Atwater City Council
July 25, 2022

PH: 209.723.3153
FAX: 209.723.0322
www.mcagov.org
369 W, 18th Street
Merced, Ca. 93540
P a r t n e r i n g f o r R e g i o n a l S o l u t i o n s Claim to the Merced County Association of Governments
for Regional Surface Transportation Program (RSTP) Funds in Exchange for State Highway Account Funds FY 2021/2022
Project Cost of
Project
Air
Quality
Exempt

1. Ace Train Platform $374,582.00
 

2. $  

3. $  

4. $  
FY 21/22 Claim Amount: $374,582.00
Claimant: City of Atwater
Claim Guidelines:

Projects outlined in the table below to be funded with this claim are only those projects that are defined under Sections 133(b) and 133(c) of Title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code.

Claim Instructions:

1. List (print or type) each INDIVIDUAL project to be funded with this claim.

2. List the amount of funds to be used for each project.

3. If the project is not a capacity expanding project and is exempt from the air quality conformance analysis check the “Exempt” box. ()

4. If the project is a capacity expanding project and the “build” alternative of the air quality conformance analysis has been completed for the project as required check the “Air Quality” box. ()

It is understood by this claimant (City of Atwater) that payment of this claim is subject to approval by the MCAG Governing Board and must be in accordance with the MCAG and Caltrans Agreement. Said monies (and the interest earned on such monies subsequent to allocation) will be used only for those purposes for which the claim is approved.

The undersigned claimant, by accepting these funds agrees to establish a special account for the purpose of depositing funds received from MCAG pursuant to this agreement:
a. For cities, within their Special Gas Tax Street Improvement Fund; or b. For the county, within their County Road Fund
The undersigned claimant, by accepting these funds, agrees to grant the State of California auditors access to their books and records for the purpose of verifying that funds paid hereunder are properly accounted for and proceeds are expended in accordance with the terms of this agreement. All documents will be available for inspection by authorized Caltrans agents at any time during the project development and for a four-year period from the date of completion of the project, or one year after the audit is completed or waived by Caltrans, whichever is later.

If the undersigned claimant fails to use funds received hereunder in accordance with the terms of the agreement, the claimant agrees to return the exchange funds to MCAG for credit to the special account described above.

Further, the Chief Financial Officer of the claimant certifies that the financial information contained herein, is reasonable and accurate to the best of his/her knowledge.

Authorized Representative:

Signature
Print Name
Title
Date
Signature of Chief Financial Officer
Print Name

CITY COUNCIL

AGENDA REPORT

MEETING DATE: July 25, 2022
TO: Mayor and City Council
FROM: Justin Vinson
PREPARED BY: Justin Vinson
SUBJECT: Approving plans and specifications and authorizing advertising and calling for bids for Well 20-A (Public Works Director Vinson)

RECOMMENDED COUNCIL ACTION
Approval of the plans and specifications and authorizes advertising and calling for bids for Well 20-A, City Project No 20-2.; Bid Call No. 715-22.

I. BACKGROUND/ANALYSIS:

The city's water supply is 100 percent made up of groundwater wells. In April 2011, the City of Atwater had 10 permitted groundwater water production wells to service the residents of the City of Atwater and the Federal Bureau of Prisons. In May 2011, the City stopped using Well 20 and in November 2013, the City stopped using Well 9. This left the City with only 8 permitted wells to serve the residents of Atwater and the Federal Bureau of Prisons. The City has not added any new permitted water production wells to its inventory since the removal of these wells from its water system.

Well 20 was originally drilled in 1991 and was located on Green Sands Rd, approximately 100 feet south of Fairway Dr. At the time of drilling, not much was known about the water quality deeper in the aquifer. With that being said, Meyers Reverse Drilling, Inc. bored 992 feet and set the well at 650 feet, thinking that drilling deeper would lead to less maintenance cost down the road, removing the need to lower the pump and drill deeper if water tables were lowered. As we know now, the water quality at these depths has high concentrations of iron and manganese. Iron and manganese in high concentrations turn the water a brownish, red color that clogs water pipes and does not look physically appealing. As the well aged, the iron and manganese levels rose, and by 2005, water staff would have to flush the water mains surrounding a 1/2 mile radius around the well monthly in order to remove the iron and manganese from the water distribution system so that the residents would be able to drink clear water. Sometimes the frequency of flushing the water mains would occur weekly, dependent on how much water was pumped from the well. After consultation among City staff as well as the Regional Water Board, the well was permanently shut off in May 2011. The City completed the destruction of the well and concrete filling of

CITY COUNCIL
Paul Creighton, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

the casing in September 2017.

Due to the need for another well in the area of Well 20, it was decided in 2015 that the City would drill another well on the same parcel of land that contained the former Well 20, 50 feet away from the original well location. This time the well would only be drilled to 410 feet so that the poor water quality would not be reached. The City finished drilling the well in 2016. During this time, the City of Atwater was in a lawsuit in regards to TCP contamination in city wells. City staff installed a temporary pump that pumped water to waste, to sample water from Well 20-A to determine if there were detected amounts of TCP in the water. TCP levels were detected at start-up, so the data from the sampling was included in the lawsuit and Well 20-A was included in the TCP litigation. All design was put on hold until it was determined if TCP treatment and funds would be available to Well 20-A. After the city received a favorable ruling in its TCP lawsuit, all wells that had an MCL violation were prioritized to receive treatment first, so that the city ensured it was not in violation and was delivering clean and safe drinking water to its residents.

Now that the TCP Project is nearing completion, staff can start focusing their efforts on the completion of Well 20-A. Provost and Pritchard, who designed all the TCP sites in the city, were tasked with designing Well 20-A. The goal in the design and equipment selection was to match the design and equipment that are at the other TCP sites. The well will be equipped with a 200 horsepower (hp) motor, exactly the same motor that was previously at Well 20, 6 GAC vessels for the treatment of TCP, a backwash tank, and a liquid chlorine (sodium hypochlorite) injection pump. The Gac vessels, backwash tank, and chlorine injection pump will all be able to fit inside of the current well site and no other property acquisition will be needed.

Once the City has received the bids from the bid call, staff will bring the bid summary and a recommendation to award a contract to the lowest and most responsible bid. The Engineers Estimate estimate for the construction phase of this project is $2,500,000.00.

Due to the delay in materials and equipment, once awarded, the estimated time of completion of this project is between 12-18 months.

II. FISCAL IMPACTS:

Adequate funds are available in the Water Enterprise Fund and TCP Fund balance.

After review of bids, when staff makes a recommendation for awarding the construction contract, staff will verify that there are adequate funds in the budget for the project, and if not, will request a budget amendment to add the necessary funds.

This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney’s Office.

IV. EXISTING POLICY:

Agenda Report - Page 3

V. ALTERNATIVES:

VI. INTERDEPARTMENTAL COORDINATION:

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council Action.

VIII. ENVIRONMENTAL REVIEW:

This project is Categorically Exempt (CE) pursuant to the California Environmental Quality Act (CEQA) guidelines, Section 15301, “Existing Facilities” Class1(c):

Operation, repair, maintenance, or minor alteration to existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities.

IX. STEPS FOLLOWING APPROVAL:

Should the City Council approve the plans and specifications and authorize the advertising of a Call for Bids, then the Call for Bids will be advertised in a local newspaper and posted on the regional builders' exchanges, and a bid call date will be set.

Submitted by:
/s/ Justin Vinson, Public Works Director
Approved by:

Lori Waterman, City Manager
Attachments:

1. Improvement Plans

CITY COUNCIL

AGENDA REPORT

MEETING DATE: July 25, 2022
TO: Mayor and City Council
FROM: Justin Vinson
PREPARED BY: Justin Vinson
SUBJECT: Accepting CMU Wall Installation at Industry Sewer Lift Station Project as complete (Community Development Director
Thompson and Public Works Director Vinson)

RECOMMENDED COUNCIL ACTION
Accepts work done under the contract for CMU Wall Installation at Industry Sewer Lift Station, City Project No. 21-17 as complete; and authorizes and directs the City Manager to sign a Notice of Completion and have it recorded on behalf of the City; and authorizes a final payment in the amount of $30,029.50.

I. BACKGROUND/ANALYSIS:

At their regularly scheduled meeting of January 10, 2022, the City Council approved Budget Amendment No. 20 amending the Fiscal Year 2021-22 Budget to allocate funding for CMU Wall Installation at Industry Sewer Lift Station in the amount of $479,759.50. The project consisted of installing approximately 610 feet of an 8 foot CMU perimeter wall with anti climb iron and installing anti-graffiti coating on the exterior of the wall and sealers on the interior of the wall. The City Council awarded a contract to W.M Lyles Co. for an amount to exceed $436,165 and gave the City Manager authorization to sign and affirm construction change orders up to an aggregation of $43,614.50 (10%). Change order #1 was taken to the City Council and approved on February 28, 2022, in the amount of $164,445.00 for a total of $600,590.00. Change Order No. 1 was to add an additional 230 linear feet 8 ft CMU with the same specifications listed in the original 610 feet. The work was satisfactorily completed in accordance with the plans and specifications. Staff inspected the work and found it acceptable.

The Notice of Completion has been prepared (EXHIBIT “A”) for this project. A final payment in the amount of $30,029.50 (5% retention) will be released upon recording of the Notice of Completion.

II. FISCAL IMPACTS:

Sufficient funding to pay the retention amount of $30,029.50 is currently contained in the following Project Retention account for the Sewer Enterprise Fund: Account No.

CITY COUNCIL
Paul Creighton, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

6010-0000-4101.

This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney’s Office.

IV. EXISTING POLICY:

This item is consistent with goal number two (2) of the City of Atwater's 2020-2025 Strategic Plan: to improve public safety.

V. ALTERNATIVES:

VI. INTERDEPARTMENTAL COORDINATION:

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council action.

VIII. ENVIRONMENTAL REVIEW:

This project is Categorically Exempt (CE) pursuant to the California Environmental Act (CEQA) guidelines, section 15301, “Environmental Facilities” Class 1(c): Operation, repair, maintenance, or minor alteration to existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities.

IX. STEPS FOLLOWING APPROVAL:

Upon City Council approval, the City Manager will execute the Notice of Completion and the City Clerk’s office will record the Notice; the final payment to W.M Lyles Co. will be processed.

Submitted by:

Greg Thompson, Community Development Director
Submitted by:
/s/ Justin Vinson, Public Works Director
Approved by:

Agenda Report - Page 3

Lori Waterman, City Manager
Attachments:

1. Notice of Completion

Recorded at the request of:

CITY CLERK
Return to

CITY OF ATWATER
750 BELLEVUE ROAD
ATWATER, CA 95301

NOTICE OF COMPLETION
(INDIVIDUAL OR CORPORATION)
Notice is Hereby Given That:

1. The work of improvement as a whole was completed upon the hereinafter described real property on: June 24, 2022.

2. The name and address of the owner giving and filing this notice:

Name Street and No. City State
CITY OF ATWATER 750 BELLEVUE ROAD ATWATER

CALIFORNIA
The interest of said owner was acquired subsequent to the commencement of the work of improvement from:

Name Street and No. City State
N/A
The names and addresses of all other co-owners, if any, who own an estate or interest in said real property, whether as joint tenants or tenants in common, or otherwise, are:

Name Street and No. City State
N/A

3. That the nature of the interest or estate of the owner in and to said real property is in fee: Yes

4. That the name of the original contractor for the work of improvement referred to above is: W.M Lyles

5. That the street address of said property is: Industry Way, Atwater, CA.

6. That the real property herein referred to is situated in the City of Atwater, County of Merced, State of California, and particularly described as follows:

CMU Wall Installation at Industry Lift Station
City Project 21-17
Verification for CORPORATE owner: _______________________________________

LORI WATERMAN, CITY MANAGER

STATE OF CALIFORNIA
} ss
County of Merced
On before me, Lucy Armstrong, Notary Public, personally appeared Lori Waterman, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

___________________________________

LUCY ARMSTRONG, NOTARY PUBLIC

CITY COUNCIL

AGENDA REPORT

MEETING DATE: July 25, 2022
TO: Mayor and City Council
FROM: Justin Vinson
PREPARED BY: Justin Vinson
SUBJECT: Approving contract change order No. 2 to the General Construction Contract with Techno Coatings, Inc. for the Water Tower Renovation/Recoating Project and accepting
Water Tower Renovation/Recoating Project as complete
(Public Works Director Vinson)

RECOMMENDED COUNCIL ACTION
Motion to approve Contract Change Order No. 2 to the General Construction Contract with Techno Coatings, Inc. for the Water Tower Renovation/Recoating Project, City Project No. 20-15, in the amount of $68,626.00; and to authorize and direct the City Manger to sign the change order; and accepts work done under the contract for Water Tower Renovation/Recoating Project, City Project No. 20-15 as complete; and authorizes and directs the City Manager to sign a Notice of Completion and have it recorded on behalf of the City; and authorizes a final payment in the amount of $51,065.75.

I. BACKGROUND/ANALYSIS:

At their regularly scheduled meeting of March 22, 2021, the City Council awarded a General Construction Contract to Techno Coatings, Inc. of Anaheim, California in the amount of $978,000 for the Water Tower Renovation/Recoating Project, City Project 20-15. Work consists of sand blasting, pressure washing, priming, repainting, both “Atwater” logos to be repainted as currently is, and the replacement of a new safety cable to the two access ladders.

On December 20, 2021, the City Council approved Change Order No. 1 to the General Construction Contract to Techno Coatings, Inc. in the amount of $43,315.00 for the additional cost of the new city logos.

Techno Coatings, Inc. is requesting Change Order No. 2 in order to recoup costs for mobilization to repair shrink wrap, the additional time for scaffolding, and the cost of labor due to high winds during the project. At the time of the bid, the contractor believed the work would be done before the wind season arrived. Unfortunately, due to the contractor being delayed months due to the delays from the cell phone companies

CITY COUNCIL
Paul Creighton, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

taking down their antennas and equipment on the water tower. This pushed the work into the windy season and the shrink wrap ripped three times during the project during high winds and had to be repaired to contain the sand blasting.

The work was satisfactorily completed in accordance with the plans and specifications.

The total amount of the contract is $1,089,941.00. Staff inspected the work and finds it acceptable.

The Notice of Completion has been prepared (EXHIBIT “A”) for this project. A final payment in the amount of $51,065.75 (retention) will be released upon recordation of the Notice of Completion.

II. FISCAL IMPACTS:

Sufficient funding for the change order and the closure of the project is available in the Fiscal Year 2022-23 Budget; Water Enterprise Fund, Capital Improvement Projects, Accounts No. 6001-1080-T003 and in the following Project Retention account: Account No. 6001-0000-4101.

This item has been reviewed and approved by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney's Office.

IV. EXISTING POLICY:

V. ALTERNATIVES:

VI. INTERDEPARTMENTAL COORDINATION:

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council Action.

VIII. ENVIRONMENTAL REVIEW:

This project is Categorically Exempt (CE) pursuant to the California Environmental Quality Act (CEQA) guidelines, Section 15301, “Existing Facilities” Class1(c):

Operation, repair, maintenance, or minor alteration to existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities.

IX. STEPS FOLLOWING APPROVAL:

Agenda Report - Page 3

Upon approval, the City Manager will authorize Change Order No. 2 in the total amount of $68,626.00 and the City Manager will execute the Notice of Completion and the City Clerk's office will record the Notice.; the final payment to Techno Coatings, Inc. will be processed.

Submitted by:
/s/ Justin Vinson, Public Works Director
Approved by:

Lori Waterman, City Manager
Attachments:

1. Change Order No. 2

2. Notice of Completion

PROJECT SHEET 1 OF 1
PROJECT NO.

TO:

ADDITIONAL WORK PERFORMED:

Cost impact due to weather conditions:

Unit of
Item No. Description Measure Quantity Rate
1 LS 1.00 $36,120.00
2 LS 1.00 $23,506.00
3 LS 1.00 $9,000.00
Original Contract $978,000.00
Contract Change Order No. 1 $43,315.00
Contract Change Order No. 2 $68,626.00
Estimated Revised Contract Amount $1,089,941.00
additional work days
Submitted by: Date:

Approval Recommended Date:

Approved: City Manager Date:

Signature: Contractor:

Date: Don Watson, Vice President
Name and Title
$68,626.00
Justin Vinson, Public Works Director
Lost of labor cost $9,000.00
By reason of this order the time of
completion will be adjusted as follows:

Description of work to be done, estimate of quantities, and prices to be paid. Segregate between additional work at contract price, agreed price and force account. Unless otherwise stated, rates for rental of equipment cover only such time as equipment is actually used and no allowance will be made for idle time. Change requested by: Justin Vinson, Public Works Superintendent If the Contractor does not sign acceptance of this order, his attention is directed to the requirements of the specifications as to proceeding with the ordered work and filing a written protest within the time therein specified.

Justin Vinson, Public Works Director
Lori Waterman, City Manager
We, the undersigned contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefore the prices shown above.

CONTRACT CHANGE ORDER NO. ___2___
20-15 BID CALL NO. 704-20
Techno Coating, Inc.

You are hereby directed to make the herein described changes from the plans and specifications or do the following described work not included in the plans and specifications on this contract.

Additional scaffold rental $23,506.00
Water Tower Renovation/Recoating Project
Amount
Mobilizations to repair shrink-wrap $36,120.00
NOTE: This change order is not effective until approved by the City Manager

Recorded at the request of:

CITY CLERK
Return to

CITY OF ATWATER
750 BELLEVUE ROAD
ATWATER, CA 95301

NOTICE OF COMPLETION
(INDIVIDUAL OR CORPORATION)
Notice is Hereby Given That:

1. The work of improvement as a whole was completed upon the hereinafter described real property on: June 30, 2022.

2. The name and address of the owner giving and filing this notice:

Name Street and No. City State
CITY OF ATWATER 750 BELLEVUE ROAD ATWATER

CALIFORNIA
The interest of said owner was acquired subsequent to the commencement of the work of improvement from:

Name Street and No. City State
N/A
The names and addresses of all other co-owners, if any, who own an estate or interest in said real property, whether as joint tenants or tenants in common, or otherwise, are:

Name Street and No. City State
N/A

3. That the nature of the interest or estate of the owner in and to said real property is in fee: Yes

4. That the name of the original contractor for the work of improvement referred to above is: Techno Coatings, Inc.

5. That the street address of said property is: 760 Cedar Ave, Atwater, CA.

6. That the real property herein referred to is situated in the City of Atwater, County of Merced, State of California, and particularly described as follows:

Water Tower Renovation/Recoating Project
City Project 20-15
Verification for CORPORATE owner: _______________________________________

LORI WATERMAN, CITY MANAGER

STATE OF CALIFORNIA
} ss
County of Merced
On before me, Lucy Armstrong, Notary Public, personally appeared Lori Waterman, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

___________________________________

LUCY ARMSTRONG, NOTARY PUBLIC

CITY COUNCIL

AGENDA REPORT

MEETING DATE: July 25, 2022
TO: Mayor and City Council
FROM: Greg Thompson, Community Development Director
PREPARED BY: Christina Thurman, Executive Assistant
SUBJECT: Initiates proceedings for the annual assessments levy with respect to the various maintenance districts (Community Development Director Thompson)

RECOMMENDED COUNCIL ACTION
Adopt Resolution No. 3338-22, initiating proceedings for the Annual Assessments Levy with respect to the various Assessment Maintenance Districts for Fiscal Year 2022/23 pursuant to the provisions of Part 2 of Division 15 of the Streets and Highways Code of the State of California.

I. BACKGROUND/ANALYSIS:

BACKGROUND:

The City of Atwater currently operates 54 maintenance districts within its jurisdiction.

These districts provide for the ongoing care, operations and maintenance of storm drainage facilities, street lighting and landscaping improvements through assessments paid primarily by the property owners, who are direct beneficiaries of the specific services provided.

ANALYSIS:

Every year, prior to setting up and collecting the annual levy for the various assessments, the City is required by law to: 1.) Initiate the process and order the Engineer to prepare and file the Engineer’s Reports with the City Clerk’s office; 2.) Preliminarily approve the Engineer’s Reports and declare the City’s intention to levy annual assessments; 3.) Hold a public hearing and approve the Engineer’s Reports as submitted or amended; and 4.) File the assessment roles based on the approved assessment rates with the County Auditor-Controller. This is the first step in that process.

The adoption of this resolution declares the City’s initiation of the proceedings to levy and collect the special assessments for street lighting, storm drainage, landscaping and street maintenance for the various special assessment maintenance districts within the City for Fiscal Year 2022/23. The adoption of this resolution also directs the Assessment Engineer to prepare and file with the City Clerk a report with respect to the

CITY COUNCIL
Paul Creighton, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

Fiscal Year 2022/23 levy of assessments in connection with the Districts.

II. FISCAL IMPACTS:

Collection of Special Assessments will result in revenue to offset maintenance and administrative costs for services provided in these districts. This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by Legal.

IV. EXISTING POLICY:

This item is consistent with goal numbers one (1) and two (2) of the City's Strategic Plan: to ensure the City's continued financial stability and to improve public safety, respectively.

V. ALTERNATIVES:

Should the City Council elect not to take action, services in these districts must be eliminated or funded from the General Fund. Residents in the districts generally pay for the services through the assessment (tax roll). Without this revenue, the General Fund would be required to fund the work, if the work were to be completed.

VI. INTERDEPARTMENTAL COORDINATION:

This item has been routed internally for all departmental heads to review.

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council action.

VIII. ENVIRONMENTAL REVIEW:

This item, and the maintenance contemplated by this action are all located within existing facilities of approved projects throughout the City. As they represent existing facilities, they are considered an exempt activity as defined under section 15301 “existing facilities” of the California Environmental Quality Act (“CEQA”).

IX. STEPS FOLLOWING APPROVAL:

Upon City Council adoption of Resolution No.3338-22, staff will begin with step 1 in the process by directing staff to prepare and file the preliminary Engineer’s Reports with the City Clerk’s Office.

Submitted by:

Agenda Report - Page 3

Greg Thompson, Public Works/Community Development Director Submitted & Approved by:

Lori Waterman, City Manager
Attachments:

1. Reso No 3338-22 - Assessment Maintenance Districts Initiation

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. 3338-22

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ATWATER INITIATING PROCEEDINGS

FOR THE ANNUAL ASSESSMENT LEVY WITH

RESPECT TO THE VARIOUS ASSESSMENT

MAINTENANCE DISTRICTS FOR FISCAL YEAR
2022-23 PURSUANT TO THE PROVISIONS OF
PART 2 OF DIVISION 15 OF THE STREETS AND

HIGHWAYS CODE OF THE STATE OF

CALIFORNIA
WHEREAS, the City of Atwater has established Maintenance Assessment Districts (the “Districts”) pursuant to the Landscaping and Lighting Act of 1972 (California Streets & Highways Code Section 22500 et seq.) (the “Assessment Law”); and WHEREAS, the City Council desires to initiate proceedings to levy and collect assessments against the parcels within the Districts for Fiscal Year 2022-23 to pay for the costs of the maintenance in connection with the assessment districts; and WHEREAS, the individual property owners within each District are responsible for providing funding towards the costs of the continued maintenance, operation, and servicing of the designated areas and improvements within each respective District; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Atwater does hereby resolve, order, and determine as follows:

Section 1: That the above recitals are true and correct.

Section 2: The City Council hereby initiates proceedings to levy and collect assessments against the parcels within the Districts for Fiscal Year 2022-23.

Section 3: The general nature of the improvements maintained and serviced in connection with the Districts are not proposed to change from prior years.

Resolution No. 3338-22 Page 2
Section 4: The purpose of the assessment maintenance districts shall be to finance the maintenance and servicing of improvements throughout the Districts and the incidental expenses of the Districts.

Section 5: The City Council hereby orders the Assessment Engineer to prepare the Engineer’s Reports showing the detailed work, boundaries of the districts and both the maximum and proposed assessments for Fiscal Year 2022-23 and file the Reports with the City Clerk of the City of Atwater.

Section 6: The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

The foregoing resolution is hereby adopted this 25th day of July, 2022.

AYES:

NOES:

ABSENT:

APPROVED:

________________________________

PAUL CREIGHTON, MAYOR
ATTEST:
_________________________________

LUCY ARMSTRONG, CITY CLERK

CITY COUNCIL

AGENDA REPORT

MEETING DATE: July 25, 2022
TO: Mayor and City Council
FROM:

PREPARED BY:

SUBJECT: Resolutions calling, giving notice of, and consolidating a General Municipal Election to be held Tuesday, November 8, 2022 regarding the renewal of a Transactions and Use Tax Measure in the City of Atwater (City Manager Waterman)

RECOMMENDED COUNCIL ACTION
Adopt Resolution No. 3341-22 calling for the placement of a local controlled special tax measure on the ballot for the November 8, 2022 for the submission to the qualified voters of an ordinance to extend a special transactions and use tax (Sales Tax) at the rate of one cent (1¢) to fund Police, Fire and 911 Emergency Response Services; Adopt Resolution No. 3340-22 requesting the Board of Supervisors of the County of Merced to consolidate a General Municipal Election to be held on November 8, 2022 with the statewide General Election to be held on that date pursuant to §10403 of the elections code; and
Adopt Resolution No. 3339-22 providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a city measure to be submitted at the November 8, 2022 General Municipal Election.

I. BACKGROUND/ANALYSIS:

BACKGROUND:

On March 5, 2013, the voters of the City of Atwater (“City”) approved a one-half cent sales tax to supplement funding for public safety services in the City. The tax is codified as Atwater Municipal Code (“AMC”) Chapter 3.45, titled “Atwater Public Safety Transaction and Use Tax” (“Public Safety Tax”).

In 2013, the ballot measure was approved by more than two-thirds of City voters. The Public Safety Tax imposed a one-half sales tax upon all retailers in the City for the sale

CITY COUNCIL
Paul Creighton, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

of all tangible personal property sold at retail in the City. This tax was designed to supplement public safety funding.

The Public Safety Tax restored essential public safety services such as neighborhood police patrols/firefighter staffing, gang/drug suppression and enforcement, improving 911 emergency medical response times, and other vital City safety services.

ANALYSIS:

The Public Safety tax will expire on June 30, 2023. During the regular City Council meeting of July 11, 2022, FM3, the City’s polling consultant, provided a presentation regarding recent polling results in response to the expiring Public Safety Tax n approved measure would renew and replace the current tax.

Based upon the results of the polling, the City Council provided staff with direction to prepare resolutions to place on the November 8, 2022 ballot a measure to renew the Public Safety Tax, at the one-cent rate to not include a sunset/termination until ended by City voters.

As with the current Public Safety Tax, the new tax (if approved) would be paid by the general public. The tax would be collected from the retailers by the California Department of Tax and Fee Administration and remitted to the City. As a special purpose measure, to pass, this measure requires two-thirds affirmative votes of those voting on it, and all funds would be used for essential public safety services, such as the aforementioned needs, as specified in Chapter 3.45.

The proposed measure would require that the citizens’ oversight committee continue to review expenditures of tax revenue and report to the public and the City Council. The proposed measure would also continue independent audits. These audits would be prepared annually, and the City Manager would select and retain the independent auditor who would review and examine the City’s accounting of the tax revenues received and expenditures made.

Monies collected from the tax would continue to be spent on City of Atwater public safety services only. These revenues, unlike property taxes and vehicle license fees, cannot be taken or borrowed by the State of California.

II. FISCAL IMPACTS:

The financial impact of the proposed measure, to the average consumer, would be an additional 50 cents for every $100 spent on taxable goods with a one cent tax.

Revenues from the measure could generate approximately $4,000,000 (one-cent tax) annually for public safety expenditures.

Agenda Report - Page 3

Staff is anticipating the cost associated with an election could be between $15,000 and $20,000. A total of $20,000 is included in the Adopted Budget for Fiscal Year 2022- 2023 and is appropriated in the City Administration/City Clerk Fund, Professional Services Account No. 0001.1010.3030. Staff will return to the City Council with a budget amendment if necessary.

This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney’s Office.

IV. EXISTING POLICY:

This item is consistent with goal numbers one (1) and two (2) of the City's Strategic Plan: to ensure the City's continued financial stability and to improve public safety, respectively.

V. ALTERNATIVES:

Not required for all staff reports but should be included in most reports where the Council should be considering options, or discussion of options already investigated.

If there are Policy options for consideration, the discussion should be specific and detailed.

VI. INTERDEPARTMENTAL COORDINATION:

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council action.

VIII. ENVIRONMENTAL REVIEW:

This item is not a “project” under the California Environmental Quality Act (CEQA) as this activity does not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to Public Resources Code section 21065.

IX. STEPS FOLLOWING APPROVAL:

Upon approval of this item, the City Clerk’s office will transmit the Resolution copy to the Merced County Registrar of Voters on or before August 12, 2022 (last day for measure consolidation). The City Attorney’s Office will prepare the Impartial Analysis to be filed with the resolution.

Agenda Report - Page 4

Submitted & Approved by:

Lori Waterman, City Manager
Attachments:

1. Reso No. 3339-22 - Setting Deadlines and Rules - Special Transactions and use Tax Measure

2. Reso No. 3340-22 - Requesting Consolidation of Election with Merced County - Special Transactions and Use Tax Measure

3. Reso No. 3341-22 - Calling General November 2022 Election on General Transactions and Use Tax Measure

4. Ordinance No. CS 1050

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. 3339-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATWATER, CALIFORNIA, PROVIDING FOR THE FILING OF

PRIMARY AND REBUTTAL ARGUMENTS AND SETTING

RULES FOR THE FILING OF WRITTEN ARGUMENTS

REGARDING A CITY MEASURE TO BE SUBMITTED AT THE
NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION
WHEREAS, a General Municipal Election is to be held in the City of Atwater, California on November 8, 2022, at which there will be submitted to the voters the following measure:

Yes
“City of Atwater Police, Fire, 911 Emergency Response
Renewal Measure.

To prevent drastic cuts to Atwater’s local public safety services, including elimination of the Atwater Police Department; maintain emergency heart attack/stroke response times,
medical services, neighborhood police patrols, police officer training; investigate violent crimes; shall the City of Atwater adopt a measure renewing its existing, voter-approved sales tax at the 1¢ rate, providing $4,000,000 annually, until ended by voters, requiring audits, oversight/all funds only for Atwater?” No

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATWATER, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Primary Arguments. That the City Council authorizes (i) the City Council or any member(s) of the City Council, (ii) any individual voter eligible to vote on the above measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the City measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk.

Resolution No. 3339-22 Page 2
The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be August 22, 2022, at 5:00 p.m. Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.

Section 2. Rebuttal Arguments. Pursuant to Section 9285(b) of the Elections Code of the State of California, the provisions of Elections Code 9285(a) are not adopted and therefore no rebuttal arguments shall be filed.

Section 3. Prior Resolutions. That all previous resolutions providing for the filing of primary and rebuttal arguments related to City measures are repealed.

Section 4. November 8, 2022 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on November 8, 2022, and shall then be repealed.

Section 5. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions.

The foregoing resolution is hereby adopted this 25th day of July, 2022.

AYES:

NOES:

ABSENT:

APPROVED:

________________________________

PAUL CREIGHTON, MAYOR
ATTEST:
_________________________________

LUCY ARMSTRONG, CITY CLERK

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION 3340-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ATWATER, CALIFORNIA, REQUESTING THE

BOARD OF SUPERVISORS OF THE COUNTY OF

MERCED TO CONSOLIDATE A GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 8, 2022 WITH

THE STATEWIDE GENERAL ELECTION TO BE HELD
ON THAT DATE PURSUANT TO §10403 OF THE

ELECTIONS CODE
WHEREAS, on August 25, 2022, the City Council of the City of Atwater adopted Resolution No. 3341-22, calling a General Municipal Election to be held on November 8, 2022; for the purpose of submitting to the voters the question relating to the Special Transactions and Use Tax; and
WHEREAS, it is therefore desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the election department of the County of Merced canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATWATER DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Request for Consolidation. Pursuant to the requirements of §10403 of the Elections Code, the Board of Supervisors of the County of Merced is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of submitting to the voters the following question relating to the Special Transactions and Use Tax.

Resolution No. 3340-22 Page 2
Section 2. Measure Language. A measure is to appear on the ballot as follows:

Yes
“City of Atwater Police, Fire, 911 Emergency Response
Renewal Measure.

To prevent drastic cuts to Atwater’s local public safety services, including elimination of the Atwater Police Department; maintain emergency heart attack/stroke response times,
medical services, neighborhood police patrols, police officer training; investigate violent crimes; shall the City of Atwater adopt a measure renewing its existing, voter-approved sales tax at the 1¢ rate, providing $4,000,000 annually, until ended by voters, requiring audits, oversight/all funds only for Atwater?” No
Section 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the General Municipal Election. The Election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. Pursuant to California Elections Code Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election.

Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.

Section 5. Costs. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the General Municipal Election with the Statewide General Election. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill. The City Manager of the City of Atwater is authorized and directed to pay for the expenses incurred after receiving a statement from the County of Merced.

Section 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of Merced.

Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

The foregoing resolution is hereby adopted this 25th day of July, 2022.

AYES:

NOES:

ABSENT:

Resolution No. 3340-22 Page 3
APPROVED:

________________________________

PAUL CREIGHTON, MAYOR
ATTEST:
_________________________________

LUCY ARMSTRONG, CITY CLERK

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. 3341-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATWATER, CALIFORNIA CALLING FOR THE PLACEMENT

OF A LOCALLY CONTROLLED SPECIAL TAX MEASURE ON
THE BALLOT FOR THE NOVEMBER 8, 2022 GENERAL

MUNICIPAL ELECTION FOR THE SUBMISSION TO THE

QUALIFIED VOTERS OF AN ORDINANCE TO EXTEND A

SPECIAL TRANSACTIONS AND USE TAX (SALES TAX) AT
THE RATE OF ONE CENT (1¢) TO FUND POLICE, FIRE AND
911 EMERGENCY RESPONSE SERVICES
WHEREAS, pursuant to Chapter 3.45 of the Atwater Municipal Code, the City of Atwater (“City”) currently imposes a one-half cent (1/2¢) special Transactions and Use Tax (“Sales Tax”) to fund the specific purposes of police, fire and 911 emergency response equipment and services; and
WHEREAS, the Sales Tax is scheduled to sunset by its terms on June 30, 2023, after which the Sales Tax may no longer be collected; and
WHEREAS, existing voter approved public safety funding expires soon and unless renewed, the City of Atwater will lose $2 million a year that currently funds local police and fire services, resulting in devastating public safety cuts and potentially impacting public safety services; and
WHEREAS, Atwater firefighter staffing levels are below the national staffing standards a daily, making it challenging to respond quickly to medical emergencies – especially if there is more than one at a time. This measure will help the City to provide reliable firefighting and emergency medical response services; and WHEREAS, Atwater police officers and firefighters plan an important role in the community; they prevent crime, address homelessness, volunteer in the community, provide support to our local businesses and save lives. Renewing this voter approved

Resolution No. 3341-22 Page 2
public safety funding ensures our City can continue to retain local police officers and firefighters; and
WHEREAS, this public safety funding renewal will continue to include tough fiscal accountability by requiring annual independent audits, public review of expenditures and ensuring all funds remain in Atwater and cannot be taken by Sacramento. These fiscal safeguards will continue to ensure these funds are used efficiently and effectively as promised to Atwater voters; and
WHEREAS, the City Council of the City of Atwater (“City”) is authorized to levy and extend a Transactions and Use (Sales) Tax for specific purposes pursuant to California Revenue and Taxation Code section 7285.91, subject to approval by a two-thirds vote of the electorate pursuant to Article XIIIC, section 2 of the California Constitution (“Proposition 218”); and
WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and
WHEREAS, the City Council would like to submit to the voters at the November 8, 2022 General Municipal Election a measure extending the term of the Sales Tax by removing its sunset, updating its terms and conditions, at a rate of one cent (1¢) on the sale and/or use of all tangible personal property sold at retail in the City until it is ended by voters, as more specifically set forth in the attached proposed ordinance amending Chapter 3.45 of Title 3 of the City’s Municipal Code; and
WHEREAS, the Sales Tax, if approved, would remain a special tax, the revenue of which will be placed into a special City fund and will only be used to pay for Atwater police, fire and 911 emergency response services, as more specifically identified in the attached Ordinance/Measure; and
WHEREAS, pursuant to Proposition 62 (California Government Code §53724(c) and (d)), a local tax election may be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government are entitled to vote, or held on any other election date permitted by law; and
WHEREAS, the next available election date at which the Sales Tax may be considered by the voters is November 8, 2022; and
WHEREAS, pursuant to California Revenue and Taxation Code §7285.91, a two-thirds (2/3) supermajority vote of the City Council is required to approve and place a special transactions and use (sales) tax measure on the November 8, 2022 ballot; and

Resolution No. 3341-22 Page 3
WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval, collection and use of the special Sales Tax are described and provided for in the ordinance/measure attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof, in accordance with all applicable laws.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATWATER:

SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and are hereby incorporated and made an operative part of this Resolution.

SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code section 9222, Government Code section 53724, Revenue and Taxation Code section 7285.91 and any other applicable requirements of the laws of the State of California relating to the City, the City Council, by a two-thirds (2/3) vote of all members, hereby orders the Measure to be submitted to the voters of the City at the General Municipal Election to be held on Tuesday, November 8, 2022.

SECTION 3. The City Council, pursuant to California Elections Code section 9222, hereby orders that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 8, 2022, in addition to any other matters required by law, there shall be printed substantially the following ballot question:

YES “City of Atwater Police, Fire, 911 Emergency Response Renewal Measure.

To prevent drastic cuts to Atwater’s local public safety services, including elimination of the Atwater Police Department; maintain emergency heart attack/stroke response times, medical services, neighborhood police patrols, police officer training; investigate violent crimes; shall the City of Atwater adopt a measure renewing its existing, voter-approved sales tax at the 1¢ rate, providing $4,000,000 annually, until ended by voters, requiring audits, oversight/all funds only for Atwater?”
NO
SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk not later than August 19, 2022.

Resolution No. 3341-22 Page 4
The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or Measure. If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at (209) 357-6317 and a copy will be mailed at no cost to you.”
SECTION 6. Notice of the election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide, and a statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk.

SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, November 8, 2022, file with the Board of Supervisors and the County Clerk – Registrar of Voters of the County of Merced, State of California, a certified copy of this Resolution.

SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run.

SECTION 10. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).

SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.

SECTION 12. This Resolution shall become effective upon its adoption.

SECTION 13. The City Clerk shall certify to the adoption of this Resolution.

Resolution No. 3341-22 Page 5
The foregoing resolution is hereby adopted this 25th day of July, 2022.

AYES:

NOES:

ABSENT:

APPROVED:

________________________________

PAUL CREIGHTON, MAYOR
ATTEST:
_________________________________

LUCY ARMSTRONG, CITY CLERK

Resolution No. 3341-22 Page 6
Exhibit “A”
Transactions and Use Tax Ordinance
[attached behind this page]

CITY COUNCIL
OF THE

CITY OF ATWATER

ORDINANCE NO. CS 1050

AN ORDINANCE OF THE PEOPLE OF THE CITY OF
ATWATER, CALIFORNIA, AMENDING CHAPTER 3.45
OF TITLE 3 OF THE ATWATER MUNICIPAL CODE TO
RENEW A ONE CENT (1¢) SPECIAL TRANSACTIONS

AND USE TAX (SALES TAX) TO FUND POLICE, FIRE
AND 911 EMERGENCY RESPONSES SERVICES, TO

BE ADMINISTERED BY THE CALIFORNIA

DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, pursuant to Chapter 3.45 of the Atwater Municipal Code, the City of Atwater (“City”) currently imposes a one half cent (1/2¢) special Transactions and Use Tax (“Sales Tax”) to fund the specific purposes of police, fire and 911 emergency response services; and
WHEREAS, the Sales Tax is scheduled to sunset by its terms on June 30, 2023, after which the Sales Tax may no longer be collected; and
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.91 the City of Atwater (“City”) is authorized to levy and extend a Transactions and Use (Sales) Tax for special purposes, subject to approval by a two-thirds vote of the electorate; and WHEREAS, the People of the City desire to renew the Transactions and Use (Sales) Tax for specific purposes by removing its sunset, updating the Ordinance’s terms, at a rate of one cent (1¢) until it is repealed by voters, in order to fund the specific purposes of police, fire and 911 emergency response services; and WHEREAS, if approved by the City Council and Atwater voters, this Ordinance amends Chapter 3.45 of Title 3 of the Atwater Municipal Code as provided herein.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF ATWATER DO HEREBY ORDAIN AS FOLLOWS:

Section 1. Title and Text. This Ordinance shall be known as the “2022 Atwater Police, Fire and 911 Emergency Response Transactions and Use Tax Ordinance” and

Ordinance No. CS 1050 Page 2
hereby amends Chapter 3.45 of Title 3 of the Atwater Municipal Code as set forth in the full text in Attachment “1”, attached hereto and incorporated herein by reference.

Section 2. Approval by the City Council. Pursuant to California Government Code section 53724 and Revenue and Taxation Code section 7285.91, this Ordinance was duly approved for placement on the ballot by a minimum two-thirds (2/3) supermajority of all members of the City Council on _____________, 2022.

Section 3. Approval by the Voters/Amendment. Pursuant to California Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a two-thirds supermajority of the eligible voters of the City of Atwater voting at the General Municipal Election of November 8, 2022. It shall be deemed adopted when the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter. The City Council may amend or repeal this Ordinance and any of its exhibits, but may not increase or extend the rate of the special tax imposed herein without another vote of the People.

Section 4. Operative Date. “Operative Date” for the amended Transactions and Use Tax means the first day of the first calendar quarter commencing more than 110 days after the date this Ordinance is adopted, as set forth in Section 3 above.

Section 5. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

I hereby certify that the Ordinance was ADOPTED by the People of the City of Atwater on the 8th day of November, 2022.

INTRODUCED:

ADOPTED:

AYES:

NOES:

ABSENT:

APPROVED:

________________________________

PAUL CREIGHTON, MAYOR
ATTEST:
_______________________________

LUCY ARMSTRONG, CITY CLERK

Ordinance No. CS 1050 Page 3
Chapter 3.45 – 2022 Atwater Public Safety Transactions and Use Tax Sections:

3.45.010 - Title.

3.45.020 - Purpose.

3.45.030 - Contract With State.

3.45.040 - Transactions Tax Rate.

3.45.050 - Place of Sale.

3.45.060 - Use Tax Rate.

3.45.070 - Adoption of Provisions of State Law.

3.45.080 - Limitations on Adoption of State Law and Collection of Use Taxes.

3.45.090 - Permit Not Required.

3.45.100 - Exemptions and Exclusions.

3.45.110 - Amendments.

3.45.120 - Enjoining Collection Forbidden.

3.45.130 - Use of Tax Proceeds and Expenditure Plan.

3.45.140 - Citizens’ Oversight Committee.

3.45.150 - Fiscal Accountability Provisions.

3.45.160 - Duration of Tax.

Sections:

3.45.010 - Title.

This chapter shall be known as the 2022 Atwater Police, Fire and 911 Emergency Response Transactions and Use Tax Ordinance. The City of Atwater hereinafter shall be called "City." This chapter shall be applicable in the incorporated territory of the City.

3.45.020 - Purpose.

This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part

1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

Ordinance No. CS 1050 Page 4
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record-keeping upon persons subject to taxation under the provisions of this ordinance.

3.45.030 - Contract With State.

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

3.45.040 - Transactions Tax Rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

Such tax shall be in addition to any other transactions taxes imposed by this Code or applicable State law.

3.45.050 - Place of Sale.

For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

Ordinance No. CS 1050 Page 5

3.45.060 - Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent (1%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

3.45.070 - Adoption of Provisions of State Law.

Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

3.45.080 - Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, California Victim Compensation Board, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;

Ordinance No. CS 1050 Page 6
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In reference to Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

3.45.090 - Permit not Required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.

3.45.100 - Exemptions and Exclusions.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:

Ordinance No. CS 1050 Page 7
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this subsection, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the

Ordinance No. CS 1050 Page 8
property for an amount fixed by a lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this subsection, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

3.45.110 - Amendments.

All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

3.45.120 - Enjoining Collection Forbidden.

Ordinance No. CS 1050 Page 9
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3.45.130 - Use of Tax Proceeds and Expenditure Plan.

All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into a special fund or account designated for use by the City only for the public safety services set forth in a Program Guidelines and Public Safety Expenditure Plan for the administration and expenditure of the tax proceeds. Such public safety expenditure plan may be amended from time to time by a majority vote of the City Council, so long as the funds are utilized for public safety, police, and fire protection services.

For the purposes of this part, "public safety services" means:

A. Obtaining, furnishing, operating, and/or maintaining police protection equipment or apparatus, paying the salaries and benefits of police protection personnel, and such other police protection service expenses as are deemed necessary by the City Council for the benefit of the residents of the City; B. Obtaining, furnishing, operating, and/or maintaining fire protection equipment or apparatus, paying the salaries and benefits of fire protection personnel, and such other fire protection service expenses, including capital expenses, as are deemed necessary by the City Council for the benefit of the residents of the City.

No revenues collected pursuant to the tax levied hereby may be spent on department administrators' salaries general fund operating expenses in effect at the time the ordinance codified herein becomes effective, or projects not a part of the public safety measure police and fire expenditure plan. It is the intent of the people that revenues collected hereunder shall supplement, rather than supplant, existing City expenditures for public safety.

3.45.140 - Citizens’ Oversight Committee.

A. Committee Established. There is hereby established in the City a citizen's oversight committee to monitor the expenditures of revenue collected pursuant to this chapter only and report to the people and the City Council.

B. Selection of Members. Members of the citizens' oversight committee shall be appointed by the City Manager. The committee shall consist of five members.

The citizens' oversight committee members shall not be current City employees, officials, contractors or vendors of the City. Past employees, officials or vendors shall be eligible to serve on the committee, provided that there are no conflicts of interest as determined by the City Attorney.

Ordinance No. CS 1050 Page 10
As used herein, the term "official" is not synonymous with the term "public official" as defined in the California Political Reform Act. The term "official" shall not include members or appointees serving on existing boards or commissions of the City of Atwater, including, but not limited to, the Planning and Zoning Commission and the Parks and Recreation Commission. The term "official" shall mean any person who is not an employee, but performs the duties or functions of an employee of the City of Atwater for compensation under an outsourcing arrangement, including, but not limited to, the Fire Chief, the Finance Officer and any other positions which may be outsourced subsequent to the enactment of this Ordinance.

Members of the committee shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms.

The City Manager shall solicit citizens' oversight committee members through an open application process that is promoted through the City's adopted recruiting process.

Any Atwater resident is eligible to apply for committee membership, subject to the appointment categories specified above. All applications will be reviewed by the City Manager, who will have the authority to make all final decisions on committee representation, subject to these guidelines.

C. Purpose and Jurisdiction. The citizens' oversight committee shall review expenditures of revenue collected pursuant to this chapter only to determine whether such funds are expended for the purposes specified in the then-current public safety measure police and fire expenditure plan, and issuing reports on their findings to the City Council and public at least annually. Committee members may also review the annual financial or performance audits performed by an independent auditor. The committee shall confine its oversight specifically to revenues generated under this chapter. Revenue generated through other sources shall be outside the jurisdiction of the public safety measure citizens' oversight committee.

In order to preserve the integrity and independence of the oversight process, committee members will not play a formal role in contracting, project management, or any other aspect of the public safety measure funding.

The committee is not charged with decision-making on spending priorities, schedules, project details, funding source decisions (e.g., leveraged funds, developer fees, etc.), financing plans, or tax rate assumptions. The committee shall serve in an advisory-only role to the City Manager. The committee shall have no jurisdiction other than that delegated to it by the people pursuant to this chapter.

The City Manager or designee shall provide any reasonable administrative or technical assistance required by the committee to fulfill its responsibilities or publicize its findings.

D. Meetings. The citizens' oversight committee shall meet semi-annually (or as otherwise provided for in approved or amended bylaws) with specific meeting

Ordinance No. CS 1050 Page 11
dates to be determined by committee members. Citizens' oversight committee meetings are subject to the Brown Act. Meetings must be agendized and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the committee as necessary. All committee members shall attend a training and orientation session prior to attending their first regular committee meeting.

Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the committee at the discretion of the City Manager.

E. Committee Operations. The citizens' oversight committee will select members to serve as chair and vice chair of the committee. A City staff person will be appointed by the City Manager or designee to serve as secretary. The secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings, and procedures shall require a simple majority vote of those members in attendance. The quorum requirement for any meeting shall be a minimum of four members.

F. Vacancies. Committee members may be removed from the committee only by the City Manager for repeated absence (see Section D of this section), for malfeasance, for failing to meet the qualifications set forth in this section or for inability or unwillingness to fulfill the duties of a member. In the event of removal, resignation, or death, the City Manager shall appoint a person to fill the vacant seat.

G. Miscellaneous. With the exception of those items specifically addressed in these guiding principles, the committee may draft and adopt its own standard procedures and bylaws by majority vote. All citizens' oversight committee procedures and bylaws remain subject to review and approval by the City Council. Citizens' oversight committee reports and audits are subject to review and approval of the City Council.

3.45.150 - Fiscal Accountability Provisions.

The amount generated by this special purpose revenue source and how it was used shall be included in the annual audit of the City's financial operations by an independent certified public accountant.

3.45.160 - Duration of Tax.

The authority to levy the tax imposed by this chapter shall continue until this ordinance is repealed.”

CITY COUNCIL

AGENDA REPORT

MEETING DATE: July 25, 2022
TO: Mayor and City Council
FROM:

PREPARED BY:

SUBJECT: Appointment of three (3) technical members to the General Plan Technical Advisory Committee to assist with the update to the City of Atwater General Plan

RECOMMENDED COUNCIL ACTION
Motion to appoint three (3) members to the General Plan Technical Advisory Committee to assist with the update to the City of Atwater General Plan.

I. BACKGROUND/ANALYSIS:

Required section for all staff reports.

The Background section provides a brief history of the issue/requested action. Detailed supporting documents may be included as attachments.

This section highlights staff’s reasons for proposing the recommended Council action over other potential solutions discussed in the Alternatives portion of the Council Agenda Report.

II. FISCAL IMPACTS:

Required section for all staff reports, except for informational items.

State whether or not the item has been reviewed by the Finance Director.

The Fiscal Impacts portion of the Council agenda report should provide an assessment of fiscal impacts, both long and short term, of the proposed Council action. The assessment should include details pertaining to the proposed funding source(s), i.e. fund, department, and account number as contained in the budget.

III. LEGAL REVIEW:

Required section for all staff reports that include an agreement, ordinance, resolution.

Not required for informational items or items that do not require legal review.

CITY COUNCIL
Paul Creighton, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

State whether or not the item has been reviewed by the City Attorney.

IV. EXISTING POLICY:

Not required for all staff reports but should be included in most reports. Not required for informational items.

The Existing Policy section outlines current City policy/procedure pertaining to the agenda item. The report should cite specific code sections or policy documents that will be changed as a result of the proposed Council action.

This section will also include a description of how the item relates to the Strategic Plan.

As we currently do not have a strategic plan, a description of relevance may be skipped until a proper plan is adopted.

V. ALTERNATIVES:

Not required for all staff reports but should be included in most reports where the Council should be considering options, or discussion of options already investigated.

If there are Policy options for consideration, the discussion should be specific and detailed.

VI. INTERDEPARTMENTAL COORDINATION:

Optional section. When not using a section remove it. Make sure to check numbering of the Sections.

For projects that cross Departments should be listed.

VII. PUBLIC PARTICIPATION:

Optional section. Make sure to check numbering of the Sections.

The Public Participation section highlights workshops, mailings, meetings and other public involvement in the project. This would also include public stakeholders, other interested parties, and their respective positions.

VIII. ENVIRONMENTAL REVIEW:

Required section for all reports.

This project/item is exempt under the provisions of the California Environmental Quality Control Act.

The Environmental Review component of the Council Agenda Report provides a short synopsis of the environmental review and determination for the project. Supporting environmental documents should be included as attachments if applicable.

Agenda Report - Page 3

IX. STEPS FOLLOWING APPROVAL:

Required section for all reports, except for informational items.

The Steps Following Approval portion of the report should list subsequent steps for project implementation following Council approval. This description should be short and simple.

Prepared by:Name, Title (if prepared by section in beginning is not used and a staff support person did the research and prepared the report.) Attachments:

1. Samuel J. Rashe - General Plan Technical Advisory Committee Application (1)

2. Adam Reed - General Plan Technical Advisory Committee Application (1)

3. James Murphy III - General Plan Technical Advisory Committee Application (1)