AGENDA
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, September 23, 2025
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:
OPEN SESSION – 4:00 PM
PLEDGE OF ALLEGIANCE
INVOCATION:
PRESENTATIONS/WORKSHOP - Section 1
1.1 Proclamation – Fire Prevention Week
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.
City Council Meeting AGENDA September 23, 2025
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 September 9, 2025 Regular City Council Meeting Minutes (McClendon)
3.2 Approval of the September 9, 2025 Special City Council Meeting Minutes (McClendon)
3.3 Consideration and Acceptance of the August 2025 Financial Report (Williams) PUBLIC HEARINGS – Section 4
4.1 Consideration and Adoption of a City Council Resolution Approving the Close Out of 2021 Community Development Block Grant Program 21-CDBG-10010 (Pruett) DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6
6.1 Consideration and Adoption of a City Council Resolution Declaring its Intention to Establish Community Facilities District No. 2025-2 (Replacement of CFD 2006-1), to Authorize the Levy of Special Taxes Therein, and to Incur Bonded Indebtedness (Pruett)
6.2 Consideration and Adoption of a City Council Resolution Awarding the Contract for the Avenue 24 ½ Reconstruction Project to Terra West Construction, Inc. and Authorizing the City Administrator or Designee to Execute Related Documents (Rogers)
6.3 Consideration and Adoption of a City Council Resolution Amending the Athletic Field Use Policy and Establishing an Effective Date (Wisener)
6.4 Request for Council Direction Regarding Beautification of Vacant Land Donated to the City at 319 Robertson Boulevard (Rogers)
6.5 Discussion and Direction Regarding Entering Into a Joint Powers Authority (JPA) with Pioneer Community Energy (Pioneer) Regarding Providing Electric Utility Services in the City of Chowchilla (Pruett)
City Council Meeting AGENDA September 23, 2025
ANNOUNCEMENTS – Section 7
OCT 14 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
OCT 15 PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5PM
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 18th day of September, 2025 at or before 5:00 pm.
Joann McClendon, CMC, City Clerk
September 23, 2025 City Council Meeting | 4pm Open Session
ZOOM LOGIN INSTRUCTIONS
Use the following URL to start Zoom:
https://us06web.zoom.us/j/86325637108?pwd=ejSGraBWl6G51BxFRNzZQjCY3uDInK. 1 Passcode: 556 068
To participate by phone:
Dial 1-669-444-9171
Webinar ID: 863 2563 7108
Passcode: 556 068
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, September 9, 2025
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 (absent), John Chavez City staff and contract employees present:
City Administrator Rod Pruett, City Attorney Mary Lerner, Police Chief Jeff Palmer, Fire Chief Fred Gaumnitz, Public Works Director Jason Rogers, Director of Recreation & Community Engagement Stacy Wisener, IT System Administrator Carlos Berrocal, City Clerk Joann McClendon, Deputy City Clerk Vanessa Galvez-Escobar
CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions:
It was the Consensus of the City Council to remove Item 6.2 from the agenda.
OPEN SESSION – 4:14 PM
PLEDGE OF ALLEGIANCE
INVOCATION: Pastor Pruitt
PRESENTATIONS/WORKSHOP - Section 1
1.1 Proclamation – 175th Anniversary of Statehood
PUBLIC ADDRESS
None.
COUNCIL AND STAFF VERBAL REPORTS – Section 2
2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
Council Member Ahmed reported that he attended the Economic Development Commission (EDC) meeting. The Economic Development Commission currently has a couple of programs underway, including an I-9 verification training offered in partnership with the local Chamber of Commerce. This is a e-virtual program available to employers to help them stay compliant with new employment laws. He also shared information on the California Competes Tax Credit Program, in which the Economic Development Commission is working with the State of California and the Central Valley Business Development Specialist. This program can assist businesses seeking to locate in the area with access to resources, including financing opportunities that may cover up to 80% of a loan. Councilmember Ahmed encouraged that these programs be marketed to ensure businesses are aware of the resources available.
City Council Meeting MINUTES September 9, 2025
Mayor Smith reported attending the Madera County Republican Dinner where Rob Schneider was the guest speaker. He noted it was an enlightening event and an opportunity to meet many community members. He also attended the second anniversary of the Eco Lube Car Show.
Mayor Smith congratulated the organizers on their successful second year and expressed appreciation for seeing local businesses grow and succeed.
2.2 STAFF VERBAL REPORTS
Police Chief Palmer, since last meeting, the Chowchilla PD has responded to 1,134 calls for service. Conducted 427 proactive stops, resulting in; 36 misdemeanor arrests,10 felony arrests,19 citations issued. Code Enforcement and Animal Control have both stayed busy responding to calls for service and conducting enforcement in those areas.
Fire Chief Gaumnitz, reported 89 calls for service in August, with volunteers providing 379 total responses. On September 1, significant lightning activity occurred throughout the Valley, with over 4,000 strikes recorded. One strike ignited a palm tree at the golf course; however, due to the absence of ground fuel, it did not present a fire hazard. Later that day, a lightning strike near Easton Lake started a fire that grew to 4,800 acres. The City deployed two firefighters and a water tender for 18 hours of mutual aid response. Chief Gaumnitz expressed appreciation for the volunteers’ dedication during this extended operation. He also noted two additional large regional fires: one near Coalinga (approximately 5,000 acres) and another from Kings River to Dinky Creek (approximately 55,000 acres), as well as the devastation at Chinese Camp, where over 300 residents lost their homes.
Public Works Director Rogers, reported meeting with Caltrans and Madera County Transport Commission (MCTC) to review cost reduction strategies related to the Roundabouts Project.
Caltrans presented a couple of options that could potentially save millions on the project. City Administrator Rod Pruett and Rogers are currently evaluating with Madera County Transport Commission before brining recommendations back to council. Employment offers have been extended for a Parks Worker and Wastewater System Supervisor, with anticipated start dates in October pending completion of background, physical, and drug testing. They are expected to start in October pending background, physical, and drug testing. Additionally, bids closed last week for the Avenue 24 ½ Road Reconstruction Project. Fourteen bids were received, all under the engineer’s estimate. Staff is reviewing the bids for completeness and responsiveness and anticipates bringing a recommendation to Council at the next meeting.
Community Engagement Wisener, reported that staff has been preparing for upcoming fall events, including the Halloween Tree Trail. Vendor and community organization applications are currently open. She noted that the Farmers Market did not move forward this year due to a lack of available farmers despite outreach efforts; however, staff will continue to pursue opportunities with local growers. On the project side, rehabilitation of the Edward Ray Park concession stand is in its final phases, with equipment and furnishings being secured. A ribbon-cutting ceremony will be scheduled upon completion. In recreation programming, Little League and Adult Recreation are currently running fall seasons, and Youth Soccer is also underway. Staff continues to coordinate with community leagues to manage high field demand this season.
City Clerk McClendon, reported that interviews were conducted for the Finance Director position. The Caltrans Drug and Alcohol Technical Assistance and Compliance Review for the Transit Program was completed last week, and the City will receive a report back on the findings. It was also noted that the City’s table for the State County event on October 16 is full.
City Administrator Pruett, reported regarding staffing, interviews were conducted for the Finance Director position with three candidates considered. The interview panel agreed on a finalist, and an offer has been extended. It is anticipated that the position will be filled within the next three weeks. Additionally, an offer was made and accepted for the Community Development Director position, with the new director scheduled to begin next Monday. At the most recent department head meeting, staff met with Townsend Public Affairs, the City’s contracted grant writing firm.
City Council Meeting MINUTES September 9, 2025
The firm will be developing a strategic plan to better align grant opportunities with the City’s capital improvement priorities and ongoing projects, while still remaining flexible to pursue other emerging opportunities. Optimism was expressed that grant funding could be secured for some projects within the coming months. Meetings were also held with representatives from AutoZone regarding ongoing discussions, and work continues on a potential agreement with the County concerning the 2008 fire station resolution. Emphasis was placed on finalizing progress with Fire Chief Jay before his upcoming retirement.
CONSENT CALENDAR – Section 3
3.1 Approval of the August 26, 2025 Regular City Council Meeting Minutes (McClendon)
3.2 Consideration and Acceptance of the August 2025 Check Register (Williams)
3.3 Rejection of Claim Submitted by the Law Office of Kevin G. Little on Behalf of Malorie Owens (McClendon)
Motion by Council Member Chavez, Seconded by Mayor Pro Tem Troost to Approve the Consent Calendar as Presented. Motion passed by roll call vote with Council Member Barragan absent.
PUBLIC HEARINGS – Section 4
DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6
6.1 Consideration and Adoption of a City Council Resolution (70-25) Declaring its Intention to Establish Community Facilities District No. 2025-2 (Replacement of CFD 2006-1), to Authorize the Levy of Special Taxes Therein, and to Incur Bonded Indebtedness (Pruett)
Motion by Mayor Pro Tem Troost, Seconded by Council Member Chavez, to adopt Resolution #70-25 Declaring its Intention to Establish Community Facilities District No. 2025-2 (Replacement of CFD 2006-1), to Authorize the Levy of Special Taxes Therein, and to Incur Bonded Indebtedness. Motion passed by roll call vote with Council Member Barragan absent.
6.2 Consideration and Adoption of a City Council Resolution Declaring its Intent ion to Annex Territory into a Community Facilities District and to Authorize the Levy of Special Taxes (Pruett)
6.3 Consideration and Adoption of a City Council Resolution (71-25) Awarding the Contract for Rehabilitation of Runway 12-30 and Airfield Lighting System to Yarbs Grading and Paving, and Authorizing the City Administrator or Designee to Execute Related Documents (Rogers)
Motion by Council Member Ahmed, Seconded by Council Member Chavez, to adopt Resolution #71-25 Awarding the Contract for Rehabilitation of Runway 12-30 and Airfield Lighting System to Yarbs Grading and Paving, and Authorizing the City Administrator or Designee to Execute Related Documents. Motion passed by roll call vote with Council Member Barragan absent.
6.4 Consideration and Adoption of a City Council Resolution (72-25) Awarding Contract for the Waterline Replacement Project to MidCal Pipeline & Utilities, Inc. and City Council Meeting MINUTES September 9, 2025
Authorizing the City Administrator or Designee to Execute Related Documents (Rogers)
Motion by Mayor Pro Tem Troost, Seconded by Council Member Ahmed, to Adopt Resolution #72-25 Awarding Contract for the Waterline Replacement Project to MidCal Pipeline & Utilities, Inc. and Authorizing the City Administrator or Designee to Execute Related Documents. Motion passed by roll call vote with Council Member Barragan absent.
6.5 Consideration of Measure N Public Safety Transactions and Use Tax Citizen’s Oversight Committee and Airport Advisory Committee Appointments (McClendon) Motion by Council Member Ahmed, Seconded by Council Member Chavez, to Approve the Appointments to the Measure N Oversight Committee and the Airport Advisory Committee as Recommended. Motion passed by roll call vote with Council Member Barragan absent.
ANNOUNCEMENTS – Section 7
SEP 17 PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5PM SEP 23 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
ADJOURNMENT
Mayor Smith Adjourned the September 9 Regular City Council Meeting in Memory of Patty Mandrell at 4:52 p.m.
ATTEST: APPROVED:
Joann McClendon, CMC, City Clerk Mayor Kelly Smith
Item 3.2
CLICK HERE
TO RETURN TO
THE AGENDA
MINUTES
Special City Council Meeting Council Chamber, Chowchilla City Hall 130 S. Second Street, Chowchilla, CA 93610
Tuesday, September 9, 2025
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 (absent), John Chavez City staff and contract employees present: City Administrator Rod Pruett, City Attorney Mary Lerner, Police Chief Jeff Palmer, Fire Chief Fred Gaumnitz, Public Works Director Jason Rogers, Director Wisener, IT System Administrator Carlos Berrocal, Deputy City Clerk Vanessa GalvezEscobar, City Clerk Joann McClendon
PLEDGE OF ALLEGIANCE
INVOCATION: Mayor Smith announced that the invocation would be moved to the regular City Council meeting. No invocation was given at this session.
OPEN SESSION – 4:00 PM
SECTION 1 - PRESENTATIONS
1.1 Donation Request from Chowchilla Rotary for Their Downtown Beautification Program
Diana Palmer, representing Chowchilla Rotary, requested $10,000.00 to assist with their “Beautify Chowchilla” project to modernize downtown business fronts.
Motion by Mayor Pro Tem Troost, Seconded by Council Member Ahmed, to Approve the Donation Request from the Chowchilla Rotary for their Downtown Beatification Program. Motion passed by roll call vote with Council Member Barragan absent.
ADJOURNMENT
Mayor Smith adjourned the September 9, 2025 Special City Council meeting at 4:12 p.m.
ATTEST: APPROVED:
Joann McClendon, City Clerk Mayor Kelly Smith
Item 3.3
CLICK HERE
TO RETURN TO
THE AGENDA
REPORT TO THE CITY COUNCIL
Meeting of: September 23, 2025
AGENDA SECTION: Consent
SUBJECT: Consideration of Monthly Financial Statements
PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: August 2025 Budget vs Actual and Balance Sheet
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☐ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Approve the August 2025 Financial Statements shown in the attachment BACKGROUND:
Staff provides Council with monthly financial information as an ongoing financial status update REASON FOR RECOMMENDATION:
The monthly financial statements consist of a Budget vs Actual and a Balance Sheet for the General Fund. The Budget vs Actual shows the current Month (Period Activity) and current Year (Fiscal Activity) Revenues and Expenses by Department in summary form compared to the current year Original and Current budgets. The Balance Sheet shows the Assets, Liabilities and Fund Balance at the time the report is generated. This provides an overview of cash, amounts owed to the City, amounts the City owes and the fund balance at a specific point in time.
The financial statements are being presented as an overview of the City’s finances and are not meant to be a comprehensive in-depth review. As a reference to compare to the percent remaining column in the report, the percentage of the year remaining 83.33%.
If the percent remaining column for Revenues is higher than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant. If the percent remaining column for Expenses is lower than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant.
If there are questions regarding the actual amounts or budget vs actual variances, please forward your questions to me in enough time before the meeting for staff to research them FISCAL IMPACT:
Revenues
General Administration- Property tax and VLF, which are 2 of our biggest revenues, are only received 2 times a year in February and May, we have yet to receive a distribution. We are teetered which means we do not have to worry about delinquencies, because the County pays us and goes after the delinquencies themselves. Sales tax payments run a couple months behind and we have yet to receive July’s payment.
Sales tax is our 2nd largest revenue.
Police Department- Budgeted revenue is from school reimbursements for SRO service, which we have received. Also, it has $700k Transfer-in from Measure N for the RIMS Software, recruitment and retention of employees, communications upgrade, evidence storage and fleet/upfitting costs.
Fire Department- This revenue is for fines/penalties and fire inspection fees which is completed throughout the year
Community & Economic Development- This will fluctuate as building permits are pulled. We budgeted for the following projects like Rancho Calera, Solar Permits and various other projects within the City. We still have other miscellaneous permits for other items that are happening as well.
Parks and Facilities- The revenues are for overhead allocations from the LLMD that happen at the end of the year.
Community Relations- Revenues are from sports program reimbursements, park pavilion rentals and donations.
Expenses
General Services- Budgeted Expenses are more than usual as of right now due to the POB Transfer out.
Police Department- Budgeted Expenses are more than usual as of right now due to the POB Transfer out.
Fire Department- Budgeted Expenses are more than usual as of right now due to the payment to the volunteer firefighters.
Community Relations- Budgeted Expenses are more than usual as of right now due to the purchase of Archive Social Subscription and Enclosed Trailer.
ALTERNATIVES:
Pull the item for further discussion
ACTIONS FOLLOWING APPROVAL:
None
9/9/2025 8:50:10 AM Page 1 of 3
Budget Report
Chowchilla, CA Group Summary
For Fiscal: 2025-2026 Period Ending: 08/31/2025
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 1600 - General Administration
Revenue 10,697,699.00 10,697,699.00 29,159.19 125,200.69 -10,572,498.31 98.83% Expense 427,896.00 427,896.00 1,173.39 1,554.77 426,341.23 99.64% Dept: 1600 - General Administration Surplus (Deficit): 10,269,803.00 10,269,803.00 27,985.80 123,645.92 -10,146,157.08 98.80% Dept: 1605 - City Council
Revenue 3,500.00 3,500.00 568.80 711.00 -2,789.00 79.69% Expense 121,911.00 121,911.00 6,053.60 7,421.67 114,489.33 93.91% Dept: 1605 - City Council Surplus (Deficit): -118,411.00 -118,411.00 -5,484.80 -6,710.67 111,700.33 94.33% Dept: 1610 - City Clerk
Expense 291,900.00 291,900.00 28,626.32 85,448.66 206,451.34 70.73% Dept: 1610 - City Clerk Total: 291,900.00 291,900.00 28,626.32 85,448.66 206,451.34 70.73% Dept: 1615 - City Attorney
Expense 275,000.00 275,000.00 6,753.63 6,753.63 268,246.37 97.54% Dept: 1615 - City Attorney Total: 275,000.00 275,000.00 6,753.63 6,753.63 268,246.37 97.54% Dept: 1705 - General Services
Expense 2,247,814.00 2,247,814.00 74,229.88 661,002.92 1,586,811.08 70.59% Dept: 1705 - General Services Total: 2,247,814.00 2,247,814.00 74,229.88 661,002.92 1,586,811.08 70.59% Dept: 1710 - City Administration
Expense 456,703.00 456,703.00 38,042.93 68,705.73 387,997.27 84.96% Dept: 1710 - City Administration Total: 456,703.00 456,703.00 38,042.93 68,705.73 387,997.27 84.96% Dept: 1712 - City Property - Rents
Revenue 162,846.00 162,846.00 16,053.08 34,619.62 -128,226.38 78.74% Expense 53,445.00 53,445.00 1,336.00 12,101.84 41,343.16 77.36% Dept: 1712 - City Property - Rents Surplus (Deficit): 109,401.00 109,401.00 14,717.08 22,517.78 -86,883.22 79.42% Dept: 1720 - Finance Department
Revenue 8,200.00 8,200.00 617.00 1,616.50 -6,583.50 80.29% Expense 977,847.00 977,847.00 82,785.69 176,713.74 801,133.26 81.93% Dept: 1720 - Finance Department Surplus (Deficit): -969,647.00 -969,647.00 -82,168.69 -175,097.24 794,549.76 81.94% Dept: 2610 - Police Department
Revenue 1,049,432.00 1,069,534.00 209,101.76 215,952.76 -853,581.24 79.81% Expense 5,224,437.00 5,243,139.00 454,746.38 1,365,812.27 3,877,326.73 73.95% Dept: 2610 - Police Department Surplus (Deficit): -4,175,005.00 -4,173,605.00 -245,644.62 -1,149,859.51 3,023,745.49 72.45% Dept: 2615 - Police - Mad Net
Revenue 193,300.00 193,300.00 0.00 0.00 -193,300.00 100.00% Expense 303,692.00 303,692.00 0.00 0.00 303,692.00 100.00% Dept: 2615 - Police - Mad Net Surplus (Deficit): -110,392.00 -110,392.00 0.00 0.00 110,392.00 100.00% Dept: 2705 - Fire Department
Revenue 5,500.00 5,500.00 300.00 350.00 -5,150.00 93.64% Expense 517,716.00 517,716.00 34,443.67 119,164.14 398,551.86 76.98% Dept: 2705 - Fire Department Surplus (Deficit): -512,216.00 -512,216.00 -34,143.67 -118,814.14 393,401.86 76.80% Dept: 4705 - Community & Economic Development
Revenue 739,134.00 739,134.00 151,628.12 196,832.26 -542,301.74 73.37% Expense 1,180,198.00 1,180,198.00 76,362.52 162,548.48 1,017,649.52 86.23% Dept: 4705 - Community & Economic Development Surplus (Deficit): -441,064.00 -441,064.00 75,265.60 34,283.78 475,347.78 107.77% Dept: 6610 - Community Pool (OLD)
Revenue 2,000.00 3,600.00 67.00 3,628.00 28.00 0.78%
Expense 24,956.00 24,956.00 3,876.96 10,576.48 14,379.52 57.62% Dept: 6610 - Community Pool (OLD) Surplus (Deficit): -22,956.00 -21,356.00 -3,809.96 -6,948.48 14,407.52 67.46% Budget Report For Fiscal: 2025-2026 Period Ending: 08/31/2025 9/9/2025 8:50:10 AM Page 2 of 3
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 6615 - Senior Services
Expense 47,902.00 50,902.00 489.00 1,370.64 49,531.36 97.31% Dept: 6615 - Senior Services Total: 47,902.00 50,902.00 489.00 1,370.64 49,531.36 97.31% Dept: 6620 - Parks & Facilities
Revenue 79,597.00 79,597.00 20,453.00 20,453.00 -59,144.00 74.30% Expense 1,337,779.00 1,337,779.00 101,011.75 182,760.02 1,155,018.98 86.34% Dept: 6620 - Parks & Facilities Surplus (Deficit): -1,258,182.00 -1,258,182.00 -80,558.75 -162,307.02 1,095,874.98 87.10% Dept: 6625 - Community Relations
Revenue 24,408.00 24,408.00 131.00 575.20 -23,832.80 97.64% Expense 276,435.00 286,075.00 24,016.16 60,022.43 226,052.57 79.02% Dept: 6625 - Community Relations Surplus (Deficit): -252,027.00 -261,667.00 -23,885.16 -59,447.23 202,219.77 77.28% Report Surplus (Deficit): -800,015.00 -809,655.00 -505,868.93 -2,322,018.39 -1,512,363.39 -186.79% Budget Report For Fiscal: 2025-2026 Period Ending: 08/31/2025 9/9/2025 8:50:10 AM Page 3 of 3
Fund Summary
Fiscal
Activity
Variance
Favorable
Fund (Unfavorable)
Period
Activity
Current
Total Budget
Original
Total Budget
100 - General Fund -800,015.00 -809,655.00 -505,868.93 -2,322,018.39 -1,512,363.39 Report Surplus (Deficit): -800,015.00 -809,655.00 -505,868.93 -2,322,018.39 -1,512,363.39 9/9/2025 8:38:55 AM Page 1 of 1
Balance Sheet
Chowchilla, CA Account Summary
As Of 08/31/2025
Account Name Balance
Fund: 100 - General Fund
Assets
100-0100-0201 Petty Cash 500.00
100-0100-0202 Pre-Paid Postage Account 1,586.78
100-0100-0206 Cash Drawer 1,700.00
100-0100-0219 Lease Receivable 93,823.58
100-0100-0224 A/R MODULE ONLY RECEIVALBLES 348,432.26
100-0100-0226 Advance to Other Funds 389,382.82
100-0100-0227 Liens Receivables General Fund 165,807.42 100-0100-0230 Accounts Receivable-Utilities 62.80
100-0100-0244 Deposit for Sec. 125 1,278.90
100-0100-0291 Prepaid Expenses 58,142.25
100-0100-1900 Claim On Cash 7,552,759.83
Total Assets: 8,613,476.64 8,613,476.64
Liability
100-0200-0422 Bonds for Work-Refundable 3,500.00
100-0200-0480 Deferred Revenue 157,793.39
100-0200-0482 Unavailable Lease Revenue 50,823.48
100-0200-0499 Payroll Correction -46.83
100-0200-2901 Accounts Payable Pending 32,963.56
Total Liability: 245,033.60
Equity
100-0300-0601 Fund Balance 9,383,640.92
100-0300-0604 Reserve for Contingencies 910,223.00
100-0300-0605 Designated for Prepaid Items 239.50
100-0300-0611 Reserve for L/T A/R 389,382.82
100-0300-0615 SB1186 6,975.19
Total Beginning Equity: 10,690,461.43
Total Revenue 599,939.03
Total Expense 2,921,957.42
Revenues Over/Under Expenses -2,322,018.39
Total Liabilities, Equity and Current Surplus (Deficit): 8,613,476.64 Total Equity and Current Surplus (Deficit): 8,368,443.04
REPORT TO THE CITY COUNCIL
Item 4.1
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: September 23, 2025
AGENDA SECTION: Public Hearing
SUBJECT: APPROVE AND AUTHORIZE THE CITY ADMNISTRATOR TO CLOSE OUT THE 21-CDBG-10010 PROGRAM
PREPARED BY: Janae Lacey, Community and Economic Development Specialist ATTACHMENTS: 1. Resolution
2. Public Hearing Notice
3. CDBG Economic Development Loan Program Guidelines
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:
City staff recommends that the City Council of the City of Chowchilla:
• Receive the staff report and enter it in the record; and • Adopt Resolution approving and authorizing the 21-CDBG-10010 program closeout BACKGROUND:
CDBG Program regulations required that the City conduct a public hearing on all CDBG-related matters to provide for and encourage citizen participation, particularly by low- and moderate-income persons who reside in areas in which CDBG funds are used. Therefore, when the public hearing opened, the public was invited to comment on the City’s proposed submittal of 2021-2022 CDBG Grant applications and to make their comments known on the proposed activities.
A public notice was published in the March 20, 2021 issue of the Madera Tribune notifying the public of this public hearing. The City had previously published a public hearing notice in the March 14, 2020 issue of the Madera Tribune notifying the public of its intent to seek proposals for the Economic Development Loan Program. The public hearing scheduled to review submitted proposals to assist the City of Chowchilla with the implementation of the Economic Development Loan Program was scheduled for April 14, 2020.
On January 29, 2021, HCD released a NOFA announcing the availability of CDBG Program funds of approximately $30 million for the 2021 CDBG Program. Competitive applications were due by May 31, 2021. Eligible activities predominantly benefited low- and moderate-income Californians and included Economic Development, Housing and housing-related infrastructure, and Public Services.
Resolution No. 32-21 was passed and adopted on April 23, 2021. The City was awarded $500,000.00 for business assistance and for administration. The grant supported the following businesses to cover payroll and equipment, with up to $35,000 for each full-time equivalent job created or retained up to three employees:
• Chowchilla Auto Body - $105,000.00
• Farnesis’s Steakhouse (MAZ Enterprises) - $105,000.00 • The Sand Trap Bar & Grill (2 Pairs) - $105,000.00
• The Shirt Shak - $52,500
• Mountain Mike’s Pizza - $32,500
• Sitting Pretty - $30,000
• Grant Administration - $69,800.27
The City will be disencumbering $199.73 of the funds balance from this grant.
FISCAL IMPACT:
There is no fiscal impact to the City of Chowchilla for the closeout of the grant program.
ALTERNATIVES:
1. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended; or, to be addressed in City Council motion); or,
2. Deny; or,
3. Refer to City Staff for reconsideration of specific items to be addressed in City Council motion.
ACTIONS FOLLOWING APPROVAL:
City Administrator to execute and submit all required grant closeout materials to HCD.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA APPROVING THE CLOSE OUT OF 2021 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM – 21-CDBG-10010
WHEREAS, the City of Chowchilla received Community Development Block Grant (CDBG) funds for Economic Development in the amount of $500,000.00 from the CDBG Grant 21-CDBG10010; and WHEREAS, the City of Chowchilla is required to comply with all state and federal public participation requirements in the closeout process.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
1. The City Council hereby approves to disencumber $199.73 in CDBG funds from its grant program.
2. The City Administrator is authorized to sign and act on the City's behalf in all matters relating to the 21-CDBG-10010 grant closeout.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 23rd day of September, 2025 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
CITY OF CHOWCHILLA
PUBLIC HEARING NOTICE
NOTICE IS HEREBY GIVEN that the City of Chowchilla will conduct a public hearing on September 23, 2025 at 7:00pm, at the Chowchilla City Council Chambers located at 130 South Second Street, Chowchilla, CA 93610, in order to discuss and solicit comments on the submittal of the Community Development Block Grant (CDBG) accomplishments and acceptance of the closeout report for the following grant activities:
CDBG Grant 21-CDBG-10010
Economic Development $500,000.00 Award
$499,800.57__
$199.43
The City will be required to disencumber $199.43 of CDBG as grant administration was under budget. 100% of activity costs were expended to assist six businesses.
The purpose of this public hearing is to give citizens an opportunity to make their comments known regarding the accomplishments under the State administered CDBG Program. If you require special accommodations to participate in the public hearing, please contact Joann McClendon, City Clerk, City of Chowchilla, 130 South 2nd Street, Chowchilla, CA 93610, or you may telephone (559) 665-8615.
In addition, the proposed plan is available for review at the above address between the hours of 8:00 a.m. and 5:00 p.m. on Monday – Friday.
If you are unable to attend the public hearing, you may direct written comments to the City of Chowchilla, 130 South 2nd Street, Chowchilla, CA 93610, or you may telephone Joann McClendon at (559) 665-8615. In addition, information is available for review at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday – Friday.
The City of Chowchilla promotes fair housing and makes all its programs available to low- and moderate-income families regardless of age, race, color, religion, sex, national origin, sexual preference, marital status, or handicap.
Published 08/16/2025 in the Madera Tribune
Posted:
Chowchilla City Hall Building
Chowchilla Public Works Building
Chowchilla Website
No. 8642 - August 16, 2025
TABLE OF CONTENTS
1. INTRODUCTION .............................................................................................................1
1.1 Purpose ....................................................................................................................1
1.2 Definitions and Abbreviations....................................................................................1
1.3 Administration ...........................................................................................................2
2. TYPE OF ASSISTANCE AVAILABLE..............................................................................2
3. MEETING A CDBG NATIONAL OBJECTIVE..................................................................2
3.1 Low/Mod Income Owner Microenterprise – Priority Activity ......................................2
3.2 Low/Mod Job Retention – Priority Activity.................................................................2
3.3 Low/Mod Job Creation ..............................................................................................2
3.4 Urgent Need and Low/Mod Area Benefit ..................................................................3
4. ECONOMIC DEVELOPMENT PUBLIC BENEFIT STANDARD ......................................3
4.1 Low/Mod Job Retention and Job Creation National Objective Activities ...................3
4.2 Low/Mod Area Benefit National Objective Activities..................................................3
5. HUD CDBG REQUIREMENTS FOR ASSISTANCE TO A FOR-PROFIT ENTITY..........3
5.1 Restrictions on Duplication of Benefits......................................................................4
5.2 Prohibition of Job Pirating Activities ..........................................................................4
5.3 Unique Entity Identifier and Non-Debarment ............................................................4
6. EQUAL OPPORTUNITY MARKETING............................................................................4
7. APPLICANT ELIGIBILITY................................................................................................5
7.1 Eligible Applicants.....................................................................................................5
7.2 Ineligible Applicants ..................................................................................................5
8. USE OF FUNDS ..............................................................................................................5
8.1 Eligible Costs ............................................................................................................6
8.2 Ineligible Costs..........................................................................................................6
9. BUSINESS ASSISTANCE FORGIVABLE LOAN TERMS...............................................6
9.1 Maximum Loan Amount ............................................................................................6
9.2 Interest Rate .............................................................................................................6
9.3 Loan Term.................................................................................................................6
9.4 Loan Disbursement Schedule...................................................................................6
9.5 Loan Forgiveness .....................................................................................................7
9.6 Term of Payment ......................................................................................................7
9.7 Loan Fee...................................................................................................................7
9.8 Prepayment Penalty..................................................................................................7
9.9 Collateral Requirements ...........................................................................................7
10.CONFIDENTIALITY.........................................................................................................7
11.APPLICATION SUBMISSION REQUIREMENTS............................................................7
12.UNDERWRITING CRITERIA FOR BUSINESS ASSISTANCE FORGIVABLE LOANS...8
12.1 HUD Underwriting Objectives .................................................................................8
12.2 Program Criteria for Business Assistance Loans ....................................................8
12.3 Exceptions to Underwriting Criteria.........................................................................9
13.APPROVAL AND APPEAL PROCESS............................................................................9
13.1 Loan Advisory Committee.......................................................................................9
13.2 Approval/Denial.......................................................................................................9
13.3 Loan Disbursement.................................................................................................9
13.4 Appeal Process.......................................................................................................9
14.OTHER FEDERAL REQUIREMENTS.............................................................................9
14.1 Conflict of Interest .................................................................................................10
15.PORTFOLIO MANAGEMENT........................................................................................10
15.1 Ineligible Expenditure of Program Funds ..............................................................10
15.2 Loan Default Procedures ......................................................................................10
16.CONFLICT WITH FEDERAL LAW, REGULATION OR GUIDANCE .............................11 APPENDICES:
APPENDIX A – INCOME LIMITS FOR MADERA COUNTY...............................................11 APPENDIX B – LOAN UNDERWRITING CRITERIA SUMMARY.......................................12
1. INTRODUCTION
In response to economic hardships experienced by small businesses due to the COVID-19 pandemic, the City of Chowchilla (City) has established a business assistance program using Community Development Block Grant (CDBG) funding received from the U.S. Department of Housing and Urban Development (HUD). The COVID-19 Response Small Business Assistance Program (the Program) will provide assistance to small businesses affected by the COVID-19 pandemic with a focus on support for job retention for low- and moderate-income persons and microenterprise businesses. These guidelines are intended to establish the Program and are subject to review and amendment as needed to respond to the evolving economic environment resulting from the pandemic.
All federal requirements for CDBG funded assistance to for-profit entities will be followed unless waived or otherwise exempted by HUD.
1.1Purpose
The Program will provide financial assistance to small businesses with a physical location in the City of Chowchilla to minimize job losses resulting from the economic impacts of the COVID-19 pandemic.
The Program is designed to promote economic stability by providing relief in the form of a onetime forgivable loan for essential operating expenses and supplies to the City’s small businesses negatively impacted by COVID-19.
1.2 Definitions and Abbreviations
CARES Act – Coronavirus Aid, Relief and Economic Security Act.
CDBG – Community Development Block Grant funding received from HUD.
City – The City of Chowchilla, City staff, or agents designated by the City to act on its behalf.
Full Time Equivalent (FTE) Job – Equals at least 1,750 hours annually (approximately 34 hours per week). A total of two jobs may be added together to equal one FTE.
HUD – The U.S. Department of Housing and Urban Development.
Low/Mod person – A low- and moderate-income person is defined by HUD as a person whose family income does not exceed 80% of the HUD median income, adjusted for family size, for the Chowchilla area (see Appendix A for current income limits).
For COVID-19 related job creation or retention activities, a Low/Mod person may also be a person holding a job with annual wages that do not exceed 80% of the HUD median income limit for a one-person family (see Appendix A for current income limits).
Microenterprise – The CDBG program defines a Microenterprise as a business with five or fewer employees, one or more of whom own the business.
1.3 Administration
The City has secured the services of a qualified CDBG Business Loan Program underwriter who is responsible for working with the banks. Public lenders, originating and underwriting business loans, documenting compliance with CDBG regulations, and preparing the loan closing documents,
2. TYPE OF ASSISTANCE AVAILABLE
The maximum funding will be $35,000 per FTE job created and/or retained upon approval, not to exceed $105,000 per applicant. If the business meets the requirements in Section 9 below, the loan may be forgivable.
3. MEETING A CDBG NATIONAL OBJECTIVE
All CDBG funded activities must meet one of the three CDBG National Objectives:
• Provide benefit to Low/Mod income persons or neighborhoods; • Prevention or elimination of slums and blight; or
• Addressing an unplanned urgent need that poses a serious and immediate threat to the health and welfare of the community.
At least 70% of the City’s annual CDBG expenditures must meet the Low/Mod income National Objective.
COVID-19 funds give priority to Low/Mod Job Retention and Microenterprise activities. Business Assistance Forgivable Loans must meet a National Objective in at least one of the four following methods:
3.1 Low/Mod Income Owner Microenterprise – Priority Activity Available to Microenterprise businesses with five or fewer employees, one of which must be an owner with family income under the federal CDBG income limits (Appendix A). The City will verify owner’s family income using HUD approved methods.
3.2 Low/Mod Job Retention – Priority Activity
Available to all eligible businesses, including Microenterprise businesses. CDBG funds are used to support a business that would lose job(s) without assistance. The business must employ at least one full time equivalent (FTE) job. At least 51% of the retained jobs must be held by or made available to Low/Mod Persons.
3.3 Low/Mod Job Creation
Available to all eligible businesses, including Microenterprise businesses. The business must create at least one new full time equivalent (FTE) job and at least 51% of the jobs created must be held by or made available to Low/Mod Persons.
3.4 Urgent Need and Low/Mod Area Benefit
As noted above, the focus of the Program is to support job retention for Low/Mod income persons. However, in rare circumstances, business assistance may qualify under the Urgent Need or Low/Mod Area Benefit National Objectives. Funds must be used to prevent, prepare for, or respond to the COVID-19 pandemic.
Urgent Need requires that the City certify and document the following:
• The activity is designed to alleviate existing COVID-19-related conditions; • The conditions pose a serious and immediate threat to the health or welfare of the community and are of recent origin or recently became urgent; and • The City and the business are unable to finance the activity and that other sources of funds are not available.
Low/Mod Area Benefit may be used for businesses that provide necessary goods or services to persons living in an area with 51% or more low/mod income residents.
4. ECONOMIC DEVELOPMENT PUBLIC BENEFIT STANDARD
The Public Benefit Standard is not applicable to Microenterprise businesses or to activities approved under the Urgent Need National Objective.
4.1 Low/Mod Job Retention and Job Creation National Objective Activities Businesses must demonstrate that with the assistance of Program funds, they may be expected to retain or create at least one permanent full time equivalent (FTE) job for every $35,000 in funding received. This will be determined using the underwriting criteria below.
Only permanent jobs may be counted. If part time positions are used for the Public Benefit Test, no more than two positions may be added together to create the one FTE. Seasonal jobs normally may not be counted. Seasonal jobs may be counted only if the job season lasts long enough to provide sufficient hours and pay to be considered the employee’s main source of income. A minimum of six months would be acceptable, if a minimum of 34 hours is paid for each week during the season. Only two seasonal positions may be counted towards the 34- hour minimum.
4.2 Low/Mod Area Benefit National Objective Activities
The service area of the business must be 51% or more Low/Mod based on HUD census mapping data.
5. HUD CDBG REQUIREMENTS FOR ASSISTANCE TO A FOR-PROFIT ENTITY All federal requirements for CDBG assistance to for-profit entities will be followed unless waived or otherwise exempted by HUD.
5.1Restrictions on Duplication of Benefits
CDBG funds may not be used to supplant or duplicate private, federal, State, or local government funding.
The Applicant must disclose any funds received in response to the COVID-19 pandemic from private sources, and from any federal, State, or local government programs. Acceptance of other funding will not disqualify an applicant from the Program but may affect the amount of funds available or eligible costs. Applicants will provide personal and business bank statements. The City will review the statements to identify any unreported influx of cash.
If a Borrower receives funds from any source for the same costs that are funded under this Program, the Borrower must repay the duplicative funding. Either the CDBG business loan or the other funding source may be repaid. Other sources may include, but not are not limited to:
• Private sources including bank loans (not including documented loan from a relative); • Small Business Administration (SBA) Paycheck Protection Program (PPP), Economic Injury Disaster Loan Program (EIDL) or Economic Adjustment Assistance Program (EAA);
• State of California iBank Small Business Disaster Relief Loan Guarantee Program; • State of California Pandemic Unemployment Assistance; or • Any other federal, State, or local government program providing funding for items noted as eligible costs for this Program.
5.2Prohibition of Job Pirating Activities
CDBG funds may not be used to facilitate the relocation of a for-profit business from one labor market to another if the relocation is likely to result in a significant job loss to the original labor market.
5.3Unique Entity Identifier and Non-Debarment
The Unique Entity Identifier (UEI) is the official identifier for doing business with the U.S.
Government. Businesses must obtain a UEI to be eligible to receive assistance under the City’s Economic Development Loan Program. The Applicant and all business owners may not be under debarment or suspension in the federal System for Award Management (SAM.gov) to receive federal funding assistance.
6. EQUAL OPPORTUNITY MARKETING
Marketing of the Program will be accomplished through a variety of modes to provide all eligible small businesses within the City of Chowchilla with an opportunity to access funding. At a minimum, the Program will be announced in the local newspaper, with marketing brochures, information posted on the City website and social media, marketing through business-related newsletters, and other business venues.
7. APPLICANT ELIGIBILITY
7.1Eligible Applicants
Eligible applicants include locally owned restaurant, retail, and service businesses with a physical storefront/office location in the City of Chowchilla. Applicant businesses may be private for-profit business concerns, corporations, partnerships, or sole proprietorships.
Businesses must employee at least one full-time equivalent position (FTE), not counting the Owner. Businesses may have no more than 100 employees.
Applicants must have been financially viable a minimum of one year prior to the date of application submittal. Financial viability will be determined based on business and personal financial information.
Applicants must have been in business and employing people for a minimum of one year prior to the date of application submittal.
Applicants must have been in good standing with the City of Chowchilla a minimum of one year prior to the date of application submittal (e.g., no liens or judgments, no unresolved code violations, etc.).
Any bankruptcies must have been discharged at least 3 years .
7.2Ineligible Applicants
Federal CDBG regulations prohibit assistance to the following entities:
• Businesses or business owners are ineligible for assistance if a loan would create a conflict of interest as defined in this document or under HUD regulations. • Businesses or business owners that are debarred or suspended under a federal program are ineligible for assistance. Debarment/suspension status will be determined using the SAM.gov website.
• Professional sports teams.
• Privately owned recreational facilities that serve a predominately higher-income clientele. • A business or business owner that is the subject of unresolved findings of noncompliance related to previous CDBG assistance.
8. USE OF FUNDS
Funds provided by the Program must be used for the prevention of, preparation for, or in response to impacts from the COVID-19 pandemic. Financial assistance needed due to loss of revenue or increased costs due to the pandemic; due to related stay-at-home order, needed to address public health concerns related to the virus; or needed to retain job are considered to be in response to the COVID-19 pandemic.
8.1Eligible Costs
Use of Program funds is restricted to working capital for COVID-19 related expenses required to remain in business, to retain jobs for Low/Mod Persons; to create new jobs for Low/Mod Persons; or to address the COVID-19 pandemic. Examples of eligible costs include:
• Employee salaries and benefits;
• Lease, mortgage payments or insurance for buildings where employees are working; • Purchase of personal protective equipment (PPE), social distancing signage, thermometers, hand sanitizer dispensers, cleaning supplies and other items used to reduce the spread of the COVID-19 virus.
Utilities may be considered on a case-by-case basis. HUD does not allow the Program to provide funds to pay utilities administered by the City of Chowchilla. This is considered a conflict of interest under federal guidelines.
8.2Ineligible Costs
• Costs incurred prior to final loan approval unless allowed by HUD. • Costs incurred prior to the City’s completion of environmental review unless allowed by HUD.
• Costs already funded by private sources including private bank loans; or from federal, State, or local government programs.
• Costs associated with construction or renovation.
• Costs not associated with the prevention, preparation for, or in response to, effects of the COVID-19 pandemic.
9. BUSINESS ASSISTANCE FORGIVABLE LOAN TERMS
9.1Maximum Loan Amount
Maximum loan amount shall be $105,000 for up to three FTE jobs created and/or retained.
9.2Interest Rate
Loans will be at zero percent interest rate.
9.3Loan Term
The Loan will terminate upon completion of all program requirements and execution of the forgiveness requests submitted by project application with supporting documentation demonstrating all terms have been met.
9.4Loan Disbursement Schedule
The City will disburse 50% of loan funds upon execution of the Promissory Note and receipt of the Request for Initial Disbursement form signed by the Borrower. The remainder of loan funds will be disbursed upon receipt of documentation that the initial disbursement was spend on eligible costs and the Request for Final Disbursement form signed by the Borrower.
9.5Loan Forgiveness
The City may forgive 100% of the maximum $105,000 loan if:
• The borrower is in compliance with the terms of the loan; • The borrower has met the requirements of the Program; • The borrower has submitted payroll documentation as evidence of any Job Retention required under the Promissory Note;
• The borrower has provided evidence of payment of eligible costs to the City six months from the execution date of the Promissory Note;
• The borrower has returned any funds not expended on eligible costs one year from the execution date of the Promissory Note; and
• The borrower has submitted a Request for Loan Forgiveness form one year from the execution date of the Promissory Note.
9.6Term of Payment
If the borrower does not meet the requirements for loan forgiveness, repayment becomes due and payable one year from the execution date of the Promissory Note.
9.7Loan Fee
There are no loan fees.
9.8Prepayment Penalty
None.
9.9Collateral Requirements
All loans shall be secured by a Promissory Note. Other collateral is not required.
10.CONFIDENTIALITY
The information submitted by Applicants and income self-certification forms provided by employees will be treated as confidential by the City to the extent permitted under State and federal law. The Loan Review Committee receives a summary of business information, not detailed business, or personal information.
11.APPLICATION SUBMISSION REQUIREMENTS
Applications are available by contacting the City of Chowchilla Economic Development Department. Due to health concerns related to the COVID-19, virus electronic documents are preferred; however, paper loan applications are allowed.
Applications will be reviewed on a first come, first served basis until funding is exhausted or the program is terminated.
Applications must be completed in full and signed by a person authorized to execute contracts on behalf of the business. Applications must include all requested attachments to be considered complete and ready for review.
12.UNDERWRITING CRITERIA FOR BUSINESS ASSISTANCE FORGIVABLE LOANS Normal business lending underwriting practices are difficult to apply in the uncertain economic climate created by the COVID-19 pandemic. The pandemic has resulted in unprecedented shelter-in-place orders, layoffs and enforced business closures. As businesses slowly are allowed to reopen, new rules and procedures are needed to ensure the health and safety of employees, customers, and the community. The Program is designed to provide financing flexibility for businesses while still meeting federal CDBG business lending requirements.
Program underwriting criteria are summarized in Appendix B.
Review of applicants for CDBG assistance ensures that local economic needs are met and that the CDBG requirements are observed. The criteria below will be evaluated during the underwriting process to determine past earning record and future prospects; projected ability to pay fixed debt and expenses; and projected job retention or creation (if applicable).
12.1 HUD Underwriting Objectives
Program underwriting criteria are established to ensure that the following HUD required CDBG underwriting criteria are met for loans unless waived or otherwise exempted by HUD. • Project costs are reasonable;
• Other sources of financing needed for business success are committed; • Documentation of need for CDBG funds, including verification that CDBG funds are not substituted for non-Federal financial funding or support; • Business operations will be financially feasible with CDBG assistance; • To the extent practicable, the return on the Borrower’s equity investment will not be more than 20 percent of the return on investment; and
• To the extent practicable, CDBG funds will be disbursed on a pro-rata basis with other finances provided to the business.
HUD does not require the above criteria to be evaluated for Microenterprise businesses; however, the City is required to create its own underwriting criteria for lending to a Microenterprise.
12.2 Program Criteria for Business Assistance Loans
Applicant’s credit will be reviewed. Applicant and the business should demonstrate the ability to pay debts and bills and demonstrate good credit history a minimum of one year prior to the date of application submittal. To the extent practicable, Applicant’s financial projections should demonstrate the ability, with CDBG assistance, to pay debts and bills; and to retain and/or create any required jobs for a one-year period. Applicant’s financial projections should demonstrate the need for financial support as identified in the application.
12.3 Exceptions to Underwriting Criteria
The underwriting criteria are general guidelines that apply to most Applicants. Additional requirements or exceptions may be warranted, depending on the creditworthiness of the Applicant, the history of the business, or other Applicant-specific considerations.
13.APPROVAL AND APPEAL PROCESS
Applications will be reviewed on a first come, first served basis. Priority will be given to businesses providing Job Retention for Low/Mod Persons and to Low/Mod income Microenterprise business owners. Should any funding remain after priority businesses are assisted, businesses providing Job Creation for Low/Mod Persons will be considered.
13.1 Loan Advisory Committee
Once underwriting is completed, a summary of the business and underwriting criteria will be presented to the Loan Advisory Committee, which is responsible for making recommendations for approval or denial to the Director of Community and Economic Development. The Director of Community and Economic Development or his/her designee will make the final approval or denial. The loan summary and its contents will be kept confidential to the maximum extent possible.
13.2 Approval/Denial
If approved, the Applicant will be contacted to arrange to sign loan documents.
If denied, the Applicant will be provided with a written explanation of the denial and any appeal process that may be available within seven (7) days.
13.3 Loan Disbursement
Initial disbursement of 50% of approved funding will proceed as soon as all required documents are executed, and Borrower submits a signed Request for Initial Disbursement to the City.
Disbursement of remaining funds will be processed upon receipt of documentation that the initial disbursement was spent on eligible costs and the Borrower submits a Request for Final Disbursement to the City.
13.4 Appeal Process
An appeal process is established to provide full opportunity for applicants and their business's circumstances to be considered for assistance. Applicants denied assistance may request a second review by the Director of Community and Economic Development. Requests for appeal must be in writing and may be submitted through U.S. mail to: Director of Community and Economic Development, City of Chowchilla, 130 South 2nd Street, Chowchilla, CA 95678.
Application denials by the Director may not be appealed.
14.OTHER FEDERAL REQUIREMENTS
Federal requirements will be followed regarding anti-lobbying certification; prohibitions against payments of bonus or commissions; Clean Air and Water Act; equal opportunity; Affirmative Action; Americans with Disabilities Act (ADA) of 1990; flood disaster protection; federal labor standards provisions (also known as Davis Bacon); lead based paint hazards; federal National Labor Relations Board (NLRB) certification; procurement; program income; relocation, displacement and acquisition; and additional requirements as required by HUD.
14.1 Conflict of Interest
Per State CDBG regulation §7126 (California Code of Regulations, Title 25), any activities that create a conflict of interest as defined in federal CDBG regulations at 24 CFR 570.611 are prohibited. In general, the conflict-of-interest prohibition applies to any person who is an employee, agent, consultant, officer, or elected official or appointed official of a recipient of CDBG funds, or of any public agencies, or subrecipients that receive CDBG funds. These persons who are in a position to participate in a decision- making process or gain inside information regarding CDBG funds and CDBG funded activities are prohibited from obtaining a financial interest or benefit from a CDBG assisted activity.
15.PORTFOLIO MANAGEMENT
A loan file will be maintained for the period required under City and HUD file retention requirements. Loan files will be maintained for both approved and denied applications in compliance with City and HUD retention periods.
15.1 Ineligible Expenditure of Program Funds
Unless otherwise waived or exempted by HUD, loan funds that do not meet Program requirements must be repaid.
Repayment of loan funds that were not spent on eligible costs are to be entered into the City’s accounting system as a repayment of local funds rather than CDBG Program Income.
15.2 Loan Default Procedures
If a Borrower defaults on loan payments, every effort will be made to develop a workout plan with the business owner.
If the Borrower cannot fulfill the terms of the loan or cannot fulfill a workout plan, the City, at its sole discretion, may exercise one of more of the following options. The City will evaluate the cost in staff time, attorney fees and other expenses to determine the most effective and efficient course of action:
• Extend the time of payment or otherwise alter the terms of the remaining indebtedness; • Accept additional security of any kind, including USB filing on business assets, real property trust deeds or a personal guarantee from a third party; and/or • Write off a portion or the full amount of outstanding indebtedness.
16.CONFLICT WITH FEDERAL LAW, REGULATION OR GUIDANCE
If any portion of this document is in conflict with federal law, regulation, or guidance regarding the CDBG program, federal requirements will apply.
APPENDIX A
2022 INCOME LIMITS* FOR MADERA COUNTY
https://www.hcd.ca.gov/grants-and-funding/income-limits/state-and-federal-income-rent-and-loan-valuelimits *To be updated annually when HCD releases current year income limits
APPENDIX B
LOAN UNDERWRITING CRITERIA SUMMARY
B.1 ELIGIBLE LOAN APPLICANTS
Eligible EDLP Forgivable Loan applicants, here after called “Borrower Eligible for Loan Forgiveness” must meet the criteria outlined below and as amended by U.S. Department of Housing and Urban Development (HUD) and the California Housing and Community Development Department (HCD):
• Be an existing business with no more than 100 full-time equivalent (FTE) employees a minimum of one year prior to the date of application submittal and in financial distress as a result of the COVID 19 pandemic or other presidentially declared disaster (“disaster”) that has resulted in (or will result in) the loss of jobs, 51% are held by LMI individuals as a result of the COVID crisis.
• Is shown to have been financially viable a minimum of one year prior to the date of application submittal. Financial viability may be demonstrated by one or more of the following:
➢ A profit and loss statement (including income from operations, other income, cost of goods sold, operating expenses, taxes and fees, short-term debt service) showing profitable operations, (non-cash expenses such as depreciation, major capital investments and amortization of capital may be excluded). ➢ A cash flow forecast showing the expected potential for positive net income in subsequent periods demonstrated by accounts receivable, backlog, opening of new markets and expansion of customer base.
➢ A business plan that supports good prospects for viability going forward. • Be in operation a minimum of one year prior to the date of application submittal and be able to provide the prior year’s federal business tax return (with all schedules) or appropriate federal personal tax returns with appropriate business-related schedules and forms (e.g., Schedules C, D, E, SE, 1, 1099’s, etc.).
• Be an existing business with a previous history of creditworthiness that is 51% or more owned and operated by a U.S. Citizen(s) or permanent legal resident(s) • The creditworthiness determination will also include an assessment of the previous creditworthiness of any owners with a 20% or greater ownership interest. • Be able to provide Year-to-Date (YTD) financial statements a minimum of one year prior to the date of application submittal including (P&L statement, A/P Aging Report, A/R Aging Report, Debt Schedule).
• Have or developed the capacity to generate monthly financial statements (i.e., P&L Statement, A/P Aging Report, A/R Aging Report, Debt Schedule) following receipt of the loan.
• The business must be established to operate legally in the State of California [e.g., registration with the CA Secretary of State and/or Madera County as a “Doing Business As” (DBA) Fictitious Business Names Statement (FBNS)] with a valid City of Chowchilla Business License (if applicable). A FBNS will be required for all businesses. • The business must have:
➢ Required local, state, and federal permits.
➢ Proper insurance for current and proposed business activities. ➢ Be operating out of a location with zoning that allows for current and proposed business activities.
➢ An existing commercial lease with renewal options that extend, at a minimum, to the month and year designated as the final month and year of the loan agreement. A home-based business must have a comparable mortgage, lease or rental agreement that extends, at a minimum, to the same period required for a commercial lease. ➢ NOTE: If a Borrower is an existing business relocating to the City of Chowchilla or is a new startup business and does not have proper permits, licenses, leases, or insurance at the time of application, then these items can be made a condition of funding the loan.
B.2 INELIGIBLE LOAN APPLICANTS
Ineligible EDLP Loan applicants include those businesses for which any of the following are true:
• The resulting EDLP Loan will result in a “duplication” of funding from other disaster related funding programs (e.g., SBA PPP, SBA EIDL, insurance reimbursement, local/regional funding/grant programs) that will be used for the same expense. • The business and underwriter cannot establish a clear nexus between the financial impacts of the disaster and the need for EDLP funding.
• The business and/or business owners with a 20% business ownership interest have liens or pending lawsuits that may have an adverse impact on the financial viability of the business.
• The business’s physical place of business is located outside of the jurisdictional boundaries of the City of Chowchilla.
• The business’s physical place of business is located on tribal lands. • The business or any one of its principals is on the Federal debarred list. • The business or any of its principals have defaulted on any Federal debt. • The business or any of its principals have a relationship with the Lender that violates CDBG Conflict of Interest guidelines.
• The business’ goods or services involve the distribution, sale or use of cannabis or products containing cannabis or cannabis derivatives.
• The business is involved in a business activity prohibited by CDBG regulations (e.g., private golf club).
B.3 ELIGIBLE USES OF FUNDS FOR LOANS WITH FORGIVABLE LOAN TERMS The uses of EDLP funds for loans with forgivable loan terms are restricted to eligible uses as approved by HUD and HCD CDBG Program Guidelines.
Loan proceeds may be used to cover the following eligible costs:
• Operating Expenses (OE) and Working Capital (W/C) as defined below:
➢ OE includes primary expenses including, but not limited to, payroll, insurance, lease payments and utilities.
➢ W/C is any additional capital needs (e.g., inventory) with the amount to be net of OE. ➢ The amount of OE and W/C needs presented in financial and cash flow statements must reflect amounts per month that are supported by pre-disaster financial information (e.g., monthly financial statements or Year End business tax returns). • Purchase of furniture, fixtures, and equipment (FF&E) to support the business’ needs to re-open and/or operate as a result of the disaster. FF&E purchases that will trigger Federal or State prevailing wage requirements will be considered on a case-by-case basis.
• Refinancing of some forms of existing short-term debt when the refinancing complies with HUD and HCD CDBG underwriting guidelines, is done in conjunction with financing other eligible costs and contributes to the business’ ability to sustain operations and retain the required number of CDBG eligible jobs. NOTE: Examples of short-term debt that may be refinanced could include high interest credit cards or short-term loans from on-line lenders where the business can provide supporting documentation that clearly demonstrates that funds were used for eligible business purchases and expenses). • Loan funds will be disbursed as per the terms outlined in section B.8 B.4 LOAN REQUIREMENTS – CDBG NATIONAL OBJECTIVES INCLUDING
APPROVED WAIVERS
Borrowers that are eligible for HUD and HCD approved waivers must comply with CDBG National Objectives in accordance with the guidelines presented in Appendix M of the NOFA and any supplemental written guidance provided by HCD.
B.5 LOAN REQUIREMENTS – CDBG AND EDLP UNDERWRITING CRITERIA FOR
LOANS WITH FORGIVENESS TERMS
B.5.1 CDBG Underwriting Criteria
Eligible EDLP applicants for loans with forgiveness terms are underwritten in accordance with the following CDBG underwriting criteria.
• Project costs are reasonable as evidenced by 3rd party cost estimates (e.g., vendor quotes, copy of online search, etc.).
• All project costs are eligible per federal regulations and HCD guidelines. • All sources of project financing are committed to support the financial projections that demonstrate that, with EDLP funds, the business is likely to continue operations and retain (or re-create) the projected number of jobs (51% of which are filled by LMI individuals or, if lost due to normal turnover, will be may available to LMI individuals). This may include:
➢ Borrower or other private funds (proof of funds availability such as bank statements and a signed letter indicating that the funds will be contributed to the project are required).
➢ A detailed letter of interest from a financial institution outlining the loan amount, loan term, interest rate, collateral requirements, loan-to-value ratio, debt service coverage ratio (DSCR), etc. will be required for the underwriting process. ➢ An approval letter from another government, nonprofit or other business or infrastructure financing program.
• To the extent practicable, EDLP funds are not substituted for non-Federal financial support. This will include an assessment to ensure no duplication of funds from other federal, state, or private sources that may have been provided to assist the business in response to a disaster, economic downtown or other event. • The project is financially feasible based on the underwriter’s assessment of the items defined below:
➢ The management team has the capacity to execute the business plan and meet the financial projections (i.e., sales revenues, COGS, operating expenses, and profitability).
➢ The historic creditworthiness of owners with a 20% or greater interest or any member of the management team with check writing authority.
• The financial operating and cash flow projections:
➢ Are in line with the business’ previous seasonal fluctuations in financial performance and/or reflect anticipated conditions that may impact Revenues, COGS (if applicable), NOTE: A formal, signed commitment letter from the financial institution with the same loan amount, loan terms, interest rate, collateral requirements, loan-to-value ratio, DSCR, etc. will be required before EDLP funds will be released.
Operating Expenses and Profitability during the term of the EDLP. ➢ Show an ability for the business to reach a level of financial breakeven with EDLP and other funding during the term of the EDLP.
➢ Clearly demonstrate that the Borrower will generate sufficient income to retain (or recreate) the projected number of jobs within an agreed upon term established between the Borrower, the Administrator, and the Lender.
➢ Demonstrate that the business will meet the (DSCR) required by other lenders. ➢ Demonstrate that the business will generate sufficient revenue to provide the salaries, wages or draws needed by the owner(s) to cover their personal expenses taking into consideration other sources of income available to meet owners’ personal financial needs.
• As EDLP loans with forgiveness terms will be limited to businesses that have faced financial conditions that resulted in the loss of jobs or are in imminent danger of facing financial conditions that will result in the loss of jobs, underwriting will not include 1) an assessment of the return on owner’s equity invested in the project, nor 2) an assessment of the disbursement of EDLP funds on a pro-rata basis with other project financing.
The EDLP underwriting process for loans with forgiveness terms will require documentation to assess the ability of the business to sustain operations (e.g., documentation on other debt, historic business financial statements and tax returns for 2019, historic personal financial statements and tax returns for 2019, personal credit reports, financial projections and DSCR).
The EDLP underwriting process for loans with forgiveness terms will require documentation to assess the ability of the business to sustain operations (e.g., documentation on other debt, historic business financial statements and tax returns for a minimum of one year prior to the date of application, historic personal financial statements and tax returns for the year prior to the date of application, personal credit reports, financial projections and DSCR). However, the following additional (or more detailed) information may, at the underwriter’s discretion, be required due to the CBDG underwriting criteria outlined above and the willingness of the City of Chowchilla to consider higher risks loans in exchange for the project the CDBG National Objective and Public Benefit requirements outlined above.
• A detailed breakdown in the financial statements with line items showing:
➢ Salaries/wage, employment taxes and benefit expenses for existing employees with a breakdown for those employees that will be retained with the assistance from the EDLP loan and should align with the Job Tracking Form submitted with the Borrower’s application.
➢ A history of the business and brief bios of each of the key members of the management (e.g., CEO, CFO, CTO, etc.) and operating team (e.g., Production Manager, Sales Manager, etc.).
➢ A summary of the market(s) served and any adjustments to accommodate for disaster related impacts.
➢ A schedule of owner’s equity invested in the businesses and any new debt incurred prior to one year from the date of application (the debt summary should include the name of the source, the amount borrowed, loan terms, interest rate, current balance, etc.).
➢ A timeline outlining when funds from each source of financing will be expended (including EDLP and non-EDLP sources).
B.5.2 EDLP UNDERWRITING CRITERIA FOR LOANS WITH FORGIVENESS TERMS Eligible EDLP applicants for loans with forgiveness are underwritten in accordance with the following EDLP underwriting criteria.
• Business is located within the jurisdictional boundaries of the City of Chowchilla. • Financial Ratios:
➢ DSCR – an aggregate business DSCR of no lower than 1.0 (includes an aggregate of the DSCR for all non- EDLP debt financing).
➢ Global Cash Flows – an aggregate of business DSCR and personal cash needs are sufficient to cover personal operating expenses including a personal DSCR of no lower than 1.0.
➢ Net Income (after taxes and interest) sufficient to meet DSCR requirements outlined above.
• The Administrator will work closely with the eligible businesses to ensure they understand the requirements of the EDLP and the benefits of participating.
B.6 DETERMINATION OF LOAN AMOUNTS
EDLP loan with forgiveness terms will comply with HUD and/or HCD regulations and guidelines as outlined in NOFA Appendix M and other written documentation provided by HUD and/or the HCD.
B.7 DETERMINATION OF LOAN TERM
EDLP loan with forgiveness terms will comply with HUD and/or HCD regulations and guidelines as outlined in NOFA Appendix M and other written documentation provided by HUD and/or the HCD.
B.8 DETERMINATION OF LOAN INTEREST RATE
EDLP loan with forgiveness terms will comply with HUD and/or HCD regulations and guidelines as outlined in NOFA Appendix M and other written documentation provided by HUD and/or the HCD. It is anticipated that loans with forgiveness terms will be zero percent (0%) for the specified term of the loan unless otherwise specified by the HCD.
B.9 LOAN DISBURSEMENT – LOANS WITH FORGIVENESS TERMS
Loan disbursement for loans with forgiveness terms will be in accordance with HUD and HCD regulations, guidelines, or other written procedures.
Disbursement of loan proceeds will take place only after all conditions have been met and loan documents executed. The procedure for loan disbursement will vary depending upon the purpose of the loan funding as outlined below:
• Operating Expenses and Working Capital – to be disbursed at 50% upon execution of the Promissory Note and 50% after six months in an amount that aligns with the cash flow needs as presented in the pro forma financials provided by the Borrower during the application process and updated as necessary prior to loan closing or due to changing operating conditions following loan closing.
• Furniture, Fixtures & Equipment – to be paid directly to the vendor upon receipt of a valid invoice or to be paid to the borrower upon receipt of a valid invoice and proof of payment (e.g., cancelled check or paid credit card bill)
The Administrator will approve all disbursements and evaluate the sustained viability of the business prior to disbursing future monthly Operating Expense and/or Working Capital advances.
B.10 LOAN MONITORING AND COMPLIANCE FILES – LOANS WITH FORGIVENESS TERMS
Following closing, monitoring files will be set up. Two separate physical and/or electronic loan files shall be maintained. The first is the legal file which holds all the original executed loan documentation. This electronic and/or physical file shall be kept in Lender’s or Administrator’s fireproof vault or cloud-based backup for safekeeping. At a minimum the legal file shall include (if applicable):
• Promissory Note
• Loan Agreement with required CDBG language
• Deed of Trust
• General Security Agreement
• Personal Guaranty
• Corporate Guaranty
• Subordinate Agreement
• Life Insurance Policy and Agreement
• Hazard Insurance Policy and Agreement
• General Resolution
• Certificate of Secretary
• Opinion of Counsel
• Inter-creditor Agreement
• Documentation of Site Control (i.e., lease, deed of trust, etc.) The second is a credit file which will contain the day-to-day administrative records of the loan.
The credit file will include, at a minimum, the loan application and financial information associated with the application, loan memorandum, Lender LAC recommendation, disbursement records, reports of site visits, updated financial information provided by the Borrower, CDBG compliance data and other routine information related to the loan.
Application information should include the following as appropriate:
• Loan Disbursement Schedule
• Map verifying borrower is physically located within program boundaries • Documentation of compliance with federal acquisition requirements, if appropriate (e.g., land purchase)
• Documentation of compliance with federal debarred requirements • Copy of CDBG NEPA documents including Authorization to Use Grant Funds, if required (Original to be maintained in Lender’s Environmental Review Records file) • Copy of Documentation to determine Cost Reasonableness • Documentation to support National Objective/Public Benefit requirements for job retention that shows clear and objective evidence that jobs will be lost without CDBG assistance. • Signed CDBG Documents:
➢ Loan Certification Form
➢ Job Tracking Form (demonstrating CDBG compliance with LMI job creation/retention) ➢ No Conflict-of-Interest Certification
➢ No Job Anti-Pirating Certification
➢ Income Certification forms (including Part 5 if required or other required income certification documentation)
B.11 LOAN SERVICING – LOANS WITH FORGIVENESS TERMS
B.11.1 Loan Servicing Agent
Loan servicing will be conducted by the Administrator with the Lender.
B.11.3 Loan Servicing And Document Collections Procedures Once the loan is closed, the Borrower is entered into a forgivable loan servicing system. EDLP loan with forgiveness terms will be serviced as follows:
• Administrator to secure evidence of purchase and payment for FF&E purchased with EDLP funds for review and comparison to loan application documents and budgets to validate cost reasonableness and CDBG compliance (e.g., NEPA, Prevailing Wage, etc.).
If in noncompliance, Administrator and Lender will determine if corrective action is required and implement corrective action if necessary.
• Borrower to provide the following to the Administrator for review by the 15th of the month following the close of the previous month:
➢ P&L and Balance Sheet or a P&L, A/P Aging and A/R Aging statements. ➢ An updated Debt Schedule.
➢ Payroll records.
Once the loan is closed, the Administrator will monitor the loan to maintain the loan records in compliance with the Program objectives and CDBG guidelines. A servicing and documentation system will be maintained with a file for each borrower.
B.12 ONGOING MONITORING
Ongoing monitoring of loans with forgiveness terms will be handled as outlined above and in Section A.11 and A.12. Any significant variances will be reported to the LAC for further direction.
B.12.1 Forgiveness Monitoring, Compliance, and Reporting The guidelines for loan forgiveness monitoring and reporting will be refined upon receipt of final guidance and approval by the HCD.
B.12.2 Forgiveness Monitoring
Following loan closing the Administrator will collect and review the information outlined in Section B.10 monthly. Following the review, the Administrator will meet as necessary with Borrower either in person or via video conference to discuss current conditions and any adjustments that may be needed, or additional technical assistance provided. • If additional technical assistance is needed the Borrower will be connected with appropriate resources to assist them with this need.
• If Revenues and Operating Expense and Work Capital expenditures are in alignment with pro forma financial and cash flow projections (or if reasonable adjustments are warranted), Administrator to authorize Lender to disburse EDLP funds to support the next month’s Operating Expense and Working Capital allocation as per the pro formal financial and cash flow projections (with reasonable adjustments if warranted). • If Revenues and Operating Expense and Work Capital expenditures are NOT in alignment with pro forma financial and cash flow projections and there is evidence that the business will not be able to continue to sustain operations or retained the projected number of jobs, Administrator will discuss the situation with the Lender and make a determination to implement one of the following actions as appropriate:
➢ Reduce the amount of EDLP funds disbursed to support the next month’s Operating Expense and Working Capital needs in alignment with the reduced labor costs, etc. ➢ Terminate and write off the loan.
➢ If the Borrower fails to provide the required information by the 15th of the month as outlined above, the loan will be considered in default and all further loan disbursements will be halted until the Borrower is in compliance. If the Borrower fails to bring the loan into compliance in two consecutive months, the loan will be considered in default and the Administrator will develop options and present the loan to the LAC to determine the appropriate action.
B.13 FORGIVENESS COMPLIANCE
The loan will be determined to be forgivable if the Borrower meets the following criteria. • Borrower makes every effort to retain and/or re-create the agreed upon number of jobs for the minimum period designed in Appendix M of the CDBG NOFA, 51% of which were initially filled by LMI individuals and, if turnover occurs, agrees to make these positions available to an LMI individual.
• Borrower uses EDLP funds for eligible uses of funds as outlined in Section A.3, in accordance with the projects Sources and Uses Statement submitted as part of the loan application and in compliance with CDBG cost reasonableness requirements. • Provides the required monthly financial and payroll information monthly by the 15th of the month following the close of the previous month.
• Meets with the Administrator monthly via telephone or video conference to review financial performance, business needs, etc. for the term of the loan.
The EDLP funds loaned to the point will also be forgiven If one or more of the following occurs:
• The Borrower ceases business operations prior to the end of the loan term. • A determination is made between the Borrower, the Lender, the Administrator, and the LAC that every effort has been made to retain and/or re-create the agreed upon number of jobs but is unable to do so due to circumstances beyond the control of the Borrower (e.g., recurring disaster related closures or reduced operations due to government mandates, inability to find qualified employees to fill vacant positions, etc.).
B.14 FORGIVENESS REPORTING
Program reporting will conform to CDBG job retention reporting requirements including maintenance of Income Certification forms and payroll records for a minimum period of three (3) months for submission to HCD to certify job retention. Additional documentation will be provided if circumstances arise that result in the business’ inability to retain the projected number of jobs.
All other reporting will comply with HCD semi- annual and annual reporting requirements.
REPORT TO THE CITY COUNCIL
Item 6.1
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: September 23, 2025
AGENDA SECTION: New Business / Action Item
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA
DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 (REPLACEMENT OF CFD 2006-1), TO AUTHORIZE THE
LEVY OF SPECIAL TAXES THEREIN, AND TO INCUR BONDED
INDEBTEDNESS
PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: Resolution; description of 2007 bonds to be repaid and services authorized to be funded (Exhibit A); Rate and Method of Apportionment (Exhibit B); Form of Notice of Public Hearing (Exhibit C); and Boundary Map (presented in packet and on file with City Clerk)
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:
That the City Council adopt the attached Resolution to initiate the proceedings to form CFD No. 2025-2 (Replacement of CFD 2006-1) and conduct an election therein.
BACKGROUND:
The City Council has previously formed the City’s CFD No. 2006-1 (“CFD 2006-1”) in order to finance certain public infrastructure projects (the “Facilities”) and to finance certain municipal services (the “Services”). The City issued one series of special tax bonds of CFD 2006-1, on June 7, 2007 (the “2007 Bonds”), which bonds are currently outstanding in the principal amount of $4,990,000.
After discussion with developers and landowners within CFD 2006-1, the City has determined that changes to the Rate and Method of Apportionment for CFD 2006-1 are warranted in order to reduce special taxes within CFD 2006-1 and achieve a better cost of borrowing by refinancing the 2007 bonds which financed the Facilities previously constructed or acquired by the City. To that end, the City now intends to pursue the formation of a new Community Facilities District (“CFD 2025-2”) to replace CFD 2006-1, including replacing the Rate and Method of Apportionment of Special Taxes, issue new special tax bonds to refund the 2007 Bonds, and continue to finance the Services. Upon the refunding of the 2007 Bonds, the City plans to dissolve CFD 2006-1.
The plan requires authorization of the registered voters residing in CFD 2025-2 (which are also the residents of CFD 2006-1), including the authorization to (1) levy special taxes within CFD 2025-2 at the rates and pursuant to the new Rate and Method of Apportionment, and (2) issue up to $6,500,000 of bonds of CFD No. 2025-2, secured by the special taxes to be levied in CFD 2025-2.
The Resolution of Intention for consideration by the City Council, formally commences the proceeding to form CFD No. 2025-2, and sets a date and time for a public hearing on the issue to be conducted on October 28, 2025.
Following the close of the October 28, 2025 public hearing, the City Council will consider additional resolutions to (1) formally establish CFD 2025-2, and (2) call a special registered-voter all mail ballot election. After adopting these resolutions, an election will be conducted, on an election date to be specified in such resolutions, among the qualified electors (the registered voters within CFD 2025-2), under procedures specified in the Elections Code.
The Resolution of Intention includes
• the proposed Rate and Method of Apportionment specifying how the Special Taxes will be levied in CFD 2025-2;
• the description of the purposes of bonds to be issued for CFD 2025-2 (i.e., the refunding of the 2007 Bonds);
• the description of the Services; and
• the form of Notice of Public Hearing to be published prior to the October 28 public hearing date.
In addition, the proposed boundary map for CFD 2025-2 is included in the agenda packet and is on file with the City Clerk. The proposed boundary map will be recorded in the official maps of the County following the City Council’s adoption of the Resolution.
On September 9, 2025, the City Council adopted its Resolution #70-25, of the same title and content as the attached Resolution. The prior Resolution #70-25 set the required public hearing date as October 21, 2025. The attached Resolution rescinds and replaces Resolution #70-25, in order to instead set the public hearing date as of October 28, 2025, and restart the proceedings to establish CFD 2025-2, in order to align with the City Council’s regular meeting calendar.
REASON FOR RECOMMENDATION:
Formation of CFD 2025-2 and the authorization by the qualified voters to issue the bonds and levy the Special Tax, will result in a more desirable rate and method of apportionment of special taxes, benefitting all landowners within the current CFD 2006-1.
FISCAL IMPACT:
There is no fiscal impact to approve the resolution of intent to form the CFD. The cost associated with forming the CFD are being covered in part by Rancho Calera and AutoZone. The rest of the costs will be covered by the issuance of the bonds if the voters approve to do so.
ALTERNATIVES:
Do not approve the resolution and stay with the current CFD 2006-1.
ACTIONS FOLLOWING APPROVAL:
After the Council’s adoption of the Resolution of Intention, City staff, as well as the City’s consultants and legal counsel, will move forward with the proceedings for formation of CFD 2025-2, including recording of the boundary map, publishing of the notice of public hearing, preparation of the resolutions to be considered on October 28, 2025, and coordinating preparation of ballot materials for a the special election to be conducted in early 2026.
4931-4455-2228
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 (REPLACEMENT OF CFD 2006-1), TO AUTHORIZE THE LEVY OF SPECIAL TAXES
THEREIN, AND TO INCUR BONDED INDEBTEDNESS
WHEREAS, the City Council (the “City Council”) of the City of Chowchilla (the “City”) has adopted local goals and policies concerning the use of 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
WHEREAS, under the Act, the City Council may commence proceedings for the establishment of a community facilities district; and
WHEREAS, pursuant to the Act, the City Council previously formed the City of Chowchilla Community Facilities District No. 2006-1 (“CFD 2006-1”) and designated Improvement Area 1 (“Area 1”) therein; and
WHEREAS, on June 7, 2007, the City issued $8,615,000 of special tax bonds for CFD 2006-1 (the “2007 Bonds”) payable from special taxes levied on property in Area 1; and WHEREAS, the City Council previously formed the City of Chowchilla Community Facilities District No. 2023-1 (Replacement of CFD 2006-1) (“CFD No. 2023-1”) to provide for the refunding of the 2007 Bonds; and
WHEREAS, an unsuccessful special election related to the levy of special taxes by CFD No. 2023-1 and the issuance of bonds was held on February 20, 2024; and WHEREAS, no special tax lien has been recorded on behalf of CFD No. 2023-1, CFD No. 2023-1 has no authorization to levy any special tax, CFD No. 2023-1 is not obligated to pay any outstanding debt, and the City Council now desires to dissolve CFD No. 2023-1; and WHEREAS, the City Council intends to form a new community facilities district pursuant to the Act, to be known as the City of Chowchilla Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) (“CFD No. 2025-2”) and to issue special tax bonds for CFD No. 2025-2 to refund the 2007 Bonds, and to otherwise continue to provide the funding of municipal services that were originally authorized to be funded by CFD 2006-1; and WHEREAS, the City Council has determined that the establishment of CFD No. 2025-2 is consistent with and follows the City’s goals and policies for use of the Act; and WHEREAS, following the formation of CFD No. 2025-2, upon the issuance of special tax bonds for CFD No. 2025-2 and the defeasance of the 2007 Bonds, the City Council will dissolve CFD 2006-1, and will dissolve the lien of the special taxes for CFD 2006-1 on property in Area 1; and
WHEREAS, AutoZone Texas LLC (“AutoZone”) and Rancho Calera, LLC (“Rancho Calera”) are owners of a portion of the property in CFD 2006-1 and will benefit from the dissolution and replacement of CFD 2006-1 by reason of the expected lower special taxes if CFD No. 2025-2 is formed and special tax bonds are issued to defease and redeem the outstanding 2007 Bonds; and
4931-4455-2228 -2-
WHEREAS, the City has entered into Deposit/Reimbursement Agreements (the “Reimbursement Agreements”) with both AutoZone and Rancho Calera, whereby AutoZone and Rancho Calera will pay certain costs related to the formation of CFD No. 2025-2 and, subject to approval of the voters residing in CFD No. 2025-2, certain costs related to the issuance of special tax bonds, which issuance costs are subject to reimbursement from proceeds of bonds if and when issued for CFD No. 2025-2.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chowchilla that:
Section 1. Recitals. The above recitals are true and correct.
Section 2. Dissolution of CFD No. 2023-1. The City Council hereby dissolves CFD No. 2023-1.
Section 3. Rescission of Prior Resolution of Intention. The City Council hereby rescinds its Resolution #70-25 adopted on September 9, 2025, and replaces said resolution with this Resolution in its entirety.
Section 4. Intent to Establish Community Facilities District; Naming of CFD.
The City Council hereby declares that it proposes and intends to establish a community facilities district pursuant to the provisions of the Act, in the manner described below and for the purposes described herein. The community facilities district proposed to be formed shall be known as “Community Facilities District No. 2025-2 (Replacement of CFD 2006-1)” (“CFD No. 2025-2”).
Section 5. Boundaries of Proposed CFD. The proposed boundaries of CFD No. 2025-2 are as shown on the boundary map on file with the City Clerk, which boundaries are hereby approved. The City Council hereby directs the City Clerk to endorse the certificates set forth on the map indicating its filing in the office of the City Clerk and evidencing the date and adoption of this Resolution. The City Council further directs the City Clerk to record a copy of the map with the Madera County Recorder within 15 days after the adoption of this Resolution, in accordance with the provisions of Section 3111 of the California Streets and Highways Code.
Section 6. Purpose of CFD; Description of Municipal Services. CFD No. 2025-2 is proposed to be formed for the specific purpose of replacing CFD 2006-1 in order to achieve a lower cost of financing, for the benefit of the owners of property within CFD 2006-1. The purposes of CFD No. 2025-2 shall include the repayment of the 2007 Bonds and the provision of the municipal services (the “Services”) described in Exhibit A hereto.
Section 7. Levy of Special Tax. Except to the extent that funds are otherwise available to CFD No. 2025-2 to repay the 2007 Bonds or to pay for the Services, and/or pay the principal and interest as it becomes due on bonds of CFD No. 2025-2 issued to finance the repayment of the 2007 Bonds, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in CFD No. 2025-2, will be levied within CFD No. 2025-2 and collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the special tax among the parcels of real property within CFD No. 2025-2, in sufficient detail to allow each landowner within the proposed district to estimate the maximum amount such owner will have to pay, and which specifies the tax year after which no further special tax will be levied on land used for private residential purposes and which otherwise complies with applicable provisions of the Act, is described in Exhibit B attached hereto. 4931-4455-2228 -3-
Exhibit B specifies the conditions under which the special tax may be prepaid and permanently satisfied. Exhibit B also specifies the year after which no further special tax shall be levied against any parcel used for private residential purposes. Under no circumstances will the special tax levied against any parcel used for private residential purposes be increased by more than ten percent as a consequence of delinquency or default by the owner of any other parcel or parcels of land within CFD No. 2025-2.
The City Council finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to CFD No. 2025-2.
Section 8. Declaration of Necessity and Intention to Incur Debt. In order to repay the 2007 Bonds, it is necessary to incur bonded indebtedness secured by the special tax levied within CFD No. 2025-2 as described herein. The proposed bonded indebtedness would be incurred for the purposes contemplated herein, payment of the costs of issuance of the bonds issued for CFD No. 2025-2, funding a debt service reserve fund, and payment of other costs authorized by the Act. It is the intention of the City Council to cause bonds of the City to be issued for CFD No. 2025-2 pursuant to the Act and for the purposes described herein.
Section 9. Amount of Proposed Debt; Certain Terms. The bonds proposed to be issued for CFD No. 2025-2, if so issued, shall be in the aggregate principal amount of not to exceed $6,500,000, shall bear interest payable semi-annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof.
Section 10. Tender of Bonds for Payment of Taxes. The City Council reserves to itself the right and authority to allow any interested owner of property in CFD No. 2025-2, subject to the provisions of Section 53344.1 of the Act and such requirements as it may otherwise impose, and any applicable prepayment penalties as prescribed in the indenture or fiscal agent agreement for any bonds of the City for CFD No. 2025-2, to tender to the Finance Director of the City in full payment or part payment of any installment of special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, in the manner described in Section 53344.1 of the Act.
Section 11. Voter Approval. The levy of said proposed special tax within CFD No. 2025-2, the incurrence of bonded indebtedness, and the establishment of an appropriations limit for CFD No. 2025-2 shall be subject to the approval of the qualified electors of CFD No. 2025-2 at a special election. The proposed voting procedure shall be by mailed ballots among the registered voters residing in CFD No. 2025-2.
Section 12. Exempt Properties. Except as may otherwise be provided by the Act or the rate and method of apportionment of the special tax for CFD No. 2025-2, all lands owned by any public entity, including the United States, the State of California and/or the City, or any departments or political subdivisions of any thereof, shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the repayment of the 2007 Bonds, of the Services, of the issuance and repayment of bonds by the City for CFD No. 2025-2, and of any expenses of CFD No. 2025-2.
Section 13. Hearing Report. The City Council hereby directs the City Administrator to study the proposed CFD No. 2025-2 and, at or before the time of the hearing, to cause to be prepared and filed with the City Council a report containing:
4931-4455-2228 -4-
a. a brief description of the 2007 Bonds, the procedure for repayment and/or redemption of same, and the fair and reasonable cost of repaying and redeeming the 2007 Bonds, including the incidental expenses in connection therewith; and b. a brief description of the Services by type, and the fair and reasonable cost of providing the Services, including the incidental expenses in connection therewith.
The report shall be made a part of the record of the public hearing provided for below.
Section 14. Public Hearing. The City Council hereby fixes 4:00 p.m., or as soon thereafter as practicable, on Tuesday, October 28, 2025, at the regular meeting place of the City Council, City Council Chambers, City Hall, 130 S. 2nd Street, Chowchilla, California, as the time and place for a consolidated public hearing on the questions of whether the public interest, convenience and necessity require the establishment CFD No. 2025-2, the levy of special taxes therein, and the incurrence of bonded indebtedness.
Section 15. Notice of Hearing. The City Council directs the City Clerk to publish a notice of the consolidated hearing, in substantially the form attached hereto as Exhibit C, once not later than seven days prior to the date fixed for the hearing, in a newspaper of general circulation published in the area of CFD No. 2025-2.
Section 16. Effective Date. This Resolution shall take effect upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 23rd day of September, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
4931-4455-2228 A-1
EXHIBIT A
CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(REPLACEMENT OF CFD 2006-1)
DESCRIPTION OF 2007 BONDS TO BE REPAID AND SERVICES
AUTHORIZED TO BE FUNDED
2007 Bonds to be Repaid
It is intended that CFD No. 2025-2 be authorized to repay the City of Chowchilla Community Facilities District No. 2006-1, Improvement Area 1, Special Tax Bonds, Series 2007, on any date on or before their maturity.
Services
The Services to be funded, in whole or in part, by CFD No. 2025-2 include police protection services and fire protection and suppression services, including but not limited to (i) the cost of contracting services, (ii) equipment, vehicles, ambulances and paramedics, fire apparatus and supplies, (iii) park maintenance, and (iv) storm drainage system operation and maintenance, (v) the salaries and benefits of City staff that directly provide police protection services and fire protection services and suppression services and the services described in clauses (iii) and (iv), and (vi) City overhead costs associated with providing such services within CFD No. 2025-2.
Other
Other costs and expenses permitted to be funded with the levy of special taxes within CFD No. 2025-2 include:
1. Costs related to the formation of CFD No. 2025-2.
2. Administrative expenses related to CFD No. 2025-2, including the direct and indirect expenses incurred by the City in carrying out its duties with respect to CFD No. 2025-2 (including, but not limited to, the levy and collection of the special taxes), the fees and expenses of attorneys, any fees of the County of Madera related to CFD No. 2025-2 or the collection of special taxes, an allocable share of the salaries of the City staff directly related to the administration of CFD No. 2025-2 and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the Services authorized to be funded by CFD No. 2025-2, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to CFD No. 2025-2.
3. Bond related expenses, including underwriters discount, municipal advisor fees and expenses, appraisal and absorption study costs, reserve fund, capitalized interest, bond and disclosure counsel fees and expenses, trustee or fiscal agent fees and expenses, City costs and expenses related to any bonds and disclosure materials, and all other incidental expenses. 4931-4455-2228 B-1
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(REPLACEMENT OF CFD 2006-1)
[Attached]
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(REPLACEMENT OF CFD 2006-1)
A Special Tax, as hereinafter defined, shall be levied and collected within of the City of Chowchilla Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) each Fiscal Year commencing in Fiscal Year 2026/27, in an amount determined by the application of the procedures below. All Taxable Property, 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. 2025-2 including, but not limited to, the following: the costs of computing the Annual Facilities Special Tax Requirement, the Annual Services 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 any paying agents/fiscal agents/trustees related to CFD No. 2025-2 Bond payments (including the fees and expenses of related counsel); 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. 2025-2 or CFD No. 2025-2 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. 2025-2 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. 2025-2. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-2 for any other administrative purposes of CFD No. 2025-2.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 2 “Annual Bond Payment Special Tax Requirement” means that amount required in any Fiscal Year for CFD No. 2025-2 to (1) pay Debt Service on all Outstanding CFD No. 2025-2 Bonds due in the Debt Year that commences in such Fiscal Year; (2) pay debt service on bonds expected to be issued by CFD No. 2025-2 due in the Debt Year that commences in such Fiscal Year; (3) Administrative Expenses related to the Bond Payment Special Tax; (4) provide any amount required to establish or replenish a reserve fund in connection with any CFD No. 2025-2 Bonds; and (5) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Bond Payment Special Tax levied in the previous Fiscal Year as determined by the CFD Administrator, as may be limited by the Act, and without duplicating any amounts described in clauses (3) or (4). 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. 2025-2 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 Bond Payment Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding CFD No. 2025-2 Bonds or other indebtedness as determined by the CFD Administrator.
“Annual Services Costs” means the annual amount determined by the CFD Administrator as reasonable needed to fund the Authorized Services authorized to be funded by CFD No. 2025-2 for the applicable yearly period.
“Annual Services Special Tax Requirement” means that amount required in any Fiscal Year for CFD No. 2025-2 to (1) pay Administrative Expenses related to the Services Special Tax; (2) pay the Annual Services Costs; (3) pay the amount required to establish or replenish any reserve or replacement fund established for Authorized Services; and (4) provide an amount equal to reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for Services Special Tax levied in the previous Fiscal Year as determined by the CFD Administrator, as may be limited by the Act, and without duplicating any amounts described in clause (1). The amounts referred to in clauses (1) through (4) 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. 2025-2 Annual Services Costs to the extent that such balances are available to apply against the Annual Services Costs without depleting any reserve or replacement fund, (ii) proceeds from the collection of penalties associated with delinquent Services Special Tax, and (iii) any other revenues available to pay directly for Annual Services Costs as determined by the CFD Administrator. “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.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 3 “Assigned Bond Payment Special Tax” means the Assigned Bond Payment 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 Services” means the services authorized to be funded in whole or in part, by CFD No. 2025-
2. “Backup Special Tax” means the Backup Bond Payment Special Tax applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with the applicable subsection of Section C below. “Bond Payment Special Tax” 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. 2025-2 to fund the Annual Bond Payment Special Tax Requirement.
“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 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 Assessor’s Data. In the event that the Assessor’s Data does not show Building Square Feet, other records of the City or County shall be used as determined by the CFD Administrator.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Bond Payment Special Tax Requirement, the Annual Services Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes. “CFD No. 2025-2” means City of Chowchilla Community Facilities District No. 2025-2 (Replacement of CFD 2006-1), established by the City Council pursuant to the Act. “CFD No. 2025-2 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. 2025-2 under the Act, and secured by pledge of the Bond Payment Special Tax.
“City” means the City of Chowchilla, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2025-2. “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. 2025-2 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 in CFD No. 2025-2 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, Undeveloped Property, Taxable Property Owner’s Association Property and Taxable Public Property.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 4 “Exempt Property” means all property located within the boundaries of CFD No. 2025-2 which is exempt from the Special Tax pursuant to the Act or Section G below. “Final Map Property” means, in any Fiscal Year, all Residential Lots created within a Final Subdivision Map which has 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. “Improved Square Foot(age)” means, for Industrial Parking Facility Property, that paved square footage used for parking vehicles plus the structure square footage associated with any office or building on the property, as shown in Assessor’s Data or in City building permit data. “Industrial Parking Facility Property” means all Assessor’s Parcels of Developed Property used for the temporary parking or storage of vehicles for a fee.
“Industrial Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for a structure to be used for an industrial purpose, including Industrial Parking Facility Property, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 2025-2 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. “Maximum Bond Payment Special Tax” means the Maximum Bond Payment 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.
“Maximum Services Special Tax” means the Maximum Bond Payment 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.
“Multi-Family Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Residential Property with two or more Units that share a single Assessor’s Parcel Number, are offered for rent to the general public, and cannot be purchased by individual homebuyers, according to Assessor’s Data or as otherwise known by the CFD Administrator. Multi-Family Residential Property also means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with one Unit with a single Assessor’s Parcel Number that is a condominium pursuant the definition in Civil Code Section 4125. “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.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 5 “Open Space Property” means property within the boundaries of CFD No. 2025-2 which (i) has been designated with specific boundaries and Acreage on a final subdivision map as open space, (ii) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or (iii) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space.
“Outstanding CFD No. 2025-2 Bonds” means all CFD No. 2025-2 Bonds which are outstanding under and in accordance with the provisions of the Indenture.
“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. 2025-2 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. 2025-2 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. 2025-2.
“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. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more residential Units. “Services Special Tax” 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. 2025-2 to fund the Annual Services Special Tax Requirement.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for a residential structure intended as a single primary Unit. “Special Tax(es)” means collectively Bond Payment Special Tax and Services Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 2025-2. “State” means the State of California.
“Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD No. 2025-2 that are not exempt from the Special Tax pursuant to law or Section G below.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 6 “Taxable Property Owner’s Association Property” means all Assessors Parcels of Property Owner’s Association Property that are not exempt pursuant to Section G herein. “Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt pursuant to Section G 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 a 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 Bond Payment Special Tax, but shall be considered a Unit for the purposes of the Services Special Tax.
“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2025- 2 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 Taxes pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of any CFD No. 2025-2 Bonds, any Assessor’s Parcels that received 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 Bond Payment 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. 2025-2 for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Bond Payment Special Tax and Maximum Services 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 Units or Acreage each Parcel contains; (iii) the property type, i.e., Residential Property and Non-Residential Property, etc.; and (iv) the Annual Bond Payment Special Tax Requirement and Annual Services Special Tax Requirement for the Fiscal Year.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 7 C. MAXIMUM BOND PAYMENT SPECIAL TAX RATES
The Maximum Bond Payment Special Tax for each Assessor’s Parcel shall be the greater of (i) the amount derived by application of the Assigned Bond Payment Special Tax or (ii) the amount derived by application of the Backup Bond Payment Special Tax.
1. Assigned Bond Payment Special Tax
The Assigned Bond Payment Special Tax for each Assessor’s Parcel is shown in Table 1.
TABLE 1
ASSIGNED BOND PAYMENT SPECIAL TAX
FISCAL YEAR 2026/27
Land Use
Class Development Class Description
Assigned Bond
Payment Special Tax
1 Developed Property, Final Map
Property, Taxable Property Owner’s
Association Property, Taxable Public
Property
Single Family Residential
Property
$1,040.40 per Unit
2 Developed Property, Final Map
Property, Taxable Property Owner’s
Association Property, Taxable Public
Property
Multi-Family Residential
Property
$520.20 per Unit
3 Developed Property Accessory Dwelling Unit $0 per Unit 4 Developed Property, Final Map
Property, Taxable Property Owner’s
Association Property, Taxable Public
Property
Non-Residential Property $2,080.80 per Acre
5 Undeveloped Property Undeveloped Property $2,601.00 per Acre
2. Backup Bond Payment Special Tax
The Fiscal Year 2026/27 Backup Bond Payment Special Tax will equal $3,121.20 per Acre.
3. Increase in the Assigned Bond Payment Special Tax and Backup Bond Payment Special Tax On each July 1, commencing on July 1, 2027, the Assigned Bond Payment Special Tax and the Backup Bond Payment Special Tax 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. 2025-2 (Replacement of CFD 2006-1) Page 8
4. Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Bond Payment Special Tax levied on an Assessor’s Parcel shall be the sum of the Bond Payment Special Tax for all Land Use Classes located on that Assessor’s Parcel.
D. MAXIMUM SERVICES SPECIAL TAX RATES
The Maximum Services Special Tax for each Assessor’s Parcel is shown in Table 2.
TABLE 2
MAXIMUM SERVICES SPECIAL TAX
FISCAL YEAR 2026/27
Land Use
Class Development Class Description
Maximum Services Special
Tax
1 Developed Property Single Family Residential Property $952.18 per Unit 2 Developed Property Multi-Family Residential Property $952.18 per Unit 3 Developed Property Accessory Dwelling Unit $380.88 per Unit 4 Developed Property Industrial Property
$0.2251 per Improved or
Building Square Foot
5 Undeveloped Property Undeveloped Property $0 per Acre
1. Increase in the Maximum Services Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Services Special Tax shall be increased by an amount equal to three percent (3%) of the amount in effect for the previous Fiscal Year.
2. Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Services Special Tax levied on an Assessor’s Parcel shall be the sum of the Services Special Tax for all Land Use Classes located on that Assessor’s Parcel.
E. METHOD OF APPORTIONMENT OF THE BOND PAYMENT SPECIAL TAX Commencing with Fiscal Year 2026/27 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Bond Payment Special Tax Requirement and shall levy the Bond Payment Special Tax until the amount of the Bond Payment Special Tax levied equals the Annual Bond Payment Special Tax Requirement. The Bond Payment Special Tax shall be levied each Fiscal Year as follows:
First: The Bond Payment Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the applicable Assigned Bond Payment Special Tax to satisfy the Annual Bond Payment Special Tax Requirement.
Second: If additional monies are needed to satisfy the Annual Bond Payment Special Tax Requirement after the first step has been completed, the Bond Payment Special Tax shall be levied Proportionately on City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 9 each Assessor’s Parcel of Final Map Property at a rate up to 100% of the Maximum Bond Payment Special Tax for Final Map Property to satisfy the Annual Bond Payment Special Tax Requirement.
Third: If additional monies are needed to satisfy the Annual Bond Payment Special Tax Requirement after the second step has been completed, the Bond Payment Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at a rate up to 100% of the Maximum Bond Payment Special Tax for Undeveloped Property to satisfy the Annual Bond Payment Special Tax Requirement.
Fourth: If additional monies are needed to satisfy the Annual Bond Payment Special Tax Requirement after the first three steps have been completed, then the levy of the Bond Payment Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Bond Payment Special Tax is determined through the application of the Backup Bond Payment Special Tax shall be increased in equal percentages from the applicable Assigned Bond Payment Special Tax up to 100% of the Maximum Bond Payment Special Tax for each such Assessor’s Parcel to satisfy the Annual Bond Payment Special Tax Requirement.
Fifth: If additional monies are needed to satisfy the Annual Bond Payment Special Tax Requirement after the first five steps have been completed, then the Bond Payment Special Tax shall be levied Proportionately on all Taxable Public Property at a rate up to 100% of the Maximum Bond Payment Special Tax for Taxable Public Property to satisfy the Annual Bond Payment Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Bond Payment Special Tax levied against any Assessor’s Parcel of Residential Property in any Fiscal Year be increased as a consequence of the delinquency or default in the payment of the Bond Payment Special Tax by the owner or owners of any other Taxable Property by more than ten percent above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.
F. METHOD OF APPORTIONMENT OF THE SERVICES SPECIAL TAX
Commencing with Fiscal Year 2026/27 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Services Special Tax Requirement and shall levy the Services Special Tax until the amount of the Services Special Tax levied equals the Annual Services Special Tax Requirement. The Services Special Tax shall be levied each Fiscal Year as follows:
First: The Services Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100%of the applicable Assigned Services Special Tax to satisfy the Annual Services Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Services Special Tax levied against any Assessor’s Parcel of Residential Property in any Fiscal Year be increased as a consequence of the delinquency or default in the payment of the Services Special Tax by the owner or owners of any other Taxable Property by more than ten percent above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.
G. EXEMPTIONS
1. Public Property, that is not exempt from the Bond Payment Special Tax pursuant to the Act, shall be classified as Taxable Public Property. Taxable Public Property shall be subject to the levy of the Bond City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 10 Payment Special Tax and shall be taxed Proportionately as part of the fifth step in Section E above, at up to 100% of the applicable Maximum Bond Payment Special Tax for Taxable Public Property.
2. No Services 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.
H. 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 Council 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.
I. 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. 2025-2 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. 2025-2 Bonds.
In addition, the interpretation and application of any section of this document shall be at the CFD Administrator’s discretion.
J. 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. 2025-2. 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. 2025-2 (Replacement of CFD 2006-1) Page 11 K. PREPAYMENT OF BOND PAYMENT SPECIAL TAX
1. Prepayment in Full
The Bond Payment Special Tax obligation of an Assessor's Parcel of Developed Property, Taxable Property Owner’s Association Property, Taxable Public Property, or Final Map Property may be prepaid and permanently satisfied as described herein; provided that there are 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 Bond Payment 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. 2025-2 Bonds, if any. If a prepayment is made prior to the issuance of CFD No. 2025-2 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 Bond Payment Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption 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 Bond Payment 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, Taxable Property Owner’s Association Property, Taxable Public Property, and Final Map Property compute the Assigned Bond Payment Special Tax and Backup Bond Payment Special Tax.
3. a. Divide the Assigned Bond Payment Special Tax computed pursuant to Step 2 by the total estimated Assigned Bond Payment Special Tax for CFD No. 2025-2 based on the Bond Payment Special Tax which could be charged in the current Fiscal Year.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 12 b. Divide the Backup Bond Payment Special Tax computed pursuant to Step 2 by the total estimated Backup Special Bond Payment Tax for CFD No. 2025-2 which could be charged in the current Fiscal Year.
c. Determine which quotient computed pursuant to Step 3.a or 3.b is larger (the “Maximum Bond Payment Special Tax Percentage”).
4. Multiply the Maximum Bond Payment Special Tax Percentage by the outstanding CFD No. 2025-2 Bonds to compute the principal amount of outstanding CFD No. 2025-2 to be redeemed (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the outstanding CFD No. 2025-2 Bonds to be redeemed (the “Redemption Premium”) determined by reference to the Indenture.
6. 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. 2025-2 Bonds (the “Interest Amount”).
7. 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. 2025-2 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
8. If reserve funds for the outstanding CFD No. 2025-2 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. 2025-2 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.
9. If any capitalized interest for the outstanding CFD No. 2025-2 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”).
10. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 5, 6, and 7 less the amount computed pursuant to Steps 8 and 9 (the “ Prepayment Amount”).
11. From the Prepayment Amount, the amounts computed pursuant to Steps 4, 5, 6, and 7 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem outstanding CFD No. 2025-2 Bonds or make Debt Service payments. The amount computed pursuant to Step 7 shall be retained by the City for the payment of Administrative Fees and Expenses.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 13 The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of outstanding CFD No. 2025-2 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. 2025-2 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 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. 2025-2 Bonds plus annual Administrative Expenses, as reasonably estimated by the CFD Administrator.
2. Prepayment in Part
The Bond Payment Special Tax may be partially prepaid, provided that a partial prepayment may be made only after all authorized CFD No. 2025-2 Bonds have been issued and only if there are no delinquent Annual 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 K.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 K.1 F = the percentage of the Special Tax Prepayment Amount calculated according to Section K.1 to be prepaid
The Bond Payment 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 Bond Payment 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 Bond Payment 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 K.1, and (ii) indicate in the records of CFD No. 2025-2 that there has been a partial prepayment of the Bond Payment Special Tax and that a portion of the Bond Payment Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Bond Payment Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section E.
City of Chowchilla
Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) Page 14 L. PREPAYMENT OF SERVICES SPECIAL TAX
The Services Special Tax may not be prepaid.
M. TERM
The Bond Payment Special Tax shall be levied and collected as needed to fund the Annual Bond Payment Special Tax Requirement for up to 13 years from the initial levy of the Bond Payment Special Tax. In any event no Bond Payment Special Tax shall be levied for CFD. No. 2025-2 after the 2036/37 Fiscal Year.
The Services Special Tax shall be levied commencing in Fiscal Year 2026/27 to the extent necessary to satisfy the Annual Services Special Tax Requirement and shall be levied each Fiscal Year thereafter in perpetuity for as long as required to satisfy the Annual Services Special Tax Requirement. 4931-4455-2228 C-1
EXHIBIT C
[Form of]
NOTICE OF PUBLIC HEARING
ON PROPOSED ESTABLISHMENT OF A COMMUNITY
FACILITIES DISTRICT AND ISSUANCE OF DEBT
CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(Replacement of CFD 2006-1)
Notice is hereby given that the City Council of the City of Chowchilla will conduct a public hearing on Tuesday, October 28, 2025, at 4:00 p.m. or as soon thereafter as practicable, in the Chowchilla City Council Chambers located at 130 South Second Street, Chowchilla, California, to consider the following:
INTENT TO FORM
CITY OF CHOWCHILLA
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(REPLACEMENT OF CFD 2006-1)
On September 23, 2025, the City Council of the City of Chowchilla adopted a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 (REPLACEMENT OF CFD 2006-1), TO AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN, AND TO INCUR BONDED INDEBTEDNESS” (the “Resolution of Intention”).
Reference is hereby made to the Resolution of Intention on file in the office of the City Clerk of the City of Chowchilla for further particulars.
In the Resolution of Intention, the City Council declared its intention to form the City of Chowchilla Community Facilities District No. 2025-2 (Replacement of CFD 2006-1) to fund costs of the repayment of certain 2007 Bonds and costs of municipal services identified in an exhibit to the Resolution of Intention. The proposed boundaries of the community facilities district were identified, and the Resolution of Intention identified a proposed special tax to be levied on real property to be included in the community facilities district to pay for costs of the repayment of the 2007 Bonds and the municipal services, and/or to pay debt service on bonds to be issued, in a principal amount not to exceed $6,500,000, for the community facilities district to finance costs of the repayment of the 2007 Bonds.
In the Resolution of Intention, the City Council provided that the levy of the special tax will be subject to a mailed ballot election among the registered voters residing in the community facilities district. The City Council directed the City Administrator to prepare a report on the community facilities district, and called for a public hearing on the community facilities district and issuance of debt.
At the hearing, the testimony of all interested persons or taxpayers for or against the establishment of the community facilities district, the extent of the community facilities district, the repayment of the 2007 Bonds, the proposed issuance of bonds for the community facilities district, and the furnishing of specified types of services will be heard. Any person interested may file a protest in writing with the City Clerk. If fifty percent or more of the registered voters, or six registered voters, whichever is more, residing in the territory proposed to be included in the community facilities district, or the owners of one-half or more of the area of land in the 4931-4455-2228 C-2
territory proposed to be included in the community facilities district and not exempt from the special tax file written protests against the establishment of the community facilities district and the protests are not withdrawn to reduce the value of the protests to less than a majority, the City Council of the City shall take no further action to establish the community facilities district or authorize the special taxes for a period of one year from the date of the decision of the City Council, and if the majority protests of the registered voters or the landowners are only against the repayment of the 2007 Bonds or the furnishing of a type or types of services within the community facilities district, or against levying a specified special tax, repayment of the 2007 Bonds or those types of services, or the specified special tax, will be eliminated from the proceedings to form the community facilities district.
Any person interested in these matters is invited to present testimony either for or against the above item. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Council of the City at or prior to the public hearing.
The City Council will hold the public meeting and hearing in person, with a phone and virtual option for public participation based on availability. See the agenda for the October 28, 2025 City Council meeting on the City’s website at https://www.cityofchowchilla.org for virtual participation instructions. The City makes no representation or warranty of any kind regarding the adequacy, reliability or availability of virtual participation options. Participation by members of the public through virtual means is at prospective participants own risk. /s/ Joann McClendon
City Clerk,
City of Chowchilla
REPORT TO THE CITY COUNCIL
Item 6.2
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: September 23, 2025
AGENDA SECTION: New Business
SUBJECT: Approval of a Resolution Awarding Contract for the Avenue 24 ½ Reconstruction Project to Terra West Construction, Inc. and Authorizing the City Administrator or Designee to Execute Related Documents PREPARED BY: Jason Rogers, Director of Public Works
ATTACHMENTS: Resolution
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:
Staff recommends that the City Council Adopt a resolution awarding contract for the Ave 24 1/2 Reconstruction Project in the amount of $524,043.00 to Terra West Construction, Inc. and authorizing the City Administrator or designee to execute related documents on behalf of the City.
BACKGROUND:
The Ave 24 ½ Reconstruction Project, will consist of a rehabilitation overlay of Ave 24 ½ starting at Road 15 1/2 and continuing east for approximately 0.5 miles to Road 16. The City began advertising the Project for bids on August 1, 2025. The Notice Inviting Bids was published in the Madera Tribune, posted on OpenGov, and submitted to the appropriate construction trade journals and builder’s exchanges.
REASON FOR RECOMMENDATION:
Bids were received from fourteen (14) contractors on September 4, 2025, as follows:
Contractor Bid Amount
Terra West Construction, Inc. $524,043.00
Cal Valley Construction, Inc. $549,675.00
AJ EXCAVATION INC $553,670.00
Don Berry Construction, Inc. $569,597.00
Avison Construction Inc. $581,650.00
Hensley's Paving & General Engineering, Inc. $592,467.42 Granite Construction Company $629,884.00
Asphalt Design by Juan Gomez $676,300.00
Dave Christian Construction, Inc. $679,747.00
Granite Rock Company $698,995.00
Tosted Asphalt, Inc $794,799.80
Rolfe Construction Inc $804,913.00
McGuire and Hester $820,835.00
Zara Construction, Inc. $928,240.00
The Engineer’s Estimate was $1,100,000. Staff has reviewed the bid submitted by Terra West Construction, Inc., along with information regarding their previous work experience. Based on review, Staff has determined the bid submitted is responsive and Terra West Construction, Inc.to be a responsible contractor. Staff recommends City Council award the contract for the Project, to Terra West Construction, Inc.
FISCAL IMPACT:
The construction costs and available funding for the Project were included in the Fiscal Year 2025/26 Budget and Capital Improvement Plan (CIP) and is funded by Measure T, Gas Tax, Regional Surface Transportation Program (RSTP), and Road Maintenance and Rehabilitation Account gas tax (RMRA) funds.
Amount
Construction Costs
Ave 24 ½ Reconstruction $524,043.00
Contingency 52,400.00
Engineering/Plans/Specs/Bid Support 67,800.00
Construction Management 50,000.00
Total Construction $694,243.00
Construction Funding
Measure T $ 76,128.00
Gas Tax 359,000.00
RMRA 359,000.00
RSTP 224,872.00
Total Construction Funding $960,000.00
Surplus / (Deficit) $265,757.00
ALTERNATIVES:
1. City Council may reject all bids.
ACTIONS FOLLOWING APPROVAL:
1. Execution of Contract
2. Pre-Construction Meeting
3. Issue Notice to Proceed.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA AWARDING CONTRACT FOR THE AVENUE 24 ½ RECONSTRUCTION PROJECT TO TERRA WEST CONSTRUCTION, INC. AND AUTHORIZING THE CITY ADMINISTRATOR OR DESIGNEE TO
EXECUTE RELATED DOCUMENTS
WHEREAS, the Invitation to Bid for the Avenue 24 ½ Reconstruction Project (the “Project”) was published in the Madera Tribune and was sent electronically to all construction trade journals specified for the City by the California Uniform Construction Cost Accounting Commission in accordance with the City’s Formal Contract Procedures and California Public Contract Code Section 22037; and WHEREAS, the following bids for the Project were received and publicly opened and read aloud at the Chowchilla City Hall on September 4, 2025, at 3:00 p.m.:
Contractor Bid Amount
Terra West Construction, Inc. $524,043.00
Cal Valley Construction, Inc. $549,675.00
AJ EXCAVATION INC $553,670.00
Don Berry Construction, Inc. $569,597.00
Avison Construction Inc. $581,650.00
Hensley's Paving & General Engineering, Inc. $592,467.42 Granite Construction Company $629,884.00
Asphalt Design by Juan Gomez $676,300.00
Dave Christian Construction, Inc. $679,747.00
Granite Rock Company $698,995.00
Tosted Asphalt, Inc $794,799.80
Rolfe Construction Inc $804,913.00
McGuire and Hester $820,835.00
Zara Construction, Inc. $928,240.00
WHEREAS, the City Engineer’s Opinion of Probable Construction Costs for the project was $1,100,000.00; and
WHEREAS, the City Engineer has determined the bid submitted by Terra West Construction, Inc. to be responsive and Terra West Construction, Inc. to be a responsible contractor; and WHEREAS, the City Engineer recommends the Project be awarded to Terra West Construction, Inc.; and
WHEREAS, funding is currently available in the FY 2025-2026 budget.
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 low bid submitted by Terra West Construction, Inc. is responsive.
3. The construction contract for the Project is awarded to Terra West Construction, Inc. in the amount of $524,043.00 with a contingency of $52,400.00.
4. The City Administrator is authorized to execute the contract on behalf of the City of Chowchilla.
5. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 23rd day of September, 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 6.3
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: September 23, 2025
AGENDA SECTION: New Business
SUBJECT: Consideration of Amendment to Athletic Field Use Policy PREPARED BY: Stacy Wisener, Director of Recreation and Community Engagement ATTACHMENTS: Resolution – Athletic Field Policy
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:
The recommendation is for the City Council to adopt the resolution approving the amendments to the Athletic Field Use Policy as presented, which clarifies requirements for reservations and allows for pickup and practice play when fields are not reserved.
BACKGROUND:
The City of Chowchilla adopted the Athletic Field Use Policy on May 28, 2024 (Resolution #22-24) to establish rules and procedures for reserving athletic fields.
Since implementation, staff identified challenges with access and enforcement:
• The original policy required reservations for practices, which created unnecessary barriers for local teams wanting informal field use.
• Residents and teams expressed a desire to practice or engage in casual play without having to complete the reservation process.
• The policy did not clearly address pickup play or the conditions under which lights may be used.
In reviewing best practices, including policies from other cities, staff drafted amendments to provide flexibility for casual users while ensuring organized league activities remain regulated.
REASON FOR RECOMMENDATION:
The recommended amendments provide clarity, fairness, and accessibility for community use of City athletic fields. The revised policy:
• Removes unnecessary barriers by allowing practices and pickup play without requiring reservations, encouraging more youth and community participation. • Aligns with regional best practices, particularly the City of Madera, which provides open field access when fields are not reserved.
• Protects organized users by ensuring that league games, scrimmages, tournaments, and the use of field lights still require reservations, insurance, and fees. • Improves enforcement by clearly defining pickup play and establishing when reservations are mandatory, reducing ambiguity for both staff and users. • Balances flexibility with oversight by allowing open community use while preserving the City’s ability to regulate organized activities and recover costs through the Master Fee Schedule.
Adoption of the amended policy ensures consistent enforcement, increased community access, and alignment with the Council’s goals for fairness and efficient use of City facilities.
FISCAL IMPACT:
There is no direct fiscal impact from adopting the amended policy. Fees for field reservations and lights remain in effect under the City’s Master Fee Schedule.
ALTERNATIVES:
The alternative is not to approve the policy and maintain the previously adopted Resolution #22-24.
ACTIONS FOLLOWING APPROVAL:
Implement the amended policy beginning October 1, 2025.
COUNCIL RESOLUTION # XX-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
AMENDING THE ATHLETIC FIELD USE POLICY AND ESTABLISHING AN EFFECTIVE DATE
WHEREAS, the City of Chowchilla adopted the Athletic Field Use Policy on May 28, 2024, by Resolution No. 22-24, to establish guidelines for the reservation and use of City athletic fields; and
WHEREAS, staff have reviewed the policy and identified areas for improvement to provide clarity, fairness, and increased accessibility to residents and community sports groups; and WHEREAS, the amended policy defines and allows pickup play and practices without requiring reservations when fields are not reserved, while maintaining reservation requirements for league games, scrimmages, tournaments, special events, and anytime lights are needed; and WHEREAS, the amended policy also clarifies insurance requirements, updates section numbering for consistency, and removes duplicate or conflicting provisions; and WHEREAS, the City Council desires to adopt the amended Athletic Field Use Policy to align with best practices, balance flexibility with oversight, and ensure the fair and efficient use of City athletic fields;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
1. The City Council hereby adopts the amended Athletic Field Use Policy, attached hereto as Exhibit A and incorporated herein by reference.
2. The amended Athletic Field Use Policy shall become effective on October 1, 2025.
3. The City Administrator, or designee, is directed to take all necessary steps to implement the amended policy, including updating public materials, notifying sports organizations, and training staff on the revised procedures.
PASSED AND ADOPTED by the City Council of the City of Chowchilla, this 23rd day of September 2025, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
___________________________________
Kelly Smith, Mayor
ATTEST:
___________________________________
Joann McClendon, CMC, City Clerk
CITY
POLICY
TITLE: Athletic Field Use Policy PAGE: 1 of 3
EFFECTIVE DATE: May 28, 2024
AMENDED DATE: September 23, 2025
COUNCIL RESOLUTION: # 22-24
1. PURPOSE
The purpose of this policy is to define the requirements to schedule the use of City of Chowchilla (“City”) recreation fields. This policy applies to all organizations, other than the City Recreation Department (“Recreation Department”), scheduling the use of City recreation fields.
2. GENERAL POLICY
1. The Recreation Department will coordinate and allocate the use of its athletic fields for organizations to hold league play, games, tournaments, and other scheduled sport-related events.
2. The Recreation Department will monitor proper use of reservations and permits.
3. First priority will be given to Recreation Department Sports Programs and City Special Events.
4. Athletic fields will then be allocated based on priority as listed below. This does not guarantee that every organization will receive the fields they request.
5. The City reserves the right to increase or decrease the number of fields assigned to an organization based upon usage, the need to accommodate local organizations, and the unavailability of fields due to maintenance.
6. Should any situation arise that is not specified in this policy, the Recreation Department shall determine field allocations for the season, at the Recreation Department’s sole discretion.
Consideration may be given to the organization's history of use or past practice.
3. ALLOCATION PRIORITY
1. City Recreation Programs.
2. Non-Profit Sports Organizations that are entered into a Facility Use Agreement with the City.
3. Adult Non-Profit Sports Organizations.
4. Local Travel Teams when fields are open and not in contracted use. A local Travel Team is defined as the Chowchilla youth sports team, with a roster made up of primarily of Chowchilla residents who are a part of a private club or sports program, not a recreational league or affiliated with a school.
4. OPEN PLAY AND PICKUP USE
1. City athletic fields are open for casual use, team practices, and pickup play when fields are not reserved. Individuals, small groups, or teams may practice or play informally on open fields at no cost, provided they do not interfere with a permitted reservation.
Athletic Field Use Policy Page 2 of 4
2. When a reservation is in place, the permitted group has exclusive use of the field. Unauthorized groups must vacate the field if their play conflicts with a scheduled reservation.
3. Teams may also choose to reserve fields for practices through the Recreation Department if they want to secure their play time and ensure exclusive use.
4. Lights are only available with a reservation. Pickup play without a reservation may not request or use field lights.
5. FACILITY USE AGREEMENTS
Organizations and the City may enter into a Field Use Agreement, at the City’s sole discretion, which includes the following terms:
1. Either the parent organization or the organization must be recognized as being exempt from federal income tax in accordance with the Internal Revenue Code, be able to provide an appropriate determination letter from the Internal Revenue Service (“IRS”) recognizing the organization's exemption, and maintain an active tax-exempt status for the duration of the Field Use Agreement.
IRS Website Reference Tax Information for Charities & Other Non-Profits, https://www.irs.gov/charities-non-profits.
2. The organization must provide a benefit to the City, as determined by the Recreation Department.
3. Field Use Agreements give priority to the organization when scheduling athletic field use. Rental of the fields is only available when a contracted sport is not in season; they have precedence.
4. Organizations with a Field Use Agreement do not pay for field use; however, Field Use Agreements require the organization to provide field amenities and/or improvements, as determined by the Recreation Department.
5. Organizations with a Field Use Agreement are responsible for paying light fees, as established by the City of Chowchilla Master Fee Schedule.
6. The organization must operate under a Board, a majority of whose officers are residents of the City.
7. Field Use Agreements shall be primarily for the benefit of City residents. The majority of the sports roster must be City residents. Rosters may be requested by the City and, at the City’s sole discretion, to determine if the organization is made up of local participants, and the determination will be made at the sole discretion of the Recreation Department.
8. The organization must provide proof of insurance coverage with the required limits and name the City as additional insured. Further information on insurance requirements can be found below in section 6.
9. The City and organization may lock the fields to prevent usage during the organization’s season.
After the season, the fields will remain unlocked for public use.
10. The City must approve all tournaments. Guidelines for tournaments will be provided to the organization by the Recreation Department.
11. All reservations must be made with the Recreation Department by the organization’s responsible representative, i.e., Head Coach, Team Manager, or President of Organization.
12. All rules and regulations found in the Field Use Agreement must be adhered to.
Athletic Field Use Policy Page 3 of 4
6. RESERVATION REQUIREMENTS
Outside Field Use Agreements, the City may rent to other entities that wish to use the fields. A reservation through the Recreation Department is required for:
- Any organized league game.
- Any scrimmage or “friendly” between two or more teams. - Any tournament, special event, or other use involving multiple teams or outside spectators. - Anytime lights are needed.
Organizations wishing to use City athletic fields must have a reservation approved by the Recreation Department and meet the following requirements:
1. Complete and submit the Sports Field Reservation Form (“Reservation Form”) to the Recreation Department for review and determination. Reservations must be submitted no less than three (3) City Hall business days before the event date.
2. The Reservation Form must be signed and agreed to by the organization’s responsible representative, i.e., Head Coach, Team Manager, or President of the Organization.
3. Submit field use and light fees as stated in the City Master Fee Schedule. All payments must be made before the reservation.
4. The majority of the roster must be Chowchilla Residents. Rosters may be requested to determine if the organization is made up of local participants. Determination of requirements being met is at the discretion of the Recreation Department.
5. The organization must provide proof of insurance coverage with the required limits and name the City of Chowchilla as an additional insured. Further information on Insurance requirements can be found below in section 6.
6. No Tournaments are allowed to be held unless approved by the City of Chowchilla.
Guidelines for tournaments will be provided to the organization by the Recreation Department.
7. Groups who have reserved field use are expected to follow the schedule submitted on the reservation form. At no time is an organization authorized to sublet or reissue the use of the fields to other groups.
8. All rules and regulations found in the Reservation Form must be adhered to.
7. INSURANCE REQUIREMENTS
1. The organization shall carry a liability insurance policy, or its equivalent, with a reputable insurance company. The organization shall not use the facilities for any purpose before providing the city with evidence of insurance.
2. The liability insurance policy must have the following minimum limits (commonly provided options):
• Each Occurrence – $2,000,000
• Personal & Advertising Injury – $2,000,000
• General Aggregate – $4,000,000
• Products/Completed Operations – $2,000,000
• Damage to Rented Premises (each occurrence) – $300,000 • Medical Expenses (any one person) – $10,000
Athletic Field Use Policy Page 4 of 4
• The liability insurance policy shall cover the full term noted on the Reservation Form or Field Use Agreement. The liability insurance policy shall provide that coverage will not be canceled, materially changed, or permitted to expire without a sixty (60) day prior written notice to the City at 130 S. 2nd Street, Chowchilla, CA 93610.
3. Additional Insurance will be required for tournaments, as liability insurance does not usually cover tournaments.
8. ENFORCEMENT AND CORRECTIVE ACTIONS
Violations of the Athletic Field Use Policy, Reservation Requirements, or Facility Use Agreements will be addressed through a progressive enforcement process at the discretion of the Recreation Department and/or City Administration. This process may include warnings, suspension or cancellation of field use privileges, denial of future reservations, or other corrective actions appropriate to the severity and frequency of the violation.
REPORT TO THE CITY COUNCIL
Item 6.4
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TO RETURN TO
THE AGENDA
Meeting of: September 23, 2025
AGENDA SECTION: New Business
SUBJECT: Request for Council Direction Regarding Beautification of Vacant Land Donated to the City at 319 Robertson Blvd.
PREPARED BY: Jason Rogers, Director of Public Works
ATTACHMENTS: Pocket Park Conceptual Designs
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:
Staff recommends that the City Council review the conceptual designs for a small pocket park at 319 Robertson Blvd and provide direction on a preferred concept or additions/deletions Council would like to see.
BACKGROUND:
Recently, the City of Chowchilla was donated vacant property located at 319 Robertson Blvd. This is a smaller lot, approximately 25 ft wide and 150 ft long.
REASON FOR RECOMMENDATION:
Initially, the City explored several options for the vacant lot, including additional parking for the downtown area, leasing/selling the property, and beautification. On August 12, 2025, City staff met with the Economic Development Ad Hoc to receive their recommendation as to how to proceed on this vacant lot. The recommendation was to have some concept designs for a pocket park for the location for downtown beautification. The reasons are as follows:
1. Due to the narrowness of lot, a parking lot would only result in four to five parking spaces.
Additionally, with the Caltrans CAPM Project, we would have to remove two on-street parking locations for a new driveway approach.
2. Lease/Sale of the lot. Marketing a vacant lot with no improvements could result in the lot remaining vacant for an unknown time.
As a result, QK’s landscape architecture team came up with a couple of concepts based upon the Ad Hoc’s initial comments. Once a final design is selected, an estimate of probable construction costs can be determined and brought back to Council for final approval to proceed with the project.
FISCAL IMPACT:
Currently, the costs for the proposed pocket park are unknown. If a design is selected, staff will use that design concept to develop estimated costs for the project.
ALTERNATIVES:
1. Not to select a design.
2. Make modifications to the designs presented.
3. Direct staff to pursue other avenues related to the vacant property.
ACTIONS FOLLOWING APPROVAL:
1. Staff will implement Council’s direction.
2. Bring back fully developed conceptual design and cost estimate.
Chowchilla Linear Park Concepts
Concept 1 features a clear meandering path with two side entrances, meant for employees and patrons of the surrounding businesses. Along with the boulders meant for informal seating, two lean rails are also included for resting and cafe string lights span the two buildings. A curb borders the linear park to protect the space from cars.
SHADE TREES
CURB
HARDSCAPE
PLANTINGAREA
WALL MURAL
ART
W Robertson Blvd.
CONCEPT 1
SHADE TREES
SPLIT RAIL FENCE
ART / SCULPTURE
HARDSCAPE
PLANTINGAREA
WALL MURAL
ART
Chowchilla Linear Park Concepts
W Robertson Blvd.
CONCEPT 2
Concept 2 features a clear meandering path with two side entrances, meant for the employees and patrons of the surrounding businesses. Along with the boulders meant for informal seating, two lean rails are also included for resting and cafe string lights span the two buildings. Additionally, this place is themed around the Chowchilla Robertson cattle drive. It features two sculptures highlighting the cattle drive and a split rail fence protects the linear park.
SHADE TREES
HARDSCAPE
PLANTINGAREA
CURB
WALL MURAL
ART
Concept 3 has wide entrances creating an open layout. A central planter gives the space a focal point while providing shade and seating opportunities. Surrounding the central planter are four lean rails. A curb surrounds the site, and fabric shade spans the two buildings creating a welcoming feel.Chowchilla Linear Park Concepts W Robertson Blvd.
CONCEPT 3
REPORT TO THE CITY COUNCIL
Item 6.5
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TO RETURN TO
THE AGENDA
Meeting of: September 23, 2025
AGENDA SECTION: New Business
SUBJECT: Discussion and Direction Regarding Entering into a Joint Powers Authority (JPA) with Pioneer Community Energy (Pioneer) Regarding Providing Electric Utility Services in the City of Chowchilla
PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: N/A
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☐ RECOMMENDATION:
Staff recommends that the City Council authorize the City Administrator to commission an Impact Assessment Study to determine the financial feasibility and timing of Madera County, Madera, and/or Chowchilla joining Pioneer Community Energy’s Joint Powers Agreement.
BACKGROUND:
Pioneer Community Energy (Pioneer) is a Joint Powers Authority formed between the Counties of Placer and El Dorado, the Town of Loomis, and the Cities of Auburn, Colfax, Grass Valley, Lincoln, Nevada City, Placerville, and Rocklin. In October 2027, Pioneer will launch service in the counites of Butte, Glenn, Nevada, Sutter, Tuolumne; the cities of Chico, Live Oak, Orland, Oroville, Sonora, Willows, Yuba City, and the Town of Paradise.
Pioneer is a Community Choice Aggregation Program (CCA) authorized under Assembly Bill 117 (2002).
The CCA provides local control over the electricity supply with a primary goal of providing stable and competitive electricity rates to the residents and businesses within its member jurisdictions. Pioneer also prioritizes community partnership and economic development through reinvestment.
Pioneer purchases the electricity (noted as “generation” on customer bills and represents roughly 40% of customer bills), and PG&E delivers the power through its poles and wires (notes and “transmission and delivery” on customer bills). PG&E continues to own, operate, and maintain its distribution infrastructure.
PG&E also continues to provide meter reading and billing services for Pioneer’s customers.
REASON FOR RECOMMENDATION:
On September 17, 2025, city staff met with the Pioneer team to discuss the benefits of joining a CCA, how Pioneer is a strong fit for this region, and likely next steps should the Pioneer Board approve additional expansion.
On August 13, 2025, Pioneer gave a presentation to the Madera County Economic Development Commission. This presentation provided specific information about Pioneer’s commitment to ratepayers savings, products and pricing compared to PG&E, and governance. At this meeting, Pioneer staff also outlined in general terms the process for joining its JPA, noting that the Pioneer Governing Board must also approve any expansion efforts.
To begin the process, the City (and the City and County of Madera if they approve to do the study) and Pioneer jointly commission and share the cost of an Impact Assessment Study that determines the financial feasibility of joining a JPA. The study will define projected rates and projected power supply costs at the time of proposed service launch into Chowchilla in October 2027.
Conducting the study does not bind the City to joining Pioneer. Once the City has the results of the Impact Assessment Study, a determination will be made about joining Pioneer and the optimal timing for service launch.
All findings would be shared with the City in October. Assuming the findings are favorable and if the Board approves, the City would begin the administrative process of joining Pioneer, which includes approving an ordinance. Pioneer’s Governing Board will work simultaneously to begin the process of amending its JPA and Implementation Plan to include the City. To be included in the October 2027 service launch, the Implementation Plan must be submitted to the California Public Utilities Commission by December 31, 2025.
Benefits of joining Pioneer include:
• Stable and Competitive Rates – Since launching in 2018, Pioneer has saved its customers $108 million, with an additional $37 million in anticipated savings in 2025. • Local Control/Local Voice – As a member of the JPA, the city/county will have a seat on the Pioneer board of directors. This person is appointed by the council/board from the elected officials. All meetings are open to the public and every person’s voice will be heard. • Legislative & Regulatory Influence & Advocacy – Pioneer is an advocate for the member agency residents and businesses by working with the state legislature, the California Public Utilities Commission and PG&E on behalf of customer interests and concerns. Pioneer is also a strong advocate for biomass energy.
• Community Reinvestment – Once the county has the results of the Impact Assessment Study, a determination will be made about joining Pioneer and the optimal timing for service launch. • Programs – With input from our Community Advisory committee, comprised of individuals from throughout our service area, Pioneer is developing and launching programs that meet the unique needs of the communities we serve. These programs include rebate and incentive programs, access to solar + battery program, a local feed-in tariff, a BioMAT program, and an agricultural flexible irrigation pilot program.
FISCAL IMPACT:
The cost of the Impact Assessment Study will not exceed $30,000. Pioneer pays half of the cost, with the remaining $15,000 split among the County and cities therein.
ALTERNATIVES:
Do not approve doing the Impact Analysis Study
ACTIONS FOLLOWING APPROVAL:
City Administrator will sign the necessary documents to allow Pioneer to begin the Impact Analysis Study and have Finance issue a check.