Agenda — Yreka City Council, June 16, 2026

Colleen Baker, Mayor
James Clair, Mayor Pro Tempore
Corey Middleton, Councilmember
Drake Davis, Councilmember
Paul McCoy, Councilmember
William Ibershof, City Manager
Juliana Lucchesi, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Cyndy Prohaska, City Clerk
Patrick Dirksen, Interim Police Chief
Jerry Lemos, Fire Chief
Julia Homaechevarria, City Attorney

YREKA CITY COUNCIL MEETING AGENDA
June 16, 2026
Closed Session: 5:30 PM
Regular Session: 6:30 PM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA Phone 530-841-2386, Facsimile 530-842-4836, email: [email protected] Regular Meetings of the Yreka City Council are held the 1st and 3rd Tuesday of every month.

The full agenda packet can be found on the City’s website at www.yrekaca.gov/AgendaCenter. Copies of all staff reports and documents subject to disclosure that relate to any item of business referred to on the agenda are available for public inspection 72 hours before each regularly scheduled meeting, and 24 hours before each special meeting, at the City Clerk’s office at City Hall, located at 701 4th St, Yreka, California during normal business hours. Any writing that is subject to disclosure that relates to an agenda item for open session distributed less than 72 hours prior to the meeting will be available for public inspection at the City Clerk’s office during normal business hours.

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

Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to Government Code section 54953(f), remote public comment will not be accepted. Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. to the City Clerk prior to the meeting or to attend the meeting in person." Written comments will be distributed to the Councilmembers but will not be read aloud at the meeting.

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

2. PUBLIC COMMENT ON CLOSED SESSION ITEMS:

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

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

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

This meeting is being livestreamed and can be viewed on Siskiyou Media Council’s YouTube Channel https://www.youtube.com/channel/UCzx2GSYFCrgE5przvnzitXQ Yreka City Council Agenda
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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. • 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 Section §54956.8) -Property APNs:
041-020-130
041-030-200
004-340-020
004-340-010
414E2400
414E2401
-Agency Negotiator: Assistant City Manager, Juliana Lucchesi -Negotiating Parties: PacifiCorp

4. 6:30PM CALL TO ORDER REGULAR SESSION, PLEDGE OF ALLEGIANCE, AND REPORT OUT FROM CLOSD SESSION:

5. ROLL CALL:

6. APPROVAL OF THE AGENDA:

7. PRESENTATIONS:
 Retirement Tribute to Chief Mark Gilman – John Elsnab and Lieutenant Tygart

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 Yreka City Council Agenda
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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 May 25, 2026, through June 6, 2026. b. Treasurer’s Report for February 2026.
c. Approval of the Minutes of the Regular Meeting held June 2, 2026. d. Second Reading and Approval of Ordinance 889, “An Ordinance of the City Council of the City of Yreka, California, Amending Chapter 12.04 of the Yreka Municipal Code Regarding Water Service Accounts, Billing Responsibility and Collection Procedures; Finding Action Exempt from CEQA (Guidelines §§15061(B)(3) and 15378.
e. Adoption of Resolution 2026-19 of the City Council of the City of Yreka Approving the Destruction of Certain City Records Identified by the Finance Director. f. Motion to Authorize the City Manager, or their designee, to complete, sign, and file all necessary documents to close-out of CDBG Grant No. 22-CDBG-ED-30045 and dis-encumbrance of $340,767.62 to the California Department of Housing and Community Development. g. Authorize the Mayor to sign the Letter of Support to the California Department of Housing and Community Development in connection with the HomeMore Project’s application to the Encampment Resolution Funding (ERF) Program, Round 5.
h. Adopt Resolution 2026-20 of the City Council of the City of Yreka Approving a list of Projects for Fiscal Year 2026-27 Funded by SB1: The Road Repair and Accountability Act. i. Adopt Resolution 2026-21 of the City Council of the City of Yreka Updating the Signatory of the “California Climate Investments Wildfire Prevention Grants Program” Yreka City Council Agenda
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Recommended City Council Action: Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented.

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

11. CITY BUSINESS:

Human Resources Director and City Attorney
a.Agenda Title: Discussion/Possible action on Approving a Resolution Proposing an Increase of the Unform Transient Occupancy Tax (Hotel Tax) of the City of Yreka to be submitted to the voters for approval.

Recommended City Council Action: Motion to Approve Resolution 2026-22 of the City Council of the City of Yreka (1) on its own motion, the submission to the Electors of the City of Yreka at the November General Election, a Ballot Measure proposal to Amend Sections 3.12.030 and add Section 3.12.140 of the City of Yreka Municipal Code to Increase the Unform Transient Occupancy Tax (Hotel Tax) from ten percent (10%) to Twelve Percent (12%) (2) Directing the City Attorney to Prepare an Impartial Analysis of the Measure; and (3) City Council Authorizes Councilmember Clair and Councilmember McCoy to Author and Submit a Ballot Measure Argument in Favor of the Ballot Measure.

Assistant City Manager
b.Agenda Title: Discussion on Mobile Home Rent Stabilization Ordinance Recommended City Council Action: Provide direction to City Staff on the Mobile Home Space Rent Stabilization Ordinance.

Mayor Baker
c.Agenda Title: Discussion / Possible Action on Cancelling the July 7, 2026, Regular City Council Meeting.

Recommended City Council Action: Motion to cancel the July 7, 2026, Regular City Council Meeting. f. CITY MANAGER/STAFF REPORTS:

City Manager and Staff may make brief announcements or reports at this time. g. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

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

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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 June 16, 2026 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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Fund Type Fund Fund Description Previous Balance Debits Credits Fund General-Unrestricted 01 General Operating $ 8,102,529.42 $ 966,674.26 $ 869,335.98 $ 8,199,867.70 General-Designated 01 General Oper. - Other - - - 0.00
General-Designated 01 Comm Art - - - 0.00
General-Designated 01 Fire Museum 3,322.35 - - 3,322.35 General-Designated 01 Planning Deposits - - - 0.00
General-Designated 01 Sidewalk in Lieu 62,057.71 - - 62,057.71 General-Designated 01 Parkland Trust 300.00 - - 300.00
General-Designated 01 Police Asset Forfeit 24,698.09 - - 24,698.09 General-Designated 01 Parking Fees - - - 0.00
General-Designated 01 Campbell Tract Redemption - - - 0.00 General-Designated 02 Gifts Donations 18,268.60 - - 18,268.60 General-Designated 02 K-9 Unit - - - 0.00
General-Designated 02 YPD Donated - Hitson 8,818.80 - - 8,818.80 General-Designated 02 YPD Donated - Travellers 741.68 - - 741.68 General-Designated 02 YPD Donated - Teen Fund 3,956.43 - - 3,956.43 General-Designated 03 YVFD Volunter Fund (0.00) - - (0.00) General-Restricted 04 Crandell Cash 459,849.65 - - 459,849.65 General-Restricted 05 Property Abatement Recovery 22,057.86 182.96 4,762.80 17,478.02 General-Designated 08 Grant Projects Reserve 1,325,744.57 22,635.00 1,348,379.57 - General-Designated 08 PERS Pension Liability Reserve - - - 0.00 General-Designated 09 Reserves for Cap. Outlay 609,308.39 - - 609,308.39 General-Designated 10 Capital Outlay 30,940.38 - 12,952.00 17,988.38 General-Designated 11 Capital Building Project - YPD (258,825.30) 134,549.39 - (393,374.69) General - All General-Designated 12 Debt Servicing - GF (YPD Bldg) 460,834.65 - - 460,834.65 General-Designated 12 Debt Servicing Reserves - GF (YPD Bldg) 200,000.00 - - 200,000.00 General-Designated 90 Payroll Clearing (1,063,352.08) 857,722.90 689,680.60 (895,309.78) 10,147,185.55 $ Spec. Rev. -Streets 20 Road and Street Funds including HUTA 736,104.98 36,341.56 47,984.11 724,462.43 Spec. Rev. -Streets 21 Local Transportation 1,143,654.17 - 1,143,654.17 - Streets Spec. Rev. -Streets 24 Fines - Traffic Safety 212,915.89 1,717.32 4,186.20 210,447.01 2,078,563.61 $ Special Revenue 30 Fire Assessment Spec. Rev 1,415,395.32 25,153.04 7,656.75 1,432,891.61 Special Revenue 31 Landfill Access Fee - Debt Service 81,057.32 18,215.41 2,838.87 96,433.86 Special Revenues Special Revenue 32 Developer Impact Fees 359,187.27 - - 359,187.27 $ 1,888,512.74 Solid Waste 50 Solid Waste Operating 363,826.56 - 8,540.23 355,286.33 Solid Waste Solid Waste 51 Solid Waste Capital Projects (419,932.56) - (419,932.56) - $ (64,646.23) Special Grants 60 Spec Grants Capital Outlay 1,929,006.74 - 44,516.58 1,884,490.16 Special Grants Special Grants 65 Community Development Grants 412,829.08 567.19 14,332.35 399,063.92 SpecialOperating 67 SUMIT Operating 409,910.75 - 228.20 409,682.55 $ 2,693,236.63 Water Enterprise 70 Water Operating 163,000.87 234,365.04 191,667.07 205,698.84 Water Enterprise 71 Water Capital Projects 5,475,629.31 - 49,032.20 5,426,597.11 Water Enterprise 72 Water Debt Servicing 543,651.92 - - 543,651.92 Water Enterprise 72 USDA COPS 2010 300,000.00 - - 300,000.00 Water Enterprise Water Enterprise 74 Water Reserves 1,749,409.18 - 1,749,409.18 - $ 8,225,357.05 Sewer Enterprise 80 Sewer Operating 421,124.96 260,362.86 186,623.46 494,864.36 Sewer Enterprise 81 Sewer Capital Outlay 5,032,036.77 - 315.62 5,031,721.15 Sewer Enterprise 82 Sewer Debt Servicing (385,208.05) - (385,208.05) - Sewer Enterprise 82 USDA COPS 2003 610,000.00 - - 610,000.00 Enterprise-Sewer Sewer Enterprise 84 Sewer Reserves 2,558,203.56 - 2,558,203.56 - $ 8,309,581.02 Agency
Agency 92 Agency SUMIT - Cash 3,717.17 - - 3,717.17 $ 3,717.17 COLUMN TOTALS $ 33,126,772.41 $ 2,423,937.54 $ 2,269,202.41 $ 33,281,507.54 $ 33,281,507.54 -
BANK RECAPITULATION PER BANK Market Value Unrealized Gain PER LEDGER L.A.I.F. 0.861% 27,862,327.56 27,503,611.63 (358,715.93) Pershing Bank - CD & Treas Investments 3,430,000.00 3,445,329.65 15,329.65 Pershing Bank - Cash 18,891.52
Petty Cash Drawers 1,200.00
MB SUMIT Operating x2233 412,460.84
MB SUMIT Asset Forfeiture X4281 3,707.71
Mechanics Bank - ZBA x6830 -
Mechanics Bank - MM x6505 502,827.33
Mechanics Bank - 01015102 1,459,114.81
TOTAL PER BANK 33,690,529.77

ADJUSTMENTS
Less Outstanding Checks MB (427,427.72)
Less Outstanding Checks SVB SUMIT (2,550.09)
Interest (10.96)
XFER 51,016.82
Aflac 1,780.73
Trane 4,782.00
Incorrect CC payment 2,252.38
Benefits (261.94)
Tokens 62.00
Mechanics Money Market 6505 Feb (1,365.62)
Mechanics Money Market 6505 Jan (1,461.71)
MBSC Interest Feb (6,502.57)
MBSC Interest Jan (12,388.95)
XBP March (17,889.59)
XBP Timing Diff 942.99
TOTAL PER LEDGER 33,281,507.54 33,281,507.54
(0.00)
Colleen Baker, City Mayor
Emily Aldrich, Finance Director

CITY OF YREKA

REPORT ON CASH TO THE CITY COUNCIL
Feb-2026
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2025-2026 Operating Budget of Revenue and Expenditures
with Year to Date Actual Results February 28, 2026
Fund Analysis
Major Grp Fund 2 Adopted Operating Budget Year to Date 3 Adopted Operating Budget Year to Date 4 Operating Budget Net Actual
Year to Date
Current Cash
Balance
Investment in LAIF 00 - - - - - - -
General Operating 01 11,658,945.09 11,658,945.09 6,864,959.64 11,656,242.78 11,656,242.78 7,360,722.17 2,702.31 (495,762.53) 8,290,245.85 General Operating Fund 11,658,945.09 11,658,945.09 6,864,959.64 11,656,242.78 11,656,242.78 7,360,722.17 2,702.31 (495,762.53) 8,290,245.85 Gifts Donations 02 - - 640.29 500.00 500.00 204.00 (500.00) 436.29 31,785.51 Trusts -Crandell-Stewart 04 - - 9,254.04 2,400.00 2,400.00 2,314.68 (2,400.00) 6,939.36 459,849.65 Property Abatement 05 125,000.00 125,000.00 68,672.10 125,000.00 125,000.00 51,995.57 - 16,676.53 17,478.02 General Fund Reserves 08 - - 22,635.00 - - - - 22,635.00 1,348,379.57 Reserves for Cap. Outlay 09 600,000.00 600,000.00 16,465.79 - - - 600,000.00 16,465.79 609,308.39 Capital Outlay 10 95,000.00 95,000.00 29,408.28 107,000.00 107,000.00 31,363.63 (12,000.00) (1,955.35) 17,988.38 Construction Fund 11 1,020,000.00 1,020,000.00 - 1,570,000.00 1,570,000.00 1,473,813.96 (550,000.00) (1,473,813.96) (393,374.69) General Fund Debt Servicing 12 126,375.00 126,375.00 - 126,375.00 126,375.00 43,522.50 - (43,522.50) 660,834.65 Payroll Clearing 90 - - - - - 54,142.28 - (54,142.28) (895,309.78) General Fund - Restricted or Designated 1,966,375.00 1,966,375.00 147,075.50 1,931,275.00 1,931,275.00 1,657,356.62 35,100.00 (1,510,281.12) 1,856,939.70 Total General Fund 13,625,320.09 13,625,320.09 7,012,035.14 13,587,517.78 13,587,517.78 9,018,078.79 37,802.31 (2,006,043.65) 10,147,185.55 Gas Tax & Traffic Cong. 20 1,039,411.17 1,039,411.17 264,740.82 1,039,411.17 1,039,411.17 463,234.16 (198,493.34) - 724,462.43 Local Transportation 21 240,000.00 240,000.00 95,259.60 240,000.00 240,000.00 - - 95,259.60 1,143,654.17 Fines - Traffic Safety 24 85,758.93 85,758.93 15,022.82 85,758.93 85,758.93 38,573.89 - (23,551.07) 210,447.01 Road, Street & Transit - Restricted 1,365,170.10 1,365,170.10 375,023.24 1,365,170.10 1,365,170.10 501,808.05 (126,784.81) - 2,078,563.61 Total Road, Streets and Transit 1,365,170.10 1,365,170.10 375,023.24 1,365,170.10 1,365,170.10 501,808.05 (126,784.81) - 2,078,563.61 Fire Assessment Spec. Rev 30 386,000.00 651,627.00 259,772.42 636,420.25 857,047.25 267,833.74 (205,420.25) (8,061.32) 1,432,891.61 Landfill Access Fee - Debt Service 31 243,000.00 243,000.00 162,797.92 243,000.00 243,000.00 200,017.63 - (37,219.71) 96,433.86 Developer Impact Fees 32 103,000.00 103,000.00 7,210.15 36,000.00 36,000.00 - 67,000.00 7,210.15 359,187.27 Special Revenue - Restricted 732,000.00 997,627.00 429,780.49 915,420.25 1,136,047.25 467,851.37 (138,420.25) (38,070.88) 1,888,512.74 Total Special Revenue 732,000.00 997,627.00 429,780.49 915,420.25 1,136,047.25 467,851.37 (138,420.25) (38,070.88) 1,888,512.74 Spec Grants Capital Outlay 60 260,000.00 260,000.00 - 772,000.00 772,000.00 476,035.41 (512,000.00) (476,035.41) 1,884,490.16 Community Development Grants 65 300,800.00 300,800.00 17,932.33 300,000.00 300,000.00 27,138.16 800.00 (9,205.83) 399,063.92 SUMIT Operating Fund 67 - - - - - 228.20 - (228.20) 409,682.55 Special Grants - Capital Projects 560,800.00 560,800.00 17,932.33 1,072,000.00 1,072,000.00 503,401.77 (511,200.00) (485,469.44) 2,693,236.63 Special Grants - Operating &
Capital Projects 560,800.00 560,800.00 17,932.33 1,072,000.00 1,072,000.00 503,401.77 (511,200.00) (485,469.44) 2,693,236.63 Solid Waste Operating 50 42,542.60 42,542.60 33,912.84 - 92,542.60 57,605.39 42,542.60 (23,692.55) 355,286.33 Solid Waste Capital Projects 51 - - - - - - - - (419,932.56) Solid Waste 42,542.60 42,542.60 33,912.84 - 92,542.60 57,605.39 42,542.60 (23,692.55) (64,646.23) Solid Waste 42,542.60 42,542.60 33,912.84 - 92,542.60 57,605.39 42,542.60 (23,692.55) (64,646.23) Water Operating 70 3,746,741.04 3,746,741.04 2,473,404.54 3,746,741.04 3,746,741.04 2,307,988.45 165,416.09 - 205,698.84 Water Capital Projects 71 2,534,500.00 2,534,500.00 (373,650.00) 2,534,500.00 2,534,500.00 544,722.13 (918,372.13) - 5,426,597.11 Water Debt Servicing 72 314,238.30 314,238.30 - 298,238.30 298,238.30 58,178.07 16,000.00 (58,178.07) 843,651.92 Water Reserves 74 (593,154.34) (593,154.34) 174,593.46 - - - (593,154.34) 174,593.46 1,749,409.18 Water Enterprise 6,002,325.00 6,002,325.00 2,274,348.00 6,579,479.34 6,579,479.34 2,910,888.65 (577,154.34) (636,540.65) 8,225,357.05 Sewer Operating 80 3,323,508.70 3,323,508.70 2,288,877.29 3,323,508.70 3,323,508.70 1,737,355.18 551,522.11 - 494,864.36 Sewer Capital Outlay 81 1,900,000.00 1,900,000.00 - 1,900,000.00 1,900,000.00 3,374.62 - (3,374.62) 5,031,721.15 Sewer Debt Servicing 82 422,457.50 422,457.50 - 402,457.50 402,457.50 306,573.75 20,000.00 (306,573.75) 224,791.95 Sewer Reserves 84 (397,408.20) (397,408.20) 155,962.94 - - - (397,408.20) 155,962.94 2,558,203.56 Sewer Enterprise Fund 5,248,558.00 5,248,558.00 2,444,840.23 5,625,966.20 5,625,966.20 2,047,303.55 (377,408.20) 397,536.68 8,309,581.02 Total Enterprise Funds 11,250,883.00 11,250,883.00 4,719,188.23 12,205,445.54 12,205,445.54 4,958,192.20 (954,562.54) (239,003.97) 16,534,938.07 SUMIT Agency Trust - Cash 92 - - - - - - - - 3,717.17
Agency Funds - - - - - - - - 3,717.17 \
Total Agency Funds - - - - - - - - 3,717.17
All Funds Combined 27,576,715.79 27,842,342.79 12,587,872.27 29,145,553.67 29,458,723.27 15,506,937.57 (1,523,837.88) (2,919,065.30) 33,281,507.54 Excess of Rev over Exp.-Surplus/
R E V E N U E E X P E N S E (Deficit)
Approval:______________________________________________________Colleen Baker, City Mayor 6/11/2026 11:47 AM Yreka City Council Agenda
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City of Yreka Financial Statement Groupings
Summary FY 25-26 YTD Fiscal Performance
as of February 28, 2026
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt

1. GENERAL FUNDS
Revenue
801 REVENUE: PROP TAXES 1,592,950.00 1,592,950.00 954,008.31 -638,941.69 807 MVLF IN LIEU 875,000.00 875,000.00 0.00 -875,000.00 810 SALES TAX 6,950,000.00 6,950,000.00 3,519,973.78 -3,430,026.22 813 REVENUE: TOT TAXES 1,243,000.00 1,243,000.00 812,676.96 -430,323.04 814 REVENUE: FRANCHISE FEES 300,000.00 300,000.00 314,866.98 14,866.98 815 REVENUE - LICENSES AND PERMITS 349,600.00 349,600.00 215,577.12 -134,022.88 825 REVENUE - FINES & FORFEITURES 250.00 250.00 7,195.88 6,945.88 830 REVENUE - USE OF MONEY & PROPERTY 385,800.00 385,800.00 239,609.38 -146,190.62 850 REVENUE - INTERGOVERNMENTAL 934,882.09 934,882.09 451,305.93 -483,576.16 870 REVENUE - USER FEES AND CHARGES 116,900.00 116,900.00 143,012.26 26,112.26 880 ICA ALLOCATION 361,608.00 361,608.00 255,360.00 -106,248.00 882 REVENUE - OTHER 5,000.00 5,000.00 98,448.54 93,448.54 883 GAIN (LOSS) ON SALE OF ASSETS 0.00 0.00 0.00 0.00
898 INTERFUND TRANSFERS 510,330.00 510,330.00 0.00 -510,330.00

1. GENERAL FUNDS Revenue Totals 13,625,320.09 13,625,320.09 7,012,035.14 -6,613,284.95 Expense
100 MAYOR, COUNCIL, CITY MANAGER, CLERK 757,889.98 757,889.98 225,085.14 532,804.84 110 EXP. GENERAL GOVERNMENT 1,289,208.14 1,289,208.14 1,350,698.69 -61,490.55 130 PUBLIC SAFETY CODE ENFORCEMENT 341,274.33 341,274.33 145,506.92 195,767.41 Thursday, June 11, 2026 Page 1 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
200 PUBLIC SAFETY - POLICE 5,211,133.04 5,211,133.04 3,318,411.40 1,892,721.64 210 PUBLIC SAFETY - FIRE 1,472,000.26 1,472,000.26 645,890.22 826,110.04 215 PUBLIC SAFETY - HAZARD MITIGATION 171,482.09 171,482.09 103,861.41 67,620.68 220 PLANNING AND DEVELOPMENT 1,136,202.09 1,136,202.09 688,026.63 448,175.46 300 PUBLIC WORKS - ENGINEERING AND ADMIN 122,480.38 122,480.38 59,260.45 63,219.93 350 PUBLIC WORKS - MECHANICAL MAINT (ELIM) 0.00 0.00 477,188.86 -477,188.86 370 PUBLIC WORKS - SERVICE CENTER (ELIM) 0.00 0.00 26,175.22 -26,175.22 400 CULTURAL & REC - PARKS AND REC 601,802.37 601,802.37 317,948.72 283,853.65 600 COMMUNITY DEVELOPMENT 96,500.00 96,500.00 141,078.67 -44,578.67 645 CAPITAL OUTLAY 1,645,000.00 1,645,000.00 1,475,423.96 169,576.04 740 PRINCIPAL ON LT DEBT 38,000.00 38,000.00 0.00 38,000.00 745 INTEREST ON LT DEBT 88,375.00 88,375.00 43,522.50 44,852.50 760 INTERFUND TRANSFERS 616,170.10 616,170.10 0.00 616,170.10

1. GENERAL FUNDS Expense Totals 13,587,517.78 13,587,517.78 9,018,078.79 4,569,438.99

1. GENERAL FUNDS Net Position Change 37,802.31 37,802.31 -2,006,043.65 -2,043,845.96 Thursday, June 11, 2026 Page 2 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 1. GENERAL FUNDS (1102 detail records)

2. STREETS FUNDS
Revenue
825 REVENUE - FINES & FORFEITURES 15,000.00 15,000.00 10,563.61 -4,436.39 830 REVENUE - USE OF MONEY & PROPERTY 17,000.00 17,000.00 42,480.33 25,480.33 850 REVENUE - INTERGOVERNMENTAL 726,000.00 726,000.00 319,354.30 -406,645.70 870 REVENUE - USER FEES AND CHARGES 0.00 0.00 2,625.00 2,625.00 882 REVENUE - OTHER 0.00 0.00 0.00 0.00
887 REVENUE: INKIND 11,000.00 11,000.00 0.00 -11,000.00 898 INTERFUND TRANSFERS 596,170.10 596,170.10 0.00 -596,170.10

2. STREETS FUNDS Revenue Totals 1,365,170.10 1,365,170.10 375,023.24 -990,146.86 Expense
300 PUBLIC WORKS - ENGINEERING AND ADMIN 90,686.10 90,686.10 34,816.86 55,869.24 310 PUBLIC WORKS - STREET MAINTENANCE 525,564.73 525,564.73 232,923.48 292,641.25 311 PUBLIC WORKS - STREET SWEEPING 86,160.98 86,160.98 71,633.12 14,527.86 312 PUBLIC WORKS - STREET LIGHTING 67,151.23 67,151.23 31,146.77 36,004.46 313 PUBLIC WORKS - WEED CONTROL STREETS 14,404.79 14,404.79 1,206.95 13,197.84 314 PUBLIC WORKS - PUBLIC PARKING LOTS 1,989.66 1,989.66 2,323.31 -333.65 315 PUBLIC WORKS - STREETSCAPE MAINTENANCE 95,673.47 95,673.47 15,027.54 80,645.93 320 PUBLIC WORKS - TRAFFIC SAFETY 85,758.93 85,758.93 35,514.89 50,244.04 340 TRANSPORTATION 240,000.00 240,000.00 0.00 240,000.00 390 PUBLIC WORKS - STORM DRAINS 130,780.21 130,780.21 72,406.13 58,374.08 645 CAPITAL OUTLAY 27,000.00 27,000.00 4,809.00 22,191.00

2. STREETS FUNDS Expense Totals 1,365,170.10 1,365,170.10 501,808.05 863,362.05

2. STREETS FUNDS Net Position Change 0.00 0.00 -126,784.81 -126,784.81 Thursday, June 11, 2026 Page 3 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 2. STREETS FUNDS (338 detail records)

3. SPECIAL REVENUE FUNDS
Revenue
811 OTHER TAXES 346,000.00 346,000.00 230,100.85 -115,899.15 815 REVENUE - LICENSES AND PERMITS 103,000.00 103,000.00 0.00 -103,000.00 830 REVENUE - USE OF MONEY & PROPERTY 40,000.00 40,000.00 36,881.72 -3,118.28 870 REVENUE - USER FEES AND CHARGES 243,000.00 243,000.00 162,797.92 -80,202.08 882 REVENUE - OTHER 0.00 265,627.00 0.00 -265,627.00

3. SPECIAL REVENUE FUNDS Revenue Totals 732,000.00 997,627.00 429,780.49 -567,846.51 Expense
100 COLLECTION EXPENSE 68,000.00 68,000.00 25,017.63 42,982.37 210 PUBLIC SAFETY - FIRE 45,000.00 265,627.00 214,910.10 50,716.90 645 CAPITAL OUTLAY 0.00 0.00 0.00 0.00
740 PRINCIPAL ON LT DEBT 211,882.34 211,882.34 173,537.99 38,344.35 745 INTEREST ON LT DEBT 54,537.91 54,537.91 54,385.65 152.26 760 INTERFUND TRANSFERS 536,000.00 536,000.00 0.00 536,000.00

3. SPECIAL REVENUE FUNDS Expense Totals 915,420.25 1,136,047.25 467,851.37 668,195.88

3. SPECIAL REVENUE FUNDS Net Position Change -183,420.25 -138,420.25 -38,070.88 100,349.37 Thursday, June 11, 2026 Page 4 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 3. SPECIAL REVENUE FUNDS (46 detail records)

4. CAPITAL & CDBG GRANTS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 800.00 800.00 8,415.33 7,615.33 850 REVENUE - INTERGOVERNMENTAL 560,000.00 560,000.00 9,517.00 -550,483.00 882 REVENUE - OTHER 0.00 0.00 0.00 0.00

4. CAPITAL & CDBG GRANTS Revenue Totals 560,800.00 560,800.00 17,932.33 -542,867.67 Expense
207 PUBLIC SAFETY - SUMIT 0.00 0.00 228.20 -228.20
600 COMMUNITY DEVELOPMENT 335,000.00 335,000.00 55,108.16 279,891.84 645 CAPITAL OUTLAY 737,000.00 737,000.00 448,065.41 288,934.59

4. CAPITAL & CDBG GRANTS Expense Totals 1,072,000.00 1,072,000.00 503,401.77 568,598.23

4. CAPITAL & CDBG GRANTS Net Position Change -511,200.00 -511,200.00 -485,469.44 25,730.56 Thursday, June 11, 2026 Page 5 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 4. CAPITAL & CDBG GRANTS (118 detail records)

5. WATER FUNDS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 250,000.00 250,000.00 174,593.46 -75,406.54 850 REVENUE - INTERGOVERNMENTAL 1,984,500.00 1,984,500.00 -388,550.00 -2,373,050.00 870 REVENUE - USER FEES AND CHARGES 3,751,825.00 3,751,825.00 2,471,100.29 -1,280,724.71 882 REVENUE - OTHER 0.00 0.00 2,304.25 2,304.25
883 GAIN (LOSS) ON SALE OF ASSETS 0.00 0.00 14,900.00 14,900.00 898 INTERFUND TRANSFERS 16,000.00 16,000.00 0.00 -16,000.00

5. WATER FUNDS Revenue Totals 6,002,325.00 6,002,325.00 2,274,348.00 -3,727,977.00 Expense
100 COLLECTION EXPENSE 381,993.44 381,993.44 222,660.05 159,333.39 300 ENGINEERING 276,667.76 276,667.76 84,306.28 192,361.48 500 WATER DISTRIBUTION EXPENSE 1,385,337.99 1,385,337.99 746,279.98 639,058.01 510 WATER TREATMENT AND CONSERVATION 1,616,741.85 1,616,741.85 1,184,658.77 432,083.08 510 COST OF POWER AND WATER 386,000.00 386,000.00 273,242.75 112,757.25 645 CAPITAL OUTLAY 2,109,500.00 2,109,500.00 245,762.75 1,863,737.25 740 PRINCIPAL ON LT DEBT 183,791.43 183,791.43 0.00 183,791.43 745 INTEREST ON LT DEBT 114,446.87 114,446.87 58,178.07 56,268.80 799 ICA EXPENSE 125,000.00 125,000.00 95,800.00 29,200.00

5. WATER FUNDS Expense Totals 6,579,479.34 6,579,479.34 2,910,888.65 3,668,590.69

5. WATER FUNDS Net Position Change -577,154.34 -577,154.34 -636,540.65 -59,386.31 Thursday, June 11, 2026 Page 6 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 5. WATER FUNDS (376 detail records)

6. SEWER FUNDS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 125,000.00 125,000.00 155,962.94 30,962.94 850 REVENUE - INTERGOVERNMENTAL 1,625,000.00 1,625,000.00 0.00 -1,625,000.00 870 REVENUE - USER FEES AND CHARGES 3,478,558.00 3,478,558.00 2,286,573.04 -1,191,984.96 882 REVENUE - OTHER 0.00 0.00 2,304.25 2,304.25
883 GAIN (LOSS) ON SALE OF ASSETS 0.00 0.00 0.00 0.00
898 INTERFUND TRANSFERS 20,000.00 20,000.00 0.00 -20,000.00

6. SEWER FUNDS Revenue Totals 5,248,558.00 5,248,558.00 2,444,840.23 -2,803,717.77 Expense
100 COLLECTION EXPENSE 366,542.31 366,542.31 203,018.23 163,524.08 300 ENGINEERING 269,243.51 269,243.51 82,626.93 186,616.58 510 COST OF POWER AND WATER 330,000.00 330,000.00 152,741.21 177,258.79 550 WASTEWATER COLLECTION EXPENSE 851,692.40 729,692.40 243,927.80 485,764.60 560 WASTEWATER TREATMENT EXPENSE 1,297,422.48 1,419,422.48 895,481.01 523,941.47 645 CAPITAL OUTLAY 1,872,000.00 1,872,000.00 3,374.62 1,868,625.38 740 PRINCIPAL ON LT DEBT 196,000.00 196,000.00 101,000.00 95,000.00 745 INTEREST ON LT DEBT 206,457.50 206,457.50 205,573.75 883.75 799 ICA EXPENSE 236,608.00 236,608.00 159,560.00 77,048.00

6. SEWER FUNDS Expense Totals 5,625,966.20 5,625,966.20 2,047,303.55 3,578,662.65

6. SEWER FUNDS Net Position Change -377,408.20 -377,408.20 397,536.68 774,944.88 Thursday, June 11, 2026 Page 7 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 6. SEWER FUNDS (253 detail records)

7. LANDFILL FUNDS
Revenue
850 REVENUE - INTERGOVERNMENTAL 42,542.60 42,542.60 21,461.01 -21,081.59

7. LANDFILL FUNDS Revenue Totals 42,542.60 42,542.60 21,461.01 -21,081.59 Expense
380 PUBLIC WORKS - WASTE DISPOSAL 92,542.60 92,542.60 57,605.39 34,937.21

7. LANDFILL FUNDS Expense Totals 92,542.60 92,542.60 57,605.39 34,937.21

7. LANDFILL FUNDS Net Position Change -50,000.00 -50,000.00 -36,144.38 13,855.62 Thursday, June 11, 2026 Page 8 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 7. LANDFILL FUNDS (23 detail records) Grand Total 1,661,380.48 1,616,380.48 2,931,517.13 1,315,136.65 Thursday, June 11, 2026 Page 9 of 9
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YREKA CITY COUNCIL MEETING MINUTES
June 2, 2026
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. 6:30PM CALL TO ORDER REGULAR SESSION, PLEDGE OF ALLEGIANCE:

The meeting was called to order at 6:30 pm

2. ROLL CALL:

Councilmembers McCoy, Middleton, Davis, Clair & Baker are present This meeting is being livestreamed and can be viewed on Siskiyou Media Council’s YouTube Channel https://www.youtube.com/channel/UCzx2GSYFCrgE5przvnzitXQ Yreka City Council Agenda
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3. APPROVAL OF THE AGENDA:

Motion to Approve the Agenda as presented
MOTIONED: Councilmember McCoy
SECOND: Councilmember Clair
AYES: Councilmembers McCoy, Middleton, Davis, Clair, & Baker NO’s: -0-
The motion passes

4. PRESENTATIONS: (NONE)

5. PUBLIC COMMENTS:

No public comment received

6. CONSENT AGENDA:

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

Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented MOTIONED: Councilmember Middleton
SECOND: Councilmember McCoy
AYES: Councilmembers McCoy, Middleton, Davis, Clair & Baker NO’s: -0-
The motion passes unanimously

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

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8. CITY BUSINESS:

Finance Director
a.Agenda Title: Introduction and First Reading of Ordinance No. 889 Amending Chapter 12.04 of the Yreka Municipal Code Regarding Water Service Accounts, Billing Responsibility and Collection Procedures; Finding Action Exempt from CEQA (Guidelines §§15061(B)(3) and 15378.

Recommended City Council Action: Introduce and conduct the first reading of the proposed ordinance, waive full reading of the ordinance by title only, and set the ordinance for second reading and adoption at the next regular City Council Meeting.

No public comment received
Motion to Introduce and conduct the first reading of Ordinance No. 889 Amending Chapter 12.04 of the Yreka Municipal Code Regarding Water Service Accounts, Billing Responsibility and Collection Procedures; Finding Action Exempt from CEQA (Guidelines §§15061(B)(3) and 15378, waive full reading of the ordinance by title only, and set the ordinance for second reading and adoption at the next regular City Council Meeting.

MOTIONED: Councilmember Davis
SECOND: Councilmember McCoy
AYES: Councilmembers McCoy, Middleton, Davis, Clair & Baker NO’s: -0-
The motion passes
f. CITY MANAGER/STAFF REPORTS:

City Manager William Ibershof gave an update
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.) Councilmember Davis gave an update
Councilmember McCoy gave an update
Councilmember Clair gave an update
Councilmember Middleton gave an update
Councilmember Baker gave an update
h. ADJOURNMENT:

Meeting adjourned at 7:16 pm
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____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on June 16, 2026
___________________________
Cyndy Prohaska, City Clerk

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
Prepared by: Emily Aldrich, Finance Director
Agenda Title: Second Reading of Ordinance No.899 Amending Chapter 12.04 of the Yreka Municipal Code Regarding Water Service Accounts, Billing Responsibility, and Collection Procedures; Finding Action Exempt from CEQA (Guidelines §§15061(B)(3) and 15378
Meeting date: June 16, 2026
Discussion:

The City of Yreka created the “waterworks department” in 1911 through Ordinance No.

75. These provisions and various other amendments are now found in Yreka Municipal Code at Chapter 12.04 titled “Waterworks.”
In recent years, the City has seen a change in the practices regarding payment for water service where accounts open by tenants of the landowner go unpaid. Allowing the tenant of property to open water accounts has resulted in difficulties for the City to collect payment for water used in residential and commercial properties. Staff recommends that the City follow suit with how various other cities and public water providers address this issue by establishing primary responsibility for the water account and payment of water charges with the land owner.

Under the current municipal code, collection becomes a time-consuming processes, with ambiguity of responsibility for payment, and difficulty in tracking down responsible parties who fail to pay their bills for water service adding costs to the overall operation of the waterworks. Ultimately those costs of the waterworks are factored into future rates or covered by the general fund. The current practice results in added costs for operation of the water system as a whole and increased costs to rate payers in general.

The proposed amendments to Chapter 12.04 will not amend the rates paid by rate payers.

Instead, the proposed amendment clarifies and enhances that the responsibility for payment of water service runs with the land. This change is found at section 12.04.040, as amended.

This will make it easier for the City to obtain full payment for services provided.

In addition to the clarification as to the responsibility for payment, the proposed amendments also address adding definitions common to Chapter 12.04, clarifies the responsibilities of the department, modernizes bill procedures, updates unlawful connections, and updates how delinquent accounts are handled.

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The full text of Title 12.04 as proposed to be amended – including those sections without proposed edits -- is presented as Ex. A for full context.

Environmental Impact:

None, exempt. Pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq. herein referred to as “CEQA”) and the State CEQA Guidelines (State of California Guidelines for Implementation of the California Environmental Quality Act (Section 15000 et seq. of Title 14 of the California Code of Regulations), this ordinance is not subject to CEQA pursuant to Section 15061(b)(3) because it will not cause a direct or reasonably foreseeable indirect effect or change to the physical environment and it is not a "project", as defined in Section 15378 of the CEQA Guidelines.

Fiscal Impact:

None
Recommendation and Requested Action:

Second reading and adoption of the proposed ordinance, waive full reading of the ordinance by title only.

Attachments:

Ordinance No. 899 Amending Chapter 12.04 of the Yreka Municipal Code Regarding Water Service Accounts, Billing Responsibility, and Collection Procedures Yreka City Council Agenda
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1 2 ORDINANCE NO. 889
3 4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
5 OF YREKA, CALIFORNIA AMENDING CHAPTER 12.04
6 TO THE YREKA MUNICIPAL CODE ENTITLED
7 “WATERWORKS” AND FINDING AND DETERMINING
8 THAT THIS ORDINANCE IS NOT SUBJECT TO THE
9 CALIFORNIA ENVIRONMENTAL QUALITY ACT
10 PURSUANT TO CEQA GUIDELINES SECTIONS
11 15061(b)(3) AND 15378
12 WHEREAS, pursuant to the City’s police power, as granted broadly under 13 Article XI, Section 7 of the California Constitution, the City Council has the 14 authority to enact and enforce ordinances and regulations for the public peace, 15 health and welfare of the City and its residents; and 16 WHEREAS, the City Council of the City of Yreka created the waterworks 17 department in 1911 through Ordinance No. 75, and has adopted various 18 provisions amending and augmenting original ordinance, which can now be 19 found in the Yreka Municipal Code at Chapter 12.04 “Waterworks”; 20 WHEREAS, the City has seen a change in the practices regarding payment 21 for water service which has resulted in difficulties for the City to collect 22 payment for water used by tenants and occupants of residential and 23 commercial properties;
24 WHEREAS, under the current code the practice for collection is not in the 25 best interest of rate payers due to the time consuming, processes, ambiguity of 26 responsibility for payment, and difficulty in tracking down responsible 27 parties, resulting in added costs for operation of the water system as a whole 28 and increased costs to rate payers in general;
29 WHEREAS, the proposed amendments to Chapter 12.04 will not amend the 30 rates paid by rate payers, a code amendment is proper by ordinance alone; 31 WHEREAS, pursuant to the California Environmental Quality Act (Public 32 Resources Code Section 21000 et seq. herein referred to as “CEQA”) and the 33 State of California Guidelines for Implementation of the California Yreka City Council Agenda
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34 Environmental Quality Act (commencing with Section 15000 of Title 14 of 35 the California Code of Regulations; herein referred to as the "State CEQA 36 Guidelines"), the City is the "lead agency" for the preparation and 37 consideration of environmental documents for this ordinance; and 38 WHEREAS, the City Council finds and determines that this ordinance is not 39 subject to CEQA pursuant to Section 15061(b)(3) of the State CEQA 40 Guidelines because it will not cause a direct or reasonably foreseeable indirect 41 effect or change to the physical environment and it is not a "project", as 42 defined in Section 15378 of the CEQA Guidelines.
43 THE CITY COUNCIL OF THE CITY OF YREKA DOES HEREBY
44 ORDAIN AS FOLLOWS:
45 Section 1: Recitals. The recitals set forth above are true and correct and 46 incorporated herein by this reference.
47 Section 2. Yreka Municipal Code Chapter 12.04 “Waterworks” is hereby 48 amended as indicated in Exhibit A to this Ordinance
49 Section 3. CEQA Exemption. The City Council has considered all of the 50 evidence in the record, including the staff reports, the testimony received 51 during the meeting on the matter held by City Council, and hereby determines 52 that the adoption of this ordinance will not have a significant effect on the 53 environment. The City Council finds that this ordinance is not subject to the 54 California Environmental Quality Act (CEQA). This ordinance is not a 55 "project", as defined in Section 15378 of the State CEQA Guidelines, and 56 pursuant to Sections 15061(b)(3) of the State CEQA Guidelines will not cause 57 a direct or reasonably foreseeable indirect effect or change to the physical 58 environment. This ordinance is therefore exempt from the California 59 Environmental Quality Act.
60 Section 4. Severability. If any section, subsection, part, clause, sentence or 61 phrase of this ordinance or the application thereof is for any reason held to 62 be invalid or unconstitutional by a decision of any court of competent 63 jurisdiction, the validity of the remaining portions of this ordinance, the 64 application thereof, shall not be effected thereby but shall remain in full 65 force and effect, it being the intention of the City Council to adopt each 66 and every section, subsection, part, clause, sentence phrase regardless of Yreka City Council Agenda
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67 whether any other section, subsection, part, clause, sentence or phrase or 68 the application thereof is held to be invalid or unconstitutional. 69 Section 5. This Ordinance shall take effect thirty days after its passage and 70 adoption pursuant to California Government Code Section 36937 and shall 71 supersede any conflicting provision of any City of Yreka ordinance. 72 Section 6. Finding. The City Council finds its passage is required for the 73 immediate preservation of the public peace, health, and safety. 74 Specifically, the City Council finds each change made under this ordinance 75 is necessary to preserve the public peace, health, and safety for the 76 following reasons: threats to public places and property related to fire, 77 criminal activity, and degradation of resources and facilities; restoration of 78 facilities; protection of public facilities, employees, and residents; and to 79 address criminal behavior dangerous to the health, safety, and welfare of 80 the City’s residents and employees utilizing such facilities. 81 Section 7. Implementation. The City Council hereby authorizes and directs 82 the City Manager to take any action and sign any documents necessary to 83 implement this Ordinance.
84 Section 8. Certification. The City Clerk shall certify to the passage and 85 adoption of this ordinance and shall cause the same to be published or posted 86 according to law.
87 Section 9. Inconsistencies. Any provisions of the Yreka Municipal Code, or 88 appendices thereto, or any other ordinances of the City inconsistent herewith, 89 to the extent of such inconsistencies and no further, are hereby repealed. 90 Section 11. Codification. The City Clerk is directed and authorized to 91 instruct the publisher of the City of Yreka Municipal Code that codification of 92 this ordinance is limited to Section 2.
93 Section 12. Execution. The Mayor and City Clerk are authorized to subscribe 94 this ordinance where indicated below to evidence its approval. 95 Introduced at a regular meeting of the City Council held on June 2, 96 2026 and passed, approved and adopted by at least a majority and adopted at a 97 regular meeting of the City Council of the City of Yreka held on June 16, 98 2026 by the following vote:
99 100 AYES:

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101 NOES:
102 ABSTAIN:
103 ABSENT:
104
105 Colleen Baker , Mayor
106 Approved as to Form: Attest:
107
108 Julia Homaechevarria, City Attorney Cynthia Prohaska, City Clerk 109
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Exhibit A
(Proposed additions shown Underlined and proposed deletions shown as Strikethrough) Chapter 12.04 WATERWORKS
Section:

12.04.010 Waterworks department created—Membership—Duties.

The waterworks department of the city is created and established. The city council shall serve as the waterworks department shall consist of a board of water commissioners appointed from the members of the city council. The members of the waterworks department shall be appointed by the mayor at the first regular meeting of the city council held in the month of May each year, and shall hold office until their successors have been appointed aforesaid.

All rules, regulations and rates made or adopted by the waterworks department shall be notice, adopted and published according to California law. It is the duty of the water department to fix the rules, regulations and rates for the use of water and have general supervision over the water system of the city. All rules, regulations and rates made or adopted by the waterworks department shall be submitted to the city council, and if adopted by the city council, they shall be published at least once in some newspaper published in the city, and shall take effect immediately upon adoption.
(Ord. 75 § 1, 1911).

12.04.020 Definitions Compensation of waterworks department.

The members of the waterworks department shall receive no compensation for service rendered, except as shall be allowed them by the city council, for actual necessary expense incurred in the performance of their duties.

For purposes of this Chapter, the following definitions shall apply:

Public works - Public Works Department - Water Department Meter reader - staff member who reads the city water meters Finance department – Accounting department for the City of Yreka Applicant - person who applies for city services
Consumption - Amount of water used in gallon measurements Late fee - Penalty charged for past due payments received after the due date Disconnect fee- Penalty charged for the reconnection of service (Ord. 75 § 2, 1911).

12.04.030 Departmental Responsibilities Secretary and president of department.

The city manager shall oversee all operations of the waterworks, consistent with this chapter, this code, and state law. The finance department shall be responsible for utility services accounting, utility customer invoicing and collection of payments from customers for those services provided by the city. The public works director shall be responsible for all other aspects of the operation of the waterworks department.

The waterworks department shall, within two weeks after appointment, meet and organize by appointing one of their members president, and one secretary, who shall keep a record of all their proceedings.

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(Ord. 75 § 3, 1911).

12.04.040 Responsibility for payment; Water shut off for rule violation. (a) The current owner of a property shall be responsible for payment of all water fees and water charges. The City shall render a single bill to the property to all owners of record known to the city. In the event of nonpayment, each property owner shall be liable for payment. Notwithstanding any other remedy or procedure herein, the city reserve the right at to all unpaid accounts to perfect a lien against the real property. (b) Property owners and/or occupant may, if they wish, make special arrangements with the Finance Department for the purpose of sending the bill to the occupant of the property rather than to the property owner(s). In such a case, the occupant may make payment, but the property owner remains solely liable for and responsible for any nonpayment. In the event occupants do not pay in accordance with the provisions of such an agreement, the service shall be disconnected and shall not be restored until the delinquent water charges, including the cost of water delivered, as well as the cost of reconnecting the service, shall have been paid. Such account will no longer be eligible for a special payment arrangement with such parties. (b) This chapter establishes The following rules, regulations and rates for the management, control and use of the waterworks of the city, and penalties for the violation thereof are prescribed and established.:
(c) Every person taking the water shall be considered as having expressed their his consent to be bound thereby, and whenever any of the rules, regulations and rates is violated, the right is reserved to shut off the water without notice other than that as proscribed by this code and California law., and the The person whose water is shut off shall forfeit all payments made, and the water shall not be turned on again until all unpaid amounts due rents and charges are paid, together with the applicable charge of one dollar for the turning on the same again. (d) Payments may be made either by mail, or by authorized payment locations/method as determined by the finance department. Payments may be made by cash, or check, or through other City-authorized payment methods as determined by the finance department.
(e) Dishonored payments (e.g., insufficient funds) shall be subject to a return payment fee as established by the city council. Failure to immediately redeem an account following return of a dishonored payment shall subject the customer to service termination after five (5) days’ notice and as applicable pursuant to this code and state law. Terminated service shall not be reestablished until the amount due is paid in cash along with a reconnection fee as established by the city council. After the second dishonored payment on an account within 24 months, the customer will be placed on a “cash only” basis.
(Ord. 75 § 4, 1911).

12.04.050 Application for water supply.
(a) Application for water service shall only be in the name of the owner(s) of the property. Owners of rental properties receiving City utility services, must establish a billing account for each property so served. The property owner of any property receiving services, has primary responsibility for payment of those services and all charges related thereto. Multiple property owners for a single parcel, shall each bear responsibility for the monthly utility charges incurred for any and all services provided to such property. (b) All persons desiring a water supply from the city's waterworks must make a written or printed application at the office of the director of public works, consistent with information required pursuant to such application and required under this chapter. stating fully and fairly all and severally the various uses to which the water is to be applied, and give the name of the licensed plumber selected to introduce the water to the premises of the consumer; and whenever thereafter any addition thereto, extension or alterations of service pipe or plumbing or fixtures are required, notice therefore must be given to the director of public works. Applicants must be 18 years Yreka City Council Agenda
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of age or older, must provide proper identification, and pay the required set up fee as established by the city council and set by resolution.
(Ord. 75 § 5, 1911).

12.04.060 Billing procedure; Discontinuance of water service and reconnection. (a) Utility services shall be billed monthly. All charges shall be billed one month in arrears. Each billing period shall represent as near as possible one month’s service. New services, which may have been connected after the beginning of the billing period and discontinued services, which may have been terminated before the end of the billing period, will not be billed the full months’ services. (b) It is the responsibility of each customer to terminate their utility service with the City. Requested water shut off in an attempt to evict a tenant is prohibited. Any request for shut off of a known rental property will require a fifteen-day notification of tenant via door hanger by the City to ensure the property is not occupied.

Upon property owner request for termination, service will only be transferred out of the property owners name under the following conditions:

1.. the property has sold to a new owner. The service transfer date shall, when possible, coincide with the escrow closing date; or

2. the property is in foreclosure and the financial institution or property management for the financial institution has requested service be transferred to them. (c) Utility service base rate charges are based on the rates established by the city council and set by resolution. Flat rate charges for new or discontinued services shall be prorated when service for a full billing period is not received. Water consumption charges shall be billed based on meter readings obtained each month at approximate 30 day intervals. Water consumption is calculated in gallons. Consumption charges are based on the rates established by the city council and set by resolution. (d) Billing and payment of City utility service charges are inseparable. Utility service remains in the name of the account holder until proof of new ownership. No new account will be established at a property with a delinquent bill.
(e) Utility billings are due upon receipt and if not paid by the specified due date are considered delinquent.

Delinquent accounts are subject to penalty, service disconnect and disconnect fee as established by the city council and set by resolution. Customer service accounts with past due balances unpaid on or before the due date, shall have the water service shut off after due notice. Due dates and turn off dates are determined by the finance department. Accounts are considered past due if payment is not received by the next bill date. Delinquency notices will be sent no less than 60 days prior to termination of service for delinquency, and notice of shut off will be provided no less than 7 business days prior to termination of service after such delinquency period. To avoid shut off, customers must pay their bill in full by any city approved payment method. Customers requesting alternative payment plan arrangements may do so by appearing in person at city hall no less than one day prior to termination date. The payment arrangement process shall be established by the City finance department. Any property where service has been discontinued for non-payment shall not have service restored without all arrearages plus fees and penalties as established by the City council and set by resolution first being paid. (f) In the case of a property or dwelling unit receiving water service from the city becoming vacant whether for voluntary or involuntary discontinuance of service, the fixed rate shall be charged and no allowance or rebate shall be made from the regular rates specified in this chapter, whether the water has been actually used or not, and regardless of whether the water service has been discontinued. Regardless of whether the property owner was or was not the consumer, the property owner has primary responsibility for payment of all water service charges accruing from and after any disconnection pursuant to Section 12.12.020. If the consumer of any delinquency of whose account resulted in termination of water service was a tenant, rather than the owner, of the Yreka City Council Agenda
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premises receiving water service, a new tenant or the owner shall bear no penalty or responsibility for the outstanding balance on the prior consumer's account or for the discontinuance of service. If a subsequent tenant desires service, service shall be reconnected in the same manner and for the same cost as any new water service.

For the purposes of this section, the term "subsequent tenant" shall not include any adult person who lived at the premises during the period that the charges or penalties accrued. (g) Reconnection at a property for non-payment shall not have service restored until either all account arrearages have been paid in full, or a written payment agreement has been established. (h) Where the city overcharges or undercharges a customer as the result of a billing error, the city will render an adjusted bill for the amount of the undercharge, without interest, and shall issue a refund or credit to the customer for the amount of the overcharge, without interest. Adjusted billing shall be computed back to the date that the city determines the billing error commenced or a maximum time as set by the finance department. Billing estimates shall be based on the method set forth by the finance department. (Ord. 805 § 2, 2008).

12.04.070 Tapping water pipes; Unauthorized service connections. (a) No person will be permitted to tap any of the water pipes of the main line of distributing system, or to insert tees, stopcocks or ferules therein, except under the personal direction and supervision of the director of public works; and notice of any such work must be given the director at least twenty-four hours previous to the commencement of the work.
(b) Any attempt by a customer or other persons to connect or reconnect to the city water service by any means, shall constitute theft of services which may be prosecuted as a violation of this code or pursuant to state law.
(c) Any customer who provides water service to another parcel when that receiving parcel’s water service has been disconnected for any reason, shall be considered as having made an unauthorized connection and will constitute a violation of this code and may be prosecuted as a violation of this code or pursuant to state law. (d) Any person who provides water service to another parcel without authorization of the water department for a cross-parcel transfer, shall be considered as having made an unauthorized connection and will constitute a violation of this code and may be prosecuted as a violation of this code or pursuant to state law. (Ord. 75 § 7, 1911).

12.04.080 Expenses of tapping water pipes paid by applicant.

All expenses attending the tapping of the water main, the furnishing of corporation cock, the introduction of water from the water main curb and the expense of keeping same in repair must be paid by the applicant. (Ord. 75 § 8, 1911).

12.04.090 Liability of plumber and city for work done.

The licensed plumber named in the application for the water will be considered as the agent for the applicant while employed in the prosecution of the work named in the application, and the waterworks department will not in no wise hold itself responsible for their his acts while so employed. (Ord. 75 § 9, 1911).

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12.04.100 Size of taps—Quality of service pipe.

The size of the tap to be inserted in any water main shall not be over seven-eighths inch standard, unless by special permit of the water department and the quality of the service pipe between the tap in the street main to the inside of the curb line, curb cock and curb box under application will be determined by the water department. (Ord. 75 § 10, 1911).

12.04.110 Service pipe connections.

Service pipe connections will be made at right angles with any main passing the premises, and the service pipe will be carried in a direct line to the inside of the curb line of the street, at which a metallic curb cock box of such form and construction as may be approved by the water department shall be inserted and properly connected with the water service pipe.
(Ord. 75 § 11, 1911).

12.04.120 Map or diagram to show location of service pipe.

When water mains have not been laid in front of premises to be supplied with water, a map or diagram or other explicit directions will be furnished the applicant by the water department as to point of attachment, to street main; the method of attachment; the position and depth of the service pipe in the street and the material of which it shall be composed.
(Ord. 75 § 12, 1911).

12.04.130 Laying service connection with water mains—Permit required.

No person will be allowed to open any trench in the streets or alleys of the city for the purpose of laying any service connection with the water mains of the city's waterworks, nor to make any attachment thereto, nor alterations to any service pipe in advance of receiving a written or printed permit duly issued by the director of public works, and if the work embraced therein is not completed within one month from the date of the permit, then the permit will be null and void and a new permit must be secured before the work is done. (Ord. 75 § 13, 1911).

12.04.140 Excavation.

All excavations in the streets and alleys of the city for the purpose of laying water pipes must be made and refilled in conformity with the ordinances and requirements of the city council, and the work must be carried on in a manner which will occasion the least inconvenience to the public. Open trenches must be duly guarded for the protection of the public and they will remain open at the risk of the applicant for water. (Ord. 75 § 14, 1911).

12.04.150 Backfilling trenches.

The backfilling of any trench in any public street, alley, place or other public grounds, must in all cases be thoroughly settled and the pavement or other surface improvement be replaced within twenty-four hours from the time the connection is made, and the street must be left in as good and satisfactory condition as before the excavation was commenced. All refuse or surplus earth, timber, stone or other material shall be fully and immediately removed from the street by the owner or plumber. (Ord. 75 § 15, 1911).

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12.04.160 Maintenance of service pipes.

The city will maintain and keep in repair each service pipe between the mains and the curb cock controlling the service, providing the same is in the roadway; providing also that the service has been inserted in full compliance with the rules governing the introduction of the water, and provided the failure of the service or injury thereto rendering repairs necessary does not result from some improper act or omission on the part of the owner or tenant of the premises supplied with water by the service pipe. (Ord. 75 § 16, 1911).

12.04.170 Branch service pipes—Stopcock required.

When more than one building is supplied by a single tap through two or more branch service pipes, then on each branch service pipe and always near the curb line of the sidewalk, a stopcock must be inserted and connected so that water may be shut off from each rate payer when necessary. (Ord. 75 § 17, 1911).

12.04.180 Plumber to shut off water.

No plumber shall leave the water turned on for any premises after completing the plumbing. (Ord. 75 § 18, 1911).

12.04.190 Reconnection of service pipes.

When service pipes are found disconnected at the corporation cock, they must be reconnected only by the director of public works.
(Ord. 75 § 19, 1911).

12.04.200 Right of entry.

Any authorized officer of the city shall have full right and authority to enter at all reasonable hours to all parts of premises supplied with water to see that the rules and regulations of this chapter are complied with. (Ord. 75 § 20, 1911).

12.04.210 Payment of charges to director.

Charges for furnishing corporation cocks and making taps must be paid to the director of public works before the water will be turned on.
(Ord. 75 § 21, 1911).

12.04.220 Using water during fire unlawful.

In case of fire or an alarm of fire it is unlawful for any person using water from the city waterworks, to permit faucets to run, or to use water during the continuance of any fire or conflagration within the city, and it shall be the duty of every person, immediately upon the sounding of any fire alarm to shut off and cease to use water for any purpose, save and except for human consumption and to extinguishment of such fire, or the saving of adjoining property.

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(Ord. 75 § 22, 1911).

12.04.230 Cutting off water during fire.

In case of fire or an alarm of fire, or in making repairs, or construction work, the city council reserves for its duly authorized agents the right to shut off water from any customers, or any number of customers, without notice, and to keep it off as long as it may be necessary and will not be liable for any consequent damage; and no reduction will be made from the water bills by reason of such cutting off of water. (Ord. 75 § 23, 1911)

12.04.240 Limitation of water supplied.

The water department shall have the right to limit the amount of water furnished to any customer should circumstances seem to warrant such action, although no limit may be stated in the application or permit for such use.1
(Ord. 75 § 24, 1911).

12.04.250 Setting gates and water valves for more.

The chief engineer of the fire department shall have full authority in case of fire, to set the gates and water valves on the water mains so as to secure the greatest possible pressure at the point where it is required, and it is their his duty to see, after each fire, that the gates and fire hydrants are restored to the conditions in which they were previous to the fire, and to report that this has been done to the director of public works. (Ord. 75 § 25, 1911).

12.04.260 Attaching hose to fireplug—Permit required.

No person or persons shall attach any hose to any fire hydrant or fire plug for any purpose or allow any water to be discharged therefrom (except a member of the fire department at a fire or for the purpose of practice or for washing off the apparatus) without having obtained a permit from the water department. (Ord. 75 § 26, 1911).

12.04.270 Service to another premises not connected to water mains. (a) No person, firm or corporation, hereinafter referred to as "customer," shall run or permit any water in the service pipe to their his or its premises, to run or be taken or transported or piped or conducted upon or into another lot or property, or dwelling house, apartment house, building or structure than that to which their his or its service pipe is connected. Provided, however, that any customer who desires to furnish water habitually to another or others, at premises not separately connected to the city mains, may, upon application and agreement to pay all charges therefor, be charged and shall pay for water thus furnished, and may furnish water to such other or others. Any customer who or which furnishes water habitually to another or others, at premises not separately connected to the city mains, shall be charged and shall pay for water thus furnished to such other or others at the same rate as that which such other or others would have had to pay were the premises of such other or others separately connected. In determining the applicable rate of charge, such water shall be deemed to have been divided equally among the premises served or furnished through such connection.
(b) Each dwelling house, each apartment house, and each building or structure to which water or water service is furnished shall be separately connected to the water mains of the city and no water from any such 1 3. See chapter 12.12.

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dwelling house, apartment house, building or structure, except as provided by subdivision (a) of this section, shall be conveyed to or be used in any other dwelling house, apartment house, building or structure, except that water furnished to any individual or separate dwelling house, apartment house, building or structure may be used for watering the surrounding grounds on the land, lot or parcel of the owner or tenant of the land, lot or parcel upon which such building is situated, as well as in any outbuilding thereto appurtenant but not used for a dwelling, business, industrial or manufacturing purpose, and provided further that each motel, auto court, or trailer court may nevertheless be served as one single building or structure whether the individual units thereof be connected in one building or structure or be separate buildings or structures. (Ord. 334, 1959: Ord. 75 § 27, 1911).

12.04.280 Reserved.

Editor's note(s)—Ord. No. 841, § 2, adopted Aug. 20, 2015, repealed § 12.04.280, which pertained to water for irrigation and derived from Ord. 75, § 28, adopted in 1911.

12.04.282 Emergency water connections outside city limits.

Upon application of any person owning real property contiguous to the city limits of the city of Yreka, the city council may grant authorization to said applicant to connect to the city water provided the following conditions are satisfied:
(1) Water will be used solely for domestic purposes serving existing structures which were previously serviced by an adequate water system which can no longer be reasonably utilized due to the unavailability of groundwater upon the subject property. "Domestic purposes" is defined as the use of the water for ordinary, everyday household use of a single-family dwelling, including irrigation of outdoor landscaping up to ten thousand square feet, but with no agricultural uses. (2) All costs of installation and connection with the city system shall be borne by the applicant, including fees normally charged by the city to properties within the city for a connection. (3) The applicant will agree to pay water fees pursuant to Section 12.04.410(b). (4) Water furnished by the city will not be utilized or provided to new buildings or structures or utilized for other development of the subject property.
(5) The city shall have the right in its sole discretion to terminate the right to receive water from the city system upon reasonable notice, said notice not to be less than ninety days. Applicant proceeds at their his or her own risk that the water supply will not be terminated in connection with action by the State Water Resources Control Board.
(6) The applicant shall execute a contract for recordation in a form approved by the city attorney setting forth the terms and conditions for water use pursuant to this section. (Ord. 803 § 2(part), 2008: Ord. 634, 1988).

12.04.290 Reserved.

Editor's note(s)—Ord. No. 841, § 2, adopted Aug. 20, 2015, repealed § 12.04.290, which pertained to wasting water prohibited and derived from Ord. 75, § 29, adopted in 1911.

12.04.300 Right to place water meters.

The water department assumes the right to place water meters on any and all taps and to charge meter rates whenever they see" fit to do so”. All meters thus set shall be and will remain the property of the city, and may be removed at any time by the water department.
(Ord. 75 § 30, 1911).

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12.04.310 Meter installment charge.
(a) For the installation of each water meter pursuant to the provisions of Section 12.04.300, except meters installed as replacements for meters theretofore installed, the applicant shall, pursuant to Section 12.04.050, pay to the water department of the city a meter installment charge fixed as follows:' Such charges as are heretofore or hereafter designated by resolution of the city council. (b) For replacement of meters with meters of a different size, the charge shall be the amount of the difference between the charge herein fixed for the meter previously installed and that herein fixed for the meter to be installed as a replacement, if replacement is made at the request of the consumer. If such replacement is upon the motion of the water department there shall be no charge pursuant to the provisions of this subsection.
(Ord. 459 (part), 1971: Ord. 394, 1966; Ord. 213, 1946; Ord. 75 § 30.1, 1911).

12.04.320 Defective meter record.

When the consumer of water disputes the record of the meter, it shall be their his duty to show to the satisfaction of the water department how or why such record is defective; otherwise the record of the meter shall be taken as conclusive, and in cases where the record of the meter has been found defective the water department will make an arbitrary charge for the water that has been used. (Ord. 75 § 31, 1911).

12.04.330 Interference with water system—Penal.

Any customer or other person found interfering or injuring any water meter, shut off, tap or faucet is guilty of a misdemeanor, and upon conviction thereof shall be fined not more than five hundred dollars or by imprisonment in the city jail for not exceeding six months, or by both such fine and imprisonment. (Ord. 440 § 1 (part), 1970; Ord. 75 § 32, 1911).

12.04.340 Permits for water use for building purposes.

The water department will issue permits for the use of water for building purposes, and fix a rate for same based on quantity of water to be used, upon certificate of the architect in charge of the work, specifying the number of bricks, perches of stone, cubic feet of concrete and square yards of plastering, or other purposes not enumerated in the foregoing for which water will be used, payment of the water rates shall be a condition precedent to the issuance of the permit.
(Ord. 75 § 33, 1911).

12.04.350 Discharge of water used for building purposes.

Water used for building purposes must be directly from the hose into the mortar beds, or other water tight receptacle and must not be discharged upon the ground or into or through a trench. The builders must properly guard the hose connection or cock through which they take the water so as to render it inaccessible to others. (Ord. 75 § 34, 1911).

12.04.360 Motors and elevators.

Water for motors and elevators shall be furnished only through meters at schedule rates. All such meters must be provided at the owner's expense, and must be of a pattern approved by the water department, they must be kept in repair and proper working order at the expense of the owner, and in case they fail to register, an arbitrary Yreka City Council Agenda
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charge will be made by the water department, which shall have the right to shut off the water during the time the register is out of order.
(Ord. 75 § 35, 1911).

12.04.370 Permit for horse watering fixture.

No permit for the use of water for any horse water fixture will be issued by the water department until the permission for the maintenance thereof shall have first been secured from the city council. (Ord. 75 § 36, 1911).

12.04.380 Accrual of water rates.

Water rates shall in all cases commence to accrue when water is turned on, at schedule rates proportioned for the period from that date until the following last day of such month. (Ord. 75 § 37, 1911).

12.04.390 List of delinquent water consumers.

It shall be the duty of the director of finance to monitor water accounts for payment delinquencyand enforce this chaptcollector of water rents to file with the city council on the first Thursday of each month, at its regular meeting, a list dated and signed, of all the water consumers defaulting in their payments up to five p.m. of the thirtieth of the previous month, together with the amount of water rents and penalties due from each consumer set opposite their his name, and it shall be the duty of the director of public works to proceed to turn off the water from the premises of each and every consumer so delinquent and he shall cause such service to be discontinued within forty-eight hours after the filing of the delinquent list. (Ord. 271 § 1, 1951: Ord. 75 § 39, 1911).

12.04.400 Council to furnish books and receipts.

The city council shall furnish the director of public works and the collector of water rent with the necessary resourcesbooks, blanks, and receipts for carrying on the provisions of this chapter. (Ord. 75 § 40, 1911).

12.04.410 Meter rates.
(a) The charge for water supplied and furnished by the city within its corporate limits shall be set by resolution of the city council of the city of Yreka consistent with state law. (b) For all water furnished or delivered for use or used outside of the limits of the city except water furnished or delivered from the Fall Creek main, being the water pipeline or main to be constructed for the transportation of water lines from Fall Creek in Siskiyou County to the city, meter rates shall be one and one-half times the rates provided for in subsection (a) of this section.
(c) For all water furnished or delivered directly from the Fall Creek main, being the pipeline or main constructed for the transportation of water from Fall Creek in Siskiyou County to the city, for use or used outside the corporate limits of the city, meter rates, for any amount up to and including the first ten thousand gallons of water furnished and delivered each month, shall be one and one-half times the rate provided by subsection (a) of this section, and for each one thousand gallons, or parts thereof, of water furnished and delivered each month over and above the ten thousand gallons, at five times the highest rate provided by subsection (b) of this section.

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(d) All water rates are due and payable in advance each month, except metered rates, which are due and payable on the tenth fifteenth of the month following the use. (e) All charges for water consumed or furnished, whether by meter or otherwise, are and shall be payable, at the office of the water rent collector, at the City Hall, and unless paid before the fifteenth of the month following billing, shall become delinquent, and it is made the duty of the director of public works to discontinue service of water to the premises from which the delinquent account arose. A charge of ten dollars will be added to any such delinquent account. A reconnection charge payable in advance in the amount of twenty-five dollars is required if the reconnection is made on a weekday between the hours of eight a.m. and three-thirty p.m. and the amount of fifty dollars on city holidays or any other time. (f) Any person, firm or corporation desiring water service must make an application for such service to the director of public works, at City Hall, and an administration fee to cover the costs of connection in the amount of twenty-five dollars shall be required of every applicant prior to providing service. (Ord. 745 § 1, 1998: Ord. 674, 1992; Ord. 670, 1992; Ord. 639, 1989; Ord. 628 §§ 1, 2, 1988: Ord. 585 § 1, 1983:

Ord. 526, 1976; Ord. 421 §§ l, 2, 1968; Ord. 313 § 1, 1957; Ord. 271 § 2, 1951; Ord. 242, 1948; Ord. 75 § 41, 1911).

12.04.420 Penalty for violation.

Every person, firm, company or corporation violating any provisions of this chapter, unless provided for herein, is guilty of a misdemeanor, and shall, upon conviction thereof, be punished by a fine of not exceeding five hundred dollars or by imprisonment for not more than six months, or by both such fine and imprisonment. Nothing in this section shall prevent or prohibit such other penalty that may be available under other chapter or California law. (Ord. 440 § 1(part), 1970; Ord. 75 § 42, 1911).

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
Prepared by: Emily Aldrich, Finance Director
Agenda title: Adopt a Resolution of the City Council of the City of Yreka Approving the Destruction of Certain City Records Identified by the Finance Director
Meeting date: June 16, 2026
Discussion:

Itemized below are records that the Finance Director has identified for destruction.

Records containing confidential data, such as payroll information, will be shredded by an appropriate vendor or organization. The California Secretary of State has issued guidelines for records destruction, and the City is generally more conservative in its records retention destruction. Those guidelines can be found online, http://archives.cdn.sos.ca.gov/local-gov-program/pdf/records-management-8.pdf .

And though, the City could adopt a blanket policy of following the Secretary of State guidelines, it is the Finance Director’s preference to annually request the City Council’s authority to destroy such records.

Identified records, where the Finance Director is requesting destruction:
• Accounts Payable: Records older than July 1, 2019, includes copies of invoices, checks and AP batch reports.
• Cash Receipts: Cash receipt daily batches older than July 1, 2019, includes copies of daily detail and summary ledger reports, and cash receipt for utility billing (water, sewer and landfill), building permits, animal and business licenses, and all other cash receipts received by the City.
• Payroll records: Payroll timecards, payroll bi-weekly cycle reports, registers and other payroll related and timecard processing information older than July 1, 2019. • Payroll annual and quarterly registers: Quarterly summary reports older than December 31, 2016, includes quarterly tax and gross wages summaries. • General ledger reports: Detail ledger listing of transactions, includes various sorts, periods and aggregations, older than July 1, 2019. Ledger data active and retained electronically on database server through 2012. Does not include summary trial balances.

Note that the trial balance, the permanent records of City’s total transactions for a fiscal year are being retained, however detail transaction records that arrive at those balances are being identified for destruction.
• General ledger journal entries: Journal entry posting of adjustments to the general ledger older than July 1, 2019, does not include sub ledger interface posting from payroll, accounts payable, accounts receivable, cash receipts, utility billing, dog and business licensing.

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• Electronic backup media: Historical backup tapes and diskettes data from legacy financial systems, where restoration tape drives are no longer in place, or active, and where software updates have made the data obsolete to restore. • Bank reconciliation: Bank statements, detail reconciliation work papers, cancelled checks and treasurer’s monthly and quarterly reports older than July 1, 2019. • Dog license: Dog license records older than July 1, 2019, includes receipts, registration tickets, sub ledger registers list, billing and adjustments batches pertaining to dog licensing
• Business license: Business license records older than July 1, 2019, includes receipts, registration tickets, sub ledger registers list, billing and adjustments batches pertaining to business licensing
• Water Accounts: Billing registers, customer correspondences, and other collection related information older than July 1, 2019
• Accounts Receivable: Invoice registers, collection receipts, aging lists and customer correspondences older than July 1, 2019; receivable collections includes landfill invoicing records and TOT tax records.

Fiscal Impact:

Estimated $600 for destruction of confidential information, in departmental budget.

Recommendation and Requested Action:

Adopt Resolution 2026-19 of the City Council of the City of Yreka approving the Destruction of Certain City Records Identified by the Finance Director Yreka City Council Agenda
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RESOLUTION NO. 2026-19

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA

APPROVING THE DESTRUCTION OF CERTAIN CITY RECORDS IDENTIFIED BY

THE FINANCE DIRECTOR
WHEREAS, the Finance Director has requested destruction of certain City documents and records, as hereinafter set forth; and
WHEREAS, the destruction of said records is consented to by the City Attorney; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Yreka as follows:

SECTION 1: The Finance Director is hereby authorized to destroy the following records:

Accounts Payable: Records older than July 1, 2019, includes copies of invoices, checks and accounts payable batch reports.

Cash Receipts: Cash receipt daily batches older than July 1, 2019, includes copies of daily detail and summary ledger reports, and cash receipts for utility billing (water, sewer and landfill), building permits, animal and business licenses, and all other cash receipts received by the City.

Payroll records: Payroll timecards, payroll bi-weekly cycle reports, registers and other payroll related and timecard processing information older than July 1, 2019.

Payroll annual and quarterly registers: Quarterly summary reports older than December 31, 2016, includes quarterly tax and gross wages summaries.

General ledger reports: Detail ledger listing of transactions, includes various sorts, periods and aggregations, older than July 1, 2019. Ledger data is active and retained electronically on the City’s ERP database, Accela since July 2019.

General ledger journal entries: Journal entry posting of adjustments to the general ledger older than July 1, 2019, does not include subledger interface posting from payroll, accounts payable, accounts receivable, cash receipts, utility billing, animal and business licensing.

Electronic backup media: Historical backup tapes and diskettes data from legacy financial systems, and or restoration tape drives where those systems are no longer in place, or active, and where software updates have made the backup data obsolete to restore.

Bank reconciliation: Bank statements, detail reconciliation work papers, cancelled checks, and treasurer’s monthly and quarterly reports older than July 1, 2019.

Dog license: Dog license records older than July 1, 2019, includes receipts, registration tickets, Yreka City Council Agenda
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sub-ledger registers list, billing and adjustments batches pertaining to dog licensing.

Business license: Business license records older than July 1, 2019, includes receipts, registration tickets, sub-ledger registers list, billing and adjustments batches pertaining to business licensing.

Water Accounts: Billing registers, customer correspondences, and other collection related information older than July 1, 2019.

Accounts Receivable: Invoice registers, collection receipts, aging lists and customer correspondences older than July 1, 2019; receivable collection includes landfill invoicing records and TOT tax records.

SECTION 2: The City Council hereby expressly determines that said records are no longer required and that the same have no historical value.

SECTION 3: In the event that any of the records referred to above include records affecting title to real property or liens upon real property, court records, records required to be kept by statute, records less than two years old, video or audio recordings that are evidence in any claim or pending litigation, or the minutes, ordinances or resolutions of the City Council or any City board or commission, those records shall be retained and are not authorized to be destroyed.

SECTION 4: The City Finance Director, City Treasurer and City Manager agrees that the proposed destruction are no longer needed and have no historical value presently known or appreciated by city staff.

SECTION 5: The City Attorney consents to the destruction of the Records; and SECTION 6: The City Council hereby expressly determines that said records are no longer required and may be destroyed.

PASSED AND ADOPTED this day of June 16, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Colleen Baker, Mayor
Consent is hereby given to the form and
content of the foregoing Resolution
Julia Homaechevarria, City Attorney
ATTEST:

Cyndy Prohaska, City Clerk
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CDBG Grant Program Closeout –
Grant No. 22-CDBG-ED-30045
Date: June 16, 2026
To: Yreka City Council
From: Juliana Lucchesi, AICP, Assistant City Manager
Attachments: 1. Executed Agreement with HCD (Grant No. 22-CDBG-ED30045) Recommended Actions:

Motion to authorize the City Manager, or their designee, to complete, sign, and file all necessary documents to close-out of CDBG Grant No. 22-CDBGED-30045 and disencumbrance of $340,767.62 to the California Department of Housing and Community Development.

Summary:

The City of Yreka was awarded $750,000 in Community Development Block Grant (CDBG) Economic Development funds (Grant No. 22-CDBG-ED-30045) to administer a small business grant program. The small business grant program provided financial relief for businesses impacted by State Highway 3 reconstruction. The program has concluded and this report presents closeout metrics for Council approval. A total of $409,232.38 was expended; $340,767.62 will be disencumbered and returned to HCD.

Background:

The City of Yreka received a $750,000 CDBG Economic Development award to provide direct grants to eligible small businesses. The purpose of the grant program was to alleviate financial strain on businesses impacted by the State Highway 3 project. The Shasta-Cascade Small Business Development Center (SBDC) was engaged to administer the program, including application design, underwriting, and technical assistance to applicants. HUD underwriting standards were applied, with a maximum award of $35,000 per business per program guidelines and public benefit requirements.

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Project Description:

The program provided direct grants to eligible small businesses in Yreka. Thirteen (13) grants were issued totaling $317,177.38 (78% of funds utilized). Administrative costs were $50,000 and Activity Delivery costs (application review, technical assistance, underwriting, and grant package paperwork) were $42,055, for a total program expenditure of $409,232.38. The average total cost per business assisted was $31,479.41 (average grant: $24,398.26; average admin: $3,846.15; average delivery: $3,235.00). The remaining $340,767.62 will be disencumbered. Not all available funds were expended because HUD underwriting standards capped awards and not all businesses qualified for the maximum grant. One business was declined due to three consecutive years of significant financial losses. Other businesses declined to apply or did not complete the application process.

Environmental Review:

Not applicable. This is a financial assistance program and does not trigger environmental review under CEQA.

Fiscal Impact:

Total program expenditure: $409,232.38 (funded entirely by CDBG). Direct business grants: $317,177.38. Administrative costs: $50,000. Activity Delivery costs:
$42,055. Amount to be disencumbered and returned to HCD: $340,767.62. There is no net fiscal impact to the City's General Fund.

Economic Impact:

The program delivered the following economic outcomes:

1. 13 grants issued to Yreka small businesses

2. 13 jobs created or retained (11.7 jobs required per HUD public benefit standard of 1 job per $35,000 spent)

3. 5 grantees were majority women-owned firms

4. 7 grantees were majority minority-owned firms

5. Grantee sectors: lodging (38%+), retail (31%), restaurants (23%), services (8%)

6. 2 businesses have since sold under new ownership; 2 businesses closed after meeting performance period requirements
Findings:

The CDBG Economic Development grant program successfully delivered financial assistance to 13 Yreka small businesses, exceeding the minimum public Yreka City Council Agenda
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benefit requirement of 11.7 jobs with 13 jobs created or retained. More than half of grantees were majority women- or minority-owned firms.

The most common barriers to participation were incomplete financial records or missing documentation, outstanding tax returns, SAM.gov registration issues or debarment, unwillingness to share personal financial information, and reluctance to engage with federal program requirements.

Common obstacles that prolonged application timelines included missing or incomplete records, tax extensions, SAM.gov debarment, code enforcement cases, and flood zone insurance requirements.

Review by Public & Outside Agencies:

The program was administered in coordination with the California Department of Housing and Community Development (HCD) and the Shasta-Cascade SBDC (NorCal SBDC Network). Executed agreements with HCD are attached.

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Authorization to Issue Letter of Support
– The HomeMore Project ERF Round 5
Application
Date: June 16, 2026
To: City Council
From: Juliana Lucchesi, Assistant City Manager
Attachments: 1. Draft Letter of Support – The HomeMore Project ERF Round 5 Recommended Actions:

Authorize the Mayor to sign the Letter of Support to the California Department of Housing and Community Development in connection with The HomeMore Project’s application to the Encampment Resolution Funding (ERF) Program, Round 5.

Summary:

The HomeMore Project has approached the City requesting a letter of support.

The letter would support the HomeMore Project’s application to the California Department of Housing and Community Development’s Encampment Resolution Funding (ERF) Program. The HomeMore Project, a 501(c)(3) nonprofit, proposes an 8-unit Permanent Supportive Housing (PSH) development at 1106 S Oregon Street in Yreka. The letter commits the City to policy compliance, cross-systems collaboration, and permitting support. The Letter of Support does not replace any required findings or approvals needed from the City to approve the final project.

The Applicant will be required to follow the same permitting processes as other private projects.

Project Timeline:

ERF Round 5 Window 1 closes June 30, 2026; awards anticipated September 2026.

Per NOFA requirements, grantees must expend at least 50% of funds within two years and 100% within four years of award.

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: Matthew K. Bray, Director of Public Works
Prepared by: Cynthia Lynch, Municipal Projects Manager
Agenda title: Discussion/Possible Action: Adopt Resolution No. 2026-20 Approving a List of Projects for Fiscal Year 2026/27 Funded by SB1: The Road Repair and Accountability Act
Meeting date: June 16, 2026
Recommendation and Requested Action:

That Council adopt Resolution No. 2026-20 approving a list of projects for Fiscal Year 2026/27 funded by SB1: The Road Repair and Accountability Act.

Discussion:

Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the State Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide.

The 2023 California Statewide Local Streets and Roads Needs Assessment found that Siskiyou County’s roads were, on average, in an at-risk condition. However, according to the draft countywide 2025 Pavement Management Plan report done through the Siskiyou County Local Transportation Commission (LTC), the City’s present overall Pavement Condition Index (PCI) shows the City’s local streets and roads have improved overall to the “good” condition category, due in part to the ongoing use of the Road Maintenance and Rehabilitation (RMRA) funding through SB1. The City plans to continue this effort to maintain and improve City-owned streets.

The City will be allocated an estimated $221,686 in RMRA funds for fiscal year 2026/27. In order to accept these funds and fulfill accountability and transparency provisions of SB1, a resolution listing the potential projects is required by the CTC before the list is submitted. The attached Resolution 2026-21 with the list of intended street coverage reflects City staff’s intention to carry over the Rubberized Chipseal Project.

Fiscal Impact:

The attached Resolution allows the City to receive SB1/RMRA funds for Fiscal Year 2026/27 in the approximate amount of $221,686 for the purpose of maintaining and rehabilitating local streets and roads.

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RESOLUTION NO. 2026-20

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA
ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026/27
FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY
ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $221,686 in RMRA funding in Fiscal Year 2026/27 from SB 1; and
WHEREAS, this is the tenth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has made public outreach and education a priority to ensure public input into our community’s street project priorities by holding public presentations regarding the City’s streets at City Council meetings, posting those presentations on the City’s website and social media pages, and posting City street maps demonstrating improvements in PMI; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate numerous streets/roads throughout the City this year and many similar projects into the future; and
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WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads were in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into “good” condition; and
WHEREAS, citizens of the City of Yreka depend upon a safe, reliable local street and road system; and
WHEREAS, the local street and road system is also critical for police, fire, and emergency medical services; farm to market needs; interconnectivity; multimodal needs; and commerce; and
WHEREAS, maintaining and preserving the local street and road system in good condition will reduce driving times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, restoring roads before they fail reduces construction time and costs; and

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Yreka, State of California, as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The following previously proposed and adopted project may also utilize Fiscal Year 2026/27 Road Maintenance and Rehabilitation Account revenues in its delivery. With the relisting of this project in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund this project with Road Maintenance and Rehabilitation Account revenues:

Project Title: Rubberized Chipseal Project
Project Description: Involves rubberized chip sealing of multiple streets in the City of Yreka to maintain good condition;
Project Location: City of Yreka, streets listed in Exhibit “A” to this Resolution; Estimated Project Schedule: Start July 2026, complete June 2027; Estimated Project Useful Life: 15 years.

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Section 4. The City Manager, the City Clerk and all other proper officers and officials of the City are authorized and directed to execute agreements, other documents and certificates, negotiate changes, 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 5. 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 affected 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 6. This resolution shall take effect immediately upon its passage.

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PASSED AND ADOPTED by the City Council of the City of Yreka this 16th day of June, 2026, 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 of Yreka
SB1 LSR-RMRA 26/27 FY
RELISTED: Rubberized Chipseal Project
UPDATED Prospective Streets for Improvement List:
*The following list is tentative; specific locations to be improved with SB1 LSR-RMRA funding have yet to be finalized. All locations will be determined taking time, street conditions and available funding into account.

UPDATE FOR FY 2026/27
Sections of:
• Yama St.
• Summit Ct.
• Hillcrest Dr.
• Park Pl.
• Prospect Ln.
• Oak St.
• Maple St.
• Northview Circle
• Discovery St.
• Payne Ln.
• W. Oberlin Rd.
• Kegler
• 4H Way
• Sierra Vista Dr.
• Sierra Vista Way
• E. Center St.
• Executive Ct.

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RESOLUTION NUMBER 2026-21

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA, STATE OF CALFIORNIA, UPDATING THE SIGNATORY OF THE “CALIFORNIA CLIMATE INVESTMENTS WILDFIRE PREVENTION GRANTS PROGRAM”
WHEREAS, the Governor of the State of California in cooperation with the California State Legislature has enacted State of California Climate Investment, which provides funds to the State of California and its political subdivisions for fire prevention programs; and WHEREAS, the State Department of Forestry and Fire Protection (CAL FIRE) has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing application by local agencies, non-profit organizations, and others under the program, and WHEREAS, the applicant will enter into an agreement with the State of California to carry out Yreka City Air Curtain Resource for regional agency, private, commercial waste fuel disposal and Yreka I5 Corridor Brush and Grassland fuel reduction project;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Yreka:

1. Approved the filing of an application for “California Climate Investments Wildfire Prevention Grants Program”; and

2. Certifies that said applicant has or will have sufficient funds to operate and maintain the project; and

3. Certifies that funds under the jurisdiction of City Council of the City of Yreka are available to begin the project.

4. Certifies that said applicant will expend grant funds prior to January 15, 2029, where all grant activities must be completed by March 15, 2029.

5. Appoints Will Ibershof, City Manager, or a designee, to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project.

The foregoing resolution was approved and adopted on the 16th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT: ________________________
Colleen Baker, Mayor
I, Cyndy Prohaska of the City of Yreka, witness my hand or the seal of the City of Yreka on the 16th day of June 2026.
_____________________________
Cyndy Prohaska, City Clerk
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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: John Elsnab, Human Resources Director
Agenda title: Discussion/Possible Action – Approve Resolution 2026-22 of the City Council of the City of Yreka Proposing an Increase of the Uniform Transient Occupancy Tax (Hotel Tax) of the City of Yreka to be Submitted to the Voters for Approval.

Meeting date: June 16, 2026
Discussion
As the City continues to provide essential services to the community, increased revenue streams are needed to maintain essential services, including public safety, parks and recreation programming, community events, and local economic development. Many of these services are funded through the General Fund, and have limited budget in order to enhance or maintain services for the community.

One option for increasing revenue is to consider an increase to the City’s Transient Occupancy Tax (TOT) for hotels and short-term rentals. The City’s current TOT rate is ten percent (10%), as established under Section 3.12.030 of the Yreka Municipal Code, and has not been increased since approximately 2006. Increasing the TOT would help support City services and could also assist with initiatives for funding city programs that are underfunded such as parks and recreation programing, community events, and developing a chamber of commerce to stimulate economic development.

City staff estimate that increasing the TOT rate from ten percent (10%) to twelve percent (12%) would increase General Fund revenues by $245,000 annually. The TOT primarily impacts out-of-town visitors who stay in the City for less than thirty days and does not typically directly tax Yreka residents. Additionally, the proposed two percent (2%) increase would align the City of Yreka’s TOT rate with the County of Siskiyou, which currently has a twelve percent (12%) TOT rate.

The proposed TOT increase was discussed at the March 25, 2026, Finance Committee meeting as part of a broader budget discussion. The Finance Committee agreed that the additional revenue would support essential General Fund services and help fund local projects and initiatives. The Committee unanimously supported moving forward with a proposal to increase the TOT rate to twelve percent (12%) and found the two percent (2%) increase reasonable, particularly given its alignment with other local agencies in Siskiyou County.

Local Agencies TOT Rate
County of Siskiyou 12%
Mt. Shasta 12%
Dunsmuir 12%
Weed 10% +2% TBID
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It is also recommended that Chapter 3.12 be amended to allow non-rate raising amendments and clarifications to the code by the City Council. This would also allow for the City Council to pause collection of the tax from time to time and resume collection without having to go to the voters to amend the code for such actions.

Fiscal Impact:

An increase in the Transient Occupancy Tax from ten percent (10%) to twelve percent (12%) is estimated to increase annual City revenues by approximately $245,000.

Recommendation:

Approve Resolution 2026-22 of the City Council of the City of Yreka proposing, on its own motion, the submission to the Electors of the City of Yreka at the November General Election, a Ballot Measure Proposal to Amend Sections 3.12.030 and add section 3.12.140 of the City of Yreka Municipal Code to Increase the Uniform Transient Occupancy Tax (Hotel Tax) from Ten Percent (10%) to Twelve Percent (12%)
Approved by: __________________________________
John Elsnab, Human Resources Director
Attachment:
• [Draft] Resolution
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RESOLUTION NO. 2026-22

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA

PROPOSING, ON ITS OWN MOTION, THE SUBMISSION TO THE

ELECTORS OF THE CITY OF YREKA AT THE NOVEMBER GENERAL

ELECTION, A BALLOT MEASURE PROPOSAL TO AMEND SECTIONS

3.12.030 AND ADD SECTION 3.12.140 OF THE CITY OF YREKA

MUNICIPAL CODE TO INCREASE THE UNIFORM TRANSIENT
OCCUPANCY TAX (HOTEL TAX) FROM TEN PERCENT (10%) TO
TWELVE PERCENT (12%)
WHEREAS, the City Council desires to submit to the electors of the City of Yreka at the General Election on November 3, 2026, a ballot measure proposal to amend Section 3.12.030 and to add section 3.12.140 of Chapter 3.12 of Title 3 of the Yreka Municipal Code to increase the amount of the Transient Occupancy (Hotel) Tax from ten percent (10%) to twelve percent (12%); BE IT RESOLVED by the City Council of the City of Yreka as follows:

Section 1. This Resolution is adopted pursuant to Government Code Section 53720, et seq.

Section 2. This Resolution may be cited as the "Uniform Transient Occupancy Tax Resolution of 2024."
Section 3. California Revenue and Taxation Code Section 7280 provides that cities may levy a tax on the privilege of occupying a hotel room or other lodging for not more than 30 days, called a "transient occupancy tax," commonly known as a "hotel tax.". Section

3.12.030 of the City of Yreka Municipal Code establishes the City's hotel tax at ten percent (10%). It is proposed that a general tax measure to increase the hotel tax to twelve percent (12%) be submitted to the voters of the City of Yreka at the election on Tuesday, November 3, 2026.

Such action is taken pursuant to California Constitution Article XIIIC, §2(b) which requires that any general tax be passed by a two-thirds vote of the legislative body, and by a majority of the voters voting in an election on the tax which is consolidated with a regularly scheduled general election of members of the governing body.

The Yreka City Council does hereby find that an increase in an existing general tax, specifically the hotel tax, by two percent (2%) and which will be collected by the operators of hotels as provided Chapter 3.12.030 of the City of Yreka Municipal Code, is in the best interests of the City of Yreka.

Section 4. The full text of the measure and the actual language of the proposed Ordinance is attached to this Resolution as Exhibit A and incorporated by reference in this Resolution.

The ballot measure will be placed on the ballot for the November 3, 2026, election in the following form:

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To provide funding (all funds used for local services)
for infrastructure and general City services, including, but not limited to, public safety, park and recreation
programming, community events, and local economic
development, shall the City increase the transient
occupancy tax (hotel tax) rate from 10% to 12% on
July 1, 2027, with an estimated increase of
$245,000.00 generated annually from the resulting tax
and will remain in effect until repealed or amended?
YES
NO
Section 5. The City Council finds and declares that this hotel tax is a general tax, for general governmental purposes, and not a special or ad valorem tax. This general hotel tax, which is deposited into the City's General Fund, pays for essential City services that benefit both residents and visitors. These services may include, but are not limited to fire protection, law enforcement, emergency response and preparedness services, facilities and equipment maintenance, and other general City services.

Section 6. This general hotel tax, if confirmed by the voters, shall be collected as provided in the Chapter of the City of Yreka Municipal Code and is estimated to generate an additional $245,000.00 annually.

Section 7. The proposed general hotel tax shall be submitted to the voters of the City of Yreka at the election to be included and consolidated with the Siskiyou County Special election held on November 3, 2026. Notice of the time and place of holding the election is given and the County Clerk is requested to give further or additional notice of the election, in time, form, and manner as required by law.

Section 8. This Resolution, being for the enactment and imposition of a general hotel tax, shall be submitted to a vote of the qualified voters at the election held on November 3, 2026. The hotel tax shall become valid and binding if a majority of the voters voting thereon vote in its favor at said election and shall become permanent, unless repealed or amended, and will be effective on July 1, 2027.

Section 9. The City Council hereby directs the City Clerk to take all actions necessary to submit the measure to the Registrar of Voters for placement on the November 3, 2026 ballot and facilitate the Special Municipal Election in the time frame specified herein and comply with provisions of the Elections Code of the State of California, City Charter, Ordinances, Resolutions and Policies regarding the conduct of the Special Municipal Election.

Section 10. The City Council hereby directs the City Clerk to: (a) pursuant to Section 12111 of the California Elections Code, cause a synopsis of the proposed measure to be published at least one time not later than one week before the election in a newspaper of general circulation within the City of Yreka; (b) cause the statement set forth in Section 9280 of the California Elections Code regarding notice of availability of a copy of the measure to be printed in the impartial analysis to be prepared by the City Attorney; and (c) do all other things required by law to submit the specified measure above to the electors of the City of Yreka at the general election, Yreka City Council Agenda
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including causing the full text of the proposed measure to be made available in the Office of the City Clerk at no cost and posted on the City Clerk’s website.

Section 11. Pursuant to Sections 9282 and 9285 of the California Elections Code, the City Council hereby approves the submittal of direct arguments for and against the ballot measure, if any, and authorizes James Clair and Paul McCoy to author and submit a ballot measure argument in favor of the ballot measure, and approves the submittal of rebuttal arguments in response to arguments for and against the ballot measure and authorizes Paul McCoy to author and submit a rebuttal, if any, on behalf of the City Council.

Section 12. The City Council hereby directs the City Clerk to transmit a copy of the measure qualifying for placement on the ballot to the City Attorney for preparation of an impartial analysis in accordance with Section 9280 of the California Elections Code.

Section 13. If any section, subsection, sentence, clause or phrase of this Resolution is for any reason held to be invalid, unconstitutional, or otherwise unlawful, by the decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution, the application thereof, and the general taxes imposed shall not be effected thereby but shall remain in full force and effect, it being the intention of the voters to adopt each and every section, subsection, part, clause, sentence, or phrase, regardless of whether any other section, subsection, part, clause, sentence, or phrase or the application thereof is held to be invalid or unconstitutional. The Yreka City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause, or phrase thereof irrespective of the fact that one or more of the sections, subsections, sentences, clauses, or phrases be declared invalid, unconstitutional, or unlawful.

IT IS FURTHER RESOLVED that the election be included and consolidated with the election on November 3, 2026.

PASSED, APPROVED, AND ADOPTED at a regularly scheduled meeting of the Yreka City Council, this 16th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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CITY OF YREKA
Colleen Baker, Mayor
ATTEST:

Cyndy Prohaska, City Clerk
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EXHIBIT A
BE IT ORDAINED BY THE PEOPLE OF THE CITY OF YREKA:

SECTION 1. Section 3.12.030 of Chapter 3.12 of Title 3 of the Yreka Municipal Code is hereby amended to read as follows:

3.12.030 - Tax imposed.

For the privilege of occupancy in any hotel, campground or recreational vehicle park, each transient is subject to and shall pay a tax in the amount of twelve ten percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the city, which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient ceasing to occupy space in the hotel, campground or recreational vehicle park. If for any reason the tax due is not paid to the operator, the city clerk shall require that such tax be paid directly to the city clerk.

SECTION 2. A new section is added to Chapter 3.12 of Title 3 of the Yreka Municipal Code, to be numbered, entitled, and to read as follows:

3.12.140 Amendment
Chapter XIIIC of the California Constitution requires voter approval for any amendment that would increase the rate of any tax levied under this Chapter 3.12 of the Yreka Municipal Code. The People of the City of Yreka affirm that the City Council may amend this Chapter to take the following actions because these actions shall not be an increase of the rate of a tax subject to voter approval:

A. The restoration of the rate of the tax to a rate that is no higher than that set by this Chapter, if the City Council has acted to reduce the rate of the tax; B. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Chapter;
C. The establishment of a class of person that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Chapter); or
D. The collection of the tax imposed by this Chapter, even if the City had, for some period of time, failed to collect the tax.

SECTION 3. This Ordinance shall be considered adopted upon the date that the City Council Yreka City Council Agenda
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certifies the results of the election, and shall go into effect on July 1, 2027.

SECTION 4. Should any provision of this Ordinance or its application to any person or circumstance be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable.

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Discussion on Mobile Home
Rent Stabilization Ordinance
To: City Council
From: Juliana Lucchesi, AICP
Recommended Actions:

1. Provide direction to City Staff on the Mobile Home Space Rent Stabilization Ordinance
Summary:

At the direction of City Council, staff investigated a mobile home space rent stabilization ordinance. The item was heard on December 2, 2025; Council provided feedback and requested additional information.

City Staff conducted an implementation analysis to review tasks required in the ordinance, determine appropriate staffing needs to implement the ordinance, and identify cost recovery areas where the City could mitigate fiscal impacts to the City.

Background:

On December 2, 2025, the City Attorney presented a draft mobile home space rent stabilization ordinance at the request of City Council. The ordinance outlines the purpose, applicability, and procedures around the assessment of rent to mobile home spaces. The City Council provided feedback and requested more information on the number of mobile home parks, number of spaces, and the impact to staffing to administer the program.

Mobile Homes in City Limits
The City of Yreka has seven mobile home parks that are registered with the California Department of Housing and Community Development (HCD). The location, number of spaces, and date established are provided in Table A.

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* No approval documents were located for the Yreka Lodge & Trailer Park. A 1981 building permit was issued for repairs on a trailer and mentions Yreka Motel and Trailer Court for the first time in city records. **No approval documents were located for Yreka RV Village. A 1985 sign permit application was approved to add Nichols Trailer Park sign which is the first mention of the mobile home park.

Park Name Park Address Date Established MH Spaces RV Lots WAIIAKA TRAILER HAVEN 240 SHARPS RD, YREKA, CA, 96097 1994 28 60 YREKA LODGE & TRAILER PARK 336 N MAIN ST, YREKA, CA, 96097 1981* 6 13 YREKA RV PARK 767 MONTAGUE ROAD, YREKA, CA, 96097, (530) 841-0100 2000 0 102 YREKA RV VILLAGE 1241 S MAIN ST, YREKA, CA, 96097, (530) 924-0697 1985** 38 0 EVERGREEN LANE MOBILE ESTATES 508 EVERGREEN LN, YREKA, CA, 96097, (530) 842-0852 1957 10 0 KRYSTAL GLEN 1010 DEER CREEK WAY, YREKA, CA, 96097, (206) 992-6901 1996 38 0 OAK RIDGE MOBILE ESTATES 400 HIRAM PAGE RD, YREKA, CA, 96097, (530) 842-4752 1967 100 8 Table A. City of Yreka Mobile Home Parks
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Fiscal Impact:

If passed, the proposed mobile home rent control ordinance would create a significant new set of ongoing responsibilities for City staff. Every year, staff would need to calculate allowable rent adjustments based on inflation data, notify all 403 affected mobile home tenants and park owners, collect and manage rent stabilization fees, and maintain records from each park's elected tenant representative. Every three years, staff would also be required to formally review the ordinance to determine whether it should continue. These recurring tasks are estimated to fall on the Finance and/or Community Development Department, or potentially a third-party contractoror, though contractor management would still require staff time.

Beyond the routine annual work, the ordinance would require staff to respond to an unpredictable volume of petitions and complaints — from park owners seeking rent increases above the standard limit, from tenants objecting to improvements or service reductions, and from either party requesting formal hearings. For each of these, staff must review filings for completeness, coordinate and schedule neutral hearing officers, collect fees, deliver certified mail notices, and track legal deadlines. Some of these tasks may require outside legal or engineering expertise.

The analysis also flags a concern that the ordinance does not clearly define how the City can recover its costs for hearing and petition processing, which Council should address before the ordinance is finalized.

The fiscal impact to the City of Yreka to implement this ordinance would be the cost of an additional 0.5 Full time employee under the Fiscal Administrative Technician job classification. This represents an increase cost to the Finance or Community Development Department ranging from $24,128.89 to $29,328.82. This cost range does not include Human Resources time for job posting, interviews, or onboarding.

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: City Council
From: Andrew L. Jared, City Attorney
Subject: Discussion of Mobile Home Space Rent Stabilization Ordinance Date: December 2, 2025
RECOMMENDATION:

Provide direction to staff on future action.

INTRODUCTION:

A mobile home space rent stabilization ordinance (MHRSO) applies to mobile home residents who own a mobile home and rent the site (space) in a mobile home park on which a home is placed. An MHRSO does not affect rent charged for the interior of a mobile home (coach) or any apartment or other dwelling unit in the city being rented out.

In response to a request by residents of mobile home parks in the City, the City Council requested that staff present a draft MHRSO for Yreka. Attached is a version of an ordinance based on the ordinance adopted and in use in the City of Novato. Certain dates are highlighted and will need to be modified after further analysis by staff.

As discussed in further detail below, an MHRSO regulates rent increases for the mobile home space only – not the coach -- while at the same time providing park owners with reasonable returns on their investment in the park.

As there are unknown costs associated with managing an MHRSO, and other options besides an MHRSO, this item is presented for discussion at this meeting, not introduction and formal adoption of an MHRSO.

DISCUSSION:

California Mobile Home Residency Law
In response to the special situation of mobile home park residents (whose homes are, practically, immobile), California has adopted some Statewide laws which provide special protections for mobile home park residents (California Civil Code Chapter 2.5: The Mobilehome Residency Law (MRL)). The MRL regulates rental agreements for mobile home spaces, park rules and regulations, and sale of mobile homes. The MRL does not regulate rent stabilization and leaves that up to Yreka City Council Agenda
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local jurisdictions but addresses three aspects of mobile home residency that bear upon the issue of rent stabilization:

1. First, the MRL requires park management to provide residents at least 90 days’ notice before implementing a rent increase.

2. Second, the MRL limits the reasons the park owner may use to terminate a lease of a mobile home space or deny its renewal to seven specific reasons:
(1) failure to comply with local or State law or ordinances; (2) annoying conduct to other homeowners or residents; (3) conviction for prostitution; (4) failure to comply with reasonable park rules and regulations; (5) nonpayment of rent, utilities, or other reasonable charges; (6) condemnation of the park by a public agency or utility; and (7) change of use of park or portion thereof. Management is required to specify any rule broken and give the resident seven days to correct the rule violation. If not corrected, management can start an unlawful detainer action to evict the tenant from the space. In general, the resident has the choice to sell the mobile home “in place” or remove it from the park, although the latter is typically impractical as moving costs can exceed the value of the home and there may be no place to move it to.

3. Third, the MRL allows cities to regulate those spaces held out for rent before January 1, 1990 and exempts from rent stabilization spaces with certain long-term leases over 12 months and spaces where the mobile home is not the owner’s principal residence and the mobile home has not been rented out to another party (i.e., vacation homes). It is the City’s understanding the certain mobile home parks in Yreka began operating before 1990, and so it appears likely that most of the spaces in Yreka could be subject to rent regulation.

Investment in Residence
Mobile homeowners, unlike apartment tenants or residents of other rental units, are in the unique position of having made a substantial investment in a residence which is located on a rented or leased parcel of land (the mobile home park) either through acquisition of a mobile home from a prior owner or through purchase of a new mobile home which is then assembled on-site or delivered there by the vendor. The investment commonly includes the purchase of the mobile home (varying in price depending on the size and amenities, up to $150,000 or more) and/or the cost of installing the mobile home on its space and installing related improvements, such as a foundation, carports, and integrated landscaping (depending on the job and local contractor costs, often $20,000 or more). Alternatively, the investment consists of the purchase of an “in-place” mobile home (varying in price from $40,000 to $155,000 depending on size, space rent, condition, and location). The mobile home owner rents a space in a mobile home park upon which the mobile home is located. The investments of mobile home park residents can only be realized by continuing occupancy in the mobile home or by an “in-place” sale/transfer of the mobile home since:

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• Physical relocation of mobile homes is costly;
• Relocation within other mobile home parks is difficult because there are frequently no vacant spaces in mobile home parks;
• Park owners generally will not permit older mobile homes to be moved into their parks when they do have vacant spaces for rent; and • The supply of mobile home park spaces in California is either stable or declining. Mobile home park construction in urbanized areas of California virtually ceased by the early 1980s as alternative land uses became more profitable and land use policies continually tightened restrictions on the construction of new mobile home parks.

Given the substantial investment by mobile homeowners in the physical structure of the mobile home but the lack of mobility or alternative options to move that physical structure from an existing mobile home park, mobile home park owners have unequal power over mobile home owners to charge high/excessive space rent increases.

Space Rent
In addition to the substantial investment made by the mobile homeowner (i.e., often a chattel loan payment similar to a mortgage payment), rent must be paid for a space in a mobile home park. While space rent is required to continue occupancy, just like an apartment, overall affordability of the housing depends on rent, utility and service charges, and the cost of the loan on the mobile home itself. Due to the unique nature of the mobile home space tenancies, the amount paid for space rent has a direct correlation to the value of the mobile home.

As space rents increase, the mobile home will depreciate in value (loss in equity) while the land value appreciates (gain in equity). The general industry rule of thumb is that for every $10 per month space rent increase, $1,000 in mobile home equity is lost. This is a key rationale why, besides State law, local laws have been incorporated regulating the rate at which space rents can be increased. Without regulation, park owners can strip homeowners of the values of their homes, sometimes buying them and placing them in the rental market or reselling them.

Rent Stabilization in Other Jurisdictions
The MRL does not provide for rent stabilization regulations, but leaves it up to local jurisdictions with some limitations, as discussed earlier. Over time, approximately 100 jurisdictions (out of 483 cities and 58 counties) in California have adopted some type of rent stabilization for mobile home park spaces to protect mobilehome owners to preserve the affordable housing which parks provide.

Most mobile home rent stabilization regulations in California apply to space rent alone. If a tenant were to rent a mobile home from either a private owner or a mobile home park owner, rental of the mobile home itself would not be regulated.

Local rules usually apply to all mobile home spaces in a city or county with exceptions for mandatory exemptions under State law (e.g., spaces built after 1990 and spaces used for vacation homes are exempt).

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Typically, the rent stabilization ordinances tie annual allowable rent increases to the percentage increase in the Consumer Price Index (CPI). The MRL also does not regulate rent increases in case of an “in-place” sale of a mobile home. This allows mobile home park owners to reset the rent at market in case of an “inplace” sale/transfer (vacancy decontrol). Most local ordinances adopted some type of vacancy control and do not permit additional rent increases or alternatively limit rent increases to 10 percent or less when a mobile home is sold in place. This prevents a loss of affordable housing and reduces incentives to encourage homeowners to move away.

Under all ordinances, park owners are entitled to petition for additional rent increases in order to obtain a fair return on investment, as required by the federal Constitution.

Options for City Council Consideration
Per the Council request, a draft ordinance has been prepared for consideration.

Options other than an MHRSO that have been considered by other cities include the following:
• Developing a Memorandum of Understanding between park operators and tenants to voluntarily address space rent concerns and park operator costs;
• Establishing a rent conciliation service instead of a rent control ordinance to help resolve disputes between landlords and tenants; or • Allow residents to vote on adoption of an ordinance through the initiative process.

Staff is available to address further questions regarding these options, and bring back additional information at a future meeting.

FISCAL IMPACT:

There is an indetermined costs associated with staff time to set up and manage the programs addressed in the ordinance, including the hearing process.

RECOMMENDED COUNCIL ACTION:

1. Receive staff presentation and review Council questions with staff;

2. Accept public comment; and

3. Provide direction to staff regarding further action
ATTACHMENTS:

Attachment 1 – Draft Rent Stabilization Ordinance
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Title 5 BUSINESS REGULATIONS AND LICENSES
Chapter 5.30
Sections:

5.30.010 Definitions.

For the purpose of this chapter, the following terms and phrases shall be defined as follows:
a. "Capital improvements" shall have the same meaning as is ascribed to that term in the United States Internal Revenue Code. Ordinary maintenance and/or repairs which are deductible pursuant to 26 U.S.C. Section 167 of the Internal Revenue Code are not capital improvements. b. "Consumer Price Index" or "CPI" shall mean the Consumer Price Index for all urban consumers in the San Francisco/Oakland area published by the Bureau of Labor Statistics. c. [Intentionally left blank.]
d. "Housing service" shall mean a service provided by the owner related to the use or occupancy of a mobilehome space, which is not a capital improvement as that term is defined herein, including but not limited to, repairs, replacement, maintenance, painting, lighting, heat, water, laundry facilities, refuse removal, recreational facilities, parking, security service and employee services. e. "Maximum allowable rent" shall mean the maximum amount of rent permitted to be charged a tenant for a mobilehome space under this chapter.
f. "Mobilehome" shall mean a structure, designed for human habitation and for being moved on a street or highway under permit pursuant to California Vehicle Code Section 35790, as defined in California Civil Code Section 798.3 as it may be amended from time to time. g. "Mobilehome park" or "park" shall mean any area of land within the City of Yreka where two or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
h. "Mobilehome space" shall mean the site within a mobilehome park intended, designed or used for the location or accommodation of a mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith.
i. "Owner" shall mean the owner or operator of a mobilehome park or an agent or representative authorized to act on said owner's or operator's behalf in connection with the maintenance or operation of such park.
j. "Rent" shall mean the consideration paid for the right of use, possession and occupancy of property, including the right to the use of a space within a mobilehome park on which to locate, maintain, and occupy a mobilehome, site improvements, and accessory structures for human habitation, including the use of the services and facilities of the park.
k. "Rent increase" shall mean any increase in rent charged by an owner to a tenant including any reduction in housing services without a corresponding reduction in the amount demanded or paid for rent.

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l. "Rent stabilization administration fee" shall mean the fee established from time to time by resolution of the city council in accordance with the provisions of the chapter. m. "Service reduction" means a decrease or diminution in the basic service level provided by the park occurring at any time since January 1, 2024, including but not limited to services the park owner is required to provide pursuant to:

1. California Civil Code sections 1941.1 and 1941.2.

2. The Mobilehome Residency Law, California Civil Code section 798 et seq.

3. The Mobilehome Parks Act, California Health and Safety Code section 18200 et seq.

4. The owner's implied warranty of habitability.

5. An express or implied agreement between the owner and the tenant. n. "Tenancy" shall have the same meaning as is ascribed to that term in California Civil Code section 798.12.
o. "Tenant" shall mean "homeowner" as the latter term is defined in Civil Code section 798.9. p. "Tenant-to-be" shall mean a person who is not currently a mobilehome space tenant in a mobilehome park but is a prospective mobilehome space tenant who desires the use of a mobilehome space as defined in this chapter and has presented themselves to the owner as such.

5.30.020 Applicability/Exceptions.
a. Except as otherwise provided hereinafter, the provisions of this chapter apply only to mobilehome parks which contain mobilehome spaces as defined in this chapter and to the mobilehomes within such parks.
b. No rent increases shall be permitted with respect to any mobilehome space after the adoption of this chapter, except as authorized by this chapter or applicable law. c. The right to institute rent increases permitted hereunder is subject to compliance with the notice provisions of the California Civil Code. In the case of rent increases authorized pursuant to section

5.30.090(a), (b), said notice shall contain that information required by the hearing officer. d. No owner may increase rents in accordance with section 5.30.050 at any time when a park is delinquent in payments of the rent stabilization administration fee required pursuant to this chapter and/or is not in substantial compliance with other registration requirements and/or is not in compliance with any court order or the California Health and Safety Code. e. Except for rental agreements entered into on or after January 1, 2026, mobilehome spaces covered by a rental agreement meeting the requirements of Civil Code section 798.17(b) are exempt from those provisions of this chapter pertaining to maximum allowable rents. f. New construction (newly constructed spaces initially held out for rent after January 1, 2011) is exempt from this chapter pursuant to Civil Code Section 798.45. g. After securing budgetary authorization from the city council and conducting the studies and investigations it deems appropriate and necessary, the city council may promulgate rules and regulations under which parks may be exempted from this chapter 5.30; provided, however, that said rules and regulations shall not exempt parks or owners from this chapter 5.30 unless the mobilehome space rents charged by the owner are less than that which would otherwise be allowed under this chapter.

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h. Rent charged for the subletting of a mobilehome shall not be subject to this chapter.

5.30.030 Purpose and Intent.

There is presently within the city a shortage of spaces for the location of mobilehomes. Because of this shortage, there is and has been a low vacancy rate in mobilehome parks in the city, and prior to the adoption of rent control in the City of Yreka, rents were increasing at rates which were causing hardships on the tenants of the parks, many of whom were and are on fixed incomes. Because of the high cost of moving mobilehomes, the potential for damage resulting therefrom, the requirements relating to the installation of mobilehomes, including permits, landscaping and site preparation, the lack of alternative home sites for mobilehomes and the substantial investment of tenants in such mobilehomes, the park owners enjoy unequal economic power vis-a-vis the mobilehome owners, creating a situation where, without rent control, park owners possess unbridled discretion and ability to exploit park tenants. For these reasons, among others, the city council finds and declares it necessary to protect tenants' investments in their mobilehomes by preventing park owners from unreasonably raising rents, not only during the tenant's tenancy in the park, but upon the sale or transfer of the tenant's mobilehome to a tenant-to-be, and to provide new tenants with protections from excessive rents, while at the same time recognizing the right of a park owner to receive a fair return on their investment.

5.30.040 Base Rent.
a. Except as provided in this chapter, an owner shall not demand, accept or retain rent for a mobilehome space exceeding the base rent which was the rent in effect for that space on January 1, 2026. If a previously rented mobilehome space was not rented on January 1, 2026, the base rent shall not exceed the rent in effect during the last month the space was rented prior to January 1, 2026, except as provided in this chapter. b. On the date the ordinance which enacts this chapter becomes effective, each owner may demand, accept and retain rent for mobilehome spaces whose rents are controlled by this chapter in an amount equal to the base rent.
c. Within 90 days after the adoption of this chapter, each owner shall provide notice to each tenant, as required under law, of the rent that may be charged and collected pursuant to this chapter.

5.30.050 General Rent Adjustments.
a. Each January 1, commencing with January 1, 2027, and ending with January 1, 2032, an owner may increase the rent charged for a mobilehome space by 75 percent of the percentage increase in the CPI occurring over the 12-month period immediately preceding the September 1 which immediately precedes January 1 of the year in which the increase is permitted under this subsection5.30.050(a). Each January 1, commencing with January 1, 2033, an owner may increase the rent charged for a mobilehome space by 100 percent of the percentage increase in the CPI occurring over the 12-month period immediately preceding the September 1 which immediately precedes January 1 of the year in which the increase is permitted under this subsection

5.30.050(a) or four percent, whichever is lower.
b. Each January 1, commencing with January 1, 2027, and ending with January 1, 2033, each owner shall decrease the rent charged for a mobilehome space by 75 percent of the percentage decrease in the CPI occurring over the 12-month period immediately preceding the September 1 which immediately precedes January 1 of the year in which the decrease is required under this subsection. Each January 1, commencing with January 1, 2034, each owner shall decrease the rent charged for a mobilehome space by 100 percent of Yreka City Council Agenda
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the percentage decrease in the CPI occurring over the 12-month period immediately preceding the September 1 which immediately precedes January 1 of the year in which the decrease is required under this subsection.
c. Annually the city shall calculate, as soon as CPI information is available which reflects the change for the periods described in subsections (a) and (b) above, the increase or decrease permitted or required hereunder, as the case may be, and provide notice to the tenants and owners in a fashion determined by the city to be reasonable. Any such increase or decrease shall be noticed to take effect and shall take effect on January 1 immediately following the notice. Failure to timely notice an increase shall waive the owner's right to increase the rent for the year in question pursuant to this section 5.30.050. Failure to timely notice a decrease shall not affect the efficacy of said notice, but to the extent rents were not decreased effective January 1 because of the dilatory notice, the owner shall adjust the rents charged for the period of time following the effective date of the notice so as to provide the tenants the full benefit of one year's reduced rent.

5.30.060 Limitations on Rent Increases.
a. The increases allowed by the terms of this chapter shall be applied equally to all mobilehome spaces subject to an increase as provided herein.
b. The owner, in calculating the amount of increase allowed or decrease mandated under section 5.30.050, shall apply the percentage increase as allowed or decrease as mandated in section 5.30.050 ("General Rent Adjustment") to the maximum allowable rent permitted to be charged on the December 31 immediately preceding the January 1 on which the increase is allowed or the decrease is required to determine the actual dollar increase.
c. The calculations showing the amount of anticipated increase or decrease and how the increase or decrease was determined shall both be posted for public viewing in the office of the park manager or an area where it can easily be seen by the tenants and a copy forwarded to the city. The accuracy of representations memorialized in said calculations shall be executed under penalty of perjury.

5.30.070 Pass Throughs.
a. Charges authorized by Civil Code Sections 798.41 and 798.49 to be separately charged to a tenant shall not be considered part of the rent controlled hereunder and shall be governed by the provisions of those code sections.

5.30.080 Vacancy Control.
a. No increase in rent shall be authorized by virtue of a change in occupancy of a mobilehome. For purposes of this subsection, "change in occupancy" shall include (i) any sale, transfer (by foreclosure, operation of law or otherwise), or other change in ownership of the mobilehome, any termination of the tenancy of the persons who are tenants of the mobilehome space by lawful eviction or voluntary vacancy or voluntary removal of the mobilehome (a removal of the mobilehome from the mobilehome space for the purpose of performing rehabilitation or capital improvements to the space or for the purpose of repairing or upgrading the mobilehome shall constitute a voluntary removal or vacancy), or any sublease by the tenant to a third party of the mobilehome or mobilehome space, and/or (ii) a change in the number or identity of the occupants of a mobilehome.

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b. Notwithstanding subsection (a) to the contrary, an owner shall be permitted to charge a new base rent for a mobilehome space whenever a lawful space vacancy occurs. For purposes of this section, a lawful space vacancy is defined to mean as follows:

1. A vacancy of the mobilehome space occurring because of the termination of the tenancy of the affected mobilehome tenant in accordance with the Mobilehome Residency Law, California Civil Code Sections 798.55 through 798.60, as amended; or

2. A vacancy of the mobilehome space arising from the voluntary removal of a mobilehome from the mobilehome space by the affected mobilehome tenant. A removal of the mobilehome from the space for the purpose of performing rehabilitation or capital improvements to the space or for the purpose of upgrading the mobilehome or purchasing a new, substitute mobilehome for occupancy by the same tenant shall not constitute a voluntary removal of the mobilehome. A removal of the mobilehome from the space for the purpose of performing repair and/or improvement to the space and/or for the purpose of repairing, maintaining or replacing the mobilehome due to the damage thereof shall not constitute a voluntary removal of the mobilehome.
c. When a new base rent is established following the vacancy of a mobilehome space pursuant to subsection (b), the owner shall give written notice to the new affected mobilehome tenant that the space rent may be subject to stabilized rent increases pursuant to the provisions of this chapter.

5.30.090 Individual Adjustments.
a. Application for Individual Adjustment.

1. Fair Return Petition. In the event a park owner contends that the general rent adjustment as provided in section 5.30.050, and the pass throughs provided in section 5.30.070 do not result in a just and reasonable return to the park owner, the park owner may file a petition for a hearing to determine the maximum allowable rent that will provide the owner a fair and reasonable return. Only one individual adjustment petition can be filed within a calendar year, unless the owner can establish "exceptional circumstances." For purposes of this subsection, "exceptional circumstances" shall mean that the inability of an owner to file more than one individual rent adjustment petition within said calendar year will immediately result in that owner being denied a fair and reasonable return without possibility that the adjustment which would otherwise have been sought could be sought and granted by way of a future rent adjustment petition otherwise permitted hereunder.

2. Fair Return Petition. The park owner shall complete and file with the city a petition containing the following information and supported by the following documentation, or otherwise permitted by law for that purpose. All financial data shall be shown in spreadsheet format (in Excel, or comparable computer generated format) and hard copy format. The petition must be signed under penalty of perjury attesting that the petition and its attachments accurately and completely reflect and show all (i) the individual items of costs and expenses incurred and (ii) the sources of all income received during the relevant period of time. The petition must be accompanied by payment of the fee set for this purpose by council resolution. Within 30 days of the city receiving the petition, the city shall determine if the petition is complete such that it provides the necessary information and otherwise complies with this subsection and within that 30-day period, the city shall mail to the owner the city's determination of completeness.

Said petition shall contain the following information and be supported by the following documentation:
(a) The name and address of the owner and the park.
(b) The number of mobilehome spaces in the owner's park.

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(c) The number of mobilehome spaces occupied by a mobilehome, recreational vehicle or other vehicle or structure and the nature of the vehicle or structure which occupies each said space. (d) The number and space identification of mobilehome spaces which the owner considers exempt from this chapter and the reasons why said exemption applies to each said space. (e) The number and space identification of the mobilehome spaces for which the owner seeks an individual rent adjustment.
(f) The amount of desired rent adjustment for each said space. (g) The amount of monthly rent charged for each mobilehome space in the park for each month in 2024 and for each of the 12 months immediately preceding the date upon which the petition is filed.
(h) The park's NOI (as defined below) for the base year, and the 12 months upon which the petition is based (the "petition year"). A "petition year" shall be from January 1 through December 31 of the relevant calendar year upon which a petition for an individual rent adjustment may be based. (i) A detailed itemization of all operating expenses and gross income upon which the base year NOI and the petition year NOI are based, including but not limited to: (1) an itemization of each amount billed or refunded to each tenant by space by month (e.g., the amounts billed for base rent, any NOI adjustments, the amount charged for the general adjustment under section

5.30.050, capital pass throughs, refunds and rebates); and (2) a description of the amount of income derived from the adjustments made to the rent by the owner pursuant to section

5.30.050 (general adjustment) and section 5.30.090 (individual petition) and how those amounts affect the petitioned-for adjustment.
(j) A detailed explanation of how each of the NOI's described in subsection (a)(2)(h) was calculated and determined.
(k) If the owner seeks an adjustment in the base year NOI pursuant to section 5.30.120(a)(2), a detailed explanation supporting said adjustment, supported by written or other reliable evidence.
(l) A statement stating whether the owner's rent adjustment is based on the presumption specified in section 5.30.120(a)(4), and, if not, a detailed statement describing the fair return standard, formula or criteria under which the owner believes its petition should be considered and why, based on that standard, formula or criteria, the rent adjustment which the owner seeks is justified.
(m) All petitions and the relief which they seek shall be supported by credible, complete and authenticated documents and writings, necessary to discharge the owner's burden of proof, where available and helpful to the hearing officer's decision-making. (n) In the event the owner has also sought tenants' consent pursuant to subsection (c), the owner shall state the amount of the rent increases for which said consent was sought and attach a copy of the notice, form of consent and documentation which was submitted to the tenants pursuant to subsection (c).
(o) In the event that the owner desires that the rent increase petitioned for become effective at the same time that a rent increase previously granted pursuant to this section is in effect, the owner shall state the approximate date or event upon which the owner desires the petitioned-for rent increase to become effective and the reasons therefor. The owner shall provide all the documentation necessary to support such a request. Unless such a request is made, it will be conclusively presumed that the rent increase sought by the petition shall take effect no earlier Yreka City Council Agenda
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than after the date upon which any and all rent increases previously granted pursuant to this section have expired.

At the time that an owner files an individual rent adjustment petition with the city, the owner shall also deliver to each tenant of a mobilehome space affected by the petition a copy of the petition. However, the documents and writings which support said petition need not be copied to each said tenant but ten copies thereof must be made available for inspection and copying by the tenants (at the tenants' expense) during the hours of 9:00 a.m. to 5:00 p.m., Monday through Friday, at some convenient place in the park, which said place must be noticed to the affected tenants at the time the copy of the petition is delivered to them.

3. Fair Return Petition. An application for an individual rent adjustment must be filed within six months after the end of the petition year upon which the application is based. Failure to make a timely application for an individual rent adjustment within six months after the end of any given petition year shall preclude the owner from seeking or obtaining any rent adjustment based on the income earned and/or expenses incurred by the owner during that petition year. Upon petition and for good cause shown, the hearing officer may grant extensions of said six-month period not to exceed an additional four months. Notwithstanding the foregoing, an individual rent adjustment application based upon the 2026 petition year may be filed no later than October 1, 2027.

4. Capital Improvement Petition. The owner may apply for an individual rent adjustment based solely on beneficial capital improvements, as defined herein below. Said application may seek approval of such an adjustment prior to or after the improvement is completed and paid for. However, if the application is submitted and approved prior to the completion of the improvement, any rent adjustment based on said improvement may not exceed the amount of adjustment approved by the hearing officer, and, if the actual costs of the improvement are less than that accepted and found by the hearing officer and upon which the hearing officer's decision adjusting rents was based, the rent adjustment shall be reduced by the owner accordingly.
(a) An owner who seeks an individual adjustment in rent for beneficial capital improvements shall submit a separate petition therefor. In the event that an owner petitions for an individual rent adjustment pursuant to subsection (a)(1) based on income and expenses earned and incurred, respectively, for a given calendar year, then any petition filed under subsection (a)(4) based upon beneficial capital improvements substantially completed during the same calendar year must be filed along with said subsection (a)(1) petition. If said petitions are filed together, they shall be heard and resolved together; provided, however, that the capital improvement cost petition shall be heard first; and, provided further, that if any proposed capital improvement cost is determined by the hearing officer to be an item of maintenance or repair or other operating expense, it shall be included in the subsection (a)(1) petition and should any cost item included in the subsection (a)(1) petition be determined by the hearing officer to be a capital improvement cost, it shall be included in the capital improvement cost petition filed pursuant to subsection (a)(4). If an owner applies for an individual rent adjustment pursuant to this subsection (4) unaccompanied by an application pursuant to subsection (a)(1), then the application submitted pursuant to this subsection (4) shall be the only application the owner may be permitted to file under this section within the calendar year described in subsection (a)(1), unless the owner can establish "exceptional circumstances" as defined in subsection (a)(1). If an owner applies for an individual rent adjustment pursuant to this subsection (4) unaccompanied by an application pursuant to subsection (a)(1) and the hearing officer determines that some or all of the capital improvements upon which said subsection (4) petition was based do not constitute capital improvements as defined herein, but instead, are items of expense and income which could have been the basis of an individual rent adjustment petition pursuant to subsection (a)(1), the owner shall have 60 days from the date the hearing officer renders said decision within which to file a Yreka City Council Agenda
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petition under subsection (a)(1) based upon said items of income and expense. The owner shall pay the appropriate fee for the filing and processing of said petition(s). (b) Except in emergencies, and notwithstanding anything to the contrary stated above, in the event that an owner wishes to petition for an individual rent adjustment based upon beneficial capital improvement costs, prior to filing said petition the owner must take the following steps:
(1) At least 30 days prior to: (i) the commencement of the construction or installation of the improvement (in those cases where the owner intends to petition for the adjustment after completion of the improvement); or (ii) filing the petition (in those cases where the owner intends to petition for the adjustment prior to the commencement of constructing or installing the improvement), as the case may be, provide written notice to each tenant that the owner intends to petition for a rent adjustment based on said capital improvement. (2) The notice shall include a description of the capital improvement, any reserves being used for same, the estimated cost of the improvement, an explanation as to how and why the improvement qualifies under this chapter for adjusting rents, when the improvement is likely to be completed, how much the tenant's rent will be adjusted by virtue of the improvement's cost, how long the adjustment will be in effect and the other matters specified in subsection (a)(4)(e), below.
(3) The notice shall also include a date, time and place where the owner shall meet with the tenants to discuss the notice and the proposed capital improvement and rent adjustment based thereon. The date and time of the meeting shall be convenient to the tenants and shall occur within said 30-day period, but no earlier than 14 days after the notice is delivered to the tenants. The notice may also solicit the consent of each affected tenant to the adjustment, and if so the notice shall contain the information and the owner shall comply with the provisions of subsection (c). If the owner invokes the procedures specified in subsection (c), the meeting specified herein shall be set before the tenants are required to submit their consents described in subsection (c)(5). The meeting place shall be located on the mobilehome park. The owner shall bring to the meeting any and all documents and other tangible evidence supporting the rationale for the capital improvement and its cost.

The sole purpose of said notice and meeting shall be to inform the tenants of the matters described above and for the owner to receive comments from the tenants respecting same. (c) Amortized costs of beneficial capital improvements exceeding existing reserves for replacement, plus a reasonable return (i.e., interest) thereon, shall be considered part of the rent, and at the option of the owner, may form the basis of an individual rent adjustment pursuant to subsection (a)(4), on a pro-rata basis based on the number of mobilehome spaces in the park. In the event the petition for a rent adjustment pursuant to subsection (a)(4) is granted in its entirety, the hearing officer shall include in their award the costs the owner incurred in filing and prosecuting the petition, including fees paid to the City, fees paid to consultants and experts in connection with the petition and amounts paid to reimburse the hearing officer, but excluding owner's attorneys' fees incurred in connection with filing and prosecuting the petition (collectively, "petition expenses"). Said petition expenses, together with an appropriate rate of interest, shall be amortized for the longest amortization period applicable to the improvements upon which the petition was brought and collected as rent. In the event the petition for a rent adjustment pursuant to subsection (a)(4) is only partially granted, the hearing officer shall include in their award a portion of the owner's petition expenses in an amount left to the sound discretion of the hearing officer. Such capital improvement costs, petition expenses and return, if the basis for a rent adjustment pursuant to subsection (a)(4), shall not constitute a factor to be considered in determining fair return under subsections 5.30.090(a)(1) and 5.30.120, below (the individual rent Yreka City Council Agenda
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adjustment), nor shall they be considered part of the rent base upon which future rent increases can be made in accordance with section 5.30.050 (the "general rent adjustment"). That portion of the rent which is charged to cover said amortized capital improvement costs, petition expenses and return thereon, shall be separately stated on the monthly rental statement, along with the date when said charge shall be omitted from the statement and no longer billed to the tenant.
(d) For purposes of this chapter, "beneficial capital improvements" shall generally mean a capital improvement required to assure that the common facilities and areas of the park are decent, safe, and sanitary or to assure the continuation of the existing level of park amenities and services:
(1) Distinguished from ordinary repair or maintenance;
(2) For the primary benefit, use, and enjoyment of the tenants; (3) Not coin-operated nor one for which a "use fee" or other charge is imposed on tenants for its use;
(4) Amortized on a straight-line basis and charged to the tenant over the remaining useful life of the improvement (the remaining useful life of the improvement shall be determined in accordance with applicable or the most applicable IRS rules and regulations); (5) Not maintenance of the infrastructure of gas or electrical lines or facilities within the mobilehome park for which the public utility has permitted the owner a special premium with the intent that it be used to replace or otherwise maintain the system within the mobilehome park; and
(6) Notwithstanding the foregoing, shall include alterations to structures required by governmental officials or mandated by applicable building codes. (e) An application for an individual rent adjustment based on beneficial capital improvement costs shall include the following:
(1) A description of the nature of the improvement;
(2) An explanation as to why it falls within the category of a beneficial capital improvement; (3) An explanation showing why the improvement meets all of the criteria set forth in subsection (a)(4)(d);
(4) Why the improvement was necessary at the time it was effected or is proposed to be effected;
(5) Whether there are any capital reserves and/or insurance proceeds which are being used to pay for the improvement, and, if so, what amount is being so used; (6) A statement of the depreciation schedule upon which the owner is basing their monthly rental increase and the longevity of that increase; and the rationale for selecting that schedule;
(7) An explanation as to why the improvement was not implemented previously and whether the costs of the improvement have been affected by the owner's delay in implementing the improvement at an earlier time; and
(8) A detailed itemization of all the costs incurred or estimated to be incurred in completing the improvement and copies of all invoices and canceled checks, or other evidence, if any, showing payment thereof.

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(f) In the event that the capital improvement cost is necessitated as a result of an accident, disaster or other event for which the park owner received insurance benefits, only those capital improvement costs otherwise allowable exceeding the insurance benefits may be calculated as part of the permitted rent adjustment.
(g) Any petition or application for a rent adjustment brought pursuant to subsection (4) and applicable to a completed beneficial capital improvement must be filed no later than six months after the end of the calendar year in which the improvement was substantially completed. Failure to timely apply under subsection (4) for a rent adjustment based upon a beneficial capital improvement shall prevent the owner from applying for a rent adjustment under subsection (4) based on that improvement. Upon petition and for good cause shown, the hearing officer may grant extensions of said six-month period not to exceed an additional four months.

Notwithstanding anything stated to the contrary in this subsection (4)(g), an owner may petition for an individual rent adjustment based on capital improvement costs incurred during two, consecutive calendar years as long as: (a) the aggregate costs of said improvements do not exceed fifty thousand ($50,000) dollars; (b) the petition is filed within six months after the end of the second calendar year; and (c) if a subsection5.30.090(a)(1) petition is filed during said sixmonth period, then the capital improvement petition described in this sentence must accompany said subsection 5.30.090(a)(1) petition.
(h) All financial data supporting a petition filed under subsection (a)(4) shall be shown in spreadsheet format (in Excel, or comparable computer generated format) and hard copy format. The petition must be signed under penalty of perjury attesting that the petition and its attachments accurately and completely reflect and show all the information set forth in subsection (a)(4)(e).

The petition must be accompanied by payment of the fee set for this purpose by council resolution. Within 30 days of the city receiving the petition, the city shall determine if the petition is complete such that it provides the necessary information and otherwise complies with this subsection and within that 30-day period, the city shall mail to the owner the city's determination of completeness.

5. Capital Improvement Petition. At least annually, and preferably at the same time that the owner notifies the tenants of the annual adjustment in rents permitted pursuant to section 5.30.050, the owner shall deliver to each tenant a written description of the owner's estimate of the nature and cost of proposed and/or anticipated beneficial capital improvements to be completed over the next, succeeding five calendar years. The description shall be prepared in good faith. The purpose of this section is to provide information to tenants. The capital improvements specified in the plan described herein shall not be binding upon the owner.
b. Hearing Officer.

1. The city shall appoint an administrative hearing officer to hear any individual adjustment petition. The following procedure shall be used in making said appointment:
(a) The city shall solicit applications for the position of hearing officer. From those who submit applications, the city manager or theirtheir designee shall appoint the persons to the hearing officer position. There shall be no limit to the number of appointments, and as appointees resign or as additional persons make application for the position, the city staff may supplement the eligible list of hearing officers.
(b) From the list of eligible and appointed hearing officers, the city staff shall select, on a rotating basis to the extent practicable, the one hearing officer to hear and decide each individual adjustment petition or complaint, as the case may be.
(c) The city may consider the following criteria in selecting the hearing officer.

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(1) Expertise in rental disputes and issues.
(2) Legal experience.
(3) Business and professional experience.
(4) Education and training in dispute resolution.
(5) The fee requested by the nominee.

2. The hearing officer shall have no conflict of interest.

3. Except as provided in subsections 5.30.090(a)(4)(c) and 5.30.090(d)(2)(a), petitioner shall bear the cost of the hearing officer. After receipt of a petition or complaint, the city shall notify the petitioner or complainant (collectively referred to herein as "petitioner") of the city's selection of the hearing officer, the estimated costs of the hearing officer and the hearing and, if applicable, request payment for said costs. Within ten business days of the city's mailing notice of the selected hearing officer and requesting payment of the estimated costs, the petitioner shall deliver payment of the hearing officer's and hearing's estimated costs to the city. After notice to the petitioner, failure to timely pay the hearing's estimated costs shall be deemed a withdrawal of the petition or complaint. In the event that the actual costs of the hearing exceed the estimated costs, the petitioner shall, within ten days after receipt of notice to do so, shall pay the difference to the city. If the petitioner is an owner, failure to pay the hearing officer's final fee bill shall preclude the owner from implementing any and all future general adjustment rent increases provided under section 5.30.050 until said bill is fully paid. If the petitioner or complainant is a tenant, failure to pay the hearing officer's final fee bill shall delay implementing any and all relief, including reductions in rent, awarded to the tenant until said bill is fully paid.
(a) Except as provided in subsections 5.30.090(a)(4)(c) and 5.30.090(d)(2)(a), the petitioner or complainant shall bear the entire cost of the hearing officer and the hearing. c. Tenant Approval of Rent Increase Avoids Hearing Process.

1. This subsection shall only apply to proposed rent increases other than those authorized under section

5.30.050 (General Rent Adjustments) or section 5.30.070 (Pass Throughs).

2. In the event that an owner wishes to increase rents the owner may follow the procedures set forth in this subsection instead of or in addition to those specified in the balance of this section; provided, however, that no rent increase sought to be imposed pursuant to this subsection (c) shall be effective unless and until subsection (c)(4), below, has been timely complied with.

3. Any owner desiring to increase rents pursuant to this subsection (c) shall deliver to each tenant whose rent the owner proposes to increase a notice containing the following information: (i) the amount of the monthly rent increase; (ii) a detailed statement explaining the justification for the increase; (iii) whether the rent increase will be permanent or temporary, and if the latter, the date upon which the increase will cease; and (iv) the date the owner proposes to make the increase effective. The owner shall also provide to each affected tenant copies of all unprivileged writings which support the proposed increase in rent. The notice shall also disclose to the tenants that the owner is seeking a rent increase pursuant to this subsection (c), attach a copy of this subsection (c) to the notice and include with the notice the consent form described in subsection (c)(5), below.

4. If, within 21 days after said notice of the proposed rent increase is last served on the tenants, the park owner files with the city a writing or writings (the "consent"), signed by at least a majority of the tenants in the park who are subject to rent control and affected by the proposed rent increase consenting to the rent increase, the rent increase may take place after the owner has given notice pursuant to state law.

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5. For purposes of subsection (c), each mobilehome space shall be counted as one vote for determining whether the percentage specified in subsection (c)(4), above, has been met. Notwithstanding anything to the contrary stated above, in the event that a mobilehome space is vacant, that space shall not be counted for purposes of this subsection (c); and provided further, that in the event that a mobilehome space is occupied with a mobilehome but the mobilehome is unoccupied at the time that the notice described in subsection (c)(3), above, is distributed to the tenants, the park owner shall be obligated to exercise good faith and due diligence in locating the occupant of the mobilehome and providing them the required written notice within the said 21-day period. If the owner has timely exercised good faith and due diligence in notifying said absent occupant and securing said absent occupant's consent but said absent occupant cannot be located or is not notified as required hereunder, then said occupant's mobilehome space shall not be counted for purposes of this subsection (c). The consent shall contain the following: (i) a statement that the signing tenant agrees to the rent increase described in the consent; (ii) the amount of the increase; (iii) the reason for the increase; (iv) when the increase is proposed to take effect; and (v) when the increase will be discontinued, if at all.

6. In the event a majority of the tenants do not, in writing, timely consent to said proposed rent increase, the owner shall be required to apply for an individual rent adjustment pursuant to this section 5.30.090 before any rent increase covered by the notice described in subsection (c)(3) is permitted or becomes effective.
d. Tenant Initiated Improvement Request.

1. The designated tenant representative ("DTR") (defined below) may, in writing, request the owner to effect, install or construct an improvement of any kind. However, prior to making such a request, the DTR shall provide written notice to all the tenants whose space rents are regulated by this chapter soliciting their approval of the proposed improvement. The notice shall include a description of the improvement and its location, the estimated cost of the improvement, the estimated time of its completion, the period of time over which the improvement will be amortized, the interest rate to be applied to the estimated cost, the amount of rent increase proposed to cover these costs and the period of time during which the increase will be in effect ("request notice"). The request notice shall specify a deadline by when the tenants must respond to the DTR (no less than 30 calendar days from the request notice's delivery to the tenants) and how the tenants' responses are to be delivered to the DTR.
(a) In the event less than a majority respond in favor of the proposal, then the DTR shall not request the owner to make the improvement; and the DTR shall not solicit approval from the tenants for the same improvement for at least one year thereafter.
(b) In the event that a majority of the tenants respond in favor of the proposal, then the DTR shall submit the proposal to the owner and the owner shall consider the proposal in good faith.

2. If the owner and DTR are able to reach an agreement on the nature, timing, cost and rent increases involved in effecting the improvement requested by the DTR, that agreement ("DTR/owner agreement") shall be memorialized in some written form, and signed by the owner and DTR. That agreement shall not be significantly different from the terms and conditions specified in the request notice. The DTR shall then deliver a copy of that agreement to the tenants whose space rents are regulated by this chapter, accompanied by a notice advising the tenants that they have 30 calendar days within which to object and deliver to the DTR, in writing or by email, their objection to the agreement's terms and conditions. If no tenant timely objects to the improvements, the owner may commence installation or construction of the improvement and shall be entitled to adjust the rents charged to the tenants in accordance with the agreement. (a) If a tenant timely delivers objections to the agreement and installation/construction of the improvement, s/he must do so in writing delivered to the city manager, with copies delivered to Yreka City Council Agenda
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the DTR and the owner within the 30-day period specified in subsection (d)(2). Said objection must explain in detail the reasons for the objection and request a hearing pursuant to section

5.30.100. Said hearing shall be governed by sections 5.30.090 and 5.30.100; provided, however, that the prevailing party shall be entitled to an award of costs and attorneys' fees incurred in connection with the hearing.

3. Any rent increase agreed to by the tenants, DTR and the owner pursuant to this subsection 5.30.090 shall be treated in the same fashion as the rent increases described in subsection 5.30.090(a)(4)(c). In the event that the actual cost of the improvement exceeds the estimate specified in the DTR/owner agreement, the owner shall absorb the difference. In the event that the actual cost of the improvement is less than the estimate specified in the DTR/owner agreement, the rent increase shall be reduced to reflect the actual, lower costs, plus interest.

5.30.100 Hearing Procedures.
a. Hearing Officer's Authority.

At rent adjustment hearings or complaint hearings, the hearing officer(s) shall have the right to:

1. Administer oaths and affirmations.

2. With the written concurrence of the owner and affected tenants, cause inspections to be made of the mobilehome park for which a rent adjustment is sought.

3. Rule on offers of proof and receive relevant evidence.

4. Control the course of the hearing.

5. Rule on procedural requests.

6. Render decisions on applications for individual rent adjustments and complaints.

7. Take other action authorized by this chapter and/or the rules and regulations adopted by the city. b. Notice of Hearing.

At least 14 days prior to the hearing, notice shall be delivered in person or by mail to the parties advising the parties of the date of the hearing. The hearing officer, at the request of any party, may schedule a pre-hearing conference with the parties and/or their representatives in order to discuss the issues to be resolved at the hearing, require the submission of documents before the hearing, encourage stipulations by the parties on uncontested facts, discuss proposed witnesses and, if the parties so request, attempt to arrive at a mutually acceptable, voluntary agreement resolving all issues raised in the petition or complaint. The hearing officer may ratify the parties' voluntary agreement and adopt it and make it a final decision of the hearing officer. The city shall not subsequently accept a petition or complaint involving the same parties (or similarly situated parties who were sent notice of the petition or complaint and the hearing and/or conference, as the case may be) and based upon substantially the same facts which form the basis of the petition or complaint which resulted in the voluntary agreement. In the event that such an agreement is not reached, among other things, the pre-hearing conference will have as its purposes the determination of a hearing date and the nature of the evidence, if any, required to be submitted and provided by any party to the proceedings. The costs of the pre-hearing conference, including the hearing officer's fee, shall be paid by the party required to pay for the hearing officer and other hearing costs pursuant to section 5.30.090(b)(3).
c. Conduct of Hearing.

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The hearing on a petition for individual rent adjustment or complaint shall be conducted in a manner deemed most suitable to insure fundamental fairness to all parties concerned, and with a view toward securing all relevant information and material necessary to render a decision without unnecessary delay. d. Evidence Rules.

The hearing need not be conducted according to technical rules of evidence. Any relevant evidence shall be considered if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions. Unduly repetitious or irrelevant evidence shall be excluded upon order by the hearing officer. Oral evidence shall be taken only on oath. e. Order of Proceedings.

The hearing on an application for individual rent adjustment shall ordinarily proceed in the following order:

1. Presentation by or on behalf of petitioner, including calling any witnesses on behalf of the petitioner.

2. Presentation by or on behalf of opponents to the petition, including calling any witnesses on behalf of the opponents.

3. Rebuttal by petitioner.

4. Sur-rebuttal.
f. Speaker's Presentation.

Each speaker's presentation shall be to the point and shall be as brief as possible; visual and other materials may be used as appropriate. The hearing officer may establish reasonable time limits for presentations, which time limits will be made known prior to any hearing.
g. Right of Assistance.

All parties to a hearing may have assistance in presenting evidence and developing their positions from attorneys, legal workers, tenant organization representatives, owner association representatives, or any other persons designated by said parties.
h. Hearing Record.

The hearing officer(s) shall keep on file an official record, which shall constitute the exclusive record for decision. Hearings shall be audiotaped. Said tapes shall be preserved by the city as part of the record of proceedings.
i. Decision.

1. No individual rent adjustment shall be granted unless supported by the preponderance of the evidence submitted at the hearing. The hearing officer shall have the authority to deny a petition for an individual rent adjustment consistent with this chapter and applicable law.

2. After reviewing the record and any additional evidence requested of the parties which has been provided, the hearing officer shall determine the amount of allowable rental increase, if any, in accordance with the standards of section 5.30.120, and the increase, if any, shall be effective after the owner gives the tenants notice as is required under law. Except for adjustments granted pursuant to section 5.30.090(a)(4) and adjustments which, based on specific findings (supported by a preponderance of the evidence) made by the hearing officer that expenses have a strong likelihood of remaining the same or increasing for the indefinite future, the hearing officer determines to be permanent, any individual rent adjustment granted hereunder shall be in effect for only one year after the increase (after due noticing) becomes effective. Notwithstanding anything to the contrary stated herein above, unless expressly permitted by the decision of the hearing officer and only to the extent Yreka City Council Agenda
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permitted by the hearing officer, any rent increase granted by the hearing officer pursuant to section

5.30.090 (the "subsequent rent increase") shall, at the time that it becomes effective (after due notice to the tenants) be reduced by the amount of any rent increase previously granted pursuant to section

5.30.090 ("first rent increase") which is still in effect at the time the subsequent rent increase becomes effective. Said reduction shall remain in effect only for so long as the first rent increase is in effect. The decision shall specify the earliest date or event upon which any rent increase granted by the decision may become effective and the reductions, rebates or offsets which apply to such rent increase.

3. Unless otherwise agreed to by the petitioner or for good cause shown, the hearing officer shall render a written decision within 120 days after the date the petition is determined complete by the city, supported by findings of fact and conclusions of law.

4. The hearing officer's decision shall notify the parties to the hearing of their rights under California Code of Civil Procedure section 1094.6. The decision of the hearing officer shall be mailed to the owner and all affected tenants, certified, return receipt requested. j. Challenge to Decision.

The decision of the hearing officer rendered in accordance with this section shall be final and binding upon the owner and all affected tenants; provided, however, that within 30 days after the hearing officer's decision is mailed pursuant to subsection (i)(4), the owner and/or the affected tenants may, in writing, request that the hearing officer rehear the matter. The request shall contain all of the reasons and evidence supporting the request and be accompanied by a fee equal to two times the daily fee established by council resolution for hearing officers.

Within 10 days of receiving said request, the hearing officer shall render a written decision granting or denying the request. If the rehearing request is denied, the original decision of the hearing officer, modified by the hearing officer's decision denying the rehearing request, shall be final and binding upon the parties and shall be deemed decided upon the date of the hearing officer's mailing of the denial of the rehearing request. If the request for rehearing is granted, the hearing officer shall schedule a new hearing on the matter, and the party seeking the rehearing shall bear and pay for all costs of the rehearing in the same manner and under the same rules applicable to the initiation of a hearing under this section 5.30.010. No further requests for rehearing shall be entertained after one such request has been granted or denied with respect to the matter in controversy. The party seeking rehearing shall bear and pay for all of the hearing officer's and rehearing costs. The final decision of the hearing officer shall be subject to the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6.

5.30.110 Settlement Procedures.
a. At least ten days prior to the date of the hearing noticed pursuant to subsection 5.30.010(b), the petitioning tenant, the designated tenant representative and/or the owner, as the case may be, may submit a written offer to the other party to settle the claims or requests made in the petition and to allow a decision or award to be made in accordance with the terms and conditions stated in the offer. The written offer shall include a statement of the offer, containing the terms and conditions of the award or decision which the offering party is willing to accept, and a provision that allows the accepting party to indicate acceptance of the offer by signing a statement that the offer is accepted. At the same time that the offering party submits its offer to the other party, the offering party shall also file a copy of the written settlement offer with the city clerk in a separately sealed envelope, with a statement on the outside of the envelope identifying the offeror and stating that it is a written settlement offer submitted pursuant to this section. Any acceptance of the offer must be in writing and shall be signed by the counsel for the accepting party or, if not represented by counsel, by the accepting party (under this chapter, either the petitioning tenant, the owner or the designated tenant representative).
b. If the offer is accepted, the parties shall notify the city manager and the hearing officer and the hearing officer shall enter the accepted offer as the final decision of the hearing officer respecting the petition.

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c. If the offer is not accepted prior to the hearing date or within seven calendar days after the offer's receipt by the opposing party, whichever occurs first, it shall be deemed withdrawn and cannot be given in or considered as evidence in the hearing. Said hearing date and said seven-day period may be continued and enlarged, respectively, upon written stipulation of the parties, subject to the hearing officer's approval. Any such continuance or enlargement shall not be counted against the 120-day period specified in subsection

5.30.010(i)(3).
d. The sealed copy of the written settlement offer that is so filed with the city is not to be opened by the city until it is either timely accepted by the opposing party or, if it is not timely accepted by the opposing party and deemed withdrawn, the offer shall be opened after the hearing officer has rendered a final decision on the petition.
e. If an offer made pursuant to this section is not accepted and the rejecting party fails to obtain a more favorable award or decision, the rejecting party shall not recover his or her post-offer legal expenses and shall pay the legal expenses incurred by the offering party from the time of the offer. If competing offers to settle are timely submitted but have not been timely accepted, the hearing officer shall determine which party has failed to obtain a more favorable decision or award and assign responsibility for the payment of legal expenses accordingly.
f. That assignment of responsibility shall be memorialized in a "notice of assignment of legal expense liability" ("legal expense notice") and mailed and emailed to the parties and the DTR within seven days after the hearing officer has issued their their final decision on the petition. Within seven days of theirtheir receipt of the legal expense notice, the parties shall submit written requests for the awarding of and an accounting of their legal expenses and serve those requests on the hearing officer, and all parties by regular mail and electronic mail. Said requests shall include detailed records of fee billings, time records and supporting declarations executed under penalty of perjury. Within seven days of receiving the requests, opposing parties may file objections to those requests and serve said oppositions in the same fashion as the original requests were served. Within seven days of the date that oppositions are served or within seven days of the deadline for the filing of oppositions, if none is submitted, the hearing officer shall submit a proposed supplemental decision stating the amount of legal expenses each party is required to pay and the reasons therefor.

1. When issued by the hearing officer, said supplemental decision shall become final in seven days after the proposed decision, unless either party requests an evidentiary hearing within said seven days, in which case a final decision shall be made within seven days after the hearing is concluded. Scheduling of the hearing shall be left to the sound discretion of the hearing officer. For purposes of any challenge to the hearing officer's decisions, the hearing officer's decision shall become final upon the mailing, with proofs of service, to all parties of (a) the hearing officer's final decision on the merits of the petition, or (b) the hearing officer's final decision on the awarding of any legal expenses, whichever occurs last. The 120 day time period specified in subsection 5.30.010(i)(3) shall not apply to the supplemental decision described herein.

2. In his or her discretion, the hearing officer may reduce or offset from any award made in favor of the petitioner on the petition the amount of legal expenses that petitioner may be required to pay to another party as a result of the operative effect of this section. g. Subject to subsection (f)(2) of this section, any award of legal expenses that is made against a party as a result of the operation of this section shall be separated out and invoiced by the park owner separately from any NOI rent increase award, beneficial capital improvement rent increase award, or reduction in services award as a separate, limited time pass-through. Such legal expenses shall be amortized and recovered in equal monthly payments over a five-year period (plus interest) unless the hearing officer concludes that a different period is more reasonable, and shall be eliminated after payment is completed at the end of the amortization period. In the case of a rent reduction petition submitted pursuant to section 5.30.175, where Yreka City Council Agenda
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the owner is required to pay legal expenses to the tenants as a result of rejected settlement offers, the owner's obligation to pay said legal expenses shall be amortized and paid in equal monthly payments over a five-year period (plus interest) unless the hearing officer concludes that a different period is more reasonable, and shall be extinguished after payment is completed at the end of the amortization period. In the cases of an NOI petition filed pursuant to subsections 5.30.090(a)(1)—(3) where the owner is required to pay legal expenses to the tenants as a result of rejected settlement offers, and the amount owed to the tenants has not been used to offset or reduce any landlord recovery pursuant to subsection (f)(2) of this section, the owner's obligation to pay said legal expenses to the tenants shall be amortized and paid in equal monthly payments over a five-year period (plus interest), unless the hearing officer concludes that a different period is more reasonable, and shall be extinguished after payment is completed at the end of the amortization period.
h. In determining whether a party "has obtained a more favorable award or decision" than that proffered in a settlement offer not accepted by that party, the hearing officer shall rely upon and be guided by legal precedent and authorities construing the same term used in California Code of Civil Procedure section 998.

5.30.120 Fair Return Standard.
a. Owners may obtain rent adjustments for individual mobilehome parks pursuant to the standards established in this section in order for rents to be set at a level which will avoid a confiscatory taking of the owner's property and satisfy federal and state constitutional requirements. Rents established hereunder must be fair to the owner and to tenants.

1. Presumption of Fair Base Year Net Operating Income (NOI).

Except as provided in subsection (a)(2), it shall be presumed that the net operating income ("NOI") produced by the park in the base year provided a fair return on the property.

2. Adjustments of Fair Base Year Net Operating Income.

If the hearing officer determines that the base year NOI yielded other than a fair return, she/he shall adjust the base year NOI in accordance with this section. The hearing officer shall not make such a determination unless she/he has made at least one of the following findings:
(a) The owner's operating expenses in the base period were unusually high or low. In such instances, the operating expenses shall be adjusted to reflect normal operating expenses for the park for the period in question, assuming full occupancy levels in the park.

In determining whether the owner's operating expenses were unusually high or low, the hearing officer shall consider, among other things, whether:
(1) The owner made substantial capital improvements during the base period which were not reflected in the rent levels on the base date.
(2) Expenses were unusually high or low, relative to other years. (b) The rent was disproportionately low or high due to the fact, established by a preponderance of the evidence, that it was not established in an arms-length transaction or there were other peculiar circumstances that demonstrate that the rent was not set under general market conditions. In such instances, the rent shall be adjusted to reflect general market conditions for the base period in question, assuming full occupancy levels in the park.

3. Calculation of Net Operating Income.

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For the purposes of an individual rent adjustment proceeding pursuant to this chapter, the following definitions shall apply:
(a) Net Operating Income equals Gross Income minus operating expenses. (b) Gross Income equals the sum of:
(1) Gross rents, including but not limited to any rent derived by virtue of the owner's adjustment of rents pursuant to section 5.30.050 (general, annual adjustment), (2) Interest from collected security deposits which the owner has agreed to pay to the tenant, but which is retained by the owner, and
(3) All other income or consideration received or receivable in connection with the use and occupancy of the park spaces, as allowed by this chapter, but not including income or consideration received for the provision of gas and electricity. (c) Operating expenses shall include the following:
(1) Real property taxes,
(2) Utility costs incurred by the owner in providing gas and electric service only to the park's common areas or common facilities but only to the extent said costs are permitted to be charged to the tenants pursuant to rules adopted by the California Public Utilities Commission,
(3) Management fee for operating the park, not to exceed four percent of gross income, unless it is demonstrated that fees in excess of this amount are reasonable, (4) Reasonable accounting fees,
(5) Insurance,
(6) Owner-performed labor, at reasonable rates for the trade or profession for the community, (7) License and registration fees,
(8) Maintenance expenses,
(9) Fees paid to the city for petitions made pursuant to this chapter, (10) Attorney's fees and costs incurred and not collectible: (i) in connection with good faith attempts to recover rents owing, (ii) in connection with good faith unlawful detainer actions (not in violation of applicable law to the extent that such expenses are not recovered from the residents), (iii) in complying with the State Mobilehome Residency Law, and/or (iv) which are directly related to the operation, maintenance, and improvement of the park and do not constitute those fees and costs described in subsection (d)(5), below.

Fees which are clearly excessive in relation to the customary and reasonable rates shall be disallowed.
(11) Reserves for replacement of long-term improvements or facilities, provided that accumulated reserves shall not exceed five percent of annual gross income. (d) Operating expenses shall not include the following:
(1) Unnecessary and unreasonable expenses. To the extent that any expense upon which a rent adjustment is sought by the owner has increased at a rate greater than the percentage change in the applicable CPI, then the amount by which said expense has increased above the CPI shall be presumed unreasonable unless the owner can show, by a preponderance of the evidence, otherwise,
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(2) Mortgage principal and interest payments,
(3) Ground lease payments,
(4) Any penalties, fees or interest assessed or awarded for violations of this or any other law, (5) Legal and professional costs and fees except as provided in subsection (3)(c)(10).

Notwithstanding subsections (3)(c)(10) or (3)(d)(5) to the contrary, under no circumstances shall operating expenses include legal and professional costs and fees incurred in connection with (i) providing advice or assistance to an owner concerning the application or interpretation of this chapter, (ii) representation at or concerning meetings or hearings of any governmental agency under, pertaining to or connected with this chapter, (iii) preparing for, advising with respect to or attending any hearing officer proceeding or other proceeding, conference, meeting or hearing conducted pursuant to this chapter, (iv) challenging hearing officer or other decisions made pursuant to or in connection with this chapter, and/or (v) actions brought challenging the validity or applicability of this chapter, (6) Depreciation of real and personal property,
(7) Any expense for which the owner has been reimbursed from a source other than rental income (such as insurance),
(8) Except for those costs permitted to be passed on to tenants by the California Public Utilities Commission and specified in subsection (3)(c)(2), above, expenses incurred in connection with the provision of electric and gas utilities,
(9) The owner's 50 percent share of the costs of the general administration of this chapter as set forth in section 5.30.140, below,
(10) Costs incurred by the owner in lobbying against rent control.

4. Calculation of Fair Return.
(a) It shall be presumed that the base period net operating income ("NOI") adjusted by 100 percent of the increase or decrease in the Consumer Price Index since the end of the base year derived by an owner yields a fair return ("maintenance of NOI formula"). If any party to a hearing held to adjudicate an individual rent adjustment petition contends that the maintenance of NOI formula governs the petition and sufficient evidence has been adduced upon which the hearing officer can determine whether the park's relevant current NOI conforms to the maintenance of NOI formula, then the hearing officer shall make a determination, with findings, of whether or not the owner's net operating income yields a (i) fair return to the owner under this formula and (ii) fair rents to the tenants.
(b) The base period Consumer Price Index shall be the Consumer Price Index level for January 1996 if the base period is calendar year 1995. The base period Consumer Price Index shall be the Consumer Price Index level for January 1995 if the base period is the averaged base period, as defined below. Current period Consumer Price Index shall be the Consumer Price Index as of the date of the petition for an individual rent adjustment. (c) The park owner and/or tenant may establish that the maintenance of NOI formula will not provide a fair and reasonable return and that an alternate formula should be used by the hearing officer in evaluating the petition.
(d) Notwithstanding any other provision of this chapter, the hearing officer may consider any factors cognizable under the law in order to ensure that the rent permitted yields a fair return.

5. Base Year Defined.

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(a) Effective as to any petition based on petition year 2028 or thereafter, "base year" or "base period" shall be determined by applying the following calculation: the NOI for calendar year 2023 shall be compared to the average NOI for calendar years 2020, 2021 and 2022. As between the two NOI's, whichever is less shall determine the "base year" or "base period". The period for which the NOI is less shall be the "base year" or "base period". If, based on this calculation, the 2019 through 2021 period is the "base period", then, in this chapter, that period shall be referred to as the "averaged base period", "base period" or "base year". If, based on this calculation, the 2019 calendar year is the "base period" or "base year", then, in this chapter, that period shall be referred to as the "base period" or "base year". The application of this subsection to any petition governed by its provisions shall not result in the retroactive reduction of the permitted rent level established by reason of an individual rent adjustment petition based on petition year 2024 or earlier.
(b) Notwithstanding any provision of section 5.30.090 to the contrary, in instances in which the exact information regarding base year income and expenses is not available for the mobilehome park which is the subject of the hearing, the hearing officer shall have the discretion to consider all other information available to estimate the relevant base year net operating income for the mobilehome park.
(1) Such information may include, but shall not be limited to the following:
(i) Information from tax returns, bank statements, annual reports or other financial data.
(ii) Such other information which may be available.
(2) In making an estimation under this section, the hearing officer may make reasonable inference and assumptions about the existing data as are necessary to project what the actual amount was.
(3) The hearing officer shall consider the comments from all parties to the hearing regarding the accuracy of the data used and the methodology in arriving at the estimated data. (4) In determining the burden of proving the reasonableness of the rent increase under section

5.30.090, the hearing officer may consider the circumstances under which missing data became unavailable as well as the credibility of testimony from all parties.

6. Health Risks.

In any determination of what constitutes a reasonable rent increase under the circumstances, the hearing officer shall consider and weigh evidence establishing the nature and extent of any violations by either the owner, the operator, or homeowners of the State Health and Safety codes or other laws applicable to the park. Any rent increase may be disallowed, reduced, or made subject to reasonable conditions, depending on the severity of such violations.

5.30.130 Disclosures.
a. An owner shall disclose to each tenant-to-be the rent paid by the previous tenant and provide each tenantto-be with a copy of this chapter. b. Any person who is a "tenant-to-be" must be offered the option of renting a mobilehome space in a manner which will permit the "tenant-to-be" to receive the benefits of this chapter which includes, but is not limited to, rental of a mobilehome space on a month-to-month basis, and a maximum allowable rent as provided in this chapter. Such a person cannot be denied the option of a tenancy 12 months or less in duration. The Yreka City Council Agenda
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owner shall provide each "tenant-to-be" with a written notification of the option which shall make the following recitation:
"UNDER YREKA MUNICIPAL CITY CODE CHAPTER 5.30 YOU ARE LEGALLY ENTITLED TO ELECT A MONTH-TOMONTH TENANCY OVER ANY OTHER LONGER PERIODIC TENANCY. YOU ARE ADVISED THAT YOU MAY NOT BE

ENTITLED TO RENT STABILIZATION (RENT CONTROL) PROGRAM BENEFITS IF YOU ELECT A LEASE OF MORE THAN 12 MONTHS IN DURATION IF THAT LEASE MEETS THE REQUIREMENTS OF CIVIL CODE SECTION 798.17 WHICH HAS BEEN ATTACHED HERETO."
The written notification will include a place for the tenant-to-be to acknowledge receipt of the notification and a copy thereof will be provided to that tenant-to-be. Any effort to circumvent the requirements of this section shall be unlawful, as well as an unfair business practice subject to enforcement under Business and Professions Code Section 17200 et seq.

5.30.140 Fees.
a. The costs of general administration of this ordinance shall be borne by the city; subject to reimbursement of and/or payment to the city's general fund by imposition and collection of a rent stabilization administration fee chargeable against each mobilehome space subject to rent control in the city. Said fee is hereby established and so imposed. The park owner shall pay said fee to the city. The park owner who pays these fees may pass through 50 percent of the fees assessed against a mobilehome space to the tenant only as set forth herein. This fee pass through must take place no later than 12 months after the park owner is billed for the program administration fees. Failure to timely pass through 50 percent of the fees assessed against a mobilehome space will result in the loss of the park owner's right to do so. The remaining 50 percent of the fees assessed against a mobilehome space shall not be included as an expense under section

5.30.120(a)(3)(d), charged to the tenants in any way, or passed on in any way to tenants. Fees passed through to tenants as herein authorized shall not be considered a part of the rent base upon which future rent increases can be made, and shall be amortized over a period of at least 12 months in length. The notice to increase rents to include any fee pass through authorized by this section shall notify the tenant, in writing, of the fee pass through. Any billing statement or other notice in which the fee pass through is contained shall identify the amount of the fee pass through.
b. The fees imposed by this section shall be paid by the park owner annually. The time and manner of payment, delinquency status, and assessment and collection of penalties for delinquent payment of the fees imposed by this section shall be as provided by separate resolution of the city council. The city manager shall recommend to the city council from time to time the amount of such fee and the city council shall adopt such fee by resolution.
c. Any park owner who believes that they may be entitled to a space fee exemption pursuant to section

5.30.020, shall provide the city manager with a detailed calculation and explanation justifying the claimed exemption(s). The accuracy of said representation and calculation(s) shall be executed under penalty of perjury and all costs to the city arising from any inaccuracy of the representation(s) will be borne by the park owner.

5.30.150 Designated Tenant Representative.
a. The tenants of each mobilehome park in the city who rent spaces controlled by this chapter shall annually elect by majority vote, with one vote per space as specified in subsection (a)(4)(c)(5), a designated tenant representative ("DTR") to receive all notices and documents which by this chapter are required to be delivered to the DTR and to discharge those other responsibilities imposed upon them by this chapter. In Yreka City Council Agenda
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addition, on behalf of the tenants, said DTR shall have the authority to accept and reject settlement offers submitted pursuant to section 5.30.110, which said acceptance or rejection by the DTR shall be binding upon the said tenants.
b. The elected DTR shall advise the city manager and owner of the name, address and phone number of the elected DTR in writing no later than January 31 of each year and shall promptly notify the city manager and owner of any change of representative. Said writing shall be dated, signed and also include the following certification, or a certification substantially similar to the following:
"I certify that I have been elected as the designated tenant representative (DTR) for the ___________ mobilehome park ("park") as the result of a duly noticed election. All tenants of spaces in the park which are governed by chapter 5.30 of the Yreka Municipal Code were delivered written notices advising them of (a) their right to vote for the park's DTR, (b) the authority and obligations of the DTR, (c) the slate of candidates running for the position of the park's DTR, (d) the date by when and how they must cast their vote and (e) the place to cast their vote. I further certify that of the ballots timely cast, _______ [number] or _______% were cast in favor of the undersigned."
c. In the event no person is elected or willing to serve as the DTR, then the president or presiding officer of any existing tenants' organization or association shall be requested by the owner to serve as the DTR until said position can be filled by election as set forth above. Any such president or presiding officer shall submit to the owner and city manager a certification substantially similar to that set out above, attesting to the fact that a majority of the tenants of the park are members of the tenants' organization or association of which s/he is a member and that the board of directors of said organization or association duly elected them as its president or presiding officer and that s/he has been authorized by that board to act as the DTR pursuant to this chapter.
d. In the event that no person will or can serve as the DTR in a given park, then the duties and authorization imposed upon and granted, respectively, to the DTR hereunder shall not be discharged or exercised, respectively, with respect to that park.
e. In the event a DTR fails to discharge their duties as specified in this chapter, the tenants described in subsection (a) of this section shall have the right to vote as to whether or not the DTR shall continue acting as the DTR. If the tenants renting a majority of the spaces controlled by this chapter vote against the DTR retaining their position as DTR, that person shall step down from and no longer occupy the position of DTR effective as of the date of the election.
f. In addition to the DTR's duties and authorization set forth in subsection (a) of this section, the DTR shall discharge the following obligations:

1. Upon receipt of the notices and documents which the DTR is to receive under this chapter, the DTR shall (a) post copies of same in a community center or other place in the park that is readily accessible to and frequented by the tenants, and (b) electronically send them to all affected tenants but only to the extent that the DTR personally has the equipment, technology and know-how to accomplish this task (and the DTR only needs to electronically send said material to those affected tenants who have provided the DTR their email addresses);

2. Make good faith and timely efforts to notify all affected tenants of any settlement offers received by or proposed by the DTR pursuant to section 5.30.110. In this connection, the DTR shall develop and follow procedures aimed at soliciting and obtaining the maximum input practicable from those tenants affected by such settlement offers so that the DTR is reasonably certain that the positions the DTR takes vis a vis such offers is representative of the desires of those tenants who are renting a majority of the spaces affected or potentially affected by the offers. g. During their term of office as the DTR, the DTR cannot also serve on any city council, commission, committee or board.

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5.30.160 Solicitations of Any Petitions by the Park Owners are Without Force or Legal Effect Within City's Program.

Except as to the notice and consent described in section 5.30.090(c) the distribution of a petition or other documents seeking to have mobilehome tenants waive rights, abandon a filed petition or in any way affect the entitlement of the tenants to participate in the rent stabilization process authorized hereunder shall be without force or legal effect within the city's rent stabilization program. Such documents shall not affect the right of any tenant to participate in the rights, remedies, procedures and processes set forth in this chapter. Efforts to utilize such documents to discourage participation in the city's rent stabilization program may be deemed retaliation.

5.30.170 Tenant Complaints.

Tenants shall have the same rights as an owner to a hearing before a hearing officer in order to object to any rent increase or to enforce any provision of this chapter. Tenants shall file a complaint with the city (and contemporaneously deliver a copy to the owner) and pay any applicable fees. Tenants filing such complaints seeking hearings under this chapter shall be subject to the rules set forth in sections 5.30.090 and 5.30.100, and shall pay those costs and fees as set forth in and pursuant to subsection 5.30.090(b)(3). All such complaints shall describe in detail the basis therefor and shall attach, where available and necessary to a full understanding of the complaint, documents and writings which support the complaint.

5.30.175 Rent Reductions for Service Reductions.
a. Submission of Service Reduction Petition to City Manager. A tenant may submit a petition for the reduction of rent based upon service reductions. A service reduction petition shall be submitted to the city manager in writing and should state, to the extent applicable:

1. The affected spaces;

2. The prior level of service established by the park owner for that tenant's mobilehome space and common facilities used by that tenant;

3. The specific changes in the prior level of services comprising the alleged reduction in service;

4. The date the service reduction was first noticed by the tenant;

5. The date of notice to the owner of the alleged service reduction, and if such notice was given, whether the notice was given orally or in writing;

6. When and how the owner responded to the tenant's notice, if notice was given;

7. Whether the condition was improved or corrected, and if so, when and how;

8. The status of the condition as of the date the petition is signed;

9. How the reduction or lack of the service in question has affected the petitioner's enjoyment of their rental unit, specifying, if possible, the nature of the effect and the time(s) during each day that the effect is manifested; and

10. Whether such service reduction was the result of a vote of a majority of the affected tenants. b. Filing, Processing and Deciding Service Reduction Petitions.

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1. Subject to the provisions of this section, the filing, processing, and deciding of a service reduction petition shall be governed by sections 5.30.090(b) and 5.30.100. The petition must be signed under penalty of perjury attesting that the petition and its attachments accurately and completely reflect and show all the relevant information set forth in subsection (a). The petition must be accompanied by payment of the fee set for this purpose by council resolution. Within 30 days of the city receiving the petition, the city shall determine if the petition is complete such that it provides the necessary information and otherwise complies with this subsection and within that 30-day period, the city shall mail to the petitioner and owner the city's determination of completeness.

2. The petitioner seeking a service reduction rent decrease shall serve a copy of the petition and all supporting papers on the park owner's representative and the designated tenant representative at the same time petitioner files the petition with the city.
c. If the hearing officer finds that a material service reduction has occurred, the hearing officer shall determine the resultant percentage reduction in the tenants' enjoyment of their rental units due to the service reduction. Rent shall be reduced by that percentage or amount. The tenants also shall be entitled to a rebate of the following sum: the monthly rent reduction multiplied by the number of months between the date the tenants notified the park owner of the reduction in service, and the date the hearing officer determined the rent reduction. Said rebate shall be amortized and paid to the affected tenants in equal monthly installments over a five-year period, bearing interest. In the event the park owner was not notified of the service reduction by the tenants or petitioner and the park owner did not know nor should have known that the service reduction occurred prior to the filing of the petition, then no rebate shall be awarded. If a preponderance of the evidence proves that the park owner knew or should have known of the reduction in service, then a rebate shall be awarded and calculated from the date that the park owner knew or should have known of the advent of the reduction.
d. A service reduction shall not include the elimination or reduction of a recreational facility or service when such elimination or reduction and rent decrease resulting therefrom have the prior written approval of tenants renting two-thirds of the rental spaces in the park. In such cases no rebate shall be required. e. No recreational service or facility which has been reduced or eliminated shall be reinstituted at any cost to the homeowners without prior written approval of tenants renting two-thirds of the rental spaces in the park.
f. Consolidation of Service Reduction Petition with Consideration of Fair Return Petition. In the event that a service reduction petition is filed while a fair return petition is pending, either the city, the park owner, or the tenants may require consideration of the petition filed pursuant to this section in conjunction with the fair return petition.

5.30.180 When Recreational Vehicle Space Tenants are Governed by this Chapter.

Any recreational vehicle space that is occupied by a recreational vehicle as defined in Civil Code Section 799.29 for a period in excess of nine months on or after January 1, 2026, shall be regarded to be a "mobilehome space" for purposes of this chapter, and a tenant upon such a space shall be entitled to all the rights, protections and obligations of this chapter. Notwithstanding anything to the contrary stated hereinabove, upon the effective date of this chapter, said space shall be subject to the fees authorized by the city council for mobilehome spaces.

The space tenant and the park owner shall apportion the fee in the manner authorized for mobilehome spaces subject to this chapter generally.

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5.30.190 Disclosure Under PRA.

All information and documents submitted to the city and all written decisions made by the hearing officer under this chapter shall be deemed public records and disclosable as such under the California Public Records Act, unless nondisclosure is required under said act.

5.30.200 Enforcement.

If authorized by the city council and it becomes necessary for the city attorney to seek judicial enforcement of the orders of the hearing officer, or city council, the city shall be entitled to receive reasonable attorney's fees and costs, including expert witness fees, from the defendant or defendants in such action as set by the court if such judicial enforcement action is successful. Nothing in this section shall prevent a private party from commencing an action to enforce the orders of the hearing officer or council.

5.30.210 Penalties.
a. Any violation of this chapter shall be a misdemeanor punishable as is provided in the Yreka Municipal Code. b. If any party to any proceeding hereunder is found by the hearing officer to not be proceeding in good faith, in addition to whatever other penalties and provisions might otherwise be incurred or assessed, said party shall be assessed a penalty not less than twice, nor more than thrice, the amount at issue as to which good faith was lacking. One half of the penalty shall be paid to the other party; one half shall be paid to the city.

5.30.220 Fees.

The fees which are required to be paid under section 5.30.090 (a) above shall be established by separate city council resolution.

5.30.230 Sunset Clause.

This chapter shall cease to be effective on January 1, 2033, provided that prior thereto, the city council adopts an ordinance repealing same, but if the council does not adopt such a repealing ordinance, this chapter shall continue in effect for an additional three years and shall continue in effect for successive three year periods unless prior to the end of each three year period, the council adopts a repealing ordinance.

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Yreka City CouncilJune 16, 2026

Yreka City Council
June 16, 2026