Transfer of Amounts by Trustee
The Indenture creates accounts within the Debt Service Fund as set forth below, to be known respectively as the Interest Account, the Principal Account, and the Reserve Account. Moneys in the Debt Service Fund will be transferred by the Trustee in the following amounts at the following times, for deposit in the following respective accounts within the Debt Service Fund, which are established with the Trustee by the Indenture, in the following order of priority (provided further that, if on the fifth (5th) Business Day prior to the date the Successor Agency is required to transfer amounts on deposit in the Special Fund to the Trustee there are not amounts on deposit therein sufficient to make the following deposits, taking into account amounts required to be transferred with respect to Bonds other than the 2024 Bonds, the Successor Agency will immediately notify the Trustee of the amount of any such insufficiency and the Trustee will deposit amounts received from the Successor Agency into sub-accounts of the Interest Account and/or Principal Account, as applicable, on a prorata basis):
Interest Account. On or before the fifth (5th) Business Day preceding each Interest Payment Date, commencing with the Interest Payment Date of September 1, 2024, the Successor Agency will withdraw from the Special Fund and transfer to the Trustee, for deposit in the Interest Account an amount which when added to the amount contained in the Interest Account on that date, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds on such Interest Payment Date. No such transfer and deposit need be made to the Interest Account if the amount contained therein is at least equal to the interest to become due on the next succeeding Interest Payment Date upon all of the Outstanding Bonds. All moneys in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying the interest on the 2024 Bonds as it becomes due and payable.
Principal Account. On or before the fifth (5th) Business Day preceding September 1 in each year in which principal is due on any Bonds, the Successor Agency will withdraw from the Special Fund and transfer to the Trustee for deposit in the Principal Account an amount which, when added to the amount then contained in the Principal Account, will be equal to the principal becoming due and payable on the Outstanding Serial Bonds and Outstanding Term Bonds, including pursuant to mandatory sinking account redemption, on the next September 1. No such transfer and deposit need be made to the Principal Account if the amount contained therein is at least equal to the principal to become due on the next September 1 on all of the Outstanding Bonds.
All moneys in the Principal Account will be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Serial Bonds and the Term Bonds, including by mandatory sinking account redemption, as the same becomes due and payable.
Reserve Account. There has been established in the Debt Service Fund by the Indenture a separate account known as the “Reserve Account” solely as security for payments on the 2024 Bonds payable by the 13 4887-4047-9672v4/200456-0005
Successor Agency pursuant to the Indenture, which will be held by the Trustee in trust for the benefit of the Owners of the 2024 Bonds.
The Reserve Requirement for the 2024 Bonds or any series (or multiple series) of Parity Debt for which a reserve is to be funded will be calculated, as of any date of computation, as the lesser of: (i) 125% of the average Annual Debt Service with respect to such series (or multiple series) of Bonds, (ii) Maximum Annual Debt Service with respect to such series (or multiple series) of Bonds, or (iii) with respect to such series (or multiple series) of Bonds, 10% of the original principal amount of such series (or multiple series) of Bonds (or, if such series (or multiple series) of Bonds has more than a de minimis amount of original issue discount or premium, 10% of the issue price of such series (or multiple series) of Bonds; provided, that in no event shall the Successor Agency, in connection with the issuance or incurrence of Parity Debt be obligated to deposit an amount in the Reserve Account which is in excess of the amount permitted by the applicable provisions of the Code to be so deposited from the proceeds of tax-exempt bonds without having to restrict the yield of any investment purchased with any portion of such deposit and, in the event the amount of any such deposit into the Reserve Account is so limited, the Reserve Requirement shall, in connection with the issuance of such Parity Debt, be increased only by the amount of such deposit as permitted by the Code; and, provided further that the Successor Agency may meet all or a portion of the Reserve Requirement by depositing a Qualified Reserve Account Credit Instrument meeting the requirements of the Indenture. See the caption “INTRODUCTORY STATEMENT—Reserve Account.”
The Reserve Requirement for the 2024 Bonds will be satisfied by the delivery of the Reserve Policy by the 2024 Insurer on the Closing Date with respect to the 2024 Bonds with a stated policy amount of $__________. The Successor Agency will have no obligation to replace the Reserve Policy or to fund the Reserve Account with cash if, at any time that the 2024 Bonds are Outstanding, any rating assigned to the 2024 Insurer is downgraded, suspended or withdrawn or amounts are not available under the Reserve Policy, other than in connection with a draw on the Reserve Policy. See the caption “BOND INSURANCE.” No Reserve Account Required for Parity Debt. The Indenture permits the issuance of Parity Debt without funding any reserve requirement with respect to such Parity Debt. In the event the Successor Agency has insufficient revenues to pay debt service on the 2024 Bonds and Parity Debt, Pledged Tax Revenues would be applied pro-rata to the payment of such Parity Debt and the 2024 Bonds. See the caption “SECURITY FOR THE 2024 BONDS—Issuance of Additional Indebtedness.”
The Reserve Account established under the Indenture for the 2024 Bonds secures payment of the 2024 Bonds, and will not secure payment of Parity Debt. Any separate reserve account established for Parity Debt, and any moneys in such accounts, act only as security for the applicable Parity Debt and such moneys are not available to pay debt service on the 2024 Bonds. See Appendix B under the caption “SECURITY OF BONDS; FLOW OF FUNDS—Deposit of Amounts by Trustee—Reserve Account” for further information with respect to the procedure for drawing upon the Reserve Account.
Tax Increment Financing
General. Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of redevelopment projects through the use of tax increment revenues. This method provided that the taxable valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the effective date of the ordinance which adopts the redevelopment plan becomes the base year valuation. Assuming that the taxable valuation exceeds the base year level, the taxing agencies thereafter received that portion of the taxes produced by applying then current tax rates to the base year valuation, and the redevelopment agency was allocated the remaining portion produced by applying then current tax rates to the increase in valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency were authorized to be pledged to the payment of agency obligations.
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The Dissolution Act authorizes refunding bonds, including the 2024 Bonds, that are issued by a successor agency to be secured by a pledge of moneys deposited from time to time in a Redevelopment Property Tax Trust Fund held by a county auditor-controller with respect to that successor agency, which are equivalent to the tax increment revenues that were formerly allocated under the Redevelopment Law to the redevelopment agency and formerly authorized under the Redevelopment Law to be used for the financing of redevelopment projects, less amounts deducted pursuant to Section 34183(a) of the Dissolution Act for permitted administrative costs of the county auditor-controller. Under the Indenture, Tax Revenues consist of the amounts deposited or available for deposit from time to time in the Redevelopment Property Tax Trust Fund established pursuant to and as provided in the Dissolution Act. Successor agencies have no power to levy property taxes and must look specifically to the allocation of taxes as described above. See the caption “RISK FACTORS.” Tax Sharing. The Redevelopment Law authorized redevelopment agencies to make contractual payments to school districts and other taxing agencies to alleviate any financial burden or detriments to such taxing agencies caused by a redevelopment project. The Former Agency entered into agreements with various taxing entities for this purpose (See the caption “—Pass-Through Agreements” below). Additionally, Sections 33607.5 and 33607.7 of the Redevelopment Law required mandatory tax sharing applicable to redevelopment projects adopted after January 1, 1994, or amended thereafter in certain manners specified in such statutes (the “Statutory Pass-Through Amounts”). Statutory Pass-Through Amounts are payable from areas that were added to the Project Area in 1995, 2001, 2005 and 2008 (See the caption “—Statutory Pass-Through Amounts” below.) Further, redevelopment project areas adopted on or after January 1, 1985 and prior to January 1, 1994 were subject to payments to schools and to other affected taxing agencies that elected to receive tax revenue payments set forth under Section 33676 of the Law (“33676 Amounts,” and, together with the payments due under the Pass-Through Agreements and the Statutory Pass-Through Amounts, the “Pass-Through Payments”). The Redevelopment Plan for the Dinuba Redevelopment Project Area No. 2 was adopted in 1989 and one taxing entity, the Alta Public Cemetery District, elected to receive payments pursuant to Section 33676 of the Law; therefore, the Successor Agency is required to remit 33676 Amounts from Tax Revenues to the Alta Public Cemetery District (see the caption “PROPERTY TAXATION IN CALIFORNIA—Section 33676 Election” below).
The Dissolution Act requires the County Auditor-Controller to distribute from the Redevelopment Property Tax Trust Fund amounts required to be distributed as Pass-Through Payments to the taxing entities on each January 2 and June 1 before amounts are distributed by the County Auditor-Controller from the Redevelopment Property Tax Trust Fund to the Successor Agency’s Redevelopment Obligation Retirement Fund, unless: (i) Pass-Through Payment obligations have been made subordinate to debt service payments for the bonded indebtedness of the Successor Agency; (ii) (a) the Successor Agency has reported, by filing a Notice of Insufficiency with the County Auditor-Controller, no later than the December 1 or May 1 preceding the applicable January 2 or June 1 distribution date, as applicable, that the total amount available to the Successor Agency from the Redevelopment Property Tax Trust Fund allocation to the Successor Agency’s Redevelopment Obligation Retirement Fund, from other funds transferred from the Former Agency and from funds that have or will become available through asset sales and all redevelopment operations, is insufficient to fund the Successor Agency’s enforceable obligations, Pass-Through Payments and the Successor Agency’s administrative cost allowance for the applicable six-month period; and (b) the County Auditor-Controller and the State Controller have concurred with the Successor Agency that there are insufficient funds for such purposes for the applicable six-month period.
See “—Pass-Through Agreements,” “—Statutory Pass-Through Amounts” and “—33676 Amounts” for a further description of the Pass-Through Agreements, the Statutory Pass-Through Amounts and the 33676 Amounts payable from Tax Revenues.
The Dissolution Act provides for a procedure by which the Successor Agency may make payments under the Senior Pass-Through Agreements, Statutory Pass-Through Payments and 33676 Amounts subordinate to the 2024 Bonds. The Successor Agency has not undertaken the requisite procedures to subordinate such payments that are payable from Tax Revenues on a basis senior to the 2024 Bonds and, therefore, the pledge of 15 4887-4047-9672v4/200456-0005
Tax Revenues in favor of the 2024 Bonds is subordinate to payments of such amounts. See the caption “PLEDGED TAX REVENUES” for projections of Tax Revenues and the Senior Payments. See “THE PROJECT AREA” for additional information regarding assessed values and Tax Revenues generated in the Project Area.
Elimination of Housing Set-Aside. Before the dissolution of the Former Agency, the Redevelopment Law required the Former Agency to set aside not less than 20% of the gross tax increment allocated to the Former Agency from the Project Area, i.e., the “Housing Set-Aside,” in the Former Agency’s Low and Moderate Income Housing Fund, to be expended for low and moderate income housing purposes. Generally, the Former Agency was authorized to use the Housing Set-Aside to pay debt service on bonds solely to the extent that the proceeds of such bonds were used to finance or refinance low and moderate income housing projects. In contrast, under the Redevelopment Law, the Former Agency was authorized to use the portion of tax increment that was not part of the Housing Set-Aside (the “Non-Housing Portion”) to pay debt service on all bonds and other indebtedness of the Former Agency incurred to finance or refinance redevelopment projects for the Project Area, subject to limitations set forth in the indentures or other governing documents.
The Dissolution Act has eliminated the Low and Moderate Income Housing Fund and the requirement to deposit the Housing Set-Aside into such fund. The Redevelopment Property Tax Trust Fund flow of funds under the Dissolution Act makes no distinction between obligations that were, in whole or in part, secured by and payable from the Housing Set-Aside and obligations that were solely secured by and payable from the NonHousing Portion. In effect, after the Former Agency’s dissolution, all of the Successor Agency’s outstanding obligations are paid from Redevelopment Property Tax Trust Fund disbursements without distinction between obligations related to housing and non-housing projects.
Recognized Obligation Payment Schedule
On or before each February 1, with respect to each fiscal year, the Dissolution Act requires successor agencies to prepare and approve, and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as such term is defined in the Dissolution Act) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. As defined in the Dissolution Act, “enforceable obligation” includes bonds, including the required debt service, reserve set-asides and any other payments required under an indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency, as well as other obligations such as loans, judgments or settlements against the former redevelopment agency, any legally binding and enforceable agreement that is not otherwise void as violating the debt limit or public policy, contracts necessary for the administration or operation of the successor agency, and amounts borrowed from the Low and Moderate Income Housing Fund. A reserve may be included on the Recognized Obligation Payment Schedule and held by the successor agency when required by the bond indenture or when the next property tax allocation will be insufficient to pay all obligations due under the provisions of the bond for the next payment due in the following half of the calendar year.
Under the Dissolution Act, the categories of sources of payments for enforceable obligations listed on a Recognized Obligation Payment Schedule are the following: (i) the Low and Moderate Income Housing Fund; (ii) bond proceeds; (iii) reserve balances; (iv) administrative cost allowance; (v) the Redevelopment Property Tax Trust Fund (but only to the extent that no other funding source is available or when payment from property tax revenues is required by an enforceable obligation or otherwise required under the Dissolution Act); or (vi) other revenue sources (including rents, concessions, asset sale proceeds, interest earnings, and any other revenues derived from the former redevelopment agency, as approved by the oversight board).
The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid, only those payments listed in the Recognized Obligation Payment Schedule may be made by the Successor Agency from the funds specified in the Recognized Obligation Payment Schedule. Each annual Recognized Obligation Payment Schedule may be amended once, provided that (i) the Successor Agency 16 4887-4047-9672v4/200456-0005
submits the amendment to DOF no later than October 1, (ii) the Oversight Board makes a finding that the amendment is necessary for the payment of approved enforceable obligations during the second half of the Recognized Obligation Payment Schedule period (from January 1 to June 30, inclusive), and (iii) the Successor Agency may only amend the amount requested for payment of approved enforceable obligations. DOF must notify the Successor Agency and the County Auditor-Controller as to whether the Successor Agency’s requested amendment is approved at least 15 days before the January 2 property tax distribution.
The Recognized Obligation Payment Schedule must be submitted by the Successor Agency, after approval by the Oversight Board, to the County Administrative Officer, the County Auditor-Controller, the DOF and the State Controller by February 1 in each year with respect to the Successor Agency’s payment obligations during the next fiscal year. If the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule by such deadline, the City will be subject to a civil penalty equal to $10,000 per day for every day that the schedule is not submitted. Additionally, the Successor Agency’s administrative cost allowance will be reduced by 25% for any fiscal year for which the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule within 10 days of the February 1 deadline.
If the Successor Agency fails to submit a Recognized Obligation Payment Schedule by the February 1 deadline, any creditor of the Successor Agency or the DOF or any affected taxing entity shall have standing to, and may request a writ of mandate to, require the Successor Agency to immediately perform this duty. The Successor Agency has submitted each prior Recognized Obligation Payment Schedule on or before the statutory deadline.
For additional information regarding procedures under the Dissolution Act relating to late Recognized Obligation Payment Schedules and implications thereof on the 2024 Bonds, see the caption “RISK FACTORS— Recognized Obligation Payment Schedule.”
With respect to each Recognized Obligation Payment Schedule submitted by the Successor Agency, the Dissolution Act requires the DOF to make a determination of the enforceable obligations and the amounts and funding sources available to pay approved enforceable obligations no later than April 15. Within five business days of the determination by the DOF, the Successor Agency may request additional review by the DOF and an opportunity to meet and confer on disputed items, if any. The DOF will notify the Successor Agency and the County Auditor-Controller as to the outcome of its review at least 15 days before the June 1 property tax distribution date preceding the applicable Recognized Obligation Payment Schedule period. Additionally, the County Auditor-Controller may review a submitted Recognized Obligation Payment Schedule and object to the inclusion of any items that are not demonstrated to be enforceable obligations and may object to the funding source proposed for any items, provided that the County Auditor-Controller must provide notice of any such objections to the Successor Agency, the Oversight Board and the DOF at least 60 days prior to the next property tax distribution date.
See the caption “—Last and Final Recognized Obligation Payment Schedule” below for a description of the Last and Final Recognized Obligation Payment Schedule (a “Last and Final ROPS”) authorized by the Dissolution Act to be filed pursuant to SB 107. The Successor Agency does not currently plan to file a Last and Final ROPS.
The Dissolution Act provides that the scheduled payments on bonds issued by a successor agency with the approval of the oversight board and DOF shall be listed in the Recognized Obligation Payment Schedule and shall not be subject to further review and approval by DOF or the State Controller. In order to ensure the timely payment of debt service on the 2024 Bonds, the Successor Agency covenants in the Indenture to request all of the debt service coming due in a calendar year from the moneys to be distributed from the RPTTF on January 2 during such calendar year. Accordingly, the Indenture provides that, on or before each February 1 (or at such earlier time as may be required by the Dissolution Act), for so long as any Bonds are outstanding, the Successor Agency will submit an Oversight Board-approved Recognized Obligation Payment Schedule to DOF and to the County Auditor-Controller that will include, from the first Pledged Tax Revenues distributed to the Successor Agency on each January 2 Redevelopment Property Tax Trust Fund distribution date (subject to the Senior Payments, as provided in the Indenture): (i) all debt service due on all Outstanding 2024 Bonds, any Parity Debt and the Subordinate Bonds coming due during such calendar year, as well as all amounts due and owing to the 17 4887-4047-9672v4/200456-0005
2024 Insurer or to any other Insurer, and (ii) any amount required to cure any deficiency in the Reserve Account pursuant to the Indenture or a reserve account established under any Parity Debt Instrument (including any amounts required due to a draw on any Qualified Reserve Account Credit Instrument (including the 2024 Reserve Policy) as well as all amounts due and owing to the 2024 Insurer or to any other Insurer) or any reserve account established in connection with the Subordinate Bonds.
In addition, the Successor Agency covenants in the Indenture that it will, on or before December 1 of each year, file a Notice of Insufficiency with the County Auditor-Controller if the amount of Tax Revenues available to the Successor Agency from the Redevelopment Property Tax Trust Fund for transfer to the Redevelopment Obligation Retirement Fund on the upcoming January 2 is insufficient to fully fund all required amounts payable from the Redevelopment Obligation Retirement Fund during the next succeeding Semiannual Period. The Successor Agency covenants in the Indenture that, on or before May 1 of each year, it will file a Notice of Insufficiency with the County Auditor-Controller if the amount of Tax Revenues available to the Successor Agency from the Redevelopment Property Tax Trust Fund for transfer to the Redevelopment Obligation Retirement Fund on the upcoming July 1 is insufficient to fully fund all required amounts payable from the Redevelopment Obligation Retirement Fund during the next succeeding Semiannual Period.
The Successor Agency covenants in the Indenture that it will comply with the requirements of the Dissolution Act, including without limitation to file all required statements and hold all public hearings required under the Dissolution Act to assure compliance by the Successor Agency with its covenants under the Indenture.
See Appendix B.
Last and Final Recognized Obligation Payment Schedule
SB 107 amended the Dissolution Act to permit a successor agency to submit a Last and Final ROPS for approval by the oversight board and DOF if: (i) the successor agency’s only remaining debt is administrative costs and payments pursuant to enforceable obligations with defined payment schedules, (ii) all remaining obligations have been previously listed on a Recognized Obligation Payment Schedule and approved by DOF, and (iii) the successor agency is not a party to outstanding or unresolved litigation. The Last and Final ROPS must list the remaining enforceable obligations of the successor agency in the following order: (A) enforceable obligations to be funded from the Redevelopment Property Tax Trust Fund, (B) enforceable obligations to be funded from bond proceeds or other legally or contractually dedicated or restricted funding sources, and (C) loans or deferrals authorized for repayment to the city that created the redevelopment agency or the successor to the former redevelopment agency’s housing functions and assets. The Last and Final ROPS must also include the total outstanding obligation and a schedule of remaining payments for each enforceable obligation described in (A) and (B) above, and the total outstanding obligation and an interest rate of 4%, for any loans or deferrals listed pursuant to (C) above. The Last and Final ROPS shall also establish the maximum amount of Redevelopment Property Tax Trust Funds to be distributed to the successor agency for each remaining fiscal year until all obligations have been fully paid. DOF approval is required for any Last and Final ROPS to become effective. The county auditor-controller shall also review the Last and Final ROPS and provide any objection to the inclusion of any items or amounts to DOF.
Successor agencies may only amend an approved Last and Final ROPS twice. Approval by the oversight board and DOF is required for any amendment to a Last and Final ROPS to become effective. The Dissolution Act provides DOF with 100 days to approve or deny an amendment to a Last and Final ROPS. Each amended Last and Final ROPS approved by DOF shall become effective in the subsequent Redevelopment Property Tax Trust Fund distribution period. If an amended Last and Final ROPS is approved less than 15 days before the date of the property tax distribution, the Last and Final ROPS shall not be effective until the subsequent Redevelopment Property Tax Trust Fund distribution period.
Any revenues, interest, and earnings of the successor agency, including proceeds from the disposition of real property, that are not authorized for use pursuant to the approved Last and Final ROPS shall be remitted to the county auditor-controller for distribution to the affected taxing entities. A successor agency shall not 18 4887-4047-9672v4/200456-0005
expend more than the amount approved for each enforceable obligation listed on the approved Last and Final ROPS. The county auditor-controller shall no longer distribute property tax to the successor agency’s Redevelopment Property Tax Trust Fund once the aggregate amount of property tax allocated to the successor agency equals the total outstanding obligation approved in the Last and Final ROPS. Commencing on the effective date of the approved Last and Final ROPS, the successor agency shall not prepare or transmit annual Recognized Obligation Payment Schedules.
After the Last and Final ROPS is approved by DOF, the county auditor-controller shall continue to allocate moneys in the successor agency’s Redevelopment Property Tax Trust Fund pursuant to Section 34183 of the Dissolution Act; however, the county auditor-controller shall allocate such moneys in each fiscal period, after deducting the county auditor-controller’s administrative costs, in the following order of priority: (A) passthrough payments pursuant to Section 34183(a)(1) of the Dissolution Act, (B) scheduled debt service payments on tax allocation bonds listed and approved in the Last and Final ROPS, (C) scheduled payments on revenue bonds listed and approved in the Last and Final ROPS, but only to the extent the revenues pledged for them are insufficient to make the payments and only if the successor agency’s tax increment revenues were also pledged for the repayment of bonds, (D) scheduled payments for debts and obligations listed and approved in the Last and Final ROPS to be paid from the Redevelopment Property Tax Trust Fund, (E) payments listed and approved on the Last and Final ROPS that were authorized but unfunded in prior periods, (F) repayment of loans and deferrals to the city that created the redevelopment agency or the successor to the former redevelopment agency’s housing functions and assets that are listed and approved on the Last and Final ROPS, and (G) any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments and transfers described in (A) to (F), above, shall be distributed to taxing entities in accordance with Section 34183(a)(4) of the Dissolution Act.
If the successor agency send a Notice of Insufficiency to the county auditor-controller stating that the total available amounts in the Redevelopment Property Tax Trust Fund will be insufficient to fund the successor agency’s current or future fiscal year obligations, and if the county auditor-controller concurs that there are insufficient funds to pay the required obligations, the county auditor-controller may divert subordinated passthrough payments to the successor agency pursuant to Section 34183(b) of the Dissolution Act. See the caption “—Tax Increment Financing.”
The Successor Agency does not currently expect to file a Last and Final ROPS. Further, the Successor Agency has covenanted in the Indenture not to submit to the Oversight Board or DOF a request for the final amendment permitted for its Last and Final ROPS without the prior written consent of the 2024 Insurer unless all amounts that could become due to the 2024 Insurer are included as a line item on the Last and Final ROPS, as amended.
Pass-Through Agreements
Prior to January 1, 1994, affected taxing entities had the opportunity to negotiate pass-through agreements with a redevelopment agency to alleviate financial burden or detriment caused by the establishment of a project area. Accordingly, the Former Agency entered into agreements for allocation and distribution of tax increment funds with the following entities: the County, the Tulare County Flood Control District (the “FCD”), the Tulare County Air Pollution Control District (the “APCD”), the Alta Cemetery District (the “ACD”), the Dinuba Memorial District (the “DMD”), the Delta Vector Control District (the “DVCD”), the Tulare County Free Library (the “Library”) and Dinuba Elementary School District (the “School District”), as described below.
However, the Successor Agency cannot guarantee that the process prescribed by the Dissolution Act of administering the Pledged Tax Revenues and any subordinations provided in the Pass-Through Agreements will effectively result in adequate Pledged Tax Revenues for the payment of principal and interest on the 2024 Bonds when due. See “— Tax Increment Financing” and “– Recognized Obligation Payment Schedule.” City of Dinuba Redevelopment Project. Under a March 12, 1985 agreement, the County, the FCD and the APCD are to receive the following percentages of their respective shares of Tax Revenues received by the 19 4887-4047-9672v4/200456-0005
Former Agency, as succeed by the Successor Agency, from the territory comprising the City of Dinuba Redevelopment Project:
July 1, 1995 - June 30, 2000 25%
July 1, 2000 - June 30, 2010 50%
July 1, 2010 - June 30, 2020 75%
July 1, 2020 and thereafter 100%
In the same agreement, the Former Agency and the City agreed not to amend the Redevelopment Plan for the City of Dinuba Redevelopment Project to add any new area. This provision was modified on November 26, 1991 (see below) to permit the merger of project areas.
Pursuant to March 12, 1985 agreements with each of the ACD and the DMD, commencing July 1, 1999 the Former Agency, as succeeded by the Successor Agency, pays to each district an amount equal to 50% of the respective district’s share of tax revenues received by the Successor Agency with respect to the territory comprising the City of Dinuba Redevelopment Project. As a party to these agreements, the County AuditorController agrees to pay the amounts due to the districts under the agreement directly to each district, rather than having tax increment transferred by the Controller to the Successor Agency prior to payment to the districts.
Dinuba Redevelopment Project No. 2. With respect to Tax Revenues derived from the original territory of Dinuba Redevelopment Project No. 2, under an August 1, 1989 agreement between the Former Agency, as succeeded by the Successor Agency, and the County, the FCD, the APCD and the Library, the County, the FCD, the APCD and the Library are to receive a percentage of their respective shares of Tax Revenues according to the following schedule:
(a) Beginning in the fiscal year when the combined County, FCD, APCD and Library share is greater than $40,000 but less than $200,001, the Successor Agency shall pay 25% of that portion over $40,000;
(b) Beginning in the fiscal year when the combined share is greater than $200,000 but less than $300,001, the Prior shall pay 50% of that portion over $200,000 in addition to the amount above in (a);
(c) Beginning in the fiscal year when the combined share is greater than $300,000 but less than $400,001, the Successor Agency shall pay 75% of that portion over $300,000 in addition to the amounts above in (a) and (b); and
(d) Beginning in the fiscal year when the combined share is greater than $400,000, the Successor Agency shall pay 100% of that portion over $400,000 in addition to the amounts above in (a), (b) and (c).
Based on information provided by the Successor Agency, the Fiscal Consultant has determined that the combined shares of the County, the FCD, the APCD, and the Library have reached an amount requiring payments in the foregoing paragraphs (a) and (b).
Pursuant to a June 21, 1989 agreement with the DVCD, the Former Agency, as succeeded by the Successor Agency, is to pay to the district 100% of its share of Tax Revenues with respect to the original territory of Dinuba Redevelopment Project No. 2.
Project No. 2 Added Territory. Under a June 26, 1990 agreement (the “1990 County Agreement”), the County, the FCD, the APCD, and the Library are to receive 100% of their share of Tax Revenues derived from the territory which was added by Amendment No. 1 to the Redevelopment Plan for Dinuba Redevelopment Project No. 2. In addition, they are to receive 100% of their share of Tax Revenues received by the Successor 20 4887-4047-9672v4/200456-0005
Agency from all areas under the Redevelopment Project No. 2 Redevelopment Plan, including Amendment No. 1, in excess of $90,000,000. As of June 30, 2023, the Successor Agency has received $14,577,054 in Tax Revenues from the original territory of Dinuba Redevelopment Project No. 2 and $29,130,487 in Tax Revenues from the Amendment No. 2 Added Territory, for a combined total of $43,707,541 in Tax Revenues from the Dinuba Redevelopment Project No. 2. The 1990 County Agreement further provides that in the event of a substantial reduction in Tax Revenues because of unforeseen circumstances, the amounts owed to the County entities thereunder may be applied to the repayment of bonded indebtedness to avoid a default thereon. Any portion of the amounts payable to the County under the 1990 County Agreement that is applied by the Successor Agency in this manner must be repaid to the County, together with interest thereon at a rate equal to the interest rate on such Agency bonded indebtedness from the first available Tax Revenues in excess of the Successor Agency’s debt service on such bonded indebtedness. As a result of the terms of this 1990 County Agreement, the payments due to taxing agencies thereunder are subordinate to the payment of debt service on the 2024 Bonds and Existing Parity Debt.
Pursuant to a September 4, 1990 agreement with the School District, the Former Agency, as succeeded by the Successor Agency, will pay into a special fund each year an amount equal to the School District’s share of Tax Revenues derived from the annual inflation 2% (or less) inflation adjustment to taxable property valuation derived from the portion of the Amendment No. 1 Added Territory that is attributed to the School District.
Moneys in this fund will be used by the Successor Agency to pay for capital projects designated by the School District and any balance in the fund at the end of the term of the Redevelopment Plan will be paid to the School District. The obligations of the Successor Agency under this agreement are subordinate to its bonded indebtedness, including the 2024 Bonds.
1991 Agreement. On November 26, 1991, the Former Agency, as succeeded by the Successor Agency, and the City entered into an agreement with the County, the Library, the FCD and the County Auditor-Controller, which modified the 1985 Pass-Through Agreement to permit the merger of the two redevelopment projects. This agreement also provided for the payment to the County (as successor-in-interest to the APCD) of all amounts due to the APCD under the foregoing Pass-Through Agreements with County taxing entities, as well as property tax administration fees attributable to the Pass-Through Agreements.
The Prior Agency and the City did not enter into any additional pass-through agreements with taxing agencies in connection with the portion of the Project Area added by Ordinance No. 93-11 adopted on November 23, 1993.
Except for the Pass-Through Agreement with the School District, which is payable on a subordinate basis to the 2024 Bonds, the Existing Parity Debt and the Subordinate Bonds, and the 1990 County Agreement, which is payable on a subordinate basis to the 2024 Bonds, the Existing Parity Debt and the Subordinate Bonds, only to the extent of substantial reduction in Tax Revenues because of unforeseen circumstances, any payments made by the Successor Agency to satisfy the Pass-Through Agreements are senior to the Pledged Tax Revenues available to pay debt service on the 2024 Bonds, the Existing Parity Debt and the Subordinate Bonds. As defined in the Indenture, “Pledged Tax Revenues” exclude amounts required to be paid to taxing agencies pursuant to these “Senior Pass-Through Agreements.” The Successor Agency is also permitted under the Pass-Through Agreements to incur other obligations which are subordinate to the Bonds, the Existing Parity Debt and the Subordinate Bonds, in addition to the issuance of other subordinate debt, from time to time.
Under the Dissolution Act, the Successor Agency is no longer responsible for the payment of passthrough amounts under the Pass-Through Agreements. Instead, the Dissolution Act requires the County AuditorController to distribute from the Redevelopment Property Tax Trust Fund amounts required to be distributed under the Pass-Through Agreements to the taxing entities for each six-month period before amounts are distributed by the County Auditor-Controller from the Redevelopment Property Tax Trust Fund to the Successor Agency’s Redevelopment Obligation Retirement Fund each January 2 and June 1. If, however, (a) the Successor 21 4887-4047-9672v4/200456-0005
Agency determines and reports, no later than December 1 or May 1, as applicable (i.e., by May 1, 2025 with respect to the Recognized Obligation Payment Schedule for July 1, 2025 through December 31, 2025), that the total amount available to the Successor Agency from the Redevelopment Property Tax Trust Fund allocation to the Successor Agency’s Redevelopment Obligation Retirement Fund, from other funds transferred from the Former Agency, and from funds that have or will become available through asset sales and all redevelopment operations, are insufficient to fund the payment of pass-through obligations, for Successor Agency enforceable obligations listed on the Recognized Obligation Payment Schedule, and for the Successor Agency’s administrative cost allowance, and (b) the State Controller concurs that there are insufficient funds to pay required debt service, the Dissolution Act provides for certain adjustments to be made to the estimated distributions. The Successor Agency cannot guarantee that the process prescribed by the Dissolution Act of administering the Pledged Tax Revenues and the subordinations provided in the Pass-Through Agreements will effectively result in adequate Pledged Tax Revenues for the payment of principal and interest on the Bonds when due. See “—Tax Increment Financing” and “– Recognized Obligation Payment Schedule.” See “PLEDGED TAX REVENUES—Projected Taxable Valuation and Pledged Tax Revenues” herein.
See Table 5 under the caption “PLEDGED TAX REVENUES—Projected Pledged Tax Revenues” and the Fiscal Consultant Report attached as Appendix A for more information regarding the Pass-Through Agreements.
Statutory Pass-Through Amounts
Assembly Bill 1290 (Chapter 942, Statutes of 1993) (“AB 1290”), effective January 1, 1994, eliminated the statutory authority for negotiated pass-through agreements and provided a formula for mandatory tax sharing, applicable to projects adopted after January 1, 1994 or amended after that date to add territory or make certain other amendments. These payments, which are to begin the fiscal year following the year a redevelopment plan was adopted (if after January 1, 1994) or the fiscal year following the year that a redevelopment plan’s original plan limitations would have taken effect (in the case of pre-1994 redevelopment plans), are calculated using the increase in revenue above the amount of revenue generated by the project area in the year that the redevelopment plan was adopted or the former limit would have been reached, as applicable. Under the Dissolution Act, in particular Section 34183, the County Auditor-Controller is obligated to remit these Statutory Pass-Through Amounts to the affected taxing entities from the Successor Agency’s RPTTF on each January 2 and June 1 RPTTF distribution date.
As further described herein under the caption “THE PROJECT AREA,” the City amended the Project Area several times after January 1, 1994. Accordingly, the Successor Agency is required to pay the Statutory Pass-Through Amounts to affected taxing agencies with respect to the Project Area. The Statutory Pass-Through Amounts are determined by specific formulas under the Law. These payment obligations of the Successor Agency to affected taxing entities are administered by the County Auditor-Controller under the Dissolution Act.
Generally speaking, under the Law the Statutory Pass-Through Amounts are calculated as follows:
“Tier 1.” following the adoption of the project area or the expiration of the amended time limit, as applicable, and thereafter, 25% of tax increment revenues (after deducting the Housing Set-Aside amount); plus,
“Tier 2.” for the eleventh year following the triggering event and thereafter, 21% of revenues in excess of tenth year revenue (after deducting the Housing Set-Aside amount); plus, “Tier 3.” for the thirty-first year following the triggering event and thereafter, 14% of revenues in excess of thirtieth year revenues (after deducting the Housing Set-Aside amount).
The payments of the Statutory Pass-Through Amounts to the affected taxing entities are allocated among each affected taxing entity in proportion to the share of property taxes each affected taxing entity received in the 22 4887-4047-9672v4/200456-0005
year funds are allocated. As indicated, amounts specified as payable to affected taxing entities are computed after deducting the Housing Set-Aside amounts even though the Successor Agency no longer deposits such amounts into the Low and Moderate Income Housing Fund under the Dissolution Act.
The Successor Agency has not undertaken the requisite procedures to subordinate the Statutory PassThrough Amounts to the 2024 Bonds and Existing Parity Debt and, therefore, the pledge of Pledged Tax Revenues in favor of the 2024 Bonds and Existing Prity Debt is subordinate to the payment of Statutory PassThrough Amounts.
See Table 5 under the caption “PLEDGED TAX REVENUES—Projected Pledged Tax Revenues” and the Fiscal Consultant Report attached as Appendix A for more information regarding the Statutory Pass-Through Amounts.
33676 Amounts
Pursuant to a resolution adopted by the ACD under former Section 33676 of the Law, the Former Agency, as succeeded by the Successor Agency, pays the district 100% of the district’s share of tax increment attributable to increases in the tax rate imposed for the benefit of the district, as well as 100% of the annual inflation 2% (or less) inflation adjustment to taxable property valuation derived from the portion of the original territory of Dinuba Redevelopment Project No. 2 that is attributed to the district.
The Successor Agency has not undertaken the requisite procedures to subordinate the 33676 Amounts to the 2024 Bonds and Existing Parity Debt and, therefore, the pledge of Pledged Tax Revenues in favor of the 2024 Bonds and Existing Prity Debt is subordinate to the payment of 33676 Amounts.
See Table 5 under the caption “PLEDGED TAX REVENUES—Projected Pledged Tax Revenues” and the Fiscal Consultant Report attached as Appendix A for more information regarding the 33676 Amounts.
Issuance of Additional Indebtedness
No Additional Senior Obligations. Under the Indenture, the Successor Agency has covenanted that it will not issue additional bonds or incur additional obligations that are payable from Pledged Tax Revenues on a senior basis to the 2024 Bonds and Parity Debt. There are currently no bonds or obligations that are payable from Tax Revenues on a basis senior to the 2024 Bonds and Parity Debt.
Additional Parity Bonds. Section 34177.5(a) of the Dissolution Act presently permits successor agencies to issue bonds or incur other indebtedness secured by property tax revenues comprised of former tax increment revenues required by the Dissolution Act to be deposited into the respective Redevelopment Property Tax Trust Fund for the applicable successor agency under limited circumstances, including to provide savings to the successor agency, provided that (A) the total interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (B) the principal amount of the refunding bonds or the indebtedness will not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance. If the foregoing conditions are satisfied, the initial principal amount of the refunding bonds or indebtedness may be greater than the outstanding principal amount of the bonds or other indebtedness to be refunded. The successor agency may pledge to the refunding bonds or other indebtedness the revenues pledged to the bonds or other indebtedness being refunded, having the same lien priority as the pledge of the bonds or other obligations to be refunded.
In addition to the 2024 Bonds and Existing Parity Debt, the Successor Agency may issue Additional Parity Bonds to refund any outstanding 2024 Bonds or Parity Debt for savings, in such principal amount as will 23 4887-4047-9672v4/200456-0005
be determined by the Successor Agency. The Successor Agency may issue and deliver any such Additional Parity Bonds subject to the following conditions precedent:
(a) No Event of Default under the Indenture or an event of default under any Parity Debt Instrument will have occurred and be continuing unless cured by the issuance of such Additional Parity Bonds; (b) The Additional Parity Bonds must be issued to provide savings to the Successor Agency in compliance with Health and Safety Code Section 34177.5(a); (c) A Supplemental Indenture or Parity Debt Instrument must be adopted which must (i) state the applicable reserve requirement and the amount, if any, to be deposited from the proceeds of sale of such Additional Parity Bonds in a separate account of the Reserve Account or other debt service reserve account or fund as provided in such Supplemental Indenture or Parity Debt Instrument, to be held as separate security for such series of Additional Parity Bonds; (ii) designate accounts and subaccounts within the Debt Service Fund, including within the Reserve Account if applicable, to be used in connection with such Additional Parity Bonds; and (iii) set forth such other provisions that are appropriate or necessary and are not inconsistent with the provisions of the Indenture;
(d) Such Supplemental Indenture or Parity Debt Instrument is not permitted to provide as a remedy for any event of default thereunder a declaration that all of such Additional Parity Bonds then outstanding, and the interest accrued thereon, is due and payable immediately; and (e) The Successor Agency must deliver to the Trustee a Written Certificate of the Successor Agency certifying that the conditions precedent to the issuance of such Additional Parity Bonds set forth in the Indenture have been satisfied.
Subordinate Obligations. The Successor Agency may have various enforceable obligations that are, or will be, listed on the Successor Agency’s Recognized Obligation Payment Schedules and paid from moneys deposited in the Successor Agency’s Redevelopment Property Tax Trust Fund from time to time. The Successor Agency has determined that these obligations are either subordinate to the 2024 Bonds and Existing Parity Debt or not secured by a pledge of Pledged Tax Revenues. Nothing in the Indenture prevents the Successor Agency from issuing additional bonds or incurring other loans, advances or indebtedness payable from Pledged Tax Revenues on a subordinate basis to the 2024 Bonds. Currently, the Subordinate Bonds are the Successor Agency’s only indebtedness secured by Pledged Tax Revenues on a subordinate basis to the 2024 Bonds and Existing Parity Debt.
BOND INSURANCE
[TO COME]
PROPERTY TAXATION IN CALIFORNIA
Property Tax Collection Procedures
Classification. In the State, property which is subject to ad valorem taxes is classified as “secured” or “unsecured.” Secured and unsecured property is entered on separate parts of the assessment roll maintained by county assessors. The secured classification includes property on which any property tax levied by a county becomes a lien on that property. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens on the secured property arising pursuant to State law, regardless of the time of the creation of other liens. See the caption “RISK FACTORS—Bankruptcy and Foreclosure” for certain limitations on the priority of secured tax liens under federal law, however. 24 4887-4047-9672v4/200456-0005
Generally, ad valorem taxes are collected by a county for the benefit of the various taxing agencies (cities, schools and special districts) that share in the ad valorem tax (each, a taxing entity) and successor agencies eligible to receive distributions from the respective Redevelopment Property Tax Trust Fund.
Collections. The method of collecting delinquent taxes is substantially different for secured and unsecured property. The exclusive means of enforcing the payment of delinquent taxes with respect to property on the secured roll is the sale of the property securing the taxes to the State for the amount of taxes which are delinquent. Counties have four ways of collecting unsecured personal property taxes: (i) initiating a civil action against the taxpayer; (ii) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (iii) filing a certificate of delinquency for record in the county recorder’s office to obtain a lien on certain property of the taxpayer; and (iv) seizing and selling personal property, improvements or possessory interests belonging or assessed to the assessee.
Penalty. A 10% penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, property on the secured roll on which taxes are delinquent is declared in default by operation of law and declaration of the tax collector on or about June 30 of each fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1.5% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the county tax collector. A 10% penalty also applies to delinquent taxes with respect to property on the unsecured roll, and further, an additional penalty of 1.5% per month accrues with respect to such taxes beginning on varying dates related to the tax bill mailing date.
Delinquencies. The valuation of property is determined as of the January 1 lien date as equalized in August of each year and equal installments of taxes levied upon secured property become delinquent on the following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent August 31. The County has not adopted the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (known as the Teeter Plan), as provided for in Section 4701 et seq. of the Revenue and Taxation Code of the State. Accordingly, the payment of property taxes (and the associated Tax Revenues) is subject to delinquencies.
Supplemental Assessments. California Revenue and Taxation Code Section 75.70 provides for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Prior to the enactment of this law, the assessment of such changes was permitted only as of the next tax lien date following the change, which delayed the realization of increased property taxes from the new assessments for up to 14 months. Revenue and Taxation Code Section 75.70 provides increased revenue to the Redevelopment Property Tax Trust Fund to the extent that supplemental assessments of new construction or changes of ownership occur within the boundaries of the Project Area subsequent to the January 1 lien date. To the extent that such supplemental assessments occur within the Project Area, Tax Revenues may increase.
However, because supplemental assessments cannot be accurately projected, no provision has been made by the Fiscal Consultant to reflect the impact of supplemental assessments on Tax Revenues. See Appendix A.
Property Tax Administrative Costs. In 1990, the State Legislature enacted Senate Bill (“SB”) 2557 (Chapter 466, Statutes of 1990) which allows counties to charge for the cost of assessing, collecting and allocating property tax revenues to local government jurisdictions in proportion to the tax-derived revenues allocated to each. SB 1559 (Chapter 697, Statutes of 1992) explicitly includes redevelopment agencies among the jurisdictions which are subject to such charges. In addition, Sections 34182 and 34183(a) of the Dissolution Act allow administrative costs of the County Auditor-Controller for the cost of administering the provisions of the Dissolution Act, as well as the foregoing SB 1559 amounts, to be deducted from Tax Revenues. Over the past five years, the County’s total administrative charge for the Project Area, deducted from the Redevelopment Property Tax Trust Fund allocations to the Successor Agency, amounted to approximately 2.59% of the total gross tax revenue allocation to the Redevelopment Property Tax Trust Fund for such period. The Fiscal Consultant assumes that the County property tax administration will continue to be annually charged at this percentage factor to the gross tax revenue generated by the Project Area in subsequent fiscal years. See the 25 4887-4047-9672v4/200456-0005
projections set forth in the Fiscal Consultant Report attached as Appendix A and under the caption “PLEDGED TAX REVENUES—Projected Pledged Tax Revenues” herein.
Pass-Through Agreements. Prior to 1994, under the Redevelopment Law, a redevelopment agency could enter into an agreement to pay tax increment revenues to any taxing agency that has territory located within a redevelopment project in an amount which in the redevelopment agency’s determination was appropriate to alleviate any financial burden or detriment caused by the redevelopment project. Such agreements normally provide for payment or pass-through of tax increment revenue directed to the affected taxing agency, and, therefore, are commonly referred to as pass-through agreements or tax sharing agreements. The Former Agency entered into several such tax-sharing agreement with taxing agencies. See the caption “SECURITY FOR THE 2024 BONDS—Pass-Through Agreements” and the Fiscal Consultant Report attached as Appendix A for more information with respect to the Pass-Through Agreements. Also see the caption “SECURITY FOR THE 2024 BONDS—Tax Increment Financing—Tax Sharing.”
Statutory Pass-Through Amounts. The payment of Statutory Pass-Through Amounts results from:
(i) redevelopment plan amendments which add territory in existing project areas on or after January 1, 1994; and (ii) redevelopment plan amendments which eliminate, extend or increase one or more limitations within a redevelopment plan (such as the removal of the time limit on the establishment of loans, advances and indebtedness). The calculation of the amount due to affected taxing entities is described in Sections 33607.5 and 33607.7 of the Redevelopment Law. See the caption “SECURITY FOR THE 2024 BONDS—Statutory Pass-Through Amounts” for a discussion of the Successor Agency’s obligation to pay Statutory Pass-Through Amounts to affected taxing agencies. Also see the caption “SECURITY FOR THE 2024 BONDS—Tax Increment Financing—Tax Sharing.”
Section 33676 Election. Prior to the enactment of AB 1290, redevelopment project areas adopted between January 1, 1985 and January 1, 1994 were subject to payments to schools and to other affected taxing agencies that elected to receive tax revenue payments set forth under Section 33676 of the Law (defined above as “33676 Amounts”). The annual payments represent that portion of property taxes that are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110.1 of the Revenue and Taxation Code (and referred to as the 2% inflation allocation). See the caption “SECURITY FOR THE 2024 BONDS—33676 Amounts” for a discussion of the Successor Agency’s obligation to pay 33676 Amounts. Also see the caption “SECURITY FOR THE 2024 BONDS—Tax Increment Financing—Tax Sharing.” Recognized Obligation Payment Schedule. The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid, only those payments listed in the Recognized Obligation Payment Schedule may be made by the Successor Agency from the funds specified in the Recognized Obligation Payment Schedule. Before each February 1, with respect to the following fiscal year, the Dissolution Act requires successor agencies to prepare and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as defined in the Dissolution Act) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Tax Revenues will not be distributed from the Redevelopment Property Tax Trust Fund by the County Auditor-Controller to the Successor Agency’s Redevelopment Obligation Retirement Fund without a duly approved and effective Recognized Obligation Payment Schedule obtained in sufficient time prior to each June 1 property tax distribution date. See the caption “SECURITY FOR THE 2024 BONDS—Recognized Obligation Payment Schedule” and “RISK FACTORS— Recognized Obligation Payment Schedule.” See also “SECURITY FOR THE 2024 BONDS—Last and Final Recognized Obligation Payment Schedule” for a description of the Last and Final ROPS authorized by the Dissolution Act pursuant to SB 107.
Unitary Property
Assembly Bill (“AB”) 2890 (Statutes of 1986, Chapter 1457) provides that, commencing with fiscal year 1988-89, assessed value derived from State-assessed unitary property (consisting mostly of operational 26 4887-4047-9672v4/200456-0005
property owned by utility companies) is to be allocated county-wide as follows: (i) each tax rate area will receive the same amount from each assessed utility received in the previous fiscal year unless the applicable countywide values are insufficient to do so, in which case values will be allocated to each tax rate area on a pro rata basis; and (ii) if values to be allocated are greater than in the previous fiscal year, each tax rate area will receive a pro rata share of the increase from each assessed utility according to a specified formula. Additionally, the lien date on State-assessed property was changed from March 1 to January 1.
AB 454 (Statutes of 1987, Chapter 921) further modified Chapter 1457 regarding the distribution of tax revenues derived from property assessed by the State Board of Equalization. AB 454 provides for the consolidation of all State-assessed property, except for regulated railroad property, into a single tax rate area in each county. AB 454 further provides for a new method of establishing tax rates on State-assessed property and distribution of property tax revenue derived from State-assessed property to taxing jurisdictions within each county in accordance with a new formula. Railroads will continue to be assessed and revenues allocated to all tax rate areas where railroad property is located. The intent of AB 2890 and AB 454 is to provide redevelopment agencies with their appropriate share of revenue generated from property assessed by the State Board of Equalization.
Unitary tax revenues are pledged to payment of the 2024 Bonds; however, historically, such amounts have been de minimis.
Article XIIIA of the State Constitution
On June 6, 1978, State voters approved an amendment (commonly known as Proposition 13 or the Jarvis-Gann Initiative) which added Article XIIIA to the State Constitution. Article XIIIA limits the amount of ad valorem taxes on real property to 1% of “full cash value” of such property, as determined by the county assessor. Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the State fiscal year 1975-76 tax bill under ‘full cash value,’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” Furthermore, the “full cash value” of all real property may be increased to reflect the rate of inflation, as shown by the consumer price index, not to exceed 2% per year, or may be reduced. Each year the State Board of Equalization announces the applicable adjustment factor. Since the adoption of Proposition 13, inflation has, in most years, exceeded 2% and the announced factor has reflected the 2% cap. The changes in the California Consumer Price Index from October of one year and October of the next year are used to determine the adjustment factor for the January assessment date. During the ten previous Fiscal Years, the inflation factor has been less than 2% on five occasions. The table below reflects the inflation adjustment factors for the current Fiscal Year, and the 13 prior Fiscal Years.
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Historical Inflation Adjustment Factors
Fiscal Year Inflation Adj. Factor
2010-11 -0.237%
2011-12 0.753
2012-13 2.000
2013-14 2.000
2014-15 0.454
2015-16 1.998
2016-17 1.525
2017-18 2.000
2018-19 2.000
2019-20 2.000
2020-21 2.000
2021-22 1.036
2022-23 2.000
2023-24 2.000
Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the event of declining property values caused by substantial damage, destruction or other factors, and to provide that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster and in other special circumstances.
Article XIIIA: (i) exempts from the 1% tax limitation taxes to pay debt service on: (a) indebtedness approved by the voters prior to July 1, 1978; or (b) bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition; (ii) requires a vote of two-thirds of the qualified electorate to impose special taxes, or certain additional ad valorem taxes; and (iii) requires the approval of two-thirds of all members of the State Legislature to change any State tax laws resulting in increased tax revenues.
The validity of Article XIIIA has been upheld by both the State Supreme Court and the United States Supreme Court.
In the general election held on November 4, 1986, voters of the State approved two measures, Propositions 58 and 60, which further amended Article XIIIA. Proposition 58 amended Article XIIIA to provide that the terms “purchase” and “change of ownership,” for the purposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of: (1) real property between spouses; and (2) the principal residence and the first $1,000,000 of other property between parents and children. This amendment to Article XIIIA may reduce the rate of growth of local property tax revenues.
Proposition 60 amended Article XIIIA to permit the State Legislature to allow persons over the age of 55 who sell their residence and buy or build another of equal or lesser value within two years in the same county to transfer the old residence assessed value to the new residence. As a result of the State Legislature’s action, the growth of property tax revenues may decline.
Legislation enacted by the State Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. In conformity with this procedure, all taxable property value included in this Official Statement is shown at 100% of assessed value and all general tax rates reflect the $1 per $100 of taxable value (except as noted). Tax rates for voter-approved bonded indebtedness and pension liabilities are also applied to 100% of assessed value. No such tax rate overrides for bonded indebtedness are pledged to the 2024 Bonds.
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Appropriations Limitation – Article XIIIB
On November 6, 1979, State voters approved Proposition 4 (also known as the Gann Initiative), which added Article XIIIB to the State Constitution. Article XIIIB limits the annual appropriations of the State and its political subdivisions to the level of appropriations for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the government entity. The “base year” for establishing such appropriations limit is State fiscal year 1978-79, and the limit is to be adjusted annually to reflect changes in population, consumer prices and certain increases in the cost of services provided by these public agencies.
Section 33678 of the Redevelopment Law provides that the allocation of taxes to a redevelopment agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness is not deemed to be the receipt by an agency of proceeds of taxes levied by or on behalf of an agency within the meaning of Article XIIIB, nor will such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to the limitation of, any other public body within the meaning or for the purpose of the Constitution and laws of the State, including Section 33678 of the Redevelopment Law. The constitutionality of Section 33678 has been upheld in two State appellate court decisions. On the basis of these decisions, the Successor Agency does not believe that it is subject to Article XIIIB and has not adopted an appropriations limit.
Articles XIIIC and XIIID of the State Constitution
At the election held on November 5, 1996, Proposition 218 was passed by the voters of California. The initiative added Articles XIIIC and XIIID to the State Constitution. Provisions in the two articles affect the ability of local government to raise revenues. The 2024 Bonds are secured by sources of revenues that are not subject to limitation by Proposition 218. See the caption “—Propositions 218 and 26.” Proposition 87
On November 8, 1988, the voters of the State approved Proposition 87, which amended Article XVI, Section 16 of the State Constitution to provide that property tax revenue attributable to the imposition of taxes on property within a redevelopment project area for the purpose of paying debt service on certain bonded indebtedness issued by a taxing entity (not the Former Agency or the Successor Agency) and approved by the voters of the taxing entity after January 1, 1989 will be allocated solely to the payment of such indebtedness, and not to redevelopment agencies. SB 107, which became effective on September 22, 2015, amended Section 34183(a)(1) of the Dissolution Act to provide that such debt service override revenues approved by the voters for the purpose of supporting pension programs or capital projects or programs related to the State Water Project that are not pledged to or not needed for debt service on Agency debt will be allocated and paid to the entity that levies the override. No such overrides are pledged to the 2024 Bonds. See “SECURITY FOR THE 2024 BONDS—General.”
Redevelopment Plan Limits
In 1993, the State legislature passed AB 1290, Chapter 942, Statutes 1993, which, among other things, required redevelopment agencies to adopt time limits in each redevelopment plan specifying: (i) the last date to incur debt for a redevelopment project; (ii) the last date to undertake redevelopment activity within a project area; (iii) the last date to collect tax increment revenue from a project area to repay debt; and (iv) a limitation on the number of dollars of taxes that could be allocated to the Former Agency from the applicable Project Area.
See the caption “THE PROJECT AREA.”
SB 107, which became effective September 22, 2015, amended the Dissolution Act to provide that the time limits for receiving property tax revenues and the limitation on the amount of property tax revenues that may be received by the Former Agency and the Successor Agency set forth in the Redevelopment Plan are not effective for purposes of paying the Successor Agency’s enforceable obligations such as the 2024 Bonds.
Accordingly, the projections set forth in this Official Statement and in the Fiscal Consultant Report attached to 29 4887-4047-9672v4/200456-0005
this Official Statement as Appendix A do not take into account the time and financial limitations set forth in the Redevelopment Plan for the Project Area. See the captions “THE PROJECT AREA—General.” Appeals of Assessed Values
Pursuant to State law, a property owner may apply for a reduction of the property tax assessment for such owner’s property by filing a written application, in a form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board.
In the County, a property owner desiring to reduce the assessed value of such owner’s property in any one year must submit an application to the County Assessment Appeals Board (the “Appeals Board”).
Applications for any tax year must be submitted by November 30 of such tax year. Following a review of each application by the staff of the County Assessor’s Office, the staff makes a recommendation to the Appeals Board on each application which has not been rejected for incompleteness or untimeliness or withdrawn. The Appeals Board holds a hearing and either reduces or confirms the assessment. The Appeals Board generally is required to determine the outcome of appeals within two years of each appeal’s filing date. Any reduction in the assessment ultimately granted applies only to the year for which application is made and during which the written application is filed. The assessed value increases to its pre-reduction level for fiscal years following the year for which the reduction application is filed. However, if the taxpayer establishes through proof of comparable values that the property continues to be overvalued (known as “ongoing hardship”), the Assessor has the power to grant a reduction not only for the year for which application was originally made, but also for the then current year as well. Appeals for reduction in the “base year” value of an assessment, which generally must be made within three years of the date of change in ownership or completion of new construction that determined the base year, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter.
Moreover, in the case of any reduction in any one year of assessed value granted for “ongoing hardship” in the then current year, and also in any cases involving stipulated appeals for prior years relating to base year and personal property assessments, the property tax revenues from which Tax Revenues are derived attributable to such properties will be reduced in the then current year. In practice, such a reduced assessment may remain in effect beyond the year in which it is granted. See the caption “THE PROJECT AREA—Assessment Appeals” and Appendix A for information regarding the appeals pending with respect to the top ten property owners within the Project Area.
Proposition 8
Proposition 8, approved in 1978 (California Revenue and Taxation Code Section 51(b)), provides for the assessment of real property at the lesser of its originally determined (base year) full cash value compounded annually by the inflation factor, or its full cash value as of the lien date, taking into account reductions in value due to damage, destruction, obsolescence or other factors causing a decline in market value. Reductions pursuant to Proposition 8 may be initiated by the County Assessor or requested by the property owner, and such reductions apply only to a single tax year.
After a roll reduction is granted pursuant to Proposition 8, the property is reviewed on an annual basis to determine its full cash value and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases must be in accordance with the full cash value of the property and may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA.
The County Assessor has the ability to use Proposition 8 criteria to apply blanket reductions in valuation to classes of property affected by particular negative economic conditions. The Successor Agency is aware that the County Assessor made such reductions to assessed values of residential property in the Project Area and the City generally during the recession that started in 2008 and, as of May 10, 2024, 117 parcels within the Project Area remained under a Proposition 8 reduction. The Fiscal Consultant Report does not assume any future 30 4887-4047-9672v4/200456-0005
reductions in assessed valuations as a result of Proposition 8, but there can be no assurance that additional Proposition 8 reductions will not be made in the future. See the caption “THE PROJECT AREA.” Propositions 218 and 26
On November 5, 1996, State voters approved Proposition 218—Voter Approval for Local Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative Constitutional Amendment. Proposition 218 added Articles XIIIC and XIIID to the State Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property-related fees and charges. On November 2, 2010, California voters approved Proposition 26, the “Supermajority Vote to Pass New Taxes and Fees Act.” Proposition 26 amended Article XIIIC of the State Constitution by adding an expansive definition for the term “tax,” which previously was not defined under the State Constitution. Tax Revenues securing the 2024 Bonds are derived from property taxes which are outside the scope of taxes, assessments and propertyrelated fees and charges which are limited by Proposition 218 and outside of the scope of taxes which are limited by Proposition 26.
Future Initiatives
Articles XIIIA, XIIIB, XIIIC and XIIID to the State Constitution and certain other propositions affecting property tax levies were each adopted as measures which qualified for the ballot pursuant to the State’s initiative process. From time to time other initiative measures could be adopted, further affecting Agency revenues or the Successor Agency’s ability to expend revenues.
SUCCESSOR AGENCY TO THE DINUBA REDEVELOPMENT AGENCY
The Dinuba Redevelopment Agency (the “Former Agency”) was established on April 26, 1983 by the City Council of the City with the adoption of Ordinance No. 654, pursuant to the Redevelopment Law. On June 29, 2011, AB X1 26 was enacted as Chapter 5, Statutes of 2011, together with a companion bill, AB X1 27.A lawsuit was brought in the California Supreme Court, California Redevelopment Association, et al., v.
Matosantos, et al., 53 Cal. 4th 231 (Cal. 2011), challenging the constitutionality of AB X1 26 and AB X1 27. In its December 29, 2011 decision, the California Supreme Court largely upheld AB X1 26, invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced independently. As a result of AB X1 26 and the decision of the California Supreme Court in the California Redevelopment Association case, as of February 1, 2012, all redevelopment agencies in the State were dissolved, including the Former Agency, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies.
On January 24, 2012, pursuant to Resolution No. 2012-08 and Section 34173 of the Dissolution Act, the City Council of the City elected to serve as successor agency to the Former Agency and, on February 14, 2012, established the rules and regulations for the operation of the Successor Agency to assume these successor functions pursuant to Resolution No. 2012-08, adopted by the City Council as the governing body of the Successor Agency. Subdivision (g) of Section 34173 of the Dissolution Act, added by AB 1484, expressly affirms that the Successor Agency is a separate public entity from the City, that the two entities shall not merge, and that the liabilities of the Former Agency will not be transferred to the City nor will the assets of the Former Agency become assets of the City.
The Successor Agency is governed by a five-member Board of Directors (the “Board”) which consists of the members of the City Council of the City of Dinuba. The Mayor acts as the Chair of the Board, the City Manager as its Executive Director, the City Clerk as its Secretary and the Administrative Services Director of the City as the Treasurer of the Successor Agency.
31 4887-4047-9672v4/200456-0005
Members and Officers
The members and officers of the Successor Agency and the expiration dates of their terms are as follows:
Name and Office Expiration of Term
Maribel Reynose, Chair November 2026
Rachel-Nerio Guerrero, Vice Chair November 2024
Benjamin Prado, Member November 2026
Kuldip Thusa, Member November 2026
Linda Launer, Member November 2024
Agency Powers
All powers of the Successor Agency are vested in its five members who are elected members of the City Council. Pursuant to the Dissolution Act, the Successor Agency is a separate public body from the City and succeeds to the organizational status of the Former Agency but without any legal authority to participate in redevelopment activities, except to complete any work related to an approved enforceable obligation. The Successor Agency is tasked with expeditiously winding down the affairs of the Former Agency, pursuant to the procedures and provisions of the Dissolution Act. Under the Dissolution Act, many Agency actions are subject to approval by the Oversight Board, as well as review by the State Department of Finance. California has strict laws regarding public meetings (known as the Ralph M. Brown Act) which generally make all Successor Agency and Oversight Board meetings open to the public in a similar manner as City Council meetings.
Due Diligence Reviews
AB1484 further implements certain provisions of ABX1 26, including establishing a process for determining the liquid assets that redevelopment agencies should have shifted to their successor agencies when they were dissolved, and the amount that should be available for remittance by the successor agencies to their respective county auditor-controllers for distribution to affected taxing entities within the project areas of the former redevelopment agencies. This determination process is commonly known as the “due diligence review process” and was required to be completed through the final step (review by the State Department of Finance) by November 9, 2012 with respect to affordable housing funds and by April 1, 2013 with respect to non-housing funds. Within five business days of receiving notification from the State Department of Finance, the Successor Agency must remit to the county auditor-controller the amount of unobligated balances determined by the State Department of Finance, or it may request a meet and confer with the State Department of Finance to resolve any disputes. If there is a meet and confer process, the Successor Agency must remit the amount of unobligated balances within five working days of receiving a subsequent notification from the State Department of Finance of the amount of unobligated balances at the conclusion of that process.
As to affordable housing funds, the Successor Agency has completed the due diligence review process, and on December 21, 2012, the State Department of Finance issued a letter to the Successor Agency making no adjustments and concurring that the Successor Agency has no unencumbered affordable housing fund balances available for distribution to taxing entities.
As to non-housing funds, the Successor Agency has also completed the due diligence review process, pursuant to which the Successor Agency determined that it had -$133,971 of unobligated non-housing balances to remit to the County Auditor-Controller. On April 29, 2013, the State Department of Finance issued a letter to the Successor Agency making two adjustments:
(1) Since the Successor Agency was not able to provide loan agreements to support the amount owed to the Successor Agency of $1,165,634, such receivable became payable on demand and 32 4887-4047-9672v4/200456-0005
was deemed cash or a cash equivalent available for distribution to the affected taxing entities, and could not be retained in the non-cash or cash equivalents balance; and (2) The Successor Agency requested to retain $1,641,110 to satisfy the fiscal year 2012- 13 obligations. However, the approved Recognized Obligation Payment Schedule enforceable obligations totaled only $1,524,860. Therefore, the amount the Successor Agency could retain for enforceable obligations was reduced by the difference of $116,250 ($1,641,110 - $1,524,860).
Subsequently, the Successor Agency requested a meet and confer to discuss the items adjusted by the State Department of Finance as indicated in its April 29, 2013 letter. The meet and confer session was held on May 21, 2013 and subsequently, the State Department of Finance issued another letter on May 31, 2013 stating the following:
(1) Although the Successor Agency stated that the amount of $1,165,634 represents a loan receivable from the City, there were no contracts in place outlining the terms of the contract. Without a valid contract or repayment schedule, the loan was considered payable on demand and should be included as part of the June 30, 2012 balance. As such, the amount available for distribution to the taxing entities was increased by such amount; and
(2) The Successor Agency’s request to retain $1,164,110 was approved because the Successor Agency provided documentation supporting its assertion that the requested funds were used to satisfy the debt service payments during the period of July 1, 2012 through December 31, 2012 (relating to the second Recognized Obligation Payment Schedule required under the Dissolution Act).
The State Department of Finance stated that the Successor Agency must remit a total of $1,031,663 ($1,165,634 plus the negative $133,971 available balance previously determined by the Successor Agency) to the County Auditor-Controller. The Successor Agency paid such amount to the County for distribution to the taxing entities on July 24, 2015. On July 29, 2015, the Successor Agency received a “finding of completion” letter from the State Department of Finance, which confirms that the Successor Agency has, among other things, paid in full the amounts determined during the due diligence reviews and the county auditor-controller has reported those payments to the State Department of Finance. Upon receipt of such Finding of Completion, the Successor Agency is authorized to proceed with actions permitted under certain provisions of the Dissolution Act, such as the submission of a Long Range Property Management Plan.
Real Property Disposition; Long Range Property Management Plan Generally under Health and Safety Code Sections 34177(e) and 34181(a) of the Dissolution Act, the Successor Agency is required, at the direction of the Oversight Board, to dispose of the assets and properties of the Prior Agency expeditiously and in a manner aimed at maximizing value (except that the Oversight Board may give other directions regarding the transfer of certain government use properties to a public jurisdiction as permitted by the Dissolution Act and regarding the transfer of properties that is required by enforceable obligations). Proceeds from asset sales that are no longer needed for approved development projects or to otherwise wind down the affairs of the Prior Agency, each as determined by the Oversight Board, are to be transferred to the County Auditor-Controller for distribution to taxing agencies.
However, the requirements for such expeditious asset disposition were suspended and are superseded if the DOF approved a Long Range Property Management Plan for the Successor Agency before January 1, 2016.
The Long Range Property Management Plan contains an inventory of the real property interests of the Prior Agency and addresses the proposed use or disposition of each property interest under one of four categories:
(i) retention for governmental use, (ii) retention for future development, (iii) disposition by sale, and (iv) fulfillment of an enforceable obligation. On December 31, 2015, the DOF issued a letter approving the Successor Agency’s Long Range Property Management Plan. 33 4887-4047-9672v4/200456-0005
THE PROJECT AREA
General
Under the Law, a city or county that activated a redevelopment agency was required to adopt, by ordinance, a redevelopment plan for each redevelopment project to be undertaken by the redevelopment agency.
A redevelopment agency could only undertake those activities within a redevelopment project specifically authorized in the adopted redevelopment plan. A redevelopment plan is a legal document, the content of which is largely prescribed in the Redevelopment Law, rather than a “plan” in the customary sense of the word. In general, each redevelopment plan originally included specified time and financial limitations applicable to each project area. SB 107, which became effective September 22, 2015, amended the Dissolution Act to provide that the time limits for receiving property tax revenues and the limitation on the amount of property tax revenues that may be received by the Former Agency and the Successor Agency set forth in the applicable redevelopment plan are not effective for purposes of paying the Successor Agency’s enforceable obligations such as the 2024 Bonds.
Accordingly, the projections set forth in this Official Statement and in the Fiscal Consultant Report attached to this Official Statement as Appendix A were prepared without regard to the time and financial limitations set forth in the Redevelopment Plan for the Project Area. See below under this caption for additional information regarding the Project Area, including information on land use, property ownership, assessed valuation and Tax Revenues generated within the Project Area. See “SECURITY FOR THE 2024 BONDS—Tax Revenues.” General Description of Project Area and Development
The Project Area contains approximately 2,413 acres, most of which are located in the original urban core of the City and includes residential, commercial, industrial and public uses.
Through the redevelopment process, the Former Agency explored ways to protect and enhance the existing urbanized environment and focused on means to redevelop stagnating and blighted areas in such a way to stimulate and attract private investment, thereby improving the City’s economic health, employment opportunities and tax base.
Benefits of the Project Area have, and will, accrue to future inhabitants and property owners within the Project Area as well as to the residents and taxpayers of the City as the Project Area was redeveloped.
Redevelopment of the Project Area has benefited the community in the following ways:
A. Comprehensive planning, design, development, reconstruction and rehabilitation has facilitated a higher and better utilization of the lands within the Project Area thereby contributing to the public health, safety and welfare.
B. Construction activity has been stimulated and employment increased in the commercial and industrial segments of the community.
C. Curbs, gutters, sidewalks, streets, the water system, flood control systems and other public facilities have been improved.
D. Stagnant unproductive land use has been recycled into viable, productive use consistent with the City’s General Plan.
E. Development of residential, commercial and industrial construction in the Project Area has been encouraged and made economically feasible.
The Redevelopment Plan conforms to the City’s General Plan in reference to types of land use, highways and public facilities. Permitted land uses include low, medium and high density residential; central and highway commercial; light and heavy industrial, public and institutional facilities. 34 4887-4047-9672v4/200456-0005
Redevelopment Plan; Inapplicability of Plan Limits
The Redevelopment Plan for the City of Dinuba Redevelopment Project was approved by Ordinance No. 668 adopted by the City Council on July 6, 1984. The redevelopment plan for the Dinuba Redevelopment Project No. 2 was approved by Ordinance No. 724 adopted by the City Council on June 27, 1989 and was amended by Ordinance No. 90-18 adopted by the City Council on July 10, 1990. The Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project No. 2, As Amended (the “Project Area”) was created by merging the above project areas pursuant to Ordinance No. 91-13 adopted by the City Council on December 10, 1991 and was amended by Ordinance No. 93-11 adopted by the City Council on November 23, 1993; Ordinance No. 95-06 adopted by the City Council on July 18, 1995; Ordinance No. 2001-8 adopted by the City Council on July 10, 2001; Ordinance No. 2005-14 adopted by the City Council on July 12, 2005; and Ordinance No. 2008-03 adopted by the City Council on July 8, 2008 (collectively, the “Redevelopment Plan”).
35 4887-4047-9672v4/200456-0005
Pursuant to prior law, the Redevelopment Plan contained certain plan limits such as a last day to issue debt, a plan termination date, last day to receive tax increment, a maximum amount of tax increment, and a maximum amount of bonded indebtedness (collectively, “Plan Limits”). Pursuant to prior law, the total combined tax increment revenues received by the Former Agency over the life of the Redevelopment Plan for the original Project Area, Project No. 2, Amendment No. 1 to Project No. 2, and Amendment No. 1 to the merged Project (the “Original Project Area Components”) could not exceed $150,000,000. The total amount of outstanding bonded indebtedness incurred by the Former Agency, payable from tax increment revenues, which can be outstanding at any one time could not exceed $125,000,000. In addition, the final dates to receive tax increment and the Redevelopment Plan termination dates for each Project sub-area are listed in the table below.
Project Sub-Area
Last Date to
Issue Debt Plan Termination Date
Last Date to
Receive Increment
Dinuba Redevelopment Project July 6, 2014 July 6, 2024 July 6, 2034 Redevelopment Project No. 2 June 27, 2019 June 27, 2029 June 27, 2039 Amendment No. 1 to Project No. 2 June 26, 2020 June 26, 2030 June 26, 2040 Amendment No. 1 to Merged Project November 16, 2023 November 16, 2033 November 16, 2043 Amendment No. 2 to Merged Project June 27, 2015 June 27, 2025 June 27, 2040 Amendment No. 3 to Merged Project July 10, 2021 July 10, 2031 July 10, 2046 Amendment No. 4 to Merged Project July 12, 2025 July 12, 2035 July 12, 2050 Amendment No. 5 to Merged Project July 8, 2028 July 8, 2038 July 8, 2053 After the Former Agency’s dissolution, there was some uncertainty regarding whether some or all of the Plan Limits remained in effect. Amendments to the Dissolution Act enacted in September 2015, in particular amendments to California Health and Safety Code Section 34189 (“HSC Sec. 34189”), clarify that, for the purpose of payment of enforceable obligations, such as the 2024 Bonds and Existing Parity Debt, the Successor Agency is not subject to the Plan Limits.
Pass-Through Agreements
As discussed under the heading “SECURITY FOR THE 2024 BONDS — Pass-Through Agreements,” the Former Agency entered into tax sharing agreements with the County, FCD, APCD, the Library and the School District.
Except for the Pass-Through Agreement with the School District and the 1990 County Agreement, both of which are payable on a subordinate basis to the 2024 Bonds, the Existing Parity Debt and the Subordinate Bonds, only to the extent of substantial reduction in Tax Revenues because of unforeseen circumstances, any payments made by the Successor Agency to satisfy the balance of the Pass-Through Agreements are senior to the Pledged Tax Revenues available to pay debt service on the 2024 Bonds, the Existing Parity Debt and the Subordinate Bonds. As defined in the Indenture, “Pledged Tax Revenues” exclude amounts required to be paid to taxing agencies pursuant to these Senior Pass-Through Agreements.
Under the Dissolution Act, the Successor Agency is no longer responsible for the payment of passthrough amounts under the Pass-Through Agreements. Instead, the Dissolution Act requires the County AuditorController to distribute from the Redevelopment Property Tax Trust Fund amounts required to be distributed under the Pass-Through Agreements to the taxing entities for each six-month period before amounts are distributed by the County Auditor-Controller from the Redevelopment Property Tax Trust Fund to the Successor Agency’s Redevelopment Obligation Retirement Fund each January 2 and June 1. If, however, (a) the Successor Agency determines and reports, no later than December 1 or May 1, as applicable (i.e., by May 1, 2025 with respect to the Recognized Obligation Payment Schedule for July 1, 2025 through December 31, 2025), that the total amount available to the Successor Agency from the Redevelopment Property Tax Trust Fund allocation to the Successor Agency’s Redevelopment Obligation Retirement Fund, from other funds transferred from the Former Agency, and from funds that have or will become available through asset sales and all redevelopment 36 4887-4047-9672v4/200456-0005
operations, are insufficient to fund the payment of pass-through obligations, for Successor Agency enforceable obligations listed on the Recognized Obligation Payment Schedule, and for the Successor Agency’s administrative cost allowance, and (b) the State Controller concurs that there are insufficient funds to pay required debt service, the Dissolution Act provides for certain adjustments to be made to the estimated distributions. The Successor Agency cannot guarantee that the process prescribed by the Dissolution Act of administering the Pledged Tax Revenues and the subordinations of amounts due under the Pass-Through Agreements will effectively result in adequate Pledged Tax Revenues for the payment of principal and interest on the Bonds when due. See “SECURITY FOR THE 2024 BONDS – Tax Increment Financing” and “– Recognized Obligation Payment Schedule.” See “PLEDGED TAX REVENUES—Projected Pledged Tax Revenues” herein.
Statutory Pass-Throughs
As discussed under the heading “SECURITY FOR THE 2024 BONDS — Statutory Pass-Through Amounts,” certain Tax Revenues are paid as Statutory Pass-Through Amounts to affected taxing entities prior to the Pledged Tax Revenues being made available to the Successor Agency to pay debt service on the 2024 Bonds, Existing Parity Debt and the Subordinate Bonds.
Under the Dissolution Act, the Successor Agency is no longer responsible for the payment of Statutory Pass-Through Amounts. Instead, the Dissolution Act requires the County Auditor-Controller to distribute from the Redevelopment Property Tax Trust Fund amounts required to be distributed for Statutory Pass-Through Amounts to the taxing entities for each six-month period before amounts are distributed by the County AuditorController from the Redevelopment Property Tax Trust Fund to the Successor Agency’s Redevelopment Obligation Retirement Fund each January 2 and June 1.
The Dissolution Act provides for a procedure by which the Successor Agency may make the Statutory Pass-Through Amounts subordinate to the payment of debt service on the 2024 Bonds and Existing Parity Debt; however, the Successor Agency has determined not to undertake such procedure, and therefore, the Statutory Pass-Through Amounts are not subordinate to the payment of debt service 2024 Bonds and Existing Parity Debt.
See “PLEDGED TAX REVENUES” herein.
33676 Amounts
As discussed under the heading “SECURITY FOR THE 2024 BONDS – 33676 Amounts,” certain Tax Revenues are paid to Alta Public Cemetery District under former Section 33676 of the Law. The Dissolution Act provides for a procedure by which the Successor Agency may make the 33676 Amounts subordinate to the payment of debt service on the 2024 Bonds and Existing Parity Debt; however, the Successor Agency has determined not to undertake such procedure, and therefore, the 33676 Amounts are not subordinate to the payment of debt service 2024 Bonds and Existing Parity Debt. See “PLEDGED TAX REVENUES” herein. 37 4887-4047-9672v4/200456-0005
Land Uses
The types of land use in the Project Area for Fiscal Year 2023-24 is set forth in Table 1 below:
Table 1
Dinuba Successor Agency
Project Area
Taxable Value and Parcels by Land Use
Fiscal Year 2023-24
Land Use
Number of
Parcels
Secured
Assessed Value
Percent of Secured
Assessed Value (1)
Single Family Residential 3,198 $ 599,915,248 56.98%
Commerical 303 255,743,107 24.29
Industrial 16 100,867,589 9.58
Multifamily Other Residential 352 78,474,124 7.45
Miscellaneous 362 17,250,647 1.64
Agricultural 3 591,661 0.06
Total Secured: 4,234 $ 1,052,842,376 100.00%
(1) Based on Fiscal Year 2023-24 secured assessed valuation of $1,052,842,376. Percent of incremental value may differ.
Source: Urban Futures, Inc. with information from the Tulare County Fiscal Year 2023-24 Secured Property Tax Roll. 38 4887-4047-9672v4/200456-0005
Top Property Owners
Table 2 below lists the top ten property owners in the Project Area by total assessed value (both secured and unsecured).
Table 2
Dinuba Successor Agency
Project Area
Top Ten Property Owners by Total Assessed Valuation
Fiscal Year 2023-24
Property Owner
Secured Assessed
Valuation
Unsecured
Assessed
Valuation
Total Taxable
Assessed Valuation Primary Land Use
Percent of
Total
Assessed
Valuation (1)
Percent of
Incremental
Assessed
Valuation (2)
1. Ruiz Foods Products Inc. $ 73,560,223 $ - $ 73,560,223 Industrial 6.50% 7.46% 2. Best Buy Stores LP 52,492,757 - 52,492,757 Commercial 4.64 5.32 3. Best Buy Warehousing Logistics Inc. - 43,424,520 43,424,520 Unsecured 3.84 4.40 4. Wal-Mart Real Estate Business Trust 20,386,451 - 20,386,451 Commercial 1.80 2.07 5. Patterson Logistics Services LLC(3) 16,063,920 - 16,063,920 Commercial 1.42 1.63
6. Dinuba Properties LLC 12,839,085 - 12,839,085 Industrial 1.13 1.30 7. Sai Shiva LLC(3) 8,551,580 - 8,551,580 Motel 0.76 0.87
8. SJ22 LLC 7,068,110 - 7,068,110 Commercial 0.62 0.72
9. 1730 South College Avenue LLC 5,655,117 - 5,655,117 Commercial 0.50 0.57 10. ES West Inc. 5,423,575 - 5,423,575 Commercial 0.48 0.55 Total $ 202,040,818 $43,424,520 $ 245,465,338 21.69% 24.89% (1) Based on fiscal year 2023-24 total (secured and unsecured) assessed valuation of $1,131,799,730. (2) Based on fiscal year 2023-24 total (secured and unsecured) incremental assessed valuation of $986,380,687. (3) Assessment appeal pending. Source: Urban Futures, Inc. with information from the Tulare County Fiscal Year 2023-24 Property Tax Roll. 39 4887-4047-9672v4/200456-0005
Appeals
As previously discussed under “PROPERTY TAXATION IN CALIFORNIA—Appeals of Assessed Values” and “—Proposition 8,” property owners may apply for a reduction of their property tax assessment by filing a written application, in form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board.
Table 3 below sets forth information regarding pending appeals for the top taxpayers in the Project Area, including parcel valuation, owner’s opinion of value, and the requested valuation reduction. See also “APPENDIX A – FISCAL CONSULTANT’S REPORT.”
Table 3
Dinuba Successor Agency
Project Area
Appeals Information – Top Taxpayers
Fiscal Year 2023-24
Number of
Appeals Filed
Tax Roll
Year
Tax Roll
Valuation
Applicant’s
Opinion of
Valuation
Requested
Reduction
Historical
Success
Rate
Estimated
Loss of
Assessed
Value
6 Various $21,722,952 $15,270,104 $6,452,848 0% $0
Source: Urban Futures, Inc. with data obtained from Tulare County.
The Successor Agency has no way of knowing the outcome of these appeals or their effect on the valuation in the Project Area. In addition, the Fiscal Consultant did not factor in any potential successful appeals in the projected tax increment revenues.
PLEDGED TAX REVENUES
Pledged Tax Revenues (as described in the section “SECURITY FOR THE 2024 BONDS” herein) are to be deposited in the Redevelopment Obligation Retirement Fund, and thereafter, transferred by the Successor Agency to the Debt Service Fund administered by the Trustee and applied to the payment of the principal of and interest on the 2024 Bonds in accordance with the requirements of the Indenture. 40 4887-4047-9672v4/200456-0005
Historical Assessed Valuation and Pledged Tax Revenues
Table 4 below shows taxable assessed valuations and resulting Pledged Tax Revenues in the Project Area for the Fiscal Years 2019-20 through 2023-24.
Table 4
Dinuba Successor Agency
Project Area
Historical Assessed Valuation and Pledged Tax Revenues
Fiscal Year
2018-19
Fiscal Year
2019-20
Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Assessed Valuation $845,997,786 $879,618,083 $933,061,693 $992,745,497 $1,073,897,113 Base Year Valuation (145,419,043) (145,419,043) (145,419,043) (145,419,043) (145,419,043) Incremental Valuation (1) 700,578,743 734,199,040 787,642,650 847,326,454 928,478,070 Gross Tax Revenues(2) 7,493,556 7,848,480 8,598,729 9,001,332 10,082,640 Less: Senior Pass Through Payments(3) (1,310,365) (1,431,762) (1,663,539) (1,841,334) (2,110,633) Less: County Administrative Fees (188,575) (194,189) (196,921) (222,604) (261,866) Pledged Tax Revenues 5,994,616 6,222,529 6,738,269 6,937,394 7,710,141
(1) Increase over base year valuation.
(2) Includes supplemental and unitary revenues.
(3) Includes amounts due under Senior Statutory Pass-Through Agreements, Statutory Pass-Through Amounts and 33676 Amounts.
Source: Urban Futures, Inc. based on information from the Tulare County Auditor-Controller. 41 4887-4047-9672v4/200456-0005
Projected Pledged Tax Revenues
The Successor Agency has retained Urban Futures, Inc., Walnut Creek, California to provide projections of taxable valuation and Pledged Tax Revenues from development in the Project Area. The Successor Agency believes the assumptions (set forth in the footnotes below and “APPENDIX A – FISCAL CONSULTANT’S REPORT”) upon which the projections are based are reasonable; however, some assumptions may not materialize and unanticipated events and circumstances may occur (see “RISK FACTORS”). Therefore, the actual Pledged Tax Revenues received during the forecast period may vary from the projections and the variations may be material. A summary of the projected taxable valuation and Pledged Tax Revenues to be derived from the Project Area is set forth in Tables 5 and 6 below. Table 5 assumes there will be no growth in assessed values in the Project Area through the final maturity of the 2024 Bonds, while Table 6 assumes an increase in assessed values by 2% annually.
Table 5
Dinuba Successor Agency
Project Area Projected Pledged Tax Revenues (Assumes No Growth) Fiscal Year
No Growth
Gross Tax
Revenues(1)
Less Senior
Pass
Throughs(2)
Less County
Administration
Fees
No Growth
Projected
Pledged Tax
Revenues
Combined Existing
Parity Debt and
2024 Bonds
Annual Debt
Service*(3)
2024-25 $9,866,737 $2,170,885 $256,239 $7,439,612 $3,109,719 2025-26 9,866,737 2,170,885 256,239 7,439,612 3,115,069 2026-27 9,866,737 2,170,885 256,239 7,439,612 3,103,719 2027-28 9,866,737 2,170,885 256,239 7,439,612 3,089,200 2028-29 9,866,737 2,170,885 256,239 7,439,612 3,093,988 2029-30 9,866,737 2,170,885 256,239 7,439,612 3,101,275 2030-31 9,866,737 2,170,885 256,239 7,439,612 3,049,363 2031-32 9,866,737 2,170,885 256,239 7,439,612 3,153,675 2032-33 9,866,737 2,170,885 256,239 7,439,612 3,143,463 2033-34 9,866,737 2,170,885 256,239 7,439,612 3,238,800 2034-35 9,866,737 2,170,885 256,239 7,439,612 3,061,575 2035-36 9,866,737 2,170,885 256,239 7,439,612 3,047,800 2036-37 9,866,737 2,170,885 256,239 7,439,612 2,470,725 2037-38 9,866,737 2,170,885 256,239 7,439,612 2,470,663 2038-39 9,866,737 2,170,885 256,239 7,439,612 1,997,600 2039-40 9,866,737 2,170,885 256,239 7,439,612 1,739,600 2040-41 9,866,737 2,170,885 256,239 7,439,612 884,000
* Preliminary, subject to change. (1) Based on Fiscal Year 2023-24 assessed valuation and a 1.00% tax rate, and assumes no growth thereafter. (2) Includes amounts due under Senior Statutory Pass-Through Agreements, Statutory Pass-Through Amounts and 33676 Amounts.
(3) Includes debt service on the 2024 Bonds.
Source: Urban Futures, Inc. and Underwriter.
42 4887-4047-9672v4/200456-0005
Table 6
Dinuba Successor Agency
Project Area Projected Pledged Tax Revenues (Assumes 2% Growth) Fiscal Year
2% Growth
Gross Tax
Revenues(1)
Less Senior
Pass
Throughs(2)
Less County
Administration
Fees
Projected
Pledged Tax
Revenues
Combined Existing
Parity Debt and 2024
Bonds Annual Debt
Service(3)*
2024-25 $10,093,097 $2,232,851 $262,118 $ 7,598,128 $3,109,719 2025-26 10,323,984 2,296,056 268,114 7,759,814 3,115,069 2026-27 10,559,489 2,360,525 274,230 7,924,734 3,103,719 2027-28 10,799,704 2,426,283 280,468 8,092,952 3,089,200 2028-29 11,044,723 2,493,357 286,831 8,264,535 3,093,988 2029-30 11,294,643 2,561,772 293,322 8,439,549 3,101,275 2030-31 11,549,561 2,631,555 299,942 8,618,064 3,049,363 2031-32 11,809,577 2,702,734 306,695 8,800,148 3,153,675 2032-33 12,074,794 2,779,029 313,582 8,982,183 3,143,463 2033-34 12,345,315 2,856,850 320,608 9,167,858 3,238,800 2034-35 12,621,247 2,131,796 327,774 10,161,677 3,061,575 2035-36 12,902,697 2,195,656 335,083 10,371,958 3,047,800 2036-37 13,189,776 2,260,793 342,538 10,586,445 2,470,725 2037-38 13,482,597 2,328,426 350,143 10,804,028 2,470,663 2038-39 13,781,274 2,397,940 357,900 11,025,434 1,997,600 2039-40 14,085,924 2,284,492 365,811 11,435,621 1,739,600 2040-41 14,396,668 1,548,798 373,881 12,473,989 884,000
* Preliminary, subject to change. (1) Based on Fiscal Year 2023-24 assessed valuation and a 1.00% tax rate, and assumes 2% growth annually thereafter. (2) Includes amounts due under Senior Statutory Pass-Through Agreements, Statutory Pass-Through Amounts and 33676 Amounts.
(3) Includes debt service on the 2024 Bonds. Accounts for debt service due on March 1 of the applicable Fiscal Year and the following September 1.
Source: Urban Futures, Inc. and Underwriter.
43 4887-4047-9672v4/200456-0005
Outstanding Annual Debt Service on 2024 Bonds and Existing Parity Debt Set forth below is the annual debt service (assuming minimum sinking account payments) for the term of the 2024 Bonds and the Existing Parity Debt.
Maturity Date
(September 1)
2015 Bonds
(Parity Debt)
2017 Bonds
(Parity Debt) 2024 Bonds*
Total Debt Service
for 2024 Bonds
and Existing
Parity Debt*
2024 $1,200,831 $1,050,288 $ 63,933 $2,315,052
2025 1,201,081 1,057,888 850,750 3,109,719
2026 1,194,331 1,054,488 866,250 3,115,069
2027 1,193,231 1,055,488 855,000 3,103,719
2028 635,263 910,688 1,543,250 3,089,200
2029 638,400 914,588 1,541,000 3,093,988
2030 643,200 922,075 1,536,000 3,101,275
2031 377,200 1,128,913 1,543,250 3,049,363
2032 381,200 1,135,475 1,637,000 3,153,675
2033 379,800 1,130,913 1,632,750 3,143,463
2034 2,098,200 1,140,600 -- 3,238,800
2035 1,767,600 1,293,975 -- 3,061,575
2036 1,747,200 1,300,600 -- 3,047,800
2037 -- 2,470,725 -- 2,470,725
2038 -- 2,470,663 -- 2,470,663
2039 -- 1,997,600 -- 1,997,600
2040 -- 1,739,600 -- 1,739,600
2041 -- 884,000 -- 884,000
* Preliminary, subject to change.
Source: Oppenheimer & Co., Inc.
44 4887-4047-9672v4/200456-0005
Debt Service Coverage
Set forth below is the estimated debt service coverage of the 2024 Bonds and the Existing Parity Debt using no growth in assessed value of the property in the Project Area for Fiscal Year 2023-24 Pledged Tax Revenues through maturity of the 2024 Bonds.
Fiscal Year
No Growth Projected
Pledged Tax Revenues
Total Debt Service for
2024 Bonds and
Existing Parity Debt(1)*
Total Debt Service Coverage for
2024 Bonds and
Existing Parity Debt(1)*
2024-25 $7,439,612 $3,109,719 2.39x
2025-26 7,439,612 3,115,069 2.39
2026-27 7,439,612 3,103,719 2.40
2027-28 7,439,612 3,089,200 2.41
2028-29 7,439,612 3,093,988 2.40
2029-30 7,439,612 3,101,275 2.40
2030-31 7,439,612 3,049,363 2.44
2031-32 7,439,612 3,153,675 2.36
2032-33 7,439,612 3,143,463 2.37
2033-34 7,439,612 3,238,800 2.30
2034-35 7,439,612 3,061,575 2.43
2035-36 7,439,612 3,047,800 2.44
2036-37 7,439,612 2,470,725 3.01
2037-38 7,439,612 2,470,663 3.01
2038-39 7,439,612 1,997,600 3.72
2039-40 7,439,612 1,739,600 4.28
2040-41(2) 7,439,612 884,000 8.42
* Preliminary, subject to change. (1) Excludes annual debt service payments for the Subordinate Bonds. Accounts for debt service due on March 1 of the applicable Fiscal Year and the following September 1.
(2) Final maturity of the 2017 Bonds.
Source: Underwriter based on Pledged Tax Revenues provided by Urban Futures Inc.
45 4887-4047-9672v4/200456-0005
Set forth below is the estimated debt service coverage of the 2024 Bonds and Existing Parity Debt using a 2% annual growth in assessed value of the property in the Project Area for Fiscal Year 2023-24 Pledged Tax Revenues through maturity of the 2024 Bonds.
Fiscal Year
2% Growth Projected
Tax Revenues
2024 Bonds and
Existing Parity Debt
Debt Service(1)*
2024 Bonds and
Existing Parity Debt
Debt Service Coverage(1)*
2024-25 $ 7,598,128 $3,109,719 2.44x
2025-26 7,759,814 3,115,069 2.49
2026-27 7,924,734 3,103,719 2.55
2027-28 8,092,952 3,089,200 2.62
2028-29 8,264,535 3,093,988 2.67
2029-30 8,439,549 3,101,275 2.72
2030-31 8,618,064 3,049,363 2.83
2031-32 8,800,148 3,153,675 2.79
2032-33 8,982,183 3,143,463 2.86
2033-34 9,167,858 3,238,800 2.83
2034-35 10,161,677 3,061,575 3.32
2035-36 10,371,958 3,047,800 3.40
2036-37 10,586,445 2,470,725 4.28
2037-38 10,804,028 2,470,663 4.37
2038-39 11,025,434 1,997,600 5.52
2039-40 11,435,621 1,739,600 6.57
2040-41(2) 12,473,989 884,000 14.11
* Preliminary, subject to change. (1) Excludes annual debt service payments for the Subordinate Bonds. Accounts for debt service due on March 1 of the applicable Fiscal Year and the following September 1.
(2) Final maturity of the 2017 Bonds.
Source: Underwriter based on Pledged Tax Revenues provided by Urban Futures, Inc.
RISK FACTORS
The following information should be considered by prospective investors in evaluating the 2024 Bonds.
However, the following does not purport to be an exhaustive listing of risks and other considerations which may be relevant to investing in the 2024 Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks.
Reduction in Taxable Value
Tax Revenues allocated to the Redevelopment Property Tax Trust Fund are determined by the amount of incremental taxable value in the Project Area and the current rate or rates at which property in the Project Area is taxed. The reduction of taxable values of property in the Project Area caused by economic factors beyond the Successor Agency’s control, such as relocation out of the Project Area by one or more major property owners, sale of property to a non-profit corporation exempt from property taxation or the complete or partial destruction of such property caused by, among other eventualities, earthquake or other natural disaster, could cause a reduction in the Tax Revenues that provide for the repayment of and secure the 2024 Bonds. Such reduction in Tax Revenues could have an adverse effect on the Successor Agency’s ability to make timely payments of principal of and interest on the 2024 Bonds.
As described in greater detail under the caption “PROPERTY TAXATION IN CALIFORNIA— Article XIIIA of the State Constitution,” Article XIIIA provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed a 46 4887-4047-9672v4/200456-0005
2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index, comparable local data or any reduction in the event of declining property value caused by damage, destruction or other factors (as described above). Such measure is computed on a calendar year basis. Any resulting reduction in the full cash value base over the term of the 2024 Bonds could reduce Tax Revenues securing the 2024 Bonds.
In addition to the other limitations on and required application under the Dissolution Act of Tax Revenues on deposit in the Redevelopment Property Tax Trust Fund, as described in this Official Statement, the State electorate or Legislature could adopt a constitutional or legislative property tax reduction with the effect of reducing Tax Revenues allocated to the Redevelopment Property Tax Trust Fund and available to the Successor Agency. Although the federal and State Constitutions include clauses generally prohibiting the Legislature’s impairment of contracts, there are also recognized exceptions to these prohibitions. There is no assurance that the State electorate or Legislature will not at some future time approve additional limitations that could reduce the Tax Revenues and adversely affect the source of repayment and security of the 2024 Bonds.
Concentration of Ownership
The ten largest property taxpayers in the Project Area based upon the Fiscal Year 2023-24 locally assessed tax roll reported by the County Assessor, owned approximately 19.69% of the secured assessed value of $1,053,114,588 within the Project Area, approximately 21.69% of the total assessed value (secured and unsecured) of $1,131,799,730 within the Project Area and approximately 24.89% of the total incremental assessed value (secured and unsecured) of $986,380,687 within the Project Area. See the Fiscal Consultant Report attached to this Official Statement as Appendix A. Concentration of ownership presents a risk in that if one or more of the largest property owners were to default on their taxes, or were to successfully appeal the tax assessments on property within the Project Area, a substantial decline in Tax Revenues could result. See the caption “THE PROJECT AREA—Largest Taxpayers” for more information about these ten largest property taxpayers and see “THE PROJECT AREA—Assessment Appeals” for information as to pending appeals of tax assessments.
Risks to Real Estate Market
The Successor Agency’s ability to make payments on the 2024 Bonds is dependent upon the economic strength of the Project Area. The general economy of the Project Area is subject to all of the risks generally associated with urban real estate markets. Real estate prices and development may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in development costs, the supply of or demand for competitive properties in such area, the market value of property in the event of sale or foreclosure and other similar factors. Furthermore, real estate development within the Project Area could be adversely affected by limitations of infrastructure or future governmental policies, including governmental policies to restrict or control development, changes in real estate tax rates and other operating expenses, zoning laws and laws relating to threatened and endangered species and hazardous materials and fiscal policies, as well as natural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses. In addition, if there is a decline in the general economy of the Project Area, the owners of property within the Project Area may be less able or less willing to make timely payments of property taxes or may petition for reduced assessed valuation causing a delay or interruption in the receipt of Tax Revenues by the Successor Agency from the Project Area.
Because assessed values do not necessarily indicate fair market values, the declines in fair market values in recent years may have been even greater than the declines in assessed valuations, although it is also possible that market values could be greater than assessed valuations at any given time. No assurance can be given that the individual parcel owners will pay property taxes in the future or that they will be able to pay such taxes on a timely basis. See the caption “—Bankruptcy and Foreclosure” for a discussion of certain limitations on the Successor Agency’s ability to pursue judicial proceedings with respect to delinquent parcels. 47 4887-4047-9672v4/200456-0005
Reduction in Inflation Rate
As described in greater detail above, Article XIIIA of the State Constitution provides that the full cash value of real property used in determining taxable value may be adjusted from year to year to reflect the rate of inflation, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data. Such measure is computed on a calendar year basis. Because Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate or 2%, there have been years in which the assessed values were adjusted by actual inflationary rates, which were less than 2%. The Successor Agency is unable to predict if any adjustments to the full cash value of real property within the Project Area, whether an increase or a reduction, will be realized in the future. See “PROPERTY TAXATION IN CALIFORNIA—Article XIIIA of the State Constitution.”
Levy and Collection of Taxes
The Successor Agency has no independent power to levy or collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the Tax Revenues, and accordingly, could have an adverse impact on the security for and the ability of the Successor Agency to repay the 2024 Bonds.
Likewise, delinquencies in the payment of property taxes by the owners of land in the Project Area, and the impact of bankruptcy proceedings on the ability of taxing agencies to collect property taxes, could have an adverse effect on the Successor Agency’s ability to make timely payments on the 2024 Bonds. As discussed under the caption “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection Procedures— Delinquencies,” the County has not adopted a Teeter Plan. Accordingly, the payment of property taxes (and the associated Tax Revenues) is subject to delinquencies.
COVID-19
The COVID-19 pandemic and the governmental actions to respond to and control the outbreak materially altered the behavior of people and disrupted business activity, resulting in a significant contraction of the national, state and local economies. Employment data released since the imposition of governmental restrictions on activities showed a dramatic increase in unemployment rates and, while some recovery of jobs has occurred, unemployment rates remain above pre-pandemic levels. In addition, domestic and international stock markets experienced declines in market value following the onset of the outbreak. Although rebounds in the global financial markets have since occurred, price volatility remains.
With widespread vaccination currently underway worldwide, the domestic governmental-imposed “stay-at-home” orders and restrictions on operations of schools and businesses implemented to respond to and control the outbreak have been eased. Restrictions, however, may be re-imposed in various jurisdictions from time to time as local conditions warrant. It is not known with any level of certainty when a full re-opening of the economy will be achieved and sustained. The negative effects of the COVID–19 pandemic and its aftermath on global, national and local economies is widely expected to continue at least for the foreseeable future.
The COVID-19 outbreak is ongoing and developments will continue. The ultimate degree of impact of COVID-19 on the Project Area and the Tax Revenues is difficult to predict due to the evolving nature of the COVID-19 pandemic. However, to-date the Successor Agency has not experienced significant operational or financial impacts.
State Budget Issues
AB X1 26 and AB 1484 were enacted by the State Legislature and Governor as trailer bills necessary to implement provisions of the State’s budget acts for its fiscal years 2011-12 and 2012-13, respectively, and constituted efforts to address structural deficits in the State general fund budget. In general terms, these bills 48 4887-4047-9672v4/200456-0005
implemented a framework to transfer cash assets which were previously held by redevelopment agencies to cities, counties and special districts to fund core public services, with assets transferred to schools offsetting State general fund costs (then projected savings of $1.5 billion). There can be no assurance that additional legislation will not be enacted in the future to additionally implement provisions relating to the State budget or otherwise that may affect successor agencies or tax increment revenues, including Tax Revenues. See the caption “—Changes in the Law.”
SB 107, which made extensive amendments to the Dissolution Act, was enacted following the adoption of the State fiscal year 2015-16 budget, after having initially been presented as AB 113, a trailer bill to the State fiscal year 2015-16 budget. SB 107 changed the process for submitting Recognized Obligation Payment Schedules from a six-month to an annual process, authorized successor agencies to submit and obtain DOF approval of a Last and Final ROPS to govern all remaining payment obligations of successor agencies, altered the provisions governing the distribution of Redevelopment Property Tax Trust Fund moneys attributable to pension and State Water Project tax rate overrides and eliminated the impact of financial and time limitations in redevelopment plans for purposes of paying enforceable obligations, among other changes to the Dissolution Act. These statutory amendments impact the manner in which successor agencies claim Redevelopment Property Tax Trust Fund moneys for enforceable obligations and, for some successor agencies, impact the amount of Redevelopment Property Tax Trust Fund moneys that will be available for payment of a successor agency’s enforceable obligations.
Information about the State budget is regularly available at various State-maintained websites. Text of proposed and adopted budgets may be found at the website of the DOF, http://www.dof.ca.gov, under the heading “California Budget.” An impartial analysis of the budget is posted by the Legislative Analyst’s Office (the “LAO”) at http://www.lao.ca.gov. In addition, various State official statements, many of which contain a summary of the current and past State budgets and the impact of those budgets on cities in the State, may be found at the website of the State Treasurer, http://www.treasurer.ca.gov. The information referred to is prepared by the respective State agency maintaining each website and not by the Successor Agency or the Underwriter, and the Successor Agency and the Underwriter take no responsibility for the continued accuracy of these Internet addresses or for the accuracy, completeness or timeliness of information posted thereon, and such information is not incorporated herein by these references.
For additional information regarding the 2023-24 State Budget and the proposed 2024-25 State Budget, see the DOF’s website at www.dof.ca.gov and the LAO’s website at www.lao.ca.gov.
None of the websites or webpages that are referenced above is in any way incorporated into this Official Statement. They are cited for informational purposes only. Neither the Successor Agency nor the Underwriter makes any representation whatsoever as to the accuracy or completeness of any of the information on such websites.
Recognized Obligation Payment Schedule
The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid thereunder, only those obligations listed in the Recognized Obligation Payment Schedule may be paid by the Successor Agency from the funds specified in the Recognized Obligation Payment Schedule. Before each February 1, with respect to the following fiscal year, the Dissolution Act requires successor agencies to prepare and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as described under the caption “SECURITY FOR THE 2024 BONDS—Recognized Obligation Payment Schedule”) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Tax Revenues will not be distributed from the Redevelopment Property Tax Trust Fund by the County AuditorController to the Successor Agency’s Redevelopment Obligation Retirement Fund without a duly approved and effective Recognized Obligation Payment Schedule obtained in sufficient time prior to the June 1 property tax distribution date. See the caption “SECURITY FOR THE 2024 BONDS—Recognized Obligation Payment 49 4887-4047-9672v4/200456-0005
Schedule.” In the event that the Successor Agency fails to file a Recognized Obligation Payment Schedule with respect to a fiscal year, the availability of Tax Revenues to the Successor Agency could be adversely affected for such period.
In the event that a successor agency fails to submit to the DOF an oversight board-approved Recognized Obligation Payment Schedule complying with the provisions of the Dissolution Act within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations, the DOF may determine if any amount should be withheld by the applicable county auditor-controller for payments for enforceable obligations from distribution to taxing entities pursuant to clause (iv) below, pending approval of a Recognized Obligation Payment Schedule. Upon notice provided by the DOF to the county auditor-controller of an amount to be withheld from allocations to taxing entities, the county auditor-controller must distribute to taxing entities any moneys in the Redevelopment Property Tax Trust Fund in excess of the withholding amount set forth in the notice, and the county auditor-controller must distribute withheld funds to the successor agency only in accordance with a Recognized Obligation Payment Schedule when and as approved by the DOF.
Typically, under the Redevelopment Property Tax Trust Fund distribution provisions of the Dissolution Act, the county auditor-controller is to distribute funds for each six-month period in the following order specified in Section 34183 of the Dissolution Act:
(i) First, to each local agency and school entity, to the extent applicable, amounts required for pass-through payments that such entity would have received under provisions of the Redevelopment Law, as those provisions read on January 1, 2011, including Pass-Through Payments. Pension or State Water Project override revenues that are not pledged to or not needed for debt service on Agency debt will be allocated and paid to the entity that levies the override;
(ii) Second, to the Successor Agency for payments listed in its Recognized Obligation Payment Schedule;
(iii) Third, to the Successor Agency for the administrative cost allowance, as defined in the Dissolution Act; and
(iv) Fourth, the remainder is distributed to the taxing entities in an amount proportionate to such taxing entity’s share of property tax revenues in the tax rate area in such fiscal year (without adjustment for passthrough obligations).
If the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations and the DOF does not provide a notice to the County Auditor-Controller to withhold funds from distribution to taxing entities, amounts in the Redevelopment Property Tax Trust Fund for such fiscal year would be distributed to taxing entities pursuant to clause (iv) above.
Additionally, regardless of whether Redevelopment Property Tax Trust Fund moneys are sufficient to pay all Senior Payments and enforceable obligations, the County Auditor-Controller will disburse moneys to taxing agencies for Senior Payments prior to disbursing any moneys to the Successor Agency for debt service on the 2024 Bonds or other enforceable obligations unless the Successor Agency files a Notice of Insufficiency in accordance with the procedure described in the Dissolution Act. The Successor Agency has not taken the required actions to subordinate the amounts due under the Senior Pass-Through Agreements or the Statutory Pass-Through Amounts to the 2024 Bonds and therefore the such amounts are not available to pay to debt service on the 2024 Bonds and Parity Debt. See the captions “SECURITY FOR THE 2024 BONDS—Pass-Through Agreements,” “—Statutory Pass-Through Amounts,”—33676 Amounts,”” and “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection Procedures—Property Tax Administrative Costs.” 50 4887-4047-9672v4/200456-0005
The Successor Agency covenants in the Indenture that it will comply with all of the requirements of the Redevelopment Law and the Dissolution Act, including without limitation to file all required statements and hold all public hearings required under the Dissolution Act to assure compliance by the Successor Agency with its covenants under the Indenture. Further, the Successor Agency covenants in the Indenture to take all actions required under the Dissolution Act to include: (i) scheduled debt service on the 2024 Bonds and any Parity Debt and any amount required under the Indenture to replenish the Reserve Account established thereunder (including amounts payable to any Insurer as issuer of a Qualified Reserve Account Credit Instrument) or the reserve account established under any Parity Debt Instrument, and (ii) amounts due to any Insurer (including the 2024 Insurer) under the Indenture, under any Parity Debt Instrument or under an insurance or surety bond agreement in Recognized Obligation Payment Schedules for each ROPS Period so as to enable the County AuditorController to distribute from the Redevelopment Property Tax Trust Fund to the Successor Agency’s Redevelopment Obligation Retirement Fund on each January 2 and June 1 amounts required for the Successor Agency to pay principal of, and interest on, the 2024 Bonds coming due in the respective ROPS Period to pay amounts owed to any Insurer, as well as the other amounts set forth above. The Successor Agency will also covenant in the Indenture to file a Notice of Insufficiency prior to each RPTTF distribution date as needed to ensure allocation to the Successor Agency of sufficient amounts from the RPTTF to enable the Successor Agency to pay debt service on the 2024 Bonds.. See the caption “SECURITY FOR THE BONDS—Recognized Obligation Payment Schedule” and Appendix B.
The Dissolution Act also imposes certain penalties in the event that the Successor Agency does not timely submit a Recognized Obligation Payment Schedule for each fiscal year. Specifically, a Recognized Obligation Payment Schedule must be submitted by the Successor Agency, after approval by the Oversight Board, to the County Administrative Officer, the County Auditor-Controller, the DOF and the State Controller by February 1 in each year with respect to the following Fiscal Year. If the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule by such deadline, the City will be subject to a civil penalty equal to $10,000 per day for every day that the schedule is not submitted. Additionally, the Successor Agency’s administrative cost allowance will be reduced by 25% for any fiscal year for which the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule within 10 days of the February 1 deadline. If the Successor Agency fails to submit a Recognized Obligation Payment Schedule by the February 1 deadline, any creditor of the Successor Agency or DOF or any affected taxing entity shall have standing to, and may request a writ of mandate to, require the Successor Agency to immediately perform this duty. The Successor Agency has submitted each prior Recognized Obligation Payment Schedule on or before the statutory deadline.
Last and Final Recognized Obligation Payment Schedule
SB 107 amended the Dissolution Act to permit certain successor agencies with limited remaining obligations to submit a Last and Final ROPS for approval by the oversight board and DOF. The Last and Final ROPS must list the remaining enforceable obligations of the successor agency, including the total outstanding obligation amount and a schedule of remaining payments for each enforceable obligation. The Last and Final ROPS shall also establish the maximum amount of Redevelopment Property Tax Trust Funds to be distributed to the successor agency for each remaining fiscal year until all obligations have been fully paid.
Any revenues, interest, and earnings of the successor agency, including proceeds from the disposition of real property, that are not authorized for use pursuant to the approved Last and Final ROPS shall be remitted to the county auditor-controller for distribution to the affected taxing entities. A successor agency shall not expend more than the amount approved for each enforceable obligation listed on the approved Last and Final ROPS and once the successor agency has received Redevelopment Property Tax Trust Fund moneys equal to the amount of the total outstanding obligations approved in the Last and Final ROPS, the county auditorcontroller will not allocate further Redevelopment Property Tax Trust Fund moneys to the successor agency.
Successor agencies may only amend an approved Last and Final ROPS twice. If the Successor Agency prepares and obtains DOF approval of a Last and Final ROPS and subsequently amends the Last and Final ROPS 51 4887-4047-9672v4/200456-0005
two times, the Successor Agency may be unable to make unexpected or unscheduled reserve deposits or payments due to the Insurers of 2024 Bonds or other Parity Debt.
See the caption “SECURITY FOR THE 2024 BONDS—Last and Final Recognized Obligation Payment Schedule” for a discussion of the requirements for a Last and Final ROPS and the mechanics for allocation of Redevelopment Property Tax Trust Fund moneys pursuant to an approved Last and Final ROPS.
The Successor Agency does not currently expect to file a Last and Final ROPS. In addition, the Successor Agency has covenanted in the Indenture not to submit to the Oversight Board or the California Department of Finance a request for the final amendment permitted for its Last and Final ROPS without the prior written consent of the 2024 Insurer unless all amounts that could become due to the 2024 Insurer are included as a line item on the Last and Final ROPS, as amended.
Parity and Subordinate Debt
The Indenture permits the issuance by the Successor Agency of certain refunding indebtedness which may have a lien upon the Tax Revenues on parity with the lien of the 2024 Bonds. The Successor Agency has covenanted not to issue any additional obligations with a lien on Pledged Tax Revenues senior to the lien of the 2024 Bonds. See “SECURITY FOR THE 2024 BONDS—Limitations on Additional Indebtedness” for a description of the conditions precedent to issuance of such additional obligations. The Indenture does not limit the issuance of tax allocation bonds or other indebtedness secured by a pledge of tax increment revenues subordinate to the pledge of Pledged Tax Revenues securing the 2024 Bonds.
Challenges to Dissolution Act
Several successor agencies, cities and other entities have filed judicial actions challenging the legality of various provisions of the Dissolution Act. One such challenge is an action filed on August 1, 2012, by Syncora Guarantee Inc. and Syncora Capital Assurance Inc. (collectively, “Syncora”) against the State, the State Controller, the State Director of Finance, and the County Auditor-Controller on his own behalf and as the representative of all other County Auditors in the State (Superior Court of the State of California, County of Sacramento, Case No. 34-2012-80001215). Syncora is a monoline financial guaranty insurer domiciled in the State of New York and has provided bond insurance and other related insurance policies for bonds issued by former California redevelopment agencies.
The complaint alleged that the Dissolution Act, and specifically the “Redistribution Provisions” thereof (i.e., California Health and Safety Code sections 34172(d), 34174, 34177(d), 34183(a)(4), and 34188) violate the “contract clauses” of the United States and California Constitutions (U.S. Const. art. 1, §10, cl.1; Cal. Const. art. 1, §9) because they unconstitutionally impair the contracts among the former redevelopment agencies, bondholders and Syncora. The complaint also alleged that the Redistribution Provisions violate the “Takings Clauses” of the United States and California Constitutions (U.S. Const. amend. V; Cal Const. art. 1 §19) because they unconstitutionally take and appropriate bondholders’ and Syncora’s contractual right to critical security mechanisms without just compensation.
After hearing by the Sacramento County Superior Court on May 3, 2013, the Superior Court ruled that Syncora’s constitutional claims based on contractual impairment were premature. The Superior Court also held that Syncora’s takings claims, to the extent based on the same arguments, were also premature. Pursuant to a Judgment stipulated to by the parties, the Superior Court on October 3, 2013, entered its order dismissing the action. The Judgment, however, provides that Syncora preserves its rights to reassert its challenges to the Dissolution Act in the future. The Successor Agency does not guarantee that any reassertion of challenges by Syncora or that the final results of any of the judicial actions brought by others challenging the Dissolution Act will not result in an outcome that may have a material adverse effect on the Successor Agency’s ability to timely pay debt service on the 2024 Bonds.
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Bankruptcy and Foreclosure
The payment of the property taxes from which Tax Revenues are derived and the ability of the County to foreclose the lien of a delinquent unpaid tax may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights (such as the Soldiers’ and Sailors’ Relief Act of 1940 discussed below) or by the laws of the State relating to judicial foreclosure. In addition, the prosecution of a foreclosure action could be delayed due to crowded local court calendars or delays in the legal process. The various legal opinions to be delivered concurrently with the delivery of the 2024 Bonds (including Bond Counsel’s approving legal opinions) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases.
Although bankruptcy proceedings would not cause the liens to become extinguished, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings because federal bankruptcy laws may provide for an automatic stay of foreclosure and sale of tax sale proceedings. Such delay would increase the possibility of delinquent tax installments not being paid in full and thereby increase the likelihood of a delay or default in payment of the principal of and interest on the 2024 Bonds. Moreover, if the value of the subject property is less than the lien of property taxes, such excess could be treated as an unsecured claim by the bankruptcy court. Further, should remedies be exercised under the federal bankruptcy laws, payment of property taxes may be subordinated to bankruptcy law priorities. Thus, certain claims may have priority over property taxes in a bankruptcy proceeding even though they would not outside of a bankruptcy proceeding.
In addition, the United States Bankruptcy Code might prevent moneys on deposit in the Redevelopment Obligation Retirement Fund from being applied to pay interest on the 2024 Bonds and/or to redeem Bonds if bankruptcy proceedings were brought by or against a landowner and if the court found that such landowner had an interest in such moneys within the meaning of Section 541(a)(1) of the United States Bankruptcy Code.
Other laws generally affecting creditors’ rights or relating to judicial foreclosure may affect the ability to enforce payment of property taxes or the timing of enforcement thereof. For example, the Soldiers and Sailors Civil Relief Act of 1940 affords protections such as a stay in enforcement of the foreclosure covenant, a sixmonth period after termination of military service to redeem property sold to enforce the collection of a tax or assessment and a limitation on the interest rate on the delinquent tax or assessment to persons in military service if a court concludes that the ability to pay such taxes or assessments is materially affected by reason of such service.
Estimated Revenues
In estimating that Pledged Tax Revenues will be sufficient to pay debt service on the 2024 Bonds, the Successor Agency has made certain assumptions with regard to present and future assessed valuation in the Project Area, future tax rates and percentage of taxes collected. The Successor Agency believes these assumptions to be reasonable, but there is no assurance that these assumptions will be realized. To the extent that the assessed valuation and the tax rates are less than expected, the Pledged Tax Revenues available to pay debt service on the 2024 Bonds will be less than those projected and such reduced Pledged Tax Revenues may be insufficient to provide for the payment of principal of, premium (if any) and interest on the 2024 Bonds.
Hazardous Substances
While governmental taxes, assessments, and charges are a common claim against the value of a taxable parcel, other less common claims may be relevant. One example is a claim with regard to a hazardous substance.
The Successor Agency is not aware of the presence of any federally or state classified hazardous substances in violation of any environmental laws, located within the Project Area; however, it is possible such materials do currently exist and that the Successor Agency is not aware of them. 53 4887-4047-9672v4/200456-0005
The presence of hazardous substances on a parcel may result in a reduction in the value of a parcel. In general, the owners and operators of a taxable parcel may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but State and local laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the taxable parcels be affected by a hazardous substance is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of the property that is realizable upon a delinquency and foreclosure.
Further, it is possible that liabilities may arise in the future with respect to any of the taxable parcels resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not only from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of a taxable parcel that is realizable upon a delinquency.
Natural Disasters
Seismic Risks. The City, like most regions in the State, is located in an area of seismic activity and, therefore, could be subject to potentially destructive earthquakes. According to the City’s 2008 General Plan Update (the “General Plan Update”), the City lies within a relatively seismically-quiet area. Neither the City nor the County are on the State Geological Survey’s list of cities and counties affected by Alquist Priolo Earthquake Fault Zones as of May 1, 1999, as reiterated in the California Geological Survey in May 2006. This means these areas are not subject to surface fault rupture. The nearest faults are the Sierra Nevada Fault Zone on the east side of the Sierra Nevada Mountains about 60 miles to the east, the San Joaquin Fault about 75 miles to the west/northwest near Los Banos, and the San Andreas Fault about 75 miles to the southwest near Parkfield. In 1983, the Coalinga area (about 60 miles to the west-southwest of the City) experienced an earthquake measuring
6.7 on the Richter scale on a previously unknown “blind” thrust fault. A “blind” thrust fault is one which does not produce a surface rupture and, therefore, shows no evidence of its presence at the surface. The General Plan Update identifies the risk of primary hazards due to groundshaking as low because of the distance of the City from seismic faults. Although new buildings in the City are constructed to prevent loss of life as a result of an earthquake, older buildings, especially un-reinforced masonry buildings, could collapse, causing injury and loss of life.
Aside from structural damage, earthquake activity can produce other types of adverse effects. The first type is ground failure such as landslides, subsidence/settlement, and liquefaction. The General Plan Update identifies the risk of such secondary hazards as follows: landslides, minimal; subsidence/settlement, low to moderate; and liquefaction, low. A second type of secondary hazard would be from a seiche (an earthquakeinduced wave in a lake, reservoir, or harbor). The General Plan Update identifies the risk of seiching as minimal, since there are no bodies of water in or near the City large enough to be subject to a seiche. A third type of secondary hazard would be caused by damage to a dam that results in dam failure. Pine Flat Dam on the Kings River and Terminus Dam on the Kaweah River could produce flooding should they fail. There are requirements that the owners of dams prepare maps showing areas that would be flooded should a dam fail. Dam failure inundation maps are available for these dams and, according to the General Plan Update, indicate that the City would not flood if these dams failed. Areas to the west of the City in the northwest portion of the City’s General Plan area would be within the 1-2 hour inundation zone if Pine Flat Dam or Terminus Dam failed. 54 4887-4047-9672v4/200456-0005
Flood Risks. According to the General Plan Update, portions of the City are within the 100-year floodplain as identified by the Federal Emergency Management Agency on its Flood Insurance Rate Map. Much of the flood area in the City roughly follows the course of sloughs or creeks that originally flowed through the area but were diverted into irrigation ditches as the area was settled. The General Plan Update concludes that the City would not flood if the dams in the region, Pine Flat Dam on the Kings River and Terminus Dam on the Kaweah River, failed. However, areas to the west of the City in the northwest portion of the City’s General Plan area would be within the 1-2 hour inundation zone if Pine Flat Dam or Terminus Dam failed.
Fire Risks. According to the General Plan Update, wildland fires resulting from both man-made and natural causes can occur in brush, or grasslands, primarily in sparsely developed or existing open space lands.
Structures and urban development may also be threatened or destroyed in the area of wildland fires. The City and its immediately surrounding areas are developed for urban and agricultural uses and are therefore not subject to wildland fires.
Structural fires usually result from man-made causes and threaten industrial, residential and commercial structures, especially those built before building and fire codes were established. These substandard structures represent the highest potential for injury, death, or loss of property. Enforcement of the City’s zoning codes, as well as standard fire codes, should help to minimize risks of and from urban fires.
For more information, see the “Dinuba General Plan Update, Background Report” on file with the City Clerk. Natural disasters, including floods and earthquakes, could damage improvements and/or property in the Project Area, or impair the ability of landowners within the Project Area to develop their properties or to pay property taxes.
The property within the Project Area may also be at risk from other events of force majeure, such as damaging storms, fires and explosions, strikes, sabotage, pandemics, riots and spills of hazardous substances, among other events. The Successor Agency cannot predict what force majeure events may occur in the future.
Climate Change
Climate change, including change caused by human activities, may have adverse effects on the Project Area. Climate change can also result in more variable weather patterns throughout the State, which can lead to longer and more severe droughts as well as increased risk of fire, flooding and a rise in sea levels. The City considers the potential effects of climate change in its planning.
Projections of the impacts of global climate change on the City and the Project Area are complex and depend on many factors that are outside the Successor Agency’s control. The various scientific studies that forecast the amount and timing of adverse impacts of climate change are based on assumptions contained in such studies, but actual events may vary materially. Also, the scientific understanding of climate change and its effects continues to evolve. Accordingly, while the City has considered climate change in its planning, the Successor Agency is unable to forecast with certainty when adverse impacts of climate change will occur or the extent of such impacts. While the impacts of climate change may be mitigated by the City’s past and future investment in adaptation strategies, the Successor Agency can give no assurance about the net effects of those strategies and whether the City will be required to take additional adaptive mitigation measures.
The Successor Agency is unable to predict whether impacts of climate change will occur while the 2024 Bonds are outstanding, and if any such events occur, whether there will be an adverse impact, material or otherwise, on Tax Revenues.
Cybersecurity
The City and the Successor Agency, like many other public and private entities, rely on computer and other digital networks and systems to conduct their operations. The City and the Successor Agency are 55 4887-4047-9672v4/200456-0005
potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. No assurance can be given that the efforts of the City or the Successor Agency to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City or the Successor Agency, or the administration of the 2024 Bonds. The City and the Successor Agency are also reliant on other entities and service providers in connection with the administration of the 2024 Bonds, including without limitation, the County and the Trustee. No assurance can be given that the City, the Successor Agency and these other entities will not be affected by cyber threats and attacks in a manner that may affect the 2024 Bond owners.
Changes in the Law
There can be no assurance that the State electorate will not at some future time adopt initiatives or that the State Legislature will not enact legislation that will amend the Dissolution Act, the Redevelopment Law or other laws or the Constitution of the State resulting in a reduction of Tax Revenues, which could have an adverse effect on the Successor Agency’s ability to pay debt service on the 2024 Bonds.
Investment Risk
Funds held under the Indenture are required to be invested in Permitted Investments as provided under the Indenture. See Appendix B for a summary of the definition of Permitted Investments. The funds and accounts of the Successor Agency, into which a portion of the proceeds of the 2024 Bonds will be deposited and into which Tax Revenues are deposited, may be invested by the Successor Agency in any investment authorized by law. All investments, including the Permitted Investments and those authorized by law from time to time for investments by municipalities, contain a certain degree of risk. Such risks include, but are not limited to, a lower rate of return than expected and loss or delayed receipt of principal. See also the caption “—Bankruptcy and Foreclosure.”
Secondary Market
There can be no guarantee that there will be a secondary market for the 2024 Bonds, or, if a secondary market exists, that the 2024 Bonds can be sold for any particular price. Although the Successor Agency has committed to provide certain financial and operating information on an annual basis, there can be no assurance that such information will be available to Owners of the 2024 Bonds on a timely basis. See the caption “CONCLUDING INFORMATION—Continuing Disclosure” and Appendix G. Any failure to provide annual financial information, if required, does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon the then prevailing circumstances. Such prices could be substantially different from the original purchase price.
No Validation Proceeding Undertaken
Code of Civil Procedure Section 860 authorizes public agencies to institute a process, otherwise known as a “validation proceeding,” for purposes of determining the validity of a resolution or any action taken pursuant thereto. Section 860 authorizes a public agency to institute validation proceedings in cases where another statute authorizes its use. Relevant to the 2024 Bonds, Government Code Section 53511 authorizes a local agency to “bring an action to determine the validity of its bonds, warrants, contracts, obligations or evidences of indebtedness.” Pursuant to Code of Civil Procedure Section 870, a final favorable judgment issued in a validation proceeding shall, notwithstanding any other provision of law, be forever binding and conclusive, as to all matters therein adjudicated or which could have been adjudicated, against all persons: “The judgment shall permanently enjoin the institution by any person of any action or proceeding raising any issue as to which the judgment is binding and conclusive.”
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The Successor Agency has not undertaken or endeavored to undertake any validation proceeding in connection with the issuance of the 2024 Bonds. The Successor Agency and Bond Counsel have relied on the provisions of AB 1484 authorizing the issuance of the 2024 Bonds and specifying the related deadline for any challenge to the 2024 Bonds to be brought. Specifically, Section 34177.5(e) of the Dissolution Act provides that notwithstanding any other law, an action to challenge the issuance of bonds (such as the 2024 Bonds), the incurrence of indebtedness, the amendment of an enforceable obligation, or the execution of a financing agreement authorized under Section 34177.5, must be brought within 30 days after the date on which the oversight board approves the resolution of the successor agency approving such financing. Such challenge period expired with respect to the 2024 Bonds and the Oversight Board Resolution on May 19, 2024.
It is possible that the definition, levy, collection, distribution, or availability of Tax Revenues could be affected by changes in law or judicial decisions relating to the dissolution of redevelopment agencies. However, any action by a court to invalidate provisions of the Dissolution Act required for the timely payment of principal of, and interest on, the 2024 Bonds could be subject to issues regarding unconstitutional impairment of contracts and unconstitutional taking without just compensation. The Successor Agency believes this constitutional provision would provide some protection against the adverse consequences upon the Successor Agency and the availability of Tax Revenues for the payment of debt service on the 2024 Bonds in the event of successful challenges to the Dissolution Act or portions thereof. However, the Successor Agency provides no assurance that any other lawsuit challenging the Dissolution Act or portions thereof will not result in an outcome that may have a detrimental effect on the Successor Agency’s ability to timely pay debt service on the 2024 Bonds.
IRS Audit of Tax-Exempt Bond Issues
The Internal Revenue Service has a program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the 2024 Bonds will be selected for audit by the Internal Revenue Service. It is also possible that the market value of the 2024 Bonds might be affected as a result of such an audit of the 2024 Bonds (or by an audit of similar municipal obligations).
Loss of Tax Exemption
As discussed under the caption “TAX MATTERS,” in order to maintain the exclusion from gross income for federal income tax purposes of the interest on the 2024 Bonds, the City and the Successor Agency have covenanted in the Indenture and the Tax Certificate relating to the 2024 Bonds not to take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of interest on the 2024 Bonds under Section 103 of the Internal Revenue Code of 1986, as amended.
Interest on the 2024 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance, as a result of acts or omissions of the City or the Successor Agency subsequent to the issuance of the 2024 Bonds in violation of such covenants with respect to the 2024 Bonds. Should such an event of taxability occur, the 2024 Bonds are not subject to redemption by reason thereof and will remain outstanding until maturity or unless earlier redeemed pursuant to the redemption provisions of the Indenture.
Bonds Are Limited Obligations
Neither the faith and credit nor the taxing power of the Successor Agency (except to the limited extent set forth in the Indenture), the City, the State or any political subdivision thereof is pledged to the payment of the 2024 Bonds. The 2024 Bonds are special obligations of the Successor Agency; and, except as provided in the Indenture, they are payable solely from Tax Revenues. Tax Revenues could be insufficient to pay debt service on the 2024 Bonds as a result of delinquencies in the payment of property taxes or the insufficiency of proceeds derived from the sale of land within the Successor Agency following a delinquency in the payment of the applicable property taxes. As discussed under the caption “PROPERTY TAXATION IN CALIFORNIA— Property Tax Collection Procedures—Delinquencies,” under its current policies, the County Auditor-Controller distributes 100% of tax increment revenues allocated to each redevelopment successor agency in the County without regard to delinquencies in the payment of property taxes. However, there can be no assurance that such 57 4887-4047-9672v4/200456-0005
policies will not be changed in the future. The Successor Agency has no obligation to pay debt service on the 2024 Bonds in the event of insufficient Tax Revenues, except to the extent that money is available for such purpose in the Redevelopment Obligation Retirement Fund, the Debt Service Fund and the Reserve Account.
Bond Insurance
In the event of default of the payment of the scheduled principal of or interest on the 2024 Bonds when all or some becomes due, the Trustee on behalf of any owner of the 2024 Bonds shall have a claim under the Policy for such payments. In the event the 2024 Insurer makes a payment to Owners of the 2024 Bonds under the Policy, the 2024 Insurer will be subrogated to the rights of such Owners of the 2024 Bonds to direct and consent to remedies with respect to the 2024 Bonds. The 2024 Insurer may direct and must consent to any remedies with respect to the 2024 Bonds and the 2024 Insurer’s consent may be required in connection with amendments to any applicable documents relating to the 2024 Bonds. See Appendix B – “SUMMARY OF THE INDENTURE—SECURITY OF BONDS; FLOW OF FUNDS—Provisions Relating to 2024 Insurance Policy.” The 2024 Insurer is expected to insure the 2024 Bonds and will therefore have the ability to direct the actions of the Trustee give consents and waivers and take other actions without regard to the views of the owners of the 2024 Bonds. As a result, Owners of the 2024 Bonds may be limited in the rights and remedies they are able to exercise in the event of a default by the Successor Agency under the Indenture. The 2024 Insurer may have different business and other interests than the Owners of the 2024 Bonds.
The long-term ratings on the 2024 Bonds are dependent in part on the financial strength of the 2024 Insurer and its claims paying ability. The 2024 Insurer’s financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance is given that the long-term ratings of the 2024 Insurer and the ratings on the 2024 Bonds will not be subject to downgrade and such event could adversely affect the market price of the 2024 Bonds or the marketability (liquidity) for the Bonds. See “CONCLUDING INFORMATION—Ratings” herein.
The obligations of the 2024 Insurer are unsecured contractual obligations and in an event of default by the 2024 Insurer, the remedies available may be limited by applicable bankruptcy law or state law related to insolvency of insurance companies.
Neither the Successor Agency nor the Underwriter has made independent investigation into the claims paying ability of the 2024 Insurer and no assurance or representation regarding the financial strength or projected financial strength of the 2024 Insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the Successor Agency to make the payments on the 2024 Bonds and the claims paying ability of the 2024 Insurer, particularly over the life of the investment. See “BOND INSURANCE” herein for further information regarding the 2024 Insurer and the Policy, which includes further instructions for obtaining current financial information concerning the 2024 Insurer.
Limitations on Remedies
Remedies available to the Owners of the 2024 Bonds may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the 2024 Bonds or to preserve the taxexempt status of the 2024 Bonds.
Bond Counsel has limited its opinion as to the enforceability of the 2024 Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws affecting generally the enforcement of creditors’ rights, by equitable principles and by the exercise of judicial discretion. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the Owners. 58 4887-4047-9672v4/200456-0005
Enforceability of the rights and remedies of the Owners of the 2024 Bonds, and the obligations incurred by the Successor Agency, may become subject to the United States Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect, equity principles which may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the federal Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose and the limitations on remedies against governmental entities in the State. See the caption “—Bankruptcy and Foreclosure.”
No Acceleration Provision
The Indenture does not contain a provision allowing for the acceleration of the 2024 Bonds following an Event of Default under the terms of the 2024 Bonds or the Indenture or in the event interest on the 2024 Bonds becomes included in gross income for federal income tax purposes. See Appendix B.
TAX MATTERS
In the opinion of Stradling Yocca Carlson & Rauth, LLP, Newport Beach, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the 2024 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals.
In the further opinion of Bond Counsel, interest (and original issue discount) on the 2024 Bonds is exempt from State of California personal income tax. However, it should be noted that for tax years beginning after December 31, 2022, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the “Code”), generally certain corporations with more than $1,000,000,000 of average annual adjusted financial statement income, interest (and original issue discount) with respect to the 2024 Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed by Section 55 of the Code on such corporations.
Bond Counsel’s opinion as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the 2024 Bonds is based upon certain representations of fact and certifications made by the Successor Agency and others and is subject to the condition that the Successor Agency comply with all requirements of the Code that must be satisfied subsequent to the issuance of the 2024 Bonds to assure that interest (and original issue discount) on the 2024 Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the 2024 Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the 2024 Bonds. The Successor Agency has covenanted to comply with all such requirements.
In the opinion of Bond Counsel, the difference between the issue price of a 2024 Bond (the first price at which a substantial amount of the 2024 Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity of such 2024 Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Beneficial Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by a Beneficial Owner will increase the Beneficial Owner’s basis in the applicable 2024 Bond. The amount of original issue discount that accrues to the Beneficial Owner of a 2024 Bond is excluded from the gross income of such Beneficial Owner for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals, and is exempt from State of California personal income tax.
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The amount by which a 2024 Bond Owner’s original basis for determining loss on sale or exchange in the applicable 2024 Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the Code; such amortizable bond premium reduces the 2024 Bond Owner’s basis in the applicable 2024 Bond (and the amount of tax-exempt interest received with respect to the 2024 Bonds), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of bond premium may result in a 2024 Bond Owner realizing a taxable gain when a 2024 Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the 2024 Bond to the Owner. Purchasers of the 2024 Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable bond premium.
The IRS has initiated an expanded program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the 2024 Bonds will be selected for audit by the IRS. It is also possible that the market value of the 2024 Bonds might be affected as a result of such an audit of the 2024 Bonds (or by an audit of similar municipal obligations). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the Code (or interpretation thereof) subsequent to the issuance of the 2024 Bonds to the extent that it adversely affects the exclusion from gross income of interest (and original issue discount) on the 2024 Bonds or their market value.
SUBSEQUENT TO THE ISSUANCE OF THE 2024 BONDS THERE MIGHT BE FEDERAL,
STATE OR LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY CHANGES TO OR
INTERPRETATIONS OF FEDERAL, STATE OR LOCAL LAW) THAT AFFECT THE FEDERAL, STATE OR LOCAL TAX TREATMENT OF THE 2024 BONDS, INCLUDING THE IMPOSITION OF
ADDITIONAL FEDERAL INCOME OR STATE TAXES ON OWNERS OF TAX-EXEMPT STATE OR LOCAL OBLIGATIONS, SUCH AS THE 2024 BONDS. THESE CHANGES COULD ADVERSELY AFFECT THE MARKET VALUE OR LIQUIDITY OF THE 2024 BONDS. NO ASSURANCE CAN BE GIVEN THAT SUBSEQUENT TO THE ISSUANCE OF THE 2024 BONDS STATUTORY CHANGES WILL
NOT BE INTRODUCED OR ENACTED OR JUDICIAL OR REGULATORY INTERPRETATIONS WILL NOT OCCUR HAVING THE EFFECTS DESCRIBED ABOVE. BEFORE PURCHASING ANY OF THE 2024 BONDS, ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS
REGARDING POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY CHANGES OR INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE 2024 BONDS.
Bond Counsel’s opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture and the Tax Certificate relating to the 2024 Bonds permit certain actions to be taken or to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income of interest (and original issue discount) for federal income tax purposes with respect to any 2024 Bond if any such action is taken or omitted based upon the advice of counsel other than Stradling Yocca Carlson & Rauth, LLP.
Although Bond Counsel has rendered an opinion that interest (and original issue discount) on the 2024 Bonds is excluded from gross income for federal income tax purposes provided that the Successor Agency continues to comply with certain requirements of the Code, the ownership of the 2024 Bonds and the accrual or receipt of interest (and original issue discount) on the 2024 Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before purchasing any of 2024 Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences relating to the 2024 Bonds.
Should interest (and original issue discount) on the 2024 Bonds become includable in gross income for federal income tax purposes, the 2024 Bonds are not subject to early redemption and will remain outstanding until maturity or until redeemed in accordance with the Indenture. 60 4887-4047-9672v4/200456-0005
A complete copy of the proposed form of opinion of Bond Counsel is attached hereto as Appendix C.
CONCLUDING INFORMATION
Underwriting
The 2024 Bonds are being purchased by Oppenheimer & Co., Inc. (the “Underwriter”) pursuant to a Bond Purchase Agreement, dated ________, 2024 (the “Purchase Agreement”), by and between the Underwriter and the Successor Agency. The Underwriter has agreed to purchase the 2024 Bonds at a price of $__________ (being the aggregate principal amount thereof, [plus/less] an original issue [premium/discount] of $___________ and less an Underwriter’s discount of $____________). The Purchase Agreement provides that the Underwriter will purchase all of the 2024 Bonds if any are purchased. The obligation to make such purchase is subject to certain terms and conditions set forth in the Purchase Agreement, the approval of certain legal matters by counsel and certain other conditions.
The initial public offering prices stated on the inside front cover page of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the 2024 Bonds to certain dealers (including dealers depositing Bonds into investment trusts), dealer banks, banks acting as agents and others at prices lower than said public offering prices.
Municipal Advisor
Urban Futures, Inc., Walnut Creek, California, has served as municipal advisor (“Municipal Advisor”) to the Successor Agency in connection with the 2024 Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities. Compensation for the Municipal Advisor’s services is entirely contingent upon the sale and delivery of the 2024 Bonds.
Legal Opinion
The opinion of Stradling Yocca Carlson & Rauth, LLP, Bond Counsel, approving the validity of the 2024 Bonds, stating that interest on the 2024 Bonds is exempt from federal personal income taxes and interest on the 2024 Bonds is exempt from California personal income taxes under present State income tax laws will be furnished to the Underwriter at the time of delivery of the 2024 Bonds at the expense of the Successor Agency.
Compensation for Bond Counsel’s services is entirely contingent upon the sale and delivery of the 2024 Bonds.
A copy of the proposed form of Bond Counsel’s final approving opinion with respect to the 2024 Bonds is attached hereto as Appendix C. The legal opinion is only as to legality and is not intended to be nor is it to be interpreted or relied upon as a disclosure document or an express or implied recommendation as to the investment quality of the 2024 Bonds.
In addition, certain legal matters will be passed on for the Underwriter by Kutak Rock, LLP, Irvine, California, as Underwriter’s Counsel, for the Successor Agency by the City Attorney of the City, as counsel to the Successor Agency, and by Stradling Yocca Carlson & Rauth, LLP, Newport Beach, California, as Disclosure Counsel, for the Trustee by its counsel and for the 2024 Insurer by its counsel. Compensation for Underwriter’s Counsel and Disclosure Counsel is entirely contingent upon the sale and delivery of the 2024 Bonds. 61 4887-4047-9672v4/200456-0005
Litigation
There is no action, suit or proceeding known to the Successor Agency to be pending and notice of which has been served upon and received by the Successor Agency, or threatened, restraining or enjoining the execution or delivery of the 2024 Bonds or the Indenture or in any way contesting or affecting the validity of the foregoing or any proceedings of the Successor Agency taken with respect to any of the foregoing, or which could materially adversely affect the Tax Revenues.
Ratings
In connection with the issuance and delivery of the 2024 Bonds, S&P Global Ratings, a Standard & Poor’s Financial Services, LLC business (“S&P”) is expected to assign its underlying municipal rating of “__” to the 2024 Bonds. S&P is also expected to assign the 2024 Bonds the rating of “AA” based upon the delivery of the Policy by the 2024 Insurer at the time of issuance of the 2024 Bonds. See the caption “BOND INSURANCE.”
There is no assurance that the credit ratings given to the 2024 Bonds will be maintained for any period of time or that the ratings may not be lowered or withdrawn entirely by S&P if, in the judgment of S&P, circumstances so warrant. Any downward revision or withdrawal of either of such ratings may have an adverse effect on the market price of the 2024 Bonds. Such ratings reflect only the views of S&P and an explanation of the significance of such ratings may be obtained from S&P. Generally, rating agencies base their ratings on information and materials furnished to them (which may include information and material from the Successor Agency which is not included in this Official Statement) and on investigations, studies and assumptions by the rating agencies.
Continuing Disclosure
The Successor Agency has covenanted in a Continuing Disclosure Certificate (the “Continuing Disclosure Certificate”) for the benefit of the holders and Beneficial Owners of the 2024 Bonds to provide certain financial information and operating data relating to the Successor Agency by March 31, or the date that is nine months after the end of the Successor Agency’s fiscal year if the Successor Agency’s fiscal year is changed (the Successor Agency’s fiscal year currently ends June 30) (the “Annual Report”), commencing with the report for fiscal year ending June 30, 2024, and to provide notices of the occurrence of certain enumerated events.
The Annual Report and the notices of enumerated events will be filed by the Successor Agency with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/. The specific nature of the information to be contained in the Annual Report and the notices of enumerated events are set forth in Appendix G. These covenants have been made in order to assist the Underwriter in complying with Rule 15c2-12(b)(5) promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”).
The Former Agency and the City have each previously entered into continuing disclosure undertakings under Rule 15c2-12. Within the past five years, the City and its affiliated entities failed to comply with these undertaking by filing the City’s audited financial statements late with respect to one or more obligations for fiscal year 2019, 2021 and 2022. In addition, for fiscal year 2019, the City and its affiliated entities were late in filing the annual report for such fiscal year. All of the filings have since been made.
The Successor Agency has taken steps to ensure future compliance with its continuing disclosure obligations by adopting disclosure policies and procedures and by retaining Urban Futures, Inc. to serve as dissemination agent to the Successor Agency. Successor Agency staff has also received training relating to the Successor Agency’s continuing disclosure obligations.
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Miscellaneous
All of the preceding summaries of the Indenture, the Bond Law, the Dissolution Act, the Redevelopment Law, other applicable legislation, the Redevelopment Plan for the Project Area, agreements and other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the Successor Agency for further information in connection therewith.
This Official Statement does not constitute a contract with the purchasers of the 2024 Bonds. Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized.
The execution and delivery of this Official Statement by the Executive Director of the Successor Agency, has been duly authorized by the Successor Agency.
SUCCESSOR AGENCY TO THE
DINUBA REDEVELOPMENT AGENCY
By:
Executive Director
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APPENDIX A
FISCAL CONSULTANT REPORT
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APPENDIX B
SUMMARY OF THE INDENTURE
The following is a brief summary of certain provisions of the Indenture of Trust (the “Indenture”) authorizing the 2024 Bonds that are not otherwise described in the text of this Official Statement. Such summary is not intended to be definitive, and reference is made to the actual Indenture (copies of which may be obtained from the Trustee) for the complete terms thereof.
[TO COME]
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APPENDIX C
FORM OF BOND COUNSEL OPINION
Upon issuance of the Bonds, Stradling Yocca Carlson & Rauth, LLP, Bond Counsel, proposes to render its final approving opinion in substantially the following form:
_____________, 2024
Successor Agency to the Dinuba Redevelopment Agency
405 E. El Monte
Dinuba, California 93618
Re: Successor Agency to the Dinuba Redevelopment Agency Tax Allocation Refunding Bonds, Series 2024
Ladies and Gentlemen:
We have examined a certified copy of the record of the proceedings of the Successor Agency to the Dinuba Redevelopment Agency (the “Successor Agency”) relative to the issuance of the $__________ Successor Agency to the Dinuba Redevelopment Agency Tax Allocation Refunding Bonds, Series 2024 (the “2024 Bonds”) dated the date hereof, and such other information and documents as we consider necessary to render this opinion. In rendering this opinion, we have relied upon certain representations of fact and certifications made by the Successor Agency, the initial purchaser of the 2024 Bonds and others. We have not undertaken to verify through independent investigation the accuracy of the representations and certifications relied upon by us.
The 2024 Bonds are being issued pursuant to an Indenture of Trust (the “Indenture”), dated as of __________ 1, 2024 by and between the Successor Agency and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). Capitalized terms not defined herein shall have the meanings set forth in the Indenture.
Based on our examination as Bond Counsel of existing law, certified copies of such legal proceedings and such other proofs as we deem necessary to render this opinion, we are of the opinion, as of the date hereof and under existing law, that:
1. The 2024 Bonds have been duly and validly authorized by the Successor Agency and are legal, valid and binding special obligations of the Successor Agency, secured and payable solely from Pledged Tax Revenues (as such term is defined in the Indenture) and other sources as and to the extent provided for in the Indenture. The 2024 Bonds are special obligations of the Successor Agency but are not a debt of the City of Dinuba, the County of Tulare, the State of California or any other political subdivision thereof within the meaning of any constitutional or statutory limitation, and none of the City of Dinuba, the County of Tulare, the State of California or any other of its political subdivisions, except the Successor Agency, is liable for the payment thereof.
2. The Indenture has been duly authorized by the Successor Agency, is valid and binding upon the Successor Agency, is enforceable in accordance with its terms and creates a valid pledge of that which the Indenture purports to pledge.
3. Under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the 2024 Bonds is excluded from gross income for federal income tax purposes C-2
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and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals; however, it should be noted that for tax years beginning after December 31, 2022, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the “Code”), interest (and original issue discount) with respect to the 2024 Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed on such corporations.
4. Interest (and original issue discount) on the 2024 Bonds is exempt from State of California personal income tax.
5. The difference between the issue price of a 2024 Bond (the first price at which a substantial amount of the 2024 Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity with respect to such 2024 Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a 2024 Bond Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by a 2024 Bond owner will increase the 2024 Bond Owner’s basis in the applicable 2024 Bond. The amount of original issue discount that accrues to the 2024 Bond Owner is excluded from the gross income of such Owner for federal income tax purposes, is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and is exempt from State personal income tax.
6. The amount by which a 2024 Bond Owner’s original basis for determining loss on sale or exchange in the applicable 2024 Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the Code; such amortizable bond premium reduces the 2024 Bond Owner’s basis in the applicable 2024 Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of 2024 Bond premium may result in a 2024 Bond Owner realizing a taxable gain when a 2024 Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the 2024 Bond to the Owner. Purchasers of the 2024 Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable bond premium.
The opinions that are expressed herein as to the exclusion from gross income of interest (and original issue discount) on the 2024 Bonds are based upon certain representations of fact and certifications made by the Successor Agency and are subject to the condition that the Successor Agency comply with all requirements of the Code that must be satisfied subsequent to the issuance of the 2024 Bonds to assure that such interest (and original issue discount) on the 2024 Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the 2024 Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the 2024 Bonds. The Successor Agency has covenanted to comply with all such requirements.
The opinions that are expressed herein may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. Our engagement ends as of the date of issuance of the 2024 Bonds. The Indenture and the Tax Certificate relating to the 2024 Bonds permit certain actions to be taken or to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. No opinion is expressed herein as to the effect on the exclusion from gross income of interest (and original issue discount) on the 2024 Bonds for federal income tax purposes with respect to any 2024 Bond if any such action is taken or omitted based upon the opinion or advice of counsel other than ourselves. Other than expressly stated herein, we express no other opinion regarding tax consequences with respect to the 2024 Bonds.
The opinions that are expressed herein are based upon our analysis and interpretation of existing laws, regulations, rulings and judicial decisions and cover certain matters not directly addressed by such authorities.
We call attention to the fact that the rights and obligations under the Indenture and the 2024 Bonds are subject C-3
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to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws affecting creditors’ rights, to the application of equitable principles if equitable remedies are sought, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against public agencies in the State of California.
We express no opinion herein with respect to any indemnification, contribution, choice of law, choice of forum, penalty or waiver provisions contained in the Bonds or the Indenture, nor do we express any opinion with respect to the state or quality of title to any of the real or personal property described in the Indenture or the accuracy or sufficiency of the description of any such property contained therein.
Our opinions are limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction.
We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement relating to the 2024 Bonds or other offering material relating to the 2024 Bonds and expressly disclaim any duty to advise the owners of the 2024 Bonds with respect to matters contained in the Official Statement.
Respectfully submitted,
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APPENDIX D
BOOK-ENTRY ONLY SYSTEM
The information in this Appendix concerning The Depository Trust Company (“DTC”), New York, New York, and DTC’s book-entry system has been obtained from DTC and the Successor Agency takes no responsibility for the completeness or accuracy thereof. The Successor Agency cannot and does not give any assurances that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the 2024 Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the 2024 Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the 2024 Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the 2024 Bonds. The 2024 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the 2024 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+.
The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2024 Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2024 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the 2024 Bonds is discontinued.
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To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2024 Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2024 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the 2024 Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the 2024 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the 2024 Bonds within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Successor Agency as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal, premium (if any), and interest payments on the 2024 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Successor Agency or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee, or the Successor Agency, subject to any statutory or regulatory requirements as may be in effect from time to time. Principal, premium (if any), and interest payments with respect to the 2024 Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Successor Agency or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the 2024 Bonds at any time by giving reasonable notice to the Successor Agency or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, certificates representing the 2024 Bonds are required to be printed and delivered.
The Successor Agency may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, representing the 2024 Bonds will be printed and delivered to DTC in accordance with the provisions of the Indenture.
The information in this Appendix concerning DTC and DTC’s book-entry system has been obtained from sources that the Successor Agency believes to be reliable, but the Successor Agency takes no responsibility for the accuracy thereof.
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APPENDIX E
ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR
FISCAL YEAR ENDED JUNE 30, 2023
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APPENDIX F
STATE DEPARTMENT OF FINANCE LETTER
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APPENDIX G
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This CONTINUING DISCLOSURE CERTIFICATE (this “Disclosure Certificate”) is executed and delivered by the Successor Agency to the Dinuba Redevelopment Agency (the “Successor Agency”) in connection with the execution and delivery of the Successor Agency to the Dinuba Redevelopment Agency Tax Allocation Refunding Bonds, Series 2024 (the “Bonds”), issued in the initial aggregate principal amount of $__________. The Bonds are being executed and delivered pursuant to an Indenture of Trust, dated as of __________ 1, 2024, by and between the Successor Agency and U.S. Bank Trust Company, National Association, as trustee (the “Indenture”).
The Successor Agency covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Successor Agency for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule.
Section 2. Definitions. In addition to the definitions set forth above and in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report provided by the Successor Agency pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means each March 31, commencing March 31, 2025, or the date that is nine months after the end of the Successor Agency’s fiscal year if the Successor Agency’s fiscal year is changed (the Successor Agency’s fiscal year currently ends June 30). “Dissemination Agent” means Urban Futures, Inc., or any successor Dissemination Agent designated in writing by the Successor Agency and which has filed with the Successor Agency a written acceptance of such designation.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement executed by the Successor Agency in connection with the issuance of the Bonds.
“Participating Underwriter” means Oppenheimer & Co., Inc., the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as it may be amended from time to time.
Section 3. Provision of Annual Reports.
(a) The Successor Agency shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing March 31, 2025 with the report for the 2023-24 fiscal year, provide to the G-2
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MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the Successor Agency shall provide the Annual Report to the Dissemination Agent (if other than the Successor Agency). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the Successor Agency) has not received a copy of the Annual Report, the Dissemination Agent shall contact the Successor Agency to determine if the Successor Agency is in compliance with the previous sentence.
The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Successor Agency may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the Successor Agency’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The Successor Agency shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the Successor Agency hereunder.
(b) If the Successor Agency does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the Successor Agency shall provide (or cause the Dissemination Agent to provide) to the MSRB, in a timely manner and in an electronic format as prescribed by the MSRB, a notice of such fact.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the Successor Agency, file a report with the Successor Agency certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.
Section 4. Content of Annual Reports. The Annual Report shall contain or incorporate by reference the following:
(a) The Successor Agency’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Successor Agency’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) Other financial information and operating data relating to the Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project No. 2 contained in the Official Statement for the Bonds as follows:
(1) The amount of the distribution received by the Successor Agency for its enforceable obligations on or about the most recent January 2 preceding the date of the Annual Report from the Tulare County Auditor-Controller of property tax revenues from the Redevelopment Property Tax Trust Fund. (2) An update to Table 2 for the most recent Fiscal Year for which information is available. (3) An update to Table 3 for the most recent Fiscal Year for which information is available. (4) An update to Table 4 for the most recent Fiscal Year for which information is available.
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(c) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Successor Agency or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The Successor Agency shall clearly identify each such other document so included by reference.
Section 5. Reporting of Significant Events.
(a) The Successor Agency shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security. (7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the Successor Agency. (13) The consummation of a merger, consolidation, or acquisition involving the Successor Agency, or the sale of all or substantially all of the assets of the Successor Agency (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the Successor Agency, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the Successor Agency, any of which affect Bond holders, if material.
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(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the Successor Agency, any of which reflect financial difficulties.
(b) Upon the occurrence of a Listed Event, the Successor Agency shall, or shall cause the Dissemination Agent (if not the Successor Agency) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event.
(c) The Successor Agency acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14), and (a)15 of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The Successor Agency shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the Successor Agency obtains knowledge of the occurrence of any of these Listed Events, the Successor Agency will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the Successor Agency will cause a notice to be filed as set forth in paragraph (b) above. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the Successor Agency in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Successor Agency, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Successor Agency. (e) For purposes of the events identified in paragraphs (a)(15) and (a)(16) above, the term “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.
Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.
Section 7. Termination of Reporting Obligation. The Successor Agency’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the Successor Agency shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).
Section 8. Dissemination Agent. The Successor Agency may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be Urban Futures, Inc. Any Dissemination Agent may resign by providing 30 days’ written notice to the Successor Agency.
Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Successor Agency may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
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(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in law or circumstances; and
(c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.
If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.
If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the Successor Agency to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.
A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Successor Agency from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Successor Agency chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Successor Agency shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 11. Default. If the Successor Agency fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Successor Agency to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the Successor Agency to comply with this Disclosure Certificate shall be an action to compel performance.
Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Successor Agency agrees to indemnify and save the Dissemination Agent, its G-6
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officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the Successor Agency hereunder, and shall not be deemed to be acting in any fiduciary capacity for the Successor Agency, the Bond holders or any other party. The obligations of the Successor Agency under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
(b) The Dissemination Agent shall be paid compensation by the Successor Agency for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder.
Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Successor Agency, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
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Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.
Dated: __________ __, 2024 SUCCESSOR AGENCY TO THE DINUBA
REDEVELOPMENT AGENCY
By:
Executive Director
AGREED AND ACCEPTED:
URBAN FUTURES, INC.,
as Dissemination Agent
By:
Authorized Representative
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APPENDIX H
SUPPLEMENTAL INFORMATION—THE CITY OF DINUBA
The following information relating to the City of Dinuba (the “City”) and the County of Tulare, California (the “County”) is supplied solely for purposes of information. Neither the City nor the County is obligated in any manner to pay principal of or interest on the 2024 Bonds or to cure any delinquency or default on the 2024 Bonds. The 2024 Bonds are payable solely from the sources described in the Official Statement.
The Successor Agency makes no representation as to the accuracy of the information set forth in this Appendix.
City of Dinuba. The City was incorporated in 1906, and became a charter city in 1994. Located 180 miles north of Los Angeles and 200 miles south of San Francisco, the City is in the northern part of the County near the Sierra Nevada Mountain Range in the San Joaquin Valley It is governed by a five-member City Council under a Council-Manager form of government. The Council selects one of its members as Mayor, who serves as the executive head of the City for a two year term. The City has an economy focused on agriculture and food production.
City Council
The members of the City Council and the expiration dates of their respective terms are as follows:
CITY OF DINUBA
City Council
Name Term Expires
Maribel Reynose, Chair November 2026
Rachel-Nerio Guerrero,
Vice Chair
November 2024
Benjamin Prado, Member November 2026
Kuldip Thusa, Member November 2026
Linda Launer, Member November 2024
The City Council appoints the City Manager who serves as the Chief Executive Officer of the City and supervises the various City services, prepares proposals for the City Council’s consideration and implements the City Council’s policy.
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Population
The following table shows historical population figures for the City, the County and the State for the past 10 years.
POPULATION ESTIMATES
2014 through 2023
City of Dinuba, Tulare County and the State of California Year(1)
City of
Dinuba
Tulare
County
State of
California
2014 23,757 458,492 38,556,731
2015 24,135 461,628 38,865,532
2016 24,500 465,328 39,103,587
2017 24,698 468,367 39,352,398
2018 24,999 472,348 39,519,535
2019 25,417 475,535 39,605,361
2020 24,595 473,117 39,538,223
2021 24,976 473,645 39,286,510
2022 25,222 474,507 39,078,674
2023 25,469 475,064 38,940,231
(1) As of January 1.
Source: 2014-19 (2010 Demographic Research Unit Benchmark): California Department of Finance for January 1. 2020-23 (2020 Demographic Research Unit Benchmark): California Department of Finance for January 1.
Building Activity
The annual building permit valuations and number of permits for new dwelling units issued for the past five years for the City and the County are shown in the following tables.
BUILDING PERMITS AND VALUATIONS
2018 through 2022
City of Dinuba
(Dollars in Thousands)
2018 2019 2020 2021 2022
Valuation
Residential $14,201 $33,818 $13,954 $15,595 $6,915
Non-Residential 3,060 4,384 5,076 3,835 3,835
Total $17,261 $38,202 $19,030 $19,430 $10,750
Units
Single Family 79 235 88 93 40
Multi Family 10 0 0 0 0
Total 89 235 88 93 40
Note: Totals may not add to sum due to rounding.
Source: Construction Industry Research Board.
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Personal Income
Personal Income is the income that is received by all persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors’ income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance.
The personal income of an area is the income that is received by, or on behalf of, all the individuals who live in the area; therefore, the estimates of personal income are presented by the place of residence of the income recipients.
Income
The following table summarizes per capita personal income for the County, the State and the United States for the past 10 years.
PER CAPITA PERSONAL INCOME
2012 through 2021
Tulare County, State of California, and United States
Year
Tulare
County
State of
California United States
2012 $31,566 $48,121 $44,548
2013 32,081 48,502 44,798
2014 35,110 51,266 46,887
2015 35,834 54,546 48,725
2016 37,354 56,560 49,613
2017 38,212 58,804 51,550
2018 38,297 61,508 53,786
2019 40,061 64,919 56,250
2020 45,556 70,647 59,765
2021 47,986 76,614 64,143
Note: Per capita personal income is the total personal income divided by the total mid-year population estimates of the U.S. Bureau of the Census. Last updated: November 16, 2022 – new statistics for 2021; revised statistics for 2012-2020.
All dollar estimates are in current dollars (not adjusted for inflation).Source: U.S. Department of Commerce, Bureau of Economic Analysis.
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Principal Employers
The following tables list the principal employers located in the City and the County.
PRINCIPAL EMPLOYERS
as of June 30, 2023
City of Dinuba
Employer Name Industry Number of Employees
Ruiz Foods Products, Inc. Manufacturing: Food and Kindred Products 1,535 Dinuba Public Schools Services: Educational 1,014
Wal-mart Retail Trade: General Merchandise Stores 455
Best Buy Stores, Inc. Retail Trade: General Merchandise Stores 400 City of Dinuba Public Administration 196
Patterson Dental Wholesale Trade: Non-durable Goods 168 United Market Retail Trade: Food Stores 48
Tractor Supply Retail Trade: General Merchandise Stores 24 Grocery Outlet Retail Trade: Food Stores 19
MV Transportation Transportation: Motor Freight Transportation and Warehousing
12 Source: City of Dinuba Annual Comprehensive Financial Report, Fiscal Year Ended June 30, 2023.
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Employment
The following table summarizes the labor force, employment and unemployment figures for the years 2017 through 2021 for the City, the County, the State and the United States.
LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT ANNUAL AVERAGES 2017 through 2021(1)
City of Dinuba, Tulare County, State of California, and United States Year and Area Labor Force Employment(2) Unemployment(3) Unemployment
Rate (%)
2017
City of Dinuba 11,200 9,700 1,500 13.5
Tulare County 204,500 183,000 21,500 10.5
State of California 19,176,400 18,257,100 919,300 4.8
United States 160,320,000 153,337,000 6,982,000 4.4
2018
City of Dinuba 10,600 9,200 1,400 13.3
Tulare County 203,300 183,100 19,900 9.8
State of California 19,280,800 18,460,700 820,100 4.3
United States 162,075,000 155,761,000 6,314,000 3.9
2019
City of Dinuba 10,700 9,400 1,300 11.8
Tulare County 202,500 182,700 19,800 9.8
State of California 19,411,600 18,627,400 784,200 4.0
United States 163,539,000 157,538,000 6,001,000 3.7
2020
City of Dinuba 10,800 9,200 1,500 14.3
Tulare County 202,900 175,600 27,300 13.5
State of California 18,821,200 16,923,100 1,908,100 10.0 United States 160,742,000 147,795,000 12,947,000 8.1
2021
City of Dinuba 11,700 10,000 1,600 13.8
Tulare County 201,200 179,900 21,300 10.6
State of California 19,041,000 18,127,700 913,300 4.8
United States 161,204,000 152,581,000 8,623,000 5.3
Note: Data is not seasonally adjusted.
(1) Annual averages, unless otherwise specified.
(2) Includes persons involved in labor-management trade disputes. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table.
Source: U.S. Department of Labor – Bureau of Labor Statistics, California Employment Development Department.
March 2022 Benchmark.
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Industry
The County is included in the Visalia-Porterville Metropolitan Statistical Area. The distribution of employment is presented in the following table for the last five years. These figures may be multi county-wide statistics and may not necessarily accurately reflect employment trends in the County.
INDUSTRY EMPLOYMENT & LABOR FORCE ANNUAL AVERAGES
2018 through 2022
Tulare County (Visalia-Porterville Metropolitan Statistical Area) Category 2018 2019 2020 2021 2022
Total Farm 40,000 38,800 36,600 35,700 37,400
Total Nonfarm 126,300 128,500 124,700 130,200 138,400
Total Private 94,000 95,700 92,800 98,400 105,300
Goods Producing 19,000 19,300 19,300 20,000 21,500
Mining, Logging, and Construction 6,100 6,400 6,600 7,000 7,600 Manufacturing 13,000 12,900 12,700 13,000 13,800
Durable Goods 3,300 3,200 3,100 3,100 3,400
Nondurable Goods 9,700 9,600 9,600 9,900 10,500
Service Providing 107,300 109,200 105,400 110,200 117,000 Private Service Providing 75,000 76,500 73,600 78,500 83,800 Trade, Transportation and Utilities 28,000 27,700 27,100 29,400 30,800 Wholesale Trade 4,300 4,400 4,300 4,400 4,400
Retail Trade 16,300 16,200 15,600 16,600 16,900
Transportation, Warehousing and
Utilities
7,400 7,200 7,200 8,500 9,500
Information 700 700 600 600 600
Financial Activities 4,100 4,000 3,800 3,700 3,800
Professional and Business Services 11,000 11,400 11,000 10,800 11,500 Private Education and Health Services 16,100 17,100 17,300 18,300 19,600 Leisure and Hospitality 11,800 12,100 10,700 12,200 13,800 Other Services 3,500 3,500 3,200 3,500 3,900
Government 32,300 32,700 31,900 31,800 33,100
Total, All Industries 166,300 167,300 161,300 165,900 175,800
Note: The “Total, All Industries” data is not directly comparable to the employment data found herein.
Source: State of California, Employment Development Department, Labor Market Information Division, Annual Average Labor Force and Industry Employment. March 2022 Benchmark.
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Commercial Activity
Summaries of annual taxable sales for the City for the last five years are shown in the following tables.
ANNUAL TAXABLE SALES
2018 through 2022
City of Dinuba
(Dollars in Thousands)
Year
Total Retail and
Food Services
Permits
Retail and Food
Services:
Taxable
Transactions
Total All Outlets
Permits
Total All Outlets:
Taxable
Transactions
2018 247 $1,020,973 381 $1,099,088
2019 263 1,148,438 408 1,219,307
2020 293 2,754,152 447 2,827,427
2021 279 2,389,712 439 2,477,390
2022 283 2,035,160 442 2,131,783
Source: “Taxable Sales in California,” California Department of Tax and Fee Administration.
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APPENDIX I
SPECIMEN MUNICIPAL BOND INSURANCE POLICY
$_________
SUCCESSOR AGENCY TO THE
DINUBA REDEVELOPMENT AGENCY
TAX ALLOCATION REFUNDING BONDS, SERIES 2024
BOND PURCHASE AGREEMENT
_________, 2024
Successor Agency to the Dinuba
Redevelopment Agency
405 E. El Monte Street
Dinuba, California 93618
Ladies and Gentlemen:
Oppenheimer & Co. Inc. (the “Underwriter”) offers to enter into this Bond Purchase Agreement (the “Bond Purchase Agreement”) with the Successor Agency to the Dinuba Redevelopment Agency (the “Successor Agency”), which will be binding upon the Successor Agency and the Underwriter upon the acceptance hereof by the Successor Agency. This offer is made subject to its acceptance by the Successor Agency by the Successor Agency’s execution of this Bond Purchase Agreement and its delivery to the Underwriter on or before 11:59 P.M., California time, on the date hereof.
The Successor Agency acknowledges and agrees that: (i) the purchase and sale of the abovecaptioned Bonds (and defined below) pursuant to this Bond Purchase Agreement is an arm’s-length commercial transaction between the Successor Agency and the Underwriter; (ii) in connection with such transaction, including the process leading thereto, the Underwriter is acting solely as a principal and not as an agent or a fiduciary of the Successor Agency; (iii) the Underwriter has neither assumed an advisory or fiduciary responsibility in favor of the Successor Agency with respect to the offering of the Bonds or the process leading thereto (whether or not the Underwriter, or any affiliate of the Underwriter, has advised or is currently advising the Successor Agency on other matters) nor has it assumed any other obligation to the Successor Agency except the obligations expressly set forth in this Bond Purchase Agreement; (iv) the Underwriter has financial and other interests that differ from those of the Successor Agency; and (v) the Successor Agency has consulted with its own legal and financial advisors to the extent it deemed appropriate in connection with the offering of the Bonds.
The Successor Agency hereby acknowledges receipt from the Underwriter of disclosures required by the Municipal Securities Rulemaking Board (“MSRB”) Rule G-17 (as set forth in MSRB Notice 2012-25 (May 7, 2012), relating to disclosures concerning the Underwriter’s role in the transaction, disclosures concerning the Underwriter’s compensation, conflict disclosures, if any, and disclosures concerning complex municipal securities financing, if any. The Successor Agency acknowledges that it has engaged Urban Futures, Inc. (the “Municipal Advisor”), as its municipal advisor (as defined in Securities and Exchange Commission Rule 15Ba1), and for financial advice purposes, will rely only on the advice of the Municipal Advisor.
Exhibit 'C'
2 Capitalized terms used and not otherwise defined in this Bond Purchase Agreement shall have the same meanings given them in that certain Indenture of Trust, dated as of ______ 1, 2024 (the “Indenture”), by and between the Successor Agency and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), pursuant to which the Bonds are being issued.
1. Purchase and Sale; Use of Proceeds.
(a) Upon the terms and conditions and in reliance upon the representations, warranties and covenants herein, the Successor Agency hereby agrees to sell to the Underwriter and the Underwriter hereby agrees to purchase from the Successor Agency for offering to the public, all (but not less than all) of the $________ Successor Agency to the Dinuba Redevelopment Agency Tax Allocation Refunding Bonds, Series 2024 (the “Bonds”), at the purchase price of $_______ (the “Purchase Price”) (being the principal amount of the Bonds of $_______, less an Underwriter’s discount of $________, and plus an original issue premium of $_______). The Purchase Price will be delivered to the Trustee on behalf of the Successor Agency.
The Purchase Price is to be paid on the Closing Date (as defined in Section 6 below). The Bonds shall be dated the Closing Date, and shall bear interest at the rates, shall mature on the dates and in the principal amounts, all as set forth in the attached Exhibit A.
As an accommodation to the Successor Agency, the Underwriter will pay, from the Purchase Price, the sum of $_______ to ________ (the “Insurer”) as the premium for its municipal bond insurance policy issued for the Bonds (the “Insurance Policy”) and the sum of $_______ to the Insurer as the premium for its municipal debt service reserve insurance policy issued for the Bonds (the “Reserve Policy”). Such amounts shall be credited against the Purchase Price to be remitted by the Underwriter to the Trustee pursuant to the foregoing paragraph. (b) The Bonds are being issued for the purpose of (i) refunding the Successor Agency’s Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project No. 2, as Amended, Tax Allocation Refunding Bonds, Issue of 2014 (the “Refunded Bonds”); (ii) purchasing the Insurance Policy; (iii) purchasing the Reserve Policy; and (iv) paying certain costs of issuance of the Bonds.
The Bonds are special obligations of the Successor Agency, payable from, and secured by a lien on Pledged Tax Revenues.
(c) Under an Escrow Agreement, dated as of _______ 1, 2024 (the “Escrow Agreement”), by and between the Successor Agency and U.S. Bank Trust Company, National Association, as escrow bank (the “Escrow Bank”), provision will be made for the payment and redemption of the Refunded Bonds.
(d) Issuance of the Bonds was authorized by a resolution of the Successor Agency Board of Directors (the “Agency Board”), adopted on March 26, 2024 (the “Successor Agency Bond Resolution”), and a resolution of the Oversight Board, adopted on April 19, 2024 (the “Oversight Board Resolution”). In addition, the Agency Board adopted a resolution on _______, 2024, approving the Official Statement (defined below) (together with the Successor Agency Bond Resolution, the “Successor Agency Resolutions”).
3 2. Bona Fide Public Offering. The Underwriter agrees to make a bona fide public offering of all of the Bonds, at prices not in excess of the initial public offering yields or prices set forth in Exhibit A. The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices.
3. Official Statement. The Successor Agency shall deliver or cause to be delivered to the Underwriter promptly after acceptance of this Bond Purchase Agreement copies of the Official Statement relating to the Bonds, dated the date hereof (which, together with all exhibits and appendices included therein or attached thereto and with such amendments or supplements thereto which shall be approved by the Underwriter, the “Official Statement”). The Successor Agency authorizes the Official Statement, including the cover page and Appendices thereto and the information contained therein, to be used in connection with the sale of the Bonds and ratifies, confirms and approves the use and distribution by the Underwriter for such purpose, prior to the date hereof, of the Preliminary Official Statement dated ________, 2024 relating to the Bonds (the “Preliminary Official Statement”). The Successor Agency deems the Preliminary Official Statement final as of its date for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (“Rule 15c2-12”), except for information allowed to be omitted by Rule 15c2-12.
The Successor Agency also agrees to deliver to the Underwriter, at the Successor Agency’s sole cost and at such address as the Underwriter shall specify, as many copies of the Official Statement as the Underwriter shall reasonably request as necessary to comply with paragraph (b)(4) of Rule 15c2-12, with Rule G-32 and all other applicable rules of the Municipal Securities Rulemaking Board. At least one copy of the Official Statement shall be in word searchable portable document format (PDF). The Successor Agency agrees to deliver such copies of the Official Statement within seven (7) business days after the date hereof, but in any event no later than the Closing Date. The Official Statement shall contain all information previously permitted to be omitted from the Preliminary Official Statement by Rule 15c2-12.
The Underwriter agrees to deliver or cause to be delivered to each purchaser of the Bonds from it, upon request, a copy of the Official Statement, for the time period required under Rule 15c2-
12. The Underwriter also agrees to promptly file a copy of the final Official Statement, including any supplements prepared by the Successor Agency and delivered to the Underwriter, with a nationally recognized municipal securities information repository (currently, the Electronic Municipal Market Access System (referred to as “EMMA”), a facility of the Municipal Securities Rulemaking Board, at www.emma.msrb.org), and to take any and all other actions necessary to comply with applicable Securities and Exchange Commission rules and Municipal Securities Rulemaking Board rules governing the use of the Official Statement in connection with offering, sale and delivery of the Bonds to the ultimate purchasers thereof.
4. Representations, Warranties and Agreements of the Successor Agency. The Successor Agency represents and warrants to the Underwriter that, as of the Closing Date:
(a) The Successor Agency is a public entity existing under the laws of the State, including the Dissolution Act, and is authorized, among other things, (i) to issue the Bonds, and (ii) to secure the Bonds in the manner contemplated by the Indenture. (b) The Successor Agency has the full right, power and authority (i) to enter into the Indenture, the Escrow Agreement, the Continuing Disclosure Certificate (defined below), and this Bond Purchase Agreement (collectively, the “Successor Agency Documents”), (ii) 4 to issue, sell and deliver the Bonds to the Underwriter as provided herein, and (iii) to carry out and consummate all other transactions on its part contemplated by each of the aforesaid documents, and the Successor Agency has complied with all provisions of applicable law in all matters relating to such transactions.
(c) The Successor Agency has duly authorized (i) the execution and delivery of the Bonds and the execution, delivery and due performance by the Successor Agency of the Successor Agency Documents, (ii) the distribution and use of the “deemed final” Preliminary Official Statement and the execution, delivery and distribution of the final Official Statement, and (iii) the taking of any and all such action as may be required on the part of the Successor Agency to carry out, give effect to and consummate the transactions on its part contemplated by such instruments. All consents or approvals necessary to be obtained by the Successor Agency in connection with the foregoing have been received, and the consents or approvals so received are still in full force and effect.
(d) The information contained in the Preliminary Official Statement (excluding therefrom any information relating to the Insurer, the Insurance Policy, the Reserve Policy, The Depository Trust Company (“DTC”) and its book-entry system included therein, information provided by the Underwriter and the information therein under the caption “CONCLUDING INFORMATION - Underwriting”) is true and correct in all material respects, and did not as of its date contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (e) The information contained in the Official Statement (excluding therefrom any information relating to the Insurer, the Insurance Policy, the Reserve Policy, DTC and its book-entry system included therein, information provided by the Underwriter and the information therein under the caption “CONCLUDING INFORMATION - Underwriting”) is true and correct in all material respects, and does not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(f) Neither the execution and delivery by the Successor Agency of the Successor Agency Documents and of the Bonds nor the consummation of the transactions on the part of the Successor Agency contemplated herein or therein or the compliance with the provisions hereof or thereof will, in any material way, conflict with, or constitute on the part of the Successor Agency a violation of, or a breach of or default under, (i) any statute, indenture, mortgage, note or other agreement or instrument to which the Successor Agency is a party or by which it is bound, (ii) any provision of the State Constitution, or (iii) any existing law, rule, regulation, ordinance, judgment, order or decree to which the Successor Agency (or the Board members of the Successor Agency or any of its officers in their respective capacities as such) is subject.
(g) The Successor Agency has never been in default at any time, as to principal of or interest on any obligation which it has issued except as otherwise specifically disclosed in the Official Statement; and the Successor Agency has not entered into any contract or arrangement of any kind which might give rise to any lien or encumbrance on the Pledged 5 Tax Revenues (senior to or on a parity with the pledge thereof under the Indenture), except as is specifically disclosed in the Preliminary Official Statement and the Official Statement. (h) Except as will be specifically disclosed in the Official Statement, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, which has been served on the Successor Agency or, to the knowledge of the Successor Agency, threatened, which in any way questions the powers of the Successor Agency referred to in paragraph (b) above, or the validity of any proceeding taken by the Successor Agency in connection with the issuance of the Bonds, or wherein an unfavorable decision, ruling or finding could materially adversely affect the transactions contemplated by the Successor Agency Documents, or which, in any way, could adversely affect the validity or enforceability of the Successor Agency Documents or the Bonds or, to the knowledge of the Successor Agency, which in any way questions the exclusion from gross income of the recipients thereof the interest on the Bonds for federal income tax purposes or in any other way questions the status of the Bonds under federal or state tax laws or regulations or which in any way could materially adversely affect the availability of Pledged Tax Revenues to pay the debt service on the Bonds. (i) Any written certificate signed by any official of the Successor Agency and delivered to the Underwriter in connection with the offer or sale of the Bonds shall be deemed a representation and warranty by the Successor Agency to the Underwriter as to the truth of the statements therein contained.
(j) The Successor Agency has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon.
(k) The Successor Agency will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter and at the expense of the Underwriter as the Underwriter may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and will use its best efforts to continue such qualifications in effect so long as required for the distribution of the Bonds; provided, however, that the Successor Agency will not be required to execute a special or general consent to service of process or qualify as a foreign corporation in connection with any such qualification or determination in any jurisdiction.
(l) All authorizations, approvals, licenses, permits, consents, elections, and orders of or filings with any governmental authority, legislative body, board, agency or commission having jurisdiction in the matters which are required by the Closing Date for the due authorization of, which would constitute a condition precedent to or the absence of which would adversely affect the due performance by the Successor Agency of, its obligations under the Indenture and the Escrow Agreements has been duly obtained or made and are in full force and effect.
(m) Between the date of this Bond Purchase Agreement and the Closing Date, the Successor Agency will not offer or issue any bonds, notes or other obligations for borrowed 6 money secured by a pledge of or lien on Pledged Tax Revenues on a basis senior to or on a parity with the Bonds or the 2015 Bonds except as previously disclosed in writing to the Underwriter.
(n) The Successor Agency will apply the proceeds of the Bonds in accordance with the Indenture and as described in the Preliminary Official Statement and the Official Statement.
(o) Except as otherwise described in the Official Statement, as of the Closing Date, the Successor Agency will not have outstanding any indebtedness which indebtedness is secured by a lien on the Pledged Tax Revenues on a parity with or senior to the lien provided for in the Indenture on the Pledged Tax Revenues. (p) Except as described in the Preliminary Official Statement and the Official Statement and based upon a review of their previous undertakings, the Successor Agency has not failed, within the last five years, to comply in all material respects with any undertaking of the Successor Agency pursuant to Rule 15c2-12.
(q) If between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, an event occurs which would cause the information contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the information therein, in the light of the circumstances under which it was presented, not misleading, the Successor Agency will notify the Underwriter, and, if in the opinion of the Underwriter or the Successor Agency, or their respective counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Successor Agency will cooperate in the preparation of an amendment or supplement to the Official Statement in a form and manner approved by the Underwriter, and shall pay all expenses thereby incurred. For the purposes of this subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, the Successor Agency will furnish such information with respect to itself as the Underwriter may from time to time reasonably request. As used herein, the term “End of the Underwriting Period” means the later of such time as: (i) the Successor Agency delivers the Bonds to the Underwriter; or (ii) the Underwriter does not retain, directly or as a member of an underwriting syndicate, an unsold balance of the Bonds for sale to the public.
Notwithstanding the foregoing, unless the Underwriter gives notice to the contrary, the Successor Agency may assume that the “End of the Underwriting Period” is the Closing Date.
(r) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (q) hereof, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such subparagraph) at all times subsequent thereto up to and including the date which is 25 days after the End of the Underwriting Period for the Bonds, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of a material fact required to be stated therein or necessary to make the information therein in the light of the circumstances under which it was presented, not misleading.
7 (s) To the best of the Successor’s Agency knowledge, the Oversight Board has duly adopted the Oversight Board Resolution and no further Oversight Board approval or consent is required for the issuance of the Bonds or the consummation of the transactions described in the Official Statement.
(t) The Department of Finance of the State (the “Department of Finance”) has issued a letter, dated ______, 2024, approving the issuance of the Bonds. No further Department of Finance approval or consent is required for the issuance of the Bonds or the consummation of the transactions described in the Official Statement. The Successor Agency has received its Finding of Completion from the Department of Finance pursuant to section 34179.7 of the Dissolution Act. Except as disclosed in the Official Statement, the Successor Agency is not aware of the Department of Finance directing or having any basis to direct the County Auditor-Controller to deduct unpaid unencumbered funds from future allocations to the Successor Agency pursuant to Section 34183 of the Dissolution Act. (u) As of the time of acceptance hereof and as of the Closing Date, the Successor Agency has complied with the filing of all Recognized Obligation Payment Schedules as required by law.
5. Covenants of the Successor Agency. The Successor Agency covenants with the Underwriter as of the Closing Date as follows:
(a) The Successor Agency covenants and agrees that it will execute a continuing disclosure certificate, constituting an undertaking to provide ongoing disclosure about the Successor Agency, for the benefit of the owners of the Bonds as required by Section (b)(5)(i) of Rule 15c2-12, substantially in the form attached to the Official Statement (the “Continuing Disclosure Certificate”).
(b) The Successor Agency agrees to cooperate with the Underwriter in the preparation of any supplement or amendment to the Official Statement deemed necessary by the Underwriter to comply with Rule 15c2-12 and any applicable rule of the MSRB. (c) If at any time prior to the Closing Date, any event occurs with respect to the Successor Agency as a result of which the Official Statement, as then amended or supplemented, might include an untrue statement of a material fact, or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Successor Agency shall promptly notify the Underwriter in writing of such event. Any information supplied by the Successor Agency for inclusion in any amendments or supplements to the Official Statement will not contain any untrue or misleading statement of a material fact or omit to state any such fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(d) The Successor Agency will not knowingly take or omit to take any action, which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner other than as provided in the Indenture or which would cause the interest on the Bonds to be includable in gross income of the owners of the Bonds for federal income tax purposes.
8 6. Closing. On _______, 2024, or at such other date and times as shall have been mutually agreed upon by the Successor Agency and the Underwriter (the “Closing Date”), the Successor Agency will deliver or cause to be delivered the Bonds to the Underwriter, and the Successor Agency shall deliver or cause to be delivered to the Underwriter the certificates, opinions and documents hereinafter mentioned, each of which shall be dated as of the Closing Date. The activities relating to the execution and delivery of the Bonds, opinions and other instruments as described in Section 8 of this Bond Purchase Agreement shall occur on the Closing Date, unless otherwise specified herein. The delivery of the certificates, opinions and documents as described herein shall be made at the offices Stradling Yocca Carlson & Rauth LLP, in Newport Beach, California (“Bond Counsel”), or at such other place as shall have been mutually agreed upon by the Successor Agency and the Underwriter. Such delivery is herein called the “Closing.” The Bonds will be prepared and physically delivered to the Trustee on the Closing Date in the form of a separate single fully registered bond for each of the maturities of the Bonds. The Bonds shall be registered in the name of the Cede & Co., as registered owner and nominee for DTC, New York, New York. The Bonds will be authenticated by the Trustee in accordance with the terms and provisions of the Indenture and shall be delivered to DTC prior to the Closing Date as required by DTC to assure delivery of the Bonds on the Closing Date. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Underwriter to accept delivery of and pay for the Bonds in accordance with the terms of this Bond Purchase Agreement.
At or before 8:30 a.m., Pacific Standard time, on the Closing Date, the Successor Agency will deliver, or cause to be delivered, the Bonds to DTC, in definitive form duly executed and authenticated by the Trustee, and the Underwriter will pay the Purchase Price of the Bonds by delivering to the Trustee, for the account of the Successor Agency a wire transfer in federal funds of the Purchase Price payable to the order of the Trustee, less the amounts remitted by the Underwriter to the Insurer as described in the third paragraph of Section 1(a).
7. Establishment of Issue Price.
(a) The Underwriter agrees to assist the Successor Agency in establishing the issue price of the Bonds and shall execute and deliver to the Successor Agency at Closing an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Successor Agency and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds.
(b) Except as otherwise set forth in Exhibit A attached hereto, the Successor Agency will treat the first price at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity. At or promptly after the execution of this Bond Purchase Agreement, the Underwriter shall report to the Successor Agency the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Successor Agency the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds 9 of that maturity, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Successor Agency or Bond Counsel.
For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds. (c) The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Bond Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto. Exhibit A also sets forth, as of the date of this Bond Purchase Agreement, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the close of the business day immediately following the date of this Bond Purchase Agreement) and (ii) the 10% test has not been satisfied and for which the Successor Agency and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Successor Agency to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-theoffering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
(1) the close of the fifth (5th) business day after the sale date; or (2) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Underwriter will advise the Successor Agency promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. (d) The Underwriter confirms that:
(i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be reasonable periodic intervals or otherwise upon request of the Underwriter and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,
(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and 10 (C) to acknowledge that, unless otherwise advised by the dealer or brokerdealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public.
(ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires. (e) The Successor Agency acknowledges that, in making the representation set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The Successor Agency further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds. (f) The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.
Further, for purposes of this section:
(i) “public” means any person other than an underwriter or a related party,
(ii) “underwriter” means (A) any person that agrees pursuant to a written contract with the Successor Agency (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public); 11 (iii) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and
(iv) “sale date” means the date of execution of this Bond Purchase Agreement by all parties.
8. Closing Conditions. The obligations of the Underwriter hereunder shall be subject to the performance by the Successor Agency of its obligations hereunder at or prior to the Closing Date and are also subject to the following conditions:
(a) the representations, warranties and covenants of the Successor Agency contained herein shall be true and correct in all material respects as of the Closing Date; (b) as of the Closing Date, there shall have been no material adverse change in the financial condition of the Successor Agency since June 30, 2023; (c) as of the Closing Date, all official action of the Successor Agency relating to this Bond Purchase Agreement, the Continuing Disclosure Certificate, the Escrow Agreements and the Indenture shall be in full force and effect; (d) as of the Closing Date, the Underwriter shall receive the following certificates, opinions and documents, in each case satisfactory in form and substance to the Underwriter:
(i) a copy of the Indenture, as duly executed and delivered by the Successor Agency and the Trustee;
(ii) a copy of the Continuing Disclosure Certificate, as duly executed and delivered by the Successor Agency;
(iii) a copy of the Escrow Agreement, as duly executed and delivered by the Successor Agency and the Escrow Bank;
(iv) the opinion of Bond Counsel, dated the Closing Date and addressed to the Successor Agency, in the form attached as Appendix C to the Official Statement and a reliance letter, dated the Closing Date and addressed to the Underwriter which shall include a statement that the opinion substantially in the form attached as Appendix C to the Official Statement may be relied upon by the Underwriter to the same extent as if such opinion was addressed to them;
12 (v) a certificate, dated the Closing Date, of the Successor Agency executed by its Executive Director (or other duly appointed officer of the Successor Agency authorized by the Successor Agency by resolution of the Successor Agency) to the effect that (A) there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body which has been served on the Successor Agency or, to the knowledge of the Executive Director, threatened against or affecting the Successor Agency to restrain or enjoin the Successor Agency’s participation in, or in any way contesting the existence of the Successor Agency or the powers of the Successor Agency with respect to, the transactions contemplated by the Escrow Agreements, this Bond Purchase Agreement, the Continuing Disclosure Certificate or the Indenture, and consummation of such transactions; (B) the representations and warranties of the Successor Agency contained in this Bond Purchase Agreement are true and correct in all material respects, and the Successor Agency has complied, in all material respects, with all agreements and covenants and satisfied all conditions to be satisfied at or prior to the Closing Date as contemplated by the Indenture and this Bond Purchase Agreement; (C) to the best knowledge of such officer, no event affecting the Successor Agency has occurred since the date of the Official Statement which has not been disclosed therein or in any supplement or amendment thereto which event should be disclosed in the Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (D) no further consent is required to be obtained for the inclusion of the Audited Financial Statements of the City for the Fiscal Year End June 30, 2023, as Appendix E to the Official Statement; (vi) an opinion of the City Attorney, as counsel to the Successor Agency, dated the Closing Date, addressed to the Underwriter and the Successor Agency, in form and substance acceptable to each of them, dated the date of the Closing, to the following effect:
(A) The Successor Agency is a public entity, duly organized and validly existing under the laws of the State;
(B) The execution and delivery of the Indenture, the Continuing Disclosure Certificate, the Escrow Agreements, and this Bond Purchase Agreement have been duly approved by the Successor Agency Resolutions adopted by the Agency Board at meetings duly called and held in accordance pursuant to law and with all public notice required by law and at each of which a quorum of the members of the Successor Agency was continuously present, and the Successor Resolutions are in full force and effect and have not been modified, amended or rescinded;
(C) Except as described in the Official Statement, there is no litigation pending against the Successor Agency and notice of which has been served on the Successor Agency, or to the best of such counsel’s knowledge after due inquiry, threatened against the Successor Agency, which: (1) challenges the right or title of any member or officer of the Successor Agency to hold his or her respective office or exercise or perform the powers and duties pertaining thereto; (2) challenges the validity or enforceability of the Bonds, the Indenture, the Escrow Agreement, the Continuing Disclosure 13 Certificate, or the Bond Purchase Agreement; (c) seeks to restrain or enjoin the issuance and sale of the Bonds, the adoption or effectiveness of the Resolution and Indenture, or the execution and delivery by the Successor Agency of, or the performance by the Successor Agency of its obligations under the Bonds, the Indenture, the Escrow Agreement, the Continuing Disclosure Certificate, or the Bond Purchase Agreement; or (d) if determined adversely to the Successor Agency or its interests, would have a material and adverse effect upon the financial condition, assets, properties or operations of the Successor Agency; and
(D) The execution and delivery by the Successor Agency of, and the performance by the Successor Agency of its obligations under, the Bonds, the Indenture, the Escrow Agreement, the Continuing Disclosure Certificate, and the Bond Purchase Agreement, do not in any material respect conflict with, violate or constitute a default under any provision of any law, court order or decree or any contract, instrument or agreement to which the Successor Agency is a party or by which it is bound.
(vii) an opinion of counsel to the Trustee, dated the Closing Date and addressed to the Successor Agency and the Underwriter, to the effect that:
(A) The Trustee is a national banking association organized and existing under the laws of the United States of America, having full power to enter into, accept and administer the trust created under the Indenture; (B) The Indenture has been duly authorized, executed and delivered by the Trustee and the Indenture constitutes a legal, valid and binding obligation of the Trustee enforceable in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles, if equitable remedies are sought; and (C) No consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Trustee that has not been obtained is or will be required for the execution and delivery by the Trustee of the Indenture or the consummation of the transactions on the part of the Trustee contemplated by the Indenture;
(viii) an opinion of counsel to the Escrow Bank, dated the Closing Date and addressed to the Successor Agency and the Underwriter, to the effect that:
(A) The Escrow Bank is a national banking association organized and existing under the laws of the United States of America, having full power to enter into, accept and administer its obligations created under the Escrow Agreement;
(B) The Escrow Agreement has been duly authorized, executed and delivered by the Escrow Bank and the Escrow Agreement constitutes the legal, valid and binding obligations of the Escrow Bank enforceable in 14 accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles, if equitable remedies are sought; and
(C) No consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Escrow Bank that has not been obtained is or will be required for the execution and delivery by the Escrow Bank of the Escrow Agreement or the consummation of the transactions on the part of the Escrow Bank contemplated by the Escrow Agreement;
(ix) a certificate, dated the Closing Date, of the Trustee, signed by a duly authorized officer of the Trustee, to the effect that (A) the Trustee is duly organized and validly existing as a national banking association, with full corporate power to undertake the obligations of the Indenture; (B) the Trustee has duly authorized, executed and delivered the Indenture and by all proper corporate action has authorized the acceptance of the trust of the Indenture; and (C) there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body which has been served on the Trustee (either in state or federal courts), or to the knowledge of the Trustee threatened against the Trustee which would restrain or enjoin the execution or delivery of the Indenture, or which would affect the validity or enforceability of the Indenture, or the Trustee’s participation in, or in any way contesting the powers or the authority of the Trustee with respect to, the transactions contemplated by the Indenture, or any other agreement, document or certificate related to such transactions;
(x) a certificate, dated the Closing Date, of the Escrow Bank, signed by a duly authorized officer of the Escrow Bank, to the effect that (A) the Escrow Bank is duly organized and validly existing as a national banking association, with full corporate power to undertake of its obligations under the Escrow Agreement; (B) the Escrow Bank has duly authorized, executed and delivered the Escrow Agreement and by all proper corporate action has authorized the acceptance of the obligations of the Escrow Bank under the Escrow Agreement; and (C) there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body which has been served on the Escrow Bank (either in state or federal courts), or to the knowledge of the Escrow Bank threatened against the Escrow Bank which would restrain or enjoin the execution or delivery of the Escrow Agreements, or which would affect the validity or enforceability of the Escrow Agreement or the Escrow Bank’s participation in, or in any way contesting the powers or the authority of the Escrow Bank with respect to, the transactions contemplated by the Escrow Agreement, or any other agreement, document or certificate related to such transactions;
(xi) a supplemental opinion of Bond Counsel addressed to the Underwriter, in form and substance acceptable to each of them, dated the date of Closing, to the following effect:
15 (A) this Bond Purchase Agreement has been duly authorized, executed and delivered by the Successor Agency, and assuming the valid execution and delivery by the other parties thereto, is valid and binding upon the Successor Agency, subject to the laws relating to bankruptcy, insolvency, reorganization of creditors’ rights generally and to the application of equitable principles;
(B) the statements contained in the Official Statement under the captions “THE 2024 BONDS,” “SECURITY FOR THE 2024 BONDS,” “TAX MATTERS” “APPENDIX B – SUMMARY OF THE INDENTURE
and “APPENDIX C—FORM OF BOND COUNSEL OPINION” thereto are accurate insofar as such statements purport to expressly summarize certain provisions of the Bonds, the Indenture and Bond Counsel’s opinion concerning federal tax matters relating to the Bonds; and (C) the Bonds are exempt from registration pursuant to Section 3(a)(2) of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended;
(xii) the opinion of Kutak Rock LLP, counsel to the Underwriter, addressed to the Underwriter and dated the Closing Date, in form and substance satisfactory to the Underwriter;
(xiii) a Tax Certificate in the form satisfactory to Bond Counsel; (xiv) the final Official Statement executed by an authorized officer of the Successor Agency;
(xv) certified copies of the Successor Agency Resolutions and the Oversight Board Resolution;
(xvi) specimen Bonds;
(xvii) evidence that the federal tax information form 8038-G with respect to the Bonds has been prepared by Bond Counsel for filing; (xviii) a verification report of Causey, Demgen & Moore, P.C., as to the sufficiency to pay in full the redemption price of the Refunded Bonds of the moneys in the escrow account created under the Escrow Agreement; (xix) a copy of the Insurance Policy and a copy of the Reserve Policy; (xx) an opinion of counsel to the Insurer, addressed to the Successor Agency and the Underwriter to the effect that:
(A) the descriptions of the Insurer, the Insurance Policy and the Reserve Policy included in the Official Statement are accurate; 16 (B) the Insurance Policy and the Reserve Policy constitute the legal, valid and binding obligations of the Insurer, enforceable in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditor’s rights generally and by the application of equitable principles if equitable remedies are sought, and (C) as to such other matters as the Successor Agency or the Underwriter may reasonably request;
(xxi) a certificate of the Insurer, signed by an authorized officer of the Insurer, to the effect that:
(A) the information contained in the Official Statement relating to the Insurer, the Insurance Policy, and the Reserve Policy is true and accurate and
(B) as to such other matters as the Successor Agency or the Underwriter may reasonably request;
(xxii) satisfactory evidence that the Bonds have been assigned the ratings as set forth in the Official Statement;
(xxiii) a certificate of an officer of Urban Futures, Inc. (the “Fiscal Consultant”), dated the Closing Date, addressed to the Successor Agency and the Underwriter, to the effect that, to the best of its knowledge, the assessed valuations and other fiscal information contained in the Official Statement, including such firm’s Fiscal Consultant’s Report attached thereto as APPENDIX A, are presented fairly and accurately, and consenting to the use of their report as APPENDIX A to the Preliminary Official Statement and the Official Statement; (xxiv) evidence of required filings with the California Debt and Investment Advisory Commission;
(xxv) a defeasance opinion of Bond Counsel with respect to the Refunded Bonds, dated the Closing Date and addressed to the Successor Agency, the Trustee, the Insurer and the Underwriter, in form and substance satisfactory to the Underwriter;
(xxvi) a letter of Stradling Yocca Carlson & Rauth LLP, as disclosure counsel to the Successor Agency, dated the Closing Date and addressed to the Successor Agency and the Underwriter stating that based upon its participation in the preparation of the Preliminary Official Statement and the Official Statement and without having undertaken to determine independently the fairness, accuracy or completeness of the statements contained in the Preliminary Official Statement and the Official Statement, such counsel has no reason to believe that, the Preliminary Official Statement as of its date and as of the date of this Bond Purchase Agreement and the Official Statement as of its date and as of the Closing Date, the Preliminary Official Statement contained or the Official Statement (excluding therefrom any 17 information relating to the Insurer, the Insurance Policy, the Reserve Policy, DTC and its book-entry system included therein, and CUSIP numbers, financial, accounting, statistical, economic, engineering or demographic data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion, any determinations regarding valuation, real estate, and environmental matters, or any basis therefor, and any information therein under the caption “CONCLUDING INFORMATION - Underwriting” and the information included in the appendices thereto, as to which no opinion need be expressed) contains any untrue statement of a material fact or omitted or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (xxvii) such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably deem necessary to evidence the truth and accuracy as of the time of the Closing Date of the representations and warranties of the Successor Agency contained in this Bond Purchase Agreement and the due performance or satisfaction by the Successor Agency at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Successor Agency pursuant to this Bond Purchase Agreement.
9. Termination. The Underwriter shall have the right to cancel its obligations to purchase the Bonds if between the date hereof and the Closing Date:
(a) a decision with respect to legislation shall be reached by a committee of the House of Representatives or the Senate of the Congress of the United States, or legislation shall be favorably reported by such a committee or be introduced, by amendment or otherwise, in or be passed by the House of Representatives or the Senate, or recommended to the Congress of the United States for passage by the President of the United States, or be enacted or a decision by a federal court of the United States or the United States Tax Court shall have been rendered, or a ruling, release, order, regulation or offering circular by or on behalf of the United States Treasury Department, the Internal Revenue Service or other governmental agency shall have been made or proposed to be made having the purpose or effect, or any other action or event shall have occurred which has the purpose or effect, directly or indirectly, of adversely affecting the federal income tax consequences of owning the Bonds, including causing interest on the Bonds to be included in gross income of the owners of the Bonds for purposes of federal income taxation, or imposing federal income taxation upon revenues or other income of the general character to be derived by the Successor Agency or by any similar body under the Indenture or similar documents or upon interest received on obligations of the general character of the Bonds which, in the reasonable opinion of the Underwriter, materially adversely affects the market price of or market for the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; or (b) legislation shall have been enacted, or considered for enactment with an effective date prior to the Closing Date, or a decision by a court of the United States shall have been rendered, the effect of which is that of the Bonds, including any underlying obligations, or the Indenture, as the case may be, are not exempt from the registration, qualification or other requirements of the Securities Act of 1933, as amended and as then in effect, the Securities Exchange Act of 1934, as amended and as then in effect, or the Trust Indenture Act of 1939, as amended and as then in effect; or 18 (c) a stop order, ruling, regulation or offering circular by the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall have been issued or made or any other event occurs, the effect of which is that the issuance, offering or sale of the Bonds, including any underlying obligations, or the delivery or performance of the Indenture, the Escrow Agreement or the Continuing Disclosure Certificate, as contemplated hereby or by the Official Statement, is or would be in violation of any provisions of the federal securities laws, including the Securities Act of 1933, as amended and as then in effect, the Securities Exchange Act of 1934, as amended and as then in effect, or the Trust Indenture Act of 1939, as amended and as then in effect; or (d) there shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; or
(e) any event shall have occurred or any information shall have become known to the Underwriter which causes the Underwriter to reasonably believe that the Official Statement as then amended or supplemented includes an untrue statement of a material fact, 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; or (f) there shall be in force a general suspension of trading on the New York Stock Exchange, the effect of which on the financial markets of the United States is such as, in the reasonable judgment of the Underwriter, would materially adversely affect the market for or market price of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; or
(g) a general banking moratorium shall have been declared by federal, New York or California authorities; or
(h) any proceeding shall be pending or threatened by the Securities and Exchange Commission against the Successor Agency or the Former Agency; or (i) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange; or
(j) the New York Stock Exchange or other national securities exchange, or any governmental or regulatory authority, shall impose, as to the Bonds or obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or the charge to the net capital requirements of the Underwriter; or
(k) there shall exist any event which in the reasonable opinion of the Underwriter that either: (i) makes untrue or incorrect in any material respect any statement or information contained in the Official Statement; or (ii) is not reflected in the Official Statement but should be reflected therein to make the statements and information contained therein not misleading in any material respect; or
19 (l) there shall have occurred or any notice shall have been given of any intended downgrade, suspension, withdrawal or negative change in credit watch status by any national credit agency of the Insurer; or
(m) a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or
(n) any rating of the Bonds shall have been downgraded, suspended or withdrawn or placed on negative outlook or negative watch by a national rating service, which, in the Underwriter’s reasonable opinion, materially adversely affects the marketability or market price of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds.
10. Contingency of Obligations. The obligations of the Successor Agency hereunder are subject to the performance by the Underwriter of its obligations hereunder.
11. Duration of Representations, Warranties, Agreements and Covenants. All representations, warranties, agreements and covenants of the Successor Agency shall remain operative and in full force and effect, regardless of any investigations made by or on behalf of the Underwriter or the Successor Agency and shall survive the Closing Date.
12. Expenses. (a) Except as set forth below and only upon the issuance of the Bonds, the Successor Agency will pay or cause to be paid all reasonable expenses incident to the performance of its obligations under this Bond Purchase Agreement, including, but not limited to, execution and delivery of the Bonds, costs of printing the Bonds, printing, distribution and delivery of the Preliminary Official Statement, the Official Statement and any amendment or supplement thereto, the fees and disbursements of Bond Counsel, Disclosure Counsel, and counsel to the Successor Agency, the fees and expenses of the Successor Agency’s accountants, fees of the Municipal Advisor, fees of the Fiscal Consultant, any fees charged by rating agencies for the rating of the Bonds and fees of the Trustee and the Escrow Bank. In the event this Bond Purchase Agreement shall terminate because of the default of the Underwriter, the Successor Agency will, nevertheless, pay, or cause to be paid, all of the expenses specified above.
(b) The Underwriter shall pay the fees and expenses of its counsel, all advertising expenses incurred in connection with the public offering of the Bonds, fees of the California Debt and Investment Advisory Commission, CUSIP fees and all other expenses incurred by it in connection with the public offering and distribution of the Bonds (including out-of-pocket expenses and related regulatory expenses).
13. Notices. Any notice or other communication to be given to the Successor Agency under this Bond Purchase Agreement may be given by delivering the same in writing to the Executive Director at the address referenced above and any notice or other communication to be given to the Underwriter under this Bond Purchase Agreement may be given by delivering the same in writing to Oppenheimer & Co. Inc., 135 Main Street, Suite 1700, San Francisco, California 94105, Attention: Municipal Capital Markets Group.
14. Parties in Interest. This Bond Purchase Agreement is made solely for the benefit of the Successor Agency and the Underwriter (including the successors or assigns of the Underwriter) 20 and no other person, including any purchaser of the Bonds, shall acquire or have any right hereunder or by virtue hereof.
15. Governing Law. This Bond Purchase Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and performed in California.
16. Headings. The headings of the paragraphs of this Bond Purchase Agreement are inserted for convenience of reference only and shall not be deemed to be a part hereof.
17. Severability. In case any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof.
18. Effectiveness. This Bond Purchase Agreement shall become effective upon its acceptance hereof by the Successor Agency.
S-1
19. Counterparts. This Bond Purchase Agreement may be executed in several counterparts which together shall constitute one and the same instrument.
Very truly yours,
OPPENHEIMER & CO. INC., as
Underwriter
By
Authorized Representative
The foregoing is hereby agreed to and accepted as
of the date first above written:
SUCCESSOR AGENCY TO THE DINUBA
REDEVELOPMENT AGENCY
By
Authorized Officer
Time of Execution: _____________ p.m.
California time
A-1
EXHIBIT A TO THE
BOND PURCHASE AGREEMENT
$________
SUCCESSOR AGENCY TO THE
DINUBA REDEVELOPMENT AGENCY
TAX ALLOCATION REFUNDING BONDS, SERIES 2024
MATURITY SCHEDULE
Maturity
(September 1)
Principal
Amount
Interest
Rate Yield Price
10% Test
Satisfied*
10% Test
Not
Satisfied
Subject to
Hold-TheOfferingPrice Rule
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
20__(T)_
_________________
(T) Term Bond.
(C) Priced to optional call at [par] on September 1, 20__. * At the time of execution of this Bond Purchase Agreement and assuming orders are confirmed by the close of the business day immediately following the date of this Bond Purchase Agreement.
B-1
EXHIBIT B
FORM OF ISSUE PRICE CERTIFICATE
$_______
SUCCESSOR AGENCY TO THE
DINUBA REDEVELOPMENT AGENCY
TAX ALLOCATION REFUNDING BONDS, SERIES 2024
FORM OF ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Oppenheimer & Co. Inc. (“Oppenheimer”), hereby certifies as set forth below with respect to the sale and issuance of the above-captioned bonds (the “Bonds”).
A. Issue Price.
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.
2. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(b) Issuer means the Successor Agency to the Dinuba Redevelopment Agency. (c) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(d) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.
The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (e) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
B-2
The representations set forth in this certificate are limited to factual matters only.
Nothing in this certificate represents Oppenheimer’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in a Certificate as to Arbitrage and Tax Compliance Procedures for the Bonds and with respect to compliance with the federal income tax rules affecting the Bonds, and by Stradling Yocca Carlson & Rauth LLP in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
Dated: ________, 2024 OPPENHEIMER & CO. INC.
By:
Authorized Officer
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES
(attached)
City Council Staff Report
Department: PUBLIC WORKS May 28, 2024
To: Mayor and City Council
From: George Avila, Public Works Director
By: Elva Patino, Business Manager
Subject:
Resolution No. 2024-35 Authorizing Submittal of a Regional Surface Transportation Exchange Program Claim for FY 23-24 (GA)
RECOMMENDATION
Council adopt Resolution No. 2024-35 authorizing the Public Works Director to submit a claim to the Tulare County Association of Governments (TCAG) to exchange the City's Fiscal Year 2023-2024 Regional Surface Transportation Program (RSTP) funds for State Highway Account Funds in the estimated amount of $158,306.
EXECUTIVE SUMMARY
Each year the City of Dinuba is allocated federal Regional Surface Transportation Program (RSTP) funds. This funding is designated for surface transportation improvements and must be spent in compliance with federal regulations. However, State law allows for RSTP funds to be exchanged for State Highway Account Funds that give the City more spending flexibility. In order to receive this money, the City must submit a claim to the Tulare County Association of Governments (TCAG) authorized by City Council Resolution. The amount allocated to the City of Dinuba for FY 2023-24 is estimated at $158,306.
OUTSTANDING ISSUES
None.
DISCUSSION
The Surface Transportation Program (STP) was established by the 1991 Federal Intermodal Surface Transportation Efficiency Act (ISTEA). The STP is administered by the U.S. Department of Transportation. STP funds may be used for public transportation capital improvements such as roads, bicycle and pedestrian facilities, and intercity or intracity bus terminals and bus facilities. The STP provides funding allocations for urban and rural cities.
The Tulare County Association of Governments (TCAG) receives regional STP (RSTP) funds on behalf of Tulare County. TCAG is expected to receive over $6 million dollars this fiscal year. TCAG distributes these funds to member cities using a population-based formula. The estimated allocation of RSTP funds for the City of Dinuba for FY 2023/24 is $158,306. Given the rural classification of Tulare County, state law allows for some jurisdictions to exchange their regional share of federal STP funding for State Highway Account Funds in an equal amount.
This exchange is beneficial to smaller cities because state funds have fewer restrictions, shorter environmental processes and no local match requirement. In short, this exchange gives Dinuba more spending flexibility.
The City of Dinuba has participated in the "RSTP Exchange Program" for many years. As in previous years, these funds will be deposited into the City's Gas Tax fund and will be used to fund a portion of the operating expenditures for the City's Transportation Services Division. These expenditures include employee salaries, debt service, and capital maintenance.
Resolution No. 2024-35 enclosed herein as Attachment 'A' will authorize the Public Works Director to submit a claim for regional STP funds to be exchanged for State Highway Accounts funds in the amount of $158,306 for FY 2023/24. This year's allocation is significantly lower than previous years given a recent change to how funds are allocated at a county-level. Staff is working with the Tulare County Association of Governments to identify strategies to help mitigate the impacts created by the reduction in revenue.
FISCAL IMPACT
The $158,306 allocation pays for a portion of the operating expenses of the City's Transportation Services Division.
PUBLIC HEARING
None.
ATTACHMENTS:
Description
Attachment 'A' Resolution 2024-35
RESOLUTION NO. 2024-35
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DINUBA AUTHORIZING
THE PUBLIC WORKS DIRECTOR TO FILE A REGIONAL SURFACE
TRANSPORTATION PROGRAM (RSTP) CLAIM FORM IN EXCHANGE FOR STATE HIGHWAY ACCOUNT FUNDS FOR FISCAL YEAR 2023-2024
WHEREAS, the Tulare County Association of Governments (TCAG) and the California Department of Transportation (Caltrans) have entered into a Standard Agreement contract to exchange unobligated balances of federal Regional Surface Transportation Program (RSTP) funds with non-federal State Highway Account funds; and
WHEREAS, Caltrans Division of Programming releases a 5-year ESTIMATE of RSTP Exchange Program apportionments for inclusion in the Federal Transportation Improvement Program (FTIP) Programming document every 2-years to California Metropolitan Planning Organizations (MPOs);
WHEREAS, TCAG is the designated MPO for Tulare County;
WHEREAS, the Annual RSTP Exchange Program fund apportionment is an ESTIMATE and subject to change during the fiscal year (2023-2024) due to many Federal Surface Transportation Bill variables including the annual appropriations act as well as other Congressional action (i.e. rescissions);
WHEREAS, a FINAL RSTP Exchange apportionment amount is published at the end of the FY23-24 and can be different from the ESTIMATE RSTP Exchange apportionment figure;
WHEREAS, annually, Caltrans sends TCAG a Standard Agreement contract that includes an RSTP Exchange Program apportionment figure; WHEREAS, TCAG applies a RSTP population based distribution formula using current Department of Finance (DOF) population estimates (January 2024) to the RSTP apportionment to determine the amount of RSTP Exchange funds to be distribution to TCAG member jurisdictions;
WHEREAS, the City of Dinuba has an ESTIMATE RSTP Exchange Program fund apportionment amount available to claim in FY23-24 is $158,306; WHEREAS, payment of the ESTIMATE RSTP Exchange fund claim will be subject to all conditions specified in the fully executed standard contract agreement between TCAG and Caltrans, as well as the TCAG RSTP Exchange Claim form requirements: Projects to be funded with this claim are only those projects that are defined under Sections 133(b) and 133(c) of Title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code.
WHEREAS, if the FINAL RSTP Exchange apportionment figure is higher for FY22-23 than the ESTIMATE RSTP Exchange apportionment figure, Caltrans would have to revise the RSTP Exchange Standard Agreement contract with the higher RSTP figure before TCAG could instruct the Tulare County Auditor Controller’s Officer to distribute a greater amount of RSTP Exchange Program funds to member agencies, than identified in this resolution;
WHEREAS, if the FINAL RSTP Exchange apportionment figure is lower for FY23-24 than the ESTIMATE RSTP Exchange apportionment amount, Caltrans does not have to revise the RSTP Exchange contract with the lower amount before TCAG could recalculate the available RSTP Exchange Program funds using the same population-based formula and then instruct the Tulare County Auditor Controller’s Officer to distribute the lower FY 23-24 FINAL RSTP Exchange Program fund amount to member agencies;
WHEREAS, the City of Dinuba has established special gas tax street improvement fund as a requirement to receive the RSTP Exchange Program funds; and WHEREAS, it is deemed in the best interest of the City of Dinuba the Public Works Director is authorized to sign the FY 23-24 RSTP Exchange Program fund claim form and to submit said claim form to TCAG for processing.
NOW THEREFORE, be it resolved that the Public Works Director of the City of Dinuba is authorized and directed to sign and file the above described FY 23-24 RSTP Exchange Program fund claim on behalf of the City of Dinuba in the amount of $158,306.
PASSED AND ADOPTED by the City Council of the City of Dinuba at a regular meeting held on Tuesday, May 28, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT: APPROVED:
___________________________________
Maribel Reynosa, Mayor
ATTEST:
_________________________________________
Maria Alaniz, City Clerk
City Council Staff Report
Department: CITY CLERK May 28, 2024
To: Mayor and City Council
From: Maria Alaniz, City Clerk/Human Resources Director By: Lupe Montejano, Billing and Collections Supervisor
Subject: Approval of City Council Meeting Minutes (MA)
RECOMMENDATION
Council to review and approve the City Council meeting of May 14, 2024 as presented.
EXECUTIVE SUMMARY
None.
OUTSTANDING ISSUES
None.
DISCUSSION
None.
FISCAL IMPACT
None.
PUBLIC HEARING
None required.
ATTACHMENTS:
Description
City Council Meeting Minutes, May 14, 2024.
City Council Staff Report
Department: FINANCE SERVICES May 28, 2024
To: Mayor and City Council
From: Karina Solis, Administrative Services Director
Subject:
Resolution Nos. 2024-37, 2024-38, 2024-39, 2024-40, 2024-41, 2024-42, 2024-43, 2024-44 declaring pursuant to California government code § 54220 et seq. that certain real property parcels located in Dinuba California are designated as surplus land and not necessary for the city’s use at this time, finding that such declaration is exempt from environmental review under the California Environmental Quality Act, and taking related actions (KS)
RECOMMENDATION
City Council adopt Eight (8) Resolutions, 2024-37, 2024-38, 2024-39, 2024-40, 2024- 41, 2024-42, 2024-43, and 2024-44 declaring pursuant to California Government Code § 54220 et seq. that certain real property parcels described below located in Dinuba California are designated as surplus land and not necessary for the City’s use at this time, finding that such declaration is exempt from environmental review under the California Environmental Quality Act, and taking related actions.
EXECUTIVE SUMMARY
The proposed action supports the City's goal to protect local government funding and its assets, therefore, it is recommended that the City Council adopt Eight (8) Resolutions declaring pursuant to California Government Code § 54220 et seq. that certain real property parcels located in Dinuba California are designated as surplus land and not necessary for the City’s use at this time, finding that such declaration is exempt from environmental review under the California Environmental Quality Act, and taking related actions.
The California Department of Housing and Community Development (the “HCD”) requires a separate resolution for each SLA (surplus land act) site. The zoning for the Sites includes M-1 (Light Industrial District), C-4 (Commercial General), R-1, 7.5 (One Family Residential) and RCO (Resource Conservation) (the “Applicable Zoning”). Eight (8) of the Sites were previously acquired by the of City of Dinuba for future development purposes and one (1) Site (i.e., APN 017-020-001) was acquired by the former Redevelopment Agency of the City of Dinuba and was transferred to the City for future development purposes by the Successor Agency to the Redevelopment Agency of the City of Dinuba (the “Successor Agency”).
The aforementioned Resolutions concern real property sites (the “Sites”) that collectively equal approximately 215.38 acres.
OUTSTANDING ISSUES
None.
DISCUSSION
The attached Resolutions concern the following real property sites (the “Sites”) that collectively equal approximately 215.38 acres:
i) Eight (8) adjacent vacant parcels (APNs 017-020-016, 017-020-017, 017-020-052, 017-020-053, 017-020-054, 017-020-055, 017-020-056 and 017-020-057) consisting of approximately 103.60 acres located south of West Sierra Way, north of Kamm Avenue, west of Monte Vista Drive (if extended) and east of Road 72 (if extended) (Site No. 2; Zone M-1); and
ii) Four (4) vacant parcels (APNs 030-250-012, 030-250-013, 030-250-017 and 030- 250-018) (567 and 583 East La Vista Avenue and 1781 and 1797 South Wright Street) consisting of approximately 0.58 acres located near the corner of South Wright Street and East La Vista Avenue (Site No. 3; Zone R-1, 7.5); and iii) Two (2) adjacent vacant parcels (APNs 012-300-024 and 012-300-025) consisting of approximately 38.60 acres located at the northeast corner of Kamm Avenue and Road 70 (Site No. 4; Zone M-1); and
iv) One (1) vacant parcel (APN 012-290-049) consisting of approximately 57.45 acres located south of West Sierra Way, north of Kamm Avenue, west of Monte Vista Drive (if extended) and east of Road 72 (if extended) (Site No. 5-1; Zone R-1- 6); and
v) One (1) vacant parcel (APN 012-300-010) consisting of approximately 7.50 acres located along the west side of Road 70, between Avenues 408 and 412 (Site No. 5-2; Zone RCO); and
vi) One (1) vacant parcel (APN 017-290-015) consisting of approximately 4.80 acres located east of Westgate Way, west of Monte Vista Drive, south of West El Monte Way and north of the Best Buy Distribution Center (Site No. 5-7; Zone C-4); and vii) Two (2) adjacent vacant parcels (APNs 018-041-040 and 018-041-041) consisting of approximately 1.52 acres located mid-block along the southern side of an unnamed alley between South College Avenue on the west and South California Street on the east (Site No. 5-8; Zone RCO); and
viii) One (1) improved parcel (APN 018-121-009) currently being used for public education purposes consisting of approximately 1.33 acres located at the southeast corner of South College Avenue and East Academy Way (920 South College Avenue, Dinuba, CA 93618) (Site No. 5-9; Zone RCO).
The California Department of Housing and Community Development (the “HCD”) requires a separate resolution for each SLA (defined below) site. The zoning for the Sites includes M-1 (Light Industrial District), C-4 (Commercial General), R-1, 7.5 (One Family Residential) and RCO (Resource Conservation) (the “Applicable Zoning”). Eight (8) of the Sites were previously acquired by the of City of Dinuba for future development purposes and one (1) Site (i.e., APN 017-020-001) was acquired by the former Redevelopment Agency of the City of Dinuba and was transferred to the City for future development purposes by the Successor Agency to the Redevelopment Agency of the City of Dinuba (the “Successor Agency”).
Pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by HCD (the “Guidelines”), in order for real property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines. The noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency.
The SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it. GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notices are included as Exhibit “A” to the Resolutions (the “Notice of Availability”).
The Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Sites consistent with the parameters for such negotiations provided by the SLA. Failure to follow the procedures described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of future development goals.
A Notice of Availability is not a request for proposals, does not bind the City to any disposition of its real property and the Sites are subject to the Applicable Zoning.
Further, the SLA does not impose any mandates or timeframes with respect to the disposition of real property. In addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA. Based on the foregoing, staff recommends that the Sites be declared surplus and not necessary for the City’s use and authorize the distribution of the Notices of Availability, thus enabling the completion a procedural step affecting the Sites.
The attached Resolutions have been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Pursuant to § 15060 (c) (3) of the CEQA Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of the attached Resolutions are exempt from CEQA because the actions described therein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described therein are not a “Project”, as defined within § 15378 of the CEQA Guidelines. If and when the Sites are sold to a purchaser and that purchaser proposes a use for the Sites that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
FISCAL IMPACT
The recommended action will does not have a fiscal impact. However, at such time that the eight (8) Sites that were previously acquired by the of City of Dinuba are sold, the net proceeds of sale will accrue to the City. And at such time that the Parcel that was previously acquired by the former Redevelopment Agency of the City of Dinuba and was transferred to the City by the Successor Agency (i.e., APN 017-020-001), the net proceeds of sale will be transferred to the Tulare County Auditor-Controller (the “CAC”) and thereafter the CAC will divide and distribute the net proceeds to the entitled taxing agencies, including the City, in proportion to their respective shares of the General Tax Levy.
PUBLIC HEARING
None.
ATTACHMENTS:
Description
Resolution No. 2024-37, Exhibit A., Notice of Availability Resolution No. 2024-38, Exhibit A., Notice of Availability Resolution No. 2024-39, Exhibit A., Notice of Availability Resolution No. 2024-40, Exhibit A., Notice of Availability Resolution No. 2024-41, Exhibit A., Notice of Availability Resolution No. 2024-42, Exhibit A., Notice of Availability Resolution No. 2024-43, Exhibit A., Notice of Availability Resolution No. 2024-44, Exhibit A., Notice of Availability Resolution 2024-37
RESOLUTION NO. 2024-37
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE
REAL PROPERTY LOCATED SOUTH OF WEST SIERRA WAY, NORTH OF KAMM AVENUE, WEST OF MONTE VISTA DRIVE (IF EXTENDED) AND EAST OF ROAD 72 (IF EXTENDED), (APNs 017-020-016, 017-020-017, 017-020-052, 017-020-053, 017- 020-054, 017-020-055, 017-020-056 AND 017-020-057), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE
AT THIS TIME, FINDING THAT SUCH DECLARATION IS EXEMPT FROM
ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT, AND TAKING RELATED ACTIONS
WHEREAS, this Resolution concerns eight (8) adjacent vacant parcels (APNs 017-020-016, 017-020-017, 017-020-052, 017-020-053, 017-020-054, 017-020-055, 017- 020-056 and 017-020-057) consisting of approximately 103.60 acres located south of West Sierra Way, north of Kamm Avenue, west of Monte Vista Drive (if extended) and east of Road 72 (if extended), Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and
WHEREAS, the Property is zoned as M-1 (Light Industrial District) (the “Applicable Zoning”) and was previously acquired by the of City of Dinuba for future development purposes; and
WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and -2-
Resolution 2024-37
WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
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Resolution 2024-37
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-37
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 2
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus City-owned land (“Property”):
Property Addresses: None: Approximately 103.60 acres located south of West Sierra Way, north of Kamm Avenue, west of
Monte Vista Drive (if extended) and east of Road 72
(if extended)
Assessor’s Parcel Nos.: 017-020-016, 017-020-017, 017-020-052, 017-020- 053, 017-020-054, 017-020-055, 017-020-056 and
017-020-057
Zoning: M-1 (Light Industrial)
General Plan Designation: M-1 (Light Industrial)
Current Use: Eight (8) vacant parcels
Copies of an aerial image and assessor map depicting the Property are attached. The M-l zoning district is to be applied to areas designated light industrial on the City’s General plan in order to reserve appropriately located areas for various types of less intense industrial plants and related activities. The Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes.
In addition, it is recommended that the Notice Recipients review Chapters 17.50, 17.54.30 -5-
Resolution 2024-37
and 17.71 of the City’s Zoning Ordinance, which is available on-line. Further, M-1 zoning prohibits residential uses.
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the City (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the City to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the City will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the City to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the City shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the City shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
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Resolution 2024-37
[email protected].
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-38
RESOLUTION NO. 2024-38
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE
REAL PROPERTY LOCATED NEAR THE CORNER OF SOUTH WRIGHT STREET AND EAST LA VISTA AVENUE (APNS 030-250-012, 030-250-013, 030-250-017 AND 030-250-018) (567 AND 583 EAST LA VISTA AVENUE AND 1781 AND 1797 SOUTH
WRIGHT STREET), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE AT THIS TIME, FINDING THAT SUCH
DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS WHEREAS, this Resolution concerns four (4) vacant parcels (APNs 030-250-012, 030-250-013, 030-250-017 and 030-250-018) (567 and 583 East La Vista Avenue and 1781 and 1797 South Wright Street) consisting of approximately 0.58 acres located near the corner of South Wright Street and East La Vista Avenue, Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and WHEREAS, the Property is zoned as R-1, 7.5 (One Family Residential) (the “Applicable Zoning”) and was previously acquired by the of City of Dinuba for future development purposes; and
WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and -2-
Resolution 2024-38
WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
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Resolution 2024-38
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-38
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 3
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: 567 and 583 East La Vista Avenue and 1781 and 1797 South Wright Street: Approximately 0.58
acres located at near the corner of South Wright
Street and East La Vista Avenue
Assessor’s Parcel Nos.: 030-250-012 and -013 and 030-250-017 and -018 Zoning: R-1, 7.5 (One Family Residential)
General Plan Designation: R-1, 7.5 (One Family Residential) Current Use: Four (4) vacant parcels
Copies of an aerial image and assessor map depicting the Property are attached. The R zoning district is intended primarily to provide living areas at locations designated by the City’s General Plan for medium low and medium density, involving single-family dwellings, with regulations designed to accomplish the following to: i) promote and encourage a suitable environment for family life; ii) provide space for community facilities needed to complement urban residential areas and for institutions which require a residential environment in accordance with policies of the General Plan and state law; and iii) provide for the location of a limited number of two-family (2) and three-family (3) dwelling units within certain predominantly single-family areas.
The Property (inclusive of the three parcels that abut the Property [“Adjacent Parcels”]) is currently in use as a storm water detention basin. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop an appropriate replacement flood control system (i.e., pipes, channels, pumps and/or other related improvements that are -5-
Resolution 2024-38
likely to be installed on the Adjacent Parcels) and otherwise restore the Property in such a way that it could be developed (i.e., demolition, adding fill material, engineering and compacting the appropriate fill material and re-grading the Property) in a manner that is consistent with the City’s Municipal Code and applicable building codes sufficient for the future development of the Property in a manner that is complementary with the adjacent neighborhood. Further, it is recommended that the Designated Parties review Chapters
17.20, 17.26.30 and 17.71 of the City’s Zoning Ordinance, which is available on-line.
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60-day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.” Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI. -6-
Resolution 2024-38
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-39
RESOLUTION NO. 2024-39
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE
REAL PROPERTY LOCATED AT THE NORTHEAST CORNER OF KAMM AVENUE AND ROAD 70 (APNS 012-300-024 AND 012-300-025), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE
AT THIS TIME, FINDING THAT SUCH DECLARATION IS EXEMPT FROM
ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT, AND TAKING RELATED ACTIONS
WHEREAS, this Resolution concerns two vacant parcels (APNs 012-300-024 and 012-300-025) consisting of approximately 38.60 acres located at the northeast corner of Kamm Avenue and Road 70, Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and
WHEREAS, the Property is zoned as M-1 (Light Industrial) (the “Applicable Zoning”) and was previously acquired by the of City of Dinuba for future development purposes; and
WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other -2-
Resolution 2024-39
penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the -3-
Resolution 2024-39
“CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-39
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 4
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: None: Approximately 38.60 acres located at the northeast corner of Kamm Avenue and Road 70
Assessor’s Parcel Nos.: 012-300-024 and 012-300-025
Zoning: M-1 (Light Industrial)
General Plan Designation: M-1 (Light Industrial)
Current Use: Two (2) vacant parcels
Copies of an aerial image and assessor map depicting the Property are attached. The M-l zoning district is to be applied to areas designated light industrial on the City’s General plan in order to reserve appropriately located areas for various types of less intense industrial plants and related activities. The Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes.
In addition, it is recommended that the Notice Recipients review Chapters 17.50, 17.54.30 and 17.71 of the City’s Zoning Ordinance, which is available on-line. Further, M-1 zoning prohibits residential uses.
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
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Resolution 2024-39
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
-6-
Resolution 2024-39
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-40
RESOLUTION NO. 2024-40
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE
REAL PROPERTY LOCATED SOUTH OF WEST SIERRA WAY, NORTH OF KAMM AVENUE, WEST OF MONTE VISTA DRIVE (IF EXTENDED) AND EAST OF ROAD 72 (IF EXTENDED) (APN 012-290-049), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE AT THIS TIME,
FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING
RELATED ACTIONS
WHEREAS, this Resolution concerns one (1) vacant parcel (APN 012-290-049), consisting of approximately 57.45 acres located south of West Sierra Way, north of Kamm Avenue, west of Monte Vista Drive (if extended) and east of Road 72 (if extended), Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and WHEREAS, the Property is zoned as R-1-6 (One-Family Residential) (the “Applicable Zoning”) and was previously acquired by the of City of Dinuba for future development purposes; and
WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other -2-
Resolution 2024-40
penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the -3-
Resolution 2024-40
“CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-40
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 5-1
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: None: Approximately 57.45 acres located south of West Sierra Way, north of Kamm Avenue, west of
Monte Vista Drive (if extended) and east of Road 72
(if extended)
Assessor’s Parcel Nos.: 012-290-049
Zoning: R-1-6 (One-Family Residential)
General Plan Designation: R-1-6 (One-Family Residential) Current Use: One (1) predominately vacant parcel
Copies of an aerial image and assessor map depicting the Property are attached. The R zoning district is intended primarily to provide living areas at locations designated by the City’s General Plan for medium low and medium density, involving single-family dwellings, with regulations designed to accomplish the following to: i) promote and encourage a suitable environment for family life; ii) provide space for community facilities needed to complement urban residential areas and for institutions which require a residential environment in accordance with policies of the General Plan and state law; and iii) provide for the location of a limited number of two-family (2) and three-family (3) dwelling units within certain predominantly single-family areas.
Other than a wastewater settling pond, a solar farm and a planned expansion area (both uses will be retained by the City), which together require approximately 50% of the Property (basically, the southern one-half of the parcel), the balance of the Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a -5-
Resolution 2024-40
prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes. Further, it is recommended that the Designated Parties review Chapters 17.20, 17.26.30 and 17.71 of the City’s Zoning Ordinance, which is available on-line.
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI. -6-
Resolution 2024-40
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-41
RESOLUTION NO. 2024-41
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE REAL PROPERTY LOCATED ALONG THE WEST SIDE OF ROAD 70, BETWEEN AVENUES 408 AND 412 (APN 012-300-010), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE AT THIS TIME,
FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING
RELATED ACTIONS
WHEREAS, this Resolution concerns one vacant parcel (APNs 012-300-010) consisting of approximately 7.50 acres located along the west side of Road 70, between Avenues 408 and 412, Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and
WHEREAS, the Property is zoned as RCO (Resource Conservation) (the “Applicable Zoning”) and was previously acquired by the of City of Dinuba for future development purposes; and
WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other -2-
Resolution 2024-41
penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the -3-
Resolution 2024-41
“CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-41
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 5-2
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: None: Approximately 7.50 acres located along the west side of Road 70, between Avenues 408 and
412
Assessor’s Parcel Nos.: 012-300-010
Zoning: RCO (Resource Conservation)
General Plan Designation: RCO (Resource Conservation)
Current Use: One (1) vacant parcel
Copies of an aerial image and assessor map depicting the Property are attached. The RCO district is intended to provide for permanent open spaces in areas of the community which exhibit scenic qualities, recreation potential and which are designated as open space, school, ponding basin or public facility by the general plan. The Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes. Further, it is recommended that the Designated Parties review Chapters 17.10, 17.26.30 and 17.71 of the City’s Zoning Ordinance, which is available on-line. Other than ancillary uses, residential uses are not permitted in the RCO zone.
-5-
Resolution 2024-41
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
-6-
Resolution 2024-41
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-42
RESOLUTION NO. 2024-42
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE
REAL PROPERTY LOCATED EAST OF WESTGATE WAY, WEST OF MONTE VISTA
DRIVE, SOUTH OF WEST EL MONTE WAY AND NORTH OF THE BEST BUY DISTRIBUTION CENTER (APN 017-290-015), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE AT THIS TIME,
FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING
RELATED ACTIONS
WHEREAS, this Resolution concerns one vacant parcel (APNs 017-290-015) consisting of approximately 4.80 acres located east of Westgate Way, west of Monte Vista Drive, south of West El Monte Way and north of the Best Buy Distribution Center, Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and WHEREAS, the Property is zoned as C-4 (Commercial General) (the “Applicable Zoning”) and was previously acquired by the of City of Dinuba for future development purposes; and
WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other -2-
Resolution 2024-42
penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the -3-
Resolution 2024-42
“CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-42
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
Site 5-7
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: None: Approximately 4.80 acres located east of Westgate Way, west of Monte Vista Drive, south of
West El Monte Way and north of the Best Buy
Distribution Center
Assessor’s Parcel Nos.: 017-290-015
Zoning: C-4 (Commercial General)
General Plan Designation: C-4 (Commercial General)
Current Use: One (1) vacant parcel
Copies of an aerial image and assessor map depicting the Property are attached. The C-4 district is primarily for establishments engaged in servicing equipment, materials and products, but which do not require the manufacturing, assembly, packaging or processing of articles or merchandise for distribution and retail sale. The Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes. Further, it is recommended that the Designated Parties review Chapters 17.46-1, 17.48.030 and 17.71 of the City’s Zoning Ordinance, which is available on-line. Other than a caretaker or watchman unit, residential uses are not permitted in the C-4 zone.
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Resolution 2024-42
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
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Resolution 2024-42
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps
Resolution 2024-43
RESOLUTION NO. 2024-43
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE
REAL PROPERTY LOCATED MID-BLOCK ALONG THE SOUTHERN SIDE OF AN
UNNAMED ALLEY BETWEEN SOUTH COLLEGE AVENUE ON THE WEST AND SOUTH CALIFORNIA STREET ON THE EAST, (APNS 018-041-040 AND 018-041- 041), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE AT THIS TIME, FINDING THAT SUCH
DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS WHEREAS, this Resolution concerns two vacant parcels (APNs 018-041-040 and 018-041-041) consisting of approximately 1.52 acres located mid-block along the southern side of an unnamed alley between South College Avenue on the west and South California Street on the east, Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and
WHEREAS, the Property is zoned as RCO (Resource Conservation) (the “Applicable Zoning”) and was previously acquired by the of City of Dinuba for a corporate yard and intermediate solid waste storage yard purposes; and WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and -2-
Resolution 2024-43
WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
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Resolution 2024-43
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-43
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 5-8
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
”):
Property Addresses: None: Approximately 1.52 acres located mid-block along the southern side of an unnamed alley
between South College Avenue on the west and
South California Street on the east
Assessor’s Parcel Nos.: 018-041-040 and 018-041-041
Zoning: RCO (Resource Conservation)
General Plan Designation: RCO (Resource Conservation)
Current Use: One (1) vacant parcel
Copies of an aerial image and assessor map depicting the Property are attached. The RCO district is intended to provide for permanent open spaces in areas of the community which exhibit scenic qualities, recreation potential and which are designated as open space, school, ponding basin or public facility by the general plan. The Property is located along an unevenly maintained unnamed alley way with limited access to improved City streets. The Property was formerly used as the City Corporate Yard and on occasion is temporarily being used as an intermediate solid waste storage yard. The Property may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes. Further, -5-
Resolution 2024-43
it is recommended that the Designated Parties review Chapters 17.46-1, 17.48.030 and
17.71 of the City’s Zoning Ordinance, which is available on-line. Other than ancillary uses, residential uses are not permitted in the RCO zone.
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure: Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
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Resolution 2024-43
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected]. The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-44
RESOLUTION NO. 2024-44
RESOLUTION OF CITY COUNCIL OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE
REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF SOUTH COLLEGE AVENUE AND EAST ACADEMY WAY (920 SOUTH COLLEGE AVENUE) (APN 018- 121-009), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE AT THIS TIME, FINDING THAT SUCH
DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS WHEREAS, this Resolution concerns one improved parcel (APN 018-121-009) consisting of approximately 1.33 acres located at the southeast corner of South College Avenue and East Academy Way (920 South College Avenue), Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and WHEREAS, the Property is zoned as RCO (Resource Conservation) (the “Applicable Zoning”) and is currently in use for public educations purposes; and WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines; and
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met) before the City may take action to dispose of it; and WHEREAS, GC § 54222, requires the City, if it declares land it owns to be surplus and not necessary for the City’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such notification is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with parameters for such negotiations provided by the SLA; and WHEREAS, failure to follow the procedure described in the SLA with respect to the noticing process and related actions, may subject the City to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of future development goals; and
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Resolution 2024-44
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the City to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, based on the foregoing, staff recommends that the Property be declared surplus and not necessary for the City’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of Dinuba, California, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The City Council hereby declares that the Property is surplus land and not necessary for the City’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Staff has determined that the City’s declaration that the Property is exempt surplus land does not have the potential for creating a significant effect on the -3-
Resolution 2024-44
environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines § 15060(c)(3) because it is not a project as defined by the CEQA Guidelines § 15378. Adoption of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Mayor
ATTEST:
Maria Alaniz, City Clerk
I, Maria Alaniz, City Clerk of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Mayor and City Council of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
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Resolution 2024-44
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 5-9
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: 920 South College Avenue, Dinuba, CA 93618:
Approximately 1.33 acres located at the southeast
corner of South College Avenue and East Academy
Way
Assessor’s Parcel Nos.: 018-121-009
Zoning: RCO (Resource Conservation)
General Plan Designation: RCO (Resource Conservation)
Current Use: Public Education Services
Copies of an aerial image and assessor map depicting the Property are attached. The RCO district is intended to provide for permanent open spaces in areas of the community which exhibit scenic qualities, recreation potential and which are designated as open space, school, ponding basin or public facility by the general plan. The Property is improved and is currently being used for public education purposes. The Property may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes. Further, it is recommended that the Designated Parties review Chapters 17.46-1, 17.48.030 and
17.71 of the City’s Zoning Ordinance, which is available on-line. Other than ancillary uses, residential uses are not permitted in the RCO zone. -5-
Resolution 2024-44
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure: Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Designated Parties are strongly encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
-6-
Resolution 2024-44
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected]. The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
City Council Staff Report
Department: FINANCE SERVICES May 28, 2024
To: Mayor and City Council
From: Karina Solis, Administrative Services Director
Subject:
Resolution No. 2024-36 Approving the Annual Amendment to the Investment Policy (KS)
RECOMMENDATION
Council approve amendment to update the City’s Investment Policy and to reflect updates based on the recommendations of California Debt and Investment Advisory Committee (CDIAC).
EXECUTIVE SUMMARY
This policy is updated to provide clarification on the timing of the reporting of investments. The policy also outlines the source of allowable investments and any limitations that are placed on these investments.
OUTSTANDING ISSUES
None.
DISCUSSION
California Debt and Investment Advisory Commission (CDIAC) updates the Local Agency Investment Guidelines annually. As part of the guidelines, CDIAC recommends that local agencies update their investment policies to ensure compliance with any changes to the guidelines set forth by the state. In adopting those recommendations the following sections of the City’s Investment Policy have been modified in order to provide clarity and abide by Government Code.
D. Allowable investments – The Money Market and Mutual Funds conditions for allowing for investment have been added per CDIACs recommendation. While the City does not currently have any Money Market or Mutual Funds, the recommendation has been added to the existing policy to ensure future compliance if the City decides to invest with these type of investments.
I. Reporting – This section now indicates the timing of the reports (quarterly) and the information included in the reports.
All new CDIAC recommendations were reviewed and the items that are relevant, or will potentially be relevant, to the City of Dinuba's investments are being incorporated.
FISCAL IMPACT
None.
PUBLIC HEARING
None.
ATTACHMENTS:
Description
A. Resolution No. 2024-36 Amending and Adopting the City Investment Policy; Exhibit 'A' Investment Policy
Attachment “A”
RESOLUTION 2024-36
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DINUBA, CALIFORNIA,
AMENDING AND ADOPTING THE CITY INVESTMENT POLICY
WHEREAS, the City of Dinuba, California has determined that, as a policy and practice of the City, any monies (“Surplus Funds”), or surplus money in, it’s treasury not required for the immediate necessities of the City, may be invested in such a manner as to maximize the return thereof for the benefit of the City, its citizens and its taxpayers; and WHEREAS, California Debt and Investment Advisory Committee (CDIAC) defines allowable investments for municipalities; and
WHEREAS, the City Council of the City of Dinuba adopted resolution number 2022-50 authorizing investment of excess funds into the Tulare County Treasury Pool; and
WHEREAS, the City Council of the City of Dinuba adopted resolution number 2022-61 authorizing investment of excess funds into the Tulare County Treasury Pool and Joint Powers Authorities as a method of investments; and
WHEREAS, the Administrative Services Director (Treasurer), is responsible for updating the City Investment Policy on an annual basis;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dinuba, amends and adopts the Investment Policy attached Hereto as Exhibit ‘A’, PASSED AND ADOPTED by the City Council of the City of Dinuba at a regular meeting held on Tuesday, May 28, 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
EXHIBIT ‘A’
INVESTMENT POLICY
OF THE
CITY OF DINUBA
A. PURPOSE AND SCOPE
This statement is intended to provide guidelines for the prudent investment of the City of Dinuba’s temporary idle cash for all funds, and outline the policies for maximizing the efficiency of the City’s cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash. It is intended that this policy cover all otherwise unrestricted funds and investment activities under the direct authority of the City Council the Board of the Successor Agency for the Dinuba Redevelopment Agency, and the Board of the Dinuba Financing Authority.
This policy is in compliance with City Charter Section 5.08 – Depositories and Investments.
B. OBJECTIVE
The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as investments meet the criteria established for safety and liquidity. It is the duty of the City Manager to protect, preserve, and maintain cash and investments placed in his/her trust on behalf of the citizens of the City.
C. CRITERIA FOR INVESTMENTS
The City of Dinuba operates its temporarily idle pooled cash investments under the prudent man rule. That rule states, in essence, that "in investing property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment considering the probable safety of their capital as well as the probable income to be derived."
The basic premise underlying the City's investment philosophy is, and will continue to be, to ensure that pecuniary assets are always safe and available when needed. Therefore, the criteria for selecting investments, and the order of priorities are:
1. SAFETY - The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. Safety of principal is the foremost objective of the investment program. Investments of the City of Dinuba shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
2. LIQUIDITY - This refers to the ability to “cash in” at any moment in time with a minimal chance of losing some portion of principal or interest. The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirement that might be reasonably anticipated.
3. RATE OF RETURN – Rate of return is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. Yield is a consideration only after the basic requirements of safety and liquidity have been met.
4. MATURITY – The maturity of all investment shall be selected to anticipate the cash needs of the City, thus avoiding forced liquidations.
D. ALLOWABLE INVESTMENTS
California Government Code defines allowable investments for municipalities. The California Debt and Investment Advisory Committee (CDIAC) provides a summary of allowable investments. The City’s allowable investments derived from CDIAC will be limited to the following categories:
o Local Agency Bonds
o Local Agency Investment Fund (LAIF)
o U.S. Treasury Obligations
o Negotiable Certificates of Deposit
o Non-negotiable Certificates of Deposit
o Medium-Term Notes
o Mutual Funds and Money Market Mutual Funds
Government Code requirements for local agency investment in Money Market and Mutual Funds
(1) Must receive the highest ranking or the highest letter and numerical rating by no less than two nationally recognized rating services; or Must retain an investment advisor who is registered or exempt from registration with the SEC and has at least five years' experience investing in specified securities and managing assets in excess of $500 million.
(2) For Mutual Funds: Must abide by the same investment restrictions and regulations that apply to public agencies in California [Section 53601(a-k, m-o). (3) For Money Market Funds: Must follow regulations specified by the SEC under the investment company act of 1940 (15 U.S.C. Section 80a-1, et seq.). o Collateralized Bank Deposits
o County Pooled Investment Funds
o Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
E. PERFORMANCE MEASUREMENT AND IMPAIRMENT
The City shall comply with Government Code 54646 (a)(b) and shall within 30 days of the end of each quarter, provide an analysis of the value of individual investments by determining the market value as of the date of the Report in Section I and determining whether an impairment exists. Impairment is defined as follows:
Investments are deemed “impaired” when either of the following occurs:
1. There is a significant decline (20% or more) in the fair value of the instrument as compared to its original costs; or
2. There is a prolonged decline in the fair value, i.e. for a period of more than one year, over the entire period for which the instrument has been held.
Recognized investment losses shall be allocated in the same manner used in Section H for interest allocation.
F. INVESTMENTS NOT ALLOWED
Investments not specifically stated under "Allowable Investments", such as common or preferred stock, convertible or corporate bonds, commodities, options, limited partnerships, negotiable CD's, uninsured deposits, etc.
G. REVIEW AND ANALYSIS OF PROSPECTIVE INVESTMENTS
The securities held by the City must be in compliance with Section D “Allowable Investments” at the time of purchase. Because some securities may not comply with Section D subsequent to the date of purchase, the City shall at least quarterly review the portfolio to identify those securities that do not comply. The City Manager shall report to the Council, the major and critical incidences of noncompliance identified through the review of the portfolio. Due to the complexity of the various investment instruments available and uncertainty of market conditions the City Manager may seek professional advice in making investment decisions in order to optimize investment selections.
The Administrative Services Director shall review this Investment Policy annually for any changes required by law or policy.
H. INTEREST ALLOCATION
Interest earned by the City, the Agency, and the Authority on their pooled investments will be allocated to any fund in accordance with the policies set by the City Manager.
I. REPORTING
The Administrative Services Director shall prepare a report of City Investments quarterly. This report will include the following:
1. A Statement of Compliance with the Investment Policy
2. A listing of individual securities and moneys held at the end of the reporting period to include:
a. The type of instrument.
b. The name of the issuer.
c. Purchase date, maturity date, and days to maturity.
d. Issuers rating.
e. Par and dollar amount invested in each security.
f. The current market value of securities as of the date of the report and the source of the valuation.
3. A Statement of Interest Earnings Report.
4. If applicable, a description of any funds, investments, or programs that are under the management of contracted parties but excluding funds deposited into the Local Agency Investment Fund administered by the State Treasurer.
This report will be submitted to City Council.
J. BANKING INSTITUTION PREFERENCE
As often as is practical, but in no case not less than once each five years, the Administrative Services Director will review the banking services provided to the City by its primary banking institution including, but not limited to, monthly service charges, charges for direct deposit, charges for account reconciliation, and interest earned on deposits. Other banking institutions will be consulted in order to obtain quality services for the City at the most reasonable cost to the City. If a change of institutions is warranted, the Administrative Services Director will recommend the change to the City Manager for concurrence.
Preference will be given to banking institutions having branch offices within the City of Dinuba.
K. DELEGATION OF AUTHORITY:
The City’s Charter provides for the investment of monies in Section 5.08 which states:
“The Finance Department shall receive and account for all revenues, monies and assets received by the city or any of its agencies from any and all sources.” The Administrative Services Director shall be designated as the Treasurer and shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.
City Council Staff Report
Department: Planning and Development May 28, 2024
To: Mayor and City Council
From: Karl Schoettler, City Planning Consultant
Subject:
Ordinance No. 2024-03 Second Reading and Adoption to prezone
18.6±acres for the Empire Estates annexation/subdivision (KSch)
RECOMMENDATION
Council to conduct the second reading, waive reading in full, and adopt Ordinance No. 2024-03 pre-zoning an 18.6± acre parcel on the north side of Sierra Way between Englehart Avenue and Road 70 to the "R-1-6" single family residential zone district.
EXECUTIVE SUMMARY
On 14, 2024, the City Council conducted a public hearing for the first reading of Ordinance No. 2024-03 approving the pre-zoning of an 18.6-acre parcel on the north side of Sierra Way (between Englehart Avenue and Road 70, to the "R-1-6" Single Family Residential Zone District, to permit the development of 75 single-family residential lots ("Empire Estates").
OUTSTANDING ISSUES
None.
DISCUSSION
On May 14, 2024, the City Council conducted a first reading of Ordinance No. 2024- 03 to pre-zone an 18.9-acre parcel located on the north side of Sierra Way between Englehart Avenue and Road 70. The City Council also initiated annexation of the site into the City and approved a Tentative Subdivision Map to establish 75 single-family residential lots
The Dinuba General Plan designates the site “Medium-Low Density Residential”. The R-1-6 zone is consistent with this designation.
The existing parcel is currently primarily used for agriculture (and also hosts an existing single family dwelling). Land to the north, west and south are also primarily agricultural with several rural dwellings. Land to the east is developed with Centennial Park, while land to the northeast is occupied by the Best Buy distribution center.
The City Council conducted the first reading and public hearing for Ordinance No. 2024-03 on May 14, 2024. Staff recommends City Council conduct the second reading, waive the reading in full and adopt the Ordinance, which will take effect 30 days after it is adopted.
FISCAL IMPACT
None.
PUBLIC HEARING
A public hearing notice was published in the Midvalley Times ten days prior to the City Council's public hearing on May 14, 2024.
ATTACHMENTS:
Description
A. Ordinance 2024-03 (Empire Estates)
ATTACHMENT “B”
1 ORDINANCE NO. 2024-03
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DINUBA PRE-ZONING ONE PARCEL
LOCATED ON THE NORTH SIDE OF SIERRA WAY BETWEEN ENGLEHART AVENUE ON THE EAST AND ROAD 70 ON THE WEST.
THE CITY COUNCIL OF THE CITY OF DINUBA HEREBY DOES ORDAIN:
SECTION 1. FINDINGS.
(a) The City of Dinuba administers a Zoning Ordinance (Title 17 of the Dinuba Municipal Code), including a map that designates all parcels of land with specific zoning classifications.
(b) The purpose of zoning is to facilitate a well-planned City and to avoid land use conflicts, among other objectives.
(c) The City has received an application for annexation, prezoning and establishment of a single family residential subdivision on one parcel located on the north side of Sierra Way between Englehart Avenue and Road 70.
(d) The Assessor Parcel Number of the subject parcel is 012-290-011. (e) The purpose of the zone change is to facilitate annexation of the site and development of a single family residential subdivision. (f) The proposed zone change is shown on Exhibit 1.
SECTION 2. SEVERABILITY.
Each of the provisions of this ordinance is severable from all other provisions. If any article, section, subsection, paragraph, sentence, clause or phrase of this ordinance is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance.
SECTION 3. The City Clerk is hereby directed to cause a summary of this Ordinance to be published by one insertion in a newspaper of general circulation in the community at least five (5) days prior to adoption and again fifteen (15) days after its adoption. If a summary of the ordinance is published, then the City Clerk shall cause a certified copy of the full text of the proposed ordinance to be posted in the office of the City Clerk at least five days prior to the Council meeting at which the ordinance is adopted and again after the meeting at which the ordinance is adopted. The summary shall be approved by the City Attorney.
City of Dinuba
Ordinance 2024-03 (Empire Estates)
2 This Ordinance shall take effect and be in full force thirty (30) days from and after its adoption.
SECTION 5. The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Dinuba on the 14th day of May, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________________
Maribel Reynosa, Mayor of the City of Dinuba
ATTEST:
____________________________________
Maria Ananiz, City Clerk
City of Dinuba
Ordinance 2024-03 (Empire Estates)
3 EXHIBIT 1
City Council Staff Report
Department: FINANCE SERVICES May 28, 2024
To: Mayor and City Council
From: Karina Solis, Administrative Services Director
Subject:
Successor Agency of the former Dinuba Redevelopment Agency Resolution Nos. 2024-3, 2024-4, and 2024-5 declaring pursuant to California government code § 54220 et seq. that certain real property parcels located in Dinuba California are designated as surplus land and not necessary for the Successor Agency’s use at this time, finding that such declaration is exempt from environmental review under the California Environmental Quality Act, and taking related actions (KS)
RECOMMENDATION
Successor Agency of the Redevelopment Agency of the City of Dinuba adopt three Resolutions, Nos. 2024-3, 2024-4, and 2024-5 declaring pursuant to California Government Code § 54220 et seq. that certain real property parcels described below located in Dinuba California are designated as surplus land and not necessary for the Successor Agency’s use at this time, finding that such declaration is exempt from environmental review under the California Environmental Quality Act, and taking related actions.
EXECUTIVE SUMMARY
The proposed action supports the City's goal to protect local government funding and its assets, therefore, it is recommended that the Successor Agency adopt three Resolutions declaring pursuant to California Government Code § 54220 et seq. that certain real property parcels described below located in Dinuba California are designated as surplus land and not necessary for the Successor Agency’s use at this time, finding that such declaration is exempt from environmental review under the California Environmental Quality Act, and taking related actions.
Together, the Sites consist of approximately 97.44 acres. The California Department of Housing and Community Development (the “HCD”) requires a separate resolution for each SLA (defined below) site. The Sites are zoned as M-1 (Light Industrial District) (the “Applicable Zoning”). The Sites were previously acquired by the former Redevelopment Agency of the City of Dinuba for economic development purposes and upon dissolution of all California redevelopment agencies the Successor Agency to the Redevelopment Agency of the City of Dinuba (the “Successor Agency”) assumed responsibility for the ultimate disposition of the Sites pursuant to the Successor Agency’s California Department of Finance (the “DOF”) approved LongRange Property Management Plan (the “LRPMP”).
OUTSTANDING ISSUES
None.
DISCUSSION
The attached Resolutions concern three Sites:
i) Seven (7) adjacent vacant adjacent parcels (APNs 017-020-041, 017-020-042, 017- 020-047 and 017-020-051, 017-273-001, 017-320-001 & 017-320-003) consisting of approximately 74.31 acres located south of West Sierra Way, north of Kamm Avenue, west of South Alta Avenue and east of Monte Vista Drive (if extended southward) (Site No. 1; Zone M-1); and
ii) One (1) vacant parcel (APN 017-020-001) consisting of approximately 20.0 acres located south of West Sierra Way, north of Kamm Avenue, west of Road 74 and east of Road 72 (if extended) (also known as Horseman Ditch) (Site 5-3; Zone M-1). iii) One (1) vacant parcel (APN 017-020-049) consisting of approximately 3.13 acres located at the southeast corner of West Sierra Way and Monte Vista Drive (if extended) (Site 5-5; Zone M-1).
Together, the Sites consist of approximately 97.44 acres. The California Department of Housing and Community Development (the “HCD”) requires a separate resolution for each SLA (defined below) site. The Sites are zoned as M-1 (Light Industrial District) (the “Applicable Zoning”). The Sites were previously acquired by the former Redevelopment Agency of the City of Dinuba for economic development purposes and upon dissolution of all California redevelopment agencies the Successor Agency to the Redevelopment Agency of the City of Dinuba (the “Successor Agency”) assumed responsibility for the ultimate disposition of the Sites pursuant to the Successor Agency’s California Department of Finance (the “DOF”) approved LongRange Property Management Plan (the “LRPMP”).
Within the LRPMP, the Successor Agency has designated and purposed the Sites for sale only (leasing is not an option) subject to the procedures described therefor within the LRPMP. Failure to dispose of the Sites consistent with the LRPMP and the applicable provisions of the California Health and Safety Code (“HSC”) and to thereafter cause the distribution of the net land sale proceeds to the affected taxing entities, may subject the Successor Agency to litigation by one or more of the affected taxing entities, may frustrate the ability of the City to further its achievement of economic development and furthermore, delay the Successor Agency’s eligibility for its ultimate dissolution until such time that its real property assets are sold.
Pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by HCD (the “Guidelines”), in order for real property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines for which Successor Agency-owned property is not exempt. The noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency.
The SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met, which per the HSC and the LRPMP do not apply to the Successor Agency) before the Successor Agency may take action to dispose of it. GC § 54222, requires the Successor Agency, if it declares land it owns to be surplus and not necessary for the Successor Agency’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such Notice is included as Exhibit “A” to the Resolutions (the “Notice of Availability”).
The Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with the parameters for such negotiations provided by the SLA.
Failure to follow the procedures described in the SLA with respect to the noticing process and related actions, may subject the Successor Agency to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of economic development goals.
A Notice of Availability is not a request for proposals, does not bind the Successor Agency to any disposition of its real property and the Sites are subject to the Applicable Zoning. Further, the SLA does not impose any mandates or timeframes with respect to the disposition of real property. In addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA.
Because the required disposition procedures related to the LRPMP are subject to being protracted (i.e., because separate Countywide Oversight Board and DOF approvals, or waivers, are required), staff recommends that the Sites be declared surplus and not necessary for the Successor Agency’s use and authorize the distribution of the Notices of Availability, thus enabling the completion a procedural step affecting the Sites.
The attached Resolutions have been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Pursuant to § 15060 (c) (3) of the CEQA Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of the attached Resolutions are exempt from CEQA because the actions described therein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described therein are not a “Project”, as defined within § 15378 of the CEQA Guidelines. If and when the Sites are sold to a purchaser and that purchaser proposes a use for the Sites that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
FISCAL IMPACT
The recommended action will does not have a fiscal impact. However, at such time in the future the Sites are sold, the net proceeds of sale will be transferred to the Tulare County Auditor-Controller (the “CAC”) and thereafter the CAC will divide and distribute the net proceeds to the entitled taxing agencies, including the City, in proportion to their respective shares of the General Tax Levy.
PUBLIC HEARING
None.
ATTACHMENTS:
Description
Resolution No. 2024-3, Exhibit A., Notice of Availability.
Resolution No. 2024-4, Exhibit A., Notice of Availability.
Resolution No. 2024-5, Exhibit A., Notice of Availability.
Resolution 2024-3
RESOLUTION NO. 2024-3
RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA
GOVERNMENT CODE § 54220 ET SEQ. THAT THE REAL PROPERTY LOCATED
SOUTH OF WEST SIERRA WAY, NORTH OF KAMM AVENUE, WEST OF SOUTH
ALTA AVENUE AND EAST OF MONTE VISTA DRIVE (IF EXTENDED SOUTHWARD) (APNS 017-020-041, 017-020-042, 017-020-047 AND 017-020-051, 017-273-001, 017- 320-001 & 017-320-003), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE SUCCESSOR AGENCY’S USE AT THIS
TIME, FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING
RELATED ACTIONS
WHEREAS, this Resolution concerns that vacant real property (APNs 017-020- 041, 017-020-042, 017-020-047 and 017-020-051, 017-273-001, 017-320-001 & 017- 320-003) consisting of approximately 74.31 acres located south of West Sierra Way, north of Kamm Avenue, west of South Alta Avenue and east of Monte Vista Drive (if extended southward), Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and
WHEREAS, the Property is zoned as M-1 (Light Industrial District) (the “Applicable Zoning”); and
WHEREAS, the Property was previously acquired by the former Redevelopment Agency of the City of Dinuba for economic development purposes and upon dissolution of all California redevelopment agencies the Successor Agency to the Redevelopment Agency of the City of Dinuba (the “Successor Agency”) assumed responsibility for the ultimate disposition of the Property pursuant to the Successor Agency’s California Department of Finance (the “DOF”) approved Long-Range Property Management Plan (the “LRPMP”); and
WHEREAS, within the LRPMP, the Successor Agency has designated and purposed the Property for sale only (leasing is not an option) subject to the procedures described therefor within the LRPMP and has identified it as Site No. 16; and WHEREAS, failure to dispose of the Property consistent with the LRPMP and the applicable provisions of the California Health and Safety Code (“HSC”) and to thereafter cause the distribution of net land sale proceeds to the affected taxing entities, may subject the Successor Agency to litigation by one or more of the affected taxing entities, may frustrate the ability of the City to further its achievement of economic development and furthermore, delay the Successor Agency’s eligibility for its ultimate dissolution until such time that its real property assets are sold; and WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must -2-
Resolution 2024-3
first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines for which Successor Agency-owned property is not exempt; and WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met, which per the HSC and the LRPMP do not apply to the Successor Agency) before the Successor Agency may take action to dispose of it; and WHEREAS, GC § 54222, requires the Successor Agency, if it declares land it owns to be surplus and not necessary for the Successor Agency’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such Notice is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with the parameters for such negotiations provided by the SLA; and
WHEREAS, failure to follow the procedures described in the SLA with respect to the noticing process and related actions, may subject the Successor Agency to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of economic development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the Successor Agency to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, because the required disposition procedures related to the LRPMP are subject to being protracted (i.e., because separate Countywide Oversight Board and DOF approvals, or waivers, are required), staff recommends that the Property be declared surplus and not necessary for the Successor Agency’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
-3-
Resolution 2024-3
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Board of Directors of the Successor Agency to the Redevelopment Agency of the City of Dinuba, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The Successor Agency hereby declares that the Property is surplus land and not necessary for the Successor Agency’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Pursuant to § 15060 (c) (3) of the CEQA Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines.
If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk, in her capacity as Secretary to the Successor Agency to the Redevelopment Agency of the City of Dinuba, is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the Successor Agency are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption. -4-
Resolution 2024-3
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Chairperson
Successor Agency to the
Redevelopment Agency of the
City of Dinuba
ATTEST:
Maria Alaniz, Secretary
Successor Agency to the
Redevelopment Agency of the
City of Dinuba
I, Maria Alaniz, Secretary to the Successor Agency to the Redevelopment Agency of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Board of Directors for the Successor Agency to the Redevelopment Agency of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
-5-
Resolution 2024-3
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 1
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the Successor Agency to the Redevelopment Agency of the City of Dinuba (“Successor Agency”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: None: Approximately 74.31 acres located south of West Sierra Way, north of Kamm Avenue, west of
South Alta Avenue and east of Monte Vista Drive (if
extended southward)
Assessor’s Parcel Nos.: 017-020-041, 017-020-042, 017-020-047 and 017- 020-051, 017-273-001, 017-320-001 & 017-320-003
Zoning: M-1 (Light Industrial)
General Plan Designation: M-1 (Light Industrial)
Current Use: Seven (7) vacant parcels
Copies of an aerial image and assessor map depicting the Property are attached. The M-1 zoning district is to be applied to areas designated light industrial on the City’s General plan in order to reserve appropriately located areas for various types of less intense industrial plants and related activities. The Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes. In addition, it is recommended that the Notice Recipients review Chapters 17.50, 17.54.30 and 17.71 of the City’s Zoning Ordinance, which is available on-line. Further, M-1 zoning prohibits residential uses. -6-
Resolution 2024-3
In addition, the Property is subject to the Successor Agency’s Long-Range Property Management Plan (“LRPMP”), which requires the Property to be sold (leasing is not an option) and may elongate the Property’s pre-development phase (i.e., because separate Countywide Oversight Board and California Department of Finance approvals, or waivers, are required). Therefore, all references herein to a possible lease of the Property are included only as an obligation of the SLA and do not apply to the Property. Refer to Site No. 17 on pages 63 to 66 of the LRPMP at this link:
https://www.dinuba.org/images/2017/Dinuba-LRPMP.pdf
The Successor Agency intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the Successor Agency or the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the Successor Agency receives more than one NOI during the 60-day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.” -7-
Resolution 2024-3
Notice Recipients are encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-4
RESOLUTION NO. 2024-4
RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA
GOVERNMENT CODE § 54220 ET SEQ. THAT THE REAL PROPERTY LOCATED SOUTH OF WEST SIERRA WAY, NORTH OF KAMM AVENUE, WEST OF ROAD 74 AND EAST OF ROAD 72 (IF EXTENDED) (ALSO KNOWN AS HORSEMAN DITCH) (APN 017-020-001), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE SUCCESSOR AGENCY’S USE AT THIS TIME,
FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING
RELATED ACTIONS
WHEREAS, this Resolution concerns that vacant real property (APN 017-020- 001) consisting of approximately 20.00 acres located south of West Sierra Way, north of Kamm Avenue, west of Road 74 and east of Road 72 (if extended) (also known as Horseman Ditch) Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and
WHEREAS, the Property is zoned as M-1 (Light Industrial District) (the “Applicable Zoning”); and
WHEREAS, the Property was previously acquired by the former Redevelopment Agency of the City of Dinuba for economic development purposes and upon dissolution of all California redevelopment agencies the Successor Agency to the Redevelopment Agency of the City of Dinuba (the “Successor Agency”) assumed responsibility for the ultimate disposition of the Property pursuant to the Successor Agency’s California Department of Finance (the “DOF”) approved Long-Range Property Management Plan (the “LRPMP”); and
WHEREAS, within the LRPMP, the Successor Agency has designated and purposed the Property for sale only (leasing is not an option) subject to the procedures described therefor within the LRPMP and is identified as Site No. 15; and WHEREAS, failure to dispose of the Property consistent with the LRPMP and the applicable provisions of the California Health and Safety Code (“HSC”) and to thereafter cause the distribution of net land sale proceeds to the affected taxing entities, may subject the Successor Agency to litigation by one or more of the affected taxing entities, may frustrate the ability of the City to further its achievement of economic development and furthermore, delay the Successor Agency’s eligibility for its ultimate dissolution until such time that its real property assets are sold; and WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines for which Successor Agency-owned property is not exempt; and -2-
Resolution 2024-4
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met, which per the HSC and the LRPMP do not apply to the Successor Agency) before the Successor Agency may take action to dispose of it; and WHEREAS, GC § 54222, requires the Successor Agency, if it declares land it owns to be surplus and not necessary for the Successor Agency’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such Notice is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with the parameters for such negotiations provided by the SLA; and
WHEREAS, failure to follow the procedures described in the SLA with respect to the noticing process and related actions, may subject the Successor Agency to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of economic development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the Successor Agency to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, because the required disposition procedures related to the LRPMP are subject to being protracted (i.e., because separate Countywide Oversight Board and DOF approvals, or waivers, are required), staff recommends that the Property be declared surplus and not necessary for the Successor Agency’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because -3-
Resolution 2024-4
the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Board of Directors of the Successor Agency to the Redevelopment Agency of the City of Dinuba, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The Successor Agency hereby declares that the Property is surplus land and not necessary for the Successor Agency’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Pursuant to § 15060 (c) (3) of the CEQA Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines.
If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk, in her capacity as Secretary to the Successor Agency to the Redevelopment Agency of the City of Dinuba, is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the Successor Agency are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption. -4-
Resolution 2024-4
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Chairperson
Successor Agency to the
Redevelopment Agency of the
City of Dinuba
ATTEST:
Maria Alaniz, Secretary
Successor Agency to the
Redevelopment Agency of the
City of Dinuba
I, Maria Alaniz, Secretary to the Successor Agency to the Redevelopment Agency of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Board of Directors for the Successor Agency to the Redevelopment Agency of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
-5-
Resolution 2024-4
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 5-3
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the City of Dinuba (“City”) (on behalf of the Successor Agency to the Redevelopment Agency of the City of Dinuba) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus City-owned land (“Property”):
Property Addresses: None: Approximately 20.00 acres located south of West Sierra Way, north of Kamm Avenue, west of
Road 74 and east of Road 72 (if extended) (also
known as Horseman Ditch)
Assessor’s Parcel No.: 017-020-001
Zoning: M-1 (Light Industrial)
General Plan Designation: M-1 (Light Industrial)
Current Use: One (1) vacant parcel
Copies of an aerial image and assessor map depicting the Property are attached. The M-l zoning district is to be applied to areas designated light industrial on the City’s General plan in order to reserve appropriately located areas for various types of less intense industrial plants and related activities. The Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes.
In addition, it is recommended that the Notice Recipients review Chapters 17.50, 17.54.30 and 17.71 of the City’s Zoning Ordinance, which is available on-line. Further, M-1 zoning prohibits residential uses.
-6-
Resolution 2024-4
In addition, pursuant to Resolutions Nos. 2022-48 (Successor Agency) and 2022-49 (City), the Successor Agency transferred fee ownership of the Property to the City along with the responsibility to manage the sale or lease of the Property consistent with certain disposition procedures and requirements, as more particularly described within the Dinuba Successor Agency’s Long-Range Property Management Plan (“LRPMP”), which may elongate the Property’s pre-development phase. Refer to Site No. 15 on pages 54 to 56 of the LRPMP at this link:
https://www.dinuba.org/images/2017/Dinuba-LRPMP.pdf
The City intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the City (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the City to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the City will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the City to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the City shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the City shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the City receives more than one NOI during the 60- day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.”
Notice Recipients are encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI.
-7-
Resolution 2024-4
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _______ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
Resolution 2024-5
RESOLUTION NO. 2024-5
RESOLUTIONS OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF DINUBA DECLARING PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54220 ET SEQ. THAT THE REAL PROPERTY LOCATED AT
THE SOUTHEAST CORNER OF WEST SIERRA WAY AND MONTE VISTA DRIVE (IF EXTENDED) (APN 017-020-049), DINUBA CALIFORNIA IS DESIGNATED AS SURPLUS LAND AND NOT NECESSARY FOR THE SUCCESSOR AGENCY’S USE
AT THIS TIME, FINDING THAT SUCH DECLARATION IS EXEMPT FROM
ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT, AND TAKING RELATED ACTIONS
WHEREAS, this Resolution concerns that vacant real property (APN 017-020- 049) consisting of approximately 3.13 acres located at the southeast corner of West Sierra Way and Monte Vista Drive (if extended), Dinuba, California described within Exhibit “A” to this Resolution, (the “Property”); and
WHEREAS, the Property is zoned as M-1 (Light Industrial District) (the “Applicable Zoning”); and
WHEREAS, the Property was previously acquired by the former Redevelopment Agency of the City of Dinuba for economic development purposes and upon dissolution of all California redevelopment agencies the Successor Agency to the Redevelopment Agency of the City of Dinuba (the “Successor Agency”) assumed responsibility for the ultimate disposition of the Property pursuant to the Successor Agency’s California Department of Finance (the “DOF”) approved Long-Range Property Management Plan (the “LRPMP”); and
WHEREAS, within the LRPMP, the Successor Agency has designated and purposed the Property for sale only (leasing is not an option) subject to the procedures described therefor within the LRPMP and is identified as Site No. 17; and WHEREAS, failure to dispose of the Property consistent with the LRPMP and the applicable provisions of the California Health and Safety Code (“HSC”) and to thereafter cause the distribution of net land sale proceeds to the affected taxing entities, may subject the Successor Agency to litigation by one or more of the affected taxing entities, may frustrate the ability of the City to further its achievement of economic development and furthermore, delay the Successor Agency’s eligibility for its ultimate dissolution until such time that its real property assets are sold; and WHEREAS, pursuant to the California Surplus Property Land Act, California Government Code (the “GC”) § 54220 et seq. (the “SLA”) and the Guidelines issued by the California Department of Housing and Community Development (the “HCD”) (the “Guidelines”), in order for the Property to be disposed of, for any purpose, such land must first undergo the noticing process set forth in the SLA and expounded upon by the Guidelines for which Successor Agency-owned property is not exempt; and -2-
Resolution 2024-5
WHEREAS, the noticing process requires that a written notice be issued calling for written expressions of interest after the public entity owner has designated such land as surplus by the taking of a formal action at a public meeting of such public agency; and WHEREAS, the SLA, as expounded upon by the Guidelines, provides that such land shall be declared either surplus land or exempt surplus land (if specific criteria are met, which per the HSC and the LRPMP do not apply to the Successor Agency) before the Successor Agency may take action to dispose of it; and WHEREAS, GC § 54222, requires the Successor Agency, if it declares land it owns to be surplus and not necessary for the Successor Agency’s use, to provide written notice thereof to certain local agencies and housing sponsors designated by HCD (the “Notice Recipients”); the form of such Notice is included as Exhibit “A” to this Resolution (the “Notice of Availability”); and
WHEREAS, the Notice of Availability provides the Notice Recipients a 60-day opportunity to provide a written expression of interest to negotiate for the sale or lease of the Property consistent with the parameters for such negotiations provided by the SLA; and
WHEREAS, failure to follow the procedures described in the SLA with respect to the noticing process and related actions, may subject the Successor Agency to financial and other penalties and measures and may frustrate the ability of the City to further its achievement of economic development goals; and
WHEREAS, the Notice of Availability is not a request for proposals, does not bind the Successor Agency to any disposition of the Property and the Property is subject to the Applicable Zoning; and
WHEREAS, the SLA does not impose any mandates or timeframes with respect to the disposition of real property; and
WHEREAS, in addition to the foregoing, under the SLA and the Guidelines, HCD has certain monitoring responsibilities concerning negotiations with Notice Recipients, if any, for the purpose of confirming that such negotiations were conducted within the parameters described in the SLA; and
WHEREAS, because the required disposition procedures related to the LRPMP are subject to being protracted (i.e., because separate Countywide Oversight Board and DOF approvals, or waivers, are required), staff recommends that the Property be declared surplus and not necessary for the Successor Agency’s use and authorize the distribution of the Notice of Availability, thus enabling the completion a procedural step affecting the Property; and
WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because -3-
Resolution 2024-5
the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines; and
WHEREAS, if and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met.
THEREFORE, BE IT RESOLVED, by the Board of Directors of the Successor Agency to the Redevelopment Agency of the City of Dinuba, as follows:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The Successor Agency hereby declares that the Property is surplus land and not necessary for the Successor Agency’s use at this time and authorizes the distribution of the Notice of Availability as prescribed by the SLA.
3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (the “CEQA”). Pursuant to § 15060 (c) (3) of the CEQA Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “Project”, as defined within § 15378 of the CEQA Guidelines.
If and when the Property is sold to a purchaser and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
4. The City Clerk, in her capacity as Secretary to the Successor Agency to the Redevelopment Agency of the City of Dinuba, is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
5. The officers and staff of the Successor Agency are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
6. This Resolution shall take effect upon the date of its adoption. -4-
Resolution 2024-5
PASSED, ADOPTED AND APPROVED this __ day of ________, 2024 by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Maribel Reynosa, Chairperson
Successor Agency to the
Redevelopment Agency of the
City of Dinuba
ATTEST:
Maria Alaniz, Secretary
Successor Agency to the
Redevelopment Agency of the
City of Dinuba
I, Maria Alaniz, Secretary to the Successor Agency to the Redevelopment Agency of the City of Dinuba, certify the foregoing is the full and true Resolution No. 2024-__ passed and adopted by the Board of Directors for the Successor Agency to the Redevelopment Agency of the City of Dinuba at a regular meeting held on _________ __, 2024, by the above noted vote.
-5-
Resolution 2024-5
EXHIBIT “A”
NOTICE OF AVAILABILITY OF SURPLUS LAND
(Via Email)
SITE 5 -5
Date: _______ __, 2024
TO: Interested Local Agencies and Housing Sponsors
RE: Notice of Availability of Surplus Land in the City of Dinuba Pursuant to California Government Code § 54220, et seq.
Pursuant to this Notice of Availability (“NOA”) and consistent with the provisions of California Government Code (“GC”) § 54220, et seq. (i.e., “Surplus Land Act” or “SLA”), the Successor Agency to the Redevelopment Agency of the City of Dinuba (“Successor Agency”) hereby notifies designated local agencies and housing sponsors (“Notice Recipients”) of the availability for lease or purchase of the following surplus Successor Agency-owned land (“Property”):
Property Addresses: None: Approximately 3.13 acres located at the southeast corner of West Sierra Way and Monte
Vista Drive (if extended)
Assessor’s Parcel No.: 017-020-049
Zoning: M-1 (Light Industrial)
General Plan Designation: M-1 (Light Industrial)
Current Use: One vacant parcel
Copies of an aerial image and assessor map depicting the Property are attached. The M-1 zoning district is to be applied to areas designated light industrial on the City’s General plan in order to reserve appropriately located areas for various types of less intense industrial plants and related activities. The Property is undeveloped (formerly agricultural) raw land that may require subdivision and the installation of certain types of backbone and in tract infrastructure improvements as a prerequisite to the development of the land and all such costs and any other costs related to the development of the Property are the responsibility of the land developer. It will be the sole responsibility of the lessee or buyer, at their sole expense, to develop the Property in such a way that it could be developed in a manner that is consistent with the City’s Municipal Code and applicable building codes. In addition, it is recommended that the Notice Recipients review Chapters 17.50, 17.54.30 and 17.71 of the City’s Zoning Ordinance, which is available on-line. Further, M-1 zoning prohibits residential uses. -6-
Resolution 2024-5
In addition, the Property is subject to the Successor Agency’s Long-Range Property Management Plan (“LRPMP”), which requires the Property to be sold (leasing is not an option) and may elongate the Property’s pre-development phase (i.e., because separate Countywide Oversight Board and California Department of Finance approvals, or waivers, are required). Therefore, all references herein to a possible lease of the Property are included only as an obligation of the SLA and do not apply to the Property. Refer to Site No. 17 on pages 63 to 66 of the LRPMP at this link:
https://www.dinuba.org/images/2017/Dinuba-LRPMP.pdf
The Successor Agency intends that any disposition of the Property will be in bulk (i.e., no less than the whole Property), in an as-is, where-is condition at a market rate, without offset, discount or purchase money financing from the Successor Agency or the City.
A Notice Recipient desiring to lease or purchase the Property for any of the purposes authorized by GC § 54222, must file a written notice of Interest (“NOI”) with the Successor Agency (via certified mail or email; email preferred) within 60 days from the date this NOA was promulgated via email, as indicated by the date set forth below. However, the SLA and this NOA do not obligate the Successor Agency to sell or lease the Property. If one or more NOI are received during the aforementioned 60-day period, the Successor Agency will review and consider such NOIs and seek additional and follow-up information, as may be needed and appropriate, to enable the Successor Agency to confirm the viability of an offer, consistent with GC § 54223, which could be over a period of at least ninety (90) days (or more, as may be needed). Further, any and all costs incurred by a Notice Recipient or any other entity or person responding to this NOA and any follow-up requested by the Successor Agency shall be the sole responsibility of the Notice Recipient or any other entity or person responding to the NOA. Without limitation, the Successor Agency shall not be responsible for any third-party expenses in connection with responding to the NOA.
California Housing and Community Development Department Disclosure:
Although the information provided below is clearly stated in GC § 54227, HCD requests that the following information also be included within an NOA:
“As required by GC § 54227, if the Successor Agency receives more than one NOI during the 60-day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.” Notice Recipients are encouraged to carefully review the requirements set forth in the Surplus Land Act (GC §§ 54220-54234), the LRPMP, the Dinuba General Plan, Zoning Ordinance and inspect the Property prior to submitting a NOI. -7-
Resolution 2024-5
Please send written NOIs via certified mail or email (email is preferred, but not required) to:
City of Dinuba
Attn: Daniel James, Assistant City Manager
405 E. El Monte Way
Dinuba, California 93618
[email protected].
With copies to:
Steven H. Dukett, Development Consultant to the City
2305 Chicago Avenue
Riverside, California 92507
[email protected]
For further information, please contact Mr. Steven H. Dukett, Managing Director of Development Services, TKE Engineering, Inc. (development consultant to City), at (909) 967-8205 or [email protected].
The final day to submit a written NOI to either lease or purchase the Property is _________day, _____ __, 2024 by 5:00 PM.
Attachments (Arial Image and Assessor Maps)
City Council Staff Report
Department: FINANCE SERVICES May 28, 2024
To: Mayor and City Council
From: Karina Solis, Administrative Services Director
By: Maria Alaniz, City Clerk/Human Resources Director
Subject: Warrant Register May 17 & 24, 2024 (KS)
RECOMMENDATION
Council to review and approve the Warrant Register as presented.
EXECUTIVE SUMMARY
None.
OUTSTANDING ISSUES
None.
DISCUSSION
None.
FISCAL IMPACT
None.
PUBLIC HEARING
None required.
ATTACHMENTS:
Description
WR 05.17.2024
WR 05.24.2024
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 385 - 4 Creeks, Inc.
22489-30617 4 Creeks - Dinuba High School
Construction Oversight
Paid by Check #47043 12/19/2023 05/17/2024 05/17/2024 05/17/2024 2,176.25 22351-30944 4 Creeks- CIP Projects Paid by Check #47043 01/23/2024 05/17/2024 05/17/2024 05/17/2024 665.00 23554-30941 4 Creeks- 2023-22 El Monte Way
Crawford
Paid by Check #47043 01/23/2024 05/17/2024 05/17/2024 05/17/2024 191.25 30940A 4 Creeks- Well 21 Paid by Check #47043 01/23/2024 05/17/2024 05/17/2024 05/17/2024 23,149.25 4C001376 4 Creeks- Kamm & Alta
Roundabout County
Paid by Check #47043 02/29/2024 05/17/2024 05/17/2024 05/17/2024 612.50 4C001386 4 Creeks- El Monte Way/Rd 56
Roundabout
Paid by Check #47043 02/29/2024 05/17/2024 05/17/2024 05/17/2024 12,103.46 4C001392 4 Creeks - CMAQ & CRP Grant
Application
Paid by Check #47043 02/29/2024 05/17/2024 05/17/2024 05/17/2024 2,422.50 4C001394 4 Creeks- Empire Estates
Subdivision
Paid by Check #47043 02/29/2024 05/17/2024 05/17/2024 05/17/2024 157.50 4C001395 4 Creeks - LLA 2023- 22 El Monte
Way Crawford
Paid by Check #47043 02/29/2024 05/17/2024 05/17/2024 05/17/2024 807.50 4C001631 4 Creeks- GIS Services Paid by Check #47043 03/18/2024 05/17/2024 05/17/2024 05/17/2024 2,050.00 4C001649 4 Creeks- WWTP/ Clarifier Project Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 612.00 4C001655 4 Creeks- Street Reconstruction Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 962.50 4C001658 4 Creeks - Building Official Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 3,315.00 4C001659 4 Creeks- Encroachment Permits Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 2,819.50 4C001662 4 Creeks- Kamm/Alta Gas Station Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 962.50 4C001665 4 Creeks- Bonadelle Subdivision Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 1,225.00 4C001671 4 Creeks- LLA 2023-22 El Monte
Way Crawford
Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 175.00 4C002010 4 Creeks - El Monte Way/Rd 56
Roundabout
Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 2,623.44 4C002032 4 Creeks- LLA 2023-17 Monte/
Randal Ave
Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 175.00 4C002047 4 Creeks- CIP Projects Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 2,517.50 4C002090 4 Creeks- Kamm & Alta
Roundabout County
Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 30,195.00 4C002095 4 Creeks- Well 21 Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 11,245.00 4C002108 4 Creeks- Dinuba Subdivision Paid by Check #47043 03/19/2024 05/17/2024 05/17/2024 05/17/2024 16,650.00 4C002035 4 Creeks- Fire Department
Training Facility
Paid by Check #47043 03/28/2024 05/17/2024 05/17/2024 05/17/2024 2,642.50 4C002030 4 Creeks- CMAQ and Crp Grant
Application
Paid by Check #47043 03/29/2024 05/17/2024 05/17/2024 05/17/2024 2,532.50 4C002072 4 Creeks- Dinuba Sewer Projects Paid by Check #47043 03/29/2024 05/17/2024 05/17/2024 05/17/2024 5,952.50 4C002048 4 Creeks- Commercial
Development
Paid by Check #47043 03/30/2024 05/17/2024 05/17/2024 05/17/2024 3,617.50 4C002077 4 Creeks- Viscaya Park
Improvements
Paid by Check #47043 03/31/2024 05/17/2024 05/17/2024 05/17/2024 73,693.76 Vendor 385 - 4 Creeks, Inc. Totals Invoices 28 $206,251.41 Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 1 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 263 - Advantek Benefit Administrators
5/10/24 Funding Miscellaneous Paid by Check #47044 05/10/2024 05/17/2024 05/17/2024 05/17/2024 17,856.76 Vendor 263 - Advantek Benefit Administrators Totals Invoices 1 $17,856.76 Vendor 971 - Alert-O-Lite, Inc.
0154736-IN Alert PD55 Paid by Check #47045 05/08/2024 05/17/2024 05/17/2024 05/17/2024 706.53 Vendor 971 - Alert-O-Lite, Inc. Totals Invoices 1 $706.53 Vendor 1229 - Sergio Armando Alvarado
Alvarado 5/7 Alvarado 5/7/24 Meeting Paid by Check #47046 05/07/2024 05/17/2024 05/17/2024 05/17/2024 25.00 Vendor 1229 - Sergio Armando Alvarado Totals Invoices 1 $25.00 Vendor 2045 - Angel Armor, LLC
INV9698 PD - Vests / Garcia, Montemayor,
Pinedo & Silva
Paid by Check #47047 05/09/2024 05/17/2024 05/17/2024 05/17/2024 5,942.36 Vendor 2045 - Angel Armor, LLC Totals Invoices 1 $5,942.36 Vendor 351 - Anthem Blue Cross
000331199514 Roberts 102A78783 6/01/24-
6/30/24
Paid by Check #47048 05/04/2024 05/17/2024 05/17/2024 05/17/2024 132.70 Vendor 351 - Anthem Blue Cross Totals Invoices 1 $132.70 Vendor 17 - AT&T
559596064904/24 1088 E KAMM AVE 04/26/24-
05/25/24
Paid by Check #47049 04/26/2024 05/17/2024 05/17/2024 05/17/2024 3,449.18 250127196105/24 Telephone 05/01/24-05/31/24 Paid by Check #47054 05/01/2024 05/17/2024 05/17/2024 05/17/2024 70.84 939105474305/24 Telephone 04/02/24-05/10/24 Paid by Check #47053 05/02/2024 05/17/2024 05/17/2024 05/17/2024 65.68 939105447505/24 CS Telephone 04/10/24-05/09/24 Paid by Check #47050 05/10/2024 05/17/2024 05/17/2024 05/17/2024 28.94 939105447605/24 Telephone 04/10/24-05/9/24 Paid by Check #47052 05/10/2024 05/17/2024 05/17/2024 05/17/2024 28.94 939106901205/24 Sportsplex - Telephone 04/10/24-
05/09/24
Paid by Check #47051 05/10/2024 05/17/2024 05/17/2024 05/17/2024 76.89 Vendor 17 - AT&T Totals Invoices 6 $3,720.47
Vendor 1575 - Avison Construction, Inc.
5-20366 Avison Kamm and Alta
Roundabout
Paid by Check #47055 05/10/2024 05/17/2024 05/17/2024 05/17/2024 36,179.80 Vendor 1575 - Avison Construction, Inc. Totals Invoices 1 $36,179.80 Vendor 376 - BCS Consulting, LLC
2024108 Monthly IT Service - April 2024
and subscription
Paid by Check #47056 05/14/2024 05/17/2024 05/17/2024 05/17/2024 8,177.73 Vendor 376 - BCS Consulting, LLC Totals Invoices 1 $8,177.73 Vendor 1393 - Estevan Benavides
Benavides 5/7 Benavides 5/7 Meeting Paid by Check #47057 05/07/2024 05/17/2024 05/17/2024 05/17/2024 25.00 Vendor 1393 - Estevan Benavides Totals Invoices 1 $25.00 Vendor 80 - California Business Machines
349892 PD - Copiers Lease Paid by Check #47058 05/09/2024 05/17/2024 05/17/2024 05/17/2024 435.14 Vendor 80 - California Business Machines Totals Invoices 1 $435.14 Vendor 118 - California Parks & Recreation Society
Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 2 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount CPRS-SLW2024 FY23/24-Youth Services-CPRS
Summer Leader Workshop 2024
Paid by Check #47059 05/13/2024 05/17/2024 05/17/2024 05/13/2024 05/17/2024 225.00 Vendor 118 - California Parks & Recreation Society Totals Invoices 1 $225.00 Vendor 84 - California Police Chief's Association
7066 PD - 2024-25 CPCAA Association
Member Dues
Paid by Check #47060 07/01/2024 05/17/2024 05/17/2024 05/17/2024 155.00 Vendor 84 - California Police Chief's Association Totals Invoices 1 $155.00 Vendor 94 - California Public Employees Retirement
2024-00000439 31 - 457 - Employee CalPERS $* Paid by EFT #2939 05/09/2024 05/13/2024 05/13/2024 05/13/2024 10,022.63 4/21-5/4/24 04/21/24-05/04/24 Paid by EFT #2940 05/09/2024 05/13/2024 05/13/2024 05/13/2024 94,968.24 Vendor 94 - California Public Employees Retirement Totals Invoices 2 $104,990.87 Vendor 305 - Cartozian Air Conditioning and Heating Inc. 19775 FY23/24-A/C unit preventative
maintenance-May 2024 Service
Paid by Check #47061 05/08/2024 05/17/2024 05/17/2024 05/13/2024 05/17/2024 875.00 19778 FY23/24-Sportsplex-AC unit
service -May 2024 maintenance
Paid by Check #47061 05/08/2024 05/17/2024 05/17/2024 05/13/2024 05/17/2024 150.00 Vendor 305 - Cartozian Air Conditioning and Heating Inc. Totals Invoices 2 $1,025.00 Vendor 381 - Cen Cal Distributing Inc.
328125 04/01/2024 Delivery Charge Paid by Check #47062 04/30/2024 05/17/2024 05/17/2024 05/17/2024 4.95 328126 04/11/2024 water deliver 8
bottles
Paid by Check #47062 04/30/2024 05/17/2024 05/17/2024 05/17/2024 84.00 Vendor 381 - Cen Cal Distributing Inc. Totals Invoices 2 $88.95 Vendor 1201 - Alberto Cendejas II
Cendejas 5/7 Cendejas 5/7/24 Meeting Paid by Check #47063 05/07/2024 05/17/2024 05/17/2024 05/17/2024 25.00 Vendor 1201 - Alberto Cendejas II Totals Invoices 1 $25.00 Vendor 44 - Central Valley Lock & Safe, Inc
63689 central valley WWRF keys for
pump truck & forklift
Paid by Check #47064 05/10/2024 05/17/2024 05/17/2024 05/17/2024 50.24 Vendor 44 - Central Valley Lock & Safe, Inc Totals Invoices 1 $50.24 Vendor 240 - Clean Cut Landscape Management Inc.
4783 Monthly Landscaping Service April
2024
Paid by Check #47065 04/30/2024 05/17/2024 05/17/2024 05/17/2024 21,583.00 Vendor 240 - Clean Cut Landscape Management Inc. Totals Invoices 1 $21,583.00 Vendor 1238 - Coleman & Horowitt, LLP
520801 Eagle Fire and Water Restoration,
Inc. April 2024
Paid by Check #47066 04/30/2024 05/17/2024 05/17/2024 05/17/2024 72.00 520802 DUSD Fee dispute April 2024 Paid by Check #47066 04/30/2024 05/17/2024 05/17/2024 05/17/2024 380.00 Vendor 1238 - Coleman & Horowitt, LLP Totals Invoices 2 $452.00 Vendor 170 - Comcast
0135597 04/02/24 405 E El Monte Way 04/04/24-
05/03/24
Paid by Check #47068 04/02/2024 05/17/2024 05/17/2024 05/17/2024 69.53 0136611 04/26/24 PD 05/01/2024 - 05/31/2024
Charges
Paid by Check #47069 04/26/2024 05/17/2024 05/17/2024 05/17/2024 56.26 Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 3 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 0135597 05/02/24 405 E El Monte Way 05/04/24-
06/03/24
Paid by Check #47067 05/02/2024 05/17/2024 05/17/2024 05/17/2024 74.28 0160181 05/07/24 1088 E KAMM AVE 05/11/24-
06/10/24
Paid by Check #47070 05/07/2024 05/17/2024 05/17/2024 05/17/2024 48.46 Vendor 170 - Comcast Totals Invoices 4 $248.53
Vendor 910 - Timothy S. Conklin
Conklin 5/7 Conklin 5/7/24 Meeting Paid by Check #47071 05/07/2024 05/17/2024 05/17/2024 05/17/2024 25.00 Vendor 910 - Timothy S. Conklin Totals Invoices 1 $25.00 Vendor 232 - Courier Printing and Village Printer
C26740 FRONT DESK WINDOW
ENVELOPE
Paid by Check #47072 05/13/2024 05/17/2024 05/17/2024 05/17/2024 868.00 Vendor 232 - Courier Printing and Village Printer Totals Invoices 1 $868.00 Vendor 3 - Culligan Water
203083 culligan exchange tank Paid by Check #47073 04/30/2024 05/17/2024 05/17/2024 05/17/2024 81.00 203418 culligan exchange tank Paid by Check #47073 04/30/2024 05/17/2024 05/17/2024 05/17/2024 78.00 Vendor 3 - Culligan Water Totals Invoices 2 $159.00
Vendor 1582 - Dell Financial Services LLC
3315997 SERVER 06/01/24-06/30/24 Paid by Check #47074 05/02/2024 05/17/2024 05/17/2024 05/17/2024 2,947.71 Vendor 1582 - Dell Financial Services LLC Totals Invoices 1 $2,947.71 Vendor 77 - Department of Justice
737067 PD - Blood Alcohol Analysis / April
2024
Paid by Check #47075 05/07/2024 05/17/2024 05/17/2024 05/17/2024 105.00 Vendor 77 - Department of Justice Totals Invoices 1 $105.00 Vendor 1506 - Enterprise FM Trust
FBN4957959R Enterprise maintenance charge Paid by Check #47076 02/04/2024 05/17/2024 05/17/2024 05/17/2024 1,538.68 FBN5033295 ENTERPRISE PW FLEET MAY Paid by Check #47076 05/03/2024 05/17/2024 05/17/2024 05/17/2024 5,693.93 FBN5033295FINCHR enterprise fin charge Paid by Check #47076 05/03/2024 05/17/2024 05/17/2024 05/17/2024 14.07 Vendor 1506 - Enterprise FM Trust Totals Invoices 3 $7,246.68 Vendor 1591 - Environment Control
23759-299 environment janitorial
maintenance May
Paid by Check #47077 05/01/2024 05/17/2024 05/17/2024 05/17/2024 9,859.69 Vendor 1591 - Environment Control Totals Invoices 1 $9,859.69 Vendor 36 - Ewing Irrigation Products
22243171 FY23/24-Parks-Irrigation
parts/supplies
Paid by Check #47078 05/09/2024 05/17/2024 05/17/2024 05/09/2024 05/17/2024 278.37 Vendor 36 - Ewing Irrigation Products Totals Invoices 1 $278.37 Vendor 2064 - Ferguson Enterprises, LLC
5021184-1 ferguson viscaya park Paid by Check #47079 05/03/2024 05/17/2024 05/17/2024 05/17/2024 10,996.69 Vendor 2064 - Ferguson Enterprises, LLC Totals Invoices 1 $10,996.69 Vendor 1244 - Fire Apparatus Solutions
29573 Fire apparatus T-32 Paid by Check #47080 04/25/2024 05/17/2024 05/17/2024 05/17/2024 620.76 Vendor 1244 - Fire Apparatus Solutions Totals Invoices 1 $620.76 Vendor 1801 - Garda CL West, INC
Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 4 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 20603887 SERVICE MONTH APRIL 2024 Paid by Check #47081 04/30/2024 05/17/2024 05/17/2024 05/17/2024 13.72 10779929 SERVICE MONTH MAY 2024 Paid by Check #47081 05/01/2024 05/17/2024 05/17/2024 05/17/2024 1,359.84 Vendor 1801 - Garda CL West, INC Totals Invoices 2 $1,373.56 Vendor 18 - The Gas Company
0486158404505/24 Sportsplex - 201 N URUAPAN
WAY 04/02/24-05/01/24
Paid by Check #47083 05/03/2024 05/17/2024 05/17/2024 05/17/2024 14.80 1263155600305/24 DSC 437 N Eaton 04/02/24-
05/01/24
Paid by Check #47084 05/03/2024 05/17/2024 05/17/2024 05/17/2024 39.96 1620156700105/24 CS 1390 E ELIZABETH
WAY04/02/24-05/01/24
Paid by Check #47085 05/03/2024 05/17/2024 05/17/2024 05/17/2024 129.54 1641156700705/24 110 S COLLEGE AVE 04/02/24-
05/01/24
Paid by Check #47082 05/03/2024 05/17/2024 05/17/2024 05/17/2024 34.27 1830985449 05/24 PD - 04/02/2024 - 05/01/2024
Billing Charges
Paid by Check #47087 05/03/2024 05/17/2024 05/17/2024 05/17/2024 29.67 1285520359705/24 1088 E KAMM AVE 04/03/24-
05/02/24
Paid by Check #47086 05/06/2024 05/17/2024 05/17/2024 05/17/2024 85.93 Vendor 18 - The Gas Company Totals Invoices 6 $334.17
Vendor 2073 - GC Roofing
GCroofing2024 Refund Building Permit Fee'sMercantile incentive programPaid by Check #47088 04/30/2024 05/17/2024 05/17/2024 05/17/2024 975.35 Vendor 2073 - GC Roofing Totals Invoices 1 $975.35
Vendor 605 - Frank Guerra
May 2024 Anthem Reimb 5/01/2024-
5/31/2024
Paid by Check #47089 05/06/2024 05/17/2024 05/17/2024 05/17/2024 305.52 Vendor 605 - Frank Guerra Totals Invoices 1 $305.52
Vendor 174 - Howard's Pest Control
122429 howards old public works building Paid by Check #47090 05/03/2024 05/17/2024 05/17/2024 05/17/2024 67.00 Vendor 174 - Howard's Pest Control Totals Invoices 1 $67.00 Vendor 1718 - JCL Company, LLC
05072413741 JCL safety goggles, right tool Paid by Check #47091 05/07/2024 05/17/2024 05/17/2024 05/17/2024 (213.75) 05072413743 jcl Carbide Paid by Check #47091 05/07/2024 05/17/2024 05/17/2024 05/17/2024 234.90 Vendor 1718 - JCL Company, LLC Totals Invoices 2 $21.15 Vendor 318 - Kingsburg Veterinary Clinic
661676 PD - Vet Fees Paid by Check #47092 06/28/2023 05/17/2024 05/17/2024 05/17/2024 203.00 666380 PD - Vet Fees Paid by Check #47092 08/31/2023 05/17/2024 05/17/2024 05/17/2024 166.50 Vendor 318 - Kingsburg Veterinary Clinic Totals Invoices 2 $369.50 Vendor 1247 - Linda Launer
ICSC 2024 Reimb hotel fee for stay on 5/18-
5/22/24
Paid by Check #47093 05/14/2024 05/17/2024 05/17/2024 05/17/2024 1,886.76 Vendor 1247 - Linda Launer Totals Invoices 1 $1,886.76
Vendor 449 - Les Schwab Tire Centers of Central California 55100338313 les schwab PD-35 Paid by Check #47094 05/09/2024 05/17/2024 05/17/2024 05/17/2024 591.52 Vendor 449 - Les Schwab Tire Centers of Central California Totals Invoices 1 $591.52 Vendor 801 - LexisNexis Mathew Bender
Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 5 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 41133137 CA DEER 04/24 GOV 3RVS (GOV
2A, 2B, 3)
Paid by Check #47095 04/25/2024 05/17/2024 05/17/2024 05/17/2024 1,163.52 Vendor 801 - LexisNexis Mathew Bender Totals Invoices 1 $1,163.52 Vendor 1913 - Metro Uniform & Accessories
276103 PD - Body Armor / Gilberto
Quezada
Paid by Check #47096 02/13/2024 05/17/2024 05/17/2024 05/17/2024 1,003.27 276105 PD - Body Armor / Austyn
Rodriguez
Paid by Check #47096 02/13/2024 05/17/2024 05/17/2024 05/17/2024 1,003.27 279579 PD - Supplies Paid by Check #47096 05/01/2024 05/17/2024 05/17/2024 05/17/2024 170.00 Vendor 1913 - Metro Uniform & Accessories Totals Invoices 3 $2,176.54 Vendor 22 - Moore Twining Associates Inc.
4137093 moore industrial Paid by Check #47097 03/01/2024 05/17/2024 05/17/2024 05/17/2024 88.00 4137147 moore industrial Paid by Check #47097 03/04/2024 05/17/2024 05/17/2024 05/17/2024 163.00 4137281 moore industrial Paid by Check #47097 03/06/2024 05/17/2024 05/17/2024 05/17/2024 88.00 4137810 moore City Wells Paid by Check #47097 03/19/2024 05/17/2024 05/17/2024 05/17/2024 120.00 4137895 moore industrial Paid by Check #47097 03/21/2024 05/17/2024 05/17/2024 05/17/2024 88.00 4137929 moore in-house Paid by Check #47097 03/21/2024 05/17/2024 05/17/2024 05/17/2024 257.00 4138629 moore in-house Paid by Check #47097 04/10/2024 05/17/2024 05/17/2024 05/17/2024 102.00 4139064 moore in-house Paid by Check #47097 04/19/2024 05/17/2024 05/17/2024 05/17/2024 257.00 4139800 moore industrial Paid by Check #47097 05/07/2024 05/17/2024 05/17/2024 05/17/2024 88.00 Vendor 22 - Moore Twining Associates Inc. Totals Invoices 9 $1,251.00 Vendor 59 - Motorola Credit Corporation
1187121897 PD - (5) APX 4000 All Band
Portable Radios
No Need 05/07/2024 05/17/2024 05/17/2024 17,691.57
Vendor 59 - Motorola Credit Corporation Totals Invoices 1 $17,691.57 Vendor 1593 - Nelson's Power Center
282039 Nelsons power WWRF Paid by Check #47098 05/08/2024 05/17/2024 05/17/2024 05/17/2024 129.92 Vendor 1593 - Nelson's Power Center Totals Invoices 1 $129.92 Vendor 142 - Office Depot BSD
363543268001 FY23/24-Comm Srvcs.-Office
supplies
Paid by Check #47099 04/17/2024 05/17/2024 05/17/2024 05/03/2024 05/17/2024 41.65 360175926001 PD - Supplies Paid by Check #47099 04/23/2024 05/17/2024 05/17/2024 05/17/2024 15.24 360204945001 PD - Supplies Paid by Check #47099 04/23/2024 05/17/2024 05/17/2024 05/17/2024 228.46 364670773001 Office Supplies - Office Depot Paid by Check #47099 04/26/2024 05/17/2024 05/17/2024 05/17/2024 11.92 364670898001 Office Supplies - Office Depot Paid by Check #47099 04/26/2024 05/17/2024 05/17/2024 05/17/2024 81.07 365341782001 Admin office supplies Paid by Check #47099 05/01/2024 05/17/2024 05/17/2024 05/17/2024 55.75 365342059001 Admin office supplies Paid by Check #47099 05/02/2024 05/17/2024 05/17/2024 05/17/2024 7.96 Vendor 142 - Office Depot BSD Totals Invoices 7 $442.05 Vendor 1773 - Pace Supply Corp.
199349196 pace supplies Paid by Check #47100 03/22/2024 05/17/2024 05/17/2024 05/17/2024 376.34 Vendor 1773 - Pace Supply Corp. Totals Invoices 1 $376.34 Vendor 76 - Pacific Gas & Electric
Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 6 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 0418167531704/24 RD 72 & W SIERRA WAY 03/27-
24-04/25/24
Paid by Check #47101 04/26/2024 05/17/2024 05/17/2024 05/17/2024 610.61 0584832101304/24 NE CRAWFORD & GERALD
03/27/24-04/25/24
Paid by Check #47103 04/26/2024 05/17/2024 05/17/2024 05/17/2024 128.27 4979039280404/24 DSC 03/27/24-04/25/24 Paid by Check #47119 04/26/2024 05/17/2024 05/17/2024 05/17/2024 1,183.08 8376497226704/24 S/E COR NEWTON & DAVIS
03/27/24-04/25/24
Paid by Check #47114 04/26/2024 05/17/2024 05/17/2024 05/17/2024 248.78 8968787345804/24 651 W SAGINAW AVE 03/27/24-
04/25/24
Paid by Check #47117 04/26/2024 05/17/2024 05/17/2024 05/17/2024 220.49 4772157652904/24 ALTA & EL MONTE WAY 03/28/24
-04/26/24
Paid by Check #47108 04/28/2024 05/17/2024 05/17/2024 05/17/2024 216.84 5355488862704/24 912 N ALTA @ SAGINAW & ALTA
03/28/24-04/26/24
Paid by Check #47110 04/28/2024 05/17/2024 05/17/2024 05/17/2024 88.98 5657667089904/24 NW COR ALICE & W EL MONTE
WAY 03/28/24-04/26/24
Paid by Check #47111 04/28/2024 05/17/2024 05/17/2024 05/17/2024 120.18 6657667025204/24 NW COR ALTA & RD 80 03/28/24-
04/26/24
Paid by Check #47112 04/28/2024 05/17/2024 05/17/2024 05/17/2024 88.22 8647150103004/24 ON E EL MONTE WAY & PERRY
03/28/24-04/26/24
Paid by Check #47115 04/28/2024 05/17/2024 05/17/2024 05/17/2024 87.08 1686600158504/24 2255 W EL MONTE WAY 03/29/24
-04/29/24
Paid by Check #47105 04/30/2024 05/17/2024 05/17/2024 05/17/2024 95.35 2125236871304/24 1215 W EL MONTE WAY 03/29/24
-04/29/24
Paid by Check #47106 04/30/2024 05/17/2024 05/17/2024 05/17/2024 190.27 3354641796604/24 KAMM & O ST 03/29/24-04/29/24 Paid by Check #47107 04/30/2024 05/17/2024 05/17/2024 05/17/2024 107.83 5064695483904/24 CRAWFORD & EL MONTE SW
03/29/24-04/29/24
Paid by Check #47109 04/30/2024 05/17/2024 05/17/2024 05/17/2024 152.84 8981923387804/24 150 W SAGINAW AVE 03/29/24-
04/29/24
Paid by Check #47116 04/30/2024 05/17/2024 05/17/2024 05/17/2024 82.02 9237058126304/24 2813 W EL MONTE WAY 03/29/24
-04/29/24
Paid by Check #47118 04/30/2024 05/17/2024 05/17/2024 05/17/2024 134.04 0571296382505/24 PW 03/30/24-04/30/24 Paid by Check #47102 05/01/2024 05/17/2024 05/17/2024 05/17/2024 162.96 1416294094505/24 389 W EL MONTE WAY 03/30/24-
04/30/24
Paid by Check #47104 05/01/2024 05/17/2024 05/17/2024 05/17/2024 93.86 5751498437605/24 Parks 139 N K ST 03/29/24-
04/29/24
Paid by Check #47120 05/01/2024 05/17/2024 05/17/2024 05/17/2024 42.40 7149346409405/24 EUCLID S/LINDARA WELL #18
03/29/24-04/29/24
Paid by Check #47113 05/01/2024 05/17/2024 05/17/2024 05/17/2024 1,610.58 6870376077 05/24 PD - 04/09/2024 - 05/07/2024
Billing Charges
Paid by Check #47121 05/08/2024 05/17/2024 05/17/2024 05/17/2024 9.25 9624769219505/24 225 S L ST 04/09/24-05/07/24 Paid by Check #47122 05/08/2024 05/17/2024 05/17/2024 05/17/2024 183.09 Vendor 76 - Pacific Gas & Electric Totals Invoices 22 $5,857.02 Vendor 7 - Pena's Disposal Services
809039 PENAS SPRING CLEAN UP Paid by Check #47123 04/03/2024 05/17/2024 05/17/2024 05/17/2024 14,233.75 815514 PENA'S YARD WATSE, ASPHALT,
SOLID MIXED WASTE
Paid by Check #47123 05/01/2024 05/17/2024 05/17/2024 05/17/2024 584.52 Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 7 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 5/24 FOR 4/24 May payment for April 2024
Monthly Disposal Charges
Paid by Check #47123 05/14/2024 05/17/2024 05/17/2024 05/17/2024 153,415.37 JUNE 2024 June 2024 Contract Disposal
Payment
Paid by Check #47123 06/01/2024 05/17/2024 05/17/2024 05/17/2024 60,000.00 Vendor 7 - Pena's Disposal Services Totals Invoices 4 $228,233.64 Vendor 275 - Proforce Marketing Inc.
548726 PD - Range/Armory Supplies Paid by Check #47124 05/09/2024 05/17/2024 05/17/2024 05/17/2024 2,133.22 Vendor 275 - Proforce Marketing Inc. Totals Invoices 1 $2,133.22 Vendor 1944 - Quadient, Inc
60958166 POSTAGE METER RENTAL Paid by Check #47125 04/02/2024 05/17/2024 05/17/2024 05/17/2024 630.60 Vendor 1944 - Quadient, Inc Totals Invoices 1 $630.60
Vendor 1099 - Ramirez Mobile Car Wash Inc.
047 PD - Unit #47 Restoration/Repairs
Services
Paid by Check #47126 05/13/2024 05/17/2024 05/17/2024 05/17/2024 595.00 Vendor 1099 - Ramirez Mobile Car Wash Inc. Totals Invoices 1 $595.00 Vendor 38 - Reedley Irrigation System
RIS-POS02-56181 FY23/24-Parks-KC Park-main line
repairs
Paid by Check #47127 05/06/2024 05/17/2024 05/17/2024 05/13/2024 05/17/2024 522.27 Vendor 38 - Reedley Irrigation System Totals Invoices 1 $522.27 Vendor 124 - Reedley Veterinary Hospital
151 PD - Vet Service Fees & April
Disposal Fees
Paid by Check #47128 04/30/2024 05/17/2024 05/17/2024 05/17/2024 1,655.00 Vendor 124 - Reedley Veterinary Hospital Totals Invoices 1 $1,655.00 Vendor 349 - RES COM Pest Control
2215166 PD - Dog Kennels Pest Control Paid by Check #47129 04/25/2024 05/17/2024 05/17/2024 05/17/2024 48.00 Vendor 349 - RES COM Pest Control Totals Invoices 1 $48.00 Vendor 817 - Maribel Reynosa
ICSC 2024 Reimb hotel fee for stay on 5/18-
5/22/24
Paid by Check #47130 05/14/2024 05/17/2024 05/17/2024 05/17/2024 1,360.19 Vendor 817 - Maribel Reynosa Totals Invoices 1 $1,360.19 Vendor 350 - Ridge Creek DInuba Golf Club
05/13/24 Reimb Deductible reimbursement receipt
#2024-00073955
Paid by Check #47131 05/13/2024 05/17/2024 05/17/2024 05/17/2024 1,001.61 Vendor 350 - Ridge Creek DInuba Golf Club Totals Invoices 1 $1,001.61 Vendor 1526 - Robert Soria Trucking
15442 robert soria base rock Paid by Check #47132 05/06/2024 05/17/2024 05/17/2024 05/17/2024 1,376.00 Vendor 1526 - Robert Soria Trucking Totals Invoices 1 $1,376.00 Vendor 1677 - Rodeo Wild West
179645 FY23/24-Parks-Uniform
allowance-J. Ramirez-2nd boot
replacement
Paid by Check #47133 05/14/2024 05/17/2024 05/17/2024 05/14/2024 05/17/2024 129.11 Vendor 1677 - Rodeo Wild West Totals Invoices 1 $129.11 Vendor 42 - Scout Specialties
Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 8 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 175818 SCOUT SPECIALTIES LINEUP
PAVEMENT STRIPING
Paid by Check #47134 05/02/2024 05/17/2024 05/17/2024 05/17/2024 167.30 Vendor 42 - Scout Specialties Totals Invoices 1 $167.30 Vendor 1396 - Social Vocational Services, Inc.
40D2404-IN FY23/24-Parks-Restroom/grounds
maintenance-April 2024
Paid by Check #47135 04/30/2024 05/17/2024 05/17/2024 05/09/2024 05/17/2024 3,302.40 Vendor 1396 - Social Vocational Services, Inc. Totals Invoices 1 $3,302.40 Vendor 1442 - Superior Pool Products, LLC
Q2026719 Superior pool products Paid by Check #47136 05/08/2024 05/17/2024 05/17/2024 05/17/2024 774.49 Q2026797 superior pool products drum
deposit
Paid by Check #47136 05/09/2024 05/17/2024 05/17/2024 05/17/2024 (75.00) Vendor 1442 - Superior Pool Products, LLC Totals Invoices 2 $699.49 Vendor 92 - Target Specialty Products
INVP501468900 TARGET SPRAY GUN Paid by Check #47137 04/24/2024 05/17/2024 05/17/2024 05/17/2024 157.12 INVP501477619 target specialty landscape and
aqautic
Paid by Check #47137 05/01/2024 05/17/2024 05/17/2024 05/17/2024 531.22 INVP501484763 target specialty maintain frigation
Pond
Paid by Check #47137 05/08/2024 05/17/2024 05/17/2024 05/17/2024 946.16 Vendor 92 - Target Specialty Products Totals Invoices 3 $1,634.50 Vendor 2066 - Terminix Commercial
446287494 FY23/24-Comm. Srvcs.-Pest
control service-Rec-April 2024
Paid by Check #47138 04/10/2024 05/17/2024 05/17/2024 05/08/2024 05/17/2024 85.00 446028341 PD - Pest Control Service Paid by Check #47138 04/23/2024 05/17/2024 05/17/2024 05/17/2024 74.00 10250721 2025 FY23/24-CS-Termite yrly.
treatment-7/1/24-7/31/25
Paid by Check #47138 05/02/2024 05/17/2024 05/17/2024 05/14/2024 05/17/2024 317.00 Vendor 2066 - Terminix Commercial Totals Invoices 3 $476.00 Vendor 818 - Kuldip Thusu
ICSC 2024 Reimb hotel fee for stay on 5/18-
5/22/24
Paid by Check #47139 05/14/2024 05/17/2024 05/17/2024 05/17/2024 1,437.77 Vendor 818 - Kuldip Thusu Totals Invoices 1 $1,437.77
Vendor 426 - Tioga Solar Dinuba LLC
1060364149 Tioga solar production 4/1/2024
to 4/30/2024
Paid by Check #47140 04/30/2024 05/17/2024 05/17/2024 05/17/2024 44,432.77 Vendor 426 - Tioga Solar Dinuba LLC Totals Invoices 1 $44,432.77 Vendor 1778 - TKE Engineering
2024-5032 175-01 Dinuba Successor AgencyGeneral Services 03/1/24- 03/31/24
Paid by Check #47141 04/23/2024 05/17/2024 05/17/2024 05/17/2024 3,700.00 Vendor 1778 - TKE Engineering Totals Invoices 1 $3,700.00 Vendor 717 - TMI Research Services
CITYOD 24-4-30 Service Month April 2024 Paid by Check #47142 04/30/2024 05/17/2024 05/17/2024 05/17/2024 240.00 Vendor 717 - TMI Research Services Totals Invoices 1 $240.00 Vendor 561 - America Trevino
Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 9 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount May 2024 Anthem Reimb 5/01/2024-
5/31/2024
Paid by Check #47143 05/09/2024 05/17/2024 05/17/2024 05/17/2024 296.80 Vendor 561 - America Trevino Totals Invoices 1 $296.80
Vendor 1352 - Trizetto Provider Solutions, LLC
3U25052400 SERVICES MONTH MAY 2024 Paid by Check #47144 05/01/2024 05/17/2024 05/17/2024 05/17/2024 242.66 Vendor 1352 - Trizetto Provider Solutions, LLC Totals Invoices 1 $242.66 Vendor 49 - Tulare County
24-060 PD - New Units #22 Radio
Installation
Paid by Check #47146 05/01/2024 05/17/2024 05/17/2024 05/17/2024 860.35 IN0215302 PD - Detention Facility Paid by Check #47145 05/01/2024 05/17/2024 05/17/2024 05/17/2024 342.00 Vendor 49 - Tulare County Totals Invoices 2 $1,202.35
Vendor 192 - UNUM Life Insurance Company of America
6/01/24-6/30/24 0537123-001 Paid by Check #47147 05/10/2024 05/17/2024 05/17/2024 05/17/2024 11,540.80 Vendor 192 - UNUM Life Insurance Company of America Totals Invoices 1 $11,540.80 Vendor 273 - US Bank
527837017 US BANK DUE DATE 5/20/24 Paid by Check #47148 04/26/2024 05/17/2024 05/17/2024 05/17/2024 885.64 Vendor 273 - US Bank Totals Invoices 1 $885.64
Vendor 154 - USA Bluebook
INV00262845 usa blue book chlorinator Paid by Check #47149 01/31/2024 05/17/2024 05/17/2024 05/17/2024 1,519.12 Vendor 154 - USA Bluebook Totals Invoices 1 $1,519.12
Vendor 359 - Valero Marketing & Supply Company
96949360 FD fuel April 2024 Paid by EFT #2942 05/06/2024 05/17/2024 05/17/2024 05/17/2024 9,527.76 96950960 PD - 04/07/2024 - 05/06/2024
Fuel Charges
Paid by EFT #2941 05/06/2024 05/17/2024 05/17/2024 05/17/2024 12,704.38 Vendor 359 - Valero Marketing & Supply Company Totals Invoices 2 $22,232.14 Vendor 1434 - Vast Networks
53659 05/01/2024-05/31/2024 Internet Paid by Check #47150 05/01/2024 05/17/2024 05/17/2024 05/17/2024 4,632.29 Vendor 1434 - Vast Networks Totals Invoices 1 $4,632.29 Vendor 21 - Vestis Services LLC
5031404393 FY23/24-Parks-uniform
allowance/safety supplies
Paid by Check #47151 05/08/2024 05/17/2024 05/17/2024 05/09/2024 05/17/2024 110.16 Vendor 21 - Vestis Services LLC Totals Invoices 1 $110.16 Vendor 2062 - W & E Electric
2404103 w & e alta and kamm lift station Paid by Check #47152 04/26/2024 05/17/2024 05/17/2024 05/17/2024 150.00 2404104 W & E ROOSEVELT REC. CENTER Paid by Check #47152 04/26/2024 05/17/2024 05/17/2024 05/17/2024 150.00 2404130 W&E MCDONALDS LIFT STATION Paid by Check #47152 04/30/2024 05/17/2024 05/17/2024 05/17/2024 150.00 Vendor 2062 - W & E Electric Totals Invoices 3 $450.00
Vendor 1760 - White Cap Construction Supply
50026329470 white cap fuel ratchet kit Paid by Check #47153 04/19/2024 05/17/2024 05/17/2024 05/17/2024 361.87 Vendor 1760 - White Cap Construction Supply Totals Invoices 1 $361.87 Vendor 1313 - Yepez Plumbing
08937 yepez unclogged toilet only Paid by Check #47154 05/06/2024 05/17/2024 05/17/2024 05/17/2024 250.00 Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 10 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 1313 - Yepez Plumbing Totals Invoices 1 $250.00
Vendor Eva Hurtado
TNR2024-5 Trap & Release Program Voucher
- Reimbursement
Paid by Check #47155 05/13/2024 05/17/2024 05/17/2024 05/17/2024 50.00 Vendor Eva Hurtado Totals Invoices 1 $50.00
Vendor Cindy Munoz
TNR2024-6 Trap & Release Program Voucher
- Reimbursement
Paid by Check #47156 05/13/2024 05/17/2024 05/17/2024 05/17/2024 50.00 Vendor Cindy Munoz Totals Invoices 1 $50.00
Grand Totals Invoices 181 $814,014.58
Run by Rosemary Silva on 05/16/2024 04:06:08 PM Page 11 of 11 Accounts Payable Invoice Report
Payment Date Range 05/11/24 - 05/17/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 1143 - AAA Quality Services, Inc.
00120365 FY23/24-Parks-Portable Restroom
(1) loss waiver fee- Centennial
Paid by Check #47157 05/06/2024 05/24/2024 05/24/2024 05/20/2024 05/24/2024 10.00 00120366 FY23/24-Parks-Portable Restroom
(2) loss waiver fees-Nebraska
Paid by Check #47157 05/06/2024 05/24/2024 05/24/2024 05/20/2024 05/24/2024 20.00 Vendor 1143 - AAA Quality Services, Inc. Totals Invoices 2 $30.00 Vendor 263 - Advantek Benefit Administrators
5/17/24 Funding Miscellaneous Paid by Check #47158 05/22/2024 05/24/2024 05/24/2024 05/24/2024 71,891.92 Vendor 263 - Advantek Benefit Administrators Totals Invoices 1 $71,891.92 Vendor 1599 - Adventist Health Toxicology
2193 PD - Toxicology Service / April
2024
Paid by Check #47159 05/02/2024 05/24/2024 05/24/2024 05/24/2024 1,081.00 Vendor 1599 - Adventist Health Toxicology Totals Invoices 1 $1,081.00 Vendor 1036 - Allstar Fire Equipment
255947 Supplies Paid by Check #47160 05/15/2024 05/24/2024 05/24/2024 05/24/2024 199.24 Vendor 1036 - Allstar Fire Equipment Totals Invoices 1 $199.24 Vendor 119 - American Backflow Specialties
INV65198 American backflow Paid by Check #47161 05/08/2024 05/24/2024 05/24/2024 05/24/2024 2,881.68 INV65271 American backflow Paid by Check #47161 05/16/2024 05/24/2024 05/24/2024 05/24/2024 1,157.99 Vendor 119 - American Backflow Specialties Totals Invoices 2 $4,039.67 Vendor 20 - Ameritas Life Insurance
3/01-3/31/24 010-007745-00000 Paid by Check #47162 02/15/2024 05/24/2024 05/24/2024 05/24/2024 37,654.84 Vendor 20 - Ameritas Life Insurance Totals Invoices 1 $37,654.84 Vendor 351 - Anthem Blue Cross
000331175026 Harman 532W04713 06/01/24-
06/30/24
Paid by Check #47163 05/04/2024 05/24/2024 05/24/2024 05/24/2024 132.70 000331190536 Tyler 299A24237 06/01/24-
06/30/24
Paid by Check #47166 05/04/2024 05/24/2024 05/24/2024 05/24/2024 100.60 000331195328 Medders 975A79192 06/01/24-
06/30/24
Paid by Check #47167 05/04/2024 05/24/2024 05/24/2024 05/24/2024 132.70 000331199871 Magyar 792A24403 06/01/4-
06/30/24
Paid by Check #47165 05/04/2024 05/24/2024 05/24/2024 05/24/2024 100.60 000332962883 Medders 936A79191 06/01/24-
08/31/24
Paid by Check #47171 05/07/2024 05/24/2024 05/24/2024 05/24/2024 973.50 000332970332 Tyler 141A75193 06/01/24-
06/30/24
Paid by Check #47169 05/07/2024 05/24/2024 05/24/2024 05/24/2024 282.18 000332983245 Magyar 730A75583 06/01/24-
08/31/24
Paid by Check #47168 05/07/2024 05/24/2024 05/24/2024 05/24/2024 1,092.66 000333007640 Sano 097M84206 06/01/24-
08/31/24
Paid by Check #47164 05/07/2024 05/24/2024 05/24/2024 05/24/2024 1,048.98 000333038323 Hartley 925M97595 06/01/24-
06/30/24
Paid by Check #47170 05/07/2024 05/24/2024 05/24/2024 05/24/2024 294.50 Vendor 351 - Anthem Blue Cross Totals Invoices 9 $4,158.42 Vendor 17 - AT&T
Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 1 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 238451821405/24 405 E El Monte Way 05/07/24-
06/06/24
Paid by Check #47179 05/07/2024 05/24/2024 05/24/2024 05/24/2024 64.10 939103727705/24 PW Telephone 04/10/24-05/09/24 Paid by Check #47172 05/10/2024 05/24/2024 05/24/2024 05/24/2024 32.05 939105447205/24 PW Telephone 04/10/24-05/09/24 Paid by Check #47173 05/10/2024 05/24/2024 05/24/2024 05/24/2024 56.33 939105447405/24 PW Telephone 04/10/24-05/09/24 Paid by Check #47174 05/10/2024 05/24/2024 05/24/2024 05/24/2024 56.45 939105447705/24 PW Telephone 04/10/24-05/09/24 Paid by Check #47175 05/10/2024 05/24/2024 05/24/2024 05/24/2024 28.94 939105447805/24 PW Telephone 04/10/24-05/09/24 Paid by Check #47176 05/10/2024 05/24/2024 05/24/2024 05/24/2024 28.94 939105446105/24 Telephone 04/11/2024-05/10/24 Paid by Check #47180 05/11/2024 05/24/2024 05/24/2024 05/24/2024 28.93 939105446205/24 DSC 04/11/24-05/10/24 Paid by Check #47177 05/11/2024 05/24/2024 05/17/2024 05/24/2024 90.90 939105446605/24 Telephone 04/11/2024-05/10/24 Paid by Check #47181 05/11/2024 05/24/2024 05/24/2024 05/24/2024 28.93 9391054467 Telephone 04/11/2024-05/10/24 Paid by Check #47182 05/11/2024 05/24/2024 05/24/2024 05/24/2024 56.31 9391054469 05/24 PD - 04/11/2024 - 05/10/2024
Billing Charges
Paid by Check #47188 05/11/2024 05/24/2024 05/24/2024 05/24/2024 27.37 9391054470 5/24 5/10/2024 Paid by Check #47184 05/11/2024 05/24/2024 05/24/2024 05/24/2024 28.93 9391054471 5/24 5/10/2024 Paid by Check #47185 05/11/2024 05/24/2024 05/24/2024 05/24/2024 28.93 9391054479 5/24 5/10/2024 Paid by Check #47186 05/11/2024 05/24/2024 05/24/2024 05/24/2024 28.93 9391054740 05/24 PD - 04/11/2024 - 05/10/2024
Billing Charges
Paid by Check #47189 05/11/2024 05/24/2024 05/24/2024 05/24/2024 292.84 9391054742 5/24 5/10/2024 Paid by Check #47187 05/11/2024 05/24/2024 05/24/2024 05/24/2024 121.50 939105474405/24 CS Telephone 04/11/24-05/10/24 Paid by Check #47178 05/11/2024 05/24/2024 05/17/2024 05/24/2024 251.14 939105475605/24 Telephone 04/11/2024-05/10/24 Paid by Check #47183 05/11/2024 05/24/2024 05/24/2024 05/24/2024 358.88 Vendor 17 - AT&T Totals Invoices 18 $1,610.40
Vendor 1575 - Avison Construction, Inc.
4-23367 Avison Roadway Segment Project Paid by Check #47190 05/13/2024 05/24/2024 05/24/2024 05/24/2024 578,912.52 Vendor 1575 - Avison Construction, Inc. Totals Invoices 1 $578,912.52 Vendor 596 - Michael Banks
10 years Service Award 2024 Paid by Check #47191 05/22/2024 05/24/2024 05/24/2024 05/24/2024 100.00 Vendor 596 - Michael Banks Totals Invoices 1 $100.00
Vendor 1869 - Bass Mekanics Car Audio
#Rec010 FY23/24-Sports-2024 baseball
player/parent jersey add-on's
Paid by Check #47192 05/01/2024 05/24/2024 05/24/2024 05/17/2024 05/24/2024 57.00 Vendor 1869 - Bass Mekanics Car Audio Totals Invoices 1 $57.00 Vendor 1103 - Bauer Compressors, Inc.
0000321103 Supplies Paid by Check #47193 05/02/2024 05/24/2024 05/24/2024 05/24/2024 303.80 Vendor 1103 - Bauer Compressors, Inc. Totals Invoices 1 $303.80 Vendor 376 - BCS Consulting, LLC
2024109 bcs consulting business media
phone
Paid by Check #47194 05/14/2024 05/24/2024 05/24/2024 05/24/2024 545.76 Vendor 376 - BCS Consulting, LLC Totals Invoices 1 $545.76 Vendor 822 - Boundtree Medical LLC
85339552 Supplies Paid by Check #47195 05/07/2024 05/24/2024 05/24/2024 05/24/2024 330.34 85345449 Supplies Paid by Check #47195 05/13/2024 05/24/2024 05/24/2024 05/24/2024 1,423.99 Vendor 822 - Boundtree Medical LLC Totals Invoices 2 $1,754.33 Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 2 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 116 - BSK Analytical Laboratories
AH11585 BSK coliform presence/absence Paid by Check #47196 05/14/2024 05/24/2024 05/24/2024 05/24/2024 152.00 AH11851 BSK coliform presence/absence Paid by Check #47196 05/17/2024 05/24/2024 05/24/2024 05/24/2024 114.00 Vendor 116 - BSK Analytical Laboratories Totals Invoices 2 $266.00 Vendor 305 - Cartozian Air Conditioning and Heating Inc. 19801 2024 Cooling Maintenance Paid by Check #47197 05/02/2024 05/24/2024 05/24/2024 05/24/2024 850.00 19773 FY23/24-Senior Center-May 2024
cooling maintenance service
Paid by Check #47197 05/07/2024 05/24/2024 05/24/2024 05/13/2024 05/24/2024 875.00 19774 FY23/24-Senior Center-A/C
warranty replacement/repair
Paid by Check #47197 05/07/2024 05/24/2024 05/24/2024 05/13/2024 05/24/2024 125.00 19833 FY23/24-CS-CPR facility May
cooling service/prev. maint. agree
Paid by Check #47197 05/14/2024 05/24/2024 05/24/2024 05/20/2024 05/24/2024 1,000.00 Vendor 305 - Cartozian Air Conditioning and Heating Inc. Totals Invoices 4 $2,850.00 Vendor 127 - City of Visalia
AR101579 PD - Animal Services Vet Fees Paid by Check #47198 04/30/2024 05/24/2024 05/24/2024 05/24/2024 131.00 Vendor 127 - City of Visalia Totals Invoices 1 $131.00
Vendor 386 - Clean Tech Environmental, Inc.
507776 CLEANTECH USED MOTOR OIL
DISPOSAL
Paid by Check #47199 02/13/2024 05/24/2024 05/24/2024 05/24/2024 142.45 546303 CLEANTECH USED ANTIFREEZE
DISPOSAL
Paid by Check #47199 03/19/2024 05/24/2024 05/24/2024 05/24/2024 7.45 546304 CLEANTECH USED MOTOR OIL
DISPOSAL
Paid by Check #47199 03/19/2024 05/24/2024 05/24/2024 05/24/2024 142.45 Vendor 386 - Clean Tech Environmental, Inc. Totals Invoices 3 $292.35 Vendor 170 - Comcast
0148160 05/11/24 1390 E ELIZABETH WAY 05/16/24
-06/15/24
Paid by Check #47200 05/11/2024 05/24/2024 05/24/2024 05/24/2024 276.74 0148178 05/12/24 680 S ALTA AVE OFC 05/17/24-
06/16/24
Paid by Check #47201 05/12/2024 05/24/2024 05/24/2024 05/24/2024 584.62 Vendor 170 - Comcast Totals Invoices 2 $861.36
Vendor 1489 - Alexander Cordell
5 years Service Award 2024 Paid by Check #47202 05/22/2024 05/24/2024 05/24/2024 05/24/2024 50.00 Vendor 1489 - Alexander Cordell Totals Invoices 1 $50.00 Vendor 232 - Courier Printing and Village Printer
C26731 Supplies Paid by Check #47203 05/13/2024 05/24/2024 05/24/2024 05/24/2024 458.96 Vendor 232 - Courier Printing and Village Printer Totals Invoices 1 $458.96 Vendor 552 - Dragnet Pest Control
1283-07 05-03 FY23/24-Senior Center-Pest
Control Services-May 2024
Paid by Check #47204 05/03/2024 05/24/2024 05/24/2024 05/03/2024 05/24/2024 68.00 Vendor 552 - Dragnet Pest Control Totals Invoices 1 $68.00 Vendor 309 - Elbert Distributing
24106750 elbert distributing inventory Paid by Check #47205 05/10/2024 05/24/2024 05/24/2024 05/24/2024 194.65 Vendor 309 - Elbert Distributing Totals Invoices 1 $194.65 Vendor 36 - Ewing Irrigation Products
Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 3 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 22236044 FY23/24-Parks-Irrigation
repair/maintenance parts-KC Park
Paid by Check #47206 05/08/2024 05/24/2024 05/24/2024 05/16/2024 05/24/2024 649.29 Vendor 36 - Ewing Irrigation Products Totals Invoices 1 $649.29 Vendor 442 - Fastenal Company
CAVIS153317 FASTENAL SUPPLIES Paid by Check #47207 05/06/2024 05/24/2024 05/24/2024 05/24/2024 2,358.27 Vendor 442 - Fastenal Company Totals Invoices 1 $2,358.27 Vendor 18 - The Gas Company
1683513818704/24 socalgas 180 W Merced St Unit A Paid by Check #47210 04/04/2024 05/24/2024 05/24/2024 05/24/2024 93.70 15571580420 5/24 April 2024 Paid by Check #47211 05/03/2024 05/24/2024 05/24/2024 05/24/2024 59.18 16201580004 5/24 April 2024 Paid by Check #47212 05/03/2024 05/24/2024 05/24/2024 05/24/2024 31.20 1683513818705/24 socalgas 180 W Merced St Unit A Paid by Check #47209 05/03/2024 05/24/2024 05/24/2024 05/24/2024 25.32 0865742471205/24 NATURAL GAS VEHICLE FUEL
04/01/24-05/01/24
Paid by Check #47208 05/07/2024 05/24/2024 05/24/2024 05/24/2024 2,637.77 Vendor 18 - The Gas Company Totals Invoices 5 $2,847.17 Vendor 1490 - Jorge Gonzalez
5 years Service Award 2024 Paid by Check #47213 05/22/2024 05/24/2024 05/24/2024 05/24/2024 50.00 Vendor 1490 - Jorge Gonzalez Totals Invoices 1 $50.00
Vendor 2012 - Guzman, Juan
5 years Service Award 2024 Paid by Check #47214 05/22/2024 05/24/2024 05/24/2024 05/24/2024 50.00 Vendor 2012 - Guzman, Juan Totals Invoices 1 $50.00
Vendor 139 - Henry Schein Inc.
86572502 Supplies Paid by Check #47215 05/13/2024 05/24/2024 05/24/2024 05/24/2024 307.19 Vendor 139 - Henry Schein Inc. Totals Invoices 1 $307.19 Vendor 1605 - Roberto Hernandez
5 years Service Award 2024 Paid by Check #47216 05/22/2024 05/24/2024 05/24/2024 05/24/2024 50.00 Vendor 1605 - Roberto Hernandez Totals Invoices 1 $50.00 Vendor 174 - Howard's Pest Control
122426 May 2024 Paid by Check #47217 05/03/2024 05/24/2024 05/24/2024 05/24/2024 93.00 Vendor 174 - Howard's Pest Control Totals Invoices 1 $93.00 Vendor 1721 - Image 2000 Fresno
689141 2/17 - 5/16/2024 Paid by Check #47218 05/17/2024 05/24/2024 05/24/2024 05/24/2024 400.45 Vendor 1721 - Image 2000 Fresno Totals Invoices 1 $400.45 Vendor 5 - Jorgensen & Co.
6131055 FY23/24-Parks-Fire
extinguisher/calibration
Paid by Check #47219 05/14/2024 05/24/2024 05/24/2024 05/16/2024 05/24/2024 129.68 Vendor 5 - Jorgensen & Co. Totals Invoices 1 $129.68
Vendor 1956 - Las Espuelas Inc.
Taquiza 05/29/24 Employee Appreciation Lunch
05/29/2024
Paid by Check #47220 05/15/2024 05/24/2024 05/24/2024 05/24/2024 1,400.00 Vendor 1956 - Las Espuelas Inc. Totals Invoices 1 $1,400.00 Vendor 449 - Les Schwab Tire Centers of Central California 55100338369 LES SCHWAB PD-37 Paid by Check #47221 05/09/2024 05/24/2024 05/24/2024 05/24/2024 188.66 Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 4 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 55100338400 tires les schwab U-41 Paid by Check #47221 05/10/2024 05/24/2024 05/24/2024 05/24/2024 1,406.62 55100338618 LES SCHWAB M-734 Paid by Check #47221 05/14/2024 05/24/2024 05/24/2024 05/24/2024 1,870.85 Vendor 449 - Les Schwab Tire Centers of Central California Totals Invoices 3 $3,466.13 Vendor 587 - Jacqueline Lopez
10 years Service Award 2024 Paid by Check #47222 05/22/2024 05/24/2024 05/24/2024 05/24/2024 100.00 Vendor 587 - Jacqueline Lopez Totals Invoices 1 $100.00 Vendor 640 - Miguel Lopez
10 years Service Award 2024 Paid by Check #47223 05/22/2024 05/24/2024 05/24/2024 05/24/2024 100.00 Vendor 640 - Miguel Lopez Totals Invoices 1 $100.00
Vendor 1368 - Elijah Luna
5 years Service Award 2024 Paid by Check #47224 05/22/2024 05/24/2024 05/24/2024 05/24/2024 50.00 Vendor 1368 - Elijah Luna Totals Invoices 1 $50.00
Vendor 643 - Ricky Mares
20 years Service Award 2024 Paid by Check #47225 05/22/2024 05/24/2024 05/24/2024 05/24/2024 200.00 Vendor 643 - Ricky Mares Totals Invoices 1 $200.00
Vendor 1723 - Matson Alarm Co, Inc.
4756089 FY23/24-Sportsplex-Alarm
monitoring services 6/1/24-
6/30/24
Paid by Check #47226 05/17/2024 05/24/2024 05/24/2024 05/20/2024 05/24/2024 106.00 Vendor 1723 - Matson Alarm Co, Inc. Totals Invoices 1 $106.00 Vendor 1931 - MissionSquare Plan Services
2024-00000451 30 - 457 - Employee
MissionSquare $*
Paid by EFT #2944 05/23/2024 05/23/2024 05/23/2024 05/23/2024 2,735.81 Vendor 1931 - MissionSquare Plan Services Totals Invoices 1 $2,735.81 Vendor 22 - Moore Twining Associates Inc.
4140062 moore in-house Paid by Check #47227 05/14/2024 05/24/2024 05/24/2024 05/24/2024 102.00 4140063 moore industrial Paid by Check #47227 05/14/2024 05/24/2024 05/24/2024 05/24/2024 88.00 Vendor 22 - Moore Twining Associates Inc. Totals Invoices 2 $190.00 Vendor 142 - Office Depot BSD
362847444001 Supplies Paid by Check #47228 04/24/2024 05/24/2024 05/24/2024 05/24/2024 213.97 366359258001 PD - Supplies Paid by Check #47228 05/09/2024 05/24/2024 05/24/2024 05/24/2024 305.85 Vendor 142 - Office Depot BSD Totals Invoices 2 $519.82 Vendor 954 - Office Overload Printing & Design
18354 Inspection Forms Paid by Check #47229 05/08/2024 05/24/2024 05/24/2024 05/24/2024 125.81 Vendor 954 - Office Overload Printing & Design Totals Invoices 1 $125.81 Vendor 1708 - James Olvera
June 2024 Anthem Reimb 6/01/2024-
6/30/2024
Paid by Check #47230 05/16/2024 05/24/2024 05/24/2024 05/24/2024 312.45 Vendor 1708 - James Olvera Totals Invoices 1 $312.45
Vendor 76 - Pacific Gas & Electric
4475716051804/24 PGE 180 W MERCED STE A
3/8/24-4/8/24
Paid by Check #47237 04/09/2024 05/24/2024 05/24/2024 05/24/2024 780.46 Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 5 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 7681012419804/24 PGE 180 W MERCED STE C
3/8/24-4/8/24
Paid by Check #47236 04/09/2024 05/24/2024 05/24/2024 05/24/2024 151.97 1344455159505/24 NW COR M & VENTURA AVE
04/09/24-05/07/24
Paid by Check #47231 05/08/2024 05/24/2024 05/24/2024 05/24/2024 105.64 2104753778805/24 155 W MERCED AVE 04/09/24-
05/07/24
Paid by Check #47232 05/08/2024 05/24/2024 05/24/2024 05/24/2024 97.48 2509717364205/24 L & M ALLEY @ FRESNO ST
04/09/24-05/07/24
Paid by Check #47233 05/08/2024 05/24/2024 05/24/2024 05/24/2024 79.10 8607273249705/24 L & L 1001 E EL PASO AVE
04/09/24-05/07/24
Paid by Check #47235 05/08/2024 05/24/2024 05/17/2024 05/24/2024 14.77 5683054506 05/24 PD - 04/09/2024 - 05/07/2024
Billing Charges
Paid by Check #47238 05/09/2024 05/24/2024 05/24/2024 05/24/2024 6,384.20 7314274871105/24 CS & Parks 04/02/24-05/01/24 Paid by Check #47234 05/10/2024 05/24/2024 05/17/2024 05/24/2024 3,632.25 Vendor 76 - Pacific Gas & Electric Totals Invoices 8 $11,245.87 Vendor 7 - Pena's Disposal Services
817296 FY23/24-Parks-Yard waste
disposal -Vuich Park
Paid by Check #47239 05/20/2024 05/24/2024 05/24/2024 05/21/2024 05/24/2024 345.78 817302 penas sweeper dirt/contractual Paid by Check #47239 05/20/2024 05/24/2024 05/24/2024 05/24/2024 2,015.04 Vendor 7 - Pena's Disposal Services Totals Invoices 2 $2,360.82 Vendor 687 - Cosme Pizano
10 years Service Award 2024 Paid by Check #47240 05/22/2024 05/24/2024 05/24/2024 05/24/2024 100.00 Vendor 687 - Cosme Pizano Totals Invoices 1 $100.00
Vendor 9 - Quinn Company
WON50030095 PD - Generator Engine
Service/Repairs
Paid by Check #47241 05/10/2024 05/24/2024 05/24/2024 05/24/2024 600.00 Vendor 9 - Quinn Company Totals Invoices 1 $600.00
Vendor 1099 - Ramirez Mobile Car Wash Inc.
035 PD - Unit #35 Restoration/Repairs
Services
Paid by Check #47242 05/16/2024 05/24/2024 05/24/2024 05/24/2024 645.00 Vendor 1099 - Ramirez Mobile Car Wash Inc. Totals Invoices 1 $645.00 Vendor 38 - Reedley Irrigation System
RIS-POS02-56426 FY23/24-Parks-Irrigation
parts/supplies-KC Park-Main line
repair
Paid by Check #47243 05/13/2024 05/24/2024 05/24/2024 05/20/2024 05/24/2024 261.14 RIS-POS02-56590 REEDLEY IRRIGATION SUPPLIES Paid by Check #47243 05/15/2024 05/24/2024 05/24/2024 05/24/2024 101.05 Vendor 38 - Reedley Irrigation System Totals Invoices 2 $362.19 Vendor 1691 - Serviam by Wright LLP
32504 740 Harvard - Services for Apri;
2024
Paid by Check #47244 05/01/2024 05/24/2024 05/24/2024 05/24/2024 2,254.10 Vendor 1691 - Serviam by Wright LLP Totals Invoices 1 $2,254.10 Vendor 957 - Shred-It USA LLC
8007140065 PD - Shred Service Paid by Check #47245 05/18/2024 05/24/2024 05/24/2024 05/24/2024 151.26 Vendor 957 - Shred-It USA LLC Totals Invoices 1 $151.26 Vendor 690 - Richard Smith
Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 6 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 10 years Service Award 2024 Paid by Check #47246 05/22/2024 05/24/2024 05/24/2024 05/24/2024 100.00 Vendor 690 - Richard Smith Totals Invoices 1 $100.00
Vendor 247 - State Center Community College District
18226650 PD - Basic Complaint Dispatcher
Academy - Devonney Huerta
Paid by Check #47247 05/08/2024 05/24/2024 05/24/2024 05/24/2024 337.00 Vendor 247 - State Center Community College District Totals Invoices 1 $337.00 Vendor 92 - Target Specialty Products
INVP501494904 TARGET SUPPLIES Paid by Check #47248 05/16/2024 05/24/2024 05/24/2024 05/24/2024 387.51 Vendor 92 - Target Specialty Products Totals Invoices 1 $387.51 Vendor 311 - Top Dog Training Center
1830 PD - K9 Maintenance / Zeus Paid by Check #47249 05/16/2024 05/24/2024 05/24/2024 05/24/2024 90.00 Vendor 311 - Top Dog Training Center Totals Invoices 1 $90.00 Vendor 691 - Luz Torres
20 years Service Award 2024 Paid by Check #47250 05/22/2024 05/24/2024 05/24/2024 05/24/2024 200.00 Vendor 691 - Luz Torres Totals Invoices 1 $200.00
Vendor 1633 - Toyota Industries Commercial Finance, Inc. 4004140276 toyota lease Paid by Check #47251 05/14/2024 05/24/2024 05/24/2024 05/24/2024 950.73 Vendor 1633 - Toyota Industries Commercial Finance, Inc. Totals Invoices 1 $950.73 Vendor 902 - Tractor Supply Credit Plan
9564 04/29/24 PD & PW Supplies Paid by Check #47252 04/29/2024 05/24/2024 05/24/2024 05/24/2024 645.40 Vendor 902 - Tractor Supply Credit Plan Totals Invoices 1 $645.40 Vendor 193 - Training Innovations, Inc.
24-033 PD - TMS Software Support
Subscription FY2024/25
Paid by Check #47253 05/15/2024 05/24/2024 05/24/2024 05/24/2024 800.00 Vendor 193 - Training Innovations, Inc. Totals Invoices 1 $800.00 Vendor 307 - Tulare County Consolidated Ambulance Dispatch, Inc 24-05-07 April 2024 Paid by Check #47254 05/17/2024 05/24/2024 05/24/2024 05/24/2024 7,389.90 Vendor 307 - Tulare County Consolidated Ambulance Dispatch, Inc Totals Invoices 1 $7,389.90 Vendor 296 - Tulare Kings Veterinary Emergency
219532 PD - Vet Fees Paid by Check #47255 05/18/2024 05/24/2024 05/24/2024 05/24/2024 148.18 Vendor 296 - Tulare Kings Veterinary Emergency Totals Invoices 1 $148.18 Vendor 51 - Urban Futures Inc.
CD-2023-0028 Continuing Disclosures and
Compliance Services - FY 2023
Reporti
Paid by Check #47256 05/21/2024 05/24/2024 05/24/2024 05/24/2024 14,400.00 Vendor 51 - Urban Futures Inc. Totals Invoices 1 $14,400.00 Vendor 273 - US Bank
8693601312417 FY23/24-Parks-Fuel Charges-CNGApril 2024Paid by Check #47257 04/24/2024 05/24/2024 05/24/2024 05/21/2024 05/24/2024 32.77 Vendor 273 - US Bank Totals Invoices 1 $32.77
Vendor 154 - USA Bluebook
INV00257193 usa blue book Vis jacket Paid by Check #47258 01/25/2024 05/24/2024 05/24/2024 05/24/2024 106.27 INV00257332 usa blue book supplies Paid by Check #47258 01/25/2024 05/24/2024 05/24/2024 05/24/2024 1,139.88 Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 7 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount INV00277583 usa blue book drum pump kit Paid by Check #47258 02/14/2024 05/24/2024 05/24/2024 05/24/2024 1,317.12 Vendor 154 - USA Bluebook Totals Invoices 3 $2,563.27
Vendor 359 - Valero Marketing & Supply Company
96955905 PW Fuel for April 2024 Paid by EFT #2943 05/06/2024 05/24/2024 05/24/2024 05/24/2024 10,903.29 Vendor 359 - Valero Marketing & Supply Company Totals Invoices 1 $10,903.29 Vendor 354 - Verizon Wireless
9961559363 Mar/Apr 2024 Paid by Check #47259 04/12/2024 05/24/2024 05/24/2024 05/24/2024 394.24 9963583877 Verizon pw Paid by Check #47260 05/07/2024 05/24/2024 05/24/2024 05/24/2024 1,112.86 9963767671 PD - 04/11/2024 - 05/10/2024 Paid by Check #47261 05/10/2024 05/24/2024 05/24/2024 05/24/2024 2,200.81 Vendor 354 - Verizon Wireless Totals Invoices 3 $3,707.91 Vendor 21 - Vestis Services LLC
5031407462 FY23/24-Parks-uniform
allowance/safety supplies
Paid by Check #47262 05/15/2024 05/24/2024 05/24/2024 05/16/2024 05/24/2024 110.16 Vendor 21 - Vestis Services LLC Totals Invoices 1 $110.16 Vendor 1444 - Video Inspection Specialists, Inc.
9025 video inspection cleaning of city's
lift station
Paid by Check #47263 03/21/2024 05/24/2024 05/24/2024 05/24/2024 2,632.50 Vendor 1444 - Video Inspection Specialists, Inc. Totals Invoices 1 $2,632.50 Vendor 297 - Vincent Communications, Inc.
88167 M-732 Equipment Paid by Check #47264 04/29/2024 05/24/2024 05/24/2024 05/24/2024 7,425.63 Vendor 297 - Vincent Communications, Inc. Totals Invoices 1 $7,425.63 Vendor 403 - Visalia Times-Delta
TD0054706 05/24 PD - 05/01/2024 - 05/31/2024
Billing Charges
Paid by Check #47265 05/01/2024 05/24/2024 05/24/2024 05/24/2024 36.00 Vendor 403 - Visalia Times-Delta Totals Invoices 1 $36.00 Vendor 820 - Vulcan Materials Company
73994007 VULCAN BASE ROCK & FILL SAND Paid by Check #47266 05/08/2024 05/24/2024 05/24/2024 05/24/2024 2,318.58 Vendor 820 - Vulcan Materials Company Totals Invoices 1 $2,318.58 Vendor 2062 - W & E Electric
2404081 w & e lift pump at Sequoia and
Alta
Paid by Check #47267 04/19/2024 05/24/2024 05/24/2024 05/24/2024 312.73 Vendor 2062 - W & E Electric Totals Invoices 1 $312.73
Vendor 2072 - Wells Fargo Vendor Financial Services LLC 5029616744 June 2024 Paid by Check #47268 04/27/2024 05/24/2024 05/24/2024 05/24/2024 115.01 Vendor 2072 - Wells Fargo Vendor Financial Services LLC Totals Invoices 1 $115.01 Vendor Nationwide Legal, LLC
04182024 Reimbursement - Subpoena for
Personal Appearance -
VCU293427
Paid by Check #47269 05/21/2024 05/24/2024 05/24/2024 05/24/2024 275.00 Vendor Nationwide Legal, LLC Totals Invoices 1 $275.00
Grand Totals Invoices 132 $797,353.10
Run by Rosemary Silva on 05/24/2024 09:05:30 AM Page 8 of 8 Accounts Payable Invoice Report
Payment Date Range 05/18/24 - 05/24/24
Report By Vendor - Invoice
Summary Listing
City Council Staff Report
Department: FIRE SERVICES May 28, 2024
To: Mayor and City Council
From: Greg Chastain, Fire Chief
Subject:
Resolution No. 2024-45 Authorization to Execute a Memorandum of Understanding Between the City of Dinuba and Alta Healthcare District (GC)
RECOMMENDATION
Council adopt Resolution No. 2024-45 approving a Memorandum of Understanding (MOU) between the City of Dinuba and Alta Healthcare District and authorize the City Manager to execute the document.
EXECUTIVE SUMMARY
The Dinuba Fire Department requested funds from Alta Healthcare District to increase EMT staffing and provide ambulance replacement on a regular interval. On March 21, 2024, the Alta Healthcare District approved a grant in the amount of $490,000 per year to fund three (3) single-role EMTs and $190,000 per year to purchase an ambulance every 18 months, not to exceed $285,000 per ambulance.
OUTSTANDING ISSUES
None.
DISCUSSION
The Dinuba Fire Department has been working closely with the Alta Health Care District (District) on grant funds to pay for emergency response personnel and ongoing funding for the purchase of new ambulance vehicles. The District Board agreed to provide the City with funding to hire three new (3) single-role emergency medical Technicians (EMT) and purchase new ambulance vehicles totaling $490,000 per year.
During recent recruitments, the Dinuba Fire Department experienced alarmingly low numbers of paramedic applicants. In an effort to maintain ambulance staffing, a single-role EMT position was proposed. The Dinuba Fire Department requested funds from District to fund single-role EMTs and provide ambulance replacement on a regular interval. The increased staffing will allow a third ambulance to be placed in service during days with minimum staffing and will allow a fourth ambulance to be placed in service when the department is fully staffed. Having more ambulances available reduces the likelihood of requiring an outside agency to respond when the department experiences concurrent calls for service.
In addition, the single-role EMT position is an entry-level position that will allow employees to work as an EMT while they attend the fire academy and/or paramedic school. The ambulance replacement funds will ensure that older, high-mileage ambulances are replaced with new, reliable units.
The attorneys for the City of Dinuba and the District have prepared a Memorandum of Understanding outlining the terms and use of the funding. A copy of the MOU is enclosed as Attachment 'A', and summarized as follows:
Use of Grant Funds Annual Grant
Commitment
Expenditure
Period
Annual Cost of Employment by
Dinuba Fire Department for three (3)
Emergency Medical Technicians
assigned to Ambulance Service, not
to exceed $100,000 per employee
per year
$300,000.00 Annually
Cost of acquisition by Dinuba Fire
Department of one fully equipped
ambulance every 18 months, not to
exceed $285,000 per ambulance
$190,000.00 At time of
Ambulance
acquisition
TotalAnnual Project Budget $490,000.00
Under the terms of the MOU, the City agrees to track District funds separately in the EMS Enhancement Fund and any unused funds will be returned to the District at the end of the fiscal year.
The ambulance replacement funds will be released by the District when an invoice for the ambulance is provided to them (not to exceed $285,000).
The MOU will continue until either party provides written notice of intent to terminate the agreement. If termination notice is given, the funding will terminate on the third anniversary date of the notice to terminate. Thus, the funding will continue for three years following the date of termination notice.
An Oversight Committee will be established to oversee the use of the funds and meet annually to review the annual report prepared by the Fire Chief. The Oversight Committee will consist of six (6) members: three (3) representatives from the District and three (3) representatives from the City (two Councilmembers and the Finance Director).
Staff is requesting that the City Council adopt Resolution No. 2024-45 enclosed herein as Attachment 'B' approving the MOU and authorizing the City Manager or designee to sign the agreement.
FISCAL IMPACT
AHCD will provide $300,000 per year to fund three (3) single-role EMTs. This amount is sufficient to cover the cost of salaries and associated benefits. Costs that exceed the amount provided, such as overtime or future salary adjustments, will be paid out of the Ambulance Fund. AHCD will budget $190,000 per year to provide an ambulance and associated equipment every 18 months, not to exceed $285,000 per ambulance. Any equipment or vehicle costs that exceed the amount provided will be paid out of the Ambulance Fund.
PUBLIC HEARING
ATTACHMENTS:
Description
Attachment 'A'
Attachment 'B'
RESOLUTION 2024-45
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DINUBA APPROVING THE EMT STAFFING AND AMBULANCE FUNDING
MEMORANDUM OF UNDERSTANDING BETWEENT THE CITY OF DINUBA AND ALTA
HEALTHCARE DISTRICT
WHEREAS, the City of Dinuba has an obligation to provide ambulance service to the citizens of Dinuba and other areas within the exclusive operating area; and, WHEREAS, the exclusive operating area of the Dinuba Fire Department’s ambulance service is nearly identical to Alta Healthcare District’s boundaries; and, WHEREAS, the daily staffing level of the fire department varies with fluctuations in vacancies, injuries, and other leaves; and,
WHEREAS, the Alta Healthcare District’s mission is “to enhance the physical and mental health of all residents of the District from conception to final passing”; NOW, THEREFORE, BE IT RESOLVED that the City Council of Dinuba hereby approves of the EMT staffing and ambulance funding Memorandum of Understanding between the City of Dinuba and Alta Healthcare District.
IN WITNESS THEREOF, I, Maribel Reynosa, Mayor of the City of Dinuba have hereunto set my hand and caused the great seal of the City of Dinuba to be affixed, on this _28th day of ___May__ two-thousand-twenty-four.
PASSED AND ADOPTED this 28th_ day of ___May______, 2024___ by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
________________________________
Mayor
ATTEST:
______________________________
City Clerk
MEMORANDUM OF UNDERSTANDING
This MEMORANDUM OF UNDERSTANDING (the “MOU”) is made and effective as of July 1, 2024, by and between Alta Healthcare District (“District”), and the City of Dinuba (“Grantee”). The District and Grantee are collectively referred to in this MOU as the (“Parties”) and individually as a (“Party”). This MOU is made with reference to the following facts:
A. The District is a California local health care district organized and existing pursuant to Health and Safety Code §§ 32 et seq.;
B. The Grantee is a municipal corporation organized and existing under a voterapproved charter pursuant to Article 11, § 3(a), of the California Constitution; C. The Grantee operates a full-time fire department, which includes an ambulance service component, through which it provides emergency medical services and ambulance transportation services. Grantee’s ambulance administration and services are provided in a manner consistent with Health & Safety Code 1797.201(better known as Section 201 of the Emergency Medical Services Act or “EMS”). The funding and expenses, including personnel expenses, for the ambulance services are segregated from the remainder of the Fire Department funding and expenses, and are managed and tracked through the “Ambulance Fund”, a component of the City of Dinuba municipal budget;
D. Consistent with the requirements of the EMS, the Grantee’s ambulance service is provided throughout a region designated as an Ambulance District per Section 201.
The Ambulance District’s boundaries are nearly identical to the District’s jurisdictional boundaries, which has led to a long-standing interest in coordinating efforts, including funding, between the two agencies;
E. The District recognizes the need for enhanced emergency medical services within the District’s jurisdiction, and the ability of Grantee, through operation of its ambulance service, to provide emergency medical services; F. On March 21, 2024, the Grantee presented a Grant Application to the District requesting funds for the purpose of enhancing Grantee’s provision of emergency medical services through the purchase of one new ambulance every 18 months, not to exceed $285,000.00 per ambulance, and to support the hiring of three (3) singlerole EMT personnel, not to exceed $300,000.00 annually ($100,000.00 EMT Position filled annually) (“Grant Project” and “Project Budget”, more particularly described in Exhibit A attached hereto);
G. As set forth in the Grant Project, the purpose of the three additional single-role EMT positions is to allow, on an ongoing basis, for the full staffing of three, and eventually four ambulances, and to avoid taking ambulances out of service due to personnel being needed for other Fire Department purposes, and thereby minimizing or eliminating the need to refer ambulance for service by agencies outside the designated Ambulance District.
H. As part of the consideration of the Grant Request, Grantee proposed that the provision of annual support for the identified EMT personnel provisions be on a continuing, or rolling three-year basis, allowing for certainty of funding for the positions in order to attract and retain qualified applicants.
I. On March 21, 2024, the District, at a regular Board of Directors meeting, voted to approve the grant application on the condition that the parties enter into a Memorandum of Understanding setting forth the terms by which funding would be provided on an ongoing, rolling three year basis, while providing continuing oversight over the effective implementation and satisfaction of the objectives of the Grant Request.
THEREFORE, intending to be legally bound, the Parties agree as follows:
1. PURPOSE. The purpose of the MOU is to set forth the terms by which funding would be provided by the District to the Grantee, on an ongoing, rolling three-year basis, while providing oversight over the effective implementation and satisfaction of the objectives of the Grant Request.
2. GRANT TERMS and CONDITIONS. During the Term the parties agree to implement the Grant Project, subject to the following terms and conditions.
2.1 Responsibility of Grantee. Grantee shall:
a) Undertake, carry out, and complete, in a competent manner, all of the work and services set forth in the Project and operate within the financial constraints of the approved Project Budget.
b) Establish a separate bookkeeping record in which only the Grant shall be balanced and from which the Grantee will record payments to contractors, suppliers and others to cover eligible expenses.
c) Keep accurate, current, and complete records relating to the Project and disbursements of the Grant.
d) Maintain acceptable financial management systems during the term of the Grant. Such systems shall provide:
i) Accurate, current, and complete disclosures of the financial activity under the Grant
ii) Effective control over and accountability for all Grant funds, property, and other assets under the Project
iii) Comparison of actual outlays with budgeted Grant disbursements iv) Accounting records supported by source documentation. e) Ensure that all costs incurred under the Grant Project are reasonable and properly incurred as per the approved Grant Project budget and objectives. f) Submit to the District the reports identified in Exhibit C (Reports) including narrative information and full financial accounting of the expenditure of all of the Grant Funds.
g) Preserve and make available all Project related records for examination and audit by the District or its authorized representatives for a period not less than six (6) years unless written approval has been obtained from the District for the early disposal of such records.
h) Where the Grantee has secured an opportunity to promote or discuss aspects of the Project funded by the Grant whether through signage, on the radio, television or through the internet, print media, or other media of communication, the District shall be acknowledged as funding the project.
Please advise in advance of any plans to hold a media event, create a photo opportunity, or distribute a news release to publicize the initiative and/or recognize the grant so the District can be prepared to respond to inquiries or try to attend the event. Please use the District logo and the following language to acknowledge the Grant:
"This project was funded (or funded in part) by a grant from Alta Healthcare District”
A copy of the logo is available from the District’s Clerk of the Board. i) Exercise its responsibilities under the contract in good faith and shall be responsible in the performance of work for exercising the degree of care required by customarily accepted good professional practices and procedures. j) Ensure that all grant funds are expended on allowable expenses prior to the expiration of the Term as defined in paragraph 3, or within the periods for which such funds are designated to be expended pursuant to the Project Budget. If the Grant Funds Disbursement Schedule (Exhibit B) provides for disbursement of funds in advance of expenditure by Grantee, Grantee shall refund to the District any disbursed funds in excess of actual costs incurred for the Project, and any funds not expended prior to the expiration of the term, within the periods for which such funds are designated to be expended pursuant to the Project Budget.
k) Notify the District in a timely manner of any change in circumstances that prevents the expenditure of funds consistent with the terms of this Agreement.
Grantee may propose a change to the use of funds to address a change in circumstances, including an extension of time to expend funds; any such proposal must be submitted as a Grant amendment, subject to review and approval by the District’s Board of Directors.
2.2 Responsibility of Alta Healthcare District. During the Term as described in Section 3 herein, the District shall make the annual Grant Commitment as described in Exhibit A, and shall disburse funds to the Grantee by check on the schedule identified in Exhibit B (Disbursement Schedule). The obligation of the District to make the annual Grant Commitment, and to disburse funds pursuant to this Agreement is contingent upon the District’s actual receipt of sufficient tax proceeds annually in an amount sufficient to satisfy the total annual Grant Commitment.
2.3 Warrantee of Grantee. The Grantee warrants that it is an organization, duly organized, validly existing, and in good standing under the laws of California and that it has full power to execute this Agreement and to perform its obligations under this Agreement.
2.4 Limit of Commitment. Unless otherwise approved by the District’s board, this Grant shall be for the term stated herein and is not renewable except in the manner stated in the Term provisions. Nothing in this Agreement shall preclude Grantee from making application to the District for any future grant funds which may become available from the District. Grantee will not be entitled to priority or special consideration by the District in connection with future grant applications solely because of the fact that Grant Funds were awarded under this Agreement.
2.5 Status of Parties. The Grantee shall act as the sole employer for any personnel employed as a result of the Grant Project and, and no employee of Grantee shall be deemed an employee or agent of the District. The Grantee shall be solely responsible to third parties for the payment of and all claims for loss, personal injury, death, property damage, or otherwise, arising out of any act or omission in relation to the Project.
2.6 Refund of Grant. The District reserves the right to require a refund by the Grantee of any amount which the Oversight Committee determines to have been expended for purposes not in accordance with the objectives and the approved Project Budget of the Grant. The parties acknowledge that all sums expended pursuant to the approved Project Budget are presumptively determined to be to in accordance with the objectives of the Grant Project and the Grant Terms and Conditions.
3. TERM.
3.1 Term. The District agrees to provide the annual Grant Commitment as described in Exhibit A for each of its fiscal years (July 1-June 30), commencing July 1, 2024, and for each successive fiscal year thereafter until this Agreement is terminated pursuant to Paragraph 3.2 below. July 1 of every year is defined as the Anniversary Date.
3.2 Termination Notice. Either Party may terminate this agreement by providing written notice to the other Party of intention to terminate (“Termination Notice”). A Termination Notice shall be effective on the third Anniversary Date to occur after the date of Termination Notice. The following is an example of the application of this paragraph: a Termination Notice provided on June 3, 2025, would result in the termination of the agreement on July 1, 2028; the District would remain obligated to make annual Grant Commitments for the 2025, 2026 and 2027 fiscal years, and the obligation would no longer apply to the 2028 fiscal year.
4. SPECIAL GRANT CONDITION – Maintenance of Effort. As a condition of the District’s agreement to make the annual Grant Commitment and to disburse Grant Funds as described herein, Grantee agrees that it shall maintain both funding levels and staffing levels within the Ambulance Fund at amounts that are equal to or exceed that as provided in the 2023-2024 Fiscal Year Budget.
5. OVERSIGHT COMMITTEE.
5.1Purpose and Organization. There shall be established an Oversight Committee for the purpose of reviewing, on an annual basis, the Annual Report as specified in Exhibit C. Each Party shall select three (3) Representatives for a total of six (6) Representatives to constitute the Oversight Committee. The Parties shall select Representatives as follows:
a) The City of Dinuba: Two (2) City Council Members and a Finance Director b) Alta Healthcare District: Two (2) Directors and the Chief Fiscal Officer
5.2 Oversight Committee Meetings. The Oversight Committee shall discuss ongoing operations and continued benefit creations including but not limited to the review of annual budgets; annual performance reports; and maintenance of effort terms. The Committee shall meet annually on or before June 15.
5.3Recommendations. At each annual meeting the Oversight Committee will consider the following:
a) Review and acceptance of the Annual Report as presented by the Dinuba Fire Chief (Exhibit C) ;
b) Consideration of any modification of the Grant Project that either of the Parties may propose, for recommendation for approval by the respective Parties’ governing bodies.
IN WITNESS WHEREOF, the Parties have executed this MOU as of the date first above written.
CITY OF DINUBA
By: ____________________________
City Manager
Approved as to Form
By: ____________________________
City Attorney
ALTA HEALTHCARE DISTRICT
By: ____________________________
Chairperson
Approved as to Form
By: ____________________________
General Counsel
Exhibit A
Project and Grant Amount Breakdown
Project Description: That project described in the Grant Application dated 02/27/2024, incorporated herein by reference.
Project Summary [From Grant Application]:
The Grantee will use grant funds from the District to add three Single-Role EMT positions.
This will allow three ambulances to remain in service (with the EMT accompanied by a paramedic). It will also allow employees to work at Dinuba Fire Department (“DFD”) as EMTs while they attend paramedic school. As personnel become licensed paramedics, DFD can move those personnel up to the vacant positions and hire EMTs to then fill the newly vacant entry level positions. Due to vacation accrual, sick leave, injuries, and challenges retaining funded but vacant new paramedic positions, DFD has at times been short on personnel and could not respond to EMS calls for service. DFD relied on mutual aid from another ambulance provider from Reedley, Visalia, and Kingsburg (known as referrals for external service) over 250 times in recent years. The additional staff will allow another ambulance to join the rotation and provide additional assistance to the engine crew. Further, as the vacant new paramedic positions are eventually filled, the additional EMT positions will then allow a fourth ambulance to be in service, with the aim of further reducing referrals for external service.
The Project also includes the funding of one new ambulance every 18 months, in order to keep an adequate rotation of ambulances available.
Summary of Use of Grant Funds, Grant Amount and Breakdown:
The District will make an annual Grant Commitment, to be reflected in the District’s annual budgets, as follows:
Annual Project Budget:
Use of Grant Funds Annual Grant
Commitment
Expenditure
Period
Annual Cost of Employment by Dinuba Fire
Department of three (3) Emergency Medical
Technicians assigned to Ambulance Service,
not to exceed $100,000 per employee per year
$300,000.00 Annually
Cost of acquisition by Dinuba Fire Department
of one fully equipped ambulance every 18
months, not to exceed $285,000 per
ambulance
$190,000.00 At time of
Ambulance
acquisition
Total Annual Project Budget $490,000.00
Grantee may draw on the Grant Commitments by providing notice on the schedule as described in Exhibit B.
Exhibit B
Disbursement Schedule
In accordance with the terms of this Agreement, Alta Healthcare District shall disburse the following payment to the GRANTEE:
DATE PURPOSE AMOUNT
Within 30 days of notice
from Grantee that 1)
Grantee has recruited and
commenced employment
of a qualified EMT; or 2) the
anniversary date of the
employment of a previously
recruited EMT has
occurred, and the EMT
remains employed by
Grantee
Anticipated employment costs of one
EMT position, up to three per year;
payment will be lump sum, subject to
return in event of full or partial non-use,
pursuant to terms of Grant Agreement
Not to exceed
$100,000 per
employee.
Within 30 days of
presentation from Grantee
of an order or invoice for a
fully equipped ambulance
Purchase of fully equipped ambulance;
payment will be lump sum, subject to
return in event of full or partial non-use,
pursuant to terms of Grant Agreement
Not to exceed
$285,000 per
ambulance
Exhibit C
Reports
Annual Oversight Committee Reports:
Report Required: Oversight Accounting and Performance Report Date Due: June 1 of each year of the Term
Required Contents:
A. Narrative description of project completion status, use of Grant Funds consistent with Agreement.
B. Itemized accounting of use and expenditure of Grant Funds, including:
a. Comparison of actual outlays with approved Project Budget Grant disbursements
b. Accounting records supported by source documentation. c. Identification of any disbursed but unused funds to be returned to AHCD.
C. Disclosure of Dinuba Fire Department Ambulance Service Enterprise Fund Budgets establishing consistency with maintenance of efforts terms of the MOU.
D. Review of performance matrices, which unless otherwise agreed by the Oversight Committee shall consist of comparison of annual total of referrals to external agencies for ambulance calls for service, broken down by appropriate categories, to compare pre-grant performance to with-grant performance.
City Council Staff Report
Department: PUBLIC WORKS May 28, 2024
To: Mayor and City Council
From: George Avila, Public Works Director
By: Elva Patino, Business Manager
Subject:
Award Professional Services Agreement to 4 Creeks, Inc. for the Dinuba Entertainment Plaza Renovation & Beautification Project (GA)
RECOMMENDATION
Council award Professional Services Agreement with 4 Creeks, Inc. in the amount $528,000 for design and construction management services for the Dinuba Entertainment Plaza Renovation & Beautification Project and authorize the City Manager or designee to execute the agreement.
EXECUTIVE SUMMARY
The City of Dinuba was awarded Clean California Local Grant Program (CCLGP) funds in the amount of $2,926,000 for the Dinuba Entertainment Plaza Renovations & Beautification Project. Staff conducted a formal bidding process to procure design and construction management service for this project and received one proposal from 4 Creeks, Inc. in the amount of $528,000. It is recommended Council authorize the City Manager or his designee to execute the required professional services agreement.
OUTSTANDING ISSUES
None.
DISCUSSION
On February 23, 2024, the City of Dinuba received a notice of award from CalTrans for the Dinuba Entertainment Plaza Renovations & Beautification Project in the amount of $2,926,000. This project is funded by the Clean California Local Grant Program (CCLGP). The CCLGP is a competitive statewide program created to beautify and clean up local streets and roads, pathways, transit centers, and other public spaces. This project will enhance the quality of life for Dinuba residents and locally owned businesses adjacent to the Entertainment Plaza, as the downtown hub for many events throughout the year.
The Entertainment Plaza plays a vital role in the City's cultural landscape. Its located in the heart of downtown Dinuba and is an inclusive space for enjoyment. The project proposes the installation of shade structures, benches, picnic tables, trash receptacles, decorative entrances, monument signs, painting of a mural on the restroom wall, elevated planters with drought tolerant plants, renovation of the existing pavilion stage, and the replacement of turf with no-mow, low-water use grass.
Staff prepared and distributed request for proposals on April 9, 2024. The deadline to submit proposals was May 7, 2024. The City received one (1) bid proposal from 4 Creeks, Inc. for project plans, specifications & estimates & construction engineering in the amount of $528,000. City staff reviewed and rated the comprehensive proposal which included the scope of the project, budgetary requirements, timeline, and expected outcomes and determined that the proposal from 4 Creeks, Inc. aligns with project objectives. It is staffs recommendation that the City Council authorize the City Manager or its designee to execute an agreement attached herein as attachment 'A' to 4 Creeks, Inc in the amount of $528,000.
FISCAL IMPACT
This project is 100% funded by the Clean California Local Grant Program with no matching funds.
PUBLIC HEARING
None.
ATTACHMENTS:
Description
A. Professional Services Agreement - 4Creeks Inc.
City Council Staff Report
Department: CITY CLERK May 28, 2024
To: Mayor and City Council
From: Maria Alaniz, City Clerk/Human Resources Director Subject: Conference with Labor Negotiators (MA)
RECOMMENDATION
Pursuant to GC Subdivision 54957.6; Agency designated representative: Maria Alaniz; Karina Solis; Luis Patlan; Daniel James
Employee Organizations: City Employees' Association; Police Officers' Association; Firefighters' Association; and Unrepresented Employees
EXECUTIVE SUMMARY
OUTSTANDING ISSUES
DISCUSSION
FISCAL IMPACT
PUBLIC HEARING
City Council Staff Report
Department: CITY MANAGER'S OFFICE May 28, 2024
To: Mayor and City Council
From:
Subject: Conference with Legal Counsel - Anticipated Litigation (LP)
RECOMMENDATION
Discuss threat of litigation, pursuant to subdivision (b) of Government Code Section 54956.9; Two (2) cases.
EXECUTIVE SUMMARY
OUTSTANDING ISSUES
DISCUSSION
FISCAL IMPACT
PUBLIC HEARING