Agenda — Yreka City Council, August 19, 2025

Colleen Baker, Mayor
James Clair, Mayor Pro Tempore
Corey Middleton, Councilmember
Drake Davis, Councilmember
Paul McCoy, Councilmember
John Elsnab, Interim City Manager
Juliana Lucchesi, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
Melissa Sandberg, Human Res. Director
Cyndy Prohaska, City Clerk
Mark Gilman, Police Chief
Jerry Lemos, Fire Chief
Andrew Jared, City Attorney

YREKA CITY COUNCIL MEETING AGENDA
August 19, 2025
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.

The full agenda packet can be found on the City’s website at www.yrekaca.gov/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, and 24 hours before each special 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.yrekaca.gov/AgendaCenter.

Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to Government Code section 54953(f), 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. 5:30 PM CALL TO ORDER CLOSED SESSION:

2. PUBLIC COMMENT ON CLOSED SESSION ITEMS:

Public participation is limited to those items listed for closed session.

If your comments do not concern an item listed on this Agenda, please address the City Council at the next regular meeting.

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 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 meeting is being livestreamed and can be viewed on Siskiyou Media Council’s YouTube Channel https://www.youtube.com/channel/UCzx2GSYFCrgE5przvnzitXQ Yreka City Council Agenda
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• 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.

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

3. CLOSED SESSION:

The City Council will recess to Closed Session to discuss the following item(s). At the conclusion of the Closed Session, Open Session will reconvene and reportable action, if any, will be announced:
a. Conference with Legal Counsel – Existing Litigation (Government Code §54956.9) - Name of Case: Yreka Properties dba Yreka Truck Stop, ABS Development Company and A-1 Investments, LLC v. City of Yreka – Siskiyou County Case Number SCSC 24CV00401

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

5. ROLL CALL:

6. APPROVAL OF THE AGENDA:

7. PRESENTATIONS:
 Discover Siskiyou

8. PUBLIC COMMENTS:

Public participation is welcomed and invited at all City Council meetings. This time is set aside for residents to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the Regular Agenda, please address the Council when that item is open for public comment.

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

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.

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• Please speak into the microphone from the podium. The podium electronically adjusts up and down to accommodate speaker.
• Please address the Council as a whole.
• Please state your name for the record prior to providing your comments. • 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.

9. 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 July 29, 2025, through August 9, 2025. b. Quarterly Investment Report for June 2025.
c. Approval of the Minutes of the Regular Meeting held August 5, 2025. d. Motion to Authorize a Service Agreement with Bouchard Restoration Redding, Inc. dba SERVPRO for on-call Abatement Services.
e. Motion to Authorize the City Manager to enter into a Professional Services Agreement with Kosmont Financial Service in the amount of $35,000 for Evaluation of an EIFD within the City.

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

10. 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.

11. CITY BUSINESS:

City Attorney
a.Agenda Title: Discussion / Possible Action to Approve Resolution of a Municipal Tax Sharing Agreement Regarding Annexation of 3.2 acres within the County (APN 014-430-120) (Evans-Wilmarth Annexation).

Recommended City Council Action: Approval of Resolution 2025-30 of the City Council of the City of Yreka Approving a Municipal Tax Sharing Agreement between the County of Siskiyou and the City of Yreka Regarding the Distribution of Taxes Upon Annexation of Real Property to the City.

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City Manager
b.Agenda Title: Discussion / Possible action on Directing the City Manager to Develop a Part-Time Community Service Officer Classification and Recruit for the Position.

Recommended City Council Action: Motion to Direct the City Manager to Develop a Part-Time Community Service Officer Classification and Recruit for the Position.

Planning Manager
c.Agenda Title: Discussion/Possible Action on the Future of Planning Commission Recommended City Council Action: Give Direction to City Staff on whether to: (1) Dissolve the Planning Commission or (2) Keep the Planning Commission and Incorporate any Requested Changes. f. CITY MANAGER/STAFF REPORTS:

City Manager and Staff may make brief announcements or reports at this time. g. 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.
h. 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 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 Yreka City Council Agenda
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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 5:30PM on August 19, 2025 to the members of the governing agency, and caused the agenda to be posted on the City’s website at www.yrekaca.gov and posted at Yreka City Hall, 701 Fourth St., Yreka, California.
/s/: Cyndy Prohaska
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Settlement Account Par Book Market Interest Maturity Market Date Investment Number Amount Value Value Rate % Date Value % Certificates of Deposit
Various Multi-Bank Securities, Inc - PERSHING BANK *** RMB-034398 3,430,000.00 3,430,000.00 3,434,392.85 4.100% 0-5 years 100.13% Cash and Equivalents
6/30/2025 Local Agency Investment Fund - LAIF *** 98-47-996 26,298,956.09 26,298,956.09 26,202,071.84 4.269% NONE 99.63% 6/30/2025 Multi-Bank Securities, Inc - PERSHING BANK *** - Cash RMB-034398 32,315.99 32,315.99 32,315.99 0.000% NONE N/A 6/30/2025 Mechanics Bank- Checking xxxxxxx5102 1,805,568.04 1,805,568.04 1,805,568.04 0.010% NONE 100.00% 6/30/2025 Mechanics Bank-ZBA Credit Card Payments xxxxxxx6830 - - - 0.000% NONE N/A 6/30/2025 Mechanics Bank-SUMIT Non Adjudicated xxxxxxx4281 3,707.71 3,707.71 3,707.71 0.010% 100.00% 6/30/2025 Mechanics Bank-SUMIT Operating xxxxxxx2233 412,460.84 412,460.84 412,460.84 0.000% NONE 100.00% 6/30/2025 Mechanics Bank - Money Market xxxxxxx6505 505,544.71 505,544.71 505,544.71 3.040% NONE 100.00% 6/30/2025 Petty Cash - City Departments 1,200.00 1,200.00 1,200.00 NONE 100.00% TOTAL CASH AND INVESTMENTS $ 32,489,753.38 $ 32,489,753.38 $ 32,397,261.98 *** See supplemental data on Multi Bank Securities and LAIF Investment maturities, investment portfolio mix and yield Emily Aldrich, Finance Director
Approved by motion of the Yreka City Council at its meeting held Aug 19h, 2025.

Colleen Baker, City Mayor Emily Aldrich, Appointed City Treasurer

QUARTERLY INVESTMENT REPORT
June 30, 2025
The instruments of investments used this quarter are in direct relationship with the City's investment policy. It is the opinion of the Finance Director and City Treasurer that the next six (6) months expenditures will be met.

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YREKA CITY COUNCIL MEETING MINUTES
August 5, 2025
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.

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.yrekaca.gov/AgendaCenter.

1. 5:30 PM CALL TO ORDER CLOSED SESSION:

The meeting was called to order at 5:30pm.

2. PUBLIC COMMENT ON CLOSED SESSION ITEMS:

No public comment received on closed session items

3. CLOSED SESSION:

The City Council will recess to Closed Session to discuss the following item(s). At the conclusion of the Closed Session, Open Session will reconvene and reportable action, if any, will be announced:
a. Conference with real property negotiator (Govt Code §54956.8) This meeting is being livestreamed and can be viewed on Siskiyou Media Council’s YouTube Channel https://www.youtube.com/channel/UCzx2GSYFCrgE5przvnzitXQ Yreka City Council Agenda
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- Property: 915 S. Main Street and 927 S. Main Street
- Agency Negotiator: John Elsnab
- Negotiating Parties: Pacific Realty Associates
- Under negotiation: Price and terms

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

The meeting was called to order at 6:30 pm.

Closed session adjourned at 6:11 pm.

There was no reportable action in closed session

5. ROLL CALL:

Councilmembers Davis, McCoy, Middleton, Clair & Baker are present

6. APPROVAL OF THE AGENDA:

Agenda approved as presented with Agenda Item 11.d tabled and moved to the August 19th City Council meeting.

MOTIONED: Councilmember Middleton
SECOND: Councilmember Clair
AYES: Councilmembers Davis, McCoy, Middleton, Clair & Baker NO’s: -0-
The motion passes unanimously

7. PRESENTATIONS: (NONE)

8. PUBLIC COMMENTS:

Public comment received by: Jan Osborn, Luther Finley, Dawnmarie Autry & Andreas Economopolis

9. 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 July 6, 2025, through July 26, 2025. b. Cash Balances, Budget to Actual and Fiscal Performance Reports for May 2025. c. Treasures Report for May 2025.
d. Approval of the Minutes of the Regular Meeting held July 15, 2025. e. Approval of the Minutes of the Special Meeting held July 23, 2025. f. Approval of the Purchase of “First Due” Reporting Software for Yreka Fire Department.

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

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

MOTIONED: Councilmember Clair
SECOND: Councilmember Middleton
AYES: Councilmembers Davis, McCoy, Middleton, Clair & Baker NO’s: -0-

The motion passes unanimously

10. PUBLIC HEARINGS:

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

Planning Manager
a. Agenda Title: 2024-25 Deer Creek Tentative Parcel Map: Public Hearing Recommended City Council Action: Motion to Approve Resolution 2025-29 of the City Council of the City of Yreka Approving Tentative Parcel Map No. 2024-25 for the Subdivision of One 46.27 Acre Parcel into Four Parcels with Conditions and Adoption of a Class 15 Categorical Exemption from the California Environmental Quality Act.

Public comment received by: Marilyn Anderson, Louise Gliatto, Jan Osborn & Dusty Veal Motion to Approve Resolution 2025-29 of the City Council of the City of Yreka Approving Tentative Parcel Map No. 2024-25 for the Subdivision of One 46.27 Acre Parcel into Four Parcels with Conditions and Adoption of a Class 15 Categorical Exemption from the California Environmental Quality Act.

MOTIONED: Councilmember Middleton
SECOND: Councilmember McCoy
AYES: Councilmembers Davis, McCoy, Middleton, Clair & Baker NO’s: -0-
The motion passes

11. CITY BUSINESS:

City Manager
a.Agenda Title: Second Reading of Ordinance No. 882 Amending Chapters 2.28 and 9.48 Concerning the Fire Department.

Recommended City Council Action: (1) Motion to waive full reading of Ordinance; And Approve Second Reading of Ordinance 882 Titled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YREKA, CALIFORNIA AMENDING CHAPTER 2.28 OF THE YREKA MUNCIPAL CODE ENTITLED “FIRE DEPARTMENT” AND CHAPTER 9.48 “MISCELLANOUS OFFENCES” AND FINDING ORDINANCE EXEMPT FROM CEQA; and (2) Direct City Clerk to publish a summary of Ordinance 882 consistent with Government Code Section 36933; and (3) The City Manager is directed to take all other actions required for adoption and implementation of Ordinance 882.

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No public comment was received.

Motion to waive full reading of Ordinance; And Approve Second Reading of Ordinance 882 Titled: AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YREKA, CALIFORNIA AMENDING CHAPTER

2.28 OF THE YREKA MUNCIPAL CODE ENTITLED “FIRE DEPARTMENT” AND CHAPTER 9.48 “MISCELLANOUS OFFENCES” AND FINDING ORDINANCE EXEMPT FROM CEQA; and (2) Direct City Clerk to publish a summary of Ordinance 882 consistent with Government Code Section 36933; and (3) The City Manager is directed to take all other actions required for adoption and implementation of Ordinance 882.

MOTIONED: Councilmember McCoy
SECOND: Councilmember Davis
AYES: Councilmembers Davis, McCoy, Middleton, Clair & Baker NO’s: -0-
The motion passes
City Manager
b.Agenda Title: Second Reading of Ordinance No. 884 Amending Yreka Municipal Code Chapter 2.54 “City Property – Trespassing”.

Recommended City Council Action: (1) Motion to waive full reading of Ordinance; And Approve Second Reading of Ordinance 884 Titled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YREKA, CALIFORNIA AMENDING CHAPTER 2.54 TO THE YREKA MUNICIPAL CODE ENTITLED “CITY PROPERTY-TRESPASSING” AND FINDING SUCH ORDINANCE EXEMPT FROM CEQA; and (2) Direct City Clerk to publish a summary of Ordinance 884 consistent with Government Code Section 36933; and (3) the City Manager is directed to take all other actions required for adoption and implementation of Ordinance 884.

No public comment was received.

Motion to waive full reading of Ordinance; And Approve Second Reading of Ordinance 884 Titled: AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YREKA, CALIFORNIA AMENDING CHAPTER

2.54 TO THE YREKA MUNICIPAL CODE ENTITLED “CITY PROPERTY-TRESPASSING” AND FINDING SUCH ORDINANCE EXEMPT FROM CEQA; and (2) Direct City Clerk to publish a summary of Ordinance 884 consistent with Government Code Section 36933; and (3) the City Manager is directed to take all other actions required for adoption and implementation of Ordinance 884.

MOTIONED: Councilmember McCoy
SECOND: Councilmember Middleton
AYES: Councilmembers Davis, McCoy, Middleton, Clair & Baker NO’s: -0-
The motion passes.

Planning Manager
c.Agenda Title: Inclusionary Housing and Commercial Linkage Fee Policy Analysis Recommended City Council Action: Provide direction to staff on writing Inclusionary Housing Ordinance and/or conducting a Commercial Linkage Fee Analysis.

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Public comment received by: Andreas Economopolis, Lorenzo Love & Jan Osborn Council has directed city staff to prepare an Inclusionary Housing Ordinance, and to prepare a Nexus Study in preparation for developing a Commercial Linkage Fee Ordinance.

City Attorney
d.Agenda Title: Discussion / Possible Action to Approve Resolution of a Municipal Tax Sharing Agreement Regarding Annexation of 3.2 acres within the County (APN 014-430-120) (Evans-Wilmarth Annexation).

Recommended City Council Action: Approval of Resolution 2025-30 of the City Council of the City of Yreka Approving a Municipal Tax Sharing Agreement between the County of Siskiyou and the City of Yreka Upon Annexation of Real Property at APN 014-430-120 (Evans).

The City Attorney has requested that this item get tabled to the August 19th City Council Meeting. f. CITY MANAGER/STAFF REPORTS:

City Manager John Elsnab gave an update.

Police Chief Mark Gilman gave an update.
g. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

Councilmember Middleton gave an update on COC.

Councilmember Davis gave an update on Fire Safe Council.

Councilmember McCoy gave an update.

Councilmember Clair gave an update on Citizen of the Year Committee.

Councilmember Baker gave an update.
h. ADJOURNMENT:

The meeting adjourned at 8:06 PM
____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on August 19, 2025
___________________________
Cyndy Prohaska, City Clerk
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SERVPRO On-Call
Abatement Contract
To: City Council
From: Juliana Lucchesi, AICP, Assistant City Manager
Subject: Authorization for Interim City Manager to Enter into Contract for On-Call Abatement Service with ServPro
Attachments: SERVEPRO Response to RFQ
Summary:

The City of Yreka Code Enforcement Department is charged with enforcing regulations and standards to ensure the health, safety, and welfare of the community. Some of the code enforcement cases require the City to intervene quickly to resolve imminent threats to the public or cases where property owners are non-responsive to enforcement communications. These cases lead the City to directing the abatement of the nuisance through an abatement order. The abatement actions need to be completed quickly to address the imminent threat or comply with a limited timeframe in an abatement order.

The City of Yreka issued a Request for Qualifications (RFQ) to obtain proposals from qualified entities to perform abatement services. The RFQ required that responding parties be able to conduct property abatement, including property improvement, lawn care, collecting debris, dismantling unpermitted structures, removing trash, and disposing of all debris at an appropriate disposal site.

Contractors would be required to identify and dispose of materials excluded from disposal at landfills (i.e., hazardous waste, universal waste, medical waste, and other items banned from landfills and transfer stations) and arrange for proper disposal at a site permitted to accept such material. Cost of services would be inclusive of labor, equipment and materials.

The RFQ was open December 2024 to the end of January 2025. The City received no responses and the deadline was extended to the end of April 2025. The City received two proposals with one of the companies withdrawing their proposal.

The final respondent was Bouchard Restoration Redding doing business as SERVPRO.

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Staff recommends that the City Council authorize the City Manager to enter into a contract for on-call services with Bouchard Restoration Redding, Inc. dba SERVPRO for on-call abatement services, not to exceed those amounts within the City budget for such services or as recoverable costs. The contract would allow for specific engagements to occur with specific scope of work for each assigned project through work orders.

Fiscal Impact:

Abatement services are typically a recoverable cost for the City of Yreka through the code enforcement process. The labor and equipment rates outlined in the attached proposal for services are all eligible costs to be recovered from property owners. To the extent services are not recoverable, the engagement would not exceed the authority for the City Manager to execute contracts.

The City may choose to utilize SERVPRO for city projects which would have a specific cost and scope of work that would be approved prior to expenditure.

Recommended Actions:

1. Motion to authorize a service agreement with Bouchard Restoration Redding, Inc. dba SERVPRO for on-call abatement services Yreka City Council Agenda
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Kosmont Contract for EIFD
Feasibility Study
To: City Council
From: Juliana Lucchesi, AICP, Assistant City Manager
Subject: Discussion/Possible Action: Authorization for City Manager to Enter into Contract with Kosmont Financial Services in the Amount of $35,000 to Prepare an Enhanced Infrastructure Financing District Feasibility Study
Attachments: 1. Kosmont Financial Services Proposal for Financing District Advisory
Summary:

Enhanced Infrastructure Financing Districts (EIFDs) reprAesent California's primary municipal infrastructure financing tool since redevelopment agency dissolution, offering Yreka a potential mechanism to stimulate commercial development through strategic infrastructure investments. EIFDs can provide dedicated infrastructure funding without raising taxes, but success depends on robust growth projections, agency partnerships, and sustained political commitment.

The timing may be favorable given recent positive economic developments including the Carnegie Library, improvements to Highway 3, the City’s Fire Hall project, ongoing code enforcement efforts to improve properties, and revitalization efforts. These initiatives could provide the foundation for a successful EIFD focused on commercial development in the southern business corridor, northern downtown area, or eastern industrial expansion zones.

City Staff contacted Kosmont Financial Services, due to their involvement in the Mt. Shasta EIFD formation, to understand the potential for an EIFD within Yreka.

Kosmont Financial Services has prepared a scope of work and budget to prepare the initial feasibility study stage for an EIFD for City Council consideration to investigate the potential of this finance tool to help the City expand commercial and industrial businesses.

Background:

Enhanced Infrastructure Financing District legislation was established in 2012 to address the need for financial tools for local governments to stimulate Yreka City Council Agenda
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redevelopment. Prior to EIFD’s, California had redevelopment agencies that provided mechanisms for municipal infrastructure financing. These redevelopment agencies were discontinued due to political pressure and inconsistent application across the state.

The concept of an EIFD is to capture future property tax growth within a designated area to fund infrastructure improvements, without raising taxes or creating new assessments on property owners. When property values increase due to development or market appreciation, the additional tax revenue above a frozen “base year” amount is redirected to fund public infrastructure projects that benefit the broader community.

How Tax Increment Financing Work
There are three key concepts to understand tax increment financing. The first is the “base year” when the property tax revenue freezes. All the participating taxing agencies continue to receive their normal share of property taxes based on these frozen values. Secon, the “increment” represents future growth in property tax revenue above the base year levels. This growth typically comes form new development, property improvements, or general market appreciation.

Third, the participating entities agree to redirect their share of increment growth to fund EIFD projects rather than receiving it in their general funds.

For example, if a property generates $10,000 in annual property tax revenue in the base year and grows to $15,000 after development improvements, the $5,000 increment can be captured for EIFD projects. The property owner pays no additional taxes. The increment represents growth in existing tax revenue due to increased property values.

This mechanism provides sustainable, long-term funding that grows with community success. As infrastructure improvements attract development and increase property values, the resulting tax increment creates more resources for additional projects, establishing a positive cycle of investment and growth.

EIFDs operate within strict financial parameters designed to protect taxpayers and ensure responsible fiscal management. Districts can capture increment only from participating taxing entities, typically cities and counties, though special districts may also participate.

Bonds issued by EIFDs are secured solely by tax increment revenue, meaning they carry no obligation for city or county general funds. This protection comes with higher interest rates than general obligation bonds, reflecting the limited security.

Districts can also operate on a “pay-as-you-go” basis, spending increment as collected rather than borrowing against future revenue.

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The 45-year district life ensures EIFDs don't become permanent tax diversions.

Districts must demonstrate "community-wide significance" for their projects, preventing narrow benefits that primarily serve private interests.

Project Scope of Work:

The proposed scope of work to be completed by Kosmont Financial Services over a three to four month period is as follows:

Task 1: Overview of Tools and Evaluation of Boundary Alternatives Consultant will coordinate a kickoff meeting with the City to discuss the City’s objectives and initial thoughts on areas to be included in a potential financing district. Consultant will prepare and present an overview of relevant financing district tools. Based on input during initial discussions, Consultant will identify and evaluate up to three (3) potential boundary alternatives for a TIF district that could support the City’s objectives. Consultant will analyze key strategic implementation considerations, including:
a) Property ownership
b) Planned / proposed future development
c) Infrastructure needs and estimated costs
d) Potential public and private sector partners (e.g., City, County of Siskiyou, other affected taxing entities)
e) Overlap with former Redevelopment Agency Project Area boundaries and status of redevelopment dissolution
f) Potential to utilize alternative public financing approaches (e.g., lease revenue bond, State programs, other).

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e) Complementary economic development tools and funding resources (e.g., community facilities district [CFD] financing)
f) As related to potential overlap of proposed district boundaries with former redevelopment agency project areas, analysis of corresponding relevant outstanding enforceable obligations and implications on available revenues.

Task 3: Governance and Implementation Roadmap
Based on the preferred financing district tool(s) identified by the Client from the findings of previous Tasks, Consultant will evaluate and summarize feasible governance and implementation alternatives, including district governing board composition, voting / approval procedures, district formation milestones, debt issuance procedures, and estimated formation timing, in order to provide potential public and private sector stakeholders with an illustrative “roadmap” for implementation.

Task 4: Initial Meeting and Presentation Assistance
Consultant will coordinate a virtual meeting with City staff, City Council, and/or other key community stakeholders, such as residents, property owners, Karuk Tribe members, and/or local developers. Consultant will prepare and present a summary of feasibility analysis findings. As available budget may allow, Consultant will coordinate and participate in initial discussions with County of Siskiyou representatives (e.g., Administrative Office staff, Supervisorial Office representatives) and/or Karuk Tribe members regarding potential partnership in a TIF district.

The purpose of the initial meetings will be to facilitate education of key stakeholders, to vet initial interest in partnership, and ultimately to confirm whether or not to proceed into the financing district implementation phase.

Additional Project Tasks:

In addition to the proposed Kosmont scope of work, City Staff will work to coordinate Kosmont’s efforts with those of Calmuni and Weist Law Firm. Calmuni and Weist Law Firm are updating the City’s 20-year financial plan. The 20-year financial plan includes a review of the City’s long-term pension obligations, project 10-year revenues and expenditures, and develop a Capital Improvement Plan for the City’s assets. The combination of efforts will give a better outlook on if the implementation of an EIFD would benefit the City of Yreka in the long-term.

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Fiscal Impact:

The proposed budget for the scope of services is $35,000.00 which is included in the current(fiscal year 2025-2026) city budget.

Recommended Actions:

1. Motion to authorize the Interim City Manager to enter into professional services agreement with Kosmont Financial Service in the amount of $35,000 for the evaluation of an EIFD within the City
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June 12, 2025
John Elsnab
Interim City Manager
City of Yreka
701 4th Street
Yreka, CA 96097
Re: Proposal for Financing District Advisory
Dear Mr. Elsnab:

Kosmont Transactions Services, Inc. doing business as Kosmont Financial Services (“Consultant” or “KFS”) is pleased to present this proposal to the City of Yreka (“City” or “Client”) for Financing District Advisory services. Consultant is an Independent Registered Municipal Advisor (“IRMA”) with the U.S. Securities and Exchange Commission (“SEC”) and the Municipal Securities Rulemaking Board (“MSRB”). This proposal serves as an Agreement when executed and returned by Client to Consultant.

I. BACKGROUND AND OBJECTIVE
The City has expressed interest in assistance from the Consultant related to the evaluation of a tax increment financing (“TIF”) district, such as an Enhanced Infrastructure Financing District (“EIFD”) and/or Climate Resilience District (“CRD”), encompassing economic development opportunity areas in northern Yreka (“four corners”), southern Yreka near Walmart, along Philippe Lane, and other sites. As the State’s leader in evaluation and implementation of TIF districts among other economic development expertise, Consultant proposes the following Scope of Services.

II. SCOPE OF SERVICES
Approach to Tasks: The prospective assignment and consulting services that Consultant will provide will be of a relatively limited scope and duration, and advisory in nature. Consultant will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Consultant’s staff will act in a capacity as an elected official, nor as an appointed official, nor as staff, nor as serving in a "designated" position.

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Task 2: Revenue and Bonding Capacity Analysis
Consultant will prepare a tax increment revenue analysis that will identify:
a) Potential assessed value increase from future development within the preferred boundary alternative(s)
b) Property tax increment funding capacity at selected annual benchmarks and cumulatively over the estimated district lifetime(s)
c) Different levels of tax increment revenue allocation by taxing entity (e.g., 25%, 50%) d) Initial estimates of potential bonding capacity
e) Complementary economic development tools and funding resources (e.g., community facilities district [CFD] financing)
f) As related to potential overlap of proposed district boundaries with former redevelopment agency project areas, analysis of corresponding relevant outstanding enforceable obligations and implications on available revenues.

Consultant will prepare and present a summary of feasibility analysis findings. As available budget may allow, Consultant will coordinate and participate in initial discussions with County of Siskiyou representatives (e.g., Administrative Office staff, Supervisorial Office representatives) and/or Karuk Tribe members regarding potential partnership in a TIF district.

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Potential Future Services
• Further discussions and Negotiations with City and County Representatives on Financing District Terms
• City / County / Other Taxing Entity Fiscal Impact Analysis • Resolution of Intention and Establishment of the Governing Public Financing Authority • Infrastructure Financing Plan Preparation
• Infrastructure Financing Plan Approval and Financing District Formation Meetings and Hearings
• State Board of Equalization Financing District Boundary Application • Annual Compliance Report Preparation, Related Presentations at PFA Public Hearings • Continuing Disclosure as related to Financing District debt transactions EIFD-Related Municipal Advisory Services
City and KFS agree that evaluation or implementation of any EIFD-related public financings (e.g., tax increment allocation bonds) will involve KFS as the City’s Municipal Advisor or co-Municipal Advisor on a to-be-determined compensated basis.

III. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Agreement and project data outlined below. A summary PowerPoint presentation with separate analysis detail exhibits characterizing findings from Tasks 1 through 4 is anticipated to be delivered within three (3) to four (4) months from assignment authorization. Timing of stakeholder briefings will be contingent on stakeholder availability.

Client will provide Consultant with existing project data, including relevant planning documentation, project site plans, and information related to potential infrastructure improvements with estimated range of costs, as available.

IV. COMPENSATION
The compensation for Tasks 1 through 4 is outlined below for professional services (hourly) fees at Consultant’s billing rates as reflected in Attachment A.

TASK ESTIMATED BUDGET
1) Overview of Tools and Evaluation of Boundary Alternatives $9,500 2) Revenue and Bonding Capacity Analysis $10,500
3) Governance and Implementation Roadmap $5,000
4) Initial Meeting and Presentation Assistance $10,000
Estimated Total Professional Services (Hourly) Fees $35,000 Yreka City Council Agenda
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Budget may be increased by Client request at any point in time. Task budgets may be allocated between Tasks as deemed appropriate by Consultant to provide adequate services to the Client.

Full payment must be received by Consultant before the final written summary or report of Consultant’s findings is released to Client.

Consultant is prepared to commence work upon receipt of executed Agreement.

Consultant anticipates a single consolidated round of Client comments and revisions on draft work product before Consultant provides a final version of work product. If necessary, additional rounds of comments and revisions can be accommodated on an hourly basis.

Consultant’s attendance or participation at any publicly noticed meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other), as requested by Client is in addition to compensation for Tasks 1 through 4 and will be billed at the professional services (hourly) fees as shown on Attachment A.

Services will be invoiced monthly at Consultant’s standard billing rates, as shown on Attachment A.

In addition to professional services (hourly) fees, invoices will include reimbursement for out-ofpocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations.

Consultant will also include in each invoice an administrative services fee to cover in-house copy, fax, telephone and postage costs equal to four percent (4.0%) of Consultant’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum.

For the convenience of Consultant’s clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment:

1. Fill in the “Make a Payment” form when you go to the link (https://kosmont.paidyet.com), or

2. Call Consultant's accounting desk (424) 297-1072 to make a credit card payment V. INFORMATION RELATED TO THE ESTABLISHMENT OF AN INDEPENDENT

REGISTERED MUNICIPAL ADVISORY RELATIONSHIP AND OTHER DISCLOSURES Duties and Responsibilities of KFS
As an IRMA, KFS has a duty of care and loyalty to Client and has a fiduciary obligation to provide advice and conduct Municipal Advisory Activities in a manner that is in Client’s best interests, not ours or those of any other party.

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Disclosure of Material Conflicts
Circumstances when payment of KFS’s professional fees is contingent upon a successful closing of any financing present an unavoidable conflict related to KFS advising Client whether to proceed with such financing. Receiving compensation upon a successful closing is an industry standard. KFS is accustomed and willing to work “at risk” when required and believes this conflict can and will be properly managed and mitigated, as is the case with other engagements KFS regularly undertakes.

This conflict is naturally removed when KFS’s compensation is based solely on an hourly (time and materials) basis (as is proposed herein).

Other than as stated above, KFS is not aware of any other conflicts that currently exist or that may come to exist by engaging in Municipal Advisory Activities with Client.

Disclosure of Legal or Disciplinary Events
Neither KFS, its principles, nor its Municipal Advisor Professionals assigned to Client have ever been the subject of any legal or disciplinary actions or events that may be material to Client’s evaluation of KFS or the integrity of our management or personnel.

Termination of IRMA Relationship
Each of Client and KFS is free to terminate this IRMA relationship at any time by giving notice to the other party. While Client may ultimately undertake the issuance of municipal securities, such event will not necessarily trigger an automatic termination of the IRMA relationship that KFS has with Client. It is presently anticipated that KFS will continue to perform municipal advisory activities for Client at Client’s pleasure and on an ongoing basis.

Compensation for Possible Future Real Estate Evaluation or Brokerage Services The following is being provided solely as an advance disclosure of real estate brokerage services and potential compensation for such services. This disclosure is not intended to commit the Client.

When assignments involve real estate/property brokerage services, such transaction-based services are typically provided by Kosmont Real Estate Services, Inc. doing business as Kosmont Realty (“KR”). KR is licensed by the State of California Department of Real Estate (License# 02058445).

Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value (“BOV”) services on a fixed fee basis.

VI. Other Provisions
A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full.

B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the Yreka City Council Agenda
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extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge. The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery of the arbitration award. Judgment upon the award rendered shall be final and non-appealable and may be entered in any court having jurisdiction.

C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered.

D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms have executed this Agreement.

E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.

F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.

G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

H. Entire Agreement; Amendments and Waivers. This Agreement contains the final, complete and exclusive agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.

I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.

J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, or transmitted by telecopier, electronic, or other digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a Yreka City Council Agenda
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recognized overnight delivery service (e.g., FedEx), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph.

K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend, or describe the scope of this Agreement or the intent of any provision herein.

L. Governing Law. The statutory, administrative, and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement.

M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.

N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement, shall have the same full force and effect as such person's original signature.

O. Disclaimer. Consultant’s financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in any analysis performed by consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of other factors that could materially affect the data and conclusions. Client’s reliance on Consultant’s analysis must consider the foregoing.

Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates are deemed to be based on Client’s understanding, and by execution of this Agreement, acknowledgement that Consultant’s services are advisory only and as such cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between Client and Consultant.

Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.

P. Limitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount of compensation Consultant has received from Client.

Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; Yreka City Council Agenda
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earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; riots; wide-spread power failures and wide-spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay.

R. Expiration of Proposal for Services. If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire.

S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal advice, or legal opinion.

Client should seek independent legal counsel on matters for which Client is seeking legal advice.

VII. ACCEPTANCE AND AUTHORIZATION
If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to KFS. Upon receipt of both signed contracts, we will return one fully executed original for your files. KFS will commence work upon receipt of executed Agreement.

Read, understood, and agreed to this
____ Day of ________________, 2025.

City of Yreka Kosmont Transactions Services, Inc. dba
Kosmont Financial Services
By: _________________________ By: _________________________ (Signature) (Signature)

Name: __________________________ Name: Larry J. Kosmont, CRE® (Print Name)

Its: _________________________ Its: President
(Title)
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ATTACHMENT A
Kosmont Financial Services
2025 Public Agency Fee Schedule
Professional Services
President & CEO $525.00/hour
Sr. Managing Director / Sr. Vice President / Senior Advisor $395.00/hour Vice President $295.00/hour
Senior Project Analyst $205.00/hour
Project Analyst / Project Research $195.00/hour
Assistant Project Analyst / Assistant Project Manager $165.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 80.00/hour
• Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Financial Services professional service fees incurred; plus 2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest, Refinitiv and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A. • Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.

Rates Effective until December 31, 2025. For and during the term of the subject Agreement, the above referenced rates in each category will be increased, effective January 1, 2026, and annually thereafter, to reflect the adjustment in the CPI (U.S. Dept. of Labor, Bureau of Labor Statistics) All Cities Average Consumer Price Index for the prior year. As an example, the US City Average Consumer Price Index (CPI-U) for January 2025 was 317.671, representing a change of 3.0 percent over the index for January 2024.

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: John Elsnab, Interim City Manager
Prepared by: Andrew L. Jared, City Attorney
Agenda title: Discussion/Possible Action to Approve Resolution of a Municipal Tax Sharing Agreement Regarding Annexation of 3.2 acres within the County (APN 014- 430-120) (Evans-Wilmarth Annexation).

Meeting date: August 19, 2025
Introduction:

This matter addresses the tax allocation issues associated with a single annexation application and allows the applicant to proceed with the LAFCO process. Approval of this resolution does not bind the City as to any action regarding any annexation application. This is not a consideration of the annexation itself.

Discussion:

In the Fall of 2023, an application was submitted to the Siskiyou County Local Agency Formation Commission (LAFCO) by Rick Evans to increase the size of a parcel within the City of Yreka from

2.12 acres by adding approximately 3.2 acres from a second parcel in the unincorporated area of the County through the annexation process into the City of Yreka. The annexation application starts a statutory process for the City and County to negotiate and potential exchange tax revenue for the proposed area to be annexed. As part of this process, the county auditor was required to notify the City and County of the amount of property tax revenue subject to negotiation and exchange between the agencies, and the two agencies negotiate the sharing of current and future tax revenue.

LAFCO cannot proceed with processing the property owner’s application to annex the unincorporated land into the City, unless the City and County reach agreement on the wany in which the following will be shared between the City and County: 1) the Siskiyou County General Fund portion of the base property tax, 2) the South Yreka Fire Protection District portion of the base property tax, and 3) the annual tax increment. The Siskiyou County General Fund portion and the South Yreka Fire Protection District portions will stay static after annexation, however, the increment portion will increase over time based on increased property values due to reassessment and future development.

After thorough negotiations by the County and City through the statutory procedure governing tax sharing procedures, the County has proposed the attached Municipal Tax Sharing Agreement for this parcel whereby the County shall retain 100% of the General Fund portion of the Base Property Tax Revenues, that City shall be allocated the South Yreka Fire Protection District’s portion of the Base Property Tax Revenue, and the Incremental Property Tax Revenues available for allocation shall be allocated 50% to City and 50% to County. (See Ex. A, “Municipal Tax Sharing Agreement Between The County Of Siskiyou And The City Of Yreka Regarding The Distribution Of Taxes Upon Annexation Of Real Property To The City”, to Attachment 1, “(DRAFT) Resolution No.

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2025-30 Resolution of the City Council of the City of Yreka Approving A Municipal Tax Sharing Agreement Between The County Of Siskiyou And The City Of Yreka Upon Annexation Of Real Property at APN 014-430-120 (Evans)”.)
On August 12, 2025, the County approved the proposal in the attached resolution, correcting a prior resolution that included an incorrect reference to prior County action. This matter was removed from the August 5 City Council agenda to address that issue.

The attached resolution deals only with the tax allocation issues associated with the annexation application and allows the applicant to proceed with the LAFCO process. Approval of this resolution does not bind the City as to any action regarding the Evans Annexation application. This is not a consideration of the annexation itself.

Moreover, approval of this resolution does not bind the City or County as to any future annexation application.

The City and County have expressed an interest through the negotiation process to further discuss some of the difficult issues that face both jurisdictions.

Fiscal Impact:

Minimal with this action. The nature of the proposed annexation and development potential of the three acres at issue have a minimal effect on the General Fund expenses. The resolution does not obligate the City as to any other parcel.

Recommendation and Requested Action:

That the Council approve the attached resolution (Att. A).to approve the Municipal Tax Sharing Agreement Between the County of Siskiyou and the City of Yreka Regarding the Distribution of Taxes Upon Annexation of Real Property to the City (Ex. 1 to Att. A).

Attachment:

A. (Draft) Resolution No. 2025-30 Resolution of City Council of the City of Yreka Approving a Municipal Tax Sharing Agreement Between the County of Siskiyou and the City of Yreka Upon Annexation of Real Property at APN 014-430-120 (Evans) (Including Ex. 1 to Attachment A)
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RESOLUTION NO. 2025-30

RESOLUTION OF CITY COUNCIL OF THE CITY OF YREKA

APPROVING A MUNICIPAL TAX SHARING AGREEMENT

BETWEEN THE COUNTY OF SISKIYOU AND THE CITY OF YREKA
UPON ANNEXATION OF REAL PROPERTY AT APN 014-430-120 (EVANS) WHEREAS, an application was submitted to the Siskiyou County Local Agency Formation Commission (LAFCO) by Rick Evans to annex an approximate 3.2 acre parcel (APN 014-430-120) presently in the unincorporated area of the County into the City of Yreka (LAF-23-01);
WHEREAS, Section 99 of the California Revenue and Taxation Code requires that prior to LAFCO certifying an application for annexation of property into a city’s incorporated territory, the city and county affected by such annexation must agree upon an exchange of property taxes;
WHEREAS, Revenue and Taxation Code section 99 establishes the procedures governing the how the agencies proceed with coming to agreement but not computation of tax revenue between the parties; and
WHEREAS, the City and County have proceeded through the process under Revenue and Taxation 99 to negotiate the allocation of tax revenue as to this application.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Yreka, Siskiyou County, California, hereby approves the “Municipal Tax Sharing Agreement Between the County of Siskiyou and the City of Yreka Regarding the Distribution of Taxes Upon Annexation of Real Property to the City”, attached hereto as Exhibit 1, for the annexation of APN 014-430-120.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Yreka in a meeting thereof held on August 19, 2025, by the following:

VOTE
Ayes:

Nays:

Absent:

Signature: ____________________________________ Date: ___________ Colleen Baker, Mayor, City of Yreka
ATTEST
Signature: ____________________________________ Date: ___________ Cyndy Prohaska, City Clerk, City of Yreka
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Exhibit 1
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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: John Elsnab, Interim City Manager
Prepared by: John Elsnab, Interim City Manager
Agenda title: Discussion/Possible Action – Direct the City Manager to Develop a PartTime Community Service Officer Classification and Recruit for the Position Meeting date: August 19, 2025
Summary
At a recent regular city council meeting, the council was informed by the public of the increased need for police officers to respond to animal control complaints. Animal control complaints have continued over the last several months thus causing significant resources to be used by the Yreka Police Department to respond to calls for service. Animal control complaints have also had an impact on the staff required to maintain the kennels, which are maintained by the police department.

In order to address the increasing need for animal control and other non-emergency calls for service, the City believes creating a community service officer position will benefit the City while providing a service for the community. Additionally, a community service officer can assist with documenting property reports, property preservation, serving subpoenas, writing incident reports, working with the unhoused, and identifying abandoned vehicles within the City. A part-time community service officer will also help alleviate the daily call volume so sworn officers can prioritize calls for service accordingly.

The community service officer will be a part-time position that is intended to be utilized on a oncall or as-needed basis during staffing shortages. The hourly rate for the community service officer will be in the range of $20.00 to $25.00 per hour. This position can also be utilized as an entry level position when the Yreka Police Department is sponsoring cadets through the police academy.

Fiscal Impact:

The fiscal impact for the part-time community service officer position is not to exceed $30,000 per fiscal year, once funding is secured for the position.

Recommendation:

Motion to Direct the City Manager to Develop a Part-Time Community Service Officer Classification and Recruit for the Position.

Approved by: __________________________________
John Elsnab, Interim City Manager
Attachments:
• Community Service Officer Job Classification (draft)
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AUGUST 2025
FLSA STATUS: NON-EXEMPT

COMMUNITY SERVICE OFFICER

DEFINITION
Under general supervision, this is a part-time position that performs a variety of routine and complex nonsworn assignments in support of the City's Police Department. This position is responsible for assisting with animal control, municipal code enforcement, crime prevention programs, traffic control, parking enforcement, and making various reports for the department. Duties include interpretation and enforcement of adopted codes, ordinances, and related rules and regulations.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from assigned supervisory or management personnel. Exercises no supervision over staff.

CLASS CHARACTERISTICS
This is an entry-level class that performs the full range of duties related to community service activities including animal control, serving subpoenas, creating incident reports, public nuisance reporting, enforcing traffic ordinances, and identifying other issues relating to the health, safety, and general welfare of the community.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
 Respond to calls for assistance; gather information and compile standard reports for after-the-fact thefts, public accidents, malicious mischief, lost and found property, and missing persons.  Assist with serving subpoenas in coordination with law enforcement.  Perform animal control; patrols city streets apprehending and confining stray, unwanted, sick, maimed, lost and found animals or dead animals; investigates complaints, follows up on animal bite incidents, impounds domestic animals running at large in violation of the Municipal Code.  Conduct incident reports for missing persons, and lost or found property.  Respond to traffic calls and collisions to investigate complaints.  Perform evidence collection and preservation of property.  Communicate information regarding violations, code requirements and necessary steps to correct for compliance. Consults with owners and occupants regarding provisions of City code.  Assist the City's neighborhood watch program, domestic violence prevention programs and other specialized crime awareness and prevention programs to citizens, seniors and merchants.  Direct traffic and assist in crowd control.
 Conduct routine patrol for abandoned automobiles, and parking violations; coordinates contact for vehicle towing with police impound yard.

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 Serve as a parking enforcement officer; patrol city streets and enforces laws and regulations applicable to non-moving vehicles; write citations for overtime parking and illegal parking; assist in identifying and abating abandoned vehicles; assist in directing traffic and participating in special traffic control functions.
 Respond to calls for service related to people being locked out of their vehicles.  Act as a liaison for members of the community including the unhoused and homeless who need access or assistance to community services.
 Assist with cleanup projects for homeless camps and illegal campsites within areas of the City not permitted for use.
 Assist with cleaning and maintaining the animal control kennels.  Assist with unauthorized camping enforcement for the unhoused community.  Perform other duties as assigned.

QUALIFICATIONS
Knowledge of:
 Applicable state, federal and local laws, rules, ordinances and regulatory standards applicable to the community service officer.
 Evidence collection and preservation techniques.
 Investigative principles, methods, and techniques, as case management principles for the purpose of preserving evidence and establishing documentation and a written audit trail for legal purposes.  Record keeping, report preparation, filing methods and records management techniques.  Modern office practices, methods, and computer equipment which may include, but is not limited to, mobile technology and electronic devices, and software related to the work.  Techniques for providing a high level of customer service by effectively communicating with the public, vendors, contractors, and City staff.
 English usage, grammar, spelling, vocabulary, and punctuation.

Ability to:
 Interpret, apply and enforce applicable state, federal and local laws, codes, ordinances and regulations pertaining to the community.
 Uses and maintains computer system to enter case information and make reports.  Identify and enforce traffic and parking ordinances.
 Assess a situation and determine appropriate course of action for handling potentially dangerous animals in a safe manner.
 Use and maintain animal control equipment in a safe and effective manner.  Apply technical knowledge and follow proper inspection techniques, in the performance of community service officer duties.
 Identify and remove traffic hazards.
 Identify and tow abandoned vehicles.
 Prepare, maintain, and update accurate and detailed documentation of inspection findings and other written materials, records, logs, and reports.
 Effectively represent the City in meetings with other agencies, community groups, property owners, and the public.
 Use and maintain equipment in a safe and effective manner including communications equipment.  Perform work with minimalsupervision and to understand and carry out oral and written instructions.

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 Organize work, establish priorities, meet established deadlines, and follow up on assignments with a minimum of direction.
 Operate modern office equipment including computer equipment and software programs.  Use English to effectively to communicate, both orally and in writing.  Use initiative, prudence, and independent judgment within general policy and legal guidelines.  Show courtesy, tact and sensitivity to individual differences when dealing with people who are hostile, difficult and/or distressed.
 Organizes own work, sets priorities and meets critical deadlines for assignments.  Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work, including other City departments and outside agencies.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be Equivalent to the completion of the twelfth (12th) grade and one year of job-related experience in a related field.

Required Licenses and Certifications
 Possession of, or ability to obtain, a valid California Driver’s License by date of appointment.  Ability to possess and maintain a valid PC 832 certificate within one year from appointment

PHYSICAL DEMANDS
Work is performed in both office and field settings. Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle in order to respond to field visits; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. Considerable outdoor work is required when responding to calls for service in the community. This is primarily a field classification with frequent standing and walking, sometimes on uneven terrain. Hand and finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator; operate standard office equipment; and handle, feel or operate objects, tools, or controls. Positions in this classification are frequently required to sit; climb or balance; stoop, kneel, crouch, or crawl. Employee must possess the ability to occasionally lift, carry, push, and pull up to 50 pounds, or heavier weights with the use of proper equipment.

ENVIRONMENTAL ELEMENTS
Employee perform both office and field work, where they may be exposed to inclement weather conditions and hazardous physical substances. Employee may interact with frustrated or irritated individuals in interpreting and enforcing City codes, policies and procedures.

WORKING CONDITIONS
May be required to work a varied schedule of hours, which may include early mornings, evenings, weekends, and holidays.

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Discussion and Possible Direction on
the Future of the Planning Commission
To: Yreka City Council
From: Alia Roca Lezra, Planning Manager
Subject: Discussion and Possible Direction on the Future of the Planning Commission
Date: August 19, 2025
Purpose
The purpose of this item is to provide an opportunity for the City Council to discuss and provide direction on the future of the Planning Commission. There are two main options, the first being to dissolve the Planning Commission and have staff bring all future Planning items to the City Council, and the second being to keep the Planning Commission by recruiting more Planning Commissioners and work to improve it.

Background
The Planning Commission is meant to review land use issues, zoning, and development applications before they go to the City Council. However, the Commission is currently not functioning as intended. Only 2 of the 5 seats on the Commission are filled. Because of this, the group cannot meet quorum and has not been able to hold regular meetings, and as a result all planning items have been going to City Council. Staff began noticing the 3 vacant seats in April 2025 but have had difficulty finding volunteers to serve as Planning Commissoners.

Discussion
The discussion today is intended for staff and council members to discuss options for the future of the Planning Commission.

Option 1 is to dissolve the Planning Commission and transfer Commission duties to the City Council. This would speed up decision-making by removing a step in the project approval process, reduce staff time spent taking items to both Council and Commission, and avoid delays caused by lack of quorum. It would, however, increase the City Council’s workload on planning items. If this Option 1 is chosen, the municipal code would need to be updated, and all planning items would go directly to the City Council.

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Option 2 is to keep the Planning Commission and maintain the status quo. This allows for public involvement in land use decisions and decreases the Council’s workload assigning land use and zoning projects to the Planning Commission.

However, staff have had to cancel several meetings in the last year as there have been minimal items to bring to the Planning Commission, the Commission has had trouble meeting quorum, and staff have had trouble recruiting new commissioners. If Option 2 is chosen, the City will need to recruit new commissioners and possibly consider changes to how the Commission operates, such as adjusting the number of Commissioners or altering the frequency of meetings.

Recommendation
Give direction to staff on whether to:

1. Dissolve the Planning Commission

2. Keep the Planning Commission and incorporate any requested changes Yreka City Council Agenda
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Yreka City CouncilAugust 19, 2025

Yreka City Council
August 19, 2025