City of Yreka Municipal Services Review and Sphere of Influence Update - April 2021

SISKIYOU LOCAL AGENCY FORMATION COMMISSION CITY OF YREKA MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE UPDATE APRIL 2021 C Y C Y ITY OF REKA ITY OF REKA M S R UNICIPAL ERVICE EVIEW AND S I U PHERE OF NFLUENCE PDATE Prepared for: Siskiyou Local Agency Formation Commission 806 South Main Street Yreka, CA 96097 Contact Person: Rachel Jereb, Executive Officer Phone: (530) 841-2100 Consultant: 901 East Main Street Visalia, CA 93292 Contact: Steve Brandt, Project Manager Phone: (559) 733-0440 Fax: (559) 733-7821 April 2021 © Copyright by Quad Knopf, Inc. Unauthorized use prohibited. Project #160369 SISKIYOU LOCAL AGENCY FORMATION COMMISSION Commissioners Deborah Baird, Chair, City Representative Gary Peery, Vice Chair, Public Member-at-Large Representative Nancy Ogren, Siskiyou County Representative Ed Valenzuela, Siskiyou County Representative Matthew Bryan, City Representative Alternate Commissioners Michael Kobseff, Siskiyou County Representative Michelle DeCausmaker, City Representative Laurel Harkness, Public Member-at-Large Public Representative Staff Rachel Jereb, Executive Officer Janine Rowe, Commission Clerk Legal Counsel William Carroll, Legal Counsel Consultant 901 East Main Street, Visalia, CA 93292 © Copyright by Quad Knopf, Inc. Unauthorized use prohibited. Project # 160369 TABLE OF CONTENTS SECTION 1 - Introduction .............................................................................................................................. 1-1 1.1 - Role and Responsibility of Local Agency Formation Commission (LAFCo) ..................... 1-1 1.2 - Municipal Service Review Purpose .................................................................................................... 1-1 1.3 - Methodology and Approach .................................................................................................................. 1-4 1.4 - Public Review and Adoption Process ................................................................................................ 1-4 1.5 - Required Topic Areas of Analysis ....................................................................................................... 1-4 1.6 - Issues Analyzed ........................................................................................................................................... 1-6 1.7 - Background, Setting and History ......................................................................................................... 1-7 1.8 - Services Currently Provided .................................................................................................................. 1-7 1.9 - Determinations ........................................................................................................................................... 1-9 SECTION 2 - Growth and Population Projections ................................................................................. 2-1 2.1 - Historical Data and Population Projections .................................................................................... 2-1 2.2 - Planning Documents ................................................................................................................................. 2-2 2.3 - Planning Boundaries ................................................................................................................................. 2-3 2.4 - Annexations .................................................................................................................................................. 2-3 2.5 - Land Use ......................................................................................................................................................... 2-4 2.6 - Regional Housing Needs Allocation/Plan (RHNA/P) ................................................................. 2-8 2.7 - Anticipated Service Needs ...................................................................................................................... 2-9 2.8 - Determinations ........................................................................................................................................... 2-9 SECTION 3 - Disadvantaged Unincorporated Communities ............................................................ 3-1 3.1 - Determinations ........................................................................................................................................... 3-1 SECTION 4 - Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies ................................................................. 4-1 4.1 - Capital Improvement Plan ...................................................................................................................... 4-1 4.1.1 - Determinations ......................................................................................................................... 4-2 4.2 - Water ............................................................................................................................................................... 4-3 4.2.1 - Summary of Prior MSR Findings ....................................................................................... 4-3 4.2.2 - Current Conditions .................................................................................................................. 4-3 4.2.3 - Determinations ......................................................................................................................... 4-6 4.3 - Wastewater ................................................................................................................................................... 4-7 4.3.1 - Summary of Prior MSR Findings ....................................................................................... 4-7 4.3.2 - Current Conditions .................................................................................................................. 4-7 4.3.3 - Determinations ...................................................................................................................... 4-10 4.4 - Storm Drainage ........................................................................................................................................ 4-11 4.4.1 - Summary of Prior MSR Findings .................................................................................... 4-11 4.4.2 - Current Conditions ............................................................................................................... 4-11 i 4.4.3 - Determinations ...................................................................................................................... 4-12 4.5 - Road Maintenance .................................................................................................................................. 4-14 4.5.1 - Summary of Prior MSR Findings .................................................................................... 4-14 4.5.2 - Current Conditions ............................................................................................................... 4-14 4.5.3 - Determinations ...................................................................................................................... 4-16 4.6 - Law Enforcement .................................................................................................................................... 4-17 4.6.1 - Summary Of Prior MSR Findings.................................................................................... 4-17 4.6.2 - Current Conditions ............................................................................................................... 4-17 4.6.3 - Determinations ...................................................................................................................... 4-20 4.7 - Fire Protection .......................................................................................................................................... 4-21 4.7.1 - Current Conditions ............................................................................................................... 4-21 4.7.2 - Determinations ...................................................................................................................... 4-22 4.8 - Parks and Recreation ............................................................................................................................. 4-23 4.8.1 - Summary of Prior MSR Findings .................................................................................... 4-23 4.8.2 - Current Conditions ............................................................................................................... 4-23 4.8.3 - Determinations ...................................................................................................................... 4-26 4.9 - Plans for Future Services ..................................................................................................................... 4-27 4.9.1 - Determinations ...................................................................................................................... 4-27 SECTION 5 - Financial Ability to Provide Services ............................................................................... 5-1 5.1 - City Budget .................................................................................................................................................... 5-1 5.1.1 - Rates and Fees ........................................................................................................................... 5-3 5.1.2 - Proposition 218 ........................................................................................................................ 5-4 5.1.3 - Opportunities for Rate/Fee Restructuring ................................................................... 5-4 5.1.4 - Determinations ......................................................................................................................... 5-5 5.2 - Status of, and Opportunities for, Cost Avoidance and Shared Facilities ............................ 5-6 5.2.1 - Determinations ......................................................................................................................... 5-7 5.3 - Accountability for Community Service Needs, including Governmental Structure and Operational Efficiencies ..................................................................................................................................... 5-7 5.3.1 - Organizational Structure ...................................................................................................... 5-8 5.3.2 - Practices and Performance ............................................................................................... 5-12 5.3.3 - Determinations ...................................................................................................................... 5-13 SECTION 6 - Sphere of Influence Review ................................................................................................. 6-1 6.1 - Sphere of Influence Overview ............................................................................................................... 6-1 6.2 - Present and Planned Land Uses ........................................................................................................... 6-1 6.3 - Present and Probable Need for Public Facilities and Services ............................................... 6-2 6.3.1 - Disadvantaged Unincorporated Communities ............................................................ 6-2 6.4 - Present Capacity of Public Facilities and Adequacy of Public Services .............................. 6-2 6.5 - Existence of Any Social or Economic Communities of Interest .............................................. 6-3 6.6 - Yreka Sphere of Influence Recommendations ............................................................................... 6-3 SECTION 7 - References .................................................................................................................................. 7-1 ii LIST OF FIGURES Figure 1-1 Regional Location .......................................................................................................................... 1-2 Figure 1-2 City of Yreka City Limits and Sphere of Influence ........................................................... 1-3 Figure 2-1 Existing Developed Areas within the Sphere of Influence ........................................... 2-5 Figure 2-2 Vacant Parcels near Yreka ...................................................................................................... 2-10 Figure 3-1 Median Household Income (2019) ........................................................................................ 3-2 Figure 3-2 Potential Disadvantaged Unincorporated Communities .............................................. 3-3 LIST OF TABLES Table 1-1 Services Matrix within the City of Yreka ............................................................................... 1-9 Table 2-1 Historical Population Growth (1970-2040) ........................................................................ 2-2 Table 2-2 Yreka 2014-2019 Housing Allocation..................................................................................... 2-9 Table 4-1 Wastewater Operations Fund Expenditures ....................................................................... 4-9 Table 4-2 Yreka Road Projects..................................................................................................................... 4-15 Table 4-3 2014-2019 Reported Crime Statistics (Category I Crimes) ....................................... 4-19 iii Introduction SECTION 1 - INTRODUCTION 1.1 - Role and Responsibility of Local Agency Formation Commission (LAFCo) The Siskiyou Local Agency Formation Commission (LAFCo) is the oversight agency for special districts and cities within Siskiyou County. The role of LAFCo under the Cortese- Knox-Hertzberg Reorganization Act of 2000 is to oversee local agency boundary changes and to adopt spheres of influence for local agencies. Among the purposes of LAFCOs are the discouragement of urban sprawl and the encouragement of the orderly formation and development of local agencies. As such, LAFCo is considered the “watchdog” of local agencies by the State Legislature and is solely empowered with establishing spheres of influence that dictate the provision of future service delivery to orderly growth of that agency. Therefore, it is LAFCo’s responsibility to review the information available regarding services provided by an agency and make appropriate determinations that will establish future policy for future boundary decisions, such as annexations, for the corresponding jurisdiction. 1.2 - Municipal Service Review Purpose The Municipal Services Review (MSR) process is a comprehensive assessment of the ability of existing government agencies to provide services effectively and efficiently to residents and users. The form and content of the MSR is governed by requirements of the Cortese- Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act) and the State of California’s Local Agency Formation Commission (LAFCo) MSR Guidelines (Guidelines), published in August 2003. The CKH Act requires all LAFCos, including Siskiyou LAFCo, to prepare an MSR for each of its incorporated cities and special districts. The fundamental role of LAFCo is to implement the CKH Act by providing for the logical, efficient, and most appropriate formation of local municipalities, service areas, and special districts. These MSRs must be completed prior to, or in conjunction with, the update of a Sphere of Influence (SOI) or before LAFCo initiates any reorganization of district boundaries. This review is intended to provide Siskiyou LAFCo with all necessary and relevant information related to the operations and management of the City of Yreka (the City). The City is the county seat of Siskiyou County and is located in the north-central part of the County, approximately 20 miles south of the Oregon border (see Figure 1-1 and Figure 1-2). The information in this report may be used in considering an update to the City’s SOI by Siskiyou LAFCo or for other policy related decisions related to the City. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-1 Introduction Figure 1-1 Regional Location Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-2 Introduction Figure 1-2 City of Yreka City Limits and Sphere of Influence Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-3 Introduction MSRs are intended to provide LAFCo with a comprehensive analysis of service provision by cities and other service providers within the legislative authority of LAFCo. The MSR focuses on service providers within the area of the City and will make determinations in each area of evaluation, providing the basis for Siskiyou LAFCo to review possible amendments to Sphere of Influence or possible reorganization, consolidation, or annexation with those other service providers. 1.3 - Methodology and Approach The process of developing the MSR began with a kick-off meeting to discuss the existing services provided by the City to its residents. Following the meeting, a comprehensive survey was sent to the City of Yreka staff. The purpose of the survey was to retrieve more specific and technical information regarding the City’s operations and delivery of its various services. The information requested included documents such as planning and budgetary documents, adopted budgets, Capital Improvement Programs, technical or special studies, and any other records related to the provision of municipal services by the City. 1.4 - Public Review and Adoption Process Two drafts of the MSR document will be presented to LAFCo. A first draft will allow for public comments and a final draft will be presented to the Commission for formal acceptance. The final draft will incorporate any/all revisions, corrections, and responses to comments received at the prior public workshop. 1.5 - Required Topic Areas of Analysis The MSR contains analysis and conclusions, referred to as determinations, regarding six topic areas set forth in the CKH Act. These areas of analysis contain the essential operational and management aspects of each service provider, and together constitute a complete review of the ability of the providers to meet the service demands of the residents and businesses within the City. The six topic areas used for analysis in this MSR are as follows: 1. Growth and Population Projections 2. Disadvantaged Unincorporated Communities 3. Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies 4. Financial Ability to Provide Services 5. Status of, and Opportunities for, Shared Facilities 6. Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies An explanation of the specific operational and management aspects considered in each of these topic areas is provided below. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-4 Introduction 1. Growth and Population Projections Service efficiency is linked to a service provider’s ability to plan for the future need of a city while also meeting existing service demands. This section reviews projected service demands and needs based upon existing and anticipated growth patterns and population projections. This is found in Section 2. 2. The Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence Unincorporated disadvantaged communities, as defined by Water Code §79505.5, may lack basic infrastructure, such as water, sewer, or fire protection, because they may have been overlooked during the comprehensive land use planning process due to their socioeconomic status. To promote equality and environmental justice in accordance with adopted local policy and Senate Bill 244, which was adopted in 2011, the proximity of any disadvantaged community to existing service providers is analyzed and discussed in order to determine if the community should be included in the SOI of the City. This is found in Section 3. 3. Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies Infrastructure can be evaluated in terms of condition, capacity, availability, quality, and relationship to operational, capital improvement and finance planning. This section assesses the adequacy and quality of the service providers’ physical infrastructure and analyzes whether or not sufficient infrastructure and capital are in place (or planned for) to accommodate planned future growth and expansions. This is found in Section 4. 4. Financial Ability to Provide Services This section analyzes the financial structure and health of the City with respect to the provision of services. Included in this analysis is the consideration of rates, service operations, and the like, as well as other factors affecting the City’s financial health and stability, including factors affecting the financing of needed infrastructure improvements and services. Compliance with existing State requirements relative to financial reporting and management is also discussed. This is found in Section 5. 5. Status of, and Opportunities for, Shared Facilities Practices and opportunities that may help to reduce or eliminate unnecessary costs are examined in this section. Occurrences of facility sharing are listed and assessed for efficiency, and potential sharing opportunities that would serve to better deliver services are discussed. This is found in Section 5.2. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-5 Introduction 6. Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies This section addresses the adequacy and appropriateness of the agency’s existing boundaries and Sphere of Influence and evaluates the ability of the City to meet their service demands under their existing government structure. Also, included in this section is an evaluation of compliance by the agency with public meeting and records laws. This is found in Section 5.3. 1.6 - Issues Analyzed The City of Yreka (City) is a general law city located in north-central Siskiyou County (Northern California), encompassing approximately 10 square miles. The City was established in 1851 and is empowered to provide various municipal services, including the following, which will be addressed in this MSR: • Water Infrastructure • Wastewater Infrastructure • Storm Drainage • Roadways • Law Enforcement • Fire Protection • Parks and Recreation • City Hall The preamble of the CKH Act contains a number of legislative findings and declarations that serve as a general guide for LAFCo's and their purpose for being. The first and main declaration is that: It is the policy of the State to encourage orderly growth and development, which are essential to the social and economic well-being of the State. The Legislature goes on to make further declarations in CKH Section 56001 about how the determination of orderly local government boundaries is important to orderly growth and development. The Legislature also makes the following declarations in Section 56001: The Legislature finds and declares that a single multipurpose governmental agency is accountable for community service needs and financial resources and, therefore, may be the best mechanism for establishing community service priorities especially in urban areas. Nonetheless, the Legislature recognizes the critical role of many limited purpose agencies, especially in rural communities. The Legislature also finds that, whether governmental services are proposed to be provided by a single-purpose agency, several agencies, or a multipurpose agency, Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-6 Introduction responsibility should be given to the agency or agencies that can best provide government services. The main purpose of this MSR is to review past findings, if available, for various City services and evaluate if the level of services currently being provided is operating at a level that is still encouraging orderly growth and efficient service delivery to residents of Yreka. Once that is determined by LAFCo, then questions regarding SOI and boundary change recommendations can be answered. 1.7 - Background, Setting and History The City of Yreka is located approximately 20 miles south of the Oregon border in north- central Siskiyou County. The City encompasses an area of approximately 10 square miles with an average elevation of 2,589 feet above sea level. The town of Yreka was originally established in 1851 when gold was discovered in the area. Approximately 2,000 miners flocked to the area within weeks of the discovery of gold. The town, called Thompson’s Dry Diggins at the time, boomed in the 1850’s, with Miner Street the hub of commerce. Numerous stage lines used the town for a stage stop, two sizable Chinatowns existed on Miner Street, and in 1889 a short line railroad connected the City with the Southern Pacific's west coastline to the east of Yreka. Several name changes occurred before the City was called Yreka and incorporated on April 21, 1857 (PMC, 2010). The City is governed by a Council/Manager form of government made up of five Council members elected to four-year, overlapping terms. The City Mayor and Mayor Pro Tempore are elected from within the Council and serve two-year terms. The fiscal year (FY) of the City is from each July 1 to June 30 of the following year. The City works with other local and regional government agencies including Siskiyou County, the State of California, the Siskiyou County Air Pollution Control District, the Shasta Valley Resource Conservation District, the North Coast Regional Water Quality Control Board, the California Department of Forestry and Fire Protection (CAL FIRE), the California Department of Transportation (Caltrans), and the Siskiyou County Local Transportation Commission. 1.8 - Services Currently Provided The City of Yreka provides a wide range of services including police and fire protection, street maintenance, water treatment and distribution, wastewater collection and treatment, snow removal, parks and recreation, planning, building and safety, public improvements, animal control and general administration. City recreational facilities include the Yreka Community Center and Theater, Downtown Plaza, Chinese Cemetery Memorial, Newton Sports Park, Ringe Park, Discovery Park, Greenhorn Park, Miner Street Park, Native American Heritage Park, Shasta Avenue Park, Lewis Park, and Yreka Creek Greenway. A further description of each facility and the extent of its current operations are included in Section 4 of this document. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-7 Introduction Other essential services provided to the residents of the City are overseen through various other agencies. These agencies, such as the Siskiyou County Transportation Division, fill voids in the municipal service needs of City residents where the City chooses not to or simply cannot provide an identified service. Other private entities also meet service needs for residents of the City, such as Yreka Transfer LLC, and Mt. Shasta Ambulance Service. Table 1-1 illustrates the services provided in the Yreka area. The matrix specifies whether the services are being provided now or whether those services are authorized but not being provided currently. Provides - means that the agency is authorized by LAFCo and State law to provide the service and that the service is currently being provided. These services may continue to be provided by the agencies at their discretion. Authorized - means that the agency is authorized by LAFCo and State law to provide the service, but this service is not currently being provided. Latent - means that the agency is authorized by State law to provide the service, but districts are first required to gain LAFCo approval before it may begin providing the service. The process to gain LAFCo approval is described in CKH Section 56824.10 et seq. It is similar to an annexation process, requiring an initiating resolution from the agency, followed by LAFCo approval after a public hearing. However, this process is only applicable to special districts ability to provide new services. Cities are not required to seek LAFCo approval in order to provide another municipal service in accordance with the State Constitution. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-8 Introduction Table 1-1 Services Matrix within the City of Yreka Municipal Service Type Yreka Water supply Provides Water distribution and treatment Provides Sewer collection and disposal Provides Storm drainage Provides Flood control Provides Street construction Provides Street maintenance Provides Street lighting Provides Street sweeping/snow plowing Provides Street landscaping Provides Solid waste collection, transfer and disposal Authorized1 Police protection Provides Fire protection Provides Animal control Provides Parks & recreation Provides Airports Authorized Ambulance service Authorized2 Emergency medical service Provides Heat and power Authorized3 Undergrounding of overhead electrical and communication Authorized facilities Generate and sell electricity Authorized Community facilities Provides Television/Cable/Internet services Authorized4 Transportation Authorized5 Cemeteries Authorized Open space conservation Provides 1.9 - Determinations Determination 1-1 – Siskiyou LAFCo has the authority to determine the Sphere of Influence for the City of Yreka. Determination 1-2 – A single multipurpose governmental agency, such as a city, County Service Area, Public Utility District or Community Services District, is the preferred entity by LAFCo and could be accountable for all community service needs and financial resources 1 Provided by Yreka Transfer and Siskiyou County Disposal. 2 Provided through Mt. Shasta Ambulance Service. 3 Propane provided by Amerigas, Suburban Propane, and Campora. Electricity provided by PacifiCorp. 4 Provided by Cal Ore, Hunter Communications, Siskiyou Telephone, and Northland Cable. 5 Provided by Siskiyou County Transportation Division. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-9 Introduction and, therefore, may be the best mechanism for establishing community service priorities especially in urban areas. Governmental services should be given to the agency or agencies that can best provide government services. Determination 1-3 – The City of Yreka is currently providing the following services: • Water Infrastructure • Wastewater Infrastructure • Storm Drainage • Road Maintenance • Snow Removal • Law Enforcement • Code Enforcement • Animal Control • Fire Protection • Parks and Recreation • City Hall (Administration) Determination 1-4 – The following services are currently provided by other agencies or private entities within or around the City of Yreka: • Solid Waste Disposal (Yreka Transfer LLC collects solid waste under contract) • Public Transportation (Siskiyou County-Transportation Division operates STAGE) • Ambulance services (Mt. Shasta Ambulance) Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 1-10 Growth and Population Projections SECTION 2 - GROWTH AND POPULATION PROJECTIONS The purpose of this section is to evaluate service needs based on existing and anticipated growth patterns and population projections. The MSR Guidelines call for LAFCo to determine historic and projected growth and absorption patterns in relationship to a service provider’s boundaries and SOI. In addition, LAFCo is tasked with evaluating the impact and compatibility of such growth on and with land use plans, services, local government structures and growth patterns. 2.1 - Historical Data and Population Projections Historical population data and future projections have been obtained from the U.S. Census Bureau, and the California Department of Finance (DOF). For analysis purposes, this data is compared to other source data relating to growth and population including the City’s General Plan population projections. According to the DOF, the City’s population is currently 7,777 (as of January 1, 2017), making it the most populous city in Siskiyou County. Historical census data indicates that the City of Yreka had a population of 6,925 in 1990, 7,290 in 2000, and 7,765 in 2010. According to the DOF, the City experienced its most dramatic population growth between 1980 and 1990, but the population leveled off after the recession and has remained relatively static since then. The City’s General Plan attributes this slow growth to the decline of the timber industry and lack of replacement jobs. The City is expected to continue to grow at a slow rate during the duration of the General Plan period (through 2022). According to U.S. Census Bureau, the City’s population, as of January 1, 2015, was 7,635 (3,522 males and 4,113 females). The total number of housing units was 3,660, of which approximately 3,256 were occupied. The breakdown in household size is as follows: one- person household – 36.1%, two-person household – 28.4%, three-person household – 13.3%, and four or more-person household – 22.2%. The median total household income was $28,333. The City’s General Plan Housing Element (PMC, 2014) notes that single-family dwelling units comprise 65% of the City’s housing inventory. According to the 2011-2015 American Community Survey (ACS) five-year estimates, the City’s population is comprised of mostly white residents (86.1%). American Indians and Hispanic/Latino residents account for the second and third largest non-white racial/ethnic groups, accounting for 11.3% and 11.0% of the total population, respectively. Based on the City’s General Plan (PMC, 2003), the population of Yreka is projected to grow between 1-2% per year on average over the next 20 years. This would result in a population in 2022 of between 8,400 and 10,250. However, based on current declining population trends throughout Siskiyou County, it is unlikely that the City’s future growth rates will reach General Plan projections. According to the City’s General Plan Housing Element, Yreka’s population has remained nearly static in recent years, growing only 0.1 of 1% between 2010 and 2013. The DOF estimates that between January 1, 2016 and January 1, 2017, the population of Yreka declined by -0.4% (or 34 people). Smaller than anticipated growth rates over the next couple of decades would likely lead to reduced pressure to build new parks Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-1 Growth and Population Projections and public facilities as a result of immediate or significant growth periods. Additionally, the City would have adequate time to properly plan for additional services required to accommodate new residents to the region or fill service gaps with existing service to current residents. The Department of Finance compares the City of Yreka’s population to the overall population of Siskiyou County for years 1970, 1980, 1990, 2000, 2010, and the projected City and County populations for years 2020, 2030, and 2040. Table 2-1 Historical Population Growth (1970-2040) Yreka Siskiyou County Average Average Year Population Annual Population Annual Growth Rate Growth Rate 1970 5,394 33,224 1980 5,900 +0.94% 39,400 +1.86% 1990 6,925 +1.74% 43,300 +0.99% 2000 7,284 +0.52% 44,281 +0.23% 2010 7,765 +0.66% 44,962 +0.15% 2020 7,786 +0.20%6 44,272 -0.15% 2030 7,887 +0.13% 44,492 +0.05% 2040 7,990 +0.13% 44,339 -0.03% Source: Department of Finance Population Projections, Tables E1 & E4Department of Finance Population Projections, Tables E1 & E4 As indicated in Table 2-1, it is estimated that Yreka’s population reached approximately 7,786 by the year 2020, while extrapolating its 2015 growth rate results in an estimated population of 7,887 by 2030. It is anticipated that the City will comprise approximately 18.0% of the overall County population by the year 2040, as compared to 17.2% in 2010. 2.2 - Planning Documents The following long-range planning documents have been adopted by the City: 2002-2022 General Plan; 2014- 2021 Housing Element (General Plan); and the Yreka Creek Greenway Master Plan. The City of Yreka plans for future growth through the implementation of policies and standards set forth in its General Plan. The General Plan is a long-term, comprehensive framework to guide physical, social, and economic development within the community’s planning area. Yreka’s General Plan is a long-range guide for attaining the City’s goals within its ultimate service area and accommodating its population growth to the year 2022. The City of Yreka General Plan, adopted December 18, 2003, coordinates all components of the 6 Growth rate projections beyond 2020 were based on Yreka’s 2015 population and growth rate. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-2 Growth and Population Projections City’s physical development, and sets objectives, policies and standards which guide future growth within the City’s planning area. Senate Bill (SB) 375 contained a statutory amendment providing an option to applicable transportation agencies to change the update schedules for the Regional Transportation Plan and Housing Element (HE). A Metropolitan Planning Organization (MPO) or Regional Transportation Planning Agency (RTPA) on a five-year Regional Transportation Plan (RTP) update schedule can elect to adopt its RTP every four years. After the election is made, all local governments within the region of the MPO or RTPA change from a five-year to an eight- year HE planning period beginning with the next HE update (Department of Housing and Community Development 2014). The Housing Element also needs to be reviewed and approved by the California State Department of Housing and Community Development (HCD). The City of Yreka Housing Element, while part of the General Plan, is separately bound and was last adopted on May 1, 2014. It is a five-year planning document (2014- 2021). The City’s General Plan provides the foundation and policy base to guide future growth within the City. The City also plans for future growth through the preparation and implementation of Master Plans. The Yreka Creek Greenway Master Plan was last updated in 2016. The first Yreka Creek Greenway Master Plan was prepared in 1989. The plan is intended as a guide for the continued development of a greenway system along Yreka Creek and its tributaries that provides for trails and recreational facilities, while reducing flood hazards, improving water quality, and restoring fish and wildlife habitat. 2.3 - Planning Boundaries The City of Yreka’s current SOI covers approximately 14 square miles of land, including the approximately 10 square miles that comprise the City limits, as well as unincorporated portions of Siskiyou County that may affect the City’s long-term growth and development potential. These boundaries are shown in Figure 1-2 within Section 1.2. SOI boundaries are determined at the point of a city’s ultimate capacity to provide necessary municipal services, and typically correspond to a city’s planning area boundary. According to the City’s General Plan, the established planning area is slightly larger than the SOI and was based on visible ridge lines in order to protect the City’s viewshed from unplanned hillside development. The City is also subject to a water service boundary, established by the State Water Resources Control Board (SWRCB). The current water service boundary is contiguous with the City limits for the most part, but also includes the City-owned property on Phillipe Lane and some properties near the water treatment plant (PACE Engineering, 2016). 2.4 - Annexations The City of Yreka is not actively considering annexations of land within the SOI. It is projected that the majority of new growth in Yreka will occur within the existing City limits. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-3 Growth and Population Projections There are several programs (policies) within the 2022 General Plan related to annexations: Program LU.2.B.: The City may initiate changes to the Sphere of Influence, Water Service Boundary, and any other urban service boundary, to affect an orderly growth of the community. Program LU.2.C.: The City shall periodically review and amend its urban service boundaries. Program LU.2.D.: The City shall provide a land use designation for all land within its Sphere of Influence and may provide a designation for lands outside the Sphere of Influence, but that could have an impact on the future development of the City. Land within the City of Yreka’s SOI boundary may be annexed into the City upon approval by the Siskiyou County LAFCO, thereby transferring land use authority for the land within the SOI from the County of Siskiyou to the City of Yreka. Minor annexations occurred between 2009 and 2010; 2.89 acres were annexed into the City, and a .52-acre strip of land was detached from the City to the Karuk Tribe (PMC, 2014). According to the City’s Housing Element, no previous City-approved annexations have occurred since 1997. Because growth in Yreka is currently slowed due to a sluggish economy, the City is not expected to grow significantly through the addition of new territory to its boundaries in the coming years and, accordingly, major annexations are not anticipated in the near future. According to the City’s 2022 General Plan, the City is currently in transition from a raw materials economy to a services and manufacturing economy. To that extent, the General Plan includes industrial land use guidelines to ensure that adequate land is provided for these businesses. Development needs will most likely be served by infilling vacant lots within the City’s boundaries, but the General Plan does include a future SOI boundary that extends the City’s current eastern SOI boundary to Phillipe Lane. This area contains a large area of land that is designated as Industrial. Existing developed areas within the existing SOI are shown in Figure 2-17. The City of Yreka is definitely considering annexation of the City owned parcels on Phillipe lane immediately south of the City boundaries. This annexation would require modification of the Sphere of Influence boundary. 2.5 - Land Use The City is located within the Shasta Valley, south of the Siskiyou Mountains and north of Mount Shasta. The City is situated at approximately 2,500 feet above sea level. Major access roads include Interstate 5 (I-5) and State Routes (SR) 3 and 263. Development straddles the I-5 corridor stretching for nearly five miles north and south, and two miles east and west. 7 Developed parcels were derived by identifying parcels with an assessed structure value greater than $10,000. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-4 Growth and Population Projections Figure 2-1 Existing Developed Areas within the Sphere of Influence Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-5 Growth and Population Projections According to the DOF, the City’s current population is approximately 7,777. Although it is the most populous city in the county, DOF projections indicate an average annual growth rate of less than 1% for the foreseeable future. The City’s Housing Element points to the decline of the timber industry and lack of replacement jobs as the principal cause for the slow growth rate over the last decade. The predominant land uses within the City are residential (largely single-family properties), industrial, and open space (parks/preserves). Tourism and recreational uses form the primary base of Yreka’s current economy, as the City transitions from a raw materials economy to a services and manufacturing economy. Local business and industry occupations provide employment for approximately 2,470 workers, distributed among several sectors such as healthcare, accommodation and food services, retail, public administration, manufacturing, and education. The City boundaries also contain lands held by the Karuk Tribe. The Karuk Tribe is one of the largest tribes in California, with significant populations in Yreka and Happy Camp (Siskiyou County), as well as Orleans (Humboldt County). All tribal land within the vicinity of the City is located within the City limits and the City’s SOI (PMC, 2010). While the City does not have jurisdiction over the areas outside of its incorporated limits, its General Plan does convey “appropriate” land use designations for unincorporated land within its planning area. The unincorporated area within the City’s planning area primarily includes land designated for low density residential, residential agriculture, and industrial uses. Secondary designations include open space (typically parks, streams, floodway, or flood plain, biological preserves, or other areas unsuited for development) on the western boundary, and general commercial along I-5 in the southern portion of the SOI. The City’s General Plan also requires the establishment of hillside development procedures to preserve the natural views of the ridges surrounding the City, but the City must work with Siskiyou County to curtail such development within its jurisdiction. The City’s 2022 General Plan Land Use Element outlines several programs (policies) relating to land management and development within and surrounding the City. Some of these policies, and the goals they were based upon, which could be seen as applicable to the SOI amendment and MSR process are reiterated below. Program LU.2.A. Following the adoption of the General Plan, the City shall meet with the Local Agency Formation Commission (LAFCO) to assess future needs of the City. Program LU.2.B. The City may initiate changes to the Sphere of Influence, water service boundary, and any other urban service boundary, to affect an orderly growth of the community. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-6 Growth and Population Projections Program LU.2.C. The City shall periodically review and amend its urban services boundaries. Program LU.2.D. The City shall provide a land use designation for all land within its Sphere of Influence and may provide a designation for lands outside the Sphere of Influence, but that could have an impact on the future development of the City. Program LU.3.A. The City shall maintain, and keep current, a list and map of current parcels less than five acres in size that are substantially surrounded by development. The City may also include parcels that are partially developed but that could support significant additional development. Program LU.3.B. Following adoption of the General Plan, the City shall review its zoning code to ensure that it allows flexibility when reviewing infill projects. Program LU.3.C. Following adoption of the General Plan, the City shall determine the practicality of establishing streamlined development review procedures for development of infill parcels identified in Program LU.3.A. Program LU.3.D. The City shall discourage the extension of services outside of the City limits. Following adoption of the General Plan, the City shall establish procedures for the review of such requests. Typical findings for extending services may be based on jobs, public health, and safety, etc. Program LU.6.B. Review Bureau of Land Management (BLM) and National Forest Service plans on nearby lands and coordinate issues with these agencies. Program LU.6.D. Coordinate development activity on private lands, outside of the City that are part of the Yreka view shed, with Siskiyou County as a function of the interagency review process, with the intent of minimizing impact on the local view shed. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-7 Growth and Population Projections Program LU.10.C. Following the adoption of the General Plan, the City shall prepare an inventory of available vacant land, including residential and nonresidential sites. The inventory shall include information concerning the availability of utilities, adjacent roadways, site characteristics and other information useful to potential developers. Program LU.10.D. The City shall periodically review the vacant land inventory to keep it current. The review may be timed to coincide with the annual review of the General Plan. Program LU.10.H. When reasonable and possible, the City shall pursue State and federal funds for activities and infrastructure improvements, which will promote economic growth. Program LU.13.A. As a means to keep the General Plan as current as possible, it shall be updated any time the estimated population has increased 3% or greater for two consecutive years. This update would assess the growth trends and update those elements of the General Plan which may no longer be effective due to the increase in growth not expected in the General Plan. 2.6 - Regional Housing Needs Allocation/Plan (RHNA/P) California's Housing Element Law (Government Code, §65580 et seq.) mandates that a local jurisdiction develop and approve a Regional Housing Needs Allocation (RHNA) to accommodate a share of the region’s projected housing needs as part of the process of updating local housing elements of the General Plan. The HCD is responsible for allocating each region’s share of the statewide housing need to each of California’s Council of Governments (COG), who in turn allocate a share of the region’s housing needs to each of the cities and counties in the region for the planning period. In the case of Siskiyou County, which is a non-COG area, the Siskiyou County Community Development Department is responsible for allocating the RHNA to individual jurisdictions within the County, including Yreka. The 2014-2021 Regional Housing Needs Plan (RHNP) was adopted and submitted to HCD in July of 2012. The RHNP establishes the total number of housing units that the City of Yreka must plan for within a five-year planning period. Based on the adopted RHNP, each city and county must update the housing element of its general plan to demonstrate how the jurisdiction will meet the expected growth in housing need over this period of time. According to the City’s Housing Element, the City of Yreka will need 103 additional housing units based on the anticipated growth between January 1, 2014 and June 30, 2019. Of these 103 units, 42 of them must be designated for extremely low, very low, and low-income individuals. The Housing Element concluded that “the City had adequate appropriately zoned sites, with supporting public services and utilities, to accommodate its housing needs Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-8 Growth and Population Projections over the current planning period”. According to HCD, the City is up to date with annual reporting requirements that provide updates of the implementation of the Housing Element and its policies. Table 2-2 Yreka 2014-2019 Housing Allocation Total # of Projected Units Extremely Very Low Low Moderate Above Needed Based on Growth Low Income Income Moderate Income 103 12 13 17 18 43 (12.2%) (12.2%) (16.3%) (17.3%) (42.1%) Source: City of Yreka General Plan, 2014-2019 Housing Element, 2014City of Yreka General Plan, 2014-2019 Housing Element, 2014 2.7 - Anticipated Service Needs The potential for population growth within the City in the coming years is very limited and highly dependent on the economy. The City of Yreka 2022 General Plan Update directs development and growth to vacant lots within the City through goals and policies that promote infill development. As such, growth beyond the existing City limits of Yreka would seem to be limited until infill development has been exhausted. Infill developments within the City would likely have many existing services within their immediate area such as water, sewer, streets, parks, lighting and/or snowplow services. Furthermore, law enforcement and fire protection services would already be servicing the surrounding properties and would be aware that the new development is within their jurisdiction. As shown in Figure 2-2, there are approximately 951 parcels which can be identified as vacant and within the City (831 parcels, 80.0%) and the SOI (208 parcels, 20.0%). Of these parcels, 233 are government owned. These parcels are in areas serviced by the City or other outside agencies and likely have already been considered in master planning efforts for infrastructure or already monitored by safety-oriented service departments, such as police and fire protection. 2.8 - Determinations Determination 2-1 - U.S. Census data indicates that the City had a 1990 population of 6,925, a 2000 population of 7,284, and a 2010 population of 7,765. Current trends indicate that the City’s population is growing at an average annual rate of less than 1%. Determination 2-2 - Given the City’s recent static population rates, it is difficult to project future population trends with any degree of reliability, but based on the City’s historic growth rates, and current population trends, it is unlikely that the City will reach the projected annual growth rate of 1-2% identified in the General Plan. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-9 Growth and Population Projections Figure 2-2 Vacant Parcels near Yreka Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-10 Growth and Population Projections Determination 2-3 - The City plans for future growth through the implementation of policies and standards set forth in its General Plan. The City’s General Plan was updated in 2003 and is a long-range guide for attaining the City’s goals within its ultimate service area and accommodating its population growth to the year 2022. The City’s General Plan provides a policy base to guide future growth within the City. Determination 2-4 - The City also plans for future growth through the preparation and implementation of Master Plans. Applicable plans for the City include the Yreka Creek Greenway Master Plan. Determination 2-5 – The City’s current water service area boundary is contiguous with its City limits. Determination 2-6 - Present land use in the area includes residential (largely single-family properties), industrial, and open space (parks/preserves). There are not expected to be any substantial changes in the planned land use as a direct result of this review. Determination 2-7 - Present needs for public facilities and services are currently being met. Probable needs for public facilities and services are not currently anticipated to vary from present needs, as future demands are expected to remain relatively the same. No significant growth or population increases are currently anticipated that would affect the City’s ability to provide services. The City does not have any major plans for future expansion of boundaries. Determination 2-8 - As prescribed by the General Plan, the City should periodically review its vacant land inventory, including information concerning the availability of utilities, adjacent roadways, site characteristics and other information useful to potential developers. It is recommended that the City coordinate this process with scheduled SOI updates to determine any modifications that may be necessary. Determination 2-9 – The City’s General Plan Housing Element identified the availability of vacant, residentially zoned sites, with supporting public services and utilities, in excess of the City’s current share of regional housing needs. Determination 2-10 – The City will likely accommodate near-term future growth through infill development areas which are already served by the City or other local agencies that provide municipal services. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 2-11 Disadvantaged Unincorporated Communities SECTION 3 - DISADVANTAGED UNINCORPORATED COMMUNITIES Disadvantaged Unincorporated Communities (DUCs) are defined as inhabited territory (12 or more registered voters) that constitutes all or a portion of a community with an annual median household income that is less than 80% (or $60,188) of the statewide annual median household income (MHI), which was $75,235 as of 2019 (United States Census Bureau, 2019). These communities were identified as an area of concern by SB 244 that was adopted into State law in 2011. These communities may lack essential municipal services such as water or sewer as they may have been developed prior to infrastructure being installed in proximity to them. Pursuant to State law, LAFCo is now required to identify any DUC adjacent to the City and determine if they should be included with any SOI amendment. There are several areas outside the existing City limits that have a median household income below $60,188 annually (Figures 3-1 and 3-2). These areas, all within Census Tract 7.02, are identified as Block Group 1 ($36,367 MHI) and Block Group 2 ($39,417 MHI). It is unclear how many registered voters actually reside in these areas of the SOI, but pursuant to Government Code Section 56430, disadvantaged unincorporated communities may lack water, wastewater, and structural fire protection services. The Yreka Fire Department and the South Yreka Fire District work together under a mutual aid agreement to provide fire services throughout the SOI. However, the City only provides water and wastewater services within the City limits. Based on the information available, it can be determined that, although these areas are currently receiving structural fire protection, some of them should be considered DUCs due to lack of municipal water and wastewater services. 3.1 - Determinations Determination 3-1 – There are areas currently within the City’s Sphere of Influence that can be considered unincorporated disadvantaged communities due to median household income being below 80% of the statewide average. Determination 3-2 – These identified areas currently receive structural fire protection from the Yreka Fire Department and the South Yreka Fire District through a mutual aid agreement. Determination 3-3 – Due to the identified areas not currently receiving the essential municipal services of water, and wastewater, there are communities within the existing Sphere of Influence which may be considered potentially disadvantaged unincorporated community, as shown in Figure 3-2. Determination 3-4 – The City should work with the County to develop a memorandum of understanding stating that any proposed County development adjacent to or within an appropriate distance of the City limits shall comply with City development standards. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 3-1 Disadvantaged Unincorporated Communities Figure 3-1 Median Household Income (2019) Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 3-2 Disadvantaged Unincorporated Communities Figure 3-2 Potential Disadvantaged Unincorporated Communities Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 3-3 Capacity of Facilities and Adequacy of Services Capital Improvement Plan SECTION 4 - PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES AND ADEQUACY OF PUBLIC SERVICES, INCLUDING INFRASTRUCTURE NEEDS OR DEFICIENCIES The purpose of this section is to evaluate the infrastructure needs and deficiencies of the City of Yreka in terms of availability of resources, capacity to deliver services, condition of facilities, planned improvements, service quality, and levels of service. LAFCo is responsible for determining that an agency requesting an SOI amendment is reasonably capable of providing needed resources and basic infrastructure to serve areas within the City and its SOI. It is important that these findings of infrastructure and resource availability are made when revisions to the SOI and annexations occur. LAFCo accomplishes this by evaluating the resources and services to be expanded in line with increasing demands. 4.1 - Capital Improvement Plan The City’s Capital Improvement Plan (CIP) is developed through an evaluation of the City’s capital investment needs to accommodate the community both now and in the future. The CIP reflects the City Council’s goals for capital improvements that implement key deficiencies and needs within the City. The CIP is included within the City’s budget and updated annually. CIP projects are derived from implementation measures outlined in the General Plan, as a means to keep pace with the City’s facilities, infrastructure, and equipment needs. The most recent CIP available on the City’s website was adopted with the City of Yreka Budget for Fiscal Years Ending June 30, 2021 and 2022. Capital projects identified in the budget all enhance the City’s ability to deliver essential municipal services to residents within the City limits. Grants comprise the primary revenue source for infrastructure related improvements. Additional capital funding comes from one-time revenue, fee revenue, reserves, and Measure C, approved by Yreka voters in November 2016. Measure C is a 0.5% increase in the local sales tax implemented to supplement funding for public safety and street repairs. The use of these funds should be reviewed accordingly during the next MSR update for the City. Measure C will help alleviate pressures on General Fund reserves in the current budget cycle, but the development of additional revenue sources to offset rising costs will need to be ongoing. Budget cutbacks made during the recession to fund core services, has resulted in escalating costs for deferred maintenance and the deterioration of capital assets and infrastructure. Capital projects in the 2021/22 budget include: • South asphalt overlay to include water and sewer upgrades • Groundwater mitigation project on Lucas Road Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-1 Capacity of Facilities and Adequacy of Services Capital Improvement Plan • Enhancements of GIS System to integrate parcel-based land use, zoning, and density information into a publicly accessible form. To be used as part of the permit streamline process • Implement kennel improvements • South Oregon Street asphalt overlay to include water and sewer upgrades • Slurry seal and restripe North Street parking lot to accommodate large RVs • Continue crack sealing and chip sealing roads each year • Continue to replace signage with retro reflective • Stripe Center of Miner Street for traffic calming • Building Efficiency: Upgrade heating system ‐ Replace current standalone units with more efficient system (eliminate last remaining heater with pilot light) • Building Improvement: (i) add additional Fleet workshop bay (north side of Fleet building) oversized with pull through capability for oversized vehicle work and temperature control vehicle storage (vac truck), (ii) relocate new air compressor to heated building (new Vac Truck Building), (iii) Build overhead bookshelves in Fleet Manager’s office for all equipment manuals (relocate manuals from Parts Room), and (iv) set up mechanics workstation desk with PC in Fleet Manager’s office • Fuel System: Complete back-up generator setup and paint fuel tanks • Procure snow removal truck blades for new or existing vehicles • Adding soil to top‐dress certain park lawns including the T‐ball field at Ringe Park • Completion of major repairs to parks playgrounds per DKF playground inspection report • Crack sealing and resurfacing the parks’ parking lots • Installing ADA walkway to playground at Lower Greenhorn • Complete the Citywide Radio Read Meter Installation Project; a large push to the finish is in process • Radio read meter installations • Main line valve repairs, vault repair and replacement • Replace the Master Meters at the Fall Creek Pump Station and Filter Plant to improve accuracy and reduce expensive calibration requirements • Dam removal and hatchery improvements. Involved in remaining design and proposed construction projects • Repair lift station bracketry • Replace lift station pumps 4.1.1 - DETERMINATIONS Determination 4.1-1 – The City annually updates the Capital Improvement Plan which identifies key capital projects that are needed in order to enhance services to residents. Determination 4.1-2 – The use of Measure C funds should be reviewed as part of the next MSR update for the City to analyze the impact of the additional revenue on roads, water and sewer improvements and operations. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-2 Capacity of Facilities and Adequacy of Services Water 4.2 - Water 4.2.1 - SUMMARY OF PRIOR MSR FINDINGS The City of Yreka MSR from 2010 identified that the City receives its water supply from the Fall Creek Water Project under a permit from the SWRCB. The Fall Creek Water Project was completed in 1969, and includes a pump station, water treatment facility, and supply lines. The MSR also noted that the City had six booster pump stations to maintain water pressure, and seven treated water storage reservoirs for storage (PMC, 2010). The City’s 2005 Master Water Plan identified numerous infrastructure improvements to increase water service, decrease losses, provide adequate fire flows, and improve fiscal viability of the system. • Complete feasibility study to develop significant additional water supplies and reliable emergency water supply; • Install a fourth pump at the Fall Creek Pump Station to increase capacity to 8.8 MGD; • Install booster pump along Fall Creek Transmission Main; • Install two additional filters to the water treatment plant; • Replace existing booster pumps to increase pump station reliability and meet demands; • Add a new 2.5 MG water storage reservoir; and • Replace old undersized steel mains throughout the City as shown on Plate 3 of the Master Water Plan. In addition, the 2010 MSR identified the following recommended improvements to the City’s municipal water system (PMC, 2010): • Add four filters to the water treatment plant to achieve 9.7 MGD capacity. Add a new filter control system; • Increase available suction pressure and/or improve pump capacity at State Street pump station; • Increase available suction pressure at North Street pump station; • Increase available suction pressure and/or improve pump capacity at Barham pump station; and • Foundation Improvements to the Butcher Hill Water Tank. 4.2.2 - CURRENT CONDITIONS The City of Yreka owns and operates its water supply system, consisting of a supply system, treatment plant, storage reservoirs, pump stations, and distribution piping. The City’s water supply is derived primarily from Fall Creek within an established service area defined by the SWRCB (currently the City limits). Raw water is conveyed from the Fall Creek Pump Station through a transmission line located approximately 23 miles northeast of the City to the City’s Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-3 Capacity of Facilities and Adequacy of Services Water water treatment facility located along the line about seven miles from the City limits. The treatment plant has a capacity of approximately 8.4 million gallons per day (MGD), with maximum daily flows of about 6.4 MGD due to down times for backwash. The City’s water system also includes eight treated storage reservoirs with a total of 7.98 MG of water storage, and approximately 310,000 feet of one-inch to 16-inch diameter distribution pipelines (PACE Engineering, 2016). Water pressure is maintained by six booster pumps located throughout the City, and approximately 350 fire hydrants (PACE Engineering, 2006). The City also has the ability to draw raw water from Yreka Creek using the North Well, as a backup water supply. The North Well is located south of the City’s wastewater treatment facility. The City recently completed improvements at this location, including new pumps, disinfection system, and pipeline connecting it to the City’s distribution system, in order to resolve water quality issues (PACE Engineering, 2016). The City’s 2015 Urban Water Management Plan (UWMP) was completed by PACE Engineering, as an update to the 2010 UWMP consistent with the requirement of the California Water Code. The UWMP documents the City’s current and future water supplies and demands and discusses relevant drivers of water demands and demand management potential, as well as supply reliability. The 2015 UWMP estimated potable and raw water demands at approximately 1,944 million gallons per year (MGY) and 2040 usage at 2,169 MGY. In 2015, the City had an estimated 3,016 connections for residential, commercial, industrial, institutional, and landscape demands. The UWMP notes that the City’s maximum day demand (MDD) at ultimate build-out will be greater than the City’s Fall Creek water right allocation, but that the City is looking into ways to increase local supply reliability, such as utilizing recycled water and using/managing groundwater. As of 2014, all of the City’s service connections were metered in compliance with Assembly Bill (AB) 2572, which requires all municipal users to be metered and billed for usage by 2025 (PACE Engineering, 2016). The City is currently in the process of upgrading all water meters to radio-read meters which will allow for drive-by electronic impulse reading. The City’s water rate structure consists of a fixed monthly service charge, based on meter size, and consumption rates that applies to all water use in excess of 100 gallons per month (PACE Engineering, 2013). Rates were determined through the 2008 Water Utility Rate Study prepared for the City by PACE Engineering and were developed to ensure sufficient revenues to cover the cost of system operations and maintenance necessary for long-term system reliability. An updated Water Utility Rate Study was prepared for the City in 2013 but was not adopted by City Council. The study suggested a modest and incremental 2.5% cost of living increase in rates, but the Council opted to defer increases until an analysis of cost saving measures was conducted. The City is currently performing another utility rate study to evaluate the cost of operations, factoring in needed and completed water and wastewater system improvements, but water enterprise funds remain at FY 2012-13 rates for now (Finance Department, 2016). Funding for water services has in the past come primarily from the City’s Water Fund. The Water Fund is an Enterprise Fund established to account for the operations and maintenance Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-4 Capacity of Facilities and Adequacy of Services Water of, and improvements to the City’s water service utility through user fees (monthly fees as discussed above, and one-time connection fees). Connection fees provide funds for growth- related improvements to the system. The Water Fund is divided into an Operating Fund, Capital Projects Fund, Debt Servicing Fund, and a Reserves Fund. The City currently has debt servicing on a United States Department of Agriculture (USDA) 2010 Certificate of Participation (COP) loan (maturing in 2051). Interest for FY 2021 is $133,106 and principal is $133,000; $266,106 total (City of Yreka, 2020). The Water Fund shows reserve funding availability for capital projects in the City’s Budget for Fiscal Years Ending June 30, 2020 and 2021. The City’s Budget for Fiscal Years Ending June 30, 2020 and 2021 outlines capital expenses of $997,043 in FY 2020-21 and $1,022,400 in FY 2021-22 with funding coming from fee revenues and reserves. Budgeted capital water projects come from the City’s water master planning documents and include: • Complete annual Water Loss Audits and validations • Complete 2020 Urban Water Management Plan Needs and Deficiencies Water infrastructure needs are determined though the City’s 2005 Master Water Plan (completed by PACE Engineering in 2006), scheduled through the Capital Improvement Program and implemented as funds allow. Additional water system infrastructure improvements identified in the Master Water Plan should be pursued as funding becomes available. The City should review capital funding requirements annually. The 2013 Draft Water and Wastewater Utility Rate Study (unadopted) points out that it is not practical to fund high- cost capital infrastructure projects through rate fees alone, and that a portion of Development Impact Fees (DIFs) should be allocated to debt service for immediate growth- related impacts. In addition, the City should continue to pursue Proposition 1 grants for its water infrastructure projects. Considering the fact that there is limited anticipated growth, the City may need to consider allocating a portion of the revenue funds from Measure C to address infrastructure deficiencies until DIFs become a larger portion of General Fund revenues. The City’s current budget contains funding for the update of its Water Master Plan and preparation of a Water and Wastewater Utility Rate Study. These documents will help the City identify necessary water improvements and ensure that water rates are providing sufficient revenues to sustain infrastructure upgrades at levels desired for long-term sustainability. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-5 Capacity of Facilities and Adequacy of Services Water 4.2.3 - DETERMINATIONS Determination 4.2-1 – The City provides water to residents within its water service area (city limits), from the Fall Creek Water Project, under a permit from the State Water Resources Control Board. Determination 4.2-2 – The City’s water treatment plant has a maximum production capacity of approximately 8.4 MGD. Determination 4.2-3 – The City’s 2015 Urban Water Management Plan estimated water usage at approximately 1,944 MGY and 2040 usage at 2,169 MGY. Determination 4.2-4 –The City’s water rate structure consists of a fixed monthly service charge, based on meter size, and consumption rates that applies to all water use in excess of 100 gallons per month. Determination 4.2-5 – The City’s Water Enterprise Fund currently shows reserve funding available for capital projects. Determination 4.2-6 – The City should prepare a Utility Rate Study every five years to ensure that water rates are providing sufficient revenues to sustain infrastructure upgrades. Determination 4.2-7 – The City’s water infrastructure needs are determined through the Master Water Plan. The City last updated its Master Water Plan in 2005. Determination 4.2-8 – The City should continue to implement the improvements identified in the Master Water Plan as needed. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-6 Capacity of Facilities and Adequacy of Services Wastewater 4.3 - Wastewater 4.3.1 - SUMMARY OF PRIOR MSR FINDINGS The City of Yreka MSR from 2010 identified that the City was providing collection, treatment, and disposal of wastewater to City residents within the City limits. The City’s Wastewater Treatment Plant (WWTP) was designed with an average dry weather flow (ADWF) of 2.0 MGD and a peak wet weather flow (PWWF) of 5.0 MGD. In 2006, the WWTP had an ADWF of 0.71 MGD and a PWWF of 6.4. The MSR noted that the WWTP facility was generally in good condition (PMC, 2010). The 2010 MSR also identified that the City’s wastewater collection system consisted of approximately 48 miles of sewer mains and collectors of varying materials and ages, with the oldest being up to 100 years old. The MSR noted that some of the sewers, especially in the City’s core, were in poor condition, leading to significant infiltration and inflow (I&I) of stormwater and groundwater into the sewer system during extremely wet weather. Future infrastructure needs are determined through the City’s Master Sewer Plan (2004) and Wastewater Treatment and Effluent Disposal Expansion Plan (2007), both completed by PACE Engineering. The Wastewater Treatment and Effluent Disposal Expansion Plan identified projects needed to correct deficiencies at the WWTP and provide for growth. Recommended improvements that had not yet been completed, include: • Continue with the comprehensive I&I reduction programs; • Implement the outlined remedial improvements to correct existing deficiencies; • Expand the WWTP effluent disposal facility capacity from 1.0 to 1.4 MGD; and • Budget at least $40,000 per year for replacing and upgrading aging equipment at the WWTP. In addition, the City’s Master Sewer Plan identified the following recommended improvements to the City’s wastewater collection system that had not been completed: • Pursue a comprehensive ongoing I&I Reduction Program and implement it over the next 20 years and continue flow monitoring over this time; • Repair, rehabilitate or replace sewers in the downtown core area; and • Install parallel relief sewers or bypass sewers in some areas of the City to relieve future surcharging. 4.3.2 - CURRENT CONDITIONS Yreka’s wastewater service area encompasses its City limits. The City’s wastewater infrastructure system consists of approximately 48 miles of collection pipelines, a treatment plant, and several lift stations. The Yreka wastewater treatment plant (WWTP) was constructed in 1992 and modified in 2003. The WWTP includes headworks, secondary Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-7 Capacity of Facilities and Adequacy of Services Wastewater clarifiers, chlorine contact basin, aerobic digesters, sludge dewatering system, effluent and micro screening pumping system, subsurface disposal area, and four percolation ponds. The percolation ponds are currently only used to dispose of flows in excess of what the subsurface disposal system can handle (PACE Engineering, 2007). The WWTP is located at the north end of the City, on Highway 263 and provides sewer treatment to 2,769 accounts as of December 2012 (PACE Engineering, 2013). As previously discussed, the plant was designed with an ADWF of 2.0 MGD and a PWWF of 5.0 MGD. In 2006, the WWTP had an ADWF of 0.71 MGD and a PWWF of 6.4 MGD. These high PWWFs are due to I&I of groundwater and stormwater seeping into the system during wet weather and are extremely taxing on the WWTP (PACE Engineering, 2007). According to the City’s website, the City completed major upgrades to its wastewater system in 2016 to correct deficiencies, improve efficiency, reduce excessive inflow and infiltration in the wastewater collection system, and assure that the plant and collection systems continue to meet State and federal standards. The City’s wastewater rate structure consists of a fixed monthly service charge, with a $2.00 per month discount available for single-family residences with household incomes below the City’s target income level (PACE Engineering, 2013). Rates were determined through the 2008 Water Utility Rate Study prepared for the City by PACE Engineering and were developed to ensure sufficient revenues to cover the cost of system operations and maintenance necessary for long-term system reliability. An updated Water Utility Rate Study was prepared for the City in 2013 but was not adopted by City Council. The study suggested a modest and incremental 2.5% cost of living increase in rates, but the Council opted to defer increases until an analysis of cost saving measures was conducted. The City is performing another utility rate study to evaluate the cost of operations, factoring in needed and completed water and wastewater system improvements, but wastewater enterprise funds remain at FY 2012-13 rates for now (Finance Department, 2016). Funding for wastewater services has in the past come primarily from the City’s Wastewater Fund. The Wastewater Fund is an Enterprise Fund established to account for the operations and maintenance of, and improvements to the City’s wastewater service utility through user fees (monthly fees as discussed above, and one-time connection fees). Connection fees provide funds for growth-related improvements to the system. The Wastewater Fund is divided into an Operating Fund, Capital Projects Fund, Debt Servicing Fund, and a Reserves Fund. The City currently has debt servicing on a USDA 2012 COP loan (maturing in 2054) and a State Water Resources loan (maturing in 2023). Interest on the COP loan for FY 2020- 21 is $123,544 and principal is $83,000; $206,544 total. The State Water Resources loan on for FY 2020-21 total is $283,387 total (City of Yreka, 2020). The Wastewater Fund shows reserve funding availability for capital projects in the City’s Budget for Fiscal Years Ending June 30, 2020 and 2021. Table 4-1 provides a summary of Wastewater Operating Fund expenditures for FY 2018-19 through FY 2020-21. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-8 Capacity of Facilities and Adequacy of Services Wastewater Table 4-1 Wastewater Operations Fund Expenditures FY FY FY Source 2018/2019 2019/2020 2020/2021 Actuals Budget Budget Salary $368,712 $488,724 $557,668 Contract Services $34,103 $122,097 $131,400 Repairs, Maintenance & Utilities $373,072 $505,886 $510,000 Materials & Supplies $187,027 $250,687 $235,400 Insurance, Taxes, Fines & Fees $41,405 $58,000 $59,043 Non-Capitalized Equipment $29,328 $7,000 $7,000 Transfer Out $194,979 $209,832 $216,530 Total $1,228,626 $1,642,226 $1,522,041 Source: City of Yreka Budget for Fiscal Years Ending June 30, 2020 and 2021. The budget increase in FY 2020-2021 is due (City of Yreka, 2020): • Overall wages and benefits increased by cost of salaries, pensions, and other post- employment benefits (retiree health insurance) OPEB. • Public Works administrative staff labor costs (director, municipal projects, manager, and geographic information systems technician) increased due to changes in employee distribution to reflect expected work effort within the water enterprise funds for grant and capital projects in fiscal 2020-21. The City’s Budget for Fiscal Years Ending June 30, 2020 and 2021 outlined in the City’s Water master planning document include: • South Oregon STIP - water utilities replacement $100,000 in fiscal year 2020-21. • State Route Hwy 3 underground utility replacement $500,000 in fiscal year 2020-21. The City is in the process of applying for USDA Certificate of Participation financing for this capital project. • Short lived asset replacement $260,797 in 2020-21 and $268,621 (e.g., pumps, filters). Regular replacement of short-lived assets, such as equipment is a requirement of the City’s debt agreement with USDA. Needs and Deficiencies Wastewater infrastructure needs are determined though the City’s Sewer Master Plan and the Wastewater Treatment and Effluent Disposal Expansion Plan. All capital projects are scheduled through the Capital Improvement Program and implemented as funds allow. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-9 Capacity of Facilities and Adequacy of Services Wastewater Additional wastewater system infrastructure improvements identified in the City’s Sewer Master Plan should be pursued as funding becomes available. The City should review capital funding requirements annually. The 2013 Draft Water and Wastewater Utility Rate Study (unadopted) points out that it is not practical to fund high- cost capital infrastructure projects through rate fees alone, and that a portion of development impact fees (DIFs) should be allocated to debt service for immediate growth- related impacts. In addition, the City should continue to pursue Proposition 1 grants for its wastewater infrastructure projects. Considering the fact that there is limited anticipated growth, the City may need to consider allocating a portion of the revenue funds from Measure C to address infrastructure deficiencies until DIFs become a larger portion of General Fund revenues. The City’s current budget contains funding for the update of its Sewer Master Plan and preparation of a Water and Wastewater Utility Rate Study. These documents will help the City identify necessary water improvements and ensure that water rates are providing sufficient revenues to sustain infrastructure upgrades at levels desired for long-term sustainability. 4.3.3 - DETERMINATIONS Determination 4.3-1 – The Yreka WWTP provides sewer treatment to approximately 2,769 residential and commercial accounts located within the City limits. Determination 4.3-2 – The Yreka WWTP was designed with an average dry weather flow (ADWF) of 2.0 MGD and a peak wet weather flow (PWWF) of 5.0 MGD. In 2006, the WWTP had an ADWF of 0.71 MGD and a PWWF of 6.4 MGD. Determination 4.3-3 – The City’s water rate structure consists of a fixed monthly service rate with a discount available for low-income households. Determination 4.3-4 – The City’s Wastewater Enterprise Fund currently shows reserve funding available for capital projects. Determination 4.3-5 – The City’s wastewater infrastructure needs are determined though the City’s Sewer Master Plan and the Wastewater Treatment and Effluent Disposal Expansion Plan. The City last updated its Sewer Master Plan in 2004. Determination 4.3-6 – The City should prepare a Utility Rate Study every five years to ensure that wastewater rates are providing sufficient revenues to sustain infrastructure upgrades. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-10 Capacity of Facilities and Adequacy of Services Storm Drainage 4.4 - Storm Drainage 4.4.1 - SUMMARY OF PRIOR MSR FINDINGS The City of Yreka MSR from 2010 identified that the City was providing adequate flood control and drainage services through a series of underground pipes and concrete boxes. However, it was noted that the City had experienced flooding during times of heavy rainfall and snow melt. Future infrastructure needs are determined through the City’s Master Plan of Drainage, completed for the City by Willdan in 2005, which identifies approximately $3.7M worth of improvements. Many recommended improvements were completed in 2008 as part of the Stormwater Attenuation and Floodplain Restoration Project, including the following (PMC, 2010): • Creation of three storm drain detention basins (to be constructed); • Replacement of undersized storm drain pipes located in Yreka and Center Streets; • Excavation of Greenhorn Reservoir to allow for increased stormwater detention; • Yreka Creek floodplain restoration to increase stormwater storage within the floodplain and improve habitat; and • Greenhorn Creek floodplain restoration to increase stormwater storage within the floodplain and improve habitat. 4.4.2 - CURRENT CONDITIONS The City of Yreka Public Works Department maintains a storm drain system that is separate from the sewer system. Urban runoff from areas located within the City limits is primarily discharged to the Shasta River, via Yreka Creek and its many tributaries, including Humbug and Greenhorn Creeks. The drainage infrastructure comprises natural waterways, concrete boxes, and a variety of different types of pipes (clay, concrete, and corrugated metal) below the City’s streets. Within roadways, much of the stormwater travels along curbs, gutters, and other inlets within the right-of-way. The City has a Master Plan of Drainage that was prepared in 2005 and updated in 2013. The Master Plan evaluated these storm drain facilities, and found that, in some instances of heavy rain or snow melt, the system was incapable of intercepting and conveying flows, resulting in localized flooding. Areas of flat streets, inadequately sized connections between streets and creeks, and undersized creek capacities all contribute to the system’s inability to carry large storm flows (Willdan, 2005). The Master Plan identified 31 storm drainage improvement projects. The Budget for Fiscal Years Ending June 30, 2020 and 2021 includes $127,005 mostly for salaries, maintenance/operations, and weed abatement. Funding for these services has in the past come primarily from the City’s Gas Tax Fund with transfers in from the General Fund to cover operating deficiencies, but these transfers are not sustainable in the long-term. In addition, system improvements associated with the City’s Municipal Separate Storm Sewer Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-11 Capacity of Facilities and Adequacy of Services Storm Drainage System (MS4) permit includes a Trash Amendment. The City does not have a separate Drainage Fund (Enterprise Fund) established to account for the operations and maintenance of the City’s drainage system through user fees but is evaluating methods for funding the system in light of emerging MS4 compliance issues (PMC, 2003). The MS4 Program is regulated by the SWRCB. Implementation of the MS4 permit is listed in the current budget as the City’s chief priority for Public Works with regards to storm drains. Other goals listed include: • Complete minor projects in Storm Drain Master Plan • Compete repairs from Master Plan list and continue flushing program • Install MS4 compliant wash rack at Municipal Service Center • Purchased a new vacuum combination truck to be used for the maintenance and repair of both drinking water and stormwater infrastructure The City is currently managing several grant projects for storm water corridor preservation and drainage, primarily along Yreka Creek, to ensure compliance with the MS4 permit. They also recently hired a consultant to conduct a stormwater program audit to identify gaps in the system and make recommendations on ways to comply with regulatory obligations. Needs and Deficiencies Storm drain infrastructure needs are determined though the City’s Master Plan of Drainage and scheduled through the Capital Improvement Program. Capital improvements identified in the City’s Budget for Fiscal Years Ending June 30, 2019 and 2020 include the following: • Flushing and root ripping of debris-laden storm drains • Clearing of inlets and culverts • Storm water management compliance • Install Track 1 devices near outfalls In addition to immediate storm drain needs, the City should continue to implement the improvements identified in the most recent Master Plan of Drainage/Storm Drain Master Plan, as funding allows. 4.4.3 - DETERMINATIONS Determination 4.4-1 – The City maintains a storm drainage system that is separate from the sewer system. Determination 4.4-2 – The City’s storm drain infrastructure needs are determined through the Master Plan of Drainage. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-12 Capacity of Facilities and Adequacy of Services Storm Drainage Determination 4.4-3 – The City utilizes a Capital Improvement Program, transportation funds, and grant funding to aid in the maintenance and upgrades of storm drainage within the City limits. Determination 4.4-4 – The City has unfunded storm drain needs associated with MS4 regulatory compliance and should consider managing the storm drain system as an Enterprise Fund. Determination 4.4-5 – The City should continue to implement the improvements identified in the Drainage Master Plan as funding allows. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-13 Capacity of Facilities and Adequacy of Services Road Maintenance 4.5 - Road Maintenance 4.5.1 - SUMMARY OF PRIOR MSR FINDINGS The City of Yreka MSR from 2010 concluded that the City was maintaining streets and roads as needed, but that this method would be inadequate for long-term maintenance. The City had many road projects planned within the 2008 Siskiyou County RTP, but the plan was experiencing a funding shortfall for both State and local road projects, and of the 41 projects identified in the RTP, only one had been completed (PMC, 2010). 4.5.2 - CURRENT CONDITIONS The City’s Public Works Department, through its Maintenance Division, maintains the City’s roadway infrastructure and necessary facilities. The Maintenance Division services the roadways by providing pavement patching, street striping, sign installation and removal, street lighting, street sweeping, snow removal, storm drain maintenance, weed abatement, and maintenance of public parking lots. The Department’s Engineering Division administers the majority of the City’s traffic infrastructure projects. The City’s current roadway infrastructure includes approximately 49 center-line miles of arterial, collector, local, and private streets (Finance Department, 2016). Several of the City’s streets connect to I-5, which bisects the City. The Maintenance Division has their own equipment, tools, and materials to maintain the streets and roadway facilities. The Maintenance Division also maintains the storm drains that remove water from the streets. The Maintenance Division provides snowplow services to City streets when a snow depth of six inches is measured at the intersection of Discovery Street and Northridge Drive (City of Yreka, 2018). Caltrans is responsible for removing snow from SR 3 and SR 263, which includes Main Street, Montague Road, and Fort Jones Road. The overall quality of the roadway infrastructure within the City is mixed, depending on location and frequency of maintenance. The City considers most of the street system to be generally adequate to accommodate existing uses. However, portions of the current roadway infrastructure are aging and deteriorated, due to deferred maintenance and inadequate funding available for maintenance. During the recession, the City opted to temporarily defer non-essential expenses, such as street repair. However, many streets are now in danger of needing full reconstruction if repairs are not made in the near future (Finance Department, 2016). The City updated its Pavement Condition Index Report for City Streets in 2015. The City’s streets averaged a score of 51, which is in the “fair” category. Repair costs to keep City streets at a maintainable level was estimated at $30M; beyond the scope of budget cuts (Finance Department, 2016). In response, the City has pledged to allocate a portion of the revenue funds from Measure C to address roadway infrastructure improvements. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-14 Capacity of Facilities and Adequacy of Services Road Maintenance The City’s Budget for Fiscal Years Ending June 30, 2020 and 2021 includes $753,597 for streets in FY 2020-21; $328,004 from the Gas Tax and Traffic Congestion Fund, $60,000 from the Local Transportation Fund (LTF), and $55,495 from the Traffic Safety Fund (City of Yreka, 2020). This budget includes funding for staff compensation, operating expenses (traffic lights, road signage, and street markings), and capital outlay (LED streetlight conversion). Primary operating funds for the City’s roadway infrastructure comes from the City’s General Fund (transfer in to cover deficits) and taxes. The majority of LTF received by the City go to support regional transportation (STAGE, Siskiyou Transit and General Express). Additional funding comes from the State Transportation Improvement Program (STIP) and other State and federal grants. The Maintenance Division consists of seven maintenance workers, overseen by a Maintenance and Operations Manager and the Public Works Director (Finance Department, 2016). Administrative staff split time between Maintenance and other Public Works divisions. The 2016 Siskiyou Regional Transportation Plan had programmed $162,000 for the Oregon Street, Miner Street to north end project, and $867,000 for the S. Oregon: 4-H to Lawrence project. The 2018 Siskiyou County Regional Transportation Improvement Plan showed an increase in cost to both projects (refer to Table 4-2): Table 4-2 Yreka Road Projects Construction Route Description Cost Year Oregon St, Miner Street to north Rehabilitate $135,000 2018 end roadway S. Oregon: 4-H to Lawrence Rehabilitate $147,000 2020 roadway Note: Construction year is anticipated. Source: (Siskiyou County , 2018) Funding for the listed projects is expected to come from STIP/Regional Surface Transportation Program (RSTP), and local funds. The current 2016 RTP lists an additional $9,088,000 worth of unconstrained (long-range) road projects for the City of Yreka. However, Siskiyou County Transportation Commission (SCTC) is currently developing the 2021 RTP. To encourage community involvement, SCTC offered a virtual community meeting on February 9th, 2021, from 4:30-6:00 pm, and a survey you could access via QR code located on the SCTC website. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-15 Capacity of Facilities and Adequacy of Services Road Maintenance The updated 2021 RTP will also be updated to ensure compliance with the 2017 Regional Transportation Plan Guidelines for Regional Transportation Planning Agencies. As well as provide guidance for a multi-modal transportation system. 4.5.3 - DETERMINATIONS Determination 4.5-1 – The City actively maintains the existing road systems and provides street sweeping and snow removal services within the City limits, with the exception of State Highways. Determination 4.5-2 – The City utilizes a Transportation Improvement Program, reimbursements from Gas Tax, grant funding (such as RSTP), and Measure C to aid in the repair and maintenance of existing roadways within the City limits. Determination 4.5-3 – The City constructs transportation improvements through the implementation of goals and policies set forth in the City’s General Plan Circulation Element, and other plans, including the 2016 Siskiyou County Regional Transportation Plan. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-16 Capacity of Facilities and Adequacy of Services Law Enforcement 4.6 - Law Enforcement 4.6.1 - SUMMARY OF PRIOR MSR FINDINGS The City of Yreka MSR from 2010 identified that the City was providing a wide range of services associated with law enforcement. Those services included public protection, investigations, parking enforcement, animal control, and community services. The City also maintained a mutual aid agreement with the Siskiyou County Sheriff’s Department (PMC, 2010). Among the deficiencies identified was the need for one additional sworn officer and two part-time dispatchers. Long term, the need for a new police station was identified. 4.6.2 - CURRENT CONDITIONS The Yreka Police Department provides law enforcement services to the residents of the City through a combination of full-time and part-time staff. The Police Department is a full- service police department providing public safety, investigative services, drug education, parking enforcement, and animal control, as well as other non-law enforcement services. The City’s Budget for Fiscal Years Ending June 30, 2020 and 2021 includes $3,175,786.71 in FY 2020-21 for police services (including dispatch and code enforcement), which is approximately 50% of the City’s general operating budget, and the largest share of total General Fund expenditures. The Yreka Police Department operates with 20 full-time and four part-time employees (Finance Department, 2016). The Patrol Division is led by the Police Chief and supervised by a Lieutenant. Dispatching is provided by five full-time and four part-time dispatchers. The Department also has one Reserve Police Officer, and four civilian volunteers that assist with non-essential duties. The Department is currently recruiting for officers and part-time dispatchers. The City does not have an adopted standard for sworn officers per 1,000 residents within the General Plan. With the current budget the Department is at a ratio of 1.9 sworn officers (15 sworn officers) per 1,000 residents (7,777 residents). This ratio is lower than the ratio of 4.2 sworn officers per 1,000 residents for the Western region of the United States for cities whose population is below 10,000 residents (Federal Bureau of Investigation, 2016). However, the General Plan Public Health and Safety Element determined that, barring a large increase in population, 15 sworn officers would be adequate to provide police protection needs through 2022 (PMC, 2003). In addition to law enforcement services, the Yreka Police Department is also responsible for several other duties. Under direction of an Animal Control Officer the Department handles all domestic animal calls within the City and issues dog licenses, consistent with Title 8 of the City’s Municipal Code. The Animal Control Officer also provides parking enforcement, as Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-17 Capacity of Facilities and Adequacy of Services Law Enforcement needed, to ensure compliance with Title 10 of the City’s Municipal Code. The Department also provides community services through programs such as, child car seat inspections, free car seats to those in need, and bike helmets for children. The Police Department maintains a mutual aid agreement with the Siskiyou County Sheriff’s Department. The County Sheriff’s Department is responsible for providing safety services to the unincorporated areas within the Yreka SOI (PMC, 2003). Facilities and Equipment The Yreka Police Department moved from 412 W. Miner Street to 1400 Fairlane Road. The facility was newly remolded in 2018 to meet the demands required from emergency service operations effectively. The newly remolded facility is a single story 10,000 square feet building. The building includes a lobby, an office for dispatch and administration, an Emergency Operations Center room, four interview rooms, an armory, an exercise room, two locker rooms and several other offices to meet the police department’s various demands. The facility and its parking lot also include a perimeter wall with a remote-controlled access gate. The station does not have a jail facility, so all individuals arrested in the City are taken to the Siskiyou County Jail for booking located at 315 S. Oregon Street. The building that houses the station was originally built in 1915 and is continual need of repairs and upgrades due to its age. A Needs Assessment Report developed for the Police Department in 2012, concluded that “The existing multi-level facility no longer meets the space needs of the Department, and does not provide appropriate public and employee access for persons with disabilities, as required by the Americans with Disabilities Act and the California Building Code. Due to the extensive age of the facility and the raised floor design, the removal of hazardous materials required to complete renovation and the necessary re-design for accessibility to the facility point towards options other than renovation of the existing building.” In response, the City purchased a building at 1400 Fairlane Road in 2014 to meet the needs of police operations, and architectural plans for redevelopment of the building were drawn up. The new building is located in the southern area of the City, east of I-5. The City Council has recently approved a bid for development of the project, and construction of the new police facility is had begun. The project is being funded from the Crandall Trust, a bequest fund designated for infrastructure projects, and reserves that were allocated to this project in FY 2013-14 and FY 2015-16. Infrastructure and capital needs are determined by the Police Chief, approved by the City Council, and financed through the City’s General Fund (reserves) and/or one-time grants. The Siskiyou County Sheriff’s Department is located southwest of the Siskiyou County Jail at 305 Butte Street in Yreka. This station serves as the main headquarters of the County Sherriff’s Department. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-18 Capacity of Facilities and Adequacy of Services Law Enforcement Crime Statistics Crime statistics for Yreka were obtained from the Federal Bureau of Investigations (FBI) and are shown in Table 4-3 below. Table 4-3 2014-2019 Reported Crime Statistics (Category I Crimes) Category 2014 2015 2016 2017 2018 2019 Population 7,558 7,507 7,559 7,564 7,573 7,527 Violent Crime 62 47 54 51 37 28 Murder/non-negligent 1 0 0 0 1 1 manslaughter Rape 1 4 2 5 2 N/A Robbery 2 4 3 2 2 1 Aggravated Assault 59 38 48 43 33 27 Property Crime 298 309 268 213 221 235 Burglary 75 85 74 57 38 34 Larceny-theft 200 188 152 113 164 172 Motor vehicle theft 23 36 42 43 19 29 Arson 3 1 3 1 0 0 Total Reported Crimes 360 356 322 264 258 263 Source: www.fbi.gov, UCR Program, Offenses known to Law Enforcement tables It appears that there was a drop-in criminal activity in 2016 when compared to the prior two years. However, the City should continue to monitor crime statistics in the coming years to determine if 2016 was an anomaly. Monitoring statistics allows the City to determine when there is a need for an additional officer to curtail an increase in crimes and act accordingly with appropriate staffing and funding. Since the anomaly in 2016, crimes had continued to decline until 2019. 2019 marked in an increase of 56 reported cases from the previous year. Police Funding Sources Functional revenues for the Police Department are comprised of various grants, as well as Proposition 172 public safety sales tax funds and development impact fees. Proprietary funds used to finance police services include Citizens Option for Public Safety (COPS) Funds, Peace Officer Standards and Training (POST) Funds, and donated funds. AB3229 COPS GRANT COPS Funds are State of California public safety grants. The requirements for this fund are broad and allow for discretion on the part of the suitability of the expenditure as long as the expenditure of the funds is not displacing General Fund monies. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-19 Capacity of Facilities and Adequacy of Services Law Enforcement POLICE CERTIFIED TRAINING/PEACE OFFICER STANDARDS AND TRAINING (POST) The State of California through POST provides reimbursement for law enforcement training. The Police Department actively sends officers, supervisors, and non-sworn personnel to POST training. The majority of the training is reimbursed, but some training costs are shared with the Department. DONATED FUND The Donated Fund is comprised of monies generated though special activities from recurring community donors. The funds pay for youth scholarships in law enforcement, travel, and shelter assistance, as well as public contributions to other programs, like animal control. Needs and Deficiencies As previously stated, The Yreka Police Department has a ratio of 1.9 sworn officers per 1,000 residents, which is lower than the 4.2 sworn officers per 1,000 residents for the Western region of the United States for cities whose population is below 10,000 residents. An increase of reported crimes increased in 2019; however, it is less than a one percent increase. The General Plan Public Health and Safety element find the current coverage adequate through 2022. The City should secure grants to add to the current staff of sworn officers to the department. 4.6.3 - DETERMINATIONS Determination 4.6-1 – The Police Department is responsible for animal control and parking enforcement, in addition to law enforcement services. Determination 4.6-2 – The City utilizes a variety of financing sources in order to offset the expenditures utilized by law enforcement. Determination 4.6-3 – The City should continue mutual aid agreements with other local and regional law enforcement agencies in order to enhance response capabilities within and around the City limits. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-20 Capacity of Facilities and Adequacy of Services Fire Protection 4.7 - Fire Protection The City of Yreka MSR from 2010 identified that the City was providing a wide range of services associated with fire protection. Those services included structure fires, vegetation fires, traffic collisions, medical assist and 911 calls. The City also responded to calls outside of the City limits through mutual aid agreements with all other fire protection agencies in Siskiyou County (PMC, 2010). Future staff needs identified included one full-time Chief and one part-time Administrative Executive. It was noted that the station was in need of new roofing, asbestos removal, and a snorkel system to allow engine idling without carbon dioxide buildup. Among the major infrastructure deficiencies identified was the need for a complete remodel of the engine bays to accommodate modern fire suppression equipment. 4.7.1 - CURRENT CONDITIONS The Yreka Volunteer Fire Department (YVFD) provides fires services to the residents of the City through a combination of paid and volunteer fire fighters. The YVFD provides fire protection, emergency medical response, and rescue services to the City of Yreka. The Department responds to approximately 1,400 fire and medical emergency calls per year, 80% of which are medical-related (City of Yreka, 2018). The City’s Budget for Fiscal Years Ending June 30, 2020 and 2021 includes $625,486.95 for fire services, which is 5% of the City’s general operating budget. Funding for these services has in the past come primarily from the City’s General Fund, followed by revenue from the Fire Assessment Tax. The Fire Assessment Tax is the result of a special ballot Measure H passed in November 2006, to assess property owners a tax on property to support fire related services, primarily capital outlay. Every January the fire tax receives a cost-of-living adjustment. In January 2020, a single-family residence was assessed at $7.04 per month (City of Yreka, 2020). According to the City’s Budget for Fiscal Years Ending June 30, 2020 and 2021, fire tax receipts are budgeted at $267,500 for FY 2020-21. The City also acquires additional monies through several donation accounts and conducts several fundraising events throughout the year. The YVFD operates with a staff of 25-30; two paid staff, including a Fire Chief (which was completed funded and filled in 2020), and a part-time Fire Secretary, and 23-28 volunteers who receive a nominal stipend per call (Finance Department, 2016). All YVFD members are required to be certified in first aid and CPR on a yearly basis. Some of the members also have First Responder, EMT or EMT II certificates (City of Yreka, 2020). The YVFD is managed by an Executive Board of seven voting members, and four non-voting members/officers. Facilities and Equipment The Yreka Volunteer Fire Department facility is located at 401 W. Miner Street, across the street from the Yreka Police Department. The fire station is approximately 10,630 square Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-21 Capacity of Facilities and Adequacy of Services Fire Protection feet, with six vehicle bays, equipment storage, a meeting/training room, restrooms, and administrative offices. Recent upgrades include electrical updates within the station to increase safety and efficiency, which will save the City money over time (Finance Department, 2016). The station also houses a 2,500 square foot addition that is used as a fire museum. Infrastructure and capital needs are determined by the Fire Chief, approved by the Executive Board, and financed through the City’s General Fund and Fire Assessment Tax. The Fire tax receipts are projected at $267,5000 for Fiscal Years ending June 30, 2020 and 2021 with an interest earnings of $2,500. The annual tax may increase based upon the Engineering New Record, Construction Cost Index. The budgeted expenses are for equipment acquisition and det servicing. The Fire Station facilities replacement study budgeted for FY 2020-21 is $15,000. Mutual Aid Agreements The YVFD maintains mutual aid agreements with CAL FIRE, the U.S. Forest Service, and the South Yreka Fire District. Mutual aid is provided upon request (usually at the scene) by the responding fire department, allowing for a substantial increase in fire protection both within the City and the SOI. Needs and Deficiencies The Department operates under a recently hired full-time Fire Chief. Additionally, there is a continuing need to recruit additional, and younger, volunteers for the Department; the YVFD is authorized to have 50 volunteers, but currently only has between 25 and 30. Also, the station bays should be remodeled to accommodate modern fire equipment. 4.7.2 - DETERMINATIONS Determination 4.7-1 – The City provides fire protection, emergency medical response, and rescue services to the citizens of Yreka through the Yreka Volunteer Fire Department. Determination 4.7-2 – The City funds fire protection services through the use of General Fund revenues and a Fire Assessment Tax. Determination 4.7-3 – The City should continue to program repairs to existing facilities in order to meet the needs of staff to provide a level of service acceptable to residents. Determination 4.7-4 – The City should continue mutual aid agreements with adjacent agencies in order to provide overlapping and supplemented service within the City limits and SOI. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-22 Capacity of Facilities and Adequacy of Services Parks and Recreation 4.8 - Parks and Recreation 4.8.1 - SUMMARY OF PRIOR MSR FINDINGS The City of Yreka MSR from 2010 identified that there were 12 parks offering recreational opportunities for the residents of Yreka. It was also noted that the City was working closely with the local YMCA for the provision of recreational services within the community (PMC, 2010). As of 2010, it was found that the City had approximately 426 acres of park and recreation land, amounting to a ratio of roughly 57 acres to 1,000 persons. This ratio is well in excess the City’s adopted standard (3-5 acres per 1,000 people), so it was determined that the City had more than adequate parks and recreation facilities to accommodate planned growth. 4.8.2 - CURRENT CONDITIONS The City of Yreka does not maintain a parks department. The maintenance and operation of all City parks and recreation facilities are carried out by the Maintenance Division of the Public Works Department, while City Administration determines the scope of work and establishes all future park needs and uses (City of Yreka, 2018). The City utilizes volunteers and community organizations to offset the cost of staff. Budgeting is accounted for within the Public Works budget. Fees are charged to reserve picnic areas. The recreation facilities available for use by the public include eight parks, a baseball field, and greenway corridor (trails). GREENHORN PARK Greenhorn Park is Yreka’s largest park at approximately 400 acres. It is located in the southwest portion of the City, with entrances on Greenhorn Road and Ranch Lane. The park was acquired by the City in 1959 and is the home of the Greenhorn Reservoir. Upper Greenhorn includes a picnic area, playground, field, restrooms, log cabin information center, and a gold mining ghost town. Lower Greenhorn includes picnic areas, a playground, horse- shoe pits, community soccer field, and restrooms. Trails meander throughout the park area. According to the City’s website, the park is used for a variety of activities, including Yreka Youth & Adult soccer, cross-country meets, mountain bike races, and fishing tournaments. Park improvements are guided by the 2004 Greenhorn Park Master Plan Design Study, prepared by Alan Pardee Landscape Architect Land Planning Consultant. MINER STREET PARK Miner Street Park is a five-acre park located on the corner of Miner Street and Gold Street, just blocks from historic downtown. Park facilities include tennis courts, a softball field, playgrounds, picnic areas, water fountains, and restrooms. The park is used for adult softball, Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-23 Capacity of Facilities and Adequacy of Services Parks and Recreation youth football, and the Summer Concert Series. The park is also the home of the Yreka Skate Park. RINGE PARK At almost 4.5 acres, the Ringe Park is the largest sports complex in Yreka. The park consists of Little League baseball fields, stadium seating, a snack shack, playground, and picnic areas. According to the 2010 MSR prepared for the City, the pool facility was in poor condition and in need of improvements. Work was done to patch holes and cracks in the pools lining, but the pool was closed indefinitely in the summer of 2017 when large cracks appeared at the bottom of the pool (Smith, 2018). The City is currently working to determine the extent of the damage, and Yreka Splash has set up a GoFundMe page, seeking $100,000 in donations to cover the cost of repairs. The City’s Budget for Fiscal Years Ending June 30, 2021 and 2022, also includes the funding and design of the Ringe Pool Roof Replacement as a Public Works goal. SHASTA AVENUE PARK Shasta Avenue Park is a 4.7-acre neighborhood park, located on Shasta Avenue, near Jackson Street and Evergreen Elementary Schools. The park is used for Ponytail Softball, as well as youth and adult soccer. Park facilities include multiple ball fields, an open field, and a concession stand. DISCOVERY PARK Discovery Park is an almost two-acre neighborhood park, located between Yama Street, Discovery Street, and Park Place. Park facilities include an open field, picnic area, playground, and restrooms. LEWIS PARK Lewis Park is a 1.3-acre neighborhood park, located at the corner of Lewis Street and Lawrence Lane. Park facilities include an open grass area and playground. NEWTON SPORTS PARK Newton Sports Park is a 1.3-acre neighborhood park, located at the corner of Oregon Street and Knapp Street, near Yreka High School. Park facilities include basketball courts, volleyball courts, and training structures. NATIVE AMERICAN HERITAGE PARK The Native American Heritage Park is a small half-acre park, located on Miner Street across from the Yreka Police Station. The park honors the local tribes of Northern California with a memorial sculpture and information boards. Park facilities include a picnic area. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-24 Capacity of Facilities and Adequacy of Services Parks and Recreation HIBBARD FIELD Hibbard Field is a 2.5-acre Babe Ruth baseball field located on the Siskiyou Golden Fairgrounds. The fairground property is owned by State of California, but the City contributes maintenance to the field. YREKA CREEK GREENWAY The Yreka Creek Greenway is envisioned to be a five-mile network of greenway corridors spanning the length of the City along Yreka Creek and Greenhorn Creek. The greenway is intended to reduce flood hazards, improve water quality, and improve habitat along the corridors. The Yreka Creek Master Plan Update was completed in 2016. The update includes recommended phasing and estimated costs for planned improvements along the greenway. To date, the Yreka Creek Greenway includes a visitor’s center, an outdoor classroom facility, and several natural trails with picnic areas. The Oberlin Trail project is the most recent addition. SISKIYOU FAMILY YMCA The Siskiyou Family YMCA is a local association of the YMCA, that was developed to provide recreational programs and activities for the community of Yreka. It is located on Foothill Drive, on land that was donated to the City and transferred to the YMCA for recreational purposes. Activities include youth and adult sports leagues, camps, arts & enrichment programs, fitness classes, and whitewater rafting. Facilities include a climbing wall and a Youth Activity Center (YMCA, 2018). ADDITIONAL FACILITIES In addition to the listed parks and sports facilities, the City owns the Yreka Community Center and the Yreka Theater. The Community Center includes an open floor area, classrooms, offices, a kitchen, and restrooms. The theater includes a large stage, auditorium seating, lighting and sound system, and restrooms. Both facilities are available to rent for events. Needs and Deficiencies The existing parks and recreational facilities within the City provide more than 420 acres of recreational land for the roughly 7,777 inhabitants of Yreka. This ratio of approximately 54 acres per 1,000 persons exceeds the City’s adopted standard of three to five acres per 1,000 persons (population). In addition, complete development of the Yreka Creek Greenway will provide additional trails and recreational facilities. As previously stated, the Ringe Pool was closed in the summer of 2017 due to structural problems (cracks). Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-25 Capacity of Facilities and Adequacy of Services Parks and Recreation According to the City’s Budget for Fiscal Years Ending June 30, 2020 and 2021, there is one seasonal employee assigned to parks. Two full time park and greenway maintenance workers were requested however they were not budgeted. 4.8.3 - DETERMINATIONS Determination 4.8-1 – The City actively maintains parks and provides a variety of recreational services to the residents of Yreka. Determination 4.8-2 – Parks and recreational facilities within the City amount to approximately 426 acres of land. This amounts to a ratio of roughly 54 acres per 1,000 persons, which exceeds the standard identified in the City’s General Plan. Determination 4.8-3 - The City utilizes volunteers to supplement the existing workforce in order to maintain its parks and recreational facilities while also creating a feeling of community ownership of open space areas for residents. Determination 4.8-4 – The City has more than adequate parks and recreation facilities to accommodate the planned growth of the City. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-26 Capacity of Facilities and Adequacy of Services Plans for Future Services 4.9 - Plans for Future Services As previously discussed, there do not appear to be any major annexations proposed within the SOI of the City at this time. Because the potential for growth within the City in the coming years is very limited and highly dependent on the economy, it is expected that any development needs will be served by infilling vacant areas within the City’s boundaries. Infill developments within the City would likely have many existing services within their immediate area such as water, sewer, streets, parks, lighting and/or snowplow services. Furthermore, law enforcement and fire protection services would already be servicing the surrounding properties and would be aware that the new development is within their jurisdiction. The City has no immediate plans for the extension of City services. All short-term growth is expected to occur within the City’s existing limits and SOI consistent with applicable master plans and City standards. 4.9.1 - DETERMINATIONS Determination 4.9-1 – All future growth is expected to occur within City limits until the availability of infill parcels is diminished. Determination 4.9-2 – The City has no immediate plans for the extension of City services. Determination 4.9-3 –The City should initiate a Master Plan Update in association with a future General Plan Update in the event that any new expansion areas not currently covered by City Master Plans are identified for future growth. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 4-27 Financial Ability to Provide Services SECTION 5 - FINANCIAL ABILITY TO PROVIDE SERVICES This section analyzes the financial structure and health of the City of Yreka with respect to the provision of services. Included in this analysis is the consideration of rates, service operations, and the like, as well as other factors affecting the City’s financial health and stability, including factors affecting the financing of needed infrastructure improvements and services. Compliance with existing State requirements relative to financial reporting and management is also discussed. An examination of financing includes an evaluation of the fiscal impacts of potential development, and probable mechanisms to finance needed improvements and services. Evaluating these issues is important to ensure new development does not excessively burden existing infrastructure and the ability of the City to fund existing improvements and services. An examination of rate restructuring should identify impacts on rates and fees for services and facilities and recognize opportunities to positively impact rates without decreasing service levels. The focus is on whether there are viable options to increase the City’s efficiency through rate restructuring prior to any SOI adjustment. Annual audit reports and financial statements for the City were reviewed in accordance with the MSR Guidelines. The purpose of this review is to determine fiscal viability, suitability of current funding practices, and potential fiscal impacts resulting from new legislation. 5.1 - City Budget The Budget for Fiscal Years Ending June 30, 2020 and 2021 reflects the City Council’s goals and continues funding sufficient to maintain basic service levels. The City’s projected revenue for all funds is $17.23M in FY 2020-2021 and $28.23M in FY 2021-2022. The projected expenses total $17.71M in FY 2020-2021 and $29.49M in FY 2021-2022 (City of Yreka, 2020). The City’s deficit for FY 2020-2021 should not be construed as though the City is operating inappropriately, when in fact, they are operating very soundly. The multi-year budget assumes revisions will be made to the second year’s budget based on actual operating results of the first year’s budget. The budgets for both years reflect some deficit spending in the General Fund for ongoing expenses (backfill for street funds) and use of one-time money for capital reserves for capital outlay(City of Yreka, 2020). The major factors and obstacles affecting the 2020-2021/2021-2022 Budget, as identified by the City, are: • Planning a two-year budget; the pandemic has made it difficult to make projections regarding revenues and expenses Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-1 Financial Ability to Provide Services The three primary sources of revenue for the City consist of Sales Tax, Property Tax, and Transient Occupancy Tax, which combined, total approximately 70% of the total General Fund revenue for the City. Other revenue sources of the City include Enterprise Funds (Water and Wastewater), Special Revenue Funds (Fire Assessment Tax, Landfill Access Fee, Development Impact Fee), Special Grants, and Restricted/Designated Funds (gifts and donations) (Finance Department, 2016). The Measure C half-cent sales tax passed by voter in 2016 has assisted the City in providing funding for critical services and investing in the future to avoid higher costs. The 2020-2021 FY revenue driving from Measure C is $950,000 and in the 2021-2022 FY is projected to be $950,000 as well (City of Yreka, 2020). The primary sources of expenses for the City consists of public safety (Police and Fire Services), water and wastewater operations and infrastructure, non-departmental expenses (transfers out and debt service), and general governmental services which includes Administration and Public Works. Within those expenses, the salaries and benefits of all employees are included. The City’s budgetary funds are segregated into enterprise and non-enterprise financing functions. Enterprise Funds are established to account for services financed and operated in a manner similar to a private business. In contrast to the General Fund, the Enterprise Funds operate as separate entities. This means that each enterprise program maintains a separate set of books, and funds are not co-mingled or transferred, except in rare cases and then only by specific City Council action. Enterprise Funds are, however, directed towards the General Operating Fund for the recovery of costs relating to administrative services. Enterprise Funds are financed and recovered primarily through usage fees. User charges must be established and maintained at proper levels to assure adequate income to pay for current services and to maintain reserves to allow for adequate cash on hand at all times to pay bills, meet emergencies, and provide for operating capital needs. Over the last several years, these funds have seen sharp increases in capital costs associated with State-mandated infrastructure upgrades and expansions. However, rate study recommendations from 2013 were deferred until cost-saving measures could be analyzed, and Water and Wastewater Funds remain at 2012-2013 service rates per Council action (Finance Department, 2016). According to the current budget, the City plans to conduct another rate study to evaluate current needs. City staff will continue to monitor expenses to avoid “rate shock” from occurring in the future. The City’s ability to obtain financing in addition to typical General Fund and Proprietary Fund revenues is demonstrated by numerous grants the City has been successful in obtaining to implement capital projects. Grants comprise the primary revenue source for infrastructure related improvements, but carry risks associated with cash flow, compliance, and on-going maintenance costs. In recent years, the City has improved its grant monitoring process to help ensure compliance. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-2 Financial Ability to Provide Services The City’s budget has four long-term debts associated with it. The Water Enterprise Fund currently has a debt obligation from a 2010 USDA COP loan for a water system improvement project. The combined interest and principal payment for fiscal year 2020-2021 is $270,606.25 The debt is paid for out of the Water Debt Servicing Fund (Fund 72) and is scheduled to be paid off by the end of 2051. The Wastewater Enterprise Fund currently has a debt obligation from a 2012 USDA COP loan (scheduled to be paid off in 2054), and a State Water Resources loan (scheduled to be paid off in 2023). The combined interest and principal payments for fiscal year 2020-2021 are $83,000 and $123,543, respectively. The debt is paid for out of the Wastewater Debt Servicing Fund (Fund 82). The USDA debt is scheduled to be paid off by the end of 2051.The General Fund Debt Servicing (Fund 12) has a debt obligation from USDA COP 2018 COP loan for $126,240 to include principal and interest for fiscal year 2021. In addition, the City pays the County $175,000 annually for access to the County-owned landfill. This debt is the result of a 2007, 25-year, $2.5 million access agreement, whereby the City sold its interest and environmental liability in the jointly owned transfer station. The City notes throughout their budgetary message and commentary of the Budget for Fiscal Years Ending June 30, 2020 and 2021 that the City continues to pay premiums for the City’s unfunded actuarial liability. The City’s aggregate payment for 2020-2021 FY is $639,488. Not to include the $435,328 for FY 2021. 5.1.1 - RATES AND FEES The City sets rates and fees for various services it provides. On November 16, 2006, the City Council adopted Ordinance 790, establishing and implementing development impact fees. DIFs are collected for public facilities, parks and recreation, storm drainage, street improvements, and water and wastewater services. City staff provides the City Council with an annual accounting of DIFs received from developers and expended for the upgrade and expansion of infrastructure, along with a review of the Capital Improvement Plan. Currently, the City’s impact fees are collected at 50% of the total needed for growth-related impacts due to a sluggish economy (PMC, 2014). The City’s General Plan noted that the City’s slow growth does not support the generation of sufficient DIFs to support capital improvement projects in a timely manner. The issue is further compounded by the fact that much of the City’s infrastructure is in need of improvements, but existing needs are not typically an allowed item in a DIF Program (PMC, 2003). The Budget for Fiscal Years Ending June 30, 2017 and 2018 notes that the City will be seeking to update its 2006 Development Impact Fee Report to reflect changes to the City’s infrastructure and to anticipate new growth- related impacts. The City’s current fees include: • Sewer and Water Connection Fees • Sewer and Water Usage Fees • Landfill Access Fees • Special Fire Service Fees Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-3 Financial Ability to Provide Services • School Impact Fees • Building Permit Fees • Plan Check Fees • Planning and Environmental Review Fees • Public Works Review and Inspection Fees • Business License Fees • Animal License Fees All other services (e.g., natural gas, cable, etc.) are provided by existing providers whose rates are established through mechanisms that are not governed by the City. If and when the City ultimately assumes jurisdiction of additional areas in the SOI, the City would then set the standard rates and fees in these newly incorporated areas for any and all services provided by the City. 5.1.2 - PROPOSITION 218 Proposition 218, the “Right to Vote on Taxes Initiative”, restricts local government’s ability to impose assessment and property related fees and requires elections to approve many local governmental revenue-raising methods. This initiative, approved in 1996, applies to nearly 7,000 cities, counties, special districts, schools, community college districts, redevelopment agencies, and regional organizations. It ensures that all new taxes and most charges on property owners are subject to voter approval and especially to the tools of using property related fees to fund governmental services instead of property related services. Of potential concern is the long-term effect the proposition has created on a local government’s ability to fill the growing divide between infrastructure needs and the provision of governmental services for the new infrastructure. According to City staff Proposition 218 has increased the effort required to ensure compliance and transparency in reporting. However, the City works hard to ensure rate payers that enterprise funds are restricted to use within the given fund. Proposition 218 has not proven to be a factor in limiting the City’s ability to provide services. The City Council approved water and wastewater utility rate increases and a landfill access fee (solid waste disposal) in 2008. These rate increases and fees were subject to the provisions of Proposition 218, including noticing of all affected property owners, and hosting of a public hearing to receive protests, but the City did not receive the required number of protest votes to negate the rate change (simple majority; >50%). 5.1.3 - OPPORTUNITIES FOR RATE/FEE RESTRUCTURING The City’s Fee Schedule is subject to periodic comprehensive revisions and updates. The last updated Fee Schedule went into effect with adoption of Resolution 2712 on October 1, 2008, which revised water and sewer rates in accordance with the 2008 Water and Wastewater Utility Rate Study. These staged rate increases (over a five-year period) brought service fees in line with existing operational and infrastructure needs. In 2013, a subsequent Water and Wastewater Utility Rate Study was completed for the City. The 2013 Rate Study Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-4 Financial Ability to Provide Services recommended fixed rate increases of 2.5% for five years in order to keep pace with the cost of providing water and wastewater services (PACE Engineering, 2013). However, the City Council voted to postpone the rate increases for a year, pending review of utility cost-saving measures, and adopt Resolution 3027 which suspended 25% of the set-up fee for a new water or sewer account (from $100 to $75). Currently, utility rates remain at 2012-2013 levels, but the Budget for Fiscal Years Ending June 30, 2017 and 2018 notes that the City intends to conduct another utility rate study to evaluate the cost of operations based on need and completed improvements. The scope of the 2013 Water and Wastewater Utility Rate Study did not include an analysis of the DIFs needed to fund system improvements related to growth, but noted that DIFs were insufficient to fund growth related infrastructure costs, which are being covered by user rates. As noted previously, the City’s current impact fees are collected at 50% of the total needed for growth-related impacts. However, the Budget for Fiscal Years Ending June 30, 2017 and 2018 notes that the City will be seeking to update its 2006 Development Impact Fee Report to reflect changes to the City’s infrastructure and to anticipate new growth- related impacts. Although the City conducted a Utility Rate Study in 2018, the City should continue to perform a Utility Rate Study every five years to ensure that rates are adequate to cover the costs associated with operations and infrastructure needs. In addition, DIFs should be adjusted for inflation on an annual basis in accordance with the change in the Engineering News Record, San Francisco Construction Cost Index (PACE Engineering, 2013). If the City adheres to the recommendations outlined in the planned studies, there is no evidence to suggest that the City would not be able to provide services to areas within the SOI for fees consistent with citywide fees for such services. Further, since the City’s common practice is to review these fees through its budget process, it can be assumed that future years will follow the same review and update procedure in order to ensure that full cost recovery is obtained for services rendered. 5.1.4 - DETERMINATIONS Determination 5.1-1 – The City conducts an open, transparent budgeting process aimed at balancing the needs of the City with the financial resources available. The City creates a biennial budget that is reviewed and adjusted annually. Determination 5.1-2 – The City attempts to utilize other forms of revenue available besides property taxes and fees, such as grants, in order to supplement its revenue stream, but occasionally has to utilize reserve funds to finance budget deficits. Determination 5.1-4 – The City levies a series of fees and rates to offset the operations, maintenance, and infrastructure costs of the services it provides. Determination 5.1-5 – The services provided by the City are subject to Proposition 218, but that has not proven to be a factor in limiting the City’s ability to increase rates in the past. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-5 Financial Ability to Provide Services Determination 5.1-6 – If the City adheres to the recommendations outlined in proposed Rate and Impact Fee Studies, there is no evidence to suggest that the City would not be able to provide services to areas within the SOI for fees consistent with citywide fees for such services. 5.2 - Status of, and Opportunities for, Cost Avoidance and Shared Facilities Practices and opportunities that may help to reduce or eliminate unnecessary costs are examined in this section, along with cost avoidance measures that are already being utilized. Occurrences of facilities sharing are listed and assessed for efficiency. Potential sharing opportunities that could result in better delivery of services is also discussed. An examination of cost avoidance opportunities should identify practices and opportunities that may help eliminate unnecessary or excessive costs to provide services. Such costs may be derived from a variety of factors including: duplication of service efforts and facilities; inefficient budgeting practices; higher than necessary administration and operating cost ratios; inefficient use of outsourcing opportunities; and inefficient service boundaries. An examination of opportunities for shared facilities should determine if public service costs can be reduced as a result of identification and development of opportunities for sharing facilities and resources. The benefits of sharing costs for facilities are numerous, including: pooling of funds to enjoy economies of scale; reduced service duplications; diversion of administrative functions of some facilities; reduced costs; and providing better overall service. Maximizing opportunities to share facilities allows for a level of service that may not otherwise be possible under normal funding constraints; however, facilities sharing opportunities are not without their challenges. When a municipality enters into a shared agreement, it generally relinquishes a portion of its control of the facility. Additionally, the facility may not be entirely suited to accommodate the municipality’s needs. The City has demonstrated its desire to work with surrounding agencies in providing quality service to residents in a cost-effective manner. The Yreka Police Department maintains a mutual aid agreement with the Siskiyou County Sheriff’s Department. The Yreka Fire Department maintains mutual aid agreements with the California Department of Forestry and Fire Protection (CAL FIRE), the U.S. Forest Service, and the South Yreka Fire Protection District. Although there is much collaboration already between the City and other public safety agencies, the City should consider reviewing their agreements annually in order to determine if further cost savings could be realized beyond the current economies of scale. The Yreka City Hall houses all the City departments except for the Public Works, Police and Fire Departments which are located on N. Main Street, Fairlane Road, and Miner Street. The City utilizes interdepartmental staff resource sharing to the extent practicable, which in turn allows them to jointly utilize facility space as well. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-6 Financial Ability to Provide Services In addition, the Budget for Fiscal Years Ending June 30, 2020 and 2021 notes that to have a better understanding on how the city is to be impacted by the pandemic it will provide frequent updates regarding revenues and freeze any new hiring when vacancies occur (City of Yreka, 2020). Many management positions were restructured, eliminated, or outsourced as professional services; • City staff has focused on implementing self-service citizen applications for services. For example, utility customers now pay bills online and view over three years of history. Citizens can also file police reports online. The City’s website contains information and many forms are available online; • 90% of the water meter reading has been automated to radio read, allowing drive-by electronic impulse reads. This process was formerly hand-read by reading and entering data on every City meter; • Public Works installed water conservation measures saving money and water in City parks and facilities that have resulted in significant savings. This included installing water-efficient sprinkling devices in the parks and implementing a green recycling method of mulching that also saves on landscape watering; • Public Works installed LED lighting in buildings and retrofitted the City’s streetlights with LED bulbs which has resulted in annual savings of over $50K. They have also taken advantage of generous electric company rebate programs; • City buildings have had energy-efficient HVAC systems replaced as funding and needs have allowed; and • The City collaborates with numerous community organizations to do more with the generous volunteers in Yreka. 5.2.1 - DETERMINATIONS Determination 5.2-1 – The City participates in mutual aid agreements with the Siskiyou County Sheriff’s Department, CAL FIRE, the U.S. Forest Service, and the South Yreka Fire Protection District for additional fire protection service. Determination 5.2-2 – The City should annually review the aid agreements in which the City participates in order to establish if further cost savings could be realized beyond the current economies of scale. Determination 5.2-3 – The City utilizes interdepartmental staff resource sharing to the extent practicable, which in turn allows them to jointly utilize facility space as well. 5.3 - Accountability for Community Service Needs, including Governmental Structure and Operational Efficiencies This section addresses the adequacy and appropriateness of the City of Yreka’s existing boundary and Sphere of Influence, assesses the management structure and overall managerial practices of the City, and evaluates the ability of the City to meet its service Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-7 Financial Ability to Provide Services demands under its existing government structure. Also included in this section is an evaluation of compliance by the City with public meeting and records laws. An examination of government structure should consider the advantages and disadvantages of various government structures that could provide public services. In reviewing potential government structure options, consideration may be given to service delivery quality and cost, regulatory or government frameworks, financial feasibility, operational practicality, and public preference. An examination of local accountability should evaluate the accessibility to and levels of public participation with the agency’s management and decision-making processes. The MSR Guidelines note measures such as legislative and bureaucratic accountability, public participation, and easy accessibility to public documents and information as important in ensuring public participation in the decision-making process. 5.3.1 - ORGANIZATIONAL STRUCTURE The City of Yreka operates under the Council/Manager form of government. The Chief Executive Officer is the City Manager who is appointed by the City Council and carries out Council policies. All other department heads in the City serve under supervision of the City Manager. The City consists of six departments, which include Administration, Finance, Police, Fire, Planning/Building, and Public Works. The City Manager’s Office has the responsibility to ensure the needs and concerns of the community and the City organization are properly addressed to ensure Yreka is a good place to live and conduct business. The City Council is responsible for governing as well as establishing the overall priorities and direction for the City’s municipal government. The Council’s responsibilities include the adoption of City ordinances and policies, approval of programs, services, projects, contracts and agreements, adoption of the annual budget, and establishment of short- and long-term goals for the City. The Council also provides direction to the City Manager and City Attorney. Actions of the Council, including opportunities for public involvement and public hearings, are regulated in accordance with applicable statutes and City procedures. The City Council is elected on an at-large basis, meaning there are no specific districts in which candidates run for office. This structure of election allows residents to elect all Council members but may result in areas of the City being unrepresented. Once elected, it is the duty of each Councilmember to represent the interests of all residents of the City. The Mayor and the Mayor Pro Tempore are selected from among the ranks of the City Council and serve two -year terms. The City operates with approximately 50 regular, full-time employees, as well as part- time/seasonal staff, and volunteers. The City also collaborates with numerous community organizations to supplement staff services through the use of volunteers. There are two appointed advisory commissions that assist the City Council in making policy decisions: Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-8 Financial Ability to Provide Services • Historic District and Landmarks Commission; and • Planning Commission. Citizens have an opportunity to participate in the implementation of local policies by serving on a commission. Each commission is comprised of citizens who work to provide services to the community while assisting the Council in achieving goals established by the citizens and elected officials. Commissioners are appointed by the Mayor with the approval of the City Council. Since January 1, 2012, duties of the Historic District and Landmarks Commission have been handled by the Planning Commission (City of Yreka, 2018). A summary of the City’s departments and the various services they provide to the residents of Yreka is provided below. The information was taken directly from the City’s Budget for Fiscal Years Ending June 30, 2020 and 2021: Section 2 Departmental Budgets. Administration The Administration Department consists of the City Manager, the Assistant City Manager/City Clerk. The Administration Department has the responsibility to find and implement the most appropriate ways to provide City services while addressing the needs of the community. They are also responsible for administering personnel rules, labor negotiations, employee benefit programs, maintaining personnel files, and assisting City departments with personnel issues. The City Manager is responsible for the operation and performance of all City departments and the implementation of all City policies and ordinances. The City Manager works with the City Council on policy matters and works with community groups and other governmental entities to accomplish Council goals. The Assistant City Manager/City Clerk maintains official records for the City, maintains custody of the City Seal, prepares Council meeting minutes, serves as filing officer to Fair Political Practices Commission regulations, administers oaths, records official documents, prepares, publishes and posts legal notices, maintains Municipal Code books, administers City claims, provides research and information services to the public, media, and staff, and assists the City Manager in the administration of the City. The Administration Department is assisted by the Human Resources Coordinator. Legal services are provided by the City Attorney with substantial coordination with the City Manager and support by the Confidential Administrative Assistant (shared with the Public Works Director). The City Attorney advises the City Council, City Manager, Planning Commission, and City staff on legal matters relating to the business of the City. The City contracts for general legal services. Fees are billed to projects, departments, and special funds as appropriate. The City contracts with specialized legal services as the needs arise. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-9 Financial Ability to Provide Services Finance Department The Finance Department consists of the Finance Director and Account Clerks. The Finance Department is responsible for tax documentation, financial reporting, budget preparation and implementation, fiscal year reporting, and payroll. Under the direction of the City Manager, the Finance Department is responsible for the City's accounting and financial operations. Duties include: payroll, accounts payable, accounts receivable, utility billing and collections, dog licensing, and business license processing. Finance prepares and processes the Revenue and Expense Budget for the City along with annual financial reports to the State. Finance staff develop and maintain the City’s website and prepares the community newsletter. The Finance Department facilitates office administrative functions, clerical support for administrators, and information technology assistance. Finance is also responsible for handling recreation/community facility reservations, collection of related fees, and the fiscal aspects of grant reporting and compliance. Public Works Department Public Works Administration includes the Public Works Director, Municipal Projects Manager, and GIS Technician. The Public Works Department is responsible for operating and maintaining the water supply and treatment facilities, water distribution system, wastewater collection system, wastewater treatment plant, storm drain system, streets and alleys, traffic signs, streetlights, Municipal Service Center, Pool, and City parks. It is also responsible for maintaining certain City buildings and assists other departments with the maintenance of their buildings. The Department maintains all vehicles, motorized equipment, and heavy equipment. Other departmental functions are engineering, including review and approval of parcel maps, subdivision maps, and plans for public infrastructure improvements; issuing encroachment permits and inspecting encroachment permit work; inspecting the construction of all other public infrastructure improvements; managing the City's transportation improvement program; and managing the design and construction of City’s capital improvement projects. Police Department The Yreka Police Department consists of a Police Chief, Lieutenant, 12 sworn officers, 5 dispatchers and an Animal Control Officer. The Yreka Police Department provides 24/7 law enforcement to the community by patrolling the City to suppress crime and to mitigate traffic problems. Staff responds to and investigates crimes and takes appropriate action. The Department is aggressive in preventing crime by listening to the community, proactive enforcement and training. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-10 Financial Ability to Provide Services Fire Department The Yreka Fire Department consists of a Fire Chief, a volunteer Assistant Fire Chief, a Fire Advisory Board consisting of 14 retiree members and approximately 18-25 trained volunteer firefighters. The primary duty of the Yreka Volunteer Fire Department is to provide fire protection, emergency medical response, and rescue services for the citizens of the City of Yreka. In addition, the department is committed to providing mutual aid assistance for neighboring towns and for the California Department of Forestry and Fire Protection when the need arises. These services are provided by trained volunteers. All members are required to be certified in first aid and CPR on a yearly basis. Some of the members also have First Responder, EMT or EMT II certificates. Planning Department The City Manager oversees the Planning Department. Staff includes of the Assistant City Manager and a Senior Fiscal and Administrative technician. The Planning Department provides the public and the development community with information and guidance concerning development. The Planning Department assists in the development of and manages information regarding General Plan policies, zoning‐regulations, permit procedures, and other information relevant to land use and the orderly development of the community. The Planning Department has the primary responsibility for zoning and land use permits as well as long‐ range planning and local administration of State Environmental Review Laws. These activities include: (a) assisting the public by interpreting zoning regulations and related policies and procedures and provides assistance to applicants on the City's permitting requirements and procedures; (b) providing technical assistance to the City Council, Planning Commission, Building Department, Code Enforcement and other City Departments; (c) supervising special studies, reports and other official documents such as the general plan, zoning ordinance, sign ordinance, CEQA studies, and environmental impact reports; and (d) monitoring and enforcing zoning and business regulations Building Department The Building Department staff consists of a part time contractor as Building Inspector, intermittent use of contract inspection and engineering services and a 0.50 FTE account clerk. The Building Department is responsible for the administration and enforcement of all laws regulating construction. Some of the activities include the examining and approval of plans, inspection of all aspects of construction, Fire Marshall duties (some Fire Marshall duties will need to be contracted separately), zoning administration and enforcement, the issuing of permits pertaining to the building codes, issuing of certificates of occupancy, Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-11 Financial Ability to Provide Services educating the public in regards to the code requirements, and investigating nuisances and complaints of unsafe buildings or conditions. 5.3.2 - PRACTICES AND PERFORMANCE The Mayor presides over Council meetings, which are held on the first and third Thursday of each month at 6:30 p.m. in the City Council Chambers located at 701 Fourth Street, Yreka, CA 96097. . The City is required to follow the open meeting law set forth in the Brown Act (California Government Code Section 54950 et seq.). The intent of this legislation is to ensure that deliberations and actions of a legislative body be conducted openly and that all persons be permitted to attend any meeting except as otherwise provided in the law. Agendas must be posted at least 72 hours in advance of a meeting, and information made available to the Council must also be available to the public. There appear to be ample opportunities for public involvement and input at regularly scheduled meetings. The agenda is posted at City Hall and on the City’s website. The public can also sign up to receive agendas via email. Public notices (pursuant to the Government Code) are published to advertise certain types of hearings, and press releases are issued to inform the public on significant citywide issues and projects. The ratio of managers to workers appears to be appropriate; the City is not top heavy in managers, and the department heads are actively involved in departmental operations and service provision. The City and its departments follow various policies and procedures related to personnel, provision of services, customer relations and relationships with other agencies. The City employs various techniques aimed at improving operational efficiency, such as eliminating duplicate services, eliminating unnecessary equipment inventories, reducing administrative costs when possible, and utilizing volunteer and contract personnel. Recent cost-saving measures include outsourcing management positions, implementing online self-service features (service applications, police reports, and utility payments), and automating water meter reading (Finance Department, 2016). The management structure of the City is relatively simple and is well suited to the type of operations undertaken by the City; the linear management structure ensures an appropriate reporting mechanism and accountability. Furthermore, it allows for clear delineation of duties throughout the City for which the public can easily identify and bring forward their own issues, questions or projects. No alternative structures or reorganizations of the staff would result in more efficient operations, and the existing structure is considered appropriate for the City. The City’s budget process is a key mechanism used to review efficiencies in the management of City services and programs. The annual budget process includes a review of previous year accomplishments, upcoming year goals and programs, and specific funding to carry out those programs. The budget is adopted through a public hearing process by the City Council. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-12 Financial Ability to Provide Services As a municipality, the City is structured to meet the needs and expectations of urban/suburban levels of development. As a multiple service provider with established service systems, the City is able to efficiently provide a comprehensive range of current and planned services. With existing and planned development within the SOI, the extension of infrastructure and services into these areas would be logical and generally more efficient than if provided by other utilities. Provision of services and infrastructure provided by the City into the SOI should not overlap or conflict with other service providers. The inclusion of the SOI areas into the City is not anticipated to have a significant effect on the governmental structure of the City. 5.3.3 - DETERMINATIONS Determination 5.3-1 – The City Council is elected at-large and selects and appoints a Mayor from amongst themselves for a two-year term. This may prevent some areas of the City from being represented on the City Council. Determination 5.3-2 – The City conducts open meetings in compliance with the Brown Act that allow for complaints and comments regarding services and potential conflicts or inefficiencies to be expressed to the City Council by residents. Determination 5.3-3 – The City makes Council agendas and other information that details operations and services provided by the City available to the public at City Hall, on its website, and via email (Council agendas). Determination 5.3-4 – The City utilizes an organizational structure that obtains efficiency through department heads who are actively involved in operations. Determination 5.3-5 – The current City structure is efficient, transparent and meets the expectations of its residents with the resources available. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 5-13 Sphere of Influence Review SECTION 6 - SPHERE OF INFLUENCE REVIEW 6.1 - Sphere of Influence Overview As part of any Sphere of Influence review, LAFCo is required to consider all of the information presented in the Municipal Service Review conducted for that agency. Additionally, LAFCo must also make a written statement of its determinations for that agency regarding the following: 1. The present and planned land uses in the area, including agricultural and open-space lands; 2. The present and probable need for public facilities and services in the area; 3. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; 4. The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency; and 5. The present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. After a written determination has been made with respect to the aforementioned areas of review, LAFCo may adopt a Sphere of Influence (SOI) that is appropriate for the agency’s provision of service. This section of the report fulfills the requirements of Government Code Section 56425 and allows LAFCo to adopt an SOI that is consistent with the written determinations for the City of Yreka. 6.2 - Present and Planned Land Uses The City adopts and maintains a General Plan. The Yreka General Plan was most recently amended in 2002. The Housing Element of the City’s General Plan was amended in May 2014. At that time, the City adopted policies to provide affordable housing within the City to accommodate identified growth projections. The Housing Element concluded that the City has “adequate appropriately zoned sites, with supporting public services and utilities, to accommodate its housing needs over the current planning period”. Because growth in Yreka is currently slowed due to a shifting economic base (from raw materials to services and manufacturing), the City is not expected to grow significantly through the addition of new territory to its boundaries in the coming years. As such, development needs will be served by infilling vacant lots within the City’s boundaries. There are areas designated for industrial development within the General Plan to the east, along Phillipe Lane and Oberlin Road. As noted in the General Plan, the City is transitioning towards a service and manufacturing jobs base away from reliance on timber as the sole industry for the workforce. The City believes it would be appropriate to include the outlying areas on Phillipe Lane within the SOI. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 6-1 Sphere of Influence Review Additionally, the City has noted that industrial uses could be proposed on City-owned landed directly outside the SOI. However, it does not appear that any infrastructure or environmental review has been conducted to determine the viability or impacts of development in these areas that do not currently have a land use designation with the General Plan. Therefore, it is recommended that the City during its next comprehensive General Plan Update study areas for potential growth, such as industrial uses, and include them with the General Plan Land Use map and environmental review. At that time, once those lands have been redesignated, it would be more appropriate to include any key lands within the SOI. 6.3 - Present and Probable Need for Public Facilities and Services The City provides a wide range of services to residents within its incorporated limits. The City also coordinates with other fire and police agencies that overlap or are directly adjacent to the City limits or SOI through mutual aid agreements to best provide services in a comprehensive manner. The City’s water service boundary is set by the SWRCB. The only probable need for public facilities would be for existing communities within the SOI that are likely being serviced by private facilities such as wells and septic systems. The City would be able to possibly step in as successor agency in the future if needed by surrounding residents. There are no present or probable needs for public facilities and services identified in this MSR that would warrant amendment of the current SOI. 6.3.1 - DISADVANTAGED UNINCORPORATED COMMUNITIES The Yreka Fire Department and the South Yreka Fire District work together under a mutual aid agreement to provide fire services throughout the SOI. However, the City only provides water and wastewater services within the City limits. Therefore, there are DUCs already within the SOI that most likely maintain private water and wastewater facilities in addition to receiving mutual aid from the City and adjacent fire protection agencies. Due to the fact that municipal water and wastewater has not been extended to many of these areas, they still qualify as DUCs under CKH but are already within the SOI of the City. 6.4 - Present Capacity of Public Facilities and Adequacy of Public Services The City currently provides a level of service which is satisfactory to meet the needs of its residents. The City actively reviews its service levels and sets goals and achievements that allow for easy review on an annual basis to determine if additional resources must be allocated. The CIP also aids in providing enhancements to public facilities or infrastructure for residents. The annual establishment of the CIP gives the City the ability to allocate or divert funds from areas of lesser need to areas of critical need. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 6-2 Sphere of Influence Review The City has planned accordingly through the CIP, annual budget, and adoption of the General Plan to meet future growth consistent with projections. There are no issues identified in this MSR relative to the present capacity of public facilities and/or adequacy of public services that would warrant amendment of the current SOI. 6.5 - Existence of Any Social or Economic Communities of Interest As stated in Section 3, there are currently communities of social or economic interest within or adjacent to the existing SOI. However, those areas are currently served with water, wastewater and structural fire protection by the City, other agencies, or by individual septic systems and wells. Therefore, the City has no immediate responsibility to extend services into these areas. Furthermore, many of these communities are contiguous with the City, but have been allowed by the County to fully develop without being required to annex to the City, creating inconsistencies with local policies. However, by keeping these communities within the SOI, it would allow the City to be a viable alternative, under the provisions of Government Code §56133 and subject to the policies of Siskiyou LAFCo, in the event that future annexation is warranted. There are no issues identified in this MSR relative to any social or economic communities of interest that would warrant amendment of the current SOI. 6.6 - Yreka Sphere of Influence Recommendations As shown in the MSR and throughout the determinations of this document, the City of Yreka is currently providing services at an adequate level to its residents. The City is accountable to its customers through the City Council, which are elected at-large. Like many small rural cities, the City is struggling to secure funding for service expansions and State-mandated infrastructure upgrades. The City is subject to its own unique characteristics, such as economic constraints brought on by the decline of the timber industry and overall location, in its attempts to maintain a secure stream of funding through taxes and fees. However, the City methodically crafts budgets that aim to identify new revenue sources and steps to control increasing costs. It is anticipated that the City will continue to experience negative or slow growth, comparable to that of the County as a whole, for the foreseeable future. Despite General Plan projections estimating between 8,400 to 10,250 residents by 2022, the population of the City was just 7,777 as of January 2017, only 12 more people than in 2010. Furthermore, the City has expressed no interest or intent to request amendment of the current SOI. As a result, unless there is an amendment to the City’s General Plan or a significant change in growth patterns, the SOI should be considered acceptable to meet present and future growth of the City. Recommendation 6-1 – It is recommended that the City of Yreka’s Sphere of Influence remain unchanged. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 6-3 Sphere of Influence Review Recommendation 6-2 - Until the City completes an environmental review in accordance with the California Environmental Quality Act (CEQA) and comprehensive amendment to the General Plan to identify impacts for potential areas of new growth, the City’s existing SOI is acceptable to accommodate present and future growth needs for residents. Recommendation 6-3 - Until the City completes an environmental review in accordance with CEQA and comprehensive amendment to the General Plan to identify impacts for potential areas of new growth, the capacity of public facilities is currently being reviewed annually by the City to accommodate the present and future needs of residents in a responsible manner. Recommendation 6-4 – The supplemental service providers within the SOI, such as, but not limited to, Siskiyou County, should be consulted early on during any SOI amendment process in order to ensure that services not provided by the City would still be available to be delivered efficiently to potential future residents. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 6-4 References SECTION 7 - REFERENCES City of Yreka. (2018). City of Yreka. Retrieved from City of Yreka, California: http://ci.yreka.ca.us City of Yreka. (2020). Appropriations Limit for the City of Yreka for Fiscal Year 2020-2021 . Yreka : Yreka City Council . Federal Bureau of Investigation. (2016). Table 24 - Full Time Law Enforcement Officers. Washington, D.C.: Department of Justice. Retrieved from https://ucr.fbi.gov/crime- in-the-u.s/2016/crime-in-the-u.s.-2016/tables/table-24 Finance Department. (2016). City of Yreka Budget for Fiscal Years Ending June 30, 2017 and 2018. Yreka. PACE Engineering. (2006). City of Yreka 2005 Master Water Plan. PACE Engineering. (2007). City of Yreka Wastewater Treatment and Effluent Disposal Expansion Plan. Yreka. PACE Engineering. (2008). City of Yreka 2008 Water and Wastewater Utility Rate Study. PACE Engineering. (2013). City of Yreka Draft Water and Wastewater Utility Rate Study. PACE Engineering. (2016). City of Yreka 2015 Urban Water Management Plan. Yreka. PMC. (2003). City of Yreka General Plan 2002-2022. Yreka. PMC. (2010). Municipal Services Review Report for the City of Yreka. Siskiyou County LAFCO. PMC. (2010). Municipal Services Review Report for the City of Yreka. Siskiyou County LAFCO. PMC. (2014). City of Yreka 2014-2019 Housing Element. General Plan Element. Siskiyou Design Group Inc. (2012). Yreka Police Department Needs Assessment Report. Yreka. Smith, D. (2018, January 23). Crew Works Toward Goal of Opening Ringe Pool for 2018 Seasom. The Siskiyou Daily News. State of California, D. o. (May 2017). E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change - January 1, 2016 and 2017. Sacramento, California. State of California, D. o. (May 2017). E-4 Population Estimates for Cities, Counties and the State, 2011-2017, with 2010 Census Benchmark. Sacramento, California. Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 7-1 References U.S. Census Bureau. (2016). Table DP03: Selected Economic Characteristics, 2012-2016 American Community Survey 5-Year Estimates. Willdan. (2005). City of Yreka Master Plan of Drainage. Yreka. YMCA. (2018, February). Siskiyou Family YMCA. Retrieved from YMCA: http://www.siskiyouymca.org/home/ Yreka Municipal Service Review April 2021 Siskiyou LAFCo Page 7-2