AGENDA
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, August 12, 2025
Closed Session: 3:00 p.m. | Open Session: 4:00 p.m.
Agendas for all City Council meetings are posted at least 72 hours prior to the meeting in the kiosk just outside of City Hall, 130 S. Second St., Chowchilla, CA 93610.
The City of Chowchilla complies with the Americans with Disabilities Act (ADA of 1990). The Council Chambers is accessible to the physically disabled. If you need special assistance, please call (559) 665- 8615, ext. 102, at least 4 days prior to a regular meeting 1 day for a special meeting.
California Levine Act Statement:
California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any Chowchilla City Council Member from participating in any action related to a license, permit, contract, or entitlement for use application if he or she receives any political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date of a final decision, from the business/board or applicant.
The Levine Act also requires a member of the Chowchilla City Council who has received such a contribution to disclose the contribution on the record of the proceeding.
CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Jeff Troost
Council Members: Waseem Ahmed, Ray Barragan, John Chavez City staff and contract employees present will be recorded in the minutes.
CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions:
PUBLIC ADDRESS – CLOSED SESSION
This time is reserved for members of the audience to address the City Council on items listed on the Closed Session agenda only. It is recommended that speakers limit their comments to no more than 3 minutes each.
CLOSED SESSION – 3:00 PM
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant Exposure to litigation pursuant to Government Code Section 54956.9 (d) (2) or (3) Number of Cases: One case.
OPEN SESSION – 4:00 PM
CLOSED SESSION REPORT:
PLEDGE OF ALLEGIANCE
INVOCATION:
City Council Meeting AGENDA August 12, 2025
PRESENTATIONS/WORKSHOP - Section 1
PUBLIC ADDRESS
This time is reserved for members of the audience to address the City Council on items of interest that are not on the agenda and that are within the subject matter jurisdiction of the Council.
It is recommended that speakers limit their comments to no more than 3 minutes each, and it is requested that no comments be made during this period on items on the Agenda. Speakers are not allowed to cede their public comment time.
Members of the public who are joining the meeting via Zoom and would like to address the Council on items on the agenda should follow the policy on page 4 of this agenda packet.
The Council is prohibited by law from taking any action on matters discussed that are not on the agenda.
No adverse conclusions should be drawn if the Council does not respond to public comment at this time.
COUNCIL AND STAFF VERBAL REPORTS – Section 2
2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
2.2 STAFF VERBAL REPORTS
CONSENT CALENDAR – Section 3
All items listed under Consent Calendar are considered to be routine and will be enacted by one motion.
For discussion of any Consent Item, it will be made a part of the Regular Agenda at the request of any member of the City Council or any person in the audience.
3.1 Approval of the July 22, 2025 Regular City Council Meeting Minutes (McClendon)
3.2 Consideration and Acceptance of the July 2025 Check Register (Williams)
3.3 Consideration and Acceptance of the Quarterly Financial Investment Report (Williams)
3.4 Second Reading and Adoption of an Ordinance Amending Chowchilla Municipal Code Section 13.05 – Backflow Prevention and Cross-Connection Control (Rogers)
3.5 Consideration and Adoption of a city Council Resolution Approving an Amendment to Joint Powers Agreement of the Central San Joaquin Valley Risk Management Authority (McClendon)
3.6 Consideration and Adoption of a City Council Resolution Approving Applications for Transportation Development Act Funds for Fiscal Year 2025/2026, and Authorizing the City Administrator or Designee to Execute and Submit Applications to the Madera County Transportation Commission (McClendon)
PUBLIC HEARINGS – Section 4
4.1 a) Consideration and Adoption of a City Council Resolution Establishing Community Facilities District No. 2025-1 (Rancho Calera) and Authorizing Related Actions; and, b) Consideration and Adoption of a City Council Resolution Determining the Necessity to Incur Bonded Indebtedness and Calling an Election for the Purpose of City Council Meeting AGENDA August 12, 2025
Submitting the Questions of the Levy of the Special Tax, the Incurrence of Bonded Indebtedness, and the Establishment of an Appropriations Limit to the Qualified Electors of City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera); and
c) Consideration and Adoption of a City Council Resolution Declaring the Results of the Special Election Held on August 12, 2025, in the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera); and
d) Introduction and First Reading of an Ordinance Levying and Apportioning Special Taxes Within City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (Pruett)
DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6
6.1 Consideration and Adoption of a City Council Resolution Approving Entering into a Cover Agreement with the California Department of Transportation (Rogers)
6.2 Consideration and Adoption of a City Council Resolution Authorizing the Chowchilla Police Department to Enter into a Contract with Peregrine (Denny)
6.3 Consideration and Adoption of a New City Slogan (Wisener)
6.4 Consideration of Potential Dog Park Locations and Request for Council Direction (Rogers)
6.5 Consideration and Direction to Form an Ad Hoc to Negotiate a Settlement with Madera County Regarding Contract No. 9006-C-2009 and the City’s Perceived Obligation to Build a 2,230 Square Foot Fire Station (Pruett)
6.6 Consideration and Approval of a Response to the 2024-2025 Madera County Grand Jury Final Report Titled Chowchilla Volunteer Fire Department (Gaumnitz)
6.7 Consideration to Appoint Voting Delegates for the League of California Cities Business Meeting at the 2025 Annual Conference in Long Beach, California (McClendon)
ANNOUNCEMENTS – Section 7
AUG 12 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
AUG 15 STARGAZING, ED RAY PICKLE BALL COURTS, 8:30PM
AUG 20 PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5PM AUG 22 COMMUNITY PARTY IN THE PARK, VETERANS PARK, 7PM
ADJOURNMENT
I, Joann McClendon, CMC, City Clerk, do hereby declare under penalty of perjury that the foregoing agenda was posted at Chowchilla City Hall, 130 S 2nd Street, Chowchilla, CA, and made available for public review on this 7th day of August, 2025 at or before 5:00 pm.
Joann McClendon, CMC, City Clerk
August 12, 2025 City Council Meeting | 3pm Closed Session | 4pm Open Session
ZOOM LOGIN INSTRUCTIONS
Use the following URL to start Zoom:
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Passcode: 185 456
To participate by phone:
Dial 1-669-444-9171
Webinar ID: 840 1927 2127
Passcode: 185 456
Staff highly recommends that participants log into Zoom 15 minutes before the meeting begins to perform an audio check and ensure they have an optimal internet connection.
Options to participate / view / listen to the meeting:
• If you wish to speak on an item using the Zoom platform on your computer/laptop or smartphone, please use the “raise hand” icon, and you will be unmuted when it is your turn to speak. Please provide your name when unmuted. You can address the Council for up to 3 minutes. • If you are calling into the meeting only (no camera/video) and wish to comment, press *9 to “raise your hand” and *6 to unmute yourself.
Item 3.1
CLICK HERE
TO RETURN TO
THE AGENDA
MINUTES
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, July 22, 2025
Closed Session: 3:00 p.m. | Open Session: 4:00 p.m.
CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Jeff Troost
Council Members: Waseem Ahmed, Ray Barragan (3:09pm), John Chavez (absent) City staff and contract employees present: City Attorney Mary Lerner, Police Chief Jeff Palmer, Public Works Director Jason Rogers, Community & Economic Development Director Jaime Quintana, Director of Recreation & Community Engagement Stacy Wisener, IT System Administrator Carlos Berrocal, City Clerk Joann McClendon, Deputy City Clerk Vanessa GalvezEscobar CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions: None.
PUBLIC ADDRESS – CLOSED SESSION
No one spoke.
CLOSED SESSION – 3:08 PM
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957 (b)(1)
Title: Police Chief
OPEN SESSION – 4:00 PM
CLOSED SESSION REPORT: No reportable action.
PLEDGE OF ALLEGIANCE
INVOCATION: Pastor Pruitt
PRESENTATIONS/WORKSHOP - Section 1
PUBLIC ADDRESS
No one spoke.
COUNCIL AND STAFF VERBAL REPORTS – Section 2
2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
Council Member Barragan attended econ dev ad hoc meeting.
City Council Meeting MINUTES July 22, 2025
Council Member Ahmed MCEDC meeting.
Mayor Smith had the opportunity to attend the Madera County Board of Supervisors meeting at the Chamber, where they honored Asterisk Talley with an awar. Mayor would like to thank Sherman Rogers for putting that together. It was a really nice event, and Asterisk is such a nice young lady. Valley Champion track team from the high school. Glad that our local talent is being celebrated at the county level. We’ll be sure to get them here as well so we can recognize and thank them on our end.
2.2 STAFF VERBAL REPORTS
Fire Chief Gaumnitz since we last met, he attended the EMC meeting – Emergency Medical Committee, which focuses on how our local EMS and hospitals are doing. They review all the important metrics and data, and while he won’t make the official announcement yet, Chief shared that we’ll soon be increasing the number of ambulances staged in town full-time. “That’s something we’ve been advocating for over the past years, so I’m really looking forward to that becoming a reality. I’ll bring more details within the month,” concluded Chief Gaumnitz.
Public Works Director Rogers reported this week attending a leadership council meeting with Self-Help Enterprises and representatives from the State Water Resources Control Board regarding the Fair Sewer Connection Project. Our engineer is currently working in the design phase, specifically focusing on the location of pipe infrastructure and utility stubs. The meeting provided important clarification and coordination related to future High-Speed Rail projects that may affect the area. We are also working on the grant closeout for the Sonoma Storm Project.
In addition, plans and specifications have been completed for the third and final phase if the Downtown Storm Drain Improvement Plan on Kings Avenue. Planning for this phase was funded by Community Development Block Grant (CDBG) funds, and we are currently preparing a CDBG construction application. Once this phase is completed, we will have finalized all three phases: Humble, Sonoma, and Kings.
Lastly Director Rogers met with MCTC (Madera County Transportation Commission) and other local agencies to discuss the Measure T renewal. The meeting focused on a draft outline of the implementing guidelines for the renewed Measure T, which will go into effect in April 2027. A public workshop to gather community input will be held on Thursday, August 14, at 6PM at the MCTC Office for anyone interested in attending and providing feedback.
Community & Economic Development Director Quintana, as far as the Community and Economic Development (CED) Department is concerned, things are running smoothly. Permits and inspections are active and ongoing, particularly within developments such as Century Communities, which many of you know as Orchard view and Maple Meadows. Progress continues at a steady pace. On a more community-based note, he is excited to share that he officially began his downtown walkabouts this week. Director Quintana had the pleasure of meeting some truly amazing members of our community. Local business owners who are passionate about what they do. All while he keeps things unbiased, He gave a quick shutout: “If you haven’t had the burger at Pedro’s, it’s definitely worth a try. I also heard their Chile Verde pizza is even better – just passing along the tip!” They also had a great meeting with Kristina Gallagher from the Madera EDC, where they discussed ideas on how best to showcase Chowchilla and promote our community. They’ve been incredibly helpful in past reporting and currently assisting us with identifying vacant properties and available commercial spaces. We’re continuing to collaborate on gathering and sharing that information.
This week, we also attended the Ad Hoc committee meeting, and it being an item on tonight’s agenda will allow for further discussion on that topic.
City Council Meeting MINUTES July 22, 2025
Lastly, our department met with prospective developer, Rossy & Grecko Stonefield, who are exploring a multi-phase housing project on Howell Avenue. The proposed development includes up to 280 residential units. We’re continuing conversations and doing everything we can to support that potential investment and growth in out community.
Director Wisener reported that the Open Swim program has remained steady since its opening, with great community attendance. In response to a recent council request and with the school’s approval, we’re happy to announce we will be extending the program by one additional week.
We truly do appreciate Chowchilla High School’s flexibility and your continued support in keeping this service available during the ongoing warm weather. We’ve had 1,768 swimmers.
Our Events in the Park are also going great. We’ve received a lot of positive feedback, especially regarding the misting stations and fans, which have been keeping everyone cool.
Luckily, we’ve had a fairly mild July so far—aside from one especially hot day, which we managed to get through just fine.
Looking ahead, we’re gearing up for the fall season. Planning is already underway for Halloween and Christmas events, and I’ve made a new contact who’s helping us work toward launching a Certified Farmers Market in October and November. This market will focus exclusively on local produce and organic farms—no craft or merchandise vendors—just a simple, quality setup for farmers to sell directly to the community.
We also have a few exciting events coming up: Stargazing Night on August 15 & Block Party on August 22
City Clerk McClendon reported on the administrative side, we’re currently working on a record destruction project in partnership with the City Clerk’s department, which will take some time. In my weekly report, I also mentioned that Caltrans will be conducting a Drug & Alcohol Program review due to our funding through the FTA. This is a standard requirement, and they’ll be visiting to review our procedures and processes. Introduced Vanessa Galvez Escobar, Deputy City Clerk, she will be learning how Council Meetings work.
Police Chief Palmer reported over the past two weeks, officers responded to 1,360 calls for service, conducted 581 proactive stops. Resulted in: 31 misdemeanor arrests, 5 felony arrests and 41 citations. Code Enforcement responded to 58 calls and took 36 enforcement actions.
Last Friday, Chief Palmer had the privilege of speaking to over 400 women in law enforcement from across the Valley at a Leadership Symposium in Clovis. It was a powerful and inspiring event.
CONSENT CALENDAR – Section 3
3.1 Approval of the July 8, 2025 Regular City Council Meeting Minutes (McClendon)
3.2 Consideration and Acceptance of the Quarterly Smart Sheets (McClendon)
3.3 Second Reading and Adoption of an Ordinance Amending Chowchilla Municipal Code Section 2.04.110 – Council Salaries, to Authorize the Mayor to Temporarily Receive Additional Compensation (Lerner)
3.4 Consideration and Acceptance of the Quarterly Fee Waiver Report (Pruett)
3.5 Consideration and Acceptance of the June 2025 Financials Report (Williams) City Council Meeting MINUTES July 22, 2025
Motion by Mayor Pro Tem Troost, Seconded by Council Member Ahmed to Approve the Consent Calendar as Presented. Motion passed by roll call vote with Council Member Chavez absent.
PUBLIC HEARINGS – Section 4
4.1 Introduction and First Reading of an Ordinance Amending Chowchilla Municipal Code Section 13.05 – Backflow Prevention and Cross-Connection Control (Rogers) Mayor Smith opened the public hearing at 4:16 p.m.
No one came forward for or against the item.
Mayor Smith closed the public hearing at 4:16 p.m.
Motion by Council Member Ahmed, Seconded by Mayor Pro Tem Troost to Accept the Introduction and Waive the First Reading of an Ordinance Amending Chowchilla Municipal Code Section 13.05 – Backflow Prevention and Cross-Connection Control. Motion passed by roll call vote with Council Member Chavez absent.
4.2 Consideration and Adoption of a City Council Resolution Confirming the Diagram and Assessments and Approving the Levy and Collection of the Annual Assessments for Landscape Maintenance and Lighting District No. 90-1 of the City of Chowchilla for Fiscal Year 2025-2026 (Rogers)
Mayor Smith opened the public hearing at 4:18 p.m.
No one came forward for or against the item.
Mayor Smith closed the public hearing at 4:18 p.m.
Motion by Mayor Pro Tem Troost, Seconded by Council Member Ahmed to Approve City Council Resolution # 56-25, Confirming the Diagram and Assessments and Approving the Levy and Collection of the Annual Assessments for Landscape Maintenance and Lighting District No. 90-1 of the City of Chowchilla for Fiscal Year 2025-2026. Motion passed by roll call vote with Council Member Chavez absent.
DEFERRED BUSINESS – Section 5
5.1 Request for Direction Regarding Continuation of Development Impact Fee Reductions or Amendment of Development Agreements with Current Fee Schedule (Quintana)
Council directed staff to not implement a new reduction, thus leaving previous reduction expired as of July 1, 2025.
NEW BUSINESS – Section 6
ANNOUNCEMENTS – Section 7
JULY 25 AUG 1 LAST DAY OF SUMMER OPEN SWIM PROGRAM, CUHS SWIMMING POOL, 12:30PM - 4PM JULY 26 MOVIES IN THE PARK, MUFASA, VETERANS PARK, AT SUNSET JULY 27 BATTLE OF THE BADGES, AT RITE AID
AUG 12 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
City Council Meeting MINUTES July 22, 2025
AUG 15 STARGAZING, ED RAY PICKLE BALL COURTS, 8:30PM
AUG 20 PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5PM AUG 22 COMMUNITY PARTY IN THE PARK, VETERANS PARK, 7PM
ADJOURNMENT
Mayr Smith adjourned the July 22, 2025 City Council meeting at 4:33 p.m.
ATTEST: APPROVED:
Joann McClendon, CMC, City Clerk Mayor Kelly Smith
REPORT TO THE CITY COUNCIL
Item 3.2
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: August 12, 2025
AGENDA SECTION: Consent
SUBJECT: Information Regarding Monthly Invoice Payments PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: Check list report
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Informational only. The invoices paid are shown in the attached listing of invoices.
BACKGROUND:
Presented this evening is a list of invoices paid in July 2025.
REASON FOR RECOMMENDATION:
Informational item only.
FISCAL IMPACT:
Each item shown on the invoice list includes a description of that item and the amount of the invoice.
ALTERNATIVES:
Not applicable.
ACTIONS FOLLOWING APPROVAL:
None.
8/1/2025 3:52:56 PM Page 1 of 5
Bank Transaction Report
Chowchilla, CA Transaction Detail
Issued Date Range: 07/01/2025 - 07/31/2025
Cleared Date Range: -
Cleared
Date Number Description Module Status Type Amount
Issued
Date
Bank Account: 200650906 - General Tricounties Bank
07/01/2025 69827 Guadalupe Andrade Utility Billing Outstanding Check -18.01 07/01/2025 69828 CA State Disbursement Unit Accounts Payable Outstanding Check -3,036.31 07/01/2025 69829 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -1,118.00 07/01/2025 69830 Void Check Accounts Payable Voided Check 0.00 07/01/2025 69831 Chowchilla Employees Assn. Accounts Payable Outstanding Check -240.00 07/01/2025 69832 Chowchilla Mid-Management Accounts Payable Outstanding Check -132.00 07/01/2025 69833 Chowchilla Office Accounts Payable Outstanding Check -134.00 07/01/2025 69834 Fitness Peak Accounts Payable Outstanding Check -70.00 07/01/2025 69835 Madera County Sheriff Civil Division Accounts Payable Outstanding Check -67.48 07/01/2025 69836 U.S. Bank (PARS) Accounts Payable Outstanding Check -93.84 07/02/2025 69837 De Lage Landen Financial Services Inc. Accounts Payable Outstanding Check -7,039.79 07/09/2025 69838 Division of State Architect Accounts Payable Outstanding Check -28.80 07/10/2025 69839 A & R Refrigeration Inc. Accounts Payable Outstanding Check -12,750.00 07/16/2025 69840 Chowchilla Volunteer Fire Department, Inc. Accounts Payable Outstanding Check -115,000.00 07/16/2025 69841 Enterprise Fleet Management, Inc Accounts Payable Outstanding Check -15,077.42 07/16/2025 69842 Toshiba Financial Services Accounts Payable Outstanding Check -2,652.92 07/17/2025 69843 Airespring Inc Accounts Payable Outstanding Check -467.03 07/17/2025 69844 AT & T Accounts Payable Outstanding Check -106.29 07/17/2025 69845 AT & T CALNET Accounts Payable Outstanding Check -725.25 07/17/2025 69846 Big Creek Lumber Company Accounts Payable Outstanding Check -973.93 07/17/2025 69847 BlueTriton Brands Inc Accounts Payable Outstanding Check -46.94 07/17/2025 69848 Causey Public Finance, LLC Accounts Payable Outstanding Check -2,000.00 07/17/2025 69849 CivicPlus, LLC Accounts Payable Outstanding Check -4,802.16 07/17/2025 69850 ClearGov Inc. Accounts Payable Outstanding Check -16,160.00 07/17/2025 69851 Crazy Ant Pest Control Inc Accounts Payable Outstanding Check -45.00 07/17/2025 69852 DATCO Services Coporation Accounts Payable Outstanding Check -65.70 07/17/2025 69853 Department of Justice/Acc B/A Accounts Payable Outstanding Check -210.00 07/17/2025 69854 Ewing Irrigation Products Inc. Accounts Payable Outstanding Check -229.05 07/17/2025 69855 Farmers Hardware Accounts Payable Outstanding Check -208.67 07/17/2025 69856 FinQuery, LLC Accounts Payable Outstanding Check -5,508.00 07/17/2025 69857 Fresno City College Accounts Payable Outstanding Check -1,856.00 07/17/2025 69858 Golden Valley Door & Millwork Accounts Payable Outstanding Check -2,918.94 07/17/2025 69859 Grover Landscape Services Inc. Accounts Payable Outstanding Check -6,020.00 07/17/2025 69860 Interstate Battery of Fresno Accounts Payable Outstanding Check -670.07 07/17/2025 69861 JMP Office Technologies Accounts Payable Outstanding Check -55.82 07/17/2025 69862 Madera Tribune Accounts Payable Outstanding Check -2,099.50 Bank Transaction Report Issued Date Range: -
8/1/2025 3:52:56 PM Page 2 of 5
Cleared
Date Number Description Module Status Type Amount
Issued
Date
07/17/2025 69863 Michael Baker International Inc. Accounts Payable Outstanding Check -5,598.50 07/17/2025 69864 Mid Valley Disposal Inc. Accounts Payable Outstanding Check -3,130.09 07/17/2025 69865 NBS Accounts Payable Outstanding Check -7,346.66 07/17/2025 69866 ODP Business Solutions, LLC Accounts Payable Outstanding Check -213.52 07/17/2025 69867 O'Reilly Auto Parts Accounts Payable Outstanding Check -408.21 07/17/2025 69868 Pacific Plan Review Inc Accounts Payable Outstanding Check -42,650.48 07/17/2025 69869 Phoenix Group Information Systems Accounts Payable Outstanding Check -585.20 07/17/2025 69870 Power Business Technology LLC Accounts Payable Outstanding Check -126.80 07/17/2025 69871 Prudential Overall Supply Accounts Payable Outstanding Check -258.88 07/17/2025 69872 Quad Knopf, Inc. Accounts Payable Outstanding Check -101,932.44 07/17/2025 69873 Quadient Finance USA, Inc. Accounts Payable Outstanding Check -3,000.00 07/17/2025 69874 Rain for Rent Accounts Payable Outstanding Check -4,183.64 07/17/2025 69875 Rick Manuel Medeiros Accounts Payable Outstanding Check -600.00 07/17/2025 69876 San Diego Police Equipment Company Inc Accounts Payable Outstanding Check -674.57 07/17/2025 69877 Self Help Enterprises Accounts Payable Outstanding Check -929.38 07/17/2025 69878 Southern Tire Mart LLC Accounts Payable Outstanding Check -1,282.07 07/17/2025 69879 Stacy Wisener Accounts Payable Outstanding Check -103.27 07/17/2025 69880 Stericycle, Inc. Accounts Payable Outstanding Check -162.06 07/17/2025 69881 Superior Pool Products, LLC Accounts Payable Outstanding Check -1,763.80 07/17/2025 69882 T-Mobile USA Inc Accounts Payable Outstanding Check -346.85 07/17/2025 69883 US BANK (CAL-CARD) Accounts Payable Outstanding Check -5,567.96 07/17/2025 69884 Van De Pol Petroleum Accounts Payable Outstanding Check -8,516.55 07/17/2025 69885 Zoom Imaging Solutions, Inc. Accounts Payable Outstanding Check -133.34 07/17/2025 69886 CA State Disbursement Unit Accounts Payable Outstanding Check -263.53 07/17/2025 69887 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -1,118.00 07/17/2025 69888 Void Check Accounts Payable Voided Check 0.00 07/17/2025 69889 Chowchilla Employees Assn. Accounts Payable Outstanding Check -264.00 07/17/2025 69890 Chowchilla Mid-Management Accounts Payable Outstanding Check -132.00 07/17/2025 69891 Chowchilla Office Accounts Payable Outstanding Check -134.00 07/17/2025 69892 Fitness Peak Accounts Payable Outstanding Check -70.00 07/17/2025 69893 U.S. Bank (PARS) Accounts Payable Outstanding Check -224.46 07/23/2025 69894 CA State Disbursement Unit Accounts Payable Outstanding Check -263.53 07/23/2025 69895 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -1,118.00 07/23/2025 69896 Void Check Accounts Payable Voided Check 0.00 07/23/2025 69897 Chowchilla Employees Assn. Accounts Payable Outstanding Check -264.00 07/23/2025 69898 Chowchilla Mid-Management Accounts Payable Outstanding Check -132.00 07/23/2025 69899 Chowchilla Office Accounts Payable Outstanding Check -134.00 07/23/2025 69900 Fitness Peak Accounts Payable Outstanding Check -70.00 07/23/2025 69901 Franchise Tax Board- Tax Accounts Payable Outstanding Check -250.00 07/23/2025 69902 U.S. Bank (PARS) Accounts Payable Outstanding Check -235.46 07/30/2025 69903 AFLAC Accounts Payable Outstanding Check -792.88 07/30/2025 69904 Alert-O-Lite Inc. Accounts Payable Outstanding Check -579.65 07/30/2025 69905 Alliance Construction Solutions, Inc Accounts Payable Outstanding Check -179,946.62 Bank Transaction Report Issued Date Range: -
8/1/2025 3:52:56 PM Page 3 of 5
Cleared
Date Number Description Module Status Type Amount
Issued
Date
07/30/2025 69906 American Fidelity Assurance Accounts Payable Outstanding Check -1,430.46 07/30/2025 69907 Anderson Pump Co Accounts Payable Outstanding Check -386.39 07/30/2025 69908 AT & T Accounts Payable Outstanding Check -107.36 07/30/2025 69909 Badger Meter Inc. Accounts Payable Outstanding Check -1,275.77 07/30/2025 69910 Baker Supplies and Repairs Accounts Payable Outstanding Check -565.50 07/30/2025 69911 BSK Associates Accounts Payable Outstanding Check -886.40 07/30/2025 69912 CalTraffic Signs Accounts Payable Outstanding Check -342.95 07/30/2025 69913 CDW Government, Inc. Accounts Payable Outstanding Check -383.28 07/30/2025 69914 Central Valley Concrete, Inc. Accounts Payable Outstanding Check -917.58 07/30/2025 69915 CivicPlus, LLC Accounts Payable Outstanding Check -19,619.76 07/30/2025 69916 Comcast Accounts Payable Outstanding Check -294.23 07/30/2025 69917 Dell, Inc. Accounts Payable Outstanding Check -10,484.75 07/30/2025 69918 Department of Justice/Acc Accounts Payable Outstanding Check -676.50 07/30/2025 69919 Department of Justice/Acc B/A Accounts Payable Outstanding Check -35.00 07/30/2025 69920 Department of Resources Recycling and Recovery (CalRecycle) Accounts Payable Outstanding Check -1,435.39 07/30/2025 69921 Electrical Power Systems, Inc. Accounts Payable Outstanding Check -4,730.00 07/30/2025 69922 Ewing Irrigation Products Inc. Accounts Payable Outstanding Check -196.00 07/30/2025 69923 Farmers Hardware Accounts Payable Outstanding Check -385.87 07/30/2025 69924 Void Check Accounts Payable Voided Check 0.00 07/30/2025 69925 Ferguson Enterprises, Inc. Accounts Payable Outstanding Check -2,136.23 07/30/2025 69926 Grover Landscape Services Inc. Accounts Payable Outstanding Check -54.01 07/30/2025 69927 Home Depot Credit Services Accounts Payable Outstanding Check -1,423.60 07/30/2025 69928 Void Check Accounts Payable Voided Check 0.00 07/30/2025 69929 Horizon Distributors Inc. Accounts Payable Outstanding Check -1,420.25 07/30/2025 69930 L.N. Curtis & Sons Accounts Payable Outstanding Check -21,814.58 07/30/2025 69931 Lechowicz & Tseng Municipal Consultants Accounts Payable Outstanding Check -16,082.54 07/30/2025 69932 Mace Pest Control Accounts Payable Outstanding Check -1,325.00 07/30/2025 69933 Madera County LAFCO Accounts Payable Outstanding Check -9,254.84 07/30/2025 69934 Madera Tribune Accounts Payable Outstanding Check -178.75 07/30/2025 69935 Madison Barragan Accounts Payable Outstanding Check -460.00 07/30/2025 69936 Medvetta Financial Inc. Accounts Payable Outstanding Check -194.88 07/30/2025 69937 Mid Valley Disposal Inc. Accounts Payable Outstanding Check -288,700.98 07/30/2025 69938 ODP Business Solutions, LLC Accounts Payable Outstanding Check -3,445.29 07/30/2025 69939 O'Reilly Auto Parts Accounts Payable Outstanding Check -2,250.24 07/30/2025 69940 PACE Supply Corp Accounts Payable Outstanding Check -4,084.63 07/30/2025 69941 Power Business Technology LLC Accounts Payable Outstanding Check -810.52 07/30/2025 69942 Precision Civil Engineering, Inc. Accounts Payable Outstanding Check -14,526.96 07/30/2025 69943 Prudential Overall Supply Accounts Payable Outstanding Check -366.23 07/30/2025 69944 Purl's Sheet Metal & Air Conditioning Inc. Accounts Payable Outstanding Check -1,114.94 07/30/2025 69945 Quad Knopf, Inc. Accounts Payable Outstanding Check -13,268.42 07/30/2025 69946 R & H Wholesale Supply, Inc Accounts Payable Outstanding Check -56.43 07/30/2025 69947 R & R Pool Service Accounts Payable Outstanding Check -130.00 07/30/2025 69948 Rain for Rent Accounts Payable Outstanding Check -333.68 Bank Transaction Report Issued Date Range: -
8/1/2025 3:52:56 PM Page 4 of 5
Cleared
Date Number Description Module Status Type Amount
Issued
Date
07/30/2025 69949 S & W Auto Parts Inc. Accounts Payable Outstanding Check -236.14 07/30/2025 69950 Samsara Inc. Accounts Payable Outstanding Check -379.93 07/30/2025 69951 Self Help Enterprises Accounts Payable Outstanding Check -746.70 07/30/2025 69952 Southern Tire Mart LLC Accounts Payable Outstanding Check -2,660.60 07/30/2025 69953 Specialized Utility Services Program Accounts Payable Outstanding Check -8,715.00 07/30/2025 69954 Superior Pool Products, LLC Accounts Payable Outstanding Check -3,589.17 07/30/2025 69955 Tammy Denham Accounts Payable Outstanding Check -150.00 07/30/2025 69956 Technicon Engineering Services, Inc. Accounts Payable Outstanding Check -923.00 07/30/2025 69957 Toshiba Financial Services Accounts Payable Outstanding Check -2,545.25 07/30/2025 69958 Turner's Towing Accounts Payable Outstanding Check -80.00 07/30/2025 69959 Tyler Technologies, Inc. Accounts Payable Outstanding Check -15,048.84 07/30/2025 69960 US Bank Accounts Payable Outstanding Check -3,800.00 07/30/2025 69961 US BANK (CAL-CARD) Accounts Payable Outstanding Check -4,105.82 07/30/2025 69962 US Post Office Accounts Payable Outstanding Check -370.00 07/30/2025 69963 USA BlueBook Accounts Payable Outstanding Check -128.52 07/30/2025 69964 USA North 811 Accounts Payable Outstanding Check -385.92 07/30/2025 69965 Van De Pol Petroleum Accounts Payable Outstanding Check -11,349.91 07/30/2025 69966 W.M. Lyles Co. Accounts Payable Outstanding Check -301,685.80 07/30/2025 69967 Yamabe and Horn Engineering Inc. Accounts Payable Outstanding Check -1,815.00 07/30/2025 69968 Zoom Imaging Solutions, Inc. Accounts Payable Outstanding Check -782.02 Bank Account 200650906 Total: (142) -1,365,217.13
Bank Account: 200695379 - Payroll-Tri Counties
07/11/2025 656 656 Payroll Outstanding Check -284.40
07/11/2025 07/10/2025 657 657 Payroll Cleared Check 0.00 07/11/2025 658 658 Payroll Outstanding Check -284.32
07/11/2025 659 659 Payroll Outstanding Check -554.74
07/11/2025 660 660 Payroll Outstanding Check -485.28
07/11/2025 661 661 Payroll Outstanding Check -554.74
07/11/2025 662 662 Payroll Outstanding Check -854.30
07/11/2025 663 663 Payroll Outstanding Check -284.40
07/25/2025 07/22/2025 664 664 Payroll Cleared Check 0.00 07/25/2025 665 665 Payroll Outstanding Check -570.80
07/25/2025 666 666 Payroll Outstanding Check -570.80
07/25/2025 667 667 Payroll Outstanding Check -570.80
07/25/2025 668 668 Payroll Outstanding Check -812.43
07/25/2025 669 669 Payroll Outstanding Check -2,203.85
Bank Account 200695379 Total: (14) -8,030.86
Report Total: (156) -1,373,247.99
Bank Transaction Report Issued Date Range: -
8/1/2025 3:52:56 PM Page 5 of 5
Summary
Bank Account Count Amount
200650906 General Tricounties Bank 142 -1,365,217.13
200695379 Payroll-Tri Counties 14 -8,030.86
Report Total: 156 -1,373,247.99
Cash Account Count Amount
**No Cash Account** 7 0.00
999 999-0100-0215 Cash In Bank 137 -1,365,217.13
999 999-0100-0216 Cash In Bank (Payroll) 12 -8,030.86
Report Total: 156 -1,373,247.99
Transaction Type Count Amount
Check 156 -1,373,247.99
Report Total: 156 -1,373,247.99
REPORT TO THE CITY COUNCIL
Item 3.3
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: August 12, 2025
AGENDA SECTION: Consent
SUBJECT: Presentation of Quarterly Financial Investment Report PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: LAIF report, Chowchilla Quarterly Report
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Review the Quarterly Financial Investment Report.
BACKGROUND:
In accordance with Section 53601 of the California Government Code and the City’s Investment policy, the City is authorized to invest in Certificates of Deposit, the California Local Agency Investment Fund (LAIF).
In addition to LAIF, the City began investing in Treasury Securities in December 2022 after City Council approval as they typically yield higher interest than LAIF and allows the City to have some diversity in its portfolio. The Treasury securities purchased by the City amounted to $15M. Each time a Treasury security in the portfolio matures, the City will be paid the ‘maturity value’ or ‘face value’ of that security. If such security was purchased at a discount and then held to maturity, then the difference between the discounted principal cost of the security and the face value of the security represents ‘income’ to the City, similar to interest earnings. The City is using Wulff, Hansen & Co. as our Municipal Advisor to oversee the portfolio.
The City also began investing in a Money Market account with Tri Counties Bank, as they guaranteed a higher interest that LAIF. This allows the City to have even more diversity then before.
FISCAL IMPACT:
The US Treasury Securities Custodial Account has a fair market value of $12,140,319 and for the last quarter recognized $129,883 in investment earnings, which includes accrued interest and amortized discount. Accrued interest is interest that has been earned but not yet paid. During the period from April 1, 2025 through June 30, 2025, the City earned accrued interest of $78,649. Amortized discount represents that portion of any discount that has been earned, but not yet paid. As of June 30, 2025, the portfolio’s amortized discount was $51,234.
As of June 30, 2025, the City has $19,271,200 in LAIF and for the last quarter received $189,624 in interest.
Interest is allocated to all funds that have a positive cash balance.
As of June 30, 2025, the City has $7,944,977 in Tri Counties Money Market and for the last quarter received $89,119 in interest. Interest is allocated to all funds that have a positive cash balance.
MALIA M. COHEN
California State Controller
LOCAL AGENCY INVESTMENT FUND
REMITTANCE ADVICE
Agency Name CHOWCHILLA
Account Number 98-20-153
As of 7/15/2025, your Local Agency Investment Fund account has been directly credited with the interest earned on your deposits for the quarter ending 6/30/2025.
Earnings Ratio 0.00012059828906715
Interest Rate 4.40%
Dollar Day Total $ 1,572,361,043.66
Quarter End Principal Balance $ 19,081,575.96
Quarterly Interest Earned $ 189,624.05
To Rod Pruett and Kerri Williams, City of Chowchilla
From Bud Levine and Rob Pankratz, Wulff, Hansen & Co.
Date July 21, 2025
Subject Quarterly Portfolio Earnings: April 1, 2025 through June 30, 2025 During the period from April 1, 2025 through June 30, 2025, the City held the following U.S.
Treasury securities in its portfolio during all or a portion of the period:
All dollar amounts are rounded to the nearest dollar.
* Accrued interest paid by City to Winning Bidder.
Quarterly Book Earnings
During the period from April 1, 2025 through June 30, 2025, the City’s portfolio of U.S.
Treasury securities had book earnings of $129,883 which is equivalent to an annualized book yield of 4.37%. By comparison, during the same period the average daily yield paid on deposits in the Local Agency Investment Fund (LAIF) was 4.27%.
Quarterly book earnings of $129,883 included the following:
• $78,649 of interest earnings, plus
• $51,234 of accreted discount less any amortized premium.
CUSIP
Number
Purchase
Date
Face
Value
Coupon
Rate
Price
Discount (+)
Premium (-)
Principal
Cost
Accrued
Interest*
Total
Cost
Final
Maturity
Yield to
Maturity
912828ZW3 Jul. 1, 2024 2,747,000 0.250% 95.371 127,156 2,619,844 19 2,619,863 Jun. 30, 2025 5.07% 912828ZW3 Sep. 30, 2024 3,390,000 0.250% 97.245 93,395 3,296,606 2,119 3,298,724 Jun. 30, 2025 4.02% 91282CJB8 Mar. 31, 2025 5,977,000 5.000% 100.382 -22,832 5,999,832 0 5,999,832 Sep. 30, 2025 4.22% 912797QW0 Jun. 30, 2025 3,111,000 - 98.93 33,288 3,077,712 0 3,077,712 Sep. 30, 2025 4.29% 91282CJS1 Jun. 30, 2025 3,076,000 4.250% 100.02 -601 3,076,601 0 3,076,601 Dec. 31, 2025 4.21% Fees
The book earnings shown above do not take into account any fees that were incurred by the City for services provided by the Municipal Advisor, Bidding Agent / Registered Investment Advisor or Custodian Bank. The total of such fees incurred by the City during the period equaled approximately $5,125.
Next Steps
The City does not need to take any further action at this time. This report is informational only.
The next scheduled maturity of Treasury securities in the City’s portfolio will occur on September 30, 2025. Prior to the maturity of each Treasury security in the City’s portfolio, the Wulff Hansen team will assist the City in evaluating its expected cash flow requirements and liquidity needs, and its potential reinvestment options.
Meanwhile, all of the Treasury securities in the City’s portfolio are held in trust for the City by its Custodian Bank. The scheduled payment of interest and principal on each security will be automatically credited to the City’s custody account upon receipt, and the City will continue to receive monthly account statements from the Custodian Bank.
Invest Additional Funds
Depending on the City’s cash balances and its expected future cash flow requirements and liquidity needs, the City may wish to consider investing additional funds in one or more U.S.
Treasury securities, in order to earn additional interest income. If so, the Wulff Hansen team can help arrange for any such additional investment. Please note however that such additional investment would incur additional compensation to Municipal Advisor, based on its current fee schedule, and therefore Municipal Advisor would have an incentive to recommend such an additional investment. For your reference, the current U.S. Treasury yield curve is as follows:
*LAIF rate as of April 16, 2025
Liquidate Securities
If the City ever needs immediate access to some or all of its invested funds due to a large unanticipated financial obligation or emergency situation, then the Wulff Hansen team can help arrange for the prompt liquidation of one or more Treasury securities in the City’s portfolio.
The market value of the City’s portfolio – as opposed to its face value – typically fluctuates over time as interest rates change. According to the most recent monthly custody account statement, the estimated market value of the Treasury securities in the City’s portfolio on June 30, 2025 was $12,140,319.29, excluding any funds held in the City’s designated cash sweep account.
4.26% 4.33% 4.26% 4.17% 4.07% 4.04% 3.99% 3.93% 3.87%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
LAIF* 3-Month 6-Month 9-Month 12-Month 15-Month 18-Month 21-Month 24-Month Estimated U.S. Treasury Yield Curve as of July 18, 2025 (Data Sources: Tullett Prebon via Wall Street Journal, Treasury.gov, and California State Treasurer's Office)
REPORT TO THE CITY COUNCIL
Item 3.4
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: August 12, 2025
AGENDA SECTION: Consent
SUBJECT: Option to Waive the Second Reading and Adoption of an Ordinance of the City Council of the City of Chowchilla, in the County of Madera, California, Amending Chapter 13.05 of the Chowchilla Municipal Code Pertaining to Backflow Prevention and Cross-Connection Control
PREPARED BY: Mike Breashears, Water System Supervisor
APPROVED BY: Jason Rogers, Director of Public Works
ATTACHMENTS: Revised Chapter 13.05
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That the City Council waive the second reading and adopt an ordinance amending Chapter 13.05 of the Chowchilla Municipal Code pertaining to Backflow Prevention and Cross-Connection Control to ensure compliance with the State’s Cross-Connection Control Policy Handbook (CCCPH).
BACKGROUND:
The State Water Resources Control Board (State) provides regulations (previously Title 17 California Code of Regulations) for water agencies to implement a cross-connection control program. These regulations specify when backflow protection is required, approved backflow prevention assemblies, installation, and testing requirements.
The Cross-Connection Control Policy Handbook (CCCPH) now replaces Title 17 CCR and sets updated standards for water systems to ensure potable water remains free of contamination. The City’s Municipal Code Chapter 13.05 requires revision to align with CCCPH requirements.
REASON FOR RECOMMENDATION:
Chapter 13.05 of the City’s Municipal Code is outdated and requires updates to maintain compliance with CCCPH and ensure public health protection through a modernized backflow prevention and crossconnection control program.
The CCCPH establishes new criteria for determining backflow protection requirements, including more rigorous testing and certification standards, and expands on responsibilities for water purveyors and customers. Updating the ordinance ensures the City’s water system is adequately protected from potential contamination, minimizes legal and regulatory risks, and aligns with best practices statewide. This revision also clarifies roles and responsibilities for customers and City staff, improves enforcement procedures, and supports efficient implementation of the Cross-Connection Control Program.
FISCAL IMPACT:
There is no fiscal impact to the General Fund. All expenses related to the City’s Cross-Connection Control Program are allocated within the Water Fund and are budgeted annually. No unanticipated financial impacts are expected.
ALTERNATIVES:
Decline to adopt the proposed ordinance, resulting in the City’s Municipal Code remaining inconsistent with CCCPH requirements.
ACTIONS FOLLOWING APPROVAL:
The updated ordinance will go into effect 30 days after adoption.
Chapter 13.05 - BACKFLOW PREVENTION AND CROSS-CONNECTION CONTROL
13.05.010 Definitions.
[The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:] "Air-gap separation (AG)" is a physical break between the supply line and a receiving vessel. This is the maximum backflow protection.
"Approved backflow prevention assembly" is an assembly that has been manufactured in full conformance with the standards established by the American Water Works Association and has met completely the laboratory and field performance standard of the University of Southern California's Foundation for Cross-Connection Control and Hydraulic Research. Approved assemblies are included in the foundation's most current edition of the List of Approved Backflow Prevention Assemblies. "Approved backflow prevention tester" is a backflow tester that possesses valid certification with the California-Nevada section of the American Water Works Association or equivalent certification as determined by the director. Additional requirements, such as oral and written tests, may be required prior to being placed on the approved tester list.
"Auxiliary water supply" is any water supply other than that received from the water system. "Backflow" is the reverse flow of water, or any other fluid or substance or any combination or any mixture thereof, from the customer's system into the water system's distribution system. "Backflow prevention assembly" is an assembly which will protect the water system's distribution system from backflow, back siphonage, or back pressure.
"City" is the city of Chowchilla.
"Cross-connection" is an unprotected actual or potential connection between the water system and any source or system containing unapproved water or a substance that is not or cannot be approved as safe, wholesome, and potable. Bypass arrangements, jumper connections, removable sections, swivel or changeover devices, or other devices through which backflow could occur, shall be considered to be cross-connections.
"Cross-connection control specialist" is a person certified by the California-Nevada Section of the American Water Works Association, or equivalent certification as determined by the director. "Cross-connection survey" is an on-site survey performed by a cross-connection control specialist to determine the degree of potential health hazards onsite that may require installation of a backflow prevention assembly.
"Customer" is any person or organization who receives water from the water system. "Customer's water system" is the water piping system located on the customer's property. "Director" is the city of Chowchilla Public Works Director, or authorized representative. "Double check detector check valve assembly (DCDA)" is a double check valve assembly with a bypass containing a water meter. The meter shall register for only very low rates and is used to show unauthorized usage or leaks in the customer's system.
"Pressure vacuum breaker assembly (PVB)" is an assembly that contains one or two independently operated spring-loaded check valves and an independently operated spring-loaded air inlet valve located on the discharge side of the check(s). It also includes two tightly closing shutoff valves on each side of the check valve(s) and properly located resilient-seated test cocks. "Reduced pressure principle assembly (RP)" is an assembly of no less than two check valves, an automatically operated differential relief valve located between the two check valves, a tightly closing shutoff valve on each side of the check valve assembly, and test cocks available for testing the water tightness of each check valve.
"Reduced pressure principle detector check valve assembly (RPDA)" is a reduced pressure principle assembly with a bypass containing a water meter. The meter shall register for only very low rates and is used to show unauthorized usage or leaks in the customer's system. "Service connection" is the point of connection of a customer's system to the water system, usually considered immediately downstream from a meter when the meter is located on the customer's property as near as possible to the public right-of way.
"Water system" is the city of Chowchilla Municipal Water System. (Ord. No. 494-19, § 1, 2-12-2019)
13.05.20 - Purpose.
The purpose of this chapter is:
1. To protect the water system from the possibility of contamination or pollution by isolating within the customer's internal distribution system(s) or the customer's private water system(s) such contaminants or pollutants which could backflow into the public water systems; and
2. To promote the elimination or control of existing cross-connections, actual or potential, between the consumer's in-plant potable water system(s) and non-potable water system(s), plumbing fixtures and industrial piping systems; and,
3. To provide for the maintenance of a continuing cross-connection control program that will systematically and effectively prevent the contamination or pollution of all potable water systems.
(Ord. No. 494-19, § 1, 2-12-2019)
13.05.030 Responsibility.
The director has the authority and responsibility to implement an effective cross-connection control program and for the enforcement of the provisions of this chapter. The city may partner with another agency (e.g. health agency, private firm) to ensure that at least one person trained in cross-connection control is able to implement all or portions of the cross-connection program described below. The CrossConnection Control Program shall use the regulations of this ordinance, Cross-Connection Control Policy Handbook, California Code of Regulations and the current California Plumbing Code. (Ord. No. 494-19, § 1, 2-12-2019)
13.05.040 General requirements.
A. Backflow prevention assemblies may be required per Sections 13.05.050 and 13.05.100.
B. Backflow prevention assemblies must be approved by the University of Southern California's Foundation for Cross-Connection Control.
C. The backflow prevention assemblies are owned and maintained by the customer.
D. The customer shall install required backflow prevention assemblies in accordance with city and state of California requirements.
E. The customer is responsible for testing of backflow prevention assemblies, and any required repair or replacement.
F. The customer shall permit the city to enter customer's premise within the normal working hours of the city, or in case of emergency, at any time, to test or inspect the backflow prevention assembly.
G. The customer is responsible for obtaining the proper permits to install or replace a backflow prevention assembly.
H. Backflow prevention assemblies shall be installed on each service connection to a customer's water system as close as practical at or near the property line, and in all cases, before the customer's first branch line leading off the service line.
I. Premises with multiple service connections, where at least one service connection has backflow protection, shall have backflow protection installed on each service connection. (Ord. No. 494-19, § 1, 2-12-2019)
13.05.050 Type of backflow protection required.
Backflow prevention assemblies shall be required for premises in the following described categories:
1. Residential service connections with fire sprinklers (two dwellings or less) shall have an RP. An RP shall not be required if the residential fire sprinkler system is designed and installed using potable water piping and materials, and has connections to points of regular water use to prevent degradation of water quality.
2. Residential service connections (more than three dwellings) shall have an RP.
3. Commercial, industrial, and irrigation service connections shall have an RP.
4. Fire service connections shall have, at a minimum, a DCDA. The city may require a RPDA depending on the degree of hazard.
5. Irrigation service connections for landscape median strips shall have, at a minimum, a PVB.
6. Premises that have multiple users sharing one meter shall have an RP due to the risk of occupancy change without notification to the utility.
(Ord. No. 494-19, § 1, 2-12-2019)
13.05.060 Installation.
Backflow prevention assemblies installed for the purpose of eliminating a potential cross- connection shall be installed with all applicable city permits, in accordance with city standards, and at a location approved by the director.
1. New Service Connections. At the time an application for a new water service is made by a potential customer, in accordance with procedures established by the director, the city will review the application to determine the type of backflow protection required on the customer's service connection. It shall be the customer's responsibility at the customer's expense to install the backflow prevention assembly in accordance with city standards and at a location approved by the director. Installation and testing of a backflow prevention assembly shall be a condition of meter installation and water service. If a customer fails to install and test the backflow prevention assembly within a reasonable time limit set forth in a written notification to the customer, the city may suspend water service to the premises.
2. Upgrading Existing Backflow Prevention Assemblies. An existing backflow prevention assembly which, in the opinion of the director, is a type that does not provide adequate protection for the degree of potential hazard from backflow shall be upgraded at the customer's expense. It shall be the customer's responsibility at the customer's expense to upgrade the backflow prevention assembly in accordance with city standards and at a location approved by the director. Upgrading may include complete replacement and relocation of the backflow prevention assembly, installation of additional backflow prevention assemblies, and/or correction of any on-site crossconnection hazards. If a customer fails to install and test the upgraded backflow prevention assembly within a reasonable time limit set forth in a written notification to the customer, the city may suspend water service to the premises.
(Ord. No. 494-19, § 1, 2-12-2019)
13.05.070 Testing.
A. Approved backflow prevention assemblies shall be tested by an approved backflow prevention tester.
B. Approved backflow prevention assemblies shall be tested immediately after installation, relocation, repair or after winterization.
C. Backflow prevention assemblies shall be tested at least annually, or more frequently if determined to be necessary by the director. The city shall notify customers when annual testing is required, and the notice shall contain the date when the test must be completed and test results submitted.
D. If a customer does not test their backflow prevention assembly and their assembly is out of compliance with the annual test requirement, the city reserves the right to have the assembly tested by city personnel and charge the customer accordingly. Charges shall consist of a penalty fee, and an inspection and testing fee. The testing fees shall be set from time to time by the city council based on the size and type of assembly. The city shall notify the customer of any test failures.
E. Backflow prevention assemblies that fail to pass testing shall be repaired and retested immediately.
F. All test reports shall be filed with the director within ten days of the test being performed.
G. For assemblies that fail to pass inspection and testing, the city reserves the right to require more frequent testing or to perform additional testing by city personnel when the city determines it to be in the public interest. Customer shall bear the cost of additional tests. (Ord. No. 494-19, § 1, 2-12-2019)
13.05.080 Maintenance and repair.
A. Backflow prevention assemblies shall be tested immediately after relocation or repair, and not be placed in service unless the assembly is functioning as required.
B. The customer shall at all times maintain the backflow prevention assembly in proper working order and provide for unobstructed access by the city to the assembly as a condition of continued water service.
C. All repair and retest reports shall be filed with the director within ten days of the repair and retest being performed.
D. Backflow prevention assemblies shall not be removed or replaced without approval by the City.
E. Failure by customer to repair a backflow prevention assembly or failure to submit a completed test form with the time period allowed by the city shall result in termination of water service.
13.05.090 Existing service connections without backflow protection.
The city may perform cross-connection surveys to evaluate the degree of potential health hazard to the public water supply based on conditions existing on a customer's premises. Special consideration shall be given to premises of the following types of water users:
1. Premises having an auxiliary water supply.
2. Premises where there is a substance that would be objectionable but not hazardous to health, if introduced into the water system.
3. Premises where there is any material dangerous to health, which is handled in such a fashion as to create an actual or potential hazard to the water system.
4. Premises where substances harmful to health are handled under pressure in a manner which could permit possible entry into the water system. This includes chemical or biological process waters and water from the water system which has deteriorated in sanitary quality.
5. Premises where there are unprotected cross-connections, either actual or potential, that could result in the pollution or contamination of the water system.
6. Premises where, because of security requirements or other prohibitions or restrictions, it is impossible or impractical to make a complete in-plant cross-connection survey.
7. Premises where recycled water is used.
(Ord. No. 494-19, § 1, 2-12-2019)
13.05.100 Cross-connection surveys.
A. Cross-connection surveys shall, at a minimum, consider the existence of cross-connections, the nature of materials handled on the premises, the probability of backflow occurring, the degree of piping complexity, and the potential for piping system modification.
B. The city may, from time to time, inspect the premises of existing service connections that, in the opinion of the director, may require backflow protection.
C. The customer, or representative who is knowledgeable about onsite activities, shall accompany the cross-connection control specialist during the survey to answer any questions that may arise.
D. If it is determined that a backflow prevention assembly is required, such determination by the city shall be final, and the installation of a backflow prevention assembly shall be a condition of continued water service.
E. The city shall notify the customer in writing if a backflow prevention assembly must be installed.
The notice shall contain the date when the installation must be completed and test results submitted.
F. Failure by customer to install a backflow prevention assembly or failure to submit a completed test form with the time period allowed by the city shall result in termination of water service.
G. Failure by customer to allow the city access to customer's premises to perform the crossconnection survey shall result in termination of water service. (Ord. No. 494-19, § 1, 2-12-2019)
13.05.110 Penalties.
A. For each backflow protection assembly that is out of compliance with the annual test requirement and tested by city personnel, the city shall charge the customer a penalty fee equivalent to the cost of one hour of water maintenance worker full cost recovery staff time per the current finance user fee study.
B. The city may terminate water service to any premises served with or without notice if a required backflow prevention assembly is removed or tampered with by the customer, or if the city finds evidence that an installed backflow prevention assembly has been bypassed, modified, made, or allowed to remain ineffective.
C. Any person who violates any provision of this chapter, or bypasses or renders inoperative any backflow prevention assembly, shall be subject to fines as detailed in city of Chowchilla Municipal Code Title 1, Chapter 1.10, administrative citations.
D. All costs incurred by the city for discontinuance of water service and all fees associated with reinstating water service shall be paid by the customer. (Ord. No. 494-19, § 1, 2-12-2019)
13.05.120 Water service termination.
A. When the city identifies water uses that represent a clear and immediate hazard to the potable water supply that cannot be immediately abated, the city shall institute the procedure for discontinuing the city water service.
B. Basis for Termination. Conditions or water uses that create a basis for water service termination shall include but are not limited to, the following items:
1. Refusal to install approved backflow prevention devices;
2. Refusal to test approved backflow prevention devices;
3. Refusal to repair faulty backflow prevention device;
4. Refusal to replace faulty backflow prevention device;
5. Direct or indirect connection between the public water system and a sewer line;
6. Unprotected direct or indirect connection between the public water system and a system or equipment containing contaminants;
7. Unprotected direct or indirect connection between the public water system and an auxiliary water system;
8. A situation which presents an immediate health hazard to the public water system.
C. Water Service Termination Procedures.
1. For conditions 1, 2, 3 or 4 of subsection B of this section the city will terminate service to a customer's premises after two written notices have been sent specifying the corrective action needed and the time period in which it must be done. If no action is taken within the allowed time period water service may be terminated.
2. For conditions 4, 5, 6, 7 or 8 of subsection B of this section the city will take the following steps:
a. Make reasonable effort to advise water user of intent to terminate water service; b. Terminate water supply and lock services valve. The water service will remain inactive until correction of violations has been approved by the city.
(Ord. No. 494-19, § 1, 2-12-2019)
ORDINANCE # 532-25
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA AMENDING CHAPTER 13.05 OF THE CHOWCHILLA MUNICIPAL CODE PERTAINING TO BACKFLOW
PREVENTION AND CROSS-CONNECTION CONTROL
WHEREAS, the State Water Resources Control Board provides regulations for water agencies to implement a cross-connection control programs; WHEREAS, these regulations specify when backflow protection is required, approved backflow prevention assemblies, installation, and testing requirements; WHEREAS, the Cross-Connection Control Policy Handbook has replaced Title 17 CCR and sets updated standards for water systems to ensure potable water remains free of contamination;
WHEREAS, the City’s municipal code Chapter 13.05 requires revision to align with the Cross-Connection Control Policy Handbook requirements;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHOWCHILLA DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 13.05.030 (“Responsibility”) of Chapter 13.05 (“Backflow Prevention and Cross-Connection Control”) of Title 2 (“Public Services”) of the City Municipal Code is hereby amended to read as follows:
“13.05.030 Responsibility.
The director has the authority and responsibility to implement an effective cross-connection control program and for the enforcement of the provisions of this chapter. The city may partner with another agency (e.g. health agency, private firm) to ensure that at least one person trained in cross-connection control is able to implement all or portions of the cross-connection program described below. The Cross-Connection Control Program shall use the regulations of this ordinance, Cross-Connection Control Policy Handbook, California Code of Regulations and the current California Plumbing Code.
13.05.070 Testing.
B. Approved backflow prevention assemblies shall be tested immediately after installation, relocation, repair or after winterization.
13.05.070 Testing.
B. Approved backflow prevention assemblies shall be tested immediately after installation, relocation, repair or after winterization.
13.05.080 Maintenance and repair.
D. Backflow prevention assemblies shall not be removed or replaced without approval by the City.
SECTION 2. SEVERABILITY. If any part of this Ordinance is held invalid for any reason by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of the Ordinance if such invalid portion thereof had been deleted.
SECTION 3. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days from and after its final passage.
SECTION 4. PUBLICATION. The City Clerk is hereby directed to post a summary and certified copy of this Ordinance in the City Clerk’s office at least five (5) days prior to adoption and to publish a summary of the Ordinance in the Madera Tribune, a newspaper of general circulation, within fifteen (15) days after its adoption.
INTRODUCED at a regular City Council meeting on July 22, 2025.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of August, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
REPORT TO THE CITY COUNCIL
Item 3.5
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: August 12, 2025
AGENDA SECTION: Consent
SUBJECT: Consideration and Adoption of a City Council Resolution Approving an Amendment of the Joint Powers Agreement of the Central San Joaquin Valley Risk Management Authority
PREPARED BY: Joann McClendon, City Clerk
ATTACHMENTS: Resolution, Joint Powers Agreement
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That the City Council adopts the resolution approving the amendment of the Joint Powers Agreement (JPA) of the Central San Joaquin Valley Risk Management Authority (CSJVRMA).
BACKGROUND:
The CSJVRMA is a California Joint Powers Authority created and operated pursuant to California Government Code 6500 et. seq. for the purpose of pooling funds to provide coverage for indemnification and defense and to purchase excess insurance for certain civil claims involving general liability, workers’ compensation, and property damage. The City is a member of the CSJVRMA.
REASON FOR RECOMMENDATION:
The CSJVRMA is in the process of updating its Governing Documents, the first of many is the JPA. The amendments are redlined in the attached Agreement and have been approved by the CSJVRMA’s Executive Committee. Per CSJVRMA bylaws, all amendments must be approved by the city council.
A summary of the updates are as follows:
• Definitional terms have been defined more clearly.
• Language has been broadened to give leeway in the event the CSJVRMA wants to consider creating or participating in a captive agency.
• An addition was made pursuant to Government Code Section 6509 that was not part of the law in 1994 when CSJVRMA last amended the Agreement. The change requires JPAs to designate a member whose restrictions would apply to the operations of the JPA.
According to CSJVRMA Legal Counsel, “GCS 6509 was enacted to prevent a local public entity from exercising powers inconsistent with its own charter, ordinance or resolution simply by becoming a member of JPA. JPA’s are formed to permit public entities to exercise powers on a collective basis, which they could, absent the JPA, exercise individually. However, the legislature wanted to place some restriction on the power of the JPA, without that JPA having to comply with all restriction that might be in place for all of the members on the JPA. It would be unworkable, for instance, if the JPA had to satisfy or verify any and all restrictions from the ordinances of all of the members of the JPA when transacting the business of the JPA. In order to strike a balance, section 6509 permits the JPA to agree to any restrictions in its exercise of powers based on the restrictions of one identified member city.” FISCAL IMPACT:
None.
ACTIONS FOLLOWING APPROVAL:
Upon approval, mail the original signed copy of the new JPA and resolution.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
APPROVING AN AMENDMENT OF THE JOINT POWERS AGREEMENT OF THE CENTRAL
SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY
WHEREAS, the CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY (CSJVRMA) is a California Joint Powers Authority created and operated pursuant to California Government Code 6500 et. seq. for the purpose of pooling funds to provide coverage for indemnification and defense and to purchase excess insurance for certain civil claims involving general liability, workers’ compensation, and property damage; WHEREAS, the City of Chowchilla is authorized pursuant to California Government Code 990.8 to enter into a Joint Powers Agreement for the purposes described above; WHERAS, the City of Chowchilla is a member of the CSJVRMA; WHEREAS, the Joint Powers Agreement which was created establishing the CSJVRMA allows for amendment of the agreement upon approval by the City Council of two thirds of the members of the CSJVRMA;
WHEREAS, the CSJVRMA desires to amend the Joint Powers Agreement as set forth in the Agreement dated July 1, 1994, and as amended July 1, 2025, a copy of which is attached hereto and incorporated herein;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
IT IS HEREBY RESOLVED that the City Council of the City of Chowchilla approves the Central San Joaquin Valley Risk Management Authority Joint Powers Agreement, dated July 1, 1994, as amended and restated on July 1, 2025, and in the form as attached hereto, and it is FURTHER RESOLVED that the City Manager/Administrator is authorized and directed to execute such agreement.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of August, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
CENTRAL SAN JOAQUIN VALLEY
RISK MANAGEMENT AUTHORITY
JOINT POWERS AGREEMENT
AS AMENDED JULY 1, 20251994
CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY
JOINT POWERS AGREEMENT
TABLE OF CONTENTS
ARTICLE I ......................................................................................................................................... 3 DEFINITIONS .................................................................................................................................... 3 ARTICLE II ........................................................................................................................................ 4 PURPOSES ....................................................................................................................................... 4 ARTICLE III ....................................................................................................................................... 4 CREATION OF JOINT POWERS AUTHORITY ..................................................................................... 4 ARTICLE IV ....................................................................................................................................... 5 PARTIES TO AGREEMENT ................................................................................................................ 5 ARTICLE V ........................................................................................................................................ 5 MEMBERSHIP .................................................................................................................................. 5 ARTICLE VI ....................................................................................................................................... 6 TERM OF AGREEMENT .................................................................................................................... 6 ARTICLE VII ...................................................................................................................................... 6 POWERS OF THE AUTHORITY .......................................................................................................... 6 ARTICLE VIII ..................................................................................................................................... 7 BOARD OF DIRECTORS .................................................................................................................... 7 ARTICLE IX ....................................................................................................................................... 8 BYLAWS AND REGULATIONS ........................................................................................................... 8 ARTICLE X ........................................................................................................................................ 8 EXECUTIVE COMMITTEE ................................................................................................................. 8 ARTICLE XI ....................................................................................................................................... 9 OFFICERS ......................................................................................................................................... 9 ARTICLE XII ...................................................................................................................................... 9 JOINT PROTECTION PROGRAMS ..................................................................................................... 9 ARTICLE XIII ................................................................................................................................... 10 RESERVE FUNDS ............................................................................................................................ 10 ARTICLE XIV ................................................................................................................................... 10 OPERATING FUND ......................................................................................................................... 10 ARTICLE XV .................................................................................................................................... 10 BUDGET ......................................................................................................................................... 10 ARTICLE XVI ................................................................................................................................... 10 FUNDING AND PROCEDURES FOR CALCULATING ANNUAL CONTRIBUTIONS ............................. 10 Joint Powers Agreement
Table of Contents
ARTICLE XVII .................................................................................................................................. 10 RESPONSIBILITIES OF AUTHORITY ................................................................................................ 11 ARTICLE XVIII ................................................................................................................................. 11 RESPONSIBILITIES OF MEMBER CITIES .......................................................................................... 11 ARTICLE XIX ................................................................................................................................... 12 WITHDRAWAL ............................................................................................................................... 12 ARTICLE XX .................................................................................................................................... 12 INVOLUNTARY TERMINATION ...................................................................................................... 12 ARTICLE XXI ................................................................................................................................... 12 CONTINUED LIABILITY ................................................................................................................... 12 ARTICLE XXII .................................................................................................................................. 12 REFUNDS UPON WITHDRAWAL OR INVOLUNTARY TERMINATION ............................................. 12 ARTICLE XXIII ................................................................................................................................. 13 TERMINATION OF AUTHORITY ...................................................................................................... 13 ARTICLE XXIV ................................................................................................................................. 13 AUDIT ............................................................................................................................................ 14 ARTICLE XXV .................................................................................................................................. 14 ARBITRATION ................................................................................................................................ 14 ARTICLE XXVI ................................................................................................................................. 14 BINDING EFFECT OF BYLAWS, MASTER PLAN DOCUMENTS, AND MEMORANDA OF COVERAGE14 ARTICLE XXVII ................................................................................................................................ 14 ENFORCEMENT ............................................................................................................................. 14 ARTICLE XXVIII ............................................................................................................................... 14 AMENDMENTS .............................................................................................................................. 14 ARTICLE XXIX ................................................................................................................................. 15 NOTICES ........................................................................................................................................ 15 ARTICLE XXX .................................................................................................................................. 15 COUNTERPARTS ............................................................................................................................ 15 Joint Powers Agreement Page 1 Amended July 1, 20251994
AMENDED JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
THIS AMENDED AGREEMENT, dated for convenience this 1st day of July, 20251994, made and entered into by, between, and among those Member Cities which become parties to this Agreement by action of their governing boards adopting a resolution agreeing to participate in the joint powers entity created by the terms and conditions of this Agreement; RECITALS:
WHEREAS, California Government Code Section 6500, et. seq. provides that two or more public agencies may, by agreement, exercise any power common to the contracting parties; and WHEREAS, California Government Code Sections 990 and 990.4 provide that a local entity may self-insure, purchase insurance through an authorized insurer, purchase insurance through a surplus line broker, or any combination thereof; and WHEREAS, California Government Code Section 990.8 provides that two or more local public entities, by a joint powers agreement, may provide insurance for any authorized purpose by any one or more of the methods specified in Section 990.4; and WHEREAS, Article XVI, Section 6, of the California Constitution provides that insurance pooling arrangements under joint exercise of powers agreements shall not be considered the giving or lending of credit as prohibited therein; and
WHEREAS, each of the cities which are parties to this Agreement desires to join together with other cities in order to collectively self-insure or pool their losses and to jointly purchase insurance and administrative services in connection with Joint Protection Programs for said cities; and
WHEREAS, the Tulare-Kings Municipal Risk Management Authority, a public entity, was created by an initial Agreement dated April 1, 1979, among various cities within the Counties of Tulare and Kings; and
WHEREAS, the name of the organization was changed to the Central San Joaquin Valley Risk Management Authority on July 1, 1981; and
WHEREAS, the initial Agreement was amended on January 1, 1985 and July 1, 1994 by a two-thirds vote of the Member Cities' city councils; and Joint Powers Agreement Page 2 Amended July 1, 20251994
WHEREAS, said Member Cities have determined that it is again appropriate and in the public interest to make certain technical corrections and additions to this Agreement which will provide clarification and will permit the governing body to meet a minimum of two times a year to conduct that business which only the governing body may act upon; and WHEREAS, it is therefore necessary to amend said Joint Powers Agreement; and WHEREAS, said Agreement provides that amendments to the Agreement may be made by a vote of two-thirds (2/3rds) of the Member Cities by resolution of the City Councils of said Cities:
NOW, THEREFORE, for and in consideration of the execution of this Agreement by twothirds (2/3rds) of the Member Cities, each of the Member Cities which are parties hereto does hereby adopt this amended Agreement, dated July 1, 20251994, which concurrently supersedes that certain Agreement creating the Authority, dated April 1, 1979, and all amendments thereto.
Joint Powers Agreement Page 3 Amended July 1, 20251994
ARTICLE I
DEFINITIONS
The following words, when typed in bold print within the provisions of this Agreement, shall have the following definitions:
"Administrator" shall mean that person or group appointed by the Executive Committee and given responsibility for the management, administration, and operation of the Authority.
“Agreement” shall mean the Joint Powers Agreement creating the Central San Juoaquin Valley Risk Management Authority.
"Authority" shall mean the Central San Joaquin Valley Risk Management Authority, aka the RMA.
"Board of Directors" or "Board" shall mean the governing body of the Authority. "Broker" shall mean the insurance broker hired by the Executive Committee to acquire insurance coverage.
"Claims" shall mean demands made against the Authority arising out of occurrences which are claimed to be within one of the Authority'sJoint Protection Programs as developed by the Board.
"Deposit Premium" shall mean the annual dollar amount determined by the Board of Directors payable by each Member City for the purpose of self-insurance coverage, excess insurance premiums, and administrative costs, charged for the purpose of carrying out the powers of the Authority. those funds charged for the purpose of self-insured coverage. "Executive Committee" shall mean the elected officers and the representatives appointed by each region to represent that region.
"Fiscal Year" shall mean the period July 1 to June 30 of each year. "Insurance" shall mean any commercial insurance coverage. "Insurance Premium" shall mean those funds charged for the payment of group purchased insurance.
"Joint Protection Programs" shall mean any program to provide risk sharing or insurance coverage under this Agreement and shall include a determination as to the amount of initial Insurance Premiums and/or Deposit Premiums, a precise allocation plan and formula, and a determination of the amount and type, if any, of excess insurance to be purchased. .
Included within the term Joint Protection Program is the identification of exposures to accidental loss, the reduction or limitation of losses to Member City properties and from injuries to persons or property caused by the operations of Member Cities and the funding Joint Powers Agreement Page 4 Amended July 1, 20251994
of those risks, together with any other functions appropriate or necessary to the functioning of the Joint Protection Program.
"Master Plan Document" shall mean the document, formally adopted by the Executive Committeeparticipating Member Cities, containing the provisions setting forth the operations, policies, and provisions of a self-insured or pooled coverage program, which shall include, but not be limited to, the following:
1. The scope of the program;
2. The procedures to be followed;
3. Who may participate;
4. Any limits or restrictions;
5. How Deposit Premiums are determined;
6. How refunds, if any, are determined;
7. Commitments required by participants; and
8. How the document may be amended.
"Member City" shall mean a city which is an incorporated municipality organized with a council, City Manager/Administrator form of government, which has been approved for participation in the Authority by the Executive Committee in accordance with applicable provisions of the Agreement and the Bylaws, and has signed the Agreement. "Operating Fund" shall mean the fund established by the Authority for the purpose of paying just demands submitted to the Authority. ;
"Representative" shall mean the person, normally the City Manager/Administrator of the Member City , who has been designated in writing by the Member City to represent and act for and on behalf of the Member City regarding any matter before the Authority's Board or Executive Committee. The Representative must be either: (a) the City Manager/Administrator or (b) a person designated by the City Manager/Administrator who holds a management/organizational position with the Member City and whose responsibilities include all or part of the Member City’s risk management functions (i.e., finance, human resources, claims/losses, insurance, and safety/risk control). "Self-Insurance" shall mean the process whereby the Authority maintains sufficient reserves to pay all claims and associated expenses of a risk exposurearea without purchasing insurance to cover the risk or a portion of the risk.
ARTICLE II
PURPOSES
The purpose of this Agreement is to provide joint powers common to each Member City for insurance purposes; to pool self-insured claims and losses, to purchase or participate in excess pooling or excess insurance coverage, and to provide related administrative services including risk management, consulting, actuarial services, claims adjusting and legal defense services;and share risks; to implement risk management principles; and to provide for the future inclusion of additional incorporated municipalities desiring to become parties to the Agreement.
Joint Powers Agreement Page 5 Amended July 1, 20251994
ARTICLE III
CREATION OF JOINT POWERS AUTHORITY
A.
Pursuant to Section 6500, et. seq. of the California Government Code, the Authority is a public entity separate and apart from the parties to this Agreement. Pursuant to Government Code Section 6508.1, the debts, liabilities, and obligations of this joint powers authority shall not constitute debts, liabilities, or obligations of any party to this Agreement.
B. It is the express understanding of all parties that the Authority created originally on or about April 1, 1979, is the same Authority continued under this Agreement, even though some powers and procedures may be changed by this Agreement.
C. The Authority, its Board, officers, membership, and staff shall be governed by this Agreement, the Bylaws, Master Plan Documents, Memoranda of Coverage, and other documents duly adopted by the Authority.
ARTICLE IV
PARTIES TO AGREEMENT
A. Each city which has applied to and been accepted as a member of the Authority is a party to the Joint Exercise of Powers Agreement. . Each party to the Agreement shall be bound by this Agreement when two-thirds (2/3rds) of the city councils of the Member Cities have adopted this amended Agreement. . A party to this Agreement certifies that it intends to and does contract with the Authority and with all other Member Cities which have signed this Agreement and, in addition, with each city which may hereafter be added as a party to and may sign this Agreement. . Each city which has or may hereafter sign this Agreement also certifies that the deletion of any city from the Authority by voluntary withdrawal, involuntary termination, or otherwise, shall not affect this Agreement nor each Member City's intent to contract as described above with the then remaining Member Cities.
B. Each city which is a member of the Authority at the time this amended Agreement is adopted by two-thirds (2/3rds) of the Member Cities, certifies that it intends to and does hereby contract with the Authority and with all other current Member Cities, and in addition, with each city which may hereafter be added as a party to and may sign this Agreement.
ARTICLE V
MEMBERSHIP
A. ELIGIBILITY
Joint Powers Agreement Page 6 Amended July 1, 20251994
To be a member of this Authority, a city must be an incorporated municipality which is characterized by having professional management as typified by a bona fide Council Manager/Administrator form of government and must be approved for participation in the Authority in the manner provided by the Bylaws.
B. NEW MEMBERS
Eligible incorporated municipalities may become a party to this Agreement pursuant to the Bylaws of the Authority.
ARTICLE VI
TERM OF AGREEMENT
This Agreement, as amended, shall become effective when approved by two thirds (2/3rds) of the respective City Councils of the Member Cities. . When effective, this Agreement, as may be amended from time to time, shall continue thereafter until terminated as herein provided. . This Agreement shall become effective as to any new Member City in accordance with the Bylaws and Master Plan Documents of the Authority.
ARTICLE VII
POWERS OF THE AUTHORITY
A. The Authority shall have all of the powers common to Member Cities and all additional powers set forth in Section 6500, et. seq. and Section 989, et. seq. of the Government Code and other applicable law. The Authority shall have all of the rights, immunities, privileges, and defenses afforded each Member City and peculiar to the particular Member City being sued or against which there has been a claim.
Pursuant to and to the extent required by Government Code section 6509, the Authority shall be restricted in the exercise of its powers in the same manner as the City of Ripon is restricted in the exercise of its powers. In the event the City of Ripon shall cease to be a Member of the Authority, then the Authority shall be restricted in the exercise of its powers in the same manner as the City of Madera.
The Authority is hereby authorized to do all acts necessary or appropriate for the exercise of said powers, including, but not limited to any or all of the following:
1. to mMake and enter into contracts;
2. to iIncur debts, liabilities, and obligations, but no debt, liability, or obligation of the Authority is a debt, liability, or obligation of a Member City which is a part of this Agreementexcept as otherwise provided;
Joint Powers Agreement Page 7 Amended July 1, 20251994
3. to aAssess Member Cities as deemed appropriate for good cause as determined by the Executive Committee;
4. to aAcquire, hold, or dispose of real and personal property;
5. to rReceive contributions and donations of property, funds, services, and other forms of assistance from any sources;
6. to sSue and be sued in its own name;
7. to eEmploy agents and employees;
8. to aAcquire, construct, manage, and maintain buildings;
9. to lLease real or personal property, including propertythat of a Member City; and
10. to exercise all powers necessary and proper to carry out the terms and provisions of this Agreement or otherwise authorized by law.
B. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. This Agreement shall be construed and interpreted in accordance with the laws of the State of California.
ARTICLE VIII
BOARD OF DIRECTORS
A. STRUCTURE
The Authority shall be governed by a Board composed of one Representative from each Member City, each serving in an individual capacity as a member of the Board. . Each Member City shall appoint one Representative. . Appointments shall be limited to the City Manager/Administrator of each Member City or his/her authorized delegate. . Each Member City shall also appoint one alternate Representative. . The alternate Representative may attend and may participate in any meeting of the Board. . When the regular Representative for whom he/she is an alternate is absent from the meeting, the alternate Representative may vote. . Each Representative serves at the pleasure of the Member City being represented. . Each Representative has one vote as the member of the Board. . Representatives are not entitled to compensation. . However, the Executive Committee may authorize reimbursement for expense incurred by a Representative in connection with his/her duties for the Authority.
B. MEETINGS OF THE BOARD
The Board shall hold at least two meetings each year. . The Executive Committee shall determinefix by resolution the date upon which and the hour and place at which each regular meeting is to be held.
The President may call for a special meeting of the Board in compliance with open meeting laws in the State of California or a majority of the Representatives may call for a special meeting by filing a written request with the Secretary. . The President must then set a date, time, and place for the meeting to be held within 30 days and must make provision for Commented [JW1]: Meetings will continue to
be adopted by the EC, but in a less
formal manner than by resolution.
Joint Powers Agreement Page 8 Amended July 1, 20251994
notice of the special meeting being given.
Each meeting of the Board, and each meeting of the Executive Committee, including, without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act (Section 54950 et. seq. of the Government Code).
The Authority shall have minutes of regular and special meetings kept. . As soon as possible after each meeting, copies of the minutes shall be forwarded to each Member City.
A majority of the members of the Board is a quorum for the transaction of business. .
However, less than a quorum may adjourn from time to time. . A vote of the majority of a quorum at a meeting is sufficient to take action, unless otherwise specified.
C. POWERS OF THE BOARD OF DIRECTORS
The Board shall provide policy direction for the Executive Committee, the officers, and the Administrator. . The Board may delegate any and all of its authority to the Executive Committee except the following:
1. Amendments toTo change the Bylaws, which requires at least a two-thirds (2/3rds) vote of the Board;
2. To creation ofe any new Joint Protection Program;
3. To termination of ae any Joint Protection Program;
4. To expulsion ofel a Member City;
5. To adoption of an operating budget for the Authority;
6. To change or reviseAmendments to the Authority's Conflict of Interest Code; and
7. To Aauthorization for e the issuance, modification, or defeasance of bonds.
ARTICLE IX
BYLAWS AND REGULATIONS
The Board shall adopt Bylaws and general regulations not inconsistent with State law and this Agreement.
ARTICLE X
EXECUTIVE COMMITTEE
The Board shall establish an Executive Committee and delegate functions not otherwise reserved to the entire Board. . The Executive Committee shall be appointed, have the powers, and hold meetings as set forth in the Bylaws.
Joint Powers Agreement Page 9 Amended July 1, 20251994
ARTICLE XI
OFFICERS
The officers of the Authority shall consist of an elected President, First Vice President, and Second Vice President, and an appointed Administrator, Secretary, and Treasurer. . Other offices may be created by the Bylaws, Master Plan Documents, or the Administrator, subject to the approval of the Board or the Executive Committee, as applicable. . All offices shall be filled and have the powers and responsibilities as prescribed in the Bylaws or Master Plan Documents.
The president shall appoint someone other than the treasurer to perform the functions of auditor/controller of the Authority shall be performed by the Authority’s contracted administration firmofficers or employees or in-house staff, or the president may assume these functions as a collateral duty of the presidency. The auditor/controller must be a member of the Board. The Ttreasurer and auditor/controller have the powers, duties, and responsibilities specified in Government Code Section 6505.6. The Board shall require the treasurer and auditor/controller to file with the Authority an official bond in the amount to be fixed by the Board. The Authority shall pay the cost of bond premiums required by this section. The Authority shall purchase a bond which includes coverage for the duties performed by the Treasurer and the auditor/controller.
ARTICLE XII
JOINT PROTECTION PROGRAMS
A. The Executive Committee may at any time, and from time to time, offer to the Board for adoption such Joint Protection Programs as may be deemed desirable. . All Member Cities shall participate in those mandatory Joint Protection Programs as set forth in the Bylaws. .
All other Joint Protection Programs shall be optional. . The Board shall establish the amount of Deposit Premium, determine the amount of loss reserve contribution, provide for the handling of claims, and otherwise establish the policies and procedures necessary to provide a particular Joint Protection Program for Member Cities.
B. Each Joint Protection Program shall remain separate and distinct from every other Joint Protection Program and the liability and obligations of each program, and its participating Member Cities shall not be a liability or obligation of another program or participating Member City of another program. . A Member City's participation in one program shall not obligate it or its funds on deposit with the Authority, to the debts, obligations, or liabilities of any other program. . Separate accounting shall be maintained for each Joint Protection Program.
ARTICLE XIII
RESERVE FUNDS
The Authority may establish a fund for the purpose of paying the losses and establishing a reserve Commented [JR2]: Staff conformed this
section to reflect current
practices/align with 6505.6.
Joint Powers Agreement Page 10 Amended July 1,
20251994
to cover the retained portion of losses that may be insured against by the Authority or the Member Cities. . The funds treasurer shall be invested and reinvest the funds in compliance with the Authority's Investment Policy and relevant Sstate laws. and in the same manner as if they were Member City funds.
Refunds shall be made in accordance with the Master Plan Document for each program.
ARTICLE XIV
OPERATING FUND
The Authority shall establish an Operating Fund. The Operating Fund is for the purpose of paying insurance premiums, broker's fees, adjusting fees, consultant and legal fees, and such other items as are appropriate. . Just demands for payment shall be made by warrants in compliance with the adopted budget. . The warrants shall be paid as directed by the Executive Committee. . The Board may establish such other funds as it considers appropriate which shall be maintained and invested in the same manner as the Operating Fund.
ARTICLE XV
BUDGET
The Board shall adopt a budget annually.
ARTICLE XVI
FUNDING AND PROCEDURES FOR CALCULATING
ANNUAL CONTRIBUTIONS
The provisions for funding and calculating annual contributions shall be as set forth in the Bylaws and the Master Plan Documents for each program.
ARTICLE XVII
RESPONSIBILITIES OF AUTHORITY
The Authority may perform or have performed the following functions in discharging its responsibilities under this Agreement:
1. assist Member Cities in developing their risk management programs ;
2. participate in risk management advisory committees formed by Member Cities;
3. provide loss prevention, safety, and security services;
4. provide all program services as required by program Master Plan Documents ;
5. provide loss analysis control by use of statistical analysis, data processing, and Commented [JR3]: This change is to allow
for the potential formation of a captive
entity, and investment under other state
laws.
Commented [JR4]: The MPD will be amended to
provide for flexibility in the payment
of refunds. Recall board action to
ratify decisions of executive committee
in withholding refund amounts.
Joint Powers Agreement Page 11 Amended July 1,
20251994
record and file keeping services. . The purpose of this information is to identify high exposure operations and to evaluate proper levels of self-retention and deductibles;
6. conduct risk management audits to review the participation of each Member City in the program; and
7. perform other functions as required by the Board for the purpose of accomplishing the goals of this Agreement.
ARTICLE XVIII
RESPONSIBILITIES OF MEMBER CITIES
The Member Cities have the following responsibilities:
1. pay all financial obligations to the Authority within the time prescribed;
2. appoint an individual to be responsible for coordinating the risk management activities of his/her Member City with the Authority;
3. conduct its operations in a manner which enhances safety and loss control consistent with recommendations by Authority staff;
4. adopt a risk management program ;carry out the duties and responsibilities as assigned or mandated by the Board of Directors and/or the Executive Committee which may include, but are not limited to, adherence to and/or adoption of policies and procedures, support of initiatives deemed necessary for the proper functioning of the Authority, and timely execution of tasks deemed necessary for the operation and governance of the Authority;
5. establish a risk management advisory committee to work with the risk manager of the Authority;
6. maintain an active safety committee;
7. report to the risk manager during the development stages the addition of new programs or the significant reduction or expansion of existing programs;
8. permit and assist the Authority in conducting on-site safety and loss control inspections and/or safety or risk management audits as required by the Board;
9. submit DE3-DPs to the Authority concurrent with the submission dates established by the State of California;
10. submit underwriting information requested by the Authority on a timely basis;
11. provide accurate statistical data concerning the Member City to the Authority when requested;
12. cooperate fully with the Authority in determining the cause of losses and in the settlement of losses;
13. cooperate to the fullest extent with the Authority's Litigation Manager on matters of claims and the conduct of defense of claims; and
14. comply with risk management requirements established under the authority of this Agreement.
ARTICLE XIX
Commented [JW5]: This will be included in
the program master plan document
Joint Powers Agreement Page 12 Amended July 1,
20251994
WITHDRAWAL
Any Member City, at their sole discretion, may voluntarily withdraw from membership in the Authority only at the end of any fiscal year by notifying the Authority in writing six (6) months prior to the end of any fiscal year, or at any other time which is agreed to by the Board, unless otherwise prohibited in the Master Plan Document of any program. . A notice of withdrawal shall be final and irreversible upon its receipt by the Authority unless the Board authorizes it to be rescinded by the Member City.
ARTICLE XX
INVOLUNTARY TERMINATION
A Member City may be removed from this Agreement by a two-thirds (2/3rds) vote of the Board for non-compliance with any provision of the governing documents. . Such involuntary termination shall proceed in accordance with the provisions set forth in the Bylaws.
ARTICLE XXI
CONTINUED LIABILITY
Upon any withdrawal or involuntary termination of a Member City, the said Member City shall continue to be responsible for any unpaid insurance premiums, deposit premiums, surcharges, administration costs, and claims and for any debts and assessments in accordance with the provisions of this Agreement, the Bylaws, Resolutions, and the Master Plan Documents of Joint Protection Programs in which the Member City has participated.
ARTICLE XXII
REFUNDS UPON WITHDRAWAL OR INVOLUNTARY TERMINATION
A. In the event a Member City withdraws from the Authority or its membership is involuntarily terminated, said Member City shall thereafter be entitled to receive its unobligated share of monies held by the Authority, less any and all amounts owed the Authority whether contingent or not, by the said withdrawing or terminated Member City. . The remainder of any funds held by the Authority for the withdrawing or terminating Member City subject to any retention amount as provided below, shall be the unobligated share and shall be refunded to the Member City and shall be accepted in full settlement and satisfaction against any claims the Member City may have against the Authority. . The Authority shall require that sufficient funds are retained on deposit with the Authority to completely pay any and all unpaid insurance premiums, deposit premiums, surcharges, administration costs, or claims, including any amounts for unreported claims and maturity of claims against said withdrawing or terminating Member City, and the amount to be retained on deposit shall be determined by the Authority. . Any and all rights, entitlements, benefits, and obligations after withdrawal or termination shall be subject to ongoing obligations and responsibilities agreed to by a Member City by agreeing to Joint Powers Agreement Page 13 Amended July 1,
20251994
participate in any pooled Joint Protection Programs.
ARTICLE XXIII
TERMINATION OF AUTHORITY
The Authority may be terminated at any time if two-thirds (2/3rds) of the respective city councils of the then-Member Cities adopt a resolution requesting termination of the Authority; provided, however, that this Joint Powers Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, concluding any pending litigations, for the liquidation and distribution of assets, and for all other functions necessary to conclude the affairs of the Authority. . The Board shall take whatever action is necessary or appropriate to cause these ongoing responsibilities to be discharged and to effectively close out the affairs of the Authority. . Upon completion of the liquidation and dissolution of the Authority, the Authority shall pay to each city which was a member of the Authority at the time of termination its pro rata share based on a city's contribution to the Authority, as determined by an independent Certified Public Accountant which has audited the financial records of the Authority, of the remaining assets of the Authority and shall pay to each Member City all monies held by the Authority in the reserve funds of that Member City.
ARTICLE XXIV
AUDIT
A. The Authority shall obtain an annual certified audit of its accounts and financial records which shall be made by a Certified Public Accountant and shall conform to generally accepted auditing standards.
Joint Powers Agreement Page 14 Amended July 1,
20251994
ARTICLE XXV
ARBITRATION
Any controversy between the parties hereto arising out of this Agreement shall be submitted to arbitration, and such arbitration shall comply with and be governed by the provisions of the California Arbitration Act, Sections 1280 through 1294.2 of the California Code of Civil Procedure.
ARTICLE XXVI
BINDING EFFECT OF BYLAWS, MASTER PLAN DOCUMENTS,
AND MEMORANDA OF COVERAGE
Each party to this Agreement by the execution hereof agrees to be bound by and to comply with all of the terms and conditions of this Agreement, the Bylaws, the Master Plan Documents, Memoranda of Coverage, and any resolution adopted by the Authority, the Board of Directors, or the Executive Committee as they now exist or may hereafter be adopted or amended.
ARTICLE XXVII
ENFORCEMENT
The Authority is hereby granted authority to enforce this Agreement. . In the event action is instituted by the Authority to enforce any term of this Agreement, the Bylaws, or the Master Plan Document of any program against any Member City, the prevailing party shall be entitled to reasonable attorney fees and costs incurred because of said action, in addition to other appropriate relief.
ARTICLE XXVIII
AMENDMENTS
This Agreement may be amended by written resolution approved and signed by two-thirds (2/3rds) of the respective city councils of the Member Cities that are parties to this Agreement. . Upon signature of any amendment by two-thirds (2/3rds) of the Member Cities, any Member City failing or refusing to abide by such amendment may be involuntarily terminated as a party to this Agreement as provided herein.
ARTICLE XXIX
NOTICES
Notices under this Agreement shall be sufficient if delivered to the office of the Clerk or Secretary of the respective jurisdictions.
Joint Powers Agreement Page 15 Amended July 1,
20251994
ARTICLE XXX
COUNTERPARTS
This Agreement may be executed in one or more counterparts and shall be as fully effective as though executed in one document.
Dated:
MEMBER CITY
BY:
CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY
JOINT POWERS AGREEMENT
AS AMENDED AND RESTATED
EFFECTIVE JULY 1, 2025
TABLE OF CONTENTS
AMENDED AND RESTATED
JOINT POWERS AGREEMENT
CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY (CSJVRMA) ARTICLE I – DEFINITIONS ................................................................................................................. 2 ARTICLE II – PURPOSES ................................................................................................................... 4 ARTICLE III – CREATION OF JOINT POWERS AUTHORITY ................................................................ 4 ARTICLE IV – PARTIES TO AGREEMENT ........................................................................................... 4 ARTICLE V – MEMBERSHIP .............................................................................................................. 5 ARTICLE VI – TERM OF AGREEMENT ............................................................................................... 5 ARTICLE VII – POWERS OF THE AUTHORITY ................................................................................... 5 ARTICLE VIII – BOARD OF DIRECTORS ............................................................................................. 6 ARTICLE IX – BYLAWS AND REGULATIONS ...................................................................................... 7 ARTICLE X – EXECUTIVE COMMITTEE ............................................................................................. 7 ARTICLE XI – OFFICERS .................................................................................................................... 8 ARTICLE XII – JOINT PROTECTION PROGRAMS ............................................................................... 8 ARTICLE XIII – RESERVE FUNDS ....................................................................................................... 8 ARTICLE XIV – OPERATING FUND .................................................................................................... 9 ARTICLE XV – BUDGET ..................................................................................................................... 9 ARTICLE XVI – FUNDING AND PROCEDURES FOR CALCULATING ANNUAL CONTRIBUTIONS ........ 9 ARTICLE XVII – RESPONSIBILITIES OF AUTHORITY .......................................................................... 9 ARTICLE XVIII – RESPONSIBILITIES OF MEMBER CITIES ................................................................ 10 ARTICLE XIX - WITHDRAWAL ......................................................................................................... 10 ARTICLE XX – INVOLUNTARY TERMINATION ................................................................................ 11 ARTICLE XXI – CONTINUED LIABILITY ............................................................................................ 11 CSJVRMA Amended and Restated Joint Powers Agreement
Table of Contents
ARTICLE XXII – REFUNDS UPON WITHDRAWAL OR INVOLUNTARY TERMINATION ..................... 11 ARTICLE XXIII – TERMINATION OF AUTHORITY............................................................................. 11 ARTICLE XXIV – AUDIT ................................................................................................................... 12 ARTICLE XXV - ARBITRATION ......................................................................................................... 12 ARTICLE XXVI – BINDING EFFECT OF BYLAWS, MASTER PLAN DOCUMENTS, AND MEMORANDA OF COVERAGE .................................................................................................. 12 ARTICLE XXVII - ENCORCEMENT ................................................................................................... 12 ARTICLE XXVIII - AMENDMENTS ................................................................................................... 13 ARTICLE XXIX - NOTICES ................................................................................................................ 13 ARTICLE XXX - COUNTERPARTS ..................................................................................................... 13 Joint Powers Agreement Page 1 Amended and Restated July 1, 2025
AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
THIS AMENDED AND RESTATED AGREEMENT, dated for convenience this 1st day of July 2025, made and entered into by, between, and among those Member Cities which become parties to this Agreement by action of their governing boards adopting a resolution agreeing to participate in the joint powers entity created by the terms and conditions of this Agreement; RECITALS:
WHEREAS, California Government Code Section 6500, et. seq. provides that two or more public agencies may, by agreement, exercise any power common to the contracting parties; and WHEREAS, California Government Code Sections 990 and 990.4 provide that a local entity may self-insure, purchase insurance through an authorized insurer, purchase insurance through a surplus line broker, or any combination thereof; and
WHEREAS, California Government Code Section 990.8 provides that two or more local public entities, by a joint powers agreement, may provide insurance for any authorized purpose by any one or more of the methods specified in Section 990.4; and WHEREAS, Article XVI, Section 6, of the California Constitution provides that insurance pooling arrangements under joint exercise of powers agreements shall not be considered the giving or lending of credit as prohibited therein; and
WHEREAS, each of the cities which are parties to this Agreement desires to join together with other cities in order to collectively self-insure or pool their losses and to jointly purchase insurance and administrative services in connection with Joint Protection Programs for said cities; and
WHEREAS, the Tulare-Kings Municipal Risk Management Authority, a public entity, was created by an initial Agreement dated April 1, 1979, among various cities within the Counties of Tulare and Kings; and
WHEREAS, the name of the organization was changed to the Central San Joaquin Valley Risk Management Authority on July 1, 1981; and
WHEREAS, the initial Agreement was amended on January 1, 1985, and July 1, 1994, by a two-thirds vote of the Member Cities' city councils; and WHEREAS, said Member Cities have determined that it is again appropriate and in the public interest to make certain technical corrections and additions to this Agreement which will provide clarification and will permit the governing body to meet a minimum of two times a year to conduct that business which only the governing body may act upon; and Joint Powers Agreement Page 2 Amended and Restated July 1, 2025 WHEREAS, it is therefore necessary to amend said Joint Powers Agreement; and WHEREAS, said Agreement provides that amendments to the Agreement may be made by a vote of two-thirds (2/3rds) of the Member Cities by resolution of the City Councils of said Cities:
NOW, THEREFORE, for and in consideration of the execution of this Agreement by twothirds (2/3rds) of the Member Cities, each of the Member Cities which are parties hereto does hereby adopt this amended and restated Agreement, dated July 1, 2025, which concurrently supersedes that certain Agreement creating the Authority, dated April 1, 1979, and all amendments thereto.
ARTICLE I
DEFINITIONS
The following words, when typed in bold print within the provisions of this Agreement, shall have the following definitions:
"Administrator" shall mean that person or group appointed by the Executive Committee and given responsibility for the management, administration, and operation of the Authority.
“Agreement” shall mean the Joint Powers Agreement creating the Central San Joaquin Valley Risk Management Authority.
"Authority" shall mean the Central San Joaquin Valley Risk Management Authority, aka the RMA.
"Board of Directors" or "Board" shall mean the governing body of the Authority. "Broker" shall mean the insurance broker hired by the Executive Committee to acquire insurance coverage.
"Claims" shall mean demands made against the Authority arising out of occurrences which are claimed to be within one of the Authority'sJoint Protection Programs as developed by the Board.
"Deposit Premium" shall mean the annual dollar amount determined by the Board of Directors payable by each Member City for the purpose of self-insurance coverage, excess insurance premiums, and administrative costs, charged for the purpose of carrying out the powers of the Authority.
"Executive Committee" shall mean the elected officers and the representatives appointed by each region to represent that region.
Joint Powers Agreement Page 3 Amended and Restated July 1, 2025 "Fiscal Year" shall mean the period July 1 to June 30 of each year. "Insurance" shall mean any commercial insurance coverage. "Insurance Premium" shall mean those funds charged for the payment of group purchased insurance.
"Joint Protection Programs" shall mean any program to provide risk sharing or insurance coverage under this Agreement and shall include a determination as to the amount of initial Insurance Premiums and/or Deposit Premiums, a precise allocation plan and formula, and a determination of the amount and type, if any, of excess insurance to be purchased. Included within the term Joint Protection Program is the identification of exposures to accidental loss, the reduction or limitation of losses to Member City properties and from injuries to persons or property caused by the operations of Member Cities and the funding of those risks, together with any other functions appropriate or necessary to the functioning of the Joint Protection Program. "Master Plan Document" shall mean the document, formally adopted by the Executive Committee, setting forth the operations, policies, and provisions of a self-insured or pooled coverage program, which shall include, but not be limited to, the following:
1. The scope of the program;
2. The procedures to be followed;
3. Who may participate;
4. Any limits or restrictions;
5. How Deposit Premiums are determined;
6. How refunds, if any, are determined;
7. Commitments required by participants; and
8. How the document may be amended.
"Member City" shall mean a city which is an incorporated municipality organized with a council, City Manager/Administrator form of government, which has been approved for participation in the Authority by the Executive Committee in accordance with applicable provisions of the Agreement and the Bylaws and has signed the Agreement. "Operating Fund" shall mean the fund established by the Authority for the purpose of paying just demands submitted to the Authority.
"Representative" shall mean the person, designated in writing by the Member City to represent and act for and on behalf of the Member City regarding any matter before the Authority's Board or Executive Committee. The Representative must be either: (a) the City Manager/Administrator or (b) a person designated by the City Manager/Administrator who holds a management/organizational position with the Member City and whose responsibilities include all or part of the Member City’s risk management functions (i.e., finance, human resources, claims/losses, insurance, and safety/risk control).
Joint Powers Agreement Page 4 Amended and Restated July 1, 2025 "Self-Insurance" shall mean the process whereby the Authority maintains sufficient reserves to pay all claims and associated expenses of a risk exposure without purchasing insurance to cover the risk or a portion of the risk.
ARTICLE II
PURPOSES
The purpose of this Agreement is to provide joint powers common to each Member City for insurance purposes; to pool self-insured claims and losses, to purchase or participate in excess pooling or excess insurance coverage, and to provide related administrative services including risk management, consulting, actuarial services, claims adjusting and legal defense services; to implement risk management principles; and to provide for the future inclusion of additional incorporated municipalities desiring to become parties to the Agreement.
ARTICLE III
CREATION OF JOINT POWERS AUTHORITY
Pursuant to Section 6500, et. seq. of the California Government Code, the Authority is a public entity separate and apart from the parties to this Agreement. Pursuant to Government Code Section 6508.1, the debts, liabilities, and obligations of this joint powers authority shall not constitute debts, liabilities, or obligations of any party to this Agreement.
It is the express understanding of all parties that the Authority created originally on or about April 1, 1979, is the same Authority continued under this Agreement, even though some powers and procedures may be changed by this Agreement.
The Authority, its Board, officers, membership, and staff shall be governed by this Agreement, the Bylaws, Master Plan Documents, Memoranda of Coverage, and other documents duly adopted by the Authority.
ARTICLE IV
PARTIES TO AGREEMENT
Each city which has applied to and been accepted as a member of the Authority is a party to the Joint Exercise of Powers Agreement. Each party to the Agreement shall be bound by this Agreement when two-thirds (2/3rds) of the city councils of the Member Cities have adopted this amended and restated Agreement. A party to this Agreement certifies that it intends to and does contract with the Authority and with all other Member Cities which have signed this Agreement and, in addition, with each city which may hereafter be added as a party to and may sign this Agreement. Each city which has or may hereafter sign this Agreement also certifies that the deletion of any city from the Authority by voluntary withdrawal, involuntary termination, or otherwise, shall not affect this Agreement nor each Member City's intent to contract as described above with the then remaining Member Cities.
Joint Powers Agreement Page 5 Amended and Restated July 1, 2025 Each city which is a member of the Authority at the time this amended and restated Agreement is adopted by two-thirds (2/3rds) of the Member Cities, certifies that it intends to and does hereby contract with the Authority and with all other current Member Cities, and in addition, with each city which may hereafter be added as a party to and may sign this Agreement.
ARTICLE V
MEMBERSHIP
A. ELIGIBILITY
To be a member of this Authority, a city must be an incorporated municipality which is characterized by having professional management as typified by a bona fide Council Manager/Administrator form of government and must be approved for participation in the Authority in the manner provided by the Bylaws.
B. NEW MEMBERS
Eligible incorporated municipalities may become a party to this Agreement pursuant to the Bylaws of the Authority.
ARTICLE VI
TERM OF AGREEMENT
This Agreement, as amended and restated, shall become effective when approved by two thirds (2/3rds) of the respective City Councils of the Member Cities. When effective, this Agreement, as may be amended from time to time, shall continue thereafter until terminated as herein provided.
This Agreement shall become effective as to any new Member City in accordance with the Bylaws and Master Plan Documents of the Authority.
ARTICLE VII
POWERS OF THE AUTHORITY
Pursuant to and to the extent required by Government Code section 6509, the Authority shall be restricted in the exercise of its powers in the same manner as the City of Ripon is restricted in the exercise of its powers. In the event the City of Ripon shall cease to be a Member of the Authority, then the Authority shall be restricted in the exercise of its powers in the same manner as the City of Madera.
The Authority is hereby authorized to do all acts necessary or appropriate for the exercise of said powers, including, but not limited to any or all of the following:
1. Make and enter into contracts;
Joint Powers Agreement Page 6 Amended and Restated July 1, 2025
2. Incur debts, liabilities, and obligations, but no debt, liability, or obligation of the Authority is a debt, liability, or obligation of a Member City except as otherwise provided;
3. Assess Member Cities as deemed appropriate by the Executive Committee;
4. Acquire, hold, or dispose of real and personal property;
5. Receive contributions and donations of property, funds, services, and other forms of assistance from any source;
6. Sue and be sued in its own name;
7. Employ agents and employees;
8. Acquire, construct, manage, and maintain buildings;
9. Lease real or personal property, including property of a Member City; and
10. To exercise all powers necessary and proper to carry out the terms and provisions of this Agreement or otherwise authorized by law.
This Agreement shall be construed and interpreted in accordance with the laws of the State of California.
ARTICLE VIII
BOARD OF DIRECTORS
A. STRUCTURE
The Authority shall be governed by a Board composed of one Representative from each Member City, each serving in an individual capacity as a member of the Board. Each Member City shall appoint one Representative. Appointments shall be limited to the City Manager/Administrator of each Member City or his/her authorized delegate. Each Member City shall also appoint one alternate Representative. The alternate Representative may attend and may participate in any meeting of the Board. When the regular Representative for whom he/she is an alternate is absent from the meeting, the alternate Representative may vote. Each Representative serves at the pleasure of the Member City being represented. Each Representative has one vote as the member of the Board.
Representatives are not entitled to compensation. However, the Executive Committee may authorize reimbursement for expense incurred by a Representative in connection with his/her duties for the Authority.
B. MEETINGS OF THE BOARD
The Board shall hold at least two meetings each year. The Executive Committee shall determine the date upon which and the hour and place at which each regular meeting is to be held.
The President may call for a special meeting of the Board in compliance with open meeting laws in the State of California or a majority of the Representatives may call for a special Joint Powers Agreement Page 7 Amended and Restated July 1, 2025 meeting by filing a written request with the Secretary. The President must then set a date, time, and place for the meeting to be held within 30 days and must make provision for notice of the special meeting being given.
Each meeting of the Board, and each meeting of the Executive Committee, including, without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act (Section 54950 et. seq. of the Government Code).
The Authority shall have minutes of regular and special meetings kept. As soon as possible after each meeting, copies of the minutes shall be forwarded to each Member City.
A majority of the members of the Board is a quorum for the transaction of business.
However, less than a quorum may adjourn from time to time. A vote of the majority of a quorum at a meeting is sufficient to take action, unless otherwise specified.
C. POWERS OF THE BOARD OF DIRECTORS
The Board shall provide policy direction for the Executive Committee, the officers, and the Administrator. The Board may delegate any and all of its authority to the Executive Committee except the following:
1. Amendments to the Bylaws, which requires at least a two-thirds (2/3rds) vote of the Board;
2. Creation of any new Joint Protection Program;
3. Termination of any Joint Protection Program;
4. Expulsion of a Member City;
5. Adoption of an operating budget for the Authority;
6. Amendments to the Authority's Conflict of Interest Code; and
7. Authorization for the issuance, modification, or defeasance of bonds.
ARTICLE IX
BYLAWS AND REGULATIONS
The Board shall adopt Bylaws and general regulations not inconsistent with State law and this Agreement.
ARTICLE X
EXECUTIVE COMMITTEE
The Board shall establish an Executive Committee and delegate functions not otherwise reserved to the entire Board. The Executive Committee shall be appointed, have the powers, and hold meetings as set forth in the Bylaws.
Joint Powers Agreement Page 8 Amended and Restated July 1, 2025
ARTICLE XI
OFFICERS
The officers of the Authority shall consist of an elected President, First Vice President, and Second Vice President, and an appointed Administrator, Secretary, and Treasurer. Other offices may be created by the Bylaws, Master Plan Documents, or the Administrator, subject to the approval of the Board or the Executive Committee, as applicable. All offices shall be filled and have the powers and responsibilities as prescribed in the Bylaws or Master Plan Documents.
The functions of auditor/controller of the Authority shall be performed by the Authority’s officers or employees. The Treasurer and auditor/controller have the powers, duties, and responsibilities specified in Government Code Section 6505.6. The Authority shall purchase a bond which includes coverage for the duties performed by the Treasurer and the auditor/controller.
ARTICLE XII
JOINT PROTECTION PROGRAMS
A. The Executive Committee may at any time, and from time to time, offer to the Board for adoption such Joint Protection Programs as may be deemed desirable. All Member Cities shall participate in those mandatory Joint Protection Programs as set forth in the Bylaws.
All other Joint Protection Programs shall be optional. The Board shall establish the amount of Deposit Premium, determine the amount of loss reserve contribution, provide for the handling of claims, and otherwise establish the policies and procedures necessary to provide a particular Joint Protection Program for Member Cities.
B. Each Joint Protection Program shall remain separate and distinct from every other Joint Protection Program and the liability and obligations of each program, and its participating Member Cities shall not be a liability or obligation of another program or participating Member City of another program. A Member City's participation in one program shall not obligate it or its funds on deposit with the Authority, to the debts, obligations, or liabilities of any other program. Separate accounting shall be maintained for each Joint Protection Program.
ARTICLE XIII
RESERVE FUNDS
The Authority may establish a fund for the purpose of paying the losses and establishing a reserve to cover the retained portion of losses that may be insured against by the Authority or the Member Cities. The funds shall be invested in compliance with the Authority's Investment Policy and relevant state laws.
Refunds shall be made in accordance with the Master Plan Document for each program.
Joint Powers Agreement Page 9 Amended and Restated July 1, 2025
ARTICLE XIV
OPERATING FUND
The Authority shall establish an Operating Fund. The Operating Fund is for the purpose of paying insurance premiums, broker's fees, adjusting fees, consultant and legal fees, and such other items as are appropriate. Just demands for payment shall be made by warrants in compliance with the adopted budget. The warrants shall be paid as directed by the Executive Committee. The Board may establish such other funds as it considers appropriate which shall be maintained and invested in the same manner as the Operating Fund.
ARTICLE XV
BUDGET
The Board shall adopt a budget annually.
ARTICLE XVI
FUNDING AND PROCEDURES FOR CALCULATING
ANNUAL CONTRIBUTIONS
The provisions for funding and calculating annual contributions shall be as set forth in the Bylaws and the Master Plan Documents for each program.
ARTICLE XVII
RESPONSIBILITIES OF AUTHORITY
The Authority may perform or have performed the following functions in discharging its responsibilities under this Agreement:
1. Assist Member Cities in developing their risk management programs;
2. Participate in risk management advisory committees formed by Member Cities;
3. Provide loss prevention, safety, and security services;
4. Provide all program services as required by program Master Plan Documents;
5. Provide loss analysis control by use of statistical analysis, data processing, and record and file keeping services. The purpose of this information is to identify high exposure operations and to evaluate proper levels of self-retention and deductibles;
6. Conduct risk management audits to review the participation of each Member City in the program; and
7. Perform other functions as required by the Board for the purpose of accomplishing the goals of this Agreement.
Joint Powers Agreement Page 10 Amended and Restated July 1, 2025
ARTICLE XVIII
RESPONSIBILITIES OF MEMBER CITIES
The Member Cities have the following responsibilities:
1. Pay all financial obligations to the Authority within the time prescribed;
2. Appoint an individual to be responsible for coordinating the risk management activities of his/her Member City with the Authority;
3. Conduct its operations in a manner which enhances safety and loss control consistent with recommendations by Authority staff;
4. Carry out the duties and responsibilities as assigned or mandated by the Board of Directors and/or the Executive Committee which may include, but are not limited to, adherence to and/or adoption of policies and procedures, support of initiatives deemed necessary for the proper functioning of the Authority, and timely execution of tasks deemed necessary for the operation and governance of the Authority;
5. Report to the risk manager during the development stages the addition of new programs or the significant reduction or expansion of existing programs;
6. Permit and assist the Authority in conducting on-site safety and loss control inspections and/or safety or risk management audits as required by the Board;
7. Submit underwriting information requested by the Authority on a timely basis;
8. Provide accurate statistical data concerning the Member City to the Authority when requested;
9. Cooperate fully with the Authority in determining the cause of losses and in the settlement of losses;
10. Cooperate to the fullest extent with the Authority's Litigation Manager on matters of claims and the conduct of defense of claims; and
11. Comply with risk management requirements established under the authority of this Agreement.
ARTICLE XIX
WITHDRAWAL
Any Member City, at their sole discretion, may voluntarily withdraw from membership in the Authority only at the end of any fiscal year by notifying the Authority in writing six (6) months prior to the end of any fiscal year, or at any other time which is agreed to by the Board, unless otherwise prohibited in the Master Plan Document of any program. A notice of withdrawal shall be final and irreversible upon its receipt by the Authority unless the Board authorizes it to be rescinded by the Member City.
Joint Powers Agreement Page 11 Amended and Restated July 1, 2025
ARTICLE XX
INVOLUNTARY TERMINATION
A Member City may be removed from this Agreement by a two-thirds (2/3rds) vote of the Board for non-compliance with any provision of the governing documents. Such involuntary termination shall proceed in accordance with the provisions set forth in the Bylaws.
ARTICLE XXI
CONTINUED LIABILITY
Upon any withdrawal or involuntary termination of a Member City, the said Member City shall continue to be responsible for any unpaid insurance premiums, deposit premiums, surcharges, administration costs, and claims and for any debts and assessments in accordance with the provisions of this Agreement, the Bylaws, Resolutions, and the Master Plan Documents of Joint Protection Programs in which the Member City has participated.
ARTICLE XXII
REFUNDS UPON WITHDRAWAL OR INVOLUNTARY TERMINATION
In the event a Member City withdraws from the Authority or its membership is involuntarily terminated, said Member City shall thereafter be entitled to receive its unobligated share of monies held by the Authority, less any and all amounts owed the Authority whether contingent or not, by the said withdrawing or terminated Member City. The remainder of any funds held by the Authority for the withdrawing or terminating Member City subject to any retention amount as provided below, shall be the unobligated share and shall be refunded to the Member City and shall be accepted in full settlement and satisfaction against any claims the Member City may have against the Authority. The Authority shall require that sufficient funds are retained on deposit with the Authority to completely pay any and all unpaid insurance premiums, deposit premiums, surcharges, administration costs, or claims, including any amounts for unreported claims and maturity of claims against said withdrawing or terminating Member City, and the amount to be retained on deposit shall be determined by the Authority. Any and all rights, entitlements, benefits, and obligations after withdrawal or termination shall be subject to ongoing obligations and responsibilities agreed to by a Member City by agreeing to participate in any pooled Joint Protection Programs.
ARTICLE XXIII
TERMINATION OF AUTHORITY
The Authority may be terminated at any time if two-thirds (2/3rds) of the respective city councils of the then-Member Cities adopt a resolution requesting termination of the Authority; provided, however, that this Joint Powers Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, concluding any pending litigations, for the liquidation and distribution of assets, and for all other functions necessary to conclude the affairs of the Authority.
Joint Powers Agreement Page 12 Amended and Restated July 1, 2025 The Board shall take whatever action is necessary or appropriate to cause these ongoing responsibilities to be discharged and to effectively close out the affairs of the Authority. Upon completion of the liquidation and dissolution of the Authority, the Authority shall pay to each city which was a member of the Authority at the time of termination its pro rata share based on a city's contribution to the Authority, as determined by an independent Certified Public Accountant which has audited the financial records of the Authority, of the remaining assets of the Authority and shall pay to each Member City all monies held by the Authority in the reserve funds of that Member City.
ARTICLE XXIV
AUDIT
The Authority shall obtain an annual certified audit of its accounts and financial records which shall be made by a Certified Public Accountant and shall conform to generally accepted auditing standards.
ARTICLE XXV
ARBITRATION
Any controversy between the parties hereto arising out of this Agreement shall be submitted to arbitration, and such arbitration shall comply with and be governed by the provisions of the California Arbitration Act, Sections 1280 through 1294.2 of the California Code of Civil Procedure.
ARTICLE XXVI
BINDING EFFECT OF BYLAWS, MASTER PLAN DOCUMENTS,
AND MEMORANDA OF COVERAGE
Each party to this Agreement by the execution hereof agrees to be bound by and to comply with all of the terms and conditions of this Agreement, the Bylaws, the Master Plan Documents, Memoranda of Coverage, and any resolution adopted by the Authority, the Board of Directors, or the Executive Committee as they now exist or may hereafter be adopted or amended.
ARTICLE XXVII
ENFORCEMENT
The Authority is hereby granted authority to enforce this Agreement. In the event action is instituted by the Authority to enforce any term of this Agreement, the Bylaws, or the Master Plan Document of any program against any Member City, the prevailing party shall be entitled to reasonable attorney fees and costs incurred because of said action, in addition to other appropriate relief.
Joint Powers Agreement Page 13 Amended and Restated July 1, 2025
ARTICLE XXVIII
AMENDMENTS
This Agreement may be amended by written resolution approved and signed by two-thirds (2/3rds) of the respective city councils of the Member Cities that are parties to this Agreement. Upon signature of any amendment by two-thirds (2/3rds) of the Member Cities, any Member City failing or refusing to abide by such amendment may be involuntarily terminated as a party to this Agreement as provided herein.
ARTICLE XXIX
NOTICES
Notices under this Agreement shall be sufficient if delivered to the office of the Clerk or Secretary of the respective jurisdictions.
ARTICLE XXX
COUNTERPARTS
This Agreement may be executed in one or more counterparts and shall be as fully effective as though executed in one document.
Dated:
MEMBER CITY
BY:
RESOLUTION APPROVING AMENDMENT TO JOINT POWERS AGREEMENT OF THE
CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY
WHEREAS, the CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY (CSJVRMA) is a California Joint Powers Authority created and operated pursuant to California Government Code 6500 et. seq. for the purpose of pooling funds to provide coverage for indemnification and defense and to purchase excess insurance for certain civil claims involving general liability, workers’ compensation, and property damage; WHEREAS, the City of ____ is authorized pursuant to California Government Code 990.8 to enter into a Joint Powers Agreement for the purposes described above; WHERAS, the City of ____ is a member of the CSJVRMA;
WHEREAS, the Joint Powers Agreement which was created establishing the CSJVRMA allows for amendment of the agreement upon approval by the City Council of two thirds of the members of the CSJVRMA;
WHEREAS, the CSJVRMA desires to amend the Joint Powers Agreement as set forth in the Agreement dated July1, 1994, and as amended July 1, 2025, a copy of which is attached hereto and incorporated herein;
The City hereby resolves:
IT IS HEREBY RESOLVED that the City Council of ______________________ __________________________ approves the Central San Joaquin Valley Risk Management Authority Joint Powers Agreement, dated July 1, 1994, as amended and restated on July 1, 2025, and in the form as attached hereto, and it is FURTHER RESOLVED that the City Manager/Administrator is authorized and directed to execute such agreement.
The forgoing resolution was adopted this _____ day of ___________, 20__ by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
MAYOR/CITY MANAGER
ATTEST:
_______________________________________
CITY CLERK
REPORT TO THE CITY COUNCIL
Item 3.6
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TO RETURN TO
THE AGENDA
Meeting of: August 12, 2025
AGENDA SECTION: Consent
SUBJECT: A City Council Resolution Approving Applications for Transportation Development Act (TDA) Funds for Fiscal Year 2025/2026 and Authorizing the City Administrator or Designee to Execute and Submit Applications to the Madera County Transportation Commission
PREPARED BY: Robin Roman, Transit Supervisor
APPROVED BY: Joann McClendon, City Clerk
ATTACHMENTS: Resolution, TDA Allocation Applications
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Staff recommends that Council approve the resolution (a) approving applications for FY 2025/2026 TDA Local Transportation (LTF) and State Transit Assistance (STA) funds; and (b) authorizing the City Administrator or Designee to execute the applications for submittal to the Madera County Transportation Commission (MCTC) for adoption.
BACKGROUND:
The State Controller annually approves LTF and STA apportionments by the county pursuant to the Transportation Development Act (TDA). MCTC allocates these funds to local agencies based on each jurisdiction’s percentage share of the total County population. Annually, local agencies are required to submit applications for approval to MCTC. The applications may be amended, as needed.
REASON FOR RECOMMENDATION:
LTF funds are programmed for public transit services; pedestrian and bicycle facilities and street and road maintenance and construction projects. Transit must be fully funded consistent with the MCTC annual Unmet Transit Needs findings, as transit has priority use of these funds. A mandatory 2% is allocated for pedestrian and bicycle facilities and 3% for transportation planning. The remaining balance may be expended on street maintenance and construction projects. STA funds may be used only for public transit purposes, including operating and capital projects.
MCTC requires Council approval prior to the submittal of LTF and STA applications. The FY 2025/2026 LTF and STA applications have been prepared, as attached, reflecting the proposed use of these funds.
The City’s total FY 2025/2026 LTF allocation is $589,513 (compared to $586,466 in 24/25); and, $172,226 for STA (compared to $204,299 in 24/25). The LTF and STA applications specify the proposed expenditures of these funds.
FISCAL IMPACT:
The City’s total FY 2025/2026 allocation for LTF is $589,513 and $172,226 for STA, and is included in the budget. The Grand Total for Transportation Development Act (TDA) is $761,739.
ALTERNATIVES:
None.
ACTIONS FOLLOWING APPROVAL:
Upon signatures, City Clerk to return the documents to Robin Roman, Transit Supervisor.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
APPROVING APPLICATIONS FOR TRANSPORTATION DEVELOPMENT ACT FUNDS FOR FISCAL YEAR 2025/2026,
AND AUTHORIZING THE CITY ADMINISTRATOR OR DESIGNEE TO EXECUTE AND
SUBMIT APPLICATIONS TO THE MADERA COUNTY TRANSPORTATION COMMISSION WHEREAS, Transportation Development Act Local Transportation Funds (LTF) and the State Transit Assistance (STA) funds are annually allocated by Madera County Transportation Commission (MCTC) pursuant to the TDA; and,
WHEREAS, the City of Chowchilla prepares the applications outlining the intended uses for the STA funds each year and the application may be amended as needed; and, WHEREAS, the LTF and STA application for FY 2025/26 that describes the intended uses of these funds have been submitted to Council for review and approval.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines, and declares the following:
1. The above recitals are true and correct.
2. The Fiscal Year 2025/2026 applications for Transportation Development Act Local Transportation Funds and State Transit Assistance Funds, as allocated to the City of Chowchilla by the Madera County Transportation Commission, are approved.
3. The City Administrator or designee is authorized to execute the applications and submit them to the Madera County Transportations Commission for adoption.
4. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of August 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
Line
1 Project Year (FY)
2 Claimant
3 Address
4 Contact Person Title
5 Telephone Number
6 The above named claimant hereby applies for allocations of Transportation Development Act funds for FY 2025-26 for the purposes and in the amount(s) specified below:
7 $ 17,685.00
8 Pedestrian & Bikeway Facilities (PUC 99234) $ 11,790.00 9 Article 4 Transit (PUC 99260) $ 152,660.00
10 Article 4.5 Community Transit (PUC 99275)
11 Article 8a Streets & Roads (PUC 99400a) $ 407,378.00 12 Article 8b Rail (PUC 99400b)
13 Article 8c Transit Contracts (PUC 99400c)
14 TOTAL LTF $ 589,513.00
15 Transportation Planning $ -
16 Mass Transportation $ 172,226.00
17 TOTAL STA $ 172,226.00
18 TOTAL TRANSPORTATION DEVELOPMENT ACT APPLICATION $ 761,739.00 (add lines 14 and 17)
19 By:
20 Title:
21 Date:
22 Signed:
Chief Financial Officer
23 Name:
24 Title:
Approved by MCTC:
FORM A
Authorized Official Date
130 S Second Street
MADERA COUNTY TRANSPORTATION COMMISSION
TRANSPORTATION DEVELOPMENT ACT APPLICATION SUMMARY - FORM A (All claimants must complete this document)
2025-26
City of Chowchilla
I hereby attest to the reasonableness and accuracy of the financial statements included in Documents D, E, & F. (Sec. 6632)
Joann McClendon City Clerk
559 665-8615 x 102
Purpose
Local Transportation Fund
Regional Transportation Planning (PUC 99262 & 99402)
State Transit Assistance
Claimant acknowledges that payment by the County Auditor of an allocation made by MCTC is subject to such monies being on hand and available for distribution and to the provision that such moneys be used only in accordance with the terms of the allocation instruction issued by MCTC.
City Clerk
Kerri Williams
Finance Director
Reference: CCR Section 6630
2025-26
Transportation Services, Section 99260 (Article 4):
1. Name of Service: $ 152,660.00
2. Name of Service: $
TOTAL: $ 152,660.00
Transportation Services, Section 99400 (b,c,d) (Article 8):
$
$
$
$
TOTAL: $ -
Pedestrian and Bicycle Facilities, Section 99234 (Article 3):
1. $ 11,790.00
2. $
3. $
TOTAL: $ 11,790.00
Transportation Planning Services, Pedestrian and Bicycle Facility Construction, and Street and Road
MADERA COUNTY TRANSPORTATION COMMISSION
Application for Transportation Development Act Funds - Form A.1 Local Transportation Fund (LTF)
Fiscal Year
Applicant Agency and Project Manager:
Joann McClendon
This form is to be used when making an application to use LTF funds for Public Transportation Services, Projects. All projects submitted must be included in the Regional Transportation Plan. MCTC is required to make a finding that "No unmet public transportation needs exist" in the county before this application can be approved.
FUNDING REQUEST:
CATX
1. Name of Service, Contractor:
2. Name of Service, Contractor:
3. Name of Service, Contractor:
4. Name of Service, Contractor:
Project Name, if applicable
Pedestrian/Bicycle Facilities
05-25 -LTF Application
Form A.1
$ 17,685.00
$
$
TOTAL: $ 17,685.00
$
GRAND TOTAL: $ 182,135.00
Date
Note:
TDA funds may be used to cover actual expenses during the fiscal year of the application only. Should carryover funds occur, MCTC should be notified Additional planning project or contracted transportation planning work MCTC TDA (LTF) Application Form
Transportation Planning Services, Section 99402 (Article 8):
MCTC regional transportation planning activities on behalf of member agencies Local Agency transportation planning activities (or Contracted Services) Street and Road Projects, Section 99402 (Article 8):
Article 8 Funds Requested for Street & Road Projects
Submitted By:
Signature of Local Official, Title
Date
Approved by MCTC:
Authorized Official
05/25 -LTF Application
Form A.1
2025-26
$ 172,226.00
$
$
$
$
TOTAL: $ 172,226.00
MCTC transit planning activities on behalf of member agencies. $ Local Agency transportation planning activities (or Contract Services) $ Additional planning project or contracted transportation planning work $ TOTAL: $ -
SUMMARY of PROPOSED EXPENDITURES
Transportation Services $ 172,226.00
Transportation Planning Services $ -
GRAND TOTAL: $ 172,226.00
Date
Note:
Joann McClendon
MADERA COUNTY TRANSPORTATION COMMISSION
Application for Transportation Development Act Funds - Form A.2 State Transit Assistance (STA)
Fiscal Year
Applicant Agency and Project Manager:
This form is to be used when making an application to use STA funds for Transportation Services and Transportation Planning. All projects submitted must be included in the Regional Transportation Plan.
FUNDING REQUEST:
Transportation Services:
1. Name of Service, Contractor: CATX
2. Name of Service, Contractor:
3. Name of Service, Contractor:
4. Name of Service, Contractor:
05-25 -STA Application
5. Name of Service, Contractor:
Transportation Planning Services:
Submitted By:
Signature of Local Official, Title
Approved by MCTC:
Authorized Official
TDA funds may be used to cover actual expenses during the fiscal year of the application only. Should carryover funds occur, MCTC should be notified Form A.2
REPORT TO THE CITY COUNCIL
Item 4.1
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: Tuesday, August 12, 2025
AGENDA SECTION: Public Hearing
SUBJECT: PUBLIC HEARING AND RELATED FORMATION AND ELECTION PROCEEDINGS IN THE ESTABLISHMENT OF CFD NO. 2025-1 (RANCHO
CALERA), INCLUDING AUTHORIZATION TO LEVY SPECIAL TAXES IN THE CFD AND INCUR BONDED INDEBTEDNESS.
PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: ITEM 1: Public Hearing – Hearing Report attached ITEM a: Resolution Establishing CFD No. 2025-1
ITEM b: Resolution Calling Election
ITEM c: Resolution Declaring Results of Election
ITEM d: Special Tax Ordinance for First Reading
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That the City Council proceed with the establishment of CFD No. 2025-1 (Rancho Calera) (“CFD No. 2025- 1”), by (1) conducting a public hearing on the matters set forth in the Resolution of Intention (Resolution # 46-25); (a) adopting Resolution Establishing CFD No. 2025-1; (b) adopting Resolution determining the necessity to incur bonded indebtedness of CFD No. 2025-1 and calling an election on the propositions set forth therein; (c) adopting Resolution declaring the results of the election; and (d) conducting a first reading of the Special Tax Ordinance for CFD No. 2025-1.
BACKGROUND:
On June 24, 2025, the City Council adopted its Resolution #46-25 declaring its intention to establish CFD No. 2025-1 in order to finance public facilities (“Facilities”) to serve Rancho Calera, thereby commencing proceedings for the establishment of CFD No. 2025-1.
In order to continue such proceedings, the City Council will now conduct the public hearing on the matters set forth in Resolution #46-25, which public hearing was duly noticed.
Following the public hearing, if no majority protest has been submitted, the City Council will close the hearing and then will consider and adopt its Resolution which establishes CFD No. 2025-1 and approves the Rate and Method of Apportionment specifying how the Special Taxes will be levied and the list of Facilities authorized to be funded.
Following the adoption of the Resolution establishing CFD No. 2025-1, the City Council will consider and adopt its Resolution determining the necessity to incur bonded indebtedness for CFD No. 2025-1 and calling a special landowner election on the propositions set forth therein, including the questions of levying special taxes, authorizing the issuance of up to $30,000,000 of bonds, and establishing an appropriations limit.
Because the property owners have waived the waiting periods and other requirements related to the election, as permitted by law, the special landowner election will be conducted immediately. Upon the City Clerk’s determination of election results, the City Council will consider and adopt its Resolution declaring the results of the election.
Finally, the City Counsel will conduct a first reading of its Special Tax Ordinance levying and apportioning special taxes within CFD No. 2025-1.
REASON FOR RECOMMENDATION:
Formation of CFD No. 2025-1 and the authorization by the landowners to issue the bonds and levy the Special Tax, will partially fund necessary infrastructure to serve the Rancho Calera development.
FISCAL IMPACT:
There is no fiscal impact for the formation of the CFD. All cost associated with the formation are paid for by the Rancho Calera development. There will be an administrative amount collected in the assessments for the City to administer the CFD.
ALTERNATIVES:
Do not approve the formation of the CFD
ACTIONS FOLLOWING APPROVAL:
After the Council’s first reading of the Special Tax Ordinance, the ordinance will be considered and adopted at a future meeting of the City Council, on August 26, 2025. Following its adoption, the Special Tax Ordinance will be published in a newspaper of general circulation as required by law.
Prepared by:
Report for:
Community Facilities District No. 2025-1
(Rancho Calera Facilities)
Special Tax Report
August 2025
Prepared by NBS for and on behalf of the City of Chowchilla
TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................... 1 CFD INFORMATION ................................................................................................................ 2 Location ............................................................................................................................... 2 Proposed Land Use .............................................................................................................. 2 CFD Boundary Description .................................................................................................. 2 DESCRIPTION OF AUTHORIZED FACILITIES .............................................................................. 3 COST ESTIMATE ..................................................................................................................... 4 Initial Maximum Amount Proposed to be Expended .......................................................... 4 Anticipated Fiscal Year 2026/27 Maximum Special Tax Revenue ...................................... 4 Annual Maximum Special Tax Escalation ............................................................................ 5 RATE AND METHOD OF APPORTIONMENT ............................................................................. 6 Term of Special Tax ............................................................................................................. 6 Manner of Collection ........................................................................................................... 6 APPENDIX A: BOUNDARY MAP .............................................................................................. 7 APPENDIX B: RATE AND METHOD OF APPORTIONMENT......................................................... 8 City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 1
INTRODUCTION
The City Council (the “City Council”) of the City of Chowchilla (the “City”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), on June 24, 2025, adopted Resolution # 46-25 entitled “Resolution of the City Council of the City of Chowchilla, California Declaring Its Intention to Establish Community Facilities District No. 2025-1 (Rancho Calera), to Authorize the Levy of Special Taxes Therein, and to Incur a Bonded Indebtedness to Pay for Certain Public Facilities” (the “Resolution of Intention”). In the Resolution of Intention, the City Council directed the study and filing of a public hearing report (the “Report”) required by Section 53321.5 of the Act for the proposed City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera Facilities) (the “CFD”).
Section 53321.5 of the Act provides that the Report contain the following:
1. A brief description of the public facilities or services to be provided by the CFD; and
2. An estimate of the fair and reasonable cost of providing the public facilities or services, including the incidental expenses in connection therewith, any City administration costs, and all other related costs.
For particulars, reference is made to the Resolution of Intention for the CFD, as previously adopted on June 24, 2025, by the City Council.
NOW, THEREFORE, the City Administrator of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit this Report containing the following information:
CFD INFORMATION. Information related to the CFD, including background information, land use plans, and the proposed boundaries that include those properties and parcels on which special taxes may be levied to pay for the costs and expenses of the facilities or services. DESCRIPTION OF FACILITIES OR SERVICES. A description of the facilities or services that the City Council has determined to be eligible to be funded by the CFD. COST ESTIMATE. The initial maximum cost estimate for the CFD facilities or services and the anticipated initial maximum special tax revenue.
RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax, which was included in the Resolution of Intention and approved by this City Council on June 24, 2025.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 2
CFD INFORMATION
Location
The CFD is generally located north of East Robertson Boulevard and east of State Route 99. The CFD includes three properties covering approximately 137.16 acres.
Proposed Land Use
At buildout, there is anticipated to be 403 Units of Single Family Residential Property, 200 Units of Apartment Property, and 261,000 Building Square Feet of Non-Residential Property within the CFD.
CFD Boundary Description
The proposed boundaries of the CFD are those parcels in which special taxes may be levied and collected to pay for the costs and expenses of the CFD facilities. The proposed boundaries of the CFD are identified on the map of the CFD recorded on July 3, 2025, in Book 5 at Page 88 of Maps of Assessment and Community Facilities Districts as Document No. 2025013861 in the office of the County Recorder for the County of Madera. The CFD map is on file with the City Clerk, to which reference is hereby made and a reduced copy of such map is set forth in Appendix A of this Report.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 3
DESCRIPTION OF AUTHORIZED FACILITIES
These facilities are local and regional public improvements designed to serve development in the CFD.
Authorized Facilities: The proposed types of facilities and costs to be financed by the CFD include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of certain roadways and roadway improvements, hiking and biking trails, storm drains and basins, water and wastewater facilities (including, without limitation, domestic and non-domestic water facilities, pre-treatment basins, infiltration basins, reservoirs, pipelines, storm and sewer drains and related infrastructure and improvements), wet and dry utilities, parks, traffic signals, public service facilities and equipment, and related infrastructure improvements, both onsite and offsite, and all appurtenances and appurtenant work in connection with the foregoing (including utility line relocations and electric, gas and cable utilities) (the “Facilities”), and the incidental expenses to be incurred, as further described below.
Other Expenses of the CFD
In addition to the above authorized facilities, other incidental expenses as authorized by the Mello-Roos Community Facilities Act of 1982, including, but not limited to, the cost of planning and designing the facilities (including the cost of environmental evaluation and environmental remediation); engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the public facilities; costs of project/construction management; costs (including the costs of legal services) associated with the creation of CFD No. 2025-1; costs associated with the issuance of bonds; determination of the amount of taxes, collection of taxes; payment of taxes; or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2025-1; reimbursements to other areas for infrastructure facilities serving CFD No. 2025-1; and any other expenses incidental to the formation and implementation of CFD No. 2025-1 and to the construction, completion, inspection and/or acquisition of the authorized facilities.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 4
COST ESTIMATE
Initial Maximum Amount Proposed to be Expended
The annual budget for the CFD presented below represents the initial maximum costs for financing CFD facilities as well as the estimated costs for Fiscal Year 2026/27.
CFD Costs
2026/27
Maximum
Budget
Amount
2026/27
Estimated
Budget
Amount
Debt Service/Administrative Expenses/Pay-As-You-Go-Expenditures $1,200,872 $1,200,872 Total: $1,200,872 $1,200,872
Anticipated Fiscal Year 2026/27 Maximum Special Tax Revenue The initial maximum annual special tax rates are set forth in the Rate and Method of Apportionment for the CFD. Based upon expected development, the initial maximum annual special tax revenue is as follows:
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2026/27
Description
Building Square
Feet
Assigned
Special Tax Per
Maximum
Annual Special
Tax Revenue
Single Family Residential Property >= 3,300 SF $2,572.00 Unit $20,576 Single Family Residential Property 3,000 - 3,299 SF $2,420.00 Unit 48,400 Single Family Residential Property 2,700 - 2,999 SF $2,269.00 Unit 90,760 Single Family Residential Property 2,400 - 2,699 SF $2,117.00 Unit 171,477 Single Family Residential Property 2,100 - 2,399 SF $1,965.00 Unit 182,745 Single Family Residential Property 1,800 - 2,099 SF $1,814.00 Unit 146,934 Single Family Residential Property 1,500 - 1,799 SF $1,662.00 Unit 66,480 Single Family Residential Property < 1,500 SF $1,510.00 Unit 60,400 Apartment Property >= 1,000 SF $1,358.00 Unit 135,800
Apartment Property < 1,000 SF $1,207.00 Unit 120,700
Accessory Dwelling Unit N/A 0.00 Unit 0
Non-Residential Property N/A 0.60 BSF 156,600
Total $1,200,872
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 5 Annual Maximum Special Tax Escalation
On each July 1, commencing on July 1, 2027, the Assigned Special Tax for Developed Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 6
RATE AND METHOD OF APPORTIONMENT
All of the property located within the CFD, unless exempted by law or by the Rate and Method of Apportionment, shall be taxed for the purpose of providing the necessary facilities for the CFD. Pursuant to Section 53325.3 of the Act, the tax imposed "is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." The special tax "may be based on benefit received by parcels of real property, the cost of making facilities available to each parcel, or other reasonable basis as determined by the legislative body," although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.
As shown in Appendix B, the Rate and Method of Apportionment provides information sufficient to allow each property owner to estimate the maximum special tax that he or she will be required to pay.
Term of Special Tax
The special tax shall be levied and collected as needed to fund the annual special tax requirement for up to 40 years from the initial levy of the special tax. In any event no special tax shall be levied for the CFD after the 2065/66 Fiscal Year.
Manner of Collection
The special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, that the administrator of the CFD may directly bill the special tax, may collect the special tax at a different time or in a different manner if needed to meet the financial obligations of the CFD. The City may covenant to foreclose and may actually foreclose or cause an action for foreclosure to be prosecuted in respect of Assessor' s Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 7 APPENDIX A: BOUNDARY MAP
The boundary map for the CFD is shown on the following page. The lines and dimensions of each lot or parcel within the CFD are those lines and dimensions shown on the maps of the County Assessor, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) 8 APPENDIX B: RATE AND METHOD OF APPORTIONMENT
The following pages provide a copy of the CFD’s Rate and Method of Apportionment approved by the City Council on June 24, 2025, via Resolution # 46-25.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(RANCHO CALERA FACILITIES)
A Special Tax, as hereinafter defined, shall be levied and collected within the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera Facilities) (“CFD No. 2025-1”) each Fiscal Year commencing in Fiscal Year 2026/27, in an amount determined by the application of the procedures below. All Taxable Property within CFD No. 2025-1, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in California Government Code Section 66313, as may be amended from time to time, that is accessory to a primary Unit. "Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map.
In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by using available spatial data and GIS. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 2025-1 including, but not limited to, the following: the costs of any paying agents/fiscal agents/trustees related to CFD No. 2025-1 Bond payments (including the fees and expenses of related counsel); the costs of computing the Annual Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements associated with applicable federal and state securities laws, or otherwise related to CFD No. 2025-1 or CFD No. 2025-1 Bonds; the City’s annual administration fees and third party expenses; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax or interpretation of this Rate and Method of Apportionment of Special Taxes; amounts needed to pay any required arbitrage rebate to the federal government related to CFD No. 2025-1 Bonds; the costs associated with the release of funds from any escrow account; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in CFD No. 2025-1.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-1 for any other administrative purposes of CFD No. 2025-1. "Annual Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2025-1 to (1) pay Debt Service on all Outstanding CFD No. 2025-1 Bonds due in the Debt Year that commences in City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 2 such Fiscal Year; (2) pay Debt Service on Bonds expected to be issued on behalf of CFD No. 2025-1 due in the Debt Year that commences in such Fiscal Year; (3) Administrative Expenses; (4) provide any amount required to establish or replenish a reserve fund in connection with any CFD No. 2025-1 Bonds; (5) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4); and (6) account for Pay-As-YouGo Expenditures for the Authorize Facilities. The amounts referred to in clauses (1) through (5) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) surplus balances in funds and accounts for CFD No. 2025-1 Bonds to the extent that such balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding CFD No. 2025-1 Bonds or other indebtedness as determined by the CFD Administrator. “Apartment Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for the purpose of constructing more than one Unit on a Residential Lot. “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, Building Square Footage, and Units.
"Assessor’s Parcel" or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Assigned Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 2025-1 Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for CFD No. 2025-1. "Backup Special Tax" means the Backup Special Tax applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with the applicable subsection of Section C below. “Building Permit” means a permit issued by the City for new construction of a residential or nonresidential building on an Assessor’s Parcel. “Building Square Feet” or “BSF” means all of the square footage of living area within the perimeter of a structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area.
The determination of Building Square Feet shall be made by reference to the building permit(s) issued for such residential dwelling unit. In the event that the building permit does not show Building Square Feet, other records of the City or Assessor’s Data shall be used as determined by the CFD Administrator.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 3 "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes. "CFD No. 2025-1" means City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera Facilities), established by the City Council pursuant to the Act. “CFD No. 2025-1 Bonds” or “Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the City for CFD No. 2025-1 under the Act, and secured by pledge of the Special Taxes.
“City” means the City of Chowchilla, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2025-1. "County" means the County of Madera, California.
“Debt Service” means for each Debt Year, the total amount of principal and interest due on any Outstanding CFD No. 2025-1 Bonds.
“Debt Year” means the twelve (12) month period ending on the second Debt Service payment date of each calendar year.
"Developed Property" means, in any Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner’s Association Property, for which a Building Permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. "Development Class" means, individually, Developed Property, Final Map Property, Taxable Property Owner’s Association Property, Taxable Public Property, and Undeveloped Property. “Exempt Property” means all property located within the boundaries of CFD No. 2025-1 which is exempt from the Special Tax pursuant to the Act or Section E below. “Final Map Property” means, in any Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Property Owner’s Association Property, and Taxable Public Property, for which a Final Subdivision Map had recorded prior to June 30 of the preceding Fiscal Year. "Final Subdivision Map" means a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285, that creates individual lots for which Building Permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the following June 30. “GIS” or “Geographic Information System” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 2025-1 Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 in Section C herein.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 4 "Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Non-Residential Property” means, in any Fiscal Year all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for a structure intended for non-residential use. “Outstanding CFD No. 2025-1 Bonds” means all CFD No. 2025-1 Bonds which are outstanding under and in accordance with the provisions of the Indenture.
“Pay-As-You-Go Expenditure” means Special Tax revenue, which is used or set aside to pay directly for Authorized Facilities, including for Authorized Facilities to be constructed or acquired on behalf of CFD No. 2025-1. Pay-As-You-Go Expenditures may be included in the Special Tax Requirement for 15 years, beginning in Fiscal Year 2026/27 and ending after Fiscal Year 2040/41. Special Taxes for Pay-As-You-Go Expenditures may only be levied against Developed Property. “Property Owner’s Association” or “POA” means any duly constituted property owner’s association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or sub-association or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of CFD No. 2025-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as Property Owner’s Association Property. "Proportionately" means, for each Development Class, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Parcels assigned to such Development Class.
“Public Property” means any property within the boundaries of CFD No. 2025-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 2025-1.
“Residential Lot” means an individual residential lot within a recorded Final Subdivision Map on which a Building Permit has been or is permitted to be issued for construction of one or more Units. “Single Family Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for the purpose of constructing one Unit on a Residential Lot. "Special Tax(es)" means the special tax or special taxes to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 2025-1 to fund the Annual Special Tax Requirement. "State" means the State of California.
"Taxable Property" means all the Assessor’s Parcels within the boundaries of CFD No. 2025-1 that are not exempt from the Special Tax pursuant to law or Section E below.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 5 “Taxable Property Owner’s Association Property” means all Assessors Parcels of Property Owner’s Association Property that are not exempt pursuant to Section E herein. “Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt pursuant to Section E herein.
"Trustee" means the trustee or fiscal agent or paying agent acting as such under the applicable Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, Taxable Property Owner’s Association Property, or Taxable Public Property. “Unit” means an individual single family detached residential unit or an individual residential unit within an apartment building, duplex, triplex, fourplex, townhome or condominium structure. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2025- 1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of the first series of CFD No. 2025-1 Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2025-1 for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the appropriate Development Class for each Parcel of Taxable Property; (ii) the number of BSF, Units or Acreage each Parcel contains; (iii) the Land Use Class; and (iv) the Annual Special Tax Requirement for the Fiscal Year.
C. MAXIMUM SPECIAL TAX RATES
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 6 a. Assigned Special Tax
The Assigned Special Tax rates for each Assessor’s Parcel of Developed Property are shown in Table 1.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2026/27
Land Use
Class Description Building Square Feet
Assigned
Special Tax Per
1 Single Family Residential Property >= 3,300 SF $2,572.00 Unit 2 Single Family Residential Property 3,000 - 3,299 SF $2,420.00 Unit 3 Single Family Residential Property 2,700 - 2,999 SF $2,269.00 Unit 4 Single Family Residential Property 2,400 - 2,699 SF $2,117.00 Unit 5 Single Family Residential Property 2,100 - 2,399 SF $1,965.00 Unit 6 Single Family Residential Property 1,800 - 2,099 SF $1,814.00 Unit 7 Single Family Residential Property 1,500 - 1,799 SF $1,662.00 Unit 8 Single Family Residential Property < 1,500 SF $1,510.00 Unit 9 Apartment Property >= 1,000 SF $1,358.00 Unit
10 Apartment Property < 1,000 SF $1,207.00 Unit
11 Accessory Dwelling Unit N/A 0.00 Unit
12 Non-Residential Property N/A 0.60 BSF
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 7 b. Backup Special Tax
The Fiscal Year 2026/27 Backup Special Tax attributable to Developed Property shall be $18,296 per Acre.
c. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2027, the Assigned Special Tax and the Backup Special Tax for Developed Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
d. Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Special Tax levied on an Assessor’s Parcel shall be the sum of the Special Tax for all Land Use Classes located on that Assessor’s Parcel.
2. Final Map Property
The Maximum Special Tax for each Assessor’s Parcel of Final Map Property shall be $18,296 per Acre in Fiscal Year 2026/27.
a. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Special Tax for Final Map Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
3. Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property shall be $18,296 per Acre in Fiscal Year 2026/27.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Special Tax for Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES
Commencing with Fiscal Year 2026/27 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Special Tax Requirement and shall levy the Special Tax until the amount of the Special Tax levied equals the Annual Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property at 100% of the applicable Assigned Special Tax through Fiscal Year 2040/41, after which the Special Tax shall be levied City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 8 Proportionately on each Assessor’s Parcel of Developed Property at a rate up to 100% of the applicable Assigned Special Tax to the extent needed to satisfy the Annual Special Tax Requirement.
Second: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Map Property at a rate up to 100% of the Maximum Special Tax for Final Map Property to the extent needed to satisfy the Annual Special Tax Requirement.
Third: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the second step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property to the extent needed to satisfy the Annual Special Tax Requirement.
Fourth: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first three steps have been completed, then the levy of the Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the applicable Assigned Special Tax up to 100% of the Maximum Special Tax for each such Assessor’s Parcel to satisfy the Annual Special Tax Requirement.
Fifth: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first four steps have been completed, the Special Tax shall be levied on each Assessor’s Parcel of Taxable Property Owner’s Association Property at a rate up to 100% of the Maximum Special Tax for Taxable Property Owner’s Association Property to the extent needed to satisfy the Annual Special Tax Requirement.
Sixth: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first five steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Public Property at a rate up to 100% of the Maximum Special Tax for Taxable Public Property to the extent needed to satisfy the Annual Special Tax Requirement.
E. EXEMPTIONS
1. No Special Tax shall be levied on up to 72.81 Acres of Property Owner’s Association Property and/or Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner’s Association Property, or Public Property. If an Assessor’s Parcel of Taxable Property becomes Property Owner’s Association Property or Public Property after previously being subject to the Special Tax, such property shall be reclassified as either Taxable Property Owner’s Association Property or Taxable Public Property.
2. Property Owner’s Association Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Property Owner’s Association Property. Taxable Property Owner’s Association Property shall be subject to the levy of the Special Tax and shall be taxed City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 9 Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner’s Association Property.
3. Public Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Public Property. Taxable Public Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the sixth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property.
4. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of CFD No. 2025-1 Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct with respect to one or more specific Assessor’s Parcels. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Taxes theretofore levied on the Assessor’s Parcel(s). In addition, during the term of the appeal process, all Special Tax levied must be paid for the subject Assessor’s Parcel(s) prior to delinquency.
The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as once CFD No. 2025-1 Bonds have been issued such correction does not materially adversely affect the levy and collection of Special Taxes on any Assessor’s Parcel needed to repay the CFD No. 2025-1 Bonds.
In addition, the interpretation and application of any section of this document shall be at the CFD Administrator’s discretion.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 10 H. MANNER OF COLLECTION
The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, that the CFD Administrator may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 2025-1. The City may covenant to foreclose and may actually foreclose or cause an action for foreclosure to be prosecuted in respect of Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
I. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section I:
“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 2025-1.
“Buildout” means the state of maximum development of CFD No. 2025-1, based on plans and anticipated development.
"CFD Public Facilities Cost" means $16,300,000 for CFD No. 2025-1, expressed in 2025 dollars, which shall increase by the annual percentage change in the Construction Inflation Index on July 1, 2026 and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be funded by CFD No. 2025-1 under the authorized bonding program for CFD No. 2025-1, or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D.
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record Building Cost Index for the City of San Francisco, measured as of the calendar year which ends in the previous Fiscal Year, but not less than zero percent. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco. "Future Facilities Costs" means, as of the date of prepayment, the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all Previously Issued CFD No. 2025-1 Bonds, which were, at the time of issuance, available to the City for Authorized Facilities, (b) interest earnings on the Improvement Fund actually earned prior to the date of prepayment, and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expenditures. In no case shall the Future Facilities Costs be less than zero.
"Previously Issued CFD No. 2025-1 Bonds" means all Outstanding CFD No. 2025-1 Bonds that have been issued on behalf of CFD No. 2025-1 prior to the date of prepayment.
1. Prepayment in Full
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Map Property, Undeveloped Property, Taxable Property Owner’s Association Property and Taxable Public Property may be prepaid and permanently satisfied as described herein; provided that there are City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 11 no delinquent installments of the Special Tax with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Outstanding CFD No. 2025-1 Bonds is given, if any.
Proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. If a prepayment is made prior to the issuance of CFD No. 2025-1 Bonds, the Redemption Premium, Interest Amount, Reserve Fund Credit and Capitalized Interest Credit as calculated below, shall be zero. The CFD Administrator may charge the property owner requesting a prepayment calculation a fee for providing this service.
The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
Plus Future Facilities Amount
plus Redemption Premium
plus Interest Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
As of the proposed date of prepayment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:
Step Number:
1. Confirm that no Special Tax delinquency apply to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.
2. For Assessor’s Parcels of Developed Property compute and select the greater of the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Map Property and Undeveloped Property to be prepaid, compute and select the greater of the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the expected development for that Assessor’s Parcel. For Assessor’s Parcels of Taxable Property Owner’s Association Property and Taxable Public Property, calculate and select the Maximum Facilities Special Tax.
3. Divide the amount computed pursuant to Step 2 by the total estimated Maximum Special Tax for CFD No. 2025-1 for all property in CFD No. 2025-1 which could be charged in the current Fiscal City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 12 Year on all expected development through Buildout of CFD No. 2025-1 (the “Maximum Special Tax Percentage”).
4. Multiply the Maximum Special Tax Percentage by the Outstanding CFD No. 2025-1 Bonds to compute the principal amount of Outstanding CFD No. 2025-1 Bonds to be redeemed (the “Bond Redemption Amount”).
5. Compute the Future Facilities Costs.
6. Multiply the Maximum Special Tax Percentage by the total Future Facilities Costs to compute the Future Facilities amount to be prepaid (the “Future Facilities Amount”).
7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding CFD No. 2025-1 Bonds to be redeemed (the "Redemption Premium") determined by reference to the Indenture.
8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding CFD No. 2025-1 Bonds (the “Interest Amount”).
9. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding CFD No. 2025-1 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
10. If reserve funds for the Outstanding CFD No. 2025-1 Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding CFD No. 2025-1 Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date or if the Reserve Fund is satisfied by a credit instrument rather than cash funded.
11. If any capitalized interest for the Outstanding CFD No. 2025-1 Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the Maximum Special Tax Percentage by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit").
12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 8 and 9 less the amount computed pursuant to Steps 10 and 11 (the "Special Tax Prepayment Amount").
13. From the Special Tax Prepayment Amount, the amounts computed pursuant to Step 6 shall be used by the City to pay for Future Facilities Costs. The amounts computed pursuant to Steps 4, 6, 7 and 8 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding CFD No. 2025-1 Bonds or make Debt Service payments. The amount City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 13 computed pursuant to Step 9 shall be retained by the City for the payment of Administrative Fees and Expenses.
The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding CFD No. 2025-1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Outstanding CFD No. 2025-1 Bonds or to make Debt Service payments.
Current year Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor's Parcel that is prepaid, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Special Tax and the obligation of such Assessor's Parcel has been satisfied.
Notwithstanding the foregoing, no prepayment will be allowed unless the Maximum Special Tax that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the maximum annual Debt Service on all Outstanding CFD No. 2025-1 Bonds plus annual Administrative Expenses, as reasonably estimated by the CFD Administrator.
2. Prepayment in Part
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Map Property, Undeveloped Property, Taxable Property Owner’s Association Property and Taxable Public Property may be partially prepaid, provided that a partial prepayment may be made only after all authorized CFD No. 2025-1 Bonds have been issued, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of partial prepayment. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula:
PP = PE x F.
These terms have the following meaning:
PP = the partial prepayment
PE = the Special Tax Prepayment Amount calculated according to Section I.1 F = the percentage of the Special Tax Prepayment Amount calculated according to Section I.1 to be prepaid
The Special Tax partial prepayment amount must be sufficient to redeem at least a $5,000 increment of Bonds.
The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within 45 days of the request and may charge a fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the prepayment funds remitted according to Section I.1, and (ii) indicate in the records of CFD No. 2025-1 that there has been a partial prepayment of City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 14 the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D.
J TERM
The Special Tax shall be levied and collected as needed to fund the Annual Special Tax Requirement for up to 40 years from the initial levy of the Special Tax. In any event no Special Tax shall be levied for CFD. No. 2025-1 after the 2065/66 Fiscal Year.
4917-5597-2879
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2025-1 (RANCHO CALERA) AND AUTHORIZING RELATED ACTIONS
WHEREAS, the City Council (the “City Council”) of the City of Chowchilla (the “City”), on June 24, 2025, duly adopted its Resolution #46-25 (the “Resolution of Intention”) (i) declaring its intention to establish the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (“CFD No. 2025-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, Part 1, Division 2, Title 5 (commencing with Section 53311) of the California Government Code) (the “Act”), (ii) proposing to levy a special tax therein (as such tax is more particularly described in Exhibit A hereto) for the purpose of providing for the financing of the design, construction or acquisition of certain public facilities (the “Facilities”) described in Exhibit B hereto, (iii) declaring the necessity of incurring a bonded indebtedness to finance acquisition or construction costs of the Facilities and the incidental expenses thereof, and (iv) calling a public hearing on the establishment of CFD No. 2025-1 and the incurrence of bonded indebtedness; and WHEREAS, before the time for the hearing, as directed in the Resolution of Intention, the City Administrator filed with the City Council the report required by Government Code section 53321.5 (the “Hearing Report”); and
WHEREAS, a notice of the hearing was duly published as required by the Act, as evidenced by the affidavit of publication on file with the City Clerk; and WHEREAS, pursuant to the Act and the Resolution of Intention, a public hearing was convened by the City Council on Tuesday, August 12, 2025, at the hour of 4:00 p.m. at City Hall, 130 S. 2nd Street, Chowchilla, California, on the proposed establishment of CFD No. 2025-1 and the incurrence of bonded indebtedness; and
WHEREAS, at the hearing, the testimony of all interested persons, including all taxpayers, property owners, and registered voters within CFD No. 2025-1, desiring to be heard on the establishment of CFD No. 2025-1, the extent thereof, the furnishing of specified types of public facilities, the proposed special tax, the incurrence of bonded indebtedness, or any other matters set forth in the Resolution of Intention was heard and considered, and a full and fair hearing was held thereon; and
WHEREAS, no written protests against the proceedings described herein were filed or presented by owners of land within CFD No. 2025-1 or registered voters residing in CFD No. 2025-1, before or during the hearing; and
WHEREAS, Prior to the commencement of construction of Facilities to be financed with CFD No. 2025-1 and acquired by the City after construction, the City will enter into one or more acquisition agreements pursuant to the Act, by and between the City and the entity constructing such Facilities; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to establish CFD No. 2025-1.
4917-5597-2879
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chowchilla that:
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Hearing Report. The City Council hereby makes the Hearing Report a part of the record of the hearing.
Section 3. No Majority Protest. The proposed special tax to be levied in CFD No. 2025-1 has not been precluded by majority protest pursuant to Section 53324 of the Act.
Section 4. Establishment and Naming of Community Facilities District. As proposed in the Resolution of Intention, a community facilities district is hereby established pursuant to the Act, designated “City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera).”
Section 5. Finding of Procedural Regularity. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the formation of CFD No. 2025-1 are valid and in conformity with requirements of the Act. The City Council finds and determines that the establishment of CFD No. 2025-1 is consistent with the City’s previously adopted goals and policies for use of the Act (the “Goals and Policies”) and, is such connection, the City Council has waived any provision of such Goals and Policies which may be inconsistent with the purposes of CFD No. 2025-1 as provided herein, including but not limited to the provision of a feasibility study as contemplated in the Goals and Policies.
Section 6. Boundaries of Community Facilities District. The boundaries of CFD No. 2025-1 shall be as set forth in the map of the proposed boundaries of CFD No. 2025-1 that was filed in the office of the County Recorder of the County of Madera on July 3, 2025, in Book 5 of Maps of Assessment and Community Facilities Districts, at Page 88.
Section 7. Description of Facilities. The Facilities to be financed by CFD No. 2025- 1 are set forth in Exhibit B hereto which include completed Facilities. The Facilities have a useful life of five years or longer. The cost of financing the acquisition or construction of the Facilities include “incidental expenses,” which include the cost of planning and designing the Facilities and environmental evaluations thereof; costs associated with the creation of CFD No. 2025-1, issuance of bonds, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2025-1; and any other expenses incidental to the construction, completion and inspection of the Facilities.
Section 8. Repayment of Advances. To the extent proceeds of any bonds issued are sufficient therefor (as determined by the City), the City is authorized to repay a portion of the funds advanced and may also repay the value or cost (whichever is less) of any work-in-kind advanced.
Section 9. Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of CFD No. 2025-1, a special tax sufficient to pay the costs of the Facilities (including incidental expenses and debt service on bonds to finance the Facilities), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2025-1, will be levied annually in CFD No. 2025-1. The 4917-5597-2879
rate, method of apportionment, and manner of collection of the special tax are specified in Exhibit A. Exhibit A specifies the conditions under which the special tax may be prepaid and permanently satisfied. Exhibit A also specifies the year after which no further special tax to pay for the Facilities shall be levied against any parcel of land used for private residential purposes.
Under no circumstances will the special tax levied against any parcel of land used for private residential purposes to pay for the Facilities be increased by more than ten percent (10%) as a consequence of delinquency or default by the owner of any other parcel or parcels of land within CFD No. 2025-1.
Section 10. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Facilities available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.
Section 12. Tax Roll Preparation. The office of the City Administrator, 130 S. 2nd Street, Chowchilla, California 93610, telephone (559) 665-8615, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The City Administrator may cause these functions to be performed by his or her deputies, assistants, or other designated agents.
Section 13. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this Resolution and the map of the boundaries of CFD No. 2025-1 in her office.
Section 14. Lien to Secure Special Tax. Upon a determination by the City Council that two-thirds of the votes cast upon the question of levying the special tax were in favor thereof, the City Clerk shall record the notice of special tax lien provided for in Section 3114.5 of the California Streets and Highways Code. Upon recordation of the notice of special tax lien, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in CFD No. 2025-1, and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien cancelled in accordance with law or until collection of the tax by the City Council ceases.
Section 15. Election. In accordance with the Act, the proposition of the levy of the special tax, the incurrence of bond indebtedness, and the establishment of an appropriations limit for CFD No. 2025-1, shall be submitted to the qualified electors of CFD No. 2025-1, at an election to be hereafter called and specified by separate resolution of the City Council.
Section 16. Appropriations Limit. In accordance with the Act, the appropriations limit (as defined in Subdivision (h) of Section 8 of Article XIII B of the California Constitution) for CFD No. 2025-1 shall be established in the amount of special taxes collected, subject to the approval by the qualified electors of CFD No. 2025-1 at the election described above.
Section 17. CEQA Compliance. The City hereby determines that the proposed establishment of the District is not a “project” as defined in CEQA (see CEQA Guidelines section 15378(b)(4)) and authorizes the City Clerk to file a notice of exemption with the with the 4917-5597-2879
appropriate parties including, but not limited to, the County Clerk and the State Clearinghouse in the Office of Land Use and Climate Innovation.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of August, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
4917-5597-2879 A-1
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(RANCHO CALERA FACILITIES)
[Attached]
4917-5597-2879 B-1
EXHIBIT B
Community Facilities District No. 2025-1
(Rancho Calera)
City of Chowchilla, California
LIST OF AUTHORIZED FACILITIES
These facilities are local and regional public improvements designed to serve development in CFD No. 2025-1.
Authorized Facilities: The proposed types of facilities and costs to be financed by the CFD include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of certain roadways and roadway improvements, hiking and biking trails, storm drains and basins, water and wastewater facilities (including, without limitation, domestic and non-domestic water facilities, pre-treatment basins, infiltration basins, reservoirs, pipelines, storm and sewer drains and related infrastructure and improvements), wet and dry utilities, parks, traffic signals, public service facilities and equipment, and related infrastructure improvements, both onsite and offsite, and all appurtenances and appurtenant work in connection with the foregoing (including utility line relocations and electric, gas and cable utilities) (the “Facilities”), and the incidental expenses to be incurred, as further described below.
Other Expenses of the CFD
In addition to the above authorized facilities, other incidental expenses as authorized by the MelloRoos Community Facilities Act of 1982, including, but not limited to, the cost of planning and designing the facilities (including the cost of environmental evaluation and environmental remediation); engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the public facilities; costs of project/construction management; costs (including the costs of legal services) associated with the creation of CFD No. 2025-1; costs associated with the issuance of bonds; determination of the amount of taxes, collection of taxes; payment of taxes; or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2025-1; reimbursements to other areas for infrastructure facilities serving CFD No. 2025-1; and any other expenses incidental to the formation and implementation of CFD No. 2025-1 and to the construction, completion, inspection and/or acquisition of the authorized facilities.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(RANCHO CALERA FACILITIES)
A Special Tax, as hereinafter defined, shall be levied and collected within the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera Facilities) (“CFD No. 2025-1”) each Fiscal Year commencing in Fiscal Year 2026/27, in an amount determined by the application of the procedures below. All Taxable Property within CFD No. 2025-1, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in California Government Code Section 66313, as may be amended from time to time, that is accessory to a primary Unit. "Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map.
In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by using available spatial data and GIS. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 2025-1 including, but not limited to, the following: the costs of any paying agents/fiscal agents/trustees related to CFD No. 2025-1 Bond payments (including the fees and expenses of related counsel); the costs of computing the Annual Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements associated with applicable federal and state securities laws, or otherwise related to CFD No. 2025-1 or CFD No. 2025-1 Bonds; the City’s annual administration fees and third party expenses; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax or interpretation of this Rate and Method of Apportionment of Special Taxes; amounts needed to pay any required arbitrage rebate to the federal government related to CFD No. 2025-1 Bonds; the costs associated with the release of funds from any escrow account; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in CFD No. 2025-1.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-1 for any other administrative purposes of CFD No. 2025-1. "Annual Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2025-1 to (1) pay Debt Service on all Outstanding CFD No. 2025-1 Bonds due in the Debt Year that commences in City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 2 such Fiscal Year; (2) pay Debt Service on Bonds expected to be issued on behalf of CFD No. 2025-1 due in the Debt Year that commences in such Fiscal Year; (3) Administrative Expenses; (4) provide any amount required to establish or replenish a reserve fund in connection with any CFD No. 2025-1 Bonds; (5) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4); and (6) account for Pay-As-YouGo Expenditures for the Authorize Facilities. The amounts referred to in clauses (1) through (5) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) surplus balances in funds and accounts for CFD No. 2025-1 Bonds to the extent that such balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding CFD No. 2025-1 Bonds or other indebtedness as determined by the CFD Administrator. “Apartment Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for the purpose of constructing more than one Unit on a Residential Lot. “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, Building Square Footage, and Units.
"Assessor’s Parcel" or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Assigned Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 2025-1 Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for CFD No. 2025-1. "Backup Special Tax" means the Backup Special Tax applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with the applicable subsection of Section C below. “Building Permit” means a permit issued by the City for new construction of a residential or nonresidential building on an Assessor’s Parcel. “Building Square Feet” or “BSF” means all of the square footage of living area within the perimeter of a structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area.
The determination of Building Square Feet shall be made by reference to the building permit(s) issued for such residential dwelling unit. In the event that the building permit does not show Building Square Feet, other records of the City or Assessor’s Data shall be used as determined by the CFD Administrator.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 3 "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes. "CFD No. 2025-1" means City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera Facilities), established by the City Council pursuant to the Act. “CFD No. 2025-1 Bonds” or “Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the City for CFD No. 2025-1 under the Act, and secured by pledge of the Special Taxes.
“City” means the City of Chowchilla, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2025-1. "County" means the County of Madera, California.
“Debt Service” means for each Debt Year, the total amount of principal and interest due on any Outstanding CFD No. 2025-1 Bonds.
“Debt Year” means the twelve (12) month period ending on the second Debt Service payment date of each calendar year.
"Developed Property" means, in any Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner’s Association Property, for which a Building Permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. "Development Class" means, individually, Developed Property, Final Map Property, Taxable Property Owner’s Association Property, Taxable Public Property, and Undeveloped Property. “Exempt Property” means all property located within the boundaries of CFD No. 2025-1 which is exempt from the Special Tax pursuant to the Act or Section E below. “Final Map Property” means, in any Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Property Owner’s Association Property, and Taxable Public Property, for which a Final Subdivision Map had recorded prior to June 30 of the preceding Fiscal Year. "Final Subdivision Map" means a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285, that creates individual lots for which Building Permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the following June 30. “GIS” or “Geographic Information System” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 2025-1 Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 in Section C herein.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 4 "Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Non-Residential Property” means, in any Fiscal Year all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for a structure intended for non-residential use. “Outstanding CFD No. 2025-1 Bonds” means all CFD No. 2025-1 Bonds which are outstanding under and in accordance with the provisions of the Indenture.
“Pay-As-You-Go Expenditure” means Special Tax revenue, which is used or set aside to pay directly for Authorized Facilities, including for Authorized Facilities to be constructed or acquired on behalf of CFD No. 2025-1. Pay-As-You-Go Expenditures may be included in the Special Tax Requirement for 15 years, beginning in Fiscal Year 2026/27 and ending after Fiscal Year 2040/41. Special Taxes for Pay-As-You-Go Expenditures may only be levied against Developed Property. “Property Owner’s Association” or “POA” means any duly constituted property owner’s association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or sub-association or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of CFD No. 2025-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as Property Owner’s Association Property. "Proportionately" means, for each Development Class, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Parcels assigned to such Development Class.
“Public Property” means any property within the boundaries of CFD No. 2025-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 2025-1.
“Residential Lot” means an individual residential lot within a recorded Final Subdivision Map on which a Building Permit has been or is permitted to be issued for construction of one or more Units. “Single Family Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for the purpose of constructing one Unit on a Residential Lot. "Special Tax(es)" means the special tax or special taxes to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 2025-1 to fund the Annual Special Tax Requirement. "State" means the State of California.
"Taxable Property" means all the Assessor’s Parcels within the boundaries of CFD No. 2025-1 that are not exempt from the Special Tax pursuant to law or Section E below.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 5 “Taxable Property Owner’s Association Property” means all Assessors Parcels of Property Owner’s Association Property that are not exempt pursuant to Section E herein. “Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt pursuant to Section E herein.
"Trustee" means the trustee or fiscal agent or paying agent acting as such under the applicable Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, Taxable Property Owner’s Association Property, or Taxable Public Property. “Unit” means an individual single family detached residential unit or an individual residential unit within an apartment building, duplex, triplex, fourplex, townhome or condominium structure. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2025- 1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of the first series of CFD No. 2025-1 Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2025-1 for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the appropriate Development Class for each Parcel of Taxable Property; (ii) the number of BSF, Units or Acreage each Parcel contains; (iii) the Land Use Class; and (iv) the Annual Special Tax Requirement for the Fiscal Year.
C. MAXIMUM SPECIAL TAX RATES
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 6 a. Assigned Special Tax
The Assigned Special Tax rates for each Assessor’s Parcel of Developed Property are shown in Table 1.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2026/27
Land Use
Class Description Building Square Feet
Assigned
Special Tax Per
1 Single Family Residential Property >= 3,300 SF $2,572.00 Unit 2 Single Family Residential Property 3,000 - 3,299 SF $2,420.00 Unit 3 Single Family Residential Property 2,700 - 2,999 SF $2,269.00 Unit 4 Single Family Residential Property 2,400 - 2,699 SF $2,117.00 Unit 5 Single Family Residential Property 2,100 - 2,399 SF $1,965.00 Unit 6 Single Family Residential Property 1,800 - 2,099 SF $1,814.00 Unit 7 Single Family Residential Property 1,500 - 1,799 SF $1,662.00 Unit 8 Single Family Residential Property < 1,500 SF $1,510.00 Unit 9 Apartment Property >= 1,000 SF $1,358.00 Unit
10 Apartment Property < 1,000 SF $1,207.00 Unit
11 Accessory Dwelling Unit N/A 0.00 Unit
12 Non-Residential Property N/A 0.60 BSF
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 7 b. Backup Special Tax
The Fiscal Year 2026/27 Backup Special Tax attributable to Developed Property shall be $18,296 per Acre.
c. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2027, the Assigned Special Tax and the Backup Special Tax for Developed Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
d. Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Special Tax levied on an Assessor’s Parcel shall be the sum of the Special Tax for all Land Use Classes located on that Assessor’s Parcel.
2. Final Map Property
The Maximum Special Tax for each Assessor’s Parcel of Final Map Property shall be $18,296 per Acre in Fiscal Year 2026/27.
a. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Special Tax for Final Map Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
3. Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property shall be $18,296 per Acre in Fiscal Year 2026/27.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Special Tax for Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES
Commencing with Fiscal Year 2026/27 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Special Tax Requirement and shall levy the Special Tax until the amount of the Special Tax levied equals the Annual Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property at 100% of the applicable Assigned Special Tax through Fiscal Year 2040/41, after which the Special Tax shall be levied City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 8 Proportionately on each Assessor’s Parcel of Developed Property at a rate up to 100% of the applicable Assigned Special Tax to the extent needed to satisfy the Annual Special Tax Requirement.
Second: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Map Property at a rate up to 100% of the Maximum Special Tax for Final Map Property to the extent needed to satisfy the Annual Special Tax Requirement.
Third: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the second step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property to the extent needed to satisfy the Annual Special Tax Requirement.
Fourth: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first three steps have been completed, then the levy of the Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the applicable Assigned Special Tax up to 100% of the Maximum Special Tax for each such Assessor’s Parcel to satisfy the Annual Special Tax Requirement.
Fifth: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first four steps have been completed, the Special Tax shall be levied on each Assessor’s Parcel of Taxable Property Owner’s Association Property at a rate up to 100% of the Maximum Special Tax for Taxable Property Owner’s Association Property to the extent needed to satisfy the Annual Special Tax Requirement.
Sixth: If additional monies are needed to satisfy the Annual Special Tax Requirement, excluding any amount for Pay-As-You-Go Expenditures, after the first five steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Public Property at a rate up to 100% of the Maximum Special Tax for Taxable Public Property to the extent needed to satisfy the Annual Special Tax Requirement.
E. EXEMPTIONS
1. No Special Tax shall be levied on up to 72.81 Acres of Property Owner’s Association Property and/or Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner’s Association Property, or Public Property. If an Assessor’s Parcel of Taxable Property becomes Property Owner’s Association Property or Public Property after previously being subject to the Special Tax, such property shall be reclassified as either Taxable Property Owner’s Association Property or Taxable Public Property.
2. Property Owner’s Association Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Property Owner’s Association Property. Taxable Property Owner’s Association Property shall be subject to the levy of the Special Tax and shall be taxed City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 9 Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner’s Association Property.
3. Public Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Public Property. Taxable Public Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the sixth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property.
4. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of CFD No. 2025-1 Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct with respect to one or more specific Assessor’s Parcels. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Taxes theretofore levied on the Assessor’s Parcel(s). In addition, during the term of the appeal process, all Special Tax levied must be paid for the subject Assessor’s Parcel(s) prior to delinquency.
The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as once CFD No. 2025-1 Bonds have been issued such correction does not materially adversely affect the levy and collection of Special Taxes on any Assessor’s Parcel needed to repay the CFD No. 2025-1 Bonds.
In addition, the interpretation and application of any section of this document shall be at the CFD Administrator’s discretion.
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 10 H. MANNER OF COLLECTION
The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, that the CFD Administrator may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 2025-1. The City may covenant to foreclose and may actually foreclose or cause an action for foreclosure to be prosecuted in respect of Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
I. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section I:
“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 2025-1.
“Buildout” means the state of maximum development of CFD No. 2025-1, based on plans and anticipated development.
"CFD Public Facilities Cost" means $16,300,000 for CFD No. 2025-1, expressed in 2025 dollars, which shall increase by the annual percentage change in the Construction Inflation Index on July 1, 2026 and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be funded by CFD No. 2025-1 under the authorized bonding program for CFD No. 2025-1, or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D.
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record Building Cost Index for the City of San Francisco, measured as of the calendar year which ends in the previous Fiscal Year, but not less than zero percent. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco. "Future Facilities Costs" means, as of the date of prepayment, the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all Previously Issued CFD No. 2025-1 Bonds, which were, at the time of issuance, available to the City for Authorized Facilities, (b) interest earnings on the Improvement Fund actually earned prior to the date of prepayment, and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expenditures. In no case shall the Future Facilities Costs be less than zero.
"Previously Issued CFD No. 2025-1 Bonds" means all Outstanding CFD No. 2025-1 Bonds that have been issued on behalf of CFD No. 2025-1 prior to the date of prepayment.
1. Prepayment in Full
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Map Property, Undeveloped Property, Taxable Property Owner’s Association Property and Taxable Public Property may be prepaid and permanently satisfied as described herein; provided that there are City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 11 no delinquent installments of the Special Tax with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Outstanding CFD No. 2025-1 Bonds is given, if any.
Proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. If a prepayment is made prior to the issuance of CFD No. 2025-1 Bonds, the Redemption Premium, Interest Amount, Reserve Fund Credit and Capitalized Interest Credit as calculated below, shall be zero. The CFD Administrator may charge the property owner requesting a prepayment calculation a fee for providing this service.
The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
Plus Future Facilities Amount
plus Redemption Premium
plus Interest Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
As of the proposed date of prepayment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:
Step Number:
1. Confirm that no Special Tax delinquency apply to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.
2. For Assessor’s Parcels of Developed Property compute the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Map Property and Undeveloped Property to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the expected development for that Assessor’s Parcel. For Assessor’s Parcels of Taxable Property Owner’s Association Property and Taxable Public Property, calculate the Maximum Facilities Special Tax.
3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for CFD No. 2025-1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of CFD No. 2025-
1. City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 12 b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for CFD No. 2025-1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of CFD No. 2025-
1. c. Determine which quotient computed pursuant to Step 3.a or 3.b is larger (the “Maximum Special Tax Percentage”). For Assessor’s Parcels of Taxable Property Owner’s Association Property and Taxable Public Property, the Maximum Facilities Special Tax Percentage shall be 100%.
4. Multiply the Maximum Special Tax Percentage by the Outstanding CFD No. 2025-1 Bonds to compute the principal amount of Outstanding CFD No. 2025-1 Bonds to be redeemed (the “Bond Redemption Amount”).
5. Compute the Future Facilities Costs.
6. Multiply the Maximum Special Tax Percentage by the total Future Facilities Costs to compute the Future Facilities amount to be prepaid (the “Future Facilities Amount”).
7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding CFD No. 2025-1 Bonds to be redeemed (the "Redemption Premium") determined by reference to the Indenture.
8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding CFD No. 2025-1 Bonds (the “Interest Amount”).
9. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding CFD No. 2025-1 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
10. If reserve funds for the Outstanding CFD No. 2025-1 Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding CFD No. 2025-1 Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date or if the Reserve Fund is satisfied by a credit instrument rather than cash funded.
11. If any capitalized interest for the Outstanding CFD No. 2025-1 Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the Maximum Special Tax Percentage by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit").
12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 8 and 9 less the amount computed pursuant to Steps 10 and 11 (the "Special Tax Prepayment Amount").
City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 13
13. From the Special Tax Prepayment Amount, the amounts computed pursuant to Step 6 shall be used by the City to pay for Future Facilities Costs. The amounts computed pursuant to Steps 4, 6, 7 and 8 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding CFD No. 2025-1 Bonds or make Debt Service payments. The amount computed pursuant to Step 9 shall be retained by the City for the payment of Administrative Fees and Expenses.
The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding CFD No. 2025-1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Outstanding CFD No. 2025-1 Bonds or to make Debt Service payments.
Current year Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor's Parcel that is prepaid, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Special Tax and the obligation of such Assessor's Parcel has been satisfied.
Notwithstanding the foregoing, no prepayment will be allowed unless the Maximum Special Tax that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the maximum annual Debt Service on all Outstanding CFD No. 2025-1 Bonds plus annual Administrative Expenses, as reasonably estimated by the CFD Administrator.
2. Prepayment in Part
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Map Property, Undeveloped Property, Taxable Property Owner’s Association Property and Taxable Public Property may be partially prepaid, provided that a partial prepayment may be made only after all authorized CFD No. 2025-1 Bonds have been issued, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of partial prepayment. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula:
PP = PE x F.
These terms have the following meaning:
PP = the partial prepayment
PE = the Special Tax Prepayment Amount calculated according to Section I.1 F = the percentage of the Special Tax Prepayment Amount calculated according to Section I.1 to be prepaid
The Special Tax partial prepayment amount must be sufficient to redeem at least a $5,000 increment of Bonds.
The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the City of Chowchilla
Community Facilities District No. 2025-1 (Rancho Calera Facilities) Page 14 amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within 45 days of the request and may charge a fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the prepayment funds remitted according to Section I.1, and (ii) indicate in the records of CFD No. 2025-1 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D.
J TERM
The Special Tax shall be levied and collected as needed to fund the Annual Special Tax Requirement for up to 40 years from the initial levy of the Special Tax. In any event no Special Tax shall be levied for CFD. No. 2025-1 after the 2065/66 Fiscal Year.
4924-1133-3135
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA,
CALIFORNIA DETERMINING THE NECESSITY TO INCUR BONDED
INDEBTDEDNESS AND CALLING AN ELECTION FOR THE PURPOSE OF
SUBMITTING THE QUESTIONS OF THE LEVY OF THE SPECIAL TAX, THE
INCURRENCE OF BONDED INDEBTEDNESS, AND THE ESTABLISHMENT OF AN
APPROPRIATIONS LIMIT TO THE QUALIFIED ELECTORS OF CITY OF CHOWCHILLA COMMUNITY FACILITIES DISTRICT NO. 2025-1 (RANCHO
CALERA)
WHEREAS, the City Council, on August 12, 2025, following a duly noticed public hearing, adopted its Resolution # _____ (the “Resolution of Formation”) establishing the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (“CFD No. 2025-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, Part 1, Division 2, Title 5 (commencing with Section 53311) of the California Government Code) (the “Act”) and proposing to levy the special tax described in Exhibit A thereto (the “Special Tax”); and WHEREAS, the City Council has determined at this time to submit to the qualified electors of CFD No. 2025-1, the proposition to approve the Special Tax, the incurrence of bonded indebtedness, and the establishment of an appropriations limit for CFD No. 2025-1; and WHEREAS, the Madera County Registrar of Voters has certified that no persons were registered to vote within the territory of CFD No. 2025-1 as of July 16, 2025, which date is within the 90 day period preceding the close of the public hearing and, accordingly, pursuant to Government Code section 53326, subdivision (b), the qualified electors of CFD No. 2025-1 for the election called hereby shall be the owners of land within CFD No. 2025-1; and WHEREAS, the City Council has received a written instrument from each landowner in CFD No. 2025-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chowchilla that:
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Necessity of Bonded Indebtedness. The City Council deems it necessary for CFD No. 2025-1 to incur the bonded indebtedness.
Section 3. Purpose of Debt. The indebtedness will be incurred for the purpose of financing the construction or acquisition of the facilities described in Exhibit B to the Resolution of Formation (the “Facilities”).
Section 4. Territory to be Taxed. The whole of CFD No. 2025-1 shall pay for the bonded indebtedness.
4924-1133-3135
Section 5. Amount of Debt. The maximum amount of bonded indebtedness to be incurred is $30,000,000.00.
Section 6. Maximum Term of the Debt. The maximum term of the bonds of any series shall not exceed forty years from their date of issuance.
Section 7. Maximum Interest Rate on the Bonds. The bonds shall bear interest at rate or rates not to exceed the maximum rate permitted by law at the time the bonds are issued, payable annually or semiannually or in such other manner as the City Council shall determine, the actual rate or rates and times of payment of such interest to be determined by the City Council at the time or times the bonds are issued.
Section 8. Appropriations Limit. The City Council proposes that the appropriations limit, as defined by Subdivision (h) of Section 8 of Article XIII B of the California Constitution, for CFD No. 2025-1 be established in the amount of special taxes collected.
Section 9. Accountability Measures. Pursuant to Government Code Sections 50075.1, 53410, and 53411, the City shall create separate accounts into which tax and bond proceeds will be deposited; and the City Administrator or City Finance Director shall file a report annually with the City Council stating (a) the amount of funds collected and expended and (b) the status of the Facilities financed in CFD No. 2025-1.
Section 10. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax, incurring the bonded indebtedness, and establishing the annual appropriations limit for CFD No. 2025-1 to the qualified electors of CFD No. 2025-1, in accordance with and subject to the Act. The special election shall be held on Tuesday, August 12, 2025, and shall be conducted as follows:
a. Qualified Electors. The City Council hereby determines that the Facilities are necessary to meet increased demands placed upon the City and other local agencies as a result of development occurring within the boundaries of CFD No. 2025-1. Because no registered voters resided within CFD No. 2025-1, the qualified electors shall be the landowners within CFD No. 2025-1, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within CFD No. 2025-1.
b. Consolidation of Elections; Combination of Propositions on Ballot. As authorized by Government Code sections 53351(h) and 53353.5, the questions of levying the special tax, establishing an appropriations limit, and incurring bonded indebtedness for CFD No. 2025-1, shall be consolidated and combined into a single ballot proposition for submission to the qualified electors of CFD No. 2025-1 at a single election. The combined ballot proposition shall read as shown in the form of the ballot attached hereto as Exhibit A. c. Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted by mailed ballot. The City Council hereby directs the City Clerk to mail to each landowner in the District a ballot in the form set forth in Exhibit A with return postage prepaid or by personal service to each such landowner, all as provided in Section Government Code section 53326.
4924-1133-3135
d. Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 4:00 p.m. on the day of the election, whether the ballots be personally delivered or received by mail. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by qualified electors. Once all qualified electors have voted, the City Clerk may close the election.
e. Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed. At the conclusion of the canvass, the City Clerk shall report the results of the election to the City Council. f. Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.
Section 11. Filing of Resolution with City Clerk. The City Council hereby directs the City Clerk to file a copy of this Resolution in her office.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of August, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
4924-1133-3135
EXHIBIT A
SPECIAL TAX AND BOND ELECTION
CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(RANCHO CALERA)
OFFICIAL BALLOT for Election Date: August 12, 2025
Number of votes entitled to cast: 138
INSTRUCTIONS TO VOTERS: To vote on the measure, mark an (X) or a check mark in the voting square after the word “YES” or after the word “NO.” All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the City Clerk, City Hall, 130 S. 2nd Street, Chowchilla, California 93610, to obtain another.
MEASURE SUBMITTED TO VOTE OF LANDOWNERS
Ballot Measure:
“Shall the special tax be levied within the territory of the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (“CFD No. 2025-1”) for the purpose of financing the acquisition or construction costs of certain public capital facilities, at the rates and apportioned all as further described in the Resolution Establishing CFD No. 2025-1 (“Resolution of Formation”) adopted by the City Council of the City of Chowchilla on August 12, 2025, which resolution is incorporated herein by reference, within the territory identified on the boundary map for CFD No. 2025-1 which map is on file with the City Clerk, shall CFD No. 2025-1 be authorized to incur bonded indebtedness in an aggregate principal amount not exceeding $30,000,000, and shall an appropriations limit be established in the amount of special taxes collected, all as set forth in the Resolution of Formation?”
YES:
NO:
NOTE: This ballot is for a special landowner election. We request that you return this ballot to the City Clerk, City of Chowchilla, to her office at City Hall, 130 S. 2nd Street, Chowchilla, California 93610, by 12:00 p.m. on Tuesday, August 12, 2025 and no later than five minutes following the City Council's adoption of the Resolution Calling the Election on August 12, 2025.
4937-3758-5167
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA,
CALIFORNIA DECLARING THE RESULTS OF THE SPECIAL ELECTION HELD ON AUGUST 12, 2025, IN THE CITY OF CHOWCHILLA COMMUNITY FACILITIES DISTRICT NO. 2025-1 (RANCHO CALERA)
WHEREAS, the City Council (the “City Council”) of the City of Chowchilla (the “City”) on August 12, 2025, duly adopted its Resolution # ______ (the “Resolution Calling Election”), which ordered a special landowner election in the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (“CFD No. 2025-1”) on the levy of the special tax within CFD No. 2025-1, the establishment of an appropriations limit for CFD No. 2025-1, and the necessity to incur a bonded indebtedness; and
WHEREAS, pursuant to the terms of the Resolution Calling Election, the special election was held on Tuesday, August 12, 2025, and the City Clerk has duly canvassed the returns of the election and has filed with the City Council a statement of all votes cast at the election showing the whole number of votes cast in CFD No. 2025-1 and the whole number of votes cast for and against the measure (the “Statement of Election Results”), which is attached hereto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chowchilla that:
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Measure. At the election, the measure described in the Resolution Calling Election was submitted to the qualified electors of CFD No. 2025-1, which qualified electors were the owners of land within CFD No. 2025-1. Such qualified electors had one vote for each acre or portion of an acre of land that he or she owns within CFD No. 2025-1 not exempt from the special tax.
Section 3. Canvass. The canvass by the City Clerk as shown by the Statement of Election Results is hereby ratified, confirmed, approved, and entered upon the minutes of this meeting.
Section 4. Votes Cast; Election Results. The total number of votes cast in the District at the election was 138. The number of votes cast for the measure was 138 and the number of votes cast against the measure was zero. More than two-thirds of all the votes cast at the election on the measure were in favor of the measure and the measure passed.
Section 5. Notice of Special Tax Lien. The City Clerk is hereby directed to record a Notice of Special Tax Lien with the County Recorder of Madera County, in accordance with the provisions of Section 3114.5 of the California Streets and Highways Code within fifteen (15) days of the adoption of this Resolution.
4937-3758-5167
PASSED AND ADOPTED this 12th day of August, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
Attachment: Exhibit A: Statement of Election Results
4937-3758-5167 A-1
EXHIBIT A
STATEMENT OF ELECTION RESULTS
I, Joann McClendon, City Clerk of the City of Chowchilla (the “City”), hereby certify that:
1. On August 12, 2025, at City Hall, 130 S. 2nd Street, Chowchilla, California, I canvassed the returns of the election called for August 12, 2025, in the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) on the following measure:
Ballot Measure: “Shall the special tax be levied within the territory of the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (“CFD No. 2025-1”) for the purpose of financing the acquisition or construction costs of certain public capital facilities, at the rates and apportioned all as further described in the Resolution Establishing CFD No. 2025-1 (“Resolution of Formation”) adopted by the City Council of the City of Chowchilla on August 12, 2025, which resolution is incorporated herein by reference, within the territory identified on the boundary map for CFD No. 2025-1 which map is on file with the City Clerk, shall CFD No. 2025-1 be authorized to incur bonded indebtedness in an aggregate principal amount not exceeding $30,000,000, and shall an appropriations limit be established in the amount of special taxes collected, all as set forth in the Resolution of Formation?”
2. The total number of qualified landowner votes eligible to be cast, the total number of votes actually cast at the election, and the total number of votes cast for and against the measure are set forth below. The totals as shown for and against the measure are full, true, and correct. More than two-thirds of all the votes cast at the election on the measure were in favor of the measure and the measure passed.
Qualified
Landowner
Votes
Votes Cast YES NO
138 138 138 0
Dated: August 12, 2025
Joann McClendon, City Clerk
CITY COUNCIL ORDINANCE # XXX-25
AN ORDINANCE OF THE CITY OF CHOWCHILLA, CALIFORNIA, LEVYING AND
APPORTIONING SPECIAL TAXES WITHIN CITY OF CHOWCHILLA COMMUNITY FACILITIES DISTRICT NO. 2025-1 (RANCHO CALERA)
WHEREAS, on June 24, 2025, this City Council of the City of Chowchilla (the “City”) adopted Resolution # 46-25 (the “Resolution of Intention”), stating its intention to establish the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (“CFD No. 2025- 1”) pursuant to the Mello-Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code (the “Act”), to finance the costs of acquisition and construction of certain public facilities (the “Facilities”); and
WHEREAS, pursuant to the Resolution of Intention a public hearing was called, and notice thereof was published pursuant to the Act, on the matters set forth in the Resolution of Intention; and
WHEREAS, on August 12, 2025, this City Council conducted the public hearing relative to such matters; and
WHEREAS, at the public hearing all persons desiring to be heard on all such matters were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; and
WHEREAS, subsequent to said hearing, this City Council adopted Resolution No. #____ (the “Resolution of Formation”) establishing CFD No. 2025-1, and Resolution #___ calling an election within CFD No. 2025-1 on the propositions of incurring bonded indebtedness, levying the special taxes within CFD No. 2025-1 (the “Special Taxes”), and establishing an appropriations limit for CFD No. 2025-1; and
WHEREAS, on August 12, 2025, a special election was held within CFD No. 2025-1 in which over two-thirds of the qualified electors voting on the matter approved said propositions.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla does hereby ordain as follows:
Section 1. Levy of Special Tax. By the passage of this Ordinance this City Council hereby authorizes and levies Special Taxes within CFD No. 2025-1 pursuant to the Act, at the maximum rates and apportioned all in accordance with the rate and method of apportionment of special taxes for CFD No. 2025-1 approved by, and attached as Exhibit A to, the Resolution of Formation (the “Rate and Method”) which Resolution is by this reference incorporated herein.
The Special Taxes are hereby levied commencing in Fiscal Year 2026-27 as set forth in the Resolution of Formation.
Section 2. Annual Apportionment and Rate Setting. The City Council shall in each fiscal year determine the specific Special Tax rate and amount to be levied for each parcel 4932-5793-1860 -2-
of real property within CFD No. 2025-1, in the manner and as provided in the Rate and Method.
In no event shall the Special Taxes be levied on any parcel within the CFD No. 2025-1 in excess of the maximum tax specified in the Rate and Method.
Section 3. Collection of Special Tax. Pursuant to Section 53340 of the Government Code, Special Taxes shall be collected on the secured real property tax roll in the same manner as ordinary ad valorem taxes are collected. The Special Taxes shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes. In addition, the provisions of Section 53356.1 of the Government Code shall apply to delinquent Special Tax payments. The Finance Director is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Madera and to otherwise take all actions necessary in order to effect proper billing and collection of the Special Taxes, so that the Special Taxes shall be levied and collected in sufficient amounts and at the times necessary to satisfy the financial obligations of CFD No. 2025-1 in each fiscal year.
Notwithstanding the foregoing, the City may collect one or more installments of the Special Taxes on any one or more parcels in CFD No. 2025-1 by means of direct billing by the City of the property owners within CFD No. 2025-1, and may collect Special Taxes at a different time or in a different manner, if, in the judgment of the City, such means of collection will reduce the administrative burden on the City in administering CFD No. 2025-1, to meet the financial obligations of CFD No. 2025-1, or is otherwise appropriate in the circumstances. In such event, the Special Taxes shall become delinquent if not paid when due as set forth in any such respective billing to the applicable property owners.
Section 4. Claims for Refund. Claims for refund of the tax shall comply with the following and any additional procedures as established by the City Council:
a. All claims shall be filed, in writing, with the City Clerk no later than one year after the date the tax became payable. The claimant shall file the claim within this time period and the claim shall be finally acted upon by the City Council as a prerequisite to bringing suit thereon.
b. Pursuant to Government Code section 935(b), the claim shall be subject to the provisions of Government Code sections 945.6 and 946.
c. The City Council shall act on a timely claim within the time period required by Government Code section 912.4.
d. The procedure described in this Ordinance, and any additional procedures established by the City Council, shall be the exclusive claims procedure for claimants seeking a refund of the tax. The decision of the City Council shall be final.
Section 5. Severability. If for any reason any portion of this Ordinance is found to be invalid, or if the Special Taxes are found inapplicable to any particular parcel within CFD No. 2025-1, by a court of competent jurisdiction, the balance of this Ordinance, and the application of the Special Taxes to the remaining parcels within CFD No. 2025-1 shall not be affected. 4932-5793-1860 -3-
Section 6. Effective date. This Ordinance shall take effect and be in force thirty (30) days from and after its final passage.
Section 7. Publication. With fifteen (15) days after passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation.
INTRODUCED at a regular City Council meeting on the August 12, 2025.
PASSED AND ADOPTED, by the City Council of the City of Chowchilla at a regular meeting held this 26th day of August, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Kelly Smith, Mayor
ATTEST:
Joann McClendon, CMC
City Clerk
REPORT TO THE CITY COUNCIL
Item 6.1
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: August 12, 2025
AGENDA SECTION: New Business
SUBJECT: Resolution Approving Entering into a Cover Agreement with The California Department of Transportation
APPROVED BY: Jason Rogers, Director of Public Works
ATTACHMENTS: Resolution, Caltrans Cover Agreement
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
City Council adopt a resolution to approve and enter into a cover agreement with the California Department of Transportation (Caltrans) to assist in the adjustment of utility covers within their Right-of-Way (RoW).
BACKGROUND:
The California Department of Transportation (Caltrans) is proposing to resurface the existing pavement to extend the pavement service life in Chowchilla on SR 233 (Robertson Blvd), from Avenue 24 ½ to State Route North 99 and 233 Connector Bridge.
REASON FOR RECOMMENDATION:
Caltrans would like to enter into a cover agreement with the City of Chowchilla to assist in the adjustment of utility covers along the project route on project 06-0W860 CAPM project that fall within Caltrans’ RoW.
This agreement will allow the State to make any necessary adjustments to utility covers within the RoW and assume the cost and the work of those adjustments for the City according to the City’s specifications.
Although the agreement is ongoing for this and future projects, the City will have the ability to choose to do the work for these adjustments for every project.
FISCAL IMPACT:
If the City approves the agreement, there is no fiscal cost to the City. All costs related to utility cover adjustments related to the project will be borne by Caltrans. Costs for utility adjustments can vary from $1,000 to $3,000 per location depending on various factors. The City will receive a payment of $1,500.00 from Caltrans for a Temporary Construction easements.
ALTERNATIVES:
Not to enter into the agreement with Caltrans, at which point, the City will be responsible for adjustments to any utility covers within the project.
ACTIONS FOLLOWING APPROVAL:
1. The City Administrator will sign and execute the required documents.
2. The documents will be submitted to Caltrans.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
APPROVING ENTERING INTO A COVER AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF
TRANSPORTATION
WHEREAS, The California Department of Transportation (Caltrans) is proposing to resurface the existing pavement to extend the pavement service life in Madera County on SR 233 (Robertson Blvd), from Avenue 24 ½ to State Route North 99 and 233 Connector Bridge; and WHEREAS, The project consists of the adjustment of utility covers along the project route; and WHEREAS, The cover agreement will allow Caltrans to make any necessary adjustments to utility covers within the Right-of-Way along the project route; and WHEREAS, Caltrans will assume the cost and the work of those adjustments for the City according to the City’s specifications; and
WHEREAS, the City will have the ability to choose to do the work for these adjustments for every project; and
WHEREAS, the City Administrator, or his designee, is authorized to execute all documents necessary for the cover agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
1. The above recitals are true and correct.
2. The City Council hereby approves the cover agreement by and between the City of Chowchilla and the State of California, Department of Transportation, for the adjustment of utility covers within their Right-of-Way.
3. The City Administrator, or designee, is authorized to sign all documents related to effectuate the agreement.
4. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of August, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION EXHIBIT COVER AGREEMENT 13-EX-04 (NEW 05/2022)
Date: ______________________________
PARTIES:
1. State of California, acting by and through the Department of Transportation (“Department”). “Department” includes the Department, its officers, agents, employees and contractors.
2. ________________________________________________________________ (“Owner”). “Owner” includes the Owner, its officers, agents, employees and contractors.
RECITALS:
A. Owner owns, operates or maintains underground utility facilities in the State of California.
B. In order to facilitate the planning, design and construction of Department’s projects, to ensure the safety of the traveling public, and to ensure the continuity of the roadway/highway, manhole and valve cover adjustments need to be made on a routine basis. Utility owners may or may not be responsible for the cost of performing such adjustments, depending upon the liability determination made by the Department, with the cost of such activities allocated as provided by California law, contracts and the Department’s policies.
C. The Department frequently needs to adjust said manhole and valve covers more expeditiously than Owner can readily or economically accomplish.
D. Department is willing to assume control of the operation and cost of such adjustments to certain manhole and valve covers in order to facilitate the Department’s project needs from time to time as provided herein.
THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. This Agreement for the Adjustment of Manhole and Valve Covers (“Agreement”) is made and executed by the parties hereto in connection with the provisions of Sections 680.5 and 707.5 of the California Streets and Highways Code. This Agreement shall exclusively govern the determination of the obligations and costs to be borne by each party hereto in regard to work described herein in lieu of determination in connection with and under the provisions of Sections 673, 680 and 700 to 707, inclusive, of said Streets and Highways Code, as now or hereafter existing, or under any other laws applicable to said subject matter.
City of Chowchilla
EXHIBIT
COVER AGREEMENT (Cont.) 13-EX-04 (NEW 05/2022)
2. This Agreement shall apply throughout the State of California to all of the Department’s projects and related activities and to all of the Owner’s manhole and valve covers. With regard to any other agreements or parties, this Agreement is not intended to, and shall not, establish any precedent, principle, rule or guide to interpretation.
3. For purposes of this Agreement, manhole and valve cover adjustment is limited to the following: adjusting manhole frames and covers, replacing existing manhole frames, and adjusting manhole rings, valve covers and meter boxes.
This Agreement does NOT include the adjustment to grade of gas, electric or telephone vaults, or any other utility facility not mentioned in this agreement.
4. In the event that the Department initiates a project and the Department determines that some of the Owner’s manhole and valve covers are in physical conflict with Department’s highway project, the Department shall issue a conflict letter (“Conflict Letter”) to the Owner that (a) identifies the manhole and valve covers that are in physical conflict with Department’s highway project and (b) includes a document (the “Reply”) in which the Owner will designate the manhole and valve covers that the Owner agrees to be responsible to adjust. The Owner shall adjust the manhole and valve covers for which it agreed to be responsible within the Department’s project scheduling and other requirements. Owner shall return the Reply to the Department within 30 days of receipt of the Conflict Letter. The Department is authorized to adjust only the manhole and valve covers that are not designated by Owner as those for which the Owner is responsible. The work to be performed under this Agreement is expressly limited to the work required to adjust the manhole and valve covers that are listed in the Conflict Letter, and the Reply shall not and cannot expand the list of manhole and valve covers.
5. Notwithstanding the other terms of this Agreement, the Department may, at its sole option, elect to NOT adjust-to-grade manhole and valve covers that do not satisfy Caltrans standard specifications, as amended from time to time (including without limitation manhole and valve covers that do not use standard rings or covers).
6. This Agreement does not apply to the relocation, rearrangement, removal or protection of utility facilities.
EXHIBIT
COVER AGREEMENT (Cont.) 13-EX-04 (NEW 05/2022)