Agenda — Yreka City Council, December 19, 2023 (part 1 of 2)

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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 AGENDA
December 19, 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.

Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to AB 2449, remote public comment will not be accepted.

Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. to the City Clerk prior to the meeting or to attend the meeting in person." Written comments will be distributed to the Councilmembers but will not be read aloud at the meeting.

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.

Yreka Volunteer Fire Department, “Availability of Responders”, continued - Fire Chief Jerry Lemos

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.

This meeting is being livestreamed and can be viewed on cable YCTV Channel 4 or internet Siskiyou Media Council home to YCTV4 and MCTV15 - YouTube https://www.youtube.com/channel/UCzx2GSYFCrgE5przvnzitXQ December 19, 2023 Yreka City Council Agenda 1 of 177

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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:

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 November 27, 2023, through December 10, 2023. b. Approval of Minutes of the Regular Meeting held December 5, 2023. c. Approval of a $13,000 cash contribution from City of Yreka to Siskiyou Family YMCA for perimeter fencing at the Siskiyou Family YMCA facility, 350 N. Foothill, Yreka. d. Resolution 2023-55 Recognizing the City of Yreka’s 2024 Contribution to Employees’ Healthcare Costs Through the IRS Section 125 Cafeteria Plan.
e. Resolution 2023-56 Delegation of Authority to File and Make Decisions on Applications for Disability Retirement
f. Approval of contract with State of California, Department of Cannabis Control for $115,000 Retail Cannabis Licensing program grant.
g. Approval of Professional Services Agreement with SCI-CG for establishment of cannabis licensing program.

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

5. OLD BUSINESS:

Finance Director
a. Agenda Title: Second Reading of Ordinance No. 876 Regarding Proposed Water and Wastewater Utility Rate Increase As-Amended on December 5, 2023
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Second Reading 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. 2018-27 and Finding The Ordinance Exempt From CEQA”.

Recommended City Council Action: Motion to adopt Ordinance No. 876, As-Amended on December 5, 2023.

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: (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 the 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 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 December 19, 2023 Yreka City Council Agenda 3 of 177

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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 December 19, 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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Yreka Fire Department:

Availability of Responders
Continued
City Council Meeting
Tuesday December 19, 2023
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1990 – 41 Volunteers,
128 alarms, 3 alarms
annually per volunteer
2022 – 20 Volunteers,
2,025 alarms, 101
alarms annually per
volunteer
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What it would look like
if there were still 41
volunteers:
1990 – 3 alarms
annually per volunteer
2022 – 49 alarms
annually per volunteer
----------------------------
Again, in 2022, there
were 101 alarms per
volunteer, or an alarm
about every 3 days
per volunteer
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Understanding the Decline
No one answer fits all volunteers that have left, rather, it can be any one or a combination of the following and more:
• Job Commitments/Change in job
• Being a Volunteer Firefighter is another job
• Too many medical responses
• Non-emergency 911 responses
• Burn out
• Demands take me away from family with little to no monetary compensation
• I work all day and then have to respond at night
• Tired/fatigue
• So much training required on my own time
• Not as many employers proximate to the station
• Life changes
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What has changed since 1990?
• AB 1127 became codified in January 2000. It eliminated many of the immunities from civil and criminal liabilities formerly granted to government employees in cases involving violations of workplace safety standards. Local government officials now can face individual fines, prison, and civil lawsuits if they fail to provide a safe workplace. • SB 1207 became law January 2001. For purposes of Labor law, it considers Volunteer Firefighters to be “employees.” Enforcement was postponed until 2004.

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The rationale for any employer to comply is three-fold:
• Worker safety;
• Professional performance to recognized standards; and • Reduced exposure to liability.

The bottom line regarding Cal OSHA regulations is that fire departments (1) must train all employees to perform safely in hazardous job activities, and (2) must train them to state-mandated or nationally recognized “industry standards.”
Training Mandates Study for the California Fire Service: Schoonover and Dowdle December 19, 2023 Yreka City Council Agenda 12 of 177
In today’s world, what training is required to
become a first responder?
Training
Five Basic 1st Responder Needs/Functions
EMS (Emergency Medical Services): 24 hours
Structure Fire: 300 hours (Firefighter 1)
Wildland Fire: 120 hours
Driver/Operator: 104 hours plus DMV time
HazMat: 24 hours
Recurring Training
30 hours mandatory, 30 hours additional
Wildland Fire Refresher Training 8 hours
Other Required Training
• Illness and injury prevention, Workplace
Violence Prevention, Fire prevention, fire
extinguishers, sexual harassment prevention,
ergonomics/repetitive motion
• PPE, Hearing protection, respiratory protection,
emergency management systems, National
Response Framework, etc
• Public Safety and CPR, AED, Bloodborne
pathogens, ICS, Electrical safety, Confined space
Two in/Two out Rule, etc
Total “other”: 93 hours
To meet State and Federal mandates, over 550 hours of training is needed December 19, 2023 Yreka City Council Agenda 13 of 177
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334107.1 Page 1 of 5
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
December 5, 2023
Closed Session: 5:30 PM
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. 5:30PM CALL TO ORDER:

The meeting was called to order at 5:32 pm and Councilmembers Baker, Davis, Kegg, Middleton and McCoy were present. Closed session recessed at 6:30PM for regular session. Closed session discussion reconvened at 9:40 p.m.

2. PUBLIC COMMENT ON CLOSED SESSION:

No public comment was received.

Prior to recessing to closed session City Attorney Andrew Jared requested that the Council consider a motion to add one item not listed on the agenda that came up after the posting of the agenda that requires immediate action regarding a public contracting matter as potential litigation against the City. Mr. Jared noted that the City Council would need a 2/3 majority vote to add this item to the closed session agenda. (Government Code section 54954.2(b)(2)
Motion to Add to the Agenda Closed Session an item of potential litigation against the City as presented by City Attorney Jared, making the finding that this came up after the posting of the agenda and requires immediate action. (Adding to the agenda closed session item 3.e.) MOTIONED: Councilmember Davis
SECONDED: Councilmember Baker
AYES: Councilmember Baker, Kegg, Davis and Middleton
NOES -0-

3. CLOSED SESSION:

The City Council will recess to Closed Session to discuss the below item(s). At the conclusion of the Closed Session, Open Session will reconvene and reportable action, if any, will be announced. a. Liability Claim (Gov. Code § 54956.95)
Claimant: Alford, Julia
Agency claimed against: City of Yreka
b. Liability Claim (Gov. Code § 54956.95)
Claimant: Meek, Susan
Agency claimed against: City of Yreka
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c. Conference with real property negotiator (Govt C §54956.8) - Property: APN 053-591-400-000 and APN 053-591-380-000 - Agency negotiator: Jason Ledbetter
- Negotiating parties: E B Development Corporation
- Under negotiation: Price and Terms
d. Conference with legal counsel—anticipated litigation (City Initiating) (Govt C §54956.9(d)(4) - Number of cases: 2
Added after Posting of the Agenda pursuant to Gov. Code. §54954.2(b)(2) e. Conference with legal counsel—anticipated litigation (Govt C §54956.9(d)(2)) - Number of cases: 1

4. 6:30PM CALL TO ORDER REGULAR SESSION AND PLEDGE OF ALLEGIANCE:

The Regular Meeting session was called to order at 6:31 p.m.

5. 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.

Yreka Volunteer Fire Department Report - Fire Chief Jerry Lemos

6. PUBLIC COMMENTS:

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 Tad White Steve Radford, Dawnmarie Autry, Kyle Mikolajczyk, and Olivia Denman.

7. 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 November 13, 2023, through November 22, 2023. b. Approval of Minutes of the Regular Meeting held November 21, 2023. c. Resolution 2023-54 Approving the 2024 Meeting Calendar for the Regular City Council Meetings. d. Approve the Transportation Claims for the Local Transportation Fund for Fiscal Year 2023-2024 and Authorize the Mayor to Sign the Claims on Behalf of the City. e. Waive Full Text Reading of All Ordinances on the Agenda. Ordinances shall be introduced and adopted by title only.

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.

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

8. OLD BUSINESS:

Finance Director
a. Agenda Title: Second Reading of Ordinance No. 876 Regarding Proposed Water and Wastewater Utility Rate Increase.

Second Reading 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. 2018-27 and Finding The Ordinance Exempt From CEQA”.

Recommended City Council Action: Motion to adopt Ordinance No. 876.

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Public comment was heard from Lorenzo Love, Jack Phillips, Tad White, Jackie Terwilliger, Louise Gliatto, Diane Collier, Steve Radford, and Jan Osborn
Discussion ensued to modify the ordinance to reflect a 6.5% rate increase for water and 6.3% rate increase for wastewater, instead of the rate study proposed 9.6% and 9.5% rate increase.

Motion to Adopt Ordinance 876 as presented.

MOTIONED: Councilmember McCoy
SECONDED: Councilmember Middleton
AYES: Councilmember McCoy and Middleton
NOES: Councilmember Kegg, Davis, Baker
A motion was made to Introduce Ordinance 876 As Amended to reflect a 6.5% rate increase for water and

6.3% rate increase for wastewater.

MOTIONED: Councilmember Baker
SECONDED: Councilmember Davis
AYES: Councilmembers Davis, Baker, Kegg
NOES: Councilmember McCoy
ABSTAIN: Councilmember Middleton

9. 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.

10. NEW BUSINESS: (none)

11. CITY MANAGER/STAFF REPORTS:

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

City Manager Ledbetter will continue to work with the Finance Committee and Chief Lemos regarding the “State of the Fire Department.”
Matthew Bray, Director of Public Works, gave an update on the repairs that were made to the Fall Creek line.

12. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

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Councilmember Baker stated that she attended the Collier Interpretative Information Center meeting on November 28, 2023. Council Baker attended a virtual new law workshop sponsored by the California League of Cities on November 27, 2023, where she received over 157 pages of new California State Legislature.

Councilmember Baker would like Matt Bray, Director of Public Works, to attend an Ad Hoc Communications meeting in the future to discuss communicating with our ratepayers. Councilmember Baker requested Councilmembers consider resolutions of appreciation to our water operators.

Councilmember Kegg stated he would like to have a serious discussion with staff about the status on the “Hill”. Councilmember Kegg wants to discuss and explore the city’s legal options in getting the “Hill” cleaned up. Council member Kegg stated that he has some serious concerns about the amount of new people that have taken residence up on the “Hill”.

Councilmembers Kegg, Davis and McCoy echoed Councilmember Baker’s appreciation of the efforts of City Public Works staff with the recent Fall Creek incident.

Councilmember Davis advised that there will be a Fire Safe council will be meeting next week.

Mayor ProTempore McCoy complimented the Elk’s on the Holiday Parade and SCEDC Night of Lights, both City sponsored events. Mayor Middleton participated in the Holiday parade, riding in a new YPD Chevy Tahoe vehicle.

13. ADJOURNMENT:

The open session portion of the meeting adjourned at 9:29 p.m., and closed session discussions that had been recessed, resumed. Closed Session was adjourned at 10:25 p.m.

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CITY COUNCIL AGENDA MEMORANDUM
TO: Yreka City Council
FROM: Jason Ledbetter, City Manager
AGENDA TITLE: Approval of a $13,000 cash contribution from City of Yreka to Siskiyou Family YMCA for perimeter fencing at the
Siskiyou Family YMCA facility, 350 N. Foothill, Yreka
MEETING DATE: 12/19/2023
Recommended Action: Approval of a $13,000 cash contribution from City of Yreka to Siskiyou Family YMCA for perimeter fencing at the Siskiyou Family YMCA facility, 350 N. Foothill, Yreka.

Discussion: The City received a request letter from Scott Eastman, Executive Director of the Siskiyou Family YMCA outlining both the need and community benefit of their perimeter fencing project. The YMCA is requesting a cash contribution from the City as a community partner to help them complete the estimated $100,000 project.

The YMCA is installing a 6’ high black chain link fence to enclose the property. The last quote the YMCA received from Inline Fencing (about 18 months ago) was quoted at $135k roughly. Inline Fencing Owner, Ken was able to connect with a supplier that has an abundance of the product the YMCA was looking for and the supplier is willing to sell the fencing at a discounted rate. Per Scott, the new quote we received was for about $93,000. Scott asked that the City of Yreka consider assisting with the cost of fencing along the cemetery located on the southeast corner of the property. The cost of that span of fencing is right around $13,000.

Fiscal Impact: The Finance Committee met on December 5, 2023, and considered the contribution request. The committee recommended bringing forward the YMCA’s request for funds of $13,000 to the City Council.

Attachments:
(1) Email from Scott Eastman, CEO, Siskiyou Family YMCA (2) YMCA 2022 Community Benefit Report and YMCA 2022 Operating Highlights December 19, 2023 Yreka City Council Agenda 52 of 177
1 Rhetta Hogan
From: Scott Eastman <[email protected]>
Sent: Tuesday, December 5, 2023 7:36 AM
To: Jason Ledbetter; Rhetta Hogan
Subject: Request for Support on Perimeter Fence Project Attachments: Community Benefit Report 2022 - Red & Orange - 8 x 11.pdf; 2022 Highlights - 8 x 11.pdf Good Morning Jason & RheƩa,
First, I wanted to thank you both for your willingness to have the conversaƟon around the perimeter fencing project at the Y. This is a central cog of safety in our long term strategic plan as we do EVERYTHING we can to protect kids, families and all community members who frequent our facility & grounds.

Second, I want to re‐state the case for support of the perimeter fence project at the Y, in the event this conversaƟon extends to other parƟes (City Council members).

This project is targeted to impact YMCA members, program members and those organizaƟons that use our facility. Our Y has seen significant growth since 2010, and now has a membership base of over 2,400 individuals. In 2022, we served more than 4,500 people in Siskiyou County through membership and programs. We are the largest provider of youth recreaƟon services in the county and served 2,400 youth through those programs in 2022. We have a large and growing number of acƟve older adults 65+ that use the facility on a weekly basis. 26 different organizaƟons used our facility last year free of charge and we have formal MOU’s with 3 local high school districts and 1 elementary school district. Our fitness trail is used for a variety of community events, but is also used frequently by both Y members and Non‐members daily. Finally, we have been asked to step up and assist our extended community (County wide…and then some) during Ɵmes of natural disaster and emergency periods (Covid). Those Ɵmes have seen us meet the needs of folks in a variety of ways. During the Covid pandemic we provide programming and childcare for essenƟal staff members (police, fire, grocery store, etc..). Over the last several years of ‘fire season’, we’ve opened up the facility to those individuals impacted and offered free showers, free wi‐fi and a safe, clean air facility to rest. We have never turned someone away for inability to pay….a promise we have kept since our opening in 1994.

In summaƟon, we take very seriously the care and well being of our consƟtuents. Our intenƟon is to conƟnue to evaluate our facility and grounds annually and to conƟnue to provide a safe space for community members that desire to build healthy spirit, mind and body here at the Y. We’re asking the City of Yreka to support this perimeter fence project with a donaƟon that would cover 15% of the total cost. We have had a generous local donor who will cover the remainder of the costs.

Thank you for your consideraƟon of this maƩer….the partnership between the City of Yreka and the Y has been the foundaƟonal element of our success and ability to remain viable in this small community! I have included our ‘2022 Community Benefit Report’ and ‘2022 Highlights’ documents to this email.

Blessings,
ScoƩ
ScoƩ Eastman
CEO ‐ Siskiyou Family YMCA
350 North Foothill Dr.

Yreka, CA 96097
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2 (530) 842‐8916 Work
(530) 598‐1838 Cell

December 19, 2023 Yreka City Council Agenda 54 of 177
2022 HIGHLIGHTS
KEY PARTNERSHIPS — McConnell Foundation, Norris Foundation, The Ford Family Foundation, Pacific Power Foundation, City of Yreka, Yreka Splash City of Montague, Siskiyou County STAGE, CASA, Walmart, Community Foundation of the North State, Morgan Siskiyou Foundation, Rotary Clubs of Yreka & Montague, Yreka High School, First 5, Siskiyou County Behavioral Health, Yreka Union Elementary School, First 5, Golden Eagle Charter School, AWW, & Siskiyou County Probation Dept.

THE Y. SO MUCH MORE.

YOUTH DEVELOPMENT
 Camp L.E.A.D.— Over 80 youth participated in this week long outdoor leadership camp funded by The Ford Family Foundation. 8th Graders throughout the county come together to explore personality inventories, conflict management styles, team building games & more
 Healthy Kids Day — This nationally recognized free event saw 150+ kids participated in this free event featuring jump houses, games, prizes, rock climbing & more
 Sports Leagues / Camps — Over 900 kids participated in our summer sports camps and youth leagues / classes
 Arts & Enrichment —160+ kids took part in our dance, STEM magic & art classes / camps last year. With the help of the Morgan Siskiyou Foundation, our ‘Young Musicians’ program continues to offer music lessons to over 25 kids each week

HEALTHY LIVING
 Ugly Christmas Sweater Run — For the 11th year in a row, generous community sponsors stepped up to help us offer this fun event. Over 150 runners participated in our annual event  Fitness Classes — 25+ health & wellness classes offered to the community each week. Over 7,000 class visits in 2022
 YMCA Fitness Trail — Each week, hundreds of community members use our onsite 1 mile fitness trail
 Open Gyms — Over 250 adults attended our basketball,
volleyball & pickle ball open gyms last year
 Outdoor Recreation — Did you know that the Siskiyou Family YMCA is the only Y in the country to have their own whitewater rafting permit? We run guide training sessions each May and offer family and group trips throughout the summer months

SOCIAL RESPONSIBILITY
 Coats for Kids & Warm Hearts Drive — Last year, our Y partnered with the Ford Family Foundation, Columbia Bank, local church & service groups to hand out 150+ coats & other warm-clothing items to those in our community most at need  Financial Assistance — $46,780 in financial assistance was given out to over 500 individuals in need last year, keeping our promise of never turning someone away for inability to pay  ‘Protect Our Children’— Our Y is helping lead this TFFF initiative by training adults in Siskiyou County in the nationally recognized child sexual abuse prevention curriculum ‘Stewards of Children’ by Darkness 2 Light.
 ‘TLC’ — Our YMCA Teen Leadership Council, consisting of 17 teens, follows their mission statement: “Changing the perception of our generation by enriching people’s lives through community service.” Collectively, they volunteered over 180 hours in 2022 December 19, 2023 Yreka City Council Agenda 55 of 177

THE SISKIYOU FAMILY YMCA RESPONDS
TO COMMUNITY NEEDS BY...

SERVING ALL INCOMES, AGES & ABILITIES
 In 2022, we served more than 4,500 people in Siskiyou County through membership & programs.  We bring together young and old, men & women, people of all faiths, backgrounds and incomes.  No one is turned away for inability to pay. Scholarships, subsidies and outreach provide critical access to low-income families.
 We provided $46,780 in financial assistance & subsidies for children, youth & families in 2022.

SERVING VULNERABLE POPULATIONS IN OUR COMMUNITY
 LOW INCOME FAMILIES & ‘AT RISK YOUTH’: Our YMCA currently serves over 1950 individual members.

The Y provides a wide range of activities to foster healthy families and productive children including teen leadership, sports leagues, health & wellness classes, family nights, community service projects and more.  CHILDREN: We are the largest provider of youth recreation activities in the county. We offer high quality youth programs to working families regardless of ability to pay. Last year, we served over 2,400 children through recreational, sports & enrichment programs. All youth activities incorporate the YMCA core values of…Caring, Honesty, Respect & Responsibility.  ACTIVE OLDER ADULTS: One of the most consistent segments of our membership. We have 350+ members over 60 years of age.

We provide health & wellness opportunities designed to specifically meet the needs of that population.  COMMUNITY OUTREACH: Over the last year, we provided free events including ‘Healthy Kids Day’, ‘American Ninja Warrior’, ‘Sober Grad Night’ & Family Fun Nights’ that involved over 800 kids across the county.  OTHER N0N-PROFIT ORGANIZATIONS: In 2022, our Y provided over $8,000 worth of space / programming at no charge for outside clubs, schools, church groups and other community service organizations to help support them in providing the services they offer to the community.

MOBILIZING COMMUNITY RESOURCES TO MEET

COMMUNITY NEEDS
 LOCALLY DRIVEN: Our YMCA is led by a volunteer board of directors comprised of community leaders that provided over 900 hours of volunteered time supporting the work of the YMCA.  CONTRIBUTED INCOME: Last year, our YMCA received $173,000 in support from annual community contributions which represented 17% of our total revenue.  VOLUNTEER HOURS: Our YMCA mobilized over 127 volunteers who contributed 2360 hours of their time. Their volunteer efforts saved our YMCA an estimated $52,000+ in delivering these programs and services to our community.
 KEY PARTNERSHIP: For the 13th straight year, The Ford Family Foundation & Adventure Whitewater partnered with our Y to provide ‘Camp L.E.A.D.: A Youth Leadership Experience’, at Paradise Point along the Klamath River. 80+ youth participated as campers and counselors in a week long outdoor adventure camp that features rafting, hiking, team building and leadership development activities. This unique, award winning camp, is free to participants and focuses on youth in transition from 8th grade to high school.  Protect Our Children Initiative: The YMCA is helping lead the ‘Protect Our Children’ initiative in Siskiyou County that was set by The Ford Family Foundation in an attempt to curb child sexual abuse. This bold initiative uses the nationally recognized ’Stewards of Children’ training by Darkness 2 Light. We the help of our formal partner First 5, we have helped train over 2100 individuals since 2015!

PROMOTING HEALTHY LIFESTYLES
 SERVING HEALTH SEEKERS: Our YMCA has a longstanding dedication to providing programs and services that build healthy spirit, mind and body for all. We continue this commitment today by engaging and supporting ‘health seekers’ - individuals of all ages who wish to pursue a healthy lifestyle, but struggle to do so. With nationally certified personal trainers, and a fitness staff with over 125 years of combined fitness class instruction experience, our Y strives to meet the needs of those looking for a healthier lifestyle.
 With 25+ fitness classes offered each week, we had over 7,000 class participants in 2022.

YMCA MISSION: TO PUT CHRISTIAN PRINCIPLES INTO PRACTICE THROUGH PROGRAMS THAT BUILD HEALTHY SPIRIT, MIND & BODY FOR ALL! December 19, 2023 Yreka City Council Agenda 56 of 177

Page 1 of 3 ends

CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: John Elsnab, Human Resources Director
Agenda title: Adopt a Resolution 2023-55 Recognizing the City of Yreka’s 2024 Contribution to Employees Healthcare Costs through the IRS Section 125 Cafeteria Plan Meeting date: December 19, 2023
Summary:

The attached resolution makes the required annual inflation adjustment to the minimum employer contribution (MEC) for employee and retiree insurance contributions paid by the City.

Discussion:

The City currently contributes to employees’ cost of healthcare coverage through the City’s current cafeteria plan. The City provides a tiered Plan model contribution to all benefit eligible employees to participate in the City sponsored medical health benefits under the medical health insurance benefit program.

Under the CalPERS Health Benefit Program equal contribution option, the City is required under the Public Employees' Medical & Hospital Care Act (PEMHCA) to provide the same benefit to active employees and retired employees. (, Gov. Code Section 22892(b)(1)). The amount designated is the minimum MEC is set by CalPERS annually based on inflation. For 2024, the MEC is $157. The City of Yreka annually adopts the new minimum by Resolution for the coming year. This benefit is included in our collection bargaining unit agreements.

The City provides the MEC for retirees and a larger tiered benefit for active employees. The City’s design is common and deemed PEMHCA compliant by using a flexible benefits cafeteria plan, for active employee contributions in excess of the retiree contribution. It is through the cafeteria plan, that City designates this minimum amount as the medical contribution towards active employees and then contributes the additional benefit through the plan structure for employee to use to pay (deduct from their payroll) for medical benefit premiums in excess of the MEC.

This resolution defines the employer’s contribution amount to the cafeteria plan in excess of the equal MEC.

Fiscal Impact: Fiscal impacts for the annual minimum employer contribution were considered in approval of bargaining unit settlements and the City’s bi-annual budget.

Recommendation and Requested Action:

Adopt Resolution 2023-56 Recognizing the City of Yreka’s 2024 Contribution to Employees Healthcare Costs through the IRS Section 125 Cafeteria Plan.

December 19, 2023 Yreka City Council Agenda 57 of 177

Page 2 of 3 ends

Supplemental Information –
Cafeteria Plan and CalPERS PEMHCA
Cafeteria Plan
A cafeteria plan, hereafter the Plan, pursuant to Internal Revenue Code Section 125, is an employee benefits program that enables participants the opportunity to purchase certain qualified benefits (e.g., medical health insurance) on a pre-tax basis, thereby reducing their total taxable income and increasing their spendable/take home income.

Cafeteria Plan allowance
The City agrees to provide tiered Plan model contribution to all benefit eligible employees to participate in the City sponsored medical health benefits under the medical health insurance benefit program and offer employees FSA. Any tax consequences (most likely regarding employees who opt out) resulting from City contributions to the Cafeteria Plan are the sole responsibility of the employee. Any increases to the minimum monthly contribution under the Public Employees Medical and Hospital Care Act (PEMHCA) will result in a corresponding decrease in the employee's Plan allowance, unless otherwise agreed to on the employee/employer Memorandum of Understanding.

Under the California Public Employees' Retirement System (CalPERS) Health Benefit Program equal contribution option, the City is required under PEMHCA to provide the same benefit to active employees and retired employees. (Gov. Code Section 22892(b)(1).) The amount designated is the minimum employer contribution (MEC) is set by CalPERS annually based on inflation. For 2024, the MEC is $157. In 2023, the minimum was $151. This amount increases annually on January 1 by a cost-of-living adjustment and will be $157 for calendar year 2024.

The City provides the MEC for retirees, and a larger tiered benefit for active employees. The City’s design is fairly common and deemed PEMHCA compliant by using a flexible benefits cafeteria plan, for active contributions in excess of the retiree contribution. It is through the cafeteria plan, that City designates this minimum amount as the medical contribution towards active employees and then contributes the additional benefit through the plan structure for employee to use to pay (deduct from their payroll) for medical benefit premiums in excess of the minimum equal contribution.

Active benefit eligible employees:

The City will contribute an amount to the Plan, on behalf of active employees currently covered by CalPERS medical policy. The monthly contribution to the flexible benefit plan shall be equal to 100% of the premium for the employee and his or her eligible dependents not to exceed the amounts in the following table.

December 19, 2023 Yreka City Council Agenda 58 of 177

Page 3 of 3 ends

City’s Plan Contribution 2023 Active Employee
Cafeteria Benefit
(that includes the
MEC)
CalPERS
Medical
Benefit
Total Benefit
Employee $ 758 $157 $ 915
Employee + 1 eligible covered
individual
$1,516 $157 $1,673
Employee + 2 or more eligible
covered individuals
$1,971 $157 $2,128

A portion of this amount (the minimum amount each year described above) is specifically designated toward the cost of medical insurance coverage. The City’s excess of the MEC contribution to the Plan can only be used for the purchase of City provided medical coverage, except for the employee opt out provision (see below).

No changes to retired employees:

The retiree’s monthly contribution toward their medical coverage shall be the cost of their monthly health benefit premium less the total amount of the City’s contribution on their behalf as described above. For a retired employee to be eligible to receive health benefits through the City upon retirement, a retiree must meet the following definition of “annuitant” under CalPERS’ requirements:
a) The employee must be a member of CalPERS; and
b) The employee must retire within 120 days of separation from employment with the City and begin receiving a monthly retirement allowance from CalPERS.

Summary:

This action adjusts the MEC due to the required annual inflation increase. This proposes no change to the City continuing to contract with CalPERS for the purpose of providing employees with medical insurance benefits. The City's maximum monthly contribution for each eligible active employee for the purpose of medical insurance will be equal to the minimum MEC required under the PEMHCA.

December 19, 2023 Yreka City Council Agenda 59 of 177
332873.1
RESOLUTION NO. 2023-55
RESOLUTION RECOGNIZING THE CITY OF YREKA’S 2024 CONTRIBUTION TO EMPLOYEES’ HEALTHCARE COSTS THROUGH THE IRS SECTION 125 CAFETERIA PLAN
WHEREAS, the City Council of the City of Yreka deems it in the best interest of the City, the employees of the City of Yreka to contribute to active employee’s healthcare cost through a Section 125 Cafeteria Plan and adopt the Cafeteria Plan rates for 2024; and WHEREAS, the City of Yreka contracts with CalPERS for the purpose of providing employees with medical insurance benefits; and
WHEREAS, as part of contracting with CalPERS for medical health insurance and to meet the requirements of the Public Employees Medical and Hospital Care Act (PEMHCA), Government Code §§22892(a) and 22892(b) requires employers to provide the same health benefit to active and retired employees; and
WHEREAS, the City of Yreka’s contribution for each employee, retiree, or survivor for the 2024 health benefit year shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members in a health benefits plan up to the maximum of $157, (adjusted as necessary to meet the PEMCHA minimum contribution amount); and
WHEREAS, the City of Yreka through its Section 125 Cafeteria Plan meets the requirements set forth by CalPERS and PEMHCA for providing equal contributions for active and retiree health care through use of this plan; and
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Yreka as follows:

Section 125 Cafeteria Plan for the City of Yreka as set forth in the attachment marked Attachment "A", and incorporated by reference.

Passed and adopted this 19th day of December 2023 by the following vote:

AYES:

NAYS:

ABSENT:
______________________
Corey Middleton, Mayor
Attest: ______________________
Cyndy Prohaska, City Clerk
December 19, 2023 Yreka City Council Agenda 60 of 177
332873.1
Attachment A
This document is for the City of Yreka Cafeteria Plan 125 Document.

DOLLAR ALLOWANCE
Covered Contractual Agreements for City of Yreka Management, Miscellaneous Employees (YEA) and Yreka Peace Officers (YPOA) Employees.

City’s Plan Contribution 2024 Active Employee
Cafeteria Benefit
(that includes the
MEC)(1)
Annuitant
MEC
Employee $758 $157
Employee + 1 eligible covered
individual
$1,516.00 $157
Employee + 2 or more eligible
covered individuals
$1,971.00 $157
Opt Out Contribution $400 N/A
December 19, 2023 Yreka City Council Agenda 61 of 177

CITY COUNCIL AGENDA MEMORANDUM
TO: Yreka City Council
FROM:

PREPARED BY:

Jason Ledbetter, City Manager
John Elsnab, Human Resources Director
AGENDA TITLE: Discussion/Possible Action – Delegation of Authority to File and Make Decisions on Applications for Disability
Retirement
MEETING DATE: December 19, 2023
Recommended Action:

Adopt Resolution 2023-56 Delegation of Authority to File and Make Decisions on Applications for Disability Retirement.

This resolution will supersede Resolution 2608 and update the City of Yreka’s delegation of authority resolution allowing the City Manager to make and certify determinations to the California Public Employees’ Retirement System (“CalPERS”) regarding whether local safety members are eligible to retire for disability and whether such retirements are industrial in nature, and to file applications for disability retirement on behalf of all members.

Background/Analysis
Under the Public Employees’ Retirement Law (“PERL”) local safety members may be eligible to disability retire through CalPERS if they are substantially incapacitated from performing their usual job duties.

With respect to local safety members, when an application for disability retirement is filed by or on behalf of a local safety member, CalPERS requests that the City make the initial determination regarding whether an employee is substantially incapacitated from performing his or her usual duties and whether the incapacitation is industrial in nature.

The City must certify its decision to CalPERS. The local safety member may appeal the decision and receive an administrative hearing.

December 19, 2023 Yreka City Council Agenda 62 of 177
Under the PERL, the City Council makes the initial decision. However, the PERL allows the City Council to delegate the decision to a subordinate officer. The subordinate officer may also be delegated authority to make any arrangements necessary to provide for an appeal if the local safety member appeals the City’s decision on an application for disability retirement.

The City previously delegated authority through Resolution No. 2608, but the resolution does not clearly provide that, in addition to filing applications for disability retirement, the City Manager can also make determinations on applications for industrial disability retirement. Accordingly, CalPERS requested that the City update its resolution if the City Manager will make the determination on applications for disability retirement for local safety members.

Staff recommends that the City Council delegate authority to the City Manager to make the determination regarding whether a local safety member is eligible to retire for disability and to make necessary arrangements for any appeals of the City’s decision. The resolution will also allow the City Manager to file applications for disability retirement on behalf of all employees.

Fiscal Impact:

No change in fiscal impact.

December 19, 2023 Yreka City Council Agenda 63 of 177
RESOLUTION NO. 2023-56

DELEGATION OF AUTHORITY TO FILE AND MAKE DECISIONS ON

APPLICATIONS FOR DISABILITY RETIREMENT
WHEREAS, the City of Yreka is a contracting agency of the California Public Employees’ Retirement System;
WHEREAS, the Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he or she is classified as a local safety member is disabled for purposes of the Public Employees’ Retirement Law and whether such disability is “industrial” within the meaning of such law; WHEREAS, the City Council of the City of Yreka has determined upon legal advice that it may delegate authority under Government Code section 21173 to make such determinations to the incumbent of the position of City Manager;
NOW BE IT RESOLVED, that the City Council of the City of Yreka delegates and it does hereby delegate to the incumbent in the position of City Manager to make applications on behalf of the City of Yreka pursuant to Government Code section 21152(c) for disability retirement of all employees and to initiate requests for reinstatement of such employees who are retired for disability;
BE IT FURTHER RESOLVED, that the City Council of the City of Yreka delegates and it does hereby delegate to the incumbent of the position of City Manager authority to make determinations of disability on behalf of the City of Yreka under Government Code section 21156 and whether such disability is industrial and to certify such determinations and all other necessary information to the California Public Employees’ Retirement System; BE IT FURTHER RESOLVED, that in the event that any local safety member appeals the decision of the City Manager regarding his or her incapacitation from the performance of his or her duties pursuant to the Public Employees’ Retirement Law, the City Manager is authorized and empowered to make such arrangements to have the appeal heard pursuant to the laws governing California Public Employees’ Retirement System retirements, including, but not limited to, entering into an agreement with the Officer of Administrative Hearings for the provision of a hearing before an administrative law judge.

Passed and adopted this 19th day of December 2023 by the following vote:

AYES:

NAYS:

ABSENT:
______________________
Corey Middleton, Mayor
Attest: ______________________
Cyndy Prohaska, City Clerk
December 19, 2023 Yreka City Council Agenda 64 of 177

CITY COUNCIL AGENDA MEMORANDUM
TO: Yreka City Council
FROM: Jason Ledbetter, City Manager
AGENDA TITLE: Approval of contract with State of California, Department of Cannabis Control for $115,000 Retail Cannabis Licensing program grant.

MEETING DATE: 12/19/2023
Recommended Action: Approval of contract with State of California, Department of Cannabis Control for $115,000 Retail Cannabis Licensing program grant.

Discussion: The City applied for (Resolution 2023-16 dated March 21, 2023) and received a retail cannabis licensing program grant award. The State of California, Department of Cannabis Control (hereafter referred to as the DCC) has prepared the attached contract that outlines terms for grant compliance.

Resolution 2023-16 delegated authority to the City Manager (on behalf of the City Council of the City Yreka) to execute the grant agreement with the DCC, including any extension or amendments thereof and any subsequent grant agreement with the DCC in relation thereto.

Should the City not meet the contract terms that includes the development of a licensing program for at minimum a medicinal nonretail cannabis licensing program, the State of California, Department of Cannabis Control would be able to request repayment from the City for grant funds expended, e.g. a claw back provision.

Attachments:
(1) Retail Cannabis Agreement
(2) Resolution 2023-16
December 19, 2023 Yreka City Council Agenda 65 of 177

STATE OF CALIFORNIA- DEPARTMENT OF GENERAL SERVICES
SCO ID:

STANDARD AGREEMENT
STD 213 (Rev. 04/2020)
AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER (If Applicable)

1.This Agreement is entered into between the Contracting Agency and the Contractor named below:

CONTRACTING AGENCY NAME

CONTRACTOR NAME

2. The term of this Agreement is:

START DATE

THROUGH END DATE

3.The maximum amount of this Agreement is:

4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement.

Items shown with an asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto.

These documents can be viewed at https://www.dgs.ca.gov/OLS/Resources IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO.

CONTRACTOR
CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership, etc.)

CONTRACTOR BUSINESS ADDRESS CITY STATE ZIP

PRINTED NAME OF PERSON SIGNING TITLE

CONTRACTING AGENCY NAME

STATE OF CALIFORNIA

CONTRACTING AGENCY ADDRESS CITY STATE ZIP

PRINTED NAME OF PERSON SIGNING TITLE

CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED
CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL EXEMPTION (If Applicable) Exhibits Title Pages
Exhibit A Project Summary & Scope of Work
Attachment
A1 Permitting Plan
Exhibit B Budget Details
Exhibit B1 Budget Detail Justification
Exhibit C Grant Agreement- Standard Terms and Conditions December 19, 2023 Yreka City Council Agenda 66 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 2 of 26 ends

Exhibit A – Scope of Work
Project Summary & Scope of Work

KEY PERSONNEL

RECIPIENT AND PROJECT INFORMATION

1. Department of Cannabis Control (DCC) hereby awards an Agreement to the Recipient for the project described herein:

Local Jurisdiction Assistance Grant – City of Yreka

2. The Managers for this Agreement are:

FOR DCC: FOR RECIPIENT (Required):

Name: Laura Barlow Name:

Division/Branch: Administration/ OGM Organization:

Address: 2920 Kilgore Road Address:

City/State/Zip: Rancho Cordova, CA 95670 City/State/Zip:

Phone: 279-217-3610 Phone:

Email Address: [email protected] Email Address:

3. The Grant Administrative Contacts for this Agreement are:

FOR DCC: FOR RECIPIENT (Required):

Name: Name:

Division/Branch: Organization:

Address: 2920 Kilgore Road Address:

City/State/Zip:Rancho Cordova, CA 95670 City/State/Zip:

Phone: Phone:

Email Address: Email Address:

December 19, 2023 Yreka City Council Agenda 67 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 3 of 26 ends

Executive Summary
The Cannabis Local Jurisdiction Retail Access Grant Program provides funding to local jurisdictions that do not currently have a local cannabis retailer licensing program to assist them in developing and implementing a program and issuing permits pursuant to the program.

Instructions: Provide an executive summary paragraph summarizing how grant funds will be utilized. Outline the specific steps the jurisdiction will take to establish a local cannabis retailer licensing program and to issue retailer licenses pursuant to the program.

The City of Yreka will be utilizing the grant to pay for the initial cost of establishing a cannabis licensing program. At grant application the City Council authorized a medicinal non storefront licensing program, with the expected issuance of one to three licenses. It is through the public engagement process for community input into the types of licensing programs, the City will re-evaluate the types of licensing programs that should be established.

With the assistance of the consultant, the City will benefit from setting up processes to accommodate both adult and medicinal, non-storefront and retail, to avoid redoing processes, and that the ordinances can be drafted to reflect these options, if not all sections of the ordinance are implemented initially by the City Council.

The equity licensing opportunity gives the City a chance to utilize its consultant and planning department to establish an equity program to benefit cannabis licensing for all applicants, and program can become a framework for additional processes where the City has not taken into consideration a robust equity program, e.g., general business licensing.

Jurisdiction Program Details
A. Provide a detailed description of the status of cannabis retail licensing within your jurisdiction.

The city has municipal code that bans the sale, storage, and distribution of marijuana/cannabis in city limits, (YMC Chapters Public Peace, Safety and Morals 9.25-9.27, and Zoning: 16.100.010) B. Describe in detail the specific steps your jurisdiction has taken, if any, to develop a local cannabis retailer licensing program. If your local jurisdiction has not taken any action on the establishment of a retailer program, please say so.

The City has (1) applied for and received notification of the grant award to assist with development of a licensing program, (2) solicited and received a responsive, qualified cannabis consulting firm’s proposal to assist with public outreach, licensing, permitting, municipal code updates and the development of an equity licensing program. (3) The City has conducted a special meeting to hear and listen to a speaker brought forward by residents concerned about the use of cannabis – primary outcome was that those residents felt heard. The City expects a public outreach campaign and has procured Citizen Lab ™, a project-based cloud-engagement application, and the City is the process of onboarding the product.

Goals and Intended Outcomes
List the goals and intended outcomes of this funding opportunity as they apply to your jurisdiction’s anticipated local retail licensing program. Goals should explain how funding will be utilized to establish a cannabis retailer licensing program and to describe how the jurisdiction will issue retailer licenses. The intended outcome(s) should describe the specific change(s) or result(s) that may occur when the goal is achieved. Also, include which budget line items from your revised budget will be tied to these goals. At a minimum, the following goals should be addressed, additional goals may also be added:

Goal 1. Develop and implement a local cannabis retailer licensing program.

Insert goal description. How does this goal support the grant? How will it be accomplished? The City will develop a local cannabis licensing program. The City will initially conduct community outreach, December 19, 2023 Yreka City Council Agenda 68 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 4 of 26 ends

education, and engagement exercises to receive community input. The input received will be incorporated into the City’s licensing program priorities and goals. The City will utilize an experienced consultant with establishing retail cannabis licensing programs to facilitate the engagement process. Based upon that engagement and City Council direction, consultant will draft ordinance, allowing within the draft for varying levels of retail licensing program implementation, that can be easily implemented. For example, in the initial application, the medical only, retail nonstorefront (delivery) was elected, however through the engagement process and or time, the City (residents and elected officials), may want future program expansion to retail storefront facilities. Through engagement, code development, and permitting, the licensing program should factor in those aspects to account for a scalable program.

Budget Line
Item
Action Intended Outcome
A1 Planning Director – Coordinate work
with consultant on development of
licensing program; that includes grant
management, timelines, oversight,
review of all licensing, zoning, and
permitting material
Timelines and budget goals met, grant
program expectations are delivered,
useful, understandable, and
meaningful documents and processes
are in place.
1st City Council Workshop. City has
conducted two meetings for the
Cannabis Grant application (March
2023) and special public meeting on
cannabis (July 2023).

A2 Finance: Grant fiscal reporting and
tracking for budget expenditures,
reimbursements
Grant expense reports are complete,
accurate and timely, comply with
budget and program guidelines.

A3 City Clerk – Coordination of Noticing,
Public meetings, Engagement, public
information, press releases,
administratively assists Legal,
Administration, Planning and Finance
Noticing, meeting publications,
ordinance publication, public records
requests, are compliant.

Public Townhall Meeting (January
2024),
Coordination of Tours of existing retail
facilities in regional cities. (Site Visits
for elected Officials - January 2024).
2nd City Council Workshop on
Implementation Progress and
Discussion on Storefront Retail and
Industry Regulations.

B1 Public Engagement and Permitting –
use licensing of software for public
engagement and fee permitting
Platform is established and
maintained.

Launch Online Public Engagement
Site, (Nov 2023)
B2 Consultant -facilitates with (a)
Community Outreach, (b) Health &
Safety and Zoning (land use)
regulations, (c) full cost recovery (fee
development), (d) ballot measure
development - options, (e) application
(a) attend/present at two community
meetings (b) develop draft
ordinance(s), prepare staff reports
and supporting documents and
attend council meeting (c)
development of a fee study report,
resolution and supporting documents,
December 19, 2023 Yreka City Council Agenda 69 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 5 of 26 ends

and selection process, (f) monitoring
and compliance - ongoing.
(e) development of application
process and package.
• Public Outreach and Input on
Alternatives (Dec 2023-Mar
2024)
• Initial Public Input Summary
Report with Alternatives, March
2024.
• Draft initial Nonretail Storefront
Delivery Ordinance Changes
(February through May 2024)
• Planning Commission Public
Hearing on Nonretail Storefront
Delivery Ordinance changes
(May 2024).
• 1st Reading on Nonretail
Storefront Delivery Ordinance
Changes at City Council (June
2024).
• Adoption of Nonretail Storefront
Delivery Ordinance Changes
(July 2024)
B3 Legal – City Attorney Ordinances are adopted and legal. • Draft initial Nonretail Storefront
Delivery Ordinance Changes
(February through May 2024).
• Planning Commission Public
Hearing on Nonretail Storefront
Delivery Ordinance changes
(May 2024).
• 1st Reading on Nonretail
Storefront Delivery Ordinance
Changes at City Council (June
2024).
• Adoption of Nonretail Storefront
Delivery Ordinance Changes
(July 2024)
B4 General Supplies - Supplies costs are
grant related direct costs and are
required materials.

Expenditures and necessary and grant
compliant.

Goal 2. Develop and implement a local cannabis equity program (if applicable) Insert goal description. How does this goal support the grant? How will it be accomplished? The City’s consultant, experience in development of social equity programs, will work with the City in establishing an equity program, by drafting a social equity element into the City’s ordinance to promote equitable access to commercial cannabis business opportunities. The equity program/ordinance will establish the criteria used to December 19, 2023 Yreka City Council Agenda 70 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 6 of 26 ends

determine who qualifies for participation in the City’s local equity program and establish the services provided to equity applicants.

Budget Line
Item
Action Intended Outcome
C1 Planning staff – provide permitting
technical assistance, and
counseling for licensing equity
program.

Equity license program developed, and
equity ordinance adopted.
• Draft initial Nonretail Storefront
Delivery Ordinance Changes
(February through May 2024)
• Planning Commission Public
Hearing on Nonretail Storefront
Delivery Ordinance changes.
• 1st Reading on Nonretail
Storefront Delivery Ordinance
Changes at City Council.
• Adoption of Nonretail Storefront
Delivery Ordinance Changes
(July 2024)
D1 Consultant -Equity Program
Development: Create program that
effectively eliminates the barriers
within the cannabis industry for
communities that have been
negatively affected by the
criminalization of cannabis,
providing them with the tools and
opportunities to participate in the
industry
Development of an Equity Program
Draft Social Equity Element of
Ordinance for city for Adoption.
• Public Outreach and Input on
Alternatives (Dec 2023-Mar
2024)
• Initial Public Input Summary
Report with Alternatives, March
2024.
• Draft initial Nonretail Storefront
Delivery Ordinance Changes
(February through May 2024)
• Planning Commission Public
Hearing on Nonretail Storefront
Delivery Ordinance changes
(May 2024).
• 1st Reading on Nonretail
Storefront Delivery Ordinance
Changes at City Council.
• Adoption of Nonretail Storefront
Delivery Ordinance Changes
(July 2024)
D2 Software platform and Materials for
Multilingual Marketing and
Outreach. Translation Services
Develop of landing page for applicants,
dynamic applications with online help
assistance and guided steps for
licensing applicants.

December 19, 2023 Yreka City Council Agenda 71 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 7 of 26 ends

• Launch Online Public
Engagement Site, (Nov 2023)
D3 General Supplies – Development of
Information material, flyers,
printing/copying
Printed material - easy to understand
brochures, applications information
(Spanish and English) for Licensing
Applicants.

Goal 3. Issue Retail Licenses.

Insert goal description. How does this goal support the grant? How will it be accomplished? The City’s adoption of ordinances, program guidelines and development of a fee structure are measurable tasks needed to achieve the grant program goal of retail license issuance. Success is measured by program approval by the city’s elected officials and issuance of licenses. Additionally, as mentioned in the program development, scalability of the program to expand beyond the proposed application’s medicinal non store front licensing, would ensure that the City is positioned for future adaptation.

Oversee process, applications
are received and processed in
accordance with program
guidelines developed.
• Begin Nonretail
Storefront Delivery
Permit Implementation
Aug. 2024 – Sept. 2024
B2 Consultant will have developed procedures,
documents, information packages for
licensing, and will assist the City in
processing its initial licenses to ensure
Planning staff is familiarized with the
licensing application processing.

Monitor program
implementation through the
applicant licensing process,
provide technical support to
City.
• Begin Nonretail
Storefront Delivery
Permit Implementation
Aug. 2024 – Sept. 2024
B3 Legal – City Attorney Review of license application. • Begin Nonretail
Storefront Delivery
Permit Implementation
Aug. 2024 – Sept. 2024
Goal 4. Support Equity Retail Applicants and Licensees (if applicable).

December 19, 2023 Yreka City Council Agenda 72 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 8 of 26 ends

Insert goal description. How does this goal support the grant? How will it be accomplished? The City’s adoption of an ordinance(s) and social equity program will serve to enable commercial retail applicants ease of access to information on how to apply, how to receive technical and/or fee deferral assistance for their application to the cannabis licensing program, under the equity program. The consultant will help facilitate City staff and applicants in accessing the equity licensing program, and staff will be trained to ensure applicants, or potential applicants have access in person and online to equity licensing program information. Success would be measured by the number of applicants who are aware of, able to access and file applications through the equity licensing program, and benefit with the receipt of a local cannabis license.

Budget Line
Item
Action Intended Outcome
A1 Planning Director – will oversee initial
applicant outreach and application process
in coordination with consultant for issuance
of initial expected licenses. Ensure
applicant is offered and understands
possible fee deferral and other
opportunities that are developed within the
equity program.

Oversee process, applications
are received and processed in
accordance with equity
program guidelines developed.

Ideally, at least one license is
issued under the equity
program.
• Begin Nonretail
Storefront Delivery
Permit Implementation
Aug. 2024 – Sept. 2024
B2 Consultant will have developed equity
licensing components that affords
accessibility for applicants wishing to apply
for cannabis equity licensing.

Provide technical support to
City and if needed applicant, to
ensure applicant has access to
avail themselves of the equity
program developed by the City.
• Begin Nonretail
Storefront Delivery
Permit Implementation
Aug. 2024 – Sept. 2024
B3 Legal – City Attorney Review of equity license
application.
• Begin Nonretail
Storefront Delivery
Permit Implementation
Aug. 2024 – Sept. 2024
December 19, 2023 Yreka City Council Agenda 73 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 9 of 26 ends

Attachment A1: Permitting Plan
The Permitting Plan (DCC-2626) describes the local jurisdiction's plan to establish a cannabis retailer licensing program. If selected for a grant award, this Permitting Plan will be incorporated into the Grant Agreement as the Scope of Work.

Anticipated Local Cannabis Retail Licensing Program
What type(s) of cannabis retail activity will the jurisdiction allow? (Select all that apply) ☐ Retail Storefront (during the licensing process the City will re-evaluate for Retail Storefront) ☒ Retail Non-storefront (Delivery)
Will the jurisdiction allow adult-use, medicinal, or both adult-use and medicinal commercial cannabis activities?
☐ Adult-use only Medicinal only
☒ Medicinal only
☐ Both adult-use and medicinal
How will the jurisdiction license cannabis retail businesses? ☒ Through the existing non-cannabis business license process (eligible for priority review) ☐ Through a new cannabis-specific licensing process
Will the jurisdiction limit the number of cannabis retail licenses available? ☒ Yes
☐ No
If the jurisdiction plans to limit the number of retail licenses available, approximately how many licenses will be made available? (Please enter a whole number for each, not a range.) # of storefront retail licenses: (during the grant licensing development the City will re-evaluate) # of non-storefront (delivery) retail licenses: up to three If the jurisdiction plans to limit the number of retail licenses available, how do you propose to issue the licenses? (Select one)
☐ Competitive
☒ First-come, first-serve (based on complete applications) ☐ Lottery
☐ Other: Click or tap here to enter text.

Will your program license only cannabis retail business projects that are eligible for a categorical exemption under the California Environmental Quality Act (CEQA)? ☒ Yes (eligible for priority review)
☐ No
Anticipated Equity Program (If Applicable)
Will the jurisdiction's cannabis retail licensing program contain provisions to assist equity applicants? ☒ Yes (eligible for priority review)
December 19, 2023 Yreka City Council Agenda 74 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 10 of 26 ends

☐ No
How will the jurisdiction assist equity businesses? (Select all that apply) ☒ Financial assistance
☐ Application fee waivers
☐ License fee waivers
Please describe: Fee deferral programs to assist with business start up costs ☒ Technical assistance (select one or more of the following):
☐ Legal guidance
☐ Financial guidance
☒ Assistance with local and state license applications
☒ Compliance training
☒ Other: Translation services
How will "equity" be defined?
☐ The jurisdiction has already completed an equity assessment. Provide a link or attach a copy: Click or tap here to enter text.
☐ The jurisdiction will complete an equity assessment.
☒ The jurisdiction will adopt the state's definition of "qualified equity applicant or licensee" (CCR Title 4, §15014.1(a)).

Will the jurisdiction limit the number of equity licenses available to cannabis retail businesses? ☒ Yes (limited to overall licenses available)
☐ No
If the jurisdiction plans to limit the number of equity licenses available, approximately how many licenses will be made available? (Please enter a whole number for each, not a range.) # of storefront retail licenses: (during the grant licensing development the City will re-evaluate) # of non-storefront (delivery) retail licenses: three
Local Cannabis Retail Permitting Plan
Completed Efforts
What steps have already been taken, if any, to develop a local cannabis retail licensing program? The City of Yreka has held town halls and public meetings to ascertain interest and ordinance. At the time the City Council adopted an ordinance with a ban, with a provisional wait and see policy based upon other jurisdictions experience with cannabis.

New Activities: Program Development
Will the establishment of a local cannabis retail licensing program require the adoption of a new ordinance or a change to existing ordinances?
December 19, 2023 Yreka City Council Agenda 75 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 11 of 26 ends

☒ Yes, Has an ordinance already been drafted? ☐ Yes ☒ No ☐ No. Please explain: Click or tap here to enter text.

What specific steps will you take to establish a local cannabis retailer licensing program? (Select all that you plan to do)
☒ Draft an ordinance, resolution, or regulations allowing the establishment of cannabis retail businesses within the jurisdictional boundaries of the jurisdiction ☒ Adopt an ordinance, resolution, or regulations allowing the establishment of cannabis retail businesses within the jurisdictional boundaries of the jurisdiction ☒ Hire staff and/or contractors
☒ Hold community outreach meetings and engagement events ☐ Conduct surveys or otherwise solicit input
☐ Form a stakeholder workgroup or technical advisory committee ☒ Consult local jurisdictions with existing cannabis programs ☐ Conduct economic studies
☐ Conduct environmental reviews
☒ Develop application forms and/or an online application portal ☐ Other: Click or tap here to enter text.

Estimated Timeline
Utilize the chart below to provide an estimated timeline for the steps that you anticipate taking to establish the local cannabis retailer licensing program. The established timeline should include the steps marked in the question above and, if applicable, the establishment of the equity program.

Date Event
July 2023 1st City Council Workshop
November 2023 Launch Online Public Engagement Site
January 2024 Public Town Hall Meeting
January 2024 Tours of existing retail facilities in regional cities March 2024 Public Input Summary Report with Alternatives December 2023 through March 2024 Public Outreach and Input on Alternatives February through May 2024 Draft Nonretail Storefront Delivery Ordinance Changes
May 2024 Planning Commission Public Hearing on Nonretail Storefront Delivery Ordinance changes
June 2024 1st Reading of Nonretail Storefront Delivery
Ordinance Changes at City Council
December 19, 2023 Yreka City Council Agenda 76 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 12 of 26 ends

July 2024 Adoption of Nonretail Storefront Delivery Ordinance Changes
August - Sept 2024 Begin Nonretail Storefront Delivery Permit Implementation
May 2024 2nd City Council Workshop on Implementation
Progress and Discussion on Storefront Retail and
Industry regulations
Tentative: Sept 2024 through December 2024 Draft additional ordinance changes if City Council supports opening other Cannabis industry
regulations
When do you anticipate accepting your first cannabis retail license/permit application? Date: 2/1/2024
How long do you expect it will take to process each license application, from application submission to license issuance?
Proposed timeline in months: Less than six months for complete applications When do you anticipate issuing your first cannabis retail business license within your jurisdiction? Date: August 2024
Staffing and Resources
Will you utilize existing staff, hire new staff, or use a contractor/consultant to operate your cannabis retail licensing program? (Select all that apply & enter the number of anticipated full-time equivalent positions for each)
☒ Utilize existing staff - # of positions: three
☐ Hire new staff (permanent) - # of positions: Click or tap here to enter text. ☐ Hire new staff (temporary) - # of positions: Click or tap here to enter text. ☒ Use a contractor/consultant - # of positions: Legal and Planning Consultants How many staff members, including contractors, will you need to operate your cannabis retail licensing program on an ongoing basis?
Total number of full-time equivalent positions: 0.10 FTE for establishing ongoing operations December 19, 2023 Yreka City Council Agenda 77 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 13 of 26 ends

Exhibit B
Budget Details
Jurisdiction Name: City of Yreka
Total Funding Awarded: $ 115,000.00
Total Funding Received: $ -
Total Funding Budgeted: $ 115,000.00
Total Funding Expended: $ -
Retailer Licensing Program Costs
Retailer Licensing Program Personnel Costs
Personnel Classification Role in Project Description
FY 23-24
Base Position
Costs
FY 23-24
Percentage of
Time
FY 23-24
Total
FY 23-24 Actual
Expenditures
FY 24-25
Base Position
Costs
FY 24-25
Percentage of
Time
FY 24-25
Total
FY 24-25
Actual
Expenditures
FY 25-26
Base Position
Costs
FY 25-26
Percentage of
Time
FY 25-
26 Total
FY 25-26 Actual
Expenditures
Total
Budget
Amount
Total Grant
Expenditures
A1 Planning Director City Planner $ 181,306.00 0.04 $ 7,252.24 $ - $ 181,306.00 0.06 $ 10,878.36 $ - $ - $ - $ - $ 18,130.60 $ - A2 Assistant City Manager/City Clerk City Clerk $ 191,880.00 0.004 $
767.52 $ - $ 191,880.00 0.016
$
3,070.08 $ - $ - $ - $ - $ 3,837.60 $ -
A3 Finance Director Fiscal Component $ 192,090.00 0.025 $ 4,802.25 $ - $ 192,090.00 0.02 $ 3,841.80 $ - $ - $ - $ - $ 8,644.05 $ - A4 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A5 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A6 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A7 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A8 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A9 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A10 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A11 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
A12 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Retailer
Licensing
Program
Personnel
Costs Total $ 30,612.25 $ -
Retailer Licensing Program Other Costs
Other Costs Description of Other Costs
FY 23-24
Budget
Amount
FY 23-24
Actual
Expenditures
FY 24-25
Budget
Amount
FY 24-25
Actual
Expenditures
FY 25-26
Budget
Amount
FY 25-26
Actual
Expenditures
Total Budget
Amount
Total Grant
Expenditures
B1 Public Engagement/Permitting Public Engagement/Permitting $ 2,250.00 $ - $ 2,250.00 $ - $ - $ - $ 4,500.00 $ - B2
Consulting and Legal (Ordinances,
Municode/Document
Review/Taxation)
Consulting and Legal
(Ordinances,
Municode/Document
Review/Taxation) $ 30,000.00 $ - $ 30,000.00 $ - $ - $ - $ 60,000.00 $ - B3 City Attorney Legal Peer Review $ 2,000.00 $ - $ 2,000.00 $ - $ - $ - $ 4,000.00 $ - B4 General Supplies General Supplies $ 443.88 $ - $ 443.88 $ - $ - $ - $ 887.75 $ - B5 $ - $ - $ - $ - $ - $ - $ - $ -
B6 $ - $ - $ - $ - $ - $ - $ - $ -
B7 $ - $ - $ - $ - $ - $ - $ - $ -
B8 $ - $ - $ - $ - $ - $ - $ - $ -
B9 $ - $ - $ - $ - $ - $ - $ - $ -
B10 $ - $ - $ - $ - $ - $ - $ - $ -
B11 $ - $ - $ - $ - $ - $ - $ - $ -
B12 $ - $ - $ - $ - $ - $ - $ - $ -
Retailer Licensing Program
Other Costs December 19, 2023 Yreka City Council Agenda 78 of 177 Total $ 69,387.75 $ - Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 14 of 26 ends

Equity Program Costs (if applicable)
Equity Program Personnel Costs
Personnel Classification Role in Project Description
FY 23-24
Base Position
Costs
FY 23-24
Percentage of
Time
FY 23-24
Total
FY 23-24 Actual
Expenditures
FY 24-25
Base Position
Costs
FY 24-25
Percentage of
Time
FY 24-25
Total
FY 24-25
Actual
Expenditures
FY 25-26
Base Position
Costs
FY 25-26
Percentage of
Time
FY 25-
26 Total
FY 25-26 Actual
Expenditures
Total
Budget
Amount
Total Grant
Expenditures
C1 Planning
Permitting - Counseling,
technical assistance $ 181,306.00 0.01
$
1,813.06 $ 181,306.00 0.01 $ 1,813.06 $ - $ 3,626.12 $ - C2 $ - $ - $ - $ - $ - $ - $ - $ -
C3 $ - $ - $ - $ - $ - $ - $ - $ -
C4 $ - $ - $ - $ - $ - $ - $ - $ -
C5 $ - $ - $ - $ - $ - $ - $ - $ -
C6 $ - $ - $ - $ - $ - $ - $ - $ -
C7 $ - $ - $ - $ - $ - $ - $ - $ -
C8 $ - $ - $ - $ - $ - $ - $ - $ -
C9 $ - $ - $ - $ - $ - $ - $ - $ -
C10 $ - $ - $ - $ - $ - $ - $ - $ -
C11 $ - $ - $ - $ - $ - $ - $ - $ -
C12 $ - $ - $ - $ - $ - $ - $ - $ -
Equity Program Personnel
Costs Total $ 3,626.12 $ -
Equity Program Other Costs
Other Costs Description of Other Costs
FY 23-24
Budget
Amount
FY 23-24
Actual
Expenditures
FY 24-25
Budget
Amount
FY 24-25
Actual
Expenditures
FY 25-26
Budget
Amount
FY 25-26
Actual
Expenditures
Total Budget
Amount
Total Grant
Expenditures
D1 Consultant
Program Development,
Translation services,
accessibility, financial fee
(deferral) programs $ 3,000.00 $ - $ 4,500.00 $ - $ - $ - $ 7,500.00 $ - D2 Public Engagement/Permitting
Software platform and Materials
for Multilingual Marketing and
Outreach. Translation Services $ 1,750.00 $ - $ 1,750.00 $ - $ - $ - $ 3,500.00 $ - D3 General Supplies
Information Flyers,
Printing/Copying $ - $ - $ 373.88 $ - $ - $ - $ 373.88 $ - D4 $ - $ - $ - $ - $ - $ - $ - $ -
D5 $ - $ - $ - $ - $ - $ - $ - $ -
D6 $ - $ - $ - $ - $ - $ - $ - $ -
D7 $ - $ - $ - $ - $ - $ - $ - $ -
D8 $ - $ - $ - $ - $ - $ - $ - $ -
D9 $ - $ - $ - $ - $ - $ - $ - $ -
D10 $ - $ - $ - $ - $ - $ - $ - $ -
D11 $ - $ - $ - $ - $ - $ - $ - $ -
D12 $ - $ - $ - $ - $ - $ - $ - $ -
Equity Program Other
Costs Total $ 11,373.88 $ -
Totals
FY 23-24
Budget Total
FY 23-24
Expenditure
Total
FY 24-25
Budget Total
FY 24-25
Expenditure
Total
FY 25-26
Budget Total
FY 25-26
Expenditure
Total
Total Grant
Budget
Amount
Total Grant
Expenditures
$ 54,078.95 $ - $ 60,921.06 $ - $ - $ -
Retailer Licensing
Program Costs Total $ 100,000.00 $ -
Equity Program Costs
Total $ 15,000.00 $ -
Grand Total $ 115,000.00 $ -
December 19, 2023 Yreka City Council Agenda 79 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 15 of 26 ends

Exhibit B1
Budget Detail Justification
The purpose of a budget justification is to explain in paragraph form how specific line items in the budget will contribute to an overall objective or set of objectives. The budget justification should demonstrate how an applicant will maximize cost effectiveness of award expenditures and ensure that the project costs are reasonable and well-informed.
• The budget justification should explain and provide rationale and context for the expenses outlined in the Budget Expenditure Form, making it clear why specific funding amounts are being requested for each line item.
• Describe each line item in the budget and show the calculations used to derive the costs. The information should be sufficiently detailed for the reader to understand the rationale and justification for each cost and need.
• Describe in your plan how many hours of work will be needed to accomplish a task. • For each Fiscal Year (FY 23-24; FY 24-25; and FY 25-26) complete the following sections:

A) Retailer Licensing Program Personnel Costs
B) Retailer Licensing Program Other Costs,
C) Equity Program Personnel Costs (if applicable), and
D) Equity Program Other Cost (if applicable).

Fiscal Year 2023-2024
A. Retailer Licensing Program Personnel Costs
For FY 23-24, for each staff for the retailer licensing program, list the corresponding budget line item from the Budget Expenditure Form (found in Column A), the title and classification, the annual salary/rate, the percentage of time the personnel costs will be incurred, and the total cost. Include all individuals in training, and technical and support staff. If staff has not be hired yet, list the anticipated hiring timeline in the detailed personnel justification below.

Budget
Line
Item
Personnel Title &
Classification
Annual
Salary/Rate Percentage of time Cost
A1 City Planner $181,306 4.0% $7,252.24
A2 City Clerk, ACM $191,880 0.4% $767.52
A3 Finance Director 192,0902 2.0% $4,802.25
TOTAL $12,822.01
Detailed Personnel Justification
In the section below, please provide a detailed list of the roles, responsibilities, and duties each staff will perform to support the project. Include a justification as to why this staff position is needed for the project.

Include information for each position listed above.

The Planning Director will oversee project management, engagement platform project setup, surveys, coordinate activities with consultants, review all documents, engage stakeholders on project.

The Finance Director will setup the financial project tracking, budget, review the expenses, issued check vouchers, reimbursement reporting, and overall monitor fiscal performance. It is expected slightly more time will be spent early in the grant setting up accounting, reimbursement and grant documentation process, than the later part of the grant
The Assistant City Manager is the city clerk and will be responsible for all the agenda material, public noticing, public records request, setup public meetings, social engagement, and other administrative duties.

December 19, 2023 Yreka City Council Agenda 80 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 16 of 26 ends

B. Retailer Licensing Program Other Costs
For FY 23-24, provide other costs related to the retailer licensing program, list the budget line item from the Budget Expenditure Form, a detailed description of the cost, and the FY 23-24 cost amount.

Budget
Line Item Description Cost
B1 Public Engagement and Permitting $2,250.00
B2 Consultant $30,000.00
B3 Legal (contracted) $2,000.00
B4 General Supplies $443.88
TOTAL $34,693.88
Detailed “Other Costs” Justification
In the section below, please provide a detailed description and narrative that explains and supports each cost and justifies the expense as appropriate under this grant. Include information for each cost listed above.

The city’s proposed consultant, SCI consulting group, is familiar with assisting municipal government with cannabis has set up an engagement plan for the City that will include:
(1) Community Outreach, Education and Feedback consisting of community meetings, public information materials (PowerPoint presentations, brochures, flyers, newsletters), online media of e-alerts, enewsletters, and web page updates, and social media. (2) Ordinance Development (Regulatory and Zoning), development of draft ordinance, prepare resolutions, staff reports, and supporting documents for Council adoption, attend Council meetings. (3) Development of draft commercial cannabis tax ordinance and election ballot resolution, full ballot text/ordinance and election materials.
(4) Cost recovery analysis, develop fee study report, prepare documents. (5) Develop application process, application package (forms, procedures, and other required documents) City Attorney (contracted) will be reviewing work product of consultant for proposed ordinances, staff reports, fees, and public notices.

Procurement of supplies that are required direct costs of the grant, printed material, and flyers.

C. Equity Program Personnel Costs
For FY 23-24, for each staff for the equity program, list the corresponding budget line item from the Budget Expenditure Form, the title and classification, the annual salary/rate, the percentage of time the personnel costs will be incurred, and the total cost. Include all individuals in training, and technical and support staff. If staff has not be hired yet, list the anticipated hiring timeline in detailed personnel justification below.

Budget
Line
Item
Personnel Title &
Classification
Annual
Salary/Rate Percentage of time Cost
C1 City Planner $181,306 1% $1,813.06
TOTAL $1,813.06
Detailed Personnel Justification
In the section below, please provide a detailed list of the roles, responsibilities, and duties each staff will perform to support the project. Include a justification as to why this staff position is needed for the project.

Include information for each position listed above.

The Planning Director will oversee project management for equity licensing, engagement platform project setup, surveys, coordinate activities with consultants, review all documents, and engage stakeholders on December 19, 2023 Yreka City Council Agenda 81 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 17 of 26 ends

project.

D. Equity Program Other Costs
For FY 23-24, provide other costs related to the equity program, list the budget line item from the Budget Expenditure Form, a detailed description of the cost, and the FY 23-24 cost amount.

Budget
Line Item Description Cost
D1 Consultant $3,000.00
D2 Public Engagement / Permitting $1,750.00
TOTAL $4,750.00
Detailed “Other Costs” Justification
In the section below, please provide a detailed description and narrative that explains and supports each cost and justifies the expense as appropriate under this grant. Include information for each cost listed above.

Consultant will plan and develop equity program and draft social equity element of ordinance.

Public engagement and permitting costs to facilitate (e.g fee deferral programs) social equity cannabis licensing.

Fiscal Year 2024-2025
A. Retailer Licensing Program Personnel Costs
For FY 24-25, for each staff for the retailer licensing program, list the corresponding budget line item from the Budget Expenditure Form, the title and classification, the annual salary/rate, the percentage of time the personnel costs will be incurred, and the total cost. Include all individuals in training, and technical and support staff. If staff has not be hired yet, list the anticipated hiring timeline in the detailed personnel justification below.

Budget
Line
Item
Personnel Title &
Classification
Annual
Salary/Rate Percentage of time Cost
A1 City Planner $181,306 6.0% $10,878.36
A2 City Clerk, ACM $191,880 1.6% $3,070.08
A3 Finance Director 192,0902 2.4% $3,841.80
TOTAL $17,790.24
Detailed Personnel Justification
In the section below, please provide a detailed list of the roles, responsibilities, and duties each staff will perform to support the project. Include a justification as to why this staff position is needed for the project.

Include information for each position listed above.

The Planning Director will oversee project management, engagement platform project setup, surveys, coordinate activities with consultants, review all documents, engage stakeholders on project.

The Finance Director will continue to oversee the financial project tracking, budget, review expenses, checks, invoices, reimbursement reporting and overall monitor fiscal performance.

The Assistant City Manager is the city clerk and will be responsible for all the agenda material, public noticing, public records request, setup public meetings, social engagement, and other administrative duties.

B. Retailer Licensing Program Other Costs
For FY 24-25, provide other costs related to the retailer licensing program, list the budget line item from the Budget Expenditure Form, a detailed description of the cost, and the FY 24-25 cost amount.

December 19, 2023 Yreka City Council Agenda 82 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 18 of 26 ends

Budget
Line Item Description Cost
B1 Public Engagement and Permitting $2,250.00
B2 Consultant $30,000.00
B3 Legal (contracted) $2,000.00
B4 General Supplies $443.88
TOTAL $34,693.88
December 19, 2023 Yreka City Council Agenda 83 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 19 of 26 ends

Detailed “Other Costs” Justification
In the section below, please provide a detailed description and narrative that explains and supports each cost and justifies the expense as appropriate under this grant. Include information for each cost listed above.

Procurement of supplies that are required direct costs of the grant, and printed material, flyers.

C. Equity Program Personnel Costs
For FY 24-25, for each staff for the equity program, list the corresponding budget line item from the Budget Expenditure Form, the title and classification, the annual salary/rate, the percentage of time the personnel costs will be incurred, and the total cost. Include all individuals in training, and technical and support staff. If staff has not be hired yet, list the anticipated hiring timeline in detailed personnel justification below.

Include information for each position listed above.

D. Equity Program Other Costs
For FY 24-25, provide other costs related to the equity program, list the budget line item from the Budget Expenditure Form, a detailed description of the cost, and the FY 24-25 cost amount.

Budget
Line Item Description Cost
D1 Consultant $4,500.00
D2 Public Engagement / Permitting $1,750.00
D3 Supplies $373.88
TOTAL $6,623.88
Detailed “Other Costs” Justification
December 19, 2023 Yreka City Council Agenda 84 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 20 of 26 ends

In the section below, please provide a detailed description and narrative that explains and supports each cost and justifies the expense as appropriate under this grant. Include information for each cost listed above.

Consultant will plan and develop equity program and draft social equity element of ordinance.

Public engagement and permitting costs to facilitate (e.g. fee deferral programs) social equity cannabis licensing.

Procurement of supplies that are required direct costs of the grant relating to the equity program development.

December 19, 2023 Yreka City Council Agenda 85 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 21 of 26 ends

Exhibit C
Standard Terms and Conditions
This Cannabis Local Jurisdiction Retail Access Grant Program, Phase I Agreement (“Grant Agreement”) is by and between [local jurisdiction] (“Grantee”), and the Department of Cannabis Control (“DCC”), hereinafter jointly referred to as the “Parties” or individually as the “Party.” Unless otherwise specified in these Terms and Conditions, all definitions, rules, guidelines, and requirements specified in the Cannabis Local Jurisdiction Retail Access Grant Program Guidelines, Phase I (Grant Guidelines) issued in August 2023 shall apply to this Agreement.

1. Approval
This Agreement is of no force or effect until signed by both parties. Grant funds may not be used for expenditures that occur outside of the grant program expenditure period of July 1, 2023, through June 30, 2026.

2. Agreement Execution
Unless otherwise prohibited by state law, regulation, or Department of Cannabis Control (DCC) or Grantee policy, the parties agree that an electronic copy of a signed Agreement, or an electronically signed Agreement, has the same force and legal effect as an Agreement executed with an original ink signature. The term "electronic copy of a signed Agreement" refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed Agreement in a portable document format. The term "electronically signed Agreement" means an Agreement that is executed by applying an electronic signature using technology approved by all parties.

3. Representation on Authority of Parties/Signatories
Each person signing this Agreement represents and warrants that they are duly authorized and has legal capacity to execute and deliver this Agreement. Each Party represents and warrants to the other that the execution and delivery of this Agreement and the Performance of such Party’s obligations hereunder have been duly authorized and that this Agreement is a valid and legal agreement binding on such Party and enforceable in accordance with its terms.

4. Assignment
This Agreement is not assignable by the Grantee.

5. Governing Law and Consent to Jurisdiction
This Agreement is governed by and will be interpreted in accordance with the State of California without regard to its conflict of laws rules. Each party hereby irrevocably consents to the exclusive jurisdiction and venue of any state court located within Sacramento County, State of California in connection with any matter arising out of this Agreement.

6. State and Federal Law
It is the responsibility of the Grantee to know and understand which State, Federal, and local laws, regulations, and ordinances are applicable to this Agreement and the Project, as described in Exhibit A. The Grantee shall be responsible for observing and complying with all applicable State and Federal laws and regulations. Failure to comply may constitute a material breach.

7. Grantee Commitments
The Grantee accepts and agrees to comply with all terms, provisions, and conditions of this Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by the Grantee in the application, documents, amendments, and communications in support of its request for funding.

8. Grantee – Representations and Warranties
Grantee represents and warrants that:

A. Grantee is an eligible applicant as set forth in the Grant Guidelines; December 19, 2023 Yreka City Council Agenda 86 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 22 of 26 ends

B. It is not a party to any agreement, written or oral, creating obligations that would prevent it from entering into this Agreement or satisfying the terms herein; C. All of the information in its grant application and all materials submitted to the DCC are true and accurate;
D. Grantee’s governing body has authorized the Grantee to enter into this Agreement and has designated by title the individual authorized to sign the Agreement on behalf of Grantee.

9. Performance and Assurances
The Grantee agrees to perform or cause to be performed all Project work as described in the Scope of Work, and to apply grant funds awarded in this Agreement only to eligible Project uses and costs.

10.Funding Contingency Clause
The funding for this Agreement is allocated pursuant to the Local Jurisdiction Retail Access Grant Funding. Grantee agrees that the DCC’s obligation to pay any sum under this Agreement is contingent upon availability of funds disbursed from the Local Jurisdiction Retail Access Grant Funding. If there is insufficient funding, the DCC shall have the option to either:

A. Terminate this Agreement, whereby no party shall have any further obligations or liabilities under this Agreement, or
B. Negotiate an Agreement amendment with Grantee to reduce the grant award and scope of work to be provided under this Agreement.

11. Indemnification, Warranty and Disclaimer, Limitation of Liability Grantee shall defend, indemnify, and hold harmless DCC, its agents or assigns, from and against all claims, damages, and liabilities (including reasonable attorneys’ fees) arising from this Agreement due to Grantee’s breach of this Agreement or the Grantee’s negligence or willful misconduct. UNDER NO

CIRCUMSTANCES WILL THE STATE OF CALIFORNIA, DCC, ITS AGENTS OR EMPLOYEES BE

LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES THAT ARISE FROM THIS AGREEMENT.

12. Integration
This Agreement (including the exhibits hereto and any documents explicitly incorporated by reference, and any written amendments hereof executed by the Parties) constitutes the entire Agreement between the Parties related to this grant award and supersedes all prior agreements and understandings, oral and written, between the Parties with respect to the grant award described herein.

13. Severability
If any term of this Agreement is to any extent invalid, illegal, or unenforceable such term shall be excluded to the extent of such invalidity, illegality, or unenforceability; all other terms shall remain in full force and effect.

14.Contractors and Consultants
The Grantee assumes full responsibility for its obligation to pay its Contractors and Consultants. The Grantee is responsible to ensure that any and all contractors and consultants it engages to carry out activities under this Agreement shall have the proper licenses and certificates required in their respective disciplines. The Grantee’s use of contractors and consultants shall not affect the Grantee’s responsibilities under this Agreement.

15. No Third-Party Rights
This Agreement creates no rights in and grants no remedies to any third party as a beneficiary of this Agreement.

16. Non-Discrimination Clause
The Grantee agrees that during the performance of this Agreement, it will not discriminate, harass, or December 19, 2023 Yreka City Council Agenda 87 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 23 of 26 ends

allow harassment or discrimination against any employee or applicant for employment based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The Grantee agrees to require the same of all contractors and consultants retained to carry out the activities under this Agreement.

The Grantee agrees that during the performance of this Agreement, the evaluation and treatment of its employees and applicants for employment are free from discrimination and harassment. The Grantee will comply with the provisions of the Fair Employment and Housing Act (Government Code section 12990 et seq.) and the applicable regulations promulgated there under (California Code of Regulations, Title 2, section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. The Grantee will give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining unit or other Agreement. The Grantee must include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.

17. Union Activities
Grantee acknowledges that Government Code Section 16645.2 applies to this Agreement. Pursuant to Government Code Section 16645.2, Grantee certifies that none of the grant award will be used to assist, promote, or deter union organizing. If Grantee makes expenditures to assist, promote, or deter union organizing, it shall maintain records sufficient to show that no portion of the grant award was used for those expenditures. Grantee shall provide those records to the Attorney General upon request.

18. Disputes
The Grantee must continue with the responsibilities under this Agreement during any dispute. In the event of a dispute, the Grantee must file a "Notice of Dispute" with the DCC Office of Grants Management (OGM), identified in Exhibit A, or designee within ten (10) calendar days of discovery of the problem. The Notice of Dispute must contain the Agreement number. Within ten (10) calendar days of receipt of the Notice of Dispute, the DCC Office of Grants Management (OGM) or designee must meet with the Grantee for the purpose of resolving the dispute. In the event of a dispute, the language contained within this Agreement shall be interpreted as to its fair meaning and not strictly for or against any Party.

Notice of termination does not nullify obligations already incurred prior to the date of termination. In the event of Termination for Convenience of this Agreement by DCC, DCC must not recapture all eligible costs and non-cancellable obligations incurred by the Grantee as of the date of termination.

20.Termination for Cause
Either party may terminate this Agreement for cause in the event of a material breach of this Agreement, provided that the non-breaching party provides written notice of the material breach and ten (10) calendar days to cure the breach. If the breach is not cured to the satisfaction of the nonbreaching party within ten (10) calendar days of receipt of notice, this Agreement shall automatically terminate and DCC shall not recapture from the Grantee all eligible documented costs incurred up to the date of the notice of termination, including all non-cancellable obligations.

21. Acceptable Failure to Perform; Force Majeure.

The Grantee shall not be liable for any failure to perform as required by this Agreement, to the extent December 19, 2023 Yreka City Council Agenda 88 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 24 of 26 ends

such failure to perform is caused by any of the following: labor disturbances or disputes of any kind, accidents, or the inability to obtain any required government approval to proceed, civil disorders, acts of aggression, acts of God, energy or other conservation measures, failure of utilities, mechanical breakdowns, materials shortages, disease, pandemics, or similar occurrences.

A. If by reason of force majeure Grantee’s performance hereunder is delayed or prevented, then the performance by Grantee may be extended for the amount of time of such delayer prevention. The term “force majeure” shall mean any fire, flood, earthquake, or public disaster, strike, labor dispute or unrest, embargo, riot, war, insurrection or civil unrest, any act of God, any act of legally constituted authority, or any other cause beyond the Grantee’s control which would excuse Grantee’s performance as a matter of law.

B. Grantee agrees to provide the DCC written notice of an event of force majeure under this Agreement within ten (10) calendar days of the commencement of such event and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure.

22. Material Breach
A material breach for purposes of this Agreement shall include, but not be limited to:

A. Failure to timely furnish the progress reports or other documents requested by DCC relating to the Grantee’s compliance with this Agreement.

B. Material misstatements in any information provided to DCC as part of the application process or after this Agreement is signed.

C. Use of Grant funds not in accordance with the Budget or Project Plan.

D. Funds are not expended by the date established by DCC.

E. Funds are used for an ineligible purpose.

F. Failure to comply with applicable State and Federal laws.

G. Failure to demonstrate progress toward the establishment of a local cannabis retailer licensing program as measured by the specific criteria in the Program Plan.

In the event of a material breach of this Agreement, DCC shall provide in writing a Notice of Breach to the Grantee. The Grantee shall have ten (10) calendar days from receipt of the notice to cure the breach or such longer period as mutually agreed to in writing between the Parties. If Grantee fails to cure the breach within the prescribed timeframe, DCC may do any of the following:

A. Suspend payments.

B. Recapture funds disbursed.

C. Terminate the agreement.

D. Take any other action deemed necessary to protect its interests.

23. Recapture
DCC may recapture funds disbursed in the following circumstances:

A. Funds are not expended by the date established by DCC.

B. Funds are used for an ineligible purpose, including costs and fees related to litigation, payment of fines or other penalties incurred for violations related to unlicensed commercial cannabis activity, and other prohibited uses as determined by DCC.

C. The use of funds does not comply with the application plan submitted to, and approved by, December 19, 2023 Yreka City Council Agenda 89 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 25 of 26 ends

DCC.

D. The local jurisdiction has failed to demonstrate progress toward permitting commercial cannabis retail businesses, as measured by the specific criteria provided in the plan.

E. The local jurisdiction has not complied with or is not in compliance with Item 1115-102-0001 of Section 2.00 of the Budget Act of 2022 or DCC’s Grant Guidelines.

Grantee shall notify DCC of grant funds disbursed but not expended by the date established by DCC within the Agreement. DCC shall provide Grantee with instructions how to return the funds. Under all other circumstances, DCC shall notify Grantee of the circumstance, the amount to be recaptured and provide Grantee with instructions as to how to return funds.

24.Publicity and Acknowledgement
The Grantee agrees that it will acknowledge DCC’s support whenever projects funded, in whole or in part, by this Agreement are publicized in any news media, brochures, publications, audiovisuals, presentations or other types of promotional material and in accordance with the Statement of Work attached to this Agreement. The Grantees may not use DCC’s logo.

25. News Releases/Public Conferences
The Grantee agrees to notify DCC in writing at least two (2) business days before any news releases or public conferences are initiated by the Grantee or its Contractors/Consultants regarding the Project.

26. Amendments
Changes to the Scope of Work, Budget, Project term, or funding amount must be requested in writing to DCC Office of Grants Management (OGM) no less than sixty (60) calendar days prior to the requested implementation date. Any changes are subject to DCC approval and, at its discretion, DCC may choose to accept or deny any changes. If accepted and after negotiations are concluded, the agreed upon changes will be made and become part of this Agreement. No amendments are possible if the Agreement is expired.

27. Reporting Requirements
Grantee must be able to demonstrate to the satisfaction of the DCC that the grant funds were expended for eligible uses and consistent with the activities identified in its application and under the Grant Agreement. The Grantee agrees to comply with all reporting requirements specified in the Grant Guidelines and Application Instructions incorporated by reference to this Agreement.

28. Records, Inspection and Audit
Grantee must maintain books, records, subcontracts, and other material relative to the Project and retain such books, records, subcontracts and other material detailing the expenditure of all grant funds for a period of seven (7) years after the end of the Grant Term. Grantee must require that such books, records, subcontracts, and other material are subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by DCC and the California State Auditor. The Grantee must allow and must require its contractors to allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Grantee agrees to include a similar duty regarding audit, interviews, and records retention in any contract or subcontract related to the performance of this Agreement. The provisions of this section survive the termination of this Agreement.

29. Equipment
Purchase of equipment not included in the approved Budget requires prior approval. The Grantee must comply with applicable state requirements regarding the use, maintenance, disposition, and reporting of equipment.

30.Confidential and Public Records
The Grantee and DCC understand that each party may come into possession of information and data December 19, 2023 Yreka City Council Agenda 90 of 177
Department of Cannabis Control and City of Yreka
Agreement Number: 0000000000000000000098287
Grant Number: G23-017

Page 26 of 26 ends

which may be deemed confidential or proprietary by the person or organization furnishing the information or data. Such information or data may be subject to disclosure under the California Public Records Act (PRA) (Gov. Code, § 7920.000 et seq.). DCC has the sole authority to determine whether the information is releasable. Each party agrees to maintain such information as confidential and notify the other party of any requests for release of information.

31. Conflict of Interest
Grantees are subject to State conflict-of interest laws. The Grantee certifies that its officers, directors, agents, representatives, and employees are in compliance with applicable State and federal conflict of interest laws and will remain in compliance for the useful life of the Project. Public entities are required to have adopted conflict of interest codes and may be required to provide documentation of those codes to DCC.

32. Independent Actor
The Grantee and its agents and employees, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of DCC.

33. Undisbursed Funds Interest
The Grantee is not entitled to interest earned on undisbursed funds.

34.Sections and Other Headings
The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

35. Notice
Within thirty (30) calendar days of the effective date of this Agreement, Grantee shall notify the DCC, in writing, of the name, address, phone number, and email of its contact person for future communication relating to this Agreement. In addition, Grantee agrees to immediately inform the DCC of any changes to the name, address, phone number, and email of its contact person. Unless otherwise specified in this Agreement, any notice required or permitted to be given under this Agreement to the DCC shall be emailed to [email protected].

36. Closeout
The Agreement will be closed out after the completion of the Project or project term, receipt and approval of the final report, and resolution of any performance or compliance issues.

37. Executive Order N-6-22
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine the grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide the grantee advance written notice of such termination, allowing the grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

December 19, 2023 Yreka City Council Agenda 91 of 177
December 19, 2023 Yreka City Council Agenda 92 of 177

CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: Jason Ledbetter, City Manager
Prepared By: Rhetta Hogan, Assistant City Manager
Agenda Title: Resolution 2023-16 of the City Council of the City of Yreka Authorizing State of California Local Jurisdiction Cannabis Retail Access Grant Program Funding.

Meeting Date: March 21, 2023
Discussion:

The State of California, Department of Cannabis Control (DCC) is offering grant funds to assist cities and counties for the development and implementation of a local cannabis retailer licensing program.

The DCC recognizes that by supporting local governments in establishing cannabis retail licensing programs, this grant also seeks to reduce the size of the illicit market and establish sufficient cannabis retail stores statewide to meet existing consumer demand.

The grant application is due by April 28, 2023, and applications are being accepted as of March 10, 2023. Funds are allocated on a first come first serve basis. Grant award announcements are due June 30, 2023 and the City must expend funds by June 30, 2026.

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) establishes a dual (state and local) regulatory structure for the cannabis businesses. And as of February 1, 2023, 327 cities and counties (61%) in California do not allow establishment of any cannabis retailers, whether storefront or non-storefront (delivery), within their jurisdiction. This grant program aims to provide consumers with reliable access to regulated, tested cannabis in the legal market, and reduce demand in the illicit market.

Grant funds are available only to eligible local jurisdictions (city, county, or city and county) located in California. A local jurisdiction is eligible if, as of February 14, 2023, it:
• Does not have a local cannabis retailer licensing program, and • Has a plan to develop and implement a program to issue permits to cannabis retail businesses that establish within its jurisdiction.

The City would be eligible to apply for $100,000 and could be eligible for an additional $15,000 should the application include an equity inclusion licensing component.

December 19, 2023 Yreka City Council Agenda 93 of 177
2 • Other uses that further the intent of the program, as determined by DCC.

Additional grant funding provided in either Phase I or II for adoption of an equity program or issuance of an equity license must be used for the benefit of the cannabis equity program or cannabis equity businesses. Eligible uses for equity bonus funding include:
• Fee waivers, tax relief, or similar direct-financial assistance for equity applicants and licensees • Development of infrastructure to support and/or prioritize equity applicants in the permitting process
• Technical assistance for equity applicants or licensees, including, but not limited to:
o State or local license application assistance
o Assistance with regulatory compliance
• Other uses that support the success of equity applicants or licensees, as determined by DCC Fiscal Impact:

Staff time to prepare the application. Grant funds would cover the administrative and legal cost of implementing a plan focused on the City’s local needs, prior to a statewide allowing storefront distribution center (delivery).

The Medicinal Cannabis Patients' Right of Access Act, which, on and after January 1, 2024, prohibits a local jurisdiction from adopting or enforcing any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by medicinal cannabis businesses, as defined, or that has the effect of prohibiting the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers in a timely and readily accessible manner and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction, as specified. The bill, on and after January 1, 2024, provides that the act may be enforced by an action for writ of mandate brought by a medicinal cannabis patient or their primary caregiver, a medicinal cannabis business, the Attorney General, or any other party otherwise authorized by law. To the extent this bill would impose additional duties on local jurisdictions, the bill would impose a state-mandated local program.

Senate bill 1186 signed into law in by Governor Newson in Sept. 2022. https://www.gov.ca.gov/2022/09/18/governor-newsom-signs-legislation-to-strengthen-californiascannabis-laws/ Recommended Action:

Motion to Adopt Resolution 2023-16 of the City Council of the City of Yreka Authorizing State of California Local Jurisdiction Cannabis Retail Access Grant Program Funding.

Attachments:

Grant Guidelines
December 19, 2023 Yreka City Council Agenda 94 of 177
Cannabis Local Jurisdiction Retail Access
Grant Program
Grant Guidelines
February 2023
December 19, 2023 Yreka City Council Agenda 95 of 177
2 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Contents
I. Grant Overview ........................................................................................................................... 4 Funding Opportunity ...................................................................................................................................... 4 Timeline ................................................................................................................................................................ 5 Questions and Answers Process ................................................................................................................ 5 II. Grant Program Requirements ............................................................................................... 6 Eligible Applicants ............................................................................................................................................ 6 A note on cities and counties ................................................................................................................. 6 Examples of eligible local jurisdictions ............................................................................................... 6 Examples of ineligible local jurisdictions ........................................................................................... 7 Funding Rounds ................................................................................................................................................ 7 Phase I ............................................................................................................................................................. 7 Phase II ........................................................................................................................................................... 8 Example Fund Disbursement ................................................................................................................. 8 Eligible and Ineligible Uses of Funds ....................................................................................................... 9 Eligible Uses and Costs ............................................................................................................................. 9 Ineligible Uses and Costs ......................................................................................................................... 9 III. Application Process ............................................................................................................. 10 Application Requirements .......................................................................................................................... 10 Application Cover Sheet ......................................................................................................................... 10 Attachment A – Permitting Plan .......................................................................................................... 10 Attachment B – Budget Plan ................................................................................................................ 10 Application Submission Process .............................................................................................................. 10 Technical Assistance Available .................................................................................................................. 11 IV. Selection Process .................................................................................................................... 12 Application Review ........................................................................................................................................ 12 Application Processing Order ............................................................................................................... 12 Priority Funding............................................................................................................................................... 12 Priority Review Points: Equity Licensing Opportunities ............................................................. 13 Priority Review Points: Consumption Exceeding Retail Share ................................................ 13 Priority Review Points: Existing Business Licensing Pathways and CEQA Exemptions14 Notification of Grant Award ...................................................................................................................... 14 December 19, 2023 Yreka City Council Agenda 96 of 177
3 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
V. Grant Implementation ........................................................................................................... 15 Grant Agreement ........................................................................................................................................... 15 Requirements Prior To Execution of Grant Agreement ............................................................. 15 Completion of Grant Agreement ........................................................................................................ 15 Fund Disbursement ....................................................................................................................................... 16 Phase I Fund Disbursement .................................................................................................................. 16 Phase II Fund Disbursement ................................................................................................................ 16 Disbursement of Remaining Funds .................................................................................................... 16 Recapture of Funds .................................................................................................................................. 16 Expenditure Deadline ................................................................................................................................... 17 Reporting Requirements ............................................................................................................................. 17 Annual Progress Report .......................................................................................................................... 17 Closeout Report ......................................................................................................................................... 17 Grant Amendments ....................................................................................................................................... 18 Accounting, Records and Audits .............................................................................................................. 18 Remedies of Non-Performance ............................................................................................................... 18 VI. Appendices ............................................................................................................................... 19 Appendix A: Definitions ............................................................................................................................... 19 Appendix B: List of jurisdictions in which consumption of cannabis and cannabis products exceeds the county’s proportional share of legal cannabis retailers ................... 20 Limitations of Data Sources ................................................................................................................. 23 Appendix C: Grant Agreement – Standard Terms and Conditions............................................24 Appendix D: Sample Resolution ............................................................................................................... 32 December 19, 2023 Yreka City Council Agenda 97 of 177
4 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
I. Grant Overview
The Department of Cannabis Control (DCC) announces the availability of $20 million in grant funding for the Cannabis Local Jurisdiction Retail Access Grant. This program provides funding to local governments to support the development and implementation of a local cannabis retailer licensing program.

Available funding: $20 million total, distributed in two phases Question submission deadline: February 24, 2023
Application deadline: April 28, 2023, 5 p.m.

Eligible applicants: Local jurisdictions (city, county, or city and county) that:
• Do not currently have a cannabis retail licensing program • Have a plan to develop and implement a cannabis retail licensing program The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) establishes a dual regulatory structure for cannabis businesses: A person who wishes to engage in commercial cannabis activity is subject to regulation at both the state and local levels.

As of February 1, 2023, 327 cities and counties (61%) in California do not allow establishment of any cannabis retailers, whether storefront or non-storefront (delivery), within their jurisdiction.

This grant program aims to provide consumers with reliable access to regulated, tested cannabis in the legal market, and reduce demand in the illicit market. By supporting local governments in establishing cannabis retail licensing programs, this grant also seeks to reduce the size of the illicit market and establish sufficient cannabis retail stores statewide to meet existing consumer demand.

The grant program is authorized by the Budget Act of 2022, Item 1115-102-0001, found in Assembly Bill 178 (Ting, 2022).

Funding Opportunity
This grant program will provide $20 million in funding, distributed in two phases:
• Phase I: Funding to develop and implement a local cannabis retailer licensing program (up to $10 million total funding; awarded by June 20, 2023) • Phase II: Funding awarded based on the number of cannabis retail permits issued (at least $10 million total funding, maximum $2 million per jurisdiction; awarded on or after June 30, 2023)
Grant program funds are available for expenditure until June 30, 2026.

December 19, 2023 Yreka City Council Agenda 98 of 177
5 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Timeline
Event Date*
Grant Guidelines and Application Instructions
Published
February 14, 2023
Questions and Answers Period Opens February 14, 2023
Questions and Answers Period Due Date
• Questions about the grant program must be
submitted by 5 p.m. on this date.
• Questions must be submitted by email to
[email protected].

February 24, 2023
Questions and Answers Posted
• DCC will post answers to questions submitted during
the Questions and Answers Period.

March 10, 2023
Phase I Application Submission Period Opens
• Applications will be accepted beginning at 8:00 a.m.
on this date.

March 10, 2023
Phase I Last Day to Submit Applications
• Grant applicants must submit applications by 5 p.m.
on this date.
• Technical assistance will be available until 4:00 p.m. on this date.

April 28, 2023
Phase I Grant Award Notification Early June 2023
Phase II Funding Becomes Available for Award June 30, 2023 Last Day for Grant Funding Expenditures June 30, 2026
*Dates are tentative and subject to change.

Questions and Answers Process
Questions regarding the grant program requirements and application will be accepted from February 14, 2023, until February 24, 2023, at 5 p.m. Questions must be emailed to [email protected].

Answers to questions received by the deadline will be published on DCC’s Local Jurisdiction Retail Access Grant Program webpage on March 10, 2023. DCC may group similar or related questions together or reword questions for clarity. The posted Questions and Answers are subject to updates. It is the inquirer’s responsibility to check the webpage for the latest information; individual responses will not be sent.

December 19, 2023 Yreka City Council Agenda 99 of 177
6 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
II. Grant Program Requirements
Eligible Applicants
Grant funds are available only to eligible local jurisdictions (city, county, or city and county) located in California. A local jurisdiction is eligible if, as of February 14, 2023, it:
• Does not have a local cannabis retailer licensing program • Has a plan to develop and implement a program to issue permits to cannabis retail businesses that establish within its jurisdiction
Jurisdictions that have already begun development of a cannabis retailer licensing program may be eligible if it:
• Has not yet begun accepting permit applications for cannabis retailers • Has not yet published permit application forms
• Has not yet permitted any cannabis retailers within their jurisdiction A note on cities and counties
For purposes of cannabis regulation in California, cities and counties are regarded as separate local jurisdictions (except for San Francisco, which is both a city and county). A county is the local authority for businesses within the unincorporated areas of the county.

An incorporated city is the local authority for businesses within its boundaries.

A county is eligible for the grant program if it meets the criteria for eligibility described above, even if there are incorporated cities within that county that already permit cannabis retailers. Conversely, an incorporated city is eligible for the grant program if it meets the eligibility criteria above, even if it is located within a county that already permits cannabis retailers.

Examples of eligible local jurisdictions
• A local jurisdiction that currently prohibits all commercial cannabis activity but has a plan to develop and implement a program to issue permits to commercial cannabis retail businesses within its jurisdiction.
• A local jurisdiction that has passed a law to allow retail cannabis businesses but has not yet begun accepting permit application forms.
• A county that currently prohibits the establishment of cannabis retailers within the unincorporated area of the county, even if incorporated cities within that county already permit cannabis retailers.
• A city that currently prohibits the establishment of cannabis retailers within its boundaries, even if that city is located within a county that already permits cannabis retailers.

December 19, 2023 Yreka City Council Agenda 100 of 177
7 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Examples of ineligible local jurisdictions
• A local jurisdiction that already has a program to permit cannabis retail businesses and has begun accepting applications or has already issued retail licenses. • A local jurisdiction that prohibits cannabis activity and has no plan to develop and implement a program to issue permits to retail businesses within their jurisdiction. • A local jurisdiction that allows cannabis activity and has already issued retail licenses.
• A local jurisdiction that only plans to permit cannabis retailers to deliver from an outside jurisdiction and does not intend to allow the establishment of cannabis retailers within the jurisdiction
Funding Rounds
This grant program will provide $20 million in funding, distributed in two phases:
• Phase I provides funding to support local jurisdictions in the development and implementation of a local cannabis retailer licensing program. Up to $10 million in total funding is available, and awards will be announced by June 20, 2023. • Phase II awards additional funding after the local jurisdiction issues cannabis retailer permits. At least $10 million in total funding is available; awards will be made for each cannabis retailer permit issued, beginning on or after June 30, 2023.

Phase I
During Phase I, an eligible local jurisdiction may receive initial funding to support its development and implementation of a local cannabis retailer licensing program.

Available Funding: Up to $10 million in total funding is available for Phase I. An eligible jurisdiction may receive funding up to the maximum amounts listed in Table A, based on the local jurisdiction’s population as determined by the California Department of Finance’s 2022 Population Estimates for Cities, Counties, and the State1 .

Additional funding will be awarded to local jurisdictions that include a proposal to issue retail licenses to qualified local equity businesses. This funding will be paid with the second disbursement, after the jurisdiction has established a program with explicit provisions to issue licenses to qualified equity retail businesses.

Funding Disbursement: Phase I funding will be disbursed in two payments:
• 1st Payment: The first disbursement of funds will comprise 80% of the initial award and will be distributed upon execution of the Grant Agreement. 1 State of California, Department of Finance, E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change — January 1, 2021 and 2022, Sacramento, California, May 2022.

Note: County populations will be determined by counting only the population in the unincorporated areas of the county, denoted on the spreadsheet as “Balance of County,” under each respective county name.

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8 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
• 2nd Payment: The second disbursement of funds will comprise the remaining 20% of the initial award and will be distributed after the jurisdiction has established the cannabis retail licensing program.

Table A: Maximum Funding Amounts During Phase I
Population 1st Payment
(80%)
2nd Payment
(20%)
Total Phase I
Funding
Phase I
Equity Bonus
0-14,999 $80,000 $20,000 $100,000 $15,000
15,000-29,999 $100,000 $25,000 $125,000 $30,000
30,000-44,999 $120,000 $30,000 $150,000 $45,000
45,000-59,999 $140,000 $35,000 $175,000 $60,000
60,000-74,999 $160,000 $40,000 $200,000 $75,000
75,000-89,999 $180,000 $45,000 $225,000 $90,000
90,000-104,999 $200,000 $50,000 $250,000 $105,000
105,000-119,999 $220,000 $55,000 $275,000 $120,000
120,000-134,999 $240,000 $60,000 $300,000 $135,000
135,000+ $260,000 $65,000 $325,000 $150,000
Phase II
Local jurisdictions that received funding during Phase I are eligible to receive additional awards during Phase II, after the local jurisdiction has begun issuing licenses to cannabis retailers.

Available Funding: At least $10 million will be available for disbursement in Phase II.

Local jurisdictions that received funding during Phase I are eligible to receive an additional $75,000 in grant funds for each cannabis retailer license issued, or $150,000 for each equity cannabis retailer license issued. A maximum of $2 million per jurisdiction can be awarded in Phase II.

Example Fund Disbursement
An eligible local jurisdiction with a population of 80,000 could be granted $225,000 in Phase I (disbursed in two payments of $180,000 and $45,000) and may receive an additional $90,000 in equity bonus funding if they establish a program to issue cannabis retailer licenses to equity applicants.

If this jurisdiction issued four retailer licenses and one equity retailer license, they would be eligible to receive $450,000 ($75,000 per license and $150,000 per equity license) in Phase II.

December 19, 2023 Yreka City Council Agenda 102 of 177
9 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Eligible and Ineligible Uses of Funds
Eligible Uses and Costs
Local jurisdictions must use funding to support the development and implementation of a cannabis licensing program, or for programs or initiatives that directly support cannabis equity businesses.

Eligible costs include, but are not limited, to the following:
• Salaries and benefits for local government staff directly involved in the development or implementation of the cannabis retailer licensing program • Expenses to develop or implement application processes for cannabis retailer licenses, including software costs
• Expenses to conduct stakeholder outreach or community engagement to inform the development of the cannabis retailer licensing program • Local government staff costs or other professional preparation of CEQA-compliant environmental documents for cannabis retailers
• Technical support for applicants and licensees
• Other uses that further the intent of the program, as determined by DCC Additional grant funding provided in either Phase I or II for adoption of an equity program or issuance of an equity license must be used for the benefit of the cannabis equity program or cannabis equity businesses. Eligible uses for equity bonus funding include:
• Fee waivers, tax relief, or similar direct-financial assistance for equity applicants and licensees
• Development of infrastructure to support and/or prioritize equity applicants in the permitting process
• Technical assistance for equity applicants or licensees, including, but not limited to:
o State or local license application assistance
o Assistance with regulatory compliance
• Other uses that support the success of equity applicants or licensees, as determined by DCC
Ineligible Uses and Costs
The following activities, products or costs are ineligible uses under the grant program and will not be allowed:
• Local government costs or initiatives unrelated to the development or implementation of the cannabis retailer licensing program • Costs or fees related to litigation
• Payment of fines or other penalties incurred for violations of environmental laws and regulations, or related to unlicensed commercial cannabis activity • Costs incurred outside of the grant funding expenditure period • Acquisitions where the purchase price is greater than the appraised value • Other prohibited uses, as determined by DCC
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10 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
III. Application Process
Application Requirements
Grant applicants must submit a complete application to DCC, which includes:
• Application Cover Sheet (DCC-2625)
• Attachment A – Permitting Plan (DCC-2626)
• Attachment B – Budget Plan (DCC-2627)
Application Cover Sheet
The Application Cover Sheet (DCC-2625) describes basic information about the local jurisdiction, including the applicant information, grant funds requested, the jurisdiction’s current program status, and any adopted local cannabis laws.

Attachment A – Permitting Plan
The Permitting Plan (DCC-2626) describes the jurisdiction’s plan to establish a cannabis retailer licensing program. The plan must include timelines for program adoption, which will be used to assess whether the jurisdiction has made measurable progress toward permitting cannabis retail businesses, as required by the Budget Act of 2022. The permitting plan also describes the jurisdiction’s eligibility for priority review.

Jurisdictions applying for funding in connection with proposals to assist equity applicants must also complete the Equity Program Plan section of the form, which describes the local government’s plan to adopt a program that prioritizes and/or facilitates the issuance of licenses to qualified equity businesses. In establishing this program, the jurisdiction may adopt the state’s definition of “qualified equity applicant or licensee” (CCR Title 4, §15014.1(a)).

If selected for a grant award, Attachment A will be incorporated into the Grant Agreement as the Scope of Work.

Attachment B – Budget Plan
The Budget Plan (DCC-2627) estimates how Phase I funding will be used to support the creation of the local cannabis retailer licensing program and issuance of retail licenses.

All grant program expenditures must be for activities, products, and costs that have been included in an approved Application proposal and Budget. Approved expenditures must only be incurred after the local jurisdiction enters into a Grant Agreement (see Section V).

No expenses can be incurred after June 30, 2026.

Application Submission Process
Applications must be submitted to [email protected] by 5 p.m. on April 28, 2023.

Applicants must use the form templates provided by DCC.

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11 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Applicants may modify their application by withdrawing their application and resubmitting a new application. The withdrawal request must be submitted by the applicant and emailed to [email protected]. The new application must be received before the application deadline (5 p.m. on April 28, 2023) to be considered.

The grant applicant is responsible for all costs associated with developing the application or incurred in anticipation of award or the agreement. Grant applicants should carefully review their documents for errors and adherence to the application requirements. DCC is not responsible for any errors or defects in the submitted application, and applicants should not rely on DCC during the review process to discover and report to the applicant any such defects or errors.

Technical Assistance Available
Resources are available to assist local jurisdictions with understanding the grant program requirements and application process:
• Visit the Local Jurisdiction Retail Access Grant Program webpage for additional information about this grant program, including answers to questions submitted during the Q&A period.
• Contact the DCC Office of Grants Management at [email protected] with any questions.

December 19, 2023 Yreka City Council Agenda 105 of 177
12 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
IV. Selection Process
Application Review
Grant applications will be screened for eligibility and completeness. Applications will be disqualified if they are:
• Submitted by an ineligible applicant
• Incomplete
• Received after the application deadline
DCC may request clarification regarding the submitted application, as needed, during the review process. Applicants will be notified if they do not meet the eligibility requirements and will be provided five business days to respond before a final determination of disqualification is made.

Application Processing Order
Eligible applications will be processed in the order that they are received, beginning with those that receive the highest number of priority review points and ending with those receiving no priority points (as described below), until funding is exhausted. Applications with six priority review points will be processed first, followed by applications with five priority review points, then four, and so on. Applications with no priority review points will be processed last.

If a Grant applicant withdraws their application to make modifications and submits a new application, the date the new application is received by DCC will be used in determining the processing order.

Priority Funding
This grant program prioritizes funding to local jurisdictions that propose to assist cannabis equity businesses, address gaps in consumer access to safe and regulated cannabis, or plan to permit cannabis retailers through existing business permitting processes. To accomplish this, eligible applications will be awarded priority review points, as follows:
• Two (2) priority review points will be awarded to local jurisdictions whose proposed retail program contains provisions to assist equity applicants. • Two (2) priority review points will be awarded to local jurisdictions in which consumption of cannabis and cannabis products in the county exceeds that county’s proportional share of legal cannabis retailers. • One (1) priority review point will be awarded to local jurisdictions whose proposed retail program will license cannabis retail businesses through the local jurisdiction’s existing non-cannabis-business license process.

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Grant Guidelines – February 2023
• One (1) priority review point will be awarded to local jurisdictions whose proposed retail program will license cannabis retail business projects only that are eligible for a categorical exemption under the California Environmental Quality Act (CEQA).

Priority Review Points: Equity Licensing Opportunities
DCC is committed to providing equity to communities harmed by past cannabis criminalization through local pathways to licensure and business success. Local jurisdictions that submit a plan to incorporate equity into their permitting process will be eligible for two (2) priority review points.

Additional funding will be awarded in both phases of this grant program for local governments that adopt equity programs and issue cannabis retailer licenses to equity businesses.

Priority Review Points: Consumption Exceeding Retail Share This grant program aims to provide consumers with better access to regulated, tested cannabis and reducing the need for consumers to turn to the illicit market. To achieve this aim, priority review points will be allocated for areas of the state in which the proportion of licensed cannabis retail outlets is low compared to its share of consumer consumption, or in which no legal retailers are established (as shown in Appendix B).

Two (2) priority review points will be allocated to the following counties or cities located within the counties, where grant-eligible:
• Amador County
• Butte County
• Contra Costa County
• Fresno County
• Glenn County
• Kern County
• Lassen County
• Madera County
• Orange County
• Placer County
• San Benito County
• San Diego County
• San Joaquin County
• San Mateo County
• Santa Clara County
• Sutter County
• Tehama County
• Yuba County
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14 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Priority Review Points: Existing Business Licensing Pathways and CEQA Exemptions
The experience of local jurisdictions that have proactively regulated cannabis has shown that:
• Establishing cannabis-specific licensing programs can be resource and time intensive
• Utilizing existing permitting and review pathways can simplify cannabis permitting processes
To support local jurisdictions in expeditiously developing cannabis retailer licensing programs, one (1) priority review point will be awarded to jurisdictions that propose to license cannabis businesses through existing business permitting process already in existence for non-cannabis businesses.

Additionally, one (1) priority review point will be awarded to jurisdictions whose proposed retail program will license cannabis retail business projects only that are eligible for categorical exemption under the California Environmental Quality Act (CEQA).

Notification of Grant Award
DCC will announce grant awards in early June 2023. Successful applicants will receive a Grant Award Notification and must enter into a Grant Agreement to receive funds.

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Grant Guidelines – February 2023
V. Grant Implementation
Grant Agreement
Grant recipients must enter into a Grant Agreement which specifies terms and conditions relevant to the receipt and use of grant funding. The following items will be incorporated by reference into the Grant Agreement:
• The content of this solicitation and related terms and conditions (see Appendix C:

Grant Agreement – Standard Terms and Conditions)
• The grant recipient’s submitted application materials, including any clarifications provided during the review process, which will comprise the Scope of Work Both DCC and the selected applicant must sign the Grant Agreement to execute it. An executed Grant Agreement must be in place before funding will be disbursed or expenditures may begin.

The term of the grant agreement will be July 1, 2023, to June 30, 2026.

Requirements Prior To Execution of Grant Agreement
Prior to the execution of the Grant Agreement, the local jurisdiction will be required to submit a resolution of its governing body (i.e., the county board of supervisors or city council) that commits the entity to:
• Comply with the requirements of the Grant Agreement
• Accept grant funds from DCC
The resolution may be written so as to allow for grant amendments without governing body approval. A sample resolution is included in Appendix D.

As an alternative to submitting a resolution of its governing body, the local jurisdiction may instead show that the governing body has previously authorized another decisionmaker within the local jurisdiction to make these commitments on behalf of the local jurisdiction. In this circumstance, the local jurisdiction must submit evidence of this authorization (for example, a local ordinance delegating authority to the relevant decisionmaker within the local jurisdiction), as well as a commitment from the relevant decisionmaker on behalf of the local jurisdiction.

Completion of Grant Agreement
Signed Grant Agreements, Payee Data Form (STD. 204), and approved governing board resolutions or authorizations must be returned to DCC no later than October 1, 2023. If these are not returned by the deadline, DCC, in its sole discretion, may withdraw the award and redirect funds to another eligible applicant, as needed.

December 19, 2023 Yreka City Council Agenda 109 of 177
16 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Fund Disbursement
Phase I Fund Disbursement
DCC will distribute the first Phase I funds directly to a local jurisdiction after the award process is completed and the local jurisdiction has entered into the Grant Agreement.

Payments will be made through the State Controller’s Office.

Phase I funding will be disbursed in two payments:
• 1st Payment: 80% of the initial award, distributed upon execution of the Grant Agreement
• 2nd Payment: The remaining 20% of the initial award (including equity bonus funding, if eligible) distributed after the jurisdiction has established the cannabis retail licensing program
The grant recipient must notify DCC of its eligibility to receive the second payment by submitting the Payment Request Form (DCC-2630) and an updated budget expenditures report to [email protected], no later than October 31, 2025. If the second payment includes equity bonus funding, the jurisdiction must include an updated Budget Form detailing how the equity bonus funds will be spent.

Phase II Fund Disbursement
Jurisdictions may request Phase II funding disbursements after the issuance of a cannabis retailer permit. To request Phase II funding, the jurisdiction must submit the Payment Request Form (DCC-2630).

A local jurisdiction may not receive Phase II funding for the issuance of a retailer license until the locally-licensed business has submitted a complete state license application. A local jurisdiction may not be awarded more than $2,000,000 for retailer licenses issued in Phase II.

After DCC verifies eligibility for the Phase II payment, the funding will be scheduled for disbursement. Approved Phase II funding awards will be processed for payment in September and April of each year of the grant program. Phase II funding will be awarded until the funds are depleted. Payments will be made through the State Controller’s Office.

Disbursement of Remaining Funds
Grant program funds not originally distributed, and funds recaptured by DCC, may be distributed to any eligible local jurisdiction, as determined by DCC.

Recapture of Funds
Any remaining amounts of funding allocated to local jurisdictions that are not expended by June 30, 2026, pursuant to each local jurisdiction’s approved application by the Department of Cannabis Control, shall revert to, and be paid and deposited in, the General Fund.

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17 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Expenditure Deadline
Awarded grant funds must be expended by June 30, 2026. All eligible expenses incurred by the recipient must be within the grant term of July 1, 2023, to June 30, 2026. Any funds that are not expended as of July 1, 2026, are returned to the Department of Cannabis Control, and shall revert back to the state’s General Fund.

Reporting Requirements
Annual Progress Report
The Grantee must provide an Annual Progress Report on December 1 for each year of grant expenditures. The Annual Progress Report:
• Describes grant program expenditures and activities occurring during the calendar year, and
• Must demonstrate that the grant program funds were expended for eligible uses and consistent with the activities identified in the Grant Agreement.

The progress report must be submitted using the Annual Progress Report (DCC-2628) template provided by DCC.

The Annual Progress Report must be submitted for any year in which grant program funds were expended, even if no funds remain by the submission due date. DCC may request additional updates during the grant term as needed to assess the validity of expenditures or progress towards milestones outlined in the Grant Agreement.

Table B: Annual Progress Report Submission Dates
Reporting Timeframe Annual Report Deadline
July 1 – December 31, 2023 December 1, 2023
January 1 – December 31, 2024 December 1, 2024
January 1 – December 31, 2025 December 1, 2025
January 1 – June 30, 2026 December 1, 2026
Closeout Report
If the Grantee receives funding in Phase I but does not establish a local cannabis retailer licensing program by October 31, 2025, the Grantee must complete and submit a Closeout Report (DCC-2629).

The Closeout Report must include the following information:
• The status of cannabis retail within the jurisdiction • A detailed description of the reason(s) the local jurisdiction did not establish a cannabis retailer licensing program
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Grant Guidelines – February 2023
The Closeout Report must be submitted with the final Annual Progress Report form. The Grantee must provide a closeout report to DCC whether the grant term has expired or not, or the Grantee has expended the grant program funds before the end of the grant term.

Grantees that fail to establish a local cannabis retailer licensing program by October 31, 2025, must return any unused Phase I funds to DCC in a timely manner and will not be eligible for Phase II funds.

Grant Amendments
Requests to amend the Grant Agreement must be submitted by the Grantee in writing to [email protected] using the Grant Amendment Form (DCC-2607). Requests must include revised grant agreement exhibits and an explanation of reason for the requested change.

Accounting, Records and Audits
The Grantee must maintain records of receipts and expenditures of grant funds for a minimum of seven (7) years after the grant term end date, or final payment of any grant funds, whichever is later. Records are subject to audit by DCC, the California State Auditor, the California Department of Finance or relevant state auditing authorities.

Remedies of Non-Performance
DCC may recapture funds that have been disbursed to the Grantee in any of the following circumstances:
• Funds are not expended by the deadline established by DCC • Funds are used for an ineligible purpose
• The use of funds does not align with the application materials submitted to DCC and incorporated into the Grant Agreement
• The Grantee fails to demonstrate progress toward establishing a cannabis retail licensing program, as measured by the plan and timeframes outlined in the application materials submitted to DCC and incorporated into the Grant Agreement.
• The Grantee is not in compliance with Item 1115-102-0001 of Section 2.00 of the Budget Act of 2022 or DCC’s Grant Guidelines.

Grantees must notify DCC of any grant funds that have not been expended by the deadlines outlined in the Grant Agreement by emailing [email protected]. DCC will reissue funds to other eligible applicants, where possible.

December 19, 2023 Yreka City Council Agenda 112 of 177
19 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
VI. Appendices
Appendix A: Definitions
The following terms used in this document are defined below, unless the context clearly indicates otherwise:
a) “Eligible local jurisdiction” means a city or county that does not have a local cannabis retailer licensing program and that has a plan to develop and implement a program to issue permits to commercial cannabis retail businesses within the jurisdiction of the city or county.
b) “Equity licensee” means a person who has applied for and been issued a license pursuant to a local cannabis retailer program and meets the definition of a local equity applicant or licensee established by that jurisdiction or the definition established by the Department of Cannabis Control for the fee waiver program described in Section 26249 of the Business and Professions Code. c) “Grant applicant” refers to either the local jurisdiction applying for funding under the grant program, or to a person authorized by the local jurisdiction to complete an application on behalf of the local jurisdiction (this is usually the primary contact listed on the application, but could also be the secondary contact, signature authority, consultant, or other authorized person).
d) “Grantee” means a local jurisdiction that is the recipient of funds pursuant to the grant program.
e) “Local equity applicant” means an applicant who has submitted, or will submit, an application to a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction’s local equity program.
f) “Local cannabis retailer licensing program” means a local jurisdiction’s program to permit a person or entity to establish a commercial cannabis retail business within the jurisdictional boundaries of that jurisdiction.
g) “Local jurisdiction” means a city, county, or city and county.

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Grant Guidelines – February 2023
Appendix B: List of jurisdictions in which consumption of cannabis and cannabis products exceeds the county’s proportional share of legal cannabis retailers The data below is an analysis to estimate cannabis consumption in California. This data reflects data from the Substance Abuse and Mental Health Services Administration’s (SAMHSA) National Survey on Drug Use and Health (NSDUH), population data from the United States Census Bureau and estimated cannabis use rates per capita.

The NSDUH reports past month usage (regular consumers) and past year usage (casual consumers) of cannabis. Consistent with previous state estimates, this analysis assumes regular consumers consume an average of 21 grams of cannabis flower or equivalent cannabis product per month; it assumes casual consumers consume an average of 3.5 grams per month. These values are conservative and may be higher than actual figures.

Based on this analysis, the average total consumption of cannabis and cannabis products per licensed cannabis retailer is approximately 2,359 pounds. The counties in orange and with an asterisk by their name are:
• Those in which consumption amount per licensed retailer is higher than the average, or • Those in which no legal retailers exist and consumption is higher than the average.

In these counties, the number of licensed cannabis retailers are low compared to its share of consumer consumption, indicating that consumers in these areas would benefit from expanded access to licensed retail cannabis.

County # of Licensed
Cannabis Retailers
Located in the
County (As of
January 1, 2023)
Total Consumption
of Cannabis and
Cannabis Products
(in lbs.)
Total Consumption
Share (%)
Total Consumption
(lbs.) / Retailer
Alameda 215 142,982 5.32% 665
Alpine 0 90 0.00% N/A
Amador* 1 2,904 0.11% 2,904
Butte* 0 24,837 0.92% N/A
Calaveras 5 3,216 0.12% 643
Colusa 2 2,267 0.08% 1,134
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Grant Guidelines – February 2023
Contra Costa* 22 89,164 3.31% 4,053
Del Norte 6 3,100 0.12% 517
El Dorado 11 13,625 0.51% 1,239
Fresno* 17 58,003 2.16% 3,412
Glenn* 0 2,992 0.11% N/A
Humboldt 47 15,851 0.59% 337
Imperial 16 10,516 0.39% 657
Inyo 3 932 0.03% 311
Kern* 13 40,445 1.50% 3,111
Kings 5 6,957 0.26% 1,391
Lake 7 7,621 0.28% 1,089
Lassen* 1 3,940 0.15% 3,940
Los Angeles 496 753,199 28.00% 1,519
Madera* 0 8,384 0.31% N/A
Marin 9 17,235 0.64% 1,915
Mariposa 0 1,062 0.04% N/A
Mendocino 30 10,295 0.38% 343
Merced 10 14,570 0.54% 1,457
Modoc 1 1,004 0.04% 1,004
Mono 5 910 0.03% 182
Monterey 28 37,802 1.41% 1,350
Napa 7 9,063 0.34% 1,295
Nevada 5 7,551 0.28% 1,510
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Grant Guidelines – February 2023
Orange* 52 152,161 5.66% 2,926
Placer* 1 27,775 1.03% 27,775
Plumas 0 2,320 0.09% N/A
Riverside 169 147,892 5.50% 875
Sacramento 119 113,671 4.23% 955
San Benito* 1 5,477 0.20% 5,477
San Bernardino 54 116,278 4.32% 2,153
San Diego* 75 227,633 8.46% 3,035
San Francisco 86 91,680 3.41% 1,066
San Joaquin* 19 48,021 1.79% 2,527
San Luis Obispo 24 27,174 1.01% 1,132
San Mateo* 18 58,359 2.17% 3,242
Santa Barbara 35 26,269 0.98% 751
Santa Clara* 18 102,502 3.81% 5,695
Santa Cruz 24 25,724 0.96% 1,072
Shasta 10 20,364 0.76% 2,036
Sierra 0 373 0.01% N/A
Siskiyou 8 5,033 0.19% 629
Solano 24 28,810 1.07% 1,200
Sonoma 40 32,485 1.21% 812
Stanislaus 29 29,689 1.10% 1,024
Sutter* 0 6,549 0.24% N/A
Tehama* 1 7,098 0.26% 7,098
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Grant Guidelines – February 2023
Trinity 2 1,895 0.07% 948
Tulare 16 20,510 0.76% 1,282
Tuolumne 2 3,919 0.15% 1,960
Ventura 32 49,339 1.83% 1,542
Yolo 7 15,300 0.57% 2,186
Yuba* 2 5,191 0.19% 2,596
Limitations of Data Sources
The NSDUH data underlying this analysis has limitations common to survey research, including the potential for sample biases and weighting errors. The data are based on self-reports of cannabis use, and their value depends on respondents’ truthfulness and memory. While NSDUH procedures were designed to address such concerns, some underreporting or overreporting may take place. Learn more about the strengths and limitations of NSDUH data.

SAMHSA provides state and substate regional data from the NSDUH. In some cases, these substate regions contain multiple counties. Adult population data from the United States Census Bureau was used to extrapolate cannabis consumption levels by county from the broader regional data. Additionally, some regionalized data is not available due to data collection challenges during the COVID-19 pandemic. Where that is the case, the estimates in this analysis represent projected levels of cannabis consumption using historical averages and trends combined with the most recent available NSDUH data.

Despite these limitations, this data analysis serves as a good estimate of the relative share of total cannabis consumption in counties, as needed for the administration of this grant program.

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Grant Guidelines – February 2023
Appendix C: Grant Agreement – Standard Terms and Conditions

1. Approval
This Agreement is of no force or effect until signed by both parties. Grant funds may not be used for expenditures made prior to the date of approval.

4. Assignment
This Agreement is not assignable by the Grantee.

7. Grantee Commitments
The Grantee accepts and agrees to comply with all terms, provisions, and conditions of this Agreement, including all incorporated documents, and to fulfill all December 19, 2023 Yreka City Council Agenda 118 of 177
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Grant Guidelines – February 2023
assurances, declarations, representations, and statements made by the Grantee in the application, documents, amendments, and communications in support of its request for funding.

8. Grantee – Representations and Warranties
Grantee represents and warrants that:

A. Grantee is an eligible applicant as set forth in the Grant Guidelines; B. It is not a party to any agreement, written or oral, creating obligations that would prevent it from entering into this Agreement or satisfying the terms herein;
C. All of the information in its grant application and all materials submitted to the Department are true and accurate;
D. Grantee’s governing body has authorized the Grantee to enter into this Agreement and has designated by title the individual authorized to sign the Agreement on behalf of Grantee.

10.Funding Contingency Clause
The funding for this Agreement is allocated pursuant to the Local Jurisdiction Retail Access Grant Funding. Grantee agrees that the Department’s obligation to pay any sum under this Agreement is contingent upon availability of funds disbursed from the Local Jurisdiction Retail Access Grant Funding. If there is insufficient funding, the Department shall have the option to either:

CIRCUMSTANCES WILL THE STATE OF CALIFORNIA, DCC, ITS AGENTS OR

EMPLOYEES BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES THAT ARISE FROM THIS AGREEMENT.

December 19, 2023 Yreka City Council Agenda 119 of 177
26 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023

15. No Third-Party Rights
This Agreement creates no rights in and grants no remedies to any third party as a beneficiary of this Agreement.

16. Non-Discrimination Clause
The Grantee agrees that during the performance of this Agreement, it will not discriminate, harass, or allow harassment or discrimination against any employee or applicant for employment based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The Grantee agrees to require the same of all contractors and consultants retained to carry out the activities under this Agreement.

The Grantee agrees that during the performance of this Agreement, the evaluation and treatment of its employees and applicants for employment are free from discrimination and harassment. The Grantee will comply with the provisions of the Fair Employment and Housing Act (Government Code section 12990 et seq.) and the applicable regulations promulgated there under (California Code of Regulations, Title 2, section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. The Grantee will give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining unit or other Agreement. The Grantee must include the December 19, 2023 Yreka City Council Agenda 120 of 177
27 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.

If Grantee makes expenditures to assist, promote, or deter union organizing, it shall maintain records sufficient to show that no portion of the grant award was used for those expenditures. Grantee shall provide those records to the Attorney General upon request.

19. Termination for Convenience
This Agreement may be terminated by either party upon written notice. Notice of termination must be delivered to the other party at least thirty (30) calendar days prior to the intended date of termination. Notice of termination does not nullify obligations already incurred prior to the date of termination. In the event of Termination for Convenience of this Agreement by DCC, DCC must not recapture all eligible costs and non-cancellable obligations incurred by the Grantee as of the date of termination.

20.Termination for Cause
Either party may terminate this Agreement for cause in the event of a material breach of this Agreement, provided that the non-breaching party provides written notice of the material breach and ten (10) calendar days to cure the breach. If the breach is not cured to the satisfaction of the non-breaching party within ten (10) calendar days of receipt of notice, this Agreement shall automatically terminate and DCC shall not recapture from the Grantee all eligible documented costs incurred up to the date of the notice of termination, including all non-cancellable obligations.

21. Acceptable Failure to Perform; Force Majeure
The Grantee shall not be liable for any failure to perform as required by this Agreement, to the extent such failure to perform is caused by any of the following:
labor disturbances or disputes of any kind, accidents, or the inability to obtain any required government approval to proceed, civil disorders, acts of aggression, acts December 19, 2023 Yreka City Council Agenda 121 of 177
28 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
of God, energy or other conservation measures, failure of utilities, mechanical breakdowns, materials shortages, disease, pandemics, or similar occurrences.

B. Grantee agrees to provide the Department written notice of an event of force majeure under this Agreement within ten (10) calendar days of the commencement of such event and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure.

22. Material Breach
A material breach for purposes of this Agreement shall include, but not be limited to:

A. Failure to timely furnish the progress reports or other documents requested by DCC relating to the Grantee’s compliance with this Agreement.

B. Material misstatements in any information provided to DCC as part of the application process or after this Agreement is signed.

C. Use of Grant funds not in accordance with the Budget or Project Plan.

D. Funds are not expended by the date established by DCC.

E. Funds are used for an ineligible purpose.

F. Failure to comply with applicable State and Federal laws.

G. Failure to demonstrate progress toward the establishment of a local cannabis retailer licensing program as measured by the specific criteria in the Program Plan.

A. Suspend payments.

B. Recapture funds disbursed.

C. Terminate the agreement.

December 19, 2023 Yreka City Council Agenda 122 of 177
29 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
D. Take any other action deemed necessary to protect its interests.

23. Recapture
DCC may recapture funds disbursed in the following circumstances:

A. Funds are not expended by the date established by DCC.

C. The use of funds does not comply with the application plan submitted to, and approved by, DCC.

D. The local jurisdiction has failed to demonstrate progress toward permitting commercial cannabis retail businesses, as measured by the specific criteria provided in the plan.

E. The local jurisdiction has not complied with or is not in compliance with Item 1115-102-0001 of Section 2.00 of the Budget Act of 2022 or DCC’s Grant Guidelines.

December 19, 2023 Yreka City Council Agenda 123 of 177
30 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023

27. Reporting Requirements
Grantee must be able to demonstrate to the satisfaction of the Department that the grant funds were expended for eligible uses and consistent with the activities identified in its application and under the Grant Agreement. The Grantee agrees to comply with all reporting requirements specified in the Grant Guidelines and Application Instructions incorporated by reference to this Agreement.

30.Confidential and Public Records
The Grantee and DCC understand that each party may come into possession of information and data which may be deemed confidential or proprietary by the person or organization furnishing the information or data. Such information or data may be subject to disclosure under the California Public Records Act (PRA) (Gov. Code, § 7920.000 et seq.). DCC has the sole authority to determine whether the information is releasable. Each party agrees to maintain such information as confidential and notify the other party of any requests for release of information.

December 19, 2023 Yreka City Council Agenda 124 of 177
31 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023

32. Independent Actor
The Grantee and its agents and employees, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of DCC.

33. Undisbursed Funds Interest
The Grantee is not entitled to interest earned on undisbursed funds.

34.Sections and Other Headings
The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

35. Notice
Within thirty (30) calendar days of the effective date of this Agreement, Grantee shall notify the Department, in writing, of the name, address, phone number, and email of its contact person for future communication relating to this Agreement. In addition, Grantee agrees to immediately inform the Department of any changes to the name, address, phone number, and email of its contact person. Unless otherwise specified in this Agreement, any notice required or permitted to be given under this Agreement to the Department shall be emailed to [email protected].

36. Closeout
The Agreement will be closed out after the completion of the Project or project term, receipt and approval of the final report, and resolution of any performance or compliance issues.

December 19, 2023 Yreka City Council Agenda 125 of 177
32 Cannabis Local Jurisdiction Retail Access Grant
Grant Guidelines – February 2023
Appendix D: Sample Resolution
RESOLUTION OF [INSERT NAME OF LOCAL GOVERNING BODY] AUTHORIZING

STATE OF CALIFORNIA LOCAL JURISDICTION CANNABIS RETAIL ACCESS GRANT PROGRAM FUNDING.

The [insert name of local governing body] finds:

WHEREAS, the California Legislature has appropriated funds for award by the California Department of Cannabis Control to eligible local jurisdictions to develop and implement a cannabis retailer licensing program;
WHEREAS, [insert name of local government body] has a plan to develop and implement a program to issue permits to commercial cannabis retail businesses; WHEREAS, [insert name of local government body] has determined that it will use grant funds from the Department of Cannabis Control to establish a local cannabis retailer licensing program as described in its application for grant funds.

NOW, THEREFORE, BE IT RESOLVED that the [insert title of designated official] of the [insert city or county name] is authorized to execute by electronic signature on behalf of [insert name of local government body] the grant agreement with the Department of Cannabis Control, including any extensions or amendments thereof and any subsequent grant agreement with Department of Cannabis Control in relation thereto.

BE IT FURTHER RESOLVED that the [insert name of local government body] agrees to abide by the terms and conditions of the Grant Agreement as set forth by the Department of Cannabis Control.

Passed, approved, and adopted by the [insert name of local government body] in a meeting thereof held on [insert date] by the following:

VOTE
Ayes:

Nays:

Absent:

Signature: ____________________________________ Date: ___________ Typed Name and Title: ___________________________________________ ATTEST
Signature: ____________________________________ Date: ___________ Typed Name and Title: ___________________________________________ December 19, 2023 Yreka City Council Agenda 126 of 177

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December 19, 2023 Yreka City Council Agenda 130 of 177

CITY COUNCIL AGENDA MEMORANDUM
TO: Yreka City Council
FROM: Jason Ledbetter, City Manager
AGENDA TITLE: Approval of Professional Services Agreement with SCI-CG for establishment of cannabis licensing program.

MEETING DATE: 12/19/2023
Recommended Action: Professional Services Agreement (PSA) with SCI-CG for establishment of cannabis licensing program.

Discussion: City staff applied for and received a retail cannabis licensing program grant award. City staff has reviewed qualified contractors experienced with retail cannabis licensing programs and is recommending awarding the contract to SCI-CG for establishment the retail licensing program to assist in completing the grant requirements.

The contract value is $60,500 plus incidental costs incurred for travel and other of our pocket expenses limits to $3,000 without prior approval.

The contract as presented remains in draft form. SCI-CG has presented an indemnity provision that changes in the City’s standard PSA terms. This provision is being negotiated and recommended to be approved to protect the City from contractor’s own negligence. It is expected that agreement on the proposed modifications will be reached in the near future. All other terms and conditions have been accepted by SCI-CG.

Attachments:
(1) Professional Services Agreement - DRAFT
(2) SCI-CG Proposal
December 19, 2023 Yreka City Council Agenda 131 of 177

D R A F T
Professional Services Agreement
(City of Yreka / SCI Consulting Group)

Page 1 of 15 ends

Approved for Use: __/__/2023
Error! Unknown document property name.

PROFESSIONAL SERVICES AGREEMENT FOR CONSULTANT SERVICES (City of Yreka / SCI Consulting Group)

1. IDENTIFICATION
This PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into as of the last date indicated below by and between the City of Yreka, a California municipal corporation (“City”), and SCI Consulting Group, a California licensed S Corporation(“Consultant”) (collectively, “parties”).

2. RECITALS

2.1 City has determined that it requires the following professional services from a consultant: Cannabis Implementation Services.

2.2 Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.

2.3 Consultant represents that it has no known relationships with third parties, City Council members, or employees of City which would (1) present a conflict of interest with the rendering of services under this Agreement under Government Code Section 1090, the Political Reform Act (Government Code Section 81000 et seq.), or other applicable law, (2) prevent Consultant from performing the terms of this Agreement, or (3) present a significant risk of the disclosure of confidential information.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Consultant agree as follows:

3. DEFINITIONS

3.1 “Scope of Services” means such professional services as described in “Exhibit A” attached herewith and fully incorporated herein by this reference.

3.2 “Approved Fee Schedule” means such compensation rates as are set forth in Consultant’s August 11, 2023 fee schedule to City attached hereto as “Exhibit B” and fully incorporated herein by this reference. This fee schedule shall remain in effect for the duration of this Agreement unless modified in writing by mutual agreement of the parties.

3.3 “Commencement Date” means date of signature.

December 19, 2023 Yreka City Council Agenda 132 of 177

D R A F T
Professional Services Agreement
(City of Yreka / SCI Consulting Group)

Page 2 of 15 ends

Approved for Use: __/__/2023
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3.4 “Termination Date” means January 1, 2026.

3.5 “City Agreement Administrator” means City Manager, Jason Ledbetter or their designee. The Agreement Administrator shall be the principal point of contact at the City for this project.

3.6 “Consultant Project Administrator” means Kyle Tankard.

4. CAMPAIGN CONTRIBUTIONS
This Agreement is subject to Government Code Section 84308, as amended by SB 1439.

That statute requires Consultant to disclose any campaign contribution by the Consultant or the Consultant’s agent to City Councilmembers or other City officials of more than $250 in the aggregate in the preceding 12 months. Consultant shall provide a signed copy of the attached Campaign Contribution Disclosure Form with Consultant’s execution of this Agreement.

5. TERM
The term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall terminate at 11:59 p.m. on the Termination Date unless extended in writing by mutual agreement of the parties or terminated earlier in accordance with Section 19 (“Termination”) below.

6. CONSULTANT’S SERVICES

6.1 Time is of the essence in Consultant’s performance of services under this Agreement.

6.2 Consultant shall perform the services identified in the Scope of Services. City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the sum of sixty thousand ($60,500) (“Maximum Amount") unless specifically approved in advance and in writing by City. Consultant shall notify the City Agreement Administrator, in writing, when fees and expenses incurred under this Agreement have reached eighty percent (80%) of the maximum amount payable above. Consultant shall concurrently inform the City Agreement Administrator, in writing, of Consultant’s estimate of total expenditures required to complete its current assignments before proceeding, when the remaining work on such assignments would exceed the Maximum Amount payable above.

6.3 Consultant shall obtain and maintain in force a City business license for the duration of this Agreement.

December 19, 2023 Yreka City Council Agenda 133 of 177

D R A F T
Professional Services Agreement
(City of Yreka / SCI Consulting Group)

Page 3 of 15 ends

Approved for Use: __/__/2023
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6.4 Consultant shall perform all work to the highest standards of Consultant’s profession and in a manner reasonably satisfactory to City. Consultant shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.).

6.5 During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute and (ii) City has not consented in writing to Consultant’s performance of such work.

6.6 Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Services. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Kyle Tankardshall be the Consultant Project Administrator and shall have direct responsibility for management of Consultant’s performance under this Agreement.

No other person shall serve as Consultant Project Administrator without City’s prior written consent.

6.7 This Agreement covers professional services of a specific and unique nature.

Except as otherwise provided herein, Consultant shall not assign or transfer its interest in this Agreement or subcontract any services to be performed without amending this Agreement.

6.8 Consultant shall be responsible to City for all services to be performed under this Agreement. All subconsultants shall be approved by the City Agreement Administrator and their billing rates identified in the Approved Fee Schedule, Exhibit B. City shall pay Consultant for work performed by its subconsultants (including labor) only at Consultant’s actual cost plus an approved mark-up as set forth in the Approved Fee Schedule, Exhibit B. Consultant shall be liable and accountable for any and all payments, compensation, and federal and state taxes to all subconsultants performing services under this Agreement. City shall not be liable for any payment, compensation, or federal and state taxes for any subconsultants.

6.9 Consultant shall notify the City Agreement Administrator, in writing, of any change in name, ownership or control of Consultant’s firm or of any subconsultant. Change of ownership or control of Consultant’s firm may require an amendment to the Agreement.

6.10 This Agreement is subject to prevailing wage law, for all work performed under the Agreement for which the payment of prevailing wages is required under the December 19, 2023 Yreka City Council Agenda 134 of 177

D R A F T
Professional Services Agreement
(City of Yreka / SCI Consulting Group)

Page 4 of 15 ends

Approved for Use: __/__/2023
Error! Unknown document property name.

California Labor Code. In particular, Consultant acknowledges that prevailing wage determinations are available for the performance of inspection and survey work.

6.11 Pursuant to California Labor Code Sections 1773.2 and 1775, the Consultant shall forfeit as a penalty to City $200.00 or any greater penalty provided in the Labor Code for each Calendar Day, or portion thereof, for each worker paid less than the prevailing wage rates for any work done under the Contract employed in the execution of the work by Consultant or by any Subcontract under Consultant in violation of the provisions of the Labor Code. In addition, the difference between such prevailing wage rates and the amount paid to each worker for each Calendar Day, or portion thereof, for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the Consultant.

6.12 Pursuant to Labor Code § 1776, each consultant and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Labor Code §§ 1771, 1811, and 1815 for any work performed by his or her employees on the public works project.

The payroll records enumerated under subdivision (a) shall be verified and shall be available for inspection at all reasonable hours as required by Labor Code § 1776.”

7. COMPENSATION

7.1 City agrees to compensate Consultant for the services provided under this Agreement, and Consultant agrees to accept payment in accordance with the Approved Fee Schedule in full satisfaction for such services.

7.2 Consultant shall submit to City an invoice, on a monthly basis or less frequently, for services performed pursuant to this Agreement. Each invoice shall identify the maximum amount payable above, the services rendered during the billing period, the amount due for the invoice, and the total amount previously invoiced. All labor charges shall be itemized by employee name and classification/position with the firm, the corresponding hourly rate, the hours worked, a description of each labor charge, and the total amount due for labor charges. City shall not withhold December 19, 2023 Yreka City Council Agenda 135 of 177

D R A F T
Professional Services Agreement
(City of Yreka / SCI Consulting Group)

Page 5 of 15 ends

Approved for Use: __/__/2023
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applicable taxes or other payroll deductions from payments made to Consultant except as otherwise required by law. Consultant shall include a copy of each subconsultant invoice for which reimbursement is sought in the invoice.

7.3 The parties agree to meet and confer at mutually agreeable times to resolve any disputed amounts contained in an invoice submitted by Consultant.

7.4 Additional Work. Consultant shall not be reimbursed for any expenses incurred for work performed outside the Scope of Services unless prior written approval is given by the City through a fully executed written amendment to this Agreement.

Consultant shall not undertake any such work without prior written approval of the Project Administrator.

8. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material, and all electronic files, including computer-aided design files, developed by Consultant in the performance of this Agreement (such written material and electronic files are collectively known as “written products”) shall be and remain the property of City without restriction or limitation upon its use or dissemination by City except as provided by law. Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant.

9. RELATIONSHIP OF PARTIES
Consultant is, and shall at all times remain as to City, a wholly independent contractor.

Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent. Consultant, its officers, employees and agents shall not have any power to bind or commit the City to any decision or course of action, and Consultant, its officers, employees and agents shall not represent to any person or party that it or they are acting as agents of the City or that it or they have the power to bind or commit the City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not represent that it is, or that any of its agents or employees are, in any manner employees of City.

Under no circumstances shall Consultant look to the City as its employer. Consultant shall not be entitled to any benefits. City makes no representation as to the effect of this independent contractor relationship on Consultant’s previously earned California Public Employees Retirement System (“CalPERS”) retirement benefits, if any, and Consultant specifically assumes the responsibility for making such a determination. Consultant shall be responsible for all reports and obligations including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation, and other applicable federal and state taxes.

10. AGREEMENT ADMINISTRATOR
December 19, 2023 Yreka City Council Agenda 136 of 177

D R A F T
Professional Services Agreement
(City of Yreka / SCI Consulting Group)

Page 6 of 15 ends

Approved for Use: __/__/2023
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In performing services under this Agreement, Consultant shall coordinate all contact with City through its City Agreement Administrator. City reserves the right to change this designation upon written notice to Consultant. All services under this Agreement shall be performed at the request of the City Agreement Administrator, who will establish the timetable for completion of services and any interim milestones.

11. INDEMNIFICATION

11.1 The parties agree that City, its officers, agents, employees and volunteers should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, taxes, or any other cost arising out of or in any way related to the performance of this Agreement.

Accordingly, the parties intend the provisions of this indemnity provision to be interpreted and construed to provide the City with the fullest protection possible under the law. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify and protect City as set forth herein.

11.2 To the fullest extent permitted by law, Consultant shall indemnify, hold harmless, and when the City requests with respect to a claim provide a deposit for the defense of, and defend City, its officers, agents, employees and volunteers from and against any and all claims, losses, costs and expenses for any damage due to death or injury to any person, whether physical, emotional, consequential or otherwise, and injury to any property arising out of or in connection with Consultant’s alleged negligence, recklessness or willful misconduct or other wrongful acts, errors or omissions of Consultant or any of its officers, employees, servants, agents, or subcontractors, or anyone directly or indirectly employed by either Consultant or its subcontractors, in the performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole active negligence or willful misconduct of the City. Such costs and expenses shall include reasonable attorneys’ fees due to counsel of City’s choice, expert fees and all other expenses of litigation. Consultant shall not be entitled to any refund of attorneys’ fees, defense costs or expenses in the event that it is adjudicated to have been non-negligent.

11.3 City shall have the right to offset against any compensation due Consultant under this Agreement any amount due City from Consultant as a result of Consultant’s failure to pay City promptly any indemnification arising under this section of this Agreement and any amount due City from Consultant arising from Consultant’s failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

11.4 The obligations of Consultant under this section of this Agreement are not limited by the provisions of any workers’ compensation or similar statute. Consultant December 19, 2023 Yreka City Council Agenda 137 of 177

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expressly waives its statutory immunity under such statutes as to City, its officers, agents, employees and volunteers.

11.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in section of this Agreement from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnity obligations from others, Consultant agrees to indemnify, hold harmless and defend City, its officers, agents, employees and volunteers from and against any and all claims, losses, costs and expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subcontractors or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice.

11.6 City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply whether or not any insurance policies apply to a claim, demand, damage, liability, loss, cost or expense.

11.7 In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

11.8 Notwithstanding any federal, state, or local policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in CalPERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for CalPERS benefits.

12. INSURANCE

12.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or December 19, 2023 Yreka City Council Agenda 138 of 177

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damages to property that may arise from or in connection with Consultant’s performance of this Agreement.

12.2 Any available insurance proceeds broader than or in excess of the specified minimum Insurance coverage requirements or limits shall be available to City as an Additional Insured as provided below. Furthermore, the requirements for coverage and limits shall be the greater of (1) the minimum coverage and limits specified in this Agreement, or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named Insured.

12.3 Insurance required under this Agreement shall be of the types set forth below, with minimum coverage as described:

12.3.1 Comprehensive General Liability Insurance with coverage limits of not less than One Million Dollars ($1,000,000) including products and operations hazard, contractual insurance, broad form property damage, independent consultants, personal injury, underground hazard, and explosion and collapse hazard where applicable.

12.3.2 Automobile Liability Insurance for vehicles used in connection with the performance of this Agreement with minimum limits of One Million Dollars ($1,000,000) per claimant and One Million dollars ($1,000,000) per incident.

12.3.3 Worker’s Compensation insurance if and as required by the laws of the State of California.

12.3.4 Professional Errors and Omissions Insurance with coverage limits of not less than One Million Dollars ($1,000,000). In the event Consultant’s policy is a “claims made” policy only covering those claims made during the policy period, then Consultant agrees to maintain the professional liability insurance required hereunder and with respect to this project in effect for at least three (3) years after acceptance of the work. The retroactive date of the policy must be shown and must be before the Commencement Date of this Agreement. If coverage is canceled or nonrenewed, and not replaced with another claims-made policy form with a retroactive date before the Commencement Date of this Agreement, the Consultant must purchase “extended reporting” coverage for a minimum of three (3) years after completion of work.

12.4 Consultant shall require each of its subconsultants to maintain insurance coverage that meets all of the requirements of this Agreement provided however, that the City Agreement Administrator may waive the provision of Errors and Omissions Insurance by subconsultants in his or her sole discretion.

December 19, 2023 Yreka City Council Agenda 139 of 177

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12.5 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

12.6 Consultant agrees that if it does not keep the insurance coverages required by this Agreement in full force and effect, City may either (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay the premium(s) thereon at Consultant’s expense.

12.7 At all times during the term of this Agreement, Consultant shall maintain on file with City’s Risk Manager a certificate or certificates of insurance showing that the required coverages are in effect and naming City and its officers, employees, agents and volunteers as Additional Insureds. Prior to commencement of work under this Agreement, Consultant shall file with City’s Risk Manager such certificate(s) and Forms CG 20 10 07 04 and CG 20 37 07 04 or the substantial equivalent showing City as an Additional Insured.

12.8 Consultant shall provide proof that policies of insurance required by this Agreement expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two weeks prior to the expiration of the coverages.

12.9 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City and its officers, employees, agents and volunteers as Additional Insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

12.10 The insurance provided by Consultant shall be primary to any other coverage available to City. Any insurance or self-insurance maintained by City and/or its officers, employees, agents or volunteers shall be in excess of Consultant’s insurance and shall not contribute with it.

12.11 All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subcontractors, from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against the City. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. However, the Workers’ Compensation policy shall December 19, 2023 Yreka City Council Agenda 140 of 177

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be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant, its employees, agents and subconsultants.

12.12 Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond in the amount of the deductible or self-insured retention to guarantee payment of losses and expenses.

12.13 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 11 of this Agreement.

12.14 Consultant may be self-insured under the terms of this Agreement only with express written approval from the City.

12.14.1 All self-insured retentions (SIR) must be disclosed to the City for approval and shall not reduce the limits of liability.

12.14.2 Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Insured or the City.

12.15 City reserves the right to obtain a full certified copy of any Insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of the right to exercise later.

13. MUTUAL COOPERATION

13.1 City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available for the proper performance of Consultant’s services under this Agreement.

13.2 If any claim, action, or proceeding is brought against City relating to Consultant’s performance in connection with this Agreement, Consultant shall render any reasonable assistance that City may require in the defense of that claim, action, or proceeding.

14. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is December 19, 2023 Yreka City Council Agenda 141 of 177

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legally required. Upon request, all City data shall be returned to City upon the termination or expiration of this Agreement.

15. RECORDS AND INSPECTIONS
Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such documents shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City. City shall further have the right to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

In addition, pursuant to Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds ten thousand dollars, all such documents and this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under the Agreement.

16. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary for Consultant’s performance of this Agreement. This includes, but shall not be limited to, professional licenses, encroachment permits and building and safety permits and inspections.

17. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile or overnight courier service during Consultant’s and City’s regular business hours; or (ii) on the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the parties may, from time to time, designate in writing).

If to City:

Jason Ledbetter
City Manager
701 4th Street
Yreka, CA 96097]
Telephone: (530) 841-2386
If to Consultant:

Kyle Tankard
SCI Consulting Group
4745 Mangels Blvd.

Fairfield, CA 94534
Telephone: (707) 430-4300
December 19, 2023 Yreka City Council Agenda 142 of 177

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With courtesy copy to:

Andrew L. Jared, City Attorney
Colantuono, Highsmith & Whatley, PC
790 E. Colorado Blvd., Suite 850
Pasadena, CA 91101
Telephone: (213) 542-5739
Facsimile: (213) 542-5710
Email: [email protected]

18. SURVIVING COVENANTS
The parties agree that the covenants contained in Section 11, Section 14, Paragraph 13.2 and Section 15 of this Agreement shall survive the expiration or termination of this Agreement.

19. TERMINATION

19.1. City may terminate this Agreement for any reason on five calendar days’ written notice to Consultant. Consultant may terminate this Agreement for any reason on thirty calendar days’ written notice to City. Consultant agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

All City data, documents, objects, materials or other tangible things shall be promptly returned to City upon the termination or expiration of this Agreement.

19.2. If City terminates this Agreement due to no fault or failure of performance by Consultant, then Consultant shall be paid based on the work satisfactorily performed at the time of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement as provided in Section 5.2 above and as otherwise provided in this Agreement.

20. GENERAL PROVISIONS

20.1 Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any party other than Consultant.

20.2 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph shall govern construction of this Agreement. Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular and vice December 19, 2023 Yreka City Council Agenda 143 of 177

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versa, in any place or places herein in which the context requires such substitution(s).

20.3 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any other term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing signed by one authorized to bind the party to be charged with the waiver.

20.4 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to causes beyond the control and without the fault or negligence of Consultant.

20.5 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance from the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any or all of such other rights, powers or remedies. If legal action shall be necessary to enforce any term, covenant or condition contained in this Agreement, the party prevailing in such action, whether or not reduced to judgment, shall be entitled to its reasonable court costs, including any accountants’ and attorneys’ fees expended in the action. The venue for any litigation shall be Siskiyou County, California and Consultant hereby consents to jurisdiction in Siskiyou County for purposes of resolving any dispute or enforcing any obligation arising under this Agreement.

20.6 If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to the extent necessary to, cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

20.7 This Agreement shall be governed and construed in accordance with the laws of the State of California.

20.8 All documents referenced as exhibits in this Agreement are hereby incorporated into this Agreement. In the event of any material discrepancy between the provisions of this Agreement and those of any document incorporated herein by December 19, 2023 Yreka City Council Agenda 144 of 177

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reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the parties. Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed on behalf of the City and Consultant.

20.9 Consultant shall not discriminate against any employee or applicant for employment because of race, sex (including pregnancy, childbirth, or related medical condition), creed, national origin, color, disability as defined by law, disabled veteran status, Vietnam veteran status, religion, age (40 and above), medical condition (cancer-related), marital status, ancestry, or sexual orientation.

Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to race, sex (including pregnancy, childbirth, or related medical condition), creed, national origin, color, disability as defined by law, disabled veteran status, Vietnam veteran status, religion, age (40 and above), medical condition (cancer-related), marital status, ancestry, or sexual orientation. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; or in terms, conditions or privileges of employment, and selection for training, Consultant agrees to post in conspicuous places, available to employees and applicants for employment, the provisions of this nondiscrimination clause.

20.10 This Agreement shall be binding on successors and assigns of the parties.

20.11 Except as expressly stated herein, there is no intended third-party beneficiary of any right or obligation assumed by the parties.

20.12 The Recitals are incorporated by this reference.

TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Agreement as of the last date indicated below:
“City” “Consultant”
By___________________________ By:_______________________________ Jason Ledbetter, City Manager ………..John Bliss, SCI Consulting Group Date:______________________ Date:_________________________ December 19, 2023 Yreka City Council Agenda 145 of 177

D R A F T
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Attest:

By
Shella Rhetta Hogan, Acting City Clerk
Date:_______________________
Approved as to form:

By__________________________________
Andrew L. Jared, City Attorney
Date: __________________________
December 19, 2023 Yreka City Council Agenda 146 of 177

D R A F T
“EXHIBIT A”

SCOPE OF WORK
A-1
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Summary:

SCI will provide cannabis-related consulting services. SCI understands the City has received a grant from the Department of Cannabis Control (DCC) to develop a local cannabis retail licensing program, with an equity component, for up to three medicinal non-storefront retail delivery licenses. SCI understands that the City seeks assistance with conducting outreach and the development of their regulations.

SCI proposes to provide the complete suite of services necessary for a successful local cannabis program implementation, that includes:

Essential Work Tasks:

Work Plan Component Contract Estimate:

1. Community Outreach, Education, and Feedback $ 7,500
Community Meetings: SCI will attend and/or present at up to 2 community meetings or workshops to help inform discussion and development of a potential cannabis ordinance and associated regulatory program. The cost for this task includes planning and coordination with staff, preparation of a presentation or materials as necessary, meetings attendance, and any follow-up. Physical attendance would incur an additional travel charge.

Public Information Materials: Public information materials are a key component of SCI’s public outreach process.

These materials are developed to provide summary information on the projects for the general public. These materials may include PowerPoint presentations, Brochures, fact sheets, flyers, and newsletters, online components such as e-alerts, e-newsletters, and web page updates, and Social Media Deliverables
• Attend/Present at 2 community meetings
• Develop public information materials
Work Plan Component Contract Estimate:

2. Ordinance development $15,000
Work with City staff, stakeholders, and the community to understand the goals and priorities of local cannabis policies, we will present options and advise on best strategies and practice approaches for the content of the ordinance, as well as key components of timing and development. The regulations must ensure compliance with all State regulations, reflect local preferences, be flexible enough to adapt to the dynamic aspects of this unique industry, and lay the foundation for monitoring and compliance activities so that appropriate regulatory fees can be calculated and fundamentally address the social equity goals.

Deliverables:
• Develop draft ordinance(s)
• Prepare resolutions, staff reports, and supporting documentation for Council adoption • Attend Council Meetings
Work Plan Component Contract Estimate:

3. Social Equity Program $ 7,500
SCI will work with the City to develop an equity program and draft a social equity element in the City’s Ordinance to promote equitable access to commercial cannabis business opportunities. The equity program/ordinance will establish the criteria used to determine who qualifies for participation in the City’s local equity program and establish the services provided to equity applicants.

Deliverables:
• Plan and develop equity program
• Draft Social Equity Element of Ordinance
December 19, 2023 Yreka City Council Agenda 147 of 177

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Work Plan Component Contract Estimate:

4. Cannabis Tax Ordinance $12,500
From City staff, stakeholders, and the community SCI will seek to understand the goals and priorities of local cannabis policies, we will present options and advise on best strategies and practice approaches for the content of the ordinance, as well as key components of timing and development. In addition to establishing land use and operating criteria, the regulations must ensure compliance with all State regulations, reflect local preferences, be flexible enough to adapt to the dynamic aspects of this unique industry, and lay the foundation for monitoring and compliance activities so that appropriate regulatory fees can be calculated and fundamentally address the social equity goals.
• Develop draft ordinance(s)
• Prepare resolutions, staff reports, and supporting documentation for Council adoption • Attend Council Meetings
Work Plan Component Contract Estimate:

5. Application Development $ 9,500
SCI will develop a transparent and fair model to evaluate and score cannabis applications that emphasize community health and safety, fairness and equity, longevity and sustainability and other elements specified by the City. This task includes the development of draft application and evaluation forms, the scoring system and checklist, the scoring process, instructions, agreements, insurance requirement disclosures, authorizations, etc.

Deliverables:
• Develop application process
• Develop application package (forms, procedures, indemnification forms, and other required documents) Work Plan Component Contract Estimate:

6. Cost Recovery Analysis $ 8,500
SCI will establish a reliable, robust cannabis fee structure that provides, full cost recovery to the City, is supported by the community and the local cannabis industry, is Proposition 26 justifiable, and adheres to all State and local regulations.

Deliverables:
• Develop Fee Study Report
• Prepare Resolution, Staff Report, and Supporting Documentation for Council Adoption December 19, 2023 Yreka City Council Agenda 148 of 177

D R A F T
“EXHIBIT B”

APPROVED FEE SCHEDULE
B-1
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SCI Staff
John Bliss, President $300
Kyle Tankard, Cannabis Services Group Leader Support Staff $325 Support Staff $ 70
Incidental costs incurred for the purchase of additional travel and other out-of-pocket expenses will be reimbursed at actual cost, with the total not to exceed $3,000 per year without prior authorization from the City.

The scope of services includes one face-to-face staff planning meeting, two community meetings, and two City Council meetings. Any additional face-to-face meetings, if required, shall be billed at the rate of $1,500 per person, per meeting. SCI is available to meet via teleconference call on a regular basis at no additional charge.

December 19, 2023 Yreka City Council Agenda 149 of 177

D R A F T
Professional Services Agreement
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NON-COLLUSION DECLARATION

TO BE EXECUTED BY

BIDDER AND SUBMITTED WITH BID
The undersigned declares:

I am the President of SCI Consulting Group, the party making the foregoing bid.

The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham.

The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true.

The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ___________________[date], at ____________________________[city], California.
__________________________________________
Signature
__________________________________________
Printed Name of Signatory: John Bliss, President
December 19, 2023 Yreka City Council Agenda 150 of 177

D R A F T
Professional Services Agreement
(City of Yreka / [Company or Individual])
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WORKERS’ COMPENSATION

INSURANCE CERTIFICATE
The Contractor shall execute the following form as required by the California Labor Code, Sections 1860 and 1861:

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

DATE: ____________________ SCI Consulting Group
Contractor
By: __________________________________________
Attest By:

Signature
Name: John Bliss
Title: President
__________________________________________
Signature:

Name: Cyndy Prohaska
Title: City Clerk
December 19, 2023 Yreka City Council Agenda 151 of 177

D R A F T
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CAMPAIGNCONTRIBUTIONDISCLOSUREPROVISIONS
Cities are subject to the campaign disclosure provisions detailed in Government Code Section 84308.

Please carefully read the following information to determine if the provisions apply to you. If you determine that the provisions are applicable, the Campaign Disclosure Form must be completed and returnedtothe Citywithyourapplication.

No City Councilmember or other City official shall accept, solicit, or direct a campaign contribution of more than $250 from any party1 or agent2 for 12 months after the
City approves a contract. This prohibition commences
when an application is filed, or a proceeding is otherwise initiated.

A party to a City proceeding shall disclose on the record of the proceeding any campaign contribution of more than $250 by a party or agent to any City Councilmember or other City official during the preceding 12 months. No party to a City proceeding, or agent, shall make a campaign contribution to a City Councilmember or other City official during a proceeding and for 12 months after the City approves a
contract.

A City Councilmember or other City official who received a campaign contribution of more than $250 within the
preceding 12 months from any party, or agent, to a
proceeding shall disclose that fact on the record of the proceeding, and shall abstain from participating in the proceeding. However, if he or she returns the portion of a campaign contribution in excess of $250 within 30 days of knowing about the contribution and the relevant
proceeding, he or she may participate in the proceeding. 1 “Party” is defined as any person who files an application for, or is the subject of, a proceeding.
2 “Agent” is defined as a person who represents a party in connection with a proceeding. If an individual acting as an agent also is acting as an employee or member of a law, architectural, engineering, or consulting firm, or a similar entity or corporation, both the individual and the entity or
corporation are agents. When a closed corporation is a party to a proceeding, the majority shareholder is subject to these provisions.

To determine whether you or your agent made a campaign
contribution of more than $250 to a City Councilmember or other City official within the preceding 12 months, you must aggregate all such contributions.

Names of current City Councilmembers and other City officials are available on the City’s website. If you have questions about Government Code Section 84308, FPPC regulations, or the Campaign Disclosure Form, please contact the City Clerk.

CAMPAIGN CONTRIBUTION DISCLOSURE FORM
(a) Contract type:
□ License
□ Lease
□ Permit
□ Franchise
□ Other Contract
□ Other Entitlement
Name and address of any party, or agent, who has contributed more than $250 to any City Councilmember or other City official within the preceding 12 months:

1. ____________________________________

2. ____________________________________

3. ____________________________________
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1. ____________________________________

2. ____________________________________

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(d) □ Check here If no contributions have been made to
any Councilmember or other City official in the
preceding 12 months.
(e) I certify that the above information is provided to the best of my knowledge.

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December 19, 2023 Yreka City Council Agenda 152 of 177

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Proposal For CITY OF YREKA
Cannabis Consulting Services
In Response to:

Request for Proposal – Cannabis Implementation
Services
December 19, 2023 Yreka City Council Agenda 153 of 177
City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023
Page i
August 11, 2023
Submitted via electronically
[email protected]
Shella Rhetta Hogan
Assistant City Manager
City of Yreka
701 Fourth Street
Yreka, CA 96097
Re: City of Yreka Request for Proposal – Cannabis Implementation Service

Dear Ms. Hogan:

SCIConsultingGroup (“SCI”) is pleased to submit this proposal in response to the City of Yreka’s (“City”) request for proposal for cannabis-related consulting services. We understand that the City has received a grantfrom the Department of Cannabis Control (DCC) to develop a local cannabisretail licensing program, with an equity component, for up to three medicinal non-storefront retail delivery licenses. Additionally, we understand the City seeks assistance with conducting outreach and the development of their regulations.

SCI proposes to provide the complete suite of services necessary for a successful local cannabis program implementation, as fully described in our Scope of Work, including:

1. Community Outreach, Education, and Feedback

2. Develop and Draft Cannabis Regulatory and Zoning Ordinances

3. Social Equity Program

4. Business License Tax / Cannabis Tax Ballot Measure

5. Application Process Development

6. Cost Recovery Analysis
As one of California’s leading local cannabis policy consulting firms, SCI has broad and direct experience providing support for regulated local cannabis businesses in various municipalities throughout the State.

Our long-standing experience in providing cannabis-related consulting services to municipalities across California has led the company to the forefront of the state's cannabis equity movement. In recognition of its expertise, SCI has been selected by the Cities of Adelanto, Palm Springs, Richmond, Santa Rosa, and Stockton to provide specialized cannabis equity services.

We look forward to the opportunity to assist the City with thisimportant project. If you have any questions or require additional information, please do not hesitate to contact me. I can be reached via e-mail at [email protected] or on my cell phone at (707) 208-0940.

Sincerely,
John Bliss, P.E.

President, SCI Consulting Group
December 19, 2023 Yreka City Council Agenda 154 of 177
City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Organization Qualifications
SCI is a public finance and urban economic consulting firm with over 35 years of expertise in assisting public agencies in California with developing policy and planning, justifying, and successfully establishing new revenues(taxes, fees, assessments, regulations) for their service and capital improvement needs and objectives and managing special levies.

SCI provides cannabis-related advice and broad consulting services to a variety of public agencies in California, including community support analysis, ordinance development, fee studies, taxation, implementation, application process development, application review and scoring, monitoring and compliance, business tax auditing, community outreach and engagement, and social equity consulting.

We were perhaps the very first consulting firm to provide a full suite of local cannabis policy implementation services to California municipalities and developed the “6 Key Elements of Cannabis Implementation” approach that is the standard today:

1. Community Research and Outreach (Meetings & Surveys)

2. Health and Safety & Land Use Regulations (Ordinance(s))

3. Full Cost Recovery (Regulatory Fees)

4. Revenue (Taxation Ballot Measures)

5. Local Industry Selections (Application and Selection Process)

6. Monitoring and Compliance
And more recently, we have added, and become a State leader in:

7. Social Equity (We are currently providing these services to the Cities of Adelanto, Richmond, and Santa Rosa)
Our core philosophy and approach towards the implementation of local cannabis policy is more broadly balanced than that of our competitors. Our philosophy comes from our genesis as a solution-based engineering firm that has evolved and developed in-house expertise in public policy, community outreach, and social equity. Although our quantitative and regulatory rigor, and attention to detail, are unsurpassed, we balance this with realistic approaches to a real-world challenge, fully understanding and supporting the City’s challenging transition into a regulated and legal cannabis business arena. Hence, SCI balances enforcement of local and State code along with the need to support viable cannabis businesses and to shepherd non-compliant businesses into a safe and regulated environment.

December 19, 2023 Yreka City Council Agenda 155 of 177
City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Over the last seven years, SCI has emerged as one of California’s premier local cannabis policy firms offering a full range of “one-stop-shop” services in support of the successful implementation of regulated cannabis business within a City or County. SCI is a highly qualified and experienced in providing cannabis consulting services to California municipalities. We have a team of experts who are well-versed in the cannabis industry and have a deep understanding of the regulations and laws surrounding it. Our team has a wealth of knowledge and experience in California cannabis policy, drawing from our 7+ years of assisting municipalities, which allows us to provide our clients with the best possible service. Overall, SCI is a reliable and trustworthy partner for anyone looking to navigate the complex landscape of the cannabis industry.

We are currently under contract to provide cannabis-related consulting services to:

City of Adelanto City of Nevada
City of Colfax City of Richmond
City of Dunsmuir City of Salinas
City of Fairfield City of San Bernardino
City of Fontana City of Santa Rosa
City of Lompoc City of Shasta Lake
City of Merced County of San Benito
City of National City County of San Diego
December 19, 2023 Yreka City Council Agenda 156 of 177
City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Management and Team Members
Below is a brief description of the proposed team for this project: Kyle Tankard and John Bliss.

Kyle will serve as project manager and day-to-day contact.

Kyle Tankard Senior Consultant – Cannabis Business Leader Kyle Tankard is the Cannabis Business Leader at SCI, where he has been providing local cannabis policy expertise in California since 2016. He assists municipalities with all aspects of local cannabis implementation, including regulatory and equity program development, taxation policy, compliance, application review, and public education. Kyle is a recognized leader in cannabis equity, having developed and implemented programs for multiple cities, including Richmond, Palm Springs, Adelanto, Santa Rosa, and Stockton. With a portfolio of over 15 cannabis clients, he provides a range of ongoing services, including compliance inspections, equity analysis, and program development and implementation.

During his tenure at SCI, Kyle has worked extensively with California cities, counties, and special districts providing local funding and policy solutions. He has over 10 years of experience as a results-driven project manager, delivering his projects on time, under tight deadlines and highpressure situations. Kyle received his Bachelor’s Degree in Environmental Studies from the University of California, Santa Cruz, with emphasis in geographic information systems (GIS).

John Bliss M.Eng., P.E., President
John Bliss, a professional engineer and President of SCI, specializes in local cannabis policy, and special revenue consulting. He was instrumental in developing the now-standard implementation process used by most municipalities in California to implement local cannabis policy. John has had a long career developing and implementing equity, diversity and inclusion policy reaching back almost 30 years to the ground-breaking implementation for the City of San Francisco public works construction employment following the Rodney King uprising in 1991. He is a graduate of Brown University with a Bachelor of Science Degree in Engineering.

He holds a Master’s Degree in Civil Engineering from The University of California, Berkeley, where he was a Regent's Scholar. He is a licensed Professional Civil Engineer in the State of California and is a LEED accredited professional.

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City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Scope of Work
SCI will conduct a project kick-off meeting with City staff to establish project priorities and goals, communication protocols, and timelines. We will gather and review all applicable information needed to perform the required tasks. SCI will be available to meet via teleconference call on a regular basis.

1. Community Outreach, Education and Feedback
Because of the strong, varied, and often highly emotional opinions towards cannabis policy within California communities, adequate resources can provide fact-based, unbiased, and dispassionate information to City staff, elected officials, stakeholders, and the broader community to set the appropriate policy. SCI has considerable expertise in organizing and managing public informational meetings regarding cannabis. Working with the City, the SCI will use a wide variety of techniques including presentations, meetings, social media, etc. to engage and receive input.

Community Meetings
SCI will attend and/or present at up to 2 community meetings or workshops to help inform discussion and development of a potential cannabis ordinance and associated regulatory program. The cost for this task includes planning and coordination with staff, preparation of a presentation or materials as necessary, meetings attendance, and any follow-up. Physical attendance would incur an additional travel charge.

Public Information Materials
Public information materials are a key component of SCI’s public outreach process. These materials are developed to provide summary information on the projects for the general public.

These materials may include:
 PowerPoint presentations
 Brochures, fact sheets, flyers, and newsletters
 Online components such as e-alerts, e-newsletters, and web page updates  Social Media
Deliverables:
 Attend/Present at 2 community meetings
 Develop public information materials
December 19, 2023 Yreka City Council Agenda 158 of 177
City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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2. Ordinance Development (Regulatory and Zoning)
Drafting a cannabis regulatory ordinance, or ordinances, is one of the most important tasks in the implementation process. After we work with City staff, stakeholders, and the community to understand the goals and priorities of local cannabis policies, we will present options and advise on best strategies and practice approaches for the content of the ordinance, as well as key components of timing and development. In addition to establishing land use and operating criteria, the regulations must ensure compliance with all State regulations, reflect local preferences, be flexible enough to adapt to the dynamic aspects of this unique industry, and lay the foundation for monitoring and compliance activities so that appropriate regulatory fees can be calculated and fundamentally address the social equity goals.

We will use our established matrix of cannabis-related attributes to ensure completeness and highlight all areas that need expansion and/or reconsideration. We will include the best practices from other similar cannabis ordinances, as well as emerging or anticipated industry changes in the draft of the City’s ordinance. Our work will be carefully documented with specific reference to the appropriate code or reason for a change. We will carefully research our work to be compliant with all local and State laws and regulations, and the final ordinances will be reviewed by the City’s legal counsel prior to implementation. Finally, we will help shepherd the ordinance through the approval process.

Deliverables:
 Develop draft ordinance(s)
 Prepare resolutions, staff reports, and supporting documentation for Council adoption  Attend Council Meetings

3. Social Equity Program
SCI understands that long-standing and persistent obstacles to general business opportunities for affected communities that exist broadly within the United States are even more severe regarding cannabis-related businesses, largely because of racial targeting such as that associated with the War on Drugs. The aim of this initiative is to eliminate the barriers within the cannabis industry for communities that have been negatively affected by the criminalization of cannabis, providing them with the tools and opportunities to participate in the industry.

SCI will work with the City to develop an equity program and draft a social equity element in the City’s Ordinance to promote equitable access to commercial cannabis business opportunities. The equity program/ordinance will establish the criteria used to determine who qualifies for participation in the City’s local equity program and establish the services provided to equity applicants.

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Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Deliverables:
 Plan and develop equity program
 Draft Social Equity Element of Ordinance

4. Business License Tax / Cannabis Tax Ballot Measure
SCI shall develop a draft commercial cannabis tax ordinance to generate City revenues from licensed cannabis businesses. The ordinance will set maximum tax rates for each type of cannabis business permitted by the City and will allow the City Council to set the rates as desired up to the maximum rate. The ordinance shall also specify the schedule and procedures for remitting taxes and shall allow the City to conduct audits of cannabis businesses to ensure they are reporting and remitting the proper amounts.

SCI will assist with the preparation of the draft election resolution, ballot question, full ballot text/ordinance, and election materials. After these election materials are prepared, they will be provided to the County Elections Department, the City, and its legal counsel for review and comment. Feedback and comments will be incorporated before the documents are finalized. SCI will also prepare draft resolutions, notices and other materials and documents required or recommended for any proposed taxes. Such documents will be finalized in conjunction with the City’s legal counsel.

Deliverables:
 Develop optimized tax methodology
 Develop draft election resolution of consolidation including 75-word ballot question, and full ballot text/ordinance
 Prepare staff reports, and supporting documentation for Council Adoption  Attend Council Meetings

5. Application Process Development
The cannabis business permit application and selection process are typically the most onerous and difficult portion of a successful municipal commercial cannabis business activity implementation, especially pertaining to a competitive process for a finite number of licenses.

SCI will develop a transparent and fair model to evaluate and score cannabis applications that emphasize community health and safety, fairness and equity, longevity and sustainability and other elements specified by the City. This task includes the development of draft application and evaluation forms, the scoring system and checklist, the scoring process, instructions, agreements, insurance requirement disclosures, authorizations, etc.

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Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Deliverables:
 Develop application process
 Develop application package (forms, procedures, indemnification forms, and other required documents)

6. Cost Recovery Analysis
The goal of the cost recovery analysis is to assign responsibility to the industry participants for expenses incurred by the City for developing, managing, and regulating industry activities, ensuring full cost recovery for all the City’s cannabis-related activities. SCI will provide engineering services in developing the fees for commercial cannabis regulation in the City. SCI will establish a reliable, robust cannabis fee structure that provides, full cost recovery to the City, is supported by the community and the local cannabis industry, is Proposition 26 justifiable, and adheres to all State and local regulations.
 The basic cannabis related regulatory fees are:
 Application Review
 Application Renewal
 Annual Regulatory Fee (also commonly known as a “Cannabis Business Permit Fee”)  Miscellaneous Tasks - Background Checks, Plan Checks, etc.

The costs incurred for both application review phases and renewal, are dictated by the process developed in application process, as described above. The costs of the annual regulatory fee are dictated by the specifics of the City’s regulatory ordinance as well as the development of the monitoring and compliance strategy. In addition, SCI will also incorporate the City’s implementation costs associated with developing the cannabis regulatory program into these fees.

The first step for developing the specific fees is to work with the City to establish administrative process flow documentation for each fee, based upon specific requirements in the City’s cannabis ordinance, as well as standard City processes. Next, this process flow is divided into discrete tasks within a spreadsheet with the associated time increment required to conduct them for each staff position type and hourly rate. Finally, this data is analyzed to ensure that all costs are covered, and a final fee rate is established.

Deliverables:
• Develop Fee Study Report
• Prepare Resolution, Staff Report, and Supporting Documentation for Council Adoption
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City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Cost Estimate
In consideration for the work accomplished, as outlined in this cost proposal, the SCI shall be compensated as detailed below:

Work Plan Fee

1. Community Outreach, Education, and Feedback $ 7,500

2. Ordinance development $ 15,000

3. Social Equity Program $ 7,500

4. Cannabis Tax Ordinance $ 12,500

5. Application Development $ 9,500

6. Cost Recovery Analysis $ 8,500
Total: $ 60,500

SCI Staff Fee
John Bliss, President $ 300
Kyle Tankard, Cannabis Services Group Leader $ 325
Support Staff $ 70
Incidental costs incurred for the purchase of additional travel and other out-of-pocket expenses will be reimbursed at actual cost, with the total not to exceed $3,000 per year without prior authorization from the City.

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City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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References
City of Fontana
Cannabis Services: Application Process Development; Application Review; Cost Recovery Analysis; Background Checks; and Technical and Policy Expertise Contact: Phillip Burum, Deputy City Manager - Development Services [email protected];
Phone: (909) 350-6727
Start/End Dates: September 2022– Present
City of Colfax
Cannabis Services: Ordinance Development, Application Review, Monitoring and Compliance Inspections, and Financial Audits
Contact: Mike Luken, Interim City Manager
[email protected];
Phone: (530) 346-2313
Start/End Dates: 2019 – Present
City of Shasta Lake
Cannabis Services: Implementation Planning; Community Outreach and Stakeholder Engagement; Ordinance Development and Review; Application Process and Fees; Regulatory Fees; Tax Measure; Monitoring and Compliance Contact: Jessica Lugo, City Manager
[email protected];
Phone: (530) 275-7411
Start/End Dates: 2017 – Present
A full list of our current and past cannabis clients is listed below:

Cities Counties
Alameda El Monte National City Santa Clara Alameda
Adelanto
Avalon
Encinitas
Fairfield
Nevada City
Oroville
Santa Rosa
Shasta Lake
San Benito
San Diego
Coalinga Fontana Palm Springs Stockton San Luis Obispo
Colfax La Mesa Richmond Vallejo Tuolumne
Concord Livingston Salinas West Hollywood
Davis Lompoc San Bernardino Woodlake
Dunsmuir Merced San Carlos Yreka
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City of Yreka
Proposal for Cannabis Consulting Services
By SCIConsultingGroup, August 2023

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Additional Information
Employment Policies
SCI does not and shall not discriminate against any employee in the workplace or against any applicant for such employment or against any other person because of race, religion, sex, color, national origin, handicap, or age or any other arbitrary basis. SCI Consulting Group ensures compliance with all civil rights laws and other related statutes.

Conflict of Interest Statements
SCI has no known past, ongoing or potential conflicts of interest for working with the City, performing the Scope of Work or any other service for this Project.

Pending Litigation
SCI does not have any claims, lawsuits or litigation pending or within the last five years.

Insurance
SCI carries professional Errors and Omissions insurance in the amount of $2 million per occurrence and $2 million aggregate. SCI also carries general liability insurance in the amount of $2 million per occurrence and $4 million aggregate.

Independent Contractor
If selected, SCI shall perform all services included in this proposal as an independent contractor.

Additional Scope of Work
In the event the City elects to request optional, additive scope of work, SCI will work with the City to negotiate compensation for these additional tasks and execute an Addendum to the agreement for these additional services.

December 19, 2023 Yreka City Council Agenda 164 of 177
S:\City Council\Council Agenda packet\2023 - City Council Agenda Packets\12 December 2023\2023-12-19\218\Rate Study - Staff Report 2nd Reading December 19 2023 REV(334003.1).docx

CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
Prepared by: Emily Aldrich, Finance Director
Agenda title: Second Reading of Ordinance As Amended Regarding Proposed Water and Wastewater Utility Rate Increase
Meeting date: December 19, 2023
Recommendation and Requested Action:

1. Motion to adopt 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 As Amended And Superseding The Existing Rates Established By Resolution No. 2018-27 and Finding The Ordinance Exempt From CEQA”; or

2. Direction to staff to initiate updated water and wastewater utility rate study, voter protest procedure, and introduction of new ordinance based the updated study results; or

3. Such other direction from the Council.

Discussion:

On December 5, 2023, the City Council met to consider the second reading of Ordinance for the Water and Wastewater Utility Rate Increase. After considering the Ordinance as presented, a revised Ordinance was introduced as-amended changing the rates by 6.5% and 6.3% respectively for water and wastewater utilities, instead of the 9.6% and 9.5% above the 2018 rates as previously introduced at the prior meeting. That amended ordinance passed for a first reading as-amended. This evening the item is before the Council for a second reading of the amended ordinance.

After the meeting on December 5, 2023, staff analyzed the revenue impacts from the proposed changes in revenue. The comparative revenue results are presented in the attachments. Also, in preparing the revenue impact analysis, staff re-evaluated the prior period estimates against actual results in closing both fiscal years 2021/2022 and 2022/2023. Since December 2022 to present, Finance has prepared unaudited closing fiscal year end results (that included significant capital outlay from the City’s underground utility related Highway 3 construction costs), and the fund balance and cash for the water enterprise fund was shown as being materially overstated by nearly $3 million in the utility rate study. The wastewater fund had no material discrepancy. This issue occurred because the data provided to PACE engineering in December of 2022, as initial data available was provided prior to finalizing the audited financials for 2021/2022, overstating the cash position of the fund. Staff wanted to bring this information forward to the City Council and community for full disclosure. This adjustment of the base calculation does not change the justification of the rate increases December 19, 2023 Yreka City Council Agenda 165 of 177
334003.
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presented in the PACE rate study. It result in a rate that is still justified by the analysis conducted by PACE. This finalized accounting of the fund after initial estimates further shows the need for augments to the Water and Wastewater budgets. It is safe to say that a revised study, with a lower starting cash position, would result in recommended rates higher than the initially-proposed 9.6% annual increase for the water enterprise fund in order to achieve systemwide water and wastewater needs.

Therefore, should the City Council decide not to move forward with the adoption of the amended ordinance, staff is seeking direction to initiate a new rate study process with the most updated performance results.

Background:

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. The Study has been available at City Hall and on the City’s website, and since its preparation
https://www.ci.yreka.ca.us/DocumentCenter/View/1518/Water-and-Wastewater-2023- Utility-Rate-Study. Preparation of the study by PACE began in December 2022. The study was published in September 2023. 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 with 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 evaluated the systems’ cost-of-service. City staff was 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”.

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 to be conducted November 21, 2023, and of the proposed rate increase.

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

December 19, 2023 Yreka City Council Agenda 166 of 177
334003.
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At the November 21, 2023, the City Council heard comment through the close of the public hearing. Written protests were accepted through the close of the public hearing.

After the close of the public hearing, the City Clerk tabulated the protests received and determined that a majority protest did not exist. The City Council then deliberated on the proposed ordinance, moved, and approved Ordinance No. 876 4-1 for second reading.

On December 5, 2023, the City Council met to consider the second reading of Ordinance for the Water and Wastewater Utility Rate Increase. After considering the Ordinance as presented, a revised Ordinance was introduced as-amended (first reading) changing the rates by 6.5% and 6.3% respectively for water and wastewater utilities. A motion was passed on a 3-1-1 vote to introduce for first reading as-amended an increase of the current rates by 6.5% and 6.3% for water and wastewater respectively, and to provide information on the fiscal impact of such revised increase in rates.

Fiscal Impact:

Detailed analysis of the cost of providing services and fiscal impact of the 9.6% and 9.3% increases are contained within the water and wastewater study. The current proposed rate increases will result in an estimated 6.5% increase in water and 6.3% wastewater fee revenue over the next five years.

That reduced increase in rates results in an estimated fee revenue of $19,265,000 over the next five years to the water fund, and an estimated fee revenue of $17,634,426 over the next five years to the wastewater fund. This is $1,765,000 less revenue than the initially proposed rate study for water and $1,727,778 less revenue than the initially proposed rate for wastewater.

Attachments:
[Proposed] Ordinance No. 876 As Amended.

Revenue Analysis for the Amended Rates
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Yreka City CouncilDecember 19, 2023

Yreka City Council
December 19, 2023