AGENDA
Regular Meeting
TULELAKE CITY COUNCIL
September 16, 2025
5:30 PM
Dial in Number: 712-432-3900 - Conference id: 419973 #
If you are unable to attend in person, join the meeting by dialing the number listed above and entering the Conference ID No.
1. Call to order the regular meeting of September 16, 2025.
2. Pledge of Allegiance
3. Approval of the August 19, 2025, regular meeting minutes. Discussion/Action.
4. Approval of the payments of bills. Discussion/Action.
5. Comments from the public.
This is the time set aside for citizens to address the Council on matters not on the agenda. Comments should be limited to matters within the jurisdiction of the Council. If your comment concerns an item on the agenda, please address the Council after that item is open for public comment. By law, the Council cannot discuss or act on matters that are not on the agenda. The mayor reserves the right to limit the duration of each speaker to three (3) minutes. Speakers may not give their time to others.
6. Approval to accept Council Member Ebinger's resignation letter. Discussion/Action. (Mayor Cordonier)
7. Appointment of City Council Member. Discussion/Action. (Mayor Cordonier)
8. Oath of office for appointed City Council Member. Discussion/Action. (City Clerk)
9. Approval of Resolution No. 25-12, A Resolution of the City Council of the City of Tulelake Authorizing the Execution of Agreements with the Weist Law Firm and California Municipal Advisors LLC for Pension Management, Rate Study, Capital Project Financing, and Related Services. Discussion/Action. (Cameron Weist)
10. Approval of Resolution 25-13, a Resolution of the City Council of the City of Tulelake Establishing a Replacement Housing Policy and Guidelines for its Implementation Consistent with State Law. Discussion/Action. (City Planner, Rico Tinsman)
11. Approval of Resolution 25-14, a Resolution of the City Council of the City of Tulelake Establishing Policy and Procedures for Waiving Merger Application Fees to Facilitate Small Lot Consolidation for the Development of Multifamily Housing. Discussion/Action. (City Planner, Rico Tinsman)
12. Zoom sales pitch from camera company about camera system in the City.
Discussion/Action. (Chief of Police)
a. Chief of Police, Tom Hoy
b. Chief Resilience Officer, Jenny Coelho
c. City Hall Administrator, Aissa Martinez
d. Director of Public Works, Jose Perez
COMMENTS FROM ADMIN AND STAFF:
17. Comments from City Engineer
18. Comments from City Attorney
19. Comments from City Building Inspector (Mike Britton)
20. Comments from Library Branch Manager (Kailee Wood)
21. Comments from City Treasurer (Sara Luscombe)
22. Comments from City Clerk (Casey Joiner)
23. Comments from Assistant City Admin (Christian Marquez)
24. Comments from City Staff (Anna Perez)
25. Comments from Code Enforcement Officer (Arturo Ramirez)
26. Comments from Council Member
27. Comments from Council Member Margie Cordonier
28. Comments from Council Member Teresa Williams
29. Comments from Council Member Bryan Hendricks
30. Comments from Council Member Tom Cordonier
31. Adjournment
Meetings are held in the Council Chambers at City Hall located at 591 Main Street, Tulelake, CA 96134.
Parties with a disability as provided by the American Disabilities Act who require special accommodations or aids to participate in a public hearing should make the request to City Hall Staff at least 48 hours prior to the meeting.
The City Attorney, Margaret Long, may appear by telephone from 2240 Court Street, Redding, CA 96001 (530) 691-0800.
MINUTES
Regular Meeting
TULELAKE CITY COUNCIL
August 19, 2025 - 5:30 PM
Mayor Tom Cordonier called the meeting to order at 5:30PM. Council Members Henry Ebinger, Margie Cordonier and Teresa Williams were present. Also in attendance were Chief of Police, Tom Hoy; City Treasurer, Sara Luscombe; City Clerk, Casey Joiner; City Hall Administrator, Aissa Martinez; Director of Public Works, Jose Perez; Assistant City Admin, Christian Marquez; City Staff, Anna Perez and Code Enforcement Officer, Art Ramirez.
Mayor Pro Tem, Bryan Hendricks and Chief Resilience Officer, Jenny Coelho were absent.
APPROVAL OF THE AUGUST 05, 2025, REGULAR MEETING MINUTES Council Member Cordonier made a motion for the approval of the August 05, 2025, regular meeting minutes.
Council Member Ebinger seconded the motion. All votes were aye. Motion carried. (Motion 25-150)
APPROVAL OF THE PAYMENT OF BILLS
Council Member Ebinger made a motion to approve paying the bills presented. Council Member Williams seconded the motion. All votes were aye. Motion carried. (Motion 25-151)
COMMENTS FROM THE PUBLIC
No comments.
APPROVAL OF RESOLUTION NO. 25-11, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULELAKE
ADOPTING POLICIES AND PROCEDURES FOR GRANTING PRIORITY SEWER AND WATER SERVICE FOR AFFORDABLE HOUSING DEVELOPMENTS PURSUANT TO GOVERNMENT CODE SECTION 65589.7 Mayor Cordonier made a motion that we make the finding that the project does not have the potential to result in a significant adverse effect on the environment and is exempt from environmental review pursuant to CEA Guidelines Section 15378(b)(2). Council Member Ebinger seconded the motion. All votes were aye. Motion carried. (Motion 25-152). Mayor Cordonier made a motion that we adopt Resolution 25-11 to establish policies and procedures for granting priority sewer and water service for affordable housing developments. Council Member Ebinger seconded the motion. All votes were aye. Motion carried. (Motion 25-153) APPROVAL OF RESOLUTION NO. 25-12, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULELAKE
AUTHORIZING THE EXECUTION OF AGREEMENTS WITH THE WEIST LAW FIRM AND CALIFORNIA MUNICIPAL
ADVISORS LLC FOR PENSION MANAGEMENT, RATE STUDY, CAPITAL PROJECT FINANCING, AND RELATED SERVICES Cameron Weist was not present. No action taken.
APPROVAL TO ACCEPT THE PROPOSAL SUBMITTED BY WHITNEY CANTRELL AS CITY FINANCE DIRECTOR Council Member Ebinger made a motion to accept the proposal submitted by Whitney Cantrell as City Finance Director. Council Member Cordonier seconded the motion. Three votes were aye with one abstaining.
Motion carried. (Motion 25-154)
DISCUSSION ABOUT ALL THE CARS PARKED ON MAIN STREET IN FRONT ON TULE TILLERS Police Chief Hoy commented that he would like to form a committee consisting of himself, Director of Public Works, Jose Perez and Kyle Verley, to help fix the issue of the additional vehicles and parking on Main Street and that they will have a solution within 60 days. Discussion only. No action taken.
DEPARTMENT HEAD UPDATES
Chief of Police: Tom Hoy commented that his recruit Jesse Alonso is doing really well at the police academy.
Chief Resilience Officer: Absent.
Interim City Hall Administrator: Aissa Martinez commented that there is still a need for volunteers to sit at the City's booth for fair.
Director of Public Works: Jose Perez commented that the new striper would be delivered the following day and that he would have the stripes repainted in time for fair.
City of Tulelake
Posted General Ledger Transactions - City Council Bills to Approve Bills Submitted for Approval on 09-02-2025 - API26005 for Weeks 08/20/2025-09/02/2025 Document
Name Document Number Amount Document Description Fund Code ADKINS ENGINEERING AND 61928 2,320.00 City Hall Parking Lot, TO#17 13 SURVEYING, INC.
ADKINS ENGINEERING AND 61955 1,050.00|TO#1 Misc. Services SURVEYING. INC.
41605 140.00 Portable Toilet - 7/2/2025 - 7/30/2025 - BP 04
AMERICAN SANITATION, INC
AMERICAN SANITATION, INC 41712 140.00 Portable Toilet - 7/27/2025 - 8/23/2025 - TS 01 BEAR TECHNOLOGIES 25748 660.00 Service Call to Install 3 New Computers 01 BEAR TECHNOLOGIES 25811 87.50 Endpoint Detection & Response 01 BEAR TECHNOLOGIES 25812 410.00 Monthly Server Maintenance BEAR TECHNOLOGIES 25813 110.00 Service Call for Updates C1 07/22/2025 94.28 First Aid Kits
CAPITAL ONE SPARK BUSINESS
CAPITAL ONE SPARK BUSINESS C1 07/30/2025 2.89 Operating Supplies CAPITAL ONE SPARK BUSINESS C1 07/31/2025 39.98 Flagpole Lights 01 CAPITAL ONE SPARK BUSINESS C1 08/01/2025 100.00 Keyboards for CH 01 CAPITAL ONE SPARK BUSINESS C1 08/04/2025 96.66 Office Supplies 01 CAPITAL ONE SPARK BUSINESS C1 08/07/2025 53.58 Wasp Killer 11 CAPITAL ONE SPARK BUSINESS C1 08/09/2025 48.22 Meal - PW 03 CAPITAL ONE SPARK BUSINESS C1 08/13/2025 53.40 Office Supplies 01 CAPITAL ONE SPARK BUSINESS C1 08/13/2025#2 127.11 Meal for Hank's Going Away 01 CAPITAL ONE SPARK BUSINESS C1 08/14/2025 28.50 Donuts for Training 01 CAPITAL ONE SPARK BUSINESS C1 08/14/2025 #2 24.54 City Promotion 01 CAPITAL ONE SPARK BUSINESS C1 08/14/2025 #3 3.99 City Promotion 01 ED STAUB & SONS PETROLEUM, 400227 251.29 Fuel - PD
ED STAUB & SONS PETROLEUM, 400239 1,132.27 Fuel - PW
HERE LAMBER COMPANY C260713 67.92 Trash Bags/Wasp Spray OFFICE TECHNOLOGIES, INC. INV55855 52.77 Kyocera - CH 01 PACIFIC POWER 41972561-002 8 09/25 1,969.63 Streetlights 11 PACIFIC POWER 41972561-003 6 09/25 137.90 Parks 01
PACIFIC POWER 41972561-004 4 09/25 160.58 C St 03
PACIFIC POWER 41972561-006 9 09/25 2,681.27 A6325 C Street 102 PACIFIC POWER 41972561-007 7 09/25 203.17 400 Bik Main Library 01 PACIFIC POWER 41972561-009 3 09/25 735.16 470 C St #A 01 PACIFIC POWER 41972561-011 9 09/25 2,372.58 1001 Dean Callas Way 03 Page: 1
City of Tulelake
Posted General Ledger Transactions - City Council Bills to Approve PACIFIC POWER 41972561-013 5 09/25 62.07 Park St 03
PACIFIC POWER 41998321-001 6 09/25 3,181.69 101 Siskiyou St 02 PACIFIC POWER 41998321-004 0 09/25 432.69 Main & ESt 01 SHERWIN-WILLIAMS CO 5291-0 1,235.25 Street Painting 11
SIERRA SPRINGS 24382086 082225 121.55 Sierra Springs Water 01 STATELINE AUTO PARTS SUPPLY, 622408 48.23 Power Service Diesel 02 THATCHER COMPANY OF 2025250104426 5,059.87 Chlorine
CALIFORNIA, INC.
VERIZON WIRELESS 6121020432 273.39 Verizon - PD 05
Total Bill Amount $25,769.93
Approved at the
Regular Meeting
Pay Dates: 08/29/2025 on September 02,
PAY PERIOD: 08/10/2025-08/23/2025 2025 Fund Account Codes:
Police Department:
(3 Employees) $4,803.07 01- General Fund
Chief Resilience Officer (1
Employee) $2,228.48 02- Enterprise Fund - Water
Public Works:
(6 Employees) $7,280.27 03- Enterprise Fund - Sewer
City Hall: (5 Employees,
including Library & Custodial) $5,139.77 04- Enterprise Fund - Garbage Council & Elected Officials:
(7 persons) $2,054.90 05- Police Personnel (COPS Grant) 11- Gas Tax Fund (Streets)
Total Amount of Payroll DD's $21,506.49 13- Local Transportation (TDA) Total Amount Submitted for
Approval - September 02,
2025: $47,276.42
Page: 2
City of Tulelake
Posted General Ledger Transactions - City Council Bills to Approve Bills Submitted for Approval on 09-16-2025 - API26006 for Weeks 09/03/2025-09/16/2025 Document
Name Document Number Amount Document Description Fund Code BANK OF AMERICA BUSINESS 229441 52.70 Fuel- PD 05
CARD
BANK OF AMERICA BUSINESS 257901 72.00 Fuel- PD 05
BANK OF AMERICA BUSINESS 378089 72.33 Fuel- PD 05
BANK OF AMERICA BUSINESS 550119 30.02 Fuel- PD 05
CARD
BANK OF AMERICA BUSINESS 575697 107.94 Fuel- PD 01
CARD
BANK OF AMERICA BUSINESS 592008 5.99 Fuel- PD 01
CARD
BANK OF AMERICA BUSINESS 925873 107.64 Fuel- PD 101
CARD
CITY OF WEED 1763 807.89 Building Inspector 8/6, 8/13, 8/20, 8/27, 01 DEAN-SLABAUGH LLC 2025-2026-003 891.66 Monthly Rent For J. Alonso 05 ED STAUB & SONS PETROLEUM, 12935589 100.00 Tank Rent - CH 01 EN STAUB & SONS PETROLEUM, 405293 537.99 Fuel - PD 01
ED STAUB & SONS PETROLEUM, 405304 1,121.15 Fuel - PW 01 INC
11304 55.69 Operating Supplies 01
HOME DEPOT CREDIT SERVICES
KAILEE WOOD KW 09/04/2025 64.45 Reimbursement Fair Baskets 01 LANGAN ENGINEERING AND 1810#90056915 16,088.75 Environmental Services 01
WVIRONMENTAL SERVICES, INC
ERRILL LUMBER COMPAN C260778 18.21 Water Operating Supplies 8/6/2025 02 MERRILL LUMBER COMPANY C261115 30.46 City Promotion 8/12/2025 01 MERRILL LUMBER COMPANY C261995 88.90 Paint
MERRILL LUMBER COMPANY C262483 55.92 17.500Z Wasp Spray 09/08/2025 MIP FUND ACCOUNTING 0-85265 2,888.83 MIP Accounting Maintenance and Support 101 Plan
PRENTICE LONG, PC 7814 693.00 Attorney Fees 01
SPRING STREET ANALYTICAL LLC 2391 130.00 Water Testing 02 STACY & DENNIS 25CW-1872 130.00 IT Support CH 01
STATELINE AUTO PARTS SUPPLY, 623793 275.13 Maintenance on Vehicles - PW 02 STATELINE AUTO PARTS SUPPLY, 623857 139.81 Maintenance on Vehicle/Operating Supplies 02 STATELINE AUTO PARTS SUPPLY, 623943 21.44 Operating Supplies 02 CLOGY ARCHITECTURE 1836 11,250.00 TCVC Phase 1 01
CORPORATION
Woodhouse Farming & CO S282451 30.00 Weight Fees 4
Woodhouse Farming & CO S282461 30.00 Weight Fees 4
Woodhouse Farming & CO S282475 30.00 4
Woodhouse Farming & CO S282488 15.00 4
Total Bill Amount $35,942.90
Page: 1
City of Tulelake
Posted General Ledger Transactions - City Council Bills to Approve Approved at the
Regular Meeting
Pay Dates: 09/12/2025 on September 16,
PAY PERIOD: 08/24/2025-09/06/2025 2025 Fund Account Codes:
Police Department:
(3 Employees) $7,301.50 01- General Fund
Chief Resilience Officer (1
$2,228.48 02- Enterprise Fund - Water
Employee)
Public Works:
(6 Employees) $7,209.62 03- Enterprise Fund - Sewer
City Hall: (5 Employees,
including Library & Custodial) $5,184.17 04- Enterprise Fund - Garbage Council & Elected Officials:
(7 persons) $0.00 05- Police Personnel (COPS Grant)
11- Gas Tax Fund (Streets)
Total Amount of Payroll DD'S $21,923.77 13- Local Transportation (TDA) Total Amount Submitted for
Approval - September 16,
2025: $57,866.67
Page:
CITY OF TULELAKE
establishe OATH OF OFFICE
for the office of Tulelake City Council Member
1, _ do solemnly swear (or affirm) that I will support
and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.
Signature
Term Expires with term expiring: December 2028
State of California
County of Siskiyou
Subscribed and sworn to (or affirmed) before me on,
This 16th day of September, 2025
by Casey Joiner, City Clerk
Proved to me on the basis of satisfactory evidence to be the person who appeared before me.
(Seal) Signature
RESOLUTION NO. 2025-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULELAKE
AUTHORIZING THE EXECUTION OF AGREEMENTS WITH THE WEIST LAW FIRM
AND CALIFORNIA MUNICIPAL ADVISORS LLC FOR PENSION MANAGEMENT,
RATE STUDY, CAPITAL PROJECT FINANCING, AND RELATED SERVICES WHEREAS, the City of Tulelake ("City") is a member of the California Public Employees' Retirement System ("CalPERS") and is obligated under the Public Employees' Retirement Law and its CaPERS contract to fund pension benefits and amortize unfunded accrued liabilities; and
WHEREAS, the City must also undertake Proposition 218-compliant rate studies for its water, wastewater, and solid waste services to ensure that utility rates are proportional, transparent, and compliant with applicable legal requirements; and WHEREAS, the City is pursuing funding for the Tulelake Cultural Visitor Center and intends to apply for and secure grant and loan funding from the United States Department of Agriculture ("USDA") for the City's upcoming Water Improvement Project; and WHEREAS, the City requires the services of qualified legal and financial professionals to assist in the development and implementation of a pension management plan and policy, to conduct long-term financial plans and rate studies, and to provide legal and financial advisory services in connection with potential financing transactions and capital projects; and
WHEREAS, The Weist Law Firm will provide bond counsel services, including legal support for pension planning, rate studies, and financing transactions, under the terms set forth in the Agreement for Bond Counsel Services; and
WHEREAS, California Municipal Advisors LLC ("CalMuni") will provide municipal advisory and consulting services, including financial modeling, rate study preparation, capital financing structuring, and USDA funding support, under the terms set forth in the Agreement for Consulting Services; and
WHEREAS, both agreements have been structured to minimize costs to the City by making all financing-related fees contingent upon the successful closing of a financing transaction, with such fees to be paid from financing proceeds rather than City funds; and WHEREAS, the City Council finds that entering into these agreements is in the best interest of the City to obtain necessary expertise, maintain compliance with applicable laws, and position the City to secure critical funding for infrastructure improvements and long-term financial stability.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Tulelake as follows:
1 Section 1. Recitals and Findings. The City Council hereby specifically finds and declares that each of the statements, findings and determinations of the City set forth in the recitals set forth above are true and correct and are incorporated herein by reference.
Section 2. Authorized Representatives. The Mayor, City Manager and Chief Resilience Officer, and any other person authorized by the City Manager to act on behalf of the City shall each be an "Authorized Representative" of the City for the purposes of structuring and providing for the matter to be brought back to the City Council for further consideration, and are hereby authorized, jointly and severally, in each of their discretion, to effectuate the actions which the City Council has approved in this Resolution.
Section 3. Approval of Agreements for Professional Services. The City Council approves the agreement for bond counsel services with the Weist Law Firm and the agreement for consulting services with California Municipal Advisors LLC, each in substantially the form on file with the City Clerk. The Mayor or City Manager are each authorized and directed to execute such agreements for and on behalf of the City.
Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED AND ADOPTED by the City Council of the City of Tulelake at a regular meeting thereof held on the 19th day of August 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
2 CITY OF TULELAKE
AGENDA REPORT
MEETING DATE: August 19, 2025
TO: Honorable Mayor and Members of the City Council
FROM:
SUBJECT: Resolution No. 2025-XXX, Approving Agreements with The Weist Law Firm and California Municipal Advisors LLC for Pension Management, Rate Study, Capital Project Financing, and Related Services
RECOMMENDED COUNCIL ACTION
Staff recommends the City Council authorize the Mayor to execute agreements with:
1. The Weist Law Firm for bond counsel services; and
2. California Municipal Advisors LLC (CalMuni) for municipal advisory and consulting services,
to provide pension management planning, Proposition 218 rate study support, cultural facility financing assistance, USDA loan and grant application support, and other related services as described in each agreement.
BACKGROUND
The City faces several interrelated financial and infrastructure challenges that require specialized legal and financial expertise.
Key needs include:
• Development of a Pension Management Plan and Policy to address long-term CaPERS unfunded liabilities.
• Preparation of Proposition 218-compliant rate studies for water, wastewater, and solid waste services.
• Evaluation and pursuit of funding for the Tulelake Cultural Visitor Center Project.
• Structuring and securing USDA loan and grant funding for the City's upcoming Water Improvement Project.
As a small, rural community with limited in-house staff and financial resources, the City does not have the capacity to perform these highly specialized tasks internally.
Engaging qualified professionals will help ensure the work is completed correctly, on time, and in compliance with all applicable legal, financial, and regulatory requirements.
SUMMARY OF PROPOSED AGREEMENTS
1. The Weist Law Firm - Bond Counsel Services
Weist Law will serve as bond counsel, providing:
• Legal review and drafting of the Pension Management Plan and Policy, LTFP, and related resolutions.
• Legal oversight and document preparation for Proposition 218 rate setting. • Legal structuring and closing of any financing transactions, including USDA-related loans and grants.
2. California Municipal Advisors LLC - Municipal Advisory and Consulting Services CalMuni will serve as municipal advisor, providing:
• Financial modeling and scenario analysis for pension management and LTFP development.
• Rate study preparation and financial analysis for water, wastewater, and solid waste services.
• Financial planning and structuring for the Cultural Visitor Center Project and Water Improvement Project.
• Coordination of USDA funding applications, credit rating presentations, and financing team management.
FEE STRUCTURE AND COST CONTROL
Both agreements are structured to minimize risk and cost to the City:
• Contingent Transactional Fees: All fees for financing transactions are 100% contingent on the successful closing of the financing. If no financing occurs, the City pays nothing for those services.
• Hourly and Fixed Fees for Planning Work: Pension management planning, rate studies, and other non-transactional work are billed on an hourly or capped basis, with clear "not-to-exceed" amounts.
• Financing Fee Recovery: For any financing completed, fees for Weist Law and CalMuni will be built into the financing plan and paid from proceeds, not from the City's general fund or operating revenues.
• Shared Commitment to Cost Efficiency: Both firms have committed to keeping fees as low as possible given the City's size and resources, while delivering comprehensive services that protect the City's legal and financial interests.
BENEFITS TO THE CITY
• Access to specialized legal and financial expertise the City does not have in-house. • Compliance assurance with complex legal frameworks (CaPERS law, Proposition 218, USDA funding requirements).
• No out-of-pocket transactional cost for financings unless successfully completed. • Enhanced ability to secure grants and low-cost financing for critical infrastructure. • Long-term strategies for pension cost control and financial sustainability.
FISCAL IMPACTS
Planning-related services will be billed at agreed hourly rates with "not-to-exceed" limits as stated in each agreement. Financing-related fees are contingent and will be paid from financing proceeds.
ALTERNATIVES
The City Council's options are:
1. Adopt the Resolution without any changes;
2. Adopt the Resolution with changes and revisions; or
3. Reject the Resolution entirely.
Attachments:
1. Attachment A - Resolution No. 2025-XXX
2. Attachment B - CalMuni Professional Services Agreement
3. Attachment C - WeistLaw Professional Services Agreement
CITY OF TULELAKE
STAFF REPORT TO CITY COUNCIL
September 16, 2025
REPLACEMENT HOUSING POLICY AND GUIDELINES
SUMMARY: The project consists of proposed city policy for requiring replacement housing in accordance with state law. Included are guidelines with which to implement the policy.
REQUEST OF CITY The City Council is being asked to: (1) Review draft city policy and COUNCIL: guidelines; (2) Consider an exemption from the California Environmental Quality Act (CEQA); (3) Provide direction to staff regarding any desired changes; and (4) If no revisions are desired, adopt draft Resolution 25-13 establishing a replacement housing policy and guidelines consistent with ENVIRONMENTAL: The project is exempt from environmental review pursuant to CEQ Guidelines Section 15378(b)(2)
SUGGESTED To adopt the draft replacement housing policy and guidelines, two MOTIONS: suggested motions are provided below. Each motion should be made it sequence, with the second motion made only after the first motion ha been successfully caried.
1) I move that we make the finding that the project does not have the potential to result in a significant adverse effect on the environment and Ss exem 155m environmental review pursuant to CELA Guidelines 2) I move that we adopt Resolution 25-13 to establish replacement housing policy and guidelines consistent with state law.
ATTACHMENTS: A. Resolution 25-13, A Resolution of the City Council of the City of Tulelake Establishing a Replacement Housing Policy and Guidelines for its Implementation Consistent with State Law
Exhibit A - Replacement Housing Policy
PROJECT OVERVIEW
The California Legislature has adopted three state laws - the Density Bonus Law, Housing Element Law, and the Housing Crisis Act of 2019 - to ensure that new housing developments do not reduce the total number of existing dwellings and do not reduce the number of dwellings housing lower income persons. In most instances, a housing project must create at least as many housing units as will be demolished. Projects must also replace units rented by lower income households with units affordable to lower income tenants and, in most instances, must provide relocation and other benefits to lower income tenants who are displaced by the new construction.
Program 3.2.1 of the City's certified 6th Cycle Housing Element states that the City will adopt a policy requiring replacement affordable housing units in specified instances. The purpose of adopting a Replacement Housing Policy & Guidelines Page 1
replacement housing policy is to insure that, when certain housing units are removed, the housing units are replaced as required by state law. Specifically, Housing Element Program 3.2.1 states:
Program 3.2.1 Establish a Replacement Housing Policy
To ensure the continued availability of housing for low- and very low-income housing, the City shall prepare and adopt a replacement housing policy consistent with Government Code Section 65583.2(g)(3). The City will adopt a policy and will require replacement housing units subject to the requirements of Government Code section 65915, subdivision (c)(3) on sites identified in the City's site inventory when any new development (residential, mixed-use or nonresidential) occurs on a site that is identified in the inventory meeting the following conditions:
• Currently has residential uses or within the past five years has had residential uses that have been vacated or demolished, and
• Was subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low-income, or • Subject to any other form of rent or price control through a public entity's valid exercise of its police power, or
• Occupied by low or very low-income households.
The City's policy will also consider how to provide disclosure for properties subject to replacement housing for future property owners.
The City is now in the process of implementing Housing Element Program 3.2.1 and has received approval from the California Department of Housing and Community Development (HCD) to use of a portion of remaining SB 2 Planning Grant funds to do so. The draft replacement housing policy is included as Exhibit A to draft Resolution 25-13. Included with the policy are guidelines for its implementation. The guidelines provide details on the applicability of state law relative to the requirement for replacement housing (see Attachment A).
ENVIRONMENTAL RECOMMENDATION
Pursuant to California Environmental Quality Act (CEQA) Section 15378(b)(2), "Continuing administrative or maintenance activities, such as purchases for supplies, personnel-related actions, general policy and procedure making..." are not projects under CEQA.' Accordingly, the adoption of a replacement housing policy in accordance with state law is not subject to environmental review.
STAFF RECOMMENDATION
The draft replacement housing policy and guidelines in Exhibit A to draft Resolution 25-13 has been prepared consistent with Density Bonus Law, Housing Element Law, and the Housing Crisis Act of 2019 and is presented for the City Council's consideration (see Attachment A). To enact the replacement housing policy, planning staff recommends that the City Council:
• Adopt Draft Resolution 25-13, A Resolution of the City Council of the City of Tulelake Establishing a Replacement Housing Policy and Guidelines for its Implementation Consistent with State Law.
Suggested motions to this effect are provided on the first page of the staff report. 1 While exceptions are defined in statute, none are applicable to proposed policies and procedures.
Replacement Housing Policy & Guidelines Page 2
ATTACHMENT A
DRAFT RESOLUTION 25-13
RESOLUTION 25-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULELAKE
ESTABLISHING A REPLACEMENT HOUSING POLICY AND GUIDELINES FOR ITS
IMPLEMENTATION CONSISTENT WITH STATE LAW
WHEREAS, the California legislature has declared the lack of affordable housing a matter of vital statewide importance; and
WHEREAS, to ensure an adequate supply of affordable housing in the State, replacement housing requirements are established by Government Code Section 65915(c)(3) (State Density Bonus Law).
Government Code Section 65583.2(g)(3) (Housing Element Law), and Government Code Sections 66300.5 - 66300.6 (the Housing Crisis Act of 2019), collectively State Replacement Housing Law; and WHEREAS, State Replacement Housing Law requires that every city and county require replacement housing units when certain housing units are removed from sites identified in the housing element site inventory; and
WHEREAS, the City of Tulelake's Housing Element (6"h Cycle) includes Program 3.2.1 for the adoption of a replacement housing policy consistent with State Replacement Housing Law; and Tulate nas p, a red are the conned ayal bity or bout and very low one house i or and
WHEREAS, adoption of the replacement housing policy implements Housing Element Program 3.2.1 and allows the City of Tulelake to be in compliance with State Replacement Housing Law.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Tulelake adopts the following policy: "Requirements for Replacement Housing Units on Sites Identified in the City's Site Inventory" attached hereto as Exhibit "A."
IT IS HEREBY CERTIFIED that the foregoing Resolution 25-13 was duly adopted on a motion by and seconded by at a regular meeting of the City of
Tulelake City Council held on the 16'h day of September 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF TULELAKE CITY COUNCIL
Tom Cordonier, Mayor
WITNESS, my hand and seal this 16"h day of September 2025 Casey Joiner, City Clerk
"Exhibit A" to Resolution 25-13
REQUIREMENTS FOR REPLACEMENT HOUSING UNITS ON SITES
IDENTIFIED IN THE CITY'S SITE INVENTORY
I. PURPOSE
The purpose of this policy is to ensure the continued availability of low- and very low-income housing in the City of Tulelake through the requirement for replacement housing when certain housing units are removed from sites identified in the City's Housing Element site inventory.
Il. BACKGROUND
Replacement housing requirements are established by Government Code Section 65915(c)(3) (State Density Bonus Law), Government Code Section 65583.2(g)(3) (Housing Element Law), and Government Code Sections 66300.5 - 66300.6 (the Housing Crisis Act of 2019), collectively State Replacement Housing Law. Program 3.2.1 of the City's 6 Cycle Housing Element requires that the City adopt a replacement policy consistent with Government Code Sections 65583.2(g)(3) and 65915(c)(3).
IlI. POLICY
A. REQUIREMENT FOR REPLACEMENT HOUSING
It is the policy of the City of Tulelake to not approve or issue a discretionary or ministerial permit for any development project unless the development project meets all of the requirements of State Replacement Housing Law.
B. DISCLOSURE TO PROPERTY OWNERS
When the City requires recordation of a covenant, or enacts a law or ordinance, restricting rents to levels affordable to persons and families of low or very low-income, the City shall require that a notice to future property owners of affected properties be recorded to inform them that the properties may be subject to replacement housing requirements in accordance with State Replacement Housing Law and City Policy.
IV. GUIDELINES
A. INTRODUCTION
The Legislature has adopted three state laws - the Density Bonus Law, Housing Element Law, and the Housing Crisis Act of 2019 - to ensure that new housing developments do not reduce the total number of existing dwellings and do not reduce the number of dwellings housing lower income persons. In most instances, a housing project must create at least as many housing units as will be demolished. Projects must also replace units rented by lower income households with units affordable to lower income tenants and, in most instances, must provide relocation and other benefits to lower income tenants who are displaced by the new construction.
Replacement housing requirements have applied to projects requesting a density bonus since 2015, and those requirements also apply to any site listed in a jurisdiction's 6t Cycle Housing Element. The Housing Crisis Act of 2019 and amendments effective January 1, 2022, and January 1, 2024, expanded that requirement to any housing development containing one or more units that proposed to demolish any existing units and most nonresidential developments.
The purpose of the replacement requirements is to prevent the loss of housing units and the displacement of lower income households. State law does not allow local agencies to approve housing unless the proposed development complies with the applicable replacement housing requirements described below.
B. STATE DENSITY BONUS LAW
1) When do replacement housing requirements apply under Density Bonus Law? State Density Bonus Law (Government Code Sections 65915 - 65918) is a mechanism by which housing developers may receive more favorable development requirements from local governments in exchange a state mandate, meaning any developer who meets the requirements of State Density Bonus Law is for a commitment to build or donate land for affordable housing or senior housing units. Density bonus is entitled to receive the density bonus and other benefits (including incentives, waivers and reductions of parking standards).
Where a density bonus project proposes to demolish existing housing, or where rental housing existed on the site in the past five years, the applicant must comply with the replacement housing requirements in State Density Bonus Law (Government Code Section 65915(c)(3)). In accordance with state law, a project is ineligible for a density bonus or any other incentives or concessions under State Density Bonus Law unless the applicant conforms with the replacement housing requirements.
These replacement housing requirements apply to any project requesting a density bonus regardless of the applicability of the Housing Crisis Act of 2019 (Government Code Sections 66300.5-66300.6).
Replacement housing requirements under State Density Bonus Law do not apply to density bonus projects that propose to develop projects where 100 percent of the units are affordable to lower income households (although these projects are subject to certain provisions of the Housing Crisis Act of 2019).
They also do not apply to any density bonus applications that were submitted to or processed prior to January 1, 2015.
2) What types of units must be replaced?
State Density Bonus Law requires the replacement of certain units that either now exist or that existed on the site in the last five years preceding submission of the development application. These units are those that are, or have been at any time during the last five years preceding submission of the development application:
• Subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; or
• Subject to some form of rent or price control through a public entity's valid exercise of its police power; or
• Occupied by lower or very low-income households.
These units are collectively referred to as "Density Bonus Protected Units" throughout these guidelines. 3) How does a jurisdiction determine whether a unit must be replaced? As required by State Density Bonus Law, Tulelake requests the following information from applicants to determine compliance with replacement housing requirements. Below is a list of the information that Tulelake requires from density bonus applicants:
a. Restricted Affordable Lower Income Units: Indicate the number of units by bedroom size existing on the site in the past five years that were at any time subject to a recorded covenant, ordinance, or law that restricted rents or prices to be affordable to lower or very low-income households.
b. Units Subject to Rent Control or Price Control: Indicate the number of units by bedroom size on the site that in the past five years have been subject to rent control (through either state law, a local rent control ordinance, or an inclusionary ordinance) or price control (through an inclusionary ordinance).
c. Incomes of Existing Tenant Households: Provide documentation of the names, property address, and current incomes of any households now occupying units on the site, by bedroom size of units. If current incomes are unknown, please indicate. d. If Any Units Are Still Occupied, Incomes of Households Formerly Occupying Vacant Units:
For any vacant units, provide documentation of the income of the last household occupying the unit, by bedroom size. If that household's income is unknown, please indicate. e. No Units Occupied; All Units Vacant or Demolished; Incomes of Former Tenants: If all units that existed on the site in the last five years are currently vacant or have been demolished, please indicate the maximum number of units, by bedroom size, that existed on the site in the past five years and the income of each household occupying a unit at the time when the maximum number of units existed on the site. If the income of those households is unknown, please indicate. f. Number of Units to be Demolished. If any dwelling units exist on the site, indicate how many units will be demolished by the project.
4) What are the requirements for the replacement units? If the project proposes to demolish one or more Density Bonus Protected Units, they must be "replaced" in accordance with the requirements below:
a. Occupied; Incomes Known: If the Density Bonus Protected Units are occupied at the time of submission of the density bonus application and the incomes of the households occupying the Density Bonus Protected Units are known, the proposed housing development must provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to and occupied by persons and families in the same or lower income category as those households in occupancy.
b. Occupied; Incomes Unknown: If the Density Bonus Protected Units are occupied at the time of submission of the density bonus application but the incomes of the households occupying the Density Bonus Protected Units are not known, very low and lower income tenants are (rebuttably) presumed to occupy the units in the same proportion as shown for renter households in the Department of Housing and Urban Development's (HUD) Comprehensive Housing Affordability Strategy (CHAS) database. The proposed housing development must provide units at affordable rent or affordable housing cost to be occupied by persons and families of very low and lower income in the same proportion as indicated by the CHAS data. All fractions must be rounded up. (Government Code Section 65915(c)(3)(B)(i)).
Density Bonuses).
EXAMPLE: A project proposes to demolish 20 existing units. The incomes of 10 tenant households are known. Five units are occupied by very low-income households and five units by higher income households. For the 10 units where the household incomes are unknown, the CHAS data shows that 25 percent of the renter households in the city are very low-income, and 10 percent are low income. Ten percent of 10 units = 1 low-income unit; 25 percent of 10 units =
2.5 very low-income units, which must be rounded up to 3 units. Therefore, the new project must include at least 8 very low-income units (5 known very low-income households and 3 assumed) and 1 low-income unit as replacement units. The developer could elect to add another very low- income unit in place of the low-income unit.
Table 1: Calculating Replacement Units with CHAS Data
Calculation for Unknown Replacement Units by
CHAS Percentage Incomes Income
Very low-income = 25% 10 units x 25% = 2.5 3 units
Low-income = 10% 10 units x 10% = 1 1 unit
c. Demolished and/or Vacated; Incomes Known: For Density Bonus Protected Units that were demolished or vacated in the last five years and the incomes of the last households in occupancy are known, the proposed housing development must provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household(s) in occupancy.
d. Demolished and/or Vacated; Incomes Unknown: For Density Bonus Protected Units that were demolished or vacated in the last five years and the incomes of the last households in occupancy are not known, lower income tenants are presumed to have occupied the units in the same proportion as lower income households rent units in the jurisdiction as shown in the HUD's CHAS database. The proposed housing development must provide units at affordable rent or affordable housing cost to, and occupied by, persons and families of lower income in the same proportion as indicated by the CHAS data. All fractions must be rounded up.
Equivalent Size. Regardless of which of the above-mentioned categories the units fall into, the development must provide at least the same number of units of "equivalent size" as the units replaced to be offered at an affordable rent or affordable housing cost. "Equivalent size" means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
Example: One three-bedroom unit could be replaced by three one-bedroom units, or one two- bedroom unit and one one-bedroom unit. However, three one-bedroom units could not be replaced with one three-bedroom unit, because the number of units must at least equal the number of units that need to be replaced.
Example: In the scenario where a three-bedroom unit is replaced by three one-bedroom units, for instance, all three of the one-bedroom units would need to be offered at the appropriate levels of affordability.
Replacement Unit Type. The units may be of any type (apartments, accessory dwelling units, townhomes, condominiums, duplexes, etc.) and may be for-sale or for rent.
Deed Restrictions Recorded. The affordable replacement units shall be subject to a recorded affordability restriction. Deed restrictions must be recorded restricting affordable replacement units, in accordance with the following:
• Rental Replacement Units. Rental replacement units must be subject to a deed restriction limiting occupancy to lower income households at affordable rents for 55 years. Affordable rent must be calculated as required by Health & Safety Code Section 50053. • For-Sale Replacement Units. For-sale replacement units must be sold to lower income buyers at an affordable cost and be subject to an equity-sharing agreement requiring that any profits at sale be shared with the local agency, unless the local ordinance requires long-term affordability.
Affordable housing cost must be calculated as required by Health & Safety Code Section 50052.5.
C. STATE HOUSING ELEMENT LAW
1) What is the relevance of Housing Element law to replacement housing? Each jurisdiction's housing element must include an inventory of land suitable and available for residential development to meet the jurisdiction's regional housing need allocation (RHNA) by income level. Sites are suitable for residential development if they are zoned appropriately and available for residential use during the planning period. All of these sites, at all income levels, must be included in the Housing Element and on a site inventory form prescribed by the Department of Housing and Community Development (HCD).
Some of these sites may include existing housing or may have contained rental housing in the past five years. If a project is proposed on one of these sites, the project is subject to the replacement housing requirements contained in State Density Bonus Law.
2) What are the replacement housing requirements for sites identified in a jurisdiction's Housing Element Sites Inventory?
Pursuant to Housing Element Law (Government Code Section 65583.2(g)(3)), Tulelake requires replacement of Density Bonus Protected Units consistent with the requirements set forth in State Density Bonus Law (Government Code Section 65915(c)(3)). These replacement housing requirements apply to all sites listed in the Housing Element, at all income levels (i.e., not just sites designated for lower income housing) and apply regardless of the applicability of the Housing Crisis Act of 2019.
Whenever a housing project is proposed on a site listed in Housing Element, Tulelake must determine if it contains existing rental housing or contained rental housing in the past five years. If so, Tulelake may need to require replacement housing. Whenever a project is proposed on a site listed in the Housing Element, the applicant is required to provide the same information as described in Section IV.B.3 above.
The replacement requirements are explained in detail in Section IV.B above.
D. HOUSING CRISIS ACT OF 2019 (SB 330)
The Housing Crisis Act of 2019 (SB 330) expanded and amended several existing State statutes, including the Permit Streamlining Act and Housing Accountability Act, with the goal of increasing production of new housing units, protecting existing housing units, and providing for an expedited review and approval process for housing development projects. Senate Bill 8 (SB 8), which was passed during the 2021 legislative session, made some key amendments to the Housing Crisis Act of 2019, including extending the provisions of SB 330 until January 1, 2030. Most recently, Assembly Bill 1218 (AB 1218), which was passed during the 2023 legislative session and went into effect on January 1, 2024, expanded the replacement housing requirements of the Housing Crisis Act of 2019 to nonresidential development projects, as further explained below. These requirements are contained in Government Code Sections 66300.5-66300.6.
1) When do replacement housing requirements apply under SB 330? Housing and Nonresidential Development. SB 330's replacement housing requirements, as amended by SB 8 and AB 1218, apply to both of the following:
A housing development project containing one (1) or more dwelling units and proposing to demolish existing (vacant or occupied) units, or a site where SB 330 Protected Units (defined below) were demolished in the previous five years.
A nonresidential development project proposing to demolish existing (vacant or occupied), or located on a site where SB 330 Protected Units were demolished in the previous five years, unless all of the following conditions apply:
• The project is an industrial use;
• The project site is entirely within a zone that does not allow residential uses; • The zoning applicable to the project site that does not allow residential uses was adopted prior to January 1, 2022; and
• The protected units that are or were on the project are or were nonconforming uses.
Application Submission Date. The replacement housing requirements apply only where the housing development project submits a complete application pursuant to Government Code Section 65943 on or after January 1, 2020.
Affected City or County. Tulelake is an "affected city" as determined and published by HCD. Therefore, the replacement housing requirements of the Housing Crisis Act of 2019 will apply to developments in Tulelake.
2) What types of units must be replaced?
If the project is a housing development project, then the project must create at least as many dwelling units as will be demolished. In addition, all SB 330 Protected Units must be replaced in the project, similar to the requirements to replace Density Bonus Protected Units.
For a nonresidential development project, the project must replace only the SB 330 Protected Units, and they may be located on- or off-site. SB 330 Protected Units are very similar to Density Bonus Protected Units, except that they also include those that have been withdrawn from rent or lease in accordance with the Ellis Act (Government Code Sections 7060, et seq.) within the 10 years preceding the submission of the application.
The other three categories of SB 330 Protected Units are identical to those identified as Density Bonus Protected Units. These units are those that are, or have been at any time during the last five years preceding submission of the development application, were:
• Subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low-income; or
• Subject to some form of rent or price control through a public entity's valid exercise of its police power; or
• Occupied by lower or very low-income households.
These units are collectively referred to as "SB 330 Protected Units" throughout these guidelines. 3) How does a jurisdiction determine whether a unit must be replaced? For any development project, the same information should be requested as for a density bonus application, and described in Section IV.B.3, with the following addition:
Units Withdrawn Pursuant to Ellis Act. Indicate the number of units by bedroom on the site that in the past ten years have been withdrawn from rent or lease pursuant to the Ellis Act. 4) What are the requirements for the replacement units? The requirements for replacing SB 330 Protected Units are identical to those for replacing Density Bonus Protected Units, as described in Section IV.B.4 above, with one exception for single unit projects:
Equivalent Size. Regardless of which of the above-mentioned categories the units fall into, the replacement units must be of "equivalent size" as the units replaced. "Equivalent size" is defined as containing at least the same total number of bedrooms as the units being replaced.
Exception: Single Unit Projects. Where the housing development project consists of a single residential unit on a site with a single SB 330 Protected Unit, the SB 330 Protected Unit may be replaced with a unit of any size at any income level.
5) What are the rights of the current occupants of the SB 330 Protected Units? Displaced residents, except unlawful occupants or occupants of a short-term rental that is rented for a period of fewer than 30 days, are entitled to relocation benefits and a right of first return under SB 330. a. All Displaced Residents:
Occupancy Until Six Months Before the Start of Construction. All existing residents must be allowed to remain in their units until six months "before the start of construction activities." Tulelake interprets the "start of construction activities" to mean the issuance of a permit for any type of construction on the site, including but not limited to demolition, grading, utility work, etc.
Right to Return if Demolition Does Not Proceed. All existing occupants that are displaced must be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned.
b. Lower-Income Residents of SB 330 Protected Units:
State Relocation Benefits. The developer must provide state relocation benefits to lower-income occupants of any protected units. These include moving expenses, relocation assistance, and payment of the difference, if any, between affordable rent and rent for a "comparable" unit for up to 42 months.
Right of First Refusal for New Unit. The lower-income occupants of SB 330 Protected Units are also entitled to a right of first refusal for a "comparable" unit in the development at affordable rent or affordable housing cost, with the exceptions listed below. A "comparable" unit must have the same number of bedrooms, have the same number of total rooms (including both permitted and unpermitted rooms), and be the same size as the unit being vacated.
Exception 1: This requirement does not apply where the development project consists of a single residential unit located on a site where a single SB 330 Protected Unit is being demolished.
Exception 2: This requirement also does not apply to units a housing development in which 100 percent of the units, exclusive of a manager's unit or units, are reserved for lower-income household, except that a right of first refusal must be offered to any occupant of an SB 330 Protected Unit who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
Single-Family Comparable Unit. If one or more single-family homes that qualify as SB 330 Protected Units are being replaced in a development project that consists of two or more units, "comparable unit " means either of the following: (1) a unit containing the same number of bedrooms if the single-family home contains three of fewer bedrooms; or (2) a unit containing three bedrooms if the single-family home contains four or more bedrooms. A "comparable unit" in this instance is not required to have the same or similar square footage or the same number of total rooms.
5. ADDITIONAL QUESTIONS
a. How do replacement housing requirements interact with other state laws? Replacement Units and Density Bonus. Replacement units may qualify a project for a density bonus. For instance, if 15 very low-income replacement units are required in a 100-unit project, the project would be eligible for a 50 percent density bonus and would not need to add any more affordable units. The affordable replacement units shall be counted towards the affordable units provided for purposes of calculating density bonus as set forth in Municipal Code Chapter 17.112 (Residential Density Bonuses).
Replacement Units and SB 9. As outlined in Section IV.4 above, the amendments to SB 330 extended the replacement housing provisions to housing development projects that propose to demolish one dwelling unit to construct one or more dwelling units. Any SB 9 project that proposes to demolish any units, or where SB 330 Protected Units were demolished in the past five years, or that is located on a site listed in the Housing Element, will be subject to the replacement housing requirements in SB 330.
SB 330, Density Bonus Law, and AB 1482. AB 1482, or the Tenant Protection Act of 2019, imposed rent caps statewide on many rental units. Units that are subject only to the rent caps in AB 1482 are considered "protected units" for the purposes of both State Density Bonus Law and SB 330. However, they do not need to be replaced unless they are also occupied by very low or low-income households or are subject to local rent control laws.
b. Do replacement housing requirements apply to illegal or unpermitted units? Neither SB 330 nor State Density Bonus Law reference the status of the unit when defining "protected units." Rather, whether or not a unit is a "protected unit" that must be replaced is determined by the income of the tenants, any deed restrictions, rent/price control status, and Ellis Act status. Therefore, the replacement housing obligations appear to apply even where the units to be demolished are illegal or unpermitted units.
c. Where must the replacement housing be located?
The Housing Crisis Act and State Density Bonus Law require that a housing development project must contain the replacement units, regardless of whether the number of units conforms with the zoning.
For a housing development project subject to SB 330, the replacement housing units cannot be provided in a separate housing development project.
For a nonresidential development project subject to SB 330, the required replacement housing may be located on a site other than the project site but must be located within the same jurisdiction. The project proponent may contract with another entity to development the required replacement housing but must ensure that the required replacement housing is developed prior to or concurrently with the development project.
6. SUMMARY CHECKLIST
The checklist below summarizes the suggested steps to take when determining the replacement housing obligations for any specific development project:
STEP 1: Determine whether the proposed housing development project is applying for a density bonus and/or was identified on the jurisdiction's Housing Element Sites Inventory and/or proposes to demolish existing units and/or whether units existed on the site in the last 10 years. • If yes, continue to Step 2.
• If no, stop here.
STEP 2: As part of the application for the housing development, require information about existing and former housing on the site as described in Sections IV.B.3 and IV.D.3. Consider retaining a relocation consultant if occupied housing exists on the site that will be demolished.
STEP 3: Based on the information gathered, determine whether there are or were any "protected units on the site within the last five years preceding the submission of the application for the housing development (or within the last 10 years if the Ellis Act was used). • If yes, continue to Step 4.
• If no, stop here.
STEP 4: Determine the number and affordability level of any required replacement housing units.
STEP 5: Determine whether the replacement units are adequate to qualify the project for the requested density bonus, or if more affordable units are required.
STEP 6: Determine the relocation rights of any existing occupants of the protected units.
STEP 7: The affordable replacement units shall be subject to a recorded affordability restriction and appropriate conditions of approval.
CITY OF TULELAKE
STAFF REPORT TO CITY COUNCIL
September 16, 2025
ablished
MERGER FEE WAIVERS FOR MULTIFAMILY HOUSING DEVELOPMENT
SUMMARY: The project consists of proposed city policy for offering fee waivers for parcel mergers to facilitate multifamily housing development. Included are findings for approving waiver requests.
REQUEST OF CITY The City Council is being asked to: (1) Review draft city policy and procedures; COUNCIL: (2) Consider an exemption from the California Environmental Quality Act (CEQA); (3) Provide direction to staff regarding any desired changes; and (4) If no revisions are desired, adopt draft Resolution 25-14.
ENVIRONMENTAL Exempt from environmental review pursuant to CEQA Guidelines Section RECOMMENDATION: 15378(b)(2).
SUGGESTED To adopt the policies and procedures, two suggested motions are provided MOTIONS: below. Each motion should be made in sequence, with the second motion made only after the preceding motion has been successfully caried. 1) I move that we make the finding that the project does not have the potential to result in a significant adverse effect on the environment and is exempt from environmental review pursuant to CEQA Guidelines Section 15378(b)(2).
2) I move that we adopt Resolution 25-14 establishing policy and procedure for waiving the merger application fee for multifamily housing development ATTACHMENTS: A. Draft Resolution 25-14, A Resolution of the City Council of the City of Tulelake Adopting Policy and Procedures for Waiving Merger Application Fees to Facilitate Multifamily Housing Development
Exhibit A - Merger Fee Waiver Policy
PROJECT OVERVIEW
State housing element law (Government Code Sec. 65580 et seq.) requires that the City update the General Plan Housing Element every eight years. In 2023, the City prepared an update of the Housing Element for the 6th Cycle planning period (2023-2031) that sets forth policies and programs to facilitate the preservation and development of housing. To better facilitate the development of multifamily housing, the City's 6th Cycle Housing Element includes Program 2.3.3, which states:
Program 2.3.3 Small Lot Consolidation
To facilitate the development of multifamily housing, the City will incentivize the consolidation of small lots by establishing written policy and procedures to grant fee waivers for parcel mergers when multifamily housing is proposed.
The City is now in the process of implementing this program and has received approval from the California Department of Housing and Community Development (HCD) to use of a portion of remaining SB 2 Merger Fee Waivers for Multifamily Housing Development Page 1 Planning Grant funds to do so. The draft policy and procedures are included as Exhibit A to draft Resolution 25-14 (see Attachment A).
At issue is that multifamily developments typically require more land area than the minimum lot sizes support. For example, neither the minimum lot size of 8,250 square feet in the City's High Density Residential (R-3) zoning district, nor the minimum 5,000 square feet in the City's Mixed Use (MU-2) district are sufficient sized to support the maximum densities allowed in those districts (16 units/acre).
For this reason, the combining of parcels is oftentimes necessary prior to the development of multifamily housing. Importantly, the California Department of Housing and Community Development (HCD) also identified this as a potential constraint to the development of housing during HCD's review of the City's draft Housing Element. To address the potential constraint, the City included a program in its certified Housing Element to facilitate lot mergers necessary for the development of multifamily housing by offering fee waivers as an incentive. The current fee for a merger is "at cost to the City, plus 10%" which is approximately $715 to $825.
Because the City would still incur cost to process a merger application, there would an under collection of revenue to offset impacts to the general fund as fee waivers for multifamily housing are granted. This means that when granting a fee waiver for a private development project, the City could be subsidizing private development at the expense of projects that benefit the community. This is potentially problematic per California's constitution, which prohibits "gifts" of public resources and funds. This prohibition includes gifts from agencies to private citizens and organizations, and it applies to all public agencies except charter cities. Consequently, when considering whether to grant fee waivers, the City Council must ask itself whether a valid public purpose justifies the use of public resources in the manner proposed. When fee waivers do not serve a valid public purpose, state law does not support approval of the request.
Therefore, the recommended findings for granting a fee waiver are:
• The applicant has satisfactorily demonstrated that the consolidation of small lots is necessary to facilitate the development of multifamily housing.
• The General Plan has identified a need for multifamily housing development and supports the development of multifamily housing in the location proposed. • The granting of the requested application fee waiver for the merger of parcels serves a valid public purpose that justifies the use of public resources in the manner proposed.
When the request is supported by the findings, the fee waiver can be approved.
ENVIRONMENTAL RECOMMENDATION
Pursuant to California Environmental Quality Act (CEQA) Section 15378(b)(2), "Continuing administrative or maintenance activities, such as purchases for supplies, personnel-related actions, general policy and procedure making..." are not projects under CEQA.' Accordingly, the adoption of policy and procedures for granting fee waivers for parcel mergers when multifamily housing is proposed is not subject to
STAFF RECOMMENDATION
The draft policy and procedures in Exhibit A to draft Resolution 25-14 has been prepared consistent with Housing Element Program 2.3.3 and is presented for the City Council's consideration (see Attachment A). To enact the policy and procedures, planning staff recommends that the City Council:
'While exceptions are defined in statute, none are applicable to proposed policies and procedures.
Merger Fee Waivers for Multifamily Housing Development Page 2 • Adopt Draft Resolution 25-14, A Resolution of the City Council of the City of Tulelake Adopting Policy and Procedures for Waiving Merger Application Fees to Facilitate Multifamily Housing Development.
Suggested motions to this effect are provided on the first page of the staff report.
Merger Fee Waivers for Multifamily Housing Development Page 3
ATTACHMENT A
DRAFT RESOLUTION 25-14
RESOLUTION NO. 25-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULELAKE
ESTABLISHING POLICY AND PROCEDURES FOR WAIVING MERGER APPLICATION FEES
TO FACILITATE SMALL LOT CONSOLIDATION FOR THE DEVELOPMENT OF
MULTIFAMILY HOUSING
WHEREAS, the California legislature has declared the lack of affordable housing a matter of vital statewide importance; and
WHEREAS, the City desires to facilitate the consolidation of small lots and ensure an adequate supply of affordable housing to incentivize the development of multifamily housing; and WHEREAS, the City's 6 Cycle Housing Element includes Program 2.3.3 to establish written policy and procedures for waiving merger application fees to incentivize small lot consolidation for multifamily housing development; and
Element Program 2 3; a of Tulelake has prepared policy and procedures consistent with Housing WHEREAS, adoption of the policy and procedures implements Housing Element Program 2.3.3.
Development" attached hereto as Exhibit "A."
IT IS HEREBY CERTIFIED that the foregoing Resolution 25-14 was duly adopted on a motion by and seconded by at a regular meeting of the City of
Tulelake City Council held on the 16'h day of September 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF TULELAKE CITY COUNCIL
Tom Cordonier, Mayor
WITNESS, my hand and seal this 16*h day of September 2025 Casey Joiner, City Clerk
"Exhibit A" to Resolution 25-14
APPLICATION FEE WAIVERS FOR CONSOLIDATION OF SMALL LOTS TO FACILITATE
MULTIFAMILY HOUSING DEVELOPMENT
PURPOSE
supply of affordable pousy is to faciliate the development of mutifamily housing and ensure an adequate II. BACKGROUND
The City of Tulelake's 6th Cycle Housing Element sets forth policies and programs to facilitate the preservation and development of housing for the 2023-2031 planning period. To better facilitate the development of multifamily housing, the Housing Element includes Program 2.3.3, which states:
Program 2.3.3 Small Lot Consolidation
To facilitate the development of multifamily housing, the City will incentivize the consolidation of small lots by establishing written policy and procedures to grant fee waivers for parcel mergers when multifamily housing is proposed.
III. POLICY AND PROCEDURES
A. Policy
To facilitate the development of multifamily housing, the City Council approves requests to waive the application fee for the consolidation of small lots when multifamily housing is proposed on the resultant parcel, subject to findings.
B. Procedures
Required Findings. Prior to approving a request to waive the planning application fee for a merger of parcels to facilitate multifamily housing development, the findings of the City Council shall be:
• The applicant has satisfactorily demonstrated that the consolidation of small lots is necessary to facilitate the development of multifamily housing.
• The General Plan has identified a need for multifamily housing development and supports the development of multifamily housing in the location proposed. • The granting of the requested application fee waiver for the merger of parcels serves a valid public purpose that justifies the use of public resources in the manner proposed.