Agenda — Yreka City Council, September 16, 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
September 16, 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.

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
September 16, 2025

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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 Real Property Negotiator (Government Code §54956.8) - Property APNs:
041-020-130
041-030-200
004-370-020
004-370-010
414E2400
414E2401
- Agency Negotiator: Assistant City Manager, Juliana Lucchesi - Negotiating Parties: PacifiCorp
b. Conference with real property negotiator (Govt Code §54956.8) - Property: 915 S. Main Street and 927 S. Main Street
- Property APNs:
061-163-010
061-272-030
061-272-070
061-281-010
- 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:

5. ROLL CALL:

6. APPROVAL OF THE AGENDA:

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7. PRESENTATIONS:
 Yreka Fire Department – Welcoming Marquis Smith

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. • 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 August 10, 2025, through September 6, 2025. b. Approval of the Minutes of the Regular Meeting held August 19, 2025. c. Approval of the Minutes of the Special Meeting held August 27, 2025. d. Approval of the Minutes of the Special Meeting held September 9, 2025. e. Motion to Direct the City Manager to Waive the Park Reservation Fee for the Special Event Known as the “2025 Yreka Elks Invitational”
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.

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vi. Mayor will close the Public Hearing.
vii. City Council will deliberate and act on the item.

11. CITY BUSINESS:

Municipal Projects Manager
a.Agenda Title: Discussion/Possible Action: Adopt Resolution 2025-31 Authorizing the City Manager to Award a Construction Contract to RTA Construction, Inc. for the Water Supply and Storage Improvements Project in the Amount of $6,744,000.00 for the Base Bid, and to Execute Related Documents.

Recommended City Council Action: Motion to Adopt Resolution 2025-31 of the City Council of the City of Yreka Authorizing the City Manager to Award a Construction Contract to RTA Construction, Inc. for the Water Supply and Storage Improvements Project in the Amount of $6,744,000.00 for the Base Bid, and to Execute Related Documents.

City Attorney
b.Agenda Title: Discussion/Possible Action: Motion to Adopt Resolution 2025-32 Concerning the Purchase of Assessor Parcel Numbers 061-163-010, 061-272-030, and 061-272-070 for $850,000, and Authorizing Acceptance of Real Property from Pacific Realty Associates.

Recommended City Council Action: Motion to Adopt Resolution 2025-32 Approving the “Purchase and Sale Agreement and Joint Escrow Instructions” Concerning Purchase of Assessor Parcel Numbers 061-163-010, 061- 272-030, and 061-272-070 for $850,000, and Authorizing Acceptance of Real Propertyfrom Pacific Reality Associates, L.P.

Assistant City Manager
c.Agenda Title: Discussion/Possible Action: Adoption of Siskiyou County Active Transportation Plan recommendations as the City of Yreka’s Active Transportation Plan.

Recommended City Council Action: Motion to Adopt Resolution 2025-33 of the City Council of the City of Yreka Adopting the Siskiyou County Active Transportation Plan as the City of Yreka Active Transportation Plan.

Planning Manager
d.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.

Assistant City Manager
e.Agenda Title: Introduction of Proposed Cannabis Ordinance Update Recommended City Council Action: Discussion only. No Action. 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.

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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 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 September 16, 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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YREKA CITY COUNCIL MEETING MINUTES
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.

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 5:30 pm.

Councilmembers McCoy and Clair are absent.

2. PUBLIC COMMENT ON CLOSED SESSION ITEMS:

There was no public comment 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:

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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:

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

There was no reportable action in closed session.

5. ROLL CALL:

Councilmembers Davis, Middleton & Baker are present. Councilmembers Clair and McCoy are absent.

6. APPROVAL OF THE AGENDA:

Motion to Approve Agenda as Presented with item 11.c being tabled to the September 16, 2025, City Council meeting.

MOTIONED: Councilmember Baker
SECOND: Councilmember Davis
AYES: Councilmembers Davis, Middleton & Baker
ABSENT: Councilmembers McCoy & Clair
The motion passes.

7. PRESENTATIONS:
 Discover Siskiyou

8. PUBLIC COMMENTS:

Public comment received by: Lorenzo Love, Jan Osborn, Louise Gliatto, Heather Cipollone & Leeanna Tello

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.

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Motion to Adopt Consent Agenda Items 9.a through 9.d only of the City Council of the City of Yreka MOTIONED: Councilmember Davis
SECOND: Councilmember Middleton
AYES: Councilmembers Davis, Middleton & Baker
NO’s: -0-
ABSENT: Councilmembers Clair and McCoy
The motion passes.

Public comment for agenda item 9.e received by: Dawnmarie Autry & Lorenzo Love 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.

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

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.

Public comment received by: Rick Evans
Motion to Approve 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.

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

Public comment received by: Jan Osborn, Lorenzo Love & Leeanna Tello Motion to Direct the City Manager to Develop a Part-Time Community Service Officer Classification and Recruit for the Position.

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

Mayor Baker requested that this item be tabled to the September 16th City Council meeting so that all members of council be present for the discussion of the future of Planning Commission. f. CITY MANAGER/STAFF REPORTS:

Interim City Manager John Elsnab gave an update.
g. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

Councilmember Davis gave an update on Fire Safe Council.

Councilmember Middleton gave an update on COC.

Councilmember Baker gave an update.
h. ADJOURNMENT:

Meeting adjourned at 7:40 pm
____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on September 16, 2025
___________________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
September 16, 2025

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YREKA CITY COUNCIL SPECIAL MEETING MINUTES
Wednesday, August 27, 2025, at 9:00 AM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA 96097 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.

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. 9:00 AM CALL TO ORDER CLOSED SESSION
The meeting was called to order at 9:03 am.

Councilmembers Davis, McCoy, Middleton & Baker are present.

Councilmember Clair is absent.

2. PUBLIC COMMENT ON CLOSED SESSION ITEM:

Public comment on closed session was received by: Jan Osborn

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:

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a. Pursuant to Government Code Section 54957(b) the City’s Personnel Board will hold a Closed Session regarding the Discipline/Dismissal/Release of a Public Employee (Position affected: Police Officer)
Motion to Proceed with a 4-Person Personnel Board
MOTIONED: Councilmember Baker
SECOND: Councilmember Davis
AYES: Councilmembers Davis, McCoy, Middleton & Baker
NO’s: -0-
ABSENT: Councilmember Clair
The motion passes

4. RETURN TO OPEN SESSION:

Announcement of any action taken by the City Council in Closed Session required by the Ralph M.

Brown Act. (Government Code § 54950 et. seq.)
Return to open session at 5:13 pm.

Meeting adjourned Wednesday, August 7, 2025, at 5:16 pm. This meeting will reconvene Thursday, August 28, 2025, at 8:30 am.

5. ADJOURNMENT:

Meeting adjourned Thursday, August 28, 2025, at 4:14pm with no reportable action. ____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on September 16, 2025
___________________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
September 16, 2025

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YREKA CITY COUNCIL SPECIAL MEETING MINUTES
Tuesday, September 9, 2025, at 8:30 AM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA 96097 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. 8:30 AM CALL TO ORDER CLOSED SESSION:

The meeting was called to order at 8:32 am

2. ROLL CALL:

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

Councilmember Clair is absent.

3. PUBLIC COMMENT ON CLOSED SESSION ITEM:

No public comment received.

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4. 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. Pursuant to Government Code Section 54957(b) the City’s Personnel Board will hold a Closed Session regarding the Discipline/Dismissal/Release of a Public Employee (Position affected: Police Officer)

5. RETURN TO OPEN SESSION:

Announcement of any action taken by the City Council in Closed Session required by the Ralph M.

Brown Act. (Government Code § 54950 et. seq.)
Return to open session at 5:56 pm
There was no reportable action in closed session

6. ADJOURNMENT:

Meeting adjourned at 5:56 pm
____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on September 16, 2025
___________________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
September 16, 2025

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: Planning Department
Prepared by: Alia Roca Lezra, Planning Manager
Agenda title: Discussion/Possible Action Regarding Request to Waive the Park Reservation Fee for the Special Event known as “Yreka Elks Invitational,”to be held on Saturday, October 18 2025 in Greenhorn Park
Meeting date: September 16, 2025
Discussion: The Yreka Elks Lodge has submitted a request for a fee waiver for the Park Reservation Fee for the 2025 Yreka Elks Invitational to be held on Saturday, October 18, in Greenhorn Park.

Summary: The Elks Invitational is a historically successful annual cross-country meet and is one of the few offered in Siskiyou County. Last year, 22 schools attended, including teams from Jackson, Shasta, Modoc, Klamath, and Trinity counties. The event hosts ~120 elementary, middle, and high school student athletes. There are three races that utilize the lower Greenhorn trails and designated park areas, shown in Attachment A.

Fiscal Impact: Waiver of the $100 park reservation fee.

Recommended Action: No recommendation.

Possible Action:

1. Motion to Direct the City Manager to Waive the Park Reservation Fee for the Special Event Known as the “2025 Yreka Elks Invitational.”
Attachments:

1. Exhibit A – Special Event Application & Maps

2. Exhibit B – Park Reservation Application
Yreka City Council Agenda
September 16, 2025

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Revised June 2024
SPECIAL EVENT CHECKLIST Page 1 of 7
City of Yreka
Planning Department
701 4th Street
Yreka. CA 96097
(530) 841-2386

UNIVERSAL PLANNING APPLICATION
Special Event Applications are filed with the Planning Department. Only applications with all required submittal items for each corresponding checklist will be accepted. Applicants should contact the Planning Department regarding any questions with the checklist requirements prior to submitting an application. Email any questions to the Planning Department at [email protected], or call (530) 841-2386. You may also visit our website are https://ci.yreka.ca.us/164/Planning for additional information and forms. Please review the Planning Review Times and Process document linked here.

Special Event Information
Event Name:

Date(s) of Event:

SPECIAL EVENT CHECKLIST

APPLICATION SUBMITTAL REQUIREMENTS
REQUIRED FORMS:

Universal Application Form
Indemnification Form
Disclosure Form
Copyrights Release Form
Electronic Signature Disclosure Form
Special Event Checklist
REQUIRED PROJECT INFORMATION:

Indicate below each of the required documents or plan set components that have been prepared and submitted for this application. See instructions on the following page for those requirements.

PROJECT DOCUMENTS:

Detailed Special Event Site Plan
Engineered Street Closure and Traffic Control Plan, if closing city street(s) Alcohol Beverage Control Permit, if serving or selling alcohol Caltrans Encroachment Permit (copy), if impacting Highway 3 Insurance ($1,000,000 General Liability)
Encroachment Permit, if impacting city streets/sidewalks REQUIRED FEES:

Use the City’s Online Fee Schedule to determine your project’s required Application Fee(s) for an Encroachment Permit.

INSTRUCTIONS FOR APPLICATION REQUIREMENTS
PROJECT DOCUMENTS - All documents must reflect the document requirements. Use the document requirements to determine if you should include that document PROJECT PLAN SET COMPONENTS - All plans/sheets must reflect the plan sheet requirements.

EXHIBIT A
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Revised June 2024
SPECIAL EVENT CHECKLIST Page 2 of 7

SITE INFORMATION AND PLAN ELEMENTS
Event Space Address or Location:

Zoning of Surrounding Area:

Using a separate sheet of a minimum of 11” x 17”, submit a detailed premises diagram showing the boundaries of the event that includes the following:

Portable Structures
Prefabricated Structures
Existing Structures
Staging Area for Parades and Performers
Reviewing Stand(s)
Elevated Platforms and Stages
Temporary Pedestrian Bridges
Tents or Canopies
On-Site Grading
Portable Restrooms
All On-Site Signs and Banners
All ADA and Non-ADA Travel Routes
Assembly or Production Areas
Electrical Sources and Connections
Fuel Storage
Cooking and Open Fires
Water Supply
Run-Off Containment Features
Waste, Recycling, & Composting Containers
Accessible Parking
Access Points of Event
Access Points for Emergency Fire and
Ambulance Equipment
Emergency Medical Service Area(s)
Any Vehicles Located in an Enclosed Area
Pyrotechnics
Animals and Animal Rides
Other Similar Information that will Describe
the Components of the Event
**Activites that are strictly prohibited can
be found on the City’s website**
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SPECIAL EVENT FORM
Event Name:

Event Description
Provide a description of the proposed event including a description of planned activities and vendors.

Setup (Date/Time) Event Start (Date/Time) Event End (Date/Time) Clean-up End (Date/Time) Is this a reoccurring event that will keep the same schedule and setup? (Concert Series, Farmer’s Market, Art Walk, etc.)
YES NO
If “yes”, please list all dates that the above schedule will follow:

Is the event open to the general public? YES NO
What is your anticipated attendance or historic attendance numbers? Will your event host vendors selling non-food products? YES NO If “yes”, please complete Non-food Product Vendor Section Will your event host food vendors or serve food to attendees? YES NO If “yes”, please complete Food Product and Service Vendor Section Will your event sell or serve alcohol? YES NO
If “yes”, an Alcohol Beverage Control (ABC) will be required.

Will you need City Services? (Public Works, Police, or Fire) YES NO If “yes”, please complete City Services Section
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Event Name:

Describe the security plan for the event. Provide the number of person(s) that will monitor or facilitate the special event and to provide spectator or participant control and direction for events using city streets, sidewalks, or facilities.

Describe your medical plan, including first aid stations, emergency services, and emergency communication plan.

Describe how you event will accommodate or limit animals at the event.

Describe the provisions for recycling, composting, and waste management. Please include any and all waste container type(s) that will be brought to the event.

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Event Name:

Describe the number and type of sanitation and bathroom facilities at the event.

Describe all recording, sound amplifying, or other attention-getting devices to be used in connection with the event.

Describe any and all pyrotechnics to be used in connection with the event.

Provide all locations, timing for posting, and descriptions of all off-site signs, banners, or attention getting devices.

Please also provide a map of the locations of all off-site signs.

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SPECIAL EVENT CHECKLIST Page 6 of 7
Event Name:

Non-Food Product and Service Vendor(s)
What is the estimated number of vendors for the event?
Vendor Setup (Date/Time) Vendor Tear-Down (Date/Time)
**All Vendors are required to obtain a City of Yreka Annual Business License or Daily Business License no later than two weeks ahead of the event. Vendors without proper licensing will be expelled and cited.** Food Product and Service Vendor(s)
Present a list of all Siskiyou County Health Department approved food vendors with this application.

Are any food vendors anticipated to be mobile through the event (Food Truck, Food Cart, etc.)? YES NO
If “yes”, please list the type of mobile unit and business name. **All food vendors must receive proper permitting and inspections form Siskiyou County Environmental Health prior to and during the event. Failure to coordinate with Siskiyou County Environmental Health will result in the expulsion of the food vendor and citations.

City Services
Describe the type of assistance from the Fire Department prior to, during, or post event.

Describe the type of assistance from the Police Department prior to, during, or post event.

Describe the type of assistance from the Public Works Department prior to, during, or post event.
*Stating the need for City Services does not guarantee City Staff availability. The City of Yreka holds the right to deny City Service requests if Staff cannot meet the request.

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Additional Event Information:

Revised June 2024
SPECIAL EVENT CHECKLIST Page 7 of 7
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CITY OF YREKA ▪ 701 FOURTH ST ▪ YREKA ▪ CA ▪ 96097
APPLICATION TO RESERVE "PICNIC AREA"
Name Phone
Mailing Address
The undersigned is requesting permission to reserve the picnic area of:

Miner Street Park Upper Greenhorn Reservoir
Ringe Memorial Park Lower Greenhorn Reservoir
Discovery Park
Estimated number of people attending
Applicant shall provide their own trash containers and remove all trash at the conclusion of the reservation.

On , **From **To .
(Day) (Date) (Time) (Time)
**Please include any additional time needed for set-up and clean-up.

In conjunction with the reservation of the picnic area, please reserve:

Volleyball & Horseshoe Set Gazebo at Upper Greenhorn
I understand that the sports equipment may be picked up at City Hall by 4:00pm on the Thursday prior to my reservation and I agree to return said sports equipment to City Hall prior to 4:00pm on the Monday following my reservation.

I understand that this reservation is for the PICNIC AREA ONLY; no vehicles are allowed on the lawn areas; it is unlawful to build any fire outside of the barbecue pits; and I agree to abide by all posted rules and regulations. I further understand that approval will be contingent upon full compliance with Chapter

9.50 of the Yreka Municipal Code entitled "Park Regulations" and Resolutions No. 1324, 1797, and 2169.

Inflatable bouncy structures are not permitted.

Special requests:

Permission to use sound-amplifying devices. Connection to power source must be coordinated with the Maintenance Manager prior to event. (Electricity is not available at Upper Greenhorn).

Signature of Applicant Date
If you have any questions or need further information regarding your reservation, please contact City Hall at (530) 841-2386. For maintenance issues, please contact the Department of Public Works at (530) 841-2370.

Park Reservation Fee 4 Hours or Less - $50.00
Park Reservation Fee Per Day- $100.00 Paid:Date Cash Check (PARK RESERVATION FEES ARE NON-REFUNDABLE BUT ARE TRANSFERRABLE TO ANOTHER PARK AND/OR DATE) Card
Signature of City Staff
Please keep a copy of this receipt as evidence of your reservation. Reservation signs will be posted, however, if you encounter any difficulties after-hours or on the weekends, you may contact the Yreka Police Department at (530) 841-2300.

Greenhorn Gate Hours
March thru October
7:30am – 9:00pm
November thru February
7:30am – 7:00pm
Email: [email protected] Event:

Yreka High School - Isaac Fernandez 530-598-4719
Yreka Elks Invitational
x
200
Saturday October 18 7 a.m. 3 p.m.
8/5/25

EXHIBIT B
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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: Matthew Bray, Director of Public Works
Prepared by: Cynthia Lynch, Municipal Projects Manager
Agenda title: Discussion/Possible Action: Adopt Resolution 2025-31 Authorizing the City Manager to Award a Construction Contract to RTA Construction, Inc. for the Water Supply and Storage Improvements Project in the Amount of $6,744,000.00 for the Base Bid, and to Execute Related Documents Meeting date: September 16, 2025
Recommendation and Requested Action:

That Council adopt Resolution 2025-31 authorizing the City Manager to award a construction contract to RTA Construction, Inc. for the Water Supply and Storage Improvements Project in the amount of $6,744,000.00 for the base bid, and to execute related documents.

Discussion:

On May 13, 2025, bids were opened for the Water Supply and Storage Improvements Project. The results of the bid opening were as follows:

Name Location Total Base Bid
SnL Group, Inc. Redding, CA $7,399,997.00
Allen Gill Construction Palo Cedro, CA $8,862,000.00
RTA Construction, Inc. Redding, CA $6,744,000.00
Stewart Engineering, Inc. Redding, CA $9,690,000.00
Site Works Solutions Redding, CA $8,456,748.58
Timberworks Mt. Shasta, CA $8,059,960.00
Myers & Sons Construction, LLC Sacramento, CA $10,777,777.00 Preliminary Cost Estimate $6,150,000.00
The purpose of this project is to build resiliency and allow the City of Yreka to better endure short term outages in the event of a failure in the Fall Creek water transmission main, which is currently the City’s main water source. The project involves developing a new groundwater source by drilling and equipping a production well located at the Yreka Police Department on Davis Road; constructing a new 1.0 million gallon (MG) water tank near the current Lower Humbug tank and demolishing existing tank and appurtenances; and constructing a new 0.2 MG water tank at a different site near the current Shasta Belle tanks.

City staff and PACE Engineering have evaluated the bidder’s license status, bid bond, and insurance company information and have confirmed that the bidder is not debarred from working Yreka City Council Agenda
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on projects in California. Staff finds the bid is responsive and the bidder is responsible. The City Attorney has seen the apparent low bid submittal and has expressed concurrence with City staff and PACE. It is recommended that the City Council approve the attached Resolution to authorize the City Manager to award a construction contract and execute various agreements for the construction of this project.

Fiscal Impact:

The project is expected to be funded by a Drinking Water State Revolving Fund (DWSRF) construction grant in the amount of $9,285,559.00 with no match required. In addition to the construction award cost, the grant will fund construction contingency for possible change orders and construction management costs, as well as soft costs such as property and easement acquisition, additional design costs incurred during project development, and project administration. If there are any excess costs above the grant amount they will be funded by water reserves.

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RESOLUTION NO. 2025-31

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA AUTHORIZING

THE CITY MANAGER TO AWARD A CONSTRUCTION CONTRACT TO RTA CONSTRUCTION, INC. FOR THE WATER SUPPLY AND STORAGE
IMPROVEMENTS PROJECT IN THE AMOUNT OF $6,744,000.00 FOR THE BASE

BID, AND TO EXECUTE RELATED DOCUMENTS
WHEREAS, the City is a municipal corporation with the legal authority to enter into contracts and agreements in the State of California; and WHEREAS, the project was advertised for competitive bids on March 28 and April 3, 2025, in accordance with the California Public Contract Code; and WHEREAS, bids were opened on May 13, 2025, and a satisfactory bid analysis and evaluation of the bidder who submitted a proposal has been completed. The bid analysis identified no irregularities in items that could cause disadvantage to another bidder within the meaning of the Public Contract Code; and
WHEREAS, the Public Contract Code requires the award of construction contracts to the lowest responsive and responsible bidder.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yreka as follows:

Section 1. The City Council hereby finds and determines that the foregoing recitals are true and correct.

Section 2. The City Council hereby approves the Specifications for the Water Supply and Storage Improvements Project.

Section 3. The City Manager, or designee, and all other proper officers and officials of the City are authorized to award the work known as the Water Supply and Storage Improvements Project to RTA Construction, Inc. of Redding, CA, who is the lowest responsive and responsible bidder for the Base Bid items in the amount of Six Million, Seven Hundred Forty-Four Thousand Dollars and Zero Cents ($6,744,000.00), and to execute such agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.

Section 4. The City Manager, the Director of Public Works and all other proper officers and officials of the City are authorized to execute change orders and amendments which may become necessary, up to a total of 10% of the initial construction contracts, without additional Council approval.

Section 5. The Public Works Department is authorized to provide construction administration support, arrange ancillary construction services, and to expend funds on similar related items.

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Section 6. It is further resolved, if any section, subsection, part, clause, sentence or phrase of this Resolution or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, the validity of the remaining portions of this Resolution, the application thereof, shall not be effected thereby but shall remain in full force and effect, it being the intention of the City Council to adopt each and every section, subsection, part, clause, sentence phrase regardless of whether any other section, subsection, part, clause, sentence or phrase or the application thereof is held to be invalid or unconstitutional.

Section 7. This Resolution shall take effect immediately upon its passage.

Passed and adopted this 16th day of September, 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
____________________________
Colleen Baker
Mayor of the City of Yreka
Attest:
_____________________________
Cyndy Prohaska, City Clerk
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CITY COUNCIL AGENDA MEMORANDUM
TO: Yreka City Council
FROM: John Elsnab, Interim City Manager
AGENDA TITLE: Motion To Adopt Resolution 2025-32 Concerning Purchase of Assessor Parcel Numbers 061-163-010, 061-272-030, and 061-272- 070 For $850,000, and Authorizing Acceptance of Real Property From Pacific Realty Associates, L.P.

MEETING DATE: September 16, 2025
Discussion:

The City Council has identified the need for the current Fire Hall to be replaced due to age and obsolescence. The sales tax measure passed by the voters in November 2024 included improvements to Fire Department facilities as one of the needs for such additional revenue.

The buildings at the properties identified as Assessor Parcel Numbers 061-163-010, 061-272-030, and 061-272-070, located at 915 S Main Street and 918 S Main Street are vacant. The properties have been offered for sale on the open market for several years. After negotiations with the owner, Pacific Realty Associates, L.P., the parties have agreed to a purchase price of $850,000.

Fiscal Impact:

The purchase of the properties will be addressed through revenue from the sales tax measure passed in November 2024 to fund municipal services, including improvements to the Fire Department. Sufficient funds exist to cover the purchase of the property.

Recommendation andRequested Action:

Motion to Adopt Resolution 2025-32 Approving the “Purchase and Sale Agreement and Joint Escrow Instructions” Concerning Purchase of Assessor Parcel Numbers 061-163-010, 061-272- 030, and 061-272-070 For $850,000, and Authorizing Acceptance of Real Property From Pacific Realty Associates, L.P.

Attachments:
- [DRAFT] Resolution 2025-32 Approving the “Purchase and Sale Agreement and Joint Escrow Instructions” Concerning Purchase of Assessor Parcel Numbers 061-163-010, 061-272-030, and 061-272-070 For $850,000, and Authorizing Acceptance of Real Property From Pacific Realty Associates, L.P.

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RESOLUTION NO. 2025 - 32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YREKA APPROVING THE PURCHASE AND SALE

AGREEMENT AND JOINT ESCROW INSTRUCTIONS

CONCERNING THE PURCHASE OF ASSESSOR PARCEL
NUMBERS 061-163-010, 061-272-030, AND 061-272-070
FOR $850,000, AND AUTHORIZING ACCEPTANCE OF REAL
PROPERTY FROM PACIFIC REALTY ASSOCIATES, L.P.
------------------------------------------------------------------------------------ THE CITY COUNCIL OF THE CITY OF YREKA DOES HEREBY RESOLVE:

WHEREAS, the City of Yreka desires to acquire real property known as Assessor’s parcel number 061-163-010 (915 S Main Street, City of Yreka, County of Siskiyou, State of California), Assessor’s parcel number 061-272- 030, and Assessor’s parcel number 061-272-070 (918 S Main Street, City of Yreka, County of Siskiyou, State of California) located Yreka, California (“Property”) from PACIFIC REALTY ASSOCIATES, L.P., a Delaware limited Partnership (“Seller”); and
WHEREAS, City desires to acquire the property for use as replacement for the current fire hall for the Yreka Fire Department, or such other municipal use; and
WHEREAS, Seller and the City have negotiated terms and reached an agreement for the sale of Property to the City (the “Agreement”)(Exhibit A, “Purchase and Sale Agreement and Joint Escrow Instructions“); and WHEREAS, the City has performed a Phase 1 environmental screening of the Property and additional due diligence to identify known environmental conditions at the Property; and
WHEREAS, the City shall conduct further due diligence and title review through the escrow process in the Agreement; and
WHEREAS, Government Code Section 27281 provides that instruments conveying an interest in real property to the City may not be recorded without a Certificate of Acceptance from the City Council, to that end, this resolution consents to the conveyance of the Property to the City of Yreka and issue a Certificate of Acceptance evidencing the City’s consent; and WHEREAS, the City Council’s authorization under this Resolution is granted subject to the Seller delivering to the City an executed grant deed conveying the Property to the City within the time frame established in the Agreement;
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NOW, THEREFORE, BE IT RESOLVED, the City Manager is authorized and directed to:

1. Authorize the City Manager to enter into the Purchase and Sale Agreement and Joint Escrow Instructions (Exhibit A) to purchase the Property for a purchase price not to exceed $850,000, and such additional costs associated with escrow and other transaction costs, such Agreement to be subject to final review by the City Attorney;

2. Execute a Certificate of Acceptance accepting the Property on behalf of the City of Yreka as set forth in California Government Code Section 27281,

3. Record the grant deed conveying the Property to the City, and

4. To execute such other instruments and to take such other actions necessary to carry out the intent of this Resolution.

RESOLVED this __ day of __________, 2025.
_________________________
Collenn Baker, Mayor
ATTEST:
_____________________________
Cynthia Prohaska, City Clerk
I, Cynthia Prohaska, City Clerk of the City of Yreka, hereby certify that the foregoing resolution was duly passed at a regular meeting of the City Council of the City of Yreka held on the ____ day of ____________, 2025 by the following vote on roll call:

Ayes:

Noes:

Abstain:

Absent:
_____________________________
Cynthia Prohaska, City Clerk
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PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (the “Agreement”) is made and entered into as of the last date signed by a party below (the “Effective Date”), by and between PACIFIC REALTY ASSOCIATES, L.P., a Delaware limited partnership (“Seller”), and the CITY OF YREKA, a California municipal corporation (“Buyer”).

Seller and Buyer (collectively, the “Parties”, individually, a “party”) hereby agree as follows:

RECITALS
A. Seller owns certain real property located at Assessor’s parcel number 061-163- 010 (915 S Main Street, City of Yreka, County of Siskiyou, State of California), Assessor’s parcel number 061-272-030, and Assessor’s parcel number 061-272-070, (918 S Main Street, City of Yreka, County of Siskiyou, State of California) which is more fully described in Exhibit A attached hereto and incorporated herein, as described as the “Land” in Article I hereof; and B. Seller offers to sell, and Buyer may purchase, the Property on the terms and conditions set forth herein; and
NOW, THEREFORE, incorporating the foregoing recitals and in consideration of the promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

PURCHASE AND SALE

1.1 Purchase and Sale. Subject to the satisfaction of all terms and conditions of this Agreement and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Seller hereby agrees to sell, assign, transfer, and convey to Buyer and Buyer hereby agrees to purchase from Seller, for the purchase price set forth in Article II of this Agreement, all of Seller’s right, title and interest in and to the Property.

1.2 Description of Property. The property to be sold and purchased under this Agreement (“Property”) consists of the following:

1.2.1 Land. The real property described in Recital A above (the “Land”), which is subject to that certain Easements with Covenants and Restrictions Affecting Land (ECR) recorded May 23, 1980 in the Official Records of Siskiyou County, California at Volume 889,

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1.2.2 Appurtenances. All appurtenances to the Property owned by Seller, including, without limitation, all of Seller’s rights, title, and interest in and to all easements and rights-of-way; all development rights; all mineral, oil, gas, and other hydrocarbon substances on Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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and under the Land; water; water rights; water stock relating to the Land; and air rights, if any, relating to the Property (collectively, the “Appurtenances”).

1.2.3 Improvements. All buildings, structures, fences, parking areas, or improvements located upon the land or upon the improvements, including, without limitation, fixtures, systems, and equipment attached to the Land or improvements and used in connection with the operation or occupancy of the Land and improvements (such as heating and airconditioning systems, refrigeration, ventilation, garbage disposal, or utility conduits) (collectively, the “Improvements”, which together with the Land and Appurtenances are called the “Property”);

1.2.4 Personal Property. Buyer acknowledges that no personal property (“Personal Property”) is being conveyed to Buyer pursuant to this Agreement.

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ARTICLE II

PURCHASE PRICE

2.1. Purchase Price. The full purchase price for the Property is Eight Hundred Fifty Thousand dollars ($850,000.00) (the “Purchase Price”), and shall be payable in accordance with this Article II.

2.2. Earnest Money Deposit. Within five (5) business days after the Effective Date, Buyer shall deposit in escrow with Escrow Holder (as defined below), in cash, or by cashier’s check payable to the Escrow Holder, or by a confirmed wire transfer to Escrow Holder, the sum of One Hundred Thousand Dollars ($100,000.00) (“Deposit”). The Deposit shall be applied against the Purchase Price at Closing. The Deposit shall be deposited by the Escrow Holder in an interest-bearing account reasonably acceptable to Seller and Buyer. All interest earned on the Deposit shall be and become a part of the Deposit and shall be handled in the same manner as the Deposit as provided for herein. Prior to expiration of the Due Diligence Period (as defined below), Buyer may terminate this Agreement for any reason or for no reason by delivering written notice of termination to Seller. Upon such termination, the Deposit, less One Dollar ($1.00) for independent consideration, shall be returned to Buyer. After expiration of the Due Diligence Period: (A) the Deposit shall become nonrefundable, (B) Seller shall be entitled to have the Deposit released to it and Escrow Holder is hereby directed to remit the Deposit to Seller without further instruction from Buyer or Seller, and (C) at Escrow Holder’s request, Buyer shall promptly sign and deliver to Escrow Holder such written instructions as Escrow Holder may request confirming that the Deposit may be released to Seller.

2.3. Balance of Purchase Price: Buyer shall pay, or cause to be paid, the balance of the Purchase Price to Seller through the Escrow (as defined below) by depositing cash with Escrow Holder or by wire transfer to Escrow Holder, no later than one (1) business day before the Closing Date (as defined below).

ARTICLE III
PROPERTY INFORMATION; TITLE REVIEW;
INSPECTIONS; AND DUE DILIGENCE

3.1. Due Diligence. Buyer’s obligation to purchase the Property is expressly conditioned on its approval, in its sole discretion, of the condition of the Property and all other matters concerning the Property, including, without limitation, economic, financial, and accounting matters relating to or affecting the Property or its value, and the physical and environmental condition of the Property. Buyer will have until the Contingency Date (as defined below) to conduct such investigations as Buyer may choose to determine, in its sole discretion, whether this contingency is met. On or before the Contingency Date, Buyer will deliver written Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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notice to Seller accepting the Property, or terminating this Agreement in accordance with Section

3.2 of this Agreement.

3.2. Due Diligence Period. The “Due Diligence Period” shall commence on the Effective Date and shall end at 5:00 p.m. on the date which is sixty (60 days after the Effective Date (the “Contingency Date”), unless extended in accordance with this Agreement or by mutual written agreement of the Parties.

3.3. Inspections.

3.2.1 Inspections in General. Commencing on the Effective Date and continuing through and including the expiration of the Due Diligence Period, Buyer, its agents, and employees shall have a limited license (the “License”) for unlimited access to the Property for the purpose of making inspections at Buyer’s sole risk, cost, and expense.

All those entering the Property at the direction of Buyer shall have adequate insurance to cover their activities. Buyer agrees to restore the Property, as required, to substantially the same condition that existed prior to Buyer’s entry and inspection. The License shall be deemed revoked upon termination of this Agreement. The provisions of this paragraph shall survive the Close of Escrow (as defined below) or the earlier termination of this Agreement.

3.2.2 Environmental Inspections. The parties acknowledge that a Phase I environmental inspection of the Real Property has been performed and a Phase II environmental inspection must be performed. Seller hereby consents to Buyer performing a Phase II environmental inspection, as required; provided, however, the scope of the Phase II environmental inspection shall be subject to Seller written approval, which will not be unreasonably withheld, conditioned or delayed. At Seller’s request, Buyer shall deliver to Seller (at no cost to Seller) copies of any Phase II or other environmental reports.

3.1 Termination During Due Diligence Period. If Buyer determines, in its sole discretion, before the expiration of the Due Diligence Period or any extension thereof, that the Property is unacceptable for Buyer’s purposes, Buyer shall have the right to terminate this Agreement by giving to Seller notice of termination (a “Termination Notice”) before the expiration of the Due Diligence Period or extension thereof, in which event the Deposit shall be immediately refunded to Buyer as provided in Section 2.2, Buyer shall immediately return all Property Information (as defined below) to Seller, and, except for those provisions of this Agreement which expressly survive the termination of this Agreement, the parties hereto shall have no further obligations hereunder. If Buyer fails to deliver a Termination Notice to Seller and Escrow Holder on or before the expiration of the Due Diligence Period, then Buyer shall be deemed to be satisfied with all aspects of all the Property, including, without limitation, the condition and suitability of all of the Property for Buyer’s intended use, and Buyer shall be obligated to acquire the Property in accordance with the provisions of this Agreement.

Buyer’s delivery of a Termination Notice to Seller with respect to the Property shall constitute Buyer’s election to terminate this Agreement with respect to the Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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Property as provided in Section 3.1 of this Agreement. In the event that Buyer terminates this Agreement pursuant to this section, Buyer shall pay all escrow and title fees or similar charges of Escrow Holder and Title Company incurred in connection with the transactions described herein, which obligation shall survive the termination of this Agreement, and Buyer hereby authorizes Escrow Holder to deduct such amounts from the Deposit, provided the remainder of the Deposit shall be refunded to Buyer as provided above.

3.2 Indemnity for Inspection Damages. Buyer agrees to indemnify, defend, and hold harmless Seller, its officers, employees, and agents from and against any and all third party claims for bodily injury or property damage to persons or property which result from the on-site inspection activities of Buyer, its officers, employees, agents, representatives, contractors, subcontractors and/or consultants, but shall have no obligation to do so to the extent that any claims result from preexisting conditions that may exist on the Property, or claims that result from the Seller’s gross negligence or willful misconduct.

ARTICLE IV
ESCROW; TITLE; REMEDIES

4.1. Escrow. Within five (5) business days after the Effective Date, the Parties shall open an escrow (the “Escrow”) at Mt. Shasta Title & Escrow, Inc., 1252 South Main Street, Yreka, CA 9609, 530-842-4333 (“Escrow Holder”), and shall deliver a fully executed copy of this Agreement to Escrow Holder, to consummate the purchase in accordance with the terms and provisions hereof. The provisions of this Agreement shall constitute joint primary escrow instructions to Escrow Holder. In addition, Buyer and Seller shall execute, deliver, and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder not inconsistent with the provisions hereof, in order to consummate the transaction contemplated by this Agreement. Any such additional escrow instructions shall not amend, or supersede any portion of this Agreement. If there is any inconsistency between such additional escrow instructions and this Agreement, this Agreement shall control.

4.2. Opening of Escrow; Close of Escrow. For purposes of this Agreement, Escrow shall be deemed open (the “Opening of Escrow” or “Opening Date”) on the date Escrow holder receives (A) executed counterparts of this Agreement from both Seller and Buyer, and (B) the Deposit from Buyer. Upon request of either or both of the Parties, Escrow Holder shall deliver written confirmation of the date of the Opening of Escrow to the parties in the manner set forth in Section 14.2 of this Agreement.

4.3. Close of Escrow.

4.3.1 Closing. The “Closing” means the exchange of money and documents as described in this Article 4, and will be deemed to have occurred when Seller’s Deed to Buyer has been recorded, the Escrow Holder holds and can record and deliver the remaining documents described in this Article 4, the Title Company is irrevocably and unconditionally committed to Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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issue the Title Policy, and Buyer has delivered the Purchase Price less the Deposit in cash or by wire transfer to Escrow Holder.

4.3.2 Closing Date. For purposes of this Agreement, “Close of Escrow” shall mean the date on which a grant deed conveying the Property to Buyer is recorded in the official records of Siskiyou County, California (the “Official Records”). The Escrow shall close within fifteen (15) days after satisfaction or waiver of the Due Diligence Period or at such other date as the parties may mutually agree upon in writing (the “Closing Date”).

4.4. Escrow Cancellation: If the Close of Escrow fails to occur due to Seller’s default, Seller shall pay all Escrow cancellation charges. If the close of Escrow fails to occur due to Buyer’s default, Buyer shall pay all Escrow cancellation charges. If the Close of Escrow fails to occur for any reason other than the foregoing, Buyer and Seller shall each pay one-half of any Escrow cancellation charges. “Escrow cancellation charges” means all fees, charges, and expenses incurred and charged by Escrow Holder as well as all expenses related to the issuance of the title policy and other title matters.

4.5. Approval of Title. Within five (5) business days after the Effective Date, Seller shall deliver, or shall cause to be delivered, to Buyer a current preliminary title report or title commitment covering the Property (the “Title Report”), issued by Mt. Shasta Title & Escrow (the “Title Company”), together with hyperlinks to of all documents constituting exceptions referenced in the Title Report (collectively, the “Title Documents”). Buyer acknowledges receipt of a copy of the Title Report (including hyperlinks to all documents constituting exceptions referenced in the Title Report) issued by First American Title Insurance Company dated April 7, 2025 bearing Commitment No. NCS-1110497-OR1. Seller shall also deliver to Buyer a copy of any surveys of the Property. On or before the expiration of the Title Review Period (defined below), Seller shall notify Buyer in writing of any inconsistencies, inaccuracies, or omissions in the Title Report or Title Documents, if Seller knows or reasonably should know of the same, whether of record or not.

4.6. Title Review. Within thirty (30) days after the Opening of Escrow (the “Title Review Period”), Buyer may disapprove the Title Documents by notice to Escrow Holder and Seller (the “Notice of Defect”) specifying the matters shown in the Title Documents, which are disapproved by Buyer in its sole and absolute discretion (“Disapproved Exception”). Seller, within ten (10) days after receiving the Notice of Defect, shall deliver to Buyer a notice stating whether or not Seller will cure any of the Disapproved Exception(s) on or before Close of Escrow, but Seller shall not be obligated to so remove or cure any of the Disapproved Exception(s). Buyer shall have ten (10) days following Seller’s delivery of such notice or the expiration of Seller’s 10-day notice period, as applicable, to elect, by giving notice to Seller and to Escrow Holder, (i) to terminate this Agreement; or (ii) to waive its disapproval of the Disapproved Exception(s).

4.7. Title Insurance. At the Close of Escrow, the Title Company shall issue through Escrow an Owner’s Policy of Title Insurance (the “Title Policy”) with CLTA coverage, unless Buyer elects ALTA coverage and pays the additional costs of such coverage as provided in Section 8.1 below, in which event the Title Company shall issue the Title Policy with ALTA coverage, with liability in the amount of the Purchase Price, insuring fee title to the Property Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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vested in Buyer, subject only to the following exceptions: (i) the standard printed exceptions set forth in the Title Policy; (ii) general and special taxes and assessments not then delinquent or payable over time; (iii) the exceptions to title approved by Buyer pursuant to Sections 4.5 and 4.6 of this Agreement, including, without limitation, the ECR; and (iv) any exceptions to title created by or made through Buyer.

4.8. Items to be Delivered by Seller at the Closing. At least three (3) business days prior to the Closing Date, Seller shall deposit into Escrow by delivering or causing to be delivered to the Escrow Holder, as Seller’s sole cost and expense, each of the following items:
(a) one (1) original counterpart of the grant deed (the “Grant Deed”) to the Property in recordable form, duly executed and acknowledged by Seller in form as approved by the Title Company, conveying to Buyer Seller’s title to the Real Property; (b) one (1) original affidavit from Seller which satisfies the requirements of Section 1445 of the Internal Revenue Code, as amended (the “Section 1445 Affidavit”); (c) if applicable, one (1) completed original of a Withholding Exemption Certificate, Form 597-W (the “597-W Certificate”);
(d) evidence of the existence, organization, and authority of Seller and of the authority of the persons executing documents on behalf of Seller reasonably satisfactory to the underwriter for the Title Policy;
(e) one (1) executed counterpart of a closing statement prepared the Escrow Holder and approved by Seller and Buyer, which shall conform to the proration and other relevant provisions of this Agreement (the “Closing Statement”); (f) To the extent not previously delivered to Buyer, originals of any leases, any contracts relating to the Property, certificates of occupancy, governmental approvals, and any other documents, instruments, or agreements reasonably necessary to effectuate the transaction contemplated by this Agreement to the extent any such documents are in Seller’s possession; and

(g) Such other disclosures and reports as are required by applicable state and local law in connection with the conveyance of the Property; and (h) Such other instruments and documents as may be reasonably requested by Escrow Holder or the Title Company, or that are reasonably required, to close and consummate the purchase of the Property in accordance with the terms hereof.

4.9. Items to be Delivered by Buyer at the Closing. At least two (2) business days prior to the Closing Date, Buyer shall deposit into Escrow by delivering or causing to be delivered to Escrow Agent, at Buyer’s sole cost and expense:
(a) one (1) original Preliminary Change of Ownership Report in the form required by the Siskiyou County Recorder’s Office, duly executed by Buyer (the "PCOR"); Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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(b) one (1) original certificate of acceptance, duly executed by Buyer, in form approved by Buyer (the “Certificate of Acceptance”);
(c) the entire amount of the Purchase Price, minus the amount of the Deposit including any accrued interest and subject to prorations and other adjustments as provided herein, by wire transfer;
(d) an executed counterpart of the Closing Statement;
(e) Such other disclosures and reports as are required by applicable state and local law in connection with the conveyance of the Property; and (f) such other instruments and documents as may be reasonably requested by Escrow Holder.

4.10. Deliveries by Escrow Holder. At least ten (10) business days prior to the Close of Escrow, Escrow Holder shall deliver to Buyer and Seller a pro forma closing statement which sets forth, in a manner satisfactory to Buyer and Seller, the prorations and other credits and debits contemplated by this Agreement. Seller and Buyer shall agree upon the form of such closing statement at least five (5) business days prior to the Close of Escrow. At least one (1) business day prior to the Close of Escrow, Escrow Holder shall deliver to Buyer and Seller a notice to the effect that Buyer and Seller have delivered into Escrow all of the documents required to be delivered by each of them under this Article IV, and that, subject to the parties complying with their respective obligations, Escrow Holder is able to proceed to close Escrow in accordance with the terms of this Agreement.

4.11. Approvals and Conditions to Close.
(a) Approvals and Conditions for Benefit of Buyer. Buyer shall not be obligated to proceed to the Close of Escrow and the Closing shall not occur unless and until, in addition to all other conditions in this Agreement, the following conditions precedent and contingencies (“Buyer’s Closing Conditions”) have been satisfied on or before the Close of Escrow. Buyer’s Closing Conditions are solely for Buyer’s benefit and any or all of Buyer’s Closing Conditions may be waived in writing by Buyer in whole or in part without prior notice:
(1) Title. On the Closing Date, Seller convey to Buyer fee simple title to the Property by execution and delivery of the Grant Deed. (2) Closing Documents. Seller’s deposit into Escrow by delivery to the Escrow Holder the documents, instruments, and funds it is required to deliver through Escrow at Closing.
(3) Intentionally Deleted.
(4) Seller’s Performance. On the Closing Date, Seller shall be ready, willing and able to close the transaction contemplated by this Agreement as set forth herein.

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(5) Seller’s Representations and Warranties. All representations and warranties of Seller contained in this Agreement shall be materially true and correct as of the date made and as of the Closing Date
(6) Physical Condition. The physical condition of the Property must be substantially the same on the Closing Date as on the Effective Date, reasonable wear and tear excepted.
(7) Adverse Actions. There shall exist no actions, suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, or other proceedings, pending or threatened against (i) Seller that would materially and adversely affect Seller’s ability to perform its respective obligations under this Agreement, or (ii) the Property.

There shall exist no pending or threatened action, suit, or proceeding with respect to Seller or the Property before or by any court or administrative agency which seeks to restrain or prohibit, or to obtain damages or a discovery order with respect to, the Property, this Agreement, or the consummation of the transaction contemplated hereby.
(8) Hazardous Material. No Hazardous Materials will have been discovered on the Property after the Contingency Date that were not previously disclosed to Buyer or discovered by Buyer before the Contingency Date.
(9) Intentionally Deleted.
(10) Intentionally Deleted.

(11) Title Insurance. The Title Company shall have confirmed that it is prepared to issue the Buyer’s Title Policy to insure Buyer’s fee interest in the Property consistent with the provisions of this Agreement.
(b) Conditions for the Benefit of Seller. Escrow shall not close unless and until the following conditions precedent and contingencies have been satisfied at or before the Closing (“Seller’s Closing Conditions”). Seller’s Closing Conditions are solely for Seller’s benefit and any of Seller’s Closing Conditions may be waived in writing by Seller in whole or in part without prior notice:
(1) Closing Documents. All funds, documents, and instruments described above in Section 4.9 have been delivered to Escrow Holder. (2) No Default. On the Closing Date, Buyer shall not be in default in the performance of any covenant or agreement to be performed by Buyer under this Agreement.

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(3) Buyer’s Representations and Warranties. All of Buyer’s representations and warranties contained herein shall be true and correct in all material respects as of the date made and as of the Closing Date.
(4) Adverse Actions. There shall exist no actions, suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, or other proceedings, pending or threatened against Buyer that would materially and adversely affect Buyer’s ability to perform its respective obligations under this Agreement. There shall exist no pending or threatened action, suit, or proceeding with respect to Buyer before or by any court or administrative agency which seeks to restrain or prohibit, or to obtain damages or a discovery order with respect to, this Agreement or the consummation of the transaction contemplated hereby.

4.12. Consequences of Unsatisfied Conditions. If Buyer’s Closing Conditions or Seller’s Closing Conditions, as the case may be, are not satisfied or waived on or before the Close of Escrow, the party to whom such Closing Condition benefits may elect to terminate this Agreement upon written notice to the other party (the “defaulting party” for purposes of this section). If this Agreement is so terminated, the following shall occur: (i) each party shall execute such documents as Escrow Holder may reasonably require to evidence such termination; (ii) the Deposit, together with interest accrued thereon, deposited by Buyer with Escrow Holder pursuant to Section 2.2 above, shall be refunded to Buyer if Buyer is not the defaulting party, or paid to Seller if Buyer is the defaulting party; (iii) any documents deposited with Escrow Holder by either party shall be returned to the party depositing the same; (iv) Buyer shall return to Seller all documents delivered by Seller to Buyer pursuant to this Agreement; (v) Buyer shall deliver to Seller copies of all third-party reports related to the Property obtained by Buyer; and (vi) all title and escrow cancellation costs shall be borne by the defaulting party. Except as otherwise provided herein, upon completion of all of the foregoing, this Agreement shall be deemed terminated and neither party shall have any further rights against or obligations to the other hereunder.

4.13. Recordation and Transfer. Upon satisfaction of the conditions set forth in this Agreement and written confirmation thereof by Buyer and Seller, Escrow Holder shall take the following actions:
(a) Cause the Grant Deed (with the Certificate of Acceptance attached) to be recorded in the Official Records and file the PCOR simultaneously therewith. (b) Obtain and deliver the original Title Policy to Buyer and a copy to Seller. (c) Disburse all funds deposited with Escrow Holder by Buyer in payment of the Purchase Price and other prorations and expenses set forth in this Agreement in accordance with the terms of the closing statement approved in accordance with this Agreement. (d) Deliver to: (i) Buyer at least one copy of the executed Section 1445 Affidavit, and at least two conformed copies of the recorded Grant Deed; (ii) Seller at least one Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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copy of the Section 1445 Affidavit and at least one conformed copy of the recorded Grant Deed; and (iii) the parties entitled thereto any other closing documents as appropriate.

4.14. Remedies for Seller’s Default. If Seller defaults in its obligations under this Agreement to sell the Property to Buyer on the Closing Date through no fault of Buyer, then Buyer at its option may have the right to specific performance of this Agreement or the right to recover the Deposit and Buyer’s out-of-pocket costs incurred in connection with this transaction, not to exceed Fifty Thousand Dollars ($50,000.00). If, within one (1) year after the Closing Date , Buyer determines that Seller has breached any representation or warranty set forth in this Agreement in any material respect then Buyer will have the right to bring an action for damages to Buyer under Civil Code section 3306, not to exceed Fifty Thousand Dollars ($50,000.00). If this Agreement is terminated before the Closing Date for Seller’s default, then, in addition to any remedy Buyer has under this Agreement, Seller will reimburse Buyer for the costs incurred by Seller in conducting its Due Diligence, not to exceed Fifty Thousand Dollars ($50,000.00).

4.15. Liquidated Damages for Buyer’s Default. BUYER AND SELLER AGREE THAT THE ACTUAL DAMAGES, INCLUDING ANY ATTORNEYS’ FEES, LOST

PROFITS AND OPPORTUNITY COSTS, FOR FAILURE OF THE ESCROW TO CLOSE DUE TO BUYER’S DEFAULT HEREUNDER WOULD BE EXTREMELY

DIFFICULT TO MEASURE AND THAT THE DEPOSIT, TOGETHER WITH ANY

INTEREST THEREON, IS PRESUMED TO BE A REASONABLE PRESENT

ESTIMATE OF SUCH DAMAGES, WHICH SHALL BE THE FULL, AGREED AND

LIQUIDATED DAMAGES PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677 AND SHALL NOT CONSTITUTE A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE 3275 OR 3369.

FROM THE NATURE OF THIS TRANSACTION, IT IS IMPRACTICABLE AND

EXTREMELY DIFFICULT TO FIX THE ACTUAL DAMAGES THAT SELLER WOULD SUSTAIN IF BUYER BREACHES SUCH OBLIGATION. THE

IMPRACTICABILITY AND DIFFICULTY OF FIXING ACTUAL DAMAGES IS

CAUSED BY, WITHOUT LIMITATION, THE FACT THAT THE PROPERTY IS UNIQUE. SUCH LIQUIDATED DAMAGES SHALL BE SELLER’S SOLE AND

EXCLUSIVE REMEDY AGAINST BUYER (INCLUDING, WITHOUT LIMITATION, SELLER’S RIGHTS TO SEEK SPECIFIC PERFORMANCE OF THIS AGREEMENT AND TO RECEIVE DAMAGES) FOR BUYER’S FAILURE TO PURCHASE THE PROPERTY.

SELLER AND BUYER ACKNOWLEDGE THAT THEY HAVE READ AND

UNDERSTAND THE PROVISIONS OF THE FOREGOING LIQUIDATED DAMAGES

PROVISIONS SET FORTH IN THIS ARTICLE III AND BY THEIR INITIALS IMMEDIATELY BELOW AGREE TO BE BOUND BY THEIR TERMS.
________________ ______________
Buyer’s Initials Seller’s Initials
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ARTICLE V

ADDITIONAL RIGHTS AND OBLIGATIONS

5.1. Title. From and after the Opening of Escrow, through the Closing Date or earlier termination of this Agreement, there shall exist no new exception to title to the Property that is not: (i) terminated prior to or concurrently with the Close of Escrow or (ii) approved by Buyer in writing at least thirty (30) days prior to the Close of Escrow. Prior to or concurrently with the Close of Escrow, Seller, at its sole expense, shall discharge any deeds of trust or other monetary encumbrances (other than real property taxes and assessments not yet delinquent).

5.2. Documents, Records, and Disclosures. Within five (5) days after the Effective Date of this Agreement, Seller shall make available to Buyer by way of a virtual transaction room those documents listed on Schedule 1. All such materials are hereinafter sometimes collectively referred to as the "Property Records." Buyer shall review and approve or disapprove all such Property Records within the Due Diligence Period.

5.3. Books and Records. From and after the Opening of Escrow until the Closing Date or earlier termination of this Agreement, Buyer shall be entitled, at any reasonable time during normal business hours and with reasonable prior notice, to inspect and copy all books and records relating to the physical condition or operation of the Property in the possession of Seller at Seller’s office in Portland, Oregon.

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ARTICLE VI
AS IS
Except as expressly set forth in this Agreement, Buyer hereby acknowledges and agrees that the Seller is selling, and Buyer is buying, the Property in its existing condition “As-Is, where is, and with all faults” as of the date of the Close of Escrow. Except as expressly set forth herein and for the duration thereof, Seller is not making and has not made any warranty or representation with respect to all or any part of the Property. Buyer is relying solely on Seller’s warranties and representations made herein and Buyer’s independent investigations as to any matters concerning the Property, its suitability for Buyer’s intended uses, or any of the property conditions. Except as expressly provided herein, Seller does not guarantee the legal, physical, geological, environmental, or other conditions of the Property.

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ARTICLE VII

PRORATIONS

7.1. Prorations. All receipts and disbursements of the Property will be prorated as of 11:59 p.m. on the day immediately preceding the Closing Date and the Purchase Price will be adjusted on the following basis:

7.1.1 Taxes. Seller acknowledges that Buyer is exempt from the payment of real and personal property taxes, so that if Buyer purchases the Property, there will be no property taxes assessed against the Property from and after the Close of Escrow and for so long as Buyer owns the Property. That portion of property taxes which may have been paid by Seller attributable to the time after the Close of Escrow may be refundable. Seller shall be responsible to apply to the County Tax Assessor for any such refund, and Buyer will cooperate in Seller's efforts to apply for such refund. Buyer will be responsible for paying property taxes related to the Property attributable to periods from and after the Closing Date.

7.1.2 Utilities. Escrow Holder shall prorate through Escrow, on a 365-day basis, all water, gas, electric, sewer, and other utility services, if any, on the Property as of the Closing Date. If the Parties are unable to obtain final meter readings as of the Closing Date, such expenses shall be estimated as of the Closing Date on the basis of the prior operating history of the Property.

7.1.3 Bonds, Special Assessments. All bonds or special assessments against the Property due before the Close of Escrow shall be paid by Seller and all bonds or special assessments due after the Close of Escrow, which relate to events occurring prior to the Close of Escrow and are payable by the property owner, shall be prorated as of the Close of Escrow. If Buyer is exempt from payment of such bonds or special assessments, then Seller shall apply to the County Tax Assessor for any refund which may be owing to Seller.

7.1.4 Supplemental Tax Bills. Any supplementary tax bills received by Buyer following the Close of Escrow relating to a period prior to the Close of Escrow shall be forwarded to Seller and shall be the responsibility of Seller.

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ARTICLE VIII
COSTS

8.1. Costs. Upon the Close of Escrow, escrow, title charges, and other closing costs shall be allocated between Seller and Buyer as Follows:
(a) Escrow costs will be shared equally by Seller and Buyer. (b) Buyer and Seller shall each pay one-half of the premium for a California Land Title Association (“CLTA”) Standard Policy of Title Insurance. Buyer shall pay the additional cost for an American Land Title Association (“ALTA”) Owner’s Policy, if selected by Buyer, and any endorsements to the Title Policy requested by Buyer. Buyer shall pay all costs and expenses, if any, incurred in connection with its obtaining a survey of the Property. (c) Seller shall pay all costs associated with removing any debt encumbering the Property.
(d) Each party shall be responsible for payment of the fees and expenses of its legal counsel relating to this Agreement and the transaction contemplated hereby. (e) Seller shall pay City or County documentary or transfer taxes and recording fees, if any.
(f) Buyer shall pay any other closing costs or charges.

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ARTICLE IX
SELLER’S WARRANTIES
Seller hereby represents and warrants for the benefit of Buyer, that the following facts are true and correct as of the Effective Date and shall be true and correct as of the Close of Escrow.

Seller’s representations and warranties set forth in this Article IX shall survive Closing for one year, regardless of what investigations Buyer shall have made with respect thereto prior to Closing. If, prior to the Closing Date, Seller should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or warranty of Seller set forth herein incorrect or untrue, then Seller shall promptly give written notice thereof to Buyer.

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9.1. Organization. Seller is duly organized, validly existing and in good standing under the laws of the State of Delaware, and is qualified to do business in the State of California.

9.2. Authorization. This Agreement has been duly executed and delivered by Seller and is a valid and binding obligation of Seller, enforceable against Seller in accordance with its terms.

9.3. Agreements and Contracts. Other than this Agreement, as shown in the Title Report, or as disclosed in the Property Records, (A) Seller has not entered into any contract or agreement other than this Agreement which gives any person, firm or entity any right to acquire the Property, any rights or estates in or to the Property (or any portion thereof) or otherwise affects or pertains to the Property and (B) to the best of Seller's knowledge, no person, firm or entity has any right to acquire the Property or any rights or estates in and to the Property (or any portion thereof). There are no leases or tenancies affecting any part of the Property.

9.4. Condemnation. To the best of Seller's knowledge, there is no condemnation or eminent domain proceeding pending or threatened against the Property.

9.5. Litigation. To the best of Seller's knowledge, there is no litigation pending or threatened which affects the Property or which would or might affect the transaction contemplated hereby or the ability of Seller to satisfy all of its obligations hereunder.

9.6. Non Compliance. Seller has not received any written notification from any insurance company, Board of Insurance Underwriters or any governmental authority specifying any non-compliance of the Property (or any portion thereof) with applicable codes, statutes, ordinances or regulations which remains uncured.

9.7. Liens and Assessments. To the best of Seller's knowledge, there is no lien or special assessment, other than ad valorem taxes, pending or threatened against the Property by any governmental authority.

9.8. Foreign Person. Seller is not a foreign person as defined in Internal Revenue Code Section 1445(f)(3).

9.9. Hazardous Materials. To Seller's knowledge, except as otherwise set forth in the Property Records, Seller has not received written notice of any uncured violation of any federal, state or local law, ordinance or regulation relating to Hazardous Materials (as defined below) in, at, or on the Property.

9.10. Property Records. Seller has not redacted any known defects from the Property Records.

9.11. Seller's Knowledge. Buyer and Seller each specifically acknowledge and agree that all references contained in this Agreement, in any of the exhibits attached hereto and in any document, certificate or statement to be delivered by Seller to Buyer hereunder to "Seller's knowledge" (whether used in the phrase "to the best knowledge of Seller," "to the best of Seller's knowledge", "Seller's knowledge", "actually known to Seller", "known to Seller", or in similar or other contexts) (i) shall refer to the actual knowledge of Mark Olson and Scott Hodson Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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(collectively, "Olson/Hodson"); (ii) shall in no case refer to the actual or constructive knowledge of any other employee, agent, officer, director or other representative of Seller or any investment advisor, attorney or other contractor or representative of Seller (together with Olson/Hodson, the "Seller Representatives"); and (iii) shall in no case impose upon Seller or any Seller Representative any duty or obligation to verify any representation, warranty or statement contained in this Agreement, in any exhibit attached hereto or in any document, certificate or statement to be delivered by Seller to Buyer hereunder, or to otherwise investigate the facts or circumstances relating or otherwise pertinent thereto..

ARTICLE X
BUYER’S WARRANTIES
Buyer hereby covenants that the following representations and warranties are true and correct and shall be true and correct as of the Close of Escrow:

10.1. Power and Authority of Buyer. Buyer is a municipal corporation duly organized and existing under the laws of the State of California and duly qualified to conduct business activities in the State of California. Buyer has the requisite power and authority to enter into and carry out the obligations related thereto imposed upon Buyer pursuant to this Agreement. Buyer has the legal capacity to understand and execute this Agreement and all documents in connection therewith. Buyer has taken all actions necessary or proper to enter into this Agreement and discharge its obligations under this Agreement. Prior to the Close of Escrow, all proceedings required to be taken by or on behalf of Buyer to authorize it to consummate the transaction contemplated by this Agreement will have been duly and properly taken and no further consent of any person or entity will be required in connection therewith.

10.2. Validity of Agreement. This Agreement is a valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms subject to the effect of applicable bankruptcy, insolvency, reorganization or other similar laws affecting the rights of creditors generally.

10.3. Conflict with Existing Agreements and Laws. Neither the execution of this Agreement nor the consummation by Buyer of the transactions contemplated hereby will: (i) conflict with or result in a breach of the terms, conditions or provisions of or constitute a default or result in termination of any material agreement or instrument to which Buyer is a party; (ii) violate any restriction to which Buyer is subject; or (iii) constitute a material violation of any applicable code, resolution, law, statute, regulation, ordinance, judgment, rule, decree or order affecting Buyer.

ARTICLE XI

RISK OF LOSS

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destroyed before the Closing Date from any cause whatsoever, whether an insured risk or not, including, without limitation, fire, flood, accident, or other casualty for which the cost of repair or replacement equals or exceeds ten percent of purchase price (10%), Buyer shall have the option, upon written notice to Seller, to either (i) terminate this Agreement; or (ii) proceed to acquire the Property pursuant to the terms of this Agreement. Buyer must exercise its option as provided in this section within ten (10) business days after notice of such damage or destruction.

If Buyer elects to terminate this Agreement pursuant to this section, (i) the Deposit shall be returned to Buyer; (ii) any title and escrow fees incurred shall be paid by Buyer; and (iii) neither party shall have any further rights or obligations hereunder. If Buyer does not exercise its option to terminate, then the Purchase Price due to Seller from buyer at Closing shall be reduced by the amount of any casualty insurance proceeds actually received by Seller prior to Closing (except to the extent such proceeds have been used by Seller for repair or replacement of the damage caused by the casualty) and, to the extent any such casualty insurance proceeds have not actually been received by Seller prior to Closing, Seller shall assign to Buyer any rights to collect such proceeds and shall reasonably cooperate with Buyer, at no cost to Seller, to collect such proceeds.

11.2. Notice of Pending Action. If Seller has received or, prior to the Close of Escrow, receives notice of any pending action by any federal, state, local or other agency concerning any violation of any law, statute, ordinance or regulation affecting the Property, Seller shall promptly notify Buyer of same. Within ten (10) calendar days of receipt of such notice, Buyer may elect to acquire the Property subject to such violation, or Buyer may elect to terminate this Agreement and neither party will have any further obligation to the other party, in which case the Deposit, plus all interest accrued thereon shall be returned to Buyer and escrow cancellation costs shall be paid by Seller. In the event Buyer elects to terminate the Escrow, neither party shall have any further rights or obligations hereunder and Buyer shall promptly return to Seller the documents and other materials delivered by Seller,

11.3. Condemnation; Notice. If, prior to the Close of Escrow, Seller receives notice of a pending condemnation proceeding concerning any portion of the Property instituted by any party, Seller shall promptly notify Buyer in writing of such pending condemnation. In the event of a condemnation resulting in a taking of five percent (5%) or more of the Property, Buyer shall have the option to terminate this Agreement upon written notice to Seller delivered not later than ten (10) days after receipt of Seller’s notice. If this Agreement is so terminated, neither party shall have any further rights or obligations hereunder and the Deposit, plus all interest accrued thereon, shall be returned to Buyer with all escrow and cancellation costs paid by Buyer, and Buyer shall promptly return to Seller the documents and other materials delivered by Seller. In the event of a taking and Buyer does not elect to terminate this Agreement as provided above, Seller shall assign and turn over to Buyer all awards for the taking by eminent domain which accrue to Seller pursuant to an assignment between Seller, as assignor, and Buyer, as assignee, and containing terms and conditions reasonably acceptable to Seller and Buyer, and the parties shall proceed to the Close of Escrow pursuant to the terms hereof, without modification of the terms of this Agreement and without any reduction in the Purchase Price.

ARTICLE XII
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COVENANTS OF SELLER PRIOR TO CLOSING
During the period from the Effective Date until the earlier of: (a) Close of Escrow or (b) the termination of this Agreement, Seller shall, in addition to the covenants set forth elsewhere in this Agreement:

12.1. No Amendments or Agreements. Not (i) amend or waive any right under any Title Document or (b) enter into any lease or other agreement of any type affecting or relating to the Property that would survive the Closing Date, without Buyer’s prior written consent.

12.2. Insurance. Maintain or cause to be maintained in full force and effect comprehensive general liability casualty and other insurance on the Property in an amount equal to the full replacement cost of the improvements.

12.3. No Liens. Not directly or indirectly cause or knowingly permit to exist, by Seller’s act or omission, any encumbrance, charge, or lien to be placed or claimed upon the Property unless such encumbrance, charge or lien has been approved in writing by Buyer or unless such monetary encumbrance, charge, or lien will be removed by Seller prior to the Close of Escrow.

12.4. Notice to Buyer. Promptly notify Buyer in writing if any of the representations and warranties set forth in this Agreement are no longer true and correct in the form and on the basis on which they were made.

12.5. No Transfer of Property Interest. Except as otherwise required pursuant to this Agreement, not sell, convey, assign, transfer, encumber, or otherwise dispose of the Property or any of Seller’s interest therein, including, without limitation, the Improvements or any part thereof or interest therein, and shall not, without the prior written consent of Buyer, make any modifications, alterations, or improvements to the Property except as otherwise permitted by this Agreement;

12.6. No Use of Hazardous Materials. Not use, produce, process, manufacture, generate, treat, handle, store, or dispose of any Hazardous Materials in, on, or under the Property or use the Property for any such purposes, or release any Hazardous Materials into any air, soil, surface water, or groundwater comprising the Property or knowingly permit any person using or occupying the Property or any part thereof to do any of the foregoing, in violation of any Environmental Laws.

12.7. Compliance with Environmental Laws. Not violate, and not knowingly allow any party to violate, any Environmental Laws applicable to the Property.

12.8. Notice to Buyer Regarding Hazardous Materials. Immediately after obtaining any previously undisclosed substantive information indicating that any Hazardous Materials may be present or any Release or threatened Release of Hazardous Materials may have occurred in, on or under the Property (or any nearby real property which could reasonably be expected to migrate to the Property) or that any uncured violation of any Environmental Laws may have occurred at the Property, give notice thereof to Buyer with a reasonably detailed description of Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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the event, occurrence or condition in question. Seller shall immediately furnish to Buyer copies of all substantive written communications received by Seller (including notices, complaints, claims or citations) concerning any Release or threatened Release of any Hazardous Materials in, on or under the Property or any nearby real property which could migrate to the Property or any uncured past or present violation of any Environmental Laws at the Property.

12.9. Intentionally Deleted.

12.10. Mechanics’ Liens. Except for materials, supplies, or work provided or ordered for the Property at the request of Buyer, Seller must (i) pay for all materials, supplies, and work provided or ordered for the Property for which a labor, materialman’s, or mechanics’ lien may be claimed under applicable law, and (b) if required by the Title Company, provide the Title Company with such indemnifications or security as it may require to insure title to the Property at the Closing without exception for any unrecorded labor, materialmen’s, or mechanics’ claim of lien.

12.11. No Marketing. Not market, show, or list the Property to any other prospective purchasers.

12.12. Existing Financing. Not permit any default, or any event that could give rise to a default with lapse of time or notice, to occur under any existing loan secured by the Property or other financing encumbering the Property.

12.13. Access to Property. Allow Buyer and Buyer’s representatives, agents, and designees access to the Property at all reasonable times until Closing

12.14. Notification of Material Change. Promptly notify Buyer of any material change in any condition with respect to the Property or of any material event or circumstance that makes any representation or warranty of Seller under this Agreement untrue or misleading.

12.15. Service Contracts. Seller shall terminate all service contracts related to the Property before the Closing Date except any that Buyer has specifically elected to assume in a written notice to Seller.

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ARTICLE XIII

BROKERS
Seller shall pay through escrow at Closing and conditional on Closing a commission to CBRE (Heath Kastner) in accordance with a separate agreement by and between Seller and said broker. Seller hereby represents and warrants to Buyer that no other broker or finder has been engaged by it in connection with any of the transactions contemplated by this Agreement. Buyer hereby represents and warrants to Seller, that no broker or finder has been engaged by it, respectively, in connection with any of the transactions contemplated by this Agreement or to its knowledge is in any way connected with any such transactions. The foregoing representations shall survive the Closing Date or termination of this Agreement. In the event of any claims for brokers’ or finders’ fees or commissions in connection with the negotiation, execution or consummation of this Agreement, then Seller shall indemnify, hold harmless, and defend Buyer from and against such claims if they shall be based upon any statement, representation or agreement by Seller, and Buyer shall indemnify, hold harmless and defend Seller from and against any such claims if they shall be based upon any statement, representation or agreement by Buyer.

ARTICLE XIV

MISCELLANEOUS

14.1. Article and Section Headings. The Article and Section headings of this Agreement are for the purposes of reference only and shall not be used for limiting or interpreting the meaning of any Article.

14.2. Notices. All notices under this Agreement must be given in writing and will be deemed sufficiently given and served for all purposes when delivered: (i) personally, in which case it will be deemed to be received on delivery; (ii) by generally recognized overnight delivery service, in which case it will be deemed delivered on the business day after it is delivered to such service for overnight delivery, postage pre-paid; or (iii) three days after deposit in the United States mail certified or registered, return receipt requested, with postage prepaid; addressed to the respective party as follows (or at such other addresses as shall be specified by like notice):

If to Seller:

Pacific Realty Associates, L.P.

Attn: Scott Hodson and Jeff Oswald
15350 S.W. Sequoia Pkwy., Suite 300
Portland, OR 97224
Telephone: (503) 624-6300
If to Buyer:

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City of Yreka
Attn: John Elsnab, City Manager
701 Fourth Street
Yreka, CA 96097
Email: [email protected]
Telephone: (530) 842-4836
With a copy to:

Colantuono Highsmith & Whatley, PC
Attn: Andrew L. Jared
790 E Colorado Blvd., Ste. 850
Pasadena, CA 91101
[email protected]
Tel: (213) 542-5739

14.3. Waiver of Performance. Either party may waive the satisfaction or performance of any conditions or agreements in this Agreement which have been inserted for its own and exclusive benefit. Such waiver must be made in a writing signed by the waiving party, which shall specify the waived condition or agreement and be delivered to the other party hereto in the same manner as written notices hereunder.

14.4. Governing Law. The validity, construction and operational effect of this Agreement shall be governed by the laws of the State of California without reference to the choice of law and conflicts of law rules and principles of such State. Any and all disputes arising under this Agreement shall be brought exclusively in Siskiyou County Superior Court.

14.5. Prior Agreements. This Agreement supersedes any and all oral or written agreements between the parties hereto regarding the Property, which are prior in time to this Agreement. Neither Buyer nor Seller shall be bound by any prior understanding, agreement, promise, representation, or stipulation, express or implied, not specified herein.

14.6. Counterparts. This Agreement may be executed in multiple counterparts and all such executed counterparts shall constitute one agreement, binding on all of the parties hereto, notwithstanding that all of the parties hereto are not signatories to the original or to the same counterpart. This Agreement or any counterpart may be executed and delivered by electronic mail in pdf format and such signatures shall be binding upon the party delivering the same as if they were originals. This Agreement shall not be binding unless and until all parties hereto have executed same.

14.7. Attorneys’ Fees and Costs. In any action between the parties hereto seeking the enforcement of any of the terms and provisions of this Agreement, or in connection with the Property or the Escrow, the prevailing party in such action shall be awarded its reasonable costs and reasonable attorneys’ fees of such action, including any appeal or review thereof.

14.8. Tax-Deferred Exchange. Seller may use the proceeds from the sale of the Property to effect one (or more) tax-deferred exchanges under Internal Revenue Code § 1031.

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Buyer agrees to accommodate Seller in effecting such tax-deferred exchange at any time before the Closing Date. Seller and Buyer agree, however, that consummation of the purchase and sale of Property under this Agreement is not conditioned on such exchange. If Seller elects to make a tax-deferred exchange, Buyer agrees to execute such additional escrow instructions, deeds, documents, agreements, or instruments to effect this exchange, provided that Buyer must incur no additional costs, expenses, or liabilities in this transaction as a result of or in connection with this exchange. Seller agrees to hold Buyer harmless of any liability, damages, or costs, including reasonable attorney fees, that may arise from Buyer’s participation in such exchange.

14.9. Severability. If any portion of this Agreement is held to be unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

14.10. No Merger; Survival of Representations, Warranties and Agreements. All representations, warranties, and agreements contained herein shall survive the Close of Escrow for one year. Buyer and Seller hereby agree to indemnify, defend, and hold harmless the other from any and all loss, liability, damage, cost, or expense (including, without limitation, attorneys’ fees) resulting from any inaccuracy in or breach of any representation, warranty or covenant by the indemnifying party. This Agreement, each provision of it, and all warranties and representations in this Agreement will survive the Closing and will not merge in any instrument conveying title to Buyer.

14.11. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of permitted successors and assigns of the parties hereto. Buyer may not assign its rights under this Agreement without the prior consent of Seller. Buyer shall remain liable for all obligations of Buyer hereunder in connection with any assignment of its interest hereunder.

14.12. Time is of the Essence. Time is of the essence in the performance of the Parties’ respective obligations under this Agreement.

14.13. No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties to it and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any third person to any party to this Agreement or give any third person any right of subrogation or action over against any party to this Agreement.

14.14. Remedies Cumulative. Except as provided herein, the remedies set forth in this Agreement are cumulative and not exclusive to any other legal or equitable remedy available to a party.

14.15. Further Assurances. Buyer and Seller agree to execute all documents and instruments reasonably necessary and to take all other reasonable action required to consummate the purchase and sale herein contemplated.

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order to close (“Holiday”), the act in question may be performed on the next succeeding day that is not a Saturday, Sunday, or Holiday.

14.17. Construction of Agreement. Each party confirms to the other that it has been represented by counsel in connection with the negotiation and drafting of this Agreement, which is the product of extensive negotiations. Accordingly, neither party shall be deemed to be the drafting party for purposes of construction of the terms and provisions of this Agreement.

14.18. Possession. Seller shall deliver possession of the Property to Buyer as of the Close of Escrow, including originals of documents delivered hereunder in Seller’s possession, free of any claims, liens, or tenancies except as expressly permitted by this Agreement.

14.19. IRS Form 1099–S Designation. In order to comply with information reporting requirements of Section 6045(e) of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder, the parties agree: (i) to execute an IRS Form 1099-S Designation Agreement at or prior to the Closing to designate Escrow Holder as the party who shall be responsible for reporting the contemplated sale of the Property to the Internal Revenue Service (the “IRS”) on IRS Form 1099-S; (ii) to provide Escrow Holder with the information necessary to complete Form 1099-S; (iii) that Escrow Holder shall not be liable for the actions taken under this section, or for the consequences of those actions, except as they may be the result of negligence or misconduct on the part of Escrow Holder; and (iv) that Escrow Holder shall be indemnified by the parties respectively for any costs of expenses incurred as a result of the actions taken under this section by the parties, except as they may be the result of negligence or misconduct on the part of Escrow Holder. Escrow Holder shall provide all parties to this transaction with copies of the IRS Forms 1099-S filed with the IRS and with any other documents used to complete IRS Form 1099-S.

14.20. Amendments. This Agreement may be amended only by written agreement signed by both of the parties hereto.

14.21. No Recourse. All persons dealing with Seller must look solely to the property and assets of Seller for the payment of any claim against Seller or for the performance of any obligation of Seller as neither the joint venturers, general partners, limited partners, members, employees, nor agents (as the case may be) of Seller assume any personal liability for obligations entered into on behalf of Seller (or its predecessors in interest) and their respective properties shall not be subject to the claims of any person in respect of any such liability or obligation. As used herein, the words "property and assets of Seller" is limited to Seller's interest in the Property and excludes any rights of Seller for the payment of capital contributions or other obligations to it by any joint venturer, general partner, limited partner or member (as the case may be) in such capacity.

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IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the date first above written.

BUYER:

City of Yreka, a California municipal corporation
By:

Name:

Title:

SELLER:

PACIFIC REALTY ASSOCIATES, L.P.,
a Delaware limited partnership
By: PacTrust Realty, Inc.,
a Delaware corporation,
its General Partner
By:_______________________________
Scott D. Hodson, Vice President
An original fully executed copy of this Agreement, together with the Deposit has been received by Escrow Holder this ____ day of _______________, 2025, and by the execution hereof Escrow Holder hereby covenants and agrees to be bound by the terms of this Agreement. “ESCROW HOLDER”

By:

Name:

Title:

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EXHIBIT A
Legal Description of Property
The Land referred to herein below is situated in the City of Yreka, County of Siskiyou, State of California, and is described as follows:

PARCEL I:

BEING A PARCEL OF LAND LOCATED IN SECTION 27, TOWNSHIP 45 NORTH, RANGE 7 WEST, MOUNT DIABLO MERIDIAN, AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF PARCEL NO. 1, AS SAID PARCEL IS SHOWN ON THAT MAP RECORDED IN PARCEL MAP BOOK 2, PAGE 64, SISKIYOU COUNTY RECORDS; THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 1, NORTH 75° 30' WEST 283.00 FEET TO THE EASTERLY LINE OF FOURTH STREET (50' WIDE); THENCE ALONG SAID EASTERLY LINE SOUTH 16° 37' 35" WEST 383.78 FEET; THENCE CONTINUING ALONG SAID EASTERLY LINE SOUTH 06° 53' 35" WEST

7.46 FEET; THENCE LEAVING SAID EASTERLY LINE SOUTH 82° 49' 30" EAST 354.00 FEET TO THE WESTERLY LINE OF MAIN STREET; THENCE ALONG SAID WESTERLY LINE NORTH 06° 53' 35" EAST 348.84 FEET TO A POINT FROM WHICH THE POINT OF BEGINNING BEARS NORTH 75° 30' WEST 8.69 FEET DISTANT; THENCE LEAVING SAID WESTERLY LINE NORTH 75° 30' WEST 8.69 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THAT PORTION CONVEYED IN THAT CERTAIN GRANT DEED FROM PACIFIC REALTY ASSOCIATES, L.P. A DELAWARE LIMITED PARTNERSHIP TO THE STATE OF CALIFORNIA, DEPARTMENT OF TRANSPORTATION DATED MARCH 29, 2021 AND RECORDED ON JUNE 02, 2021 AS INSTRUMENT NO. 2021-0006149.

APN 061-163-010
PARCEL II:

PARCEL II-A:

A FRACTIONAL PORTION OF LOT 6 OF THE NORTHEAST 1/4 OF SECTION 27, TOWNSHIP 45 NORTH, RANGE 7 WEST, MOUNT DIABLO MERIDIAN, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE EASTERLY LINE OF FOURTH STREET FROM WHICH THE SOUTHWEST CORNER OF LOT 3 IN BLOCK 1 OF FROST TRACT BEARS NORTH 16° 28' EAST, 63.00 FEET; THENCE SOUTH 6° 54' WEST=(SOUTH 7° 03' WEST, RECORD) A DISTANCE OF 122.00 FEET

ALONG THE EASTERLY LINE OF FOURTH STREET TO THE NORTHWEST CORNER OF THE PARCEL DESCRIBED IN DEED TO ROBERT W. BAYUK, ET UX, RECORDED SEPTEMBER 29, 1970 IN BOOK 602 OFFICIAL RECORDS, PAGE 158; THE SOUTH 86° 24' EAST, 135.00 FEET; THENCE NORTH 6° 54' EAST=(NORTH 7° 03' EAST, RECORD) A DISTANCE OF 35.75 FEET TO THE SOUTHWEST CORNER OF THE PARCEL CONVEYED TO ALBERT H. NEWTON, SR. BY DEED RECORDED JULY 08, 1966 IN BOOK 531 OFFICIAL RECORDS, PAGE 319; THENCE SOUTH 86° 24' EAST, 20.03 FEET TO THE SOUTHEASTERLY CORNER OF SAID PARCEL; THENCE NORTH 6° 54' EAST, 77.5 FEET TO A POINT ON THE SOUTHERLY LINE OF THE DAVIS LOT; THENCE NORTH 83° 06' WEST, 153.0 FEET MORE OR LESS ALONG THE SOUTHERLY LINE OF THE DAVIS LOT TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM A PORTION OF SECTION 27, TOWNSHIP 45 NORTH, RANGE 7 WEST, MOUNT DIABLO MERIDIAN, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

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BEGINNING AT THE SOUTHEAST CORNER OF PARCEL I AS SAID PARCEL IS SHOWN ON THE MAP RECORDED IN PARCEL MAP BOOK 2, PAGE 64, SISKIYOU COUNTY RECORDS; THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL I, NORTH 75° 53' WEST 283.00 FEET, TO THE EASTERLY LINE OF FOURTH STREET (50' WIDE); THENCE ALONG SAID EASTERLY LINE SOUTH 16° 37' 35" WEST, 383.78 FEET TO THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID EASTERLY LINE SOUTH 80° 03' 32" EAST, 154.47 FEET; THENCE NORTH 82° 49' 30" WEST, 154.65 FEET TO SAID EASTERLY LINE OF FOURTH STREET (50' WIDE); THENCE ALONG SAID EASTERLY LINE NORTH 9° 56' 28" EAST, 7.46 FEET TO THE TRUE POINT OF BEGINNING.

PARCEL II-B:

INTENTIONALLY DELETED.

APN 061-272-030 & 061-272-070
PARCEL III:

PARCEL III-A:

LOT 1 OF BLOCK 1, ACCORDING TO THE "MAP OF LEMAY'S ADDITION TO YREKA", FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 04, 1913 IN LIBER 1, TOWN MAPS, PAGE 59.

AND A TRACT OF LAND BEING A PORTION OF SECTION 27, TOWNSHIP 45 NORTH, RANGE 7 WEST, MOUNT DIABLO MERIDIAN, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF PARCEL I AS SAID PARCEL IS SHOWN ON THAT MAP RECORDED IN PARCEL MAP BOOK 2, PAGE 64 SISKIYOU COUNTY RECORDS; THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL I, NORTH 75° 30' WEST 283.00 FEET TO THE EASTERLY LINE OF FOURTH STREET (50' WIDE); THENCE ALONG SAID EASTERLY LINE SOUTH 16° 37' 35" WEST, 383.78 FEET; THENCE LEAVING SAID EASTERLY LINE SOUTH 80° 03' 32" EAST, 154.47 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 6° 53' 35" WEST, 12.5 FEET; THENCE SOUTH 86° 24' 25" EAST, 200.08 FEET TO THE WESTERLY LINE OF MAIN STREET; THENCE NORTH 82° 49' 30" WEST, 199.75 FEET TO THE TRUE POINT OF BEGINNING.

INTENTIONALLY DELETED.

APN 061-281-010
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SCHEDULE 1
Property Records
[see attached]
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Property - 915 S. Main St., 927 S. Main St., 918 Fourth St., Yreka, CA 1 ALTA Survey & Title Commitment
2/16/2022 ALTA Survey
4/7/2025 Title Commitment
2 Legal General
10/17/1979 Quit Claim Deed
12/10/1979 Easements with Covenants and Restrictions Affecting Land 7/31/1981 Grant of Easement (Utility)
4/6/1990 Corporation Grant Deed (Safeway to Sushi) - 915 S. Main Street 4/6/1990 Corporation Grant Deed (Sushi to PDA) - 915 S. Main Street 7/31/1991 Grant of Easement - Electrical Underground Distribution Line Easement 3/6/2001 Grant Deed (PDA to Safeway)
6/14/2001 Deed (Safeway to Pacific Realty Associates, L.P.) 9/26/2014 Grant Deed (Herfindahl to Pacific Realty Associates, L.P.) - 918 Fourth Street 9/26/2014 Grant Deed (Herfindahl to Pacific Realty Associates, L.P.)- 927 S. Main Street 2/3/2021 Executed Right of Way Contract - CDOT
6/2/2021 Grant Deed to CDOT
6/9/2022 State of California Encroachment Permit
3 Statement of Operations
2022-2025 Statement of Operations
4 Tax Bills
2022-2023 Tax Bill
2023-2024 Tax Bill
2024-2025 Tax Bill
5 Third Party Reports
4/1/1990 Phase I Environmental Site Assessment
6/14/2001 Phase I Environmental Site Assessment
8/2/2001 Results of Soil and Groundwater Sampling
6/28/2007 Asbestos Survey and Lead Surface Coating Evaluation - 915 S. Main Street 8/3/2011 Asphalt Pavement Evaluation
12/14/2011 Roof Inspection - 915 S. Main Street
9/24/2012 Exterior Siding Investigation - 915 S. Main Street 3/3/2014 Service Contract with Tilton Pacific - Miscellaneous Work - 915 S. Main Street 3/30/2014 Environmental Survey for Renovation - Building Survey for ACM - 915 S. Main Street 3/30/2024 Building Survey for ACM - 915 S. Main Street
4/30/2014 Service Contract with Tilton Pacific - Asbestos Work - 915 S. Main Street 5/19/2014 Geologic and Soils Investigation of Parking Lot Sub-grade Collapse 5/27/2014 Cost Proposal for Parking Lot Sub-grade Collapse Subsurface Stabilization 6/16/2014 Parking Lot Sub-grade Collapse Map & Transects 6/27/2014 Structural Calculations for Concrete Slab for Soil Cap by Schlumpberger Consulting Engineers, Inc. 6/27/2014 Structural Plan & Section & Details by Schlumpberger Consulting Engineers, Inc. 7/7/2014 Clearance Air Sampling Report by Anderson Environmental Consulting Group - 915 S. Main Street 7/9/2014 West Coast Paving Invoice and Close Out
7/11/2014 Environmental Survey for Renovation - Building Survey for ACM by Monte Deignan & Associates 918 4th St. 7/11/2014 Environmental Survey for Renovation - Building Survey for ACM by Monte Deignan & Associates 927 S. Main 7/24/2014 Final Phase I ESA Report- 927 S Main St. & 918 Fourth St., Yreka 10/10/2014 Asbestos Manifests - 927 S Main St. & 918 Fourth St., Yreka 10/13/2014 Polarized Light Microscopy Asbestos Analysis Report - 918 Fourth St 10/27/2014 4th St Baker Environmental Invoice - 918 Fourth St 11/14/2018 Roof Inspection Report & Invoice - 915 S. Main Street 7/26/2019 Roof Inspection Report & Invoice - 915 S. Main Street 12/16/2019 Roof Inspection Report & Invoice - 915 S. Main Street 11/3/2020 Asbestos Testing on Roof by Adam Labs - 915 S. Main Street 5/31/2021 Roof Inspection Report & Invoice - 915 S. Main Street 11/8/2021 Roof Inspection Report & Invoice - 915 S. Main Street 5/17/2022 Roof Inspection Report & Invoice - 915 S. Main Street 6/1/2022 Phase I Environmental Site Assessment by Geocon for Siskiyou County 8/31/2023 Sealcoat Stripe Wheel Stops Repairs West Coast Paving 7 Plans / As-Builts
7/1/1979 Survey Prior to Construction of Safeway
7/1/1980 Safeway Shell Drawings
1/21/2014 Historic Floor Plan
4/18/2014 Shopping Center Topography
8 Service Agreements
1/10/2023 Security Systems Monitoring - Advanced Security Systems Docusign Envelope ID: BF69CD04-4C5A-4AE6-A22C-B881A838B1CB Yreka City Council Agenda
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Adoption of Active
Transportation Plan
To: City Council
From: Juliana Lucchesi, AICP, Assistant City Manager
Subject: Discussion/Possible Action: Adoption of Siskiyou County Active Transportation Plan recommendations as the City of Yreka’s Active Transportation Plan.

Document Links: 1. Active Transportation Plan

2. Appendix A: Existing Conditions Report

3. Appendix B: Community Engagement Summary

4. Appendix C: Walking Audit Summary

5. Appendix D: Prioritization Methodology

6. Appendix E: Project Recommendation and Cost Estimates Attachments: RESOLUTION NO. 2025-33 “Resolution Of The City Council Of The City Of Yreka Adopting The Siskiyou County Active
Transportation Plan As The City Of Yreka Active Transportation Plan”
Summary:

The California Active Transportation Program (ATP) provides funding for projects that aim to increase the number of non-motorized transportation trips in communities. These projects aim to increase access and safety of cycling, pedestrian, scooter, and non-motorized travel. Siskiyou County Local Transportation Commission (LTC) commissioned a county-wide Active Transportation Plan that meets the requirements set forth in the California ATP which was adopted earlier this year. The City of Yreka was an active participant in the plan development through staff consultation, recommendation, and community engagement in the City of Yreka. The City of Yreka can adopt the County ATP to be eligible for upcoming grant cycles for SafeRoutes to Schools, Active Transportation Grant Program, and other transportation funds not currently available to the City.

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Background:

California's Active Transportation Program (ATP) is a state program that helps cities and counties build better accessibility, bike paths, and walking areas. The program was created by state laws that prioritize alternative modes of transportation. These laws, like the Complete Streets Act from 2008, make sure that all types of travelers can get around safely. Cities must include bike lanes and sidewalks in their planning, and they must work together with other nearby cities to connect their bike and walking paths.

The ATP gives money to cities for projects that help more people walk, roll, and bike more. The program helps California reach its goals of having cleaner air, healthier people, and fewer car crashes resulting in cyclist or pedestrian fatalities.

When cities use this program, they help people exercise more, make streets safer, and make their communities better places to live.

Since its inception, the Active Transportation Program has funded over 800 active transportation projects across the state benefiting both urban and rural areas.

More than 400 of the funded projects are Safe Routes to Schools projects and programs that encourage a healthy and active lifestyle throughout students' lives.

In addition, every cycle has seen more than 85% of funds going towards projects that will benefit disadvantaged communities throughout the state.

General Plan & City Code Consistency:

The City of Yreka General Plan Circulation Element guides the City’s transportation infrastructure and programming development. Within the Circulation Element, Goal CI.6 aims to provide safe, convenient, and attractive routes for pedestrians and bicyclists of all ages throughout Yreka. The programs linked to this goals that would be met by adopting the proposed ATP are:

Program CI.6.A The City should support efforts to develop a comprehensive bicycle route system within Yreka.

Program CI.6.B Pedestrian and bicycle improvements shall be prioritized in the following order:

1. Projects which increase safety for children traveling to and from school.

2. Projects which remove barriers to handicapped individuals. 3.

Projects which increase overall convenience and safety for pedestrians and bicyclists
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Program CI.6.D The City should ensure that the trail system provides connectivity between schools, shopping, housing and employment centers.

The adoption of the proposed ATP would meet three programs within the Circulation Element of the City of Yreka General Plan and provide new feedback to be incorporated into the General Plan update.

Environmental Review:

The adoption of the Active Transportation Plan is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, and pursuant to Section 15183.3 regarding streamlining for infill projects
Individual projects recommended in Appendix E will be analyzed for CEQA on a case-by-case basis to determine if there are potential impacts to the environment and if the projects are exempt from CEQA.

Fiscal Impact:

Adoption of the Active Transportation does not require the City of Yreka to appropriate any funds to Active Transportation projects unless the City Council decides to allocate funds in the capital improvements program.

Review by Public & Outside Agencies:

The Active Transportation Plan conducted a robust public outreach and engagement process that is summarized in Appendix B and C. In addition to the outreach conducted during plan development, an email was sent to all participants that attended the Yreka workshop to notify them of the potential adoption of this plan.

City Staff has not received any specific public comment related to this item at the time of this agenda posting.

Recommended Actions:

1. Motion to Adopt Resolution 2025-33 of the City Council of the City of Yreka adopting the City of Yreka Active Transportation Plan.

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RESOLUTION NO. 2025-33

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA

ADOPTING THE SISKIYOU COUNTY ACTIVE TRANSPORTATION

PLAN AS THE CITY OF YREKA ACTIVE TRANSPORTATION PLAN
WHEREAS, the City of Yreka is committed to promoting sustainable transportation options, improving public health, and enhancing quality of life for all residents; and WHEREAS, California Government Code Section 65302(b)(2)(A) requires that the circulation element of a general plan identify a system of major transportation routes, including bicycle and pedestrian facilities; and
WHEREAS, the California Active Transportation Program (ATP), established under Streets and Highways Code Section 2380 et seq., provides funding for projects that increase the proportion of trips accomplished by biking and walking; and
WHEREAS, California Assembly Bill 1358 (2008) and Senate Bill 99 (2013) require regional transportation plans to include a bicycle and pedestrian component that identifies priority corridors and promotes active transportation; and
WHEREAS, the California Complete Streets Act (Assembly Bill 1358, 2008) requires circulation elements to plan for a balanced, multimodal transportation network that meets the needs of all users including pedestrians, bicyclists, transit riders, and motorists; and WHEREAS, the California Environmental Quality Act (CEQA) encourages local agencies to develop transportation systems that promote alternative transportation and reduce reliance on single-occupancy vehicles; and
WHEREAS, the Siskiyou County Active Transportation Plan has been prepared in accordance with California Department of Transportation (Caltrans) guidelines and best practices for active transportation planning; and
WHEREAS, the Active Transportation Plan supports the implementation of the City of Yreka’s General Plan Circulation Element goals related to transportation, land use, and public health; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yreka as follows:

Section 1. The City Council hereby finds and determines that the foregoing recitals are true and correct.

Section 2. The City Council has determined that adoption of the Active Transportation Plan is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, and pursuant to Section 15183.3 regarding streamlining for infill projects
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Section 3. The City Council hereby adopts the “Siskiyou County Active Transportation Plan" dated April 2025, including all maps, appendices, and supporting documents, which is incorporated herein by reference and on file with the City Clerk.

Section 4. The City Council finds that the Active Transportation Plan is consistent with the City of Yreka General Plan, particularly the Circulation Element, and furthers the goals and policies contained therein.

Section 5. The City Manager and city department heads are hereby authorized and directed to:

A. Implement the Active Transportation Plan in accordance with its terms and the City’s capital improvement program;
B. Apply for federal, state, and regional funding opportunities, including but not limited to California Active Transportation Program grants, federal Transportation Alternative Program funds, and other available funding sources;
C. Coordinate with Caltrans, Siskiyou County Local Transportation Commission, regional transportation agencies, adjacent jurisdictions, and other stakeholders on implementation of regional active transportation connections;
D. Develop design standards and guidelines consistent with Caltrans standards and CAlfironai Manual on Uniform Traffic Control Devices (CA MUTCD);
E. Prepare annual progress reports on the Active Transportation Plan implementation within the City to partner with the General Plan Annual Progress Report; F. Return to the City Council with recommendation for plan updates as needed, and no less than every five years.

Section 6. This Resolution shall take effect immediately upon adoption.

Section 7. If any section, subsection, sentence, clause, or phrase of this resolution is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this resolution.

Passed and adopted this 16th day of September, 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
____________________________
Colleen Baker
Mayor of the City of Yreka
Attest:
_____________________________
Cyndy Prohaska, City Clerk
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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: September 16, 2025
(Note: This item was tabled at the August 19, 2025 Regular Meeting at the request of Mayor Colleen Baker.)
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, Yreka City Council Agenda
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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.

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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Introduction of Proposed
Cannabis Ordinance Update
To: City Council
From: Juliana Lucchesi, AICP, Assistant City Manager
Subject: Discussion/Direction on Cannabis Ordinance Updates Attachments: 1. Proposed Ordinance Amendments
Summary:

The City of Yreka applied for and received a Retail Cannabis Licensing Program Grant from the Department of Cannabis Control (DCC) to update the City’s cannabis related ordinances to meet new state mandates surrounding medicinal non-retail storefront licensing. The city staff with the assistance of SCI Consulting, City Contractor, conducted public outreach related to cannabis uses and licensing and prepared proposed changes to the City’s ordinance to address the public outreach, council direction, and meet the new state mandates. City Staff seek public and Council input on the proposed direction of the final ordinance changes prior to the presentation of a first reading of the ordinance.

Background:

The Medicinal Cannabis Patients' Right of Access Act, effective January 1, 2024, prohibits local jurisdictions from adopting or enforcing regulations that ban the delivery of medicinal cannabis within their jurisdiction. This act ensures that medicinal cannabis is accessible in a timely manner to patients and caregivers, in quantities that meet the local demand. Enforcement of this act can be sought by medicinal cannabis patients, businesses, the Attorney General, or other authorized parties through a writ of mandate. The bill, Senate Bill 1186, signed into law by Governor Newsom in September 2022, imposes additional responsibilities on local jurisdictions.

In March 2023, the City successfully applied for and was awarded a Retail Cannabis Licensing Program Grant from the State of California's Department of Cannabis Control (DCC). On February 6, 2024, the City Council approved a contract with the DCC for the $115,000 grant, designated to support the development of a comprehensive retail cannabis licensing program.

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The City engaged SCI Consulting Group (“SCI”) to assist with implementation of the grant, conduct public engagement and outreach, and in establishing the retail cannabis licensing framework. SCI provided the City with an outreach campaign and draft cannabis ordnance changes based on the public feedback, council direction at the December 3, 2024 meeting, and state required changes.

Public Engagement and Outreach
SCI led a series of outreach efforts aimed at educating the community about SB 1186 and engaging residents in meaningful policy discussions regarding regulated commercial cannabis activity and options for developing a local ordinance.

The outreach campaign included multiple components: an online survey, an inperson community meeting on September 11, and a virtual meeting on October

10. SCI Consulting Group developed the community survey to gather input from local residents on potential amendments to Yreka’s cannabis ordinances.

The community meetings, attended by 10 residents, provided a comprehensive overview of SB 1186, included a presentation on potential ordinance changes, facilitated group discussions, and concluded with an anonymous poll to gather participant feedback. In addition, the online survey collected a total of 317 responses, offering further insights into community perspectives.

Feedback from the Meetings and Survey Results
Community meeting attendees and survey respondents were presented with a series of policy questions to gather input on the development of a retail cannabis program. The questions included:
• Whether the City should permit adult-use (recreational) cannabis in addition to medicinal retail cannabis delivery.
• Preferences between having a storefront retail cannabis business in the City versus a delivery-only cannabis business.
• Suggestions for any additional types of cannabis businesses that should be allowed beyond medicinal retail cannabis delivery, with respondents asked to select all applicable options.

At the community meeting, 4 out of 10 attendees expressed support for adult-use retail, while 3 out of 7 preferred having a storefront retail option over a deliveryonly service. The survey results further emphasized community support, with 76% of respondents favoring the allowance of adult-use cannabis alongside Yreka City Council Agenda
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medicinal cannabis, and 75% expressing a preference for storefront cannabis businesses over delivery-only options.

Cannabis Ordinance Amendments
At the December 4, 2024, City Council meeting, the City Council gave staff direction to move forward with minimal changes to the content of the existing cannabis ordinances within the Yreka Municipal Code. The City Council gave direction to only allow the state mandated medicinal non-retail storefront cannabis which would allow a facility to store medicinal cannabis products and delivery them throughout the community to qualified medicinal cannabis users.

Discussion on Proposed Changes:

There are three titles within the Yreka Municipal Code that require changes to accommodate the new state standard which allows for the establishment of medicinal non-retail storefront medicinal cannabis uses. A medicinal non-retail storefront use is a cannabis facility that is not open to the public and does not allow onsite purchases. The medicinal non-retail storefront is allowed to deliver cannabis products. The City Council has given direction to limit the medicinal non-retail storefront uses further by only allowing the delivery and offsite sale of medicinal cannabis to qualified consumers.

Titles 5, 9, and 16 contain sections that pertain to the regulation, zoning, and operations of cannabis-based business that need to be amended to meet the minimum state standard.

Zoning for Cannabis Facilities
Prior to the proposed amendments, all cannabis uses were prohibited. Therefore, no zoning designations are identified as areas where cannabis uses can exist.

Since the proposed amendments would only allow medicinal non-retail storefront, the majority of cannabis uses will still be without zoning designations until the City Council wishes to move forward with allowing those other uses.

A review of the existing zoning code shows that medicinal non-retail storefront is similar to uses in the Downtown Commercial (C-2), Commercial Highway (CH), and the Light Industrial (M-1) zones. Medicinal non-retail storefront uses would be required to apply and receive a cannabis business permit prescribed in the proposed ordinances prior to operation. The use would also be subject to all other applicable municipal code sections related to business operations and site development.

The medicinal non-retail storefront use relies only on delivery for sales; therefore, it is recommended to prohibit this use in the downtown Historic District of the city Yreka City Council Agenda
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that is better served by active uses. Active uses are those that rely on and encourage foot traffic.

It should be noted that cannabis uses are not allowed within 600 feet of sensitive uses such as youth centers, schools, and commercial daycares. This section within the proposed ordinance amendments to ensure compliance with state minimum standards.

Existing Code Audit and Clean-up
The Yreka Municipal Code Chapters 9.25, 9.26, and 9.27 are cleaned up in the proposed ordinance, but keep the initial intent of prohibiting all cannabis uses; except the medicinal non-retail storefront use. In addition to amending these chapters to allow the minimum standard, there are amendments to modernize the code to meet current best practice. Examples of modernization can be found in the definitions section of the proposed ordinance amendments, Cannabis Business Permitting
The proposed amendments to the Titles 5 and 9 create a permitting system to allow staff clear direction on permitting processes within the city. The proposed amendments are broad in language to address cannabis uses as whole, but the only allowed use upon passage of these amendments would be the medicinal non-retail storefront. The broad language and direction would create a clear, legal process for cannabis business applicants that can be used in the future if the City Council wishes to expand the types and number of cannabis uses within the city. Creating a permitting system in this fashion would lead to less costs in the future if the City Council wishes to permit new uses.

The use of a broad permitting system would also reduce costs in the long-run for the City. City staff are charged with implementing the permitting process prescribed in the municipal code. Continuously changing processes would lead to more training of staff and applicants and updating application documents to ensure they meet the new system. Creating a single broad system would prevent major changes to the process that would require the expenditure of funds on staff training and application documentation updates.

Environmental Review:

The proposed cannabis ordinance amendments is covered by the “common sense” exemption under the California Environmental Quality Act (CEQA). These amendments are exempt from the CEQA because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment (CEQA Guidelines §15061 (b)(3)) and will not result in a direct or reasonably Yreka City Council Agenda
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foreseeable indirect physical change in the environment (CEQA Guidelines § 15060(c)(2)).

Fiscal Impact:

There is no fiscal impact to the City of Yreka. The costs associated with public outreach and ordinance updates are funded through the Retail Cannabis Licensing Program Grant.

Recommended Actions:

1. Collect public input

2. Discussion and Direction to Staff
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ORDINANCE NO. ___________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YREKA,
CALIFORNIA, ADDING CHAPTER 5.30 “CANNABIS BUSINESS
ACTIVITIES” TO TITLE 5 “BUSINESS REGULATIONS AND LICENSES”

TO REGULATE MEDICINAL CANNABIS NON-STOREFRONT RETAIL
BUSINESSES; AMENDING CHAPTER 16.100 “MEDICAL MARIJUANA
DISTRIBUTION FACILITIES”; AMENDING CHAPTER 9.25 “MEDICAL MARIJUANA DISTRIBUTION FACILITIES”; AMENDING CHAPTER 9.26 “MEDICAL MARIJUANA CULTIVATION, DISTRIBUTION AND
DELIVERY PROHIBITED” AND FINDING THIS ACTION IS EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
PURSUANT TO ______.

WHEREAS, this article is adopted pursuant to the authority granted to the City by Section 7 of Article XI of the California Constitution, California Government Code sections 50022.1-50022.8 and 50022.10, Title 4, Division 19 of the California Code of Regulations, and the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”); and

WHEREAS, the California Legislature passed SB 1186 (Weiner) which affective January 1, 2024, prohibits cities 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, 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
WHEREAS, provisions in the Yreka Municipal Code require revision to comply with this provision;
WHEREAS, the City Council approved application for a grant to draft such revisions to the Yreka Municipal Code, and such grant was awarded to the City.

THE CITY COUNCIL OF THE CITY OF YREKA DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The City Council finds the foregoing recitals and their findings to be true and correct, and hereby incorporates such recitals and their findings into this ordinance.

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SECTION 2. Amendment of Title 5 “Business Regulations” Chapter 5.30“Cannabis Business Activities” is added to Title 5 “Business Regulations and Licenses” of the Yreka Municipal Code to read as follows:

Chapter 5.30 Cannabis Business Activities

5.30.010 Purpose and Intent
It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") to accommodate the needs of medically ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same by establishing a local permit system for such businesses to address sensible regulations to protect the City's residents, neighborhoods, and businesses from disproportionately negative impacts . It is also the purpose and intent of this Chapter to provide access to medicinal cannabis for persons aged 18 and over as authorized by the MAUCRSA. It is the purpose and intent of this Chapter to regulate the commercial sale, delivery and testing of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City and to enforce rules and regulations consistent with state law through a local permit system.

5.30.020 Definitions
The following are definitions of terms used in this chapter:
"Applicant" means a person or entity that submits an application for a annabis business permit under this Chapter.
“Authorized” means allowed by and properly obtaining all required licenses, permits, approvals, and any other required review based on all applicable federal, state, and local laws, regulations, and codes.
“Cannabis” has the same meaning as that appearing in Business and Professions Code Section 26001. “Cannabis” means all parts of the plant cannabis sativa Linnaeus, cannabis indica, or cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the Yreka City Council Agenda
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mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis business permit" means a regulatory permit issued by the City pursuant to this Chapter, to a commercial annabis business and is required before any commercial cannabis activity may be conducted in the City. "Cannabis business permittee" or "bermittee" means a person or entity that has received a cannabis business permit from the City as authorized under this Chapter. “Cannabis product” has the same meaning as in Section 11018.1 of the Health and Safety Code. “Cannabis product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Yreka, California.
"City manager" means the City of Yreka, city manager, or their designee. "Medicinal commercial cannabis business" or "mediincal cannabis business" means any business or operation which engages in medicinal or medical commercial cannabis activity authorized by this Chapter.
“Commercial cannabis activity” has the same meaning as in Section 26001 of the Business and Professions Code. “Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products.
“Medicinal commercial cannabis activity” or “medical commercial cannabis activity” is commercial cannabis activity related to medicinal cannabis or medicinal cannabis product.
“Cultivation” has the same meaning as in Section 26001 of the Business and Professions Code. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. “Day care center” means a child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, or school age child care centers, and child care centers licensed by the California Department of Social Services.
"Delivery'' shall have the same meaning as that appearing in Business and Yreka City Council Agenda
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Professions Code Section 26001. “Delivery” means the commercial transfer of cannabis or cannabis products to a customer.
"Dispense” means any activity involving the retail sale of cannabis or cannabis products from a retailer.
“Distribution” has the same meaning as in Section 26001 of the Business and Professions Code. “Distribution” or “distribute” means the procurement, sale, and transport of cannabis and cannabis products between licensees. “Distribution” has the same meaning as in Section 26001 of the Business and Professions Code. “Distributor” means a cannabis business that is authorized to engage in the distribution of cannabis and cannabis products. "Limited-access area" means an area in which cannabis is stored or held and is only accessible to a permittee and authorized personnel.
"Local Agency" means county, city, or city and county.
“Manufacture” has the same meaning as in Section 26001 of the Business and Professions Code. “
"Medicinal cannabis" or "Medicinal cannabis product" means 1) the same meaning as in Section 26001 of the Business and Professions Code, or 2) cannabis or a cannabis product, respectively, intended to be sold or donated for use
a) pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation, or b) in compliance with any compassionate use, equity, or other similar program administered by the city .
"Medicinal non-storefront retailer (delivery only)" means a business premises that is not open for public access and provides medicinal cannabis and medicinal cannabis products to customers solely by means of a delivery service which the retailer owns and controls. The physical location and premises of the medicinal non-storefront retailer shall only be used for delivery purposes and be closed to public access. "Owner" means any of the following:

A. a person with an aggregate ownership interest of 5 percent or more in the cannabis business, unless the interest is solely a security, lien or encumbrance; or
B. an individual who manages, directs, or controls the operations of the Yreka City Council Agenda
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commercial cannabis business, including but not limited to:
a. A member of the board of directors of a nonprofit.
b. A general partner of a cannabis business that is organized as a partnership.
c. A nonmember manager or manager of a cannabis business that is organized as a limited liability company.
d. The trustee(s) and all persons who have control of the trust and/or the cannabis business that is held in trust.
e. An individual with the authority to provide strategic direction and oversight for the overall operations of the commercial cannabis business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.
f. An individual with the authority to execute contracts on behalf of the cannabis business.

C. When an entity or person is an owner in a cannabis business, all entities and individuals with a financial interest in the entity with aggregate ownership interest of 5 percent or more in the cannabis business shall be disclosed to the city and shall be considered owners of the cannabis business. The following shall be shall disclosed to the city and shall be considered owners of the cannabis business: chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or nonmember managers of the entity. Each person or entity disclosed as having a financial interest greater than 5% must disclose the identities of persons holding financial interests until only individuals remain as the names of disclosed parties, i.e., all members of an LLC/LLP/Partnership, etc., shall be disclosed.
"Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit. "Physician's recommendation" has the same meaning as in Section 26001 "Physician's recommendation" means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.
"Premises" has the same meaning as in Section 26001 of the Business and Professions Code. “Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control Yreka City Council Agenda
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of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises for purposes of this code shall be a contiguous area and shall only be occupied by one licensee.
"Retailer" or "Storefront Retailer" has the same meaning as “Retailer” in Section 26001 of the California Business and Professions Code and shall mean any establishment which engages in the retail sale of cannabis at a fixed location. The definition of retailer or storefront retailer shall not include a properly permitted medicinal non-storefront retailer (delivery only) as defined in and properly operating under this chapter.
"State Agency" includes every state office, officer, department, division, bureau, board and commission.
“State license” means any license required by the state of California for the operation of a cannabis business, including but not limited to licenses issued under Division 10 of the Business and Professions Code.
"Testing Laboratory" means a laboratory, facility or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and (2) licensed by the State Department of Cannabis Control.
"Youth center" means any public or private facility that is used for any of the following purposes:

A. Public or private parks,
B. Hosting recreation or social activities for minors, more than one hour per week,
C. Licensed or unlicensed day care facilities for 3 or more children requiring a business license issued by the city,
D. Private youth membership organizations or clubs,
E. Social service teenage club facilities,
F. Video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or G. Amusement park facilities.

5.30.030 Legal Authority
This Chapter is adopted pursuant to the authority granted to the City by Section 7 of Article XI of the California Constitution, Sections 50022.1-50022.8 and 50022.10 of the California Government Code, Title 4, Division 19 of the California Code of Yreka City Council Agenda
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Regulations, and the provisions of the MAUCRSA.

5.30.040 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter
Except as specifically authorized by this Chapter and Chapter 16.100, commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution, or transportation, of cannabis or cannabis products is expressly prohibited in the City.

5.30.050 Compliance with State and Local Laws and Regulations It is the responsibility of the owners and/or operators of any Commercial Cannabis Business within the City limits to ensure that they operate in a manner compliant with this Chapter, all applicable state and local laws, and any regulations promulgated thereunder, including but not limited to the MAUCRSA.

5.30.060 Cannabis Business Permit Required to Engage in Cannabis Business Activity
A. No person may engage in any Cannabis Business within the City, including cultivation, manufacture, processing, laboratory testing, distributing, dispensing, or sale of cannabis or a cannabis product, unless the person meets all of the following requirements:

1. Possess a valid Cannabis Business Permit from the City;

2. Possess a valid Business Tax Certificate from the City;

3. Possess a valid State of California Seller's Permit and all other applicable required licenses and permits from the State of California;

4. In in compliance with this Chapter and Chapter 16.100; and

5. Is currently in compliance with all applicable state and local laws and regulations pertaining to the Cannabis Business and the cannabis activities, including the duty to obtain any required state licenses.

B. It shall not be a violation of this Code for an agent of a state agency, as defined in Section 1100 of the Government Code, or a local agency, as defined in Section 50001 of the Government Code, to possess, transport, or obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the state or local agency.

5.30.070 Cannabis Owners Criminal Background
A. Any person who is an owner or who otherwise works within a Cannabis Business must be legally authorized to do so under applicable state law.

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B. Cannabis Business owners and anyone who otherwise works within a Cannabis Business shall be required to:

1. Submit to a criminal background check by the Yreka Police Department for themselves.

2. Complete a criminal background check prior to issuance or transfer of a Cannabis Business Permit.

C. The City shall conduct criminal background checks which must, at a minimum, identify the following:

1. Whether the owner has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offense in other states;

2. Whether the owner has ever been convicted of a serious felony, as defined by California Penal Code 1192.7 or equivalent offense in other states;

3. Whether the owner has ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

4. Whether the owner has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

5. Whether the owner has ever been convicted of a felony involving fraud, deceit, or embezzlement.

D. Evidence of a conviction of any the offenses enumerated in Section

5.30.070(C) of this Code shall be grounds for denial or revocation of a Cannabis Business Permit, and/or employment with a Cannabis Business permittee in the City of Yreka.

5.30.080 Persons Prohibited from Holding a Permit or from Employment with a Cannabis Business Permittee
Any person is prohibited from holding or maintaining a Cannabis Business Permit, or Yreka City Council Agenda
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from being employed at a Cannabis Business, if any of the following apply:

A. A criminal background check demonstrates the applicant has committed any of the crimes identified in Section 5.30.070(C);
B. In the past five years, the applicant has been denied a state cannabis license or permit, or has had a cannabis license or permit suspended or revoked by any city, county, city and county or any other state cannabis licensing authority, except if a license or permit was denied due to the fact that a limited number of licenses or permits was issued by a local jurisdiction, or the denial was based on cannabis related criminal offenses that are no longer criminal offenses under California State law;
C. In the past five years, the applicant was notified by the state, county, or city that it was conducting commercial cannabis activity in violation of city ordinances, codes, and requirements, and failed to cure the violation in a timely manner;
D. Evidence that the applicant is delinquent in payment of federal, state, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;
E. The applicant is prohibited by state law from obtaining a state license or permit related to commercial cannabis; and
F. The applicant, or any of its officers, directors, owners, managers, or employees are under 21 years of age.

5.30.090 Maximum Number and Type of Authorized Cannabis Businesses Permitted
This section is intended to create a maximum number and types of Cannabis Businesses that may be issued permits to operate in the City.

A. The following cannabis license types and maximum number are authorized to operate in the City of Yreka:

1. Medicinal Non-Storefront Retailer (Delivery Only); Maximum number:

3. B. Cannabis license types not identified in Section 5.30.090(A) are prohibited from obtaining a Cannabis Business Permit in the City of Yreka.

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C. No more than the number of permits identified in subsection A shall be issued without amendment of such subsection by the City Council. Any permit issued in excess of the number of permits identified in this subsection without the formal revocation by City Council of a previously-issued permit shall be null and void.

D. Social Equity Accommodations

1. To promote equity and support communities disproportionately impacted by past cannabis enforcement policies, applicants qualifying as a Social Equity Applicant, as defined section 5.30.420 may request one of the following accommodations:
i. Fee waiver: waiver of application fee due pursuant to section

5.30.120.C;
ii. Technical assistance: assistance from staff (up to 5 hours) to assist with filing an application required pursuant to section

5.30.130; or
iii. Priority: advancing application in priority to first application reviewed, regardless of order in which application was
submitted.

2. The following shall apply to Applicants asserting Social Equity Accommodation pursuant to 5.30.90.D.1:
i. Applications requesting Social Equity Accommodation shall be considered in the order in which they are received;
ii. An applicant qualifying as a Social Equity Applicant pursuant to section 5.30.420 shall only be allowed one accommodation listed under section 5.30.90.D.1;
iii. Request for accommodation pursuant to section 5.30.90.D.1.i and iii shall be made at time of submission of application and qualifications for basis for consideration as a Social Equity Applicant under section 5.30.420 shall be made on the cover of the application, and shall be based on the information received at time of Application. A request for technical assistance pursuant to section 5.30.90.D.1.ii may be made prior to submission of application and reviewed for applicability by staff based on criteria in section 5.30.420.
iv. Request pursuant to 5.30.90.D.1.iii shall be available only as to one unissued permit of those identified in section 5.30.130.B.1.

In the event that more than one request for priority based on social equity is made, the first applicant qualifying pursuant to section 5.30.420 shall be given that priority. In the event that the number of permits identified in section 5.30.130.B.1 is increased by future Council action, the next qualified Social Yreka City Council Agenda
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Equity Applicant with an application still in filed shall be given priority for the first available permit in such increased number.

E. Modifications to the Number of Permits.

1. Each year following the City's initial award of permits, if any, or at any time in the City Council's discretion, the City Council may reassess the number of Cannabis Business Permits which are authorized for issuance and make any changes by resolution. Any increase in the number of permits authorized under 5.20.090.C shall only be made by ordinance.

2. The City Council, at its sole discretion, may determine that the number and/or types of Cannabis Business Permits should remain the same or be modified. Any modification in the number or type of permits shall be made only by ordinance of the City Council.

5.30.100 Limitations on City's Liability
To the fullest extent permitted by law, the City of Yreka shall not assume any liability whatsoever with respect to having issued a Cannabis Business Permit pursuant to this Chapter or otherwise approving the operation of any Cannabis Business. As a condition to the approval of any Cannabis Business Permit, the applicant shall be required to meet all of the following conditions prior to receiving the Cannabis Business Permit:

A. Execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold the City of Yreka, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City 's issuance of the Cannabis Business Permit, the City's decision to approve the operation of the Cannabis Business or activity, the process used by the City in making its decision, or the alleged violation of any federal, state or local laws by the Cannabis Business or any of its officers, employees or agents.

B. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate by the City's Risk Manager.

C. Reimburse the City for all costs and expenses, including but not limited to legal fees and court costs, which the City may be required to pay as a result of any legal challenge related to the City's approval of the applicant's Cannabis Business Permit or related to the City's approval of a cannabis Yreka City Council Agenda
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activity. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder.

5.30.110 City's Reservation of Rights
The City reserves the right to reject any or all applications for a Cannabis Business Permit. Prior to permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the Cannabis Business Permit program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to a failure to comply with other requirements in this Chapter, an application may be rejected for any of the following reasons:

A. The application was received after the designated time and date of the deadline.

B. The application did not contain the required elements, exhibits, or was not organized in the required format.

C. The application did not provide all the information required in the permit application (i.e., was substantially incomplete).

D. The applicant did not comply with the requirements of this Chapter.

5.30.120 Cannabis Business Permit Application Procedures.

A. Following the effective date of this chapter, the City Manager, pursuant to Section 5.30.350, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application procedure guidelines for the submission, intake, review, and approval of applications for cannabis operations up to the maximum number of Cannabis Business Permits authorized in Section 5.30.090. Guidelines shall ensure that Applications are considered in the order in which they are received, and that Applications for Social Equity are considered in the order in which those are received. No issuance of a permit shall be made until any application requesting priority for Social Equity Submitted at that time has been evaluated.

B. The procedure guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for Yreka City Council Agenda
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completing applications.

C. At the time of filing, each applicant shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the application process.

D. Only one application shall be reviewed at a time in the order received, and a determination made as to its completeness and validity pursuant to this Chapter.

5.30.130 Cannabis Business Permit Application Process.

A. Application Submission and Processing.

1. The City shall award Cannabis Business Permits on a first-come, firstserved basis, subject to compliance with all applicable laws, regulations, and requirements set forth in this Chapter.

2. The City shall begin accepting applications on a date and time established by the City Manager or their designee, which shall be publicly noticed at least thirty (30) days in advance.

3. Applications shall be deemed received based on the date and time they are submitted in full, including all required documentation and fees, as determined by the City.

4. Incomplete applications will not be considered. If an application is deemed incomplete, the applicant shall be notified and may resubmit, but the resubmission date will be used to determine placement in the queue.

B. Permit Allocation .

1. City shall review applications in the order received. City shall only review an application if a permit is available to be issued. The first three (3) fully completed applications that meet all requirements shall be awarded permits. If a qualified application has been received requesting priority pursuant to section 5.30.90.D.1.iii, it shall be reviewed before any other applications prior to issuance of the permits identified in this paragraph. Such priority shall not apply to award of any permit relinquished or abandoned pursuant to section 5.30.190, unless that permit had been initially issued to an applicant pursuant to section 5.30.90.D.1.iii.

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2. If there are fewer than three (3) qualified applicants, the City may keep any unallocated permits open for additional applications, review the total number of permits that should be issued, or reevaluate the application process as necessary.

3. After the final available permit is issued, all applicants remaining shall be notified that no further permits are available for issuance.

Remaining applicants may choose to keep their application in order received or withdraw their application. If the applicant withdraws their application, the application fee shall be refunded. If the application is not withdrawn, the City will retain the application fee, and applicant shall be responsible for payment of any increase in the application fee within 7 days of notice of their application being considered in the future due to a permit becoming available. Should the payment not be received in a timely manner, the application will be considered withdrawn at that time and the fee held on account shall be returned.

C. Application Review and Final Determination.

1. Applications will be reviewed in the order they are received to confirm compliance with all City requirements, including zoning, public safety, and operational regulations. Such requirements includes this Chapter and Chapter 16.100. City shall only review an application if a permit is available to be issued

2. The City reserves the right to deny any application that does not meet legal requirements, public safety standards, or other conditions established by City ordinance.

3. If an application is denied, the applicant may appeal the decision pursuant to Section 5.30.210.

4. The ultimate number of permits shall not be issued until such time as the period to appeal by all denied applicants has lapsed or until the appeal of all denied applications on appeal is final, and any resultant legal action is resolved as to the number of permits at issue.

D. Application Submittal Requirements.

1. A person may apply for a Cannabis Business Permit by filing an application with the Planning Department. The applicant must be an owner as defined in section 5.30.020. The application must be on a Yreka City Council Agenda
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form approved by the City Manager. The application form must require all information or documentation consistent with the provisions of this chapter and state law, including but not limited to the following:
a. Payment of an application fee established by resolution of the city council to cover all costs incurred by the city in the application process.
b. Name of the applicant and their respective contact
information.
c. If applicable, business trade name, name of corporation, limited liability companies or limited partnership of the applicant as registered with the Secretary of State.
d. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not
limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement.
e. The phone number and address to which notice of action on the application and correspondence is to be mailed.
f. The name, address, verified email, telephone number, title, and function of each of the owners.
g. The name, address, verified email, telephone number, title, and function of each of person responsible for operation of the business to cover 24-hours per day, each day of the year.
h. Business Location.
i. The specific description of the proposed business
location, including the street address, parcel number,
and the total square footage of the site. Prior to
submitting an application, the applicant must also
obtain an approved Zoning Verification Letter from the
City’s Planning Department to ensure the proposed
location meets City zoning requirements, which shall be Yreka City Council Agenda
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attached to the permit application. Such letter issued by the Planning Department shall be submitted by the
Applicant as part of the application. It is solely the
responsibility of the Applicant to Zoning Verification
Letter in a timely manner to include the Zoning
Verification Letter in their application.
ii. A premise diagram of the premises that meets the
requirements of the Department of Cannabis Control
Title 4, Division 19, §15006 Premises Diagram.
iii. Proof of ownership, lease agreement, or a "letter of intent" to lease premises proposed by applicant for
operation of a cannabis business, executed with
notarial acknowledgement, by owner of premises.
iv. If the proposed location will be leased from the property owner, the applicant shall be required to provide a
signed statement from the owner of the property,
acknowledging that the property owner has read this
Chapter and consents to the operation of the Cannabis
Business on the owner’s property.
i. A statement dated and signed by the applicant, under penalty of perjury, that the applicant has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the application has been completed under the applicant’s
supervision.

5.30.140 Exercise of a Cannabis Business Permit
A Cannabis Business Permit shall be exercised within twelve (12) months of receiving a permit. A Cannabis Business Permit shall be considered exercised when the permittee is operational for and lawfully conducting business under the permit.

A. If the permittee fails to exercise a Cannabis Business Permit within the timeframe established in Section 5.30.140(A), the City may revoke the permit and reallocate it to the next qualified applicant in the queue.

B. The City Manager, in their sole discretion, may extend the timeframe established in Section 5.30.140(A) for up to a maximum of six months, if they determine that the applicant has made a good faith effort to exercise the Yreka City Council Agenda
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Cannabis Business Permit within the defined timeframe.

C. A Permittee whose permit is revoked by the City Council must reapply through the standard application process and will not receive priority based on prior approval.

5.30.150 Abandonment of Permit
If the Cannabis Business has not been in regular and continuous operation in the preceding four (4) months at the permitted location, the Cannabis Business Permit shall be considered abandoned, unless mitigating circumstance occur which was beyond the control of the permittee and an extension has been authorized by the City Manager. For purposes of this section, failure to be open for business at least 10% of the days within the preceding four month period shall be evidence of failing to be in regular and continuous operation.

5.30.160 RESERVED

5.30.170 Term of a Cannabis Business Permit
All permits issued under the provisions of this chapter shall be effective for a period not to exceed one (1) year from the date of issuance. The City Manager may renew a permit through the procedures identified in Section 5.30.180 of this Code.

5.30.180 Renewal of Cannabis Business Permits
A. An application for renewal of a Cannabis Business Permit shall be filed by the Cannabis Business Permittee at least thirty (30) calendar days prior to the expiration date of the current permit.

B. The City Manager, in their sole discretion, may extend the renewal period for up to a maximum of thirty (30) days, if the Permittee was operating in good standing as of the renewal deadline specified in Section 5.30.180(A).

C. Each application for renewal shall include updated information for any part of the application that has undergone a change in circumstance since the original application or last renewal filing and shall recertify all information submitted in prior application(s).

D. The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter.

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E. An application for renewal of a Cannabis Business Permit may be rejected if any of the following exists:

1. The application is filed less than thirty (30) days before its expiration or a shorter time period which shall be at the discretion of the City Manager.

2. The Cannabis Business Permit is suspended or revoked at the time of the renewal application.

3. The Cannabis Business has not been in regular and continuous operation in the four (4) months prior to the renewal application or the approved extension of the deadline from the City Manager.

4. The Department receives an application showing any change in ownership without having followed the transfer procedure as specified in section 5.30.230.

5. The Cannabis Business has failed to conform to the requirements of the Cannabis Business Permit or this Chapter or any regulations adopted pursuant to this Chapter.

6. The permittee has unpaid fees or fines issued by the City.

7. The permittee fails or is unable to renew its State of California license.

8. If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the Cannabis Business Permit.

F. The City Manager is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety, or welfare. Appeals from the decision of the City Manager shall be handled pursuant to this Chapter.

5.30.190 Suspension, Revocation, or Modification of Permits A. Cannabis Business Permits may be suspended, revoked, or modified for any violation of this Chapter, any state or local laws, rules, and/or any standards, policies, procedures, or regulations adopted pursuant to this Chapter relating Yreka City Council Agenda
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to Cannabis Businesses.

B. When there is determined to be an imminent threat to public health, safety or welfare, the City Manager may take immediate action to temporarily suspend a cannabis permit issued by the City.

C. A decision of the City to suspend, revoke or modify a Cannabis Permit is appealable as set forth in this Chapter.

5.30.200 Effect of State License Suspension, Revocation, or Termination A. Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the Cannabis Business Permit of the Cannabis Business. A permitee may not operate under a permit while it is suspended.

B. If the State of California or its respective department or division reinstates or reissues the State license, the Cannabis Business may seek reinstatement of its Cannabis Business Permit if the business can demonstrate that the grounds for revocation of the license by the state no longer exist or that the underlying deficiency has otherwise been cured.

C. The Cannabis Business Permittee subject to suspension shall inform the City of any suspension of a state license within ten (10) days of the suspension.

Failure to properly notify the City may be grounds for revocation.

D. Revocation or termination of a license issued by the State of California, or by any of its departments or divisions, shall immediately revoke or terminate the Cannabis Business Permit of the Cannabis Business.

E. The Cannabis Business Permittee subject to revocation or termination shall inform the City of any revocation or termination of a state license within ten (10) days of the revocation or termination.

F. A Cannabis Business Permittee may appeal the immediate revocation or termination of the Cannabis Business Permit pursuant to Section 5.30.210 but may not operate pending the decision of the appeal.

5.30.210 Appeals
A. Appeals of the City Manager decision regarding any of the following shall be appealable to the city council: (1) denial of advancement to submit a cannabis business permit application; (2) revocation or suspension of a permit; (3) Yreka City Council Agenda
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denial of renewal of an application for a permit; or (4) additions of conditions to a permit. Any decisions of the city council pursuant to this chapter are final and conclusive.

B. Within 10 calendar days after the date of a decision of the city manager to revoke, suspend or deny an initial or renewed permit application or to add conditions to a permit, an applicant or permittee may appeal such action by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper.

C. The written appeal shall be in writing and signed by the person making the appeal (“appellant”), or their legal representative, and shall contain the following:

1. Name, address, and telephone number of the appellant.

2. Specify decisions, actions, or a particular part thereof, made that are the subject of the appeal.

3. Include a true and correct copy of the decision issued by the city manager for which the appellant is appealing.

4. State with specificity the reasons and grounds for making the appeal, including, but not limited to, a statement of facts upon which the written appeal is based in sufficient detail to enable the city council to understand the nature of the controversy, the basis of the written appeal, and the relief requested.

5. All documents or other evidence pertinent to the written appeal that the appellant requests the city council to consider at the hearing.

6. Payment of the fee as established by resolution of the city council for such appeals.

D. Upon receipt by the city clerk of a timely filed written appeal, the city clerk shall forward such appeal to the city council, and shall schedule a hearing within thirty (30) days, or as soon thereafter as is available, and shall notify the appellant of the date, time and location of the hearing.

E. Appellant and the City may mutually agree to a hearing date scheduled outside the thirty (30) day period as long as both parties have agreed to this date in writing.

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F. The City Council shall hear and consider the testimony of the appellant, the city manager, and/or their witnesses, as well as any documentary evidence properly submitted for consideration. The following rules shall apply at the appeal hearing:

1. Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, collateral, undue, and repetitious testimony may be excluded.

2. The City Manager bears the burden of proof to establish the grounds for the nonrenewal, suspension or revocation of a permit by a preponderance of evidence. Appellant bears the burden of proof regarding why they should have been allowed to apply for a cannabis business permit.

3. The issuance of the City Manager’s decision constitutes prima facie evidence of grounds for the denial, nonrenewal, suspension or revocation.

4. The City Council may accept and consider late evidence not submitted initially with the decision of appeal upon a showing of good cause. The City Council shall determine whether a particular fact or set of facts amount to good cause on a case-by-case basis.

5. The appellant may bring a language interpreter to the hearing at their sole expense.

6. The City may, at its discretion, record the hearing by stenographer or court reporter, audio recording, or video recording. If the appellant requests from the City that a court reporter, stenographer, or videographer be used, appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.

7. If the appellant, or their legal representative, fails to appear at the appeal hearing, the City Council may cancel the appeal hearing and send a notice thereof to the appellant by certified, first-class mail to the address(es) stated on the notice of appeal. The cancellation of a hearing due to nonappearance of the appellant shall constitute the appellant’s waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the city manager’s decision is final and binding.

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G. Following the conclusion of the City Council hearing, the City Council shall issue a written decision within thirty (30) days that determines if the action appealed from is affirmed, modified, or overturned and specifies the reasons for the decision. The written decision of the City Council shall provide that it is final and conclusive and is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6 for judicial review. A copy of the written decision shall be served by certified, first-class mail on the appellant. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the City pursuant to this Chapter.

H. Failure of the City Clerk to receive a timely appeal constitutes a waiver of the right to appeal the decision issued by the City Manager. In this event, the City Manager’s decision shall be final.

I. In the event a written appeal is timely filed, the nonrenewal, suspension, or revocation of a permit shall not become effective until a final decision has been rendered and issued by the city council. Notices of appeal not served in a timely manner or served by a nonoperational business shall not serve to allow such business to operate pending appeal.

J. If no appeal is timely filed in the event of a decision of nonrenewal, the cannabis business’s permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision supporting suspension or revocation, the suspension or revocation shall become effective upon the expiration of the period for filing a written notice of appeal.

5.30.220 Change in location
A. The location listed on the regulatory permit issued by the city is the only location from which business may be conducted within the city, Notwithstanding the foregoing or anything to the contrary in this chapter, “conducting business” shall not be interpreted to mean the exchange of products being delivered at the site of a customer within the City where such delivery is being made by a delivery service with a valid and properly issued City regulatory permit allowing such delivery.

B. If at any time, the business location from which business is being conducted as specified in the regulatory permit is conducted from another location, the permittee shall submit an updated application form to the City Manager for approval prior to the change in location.

C. The request for approval of a change of location must be made, and must be granted by the City Manager before the change of location or before the business may conduct business from a different location that what is stated Yreka City Council Agenda
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on the current permit. .

D. Failure to obtain a change of location pursuant to 5.30.220.C prior to engaging in business operations at another location shall be a forfeiture of an issued permit. The City Council shall have not ability to excuse an operator for operating at another location prior to obtaining a change of location pursuant to 5.20.220.C. The only issue for review by the City Council for appeal of determination by City Manager of such decision is whether the permittee was in fact not conducting business at another location prior to obtaining written approval by the City Manager authorizing the requested change of location.

E. Each permit is valid only at the single location described on the permit. A permittee may not conduct business from a prior location not listed on a current permit but listed on a previous permit without a change of location being approved back to the former location under this process.

F. Failure to operate a business at a single location shall be grounds for immediate termination.

G. A permittee may not conduct business from multiple locations on a single permit. Council may not issue a single permit that has multiple locations without amending this Chapter by ordinance. Council may not amend and existing permit to include an additional location to create a single permit with multiple locations without amending this Chapter by ordinance. Council may not issue multiple permits of the same type at a single location without amending this Chapter by ordinance.

H. The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the updated application form.

5.30.230 Updated Application Form
A. Besides premises location information for a current issued permit, a party shall within fifteen (15) calendar days of any change in the information provided in the application, an issued permit, an updated application form or any change in status of compliance with the provisions of this Chapter, including any change in the Cannabis Business ownership or management members, the applicant shall file an updated application form with the City Manager for review along with an application amendment fee. The time period listed in this subsection does not apply to a change in information relating to change of location of business operations from the location listed on the current regulatory permit, which must be provided prior to change of location; the permission to operate from a different location shall be obtained prior to change of operation as required under 5.30.220.C.

B. For purposes of this section, the first day of time period indicated above shall be on the first full calendar day on which the change of information or change in status exists. The fifteenth day shall conclude at the close of business of the Office of the City Clerk for that day. In the event that such final day falls on Yreka City Council Agenda
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a date on which the Office of the City Clerk is closed, due to weekend or legal holiday, or should the Office of the City Clerk not be open for any other reason through its normally established operating closing time., the deadline shall be extended through noon of the next business day which the Office of the City Clerk is open.

C. Failure to provide such information or failure to adhere to the time frames provided herein shall constitute a withdrawal of a pending application, and abandonment of existing permit. Upon determination that such situation exists, the City Manager shall take action to prosecute appropriate process to complete amendment of status of the application or permit. Neither the City Manager nor the City Council shall have the ability to excuse an operator, permittee, applicant or any other person for failing to timely comply with the timeframe expressed herein for any reason without amendment of this ordinance.

5.30.240 Transfer of Cannabis Business Permit
A. No request for transfer of ownership shall be granted prior to twenty-four (24) months after the permittee has opened and continuously operated its Commercial Cannabis Business where such ownership interest being transferred is based on that person having an aggregate ownership interest of 20 percent or more in the cannabis business.

B. The owner of a Cannabis Business Permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager stating that the transferee is now the permittee.

1. Such an amendment may be obtained only if the transferee files an application with the City Manager in accordance with the provisions of this Chapter (as though the transferee were applying for an original Cannabis Business Permit).

2. The proposed transferee's application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee).

3. For purposes of determining applicability of a transferee to assume an existing permit, the transferee's application will be reviewed based on the standard for a new application and will be evaluated according to standards under this Chapter and those procedures adopted pursuant to Section 5.30.120.

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City Manager shall be valid for the remainder of the term of the permit, until the date of required permit renewal, beginning on the day the City Manager approves the transfer of the permit.

D. Before the transferee's permit expires, the transferee must apply for a renewal permit and pay the appropriate fee in the manner required by this Chapter.

E. A Cannabis Business Permit shall not be transferred when the City has notified the permittee in writing that the permit has been or may be suspended or revoked.

F. Any attempt to transfer a Cannabis Business Permit either directly or indirectly in violation of this section is hereby declared a violation of the permit and this Chapter. Such a purported transfer shall be deemed grounds for revocation of the permit.

5.30.250 City Business Tax Certificate
Prior to commencing operations, a Cannabis Business shall obtain a City of Yreka Business License pursuant to Chapter 5.04 of the Yreka Municipal Code.

5.30.260 Building Permits and Inspection
Prior to commencing operations, a Cannabis Business permittee shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes, but is not limited to, obtaining any required building permit(s), Fire Department approvals, Police Department approval, Code Enforcement; Planning, and Health Department approvals, and any other applicable zoning and land use permit(s) and approvals.

5.30.270 Right to Occupy and to Use Property
Prior to the City's issuance of a Cannabis Business Permit pursuant to this Chapter, any person intending to open and to operate a Cannabis Business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location. If the proposed location will be leased from the property owner(s), the applicant shall be required to provide a signed and notarized statement from the owner(s) of the property, acknowledging that the property owner has read this Chapter and consents to the operation of the Cannabis Business on the owner's property.

5.30.280 Location and Design of Cannabis Businesses
A. For zoning and land use purposes, Medicinal Non-Storefront Retailer Yreka City Council Agenda
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businesses shall be considered a “Retail Use" and shall be permitted in any zoning district where general retail uses are allowed.

B. Cannabis Businesses shall not be permitted as a home occupation under any circumstances.

C. A Cannabis Business must meet land use and building standards pursuant to Title 16 of this Code, including:

1. Conform with the City's general plan, any applicable specific plan, master plan, and design requirements.

2. Comply with all applicable zoning and related development standards.

3. Be constructed in a manner that minimizes odors to surrounding uses.

D. A Cannabis Business must meet the following rules relating to proximity to sensitive uses:

1. The use shall be no closer than six hundred (600) feet from any parcel in the City designated as a sensitive use under this Section that is in existence at the time the permit is issued.

2. The distance shall be determined by the horizontal distance measured in a straight line from the closest property line of the sensitive use to the closest property line of the lot on which the Cannabis Business is to be located, without regard to intervening structures.

3. Sensitive uses include:
a. A school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including preschool, transitional kindergarten, and K-12). b. A commercial daycare center licensed by the State, County or City.
c. A Youth Center .

5.30.290 Authorization from the City Manager
Prior to commencing operations, a Cannabis Business must obtain authorization from the City Manager certifying that the business is located on a site that meets all of the requirements of Sections 5.30.250 through 5.30.290, and 5.30.310 through

5.30.360 of this Code.

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5.30.300 Records and Recordkeeping
A. Each owner and operator of a Cannabis Business shall maintain accurate books and records in an accessible, electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities for a period not less than seven (7) years.

B. On no less than an annual basis (at or before the time of the renewal of a Cannabis Business Permit issued pursuant to this Chapter), or at any time upon reasonable request of the City, each Cannabis Business shall file a sworn statement detailing the number and amount of sales by the Cannabis Business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and/or fees paid or due to be paid.

C. On an annual basis, each owner and operator shall submit to the City a financial audit of the business's operations conducted by an independent certified public accountant paid for by permitee. Each permittee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the City.

D. Each owner and operator of a Cannabis Business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the Cannabis Business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the Cannabis Business. The register required by this paragraph shall be provided to the City Manager upon request within forty-eight (48) hours of the request.

E. All Cannabis Businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the production process until purchased as set forth in the MAUCRSA.

5.30.310 Security Measures
A. Cannabis businesses shall operate in a manner that minimizes public visibility and does not draw unnecessary attention to the nature of the business.

B. A Cannabis Business permittee shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing Yreka City Council Agenda
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cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the Cannabis Business. Except as may otherwise be determined by the City Manager, these security measures shall include, but shall not be limited to, all of the following:

1. Exterior lighting systems for after-hours security as approved by the Chief of Police and/or the City Manager where applicable.

2. Preventing individuals from remaining on the premises of the Cannabis Business if they are not engaging in an activity directly related to the permitted operations of the Cannabis Business. In cases in which the individual will not voluntarily leave the premises, the cannabis employee shall contact the Police Department.

3. Establishing limited access areas accessible only to authorized Cannabis Business personnel.

4. Each Cannabis Business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees.

5. Installation of Cameras that meet the following:
a. 24-hour security surveillance cameras of at least highdefinition (HD) quality to monitor all entrances and exits to and from the premises, all interior spaces within the Cannabis Business which are open and accessible to the public, all interior spaces where cannabis, cash, or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur.

All cameras shall record in color.
b. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions.
c. Video recordings shall be maintained for a minimum of ninety (90) days and shall be made available to the Chief of Police upon request.
d. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the Cannabis Business and shall be capable of enlargement via projection or other means.
e. Internet Protocol address information shall be provided to the Yreka City Council Agenda
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Police Department by the Cannabis Business, to facilitate remote monitoring of security cameras by the Department or its designee.
f. Each business shall have network security protocols that are certified by Underwriters Laboratories.

6. A professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services is required.

7. Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.

8. Panic buttons shall be installed in all Cannabis Businesses with direct notification to the Police Department dispatch and shall be configured to immediately alert dispatch for the Police Department.

9. Any security measures, such as bars, installed on the windows or the doors of the Cannabis Business shall be installed only on the interior of the building and shall not be visible from the public right-of-way.

10.Security personnel shall be on-site during business hours. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, with such approval not to be unreasonably withheld.

11.Each Cannabis Business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

12.Each Cannabis Business shall implement an accounting software system that provides point-of-sale data and audit trails for both products and cash transactions, where applicable.

13.Each Cannabis Business shall demonstrate to the City Manager or their designees, compliance with the state's track and trace system for cannabis and cannabis products.

14.Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the Yreka City Council Agenda
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premises.

15.Emergency access and emergency evacuation plans that are in compliance with state and local fire safety standards shall be maintained to State standards and readily available to all employees onsite.

C. Security Representative/Liaison

1. Each Cannabis Business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures and/or operational issues.

2. The security representative/liaison shall be capable of operating the Cannabis Business security surveillance system and providing video recordings to the Police Department upon request, pursuant to Section

5.30.310(A)(4) of this Code.

3. The designated security representative/liaison shall, on behalf of the Cannabis Business, annually maintain a copy of the current security plan on the premises of the business, to present to the City Manager upon request that meets the following requirements:
a. Confirms that a designated manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.
b. Identifies all managers of the Cannabis Business and their contact phone numbers.
c. Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the
manager's office.
d. Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.
e. Identifies a sufficient number of licensed, interior, and exterior security personnel who will monitor individuals inside and outside the Cannabis Business, the parking lot, any adjacent Yreka City Council Agenda
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property under the business' control, and ensure that the parking lot is cleared of employees and their vehicles one-half hour after closing.

D. As part of the application and licensing process each Cannabis Business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.

E. The Cannabis Business shall cooperate with the City whenever the City Manager makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter.

F. A Cannabis Business shall notify the City Manager within twenty-four (24) hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

2. Diversion, theft, loss, or any criminal activity involving the Cannabis Business or any agent or employee of the Cannabis Business. a. The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the Cannabis Business.
b. Any other breach of security.

G. Compliance with the foregoing requirements shall be verified by the City Manager prior to commencing business operations. The City Manager may supplement these security requirements once operations begin, subject to review by the City Manager if requested by the business owner.

5.30.320 General Operating Requirements
A. Cannabis Businesses shall operate in compliance with Division 10 of the Business and Professions Code, as may be amended under State law.

B. Cannabis Businesses may operate only during the hours specified in the Section 5.30.330(C).

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C. Restriction on Sales and Consumption. Cannabis shall not be consumed by any person on the premises of any Cannabis Business. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the Cannabis Business.

D. No outdoor storage of cannabis or cannabis products is permitted at any time.

E. Reporting and Tracking of Product and of Gross Sales. Each Cannabis Business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the Cannabis Business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale). The Cannabis Business shall provide this information to the City upon request, in the format defined by the City. In addition, the system must have the capability to produce historical transactional data for review.

F. All cannabis and cannabis products sold, distributed, or held shall be cultivated, manufactured, and transported by state licensed facilities that maintain operations in full conformance with the State and local regulations.

G. Emergency Contact. Each Cannabis Business shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an employee or owner to whom emergency notice can be provided at any hour of the day.

H. Signage and Notices.

1. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a Cannabis Business Permit, or on any of the vehicles owned or used as part of the Cannabis Business.

2. In addition to the requirements otherwise set forth in this section, business identification signage for a Cannabis Business shall conform to the requirements Title 13 Signs and are required to obtain all sign permits as required.

3. Each entrance to a Cannabis Business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the Cannabis Business is prohibited.

I. Minors.

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1. Persons under the age of twenty-one (21) years shall not be allowed on the premises of a Cannabis Business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a Cannabis Business who is not at least twenty-one (21) years of age.

2. The entrance to the Cannabis Business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the Cannabis Business.

J. Odor Control.

1. Odor control devices and techniques shall be incorporated in all Cannabis Businesses to ensure that odors from cannabis are not detectable off-site.
a. Cannabis Businesses shall provide a sufficient odor
absorbing ventilation and exhaust system so that odor
generated inside the Cannabis Business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways,
breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the Cannabis Business.
b. Cannabis Businesses must install and maintain the following equipment, or any other equipment which the City Manager or their designee(s) determine is a more effective method or technology:
i. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
ii. An air system that creates negative air pressure
between the Cannabis Business's interior and exterior,
so that the odors generated inside the Cannabis
Business are not detectable on the outside of the
Cannabis Business.

K. Display of Permit and City Business Tax Certificate. The original copy of the Yreka City Council Agenda
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Cannabis Business Permit issued by the City pursuant to this Chapter and the City issued Business Tax Certificate shall be posted inside the Cannabis Business in a location readily visible to the public.

L. Loitering.

1. The owner and/or operator of a Cannabis Business shall prohibit loitering by persons outside the facility on the premises.

2. The Cannabis Business shall notify the Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner.

M. Permits and other Approvals. Prior to the establishment of any Cannabis Business or the operation of any such business, the person intending to establish a Cannabis Business must first obtain all applicable planning entitlements, building permits, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such Cannabis Business intends to establish and to operate pursuant to Section 5.30.280 and all applicable requirements in this Chapter.

5.30.330 Medicinal Non-Storefront Retailer (Delivery Only) Requirements.

A. Medicinal Non-Storefront Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen (18) years and shall confirm the customer's possession of a valid doctor's recommendation and/or Health and Safety Code Section 11362.71 identification card (Medical Marijuana Card).

B. Prior to providing medicinal cannabis goods to a delivery customer, operators are required to verify the age and the necessary documentation of each customer. They must ensure that medicinal cannabis customers are at least eighteen (18) years of age and verify that the customer has a valid doctor's recommendation. Sales shall only be made to persons matching these criteria.

C. Retail delivery services shall be limited to the hours of 8:00 a.m. through 9:00 p.m., seven days a week.

D. Prior to commencing delivery operations, a Medicinal Non-Storefront Retailer shall provide the following information to the City:

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1. Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

2. The year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

3. Proof of insurance as required in Section 5.30.290B) for any and all vehicles being used to deliver cannabis goods.

4. The permittee shall provide the City with the information required by this section in writing for any new vehicle that will be used to deliver cannabis goods prior to using the vehicle to deliver cannabis goods.

5. The permittee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days.

E. Permissible Delivery Locations and Customers.

1. A permitted Cannabis Business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

2. A permitted Cannabis Business shall comply with all requirements of state and local law pertaining to the Cannabis Business Permit and all subsequent policies, procedures and regulations which may be amended by the City Manager from time to in order to enforce this Chapter.

3. A permitted Cannabis Business shall only deliver to legally existing residential structure with a valid address recognized by the United States Postal Service.

F. Authorized Sales.

1. A Medicinal Non-Storefront Retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least 18 years of age, if those individuals are in possession of a valid physician's recommendation.

G. Limited Access Areas.

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1. A Medicinal Non-Storefront Retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas.

2. Authorized individuals include individuals employed by the Medicinal Non-Storefront Retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area.

3. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the Medicinal NonStorefront Retailer, shall be escorted at all times by an employee of the permittee.

4. A Medicinal Non-Storefront Retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager, Chief of Police, or their designees upon request.

5. No more than the number of Medicinal Non-Storefront Retailer adopted by Council resolution may operate within the City at any one time and shall be issued a permit by the City.

H. Medicinal Non-Storefront Retailer authorized to conduct retail activities shall only serve customers who are at a delivery address that meets the requirements of this Chapter.

5.30.340 [Reserved]

5.30.350 Promulgation of Regulations, Standards and Other Legal Duties A. In addition to any regulations adopted by the City Council, the City Manager is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of Cannabis Businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter.

B. Such regulations shall be published on the City's website.

C. Regulations promulgated by the City Manager shall become effective upon the date of publication. Cannabis Businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.

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5.30.360 Fees and Charges
A. No person may commence or continue any cannabis activity in the City, without timely paying in full all fees and charges required for the operation of a Cannabis Business. Fees and charges associated with the operation of a cannabis activity shall be established by resolution of the City Council which may be amended at the council’s discretion.

B. All Cannabis Businesses authorized to operate under this Chapter shall pay all sales, use, business and other applicable taxes, and all license, permit, registration, and other fees required under federal, state, and local law. Each Cannabis Business shall cooperate with the City with respect to any request to audit the Cannabis Business' books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes or fees required to be paid during any period.

5.30.370 Fees Deemed Debt to the City
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable via an authorized administrative process as set forth in the City ordinance or in any court of competent jurisdiction.

5.30.380 Permit Holder Responsible for Violations
The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the Cannabis Business whether or not said violations occur within the permit holder's presence.

5.30.390 Inspection and Enforcement
A. The City Manager who is charged with enforcing the provisions of the City of Yreka Municipal Code, or any provision thereof, may enter the location of a Cannabis Business at any time, without notice, and inspect the location of any Cannabis Business as well as any recordings and records which may include access to Point-of-Sale and/or METRC data required to be maintained pursuant to this Chapter or under applicable provisions of State law.

B. It is unlawful for any person having responsibility over the operation of a Cannabis Business, to impede, obstruct, interfere with, or otherwise not to allow the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a Cannabis Business under this Chapter or under state or local law. It is also unlawful for a person to Yreka City Council Agenda
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conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a Cannabis Business under this Chapter or under state or local law.

C. The City Manager, who is charged with enforcing the provisions of this Chapter may enter the location of a Cannabis Business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of Yreka shall be logged, recorded, and maintained in accordance with established procedures by the City of Yreka's City Manager or these regulations.

5.30.400 Violations Declared a Public Nuisance
Each and every violation of the provisions of this Chapter constitutes a misdemeanor and is hereby deemed unlawful and a public nuisance. The City reserves the right to pursue any available legal remedy to address violations of this Chapter.

5.30.410 No Vested Rights
No person(s) (including any Applicant, Owner, and/or Permittee) shall have any vested rights to any permit, right, and/or interest under this chapter, regardless of whether such person(s) sold, distributed, and/or otherwise engaged in acts related to the use of Cannabis prior to the adoption of the ordinance codified in this Chapter.

5.30.420 Social Equity Applicant Eligibility.

A. To be eligible as an equity applicant, an individual shall satisfy the following criteria:

1. The applicant or their immediate family member (parent, sibling, spouse, or child), was arrested for, convicted of, or adjudged to be a ward of the juvenile court for a cannabis-related offense under the laws of California or any other jurisdiction prior to November 8, 2016.

2. In the last year, have had a household income at or below sixty percent (60%) of the Siskiyou County Area Median Income (AMI) adjusted for family size or you’re eligible to get financial aid through a program like:
a. CalFresh
b. MediCal
c. CalWORKS
d. Supplemental security income
e. Social Security disability
B. To be eligible for a Cannabis Business Permit as an Equity Applicant, at least Yreka City Council Agenda
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fifty percent (50%) of the business must be owned by individuals who meet the Equity Applicant eligibility criteria outlined in Section 5.30.420(A).

SECTION 3. Chapter 16.100 of the Yreka Municipal Code is deleted in its entirety and replaced with the following:

16.100.10- Medical marijuana distribution facilities.

Medical marijuana distribution facilities, as defined in Chapter 9.25, are prohibited uses in all zoning districts in the city of Yreka. (Ord. No. 817, § 2, 10-6-2011)

16.100.10 Cannabis facility regulation
A. Definitions
a. All definitions in section 5.30.020 shall apply in this chapter as if stated herein.

B. Allowed uses:
a. Medicinal non-storefront retailer (delivery only)
C. Allowed Zones:
a. C2, CH, and M1 zones only, not within any historic district D. Prohibited uses:
a. All other commercial cannabis activity.
b. Medicinal non-storefront retailer (delivery only), outside of C2, CH, and M1 zones, or within any historic district regardless of zoning.

E. Regulation of allowed uses:
a. All commercial cannabis activity shall comply with regulations set in Chapter 5.30 “Cannabis Business Activities”
b. All commercial cannabis activity shall comply with regulations set in Chapter 16.46 regarding outdoor lighting, fencing and height limits.
c. Prefabricated exterior storage containers or truck trailers shall not be permitted for cannabis business activities.

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SECTION 5. Chapter 9.25 of the Yreka Municipal Code is amended to read as follows, with all other portions remaining unchanged:

9.25.020 - Operation of medical marijuana distribution facilities prohibited.

Except as allowed pursuant to Chapter 5.30 concerning "Medicinal non-storefront retailer (delivery only)", mMedical marijuana distribution facilities, as defined in this chapter, are prohibited uses in the city of Yreka.
[ADD EDITS CHANGING ALL INSTANCES OF MARIJUANA TO CANNABIS IN CHAPTER 9.25 IN FINAL VERSION]
SECTION 6. Chapter 9.26 of the Yreka Municipal Code is amended to read as follows, with all other portions remaining unchanged:

Chapter 9.26 - MEDICAL CANNABIS MARIJUANA CULTIVATION, DISTRIBUTION

AND DELIVERY PROHIBITED
…
ARTICLE 2 - DEFINITIONS

9.26.200 - Definitions.

Except where the context otherwise requires, the following definitions shall govern the construction of this chapter:
…
T. "Medicinal non-storefront retailer (delivery only)" be as defined in section

5.30.020.

ARTICLE 3 - RESTRICTIONS AND REQUIREMENTS

9.26.300 - Cultivation, processing, dispensaries and delivery prohibited. …
C. Except as allowed pursuant to Chapter 5.30 concerning "Medicinal nonstorefront retailer (delivery only)", no No person and/or entity may deliver or transport medical cannabis marijuana from any fixed or mobile location, either inside or outside the city, to any person in the city except where this chapter is preempted by federal or state law from enacting a prohibition on any such activity. [ADD EDITS CHANGING ALL INSTANCES OF MARIJUANA TO CANNABIS IN CHAPTER 9.26 IN FINAL VERSION]
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SECTION 7. The mayor shall sign this ordinance and the city clerk shall attest and certify to the passage and adoption of it, and within fifteen (15) days, publish in the Yreka Courier, a weekly newspaper of general circulation, printed, published, and circulated in the City of Yreka and thirty (30) days thereafter it shall take effect and be in force.

PASSED, APPROVED, AND ADOPTED this _____ day of October, 2025.

________________________________
Colleen Baker, Mayor, City of Yreka
ATTEST:
________________________________
Cynthia Prohaska, City Clerk, City of Yreka
APPROVED AS TO FORM:
________________________________
Andrew L. Jared, City Attorney, City of Yreka
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Yreka City CouncilSeptember 16, 2025

Yreka City Council
September 16, 2025