Agenda — Yreka City Council, November 21, 2023

Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
Duane Kegg, Councilmember
Jason Ledbetter, City Manager
Rhetta Hogan, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Mark Gilman, Police Chief
Andrew Jared, City Attorney
Jerry Lemos, Fire Chief
Juliana Lucchesi, Community Dev. Director
Cyndy Prohaska, City Clerk

YREKA CITY COUNCIL MEETING AGENDA
November 21, 2023
Regular Session: 6:30 PM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA Phone 530-841-2386, Facsimile 530-842-4836, email: [email protected] Regular Meetings of the Yreka City Council are held the 1st and 3rd Tuesday of every month.

The full agenda packet can be found on the City’s website at www.ci.yreka.ca.us/AgendaCenter. Copies of all staff reports and documents subject to disclosure that relate to any item of business referred to on the agenda are available for public inspection 72 hours before each regularly scheduled meeting at the City Clerk’s office at City Hall, located at 701 4th St, Yreka, California during normal business hours. Any writing that is subject to disclosure that relates to an agenda item for open session distributed less than 72 hours prior to the meeting will be available for public inspection at the City Clerk’s office during normal business hours.

Materials distributed to a majority of councilmembers less than 72 hours before a meeting will be available for public inspection on the City’s website at www.ci.yreka.ca.us/AgendaCenter.

1. 6:30PM CALL TO ORDER REGULAR SESSION AND PLEDGE OF ALLEGIANCE:

2. SPECIAL PRESENTATIONS AND/OR ANNOUNCEMENTS:

This time slot is for informational presentations, appointments, or awards to be presented by the City Council or to the City Council.

3. PUBLIC COMMENTS:

Join this meeting via Zoom:

Link: https://us02web.zoom.us/j/6194957056
Meeting ID# 619-495-7056
Members of the public may also remotely listen to and participate in the meeting via teleconference. If you wish to listen or participate in this meeting through teleconference, simply dial into the conference number below, and enter the meeting ID#.

Conference call in Number: 669-900-6833 (Toll-Free 888 788 0099) “RAISE YOUR HAND” to provide public comment for your desired item. Speakers will be asked to identify themselves.
• Online: If you are online, click on “raise hand” on the bottom of your screen. • Mobile App: In the mobile app, you can raise your hand by tapping the "Raise Hand" option in the "More" tab. • Telephone: If you are calling in via telephone, to raise your hand, dial *9 (star-nine). Speakers will be called on by the last four digits of their phone number. To unmute yourself dial *6 (star-six).

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Public participation is welcomed and invited at all City Council meetings. This time is set aside for residents 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.

The City requests that persons addressing the City Council refrain from making personal, slanderous, profane, or disruptive remarks.

Councilmembers, when recognized by the Mayor, may ask clarifying questions of presenter but no action may be taken by the City Council during the public comment section of the meeting. Under the Brown Act, the City Council is prohibited from discussing or taking action on any item not listed on the posted agenda.

This time is set aside for residents to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Agenda. If your comments concern an item listed under the Public Hearing or New Business sections of the Agenda, please address the Council when that item is open for public comment.
• Please speak into the microphone from the podium. The podium electronically adjusts up and down to accommodate speaker.
• Please state your name for the record prior to providing your comments. • Please address the Council as a whole.
• If you have documents to present, please provide a minimum of seven (7) copies. These become a public record.
• Please limit your remarks to five (5) minutes.
• Since Council is unable to take action on issues not on the agenda, your matter may be referred to staff for follow up or be placed on a future agenda.

The public comment period is not intended to be a “Question and Answer” period or conversations with the Council or City staff.

4. CONSENT AGENDA:

Recommended City Council Action: Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented.

5. OLD BUSINESS: (none)

6. PUBLIC HEARINGS:

Public Hearing Protocol:
i. Mayor will describe the purpose of the Public Hearing. ii. City Staff will provide the Staff Report.
iii. City Staff will respond to questions from the City Council.

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iv. Mayor will open the Public Hearing.
v. Public wanting to comment will come to the podium, provide the City Clerk with their name and address, and provide their comments.
vi. Mayor will close the Public Hearing.
vii. City Council will deliberate and act on the item.

Finance Director
a. Agenda Title: Public Hearing and Introduction of Ordinance Regarding Proposed Water and Wastewater Utility Rate Increase
Introduction of Ordinance No. 876 An Uncodified Ordinance Of The City Council of the City of Yreka, California Determining That There Was No Majority Protest of the Proposed Water and Wastewater Rate Increase and Adopting Updated Water and Wastewater Service Rates and Superseding the Existing Rates Established By Resolution No. 2018-27and Finding The Ordinance Exempt From CEQA” and Pass the Ordinance to the next Council Meeting for a Second Reading and Its Possible Adoption.

Recommendation and Requested Action:
(i) Open Public Hearing, hear public comments, and close public hearing; (ii) Determine whether majority protest of the Proposed Water and Wastewater Rate Increase exists; and
(iii) Motion to accept the first reading of Proposed Ordinance No. 876 and pass the ordinance to the next Council meeting for a second reading and for adoption. b. Agenda Title: Approving the Development Impact Fee Report and Updating the City’s Capital Improvement Plan and Development Impact Fee (Rate) Program The City is reporting on its annual collection and use of fee revenue received during the fiscal year 2022-2023.

Recommended City Council Action:
(i) Conduct Public Hearing, hearing public comments, close public hearing (ii) Motion to approve City Council Resolution 2023-53 approving the Development Impact Fee Report and Updating the City’s Capital Improvement Plan and Development Impact Fee (Rate) Program. 7. NEW BUSINESS: (none)

8. CITY MANAGER/STAFF REPORTS:

City Manager and Staff may make brief announcements or reports at this time.

9. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

AB 1234* Conference and Meeting Report (verbal, if any) *(In accordance with AB 1234, Councilmembers shall make a brief report or file a written report on any meeting/event/conference attended at City expense.) Members of the Council may make brief announcements, reports, or request staff to report to Council on any matter at a subsequent meeting.

10. ADJOURNMENT:

In compliance with the requirements of the Brown Act, notice of this meeting has been posted in a publicly accessible place, 72 hours in advance of the meeting.

Public Hearings: If you wish to challenge in court any of the matters on an agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public Yreka City Council Meeting November 21, 2023 3 of 99
hearing or in written correspondence received by the City at or before the hearing. Any person seeking to challenge a City Council decision made as a result of a proceeding in which by law a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action 90 days following the date on which the decision becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure 1094.6 to determine how to calculate when a decision becomes “final.”
"CHALLENGING DECISIONS OF CITY ENTITIES The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City of Yreka is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision, including without limitation Government Code section 65009 applicable to many land use and zoning decisions, Government Code section 66499.37 applicable to the Subdivision Map Act, and Public Resources Code section 21167 applicable to the California Environmental Quality Act (CEQA). Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. Government Code section 65009 and 66499.37, and Public Resources Code section 21167, impose shorter limitations periods and requirements, including timely service in addition to filing. If a person wishes to challenge the above actions in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Yreka, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies." The City of Yreka does not discriminate on the basis of race, color, national origin, religion, age, gender, sexual orientation, disability, or any other legally protected classes in employment or provision of services. In compliance with the Americans with Disabilities Act, those requiring accommodations for this meeting should notify the City Clerk 48 hours prior to the meeting at (530) 841-2386 or by notifying the Clerk at [email protected].

AFFIDAVIT OF NOTIFICATION AND POSTING

STATE OF CALIFORNIA)

COUNTY OF SISKIYOU) SS

CITY OF YREKA )
I, Cyndy Prohaska, City Clerk for the City of Yreka, hereby declare under penalty of perjury that a copy of the above Agenda of the Regular Meeting of the City Council of the City of Yreka, California, was delivered and/or notice by email not less than 72 hours, before the hour of 6:30PM on November 21, 2023 to the members of the governing agency, and caused the agenda to be posted on the City’s website at www.ci.yreka.ca.us and posted at Yreka City Hall, 701 Fourth St., Yreka, California. /s/: Cyndy Prohaska
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Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
Duane Kegg, Councilmember
Jason Ledbetter, City Manager
Rhetta Hogan, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Mark Gilman, Police Chief
Andrew Jared, City Attorney
Jerry Lemos, Fire Chief
Juliana Lucchesi, Community Dev. Director
Cyndy Prohaska, City Clerk

YREKA CITY COUNCIL MEETING MINUTES
November 7, 2023
Regular Session: 6:30 PM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA Phone 530-841-2386, Facsimile 530-842-4836, email: [email protected] Regular Meetings of the Yreka City Council are held the 1st and 3rd Tuesday of every month.

1. 6:30PM CALL TO ORDER REGULAR SESSION AND PLEDGE OF ALLEGIANCE:

The meeting was called to order at 6:30PM. Councilmember Drake Davis was absent.

2. SPECIAL PRESENTATIONS AND/OR ANNOUNCEMENTS:

This time slot is for informational presentations, appointments, or awards to be presented by the City Council or to the City Council.
a. Oath of Office Swearing-in Ceremony for City Clerk, Ms. Cyndy Prohaska by Assistant City Manager and Acting City Clerk, Hogan.
b. 16th Annual Read Across Siskiyou Event, First 5 Siskiyou c. Highway 3 - Yreka Pavement Rehabilitation Project Update, Ms. Catherine Low, D2 PPM

3. PUBLIC COMMENTS:

Public participation is welcomed and invited at all City Council meetings. This time is set aside for residents 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.

The City requests that persons addressing the City Council refrain from making personal, slanderous, profane, or disruptive remarks.

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• Please speak into the microphone from the podium. The podium electronically adjusts up and down to accommodate the speaker.
• Please state your name for the record prior to providing your comments. • Please address the Council as a whole.
• If you have documents to present, please provide a minimum of seven (7) copies. These become a public record.
• Please limit your remarks to five (5) minutes.
• Since Council is unable to take action on issues not on the agenda, your matter may be referred to staff for follow up or be placed on a future agenda.

The public comment period is not intended to be a “Question and Answer” period or conversations with the Council or City staff.

Public comment was heard from Mike Grifantini, Melissa Cummins, Carolyn Anderson, Jay Martin, Molly Amack, and Anna Johnson.

4. CONSENT AGENDA:

All matters listed under the consent agenda are considered routine and non-controversial and will be enacted by one motion unless any member of the Council wishes to remove an item for discussion, a. Approval/ratification of payments issued from October 08, 2023, through October 27, 2023. b. Approval of Minutes of the Regular Meeting held October 17, 2023. c. Adopt Resolution 2023-47 Declaring City-Owned Property (APN 062-031-190) as Surplus Land. d. Resolution 2023-52 Purchase Sale Agreement of Carnegie Library. e. Approval of the Proclamation of the 16th Annual Read Across Siskiyou event. f. Motion to Approve Letter of Support for Siskiyou County Gold Display. g. Motion to Approve the Restructure of Police Sergeant position to a Police Lieutenant position.

Recommended City Council Action: Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented.

Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented. Councilmember Kegg noticed that he is recusing himself from items 4.a. and 4.c. due to financial conflict and Councilmember Baker requested that item 4.g. be pulled from the consent agenda items for discussion.

Motion to approve consent agenda items 4.a. and 4.c. where Councilmember Kegg has recused himself due to conflict.

MOTIONED: Councilmember Baker
SECONDED: Councilmember McCoy
AYES: Councilmembers Baker, McCoy, and Middleton
NOES: -0-
ABSENT: Councilmember Davis
RECUSAL: Councilmember Kegg
Motion to approve consent agenda items 4.b., 4.d., 4.e., and 4.f.

MOTIONED: Councilmember McCoy
SECONDED: Councilmember Kegg
AYES: Councilmembers Baker, Kegg, McCoy, and Middleton
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NOES: -0-
ABSENT: Councilmember Davis
After discussion, a motion was made to approve consent agenda item 4.g.

MOTIONED: Councilmember Baker
SECONDED: Councilmember Middleton
AYES: Councilmembers Baker, Kegg, McCoy, and Middleton
NOES: -0-
ABSENT: Councilmember Davis

5. OLD BUSINESS: (none)

6. PUBLIC HEARINGS: (none)
Public Hearing Protocol:
i. Mayor will describe the purpose of the Public Hearing. ii. City Staff will provide the Staff Report.
iii. City Staff will respond to questions from the City Council. iv. Mayor will open the Public Hearing.
v. Public wanting to comment will come to the podium, provide the City Clerk with their name and address, and provide their comments.
vi. Mayor will close the Public Hearing.
vii. City Council will deliberate and act on the item.

7. NEW BUSINESS:

City Manager
a. Title: CDBG Main Street Construction Mitigation Small Business Grant Program Guidelines Quintin Gaddy, Program Director for Business Development is here to discuss the Yreka CDBG Main Street Construction Mitigation Small Business Grant Program Guidelines. This program is made possible with funding from the California Department of Housing and Community Development.

Recommended City Council Action: Motion to Approve the City of Yreka’s CDBG Main Street Construction Mitigation Small Business Grant Program Guidelines.

MOTIONED: Councilmember Kegg
SECONDED: Councilmember McCoy
AYES: Councilmembers Baker, Kegg, McCoy, and Middleton
NOES: -0-
ABSENT: Councilmember Davis
b. Title: Review of Yreka Municipal Code 1.24.170 Addressing the Council Manner of Addressing Council. Each person desiring to address the council shall step up to the microphone in front of the rail, state his name and address for the record, state the subject he wishes to discuss, state whom he is representing if he represents an organization or other persons, and, unless further time is granted by majority vote of the council, shall limit his remarks to five minutes. All remarks shall be addressed to the council as a whole and not to any member thereof. No question shall be asked a councilman or a member of the city staff without the permission of the presiding officer.

Recommended City Council Action: Direction to staff to bring back changes, if any, to YMC

1.24.170 Addressing the Council at a future City Council meeting for consideration.

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Public comment was heard from Daniel Simon, Lorenzo Love, and Dawnmarie Autrey.

City Manager Ledbetter summarized comments from the City Council (1) to retain the five-minute public comment, (2) to eliminate remote participation via Zoom for public comment, (3) to return to in person meeting for attendance by Council and Committee members, and (4) to update the code to gender neutral language. It is expected that revisions to the municipal code will be presented sometime after the first of the new year.

8. CITY MANAGER/STAFF REPORTS:

City Manager and Staff may make brief announcements or reports at this time.

City Manager Ledbetter brought forward information where SCORE, our insurance risk consortium for Councilmember training, dates available 12/6, 12/8, 12/14 and 12/18. Staff will be bringing forward the calendar for 2024 and advocating for the cancellation the January 2, 2024. City Manager Ledbetter attended the Continuum of Care, where he shared feedback at the last cleanup on Campus Drive, and logistics with the encampment site with major equipment. In communicating with our County partners for options for relocating the population, the response was to fence county property by the Behavioral Health within a week of that conversation. Once the no barriers shelter opens, there will be a focused effort on cleaning the encampment site. Councilmember gave City Manager Ledbetter direction to cancel the January 2, 2024, City Council meeting.

Chief Gilman gave an update on the SunRidge CADS (computer aided dispatching system), the department went live on the new software last week, and migration was successful.

9. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

Councilmember Baker attended on 10/24 the Collier Interpretive Information Center JPA meeting in Mt.

Shasta. Councilmember Baker attended the Finance Committee meeting held on 11/1. Councilmember Baker brought forward how to have ongoing discussions for legislative updates, quarterly or biannually, with our legislative representatives, like Megan Dahle. Councilmember Baker has received inquiries on the Proposition 218 processes for the proposed rate increase.

Councilmember Kegg is receiving concern from residents on the utility rate increase. Councilmember Kegg also attended the Continuum of Care meeting on November 1, and expressed his disappointment with County on their collaboration with relocating temporarily the unhoused living on the hill beside Behavioral Health.

Mayor Pro Tempore McCoy thanked the First 5 Siskiyou Children and Families Commission and for the 16th Annual Read Across Siskiyou event. Mayor Pro Tempore McCoy thanked Yreka Police and Public Works for managing the parade routes, with coordination and last-minute route changes. Mayor Pro Tempore McCoy supported Councilmember Baker’s request for legislative information. Mayor Pro Tempore McCoy requested information and statistics on code enforcement activities.

City Attorney Andrew Jared outlined and clarified the 218 processes for November 21, 2023, scheduled utility rate hearing.

Page 4 of 5 ends

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Mayor Middleton thanked Councilmember Baker for the Collier Interpretive Center meeting. Mayor Middleton requested updates on code enforcement activities. Mayor Middleton is sitting on a panel at the Yreka Library on November 18, 2023, United Against Hate week discussion.

10. ADJOURNMENT:

The meeting was adjourned at 9:37PM
-----------------------------------
Corey Middleton, Mayor
Minutes approved by City Council,
Motion on November 21, 2023
-------------------------------
Cyndy Prohaska, City Clerk
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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
Prepared by: Emily Aldrich, Finance Director
Agenda title: Public Hearing and Introduction of Ordinance Regarding Proposed Water and Wastewater Utility Rate Increase
Meeting date: November 21, 2023
Recommendation and Requested Action:
(i) Open Public Hearing, hear public comments, and close public hearing; (ii) Determine whether majority protest of the Proposed Water and Wastewater Rate Increase exists; and
(iii) Motion to accept the first reading of Proposed Ordinance No. 876 and pass the ordinance to the next Council meeting for a second reading and for adoption.

Discussion:

The City engaged PACE engineering to review the City’s utility rates. The rate review was conducted to determine if the current rate structures can provide the revenues needed to allow the City to recover the total costs of Water and Wastewater Enterprises from existing and future customers. (See Ex. A to Proposed Ordinance No. 876). Costs that were reviewed included the costs of operation and maintenance (O&M), debt service, normal additions and replacements to the systems, administrative costs, and capital outlay.

The scope of the study includes a review and analysis of the operation of the City’s Water and Wastewater Enterprises based upon historic expenditures and revenues, the proposed system’s Capital Improvement Plans (CIP), and projected future revenue requirements.

The Finance Committee met with Paul Reuter, PACE Engineering at the posted June 13, 2023, 10:00 AM meeting to discuss the preliminary results from the City’s water and wastewater utility rate study.

On September 5, 2023, Paul Reuter with PACE Engineering presented the City of Yreka’s 2023 Water and Wastewater Utility Rate Study to the City Council. The study evaluates the systems’ cost-of-service. Staff members were given direction at that meeting from the City Council initiate the rate increase process.

On October 3, 2023, the City Council adopted Resolution 2023-46 “Approving the Guidelines for the submission and tabulation of protests in connection with rate hearings conducted pursuant to Article XIIID, Section 6 of the California Constitution”. (Attachment 2). And on October 4, 2023, a public notice was mailed to all utility customers with their utility bill that included both property owners and tenants advising of the scheduled public hearing this evening, and the proposed rate increase.

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The public hearing notice with proposed rates has been published in the Siskiyou Daily News on Wednesday November 1, 8, and 15, 2023.

This evening the Council is considering the public hearing, tabulating protests submitted by rate payers and upon determining there was no majority, consideration of the first reading of [Proposed] Ordinance No. 876 and pass the ordinance to the next Council meeting for a second reading and for adoption.

Fiscal Impact:

Detailed analysis of the cost of providing services and fiscal impact are contained within the water and wastewater study. The rates increase will result an estimated 9.6% increase in water and 9.5% wastewater fee revenue over the next five years.

Attachments:

1. [Proposed] Ordinance No. 876

2. Resolution 2023-46 Guidelines for Submission and Tabulation of Protests

3. Pace Rate Study
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1 2
3 ORDINANCE NO. 876
4 5 AN UNCODIFIED ORDINANCE OF THE CITY
6 COUNCIL OF THE CITY OF YREKA, CALIFORNIA
7 DETERMINING THAT THERE WAS NO MAJORITY
8 PROTEST OF THE PROPOSED WATER AND
9 WASTEWATER RATE INCREASE AND ADOPTING
10 UPDATED WATER AND WASTEWATER SERVICE
11 RATES AND SUPERSEDING THE EXISTING RATES
12 ESTABLISHED BY RESOLUTION NO. 2018-27AND
13 FINDING THE ORDINANCE EXEMPT FROM CEQA
14 15 RECITALS
16 WHEREAS, the City of Yreka (“City”) operates and maintains potable water 17 and wastewater systems for the benefit of residents and businesses in the City, 18 and also for certain customers outside the boundaries of the City; and 19 WHEREAS, the City water and wastewater systems are operated as self20 supporting utility enterprises; and 21 WHEREAS, revenue from water and wastewater services rates and other 22 sources fund the ongoing operating and capital needs of City water and 23 wastewater systems, including providing for normal facility operations, 24 replacement and repair of equipment, improvements required to meet state 25 and federal regulatory requirements, inflation and other costs; and 26 WHEREAS, the water services rates currently applied to City customers were 27 last updated by Resolution No. 2018-27 adopted by City Council on June 21, 28 2018; and
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29 WHEREAS, the wastewater rates currently applied to City customers were 30 last updated by Resolution No. 2018-27 adopted by City Council on June 21, 31 2018; and
32 WHEREAS, the City contracts with PACE Engineering (“PACE”), as City 33 Engineers and a task order was initiated by staff to update the City’s water 34 and wastewater financial plans and to recommend rates based on the financial 35 plans; and
36 WHEREAS, PACE has prepared a report dated September 2023 entitled 37 “Water and Wastewater Utility Rate Study for the City of Yreka” (“Report”); 38 and
39 WHEREAS, the Report presents a five-year financial plan for each utility that 40 reflects the City’s FY 2023-24 budget and financial conditions as of the 41 beginning of the current fiscal year, as well as obtaining funds to meet the 42 City’s debt service obligations and capital improvement projects to maintain 43 service with existing service areas during the five-year planning period 44 extending through FY 2027-28; and
45 WHEREAS, recommendations in the Report concerning water services rates 46 include applying a 9.6 percent overall annual rate increase in the first part of 47 each of the next five fiscal years, and charging certain fixed monthly charges 48 regardless of the amount of water actually used; and 49 WHEREAS, recommendations in the Report concerning wastewater services 50 rates include applying a 9.5 percent overall annual rate increase in the first 51 part of each of the next five fiscal years and charging a certain monthly usage 52 rate for non-residential household equivalents that are based on 90% of winter 53 water consumption or available flow factors for similar type of discharges; 54 and
55 WHEREAS, the Report demonstrates that the recommended rates do not 56 exceed the reasonable cost of providing water and wastewater services and, as 57 such, the proposed rates are not levied for general revenue purposes; and Yreka City Council Meeting November 21, 2023 29 of 99
58 WHEREAS, the proposed rates reflect the cost of providing service to all 59 customers and customer classes through the apportionment of costs based on 60 customer, capacity, and demand characteristics; and
61 WHEREAS, on October 3, 2023, PACE representatives and the Finance 62 Director presented the Report to the City Council and members of the public 63 at a public meeting, and having heard the presentation and comments 64 regarding the Report, the City Council accepted the Report and the 65 recommendations contained therein; and
66 WHEREAS, in accordance with Government Code Section 50076, fees that 67 do not exceed the reasonable cost of providing the service or regulatory 68 activity for which the fees are charged and which are not levied for general 69 revenue purposes are not special taxes; and
70 WHEREAS, at least forty-five days in advance of the public hearing at which 71 this Ordinance was considered, notice of the public hearing, and notice of oral 72 and written protest procedures against the proposed rates increases, were 73 mailed to all property owners and customers in compliance with California 74 Constitution Article XIII D, Section 6; and
75 WHEREAS, notice of the public hearing was also published in a local 76 newspaper in accordance with applicable laws; and
77 WHEREAS, at the conclusion of the public hearing, the City Clerk tabulated 78 the number of written protests received and reported that there was not a 79 majority protest of the proposed water services rate increase or of the 80 proposed wastewater services rate increase by customers, owners or 81 authorized representatives of identified parcels receiving such services. 82 FINDINGS
83 WHEREAS, based on the information presented, including the staff report 84 and comments made by members of the public, the City Council of the City of 85 Yreka finds as follows:

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86 A. The purposes of the updated water and wastewater services rates 87 established pursuant to this Ordinance are to (1) recover the reasonable 88 estimated cost of the services for which the rates are charged; (2) provide that 89 such costs are allocated among City customers so as to bear a fair and 90 reasonable relationship to customers’ burdens on and benefits from City water 91 and wastewater services; (3) secure the financial stability of the water and 92 wastewater systems; (4) ensure high quality services; and (5) provide a sound 93 financial plan that meets existing debt service obligations, which will assist in 94 funding capital improvement projects.
95 B. The updated water and wastewater services rates established pursuant to 96 this ordinance are not levied for general revenue purposes. 97 C. The rates set forth in this Ordinance are intended to meet operating 98 expenses, meet financial reserve needs and requirements, secure funding for 99 capital improvement projects to maintain service within existing service areas, 100 and recover costs necessary to maintain the current level of City water and 101 wastewater services. As such, adoption of the rates proposed in the Report, as 102 they relate to provision of water and wastewater services to City customers, is 103 not a “project” within the meaning of the California Environmental Quality 104 Act or C.E.Q.A. (Public Resources Code § 21080(b)(8)(A, C, and D)). 105 D. In adopting the rates set forth in this Ordinance, the City Council of the 106 City of Yreka is exercising its powers under Article XI, Section 7 of the 107 California Constitution.
108 E. The record of proceedings (“Record”) establishes that the costs listed in 109 the Report as those incurred by the City in providing water and wastewater 110 services to City customers are reasonable estimates of the cost of providing 111 such services, and that the revisions recommended in the Report for existing 112 water and wastewater service rates are necessary to recover the reasonable, 113 estimated cost of providing such services for which the rates are charged, to 114 allocate such costs among City customers so that they bear a fair and 115 reasonable relationship to customers, and to secure the financial stability of 116 City water and wastewater systems in accordance with the analyses contained 117 in the Report.

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118 F. The procedures followed and the rates adopted are in compliance with 119 California Constitution Article XIII D.
120 G. There is not a protest of the proposed water services rate increases or of 121 the proposed wastewater services rate increases by a majority of customers, 122 owners, or authorized representatives, of identified parcels receiving such 123 services.
124 THE CITY COUNCIL OF THE CITY OF YREKA DOES HEREBY
125 ORDAIN AS FOLLOWS:
126 Section 1. Definitions.
127 a. “City Customer’ shall mean any person, corporation, or other entity that 128 receives City water and/or wastewater services, regardless of whether City 129 water and/or wastewater services are provided to property within the City, or 130 property outside the boundaries of the City.
131 b. “Rates” shall mean the charge or charges imposed on City Customers to 132 recover the costs incurred by the City in providing water and wastewater 133 services.
134 Section 2. Water and Wastewater Services Rates Imposed. The Rates set forth 135 in Exhibit “A”, attached, are hereby approved and adopted and said Rates 136 shall supersede and replace the rates set forth in City Council Resolution No. 137 2018-27. Rates shall apply to and be paid by City Customers at the times, and 138 in the amounts, and otherwise apply and be administered as prescribed in this 139 Ordinance, said Rates to become effective with the service period also known 140 as the billing cycle ending March 20th of each calendar year, through and 141 including December 31, 2028.
142 Section 3. Time for Payment of Rates. City Customers shall pay the Rates as 143 prescribed in bills issued to City Customers in accordance with Section 144 12.04.410 and 12.13.140 of the City’s Municipal Code, subject to all 145 applicable regulations, requirements and penalties for non-compliance 146 pursuant to the Municipal Code and other applicable law.

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147 Section 4. Rate Amounts. The Rate amounts applicable to water shall be as 148 specified in the rate schedule attached as Exhibit A to this Ordinance, which 149 schedule is hereby incorporated into this Ordinance. The Rate amounts 150 applicable to wastewater services shall be as specified in the rate schedule 151 attached as Exhibit A to this Ordinance, which schedule is hereby 152 incorporated into this Ordinance.
153 Section 5. User of Rate Revenue. The revenues raised by payment of the 154 Rates shall be used to fund the estimated reasonable cost of providing the 155 services for which the Rates are charged, and the Rate revenues shall not be 156 used for general revenues purposes.
157 Section 6. Subsequent Analysis and Revision of the Rates. The Rates set 158 herein are adopted and implemented by the City Council in reliance on the 159 Record identified above. The City may continue to conduct further study and 160 analyses to determine whether the Rates should be revised. When additional 161 information is available, the City Council may review the rates to determine 162 that the Rate amounts do not exceed the estimated reasonable cost of 163 providing the services for which the Rates are charged. 164 Section 7. Effective Date. This Ordinance will become effective sixty-one 165 days following its adoption.
166 Section 8. Implementation. The City Council hereby authorizes and directs 167 the City Manager to take any action and sign any documents necessary to 168 implement this Ordinance.
169 Section 9. CEQA Exemption. The Council finds that this Ordinance calling a 170 mail ballot election does not meet the definition of a project for the purposes 171 of the California Environmental Quality Act, under Public Resources Code 172 Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an 173 administrative governmental activity which will not cause a direct or indirect 174 physical change in the environment. The City Council’s review and adoption 175 of changing the water and wastewater rates is not a project under CEQA 176 Guidelines mechanisms which do not involve commitment to any specific Yreka City Council Meeting November 21, 2023 33 of 99
177 project which may result in a potentially significant environmental impact. 178 Thus, no environmental analysis is required at this time. 179 Section 10. Execution. The Mayor and City Clerk are authorized to subscribe 180 this Uncodified Ordinance where indicated below to evidence its approval by 181 the City Council.
182
183 Introduced at a regular meeting of the City Council held on November 184 21, 2023, passed, approved by at least a majority and adopted at a regular 185 meeting of the City Council of the City of Yreka held on December 5, 2023, 186 by the following vote:
187
188 AYES:
189 NOES:
190 ABSTAIN:
191 ABSENT:
192
193 Corey Middleton, Mayor
194 Approved as to Form: Attest:
195
196 Andrew Jared, City Attorney Cyndy Prohaska, City Clerk 197
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198 Attachment A
199
200
201 Water Rates
202
203
204
205 Wastewater Rates
206
207
208
209 Source: City of Yreka, 2023 Water and Wastewater Utility Rate Study Yreka City Council Meeting November 21, 2023 35 of 99
210
Yreka City Council Meeting November 21, 2023 36 of 99

CITY OF YREKA
To: Yreka City Council
Prepared by: Emily Aldrich, Finance Director
Agenda title: Approving Guidelines for the Submission and Tabulation of Protests in Connection with Rate Hearings Conducted Pursuant to Article XIIID, Section 6 of the California Constitution and Finding the Resolution Exempt from CEQA
Meeting date: October 3, 2023
Recommendation:

Motion to Adopt Resolution 2023-46 of the City Council of the City of Yreka Approving Guidelines for the Submission and Tabulation of Protests in Connection with Rate Hearings Conducted Pursuant to Article XIIID, Section 6 of the California Constitution and Finding the Resolution Exempt from CEQA Discussion:

At the September 5, 2023, City Council meeting, Paul Reuter with PACE Engineering presented the City of Yreka’s 2023 Water and Wastewater Utility Rate Study. The study evaluates the systems’ cost-of-service.

Staff was given direction to move forward with said study. This evening before you is the final study as presented on September 5, 2023, and the resolution requesting adoption of the protest voting procedures. The public hearing for the water and wastewater utility rate adoption is scheduled for Tuesday, November 21, 2023 at 6:30PM, 701 Fourth Street, Yreka.

Pursuant to California Constitution article XIII D, Section 6 (approved by the voters by Proposition 218), prior to imposing a new or increasing an existing property-related fee such as water and wastewater rates, the City is required to hold a public hearing and mail notice of the public hearing to the record owner of the property and any tenant who is directly liable for the payment of the proposed fees (i.e., a customer of record).

Proposition 218 requires that the notice include the following: (a) the amount of the fee or charge proposed to be imposed; (b) the basis upon which it was calculated; (c) the reason for the fee or charge; and (d) the date, time, and location of the public hearing. Consistent with these requirements, the attached Proposition 218 Notice presents the proposed modifications to the Water and Wastewater Fee structure and provides examples of the impact to typical users within the various customer classes, along with a summary explanation of the reason for the proposed rate structure changes and increases, and the basis upon which the rates were calculated. The notices must be mailed at least 45 days in advance of the Public Hearing to consider modifications to the rates.

The resolution presented for adoption this evening sets forth the guidelines for submission and tabulation of such protests.

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RESOLUTION NO. 2023-46

A RESOLUTION OF THE CITY OF YREKA APPROVING GUIDELINES FOR

THE SUBMISSION AND TABULATION OF PROTESTS

IN CONNECTION WITH RATE HEARINGS CONDUCTED PURSUANT TO
ARTICLE XIIID, SECTION 6 OF THE CALIFORNIA CONSTITUTION AND

FINDING THE RESOLUTION EXEMPT FROM CEQA
BE IT RESOLVED, by the City Council of the City of Yreka, California as follows:

WHEREAS, Article XIIID, Section 6 of the California Constitution requires the City Council to consider written protests to certain proposed increases to utility charges and/or imposes new property related utility charges; and
WHEREAS, this constitutional provision does not offer specific guidance as to who may submit protests, how written protests are to be submitted, or how the City is to tabulate protests.

WHEREAS, upon adoption of this resolution, any and all resolutions, or rules or regulations of this City in conflict with it, shall be repealed and shall have no further force or effect. This resolution supersedes all prior resolutions of the City to the extent that such resolutions established guidelines for the submission and tabulation of protests in connection with rate hearings conducted by the City pursuant to Article XIIID, Section 6 of the California Constitution.

IT IS, THEREFORE, RESOLVED by the City Council of the City of Yreka that when notice of a public hearing with respect to the adoption or increase of Water, Wastewater or Stormwater charges has been given by the City pursuant to Article XIIID, Section 6(a) of the California Constitution, the following shall apply:

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SECTION 1: Definitions.

Unless the context plainly indicates another meaning was intended, the following definitions shall apply in construction of these guidelines.

A. “Parcel” means a County Assessor’s parcel the owner or occupant of which is subject to the proposed charge that is the subject of the hearing.

B. “Record customer” and “customer of record” mean the person or persons whose name or names appear on the City records as the person who has contracted for, or is obligated to pay for, utility services to a particular utility account.

C. “Record owner” or “parcel owner” means the person or persons whose name or names appear on the County Assessor’s latest equalized assessment roll as the owner of a parcel.

D. A “fee protest proceeding” is not an election, but the City Clerk will maintain the confidentiality of protests as provided below and will maintain the security and integrity of protests at all times.

SECTION 2: Notice Delivery.

Notice of proposed rates and public hearing shall be as follows:

A. The City shall give notice of proposed charges via U.S. mail to all record owners and customers of record served by the City.

B. The City will post the notice of proposed charges and public hearing at its official posting sites.

SECTION 3: Protest Submittal.

A. Any record owner or customer of record who is subject to the proposed utility charge that is the subject of the hearing may submit a written protest to the City Clerk, by:

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(i) Delivery to the City Clerk’s Office at 701 Fourth Street, Yreka, California during published business hours
(ii) Mail to City Clerk at 701 Fourth Street, Yreka, California 96097 or (iii) Personally submitting the protest at the public hearing.

B. Protests must be received by the end of the public hearing, including those mailed to the City. No postmarks will be accepted; therefore, any protest not physically received by the close of the hearing, whether or not mailed prior to the hearing, shall not be counted.

C. Because an original signature is required, emailed, faxed and photocopied protests shall not be counted.

D. Although oral comments at the public hearing will not qualify as a formal protest, unless accompanied by a written protest, the City Council; welcomes input from the community during the public hearing on the proposed charges.

SECTION 4: Protest Requirements.

A. A written protest must include:
(i) A statement that it is a protest against the proposed charge that is the subject of the hearing.
(ii) Name of the record owner or customer of record who is submitting the protest;
(iii) Identification of assessor’s parcel number, street address, or utility account number of the parcel with respect to which the protest is made; (iv) Original signature and legibly printed name of the record owner or customer of record who is submitting the protest.

B. Protests shall not be counted if any of the required elements (i through iv) outlined in the preceding subsection “A.” are omitted.

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SECTION 5: Protest Withdrawal.

Any person who submits a protest may withdraw it by submitting to the City Clerk a written request that the protest be withdrawn. The withdrawal of a protest shall contain sufficient information to identify the affected parcel and the name of the record owner or customer of record who submitted both the protest and the request that it be withdrawn.

SECTION 6: Multiple Record Owners or Customers of Record.

A. Each record owner or customer of record of a parcel served by the City may submit a protest. This includes instances where:
(i) A parcel is owned by more than one record owner or more than one name appears on the City’s records as the customer of record for a parcel, or
(ii) A customer of record is not the record owner, or
(iii) A parcel includes more than one record customer, or (iv) Multiple parcels are served via a single utility account, as mastermetered multiple family residential units.

B. Only one protest will be counted per parcel as provided by Government Code Section 53755(b).

SECTION 7: Transparency, Confidentiality, and Disclosure.

A. To ensure transparency and accountability in the fee protest tabulation while protecting the privacy rights of record owners and customers of record, protests will be maintained in confidence until tabulation begins following the public hearing.

C. Once a protest is opened during the tabulation, it becomes a disclosable public record, as required by state law and will be maintained in City files for two years.

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SECTION 8: City Clerk.

The City Clerk shall not accept as valid any protest if he or she determines that any of the following is true:

A. The protest does not state its opposition to the proposed charges.

B. The protest does not name the record owner or record customer of the parcel identified in the protest as of the date of the public hearing.

C. The protest does not identify a parcel served by the City that is subject to the proposed charge.

D. The protest does not bear an original signature of the named record owner of, or record customer with respect to, the parcel identified on the protest. Whether a signature is valid shall be entrusted to the reasonable judgment of the City Clerk, who may consult signatures on file with the County Elections Official.

E. The protest was altered in a way that raises a fair question as to whether the protest actually expresses the intent of a record owner or a customer of record to protest the charges.

F. The protest was not received by the City Clerk before the close of the public hearing on the proposed charges.

G. A request to withdraw the protest was received prior to the close of the public hearing on the proposed charges.

SECTION 9: City Clerk’s Decisions Final.

The City Clerk’s decision that a protest is not valid shall constitute a final action of the City and shall not be subject to any internal appeal.

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SECTION 10: Majority Protest.

A. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners of, or customers of record with respect to, a majority (50% plus one) of the parcels subject to the proposed charge.

B. While the City may inform the public of the number of parcels served by the City when a notice of proposed rates is mailed, the number of parcels with active customer accounts served by the City on the date of the hearing shall control in determining whether a majority protest exists.

SECTION 11: Tabulation of Protests.

At the conclusion of the public hearing, the City Clerk shall tabulate all protests received, including those received during the public hearing, and shall report the result to the City Council. If the number of protests received is insufficient to constitute a majority protest, the City Clerk may determine the absence of a majority protest without validating the protests received, but may instead deem them all valid without further examination.

Further, if the number of protests received is obviously substantially fewer than the number required to constitute a majority protest, the City Clerk may determine the absence of a majority protest without opening the envelopes in which protests are returned.

SECTION 12: Report of Tabulation.

If at the conclusion of the public hearing, the City Clerk determines that he or she will require additional time to tabulate the protests, he or she shall so advise the City Council, which may adjourn the meeting to allow the tabulation to be completed on another day or days. If so, the City Council shall declare the time and place of tabulation, which shall be conducted in a place where interested members of the public may observe the tabulation, and the City Council shall declare the time at which the meeting shall be resumed to receive and act on the tabulation report of the City Clerk.

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SECTION 13: This resolution will become effective immediately upon adoption.

SECTION 14: CEQA Exemption.

The Council finds that this resolution approving guidelines for the submission and tabulation of protests in connection with rate hearings does not meet the definition of a project for the purposes of the California Environmental Quality Act, under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. The City Council’s review and adoption of water and wastewater utility rates is not a project under CEQA Guidelines mechanisms which do not involve commitment to any specific project which may result in a potentially significant environmental impact. Thus, no environmental analysis is required at this time.

PASSED AND ADOPTED by the City Council of the City of Yreka at a regular meeting held on the 3rd day October, 2023.

AYES:

NAYS:

ABSENT:

RECUSED:

Corey Middleton, Mayor
Attest:

Rhetta Hogan,
City Clerk
Yreka City Council Meeting November 21, 2023 44 of 99
PROPOSED CITY WATER & WASTEWATER RATES FOR:

CALENDAR YEARS 2024, 2025, 2026, 2027, AND 2028
You are receiving this Notice because our records indicate that you are a City of Yreka utility customer.

If you are not a City water or wastewater customer, please disregard this Notice.

This Notice describes proposed changes to water and wastewater rates and explains how you can participate in the process. The proposed changes to the present water and wastewater utility rates are based upon a comprehensive rate study that uses a rate model to evaluate the cost of water and wastewater service, as required by California Proposition 218. You can review the “2023 Water and Wastewater Utility Rate Study for the City of Yreka” dated September 2023 by asking to look at it at City Hall located at 701 Fourth Street, Yreka, CA or from any location via an internet web browser at the following location: http://ci.yreka.ca.us/public‐review‐documents. Any rate adjustment made will be applicable to all those who receive City Water and/or City Wastewater services.

Why are the water rates changing?
Adjustments to water and wastewater rates are necessary to generate the appropriate amount of revenue and maintain the appropriate reserves required to operate the utilities and to comply with the City’s contractual obligations to obtain loans which have funded water and wastewater system maintenance, improvements, and repairs.

How will the proposed changes impact my utility bills?
It is proposed that rates will be automatically adjusted upward by 9.6% annually for water and 9.5% annually for wastewater starting February 21, 2024 through December 31, 2028 calendar year.

To calculate the exact impact of these adjustments on your water bill see Table 1. The majority of residents who receive water from the City are connected to the system with a 5/8‐inch connection.

To calculate the exact impact of these adjustments on your wastewater bill see Table 2.

How do I participate?
All utility customers and interested persons are invited to attend the public hearing and be heard or to write the City at: City of Yreka, Attn: City Clerk, 701 Fourth Street, Yreka, CA 96097 with timely delivery through the mail or personally deliver it. All comments must be received (not postmarked) by the close of the public hearing. Any protests to the rate adjustments must be submitted to the City in accordance with the form and informational requirements adopted by the City. Your comments are public records. If a majority of customers protest, the rate adjustments will not be made.

NOTICE OF PUBLIC HEARING

PROPOSED CHANGES TO CITY OF YREKA

WATER AND WASTEWATER RATES
FOR CALENDAR YEARS 2024 –2028
Date: Tuesday, November 21, 2023, 6:30 p.m.

Place: City of Yreka Council Chambers, City Hall
701 Fourth Street, Yreka, California
Yreka City Council Meeting November 21, 2023 45 of 99
Effective January 21, 2024
City of Yreka – Water Utility
Rate Schedule
Yreka City Council Meeting November 21, 2023 46 of 99

NOTICE OF PUBLIC HEARING
and Proposed Ordinance Modifying Water and Wastewater Rates and Adopting the Ordinance Exempt From CEQA
Notice is hereby given that the Yreka City Council will hold a public hearing at its regular meeting to consider an ordinance changing the rates charged for water and wastewater services. All interested persons are invited to attend the meeting, including all persons owning property within the City of Yreka or those who are receiving utility services outside the city, to appear and be heard as to: 1) Your opinion about the ordinance generally; 2) Whether the proposed change in water and wastewater rates and any other charges are discriminatory or excessive or will not comply with other provisions of California law including Proposition 218, or will not comply with any other provisions or covenants of any outstanding revenue bonds of the local agency payable from revenues of the enterprise, or on any other matter relating to said proposed ordinance of the rates or charges proposed therein, at the following time and place:

TIME OF HEARING: 6:30 p.m.

DATE OF HEARING: Tuesday, November 21, 2023
PLACE OF HEARING: Council Chambers at 701 Fourth Street, Yreka, California
The City of Yreka last performed a rate study five years ago and has recently adopted a new rate study for the next five years. Water rates generate revenues needed to operate the water system and provide the funds needed to invest in necessary improvements, replacements, and repairs, while the wastewater rates generate revenue to operate the sewer system and the processing of wastewater into a form it can subsequently discharge and provide the funds needed to invest in necessary improvements, replacements, and repairs. The proposed rate increases are needed in order to fund these costs, which increase over time due to inflation and other economic factors that affect the cost of providing service.

The City Council will take written and oral comments that evening and will receive a final written tabulation of all complying written protests received by the City Clerk. If the City receives written protests against the proposed rates by a majority of affected property owners or ratepayers, the City may not impose the rates. If written protests are not submitted by a majority of affected property owners and ratepayers, then the City Council is authorized to implement the rate increases. Only one protest per parcel will be counted. If approved, the rate increases will take effect with the service-period at least 61 days following the adoption of the new rates, estimated to be February 20, 2024. The City Council will be considering at the above stated public hearing whether to adopt the ordinance setting those utility system rates and charges. The utility rate charges are based on a five-year financial plan and a rate study that is available online for your review https://ci.yreka.ca.us/276/Public-Review-Documents .

If a ratepayer desires to challenge the determination of the Yreka City Council in court they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Yreka at the meeting or to 701 Fourth Street, Yreka, CA 96097 prior to the close of the public hearing at the meeting.

Any legal action contesting this ordinance, if passed, must be challenged within the 120-day statute of limitations specified by Government Code § 53759.

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Estimated Effective Date - February 21, 2024
City of Yreka – Water Utility
Rate Schedule
Yreka City Council Meeting November 21, 2023 48 of 99
5155 VENTURE PARKWAY • REDDING, CA 96002 • (530) 244-0202 September 8, 2023

69.66 SENT BY EMAIL ONLY
[email protected]
Emily Aldrich
Finance Director
City of Yreka
Dear Emily,
Subject: 2023 Water and Wastewater Utility Rate Study Update – Final The City of Yreka’s (City’s) previous water and wastewater utility rate study was completed in late 2018, and the City adopted planned rate increases of 4.0% per year for both Water and Wastewater Enterprise Funds. The prior 2013 Utility Rate Study recommended utility rates that were not adopted by the City Council. By not adopting the 2013 utility rate increases, the City has been playing a bit of “catch up” in its utility enterprise funds since then.

The 2018 Utility Rate Study projected revenue requirements for both the Water and Wastewater Enterprise Funds to increase about 4.0% per year from 2019 through 2023. Actual inflation on expenditures over this period was about 9.3% per year for the water utility and about 8.4% per year for the wastewater utility.

This 2023 Utility Rate Study Update process involved five workshops, which began in February and ended in August 2023, where the City’s financial performance and goals were evaluated and discussed with City Staff and the ad hoc committee of the City Council.

The remainder of this letter summarizes our evaluation of the Water and Wastewater Utility Enterprise Funds and provides recommendations for both utility enterprises. This letter is intended to be an update to the 2018 Water and Wastewater Utility Rate Study and provides updated financial information, cost-of-service analysis, and proposed five-year utility rates.

WATER UTILITY
The City’s actual Fiscal Year (FY) 22-23 and budgeted FY23-24 expenditures were used as a basis for developing a cost-of-service analysis and revenue needs projections for FY24-25 through FY27-28. For predicting future revenue needs, the following considerations have the most significant impact on these projections:

Inflation on Expenditures: Our country has experienced increased inflation over the last two to three years. Consumer Price Index (CPI) inflation has averaged about 4.2% per year over this period. The Municipal Cost Index (MCI) inflation has averaged about 5.2% over the last few Yreka City Council Meeting November 21, 2023 49 of 99
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years. The MCI is a better indicator of inflationary impacts experienced by the City for enterprise fund expenditures because it tracks expenses typically incurred by public agencies, while CPI tracks expenses for consumer goods. Actual inflation on expenditures in the City’s water utility between 2019 and 2023 was approximately 9.3% per year.

When considering inflation for public works construction projects, the City utilizes the Engineering News Record (ENR) Construction Cost Index (CCI) for San Francisco, which has averaged about 5.9% over the last few years. In reality, we have seen much higher inflationary impacts on public works construction projects due to (1) demand for work, (2) supply chain challenges for materials and equipment, and (3) payment delays from public funding agencies.

For the purpose of projecting future expenditure costs for the City’s Water and Wastewater Enterprise Funds, we have assumed the following:
• Chemicals: 5.0% per year
• Employee Benefits: 5.0% per year
• Wages: 4.0% per year
• Planned Labor Resources: 3.5% per year
• General Expenses: 3.0% per year
These inflationary projections are lower than what we have seen recently; however, based on the City’s past ability to reasonably control expenditures, it is believed these projections can be adhered to over the next five years.

Capital Improvements: The City has been very successful in recent years with obtaining sizable grants to replace aged infrastructure and to make improvements to its water infrastructure.

Below are some recent capital project successes, all of which are 100% grant funded:

1. East Lennox Pipeline and Filter Replacement Project: This project is nearing completion and involved replacing the existing pipeline across Interstate 5 with a larger pipeline to deliver greater hydraulic capacity and fire protection to the north Yreka area. It also replaces six filters at the City’s Water Treatment Plant (WTP). The total grant allocation for this project was $5.17M.

2. Highway 3 Water System Improvements: Caltrans has begun a significant improvement project along the Highway 3/Main Street corridor through Yreka. This corridor contains water pipelines and infrastructure that are among the oldest in the city. Caltrans informed the City that it would not allow major infrastructure replacement within the project area after the work is completed. The City was able to secure a $3.5M grant from the Community Development Block Grant (CDBG) program to replace the water infrastructure between Oberlin Road and Montague Road during summer 2022. These improvements eliminated multiple old parallel steel pipelines and improved hydraulic capacity, including fire flows along the entire corridor. The City will also be receiving a $1.124M reimbursement from Caltrans to cover costs to relocate water infrastructure that conflicted with Caltrans’ proposed improvements along the Main Street/Highway 3 corridor.

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3. Water Supply and Storage Improvements: The City acquired a $5.22M grant from California Drinking Water State Revolving Fund (DWSRF) to (1) relocate and replace the Shasta Belle Tank, including upgrading the Outsen Booster Pump Station, (2) construct a new Lower Humbug Tank, and (3) add infrastructure to Davis Well to render it a viable back-up water supply for the City. The design of these improvements is nearly complete, and construction is expected to begin in 2024.

The City continues to aggressively pursue additional grant opportunities. Described below are two major projects the City is seeking 100% grant dollars to implement. It is worth noting that for every one million dollars of grant money secured for capital improvements, it saves City rate payers approximately $1.00 per month on their water bill.

1. South Yreka Water Supply and Distribution Improvements: This project consists of adding water treatment facilities to Greenhorn Reservoir to take advantage of the City’s long-time winter water right to help augment the City’s Fall Creek water supply. In addition, the project includes installing approximately seven miles of new water mains and potential consolidation with the Shasta View Heights Subdivision and intertie with Rolling Hills Mutual Water Company. The total estimated project cost is about $37.1M.

2. Water Main Replacement Project: The City is pursing DWSRF planning grant dollars to complete planning and design of a $21.4M project that would replace approximately

5.75 miles of old steel water lines throughout the City that have a history of substantial leaks.

Even with the City’s recent success with obtaining grants and their ongoing efforts to acquire more, there are still substantial water system improvements needed to replace aged infrastructure and to correct existing deficiencies. The City’s decision to self-fund, seek outside loans, or pursue grants impacts revenue needs going forward. The following non-grant-funded capital improvements have been identified as near-term needs within the Water Enterprise Fund:
• Ongoing Steel Water Main Replacements: $500,000
• Water Meter Head Upgrade: $634,500
• Fall Creek Pipeline Assessment: $500,000
• Cathodic Protection Survey: $40,000
• Fall Creek Master Meter Replacement: $150,000
• Upgrade SCADA Services: $55,000
• Water Master Plan Update: $22,000
• Watershed Protection/Land Acquisition: $1,500,000
• City Hall Upgrade: $750,000
• Alternative Water Supply: $2,000,000
If the City were to self-fund all projects listed above, i.e., use revenue derived from water rates to fund the improvements, the required water rate increase would be about 15% per year for five years. To keep water rates down to a more manageable level, the City has elected to delay and/or seek other funding sources to complete the projects highlighted in yellow, which Yreka City Council Meeting November 21, 2023 51 of 99
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represent about $3.13M worth of work. As such, the recommended total amount of self-funded capital improvements over the next five years is expected to be about $3.02M, not including the grant-funded projects described hereinbefore.

Table 1 shows a summary of budgeted and projected expenditures for each major Water Enterprise Fund department for FY23-24 through FY27-28. Also shown are anticipated capital projects for the two capital projects funds: Water Distribution and Water Supply and Treatment.

Inflationary projections are shown for each planned expenditure.

Short-Term Asset Replacement: Short-term assets are those assets that have useful lives of five to twenty years and includes items from computer equipment to large pumps and motors.

Funding agencies, such as USDA Rural Development, require borrowers to establish and fund such reserves to assure adequate funds exist to replace short-term assets over the life of a loan.

Even without mandates from funding agencies, it is considered prudent financial practice for public agencies to develop and fund short-term asset reserves to assure adequate cash flow exists for replacing short-term assets.

The Water Fund has three short-term asset reserves: (1) Water Distribution, (2) Water Supply and Treatment, and (3) Greenhorn Reservoir, shown on Tables 2, 3, and 4, respectively. Annual revenue needed to fund each reserve is shown at the bottom of each table.

Five-Year Financial Plan: Using the planned expenditures and capital improvements shown in Table 1, a five-year financial plan was developed. The financial plan summarizes revenue and expenditures and tracks balances in the various reserve accounts. Maintaining healthy reserve account balances is a key component for maintaining a healthy utility fund that remains in good standing with outside creditors. Table 5 shows the proposed Water Fund financial plan for FY23-24 through FY27-28. As shown, the Total Cash Available for Capital Improvements balance is expected to decline approximately $366,000 over the five-year study period, but the balance is expected to be about $3.392M at the end of five years.

Note, the debt-coverage-ratio (DCR) is shown at the bottom of Table 5 for each year of the financial plan. It is recommended the DCR be maintained at 1.2 or above to remain in good standing with current and future creditors. By FY25-26, the DCR is expected to be greater than 1.2.

Proposed Water Rates: Proposed utility rates go into effect on January 1 of each year. For example, planned water rates for FY23-24 would go into effect on January 1, 2024. Attached Table 6 shows proposed water rates for FY23-24 through FY27-28, which increase 9.6% per year.

Comparative FY22-23 water rates with other agencies are shown in Figure 1. Also shown is the proposed FY23-24 City of Yreka water rate compared to FY22-23 rates from other agencies.

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WASTEWATER UTILITY
Like the Water Enterprise Fund, the City’s actual FY22-23 and budgeted FY23-24 expenditures were used as a basis for developing a cost-of-service analysis and revenue needs projections for FY24-25 through FY27-28. Like the water utility, the following considerations have the most significant impact on future revenue projections:

Inflation on Expenditures: Inflationary trends for expenditures in the Wastewater Enterprise Fund tracked at about 8.4% per year between 2019 and 2023, which is slightly less than the Water Enterprise Fund.

For the purpose of projecting future expenditure costs for the City’s Wastewater Enterprise Fund, we used the same annual inflation percentages as were used for the Water Enterprise Fund described hereinbefore.

Capital Improvements: As with the water utility, the City has been very successful in recent years with obtaining sizable grants and/or loans to replace aged infrastructure and to make improvements to its wastewater infrastructure. Described below are some recent capital project successes:

1. Main Street Sewer Interceptor Improvements: Similar to the Main Street Water System Improvements, the City proceeded with a project ahead of the major Main Street/Highway 3 corridor improvements conducted by Caltrans to replace its aged wastewater collection infrastructure and consolidate multiple collection mains within the Main Street corridor.

This project was primarily funded through a low-interest 40-year loan from USDA Rural Development. The City also contributed about $500,000 of its own funds. The City is currently working with Caltrans on a reimbursement that compensates the City for wastewater infrastructure the City relocated to accommodate Caltrans’ improvements. The amount is expected to put about $1.658M back into the City’s Wastewater Enterprise Fund.

2. Wastewater Collection System Improvements Project: In 2016, the City obtained a $500,000 planning grant from Clean Water State Revolving Fund (CWSRF) to conduct planning and preliminary design of an extensive wastewater collection replacement project throughout the City. The City acquired final construction funding in April 2021 and began final design of the improvements. Construction began in June 2023, and the total grant allocation was $5.5M.

3. Wastewater Treatment Plant (WWTP) Improvement Project: The City is self-funding the planning, environmental, and preliminary design effort to make substantial improvements to the WWTP. This effort is ongoing, and it is expected that a final CWSRF construction funding application will be submitted to State Water Resources Control Board (SWRCB) Division of Financial Assistance (DFA) in the coming months. The City will be seeking 100% grant dollars for an expected $32M project.

4. Yreka Creek Sewer Improvement Project: The City is currently completing a CWSRF planning grant application seeking $1.522M in grant money to complete planning and design of several wastewater collection segments in and around Yreka Creek, between Yreka City Council Meeting November 21, 2023 53 of 99
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Oberlin Road and Montague Road. After the planning grant is obtained and the planning/design effort completed, the City will seek CWSRF construction grant funds to complete the $16.3M project. Construction of this project is still several years out.

While the City has been successful in obtaining grants, it continues to aggressively seek additional grant opportunities to make improvements to its wastewater infrastructure. Grant procurement reduces costs to system users through dampening of wastewater rates. Despite these efforts, the City has other capital project needs for which traditional public funding (grant) programs are not available. The following non-grant-funded capital improvements have been identified as near-term needs within the wastewater utility that are scheduled to occur over the next five years:
• WWTP Evaluation Study: $70,000
• Wastewater Master Plan Update: $22,000
• City Hall Upgrade: $750,000
• Yama Street Sewer Improvements, Phase 2: $459,000
• South Street Area Sewer Improvements: $1,115,000
• S. West Street Sewer Improvements: $1,636,000
• Aging Sewer Main Replacements (2026-2030): $1,000,000 If the City were to self-fund all projects listed above, i.e., use revenue derived from wastewater rates to fund the improvements, the required wastewater rate increase would be about 11% per year for five years. To keep wastewater rates down to a more manageable level, the City has elected to delay and/or seek other funding sources to complete the projects highlighted in yellow, which represent about $4.21M worth of work. As such, the recommended total amount of self-funded capital improvements over the next five years is expected to be about $842K, not including the grant-funded projects described hereinbefore.

Table 7 shows a summary of budgeted and projected expenditures for each major Wastewater Enterprise Fund department for FY23-24 through FY27-28. Also shown are anticipated capital projects for the two capital projects funds: Wastewater Collection and Wastewater Disposal.

Inflationary projections are shown for each planned expenditure.

Short-Term Asset Replacement: The Wastewater Fund has two short-term asset reserves:
(1) Wastewater Collection and (2) Wastewater Disposal, shown on Tables 8 and 9, respectively.

Annual revenue needed to fund each reserve is shown at the bottom of each table.

Five-Year Financial Plan: Using the planned expenditures and capital improvements shown in Table 7, a five-year financial plan was developed. The financial plan summarizes revenue and expenditures and tracks balances in the various reserve accounts. Maintaining healthy reserve account balances is a key component for maintaining a healthy utility fund that remains in good standing with outside creditors. Table 10 shows the proposed Wastewater Enterprise Fund financial plan for FY23-24 through FY27-28. As shown, the Total Cash Available for Capital Improvements balance is expected to increase over the five-year study period; however, it is still Yreka City Council Meeting November 21, 2023 54 of 99
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unclear as to the amount of grant dollars the City will receive from some of the sizable allocations it is seeking. Therefore, it is recommended the reserve projections be left alone.

If the City obtains all the grant dollars it expects, it may have surplus to complete some of the unfunded sewer replacement work (highlighted in yellow, above).

Note, the DCR is shown at the bottom of Table 10. By FY25-26, the DCR is expected to be greater than 1.2.

Proposed Water Rates: Proposed utility rates go into effect on January 1 of each year. For example, planned water rates for FY23-24 would go into effect on January 1, 2024. Attached Table 11 shows proposed wastewater rates for FY23-24 through FY27-28, which increase 9.5% per year.

Comparative FY22-23 wastewater rates with other agencies are shown in Figure 2. Also shown is the proposed FY23-24 City of Yreka wastewater rate compared to FY22-23 rates from other agencies.

Sincerely,
Paul J. Reuter, P.E.

President/Managing Engineer
Enclosures
c: Rhetta Hogan, Assistant City Manager, [email protected] M:\Jobs\0069 City of Yreka\0069.66 2023 Water and Wastewater Utility Rate Study Update\07 Report\LTR Report-2023 Utility Rate Study.docx 9/8/23
Yreka City Council Meeting November 21, 2023 55 of 99
TABLES
Yreka City Council Meeting November 21, 2023 56 of 99
Fund Depart Code Account Description
Inflation
Factor
Actual
(FY 21-22)
Actual
(FY 22-23)
Budgeted
(FY 23-24)
Projected
(FY 24-25)
Projected
(FY 25-26)
Projected
(FY 26-27)
Projected
(FY 27-28)

FINANCE
70 30 100 thru 104 Wages 4% $104,831 $100,644 $111,638 $116,104 $120,748 $125,578 $130,601 70 30 310 thru 390 Employee Benefits 5% $76,347 $75,302 $78,937 $82,884 $87,028 $91,379 $95,948 70 30 100 thru 390 ACM (Split 25/25/50 Water/Waste/GF) 3.5% $0 $0 $48,000 $49,680 $51,419 $53,218 $55,081 UAL Funding 2.0% $0 $0 $30,000 $30,600 $31,212 $31,836 $32,473 70 30 510 thru 513 Clothing, Dues, Travel & Training 3% $1,325 $3,600 $3,708 $3,819 $3,934 $4,052 $4,173 70 30 515 thru 517 Supplies 3% $22,300 $29,000 $29,870 $30,766 $31,689 $32,640 $33,619 70 30 525 & 526 Professional & Contract Services 3% $57,427 $50,000 $51,500 $53,045 $54,636 $56,275 $57,964 Subtotal $262,230 $258,546 $353,653 $366,898 $380,666 $394,979 $409,859

PUBLIC WORKS ADMINISTRATION
70 300 100 thru 104 Wages 4% $98,746 $110,482 $114,901 $119,497 $124,277 $129,248 $134,418 70 300 310 thru 390 Employee Benefits 5% $71,982 $83,010 $87,161 $91,519 $96,094 $100,899 $105,944 70 300 100 thru 390 PW Foreman (30% of cost) 3.5% $0 $0 $0 $36,038 $37,299 $38,605 $39,956 70 300 100 thru 390 Planning Support (Split 25/25/50 Water/Waste/GF) 3.5% $0 $0 $27,750 $28,721 $29,726 $30,767 $31,844 70 300 515 thru 517 Supplies & Communications 3% $4,426 $1,000 $1,030 $1,061 $1,093 $1,126 $1,159 70 300 519 Advertising 3% $0 $0$0$0$0$0$0
70 300 525 Professional Services & Ord. Update 3% $29,959 $74,000 $76,220 $78,507 $80,862 $83,288 $85,786 Subtotal $205,113 $268,492 $307,062 $355,343 $369,352 $383,932 $399,108

WATER DISTRIBUTION
70 500 100 thru 104 Wages 4% $196,796 $305,824 $240,569 $250,192 $260,199 $270,607 $281,432 70 500 310 thru 390 Employee Benefits 5% $158,750 $238,079 $172,476 $181,100 $190,155 $199,663 $209,646 70 550 100 thru 390 New Operator 3.5% $0 $0 $126,000 $130,410 $134,974 $139,698 $144,588 70 500 416 Special Department Supplies 3% $10,980 $24,000 $24,720 $25,462 $26,225 $27,012 $27,823 70 500 420 Maintenance and Operations 3% $36,384 $57,500 $59,225 $61,002 $62,832 $64,717 $66,658 70 500 422 & 450 Small Tools & Equipment 3% $15,011 $17,800 $18,334 $18,884 $19,451 $20,034 $20,635 70 500 4__ Short-Term Asset Replacement 3% $0 $194,512 $200,347 $206,358 $212,549 $218,925 $225,493 70 500 510 thru 513 Training 3% $7,677 $7,300 $7,519 $7,745 $7,977 $8,216 $8,463 70 500 515 thru 517 Office Supplies & Communications 3% $5,844 $7,300 $7,519 $7,745 $7,977 $8,216 $8,463 70 500 520 Chargeback Amounts 3% $94,615 $85,594 $88,162 $90,807 $93,531 $96,337 $99,227 70 500 525 Professional & Backflow Services 3% $39,568 $18,000 $18,540 $19,096 $19,669 $20,259 $20,867 70 500 526 Contract Services 3% $0 $19,000 $19,570 $20,157 $20,762 $21,385 $22,026 70 500 530 Insurance & Claims 3% $2,265 $1,396 $1,438 $1,481 $1,525 $1,571 $1,618 70 500 535 Fees - Distribution Cert 3% $270 $1,000 $1,030 $1,061 $1,093 $1,126 $1,159 Subtotal $568,159 $977,305 $985,449 $1,021,498 $1,058,919 $1,097,766 $1,138,097

WATER SUPPLY AND TREATMENT
70 510 100 thru 104 Wages 4% $279,013 $266,637 $307,911 $320,227 $333,037 $346,358 $360,212 70 510 310 thru 390 Employee Benefits 5% $195,954 $179,158 $263,699 $276,884 $290,728 $305,265 $320,528 70 510 416 Special Department Supplies 3% $1,959 $4,000 $4,120 $4,244 $4,371 $4,502 $4,637 70 510 416 Outside Lab Testing 3% $3,226 $4,500 $4,635 $4,774 $4,917 $5,065 $5,217 70 510 420 Maintenance and Operations 3% $31,953 $25,000 $25,750 $26,523 $27,318 $28,138 $28,982 70 510 420 Telemetry Maintenance 3% $9,811 $10,000 $10,300 $10,609 $10,927 $11,255 $11,593 70 510 420 Chemicals 5% $31,964 $40,000 $42,000 $44,100 $46,305 $48,620 $51,051 70 510 420 Fall Creek Pipeline & PS Maintenance 3% $12,400 $18,000 $18,540 $19,096 $19,669 $20,259 $20,867 70 510 422 Small Tools 3% $2,712 $1,000 $1,030 $1,061 $1,093 $1,126 $1,159 70 510 4__ Short-Term Asset Replacement 3% $0 $121,238 $124,875 $128,621 $132,480 $136,455 $140,548 TABLE 1
City of Yreka - Water Utility
Budgeted and Projected Expenditures 1 of 3
Yreka City Council Meeting November 21, 2023 57 of 99
Fund Depart Code Account Description
Inflation
Factor
Actual
(FY 21-22)
Actual
(FY 22-23)
Budgeted
(FY 23-24)
Projected
(FY 24-25)
Projected
(FY 25-26)
Projected
(FY 26-27)
Projected
(FY 27-28)
70 510 450 Equip. & Meter Calibration 3% $4,065 $8,500 $8,755 $9,018 $9,288 $9,567 $9,854 70 510 510 thru 513 Training 3% $2,775 $4,500 $4,635 $4,774 $4,917 $5,065 $5,217 70 510 515 thru 517 Office Supplies & Communications 3% $14,242 $9,000 $9,270 $9,548 $9,835 $10,130 $10,433 70 510 518 Electric & Propane 3% $236,495 $289,000 $297,670 $306,600 $315,798 $325,272 $335,030 70 510 520 Chargeback Amounts 3% $36,328 $24,898 $25,645 $26,415 $27,207 $28,023 $28,864 70 510 521 Building Maintenance 3% $2,748 $4,000 $4,120 $4,244 $4,371 $4,502 $4,637 70 510 525 Professional & Legal Services 3% $24,156 $75,000 $77,250 $79,568 $81,955 $84,413 $86,946 70 510 525 FERC & EIS/EIR Prof Services 3% $338 $5,000 $5,150 $5,305 $5,464 $5,628 $5,796 70 510 526 Contractual Services 3% $0 $500 $515 $530 $546 $563 $580 70 510 530 Property Insurance 3% $66,375 $57,758 $59,491 $61,275 $63,114 $65,007 $66,957 70 510 534 County Prop Taxes - Water 3% $124 $200 $206 $212 $219 $225 $232 70 510 535 Fees - State/County/Agencies 3% $14,001 $20,600 $21,218 $21,855 $22,510 $23,185 $23,881 Subtotal $970,639 $1,168,490 $1,316,785 $1,365,482 $1,416,068 $1,468,622 $1,523,221

WATER CONSERVATION (BMP)
70 520 100 thru 104 Wages 4% $5,804 $5,873 $6,149 $6,395 $6,651 $6,917 $7,193 70 520 310 thru 390 Employee Benefits 5% $4,126 $3,362 $3,830 $4,022 $4,223 $4,434 $4,655 70 520 510 Clothing & Personal Expense 3% $0 $100 $103 $106 $109 $113 70 520 515 thru 517 Supplies and Communications 3% $975 $1,100 $1,133 $1,167 $1,202 $1,238 $1,275 70 520 519 Advertising 3% $0 $2,500 $0 $0 $0 $0
70 520 520 Fuel Chargeback-Fleet 3% $0 $100 $103 $106 $109 $113 70 520 525 Urban Water Management Plan 3% $1,374 $5,000 $5,150 $5,305 $5,464 $5,628 $5,796 Subtotal $12,279 $18,035 $16,468 $17,100 $17,758 $18,441 $18,920

GREENHORN RESERVOIR
70 530 100 thru 109 Wages 4% $0 $54,760 $87,762 $91,272 $94,923 $98,720 $102,669 70 530 310 thru 390 Employee Benefits 5% $0 $44,955 $70,584 $74,113 $77,819 $81,710 $85,795 70 530 416-450 Maintenance & Operations, Tools, Security 3% $0 $17,544 $18,070 $18,612 $19,171 $19,746 70 530 4__ Short-Term Asset Replacement 3% $0 $22,700 $23,381 $24,082 $24,805 $25,549 $26,316 70 530 515 thru 517 Supplies and Communications 3% $0 $360 $371 $382 $393 $405 $417 70 530 518 Water/Sewer/LFF 3% $0 $16,135 $16,619 $17,118 $17,631 $18,160 70 530 834 County Property Taxes 3% $0 $897 $924 $951 $980 $1,009 70 530 520 Maintenance & Operations 3% $89,161 -$4,458 $5,000 $5,150 $5,305 $5,464 $5,628 Subtotal $89,161 $152,892 $222,711 $231,681 $241,027 $250,763 $246,817

CAPITAL PROJECTS-WATER DISTRIBUTION
71 300 650 Capitalized Equipment $0 $0 $0 $0 $0 $0 $0
71 500 100 thru 390 Wages and Benefits $34,590 $0 $0 $0 $0 $0 $0 71 500 525 & 526 Professional Services & Fees $0 $0 $0 $0 $0 $0 $0 71 500 625 HWY 3 Paving $0 $0 $0 $0 $0 $0 $0
71 500 625 Fairgrounds Water Line $0 $0 $0 $0 $0 $0 $0
71 500 625 STIP - Foothill Water Main/Lennox $0 $0 $0 $0 $0 $0 $0 E. Lennox Pipeline Replacement $0 $100,000 $0 $0 $0 $0 $0 71 500 6036-625 STIP N. Oregon PPNO2518 $0 $0 $0 $0 $0 $0 $0 71 500 6037-625 STIP S. Oregon PPNO2500 $0 $0 $0 $0 $0 $0 $0 Near-Term Item Nos. 4 & 5 in
WMP
TABLE 1
City of Yreka - Water Utility
Budgeted and Projected Expenditures 2 of 3
Yreka City Council Meeting November 21, 2023 58 of 99
Fund Depart Code Account Description
Inflation
Factor
Actual
(FY 21-22)
Actual
(FY 22-23)
Budgeted
(FY 23-24)
Projected
(FY 24-25)
Projected
(FY 25-26)
Projected
(FY 26-27)
Projected
(FY 27-28)
HWY 3 Water Project $0 $1,734,000 $0 $0 $0 $0 $0
Ongoing Steel Water Main & Service Replacement $0 $0 $0 $0 $500,000 $0$0 Water Master Plan Update $0 $0 $11,000 $11,000 $0 $0 $0 Meter Head Upgrade $0 $0 $0 $0 $0 $0 $0
City Hall Upgrade $0 $375,000 $375,000 $0 $0 $0 $0
Subtotal $34,590 $2,209,000 $386,000 $11,000 $500,000 $0 $0

CAPITAL PROJECTS-WATER SUPPLY AND TREATMENT
71 510 100 thru 390 Wages and Benefits $0 $0 $0 $0 $0 $0 $0 71 510 525 Professional Services $0 $0 $0 $0 $0 $0 $0
71 510 650 Capitalized Equipment $0 $0 $0 $0 $0 $0 $0
71 510 650 thru 690 Capitalized Equip (Trucks) & Expenses $0 $0 $0 $0 $0 $0 $0 Water Supply and Storage Improvements $0 $0 $4,939,000 $0 $0 $0 $0 South Yreka Water Supply Distributuion Improvements
(Greenhorn Reservoir Intake & Treatment) (Anticipate
Grant Funding)
$0 $0 $0 $0 $32,271,000 $0 $0
71 510 625 E. Lennox: Replace Filters $0 $0 $1,016,721 $0 $0 $0 $0 71 510 625 Cathodic Protection Survey $0 $0 $0 $40,000 $0 $0 $0 71 510 625 Fall Creek Master Meter Replacement $0 $0 $0 $0 $0 $150,000 $0 71 510 625 Fall Creek Pipeline Assessment $0 $0 $0 $0 $0 $0 $0 71 510 625 Upgrade SCADA Services $0 $0 $55,000 $0 $0 $0 $0 Supplemental Water Supply Feasibility Study (2025-
2030) $0 $0 $0 $0 $0 $43,000 $0
Alternative Water Supply $0 $0 $0 $0 $0 $0 $0
Land Acquisition Watershed Protection $0 $0 $1,500,000 $0 $0 $0 $0 Subtotal $0 $0 $7,510,721 $40,000 $32,271,000 $193,000 $0

WATER DEBT SERVICING
72 500 740 & 745 Capital Lease $86,252 $86,252 $86,252 $86,252 $28,750 $0 $0 72 510 740 & 745 USDA Rural Development Loan Payment (2010) $263,080 $262,986 $262,986 $262,986 $262,986 $262,986 $262,986 Subtotal $349,332 $349,238 $349,238 $349,238 $291,736 $262,986 $262,986

INTERNAL SERVICES
ICA Expense 70-000-0000-760-001 4% $274,666 $229,267 $238,438 $247,975 $257,894 $268,210 $278,938 Subtotal $274,666 $229,267 $238,438 $247,975 $257,894 $268,210 $278,938 Total Expenditures, Capital and Transfers $2,766,169 $5,631,265 $11,686,525 $4,006,215 $36,804,419 $4,338,699 $4,277,947 Capital Improvement funded by grants.

City portion of rate-funded Capital Imrpovements per Water Master Plan and DIF Study.

Near-term Item No. 3 in WMP
Near-term Item No. 6 in WMP
Near-term Item No. 8 in WMP
Portion of Long-Term Item
Nos. 4 & 5 in WMP
Near-Term Item No. 7 in
WMP
TABLE 1
City of Yreka - Water Utility
Budgeted and Projected Expenditures 3 of 3
Yreka City Council Meeting November 21, 2023 59 of 99
TABLE 2
City of Yreka - Water Utility
Short-Term Asset Replacement Schedule
Water Distribution
Short-Term Asset Replacement Period Estimated Cost Annual Reserve Computer Server 5 $5,000 $1,000
Computer Work Stations 5 $14,000 $2,800Lab Equipment 5 $10,000 $2,000Replace Trash Pumps and Generators 5 $3,000 $600 Utility Locate Equipment Replacement 5 $10,000 $2,000Trench Compaction Equipment 5 $5,000 $1,000 Meter Reading Equipment 5 $30,000 $6,000Storage Tank Dive Inspections (9 tanks @ $20,000, 2 per year) 5 $20,000 $4,000Storage Tank Maintenance (9 tanks @ est. 1 per 5 years) 10 $300,000 $30,000 Replace Telemetry & SCADA Equipment 5 $30,000 $6,000Vehicle (1 - Water Meter Service Truck) 5 $85,000 $17,000Vehicle (1 - Construction Oversite Truck - 1/3 Wat. Dist., 1/3 Wat. Trmt., 1/3 WW Coll .= $60,000 total) 5 $20,000 $4,000 Chainsaws (Split 40% Wat. Dist., 40% WW Coll., 20% Gen. Fund - 6 per 5 yrs = $8,400 total) 5 $3,360 $672Copier (1/3 Water Dist., 1/3 WW Coll., 1/3 Gen. Fund = $20,100 total) 5 $6,700 $1,340Chipper (Split 40% Wat. Dist., 40% WW Coll., 20% Gen. Fund = $65,000 total) 10 $26,000 $2,600Skid Steer (Split 40% Wat. Dist., 40% WW Coll., 20% Gen. Fund = $150,000 total) 10 $60,000 $6,000Backhoe #1 (1/3 Water Dist., 1/3 WW Coll., 1/3 Gen. Fund = $150,000 total) 10 $50,000 $5,000Backhoe #2 (1/3 Water Dist., 1/3 WW Coll., 1/3 Gen. Fund = $150,000 total) 10 $50,000 $5,000Vac Truck #1 (70% Water Dist., 30% Storm Wtr = $500,000) 15 $350,000 $23,333 Generators (2 Portables @ $100,000 each) 20 $200,000 $10,000 Ditch Witch 10 $75,000 $7,500Maintenance on Booster PS Buildings 15 $50,000 $3,333Rebuild PRV Station Valves (6 @ $10,000 = $60,000 Total) 15 $60,000 $4,000 Excavator (Split 40% Wat. Dist., 40% WW Coll., 20% Gen. Fund = $120,000 total) 15 $80,000 $5,3335-Yd Dump Truck (Split 40% Wat. Dist., 40% WW Coll., 20% Gen. Fund = $200,000 total) 15 $48,000 $3,20010-Yd Dump Truck (Split 40% Wat. Dist., 40% WW Coll., 20% Gen. Fund = $180,000 total) 15 $72,000 $4,800Generator (450 kW Emergency Stationary for Serv. Centr./Fire/Com. Centr) 20 $240,000 $12,000 North St. Booster Pump and Motor Replacement 20 $80,000 $4,000Barham Booster Pump and Motor Replacement 20 $80,000 $4,000State St. Booster Pump and Motor Replacement 20 $80,000 $4,000Humbug Booster Pump and Motor Replacement 20 $80,000 $4,000Outsen Booster Pump and Motor Replacement 20 $80,000 $4,000Yellow Hammer Booster Pump and Motor Replacement 20 $80,000 $4,000 Subtotal Annual Cost: $194,512
Yreka City Council Meeting November 21, 2023 60 of 99
TABLE 3
City of Yreka - Water Utility
Short-Term Asset Replacement Schedule
Water Supply Treatment
Short-Term Asset Replacement Period Estimated Cost Annual Reserve Computer Server 5 $5,000 $1,000Computer Work Stations 5 $10,000 $2,000Lab Equipment 5 $10,000 $2,000Replace Telemetry & SCADA Equipment 5 $60,000 $12,000Vehicles (4-Wtr. Trtmt. Serv. Trucks W/ Utility Beds @ $85,000 ea, Staggered Replacement Schedule) 5 $340,000 $68,000Vehicle (1-Const. Oversight Truck - 1/3 Wtr. Dist., 1/3 Wtr. Trtmt., 1/3 WW Coll. = $60,000 Total) 5 $20,000 $4,000Masticator Head (Split 50% Wtr. Trtmt., 50% WW Trtmt = $50,000 Total) 7 $25,000 $3,571 Chlorination Equipment Replacement 10 $60,000 $6,000
Coagulant Feed Equipment Replacement 10 $25,000 $2,500
Fall Creek Impellers 10 $40,000 $4,000
Side-by-Side GHR (Split 50% Wtr. Trtmt., 50% GH Reservoir = $30,000) 10 $15,000 $1,500 Emergency Chlorination Equipment Replacement 15 $50,000 $3,333 Maintenance on Treatment Buildings 15 $50,000 $3,333
North Well Pump and Motor Replacement (Moved from Distribution) 20 $80,000 $4,000 Davis Well Pump and Motor Replacement (Moved from Distribution) 20 $80,000 $4,000 Subtotal Annual Cost: $121,238
Yreka City Council Meeting November 21, 2023 61 of 99
TABLE 4
City of Yreka - Water Utility
Short-Term Asset Replacement Schedule
Greenhorn Reservoir
Short-Term Asset Replacement Period Estimated Cost Annual Reserve GHR Small Tools 5 $7,000 $1,400Vehicle (1-GHR Service truck) 5 $85,000 $17,000Side-by-Side GHR (Split 50% Wtr. Trtmt., 50% GH Reservoir = $30,000) 10 $15,000 $1,500High Lift Mower 15 $30,000 $2,000Old Hickory Shed 15 $12,000 $800 Subtotal Annual Cost: $22,700
Yreka City Council Meeting November 21, 2023 62 of 99
TABLE 5
City of Yreka - Water Utility
Financial Plan and Summary of Enterprise Fund
Actual
(FY 21-22)
Actual
(FY 22-23)
Budgeted
(FY 23-24)
Projected
(FY 24-25)
Projected
(FY 25-26)
Projected
(FY 26-27)
Projected
(FY 27-28)

STANDARD WATER RATES USED
5/8" Meter Fixed Monthly Service Charge $36.97 $38.45 $42.14 $46.19 $50.62 $55.48 $60.81 (See Table 12 for Larger Meters Charges) Percent annual increase on fixed rate 4.0% 9.60% 9.60% 9.60% 9.60% 9.60% Percent annual increase on consumption 4.0% 9.60% 9.60% 9.60% 9.60% 9.60% Single-Family Consumption Rates ($/1000 gallons) Excess over 101 Gallons $2.18 $2.26 $2.48 $2.71 $2.98 $3.26 $3.57 Non-Single-Family Consumption Rate ($/1000 gallons) Excess over 101 Gallons $2.18 $2.26 $2.48 $2.71 $2.98 $3.26 $3.57

LOW INCOME WATER RATES
5/8" Meter Fixed Monthly Service Charge $34.97 $36.45 $40.14 $44.19 $48.62 $53.48 $58.81Consumption Rates same as Single Family

BEGINNING RESERVES AVAILABLE BALANCE
Operation and Maintenance (40% of Expenditures) $1,191,388 $843,032 $1,137,504 $1,280,851 $1,343,201 $1,393,516 $1,445,801USDA Rural Development Debt Service $300,000 $300,000 $263,000 $263,000 $349,000 $349,000 $292,000Fall Creek Emergency Repair/Replacement $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 Development Impact Fee Reserve $160,755 $696,562 $704,062 $711,562 $719,062 $726,562 $734,062Water Improvements Fund $3,656,685 $4,437,936 $3,757,994 $2,527,569 $2,363,455 $2,139,634 $2,568,040 Total Reserves $8,808,828 $9,777,531 $9,362,560 $8,282,982 $8,274,717 $8,108,711 $8,539,903

REVENUES
Fixed Service Charges $1,775,788 $1,847,000 $2,024,000 $2,218,000 $2,431,000 $2,664,000 $2,920,000Consumption Charges $1,297,482 $1,349,000 $1,479,000 $1,621,000 $1,777,000 $1,948,000 $1,948,000Collection Recoveries -$110 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000Water Set-up Fees $8,775 $13,500 $13,500 $13,500 $13,500 $13,500 $13,500Backflow Inspection & Repair $14,020 $12,000 $15,000 $15,450 $15,914 $16,391 $16,883Fire Suppression $2,767 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500Hydrant Rental $1,400 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000Fines and Penalties $27,993 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000Development Impact Fees (DIF) $535,807 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500Gain on Sale of Equipt. $0 $0 $0 $0 $0 $0 $0 Other-Misc Income $23,779 $0 $0 $0 $0 $0 $0
Hwy 3 CDBG Receivable $1,849,795Hwy 3 Caltrans Receivable $978,725Grant Income $5,955,721 $0 $32,271,000 $0 $0 Investment Earnings $47,172 $98,000 $94,000 $83,000 $83,000 $81,000 $85,000 Total Revenue $3,734,872 $5,216,295 $10,606,946 $3,997,950 $36,638,414 $4,769,891 $5,030,383

EXPENDITURES
Finance $262,230 $258,546 $353,653 $366,898 $380,666 $394,979 $409,859 Public Works Administration $205,113 $268,492 $307,062 $355,343 $369,352 $383,932 $399,108Water Distribution $568,159 $977,305 $985,449 $1,021,498 $1,058,919 $1,097,766 $1,138,097 Water Supply & Treatment $970,639 $1,168,490 $1,316,785 $1,365,482 $1,416,068 $1,468,622 $1,523,221 Water Conservation (BMP) $12,279 $18,035 $16,468 $17,100 $17,758 $18,441 $18,920Greenhorn Reservoir $2,843,760 $89,161 $152,892 $222,711 $231,681 $241,027 $250,763 $246,817Capital Project-Water Distribution $34,590 $2,209,000 $386,000 $11,000 $500,000 $0 $0 Capital Project-Water Supply and Treatment $0 $0 $7,510,721 $40,000 $32,271,000 $193,000 $0Water Debt Servicing $349,332 $349,238 $349,238 $349,238 $291,736 $262,986 $262,986Internal Services $274,666 $229,267 $238,438 $247,975 $257,894 $268,210 $278,938 Total Expenditures $2,766,169 $5,631,265 $11,686,525 $4,006,215 $36,804,419 $4,338,699 $4,277,947

YEAR END VALUES
Total Restricted and Unrestricted Cash $9,777,531 $9,362,560 $8,282,982 $8,274,717 $8,108,711 $8,539,903 $9,292,339Total Cash Available for Capital Improvements $4,437,936 $3,757,994 $2,527,569 $2,363,455 $2,139,634 $2,568,040 $3,392,095 Debt-Coverage-Ratio (Desire >1.2): 3.87 0.84 0.66 1.12 2.14 3.37 3.86 Yreka City Council Meeting November 21, 2023 63 of 99
TABLE 6
City of Yreka - Water Utility
Recommended Water Rates
Current Proposed (FY23-24) Proposed (FY24-25) Proposed (FY25-26) Proposed (FY26-27) Proposed (FY27-28) CONSUMPTION CHARGES ($/1000 GALLONS)
Single-Family Consumption Rates 101 to 10,000 Gallons $2.26 $2.48 $2.71 $2.98 $3.26 $3.57 10,001 to 35,000 Gallons $2.26 $2.48 $2.71 $2.98 $3.26 $3.57 Excess over 35,000 Gallons $2.26 $2.48 $2.71 $2.98 $3.26 $3.57 Non-Single-Family Consumption Rate Excess over 101 Gallons $2.26 $2.48 $2.71 $2.98 $3.26 $3.57 METER
MONTHLY SERVICE CHARGES ($/MONTH) FACTOR
5/8" Meter (See Note 1) $38.45 $42.14 $46.19 $50.62 $55.48 $60.81 1.0 3/4" Meter $49.99 $54.78 $60.04 $65.81 $72.12 $79.05 1.3 1" Meter $57.68 $63.21 $69.28 $75.93 $83.22 $91.21 1.5 1 1/2" Meter $107.66 $118.00 $129.32 $141.74 $155.34 $170.26 2.8 2" Meter $153.80 $168.56 $184.75 $202.48 $221.92 $243.23 4.0 3" Meter $461.40 $505.69 $554.24 $607.45 $665.76 $729.68 12.0 4" Meter $692.10 $758.54 $831.36 $911.17 $998.64 $1,094.51 18.0 6" Meter $961.25 $1,053.53 $1,154.67 $1,265.52 $1,387.01 $1,520.16 25.0 8" Meter $1,345.75 $1,474.94 $1,616.54 $1,771.72 $1,941.81 $2,128.22 35.0 Note 1: Lifeline monthly service charges are $2.00 less than shown and apply to 5/8" meter accounts only.

Yreka City Council Meeting November 21, 2023 64 of 99
TABLE 7
City of Yreka - Wastewater Utility
Budgeted and Projected Expenditures
Fund Depart Code Account Description Inflation Factor Actual (FY 21-22) Actual (FY 22-23) Budgeted (FY 23-24) Projected (FY 24-25) Projected (FY 25-26) Projected (FY 26-27) Projected (FY 27-28)

FINANCE
80 30 100 thru 104 Wages 4% $103,885 $100,644 $123,089 $128,013 $133,133 $138,458 $143,99780 30 310 thru 390 Employee Benefits 5% $70,987 $75,302 $97,486 $102,360 $107,478 $112,852 $118,49580 30 100 thru 390 ACM (split 25/25/50 Water/Waste/GF) 3.5% $0 $0 $48,000 $49,680 $51,419 $53,218 $55,081 UAL Funding 2.0% $0 $0 $30,000 $30,600 $31,212 $31,836 $32,473 80 30 511 thru 513 Dues, Training, and Travel 3% $93 $3,600 $3,708 $3,819 $3,934 $4,052 $4,17380 30 515 thru 517 Supplies 3% $16,947 $21,000 $21,630 $22,279 $22,947 $23,636 $24,34580 30 526 & 526 Professional & Contract Services 3% $52,541 $47,000 $48,410 $49,862 $51,358 $52,899 $54,486 Subtotal $244,453 $247,546 $372,323 $386,613 $401,481 $416,952 $433,050

PUBLIC WORKS ADMINISTRATION
80 300 100 thru 104 Wages 4% $98,848 $110,482 $108,377 $112,712 $117,221 $121,909 $126,78680 300 310 thru 390 Employee Benefits 5% $67,049 $83,010 $80,636 $84,668 $88,901 $93,346 $98,01480 300 100 thru 390 PW Foreman (30% of cost) 3.5% $0 $0 $46,038 $47,649 $49,317 $51,043 $52,83070 30 100 thru 390 Planning Support (Split 25/25/50 Water/Waste/GF) 3.5% $0 $0 $37,750 $39,071 $40,439 $41,854 $43,31980 300 515 thru 519 Supplies and Advertising 3% $3,501 $1,000 $1,030 $1,061 $1,093 $1,126 $1,15980 300 525 thru 526 Professional Services & Ord. Updates 3% $26,277 $37,000 $38,110 $39,253 $40,431 $41,644 $42,893 Subtotal $195,675 $231,492 $311,941 $324,415 $337,401 $350,922 $365,000

WASTEWATER COLLECTION
80 550 100 thru 104 Wages 4% $91,082 $202,812 $210,924 $219,361 $228,135 $237,261 $246,75180 550 310 thru 390 Employee Benefits 5% $67,040 $144,937 $152,184 $159,793 $167,783 $176,172 $184,98080 550 100 thru 390 OIT 3.5% $0 $0 $100,000 $103,500 $107,123 $110,872 $114,75280 550 416 Special Department Supplies 3% $14,589 $23,000 $23,690 $24,401 $25,133 $25,887 $26,66380 550 420 & 421 Maintenance and Operations 3% $7,580 $45,000 $46,350 $47,741 $49,173 $50,648 $52,16780 550 422 & 450 Small Tools & Equipment 3% $1,301 $7,500 $7,725 $7,957 $8,195 $8,441 $8,69580 550 426 Contract Services-SSO Sampling 3% $0 $1,000 $1,030 $1,061 $1,093 $1,126 $1,15980 550 4__ Short-Term Asset Replacement 3% $0 $121,243 $124,880 $128,627 $132,485 $136,460 $140,55480 550 510 thru 513 Clothing, Travel, Training 3% $3,598 $2,200 $2,266 $2,334 $2,404 $2,476 $2,55080 550 515 thru 517 Office Supplies & Communications 3% $4,428 $3,500 $3,605 $3,713 $3,825 $3,939 $4,05780 550 518 Electric 3% $2,102 $3,000 $3,090 $3,183 $3,278 $3,377 $3,47880 550 519 Advertising 3% $0$0$0$0$0$0$080 550 520 Chargeback 3% $88,440 $87,880 $90,517 $93,232 $96,029 $98,910 $101,87780 550 521 Building Maintenance 3% $112 $200 $206 $212 $219 $225 $23280 550 525 & 526 Professional & Contract Services 3% $1,862 $56,600 $58,298 $60,047 $61,848 $63,704 $65,61580 550 530 Insurance & Claims 4% $3,458 $3,396 $3,532 $3,673 $3,820 $3,973 $4,13280 550 535 Fees-State/County Agencies 3% $2,031 $3,000 $3,090 $3,183 $3,278 $3,377 $3,47880 550 1027-525 Professional Services-FOG 3% $83,160 $35,000 $0 $0 $0 $0 $0 Subtotal $370,783 $740,268 $831,386 $862,016 $893,821 $926,846 $961,141

WASTEWATER DISPOSAL
80 560 100 thru 104 Wages 4% $248,096 $243,128 $282,937 $294,254 $306,025 $318,266 $330,99680 560 310 thru 390 Employee Benefits 5% $170,654 $193,931 $230,777 $242,316 $254,432 $267,153 $280,51180 560 416 Special Department Supplies 3% $25 $3,000 $3,090 $3,183 $3,278 $3,377 $3,47880 560 416 Outside Lab Testing 3% $15,716 $30,000 $30,900 $31,827 $32,782 $33,765 $34,77880 560 416 Chemicals 5% $170,506 $165,000 $173,250 $181,913 $191,008 $200,559 $210,58680 560 420 Maintenance and Operations 3% $66,260 $57,000 $58,710 $60,471 $62,285 $64,154 $66,07980 560 420 & 421 Sludge Disposal 3% $86,473 $65,000 $66,950 $68,959 $71,027 $73,158 $75,35380 560 422 Small Tools 3% $0 $2,000 $2,060 $2,122 $2,185 $2,251 $2,31980 560 425 Professional Services 3% $0 $0 $0 $0 $0 $0 $080 560 450 Gas Detector 3% $0 $0 $0 $0 $0 $0 $080 560 4__ Short-Term Asset Replacement 3% $0 $164,238 $169,165 $174,240 $179,467 $184,851 $190,39780 560 510 thru 513 Clothing, Dues, Travel & Training 3% $1,241 $6,300 $6,489 $6,684 $6,884 $7,091 $7,30380 560 515 thru 517 Office Supplies & Communication 3% $3,636 $3,400 $3,502 $3,607 $3,715 $3,827 $3,94280 560 518 Electric & Propane 3% $136,511 $173,000 $178,190 $183,536 $189,042 $194,713 $200,55480 560 518 Water/Sewer/LFF 3% $48,631 $45,000 $46,350 $47,741 $49,173 $50,648 $52,16780 560 518 Garbage 3% -$1,885 $800 $824 $849 $874 $900 $92780 560 519 Advertising 3% $0 $300 $309 $318 $328 $338 $34880 560 520 Chargeback Amounts 3% $20,053 $20,387 $20,998 $21,628 $22,277 $22,945 $23,63480 560 521 Building Maintenance 3% $3,000 $10,000 $10,300 $10,609 $10,927 $11,255 $11,593 1 of 2
Yreka City Council Meeting November 21, 2023 65 of 99
TABLE 7
City of Yreka - Wastewater Utility
Budgeted and Projected Expenditures
Fund Depart Code Account Description Inflation Factor Actual (FY 21-22) Actual (FY 22-23) Budgeted (FY 23-24) Projected (FY 24-25) Projected (FY 25-26) Projected (FY 26-27) Projected (FY 27-28) 80 560 525 Professional & Legal Services 3% $784 $10,000 $10,300 $10,609 $10,927 $11,255 $11,59380 560 526 Janitorial/Custodial 3% $3,600 $3,600 $3,708 $3,819 $3,934 $4,052 $4,17380 560 530 Property Insurance 3% $44,703 $27,112 $27,925 $28,763 $29,626 $30,515 $31,43080 560 535 Fees - State/County/Agencies 3% $29,611 $28,000 $28,840 $29,705 $30,596 $31,514 $32,460 Subtotal $1,047,615 $1,251,196 $1,355,575 $1,407,152 $1,460,794 $1,516,586 $1,574,621

WASTEWATER COLLECTION CAPITAL PROJECTS
81 000 760 Interfund Transfer Out - Fund 65 $0 $375,000 $0 $0 $0 $0 $081 550 450 Non-Capitalized Equipment $0 $14,877 $0 $0 $0 $0 $081 550 Various Capitalized Equipment & Expenses $289,454 $110,131 $0 $0 $0 $0 $081 550 3324-625 USDA Hwy 3 Sewer ($6.1M Loan)-City Portion $0 $500,700 $0 $0 $0 $0 $081 550 6037-625 Sewer - STIP S. Oregon $0 $300,000 $0 $0 $0 $0 $0 Wastewater Collection System Improvements - Construction Grant $0 $5,075,000 $0 $0 $0 $0 $0 Yreka Creek Sewer Improvement Project - CWSRF Planning Grant $0 $0 $0 $500,000 $0 $0 $4,000,000 General Sewer Improvements $0 $0 $0 $0 $0 $1,066,000 $0Center St. Area Sewer Improvements $0 $0 $0 $0 $0 $1,450,000 $0Yama St. Area Sewer Improvements-Phase 2 $0 $0 $0 $0 $0 $0 $0South St. Area Sewer Improvements $0 $0 $0 $0 $0 $0 $0 S. West St. Area Sewer Improvements $0 $0 $0 $0 $0 $0 $0 Aging Sewer Main Replacements (2026-2030) $0 $0 $0 $0 $0 $0 $0Industrial Waste Permit Expense $0 $0 $10,000 $1,000 $1,000 $1,000 $1,000 Wastewater Master Plan Update $0 $0 $0 $11,000 $11,000 $0 $0City Hall Upgrade $0 $0 $375,000 $375,000 $0 $0 $0 Subtotal $289,454 $6,375,708 $385,000 $887,000 $12,000 $2,517,000 $4,001,000

WASTEWATER DISPOSAL CAPITAL PROJECTS
81 560 0000-450 Non-Capitalized Equipt $0 $122,690 $0 $0 $0 $0 $081 560 0000-525 Professional Services $0 $191,400 $0 $0 $0 $0 $081 560 0000-650 Capitalized Equipt $0 $28,982 $0 $0 $0 $0 $0 AC Pavement Rehab at WWTP $0 $0 $0 $0 $0 $0
Overall Plant SCADA System Improvements $0 $0 $0 $0 $0 $0 Install Headworks Flowmeters $0 $0 $0 $0 $0 $0
Rehabilitate/Optimize Secondary Clarifiers $0 $0 $0 $0 $0 $0 Rehabilitate/Expand Chlorine Contact Basin $0 $0 $0 $0 $0 $0 Filtration Improvements $0 $0 $0 $0 $0 $0Digester Improvements $0 $0 $0 $0 $0 $0 Other WWTP Improvements $0 $0 $0 $0 $0 $0
Wastewater Treatment Plant Eval./Feas. Study $0 $0 $0 $0 $0 $0 $70,000 Subtotal $0 $343,072 $0 $0 $32,000,000 $0 $70,000

WASTEWATER DEBT SERVICE (INCLUDING DEBT RESERVES)
82 550 3024-740/745 2012 Sewer Improvements-USDA $206,234 $206,855 $206,855 $206,855 $206,855 $206,855 $206,85582 550 3324-745 Banner Bank Anticipation Note $55,000 $110,000 $0 $0 $0 $0 $0 SR3/Main St. Sewer Upgrade ($6.098M Loan) $0 $0 $241,131 $193,684 $193,684 $193,934 $193,158 Subtotal $261,234 $316,855 $447,986 $400,539 $400,539 $400,789 $400,013

INTERNAL SERVICES
80 000 760 Overhead Recovery Expenses 3% $208,577 $216,530 $223,026 $229,717 $236,608 $243,706 $251,018 Subtotal $208,577 $216,530 $223,026 $229,717 $236,608 $243,706 $251,018 Total Expenditures and Transfers $2,617,791 $9,722,666 $3,927,237 $4,497,452 $35,742,644 $6,372,802 $8,055,843 Project to be funded with grant dollars. City portion of rate-funded Capital Improvements per Sewer Master Plan and DIF Study.

Shown as 2020 Improvements in the Sewer Master Plan (Covers Item Nos. 1-9 in SMP Table 5)Shown in the Sewer Master Plan (Covers Item Nos. 12,15, 19, 25, 29, & 30 in SMP Table 5)Item No. 40 in SMP Table 5 (Covers Ratepayer's portion of cost)Enhanced improvements not discussed in the SMP $32,000,000
Improvements scheduled for 2026-2030 in DIF Study (Covers Item Nos. 13,14,16-18, & 34 in SMP Table 5)Improvements scheduled for 2021-2025 in Sewer Master Plan & DIF Study (Covers Ratepayer's portion of Item Nos. 33-39,41,43, & 44 in SMP Table 5.) 2 of 2
Yreka City Council Meeting November 21, 2023 66 of 99
TABLE 8
City of Yreka - Wastewater Utility
Short-Term Asset Replacement Schedule - Wastewater Collection Equipment Replacement Period Estimated Cost Annual Reserve Collection SystemComputer Server 5 $5,000 $1,000
Computer Work Stations 5 $14,000 $2,800Vehicle, Const Oversight Truck (1/3 Water Dist., 1/3 Water Treat., 1/3 WW Coll.) 5 $20,000 $4,000Chainsaws, 6 @ $8,400, (40% Water Dist., 40% WW Coll., 20% GF) 5 $3,360 $672 Copier, $20,100 (1/3 Water Dist., 1/3 Sewer Collect., 1/3 GF) 8 $6,700 $838Vehicle & Equipt - Replace inspection camera & dedicated van 10 $250,000 $25,000 Chipper, $65,000 (40% Water Dist., 40% WW Coll., 20% GF) 10 $26,000 $2,600 Skidsteer, $150,000 (40% Water Dist., 40% WW Coll., 20% GF) 10 $60,000 $6,000 Backhoe 1, $150,000 (1/3 Water Dist., 1/3 WW Coll., 1/3 GF) 10 $50,000 $5,000 Backhoe 2, $150,000 (1/3 Water Dist., 1/3 WW Coll., 1/3 GF) 10 $50,000 $5,000 Vac Truck #2 (100% Sewer Collection) 10 $500,000 $50,000 Excavator, $200,000 (40% Water Dist., 40% WW Coll., 20% GF) 15 $80,000 $5,333 5-Yd Dump Truck, $120,000 (40% Water Dist., 40% WW Coll., 20% GF) 15 $48,000 $3,200 10-Yd Dump Truck, $120,000 (40% Water Dist., 40% WW Coll., 20% GF) 15 $72,000 $4,800 Pump (Portable - Dri-Prime Silenced) 15 $75,000 $5,000
Total Annual Collection Short-Term Assets: $121,243
Yreka City Council Meeting November 21, 2023 67 of 99
TABLE 9
City of Yreka - Wastewater Utility
Short-Term Asset Replacement Schedule - Wastewater Disposal Equipment Replacemen t Period Estimated Cost Annual Reserve Proposed WWTP EquipmentComputer Server 5 $5,000 $1,000
Computer Work Stations 5 $10,000 $2,000
Replace Polymer Equipment 5 $20,000 $4,000
Replace SCADA/Computer/Software 5 $30,000 $6,000
Replace Sludge Pumps 5 $20,000 $4,000
Vehicle (1 - WWTP Truck w/ Lift Gate) 5 $85,000 $17,000 Flail Mower 5 $5,000 $1,000
Masticator Head, $50,000 (50% Water Treat./50% WW Treat) 7 $25,000 $3,571 SCADA/Telemetry (Lift Stations) 10 $30,000 $3,000
Replace Lift Station Pumps 10 $50,000 $5,000
Centrifuge Component Replacement 10 $50,000 $5,000
Replace DAF Feed Pumps & Air Compressor 10 $30,000 $3,000 Generator (Portable) 10 $100,000 $10,000
Replace (3) Effluent Pumps 10 $40,000 $4,000
Replace (4) RAS Pumps 10 $60,000 $6,000
Replace (2) Clarifier Mechanisms & Drive Motors 10 $200,000 $20,000 Maintenance on Buildings/Structures 10 $50,000 $5,000
Replace Disc Filter Screens 10 $40,000 $4,000
Replace Aeration Basin Aerators 10 $150,000 $15,000
Replace Chlorination Equipment 10 $65,000 $6,500
Headworks Screen Component Replacement 10 $15,000 $1,500 Maintenance on Lift Station Building/Structures 15 $15,000 $1,000 Generator (450 kW Stationary Standby) 15 $250,000 $16,667 Replace Digester Diffusers & Blowers 15 $200,000 $13,333 Tractor 15 $100,000 $6,667
Subtotal Annual Cost: $164,238
Yreka City Council Meeting November 21, 2023 68 of 99
TABLE 10
City of Yreka - Wastewater Utility
Financial Plan and Enterprise Fund Summary
Actual
(FY 21-22)
Actual
(FY 22-23)
Budgeted
(FY 23-24)
Projected
(FY 24-25)
Projected
(FY 25-26)
Projected
(FY 26-27)
Projected
(FY 27-28)

WASTEWATER RATES USED
Single-Family Monthly Service Charge $49.13 $51.10 $55.95 $61.26 $67.08 $73.46 $80.44 Input: 4.0% 9.50% 9.50% 9.50% 9.50% 9.50%

ESTIMATED NUMBER OF SINGLE-FAMILY CONNECTION EQUIVALENTS Beginning of Year HEs 4,845 4,845 4,845 4,845 4,845 4,845 4,845Estimated Additional HEs due to Growth - 000000Estimated Year End HEs 4,845 4,845 4,845 4,845 4,845 4,845 4,845

BEGINNING RESERVES AVAILABLE BALANCE
Operation and Maintenance (40% of Expenditures) $1,065,372 $743,411 $988,200 $1,148,490 $1,192,078 $1,237,399 $1,284,523USDA Rural Development Debt Service $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000Development Impact Fee Reserve $411,004 $457,552 $915,104 $917,104 $919,104 $921,104 $923,104Wastewater Improvement Fund $3,898,624 $5,105,753 $4,125,565 $5,885,796 $6,357,871 $7,422,844 $6,232,624 Total Reserves $5,800,000 $6,556,715 $6,278,869 $8,201,390 $8,719,053 $9,831,346 $8,690,250

REVENUES
Fixed Service Charges $2,812,797 $2,925,309 $3,203,214 $3,507,519 $3,840,733 $4,205,603 $4,605,135 Sewer Set-up Fees $8,475 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000Investment Earnings $32,363 $58,355 $55,882 $72,992 $77,600 $87,499 $77,343Other Operation Income $16,771 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 Caltrans Receivable $1,658,058Anticipated Grant Reimbursement $5,075,000 $0 $500,000 $32,000,000 $0 $4,000,000 Development Impact Funds for Debt (see Note 1) $46,548 $457,552 $2,000 $2,000 $2,000 $2,000 $2,000 Total Revenue $2,916,954 $8,529,716 $4,932,654 $4,096,011 $35,933,833 $4,308,602 $8,697,978

EXPENDITURES
Finance $244,453 $247,546 $372,323 $386,613 $401,481 $416,952 $433,050 Public Works Administration $195,675 $231,492 $311,941 $324,415 $337,401 $350,922 $365,000Wastewater Collection $370,783 $740,268 $831,386 $862,016 $893,821 $926,846 $961,141Wastewater Treatment & Disposal $1,047,615 $1,251,196 $1,355,575 $1,407,152 $1,460,794 $1,516,586 $1,574,621Wastewater Collection Capital Projects $289,454 $6,375,708 $385,000 $887,000 $12,000 $2,517,000 $4,001,000Wastewater Disposal Capital Projects $0 $343,072 $0 $0 $32,000,000 $0 $70,000 Wastewater Debt Service $261,234 $316,855 $447,986 $400,539 $400,539 $400,789 $400,013 Internal Services $208,577 $216,530 $223,026 $229,717 $236,608 $243,706 $251,018 Total Expenditures $2,617,791 $9,722,666 $3,927,237 $4,497,452 $35,742,644 $6,372,802 $8,055,843

YEAR END VALUES
Total Restricted & Unrestricted Cash $6,099,163 $5,363,765 $7,284,286 $7,799,949 $8,910,242 $7,767,146 $9,332,386 Total Cash Available for Capital Improvements $5,105,753 $4,125,565 $5,885,796 $6,357,871 $7,422,844 $6,232,624 $7,797,863 Debt-Coverage-Ratio (Desire >1.2): 3.25 2.42 0.40 0.96 1.51 2.13 2.78 Notes:

Proposed Single-Family Rate Increase:

1. To the extent that Development Impact Fees are available at that time.

Yreka City Council Meeting November 21, 2023 69 of 99
Current Proposed FY 23-24 Proposed FY 24-25 Proposed FY 25-26 Proposed FY 26-27 Proposed FY 27-28 Single-Family Flat Rate per Unit $51.10 $55.95 $61.26 $67.08 $73.46 $80.44Low Income Single-Family Rate per Unit $49.10 $53.95 $59.26 $65.08 $71.46 $78.44Multi-Family Flat Rate per Unit $51.10 $55.95 $61.26 $67.08 $73.46 $80.44Non-Residential Flat Rate per HE (see Notes) $51.10 $55.95 $61.26 $67.08 $73.46 $80.44 Notes:

TABLE 11
City of Yreka - Wastewater Utility
Recommended Wastewater Rates

1. One household equivalent (HE) equals 200 gallons per day of wastewater flow, which is the estimated flow from a typical single-family household.2. Non-residential HEs based on 90% of winter water consumption or available flow factors for similar type of discharges.

Yreka City Council Meeting November 21, 2023 70 of 99

FIGURES
Yreka City Council Meeting November 21, 2023 71 of 99

CITY OF YREKA

MONTHLY WATER BILL COMPARISON
(Based on 1,582 Cubic Feet per Month Average Water Use) FIGURE 1
$50.07 $50.45 $51.51
$55.64
$58.50
$64.96
$71.23 $72.42 $72.66 $74.60 $75.30 $77.00
$79.51
$89.18
$96.70
$0
$20$40$60$80
$100$120
FY22-23 FY22-23 FY22-23 FY22-23 FY22-23 FY22-23 FY23-24 FY22-23 FY22-23 FY22-23 FY22-23 2022 FY21-22 FY22-23 FY22-23 City of
Redding
Centerville
CSD
City of Weed Mountain
Gate CSD
McCloud CSD City of Yreka City of Yreka City of Shasta
Lake
Clear Creek
CSD
City of
Dunsmuir
Bella Vista

WD (M&I)
2022 CA Ave.
(1)
City of
Oroville
City of
Ashland
Shasta CSD
(1) Per World Population Review.

Yreka City Council Meeting November 21, 2023 72 of 99

CITY OF YREKA

MONTHLY SEWER BILL COMPARISON
FIGURE 2
$32.15
$51.10
$55.66 $55.95 $56.00
$64.17 $66.00 $67.00
$75.17 $75.90
$85.93
$90.15
$0
$10$20$30$40$50$60$70$80$90
$100
Weed
FY22-23
Yreka
FY22-23
Cottonwood
FY19-20
Yreka
FY23-24
McCloud
FY22-23
Redding
FY22-23
Mt. Shasta
FY22-23
Dunsmuir
FY22-23
Shasta Lake
FY22-23
American
Valley CSD
FY22-23
Colusa
FY20-21
Williams
FY20-21
Yreka City Council Meeting November 21, 2023 73 of 99

CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
TO: Yreka City Council
FROM: Emily Aldrich, Finance Director and Matthew Bray, Public Works Director
PREPARED BY: Emily Aldrich, Finance Director
AGENDA TITLE: Conduct Public Hearing and Adopt a Resolution of the City Council of the City of Yreka approving the Development Impact Fee Reports and Updating the City’s Capital Improvement Plan and Development Impact Fee Program
MEETING DATE: November 21, 2023
Recommendation:

Conduct Public Hearing and Adopt Resolution 2023-53 of the City Council of the City of Yreka approving the Development Impact Fee Reports and Updating the City’s Capital Improvement Plan and Development Impact Fee Program.

Annual Development Impact Fee Review:

On November 16, 2006, the City Council adopted Ordinance 790 establishing and implementing development impact fees (DIFs) and made it a part of Title 11, Chapter

11.23. This Ordinance was amended twice, by Ordinance 795, and Ordinance 799 for technical amendments and re-titling it Municipal Utility Services, Impact and Connection Fees. Section 11.23.170 of Chapter 11.23 provides for an annual review of the capital improvement plan and an accounting of DIFs received and expended. The last report was made to the Yreka City Council on December 20, 2022.

Based upon Government Code Section 66006(b), development fees must be reviewed annually and may be adjusted by the City Council after a noticed public hearing. The annual report shall include the following items.

1. A brief description of the type of fee collected;

2. The amount of the fee;

3. The beginning and ending balance of each type of fee held by the City;

4. The amount of fees collected and the interest earned;

5. An identification of each public improvement and the amount expended;

6. An identification of the approximate date by which the construction of the public improvement will be complete;

7. A description of each interfund transfer or loan made; and

8. The amount of refunds made (none reported).

As required by the Government Code, this information must be made available to the Yreka City Council Meeting November 21, 2023 74 of 99
public through posting of a draft of this report. Upon the completion of a fifteen day review period, Council will be asked to accept and file the report.

Funds held in reserves, in excess of five or more years are dedicated to specific expenditures contained in the Master Facility Plan and are consistent with the community's goals.

ALTERNATIVES/OPTIONS: This item is presented for review as required by the Government Code to provide information to the public concerning collections and expenditures of Development Impact Fees (AB 1600 Fees). As long as the City maintains these fees, this annual review will be required.

Update of Capital Improvement Plan: Pursuant to the provisions of Government Code Section 66002(b), the capital improvement plan adopted by the City by Resolution 2615 approving the Development Impact Fee Study shall be annually updated at a noticed public hearing.

Discussion:

Council made findings as follows:

1. There is a reasonable relationship between the need for the described public facilities and the impacts of the various types of development, and,

2. there is a reasonable relationship between the fees use and the type of development for which the fee is charged, and

3. the cost estimates set forth in the plans are reasonable cost estimates for constructing these facilities, and that the fees to be generated by new development will not exceed the total of these costs.

The attached Resolution reaffirms these findings.
• Since the last annual report submitted to and approved by City Council on December 20, 2022.
• Changes to the capital improvements plan are noted in the report, particular to the needs of the water and wastewater systems and fire capital needs. • Neither General Plan designations nor growth projections in the City have materially changed in the last year; however, the City is in the process of updating its general plan and expects significant growth over the next 20 years to be addressed as a horizon issue.
• The remainder of the public facilities identified in the Development Impact Fee Report are still required to serve the needs which will be created by new development in the City.
• A relationship between the need for such public facilities, the amount of fees necessary to fund development of such facilities, and the impacts of development for which the fees are charged has remained unchanged from when these programs were adopted.

Yreka City Council Meeting November 21, 2023 75 of 99
• There have been duly authorized index adjustments of the cost of the public improvements and the fee amounts made pursuant to YMC Section 11.23.180. • Gov Code Section 66006(b), which requires the Annual Review report of AB 1600 fees be made within 180 days after the last day of each fiscal year and that it be reviewed by the City Council at the next regularly scheduled public meeting not less than 15 days after the information is made available to the public. The update of the capital improvement plan can be by resolution, but must occur at a noticed public hearing (one newspaper publication of the notice 10 days prior to the public hearing.) Gov. Code Section 66002. The update of the capital improvement plan and approval of the DIF fees report can occur at the same time.

Legal notices were published for public hearing on Wednesday November 1, 2023, in the Siskiyou Daily News for the Capital Improvement Plan review update.

Financial:
• Collection of Development Impact Fees provides revenue necessary for the City ultimately to fund the construction of the public improvements contained in the City’s adopted Capital Improvement Plan.
• Interfund transfers between fee accounts may be made during the next review period for the purposes of funding the construction and or debt servicing of the improvements discussed in this report.
• Discussion and direction to staff topics bring back to the Council at a future meeting several horizon issues related to the expected growth, updates to the general plan, the development and update impact fees for planning, stormwater, streets, and facilities.

ATTACHMENTS:

Attachment 1: Original AB 1600 Development Fee Project Improvements by Impact; Attachment 2: Description of AB 1600 Development Fee Types; Attachment 3: Schedule of AB 1600 Development Fee Collections and Disbursements
Attachment 4: Resolution Of The City Council Of The City Of Yreka Updating The City’s Capital Improvement Plan And Development Impact Fee Program.

Yreka City Council Meeting November 21, 2023 76 of 99
• There have been duly authorized index adjustments of the cost of the public improvements and the fee amounts made pursuant to YMC Section 11.23.180. • Gov Code Section 66006(b), which requires the Annual Review report of AB 1600 fees be made within 180 days after the last day of each fiscal year and that it be reviewed by the City Council at the next regularly scheduled public meeting not less than 15 days after the information is made available to the public. The update of the capital improvement plan can be by resolution, but must occur at a noticed public hearing (one newspaper publication of the notice 10 days prior to the public hearing.) Gov. Code Section 66002. The update of the capital improvement plan and approval of the DIF fees report can occur at the same time.

Legal notices were published for public hearing on Wednesday November 1, 2023, in the Siskiyou Daily News for the Capital Improvement Plan review update.

ATTACHMENTS:

Yreka City Council Meeting November 21, 2023 77 of 99
Attachment 1
City of Yreka
Original Schedule of Developer Impact Fee Improvements by Impact 2006 Original Fees*
Fee Per
Unit/Due 2023 Fees

4.1 City Buildings $792 $1,350

4.2 Park Facilities $1,821 $3,104

4.3 Police Department $683 $1,164

4.4 Fire Department $35
Amended to $2.03 sq ft in 2023 (2)

4.5 Storm Drainage $99 $169

4.6 Street Improvements $539 $919

4.7 Wastewater System $1,486 $9,280 (1)

4.8 Water System $5,132 $4,190 (1)
Totals $10,587 $20,176
(1) Reflect PACE Engineering's analysis of DIF for Water & Waster Systems in 2022 (2) Reflects PFG Fire DIF Study February 2023
Item Sq. Ft. $ per Sq. Ft Original Total
Expanded City Offices 2,000 $200 $400,000 $682,000
Expanded Public Works Building 2,000 $200 $400,000 $682,000 $800,000 $1,364,000
Org. Cost Curr. Cost
Acquisition (1) 5 acres $300,000 $511,500
Right of Way Improvements
Curb, Gutter, Sidewalk 467 lineal ft. $21,015 $35,831
Parking Lane, One Travel Lane -- 217,800 square ft. $871,200 $1,485,396 Landscaping 217,800 square ft. $217,800 $371,349
Irrigation 217,800 square ft. $217,800 $371,349
Parking Area 15,000 square ft. $60,000 $102,300
Restrooms 1 each $150,000 $255,750
Play Equipment 1 each $45,000 $76,725
Ball Field 1 each $25,000 $42,625
Soccer Field 1 each $10,000 $17,050
Benches/Bike Racks 6 each $3,000 $5,115
Garbage Cans 6 each $1,200 $2,046
Lighting (security) 6 each $9,000 $15,345
Sidewalks/Paths (miscellaneous) 140 lineal ft. $3,500 $5,968 Total $1,934,515 $3,298,348
(1) Acquisition of parcel on West street to "square" out Miner Street Park $81,114 (prorated to growth) Item Unit
* Original Fee does not include annual ENR CCCI, indexed cost reflects ENR cost escalation since 2006.

Table 4.1-1
City Buildings
Table 4.2-1
Basic Neighborhood Park Average Cost Estimate
Yreka City Council Meeting November 21, 2023 78 of 99
Attachment 1
continued
Table 4.3‐1
Police Department Needs (in progress 0 see note below) Org. Study Current Item Sq. Ft. $ per Sq. Ft.

Expanded Police Blding + Parking Area 2760 200 $552,000 Secure outdoor area at $50 per sq. ft. 2760 50 $138,000 New Police Building (Fairlane ‐ 40 yr Debt Servicing 2019) $1,176,450 Total $690,000 $1,176,450
Table 4.4‐1
Fire Department Needs Original Current
Item
Fire Services Report (Operations and Facilities) $35,000 Development Impact Study update (finalized Feb 2023) $7,500 2023 Pacific Finance Group Impact Fee Study (suppl. 4) $2.03sq ft $786,075 $786,075 Total $35,000 $793,575 $786,075
*Square footage from growth is estimated to be 394,586, sq ft for a combined sq ft citywide of 8,500,064, or 4.64% ($786,075) of anticipated fire improvements of $16,933,400 should be covered by growth.

Storm Drainage Needs 4.5 Original Current
Item Total
Master Planning for Growth $ 100,000 $ 170,500 Total $100,000 170,500 $
*In process, City has entered into an agreement with NEC for master planning report.

Table 4.6‐1
Intersection Improvements
Original Current
Traffic Signal SR 3 & SR 263 $225,000 $383,625
Traffic Signal Upgrade at SR 3 & Moonlit Oaks $90,000 $153,450 Additional Backhoe (acquired, non DIF funding 2008‐09) $80,000 Intersection Improvements at Miner and Oregon $150,000 $255,750 Total $545,000 $792,825
Total
Totals
Total
The City has acquired the building for a new Police Station. Current and future DIF fees collected will be applied to the debt servicing reserves for facility reconstruction completion expected in 2018‐19.

Yreka City Council Meeting November 21, 2023 79 of 99
Attachment 1
continued
Table 4.7‐2
Wastewater System Improvements
Ultimate Original Current
Vacuum Truck (acquired 2009‐10) $450,000
Office At Plant w/ secure storage $400,000 $682,000
Collection System Upgrades (completed)* $829,000 $554,000 2022 PACE Engineering Development Impact Fee Study (suppl. 3) $3,767,000 $4,083,428 (1) Totals $829,000 $5,171,000 $4,765,428
Table 4.8‐2
Water System Improvements*
Original Current
New Filter Control Panel (USDA COP 2010 completed) $75,000 Additional Booster Pump (USDA COP2010 completed) $170,000 Stage 1 Water Treatment Plant Booster Pump Station (USDA COP2010) $1,100,000 Add Two Filters to Water Treatment Plant (USDA COP2010 completed) $600,000 Zone 2 ‐ 2.0 MG Storage Tank (USDA COP 2010 completed) $1,660,000 Zone 1 Supply Improvements from Foothill Dr. (USDA COP2010 complete $662,000 Upgrade State Street Pumps (Improvement made 2009‐10, not DIF fundi $63,000 Replacement Main in Hwy 3 $560,000
Replacement Main from Deer Creek Way to Main $144,000 TBD Alternate Water Source Study $150,000 $250,000
2022 PACE Engineering Development Impact Fee Study (supplemental 2) $8,086,000 $8,765,224 (1) $5,121,000 $250,000
2023 ENR SF Bay Area CCI Growth 8.4%
Total
General Plan Growth
Totals
General Plan Growth
Totals
* Most of the original improvements listed above are being financed by a loan from USDA Certificate of Participation 2010, Water System Improvements Project. Over time that portion attributable to developer fees based on actual costs will be paid for debt servicing on the loan over the next 40 years, in 2013‐14 fees collected were transferred to the debt servicing account (Fund 72).

In 2022, City commenced construction for Water Main replacements relating to Highway 3 improvements, and will be utilizing both grant and fee revenues sources for improvements. Project cost is approximately $4.5 million.
* Collection System Upgrades are being financed by a loan from USDA Certificate of Participation 2012, Wastewater System Improvements Project. Over time that portion attributable to developer fees based on actual costs will be paid for debt servicing on the loan over the next 40 years.

Yreka City Council Meeting November 21, 2023 80 of 99
Base Fee
$2,514.58
Base rate is multiplied by dwelling unit
B. Citywide Streets Impact Fee $918.89
C. Park and Recreation Impact Fee $3,104.46
D. Storm Drainage Impact Fee $168.79
sq. ft.

Multi-family residence sq. ft.

E. Fire Mitigation Fee

2. Water Meter Size or if no meter, water service pipe size:

F. Water System Impact Fee * $9,271.89
Base fee multiplied by household equivalent ratio from chart.

G. Wastewater Collection System Impact Fee * $4,189.52 A. Public Facilities Base fee multiplied by household equivalent ratio from chart. B. Streets C. Park and Recreation
D. Storm Drainage
H. Wastewater Treatment System Impact Fee* $6,439.61
Base fee multiplied by household equivalent ratio from chart. 1 1
1 1.5

2.5 5
8 16
25 50
80 Revised 06/21/2023
Impact fees are payable prior to issuance of building permit, encroachment permit, mobile home permit & installation of water meter. Customer is subject to water meter device cost if installed by city. $2.03 per sq. ft.
8 inch
* Water and Wastewater Fees (E. F. & G. above) - Multiply the base fee for each premises times the Household Equivalent ratio (from chart below) based on the meter size, or if no meter is installed the water service pipe size.

G. Wastewater *
H. Wastewater Treatment*
F. Water *
E. Fire Mitigation Fee

3. Fees Due:

Permit Application Date:
5/8"
3/4" single-family residential home with approved
fire sprinkler system
1" single-family residential home with approved fire
sprinkler system
6 inch
3/4"
1 inch

1.5 inch
2 inch
3 inch
4 inch
Name of Applicant:

SINGLE FAMILY & MULTIPLE FAMILY DWELLING WORKSHEET
City of Yreka Municipal Utility Services, Impact, & Connection Fees Property Address: _____________________________________ Base rate is multiplied by dwelling unit
Base rate is multiplied by dwelling unit
a. Alteration/renovation/expansion of residential building where no additional dwelling units are created.
b. Expansion of commercial/industrial structure which is less than 50% of the square footage of the existing structures.

Assesor's Parcel Number: ________________________________________ A. Public Facilities Impact Fee
f. Fees pursuant to an Encroachment Permit will be charged for applicable connections only.

Exemptions (See YMC 11.23.130)
c. Accessory building with no extra vehicle trips.
d. Replacement structure, same size, within 3 years.
e. Replacement mobile home.

Fee Calculation Worksheet
Base rate is multiplied by dwelling unit
Base rate is multiplied by square footage of dwelling unit # of units
# of units
Single family residence

1. List the building size (sq. ft.) and # of units next to the type of proposed structure:

Signature:
see household equivalent ratio chart
Amount Due (Total of A-H)
Yreka City Council Meeting November 21, 2023 81 of 99
Base Fee
$2,514.58
B. Citywide Streets Impact Fee $918.89
C. Storm Drainage Impact Fee $168.79

1. List the building size (sq. ft.) and # of units next to the type of proposed structure:

D. Fire Mitigation Fee sq. ft.
sq. ft.
sq. ft.

E. Water System Impact Fee * $9,271.89 2. Water Meter Size or if no meter, water service pipe size:

Base fee multiplied by household equivalent ratio from chart.

F. Wastewater Collection System Impact Fee * $4,189.52
Base fee multiplied by household equivalent ratio from chart.

A. Public Facilities
B. Streets
C. Storm Drainage
G. Wastewater Treatment System Impact Fee* $6,439.61 D. Fire Mitigation Fee Base fee multiplied by household equivalent ratio from chart. 1 1
1 1.5

2.5 5
8 16
25 50
80 Revised 06/21/2023
for applicable connections only.
where no additional dwelling units are created.
b. Expansion of commercial/industrial structure which is less than than 50% of the square footage of the existing structures. f. Fees pursuant to an Encroachment Permit will be charged for c. Accessory building with no extra vehicle trips.
d. Replacement structure, same size, within 3 years.
e. Replacement mobile home.
# of units
# of units
Commercial/Retail
Name of Applicant:

Signature:
* Water and Wastewater Fees (E. F. & G. above) - Multiply the base fee for each premises times the Household Equivalent ratio (from chart below) based on the meter size, or if no meter is installed the water service pipe size.

G. Wastewater Treatment *
Office/General
F. Wastewater*
E. Water*
Base rate is multiplied by square footage of unit
5/8"
3/4" single-family residential home with approved fire
sprinkler system
1" single-family residential home with approved fire
sprinkler system
6 inch
3/4"
1 inch

1.5 inch
2 inch
3 inch
4 inch
Impact fees are payable prior to issuance of building permit, encroachment permit, mobile home permit & installation of water meter. Customer is subject to water meter device cost if installed by city. 8 inch

COMMERCIAL, OFFICE/GENERAL & INDUSTRIAL WORKSHEET
City of Yreka Municipal Utility Services, Impact, & Connection Fees Property Address: _____________________________________ Base rate for Commercial/Office is per 2,500 sq. ft.

Assessor's Parcel Number: ________________________________________ A. Public Facilities Impact Fee
Base rate for Commercial/Office/Industrial is per 1,000 sq. ft. Exemptions (See YMC 11.23.130) Fee Calculation Worksheet
Base rate for Industrial is per 5,000 sq. ft.
a. Alteration/renovation/expansion of residential building Base rate for Commercial/Office/Industrial is multiplied by unit $2.03 per sq. ft.

Amount Due (Total of A-G)
Industrial # of units
Permit Application Date:

3. Fees Due:
see household equivalent ratio chart
Yreka City Council Meeting November 21, 2023 82 of 99
Attachment 3
City of Yreka
Utility Services, Impact and Connection Fees
Annual Report
FISCAL YEAR TO DATE 2022‐2023
Fee Type
Beginning
Balance
7/1/22
Fees
Collected
Fees
Expended
Deferred
Interest
Investment
Earnings
Ending Balance
6/30/23
Public Facilities 0.00                          4,697.34         4,697.34 0.00 (1) Streets        90,486.42        1,676.76 92,163.18
Storm Drains          6,806.00           308.00 7,114.00 (2) Parks and Recreation 122,385.20              5,664.72 128,049.92 Fire ‐ ‐ (5)
Water                 (0.00)     15,964.72       15,964.72 (0.00) (3) Sewer                 (0.00)        4,622.66         4,622.66 (0.00) (4) 219,677.62     32,934.20        ‐                 25,284.72 ‐ 227,327.10 (1) Applied to growth related improvements of Police Station Facilities Project (2019 USDA COP). (2) Applied to growth related improvements to Stormwater Master Plan Update Project (in process). (3) Applied to growth related improvements of FC Water ImprovementProject (2010 USDA COP). (4) Applied to growth related improvements of Wastewater Improvement Project (2012 USDA COP). (5) Applied to growth related improvements of Fire Facilities Project (2023) (Planning & Design Phase).

Yreka City Council Meeting November 21, 2023 83 of 99
RESOLUTION NO. 2023-53

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA

APPROVING THE DEVELOPMENT IMPACT FEE REPORT

AND UPDATING THE CITY'S CAPITAL IMPROVEMENT PLAN

AND DEVELOPMENT IMPACT FEE PROGRAM
WHEREAS, the City Council adopted Ordinance No. 790 and 799, which implemented the City's Development Impact Fee program, and, which established the level of Development Impact Fees; and
WHEREAS, annually the City Council approves a Capital Improvement Plan for the construction of public facilities in the City as described in the City's Developer Impact Fee Study last updated December 21, 2022 Resolution 2022-58; WHEREAS, Yreka Municipal Code Section 11.23.170 provides for an annual review of the Capital Improvement Plan, and provides for an annual review of both the City's Development Impact Fee Program and the balance of funds currently maintained in the City's various Development Impact Fee accounts; and
WHEREAS, the documents reflecting the balance in each Development Impact Fee account, the fee, interest, and income and the amount of expenditure by public facility, and the amount of refunds made for the fiscal year have been available for public review as required by law; and
WHEREAS, the City desires to review the annual reports regarding these Development Impact Fees; and
WHEREAS, the description of each such fee, its amount and various information required by Gov. Code 66006(b)(1) is attached to the staff report associated with this Resolution and is hereby incorporated by reference, as required by Gov. Code §66006(b)(1); and WHEREAS, Gov. Code §66002(b) of the Mitigation Fee Act requires the local agency to update the Capital Improvement Program annually, in order to show the improvements to be funded by the program; and
WHEREAS, pursuant to Gov. Code §§66002(b) and 65090, the Yreka City Council noticed a public hearing regarding the updating of the City of Yreka Capital Improvement Program and approving the Annual Development Impact Fee to be held on December 20, 2022 and all interested persons were heard; and
WHEREAS, the annual reports have been made available to the public at least 15 days prior to the public meeting, and a Notice of Hearing was published at least ten days prior to the public hearing in a newspaper of general circulation; and WHEREAS, the City Council has reviewed the annual report; and WHEREAS, the City of Yreka rolling five-year Capital Improvement Program indicates the approximate location, size, time of availability and cost estimates for all facilities and improvements that will be financed with those fees that are levied by the City on new developments in order to fund public capital improvements necessitated by such development.

Yreka City Council Meeting November 21, 2023 84 of 99
NOW, THEREFORE, it is hereby resolved by the City Council of the City of Yreka, California, as follows:

The City Council has received and reviewed the City's Capital Improvement Plan as set forth in the Developer Impact Fee Study with the additions identified and attached to this Resolution and made a part hereof by this reference is it hereby updated.

The City Council has received, reviewed and accepts the annual reports containing the information required by Gov. Code §66606(b)(1).

The City Manager is hereby authorized to initiate any loans between fee accounts that may be necessary during the next review period for the purpose of funding the construction of the improvements discussed in the Annual Review Report.

Adopted this 21st day of November 2023, by the following called vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Corey Middleton,
Mayor Attest:

Cyndy Prohaska, City
Clerk
Yreka City Council Meeting November 21, 2023 85 of 99

NOTICE OF PUBLIC HEARING
AND

NOTICE OF AVAILABILITY OF

ANNUAL DEVELOPMENT IMPACT FEE REVIEW

AND UPDATE OF CAPITAL IMPROVEMENT PLAN REPORT
The Yreka City Council will hold a public hearing at 6:30 p.m., Tuesday, November 21, 2023, in the Council Chambers, 701 Fourth Street, Yreka, California, and by teleconference Conference call in Number: 669-900-6833 (Toll-Free 888 788 0099) Meeting ID# 619-495- 7056 on the following matter:

RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF YREKA

APPROVING THE ANNUAL DEVELOPMENT IMPACT FEE REPORT
AND UPDATING THE CITY’S CAPITAL IMPROVEMENT PLAN AND

DEVELOPMENT IMPACT FEE PROGRAM
The Annual Development Impact Fee Review and Update of Capital Improvement Plan Report is on file in City Hall for public review. All interested persons are invited to attend the meeting and to participate in the public hearing or deliver written comments regarding the Report on or before 4:00 PM, Tuesday, November 21, 2023, to the following address:

YREKA CITY COUNCIL, 701 Fourth Street, Yreka, CA 96097.

Pursuant to Government Code Section 66002 a local agency which levies a fee subject to Section 66001 of the Government Code shall annual update the capital improvement plan by resolution of the local agency adopted at a noticed public hearing. Pursuant to Government Code Section 66006, a local agency which levies a fee subject to Section 66001 shall within 180 days after the last day of each fiscal year make available to the public a report providing the information set forth in Section 66006(b)(1) and shall review that information at the next regularly scheduled public hearing not less than 15 days after the information has been made available to the public.

Emily Aldrich
Finance Director
City of Yreka
October 24, 2023
Yreka City Council Meeting November 21, 2023 86 of 99
Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
Duane Kegg, Councilmember
Jason Ledbetter, City Manager
Rhetta Hogan, Asst. City Manager and Clerk
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Mark Gilman, Police Chief
Andrew Jared, City Attorney
Jerry Lemos, Fire Chief
Juliana Lucchesi, Comm. Dev. Director

YREKA CITY COUNCIL
Public Review Documents For November 21, 2023
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA Phone 530-841-2386, Facsimile 530-842-4836, email: [email protected] Regular Meetings of the Yreka City Council are held the 1st and 3rd Tuesday of every month.

The full agenda packet can be found on the City’s website: www.ci.yreka.ca.us/AgendaCenter • Attached are documents submitted to the City Clerk to be considered as part of the public review documents that have been received prior to the meeting. • Additional documents received 72-hours prior to the meeting, will be distributed to you at the meeting and included in the public document binder (with the agenda) at City Hall, and available in Chambers the evening of the meeting.
• Documents not submitted for forwarded to the City Clerk for inclusion as public record documents are not known, and therefore not included.

Yreka City Council Meeting November 21, 2023 87 of 99
From: jack phillips
To: Jason Ledbetter; Rhetta Hogan
Subject: Fw: Connection Capacity Charges
Date: Wednesday, November 15, 2023 10:24:37 AM
Attachments: Here are the Facts Connection Fees NEW.pdf From: jack phillips <[email protected]>
Sent: Saturday, November 4, 2023 12:16 PM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]> Cc: jack phillips <[email protected]>
Subject: Connection Capacity Charges
Dear Yreka City Council,
I hope this information will help you make intelligent decisions. I Sent this information to the Mt Shasta City Council in 2019. After many years of no development, the City of Mt Shasta finally cut their development fees by more than 50% to encourage development. The fee reduction worked, and new homes are being built.

You can see in Table 10 of the Yreka Pace Engineering report, under Revenue, a "Sewer Set-up Fee" is increasing from $8,475 to $10,000. The high "Connection Capacity Charges" are meant to stop contractors from building affordable housing.

Thank you for you due diligence,
Jack
From: jack phillips
Sent: Wednesday, February 20, 2019 10:23 AM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>
Subject: RE: Connection Capacity Charges
From: Jack Phillips 2-19-18
Dear City Council Members,
Many of you know that I have attended City Council meeting for the past nine years asking the City to stop violating California Law with their illegal sewer and water connection capacity charges. The illegal charges go back more than 18 years when the city imposed new connection capacity charges adhering to Proposition 218 when they were supposed to follow California Government Code Section 66013 of the “Mitigation Fee Act.” This error was made by the Cities Consulting Engineer and Attorney and was never corrected. So the same error was made again around 2008 when the City increased their sewer connection fees to around Yreka City Council Meeting November 21, 2023 88 of 99
$12,000 and their water connection fees to around $10,000 adhering to Proposition 218. Plus the City added a Development Impact Fee. When I moved here in 2009, I was going to buy a vacant lot on Pine St. for 70K and build a duplex. The City wanted $64,000 for sewer, water and Development Fess ($32,000 x 2 = $64,000) Only an Idiot would pay these illegal charges so the real-estate purchase never happened.

To understand why the Cities connection fees are illegal, you have to look inside the Engineering Report to see what the Connection Capacity Charge is paying for. Half the connection capacity charge was paying for future maintenance and replacement of existing public facilities which is a violation of California law. Half of the sewer connection capacity charge was imposed to pay for replacing the Cities sewer pipes and waste water treatment plant. The hope in imposing very high illegal connection fees was that new customers (Rich People from San Francisco) would pay the high charges and the City wouldn’t have to raise their existing customers monthly “user fees” to replace the aging sewer and water systems.

Unfortunately, rich people are rich because they are not stupid. If the City would have followed the law and raised monthly “user fees” 18 years ago, we wouldn’t be in this mess today.

I read the article in the Mt Shasta Herald and it almost made me ill. For the highly paid City Manager to sit there and allow the council to discuss paying for maintenance and replacement of existing public facilities with money collected from connection fees is disgusting. The City Manager knows darn well that these charges are violation of California Law because a City can’t charge customers twice for the same service provided because that would be accounting fraud. Connection charges have never been allowed to pay for maintenance and replacement of existing public facilities.

According to the article, the City Manager said that the last City Council “Kicked the can down the road.” This statement is in fact just more nonsense. The last City Council increased sewer “user fees” dramatically from around $23 per month to around $66 per month to be phased in over the next few years. The City imposed the “user fee” increases to pay for the replacement of the aging sewer pipes and waste water treatment plant. The “user fee” increases were imposed following Proposition 218 and partially adhered to the stated law. To be compliant with Prop 218, the City should have increased “user fees” to pay for Assessments imposed with a divided portion amount due and a duration of payments so the increased charges do not go on Forever and become a TAX. Again, if the City would have followed the law and raised monthly “user fees” 18 years ago, we wouldn’t be in this mess today. A small increase 18 years ago would have covered most of the necessary cost needed today to replace the aging sewer and water systems.

So here I am again asking the City Council to permanently reduce their Sewer and water connection capacity charges by 75% by simply adhering to the correct California law which is California Government Code Section 66013 of the “Mitigation Fee Act.” A legal Connection Capacity Charge is for material and labor to make the connection plus a Capacity Charge for the Expansion of public facilities directly related to the development project or existing structure being added to the system and nothing more.

Connection Charges have never been allowed to pay for maintenance and replacement of existing public facilities.

Attached is a fact sheet on connection capacity charges. Please read California Law for your own understanding. The Cities paid consultants rarely give correct information regarding these Yreka City Council Meeting November 21, 2023 89 of 99
issues.

Sincerely,
Jack Phillips
Yreka City Council Meeting November 21, 2023 90 of 99
From: jack phillips
To: Jason Ledbetter; Rhetta Hogan
Subject: Fw: Sewer User Fees and Assessments
Date: Wednesday, November 15, 2023 10:22:24 AM
Attachments: Here are the Facts Assessments NEW.pdf
Here are the Facts Connection Fees NEW.pdf
From: jack phillips <[email protected]>
Sent: Tuesday, October 31, 2023 4:07 PM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]> Cc: jack phillips <[email protected]>
Subject: Sewer User Fees and Assessments
Dear Yreka City Council. I hope this information will help you make intelligent decisions.

Sent to Mt Shasta City Council in 2017.

From: jack phillips <[email protected]>
Sent: Thursday, March 2, 2017 12:02 PM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]> Subject: Sewer User Fees and Assessments
Dear City Council Members,
I have addressed the City Council many times over the past 6 years regarding the Cities Sewer and Water Connection Fees and Assessments imposed for Capital Cost of Public Facilities. At this point, I don't have much hope in correcting what's wrong with our government. Most people have simply given up. The "process of government" is completely broken because our government while following the "process of law" is completely unable to adhere to the "Rule of Law." The Government will follow the law and hire a Consulting Engineer to do a rate study (PACE) however, the government refuses to ensure their Engineer adheres to the "Rule of Law" when recommending the Cities Fees and Assessments. The biggest problem is the Attorney's that have sat there for years allowing/creating the illegal charges and now refuse to make the corrections. Unfortunately, Attorney's care more about who's liable for what's been done wrong than being diligent and doing what's right. Please be diligent when imposing debt upon the property owners of Mt Shasta. No one is ever held liable for a job done right.

User Fees pay for Assessments imposed for "daily maintenance and operations expenses" and for Assessments imposed Capital Cost of public facilities.

User Fees that pay for Assessments imposed for Capital Cost, must be imposed with a duration of payments so the rate increase does not become a TAX that goes on forever. This is Yreka City Council Meeting November 21, 2023 91 of 99
clearly stated in Proposition 218. Revisiting the rates in 5 years is nonsense.

Assessments imposed for Capital Cost to fund major replacement and expansion of sewer and water facilities must be calculated separately from "daily maintenance and operation expenses" and must be stated separately on the customer’s user fee statement. For example, the Assessment imposed for the WWTP should be stated separately from the Assessment imposed for Sewer Pipe Replacement. If the City continues to impose debt upon their property owners without keeping the charges separated on their user fee statements, then in the very near future, property owners will be paying $300 dollar per month user fees and no one will even know what they are paying for or why.

Here are a few documents for more information.

Thank you for your due diligence regarding this issue,
Sincerely,
Jack Phillips
Yreka City Council Meeting November 21, 2023 92 of 99
From: jack phillips
To: Jason Ledbetter; Rhetta Hogan
Subject: Fw: User Fee increases to pay off Assessments
Date: Wednesday, November 15, 2023 10:23:35 AM
Attachments: User Fee increases to pay off Assessments.pdf From: jack phillips <[email protected]>
Sent: Thursday, November 2, 2023 9:14 AM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]> Cc: jack phillips <[email protected]>
Subject: User Fee increases to pay off Assessments
Dear Yreka City Council. I hope this information will help you make intelligent decisions.

Sent to Mt Shasta City Council in 2017.

From: jack phillips <[email protected]>
Sent: Monday, March 13, 2017 10:41 AM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>
Subject: User Fee increases to pay off Assessments
Yreka City Council Meeting November 21, 2023 93 of 99
Here are the Facts Assessments NEW
From: Walter J. Phillips (Re: Sewer and Water Assessments) Date: 6-26-15 Email: [email protected] (added onto monthly Sewer and Water User Fee statements) 1n 1997, Proposition 218 added Article 13C and D onto the California Constitution to protect the public from the abuse of Government.

All a property owner owes for public facilities is their divided share of cost and nothing more. So the amount due from each property owner will always be a Math Equation.

When reading ARTICLE X111 D SEC. 4. Procedures and requirements for All Assessments (below), notice that Assessments imposed for “daily maintenance and operations expenses” are separate from Assessments imposed for capital cost of public facilities. These are two very separate charges and must be stated separately on the customer’s monthly User Fee statement.

ARTICLE X111 D SEC. 4. Procedures and requirements for All Assessments. (a) An agency which proposes to levy an assessment shall identify all parcels which have a special benefit conferred upon them and upon which an assessment will be imposed.

The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of the public improvement, the maintenance and operations expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and an agency shall separate the general benefits form the special benefits conferred on a parcel. Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. (b) All assessments shall be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California. (c) The amount of the proposed assessment for each identified parcel shall be calculated and the recorded owner of each parcel shall be given written notice by mail of the proposed assessment, the total amount thereof chargeable to the entire district, the amount chargeable to the owner’s particular parcel, the duration of the payments, the reason for the assessment, and the basis on which the amount of the proposed assessment was calculated, together with the date, time, and location of a public hearing on the proposed assessment. Each notice shall also include, in a conspicuous place thereon, a summary of procedures applicable to the completion, return, and tabulation of the ballots required pursuant to subdivision (d), including a disclosure statement that the existence of a majority protest, as defined in subdivision (e), will result in the assessment not being imposed.

Here’s the definition of terms used in Article 13 D SEC. 2 of the California Constitution. (c) “Capital cost” means the cost of acquisition, installation, construction, reconstruction, or replacement of a permanent public improvement by an agency.

Yreka City Council Meeting November 21, 2023 94 of 99
(b) “Assessments” means any levy or charge upon real property by an agency for a special benefit conferred upon the real property. “Assessments” includes, but is not limited to, “special assessments,” “benefit assessments,” “maintenance assessments” and “special assessment tax.”
(f) “Maintenance and operation expenses” means the cost of rent, repair, replacement and rehabilitation, fuel, power, electrical current, care, and supervision necessary to properly operate and maintain a permanent public improvement.” Monthly Sewer User Fees = Use of water by volume and flow into the wastewater treatment facility + Assessments for Daily maintenance and operations expenses + Assessments for capital cost related to future maintenance, replacement and expansion of existing public facilities and new public facilities to be constructed.

Here’s a fact: When a City or a Community Service District adds an Assessment onto a monthly user fee statement for capital cost related to future maintenance, replacement and expansion of existing public facilities and new public facilities to be constructed, the Assessment imposed upon the property has a divided portion amount due and a duration of payments. When the property owner has completed paying off their divided portion amount due, the Assessment payments for capital cost must be removed from their monthly Sewer and Water User Fee statements.

User Fees pay for “daily maintenance and operations expenses” Assessments and are imposed with a divided portion amount due and a duration of payments of 12 months or one year. Assessments added on for capital cost however, are usually imposed with a divided portion amount due and a duration of payments of around 15 years.

User Fees pay for “daily maintenance and operations expense” Assessments, and payments go on forever. However, Assessment payments added on to pay for capital cost do NOT go on forever and must be removed when the property owner finishes paying off their divided portion amount due. There are many years in the life of a Public Utility when charges for capital cost are simply not necessary.

Did you know that in Washington State a Capacity Charge is an Assessment? In Washington State, Assessments for capital cost are attached to properties and paid in monthly payments for a 15 year billing period. If the home is sold during the billing period, the total amount due at the time of sell can be paid in escrow so the buyers won’t be burdened with the monthly Assessment payments.

The new game in California is for local governments to add Assessments for capital cost for future maintenance, replacement and expansion of existing public facilities and new public facilities to be constructed onto monthly sewer and water user fee statements with no duration of payments and collect billions of dollars that far exceed the cost to provide the service. Local governments prefer to mix all the charges together so the money collected can be used for “maintenance and operations expenses” which includes employee pay and retirement pension benefits. If the charges are stated separately on the customer’s monthly User Fee statement, then the Assessments imposed for capital cost would have to be allocated into a separate capital infrastructure account and funds collected could only be used for the purpose they were imposed.

Yreka City Council Meeting November 21, 2023 95 of 99
Here are the Facts Connection Fees NEW
From: Walter J. Phillips (Re: What can a City or CSD Legally Charge for a Connection Fee) Email: [email protected] Date: 6-26-15
A City or Community Service District cannot charge a connection fee or lump sum capacity charge for maintenance and operations expenses of existing public facilities. It is a violation of California law to charge a connection fee or lump sum capacity charge for capital cost related to future maintenance and replacement of existing public facilities infrastructure. Connection fees and lump sum capacity charges for “maintenance or operations expenses” of public facilities have never been allowed when there is already an assessment district in place to maintain public facilities.

So what can a City or CSD legally charge?
A City or CSD can charge Connection Fee that shall not exceed the cost of material and labor to make the actual connection as stated in California Government Code Section 66013 (b) of “The Mitigation Fee Act,”

Section 66013 (b) Definitions as used in this section:
(1) “Sewer connection” means the connection of a structure or project to a public sewer system.”
(5) “Fee” means a fee for the physical facilities necessary to make a water connection or sewer connection, including, but not limited to, meter boxes, and pipe lines from the structure or project to a water distribution line or sewer main, and that does not exceed the estimated reasonable cost of labor and materials for installation of those facilities.”
PLUS
A City or CSD can charge a lump sum Capacity Charge or Development Impact Fee for the expansion of existing public facilities or for new public facilities to be constructed, for the benefit of, and that are directly related to the development project or existing home being added to the system. The property owner can be charged the divided portion amount due for construction of these facilities.

In the rare case when a development project being added to the system exacerbates existing public facilities, a City or CSD can charge a lump sum Capacity Charge or Development Impact Fee for the replacement of existing public facilities to expand existing public facilities to accommodate the new or existing development project being added to the system. This is very rare because systems are originally installed to accommodate future expansion.

Yreka City Council Meeting November 21, 2023 96 of 99
Additional Information
One of the biggest mistakes the LSCSD made was they imposed their Sewer Connection Fees following “Article 13D Section 6, Property Related Fees and Charges,” of the California Constitution which is part of Proposition 218, when they were supposed to follow California Government Code Section 66013 of the Mitigation Fee Act. So the LSCSD followed the wrong law from the start.

One of the first statements in SECTION 1 of Proposition 218 states that this section of law is not to be followed when imposing fees and charges as a condition of property development.

The first thing you read in ARTICLE XIII D of the California Constitution is as follows:
“SECTION 1. Application. Notwithstanding any other provision of the law, the provisions of this article shall apply to all assessments, fees and charges, whether imposed pursuant to state statute or local government charter authority. Nothing in this article or Article X111 C shall be construed to: (b) Affect existing laws relating to the imposition of fees or charges as a condition of property development” In the June 25, 2007 Notice of Public Hearing, the City of Mt. Shasta states they have mailed this notice in accordance with Section 6(a)(1) of Article X111 D of the California Constitution. In a 2009 Press Release the City states, “these fee increases are subject to a protest vote under Proposition 218 amending the California Constitution and if more than 50% of the customers submit written protests the fees cannot be implemented.” When the Lake Shastina Community Service District raised their sewer connection fees and monthly “user fees” they stated, “The procedures set forth in Section 6 of Article XIII D of the California State Constitution and Government Code Section 53753, pursuant to Proposition 218, have been followed by the District prior to adoption of this Ordinance.” The public notices mailed out to both communities and the information published suggested that both communities have followed Article X111 D of the California Constitution when increasing their connection fees and monthly sewer and water user fees and assessments.

Reading California Case law and the “League of California Cities Proposition 218 Implementation Guide,” the courts have ruled that a connection fee is not a property related fee because a connection fee is voluntary, “Richmond v. Shasta Community Service District, 2004.” So if a connection fee is not a property related fee then a connection fee cannot be imposed following “ARTICLE X111 D SEC. 6 Property Related Fees and Charges.”
Great, so which existing law was the LSCSD supposed to follow when imposing their sewer connection fees and charges?
California Government Code Section 66013 of “The Mitigation Fee Act,” Yreka City Council Meeting November 21, 2023 97 of 99
To: Mayor Kathy Morter Date: 3-13-17
City Council Person Barbara Wagner
City Council Person John Stackfleth
City Council Person Paul Engstrom
From: Jack Phillips, Mt Shasta Resident
Re: Sewer and Water User Fee increases to pay off Assessments imposed for Capital Cost of public facilities.

Dear City Council Members,
So here are our concerns, and why it’s imperative that the Engineer (Pace), must separate Assessment Charges for “daily maintenance and operations expenses” and Assessment Charges for Capital Cost of public facilities imposed upon the property owners. It’s imperative to separate the Assessment Charges imposed upon the property owners so that a direct connection can be made between the User Fee amount paid, and the Assessment amount imposed. Understand that when the City goes down a path of imposing enormous debt upon their property owners, the debt imposed must be paid off. Therefore, the debt the City is imposing upon their property owners has a sunset and does not go on forever. The Engineer has made it clear that the debt the City is imposing upon their property owners will be paid for with increased User Fees. However, the City Council needs to make it clear to the Engineer, that the debt imposed upon the property owners will be paid off with the increased User Fees.

Prop 218 clearly states that Assessment Charges must be imposed with a divided portion amount due and a duration of payments. For the City to be compliant with Prop 218, the Engineer must break down the Sewer and Water User Fee statement. The amount collected from User Fees must be divided up and allocated into the many different Assessments imposed for “daily maintenance and operations expenses” and for Capital Cost of the “Waste Water Treatment Plant WWTP”, “Sewer Pipe Replacement”, “Water Pipe Replacement”, etc. If monthly Sewer User Fees are $60 dollars per month for example, the statement could read Assessments imposed for “Daily maintenance and operations expenses $25 until 2018”, “WWTP $23 until 2032”, “Sewer Pipe Replacement $12 until 2032.” When Assessments imposed for the WWTP and Sewer Pipe Replacement are paid off in 2032, then those charges for Capital Cost must be removed from the monthly User Fee statement. Again, the Assessment imposed, the amount paid per month, and the expiration date can easily be stated on the front and back of the monthly City Services statement so customers and property owners know what they are paying for. User Fee charges to pay for “daily maintenance and operations expense” Assessments are imposed for 12 months or 1 year and continue forever.

If the City wants to be 100% compliant with Prop 218, then the information and calculations provided to the property owners in a written notice by mail are quite simple. The City of Mt Shasta has Approximately 2921 Equivalent Dwelling Units or EDU’s. For example, if the City imposes a 12 million dollar Sewer Assessment for the WWTP, then the calculation would be $12,000,000 divided by 2921 EDU’s divided by 180 months = $22.83 per month for 15 years. The City needs to state that the divided share of cost for the WWTP is approx. $4,108 per EDU, ($12,000,000 divided by 2921 EDU’s = $4,108).

These calculations are not Rocket Science.

Yreka City Council Meeting November 21, 2023 98 of 99
If the City Council follows the Engineer’s advice and simply pays for the WWTP and Sewer Pipe Replacement with increased User Fees, with no real connection to the charges imposed for Capital Cost, then in the very near future, all the money collected will be allocated into the “daily maintenance and operations expenses” account to fund ever increasing pay and early retirement pension benefits of government employees. In the end, Mt Shasta will look like San Bernardino, Vallejo, Stockton and every other Bankrupt City in California.

Please be diligent and responsible when imposing debt upon the property owners of Mt Shasta. An Assessment imposed for Capital Cost without a sunset or duration of payments will simply morph into a garden variety Tax to fund an ever increasing bloated government that the Citizens of Mt Shasta simply cannot afford.

By increasing User Fees with no direct connection to the Assessments imposed for Capital Cost, the Engineer is simply asking the public to TRUST the Government to do what’s right with their money. This is nonsense, there is no reason to blindly trust the government with the public’s money. The public has every Right to where their hard earned money is spent and when their debt will be paid off.

Remember, the 2nd largest Municipal Bankruptcy in US history was in Jefferson County Alabama and it began with an imposed charge for Sewer Pipe Replacement.

Thank you for your due diligence regarding this issue. We look forward to Pace Engineering and the City Council addressing our concerns at the March 27th City Council meeting.

Sincerely,
Jack Phillips
Yreka City Council Meeting November 21, 2023 99 of 99

Yreka City CouncilNovember 21, 2023

Yreka City Council
November 21, 2023