October $37,035,968.23
7.0 PUBLIC HEARINGS:
7.1 Public Hearing for discussion and possible action to adopt an Ordinance and approve a Resolution establishing new Wastewater Utility Rates. (pg. 13)
8.0 REGULAR AGENDA:
8.1 None
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 2 CITY COUNCIL MEETING AGENDA November 18, 2025
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 REGULAR MEETING
HELD TUESDAY, NOVEMBER 4, 2025, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 CALL TO ORDER – REGULAR MEETING:.
1.1 Mayor Morgan convened the regular meeting at 6:00 PM
1.2 Council Members present: Coates, Morgan, Jones, Ringwelski, Watkins
1.3 Pledge of Allegiance was led by Councilman Ringwelski
1.4 Invocation was led by Mayor Morgan
2.0 AWARDS & RECOGNITIONS:
2.1 Proclamation: Honoring our Veterans on Veterans Day with a Parade on November 8, 2025, presented to the Shasta Lake Lions Club.
3.0 PRESENTATIONS:
3.1 None
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
4.1 None
5.0 PUBLIC COMMENT:
Jim Mark, Shasta Lake resident
6.0 CONSENT AGENDA:
6.1 Minutes of the Regular Meeting of October 21, 2025.
6.2 Payrolls:
Period Ending: 10/25/2025 Paid Date: 10/31/2025 $189,115.49
6.3 Checks, E-payments, and wires:
9/25/2025 $2,043,226.67
6.4 Resolution CC-2025-71 accepting the Quarterly Cash and Investment Report for the Period Ending September 30, 2025.
Motion/Vote
By motion made/seconded (Watkins/Jones), and carried unanimously, the Consent Agenda, was approved.
7.0 PUBLIC HEARINGS:
5 7.1 Resolution CC-2025-72 upholding the Planning Commission action approving Use Permit 23-07 (7-11 Project / 1661 Cascade Blvd.
Applicant Presentations:
Mayor Morgan invited each of the applicants to present their application for appeal to the City Council. Each applicant was allowed up to 15 minutes for their presentation. One of the applicants was not present.
Public Comment
Jaskaran Sahota, community member
Peggy Kline, Shasta Lake resident
Gary Due, Shasta Lake resident
Jami Hoffman, community member
Anthony Blake, Shasta Lake resident
Cheryle Yednak, Shasta Lake resident, read into the record.
Barbara Lynn, Shasta Lake resident
Applicant Rebuttal:
Each applicant was allowed 5 minutes to provide follow-up comments and address points raised by other applicants and members of the public.
Motion/Vote:
A motion was made/seconded (Coates/Morgan).
Mayor Morgan called for a roll call vote.
By a vote of 5-0, the motion passed unanimously.
8.0 REGULAR AGENDA:
8.1 None
9.0 STAFF COMMENTS:
City Manager Jessaca Lugo provided an update on the new Waste Management pickup schedule.
The Veterans Parade will be on November 8th.
The Holiday Bazaar will be on November 15th.
Proposition 218 hearing for Wastewater Rates will be at the November 18th City Council meeting.
COSL Christmas tree lighting will be on Wednesday, December 3rd.
10.0 CITY COUNCIL COMMENTS AND REPORTS:
ADJOURNMENT:
With no further business, Mayor Morgan adjourned the meeting at 8:03 PM. ____________________________
CHARITY TATLOW, City Clerk
6 11/12/2025 7:55:46 AM Page 6 of 6
Payroll Check Register
City of Shasta Lake Report Summary
Pay Period: 10/26/2025-11/8/2025
Packet: PYPKT00681 - PE 11.08.2025
Payroll Set: City of Shasta Lake - 01
Type
2 Count
0 4,462.09
0.00 Regular Checks
Manual Checks
0 0.00
0 0.00
Amount
84 185,812.54
Total 86 190,274.63
Reversals
Voided Checks
Direct Deposits
7 8
Report and Recommendations 6.3
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
____________________________________________________________ TO: Mayor and City Council Members
FROM: Jason Peterson, Finance Manager
DATE: November 18, 2025
SUBJECT: INFORMATION ITEM – MONTHLY REPORTS OF INVESTMENT FOR THE PERIODS ENDING October 31, 2025
FILE NO.:
RECOMMENDATION
Staff recommends that the City Council receive a report of the Cash and Investment Report for the period ending October 2025.
BACKGROUND
Pursuant to the City of Shasta Lake’s Adopted Investment Policy and Government Code Section 53607, the Finance Director will submit a report of investment transactions to the City Council monthly.
Staff requests the City Council or the public to submit questions regarding the reports prior to the City Council Meeting to permit time to research the question.
FISCAL IMPACTS
There will be no fiscal impact as a result of this information item.
ATTACHMENTS
LAIF Statement
Chandler Investment Summary Report
External Link: Monthly Investment Reports (Full Report)
DISTRIBUTION
City Council
City Attorney
9 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
November 04, 2025
LAIF Home
PMIA Average Monthly
Yields
CITY OF SHASTA LAKE
FINANCE DIRECTOR
4477 MAIN STREET
SHASTA LAKE, CA 96019
Account Number: 98-45-868
October 2025 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
10/15/2025 10/14/2025 QRD 1785633 N/A SYSTEM 145,465.60 10/24/2025 10/24/2025 RW 1786202 1746823 JASON PETERSON -3,000,000.00 Account Summary
Total Deposit: 145,465.60 Beginning Balance: 12,863,941.66 Total Withdrawal: -3,000,000.00 Ending Balance: 10,009,407.26 10 MONTHLY ACCOUNT STATEMENT
City of Shasta Lake | Account #10203 | As of October 31, 2025 CHANDLER ASSET MANAGEMENT | chandlerasset.com
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.
Chandler Team:
For questions about your account, please call (800) 317-4747, or contact [email protected]
Custodian:
US Bank
11 City of Shasta Lake | Account #10203 | As of October 31, 2025 Execution Time: 11/04/2025 06:43:30 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747
PORTFOLIO SUMMARY
Portfolio Characteristics
Sector Allocation
Performance Review
Account Summary
Maturity Distribution
Top Issuers
Credit Quality*
Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (01/01/14)
City of Shasta Lake 0.34% 1.55% 4.66% 5.19% 5.71% 4.94% 2.03% 2.04% 1.94% Benchmark Return 0.34% 1.51% 4.28% 4.83% 5.29% 4.50% 1.65% 1.73% 1.59% Average Modified Duration 1.79
Average Coupon 4.07%
Average Purchase YTM 4.35%
Average Market YTM 3.86%
Average Credit Quality* AA
Average Final Maturity 2.15
Average Life 1.95
End Values as of
09/30/2025
End Values as of
10/31/2025
Market Value 37,239,949.86 37,368,633.15
Accrued Interest 288,437.60 287,068.34
Total Market Value 37,528,387.46 37,655,701.48
Income Earned 165,938.98 134,045.63
Cont/WD 0.00 0.00
Par 37,057,554.46 37,182,203.62
Book Value 36,900,484.28 37,035,968.23
Cost Value 36,708,034.61 36,838,338.31
United States 39.53%
FHLMC 9.78%
Federal Home Loan Banks 9.42%
Farm Credit System 2.11%
Bank of America Credit Card Trust 1.79%
PACCAR Inc 1.72%
John Deere Owner Trust 1.40%
Bank of America Corporation 1.35%
**Periods over 1 year are annualized.
Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index *The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 12 Report and Recommendations 7.1 Reviewed and Approved City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
DATE: November 18, 2025
SUBJECT: PUBLIC HEARING AND ADOPTION OF ORDINANCE AND
RESOLUTION ESTABLISHING NEW WASTEWATER UTILITY
RATES
FILE NO.: W-090-294-_
RECOMMENDATION
Staff recommends that the City Council hold a Public Hearing and, following this, if there is no majority protest, approve an ordinance to implement new Wastewater Utility rates starting on or after January 1, 2026.
BACKGROUND
At the September 2, 2025 meeting, the City Council of the City of Shasta Lake accepted the wastewater utility rate study completed by Water Resources Economics and directed staff to prepare a public notification in accordance with Proposition 218 of the proposed rates and set the public hearing for consideration of adoption on November 18, 2025.
The City complied with Proposition 218 provisions by notifying customers and property owners about the proposed wastewater utility rate increases, each customer received a direct mail notification. Additionally, in adherence to Proposition 218 guidelines, staff posted the notification and detailed information on the City's website to help customers understand the rate changes. The City has addressed numerous inquiries from customers, providing individualized responses to questions about how the rate adjustments will impact their monthly bill.
The Proposition 218 notice and public hearing process involves:
13 1. Mailing a notice of proposed rate increases to all customers and property owners at least 45 days prior to the public hearing on the Council’s proposed action to adjust rates. The notice must advise the property owners about the increase, the basis for the increase, the date/time of the public hearing at which the Council will act to set rates and the customers and property owner’s right to appear and be heard regarding the proposed increase.
2. Holding the public hearing referenced in the notice. At that hearing, the Council is required to review all written protests and hear verbal protests to the rate increase. If more than 50% of property owners protest, (one protest per property is allowed) then the rate increase cannot be adopted. If 50% or less of property owners protest the City Council may adopt the rate increase.
Protests can be submitted in writing to the close of the public hearing on November 18th.
The City Clerk will tally any submitted protests at the closing of the public hearing and include those counts in the record.
PROCEDURE:
1. Open the public hearing and receive any further protests and comments.
2. Close the public hearing and have the City Clerk tally the protests and consider the results.
3. If there is a majority protest (50% plus 1 of all customers), no further action will be taken.
4. If there is no majority protest, then Staff recommends that City Council introduce the attached ordinance to adopt the new wastewater utility fees.
FURTHER BACKGROUND REGARDING THE CITY’S WASTEWATER UTILITY AND PROPOSED RATES:
The City of Shasta Lake (City) retained Water Resources Economics, LLC (WRE) to undertake the necessary cost-of-service study and utility-rate analysis to prepare an updated rate adjustment recommendation for the Wastewater Utility Fund. The recommended rates take into consideration the utility's maintenance and operation, including costs such as electricity, supplies, replacement of equipment and infrastructure, personnel costs, and regulatory compliance.
The City Council last approved wastewater rate adjustments in April 2020. At that time, the Council approved rates as follows:
14 Necessity of Rate Adjustment
The City of Shasta Lake provides essential utility services that are funded solely through utility rates, not through property taxes or other general taxes. To maintain safe and reliable services, each utility enterprise fund must operate in a financially sustainable manner, with sufficient resources to prevent service disruptions caused by deferred maintenance or inadequate system capacity.
Since completing the $22 million upgrade to the Wastewater Treatment Facility in 2020, staff have worked diligently to fine-tune operations to ensure year-round discharge compliance into Churn Creek under the State of California's stringent regulations. While the Wastewater Utility has done well to manage costs effectively, several ongoing financial pressures must be addressed, including:
• Increasing environmental and regulatory compliance requirements related to effluent discharge and zinc mitigation;
• Rising costs for energy, chemicals, materials, equipment, and labor; • Significant investment needs for aging wastewater collection system infrastructure; • Ongoing debt service obligations associated with the 2020 facility improvements.
These fiscal challenges will continue to place upward pressure on service rates. To proactively address these issues and avoid large, unexpected rate increases in the future, the City proposes a gradual rate adjustment plan designed to ensure long-term financial stability and operational reliability.
In response to these needs, the City Council established a Wastewater Rate Ad Hoc Committee to work with staff and the rate consultant to develop a responsible five-year rate plan. The Committee met in public sessions on July 3 and August 13, 2025, to review key financial assumptions, including projected operating costs, capital program needs, debt service requirements, and current rate structures.
Several scenarios were evaluated. The “Status Quo” model would result in a default on debt service and a negative fund balance, potentially requiring support from the General Fund. A fully cash-funded capital plan would result in steep rate increases. To ensure Effective Effective Effective Effective Effective
User Class July 1, 2020 July 1, 2021 July 1, 2022 July 1, 2023 July 1. 2024 Residential Flat Rate per Unit $69.63 $72.35 $75.17 $78.03 $80.76 Residential Flat Rate per Unit-Lifeline $55.71 $57.88 $60.14 $62.42 $64.61 Efficiency Dwelling Flat Rate per Unit $39.69 $41.24 $42.85 $44.48 $46.03 Multi-Family Flat Rate per Unit $59.19 $61.50 $63.89 $66.33 $68.65 Non-Residential Rate Per SFEC* $69.63 $72.35 $75.17 $78.03 $80.76 Industrial Rate Per SFEC* $69.63 $72.35 $75.17 $78.03 $80.76 * Single Family Equivalancy Connection Charge
15 rates remain as affordable as possible while maintaining financial stability, the Committee recommended a debt-financed plan that involves a modest 5% annual rate increase over five years, beginning January 1, 2026.
To preserve adequate operational reserves, meet regulatory standards, and ensure longterm rate stability, it is appropriate for the City Council to consider adopting incremental Wastewater Utility rate adjustments. This measured approach will help maintain the financial integrity of the utility and avoid large rate spikes in the future.
The following table shows the proposed five-year rate increases for the Wastewater Utility.
The following table shows the proposed monthly bill impacts for different customer classes within the City’s service area. Single-family customers will see an increase of $0.55 per month starting on 1/1/26.
FISCAL IMPACTS:
Without implementing the proposed rates, essential infrastructure projects required for utility operations will be delayed, leading to potential reductions in service levels. By fiscal year 2027, the wastewater utility is projected to operate at a deficit and will require support from the general fund, potentially impacting services such as law enforcement, parks, and general services.
16 ATTACHMENTS
Ordinance ORD-2025-XX
Resolution CC-2025-XX
2025 Wastewater Rate Study (Water Resources Economics)
Public Hearing Notice
External Link: Shasta Lake Rate Study Report - Final
DISTRIBUTION
City Council
City Attorney
Finance Department
17 ORDINANCE ORD-2025-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
AMENDING CITY MUNICIPAL CODE SECTIONS FOR WASTEWATER RATES AND
CHARGES
The City of Shasta Lake City Council does hereby ordain that City of Shasta Lake Municipal Code Article V Section 13.16.580 and 13.16.590 are hereby amended to read as follows:
Section 1.
Article V. Rates and Charges
13.16.580 Rates and charges established—Minimum monthly sewer service charge.
Each premises connected to or required by this chapter to be connected to the wastewater system shall pay a monthly wastewater service charge per dwelling unit. The monthly service charge for a dwelling unit shall be determined by Resolution of the City Council.
13.16.590 Reserved.
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 take effect 30 days after the date of its second reading and posting pursuant to City Code.
I HEREBY CERTIFY that the foregoing Ordinance was introduced and read at a regular meeting of the City Council of the City of Shasta Lake held on the 18th day of November 2025.
PASSED, APPROVED, AND ADOPTED this 18th day of November, 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
18 RESOLUTION CC-2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
ADOPTING NEW WASTEWATER RATES AND FEES
WHEREAS, the City of Shasta Lake operates a municipal wastewater utility responsible for the collection, treatment, and disposal of wastewater to protect public health and the environment; and
WHEREAS, the City Council has received and reviewed a comprehensive Wastewater Rate Study prepared by Water Resources Economics, LLC, evaluating the adequacy of existing rates to meet current and projected operational, maintenance, and capital improvement costs; and
WHEREAS, the study concluded that rate adjustments are necessary to ensure the financial stability of the Wastewater Enterprise Fund and to maintain compliance with state and federal regulatory requirements; and
WHEREAS, in accordance with the requirements of Article XIII D of the California Constitution (Proposition 218), the City mailed written notice of the proposed rate adjustments to all affected property owners and customers at least 45 days prior to a duly noticed public hearing; and
WHEREAS, the City Council held a public hearing on November 18, 2025 to receive testimony and written protests concerning the proposed rates, and fewer than a majority of property owners or customers submitted written protests; and WHEREAS, the City Council finds the proposed rates to be necessary to recover the cost of providing wastewater service.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shasta Lake as follows:
1. The City Council hereby adopts the new wastewater rates and charges as set forth in Exhibit A, attached hereto and incorporated herein by reference.
2. The new rates shall be effective on or after January 1, 2026, and annually thereafter as provided in Exhibit A.
3. The City Manager, or designee, is authorized to take all necessary actions to implement the new wastewater rates, including providing notice to customers and updating the City’s Wastewater Rate Schedule.
4. This resolution shall take effect immediately upon its adoption. 19 PASSED, APPROVED, AND ADOPTED this 18th day of November, 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
20 Exhibit “A”
City of Shasta Lake
WASTEWATER RATE SCHEDULE
The following rates and compensation are fixed and established as the rates to be charged and collected by the city's wastewater department:
Customer Class
Effective
1/1/2026
Effective
1/1/2027
Effective
1/1/2028
Effective
1/1/2029
Effective
1/1/2030
Residential $81.31 $85.38 $89.65 $94.14 $98.85
Residential - Lifeline $65.05 $68.31 $71.73 $75.32 $79.09 Multi-Family Dwelling $81.31 $85.38 $89.65 $94.14 $98.85 Non-Residential (per SFEC) $81.31 $85.38 $89.65 $94.14 $98.85 Industrial (per SFEC) $81.31 $85.38 $89.65 $94.14 $98.85 * Single Family Equivalency Connection (SFEC) Charge
Footnote(s):
1. Residential accounts include single-family residences, mobile homes, multi-family, and accessory dwelling units (ADUs).
2. One SFEC equals one hundred seventy (170) gallons (per day (five thousand one hundred sixty-eight (5,168) gallons per month) of wastewater flow, which is the estimated flow from a typical single-family household.
3. Non-residential SFECs based on an average monthly water consumption for January, February and March, with a minimum charge of one SFEC.
4. Industrial accounts have the choice to: (1) To be billed based on the average monthly water consumption for January, February and March, with a minimum charge of one SFEC; or (2) install a flowmeter in the lateral and pay for one hundred (100) percent of the wastewater discharged with a minimum charge of one SFEC. 21