Agenda packet — Gonzales City Council, August 15, 2022

Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

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A G E N D A

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
CITY COUNCIL CHAMBERS – 117 FOURTH STREET
GONZALES, CA 93926
MONDAY, AUGUST 15, 2022
6:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

1. ROLL CALL- City Council/Successor Agency
Mayor Pro Tem/Vice Chair Scott Funk, Council/Agency Member Liz Silva, Council/Agency Member Lorraine Worthy, Council/Agency Member Paul Miller, Mayor/Chair Jose L. Rios
Successor Agency Item

If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on Monday, August 15th to the City Clerk at [email protected]

PRESENTATIONS

2. Young Legislators Program

3. Salinas Valley Safe Routes to School Plan

4. Gonzales Youth Council Summer Fellowship Capstone

5. Appointment of New Youth Commissioners

BUSINESS FROM THE PUBLIC

6. Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed three minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action.

*
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

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CONSENT AGENDA
All matters listed under the Consent Agenda are considered routine by the City Council and will be adopted by one action of the Council unless any Council Member has a question or wishes to make a statement or discuss an item. In that event, the Mayor will remove the item from the Consent Calendar for separate consideration.

7. Approve the Joint City Council and Successor Agency - Regular Meeting - August 1, 2022 Minutes

8. Approve City Accounts Payable Warrants #47406-47461

9. Community Development Department Activity Report

10. Community Engagement & Strategic Partnerships Activity Report

11. Fire Department Activity Report

12. Police Department Activity Report

13. Public Works/City Engineer Department Activity Report

14. Recreation Department Activity Report

15. Consider Approval of Resolution No. 2022-60, A Resolution of the City Council of the City of Gonzales Authorizing the Establishment and Maintenance of Bank Accounts for Municipal Funds and Repealing Resolutions in Conflict Herewith

16. Consider Approval of Resolution No. 2022-61, A Resolution of the City Council of the City of Gonzales Authorizing Investment of Monies in the Local Agency Investment Fund

REGULAR AGENDA

17. Presentation on Proposed New City Limit Signs
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Receive presentation and provide any feedback

18. Consider Approval of Resolution No. 2022-62, A Resolution of the City Council of the City of Gonzales In Support of Measure D, a Measure to be Considered at a Special All-Mail Ballot Election on August 30, 2022, Increasing the City’s Transactions and Use Tax (Sales Tax) by One-Half Percent (0.5%), with the Use of Such Special Tax Funds to Initially be Dedicated Exclusively to the Gonzales Community Center Complex Project and Thereafter to Road Maintenance and Repair, with the Use of Such Revenue to be Subject to Annual Audits by an Independent Auditor a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2022-62

19. Consider Approval of Resolution No. 2022-58, A Resolution of the City of Gonzales, approving and authorizing an Agreement Between Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and the City of Gonzales for Purchase and Sale of Real Property and Escrow Instructions for the property located at 498 S. Alta Street, Gonzales, Ca. (APN 020-041-016)
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2022-58
*
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

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BUSINESS FROM CITY COUNCIL

20. Consider Appointment to the Planning Commission

21. Consider Appointment of Voting Delegate for the League of California Cities Conference

22. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
b. Association of Monterey Bay Area Governments
c. Monterey Salinas Transit
d. City & School Joint Steering Committee
e. Economic Development Committee

23. Oral Communications

BUSINESS FROM CITY MANAGER

24. Oral Communications

CLOSED SESSION
Any member of the public may address the Council on a closed session item appearing on the agenda.

Speakers shall have a limited time of three (3) minutes. Please be brief and to the point.

25. The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957(b)(1)- City Manager -Employment/Recruitment.

ADJOURNMENT

In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (831) 675-5000. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (CFR 35.102-

35.104 ADA Title II). This is a public meeting and as such, can be seen live by people present or online and is being recorded; therefore; anything you say or do here is public information. The recordings are available online.

Young Legislators Program
2022
Office of Senator Anna Caballero
Packet Pg. 4
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) AGENDA
ITEM
2 Program Information
• When –
o Session 1: Friday, June 10
o Session 2: Friday, June 17
o Session 3: Friday, June 24
o Session 4: Friday, July 1
• Where –
o Virtual Program through Zoom
Intro to
Government
Session
1 Mental Health
Awareness
Session
2 Elections & Civic
Engagement/Mock
Hearings
Session
3 Capitol Trip
Session
4 Packet Pg. 5
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Session 1 – Intro to
Government
Guest Speakers
Congressma
n
Jim Costa
San Benito
County
Supervisor Bea
Gonzales
City of
Kingsburg –
Councilmember
Jewel Hurtado
Gonzales
Unified School
District
Board of
Trustee:

Celeste Daniel
Packet Pg. 6
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Session 2 – Mental Health
Awareness
Guest Speakers
Allen Brooks
Realtor, President of Merced
NAACP, Merced County School
Board Trustee
Heather Walker Janz Educator,
Therapist, Advocate, Janz
Family Therapy
Packet Pg. 7
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Session 3 – Elections & Civic
Engagement
Guest Speakers
Gina Martinez
Registrar of Voters for
Monterey County
Elections Office
Ryan Gonzalez
YLP Alumni from
2019 – about to
run for City
Council in
Firebaugh
Luis Quinones
Chief of Staff
for Senator
Anna Caballero
Packet Pg. 8
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Mock Hearing- Group 1 .

SB 1142 (Caballero)- Access and Support for Abortion Services Assignments- committee
Committee Members
Witness in Support
Opposition- Member of the Public
Support- Member of the Public
Packet Pg. 9
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Mock Hearing- Group 2 .

SB 1101 (Caballero)- Carbon Capture, Sequestration and Utilization Assignments- committee
Committee Members
Witness in Support
Opposition- Member of the Public
Support- Member of the Public
Packet Pg. 10
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Capitol Trip Overview
• Friday, July 1, 2022
• Agenda
• 10:00 AM- Arrive to Sacramento Capitol
• 10:00 AM to 10:45 AM- Self-guided Capitol tour
• 11:00 AM to 12:30 PM- California Museum
• 12:30 PM to 1:30 PM- Lunch
• 2:00 PM to 5:00 PM- Driving Home
Packet Pg. 11
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Senate Floor Gallery
Packet Pg. 12
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Thank You!
Packet Pg. 13
Attachment: Powerpoint Presentation (2511 : Young Legislators Program) Salinas Valley
Safe Routes to
Schools Plan
Gonzales City Council
August 15th, 2022
Amelia Conlen, Ecology Action
AGENDA
ITEM
Packet Pg. 15
Attachment: GonzalesCouncil_Presentation (2504 : Safe Routes to School Presentation) 3 Project Overview • 22 schools in Greenfield, Soledad, Gonzales, & King City
• Partnership between TAMC, MCHD, Ecology Action, Cities, and 5 school districts
• Funded by Caltrans Planning Grant
• 2022 –early 2024
• Steering Committees for each city
Packet Pg. 16
Attachment: GonzalesCouncil_Presentation (2504 : Safe Routes to School Presentation) Plan Process
Draft Recommendations
Winter 2022/2023
Parent Outreach
Fall 2022
School Audits
Fall 2022
Packet Pg. 17
Attachment: GonzalesCouncil_Presentation (2504 : Safe Routes to School Presentation) Plan Process
Parent Feedback
on Draft
Recommendations
Spring 2023
Temporary Installations
(Pop-ups)
Spring – Fall 2023
Final Plan
Late 2023 Packet Pg. 18
Attachment: GonzalesCouncil_Presentation (2504 : Safe Routes to School Presentation) Share Your Input! • August 28th: Outreach at Blue Zones Kickoff event, 12-3pm in Central Park
• September/October: School audits
at each school
• Now – October: Take a short survey
and attend a parent meeting
Packet Pg. 19
Attachment: GonzalesCouncil_Presentation (2504 : Safe Routes to School Presentation) Join the Gonzales Steering Committee
• $250K available for project
implementation
• Help decide how funding is spent!
• Monthly meetings from winter
2022 to spring 2023
Packet Pg. 20
Attachment: GonzalesCouncil_Presentation (2504 : Safe Routes to School Presentation) Learn More and Apply
https://saferoutesmonterey.org/
evaluation-salinasvalley/
Call (831) 915-9750
Se hablá español
Packet Pg. 21
Attachment: GonzalesCouncil_Presentation (2504 : Safe Routes to School Presentation)

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MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL,

GONZALES SUCCESSOR AGENCY, AND

PLANNING COMMISSION
MONDAY, AUGUST 1, 2022
5:30 P.M.

CALL TO ORDER
The meeting was called to order at 5:30 PM by Mayor Jose L. Rios.

PLEDGE OF ALLEGIANCE
The flag salute was recited by all present.

ROLL CALL - City Council
Attendee Name Title Status
Jose L. Rios Mayor/Chair Present
Scott Funk Mayor Pro Tem/Vice Chair Present
Liz Silva Council/Agency Member Present
Lorraine Worthy Council/Agency Member Present
Paul Miller Council/Agency Member Excused
ROLL CALL - Planning Commission
Attendee Name Title Status
Gloria Velasquez Chair Absent
Adrian Paco Commissioner Present
Ernesto Mancera Commissioner Present
Myrna Morales Commissioner Present
* Successor Agency Item

STAFF PRESENT
Interim City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas, Development Services Technician/Administrative Analyst Alejandra Flores, Administrative Assistant II Miranda Uribe, Public Works Director/City Engineer Patrick Dobbins, Fire Chief Jason Muscio, and Police Chief Keith Wise.

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Minutes Acceptance: Minutes of Aug 1, 2022 5:30 PM (CONSENT AGENDA) AGENDA
ITEM
7

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Mayor Rios informed he had a little accident and asked Mayor Pro Tem to run the meeting on his behalf.

Mayor Pro Tem Funk read the following:

PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/86277560285 or call 1-1669-900-6833 and use Meeting ID: 862 7756 0285. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

JOINT ITEM WITH THE PLANNING COMMISSION

2. Self-Introduction of the D.R. Horton Team and of their Interest in the D’Arrigo 138.4 Project Site, Formerly Known as Rincon Villages
Interim City Manager Gil gave a background about the plans D.R. Horton has for the community.

Adam Foster, D.R. Horton, introduced John Culligan.

John Culligan, D'Arrigo Brothers Company, said it's been a while since he has been in front of the Council. He thanked the Council, Planning Commission and staff for hosting this meeting and receive a short presentation. He elaborated on the parcel that has been annexed in the City over 10 years ago and the conversations he has had over the years with developers. He said they were very excited and believe they have the players here to make this happen.

Adam Foster and Avery Jones, D.R. Horton, thanked Interim City Manager Gil and Public Works Director/City Engineer Dobbins for their time. They introduced their company and presented information via powerpoint on the subject property of 130 acres on the east side of town, and explained the project objectives. They wanted to hear from the community and mentioned they can be reached after this presentation at 925-285-7990 or [email protected] and 925-332- 6737 or [email protected].

Council/Commission Discussion: General discussion took place and D.R. Horton answered questions.

Public Comments: Henry Martinez Sr. talked about D’Arrigo Brothers dropping the ball a few years ago and making them pay for a bond; wanted contracts and a guarantee if they pulled back again; trail ways inviting crimes; and parking situation.

Maria Orozco talked about being excited to see this housing project coming back after many years she heard while she was in the Council; encouraged having workshops for first time home buyers to get information to families on how they can qualify for homes and process; wanting an opportunity to have a first-time home buyer program to help families with financial assistance; and doing community outreach.

Henry Martinez Jr. talked about these homes being expensive; people from the bay pushing out local residents; and now not being the time to build.

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Minutes Acceptance: Minutes of Aug 1, 2022 5:30 PM (CONSENT AGENDA)

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Mike Rianda, owner of the property south of this development, welcomed the D.R. Horton group to town; envisioned this project for a long time; hoping it comes to fruition this time because we have to grow; and thanked the group for the information.

Mayor Rios told Mr. Rianda that as part of this project we may need access to La Gloria Road, and asked him if he would be willing to help with that.

Mr. Rianda responded that he already talked to them and they have all that worked out.

Rosa Rodriguez concurred with Mayor Rios about the traffic on Harold Parkway and talked about the need for another way to get out through Gloria Road; needing another public safety station; and wanted to see another shopping center and more amenities.

Interim City Manager Gil thanked D.R. Horton for coming out and said today was an introduction, they will begin to gather input, and the Council will be hearing more from them as work on the feasibility study. She mentioned there are plans to do community forums and other ways to engage the community to receive feedback.

No action required.

RESULT: MOTION TO ADJOURN JOINT MEETING AT 6:09PM
[UNANIMOUS]
MOVER: Myrna Morales, Commissioner
SECONDER: Ernesto Mancera, Commissioner
AYES: Adrian Paco, Myrna Morales, Ernesto Mancera
ABSENT: Gloria Velasquez

ADJOURN TO REGULAR COUNCIL MEETING
The City Council reconvened to the regular Council meeting at 6:17pm.

PRESENTATIONS

3. Introduction of New City Employees
Public Works Director/City Engineer Dobbins introduced Public Works Intern Leo Rosas and Administrative Assistant II Miranda Uribe.

Public Works Intern Leo Rosas and Administrative Assistant II Miranda Uribe told the Council a little bit about themselves, both graduates from Gonzales High School and Gonzales residents.

BUSINESS FROM THE PUBLIC

4. Business from the Public not on the Agenda; any member of the Public may address the Council for a period not to exceed three minutes on any subject not on the Agenda. The Council will listen to all communications, but may take no action.

Henry Martinez Sr., 112 Tenth Street, commented about his volunteering years at the school and the people that live in a labor camp outside of town.

Henry Martinez Jr., 114 Tenth Street, commented about his comments made in June regarding his volunteer time at the park and still not getting a phone call to thank him for what he has done.

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Minutes Acceptance: Minutes of Aug 1, 2022 5:30 PM (CONSENT AGENDA)

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Rosa Rodriguez, 307 Ayrshire Way, commented about her mom teaching her when she does something, you don't expect anything in return and you do it because you love your community and it comes from your heart.

CONSENT AGENDA

5. Approve the Joint City Council and Successor Agency - Regular Meeting - July 18, 2022 Minutes

6. Approve City Accounts Payable Warrants #47263-47405

7. Consider Approval of Resolution No. 2022-55, A Resolution of the City Council of the City of Gonzales
Calling and Providing for a General Municipal Election to be Held in the City of Gonzales on November 8, 2022, Making Determinations Required by Section 13307 of the Elections Code with Respect to Candidates’ Statements, Requesting the Monterey County Elections Department to Conduct and Consolidate the Election with the Statewide General Election and Authorizing the City Manager to Enter Into an Agreement with the Monterey County Registrar of Voters for Related Election Activities

8. Consider Approval of Resolution No. 2022-56, A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Consulting Agreement with MNS Engineers to Provide Construction Management and Inspection Services for a Not to Exceed Amount of $30,000 for the Slurry Seal Project
RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Council Member
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy EXCUSED: Paul Miller

REGULAR AGENDA

9. Presentation from City Staff with Updates on the Funding and Delivery of the Community Center Complex Project
Staff Report: Public Works Director Dobbins presented the staff report via powerpoint presentation explaining the funding, financing, capital campaign, design/build process, and schedule.

Public Comments: Henry Martinez Jr. questioned about the new bond on the next election and he was not convinced about this, and nothing was being done at the empty property.

Henry Martinez Sr. concurred with the Council Members comments and asked if the library would be separate. He suggested building the library first and talked about the old bank building.

Mayor Rios explained the different amenities shown on the map.

Rosa Rodriguez said she was sad to hear what she heard tonight because there was an announcement about the community center being completed sooner. She talked about it being pushed back more and seeing a lot of money being spent on consultants; encouraged partnerships with the County Health Department and D'Arrigo Company; and concurred with Council Member Worthy's comments.

Maria Orozco asked about the total amount for the community center not including the cost for the Packet Pg. 25
Minutes Acceptance: Minutes of Aug 1, 2022 5:30 PM (CONSENT AGENDA)

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stand alone gym.

Public Work Director Dobbins responded that was correct. The base project for the community center, library, teen innovation center and all the site improvements was $34.8 million, and the stand alone gym is an additional $8 million.

Maria Orozco shared a concern about the funds for the teen innovation center expiring if not used, and they have deadlines.

Council Discussion: General discussion took place.

The Council provided feedback to staff. No action required.

10. Consider Approval of Resolution No. 2022-58, A Resolution of the City Council of the City of Gonzales Submitting to the Voters at the General Municipal Election to be Consolidated with the Statewide General Election Held on Tuesday, November 8, 2022, a Measure Extending the Term of the City’s Transactions and Use Tax Through 2064 with Continued Use of Tax Revenue Annual Audits by an Independent Auditor and Community Review by Citizens’ Advisory Committees
Staff Report: City Attorney Rodriquez presented the staff report.

Public Comments: Henry Martinez Sr., 112 Tenth Street, commented about the time they voted for the school bonds; high price of groceries; people's pockets hurting; and asked for understanding with all the taxes they're already paying.

Henry Martinez Jr. commented about the City getting pennies for the several cars he bought.

Rosa Rodriguez, 307 Ayrshire Way, commented about not having a problem with these measures if the timeline didn't get extended; wanted to see something done; couldn't afford to add anything more; and Measure K being a great measure that has benefited the community.

Ms. Rodriquez asked a question after public comment was closed regarding assessments at the California Breeze Subdivision.

City Attorney Rodriquez clarified her question.

Council Discussion: General discussion took place.

RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Council Member
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy EXCUSED: Paul Miller

11. Consider Approval of Resolution No. 2022-57, A Resolution of the City Council of the City of Gonzales Adopting the 2022 Monterey County Multi-Jurisdictional Hazard Mitigation Plan Staff Report: Fire Chief Muscio presented the staff report.

Public Comments: Henry Martinez Sr., 112 Tenth Street, respected the Fire Chief's decision that this is a good plan and hoped the Council voted for it.

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Minutes Acceptance: Minutes of Aug 1, 2022 5:30 PM (CONSENT AGENDA)

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Rosa Rodriguez asked if the Fire Department belonged to the Office of Emergency Services.

Fire Chief Muscio responded to her question.

Council Discussion: General discussion took place.

RESULT: APPROVED [UNANIMOUS]
MOVER: Lorraine Worthy, Council Member
SECONDER: Liz Silva, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy EXCUSED: Paul Miller

BUSINESS FROM CITY COUNCIL

12. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
Mayor Rios reported TAMC was dark in July.
b. Mayor Selection Committee
Mayor Rios announced the next meeting this Friday.
c. Salinas Valley Recycles
Council Member Silva mentioned the board was dark in July and the next meeting is August 18th.
d. Measure K Oversight Committee
Council Member Worthy reported on last year's presentation of the community grants and reminded of the new grant process which is open now and application deadline is August 31st. e. Salinas Valley Basin Groundwater Sustainability
Public Works Director/City Engineer Dobbins announced the next meeting August 18th. f. City's 75th Anniversary Committee
Interim City Manager Gil announced the next meeting on August 3rd to continue planning of the rest of the year's activities, and save the date of October 15th which is a big culmination of the big 75th year celebration.

13. Oral Communications
Council Member Worthy thanked everyone who presented tonight and thanked staff for their hard work, as well as to the community for coming out and giving their opinions. She asked everyone to be careful as school is about to start.

Council Member Silva thanked all the volunteers and attendees at the California Rodeo Salinas where she worked two days as well as Maria worked there, and believed it was a great way to get back together and see old friends. She announced today was Swiss National Day and they will have their Swiss Picnic on Sunday, August 21st at the Swiss Riffle Club, starting at noon. She gave a shoutout to the Swiss immigrants and their families. She reminded everyone first day of school is August 11th so be very careful and safe out there. She also announced the car show at the Spartan Stadium this Saturday from 10am-2pm to support baseball.

Mayor Rios told staff he received a lot of positive comments about the summer camp program and his grandson loves the program as well. He likes all the things staff is doing to keep our youth engaged and he is really excited about the work the youth council will be doing this year. It is great to see the youth involved and the great things they are doing for the community.

Mayor Pro Tem Funk thanked the Public Works and Police Department for the coordination as the school year starts soon.

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Minutes Acceptance: Minutes of Aug 1, 2022 5:30 PM (CONSENT AGENDA)

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BUSINESS FROM CITY MANAGER

14. Oral Communications
Interim City Manager Gil asked folks to be safe as we go back to school. She reported on the rise of covid cases and encouraged those who feel symptoms to stay home to not expose others; GYC wrapping up the summer immersion and coming back to the Council at the next meeting to report on what they did and what they learned.

Public Works Director Dobbins reported on the status of the slurry seal project and well.

Police Chief Wise reminded everyone about the National Night Out event the Police Department is hosting in downtown from 6pm-8pm.

Fire Chief Muscio reminded everyone about the Blood Drive on August 13th at the Fire House from 10am-2pm.

ADJOURNMENT
The meeting was adjourned at 7:44 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 28
Minutes Acceptance: Minutes of Aug 1, 2022 5:30 PM (CONSENT AGENDA) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 2:12 pm
Date: 08/05/2022
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
AKEL ENGINEERING GROUP 4,392.50
INC.
47406 08/05/22 Printed 4274 Contract Services
47407 08/05/22 Printed 1410 DEPARTMENT OF JUSTICE LiveScans 928.00 47408 08/05/22 Printed 3466 ECMS, INC. Uniform Alteration 202.54 47409 08/05/22 Printed 3839 CARMEN GIL Reimb. - Rene's Farewell Party & CHW 183.86 Supplies
GONZALES ACE HARDWARE 223.16
INC.
47410 08/05/22 Printed 3274 Misc. Maint. Supplies
47411 08/05/22 Printed 1744 GREEN'S ACCOUNTING June Financial Services 14,303.97 47412 08/05/22 Printed 72 MISSION UNIFORM SERVICE Uniforms 3.00 47413 08/05/22 Printed 3787 NEW SV MEDIA Public Notice 427.50 47414 08/05/22 Printed 3593 OUTLET CLEANERS INC. Turnout Cleaning 52.60 47415 08/05/22 Printed 4020 PKS PROPERTIES Fleet Wash - Patrol Cars 180.00 47416 08/05/22 Printed 2685 SC FUELS Fuel 738.86
47417 08/05/22 Printed SWINERTON SWINERTON BUILDERS Community Center PM Services 66,161.81 TRI-COUNTY FIRE 600.00

PROTECTION, IN
47418 08/05/22 Printed 142 Fire Sprinkler Inspection
47419 08/05/22 Printed 3577 U.S. BANK 7/6/22 Carmen Gil Acct # 4866 9145 6,262.71 5550 8537
47420 08/05/22 Printed 3577 U.S. BANK 7/6/22 Jason Muscio Acct # 4866 9145 1,107.15 5550 8537
47421 08/05/22 Printed 3577 U.S. BANK 7/6/22 City of Gonzales Acct # 4866 9145 5,498.39 5550 8537
WEST VALLEY 26,835.00

CONSTRUCTION CO
47422 08/05/22 Printed 476 Emergency Sewer Repair 6/1/22 Total Checks: 17 Checks Total (excluding void checks): 128,101.05 Total Payments: 17 Bank Total (excluding void checks): 128,101.05 Total Payments: 17 Grand Total (excluding void checks): 128,101.05 AGENDA
ITEM
Packet Pg. 29
Attachment: Warrants #47406-47461 (2512 : Approve City Accounts Payable Warrants #47406-47461) 8 City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 2:20 pm
Date: 08/05/2022
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
47423 08/05/22 Printed 3331 2NDNATURE, LLC Stormwater Permit Software 7/1/22 - 5,654.70 6/30/23
ABAG PUBLICLY OWNED 2,330.00
ENERGY
47424 08/05/22 Printed 256 Levelized Gas Charges
ALVAREZ TECHNOLOGY 3,191.05
GROUP, INC.
47425 08/05/22 Printed 3893 Adobe Pro Licenses
47426 08/05/22 Printed 3797 AQUAFIX, INC. Grease Cutter 252.06 ARMANASCO PUBLIC 14,158.30

RELATIONS,
47427 08/05/22 Printed 3284 PR Support Services
47428 08/05/22 Printed 3033 ASAP SIGNS & PRINTING Name Plates 66.86 47429 08/05/22 Printed 86 AT&T Telephone Charges 6/19/22 - 7/18/22 1,445.21 47430 08/05/22 Printed 3168 AUTOZONE INC. Crane Repair 132.91 BANUELOS ENTERPRISES, 60.00
INC.
47431 08/05/22 Printed 1054 Vehicle Maintenance
47432 08/05/22 Printed 4220 RAY-ANTHONY BLANCO Youth Flag Football Referee 90.00 47433 08/05/22 Printed 3983 CAL COAST ELECTRIC, INC. Grit Repair 11,668.10 47434 08/05/22 Printed 4119 CANNON CORPORATION GIS Support Services 223.00 47435 08/05/22 Printed 770 CARLOS ALBERTO ESQUIVEL Janitorial Services & Supplies 1,600.00 CASNER EXTERMINATING, 260.00
INC.
47436 08/05/22 Printed 889 Extermination Services
CYPRESS COAST FORD 68.26

LINCOLN
47437 08/05/22 Printed 4063 Vehicle Maint. - PW#1
FERGUSON ENTERPRISES, 233.21
INC 1423
47438 08/05/22 Printed 593 Meter Boxes
47439 08/05/22 Printed 3650 GHD INC. Vista Lucia Peer Review 354.00 GONZALES ACE HARDWARE 108.28
INC.
47440 08/05/22 Printed 3274 Sanitary Tee
47441 08/05/22 Printed 4071 GREAT AMERICA FINANCIAL Copier Lease 1,323.89 47442 08/05/22 Printed 204 LN CURTIS & SONS Wildland Supplies 1,302.15 47443 08/05/22 Printed 3280 JESSE LOPEZ Adult Co-Ed Softball Umpire 960.00 47444 08/05/22 Printed 2396 MANDEGO APPAREL City Polo Shirt 29.61 47445 08/05/22 Void 08/05/22 Void Check 0.00
47446 08/05/22 Printed 72 MISSION UNIFORM SERVICE City Hall Mats 703.95 47447 08/05/22 Printed 3270 ISABEL NAVARRO Home Run Derby Summer Adult Co-Ed 183.54 League
47448 08/05/22 Printed 3787 NEW SV MEDIA Public Notice 612.50 47449 08/05/22 Printed 3593 OUTLET CLEANERS INC. Turnout Cleaning 109.00 47450 08/05/22 Printed 91 P. G. & E. Utilities 2,416.58 47451 08/05/22 Printed 1021 PURCHASE POWER Postage Machine Fees 31.38 47452 08/05/22 Printed 2878 RAFA'S AUTO BODY Paint Repair for Unit # 7 850.00 47453 08/05/22 Printed 3098 SAFARILAND, LLC Testing for Drugs 69.08 47454 08/05/22 Printed 2685 SC FUELS Fuel 267.70
47455 08/05/22 Printed 1857 SUMMIT UNIFORM CORP. Metal Name Tag 3,769.06 47456 08/05/22 Printed 3880 THE MAYNARD GROUP Video Conferencing 260.30 TRANS UNION RISK AND 124.20

ALTERNATI
47457 08/05/22 Printed 3175 TLO
VALLEY SAW & GARDEN 509.98

EQUIPMENT
47458 08/05/22 Printed 174 Equipment Repair
47459 08/05/22 Printed 3619 JAIME VASQUEZ Reimb. Certification Renewal Drinking 180.00 Water Dist. Operator
47460 08/05/22 Printed 99 VOSTI'S, INC. Vehicle Maint. Supplies 1,241.71 47461 08/05/22 Printed 2919 WAGEWORKS FSA Compliance 100.00 Total Checks: 39 Checks Total (excluding void checks): 56,940.57 Total Payments: 39 Bank Total (excluding void checks): 56,940.57 Total Payments: 39 Grand Total (excluding void checks): 56,940.57 Packet Pg. 30
Attachment: Warrants #47406-47461 (2512 : Approve City Accounts Payable Warrants #47406-47461) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Community Development Activity Report - July 2022

1. BUILDING DIVISION ACTIVITY
From the period July 5, through August 8, 2022, the city issued seven permits from the Building Division for two residential reroofing, two solar installations, a porch overhang, and demolition of a detached garage. The estimated valuation of all improvements was $57,795.65.

2. GENERAL PLAN IMPLEMENTATION
City staff continues to work with Pembrook Development Group and Jackson Family Investments on SOI Sphere of Influence Development project(s).

Also in the sphere of influence, outside of City Limits, staff continues to work with the Rianda Family Trust proposal for an agricultural cooler on Gloria Road. A traffic study has just been submitted for evaluation Friday August 5, 2022, and staff will be meeting with Mr. Rianda Tuesday, August 9, 2022.

City staff received two responses from our “Request For Proposals For The Sixth Cycle Housing Element Update Planning Period 2023-2031.” At the time of writing this report, Tuesday, August 9, staff is evaluating the two submittals and will soon report. Standard practice would have staff refine the final scope of work and costs and then make a recommendation to the Council for selection of an appropriate firm (September 6, 2022). From that point we finalize AGENDA
ITEM
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contracts, issue a Notice to Proceed to the selected firm and then get underway with a kick-off meeting.

Accompanying the state requirement for the City to update its Housing Element comes the need for the City to pay for such an endeavor. Staff is staying abreast of state funding and grant opportunities for the City and is participating with our local Council of Government, AMBAG in expressing our needs to secure regional financial resources (REAP 1 and REAP 2). The Housing Element effort may require as much as $500,000.

3. POLICY DEVELOPMENT
Targeting a September 12, 2022 workshop and recommendation to the Planning Commission, staff will be presenting an Agricultural Mitigation Ordinance and a VMT Vehicle Miles Travelled Policy. Follow any edits or revisions suggested by the Planning Commission, Staff will plan to present to the City Council for action on the October 3, 2022 regular meeting.

4. APPROVED COMMERCIAL PROJECTS AND THEIR STATUS
• New laundromat under construction at 28 Fourth Street. • Salad Bowl Boxing at 32B Fourth Street, operational and active. • Construction plans being revised for the new 18-room hotel at 34 & 51 Fourth Street. o This Project has stalled out on the applicant’s side.

5. OTHER COMMUNITY DEVELOPMENT DEPARTMENT ACTIVITIES
For the D’Arrigo Property in the city limits, staff met on-line July 7, 2022 with the advance planning team of D.R. Horton. On August 1, 2022, D.R. Horton introduced their team to a Joint Session of the City Council and Planning Commission. Staff will continue to assist and facilitate community outreach efforts as the developer gives shape to the eventual new subdivision submittal. Once prepared by the applicant, the development proposal will be accompanied by General Plan Amendment requests to move or shift land use designations on the General Plan Land Use Map differing from the former “Rincon” proposal. Staff is expecting a 700+ unit multidensity residential development proposal with school sites, public facilities and open spaces incorporated.

Staff is also looking forward to a stronger relationship with the City of Gonzales Chamber of Commerce, and the Director of Community Development remains available to discuss partnerships and cooperative efforts in supporting our local business community.

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City of Gonzales

CITY MANAGER DEPARTMENT

ACTIVITY REPORT
TO:

DATE:

Honorable Mayor Rios and City Council
August 15, 2022
FROM: Carmen Gil, Interim City Manager
SUBJECT: Community Engagement & Strategic Partnerships Activity Report Gonzales Youth Council

1. Five Gonzales Youth Council members went through a summer intensive program this summer. They spent three weeks learning and refining their professional skills, connecting with the various city departments and taking on small projects. This strategy was deployed to help identify and prepare the next Youth Commissioners and to further develop a shared leadership model for our Youth Council.

2. Each of the participating youth will receive a small stipend for their hard work and dedication and will now be tasked with helping to recruit the rest of their GYC members for the coming year and continue moving forward their identified projects, which this year include mental health, the Teen Innovation Center/Community Center and pedestrian safety.

3. This year’s summer program differed from others in the sense that it was a bit more intense, hands on and it was also led by Cindy Aguilar and supported by Magaly Santos, both former Youth Commissioners currently attending UC Berkely. This peer-leader approach is something we have been wanting to implement for a few years and this summer it worked out perfectly as Magaly Santos was a City Intern and Cindy was Working for our Consultant at C4 Consulting. This strategy allowed us to deploy a more formal connection between the current Youth Council members and Commissioners and former ones so that they can learn from the former commissioners, and the former commissioners can continue to enhance their leadership and management skills by helping to lead the program. The city also benefits greatly from this by bringing back some of our human capital whom we have invested in and helped develop by supporting their growth through the Youth Council.

4. The two Youth Commissioners for year 22/23 have also now been identified and will be introduced for formal appointment at the council meeting set for August 15, 2022.

AGENDA
ITEM
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GYCers Meeting with Interim City Manager Gil GYCers Meeting with CSUMB Partners and Dr. Lovell GYCers Learning About Public Works Department Gonzales Cares Rental Assistance

1. The Gonzales Cares rental assistance program has a bit of funding left. On July 20th the city was visited for an audit by our partners at United Way. They wanted to ensure that everything for the program was on file and that we are meeting all grant requirements. All went well and the audit was a success.

2. We are now working off of a list to get the rest of the limited funds out to those who have been waiting.

Community Health Workers (CHWs)

1. In July the Community Health Workers stayed busy. They participated in different aspects of the July 4 th celebration. Some supported the parade and created a VIDA float that was the talk of the county VIDA program. Others helped support the actual event at the park where they handed out 100 information packets and COVID-19 tests.

2. They have also been helping to complete Medi-Cal applications and have been recognized by the County program managers as the team with the most completed applications. They are now offering this service as part of their testing days, which continue to be Monday, Tuesday, Wednesday and Packet Pg. 34
Friday at the Technology portable near the joint-use gym.

3. They also helped test a group of 40 kids who were going to camp in the Santa Cruz Mountains with the Salvation Army. Luckily no one tested positive, and the kids were able to enjoy their time at camp.

4. COVID-19 testing continued to increase during the month of July. They conducted 235 tests during the month and unfortunately did see quite a few positives. They also continue to support the pharmacy with vaccines. In July they helped to get 29 people vaccinated.

5. On July 26th some of the CHWs also supported the Blue Zones Cooking Class that took place at La Gloria Elementary School. There were about 20 parents that participated, and students were eager to get involved. Brighter Bites also distributed food boxes to the participants that day. It was an excellent collaboration.

6. The CHWs are now working to advertise the Blood Drive that will be held on August 13th at the fire house. Some of them will be there to support the Fire Department and continue to provide resources and information regarding COVID-19 and other services.

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City of Gonzales

FIRE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Fire Department Activity Report

RESPONSES
There were 82 calls for service for the month of July with a year to date total of 444 calls. The majority of calls were EMS related; however we did also respond to two structure fires within the City, and three vegetation fires in the Rural Fire District. The most significant incident was a structure fire that occurred on July 4th. The fire was caused by illegal fireworks and resulted in a total loss of a single family home on 8th street.

STAFFING
Firefighter Steven Halcon was hired to fill the vacancy left by the departure of firefighter Alejandro Quiroz. Firefighter Halcon is currently assigned to A shift with Lieutenant Monares and is working his way through his probationary period. All full time positions are filled, we have several openings for volunteer firefighters but no qualified applicants at this time. There are currently two active volunteer firefighters on our roster.

TRAINING
Training was conducted at the shift level with drills focusing on wildland firefighting and scene safety.

Auto extrication drills are scheduled for the month of August.

EQUIPMENT
All apparatus remains in service without the need for significant repairs. A heavy duty washing machine extractor was purchased and installed in the firehouse for cleaning our firefighting bunker gear. A flammable liquid storage cabinet was also purchased and installed for the safe storage of our fuel and oil.

AGENDA
ITEM
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PREVENTION
Business and residential rental inspections continue to be conducted on a regular basis. A short fire safety presentation was provided to some local students at the fire station.

GRANTS
Grant opportunities continue to be explored with the assistance of California Strategies.

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City of Gonzales

POLICE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: July 2022 Activity Report
Crime and Arrests
The Gonzales Police Department investigated 12 Part I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of July 2022. During the same time last year, there were 15 Part I Crimes investigated.

During the month of July 2022, Officers made 15 arrests. During the same time last year, there were a total of 16 arrests.

Calls for Service
The Department responded to 645 calls for service in July 2022. There were 80 crime, accident, and information reports taken during the month.

Animal Control
During the month of July 2022, the Animal Control Officer (ACO) provided the following services:

Animal
Control
Trapped/Stray Dead Injured Bite Cases Returned to
Owner
Transported
to the SPCA
Cats 0 0 0 0 0 0
Dogs 2 0 0 1 0 2
Total = 2 0 0 1 0 2
Significant Cases
AGENDA
ITEM
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Although the Police Department responded to 645 calls for service during the month of July 2022, the most significant cases involved 12 Part I crimes. 0 - Rape, 1 -Robbery, 4 -Assault, 1 -Burglary, 4 - Larcenies, and 2 -Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

Other
On July 4th Officers were a part of the City’s annual Fourth of July celebration at the Central Park.

The La Gloria Second grade class received a tour of the Police Department on July 7, 2022.

On July 13, I attended a TAMC Walking School Bus meeting.

On July 18, Officer Taylor Rivas was sworn in by me at the Police Department.

On July 19, I met with the Gonzales Youth Council as a part of the Immersions with City Leaders.

Throughout the month of July, Department staff worked on the planning of National Night Out.

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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Public Works Activity Report - July 2022

BUILDINGS

1. Community Center Complex Project – Group 4 Architects completed the “Design Criteria” documents in April 2022. The Design Criteria package is comprised of 98 drawings, a Program Summary and Systems Criteria Narratives, and Technical Specifications. These materials will be used in the Request for Proposals to the three shortlisted Design/Build teams. At the 5/31/2022 Council Meeting, a Special Mailed Ballot Election was approved for voters to consider increasing the City’s Transactions and Use Tax (Measure D) on 8/30/2022. At the 8/01/2022 Council meeting, staff provided a progress report on the project.

2. Emergency Generator Replacements – The city received a $150,000 grant from Cal OES in 2021 to replace the emergency generators at City Hall and the Police Station. At the 2/07/2022 City Council meeting, a $175,000 contract with Alltech Services (low bidder) was approved. The generator at the Calif Breeze Sewer Lift Station will also be replaced under this contract but will be funded with Sewer Impact monies. The contract has been executed, a kick-off meeting held on 3/02/2022 and the generators were ordered on 3/07/2022. The two 25KW generators (one for city hall and one for the Calif Breeze Sewer Lift Station) have an expected ship date of 8/09/2022 and the 80KW generator for the police station has an expected ship date of 10/02/2022.

WASTEWATER
Industrial Wastewater (IW) System/Reclamation Plant – Dudek is wrapping up the final design for the IW Conveyance and Treatment Facility contracts. Staff and the city surveyor are finalizing the temporary and permanent easements needed for the project. On 5/03/2022 and 5/25/2022 city staff met with staff with the State Water Resources Control Board and discussed status of their review of the city’s State Revolving Fund loan application.

AGENDA
ITEM
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WATER

1. Well 7 – In mid-July, staff began manually operating the well under our permit from the State Drinking Water Division while completing the electronic and remote controls.

2. Alpine Court Water/Sewer Service – Grant agreements with the State Water Resource Control Board (SWRCB) to fund the preliminary and final design of extending water and sewer service from Gonzales River Road to Alpine Camp were approved at the 7/06/20 City Council meeting. On 12/14/2021 Schaaf & Wheeler submitted the 60% plans, specifications, and cost estimate for review.

Staff is holding bi-weekly progress meeting with SWRCB staff. Staff prepared a draft agreement with the property owner and the City Attorney is reviewing it.

ROADWAYS

1. Slurry Seal Contract – Staff issued this project for bid on 5/16/2022, bids were opened on 6/09/2022 and the award of contract to VSS International was made at the 6/20/2022 Council Meeting. A Preconstruction Meeting was held on 7/27/2022 and the field work is expected to begin on 8/29/2022.

2. Gonzales River Road Bridge Rehabilitation (Monterey County) – On 12/03/2021 Staff issued a letter of comments to County staff on the draft Initial Study/Mitigated Neg Dec for County consideration.

Staff requested a meeting with County staff and the Consultant Design Manager to discuss our concerns with the 18-month closure of the bridge while construction takes place.

PARKS

1. Skate Park Improvements – Phase two of improvements to the skate park will be funded by the 2018 Parks Bond Act. On 3/03/2022 staff received the executed grant agreement with the State Department of Parks and Recreation. American Ramp Company provided a revised scope and cost for the improvements due to an increase in costs over the last year.

2. Canyon Creek Park Phase 2 – Staff is working with one of the city’s on-call engineering consultants on a scope of work for the design of Phase 2 of Canyon Creek Park. A contract for this work is expected to be presented at the 9/06/2022 Council meeting.

3. Centennial Park – Staff worked with city’s recreation staff on the special event permit for the circus to use Centennial Park from 8/09/2022 through 8/15/202.

SOLID WASTE

1. Patrick Dobbins and Maury Treleven performed a “windshield survey” of solid waste containers and dumpsters at multi-family residential complexes, commercial businesses, and industrial facilities on 8/08/2022. They were primarily looking for overfilled containers and dumpsters, illegal dumping, and adequate food waste collection.

2. California Department of Resources Recycling and Recovery (“Cal Recycle”) Coordination – Our annual meeting with staff from Cal Recycle, Salinas Valley Solid Waste Agency, Tri-Cities Disposal & Recycling, and the cities of Greenfield, Soledad and Gonzales was held on 8/02/2022. Agenda items included compliance with:
o SB1383 Organic Waste Collection services to all residents and businesses o AB341 Commercial Recycling Program
o AB1826 Commercial Organics Recycling
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3. Quarterly Tri-Cities Franchise Agreements Meetings – Staff from the Salinas Valley Solid Waste Authority, Tri-Cities Disposal & Recycling and the cities of Gonzales, Soledad, and Greenfield meet on a quarterly basis to discuss the various waste collection programs (commercial accounts, food waste, organic waste), compliance with latest state regulations, public outreach and education, customer surveys, etc.). Most recent meeting was 8/10/2022.

DEVELOPMENT PROJECTS

1. Vista Lucia Development (City’s Sphere of Influence - East of US 101) a. City staff reviewed the Admin Draft #1 and Admin Draft #2 of the SEIR and provided comments to the Community Development Director.
b. City staff is holding bi-weekly Zoom meetings with Pembrook Development and their consultants.
c. Psomas developed a capital program of improvements to convey sewage from the SOI to the City WWTP for treatment and provided the draft technical memo in Mid-November for staff’s review.

Final Technical Memorandum was submitted in April 2022. d. Staff and our on-call traffic engineer meet with Caltrans District 5 staff on 6/10/2021 to discuss the process of a Project Study Report/Project Development Support (PSR-PDS). Staff will issue a Request for Proposals to engage a transportation engineer to prepare the PSR-PDS documents. e. On 3/28/2022 Staff met with Monterey County PW staff and discussed the applicant’s preliminary offsite roadway design. Staff sent follow-up emails to County staff on 5/05/2022 and 6/14/2022 and have not received a response.

2. Puente Del Monte Development (City’s Sphere of Influence - East of US 101) – The applicant submitted a revised Specific Plan on 4/05/2022 for city’s review.

3. Rianda Cooler Development Project (Gloria Road) – The applicant’s design consultant is preparing a Project Description for the project CEQA document. Staff is coordinating with the applicant’s site civil engineer and water/wastewater consultant on the initial design and layout.

4. In June 2022, DR Horton executed an agreement with D'Arrigo Bros to look at the feasibility of developing the 130 acre parcel in the city. A kick-off meeting with DR Horton and city staff was held on 7/07/2022 and DR Horton made a presentation at the Joint Planning Commission/City Council meeting on 8/01/2022.

OTHER PROJECTS

1. Assessment Districts – Harris Associates prepared the Engineer Reports for the FY2022/23 Assessment Districts and the public hearing is scheduled for the 6/20/2022 Council Meeting. The Assessment Rolls will be forwarded to the County Assessor by 8/04/2022.

2. GIS – City staff continues to work on a GIS mapping system by inputting field data for water, sewer, and storm drainage systems. Our water and wastewater consultants are using the GIS to develop capital improvement projects to serve the proposed development projects in the SOI. We hold monthly coordination meetings with a GIS Consultant.

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3. FEMA Flood Map Updates – Over the two years, FEMA and their consultants have been remapping seven watersheds in the Gabilan Mountains in the vicinity of South Salinas, Chualar, Gonzales and Soledad to update their Flood Maps. Preliminary flood insurance maps were released for public review on 10/21/2021. At the 12/06/2021 City Council Meeting, City staff made a presentation on this effort along with a letter to be sent to FEMA with our comments and questions on their mapping effort. A 90-day appeal period began on 5/12/2022 and we emailed our comment letter to FEMA staff on 7/26/2022.

4. Microgrid Project – Staff has been coordinating with Concentric Power and Sage Energy/NV5 (Program Manager) on various elements of the project. Staff participates in biweekly coordination meetings. A progress meeting with staff from Concentric Power, Sage Energy/NV5 and the Electric Authority’s legal counsel was held on 8/11/2022

PUBLIC WORKS OPERATIONS AND MAINTENANCE

WASTEWATER
Staff continues to take daily reads, inspections, and tests. Staff continues to monitor the discharge from the major industrial users.

Staff has been cleaning sewer lines and manholes. Staff discs and rips discharge fields regularly.

Staff is working hard to control the squirrel population at the wastewater treatment plant ponds.

WATER
Staff monitor the four city wells and sampling stations around town.

Staff reads meters and investigate leaks and repair meters. Staff replaces the water meter registers as they fail. Staff is working on a water conservation program, including education of the public on drought conditions and things that can be done to help conserve.

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STORM WATER
Staff continues to perform inspections and testing. Staff trains regularly for illicit discharges.

Staff will begin preparing for the annual stormwater report, and participate in stormwater training in September
PARKS
Staff regularly mows and edges the parks. Staff has been working on maintenance needs at Meyer Park. Staff has been filling squirrel holes, replacing concrete, and trimming trees. Staff continues to replace and repair irrigation and sprinkler heads at Centennial field

GOVERNMENT BUILDING
Staff cleans the Vosti restrooms every morning. Staff also cleans the Council Chambers several times a week.

STREETS
Staff is getting ready for school to start and Traffic control to begin. Staff continues to fill potholes. Staff will begin a survey of city sidewalks. When the survey is complete, a list of sidewalks and street tree’s that need to be addressed will be created in order of priority. Staff will begin to repair/replace sections that are hazardous.

The city’s street paint rig is down, we hired a company to stripe the crosswalks and stop bars in front of the schools in time for school to begin.

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TRAINING
Staff attended the Forklift training held on 7/28/2022 with the other south county cities.

Upcoming trainings are pump repair, arc flash and stormwater preparedness.

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City of Gonzales

PARKS & RECREATIONDEPARTMENT

ACTIVITY REPORT
TO:

DATE:

Honorable Mayor Rios and City Council
August 15, 2022
FROM: Carmen Gil, Interim City Manager
SUBJECT: Recreation Department Activity Report
Current Activities

1. City of Gonzales Youth Flag football league collaborated with South County to compete in a South County youth Flag Football Tournament on July 9th, 2022. We had 4 teams compete in the tournament. Two teams in the 10U division and 2 teams in the 13U division. Our Very own “Gonzales Heat” Team 13U division, coached by Isabel Navarro and Justin Tavarez, took home the Championship for the 13U division. It was a fun and interesting experience for our participants and parents.

2. City of Gonzales youth soccer and all girls flag football Powderpuff league registration has begun.

Registration started online on July 11th and is currently open.

3. Adult and Youth Summer Open gym ended on July 21st. Adult open gym was very popular. It was our first summer offering Youth Open gym. Participation was minimal. Next year we will work to encourage more youth to attend. We are planning on extending the adult open gym program come Fall.

4. Our Recreation Flag football league ended on July 22nd. We had a successful season with the number of participants we had registered. We were fortunate to have Soledad 8U division come to our town and play our little ones. Three of Soledad’s 8U teams came on a different Saturday to scrimmage our team.

5. Our Adult Summer Slow Pitch Softball co-ed regular season ended on July 26th. With the two divisions we had we were able to have two Championship games, one lower bracket and one higher bracket. Championship games were on Thursday, July 28th. Unfortunately, one of the teams for the higher bracket had to forfeit the day of, leaving the other team to win by forfeit. Our lower bracket AGENDA
ITEM
14 Packet Pg. 46
teams competed in the Championship and played an awesome game. The visiting team, Sandlot Ballers, was down most of the game and in the last inning they tied the game up 11-11. The Home team, Tuff-E-Nuff was given their last at bat at took it HOME. Tuff-E-Nuff won 12-11. Our two Champions for the 2022 Adult co-ed Softball League Season are, “Can’t Hit a Pitch” and “Tuff-ENuff”.

6. City of Gonzales collaborated with our city adult league umpire Jesse Lopez (aka Yogi) and created our 1st Annual Home Run Derby. It was a fun way to end the adult softball league season. The Derby took place on Wednesday, July 27, 2022. We had 22 participants. Two participants from each team.

It was a very fun and exciting night. We had two contestants who went on to the Championship round, Isaac Lopez, and Fidel Gudino Jr. Each hit 9 Home runs in the Championship round. A tie breaker round had to be played. Fidel Gudino Jr. came out on top out hitting his opponent 2-1. The contestants both won a Dicks Sporting Good Gift Card Sponsored by Just Cookies. 1st place $100 and 2nd place $50. We finished the evening with some yummy hotdogs and hamburgers. We are looking forward to having the derby again next year as we will have a male and female derby.

7. We have successfully continued with the Aquatics programming with Beginner Swim Lessons being the most popular / asked about program. There are a total of 4 Swim Lesson Sessions scheduled, with the last one starting on July 26th and ending August 5th.

8. The City of Gonzales collaborated with the School District to provide Summer School with a morning slot at the Community Pool. Their session will run for about 3 weeks starting July 12 and we will accommodate about 100 students.

Summer camp was also a hit this year. Kids were excited to be with their friends again and get to engage in fun-filled activities. The program had 80 participants during the summer with every week being a different activity/theme. The students got to learn while they played and got their exercise in everyday at the pool and by walking to the park. Parents, as always, were very happy with the experience and continuously echoed how much their child(ren) enjoyed the program.

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City of Gonzales

FINANCE DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-60

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2022-60, A Resolution of the City Council of the City of Gonzales authorizing the establishment and maintenance of bank accounts for municipal funds and repealing resolutions in conflict herewith.

BACKGROUND
The City of Gonzales, currently has municipal fund accounts with Mechanics Bank, both Checking and Money Market, in addition to The Local Agency Investment Fund (LAIF). These are funds used for the day-to-day operations of the City.

It is important that the City maintain current those authorized to maintain and transfer funds for the payment of City expenditures and payroll. As a result of the upcoming changes in city management, it has become necessary to update those officers authorized to maintain, deposit, and transfer funds on behalf of the City’s municipal bank accounts and investment accounts.

REVIEW AND ANALYSIS
As a result of the upcoming changes in city management, it is important to update signature authority related to the City’s municipal bank accounts and investment accounts.

Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.

AGENDA
ITEM
15 Packet Pg. 48
Explain: It is important that the City maintain normal operations with appropriate signature authority. This is important because it is necessary to keep a close watch on the resources needed to carryout the Mission.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes ____ No ____NA
• Housing X Yes ____ No ____NA
• Recreation X Yes ____ No ____NA
• Environment X Yes ____ No ____NA
• Education X Yes ____ No ____NA
Explain: Please see explanation above.

ALTERNATIVES
• Adopt the proposed resolution.
• Do not adopt the resolution. However, failure to adopt the resolution may not enable the City to manage its municipal funds for day-to-day operations.
• Provide other direction to staff.

BUDGET IMPACT
There is no budget impact to the adoption of this resolution. By approving the proposed resolution, the City of Gonzales will be able to maintain normal city operations.

CONCLUSION
It is recommended that the City Council adopt Resolution No. 2022-60, A Resolution of the City Council of the City of Gonzales authorizing the establishment and maintenance of bank accounts for municipal funds and repealing resolutions in conflict herewith.

Attachments:

1. Resol 2022-60
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RESOLUTION NO. 2022-60

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING THE ESTABLISHMENT AND MAINTENANCE OF BANK

ACCOUNTS FOR MUNICIPAL FUNDS AND REPEALING RESOLUTIONS IN

CONFLICT HEREWITH
WHEREAS, a commercial checking account (General Checking) at Mechanics Bank, Gonzales, California, for the deposit of City revenues to be used by the City Treasurer, or designee to transfer funds to and from the various City accounts as necessary and proper for City operations; and
WHEREAS, a commercial money market account at Mechanics Bank, Gonzales, California, for the deposit of City revenues to be used by the City Treasurer, or designee to transfer funds to and from the various City accounts as necessary and proper for City operations; and
WHEREAS, all of the above Mechanics Bank accounts may be accessed and transfers made using Mechanics Bank “Online Business Banking” system.

NOW THEREFORE, BE IT RESOLVED, that the City Council does hereby stipulate that the proper officers of the City of Gonzales are and are hereby authorized for and in behalf of said City to establish and maintain the above referenced accounts and to provide for deposits to and withdraws from said accounts as follows: all withdrawals from said deposit and payroll accounts to be made by checks or withdrawal slips signed by any two (2) of the following Mayor Jose L. Rios, Interim City Manager Carmen Gil, Public Works Director, Patrick Dobbins, or Finance Director Mike Howard per the current signature card on file at said Bank.

BE IT FURTHER RESOLVED, that the City Council does hereby authorize Mayor Jose Rios, Interim City Manager Carmen Gil, Public Works Director Patrick Dobbins, and Finance Director Mike Howard, as per the current signature card on file at said Bank to access and make transfers in the above referenced accounts using Mechanics Bank “Online Business Banking” system.

BE IT FURTHER RESOLVED, that the City Council does hereby authorize Mayor Jose L. Rios, Interim City Manager Carmen Gil, Public Works Director Patrick Dobbins, and Finance Director Mike Howard, to access utility payments to record utility payments to customer accounts in the above referenced Checking Account using Mechanics Bank “Online Business Banking” system.

BE IT FURTHER RESOLVED, that the City Council does hereby authorize Mayor Jose L. Rios, Interim City Manager Carmen Gil, Public Works Director Patrick Dobbins, and Finance Director Mike Howard, as per the current signature card on file at said Bank to execute for and in behalf of said City any and all agreements required by the respective bank mentioned above, including those contained on standard forms of signature cards, in order to open, use, and maintain such bank accounts.

Packet Pg. 50
Attachment: Resol 2022-60 (2508 : Resolution No. 2022-60 Signing Authority Bank Accounts) BE IT FURTHER RESOLVED, that the City Council does hereby stipulate that all previous Resolutions which may be in conflict with this Resolution are hereby rescinded.

Jose L. Rios, Mayor Signature ___________________________ Carmen Gil, Interim City Manager Signature ___________________________ Patrick Dobbins, Public Works Director Signature ___________________________ Mike Howard, Finance Director Signature ___________________________ PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales held on the 15th day of August, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 51
Attachment: Resol 2022-60 (2508 : Resolution No. 2022-60 Signing Authority Bank Accounts) City of Gonzales

FINANCE DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-61 Signing Authority LAIF

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2022-61, A Resolution of the City Council of the City of Gonzales Authorizing Investment of Monies in the Local Agency Investment Fund.

BACKGROUND
The City of Gonzales’s, current investment policy allows the City to invest idle cash in the Local Agency Investment Fund (LAIF). The Local Agency Investment Fund is a voluntary program created by statute; began in 1977 as an investment alternative for California’s local governments and special districts. The program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer’s office investment staff at no additional cost to the taxpayer. Monies invested in LAIF earn interest which is paid on a quarterly basis.

REVIEW AND ANALYSIS
As a result of the upcoming changes in city management, it is important to update signature authority related to the City’s municipal bank accounts and investment accounts.

Explain: It is important that the City maintain normal operations with appropriate signature authority. This is important because it is necessary to keep a close watch on the resources needed to carryout the Mission.

AGENDA
ITEM
16 Packet Pg. 52
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes _____No _____ NA
Explain: Please see explanation above for the Vision.

ALTERNATIVES
• Adopt the proposed resolution
• Do not adopt the resolution. However, failure to adopt the resolution may not enable the City to manage its municipal funds for day-to-day operations
• Provide other direction to staff.

BUDGET IMPACT
There is no budget impact to the adoption of this resolution. By approving the proposed resolution, the City of Gonzales will be able to maintain normal city operations.

CONCLUSION
It is recommended that the City Council adopt Resolution No. 2022-61, A Resolution of the City Council of the City of Gonzales Authorizing Investment of Monies in the Local Agency Investment Fund.

Attachments:

1. Resol 2022-61
Packet Pg. 53
RESOLUTION NO. 2022-61

A RESOLUTION OF THE CITY OF GONZALES AUTHORIZING INVESTMENT

OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND
WHEREAS, Pursuant to Chapter 730 of the Statues of 1976, Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and
WHEREAS, the City Council of the City of Gonzales does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein in the best interests of the City of Gonzales.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Gonzales as follows:

Section 1. The City Council of the City of Gonzales hereby authorize the deposit and withdrawal of City of Gonzales monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, and verification by the State Treasurer’s Office of all banking information provided in that regard.

Section 2. The following City of Gonzales Officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund:

Carmen Gil, Interim City Manager
Patrick Dobbins, Public Works Director
Mike Howard, Finance Director
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting held this 15th day of August, 2022 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 54
Attachment: Resol 2022-61 (2509 : Resolution No. 2022-61 Signing Authority LAIF) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, Interim City Manager
SUBJECT: City Limit Signs

RECOMMENDATION
It is recommended that the Council receive a presentation on proposed new city limit signs and provide feedback to staff.

BACKGROUND
Staff is proposing to replace the city limit signs as several are faded and the one on Gonzales River Road was recently knocked down. The city limit signs would be installed at the following locations:

1. North Alta (just north of Tenth Street)

2. South Alta (just south of the cemetery)

3. Gonzales River Road (west of Puente Del Monte)

4. Northern end of Fanoe Road

5. Johnson Canyon Road (just east of Herold Parkway)

6. Gloria Road (1,500 feet east of US101)

REVIEW & ANALYSIS
According to Caltrans specifications, city limit signs are considered “guide” signs and therefore have white lettering on a green background.

Staff developed the attached layout for the new city limit signs which includes the new city logo. Staff is seeking comments and feedback from the City Council on the layout of the new city limit signs.

AGENDA
ITEM
17 Packet Pg. 55
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

Explain: Installing new city limit signs with the updated city logo will welcome motorists to the city.

City services will be delivered in a cost-effective, respectful and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain:

ALTERNATIVES
The City Council can direct staff to develop other options for new city limit signs.

BUDGET IMPACT
The cost for the new city limit signs is estimated to be approximately $2,400 and will be funded from the City Street Fund (Fund 130).

CONCLUSION
It is recommended that the Council receive a presentation on proposed new city limit signs and provide feedback to staff.

Packet Pg. 56
City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Carmen Gil, Community Engagement & Strat. Partnership Dir.

THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-62 in Support of Measure D

RECOMMENDATION
It is recommended that the City Council approve Resolution No. 2022-62, A Resolution of the City Council of the City of Gonzales in Support of City of Gonzales’ Measure D, a Measure Increasing the City’s Transactions and Use Tax (Sales Tax) by One-Half Percent (0.5%), Subject to Annual Audits by An Independent Auditor and a Citizens’ Oversight Committee and Exclusively Dedicated to the Gonzales Community Center Complex.

BACKGROUND
Residents of Gonzales have for years advocated for a community center of their own, where they could gather, grow, learn and play together and engage in art and cultural events. In November of 2020, the community passed Measure X, a general tax that would increase the Transaction and Use Tax (or “Sales Tax”) by one-half percent (0.5%) on retail transactions. This general tax would bring in upwards of $750,000 dollars annually that could be used to fund aspects of the Gonzales Community Center.

However, the cost of the Community Center is projected to be between $34.8 and $42.8 million dollars and in order to cover the cost we need other reliable financial sources to finance the project. On May 31st, 2022, the City Council adopted Resolution No. 2022-31 placing a question on the ballot at a special allmail election to be held on August 30, 2022, for voters to consider supporting for Measure D. Measure D would amend the Gonzales City Code and the provisions of the City’s Transaction and Use Tax (TUT) and would adopt an additional one-half percent (0.5%) TUT on retail transactions involving tangible personal property in the City for a term of forty (40) years extending to 2064. All funding would initially be used exclusively as security for financing the outstanding balance of the cost of the Gonzales Community Center, with any funds generated after complete funding of the Project being dedicated to street maintenance and repair.

AGENDA
ITEM
18 Packet Pg. 57

REVIEW AND ANALYSIS
If Measure D is passed by two-thirds (2/3) of the voters at the August 30th election additional funds to support the Center would be generated and the community will be closer to materializing their dream of having a local Community Center.

Therefore, the Gonzales City Council supports, by the attached Resolution, Measure D, an exclusive onehalf percent (0.5%) increase to the City’s TUT that would generate approximately an additional $750,000 to support the Gonzales Community Center.

Duties and Commitments
Measure D funds, if passed, would be collected by the California Department of Tax and Fee Administration and remitted to the City. Revenue will be subject to independent annual audits, annual public expenditure reports and oversight by the Transaction and Use Tax Advisory Committee. The Tax Advisory Committee will establish a sub-committee to ensure that all monies coming in from Measure D are applied to the Gonzales Community Center Project until fully funded, then funds would go towards roads and street repairs.

Explain: Funds from Measure D will allow staff and the City Council to continue moving the Community Center Project forward. It will provide additional funds to finance the project, making it more attainable for the community, and thus realizing a long-time Vision.

Explain: The attached Council Resolution in support of Measure D supports the City’s Mission and will contribute to improving the quality of life of local residents by providing them with additional learning opportunities, a place to gather safely, innovate, and explore art and culture.

City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.

Explain: Please see explanation above.

Packet Pg. 58

ALTERNATIVES
The Council could refrain from supporting Resolution 2022-62 in support of Measure D. However, this will result in a shortfall of funding for the Community Center that will have to be covered through a different source, thus elongating the Project’s projected completion timeline until the additional funding for financing the project is secured.

BUDGET IMPACT
There is no impact to the budget by supporting Resolution 2022-62.

CONCLUSION
It is recommended that the City Council approve Resolution No. 2022-62, A Resolution of the City Council of the City of Gonzales in Support of City of Gonzales’ Measure D, a Measure Increasing the City’s Transactions and Use Tax (Sales Tax) by One-Half Percent (0.5%), Subject to Annual Audits by An Independent Auditor and a Citizens’ Oversight Committee and Exclusively Dedicated to the Gonzales Community Center Complex.

Attachments:

1. Resol 2022-62
Packet Pg. 59

Page 1 of 2 ends

RESOLUTION NO. 2022-62

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES IN

SUPPORT OF MEASURE D, A MEASURE TO BE CONSIDERED AT A SPECIAL ALL-MAIL BALLOT ELECTION ON AUGUST 30, 2022, INCREASING THE CITY’S TRANSACTIONS AND USE TAX (SALES TAX) BY ONE-HALF PERCENT (0.5%),

WITH THE USE OF SUCH SPECIAL TAX FUNDS TO INITIALLY BE DEDICATED

EXCLUSIVELY TO THE GONZALES COMMUNITY CENTER COMPLEX PROJECT

AND THEREAFTER TO ROAD MAINTENANCE AND REPAIR, WITH THE USE OF

SUCH REVENUE TO BE SUBJECT TO ANNUAL AUDITS

BY AN INDEPENDENT AUDITOR
WHEREAS, after several years of planning and extensive public outreach and input, the City of Gonzales is pursuing the construction of a Community Center Complex Project (“Community Center Project”) which will include a public library, Teen Innovation Center, a fitness studio, stand-alone gymnasium, multi-use conference rooms, consulting and counseling rooms, commercial kitchen, a 3,500 square foot Community Hall to host fitness and recreation classes and competitive sports events and public and private functions, and extensive outdoor venues which include an exercise area, amphitheater with stage, and meet-and-greet lounge areas; and
WHEREAS, the Council, Staff and Community appear generally to be of the joint opinion that the Community Center Project, as planned, will provide a multitude of recreation, education and social activities for local and regional residents and will be of benefit to the health and the quality of life for City residents of all ages; and WHEREAS, the total cost estimate for the Community Center Project is $42.8 million dollars ($34.8 million dollars for the base project and an additional $8 million for the stand-alone gymnasium), and while the City has been and continues to be diligent in seeking and obtaining funding sources for the Project, including significant State and local grants and use of City Measure X tax funds, the City still faces a significant Project funding deficit; and WHEREAS, on May 31, 2022, the Gonzales City Council adopted Resolution No. 2022- 31 placing a question on a ballot at a special all-mail election to be held on August 30, 2022, for consideration by the voters of “Measure D- The Gonzales Community Center Temporary Tax Measure (“Measure D”),” that would amend the Gonzales City Code and the provisions of the City’s Transactions and Use Tax (“TUT”); and
WHEREAS, Measure D is a special tax, which if passed by two-thirds (2/3) of the voters at the August 30 all-mail election, would adopt a one-half percent (0.5%) TUT on retail transactions involving tangible personal property in the City for a term of forty (40) years, to 2064, which would initially be used exclusively as security for financing the outstanding balance of the cost of the Community Center Project, with any funds generated after complete funding of the Project being dedicated to street maintenance and repair; and Packet Pg. 60
Attachment: Resol 2022-62 (2510 : Resolution No. 2022-62 in Support of Measure D)

Page 2 of 2 ends

WHEREAS, the City’s current TUT is set at one percent (1.0%), and if Measure D is adopted would be increased to one and one-half percent (1.5%), with an estimate that the onehalf percent (0.5%) increase in the City’s TUT would generate an additional $750,000 in special taxes each year; and
WHEREAS, if Measure D is passed at the August 30, all mail ballot election the tax revenues would be collected by the California Department of Tax and Fee Administration and remitted to the City, kept in a separate account from the revenues generated by the existing general TUT, and would be subject to independent annual audits and annual public expenditure reports; and
WHEREAS, the Council sincerely believes that the adoption of Measure D will assist in supporting the City Council’s and Community’s desire to provide a much-needed Community Center and is in keeping with the City’s goal of maintaining a safe, clean, family-friendly community.

NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Gonzales as follows:

1. The City Council of the City of Gonzales, and each member hereof, does hereby support Measure D-The Gonzales Community Center Temporary Tax Measure.

2. The City Council urges the citizens of Gonzales to learn the facts concerning the City’s current fiscal condition and the plans and status of the Gonzales Community Center Complex Project in order to make a reasoned and educated decision concerning Measure D.

3. Notwithstanding this resolution of support, the Council is fully aware of the restrictions imposed on the use of City funds to support ballot measures and represents that no public funds have been or will be used to campaign for or against Measure D.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 15th day of August, 2022 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 61
Attachment: Resol 2022-62 (2510 : Resolution No. 2022-62 in Support of Measure D) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-58 Approving and Authorizing an Agreement Between Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and the City of Gonzales for Purchase and Sale of Real Property and Escrow Instructions for the Property Located at 498 S. Alta Street, Gonzales, Ca.

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2022-58, A Resolution of the City of Gonzales, approving and authorizing an Agreement Between Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and the City of Gonzales for Purchase and Sale of Real Property and Escrow Instructions for the property located at 498 S. Alta Street, Gonzales, Ca. (APN 020- 041-016).

BACKGROUND
On October 18, 2021 in Resolution 2021-40, the City Council of the City of Gonzales and Gonzales Successor Housing Agency approved and authorized the City Manager and Executive Director to move forward with the process to purchase property located at 498 S. Alta Street, Gonzales, CA (APN 020-041- 016). See the attached Resolution 2021-40 for additional background.

AGENDA
ITEM
19 Packet Pg. 62
Aerial View of 498 S. Alta Street Street Views of 498 S. Alta Street

REVIEW & ANALYSIS
The Agreement in the attached new resolution includes recitals for the purchase of the property by CHISPA and the terms and conditions for two development scenarios.

Option One: This scenario for development is dependent on additional federal funding to CHISPA, and is called the LIHTC Project, which would include 36 multifamily units with a target of 40% Senior Households (14 units).

Option Two: The second scenario would be the development of 15 single family homes, the SFH Project, of which 40 percent would be rented to Senior Households (6 units). The Agreement packet includes:
• The Resolution 2022-58 inclusive of:
o The Agreement for purchase and sale of real property, and ▪ Exhibit A – Legal Description
▪ Exhibit B – Grant Deed
▪ Exhibit C – Hazardous Materials (Definition)
▪ Exhibit D – Promissory Note
▪ Exhibit E – Deed of Trust
▪ Exhibit F1–Declaration (LIHTC Project) (36 multifamily unit option) ▪ Exhibit F2 – Declaration (SFH Project) (15 single family homes) Packet Pg. 63
How the Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

Explain: the acquisition of this property for Senior Housing, is consistent not only with the City’s Housing Element, but many of the policies in the General Plan which include, but are not limited to:
a) Encouraging infill housing development where feasible b) Maintaining and enhancing existing neighborhoods
c) Encouraging rental housing
Furthermore, in addition to meeting the City goal for additional rental housing, development of APN 020-041-016 for Senior Housing would help address recent State mandates recognizing the pressing need for the housing and emphasizing the need and responsibility of all cities to take action to meet housing demands.

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: The City of Gonzales directly exercised its leadership and financial resources to facilitate the purchase, acquisition, and transfer of this property for the purposes of constructing senior housing in the City, a much needed local commodity needed to allow seniors to live affordably and remain in the community, thereby enhancing their quality of life and their families’ too.

City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing X Yes No N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: See Vision explanation above.

ALTERNATIVES
Amend or modify staff recommendation.

Packet Pg. 64

BUDGET IMPACT
Drawing from a recital in the earlier City Council Resolution 2021- 40, this Agreement will be funded from the Gonzales Successor Agency – Housing and Community Development Housing Funds.

CONCLUSION
Staff recommends that the City Council adopt Resolution No. 2022-58, A Resolution of the City of Gonzales, approving and authorizing an Agreement Between Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and the City of Gonzales for Purchase and Sale of Real Property and Escrow Instructions for the property located at 498 S. Alta Street, Gonzales, Ca. (APN 020- 041-016).

Attachments:

1. Resolution No. 2021-40 JOINT CC & SHA Purchasing 498 Alta St Property

2. Resolution No. 2022-58 w/ Agreement
Packet Pg. 65

Page 1 of 3 ends

RESOLUTION NO. 2021-40

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AND GONZALES SUCCESSOR HOUSING AGENCY APPROVING AND

AUTHORIZING THE CITY MANAGER AND EXECUTIVE DIRECTOR
RENE L. MENDEZ TO MOVE FORWARD WITH THE PROCESS TO PURCHASE PROPERTY LOCATED AT 498 S. ALTA STREET, GONZALES, CA (APN 020-041-016) WHEREAS, the City of Gonzales General Plan and Housing Element identifies the need for additional housing of all types; and
WHEREAS, the Housing Element listed housing for seniors as one of the types of housing needed; and
WHEREAS, the City Council has consistently provided direction to staff to actively look for and pursue the development of housing opportunities; and WHEREAS, APN 020-041-016, located at 498 S. Alta Street, is within the City of Gonzales and is adjacent to multi-family housing; and
WHEREAS, the market value of the property came back at $440,000 pursuant to an appraisal dated May 26, 2021; and
WHEREAS, the current owners of APN 020-041-016 are willing to sell the property to the City of Gonzales for a negotiated price of $600,000, which is higher than the appraised value, but the City finds the purchase price justifiable and appropriate pursuant to the benefits findings below; and
WHEREAS, funding for the acquisitions will come from the Gonzales Successor Agency – Housing and Community Development Housing Funds; and WHEREAS, the City plans to partner with a non-profit housing developer to develop a senior housing project; and
WHEREAS, the City Council has determined that the property at APN 020-041-016 is needed for the development of much needed senior housing.

NOW THEREFORE BE IT HEREBY RESOLVED, by the City Council of the City of Gonzales and the Board of Directors of the Gonzales Successor Housing Agency that the purchase of the property at APN 020-041-016 is fully consistent with the approved City General Plan and Housing Element; and
BE IT FURTHER RESOLVED that the purchase price of $600,000, which is more than the appraised value of $440,000, will provide the City with significant benefits and therefore is appropriate and necessary pursuant to the following findings:

1. The City is currently experiencing a severe shortage of housing of all types and for all income ranges, including affordable Senior Housing;
Packet Pg. 66
Attachment: Resolution No. 2021-40 JOINT CC & SHA Purchasing 498 Alta St Property (2501 : Resolution No. 2022-58 Agreement with CHISPA

Page 2 of 3 ends

2. There has not been a multi-family housing project built since 2008 and no single-family housing projects since 2006;

3. The City currently only has one 20-unit senior complex, on C Street;

4. As identified in the adopted 2015-2023 Housing Element the City:
a) Has a much lower percentage of multifamily housing (19% of the total housing stock) when compared to the County of Monterey County (26% of total housing stock). This disparity widens even more when compared to the State. (Page IV-9) b) Maintains the lowest vacancy rate in Monterey County ranging from 1.7% to 4.2% over a period of 14 years (2000 – 2014), which is an indication of a tight housing market with few choices and high rents. (Page IV-14)
c) Has a significant overcrowding issue. 20% of all occupied dwelling units in Gonzales are estimated to be overcrowded, which is significantly higher than Monterey County and the State (12% and 8% respectively). This overcrowding is more pronounced in renter-occupied households at 30% when compared to owneroccupied households at 13%. (Page IV-15) d) Residents living in multi-family housing, characterized as low-income or extremely low-income suffer from a housing cost burden. In fact, nearly all (95%) spent more than 50% of their income toward housing cost (defined as a severe housing cost burden). (Pages IV 21-22)
e) The elderly, who comprise 6% of the City’s population when compared to the County’s 11%, are a special needs population that requires close access to public services such the post office, banks, city offices, etc., Unfortunately while the older portion of town (around downtown) does present these resources, this part of town is fully developed and opportunities for additional housing are severely limited at best, or non-existent. In addition, a portion of seniors are low income further restricting their ability to acquire housing in the few instances that it become available. (Pages IV 23-24)
f) Has reached full buildout within the existing City with the exception of a few parcels, which includes the property located at 498 S. Alta Street, Gonzales CA (APN 020-041-016).
g) Finally, acquisition of this property for Senior Housing would help further the goal to provide this type of housing.

BE IT FURTHER RESOLVED that the acquisition of this property for Senior Housing, is very consistent not only with the City’s Housing Element, but also many of the policies in the General Plan which include, but are not limited to:
a) Encouraging infill housing development where feasible; b) Maintaining and enhancing existing neighborhoods
c) Encouraging rental housing
Packet Pg. 67
Attachment: Resolution No. 2021-40 JOINT CC & SHA Purchasing 498 Alta St Property (2501 : Resolution No. 2022-58 Agreement with CHISPA

Page 3 of 3 ends

BE IT FURTHER RESOLVED that in addition to meeting the City goal for additional rental housing, development of APN 020-041-016 for Senior Housing would help address recent State mandates recognizing the pressing need for the housing and emphasizing the need and responsibility of all cities to take action to meet housing demands; and BE IT FURTHER RESOLVED that Pursuant to CEQA Guidelines Section 15378, mere acquisition of the 498 S. Alta Street Property (APN 020-041-016) is not a “project’ for purposes of California Environmental Quality Act (“CEQA”) analysis, and that even if the acquisition was deemed a project, it would be exempt from CEQA pursuant to Guidelines Section 15061(b)(3) since it can be seen with certainty that the acquisition itself creates and/or involves no possibility of a significant effect on the environment; and BE IT FURTHER RESOLVED that the City Council hereby authorizes City Manager Rene L. Mendez to purchase APN 020-041-016 for the sum of $600,000, retain a California licensed Real Estate Broker via the City Standard Agreement to represent the City of Gonzales in the Purchase and Acquisition of the property and prepare the property purchase agreement, and execute said agreement on behalf of the City of Gonzales upon final approval of form and content by the City Attorney; and
BE IT FURTHER RESOLVED that the City Council authorizes the use of the Community Development and Gonzales Successor Agency Housing funds to acquire the property; and
BE IT FURTHER RESOLVED that the City Council directs City Manager Rene L.

Mendez to develop an agreement with a non-profit housing developer for the development of Senior Housing Project on APN 020-041-016 and to bring said agreement back to the City/agency for consideration and approval.

PASSED AND ADOPTED by the City Council of the City of Gonzales and the Gonzales Successor Housing Agency at a regular meeting duly held on the 18th day of October 2021 by the following vote:

AYES: COUNCIL/BOARD MEMBERS: Mayor Pro Tem/Vice Chair Scott Funk, Liz Silva, Lorraine Worthy, Paul Miller, and
Mayor/Chair Jose L. Rios
NOES: COUNCIL/BOARD MEMBERS: None
ABSTAIN: COUNCIL/BOARD MEMBERS: None
ABSENT: COUNCIL/BOARD MEMBERS: None
Jose L. Rios, The Honorable Mayor/Chair
ATTEST:

Rene L. Mendez, City Manager/Executive Director
Packet Pg. 68
Attachment: Resolution No. 2021-40 JOINT CC & SHA Purchasing 498 Alta St Property (2501 : Resolution No. 2022-58 Agreement with CHISPA

Page 1 of 3 ends

RESOLUTION NO. 2022-58

A RESOLUTION OF THE CITY OF GONZALES, APPROVING AND AUTHORIZING

AN AGREEMENT BETWEEN COMMUNITY HOUSING IMPROVEMENT SYSTEMS AND PLANNING ASSOCIATION, INC. (CHISPA), AND THE CITY OF GONZALES

FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS FOR THE PROPERTY LOCATED AT 498 S. ALTA STREET, GONZALES, CA. (APN 020-041-016)
WHEREAS, the City of Gonzales General Plan and Housing Element identifies the need for additional housing of all types; and
WHEREAS, the Housing Element listed housing for seniors as one of the types of housing needed; and
WHEREAS, the City Council has consistently provided direction to staff to actively look for and pursue the development of housing opportunities; and WHEREAS, APN 020-041-016, located at 498 S. Alta Street, is within the City of Gonzales and is adjacent to multi-family housing; and
WHEREAS, on October 18, 2021 in Resolution 2021-40, the City Council of the City of Gonzales and Gonzales Successor Housing Agency approved and authorized the City Manager and Executive Director to move forward with the process to purchase a 0.95 acre property located at 498 S. Alta Street, Gonzales, CA (APN 020-041-016); and WHEREAS, the City of Gonzales purchased the subject property for a negotiated price of $600,000, and had found the purchase price justifiable and appropriate for the purposes of partnering with a non-profit housing developer to develop a senior housing project; and WHEREAS, the City Council of the City of Gonzales and the Board of Directors of the Gonzales Successor Housing Agency resolved that the purchase of the property at APN 020-041- 016 is fully consistent with the approved City General Plan and Housing Element; and WHEREAS, the City Council further directed the City Manager to develop an agreement with a non-profit housing developer for the development of a Senior Housing Project on APN 020- 041-016 and to bring said agreement back to the City/agency for consideration and approval; and WHEREAS, the attached Agreement for Purchase and Sale and Escrow Instructions (“Agreement”) is made by and between the City of Gonzales, a California municipal corporation in the State of California (“Seller”), and Community Housing Improvement Systems and Planning Association, Inc., a California nonprofit public benefit corporation (“Buyer”): and WHEREAS, Seller is the owner of that certain real property containing approximately 0.95 acres of land located in Monterey County, California and currently identified by Assessor’s Parcel Number: 020-041-016; and
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WHEREAS, Seller desires to sell the Property to Buyer and Buyer desires to purchase the Property from Seller on the terms and conditions contained in the attached Agreement; and WHEREAS, if acquired by Buyer, Buyer intends to develop the property into either:
(i) Multifamily housing project which would utilize federal low income housing tax credits and contain at least thirty-six (36) units, at least forty percent (40%) of which would be rented to Senior Households (as defined below) earning no more than eighty percent (80%) of the area median income for Monterey County, California (the “LIHTC Project”), or
(ii) Fifteen (15) single family rental homes which would not utilize any federal low income housing tax credits, forty percent (40%) of which would be rented to Senior Households earning no more than eighty percent (80%) of the area median income for Monterey County, California, and the balance of which would be rented to Senior Households earning no more than one hundred twenty percent (120%) of the area median income for Monterey County, California (the “SFH Project”).

WHEREAS, pursuant to CEQA Guidelines Section 15378, acquisition of the 498 S. Alta Street Property (APN 020-041-016) is not a “project’ for purposes of California Environmental Quality Act (“CEQA”) analysis; and
WHEREAS, upon an anticipated physical development proposal for either project being considered, it will be independently evaluated under the California Environmental Quality Act; and

BE IT FURTHER RESOLVED that the City Council has considered the attached, “Agreement Between Community Housing Improvement Systems And Planning Association, Inc., And The City Of Gonzales For Purchase And Sale Of Real Property And Escrow Instructions." BE IT FURTHER RESOLVED that the City Council approves and authorizes the attached, “Agreement Between Community Housing Improvement Systems And Planning Association, Inc., And The City Of Gonzales For Purchase And Sale Of Real Property And Escrow Instructions."
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 15th day of August 2022 by the following vote:

AYES: COUNCIL/BOARD MEMBERS:

NOES: COUNCIL/BOARD MEMBERS:

ABSTAIN: COUNCIL/BOARD MEMBERS:

ABSENT: COUNCIL/BOARD MEMBERS:
_____________________________________________
Jose L. Rios, The Honorable Mayor
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ATTEST:

Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 1 AGREEMENT BETWEEN COMMUNITY HOUSING IMPROVEMENT SYSTEMS AND PLANNING ASSOCIATION, INC., AND THE CITY OF GONZALES FOR

PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS This Agreement for Purchase and Sale and Escrow Instructions (“Agreement”) is made by and between the City of Gonzales, a California municipal corporation in the State of California (“Seller”), and Community Housing Improvement Systems and Planning Association, Inc., a California nonprofit public benefit corporation (“Buyer”), and is dated for reference as of _____________, 2022, and effective as of the date of its execution by Seller (“Effective Date”).

RECITALS
WHEREAS, Seller is the owner of that certain real property containing approximately

0.95 acres of land located in Monterey County, California and currently identified by Assessor’s Parcel Number: 020-041-016, which is more particularly described in Exhibits A and A-1 attached hereto (the “Property”);
WHEREAS, Seller desires to sell the Property to Buyer and Buyer desires to purchase the Property from Seller on the terms and conditions contained in this Agreement; and WEHREAS, if acquired by Buyer, Buyer intends to develop the property into either (i) a multifamily housing project which would utilize federal low income housing tax credits and contain at least thirty-six (36) units, at least forty percent (40%) of which would be rented to Senior Households (as defined below) earning no more than eighty percent (80%) of the area median income for Monterey County, California (the “LIHTC Project”), or (ii) fifteen (15) single family rental homes which would not utilize any federal low income housing tax credits, forty percent (40%) of which would be rented to Senior Households earning no more than eighty percent (80%) of the area median income for Monterey County, California, and the balance of which would be rented to Senior Households earning no more than one hundred twenty percent (120%) of the area median income for Monterey County, California (the “SFH Project”). As used herein, the “Project” shall mean the LIHTC Project or the SFH Project, as applicable. As used herein, “Senior Households” shall mean households in which all members are at least fiftyfive (55) years of age or older under applicable provisions of California Civil Code Section 51.3 and the United States Fair Housing Act; provided, however, that the foregoing requirements shall be modified, as necessary, to comply with (i) any more restrictive requirements of any federal or state sources of funding for the Project which are applicable to senior housing (including, if applicable, the requirements of the California Tax Credit Allocation Committee applicable to senior projects), and (ii) all federal and state fair housing laws applicable to senior housing.

NOW THEREFORE, in consideration of the mutual promises and covenants contained herein and for good and valuable consideration, Seller and Buyer agree as follows:

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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 2 1. Purchase and Sale
Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property, and all improvements and structures situated on, and appurtenances to, the Property owned by Seller, including and without limitation, all of Seller’s rights, title and interest in and to all easements or rights-of-way, all development rights, air rights, mineral rights, water and water rights relating to the Property, for the Purchase Price (as defined below). As used herein, the “Purchase Price” shall mean (i) in the event that the Buyer obtains entitlements for the LIHTC Project, the sum of FOUR HUNDRED FORTY THOUSAND and NO/100 DOLLARS ($440,000.00), FIFTY THOUSAND and NO/100 DOLLARS ($50,000.00) of which shall be payable in cash on the Closing Date and the balance of which shall be payable by delivery of a promissory note substantially in the form of Exhibit D, attached hereto (“Promissory Note”), or (ii) in the event that the Buyer obtains entitlements for the SFH Project, the sum of FIFTY THOUSAND and NO/100 DOLLARS ($50,000.00), all of which shall be payable in cash on the Closing Date. As used herein, the “Cash Purchase Price” shall mean the portion of the Purchase Price payable in cash on the Closing Date, as applicable. If applicable, Buyer’s obligations under the Promissory Note shall be secured by a deed of trust substantially in the form of Exhibit E, attached hereto (“Deed of Trust”), and recorded against Buyer’s interest in the Property.

2. Conveyance of Property by Seller
Seller agrees to convey the Property to Buyer by duly executed and acknowledged grant deed, identical or substantially similar to that described in Exhibit B, attached hereto (“Grant Deed”), at the Salinas, California office of First American Title (“Title Company”) no later than two (2) business days before the Closing Date.

3. Title to Be Conveyed
Seller agrees that fee simple title to the Property shall be conveyed by the Grant Deed, from Seller to Buyer. Seller agrees that such title shall be free and clear of any and all conditions, restrictions, reservations, liens, encumbrances, assessments, easements (recorded and unrecorded), deeds of trust, mortgages, and any clouds or defects in title, except as expressly permitted herein.

4. Agreement as to Escrow Instructions

4.1. The parties agree to provide escrow instructions to the Title Company consistent with this Section.

4.2. No later than five (5) business days after the Effective Date of this Agreement, Buyer will open an escrow account with the Title Company, deliver a fully executed copy of this Agreement to the Title Company and deposit into the escrow account ONE THOUSAND and NO/100 DOLLARS ($1,000.00) (the “Deposit”). The Deposit shall be fully refundable to Buyer except in the event that this Agreement is terminated by Seller following a default by Buyer of its obligations under this Agreement. In the event the parties consummate the Packet Pg. 73
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 3 purchase and sale of the Property pursuant to this Agreement, the Deposit, plus any interest earned thereon, shall be applied to the Cash Purchase Price payable by Buyer on the Closing Date.

4.3. Escrow shall close on or before the date which is the later of (i) six (6) months after the Effective Date, or (ii) thirty (30) days after the Entitlements Condition (as defined below) has been satisfied (the “Closing Date”). Notwithstanding the foregoing date, the close of escrow shall not occur unless the conditions set forth in this Agreement have been satisfied or waived. If any of such conditions have not been satisfied or waived on or before the Closing Date, this Agreement and the escrow shall terminate; provided, however that such termination shall not affect any claims that either party may have against the other for any breach of this Agreement.

4.4. Any delinquent taxes on the Property shall be paid in full by Seller on or before the close of escrow. Taxes not yet delinquent, and all other items that are customarily prorated in transactions of this nature, shall be prorated and adjusted between Seller and Buyer as of the Closing Date. For purposes of calculating prorations, Buyer shall be deemed to be in title to the Property for the entire day upon which the close of escrow occurs. All such prorations shall be made on the basis of the actual number of days of the month which shall have elapsed as of the Closing Date and based upon a thirty (30) day month and a three hundred sixty (360) day year.

4.5. No later than two (2) business days before the close of escrow, Buyer shall deposit with the Title Company (i) an amount equal to the Cash Purchase Price, less the Deposit and any interest earned on the Deposit, plus Buyer’s share of closing costs, in immediately available funds; (ii) if applicable, a duly executed Promissory Note, (iii) if applicable, a duly executed Deed of Trust; and (iv) a duly executed counterpart of the Affordable Housing Agreement and Declaration of Restrictive Covenants which is (A) substantially in the form of Exhibit F-1, attached hereto, in the event that the Buyer obtains entitlements for the LIHTC Project, or (B) substantially in the form of Exhibit F-2, attached hereto, in the event that the Buyer obtains entitlements for the SFH Project (as applicable, “Declaration”).

4.6. No later than two (2) business days before the close of escrow, Seller shall deposit with the Title Company (i) a duly executed Grant Deed, and (ii) a duly executed counterpart of the Declaration.

4.7. In closing escrow, the Title Company shall promptly undertake all of the following in the manner indicated:

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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 4 4.7.1. Cause the Grant Deed, Deed of Trust (if applicable) and Declaration to be recorded in the Office of the Recorder for the County of Monterey, in that order.

4.7.2. Disburse the Cash Purchase Price, less Seller’s share of closing costs, to Seller in immediately available funds.

4.7.3. Disburse and deliver to such persons or entities any and all other funds and documents which Title Company is authorized or required to deliver or distribute pursuant to these, or any other escrow instructions.

5. Title Insurance
At the time of close of escrow and at no cost to Seller, Seller agrees to cause the Title Company to issue to Buyer with the conveyance of the Property, an Owner’s Policy of Title Insurance with CLTA coverage, with Buyer named as the insured, in the amount of the Purchase Price, insuring Buyer’s title to the Property is free and clear of any and all conditions, restrictions, liens, encumbrances, assessments, easements (recorded and unrecorded), taxes and any clouds or defects in title whatsoever (the “Title Insurance Policy”). Acceptance by Buyer of any such policy of insurance, whether such insurance complies with the requirements of this Section or not, shall not constitute a waiver by Buyer of its right to such insurance as is herein required of Seller, nor a waiver by Buyer of any rights of action for damages or any other rights which may accrue to Buyer by reason of the failure of Seller to convey title or to provide title insurance as required by this Agreement.

6. Costs

6.1. Buyer shall bear the cost of any documentary or transfer taxes and recording fees incidental to the conveying of the Property to Buyer.

6.2. Seller and Buyer shall each bear one-half (1/2) the cost of escrow charges and fees.

6.3. If applicable, Seller shall bear the cost of any mortgage prepayment penalty.

6.4. Each party shall be responsible for payment of the fees and expenses of its respective legal counsel relating to this Agreement and the transactions contemplated herein.

6.5. Any other closing costs, including the premium for the Title Insurance Policy, shall be paid by Buyer.

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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 5 7. Removal of Seller’s Personal Property

7.1. Prior to the close of escrow, Seller agrees to remove from the Property any items of personal property belonging to Seller.

8. Environmental Compliance

8.1. To the best of Seller’s knowledge, the Property is not in violation of any applicable federal, state or local law, ordinance or regulation relating to the environmental conditions on, under or about the Property.

8.2. Seller represents and warrants that, to the best of Seller’s knowledge and after due and diligent inquiry, during the time of Seller’s ownership neither Seller nor any third party has used, generated, manufactured, produced, stored or disposed of on, under or about the Property any hazardous materials, as defined in Exhibit C (“Hazardous Materials”).

8.3. Seller further represents and warrants that, to the best of Seller’s knowledge, no proceeding, investigation or inquiry by any governmental authority with respect to the presence of Hazardous Materials on the Property or the migration of Hazardous Materials from or to other property, is in process, or about to commence, or has previously occurred, notwithstanding any investigation conducted by Buyer in conjunction with Buyer’s purchase of the Property.

8.4. The obligations of this Section 8 shall survive the close of escrow and the recordation of the Grant Deed for the Property.

9. Indemnification

9.1. Seller hereby agrees to indemnify, defend and hold harmless Buyer and its officers, employees, contractors and agents from and against any and all claims, costs (including but not limited to attorney’s fees), damages, demands, encumbrances, expenses, judgments, liabilities, liens, losses, obligations, penalties, whether direct, contingent or consequential, as a direct or indirect result of:
(i) Any material misrepresentation made by Seller in this Agreement or any document, certificate, or exhibit given or delivered to Buyer or Title Company pursuant to or in connection with this Agreement; (ii) Any material breach of, or material inaccuracy in any representation made by Seller in this Agreement; and
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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 6 (iii) Any material breach of, misrepresentation or inaccuracy in any warranty, obligation or covenant made by Seller in this Agreement or in any of Seller’s documents given or delivered to Buyer or Title Company pursuant to, or in connection with this Agreement.
(iv) For the purposes of Section 9.1(i), (ii) and (iii), a “material misrepresentation” is a misrepresentation by Seller that directly results in costs or damages to Buyer in excess of $5,000; a “material breach” is a breach by Seller that directly results in costs or damages to Buyer in excess of $5,000; and a “material inaccuracy” is an inaccuracy by Seller that directly results in costs or damages to Buyer in excess of $5,000.

9.2. Seller hereby agrees to indemnify, defend and hold harmless Buyer and its officers, employees, contractors and agents from and against any and all claims, costs (including but not limited to attorney’s fees), damages, demands, encumbrances, expenses, judgments, liabilities, liens, losses, obligations, penalties, whether direct, contingent or consequential, arising or accruing before the close of escrow, or arising from any act, conduct, omission, contract or commitment of the Seller (or any of Seller’s agents or employees) at any time or times before the close of escrow, including, without limitation:
(i) All foreseeable and all unforeseeable consequential damages directly or indirectly arising out of the use, generation, storage, or disposal of Hazardous Materials by Seller; and
(ii) The cost of any required or necessary repair, cleanup, or detoxification and the preparation of any closure or other required plans, whether such action is required or necessary prior to or following transfer of title to the Property, to the full extent that such action is attributable, to the presence or use, generation, storage, release, or disposal of Hazardous Materials on the Property by any person during Seller’s ownership of the Property.

9.3. Indemnification by Buyer. Buyer hereby agrees to indemnify and hold harmless Seller and its officials, employees, contractors and agents from and against any and all claims, costs, damages, demands, encumbrances, expenses, judgments, liabilities, liens, losses, obligations, penalties, whether direct, contingent or consequential, arising on or after close of escrow as a direct or indirect result of Buyer’s use, operation or ownership of the Property. The rights and obligations of this Section 9.3 will not extend to any of the Seller’s assigns or successors-ininterest.

9.4. The obligations of this Section 9 shall survive the close of escrow and the recordation of the Grant Deed for the Property.

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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 7 10. Seller’s Representations and Warranties; Survival

10.1. The representations and warranties herein by Seller are made to the best of its knowledge. Other than the representations and warranties contained in Section 8 above and 10.2 below, Buyer acknowledges that it is not relying on any representation, warranty or statement of Seller in purchasing the Property.

10.2. Subject to the provisions of Section 10.1, Seller hereby represents and warrants to Buyer that the following facts are true and correct in regard to the Property as of the Effective Date, unless Buyer is otherwise notified by Seller in writing:
(i) Seller has full right, title and authority to convey the Property to Buyer in accordance with this Agreement and to carry out Seller’s obligations hereunder.
(ii) Seller is not a “foreign person” within the meaning of Internal Revenue Code section 1445.
(iii) No third party has any option or right of first refusal to acquire the Property or any interest therein.
(iv) To the best of Seller’s knowledge, no notice has been given of any threatened or pending action to establish an interest in the Property by any third party or of any proceeding which may result in the issuance of such notice and Seller is aware of no such notice or proceedings and there are no other existing claims, suits, actions or legal proceedings, pending or threatened, which may affect the Property.
(v) To the best of Seller’s knowledge, there are no liens or encumbrances on, or claims, covenants, conditions, restrictions, easements, right-of-way, assessments or other matters affecting or pending against the Property other than those specifically disclosed by Seller in this Agreement. (vi) To the best of Seller’s knowledge, there are no encroachments or improvements from adjoining land onto the Property or any part thereof nor from the Property onto adjacent land.
(vii) The Property is not in violation of any federal, state or local law, ordinance, regulation, order, or ruling relating to the industrial hygiene of or environmental conditions in, on, under, above, or about the Property, including but not limited to, soil, asbestos, and groundwater conditions, and no proceeding or inquiry by any governmental authority (including and without limitation to the California Regional Water Quality Control Packet Pg. 78
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 8 Board and the California Department of Toxic Substances Control) with respect to the presence of Hazardous Materials on the Property or the migration of Hazardous Materials from or to other property, is in progress, or about to commence or has previously occurred.
(viii) To the best of Seller’s knowledge, there are no improvements required or planned by any governmental agency having jurisdiction over the Property, which may result in any charge being levied or assessed against the Property.
(ix) There are no sums due, owing or unpaid for labor or materials furnished to the Property which might give rise to a mechanic’s lien on the Property. (x) All of Seller’s documents provided hereunder are correct and complete originals or copies and Seller knows of no inaccuracies set forth therein.

10.3 The continued validity of the representations and warranties described in this Agreement shall be a condition to Buyer’s obligation to the close of escrow on the Property. Any failure of a condition shall give rise to Buyer’s right to terminate this Agreement in addition to any other rights or remedies Buyer may have by reason of a breach by Seller under this Agreement. All of the representations and warranties set forth in this Agreement shall be deemed remade as of the close of escrow and shall survive the delivery and recordation of the Grant Deed.

11. Seller’s Covenants

11.1. Seller shall not enter into any leases or any other contracts, or any amendments or modifications thereto, relating to the Property for a term or with obligations that may extend beyond the close of escrow, nor shall Seller enter into any contracts with respect to the Property outside the normal course of business conducted on the Property. If applicable, Seller shall promptly pay Buyer all rents, if any, collected by Seller which are allocable to periods following the close of escrow.

11.2. Seller shall not cause or permit any encumbrance or lien to be placed on the Property or any interest or right therein following the Effective Date, including and without limitation to, easements, mortgages, or deeds of trust, whereby such rights or interests thereby granted could extend beyond the close of escrow.

11.3. Seller shall not make or permit any improvements to be made to the Property from the Effective Date until close of escrow, except as may be agreed in writing by the parties.

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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 9 11.4. Seller shall not demolish or remove any improvements or structures on the Property from the Effective Date until close of escrow, except as may be agreed in writing by the parties. Buyer shall be responsible for the demotion and removal of any improvements and structures on the Property after the close of escrow.

11.5. Seller shall terminate as of the close of escrow all contracts, including and without limitation to, leases and service contracts relating to the Property, except as otherwise agreed in writing by Buyer and Seller.

12. Buyer’s Representations and Warranties

12.1. Buyer represents and warrants to Seller that as of the Effective Date and as of close of escrow, Buyer is a California nonprofit public benefit corporation and has the legal capacity to understand and execute this Agreement and all documents in connection hereunder.

12.2. All of Buyer’s documents provided hereunder are correct and complete originals or copies and Buyer knows of no inaccuracies set forth therein.

13. Buyer’s Conditions to Closing

13.1. In addition to the other terms and provisions of this Agreement which give Buyer the right to terminate this Agreement and the escrow created hereto, Buyer’s obligation to purchase the Property from Seller shall be subject to the occurrence and/or satisfaction of the following conditions, or Buyer’s written waiver thereto:
(i) No material damage, destruction or loss shall have been suffered with respect to the Property whether or not covered by insurance; (ii) All documents related to the transactions contemplated in this Agreement shall be executed and delivered in accordance with the escrow instructions herein;
(iii) The Title Company shall be unconditionally prepared and committed to issue the Policy of Title Insurance consistent with the terms herein; (iv) Buyer has accepted the form and substance of each document being executed and delivered under this Agreement, including and without limitation to, the Grant Deed; and
(v) The City of Gonzales shall have granted all zoning and planning approvals required for the development of either the LIHTC Project or the SFH Packet Pg. 80
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 10 Project (it being within Buyer’s sole and absolute discretion whether to pursue such approvals for the LIHTC Project of the SHF Project) with such conditions as may be acceptable to Buyer in its sole and absolute discretion (the “Entitlements Condition”). Nothing in this Agreement shall be construed as binding the City of Gonzales and its City Council to grant any zoning and planning approvals and such approvals remain in the discretion of the City of Gonzales and its City Council.

13.2. If any of the conditions set forth in this Section are not satisfied at the time specified herein, Buyer may elect to:
(i) Waive such conditions in writing;
(ii) Grant to Seller an extension of time in which to satisfy such conditions; or (iii) Terminate this Agreement.

Any such election shall not prohibit Buyer from pursuing any rights or remedies set forth in this Agreement, at law or in equity.

14. Commissions
Buyer and Seller represent and warrant to one another that no broker, salesperson or finder has been engaged by them in connection with the transactions contemplated in this Agreement.

15. Survival
None of the obligations, terms or provisions in this Agreement which are expressly stated herein as surviving the close of escrow shall be merged into the Grant Deed, and the delivery and recordation of such Grant Deed shall not affect or impair such obligations or provisions.

16. Notices
Any notice which is required to be given hereunder, or which either party may desire to give to the other, shall be in writing and may be personally delivered or given by mailing the same by registered or certified mail, postage prepaid, and addressed as follows:

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Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 11 Buyer: Seller:

Community Housing Improvement Systems
and Planning Association, Inc.
295 Main Street, Suite 100
Salinas, CA 93901
Attn: Director of Real Estate Development
With a copy to:

Gubb & Barshay LLP
505 14th Street, Suite 405
Oakland, CA 94612
Attention: Lauren Fechter
Or to such other place as Buyer may
designate by written notice.

City of Gonzales
Attn: City Manager
P.O. Box 647
147 Fourth Street
Gonzales, California 93924
With a copy to:

Jarvis Fay LLP
555 12th Street, Suite 1630
Oakland, CA 94607
Attn: Michael Rodriquez
Or to such other place as Seller may designate
by written notice.

17. Governing Law
This Agreement is made under and shall be governed by and interpreted in accordance with the laws of the State of California. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Monterey County, California. In the event any litigation is initiated as a result of any controversy, claim or dispute relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorney’s fees and costs.

18. Counterparts
This Agreement may be executed in several counterparts each of which shall be deemed an original, but all of such counterparts shall constitute one such Agreement.

19. Waiver
The waiver by one party of performance of any term, condition or covenant in this Agreement shall not invalidate this Agreement, nor shall it be deemed to be a waiver of any other term, condition or covenant in this Agreement.

20. Severability
If any one or more of the provisions contained in this Agreement 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 herein and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein, unless such invalidity, illegality or unenforceability materially affects the transactions contemplated in this Agreement or the ability of either party to perform its obligations under this Agreement. In such Packet Pg. 82
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 12 case, either party may terminate this Agreement and escrow on written notice to the other party given no later than ten (10) days after the party giving such notice becomes aware of such invalidity, illegality or unenforceability.

21. Entire Agreement
This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between Seller and Buyer relating to the subject matter hereof. No subsequent agreement, representation or promise made by either party hereto, or by or to any employee, officer, agent or representative of either party shall be of any effect unless it is in writing and executed by the party to be bound thereby. The terms of this Agreement shall not be modified or amended except by an instrument in writing executed by each of the parties hereto.

22. Independent Legal Counsel
Each party acknowledges that it had the opportunity to consult with independent legal counsel of its own choosing in connection with the negotiation and execution of this Agreement.

23. Assignment
Neither this Agreement nor any of the rights or obligations of Seller hereunder shall be transferred or assigned by Seller without the prior written consent of Buyer, which may be given or withheld in Buyer’s sole and absolute discretion. Buyer may assign this Agreement and Buyer’s rights and obligations hereunder without the Seller's written consent to (i) a nonprofit public benefit corporation affiliated with Buyer, (ii) a limited liability company in which Buyer or an affiliated nonprofit public corporation is the managing member, or (iii) a limited partnership in which Buyer, an affiliated nonprofit public benefit corporation, or a limited liability company in which Buyer of such affiliated nonprofit public benefit corporation is the managing general partner. Buyer shall deliver a copy of the fully executed written assignment and assumption agreement to Seller and the Title Company prior to the close of escrow. No other assignment may be made without the prior written consent of Seller, which may be given or withheld in Seller’s sole and absolute discretion.

24. Miscellaneous Provisions

24.1. Time is of the essence for each term and provision of this Agreement.

24.2. The headings and section titles of this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or intent of any provisions of this Agreement and shall not be construed to affect the terms and provisions of this Agreement or the interpretation or construction of the terms and provisions of this Agreement.

24.3. All recitals, exhibits, addenda referred to herein, and any exhibits or schedules which may from time to time be referred to in any duly executed amendment Packet Pg. 83
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 13 hereto, are by such reference incorporated herein and shall be deemed a part of this Agreement as if set forth fully herein.

24.4. This Agreement shall be interpreted and construed only by the contents hereof and there shall be no presumption or standard of construction in favor of or against either party.

24.5. Unless stated otherwise, “day” or “days” as used herein shall mean calendar days. “Business day” or “business days” as used herein shall mean weekdays, excluding holidays.

24.6. The parties agree to execute, acknowledge, if necessary, and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate and perform all of the terms, provisions and conditions of this Agreement and the transactions contemplated herein.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

SELLER:

City of Gonzales, a California municipal
corporation in the State of California, acting by and
through its City Manager
By: ____________________________
________________, City Manager
Dated: _____________________, 2022
APPROVED AS TO FORM:

By: ____________________________
Michael Rodriquez, City Attorney
BUYER:

Community Housing Improvement Systems and
Planning Association, Inc., a California nonprofit
public benefit corporation
By: ____________________________
Name: ____________________________
Title: ____________________________
Dated: _____________________, 2022
Packet Pg. 84
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real Packet Pg. 85
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 15 EXHIBIT A-1 – PLAT
[See Attached]
Packet Pg. 86
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real Packet Pg. 87
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 16 EXHIBIT B – GRANT DEED
Recording Requested By And
When Recorded Return To:

Community Housing Improvement Systems
and Planning Association, Inc.
295 Main Street, Suite 100
Salinas, CA 93901
Attention: ____________________

GRANT DEED
TITLE ORDER NO.:

ESCROW NO.:

APN: 020-041-016
For valuable consideration, receipt of which is hereby acknowledged, GRANTOR the City of Gonzales, a municipal corporation in the State of California, hereby GRANTS to
GRANTEE ______________________, a California _________________________, all of their rights, title and interests in and to that certain real property situated in the County of Monterey, State of California and currently identified by Assessor’s Parcel Number: 020-041- 016, more particularly described in Exhibits A and A-1 attached hereto and made a part hereof.

CITY OF GONZALES, a municipal corporation
By:
_____________________, City Manager
Packet Pg. 88
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 17 ACKNOWLEDGMENT

STATE OF CALIFORNIA )
) ss.

COUNTY OF MONTEREY )
On , 201 , before me, , a Notary
Public, personally appeared who proved to me on the
basis of satisfactory evidence to be the person(s) whose names is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Packet Pg. 89
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 18 EXHIBIT C – HAZARDOUS MATERIALS
“Hazardous Materials” shall mean any and all (a) substances, products, by-products, waste, or other materials of any nature or kind whatsoever which is or becomes listed, regulated or addressed under any Environmental Laws, and (b) any materials, substances, products, by-products, waste, or other materials of any nature or kind whatsoever whose presence in and of itself or in combination with other materials, substances, products, by-products, or waste may give rise to liability under any Environmental Laws or any statutory or common law theory based on negligence, trespass, intentional tort, nuisance, strict or absolute liability or under any reported decisions of any state or federal court; and (c) any substance, product, by-product, waste or any other material which may be hazardous or harmful to the air, water, soil, environment or affect industrial hygiene, occupational, health, safety and/or general welfare conditions, including without limitation, petroleum and/or asbestos materials, products, by-products, or waste.
“Environmental Laws” shall mean and include all federal, state, and local laws, statutes, ordinances, regulations, resolutions, decrees, and/or rules now or hereinafter in effect, as may be amended from time to time, and all implementing regulations, directives, orders, guidelines, and federal or state court decisions, interpreting, relating to, regulating or imposing liability (including, but not limited to, response, removal, remediation and damage costs) or standards of conduct or performance relating to industrial hygiene, occupational, health, and/or safety conditions, environmental conditions, or exposure to, contamination by, or clean-up of, any and all Hazardous Materials, including without limitation, all federal or state superlien or environmental clean-up statutes.

Packet Pg. 90
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 19 EXHIBIT D – PROMISSORY NOTE
[See Attached]
Packet Pg. 91
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 1 NON-RECOURSE PROMISSORY NOTE

SECURED BY DEED OF TRUST
$390,000 _____________, 2022
FOR VALUE RECEIVED, __________________________, a California ___________________ (“Maker”), promises to pay the CITY OF GONZALES, a California municipal corporation (“Holder”), the amount of Three Hundred Ninety Thousand Dollars ($390,000) (the “Loan”).

1. SECURITY. This Note shall be secured by a deed of trust (the “Deed of Trust”) recorded against Maker’s interest in that certain real property located in the City of Gonzales, California more particularly described in the Deed of Trust (the “Property”). Maker intends to construct a multifamily housing project containing at least thirty-six (36) units (the “Project”) at the Property.

2. MATURITY DATE. On the date which is the earlier of (i) fifty-five (55) years from the closing date for the permanent, post-construction financing for the Project, or (ii) fiftyeight (58) years from the date hereof (the “Maturity Date”), the entire amount of outstanding principal and all accrued but unpaid interest shall be due and payable.

3. REPAYMENT. The principal amount of this Note shall be repaid as follows:
(a) Interest. Interest shall accrue on the unpaid principal balance of this Note at the rate of three percent (3%) per annum. Interest shall be calculated on the basis of a year of 365 days and be charged for the actual number of days elapsed. (b) Payments Prior to Maturity Date. In any year in which the cash flow from operations of the Project results in Residual Receipts (as defined below), Maker shall pay to Holder an amount equal to Holder’s Share of Residual Receipts (as defined below). Payment shall be due within sixty (60) days of completion of an audited financial statement documenting cash flow from the Project, but in any event not later than six (6) months after the end of the Maker’s fiscal year.

All payments shall be credited first to accrued interest and then to outstanding principal.

As used herein, “Residual Receipts” shall mean, with respect to any calendar year, the amount by which Gross Revenue (as defined below) exceeds Annual Operating Expenses (as defined below).
“Gross Revenue,” with respect to any calendar year, shall mean all revenue, income, receipts, and other consideration from operation and leasing of the Project. “Gross Revenue” shall include, but not be limited to: all rents, fees and charges paid by tenants, Section 8 payments or other rental subsidy payments received for the dwelling units, deposits forfeited by tenants, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; proceeds from vending and laundry room machines; the proceeds of business interruption or similar insurance; the proceeds of casualty insurance to the extent not utilized to repair or rebuild the Project (or applied toward the cost of recovering such proceeds); and condemnation awards for a taking of part or all of the Project for a temporary period. “Gross Packet Pg. 92
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 2 Revenue” shall not include tenants’ security deposits; interest earned on security deposits, reserves or other funds held in similarly restricted accounts; or loan proceeds, capital contributions or similar advances.
“Annual Operating Expenses,” with respect to any calendar year, shall include, without limitation: (1) all direct costs and expenses incurred for the operation and maintenance of the Project to the extent that they are consistent with an annual independent audit performed by a certified public accountant using generally accepted accounting principles; (2) property management and resident services fees and reimbursements, not to exceed fees and reimbursements which are standard in the industry; (3) debt service on any loans secured by the Property (excluding debt service due from Residual Receipts) and any issuer or lender monitoring fees payable in connection with such loans; (4) deposits into reserves as required by senior lenders or pursuant to the Maker’s partnership agreement (the “Partnership Agreement”); (5) deferred developer fees; (6) annual partnership management and asset management fees payable to Maker’s general partners and/or limited partners; (7) repayment of any loans or other advances to the partnership from a general partner or limited partner or an affiliate thereof; (8) the amount of any downward tax credit adjusters pursuant to the Partnership Agreement; and (9) all other ordinary and reasonable costs and expenses approved by Holder and not listed above. Any costs or expenses requiring Holder review and approval shall be deemed approved to the extent they are included in an operating budget for the Project approved by the Holder.

Gross Revenue and Annual Operating Expenses shall each be determined on an accrual basis, in a manner consistent with the multifamily housing projects similar to the Project.

As used herein, “Holder’s Share of Residual Receipts” shall mean the portion of Residual Receipts payable to Holder, which shall be a proportionate share of fifty percent (50%) of the Residual Receipts based on the Loan’s size as of the closing of the permanent, post-construction financing for the Project, net of any repayments made from construction savings, relative to all deferred payment loans with provisions for payments from Residual Receipts. (c) Payment of Principal upon Event of Default or Sale. In the event the Property is sold or upon an Event of Default, payment of the principal amount of the Loan, together with all accrued but unpaid interest, shall be due and payable. (d) Prepayment. This Note may be prepaid in whole or part at any time and from time to time without penalty, fee. or premium.
(e) Place of Payment. Any payment required under this Note shall be made payable to the City of Gonzales, P.O. Box 647, 147 Fourth Street, Gonzales, California 93924.

The place of payment may be changed from time and time as Holder may designate in writing.

Payments shall be in lawful money of the United States of America.

4. COLLECTION. This Note evidences the Loan and is secured by the Deed of Trust recorded against the Property. The terms of the Deed of Trust are incorporated herein by this reference. Maker agrees to pay all the collection and enforcement costs, expenses and attorneys’ fees paid or incurred by the holder of this Note or adjudged by a court in any litigation or Packet Pg. 93
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 3 controversy connected with this Note, or security for it, including but not limited to actions for declaratory relief that any such holder is required to prosecute or defend and actions for relief based on rescission, or actions to cancel this Note that any such holder is required to defend.

5. DEFAULT.
(a) The occurrence of any of the following shall constitute an “Event of Default” under this Note: (i) Maker fails to pay to Holder any amount due hereunder within ten (10) days of notice from Holder that such payments is due; (ii) any default by Maker of any other covenant under this Note; (iii) any default by Maker under the Deed of Trust or any other document evidencing or securing the Loan; (iv) Maker fails to pay any taxes or assessments due on the Property; or (v) Maker’s bankruptcy, whether voluntary or involuntary. (b) Upon the occurrence of any Event of Default, or at any time thereafter, at the option of Holder hereof and without notice, the entire unpaid principal and interest owing on this Note shall become immediately due and payable. This option may be exercised at any time following any such event, and the acceptance of one or more installments thereafter shall not constitute a waiver of Holder’s option. Holder’s failure to exercise such option shall not constitute a waiver of such option with respect to any subsequent event. Holder’s failure in the exercise of any other right or remedy hereunder or under any agreement which secures the indebtedness or is related thereto shall not affect any right or remedy and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof. (c) Notwithstanding anything to the contrary in this Note or the Deed of Trust (collectively, the “Loan Documents”) and except with respect to any obligation to make payments to Holder, Maker shall have the right to cure any defaults under the Loan Documents and Holder agrees to accept cures tendered by Maker within thirty (30) days of written notice to Maker of such default, plus such additional time as is reasonably necessary to cure the default provided Maker has commenced the cure within such thirty (30) day period and is diligently prosecuting the cure, but in no event longer than ninety (90) days.
(d) The Note is a non-recourse obligation of Maker. Neither Maker nor any partner of Maker shall have any direct or indirect personal liability for payment of the principal of, or interest on, the Loan or the performance of the covenants of Maker under the Deed of Trust.

The sole recourse of Holder with respect to the principal of, or interest on, this Note and defaults by Maker in the performance of its covenants under the Deed of Trust shall be to the property described in the Deed of Trust.

6. WAIVER. Maker and any endorsers hereof and all others who may become liable for all or any part of this obligation, severally waive presentment for payment, demand and protest and notice of protest, and of dishonor and nonpayment of this Note, and expressly consent to any extension of the time of payment hereof or of any installment hereof, to the release of any party liable for this obligation, and any such extension or release may be made without notice to any of said parties and without any way affecting or discharging this liability.

Packet Pg. 94
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 4 7. ATTORNEY FEES. Maker agrees to pay immediately upon demand all costs and expenses of Holder, including attorneys’ fees if: (i) after an Event of Default this Note is placed in the hands of an attorney or attorneys for collection; (ii) after an Event of Default hereunder or under the Deed of Trust, Holder finds it necessary or desirable to secure the services or advice of one or more attorneys with regard to collection of this Note against Maker, any guarantor or any other party liable therefore or to the protection of its rights under the Loan Documents; or (iii) Holder seeks to have the Property abandoned by or reclaimed from any estate in bankruptcy, or attempts to have any stay or injunction prohibiting the enforcement or collection of the Note or prohibiting the enforcement of the Loan Documents or any other agreement evidencing or securing this Note lifted by any bankruptcy or other courts.

8. INTEGRATION. This Note, the Deed of Trust and the other loan documents relating to this Note, embody the agreement between Holder and Maker for the Loan and its terms and conditions.

9. AMENDMENTS. This Note may not be modified or amended except by an instrument in writing executed by the parties sought to be bound thereby.

10. GOVERNING LAW. This Note shall be governed by and construed in accordance with the laws of the State of California.

11. ASSIGNMENT. Holder shall not sell or assign this Note without the prior written consent of Maker.

12. NOTICES. Any notice which is required to be given hereunder, or which either party may desire to give to the other, shall be in writing and may be personally delivered or given by mailing the same by registered or certified mail, postage prepaid, and addressed as follows:

Maker: Holder:
c/o Community Housing Improvement
Systems and Planning Association, Inc.
295 Main Street, Suite 100
Salinas, CA 93901
Attn: Director of Real Estate Development
With a copy to:

Gubb & Barshay LLP
505 14th Street, Suite 405
Oakland, CA 94612
Attention: Lauren Fechter
Or to such other place as Maker may
designate by written notice.

City of Gonzales
Attn: City Manager
P.O. Box 647
147 Fourth Street
Gonzales, California 93924
With a copy to:

Jarvis Fay LLP
555 12th Street, Suite 1630
Oakland, CA 94607
Attn: Michael Rodriquez
Or to such other place as Holder may
designate by written notice.

Packet Pg. 95
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 5 Executed as of the date first written above.

MAKER:
[Insert Signature Block]
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of )
On_____________ before me, _____________________________, Notary Public, personally appeared,
_______________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature_____________________________
Packet Pg. 96
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 20 EXHIBIT E – DEED OF TRUST
[See Attached]
Packet Pg. 97
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 1 RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Gonzales
Attn: City Manager
P.O. Box 647
147 Fourth Street
Gonzales, CA 93924

DEED OF TRUST WITH ASSIGNMENT OF RENTS
______________________________________________________________________________ APN: 020-041-016

RECORD WITHOUT FEE PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 6103 & 27388.1(a)(2)(D)
THIS DEED OF TRUST is made as of the ____ day of _________________, 2022, between __________________________, a California limited liability company, together with its successors and assigns, herein called “TRUSTOR,” and
__________________________, herein called “TRUSTEE”, and THE CITY OF GONZALES, a California municipal corporation, whose address is P.O. Box 647, 147 Fourth Street, Gonzales, California 93924, herein called “BENEFICIARY.” Trustor irrevocably grants, transfers and assigns to Trustee in Trust, with Power of Sale that property in the City of Gonzales, County of Monterey, State of California,, currently identified by Monterey County Assessor’s Parcel No. 020-041-016, and more particularly described as follows:

SEE EXHIBIT A ATTACHED
Together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits.

FOR THE PURPOSE OF SECURING: (1) payment of the sum of THREE HUNDRED NINETY THOUSAND DOLLARS ($390,000) with interest thereon according to the terms of a promissory note or notes of even date herewith made by TRUSTOR, payable to order of BENEFICIARY, and extensions or renewals thereof; (2) the performance of each agreement of TRUSTOR incorporated by reference or contained herein or reciting it is so secured; (3) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or its successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust.

Packet Pg. 98
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 2 To protect the security of this Deed of Trust, and with respect to the property above described, Trustor agrees:
(1) To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of the law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general.
(2) To provide, maintain and deliver to Beneficiary fire, property damage, and general casualty insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.
(3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney’s fees, in any action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust.
(4) To pay: at least fifteen (15) days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; and all costs, fees and expenses of this Trust.

Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge, or lien, which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the Packet Pg. 99
Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 3 obligation secured hereby, any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. (6) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by him or her in the same manner and with the same effect as above provided for disposition or proceeds of fire or other insurance. (7) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (8) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and said note for endorsement, and without affecting the personal liability or any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. (9) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.

The Grantee in such reconveyance may be described as the person or persons legally entitled thereto.
(10) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his or her own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including attorney’s fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (11) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which Packet Pg. 100 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 4 notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed of Trust, said note and all documents evidencing expenditures secured hereby.

After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof.

Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale.

After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of:
all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (12) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the Office of the Recorder of Monterey County where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded and the name and address of the new Trustee.
(13) That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or the neuter, and the singular number includes the plural.
(14) The Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obliged to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge thereof does not exceed the maximum allowed by law.

Packet Pg. 101 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 5 The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him or her at its address hereinbefore set forth.

TRUSTOR:
[INSERT SIGNATURE BLOCK]
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature_____________________________
Packet Pg. 102 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 6 EXHIBITA

LEGAL DESCRIPTION OF THE PROPERTY
Packet Pg. 103 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 21 EXHIBIT F-1 – DECLARATION (LIHTC PROJECT)
[See Attached]
Packet Pg. 104 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Gonzales
Attn: City Manager
P.O. Box 647
147 Fourth Street
Gonzales, CA 93924

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder’s use.

AFFORDABLE HOUSING AGREEMENT AND

DECLARATION OF RESTRICTIVE COVENANTS
(LIHTC PROJECT)

THIS AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF
RESTRICTIVE COVENANTS (this “Agreement”) is entered into effective as of ___________________, 2022 (“Effective Date”), by and between the City of Gonzales, a California municipal corporation (“City”), and __________________________ (“Owner”). The City and the Owner are collectively referred to herein as the “Parties.” A. Owner is the owner of the real property located in the City of Gonzales, County of Monterey, State of California, currently identified as Monterey County Assessor’s Parcel No. 020-041-016, and more particularly described in Exhibit A attached hereto (the “Property”).

B. Owner intends to develop, own, and operate an affordable multi-family residential development on the Property (the “Project”).

C. The purpose of this Agreement is to regulate and restrict the occupancy and rents of certain units at the Project. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon Owner and Owner’s successors and assigns for the full term of this Agreement.

NOW, THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows.

1. Incorporation of Recitals; Acknowledgement. The Parties acknowledge the truth of the foregoing Recitals which are hereby incorporated into this Agreement. Owner acknowledges and agrees that the City has authority to impose rent restrictions and income eligibility requirements on the Project as set forth in this Agreement.

2. Definitions. The following terms shall have the meanings set forth in this Section Packet Pg. 105 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 2 wherever used in this Agreement.
“Actual Household Size” means the actual number of persons in the applicable household.
“Adjusted for Family Size Appropriate for the Unit” shall be determined consistent with Section 50052.5(h) of the California Health and Safety Code, subject to the application of federal rules and regulations applicable to Project financing sources, including, if applicable, Section 42(g)(2) of the Internal Revenue Code of 1986, as amended. “Affordable Rent” means the following for the Rent Restricted Units: a monthly rent that does not exceed one-twelfth of thirty percent (30%) of eighty percent (80%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, less a utility allowance and other fees and charges required to be paid by tenants of the Project on a non-optional basis. “Area Median Income” or “AMI” means the area median income for Monterey County, California, adjusted for Actual Household Size, as determined by the United States Department of Housing and Urban Development (“HUD”) and as published from time to time by the State of California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c).
“Gross Income” shall have the meaning set forth in Section 6914 of Title 25 of the California Code of Regulations as such section may be revised from time to time. “Official Records” means the Official Records of the Monterey County Recorder. “Project” is defined in Recital B.
“Property” is defined in Recital A.
“Rent Restricted Units” is defined in Section 4.
“Senior Household” shall mean a household in which all members are at least fifty-five (55) years of age or older under applicable provisions of California Civil Code Section 51.3 and the United States Fair Housing Act; provided, however, that the foregoing requirements shall be modified, as necessary, to comply with (i) any more restrictive requirements of any federal or state sources of funding for the Project which are applicable to senior housing, including the requirements of the California Tax Credit Allocation Committee applicable to senior projects, and (ii) all federal and state fair housing laws applicable to senior housing. “Term” is defined in Section 4.

3. Reserved.

4. Household Restrictions. For a term of twenty (20) years commencing upon the date that the City Building Department signs off on the final inspection of the Project following Packet Pg. 106 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 3 completion of construction and issues a final certificate of occupancy or equivalent for the Project (the “Term”), (i) one hundred percent (100%) of the residential units in the Project (excluding one manager’s unit) shall be restricted for occupancy by Senior Households, and (ii) not less than forty percent (40%) of the total number of residential units in the Project shall be restricted for occupancy by Senior Households whose household Gross Income at initial occupancy is no greater than eighty percent (80%) of AMI (the residential units described in this clause (ii) being collectively referred to herein as the “Rent Restricted Units”). Monthly rents for each Rent Restricted Unit shall be restricted to Affordable Rent.

5. No Condominium Conversion; Occupancy as Principal Residence; No Short-Term Rentals. Neither Owner nor any successor in interest shall be permitted to convert the residential units in the Project to condominium or cooperative ownership or sell condominium or cooperative rights to the residential units in the Project during the term of this Agreement. All residential units in the Project must be occupied as the principal residence of the tenant. The rental agreement or lease must provide that the tenant acknowledges and agrees that the dwelling unit must be occupied as the household’s principal residence, and that the unit may not be subleased or made available as a short-term rental.

6. Recordation; Reconveyance. This Agreement shall be recorded in the Official Records promptly following execution by the Parties. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term.

7. Compliance with Fair Housing Laws; Nondiscrimination. Owner shall comply with all state and federal fair housing laws, rules, regulations and guidelines in the marketing and rental of the units in the Project. Owner shall not restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or the Project, or any portion thereof, on the basis of race, color, religion, creed, sex, gender identity, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of purchasers, tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith.

8. Records; Monitoring. On an annual basis, Owner shall provide a written certification in a form reasonably requested by City, that the Project is in compliance with the terms of this Agreement. Owner shall maintain rent and occupancy records for the Project, and with at least Packet Pg. 107 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 4 48 hours’ notice, City shall have the right to inspect such records and the Project to monitor compliance with this Agreement.

9. Effectiveness Survives Conveyance of Property. This Agreement shall remain effective and fully binding regardless of any sale, assignment, transfer, or conveyance of the Property or the Project or any part thereof or interest therein.

10. Binding Upon Successors; Covenants to Run with the Land. Owner hereby subjects its interest in the Property and the Project to the covenants and restrictions set forth in this Agreement. The City and Owner hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of Owner and City, regardless of any sale, assignment, conveyance or transfer of the Property, the Project or any part thereof or interest therein. Any successor-in-interest to Owner, including without limitation any purchaser, transferee or lessee of the Property or the Project (other than the tenants of the individual dwelling units within the Project) shall be subject to all of the duties and obligations imposed hereby for the full Term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or the Project or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or other instrument has been executed prior to the date hereof, Owner hereby covenants to obtain and deliver to City an instrument in recordable form signed by the parties to such contract, deed, ground lease or other instrument pursuant to which such parties acknowledge and accept this Agreement and agree to be bound hereby. Owner agrees for itself and for its successors that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property and the Project in favor of City.

11. No Subordination. Owner hereby represents, warrants and covenants that with the exception of easements of record, absent the written consent of City, this Agreement shall not be subordinated in priority to any lien (other than those pertaining to taxes or assessments), encumbrance, or other interest in the Property or the Project. If at the time this Agreement is recorded, any interest, lien, or encumbrance has been recorded against the Project in position superior to this Agreement, upon the request of City, Owner hereby covenants and agrees to promptly undertake all action necessary to clear such matter from title or to subordinate such interest to this Agreement consistent with the intent of and in accordance with this Section 11, and to provide such evidence thereof as City may reasonably request.

12. Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Project or the Property, and the purchaser at any trustee’s sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall be bound by and subject to this Agreement from and after such trustee’s sale or foreclosure sale. Promptly upon determining Packet Pg. 108 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 5 that a violation of this Agreement has occurred, City shall give written notice to the holders of record of any mortgages or deeds of trust encumbering the Project or the Property that such violation has occurred.

13. Default and Remedies.

13.1 Events of Default. An Event of Default shall arise hereunder upon the occurrence of a default in the performance of any term, provision or covenant under this Agreement and the continuation of such default for thirty (30) days following the date upon which City shall have given written notice of the default to Owner, or if the nature of any such default is such that it cannot be cured within thirty (30) days, Owner’s failure to commence to cure the default within thirty (30) days and thereafter prosecute the curing of such default with due diligence and in good faith, but in no event longer than ninety (90) days from the date of delivery of the notice of default.

13.2 Remedies. Upon the occurrence of an Event of Default and its continuation beyond any applicable cure period, City may proceed with any of the following remedies:
(a) Bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief; (b) Bring an action for damages or pursue any other remedy allowed at law, or in equity;
(c) For violations with respect to allowable rents, impose a charge in an amount equal to the actual amount collected in excess of the Affordable Rent; or (d) Pursue any remedy available under any other applicable law.

Each of the remedies provided herein is cumulative and not exclusive. The City may exercise from time to time any rights and remedies available to it under applicable law or in equity, in addition to, and not in lieu of, any rights and remedies expressly provided in this Agreement.

14. Miscellaneous.

14.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by both Parties and recorded in the Official Records.

14.2 No Waiver. Any waiver by City of any term or provision of this Agreement must be in writing. No waiver shall be implied from any delay or failure by City to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. No failure or delay by City at any time to require strict performance by Owner of any provision of this Agreement or to exercise any election contained herein or any right, power or remedy hereunder shall be construed as a waiver of any other provision or any succeeding Packet Pg. 109 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 6 breach of the same or any other provision hereof or a relinquishment for the future of such election.

14.3 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.

14.4 Parties Not Co-Venturers; Independent Contractor; No Agency Relationship.

Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another.

14.5 Action by the City. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the City is required or permitted under this Agreement, such action shall be in writing, and such action may be given, made or taken by the City’s City Manager or by any person who shall have been designated by the City Manager, subject to approval by the City Council.

Packet Pg. 110 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 7 14.6 Headings; Construction; Statutory References. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. All references in this Agreement to particular statutes, regulations, ordinances or resolutions of the United States, the State of California, or the City of Gonzales shall be deemed to include the same statute, regulation, ordinance or resolution as hereafter amended or renumbered, or if repealed, to such other provisions as may thereafter govern the same subject.

14.7 Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Monterey County, California.

14.8 Attorneys’ Fees and Costs. If any legal or administrative action is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys’ fees and costs incurred in such action.

14.9 Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.

14.10 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. [remainder of page left intentionally blank; signature pages follow] Packet Pg. 111 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 8 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Agreement and Declaration of Restrictive Covenants as of the date first written above.

CITY:

City of Gonzales, a California municipal
corporation in the State of California,
acting by and through its City Manager
By: ____________________________
________________, City Manager
Dated: _____________________, 2022
APPROVED AS TO FORM:

By: ____________________________
Michael Rodriquez, City Attorney
OWNER:
[Insert Owner Signature Block]
Packet Pg. 112 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 9 ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.

Packet Pg. 113 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 10 ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Packet Pg. 114 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 11 EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
Packet Pg. 115 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 22 EXHIBIT F-2 – DECLARATION (SFH PROJECT)
[See Attached]
Packet Pg. 116 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Gonzales
Attn: City Manager
P.O. Box 647
147 Fourth Street
Gonzales, CA 93924

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder’s use.

AFFORDABLE HOUSING AGREEMENT AND

DECLARATION OF RESTRICTIVE COVENANTS
(SINGLE FAMILY HOMES PROJECT)

THIS AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF
RESTRICTIVE COVENANTS (this “Agreement”) is entered into effective as of ___________________, 2022 (“Effective Date”), by and between the City of Gonzales, a California municipal corporation (“City”), and __________________________ (“Owner”). The City and the Owner are collectively referred to herein as the “Parties.” A. Owner is the owner of the real property located in the City of Gonzales, County of Monterey, State of California, currently identified by Monterey County Assessor’s Parcel No. 020-041-016, and more particularly described in Exhibit A attached hereto (the “Property”).

B. Owner intends to develop, own, and operate a residential development on the Property (the “Project”) containing fifteen (15) single family rental homes (each a “Unit,” and collectively, the “Units”).

C. The purpose of this Agreement is to regulate and restrict the occupancy and rents of the Units at the Project. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon Owner and Owner’s successors and assigns for the full term of this Agreement.

NOW, THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows.

Packet Pg. 117 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 2 2. Definitions. The following terms shall have the meanings set forth in this Section wherever used in this Agreement.
“80% AMI Units” is defined in Section 4.
“120% AMI Units” is defined in Section 4.
“Actual Household Size” means the actual number of persons in the applicable household.
“Adjusted for Family Size Appropriate for the Unit” shall be determined consistent with Section 50052.5(h) of the California Health and Safety Code, subject to the application of federal rules and regulations applicable to Project financing sources, including, if applicable, Section 42(g)(2) of the Internal Revenue Code of 1986, as amended. “Affordable Rent” means a monthly rent that does not exceed (i) with respect to the 80% AMI Units, one-twelfth of thirty percent (30%) of eighty percent (80%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, less a utility allowance and other fees and charges required to be paid by tenants of the Project on a non-optional basis, or (ii) with respect to the 120% AMI Units, one-twelfth of thirty percent (30%) of one hundred twenty percent (120%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, less a utility allowance and other fees and charges required to be paid by tenants of the Project on a non-optional basis.
“Area Median Income” or “AMI” means the area median income for Monterey County, California, adjusted for Actual Household Size, as determined by the United States Department of Housing and Urban Development (“HUD”) and as published from time to time by the State of California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c).
“Gross Income” shall have the meaning set forth in Section 6914 of Title 25 of the California Code of Regulations as such section may be revised from time to time. “Official Records” means the Official Records of the Monterey County Recorder. “Project” is defined in Recital B.
“Property” is defined in Recital A.
“Senior Household” shall mean a household in which all members are at least fifty-five (55) years of age or older under applicable provisions of California Civil Code Section 51.3 and the United States Fair Housing Act; provided, however, that the foregoing requirements shall be modified, as necessary, to comply with (i) any more restrictive requirements of any federal or state sources of funding for the Project which are applicable to senior housing, and (ii) all federal and state fair housing laws applicable to senior housing.

Packet Pg. 118 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 3 “Term” is defined in Section 4.

3. Reserved.

4. Affordability Restriction. For a term of twenty (20) years commencing upon the date that the City Building Department signs off on the final inspection of the Project following completion of construction and issues a final certificate of occupancy or equivalent for the Project (the “Term”), not less than forty percent (40%) of the total number of Units in the Project shall be restricted for occupancy by Senior Households whose household Gross Income at initial occupancy is no greater than eighty percent (80%) of AMI (the “80% AMI Units”) and the balance of the Units in the Project shall be restricted for occupancy by Senior Households whose household Gross Income at initial occupancy is no greater than one hundred twenty percent (120%) of AMI (the “120% AMI Units”). Monthly rents for each Unit shall be restricted to Affordable Rent.

5. No Condominium Conversion; No Subdivision; Occupancy as Principal Residence; No Short-Term Rentals. Neither Owner nor any successor in interest shall be permitted to convert the Units in the Project to condominium or cooperative ownership or sell condominium or cooperative rights to the residential units in the Project during the term of this Agreement.

Additionally, neither Owner nor any successor shall be permitted to transfer any ownership interest in any individual Unit or to subdivide the Property for the purpose of transferring any ownership interest in any individual Unit. All Units in the Project must be occupied as the principal residence of the tenant. The rental agreement or lease must provide that the tenant acknowledges and agrees that the Unit must be occupied as the household’s principal residence, and that the Unit may not be subleased or made available as a short-term rental.

7. Compliance with Fair Housing Laws; Nondiscrimination. Owner shall comply with all state and federal fair housing laws, rules, regulations and guidelines in the marketing and rental of the Units in the Project. Owner shall not restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or the Project, or any portion thereof, on the basis of race, color, religion, creed, sex, gender identity, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any Packet Pg. 119 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 4 such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of purchasers, tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith.

8. Records; Monitoring. On an annual basis, Owner shall provide a written certification in a form reasonably requested by City, that the Project is in compliance with the terms of this Agreement. Owner shall maintain rent and occupancy records for the Project, and with at least 48 hours’ notice, City shall have the right to inspect such records and the Project to monitor compliance with this Agreement.

10. Binding Upon Successors; Covenants to Run with the Land. Owner hereby subjects its interest in the Property and the Project to the covenants and restrictions set forth in this Agreement. The City and Owner hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of Owner and City, regardless of any sale, assignment, conveyance or transfer of the Property, the Project or any part thereof or interest therein. Any successor-in-interest to Owner, including without limitation any purchaser, transferee or lessee of the Property or the Project (other than the tenants of the individual Units within the Project) shall be subject to all of the duties and obligations imposed hereby for the full Term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or the Project or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or other instrument has been executed prior to the date hereof, Owner hereby covenants to obtain and deliver to City an instrument in recordable form signed by the parties to such contract, deed, ground lease or other instrument pursuant to which such parties acknowledge and accept this Agreement and agree to be bound hereby. Owner agrees for itself and for its successors that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property and the Project in favor of City.

11. No Subordination. Owner hereby represents, warrants and covenants that with the exception of easements of record, absent the written consent of City, this Agreement shall not be subordinated in priority to any lien (other than those pertaining to taxes or assessments), encumbrance, or other interest in the Property or the Project. If at the time this Agreement is recorded, any interest, lien, or encumbrance has been recorded against the Project in position superior to this Agreement, upon the request of City, Owner hereby covenants and agrees to promptly undertake all action necessary to clear such matter from title or to subordinate such Packet Pg. 120 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 5 interest to this Agreement consistent with the intent of and in accordance with this Section 11, and to provide such evidence thereof as City may reasonably request.

12. Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Project or the Property, and the purchaser at any trustee’s sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall be bound by and subject to this Agreement from and after such trustee’s sale or foreclosure sale. Promptly upon determining that a violation of this Agreement has occurred, City shall give written notice to the holders of record of any mortgages or deeds of trust encumbering the Project or the Property that such violation has occurred.

13. Default and Remedies.

Packet Pg. 121 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 6 14. Miscellaneous.

14.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by both Parties and recorded in the Official Records.

14.2 No Waiver. Any waiver by City of any term or provision of this Agreement must be in writing. No waiver shall be implied from any delay or failure by City to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. No failure or delay by City at any time to require strict performance by Owner of any provision of this Agreement or to exercise any election contained herein or any right, power or remedy hereunder shall be construed as a waiver of any other provision or any succeeding breach of the same or any other provision hereof or a relinquishment for the future of such election.

City: City of Gonzales
Attn: City Manager
P.O. Box 647
147 Fourth Street
Gonzales, CA 93924
With a copy to: Jarvis Fay LLP
555 12th Street, Suite 1630
Oakland, CA 94607
Attention: Michael Rodriquez
Owner: _____________________________
c/o Community Housing Improvement Systems and Planning
Association, Inc.
295 Main Street, Suite 100
Salinas, CA 93901
Attention: Director of Real Estate Development
With a copy to: Gubb & Barshay LLP
505 14th Street, Suite 405
Oakland, CA 94612
Attention: Lauren Fechter
Packet Pg. 122 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 7 14.4 Parties Not Co-Venturers; Independent Contractor; No Agency Relationship.

Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another.

14.6 Headings; Construction; Statutory References. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. All references in this Agreement to particular statutes, regulations, ordinances or resolutions of the United States, the State of California, or the City of Gonzales shall be deemed to include the same statute, regulation, ordinance or resolution as hereafter amended or renumbered, or if repealed, to such other provisions as may thereafter govern the same subject.

14.10 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. [remainder of page left intentionally blank; signature pages follow] Packet Pg. 123 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 8 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Agreement and Declaration of Restrictive Covenants as of the date first written above.

CITY:

City of Gonzales, a California municipal
corporation in the State of California,
acting by and through its City Manager
By: ____________________________
________________, City Manager
Dated: _____________________, 2022
APPROVED AS TO FORM:

By: ____________________________
Michael Rodriquez, City Attorney
OWNER:
[Insert Owner Signature Block]
Packet Pg. 124 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 9 ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Packet Pg. 125 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 10 ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Packet Pg. 126 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real 11 EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
Packet Pg. 127 Attachment: Resolution No. 2022-58 w/ Agreement (2501 : Resolution No. 2022-58 Agreement with CHISPA for Purchase and Sale of Real City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Appointment to the Planning Commission
In July, a Planning Commissioner seat became available with the resignation of Sandra Bravo. Staff prepared a customized application form and position duties description for the vacancy and posted these materials on the City website.

On August 3, 2022 we received an application from Hortencia Vargas, who has lived in Gonzales for several decades and has worked in the City of Gonzales Community Development Department and other positions within the City for 13 years.

Hortencia is well known, familiar with development and policy review and the general and specific operations and characteristics of the City of Gonzales.

In her attached application, she expresses a desire to further sustainable growth, provide for more schools and a thriving community and to conserve, “the Gonzales Way.” Please give Hortencia Vargas your consideration to fill the vacant Planning Commissioner position, as the City strives to prepare for coming policy considerations and expected development activity.

Attachments:

1. Hortencia Vargas' Application
AGENDA
ITEM
20 Packet Pg. 128
Packet Pg. 129 Attachment: Hortencia Vargas' Application (2506 : Appointment to the Planning Commission)

Gonzales City CouncilAugust 15, 2022

Gonzales City Council
August 15, 2022