CITY COUNCIL MEETING AGENDA January 20, 2026
CITY OF SHASTA LAKE
CITY COUNCIL
MEETING AGENDA
January 20, 2026
6:00 P.M.
Shasta Lake City Council Chambers
4488 Red Bluff Street Shasta Lake, CA 96019
Mayor: Justin Jones
Vice Mayor: Greg Watkins
Council Members: Toni Coates, Pamelyn Morgan, Dan Ringwelski
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 January 20, 2026
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 January 6, 2026. (pg. 5)
6.2 Payrolls: (pg. 8)
Period Ending: 1/03/2026 Paid Date: 1/09/2026 $189,074.74
6.3 Monthly Report of Investment Transactions: (pg. 9)
LAIF:
December $12,009,407.26
Chandler:
December $36,271,727.83
6.4 Discussion and possible action to approve the second reading of an Ordinance amending Chapter 5.05, “Regulation of Commercial Cannabis Activities”. (pg. 13)
6.5 Discussion and possible action to approve the second reading of an Ordinance amendment to Chapter 17.10 “Cannabis Land Use”. (pg. 29)
7.0 PUBLIC HEARINGS:
7.1 None
8.0 REGULAR AGENDA:
8.1 Discussion and possible action to approve a Resolution appointing three members to the Planning Commission for a term expiring December 2030. (pg. 39) 2 CITY COUNCIL MEETING AGENDA January 20, 2026
8.2 Discussion and possible action to approve a Resolution amending Purchasing Threshold Limits pursuant to Municipal Code Chapter 2.32 Purchasing System. (pg. 49)
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 as scheduled on Charter Channel 181.
Videos of meetings are also available through the City website: www.cityofshastalake.gov 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, JANUARY 6, 2026, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Mayor Jones convened the regular meeting at 6:00 PM
1.2 Council Members present: Coates, Morgan, Jones, Ringwelski, Watkins
1.3 The Pledge of Allegiance was led by Mayor Jones
1.4 Invocation was led by Mayor Jones
2.0 AWARDS & RECOGNITIONS:
2.1 Proclamation: “Law Enforcement Appreciation Day”, January 9, 2026
3.0 PRESENTATIONS:
3.1 None
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
4.1 None
5.0 PUBLIC COMMENT:
Susan Kuykendall, Shasta Lake resident
Tena Eisenbeisz, Shasta Lake resident
Jim Mark, Shasta Lake resident
6.0 CONSENT AGENDA:
6.1 Minutes of the Regular Meeting of December 16, 2025.
6.2 Payrolls:
Period Ending: 12/20/2025 Paid Date: 12/26/2025 $189,062.03
6.3 Checks, E-payments, and wires:
12/04/2025 $911,091.39
6.4 Resolution CC 2026-01 accepting the Water Treatment Plant Centrifuge Addition Project (Bid No. 2024-01) and authorizing the filing of a Notice of Completion. 5 6.5 Resolution CC 2026-02 to appoint a new board member and an alternate representative for the City of Shasta Lake Board of Directors of the Small Cities Organized Risk Effort (SCORE).
Motion/Vote:
By motion made/seconded (Morgan/Coates), and carried unanimously, the Consent Agenda was approved.
7.0 PUBLIC HEARINGS:
7.1 Public Hearing for Resolution CC 2026-03 adopting the 2025 Water Management Plan Update.
Public Comment
None
Motion/Vote:
A motion was made/seconded (Morgan/Coates), and carried unanimously, Item
7.1 was approved.
7.2 Public Hearing for Resolution CC 2026-04 approving the application submittal for fiscal year 2025, Notice of Funding Availability for the State of California Department of Housing and Community Development, Community Development Block Grant (CDBG).
Public Comment
Tena Eisenbeisz, Shasta Lake resident
Cheryle Yednak, Shasta Lake resident
Motion/Vote:
A motion was made/seconded (Morgan/Ringwelski), and carried unanimously, Item 7.2 was approved.
7.3 Public Hearing for an Ordinance and Resolution CC 2026-05 amending Chapter
5.05, “Regulation of Commercial Cannabis Activities” and adopting procedural guidelines and review criteria for the Retail Commercial Cannabis Business Permit Application Selection Process
Public Comment
Gary Due, Shasta Lake resident
Janice Powell, Shasta Lake resident
Cheryle Yednak, Shasta Lake resident
Tena Eisenbeisz, Shasta Lake resident
Motion/Vote:
A motion was made/seconded (Morgan/Coates), and carried unanimously, Item
7.3 was approved.
7.4 Public Hearing for an Ordinance amendment to Chapter 17.10 “Cannabis Land Use”.
6 Public Comment
Gary Due, Shasta Lake resident
Motion/Vote:
A motion was made/seconded (Jones/Morgan), and carried unanimously, Item 7.4 was approved.
8.0 REGULAR AGENDA:
8.1 Resolution CC 2026-06 approving the purchase and sale of energy and the environmental attributes of energy for 2028 and 2029.
Public Comment
None
Motion/Vote:
A motion was made/seconded (Watkins/Morgan), and carried unanimously, Item
8.1 was approved.
9.0 STAFF COMMENTS:
City Manager Jessaca Lugo gave the City Council an update on efforts to place a new RX drop box at a secure site.
The next blood drive will be held on January 13, 2026, from 2:30pm to 5pm.
The City published a Press Release for the closure on Lake Blvd. for the Centimudi Water Tank Construction Project.
10.0 CITY COUNCIL COMMENTS AND REPORTS:
ADJOURNMENT:
With no further business, Mayor Jones adjourned the meeting at 8:12 PM. ____________________________
CHARITY TATLOW, City Clerk
7 1/7/2026 9:11:42 AM Page 6 of 6
Payroll Check Register
City of Shasta Lake Report Summary
Pay Period: 12/21/2025-1/3/2026
Packet: PYPKT00694 - PE 1.03.2026
Payroll Set: City of Shasta Lake - 01
Type
1 Count
0 1,903.15
0.00 Regular Checks
Manual Checks
0 0.00
0 0.00
Amount
80 187,171.59
Total 81 189,074.74
Reversals
Voided Checks
Direct Deposits
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: January 20, 2026
SUBJECT: INFORMATION ITEM – MONTHLY REPORTS OF INVESTMENT FOR THE PERIODS ENDING December 31, 2025
FILE NO.:
RECOMMENDATION
Staff recommends that the City Council receive a report of the Cash and Investment Report for the period ending December 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
January 02, 2026
LAIF Home
PMIA Average Monthly
Yields
CITY OF SHASTA LAKE
FINANCE DIRECTOR
4477 MAIN STREET
SHASTA LAKE, CA 96019
Account Number: 98-45-868
December 2025 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
12/5/2025 12/5/2025 RD 1787604 1748225 JASON PETERSON 2,000,000.00 Account Summary
Total Deposit: 2,000,000.00 Beginning Balance: 10,009,407.26 Total Withdrawal: 0.00 Ending Balance: 12,009,407.26
1/2/26, 10:32 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 10 MONTHLY ACCOUNT STATEMENT
City of Shasta Lake | Account #10203 | As of December 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 CONFIDENTIAL | 2
City of Shasta Lake | Account #10203 | As of December 31, 2025 Execution Time: 01/05/2026 05:17:51 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 0.29% 1.12% 5.47% 5.47% 4.91% 4.87% 2.16% 2.14% 1.98% Benchmark Return 0.32% 1.12% 5.09% 5.09% 4.58% 4.48% 1.79% 1.85% 1.64% Average Modified Duration 1.84
Average Coupon 4.10%
Average Purchase YTM 4.34%
Average Market YTM 3.72%
Average Credit Quality* AA
Average Final Maturity 2.19
Average Life 1.99
End Values as of
11/30/2025
End Values as of
12/31/2025
Market Value 37,528,969.62 37,630,876.86
Accrued Interest 310,464.96 318,191.28
Total Market Value 37,839,434.58 37,949,068.13
Income Earned 111,064.91 156,836.08
Cont/WD 0.00 0.00
Par 37,273,389.53 37,399,293.19
Book Value 37,145,106.44 37,271,727.83
Cost Value 36,971,733.92 37,103,915.07
United States 39.78%
FHLMC 9.42%
Federal Home Loan Banks 7.77%
First American Govt Oblig Fund 2.63%
Farm Credit System 2.10%
Bank of America Credit Card Trust 1.78%
PACCAR Inc 1.71%
Walmart Inc. 1.34%
**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 6.4
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
DATE: January 6, 2026
SUBJECT: SECOND READING OF AN ORDINANCE AMENDING CHAPTER
5.05, “REGULATION OF COMMERCIAL CANNABIS
ACTIVITIES”.
FILE NO.: C-015-080-060
RECOMMENDATION
Staff recommends that the City Council approve the second reading on Ordinance amending Chapter 5.05, “Regulation of Commercial Cannabis Activities.”
BACKGROUND
At the July 15, 2025, City Council meeting, the City Council voted to temporarily pause the acceptance of retail applications and established a Commercial Cannabis Ad Hoc Committee to discuss existing Commercial Cannabis Regulations, create a retail license application selection process, and review suggested regulatory updates. The Ad Hoc Committee held two public meetings, during which they met with staff, commercial cannabis stakeholders, and subject-matter specialists to evaluate the operational challenges encountered during the licensing process.
Through this review, the Committee identified a series of miscellaneous but meaningful updates spanning definitions, application submittal requirements, evaluation procedures, timelines, and compliance protocols. These recommended changes aim to streamline internal workflows, clarify expectations for applicants, and ensure that the Ordinance continues to align with evolving state law and best practices within the cannabis regulatory field and the Shasta Lake community.
The update includes additional definitions, addresses separation requirements for cannabis retailers, sets forth a timeline for application abandonment, and establishes a 13 retail application selection process. Additionally, the revision aligns the maintenance and retention requirements for records with those of the California Department of Cannabis Control.
The City Council approved the first reading of the Ordinance and the Resolution for the application selection process at the January 6, 2026, City Council meeting.
FISCAL IMPACTS:
None
ATTACHMENTS
Ordinance CC 2026-309
DISTRIBUTION
City Council
City Attorney
Finance Department
14 ORDINANCE CC 2026-309
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
AMENDING CITY MUNICIPAL CODE SECTIONS FOR REGULATION OF
COMMERCIAL CANNABIS ACTIVITIES
The City of Shasta Lake City Council does hereby ordain that City of Shasta Lake Municipal Code Article V Section 5.05 is hereby amended to read as follows:
Section 1. Chapter 5.05 Regulation of Commercial Cannabis Activities
Attached hereto as Exhibit A
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 6th day of January 2026, and a second reading was conducted on the 20th day of January, 2026.
PASSED, APPROVED, AND ADOPTED this 20th day of January, 2026, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
JUSTIN JONES, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
15
Exhibit A
Chapter 5.05 REGULATION OF COMMERCIAL CANNABIS ACTIVITIES
5.05.010 Purpose and intent.
It is the purpose and intent of this section to regulate the cultivation, manufacturing, testing, distribution, and sale of cannabis in order to ensure the health, safety and welfare of the residents of the city. The regulations in this article, in compliance with the Compassionate Use Act, the Medical Marijuana Program Act, Proposition 64 (AUMA), SB 94 (MAUCRSA) and the California Health and Safety Code (collectively referred to as "state law") do not interfere with the right to use cannabis or medical cannabis as authorized under state law, nor do they criminalize the possession or cultivation of cannabis or medical cannabis as authorized under state law. All commercial cannabis business shall at all times be in compliance with current state law at a minimum.
5.05.020 Scope of article.
The operating standards established in this article apply to any site, facility, location, use, or business currently operating in the city, or which commences operations after the effective date of this section, that cultivates, distributes, dispenses, stores, sells, exchanges, processes, delivers, or gives away cannabis for medical or recreational purposes. Any commercial cannabis business shall operate in conformance with the operating standards set forth in this section of the code to assure that the operations of the retail facility, cultivation facility, manufacturing facility, distribution facility or testing facility are in compliance with state law and to mitigate the adverse secondary effects from its operations.
Persons who cultivate cannabis for their sole personal use, or qualified primary caregivers who cultivate medical cannabis on behalf of their qualified patient(s) may do so in quantities recommended by their physician and in accordance with all state and local regulations without submitting any application or permit. It is hereby declared to be unlawful and a public nuisance may also be deemed to exist if such activity is determined to be related to the cultivation of cannabis and produces:
1. Odors which are disturbing to people residing or present on adjacent or nearby property or areas open to the public.
2. Repeated responses to the property from law enforcement or other code enforcement officers (more than three times in a one-year period).
3. Repeated disruption to the free passage of persons or vehicles in the neighborhood (more than three times in a one-year period) as reported to law enforcement officers or the city code enforcement officer.
4. Any other impact which adversely impacts the health, safety or general welfare of people on adjacent or nearby property or areas open to the public.
Nothing in this chapter shall be construed as a limitation on the city's authority to abate any nuisance which may exist from the planting, growing, harvesting, drying, processing or storage of cannabis plants or any part thereof from any location.
All cannabis cultivation shall be subject to Chapter 8.12 (summary abatement-immediately dangerous buildings and conditions), Chapter 8.16 (abatement of dangerous buildings, substandard buildings and public nuisances) and the state housing code (California Health and Safety Code) and other applicable provisions of local and state law.
16
5.05.030 Definitions.
The definitions listed here are applicable throughout this code where cannabis is referenced. All definitions are intended to comply with those in this code, state regulations, Business and Professions Code, and in the California Health and Safety Code, and as they may be amended. "Applicant" shall mean an owner who is required to file an application for a permit or license under this chapter.
"Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.
“Cannabis Application Selection or Review Committee” consists of designated staff members from departments to include: Electric Utility, Finance, and Planning. "Cannabis goods" means both cannabis and/or cannabis products. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "Cannabis manufacturing site" means the premises that produces, prepares, propagates, or compounds manufactured cannabis or cannabis products either directly or indirectly, or by extraction methods, or by a combination of extraction and chemical synthesis at a fixed location that packages, or repackages cannabis goods, or labels or relabels its container.
"Cannabis testing facility" means a public or private laboratory licensed and certified or approved by the Bureau of Cannabis Regulation or any other regulatory body controlling testing facilities, to conduct research and analyze cannabis, cannabis products, and cannabis concentrate for contaminants and potency. "Canopy" means the total combined canopy area for all locations on a property where cannabis is being cultivated, including indoor areas, outdoor areas, or a combination of both, as measured by the horizontal extent of the plant or combination of plants at the widest point and measured in a straight line. "City manager" means the city manager of the City of Shasta Lake or designee. "Commercial cannabis business" means any business which engages in commercial cannabis activity. "Commercial cannabis business" also means the location at which a person engages in commercial cannabis activities.
"Commercial cannabis business permit" means a regulatory permit issued by the City of Shasta Lake pursuant to this chapter to a commercial cannabis business to engage in those commercial cannabis activities authorized by the permit and is required before any cannabis business may conduct any commercial cannabis activity in the city. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, dispensing, or sale of cannabis and/or cannabis products.
"Cultivation" and/or "cultivate" shall mean the planting, growing, harvesting, drying, processing, or storage of one or more cannabis plants or any part thereof.
17
"Customer" means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician's recommendation, or a primary caregiver who is engaged in a transaction with a retailer for purposes of obtaining cannabis goods, i.e., purchase. “Daycare Center” or "Licensed Daycare Center" means any child care-infant center, child care center, or child care center preschool licensed by the State of California Department of Social Services. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products.
"Distribution" means the procurement, sale, and transport of cannabis goods between state-licensed cannabis businesses.
"Distributor" means a commercial cannabis business that is locally authorized to engage in the distribution of cannabis goods.
"Employee" shall mean any person employed by a commercial cannabis business that is locally authorized to engage in commercial cannabis activity.
"Immature cannabis plant" or "immature plant" means a plant that is nonflowering and is shorter and narrower than eighteen (18) inches.
"Indoor cultivation" means cultivation that is conducted within a fully enclosed, permitted building or structure, accessible only through one or more locking doors, which is secure against unauthorized entry, and which uses artificial light.
"Labeling" means any label or other written, printed, or graphic matter upon a cannabis good, upon its container or wrapper, or that accompanies any cannabis good. "Manager" shall mean an employee responsible for management and/or supervision of a commercial cannabis business.
"Manufacture" means to produce, prepare, propagate, or compound, or otherwise blend, extract, or infuse cannabis and/or a cannabis product either directly or indirectly, or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. "Mixed-light cultivation" means cultivation of cannabis using light deprivation, and both natural and/or artificial lighting during the growing cycle, in a permanent facility, which is a building constructed on a permanent foundation in compliance with the California Building Code and complies with all applicable requirements cited within this chapter.
"Non-climbable fence" means a fence with a smooth exterior surface that is not equipped with steps or other provisions for climbing.
"Nursery" means a commercial cannabis business that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. "Outdoor cultivation" means any commercial cannabis cultivation without the use of light deprivation and/or artificial lighting in the canopy area, and that is not conducted within a fully enclosed, permitted building, accessible only through one or more locking doors, which is secure against unauthorized entry. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business, business trust, receiver, syndicate, collective, cooperative, or any other group or entity, or combination acting as a unit, and the plural as well as the singular. "Premise" means the designated structure(s) and land of a legal parcel specified in the application that is owned, leased, used, possessed, or otherwise held under the control of the commercial cannabis business where the commercial cannabis activity will be or is conducted. The premise shall be a contiguous area and shall only be occupied by one permittee.
18
"Primary caregiver" shall have the same meaning as set forth in California Health and Safety Code Section 11362.7.
"Qualified patient" shall have the same meaning as set forth in the California Health and Safety Code Section 11362.7.
"Retail" or "retailer" means a premise that is locally authorized to engage in retail sale and delivery of cannabis or cannabis goods.
"Retail nursery" means a premise that is locally authorized to engage in retail sale and delivery of only cannabis clones, immature plants, and seeds. The sale of all other cannabis goods is prohibited. "School" means any public or private school providing instruction in kindergarten or grades one to twelve (12), inclusive, but does not include any private school in which education is primarily conducted in private homes. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.
5.05.040 Separation requirements.
No commercial cannabis business may be located within a 900-feet linear foot (from property line to property line) from a school, day care home, recreational center, youth center, library or public park.
No commercial cannabis retail business may be located within a 600-feet linear foot (from property line to property line) from another permitted commercial cannabis retail business. (Ord. No. 19-276, § 3(Exh. A), 9-17-2019)
5.05.050 Maximum number of retail businesses permitted citywide.
In no case shall the city allow more than three retail businesses to operate within city limits, regardless of the location's compliance with any other section specified in this title. Retail nurseries are excluded from this restriction.
5.05.060 Commercial cannabis cultivation, testing, manufacturing, distribution and retail facilities.
A. Commercial cannabis cultivation shall be limited to indoor cultivation or mixed-light cultivation only. Outdoor cultivation is prohibited.
B. Cannabis cultivation, distribution, manufacturing or testing facilities shall not contain an exhibition or product sales area or allow for retail sale of products at that location.
C. All commercial cannabis businesses shall be required to provide an air treatment system that ensures off-site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected outside the building, on adjacent properties or public rights-of-way, or within any other unit located within the same building as the facility, if the use occupies only a portion of a building.
19 Created: 2025-08-21 12:21:21 [EST]
(Supp. No. 23, Update 1)
5.05.070 Commercial cannabis business permit required.
A. It shall be unlawful for any person, association, partnership or corporation to engage in, conduct or carry on, in or upon any premises within the city without a commercial cannabis business permit. A cannabis business shall register and obtain a commercial cannabis business permit from the city prior to operation. The applicant shall pay a nonrefundable fee in an amount established by the city council.
B. A copy of the commercial cannabis business permit shall be displayed at all times in a place visible to the public.
C. A commercial cannabis business permit shall be valid for one year, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above-referenced period.
5.05.080 Commercial cannabis business permit.
A. A commercial cannabis business permit shall not be issued to an individual or a business entity associated with an individual, who has violated California Health and Safety Code Section 11590 and its provisions.
B. The commercial cannabis business permit shall be issued to the specific person or persons listed on the cannabis permit application.
C. A commercial cannabis business permit does not transfer with the land and does not transfer with the transfer of the property.
5.05.090 Commercial cannabis business permit application submission process.
A. The city manager will prepare cannabis application forms and a related administrative policy. Each applicant interested in operating pursuant to this section may submit an application together with a nonrefundable processing fee in an amount established by the city council.
B. The city manager shall determine whether each application received demonstrates compliance with the minimum requirements to be eligible to be entered into the selection process. These requirements include:
1. Application was submitted during the application period.
2. Application is filled out completely.
3. Application fee is paid.
4. The location indicated on the application meets the zoning criteria established in Section 17.10.020.
5. The location indicated on the application meets the separation criteria established in Section 5.05.040.
6. A planning and/or building permit with a receipt proving payment for processing from the city planning department for the property location the commercial cannabis business will occupy.
7. A notarized signature from the property owner authorizing the location to be used for commercial cannabis business activity.
8. Authorization from the management association/CC&R's that a cannabis business use is allowed on that parcel (if applicable).
9. Business owner(s)/applicant(s) referenced on the application completes live scan background check.
10. There may be no change in applicant/business owner from the one(s) listed on the commercial cannabis business permit application.
20
11. All other application documents required in the city's application package instructions, state regulations and any other applicable regulations as they may be amended.
12. Photographs of the exterior of the building including the entrance(s), exit(s), street frontage(s) and parking area.
13. If the property is being rented, leased or purchased under contract, the lease agreement term, name of lessor or equivalent, shall be provided by a notarized signed affidavit of the property owner.
14. The name and address of the applicant's current agent for service of process.
15. A copy of the applicant's board of equalization seller's permit.
16. A copy of the commercial cannabis business operating standards, listed in Sections 5.05.140, 5.05.150, and 5.05.160 if applicable containing a statement dated and signed by the business owner stating that under penalty of perjury that they read, understand and shall ensure compliance with the aforementioned operating standards.
17. Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
18. Release of the city from all liability associated with the commercial cannabis business. Such a release includes indemnifying the city for claims, damages and injuries that may arise as a result of the commercial cannabis business.
19. Provide a completed utility load information form.
5.05.100 Environmental clearance required for commercial cannabis business permit applications.
A. The purpose of this section is to provide the City of Shasta Lake, permit applicants, and the public with the procedures to be used in administering the city's responsibilities under the California Environmental Quality Act (CEQA), codified as Public Resources Code Section 21000, et seq., as amended. The procedures are intended to protect both local and regional natural resources in a manner that is consistent with the goals and policies of the general plan, and the requirements of CEQA.
B. Each applicant interested in operating pursuant to this chapter shall submit an application for environmental clearance with the city manager together with a nonrefundable processing fee in an amount established by the city council at the time of application for a commercial cannabis business permit. The city manager will prepare documents as required for environmental clearances for all cannabis business permits.
C. The full text of the state CEQA guidelines as amended is hereby incorporated by reference into this chapter as if fully set out herein and shall supersede any inconsistent provisions of these city environmental review procedures. These environmental review procedures supplement the state CEQA guidelines adopted as 14 California Code of Regulations, Title 14, Section 15000, et seq. In the event there is a conflict between the Public Resources Code and the CEQA guidelines, the Public Resources Code shall govern.
D. The list of defined terms in Chapter 17.02 (definitions), under title 17 of the City of Shasta Lake Municipal Code is expanded by reference to include the definitions contained in the Public Resources Code and the state CEQA guidelines.
E. The city manager shall determine whether an application for environmental clearance is complete within thirty (30) calendar days from the receipt of the application. If no written determination of the completeness of the application is made within that period, the application shall be deemed complete on the thirty-first (31st ) day.
1. When reviewing the application for completeness, the city manager shall identify environmental issues that require additional information or explanation by the applicant. An application for a commercial 21
cannabis business permit shall not be accepted as complete until all the information necessary for environmental review as determined by the city manager has been submitted.
2. Accepting an application as complete does not limit the authority of the city to require the applicant to submit additional information needed for environmental evaluation.
3. Notice of Exemption. When the city manager determines that a project is categorically or statutorily exempt from CEQA and the city decides to approve the commercial cannabis permit, the city may file a notice of exemption. The notice of exemption may be prepared in accordance with Section 15062 of the CEQA guidelines.
4. Filing of Notice of Exemption. The city may file the notice of exemption with the County Clerk of Shasta County. Copies of the notice may also be available for public inspection at the city. Filing and posting the notice of exemption commences a thirty-five-day statute of limitations from the date of project approval.
F. A commercial cannabis business permit shall not be issued until such time that environmental clearance where required by this chapter and the provisions of CEQA has been completed.
1. Exception: Where the issuance of a commercial cannabis business permit also involves the issuance of a discretionary land use entitlement as set forth in Chapter 17.10, the environmental clearance may be completed in combination with the land use entitlement.
5.05.110 Non-Retail commercial cannabis business permit application selection process.
A. The city manager will evaluate the applications received and make a determination on the eligibility of each application. Each application that is complete and in compliance with this chapter shall be placed on the "qualified commercial cannabis business application list" and shall be notified in writing that they are a "qualified commercial cannabis business applicant."
B. The city manager, after receiving the application and aforementioned information, will grant the permit Approval Letter if they find:
1. The required fee has been paid.
2. The application conforms in all respects to the provisions of this chapter.
3. The applicant has not knowingly made a material misrepresentation in the application.
4. The applicant has fully cooperated in the investigation and background checks required by this section.
5. The applicant has not had a commercial cannabis business license or other similar license or permit denied or revoked for cause by this city or any other city in the state within the last five years prior to the date of the application.
6. The commercial cannabis business, as proposed by the applicant would comply with all applicable laws including, but not limited to, health, zoning, fire and safety requirements.
7. The applicant has demonstrated compliance with this code and state regulations.
C. After all tenant improvements have been finalized by the commercial cannabis business owner, the city manager can request an inspection of the cannabis business location to confirm compliance with this section.
D. If any of the items listed in the application process are not met, the city manager shall notify the applicant of the deficiency, after which the applicant will have ten days from receipt of notice to correct the deficiency. If the deficiency is not corrected within ten days, the city manager may deny the permit and notify the applicant of this determination in writing after which the applicant can appeal the decision in accordance with Section 5.05.130 (appeal of denial of permit reference).
E. Any application that has failed to comply with local or state application compliance may be deemed abandoned after 90 days.
22
F. The Business License and Permit to Operate will be issued once the State has approved the license and all fees have been paid.
5.05.120 Retail commercial cannabis business permit application selection process.
A. The Qualified Lottery process is intended to ensure fairness and transparency in the issuance of retail commercial cannabis business permits by requiring applicants to first demonstrate basic qualifications through a merit-based review, followed by a randomized lottery among those applicants who meet the established standards.
B. By resolution, the City Council shall adopt Procedural Guidelines and Review Criteria for the City’s evaluation of applications for retail commercial cannabis business permits. The Procedural Guidelines and Review Criteria shall be published on the City's website and available upon request at City Hall.
B. The Procedure Guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.
C. The Review Criteria shall include the methodology to be used to evaluate applications on a point system, or other system, based on the Review Criteria.
D. The City Managershall be authorized to prepare forms and adopt rules to implement the Procedure Guidelines and Review Criteria.
E. Merit-based review.
1. All applications shall first be reviewed to determine compliance with minimum qualifications and standards adopted by City Council resolution.
2. Only those applications that meet or exceed the minimum threshold established by resolution shall be eligible to participate in the lottery.
3. Applications failing to meet the minimum threshold shall be deemed ineligible and disqualified from the application process.
F. Qualified lottery.
1. The City shall conduct a lottery among all eligible applicants who satisfy the minimum qualifications.
2. The procedures for conducting the lottery, including methods to ensure impartiality and transparency, shall be adopted by City Council resolution.
3. The lottery shall be conducted in a public forum, and the results shall be recorded and made available to the public.
G. Permit Award.
1. Applicants selected through the lottery shall be offered conditional retail commercial cannabis business permits, subject to compliance with all other applicable requirements of this Code.
2. In the event a selected applicant is disqualified or withdraws, the City may offer the permit to another applicant in accordance with procedures adopted by resolution.
5.05.130 Cannabis permit annual renewal.
A. Applications for the renewal of a permit shall be submitted at least thirty (30) calendar days before the expiration of the current permit. Any permittee allowing their permit to lapse or which permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees and be subject to all aspects of the selection process. 23
B. Any person desiring to obtain a renewal of their respective permit shall file a written application under penalty of perjury on the required form. The application shall be accompanied by a nonrefundable filing fee established by the city council to defray the cost of the review required by this section. An applicant shall be required to update the information contained in their original permit application and provide any new and/or additional information as may be reasonably required by the city manager in order to determine whether said permit should be renewed.
5.05.140 Denial of permit.
A. The city manager, in consultation with law enforcement, building official and city fire protection district, will review all commercial cannabis business applications, and all other relevant information, and determine if a permit should be granted. If the city manager determines that the permit shall not be granted, the reasons for denial shall be provided in writing to the applicant. The applicant shall have fourteen (14) calendar days from the date of the receipt of the written denial to correct the reasons for denial and request in writing reconsideration of permit issuance. Following review of the amended permit application, the city manager will approve or deny the permit by providing written notice to the applicant.
B. An applicant who disagrees with the decision may appeal such decision pursuant to the appeals process of this section.
5.05.150 Operational standards for all commercial cannabis business activities.
A. Interior and exterior locations of the business property shall be monitored at all times by digital video surveillance system with a minimum camera resolution of one thousand two hundred eighty (1280) by seven hundred twenty (720) pixels and at a minimum of fifteen (15) frames per second for security purposes. The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance. Each camera shall be permanently mounted and in a fixed location. The video surveillance system shall record areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the permitted premise including: all limited-access areas, security rooms, point-of-sale areas, and all points of entry and exit on the premise. The video surveillance system shall clearly record activity occurring within twenty (20) feet of all points of entry and exit on the premise.
B. Surveillance recordings shall clearly and accurately display the time and date and shall be maintained, unaltered, in secured location, stored digitally, for a period of not less than ninety (90) days. The city or law enforcement may request the recordings in connection with an investigation. If the recordings are not voluntarily provided, the city or law enforcement may seek a warrant or court order for the recordings.
C. A commercial cannabis business entity that remains inoperative for more than ninety (90) days shall be deemed "abandoned" and the permit shall be forfeited. A business may temporarily suspend operations for a period of time as may be reasonably required to affect upgrades, modifications, repairs, or other property issue mitigations as approved by the development services director or his or her designee.
D. Create and maintain an active account within the state's track and trace system prior to commencing any commercial cannabis activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within twenty-four (24) hours of the system being available.
E. Register with the department of pesticide regulation if using any pesticides.
F. Comply with all state regulations regarding testing, labeling and storage of all cannabis products.
G. Meet all state and local regulations for the disposal of all cannabis materials and materials used in conjunction with manufacturing, testing, processing, distributing and cultivating of cannabis.
H. Conform to all state regulations requiring the use of appropriate weighing devices.
I. Conform to all state and local regulations regarding water usage. 24
J. All electrical and plumbing must comply with state and local regulations including the California Building Code and California Fire Code, as adopted by the City of Shasta Lake.
K. Comply with all state insurance and security bond regulations.
L. The commercial cannabis business shall have a centrally monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows.
M. All persons with ownership interest, and all employees, agents, officers and other persons acting on behalf of a licensee must be at least twenty-one (21) years of age.
N. Comply with all state, county, and local tax regulations.
5.05.160 Additional operational standards for retail business.
A. A permitted cannabis retail business shall comply with all state regulations. During the hours of operation, the cannabis retail business shall hire or contract for security personnel who are at least twenty-one (21) years of age and licensed by the Bureau of Security and Investigative Services and shall comply with Chapters
11.4 and 11.5 of Division 3 of the Business and Professions Code.
B. The security personnel and cannabis retail business personnel shall monitor the site and the immediate vicinity of the site to assure that patrons immediately leave the site and do not consume cannabis in the vicinity of the retail business or on the property or in the parking lot.
C. Signage.
1. All exterior signage shall conform with existing zoning requirements. The existing retail business signage is 'grandfathered' in as of April 1, 2017. Any additional signage modifications shall comply with retail business.
2. The following information shall be provided on a sign posted in a conspicuous location inside the cannabis dispensary:
a. Smoking, ingesting or consuming cannabis on this property or within one hundred (100) feet of the business is prohibited.
b. No one under the age of twenty-one (21) shall be allowed to enter this facility unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or legal guardian.
c. The City of Shasta Lake has not tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.
D. No recommendations from a doctor for medical cannabis shall be issued on-site.
E. Each retail business owner shall establish minimum training standards for all employees.
F. There shall be no on-site sales of alcohol or tobacco products, and no on-site consumption of food, alcohol, tobacco or cannabis by patrons without prior written approval from the city.
G. Drive-through sales must be approved in writing by the city prior to implementing.
H. The retail business shall comply with state department of health requirements pertaining to use of commercial kitchen facilities for the cannabis operations.
I. All employees of the retail business shall wear a laminated or plastic-coated photo identification badges clearly identifying them as employees when on duty. Badges shall include a color frontal face picture, 25
employee name, employee number, business name and number, and be at least one and one-half inches in width by one and one-half inches in height.
J. No cannabis retail facility shall cause or permit the access, sale, or exchange of cannabis goods to any person who is not at least twenty-one (21) years of age or at least eighteen (18) years of age with a valid physician's recommendation for medical cannabis.
5.05.170 Deliveries.
A. All deliveries shall comply with all state regulations contained in California Code of Regulations Title 16, Division 42 and as it may be amended from time to time.
B. Deliveries may be made from a licensed retail business.
C. All employees who deliver cannabis must have a valid identification card at all times while the delivery is being made.
D. Deliveries may only take place during normal business hours of the retail business.
E. A customer requesting delivery shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers.
F. A retail business shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered and any other information required by the state.
G. A cannabis business shall only deliver cannabis in aggregate amounts tied to its members' needs. A cannabis business shall ensure compliance with state law limits as they regard cannabis and cannabis products.
H. A manifest with all information required in this section must accompany any delivery person or delivery method at all times during the delivery process and delivery hours.
5.05.180 Additional operational standards for retail nurseries.
A. A retail nursery shall be restricted to the sale of only cannabis clones, immature plants, and seeds. The sale of all other cannabis goods is prohibited.
B. A retail nursery shall be required to comply with the additional operating standards established for retail businesses in Section 5.05.140.
C. A retail nursery shall be required to obtain a state-issued license.
5.05.190 Maintenance of records.
A. A commercial cannabis business shall maintain all the records required for retention by California Code of Regulations Title 3, Division 8; Title 16, Division 42 Title 4, Division 19 – New location; and Title 17, Division 1.
B. These records shall be maintained for a period of seven years and shall be kept in a manner that allows the records to be produced for the City of Shasta Lake and/or law enforcement at the cannabis business premises in either hard copy or electronic form, whichever the City of Shasta Lake requires.
C. A commercial cannabis business shall maintain all the records required for retention by California Business and Professions Code Section 26160.
D. A commercial cannabis business shall maintain all the records required for retention by Revenue and Taxation Code Section 34019.
26
5.05.200 Inspection and enforcement responsibilities.
City code enforcement officials may enter and inspect the location of any commercial cannabis business between the normal business hours to ensure compliance with this section. In addition, law enforcement may enter and inspect the location of any cannabis business and the recordings and records maintained as required by this section, except that the inspection and copying of private medical records shall be made available to law enforcement only pursuant to a properly executed search warrant, subpoena, or court order. A person engaging in commercial cannabis business without a permit and associated unique identifiers required by this chapter shall be subject to civil penalties of up to twice the amount of the permit fee for each violation, and the department, state or local authority, or court may order the destruction of cannabis associated with that violation. A violator shall be responsible for the cost of the destruction of cannabis associated with his or her violation, in addition to any amount covered by a bond required as a condition of licensure. Each day of operation shall constitute a separate violation of this section.
5.05.210 Fees.
All cannabis operations shall pay applicable fees and taxes, which may include one or more of the following.
A. Application Fee. The business applicant shall submit a nonrefundable fee to cover the cost of processing an application and renewal application for the commercial cannabis business.
B. Business License Fee. The business owner shall at all times maintain a current and valid business certificate and pay all business taxes required by this code.
C. Regulatory License Fee. The business owner shall pay an annual regulatory license fee ("regulatory fee") to cover the costs of anticipated enforcement relating to the cannabis operation. The amount of the fee shall be set by resolution of the city council and be supported by the estimated additional costs of enforcement and monitoring associated with the cannabis operation. The regulatory fee shall be due and payable prior to opening for business and thereafter on or before the anniversary date. The regulatory fee may be amended from time to time based upon actual costs.
D. Taxes. The business applicant shall stay current with all state, federal, and local taxes, including commercial cannabis business tax set forth by Chapter 3.17.
5.05.220 Violation and enforcement.
Each and every violation of this section shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by this code. Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, revocation of the business's commercial cannabis business permit, disgorgement and payment to the city of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or equity. The city may also pursue any and all remedies and actions available and applicable under local and state laws for any violations committed by the cannabis business and persons related or associated with the cannabis business.
5.05.230 Permit suspension, modification or revocation.
Commercial cannabis business permits may be revoked, suspended, modified for any violation of any law, rule, regulation, or permit conditions or standard adopted pursuant to this Title 5.05. If the city manager determines that there is cause to consider revocation, suspension or modification of any commercial cannabis business permit, the city manager will:
1. Notify the permittee of the possible action and the reasons for it; 27
2. Provide permittee with evidence the city manager possesses that may justify the revocation, suspension or modification;
3. Advise the permittee that permittee may request a hearing before the city manager to present evidence, argument or other matters permittee feels the city manager should consider before taking any action.
5.05.240 Hearing.
If a permittee wishes to have a hearing before the city manager, the permittee must, within five days of the city manager's notice, send to the city manager a written request for a hearing. The city manager will provide notice to permittee of the time and place of hearing. The city manager will consider evidence, argument, and evidence offered by permittee and render a written decision.
5.05.250 Appeal process.
A. Within ten calendar days after the date of a decision of the city manager to revoke, suspend or deny a permit, or to add conditions to a permit, an aggrieved party may appeal such action by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper.
B. At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the city council from time to time.
C. Upon receipt of the written appeal, the city clerk shall set the matter for a hearing before the city council.
The city council shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the city.
D. The appeal shall be held within a reasonable time after the filing the appeal.
E. At the hearing the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.
F. At the conclusion of the hearing the city council may affirm, reverse or modify the decision appealed. The decision of the city council shall be final.
28 Report and Recommendations 6.5 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
____________________________________________________________ TO: Mayor and City Council Members
FROM: Peter Bird, Senior Planner
DATE: January 6, 2026
SUBJECT: SECOND READING OF ORDINANCE AMENDMENTS TO THE
CITY OF SHASTA LAKE MUNICIPAL CODE TITLE 17 - ZONING
FILE NO.:
RECOMMENDATION
Staff recommends that the City Council approve the second reading of the Ordinance amendments to Title 17-Zoning of the City of Shasta Lake Municipal Code (SLMC).
BACKGROUND
The following municipal code amendment represents an effort to clarify and align Chapter
17.10 – Cannabis Business Land Use with the findings of the Commercial Cannabis Ad Hoc Committee.
PROPOSED CHANGES
The existing ordinance will be replaced with the attached draft, which is reformatted and reflects the zoning districts that will be adopted with the development code update. The current ordinance is included in Attachment B for reference.
Substantive changes include:
1. Existing Footnote 1 - Three total retail businesses are permitted; each must be located on Shasta Dam Boulevard or in a previously established location housing an existing retailer in operation at the time the ordinance from which this section is derived was adopted.
29 Proposed Footnote 1 - A total of three cannabis retailers are permitted within the City of Shasta Lake.
FISCAL IMPACT
None
ATTACHMENTS
Ordinance CC 2026-310
Attachment B – Existing Ordinance
DISTRIBUTION
City Council
City Manager
30 ORDINANCE CC 2026-310
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPROVING A MUNICIPAL CODE AMENDMENT TO CHAPTER 17.10 – CANNABIS
BUSINESS LAND USE
WHEREAS, the General Plan of the City of Shasta Lake has been adopted to guide development in compliance with State Law; and
WHEREAS the Government Code allows the City to adopt ordinances and standards to reasonably regulate the development of property and to protect public safety and the environment consistent with the direction provided by the General Plan; and, WHEREAS, the City of Shasta Lake proposes to amend the Municipal Code Chapter
17.10 – Cannabis Business Land Use to align with the Commercial Cannabis Ad Hoc Committee findings; and,
WHEREAS, the City of Shasta Lake is in the process of completing the comprehensive development code update; and,
WHEREAS, the existing Shasta Lake Municipal Code Chapter 17.10 will stay in effect until May 30, 2026, and will thereafter be replaced by this ordinance.
WHEREAS, the Planning Commission conducted a public hearing on December 4, 2025, and considered all public testimony provided regarding the proposed ordinance, as well as all written materials and other information in the record, finding the changes exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption), and made a recommendation to the City Council for approval of the amendments;
NOW, THEREFORE, THE CITY COUNCIL OF SHASTA LAKE DOES ORDAIN AS FOLLOWS:
SECTION 1: Findings, Determinations, and Direction:
1. The proposed amendments would further the public necessity, convenience, and general welfare. The amendment would provide citizens with opportunities to participate in the planning and decision-making processes of the City relative to the development of property. The proposed ordinance would also preserve and enhance the quality of life of residents by supporting orderly and safe development of a variety of living environments and accommodating growth.
2. The proposed revisions comply with the applicable Government Code requirements of the State of California as implemented by the General Plan and Municipal Code of the City.
31 3. The proposed amendments are consistent with the City’s General Plan by supporting the adopted goals, objectives, policies, and implementation measures, including but not limited to the following:
a. POLICY-LU-1.3 - Evaluate zoning proposals to prevent the overconcentration of land uses in any area of the City where land use intensities, commercial or industrial operations, or increased traffic would adversely impact the safety, health, and quality of life of residents. b. POLICY-LU-1.8 As the community grows and faces development pressure along Interstate 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.
c. IMPLEMENTATION-LU-1.3 Regularly monitor all parts of the Municipal Code to identify requirements or standards that limit flexibility and creativity in the reuse of developed properties and existing structures. The City should make appropriate changes consistent with the goals and policies of the General Plan when needed.
4. The proposed project will not result in a significant adverse impact on the environment as it will implement the Land Use Element of the General Plan, consistent with the Final Environmental Impact Report prepared for adoption of the General Plan. The proposed amendments address minor modifications to existing permitted uses, and will not create new impacts of the environment. Therefore, the proposed amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the State Guidelines to implement CEQA.
SECTION 2: Severability: If any provision of this ordinance or the applications thereof to any person, property, 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: Municipal Code Amendment:
Ordinance Amendments – Replace Chapter 17.10 in its entirety.
I. Proposed Ordinance (including new anticipated chapter reference):
Title 17 – Zoning
Division IV – Regulations Applying in All Districts
Chapter 17.49 – Cannabis Business Land Use
32 17.49.010 Purpose.
The purpose of this chapter is to establish clear standards for the location and operation of commercial cannabis uses within the City of Shasta Lake. Commercial cannabis activities are permitted only in the zoning districts expressly identified in Section
17.49.040; any district not listed in that section does not allow such uses.
This chapter is further intended to ensure that all cannabis businesses operate in a manner that safeguards public health, safety, and the general welfare of residents and businesses, and that such activities remain compatible with surrounding land uses and community expectations.
17.49.020 Applicability.
This chapter applies to the permitting of cannabis land uses in the city. Routine ongoing operation and maintenance shall not require a permit.
17.49.030 Definitions.
The definitions for commercial cannabis activities listed within Section 05.05.030 - Definitions are hereby incorporated into this chapter by reference.
17.49.040 Land Use table(s).
The following land use tables – Tables 17.49. 040 - A and B - shall be used to determine whether a cannabis business is permitted (P) by zoning clearance, not permitted (NP), or permitted subject to an administrative permit (AP) or use permit (UP).
If a zoning district in title 17 is not listed in the land use table in this section, the use is expressly not permitted.
Table 17.49 - A. Cannabis Land Use Type and Permitting.
Use Type Land Use Class Permit Required
VM
U
GC/VC HC IL L SGIPPD/D
R
Cultivation Commercial—A, B,
C
NP NP UP P P P
Retailer Storefront/Delivery P 1 P 1 NP N
P
N
P
NP
33 Footnotes:
1 A total of three total retail cannabis businesses are permitted within the City of Shasta Lake. 2 Permitted use within buildings less than two thousand (2,000) square feet. 3 Retail sales required.
4 Retail sales allowed.
5 Permitted use for buildings less than two thousand (2,000) square feet—Subject to CUP for buildings over two thousand (2,000) square feet.
6 Retail sales not allowed.
Land use classifications:
Commercial A—Permitted cultivation area: Zero to five thousand (5,000) square feet.
Commercial B—Permitted cultivation area: Five thousand one (5,001) to ten thousand (10,000) square feet.
Commercial C—Permitted cultivation area: Ten thousand (10,000) to twenty-two thousand (22,000) square feet.
Use Type Land Use Class Permit Required
VM
U
GC/VC HC IL L SGIPPD/D
R
Distribution Warehouse/Distribut
or
NP P 2 P 2 /UP P P P
Manufactur
er
Manufacturing NP NP UP U
P
P P
Nursery Retail/Wholesale NP P 3 /UP 3,
5 P 4 /UP 4,
5 P
6 P
6 P 6
Testing Laboratory NP UP UP P P P
34 Table 17.49 - B. Applicable Land Use Table.
17.49.050 Permits.
All commercial cannabis business allowed as shown in section 17.49.040 are required to obtain a business license and commercial cannabis business permit as required by Title 5 - Business Licenses and Regulations, prior to the commencement of activity of any kind.
A. The director may require an applicant to apply for a use permit if, based on substantial evidence, the cannabis use could have a specific, adverse impact upon the public health and safety. The director’s decision to require a use permit may be appealed by the applicant to the planning commission pursuant to Chapter 17.11 – Common Procedures of this title.
B. If a use permit is required, the application for the permit may be denied if the planning commission makes written findings, based upon substantial evidence in the record, that the proposed use would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. Such findings shall include the basis for the rejection of potential feasible alternatives for preventing the specified, adverse impact.
17.49.120.060 Development Standards.
Commercial cannabis businesses shall comply with all applicable development standards outlined within this title and code.
SECTION 4: Effective Date: This ordinance shall take effect 30 days after the date of its second reading and posting pursuant to City Code.
ZONING DISTRICTS
VMU Village Mixed Use
GC, VC General Commercial
HC Heavy Commercial
LI Light Industrial
I Industrial
SGIP-PD Shasta Gateway Industrial
Park—Planned
Development
35 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 6th day of January 2026, and a second reading was conducted on the 20th day of January, 2026.
PASSED, APPROVED, AND ADOPTED this 20th day of January, 2026, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
JUSTIN JONES, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
36 Attachment B – Current Ordinance
Chapter 17.10 CANNABIS BUSINESS LAND USE
17.10.010 Purpose.
The purpose of this chapter is to define where cannabis business as a land use can be located within the identified zoning districts as called out in the land use table in section 17.10.020. For zoning districts not called out in the table it shall be presumed that the business is expressly not permitted or allowed within that zoning district. (Ord. No. 17-258, § 1, 5-2-2017; Ord. No. 20-283, § II(Att. A), 9-1-2020)
17.10.015 Intent.
The intent of this section shall be to insure that cannabis businesses are operated in such a manner as to insure the public health and safety of the residents and businesses of the City of Shasta Lake.
(Ord. No. 17-258, § 1, 5-2-2017; Ord. No. 20-283, § II(Att. A), 9-1-2020)
17.10.020 Land use table.
The land use table shall be used to determine whether a cannabis business is permitted (P), not permitted (NP), or permitted with a conditional use permit (CUP). If a zoning district in title 17 is not listed in the land use table in this section, the use is expressly not permitted.
Use Type Land Use Class Permit Required
R VC C-2 CM ML M SGIPPD/DR
Cultivation Commercial—A, B, C NP NP NP CUP P P P
Retailer Storefront/Delivery NP P1 P1 NP NP NP NP
Distribution Warehouse/Distributor NP NP P2 P2
/CUP
P P P
Manufacturer Manufacturing NP NP NP CUP CUP P P
Nursery Retail/Wholesale NP NP P3
/CUP3,5
P4
/CUP4,5
P6 P6 P6
Testing Laboratory NP NP CUP CUP P P P
Footnotes:
1 Three total retail businesses are permitted; each must be located on Shasta Dam Boulevard or in a previously established location housing an existing retailer in operation at the time the ordinance from which this section is derived was adopted. 2 Permitted use within buildings less than two thousand (2,000) square feet. 3 Retail sales required.
4 Retail sales allowed.
5 Permitted use for buildings less than two thousand (2,000) square feet—Subject to CUP for buildings over two thousand (2,000) square feet. 37 6 Retail sales not allowed.
Land use classifications:
Commercial A—Permitted cultivation area: Zero to five thousand (5,000) square feet.
Commercial B—Permitted cultivation area: Five thousand one (5,001) to ten thousand (10,000) square feet.
Commercial C—Permitted cultivation area: Ten thousand (10,000) to twenty-two thousand (22,000) square feet.
ZONING DISTRICTS
R Residential Zoning Districts
VC Village Commercial
C-2 Community Commercial
CM Commercial—Light Industrial
DR Design Review
ML Light Industrial
M Industrial
SGIP-PD Shasta Gateway Industrial Park—Planned Development (Ord. No. 17-258, § 1, 5-2-2017; Ord. No. 18-268, 4-3-2018; Ord. No. 20-283, § II(Att.
A), 9-1-2020; Ord. No. 21-288, (Exh. A), 4-6-2021)
17.10.030 Definitions.
The definitions listed within section 05.05.030, regulation of commercial cannabis activities—definitions, are hereby incorporated into this chapter. (Ord. No. 17-258, § 1, 5-2-2017; Ord. No. 18-268, 4-3-2018; Ord. No. 20-283, § II(Att.
A), 9-1-2020)
17.10.040 Development standards.
Commercial cannabis businesses shall comply with all applicable development standards outlined within this Code.
(Ord. No. 17-258, § 1, 5-2-2017; Ord. No. 20-283, § II(Att. A), 9-1-2020)
17.10.050 Permits.
All commercial cannabis business allowed as shown in section 17.10.020 are required to obtain a business license and commercial cannabis business permit as required by title 5, business licenses and regulations. (Ord. No. 17-258, § 1, 5-2-2017; Ord. No. 20-283, § II(Att. A), 9-1-2020) 38 Report and Recommendations 8.1 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Charity Tatlow, City Clerk
DATE: January 20, 2026
SUBJECT: APPOINTMENTS TO THE CITY OF SHASTA LAKE PLANNING
COMMISSION
FILE NO.: C-080-634-080
RECOMMENDATION
Staff recommends that the City Council interview and consider applicants for appointments to the Planning Commission to fill three vacant seats, with terms expiring in February 2030.
BACKGROUND
The Planning Commission is a five-member Commission. There are currently three seats on the Commission available due to term expirations. A vacancy notice was posted locally, as per the adopted policy, and published in the Intermountain News to advertise the vacancy. The seats that are up for appointment were previously held by Jeff Bowman, Darlene Brown, and Randy Trotter.
The City has received one (4) Letters of Interest/Resume from the following individuals:
• Jeff Bowman (reappointment) (pg. 43-44)
• Randy Trotter (reappointment) (pg.45)
• Amber Campos (pg. 46)
• Tena Eisenbeisz (pg. 47)
Staff requested that the City Council select three applicants to fill the vacancies, with terms expiring in February 2030.
39 FISCAL IMPACTS
No fiscal impact
ATTACHMENTS
Applicant Letters/Resumes
Resolution CC 2026-XX
40 RESOLUTION CC 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPOINTING ________________, ________________, AND ________________
TO THE SHASTA LAKE PLANNING COMMISSION FOR A TERM
EXPIRING IN FEBRUARY 2030
WHEREAS, the City Council of the City of Shasta Lake authorized the creation of a City Planning Commission, consisting of five members appointed by the City Council, pursuant to Municipal Code Chapter 2.16; and
WHEREAS, there are three (3) vacancies on the Commission; and WHEREAS, the vacancies have been posted per the current policy; and WHEREAS, the City Council has received letters and/or resumes from four applicants seeking appointment.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shasta Lake that ____________, ____________, and ____________ are hereby appointed to the Shasta Lake Planning Commission for a term that expires in February 2030.
PASSED, APPROVED, AND ADOPTED this 20th day of January, 2026, by the following vote:
AYES:
NOES:
ABSENT:
______________________________
JUSTIN JONES, Mayor
ATTEST:
_______________________________
CHARITY TATLOW, CMC
City Clerk
41 42
To Charity Tatlow City Clerk, City of Shasta Lake CA.
Hello. I would be honored to once again serve on the City of Shasta Lake Planning Commission. I was honored to finish out the term of a Commissioner who could not serve his final year. I served during the 2025 calendar year. I have always enjoyed being involved in the community in which I live. In my previous city government career I have reviewed and commented on many Planning issues relating to our department. I have included a short summary of my work history. I would like to once again be considered for the current vacancy and to serve the City of Shasta Lake on the Planning commission.
Thank you for your consideration. Jeff Bowman
43 2
Jeffrey L. Bowman
Professional
History
Education
Community
involvement
Retired with 30 years and 3 months of dedicated service to the citizens of the City of Farmington, NM (2013)
Operations Manager for the Soundhouse Recording Studios- January 2013-present Part-time
Director of Parks, Recreation and Cultural Affairs 1999- January 1, 2013 City of Farmington, New Mexico
Assistant Director of Parks and Golf Operations. 1989-1999 City of Farmington, New Mexico.
Parks Superintendent. 1982-1989 City of Farmington, New Mexico Parks Superintendent 1976- 1982 City of York, Pa.
BS degree in Agronomy, Delaware Valley University of Science and Agriculture, Doylestown Pennsylvania.
City of Shasta Lake, Planning Commission Present
City of Shasta Lake. Parks and Recreation Commission 2024 Member of the Valley Christian Family Church
3140 Westminster Court, Shasta Lake CA
505-860-4078
[email protected]
44 My name is Randy Trotter. I am interested in the opening on the Planning Commission February 2026. I have
served as a Commissioner for the last five years. During that time I have been part of many important that affected the continued growth and prosperity of the City of Shasta Lake. For the past few years we have been involved in
developing the Comprehensive Zoning Ordinance update
for the city, I was involved in decisions that brought new businesses to the city. Businesses like the Fall River
Brewing pub and the 7 eleven. I was involved in the
decisions that brought the low income housing
development along Shasta Dam Blvd. I was honored to
serve as Chairman of the Planning Commission for 2024.
I feel I have been an important part of the Planning
Commission and look forward to continuing my work in
the coming years.
Sincerely,
Randy Trotter
45 From: amber campos
To: City Clerk
Subject: Letter of Interest: City of Shasta Lake Planning Commission Date: Monday, January 5, 2026 5:34:59 PM
Dear City Clerk,
I am writing to express my interest in serving on the Planning Commission for the City of Shasta Lake. As a long-term resident who has lived in Shasta Lake for the past 25 years, I have a deep appreciation for our community and a strong commitment to its thoughtful growth and future success.
From 2022 to 2024, I worked for the Gateway Unified School District, where I gained valuable experience collaborating with families, staff, and community partners. Working in education strengthened my ability to listen carefully, consider multiple perspectives, and make decisions that balance immediate needs with long-term impacts—skills that I believe are essential when reviewing development projects and planning policies.
Living in Shasta Lake for most of my life has given me a strong understanding of the city’s character, challenges, and opportunities. I am passionate about preserving what makes our community unique while also supporting responsible growth that benefits residents, local businesses, and future generations. I would be honored to contribute my perspective, work ethic, and community-centered approach as a member of the Planning Commission.
Thank you for considering my letter of interest. I am able to attend the regularly scheduled meetings and would welcome the opportunity to further discuss how I can serve the City of Shasta Lake.
Sincerely,
Amber Campos
Shasta Lake, CA
46 47
48 Report and Recommendations 8.2 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
____________________________________________________________ TO: Mayor and City Council Members
FROM: Jessca Lugo, City Manager
DATE: January 20, 2026
SUBJECT: RESOLUTION AMENDING PURCHASING THRESHOLD LIMITS PURSUANT TO MUNICIPAL CODE CHAPTER 2.32
(PURCHASING SYSTEM)
FILE NO.:
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution amending the existing purchasing threshold limits established by SLMC Chapter 2.32.
BACKGROUND
Municipal Code Chapter 2.32 establishes the City of Shasta Lake’s purchasing system, including procedures, authority, and competitive bidding requirements for the procurement of supplies, services, and equipment. The chapter designates the City Manager as the Purchasing Agent and provides a structured framework intended to ensure efficient purchasing practices, fiscal accountability, and transparency, while allowing flexibility appropriate to the size and complexity of individual purchases.
Section 2.32.040 of the Municipal Code authorizes the City Council to establish purchasing threshold limits by resolution. These thresholds determine the level of bidding and approval required for purchases and are intended to balance administrative efficiency with appropriate financial oversight.
The current purchasing thresholds were last established by City Council action in December 2022. Since that time, inflationary pressures and increased market costs for materials, equipment, and contracted services have significantly reduced the purchasing power of the existing thresholds. As a result, routine and operational purchases increasingly require higher levels of bidding and approval than originally intended when the thresholds were adopted.
49 Amending the purchasing thresholds will better align the City’s procurement practices with current economic conditions, improve operational efficiency, and reduce administrative delays, while maintaining existing purchasing controls, competitive bidding requirements, and Council oversight for higher-cost expenditures. The proposed amendments do not alter the purchasing system, authority, or exceptions outlined in Chapter 2.32, but solely update the dollar thresholds to reflect current costs.
FISCAL IMPACT
There is no direct fiscal impact associated with the adoption of this Resolution. The amendment modifies purchasing procedures only and does not authorize new spending.
ATTACHMENTS
Resolution
DISTRIBUTION
City Council
City Attorney
Finance Department
50 RESOLUTION CC 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
AMENDING PURCHASING THRESHOLD LIMITS PURSUANT TO MUNICIPAL CODE CHAPTER 2.32 PURCHASING SYSTEM
WHEREAS, Municipal Code Section 2.32.040 provides that the City Council, by resolution, shall establish monetary limits for thresholds to implement purchasing procedures.
NOW, THEREFORE, BE IT RESOLVED, The City Council of Shasta Lake hereby approves the purchasing guidelines hereby established:
1) Threshold 1 – Small Purchases: $25,000 or less;
2) Threshold 2 – Open Market Purchases: over $25,000 and equal to or less than $100,000; 3) Threshold 3 – Competitive Purchases: over $100,000.
PASSED, APPROVED, AND ADOPTED this 20th day of January, 2026, by the following vote:
AYES:
NOES:
ABSENT:
______________________________
JUSTIN JONES, Mayor
ATTEST:
_______________________________
CHARITY TATLOW, CMC
City Clerk
51