CITY OF AVENAL
“Pistachio Capital of the World®”
REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING
JUNE 23, 2022; 5:15 P.M.
AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA VIA ZOOM VIDEO/WEB CONFERENCING:
Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join.
StudySession: FY 2022-2023 Budget Hearing Workshop at 4:15pm LAST ORDINANCE: 2022-03 CITY LAST RESOLUTION: 2022-36
(SA) LAST RESOLUTION: 2021-04 PFA LAST RESOLUTION: 2021-05 AGENDA
1. CALL TO ORDER & PLEDGE OF ALLEGIANCE:
2. ROLL CALL: Councilmembers: Louis Gravelle, Ricardo Verdugo, Pablo Hernandez, Mayor Pro Tem Alejandro Ramirez; Mayor Alvaro Preciado.
CITY CLERK:
Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency.
3. CLOSED SESSION: (City/Successor Agency):
It is the intent of this governing body to meet in closed session to review its position and to instruct its designated representatives: Any person may directly address the Council/Agency at this time on items of interest regarding Closed Session.
A. PENDING LITIGATION (Government Code § 54956.9).
Conference with legal counsel – ANTICIPATED LITIGATION (Government Code § 54956.9(d)).
Significant exposure to litigation (Government Code § 54956.9(d)(2)).
Number of potential cases is: 1
B. PERSONNEL (Government Code § 54957(b)).
It is the intention of this governing body to meet in closed session to:
1. Consider Public Employee Performance Evaluation for the Position of:
• City Manager
4. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPEARANCES:
Any person may directly address the Council/Agency at this time on any item on the agenda or on any other items of interest to the public that is within the subject matter jurisdiction of the City Council/Successor Agency. State Law prohibits any member of the Council/Agency from commenting or acting on matters not on the agenda. Three (3) minutes are allowed per person.
• Community Activities Department Introduce Three New Summer Staff – Cynthia Nieto, Paola Carmona, and Melania Carcamo
• Avenal Police Department Introduce New Police Officer – Mariano Sanchez
5. CONSENT CALENDAR:
All items listed under the consent calendar are routine and enacted by one motion: (Action).
A. Consider City of Avenal/Successor Agency’s Approval of Minutes for June 9, 2022.
B. Consider Resolution Requesting County Clerk to Render Services for Municipal Elections – November 8, 2022: Resolution 2022-37.
6. MAYOR & COUNCIL MEMBER/ SUCCESSOR AGENCY/ ITEMS FOR
CONSIDERATION:
A. Consider Designation of Voting Delegates and Alternates to League of California Cities Annual Conference & Expo - September 7-9, 2022. (Discussion/Action).
June 23, 2022 Pg. 1
7. ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS:
A. Activity Reports:
1. IT Department Activity Report: Humberto Bermudez, IT Manager.
B. Special Presentations/Reports:
1) None.
8. PUBLIC HEARING(s):
A. Public Hearing on Proposed Water and Wastewater (Sewer) Utility Rate Increases for Fiscal Years 2023 - 2027:
• Staff Report
• Public Hearing
• Adopt Resolutions 2022-38 (Discussion/Action).
9. OLD BUSINESS:
A. Consider Extending Local Emergency Declared on March 24, 2020: (Discussion/Action).
B. Consider Extending Local Emergency Declared on May 27, 2021, and Amending Tier III Water Conservation Rules; Resolution 2022-39: (Discussion/Action).
10. NEW BUSINESS:
A. Consider Adopting Ordinance 2022-04, and Resolution 2022-40, Enacting a One-Cent General Sales Tax - Antony V. López, City Manager: (Discussion/Action).
B. Consider Adopting Ordinance 2022-05, and Resolution 2022-41, Imposing a Business Tax on Commercial Cannabis Businesses - Antony V. López, City Manager:
(Discussion/Action).
C. Consider Establishing One Unpaid Internship Position within City Hall – Griselda Price, Director of Administrative Services; Resolution 2022-42: (Discussion/Action).
11. CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS:
• Upcoming/Future Agenda Items to Consider.
• Correspondence/Announcements/Information/Closing Comments.
12. ADJOURNMENT:
1) In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office (559) 386-5766. Avenal Theater & Event Center, 233 East Kings Street Avenal, CA 93204.
Notification 48 hours prior to the meeting will enable the city to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.02.35.1044 AA Title II].
2) Materials related to an item on this Agenda submitted to the [Council/ Authority] after distribution of the agenda packet are available for public inspection in the [City Clerks] office at 919 Skyline Blvd., Avenal, CA 93204 during normal business hours.
I certify this Agenda of the City of Avenal City Council workshop is to be posted at the following locations: 1) City Council Chambers, Avenal Theater 233 E. Kings St.; 2) City Hall 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; and 4) T&T Market, 801 Skyline Blvd. Avenal CA 93204 on, June 20, 2022.
/s/ Maria Ortiz
Maria Ortiz, City Clerk
June 23, 2022 Pg. 2
CIUDAD DE AVENAL
"Capital Mundial® del Pistacho®"
REUNIÓN REGULAR DEL CONCEJO MUNICIPAL / AGENCIA
SUCESORA / PFA 23 DE JUNIO DE 2022; 5:15 P.M.
AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA A TRAVÉS DE ZOOM VIDEO/WEB CONFERENCING:
Enlace web: bit.ly/AvenalCouncil o utilizar https://us02web.zoom.us/j/87243440488 O llamando al +1 669 900 6833 y usando el ID de reunión 872 4344 0488 para unirte.
Sesión de estudio: Taller de audiencia de presupuesto para el año fiscal 2022-2023 a las 4:15 p.m.
ÚLTIMA ORDENANZA: 2022-03 CIUDAD ÚLTIMA RESOLUCIÓN: 2022-36 (SA) ÚLTIMA RESOLUCIÓN: 2021-04 PFA ÚLTIMA RESOLUCIÓN: 2021-05 AGENDA
1. LLAMADA AL ORDEN Y JURAMENTO DE LEALTAD:
2. PASE DE LISTA: Concejales: Louis Gravelle, Ricardo Verdugo, Pablo Hernández, Alcalde Interino Alejandro Ramírez; Alcalde Álvaro Preciado.
SECRETARIO DE LA CIUDAD:
Sección 54952.3 del Código de Gobierno: Los miembros del Concejo Municipal / Agencia Sucesora tienen derecho a recibir un total de $ 300.00 por mes debido a ser elegidos para el Concejo Municipal. No reciben ninguna otra compensación por sentarse como miembros de la Agencia Sucesora.
3. SESIÓN CERRADA: (Ciudad/Agencia Sucesora):
Es la intención de este órgano rector reunirse en sesión privada para revisar su posición e instruir a sus representantes designados:
Cualquier persona puede dirigirse directamente al Consejo / Agencia en este momento sobre temas de interés relacionados con la sesión privada.
A. LITIGIO PENDIENTE (Código de Gobierno § 54956.9).
Conferencia con asesor legal – LITIGIO ANTICIPADO (Código de Gobierno § 54956.9(d)).
Exposición significativa a litigios (Código de Gobierno § 54956.9 (d) (2)).
El número de casos potenciales es: 1
B. PERSONAL (Código de Gobierno § 54957(b)).
Este órgano rector tiene la intención de reunirse en sesión privada para:
1. Considere Public Employee Performance Evaloración para la Posición de:
• Administrador de la ciudad
4. COMENTARIOS PÚBLICOS / ANUNCIOS Y APARICIONES NO PROGRAMADAS:
Cualquier persona puede dirigirse directamente al Consejo / Agencia en este momento sobre cualquier punto en la agenda o sobre cualquier otro tema de interés para el público que esté dentro de la jurisdicción de la materia del Concejo Municipal / Agencia Sucesora. La ley estatal prohíbe a cualquier miembro del Consejo / Agencia comentar o actuar sobre asuntos que no están en la agenda. Se permiten tres (3) minutos por persona. • El Departamento de Actividades Comunitarias presenta a tres nuevos empleados de verano • El Departamento de Policía de Avenal presenta a un nuevo oficial de policía
5. CALENDARIO DE CONSENTIMIENTO :
Todos los elementos enumerados en el calendario de consentimiento son rutinarios y se promulgan mediante una moción:
(Acción).
A. Considere la aprobación de las actas de la Ciudad de Avenal / Agencia Sucesora para el 9 de junio de 2022.
B. Considere la Resolución que Solicita al Secretario del Condado que Preste Servicios para las Elecciones Municipales - 8 de noviembre de 2022: Resolución 2022-37.
June 23, 2022 Pg. 3
6. ALCALDE Y CONCEJAL / AGENCIA SUCESORA / PUNTOS A
CONSIDERAR:
A. Considere la designación de delegados y suplentes con derecho a voto para la Conferencia y Exposición Anual de la Liga de Ciudades de California - 7-9 de septiembre de 2022. (Discusión/Acción).
7. INFORMES DE ACTIVIDADES/PRESENTACIONES ESPECIALES E INFORMES DE COMITÉS:
A. Informes de actividad:
1. Informe de Actividad del Departamento de IT: Humberto Bermúdez, Gerente de TI.
B. Presentaciones/Informes Especiales:
1) Ninguno.
8. AUDIENCIA(S) PÚBLICA(S):
A. Audiencia pública sobre los aumentos propuestos de las tarifas de los servicios públicos de agua y aguas residuales (alcantarillado) para los años fiscales 2023 - 2027:
• Informe del personal
• Audiencia Pública
• Adoptar las Resolucion 2022-38 (Discusión/Acción).
9. NEGOCIO ANTIGUO:
A. Considere extender la emergencia local declarada el 24 de marzo de 2020: (Discusión / Acción).
B. Considerar la posibilidad de extender la emergencia local declarada el 27 de mayo de 2021 y enmendar las reglas de conservación del agua de Nivel III; Resolución 2022-39:
(Discusión/Acción).
10. NUEVOS NEGOCIOS:
A. Considere la posibilidad de adoptar la Ordenanza 2022-04 y la Resolución 2022-40, que promulga un impuesto general sobre las ventas de un centavo - Antony V. López, Administrador de la Ciudad: (Discusión / Acción).
B. Considere la posibilidad de adoptar la Ordenanza 2022-05 y la Resolución 2022-41, Que impone un impuesto comercial on negocios comerciales de cannabis - Antony V. López, Administrador de la ciudad: (Discusión / Acción).
C. Considere establecer un puesto de pasantía no remunerada dentro del Ayuntamiento:
Griselda Price, Directora de Servicios Administrativos; Resolución 2022-42:
(Discusión/Acción).
11. CORRESPONDENCIA/ANUNCIOS/ COMENTARIOS FINALES:
• Próximos/Futuros puntos del orden del día a considerar. • Correspondencia/Anuncios/Información/ Comentarios finales.
12. APLAZAMIENTO:
1) De conformidad con la Ley de Estadounidenses con Discapacidad, si necesita asistencia especial para participar en esta reunión, comuníquese con la Oficina del Secretario de la Ciudad (559) 386-5766. Avenal Theater & Event Center, 233 East Kings Street Avenal, CA 93204. La notificación 48 horas antes de la reunión permitirá a la ciudad hacer arreglos razonables para garantizar la accesibilidad a esta reunión [28 CFR 35.02.35.1044 AA Título II]. 2) Los materiales relacionados con un punto de esta Agenda presentados al [Consejo / Autoridad] después de la distribución del paquete de la agenda están disponibles para inspección pública en la oficina [De los Secretarios de la Ciudad] en 919 Skyline Blvd., Avenal, CA 93204 durante los negocios normales horas.
Certifico que este taller de la Agenda del Concejo Municipal de la Ciudad de Avenal se publicará en los siguientes lugares: 1) Cámaras del Concejo Municipal, Teatro Avenal 233 E. Calle reyes; 2) Ayuntamiento 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; y 4) T&T Market, 801 Skyline Blvd. Avenal CA 93204 el 20 de junio de 2022. /s/ María Ortiz
María Ortiz, Secretaria municipal
June 23, 2022 Pg. 4
CITY OF AVENAL
“Pistachio Capital of the World®”
REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING
JUNE 23, 2022; 5:15 P.M.
AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA VIA ZOOM VIDEO/WEB CONFERENCING:
Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join.
StudySession: FY 2022-2023 Budget Hearing Workshop at 4:15pm LAST ORDINANCE: 2022-03 CITY LAST RESOLUTION: 2022-36
(SA) LAST RESOLUTION: 2021-04 PFA LAST RESOLUTION: 2021-05 AGENDA
1. CALL TO ORDER & PLEDGE OF ALLEGIANCE:
2. ROLL CALL: Councilmembers: Louis Gravelle, Ricardo Verdugo, Pablo Hernandez, Mayor Pro Tem Alejandro Ramirez; Mayor Alvaro Preciado.
CITY CLERK:
Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency.
3. CLOSED SESSION: (City/Successor Agency):
It is the intent of this governing body to meet in closed session to review its position and to instruct its designated representatives: Any person may directly address the Council/Agency at this time on items of interest regarding Closed Session.
A. PENDING LITIGATION (Government Code § 54956.9).
Conference with legal counsel – ANTICIPATED LITIGATION (Government Code § 54956.9(d)).
Significant exposure to litigation (Government Code § 54956.9(d)(2)).
Number of potential cases is: 1
B. PERSONNEL (Government Code § 54957(b)).
It is the intention of this governing body to meet in closed session to:
1. Consider Public Employee Performance Evaluation for the Position of:
• City Manager
4. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPEARANCES:
Any person may directly address the Council/Agency at this time on any item on the agenda or on any other items of interest to the public that is within the subject matter jurisdiction of the City Council/Successor Agency. State Law prohibits any member of the Council/Agency from commenting or acting on matters not on the agenda. Three (3) minutes are allowed per person.
• Community Activities Department Introduce Three New Summer Staff – Cynthia Nieto, Paola Carmona, and Melania Carcamo
• Avenal Police Department Introduce New Police Officer – Mariano Sanchez
5. CONSENT CALENDAR:
All items listed under the consent calendar are routine and enacted by one motion: (Action).
A. Consider City of Avenal/Successor Agency’s Approval of Minutes for June 9, 2022.
B. Consider Resolution Requesting County Clerk to Render Services for Municipal Elections – November 8, 2022: Resolution 2022-37.
6. MAYOR & COUNCIL MEMBER/ SUCCESSOR AGENCY/ ITEMS FOR
CONSIDERATION:
A. Consider Designation of Voting Delegates and Alternates to League of California Cities Annual Conference & Expo - September 7-9, 2022. (Discussion/Action).
June 23, 2022 Pg. 5
7. ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS:
A. Activity Reports:
1. IT Department Activity Report: Humberto Bermudez, IT Manager.
B. Special Presentations/Reports:
1) None.
8. PUBLIC HEARING(s):
A. Public Hearing on Proposed Water and Wastewater (Sewer) Utility Rate Increases for Fiscal Years 2023 - 2027:
• Staff Report
• Public Hearing
• Adopt Resolutions 2022-38 (Discussion/Action).
9. OLD BUSINESS:
A. Consider Extending Local Emergency Declared on March 24, 2020: (Discussion/Action).
B. Consider Extending Local Emergency Declared on May 27, 2021, and Amending Tier III Water Conservation Rules; Resolution 2022-39: (Discussion/Action).
10. NEW BUSINESS:
A. Consider Adopting Ordinance 2022-04, and Resolution 2022-40, Enacting a One-Cent General Sales Tax - Antony V. López, City Manager: (Discussion/Action).
B. Consider Adopting Ordinance 2022-05, and Resolution 2022-41, Imposing a Business Tax on Commercial Cannabis Businesses - Antony V. López, City Manager:
(Discussion/Action).
C. Consider Establishing One Unpaid Internship Position within City Hall – Griselda Price, Director of Administrative Services; Resolution 2022-42: (Discussion/Action).
11. CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS:
• Upcoming/Future Agenda Items to Consider.
• Correspondence/Announcements/Information/Closing Comments.
12. ADJOURNMENT:
1) In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office (559) 386-5766. Avenal Theater & Event Center, 233 East Kings Street Avenal, CA 93204.
Notification 48 hours prior to the meeting will enable the city to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.02.35.1044 AA Title II].
2) Materials related to an item on this Agenda submitted to the [Council/ Authority] after distribution of the agenda packet are available for public inspection in the [City Clerks] office at 919 Skyline Blvd., Avenal, CA 93204 during normal business hours.
I certify this Agenda of the City of Avenal City Council workshop is to be posted at the following locations: 1) City Council Chambers, Avenal Theater 233 E. Kings St.; 2) City Hall 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; and 4) T&T Market, 801 Skyline Blvd. Avenal CA 93204 on, June 20, 2022.
/s/ Maria Ortiz
Maria Ortiz, City Clerk
June 23, 2022 Pg. 6
CIUDAD DE AVENAL
"Capital Mundial® del Pistacho®"
REUNIÓN REGULAR DEL CONCEJO MUNICIPAL / AGENCIA
SUCESORA / PFA 23 DE JUNIO DE 2022; 5:15 P.M.
AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA A TRAVÉS DE ZOOM VIDEO/WEB CONFERENCING:
Enlace web: bit.ly/AvenalCouncil o utilizar https://us02web.zoom.us/j/87243440488 O llamando al +1 669 900 6833 y usando el ID de reunión 872 4344 0488 para unirte.
Sesión de estudio: Taller de audiencia de presupuesto para el año fiscal 2022-2023 a las 4:15 p.m.
ÚLTIMA ORDENANZA: 2022-03 CIUDAD ÚLTIMA RESOLUCIÓN: 2022-36 (SA) ÚLTIMA RESOLUCIÓN: 2021-04 PFA ÚLTIMA RESOLUCIÓN: 2021-05 AGENDA
1. LLAMADA AL ORDEN Y JURAMENTO DE LEALTAD:
2. PASE DE LISTA: Concejales: Louis Gravelle, Ricardo Verdugo, Pablo Hernández, Alcalde Interino Alejandro Ramírez; Alcalde Álvaro Preciado.
SECRETARIO DE LA CIUDAD:
Sección 54952.3 del Código de Gobierno: Los miembros del Concejo Municipal / Agencia Sucesora tienen derecho a recibir un total de $ 300.00 por mes debido a ser elegidos para el Concejo Municipal. No reciben ninguna otra compensación por sentarse como miembros de la Agencia Sucesora.
3. SESIÓN CERRADA: (Ciudad/Agencia Sucesora):
Es la intención de este órgano rector reunirse en sesión privada para revisar su posición e instruir a sus representantes designados:
Cualquier persona puede dirigirse directamente al Consejo / Agencia en este momento sobre temas de interés relacionados con la sesión privada.
A. LITIGIO PENDIENTE (Código de Gobierno § 54956.9).
Conferencia con asesor legal – LITIGIO ANTICIPADO (Código de Gobierno § 54956.9(d)).
Exposición significativa a litigios (Código de Gobierno § 54956.9 (d) (2)).
El número de casos potenciales es: 1
B. PERSONAL (Código de Gobierno § 54957(b)).
Este órgano rector tiene la intención de reunirse en sesión privada para:
1. Considere Public Employee Performance Evaloración para la Posición de:
• Administrador de la ciudad
4. COMENTARIOS PÚBLICOS / ANUNCIOS Y APARICIONES NO PROGRAMADAS:
Cualquier persona puede dirigirse directamente al Consejo / Agencia en este momento sobre cualquier punto en la agenda o sobre cualquier otro tema de interés para el público que esté dentro de la jurisdicción de la materia del Concejo Municipal / Agencia Sucesora. La ley estatal prohíbe a cualquier miembro del Consejo / Agencia comentar o actuar sobre asuntos que no están en la agenda. Se permiten tres (3) minutos por persona. • El Departamento de Actividades Comunitarias presenta a tres nuevos empleados de verano • El Departamento de Policía de Avenal presenta a un nuevo oficial de policía
5. CALENDARIO DE CONSENTIMIENTO :
Todos los elementos enumerados en el calendario de consentimiento son rutinarios y se promulgan mediante una moción:
(Acción).
A. Considere la aprobación de las actas de la Ciudad de Avenal / Agencia Sucesora para el 9 de junio de 2022.
B. Considere la Resolución que Solicita al Secretario del Condado que Preste Servicios para las Elecciones Municipales - 8 de noviembre de 2022: Resolución 2022-37.
June 23, 2022 Pg. 7
6. ALCALDE Y CONCEJAL / AGENCIA SUCESORA / PUNTOS A
CONSIDERAR:
A. Considere la designación de delegados y suplentes con derecho a voto para la Conferencia y Exposición Anual de la Liga de Ciudades de California - 7-9 de septiembre de 2022. (Discusión/Acción).
7. INFORMES DE ACTIVIDADES/PRESENTACIONES ESPECIALES E INFORMES DE COMITÉS:
A. Informes de actividad:
1. Informe de Actividad del Departamento de IT: Humberto Bermúdez, Gerente de TI.
B. Presentaciones/Informes Especiales:
1) Ninguno.
8. AUDIENCIA(S) PÚBLICA(S):
A. Audiencia pública sobre los aumentos propuestos de las tarifas de los servicios públicos de agua y aguas residuales (alcantarillado) para los años fiscales 2023 - 2027:
• Informe del personal
• Audiencia Pública
• Adoptar las Resolucion 2022-38 (Discusión/Acción).
9. NEGOCIO ANTIGUO:
A. Considere extender la emergencia local declarada el 24 de marzo de 2020: (Discusión / Acción).
B. Considerar la posibilidad de extender la emergencia local declarada el 27 de mayo de 2021 y enmendar las reglas de conservación del agua de Nivel III; Resolución 2022-39:
(Discusión/Acción).
10. NUEVOS NEGOCIOS:
A. Considere la posibilidad de adoptar la Ordenanza 2022-04 y la Resolución 2022-40, que promulga un impuesto general sobre las ventas de un centavo - Antony V. López, Administrador de la Ciudad: (Discusión / Acción).
B. Considere la posibilidad de adoptar la Ordenanza 2022-05 y la Resolución 2022-41, Que impone un impuesto comercial on negocios comerciales de cannabis - Antony V. López, Administrador de la ciudad: (Discusión / Acción).
C. Considere establecer un puesto de pasantía no remunerada dentro del Ayuntamiento:
Griselda Price, Directora de Servicios Administrativos; Resolución 2022-42:
(Discusión/Acción).
11. CORRESPONDENCIA/ANUNCIOS/ COMENTARIOS FINALES:
• Próximos/Futuros puntos del orden del día a considerar. • Correspondencia/Anuncios/Información/ Comentarios finales.
12. APLAZAMIENTO:
1) De conformidad con la Ley de Estadounidenses con Discapacidad, si necesita asistencia especial para participar en esta reunión, comuníquese con la Oficina del Secretario de la Ciudad (559) 386-5766. Avenal Theater & Event Center, 233 East Kings Street Avenal, CA 93204. La notificación 48 horas antes de la reunión permitirá a la ciudad hacer arreglos razonables para garantizar la accesibilidad a esta reunión [28 CFR 35.02.35.1044 AA Título II]. 2) Los materiales relacionados con un punto de esta Agenda presentados al [Consejo / Autoridad] después de la distribución del paquete de la agenda están disponibles para inspección pública en la oficina [De los Secretarios de la Ciudad] en 919 Skyline Blvd., Avenal, CA 93204 durante los negocios normales horas.
Certifico que este taller de la Agenda del Concejo Municipal de la Ciudad de Avenal se publicará en los siguientes lugares: 1) Cámaras del Concejo Municipal, Teatro Avenal 233 E. Calle reyes; 2) Ayuntamiento 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; y 4) T&T Market, 801 Skyline Blvd. Avenal CA 93204 el 20 de junio de 2022. /s/ María Ortiz
María Ortiz, Secretaria municipal
June 23, 2022 Pg. 8
CITY OF AVENAL
“Pistachio Capital of the World®”
REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING
JUNE 9, 2022; 5:15 P.M.
AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA VIA ZOOM VIDEO/WEB CONFERENCING:
Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join.
MINUTES
CALL TO ORDER & PLEDGE OF ALLEGIANCE: by Mayor Preciado at 5:21 p.m.
ROLL CALL: Councilmembers: Louis Gravelle, Pablo Hernandez, Luis Gravelle, and joined meeting via zoom Ricardo Verdugo, Mayor Pro Tem Alejandro Ramirez.
ABSENT: None.
STAFF: Lopez, Ortiz, Bermudez, Davis, Lara-Nieto, Price.
LEGAL COUNCEL: Moses Diaz.
CITY CLERK:
Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency.
The City Council went into Closed Session at 5:29 p.m.
CLOSED SESSION: (City/Successor Agency):
It is the intent of this governing body to meet in closed session to review its position and to instruct its designated representatives: Any person may directly address the Council/Agency at this time on items of interest regarding Closed Session.
A. PENDING LITIGATION (Government Code § 54956.9).
Conference with legal counsel – ANTICIPATED LITIGATION (Government Code § 54956.9(d)).
Significant exposure to litigation (Government Code § 54956.9(d)(2)).
Number of potential cases is: 1
B. PERSONNEL (Government Code § 54957(b)).
It is the intention of this governing body to meet in closed session to:
1. Hear Complaints or Charges Against a Public Employee.
2. Consider Public Employee Performance Evaluation for the Position of:
• City Manager
Mayor Preciado re-opened City Council meeting at 6:34 p.m. with nothing to report out of Closed Session.
PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPERANCES ITEMS:
George Anderson, Site Manager Landfill reported the following: 1) Fresno Trees received 55-trees called apollo pine trees. Also, blessed with volunteers that helped plant trees and California Department of Forestry provided fertilizer. He personally thanked members of HEAL organization for volunteering and all others.
Jack Amoroso former Chief of Police reported that he had privilege of addressing the council over 100 times. He has many concerns regarding the integrity of the Police Department, recruitment for captains which he feels was not qualified, public safety, excessive overtime, hiring practices, training new Police Officers and Police Officers leaving to other agencies. He gave an example of the tragedy that occurred in Texas within 48 hours it was determined that one bad decision cost probably 9 more lives, because someone made a bad decision the Chief of Police made a bad decision. The Council has a responsibility to put people in charge that will make good decisions. The City Council has no business telling the Police Department how to be run all promotion should be internal on AGENDA ITEM NO. 5. – A.
June 23, 2022 Pg. 9
Joint Meeting City Council/Successor Agency/PFA – June 9, 2022
merit. In concluding two things start writing checks because you will get sued and have Sheriff Robinson number on speed dial. Also, 2010 this city took a big step they had the courage to start their own Police Department during a difficult financial time that Council and City Manager have spent about $25 million on this Police Department and now that's going to go away because of bad decisions.
He suggests that the City Council think hard and get somebody that knows about law enforcement and directs the City Council on how to get this Police Department rebuilt. Mr. Amoroso built it in 2010 with Russell Stivers, Kevin Carr, DJ Vargas, Alise Ortega committed dedicated officers that cared and left. Now it up to the City Council to figure out if public safety is the number one priority.
Veronica Aguirre reported the following: 1) she would of like to address Mr. Amoroso but has left; 2) Also, what is concerning regarding the Police Department that things need to put in place. So, she is confused why somebody would retire and not have the proper channels taken care of which obviously leaves our community with issues; 2) understanding some of the people that may have left are probably some that caused fear within our community running around two years ago prior to COVID going to all the schools there be saying that if we close the landfill then there would be no JSO officer. So, if that's the type of public safety. then we should reconsider some of the comments that are being said and we all look too public safety that’s a given but who jumped ship; 3) the City Council makes decisions for this community. We don't need people outside of this community putting our leaders in a corner and making them feel any otherwise because that weakens the community; 4) We are not about that new realm everybody gets in here we are about trying to build our community to what we need. If people can't be a part of it, then best of luck; 5) we need public safety yes, but do not need people to disrespect us; and 6) Also, one more thing she when people that have behind the scenes start putting things on Facebook trying to steal our community putting innuendos sometimes encrypted messages about a certain date things are going to be changed unless it's positive if there's nothing positive then leave it off your page leave it don't put it on the community page. We need to empower the community not scare them.
Mayor Preciado stated that they cannot comment by law to public comment. He assured the community that they were working on those false accusations and the City Attorney will help respond to these issues. The City Council takes their positions very seriously and our public safety is our number one priority.
Mr. Lopez mentioned to quickly clarify their personal matters that happen and unfortunately, they are not able to be discussed and public safety is our priority.
CONSENT CALENDAR:
All items listed under the consent calendar are routine and enacted by one motion: (Action).
A. Consider City of Avenal/Successor Agency’s Approval of Minutes for May 26, 2022.
A. Consider Approval for Out of State Travel Requests to California Rural Water Association Expo, and Tri-State Seminar.
Council Member/Successor Agency Member Verdugo made a motion to approve Consent Calendar as presented, seconded by Council Member/Successor Agency Member Hernandez, and carried.
Roll Call Vote:
AYES: Verdugo, Hernandez, Ramirez, Gravelle, Preciado.
NOES: None.
ABSENT: None.
ABSTAIN: None.
MAYOR & COUNCIL MEMBER/ SUCCESSOR AGENCY/ ITEMS FOR CONSIDERATION:
A. Consider Dates for FY 2022-2023 Budget Hearings:
Mr. Lopez reported that he will be quick. So, as council is aware and has been brought up a few times that the fiscal year is upon us, and we will need to adopt a new budget for the next fiscal year by the end of this month. The fiscal year runs from June 1st to July 31st Staffs was to have the budget or have a budget to present to council by the June 23rd council meeting, but we are running a little behind given that some admin staff has been sick this week. He mentioned the council earlier we had five staff members who were out today so I'm not COVID at least not yet but there seems to be a bug going around so it's disrupted our workload a little bit but so far discussing with the finance department the plan is next week working with each department to discuss their budget hearing as follows:
Jun current expenses are as up to date as possible. He would propose the following dates:
• Wednesday, June 22, 2022 - 4:30 p.m. – Avenal City Hall, 919 Skyline Blvd. • Thursday, June 23,2022 – 4:30 p.m. - Avenal Theater & Event Center (Study Session) June 23, 2022 Pg. 10
Joint Meeting City Council/Successor Agency/PFA – June 9, 2022
• Wednesday, June 29,2022 – 4:30 p.m. – Avenal City Hall, 919 Skyline Blvd. • Thursday, June 30, 2022- 4:30 p.m. – Avenal City Hall, 919 Skyline Blvd.
Hopefully, budget can be adopted by the 29th but we will keep the 30th noticed just in case compared.
ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS:
A. Activity Reports:
1. Public Works/Code Enforcement/Animal Control Departments Activity Report: Rob Williams, Public Works Director/Scott Davis Public Works Supervisor.
Scott Davis, Public Works Supervisor, reported on the following: 1) Code Enforcement; 2) Park & Landscaping; 3) Streets; 4) Water Distribution; 5) Wastewater Collection; and 6) Vehicle, Equipment.
A. Special Presentations/Reports:
1. None.
PUBLIC HEARING(s):
A. Public Hearing for: 2022 Community Development Block Grant Application; Approval of The Economic Development Business Assistance and Microenterprise Guidelines; and Closeout of 20-CDBG-CV1-0055 Grant. • Staff Report
• Public Hearing
• Adopt Resolution
Mr. Lopez summarizing Hearing for approval and submitting the Grant. Also, to approve the Grant Guidelines and there are two resolutions that are being considered. Also, closing out CV1 provided funds for utility assistance that doesn't mean the programs is gone there are still funds in the program to continue under CV2 and CV3. He handed it over to Self Help Enterprises to add anything.
Susan Long, Program Director Partner Service Self-Help Enterprises reported that CDBG Program regulations require that the City conduct a public hearing on all CDBG- related matters to provide for and encourage citizen participation, particularly by low- and moderate-income persons who reside in areas in which CDBG funds are used. Therefore, when the public hearing is opened, the public will be invited to comment on the City’s proposed resubmittal of a 2022 CDBG Grant application, CDBG Program Income, and to make their comments known on the proposed activities.
A public notice was published in the May 20,2022, issue of the Hanford Sentinel notifying the public of this public hearing.
HCD released a NOFA announcing the availability of CDBG Program funds in April 2022. The City is preparing to apply and submit an application for Economic Development and Planning & Technical Assistance.
Eligible activities available in the 2022 NOFA must benefit low- and moderate-income Californians and include: Housing Assistance Programs (Single-Family Homeownership Assistance, and Single-Family Housing Rehabilitation); Public Service programs, Planning Studies, Economic Development Business Assistance and Microenterprise activities. The City may apply for a maximum of $1,500,000 for a maximum of three activities.
Closeout of 20-CDBG-CV1-00055
The City was awarded $87,639 in CDBG-CV1 funds in May 2021 in response to the pandemic to aid City of Avenal residents affect by Covid-19 in the form of subsistence payments for utility payments. Permission to incur cost and begin accepting applications was received on December 10, 2020. The program provided income eligible households with up to $1,000 in assistance to cover past due and/or currently due utility expenses for up to 3 consecutive months as grants with no repayment obligation.
Applications Received 169
Households Assisted 79
Applications Denied 90
Households Assisted had Incomes as follows:
Very-low income 45
Low income 27
Moderate income 7
June 23, 2022 Pg. 11
Joint Meeting City Council/Successor Agency/PFA – June 9, 2022
Total 79
Household Demographics:
White 2
Asian 1
Multi-Race 1
Hispanic 72
Unknown 3
Total 79
Female Head of Household 37
Senior Citizens 10
Disabled 0
Budget Total Expenses Disencumbered Funds
Total Admin: $14,899 $14,899 $0
Total Implementation: $72,740 $72,740 $0
The grant expired on May 4, 2022, upon approval the City will submit the final closeout documents to HCD, completing all obligations under the grant. There will be no disencumbering of funds since all funds under this grant were expended.
Economic Development Business Assistance and Microenterprise Program Guidelines to establish a Business Assistance and Microenterprise Loan/Grant Program for local small businesses within the City of Avenal. As a part of this program the City must establish program guidelines outlining the program, eligibility requirements, eligible uses, maximum assistance, and terms of the funding, as well as the approval process, and repayment requirements.
The City proposes to apply for CDBG funds for Economic Development and Planning and Technical Assistance. Economic Development funds will be utilized to provide local businesses with low-interest, no-interest, or forgivable loans and infrastructure in support of businesses. Planning and Technical assistance funding will be utilized to develop the Environmental Justice Element of the City’s General Plan and to complete predevelopment work associated with a future Sewer/Water/Storm Drainage project.
Economic Development –Business Assistance & Microenterprises $ 750,000 Planning & Technical Assistance –
Environmental Justice Element for the City’s General Plan $ 125,000 Planning & Technical Assistance –
Predevelopment work for the City’s Sewer/Water/Strom Drain $ 125,000 $1,000,000
When the Public Hearing is opened, citizens are encouraged to ask questions and/or comment on the proposed activities/applications, closeout of the 20-CDBG-CV1-00055 grant, Business Assistance/Microenterprises Guidelines, or any aspect of the CDBG Program.
Citizens are also invited to submit written comments to the City or to review information on the City’s CDBG Program at Avenal Theater, 233 E. Kings Street, Avenal, CA 93204. Write or contact Maria “Angie” Ortiz, City Clerk, at the same address. Open the public hearing to accept comments on the City’s proposed submittal of an application to apply for the 2022 State Community Development Grant (CDBG) Notice of Funding Availability (NOFA), and to so solicit citizen input. Approve Resolution 2022-35 approving the submittal of the applications.
Approve the 20-CDBG-CV1-00055 grant closed out report and authorize its submittal to the CA Department of Housing and Community Development, Community Development Block Grant Program.
Approve Resolution 2022-36approving the Program guidelines. The cost for preparation of the CDBG applications by Self-Help Enterprises is $4,500.00.
Mayor Preciado opens Public Hearing at 8:39p.m.
Maria Morales asked if they’re going to make water park and if the High School pool will be open Mr. Lopez stated yes, it is in the plans, but applied through a different grant and the pool will be opened. Mayor Preciado Closes Public Hearing at 8:41p.m.
After a brief, discussion the following action was taken.
June 23, 2022 Pg. 12
Joint Meeting City Council/Successor Agency/PFA – June 9, 2022
RESOLUTION NO. 2022-35: A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2022 FUNDING YEAR OF THE STATE CDBG PROGRAM. Councilman Verdugo made a motion to approve, seconded by Councilman Hernandez, and carried.
RESOLUTION NO. 2022-36: A RESOLUTION APPROVING THE ADOPTION OF THE CDBG BUSINESS ASSISTANCE AND MICROENTERPRISE GUIDELINES. Councilman Verdugo made motion to approve, seconded by Councilman Hernandez, and carried.
AYES: Verdugo, Hernandez, Gravelle, Ramirez, Preciado.
NOES: None.
ABSENT: None.
ABSTAIN: None.
OLD BUSINESS:
A. Consider Extending Local Emergency Declared on March 24, 2020:
Mr. Lopez reported that the On March 24, 2020, the Avenal City Council adopted Resolution No. 2020-14 declaring a Local Emergency due to the existence or threatened existence of a local emergency: COVID 19 pandemic. The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists.
On October 28, 2021, the Avenal City Council adopted Resolution No. 2021-48 to satisfy AB 361 to continue Teleconferenced Meetings. AB 361 provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote every 30 days to continue using the bill’s exemption to the Brown Act teleconferencing rules:
• The legislative body has reconsidered the circumstances of the emergency; and • Either of the following circumstances exist: The state of emergency continues to directly impact the ability of members to meet safely in person, or State or local officials continue to impose or recommend social distancing measures.
Staff is recommending the City Council consider the following action by motion:
Approve and support the ongoing local emergency Resolution, and specifically, move to renew the emergency Resolution by sixty (60) days, unless a Councilmember or member of the public request that the Council convene to consider the ongoing emergency Resolution, at which time a special meeting would be scheduled. Additionally, that the Council find that a state of emergency continues to directly impact the ability of members to meet safely in person, and that State and local officials continue to impose or recommend social distancing measures.
Councilman Verdugo motioned to approve as recommended, seconded by Councilman Hernandez, and carried.
Roll Call Vote:
AYES: Verdugo, Hernandez, Gravelle, Ramirez, Preciado.
NOES: None.
ABSENT: None.
ABSTAIN: None.
A. Consider Extending Local Emergency Declared on May 27, 2021:
Mr. Lopez reported that on May 27, 2021, the Avenal City Council adopted Resolution No. 2021-23 declaring a Local Emergency due to the existence or threatened existence of a local emergency: Severe Water Shortage. The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists. Staff is recommending the City Council consider the following action by motion:
Approve and support the ongoing local emergency Resolution, and specifically, move to renew the emergency Resolution by sixty (60) days, unless a Councilmember or member of the public request that the Council convene to consider the ongoing emergency Resolution, at which time a special meeting would be scheduled.
After a brief discussion the following action was taken. Councilman Verdugo motioned to approve as recommended, seconded by Councilman Hernandez, and carried.
June 23, 2022 Pg. 13
Joint Meeting City Council/Successor Agency/PFA – June 9, 2022
Roll Call Vote:
AYES: Verdugo, Hernandez, Gravelle, Ramirez, Preciado.
NOES: None.
ABSENT: None.
ABSTAIN: None.
NEW BUSINESS:
A. Presentation to Identify New Revenue Sources: City Manager/City Attorney.
Mr. Lopez reported that as a continuation on staff and legal counsel’s presentation in August of 2021, staff is returning with topic of discussing the idea of supporting ordinances to place a ballot measure to the voters regarding a dedicated general tax on sales revenue for the City, and another for taxing the sale of cannabis. While the City continues to manage with the funding that it has, general fund revenue growth has not kept pace with the increasing costs of providing services to a growing population and inflated prices. The City’s main sources of revenue are property taxes, sales taxes, DMV fees, and any building and services fees.
The City has the lowest per capita revenue in the County, has a little less than half the national average of police officers per capita for a City our size (18 full time positions to 34 national average), is amongst the lowest paying City employer in the County for most positions (and as such has difficulties retaining employees), and has infrastructure concerns for its buildings, park, roads, sidewalks and public facilities. There are new services that community members expect, that the City does not and cannot provide. The City is fiscally challenged. There is still a window of opportunity for the City to consider supporting a resolution and ordinance to place a local sales tax measure and/or cannabis sales tax measure on the November 2022 ballot.
He continues that some general rules are that the ballot measures for sales tax must be conducted when a council seat is up for election. There can be exemptions of placing it on the ballot at a different time for a fiscal emergency with a 4/5 or unanimous decision. Council’s role is to support taking the decision to the voters, not necessarily approving the tax itself, but the process of having it on the ballot in November and agreeing to spend resources to prepare the ballot and reimburse the County for the having it on the ballot.
Voter Threshold:
All Local Government Taxes Fall in One of Three Categories. New local government taxes generally can be placed into one of three categories: (1) property taxes to finance debt, (2) general taxes, and (3) special taxes. Each of these categories has different rules regarding voter approval.
Simple Majority Approval Is Required for General Taxes. A general tax requires approval by a simple majority of voters. (A simple majority is 50 percent of voters plus one additional voter.) A general tax is a tax (1) levied by a general-purpose government—city or county— and (2) expended, at the discretion of the local government’s governing body, on any programs or services. All non–property taxes which cities and counties are authorized to levy may be imposed as general taxes.
Two–Thirds of Voters Are Required to Approve Special Taxes. Special taxes require approval from two–thirds of local voters. A special tax is a tax that meets one of the following conditions:
▪ Special–Purpose District Tax. All taxes—other than property taxes for infrastructure bonds—levied by special districts, school districts, and community college districts are special taxes. ▪ Tax Dedicated to a Specific Purpose. A city or county tax dedicated to a specific purpose or specific purposes— including a tax for a specific purpose deposited to the agency’s general fund—is a special tax. All non–property taxes that cities and counties are authorized to levy may be raised as special taxes. ▪ Tax Levied on Property. All taxes levied on property other than the property tax— typically parcel taxes—are special taxes.
Staff would recommend focusing on a general tax that could be used for a multitude of City services and would be more likely to be passed by the voters.
Currently sales tax in the City is at 7.25%. While the state takes a large chunk of any sales tax, there is a small room for the City to include a tax. Any tax must be increments of 1/8 of a penny. When speaking of the tax, it would not be in percentages but in pennies to make it easier to understand. At this time Staff has not determined what would be a reasonable amount to request until given direction. Currently sales tax revenue from the previous three fiscal years has hovered between $309,000 to $352,000, from 2019 to June 23, 2022 Pg. 14
Joint Meeting City Council/Successor Agency/PFA – June 9, 2022
present. Staff is working with County finance officials to better understand what the total percentage the City receives and what any increase could potentially yield.
In practice, the Council can place controls on the taxes, such as suspending it if not needed. Council can agree in the resolution, that any tax will be phased in, for example over a year or two years. Ease the burden, and also allow the tax to be suspended all together if enough revenues are coming in and not needed. That can ease taxpayer anxiety, that the tax is not forever, and can be shut on and off as needed. Likewise, whatever amount of tax is determined, would be the threshold of either utilizing the full extent, or even half or less as determined by the Council.
He further continues that Cannabis Sales Tax discussions have gravitated towards a tax on dispensaries and not the community.
Examples of how other cities have adopted is a tax the vendors will have to pay, and in turn they can pass the tax down to the customers – like how the liquor stores function.
Staff understand that the topic of cannabis is controversial. The City at this time does not allow the sale of cannabis/dispensaries, or cultivation which are items that that would need to be addressed separately. Most arguments in favor of a cannabis tax and sale of cannabis are that it is already in the community and regulating it would bring revenues as opposed to expense to patrol its use. There are impacts and costs to dealing with cannabis dealing, the City could generate revenues to help fund emergency response, and services to the entire community. For residents that oppose it, they would not be charged, it would be a charge to the dispensaries and any customers.
As stated, depending on the direction of Council, if a tax were put on the ballot and approved by the voters, Staff will still need to work out the zoning, fees, and other land use policies that need to be created.
The City’s legal counsel has more experience on this topic and can elaborate more on how other Central Valley cities have adopted similar ordinances on cannabis.
Timeline: If the majority of Council is in favor of either a general sales tax, cannabis tax, or both, staff needs direction to work on the details of the financial information and arguments. Legal counsel would play a large part in drafting the ordinances and resolutions.
While some cities hire consultants to work on the financial information, most cities in the Central Valley have been able to do the work in-house, and City Staff feels comfortable taking the challenge.
The deadline to approve a tax ordinance will be by the July 14, 2022, regular City Council meeting, with noticing by July 8.
Afterwards, Staff will need to publish a synopsis of the ballot measure and ordinance, with all documentation submitted to the Kings County Elections Office by August 9, 2022. August 11, 2022, will be the legal deadline for the Council to approve Order of Election, followed by request for alphabetical letter measure designation, and arguments. The election date is November 11, 2022.
Moses Diaz, City Attorney stated that the biggest thing right now is the timeline it is tough time frame. The process for approving local tax is goes through voters is it a bit complex. The first big step is for the Council to agree on an ordinance to limit the tax and that's just basically requires a 2/3 approval of the council to approve the ordinance. The ordinance even though it's approved by Council does not make it effective only by the voters. So, really what you're doing is you're giving them the option to put in their heads do you want these taxes in effect or not. Once the city goes through that process you get voter opinion on November 8th. He thinks it is a tight time frame. The City Council must have the ordinances approved and resolutions approved to request the Election from the County and provide services and that resolution is called in order of election. Then there's other documents that argument documents which the Council would approve or delegate to either the Mayor or Mayor Pro Tem to sign. Staff always want to make sure that we have these documents prepared ahead of time. If the Council was interested in putting this issue to the voters and let them decide. Staff probably want to have the documents ready by the next council meeting or the latest everything submitted to the county by early August. Also, have a little bit of a window to give it to accommodate any issues with accounting may want to address. So, that's basically in terms of the sales tax he did a little research and looks like Kings County the base rate right now everyone in the county has the state minimum sales tax except for City Corcoran they a one penny tax that was approved back in 2017. Also, recommends broad commercial cannabis activity whether it's cultivation dispensary that way we do not have to come back later. Also, keeping in mind that land use and zoning would have to authorize type of use activity.
After a lengthy discussion, Councilman Verdugo likes sale taxes and not cannabis tax, Councilman Hernandez moves forward with both sales tax and broad cannabis, Mayor Pro Tem Ramirez pursue both general sales tax and broad cannabis tax and Mayor Preciado pursue both general taxes and broad cannabis with cultivation as recommend by Moses Diaz, City Attorney. Staff has it direction.
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Joint Meeting City Council/Successor Agency/PFA – June 9, 2022
CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS:
Antony Lopez, City Manager reported the following: 1) Joint meeting with the School District moved to August 25th; 2) the empty lot by Subway creating a pop park. Rotary received a grant and purchasing synthetic grass, picnic tables, shade canopies and if possible electrical outlet for lights. The idea is to have a courtyard park that could be open for the public. Hoping to do a grand opening and invite everyone. Also, towards the back doing a wall with laddus and fake ivy to take pictures working with side property owner to see if they will paint their wall. It will be open from dawn to dust and if they find a power source installing camera; 3) Dollar General has been doing crack sealing at City Hall behind the parking lot. So, parking lots been unavailable today and tomorrow; 4) Community Activities summer staff has started we have three new part timers that we hope to introduce at the next meeting. Also, have a new Police Officer and hope to introduce them at the next meeting; 5) he shared Flyers that the Kings County Commission on Aging is hosting a picnic next Wednesday transportation is available. So, trying to help push that out they'll be leaving from Avenal at 8:30 and be back by 3:30. He is inviting any community members or especially our senior citizens that would like to go; 6) vaccination tomorrow at the rec center through Valley Voices.
Mayor Preciado reported the following: 1) Toyota is looking at a pilot program on the westside, which will be Coalinga, Huron, Avenal. They want Avenal to be part of the program. They are looking giving away 27 hydro cell cars hoping the community can qualify for those cars. He was contacted yesterday and today for press release. They are looking at placing hydro cell charging station; and 2) attended many meetings.
Mr. Lopez, forgot to mention gave copies to City Counsel. The City of Avenal was awarded that grant for the internship program $5000 from the California City Managers Foundation. The City Council went into Closed Session.
ADJOURNMENT:
Mayor reopened meeting at 11:30 with nothing to report. There being no further business the City Council meeting was adjourned at 11:31 p.m.
Respectfully submitted,
Maria Ortiz, City Clerk
June 23, 2022 Pg. 16
City of Avenal
919 Skyline Blvd
Avenal, CA 93204
Phone (559) 386-5766
Fax: (559) 386-0629
TO: The Honorable Mayor & City Council
FROM: Maria Ortiz, City Clerk
DATE: June 8, 2022
RE: Consider Resolution Requesting County Clerk to Render Services for Municipal Elections – November 8, 2022.
INFORMATION:
In accordance with the California Election Code, November 8, 2022, is the date set for the Consolidated Municipal Election. As in the past, the City of Avenal requests that the County Clerk Recorder render specific services to the City of Avenal relating to the conducting of Municipal Election and reimburse the County of Kings in full for services provided by the County.
RECOMMENDATION:
By Resolution, permit the County Clerk of the County of Kings to render services to the City of Avenal.
FISCAL IMPACT:
Exact impact is unknown at this time. Funds will be budgeted in the Draft FY 22/23 Budget.
Department 10.0300.655
AGENDA ITEM .10 – A.
June 23, 2022 Pg. 17
BEFORE THE CITY COUNCIL OF THE
CITY OF AVENAL
IN THE MATTER OF:
A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF AVENAL
REQUESTING THE BOARD OF
SUPERVISORS OF THE COUNTY OF
KINGS TO PERMIT THE COUNTY
CLERK OF THE COUNTY OF KINGS TO
RENDER SPECIFIED SERVICES TO
THE CITY OF AVENAL RELATING TO
THE CONDUCTING OF THE
MUNICIPAL ELECTION TO BE HELD
IN THE CITY OF AVENAL, NOVEMBER
8, 2022, AND APPROPRIATING FUNDS
TO PAY FOR SAID SERVICES.
RESOLUTION 2022-_____
WHEREAS, pursuant to Section 2203 of the Elections Code of the State of California, it is necessary that the City Council of the City of Avenal adopt a Resolution requesting the Board of Supervisors of the County of Kings to render specified services to the City of Avenal relating to the conducting of municipal elections; and
WHEREAS, the Elections Code Section 2203 requires the City of Avenal to reimburse the County of Kings in full for the services performed upon presentation of a bill to the City of Avenal.
NOW, THEREFORE, BE IT RESOLVED, that the City of Avenal hereby requests the Board of Supervisors of the County of Kings to authorize the County Clerk to render the specified services set forth in Exhibit “A” attached hereto, and by reference hereto made a part here of relating to the conducting of a regular municipal election to be held on Tuesday, November 8, 2022, between the hours of 7:00 a.m. and 8:00 p.m. of said day.
BE IT FURTHER RESOLVED that a sum be appropriated and set aside from the General Funds of the City of Avenal to reimburse the County of Kings in full for the services to be provided by the County of Kings upon demand and presentation of a bill to the City of Avenal.
BE IT FURTHER RESOLVED that the City of Avenal authorizes the City Manager, City Clerk and all relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper and/or convenient and/or incidental thereto.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Avenal on June 23, 2022, by the following roll call vote:
June 23, 2022 Pg. 18
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
Alvaro Preciado, Mayor
CITY OF AVENAL
MARIA A. ORTIZ, City Clerk
CITY OF AVENAL
RESOLUTION 2022-____
EXHIBIT A
The following services are requested of the Kings County Clerk:
1. The appointment of election officers and establishing of poll places. If no public building is available, arrangements will be made for rental of private residence.
2. Publish notice of Appointment of Election Officers.
3. Provide official and sample ballots.
4. Mail sample ballots.
5. Mail and receive absent voter ballots.
6. Supply all needed material for polling places, including voting booths, ballot boxes and voting punches.
7. Conduct the election.
8. Canvas the election returns and certify results.
9. Prorate cost of election.
10. Provide a certified bilingual person at each polling location during the entire election proceeding.
June 23, 2022 Pg. 19
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 6. A
TO: The Honorable Mayor and City Council
FROM: Maria A. Ortiz, City Clerk
DATE: June 23, 2021
RE: Designation of Voting Delegates and Alternates to League of California Cities Annual Conference & Expo - September 7-9, 2022.
INFORMATION:
As the City Council is aware, the League's 2022 Annual Conference is scheduled for September 7-9, 2022, at Long Beach Convention Center. An important part of the conference is the Annual Business Meeting, which is scheduled on Friday, September 2, where the League Membership will consider and act on resolutions that establish Cal Cities Policy.
In order to vote at this Business Meeting, the City Council must designate a voting delegate and up to two (2) alternate voting delegates in the event the voting delegate is unable to attend. As per Cal Cities bylaws.
RECOMMEDATION:
By motion: 1) designate voting delegate and alternates for the Annual League Business Meeting scheduled on September 7-9, 2022, at Long Beach Convention Center; and 2) authorize the City Clerk to complete the Voting Delegate form and return it to the Cals Office no later than September 2, 2022. (Roll Call Vote).
FISCAL IMPACT:
None.
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919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
“Pistachio Capital of the World”
“Oasis in the Sun – Gateway to the Coast”
AGENDA ITEM NO. 7. A-1
TO: The Honorable Mayor and City Council
FROM: Humberto Bermudez, IT Manager
DATE: June 20th, 2022
RE: Information Technology Monthly Report June 2021
CURRENT PROJECTS:
Phone System: AT&T is still holding onto our leftover phone numbers. While many of our new phones are active, some phones cannot be called in as they still lead to the old service devices. The same phones can dial out however. Staff continues to work with Verizon, AT&T, and their various divisions to resolve this issue.
Emails: On hold until support reaches back out with a solution.
Server: Staff works on providing full documentation and external resources for all implemented services. Many of our services are command line based so much of the manufacturer documentation needs to be summarized while providing rationale to provide confidence in anyone who may need to manage or repair the server in my absence.
Clerk Software: On hold as City Clerk temporarily fills in for Building Department duties.
Other:
Staff:
-Works with Community Activities to provide a space for the US Department of Justice to hold community leader trainings on June 21st and 22nd.
-Prepares emails and temporary laptops for the summer interns -Prepares a written instruction guide for the poster printer for Community Activities. -Continues to work with KCAG to allow regular remote viewing and participation of their monthly Technical Advisory Committee and Transportation Policy Committee and KCAG Commission meetings.
-Continues to maintain the city website and provide tech support across all facilities. -Prepares a VLAN (Virtual Local Area Network) solution for guests and contractors. -Begins working on policies for tech usage to be submitted for review. These policies will encompass how devices are loaned out, general practices, and security guidelines.
June 23, 2022 Pg. 25
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 8
TO: The Honorable Mayor and City Council
FROM: Dan Bergman, IGS & Antony V. López, City Manager
DATE: June 23, 2022
RE: Public Hearing on Proposed Water and Wastewater (Sewer) Utility Rate Increases for Fiscal Years 2023 - 2027
RECOMMENDATION
City Council is hereby recommended to approve a resolution to adopt revised water and sewer rates, effective July 1, 2022, to cover increased operating costs, bond covenants, cost of service adjustments, and capital projects.
BACKGROUND AND DISCUSSION
Water and sewer rates were last increased July 1, 2021, the last of a series of two percent increases from the previous rate study completed in 2017. Following the drought, water sales remained at the drought levels and have not returned to previous, higher levels.
Operating costs will continue to increase from inflation, and more attention is now focused on critical capital improvement projects for the water system.
Working closely with City staff, Dan Bergmann of IGService has prepared a financial analysis and rate study which is the basis for the revised water and sewer rates. The full rate study is included with this staff report. In summary:
1. Rates need to continue to increase gradually overall to keep up with inflation
2. Some rates have been adjusted significantly both upward and downward to align rates from customer classes more closely to the cost to serve them.
ALTERNATIVES
The alternative is not to increase water and sewer rates. If so, water and sewer revenue will be less than operating expenses, bond covenants will be violated, and critical water system improvement projects will not be funded.
FISCAL IMPACT
For both water and sewer, proposed increases over the next five years are planned to meet operating costs for each enterprise such that these enterprise funds are not a burden on the City’s general fund.
ATTACHMENTS:
1. Proposed Resolution with new water and sewer rates
2. Proposition 218-compliant rate notice
3. IGService Rate Study, dated April 19, 2022
June 23, 2022 Pg. 26
RESOLUTION NO. 2022 - ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL,
CALIFORNIA, INCREASING THE CITY'S WATER AND WASTEWATER UTILITY SERVICE RATES AND CHARGES EFFECTIVE JULY 1, 2022
WHEREAS, the City of Avenal ("City") operates municipal water and wastewater (sewer) utilities providing service to residential, commercial and industrial/institutional customers within the City's service area; and
WHEREAS, due to increasing costs including, but not limited to, collection, transmission, distribution, maintenance, capital projects, financing, billing, and account management, the current rates and charges (hereinafter collectively referred to as "rates") are insufficient to recover the total costs of operating the water and wastewater systems; and WHEREAS, IGService prepared a Water and Wastewater Financial Analysis and Rate Study, dated April 19, 2022, providing explanations and calculations for the determination of reset water and sewer rates; and
WHEREAS, a detailed cost of service analysis has realigned costs for some water and sewer customers such that the rates paid more closely match the cost to serve them; and WHEREAS, the City Council of the City of Avenal discussed the proposed revised rates on March 24, 2022, and April 28, 2022, and supported issuing a rate increase notice to all customers and property owners; and
WHEREAS, the City proposes to increase its water and wastewater service rates in accordance with California Health & Safety Code, Section 5471 in an amount that corresponds to the amount necessary to provide these services. Therefore, the City Council finds, with respect to the revenue derived from the increased rates, that (1) there is a reasonable relationship between the use of the rates increased herein and the services for which they are imposed; (2) the revenue derived from the increased rates does not exceed the amount necessary to provide the services and improvements; (3) the increased rates shall not be used for any purpose other than that for which the rates are imposed; (4) the increased rates do not exceed the proportional cost of the services attributable to each customer; and (5) the increased rates are not levied for general governmental purposes; and
WHEREAS, pursuant to California Proposition 218 (Calif. Constitution, Article XIHD, Section 6) and California Assembly Bill 1260 (Calif. Government Code, Section 53755) at least 45 days prior to the hearing on this Resolution, the City has mailed, postage prepaid, a notice of the public hearing on the proposed water and wastewater rate increases to the address of the parcel owner of record for each identified parcel upon which the increased rates are being proposed, and
WHEREAS, on June 23, 2022, at 5:15 p.m. (or thereafter), the City Council conducted a duly noticed public hearing at which time all those wishing to be heard were afforded an opportunity to be heard, and at which time the City Council considered any and all written protests concerning the proposed rate increases; and
WHEREAS, the City did not receive written or verbal protests from a majority of the identified parcels that would be subject to the proposed rate increase; and WHEREAS, all other prerequisites to the adoption of this Resolution have occurred.
June 23, 2022 Pg. 27
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AVENAL DOES HEREBY RESOLVE:
Section 1. Based on the written and verbal evidence presented to the City Council, the amounts of the water and wastewater service rates, as set forth in Exhibit "A", attached hereto and incorporated by reference herein, are hereby approved and adopted by the City Council of the City of Avenal. The rates set forth herein shall become effective July 1, 2022.
Rates for each subsequent fiscal year shall automatically take effect on July 1 of that fiscal year.
Section 2. Pursuant to Section 15273(a) of the Guidelines for the Implementation of the California Environmental Quality Act ("CEQA"), further review under CEQA is not required because the City Council action increasing service rates within the City is for the purpose of (i) meeting operating expenses, (ii) purchasing or leasing supplies, equipment, or materials for the utility systems, and (iii) obtaining funds for capital projects necessary to maintain system service.
Section 3. The City Clerk shall certify to the passage and adoption of this Resolution; shall cause the same to be entered in the Book of Resolutions of the City of Avenal; and shall make a record of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which the same was passed and adopted.
Section 4. This Resolution shall take effect immediately.
Section 5. If any section, sub-section, sentence, clause, phrase or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Resolution. The City Council hereby declares that it would have adopted the Resolution and each section, sub-section, sentence, clause, phrase or portion thereof, irrespective of the fact that anyone or more sections, sub-sections, sentences, clauses, phrases or portions to be declared invalid or unconstitutional.
PASSED AND ADOPTED at a regular meeting of the Avenal City Council held on the 23rd day of June 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED:
______________________________
Alvaro Preciado, Mayor
ATTEST:
______________________________
Maria A. Ortiz, City Clerk
June 23, 2022 Pg. 28
Exhibit A
Proposed water rates are shown in the table below. The total water service monthly charge includes the Fixed Monthly Charge plus the Volumetric Metered Rate multiplied by the quantity of water used.
Proposed sewer rates are shown in the table below. Monthly charges are fixed based upon the type of customer as identified. The proposed sewer charge will be a flat fee for each separate residential occupancy unit (either detached home or multi-family living unit) connected to the sewer collection system. Non-residential customers who utilize less than 4,000 gallons of water each month will pay a lower flat fee than other non-residential customers since it results less sewage to be treated. Schools are charged based on student count. The state prison charge is based on its individual proportional demand on the sewer system.
7/1/2023 7/1/2024 7/1/2025 7/1/2026
Effective
7/1/21
Percent
Change New Rate 8% 8% 8% 8%
Volumetric Metered Rates
All water ($ / Hundred Cubic Feet) $2.02 22% $2.47 $2.67 $2.88 $3.11 $3.36 All water ($ / Thousand Gallons) $2.70 22% $3.30 $3.57 $3.85 $4.16 $4.49 Fixed Monthly Charges ($/Mo)
Single-Family Dwellings:
5/8" Meter $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 1" Meter $65.73 -57.4% $28.00 $30.24 $32.66 $35.27 $38.09 Multi-family Per Living Unit $26.29 -31.5% $18.00 $19.44 $21.00 $22.68 $24.49 Avenal State Prison $6,309.84 340% $27,763.00 $29,984.04 $32,382.76 $34,973.38 $37,771.25 All Other Customers:
5/8" Meter $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 1" Meter $65.73 0% $65.73 $70.99 $76.67 $82.80 $89.42
1.5" Meter $131.45 0% $131.45 $141.97 $153.33 $165.60 $178.85 2" Meter $210.33 0% $210.33 $227.16 $245.33 $264.96 $286.16 3" Meter $420.65 0% $421.00 $455.00 $491.00 $530.00 $572.00 4" Meter $657.27 0% $657.00 $710.00 $767.00 $828.00 $894.00 6" Meter $1,314.55 0% $1,315.00 $1,420.00 $1,534.00 $1,657.00 $1,790.00 8" Meter $2,103.27 0% $2,103.00 $2,271.00 $2,453.00 $2,649.00 $2,861.00 Effective 7/1/2022
Proposed Rates
City of Avenal Water Rates and Charges
Current Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026
Effective
7/1/2021
Percent
Change New Rate 3% 3% 3% 3%
Residential Customers
Fixed monthly charge for SingleFamily Residential and MultiFamily Residential for each unit $15.47 65% $25.60 $26.37 $27.16 $27.97 $28.81
Non-Residential Customers
Non-residential customers with
average annual water usage less
than four thousand gallons per
month (535 cubic feet)
$50.18 -49% $25.60 $26.37 $27.16 $27.97 $28.81
Non-residential customers with
average annual water usage equal
to or more than four thousand
gallons per month (535 cubic feet)
$50.18 53% $76.80 $79.10 $81.47 $83.91 $86.43
Schools (per student)
Elementary Schools $0.20 250% $0.70 $0.72 $0.74 $0.76 $0.78 Middle School $0.20 355% $0.91 $0.94 $0.97 $1.00 $1.03
High School $0.20 425% $1.05 $1.08 $1.11 $1.14 $1.17
Avenal State Prison $96,608.22 -24% $73,125.00 $75,318.75 $77,578.31 $79,905.66 $82,302.83 Note: The City recommends the installation of separate landscape water meters exempt from the calculation of sewer charges for commercial customers. Customers may also submit written requests to the city manager for the lower sewer rate provided they can demonstrate water usage above 4,000 gallons per month average is being used for landscape purposes.
City of Avenal Sewer Rates and Charges
Current
Monthly
Rates Effective 7/1/2022
Proposed Monthly Rates
June 23, 2022 Pg. 29
919 Skyline Blvd., Avenal, CA 93204 Phone: (559) 386-5766 Fax: (559) 386-0629
CITY OF AVENAL
NOTICE OF PUBLIC HEARING ON
PROPOSED INCREASES IN WATER AND SEWER RATES
To comply with Proposition 218 (California Constitution Article XIIID, Section 6), the City of Avenal gives the following notice.
Public Hearing: At 5:15 p.m. (or thereafter) on Thursday, June 23, 2022, at the Avenal Theater & Event Center, 233 E. Kings Street, Avenal, CA, the Avenal City Council will hold a public hearing on proposed increases in rates for water and sewer service, and to hear and consider objections and protests to the proposed increases described in this notice. Access to the meeting is also available by phone or internet, with specific connection information to be on the City Council Meeting agenda, made available on the City’s website (www.cityofavenal.com) to the public prior to the hearing.
Rate Study Report: A Rate Study Report by IGService, dated April 19, 2022, describing details of the water and sewer rate changes and the method used to calculate the rate changes has been prepared, and the contents submitted to the City Council. The report is available at City Hall and can also be found on the City website.
Amount of Proposed Modified Rates: Existing and proposed rates are included in this Notice. For a typical home using 9,000 gallons per month, the monthly water cost will increase from approximately $51 to $58, and the sewer cost will increase from approximately $15 to $25. Combined, the increase for a typical home will be approximately $17 per month.
Reason for the Needed Increase in Water and Sewer Revenue: For water, the primary reason for the needed overall revenue increase is to cover increasing expenses to provide safe and reliable water to Avenal’s residents, and further to meet bond requirements. For sewer, the overall revenue increase is needed primarily to cover ongoing inflation. For both water and sewer, cost-of-service adjustments have been made for more fairness across customer classes. For example, some multi-family customers and newer single-family homes with one-inch meters may see a decrease in water costs, and Avenal State Prison will see a decrease in sewer costs. Details of the rate changes for both water and sewer can be found in the Report. Revenue from the modified rates and charges will not be more than the funds required for the City to provide adequate service.
Specifically, the proposed rates do not exceed the proportional cost of providing each service.
Procedure for Hearing and Determining Majority Protest: At the time stated above in this Notice, the Council will hear and consider all objections and protests, if any, to the proposed increases and other matters described in the Report. The Council may continue the hearing from time to time. At the close of the hearing, if written protests against the proposed increases are presented and not withdrawn by a majority of the record owners (or customers-of-record) of the parcels which would be subject to the increases, the City may not impose the increased water and sewer rates; instead, rates would continue at their existing levels. If, at the close of the protest hearing, there is no majority protest as described above, the Council may approve the increases, as proposed, or as changed by the Council, to be effective July 1, 2022.
How to Submit a Protest. Protests may be submitted by the record owner or tenant who is a customer-ofrecord of the parcel and subject to the proposed rates, but only one protest per parcel will be counted. Written protests must contain a clear statement that it is a protest against the proposed increases, identify which utility (i.e. water, sewer, etc.) increase is protested and it must include the name of the owner or customer of record, a description of the parcel or parcels (Assessor’s Parcel Number or street address) and an original signature of the owner or customer of record. Written protests regarding the proposed rate changes may be mailed or personally delivered to: City of Avenal, City Clerk, City Hall, 919 Skyline Blvd., Avenal, CA 93204. To be valid, a protest must be in writing and received by the City Clerk at City Hall no later than 4 P.M. on the date of the hearing or, if presented at the hearing itself, before the close of the public hearing on June 23, 2022. Fax or e-mail protests, and copies of protests, are not acceptable and will not be counted.
Preserving the Right to Challenge: Separate from the right to file a protest, any person who wants to preserve the opportunity to file a lawsuit challenging the proposed increases, if imposed, or other matters described in the Report, must state the specific grounds for the objection, and submit that objection in writing prior to or during the public hearing, or orally during the public hearing. Any grounds not provided and received before the close of the public hearing on June 23, 2022, will be deemed waived and may not be raised in any subsequent lawsuit.
Additional Information: Please direct questions about the proposed rate proceeding to Angie Ortiz, City Clerk, at (559) 386-5782, or by email to [email protected]. .
June 23, 2022 Pg. 30
919 Skyline Blvd., Avenal, CA 93204 Phone: (559) 386-5766 Fax: (559) 386-0629 Proposed water rates are shown in the table below. The total water service monthly charge includes the Fixed Monthly Charge plus the Volumetric Metered Rate multiplied by the quantity of water used.
Proposed sewer rates are shown in the table below. Monthly charges are fixed based upon the type of customer as identified. The proposed sewer charge will be a flat fee for each separate residential occupancy unit (either detached home or multi-family living unit) connected to the sewer collection system. Non-residential customers who utilize less than 4,000 gallons of water each month will pay a lower flat fee than other non-residential customers since it results less sewage to be treated. Schools are charged based on student count. The state prison charge is based on its individual proportional demand on the sewer system.
7/1/2023 7/1/2024 7/1/2025 7/1/2026
Effective
7/1/21
Percent
Change New Rate 8% 8% 8% 8%
Volumetric Metered Rates
All water ($ / Hundred Cubic Feet) $2.02 22% $2.47 $2.67 $2.88 $3.11 $3.36 All water ($ / Thousand Gallons) $2.70 22% $3.30 $3.57 $3.85 $4.16 $4.49 Fixed Monthly Charges ($/Mo)
Single-Family Dwellings:
5/8" Meter $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 1" Meter $65.73 -57.4% $28.00 $30.24 $32.66 $35.27 $38.09 Multi-family Per Living Unit $26.29 -31.5% $18.00 $19.44 $21.00 $22.68 $24.49 Avenal State Prison $6,309.84 340% $27,763.00 $29,984.04 $32,382.76 $34,973.38 $37,771.25 All Other Customers:
5/8" Meter $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 1" Meter $65.73 0% $65.73 $70.99 $76.67 $82.80 $89.42
1.5" Meter $131.45 0% $131.45 $141.97 $153.33 $165.60 $178.85 2" Meter $210.33 0% $210.33 $227.16 $245.33 $264.96 $286.16 3" Meter $420.65 0% $421.00 $455.00 $491.00 $530.00 $572.00 4" Meter $657.27 0% $657.00 $710.00 $767.00 $828.00 $894.00 6" Meter $1,314.55 0% $1,315.00 $1,420.00 $1,534.00 $1,657.00 $1,790.00 8" Meter $2,103.27 0% $2,103.00 $2,271.00 $2,453.00 $2,649.00 $2,861.00 Effective 7/1/2022
Proposed Rates
City of Avenal Water Rates and Charges
Current Rates
7/1/2023 7/1/2024 7/1/2025 7/1/2026
Effective
7/1/2021
Percent
Change New Rate 3% 3% 3% 3%
Residential Customers
Fixed monthly charge for SingleFamily Residential and MultiFamily Residential for each unit $15.47 65% $25.60 $26.37 $27.16 $27.97 $28.81
Non-Residential Customers
Non-residential customers with
average annual water usage less
than four thousand gallons per
month (535 cubic feet)
$50.18 -49% $25.60 $26.37 $27.16 $27.97 $28.81
Non-residential customers with
average annual water usage equal
to or more than four thousand
gallons per month (535 cubic feet)
$50.18 53% $76.80 $79.10 $81.47 $83.91 $86.43
Schools (per student)
Elementary Schools $0.20 250% $0.70 $0.72 $0.74 $0.76 $0.78 Middle School $0.20 355% $0.91 $0.94 $0.97 $1.00 $1.03
High School $0.20 425% $1.05 $1.08 $1.11 $1.14 $1.17
Avenal State Prison $96,608.22 -24% $73,125.00 $75,318.75 $77,578.31 $79,905.66 $82,302.83 Note: The City recommends the installation of separate landscape water meters exempt from the calculation of sewer charges for commercial customers. Customers may also submit written requests to the city manager for the lower sewer rate provided they can demonstrate water usage above 4,000 gallons per month average is being used for landscape purposes.
City of Avenal Sewer Rates and Charges
Current
Monthly
Rates Effective 7/1/2022
Proposed Monthly Rates
June 23, 2022 Pg. 31
919 Skyline Blvd., Avenal, CA 93204 Teléfono: (559) 386-5766 Fax: (559) 386-0629
CIUDAD DE AVENAL
AVISO DE AUDIENCIA PÚBLICA SOBRE
AUMENTOS PROPUESTOS EN LAS TARIFAS DE AGUA Y ALCANTARILLADO Para cumplir con la Proposición 218 (Artículo XIIID de la Constitución de California, Sección 6), la Ciudad de Avenal da el siguiente aviso.
Audiencia pública: A las 5:15 p.m. (o posteriormente) el jueves 23 de junio de 2022, en el Avenal Theater & Event Center, 233 E. Kings Street, Avenal, CA, el Concejo Municipal de Avenal celebrará una audiencia pública sobre los aumentos propuestos en las tarifas para el servicio de agua y alcantarillado (drenaje), y para escuchar y considerar objeciones y protestas a los aumentos propuestos descritos en este aviso. El acceso a la reunión también está disponible por teléfono o Internet, con información de conexión específica que estará en la agenda de la Reunión del Concejo Municipal, disponible en el sitio web de la Ciudad (www.cityofavenal.com) para el público antes de la audiencia.
Informe de Estudio de Tarifas: Se ha elaborado un Informe de Estudio de Tarifas de IGService, de fecha 19 de abril de 2022, en el que se describen los detalles de los cambios en las tarifas de agua y alcantarillado y el método utilizado para calcular los cambios de tarifas, y los contenidos presentados al Ayuntamiento. El informe está disponible en el Ayuntamiento y también se puede encontrar en el sitio web de la Ciudad.
Monto de las Tarifas Modificadas Propuestas: Las tarifas existentes y propuestas están incluidas en este Aviso. Para una casa típica que usa 9,000 galones por mes, el costo mensual del agua aumentará de aproximadamente $ 51 a $ 58, y el costo del alcantarillado aumentará de aproximadamente $ 15 a $ 25. Combinado, el aumento para una casa típica será de aproximadamente $17 por mes.
Razón para el aumento necesario en los ingresos de agua y alcantarillado: Para el agua, la razón principal del aumento general de ingresos necesario es cubrir los gastos crecientes para proporcionar agua segura y confiable a los residentes de Avenal, y además para cumplir con los requisitos de bonos. Para el alcantarillado, el aumento general de los ingresos es necesario principalmente para cubrir la inflación en curso. Tanto para el agua como para el alcantarillado, se han realizado ajustes en el costo del servicio para lograr una mayor equidad en todas las clases de clientes. Por ejemplo, algunos clientes multifamiliares y casas unifamiliares más nuevas con medidores de una pulgada pueden ver una disminución en los costos de agua, y la Prisión Estatal de Avenal verá una disminución en los costos de alcantarillado. Los detalles de los cambios en las tarifas tanto para el agua como para el alcantarillado se pueden encontrar en el Informe. Los ingresos de las tarifas y cargos modificados no serán más que los fondos requeridos para que la Ciudad brinde un servicio adecuado. Específicamente, las tarifas propuestas no exceden el costo proporcional de proporcionar cada servicio.
Procedimiento para escuchar y determinar la protesta de la mayoría: En el momento indicado anteriormente en este Aviso, el Consejo escuchará y considerará todas las objeciones y protestas, si las hubiere, a los aumentos propuestos y otros asuntos descritos en el Informe. El Consejo podrá continuar la audiencia de vez en cuando. Al final de la audiencia, si se presentan protestas por escrito contra los aumentos propuestos y no son retiradas por la mayoría de los propietarios de registros (o clientes registrados) de las parcelas que estarían sujetas a los aumentos, la Ciudad no puede imponer el aumento de las tarifas de agua y alcantarillado; en cambio, las tarifas continuarían en sus niveles existentes. Si, al cierre de la audiencia de protesta, no hay una protesta mayoritaria como se describió anteriormente, el Consejo puede aprobar los aumentos, según lo propuesto o modificado por el Consejo, que entrarán en vigencia el 1 de julio de 2022.
Cómo presentar una protesta. Las protestas pueden ser presentadas por el propietario del registro o inquilino que es un cliente de registro de la parcela y está sujeto a las tarifas propuestas, pero solo se contará una protesta por parcela. Las protestas por escrito deben contener una declaración clara de que se trata de una protesta contra los aumentos propuestos, identificar qué aumento de servicios públicos (es decir, agua, alcantarillado, etc.) se protesta y debe incluir el nombre del propietario o cliente registrado, una descripción de la parcela o parcelas (número de parcela o dirección del asesor) y una firma original del propietario o cliente registrado. Las protestas por escrito con respecto a los cambios de tarifas propuestos pueden enviarse por correo o entregarse personalmente a: City of Avenal, City Clerk, City Hall, 919 Skyline Blvd., Avenal, CA 93204. Para ser válida, una protesta debe ser por escrito y recibida por la Secretaria de la Ciudad en el Ayuntamiento a más tardar a las 4 P.M. en la fecha de la audiencia o, si se presenta en la audiencia en sí, antes del cierre de la audiencia pública el 23 de junio de 2022. Las protestas por fax o correo electrónico, y las copias de las protestas, no son aceptables y no se contarán.
Preservar el derecho a impugnar: Aparte del derecho a presentar una protesta, cualquier persona que quiera preservar la oportunidad de presentar una demanda impugnando los aumentos propuestos, si se imponen, u otros asuntos descritos en el Informe, debe declarar los motivos específicos de la objeción y presentar esa objeción por escrito antes o durante la audiencia pública, u oralmente durante la audiencia pública. Cualquier motivo no proporcionado y recibido antes del cierre de la audiencia pública el 23 de junio de 2022, se considerará renunciado y no podrá ser planteado en ninguna demanda posterior.
Información adicional: Dirija sus preguntas sobre el procedimiento de tarifa propuesta a Angie Ortiz, Secretaria de la Ciudad, al (559) 386-5782, o por correo electrónico a [email protected]. .
June 23, 2022 Pg. 32
919 Skyline Blvd., Avenal, CA 93204 Teléfono: (559) 386-5766 Fax: (559) 386-0629 Las tarifas de agua propuestas se muestran en la tabla a continuación. El cargo mensual total del servicio de agua incluye el Cargo Mensual Fijo más la Tarifa Medida Volumétrica multiplicada por la cantidad de agua utilizada.
Las tarifas de alcantarillado propuestas se muestran en la tabla a continuación. Los cargos mensuales se fijan en función del tipo de cliente identificado. El cargo de alcantarillado propuesto será una tarifa plana por cada unidad de ocupación residencial separada (ya sea una casa separada o una unidad de vivienda multifamiliar) conectada al sistema de recolección de alcantarillado. Los clientes no residenciales que utilizan menos de 4,000 galones de agua cada mes pagarán una tarifa plana más baja que otros clientes no residenciales, ya que resulta menos aguas residuales para ser tratadas. Las escuelas se cobran en función del recuento de estudiantes. El cargo de la prisión estatal se basa en su demanda proporcional individual en el sistema de alcantarillado. 7/1/23 7/1/24 7/1/25 7/1/26
Efectivo 7/1/21 Por ciento
cambio Nueva tarifa 8% 8% 8% 8%
Tarifas de medición volumétrica
Toda el agua ($ / Cien pies cúbicos) $2.02 22% $2.47 $2.67 $2.88 $3.11 $3.36 Toda el agua ($ / Mil galones) $2.70 22% $3.30 $3.57 $3.85 $4.16 $4.49 Cargos mensuales fijos ($/mes)
Viviendas unifamiliares:
Medidor de 5/8" $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 Medidor de 1" $65.73 -57.4% $28.00 $30.24 $32.66 $35.27 $38.09 Multifamiliar por unidad $26.29 -31.5% $18.00 $19.44 $21.00 $22.68 $24.49 Prisión Estatal de Avenal $6,309.84 340% $27,763.00 $29,984.04 $32,382.76 $34,973.38 $37,771.25 Todos los demás clientes:
Medidor de 5/8" $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 Medidor de 1" $65.73 0% $65.73 $70.99 $76.67 $82.80 $89.42 Medidor de 1.5" $131.45 0% $131.45 $141.97 $153.33 $165.60 $178.85 Medidor de 2" $210.33 0% $210.33 $227.16 $245.33 $264.96 $286.16 Medidor de 3" $420.65 0% $421.00 $455.00 $491.00 $530.00 $572.00 Medidor de 4" $657.27 0% $657.00 $710.00 $767.00 $828.00 $894.00 Medidor de 6" $1,314.55 0% $1,315.00 $1,420.00 $1,534.00 $1,657.00 $1,790.00 Medidor de 8" $2,103.27 0% $2,103.00 $2,271.00 $2,453.00 $2,649.00 $2,861.00 Efectivo 7/1/2022
Tarifas propuestas
Tarifas y cargos de agua de la Ciudad de Avenal
Tarifas
actuales
7/1/23 7/1/24 7/1/25 7/1/26
Efectivo
7/1/2021
Por ciento
cambio Nueva tarifa 3% 3% 3% 3%
Clientes Residenciales
Cargo fijo mensual para Residencial
Unifamiliar y Residencial Multifamiliar
por cada unidad
$15.47 65% $25.60 $26.37 $27.16 $27.97 $28.81
Clientes no residenciales
Clientes no residenciales con un uso
promedio anual de agua inferior a
cuatro mil galones por mes (535 pies
cúbicos)
$50.18 -49% $25.60 $26.37 $27.16 $27.97 $28.81
Clientes no residenciales con un uso
promedio anual de agua igual o
superior a cuatro mil galones por
mes (535 pies cúbicos)
$50.18 53% $76.80 $79.10 $81.47 $83.91 $86.43
Escuelas (por estudiante)
Escuelas primarias $0.20 250% $0.70 $0.72 $0.74 $0.76 $0.78 Escuela intermedia $0.20 355% $0.91 $0.94 $0.97 $1.00 $1.03 Escuela secundaria $0.20 425% $1.05 $1.08 $1.11 $1.14 $1.17 Prisión Estatal de Avenal $96,608.22 -24% $73,125.00 $75,318.75 $77,578.31 $79,905.66 $82,302.83 Nota: La Ciudad recomienda la instalación de medidores de agua de paisaje (Jardin) separados exentos del cálculo de los cargos de alcantarillado para clientes comerciales. Los clientes también pueden enviar solicitudes por escrito al administrador de la ciudad para la tarifa de alcantarillado más baja, siempre que puedan demostrar que el uso de agua por encima de 4,000 galones por mes promedio se está utilizando para fines paisajísticos (jardin).
Tarifas y cargos de alcantarillado de la Ciudad de Avenal Tarifas
mensuales
actuales Efectivo 7/1/2022
Tarifas mensuales propuestas
June 23, 2022 Pg. 33
15 Shasta Lane, Walnut Creek, CA 94597 Office: 925-946-9090 Cell: 925-899-2578 Email: [email protected] Water and Wastewater Financial Analysis and Rate Study
For
City of Avenal
April 19, 2022
Dan Bergmann, P.E.
Principal
1 Water and Wastewater Financial Analysis and Rate Study For
City of Avenal
I. Purpose .................................................................................................................................... 2 II. Approach to Setting Rates ........................................................................................................ 2 III. WATER RATE STUDY............................................................................................................. 3 IV. Water System Capital Improvements........................................................................................ 3 V. USBR Water Supply Contract ................................................................................................... 3 VI. Water Revenue, Expense, and Fund Balance........................................................................... 3 VII. Existing Water Rates ................................................................................................................ 5 VIII. Cost-of-Service Analysis ........................................................................................................... 5 IX. Proposed Water Rates.............................................................................................................. 8 X. WASTEWATER (SEWER) RATE STUDY.............................................................................. 10 XI. Sewer System Capital Projects ............................................................................................... 10 XII. Sewer Revenue, Expense, and Fund Balance ........................................................................ 10 XIII. Existing Sewer Rates.............................................................................................................. 11 XIV.Cost-of-Service Analysis and Proposed Rates........................................................................ 12 XV. CONCLUSION: Effect on a Typical Residential Customer................................................ 15 XVI.ATTACHMENTS..................................................................................................................... 16 A. Water Revenue, Expense, and Fund Balance Table (Historical and Projected)............... 16 B. USBR Projected Water Costs for FYE 23 ........................................................................ 17 C. Water Cost of Service Allocation Model........................................................................... 18 D. Water Cost of Service Allocation Model (Cont.) ............................................................... 19 E. Water Cost of Service Allocation Model (Cont.) ............................................................... 20 F. Modeling to Set Fixed and Volumetric Rates ................................................................... 21 G. Present and Proposed Water Rates ................................................................................ 22 H. Sewer Revenue, Expense, and Fund Balance Table (Historical and Projected) .............. 23 I. Detailed Calculations for School Sewer Rates per Student.............................................. 24 J. Sewer Cost Model (Existing and Proposed Revenue by Customer Class)....................... 25 K. Present and Proposed Sewer Rates................................................................................ 26 L. Proposition 218-Compliant Rate Increase Notice (Draft).................................................. 27 2 I. Purpose
The purpose of this cost-of-service rate study is to evaluate the water and wastewater (sewer) enterprise funds to reset rates such that revenue is adequate for safe and reliable operation into the future. The approach to setting rates is outlined in this study. This work complies with the requirements of California’s Proposition 218 when raising water and sewer rates. In general, this means:
• A rate study is conducted to support the revenue needed for each enterprise fund.
• Each customer group pays its proportionate share of costs. • Revenue from rates from each enterprise fund is used only for that fund’s purposes.
• Customers are notified in writing of the rate increases, the reasons why, information about the rate hearing that will be held after 45 days, and that they may protest in writing.
• If more than 50 percent of customers (parcel owners) protest, the increase may not happen.
II. Approach to Setting Rates
This report includes two rate studies, one for water and another for wastewater (sewer). Each enterprise fund is handled separately; however, they are both conducted in the following sequential steps.
1. Audited financials are reviewed to observe history of revenues, expenses, and changing fund balances.
2. Accounting reports are reviewed to bridge the time frame between the end of the last audit and into the current fiscal year. The budget is reviewed for the current fiscal year and next fiscal year, when available.
3. Operating expense projections are developed for the next five years.
4. Billing data is related for all billing cycles, including all customers from the most recent complete fiscal year. Billing data is reconciled to audited financial values and accounting reports, as appropriate.
5. Billing data is divided into appropriate customer classes to determine revenue collected from each customer class.
6. Cost of service modeling is done to assign overall costs between defined customer classes, based on system costs to serve each customer class. 3 7. Rate models are constructed for each enterprise to achieve the revenues needed for FYE 23 based on the revenue and expense workbooks, including debt service associated with bond funding. The models demonstrate that established rates achieve the revenue needed for each customer class.
III. WATER RATE STUDY
IV. Water System Capital Improvements
Many aspects of the water system have aged and needs repairs or replacement. Over the past year, the city has been able to cover some project costs by utilizing funding from the federal government through The American Rescue Plan Act of 2021 (ARPA). However, those funds are not enough for ongoing improvement needs of the water system. Two example projects are as follows. The State Water Resource Control Board has notified the city that it is currently in violation of the maximum allowable limit for Total Trihalomethanes (TTHM); therefore, the city must modify and improve its water treatment process to comply. Secondly, the Supervisory Control and Data Acquisition (SCADA) system at the water plant is outdated to the point where replacement parts are not available. The SCADA system must be updated in the next few years. Each of these project will be in the $1 million to $3 million range and must have funding available. From this rate study, revenue is planned over the five-year rate-setting period to allow for $2.6 million in water project expenditures.
V. USBR Water Supply Contract
Avenal receives its entire water supply from the Central Valley Project operated by the United States Bureau of Reclamation (USBR). The “Water Infrastructure Improvement for the Nation Act of 2016” (WIIN Act) directed USBR to convert water service contracts to repayment contracts upon a contractors request. The WIIN Act allowed the City to enter a new agreement with USBR into “perpetuity,” meaning the new agreement has no termination date. However, one requirement for the new agreement was that the City pay USBR the full remaining balance of “Allocated Contractor Construction Costs” associated with the present USBR cost structure.
The payment made in 2021 was $407,597. The 2021 USBR rate structure included a cost component of $34.19 per acre-foot to pay for the past construction costs. The new agreement has the same rates as present, but without the construction cost component. Beyond the annual cash flow savings due to the removal of the construction cost component, the WIIN agreement benefits the City by guaranteeing a long-term supply of water from USBR. The stability of this agreement also helps with the acquisition of future debt funding, if needed, for the water system.
VI. Water Revenue, Expense, and Fund Balance
Water revenue and expense historical data is based on a combination of audited financials for FYE 19 and on unaudited trail balance data thereafter. (The city is still in the process of 4 completing its annual financial audits.) Water sale volumes over the past several years have been fairly constant. Water revenue has increased slightly each year because of the two percent annual increases beginning FYE 18 from the previous water and sewer rate study completed in November 2017. Projected volumes of wholesale water are held constant at 2,624 acre-feet (855 million gallons). Corresponding sales are based on 706 million gallons, as result of the present unbilled amount of 21 percent. See the Revenue section of Attachment A.
Water expenses have been increasing in various categories as shown in the expenses section of Attachment A. For the past few years, it appears the bond covenant has not been met, which requires Net Income Available for Debt Service to exceed debt service by a minimum factor of
1.25. Based on preliminary data for FYE 22, the ratio will be 0.52, which implies that net income was inadequate to cover debt service and therefore fund balance cash is used to cover debt.
Consequently, a rate increase is necessary to meet the existing bond covenant before an additional added rate increase increment to cover projected increased operating costs.
Projected expenses through FYE 27 include inflationary factors shown at the right side of the table in Attachment A. Most inflationary factors are three percent; however, personnel costs are shown at five percent based on increases in retirement funding, and electricity is at 15 percent, based on recent press releases from PG&E. The pie chart at the top of the next page shows the cost breakdown for a thousand gallons of water based on FYE 23 costs. The significant component is PG&E electricity because of the cost to pump water over the hill to Avenal from the water treatment plant. Electricity is the single largest cost component. There is no cost component shown for projects in the expenses section because projects will be funded from excess revenue resultant of debt service coverage and from excess fund balance. See the bottom section of the table regarding planned project funding. Monthly detail of projected USBR water supply costs is shown in Attachment B.
The Series 2005 Bond Debt Service schedule is shown at the bottom of Attachment A. The original principal amount of these bonds was $9,660,000. Remaining debt service payments average $302,000 per year through FYE 37. The required debt service coverage ratio is for net revenue available for debt service to be 1.25 times the annual debt service payment.
Revenue beginning in FYE 23 is increased to achieve healthy debt service coverage over the planning period. The result is an initial 18 percent increase to be effective July 1, 2022. This is necessary to achieve the required 1.25 debt service coverage ratio for the first planning year of FYE 23. For each of the next four years, subsequent eight percent increases are needed to cover the accelerated costs of inflation. These increases result in achieving debt service coverage ratios in excess of 2.00, safely above the requirement of 1.25, which also provide excess cash that will be needed for projects.
5 The present water enterprise fund cash balance is estimated to be $2.7 million, as shown along the bottom line of the table. Projections of the fund balance allow for project spending of $500,000 per year, leaving the fund balance slightly lower at $2.1 million at the end of five years. However, $2.1 million is approximately six months of revenue and should be adequate for the cash reserve.
VII. Existing Water Rates
The existing water rate structure for the city was not altered in the 2017 rate study. The 2017 study increased overall rates two percent per year over that five-year planning period.
Presently, all customers pay the same volumetric rate of $2.02 per Hundred Cubic Feet (HCF), which is $2.70 per Thousand Gallons (TG). The fixed monthly cost increases are based on meter size except for multi-family customers who pay the standard cost of $26.29 for a 5/8-inch meter, multiplied by the number of units in each building supplied by a given meter. If a dedicated landscape meter also serves a multi-family unit, that fixed monthly charge is added.
Avenal State Prison pays the standard rate for each of its two 10-inch meters.
VIII. Cost-of-Service Analysis
Proposed water rates are adjusted to match the cost-of-service for four newly established customer classes appropriate to Avenal’s small size. Customer classes are Single-Family, Multi-Family, Commercial, and Avenal State Prison (CDC). The bar chart below shows the cost-of-service result for each customer class compared to the projected average cost of $5.28 per TG for the FYE 23 planning year.
6 The cost-of-service analysis was conducted based on American Water Works Association Manual of Water Supply Practices “M1.” Defined cost components for Avenal are commodity, capacity, distribution, and billing & customers services. Cost allocation detail is shown in Attachments C, D, and E. Single-family customers have the highest average cost of service caused by the higher capacity component from summer peaking and the highest customer services cost. CDC has the lowest average cost because of a lower peaking charge, lower distribution costs, and lower customer services costs. The CDC cost-of-service amount is significantly below the average cost for the overall system, and all below other customer classes.
The bar chart below shows the present average contribution per TG from each customer class compared to the updated cost per TG.
7 Most noticeable is that the present average contribution from CDC is significantly below both the system average and below the updated cost of service average for CDC. The present CDC contribution is disproportionately low because the proportion of fixed monthly contribution from CDC is much lower than other customer classes. Specifically, CDC moves a very large volume of water through its meters compared to the fixed monthly cost for the meters, which is just nine percent of the total. Whereas other customer classes pay a much higher proportion for the fixed cost. For example, residential customers pay 50 percent on average. This creates an inequity as a result of all customers paying the same volumetric price.
Second in significance is that the present contribution from multi-family is higher than the new cost-of-service average. This is because each unit in a multi-family dwelling is presently charged the fixed monthly rate of $26.29 for a 5/8-inch meter. The result is a contribution that is too high because water usage for a typical apartment or condominium is less than water usage for a typical home. This is especially true when a complex has separate landscape meters.
Third, though not illustrated in the bar chart, is that newer single-family homes are required to have one-inch meters to support fire systems therefore they are charged the cost for a one-inch meter, which is presently $65.73, or 2.5 times the cost for a 5/8-inch meter. The result is that customers with fire systems are paying significantly more for water service only because they have a fire system that will likely not be used. Additionally, if it were used, water flow through 8 the fire system could potentially place less demand on the water system because higher flow through hydrants may not be needed if the fire system extinguishes the fire.
IX. Proposed Water Rates
The combination of rate modifications to the four customer classes in the first year is an overall revenue increase of 18 percent, consistent with revenue requirement. Rate modifications in the first year vary based on output from the cost-of-service model. Rate increases in the second through fifth year are applied evenly to all customers based on the consecutive eight percent increases.
The approach to rate setting was to hold the volumetric rate constant for all customer classes, then adjust the fixed monthly costs to achieve equity across the customer classes. The proposed increase in the volumetric rate is 22 percent from $2.70 per TG to $3.30 per TG.
The monthly fixed cost for single-family customers is increased on average 6.5%; however, this includes a reduction for approximately 100 single-family customers paying the higher rate for one-inch meters. Those customers will see a significant reduction in their fixed monthly cost.
The overall increase to the single-family group is 14 percent, lower than the 18 percent revenue requirement increase because single-family and other groups were previously subsidizing CDC.
The monthly fixed cost for multi-family is reduced 32 percent to achieve the cost-of-service amount for multi-family. This means that whereas single-family homes will pay $28.00 per month in fixed costs, multi-family will pay a lower amount of $18.00 for each unit in a multifamily complex.
For commercial customers, which includes commercial, schools, city accounts, and irrigation (except CDC), the fixed monthly costs for increasing meter sizes are unchanged. The relatively lower revenue increases needed from these customers is achieved through the increased volumetric rate alone. This is favorable to water conservation, as customers that use less water will see the same fixed monthly cost but will pay more only for water volume.
Finally, the most significant change is for CDC. Whereas the volumetric rate for CDC (and all customers is increased 22 percent, the fixed monthly rate must be increased dramatically to accomplish the cost-of-service result. Presently, CDC pays for two ten-inch meters for a total of $6,310 per month. The proposed fixed monthly cost for CDC is $27,763 per month. This amount, combined with the increased volumetric rate results in an average contribution of $4.41 per TG, which is still significantly below the system average cost of $5.28 per TG.
The model used to allocate fixed and volumetric costs between customer classes is shown in Attachment F. A key component of this rate setting model is it first generates existing revenue based on the current rate structure, current customer count by meter size, and volumes sold over the FYE 22 baseline year. This confirms the model is valid to generate accurate revenue with modified rates.
9 The rate table showing present and proposed rates is shown in Attachment G. Proposed increases for the second through fifth planning year are relatively high at eight percent per year.
These increases are driven primarily by PG&E press releases, supported by recent regulatory filings, that overall electricity costs will increase as much as 22 percent per year for five years.
The projected electricity increases in this rate study are lower at 15 percent, more appropriate to the industrial rate schedules serving the water plant. The recommendation is to accept the subsequent eight percent increases to cover increasing PG&E and other inflationary increases.
However, city council may reduce or waive entirely any subsequent increase by a simple majority vote. It is recommended that annual financial reviews be conducted of the water enterprise, focused mainly on the debt service coverage covenant requirement being met. If PG&E costs for Avenal do not increase at an average of 15 percent per year, and other water system costs do not increase as modeled, city council may potentially reduce the increases. A second significant variable to expense forecasts is that audited financial statements may reveal changes in cost from the unaudited data (FYE 20, 21, and 22) that may impact the need for rate adjustments.
Finally, the cost comparison on the next page shows Avenal on the upper end of cost compared to nearby communities. The first reason is that Avenal purchases more expensive water from USBR, like Coalinga and Huron, whereas the other communities benefit from well water. The second reason for Avenal is the high cost of pumping water over the hill from the water treatment plant to the city.
10 X. WASTEWATER (SEWER) RATE STUDY
XI. Sewer System Capital Projects
Capital improvement needs for the sewer system are minimal compared to the water system.
Some projects have been completed over the past year using ARPA funds. The most significant planned project at the wastewater treatment plant is installation of photovoltaic electricity generation. This project is funded by grant money and some of the equipment, including the panels, are already on site. Completion of the solar project is important because of the large projected increases in PG&E electricity costs. Other improvement projects over the next five years are minor and do not require significant capital planning.
XII. Sewer Revenue, Expense, and Fund Balance
As with the water rate study, sewer revenue and expense historical data is based on a combination of audited financials for FYE 19 and on unaudited trail balance data thereafter.
Sewer revenue over the past five years has been increasing at approximately two percent per year, based on the 2017 rate study increases. Monthly revenue is constant because all customers are billed a monthly fixed cost. Detail of sewer revenues and expenses can be found in Attachment H.
Again, similar to the water rate study, electricity costs are escalated at 15 percent per year.
However, in the case of the sewer enterprise, the solar project is expected to offset 85 percent of future electric costs, beginning for FY 22/23. This annual offset is shown as a negative expense in the expense section of the table. Essentially, the higher PG&E electricity costs go, the more valuable solar becomes. Installation of the solar project allows for lower revenue increases going forward. (If the solar project is not installed and PG&E costs escalate at the 15 percent value used, the sewer enterprise fund is projected to consume $1.4 million of fund balance for additional PG&E electric costs not generated by solar.) The Avenal sewer enterprise fund has no long-term debt, therefore no debt service covenant for a coverage ratio. The present fund balance is healthy at approximately $3 million, which is 1.8 years of revenue based on present rates. Therefore, the basis for setting the ongoing overall revenue requirement is maintaining a responsible fund balance that will be needed eventually for capital improvement to aging infrastructure.
The recommended increases for sewer revenue over the five-year planning period are three percent per year, which are needed to keep up with inflation. If no significant projects are completed over the planning period, the fund balance is projected to be approximately the same at the end of five years. If projects happen, the fund can afford up to $1 million in project expenditures and still allow the remaining fund balance to cover a year’s revenue. 11 XIII. Existing Sewer Rates
Like water rates, the existing sewer rate structure for the city was not altered in the 2017 rate study. The 2017 study only increased overall rates two percent per year over the five-year planning period. As Avenal is a small community, the sewer rate structure is simplified for ease of administration. All customers are on fixed monthly rates without ongoing measurement of volume or consideration of concentration of discharge.
The rate for single-family residential is presently $15.47 per month, which is the lowest of all surrounding communities. Multi-family residential pays $15.47 times the number off housing units in each complex. All other customers except schools and Avenal State Prison pay $50.18 per month.
The two elementary schools, one middle school, and one high school pay $0.20 per student per month. A review of the student count shows the current student count to be close to the implied count based on $0.20 per student. However, the total contribution from the four schools is presently only $487.60 per month because $0.20 per student is low for the costs associated with the schools
Avenal State Prison pays a fixed monthly rate of $96,608.22 and is the largest customer on the system. Influent from the prison is 50 percent of total influent into the wastewater treatment plant. This is significant because present revenue received from the prison represents 68 12 percent of overall revenue to operate the sewer system. Accordingly, whereas the prison was subsidized by other customers in the water enterprise, the prison is subsidizing other customers in the wastewater enterprise.
All commercial and other customers pay $50.18 per month, regardless of size. In a small community, simplified rates are acceptable, but the city has received complaints from the smallest commercial customers that the rate is too high, especially where a small business may have only a bathroom and sink. The commercial rate of $50.18, at 3.2 times the residential rate, is relatively high for a very small customer.
XIV. Cost-of-Service Analysis and Proposed Rates
A simplified cost of service approach for the sewer system is to first assign 50 percent of projected system costs to Avenal State Prison, consistent with the prison contributing 50 percent of influent into the treatment plant. For the prison, this is a significant decrease from the previous contribution.
The cost to serve the schools increases from the rate from $0.20 per student per month to $0.70 for elementary, $0.91 for middle, and $1.05 for high school. Though the increase per student for the schools is significant, the overall change in revenue contribution to the system is small because there are only four schools. The small contribution of the schools (and commercial too) is shown in the bar chart below. The cost allocation to the schools increases from the 13 original small amount of $463 per month to a more proportionate $2,085 per month. The detailed analysis is in Attachment I.
The remaining cost is allocated between commercial and residential customers. The multiplier for commercial customers is reduced from 3.2 times the residential rate to 3.0. Further, the model is set such that the 40 commercial customers using water less than 4,000 gallons per month average pay the same as the new residential rate. This way small commercial customers using the approximate winter baseline water usage as a home pay the same as a home. The remaining 60 commercial customers use more water than 4,000 gallons per month and pay the higher commercial rate.
The new single-family baseline rate is determined to be $25.60 per month, and the new commercial rate is $76.80. These combined with the contribution from the prison and the schools provided the projected $1,755,000 needed for the FYE 23 planning year. The rate setting model is shown in Attachment J and the proposed rate table in Attachment K. As with the water model, the sewer model first calculates existing revenue based on customer counts and existing rates for the FYE 22 baseline year. This confirms the validity of the model for rate changed and future revenue projections.
Sewer rates are significantly modified in the first year, similar to water. However, the overall sewer revenue increases needed are much less than water because sewer has no debt service coverage requirement and sewer will have the benefit of solar power. After the first year, the 14 three percent increases to sewer rates will be applied evenly to each customer group. Finally, the financial status of the sewer enterprise should be monitored closely and especially checked as audited financial data become available for FYE 20 and forward. As with water, the city council may decide to suspend rate increases, however, this is less likely for sewer with only three present ongoing increases.
Though the single-family baseline rate is increased substantially from $15.47 to $25.60, the comparison analysis below shows Avenal’s proposed rates to be consistent with surrounding communities.
15 XV. CONCLUSION: Effect on a Typical Residential Customer Increased operating costs necessitate the need for water and sewer rate increases. For the water enterprise, the increases are significant because existing revenue is inadequate to cover existing expenses and does not meet the debt service covenant of the 2005 bonds. Further, electricity costs are expected to increase substantially over the next several years. For the sewer enterprise, the proposed increases are less substantial, but still needed to keep up with inflation. Even so, the increase for single-family customers is substantial in the first year primarily to cover the subsidy previously provided by the prison. The bar chart below shows the impact on a median residential customer over the five-year planning period, including other utilities billed by the city of Avenal.
16 XVI. ATTACHMENTS
A. Water Revenue, Expense, and Fund Balance Table (Historical and Projected) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
2019 2020 2021 2022 2023 2024 2025 2026 2027
Audited Unaudited Unaudited Projected Projected Projected Projected Projected Projected Increases: 18.0% 8% 8% 8% 8%
USBR Water Purchases (MG) 830 857 855 855 855
Total Operating Revenue $2,776,446 $2,904,000 $3,086,000 $3,148,000 $3,725,000 $4,023,000 $4,345,000 $4,693,000 $5,068,000 Operation & Maintenance Expenses: Inflation
Personnel 990,527 796,044 739,543 777,000 816,000 857,000 900,000 945,000 900,000 5% Operations 233,693 248,861 258,821 267,000 275,000 283,000 291,000 300,000 291,000 3% Chemicals 138,207 143,518 153,917 159,000 164,000 169,000 174,000 179,000 184,000 3% Professional Services 75,101 42,750 75,853 78,000 80,000 82,000 84,000 87,000 90,000 3% Franchise 84,172 87,506 93,789 97,000 100,000 103,000 106,000 109,000 106,000 3% Electricity 617,642 645,753 705,049 811,000 933,000 1,073,000 1,234,000 1,419,000 1,632,000 15%USBR Water Supply 215,297 312,973 417,685 406,000 396,000 408,000 420,000 433,000 446,000 3% USBR WIIN Act Contract - - 407,597 - - - - - - n/a
Administration 327,792 326,694 362,841 437,000 451,000 465,000 479,000 493,000 508,000 3% Depreciation & Amortization 525,542 517,533 - - - - - - - n/a Total Operating Expenses 3,207,973 3,121,632 3,215,095 3,032,000 3,215,000 3,440,000 3,688,000 3,965,000 4,157,000 Operating Income/(Loss) (431,527) (217,632) (129,095) 116,000 510,000 583,000 657,000 728,000 911,000 Non-Operating:
Connection Fees 26,463 5,705 24,238 20,000 20,000 20,000 20,000 20,000 20,000 Other Revenue 31,143 26,433 20,630 25,000 25,000 25,000 25,000 25,000 25,000 Interest Income 28,008 16,977 20,608 20,000 20,000 20,000 20,000 20,000 20,000 Interest Expense (183,268) (167,427) (174,305) - - - - - - Total Non-Operating (97,654) (118,312) (108,829) 65,000 65,000 65,000 65,000 65,000 65,000 Transfer In (Out) 21,044 0 0
Change in Net Position (508,137) (335,944) (237,924) 181,000 575,000 648,000 722,000 793,000 976,000 Debt Service Coverage Calculation:
Operating Income (431,527) (217,632) (129,095) 116,000 510,000 583,000 657,000 728,000 911,000Depreciation & Amortization 525,542 517,533 0 0 0 0 0 0 0 WIIN Contract One-Time Expense - - 407,597 - - - - - -
Other Revenue 31,143 26,433 20,630 25,000 25,000 25,000 25,000 25,000 25,000 Interest Income 28,008 16,977 20,608 20,000 20,000 20,000 20,000 20,000 20,000 Net Income Available for Debt Service 153,166 343,311 319,740 161,000 555,000 628,000 702,000 773,000 956,000Series 2005 Bond Debt Service (P&I) $310,339 $309,306 $307,851 $310,988 $308,500 $305,250 $306,500 $307,375 $302,875 Debt Service Coverage Ratio 0.49 1.11 1.04 0.52 1.80 2.06 2.29 2.51 3.16 Excess Cash After Debt Service ($157,173) $34,005 $11,889 ($149,988) $246,500 $322,750 $395,500 $465,625 $653,125 Project Portion From Rate Increase (247,000) (323,000) (396,000) (466,000) (653,000) (2,085,000) Project Portion Lowering Cash Balance (253,000) (177,000) (104,000) (34,000) (568,000) Total Project (500,000) (500,000) (500,000) (500,000) (653,000) (2,653,000) Ending Total Current Assets 2,866,040 2,900,000 2,912,000 2,762,000 2,509,000 2,332,000 2,228,000 2,194,000 2,194,000
AVENAL WATER ENTERPRISE FUND
For the Fiscal Years Ending June 30,
17 B. USBR Projected Water Costs for FYE 23 Month AF Purchase Contract Rate Contract Total Restoration Rate Restoration Total Trinity Rate Trinity Total Total Jul-22 294 $27.73 $8,144.09 $22.46 $6,596.33 $0.15 $44.05 $14,784 $100.00 $29,369 Aug-22 279 $27.73 $7,738.17 $22.46 $6,267.55 $0.15 $41.86 $14,048 $100.00 $27,905 Sep-22 275 $27.73 $7,627.53 $22.46 $6,177.95 $0.15 $41.26 $13,847 $100.00 $27,506 Oct-22 240 $27.73 $6,665.90 $22.46 $5,399.07 $0.15 $36.06 $12,101 $100.00 $24,039 Nov-22 184 $27.73 $5,115.38 $23.00 $4,242.83 $0.15 $27.67 $9,386 $100.00 $18,447 Dec-22 177 $27.73 $4,911.14 $23.00 $4,073.43 $0.15 $26.57 $9,011 $100.00 $17,711 Jan-23 178 $27.73 $4,934.11 $23.00 $4,092.48 $0.15 $26.69 $9,053 $100.00 $17,793 Feb-23 157 $27.73 $4,360.54 $23.00 $3,616.75 $0.15 $23.59 $8,001 $100.00 $15,725 Mar-23 175 $28.00 $4,887.63 $23.00 $4,014.84 $0.15 $26.18 $8,929 $100.00 $17,456 Apr-23 204 $28.00 $5,709.11 $23.00 $4,689.63 $0.15 $30.58 $10,429 $100.00 $20,390May-23 223 $28.00 $6,232.42 $23.00 $5,119.49 $0.15 $33.39 $11,385 $100.00 $22,259Jun-23 238 $28.00 $6,669.80 $23.00 $5,478.76 $0.15 $35.73 $12,184 $100.00 $23,821Totals 2,624 $72,995.82 $59,769.10 $266.46 $133,159 $262,421 MG 855 $463.13 per MG
Projections $0.46 per TG
Combined Total
$396,000
2022/2023 City of Avenal USBR Water Cost Projections
SLDMWA
18 C. Water Cost of Service Allocation Model
Cost Component ($/yr) Total SF MF Com CDC
Commodity $2,132,200 $682,114 $256,074 $303,994 $890,018 Capacity 673,800 306,441 78,641 93,040 195,679
Distribution 778,000 314,538 118,081 140,178 205,203
Billing & Customer Services 141,000 103,160 20,037 9,217 8,587 Total Revenue Requirement 3,725,000 1,406,252 472,832 546,429 1,299,487 Revenues at Present Rates 3,147,000 1,216,000 520,000 540,000 871,000 Balance/(Deficency) of Funds (578,000) (190,252) 47,168 (6,429) (428,487) Treated Water Sales (TG) 706,100 225,900 84,800 100,700 294,700 Cost of Service ($/TG) 5.28 6.23 5.58 5.43 4.41
Present Revenue ($/TG) 4.46 5.38 6.13 5.36 2.96
Change (%) 18.4% 16% -9% 1% 49%
Total SF MF Com CDC
Commodity $3.02 $3.02 $3.02 $3.02 $3.02
Capacity $0.95 1.36 0.93 0.92 0.66
Distribution $1.10 1.39 1.39 1.39 0.70
Billing & Customer Services $0.20 0.46 0.24 0.09 0.03
Total $5.28 $6.23 $5.58 $5.43 $4.41
New Average $5.28 $5.28 $5.28 $5.28 $5.28
Old Average $4.46 $4.46 $4.46 $4.46
Avenal Water Enterprise Revenue Requirement Allocation Table Summary Statistics
Cost of Service Detail by Customer Sector in $/TG
19 D. Water Cost of Service Allocation Model (Cont.) Account Description FY22/23 Total Total (Calculated) Commodity Capacity Dist Billing & Customer Services Comments Plant - Personnel 353,000 353,000 247,100 105,900 - - 70/30 Split, based on overall system capacity factor of 1.3 Distribution - Personnel 463,000 463,000 - - 463,000 - 100% Distribution Vehicles, Equipment, Maint 202,000 202,000 70,700 30,300 101,000 - 50/50 Commodity + Capacity (70/30), then Distribution Other O&M, Supplies, Misc 275,000 275,000 96,250 41,250 137,500 - 50/50 Commodity + Capacity (70/30), then Distribution Professional Services 80,000 80,000 28,000 12,000 40,000 - 50/50 Commodity + Capacity (70/30), then Distribution Chemicals 164,000 164,000 164,000 - - - 100% Variable Electricity 854,000 854,000 597,800 256,200 - - 70/30 assuming 30% electric capacity charges in summer. USBR Wholesale Water 396,000 396,000 396,000 - - - 100% Variable Billing and Customer Service 141,000 141,000 - - - 141,000 100% Billing and Customer Service General Government & Public Safety 108,000 108,000 75,600 32,400 - - 70/30 Split, based on overall system capacity factor of 1.3 Franchise 100,000 100,000 35,000 15,000 50,000 - 50/50 Commodity + Capacity (70/30), then Distribution Major Repair 0 0 0 0 0 - 50/50 Commodity + Capacity (70/30), then Distribution Series 2005 Debt 308,000 308,000 215,600 92,400 - - 70/30 Split, based on overall system capacity factor of 1.3Debt Service Coverage @ 2.00 308,000 308,000 215,600 92,400 - - 70/30 Split, based on overall system capacity factor of 1.3Rounding -27,000 -27,000 -9,450 -4,050 -13,500 50/50 Commodity + Capacity (70/30), then DistributionTotals 3,725,000 3,725,000 2,132,200 673,800 778,000 141,000 100% 57% 18% 21% 4%
Functionalization and Classification of Revenue Requirement 20 E. Water Cost of Service Allocation Model (Cont.) MG/Yr Treated Sales % Losses MG/Yr before Losses Commodity Allocation % Avg Mo MG Peaking Factor Peak Mo MG Peaking - Average Peak Capacity Allocation % SF 225.9 21.0% 273 32% 18.8 1.44 27.1 8.3 45% August 2020 MF 84.8 21.0% 103 12% 7.1 1.30 9.2 2.1 12% Set at 1.3 Com/City/Sch 100.7 21.0% 122 14% 8.4 1.30 10.9 2.5 14% Set at 1.3 CDC 294.7 21.0% 357 42% 24.6 1.22 29.9 5.3 29% Used Aug 2020. (Sept was 38.1, anomaly) Totals 706.1 854 100% 58.9 77.2 18.3 100% 0.325851 MG/AF 18.3 2,622 AF Unbilled of 21% based on 12 months as of June 2021 Commodity Allocation % Weighting Factor Allocation SF 32% 1 0.32 40% MF 12% 1 0.12 15% Com/City/Sch 14% 1 0.14 18% CDC 42% 0.5 0.21 26%
Totals 100% 0.79 100%
Number of
Customers
Weighting
Factor Allocation
SF 1,802 1 1,802 73.2%
MF 35 10 350 14.2%
Com/City/Sch 161 1 161 6.5%
CDC 2 75 150 6.1%
Totals 2,000 2,463 100%
Commodity Capacity
Commodity and Capacity Allocation Factors
Distribution
Billing & Customer Services
21 F. Modeling to Set Fixed and Volumetric Rates Meter Group 21/22 Rates # Accts $/mo $/yr $/yr Single-Family 5/8" $26.29 1,730 45,482 545,780 $39.44 100 $3,944.00 Single-Family 1" $65.73 75 4,930 59,157 604,937 12 Multi-Family (Units) $26.29 650 17,089 205,062 $47,328.00 MF Landscape 2" $210.33 5 1,052 12,620 MF Landscape 6" $1,314.55 3 3,944 47,324 MF Landscape 8" $2,103.27 1 2,103 25,239 290,245 Com 5/8' $26.29 20 526 6,310 Com 1" $65.73 91 5,981 71,777 Com 1.5" $131.45 18 2,366 28,393 Com 2" $210.33 34 7,151 85,815 Com 3" $420.65 2 841 10,096 Com 4" $657.27 6 3,944 47,323 Com 6" $1,314.55 1 1,315 15,775 265,488 Prison $3,154.92 2 6,310 75,718 75,718 Totals 2,638 103,032 $1,236,389 $1,236,389 35 -650 2,023 2,018 is the number of accounts billed in Nov 2021 in the amount of $103,723. Present Residential 1" Premium FYE 22 Water Fixed Monthly Calculation
Fixed
Monthly
Billed
Volumes
(TG)
Current
Rate
($/TG)
Current
Vol $
Current
Total
Resultant
Volumetric
Revenue
Combined
Total
Combined
Percent
Increase
%
Fixed
Single Family 604,937 225,900 2.70 $610,051 $1,215,000 6.50% 644,258 22.1% 3.30 $745,470 $1,389,728 14% 46% Multi Family 290,245 84,800 2.70 $229,005 519,000 -31.50% 198,818 22.1% 3.30 279,840 478,658 -8% 42% Com/Sch/City/Well 265,488 100,700 2.70 $271,944 537,000 0.00% 265,488 22.1% 3.30 332,310 597,798 11% 44% Avenal State Prison 75,718 294,700 2.70 $795,848 872,000 340% 333,160 22.1% 3.30 972,510 1,305,670 50% 26% Total $1,236,389 706,100 $3,143,000 $1,441,724 $2,330,130 $3,771,854 Increased
Volumetric Rate
Increased Fixed
Monthly
Determination of Fixed Monthly and Volumetric Rates Consistent with Cost of Service Model FY22 Projected Fixed and Volume Revenue Increases
22 G. Present and Proposed Water Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 Effective 7/1/21 Percent Change New Rate 8% 8% 8% 8% Volumetric Rates All metered water ($/HCF) $2.02 22% $2.47 $2.67 $2.88 $3.11 $3.36 All metered water ($/TG) $2.70 22% $3.30 $3.57 $3.85 $4.16 $4.49 Fixed Monthly Charges ($/Mo) Single-Family Dwellings: 5/8" Meter $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 1" Meter $65.73 reset $28.00 $30.24 $32.66 $35.27 $38.09 Multi-family Per Living Unit $26.29 reset $18.00 $19.44 $21.00 $22.68 $24.49 Avenal State Prison $6,309.84 reset $27,763.00 $29,984.04 $32,382.76 $34,973.38 $37,771.25 All Other Customers: 5/8" Meter $26.29 6.5% $28.00 $30.24 $32.66 $35.27 $38.09 1" Meter $65.73 0% $65.73 $70.99 $76.67 $82.80 $89.42
1.5" Meter $131.45 0% $131.45 $141.97 $153.33 $165.60 $178.85 2" Meter $210.33 0% $210.33 $227.16 $245.33 $264.96 $286.16 3" Meter $420.65 0% $421.00 $455.00 $491.00 $530.00 $572.00 4" Meter $657.27 0% $657.00 $710.00 $767.00 $828.00 $894.00 6" Meter $1,314.55 0% $1,315.00 $1,420.00 $1,534.00 $1,657.00 $1,790.00 8" Meter $2,103.27 0% $2,103.00 $2,271.00 $2,453.00 $2,649.00 $2,861.00 Effective 7/1/2022
Proposed Rates
City of Avenal Water Rates and Charges
Current
Rates
23 H. Sewer Revenue, Expense, and Fund Balance Table (Historical and Projected) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 2019 2020 2021 2022 2023 2024 2025 2026 2027 Audited Unaudited Unaudited Budget Projected Projected Projected Projected Projected Increases: 3% 3% 3% 3% 3% Total Operating Revenue $1,628,286 $1,656,000 $1,671,000 $1,704,000 $1,755,000 $1,808,000 $1,862,000 $1,918,000 $1,976,000 Operation & Maintenance Expenses: Inflation Personnel 1,134,599 932,727 900,289 1,005,400 1,056,000 1,109,000 1,164,000 1,222,000 1,164,000 5% Operations 82,118 97,051 142,500 197,870 204,000 210,000 216,000 222,000 216,000 3% Electricity and Water 176,345 183,934 221,099 210,000 242,000 278,000 320,000 368,000 423,000 15% Planned Solar Offset (85% of Elec & Wtr) - - - - (206,000) (236,000) (272,000) (313,000) (360,000) Administration 333,792 357,721 400,337 444,520 458,000 472,000 486,000 501,000 516,000 3% Depreciation & Amortization 154,490 202,633 141,044 - - - - - - n/a Total Operating Expenses 1,881,344 1,774,066 1,805,269 1,857,790 1,754,000 1,833,000 1,914,000 2,000,000 1,959,000 Operating Income/(Loss) (253,058) (118,066) (134,269) (153,790) 1,000 (25,000) (52,000) (82,000) 17,000 Non-Operating: Connection Fees 23,362 4,810 20,158 10,000 10,001 10,002 10,003 10,004 10,005 Interest Income 8,295 7,387 2,858 1,000 1,001 1,002 1,003 1,004 1,005 Other and Penalties 8,430 7,066 468 1,000 1,001 1,002 1,003 1,004 1,005 Total Non-Operating 40,087 19,263 23,484 12,000 12,003 12,006 12,009 12,012 12,015 Change in Net Position (212,971) (98,803) (110,785) (141,790) 13,003 (12,994) (39,991) (69,988) 29,015 Add back depreciation 154,490 202,633 141,044 - - - - - - Net Gain (Loss) (58,481) 103,830 30,259 (141,790) 13,003 (12,994) (39,991) (69,988) 29,015 Project Funding With Available Cash $0 $0 $0 $0 $0 Ending Total Current Assets $3,036,127 $3,147,779 $3,135,287 $2,993,497 $3,006,500 $2,993,506 $2,953,515 $2,883,527 $2,912,542 TG/YR treated 445,560 445,512 445,512 445,512 445,512 Resultant Processing Cost $3.94 $4.11 $4.30 $4.49 $4.40 AVENAL SEWER ENTERPRISE FUND For the Fiscal Years Ending June 30, 24 I. Detailed Calculations for School Sewer Rates per Student Existing Calculation Current Sewer Current Rate Per Student Calculated Student Count Year 20-21 Count Adjusted Based on Old Rate Difference based on Updated Count Tamarack Elementary School $80.60 $0.20 403 428 $85.60 Avenal Elementary School $148.80 $0.20 744 690 $138.00 Reef - Sunset Middle School $109.80 $0.20 549 575 $115.00 Avenal High School $123.80 $0.20 619 745 $149.00 $463.00 2315 2438 $487.60 $24.60 New Calculation 7 months of Days Students Gal/D/Stud TG Monthly Discharge (Per mo during 9 Processing Cost ($/TG) Calculated Annual Cost for the 9 mos in session Months Cost/Mo New Rate Per Student Winter Minimum Metered Usage % of Winter Minimum Tamarack Elementary School 213 428 10 101.3 $3.94 $3,590.46 12 $299.20 $0.70 Avenal Elementary School 213 690 10 163.2 $3.94 $5,788.35 12 $482.36 $0.70 181.0 90% 3 mo avg is 181 TG Reef - Sunset Middle School 213 575 13 176.8 $3.94 $6,270.72 12 $522.56 $0.91 220.0 80% Avenal High School 213 745 15 264.4 $3.94 $9,374.61 12 $781.22 $1.05 349.0 76% 705.7 $2,085.34 Current Total $463.00
$1,622.34
350%
Crosscheck
Reef - Sunset Unified School District Sewer Cost Calculations Increase
25 J. Sewer Cost Model (Existing and Proposed Revenue by Customer Class) Existing Rates and Revenue
Customer Group Count Units Rate $/Mo $/Yr (Rounded)
Avenal State Prison 1 - $96,608.22 $96,608 $1,159,000
Commercial < 4 TG/Mo 60 - $50.18 $3,011 $36,000
Commercial > 4 TG/Mo 40 - $50.18 $2,007 $24,000
Schools 4 - - $463 $6,000
City - - - - -
Multi-Family 37 660 $15.47 $10,210 $123,000
Single-Family 1,915 - $15.47 $29,625 $356,000
Totals 2,057 $141,924 $1,704,000
Proposed Rates and Revenue
Proposed Residential Baseline Rate: $25.60
Customer Group Count Units Rate $/Mo $/Yr (Rounded)
Avenal State Prison 1 - $73,125.00 $73,125 $878,000
Schools 4 - $2,085.00 $2,085 $25,000
Commercial < 4 TG/Mo 60 - $25.60 $1,536 $18,000
Commercial > 4 TG/Mo 40 - $76.80 $3,072 $37,000
City 6 - $76.80 $461 $6,000
Multi-Family 37 660 $25.60 $16,896 $203,000
Single-Family 1,915 - $25.60 $49,024 $588,000
Totals 2,063 $146,199 $1,755,000
$51,000
3%
City of Avenal Sewer Rates and Revenue
Existing and Proposed
26 K. Present and Proposed Sewer Rates
7/1/2023 7/1/2024 7/1/2025 7/1/2026
Effective
7/1/2021
Percent
Change New Rate 3% 3% 3% 3%
Residential Customers
Fixed monthly charge for SingleFamily Residential and MultiFamily Residential for each unit $15.47 65% $25.60 $26.37 $27.16 $27.97 $28.81
Non-Residential Customers
Non-residential customers with
average annual water usage
less than four thousand gallons
per month (535 cubic feet)
$50.18 -49% $25.60 $26.37 $27.16 $27.97 $28.81
Non-residential customers with
average annual water usage
equal to or more than four
thousand gallons per month
(535 cubic feet)
$50.18 53% $76.80 $79.10 $81.47 $83.91 $86.43
Schools (per student)
Elementary Schools $0.20 250% $0.70 $0.72 $0.74 $0.76 $0.78 Middle School $0.20 355% $0.91 $0.94 $0.97 $1.00 $1.03
High School $0.20 425% $1.05 $1.08 $1.11 $1.14 $1.17
Avenal State Prison $96,608.22 -24% $73,125.00 $75,318.75 $77,578.31 $79,905.66 $82,302.83 Note: The City recommends the installation of separate landscape water meters when possible for commercial customers, exempt from the calculation of sewer charges. Customers may also submit written requests to the city manager for the lower sewer rate provided they can demonstrate water usage above 4,000 gallons per month average is being used for landscape purposes.
City of Avenal Sewer Rates and Charges
Current
Monthly
Rates Effective 7/1/2022
Proposed Monthly Rates
27 L. Proposition 218-Compliant Rate Increase Notice (Draft)
CITY OF AVENAL
NOTICE OF PUBLIC HEARING ON
PROPOSED INCREASES IN WATER AND SEWER RATES
To comply with Proposition 218 (California Constitution Article XIIID, Section 6), the City of Avenal gives the following notice.
Public Hearing: At 5:15 p.m. (or thereafter) on Thursday, June 23, 2022, at the Avenal Theater & Event Center, 233 E. Kings Street, Avenal, CA, the Avenal City Council will hold a public hearing on proposed increases in rates for water and sewer service, and to hear and consider objections and protests to the proposed increases described in this notice. Access to the meeting is also available by phone or internet, with specific connection information to be on the City Council Meeting agenda, made available on the City’s website (www.cityofavenal.com) to the public prior to the hearing.
Rate Study Report: A Rate Study Report by IGService, dated April 19, 2022, describing details of the water and sewer rate changes and the method used to calculate the rate changes has been prepared, and the contents submitted to the City Council.
The report is available at City Hall and can also be found on the City website.
Amount of Proposed Modified Rates: Existing and proposed rates are included in this Notice. For a typical home using 9,000 gallons per month, the monthly water cost will increase from approximately $51 to $58, and the sewer cost will increase from approximately $15 to $25. Combined, the increase for a typical home will be approximately $17 per month.
Reason for the Needed Increase in Water and Sewer Revenue: For water, the primary reason for the needed overall revenue increase is to cover increasing expenses to provide safe and reliable water to Avenal’s residents, and further to meet bond requirements. For sewer, the overall revenue increase is needed primarily to cover ongoing inflation. For both water and sewer, cost-of-service adjustments have been made for more fairness across customer classes. For example, some multi-family customers and newer single-family homes with one-inch meters may see a decrease in water costs. Details of the rate changes for both water and sewer can be found in the Report. Revenue from the modified rates and charges will not be more than the funds required for the City to provide adequate service. Specifically, the proposed rates do not exceed the proportional cost of providing each service.
Procedure for Hearing and Determining Majority Protest: At the time stated above in this Notice, the Council will hear and consider all objections and protests, if any, to the proposed increases and other matters described in the Report. The Council may continue the hearing from time to time. At the close of the hearing, if written protests against the proposed increases are presented and not withdrawn by a majority of the record owners of the parcels that would be subject to the increases, the City may not impose the increased water and sewer rates; instead, rates would continue at their existing, previously-approved amounts. If, at the close of the protest hearing, there is no majority protest as described above, the Council may approve the increases, as proposed, or as changed by the Council, to be effective July 1, 2022.
How to Submit a Protest. Protests may be submitted by the record owner of the parcel or a tenant of a parcel subject to the proposed rates, but only one protest per parcel will be counted. Written protests must contain a clear statement that it is a protest against the proposed charges and it must include the name of the owner or customer of record, a description of the parcel or parcels (Assessor’s Parcel Number or street address) and an original signature of the owner or customer of record. Written protests regarding the proposed rate changes may be mailed or personally delivered to: City of Avenal, City Clerk, 919 Skyline Blvd, Avenal, CA 93204. To be valid, a protest must be in writing and received by the City Clerk at or before the closing of the public hearing on June 23, 2022.
Preserving the Right to Challenge: Separate from the right to file a protest, any person who wants to preserve the opportunity to file a lawsuit challenging the proposed increases, if imposed, or other matters described in the Report, must state the specific grounds for the objection, and submit that objection in writing prior to or during the public hearing, or orally during the public hearing.
Any grounds not provided and received before the close of the public hearing on June 23, 2022, will be deemed waived and may not be raised in any subsequent lawsuit.
Additional Information: Please direct questions about the proposed rate proceeding to Angie Ortiz, City Clerk, at (559) 386-5782, or by email to [email protected].
.
28 7/1/2023 7/1/2024 7/1/2025 7/1/2026
Effective
7/1/2021
Percent
Change New Rate 3% 3% 3% 3%
Residential Customers
Fixed monthly charge for SingleFamily Residential and MultiFamily Residential for each unit $15.47 65% $25.60 $26.37 $27.16 $27.97 $28.81
Non-Residential Customers
Non-residential customers with
average annual water usage less
than four thousand gallons per
month (535 cubic feet)
$50.18 -49% $25.60 $26.37 $27.16 $27.97 $28.81
Non-residential customers with
average annual water usage equal
to or more than four thousand
gallons per month (535 cubic feet)
$50.18 53% $76.80 $79.10 $81.47 $83.91 $86.43
Schools (per student)
Elementary Schools $0.20 250% $0.70 $0.72 $0.74 $0.76 $0.78 Middle School $0.20 355% $0.91 $0.94 $0.97 $1.00 $1.03
High School $0.20 425% $1.05 $1.08 $1.11 $1.14 $1.17
Avenal State Prison $96,608.22 -24% $73,125.00 $75,318.75 $77,578.31 $79,905.66 $82,302.83 Note: The City recommends the installation of separate landscape water meters exempt from the calculation of sewer charges for commercial customers. Customers may also submit written requests to the city manager for the lower sewer rate provided they can demonstrate water usage above 4,000 gallons per month average is being used for landscape purposes.
City of Avenal Sewer Rates and Charges
Current
Monthly
Rates Effective 7/1/2022
Proposed Monthly Rates
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 9. A
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: June 23, 2022
RE: Consider Extending Local Emergency Declaration (COVID-19) INFORMATION:
On March 24, 2020, the Avenal City Council adopted Resolution No. 2020-14 declaring a Local Emergency due to the existence or threatened existence of a local emergency: COVID 19 pandemic. Although case numbers have dropped to the single digits in Avenal, not all restrictions have been lifted, and the finding below is still required to be made to allow Councilmembers to attend meetings virtually.
The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists.
On October 28, 2021, the Avenal City Council adopted Resolution No. 2021-48 to satisfy AB 361 in order to continue Teleconferenced Meetings. AB 361 provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote every 30 days to continue using the bill’s exemption to the Brown Act teleconferencing rules
• The legislative body has reconsidered the circumstances of the emergency; and • Either of the following circumstances exist: The state of emergency continues to directly impact the ability of members to meet safely in person, or State or local officials continue to impose or recommend social distancing measures.
At this time, staff is recommending the City Council consider the following action by motion:
Approve and support the ongoing local emergency Resolution, and specifically, move to renew the emergency Resolution by sixty (60) days, unless a Councilmember or member of the public request that the Council convene to consider the ongoing emergency Resolution, at which time a special meeting would be scheduled.
Additionally, that the Council find that a state of emergency continues to directly impact the ability of members to meet safely in person, and that State and local officials continue to impose or recommend social distancing measures.
RECOMMENDATION:
Discussion/Action.
FISCAL IMPACT:
None.
June 23, 2022 Pg. 34
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 9. B
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: June 23, 2022
RE: Consider Extending Local Emergency Declaration (Water), and Amending Tier III Water Conservation Rules
INFORMATION:
On May 27, 2021, the Avenal City Council adopted Resolution No. 2021-23 declaring a Local Emergency due to the existence or threatened existence of a local emergency: Severe Water Shortage.
The declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists.
As of May 18, 2022, USBR has conditionally allocated 2,000 acre feet of water to the City of Avenal as Public Health & Safety use. On average in the last few years, the City has required 2,300 acre feet of water under Tier III drought emergency conditions. As the City continues growing and new houses being build, 2,000 acre feet of water may not be enough and additional water may be need. Code Enforcement has prepared a memo requesting changes to Tier III water conservation rules to help increase compliance.
By continuing the local emergency due to drought conditions, this action helps to show the Bureau that the City takes the drought emergency seriously and helps them accommodate the necessary Public Health & Safety water needs to the City.
Staff is recommending the City Council consider the following action by motion:
Approve and support the ongoing local emergency Resolution, and specifically, move to renew the emergency Resolution by sixty (60) days, unless a Councilmember or member of the public request that the Council convene to consider the ongoing emergency Resolution, at which time a special meeting would be scheduled.
RECOMMENDATION:
Discussion/Action.
FISCAL IMPACT:
June 23, 2022 Pg. 35
None.
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
TO: The Honorable Mayor and City Council
FROM: Lupe Chavez, Senior Code Enforcement/Water Conservation Officer DATE: June 23, 2022
RE: Amending Watering Days
INFORMATION:
As we are all aware of our water allotment for the City of Avenal, Code Enforcement would like to propose for consideration changes to our water schedule and fine fee schedule. Code Enforcement has been flexing hours, and, in our patrol, we have noticed still some residents wasting water. Most by washing their vehicles and water run-off from lawn watering. We have been doing verbal warning and some written. As we get to our hotter summer months, I know the increase will be there. We at Code Enforcement are getting ready to flex more early mornings and late evenings along with split shifts.
At this time, we would like to propose for consideration a two-day watering schedule – the same two (2) days for all residents. Example: Tuesdays and Saturdays. The reason for a Saturday is most residents that wash their vehicles that are on the odd side of the street say they are off on Saturdays and work on Fridays, so they have no chance to wash their vehicles. Changing to the same 2 days will also eliminate confusion on what watering days are for that side of the street.
We also would like for you to request that the Council consider a fee increase per citation that’s given for water valuations. Currently we are at $50, $100, and $150. What we would like for you to consider is increased to $100, $150, and $200. These fines can be only for the emergency drought and should be removed after the drought is over.
As we enter the summer months we would like to revert back to zero warnings for violations.
Code Enforcement will continue with a two-week education with more notices and flyers to residents as a form as last warning for all.
We understand that increasing the fines might seem high but its all-in hopes to stop water waste in our city and to help us meet our reduction the state and USBR is asking for. As always, we appreciate any ideas or feedback to better serve our community and its residents.
RECOMMENDATION:
Discussion/Direction.
1. Review proposal for Amended Tier III Water Conservation Measures and adopt Resolution 2022- ___ adopting the amended water conservation rules.
June 23, 2022 Pg. 37
1 of 2
BEFORE THE CITY COUNCIL OF THE
CITY OF AVENAL
IN THE MATTER OF:
A Resolution of The City Council of The City
of Avenal Adopting Amended Emergency Tier
Ill Water Conservation Measures Due to OnGoing Water Shortage.
RESOLUTION 2022-___
WHEREAS, due to water shortage, the Avenal City Council declared a Local Emergency on November 5, 2014 which has been reviewed and enacted; and WHEREAS, Tier III Water Conservation Measures have been in effect since May 27, 2021; and
WHEREAS, although there has been a decrease in water consumption, additional water conservation is needed at this time; and
WHEREAS, Tier III Water Conservation Measures exists in order to assist in decreasing potable water consumption until a water emergency no longer exists; and WHEREAS, the reduction of water and/or an inadequate water allocation is beyond the control of the City and its limited resources; and
WHEREAS, Title 6, Article 3, Section 6-4.28 of the Avenal Municipal Codes authorizes the City Council to adopt, by Resolution, and implement additional measures determined to be necessary to ensure an adequate supply of water for the City, and ensure the health and safety of the Citizens of the City; and
WHEREAS, it is in the best interest of the City and the entire Community that Amended Tier Ill Water Conservation Measures be implemented immediately.
UPON MOTION OF COUNCIL MEMBER , SECONDED BY
COUNCIL MEMBER , THE FOLLOWING WAS PASSED, APPROVED,
AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL SPECIAL MEETING HELD ON June ___, 2022, BY THE FOLLOWING VOTE:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
June 23, 2022 Pg. 38
2 of 2
Alvaro Preciado, Mayor
CITY OF AVENAL
MARIA A. ORTIZ, City Clerk
CITY OF AVENAL
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:
1. Found the foregoing recitals to be true, correct and incorporated herein;
2. That the City Council of the City of Avenal does hereby adopt Amended Emergency Tier III Water Conservation Measures (Exhibit A) consistent with Title 6, Article 3, Section 6-
4.28 of the Avenal Municipal Code.
* * * * * * * * * * * * * * * * * *
June 23, 2022 Pg. 39
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10.
B
TO: The Honorable Mayor and City Council
FROM: Antony V. López, City Manager
DATE: June 23, 2022
RE: Consider Enacting a One Cent General Sales Tax & Imposing a Business Tax on Commercial Cannabis Businesses
BACKGROUND:
As a continuation to the discussion at the June 9, 2022 City Council meeting, Staff has prepared the following documents to begin the process of sending a general sales tax, and a cannabis business tax to the ballot on November 8, 2022.
INFORMATION:
General Sales Tax:
Per the previous Council meeting, the Council signaled support to a general sales tax that that would generate additional income for the City to use on a wide variety of needs and services.
After discussing with neighboring cities and the County of Kings, the City has confirmed that the sales tax revenue Avenal receives is in fact one full percent (1%) of the 7.25% sales tax rate current imposed in the County – or one penny. Below is a breakdown of how California sales tax work:
Breakdown of California Sales Tax
Rate (%) Jurisdiction Purpose of Tax
3.9375 State State’s General Fund
0.50 State Local Public Safety Fund to support local criminal justice activities
0.50 State Local Revenue Fund for local health and social services programs
1.0625 State Local Revenue Fund 2011
1.25 Local 0.25% for county transportation funds
1% for city or county operational funds
June 23, 2022 Pg. 40
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10.
B
Current Sales Tax Revenues: In the previous three fiscal years, the City has received the following sales tax revenues:
FY 2019-2020 FY 2020-2021 FY 2021-2022*
309,516.72 278,305.22 343,677.54
*awaiting one final payment
If current spending habits in Avenal continue, FY 2021-2022 should end at an estimated $368,000.00. Averaging the last three fiscal years, one can estimate of revenues continuing with at least $320,000.00, if not more, so long as the economy does not take a downturn. Adding to these revenues will new families moving to Avenal as well as the opening of new businesses, such as Dollar General and O'Reilly Auto Parts, which are sure to be healthy additions. A safe estimate for next fiscal year’s sales tax revenue by Staff is currently at $350,000 - $450,000.00, given these trends.
General Sales Tax Proposal: Any new sales tax mut be in increments of 1/8 of a penny, which a full penny translates to one percent (1%) in additional sales tax. Staff proposes that the Council adopt an ordinance of up to one penny or one percent of additional sales tax, which would effectively double the current sales tax revenue for the City of Avenal.
Next Steps: With Council’s continued support, the City Attorney has prepared both the ordinance and resolution to will enact the sales tax – if and when the voters approve it in November. A general tax requires approval by a simple majority of voters (a simple majority is 50 percent of voters plus one additional voter.) The text would appear as such on the ballot:
Avenal Essential City Services Funding
To preserve the safety and character of Avenal, and maintain essential general City services for Avenal residents
including police, 911 emergency response, fire protection, disaster preparedness, recreational programs and facilities, park maintenance and improvements, street maintenance
and repairs and other essential services, shall Ordinance No. 2022-04, imposing a 1-cent general sales and use tax, be adopted? Estimated revenues between $400,000.00 and
$500,000.00 annually, indefinitely.
Yes
No
If approved by the voters, the Council can place controls on the taxes, such as suspending it if not needed. Council can agree by resolution, that any tax will be phased in, for example over a year or two years. Ease the burden, and also allow the tax to be suspended all together if enough revenues are coming in and not needed. That can ease taxpayer anxiety, that the tax is not forever, and can be shut on and off as needed. Likewise, whatever amount of tax is determined, would be the threshold of either utilizing the full extent, or even half or less as determined by the Council.
June 23, 2022 Pg. 41
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10.
B
Cannabis Business Tax:
The Cannabis Business Tax is also a general sales tax but levied specifically on businesses that work with cannabis. The proposed ordinance and resolution are a first step towards collecting taxes on the sale of cannabis and cannabis products in Avenal, but does not in itself allow the sale or further recreational use, as those are steps and ordinances that the Planning Commission will need to review in the zoning ordinance and other land use policies.
Cannabis Business Tax Potential Revenues and Proposed Tax: At this time, it is difficult to exactly determine how much additional revenues cannabis could bring to the City of Avenal, but looking at what neighboring cities have projected when they began allowing cannabis dispensaries, many are receiving revenues over one-million dollars, such as Lemoore and Farmersville. The closest comparison Staff felt comfortable utilizing is Coalinga, which in FY 2021-2022 projected $1.2 million in revenues, but in years prior from 2018-2020 had averaged between $450,000 – $800,000. Should a market open in Avenal, it may take a while for the industry to reach the million-dollar levels, but if even half of that market were occur in Avenal, the funds would be a generous boost to the General Fund.
Next Steps. With Council’s continued support, the City Attorney has prepared both the ordinance and resolution to will enact the cannabis business sales tax – if and when the voters approve it in November. As a general tax, it requires approval by a simple majority of voters (a simple majority is 50 percent of voters plus one additional voter.) The text would appear as such on the ballot:
Shall Ordinance 2022-05 be adopted authorizing a
commercial cannabis business tax in the City of Avenal on commercial cannabis businesses up to $25 per square foot (annually adjusted by CPI) or at 15% of gross receipts, to maintain essential public safety and general City services including, but not limited to, police, drug addiction and gang prevention, park maintenance, street maintenance for
Avenal residents, generating undetermined revenue,
potentially up to $400,000 to $600,000 annually until
repealed?
Yes
No
Timeline:
The deadline to approve a tax ordinance will be by the July 14, 2022 regular City Council meeting. Afterwards, Staff will need to publish a synopsis of the ballot measure and ordinance, with all documentation submitted to the Kings County Elections Office by August 9, 2022.
August 11, 2022, will be the legal deadline for the Council to approve Order of Election, followed by request for alphabetical letter measure designation, and arguments. The election date is November 11, 2022.
June 23, 2022 Pg. 42
City of Avenal
919 Skyline Blvd.
Avenal, CA 93204
Phone: (559) 386-5766
Fax: (559) 386-0629
AGENDA ITEM NO. 10.
B
RECOMMENDATION:
Discussion/Direction.
See the attached ordinances and resolutions for approval.
1. Adopt Ordinance 2022-04, and Resolution 2022-39, Enacting a One-Cent General Sales Tax, and direct Staff to take the necessary next steps per the ordinance and resolution.
2. Adopt Ordinance 2022-05, and Resolution 2022-40, Enacting a One Cent General Sales Tax, and direct Staff to take the necessary next steps per the ordinance and resolution.
June 23, 2022 Pg. 43
ORDINANCE NO. _2022-04__
AN ORDINANCE OF THE CITY OF AVENAL ENACTING A ONE CENT
GENERAL SALES TAX.
THE PEOPLE of the City of Avenal do ordain as follows:
Section 1. PURPOSE. The provisions of this ordinance are necessary for the safety of the public and for the preservation of essential city services for the residents of the City of Avenal (“City”). By adopting Resolution No. 2022-___ by a vote of at least two-thirds vote of all members of the City Council, the City Council authorized placing this ordinance before the voters of the City of Avenal at an election to be held on November 8, 2022.
Section 2. CODE ADOPTION. Chapter 5B of Title 3 of the Municipal Code of the City of Avenal is added to read in its entirety as follows:
Chapter 5B
TRANSACTIONS AND USE TAX
5B-010: SHORT TITLE.
This chapter shall be known as the City of Avenal Transactions and Use Tax Ordinance. The City of Avenal hereinafter shall be called “city.” This chapter shall be applicable within the incorporated territory of the city. 5B-020: OPERATIVE DATE.
“Operative date” refers to the first day of the first calendar quarter commencing more than one hundred ten days after the adoption of this chapter.
5B-030: PURPOSE.
This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A.To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with section 7251) of Division 2 of the Revenue and Taxation Code and section 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
June 23, 2022 Pg. 44
B. To adopt a retail transactions and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part
1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance which imposes a tax and provides a measure therefore which can be administered and collected by the California Department of Tax and Fee Administration in a manner which adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in
administering and collecting California state sales and use taxes.
D. To adopt a retail transactions and use tax ordinance which can be administered in a manner which will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter.
5B-040: CONTRACT FOR ADMINISTRATION.
Prior to the operative date, the city shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided that if the city shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
5B-050: TRANSACTIONS TAX RATE.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.
5B-060: PLACE OF SALE.
June 23, 2022 Pg. 45
For the purposes of this chapter, all retail sales shall be deemed consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-ofstate destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations as may be prescribed and adopted from time to time by the California Department of Tax and Fee Administration.
5B-070: USE TAX RATE.
An excise tax is hereby imposed upon the storage, use or other consumption within the city of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption within said territory at the rate of one percent (1%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
5B-080: ADOPTION OF STATE LAW PROVISIONS.
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein.
5B-090: LIMITATIONS UPON ADOPTION OF STATE LAW
AND COLLECTION OF USE TAXES.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this city shall be substituted therefore.
However, the substitution shall not be made in any of the following:
1. Insofar as the word “state” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State June 23, 2022 Pg. 46
Department of Tax and Fee Administration, State Treasury or the Constitution of the State of California;
2. Whenever the result of said substitution would require action to be taken by or against this city or any agency, officer or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter;
3. As to those sections referring to the exterior boundaries of the State of California;
4. As to those sections, including but not necessarily limited to, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible
personal property which would not otherwise be exempt
from this tax while such sales, storage, use or other
consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and
Taxation Code; or
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which
would not be subject to tax by the state under the said provision of that code; and
5. Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828.
B. The word “city” shall not be substituted for the word “state” in the phrase “retailer engaged in business in this State” in section 6203 and in the definition of that phrase in section 6203.
5B-100: PERMIT NOT REQUIRED.
If a seller’s permit has been issued to a retailer under section 6067 of the Revenue and Taxation Code, an additional seller’s permit shall not be required by this chapter.
5B-110: EXEMPTIONS AND EXCLUSIONS.
June 23, 2022 Pg. 47
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. The amount sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the BradleyBurns Uniform Local Sales and Use Tax Law, or the amount of any state-administered transactions or use tax;
2. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this state, the United States or any foreign government;
3. Sales of property to be used outside the city which is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the city shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with section 9840) of the Vehicle Code by registration to an out-of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address;
June 23, 2022 Pg. 48
4. Sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter; and
5. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter.
6. For the purposes of subsections 4 and 5 of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this city of tangible personal property:
1. The amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 commencing with section 7200) or the amount of any stateadministered transactions or use tax;
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government. This exemption is in addition to the exemptions provided by sections 6366 and 6366.1 of the Revenue and Taxation Code;
3. If the purchaser became obligated to purchase the property for a fixed price by a contract entered into prior to the operative date of this chapter;
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for June 23, 2022 Pg. 49
which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter;
5. For the purposes of subsections 3 and 4 of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised;
6. Except as provided in subsection 7, a retailer engaged in business within the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including but not limited to soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer; and
7. A “retailer engaged in business within the city” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel or aircraft at an address within the city.
D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
5B-120: AMENDMENTS.
A. This Chapter may be amended by ordinance of the Avenal City Council without a vote of the People except that, as required by Article XIIIC of the California Constitution, voter approval is required for any June 23, 2022 Pg. 50
amendment which would increase the rate of any tax levied pursuant to this Chapter above the maximum rates established by this Chapter.
B. All amendments subsequent to November 8, 2022 to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part
1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter. Said amendments shall not require voter approval.
C. The following amendments to this chapter must be approved by the voters of the city: increasing the tax rate or revising the methodology for calculating the tax such that a tax increase would result; imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of the preceding paragraph); or extending the effective date of this Chapter. Otherwise, the city council may amend this chapter without submitting the amendment to the voters for approval, provided that such ordinance amendment does not increase or decrease the tax rate approved by the voters. The People of the City of Avenal affirm that each and all of the following actions shall not constitute an increase of the rate of a tax:
(1) The restoration of the rate of the tax to a rate which is no higher than the maximum allowed by this Chapter, if the City Council has acted to suspend or reduce the rate of the tax; (2) An action which interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the text of this Chapter; (3) The collection of the tax imposed by this Chapter, even if the City had, for some period of time, failed to collect the tax; (4) The establishment of a class of Persons which are exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Chapter); or
(5) The City Council’s adoption of a resolution, as authorized by Section 5B-140, to raise the tax rate, provided that the rate may not be increased to a rate which is higher than the maximum established in this Chapter.
5B-130: ENJOINING COLLECTION FORBIDDEN.
June 23, 2022 Pg. 51
No injunction, writ of mandate or prohibition, or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the city, or against any officer of the state or the city, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
5B-140: SUSPENSION OF COLLECTION.
The City Council shall have authority to temporarily suspend collection of all or a portion of the tax imposed by this chapter by resolution unanimously approved by all members of the entire City Council, subject to the restrictions in the City agreement with the California Department of Tax and Fee Administration. The City Council may at any time also repeal or supersede such resolution. However, the authority to levy the tax imposed by this chapter shall not expire or otherwise terminate, unless terminated by a duly enacted ordinance which is approved at a regular meeting of, and by unanimous vote of all five (5) of the seats on, the City Council.
Section 3. CEQA REVIEW. The City Council hereby finds that this ordinance is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15060(c)(2), 15061(b)(3) and 15378(b)(2) and (4). The City Manager is hereby directed to ensure that a Notice of Exemption is filed pursuant to CEQA Guidelines section 15062 [14 C.C.R. § 15062].
Section 4. NO LIABILITY. The provisions of this ordinance shall not in any way be construed as imposing any duty of care, liability or responsibility for damage to person or property upon the City of Avenal, or any official, employee or agent thereof.
Section 5. PENDING ACTIONS. Nothing in this ordinance or in the codes hereby adopted shall be construed to affect any suit or proceeding pending or impending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing, under any act or ordinance or code repealed by this ordinance, nor shall any just or legal right or remedy of any character be lost, impaired or affected by this ordinance.
Section 6. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or June 23, 2022 Pg. 52
circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council of the City of Avenal hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.
Section 7. CONSTRUCTION. The City Council intends this ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this ordinance shall be construed in light of that intent. To the extent the provisions of the Avenal Municipal Code as amended by this ordinance, if any, are substantially the same as provisions in the Avenal Municipal Code existing prior to the effectiveness of this ordinance, then those amended provisions shall be construed as continuations of the earlier provisions and not as new enactments.
Section 7. EFFECTIVE DATE. Pursuant to Elections Code § 9217, this ordinance shall be deemed adopted on the date when the final vote is declared by the City Council and this ordinance shall go into effect ten (10) days after that date, contingent upon approval by a majority of the voters voting on the measure in the November 8, 2022 election. However, pursuant to Revenue and Taxation Code § 7265, the authority to levy the general sales tax in the foregoing ordinance shall take effect first day of the first calendar quarter commencing more than one hundred ten (110) days after the adoption of this ordinance, or at such other time authorized within Section 2.
THE FOREGOING ORDINANCE was approved by the City Council of the City of Avenal, State of California, on June 23 , 2022 at a regular meeting of said Council duly and regularly convened on said day by the following vote:
June 23, 2022 Pg. 53
AYES:
NOES:
ABSTAIN:
ABSENT:
ALVARO PRECIADO, Mayor
ATTEST:
Maria A. Ortiz, City Clerk
CLERKS CERTIFICATE
City of Avenal}
County of Kings } ss.
State of California }
I, Maria A. Ortiz, City Clerk of the City of Avenal hereby certify that the foregoing is a full, true and correct copy of an ordinance approved by the City Council of the City of Avenal at a meeting held on the ___ day of June, 2022, by the vote as set forth therein.
DATED: June ____, 2022
ATTEST:
___________________________________
Maria A. Ortiz, City Clerk
June 23, 2022 Pg. 54
BEFORE THE CITY COUNCIL OF THE
CITY OF AVENAL
IN THE MATTER OF:
Resolution Calling City Election for Voter
Approval of General Transactions and Use
of One Percent; and Specifications of the
Election Order.
RESOLUTION 2022-
WHEREAS, approval of a local transactions and use tax ensures that the City of Avenal (“City”) has more local funding for vital City services which cannot be taken by the State, ensuring our tax dollars are spent locally for the benefit of residents of Avenal; WHEREAS, when a City seeks voter approval of a new local transactions and use tax, Article XIIIC § 2(b) of the California Constitution requires the election to be consolidated with the general municipal election for City council members, except in cases in which a City Council has unanimously declared that there is a fiscal emergency; WHEREAS, in recent years the City has experienced insufficient growth in sales tax revenues and other State revenues while the scope and cost of providing essential City services has increased along with inflation;
WHEREAS, projected deficits in the General Fund and other operating funds threatens a reduction in staffing and services in all departments including public safety personnel and other essential City services potentially placing Avenal residents at risk in emergency situations;
WHEREAS, the City’s expenditure trends, and reduction of federal funding of public safety positions, point to a potential deficit in the General Fund and/or other operating funds in the upcoming fiscal years which will limit the City’s ability to meet public safety standards, fund recreational programs and facilities, maintain and improve parks, repair and improve streets, and provide other general and essential services; WHEREAS, the City Council received information during the budget review process for the last couple of years which demonstrated that the City will be operating at a significant General Fund and/or other operating fund deficits commencing in fiscal year 2022 and said deficit is estimated to continue in current and subsequent fiscal years even with significant cuts to expenditures;
WHEREAS, the City Council desires revenue measures be placed on the ballot of the November 8, 2022 to seek voter approval of a proposed general transactions and use tax (“general sales tax”) as authorized by Revenue and Taxation Code § 7285.9; June 23, 2022 Pg. 55
WHEREAS, the statutory deadline to authorize submittal of said general sales tax measure to the County of Kings’s elections office is scheduled to expire on or about August 11, 2022 for the November 8, 2022 regular election date and the County’s administrative deadline for submittal of relevant documentation is August 11, 2022;
WHEREAS, the new general sales tax would be imposed upon retail transactions involving sale and/or use of personal property. The tax rate would be one percent (1%, or one penny per dollar) of the sales price of the property. The general sales tax revenue would be collected by the California Department of Tax and Fee Administration as with other sales taxes. Collection of all or any portion of the tax could be temporarily suspended by a unanimous vote of the City Council. The tax would require approval of at least a majority of voters voting on the measure and approval of this resolution by at least two-thirds vote of all members of the City Council;
WHEREAS, based upon all of the information presented to the City Council as of the date of this resolution, both written and oral, including the staff reports, minutes and other relevant materials, the general sales tax does not constitute a project under CEQA Guidelines 15060(c)(2), 15061(b)(3) and 15378(b)(2) and (4) and therefore review under CEQA is not required; and
WHEREAS, on June _23, 2022, the City Council held a public meeting to consider placing a general sales tax ordinance before the voters of the City of Avenal at an election to be held on November 8, 2022.
UPON MOTION OF COUNCIL MEMBER , SECONDED BY
COUNCIL MEMBER , THE FOLLOWING WAS PASSED, APPROVED,
AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL MEETING HELD June 23, 2022, BY THE FOLLOWING VOTE:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
Maria A. Ortiz, City Clerk
June 23, 2022 Pg. 56
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:
FOUND the foregoing recitals to be true and ORDERED that an election be held within the City of Avenal on the 8th day of November, 2022, for the purpose of submitting to all voters within the City a ballot measure with the following specifications:
1. Pursuant to the California Constitution, Article XIIIC, § 2(b), Government Code § 53724 and Elections Code § 9222, the City Council of the City of Avenal hereby calls and orders an election at which it shall submit to the qualified voters of the City, a measure relating to the adoption of a transactions and use tax. This measure shall be designated by an alphabetical letter by the Kings County elections official or other qualified official, and the City Manager shall in writing request one or more alphabetical letter designations.
2. The ordinance imposing a general transactions and use tax (“general sales tax”) to be approved and adopted by the voters is set forth in EXHIBIT A attached hereto and incorporated by this reference. The City Council hereby approves said ordinance, the form thereof, and its submission to the voters of the City at an election to be held on November 8, 2022, as required by Revenue and Taxation Code § 7285.9, subject to the approval of a majority of the voters voting on the measure at the election called by the adoption of the instant resolution. The ordinance enacts a general sales tax at the rate of one percent (1%, or one penny per dollar) on the gross receipts of any retailer upon the sale of all tangible personal property sold at retail within the City and one percent (1%, or one penny per dollar) of the sales price of tangible personal property stored, used or otherwise consumed in the City.
3. In accordance with Elections Code § 12111 and Government Code § 6061, the City Clerk is hereby authorized and directed to cause notice of the measure to be published once in a newspaper of general circulation, printed, published and/or circulated in the City of Avenal and hereby designated for that purpose by the City Council of the City of Avenal. The City Clerk may enlist the assistance of the County of Kings elections office to prepare and publish the required notice.
4. Pursuant to the requirements of the laws of the State of California relating to cities within said State, the following proposed measure ballot label shall be added to the ballot for the November 8, 2022, election and thereby submitted to the voters of the City:
June 23, 2022 Pg. 57
Avenal Essential City Services Funding
To preserve the safety and character of Avenal, and
maintain essential general City services for Avenal
residents including police, 911 emergency response, fire protection, disaster preparedness, recreational programs and facilities, park maintenance and improvements, street maintenance and repairs and other essential services, shall Ordinance No. 2022-04, imposing a 1-cent general sales
and use tax, be adopted? Estimated revenues between
$400,000 and $500,000 annually, indefinitely.
Yes
No
5. The full text of the ballot label appearing in the preceding section shall be printed in the sample and final ballots but the full text of Ordinance No. 2022-04 shall not be printed in the sample and final ballots and voter information guide. In compliance with Elections Code § 9223, the City Clerk shall promptly print, certify and post in the Office of the City Clerk and on the City’s website, a copy of Ordinance No. 2022-04 and the ballot label appearing in the preceding section, and shall provide a copy of them to any City voter upon request and free of charge.
6. The official ballot to be used at said election shall conform to the laws of the State of California with relation thereto.
7. The City Council hereby requests and consents to the County of Kings elections official’s consolidation of this election with other elections, if any, which may be held in whole or in part of the territory of the City, as provided in Elections Code §§ 10400 et seq., on November 8, 2022, for the ease and convenience of the registered voters and to take advantage of any cost savings possible by such consolidation.
8. The City Clerk may enlist the assistance of the County of Kings elections official in regard to the said consolidated general municipal election, as the City Clerk deems reasonably necessary or convenient.
9. The City will reimburse the County of Kings for the actual cost incurred by the county elections official in conducting the municipal election upon receipt of an invoice stating the amount due as determined by the elections official in accordance with all applicable laws. The City Manager is authorized to sign an appropriate written agreement between the City and the County of Kings for that purpose, following review and approval as to form by the City Attorney.
10.The election shall be held and conducted as provided by law for holding municipal elections.
June 23, 2022 Pg. 58
11.The notice of the time and place of holding the election is given and the City Clerk is directed to give further or additional notice of the election in the time, form and manner as required by law. The City Clerk may enlist the assistance of the County of Kings elections office in regard to the same.
12.The City Clerk is hereby directed to submit to the City Attorney a certified copy of the measure pursuant to Elections Code § 9280. The City Attorney is hereby authorized and directed to prepare an impartial analysis of the ballot measure showing the effect of the measure on the existing law and operation of the measure, said analysis to be submitted by the City Attorney to the County of Kings elections office, or other appropriate office, for printing by the date set by the County of Kings elections official for the filing of arguments for and against the measure. The analysis shall not exceed five hundred (500) words in length and shall otherwise comply in all respects with the applicable provisions of the Elections Code.
13.In accordance with the provisions of the Elections Code §§ 9290 et seq., the Mayor or Mayor Pro Tempore or their designee from the City’s staff is authorized and directed to submit an argument in support of the measure and a response to any argument in opposition to the measure.
14.The City Clerk in conjunction with the County of Kings election official shall fix and determine a date for submission of all forms of arguments for or against said measure, including rebuttal arguments under Elections Code § 9285 which are hereby authorized for this and all future elections, and said date(s) shall be posted in the Office of the City Clerk.
15.The election on the measure set forth in sections 2 and 4 of this resolution shall be held and conducted, the votes canvassed and the returns made, and the results ascertained and determined as provided for herein. In all particulars not prescribed in this resolution, the election shall be held as prescribed in the Elections Code of the State of California, including but not limited to Elections Code § 10262(a) pursuant to Elections Code § 10101 to the extent applicable. The Board of Supervisors of the County of Kings or other appropriate county official is authorized to canvas the returns of that election with respect to the votes cast in the City of Avenal and certify the results to the City Council. At the next regular meeting of the City Council occurring after the returns of the election have been canvassed and the certification of the results to the City Council, the City Council shall cause to be entered in its minutes a statement of the results of the election.
16.The City Manager is hereby authorized and directed to expend the funds necessary and convenient to pay for the City’s cost of placing the measure on the election ballot.
June 23, 2022 Pg. 59
17.The City Clerk is hereby ordered to certify to the adoption of this resolution and to file copies hereof, so certified, with the Clerk of the Board of Supervisors of the County of Kings and with the elections official of the County of Kings, and to enter it into the book of original resolutions.
18.Authorized the Mayor, City Manager, City Clerk and the respective city and county election officials to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper and/or convenient and/or incidental thereto, including the signing of any updated version of this resolution which is reasonably necessary to conform to the requirements of the County of Kings and applicable laws.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Avenal held on the 23rd day of June, 2022, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED: __________________________
Alvaro Preciado, Mayor
ATTEST: ______________________________
Maria A. Ortiz, City Clerk
CLERKS CERTIFICATE
City of Avenal }
County of Kings } ss.
State of California }
I, _______________, City Clerk of the City of Avenal, hereby certify that this is a full, true and correct copy of Resolution No. ______ duly passed by the City Council of the City of Avenal at a regular meeting thereof held on the day of June 2022, by the vote as set forth therein.
DATED: _______________
ATTEST:
___________________________________
Maria A. Ortiz, City Clerk
June 23, 2022 Pg. 60
ORDINANCE NO. 2022-05
AN ORDINANCE OF THE CITY OF AVENAL IMPOSING A BUSINESS TAX ON
COMMERCIAL CANNABIS BUSINESSES
THE PEOPLE of the City of Avenal do ordain as follows:
By adopting Resolution No. 2022-___ by a vote of at least two-thirds vote of all members of the City Council, the City Council authorized placing this Ordinance before the voters of the City of Avenal at the November 8, 2022 general election.
Section 1. PURPOSE. The provisions of this Ordinance are adopted to achieve the following purposes:
A. To impose a tax on the privilege of conducting Commercial Cannabis Businesses within the City pursuant to the “California Control, Regulate and Tax Adult Use of Marijuana Initiative” approved by the voters in November 2016 election, or other enabling legislation, notwithstanding if state law uses the term “marijuana” or “Cannabis;” B. To impose a general tax on lawful Commercial Cannabis Businesses in accordance with the authority granted by California Government Code § 37100.5 to impose a business tax;
C. To specify the type of tax and rate of tax to be levied and the method of collection;
D. To comply with all requirements for imposition of a general tax, such tax to become operative only if submitted to the electorate and approved by a majority vote of the voters voting in an election on the issue; and
E. The provisions of this Ordinance are necessary for the safety of the public and for the preservation of essential City services for the residents of the City.
Section 2. CODE ADOPTION. Chapter 5C of Title 3 of the Municipal Code of the City of Avenal is added to read in its entirety as follows:
June 23, 2022 Pg. 61
Chapter 5C
COMMERCIAL CANNABIS BUSINESS TAX
5C-010: SHORT TITLE.
This chapter shall be known as the City of Avenal Cannabis Business Tax. The City of Avenal shall be referred to as “City” in this ordinance. This chapter shall be applicable within the incorporated territory of the City. 5C-020: OPERATIVE DATE.
“Operative Date” refers to the first day of the first calendar quarter commencing more than one hundred ten (110) days after the adoption of this chapter.
5C-030: DEFINITIONS.
A. “Business” shall include all activities engaged in or caused to be engaged in within the incorporated area of the City, including any Commercial or industrial enterprise, trade, profession, occupation, vocation, calling or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.
B. “Cannabis” means all parts of the plant Cannabis Sativa Linnaeus Cannabis Indica, or Cannabis Ruderalis or any other strain or varietal of the genus Cannabis which may exist or hereafter be discovered or developed that has psychoactive or medicinal properties, whether growing or not, including the seeds thereof. “Cannabis” also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. For purposes of this section, “Cannabis” does not mean “industrial hemp” as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code. Cannabis is classified as an agricultural product separately from other agricultural crops.
C. “Cannabis Business Tax,” “Business Tax,” “Cannabis Tax” or “Cannabis Industry Tax” means the tax due pursuant to this Chapter for engaging in Commercial Cannabis Businesses.
D. “Cannabis Cultivation Area” means the total aggregate area(s) of Cannabis Cultivation by a Cannabis business as measured around the outermost perimeter of each separate and discrete area of Cannabis Cultivation at the dripline of the canopy expected at maturity and includes, but is not limited to, the space between plants within the Cultivation area, the exterior dimensions of garden beds, garden plots, hoop houses, green houses, and each room or area where Cannabis plants are grown, excluding nonJune 23, 2022 Pg. 62
production areas, as determined by the Community Development Director or his or her designee.
E. ''Cannabis Nursery” means a Person who produces Cannabis clones, immature plants, and/or seeds for distribution, used specifically for the planting, propagation, and Cultivation of Cannabis. In addition, and without limiting the foregoing, “nursery” includes “nursery” as defined in California Business and Professions Code § 19300.5 and any successor statute, as may be adopted or amended from time to time.
F. “Cannabis Product” means any product containing Cannabis, including, but not limited to, flowers, buds, oils, tinctures, concentrates, extractions, edibles and those products described in Health and Safety Code § 11018.1.
G. “Cannabis Production” means the processes associated with the processing, extraction, manufacturing, testing, distribution and transportation of medical and non-medical cannabis products.
H. “Canopy” means all areas occupied by any portion of a cannabis plant, inclusive of all vertical plans, whether the areas are contiguous or noncontiguous. The plant canopy need not be contained to a single parcel of land in determining the total square footage that will be subject to the tax under this Chapter. If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation.
I. “City” means the City of Avenal.
J. “City Council” means the City Council of the City of Avenal.
K. “City Permit” refers to any registration or other written authorization duly issued by the City to a Person to allow that Person to operate or engage in a Commercial Cannabis Business in accordance with City requirements.
L. “Collector” means the city clerk, or other city official charged by the city manager with the administration of the provisions of this chapter.
M. “Commercial Cannabis Business” means any commercial business activity relating to cannabis, including but not limited to cultivating, transporting, distributing, manufacturing, compounding, converting processing, preparing, storing, packaging, delivering, and selling (wholesale June 23, 2022 Pg. 63
and/or retail sales) of cannabis and any ancillary products and accessories in the City, whether or not carried on for gain or profit.
N. “Commercial Cannabis Cultivation” means Cultivation conducted by, for, or as part of a Commercial Cannabis Business.
O. “County” shall mean Kings County, within sphere of influence of the City.
P. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading or trimming of Cannabis.
Q. “Delivery” means the commercial transfer of cannabis or cannabis products from a Commercial Cannabis Business.
R. “Distributor” or “distribution” or “distribution facility” means a person involved in the procurement, sale, and/or transport of cannabis and cannabis products between two or more cannabis businesses.
S. “Employee” means each and every Person engaged in the operation or conduct of any business, whether as owner, member of the owner’s family, partner, associate, agent, manager, or solicitor, and each and every other Person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.
T. “Engaged in business” means the commencing, conducting, operating, managing, or carrying on of a Commercial Cannabis Business and the exercise of corporate or franchise powers, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise.
U. “Fiscal Year” means July 1 through 30 of the following calendar year.
V. “Gross Receipts” means the total amount or compensation received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, or whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends and gains realized from trading in stocks or bonds, however designated. Included in “Gross Receipts” shall be all receipts, cash, credits and property of any kind or nature, without any deduction there from an account of the cost of the property sold, the cost of materials used, labor or June 23, 2022 Pg. 64
service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:
1. Cash discounts where allowed and taken on sales;
2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as gross receipts;
3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
4. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
5. Receipts from investments where the holder of the investment received only interest and/or dividends, royalties, annuities and gains from the sale or exchange of stock or securities solely for a Person’s own account, not derived in the ordinary course of a business;
6. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer’s business;
7. Cash value of sales, trades or transactions between departments or units of the sale business;
8. Wherever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;
9. Transactions between a partnership and its partners;
10.Receipts from services or sales in transactions between affiliated corporations. An affiliated corporation is a corporation:
a. The voting and non-voting stock of which is owned at least eighty percent (80%) of such other corporation
with which such transaction is had; or
b. Which owns at least eighty percent (80%) of the voting and non-voting stock of such other corporation; or
June 23, 2022 Pg. 65
c. At least eighty percent (80%) of the voting and nonvoting stock of which is owned by a common parent corporation which also has such ownership of the
corporation with which such transaction is had.
11.Transactions between a limited liability company and its member(s), provided the limited liability company has elected to file as a Subchapter K entity under the Internal Revenue Code and that such transaction(s) shall be treated the same as between a partnership and its partner(s) as specified in Subsection 9 above;
12.Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar ($1.00);
13.Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the Finance Department with the name and addresses of the others and amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.
W. “Indoor” means indoor Cultivation of cannabis using exclusively artificial lighting.
X. “Manufacturer” means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
Y. “Mixed-Light” means Cultivation of cannabis using any combination of natural and supplemental artificial lighting. Greenhouses, hoop houses, hot houses and similar structures or light deprivation systems are included in this category.
Z. “Outdoor” means Cultivation of cannabis using no artificial lighting conducted in the ground or in containers outdoors with no covering. Outdoor Cultivation does not include greenhouses, hoops houses, hot houses or similar structures.
June 23, 2022 Pg. 66
AA. “Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, syndicate tribe or any other group or combination acting as a unit, and includes the plural as well as the singular member.
BB. “Sale” means and includes any sale, exchange, or barter.
CC. “Square Foot” or “Square Footage” means the maximum amount of Cannabis Business Area registered with the City for a person to engage in a Commercial Cannabis Business, or by a state license in the absence of any City registration, not deducting for unutilized square footage, and shall be the basis for the tax.
DD. “State” means the State of California.
EE. “State License” means a State license issued pursuant to California Business & Professions Code §§ 19300 et seq. or other applicable State law.
FF. “Testing Laboratory” means a facility, entity, or site in the state which offers or performs testing of Cannabis or “Cannabis Products” and which is both of the following:
a. Accredited by an accrediting body which is independent from all other persons involved in the cannabis industry in the state; and
b. Registered with the California State Department of Public Health.
GG. “Transport” means the transfer of cannabis or cannabis products from the permitted business location of one permittee or licensee to the permitted business location of another permittee or licensee, for the purposes of conducting Commercial Cannabis activity authorized pursuant to State law.
HH. “Transporter” means a person issued all required State and City registrations and authorizations to transport cannabis or cannabis products between permitted facilities.
5C-040: TAX AUTHORIZATION
A Cannabis Industry Tax is hereby imposed on every Person who is engaged in a Commercial Cannabis Business in the City as prescribed herein, from and after the effective date of a City Council resolution implementing the tax. It is unlawful for any Person to transact or carry on any Commercial Cannabis Business in the City without paying, in accordance with this Chapter, the Cannabis Industry Tax imposed by this Section.
June 23, 2022 Pg. 67
5C-050: TAX ON COMMERCIAL CANNABIS BUSINESS
A. Every Person who is engaged in a Commercial Cannabis Business in the City shall pay an annual Cannabis Business tax at a rate established by resolution of the City Council which rate shall not exceed twenty-five dollars ($25) per square foot of Commercial Cannabis Business area or fifteen percent (15%) of annual gross receipts per fiscal year, whichever is greater. When the rate is determined on a square footage basis, on July 1 of each fiscal year succeeding the year of imposition of a square footage based tax upon Commercial Cannabis Businesses, the amount of tax shall be increased by the most recent change in the annual average of the Consumer Price Index (“CPI”) for all urban consumers in the San FranciscoOakland-San Jose areas, as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any tax imposed by this subsection shall be made. The tax under this subsection shall not be imposed unless and until the City Council acts by resolution to do so.
B. The taxable square footage calculation shall be determined by including all portions of the premises where the Commercial Cannabis Business operates deducting therefrom driveways, sidewalks, landscaping, vacant unused space, areas used exclusively for office space, employee break rooms, restrooms, and storage space unrelated to the Commercial Cannabis Businesses.
C. If more than one Commercial Cannabis Business operates on the premises, each Person shall be responsible for paying the tax.
D. The City Council may by resolution, in its discretion, implement a tax rate lower than the maximum rates set established within Subsection A for all Persons engaged in any Commercial Cannabis Business within the City, or establish differing tax rates for different categories of Commercial Cannabis Business, subject to the maximum rate established in Subsection A. The City Council also may, by resolution, increase any such tax rate from time to time, not to exceed the maximum tax rate authorized in Subsection A of this Section.
5C-060: REPORTING AND REMITTANCE OF TAX
The Cannabis Business Tax imposed by this Chapter shall be imposed on a fiscal year basis and shall be due and payable in quarterly installments as follows:
A. Each person owning a Cannabis Business Tax shall, on or before the last day of the month following the close of each Fiscal Year quarter, prepare and submit a tax statement on the form prescribed by the Collector and remit to the Collector the tax due. The tax due shall be no less than the quarterly installment due, but the taxpayer may at any time pay the tax due for the entire fiscal year. Each Commercial Cannabis Business shall June 23, 2022 Pg. 68
pay on or before the last day of the month following the close of each calendar quarter.
B. If the Cannabis Business Tax is owed for Commercial
Cannabis Cultivation, the tax due shall be paid based upon the Square Footage allowed by the City. The tax will not be reduced, prorated or adjusted downward for any Square Footage which is allowed by the City but actually not utilized for Cultivation. If the Cultivation begins in the middle of a fiscal year, the Collector shall prorate, in monthly increments, the amount due for the fiscal year.
C. All tax statements shall be completed on forms prescribed by the Collector.
D. Tax statements and payments for all outstanding taxes owed to the City are immediately due to the Collector upon cessation of business for any reason.
E. The Collector may, as part of administering the tax and in his or her discretion, modify the form of payment and take such other administrative actions as needed to facilitate the collection of the tax. 5C-070: REGISTRATION.
In order that the City will have an accurate record of parties collecting the Cannabis Business Tax, prior to commencing business each Person engaged in a Commercial Cannabis Business must register such Commercial Cannabis Business with the Collector, submitting to the Collector any information deemed necessary by the Collector.
5C-080: PAYMENTS AND COMMUNICATIONS – TIMELY
REMITTANCE.
Whenever any payment, statement, report, request or other communication is due, it must be received by the Collector on or before the final due date. A postmark will not be accepted as timely remittance. If the due date falls on Saturday, Sunday or a State holiday, the due date shall be the next regular business day on which the City is open to the public. 5C-090: PAYMENT – WHEN TAXES DEEMED DELINQUENT.
Unless otherwise specifically provided under other provisions of this Chapter, the taxes required to be paid pursuant to this Chapter shall be deemed delinquent if not received by the Collector on or before the due date as specified in Sections 5C-060.
5C-100: NOTICE NOT REQUIRED BY CITY.
The Collector is not required to send a delinquency or other notice, statement, bill or invoice to any Person subject to the provisions of this June 23, 2022 Pg. 69
Chapter. Failure to send any such document shall not affect the validity of any tax or penalty due under the provisions of this Chapter. 5C-110: PENALTIES AND INTEREST.
A. Any Person who fails or refuses to pay any Cannabis Business Tax required to be paid pursuant to this Chapter 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 at the rate of one and one-half percent (1.5%) per month;
2. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one and one-half percent (1.5%) per month on the unpaid tax; and
3. Interest shall be applied at the rate of one and one-half percent (1.5%) per month on the first day of the month for the full month, and will continue to accrue monthly on the tax until the balance is paid in full.
B. Whenever a check or electronic payment is submitted in payment of a Cannabis Business Tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due, the returned check fee, a penalty in the amount of the returned check fee, the penalties and interest as provided for in this Section, and any other 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 a Commercial Cannabis Business in the City, together with all applicable penalties and interest calculated in accordance with this Section.
D. Any Person whose Cannabis Business Tax is delinquent by at least sixty (60) calendar days may be subject to revocation of each and all City permits associated with the subject Commercial Cannabis Business.
E. The Collector is authorized to make an assessment in the manner provided for in Section 5C-050 of the anticipated tax liability for up to the following four quarters if any Person has failed to file one or more returns or payments, or who has filed one or more delinquent returns or payments, within any twelve (12) month period, without curing the failure or delinquency within sixty (60) days after the original due date after written notice from Collector of the failure or delinquency. Failure to remit the anticipated tax within sixty (60) days after the notice of assessment shall be June 23, 2022 Pg. 70
grounds for revocation of each and all City permits associated with the subject Commercial Cannabis Business.
5C-120: REFUNDS AND CREDITS.
A. No refund shall be made of any tax collected under this Chapter, except as provided in Section 5C-130.
B. No refund of any tax collected pursuant to this Chapter shall be made because of the discontinuation, dissolution or other termination of a Commercial Cannabis Business.
5C-130: REFUNDS AND PROCEDURES.
A. Whenever the amount of any Cannabis Business Tax, penalty or interest has been overpaid, paid more than once or has been erroneously collected or received by the City under this Chapter, it may be refunded to the claimant who paid the tax, provided that a written claim for refund is timely filed with the Collector within one (1) year of the date the tax was originally due and payable.
B. The Collector, his or her deputies, or any other City officer charged with the administration of this Chapter shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant’s books and business records after request by the Collector to do so. The Collector may collect a fee adopted by the City Council to pay for the cost of examination and audit if the books and records are be provided in a form which is insufficient to allow the Collector to make a determination on the claim for refund.
C. In the event that the Cannabis Business Tax was erroneously paid and the error is attributable to the City, the City shall refund the amount of tax erroneously paid, but only as to such period not exceeding one (1) year from the date when the error presented to the Collector in a timely claim. 5C-140: EXEMPTIONS FROM THE TAX.
A. The provisions of this Chapter shall not apply to noncommercial Cannabis Cultivation for personal use.
B. The provisions of this Chapter shall not apply to personal use of Cannabis which is specifically exempted from State licensing requirements, which satisfies the definition of personal use or equivalent terminology under State law, and for which the individual receives no compensation whatsoever related to that personal use.
June 23, 2022 Pg. 71
5C-150: ADMINISTRATION OF THE TAX.
A. It shall be the duty of the Collector to collect the taxes, penalties and/or fees, and to perform the duties required by this Chapter.
B. For purposes of administration and enforcement of this Chapter generally, the Collector may from time to time promulgate such administrative rules and procedures consistent with the purpose, intent and express terms of this Chapter as she or he deems necessary to implement or clarify such provisions or aid in enforcement.
C. The Collector may take such administrative actions as needed to administer the tax, including but not limited to:
1. Provide to all Commercial Cannabis Business taxpayers forms for the reporting of the tax;
2. Adjust tax rates in accordance with this Chapter, including related resolutions of the City Council;
3. Provide information to any taxpayer concerning the provisions of this Chapter;
4. Receive and record all taxes remitted to the City as provided in this Chapter;
5. Maintain records of taxpayer reports and taxes collected pursuant to this Chapter;
6. Assess penalties and interest to taxpayers pursuant to this Chapter; and
7. Determine amounts owed and enforce collection pursuant to this Chapter.
5C-160: ENFORCEMENT – ACTION TO COLLECT.
A. Any taxes, penalties and/or fees required to be paid under the provisions of this Chapter shall be deemed a debt owed to the City. Any Person owing money to the City under the provisions of this Chapter shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this Section shall not be deemed a limitation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, penalties and/or fees imposed by this Chapter or the failure to comply with any provisions of this Chapter.
B. In addition to any other remedies available under federal, State or local law, if any amount required to be paid to the City under this Chapter is not paid when due, the Collector may, within three (3) years after the June 23, 2022 Pg. 72
amount is due, record a certificate of lien specifying the amount of taxes, fees and penalties due, and the name and address of the Person as it appears on the records of the Collector. The lien shall also specify that the Collector has complied with all provisions of this Chapter in the determination of the amount required to be paid. From the time of the filing of the record, the amount required to be paid, together with penalties thereon, constitutes a lien upon all real property in the County owned by the Person, or subsequently acquired by the Person before the lien expires. The lien has the force, effect and priority of a judgment lien and shall continue for ten (10) years from the filing of the certificate unless sooner released or otherwise discharged. A fee may be adopted by the City Council and collected by the Collector to pay for the cost of recording and administering the lien.
C. To the extent authorized by State law, at any time within three (3) years after any Person is delinquent in the payment of any amount herein required to be paid or within three (3) years after the last recording of a certificate of lien under Subsection B of this Section, the Collector may issue a tax warrant for the enforcement of any liens and for the collection of any amount required to be paid to the City under this Chapter. The warrant shall be directed to the Chief of Police or other appropriate official and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy and sale pursuant to a writ of execution. The Collector may pay or advance all fees, commissions and expenses for service provided in connection with the execution of the tax warrant, including fees for publication in the newspaper.
D. To the extent authorized by State law, at any time within three (3) years after recording a lien against any Person, if the lien is not discharged and released in full, the Collector may forthwith seize any asset or property, real or Personal (including but not limited to, bank account), of the Person and sell at public auction the asset or property, or a sufficient part of it to pay the amount due together with any penalties and interest imposed for the delinquency and any cost incurred on account of the seizure and sale. Assets or property of the Person subject to seizure and sale subject to this Chapter shall not include any assets or property which is exempt from execution under the provisions of the California Code of Civil Procedure. 5C-170: APPORTIONMENT.
If a Commercial Cannabis Business subject to a Cannabis Business Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Business Tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on within the City. For purposes of apportionment as may be required by law, the Collector may promulgate administrative procedures for apportionment in accordance June 23, 2022 Pg. 73
with State law or otherwise negotiate an apportionment agreement to be approved by the City Council or designee.
5C-180: CONSTITUTIONALITY AND LEGALITY.
This tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law. None of the tax provided for in this Chapter shall be applied in a manner which causes an undue burden upon interstate commerce, a violation of the equal protection and due process clauses of the Constitutions of the United States or the State of California, or a violation of any other provisions of the California Constitution or State law.
5C-190: AUDIT AND EXAMINATION OF RECORDS AND
EQUIPMENT.
A. The Collector shall have the power to audit and examine all books and records of any Person engaged in Commercial Cannabis Businesses in the City, including both State and federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of Persons engaged in Commercial Cannabis Businesses, and, where necessary, all facilities, premises and equipment of any Person engaged in Commercial Cannabis Businesses within the City, for the purpose of ascertaining the amount of Cannabis Business Tax, if any, required to be paid under this Chapter, and for the purpose of verifying any statements or any item thereof when filed by any Person pursuant to this Chapter. If such Person, after written demand by the Collector, refuses to make available for audit, examination or verification such books, records, facilities, premises or equipment as the Collector requests, the Collector may, after full consideration of all information within his or her knowledge concerning the Commercial Cannabis Businesses and activities of the Person so refusing, make an assessment against the Commercial Cannabis Business of the taxes estimated to be due under this Chapter. The Collector may collect a fee adopted by the City Council to pay for the cost of examination and audit should the books and records be provided in a form insufficient to allow the Collector to make a determination of tax due.
B. It shall be the duty of every Person liable for the collection and payment to the City of any tax imposed by this Chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as she or he may have been liable for the collection of and payment to the City, which records the Collector shall have the right to inspect at all reasonable times.
5C-200: OTHER LICENSES, PERMITS, TAXES, FEES, OR
CHARGES.
June 23, 2022 Pg. 74
Nothing contained in this Chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit, registration or license required by, under or by virtue of any provision of any other title or chapter of the Avenal Municipal Code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other title or chapter of this code or any other ordinance or resolution by the City. Any references made or contained in any other title or chapter of the Avenal Municipal Code to any licenses, license taxes, fees or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges or schedule of license fees, provided for in other titles or chapters of the Avenal Municipal Code.
5C-210: CHANGE OF OWNERSHIP.
A. If any Person, while liable for any amount under this Chapter, sells, assigns or otherwise transfers the Commercial Cannabis Business, whether voluntarily or involuntarily, the Person’s successor, assignee or other transferee, or other Person or entity obtaining ownership or control of the business (“Transferee”), shall be jointly and severally liable with the Person for satisfying all of the Cannabis Business Tax liability owed to the City associated with the business when due hereunder. Failure to do so for the benefit of the City will result in being personally liable to the City for the full amount of the unpaid tax liability, interest and penalties. The Transferee must in writing notify the Collector of the date of transfer at least thirty (30) days before the transfer date; or if the agreement to sell, transfer or otherwise dispose of the business was made less than thirty (30) days before the date of transfer, written notice shall be provided immediately upon the existence of the agreement. All Transferees are required to meet each and every condition outlined in this Chapter and have prior written approval of the City prior to the transfer.
B. The Transferee shall be deemed to have complied with the requirement of this section to satisfy the unpaid tax liability if the Transferee complied with the purchaser/transferee steps within California Revenue and Taxation Code § 7283.5, by withholding from the purchase price, for the benefit of the City, an amount sufficient to cover the tax liability, or by otherwise paying the tax liability and obtaining from the Collector a “Tax Clearance Certificate” showing that all outstanding tax liability has been paid and stating that no amount is due through the date of transfer.
C. The Collector, within ninety (90) days after receiving a written request from the Transferee, may issue a “Tax Clearance Certificate” stating either the amount of tax liability due and owing for the business, or stating June 23, 2022 Pg. 75
that there is no tax liability due and owing for the business through a stated date. The Collector may also request financial records from the current or former owner or operator of a Commercial Cannabis Business to audit the tax which may be due and owing. The Collector shall issue a “Tax Clearance Certificate” within thirty (30) days after completing the audit, stating the amount of the tax liability owed, if any, unless the Collector determines that the records provided in connection with the audit are insufficient to determine whether taxes are due and owed or in what amount. If the Collector determines that the records are insufficient, the Collector may rely upon the facts and information available to estimate any tax liability. The Collector may issue a “Tax Clearance Certificate” stating the amount of the tax liability, if any, based upon such facts and information available. Unless an appeal is timely filed in accordance with Section 5C-270, the “Tax Clearance Certificate” shall serve as conclusive evidence of the tax liability associated with the property through the date stated on the “Tax Clearance Certificate.” 5C-220: PAYMENT OF TAXES DOES NOT AUTHORIZE
UNLAWFUL BUSINESS.
A. The payment of a tax required by this Chapter, and its acceptance by the City, shall not entitle any Person to carry on any Commercial Cannabis Business unless the Person has complied with all of the requirements of this Code and all other applicable state laws.
B. No tax paid under the provisions of this Chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law. 5C-230: DEFICIENCY DETERMINATIONS.
If the Collector is not satisfied that any tax return or other statement filed as required under this Chapter is correct, or that the amount of tax is correctly computed, she or he may compute and determine the amount to be paid and make a deficiency determination upon the facts contained in the tax return or statement or any information in his or her possession or which may come into his or her possession within three (3) years after the date the tax was originally due and payable, or such later date as allowable by law. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a Person discontinues engaging in a business, a deficiency determination may be made at any time within three (3) years thereafter, or such later date as allowable by law, as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the Person concerned in the same manner as notices of assessment are given under Section 5C-250.
June 23, 2022 Pg. 76
5C-240: FAILURE TO REPORT.
A. Under any of the following circumstances and at any time, the Collector may make and give notice of an assessment of the amount of tax owed by a Person under this Chapter.
1. If the Person has not filed a complete return or statement required under this Chapter; or
2. If the Person has not timely paid any tax, fee, interest and/or penalty due under this Chapter; or
3. If the Person has not, after demand by the Collector, filed a corrected return or statement, or furnished to the Collector adequate substantiation of the information contained in a return or statement filed previously; or
4. If the Collector determines that the nonpayment of any business tax due under this Chapter is due to fraud, a
penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this Chapter and any other penalties allowed by law.
B. The notice of assessment shall separately set forth the amount of any tax known or estimated by the Collector to be due, after consideration of all information within the Collector’s knowledge concerning the business and activities of the Person assessed, to be due under each applicable section of this Chapter, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 5C-250: TAX ASSESSMENT – NOTICE REQUIREMENTS.
The notice of assessment shall be served upon the Person either by personal delivery, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the Person at the address of the location of the business or to such other address as he, she or it shall register with the Collector for the purpose of receiving notices provided under this Chapter, or, should the Person have no address registered with the Collector for such purpose, then to such Person’s last known address. For the purposes of this Section, a service by mail is complete at the time of deposit in the United States mail.
5C-260: TAX ASSESSMENT – HEARING, APPLICATION, AND
DETERMINATION.
Within ten (10) calendar days from the date of service, the Person may apply in writing to the Collector for a hearing on the assessment. If June 23, 2022 Pg. 77
application for a hearing before the City is not timely made within the prescribed time, the tax assessed by the Collector shall become final, conclusive and no further right to appeal or hearing shall exist. Within thirty (30) business days after the receipt of any such application for hearing, the Collector shall cause the matter to be set for hearing before him or her not later than thirty-five (35) business days after the receipt of the application, unless a later date is agreed to by the Collector and the Person requesting the hearing. Notice of such hearing shall be given by the Collector to the Person requesting such hearing not later than five (5) business days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Collector should not be confirmed and fixed as the tax due. After such hearing, the Collector shall determine and reassess the proper tax to be charged and shall give written notice to the Person in the manner prescribed in Section 5C-250 for giving notice of assessment. The amount determined to be due shall become due and payable thirty (30) calendar days after written notice is provided, unless it is appealed to the City Council.
5C-270: APPEAL PROCEDURE.
Any taxpayer aggrieved by any decision of the Collector with respect to the amount of tax, fee, interest and penalties, if any, due under this Chapter may in writing appeal to the City Council as provided in Title 1, Chapter 4 of the Avenal Municipal Code, provided that the full amount of the tax found to be due is deposited with the City Clerk no later than the time when the written appeal is received by the City Clerk.
5C-280: CONVICTION FOR CHAPTER VIOLATION – TAXES NOT
WAIVED.
The conviction and punishment of any Person for failure to pay a required tax, fee, penalty and/or interest under this Chapter shall not excuse or exempt such Person from any civil action for the amounts due under this Chapter. No civil action shall prevent a criminal prosecution for any violation of the provisions of this Chapter or of any State law requiring the payment of all taxes.
5C-290: VIOLATION DEEMED MISDEMEANOR.
Any Person who violates any provision of this Chapter or who other than by a sworn statement, knowingly or intentionally misrepresents to any officer or employee of the City any material fact herein required to be provided is guilty of a misdemeanor punishable up to the maximum provided in Government Code § 36901. A Person who on a sworn statement states as true a material fact which she or he knows to be false is guilty of perjury.
June 23, 2022 Pg. 78
5C-300: REMEDIES CUMULATIVE.
All remedies prescribed under this Chapter shall be cumulative and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. 5C-310: AMENDMENT OR REPEAL.
This Chapter may be amended by ordinance of the Avenal City Council without a vote of the People except that, as required by Article XIIIC of the California Constitution, voter approval is required for any amendment which would increase the rate of any tax levied pursuant to this Chapter above the maximum rates established by this Chapter. The People of the City of Avenal affirm that each and all of the following actions shall not constitute an increase of the rate of a tax:
A. The restoration of the rate of the tax to a rate which is no higher than the maximum allowed by this Chapter, if the City Council has acted to suspend or reduce the rate of the tax;
B. An action which interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the text of this Chapter;
C. The collection of the tax imposed by this Chapter, even if the City had, for some period of time, failed to collect the tax; D. The establishment of a class of Persons which are exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Chapter); or
E. The City Council’s adoption of a resolution, as authorized by Section 5C-050, to raise the tax rate provided that the rate is not increased to a rate higher than the maximum established in this Chapter. 5C-320: SUSPENSION OF COLLECTION.
The City Council shall have authority to temporarily suspend collection of all or a portion of the tax imposed by this chapter by resolution unanimously approved by all members of the entire City Council, in accordance with applicable State law. However, the authority to levy the tax imposed by this chapter shall not expire or otherwise terminate, unless terminated by a duly enacted ordinance which is approved at a regular meeting of, and by unanimous vote of all five (5) of the seats on, the City Council.
June 23, 2022 Pg. 79
Section 3. CEQA REVIEW. The City Council hereby finds that this Ordinance is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15060(c)(2), 15061(b)(3) and 15378(b)(2) and (4). The City Manager is hereby directed to ensure that a Notice of Exemption is filed pursuant to CEQA Guidelines section 15062 [14 C.C.R. § 15062].
Section 4. NO LIABILITY. The provisions of this Ordinance shall not in any way be construed as imposing any duty of care, liability or responsibility for damage to Person or property upon the City of Avenal, or any official, employee or agent thereof.
Section 5. PENDING ACTIONS. Nothing in this Ordinance or in the codes hereby adopted shall be construed to affect any suit or proceeding pending or impending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing, under any act or Ordinance or code repealed by this Ordinance, nor shall any just or legal right or remedy of any character be lost, impaired or affected by this Ordinance.
Section 6. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any Person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other Person or circumstance. The City Council of the City of Avenal hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.
Section 7. CONSTRUCTION. The City Council intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. To the extent the provisions of the Avenal Municipal Code as amended by this Ordinance, if any, are substantially the same as provisions in the Avenal Municipal Code existing prior to the effectiveness of this June 23, 2022 Pg. 80
Ordinance, then those amended provisions shall be construed as continuations of the earlier provisions and not as new enactments.
Section 7. EFFECTIVE DATE. Pursuant to Elections Code § 9217, this Ordinance shall be deemed adopted on the date when the final vote is declared by the City Council and this Ordinance shall go into effect ten (10) days after that date, contingent upon approval by a majority of the voters voting on the measure in the November 8, 2022 election.
Section 8. CERTIFICATION; PUBLICATION. Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law.
THE FOREGOING ORDINANCE was approved by the City Council of the City of Avenal, State of California, on __June_23,_2022 at a regular meeting of said Council duly and regularly convened on said day by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ALVARO PRECIADO, Mayor
ATTEST:
Maria A. Ortiz, City Clerk
June 23, 2022 Pg. 81
BEFORE THE CITY COUNCIL OF THE
CITY OF AVENAL
IN THE MATTER OF:
Resolution Calling City Election for Voter
Approval of Commercial Cannabis Business
Tax; and Specifications of the Election
Order.
RESOLUTION 2022-
WHEREAS, approval of an excise tax on cannabis business ensures that the City of Avenal (“City”) has more local funding for vital City services which cannot be taken by the State, ensuring our tax dollars are spent locally for the benefit of residents of Avenal;
WHEREAS, when a City seeks voter approval of a new local excise tax, Article XIIIC § 2(b) of the California Constitution requires the election to be consolidated with the general municipal election for City Council members, except in cases in which a City Council has unanimously declared that there is a fiscal emergency; WHEREAS, in recent years the City has experienced insufficient growth in sales tax revenues and other State revenues while the scope and cost of providing essential City services has increased along with inflation;
WHEREAS, projected deficits in the General Fund and other operating funds threatens a reduction in staffing and services in all departments including public safety personnel and other essential City services potentially placing Avenal residents at risk in emergency situations;
WHEREAS, the City’s expenditure trends, and reduction of federal funding of public safety positions, point to a potential deficit in the General Fund and/or other operating funds in the upcoming fiscal years which will limit the City’s ability to meet public safety standards, fund recreational programs and facilities, maintain and improve parks, repair and improve streets, and provide other general and essential services;
WHEREAS, the City Council received information during the budget review process for the last couple of years which demonstrated that the City will be operating at a significant General Fund and/or other operating fund deficits commencing in fiscal year 2022 and said deficit is estimated to continue in current and subsequent fiscal years even with significant cuts to expenditures;
WHEREAS, on November 8, 2016, the voters of California adopted Proposition 64 which legalized under State law the use of cannabis for adult-use and established maximum cultivation allowance of six (6) plants for personal use. The “Control, Regulate June 23, 2022 Pg. 82
and Tax Adult Use of Marijuana Act,” approved by the State’s voters, allows for local control of land uses regarding adult-use cannabis, and reasonable regulation of personal cultivation of up to six (6) plants within a residence; WHEREAS, at a public meeting held on June 23, 2022 the City Council considered calling a municipal election to submit to the voters for approval, a proposed commercial cannabis business tax as authorized by California Government Code § 37100.5;
WHEREAS, the statutory deadline to authorize submittal of said commercial cannabis business tax measure to the County of Kings’s elections office is scheduled to expire on or about August 11, 2022 for the November 8, 2022 regular election date and the County’s administrative deadline for submittal of relevant documentation is August 11, 2022;
WHEREAS, the new business tax would be imposed on commercial cannabis businesses. The tax rate would be $25 per square foot of commercial cannabis business area or fifteen percent (15%) of annual gross receipts per fiscal year) of the sales price of the property, whichever is greater. The business tax revenue would be collected by city clerk, or other city official charged by the City Manager with the administration of the provisions of Chapter 5C of the Avenal Municipal Code. Collection of all or any portion of the tax could be temporarily suspended by a unanimous vote of the City Council. The tax would require approval of at least a majority of voters voting on the measure and approval of this resolution by at least two-thirds vote of all members of the City Council; WHEREAS, based upon all of the information presented to the City Council as of the date of this resolution, both written and oral, including the staff reports, minutes and other relevant materials, the commercial cannabis business tax does not constitute a project under CEQA Guidelines 15060(c)(2), 15061(b)(3) and 15378(b)(2) and (4) and therefore review under CEQA is not required; and
WHEREAS, on June 23, 2022, the City Council held a public meeting to consider placing a commercial cannabis business tax ordinance before the voters of the City of Avenal at an election to be held on November 8, 2022.
UPON MOTION OF COUNCIL MEMBER , SECONDED BY
COUNCIL MEMBER , THE FOLLOWING WAS PASSED, APPROVED,
AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL MEETING HELD June , 2022, BY THE FOLLOWING VOTE:
AYES:
NOES:
ABSTAIN:
ABSENT:
June 23, 2022 Pg. 83
ATTEST:
Maria A. Ortiz, City Clerk
* * * * * * * * * * * * * * * * * *
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL:
FOUND the foregoing recitals to be true and ORDERED that an election be held within the City of Avenal on the 8th day of November, 2022, for the purpose of submitting to all voters within the City a ballot measure with the following specifications:
1. Pursuant to the California Constitution, Article XIIIC, § 2(b), Government Code § 53724 and Elections Code § 9222, the City Council of the City of Avenal hereby calls and orders an election at which it shall submit to the qualified voters of the City, a measure relating to the adoption of a commercial cannabis business tax.
This measure shall be designated by an alphabetical letter by the Kings County elections official or other qualified official, and the City Manager shall in writing request one or more alphabetical letter designations.
2. The ordinance imposing a commercial cannabis business tax to be approved and adopted by the voters is set forth in EXHIBIT A attached hereto and incorporated by this reference. The City Council hereby approves said ordinance, the form thereof, and its submission to the voters of the City at an election to be held on November 8, 2022, as required by state law, subject to the approval of a majority of the voters voting on the measure at the election called by the adoption of the instant resolution. The ordinance enacts a commercial cannabis business tax at the rate of $25 per square foot of commercial cannabis business area or fifteen percent (15%) of annual gross receipts per fiscal year, whichever is greater.
3. In accordance with Elections Code § 12111 and Government Code § 6061, the City Clerk is hereby authorized and directed to cause notice of the measure to be published once in a newspaper of general circulation, printed, published and/or circulated in the City of Avenal and hereby designated for that purpose by the City Council of the City of Avenal. The City Clerk may enlist the assistance of the County of Kings elections office to prepare and publish the required notice.
4. Pursuant to the requirements of the laws of the State of California relating to cities within said State, the following proposed measure ballot label shall be added to the ballot for the November 8, 2022, election and thereby submitted to the voters of the City:
June 23, 2022 Pg. 84
Shall Ordinance 2022-05 be adopted authorizing a
commercial cannabis business tax in the City of Avenal on commercial cannabis businesses up to $25 per square foot (annually adjusted by CPI) or at 15% of gross receipts, to maintain essential public safety and general City services including, but not limited to, police, drug addiction and gang prevention, park maintenance, street maintenance for Avenal residents, generating undetermined revenue,
potentially up to $400,000 to $600,000 annually until
repealed?
Yes
No
5. The full text of the ballot label appearing in the preceding section shall be printed in the sample and final ballots but the full text of Ordinance No. 2022-05 shall not be printed in the sample and final ballots and voter information guide. In compliance with Elections Code § 9223, the City Clerk shall promptly print, certify and post in the Office of the City Clerk and on the City’s website, a copy of Ordinance No. 2022-05 and the ballot label appearing in the preceding section, and shall provide a copy of them to any City voter upon request and free of charge.
6. The official ballot to be used at said election shall conform to the laws of the State of California with relation thereto.
7. The City Council hereby requests and consents to the County of Kings elections official’s consolidation of this election with other elections, if any, which may be held in whole or in part of the territory of the City, as provided in Elections Code §§ 10400 et seq., on November 8, 2022, for the ease and convenience of the registered voters and to take advantage of any cost savings possible by such consolidation.
8. The City Clerk may enlist the assistance of the County of Kings elections official in regard to the said consolidated general municipal election, as the City Clerk deems reasonably necessary or convenient.
9. The City will reimburse the County of Kings for the actual cost incurred by the county elections official in conducting the municipal election upon receipt of an invoice stating the amount due as determined by the elections official in accordance with all applicable laws. The City Manager is authorized to sign an appropriate written agreement between the City and the County of Kings for that purpose, following review and approval as to form by the City Attorney.
10.The election shall be held and conducted as provided by law for holding municipal elections.
June 23, 2022 Pg. 85
11.The notice of the time and place of holding the election is given and the City Clerk is directed to give further or additional notice of the election in the time, form and manner as required by law. The City Clerk may enlist the assistance of the County of Kings elections office in regard to the same.
12.The City Clerk is hereby directed to submit to the City Attorney a certified copy of the measure pursuant to Elections Code § 9280. The City Attorney is hereby authorized and directed to prepare an impartial analysis of the ballot measure showing the effect of the measure on the existing law and operation of the measure, said analysis to be submitted by the City Attorney to the County of Kings elections office, or other appropriate office, for printing by the date set by the County of Kings elections official for the filing of arguments for and against the measure. The analysis shall not exceed five hundred (500) words in length and shall otherwise comply in all respects with the applicable provisions of the Elections Code.
13.In accordance with the provisions of the Elections Code §§ 9290 et seq., the Mayor or Mayor Pro Tempore or their designee from the City’s staff is authorized and directed to submit an argument in support of the measure and a response to any argument in opposition to the measure.
14.The City Clerk in conjunction with the County of Kings election official shall fix and determine a date for submission of arguments for or against said measure, and said date shall be posted in the Office of the City Clerk.
15.The election on the measure set forth in sections 2 and 4 of this resolution shall be held and conducted, the votes canvassed and the returns made, and the results ascertained and determined as provided for herein. In all particulars not prescribed in this resolution, the election shall be held as prescribed in the Elections Code of the State of California, including but not limited to Elections Code § 10262(a) pursuant to Elections Code § 10101 to the extent applicable. The Board of Supervisors of the County of Kings or other appropriate county official is authorized to canvas the returns of that election with respect to the votes cast in the City of Avenal and certify the results to the City Council. At the next regular meeting of the City Council occurring after the returns of the election have been canvassed and the certification of the results to the City Council, the City Council shall cause to be entered in its minutes a statement of the results of the election.
16.The City Manager is hereby authorized and directed to expend the funds necessary and convenient to pay for the City’s cost of placing the measure on the election ballot.
17.The City Clerk is hereby ordered to certify to the adoption of this resolution and to file copies hereof, so certified, with the Clerk of the Board of Supervisors of the June 23, 2022 Pg. 86
County of Kings and with the elections official of the County of Kings, and to enter it into the book of original resolutions.
18.Authorized the Mayor, City Manager, City Clerk and the respective city and county election officials to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper and/or convenient and/or incidental thereto, including the signing of any updated version of this resolution which is reasonably necessary to conform to the requirements of the County of Kings and applicable laws.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Avenal held on the ___ day of June, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: __________________________
Alvaro Preciado, Mayor
ATTEST: ______________________________
Maria A. Ortiz, City Clerk
CLERKS CERTIFICATE
City of Avenal }
County of Kings }
State of California }
I, Maria A. Ortiz, City Clerk of the City of Avenal, hereby certify that this is a full, true and correct copy of Resolution No. 2022-____ duly passed by the City Council of the City of Avenal at a regular meeting thereof held on the __th day of June, 2022, by the vote as set forth therein.
DATED: _______________ ATTEST:
__________________________________
Maria A. Ortiz, City Clerk
June 23, 2022 Pg. 87
NOTICE OF ELECTION
AND
MEASURE TO BE VOTED ON
ORDINANCES OF THE CITY OF AVENAL ENACTING A
ONE PERCENT (1.0% — ONE-CENT) GENERAL SALES TAX
AND
A CANNABIS BUSINESS TAX.
NOTICE IS HEREBY GIVEN that a general municipal election will be held in the City of Avenal on Tuesday, November 8, 2022, between the hours of 7:00 AM and 8:00 PM, to fill two full-term seats on the City Council and the following measures are to be voted on:
Avenal Continuation of Essential City Services Funding
To preserve the safety and character of Avenal, and
maintain essential general City services for Avenal
residents including police, 911 emergency response, fire protection, disaster preparedness, recreational programs and facilities, park maintenance and improvements, street maintenance and repairs and other essential services, shall Ordinance No. 2022-04, imposing a 1-cent general sales
and use tax, be adopted? Estimated revenues between
$400,000 and $500,000 annually, indefinitely.
Yes
No
If this measure is approved, Ordinance No. 2022-04 of the City of Avenal (“City”) will add Chapter 5B to Title 3 of the Municipal Code of the City of Avenal, imposing a one (1) cent retail transactions and use tax (“sales tax”) upon all retailers within the incorporated territory of the City. The revenues will be deposited into the City’s general fund. The City Council would have authority to at any time suspend collection of all or a portion of the sales tax.
Shall Ordinance 2022-05 be adopted authorizing a
commercial cannabis business tax in the City of Avenal
on commercial cannabis businesses up to $25 per square
foot (annually adjusted by CPI) or at 15% of gross
receipts, to maintain essential public safety and general City services including, but not limited to, police, drug addiction and gang prevention, park maintenance, street maintenance for Avenal residents, generating
undetermined revenue, potentially up to $400,000 to
$600,000 annually until repealed?
Yes
No
June 23, 2022 Pg. 88
If this measure is approved, Ordinance No. 2022-05 of the City will add Chapter 5C to Title 3 of the Municipal Code of the City of Avenal, imposing a cannabis business tax within the incorporated territory of the City. The revenues will be deposited into the City’s general fund. The City Council would have authority to at any time suspend collection of all or a portion of the sales tax.
On June 23, 2022, the City Council approved the submittal of the ordinances to the voters of the City of Avenal, allowing the residents of Avenal to choose whether the sales tax and cannabis business tax should be adopted. If either of these measures are not approved by a majority vote of the votes cast on the measure in the election to be held on November 8, 2022, the City Council shall not adopt the respective ordinance(s) and the tax(es) will not be imposed.
A certified copy of the full text of the ordinance is posted in the office of the City Clerk, 919 Skyline Boulevard, Avenal, California 93204. If you desire a copy of the ordinance or measure, please call the City Clerk at 559-386-5766 and a copy will be mailed at no cost to you.
MD/03082017 - Avenal - Notice of Measure & Synopsis-1.rtf NOTE TO PUBLISHER: Please publish the synopsis above on or before July 8, 2022. In no event should actual publication be delayed to occur after July 17, 2022. [EC §§ 12101 and 12111(b).]
MARIA A. ORTIZ, Avenal City Clerk
and City Elections Official
June 23, 2022 Pg. 89
District Taxes, Rates, and Effective Dates
(City): Indicates that district tax applies within the city limits and is in addition to other applicable state, local, and transit district taxes.
Certain cities provide addresses located within a special taxing jurisdiction.
DISTRICT SALES AND USE TAX RATES
Tax Area District Name and Acronym Rate Effective
Date End Date
Alameda County Alameda County Children’s Health and Child Care Transactions and Use Tax (ACCT) 0.50% 07-01-2021
Alameda County Essential Health Care Services Transactions and Use Tax (ACHC) 0.50% 07-01-2004
Alameda County Transactions and Use Tax (ACTU) 0.50% 07-01-2021 Alameda County Transportation Commission 2002 (ACTI) 0.50% 04-01-2002 03-31-2022 Alameda County Transportation Commission Transactions and Use Tax (ACTC) 0.50% 04-01-2015 Alameda County Transportation Commission 2022 (ACTT) 0.50% 04-01-2022 03-31-2045 Bay Area Rapid Transit District (BART) 0.50% 04-01-1970 Alameda (City) City of Alameda Transactions and Use Tax (ALTG) 0.50% 04-01-2019 Albany (City) City of Albany Transactions and Use Tax (ALBG) 0.50% 04-01-2013 Emeryville (City) City of Emeryville Police Fire Child Transactions and Use Tax (EMEF) 0.25% 07-01-2020 Hayward (City) City of Hayward Transactions and Use Tax (HWDG) 0.50% 10-01-2014 Newark (City) City of Newark Transactions and Use Tax (NEGT) 0.50% 04-01-2017 San Leandro (City) City of San Leandro 2015 Transactions and Use Tax (SLDG) 0.50% 04-01-2015 Union City (City) City of Union City Transactions and Use Tax (UCGF) 0.50% 04-01-2011 Amador County Amador County Fire Protection and Emergency Med. Services Transactions and Use Tax (AMCG) 0.50% 04-01-2009
Butte County
Oroville (City) City of Oroville Transactions and Use Tax (OVTG) 1.00% 04-01-2019 Paradise (Town) Town of Paradise Temporary Transactions and Use Tax (PTTG) 0.50% 04-01-2015 Calaveras County
Angels Camp (City) City of Angels Camp Transactions and Use Tax (ACGT) 0.50% 04-01-2019 Colusa County
Williams (City) City of Williams Transactions and Use Tax (WLMS) 0.50% 04-01-2007 Contra Costa County Bay Area Rapid Transit District (BART) 0.50% 04-01-1970 Contra Costa Transportation Authority (CCTA) 0.50% 04-01-1989 County of Contra Costa Transactions and Use Tax (CCTU) 0.50% 04-01-2021 Antioch (City) City of Antioch Increase Transactions and Use Tax (ANIT) 1.00% 04-01-2019 Concord (City) City of Concord 2021 Transactions and Use Tax (CNTU) 1.00% 04-01-2021 Concord (City) City of Concord Transactions and Use Tax (CNCD) 0.50% 04-01-2011 03-31-2021 El Cerrito (City) City of El Cerrito 2015 Transactions and Use Tax (ELCG) 1.00% 04-01-2015 El Cerrito (City) City of El Cerrito Street Improvements Transactions and Use Tax (ECSI) 0.50% 07-01-2008 Hercules (City) City of Hercules Temporary Transactions and Use Tax (HTGT) 0.50% 10-01-2012 Martinez (City) City of Martinez Road Maintenance and Improvement Transactions and Use Tax (MRMS) 0.50% 04-01-2017
Martinez (City) City of Martinez Transactions and Use Tax (MZGT) 0.50% 04-01-2019 Moraga (Town) Town of Moraga Transactions and Use Tax (MGAG) 1.00% 04-01-2013
STATE OF CALIFORNIA
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
CDTFA-105 REV. 25 (4-22)
June 23, 2022 Pg. 90
CDTFA-105 REV. 25 (4-22)
Tax Area District Name and Acronym Rate Effective
Date End Date
Orinda (City) City of Orinda Essential Services Transactions and Use Tax (ORTU) 1.00% 04-01-2021 Orinda (City) City of Orinda Transactions and Use Tax (ORGT) 0.50% 04-01-2013 03-31-2021 Pinole (City) City of Pinole 2015 Transactions and Use Tax (PNGT) 0.50% 04-01-2015 Pinole (City) City of Pinole Transactions and Use Tax (PNLE) 0.50% 04-01-2007 Pittsburg (City) City of Pittsburg Preservation of Citywide Service Temporary Transactions and Use Tax (PPTG) 0.50% 10-01-2012
Pleasant Hill (City) City of Pleasant Hill Transactions and Use Tax (PLGT) 0.50% 04-01-2017 Richmond (City) City of Richmond 2014 Transactions and Use Tax (RHMG) 0.50% 04-01-2015 Richmond (City) City of Richmond Transactions and Use Tax (RMGT) 0.50% 04-01-2005 San Pablo (City) City of San Pablo (EMS) Transactions and Use Tax (SPES) 0.25% 10-01-2014 San Pablo (City) City of San Pablo Transactions and Use Tax (SPRS) 0.25% 10-01-2017 Del Norte County Del Norte County Fairgrounds Transactions and Use Tax (DNCF) 0.25% 04-01-2015 03-31-2022 Del Norte County Unincorporated Area Transactions and Use Tax (DNTU) 1.00% 04-01-2021 Crescent City (City) Crescent City Transactions and Use Tax (CSTU) 1.00% 04-01-2021 El Dorado County
Placerville (City) City of Placerville Public Safety Transactions and Use Tax (PLPS) 0.25% 04-01-1999 Placerville (City) City of Placerville Special Transactions and Use Tax (PLST) 0.25% 04-01-2011 Placerville (City) City of Placerville Special Transactions and Use Tax for Water, Sewer, Drains, Street Facilities (PVWS) 0.50% 04-01-2017
South Lake Tahoe (City) City of South Lake Tahoe 2021 Transactions and Use Tax (SLTU) 1.00% 04-01-2021 South Lake Tahoe (City) City of South Lake Tahoe Transactions and Use Tax (SLTG) 0.50% 04-01-2005 Fresno County Fresno County Public Library Transactions and Use Tax (FCPL) 0.125% 04-01-1999 Fresno County Transportation Authority (FCTA) 0.50% 07-01-1987 Fresno County Zoo Authority (FCZA) 0.10% 04-01-2005
Coalinga (City) Coalinga General Transactions and Use Tax (COLG) 1.00% 04-01-2019 Fowler (City) City of Fowler Transactions and Use Tax (FWLG) 1.00% 04-01-2019 Fresno (City) City of Fresno Clean and Safe Parks Transactions and Use Tax (FCTU) 0.375% 07-01-2021 Huron (City) City of Huron Public Safety Special Transactions and Use Tax (HPST) 1.00% 04-01-2014 Kerman (City) City of Kerman Transactions and Use Tax (KERM) 1.00% 04-01-2019 Kingsburg (City) City of Kingsburg Transactions and Use Tax (KBTG) 1.00% 10-01-2018 Parlier (City) City of Parlier Transactions and Use Tax (PALR) 1.00% 04-01-2020 Reedley (City) City of Reedley Public Safety Transactions and Use Tax (RDPS) 0.50% 07-01-2008 Reedley (City) City of Reedley Transactions and Use Tax (REEB) 0.75% 07-01-2020 Sanger (City) City of Sanger Public Safety Transactions and Use Tax (SGPS) 0.75% 07-01-2008 Selma (City) City of Selma Public Safety Transactions and Use Tax (SLMA) 0.50% 04-01-2008 Glenn County
Orland (City) City of Orland Transactions and Use Tax (ORDG) 0.50% 04-01-2017 Humboldt County Humboldt County Transactions and Use Tax (HBGT) 0.50% 04-01-2015 Arcata (City) City of Arcata Transactions and Use Tax (ARGF) 0.75% 04-01-2009 Eureka (City) City of Eureka 2021 Supplemental Transactions and Use Tax (ERTU) 1.25% 07-01-2021 June 23, 2022 Pg. 91
CDTFA-105 REV. 25 (4-22)
Tax Area District Name and Acronym Rate Effective
Date End Date
Eureka (City) City of Eureka Supplemental Transactions and Use Tax (ERST) 0.50% 04-01-2011 06-30-2021 Eureka (City) City of Eureka Transactions and Use Tax (ERKA) 0.25% 04-01-2009 Fortuna (City) City of Fortuna Police and Essential Services Transactions and Use Tax (FOGT) 0.75% 04-01-2017 Rio Dell (City) City of Rio Dell Transactions and Use Tax (RDGT) 1.00% 04-01-2015 Trinidad (City) City of Trinidad Transactions and Use Tax (TRGF) 0.75% 04-01-2009 Imperial County Imperial County Local Transportation Authority (IMTA) 0.50% 04-01-1990 Calexico (City) Calexico General Fund Transactions and Use Tax (CXGF) 0.50% 10-01-2010 El Centro (City) City of El Centro Transactions and Use Tax (ECTG) 0.50% 04-01-2017 Inyo County Inyo County Rural Counties Transactions and Use Tax (INRC) 0.50% 10-01-1988 Bishop (City) City of Bishop Community Safety and Essential Services Transactions and Use Tax (BSTU) 1.00% 04-01-2021
Kern County
Arvin (City) City of Arvin Transactions and Use Tax (ARVN) 1.00% 04-01-2009 Bakersfield (City) City of Bakersfield Safety/Vital City Services and Use Tax (BSVG) 1.00% 04-01-2019 Delano (City) City of Delano Transactions and Use Tax (DLNO) 1.00% 04-01-2008 Ridgecrest (City) City of Ridgecrest Public Safety and Essential City Services Transactions and Use Tax (RIDG) 1.00% 04-01-2017
Taft (City) City of Taft Essential Services Protection Transactions and Use Tax (TETU) 1.00% 04-01-2022 Wasco (City) City of Wasco Transactions and Use Tax (WASG) 1.00% 04-01-2017 Kings County
Corcoran (City) City of Corcoran Transaction and Use Tax (CRCG) 1.00% 10-01-2017 Lake County
Clearlake (City) City of Clearlake Public Safety Transactions and Use Tax (CLPS) 0.50% 07-01-1995 Clearlake (City) City of Clearlake Road Maintenance and Improvement Transactions and Use Tax (CRMI) 1.00% 04-01-2017
Lakeport (City) City of Lakeport Public Safety and Essential City Services Transactions and Use Tax (LAKG) 1.00% 04-01-2017
Lakeport (City) City of Lakeport Transactions and Use Tax (LPGT) 0.50% 04-01-2005 Los Angeles County Los Angeles County Measure H Homeless (LACH) 0.25% 10-01-2017 Los Angeles County Metro Transportation Authority (LAMT) 0.50% 07-01-2009 Los Angeles County Traffic Improvement Plan (LAMA) 0.50% 07-01-2017 Los Angeles County Transportation Commission (LACT) 0.50% 07-01-1982 Los Angeles County Transportation Commission (LATC) 0.50% 04-01-1991 Alhambra (City) City of Alhambra Transactions and Use Tax (ALAL) 0.75% 07-01-2020 Arcadia (City) City of Arcadia Transactions and Use Tax (ACDA) 0.75% 01-01-2020 Avalon (City) City of Avalon Municipal Hospital and Clinic District (AMHC) 0.50% 10-01-2000 Azusa (City) City of Azusa Transactions and Use Tax (AZUZ) 0.75% 07-01-2020 Bell Gardens (City) City of Bell Gardens Transactions and Use Tax (BGTU) 0.75% 04-01-2021 Bellflower (City) City of Bellflower Transactions and Use Tax (BFTU) 0.75% 04-01-2021 Burbank (City) City of Burbank Infrastructure/Comm Sers Transactions and Use Tax (BURB) 0.75% 04-01-2019 Carson (City) City of Carson Essential Services Transactions and Use Tax (CETU) 0.75% 07-01-2021 June 23, 2022 Pg. 92
CDTFA-105 REV. 25 (4-22)
Tax Area District Name and Acronym Rate Effective
Date End Date
Commerce (City) City of Commerce 2021 Transactions and Use Tax (CMTU) 0.25% 04-01-2021 Commerce (City) City of Commerce Transactions and Use Tax (CMMG) 0.50% 04-01-2013 Compton (City) City of Compton Transactions and Use Tax (COMG) 1.00% 10-01-2016 Covina (City) City of Covina 2018 Transactions and Use Tax (COGT) 0.75% 04-01-2019 Cudahy (City) City of Cudahy Temporary Transactions and Use Tax (CDHG) 0.75% 04-01-2019 Culver City (City) City of Culver City Essential City Services Transactions and Use Tax (CLEG) 0.50% 04-01-2013 Culver City (City) City of Culver City Safety and Protection Transactions and Use Tax (CULG) 0.25% 04-01-2019 Downey (City) City of Downey Transactions and Use Tax (DWYG) 0.50% 04-01-2017 Duarte (City) City of Duarte Transactions and Use Tax (DUAD) 0.75% 07-01-2020 El Monte (City) City of El Monte Transactions and Use Tax (EMGF) 0.50% 04-01-2009 Gardena (City) City of Gardena Transactions and Use Tax (GARG) 0.75% 07-01-2020 Glendale (City) City of Glendale Essential City Services Transactions and Use Tax (GNDG) 0.75% 04-01-2019 Glendora (City) City of Glendora Transactions and Use Tax (GLDA) 0.75% 07-01-2019 Hawaiian Gardens (City) City of Hawaiian Gardens Transactions and Use Tax (HAHG) 0.75% 10-01-2020 Hawthorne (City) City of Hawthorne Transactions and Use Tax (HAWG) 0.75% 04-01-2018 Huntington Park (City) City of Huntington Park Transactions and Use Tax (HTPG) 0.75% 10-01-2018 Inglewood (City) City of Inglewood Vital City Services Transactions and Use Tax (IGWD) 0.50% 04-01-2007 Irwindale (City) City of Irwindale Transactions and Use Tax (IRDL) 0.75% 04-01-2020 La Puente (City) City of La Puente Safety and Protection Transactions and Use Tax (LUPG) 0.50% 04-01-2019 La Verne (City) City of La Verne Transactions and Use Tax (LALV) 0.75% 07-01-2020 Lakewood (City) City of Lakewood Transactions and Use Tax (LAKL) 0.75% 07-01-2020 Lancaster (City) City of Lancaster Transactions and Use Tax (LCTU) 0.75% 04-01-2021 Lawndale (City) City of Lawndale Vital City Services Transactions and Use Tax (LAWG) 0.75% 04-01-2019 Lomita (City) City of Lomita Local Transactions and Use Tax (LLTU) 0.75% 04-01-2021 Long Beach (City) City of Long Beach Transactions and Use Tax (LBTG)1 1.00% 01-01-2017 Lynwood (City) City of Lynwood Transactions and Use Tax (LWDG)1 1.00% 04-01-2017 Monrovia (City) City of Monrovia 2019 Transactions and Use Tax (MNRV) 0.75% 04-01-2020 Montebello (City) City of Montebello Transactions and Use Tax (MONH) 0.75% 07-01-2020 Norwalk (City) City of Norwalk Transactions and Use Tax (NORH) 0.75% 07-01-2020 Palmdale (City) City of Palmdale Transactions and Use Tax (PDTU) 0.75% 04-01-2021 Paramount (City) City of Paramount Transactions and Use Tax (PARY) 0.75% 07-01-2020 Pasadena (City) City of Pasadena Transactions and Use Tax (PSGD) 0.75% 04-01-2019 Pico Rivera (City) City of Pico Rivera Transactions and Use Tax (PCRV)1 1.00% 04-01-2009 Pomona (City) City of Pomona Transactions and Use Tax (PMAG) 0.75% 04-01-2019 San Fernando (City) City of San Fernando Local Transactions and Use Tax (SNTU) 0.75% 04-01-2021 San Fernando (City) City of San Fernando Temporary Transactions and Use Tax (SNFE) 0.50% 10-01-2013 03-31-2021 San Gabriel (City) City of San Gabriel Transactions and Use Tax (SASG) 0.75% 07-01-2020 Santa Fe Springs (City) City of Santa Fe Springs 2018 Transactions and Use Tax (SFSG) 1.00% 04-01-2019 Santa Monica (City) City of Santa Monica Transactions and Use Tax (SAMG)1 1.00% 04-01-2017 June 23, 2022 Pg. 93
CDTFA-105 REV. 25 (4-22)
Tax Area District Name and Acronym Rate Effective
Date End Date
Sierra Madre (City) City of Sierra Madre Transactions and Use Tax (SEMD) 0.75% 04-01-2020 Signal Hill (City) City of Signal Hill Transactions and Use Tax (SHTU) 0.75% 04-01-2021 South El Monte (City) City of South El Monte Essential Services Protection Measure (SEME) 0.25% 04-01-2021 South El Monte (City) City of South El Monte Vital City Services Protection Transactions and Use Tax (SEMT) 0.50% 04-01-2011
South Gate (City) City of South Gate Transactions and Use Tax (SGTE)1 1.00% 10-01-2008 South Pasadena (City) City of South Pasadena Transactions and Use Tax (SPAD) 0.75% 04-01-2020 Vernon (City) City of Vernon Transactions and Use Tax (VERV) 0.75% 10-01-2020 West Hollywood (City) City of West Hollywood Transactions and Use Tax (WHTU) 0.75% 04-01-2021 Whittier (City) City of Whittier Transactions and Use Tax (WHIW) 0.75% 07-01-2020 Madera County Madera County 2006 Transportation Authority (MCTC) 0.50% 04-01-2007 Chowchilla (City) City of Chowchilla Public Safety Transactions and Use Tax (CHCS) 1.00% 04-01-2019 Madera (City) City of Madera Transactions and Use Tax (MADG) 0.50% 04-01-2017 Marin County Marin Parks/Open Space/Farmland Preservation Transactions and Use Tax (MPSF) 0.25% 04-01-2013 03-31-2022
Sonoma-Marin Area Rail Transportation Authority (SMRT) 0.25% 04-01-2009 Transportation Authority of Marin County Transactions and Use Tax (TAMC) 0.50% 04-01-2005 Corte Madera (Town) Town of Corte Madera 2018 Transactions and Use Tax (CTMG) 0.75% 10-01-2018 Fairfax (Town) Town of Fairfax Transactions and Use Tax (FAXG) 0.75% 04-01-2017 Larkspur (City) City of Larkspur Essential Transactions and Use Tax (LSGT) 0.75% 04-01-2018 Novato (City) City of Novato 2016 Transactions and Use Tax (NOTO) 0.25% 04-01-2016 San Anselmo (Town) Town of San Anselmo Transactions and Use Tax (SAGT) 0.50% 04-01-2014 San Rafael (City) City of San Rafael Emergency Preparedness and Essential Services Protection Transactions and Use Tax (SRET) 0.25% 04-01-2021 San Rafael (City) City of San Rafael Transactions and Use Tax (SREF) 0.75% 04-01-2014 Sausalito (City) City of Sausalito 2014 Transactions and Use Tax (SAUG) 0.50% 04-01-2015 Mariposa County Mariposa County Healthcare Transactions and Use Tax (MCHC) 0.50% 04-01-2005 Mendocino County Mendocino County Mental Health Treatment Act Tax (MMHT) 0.50% 04-01-2018 Mendocino Library Special Transactions and Use Tax (MLST) 0.125% 04-01-2012 Fort Bragg (City) City of Fort Bragg CV Starr Center Special Transactions and Use Tax (FBSS) 0.50% 07-01-2012 Fort Bragg (City) City of Fort Bragg Maintain City Streets Transactions and Use Tax (FBCS) 0.50% 01-01-2005 Point Arena (City) City of Point Arena Transactions and Use Tax (PARS) 0.50% 04-01-2004 Ukiah (City) City of Ukiah Transactions and Use Tax (UKGT) 0.50% 10-01-2005 Ukiah (City) City of Ukiah Transactions and Use Tax (UKHG) 0.50% 04-01-2017 Willits (City) City of Willits Emergency Funding Transactions and Use Tax (WCET) 0.75% 04-01-2021 Willits (City) City of Willits Transactions and Use Tax (WCRS) 0.50% 10-01-2003 Merced County Merced County Transportation Authority (META) 0.50% 04-01-2017 Atwater (City) City of Atwater Public Safety Transactions and Use Tax (ATWS) 0.50% 07-01-2013 Gustine (City) City of Gustine Community Enhancement to Services Transactions and Use Tax (GSTG) 0.50% 04-01-2010
June 23, 2022 Pg. 94
CDTFA-105 REV. 25 (4-22)
Tax Area District Name and Acronym Rate Effective
Date End Date
Los Banos (City) City of Los Banos Essential City Services Transactions and Use Tax (LSBS) 0.50% 04-01-2019 Los Banos (City) City of Los Banos Public Safety Transactions and Use Tax (LBPS) 0.50% 04-01-2005 Merced (City) City of Merced Transactions and Use Tax (MRCD) 0.50% 04-01-2006 Mono County
Mammoth Lakes (Town) Town of Mammoth Lakes Parks, Recreation and Trails Transactions and Use Tax (MLPR) 0.50% 10-01-2008
Monterey County Monterey-Salinas MST Special Transit District (MSTD) 0.125% 04-01-2015 Monterey Transportation Safety Transactions and Use Tax (MTSF) 0.375% 04-01-2017 Carmel-by-the-Sea (City) City of Carmel-by-the-Sea 2020 Transactions and Use Tax (CARC) 1.50% 07-01-2020 Carmel-by-the-Sea (City) City of Carmel-by-the-Sea Transactions and Use Tax (CBSG) 1.00% 04-01-2013 06-30-2020 Del Rey Oaks (City) City of Del Rey Oaks General Transactions and Use Tax (DROG) 0.50% 04-01-2015 Del Rey Oaks (City) City of Del Rey Oaks Transactions and Use Tax (DLRY) 1.00% 04-01-2007 Gonzales (City) City of Gonzales Quality of Life Transactions and Use Tax (GZGT) 0.50% 04-01-2015 03-31-2021 Gonzales (City) City of Gonzales Transactions and Use Tax (GZTU) 1.00% 04-01-2021 Greenfield (City) City of Greenfield 2015 City Services Transactions and Use Tax (GRFD) 0.75% 04-01-2016 Greenfield (City) City of Greenfield Transactions and Use Tax (GFGT) 1.00% 10-01-2012 King City (City) City of King City General Transactions and Use Tax (KNGG) 1.00% 04-01-2019 Marina (City) City of Marina New Transactions and Use Tax (MRGT) 1.50% 04-01-2019 Monterey (City) City of Monterey 2020 Transactions and Use Tax (MONG) 0.50% 07-01-2020 Monterey (City) City of Monterey Special Transactions and Use Tax (MTRS) 1.00% 04-01-2015 Pacific Grove (City) City of Pacific Grove Transactions and Use Tax (PGRV) 1.00% 10-01-2008 Salinas (City) City of Salinas Measure G Transactions and Use Tax (SLGT) 1.00% 04-01-2015 Salinas (City) City of Salinas Temporary Transactions and Use Tax (SLNS) 0.50% 04-01-2006 Sand City (City) City of Sand City 2015 Spec Purpose Transactions and Use Tax (SANG) 1.00% 04-01-2015 Seaside (City) City of Seaside 2017 Transactions and Use Tax (SEDG) 0.50% 10-01-2017 Seaside (City) City of Seaside Transactions and Use Tax (SEAS) 1.00% 07-01-2008 Soledad (City) City of Soledad General Services Transactions and Use Tax (STST) 0.50% 04-01-2021 Soledad (City) City of Soledad Temporary Emergency Transactions and Use Tax (STEG) 1.00% 10-01-2012 Napa County Napa Valley Transportation Authority (NVTA) 0.50% 07-01-2018 St. Helena (City) City of St. Helena Transactions and Use Tax (SHGT) 0.50% 04-01-2017 Nevada County Nevada County Public Library Transactions and Use Tax (NEVL) 0.25% 04-01-2017 Grass Valley (City) City of Grass Valley 2018 Transactions and Use Tax (GRVG) 1.00% 10-01-2018 Nevada City (City) City of Nevada City Fire and Police Transactions and Use Tax (NVSP) 0.375% 04-01-2017 Nevada City (City) City of Nevada City Special Transactions and Use Tax (NVST) 0.50% 01-01-2022 Nevada City (City) City of Nevada City Street Improvements Transactions and Use Tax (NVSI) 0.50% 04-01-2007 12-31-2021 Truckee (Town) Town of Truckee Trails Transactions and Use Tax (TTRS) 0.25% 10-01-2014 Truckee (Town) Town of Truckee Transactions and Use Tax (TRSR) 0.50% 10-01-1998 Orange County Orange County Local Transportation Authority (OCTA) 0.50% 04-01-1991 Fountain Valley (City) City of Fountain Valley Transactions and Use Tax (FVGT) 1.00% 04-01-2017 June 23, 2022 Pg. 95
CDTFA-105 REV. 25 (4-22)
Tax Area District Name and Acronym Rate Effective
Date End Date
Garden Grove (City) City of Garden Grove 2018 Transactions and Use Tax (GGGT) 1.00% 04-01-2019 La Habra (City) City of La Habra Transactions and Use Tax (LHBR) 0.50% 04-01-2009 La Palma (City) City of La Palma Transactions and Use Tax (LAPG) 1.00% 04-01-2017 Los Alamitos (City) City of Los Alamitos Transactions and Use Tax (LATU) 1.50% 04-01-2021 Placentia (City) City of Placentia Transactions and Use Tax (PLCT) 1.00% 04-01-2019 Santa Ana (City) City of Santa Ana Transactions and Use Tax (SATA) 1.50% 04-01-2019 Seal Beach (City) City of Seal Beach Transactions and Use Tax (SEAL) 1.00% 04-01-2019 Stanton (City) City of Stanton Transactions and Use Tax (STGT) 1.00% 04-01-2015 Westminster (City) City of Westminster Transactions and Use Tax (WESG) 1.00% 04-01-2017 Placer County
Loomis (Town) Town of Loomis Transactions and Use Tax (LOOG) 0.25% 04-01-2017 Roseville (City) City of Roseville Transactions and Use Tax (ROSG) 0.50% 04-01-2019 Riverside County Riverside County Transportation Commission (RCTC) 0.50% 07-01-1989 Blythe (City) City of Blythe Transactions and Use Tax (BLYK) 1.00% 10-01-2020 Cathedral City (City) City of Cathedral City Transactions and Use Tax (CCGT) 1.00% 10-01-2010 Coachella (City) City of Coachella Transactions and Use Tax (COAC) 1.00% 04-01-2015 Corona (City) City of Corona Transactions and Use Tax (CRTU) 1.00% 07-01-2021 Hemet (City) City of Hemet Transactions and Use Tax (HMGT) 1.00% 04-01-2017 Indio (City) City of Indio Transactions and Use Tax (INGT) 1.00% 04-01-2017 La Quinta (City) City of La Quinta Transactions and Use Tax (LQUG) 1.00% 04-01-2017 Lake Elsinore (City) City of Lake Elsinore Transactions and Use Tax (LETU) 1.00% 04-01-2021 Menifee (City) City of Menifee Transactions and Use Tax (MENG) 1.00% 04-01-2017 Murrieta (City) City of Murrieta Transactions and Use Tax (MURG) 1.00% 04-01-2019 Norco (City) City of Norco Transactions and Use Tax (NOGT) 1.00% 04-01-2019 Palm Springs (City) City of Palm Springs 2018 Transactions and Use Tax (PLSS) 0.50% 04-01-2018 Palm Springs (City) City of Palm Springs Transactions and Use Tax (PSGT) 1.00% 04-01-2012 Riverside (City) City of Riverside Transactions and Use Tax (RIVG) 1.00% 04-01-2017 San Jacinto (City) City of San Jacinto Transactions and Use Tax (SJTU) 1.00% 04-01-2021 Temecula (City) City of Temecula Transactions and Use Tax (TEMG) 1.00% 04-01-2017 Wildomar (City) City of Wildomar Transactions and Use Tax (WILG) 1.00% 04-01-2019 Sacramento County Sacramento Transportation Authority (STAT) 0.50% 04-01-1989 Galt (City) City of Galt Public Safety Transactions and Use Tax (GLTS) 0.50% 04-01-2009 Isleton (City) City of Isleton Transactions and Use Tax (ISGT) 0.50% 04-01-2017 03-31-2022 Isleton (City) City of Isleton Special Transactions and Use Tax (ISLS) 0.50% 10-01-2016 09-30-2021 Isleton (City) City of Isleton General Transactions and Use Tax (ISTU) 0.50% 04-01-2022 03-31-2027 Isleton (City) City of Isleton Special Transactions and Use Tax (ISST) 0.50% 04-01-2022 03-31-2027 Rancho Cordova (City) City of Rancho Cordova Relief and Recovery 2020 Transactions and Use Tax (RHRT) 0.50% 04-01-2021
Rancho Cordova (City) City of Rancho Cordova Transactions and Use Tax (RHCG) 0.50% 04-01-2015 June 23, 2022 Pg. 96
CDTFA-105 REV. 25 (4-22)
Tax Area District Name and Acronym Rate Effective
Date End Date
Sacramento (City) City of Sacramento 2018 Transactions and Use Tax (SARG) 1.00% 04-01-2019 San Benito County San Benito County Safety Transactions and Use Tax (SBRT) 1.00% 04-01-2019 Hollister (City) City of Hollister Transactions and Use Tax (HLST) 1.00% 04-01-2008 San Juan Bautista (City) City of San Juan Bautista Transactions and Use Tax (SJBG) 0.75% 04-01-2005 San Bernardino County San Bernardino County Transportation Authority (SBER) 0.50% 04-01-1990 Barstow (City) City of Barstow Transactions and Use Tax (BARS) 1.00% 04-01-2019 Montclair (City) City of Montclair Essential Services Protection Transactions and Use Tax (MTES) 1.00% 04-01-2021 Montclair (City) City of Montclair Transactions and Use Tax (MTGR) 0.25% 04-01-2005 Redlands (City) City of Redlands Transactions and Use Tax (RLTU) 1.00% 04-01-2021 San Bernardino (City) City of San Bernardino 2020 Transactions and Use Tax (SBNT) 1.00% 04-01-2021 San Bernardino (City) City of San Bernardino Transactions and Use Tax (SBRN) 0.25% 04-01-2007 03-31-2021 Victorville (City) City of Victorville Public Safety and Essential Services Transactions and Use Tax (VCET) 1.00% 04-01-2021
Yucca Valley (Town) Town of Yucca Valley Essential Services Transactions and Use Tax (YUCG) 0.50% 04-01-2017 Yucca Valley (Town) Town of Yucca Valley Sewer Improvement and Assessment Transactions and Use Tax (YCST) 0.50% 04-01-2017
San Diego County San Diego County Regional Transportation Commission (SDTC) 0.50% 04-01-1988 Chula Vista (City) City of Chula Vista 2018 Transactions and Use Tax (CLVT) 0.50% 10-01-2018 Chula Vista (City) City of Chula Vista Temporary Transactions and Use Tax (CVGT) 0.50% 04-01-2017 Del Mar (City) City of Del Mar Transactions and Use Tax (DELG) 1.00% 04-01-2017 El Cajon (City) City of El Cajon Service Preservation Transactions and Use Tax (ECGF) 0.50% 04-01-2009 Imperial Beach (City) City of Imperial Beach Emergency Response and Vital Transactions and Use Tax (IBEU) 1.00% 04-01-2021
La Mesa (City) City of La Mesa Transactions and Use Tax (LMSA) 0.75% 04-01-2009 National City (City) City of National City Transactions and Use Tax (NCGT) 1.00% 10-01-2006 Oceanside (City) City of Oceanside Temporary Transactions and Use Tax (OTGT) 0.50% 04-01-2019 Vista (City) City of Vista Transactions and Use Tax (VSTA) 0.50% 04-01-2007 San Francisco City and
County
2020 Peninsula Corridor Joint Powers Board Retail Transactions and Use Tax (JPBF) 0.125% 07-01-2021
Bay Area Rapid Transit District (BART) 0.50% 04-01-1970 San Francisco County Public Finance Authority (SFPF) 0.25% 10-01-1993 San Francisco County Transportation Authority (SFTA) 0.50% 04-01-1990 San Joaquin County San Joaquin Transportation Authority (SJTA) 0.50% 04-01-1991 Lathrop (City) City of Lathrop Public Safety/Essentials Services Transactions and Use Tax (LTHG) 1.00% 04-01-2013 Lodi (City) City of Lodi 2018 General Transactions and Use Tax (LOGT) 0.50% 04-01-2019 Manteca (City) City of Manteca Public Safety Transactions and Use Tax (MTPS) 0.50% 04-01-2007 Stockton (City) City of Stockton Public Safety Transactions and Use Tax (SPFG) 0.25% 04-01-2005 Stockton (City) City of Stockton Special Library and Recreation Transactions and Use Tax (SSLR) 0.25% 04-01-2017 Stockton (City) City of Stockton Transactions and Use Tax (STKN) 0.75% 04-01-2014 Tracy (City) City of Tracy Transactions and Use Tax (TRCG) 0.50% 04-01-2017 June 23, 2022 Pg. 97