AGENDA
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, May 12, 2026
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 four days prior to a regular meeting and one 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: Ray Barragan
Council Members: Waseem Ahmed, John Chavez, Jeff Troost 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
• National Police Week Proclamation
PUBLIC ADDRESS
This time is reserved for members of the audience to address the City Council on items of interest that are not on the agenda and that are within the subject matter jurisdiction of the Council.
It is recommended that speakers limit their comments to no more than 3 minutes each, and it is requested that no comments be made during this period on items on the Agenda. Speakers are not allowed to cede their public comment time.
Members of the public who are joining the meeting via Zoom and would like to address the Council on items on the agenda should follow the policy on page 3 of this agenda packet.
City Council Meeting AGENDA May 12, 2026
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 April 28, 2026 Regular City Council Meeting Minutes (McClendon)
3.2 Consideration and Acceptance of the April 2026 Check Register Report (McClendon) PUBLIC HEARINGS – Section 4
DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6
6.1 Consideration and Adoption of a City Council Resolution Declaring Intent to Reimburse Expenditures From Proceeds of Tax-Exempt Obligations (Pruett)
6.2 Consideration and Adoption of a City Council Resolution Approving a Debt Management Policy (Pruett)
6.3 Consideration and Adoption of a City Council Resolution Awarding Contract for the Ventura Avenue Pavement Resurfacing Project to Platinum General Engineering and Authorizing the City Administrator or Designee to Execute Related Documents and Amending the Fiscal Year 2025/26 Budget (Ensminger)
6.4 Consideration and Adoption of a City Council Resolution Accepting General Plan Annual Progress Report and Annual Housing Element Progress Report for the 2025 Year (Munoz)
ANNOUNCEMENTS – Section 7
MAY 20 PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5:00PM MAY 25 MEMORIAL DAY, CITY OFFICES CLOSED
MAY 26 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
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 8th day of May, 2026 at or before 4:00 pm.
May 12, 2026 City Council Meeting | 4:00pm Open Session
ZOOM LOGIN INSTRUCTIONS
Use the following URL to start Zoom:
https://us06web.zoom.us/j/83520620965?pwd=8HqV9AflrgC8bqPS98HjsdE5NT9ivl.1 Passcode: 665 235
To participate by phone:
Dial 1-669-444-9171
Webinar ID: 835 2062 0965
Passcode: 665 235
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, April 28, 2026
Open Session: 4:00 p.m.
CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Ray Barragan
Council Members: Waseem Ahmed (absent), John Chavez, Jeff Troost (absent) City staff and contract employees present: City Administrator Rod Pruett, City Attorney Michael Prentice, Sargeant Joshua Cobb, Fire Chief Fred Gaumnitz, Public Works Deputy Director Joe Roman, Community & Economic Development Director Denise Munoz, Finance Director Daniel Seeto, Director of Recreation & Community Engagement Stacy Wisener, IT System Administrator Carlos Berrocal, City Clerk Joann McClendon CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions:
City Clerk McClendon requested to omit Item 3.5.
OPEN SESSION – 4:03 PM
PLEDGE OF ALLEGIANCE
INVOCATION: Pastor Pruitt
PRESENTATIONS/WORKSHOP - Section 1
• Proclamation: National Public Works Week
PUBLIC ADDRESS
No one spoke.
COUNCIL AND STAFF VERBAL REPORTS – Section 2
2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
Council Member Chavez reported that he attended the League of California Cities Legislative Action Days in Sacramento alongside City Administrator Rod Pruett. He also attended Craig Judd's art recognition show.
Council Member Barragan reported attending a lunch with the fair director, who provided an overview of new attractions and programming planned for the upcoming Chowchilla Fair.
Mayor Smith noted that he and Mayor Pro Tem Ray attended to city business during the absence of Council Member Chavez and the City Administrator. Mayor Smith also attended the Chowchilla Athletic Foundation (CAF) golf tournament the prior Friday and reported that it was well attended and raised a considerable amount of money for the Chowchilla Athletic Foundation (CAF). Mayor Smith added that he and Mayor Pro Tem Ray recently visited the Police Department to meet the City Council Meeting MINUTES April 28, 2026
new Belgian Malinois canine and expressed appreciation for the funding that made the acquisition possible.
2.2 STAFF VERBAL REPORTS
Sergeant Cobb of the Chowchilla Police Department reported that since the last council meeting, the department responded to 1,195 calls for service and conducted 484 proactive stops, resulting in 20 misdemeanor arrests, 6 felony arrests, and 7 citations issued. Code Enforcement responded to 32 calls for service and conducted numerous homeless contacts throughout the city and sloughs. The department is also actively planning for fair week and the upcoming parade.
Fire Chief Fred reported that weed abatement is ongoing and that the city is in markedly better condition this year compared to the prior year. Staff are preparing for the fair. He highlighted a structure fire from the prior Friday as a notable operational success: a call was dispatched at 9:48 AM, with the first engine responding to within 15 seconds and a second engine within 30 seconds. Units were on scene within 90 seconds. The fire, determined to likely be an electrical attic fire that may have smoldered throughout the day, was controlled within 25 minutes and fully extinguished within 45 minutes. The Chief noted the incident provided valuable learning opportunities for staff.
Public Works Director Joe Roman reported that staff attended the Madera County Transportation Commission (MCTC) Policy Board meeting and has been meeting with Enterprise to evaluate fleet contracts and plan future vehicle orders in coordination with the Police Department and the City Administrator. Staff also met with the Parks and Recreation Director to discuss Capital Improvement Program (CIP) projects and conducted a final walk-through for the Orchard View subdivision lighting and landscape district. Staff are actively preparing for the parade and fair, including planning for a new traffic control configuration at the fairgrounds. Discussion ensued regarding recommending a pedestrian route to the fair via Third Street due to anticipated traffic congestion on Fifth Street following the parade. Staff agreed to coordinate with PD and Fire and follow up with the fairgrounds on an official pedestrian recommendation. Mayor Smith noted that VIP parking is available for $22 and general parking for $10, with admission at $10 — free with a barbecue ticket — and acknowledged some public confusion about online ticketing fees displayed on the fair's website.
Community Development Director Denise Munoz reported attending the April 15 Planning Commission meeting, at which the Commission recommended City Council adopt proposed General Plan amendments, zoning ordinance amendments, and an annexation pre-zoning project. She also met with a local business owner to walk downtown area and discuss potential incentives to promote new business and address vacancies. She announced that a new business, Midnight Dough, is projected to open on May 26 at the corner of Kings Avenue and Third Street.
Finance Director Daniel Sito reported that staff are continuing to work on the upcoming fiscal year budget.
Director of Recreation & Community Engagement Wisener reported that staff are actively preparing for summer programs, including Music and Movies in the Park. Lifeguard interviews are scheduled for the following week in advance of the open swim season. The city held its first Community Paint Night the prior Friday to positive reception. Staff continued efforts to build out the project tracking software system, maintained system licensing to prevent service interruptions, supported Police Department operations during system updates, replaced a failed exterior camera, continued processing Public Records Act requests, completed an email phishing prevention effort, and are preparing for deployment of a new firewall system.
City Administrator Rod Pruett reported attending the League of California Cities Legislative Action Days with Council Member Chavez. He provided an update on the Rancho Calera Contract for City Council Meeting MINUTES April 28, 2026
Difference (CFD) bond issuance process, noting that the city is working with the Rancho Calera development team on two CFDs. The plan is to first complete the bond issuance for CFD 2006-1 refunding (transitioning to CFD 2025-2), with the CFD 2025-1 bond issuance for Rancho Calera to follow, potentially by December. He noted that Rancho Calera has three interested builders/buyers currently under discussion for several blocks. Administrator Pruett also reported on the Fair Meat Consolidation Project, noting that an out-of-area service agreement has been substantially resolved, right-of-entry documents have been completed, and the next step is execution of the service agreement to support construction funding. The project is awaiting railroad approval of encroachment permits, after which the first phase — including pipe and lift stations — will be bid out, followed by a separate Request for Proposal (RFP) for improvements to the city's treatment facility.
CONSENT CALENDAR – Section 3
3.1 Approval of the April 14, 2026 Regular City Council Meeting Minutes (McClendon)
3.2 Consideration and Acceptance of the March 2026 Financial Report (McClendon)
3.3 Second Reading and Adoption of an Ordinance Amending Section 4.04.360 of the Chowchilla Municipal Code Related to Bid Protest Procedures (Pruett)
3.4 Consideration and Adoption of a City Council Resolution Approving Amendments to the City of Chowchilla Procurement Policy Related to Bid Protest Procedures (Pruett)
3.5 Consideration and Adoption of a City Council Resolution Designating Eligible Projects for Fiscal Year 2026-27 Funded by SB 1: The Road Repair and Accountability Act of 2017 (Roman)
3.6 Consideration and Adoption of a City Council Resolution Renewing Ordinance #509- 22, Chowchilla Police Department Policy No. 705, and the 2025 Annual Military Equipment Report (Palmer)
3.7 Informational Item – Quarterly Project Management Update (McClendon)
3.8 Consideration and Acceptance of the Quarterly Fee Waiver Report (Seeto)
3.9 Consideration and Acceptance of the Quarterly Contracts Executed Report (Pruett)
3.10 Consideration and Acceptance of the Quarterly Financial Investment Report (Seeto) Motion by Mayor Pro Tem Barragan Seconded by Council Member Chavez to Approve the Consent Calendar as Amended. Motion passed by roll call vote with Council Members Ahmed and Troost absent.
PUBLIC HEARINGS – Section 4
4.1 Consideration and Adoption of a City Council Resolution Approving the Measure T Annual Expenditure Plan (AEP) for Fiscal Year 2026/27 and Authorizing the Public Works Director or Designee to Submit the Plan to the Madera County Transportation Authority (MCTA) for Adoption (Roman)
Mayor Smith opened the public hearing at 4:28 p.m. No one came forward for or against the item.
Mayor Smith closed the public hearing at 4:28 p.m.
Motion by Mayor Pro Tem Barragan Seconded by Council Member Chavez to Approve City Council Resolution #17-26, Resolution Approving the Measure T Annual Expenditure Plan (AEP) City Council Meeting MINUTES April 28, 2026
for Fiscal Year 2026/27 and Authorizing the Public Works Director or Designee to Submit the Plan to the Madera County Transportation Authority (MCTA) for Adoption. Motion passed by roll call vote with Council Members Ahmed and Troost absent.
DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6
6.1 Presentation of the City’s Fiscal Year 2024-2025 Financial Statement Audit (Seeto)
6.2 Consideration and Adoption of a City Council Resolution Awarding Contract for the Road 15 ½ Rehabilitation Project to Hensley’s Paving and General Engineering and Authorizing the City Administrator or Designee to Execute Related Documents (Roman)
Motion by Mayor Pro Tem Barragan Seconded by Council Member Chavez to Approve City Council Resolution #18-26, Awarding Contract for the Road 15 ½ Rehabilitation Project to Hensley’s Paving and General Engineering and Authorizing the City Administrator or Designee to Execute Related Documents. Motion passed by roll call vote with Council Members Ahmed and Troost absent.
ANNOUNCEMENTS – Section 7
MAY 12 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
MAY 7-10 CHOWCHILLA FAIR, MADERA-CHOWCHILLA FAIRGROUNDS MAY 9 SPRING FESTIVAL PARADE
ADJOURNMENT
Mayor Smith adjourned the April 28, 2026 City Council meeting at 4:47 p.m.
ATTEST: APPROVED:
Joann McClendon, CMC, City Clerk Mayor Kelly Smith
REPORT TO THE CITY COUNCIL
Item 3.2
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: May 12, 2026
AGENDA SECTION: Consent
SUBJECT: Information Regarding Monthly Invoice Payments PREPARED BY: Daniel Seeto, Finance Director
ATTACHMENTS: Check list report
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Informational only. The invoices paid are shown in the attached listing of invoices.
BACKGROUND:
Presented this evening is a list of invoices paid in April 2026.
REASON FOR RECOMMENDATION:
Informational item only.
FISCAL IMPACT:
Each item shown on the invoice list includes a description of that item and the amount of the invoice.
ALTERNATIVES:
Not applicable.
ACTIONS FOLLOWING APPROVAL:
None.
5/4/2026 3:35:59 PM Page 1 of 6
Bank Transaction Report
Chowchilla, CA Transaction Detail
Issued Date Range: 04/01/2026 - 04/30/2026
Cleared Date Range: -
Cleared
Date Number Description Module Status Type Amount
Issued
Date
Bank Account: 200650906 - General Tricounties Bank
04/06/2026 71401 AT & T Accounts Payable Outstanding Check -96.30 04/06/2026 71402 AT & T CALNET Accounts Payable Outstanding Check -863.57 04/06/2026 71403 AutoZone Parts, Inc Accounts Payable Outstanding Check -46.56 04/06/2026 71404 Baker Supplies and Repairs Accounts Payable Outstanding Check -87.00 04/06/2026 71405 BSK Associates Accounts Payable Outstanding Check -717.05 04/06/2026 71406 California Building Standards Accounts Payable Outstanding Check -2,125.80 04/06/2026 71407 Central Valley Forensic Nursing Specialists Accounts Payable Outstanding Check -1,500.00 04/06/2026 71408 Consolidated Electrical Distributors Accounts Payable Outstanding Check -112.45 04/06/2026 71409 Cornerstone Structural Engineering Group, Inc. Accounts Payable Outstanding Check -1,398.80 04/06/2026 71410 Creative Copy Accounts Payable Outstanding Check -290.21 04/06/2026 71411 Division of State Architect Accounts Payable Outstanding Check -18.00 04/06/2026 71412 Don Berry Construction, Inc. Accounts Payable Outstanding Check -434,778.74 04/06/2026 71413 Eppler Towing & Recovery Inc Accounts Payable Outstanding Check -2,312.50 04/06/2026 71414 Farmers Hardware Accounts Payable Outstanding Check -1,912.98 04/06/2026 71415 Void Check Accounts Payable Voided Check 0.00 04/06/2026 71416 Void Check Accounts Payable Voided Check 0.00 04/06/2026 71417 Fuentes Concrete Inc Accounts Payable Outstanding Check -8,250.00 04/06/2026 71418 Grover Landscape Services Inc. Accounts Payable Outstanding Check -237.69 04/06/2026 71419 Horizon Distributors Inc. Accounts Payable Outstanding Check -133.01 04/06/2026 71420 Lozano Smith, LLP Accounts Payable Outstanding Check -25,647.67 04/06/2026 71421 Madera County Farm Bureau Accounts Payable Outstanding Check -5,973.30 04/06/2026 71422 Mid Valley Disposal Inc. Accounts Payable Outstanding Check -2,394.88 04/06/2026 71423 NBS Accounts Payable Outstanding Check -2,246.37 04/06/2026 71424 Nichols Local Government Consulting, LLC Accounts Payable Outstanding Check -2,600.00 04/06/2026 71425 Old Republic Title Company Accounts Payable Outstanding Check -347.22 04/06/2026 71426 O'Reilly Auto Parts Accounts Payable Outstanding Check -32.07 04/06/2026 71427 PACE Supply Corp Accounts Payable Outstanding Check -816.96 04/06/2026 71428 Price Paige & Company CPA's LLP Accounts Payable Outstanding Check -21,726.00 04/06/2026 71429 Principal Life Insurance Company Accounts Payable Outstanding Check -9,426.64 04/06/2026 71430 ProClean Supply Accounts Payable Outstanding Check -376.05 04/06/2026 71431 PROtech Security & Electronics Inc. Accounts Payable Outstanding Check -191.01 04/06/2026 71432 Prudential Overall Supply Accounts Payable Outstanding Check -41.99 04/06/2026 71433 Purl's Sheet Metal & Air Conditioning Inc. Accounts Payable Outstanding Check -506.32 04/06/2026 71434 Quad Knopf, Inc. Accounts Payable Outstanding Check -27,049.90 04/06/2026 71435 Void Check Accounts Payable Voided Check 0.00 04/06/2026 71436 R & H Wholesale Supply, Inc Accounts Payable Outstanding Check -547.83 Bank Transaction Report Issued Date Range: -
5/4/2026 3:35:59 PM Page 2 of 6
Cleared
Date Number Description Module Status Type Amount
Issued
Date
04/06/2026 71437 R & R Pool Service Accounts Payable Outstanding Check -140.00 04/06/2026 71438 Railworks Track Systems LLC Accounts Payable Outstanding Check -215.00 04/06/2026 71439 Rain for Rent Accounts Payable Outstanding Check -10,027.98 04/06/2026 71440 Ross Recreation Equipment Inc. Accounts Payable Outstanding Check -868.75 04/06/2026 71441 S & W Auto Parts Inc. Accounts Payable Outstanding Check -61.95 04/06/2026 71442 Superior Pool Products, LLC Accounts Payable Outstanding Check -1,770.99 04/06/2026 71443 Telstar Instruments Accounts Payable Outstanding Check -193,292.70 04/06/2026 71444 The Radar Shop Inc Accounts Payable Outstanding Check -1,376.00 04/06/2026 71445 The Water Connection Inc. Accounts Payable Outstanding Check -1,300.00 04/06/2026 71446 T-Mobile USA Inc Accounts Payable Outstanding Check -346.85 04/06/2026 71447 Townsend Public Affairs, Inc. Accounts Payable Outstanding Check -9,000.00 04/06/2026 71448 TransNations Translations, Inc. Accounts Payable Outstanding Check -180.00 04/06/2026 71449 Trinette Martinez Accounts Payable Outstanding Check -67.38 04/06/2026 71450 Tru-Trailers Inc Accounts Payable Outstanding Check -3,514.66 04/06/2026 71451 U.S. Security Supply, Inc. Accounts Payable Outstanding Check -161.17 04/06/2026 71452 US BANK (CAL-CARD) Accounts Payable Outstanding Check -4,535.31 04/06/2026 71453 US Post Office Accounts Payable Outstanding Check -3,049.59 04/06/2026 71454 Van De Pol Petroleum Accounts Payable Outstanding Check -8,562.40 04/06/2026 71455 Vulcan Materials Company Accounts Payable Outstanding Check -2,747.36 04/06/2026 71456 Western Fire Chiefs Association, Inc Accounts Payable Outstanding Check -575.00 04/07/2026 71457 CA State Disbursement Unit Accounts Payable Outstanding Check -290.76 04/07/2026 71458 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -1,204.00 04/07/2026 71459 Void Check Accounts Payable Voided Check 0.00 04/07/2026 71460 Chowchilla Employees Assn. Accounts Payable Outstanding Check -264.00 04/07/2026 71461 Chowchilla Mid-Management Accounts Payable Outstanding Check -120.00 04/07/2026 71462 Chowchilla Office Accounts Payable Outstanding Check -136.00 04/07/2026 71463 Fitness Peak Accounts Payable Outstanding Check -70.00 04/07/2026 71464 Franchise Tax Board- Tax Accounts Payable Outstanding Check -200.00 04/07/2026 71465 U.S. Bank (PARS) Accounts Payable Outstanding Check -337.14 04/16/2026 71466 County of Madera Accounts Payable Outstanding Check -20.00 04/16/2026 71467 Madera County Economic Development Commission Accounts Payable Outstanding Check -400.00 04/20/2026 71468 CA State Disbursement Unit Accounts Payable Outstanding Check -290.76 04/20/2026 71469 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -2,580.00 04/20/2026 71470 Void Check Accounts Payable Voided Check 0.00 04/20/2026 71471 Chowchilla Employees Assn. Accounts Payable Outstanding Check -264.00 04/20/2026 71472 Chowchilla Mid-Management Accounts Payable Outstanding Check -120.00 04/20/2026 71473 Chowchilla Office Accounts Payable Outstanding Check -136.00 04/20/2026 71474 Fitness Peak Accounts Payable Outstanding Check -70.00 04/20/2026 71475 Franchise Tax Board- Tax Accounts Payable Outstanding Check -200.00 04/20/2026 71476 U.S. Bank (PARS) Accounts Payable Outstanding Check -192.78 04/20/2026 71477 A1 Surveillance Systems LLC. Accounts Payable Outstanding Check -310.90 04/20/2026 71478 AFLAC Accounts Payable Outstanding Check -967.14 04/20/2026 71479 Airespring Inc Accounts Payable Outstanding Check -552.80 Bank Transaction Report Issued Date Range: -
5/4/2026 3:35:59 PM Page 3 of 6
Cleared
Date Number Description Module Status Type Amount
Issued
Date
04/20/2026 71480 American Fidelity Assurance (Flex) Accounts Payable Outstanding Check -458.32 04/20/2026 71481 AT & T CALNET Accounts Payable Outstanding Check -287.87 04/20/2026 71482 AutoZone Parts, Inc Accounts Payable Outstanding Check -19.42 04/20/2026 71483 Bernie's Electric Inc. Accounts Payable Outstanding Check -2,553.11 04/20/2026 71484 BSK Associates Accounts Payable Outstanding Check -852.18 04/20/2026 71485 California Building Standards Accounts Payable Outstanding Check -1,156.50 04/20/2026 71486 CDW Government, Inc. Accounts Payable Outstanding Check -13,969.91 04/20/2026 71487 City of Chowchilla-CH Accounts Payable Outstanding Check -125.00 04/20/2026 71488 Comcast Accounts Payable Outstanding Check -244.02 04/20/2026 71489 Comcast Accounts Payable Outstanding Check -43.51 04/20/2026 71490 Daniel Denny Accounts Payable Outstanding Check -69.00 04/20/2026 71491 DATCO Services Coporation Accounts Payable Outstanding Check -85.70 04/20/2026 71492 Fastenal Company Accounts Payable Outstanding Check -886.76 04/20/2026 71493 Horizon Distributors Inc. Accounts Payable Outstanding Check -52.33 04/20/2026 71494 Joann McClendon Accounts Payable Outstanding Check -18.70 04/20/2026 71495 John Chavez Accounts Payable Outstanding Check -362.71 04/20/2026 71496 Madera Co Auditor/Controller Accounts Payable Outstanding Check -9,247.03 04/20/2026 71497 Madera County Arts Council Accounts Payable Outstanding Check -1,244.30 04/20/2026 71498 Michael Breashears Jr. Accounts Payable Outstanding Check -262.00 04/20/2026 71499 Occupational Health Centers of California Accounts Payable Outstanding Check -514.00 04/20/2026 71500 ODP Business Solutions, LLC Accounts Payable Outstanding Check -118.68 04/20/2026 71501 PACE Supply Corp Accounts Payable Outstanding Check -206.92 04/20/2026 71502 Pacific Bay Equipment Service & Sales Accounts Payable Outstanding Check -549.98 04/20/2026 71503 Pacific Plan Review Inc Accounts Payable Outstanding Check -812.25 04/20/2026 71504 Prudential Overall Supply Accounts Payable Outstanding Check -509.60 04/20/2026 71505 Quad Knopf, Inc. Accounts Payable Outstanding Check -23,909.15 04/20/2026 71506 Rick Manuel Medeiros Accounts Payable Outstanding Check -600.00 04/20/2026 71507 Rod Pruett Accounts Payable Outstanding Check -170.00 04/20/2026 71508 S & W Auto Parts Inc. Accounts Payable Outstanding Check -10.32 04/20/2026 71509 Samsara Inc. Accounts Payable Outstanding Check -379.93 04/20/2026 71510 San Joaquin Valley Unified Air Pollution Control District Accounts Payable Outstanding Check -624.00 04/20/2026 71511 Southern Tire Mart LLC Accounts Payable Outstanding Check -388.67 04/20/2026 71512 Toshiba Financial Services Accounts Payable Outstanding Check -2,545.25 04/20/2026 71513 US Bank Accounts Payable Outstanding Check -4,050.00 04/20/2026 71514 US BANK (CAL-CARD) Accounts Payable Outstanding Check -9,333.33 04/20/2026 71515 Van De Pol Petroleum Accounts Payable Outstanding Check -11,518.29 04/20/2026 71516 Vanessa Galvez Escobar Accounts Payable Outstanding Check -134.00 04/20/2026 71517 Verizon Wireless Accounts Payable Outstanding Check -6,789.32 04/20/2026 71518 Yamabe and Horn Engineering Inc. Accounts Payable Outstanding Check -1,024.65 04/20/2026 71519 Don Berry Construction, INC. Utility Billing Outstanding Check -1,199.55 04/20/2026 71520 Daniel Royer Utility Billing Outstanding Check -202.93 04/23/2026 71521 Blue Moon C/O Yuzhen Yang Utility Billing Outstanding Check -297.46 04/23/2026 71522 Naomi Trevino R. Joseph Baggs Utility Billing Outstanding Check -52.23 Bank Transaction Report Issued Date Range: -
5/4/2026 3:35:59 PM Page 4 of 6
Cleared
Date Number Description Module Status Type Amount
Issued
Date
04/28/2026 71523 2-A's Contracting Inc Accounts Payable Outstanding Check -973.00 04/28/2026 71524 45 Rodeo, LLC Accounts Payable Outstanding Check -3,000.00 04/28/2026 71525 American Fidelity Assurance Accounts Payable Outstanding Check -1,441.36 04/28/2026 71526 Anderson Pump Co Accounts Payable Outstanding Check -219.70 04/28/2026 71527 AT & T Accounts Payable Outstanding Check -106.29 04/28/2026 71528 AT & T CALNET Accounts Payable Outstanding Check -870.82 04/28/2026 71529 AT&T Mobility, LLC Accounts Payable Outstanding Check -851.87 04/28/2026 71530 AutoZone Parts, Inc Accounts Payable Outstanding Check -20.71 04/28/2026 71531 AXANEXA LLC Accounts Payable Outstanding Check -3,000.00 04/28/2026 71532 Badger Meter Inc. Accounts Payable Outstanding Check -1,310.24 04/28/2026 71533 Blacks Irrigation Systems, Inc Accounts Payable Outstanding Check -848.25 04/28/2026 71534 BSK Associates Accounts Payable Outstanding Check -219.63 04/28/2026 71535 Burton's Fire Inc. Accounts Payable Outstanding Check -1,990.02 04/28/2026 71536 California Forensic Institute Accounts Payable Outstanding Check -800.00 04/28/2026 71537 Chowchilla District Chamber of Commerce Accounts Payable Outstanding Check -12.16 04/28/2026 71538 Comcast Accounts Payable Outstanding Check -2.28 04/28/2026 71539 Consolidated Electrical Distributors Accounts Payable Outstanding Check -648.44 04/28/2026 71540 Cook's Communication Corp Accounts Payable Outstanding Check -1,538.10 04/28/2026 71541 Cornerstone Structural Engineering Group, Inc. Accounts Payable Outstanding Check -521.00 04/28/2026 71542 Cristian Mendoza Accounts Payable Outstanding Check -73.00 04/28/2026 71543 Daniel Fraga Accounts Payable Outstanding Check -2,101.78 04/28/2026 71544 Department of Justice/Acc B/A Accounts Payable Outstanding Check -70.00 04/28/2026 71545 Enviroclean Sanitation Supply Accounts Payable Outstanding Check -147.36 04/28/2026 71546 Farmers Hardware Accounts Payable Outstanding Check -269.34 04/28/2026 71547 Fresno City College Accounts Payable Outstanding Check -132.00 04/28/2026 71548 Grover Landscape Services Inc. Accounts Payable Outstanding Check -359.14 04/28/2026 71549 Home Depot Credit Services Accounts Payable Outstanding Check -1,213.99 04/28/2026 71550 Horizon Distributors Inc. Accounts Payable Outstanding Check -903.06 04/28/2026 71551 Jonah Rogers Accounts Payable Outstanding Check -95.00 04/28/2026 71552 Kellogg Supply Accounts Payable Outstanding Check -207.90 04/28/2026 71553 L.N. Curtis & Sons Accounts Payable Outstanding Check -3,755.34 04/28/2026 71554 Madera Uniform & Accessories, LLC Accounts Payable Outstanding Check -1,124.05 04/28/2026 71555 Maziar Aminsalehi Accounts Payable Outstanding Check -16.38 04/28/2026 71556 Mid Cal Pipeline & Utilities, Inc. Accounts Payable Outstanding Check -180,689.23 04/28/2026 71557 NVB Equipment Inc. Accounts Payable Outstanding Check -1,330.23 04/28/2026 71558 ODP Business Solutions, LLC Accounts Payable Outstanding Check -88.59 04/28/2026 71559 Orchard Bar and Grill LLC Accounts Payable Outstanding Check -2,520.00 04/28/2026 71560 Pacific Gas & Electric Accounts Payable Outstanding Check -72,381.33 04/28/2026 71561 PARS Accounts Payable Outstanding Check -517.44 04/28/2026 71562 Power Business Technology LLC Accounts Payable Outstanding Check -59.72 04/28/2026 71563 ProClean Supply Accounts Payable Outstanding Check -462.20 04/28/2026 71564 Quad Knopf, Inc. Accounts Payable Outstanding Check -2,761.97 04/28/2026 71565 R & H Wholesale Supply, Inc Accounts Payable Outstanding Check -487.39 Bank Transaction Report Issued Date Range: -
5/4/2026 3:35:59 PM Page 5 of 6
Cleared
Date Number Description Module Status Type Amount
Issued
Date
04/28/2026 71566 R & R Pool Service Accounts Payable Outstanding Check -140.00 04/28/2026 71567 Rain for Rent Accounts Payable Outstanding Check -7,407.49 04/28/2026 71568 Riverview Ranches Accounts Payable Outstanding Check -1,000.00 04/28/2026 71569 Self Help Enterprises Accounts Payable Outstanding Check -928.84 04/28/2026 71570 Sergio Guillen Accounts Payable Outstanding Check -4,947.45 04/28/2026 71571 Southern Tire Mart LLC Accounts Payable Outstanding Check -1,973.57 04/28/2026 71572 State Water Resources Control Accounts Payable Outstanding Check -943.00 04/28/2026 71573 Superior Pool Products, LLC Accounts Payable Outstanding Check -1,770.99 04/28/2026 71574 The Sherwin-Williams Company Accounts Payable Outstanding Check -652.10 04/28/2026 71575 T-Mobile USA Inc Accounts Payable Outstanding Check -352.35 04/28/2026 71576 Turner's Towing Accounts Payable Outstanding Check -312.00 04/28/2026 71577 U.S. Security Supply, Inc. Accounts Payable Outstanding Check -556.82 04/28/2026 71578 US BANK (CAL-CARD) Accounts Payable Outstanding Check -2,331.31 04/28/2026 71579 USA BlueBook Accounts Payable Outstanding Check -151.80 04/28/2026 71580 Van De Pol Petroleum Accounts Payable Outstanding Check -3,458.04 04/28/2026 71581 Vision Service Plan - (CA) Accounts Payable Outstanding Check -890.68 04/28/2026 71582 West Coast Pet Memorial Service Accounts Payable Outstanding Check -601.54 04/29/2026 71583 Cassie Moreno Utility Billing Outstanding Check -158.61 04/29/2026 71584 Wing Cheong Sunny Utility Billing Outstanding Check -171.50 04/30/2026 71585 CA State Disbursement Unit Accounts Payable Outstanding Check -290.76 04/30/2026 71586 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -2,580.00 04/30/2026 71587 Void Check Accounts Payable Voided Check 0.00 04/30/2026 71588 Chowchilla Employees Assn. Accounts Payable Outstanding Check -264.00 04/30/2026 71589 Chowchilla Mid-Management Accounts Payable Outstanding Check -108.00 04/30/2026 71590 Chowchilla Office Accounts Payable Outstanding Check -136.00 04/30/2026 71591 Fitness Peak Accounts Payable Outstanding Check -70.00 04/30/2026 71592 Franchise Tax Board- Tax Accounts Payable Outstanding Check -200.00 04/30/2026 71593 U.S. Bank (PARS) Accounts Payable Outstanding Check -322.28 04/30/2026 71594 Jerry Bennett Utility Billing Outstanding Check -132.38 04/30/2026 71595 Chris and Michelle Geuder Utility Billing Outstanding Check -12.92 Bank Account 200650906 Total: (195) -1,226,207.86
Bank Account: 200695379 - Payroll-Tri Counties
04/03/2026 719 719 Payroll Outstanding Check -284.40
04/03/2026 04/02/2026 720 720 Payroll Cleared Check 0.00 04/03/2026 04/06/2026 721 721 Payroll Pending Clear Check -200.29 04/03/2026 04/13/2026 722 722 Payroll Pending Clear Check -284.40 Bank Account 200695379 Total: (4) -769.09
Report Total: (199) -1,226,976.95
Bank Transaction Report Issued Date Range: -
5/4/2026 3:35:59 PM Page 6 of 6
Summary
Bank Account Count Amount
200650906 General Tricounties Bank 195 -1,226,207.86
200695379 Payroll-Tri Counties 4 -769.09
Report Total: 199 -1,226,976.95
Cash Account Count Amount
**No Cash Account** 7 0.00
999 999-0100-0215 Cash In Bank 189 -1,226,207.86
999 999-0100-0216 Cash In Bank (Payroll) 3 -769.09
Report Total: 199 -1,226,976.95
Transaction Type Count Amount
Check 199 -1,226,976.95
Report Total: 199 -1,226,976.95
REPORT TO THE CITY COUNCIL
Item 6.1
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: Tuesday, May 12, 2026
AGENDA SECTION: New Business
SUBJECT: RESOLUTION DECLARING INTENT TO REIMBURSE EXPENDITURES
FROM PROCEEDS OF TAX-EXEMPT OBLIGATIONS
PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: Resolution
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That the City Council adopt a resolution entitled Resolution of the City Council of the City of Chowchilla Declaring Intent to Reimburse Expenditures from Proceeds of Tax Exempt Obligations.
BACKGROUND:
The City has previously formed its Community Facilities District No. 2025-1 (“CFD 2025-1” for the purpose of financing necessary public facilities and infrastructure (the “Facilities”) in connection with the “Rancho Calera” development. The City currently anticipates issuing a first series of bonds of CFD 2025-1 in 2027.
In the meantime, the City may have financed certain Facilities using other available funds.
Pursuant to federal tax law, in order for the City to reimburse itself from CFD 2025-1 bond proceeds for Facilities projects previously funded by the City, the City Council must first declare it’s official intent to do so.
REASON FOR RECOMMENDATION:
Because the City anticipates reimbursing itself for prior expenditures on Facilities projects payable from proceeds of CFD No. 2025-1 bonds, in order to comply with relevant provisions of the tax code (in particular, 26 CFR 1.150-2), the City must declare its official intent to reimburse itself.
FISCAL IMPACT:
No fiscal impact on the City.
ALTERNATIVES:
If the new policy is not adopted, the prior and existing debt policy will remain in place.
ACTIONS FOLLOWING APPROVAL:
Staff will update the City’s policy manuals to reflect the replacement policy.
COUNCIL RESOLUTION # XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA DECLARING INTENT TO REIMBURSE EXPENDITURES FROM PROCEEDS OF TAXEXEMPT OBLIGATIONS WHEREAS, on June 24, 2025, this City Council of the City of Chowchilla (the “City”) adopted Resolution # 46-25, stating its intention to establish the City of Chowchilla Community Facilities District No. 2025-1 (Rancho Calera) (“CFD No. 2025-1”) pursuant to the Mello-Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code (the “Act”), to finance the costs of acquisition and construction of certain public facilities; and WHEREAS, subsequent to the required hearing, this City Council adopted Resolution No. #59-25 establishing CFD No. 2025-1, and Resolution #60-25 calling an election within CFD No. 2025-1 on the propositions of incurring bonded indebtedness, levying the special taxes within CFD No. 2025-1, and establishing an appropriations limit for CFD No. 2025-1; and WHEREAS, on August 12, 2025, a special election was held within CFD No. 2025-1 in which over two-thirds of the qualified electors voting on the matter approved said propositions; and
WHEREAS, using the authority provided by CFD No. 2025-1, the City proposes to finance public capital improvements to the City’s utility system which will consist of municipal utility improvements including, but not limited to, domestic water wells (the “Facilities”); and WHEREAS, the City Council currently intends and reasonably expects to participate in one or more tax-exempt financings that will include, in the aggregate, an amount which is currently estimated not to exceed $30,000,000 (the “Obligations”) for the costs of the Facilities to reimburse the City for all or a portion of such expenditures paid or to be paid from legally available funds (which do not stem from a borrowing) subsequent to a period commencing 60 days prior to the date hereof and ending not later than 18 months after the later of the date such expenditures are paid or the placing in service of the Facilities (but in no event more than three years after the date of the original expenditure of such moneys); and
WHEREAS, Section 1.150-2 of the U.S. Treasury Regulations (26 CFR 1.150-2) provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such obligation unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditures; and
WHEREAS, it is in the public interest and for the public benefit that the City declare its official intent to reimburse the expenditures referenced herein.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
1. The foregoing recitals are true and correct.
2. The City intends to issue, or cause the issuance of, one or more series of the Obligations for the purpose of financing the costs of some or all of the acquisition and construction of the Facilities and incidental expenses related thereto (the “Projects”).
3. The City hereby declares that it reasonably expects (i) to pay certain costs of the Projects prior to the date of issuance of the Obligations and (ii) to use a portion of the proceeds of the Obligations for reimbursement of expenditures for the Projects that are paid before the date of issuance of the Obligations in an amount not to exceed $6,000,000.
4. This Resolution shall take effect upon its adoption. * * * * *
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of May, 2026 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 6.2
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: Tuesday, May 12, 2026
AGENDA SECTION: New Business
SUBJECT: RESOLUTION APPROVING DEBT MANAGEMENT POLICY
PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: Resolution
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
That the City Council adopt a resolution approving a Debt Management Policy.
BACKGROUND:
Government Code section 8855, subdivision (i), requires the City to adopt local debt policies prior to the issuance of debt. The City has previously adopted such local debt policies. The City is preparing to issue Community Facilities District No. 2025-2 bonds for the purpose of redeeming prior bonds of the City’s Community Facilities District No. 2006-1. In the course of such debt issuance, the City’s financial advisor has advised the City to adopt a new Debt Management Policy to replace the City’s existing local debt policies.
REASON FOR RECOMMENDATION:
Pursuant to the advice of the City’s financial advisors, it is advisable to adopt a new Debt Management Policy.
FISCAL IMPACT:
No fiscal impact on the City.
ALTERNATIVES:
If the new policy is not adopted, the prior and existing debt policy will remain in place.
ACTIONS FOLLOWING APPROVAL:
Staff will update the City’s policy manuals to reflect the replacement policy. 1 COUNCIL RESOLUTION #XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
APPROVING A DEBT MANAGEMENT POLICY
RESOLVED, by the City Council (the “Council”) of the City of Chowchilla (the “City”), Madera County, State of California, as follows:
WHEREAS, pursuant to the provisions of section 8855(i) of the California Government Code, prior to the issuance or incurrence of any debt, the City is required to adopt local debt policies concerning the use of debt and that any proposed debt issuance is consistent with those local debt policies; and
WHEREAS, the City Council of the City previously adopted a debt management policy in order to comply with Government Code Section 8855(i). Bond Counsel to the City is recommending that such debt management policy be updated to better comply with current law and has developed a replacement debt management policy (“Replacement Debt Policy”) which includes a Policy for Disclosure Procedures (“Disclosure Procedures”) as Exhibit A to the Replacement Debt Policy (Replacement Debt Policy and Disclosure Policy collectively, “Debt Policy”) for the City and the Council desires to adopt such policy in connection with any proposed debt of the City; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
Section 1. The Debt Policy, in the form attached hereto, is hereby adopted by the Council for the City. The Debt Policy has been developed to provide guidance in the issuance and management of debt by the City or its related entities and is intended to comply with section 8855(i) of the California Government Code effective on January 1, 2017. The main objectives are to establish conditions for the use of debt, to ensure that debt capacity and affordability are adequately considered, to minimize the City’s interest and issuance costs, to maintain the highest possible credit rating, to provide complete financial disclosure and reporting and to maintain financial flexibility for the City.
Section 2. The Debt Policy attached hereto shall supersede and replace the City’s existing debt management policy.
Section 3. The City Administrator, the Finance Director, the City Clerk, and other appropriate officials of the City are hereby authorized and directed to take any actions and execute and deliver any and all documents as are necessary to accomplish the provisions and directives of this Resolution.
Section 4. This Resolution shall be effective upon adoption by the Council. 2 PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of May, 2026 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk
3 CITY OF CHOWCHILLA
LOCAL DEBT POLICY
Adopted as of May 12, 2026
(Resolution No. ______)
A. PURPOSE
The purpose of this Local Debt Policy (this “Policy”) is to establish guidelines and parameters for the effective governance, management and administration of debt and other financing obligations issued by the City and its related entities (such as City-formed community facilities districts).
As used in this Policy, “City” shall mean the City of Chowchilla and/or the City and its related entities, as the context may require. As used in this Policy, “debt” shall be interpreted broadly to mean bonds, notes, certificates of participation, financing leases, or other financing obligations, but the use of such term in this Policy shall be solely for convenience and shall not be interpreted to characterize any such obligation as an indebtedness or debt within the meaning of any constitutional debt limitation where the substance and terms of the obligation comport with exceptions thereto. This Policy shall apply to all debt issued or sold to third party lenders or investors and does not pertain to City internal interfund borrowings.
B. BACKGROUND
The City and its related entities are committed to fiscal sustainability by employing long-term financial planning efforts, maintaining appropriate reserves levels and employing prudent practices in governance, management, budget administration and financial reporting.
Debt levels and their related annual costs are important long-term obligations that must be managed within available resources. A disciplined thoughtful approach to debt management includes policies that provide guidelines for the City to manage debt in line with those resources.
Therefore, the objective of this policy is to provide written guidelines and restrictions concerning the amount and type of debt and other financing obligations issued by the City and its related entities and the ongoing management of the debt portfolio.
This Policy is intended to improve the quality of decisions, assist with the determination of the structure of debt issuance, identify policy goals, and demonstrate a commitment to long-term financial planning, including a multi-year capital plan. Adherence to a local debt policy signals to rating agencies and the capital markets that a government is well managed and should meet its obligations in a timely manner.
4 C. CONDITIONS AND PURPOSES OF DEBT ISSUANCE
1. Acceptable Conditions for the Use of Debt
The City believes that prudent amounts of debt can be an equitable and costeffective means of financing infrastructure and capital asset and project needs of the City. Debt will be considered to finance such projects if:
a) The project has been, or will be, included in the City’s capital improvement plan, equipment replacement program or has otherwise been coordinated with the City’s planning goals and objectives.
b) The project can be financed with debt not exceeding the term specified in Section E.1 of this Policy, to assure that long-term debt is not issued to finance projects with a short useful life.
c) It is the most cost-effective funding means available to the City, taking into account cash flow needs and other funding alternatives. d) It is fiscally prudent and meets the guidelines of this Policy. Any consideration of debt financing shall consider financial alternatives, including pay-as-you-go funding, proceeds derived from development or redevelopment of existing land and capital assets owned by the City, and use of existing or future cash reserves, or combinations thereof.
2. Acceptable Uses of Debt and Proceeds of Debt
The primary purpose of debt is to finance one of the following:
a) The City will consider long-term financing for the acquisition, substantial refurbishment, replacement, or expansion of capital assets (including but not limited to land improvements, infrastructure projects and equipment) for the following purposes:
i. Acquisition and or improvement of land, right-of-way or long-term easements.
ii. Acquisition of a capital asset with a useful life of three or more years.
iii. Construction or reconstruction of a facility.
iv. Although not the primary purpose of the financing effort, project reimbursables that include project planning design, engineering and other preconstruction efforts; project-associated furniture fixtures and equipment; capitalized interest, original issue discount, underwriter’s discount, and other costs of issuance.
5 b) Refunding, refinancing, or restructuring debt (including without limitation the refinancing or advance funding of City pension obligations), subject to refunding objectives and parameters discussed in Section G.
3. Short-Term Debt
a) In the event of temporary shortfalls in cash flow for City operation costs due to timing of receipt of revenues and the lack of cash on hand to cover the temporary deficit, the City may consider interim or cash flow financing, such as anticipation notes. In compliance with applicable state law, any such notes shall be payable either (i) not later than the last day of the fiscal year in which it is issued, or (ii) during the fiscal year succeeding the fiscal year in which issued, but in no event later than 15 months after the date of issue, and only if such note is payable only from revenue received or accrued during the fiscal year in which it was issued.
b) Short-term debt may be used to finance short-lived capital projects, such as lease purchase financing or equipment.
c) Prior to issuance of any short-term debt, a reliable revenue source shall be identified for repayment of the debt.
4. Internal Control Procedures Concerning Use of Proceeds of Debt One of the City’s priorities in the management of debt is to assure that the proceeds of the debt will be directed to the intended use for which the debt has been issued.
In furtherance of this priority, the following procedures shall apply:
a) The Director of Finance shall retain, for the applicable period specified in Section H.4. of this Policy, a copy of each annual report filed with the California Debt and Investment Advisory Commission (CDIAC) pursuant to Section 8855(k) of the California Government Code concerning (1) debt authorized during the applicable reporting period (whether issued or not), (2) debt outstanding during the reporting period, and (3) the use during the reporting period of proceeds of issued debt.
b) In connection with the preparation of each annual report to be filed with CDIAC pursuant to Section 8855(k) of the California Government Code, the Director of Finance or the designee of the Director of Finance shall keep a record of the original intended use for which the debt has been issued, and indicate whether the proceeds spent during the applicable one-year reporting period for such annual report comport with the intended use (at the time of original issuance or as modified pursuant to the following sentence). If a change in intended use has been authorized subsequent to the original issuance of the debt, the Director of Finance or the designee of the Director of Finance shall indicate in the record when the change in use was authorized and whether the City Council, City Administrator, or another City official has authorized the change in intended use. The Director of Finance shall report apparent deviations from the intended use 6 in debt proceeds to the City Administrator for further discussion, and if the City Administrator determines appropriate in consultation with legal counsel (which may be bond counsel, if applicable, or the City Attorney), to the City Council.
c) If the debt has been issued to finance a capital project and the project timeline or scope of project has changed in a way that all or a portion of the debt proceeds cannot be expended on the original project, the Director of Finance shall consult with the City Administrator and legal counsel (which may be bond counsel, if applicable, or the City Attorney) as to available alternatives for the expenditure of the remaining debt proceeds (including prepayment of the debt).
D. TYPE OF FINANCING INSTRUMENTS; AFFORDABILITY AND PLANNING
POLICIES
The City recognizes that there are numerous types of financing structures and funding sources available, each with specific benefits, risks, and costs. All potential funding sources are reviewed by management within the context of this Policy and the overall portfolio to ensure that any financial product or structure is consistent with the City’s objectives. Regardless of what financing structure(s) is utilized, due diligence review must be performed for each transaction, including the quantification of potential risks and benefits, and analysis of the impact on City creditworthiness and debt affordability and capacity.
Prior to the issuance of debt or other financing obligations to finance a project, the City will carefully consider the overall long-term affordability of the proposed debt issuance. The City shall not assume more debt or other financing obligations without conducting an objective analysis of the City’s ability to assume and support additional debt service payments. The City will consider its long-term revenue and expenditure trends, the impact on operational flexibility and the overall debt burden on the taxpayers. The evaluation process shall include a review of generally accepted measures of affordability and will strive to achieve and or maintain debt levels consistent with its current operating and capital needs.
1. General Fund-Supported Debt – General Fund Supported Debt generally include Certificates of Participation (“COPs”) and Lease Revenue Bonds (“LRBs”) which are lease obligations that are secured by an installment sale or by a lease-back arrangement between the City and another public entity. Typically, the City appropriates available General Fund moneys to pay the lease payments to the other public entity and, in turn, the public entity uses such lease payments received to pay debt service on the bonds or Certificates of Participation.
General Fund Supported Debt may also include bonds issued to refund obligations imposed by law, such as judgments (judgment obligation bonds (“JOBs”)) or unfunded accrued actuarial liabilities for pension plans (pension obligation bonds (“POBs”)).
These obligations do not constitute indebtedness under the state constitutional debt limitation and, therefore, are not subject to voter approval. 7 Payments to be made under valid leases are payable only in the year in which use and occupancy of the leased property is available, and lease payments may not be accelerated. Lease financing requires the fair market rental value of the leased property to be equal to or greater than the required debt service or lease payment schedule. The lessee (the City) is obligated to include in its Annual Budget and appropriate the rental payments that are due and payable during each fiscal year the lessee has use of the leased property.
2. Revenue Bonds – Long-term obligations payable solely from specific special fund sources, in general, are not subject to a debt limitation. Examples of such longterm obligations include those which are payable from a special fund consisting of restricted revenues or user fees (Enterprise Revenues) and revenues derived from the system of which the project being funded is a part.
In determining the affordability of proposed revenue bonds, the City will perform an analysis comparing projected annual net revenues (exclusive of depreciation which is a non-cash related expense) to estimated annual debt service. The City should strive to maintain a coverage ratio of 110% (or such higher coverage ratio included in the City’s existing financing documents), using historical and/or projected net revenues to cover annual debt service for bonds. To the extent necessary, the City shall undertake proceedings for a rate increase to cover both operations and debt service costs, and create debt service reserve funds to maintain the required coverage ratio.
3. Special Districts Financing – The City’s special districts primarily consist of Community Facilities Districts (“CFDs”) and 1913/1915 Act Assessment Districts (“Assessment Districts”). The City will consider requests for special district formation and debt issuance when such requests address a public need or provide a public benefit. Each application will be considered on a case by case basis, and the Director of Finance may not recommend a financing if it is determined that the financing could be detrimental to the debt position or the best interests of the City.
4. General Obligation Bonds – Notwithstanding their name, General Obligation Bonds are not general obligations of the City, but instead they are payable from and secured by a dedicated, voter-approved property tax override rate (i.e., a property tax in excess of the 1% basic ad valorem property tax rate which has received the approving two-thirds vote of the City’s electorate). While the dedicated revenue stream to repay the debt makes General Obligation Bonds an attractive option, additional considerations for this financing mechanism include the time and expense of an election, the possibility that the electorate will not approve the ballot measure, and the legal bonding capacity limit of the assessed value of all taxable property within the City. (At the time of the adoption of this Policy, the legal bonding capacity limit for a California general law city is 3.75% of the assessed value of all taxable property within the City.)
5. Tax Increment Financing – Tax increment financing is a financing method whereby a portion of ad valorem property taxes (commonly called the “tax increment”) that are allocated to an entity, such as a successor agency to redevelopment agency (Successor Agency), an enhanced infrastructure financing 8 district (EIFD), a community revitalization and investment authority (CRIA) or an infrastructure and revitalization financing district (“IRFD”), and the entity is permitted to incur debt payable from and secured by the tax increment revenues.
While tax increment debt for redevelopment agencies and Successor Agencies is entitled to the benefits of Article XVI, Section 16, of the California Constitution, no similar provision exists for EIFDs, CRIAs and IRFD at the time of adoption of this Policy. Therefore, when considering EIFD, CRIA or IRFD financing, or other types of tax increment financing which may be permitted by law in the future, debt limit concerns should be analyzed with respect to the proposed structure and taken into account in determining the practical viability of the proposed financing.
6. Conduit Debt – Conduit financing provides for the issuance of securities by a government agency to finance a project of a third party, such as a non-profit organization or other private entity. The City may sponsor conduit financings for those activities that have a general public purpose and are consistent with the City’s overall service and policy objectives. Unless a compelling public policy rationale exists, such conduit financings will not in any way pledge the City’s faith and credit.
E. STRUCTURE OF DEBT
1. Term of Debt – In keeping with Internal Revenue Service regulations for taxexempt financing obligations, the weighted average maturity of the debt should not exceed 120 percent of the weighted average economic life of the facilities or projects to be financed, unless specific circumstances exist that would mitigate the extension of time to repay the debt and it would not cause the City to violate any covenants to maintain the tax-exempt status of such debt, if applicable.
2. Rapidity of Debt Payment; Level Payment – To the extent practical, bonds will be amortized on a level repayment basis, and revenue bonds will be amortized on a level repayment basis considering the forecasted available pledged revenues to achieve the lowest rates possible. Bond repayments should not increase on an annual basis in excess of 2% without a dedicated and supporting revenue funding stream.
Accelerated repayment schedules reduce debt burden faster and reduce total borrowing costs. The Finance Department will amortize debt through the most financially advantageous debt structure and to the extent possible, match the City’s projected cash flow to the anticipated debt service payments. “Backloading” of debt service will be considered only when one or more of the following occur:
a) Natural disasters or extraordinary or unanticipated external factors make payments on the debt in early years prohibitive.
b) The benefits derived from the debt issuance can clearly be demonstrated to be greater in the future than in the present.
c) Such structuring is beneficial to the City’s aggregate overall debt payment schedule or achieves measurable interest savings.
9 d) Such structuring will allow debt service to more closely match projected revenues, whether due to lower project revenues during the early years of the project’s operation, inflation escalators in the enterprise user rates, or other quantifiable reasons.
3. Serial Bonds, Term Bonds, and Capital Appreciation Bonds – For each issuance, the City will select serial bonds or term bonds, or both. On the occasions where circumstances warrant, Capital Appreciation Bonds (CABs) may be used.
The decision to use term, serial, or CAB bonds is driven based on market conditions.
4. Reserve Funds – To the extent that the use of available City moneys to fund a reserve fund provides an economic benefit that offsets the cost of financing the reserve fund from bond proceeds (as determined by the Director of Finance in consultation with the City’s municipal advisor and, if applicable, the underwriter for the bonds), the City may use legally permitted moneys to fund a reserve fund (in cash or through the purchase of a debt service reserve surety bond or insurance policy) for the proposed bonds, up to the maximum amount permitted by applicable law or regulation. Typically, this amount is equal to the least of: (i) maximum annual debt service on the bonds, (ii) 10% of the principal amount of the bonds (or 10% of the sale proceeds of the bonds, within the meaning of Section 148 of the federal Internal Revenue Code), or (iii) 125% of average annual debt service on the bonds.
F. USE OF ALTERNATIVE DEBT INSTRUMENTS
Alternative debt instruments and financing structures sometimes can provide a lower cost of borrowing in the short run, but may involve greater medium-term or long-term risk. Due diligence review must be performed for each transaction, including the quantification of potential risks and benefits, analysis of the impact on City creditworthiness and debt affordability and capacity, and an evaluation of the ability of the City to withstand the medium-term or long-term risk attendant to alternative debt instruments, including the feasibility of exit strategies.
1. Variable Rate Debt
Variable rate debt affords the City the potential to achieve a lower cost debt depending on market conditions. However, the City will seek to limit the use of variable-rate debt due to the potential risks of such instruments. a) Purpose
The City shall consider the use of variable rate debt for the purposes of:
i. Reducing the costs of debt issues.
ii. Increasing flexibility for accelerating principal repayment and amortization.
10 iii. Enhancing the management of assets and liabilities (matching shortterm “priced debt” with the City’s short-term investments). b) Considerations and Limitations on Variable-Rate Debt The City may consider the use of all alternative structures and modes of variable rate debt to the extent permissible under State law and will make determinations among different types of modes of variable rate debt based on cost, benefit, and risk factors. The Director of Finance shall consider the following factors in considering whether to recommend variable rate debt:
i. With respect to General Fund supported debt, one of the following two criteria should be met as determined by the Director of Finance in his or her discretion: 1) any variable rate debt should not exceed 20% of total City General Fund supported debt; or 2) annual debt service on any variable rate debt should not exceed 5% of the annual General Fund Revenue.
ii. Any variable rate debt should be fully hedged by expected future capital fund reserves or unrestricted General Fund reserve levels, as applicable.
iii. Whether interest cost and market conditions (including the shape of the yield curves and relative value considerations) are unfavorable for issuing fixed rate debt.
iv. The likelihood of projected debt service savings when comparing the cost of fixed rate bonds.
v. Costs, implementation and administration are quantified and considered.
vi. Cost and availability of liquidity facilities (lines of credit necessary for variable rate debt obligations and commercial paper in the event that the bonds are not successfully remarketed) are quantified and considered.
vii. Whether the ability to convert debt to another mode (daily, monthly, fixed) or redeem at par at any time is permitted.
viii. Cost and availability of derivative products to hedge interest rate risk.
ix. The findings of a thorough risk management assessment. c) Risk Management
Any issuance of variable rate debt shall require a rigorous risk assessment, including, but not limited to factors discussed in this section. Variable rate debt subjects the City to additional financial risks (relative to fixed rate 11 bonds), including interest rate risk, tax risk, and certain risks related to providing liquidity for certain types of variable rate debt.
The City will properly manage the risks as follows:
i. Interest Rate Risk and Tax Risk – The risk that market interest rates increase on variable-rate debt because of market conditions, changes in taxation of municipal bond interest, or reductions in tax rates.
Mitigation – Limit total variable rate exposure per the defined limits, match the variable rate liabilities with short term assets, and/or purchase appropriate derivative products to hedge against the risk (see also Section F.2 below).
ii. Liquidity/Remarketing Risk – The risk that holders of variable rate bonds exercise their “put” option, tender their bonds, and the bonds cannot be remarketed requiring the bond liquidity facility provider to repurchase the bonds. This will result in the City paying a higher rate of interest to the facility provider and the potential rapid amortization of the repurchased bonds. Mitigation - Limit total direct variable-rate exposure. Seek liquidity facilities which allow for longer (5-10 years) amortization of any draws on the facility.
Endeavor to secure credit support facilities that result in bond ratings of the highest short-term ratings and long-term ratings not less than AA. If the City’s bonds are downgraded below these levels (or such other rating levels as provided in the applicable financing documents) as a result of the facility provider’s ratings, a replacement provider shall be sought.
iii. Liquidity/Rollover Risk – The risk that arises due to the shorter term of most liquidity provider agreements (1-5 years) relative to the longer-term amortization schedule of the City’s variable-rate bonds.
Liquidity and rollover risk includes the following risks: (1) the City may incur higher renewal fees when renewal agreements are negotiated, and (2) the liquidity bank market may constrict such that it is difficult to secure third party liquidity at any interest rate.
Mitigation – Negotiate longer terms on provider contracts to minimize the number of rollovers.
2. Derivatives
The use of certain derivative products to hedge variable rate debt, such as interest rate swaps, may be considered to the extent the City has such debt outstanding or under consideration. The City will exercise extreme caution in the use of derivative instruments for hedging purposes, and will consider their utilization only when sufficient understanding of the products and sufficient expertise for their appropriate use has been developed. A comprehensive derivative policy will be adopted by the City prior to any utilization of such instruments.
G. REFUNDING GUIDELINES
12 The Director of Finance shall monitor all outstanding City debt obligations for potential refinancing opportunities. The City will consider refinancing of outstanding debt to achieve annual savings or to refinance a bullet payment or spike in debt service. Except for instances in which a bullet payment or spike in debt service is being refinanced, absent a compelling reason or financial benefit to the City, any refinancing should not result in an increase to the weighted average life of the refinanced debt.
Except for instances in which a bullet payment or spike in debt service is being refinanced, the City will generally seek to achieve debt service savings which, on a net present value basis, are at least 3% of the debt being refinanced. The net present value assessment shall factor in all costs, including issuance, escrow, and foregone interest earnings of any contributed funds on hand. Any potential refinancing shall additionally consider whether an alternative refinancing opportunity with higher savings is reasonably expected in the future. Refundings which produce a net present value savings of less than 3% will be considered on a case-by-case basis H. MARKET COMMUNICATION, ADMINISTRATION, AND REPORTING
1. Rating Agency Relations and Annual or Ongoing Surveillance – The Director of Finance shall be responsible for maintaining the City’s relationships with ratings agencies such as Standard & Poor’s, Fitch Ratings and Moody’s Investors Service.
These agencies’ rating criteria often change and the City cannot control the decisions made by any rating agency. However, for each debt issue that the City will seek a rating assignment, the City will strive to obtain and maintain the highest possible underlying, uninsured rating. In addition to general communication, the Director of Finance shall:
a) Ensure the rating agencies are provided updated financial statements of the City as they become publicly available.
b) Communicate with credit analysts at each agency as may be requested by the agencies.
c) Prior to each proposed new debt issuance, schedule meetings or conference calls with agency analysts and provide a thorough update on the City’s financial position, including the impacts of the proposed debt issuance.
2. Council Communication – The Director of Finance should report feedback from rating agencies, when and if available, regarding the City’s financial strengths and weaknesses and areas of concern relating to weaknesses as they pertain to maintaining the City’s existing credit ratings.
3. Initial and Continuing Disclosure Procedures – A Policy for Disclosure Procedures addressing the City’s process for preparing initial disclosure in connection with the public offering of municipal securities and compliance with continuing disclosure undertakings is attached hereto as Exhibit A and incorporated herein.
4. Debt Issue Record-Keeping – A copy of all debt-related records shall be retained at the City’s offices. At minimum, these records shall include all official 13 statements, bond legal documents/transcripts, resolutions, trustee statements, leases, and title reports for each City financing (to the extent available).
Such records shall be retained while any bonds of an issue are outstanding and during the three-year period following the final maturity or redemption of the bond issue or, if later, while any bonds that refund bonds of that original issue are outstanding and for the three year period following the final maturity or redemption date of the latest refunding bond issue.
5. Arbitrage Rebate – The use of bond proceeds and their investments must be monitored to ensure compliance with all arbitrage rebate requirements of the Internal Revenue Code and related Internal Revenue Service regulations, in keeping with the covenants of the City and/or related entity in the tax certificate for any federally tax-exempt financing. The Director of Finance shall ensure that all bond proceeds and investments are tracked in a manner which facilitates accurate calculation; and, if a rebate payment is due, such payment is made in a timely manner.
I. CREDIT RATINGS
The City will consider published ratings agency guidelines regarding best financial practices and guidelines for structuring its capital funding and debt strategies to maintain the highest possible credit ratings consistent with its current operating and capital needs.
J. SB 1029 COMPLIANCE
Senate Bill 1029, signed by Governor Brown on September 12, 2016, and enacted as Chapter 307, Statutes of 2016, requires issuers to adopt debt policies addressing each of the five items below:
i. The purposes for which the debt proceeds may be used.
Section C.2 (Acceptable Uses of Debt and Proceeds of Debt) and Section C.3 (Prohibited Use of Debt and Proceeds of Debt) address the purposes for which debt proceeds may be used.
ii. The types of debt that may be issued.
Section C.3 (Short-Term Debt), Section D (Types of Financing Instruments; Affordable and Planning Policies), Section E (Structure of Debt) and Section F (Use of Alternative Debt Instruments) are among the provisions that provide information regarding the types of debt that may be issued.
iii. The relationship of the debt to, and integration with, the issuer's capital improvement program or budget, if applicable.
Section C.1 (Acceptable Conditions for the Use of Debt) provides information regarding the relationship between the City's debt and Capital Improvement Program.
iv. Policy goals related to the issuer's planning goals and objectives. 14 As described in Section B (BACKGROUND), Section D (TYPES OF FINANCING; AFFORDABILITY AND PLANNING POLICIES) and other sections, this Policy has been adopted to assist with the City’s goal of maintaining fiscal sustainability and financial prudence.
v. The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use.
Section C4 (Internal Control Procedures Concerning Use of Proceeds of Debt) provides information regarding the City's internal control procedures designed to ensure that the proceeds of its debt issues are spent as intended.
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EXHIBIT A
DISCLOSURE PROCEDURES
CITY OF CHOWCHILLA
POLICY FOR DISCLOSURE PROCEDURES
PURPOSE
The purpose of this Policy for Disclosure Procedures (the “Policy”) is to memorialize and communicate the policies and procedures in connection with obligations, including notes, bonds and certificates of participation, issued by the City of Chowchilla (the “City”) to ensure that the City continues to comply with all applicable disclosure obligations and requirements under the federal securities laws.
BACKGROUND
The City occasionally issues certificates of participation, assessment bonds, notes or other obligations (collectively, “Obligations”) in order to fund or refund capital investments, or other long-term programs. In offering Obligations to the public, and at other times when the City makes certain reports, the City must comply with the “anti-fraud rules” of federal securities laws (the “anti-fraud rules” includes Section 17 of the Securities Act of 1933 [15 U.S.C. § 77a, et seq.] and Section 10(b) of the Securities and Exchange Act of 1934 [15 U.S.C.A. § 78j], and regulations promulgated by the Securities and Exchange Commission under those Acts (particularly “Rule 10b-5” under the 1934 Act at 17 C.F.R. § 240.10b–5).
The core requirement of these rules is that potential investors in Obligations must be provided with all “material” information relating to the offered Obligations. The information provided to investors must not contain any material misstatements, and the City must not omit material information which would be necessary to provide to investors a complete and transparent description of the Obligations and the City’s financial condition.
When the City issues Obligations, the two central disclosure documents which are prepared are a preliminary official statement (“POS”) and a final official statement (“OS”; collectively with the POS, “Official Statement”). The Official Statement generally consists of (i) a description of the specific transaction including maturity dates, interest rates, redemption provisions, the specific type of financing, the leased premises (in certificate of participation financings) and other matters particular to the financing; (ii) information on the source of payment for the Obligations (discussed in the next paragraph); and (iii) various other appendices, including the City’s audited financial report, form of the proposed legal opinion, and form of continuing disclosure undertaking.
Investors use the Official Statement as one of their primary resources for making informed investment decisions regarding the City’s Obligations.
The City issues Obligations payable from different sources, including the City’s General Fund. The Official Statement for a given transaction must reflect the particular source of payment.
In General Fund-backed financings, the Official Statement will include a section which provides information on the financial condition of the City’s General Fund and other relevant City financial data (the “City Section”).
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ENGAGEMENT OF OUTSIDE DISCLOSURE COUNSEL
The City engages outside legal counsel with expertise in securities laws for advice with respect to the City’s disclosure obligations and requirements under the federal securities laws (“Disclosure Counsel”). Disclosure Counsel assists the City in preparing the Official Statement and reviews all new data and updates to the Official Statement. Throughout the process of receiving and incorporating material, Disclosure Counsel provides advice as to standards of materiality and other securities law issues. Disclosure Counsel has a confidential, attorney-client relationship with the City.
Disclosure Counsel provides a negative assurance letter to the underwriters as to the disclosure set forth in the Official Statement for each Obligation. The letter advises the underwriters that, as a matter of fact and not opinion, no information came to the attention of the attorneys working on the transaction which caused them to believe that the Official Statement as of its date and as of the date of their letter (except for any financial, statistical, economic or demographic data or forecasts, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion, and other customary exclusions), contained or contains any untrue statement of a material fact or omitted or omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
DISCLOSURE PROCESS
When the City determines to issue Obligations, the Director of Finance requests involved City Department Directors to commence preparation of the portions of the Official Statement for which they are responsible. While the general format and content of the Official Statement secured by a particular revenue source does not normally change substantially from offering to offering, except as necessary to reflect major events, the City Administrator, Director of Finance, and City Attorney (or their designees) are separately responsible for reviewing and preparing or updating certain portions of the Official Statement which are within their particular area of knowledge.
Additionally, all participants in the disclosure process are separately responsible for reviewing the entire Official Statement.
Disclosure Counsel and the City’s Municipal Advisor assist the Director of Finance and City Administrator in determining the materiality of any particular item, and the development of specific language in the Official Statement. Disclosure Counsel also assists the City in the development of a “big picture” overview of the financial condition of the General Fund or particular enterprise included in the Official Statement. This overview highlights particular areas of concern. Disclosure Counsel has a confidential, attorney-client relationship with the City.
The Director of Finance schedules one or more meetings or conference calls of the financing team working group (which includes City officials, the City’s municipal advisor, Bond and Disclosure Counsel, the underwriter of the Obligations, and its counsel), and new drafts of the Official Statement are circulated and discussed. During this part of the process, there is substantial contact among City Department Directors (or their designees), other members of the financing team and Disclosure Counsel, to discuss issues which may arise, determine the materiality of particular items and ascertain the prominence in which the items should be disclosed.
Before distributing a POS to potential investors, there is a formal meeting which includes City officials involved in the preparation of the POS and the underwriters and their counsel, during A-3
which the Official Statement is reviewed in its entirety, page by page or section by section, to obtain final comments and to allow the underwriters to ask questions of the City’s senior officials.
This is referred to as a “due diligence” meeting.
A substantially final form of the POS is provided to the City Council in advance of approval to afford the City Council an opportunity to review the POS, ask questions and make comments.
The substantially final form of the POS is approved by the City Council which generally authorizes certain senior staff to make additional corrections, changes and updates to the POS in consultation with the City Attorney and Disclosure Counsel.
At the time the POS is posted for review by potential investors, senior City officials execute certificates deeming certain portions of the POS complete (except for certain pricing terms) as required by Securities and Exchange Commission (“SEC”) Rule 15c2-12.
Between the posting of the POS for review by potential investors and delivery of the final OS to the underwriter for redelivery to actual investors in the Obligations, any changes and developments will have been incorporated into the POS, including particularly the City Section, if required. If necessary, to reflect developments following publication of the POS or OS, as applicable, supplements will be prepared and published.
In connection with the closing of the transaction, one or more senior City officials execute certificates stating that certain portions of the OS, as of the date of each OS and as of the date of closing, do not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements contained in the OS in light of the circumstances under which they were made, not misleading. The City Attorney also provides an opinion letter for underwriters. Generally, that opinion letter will inform underwriters that information contained in the section of the OS relating to the City and its operations (or specified portions thereof) as of the date of the opinion letter did not, and as of the date of the closing, does not, contain any untrue statement of a known material fact or omitted or omits to state any known material fact necessary to make the statements within the OS, in light of the circumstances under which they were made, not misleading. The City Attorney does not opine to any financial, statistical, economic or demographic data or forecasts, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion, and certain other customary matters.
DEVELOPMENT OF INFORMATION FOR THE OBLIGATIONS
The information contained in the City Section is developed by City personnel under the direction of the Director of Finance, with the assistance of the financing team. In certain circumstances, additional City officials will be involved, as necessary. The following principles govern the work of the respective City personnel that contribute information to the City Section:
City employees involved in the disclosure process are responsible for being familiar with federal securities laws as they relate to disclosure.
City employees involved in the disclosure process should be instructed to err on the side of raising issues when preparing or reviewing information for disclosure. Officials and other personnel are encouraged to consult with Disclosure Counsel if there are questions regarding whether an issue is material or not.
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Care should be taken not to shortcut or eliminate any steps outlined in the Policy on an ad hoc basis. However, the Policy is not necessarily intended to be a rigid list of procedural requirements, but instead to provide guidelines for disclosure review. If warranted, based on experience during financings or because of additional SEC pronouncements or other reasons, the City should consider revisions to the Procedures.
The process of updating Official Statements from transaction to transaction should not be viewed as being limited to updating tables and numerical information. While it is not anticipated that there will be major changes in the form and content of the Official Statements secured by a particular revenue source at the time of each update, everyone involved in the process should consider the need for revisions in the form, content and tone of the sections for which they are responsible at the time of each update.
The City must make sure that the particular officials involved in the disclosure process are of sufficient seniority such that it is reasonable to believe that, collectively, they are in possession of material information relating to the City and its finances.
ANNUAL CONTINUING DISCLOSURE REQUIREMENTS
In connection with issuing of Obligations, the City entered into a number of agreements (“Continuing Disclosure Certificates”) to provide annual reports related to its financial condition (including its audited financial statements) as well as notice of certain events relating to the Obligations specified in the Continuing Disclosure Certificates. The City must comply with the specific requirements of each Continuing Disclosure Certificate. The City’s Continuing Disclosure Certificates generally require that the annual reports be filed within nine months after the end of the City’s fiscal year, and event notices are generally required to be filed within 10 days of their occurrence.
Specific events which require “enumerated event” notices are set forth in each particular Continuing Disclosure Certificate.
The Director of Finance is responsible for preparing and filing the annual reports and enumerated event notices required pursuant to the Continuing Disclosure Certificates and for other secondary market disclosures as described under the caption “Secondary Market Disclosure.” The City may engage a dissemination agent to assist with its annual reports and enumerated event notices. Particular care must be paid to the timely filing of any changes in credit ratings on Obligations (including changes resulting from changes in the credit ratings of insurers of particular Obligations).
The City Attorney or Director of Finance will provide written notice to the City Council of any receipt by the City of any default, event of acceleration, termination event, modification of terms (only if material or may reflect financial difficulties), or other similar events (collectively, a “Potentially Reportable Event”) under any agreement or obligation to which the City is a party and which may be a “financial obligation” as discussed below. Such written notice should be provided by the City Attorney or Director of Finance to the City Council as soon as the City Attorney or Director of Finance is provided written notice or otherwise informed by knowledgeable City personnel, consultants, or external parties of such event. The Director of Finance with the assistance of Bond and Disclosure Counsel, will determine whether notice of such Potentially Reportable Event is required to be filed on the Electronic Municipal Market Access (“EMMA”) A-5
pursuant to the disclosure requirements of SEC Rule 15c2-12 (the “Rule”). If filing on EMMA is required, the filing is due within 10 business days of such Potentially Reportable Event to comply with the continuing disclosure undertaking for the various debt obligations of the City. The Director of Finance will notify the City Council of such events.
The City Attorney or Director of Finance will report to the City Council regarding the execution by the City of any agreement or other obligation which might constitute a “financial obligation” for purposes of the Rule. Amendments to existing City agreements or obligations with “financial obligation,” which relate to covenants, events of default, remedies, priority rights, or other similar terms, should be reported to the City as soon as the City Attorney or Director of Finance is provided written notice or otherwise notified by knowledgeable City personnel, consultants, or external parties of such event. The Director of Finance will determine, in consultation with the City Attorney and with the assistance of Bond and Disclosure Counsel, whether such agreement or other obligation constitutes a material “financial obligation” for purposes of the Rule. If such agreement or other obligation is determined to be a material “financial obligation” or a material amendment to a “financial obligation” described above, notice thereof would be required to be filed on EMMA within 10 business days of execution or incurrence. The types of agreements or other obligations that could constitute “financial obligations” and would need to be reported on EMMA include:
1. Bank loans or other obligations which are privately placed;
2. State or federal loans;
3. Commercial paper or other short-term indebtedness for which no offering document has been filed on EMMA;
4. Letters of credit, surety policies or other credit enhancement with respect to the City’s publicly offered debt;
5. Letters of credit, including letters of credit which are provided to third parties to secure the City’s obligation to pay or perform (an example of this is a standby letter of credit delivered to secure the City’s obligations for performance under a mitigation agreement);
6. Capital leases for property, facilities, fleet or equipment; and
7. Agreements which guarantee the payment or performance obligations of a third party (regardless of whether the agreements constitute guarantees under California law).
Types of agreements that could be a “financial obligation” under the Rule include:
1. Payment agreements which obligate the City to pay a share of another public agency’s debt service (for example, an agreement with a joint powers agency whereby the City agrees to pay a share of the joint powers agency’s bonds, notes or other obligations); and
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2. Service contracts with a public agency or a private party pursuant to which the City is obligated to pay a share of such public agency or private party’s debt service obligation (for example, certain types of Public-Private Partnership arrangements).
Types of agreements that may be a “financial obligation” subject to the Rule include:
1. Any agreement the payments under which are not characterized as an operation and maintenance expenses for accounting purposes if such agreement could be characterized as the borrowing of money;
The Director of Finance will continue to work with the City Attorney and Bond and Disclosure Counsel to refine the definition of financial obligation going forward based on future SEC guidance.
SECONDARY MARKET DISCLOSURE
On February 7, 2020, the SEC released a staff legal bulletin (the “Bulletin”) concerning secondary market disclosure in the municipal bond market. The Bulletin included SEC views on a variety of matters including, without limitation, the applicability of the federal securities law to public agency websites, reports delivered to governmental and institutional bodies and statements made by public officials including elected board members. Documents, reports and other written statements of the City which contain current financial and operational conditions of the City will be included in a section of the City’s website appropriately identified. The City and its Bond and Disclosure Counsel have reviewed the Bulletin and have incorporated certain SEC staff recommendations into this Policy. The City and its Bond and Disclosure Counsel will be cognizant of those reviews and will consider whether those reviews require the City to make secondary market disclosures.
REPORT TO THE CITY COUNCIL
Item 6.3
CLICK HERE
TO RETURN TO
THE AGENDA
Meeting of: May 12, 2026
AGENDA SECTION: New Business
SUBJECT: Approval of a Resolution Awarding Contract for the Ventura Avenue Pavement Resurfacing Project to Platinum General Engineering and Authorizing the City Administrator or Designee to Execute Related Documents and Amending the Fiscal Year 2025/26 Budget
PREPARED BY: Christina Soares, Administrative Analyst
PRESENTED BY: Dustin Ensminger, 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 Ventura Avenue Pavement Resurfacing Project in the amount of $367,711.73 to Platinum General Engineering and authorizing the City Administrator or designee to execute related documents on behalf of the City and amend the City of Chowchilla Fiscal Year (FY) 2025/26 Budget.
BACKGROUND:
The Ventura Avenue Pavement Resurfacing Project, will consist of a cape seal of Ventura Avenue from 3rd Street to 15th Street, construction of bulbouts from 5thStreet to 11th Street, and restriping of the roadway.
The City began advertising the Project for bids on April 1, 2026. 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 three (3) contactors on April 28, 2026, as follows:
Contractor Bid Amount
Platinum General Engineering $367,711.73
VSS International $392,325.00
Zara Construction $767,822.25
The Engineer’s Estimate was $380,000. Staff has reviewed the bid submitted by Platinum General Engineering, along with information regarding their previous work experience. Based on review, Staff has determined the bid submitted is responsive and Platinum General Engineering to be a responsible contractor. Staff recommends City Council award the contract for the Ventura Avenue Pavement Resurfacing Project to Platinum General Engineering.
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). However, the Regional Surface Transportation Program and Measure T – RTP funding was not included in the Fiscal Year 2025/26 Budget and CIP for the Ventura Avenue Pavement Resurfacing Project. As a result, the project requires the budgets be amended in order to fully fund the project. As such, staff is requesting Council amend the budget and CIP as follows.
Amount
Construction Costs
Contingency $73,542.37
CM/Inspection/Testing $43,000.00
Construction/Maintenance $367,711.73
Total Construction $484,254.10
Construction Funding
Regional Surface Transportation Program (RSTP) $224,872.00 Measure T - RTP $300,000.00
Total Construction Funding $524,872.00
Surplus / (Deficit) $40,617.90
ALTERNATIVES:
1. City Council may reject all bids.
ACTIONS FOLLOWING APPROVAL:
1. Finance will amend the FY 25/26 City Budget
2. Execution of Contract
3. Pre-Construction Meeting
4. Issue Notice to Proceed
COUNCIL RESOLUTION NO # XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
AWARDING CONTRACT FOR THE VENTURA AVENUE PAVEMENT RESURFACING PROJECT TO
PLATINUM GENERAL ENGINEERING AND AUTHORIZING THE CITY ADMINISTRATOR OR DESIGNEE TO EXECUTE RELATED DOCUMENTS AND AMENDING THE FISCAL YEAR 25/26 BUDGET
WHEREAS, the Invitation to Bid for the Ventura Avenue Pavement Resurfacing Project (the “project”) was published in the Madera Tribune, posted on OpenGov, and submitted to the appropriate construction trade journals and builder’s exchanges; and WHEREAS, the following bids for the Project were received and publicly opened and read aloud at the Chowchilla City Hall on April 28, 2026 at 3:00 p.m.:
Contractor Bid Amount
Platinum General Engineering $367,711.73
VSS International $392,325.00
Zara Construction $767,822.25
WHEREAS, the City Engineer’s Opinion of Probable Construction Costs for the project was $380,000; and
WHEREAS, the City Engineer has determined the bid submitted by Platinum General Engineering to be responsive and Platinum General Engineering to be a responsible contractor; and WHEREAS, the City Engineer recommends the Project be awarded to Platinum General Engineering; and
WHEREAS, on June 24th, 2025, the Chowchilla City Council adopted fiscal year 2025-2026 with Resolution #91-25 and;
WHEREAS, expenditure and transfer accounts will need to be amended within the Project budgets, and RSTP Fund budgets in the amount of $224,872 for the Project; and WHEREAS, expenditure and transfer accounts will need to be amended within the Project budgets, and Measure T – RTP Fund budgets in the amount of $300,000 for the Project; and WHEREAS, expenditure and transfer accounts will need to be reduced within the Project budgets, and General Fund budgets in the amount of $100,000 for the Project; and WHEREAS, expenditure and transfer accounts will need to be reduced within the Project budgets, and Street Degradation Fees budgets in the amount of $320,000 for the Project; and WHEREAS, an adequate fund balance is available in said Funds to allow for said increase of appropriations;
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 Platinum General Engineering is responsive.
3. The construction contract for the Project is awarded to Platinum General Engineering in the amount of $367,711.73 with a contingency of $73,542.37.
4. The City Administrator is authorized to execute the contract on behalf of the City of Chowchilla.
5. The Finance Director is authorized to make such other revisions, individual appropriation line-items, changes in summaries, fund totals, grand totals, and other portions of the budget document as necessary to reflect and implement the changes specified in this resolution including the following amendments:
a. Transfer In to Streets from RSTP Fund – Increase $224,872 b. Transfer Out from RSTP Fund to Streets – Increase $224,872 c. Transfer In to Street from Measure T – RTP Fund – Increase $300,000 d. Transfer Out from Measure T – RTP Fund to Streets – Increase $300,000 e. Transfer In to Streets from General Fund – Decrease $100,000 f. Transfer Out of General Fund to Streets – Decrease $100,000 g. Transfer In to Streets from Street Degradation Fees – Decrease $320,000 h. Transfer Out from Streets to Street Degradation Fees to Streets – Decrease $320,000
6. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of May, 2026 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 6.4
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TO RETURN TO
THE AGENDA
Meeting of: May 12, 2026
AGENDA SECTION: New Business
SUBJECT: Chowchilla General Plan Annual Progress Report and Annual Housing Element Progress Report for 2025
PREPARED BY: Susan Long, Contract City Planner
REVIEWED BY: Denise Munoz, Community and Economic Development Director ATTACHMENTS: Resolution
General Plan Annual Progress Report for 2025
Annual Housing Element Progress Report for 2025
REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:
Staff recommends the City Council consider the General Plan Annual Progress Report and the Housing Element Annual Progress Report for the 2025 calendar year and approve the resolution accepting the reports.
BACKGROUND:
The General Plan Annual Progress Report (APR) and the Annual Housing Element Progress Report are documents reviewed by the local legislative body that summarize the City’s progress with implementing the policies and programs from the City’s General Plan and Housing Element Goals. These reports are used to inform the public and other various agencies of how the community is performing to meet our goals and housing targets.
The General Plan APR gives the California Land Use and Climate Innovation (LCI) the opportunity to identify statewide trends in land use decision-making and how local planning and development activities relate to statewide planning goals and policies. The Annual Housing Element Report informs the California Department of Housing and Community Development (HCD) of various types of projects and programs moving forward within the community that assist the community with growing it’s housing stock. These reports work interchangeably and are required to be submitted annually to LCI and HCD by April 1st of each year to remain eligible to receive future grants. After accepted by the City Council, staff will submit these progress reports to the respective agencies.
For the year 2025, the City of Chowchilla issued a total of 121 building permits for residential construction projects. This included 36 building permits for Single-Family Residences, 80 for Multi-Family Residences, and 5 Accessory Dwelling Units.
DISCUSSION
During the 2025 calendar year, the City continued implementation of the General Plan and Housing Element through development review, zoning consistency updates, Housing Element implementation activities, environmental review, infrastructure coordination, and circulation planning.
Major implementation activities completed during 2025 included:
• Continued implementation of the City’s 6th Cycle Housing Element; • Adoption of Housing Element-related amendments on March 11, 2025, and June 24, 2025; • Ongoing review of residential, commercial, industrial, and mixed-use development proposals; • Continued implementation of Environmental Justice policies adopted pursuant to SB 1000; • Coordination with regional and state agencies during development review and CEQA processing; • Implementation of vehicle miles traveled (VMT) review procedures; • Continued implementation of ADU regulations and housing opportunity programs; • Review of development proposals for consistency with infrastructure, circulation, public facility, and environmental requirements.
The APR also includes the City’s annual Housing Element reporting information required by Government Code Section 65400.1, including residential permit activity and progress toward meeting the City’s RHNA obligations.
The APR is informational in nature and does not amend the General Plan or approve any development entitlements.
ENVIRONMENTAL REVIEW ANALYSIS:
The City of Chowchilla’s 2040 General Plan (SCH # 2009022007) and Program Environmental Impact Report (PEIR) was certified on May 2, 2011.
The City of Chowchilla 6th Cycle (2024-2032 Adopted Eight-Year Housing Element was deemed to be in full compliance with State Housing Element Law (Article 10.6 of the Government Code) in December 2024.
No additional CEQA analysis is required for the acceptance of these annual progress reports.
FISCAL IMPACT
There is no impact to the City’s general fund.
ALTERNATIVES:
1. Continue the item to a future City Council meeting (date and time to be specified in City Council motion).
2. Approve, subject to amendments (identify specific findings and/or conditions amended; or, to be addressed in City Council motion); or,
3. Deny; or,
4. Refer to City Staff for reconsideration of specific items to be addressed in City Council motion.
ACTIONS FOLLOWING APPROVAL:
If formally accepted by the City Council, staff will submit the annual progress reports to HCD and LCI.
COUNCIL RESOLUTION # XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA,
ACCEPTING GENERAL PLAN ANNUAL PROGRESS REPORT AND ANNUAL HOUSING ELEMENT PROGRESS REPORT FOR THE 2025 YEAR
WHEREAS, the General Plan Annual Progress Report (APR) is a document accepted by the local legislative body that summarizes the City’s progress with implementing goals, policies, and programs from the City’s General Plan; and,
WHEREAS, the Annual Housing Element Progress Report (AHEPR) is a document accepted by the local legislative body that summarizes the City’s progress with implementing goals, policies, and programs from the City’s Housing Element; and,
WHERAS, APR & AHEPR inform the public of the progress in meeting the community’s goals; and, WHERAS, the APR & AHEPR provides information for decision makers to assess how the General Plan was implemented during the 12-month reporting period; and, WHERAS, the AHEPR provides information for decision makers regarding residential development that occurred during the 12-month reporting period; and, WHEREAS, APR & AHEPR explain how land use decisions relate to adopted goals, policies, and implementation measures of the General Plan and more specifically the Housing Element within the General Plan; and,
WHEREAS, the APR & AHEPR provide information to identify necessary "course adjustments" or modifications to the General Plan and means to improve local implementation; and, WHEREAS, the General Plan APR gives the California Land Use and Climate Innovation (LCI) the opportunity to identify statewide trends in land use decision-making and how local planning and development activities relate to statewide planning goals and policies; and, WHEREAS, the AHEPR gives the California Department of Housing and Community Development (HCD) the ability to review local planning and residential development activities are being implemented as they relate to statewide planning goals and policies; and, WHEREAS, after the APR is accepted, it will subsequently be sent to LCR; and, WHEREAS, after the AHEPR is accepted, it will subsequently be sent to HCD and LCI; and, WHEREAS, after submitting to HCD and LCI, if the agencies request any minor updates to the reports, staff will complete those and resubmit back to each agency as requested; and, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
1. The above recitals are true and correct;
2. The City of Chowchilla 2040 General Plan (SCH # 2009022007) and Program Environmental Impact Report (PEIR) was certified on May 2, 2011; No additional CEQA analysis is required for the acceptance of these progress reports.
3. That the City Council of the City of Chowchilla ACCEPTS the General Plan Annual Progress report for the 2025 year.
4. That the City Council of the City of Chowchilla ACCEPTS the Annual Housing Element Progress Report for the 2025 year.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 12th day of May, 2026 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
Mayor Kelly Smith
ATTEST:
Joann McClendon, CMC
City Clerk