Agenda packet — Atwater City Council, January 28, 2026

In-person participation by the public will be permitted. In addition, remote public participation is available in the following way:

Submit a written public comment prior to the meeting: Public comments submitted to [email protected] by 1:00 p.m. on the day of the meeting will be distributed to the City Council and made part of the official minutes but will not be read out loud during the meeting.

Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Persons requesting accommodation should contact the City in advance of the meeting, and as soon as possible, at (209) 357-6241.

NOTICE OF JOINT SPECIAL MEETING

CITY COUNCIL AND PLANNING COMMISSION, SUCCESSOR AGENCY

TO THE ATWATER REDEVELOPMENT AGENCY, AND ATWATER FIRE

PROTECTION DISTRICT OF THE CITY OF ATWATER
NOTICE IS HEREBY GIVEN that a joint special meeting of the City Council and Planning Commission of the City of Atwater will be held on Wednesday, January 28, 2026, at 6:00 PM, or as soon thereafter as may be held. This meeting will be held in the Evelyn Chambers Room located at the Atwater Community Center, 760 E. Bellevue Road, Atwater, California.

AGENDA
CALL TO ORDER: (Closed Session) 5:15 PM
ROLL CALL: (City Council)
Ambriz ____, Cale ____, Raymond____, Rochester ____, Nelson ____ CLOSED SESSION:
• Conference with Legal Counsel - Anticipated Litigation - Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2):

Number of cases (1)
CALL TO ORDER: (Special Session) 6:00 PM
INVOCATION:

PLEDGE ALLEGIANCE TO THE FLAG:
1 City Council Agenda for Special Meeting of January 28, 2026 Page 2 ROLL CALL: (Special Session)
Ambriz ____, Cale ____, Raymond____, Rochester ____, Nelson ____ Conour ____, Gomez ____, Mokha ____, Sanchez-Garcia ____, Borgwardt ____ MAYOR OR CITY ATTORNEY REPORT OUT FROM CLOSED SESSION:

COMMENTS FROM THE PUBLIC:

NOTICE TO THE PUBLIC
At this time any person may comment on any item which is not on the agenda. You may state your name and address for the record; however, it is not required. Action will not be taken on an item that is not on the agenda. If it requires action, it will be referred to staff and/or placed on a future agenda. Please limit comments to a maximum of three (3) minutes.

CONSENT CALENDAR:

WARRANTS:

1. January 15, 2026
Staff’s Recommendation: Receive and file the reports as listed.

RESOLUTIONS:

2. Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2024/25 and Approving Budget Amendment Amending Fiscal Year 2025/2026 Budget to establish revenue and expenditure budget in the RSTP fund (City Manager Hoem)
Staff’s Recommendation: Adoption of Resolution No. 3586-26, authorizing and directing the City Manager to execute and file the Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2024/2025 and adoption of Resolution No. 3587-26, approving Budget Amendment No. 1 amending Fiscal Year 25-26 to establish a budget in the Regional Surface Transportation Program (RSTP) Fund, for the RSTP Exchange Funds Claim.

NOTICE TO THE PUBLIC
Background information has been provided on all matters listed under the Consent Calendar, and these items are considered to be routine. All items under the Consent Calendar are normally approved by one motion. If a Councilmember requests separate discussion on any item, that item will be removed from the Consent Calendar for separate action. 2 City Council Agenda for Special Meeting of January 28, 2026 Page 3

3. Approving Budget Amendment to Establish Revenue for a Rehabilitation Loan Repayment funded by the former Atwater Redevelopment Agency Low-and Moderate-Income Housing Fund, and authorizing the City Manager to execute the Assignment and Assumption Agreement (City Manager Hoem) Staff’s Recommendation: Adoption of Resolution No. SA 2026-2 approving Budget Amendment No. 4 amending Fiscal Year 2025-26 Budget to establish revenue budget for a rehabilitation loan repayment funded by the former Atwater Redevelopment Agency Low-and Moderate Income Housing Fund $61,500 and Cost Recovery for RSG Inc., Consulting services in the amount of $4,500.00; and Adoption of Resolution No. SA 2026-1 authorizing and directing the City Manager to execute the Assignment and Assumption Agreement and any other agreements or documents required for the transfer of certain real property on behalf of the Successor Agency.
***END OF CONSENT CALENDAR***
GENERAL PLAN UPDATE:

4. Review and discuss the Draft General Plan Land Use map, and City Council to provide direction to proceed with finalization of the General Plan and EIR (Ben Ritchie, DeNovo Planning Group)
CITY COUNCIL AND PLANNING COMMISSION REPORTS/UPDATES:
• Planning Commissioner Conour
• Planning Commissioner Gomez
• Planning Commissioner Mokha
• Planning Commissioner Sanchez - Garcia
• Planning Commissioner Borgwardt
• City Council Member Cale, District 1
• City Council Member Rochester, District 2
• City Council Member Ambriz, District 3
• City Council Member Raymond, District 4
• Mayor Nelson
CITY MANAGER REPORTS/UPDATES:

5. City Manager Hoem
3 City Council Agenda for Special Meeting of January 28, 2026 Page 4 ADJOURNMENT:

Dated this 22nd day of January 2026.
_______________________________
Mike Nelson, Mayor
pc: Mayor and City Council Members
Planning Commissioners
Merced Sun Star
Atwater Winton Times
City of Atwater Website
4 Anna Nicholas, Finance Director
Warrant Summary January 15, 2026
Prepared By: Joseph Murillo, Accounting Technician
Accounts Payable Warrant
Amount
1/15/2026 Warrant $ 256,878.70
Prewrittens (Checks Processed Between Warrants) $
Total Accounts Payable Warrants: $ 256,878.70
Additional Warrants
Date Description
1/14/2026 Turner Law
Amount
$ 1,435,000.00
Total Additional Warrants: $ 1,435,000.00
Grand Total: $ 1,691,878.70
Mark Borba, City Treasurer
5 Accounts Payable
Checks for Approval
User:

Printed:
jmurillo
1/15/2026 - 8:46 AM 7 i J 6Ptt'•u1JC• Ro_i ltd, /III 'c4er• CA 9Q1 City of
Atwater
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Check Number Check Date Fund Account Name Vendor Name Void Amount 0 01/14/2026 0003 General Fund Capital Osborn Park Renovation TURNER LAW 717,500.00 0 01/14/2026 1020 Parks and Recreation Fund Osborn Park Renovation TURNER LAW 717,500.00 Check Total: 1,435,000.00
Report Total: 1,435,000.00
AP-Checks for Approval (1/15/2026 - 8:46 AM) Page 1
6 Accounts Payable
Checks for Approval
User:

Printed:
jmurillo
1/15/2026 - 8:42 AM
its Pride City Wide
TO lelh vue Road, Miater CA $6~G1
Check Number Check Date Fund Account Name Vendor Name Void Amount 0 01/15/2026 0001 General Fund Rents & Leases UBEO WEST LLC 111.80 0 01/15/2026 0001 General Fund Rents & Leases UBEO WEST LLC 454.68 0 01/15/2026 0001 General Fund Rents & Leases UBEO WEST LLC 418.99 0 01/15/2026 0001 General Fund Rents & Leases UBEO WEST LLC 246.47 0 01/15/2026 0001 General Fund Rents & Leases UBEO WEST LLC 94.18 0 01/15/2026 1010 ARPA-American Rescue Plan Act City Bldg - Civic Center #2 UBEO WEST LLC 164.28 0 01/15/2026 6000 Water Enterprise Fund Rents & Leases UBEO WEST LLC 89.72 0 01/15/2026 0001 General Fund Rents & Leases UBEO WEST LLC 167.53 0 01/15/2026 6010 Sewer Enterprise Fund Rents & Leases UBEO WEST LLC 89.74 Check Total: 1,837.39
29815 01/15/2026 1014 CRP Carbon Reduction Prog Fund Project Retention AGEE CONSTRUCTION CORPORATION 50,000.37 29815 01/15/2026 0008 Measure V 20% AltemativeModes Project Retention AGEE CONSTRUCTION CORPORATION 16,968.91 29815 01/15/2026 0003 General Fund Capital Project Retention AGEE CONSTRUCTION CORPORATION 50,068.95 Check Total: 117,038.23
29816 01/15/2026 0001 General Fund Special Departmental Expense AIRGAS USA LLC 145.43 Check Total: 145.43
29817 01/15/2026 0001 General Fund Communications AT&TCALNET 285.94 Check Total: 285.94
29818 01/15/2026 0004 Public Safety Trans & Use Tax Machinery & Equipment AXON ENTERPRISE, INC. 8,656.70 Check Total: 8,656.70
29819 01/15/2026 6000 Water Enterprise Fund Professional Services BSK ASSOCIATES 95.82 29819 01/15/2026 6000 Water Enterprise Fund Professional Services BSK ASSOCIATES 222.40 Check Total: 318.22
29820 01/15/2026 0001 General Fund Special Departmental Expense CAL FARM SERVICES 101.24 -
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AP-Checks for Approval (1/15/2026 - 8:42 AM) Page 1
7 Check Number Check Date Fund Account Name Vendor Name Void Amount 29820 01/15/2026 0001 General Fund Special Departmental Expense CAL FARM SERVICES 115.26 Check Total: 216.50
29821 01/15/2026 6010 Sewer Enterprise Fund Castle Sewer Interceptor CALIFORNIA INDUSTRIAL RUBBER COMPAN 3,526.79 Check Total: 3,526.79
29822 01/15/2026 0001 General Fund Training ALEXA CASTANEDA 1,720.00 Check Total: 1,720.00
29823 01/15/2026 0001 General Fund Castle Park Deposits CELESTE CEJA 200.00 Check Total: 200.00
29824 01/15/2026 7000 Internal Service Fund Special Departmental Expense CINTAS CORP 30.00 29824 01/15/2026 1011 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 35.72 29824 01/15/2026 0001 General Fund Uniform & Clothing Expense CINTAS CORP 43.04 29824 01/15/2026 7000 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 30.00 29824 01/15/2026 6000 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 86.85 29824 01/15/2026 6010 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 74.21 29824 01/15/2026 7000 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 30.00 29824 01/15/2026 7000 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 30.00 Check Total: 359.82
29825 01/15/2026 0001 General Fund Training CITY OF FRESNO 623.00 29825 01/15/2026 0001 General Fund Training CITY OF FRESNO 623.00 Check Total: 1,246.00
29826 01/15/2026 0001 General Fund Travel/Conferences/Meetings CITY OF LOS BANOS 40.00 29826 01/15/2026 0001 General Fund Travel/Conferences/Meetings CITY OF LOS BANOS 40.00 Check Total: 80.00
29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 56.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 38.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 38.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 56.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 38.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 55.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 44.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 38.00 29827 01/15/2026 7000 Internal Service Fund Professional Services D & D PEST CONTROL 44.00 -~
AP-Checks for Approval (1/15/2026 - 8:42 AM) Page 2
8 Check Number Check Date Fund Account Name Vendor Name Void Amount Check Total: 407.00
29828 01/15/2026 1041 General Plan Update Fund Professional Services DE NOVO PLANNING GROUP 5,102.50 Check Total: 5,102.50
29829 01/15/2026 0001 General Fund Youth Basketball NICHOLE DENNO 80.00 Check Total: 80.00
29830 01/15/2026 1011 Gas Tax/Street Improvement Professional Services ELITE MAINTENANCE & TREE SERVICE 200.00 29830 01/15/2026 1011 Gas Tax/Street Improvement Professional Services ELITE MAINTENANCE & TREE SERVICE 2,720.00 29830 01/15/2026 1011 Gas Tax/Street Improvement Professional Services ELITE MAINTENANCE & TREE SERVICE 1,700.00 29830 01/15/2026 1011 Gas Tax/Street Improvement Professional Services ELITE MAINTENANCE & TREE SERVICE 850.00 Check Total: 5,470.00
29831 01/15/2026 0001 General Fund Uniform & Clothing Expense ELITE UNIFORMS 232.73 29831 01/15/2026 0001 General Fund Uniform & Clothing Expense ELITE UNIFORMS 160.20 29831 01/15/2026 0001 General Fund Uniform & Clothing Expense ELITE UNIFORMS 208.36 29831 01/15/2026 0001 General Fund Uniform & Clothing Expense ELITE UNIFORMS 296.58 29831 01/15/2026 0001 General Fund Uniform & Clothing Expense ELITE UNIFORMS 357.18 29831 01/15/2026 0001 General Fund Uniform & Clothing Expense ELITE UNIFORMS 478.94 Check Total: 1,733.99
29832 01/15/2026 0004 Public Safety Trans & Use Tax Rents & Leases ENTERPRISE FM TRUST 326.18 Check Total: 326.18
29833 01/15/2026 0001 General Fund Training FRESNO CITY COLLEGE 149.00 Check Total: 149.00
29834 01/15/2026 0001 General Fund Special Departmental Expense HORIZON DISTRIBUTORS INC 16.01 Check Total: 16.01
29835 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense JAM SERVICES INC 147.02 Check Total: 147.02
29836 01/15/2026 7000 Internal Service Fund Professional Services JANI TEK CLEANING SOLUTIONS 14,281.65 Check Total: 14,281.65
29837 01/15/2026 6000 Water Enterprise Fund Small Tools KELLOGG SUPPLY 165.56 —
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AP-Checks for Approval (1/15/2026 - 8:42 AM) Page 3
9 Check Number Check Date Fund Account Name Vendor Name Void Amount Check Total: 165.56
29838 01/15/2026 0004 Public Safety Trans & Use Tax Professional Services LEXISNEXIS COPLOGIC SOLUTIONS INC 988.80 Check Total: 988.80
29839 01/15/2026 0001 General Fund Special Departmental Expense LN CURTIS & SONS 334.95 29839 01/15/2026 0001 General Fund Special Departmental Expense LN CURTIS & SONS 2,094.53 Check Total: 2,429.48
29840 01/15/2026 0010 Measure V Regional Fund Buhach Widening MARK THOMAS & COMPANY, INC 6,028.41 29840 01/15/2026 0010 Measure V Regional Fund Bellevue Road Realignment MARK THOMAS & COMPANY, INC 29,551.90 Check Total: 35,580.31
29841 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense MERGED IRRIGATION - UGSA 5.90 Check Total: 5.90
29842 01/15/2026 7000 Internal Service Fund Professional Services MISTER CAR WASH 528.00 Check Total: 528.00
29843 01/15/2026 0001 General Fund Professional Services MUNISERVICES 23.60 Check Total: 23.60
29844 01/15/2026 7000 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 63.36 29844 01/15/2026 7000 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 8.27 29844 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 75.00 29844 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 9.50 29844 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 11.94 29844 01/15/2026 6010 Sewer Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 52.03 29844 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 86.64 29844 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 52.17 29844 01/15/2026 7000 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 9.77 Check Total: 368.68
29845 01/15/2026 7000 Internal Service Fund Operations & Maintenance PACIFIC GAS & ELECTRIC 1,207.80 29845 01/15/2026 6010 Sewer Enterprise Fund Utilities PACIFIC GAS & ELECTRIC 42.98 Check Total: 1,250.78
29846 01/15/2026 0001 General Fund Planning Deposits PRECISION CIVIL ENGINEERING, INC. 983.75 -
AP-Checks for Approval (1/15/2026 - 8:42 AM) Page 4
10 Check Number Check Date Fund Account Name Vendor Name Void Amount Check Total: 983.75
29847 01/15/2026 6010 Sewer Enterprise Fund Special Departmental Expense PUMP PROS INC 1,726.65 29847 01/15/2026 6010 Sewer Enterprise Fund Professional Services PUMP PROS INC 1,200.00 Check Total: 2,926.65
29848 01/15/2026 0001 General Fund Professional Services QUAD KNOPF 4,488.60 29848 01/15/2026 0001 General Fund Professional Services QUAD KNOPF 506.40 29848 01/15/2026 0001 General Fund Professional Services QUAD KNOPF 2,394.20 29848 01/15/2026 0001 General Fund Professional Services QUAD KNOPF 1,941.20 29848 01/15/2026 0001 General Fund Professional Services QUAD KNOPF 1,826.50 Check Total: 11,156.90
29849 01/15/2026 3065 Low&Mod Inc Housing Asset Func Professional Services RSG INC 717.50 29849 01/15/2026 3064 RDVLPMNT Obligation Retiremer Professional Services RSG INC 612.50 29849 01/15/2026 0001 General Fund Professional Services RSG INC 146.25 Check Total: 1,476.25
29850 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense SAFE-T-LITE 392.57 Check Total: 392.57
29851 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense SHERWIN-WILLIAMS CO. 228.35 Check Total: 228.35
29852 01/15/2026 0001 General Fund Travel/Conferences/Meetings JANASOUSA 500.71 Check Total: 500.71
29853 01/15/2026 6000 Water Enterprise Fund Professional Services STATE WATER RESOURCES CONTROL BOARD 31,930.52 Check Total: 31,930.52
29854 01/15/2026 0001 General Fund Professional Services STERICYCLE INC 41.42 Check Total: 41.42
29855 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense SUNBELT RENTALS INC 97.02 Check Total: 97.02
29856 01/15/2026 0001 General Fund Professional Services TRANSUNION RISKAND ALTERNATIVE DATA 115.00 ./
AP-Checks for Approval (1/15/2026 - 8:42 AM) Page 5
11 Check Number Check Date Fund Account Name Vendor Name Void Amount Check Total: 115.00 r29857 01/15/2026 6010 Sewer Enterprise Fund Castle Sewer Interceptor UNITED RENTALS (NORTH AMERICA) INC 1,033.13 Check Total: 1,033.13 _
29858 01/15/2026 0001 General Fund Rents & Leases US BANK EQUIPMENT FINANCE 137.14 Check Total: 137.14
29859 01/15/2026 0001 General Fund Community Center Rental AE LEE VUE 70.00 29859 01/15/2026 0001 General Fund Community Center Deposits AE LEE VUE 210.00 29859 01/15/2026 0001 General Fund Community Center Deposits AE LEE VUE 350.00 Check Total: 630.00
29860 01/15/2026 0001 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 4.33 29860 01/15/2026 0001 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 31.36 29860 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 105.25 29860 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 107.94 29860 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 83.37 29860 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 143.95 29860 01/15/2026 1011 Gas Tax/Street Improvement Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 4.65 29860 01/15/2026 6000 Water Enterprise Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 57.82 Check Total: 538.67 '
29861 01/15/2026 6010 Sewer Enterprise Fund Special Departmental Expense WINTON HARDWARE 5.14 Check Total: 5.14
Report Total: 256,878.70
AP-Checks for Approval (1/15/2026 - 8:42 AM) Page 6
12 CITY COUNCIL

AGENDA REPORT

MEETING
DATE:

January 28, 2026
TO: Mayor and City Council
FROM: Christopher Hoem, City Manager

PREPARED
BY:

Julia Coronado, Project Accountant
SUBJECT: Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2024/25 and Approving Budget Amendment Amending Fiscal Year 2025/2026 Budget to establish revenue and expenditure budget in the RSTP fund (City Manager Hoem)

RECOMMENDED COUNCIL ACTION
Adoption of Resolution No. 3586-26, authorizing and directing the City Manager to execute and file the Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2024/2025 and adoption of Resolution No. 3587-26, approving Budget Amendment No. 1 amending Fiscal Year 25-26 to establish a budget in the Regional Surface Transportation Program (RSTP) Fund, for the RSTP Exchange Funds Claim.

I. BACKGROUND/ANALYSIS:

Annually, the Merced County Association of Governments (MCAG) provides the City of Atwater (“City”) the opportunity to participate in the exchange of unobligated federal transportation funds for state funds through the Regional Surface Transportation Program (RSTP) Exchange Funds Program. The exchange of federal funds for state funds allows the City greater flexibility in the use of transportation revenues.

The claim form requires the City to identify eligible transportation purposes as defined under Sections 133(b) and 133(c) of Title 23 of the United States Code and Article XIX of the California State Constitution, as implemented in accordance with Section 182.6(d)(1) of the Streets and Highway Code. At the direction of the City Council during its January 12, 2026 meeting, the City is not committing the funds to a single, specific project at this time and will instead identify eligible transportation purposes that meet program requirements.

The City of Atwater will submit the required claim form(s) to the Regional Surface Transportation Program to secure these exchange funds for future eligible

CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Brian Raymond
John Cale Kalisa Rochester
13 Agenda Report - Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2024/25 and Approving Budget Amendment Amending Fiscal Year 2025/2026 Budget to establish revenue and expenditure budget in the RSTP fund (City Manager Hoem) Page 2 transportation needs. Staff will return to the City Council at the February 9, 2026 meeting with a proposed list of transportation priorities that may be funded using the RSTP exchange funds for Council consideration and direction.

The allocation of RSTP exchange funds to each jurisdiction is based on population. In order to receive these funds in a timely manner, the City must submit an exchange claim form along with an authorizing resolution adopted by the City Council. The claim form and resolution must be filed with MCAG for processing. The MCAG Governing Board adopted its resolution approving the disbursement of FY 2024/2025 RSTP funds at its May 22, 2025 meeting.

II. FISCAL IMPACTS:

By adopting this resolution and filing an exchange form, the City will receive $454,400.00. This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney’s Office IV. EXISTING POLICY:

This item is consistent with goal two (2) of the 2026-2030 City's Strategic Plan: to promote safety, stability, and quality of life.

V. ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

This item was coordinated by the Community Development Department, Public Work's Department and City Manager's office.

VII. PUBLIC PARTICIPATION:

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

VIII. ENVIRONMENTAL REVIEW:

This budget amendment and funds claim is exempt under the provisions of the California Environmental Quality Act (“CEQA”). As the project progresses, environmental review will be done as necessary.

IX. STEPS FOLLOWING APPROVAL:

Upon adoption of the resolution, the City Manager shall execute and file the Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2024/2025.
14 Agenda Report - Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2024/25 and Approving Budget Amendment Amending Fiscal Year 2025/2026 Budget to establish revenue and expenditure budget in the RSTP fund (City Manager Hoem) Page 3 Submitted by:

Chris Hoem, City Manager
Attachments:

1. Resolution No XXXX-26 Authorizing RSTP Submittal for FY 24-25

2. 2- City of Atwater FY 24-25 RSTP Claim Form

3. Resolution No. XXXX-26 Budget Amendment No X RSTP FY 2024-25 Claim form 15 CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. XXXX-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATWATER AUTHORIZING THE CITY MANAGER TO

EXECUTE AND FILE THE REGIONAL SURFACE

TRANSPORTATION PROGRAM (RSTP) EXCHANGE FUNDS
CLAIM FOR FISCAL YEAR 2024-25
WHEREAS, the Merced County Association of Governments (MCAG) and the California Department of Transportation (CalTrans) have entered into a Standard Agreement contract to exchange unobligated balances of federally funded Regional Surface Transportation Program (RSTP) funds with non-federal State Highway Account funds; and WHEREAS, CalTrans Division of Programming releases a 5-year ESTIMATE of RSTP Exchange Program apportionments for inclusion in the Federal Transportation Improvement Program (FTIP) Programming document every 2-years to California Metropolitan Planning Organizations (MPOs); and
WHEREAS, MCAG is the designated MPO for Merced County; and WHEREAS, the Annual RSTP Exchange Program fund apportionment is an estimate and subject to change during the fiscal year (FY) due to many Federal Surface Transportation Bill variables including the annual appropriations act as well as other Congressional action (i.e. rescissions); and
WHEREAS, a FINAL RSTP Exchange apportionment amount is published at the end of the FY 24/25 and can be different than the ESTIMATE RSTP Exchange apportionment figure; and WHEREAS, annually, CalTrans sends MCAG a Standard Agreement contract that includes an RSTP Exchange Program apportionment figure; and
WHEREAS, MCAG applies an RSTP population based distribution formula using current Department of Finance (DOF) population estimates (May 2024) to the RSTP apportionment to determine the amount of RSTP Exchange funds to be distributed to MCAG member jurisdictions; and
WHEREAS, the City of Atwater has an ESTIMATE RSTP Exchange Program fund apportionment amount available to claim in FY 24/25 of $454,400.00; and 16 Resolution No. XXXX-26 Page 2
WHEREAS, payment of the ESTIMATE RSTP Exchange fund claim will be subject to all conditions specified in the fully executed standard contract agreement between MCAG and CalTrans, as well as the MCAG RSTP Exchange claim form requirements: Projects to be funded with this claim are only those projects that are defined under Sections 133(b) and 133(c) of Title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code; and
WHEREAS, if the FINAL RSTP Exchange apportionment figure is higher for FY 24/25 than the ESTIMATE RSTP Exchange apportionment figure, CalTrans would have to revise the RSTP Exchange Standard Agreement contract with the higher RSTP figure before MCAG could instruct the Merced County Auditor Controller’s Officer to distribute a greater amount of RSTP Exchange Program funds to member agencies, than identified in this resolution; and WHEREAS, if the FINAL RSTP Exchange apportionment figure is lower for FY 24/25 than the ESTIMATE RSTP Exchange apportionment amount, CalTrans does not have to revise the RSTP Exchange contract with the lower amount before MCAG could recalculate the available RSTP Exchange Program funds using the same population based formula and then instruct the Merced County Auditor Controller’s Officer to distribute the lower FY 24/25 FINAL RSTP Exchange program fund amount to member agencies; and
WHEREAS, the City of Atwater has established a special gas tax street improvement fund as a requirement to receive the RSTP Exchange Program funds; and WHEREAS, it is deemed in the best interest of the City of Atwater that the City Manager be authorized to sign the FY 24/25 RSTP Exchange Program fund claim form and to submit said claim form to MCAG for processing.

NOW, THEREFORE, BE IT RESOLVED that the City Manager is authorized and directed to sign and file the above described FY 24/25 RSTP Exchange Program fund claim on behalf of the City of Atwater in the amount of $454,400.00.

The foregoing resolution is hereby adopted this 28th day of January, 2026.

AYES:

NOES:

ABSENT: APPROVED:
_____________________________
MICHAEL G. NELSON, MAYOR
ATTEST:
______________________________

KORY BILLINGS, CITY CLERK
17 PH: 209.723.3153
FAX: 209.723.0322
www.mcagov.org
369 W, 18th Street
Merced, Ca. 93540
Partnering for Regional Solutions
Claim to the Merced County Association of Governments
for Regional Surface Transportation Program (RSTP) Funds in Exchange for State Highway Account Funds FY 2024/2025
Project Cost of
Project
Air
Quality
Exempt

1. Road improvements, such as striping, overlay, reconstruction, widening, etc.
$454,400  

2. $  

3. $  

4. $  
FY 24/25 Claim Amount: $454,400.00
Claimant: City of Atwater
Claim Guidelines:

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

Claim Instructions:

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

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

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

4. If the project is a capacity expanding project and the air quality conformity analysis has been completed for the project as required check the “Air Quality” box. () 18 It is understood by this claimant (City of Atwater) that payment of this claim is subject to approval by the MCAG Governing Board and must be in accordance with the MCAG and Caltrans Agreement. Said monies (and the interest earned on such monies subsequent to allocation) will be used only for those purposes for which the claim is approved.

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

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

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

Authorized Representative:

Signature
Print Name
Title
Date
Signature of Chief Financial Officer
Print Name
19 RESOLUTION NO. XXXX-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATWATER APPROVING BUDGET AMENDMENT NO. X
AMENDING 25-26 FISCAL YEAR BUDGET REGARDING

REGIONAL SURFACE TRANSPORTATION PROGRAM (RSTP)
FUND
WHEREAS, the City Council of the City of Atwater adopted Resolution No. 3538-25 adopting the 2025-26 Fiscal Year Budget on June 9, 2025; and
WHEREAS, from time to time, and in order to operate effectively, it is necessary to amend said budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Atwater does hereby approve Budget Amendment No. X to the 2025-256 Fiscal Year Budget as follows:

SECTION 1: Increasing budget appropriation in the RSTP Fund for Fiscal Year 2025-2026.

Establish Budget
(Revenue) 1017-0000-3147 RSTP $454,400
Establish Budget
(Expense) 1017-1080-XXXX RSTP-Road improvements, such as striping, overlay, reconstruction, widening, etc. $454,400
BE IT FURTHER RESOLVED that a copy of this resolution appends to the original budget document that is available in the Finance Department and the City Clerk’s office.

The foregoing resolution is hereby adopted this 28th day of January 2026.

AYES:

NOES:

ABSENT:

APPROVED:
________________________________
MICHAEL G. NELSON, MAYOR
ATTEST:
______________________________
KORY J. BILLINGS, CITY CLERK

CITY COUNCIL
OF THE

CITY OF ATWATER
20 SUCCESSOR AGENCY TO

THE REDEVELOPMENT

AGENCY AGENDA REPORT

MEETING
DATE:

January 28, 2026
TO: Chair and Board of Directors of the Atwater Housing Successor FROM: Christopher Hoem, City Manager

PREPARED
BY:

Julia Coronado, Project Accountant
SUBJECT: Approving Budget Amendment to Establish Revenue for a Rehabilitation Loan Repayment funded by the former Atwater Redevelopment Agency Low-and Moderate Income Housing Fund, and authorizing the City Manager to execute the Assignment and Assumption Agreement (City Manager Hoem)

RECOMMENDED COUNCIL ACTION
Adoption of Resolution No. SA 2026-2 approving Budget Amendment No. 4 amending Fiscal Year 2025-26 Budget to establish revenue budget for a rehabilitation loan repayment funded by the former Atwater Redevelopment Agency Low-and Moderate Income Housing Fund $61,500 and Cost Recovery for RSG Inc., Consulting services in the amount of $4,500.00; and
Adoption of Resolution No. SA 2026-1 authorizing and directing the City Manager to execute the Assignment and Assumption Agreement and any other agreements or documents required for the transfer of certain real property on behalf of the Successor Agency.

I. BACKGROUND/ANALYSIS:

The Assignor is the owner in fee of that certain real property located in the City of Atwater, County of Merced, State of California described in Exhibit “A” attached hereto and made a part hereof (the “Property”).

The Assignor purchased the property from the former Redevelopment Agency of the City of Atwater (“Agency”), and in connection with said purchase entered into that certain Rehabilitation Loan, Occupancy, Refinancing and Resale Restrictions Agreement with Option to Purchase, dated December 30, 2009, and recorded December 31, 2009 as Instrument No. 2009-062622, in the Official Records of the County of Merced, pursuant to which the Agency agreed to provide rehabilitation assistance to the Assignor to assist Assignor to rehabilitate the Property (the “Resale Restriction Agreement”). The Resale Restriction Agreement, among other terms, imposes affordability covenants on the Property and requires the Assignor to reside at the Property as Assignor’s principal place

CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Brian Raymond
John Cale Kalisa Rochester
21 Agenda Report - Approving Budget Amendment to Establish Revenue for a Rehabilitation Loan Repayment funded by the former Atwater Redevelopment Agency Low-and Moderate Income Housing Fund, and authorizing the City Manager to execute the Assignment and Assumption Agreement (City Manager Hoem) Page 2
of residence.

Pursuant to Assembly Bill 26 from the 2011-2012 First Extraordinary Session of the California Legislature, all redevelopment agencies dissolved on February 1, 2012.

Pursuant to Health and Safety Code section 34176(b)(2), and by On January 23, 2012, the City of Atwater City Council (“City Council”) adopted Resolution No. 2644-12 on January 23, 2012, electing for the City of Atwater to serve as the Successor Agency to Agency. The Successor Agency elected to be the “housing successor” to the Agency, enabling Successor Agency to retain the housing assets and functions previously performed by the Agency, and allowing the Successor Agency to enforce affordability covenants and related activities pursuant to applicable provisions of the Community Redevelopment Law (Section 33000, et seq.). Administration of the Resale Restriction Agreement is a housing function of the Agency that was transferred to the Successor Agency.

The Assignee is acquiring the Property from Assignor and has met all of Successor Agency’s requirements to qualify therefor. Assignor and Assignee desire that in connection with the sale of the Property from Assignor to Assignee that Successor Agency, as beneficiary under the Resale Restriction Agreement, consent to the transfer of the obligation of the Resale Restriction Agreement from Assignor to Assignee.

The Successor Agency will consent to such acquisition provided that Assignee assumes the obligations of Assignor under the Resale Restriction Agreement, as set forth in this Agreement.

II. FISCAL IMPACTS:

Upon approval of the budget amendment, Revenue Budget will be established in account number 3065-0000-6030 and 3065-0000-6091.

III. LEGAL REVIEW:

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

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 solvency.

V. ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

This item has been routed internally for review.
22 Agenda Report - Approving Budget Amendment to Establish Revenue for a Rehabilitation Loan Repayment funded by the former Atwater Redevelopment Agency Low-and Moderate Income Housing Fund, and authorizing the City Manager to execute the Assignment and Assumption Agreement (City Manager Hoem) Page 3
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:

Upon City Council Approval, City Council will direct the City Manager or his designee to execute Assignment and Assumption Agreement.

Submitted by:

Chris Hoem, City Manager
Attachments:

1. Resolution No. SA 2026-2 Approves Budget Amendment No. 4

2. Resolution No. SA 2026-1

3. Assignment and Assumption Agreement - 1786 Eucalyptus Ave-c1 23 SUCCESSOR AGENCY TO THE

HOUSING SUCCESSOR OF THE

CITY OF ATWATER
RESOLUTION NO. SA 2026-2

A RESOLUTION OF THE CITY OF ATWATER AS

THE SUCCESSOR AGENCY TO THE ATWATER

HOUSING SUCCESSOR APPROVING BUDGET
AMENDMENT NO. 4 AMENDING 2025-26 FISCAL

YEAR BUDGET TO ESTABLISH REVENUE

BUDGET REGARDING A REHABILITATION

LOAN REPAYMENT FUNDED BY THE FORMER
ATWATER REDEVELOPMENT AGENCY LOWAND MODERATE INCOME HOUSING FUND WHEREAS, the City Council of the City of Atwater adopted Resolution No. 3538-25 adopting the Fiscal Year 2025-26 Budget on June 9, 2025; and WHEREAS, from time to time, and in order to operate effectively, it is necessary to amend said budget.

NOW, THEREFORE, BE IT RESOLVED that the Successor Agency to the Housing Successor does hereby approve Budget Amendment No. 4 to the Fiscal Year 2025-26 Budget as follows:

SECTION 1: Establishing budget in Low and Moderate Income Housing Asset Fund for Fiscal Year 2025-26.

Establish Budget
(Revenue)
3065-0000-6030 Loan Repayments $61,500.00
Establish Budget
(Revenue)
3065-0000-6091 Other Revenue
(cost recovery for consultant
fees)
$4,500.00
BE IT FURTHER RESOLVED that a copy of this resolution appends to the original budget document that is available in the Finance Department and the City Clerk’s office.

The foregoing resolution is hereby adopted this 28th day of January 2026. 24 Resolution No. SA 2026-2 Page 2
AYES:

NOES:

ABSENT:

APPROVED:
_______________________________
MICHAEL G. NELSON, BOARD CHAIR
ATTEST:
_________________________________
KORY J. BILLINGS, BOARD CLERK
25 SUCCESSOR AGENCY

TO THE ATWATER

REDEVELOPMENT AGENCY
RESOLUTION NO. SA 2026-1

A RESOLUTION OF THE CITY OF ATWATER AS

THE SUCCESSOR AGENCY TO THE ATWATER

HOUSING SUCCESSOR AUTHORIZING THE

CITY MANAGER TO EXECUTE THE

ASSIGNMENT AND ASSUMPTION AGREEMENT

AND ANY OTHER AGREEMENTS OR

DOCUMENTS REQUIRED FOR THE TRANSFER

OF CERTAIN REAL PROPERTY
WHEREAS, Assignor is the owner in fee of that certain real property located in the City of Atwater, County of Merced, State of California described in Exhibit “A” attached hereto and made a part hereof (the “Property”).; and
WHEREAS, Assignor purchased the property from the former Redevelopment Agency of the City of Atwater (“Agency”), and in connection with said purchase entered into that certain Rehabilitation Loan, Occupancy, Refinancing and Resale Restrictions Agreement with Option to Purchase, dated December 30, 2009, and recorded December 31, 2009 as Instrument No. 2009-062622, in the Official Records of the County of Merced, pursuant to which the Agency agreed to provide rehabilitation assistance to the Assignor to assist Assignor to rehabilitate the Property (the “Resale Restriction Agreement”). The Resale Restriction Agreement, among other terms, imposes affordability covenants on the Property and requires the Assignor to reside at the Property as Assignor’s principal place of residence; and
WHEREAS, pursuant to Assembly Bill 26 from the 2011-2012 First Extraordinary Session of the California Legislature, all redevelopment agencies dissolved on February 1, 2012. Pursuant to Health and Safety Code section 34176(b)(2), and by On January 23, 2012, the City of Atwater City Council (“City Council”) adopted Resolution No. 2644-12 on January 23, 2012, electing for the City of Atwater to serve as the Successor Agency to Agency. The Successor Agency elected to be the “housing successor” to the Agency, enabling Successor Agency to retain the housing assets and functions previously performed by the Agency, and allowing the Successor Agency to enforce affordability covenants and related activities pursuant to applicable provisions of the Community 26 Resolution No. SA 2026-1 Page 2
Redevelopment Law (Section 33000, et seq.). Administration of the Resale Restriction Agreement is a housing function of the Agency that was transferred to the Successor Agency.

WHEREAS, Assignee is acquiring the Property from Assignor and has met all of Successor Agency’s requirements to qualify therefor. Assignor and Assignee desire that in connection with the sale of the Property from Assignor to Assignee that Successor Agency, as beneficiary under the Resale Restriction Agreement, consent to the transfer of the obligation of the Resale Restriction Agreement from Assignor to Assignee.

WHEREAS, Successor Agency will consent to such acquisition provided that Assignee assumes the obligations of Assignor under the Resale Restriction Agreement, as set forth in this Agreement
NOW, THEREFORE, BE IT RESOLVED Successor Agency, Assignor and Assignee agree as follows:

1. Effective Date. As used in this Agreement, the “Effective Date” shall be the date of recordation of this Agreement.

2. Assignment by Assignor. As of the Effective Date, Assignor assigns all of its rights and obligations under the Resale Restriction Agreement to Assignee.

3. Assumption by Assignee. As of the Effective Date, Assignee assumes and agrees to be bound by the Resale Restriction Agreement. Assignee shall fully and faithfully pay, perform and discharge, as and when payment, performance and discharge are due, all of the obligations of Assignor under the Resale Restriction Agreement, and each of them.

5. Entire Agreement. This Agreement contains the entire agreement among Successor Agency, Assignor and Assignee with respect to the subject matter hereof and supersedes all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto. This Agreement shall bind and inure to the benefit of Successor Agency, Assignor and Assignee and their respective personal representatives, heirs, successors and assigns. This Agreement shall be governed and construed in accordance with the laws of the State of California.
27 Resolution No. SA 2026-1 Page 3
The foregoing resolution is hereby adopted this 28th day of January 2026.

AYES:

NOES:

ABSENT:

APPROVED:
_______________________________
MICHAEL G. NELSON, BOARD CHAIR
ATTEST:
_________________________________
KORY J. BILLINGS, BOARD CLERK
28 83744.00103\44516769.2
1 Recording Requested By
And When Recorded Mail To:

City of Atwater
1160 Fifth Street
Atwater, CA 95301
Attn: City Clerk
APN: 003-022-046 (Space above for Recorder’s use)
(Exempt from Recording Fee Per Gov. Code § 6103 and 27383)

ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and Assumption Agreement (“Agreement”), is made as of January 28, 2026, by and among the City of Atwater, a California municipal corporation (“Successor Agency”), Jean Patricia Buck, Successor Trustee of The Katharine A. Ostrander Trust Agreement dated July 3, 1996 who acquired title as Katharine Ostrander, as Trustee under the terms of such Declaration of Trust, and to my successors as trustee, under the terms of such Declaration of Trust (“Assignor”), and Ernest Beltran, an unmarried man (“Assignee”).

W I T N E S S E T H:

A. WHEREAS, Assignor is the owner in fee of that certain real property located in the City of Atwater, County of Merced, State of California described in Exhibit “A” attached hereto and made a part hereof (the “Property”).

B. WHEREAS, Assignor purchased the property from the former Redevelopment Agency of the City of Atwater (“Agency”), and in connection with said purchase entered into that certain Rehabilitation Loan, Occupancy, Refinancing and Resale Restrictions Agreement with Option to Purchase, dated December 30, 2009, and recorded December 31, 2009 as Instrument No. 2009-062622, in the Official Records of the County of Merced, pursuant to which the Agency agreed to provide rehabilitation assistance to the Assignor to assist Assignor to rehabilitate the Property (the “Resale Restriction Agreement”). The Resale Restriction Agreement, among other terms, imposes affordability covenants on the Property and requires the Assignor to reside at the Property as Assignor’s principal place of residence. 29 83744.00103\44516769.2
2 C. WHEREAS, pursuant to Assembly Bill 26 from the 2011-2012 First Extraordinary Session of the California Legislature, all redevelopment agencies dissolved on February 1, 2012. Pursuant to Health and Safety Code section 34176(b)(2), and by On January 23, 2012, the City of Atwater City Council (“City Council”) adopted Resolution No. 2644-12 on January 23, 2012, electing for the City of Atwater to serve as the Successor Agency to Agency. The Successor Agency elected to be the “housing successor” to the Agency, enabling Successor Agency to retain the housing assets and functions previously performed by the Agency, and allowing the Successor Agency to enforce affordability covenants and related activities pursuant to applicable provisions of the Community Redevelopment Law (Section 33000, et seq.). Administration of the Resale Restriction Agreement is a housing function of the Agency that was transferred to the Successor Agency.

E. WHEREAS, Assignee is acquiring the Property from Assignor and has met all of Successor Agency’s requirements to qualify therefor. Assignor and Assignee desire that in connection with the sale of the Property from Assignor to Assignee that Successor Agency, as beneficiary under the Resale Restriction Agreement, consent to the transfer of the obligation of the Resale Restriction Agreement from Assignor to Assignee.

F. WHEREAS, Successor Agency will consent to such acquisition provided that Assignee assumes the obligations of Assignor under the Resale Restriction Agreement, as set forth in this Agreement.

NOW THEREFORE, Successor Agency, Assignor and Assignee agree as follows:

1. Effective Date. As used in this Agreement, the “Effective Date” shall be the date of recordation of this Agreement.

2. Assignment by Assignor. As of the Effective Date, Assignor assigns all of its rights and obligations under the Resale Restriction Agreement to Assignee.

4. Consent by Successor Agency. As of the Effective Date, Successor Agency consents to the transfer of the Property by Assignor to Assignee. Such consent by Successor Agency shall not constitute a consent to any further or subsequent sale, conveyance or transfer by Assignee of the Property, or any part thereof, or any interest therein.
30 83744.00103\44516769.2
3 5. Entire Agreement. This Agreement contains the entire agreement among Successor Agency, Assignor and Assignee with respect to the subject matter hereof and supersedes all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto. This Agreement shall bind and inure to the benefit of Successor Agency, Assignor and Assignee and their respective personal representatives, heirs, successors and assigns. This Agreement shall be governed and construed in accordance with the laws of the State of California.

IN WITNESS WHEREOF, Successor Agency, Assignee and Assignee have executed this Agreement as of the date first hereinabove written. “Successor Agency”
City of Atwater, a California municipal
corporation
By: ___________________________
Printed Name:
“Assignor”
Jean Patricia Buck, Successor Trustee
of The Katharine A. Ostrander Trust
Agreement dated July 3, 1996
BY:_____________________________
Jean Patricia Buck, Successor Trustee
“Assignee”
Ernest Beltran, an unmarried man
BY:____________________________
Ernest Beltran
31 83744.00103\44516769.2
4 EXHIBIT “A”

LEGAL DESCRIPTION
Real property in the City of Atwater, County of Merced, State of California, described as follows:

Lot 7 according to map entitled ATWATER HIGHLANDS recorded July 19, 1949 in Book 12 of Official Plats, Page 12, Merced county records.

APN: 003-022-046-000
32 83744.00103\44516769.2
5 STATE OF CALIFORNIA )
) ss.

COUNTY OF )
On _________________________________, 2026, before me,
____________________________________________, Notary Public, personally appeared JEAN PATRICIA BUCK, who proved to me on the basis of satisfactory evidence to be the person whose names is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument to be the person or the entity upon behalf of which the person acted, executed the instrument.

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

Witness my hand and official seal.
_________________________________
Notary Public
[SEAL]
33 83744.00103\44516769.2
6 STATE OF CALIFORNIA )
) ss.

COUNTY OF )
On _________________________________, 2026, before me,
____________________________________________, Notary Public, personally appeared ERNEST BELTRAN, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument to be the person or the entity upon behalf of which the person acted, executed the instrument.

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

Witness my hand and official seal.
_________________________________
Notary Public
[SEAL]
34 83744.00103\44516769.2
7 STATE OF CALIFORNIA )
) ss.

COUNTY OF RIVERSIDE )
On _________________________________, 2026, before me,
____________________________________________, Notary Public, personally appeared _____________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is\are subscribed to the within instrument and acknowledged to me that he\she\they executed the same in his\her\their authorized capacity(ies), and that by his\her\their signature(s) on the instrument to be the person(s) or the entity(ies) upon behalf of which the person(s) acted, executed the instrument.

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

Witness my hand and official seal.
_________________________________
Notary Public
[SEAL]
35 General Plan Land Use Map Memorandum | Page 1

MEMORANDUM
January 21, 2026
TO: Atwater Planning Commission and City Council
FROM: Ben Ritchie, De Novo Planning Group
SUBJECT: General Plan Land Use Map
DATE: January 21, 2026
Introduction and Meeting Objectives
The joint meeting with the Atwater Planning Commission and City Council will focus on review and discussion of the most current version of the General Plan Update Land Use Map.

The Council and Commission met in April 2025 to review and discuss the Land Use Map. Direction to the project team was provided, and that direction has been incorporated into the latest iteration of the Land Use Map, which is included in the meeting packet. In addition to Map changes directed by the Council and Commission, this current map version includes additional changes which were not presented to the PC/CC in April 2025.

These changes relate to recent development applications received by the City, refinement of potential Housing Element sites, and cleanup/corrections identified by staff. All of these changes are noted in the attached map, and described in greater detail below.

As the Council and Commission are aware, the City has been working with a different group of outside consultants to prepare an update to the City’s Housing Element, as required by State law. While the Housing Element is a component of the General Plan, it is subject to different, and very specific, regulatory requirements, and is being prepared under a separate process. The original intent of City staff and the General Plan consultant team was to briefly pause work on the General Plan to allow the Housing Element to “catch up.” However, at this time, staff and the General Plan consultant team are recommending that the City proceed with completion of the General Plan without further delay.

Our objectives for the Land Use Discussion are:
• Receive Commission and Council feedback and input on the Land Use Map. • Seek direction to proceed with finalization of the Public Draft General Plan and corresponding Draft Environmental Impact Report (EIR).
• Receive information on next steps, the path forward to project completion, and pending opportunities for public outreach and the receipt of community input and feedback. 36 General Plan Land Use Map Memorandum | Page 2
Land Use Map Changes Overview
The Land Use Map being reviewed during this workshop is substantially similar to what was reviewed and discussed by the Commission and Council in April 2025. Overall, both the Planning Commission and City Council expressed strong support for the Land Use Map at the previous meeting.

The Map identifies nine areas of change, when compared to the City’s existing (currently adopted) Land Use Map. The text in the map sidebar briefly summarizes what has changed when compared to the existing map.

In most instances, the numbered areas on the map have not changed since this map was last reviewed by the Commission and Council. A brief summary of each numbered area is provided below. • Area 1: The land uses around the Dole Plant are unchanged from the last PC/CC review. • Area 2: The project team has worked to include the “most likely” list of Housing Element sites on the Land Use Map. In nearly all instances, it is assumed that Housing Element sites will be designated High Density Residential (HDR). The final list of approved Housing Element sites will require review and approval from the California Department of Housing and Community Development (HCD). • Area 3: No changes have been made to this area since the Map was last reviewed. The proposed uses match development patterns and uses on the ground.
• Area 4: This is a newly proposed development that has not been previously shown on the General Plan Land Use Map. While these proposed land uses may be reflected on the General Plan Land Use Map, a detailed project-specific traffic study, as well as project-level environmental review, would be required prior to any project approvals, to determine if development in this area is feasible, particularly from a traffic standpoint.
• Area 5: This is the Rai property. It is being shown on the Land Use Map as “Specific Plan.” It is unchanged from the last time this map was reviewed. The project team understands that the property owner is in the process of preparing a Specific Plan, which is anticipated to come forward at some point following adoption of the General Plan.
• Area 6: No changes have been made to this area since the Map was last reviewed. • Area 7: During the April 2025 Land Use meeting, the Commission and Council directed that this area be expanded and revised. The PC/CC directed that more land be allocated to Light Industrial uses, rather than Very Low Density Residential Uses. Additionally, the PC/CC directed that additional areas for suitably-located Manufacturing uses be identified on the Map. As such, this area has been revised as directed, and includes an expanded area for Light Industrial and Manufacturing uses in the vicinity of the AME corridor.
• Area 8: No changes have been made to this area since the Map was last reviewed. • Area 9: This is a new area that has not been previously shown as a change on the Land Use Map. This single parcel, which is bisected by the City Limits, would change from Very Low Density Residential to Commercial, consistent with the existing uses immediately north of the site. • It is also noted that the colors in the map legend have been revised in order to provide greater distinction and ease-of-reading.
37 General Plan Land Use Map Memorandum | Page 3
As noted above, the most notable area of change since the Map was last reviewed are areas 4 and 7.

The project team is seeking overall direction and input on the Land Use Map. The Planning Commission and City Council are not being asked to formally adopt or approve this map at this meeting. But rather, to direct if any additional revisions should be made, and to direct the consultant team to proceed with finalization of the General Plan and EIR, based on the Land Use Map.

Assuming direction to proceed with finalization of the General Plan and EIR is received during the meeting, the consultant team will present and discuss the next steps in the process, including an overview of anticipated public review and community outreach.

Attachments:

1. Proposed Land Use Map- Working Draft

2. Land Use Designations- Working Draft
38 !
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Longview Ave
N Winton Way
Co Rd 37
Olive Ave
A St
Fox Rd
N Quinley Ave
Walnut Ave
Franklin Rd
E Juniper Ave
Cascade Dr
1st St
Dan Ward Rd
Sycamore AveApplegate Rd
E Bellevue Rd
Wallace Rd
Mitchell Ave
N Gurr Rd
Shaffer Rd
Buller St
Camellia Dr
GreenSands Ave
Steinberg Rd
3rd St
Bell Dr
Elm Ave
Crawford St
5th St
Liberty Ave
Giannini Rd
Eucalyptus
St
Fleming Rd
Scott Dr
Piro Dr
Southern Pacific Ave
Fay Dr
Hospital Rd
Drakeley Ave
Co Rd J18
Cedar Ave
Granite Dr
Shuttle Dr
Railroad Ave
Camrose Dr
Palora Ave
Gertrude Ave
M
anzanita Dr
Lake View Dr
Harbor Dr
Arena Way
2nd St
Ladino Ave
Juniper Ave
Vine St
Station Ave
Valley St
Aviator Dr
Patriotic Dr
Center St
Lagoon Ave
Crest Rd
Nebela Dr
Cypress Ave
W Perimeter Ave
Virginia St
Oriole St
4th St
Meadow St
Augusta Ln
Castle St
Almond Ave
Fairway Dr
Redwood Ave
Oregon Ave
Ca
nal Dr
Broadway Ave
Summerfield Dr
Herrod Ave
Chestnut Ln
E Holly Ave
High
St
Spacecraft Dr
S ilva Dr
E Clinton Ave
Ston e Creek Dr
Secretar ai t Dr
Linden St
Laurel Ave
Dorothy Dr
Landram Ave
P
Brownell St
alm Ave
Bellevue Rd
Monarch Ave
Moran Rd
Swan Rd
Ivy Ave
E Broadway Ave
Stein Rd
Fir Ave
Campbell Blvd
Mulberry Ave
Cherub Ln
Bert Crane Rd
Sierra Vista St
Caron
Way
Dakota St
N
Buhach Rd
Orchard Park
Thunderbird Ave
Tamarack AveRainbow Ln
Village Woods Dr
Central Ave
W Ave 2
Muir Ave
Valley Dr
Sunset Dr
Sultana Dr
W Ave 1
Industry Way
Kansas Ave
Commerce Ave
Trindade Rd
Elliott Ave
Fruitland Ave
Grove Ave
Truckee Dr
Progress Ave
Kelly Ct
Sultana Ave
Federal Way
Moran Ave
Castle Airforce Base
Cindy Dr
Sohan Dr
Rose Ave
Marvis Dr
Michell Dr
Branch
Airpark Rd
Rogers Rd
Willow St
Bell Ln
Neves Dr
Celestial Dr
ConvoyRd
Bradshaw Rd
Josie St
Heather Glen Ln
W Cardella Rd
Bus Park Way
Longview Rd
Atwater Jordan Rd
Hull Rd
Vine Ave
Cressey Wa
y
Magnolia Rd
White Crane Rd
W Belcher Ave
Sheesley Rd
Elk Rd
N Perimeter Dr
Atwater Blvd
140
140
140
99 99
99 Olive Ave
Bert Crane Rd
4 3
2 1
5 6
7 8
9 CASTLE

AIRPORT
WINTON
Atwater
High School
Wood
Elementary
Mitchell
Senior
Elementary
Colburn
Elementary
Shaffer
Elementary
Olaeta
Elementary
Bellevue
School
Buhach Colony
High School
St. Ant.

School
Peggy Heller School
Juniper
Elementary
School

L E G E N D
Atwater City Boundary
Sphere of Influence (SOI)
Planning Area
Atwater Merced Expressway (AME)
Future AME Connection to Hwy 140 (approx)
Bellevue Road Realignment
Parcel Proposed for Change
Agriculture (AG)
Very Low Density Residential (VLDR)
Low Density Residential (LDR)
Medium Density Residential (MDR)
High Density Residential (HDR)
Residential Transition (RT)
Downtown Residential Transition (DTR)
Commercial (C)
Light Industrial (LI)
Manufacturing (MFG)
Business Park (BP)
Mixed Use (MU)
Specific Plan (SP)
Park (P)
Recreation (Rancho Del Rey Golf Course)
School (SCH)
Institutional (INST)
Urban Reserve (UR)
New Planning Area
undesignated (Castle Street)
Parcelized Right-of-Way
When printed at 24x36
1 inch = 1500 feet
0 1,500 3,000
Feet
Produced by De Novo Planning Group for the City of Atwater January 20, 2026
Sources: Merced County GIS; City of Atwater GIS; CalTrans Aviation; USGS Roads Database.

Rancho
Del Rey
Golf
Club
Vine Ave Extension
This single parcel, bisected by the city boundary, will change from Very Low Density Residential to
Commercial
9 This area of the city is currently designated as
Commercial Transition. As part of the General Plan
update, the CT designation is being eliminated.

Therefore this area will be converted to Low Density
Residential.
8 The existing Land Use Map did not consider the Atwater Merced Expressway (AME) passing through this area.

Once the AME is completed, traffic patterns and
volumes in this area will change notably. Currently this area is a mix of Commercial, Very Low, Low and
Medium Density Residential, and Urban Reserve
Business Park. Under the Proposed General Plan,
Commercial designations will remain and Light
Industrial, Business Park, Manufacturing, and Mixed
Use designations will be introduced.
7 The current General Plan identifies this area as
Business Park, Commercial, and Very Low and Medium
Density Residential. However, given the location and
alignment of the pending Atwater Merced Expressway
and the proximity to Buhach Colony High School, this
area is proposed to be Low Density Residential.
6 This area is currently designated business park, but is proposed to change to Specific Plan. The General Plan
will identify a range of residential, commercial, and
industrial uses as being suitable for the Specific Plan.

It is anticipated that a Specific Plan would be prepared following adoption of the General Plan.
5 This area within the Sphere of Influence is currently designated Very Low Density and Business Park. A new
development project is proposed that will incorporate
Low, Medium, and High Density Residential along with
some Commercial uses. A project-level traffic study
would be required prior to any approvals, to determine
if the proposed development is feasible in this location. 4 This area of the city is currently designated as Business Park and is proposed to convert to Commercial to 3 match existing developed conditions. !(
The Draft Housing Element identifies several areas that require a General Plan designation change to High
Density Residential in order to accommodate new
housing sites. The parcels outlined with a thin blue
dashed line and containing a blue center point ( ) are
proposed to be High Density Residential as part of the
Housing Element. Although they cluster around the
large 2 on the map, there are several others denoted
with this same symbology throughout the city. Some of
these areas may be subject to change pending
finalization of the Housing Element.
2 This portion of the Sphere of Influence is currently
designated as Commercial and Business Park, with
smaller areas of Very Low Density Residential, Urban
Reserve, and Future Park along the northern section.

However, with the extension of Bellevue Road and the
increasing accessibility of this area, it is proposed to keep and extend the Commercial and Business Park
uses north of Bellevue Road, while introducing Low,
Medium, and High Density Residential uses south of
Bellevue Road along the Vine Avenue Extension.
1 City of Atwater
Proposed General Plan Map
Explanation of Proposed Changes
Numbered Explanations
FINAL (v16) - January 20, 2026
#
Atwater-Merced Expressway
Bellevue Road Realignment Project
39 Land Use Designations- Working Draft
Very Low Density Residential (VLDR)
This designation accommodates the needs of residents who desire large parcels and the feeling of open space integrated with a suburban lifestyle. The permitted density range is 0 to 3.0 units per acre. The minimum parcel size permitted is 11,000 square feet, however, most parcels are greater in size. One single family residence is permitted per legally created lot. Typical land uses include: single family residences and residential accessory uses, churches, schools, parks, community care facilities, and necessary public utility and safety facilities. Secondary dwelling units may be permitted consistent with state and local regulations.

Low Density Residential (LDR)
This category provides for residential development at densities that are typical for existing single family residential subdivisions within the City. The permitted density range is 3.1 to 7.0 units per acre. Parcel sizes range from 5,000 to 11,000 square feet in area. All properties must be served by public sewer and water.

Typical land uses include: single family residences and residential accessory uses, churches, schools, parks, community care facilities, and necessary public utility and safety facilities. Secondary dwelling units may be permitted consistent with state and local regulations.

Medium Density Residential (MDR)
This classification is designed to accommodate a variety of residential products including, but not limited to, single-family detached and attached units, zero lot line developments, duplexes, and multi-family structures. The permitted density range is 7.1 to 15.0 units per acre. Associated land uses include: residential accessory uses, churches, schools, parks, community care facilities, and necessary public utility and safety facilities.

High Density Residential (HDR)
This designation is intended to provide for multi-family units such as apartments, and/or condominiums in structures up to four stories in height. The permitted density range is 15.1 to 35 units per acre. Projects should include common open space and on-site recreational amenities such as tot lots, pools, or playground equipment. On-site day care facilities are also encouraged.

Downtown Residential Transition (Mixed Use)
This designation provides for a full range of uses in Downtown Atwater including retail stores, eating and drinking establishments, commercial recreation, entertainment and cultural facilities, hospitals, hotels and motels, educational and social services, and government offices. Residential uses are appropriate up to 25 dwelling units per acre. A mix of uses within a building-- such as, active ground floor uses, and upper story office and residential uses-- is appropriate. Individual projects may include a combination of both residential and non-residential uses, and exclusively residential uses are allowed. Development and redevelopment projects shall be designed to have a strong pedestrian orientation with active uses occupying the ground floor. The maximum floor area ratio permitted is 2.0. 40 Residential Transition (RT)
This designation is intended to provide a transition between commercial development and adjacent residential neighborhoods. It has also been applied in locations where a mix of commercial and residential land uses have been approved. The purpose of the classification is to encourage the development of apartments and certain compatible commercial uses, or the expansion and improvement of existing structures. Residential densities up to 21 units per acre are considered compatible. Commercial land uses which may be potentially compatible include, but are not limited to: medical, professional and business offices, parking lots and structures, personal service establishments, retail stores, restaurants, motels, rooming and boarding homes, social halls, lodges, fraternal organizations and clubs, licensed nursing or convalescent homes, public and quasi-public uses, minor manufacturing when at least 75 percent of the product is sold on the premises. The maximum floor area ratio permitted is 0.35.

Mixed Use (MU)
The Mixed Use designation allows for the integration in a single project of both residential and commercial uses. Housing is permitted but not required. The mixed use designation allows the placement of residential units over street level businesses, as well as development of residential only uses adjacent to compatible commercial, office and recreational uses. Within areas designated mixed use, project densities up to 35 units per acre will be allowed. The maximum floor area ratio permitted is 0.75.

Commercial (COM)
This designation is intended to accommodate a wide range of commercial activities ranging from regional commercial facilities to general and neighborhood commercial uses. Establishments may range from retail to service and entertainment uses. Development may occur as a single structure, group of commercial uses (small- to medium-scale center) or regional mall type facility. Developments consisting of 75,000 square feet or more should incorporate landscaped public gathering areas with pedestrian oriented features such as benches in central locations. Common driveways and parking areas or other features should be utilized whenever possible to avoid impacts on the capacity of adjacent roadways. Commercial centers should present a unifying architectural theme, include an internal traffic circulation system and accommodations for transit services, as well as, a unifying landscape theme. The maximum floor area ratio permitted is 0.35.

Manufacturing (MFG)
This designation provides for a wide range of industrial activities which involve warehousing, manufacturing, processing, fabrication, and other similar operations. Some uses may be noisy, and prone to emit dust, vibration, odor, and/or glare, although these impacts must be mitigated at the property line to avoid negative impacts on adjacent uses. Businesses generally involve the frequent use of large trucks for pick-up and delivery of parts and products. Typical uses often have high utility demands and require special consideration for construction to accommodate heavy truck traffic. Uses can be developed independently or as part of a subdivision. The maximum floor area ratio permitted for most uses is 0.50. However a maximum floor area ratio of 0.60 is allowed for low employment industries, such as, warehousing, wholesaling, or distribution.

Business Park (BP)
In contrast to the Manufacturing category, the Business Park designation provides for large buildings or a cluster of buildings usually developed in a “campus” style. Business uses may include manufacturing operations within completely enclosed buildings, associated offices, trade schools, and supporting child care and retail activities. Outside storage is limited and must be effectively screened with solid fencing 41 and/or landscaping. The operations are quiet and require infrequent use of large trucks for pickup or delivery of parts or products.

Buildings are visually pleasing with extensive landscaping around buildings and parking areas. Projects with multiple buildings provide a strong pedestrian orientation between the structures. A typical project has vehicular access to a major street with on-site parking and a project identification sign. The maximum floor area ratio permitted is 1.0.

Light Industrial (LI) - (new designation)
The Light Industrial designation accommodates a wide range of jobs-generating uses, including business parks; clean light industrial; research and development (R&D); science, technology, engineering, and math (STEM); tech/biotech manufacturing; high-tech services that incorporate some combination of assembly, warehousing, and/or sales, hospitals and other health care-related uses, warehouses and distribution centers.

The maximum floor area ratio permitted is 1.0.

Castle Airport Aviation and Development Center (CAADC)
The City of Atwater has adopted land uses identified within the Castle Air Force Base Reuse Plan as the Land Use Plan for the Castle Airport Aviation and Development Center. These designations are incorporated into the General Plan by reference.

Urban Reserve (UR)
This designation has been applied to select areas within the City of Atwater’s existing and proposed sphere of influence to indicate locations which may be suitable for urban development in the future. Current Merced County agricultural designations and permitted uses will apply in these areas until such time as annexation into the City of Atwater is initiated.

Agriculture/Area of Interest (AG)
This designation has been applied both inside and outside of the City’s proposed Sphere of Influence to indicate those locations where current agricultural and open space land uses are to be maintained in areas surrounding the City. Application of the term “Area of Interest” is intended to lay the groundwork for longterm agreements with the City and County of Merced relative to the maintenance of distinct boundaries and buffers between the City of Atwater, City of Merced, Community of Winton, McSwain, and FranklinBeachwood.

Institutional (I)
This designation is intended for public and quasi-public facilities, including, but not limited to, government services and facilities, fire/police stations, wastewater treatment facilities, electrical substations, domestic water treatment and storage, and other similar uses. New facilities may be appropriate in any land use category based on need and environmental review. The Land Use Diagram will not be amended for new public facilities on sites that occupy less than 2 acres. The maximum floor area ratio permitted is 0.40. 42 School (SCH)
his designation has been applied to areas with existing and proposed primary and secondary public school facilities. While the City maintains a School designation in this General Plan, new school facilities may be appropriate in any land use category based on need and environmental review. The maximum floor area ratio permitted is 0.40.

Park (PK)
This designation has been applied to indicate the location of existing and planned public park facilities ranging from neighborhood to community parks. Additional parkland which may be dedicated and developed in conjunction with individual subdivisions need not receive a formal designation in order to be established. The maximum floor area ratio permitted is 0.10.

Specific Plan (SP)
This overlay has been applied within the Sphere of Influence to indicate locations where Specific Plans will be prepared to guide future growth and development. Lands within these areas will continue to be under the jurisdiction of the County of Merced until the Specific Plans are adopted and future annexation is completed. Incorporation of these areas within the City’s proposed Sphere of Influence will allow the City to review and comment on any development applications that are considered by Merced County in the interim, and provide opportunities for the establishment of uniform development standards and coordinated facilities planning.
43

Atwater City CouncilJanuary 28, 2026

Atwater City Council
January 28, 2026