Atwater City Council
December 12, 2022

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11362.3(b)(3), as may be amended or renumbered from time to time. (HH) “Youth center” means any:
(1) Public or private facility that is primarily and predominantly used to host recreation or social activities for minors, including, but not limited to:
(a) Private youth membership organizations or clubs,
(b) Social service teenage club facilities,
(c) Video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business; or
(d) Similar amusement park facilities.
(2) It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on City, county, or state parks.
(3) This definition shall not include any private martial arts, yoga, ballet, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

5.70.070 Licenses and Permits Required.
(A) No person may engage in any commercial cannabis activity within the City unless the person meets all of the following requirements:
(1) Possess a valid State of California Seller’s Permit; (2) Possess a valid Cannabis Regulatory Permit issued by the City; (3) Possess a valid Conditional Use Permit issued by the City; (4) Possess a valid Business License issued by the City; and (5) Is currently in compliance with all applicable state and local permits, laws, and regulations pertaining to the commercial cannabis business and the cannabis activities, including the duty to obtain any other required state or local licenses.

5.70.080 Maximum Number of Authorized Commercial Cannabis Businesses and Permit Types.

This section is intended to set a maximum number of commercial cannabis businesses that may operate within the City, and identify the number of authorized permit types that

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may be issued in order for commercial cannabis businesses to operate in the City. (A) The number of each type of commercial cannabis business that shall be permitted to operate in the City may be established by resolution by the City Council. (B) Each year following the City Council’s initial award of permits, if any, or at any time in the City Council’s discretion, the City Council may reassess the number of Cannabis Regulatory Permits which are authorized for issuance and make any changes by resolution.
(C) The City Council at its sole discretion may determine that the number and/or types of Cannabis Regulatory Permits should remain the same or be modified. (D) Nothing in this section shall be interpreted as limiting the City’s authority to impose moratoria or certain operational limitations on any businesses in the City, as otherwise authorized by the Government Code or the City’s police powers.

5.70.090 Community Benefits.
(A) The application procedure process may, at the discretion of the City Manager or his or her designee, include a component on community benefits. (B) Any community benefits that a commercial cannabis business agrees to provide shall be incorporated into the terms and conditions under which the commercial cannabis business will operate with the City’s approval, if and when a Cannabis Regulatory Permit is issued. Such terms and conditions shall be in addition to the requirements of this Chapter.
(C) Community benefits may include but will not be limited to: in-kind donations, sponsorships, and/or financial support for community events such as fairs, afterschool programs, youth centers, Boys and Girls Clubs, school athletic programs, school clubs, community centers, homeless shelters, senior centers, senior living facilities, parks, and recreation programs.

5.70.100 Evidence of Cannabis Owners and/or Employees; Background Check Required.
(A) Any person who is an owner, employee or who otherwise works within a commercial cannabis business must be legally authorized to do so under applicable state law.
(B) Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), as may be amended or renumbered from time to time and which authorize city authorities to access state and local criminal history information for employment, licensing, or certification purposes, and authorize access to federal level criminal

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history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every applicant for entitlements under this Chapter must submit fingerprints and other information deemed necessary by the city manager or their designee for a background check by the Atwater police department or a third party. A fee for the cost of the background investigation, which shall be the actual cost to the city of Atwater to conduct the background investigation as it deems necessary and appropriate, including city staff time and costs, shall be paid at the time the person submits for the background check. The persons subject to such background check are all owners, managers, supervisors, and any individual who will be participating in the direction, control, or management of the commercial cannabis business licensed in Atwater.
(C) The City or its third party contractor shall conduct said criminal background checks, which must at a minimum identify the following:
(1) Whether the owner or employee has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offenses in other states;
(2) Whether the owner or employee has ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or
(3) Whether the owner or employee has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code, as may be amended or renumbered from time to time.
(D) Evidence of a conviction of any the offenses enumerated in Section 5.70.100(C) of this Chapter, or any other crime involving moral turpitude, may result in denial of an outstanding application for a cannabis regulatory permit or associated conditional use permit or business license, and/or suspension of a cannabis regulatory permit, conditional use permit, or business license then in effect.

5.70.110 Application for Cannabis Regulatory Permit.

All persons seeking a Cannabis Regulatory Permit must make a written application to that effect upon a form to be provided by the City, which form may require the applicant to set forth certain information about the commercial cannabis business that is the subject of the application, including but not limited to operating hours, site plan, security plan, and employee information. At the time of filing, each applicant shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the

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application process.

5.70.120 Procedure Guidelines and Review Criteria to Evaluate Cannabis Regulatory Permit Applications.
(A) By resolution, the City Council shall adopt Procedure Guidelines and Review Criteria for the City’s evaluation of cannabis regulatory permit applications. (B) The Procedure Guidelines shall provide the process for soliciting applications, including time frames, limitations, requirements, forms, and rules for completing applications.
(C) The scoring metrics determined by the adopted Review Criteria shall be used to determine which candidates will be eligible to proceed to the final selection process.
(D) The City Manager or their delegate shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the Procedure Guidelines and Review Criteria, and to apply the Procedure Guidelines and Review Criteria to approve or disapprove an application for a Cannabis Regulatory Permit.

5.70.130 City’s Reservation of Rights.

The City reserves the right to reject any or all applications for a Cannabis Regulatory Permit. Prior to such permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to a failure to comply with other requirements in this Chapter, an application may be rejected for any of the following reasons:
(A) The application was received after the designated time and date of the deadline. (B) The application did not contain the required elements, exhibits, or was not organized in the required format.
(C) The application was considered not fully responsive to the request for a permit application, i.e., was incomplete.

5.70.140 Term of a Cannabis Regulatory Permit.

Each Cannabis Regulatory Permit issued pursuant to this Chapter shall expire when the

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commercial cannabis business for which the license is issued ceases operations authorized thereby. The term of a Cannabis Regulatory Permit shall otherwise be from the date of issuance to the end of the then-current fiscal year, at which point renewal will be required for the Cannabis Regulatory Permit not to lapse. Cannabis Regulatory Permits may be renewed as provided in Section 5.70.150.

5.70.150 Renewal of Cannabis Regulatory Permits.
(A) An application for renewal of a Cannabis Regulatory Permit shall be filed at least sixty (60) calendar days prior to the expiration date of the current permit. (B) The renewal application shall contain all the information required for new applications.
(C) The applicant shall pay a fee in an amount to be set by City Council resolution to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter. (D) An application for renewal of a Cannabis Regulatory Permit may, in the City Manager or his/her designee’s discretion, be rejected if any of the following occurs:
(1) The application is filed less than sixty (60) days before its expiration or a shorter time period which shall be at the discretion of the City Manager or his/her designee.
(2) The Cannabis Regulatory Permit is suspended or revoked at the time of the application for renewal.
(3) The commercial cannabis business has not exercised its Cannabis Regulatory Permit prior to the renewal application or the approved extension of the deadline from the City Manager or his/her designee. “Exercised” shall be defined as the earliest of when any of the following occur:
a. A Certificate of Occupancy has been issued,
b. The permitted use(s) has commenced on the site, and
c. A City Building Permit or Grading Permit is secured, and construction lawfully commenced.
(4) The commercial cannabis business has failed to conform to the requirements of the Cannabis Regulatory Permit or this Chapter or any regulations adopted pursuant to this Chapter.
(5) The commercial cannabis business has failed to submit sufficient

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documentation responsive to the City Council’s adopted Procedure Guidelines and Review Criteria, such that the City cannot make an informed decision regarding the application for renewal.
(6) The permit holder fails or is unable to renew its state license. (7) If the state has determined, based on substantial evidence, that the permitee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the Cannabis Regulatory Permit. (E) The City Manager or his/her designee is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager or his/her designee is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety, or welfare.

5.70.160 Existing Cannabis Developers.

As of the effective date of the Ordinance adding this Chapter 5.70 to this Title 5 of the Atwater Municipal Code, Chapter 5.60 shall only continue in effect as to cannabis businesses which hold current, non-expired entitlements obtained in accordance with Chapter 5.60. To the extent there are any conflicts between Chapter 5.60 and this Chapter

5.70, Chapter 5.70 shall govern except as to persons with current, non-expired entitlements under Chapter 5.60. Notwithstanding Section 5.70.110 of this Code, Existing Cannabis Developers operating pursuant to a valid Development Agreement and Conditional Use Permit and in good standing with the City, as of the effective date of this Chapter, may continue to operate on the same terms provided by said Development Agreement and Conditional Use Permit during the effective term of the Development Agreement executed with the City, unless terminated or extended earlier, as set forth in the Development Agreement. Prior to expiration of the Development Agreement, Existing Cannabis Developers who wish to continue cannabis business activities must submit a Cannabis Regulatory Permit renewal application under the procedures of Section

5.70.150 in order to transition to a Cannabis Regulatory Permit under this Chapter.

Failure to timely submit the Cannabis Regulatory Permit renewal application will result in expiration of all rights associated with the Development Agreement at the conclusion of the Development Agreement term. Once an applicant has applied for and been granted a Cannabis Regulatory Permit as required by this part, any entitlements previously held pursuant to a Development Agreement under Chapter 5.60 shall be deemed terminated, of no further force or effect, and superseded by the provisions of this Chapter 5.70.

5.70.170 Revocation of Permits.

Cannabis Regulatory Permits may be revoked for any violation of any state or local laws, and/or rules, and/or standards, policies, procedures, or regulations in this Chapter relating

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to cannabis.

5.70.180 Effect of State License Suspension or Revocation.

Suspension or revocation of a state license, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the City until the State of California or its respective department or division reinstates or reissues the state license, or otherwise takes appropriate action.

5.70.190 Grounds for Appeal.

Appeals relating to additional or changed terms imposed by the City upon an existing Cannabis Regulatory Permit or Conditional Use Permit, to revoke or suspend a Cannabis Regulatory Permit, or to deny renewal of an application for a permit or application to amend the terms of a permit, shall be conducted as prescribed in this Chapter. An applicant that is eligible to participate in the interview or other final decision process but is not selected during the interview or other final decision process shall not be eligible to appeal the outcome of the process.

5.70.200 Written Request for Appeal.
(A) Within ten (10) calendar days after the date of a decision to revoke or suspend a Cannabis Regulatory Permit, or deny an application to renew a Cannabis Regulatory Permit, or to add or change conditions to a permit, an Applicant or Permittee may appeal such action by filing a written appeal with the City Clerk setting forth the reasons why the decision was not proper. (B) At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the City Council from time to time.

5.70.210 Notice of Appeal Process.
(A) Within ten (10) calendar days after service of the notice of the decision to revoke or suspend a permit, to deny a renewed application for a permit, or to add or change conditions to a permit, the applicant or permittee may appeal such action by filing a written Notice of Appeal with the City Clerk setting forth the reason why the decision was not proper. For an initial permit application appeal, the reason for appeal must be stated with specificity. Date of service shall mean the date when a notice or written decision was caused to be delivered by certified, first class mail.

Lack of receipt of the notice by the Applicant or Permittee cannot form the basis for an appeal.
(B) The Notice of Appeal shall be in writing and signed by the person making the appeal (“Appellant”), or their legal representative, and shall contain the following:

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(1) Name, address, and telephone number of the appellant. (2) Specify decisions, actions, or a particular part thereof, that are the subject of the appeal.
(3) Include a true and correct copy of the notice issued by the City which the appellant is appealing.
(4) State with specificity the reasons and grounds for making the appeal, including, but not limited to, a statement of facts upon which the appeal is based in sufficient detail to enable the hearing officer to understand the nature of the controversy, the basis of the appeal, and the relief requested. (5) All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer or body to consider at the hearing. (6) An appeal fee as established by Resolution of the City Council. (C) Failure of the City Clerk to receive a timely appeal constitutes a waiver of the right to appeal the notice issued by the City. In this event, the City’s notice of revocation, nonrenewal, change or addition of permit terms, or suspension shall be final. (D) In the event a written Notice of Appeal is timely filed, the nonrenewal, suspension, revocation shall not become effective until a final decision has been rendered and issued by the hearing officer. Notices of Appeal not served in a timely manner or otherwise not in accordance with the provisions of this Chapter shall not be construed as allowing such business to operate pending appeal. (E) If no appeal is timely filed in the event of a decision of nonrenewal, the Cannabis Regulatory Permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision supporting suspension or revocation, the suspension or revocation shall become effective upon the expiration of the period for filing a written Notice of Appeal. (F) A hearing officer, as appointed by the City Manager or his/her designee, shall hear appeals under this Chapter.

5.70.220 Appeal Hearing Process.
(A) Appellants who file a timely written Notice of Appeal will be entitled to an administrative hearing before the hearing officer.
(B) Upon receipt by the City Clerk of a timely-filed Notice of Appeal pertaining to suspensions, revocations, change or addition of permit terms, or non-renewals, the City Clerk shall schedule a hearing within forty five days (45) days or as soon

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as reasonably possible thereafter, or upon any other date that the City and appellant shall mutually agree upon.
(C) The appellant(s) listed on the written Notice of Appeal shall be notified in writing of the date, time, and location of the hearing at least ten (10) days before the date of the hearing (“Notice of Hearing”).
(D) A request by an appellant to continue a hearing must be submitted to the City Clerk in writing no later than three (3) business days before the date scheduled for the hearing. The City may continue a hearing for good cause, or on its own motion.

However, in no event may the hearing be continued for more than thirty (30) calendar days, unless there is a stipulation by all parties to do so. (E) At the date, time, and location set forth in the Notice of Hearing, the hearing officer shall hear and consider the testimony of the appellant(s), City staff, and/or their witnesses, as well as any documentary evidence properly submitted for consideration.
(F) The following rules shall apply at the appeal hearing:
(1) Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, collateral, undue, and repetitious testimony may be excluded.
(2) The Appellant shall bear the burden of proof by a preponderance of the evidence.
(3) The hearing officer may not accept and consider late evidence not submitted initially with the Notice of Appeal unless the appellant demonstrates the lateness was due to his or her mistake, inadvertence, surprise, or excusable neglect. The hearing officer shall make such determinations on a case-bycase basis. (4) The appellant may bring a language interpreter to the hearing at their sole expense.
(5) The City may, at its discretion, record the hearing by stenographer or court reporter, audio recording, or video recording. If the appellant requests from the City that a court reporter, stenographer, or videographer be used, appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.
(G) If the appellant, or their legal representative, fails to appear at the appeal hearing, the hearing officer may open the appeal hearing, allow the City to present its prima

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facie evidence in support of the challenged decision, and ask the hearing officer to make a determination as to the appeal on the record. The hearing officer shall then send a notice of its determination to the appellant by certified, first class mail to the address(es) stated on the Notice of Appeal. A cancellation of a hearing due to nonappearance of the appellant shall constitute the appellant’s waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the hearing officer’s notice of decision is final and binding. (H) Final Decision. Following the conclusion of the administrative hearing, the hearing officer shall issue a written decision within a reasonable time which (i) determines if the action appealed from is affirmed or overturned and (ii) specifies the reasons for the decision.
(I) A copy of the written decision shall be served by certified, first class mail on the appellant, unless other service method shall be agreed to between the parties.

Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the City pursuant to this Chapter.

5.70.230 Permittee-Requested Change to Cannabis Regulatory Permit.

To request a change to any term specified in a Cannabis Regulatory Permit, the Permittee shall submit an updated application form to the City Manager for approval prior to the change in location. The form and the fee for the processing of said change to a term of the Cannabis Regulatory Permit shall be established by the City Manager; in no event will such fee exceed the actual cost to the City of processing the change.

5.70.240 Transfer of Cannabis Regulatory Permit.
(A) The holder of a Cannabis Regulatory Permit shall not transfer the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager approving such transfer. To obtain an amendment to a Cannabis Regulatory Permit identifying a new holder of the permit, the transferee must file an application for transfer with the City Manager in accordance with the provisions of this Chapter (as though the transferee were applying for an original Cannabis Regulatory Permit). The proposed transferee’s application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee). The transferee’s application will be treated as a new application, and will be evaluated according to the Procedure Guidelines and Review Criteria adopted by the City Council, pursuant to Section 5.70.120.
(B) Cannabis Regulatory Permits issued through the grant of a transfer by the City Manager shall be valid beginning on the day the City Manager approves the transfer of the permit, and extending through the last day of the then-current fiscal year. Before the transferee’s permit expires, the transferee shall apply for a

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renewal permit and pay the appropriate fee in the manner required by this Chapter. (C) A Cannabis Regulatory Permit shall not be transferred when the City has notified the Permittee in writing that the permit has been or may be suspended or revoked. (D) Any attempt to transfer a Cannabis Regulatory Permit either directly or indirectly in violation of this section is hereby declared a violation of the permit and this ordinance. Such a purported transfer shall be deemed a ground for revocation of the permit.

5.70.250 Conditional Use Permit Required to Engage in Commercial Cannabis Activity
No person may engage in any commercial cannabis activity within the City unless the person holds a valid Conditional Use Permit issued by the City and operates in compliance with all terms and conditions of said Conditional Use Permit at all times.

5.70.260 Cannabis Regulatory Permit Required to Engage in Cannabis Business Activity
No person may engage in any commercial cannabis business activity within the City unless the person holds a valid Cannabis Regulatory Permit issued by the City and operates in compliance with all terms and conditions of said Cannabis Regulatory Permit at all times.
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5.70.270 Building Permits and Inspection.

Prior to commencing operations, a Cannabis Regulatory Permittee shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), Fire Department approvals, Police Department approval, Code Enforcement, Planning, and County Health Department approvals, and any other applicable zoning and land use permit(s) and approvals, and paying any associated fees or charges for such permits, approvals, or inspections.

5.70.280 Right to Occupy and to Use Property.

Prior to the City ’s issuance of a Cannabis Regulatory Permit pursuant to this Chapter, any person intending to open and to operate a commercial cannabis business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location for the permitted activity.

5.70.290 Location and Design of Commercial Cannabis Businesses.

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(A) A commercial cannabis business must meet all applicable land use and building standards, including without limitation:
(1) Conformance with the City’s general plan, any applicable specific plan, master plan, and design requirements.
(2) Compliance with all applicable zoning and related development standards pursuant to Title 15, Title 16, and Title 17 of this Code. (3) Construction of the business facilities in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.
(4) A lot that is adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development.
(5) Service by streets and/or alleys adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate. (6) Availability of adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose. (B) A commercial cannabis business shall be no closer than six hundred (600) feet from any parcel in the City designated as a Sensitive Use that is in existence at the time the permit is issued. The distance shall be determined by the horizontal distance measured in a straight line from the closest property line of the Sensitive Use to the closest property line of the lot on which the commercial cannabis business is to be located, without regard to intervening structures.

5.70.300 Authorization from the Community Development Director.

Prior to commencing operations, a commercial cannabis business must request written authorization from the Community Development Director certifying that the business is located on a site that meets all of the requirements of Sections 5.70.250 through 5.70.300, inclusive.

5.70.310 Limitations on City’s Liability.

To the fullest extent permitted by law, the City of Atwater shall not assume any liability whatsoever with respect to having issued a Cannabis Regulatory Permit pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any Cannabis Regulatory Permit, the applicant shall be

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required to meet all of the following conditions before they can receive the Cannabis Regulatory Permit:
(A) Execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City of Atwater, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City’s issuance of the Cannabis Regulatory Permit, the City ’s decision to approve the operation of the commercial cannabis business or activity, the process used by the City in making its decision, or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents. (B) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager. (C) Reimburse the City for all costs and expenses, including but not limited to legal fees and court costs, which the City may be required to pay as a result of any legal challenge related to the City’s approval of the Applicant’s Cannabis Regulatory Permit or related to the City’s approval of a cannabis business activity. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder.

5.70.320 Records and Recordkeeping.
(A) Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a Cannabis Regulatory Permit issued pursuant to this Chapter), or at any time upon reasonable request of the City or designee, each commercial cannabis business shall file a sworn statement detailing the number and amount of sales by the commercial cannabis business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City or its designee a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the City.
(B) Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the

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commercial cannabis business, and separately from all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager or designee upon a reasonable request. (C) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing processes until purchase as set forth in the MAUCRSA.

5.70.330 Fees and Charges.
(A) No person may commence or continue any cannabis business activity in the City without first timely paying in full all fees and charges required for the operation of a commercial cannabis business. Fees and charges associated with the operation of a commercial cannabis business shall be established by resolution of the City Council and may be amended from time to time.
(B) All commercial cannabis businesses authorized to operate under this Chapter shall pay all sales, use, business and other applicable taxes, and all license, permit, registration, and other fees required under federal, state, and local law. Each commercial cannabis business shall cooperate with the City with respect to any reasonable request to audit the commercial cannabis business’s books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes or fees required to be paid during any period.

5.70.340 Security Measures.
(A) A Cannabis Regulatory Permittee shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the City Manager, these security measures shall include, but shall not be limited to, all of the following:
(1) Perimeter fencing and exterior lighting systems (including motion sensors) for after-hours security as approved by the Police Chief and/or the Community Development Director were applicable.
(2) Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business. In cases in which the individual will not voluntarily leave the premises, the cannabis employee

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shall contact the Police Department.
(3) Establishing limited access areas accessible only to authorized commercial cannabis business personnel.
(4) All finished cannabis goods at non-retail commercial cannabis businesses shall be stored in secured and locked vault or vault-equivalent during nonoperating hours. All safes and vaults used to store cash and/or cannabis goods shall be compliant with Underwriter Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products, including live clone plants that are being sold, shall be kept in a manner as to prevent diversion, theft, and loss.
(5) Installing 24-hour security surveillance cameras of at least high-definition (HD) quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash, or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions.

The commercial cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the City Manager, and that it is compatible with the City’s software and hardware. In addition, if required, remote and real-time, live access to the video footage from the cameras shall be provided to the Police Chief at the expense of the permittee. Video recordings shall be maintained for a minimum of ninety (90) days and shall be made available to the Police Chief upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business and shall be capable of enlargement via projection or other means. Internet Protocol address information shall be provided to the Police Department by the commercial cannabis business, to facilitate remote monitoring of security cameras by the Department or its designee. Each business shall have network security protocols that are certified by Underwriters Laboratories. (6) Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services. (7) Panic buttons shall be installed in all commercial cannabis businesses with direct notification to the Police Department dispatch and shall be configured to immediately alert dispatch for the Police Department.

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(8) Having a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services. The licensee shall be required to obtain an alarm permit from the Police Department.
(9) Any security measures, such as bars, installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building.
(10) Uniformed security personnel shall be on-site 24 hours a day to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. The City Manager may in his or her discretion establish an alternative to on-site 24 hour security personnel at the request of the permittee. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, with such approval not to be unreasonably withheld.
(11) Each commercial cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
(12) Entrance areas are to be locked at all times and under the control of a designated responsible party that is either; (a) an employee of the commercial cannabis business; or (b) a licensed security professional. (13) Each commercial cannabis business shall have an accounting software system in place to provide point of sale data as well as audit trails of both product and cash, where applicable.
(14) Each commercial cannabis business shall demonstrate to the Police Chief, City Manager or their designees, compliance with the state’s track and trace system for cannabis and cannabis products.
(15) Each commercial cannabis business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.
(16) Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises. (17) Emergency access and emergency evacuation plans that are in compliance

Ordinance No. CS 1055 Page 26
with state and local fire safety standards.
(18) Installation of “mosquitos” (high-pitch frequency devices) as a deterrent to vandalism/loitering.
(19) Other such reasonable security measures as may be deemed appropriate by the City Manager or designee.
(B) Each commercial cannabis business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the City Manager and/or Police Chief regarding any security related measures and/or operational issues. The designated security representative/liaison shall, on behalf of the commercial cannabis business, annually maintain a copy of a current security plan on the premises of the business, to present to the City Manager and/or Police Chief, upon request, that meets the following requirements:
(1) Confirms that a manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.
(2) Identifies all managers of the commercial cannabis business and their contact phone numbers.
(3) Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager’s office.
(4) Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company. (5) Identifies a sufficient number of licensed, interior, and exterior security personnel who will monitor individuals inside and outside the commercial cannabis business, the parking lot, any adjacent property under the business’ control, and ensure that the parking lot is cleared of employees and their vehicles one-half hour after closing.
(C) As part of the application and licensing process each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.
(D) The commercial cannabis business shall cooperate with the City whenever the City Manager makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter.

Ordinance No. CS 1055 Page 27
(E) A commercial cannabis business shall notify the City Manager within twenty-four (24) hours after discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager. (2) Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business.
(a) The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the commercial cannabis business.
(b) Any other breach of security.
(F) Compliance with the foregoing requirements shall be verified by the City Manager prior to commencing business operations. The City Manager may supplement these security requirements once operations begin, subject to review by the City Manager if requested by the business owner.

5.70.350 General Operating Requirements.
(A) Commercial cannabis businesses may operate only during the hours specified in the Cannabis Regulatory Permit issued by the City.
(B) Restriction on Sales and Consumption. Cannabis shall not be consumed by any person on the premises of any commercial cannabis business, except as provided in Section 5.70.470 of this Chapter. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the commercial cannabis business.
(C) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a Cannabis Regulatory Permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time.
(D) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. The commercial cannabis business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the

Ordinance No. CS 1055 Page 28
system must have the capability to produce historical transactional data for review.

Furthermore, any system selected must be approved and authorized by the City Manager prior to being used by the permittee.
(E) All cannabis and cannabis products sold, distributed, or manufactured shall be cultivated, manufactured, and transported by state licensed facilities that maintain operations in full conformance with the State and local regulations. (F) Emergency Contact. Each commercial cannabis business shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.
(G) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of Chapter 17.69, Sign Regulations, of the Atwater Municipal Code, including, but not limited to, seeking the issuance of a City sign permit.
(2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window. (3) Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited.
(4) No commercial cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of-way.
(5) Signage shall not depict any image of cannabis or cannabis products. No banners, flags, snipe signs, billboards, or other prohibited signs may be used at any time.
(H) Minors.
(1) Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one (21) years of age.

Ordinance No. CS 1055 Page 29
(2) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the commercial cannabis business.
(3) Notwithstanding Section 5.70.360(H)(1), persons aged 18 to 20 years shall be allowed on the premises of a commercial cannabis business if they can produce a physician’s recommendation. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the physician’s recommendation. (I) Odor Control. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the Community Development Director or his/her designee(s) determines is a more effective method or technology:
(1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
(2) An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.
(J) Display of Regulatory Permit and City Business License. The original copy of the Cannabis Regulatory Permit issued by the City pursuant to this Chapter and the City issued business license shall be posted inside the commercial cannabis business in a location readily visible to the public.
(K) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. The commercial cannabis business shall notify the Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the individual has failed to leave in a timely manner.

Ordinance No. CS 1055 Page 30
(L) Each cannabis operator shall establish minimum training standards for all employees. The City Manager shall have the discretion to require other training for the business operations should the City identify deficiencies or non-compliance issues with City or state requirements.

5.70.360 Amendments to General Operating Requirements.

The City Manager may develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety, and welfare.

5.70.370 Additional Operating Requirements for Store Front/Retail Facilities. (A) No more than the number of cannabis retailers adopted by Council resolution may operate within the City at any one time and shall be issued a permit by the City. (B) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen (18) years. If the potential customer is 18 to 20 years old, retailer shall confirm the customer’s possession of a valid doctor's recommendation and/or an identification card under Health and Safety Code Section 11362.71 (Medical Marijuana Card), as may be amended or renumbered from time to time. For adult-use purchases, retailers shall verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products.
(C) Individuals must show their government-issued identification, and, in the case of medical cannabis facilities, their physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71, in order to gain access into a storefront retailer. The government-issued identification and, if applicable, doctor’s recommendation or cannabis card must also be shown at the point-of-sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.
(D) Uniformed licensed security personnel shall be employed at all storefront retail sites to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities, in accordance with Section 5.70.350(a)(10).

Security personnel may be allowed to carry firearms if authorized by the Police Chief. All security personnel hired or contracted for by the permittee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. (E) Storefront retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which

Ordinance No. CS 1055 Page 31
customers, vendors, and visitors shall not have access. (F) All restroom facilities shall remain locked and under the control of management. (G) Retailers authorized to conduct retail activities shall only serve customers who are within the permitted premises, or at a delivery address that meets the requirements of this subdivision.
(1) The sale and delivery of cannabis goods shall not occur through a passthrough window or a slide-out tray to the exterior of the premises. (2) Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle. (3) No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.
(4) All cannabis goods sold by a retail business shall be contained in childresistant packaging. (5) Retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity. (I) Limited Access Areas. A storefront retailer shall establish limited-access areas, as defined by this Chapter, which permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager, Police Chief, or their designees upon request. (J) Operating hours of a store front or non-store front retailer’s business shall be limited to the hours and days specified in the Cannabis Regulatory Permit issued by the City.
.70

5.70.380 Additional Operating Requirements for Distributors.

Distributors shall be required to conduct all permitted operations in a manner pursuant to

Ordinance No. CS 1055 Page 32
Business and Professions Code Section 26080, as may be amended or renumbered from time to time, and shall be subject to state and local law. Distributors may be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same.

5.70.390 Additional Operating Requirements for Testing Labs. (A) Testing Labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100 et seq., as may be amended or renumbered from time to time, and shall be subject to state and local law. Each Testing Lab may be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same.
(B) Testing Labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.
(C) All cannabis testing laboratories performing testing shall obtain and maintain ISO/IEC 17025 accreditation as required by the Department of Cannabis Control.

5.70.400 Additional Operating Requirements for Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale of Edible and Other Cannabis Products.
(A) Cannabis manufacturing shall only be permitted pursuant to Business and Professions Code Section 26130 et seq., as may be amended or renumbered from time to time, and shall be subject to state and local law. Each manufacturing site may be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same.

5.70.410 Additional Operating Requirements for Cultivators. (A) Cannabis cultivation shall only be permitted pursuant to Business and Professions Code Section 26060 et seq., as may be amended or renumbered from time to time, and shall be subject to state and local law. Each cultivation site may be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same.
(B) Outdoor Cultivation Prohibited. The cultivation of all cannabis must occur indoors.

All outdoor cultivation, including outdoor greenhouse cultivation, is prohibited. (C) Cannabis plants shall not be visible from a public or private road, sidewalk, park,

Ordinance No. CS 1055 Page 33
or any common public viewing area.
(D) Cultivator shall only be allowed to cultivate the square feet of canopy space permitted by state law. Research and development area shall be limited to ten percent (10%) of the total permitted canopy square footage. (E) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters.
(F) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the cultivation site, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(G) All applicants for a cultivation permit shall submit the following information, in addition to the information generally otherwise required for a Cannabis Regulatory Permit:
(1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for allseason harvesting (indoor, mixed-light). (2) A description of a legal water source, irrigation plan, and projected water use. (3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes.
(4) Plan for addressing public nuisances that may derive from the cultivation site.

5.70.420 Delivery Requirements for Store Front Retail, Non-Store Front Retail, and Microbusinesses.
(A) Non-Store Front Retailer Permit Owners and Operators are required to verify the age and the necessary documentation of each customer. They must ensure that medical customers are at least eighteen (18) years of age and verify that the customer has a valid doctor’s recommendation. Doctor recommendations are not

Ordinance No. CS 1055 Page 34
to be obtained or provided at the retail location. In the case of adult-use customers, they must verify that the customer is at least twenty-one (21) years of age. Sales shall only be made to persons matching this criteria.
(B) Operating hours of the Non-Store Front Retailer Permit shall be limited to the hours and days specified in the Cannabis Regulatory Permit issued by the City. (C) Prior to commencing delivery operations, a cannabis Store Front Retailer, cannabis Non-Store Front Retailer and Microbusiness shall provide the following information to the City:
(1) Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.
(2) The year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.
(3) Proof of insurance for any and all vehicles being used to deliver cannabis goods.
(D) The permittee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days.

5.70.430 Operating Requirements for Out-of-City Delivery Services.

Prior to commencing operations, a retail business operating a delivery service that is based outside of the City of Atwater shall provide the City Manager with evidence of a valid state license for a commercial cannabis business on whose authorization the delivery service is performing the delivery function.

5.70.440 Permissible Delivery Locations and Customers.

Cannabis delivery businesses permitted to engage in delivery of cannabis and cannabis products inside the City of Atwater are subject to the following requirements:
(A) A permitted commercial cannabis business shall comply with all requirements of state and local law pertaining to the Cannabis Regulatory Permit and all subsequent policies, procedures and regulations which may be amended by the City Manager from time to time in order to enforce this Chapter. (B) Any kiosk, iPad, tablet, smartphone, fixed location, or technology platform, whether manned or unmanned, other than a storefront retail location permitted by the City, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this Chapter.

Ordinance No. CS 1055 Page 35

5.70.450 Promulgation of Additional Regulations, Standards, and Other Legal Duties.
(A) In addition to any regulations adopted by the City Council, the City Manager is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Regulatory Permit, the ongoing operation of commercial cannabis businesses and the City's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter.
(B) Regulations promulgated by the City Manager shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.

5.70.460 Community Relations Contact Person.
(A) Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within one hundred (100) feet of the commercial cannabis business.
(B) During the first year of operation pursuant to this Chapter, the owner, manager, and community relations representative from each commercial cannabis business holding a permit issued pursuant to this Chapter shall, upon request, attend meetings with the City Manager, and other interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of operation, the owner, manager, and community relations representative from each such commercial cannabis business shall meet with the City Manager when and as requested by the City Manager.

5.70.470 On-Site Consumption and Temporary Cannabis Event Permits (A) Except as expressly permitted in this section, no commercial cannabis business may authorize the consumption or use of any cannabis, tobacco, or alcohol products within the commercial cannabis business’s footprint, inclusive of all indoor and outdoor facilities.
(B) A commercial cannabis business may apply to the City Manager for a temporary cannabis event permit, authorizing limited consumption at the commercial cannabis business facility, by submitting a request in writing that certifies each of

Ordinance No. CS 1055 Page 36
the following:
(1) The consumption will not occur within 1,000 feet of any sensitive use, as that term is defined by this Chapter.
(2) The consumption will not occur during the hours of 12:00 a.m. to 8:00 a.m. (3) The consumption will occur within an area of the property that is set back a minimum of 50 feet from the lot lines.
(4) No alcohol or tobacco products will be sold or consumed as part of the event. (5) Access to any area where sale or consumption of cannabis is occurring as part of the event is limited to persons 21 years of age or older. (C)An application for a temporary cannabis event permit under this Section must be submitted at least 45 days prior to the proposed event to be accepted for processing.
(D)The City Manager reserves the discretion to deny or approve all permit requests, subject to consultation with the Police Department and any other City departments.

The City Manager will notify the applicant of the approval or denial of the permit within 30 days of receipt of the application.
(E) The City Manager may place conditions upon the issuance of a temporary cannabis event permit. Failure to remain in compliance with any such condition will result in the immediate termination of the event by the City and any other actions that the City may be legally entitled to take against the violating business.

5.70.480 Fees Deemed Debt to the City.

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

5.70.490 Permit Holder Responsible for Violations.

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

5.70.500 Inspection and Enforcement.
(A) The City Manager, or designee, charged with enforcing the provisions of the City

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of Atwater Municipal Code, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law.
(B) It is unlawful for any person having responsibility over the operation of a commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law.
(C) The City Manager, or designee charged with enforcing the provisions of this Chapter may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of Atwater shall be logged, recorded, and maintained in accordance with established procedures by the City of Atwater’s City Manager or these regulations.

5.70.510 Violations.

In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, and administrative penalties pursuant to Section 1.01.110 of this Code. Each and every violation of the provisions of this Chapter constitutes a misdemeanor and is hereby deemed unlawful and a public nuisance. Further, any person who violates any provision of this Chapter is liable for administrative penalties of not less than $250 or more than $25,000 for each day the violation continues. The severity of the penalty imposed shall depend on the severity of the violation in the City’s discretion. Any person found in violation of this code and assessed an administrative penalty accordingly may appeal the amount of such penalty to the City Council by following the procedures set forth in Chapter 1.12 of this Code. The City reserves the right to pursue any available legal remedy to address violations of this Chapter.

SECTION 2. CEQA. The proposed amendment to the Atwater Municipal Code is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061 of the CEQA Guidelines. Section 15061 states that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Cannabis businesses will be required to meet all local, state, and federal health and safety regulations to ensure that that there are no significant environmental impacts to the

Ordinance No. CS 1055 Page 38
cannabis use sites and surrounding properties. The businesses authorized under this ordinance are similar to already existing permitted general uses in the affected areas, such as retail, with the only difference being the product sold or consumed (i.e. cannabis).

No update to the zoning code is proposed at this time, meaning this ordinance will not create negative environmental impacts or result in physical changes to the environment.

There are no outdoor commercial cultivation activities permitted under this ordinance. Any future updates to zoning or permitted land uses in Atwater connected to this cannabis ordinance will require separate, additional CEQA analysis.

SECTION 3. CEQA. The City Council hereby determines that this Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) (California Public Resources Code §21000 et seq.) pursuant to State CEQA Guidelines Section 15061(b)(3) and Business and Professions Code Section 26055(h), each as separate and independent bases. Pursuant to State CEQA Guidelines, Section 15061(b)(3), it can be seen with certainty that the Ordinance will not have a significant effect on the environment because it would require a regulatory permit and impose operating criteria on cannabis retailers. Additionally, Business & Professions Code Section 26055(h) provides that CEQA does not apply to the adoption of an ordinance by a local jurisdiction that requires discretionary review and approval of permits to engage in commercial cannabis activity that includes applicable environmental review.

SECTION 4. Severance. If any section, subsection, phrase, or clause of this ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 5. Publication. This ordinance shall be published in accordance with the provisions of Government Code Section 36933.

SECTION 6. Effective Date. This ordinance shall become effective thirty days from the date of adoption.

INTRODUCED:

ADOPTED:

AYES:

NOES:

ABSENT:

APPROVED:
________________________________

PAUL CREIGHTON, MAYOR

Ordinance No. CS 1055 Page 39
ATTEST:
_________________________________

LUCY ARMSTRONG, CITY CLERK

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. 3356-22

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ATWATER SETTING A CANNABIS

BUSINESS TAX WITHIN THE AMOUNT

PREVIOUSLY APPROVED BY THE VOTERS AT

VARIOUS RATES OF GROSS RECEIPTS

DEPENDING ON THE BUSINESS TYPE,

ESTABLISHING THE TAX DUE DATE, AND

ADOPTING THE RELATED PENALTIES AND

INTEREST CHARGES
WHEREAS, on May 14, 2018, the City Council of the City of Atwater adopted Ordinance No. CS 996 to regulate the operation of commercial cannabis business within the City and establish a Cannabis Business Pilot Program; and
WHEREAS, on May 29, 2018 the City Council placed before the voters a ballot measure, “Measure A,” to enact an ordinance allowing the City Council to implement a tax on gross receipts of cannabis businesses within the City; and
WHEREAS, Atwater voters approved Measure A on November 6, 2018 by 65% of local voters, and thus the City adopted chapter 3.54, Cannabis Business Tax, to Title 3, Revenues and Finance of the municipal code, which imposes a business license tax at a rate of up to fifteen percent (15%) on gross receipts of commercial cannabis businesses in the City of Atwater, with the tax rate to be set by resolution of the City Council; and WHEREAS, on February 25, 2019 the City of Atwater City Council imposed a business license tax of fifteen percent (15%) of gross receipts of any cannabis-related business that had not entered into a development agreement with the City; and WHEREAS, on May 10, 2021 the City of Atwater entered into a professional service agreement with HdL Companies to assist with Cannabis Management Services, migrating the pilot program into a permanent cannabis business program, providing a fiscal revenue analysis, and recommending tax rates; and
WHEREAS, the City Council desires to adopt a resolution establishing Cannabis Business Tax rates that are more structured, depending on business type, and based

Resolution No. 3356-22 Page 2
upon gross receipts for clarity and consistency across all cannabis business types in the City.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Atwater does hereby set the cannabis-related business license tax at various rates of gross receipts depending on the business type and imposes certain penalties and interest charges for delinquent payments, as follows:

A. Pursuant to Chapter 3.54, Cannabis Business Tax, the Cannabis Business Tax is hereby imposed at rates ranging from 2.0% to 6.0% of all gross receipts of those engaged in cannabis business within the City of Atwater, as follows:

Cannabis Business Type Tax Rate/Percentage of Gross Receipts Cultivation 2.5%
Distribution 3.0%
Manufacturing 4.0%
Nursery 2.0%
Retail 6.0%
Testing 2.0%
B. The Cannabis Business Tax must be remitted to the City by the 15th of each month for the preceding month of cannabis gross receipt activity. Failure to pay the cannabis business tax by the due date shall be subject to the penalties and interest charges established by this Resolution.

C. Pursuant to Chapter 3.54, Cannabis Business Tax, the Cannabis Business Tax penalty and interest charges for Delinquency is hereby imposed as follows:
(A) Any person who fails or refuses to pay any business tax required to be paid pursuant to this article on or before the due date shall pay penalties and interest as follows:
(1) A penalty equal to twenty-five percent (25%) of the amount of the tax in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax; and
(2) An additional penalty equal to twenty-five percent (25%) of the amount of the tax if the tax remains unpaid for a period exceeding one calendar month beyond the due date, plus interest on the unpaid tax and on the unpaid penalties.
(3) In addition to the penalties imposed, any person who fails to remit any tax imposed by this article shall pay interest at the rate of one and one-half (1.5) percent per month or fraction thereof on the amount of tax, exclusive of penalties, from the last day of the month following the monthly period for which the amount or any portion thereof should have been paid until the date of payment.
(4) Full payment of the tax owed is to be made to the City, except in cases where an alternate payment agreement is reached with the Administrator.

Resolution No. 3356-22 Page 3
(5) The penalties stated herein are cumulative and may be imposed singularly and/or in addition to other legal remedies for nonpayment available to the City.
(B) Whenever a check is submitted in payment of a business tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior to the due date, the taxpayer will be liable for the tax amount due plus the return check fee; penalties and interest as provided for in this section; and any amount allowed under state law. (C) The cannabis business tax due shall be that amount due and payable from the first date on which the person was engaged in cannabis business in the City, together with applicable penalties and interest calculated in accordance with subsection (A).
(D) Any person whose cannabis business tax is delinquent by at least sixty calendar days may be subject to revocation of a City use permit or other City permit associated with the subject cannabis business.

BE IT FURTHER RESOLVED that this resolution shall be effective as of the date Ordinance No. 1055 takes effect, which shall be 30 days from its second reading and adoption by the City Council.

The foregoing resolution is hereby adopted this 12th day of December 2022.

AYES:

NOES:

ABSENT:

APPROVED:

________________________________

PAUL CREIGHTON, MAYOR
ATTEST:
_________________________________

LUCY ARMSTRONG, CITY CLERK

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Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23
Cost Recovery, Legal Services Actual Cost
Cost Recovery, Liability Claim Processing Actual Cost
Notary Services (as set by GC 8211) No COLA associated $15 per signature Mailed Copies of City Council Agenda (per fiscal year) $40 Mailed Copies of City Council Minutes (per fiscal year) $38 Mailed Copies of City Council and Planning Agendas and Minutes (per fiscal year) $136
Copy of City Council Video DVD $11
Final Budget (summary) $13
Final Budget $49
Copy of Municipal Code to CD $11
Preliminary Budget $34
Annual Financial Statement $30
Five Year Capital Improvement Budget $20
Voucher $35
Business License Listing $26
Mailing Labels for Business License $35
Abatement Lien $45
Photocopies (first page) $4
Photocopies (per copy of B/W) $0.11
Photocopies (per copy of color) $0.20
Returned Checks $43
Electronic Payment Processing Fees Up to 5% of the total amount Donation Bin Permit/Renewal Processing Fee $50 annually Donation Bin Permit Sticker (replacement) $12
Research Actual Cost
COMMUNITY DEVELOPMENT:

BUILDING DIVISION:

Building Inspection Fee (minimum 1 hour) $130 per hour
Monthly Building Activity Reports (per fiscal year) $32 Building Permit Plan Reproduction (smaller than 11x17) $81 Building Permit Plan Reproduction (larger than 11x17) $161

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PLANNING DIVISION:

Building Permit Application Plan Review (15 mins.) $51
Building Permit Application Plan Review (16 to 30 mins.) $103 Building Permit Application Plan Review (over 30 mins.) $205 General Plan (Copy or Disk) $62
General Plan EIR (Copy or Disk) $67
Specific Plan Application Deposit $10,157, Actual Cost + 20% Specific Plan Preparation Actual cost + 20%
Housing Element (Copy or Disk) $42
General Plan or Zoning Map Reproduction $15
Street Tree Master Plan $34
Annexation Application $3,063 plus $115 per acre
Appeal of Staff Decision to Community Development & Resources Commission
$223
Appeal of Community Development & Resources Commission Decision to City Council $223
Environmental Assessment (Review of private prepared document) Actual Cost + 20% Environmental Assessment Preparation for Private Development Project Actual Cost + 20% Environmental Impact Report Preparation Actual Cost + 20% General Plan Amendment Preparation Deposit $2,031, Actual cost + 20% Home Occupation Permit $207
Lot Line Adjustment Deposit $676 + actual cost
Lot Merger Deposit $676 + actual cost
Monthly Building Activity Reports (per fiscal year) $31 Pre-zoning Deposit $2,041 + actual cost
Reversion to Acreage Deposit $676 + actual cost
Sign Review $175
Site & Architectural Plan Review Deposit $1,029 + actual cost Tentative Subdivision Map
Deposit $3,046 + $61 per lot, Actual Cost +
20%
Tentative Parcel Map
Deposit $1,876 + $61 per lot, Actual Cost +
20%
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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Condominium Conversion Actual Cost + 20%
Regular Conditional Use Permit Actual Cost. $2,000 Minimum Deposit Conditional Use Permit Monitoring $147 Annually
Commercial Conditional Use Permit General Plan Update Fee $228 Variance Deposit $993, Actual Cost + 20%
Zone Change Deposit $1847, Actual Cost + 20%
Zoning Ordinance Text Amendment Deposit $1847, Actual Cost + 20% Time Extension Request Application Original Application Fee Planned Development Zone:

Master Plan Application Deposit $2242, Actual Cost + 20% Final Development Plan Application Deposit $2242, Actual Cost + 20% Planned Development Amendment: Deposit $1130, Actual Cost + 20% Development Agreement Preparation Actual Cost + 20%
ENGINEERING DIVISION:

Cost Recovery, Legal Services Actual Cost + 20%
Improvement Standards and Specifications Book $35
Map or Document Research (minimum 1 hour) Actual Cost + 20% Improvement Plans Review, City Staff 3% of value
Improvement Plans Review, Consultant Deposit 3% of value, Actual Cost + 20% Storm Water Quality Control Plan Review $738
Swimming Pool Permit $35
Encroachment Permit 3% of value ( $259 minimum)
Encroachment Permit for Public Utilities (AT&T, PG&E, MID, Comcast, etc.) $286 Inspections for Public Utilities Company Permits, City Staff $134 per hour Inspections for Public Utilities Company Permits, Consultant Actual Cost + 20% Well Construction (except drinking water) $286
Well Abandonment $286
Encroachment Permit for Driveway Approach Replacement $286 Encroachment Permit for Sidewalk Replacement $286
Encroachment Permit for Utilities Installation (Street Cuts) $385 Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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*Trench Deposit, Single Utility (held for 12 months) Deposit $2,485 + Actual Cost *Trench Deposit, Multi Utilities (12 months from excavation of last trench) Deposit $6,540 + Actual Cost *Trench deposits are not required for projects covered under a warranty bond On-Site Inspections 3% of value
Off-Site Inspections 3% of value
PUBLIC WORKS:

Administrative Fee 20% for all billable charges
Street Sweeper and Clean-Up Fee (minimum 2 hours) Actual Cost Barricade Rental $6 each-first day, $1 each-each day after Emergency Labor, Equipment and Materials Actual Cost
Hydrant Use or Construction Water (meter cost plus actual cost) Deposit $547 plus installation $46 plus $5
per thousand gallons of usage
Delinquent Back Flow Testing
$103 plus actual cost for repair parts if
needed
Water Problem (call out) Evaluation (minimum 2 hours) Actual Cost Red Tags (second and subsequent notices) Actual Cost
Commercial Recycling Actual Cost plus 11%
POLICE:

Copies .10 cents (per page)
Photos $15 per CD; $1 per page if printed
Unconsensual Franchise Tow Fee (Per Vehicle) $57
False Alarms (within a 12 month period at a single site) False alarms are not subject to CPI Adjustment False Alarms (first and second incident) $0
False Alarms (third thru fifth**) $62
False Alarms (sixth and subsequent**) $124
False Alarms (maximum fee per day) $310
**If both Police and Fire respond to false alarm, only one charge shall be assessed per incident
Domestic Fowl/Animal Permit $28
Cats/Dogs Redeemed (first occurrence) $64
Cats/Dogs Redeemed (second occurrence) $128
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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Animals to Pound, Requested by Owner $114
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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Clearance Letter $28
Dance Permit $34
Fingerprint Card $57
Bicycle License $6
Second Hand Dealer/Pawn Broker License (initial) $46
Second Hand Dealer/Pawn Broker License (renewal) $34
Alcohol Consumption Permit (City property, per event) $46 Solicitor Permit (non-profit) $23
Solicitor Permit (profit) $45
Handgun Dealer Permit (initial) $45
Handgun Dealer Permit (renewal) $28
Neighborhood Watch Program
Police Reports, Crime/Accident (first 4 pages) $23
Jail Booking County Cost plus 20%
Citation Sign-Off (for non-Atwater resident) $17
Stored Vehicle Release $259
Repossession Filing Fee (mandated by State Gov. Code 41612) $18 Concealed Weapon Permit (initial) $203
Concealed Weapon Permit (renewal) $156
Emergency Response (Gov. Code 53150-53158) Actual Cost plus 15% Amplified Sound Permit $46
Taxi Cab Permit (initial) $46
Taxi Cab Permit (renewal) $28
Tow Cab Franchise Fee $56
Abandoned Cart Fee $50 per cart, per pick-up
Code Enforcement Reinspection Fee $50
FIRE:
1,251 GPM (16 hour maximum) 1251-1500 $94/hour
1,501 GPM (16 hour maximum) 1501-2000 $96.50/hour
Pick-Up (16 hour maximum) $61/hour
Works Comp. Actual Cost
Administration (OES) Actual Cost
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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Annual Inspections and New Business Inspections
Low Hazard Inspection (businesses, industries, merchandise) Per Hour:

Occupancy types: A (<50 People), B, C, F-2, M, S-2, U
1 - 5,000 sq. ft. $115
First Re-Inspection $130
Second Re-Inspection $145
5,001 - 10,000 sq. ft. (first inspection) $125
First Re-Inspection $140
Second Re-Inspection $155
10,001 - 20,000 sq. ft. (first inspection) $135
First Re-Inspection $150
Second Re-Inspection $165
20,001 - 40,000 sq. ft. (first inspection) $165
First Re-Inspection $180
Second Re-Inspection $195
40,001 - 80,000 sq. ft. (first inspection) $175
First Re-Inspection $190
Second Re-Inspection $205
80,001 - 120,000 sq. ft. (first inspection) $185
First Re-Inspection $200
Second Re-Inspection $215
120,001 - 150,000 sq. ft. (first inspection) $245
First Re-Inspection $260
Second Re-Inspection $275
150,001 - 200,000 sq. ft. (first inspection) $305
First Re-Inspection $320
Second Re-Inspection $335
200,001+ sq. ft. (first inspection) $365
First Re-Inspection $380
Second Re-Inspection $395
Moderate-High Hazard Inspection (50+ gather, education facility, high fire area, hospitals, residential, storage) Per Hour:

Occupancy types: A (>50 People), E, F-1, H-1-5, I-1-3, I-4, L, R-1-4, S-1 1 - 5,000 sq. ft. (first inspection) $115
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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First Re-Inspection $130
Second Re-Inspection $140
5,001 - 10,000 sq. ft. (first inspection) $125
First Re-Inspection $140
Second Re-Inspection $155
10,001 - 20,000 sq. ft. (first inspection) $135
First Re-Inspection $150
Second Re-Inspection $165
20,001 - 40,000 sq. ft. (first inspection) $185
First Re-Inspection $200
Second Re-Inspection $215
40,001 - 80,000 sq. ft. (first inspection) $195
First Re-Inspection $210
Second Re-Inspection $225
80,001 - 120,000 sq. ft. (first inspection) $205
First Re-Inspection $220
Second Re-Inspection $235
120,001 - 150,000 sq. ft. (first inspection) $285
First Re-Inspection $300
Second Re-Inspection $315
150,001 - 200,000 sq. ft. (first inspection) $365
First Re-Inspection $380
Second Re-Inspection $395
200,001+ sq. ft. (first inspection) $445
First Re-Inspection $460
Second Re-Inspection $475
Other Inspections/Rates:

Inspections:

Christmas Tree Lots or Sale Areas at Car Sales $60
Board and Care Facilities (full time patient care, State mandated inspection, 7 - 50 occupants) $128
Board and Care Facilities (full time patient care, State mandated inspection, over 50 occupants) $207
Daycare Facilities (more than 6 children, State mandated inspection) $128 Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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Fire Safety Application Review $207
Fire Safety Plan Review $207
Fireworks and Pyrotechnics $300
Occupancy Permits $67
Penalty Charges (unauthorized occupancy) $140
Tents and Air-Supported Structures (per 200 sq. ft., except for camping) $113 Rates: $0
Hydrant Flow Data-Per Hydrant $264
Weed Abatement Contractors Cost plus 20%
Consultation $113
Fire Cause Investigation $113
Stand-by or Fire Watch $137
Operational Permits:

Tanks: Hazardous Material Storage, Installation/Removal $137 Aerosol Products Permit (retail storage, under exempt amounts per sq. ft.) $123 Aerosol Products Permit (warehouse and storage) $247
Aircraft Repair Hanger $123
Aircraft Refueling Vehicle (initial) $185
Aircraft Refueling Vehicle (renewal) $123
Asbestos Removal Permit $185
Automobile Wrecking Yard $185
Battery System $247
Bowling Pin or Alley Refinishing (initial) $247
Bowling Pin or Alley Refinishing (renewal) $195
Candles/Open Flame in Assembly Area (single use permit) $43 Candles/Open Flame in Assembly Area (on-going facility permit) $195 Carnivals and Fairs $139
Cellulose Nitrate Film $251
Cellulose Nitrate Storage $251
Combustible Fiber Storage $307
Combustible Material Storage $139
Compressed Gas, Store/Handle/Use (initial) $251
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

10 of 15
Compressed Gas, Store/Handle/Use (renewal) $139
Commercial Rubbish Handling Operation (initial) $195
Commercial Rubbish Handling Operation (renewal) $139
Cryogen Use, Plan Check/Install/Inspection/Use (initial) $387 Cryogen Use, Plan Check/Install/Inspection/Use (renewal) $155 Dry Cleaning Plants (initial) $251
Dry Cleaning Plants (renewal) $195
Dust Producing Operation (initial) $251
Dust Producing Operation (renewal) $195
Explosive or Blasting Agent (permit and 2 blasts) $195
Explosive or Blasting Agent (more than 2 blasts) $60
Fireworks Ground Display $139
Fireworks, Pyrotechnic Special Effects (theatrical/movies) $139 Fireworks, Aerial Display (includes ground display) $307 Flammable or Combustible Liquids $307
Retail Storage (under exempt amount per control area) $60 Pipeline, Operations/Excavation $139
Containers/Tanks (initial) $307
Containers/Tanks (renewal) $195
Underground Tanks $139
Tank Removal $195
Tank Vehicles (initial) $195
Tank Vehicles (renewal) $139
Fruit Ripening $139
Fumigation or Thermal Insecticides Fogging $139
Hazardous Materials, Retail Storage (under exempt amount per control area) $139 Hazardous Materials, Storage/Handle/Use (initial) $492
Hazardous Materials, Storage/Handle/Use (renewal) $195
Hazardous Production Materials $379
High Piled Combustible Stock (initial) $379
High Piled Combustible Stock (renewal) $251
LPG - Non Single Family Dwelling $251
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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LPG - Single Family Dwelling $139
Liquid or Gas Fueled Vehicles or Equipment in Assembly $139 Lumber Yards $195
Magnesium Working $251
Mall Covered $251
Motor Vehicle Fuel Dispensing Station $251
Motor Vehicle Refueling Unit $251
Open Fires (includes bonfires & burn permits) $60
Organic Coating (initial) $489
Organic Coating (renewal) $375
Ovens, Industrial Baking or Drying (initial) $195
Ovens, Industrial Baking or Drying (renewal) $139
Radioactive Materials (initial) $251
Radioactive Materials (renewal) $139
Refrigeration Equipment, Install/Operate (initial) $307 Refrigeration Equipment, Install/Operate (renewal) $195 Repair Garages $139
Special Use/Event Permit $139
Spraying or Dipping (initial) $364
Spraying or Dipping (renewal) $195
Tents/Canopy/Membrane Structures - Non High Fire Hazard Area (100 occupants) $139
Tents (all others) $364
Tire Storage $195
Wood Products $251
Hot Work and Cutting Operations (within occupancy and mobile) $195 Fireworks Stands/Booth Application Fee $168
Firework Stand/Storage/Display Inspection $128
Special Events Fire and Life Safety
Cost Recovery/Miscellaneous:
1,250-1500 GPM (16 hour maximum) $102
1,501-2000 GPM (16 hour maximum) $106
Pick-Up (16 hour maximum) $71
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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Works Comp. Actual Cost
Administration (OES) $0.18
Fire Reports $17
Street Spills $57 plus Actual Cost
False Alarms (within a 12 month period at a single site) False alarms are not subject to COLA False Alarms (first and second incident) $0
False Alarms (third thru fifth**) $62
False Alarms (sixth and subsequent**) $124
False Alarms (maximum fee per day) $310
**If both Police and Fire respond to false alarm, only one charge shall be assessed per incident.

PARKS, RECREATION & COMMUNITY EVENTS
Community Center, Multipurpose Room
Reservation and Cleaning Deposit $350
Cancellation Fee: Less than 10 Days of Rental Forfeit of all rental fees Cancellation Fee: More than 10 Days of Rental $175
Cancellation Fee: More than 30 Days of Rental $80
Rent: Private Organization (per hour) $100
Rent: Non-Profit/Senior Organization (per hour) $70
Facility Attendant, (per hour) $35
Community Center, Multi Purpose Room & Evelyn Chambers Senior Room Reservation and Cleaning Deposit $525
Cancellation Fee: Less than 10 Days of Rental Forfeit Deposit Cancellation Fee: More than 10 Days of Rental $175
Cancellation Fee: More than 30 Days of Rental $80
Rent: Private Organization (per hour) $140
Rent: Non-Profit/Senior Organization (per hour) $90
Facility Attendant, (per hour) $35
Community Center, Evelyn Chambers Senior Room
Reservation and Cleaning Deposit $210
Cancellation Fee: Less than 10 Days of Rental Forfeit of all rental fees Cancellation Fee: More than 10 Days of Rental $105
Cancellation Fee: More than 30 Days of Rental $80
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

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Rent: Private Organization (per hour) $75
Rent: Non-Profit/Senior Organization (per hour) $40
Facility Attendant, (per hour) $35
Community Center, Jessie Frago or Andy Longinotti Meeting Rooms Reservation and Cleaning Deposit $210
Cancellation Fee: Less than 10 Days of Rental Forfeit of all rental fees Cancellation Fee: More than 10 Days of Rental $105
Cancellation Fee: More than 30 Days of Rental $80
Rent: Private Organization (per hour) $65
Rent: Non-Profit/Senior Organization (per hour) $40
Facility Attendant, (per hour) $35
Community Center, Kitchen
Reservation and Cleaning Deposit $210
Cancellation Fee: Less than 10 Days of Rental Forfeit of all rental fees Cancellation Fee: More than 10 Days of Rental $105
Cancellation Fee: More than 30 Days of Rental $80
Rent: Private Organization (per hour) $40
Rent: Non-Profit/Senior Organization (per hour) $35
Table & Chair Fees:

Table & Chair Set Up and Usage Fee $125
Table & Chair Set up and Usage Fee for Senior Citizen Organization $75 Castle Youth Center
Birthday Party (2 hours) gym, game room & activity area $175 Gym Rental (per hour) $60
Facility Attendant, (per hour) $35
Veterans Park Pavilion
Reservation and Cleaning Deposit $200
Cancellation Fee: Less than 10 Days of Rental Forfeit of all rental fees Cancellation Fee: More than 10 Days of Rental $75
Cancellation Fee: More than 30 Days of Rental $80
Atwater Resident Rental Fee with Kitchen $250
Senior/Civic/Schools/Non-Profit Organization with Kitchen $200 Senior Citizen Groups with Kitchen $175
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

14 of 15
Facility Attendant, (per hour) $35
Bloss Grounds
Deposit $350
Private Party (2 hour minimum) $80 per hour
Non-Profit / Senior Group (2 hour minimum) $40 per hour Facility Attendant, (per hour) $35
Photograpy Session (2 hour minimum) $30 per hour
Bloss Library Museum
Private Usage $50 per hour
Non-Profit / Senior Group No Charge
Facility Attendant, (per hour) $35
Field Rentals
Osborn and Miyake Ball Field Deposit $210
Osborn and Miyake Ball Field Rental (per hour) $35
Osborn and Miyake Ball Field Rental with Lights (per hour) $40 Osborn and Miyake Ball Field Tournament without Lights (per field per day) $145 Osborn and Miyake Ball Field Tournament Field Preps (per prep per field per day) $75
Veterans Park Football Field Deposit $210
Veterans Park Football / Soccer Field, Youth Teams (per day) $125 Veterans Park Football Field, Adult Teams (per day) $150 Memorial Ball Field Deposit $200
Memorial Ball Field (per game) $75
Memorial Ball Field Prep $75
Memorial Ball Field Light Usage (per hour) $40
Joan Faul Soccer Field Deposit $210
Joan Faul Soccer Field 1 (per day) $100
Joan Faul Soccer Field 2 (per day) $100
Joan Faul Soccer Fields 1 & 2 (per day) $175
Youth Recreation Programs Resident Non Resident
Osborn Park Tennis Court (per key for one year Pro-Rated) $80 $100 Youth Basketball (co-ed, boys and girls, grades K-12) (per player) $80 $105 Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

15 of 15
Youth Indoor Soccer (per player) $75 $95
Summer Drop-in Program - Per Week
Full Day - Per Week $90 $115
Youth Flag Football (per player) $75 $95
Youth Volleyball (per player) $85 $105
Summer Youth Camp (per camp) $50 $70
Adult Recreation Programs
Men's Spring Softball $550 $575
Men's Summer Softball $550 $575
Men's Fall Softball $550 $575
Coed Spring Softball $550 $575
Coed Summer Softball $550 $575
Coed Fall Softball $550 $575
Coed Winter Volleyball $425 $450
Coed Summer Volleyball $425 $450
Men's Volleyball $425 $450
Women's Volleyball $425 $450
Men's Summer Basketball League $650 $675
Men's Winter Basketball League $650 $675
Other Recreation Programs
Misc. Recreation Classes & Events $10 - $50 $10 - $50
Vendor Fair Booth Rental (12x12) $100
Miscellaneous Fee Schedule
Amended June 27, 2022 CPI % increase for FY 22/23
EXHIBIT "A" 8.338%
Proposed
MISCELLANEOUS FEES: 2022-23

CITY COUNCIL

AGENDA REPORT
MEETING DATE: December 12, 2022
TO: Mayor and City Council
FROM: Greg Thompson, Community Development Director
PREPARED BY: Christina Thurman, Executive Assistant
SUBJECT: Waiving the first reading, by title only, and introducing an ordinance Approving Zoning Text Amendment No. 22-18-0100 Repealing and Replacing Chapter 17.28 of the Atwater
Municipal Code regarding Accessory and Junior Accessory Dwelling Units, and Determining the Ordinance to be Exempt from CEQA (Community Development Director Thompson)

RECOMMENDED COUNCIL ACTION
Open the public hearing and take any testimony;
Close the public hearing;
Motion to waive the first reading and introduce Ordinance No. CS 1052 repealing and replacing Chapter 17.28 of the Atwater Municipal Code regarding Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs). This Ordinance will impose new City regulations on the permitting, development, and construction of ADUs and JADUs in compliance with the provisions of Government Code sections 65852.2 and 65852.22, as amended by recently approved legislation that takes effect January 1, 2023.

Motion to approve staff's recommendation as presented.

I. BACKGROUND/ANALYSIS:

BACKGROUND:

In 2019, legislation was passed that amended the regulation requirements for ADUs and JADUs. Among these were Senate Bill 13 and Assembly Bills 68, 881, 587, 670, and 671. The intent of these statutory changes was to reduce barriers, streamline approval processes, and increase development and availability of ADUs and JADUs.

The state legislation amended regulations related to parking requirements, unit size, site coverage, setbacks, and other development standards.

In 2020, Assembly Bill 3182 amended Government Code Section 65852.2 to expand

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

Agenda Report - Page 2
the scenarios under which the City must allow certain ADUs and JADUs with only a building permit instead of use permit or other discretionary entitlements. In September 2021, Assembly Bill 345 clarified that cities must allow the separate sale or conveyance of certain ADUs that satisfy the conditions set forth in Government Code section 65852.26. Such conditions include, among other things, that the ADU or primary dwelling was constructed by a qualified nonprofit and the ADU is sold to a qualified lowincome buyer.

In 2022, the California Legislature approved, and the Governor signed into law, a new bill (SB 897) that further amends Government Code sections 65852.2 and 65852.22 (“New Amendments”). Among other things, the New Amendments:
 Require the City to allow certain ADUs to be as tall as 18 or 25 feet, depending on the situation;
 Require the City’s front setback requirements to yield for certain ADUs; and  Require the City to justify a denial with a full set of detailed comments describing the deficiencies in the application and explaining how to remedy them.

SB 897 takes effect January 1, 2023. If the City’s ADU ordinance does not comply with requirements of SB 897 by that date, the City’s entire existing ADU ordinance becomes null and void as a matter of law, and the City will have to allow ADUs with no local regulation except for the few requirements in the state ADU law itself.

Currently, the City of Atwater Municipal Code contains Chapter 17.28, “Second Units in a Single-family and Agricultural Zones,” which was adopted in 1983. With the passing of the new laws, this chapter has become inconsistent with state legislation. As directed by the Housing Element, the City has reviewed the existing zoning ordinance and drafted a new ordinance for accessory dwelling units. This draft ordinance would repeal the existing Chapter of 17.28 that is no longer in compliance with State law and replace it with a new Chapter 17.28, so that the City may conduct as much local review and oversight as it is entitled to under state law.

Pursuant to Government Code Section 65852.2 (h)(1), the City will be required to submit the adopted ADU ordinance to the California Department of Housing and Community Development (HCD) for review within 60 days of the adoption by City Council.

ANALYSIS:

Pursuant to Government Code Section 65852.2(a)(1)(C), the draft ordinance is considered to be consistent with the City’s general plan and zoning ordinance as it does not exceed the allowable densities for each designation and accessory dwelling units are a residential use.

Furthermore, the draft ordinance is determined to be in conformance with the City of

Agenda Report - Page 3

Atwater’s 2014-2023 Housing Element Update which was adopted as part of the City’s General Plan in May of 2017, and supplemented and certified by the State in 2019.

This element sets goals and priorities of community housing needs based on the Regional Housing Needs Assessment (RHNA).

Housing Element Goal H-6 seeks to “minimize the impact of governmental constraints on housing construction.” Policy H-6.1. established the City would review the Zoning Ordinance to identify and remove potential constraints to the development of a range of housing for all income levels and needs. City staff has reviewed the Zoning Ordinance and offers the draft ordinance regarding ADUs and JADUs to help meet the goal of minimizing constraints and streamlining processing for housing construction. ADUs and JADUs tend to be utilized by a range of individuals and income levels including seniors, single parents, small families, and young individuals, and making their construction and use more accessible will provide City-wide housing benefits.

Additionally, the Housing Element indicates that the City’s Zoning Ordinance regulations for second units, also known as accessory dwelling units, must be amended to comply with State laws. Specifically, Implementation Program H-6.a, “Zoning Ordinance Amendments,” specifies that the City must review the Zoning Ordinance to allow second units as a permitted use in districts allowing single-family residences as required by Govt Code 65852.150. This draft ordinance for establishing new regulations would complete this program of the Housing Element.

II. FISCAL IMPACTS:

No negative fiscal impacts are anticipated with the approval of this project, as existing Community Development staff will be handling ADU/JADU application reviews. This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

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

IV. EXISTING POLICY:

This ordinance would repeal and replace the current Chapter 17.28 ,“Second Units in a Single Family and Agricultural Zones,” with new language governing ADUs and JADUs.

Specifically, the main updates to the Code will be as follows:
 Incorporate state law definitions for ADUs, JADUs, accessory structures, and living area, among others.
 Identify the types of permits required based on the type of ADU or JADU to be constructed.
 Set forth the process and timing for the City’s consideration of a complete application so that applicants are aware of what to expect.  Identify the zoning requirements; safety obligations, rental, owner occupancy,

Agenda Report - Page 4

conveyance limitations; septic system requirements; deed restriction obligations; and notice of construction requirements for ADU and JADU projects.  List the specific requirements applicable to ADUs that meet certain state standards, including setback, height, parking, architectural, and landscape requirements.
 Set forth the fees that, including impact fees, may or may not be charged to specific types of ADU or JADU construction.
 Require a percolation test for ADUs or JADUs connecting to an onsite wastewater-treatment system.

Impose certain landscape and architecture obligations within the confines of the governing state laws.

This ordinance is consistent with the goals and polices of the General Plan and does not conflict with any other portion of the Atwater Municipal Code.

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:

This item has been routed and reviewed by all departments.

VII. PUBLIC PARTICIPATION:

The public hearing was adequately noticed and advertised for the regularly scheduled Planning Commission hearing on September 21, 2022. The public hearing was adequately noticed and advertised for the regularly scheduled City Council meeting on December 12, 2022.

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

VIII. ENVIRONMENTAL REVIEW:

Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State’s ADU law.

IX. STEPS FOLLOWING APPROVAL:

The second reading and adoption of the ordinance will be scheduled for the next regular

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City Council meeting.

Submitted by:

Greg Thompson, Community Development Director
Approved by:

Lori Waterman, City Manager
Attachments:

1. Atwater ADU Ordinance FINAL

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ORDINANCE NO. 1052

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ATWATER REPEALING AND REPLACING CHAPTER 17.28

OF THE ATWATER MUNICIPAL CODE REGARDING

ACCESSORY AND JUNIOR ACCESSORY DWELLING

UNITS, AND DETERMINING THE ORDINANCE TO BE

EXEMPT FROM CEQA
WHEREAS, the City of Atwater, California (“City”) is a municipal corporation, duly organized under the constitution and the laws of the State of California; and WHEREAS, the Planning and Zoning Law authorizes local agencies to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and
WHEREAS, in recent years, the California Legislature has approved, and the Governor has signed into law, a number of bills that, among other things, amended Government Code sections 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and
WHEREAS, in September of 2020, the California Legislature approved, and the Governor signed into law, Assembly Bill 3182 (“AB 3182”); and WHEREAS, in 2022, the California Legislature approved, and the Governor signed into law, a new bill (SB 897) that further amends Government Code sections 65852.2 and 65852.22; and
WHEREAS, SB 897 takes effect January 1, 2023, and if the City’s ADU ordinance does not comply with the requirements imposed by SB 897 by that date, the City’s entire existing ADU ordinance becomes null and void as a matter of law; and WHEREAS, the approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values, personal privacy, and fire safety;

CITY COUNCIL
OF THE

CITY OF ATWATER

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and
WHEREAS, the City Council has reviewed and considered the public testimony and agenda reports prepared in connection with this ordinance, including the policy considerations discussed therein, and the consideration and recommendation by the City’s Planning Commission; and
WHEREAS, in accordance with the California Environmental Quality Act (Pub.

Resources Code, § 21000 et seq.) (“CEQA”) and the State CEQA Guidelines (Cal.

Code Regs., tit. 14, § 15000 et seq.), the City has determined that the revisions to the [City] Municipal Code are exempt from environmental review; and WHEREAS, the City desires to update the Atwater Municipal Code (“AMC”) for the construction of ADUs and JADUs to comply with the amended provisions of Government Code sections 65852.2 and 65852.22; and
WHEREAS, in light of the foregoing, this Ordinance amends the AMC by: (1) repealing the City’s existing second unit regulations set forth in Chapter 17.28 (Second Units in a Single-Family and Agricultural Zones) and (2) replacing it with a new Chapter

17.28 entitled “Accessory Dwelling Units;” and
WHEREAS, on September 7, 2022, the City gave public notice of a Planning Commission public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on September 21, 2022, the Planning Commission held a duly- noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning this Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on November 23, 2022, the City gave public notice of a City Council public hearing to be held to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on December 12, 2022, the City Council held a duly-noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, the City Council of the City of Atwater does hereby ordain as follows:

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SECTION 1. Recitals. The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 2. CEQA. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State’s ADU law.

SECTION 3. General Plan. This Ordinance is, as a matter of law, consistent with the City’s General Plan pursuant to Government Code Section 65852.2(a)(1)(C).

SECTION 4. Repeal. Chapter 17.28 (Second Units in a Single-Family and Agricultural Zones) of the Atwater Municipal Code is hereby repealed in its entirety and is of no further force or effect.

SECTION 5. Replace. Chapter 17.28 (Accessory Dwelling Units) is hereby added to the Atwater Municipal Code and shall read in its entirety as set forth in Exhibit A, attached hereto and incorporated herein by this reference.

SECTION 6. Publication; Effective Date. Within 15 days from and after adoption, this Ordinance, or a summary thereof, shall be published once in a newspaper of general circulation printed and published in Merced County and circulated in Atwater, in accordance with California Government Code Section 36933. This Ordinance shall take effect and be enforced 30 days after its adoption.

SECTION 7. Severability. If any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable.

This City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed, and the balance of the Ordinance be enforced.

SECTION 8. Record of Proceedings. The custodian of records for this Ordinance is City Clerk and the records compromising the administrative record for this Ordinance are located at Atwater City Hall, 750 Bellevue Road, Atwater, CA 95301.

SECTION 9. Submittal to HCD. The City Clerk shall submit a copy of this Ordinance to the Department of Housing and Community Development within 60 days after adoption.

PASSED AND ADOPTED by the City Council of the City of Atwater on the day of , 20 , by the following vote:

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INTRODUCED:

ADOPTED:

AYES:

NOES:

ABSENT:

APPROVED:

MIKE NELSON, MAYOR
ATTEST:

KORY BILLINGS, CITY CLERK

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EXHIBIT “A"
Chapter 17.28 – Accessory Dwelling Units
Section 17.28.010 - Accessory Dwelling Units
A. Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and 65852.22.

B. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:

1. Deemed to be inconsistent with the city’s general plan and zoning designation for the lot on which the ADU or JADU is located.

2. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.

3. Considered in the application of any local ordinance, policy, or program to limit residential growth.

4. Required to correct a nonconforming zoning condition, as defined in subsection C.7 below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12.

C. Definitions. As used in this section, terms are defined as follows:

1. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
a. An efficiency unit, as defined by section 17958.1 of the California Health and Safety Code; and
b. A manufactured home, as defined by section 18007 of the California Health and Safety Code.

2. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

3. “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.

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4. “Director” means the Community Development Director for the City of Atwater.

5. “Efficiency kitchen” means a kitchen that includes each of the following:
a. A cooking facility with appliances.
b. A food preparation counter or counters that total at least 15 square feet in area.
c. Food storage cabinets that total at least 30 square feet of shelf space.

6. “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies all of the following:
a. It is no more than 500 square feet in size.
b. It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the singlefamily structure. c. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure. d. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling. e. includes an efficiency kitchen, as defined in subsection C.4 above.

7. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

8. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.

9. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.

10. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

11. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

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12. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

D. Approvals. The following approvals apply to ADUs and JADUs under this section:

1. Building-permit Only. If an ADU or JADU complies with each of the general requirements in subsection E. (General ADU and JADU Requirements) below, it is allowed with only a building permit in the following scenarios:
a. Converted on Single-family Lot: One ADU as described in this subsection D.1.a and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:
(i) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and
(ii) Has exterior access that is independent of that for the singlefamily dwelling; and (iii) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.
(iv) The JADU complies with the requirements of Government Code Section 65852.22.
b. Limited Detached on Single-family Lot: One detached, newconstruction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection D.1.a above), if the detached ADU satisfies each of the following limitations:
(i) The side- and rear-yard setbacks are at least four feet. (ii) The total floor area is 800 square feet or smaller. (iii) The peak height above grade does not exceed the applicable height limit in subsection E.2. below.
c. Converted on Multifamily Lot: One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this

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subsection D.1.c, at least one converted ADU is allowed within an existing multifamily dwelling, up to a quantity equal to 25 percent of the existing multifamily dwelling units.
d. Limited Detached on Multifamily Lot: No more than two detached ADUs on a lot that has an existing or proposed multifamily dwelling if each detached ADU satisfies both of the following limitations:
(i) The side- and rear-yard setbacks are at least four feet. If the existing multifamily dwelling has a rear or side yard setback of less than four feet, the city will not require any modification to the multifamily dwelling as a condition of approving the ADU. (ii) The peak height above grade does not exceed the applicable height limit provided in subsection E.2. below.

2. ADU Permit.
a. Except as allowed under subsection D.1 above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in subsections E. (General ADU and JADU Requirements) and F. (Specific ADU Requirements) below. b. The City may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the City’s ADU ordinance. The ADU permit processing fee is set by resolution of the City Council.

3. Process and Timing.
a. A permit application to create an ADU or JADU is considered and approved ministerially, without discretionary review or a hearing. b. The City must approve or deny an application to create an ADU or JADU within 60 days from the date that the City receives a completed application. If the City has not approved or denied the completed application within 60 days, the application is deemed approved unless either:
(i) The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or (ii) When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the city may delay acting on the permit application for the ADU or JADU until the city acts on the permit application to create the new single-family or multifamily dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing.

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c. If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection D.3.b., above. d. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.

E. General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that are approved under subsections D.1 or D.2 above:

1. Zoning.
a. An ADU or JADU subject only to a building permit under subsection D.1 above may be created on a lot in a residential or mixed-use zone.
b. An ADU or JADU subject to an ADU permit under subsection D.2 above may be created on a lot that is zoned to allow single-family dwelling residential use or multifamily dwelling residential use.

2. Height.
a. Except as otherwise provided by subsections E.2.b. and E.2.c., below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height.
b. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.
c. A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.
d. An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower.

Notwithstanding the foregoing, ADUs subject to this subsection E.2.d. may not exceed two stories.

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e. For purposes of this subsection E.2., height is measured above existing legal grade to the peak of the structure.

3. Fire Sprinklers.
a. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.
b. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.

4. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created.

5. No Separate Conveyance. An ADU or JADU may be rented, but, except as otherwise provided in Government Code Section 65852.26, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot).

6. Septic System. If the ADU or JADU will connect to an onsite wastewatertreatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.

7. Owner Occupancy.
a. An ADU that is permitted after January 1, 2020, but before January 1, 2025, is not subject to any owner-occupancy requirement. b. Unless applicable law requires otherwise, all ADUs that are permitted on or after January 1, 2025 are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property as the person’s legal domicile and permanent residence.
c. As required by state law, all JADUs are subject to an owneroccupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement in this subsection E.7.c. does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.

8. Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Community Development Department. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by

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the City and must provide that:
a. Except as otherwise provided in Government Code Section 65852.26, the ADU or JADU may not be sold separately from the primary dwelling.
b. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code. e. The deed restriction is enforceable by the director or his or her designee for the benefit of the city. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the city is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.

9. Income Reporting. In order to facilitate the city’s obligation to identify adequate sites for housing in accordance with Government Code sections 65583.1 and 65852.2, the following requirements must be satisfied:
a. With the building-permit application, the applicant must provide the city with an estimate of the projected annualized rent that will be charged for the ADU or JADU.
b. Within 90 days after each yearly anniversary of the issuance of the building permit, the owner must report the actual rent charged for the ADU or JADU during the prior year. If the city does not receive the report within the 90-day period, the owner is in violation of this Code, and the city may send the owner a notice of violation and allow the owner another 30 days to submit the report. If the owner fails to submit the report within the 30-day period, the city may enforce this provision in accordance with applicable law.

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10. Building & Safety.
a. Must comply with building code. Subject to subsection E.10.b., below, all ADUs and JADUs must comply with all local building code requirements.
b. No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code, unless the building official or Code Enforcement Division officer makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection E.10.b. prevents the city from changing the occupancy code of a space that was uninhabitable space or that was only permitted for nonresidential use and was subsequently converted for residential use in accordance with this section.

F. Specific ADU Requirements. The following requirements apply only to ADUs that require an ADU permit under subsection D.2 above.

1. Maximum Size.
a. The maximum size of a detached or attached ADU subject to this subsection F. is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms. b. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.
c. Application of other development standards in this subsection F., such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection F.1.b above or of an FAR, front setback, lot coverage limit, or open- space requirement may require the ADU to be less than 800 square feet.

2. Floor Area Ratio (FAR). No ADU subject to this subsection F. may cause the total FAR of the lot to exceed 45 percent, subject to subsection (F)(1)(C) above.

3. Setbacks.
a. An ADU that is subject to this subsection F. must conform to a 25- foot front-yard setback, or 65 feet if the ADU abuts any of the major streets specified in Section 17.12.110 of this Code, subject to subsection F.1.c. above.
b. An ADU that is subject to this subsection F. must conform to 4-foot side- and rear-yard setbacks.

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c. No setback is required for an ADU that is subject to this subsection F. if the ADU is constructed in the same location and to the same dimensions as an existing structure.

4. Lot Coverage. No ADU subject to this subsection F. may cause the total lot coverage of the lot to exceed 50 percent, subject to subsection F.1.c above.

5. Minimum Open Space. No ADU subject to this subsection F. may cause the total percentage of open space of the lot to fall below 50 percent, subject to subsection F.1.c above.

6. Passageway. No passageway, as defined by subsection C.9 above, is required for an ADU.

7. Parking.
a. Generally. One off-street parking space is required for each ADU.

The parking space may be provided in setback areas or as tandem parking, as defined by subsection C.12 above.
b. Exceptions. No parking under subsection F.7.a is required in the following situations:
(i) The ADU is located within one-half mile walking distance of public transit, as defined in subsection C.11 above.
(ii) The ADU is located within an architecturally and historically significant historic district.
(iii) The ADU is part of the proposed or existing primary residence or an accessory structure under subsection D.1.a above. (iv) When on-street parking permits are required but not offered to the occupant of the ADU.
(v) When there is an established car share vehicle stop located within one block of the ADU.
(vi) When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections F.7.b.(i) through Error! Reference source not found..
c. No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced.

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8. Architectural Requirements.
a. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling.
b. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.
c. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
d. The ADU must have an independent exterior entrance, apart from that of the primary dwelling. The ADU entrance must be located on the side or rear building façade, not facing a public-right-of-way. e. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet.
f. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight.
g. All windows and doors in an ADU are less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.

9. Landscape Requirements. Evergreen landscape screening must be planted and maintained between the ADU and adjacent parcels as follows:
a. At least one 15-gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one 24” box size plant shall be provided for every ten linear feet of exterior wall. b. Plant specimens must be at least six feet tall when installed. As an alternative, a solid fence of at least 6 feet in height may be installed. c. All landscaping must be drought-tolerant.
d. All landscaping must be from the city’s approved plant list.

10. Historical Protections. An ADU that is on or within 600 feet of real property that is listed in the California Register of Historic Resources must be located so as to not be visible from any public right-of-way.

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G. Fees. The following requirements apply to all ADUs and JADUs that are approved under subsections D.1 or D.2 above.

1. Impact Fees.
a. No impact fee is required for an ADU or JADU that is less than 750 square feet in size. For purposes of this subsection G.1, “impact fee” means a “fee” under the Mitigation Fee Act (Gov. Code
§ 66000(b)) and a fee under the Quimby Act (Gov. Code § 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.
b. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.)

2. Utility Fees.
a. If an ADU or JADU is constructed with a new single-family home, a separate utility connection directly between the ADU or JADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required.
b. Except as described in subsection G.2.a, converted ADUs and JADUs on a single-family lot that are created under subsection D.1.a above are not required to have a new or separate utility connection directly between the ADU or JADU and the utility. Nor is a connection fee or capacity charge required.
c. Except as described in subsection G.2.a, all ADUs and JADUs that are not covered by subsection G.2.b require a new, separate utility connection directly between the ADU or JADU and the utility. (i) The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU or JADU, based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system.
(ii) The portion of the fee or charge that is charged by the City may not exceed the reasonable cost of providing this service.

H. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.

1. Generally. The city will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted

83744.00001\35008581.1
structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.

2. Unpermitted ADUs constructed before 2018.
a. Permit to Legalize. As required by state law, the city may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if denial is based on either of the following grounds:
(i) The ADU violates applicable building standards, or
(ii) The ADU does not comply with the state ADU law
(Government Code section 65852.2) or this ADU ordinance (Chapter 17.28).
b. Exceptions:
(i) Notwithstanding subsection Error! Reference source not found., the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1,
2018, if the City makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the structure.
(ii) Subsection Error! Reference source not found. does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code section 17920.3.

I. Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that does not conform to the objective standards set forth in subsections A. through G. of this section may be allowed by the City with a conditional use permit, in accordance with the other provisions of this title.

CITY COUNCIL

AGENDA REPORT
MEETING DATE: December 12, 2022
TO: Mayor and City Council
FROM: Greg Thompson, Community Development Director
PREPARED BY: Sam Rashe, Senior Planner
SUBJECT: Appeal of Planning Commission non-approval on November 30, 2022 regarding Bk Industries, Inc.'s application for Conditional Use Permit, Site Plan, Architectural Review and Zone Variance; Project Description: Electronic Message
Board located at the corner of First Street and Shaffer Road, Atwater north of (APN: 003-211-002) (Community Development Director Thompson)

RECOMMENDED COUNCIL ACTION
Open the public hearing and take any testimony given; and Adopt the resolution approving the appeal of the Planning Commission's non-approval of BK Industries, Inc.'s Site Plan No. 22-22-100, Conditional Use Permit No. 22-22- 0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400 for the Electronic Message Board located at the corner of First Street and Shaffer Road, Atwater north of (APN: 003-211-002);or
Motion to approve staff's recommendation as presented.

I. BACKGROUND/ANALYSIS:

BACKGROUND:

On December 1, 2022, an appeal letter was submitted by Brad Kessler, the owner of BK Industries Inc. The appeal letter provided by Mr. Kessler indicated he wished to appeal the decision rendered by the Planning Commission regarding Resolution No. 0215-22, Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review No. 22-22-0300, and Zone Variance No. 22-22-0400 for an Electronic Message Board.

On November 30, 2022, during a Special Meeting, the Planning Commission held a public hearing regarding Site Plan No. 22-22-100, Conditional Use Permit No. 22-22- 0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400 to allow the construction of a freestanding electronic message board. The electronic message board would be approximately thirty-seven feet and seven inches in height, have an envelope of eighty-five square feet and consist of three pillars. The electronic message board will have three sides with each side containing an electronic message board

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

Agenda Report - Page 2
nineteen feet from the finished ground surface and approximately no higher than thirtythree feet. The two electronic message boards facing northwest and northeast will be approximately 104 square feet and the electronic message board facing south will be approximately 126.

During the public hearing, three attendees spoke in favor of the project and one spoke against the project. Commissioner Sanders moved to approve the finding that the project is categorically exempt under California Environmental Quality Act (CEQA) guideline section 15303, Class 3 “New Construction or Conversion of Small Structures.

Commissioner Daugherty seconded the motion. The motion passed with three ayes from commissioners Sanders, Daugherty, Kadach, one no from Commissioner Borgwardt, and one commissioner who recused themselves. Commissioner Sanders then made a motion to adopt the resolution approving the Site Plan, Conditional Use Permit, Architectural Review, and Zone Variance. The motion was seconded by Commissioner Daugherty. The motion failed with two ayes from Commissioners Daugherty and Sanders, two noes from Commissioners Borgwardt and Kadach, and Commissioner Nelson recused himself. Technically, since the motion failed and there was a deadlock vote, it was non-action by the Commission and triggered the need for this Appeal.

The subject property is located at the corner of First Street and Shaffer Road, Atwater north of APN 003-211-002, and set off Bellevue Road by approximately 70 feet at a very unique five-point intersection. The parcel is approximately 2,041 square feet and is best described as triangularly shaped. Due to the exceptional narrowness and unusual shape of the property, enforcement of the guidelines outlined in chapter 17.38 of the Atwater Municipal Code (AMC) would cause undue hardship for many proposed projects on the subject parcel.

ANALYSIS:

The applicant BK Industries, Inc is requesting to construct a freestanding electronic message board located on the south intersection of First Street and Shaffer Road. The electronic message board, including supporting structure, will be approximately thirtyseven feet and seven inches in height have an envelope of eighty-five square feet and consist of three pillars. The electronic message board will be constructed of metal and have three sides with each side containing an electronic message board nineteen feet from the finished ground surface and approximately no higher than thirty-three feet. The two electronic message boards facing northwest and northeast will be approximately 104 square feet and the electronic message board facing south will be approximately 126 square feet. The pillar located on the southwest side of the parcel will have a setback of two feet three inches from the property line that runs parallel to First Street.

The pillar located on the northern part of the parcel will have a setback of ten feet and four inches from the property line that runs parallel to First Street and a setback of nine feet seven inches from the property line that runs parallel to Shaffer Road. The pillar located on the east side of the parcel will have a setback of two feet two inches from the property line that runs parallel to Shaffer Road (refer to figure 1). The general

Agenda Report - Page 3
character and aesthetic of the structure will match and complement the recently constructed Clock Tower on Broadway Avenue and Fifth Street. The electronic message boards will be used to provide advertising opportunities to the local business market as well as provide a place for creating awareness for community events.

The project is located at the corner of First Street and Shaffer Road, just north of APN 003-211-002. The subject property is zoned C-G (General Commercial District) has a Land Use Designation of Commercial and per the Atwater General Plan is located in a scenic corridor. Per the Atwater Municipal Code (AMC) 17.69.500 (A)(2) an electronic message board shall be subject to the approval of a Conditional Use Permit (CUP) and require the following findings.

1. The Electronic Message Board is consistent with Sections 17.69.500(A),

17.69.050(Q) and 17.69.120(H) of this Code.

2. The Electronic Message Board will be located adjacent to an established arterial or collector roadway as designated in the City's General Plan.

3. The orientation of the face of the Electronic Message Board is not detrimental to the character of development in the immediate neighborhood and does not pose a safety risk to motorists or pedestrians.

4. The Electronic Message Board is consistent with the City's General Plan, the City's Zoning Code, City Municipal Code and all other applicable codes and regulations.

AMC 17.69.500(A) provides guidelines for several different types of signage such as monument signs, Freestanding Reader Board, Electronic Message Boards, and freestanding signs to name a few for example. The majority of the municipal code that provides guidance regarding the Freestanding Electric Message board will be located in

17.69.500 (A)(2) which is identified above and AMC 17.69.500(A)(5). AMC

17.69.500(A)(5) states all monument signs, freestanding signs, and directional signs shall be placed within the landscaped area to be equipped with a seven-day automatic irrigation system, which is one of the conditions required by the applicant.

17.69.050 defines Electronic Message as a Board, which states “A sign capable of displaying words, symbols, figures, or images that can be electronically or mechanically changed by remote or automatic means. The duration of a message shall be displayed for a period no less than 20 seconds. The transition from one message to another shall be instantaneous as perceived from the human eye and each electronic message board message shall be complete in itself and shall not continue by fading, scrolling, or other manner to a subsequent message. No electronic message board shall display animated messages, including flashing, blinking, fading, rolling, dissolving, or any other effect that gives the appearance of movement. No electronic message board shall include or emit an audio message, which is also included as part of the conditions of approval and as a result the project meets the requirements outlined in item number one of section.

Agenda Report - Page 4
The project site is located on Shaffer Road and First Street, which per the City of Atwater General Plan are designated as either a collector or arterial roadway.

As previously stated, the project is located at the corner of Shaffer Road and First Street just north of APN 003-211-002. The location of the project site is also commonly known as the Five Corners intersection. Five Corners intersects with Shaffer Road, First Street, and Bellevue Road. Located on the northeast corner of Shaffer Road and Bellevue Road is a freestanding sign. Approximately 500 feet east of Bellevue Road from Five Corners are two more free-standing signs and one monument sign. As a result of the existing signage located in the vicinity of Five Corners, the addition of the Electronic Message Board would not be detrimental to the character of development in the immediate neighborhood. The closest pedestrian walkway is approximately thirtyseven feet north of the project site and is equipped with traffic lights to control both vehicular traffic and pedestrian traffic along with the conditions of approval providing safety measures for pedestrians and motorists.

The land use designation to the north and south of Bellevue Road at the Five Corners intersection has a land use designation of Commercial. According to the Atwater General Plan, the land use designation is intended to accommodate a wider range of commercial activities. The Electronic Message Board will be used to provide advertising opportunities to local businesses and notify the public of community events and, as a result, the project is consistent with the Atwater General Plan. As previously stated, the project site is located in a General Commercial zone and is in a scenic corridor area.

According to AMC 17.69.560(A), a free-standing sign located in a scenic corridor shall not exceed eight feet in height. Also, per AMC section 17.69.160 Scenic Corridors, freestanding signs are to be no closer than ten feet to the property line or 18 feet to the curb face and shall be of a monument style, mounted on a solid base, and not to exceed eight feet in height measured from the finished grade to the top of the sign.

However, as stated in the background section of this report the subject property has been identified as having an unusual shape and exceptional narrowness. Per section

17.74.010 it states that a “variance is to allow variation from the strict application of the terms of this chapter where, by reason of the exceptional narrowness, shallowness, or unusual shape of a specific piece of property”; and, that the following conditions are found:

1. That a hardship peculiar to the property and not created by any act of the owner exists. In this context, personal, family, or financial difficulties, loss of prospective profits, and neighboring violations are not hardships justifying a variance.

Further, a previous variance can never have set a precedent, for each case must be considered only on its individual merits;

2. That such variance is necessary for the preservation and enjoyment of substantial property rights possessed by other properties in the same zoning district and in the same vicinity, and that a variance, if granted, would not constitute a special privilege of the recipient not enjoyed by his neighbors;

Agenda Report - Page 5

3. That the authorizing of such variance shall not be of substantial detriment to adjacent property and will not materially impair the purposes of this chapter or the public interest;

4. That the condition or situation of the specific piece of property for which such variance is sought is not so general or recurrent in nature as to make reasonably practicable the formulation of a general regulation for such condition or situation.

According to section 17.69.160 of the AMC, setbacks for a freestanding sign are to be no closer than ten feet to the property line or eighteen feet to the curb face with a maximum height of eight feet. The size of the subject property is approximately 2,041 square feet and is best described as triangularly shaped. The setback requirements in section 17.69.160 of the AMC of ten feet to the property line or eighteen feet to the curb face would cause an undue hardship. The envelope of the message board is eighty-five square feet and requires the following setback variance:

1. The pillar located on the southwest side of the parcel will require a setback of two feet three inches from the property line that runs parallel to First Street.

2. The pillar located on the northern part of the parcel will require a setback of ten feet and four inches from the property line that runs parallel to First Street and a setback of nine feet seven inches from the property line that runs parallel to Shaffer Road.

3. The pillar located on the east side of the parcel will require a setback of two feet two inches from the property line that runs parallel to Shaffer Road.

Due to the location of the subject property, the applicant is also requesting that a variance allows the electronic message board to be approximately thirty-seven feet and seven inches in height and allows two message boards to be 104 square feet and one message board to be 126 square feet. The subject property is surrounded by stores, restaurants, and other commercial facilities added to the fact the project site is approximately thirty-seven feet south of the intersection, a height of eight feet would not allow the enjoyment of substantial property rights possessed by other properties that have erected freestanding signs located in the same zoning area as the project site.

With the approval of the Site Plan, Conditional Use Permit, Architectural Review, and Zone Variance, the project will be consistent with the zoning ordinance and general plan with the adoption of Resolution No. 215-22 Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400.

II. FISCAL IMPACTS:

No negative fiscal impacts are anticipated with the approval of this project. This item has been reviewed by the Finance Department.

Agenda Report - Page 6
III. LEGAL REVIEW:

This item has been reviewed by the City Attorney.

IV. EXISTING POLICY:

None
V. ALTERNATIVES:

VI. INTERDEPARTMENTAL COORDINATION:

This item has been routed and reviewed by all departments.

VII. PUBLIC PARTICIPATION:

This item was adequately public noticed in the local newspaper on December 2, 2022 for the regularly scheduled City Council meeting on December 12, 2022.

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

VIII. ENVIRONMENTAL REVIEW:

Pursuant to the California Environmental Quality Act (CEQA), the project is categorically exempt under guideline section 15303, Class 3 “New Construction or Conversion of Small Structures.

Class 3 consists of construction and location of limited numbers of new, small facilities or structures.

IX. STEPS FOLLOWING APPROVAL:

Adopt the resolution approving the appeal of the Planning Commission's non-approval concerning Site Plan No. 22-22-0100 and Conditional Use Permit No. 22-22-0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400 and a five-day appeal period. The signed resolution will be given to the applicant.

Submitted by:

Greg Thompson, Community Development Director
Approved by:

Lori Waterman, City Manager

Agenda Report - Page 7
Attachments:

1. Notice of Appeal (BK Industries, Inc) 12-1-22

2. Resolution No. 3361-22 PC Appeal

3. site plan-combined copy_Redacted

BK INDUSTRIES INC
221 Business parkway
Atwater, Ca 95301
209-631-424 7
[email protected]
12/1//22
To Whom it May Concern:

I, Brad Kessler, The owner of BK Industries Inc. wish to Make you aware of my formal objection to the Planning Commision meeting Nov 30, 2022. Please consider this to be my Format Right to Appeal of the decision made on November 30th, 2022. BK Industries Inc. Feels that we have met all conditions, Worked diligently with The city of Atwater Planning, Building, & Engineering Staff to Achieve a Fantastic project for Atwater. BK Industries Inc. wishes to have this appeal set for public hearing before the city council on the next council meeting on December 12, 2022.

Please see the below references regarding the Project:

Motion to make the finding that the project is categorically exempt under California Environmental Quality Act (CEQA) Guideline section 15303, Class 3 "New Construction or Conversion of Small Structures;" and,
Motion to adopt Resolution No. PC 0215-22 approving Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review No. 22-22-0300, and Zone Variance 22-22-0400, for an Electronic Message Board located at the corner of First Street and Shaffer Road, Atwater North of (APN:
003-211-022)
I have also Attached the NOTICE OF SPECIAL MEETING PLANNING COMMISSION OF THE CITY OF

ATWATER
Should you have any further questions or concerns, do not hesitate to reach out.

Regards,
Brad Kessler: CEO
BK Industries Inc.
221 Business parkway
Atwater, Ca 95301
209-631-4247

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. 3361-22

A RESOLUTION OF THE CITY

COUNCIL TO GRANT THE APPEAL OF THE
PLANNING COMMISSION’S NON-APPROVAL OF
SITE PLAN NO. 22-20-100, CONDITIONAL USE
PERMIT NO. 22-22-0200, ARCHITECTURAL
REVIEW NO. 22-22-0300, AND ZONE VARIANCE
NO. 22-22-0400
WHEREAS, the Planning Commission reviewed Site Plan No. 22-22-100 , Conditional Use Permit No. 22-22-0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400 for an Electronic Message Board; and,
WHEREAS, said application was reviewed by the Planning Commission of the City of Atwater at a duly noticed public hearing on November 30, 2022; and, WHEREAS, 3 person(s) spoke in favor of the resolution, 1 person(s) spoke in opposition of the resolution; and,
WHEREAS, Commissioner Sanders moved to adopt the resolution approving the Site Plan, Conditional Use Permit, Architectural Review, and Zone Variance and the motion was seconded by Commissioner Daugherty; and,
WHEREAS, the motion failed with two ayes from Commissioners Daugherty and Sanders and two noes from Commissioners Borgwardt and Kadach; and, WHEREAS, on December 1, 2022, an appeal letter was submitted by Brad Kessler, the owner of BK Industries Inc.

WHEREAS, Mr. Kessler indicated he wished to appeal the decision rendered by the Planning Commission regarding Resolution No. 0215-22, Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review No. 22-22-0300, and Zone Variance No. 22-22- 0400 for an Electronic Message Board.

Resolution No. 3361-22 Page 2
WHEREAS, the City Council of the City of Atwater reviewed Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400
WHEREAS, said application was reviewed by the City Council of the City of Atwater on December 12, 2022; and,
WHEREAS, this project is statutorily exempt under California Environmental Quality Act (CEQA) guideline 15303, Class 3 “New construction of Conversion of Small Structures;” and, WHEREAS, __ person(s) spoke in favor of the resolution, __ person(s) spoke in opposition of the resolution, and __ written comment(s) have been submitted either in opposition or in favor of the resolution; and,
WHEREAS, the proposed Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400 would not have a detrimental effect on the health, safety, and welfare of the neighborhood nor have any adverse effect on the community; and,
WHEREAS, the City Council finds that the following findings can be made for Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400

1. That this application proposes to operate an electronic message board.

2. The project is consistent with the City’s General Plan and Zoning Ordinance.

3. That the project is exempt under CEQA guideline 15303, Class “3 “New Construction or Conversion of Small Structures.

4. That the public hearing for this application has been adequately noticed and advertised.

5. That the resolution would not have a detrimental effect on the health, safety, and welfare of the neighborhood or any adverse effects on the community.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Atwater grants the appeal from the Planning Commission to BK Industries, Inc., and hereby approves Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review 22-22- 0300 and Zone Variance No. 22-22-0400, subject to the following conditions:

BUILDING

1. Building Construction Plans and calculations shall be developed by a California Licensed Engineer or Architect and shall meet all current California Building Codes, California Energy Codes, and Atwater Municipal Code.

2. Special inspections for welding, concrete pour break test, and any hardware securements as directed by the California Building Code will be witnessed by said special inspector(s) and passing reports developed and copies given to the Building Division.

Resolution No. 3361-22 Page 3

3. Footings shall be out of the “ANGLE OF REPOSE” from any underground infrastructure, supporting documentation by a licensed engineer will need to be provided to the Building Division.

ENGINEERING

4. The project is a large overhead sign proposed within the public right-of-way. The proposed fixed-base support system would not yield or break away upon impact. The potential consequences of the support system failing require a design that cannot be made breakaway. The project shall be designed to locate all proposed sign supports behind a crashworthy barrier with adequate clearance to the support to ensure that the barrier will function as intended when struck. Barriers shall be designed per the latest editions of the Caltrans Standard Plans and Specifications and in accordance with the guidelines of the latest editions of the Caltrans Highway Design Manual, the AASHTO A Policy on Geometric Design of Highways and Streets and the AASHTO Roadside Design Guide, each as applicable.

5. Applicant shall provide adequate analysis that electronic displays will not interfere with the ability of motorists or pedestrians to clearly see all traffic signal heads and street name signs from intersection approaches without an electronic display appearing to be behind any signal heads or street name signs.

6. Applicant shall provide an engineered monopole design to minimize the number of required sign supports.

7. All activities undertaken in accordance with this approval shall comply with the City’s General Plan and Municipal Code.

8. The applicant shall secure and comply with all applicable federal, state and local licenses, permits, authorizations, conditions, agreements, and orders prior to or during construction and operation, as appropriate.

9. The applicant shall comply with all regulations and code requirements of the Community Development Director, Public Works Director, City Engineer, Building Official, Fire Official, the Police Chief and any other agencies requiring review of the project. If required, these agencies shall be supplied copies of the final maps, site plans, public improvement plans, grading plans and building plans.

10. All Conditions of Approval for this project shall be written by the project developer on all building permit plan check sets submitted for review and approval. These Conditions of Approval shall be on, at all times, all grading and construction plans kept on the project site. It is the responsibility of the project developer to ensure that the project contractor is aware of, and abides by, all Conditions of Approval. Prior approval from the Community Development Director must be received before any changes are constituted in site design, grading, building design, building colors or materials, etc.

Resolution No. 3361-22 Page 4

11. Final maps and/or site development plans shall be in substantial conformance to the approved tentative map/site plan and must be submitted to the City Engineering Division for review and approval. Maps shall be prepared, wet signed and sealed by a civil engineer, land surveyor, or architect registered in the State of California and licensed to prepare final maps and/or site development plans.

12. The applicant shall take all necessary measures to ensure that his activities or those of his agents do not result in measurable erosion of soils on the site, either wind or water, during the construction and operation of the project covered by this approval.

13. Development of the property must conform to the plans as submitted with revisions as specified by the City of Atwater City Council, City of Atwater Planning Commission, and these Conditions of Approval.

14. All new construction requires building permits in accordance with all applicable building and fire codes and submission of a plot and grading plan prepared by a registered professional civil engineer showing property lines, building locations, topography and such other data as required by the Community Development Department.

15. All necessary utility easements shall be retained, reserved, or dedicated. An encroachment permit shall be required for any construction to be done in the public right of way, in easements, or on lands to be dedicated to the City of Atwater upon completion of the improvements. The encroachment permit shall be obtained prior to the start of said work. The permit fees shall be determined per the current adopted fee schedule.

16. Work done by a contractor pursuant to this approval shall not begin before the contractor has been shown by the applicant a copy of all applicable permits.

17. Contractor(s) shall hold current California Contractor License for the type of work to be fabricated and/or constructed.

18. All improvements, public and private, shall be designed and constructed in accordance with the most recent edition of the Standard Plans and Specifications, all applicable state and local ordinances, standards, and requirements. Should a conflict arise, the governing specification shall be determined by the City Engineer.

19. All on- and off-site development and improvements shall be designed and constructed at the sole expense of the applicant.

20. Applicant shall provide a current geotechnical engineering investigation for the proposed project and a plot of any and all geologic hazards.

Resolution No. 3361-22 Page 5

21. For the proposed improvements, the Applicant shall cause Improvement Plans to be prepared. The plans shall be prepared by a Licensed Civil Engineer or under his/her direction. The plans shall be prepared on 24” X 36” plan sheets and to a reasonable scale. The plans shall be in a format to be approved by the City Engineer and shall show all the proposed grading and all improvements for the proposed project. The title of the plan shall be shown at the top of Sheet No. 1. Sheets shall be numbered in consecutive order. An index showing the sheets contained within and as a part of the Site Improvement Plan shall be shown on Sheet 1.

22. All utilities shall be installed underground and in conformance with existing City policy including without limitation the City of Atwater Zoning Ordinances.

23. Sight distance requirements at all street intersections shall conform to all applicable standards.

24. If the improvement plans show a need to excavate in any public road right-of-way, the Applicant shall place a cash deposit with the Community Development Department to ensure that any damage to the existing roadway is repaired in a timely manner.

25. Developer shall comply with Chapter 13.22 of the Atwater Municipal Code “Storm Water Management and Discharge Control” and with the City of Atwater Post Construction Standards Plan.

26. If required, the Applicant shall process a Post-Construction Stormwater BMP Operation and Maintenance Plan for review and approval to the satisfaction of the City Engineer.

27. The Applicant shall execute any required agreements identified in the PostConstruction Standards Plan that pertain to the transfer of ownership and/or long-term maintenance of stormwater treatment or hydrograph modification BMPs to the satisfaction of the City Engineer and the Public Works Director.

28. Prior to occupancy, the developer shall supply the City with both hardcopy and electronic (Adobe PDF and AutoCAD file formats) showing plans that reflect the project as it was built (As-Builts or Record Drawings) to the satisfaction of the City Engineer.

29. Applicant shall comply with all requirements of the San Joaquin Valley Air Pollution Control District (SJVAPCD).

30. Applicant shall comply with the requirements of all public utility companies.

31. All broken, cracked, or otherwise damaged public improvements, such as curb, gutter, sidewalk, and pavement, shall be saw cut, removed and, replaced in accordance with applicable city standards to the satisfaction of the City Engineer.

Resolution No. 3361-22 Page 6
FIRE

32. No special conditions are needed.

POLICE

33. No special conditions are needed.

PLANNING

34. All on-site graffiti shall be the responsibility of the property owner. All graffiti shall be abated in accordance with City Graffiti Ordinances.

35. Project shall comply with the most current California Code of Regulations Title 24, parts 1 through 12, the most current Health and Safety Codes and the most current Fire and Life Safety Codes, all along with the California State Amendments. All building permit applications received by the City of Atwater Building Division on or after January 1, 2020, shall comply with parts 1 through 10 and part 12 of the 2019 edition of the California Code of Regulations Title 24.

36. Applicant shall comply with all of the conditions of approval prior to issuance of a business license.

37. No glare during construction.

38. The applicant will be responsible for relocating irrigation facilities and equipment.

39. Project must comply with all provisions of A.M.C 17.69

40. Should the lease expire, the developer shall be responsible to restore the premise back to the condition prior to the construction of the electronic message board.

41. The Planning Commission shall retain the right to reconsider Site Plan No. 22-22-100, Conditional Use Permit No. 22-22-0200, Architectural Review 22-22-0300 and Zone Variance No. 22-22-0400.

42. This approval is dependent upon and limited to the proposals and plans contained, supporting documents submitted, presentations made to staff, Planning Commission as affirmed to by the applicant. Any variation from these plans, proposals, supporting documents, or presentations is subject to review and approval prior to implementation.

43. The applicant or applicant’s successor in interest shall indemnify and defend and hold harmless the City of Atwater, its agents, officers, and employees from any and all

Resolution No. 3361-22 Page 7
claims, actions, or proceedings against the City of Atwater, its agents, officers, and employees to attack, set aside, void, or annul any approval by the City of Atwater and its advisory agency, appeal board, or legislative body concerning this application, which action is brought within applicable statutes of limitations. The City of Atwater shall promptly notify the applicant or applicant’s successor in interest of any claim or proceedings and shall cooperate fully in the defense. If the City fails to do so, the applicant or applicant’s successor in interest shall not thereafter be responsible to defend, indemnify or hold the City harmless. This condition may be placed on any plans or other documents pertaining to this application.

The foregoing resolution is hereby adopted this 12th day of December 2022.

AYES:

NOES:

ABSENT:

APPROVED:
_____________________________

MIKE NELSON, MAYOR
ATTEST:
______________________________

KORY BILLINGS, CITY CLERK

OPERATIONAL STATEMENT
Bk Industries, Inc. holds a current lease on the property owned by the City of Atwater on the south side of Bellevue Road, between the intersections of First Street and Shaffer Road. The property is generally triangular and bound on all three sides by existing vertical curbs. The property is approximately 2,041 square feet in size and currently irrigated and planted in turf.

The project proposes to construct a structure approximately 37’-7” tall of metal construction with 3 sides. Each of the 3 sides will have an electronic message board approximately 19’ from the finished ground surface and not higher than approximately 33’ from the finished ground surface. The two electronic message boards facing northwest and northeast will be approximately 104 square feet and the electronic message board facing south will be approximately 126 square feet. The general character and aesthetic of the structure will match and complement the recently constructed Clock Tower on Broadway Avenue and Fifth Street.

The electronic message boards will be used to provide advertising opportunities to the local business market as well as provide a place for creating awareness for community events.

The existing turf will be removed and replaced with concrete pavers to create an attractive surface that requires no irrigation or demand for water.

OPERATIONAL STATEMENT
Bk Industries, Inc. holds a current lease on the property owned by the City of Atwater on the south side of Bellevue Road, between the intersections of First Street and Shaffer Road. The property is generally triangular and bound on all three sides by existing vertical curbs. The property is approximately 2,041 square feet in size and currently irrigated and planted in turf.

The project proposes to construct a structure approximately 37’-7” tall of metal construction with 3 sides. Each of the 3 sides will have an electronic message board approximately 19’ from the finished ground surface and not higher than approximately 33’ from the finished ground surface. The two electronic message boards facing northwest and northeast will be approximately 104 square feet and the electronic message board facing south will be approximately 126 square feet. The general character and aesthetic of the structure will match and complement the recently constructed Clock Tower on Broadway Avenue and Fifth Street.

The electronic message boards will be used to provide advertising opportunities to the local business market as well as provide a place for creating awareness for community events.

The existing turf will be removed and replaced with concrete pavers to create an attractive surface that requires no irrigation or demand for water.

Order Confirmation

CITY OF ATWATER
750 BELLEVUE RD
ATWATER CA 95301
Order Number: 351004
Order PO:

B -To Account: 19288
Date: 11/21/22
Sa es Contact: Stefan Beard
Sa es Contact Phone:

Dates Order No. Description Product Size Billed
Units
Times
Run Net Amount
11/23/2022 - 11/23/2022 351004 Print Legal Ad- PL00994460 PL0099446
MER-Merced Sun-Star
Legal Legals & Public Notices CLS
1 x 35 L 35 L 1 $95.16
Order Tota Cost
$95.16

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SUCCESSOR AGENCY TO

THE REDEVELOPMENT

AGENCY AGENDA REPORT

MEETING DATE: December 12, 2022
TO: Chair and Board of Directors of the Atwater Housing Successor FROM: Greg Thompson, Community Development Director
PREPARED BY: Jim Vang
SUBJECT: Awarding a General Construction Contract for the Pedestrian and Roadway Improvements on Laurel Avenue and Sixth
Street Project (Community Development Director Thompson)

RECOMMENDED COUNCIL ACTION
Award a General Construction Contract, in a form approved by the City Attorney, to Terra West Construction Inc. of Clovis, California, for the Pedestrian and Roadway Improvements on Laurel Avenue and Sixth Street Project, City Project No. 19-5, in an amount not to exceed 163,965.00, and authorize and direct the City Manager, and her designee, to sign and affirm construction contract change orders up to an aggregate of $16,369.50 (10%); and authorize and direct the City Manager, or her designee, to execute the contract on behalf of the City.

I. BACKGROUND/ANALYSIS:

At their regular meeting on August 08, 2022, the City Council authorized a call for bids to construct pedestrian improvement along east side of Sixth Street between Juniper Avenue and Laurel Avenue, and along the south side of Laurel Avenue between Sixth Street and Fifth Street. The proposed improvements will tie into existing improvements previously constructed by federal aid CMAQ projects. The work consists of replacing damaged curb and gutter, sidewalk, and pavement, as well as sections of infill sidewalk, curb and gutter, and pavement conforms.

Bid proposals for this project were opened on Thursday, November 10, 2022, at 2:00 P.M. and were totaled and reviewed for responsiveness. Seven (7) bid proposals were received. The Bid Summary (Exhibit “A”) shows the bid amounts ranging from $163,965.00 to $288,823.60.

Staff has reviewed the bids and determined that the bid submitted by Terra West Construction Inc. of Clovis, California in the amount of $163,965.00 is a responsive and acceptable bid.

The recommended contract administration practice is to include 10% of the bid amount as contingency funds for unforeseen and necessary changes to the contract. Staff is

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

Agenda Report - Page 2

recommending a total construction budget of $185,334.50. This total budget includes the construction contract amount of $163,965.00 for bid items with contractor, $16,369.50 for contingency, and $5,000 for construction staking, testing and special inspection.

II. FISCAL IMPACTS:

Sufficient funding for this project is budgeted in the Capital Improvement Plan FY 2022/23; Local Transportation Fund Account No. 1013.1080.T004; $242,000.00. This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item was 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 Control Act (CEQA) guidelines, Section 15301, 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:

Following Council’s approval for the award of contract, staff will issue a notice of award to the contractor, hold a pre-construction meeting, and issue a notice to proceed, with construction to follow.

Attachments:

1. Exhibit A - Bid Summary

2. Exhibit B - General Construction Contract

3. Exhibit C - Improvement Plans

CITY OF ATWATER

COMMUNITY DEVELOPMENT DEPARTMENT

ENGINEERING DIVISION

BID SUMMARY

PEDESTRIAN AND ROADWAY IMPRVOMENT

ON LAUREL AVENUE AND SIXTH STREET PROJECT
Project No. 19-5; Bid Call No. 714-22
Bid Opening: November 10, 2022; Engineer’s Estimate: $230,000 No. Contractor Bid Total
1 Terra West Construction, Inc.
1030 Gettysburg Avenue, Suite 107
Clovis, CA 93612
$163,965.00
2 TBS Contractors
1605 E. Gerard Avenue
Merced, CA 95341
$168,760.51
3 FBD Vanguard Construction, Inc.
550 Greenville Road
Livermore, CA 94550
$179,375.30
4 George Reed, Inc.

P.O Box 4760
Modesto, CA 95352
$192,495.80
5 Bush Engineering, Inc.
518 N. Redington Street
Hanford, CA 93230
$212,125.00
6 Dirt Dynasty, Inc.

P.O Box 67
Farmington, CA 95230
$272,292.00
7 United Pavement Maintenance
P.O Box 1017
Hughson, CA 95326
$288,823.60

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 1 of 12

GENERAL CONSTRUCTION CONTRACT
This GENERAL CONSTRUCTION CONTRACT (“Contract”) is made by and between the CITY OF ATWATER, a California municipal corporation (“City”) and Terra West Construction (“Contractor”) as of December 12, 2022. City and Contractor shall be referred to herein separately as a “Party” and collectively as “Parties”.

1. The Contract. It is mutually agreed and understood that the complete Contract shall consist of the following component documents, all of which are fully a part hereof as if herein set out in full, or if not attached, as if hereto attached:

A. This Contract;
B. Plans and Specifications for PROJECT NO. 19-5.

C. Special Provisions for PROJECT NO. 19-5;
D. Notice to Contractors;
E. Proposal to the City of Atwater;
F. Performance Bond;
G. Labor and Material Bond;
H. Current edition of the Caltrans Standard Specifications; I. Current edition of the Caltrans Standard Plans;
J. The latest revisions to the General Prevailing Wage Rates; and K. Any Published Addenda.

Any and all obligations of the City and the Contractor are fully set forth and described therein.

All the above component documents are intended to cooperate so that any work called for in one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. The component documents comprising the complete Contract are sometimes hereinafter referred to as the “Contract Documents”. To the extent any of the Contract Documents are in conflict with each other, the component documents shall have priority based upon their hierarchical order set forth above.

2. Effective Date. This Contract shall only become effective once all the Parties have executed the Contract (the “Effective Date”). Contractor, however, shall not commence the performance of the work until it has been given notice by City (“Notice to Proceed”).

3. Term. This Contract shall commence on the Effective Date and naturally terminate after Final Payment of Contractor by City as defined by Section 5-1.08 of the Special Provisions.

Section 8-1.14 of the 2010 Caltrans Standard Specifications provides for Terminations. Section 2-1.12A of the 2010 Caltrans Standard Specifications allows for termination in accordance with 49 CFR 26.13(b) for failure by the contractor to carry out the requirements of 49 CFR part 26 in the award and administration of this contract.

4. The Work. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, transportation, and material necessary to perform and complete in a good and workmanlike manner all work of improvement in accordance with the Contract Documents, and in the manner designated in, and in strict conformity with, the Project Plans and Specifications for PROJECT NO. 19-5, entitled, “PEDESTRIAN AND ROADWAY IMPROVEMENTS ON LAUREL

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 2 of 12 AVENUE AND SIXTH STREET” for construction in Atwater, Merced County, California. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, transportation, and material shall be furnished and said work performed and completed as required in said Project Plans and Specifications under the sole direction and control of the Contractor, and subject to inspection and approval of the City or its representative. The City hereby designates the City Engineer as its representative for the purpose of this Contract.

City, without invalidating this Contract, may order changes to the work, consisting of additions, deletions, or other revisions. All such changes to the work, including in the Contract Price and Contract time for performance, shall be authorized by Change Order or Work Change Directive, signed by the City Manager. Contractor shall not be entitled to an increase in the Contract Price or an extension of the Contract time for performance if it fails to secure such written authorization for such work, except in the case of an emergency as provided in the 2010 Caltrans Standard Specifications or the Special Provisions.

5. Contract Price. The City agrees to pay, and the Contractor agrees to receive and accept, the following Contract prices as full compensation for furnishing all materials and performing all work in accordance with this Contract as follows:

BASE BID
ITEM
NO.

ITEM

CODE ITEM

UNIT OF

MEASURE

ESTIMATED

QUANTITY
UNIT
PRICE
TOTAL
ITEM
PRICE
1 153248 REMOVE EX. CONCRETE SF 1,316 $2.50 $3,290.00
2 398001
REMOVE EX. ASPHALT
CONCRETE PAVEMENT SF 6,837 $3.00 $20,511.00
3 731840
REMOVE EX. CONRETE
CURB AND GUTTER LF 463 $12.00 $5,556.00
4 731710
REMOVE EX. CONCRETE
CURB LF 6 $7.00 $42.00
5 170103

CLEARING AND
GRUBBING LS 1 $5,500 $5,500.00
6 012888 REMOVE EX. TREES EA 2 $2,000.00 $4,000.00
7 036290 TRIM EX. TREES LS 1 $1,000.00 $1,000.00
8 730010
MINOR CONCRETE (6”
CURB AND GUTTER) LF 488 $49.00 $23,912.00
9 730020

MINOR CONCRETE
(RETAINING CURB) LF 45 $40.00 $1,800.00
10 731516
MINOR CONCRETE (6”

THICK DRIVEWAY
APPROACH) SF 324 $24.00 $7,776.00
11 731521

MINOR CONCRETE
(SIDEWALK) SF 1,573 $11.00 $17,303.00
12 731623

MINOR CONCRETE
(CURB RAMP) SF 176 $12.00 $2,112.00

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 3 of 12 ITEM
NO.

ITEM

CODE ITEM

UNIT OF

MEASURE

ESTIMATED

QUANTITY
UNIT
PRICE
TOTAL
ITEM
PRICE
13 730070

DETECTABLE WARNING
SURFACE SF 46 $50.00 $2,300.00
14 260203
CLASS 2 AGGREGATE
BASE (5.5 IN THICKNESS) SF 6,775 $2.00 $13,550.00
15 390132
HOT MIX ASPHALT (2.5
IN THICKNESS) SF 6,775 $3.50 $23,712.50
16 208600
3” PLASTIC PIPE (PVC
SLEEVE) LF 30 $50.00 $1,500.00
17 130150

WATER POLLUTION
CONTROL LS 1 $500.00 $500.00
18 197003 CONTOUR GRADING LS 1 $5,000.00 $5,000.00
19 999990 MOBILIZATION LS 1 $23,600.50 $23,600.50
20 SURVEY MONUMENT
PRESERVATION LS 1 $1,000 $1,000
TOTAL BASE BID:
$163,965.00
Name of Bidder or Firm: Terra West Construction, Inc.

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 4 of 12

6. Termination. If the Contractor should become insolvent or if Contractor should make a general assignment for the benefit of its creditors, or if a receiver should be appointed on account of its insolvency, or if it or any of its subcontractors should violate any of the provisions of the Contract Documents, the City may serve written notice upon Contractor and its surety of its intention to terminate the Contract. The notice shall contain the reasons for the City’s intent to terminate the Contract and unless the violation ceases and/or is corrected within ten (10) days of service of the notice, the Contract shall cease and terminate. In the event of any such termination, the City shall immediately serve a written notice of termination on the surety and the Contractor, and the surety shall have the right to take over and perform the Contract. The surety shall serve a written notice of intent to take over and perform the Contract on the City within fifteen (15) days of service of the notice to terminate and shall commence performance of the Contract within thirty (30) days from service of the notice to terminate. In the event the surety fails to serve the notice of intent to take over and perform or fails to commence performance as required in this Section, the City may take over the work and prosecute the same to completion by contract or by any other method it may deem advisable, for the account and at the expense of the Contractor, and the Contractor and its surety shall be liable to the City for any excess cost incurred by the City, and in such event the City may, without liability for so doing, take possession of and utilize in completing the work such materials, appliances, plant, and other property belonging to the Contractor as may be on the site of the work and necessary to complete the work.

7. Notices. All notices given pursuant to this Contract shall be in writing and shall be mailed by first class mail, postage prepaid, certified, or registered, with return receipt requested.

Such notice shall be deemed served or given three (3) business days after deposit in the United States Postal Service. The address of each Party to this Contract for purposes of notice shall be as indicated below. Each Party may change its address for notice by giving notice of such change to the other Party in the manner set forth above.

If to City: Lori Waterman, City Manager
City of Atwater
750 Bellevue Road
Atwater, California 95301
If to Contractor: Terra West Construction, Inc.
1030 Gettysburg Avenue, Suite 107
Clovis, CA 93612
If to Surety: Great Midwest Insurance Company

8. Assignment of Contract. The Contractor shall not assign the Contract, moneys due under the Contract, or monies to become due under the Contract, without first obtaining the prior written consent of the City.

9. Contract Security. The Contractor shall furnish a surety bond in an amount at least equal to One Hundred Percent (100%) of the Contract price as security for the faithful performance of

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 5 of 12 this Contract (“Performance Bond”). The Contractor shall also furnish a separate surety bond in an amount at least equal to One Hundred Percent (100%) of the Contract price as security for the payment of all persons for furnishing materials, provisions, provender, or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for performing any work or labor thereon of any kind, and for the payment of amounts due under the Unemployment Insurance Code with respect to such work or labor in connection with this Contract, and for the payment of a reasonable attorney’s fee to be fixed by the court in case suit is brought upon the bond (“Labor and Material Bond”).

10. Insurance. Contractor shall maintain in full force and effect policies of insurance set forth herein, which shall be placed with insurers with a current A M Best’s rating of no less than A VII and will provide City with written proof of said insurance. Contractor shall maintain coverage as follows and will provide City with written proof of said insurance. Such insurance shall always remain in effect at least until final payment and thereafter when Contractor may be correcting, removing, or replacing defective work. The cost of such insurance shall be included in the contractor’s bid. Contractor shall maintain coverage as follows:

A. Minimum Scope of Insurance.

1. Commercial General Liability coverage at least as broad as the Insurance Services Office, Inc. (ISO Form CG 00 01) with limits of liability of at least $1,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability insurance forms or other forms with a general aggregate limit are used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be $2,000,000.

2. An Additional Insured Endorsement to the Commercial General Liability coverage form naming the City as an insured at least as broad as ISO form CG 20 37 10 01 entitled ADDITIONAL INSURED-OWNERS, LESSEES OR CONTRACTORS COMPLETED OPERATIONS.

3. Business Auto Liability coverage at least as broad as ISO form CA 00 01 with limits of liability of at least $1,000,000 combined single limit per accident for bodily injury and property damage, covering any automobile owned, leased, hired, or borrowed by the Contractor, its agents, representatives, or employees, or for which the Contractor is responsible.

4. An Automobile Liability Special Endorsement to the Business Auto Liability form naming the City as an insured regarding damages and the defense of claims arising out of use of any automobile for which the Contractor is responsible. (In the alternative, the Contractor may provide a Designated Insured Endorsement form at least as broad as ISO Form CA 00 01).

5. Workers’ Compensation coverage for the Contractor’s employees with limits as required by California law, and Employers Liability coverage with limits of liability of at least $1,000,000 per accident or occurrence.

6. A Certificate of Liability Insurance showing evidence of the above liability coverages prior to the commencement of work.

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 6 of 12 B. Minimum Limits of Insurance.

Contractor shall maintain limits no less than:

1. General Liability: $1,000,000
(Including operations,
products and completed
operations.)
per occurrence for bodily
injury, personal injury, and
property damage If
Commercial General Liability
insurance or other form with a
general aggregate limit shall
apply separately to this
project/location or the general
aggregate limit shall be twice
the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

C. Deductibles and Self-Insured Retentions.

Any deductibles or self-insured retentions must be declared to and approved by the City.

At the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or selfinsured retentions as respects to the City, its officers, public officials, employees, and volunteers, or (2) the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

D. Other Insurance Provisions.

The Commercial General Liability and Automobile Liability policies are to contain, or be endorsed to contain the following provisions:

1. The City, its officers, public officials, agents, employees, and volunteers are to be covered as insured with respect to liability and defense arising out of automobiles owned, leased, hired, or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (CG 20 10), or as a separate owner’s policy.

2. For any claims related to this project, the Contractor’s liability insurance coverage shall be primary insurance as respects the City, its officers, public officials, employees, and volunteers. Any insurance of self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 7 of 12

3. Each insurance policy required by this clause shall be endorsed shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City.

4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the California Civil Code.

5. The Contractor agrees that all liability insurance coverages available to it as a named insured will be applicable to the City as an Additional Insured.

6. If other than ISO forms are used by the insurer(s) for the Contractor, each form used will require individual review and approval by the City of Atwater.

E. Acceptability of Commercial Insurers.

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than “A: VII.”
F. Verification of Coverage.

Contractor shall furnish the City with Certificates of Liability Insurance and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the Entity’s forms, provided those endorsements or policies conform to the requirements of the Contract. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.

G. Subcontractors.

Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the insurance requirements stated herein.

H. For Construction Risks.

If this is a Proposal and Contract that involves a construction risk, in addition to the Insurance Requirement specified above, the Contractor shall procure and maintain Course of Construction (Builder’s Risk) insurance covering all risks of loss with limits of liability of not less than the completed value of the project with no coinsurance penalty provisions.

The Course of Construction insurance policies shall contain the following provisions:

1. The City shall be named as loss payee; and

2. The insurer shall waive all rights of subrogation against the City.

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 8 of 12

11. Indemnification. The Contractor will indemnify, defend with counsel selected by the City, save, keep, and hold harmless, the City and all officers, public officials, employees, and agents thereof from and against any and all actions, claims, loss, cost, damage, injury (including, without limitation, disability, injury or death of an employee of Contractor or its subcontractors), expense and liability of every kind, nature and description that arise out of, pertain to or relate to performance of the work, provided that any such action, claim, loss, cost, damage, injury, expense or liability is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property (other than the work itself), including the loss of use resulting there from but only to the extent caused by any negligent act or omission of Contractor, subcontractor, any supplier, or any individual or entity directly or indirectly employed by any of them to perform any of the work or anyone for whose acts any of them may be liable. It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Notwithstanding the above, the Contractor shall, wherever it is necessary, keep and maintain at his sole cost and expense during his operations under this Contract such warnings, signs, and barriers as may be required to protect the public. The provisions of the preceding sentence shall not impose any liability upon the City and are for the express benefit of the general public.

Acceptance by City of insurance certificates and endorsements required under this Contract does not relieve Contractor from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Contract, Contractor acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

It is expressly understood that Contractor is an independent contractor and that its employees shall not be employees of or have any contractual relationship with the City.

Contractor shall be responsible for the payment of all taxes, workers’ compensation insurance and unemployment insurance. Should contractor desire any insurance protection, the Contractor is to acquire such protection at its expense.

In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Contract is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

12. Accident Prevention. Precaution shall be exercised at all times for protection of persons (including employees) and property. The safety provisions of applicable laws, building and construction codes shall be observed. Machinery, equipment, and other hazards shall be guarded or eliminated in accordance with the safety provisions of the Construction Safety Orders issued by the Industrial Accident Commission of the State of California.

13. Payment. The City will make partial and final payment to the Contractor except that the City will retain five percent (5%) of the final payment amount until the expiration of thirty-five

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 9 of 12 (35) days from the date of recording by City of the notice of acceptance of completion of all work covered by this Contract, at which time and not before, City shall pay to Contractor the remaining five percent (5%), less any previous payments and deductions provided for herein.

The closure date for the purpose of making monthly progress payment will be the last calendar day of that month. The Contractor may request in writing that such monthly closure date be changed. The Engineer may approve such request when it is compatible with the City’s payment procedure.

Each month, the Contractor will submit its own invoice for work performed through the closure date and the Engineer will make an approximate measurement of the work performed through the closure date and as a basis for making monthly payments, estimate its value based on the Contract unit prices or as the Engineer deems appropriate. The City will endeavor to, not later than twenty (20) working days after receipt of the Contractor’s invoice, make partial payment to the Contractor, based on work performed and material incorporated in the project as of the closure date of the particular calendar month, providing that the Contractor’s invoice for the work performed agrees with the Engineer’s determination. If the Engineer’s determination differs from the Contractor’s invoice, the City will make payment to the Contractor for those items or portions of items not in dispute not later than payment would have been made had no dispute occurred. Within ten (10) calendar days after agreement on disputed work is achieved between the City and the Contractor, the City shall pay the Contractor for any additional monies due as a result of settling any dispute. When the work has been satisfactorily completed, the Engineer will determine the quantity of work performed and prepare the final estimate.

The payment of progress payments by the City shall not be construed as an absolute acceptance of the work done up to the time of such payments, but the entire work is to be subjected to the inspection and approval of the City and subject to whatever inspection and approval may be required by law.

It is further agreed by the Parties that before each payment is made as provided above, receipts and releases of liens of all kinds for all labor and materials and all other indebtedness connected with the work shall be presented to the City by the Contractor upon the request of the City.

14. Prevailing Wage. The statement of prevailing wages appearing in the General Prevailing Wage Rates is hereby specifically referred to and by this reference is made a part of this Contract. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this instrument shall control, and nothing herein shall be considered as an acceptance of the terms of said proposal conflicting herewith.

15. Article VI. The improvements contemplated in the performance of this Contract is a Federal-Aid improvement over which the State of California shall exercise general supervision.

The State of California therefore shall have the right to assume full and direct control over this Contract whenever the State of California, at its sole discretion, shall determine that its responsibility to the United States so requires. In such cases, the State Contract Act will govern.

16. General Provisions.

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 10 of 12 (a) Modification. No alteration, amendment, modification, or termination of this Contract shall be valid unless made in writing and in accordance with the Contract Documents. (b) Waiver. No covenant, term, or condition or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed, and any waiver of the breach of any covenant, term, or condition shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term, or condition.
(c) Authority. All Parties to this Contract warrant and represent that they have the power and authority to enter into this Contract and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states or firms and that all former requirements necessary or required by the state or federal law in order to enter into the Contract have been fully complied with.
(d) Drafting and Ambiguities. Each Party acknowledges that it has reviewed this Contract with its own legal counsel, and based upon the advice of that counsel, freely entered this Contract. Each Party has participated fully in the review and revision of this Contract.

Any rule of construction that ambiguities are to be resolved against the drafting party does not apply in interpreting this Contract.
(e) Governing Law. This Contract shall be governed by and construed in accordance with the laws of the state of California.
(f) Venue. Venue for all legal proceedings shall be in the Superior Court of California for the County of Merced.
(g) Severability. If this Contract in its entirety is determined by a court to be invalid or unenforceable, this Contract shall automatically terminate as of the date of final entry of judgment. If any provision of this Contract shall be determined by a court to be invalid and unenforceable, or if any provision of this Contract is rendered invalid or unenforceable according to the terms of any federal or state statute, which becomes effective after the Effective Date of this Contract, the remaining provisions shall continue in full force and effect and shall be construed to give effect to the intent of this Contract. (h) Counterparts. This Contract may be executed simultaneously and, in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
(i) Audit. City shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Contractor’s charges to City under this Contract.
(j) Entire Contract. This Contract, together with its specific references, attachments, and exhibits, constitutes the entire agreement of the Parties with respect to the subject matters

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 11 of 12 hereof, and supersedes any and all prior negotiations, understanding and agreements with respect hereto, whether oral or written.
(k) Supersedes Prior Agreement. It is the intention of the Parties hereto that this Contract shall supersede any prior agreements, discussions, commitments, or representations whether, written, electronic or oral, between the Parties with respect to the subject matter of this Contract.
(l) Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” and “can” are permissive.
(m) Headings. Headings used in this Contract are for reference purposes only and shall not be considered in construing this Contract.
(n) Attorney’s Fees and Costs. If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret provisions of this Contract, the prevailing Party shall be entitled to reasonable attorney's fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled. (o) Necessary Acts and Further Assurances. The Parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Contract.
(p) Time is of the Essence. Time is of the essence in this Contract for each covenant and term of a condition herein.

GENERAL CONSTRUCTION CONTRACT between
City of Atwater and Terra West Construction, Inc. Page 12 of 12 IN WITNESS WHEREOF, three (3) identical counterparts of this Contract, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Parties hereinabove named, on the day and year first herein written.

CITY OF ATWATER, a Municipal Corporation Terra West Construction, Inc.

By: _______________________________________ By:________________________________________ Lori Waterman, City Manager Contractor licensed in accordance with an act providing for the registration of contractors.

ATTEST:
_______________________________________
By: ________________________________________
Kory Billings, City Clerk
APPROVED AS TO FORM:

By:________________________________________
Frank Splendorio, City Attorney
ACCOUNT DATA: LICENSE NO. ______________________________ PROJECT NO. 19-5 TAXPAYER I.D. NO. ________________________ Contract No. _________________________________ VENDOR NO. ______________________________ Project Account No./Amount: ADDRESS: ________________________________ _____________________ / $ ______________________ PHONE: ___________________________________ FAX: _____________________________________
EMAIL: ___________________________________
_________________________________________ (SEAL)
By: __________________________________________
Finance Director Verification

Revision Engineer's Seal Client/Project
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SIXTH STREET AND LAUREL AVENUE

PEDESTRIAN IMPROVEMENT PROJECT
CITY PROJECT NUMBER 19-5
GENERAL NOTES 02 GENERAL NOTES GENERAL NOTES (CONT.) NPDES NOTES UNDERGROUND NOTES CLEARING AND GRADING NOTES SURFACE IMPROVEMENTS BENCHMARK CONCRETE PAVING NOTES CONSTRUCTION EQUIPMENT EMISSIONS NOTES ASPHALT PAVING NOTES CITY OF ATWATER NOTES (CONT.) CITY OF ATWATER NOTES “ ” UNDERGROUND NOTES 06.08.2022 E505

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PEDESTRIAN IMPROVEMENT PROJECT
CITY PROJECT NUMBER 19-5
DEMOLITION PLAN 03

JUNIPER AVENUE SIXTH STREET FIFTH STREET

LAUREL AVENUE SHEET LEGEND DEMOLITION NOTES KEYNOTES
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CITY PROJECT NUMBER 19-5
CONSTRUCTION PLAN 04

JUNIPER AVENUE SIXTH STREET FIFTH STREET

LAUREL AVENUE SHEET LEGEND CONSTRUCTION NOTES KEYNOTES
N DRIVEWAY TYP. CONSTRUCTION ITEMS SCALE: NONE CURB RAMP TYP. CONSTRUCTION ITEMS SCALE: NONE 06.08.2022 E505

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CITY PROJECT NUMBER 19-5
TEMPORARY EROSION AND SEDIMENT CONTROL PLAN 05

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LANDSCAPE LANDSCAPE SIXTH STREET LAUREL AVENUE
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SIXTH STREET AND LAUREL AVENUE

PEDESTRIAN IMPROVEMENT PROJECT
CITY PROJECT NUMBER 19-5
CONSTRUCTION DETAILS 06 1 CURB, GUTTER AND SIDEWALK DOWEL N.T.S. RE: 2 CONCRETE DRIVEWAY AND SIDEWALK DETAIL (TYP) N.T.S. RE: 3 TYPICAL DRIVEWAY CROSS SECTION N.T.S. RE: 5 ROOT BARRIER INSTALLATION DETAIL N.T.S. RE: 4 ACCESSIBLE CURB RAMP DETAIL N.T.S. RE: 6 RETAINING CURB DETAIL N.T.S. RE: 7 TRUNCATED DOMES N.T.S. RE: N 06.08.2022 E505

SUCCESSOR AGENCY TO

THE REDEVELOPMENT

AGENCY AGENDA REPORT

MEETING DATE: December 12, 2022
TO: Chair and Board of Directors of the Atwater Housing Successor FROM: Delilah Youmara, Finance Director
PREPARED BY: Julia Coronado
SUBJECT: Adopting the Recognized Obligation Payment Scheduled FY 23-24 for the July 1, 2023 through June 30, 2024 period and adopting the Administrative Budget for Fiscal Year 2023- 24 (Finance Director Youmara)

RECOMMENDED COUNCIL ACTION
Motion to adopt SA No. 2022-5 adopting the Recognized Obligation Payment Schedule 23-24 for the July 1, 2023 through June 30, 2024 period and adopting the Administrative Budget for Fiscal Year 2023-24; or
Motion to approve staff's recommendation as presented.

I. BACKGROUND/ANALYSIS:

1. BACKGROUND:

On December 29, 2011, the California Supreme Court issued its decision in CRA v.

Matosantos, upholding Assembly Bill (“AB”)x1 26, which dissolved all redevelopment agencies in California, and overturning ABx1 27, the “voluntary alternative redevelopment program.” With the voluntary redevelopment program provided for in ABx1 27 having been ruled unconstitutional by the Court, all California redevelopment agencies were dissolved on February 1, 2012. Successor agencies are responsible for winding down the affairs of their respective, now-dissolved redevelopment agencies.

The City of Atwater (“City”) is acting as the Successor Agency to the Atwater Redevelopment Agency (“Successor Agency”) to manage and curtail the operation of the dissolved Atwater Redevelopment Agency (“Redevelopment Agency”).

As Successor Agency, the City is responsible for all of the assets, properties, contracts, leases, obligations, and records of the former Redevelopment Agency. For the Successor Agency to continue paying obligations of the former Redevelopment Agency, ABx1 26 requires the Successor Agency to prepare an annual Recognized Payment Obligation Schedule (“ROPS”) setting forth the Successor Agency’s payment

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

Agenda Report - Page 2

obligations for two six-month periods. The ROPS shall include any bonds, loans, payments required by the federal government, contracts, costs associated with Disposition and Development Agreements, and other similar obligations to third parties.

On September 22, 2015, Governor Brown signed Senate Bill (“SB”) 107, which went into effect immediately. SB 107 made several key changes to the Health and Safety Code (“HSC”) sections that establish the ROPS process (“the Dissolution Law”). On July 1, 2018, local oversight boards established by the Dissolution Law (specifically HSC Sections 34179 to 34181) to oversee successor agencies’ actions were replaced by countywide oversight boards. Oversight boards have broad authority to determine meeting dates at which successor agencies have to submit items, to set administrative budgets, to approve enforceable obligations, and otherwise to direct successor agencies to perform activities to wind down the former redevelopment agencies. For example, the oversight board consolidation led to earlier deadlines for successor agencies to prepare their ROPS.

1. ANALYSIS:

Recognized Obligation Payment Schedule
HSC Section 34177(l) requires the Successor Agency to prepare a ROPS showing all the obligations of the former Redevelopment Agency and the sources of funds for repaying obligations. This ROPS, covering the period July 1, 2023 through June 30, 2024 (“ROPS 23-24”), must be approved by the Countywide Oversight Board for the County of Merced (“Oversight Board”) and sent to the California State Department of Finance (“DOF”), State Controller’s Office, and the County Auditor-Controller no later than February 1, 2023. The Successor Agency may face a fine of $10,000 per day for ROPS submitted after this deadline.

DOF provided the Successor Agency with a partially completed ROPS form to standardize the form and make it consistent with DOF’s automated tracking system.

The Successor Agency requests a total of $1,116,824 from the Redevelopment Property Tax Trust Fund (“RPTTF,” the fund composed of property taxes distributed by the CAC to fund ROPS obligations) for obligations in Fiscal Year 2023-24. The obligations listed on the ROPS include funding for the following:
 Refunded Bond Debt Service Costs;
 Contracts for bond administration and disclosure services; and  Successor Agency Employee Costs - Administrative Costs.

Refunded Bond Debt Service Payments
The Successor Agency refunded its 1998, 2007A, and 2007B Tax Allocation Bonds

Agenda Report - Page 3

(“Original Bonds”). The resulting 2017A and 2017B Tax Allocation Refunding Bonds (“Refunding Bonds”) closed on September 14, 2017. The Successor Agency retired the ROPS items for the Original Bonds and replaced them with new ROPS items for the Refunding Bonds. A reduction in the total outstanding debt, representing the interest savings accomplished through the refunding, was captured in the Amended ROPS 17- 18B. The currently requested amounts do not include payments on the 2017B series of the Refunding Bonds as the final payment was made in the ROPS 19-20 period. Along with debt service, the Refunding Bonds require fees for bond administration and disclosure services. The 2017A Refunding Bonds are anticipated to be repaid 2026.

Administrative Budget
HSC Section 34177(j) requires the Successor Agency to prepare an Administrative Budget and submit it to the Oversight Board for approval. Per HSC Section 34177, each successor agency is limited to an administrative cost allowance of the greater of $250,000 or 3% of its approved non-administrative obligations in the previous ROPS year. The Successor Agency had $1,116,913 in non-administrative obligations approved in the ROPS period covering July 1, 2022 to June 30, 2023, allowing the Successor Agency to request the greater of $33,507 or $250,000. The Successor Agency anticipates needing $76,422 of the $250,000 minimum annual administration allocation described in HSC Section 34171 (b), as shown in the attached Administrative Budget. With the consolidation of the oversight boards, it is expected that expenditures may be more stringently monitored, and successor agencies may have to provide additional supporting documentation, especially for the administrative allowance.

SERAF Loan Repayment
The Successor Agency maintains a SERAF loan owed to the housing successor agency. SERAF loan payments in each fiscal year are limited to one half of the difference between the previous fiscal year’s residual revenue and the Fiscal Year 2012-13 residual revenue.

Residual revenue is the amount of RPTTF revenue—property taxes distributed by the CAC —available after deducting from gross revenue the following:
 the CAC’s and State Controller’s Office administrative fees,  pass through payments, and
 the amount approved by DOF to pay enforceable obligations.

The Successor Agency was approved to receive the full remaining loan balance of $77,491 in the prior ROPS year, 2022-23. Therefore the SERAF loan has been paid off and that item is retired in the current 2023-24 ROPS.

Cash Balances
The Report of Cash Balances in the current ROPS represents the Successor Agency’s cash balance as of June 30, 2021, as well as the inflow and outflow of funds during Fiscal Year 2020-21. Funds are being spent in a timely manner and are consistent with the approvals of the previous, local Oversight Board and DOF. The Cash Balances page helps the Successor Agency to identify other funds available to spend on

Agenda Report - Page 4

enforceable obligations, detailed as follows:
 The Successor Agency began with a balance of $104,885 of Other Funds. This included $18,123 requested for 18-19, $49,722 requested for 19-20, and $684 being requested for 20-21 other fund expenditures.
 The Successor Agency earned $159,469 in Fiscal Year 20-21 interest revenue and rent income.
 $684 in other funds revenue were expended in Fiscal Year 2020-21. The $684 were all other funds designated on ROPS 20-21 for Administration costs by DOF in their 20-21 determination letter.
 $104,201 were retained to meet the $18,123 of Other Funds requested for 21- 22, and $86,078 being requested for 22-23.
 The Successor Agency has $159,469 of available Other Fund revenue. DOF will determine how these other Funds will be used in their 23-24 determination letter.  The DOF re-allocated $9,360, $41,610, and $44,983 in property tax revenues received, but not spent, for obligations in Fiscal Year 2017-18, 2018-19, and 19- 20 respectively for expenditures in Fiscal Year 2020-21, 2021-22, and 2022-23 respectively.
 The Successor Agency expects DOF to re-allocate $9,335 in property tax revenues received, but not spent, for obligations in Fiscal Year 2020-21 for expenditures in Fiscal Year 2023-24.

ROPS 20-21 Prior Period Adjustment
As required by HSC Section 34186 (c), the Successor Agency prepared a reconciliation between approved and actual payments on enforceable obligations from the ROPS covering Fiscal Year 2020-21 and submitted this reconciliation to the CAC prior to October 1, 2022. The reconciliation showed a difference of $9,335 between approved and actual expenditures. As mentioned above, the Successor Agency expects DOF to re-allocate this amount for expenditures in Fiscal Year 2023-24.

Last and Final ROPS Option
Pursuant to HSC section 34191.6 (a), beginning January 1, 2016, agencies that have received a Finding of Completion may submit a Last and Final ROPS if all the following conditions are met:

1. The remaining debt is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules including, but not limited to, debt service, loan agreements, and contracts.

1. All remaining obligations have been previously listed on the ROPS and approved for payment by DOF pursuant to HSC section 34177 (m) or (o).

Agenda Report - Page 5

1. The agency is not a party to outstanding/unresolved litigation, except as specified in HSC section 34191.6 (a) (3).

A Last and Final ROPS will reduce the administrative burden on the Successor Agency and eliminate the need for annual Oversight Board meetings to approve the ROPS (The Oversight Board will still have to convene to approve property sales). The Successor Agency can amend the Last and Final ROPS twice. The Successor Agency meets the required conditions but prefers to maintain an annual ROPS. The Successor Agency has a real estate property that still needs to be sold, and it is possible that additional property disposition costs could arise. Furthermore, DOF has oversight over all Last and Final ROPS approvals and has been limiting the Successor Agency administrative allowance to approximately $5,000 per enforceable obligation.

Consolidated Oversight Board
As of July 1, 2018, the Merced County Consolidated Oversight Board was established pursuant to HSC Section 34179(j). The local oversight boards of all successor agencies within the County of Merced were dissolved. The Oversight Board has jurisdiction over six successor agencies, including the Atwater Successor Agency, and has broad authority to set administrative budgets, approve enforceable obligations, and otherwise direct the Successor Agency to perform activities to wind down the former redevelopment agencies. The ROPS 23-24 and Fiscal Year 2023-24 Administrative Budget prepared by the Successor Agency will be presented to the Oversight Board for approval on January 27, 2023.

All Successor Agency agenda items are to be submitted to Joy Otsuki via email, at least twenty calendar days from the Oversight Board meeting. In addition, the Successor Agency is required to approve all agenda items before they are considered by the Oversight Board. While it is not required for agenda items to be approved by the agenda deadline, the Oversight Board requires at least five business days to incorporate any changes made by the Successor Agency into the Oversight Board meeting agenda.

In order to meet the Oversight Board meeting deadline, the Successor Agency is to approve the ROPS 23-24 and Fiscal Year 2023-24 Administrative Budget during its December 12, 2022 board meeting. With the consolidation of the Oversight Boards, it is expected that expenditures may be more stringently monitored, and successor agencies may have to provide additional supporting documentation.

II. FISCAL IMPACTS:

Adoption and transmittal of the ROPS are necessary to receive $1,116,824 from the RPTTF to fund the Successor Agency’s financial obligation from July 1, 2023 through June 30, 2024.

Agenda Report - Page 6

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney.

IV. EXISTING POLICY:

This item is consistent with goal number one (1) of the City’s Strategic Plan: to ensure the City’s continued financial stability.

V. ALTERNATIVES:

VI. INTERDEPARTMENTAL COORDINATION:

This item was coordinated between the Project Accountant/Redevelopment Assistant and the Finance Director.

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 considered a project under provisions of Section 21065 of the Public Resources Code therefore not subject to analysis pursuant to the California Environmental Quality Act (CEQA) as this action will not directly or indirectly significantly affect the physical environment.

IX. STEPS FOLLOWING APPROVAL:

The Steps following approval will include submitting the ROPS and Administrative Budget to the Oversight Board for agenda consideration.

Submitted by:

Delilah Youmara, Finance Director
Approved by:

Lori Waterman, City Manager
Attachments:

Agenda Report - Page 7

1. 2 23-24 ROPS Admin Budget SA Resolution. No. 2022-5

2. 2a Exhibit A 23-24 ROPS Detail DRAFT

3. 2b Exhibit B 23-24 Admin Budget DRAFT

SUCCESSOR AGENCY

TO THE ATWATER

REDVELOPMENT AGENCY

RESOLUTION NO. SA 2022-5

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE

ATWATER REDEVELOPMENT AGENCY APPROVING

THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
2023-24 FOR JULY 2023 THROUGH JUNE 2024 AND
APPROVING THE SUCCESSOR AGENCY’S PROPOSED
ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2023-24
WHEREAS, the City of Atwater elected to serve as the Successor Agency to the former Atwater Redevelopment Agency (“Successor Agency”) pursuant to Assembly Bill x1 26, Assembly Bill 1484, and Senate Bill 107 (collectively the “Dissolution Act”) as codified in the California Health & Safety Code (“HSC”); and
WHEREAS, among the duties of successor agencies under the Dissolution Act is the preparation of a Recognized Obligation Payment Schedule (“ROPS”) for the ensuing two six-month periods for consideration by a local oversight board and the California Department of Finance (“DOF”) for purposes of administering the wind-down of financial obligations of the former Redevelopment Agency; and
WHEREAS, the Dissolution Law requires that the proposed ROPS be transmitted to the countywide oversight board for its approval and subsequently transmitted to the county auditor-controller, State Controller’s Office, and DOF for their consideration; and WHEREAS, the proposed ROPS 23-24 for Fiscal Year 2023-24, attached hereto as Exhibit “A”, has been prepared and is consistent with the provisions of the Dissolution Law and in the format made available by DOF; and
WHEREAS, HSC Section 34177(j) requires the Successor Agency to prepare a proposed administrative budget and submit it to the Countywide Oversight Board for the County of Merced (“Oversight Board”) for approval; and
WHEREAS, the Successor Agency’s proposed Fiscal Year 2023-24 Administrative Budget for the period from July 1, 2023 to June 30, 2024 has been reviewed, and by this Resolution the Successor Agency desires to approve such Administrative Budget and authorize submittal thereof to the Oversight Board for its review and approval; and WHEREAS, the Oversight Board will review the 2023-24 ROPS and Administrative Budget on January 27, 2023; and

Resolution No. 2022-5 Page 2
WHEREAS, the Successor Agency desires to approve the ROPS and transmit it to various parties as required by the Dissolution Law.

NOW, THEREFORE, the Successor Agency to the Atwater Redevelopment Agency does hereby resolve as follows:

Section 1. Recitals.

The Recitals set forth above are true and correct and incorporated herein by reference.

Section 2. Approval of ROPS 23-24.

The Successor Agency hereby approves and adopts the ROPS 23-24 covering the period of July 1, 2023 through June 30, 2024, in substantially the form attached hereto as Exhibit A, as required by the Dissolution Law. The Successor Agency also accepts administrative revisions made to the ROPS 23-24 in order to enable the Successor Agency to submit the ROPS 23-24 to DOF by the deadline of February 1, 2023.

Section 3. Approval of Successor Agency Fiscal Year 2023-24 Administrative Budget.

Pursuant to the Dissolution Law, the Successor Agency approves the Fiscal Year 2023- 24 Administrative Budget for the period July 1, 2023 to June 30, 2024 submitted herewith as Exhibit B, which is incorporated herein by this reference.

Section 4. Posting; Transmittal of ROPS to Appropriate Agencies.

The City Manager is hereby authorized and directed to post a copy of the ROPS on the City’s website and transmit a copy of the ROPS to the offices of the Merced County Auditor-Controller, the California State Controller’s Office, and the State of California Department of Finance upon the Oversight Board’s approval.

The foregoing resolution is hereby adopted this 12th day of December, 2022.

AYES:

NOES:

ABSENT:

ABSTAINED:

APPROVED:
_____________________________

PAUL CREIGHTON, MAYOR
ATTEST:
______________________________

LUCY ARMSTRONG, CITY CLERK

Resolution No. 2022-5 Page 3

EXHIBIT A

RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2023 TO JUNE 30, 2024

Resolution No. 2022-5 Page 4

EXHIBIT B

SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 2023 TO JUNE 30, 2024

Recognized Obligation Payment Scehdule (ROPS 23-24) - Summary Filed for the July 1, 2023 through June 30, 2024 Period Successor Agency: Atwater
County: Merced
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 23-24A Total
(July - December)
23-24B Total
(January - June) ROPS 23-24 Total
A Enforceable Obligations Funded as Follows (B+C+D): $ - $ - $ - B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G): $ 117,848 $ 998,976 $ 1,116,824 F RPTTF $ 41,426 $ 998,976 $ 1,040,402
G Administrative RPTTF $ 76,422 $ - $ 76,422
H Current Period Enforceable Obligations (A+E): $ 117,848 $ 998,976 $ 1,116,824 Certification of Oversight Board Chairman: Signature Title Pursuant to Section 34177 (o) of the Health and Safety Code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. Signature Title

Atwater Recognized Obligation Payment Schedule (ROPS 23-24) - ROPS Detail July 1, 2023 through June 30, 2024
(Report Amounts in Whole Dollars)

A B C D E F G H I J K L M N O P Q R S T U V W
Item #
Project Name/Debt
Obligation Obligation Type
Contract/Agre
ement
Execution
Date
Contract/Agre
ement
Termination
Date Payee Description/Project Scope Project Area
Total
Outstanding
Debt or
Obligation Retired
ROPS 23-
24 Total
23-24A (July - December)
23-24A
Total
23-24B (January - June)
23-24B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF
Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF
Admin
RPTTF
$ 4,399,577 $1,116,824 $ - $ - $ - $ 41,426 $ 76,422 $ 117,848 $ - $ - $ - $ 998,976 $ - $ 998,976 4 SERAF Housing fund
loan
SERAF/ERAF 5/10/2010 6/30/2026 Agency's
Housing Fund
Loan to help pay FY 09/10
SERAF
Atwater
Downtown
Redevelopmen
t Project Area
- Y
$ - $ - $ -
5 Contract for bond
administration
Fees 7/1/2007 7/1/2027 Bank of New
York Mellon
Trust Company
Professional Services Atwater
Downtown
Redevelopmen
t Project Area
15,150 N
$ 5,050 $ - 5,050 $ 5,050
7 Contract for disclosure
services
Fees 7/1/2012 6/1/2026 A.M. Peche &
Associates
Professional Services Atwater
Downtown
Redevelopmen
t Project Area
13,500 N
$ 3,500 3,500 $ 3,500 $ -
12 Succesor Agency
Employee Costs
Admin Costs 1/1/2011 6/1/2026 City of Atwater Administrative Costs Atwater Downtown
Redevelopmen
t Project Area
1,277,959 N
$ 76,422 76,422 $ 76,422 $ -
13 Property Disposition
Activities
Property
Dispositions
6/1/2012 6/1/2026 City of Atwater Sale of 2 properties from the LRPMP
Atwater
Downtown
Redevelopmen
t Project Area
0 Y
$ - $ - $ -
15 2017 TARB Series A Refunding
Bonds Issued
After 6/27/12
9/1/2017 6/1/2026 Bank of New
York Mellon
Trust Company
Refunding of 1998 & 2007
Bonds
Atwater
Downtown
Redevelopmen
t Project Area
3,092,968 N
$1,031,852 37,926 $ 37,926 993,926 $ 993,926

Atwater Recognized Obligation Payment Schedule (ROPS 23-24) - Report of Cash Balances July 1, 2020 through June 30, 2021
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet.

A B C D E F G H
ROPS 20-21 Cash Balances
(07/01/20 - 06/30/21)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued on or
before 12/31/10
Bonds issued on or
after 01/01/11
Prior ROPS RPTTF
and Reserve
Balances retained for
future period(s)
Rent,
Grants,
Interest, etc.

Non-Admin
and
Admin
1 Beginning Available Cash Balance (Actual 07/01/20)
RPTTF amount should exclude "A" period distribution amount 104,885 95,953
F: includes $86,078 requested for 19-20, $18,123
as adjusted by determination letter requested for 18-
19, and $684 is being requested for 17-18
G: last 3 years of PPA: 19-20 PPA: ($44,983), 18-
19 PPA ($41,610) and 17-18 PPA ($9,360)
2 Revenue/Income (Actual 06/30/21)
RPTTF amount should tie to the ROPS 19-20 total distribution from the County Auditor-Controller 159,469 1,154,941
F: 20-21 Interest revenue and rent income
G: RPTTF Revenue - 20-21A Dist + 20-21B Dist
3 Expenditures for ROPS 20-21 Enforceable Obligations
(Actual 06/30/21)
684 1,154,966
F: Matches other funds in PPA 20-21
G: Matches PPA 20-21
4 Retention of Available Cash Balance (Actual 06/30/21) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
104,201 86,593
F: 21-22 and 22-23 Other funds
G: 18-19 and 19-20 PPA
5 ROPS 20-21 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 20-21 PPA
form submitted to the CAC No entry required
9,335 G: 20-21 PPA
6 Ending Actual Available Cash Balance (06/30/21)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$ 0 $ 0 $ 0 $ 159,469 $ 0
F: Available Other Revenue
G: 16-17 PPA ($2,311) plus 17-18 PPA ($9,360)

Atwater Recognized Obligation Payment Schedule (ROPS 22-23) - Notes July 1, 2022 through June 30, 2023 Item # Notes/Comments

Prepared by: Prepared for: 11/15/22
FY 2023-24 Administrative Activities Personnel
County Auditor Controller correspondence/coordination Successor Agency Staff, RSG, Legal Counsel County Oversight Board correspondence/coordination Successor Agency Staff, RSG, Legal Counsel State correspondence/coordination Successor Agency Staff, RSG, Legal Counsel Prepare ROPS Successor Agency Staff, RSG, Legal Counsel Prepare admin budget Successor Agency Staff, RSG, Legal Counsel Management of dissolution activities Successor Agency Staff, RSG, Legal Counsel Annual Audit Price, Page & Company
Manage/monitor finances Successor Agency Staff, RSG
Prepare staff reports and resolutions Successor Agency Staff, RSG Successor Agency Administrative Budget Description Total Successor Agency Staff Costs Salaries, Wages, Benefits 29,422 RSG, Inc.

Advisory Services (ROPS Preparation, Legislative
Guidance, Property Disposition, Cash Flow Projections,
State/County Correspondence, Meeting Attendance,
etc.)
25,000
Badawi & Associates Audit Services 5,000
Union Pacific Railroad Landscaping Lease 2,000
Successor Agency Legal Counsel Legal Services 15,000
Grand Total 76,422
Atwater Successor Agency 2023-24 Administrative Budget