Agenda packet — Gonzales City Council, August 7, 2023

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 7, 2023
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 Maria Orozco, Mayor/Chair Jose L. Rios
Youth Commissioners
Luke Naegle and Aliyah Castillo
Successor Agency Item

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/82146330729 or call 1 (669) 900-6833 and use Meeting ID: 821 4633 0729. 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 the day of the meeting to the City Clerk at [email protected]

BUSINESS FROM THE PUBLIC

2. 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.

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.

3. Approve the Joint City Council, Successor Agency, and Planning Commission - Regular Meeting - July 17, 2023 Minutes

4. Approve City Accounts Payable Warrants #48914-48968
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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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5. Consider Approval of an Agreement Between the City of Gonzales and the Transportation Agency for Monterey County for the Allocation of Funding Approved by the Transportation Agency Board of Directors; and Authorize the City Manager to Sign the Agreement

6. Consider Approval of Resolution No. 2023-55, A Resolution of the City Council of the City of Gonzales Approving a Contract with Axon Enterprises, Inc for 5 Years Not to Exceed $7,800 Per Year for the Purchase of Taser™ Equipment and Service Contract

7. Consider Approval of Resolution No. 2023-56, A Resolution of the City Council of the City of Gonzales Approving A Property Tax Transfer for the Proposed Gloria Road Agricultural Cooler Reorganization Involving Annexation of 48.97 Acres to the City of Gonzales and Detachment from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District

8. Consider Approval of an Agreement Between the City of Gonzales and Kutak Rock, LLP for Bond Counsel Services for the Community Center Complex Project, and Authorize the City Manager to Sign it

9. Consider Approval of Resolution No. 2023-57, A Resolution of the City Council of the City of Gonzales Declaring the Critical Need to Authorize GIS Plumbing, Inc. to Replace the Heater at the Community Pool for a Not-To-Exceed Cost of $81,600

REGULAR AGENDA

10. Public Hearing to Consider Adoption of Ordinance No. 2023-139, An Ordinance of the City Council of the City of Gonzales Establishing and Implementing By-District Elections (Government Code Section 34886 and Election Code Section 10010)
a) Staff Report
b) Public Hearing
c) Council Discussion
d) Council Action
Staff Recommended Action-Waive second reading, read by title only, and Adopt Ordinance No. 2023-139

11. State Water Resources Control Board (SWRCB) Grant Application to Fully Fund the Construction of Certain Improvements to Extend City Water and Sewer Service to Alpine Camp a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Authorize the City Manager to submit the grant application to the State Water Resources Control Board

12. Consider Approval of the Water and Sewer Capital Improvement Programs a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Approve the Water and Sewer Capital Improvement Programs

13. Water and Sewer Rate Study Workshop
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Receive a presentation and provide comments and feedback 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

14. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
b. Mayor Selection Committee
c. Salinas Valley Recycles
d. Measure K Oversight Committee
e. South Salinas Valley Broadband Authority

15. Oral Communications

BUSINESS FROM CITY MANAGER

16. 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.

17. The City Council will recess to Closed Session to meet with its designated representative, Mike Howard, regarding labor relations matters pursuant to Government Code Section 54957.6. The Employee Group is the International Fire Fighters Local 5388.

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.

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MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL,

GONZALES SUCCESSOR AGENCY,
AND

PLANNING COMMISSION
MONDAY, JULY 17, 2023
5:30 P.M.

CALL TO ORDER
Mayor Rios informed everyone that we were having technical difficulties with the equipment. He called the meeting to order at 5:43 PM.

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

1. 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
Maria Orozco Council/Agency Member Present
ROLL CALL - Planning Commission
Attendee Name Title Status
Gloria Velasquez Chair Present
Ernesto Mancera Chair Pro Tem Present
Myrna Morales Commissioner Present
Adrian Paco Commissioner Present
Tencia Vargas Commissioner Present

STAFF PRESENT
City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Consultant Brent Slama, Community Development Director Taven Kinison Brown, Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas, Administrative Assistant II Esthela Palmerin, Public Works Director/City Engineer Patrick Dobbins, Police Chief Keith Wise, and Fire Chief Jason Muscio.

Successor Agency Item
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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA) AGENDA
ITEM
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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/87808964262 or call 1 (669) 900-6833 and use Meeting ID: 878 0896 4262. 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. Vista Lucia Annexation Project Update
Staff Report: Consultant Brent Slama presented the staff report.

Glenn Pace, Pembrook Development Manager and Vista Lucia Project Developer, introduced Katharine Hardt-Mason.

Katharine Hardt-Mason, Pembrook Development Counsel, presented via powerpoint updating on the project type, neighborhood breakdown, land plan, land us summaries, variety of housing, first tentative map, connectivity, road network, public utilities, infrastructure construction, and maintenance financing.

Consultant Slama and Counsel Hardt-Mason answered questions and discussed timeline of LAFCO Annexation approval process, percentage of affordable housing, public facilities, programs and workshops for local residents to be purchase ready.

Public Comment: Henry Martinez Sr. commented about adding purple pipes for future recycling water and security cameras; and accessibility of low-income homes.

Rosa Rodriguez, 307 Ayrshire Way, was confident the developer would do a good job because they were good people. She wanted to see more things for the youth such as tennis courts, soccer fields and track fields. She complained about Meyer Park issues and the fire issue; and suggested better planning.

The Council and Commission received the information and concurred to continue the project process.

No action required.

The Joint City Council and Planning Commission meeting was adjourned at 6:20pm.

At this point, a five-minute recess was taken.

ADJOURNED TO REGULAR COUNCIL-SA MEETING
The Council adjourned to the regular Council and Successor Agency meeting at 6:25pm.

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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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PRESENTATIONS

3. Certificates of Recognition to the Community Health Workers City Manager Gil read the certificates and Mayor Rios presented them to the ones present.

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.

Roman Barba, 123 Second Street, requested the City ban fireworks, and commented about the different situations in his neighborhood and fireworks landing in his yard; calling the Police three times and not showing up; garage sales going on for three days; and suggested charging for the garage sale permits.

Gerardo Valdez, 496 Charolais Drive, commented about his house burning down and said he was here on behalf of his aunt that lost her life in the fire. He felt a lot of it was negligence and commented about calling regarding illegal fireworks that were going on a week prior and it is always the same people which was the circle in back of his street and getting worse every single year; Police not enforcing it; CHP harassing the family; and asked why it took long to respond.

Ruben Zurita, resident of 26 years, commented about officer patrolling issues; code enforcement issues; animal control issues; illegal firework issues; needing resources for getting more patrol on the streets, and more people needed out there to do something about these issues.

Esperanza Valdez commented in Spanish and Mr. Valdez translated for her. She spoke about her sister-in-law who passed away in the house fire; commented about her family making it out to safely; first responders getting there late; explained what she tried doing and being told to leave or she would get arrested; and asked why it so took long for first responders to get there and take action.

Cesar Ayon, Gonzales Resident, recommended banning fireworks because they are dangerous, and certain cities still allowing fireworks; suggested banning all of them because we don’t have the resources and we are in a drought; and asked why allow even a spark. He asked Gonzales to be a leader in south county and ban them.

Henry Martinez Sr. commented about his universal signal to the Captain at the 4th of July event; ex-Chief’s daughter screaming at him; freedom of speech about taking his kids from his son; filing harassment charges against the school for harassing his family; and elaborated on the past rape case and finding the person.

Steve Romero, Lifelong Gonzales Resident, commented about the fireworks booths being part of everything the youth was given growing up; football programs being free for the youth; providing and supplying for the football program like meals, equipment, practice gear; suggested taking a really good look at what can be done before considering banning fireworks; and this community always being together. He felt banning fireworks is a little too drastic and we need to see what else can be done.

Rosa Rodriguez commented about people bringing things to the table and things being done a little bit at a time; talked about fireworks last year and knowing where the fireworks were coming from. She did not blame the Police or Fire Departments but suggested a better plan and more Packet Pg. 6
Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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workshops to educate the community and clean up days and said concluded people were not cleaning their properties.

Mary Zurita commented about other alternatives to financing youth groups instead of firework sales and gave examples.

Larry Rodriguez, 50-year Gonzales Resident and Member of the Spartan 300 Club, agreed what happened was tragic, and commented about the fireworks fundraising which gives scholarships to students and helping with other things; and suggested thinking about what the Council wants to do before banning fireworks.

Ed Ramirez, High School Football Coach, expressed his condolences to the family that lost family and property; commented about the need to get more done on the illegal fireworks like use of drones; and asked to allow the football program to continue the use of safe and sane fireworks since that is how they raise the money that is used to feed the teams after the games, buy camera equipment and replace their uniforms. He asked the City to do something to prevent the illegal fireworks and not to take away the funds from the football program.

Mr. Rodriguez commented about not liking fireworks and asked the City to do something about it.

Janet Pacheco (via zoom), commented about being affected by the 4th of July fire and agreed that there should be other ways to fundraise for the students. She elaborated on the fire last year and this year’s and said banning fireworks was the best thing to do. She commented about the illegal fireworks that still happened after the holiday; thanked the Police Officers for arriving at the scene withing five minutes or less but didn’t like the way they talked to her husband. She felt the firefighters were not prepared to stop the fire; and didn’t get an update after the fire.

Henry Martinez Jr. (via zoom), was surprised hearing about banning fireworks and commented it was our freedom as a Country to use fireworks for years. He commented about fireworks not being the cause of burning the house down, but the people; suggested not banning safe and sane fireworks because money raised goes to the schools; elaborated on what property owners have to do with their rentals to keep them clean; the house that burned down having a lot of stuff that was extremely flammable; him spending his time to prep ahead of time so his house doesn’t burn down; and people needing to prep especially for the 4th of July. He hoped the City didn’t ban the fireworks because they have been a long tradition of the kids of Gonzales and to go after the people that don’t know how to use them.

CONSENT AGENDA

5. Approve the Joint City Council and Successor Agency - Budget Meeting - June 20, 2023 Minutes

6. Approve the Joint City Council and Successor Agency - Regular Meeting - June 20, 2023 Minutes

7. Approve Successor Agency Accounts Payable Warrant #1679-1680

8. Approve City Accounts Payable Warrants #48762-48913

9. City Manager’s Report

10. Community Development Department Activity Report

11. Community Engagement & Recreation Activity Report
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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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12. Police Department Activity Report

13. Public Works/City Engineer Department Activity Report

14. Consider Approval of an Agreement Between the City of Gonzales and Michelle Slade-C4 Consulting, for Rendering Services That Support Youth Leadership Development, and Authorize the City Manager to Sign the Agreement
Rosa Rodriquez pulled items 11, 12, and 13. She talked about Departments reading the reports long time ago and now they have to be pulled from the agenda to discuss them, and not agendizing items that are brought up to the table like the ones she has brought up before; and still not having a follow up meeting for Meyer Park.

Council Member Silva pulled Item 8. She had questions on warrant #48769 for American Supply which seemed a bit high for trash bags; warrants #48775, #48839, #48878 for Badger Meter, which she did not know what they were for; warrant #48800 for Ivan Martinez sleeping quarters cleaning; warrant #48805 to Monterey County Health for testing; warrant #48817 to Sage Energy; warrant #48822 to TAMC; warrant #48861 for Council chairs which seemed high for chairs; warrant #48842 to California Consultant and another one for Armanasco.

For warrant #48769, Public Works Director Dobbins indicated he will follow up with her to find out what that is for.

For warrants #48775, #48839, #48878, Public Works Director Dobbins responded staff has been upgrading the meters at the industrial park and replacing new registers.

For warrant #48805, Public Works Director Dobbins responded that was for a series of testing around the industrial treatment program.

For warrant #48800, Fire Chief Muscio responded that was for the cleaning where the fire staff sleep and was for deep cleaning after so many years.

For warrant to California Consulting and Armanasco, City Manager Gil responded staff renegotiated the Armanasco Contract and lowered their fee for services and not only support grant writing but writing stories, information out to the media, press releases, etc. The California Consulting one was a contract that was established on a short-term basis by the previous City Manager and wrapped up in June, but they are no longer in contract with us.

For warrant #48817, Public Works Director Dobbins responded they support the EV charging station grants. The location for the three different charging stations is downtown, Community Center, and Salinas Valley Clinic.

For warrant #48822, Public Works Director Dobbins responded those amounts were passthrough amounts to other agencies.

Community Development Director Kinison Brown added the applicant pays the City and the City forwards to TAMC.

For warrant # 48861, Public works Director Dobbins responded those are for several invoices for chairs in the Council Chambers, City Hall and furniture in the conference room, and they lagged on their billing for months.

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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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Council Member Silva suggested for the future, the descriptions should match.

Public Works Director Dobbins mentioned that the Accounting Department sometimes use one description from one invoice instead of all the invoices.

City Manager Gil indicated that the reason why that is done is because it’s much easier to cut one check versus several checks.

Council Member Silva understood but suggested better descriptions. She thanked staff for all the explanations.

City Manager Gil mentioned that staff can do descriptions clarifying is for multiple invoices so the Council knows is for more than one invoice.

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

REGULAR AGENDA

15. Public Hearing to Consider Approval of Resolution No. 2023-44, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2023-2024 - California Breeze Benefit Assessment District Nos. 1, 2 and 3; and Resolution No. 2023-45, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2023-2024 - California Breeze Parks and Open Spaces Maintenance Assessment District Mayor Pro Tem Funk recused himself from this item.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 7:26pm.

Public Hearing: Rosa Rodriguez, 307 Ayrshire Way, commented about the amounts being charged to residents; and requested fixing the rest of the issues and asked when the follow-up meeting is going to be. She didn’t approve of anymore increases and she is at the point of doing collective lawsuits because areas haven’t been fixed.

City Attorney Rodriquez informed the problem we have with this particular district is that we are not collecting enough money to pay for the work that needs to be done. There has to be some consideration in some future assessments that will increase assessments, otherwise we will continue to not be able to do the work that needs to be done. He added that the City is subsidizing now the works that needs to be done in this subdivision and it’s unfair for those folks that live in other assessment districts.

Mayor Rios closed the public hearing at 7:31pm.

Council Discussion: Mayor Rios commented about having to be realistic as a Council if we're subsidizing that particular area, and asked if there was a way to fix the assessments to fix the annual cost.

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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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City Attorney Rodriquez responded there was not. When they formed them, it didn't allow for the increase. The only way we can increase is to have a vote of the homeowners.

Mayor Rios hoped we as a City, don't keep spending any more money than we're collecting from the homeowners and if there are more things needing repairs in that park or area, it has to be up to the residents if they want to fix that or not.

Council Member Orozco suggested getting a report back as to what we are subsidizing and what the process would be to put this back to the property owners of that area to vote.

RESULT: APPROVED [4 TO 0]
MOVER: Lorraine Worthy, Council Member
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco RECUSED: Scott Funk

16. Public Hearing to Consider Approval of Resolution No. 2023-46, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2023-2024 - Canyon Creek Benefit Assessment District Nos. 1, 2 and 3; and Resolution No. 2023-47, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2023-2024 - Canyon Creek Parks and Open Spaces Maintenance Assessment District Nos. 1, 2 and 3
Council Members Worthy and Orozco recused themselves from this item.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 7:36pm.

Public Hearing: Rosa Rodriguez, 307 Ayrshire Way, mentioned she's going to be affected equally even though she doesn't live in this area because of the CPI increasing in all the areas. She said residents in this side of town should be included as well to be treated equally.

City Attorney Rodriquez responded that was not correct and clarified everyone pays the cost of inflation.

Mayor Rios added that in this side of town, they've probably paid ten times over.

Mayor Rios closed the public hearing at 7:39pm.

Council Discussion: There was none.

RESULT: APPROVED [3 TO 0]
MOVER: Liz Silva, Council Member
SECONDER: Scott Funk, Mayor Pro Tem
AYES: Jose L. Rios, Scott Funk, Liz Silva
RECUSED: Lorraine Worthy, Maria Orozco
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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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17. Public Hearing to Consider Approval of Resolution No. 2023-48, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2023-2024 - Gonzales Industrial Park Benefit Assessment District; and Resolution No. 2023-49, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2023- 2024 - Gonzales Industrial Park Landscape Maintenance Assessment District Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 7:25pm.

Public Hearing: No comments came forward.

Mayor Rios closed the public hearing at 7:25pm.

Council Discussion: There was none.

RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Council Member
SECONDER: Scott Funk, Mayor Pro Tem
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco

18. Public Hearing to Consider Approval of Resolution No. 2023-50, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2023-2024 - Cipriani Estates Benefit Assessment District; and Resolution No. 2023-51, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2023-2024 - Cipriani Estates Parks and Open Spaces Maintenance Assessment District Mayor Rios recused himself from this item.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Pro Tem Funk opened the public hearing at 7:40pm.

Public Hearing: Rosa Rodriguez, 307 Ayrshire Way, commented about fixing problems from years ago like making things accessible for everyone to be safe. She wanted to make sure everybody is treated fairly and not have some people pay more than others.

Mayor Pro Tem Funk closed the public hearing at 7:42pm.

Council Discussion: There was none.

RESULT: APPROVED [4 TO 0]
MOVER: Liz Silva, Council Member
SECONDER: Maria Orozco, Council Member
AYES: Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco RECUSED: Jose L. Rios
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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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19. Consider Approval of Resolution No. 2023-54, A Resolution of the City Council of the City of Gonzales Approving and Accepting the Gonzales Police Department’s AB 481 Fiscal Year 2022- 2023 Annual Military Equipment Report Pursuant to Government Code Section 7071(d) and Renewing City of Gonzales Ordinance No. 2022-131 “Approving Gonzales Police Department Policy Manual Policy 709-Military Equipment
Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public engagement at 7:49pm.

Public Hearing: Rosa Rodriguez said last year she talked about shot spotter and drones. She felt funding should be included in the budget for shot spotters and drones so officers can do their job.

Mayor Rios closed the public engagement at 7:50pm.

Council Discussion: Council Member Worthy asked if staff knew how much the drones cost and how many would the City need.

Police Chief Wise responded for law enforcement use drones, they cost between $25,000 - $35,000 and we would need about 15. He elaborated on exploring the training and staff pursuing possible grants.

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

BUSINESS FROM CITY COUNCIL

20. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
No report.
b. Association of Monterey Bay Area Governments
Mayor Pro Tem Funk mentioned they are dark in July, and Council Member Orozco attended the last meeting on his behalf.
c. City & School Joint Steering Committee
City Manager Gil announced the joint meeting on Tuesday, August 8, 2023 at 5:30pm at the school.

21. Oral Communications
Council Member Worthy talked about the things that were brought up this evening and understood emotions were high. She has the illegal fireworks problem in her neighborhood as well, and shared that whenever the call is made to report something, they will ask them if they would like the Officer to contact them, but if people say no, then the Officer will not contact the person. She feels the fear of her house catching on fire also, and told everyone that we need to respect each other in this community because it's about respect, and we are not doing it by lighting these fireworks not only in July, but during other holidays, and their music being loud as well. She said people are afraid to say things because of retaliation, and these illegal fireworks are upsetting and terrifying, and affect people and animals. She commended Football Coach Eddy for coming out and assisting the American Legion with moving the chairs and said the kids were amazing. She also thanked Chief Wise, City Manager Gil and Public Works Director Dobbins for taking care of an issue that was bothering her. She understood we have things that we need to work on but we are financially Packet Pg. 12
Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

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strapped and we need to be aware of that, and it means neighbors need to get involved, call, and hold the neighbors accountable. She wanted everyone to know the Council cares and wants things to happen but we need to be patient.

Council Member Silva agreed with Council Member Worthy and told everyone we need to respect each other and there are a lot of good things that happened like the 4th of July event where everyone came together and had fun. She encouraged the residents to fill out the survey they received in the water bill, because without their input, the Council can’t know what people are thinking. She said they want to make Gonzales even better than it is and continue to be the jewel of this valley. She agreed some bad things unfortunately happen, and felt sad about what happened and there should be no reason to lose a life. She announced the California Rodeo Salinas and asked everyone to be safe.

Mayor Pro Tem Funk mentioned the 4th of July was a great event with a lot of positivity and thanked all the volunteers who help every year, the Martinez family, and all the new volunteers.

He thanked staff and Public Works crew as well as the Police and Fire Departments for doing an amazing job throughout the day. He expressed his condolences to the Valdez Family for the tragic fire. He believed there will be a lot of changes this year and the Council will look at various things in the next few months to determine what is the right action to take. He said some comments tonight made him sad. He talked about the calls that go to the County and he has seen the data, and our Officers and Firefighters were amazing. The Officers responded under two minutes and Fire Department was there minutes later. The sad thing tonight is that we heard that the fire started much earlier and it saddens him that people did not call 911. He heard people saying they called but that was not true because we can’t cover the 911 data since County data shows that the house fire, not fireworks, upon that being called in, our Police Department was there under two minutes and Fire Department was there minutes later. He said we had an amazing response time and unfortunately when the Fire Department got there, the blaze was quite crazy. He could only imagine the fire experience and wouldn’t put that on anyone and we had a tragedy, but commended our departments for the response which the data shows, and they’ve been working ever since with the residents and community to follow up on that. He concluded that they will continue to work on opportunities and to address what the Council can do. He agreed with being about respect and one of those is about calling in like for fireworks. There were a number of citations written, and unfortunately Officers can’t be everywhere at the same time but they were out there writing citations. It was a tragedy and a loss of life, and at the same time we look at the situation and aftermath and it’s a miracle we didn’t lose more homes, which comes back to the amazing training and dedication our Firefighters had, as well as the support that was received.

Council Member Orozco echoed her colleagues’ comments and thanked our Fire and Police Departments for the great work they continue to do everyday in serving our community. She said the 4th of July was a great event and it sadly ended in tragedy. She thanked the Rotarians for a great event and encouraged everyone to volunteer, and they don’t have to be Rotarians. She announced the Rotary Golf Tournament on August 12th where they will be doing silent auction items and she’s collecting gifts for anyone that would like to donate as this is a fundraiser for scholarships.

She announced the St. Theodore’s Annual Carnival on October 8th. She said she was contacted by Supervisor Lopez’s Office to ask if she could join the Housing Authority Board and she will be sworn in at the Board of Supervisors’ next meeting. She also thanked the Community Health Workers for all their work throughout the years, especially during Covid and for their commitment and dedication in working with the Fire Department to get the services to our residents. They were a tremendous asset in our City and also helping with the Pajaro floods, and it will be a big gap for us trying to do the work that they used to do, but City Manager Gil has a great staff and we will move forward.

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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

Page 11 of 12 ends

Mayor Rios talked about the dead trees on Alta and Fifth Streets that need to be replaced and hoped they were on the Public Works Department’s to do list. The other item was encroachments on Fourth Street which are the parking spaces taken by the restaurants when they had outside dining, and it would be nice to get that space due to traffic, or set an encroachment fee from the businesses. He also talked about a possible encroachment permit with Valdez Auto Sales as revenue. He shared his concern about code enforcement and several trailers parked on driveways with extension cords. He said it shouldn’t be allowed because of safety concerns like fires. He asked staff if we can hire someone temporarily to do code enforcement.

City Manager Gil informed we have Taven back now, as well as 4Leaf Consulting who are doing code enforcement around illegal structures, and they have been great. She added we may want to look at enhancing the services to do more because she has been hearing a lot of code enforcement issues, but Minnie, who the Council met about two meetings ago, has been marvelous and very busy with that, and she’s in the office two days a week, but we’ll look at increasing that.

Mayor Rios apologized for not being here for the 4th of July event which he heard it was a success and everyone had a good time. He thanked staff for all their work and he knows is a thankless and underpaid job but he appreciated their work.

BUSINESS FROM CITY MANAGER

22. Oral Communications
City Manager Gil expressed her condolences to the Valdez Family and said we as a community, are hurting for the events of that night and our hearts go out to them. She echoed the Council’s comments and thanked staff for doing all they could to control the flames and making sure they didn’t jump to other homes, which was remarkable, and commended their work. She announced the Circus Royale coming back to town on August 2nd to set up and open to the public on August 4 th
, and they’re going through the permit process and once the requirements are completed, staff will advertise and invite the community to attend. She thanked Rotary for putting on the 4th of July event which she really enjoyed and it was a success. She reminded everyone about water shutoffs starting on July 25th and if people got a notice, they need to contact City Hall to establish a payment plan before then. She said staff sent a few notices already as well as placing at doorsteps.

She also reminded the Council about the joint meeting with the School Board on August 8th at 5:30pm. She added Wings of Knowledge will be coming to the Council with a presentation at the August 21st meeting. Armanasco will also be presenting some of the work they have been doing at the first meeting in September. She also said the Council will hear a presentation of the Draft Housing Element at the August 21st meeting. She reiterated what Council Member Silva said about encouraging people to fill out the survey they received with the water bills which may support future housing funding for the City. Hard copies will be available in English and Spanish at City Hall and people can contact Alejandra if they have any questions.

Police Chief Wise announced the National Night Out on August 1st from 6:00pm-8:00pm on Fourth Street. He informed that the Police Department received 49 calls for service regarding illegal fireworks between April 1st- July 4th. Officers were able to respond to 18 of the 23 calls received of reported illegal fireworks on the 4th of July, utilizing the best policing and enforcement practices and were available to respond to other pressing public incidents calls for service during that same time frame. He stated that although the Police Department forecasted and deployed additional resources and Officers in response to the anticipated volume of fireworkrelated calls, fireworks still represented a clear and present danger. He said that although not yet proven, it is suspected that illegal fireworks caused a residential fire that resulted in the loss of a life and a family being displaced from their home in the 400 block of Charolais Drive, which case is still an open on going multi jurisdiction investigation that he can’t discussed until completed.

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Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA)

Page 12 of 12 ends

He informed that the Police Department staggered officers throughout the 4th of July day and aimed to provide support and enforcement related to fireworks activity. The department again deployed a four-prong strategy that emphasized education, safety, police visibility, and enforcement leading up to the evening of the 4th of July. The additional officers aided and supplemented regularly scheduled officers, providing support at the July 4th celebration, parade detail, and response to calls for service. On that day, the Police Department received many calls for service regarding fireworks which generated a total of 23 firework calls for service and elaborated on the areas. On July 4, 2023 the Police Department received an overall total of 61 calls for service, a 56% increase from the previous year. Similarly, calls for service ranged from disturbances, civil matters, reckless vehicles, a DUI arrest, as well as fireworks. Officers were able to immediately respond to all but five illegal firework-related service calls while maintaining policing services. He mentioned that typically, in firework-related calls for service, the reporting party does not want police contact. For most calls for services related to fireworks, only a general area of the fireworks is provided. Seldom is a person’s physical description or address provided.

In these instances, officers, at a minimum, conducted an area check to locate the firework source, a standard practice. Without a reporting party making identification of an offender, in most cases, officers must view the event to take enforcement action. Officers documented several illegal fireworks cases and seized approximately 30 pounds of fireworks this year, and of those documented cases, five people received citations that were forwarded to the Monterey County District Attorney’s Office for prosecution, and he elaborated on the areas. The confiscated fireworks will later be destroyed in coordination with the Fire Department. All but one citation was a result of Officers on viewing of the illegal fireworks and offenders. One citation was issued as a result of a community member coming forward and identifying the offender. Three of the citations were issued in the neighborhood of the residential fire on Charolais Drive.

He added that drones are becoming more common in law enforcement and could be deployed in a variety of situations including firework source identification, early detections, education and enforcement. The Police Department had previously explored a drone program to aid in the enforcement of the firework related calls and for other law enforcement purposes, but funding proved to be an obstacle. He concluded that staff will continue to be vigilant in future opportunities to secure drone technology funding to use in multi-purposes.

ADJOURNMENT
The meeting was adjourned at 8:33 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 15
Minutes Acceptance: Minutes of Jul 17, 2023 5:30 PM (CONSENT AGENDA) Check Register Report
City Of Gonzales
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 9:27 am
Date: 07/21/2023
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
48914 07/21/23 Printed 4343 4LEAF, INC. Building Plan Review Services June 2023 1,072.44 48915 07/21/23 Printed 108 AIRGAS Propane for Forklift 161.45 48916 07/21/23 Printed 3033 ASAP SIGNS & PRINTING Supplies 107.70 48917 07/21/23 Printed 3805 BADGER METER INC. Meters/Industrial 1,358.84 BANUELOS ENTERPRISES, 132.22
INC.
48918 07/21/23 Printed 1054 Fuel
CREATIVE SERVICES OF 525.95
NEW
48919 07/21/23 Printed 3232 Community Policing& Engagement Junior Officer Badge Stickers
48920 07/21/23 Printed 3095 CSG CONSULTANTS INC. Building Inspection Services June 2023 665.00 48921 07/21/23 Printed 3028 D & J TIRE SERVICE Tires 1,692.34 48922 07/21/23 Printed 1410 DEPARTMENT OF JUSTICE Livescans 582.00 48923 07/21/23 Printed 1771 EMPLOY AMERICA Janitorial & Carwash Services 1,000.00 48924 07/21/23 Void 07/21/23 Misprinted Check 0.00
48925 07/21/23 Void 07/21/23 Misprinted Check 0.00
48926 07/21/23 Printed 3228 HARRIS & ASSOCIATES, INC. AD Engineer Reports May 28 - July 1, 4,223.00 2023
48927 07/21/23 Printed 2818 JARVIS FAY LLP. Assessment District Work 20,908.57 LECHOWICZ & TSENG 10,515.00

MUNICIPAL
48928 07/21/23 Printed 4320 Water/Sewer Rate Study June 2023 MONTEREY COUNTY 7,648.75

SHERIFF
48929 07/21/23 Printed 23 CJIS April-June 2023
48930 07/21/23 Printed 3247 NHA ADVISORS LLC Community Center Finance 975.00 48931 07/21/23 Printed 91 P. G. & E. Utilities - Acct# 1024308210-3 June 2023 11,329.88 PUBLIC AGENCY 491.95

RETIREMENT
48932 07/21/23 Printed 3194 PARS Admin Fees - May 2023
48933 07/21/23 Printed 4166 SAGE RENEWABLE ENERGY EV Charging Stations PM June 2023 5,583.75 SALINAS VALLEY SOLID 30,459.29
WASTE
48934 07/21/23 Printed 258 Tonage Fees June 2023
48935 07/21/23 Printed 2685 SC FUELS Fuel
48936 07/21/23 Printed SWINERTON SWINERTON BUILDERS PM Services June 2023 435.59
40,243.24
48937 07/21/23 Printed 27 TRI - CITIES DISPOSAL Drop Box Fees 1,267.90 48938 07/21/23 Printed 3577 U.S. BANK 7/6/23 Fire Dept. Acct # 4866 9145 5550 488.35 8537
48939 07/21/23 Printed 3410 ULINE, INC. Gloves & Disinfectant Wipes Kid Power 244.77 48940 07/21/23 Printed 3471 VERIZON WIRELESS Cellphones - June Acct # 304.08 742128049-00001
48941 07/21/23 Printed 99 VOSTI'S, INC. Vehicle Repair/Maint. 1,816.75 GONZALES ACE HARDWARE 91.63
INC.
48942 07/21/23 Printed 3274 Grounding Connector Return
GREEN VALLEY FARM 130.28
SUPPLY
48943 07/21/23 Printed 1319 Gloves
Total Checks: 30 Checks Total (excluding void checks): 144,455.72 Total Payments: 30 Bank Total (excluding void checks): 144,455.72 Total Payments: 30 Grand Total (excluding void checks): 144,455.72 Packet Pg. 16
Attachment: Warrants #48914-48968 (2784 : Approve City Accounts Payable Warrants #48914-48968) AGENDA
ITEM
4 Check Register Report
City Of Gonzales
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 11:57 am
Date: 07/21/2023
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
48944 07/21/23 Printed 4356 PETER AGUILAR JR. Adult Softball Umpire Services 360.00 48945 07/21/23 Printed 137 AMERICAN SUPPLY CO. Janitorial Supplies 207.39 ANDERSEN'S LOCK & SAFE, 26.77
INC
48946 07/21/23 Printed 158 Duplicate Keys
48947 07/21/23 Printed 911 ANDREWS BLUEPRINT INC High Level Design & CA Breeze 33.87 48948 07/21/23 Printed 390 CITY OF SOLEDAD Emergency Spill Response Plan 450.00 48949 07/21/23 Printed 3028 D & J TIRE SERVICE Patrol Car Tires Replaced 240.00 DE LAGE LANDEN PUBLIC 23,748.83

FINANCE
48950 07/21/23 Printed 2895 Solar Loan
48951 07/21/23 Printed 4360 GIS PLUMBING INC. Heater Repair/Maint. 675.00 48952 07/21/23 Void 07/21/23 Void Check 0.00
GONZALES ACE HARDWARE 301.03
INC.
48953 07/21/23 Printed 3274 Flag - Rec, Whistle, & Ties for Banners GONZALES TIRE & AUTO 13.33
SUPPLY
48954 07/21/23 Printed 3477 Vehicle Maint. Supplies
GREEN VALLEY FARM 76.55
SUPPLY
48955 07/21/23 Printed 1319 Post Hole Digger &Pest Control 48956 07/21/23 Printed 2450 ANGEL H. JOHNSTONE Consulting Services Business Loans 14,644.07 48957 07/21/23 Printed 2423 JUAN MENDOZA Reimb. Debriefing Refreshments 28.67 48958 07/21/23 Printed 72 MISSION UNIFORM SERVICE Towels 374.13 MONTEREY COUNTY 66,282.13

EMERGENCY
48959 07/21/23 Printed 470 1st Quarter County Comm. FY 2023/24 48960 07/21/23 Printed 245 MONTEREY COUNTY HEALTH Annual Permit FA0813052 5,395.00 48961 07/21/23 Printed 44 POSTMASTER PO Box Fee Box # 647 354.00 48962 07/21/23 Printed 4092 RAZZO LINK, INC. Internet Service (Pool) 75.09 48963 07/21/23 Printed 2685 SC FUELS Fuel 573.90
48964 07/21/23 Printed 2673 SPECTRUM Internet Services Acct # 8203 11 680 476.00 0002976
48965 07/21/23 Printed 3814 TRINIDAD JUSTIN TAVAREZ Youth Flag Football Referee 75.00 48966 07/21/23 Printed 3880 THE MAYNARD GROUP Video Conference 284.49 48967 07/21/23 Printed 99 VOSTI'S, INC. PD Fleet Oil 2,470.60 Total Checks: 24 Checks Total (excluding void checks): 117,165.85 Total Payments: 24 Bank Total (excluding void checks): 117,165.85 Total Payments: 24 Grand Total (excluding void checks): 117,165.85 Packet Pg. 17
Attachment: Warrants #48914-48968 (2784 : Approve City Accounts Payable Warrants #48914-48968) Check Register Report
City Of Gonzales
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 11:41 am
Date: 08/02/2023
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
48968 07/31/23 Printed 2167 DEPARTMENT OF TREASURY Qtrly Federal Excise Tax Return 111.00 Total Checks: 1 Checks Total (excluding void checks): 111.00 Total Payments: 1 Bank Total (excluding void checks): 111.00 Total Payments: 1 Grand Total (excluding void checks): 111.00 Packet Pg. 18
Attachment: Warrants #48914-48968 (2784 : Approve City Accounts Payable Warrants #48914-48968) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 7, 2023
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Agreement with TAMC for Funding Allocation

RECOMMENDATION
Staff recommends the City Council approve an Agreement between City of Gonzales and the Transportation Agency for Monterey County for the Allocation of Funding Approved by the Transportation Agency Board of Directors; and authorize the City Manager to Sign the Agreement.

BACKGROUND
The Transportation Agency for Monterey County (TAMC) passes federal and state funds through to the County of Monterey and cities including Gonzales. The Funding Agreement with TAMC memorializes the conditions and requirements for the use of different funding sources.

REVIEW AND ANALYSIS
TAMC issues a new funding agreement every three years, corresponding with the cycle for RSTP fair share and RSTP competitive funding. The city was allocated $52,924 in RSTP fair share funding and the city needs to execute this funding agreement to receive those funds.

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.

Explain: This agreement with TAMC allows the city to receive State and Federal Funding for our roadway improvement projects.

AGENDA
ITEM
5 Packet Pg. 19
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.

Explain: Using state and federal funds to maintain and enhance the quality of life in Gonzales is part of these efforts.

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: This agreement is required to receive other funds to keep the community services costeffective.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: This agreement is part of the fiscal policy required for proper use of funds. Following federal audit guidance, requires this document to show approval, intent, and action is consistent.

ALTERNATIVES
The City of Gonzales could determine that local funds alone can be used for transportation planning and projects. This is not the staff recommended approach.

BUDGET IMPACT
Approval of this agreement will allow the city to receive funds from TAMC including the current allocation of $52,924 in RSTP Fair Share funding.

CONCLUSION
Staff recommends the City Council approve an Agreement between the Transportation Agency for Monterey County and the City of Gonzales for the Allocation of Funding Approved by the Transportation Agency Board of Directors; and authorize the City Manager to Sign the Agreement.

Attachments:

1. TAMC Funding Agreement
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AGREEMENT BETWEEN THE

TRANSPORTATION AGENCY FOR MONTEREY COUNTY

AND THE CITY OF GONZALES

FOR THE ALLOCATION OF FUNDING APPROVED BY

THE TRANSPORTATION AGENCY BOARD OF DIRECTORS
This agreement is made on _____________ by and between the City of Gonzales, a public body, hereinafter referred to as “Recipient,” and the Transportation Agency for Monterey County, hereinafter referred to as “TAMC.”
WHEREAS, TAMC is the state-designated Regional Transportation Planning Agency for Monterey County; and
WHEREAS, as authorized by section 182.6(g) of the Streets and Highways Code, TAMC has entered into a separate agreement with the State of California, through the Department of Transportation (Caltrans), to assign a defined portion of its annual federal Surface Transportation Block Grant Program (STBGP) apportionment to Caltrans in exchange for state funds for specified fiscal year(s); and
WHEREAS, TAMC is authorized to use these exchanged funds (hereinafter referred to as “RSTP Exchange Funds”) to assist local agencies to promote projects which otherwise qualify for STBGP funds; and
WHEREAS, as authorized by Chapter 2, Title 21, Rule 6640 of the Transportation Development Act, one of the duties of TAMC is to administer the provisions of the Transportation Development Act in apportioning Local Transportation Funds (LTF) for the Transportation Development Act 2% (TDA 2%) program for bicycle and pedestrian projects pursuant to Article 3 of that law, and to the Cities, County, and Monterey-Salinas Transit; WHEREAS, as authorized by the Joint Powers Agreement for the Monterey County Regional Development Impact Fee Agency, TAMC is designated to administer and allocate regional development impact fee revenues (RDIF) to projects identified in the approved Strategic Expenditure Plan; and
WHEREAS, the TAMC Board of Directors has approved the allocation of funds toward the projects listed in Exhibit A; and
WHEREAS, it is contemplated by TAMC and the Recipient that the amount of funding and the projects designated in Exhibit A may change from time to time as set forth below; and WHEREAS, TAMC has requested the Monterey County Auditor-Controller to establish a separate fund for the Federal Apportionment Exchange Program and such a separate fund has been established.

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Attachment: TAMC Funding Agreement (2781 : Agreement with TAMC for Funding Allocation) NOW, THEREFORE, in consideration of the mutual covenants contained herein, THE PARTIES HERETO AGREE AS FOLLOWS:

1. RULES FOR RSTP EXCHANGE FUNDS
A. TAMC agrees to allocate RSTP Exchange Funds paid by Caltrans under the Federal Apportionment Exchange Program only for projects as authorized under sections 133(b) and 133 (c) of Title 23, United States Code and Article XIX of the California State Constitution.

B. The Recipient agrees to use RSTP Exchange Funds only for the RSTP Exchange eligible project(s) described in Exhibit A, as approved by the TAMC Board of Directors, for the amounts awarded for each project.

2. RULES FOR TDA 2%
A. TAMC agrees to allocate TDA 2% funds under the Transportation Development Act only for projects as authorized under the Transportation Development Act Section 99234 Claims for Pedestrian and Bicycle Facilities.

B. The Recipient agrees to use TDA 2% funds only for TDA 2% eligible project(s) described in Exhibit A, as approved by the TAMC Board of Directors, for the amounts awarded for each project.

3. RULES FOR RDIF
A. TAMC agrees to allocate RDIF funds under the Joint Powers Agreement only for projects as authorized by the TAMC Board of Directors in the approved Strategic Expenditure Plan.

B. The Recipient agrees to use RDIF funds only for RDIF eligible project(s) described in Exhibit A, as approved by the TAMC Board of Directors, for the amounts awarded for each project.

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Attachment: TAMC Funding Agreement (2781 : Agreement with TAMC for Funding Allocation)

4. ADMINISTRATIVE POLICIES
A. The projects described in Exhibit A, and the amounts allocated therefore, may be amended from time to time without changing the rest of this Master Agreement, by means of approval by the TAMC Board of Directors of a revised Exhibit A, which shall be designated by a date and number (e.g., “Exhibit A-1 (DATE)”).

B. The Recipient agrees to submit an annual report to TAMC by April 30 describing the progress towards completion for all projects listed in Exhibit A.

C. The Recipient agrees to mention TAMC’s role in funding the project in any press releases or media events held by the Recipient to promote a funded project.

D. TAMC agrees to reimburse the Recipient within 30 days of receipt of a completed claim form (Exhibit B) from the Recipient.

E. The Recipient agrees to cause the completion of the project(s) within three years from the date funds were awarded by the TAMC Board of Directors, as recorded in Exhibit A. Failure to complete the project(s) in a timely basis shall allow TAMC to refuse reimbursement and to reprogram such funds for other purposes.

5. COST PRINCIPLES
A. Recipient agrees to comply with Office of Management and Budget Circular A-87, Cost Principles for State and Local Government, and 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements.

B. Recipient agrees to:
(a) use Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., to determine the allowability of individual project cost items; and
(b) comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Costs Principles and Audit Requirements.

Every sub-recipient receiving funds as a contractor or sub-contractor under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Costs Principles and Audit Requirements.

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Attachment: TAMC Funding Agreement (2781 : Agreement with TAMC for Funding Allocation)

6. THIRD PARTY CONTRACTING
A. Recipient shall not award a construction contract over $10,000 or other contracts over $25,000 on the basis of a noncompetitive negotiation for work to be performed using Funds without the prior written approval of Caltrans. This provision shall not apply to professional service contracts of the type which are required to be procured in accordance with Government Code Sections 4525 (d), (e), and (f).

B. Recipient agrees that travel and per diem reimbursements and third-party contract reimbursements to subcontractors will be allowable as project costs only after those costs are incurred and paid for by the subcontractors and only if consistent with Paragraph 10, below.

C. In addition to the above, the pre-award requirements of third party contractor/ consultants with Recipient shall be consistent with Local Program Procedures as published by Caltrans.

7. ACCOUNTING SYSTEM
Recipient, its contractors and subcontractors, shall establish and maintain an accounting system and records that properly accumulate and segregate expenditures by line item.

The accounting system of Recipient, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment claims.

8. RIGHT TO AUDIT
For the purpose of determining compliance with Public Contract Code 10115, et seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et seq., when applicable and other matters connected with the performance of the Agreement pursuant to Government Code 8546.7, Recipient shall maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of the Agreement, including but not limited to, the costs of administering the Agreement. All parties shall make such materials available at their respective offices at all reasonable times during the Agreement period and for three years from the date of final payment under the Agreement. The state, State Auditor, TAMC, FHWA, or any duly authorized representative of the Federal Government shall have access to any books, records, and documents of Consultant and its certified public accountants (CPA) work papers that are pertinent to the Agreement and indirect cost rates (ICR) for audit, examinations, excerpts, and transactions, and copies thereof shall be furnished if requested. Subcontracts in excess of $25,000 shall contain this provision.

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Attachment: TAMC Funding Agreement (2781 : Agreement with TAMC for Funding Allocation)

9. TRAVEL AND SUBSISTENCE
Payments to Recipient for travel and subsistence expenses of Recipient forces and/or its contractors or subcontractors, claimed for reimbursement or applied as local match credit, shall not exceed rates authorized to be paid exempt non-represented State employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced are in excess of those authorized DPA rates, then Recipient is responsible for the cost difference and any overpayments shall be reimbursed to the TAMC on demand.

10. PROJECT COMPLETION
Recipient agrees to provide to the TAMC a short report summarizing total project costs and milestones, including before and after photos of the project, for each project within sixty (60) days of completion.

11. GOVERNING LAWS
This Agreement shall be construed and enforced according to the laws of the State of California, and the parties hereby agree that the County of Monterey shall be the proper venue for any dispute arising hereunder.

12. CONFLICT OF INTEREST
Recipient warrants that it presently has no interest and shall not acquire any interest during the term of this Agreement, which would directly or indirectly conflict in any manner or to any degree with its full and complete performance of all services under this Agreement.

13. CONSTRUCTION OF AGREEMENT
The parties agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any exhibit or amendment. To that end, it is understood and agreed that this Agreement has been arrived at through negotiation, and that neither party is to be deemed the party which prepared this Agreement within the meaning of Civil Code Section 1654. Section and paragraph headings appearing herein are for convenience only and shall not be used to interpret the terms of this Agreement.

14. WAIVER
Any waiver of any term or condition hereof must be in writing. No such waiver shall be construed as a waiver of any other term or condition herein.

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Attachment: TAMC Funding Agreement (2781 : Agreement with TAMC for Funding Allocation)

15. SUCCESSORS AND ASSIGNS
This Agreement and all rights, privileges, duties and obligations hereunder, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns and heirs.

16. TIME IS OF THE ESSENCE
The parties mutually acknowledge and agree that time is of the essence with respect to every provision hereof in which time is an element. No extension of time for performance of any obligation or act shall be deemed an extension of time for performance of any other obligation or act, nor shall any such extension create a precedent for any further or future extension.

17. EXECUTION OF AGREEMENT
Any individual executing this Agreement on behalf of an entity represents and warrants that he or she has the requisite authority to enter into this Agreement on behalf of such entity and to bind the entity to the terms and conditions hereof. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

18. ENTIRE AGREEMENT
This document, including all exhibits hereto, constitutes the entire agreement between the parties, and supersedes any and all prior written or oral negotiations and representations between the parties concerning all matters relating to the subject of this Agreement.

19. TERMINATION DATE
This Agreement shall remain in effect for a period of three (3) years from the date of this Agreement.

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Attachment: TAMC Funding Agreement (2781 : Agreement with TAMC for Funding Allocation) IN WITNESS WHEREOF, TAMC and Recipient execute this Agreement as follows:

TRANSPORTATION AGENCY FOR MONTEREY COUNTY
_________________________________ ___________
Todd Muck Date
Executive Director
Recipient:

CITY OF GONZALES
_______________________________ ___________
Carmen Gil, City Manager Date
Approved as to Form:
_______________________________ ___________
Robert Brayer Date
TAMC Counsel
_______________________________ ___________
City Attorney Date
City of Gonzales
Packet Pg. 27
Attachment: TAMC Funding Agreement (2781 : Agreement with TAMC for Funding Allocation) City of Gonzales

POLICE DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 7, 2023
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution 2023-55, Contract with Axon Enterprises, Inc. for the Purchase of Taser Equipment and Service Contract

RECOMMENDATION
Staff recommends the City Council approve Resolution No. 2023-55, A Resolution of the City Council of the City of Gonzales approving a Contract with Axon Enterprises, Inc. for 5 years, not to exceed $7,800 per year for the purchase of Taser™ equipment and service contract.

BACKGROUND
The Gonzales Police Department has used Taser™ equipment for many years. The last equipment contracts with Axon Enterprises™ purchased was in 2018. Several units need repairs while others need replacement. This was a five year contract that expired in 2022 under resolution 2018-58.

Gonzales Police Department Policy 310 approved by the City Council says, “Tasers are issued for use during a member’s current assignment” (policy attached). Taser™ is a trademarked name. The only company that makes Tasers is Axon Enterprises, Inc.

REVIEW AND ANALYSIS
Using the model approved for computer equipment and the phone system, a five-year lease purchase that includes maintenance from the manufacturer is being recommended here. The Tasers and associated equipment are being considered a working system in this contract and the manufacturer is maintaining the AGENDA
ITEM
6 Packet Pg. 28
system for the next five years, at which time this type of arrangement will need to be renewed to again replace the equipment.

The cost of the purchase and maintenance of twelve (12) units as shown in the attached contract, is $3,452.40 the first year; and $7,767.88 for the next four yearly payments totaling $34,523.86. The quote is attached.

Taser International, Inc. became Axon Enterprises, Inc. This proposed contract is with the equipment manufacturer, Axon Enterprises, Inc.

The usual individual item purchases or group purchase were explored by the department. Ongoing maintenance was also explored to insure equipment was well maintained in the future. Staff recommends the proposed lease purchase stretched over five (5) years, the same time as the manufacturer’s service warranty covered by this program.

Gonzales City Code (GCC) requires public bidding for purchases over $5,000 (GCC 3.16.050 A. 1). This purchase is over $34,000. GCC 3.16.050 A4 allows the City Council to determine that a particular commodity should be purchased rather than selection based on price by passing a resolution by a 4/5 vote.

Bidding exemption 3 does not apply because there are resellers that market this equipment but do not offer its service arrangement.

Staff asks the City Council to approve Resolution No. 2023-55 to authorize the attached contract for purchase and maintenance of the Police Department’s Tasers.

Gonzales City Code is shown for reference only.

3.16.050 BIDDING REQUIRED; EXCEPTIONS:

A. Purchases of supplies and equipment shall be by bid procedures as prescribed by this chapter; provided, that bidding shall be dispensed with:

1. When the amount involved is less than five thousand dollars ($5,000.00); or

2. When an emergency requires that an order be placed with the nearest available source of supply; or

3. When the commodity, produce or equipment can be obtained from only one vendor; or

4. When the city council determines, by a resolution passed by four-fifths (4/5) of its members, that because of differences in the kinds or types of the particular commodity, product or equipment available on the market, it would be to the city’s advantage to make a selection on the basis of the suitability of the same to the city’s needs, rather than on the basis of price; or

5. When the city council determines, by a resolution passed by a majority of its members, that cost and time savings can be realized by using the purchasing procedures and bid results of another public entity in lieu of the bidding policies prescribed in this chapter, in accordance with the procedures set forth in subsection C of this section.

Explain: The Police Department’s Tasers are an integral part of keeping Gonzales safe. This program will keep safety equipment available for use in keeping our community as safe as possible, while providing the needed tools to perform that task.

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Explain: This contract commits resources to ensure the Police Department can continue to provide excellent services. Tasers are an integral part of the Department’s escalation of force.

Without this piece of equipment, force options are more limited.

Explain: Staff believes that this contract for equipment and maintenance is the most costeffective way to provide this need.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: Purchasing directly from the manufacturer with this single source product, saves retail markup and provides the best price.

ALTERNATIVES
Alternative 1 – The City Council could direct staff to purchase individual items as needed, and maintain the equipment when needed rather than contract for this single large purchase.

BUDGET IMPACT
Staff budgeted for contract expenses and this expense is within the approved budget, and will budget for this contract in future budgets.

CONCLUSION
Staff recommends the City Council approve Resolution No. 2023-55, A Resolution of the City Council of the City of Gonzales approving a Contract with Axon Enterprises, Inc. for 5 years, not to exceed $7,800 per year for the purchase of Taser™ equipment and service contract.

Attachments:

1. PD Taser Policy

2. Resol 23-55 Taser Equipment Contract with Axon Enterprises

3. Axon Enterprise Contract
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Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 32
Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 33
Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 34
Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 35
Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 36
Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 37
Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 38
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Attachment: PD Taser Policy (2778 : Resolution No. 2023-55 Contract with Axon Enterprises)

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RESOLUTION NO. 2023-55

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES APPROVING A CONTRACT WITH AXON ENTERPRISES, INC FOR 5 YEARS NOT TO EXCEED $7,800 PER YEAR FOR THE PURCHASE OF TASER™ EQUIPMENT

AND SERVICE CONTRACT
WHEREAS, the City of Gonzales adopted policy 310 for the Police Department requiring Police Officers to carry Taser™ Equipment; and
WHEREAS, Axon Enterprises, Inc. makes, sells and maintains Taser™ equipment; and WHEREAS, Gonzales City Code 3.16.050 requires competitive bidding for purchases over $5,000 unless the city council determines, by a resolution passed by four-fifths (4/5) of its members, that because of differences in the kinds or types of the particular commodity, product or equipment available on the market, it would be to the city’s advantage to make a selection on the basis of the suitability of the same to the city’s needs, rather than on the basis of price; and WHEREAS, the Police Chief requests the City Council approve a contract for purchase and maintenance with the manufacturer of the required equipment for the Police Department because they are the only manufacturer of Taser™ equipment, and it would be to the City’s advantage to purchase and have this equipment maintained by the manufacturer.

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

1. All of the recitals set forth above are true and correct and are hereby adopted and incorporated herein as findings.

2. The City Council finds that pursuant to Gonzales City Code Section 3.16.050, that usual bidding procedures established for the purchase of equipment, may be dispensed with because differences in the kinds or type of a products or equipment involved in the proposed purchase make it advantageous for the City to make a selection on the basis of the suitability of said equipment to the City’s needs, rather than just on the basis of price.

3. The City Council hereby authorizes the City Manager to enter into a contract with Axon Enterprises, Inc. to purchase and maintain Taser™ five (5) years for an amount not to exceed thirty-five thousand dollars ($35,000) (total price over five year term) at an annual cost not to exceed seven thousand eight hundred dollars ($7,800).

PASSED AND ADOPTED by at least a four-fifths majority of the City Council of the City of Gonzales at a regular meeting duly held on the 7 th day of August, 2023 by the following
vote:

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Attachment: Resol 23-55 Taser Equipment Contract with Axon Enterprises (2778 : Resolution No. 2023-55 Contract with Axon Enterprises)

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AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
_____________________________
Mary Villegas, Deputy City Clerk
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Attachment: Resol 23-55 Taser Equipment Contract with Axon Enterprises (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 44
Attachment: Axon Enterprise Contract (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 45
Attachment: Axon Enterprise Contract (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 46
Attachment: Axon Enterprise Contract (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 47
Attachment: Axon Enterprise Contract (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 48
Attachment: Axon Enterprise Contract (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) Packet Pg. 49
Attachment: Axon Enterprise Contract (2778 : Resolution No. 2023-55 Contract with Axon Enterprises) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 7, 2023
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Gloria Road Agricultural Cooler Annexation Property Tax Transfer Agreement

RECOMMENDATION
It is recommended that the Gonzales City Council take the following actions:
• Receive the staff report;
• Consider and Adopt Resolution 2023-56 “A Resolution of the City Council of the City of Gonzales Approving A Property Tax Transfer for the Proposed Gloria Road Agricultural Cooler Reorganization Involving Annexation of 48.97 acres to the City of Gonzales and Detachment from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District”

BACKGROUND
On May 15, 2023, the City Council approved multiple actions to approve the Gloria Road Agricultural Cooler project and authorize the submittal of an application to the Local Agency Formation Commission (LAFCO) of Monterey County to consider the annexation of the proposed 48.97-acre project into the City of Gonzales and detachments from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District. The project is officially in an incomplete status because the proposal cannot be considered by LAFCO until a property tax transfer agreement with Monterey County has been approved by both the City and the County.

On Tuesday, July 25, 2023, the Monterey County Board of Supervisors approved the property tax transfer for the proposed “Gloria Road Agricultural Reorganization” by Resolution No: 23-__ (Still un-numbered AGENDA
ITEM
7 Packet Pg. 50
as of 08/01/2023). Approval by the Gonzales City Council is required to deem the application complete and proceed to a public hearing to likely take place in September 2023.

REVIEW AND ANALYSIS
The proposed annexation will result in the addition of 48.97 acres to the City of Gonzales. By law, the County and City are required to agree to a new tax transfer agreement for the property to be annexed to the City prior to the time that said reorganization is considered by LAFCO.

The Monterey County Board of Supervisors has approved the use of a “pro forma fair share tax transfer resolution” applicable to such reorganizations and is basically unwilling to deviate from the same. As such, the formula presented for Council consideration and approval is the same formula used in past annexations and by other cities since 1980. While there have been many conversations about amending the formula, no formal effort has been made to negotiate changes to the over-40-year-old formula. Such an effort is likely to take a significant amount of time and be a fairly complex negotiation process.

The established tax transfer formula as set forth in the resolution provides that the County and affected agencies will transfer a percentage of their “tax base revenue” based on the pro rata share of the City’s equivalent tax rate to the combined City/County equivalent tax rates. The formula also includes adjustments to accommodate State mandated shifts of County and City revenues to the Education Revenue Augmentation Fund (ERAF).

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: Annexation and construction of the Cooler project will provide additional employment opportunities, promote a sustainable agricultural industry while creating a southern agricultural edge for the city to ensure that it keeps its small-town character.

Explain: The development of a strong industrial base will positively support the City’s General Fund on an annual basis, ensuring that the City can improve the quality-of-life services that are provided to the community.

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.

Explain: See 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
Packet Pg. 51
• Education X Yes No N/A
Explain: See Vision explanation above.

ALTERNATIVES
Alternatively, the City Council may choose not to adopt the proposed resolution. Should the City wish to renegotiate the 40-year-old tax sharing formula with the County of Monterey, this would result in significant delay to the Cooler and Annexation proposals moving through LAFCo. This action to delay would be counter to the applicant’s aggressive timing needs and coordination with growers and crop rotations and the utility of the new cooler investment in the community.

BUDGET IMPACT
According to the report completed by Willdan Financial Services related to the Rianda cooler project, it is projected that the City will receive $72,664 in annual revenue with $46,146 in expenses, resulting in a surplus of $26,518 per year. Additionally, the City would receive one-time revenues associated with permit fees and an anticipated $4,507,251 in one-time development impact fees (adjusted for any credits for identified improvements constructed by the applicant) upon full build-out of the project to offset the capital construction costs to accommodate future growth in the City of Gonzales.

CONCLUSION
Staff recommends approval of Resolution 2023-56 “A Resolution of the City Council of the City of Gonzales Approving A Property Tax Transfer for the Proposed Gloria Road Agricultural Cooler Reorganization Involving Annexation of 48.97 acres to the City of Gonzales and Detachment from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District”. Staff also supports greater conversations in partnership with the other Salinas Valley cities about working together with Monterey County to have meaningful discussions and amendments to the Tax Transfer Agreement Formula to reflect the many changes and challenges in local government administration that have occurred over the last 45 years since the passage of Proposition 13 in California.

Attachments:

1. Resolution No. 2023-56

2. Monterey County Approved Resolution for Tax Transfer (Pending Signature) Packet Pg. 52
RESOLUTION NO. 2023-56

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

APPROVING A PROPERTY TAX TRANSFER FOR THE PROPOSED GLORIA ROAD

AGRICULTURAL COOLER REORGANIZATION INVOLVING ANNEXATION OF

48.97 ACRES TO THE CITY OF GONZALES AND DETACHMENT FROM THE

MONTEREY COUNTY RESOURCE CONSERVATION DISTRICT AND GONZALES

RURAL FIRE PROTECTION DISTRICT
WHEREAS, the Revenue and Taxation Code Section 99 Assembly Bill 8, Chapter 282) Statutes 1979, as amended by Senate Bill 180 (Chapter 801) provides for the Monterey County Board of Supervisors to determine an appropriate tax transfer for all jurisdictional changes of organization occurring within Monterey County and for the City Council of any affected City to concur on the transfer prior to the proposal being considered by the Local Agency Formation Commission (LAFCO); and
WHEREAS, the City of Gonzales has submitted an application to LAFCO for the Gloria Road Agricultural Cooler Reorganization involving annexation of 48.97 acres to the City and detachments from the Monterey County Resource Conservation District and the Gonzales Rural Fire Protection District, located in Tax Rate Area 076-001; and WHEREAS, pursuant to Revenue and Taxation Code Section 99(b)(6), the Executive Officer of LAFCO shall not issue a Certificate of Filing (Government Code Section 56828) for a change of organization until a change of property tax revenue is negotiated; and WHEREAS, the Monterey County Board of Supervisors adopted as policy a set of formulas to be used for all jurisdictional changes of organization on April 29, 1980 (Resolution #80-249); and
WHEREAS, the current distribution of property taxes within tax rate area 076-001 is as follows:

27.72% - Monterey County’s Share

1.51% - Affected District’s Share

70.77% - Non-affected District’s Share
100.00% - Total; and
WHEREAS, the Revenue and Taxation Code Section 99 (Senate Bill 180, Chapter 801) requires that non-affected local agencies percentage share will remain constant; and

WHEREAS, the County of Monterey and the City of Gonzales wish to agree to a fair share distribution of remaining property tax revenues; and WHEREAS, the County of Monterey has realized a 41% reduction and the City of Gonzales has realized a 13% reduction in property tax revenue imposed by the State under Senate Bill 617, Chapter 699. Statutes 1992; and
Packet Pg. 53
Attachment: Resolution No. 2023-56 (2779 : Resolution No. 2023-56 Gloria Road Cooler Tax Transfer Agreement) WHEREAS, each year thereafter both the County and the City continue to shift revenues to the Education Revenue Augmentation Fund (ERAF); NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Gonzales does hereby agree to the following formulas for property tax base and increment distribution within Tax Rate 076-001 after change of organization/reorganization.

Tax Rate Area 076-001
A. Distribution of Property Tax Base
Property Tax base is the property tax revenue that is available prior to change of organization/reorganization:

Prior to Change of Organization/Reorganization:
(City of Gonzales, Tax Rate Area 007-018)
Current Ratio
City of Gonzales - 14.63% 50.03%
Monterey County - 14.61% 49.97%
Based on existing Tax Rate Area 076-001, Monterey County’s share of property tax reduced by 41% is equal to 16.35%. The total property tax available for distribution in the proposal area is equal to 16.35%.

After Change of Organization/Reorganization:
(New Tax Rate Area – To Be Assigned)

16.35% - Property Tax Available for Distribution

1. City of Gonzales’s Share of Total Property Taxes Collected:

16.35% - Property Tax Available for Distribution
X 50.03% - City of Gonzales’s Current Ratio
= 8.18%
+ 1.51% - Fire District Share
= 9.69%

2. Monterey County’s Share of Total Property Taxes Collected:

16.35% - Property Tax Available for Distribution
X 49.97% - Monterey County’s Current Ratio
= 8.17%
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Attachment: Resolution No. 2023-56 (2779 : Resolution No. 2023-56 Gloria Road Cooler Tax Transfer Agreement) plus

11.37% - The Adjustment for State Tax Shift
= 19.54%
Formula for property tax base allocation to the City of Gonzales from Tax Rate Area 007-018 after change of organization/reorganization.

City of Gonzales’s Property Tax Revenue =
Total Property Taxes Collected X 9.69% X
Full Months Remaining in Tax Year Divided by 12.

B. DISTRIBUTION OF PROPERTY TAX INCREMENT:

Property tax increment is the increase in property tax revenue above the base resulting from the increase in assessed value of property after the change in organization/reorganization.

The formula recognizes that all future growth will be subject to a shift to ERAF in the amount of 41% for the County and 13% for the City. After the shift, the County and the City will be in the same relative position as before dividing the remainder.

Prior to Change of Organization/Reorganization:
(City of Gonzales, Tax Rate Area 007-018)
Current  ERAF = Resulting Resulting
Rate Adjustment Rate Ratio
City of Gonzales 14.63% 87.0% 16.82% 40.44%
Monterey County 14.61% 59.0% 24.76% 59.56%
Based on existing Tax Rate Area 076-001, Monterey County’s share of property tax is 27.72%.

The total property tax available for distribution in the proposal area is 27.72%. The new Resulting Ratio calculated above is applied to the increment.

After Change of Organization/Reorganization
(New Tax Rate Area to be Assigned)

27.72% = Property Tax Available for Distribution

1. City of Gonzales’s Share of Property Tax Increment:

27.72% - Property Tax Available for Distribution
Packet Pg. 55
Attachment: Resolution No. 2023-56 (2779 : Resolution No. 2023-56 Gloria Road Cooler Tax Transfer Agreement) X 40.44% - City of Gonzales’s New Resulting Ratio
= 11.21% -
+ 1.51% - Fire District Share
= 12.72%

2. Monterey County’s Share of Property Tax Increment:

27.72% - Property Tax Available for Distribution
X 59.56% - Monterey County’s New Resulting Ratio
= 16.51%
Formula for property tax increment to the City of Gonzales from Tax Rate Area 007-018 after change of organization/reorganization:

City of Gonzales’s Property Tax Increment =
Total Property Tax Increment Collected X 12.72% X
Full Months Remaining in Tax Year Divided by 12.

PASSED AND ADOPTED this 7th day of August 2023, by the City Council of the City of Gonzales, 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. 56
Attachment: Resolution No. 2023-56 (2779 : Resolution No. 2023-56 Gloria Road Cooler Tax Transfer Agreement) Before the Board of Supervisors in and for the
County of Monterey, State of California
Resolution #_________________
Approve Property Tax Transfer for the proposed )
“Gloria Road Agricultural Cooler Reorganization”
Involving annexation of 48.97 acres )
to the City of Gonzales and detachment from )
the Gonzales Rural Fire Protection District )
WHEREAS, Government Code Section 56425(b) requires that prior to updating of a city’s Sphere of Influence, representatives of the city and county shall meet to discuss the proposed sphere and its boundaries and explore methods to reach agreement on the boundaries, development standards and zoning requirements within the area; and WHEREAS, the city and county approved a Memorandum of Agreement consistent with the requirements of Government Code Section 56425(b) on March 15, 2016; and WHEREAS, the Revenue and Taxation Code Section 99 (Assembly Bill 8, Chapter 282) Statutes 1979, as amended by Senate Bill 180 (Chapter 801) provides for the Monterey County Board of Supervisors to determine an appropriate tax transfer for all jurisdictional changes of organization occurring within Monterey County and for the city council of any affected City to concur on the transfer prior to the proposal being considered by the Local Agency Formation Commission (LAFCO); and
WHEREAS, the City of Gonzales has submitted a resolution of application to LAFCO for the “Gloria Road Agricultural Cooler Reorganization” involving annexation of 48.97acres to the City and detachment from the Gonzales Rural Fire Protection District; and WHEREAS, pursuant to Revenue and Taxation Code Section 99(b) (6), the Executive Officer of LAFCO shall not issue a Certificate of Filing (Government Code Section 56828) for a change of organization until an exchange of property tax revenue is negotiated; and WHEREAS, the Monterey County Board of Supervisors adopted as policy a set of formulas to be used for all jurisdictional changes of organization on April 29, 1980 (Resolution #80-249); and
WHEREAS, the current distribution of property taxes within tax rate area 076-001 is as follows:

27.72% - Monterey County’s Share

1.51% - Affected District’s Share

70.77% - Non-affected District’s Share
100.00% - Total; and
ATTACHMENT 2
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Attachment: Monterey County Approved Resolution for Tax Transfer (Pending Signature) (2779 : Resolution No. 2023-56 Gloria Road Cooler WHEREAS, the Revenue and Taxation Code Section 99 (Senate Bill 180, Chapter 801) requires that non-affected local agencies percentage share will remain constant; and WHEREAS, the County of Monterey and the City of Gonzales wish to agree to a fair share distribution of remaining property tax revenues; and
WHEREAS, the County of Monterey has realized a 41% reduction and the City has realized a 13% reduction in property tax revenue imposed by the State under Senate Bill 617, Chapter 699, Statutes 1992; and
WHEREAS, each year thereafter both the County and the City continue to shift revenues to the Education Revenue Augmentation Fund (ERAF);
NOW, THEREFORE, BE IT RESOLVED that the Monterey County Board of Supervisors does hereby agree to the following formulas for property tax base and increment distribution within Tax Rate Area 076-001 after change of organization/reorganization.

Tax Rate Area 076-001
A. DISTRIBUTION OF PROPERTY TAX BASE:

Property tax base is the property tax revenue that is available prior to change of organization/reorganization.

After Change of Organization/Reorganization:
(New Tax Rate Area – To Be Assigned)

16.35% - Property Tax Available for Distribution

1. City of Gonzales’s Share of Total Property Taxes Collected:

Packet Pg. 58
Attachment: Monterey County Approved Resolution for Tax Transfer (Pending Signature) (2779 : Resolution No. 2023-56 Gloria Road Cooler

16.35% - Property Tax Available for Distribution
X 50.03% - City of Gonzales’s Current Ratio
= 8.18%
+ 1.51% - Fire District Share
= 9.69%

2. Monterey County’s Share of Total Property Taxes Collected:

16.35% - Property Tax Available for Distribution
X 49.97% - Monterey County’s Current Ratio
= 8.17%
plus

11.37% - The Adjustment for State Tax Shift
= 19.54%
Formula for property tax base allocation to the City of Gonzales from Tax Rate Area 007-018 after change of organization/reorganization.

City of Gonzales’s Property Tax Revenue =
Total Property Taxes Collected X 9.69% X
Full Months Remaining in Tax Year Divided by 12.

B. DISTRIBUTION OF PROPERTY TAX INCREMENT:

Property tax increment is the increase in property tax revenue above the base resulting from the increase in assessed value of property after the change in organization/reorganization.

Prior to Change of Organization/Reorganization:
(City of Gonzales, Tax Rate Area 007-018)
Current  ERAF = Resulting Resulting
Rate Adjustment Rate Ratio
City of Gonzales 14.63% 87.0% 16.82% 40.44%
Monterey County 14.61% 59.0% 24.76% 59.56%
Packet Pg. 59
Attachment: Monterey County Approved Resolution for Tax Transfer (Pending Signature) (2779 : Resolution No. 2023-56 Gloria Road Cooler Based on existing Tax Rate Area 076-001, Monterey County’s share of property tax is 27.72%.

The total property tax available for distribution in the proposal area is 27.72%. The new Resulting Ratio calculated above is applied to the increment.

After Change of Organization/Reorganization
(New Tax Rate Area to be Assigned)

27.72% = Property Tax Available for Distribution

1. City of Gonzales’s Share of Property Tax Increment:

27.72% - Property Tax Available for Distribution
X 40.44% - City of Gonzales’s New Resulting Ratio
= 11.21% -
+ 1.51% - Fire District Share
= 12.72%

2. Monterey County’s Share of Property Tax Increment:

City of Gonzales’s Property Tax Increment =
Total Property Tax Increment Collected X 12.72% X
Full Months Remaining in Tax Year Divided by 12.

PASSED AND ADOPTED THIS ________ day ___________, by the following vote, To wit:

AYES:

NOES:

ABSENT:

Packet Pg. 60
Attachment: Monterey County Approved Resolution for Tax Transfer (Pending Signature) (2779 : Resolution No. 2023-56 Gloria Road Cooler City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
It is recommended that the City Council Approve an Agreement Between the City of Gonzales and Kutak Rock, LLP for Bond Counsel Services for the Community Center Complex Project, and Authorize the City Manager to sign it.

BACKGROUND
As the Council is aware, design and construction of the Community Center Complex will be funded by a variety of sources including the following:
• Measure X (local sales tax) expected to provide $7.5M of project funding. • $5.0 M State grant for the Teen Innovation Center secured by State Senator Anna Caballero • Community Development Block Grant (CDBG FY 2022/23 and FY 2023/24) • County contribution of $1.8M to relocate existing library from the Gonzales Shopping Center • Two grants (Electric Vehicle Charging Station Grant from the California Energy Commission and Building Forward Library Infrastructure Grant Program)
• Capital Campaign with a $10.0M goal with current contributions totaling $5.8M The City project team applied to the US Department of Agriculture (USDA) for a loan that would be secured by long term City revenue sources including Measure X. This financing is needed for construction of the first phase of the Community Center Project. The USDA loan program is available to rural communities and offers a low interest rate as well as a long repayment period, both of which are advantageous for the city. The current interest rate is 3.75% with up to a 38-year term.

AGENDA
ITEM
8 Packet Pg. 61

REVIEW AND ANALYSIS
The USDA’s loan application requires the city to engage a firm to provide bond counsel services and the city’s long-time financial advisor, NHA Advisors (NHA) has recommended Kutak Rock, LLP (Kutak).

NHA has made this recommendation based upon Kutak’s overall firm reputation, the assigned Kutak attorney, Albert Reyes’ specific and significant experience serving as bond counsel on USDA financings, Mr. Reyes’ previous satisfactory professional service to the City and the low proposed fee. Their proposed fee is $40,000. The use of bond counsel services is included in the project budget for Phase 1 of the project.

Therefore, staff recommends that the City Council authorize the City Manager to execute an Agreement with Kutak Rock, LLP for Bond Counsel Services relating to the expected financing for the Community Center Complex Project per the requirements established by the USDA.

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: Constructing a Community Center will provide residents with a facility for a wide variety of public and private functions, recreation programs and other activities which will enhance the quality of life of Gonzales residents.

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: See explanation above for the Mission.

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 Yes X No N/A
• Housing Yes X No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A

ALTERNATIVES
The City’s loan application to the USDA requires execution of an agreement with a firm to provide bond counsel services. The city could seek other financing options for the $8.0M needed to advance the Community Center Complex Project but staff recommends pursuing the USDA loan due to the low interest rate and long repayment term.

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BUDGET IMPACT
The cost of Bond Counsel services is included in the budget for Phase 1 of the Community Center Complex Project

CONCLUSION
It is recommended that the City Council Approve an Agreement Between the City of Gonzales and Kutak Rock, LLP for Bond Counsel Services for the Community Center Complex Project, and Authorize the City Manager to sign it.

Attachments:

1. Agreement for Bond Counsel Services

2. Kutak Rock, LLD Proposal
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1 AGREEMENT FOR BOND COUNSEL SERVICES
THIS AGREEMENT (the “Agreement”) is made and entered into this ____ day of _____, 202__, between the City of Gonzales, whose address is 147 Fourth Street, Gonzales, California 93926 (the “City”), and Kutak Rock LLP (“Kutak”) whose address is 5 Park Plaza, Ste. 1500, Irvine, California 92614.

W I T N E S S E T H:

WHEREAS, the City proposes to finance the construction and installation of certain improvements to its Community Center (the “Project”); and WHEREAS, Kutak is specifically trained and experienced in the conduct of proceedings for accomplishing the financing of the Project through the preparation, sale and delivery of tax-exempt lease revenue bonds or other obligations for such purposes (the “Obligations”); and
NOW, THEREFORE, in consideration of the covenants and premises herein contained and other good and valuable consideration, the parties hereto agree as follows:

1. Duties. Kutak shall provide legal services in connection with the authorization, issuance, sale, execution and delivery of the Obligations (the “Transaction”).

Such services shall include, but not be limited to, the following:
a. Conferring and consulting with the City, the officers, administrative staff, municipal advisor, underwriter, if any, placement agent, if any, and other representatives of the City in connection with the preparation and formulation of the Transaction. b. Preparation of the Resolution of Issuance, security documents and all other resolutions, agreements, notices and other documents necessary for the proper conduct and consummation of the Transaction.
c. A review of all financial documents for legal sufficiency. d. Preparation of an incumbency certificate, a tax compliance certificate, and any and all other closing documents required of the City to accompany delivery of the financing documents.
e. Attendance at and supervision of the closing, and issuing the legal opinion of Kutak stating that the interest payments with respect to the Obligations is exempt from present federal and State income taxes, as the case may be, and approving in all respects the legality of all proceedings for the authorization, issuance, sale and delivery of the Obligations and other agreements relating to the Transaction.
f. Preparation of a transcript of the closing of the Transaction.

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Attachment: Agreement for Bond Counsel Services (2787 : Agreement with Kutak Rock for Bond Counsel Services for the Community Center 2 g. Conferring and consulting with City officials and agents with regard to any problems which may arise prior to the maturity of the issuance. h. Providing any other necessary services, including ongoing monitoring of the Transaction after the sale of the Obligations and assistance to the City regarding the Transaction, generally expected of Kutak not listed above.

2. Compensation. For provision of the services to be rendered pursuant to this Agreement, the City shall pay Kutak a fee of $40,000 assuming the Obligations are issued on a private placement basis to the United States of America, acting through the Rural Utilities Service (or successor agency, bureau or division) of the United States Department of Agriculture. Such fee shall include any out-of-pocket expenses incurred by Kutak in the course of this engagement, such as reproduction and printing costs, word processing time, long distance telephone calls, travel at the request of the City and similar items (excluding any publication costs). Such fee is payable only upon issuance of the Obligations and shall be paid from proceeds thereof.

In the event Kutak is requested to perform additional work outside of its normal and customary services as bond counsel, such as litigation, Kutak will be paid additional compensation therefor following the submission of monthly, itemized bills at the hourly rate of the attorney performing such services; provided, however, there shall be no additional compensation due Kutak under the paragraph without the prior approval of the City.

3. Assignment. This Agreement may be assigned by the City to any other issuer of the securities as may be necessary to consummate the Transaction, without the consent of but with notice to Kutak.

4. No Guarantees; Entire Agreement. Nothing in this Agreement and nothing in our statements to you should be construed as a guarantee or promise about the outcome of the Transaction or any phase thereof. We make no such guarantees or promises.

Comments about the course or outcome of the Transaction or any phase thereof which we may make from time to time are expressions of opinion only. The written Agreement constitutes the entire Agreement between the parties hereto with respect to Kutak services and neither party has been induced to make or enter into this Agreement by reason or promise, agreement, representation, statement or warranty other than as herein contained.

5. Other Representation. Kutak may, from time to time, have clients with interests which may be potentially adverse to the City. Kutak reserves the right to represent said clients except on matters directly relating to the issuance and sale of the Obligations. We will disclose any such potential conflict to you and will seek a waiver of that conflict. We will of course work with you and our other clients to construct an appropriate ethical wall to protect the confidences of all of our clients and to clearly separate our work in any such case. Although we are not asking for a waiver now since these conflicts may not emerge, we ask that you agree to give good faith consideration to our requests for any such waivers in the future. This will allow us to better serve all of our clients.

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Attachment: Agreement for Bond Counsel Services (2787 : Agreement with Kutak Rock for Bond Counsel Services for the Community Center 3 6. Work Product. Our files developed in the course of work undertaken pursuant to this Agreement are your property. We will release those files to you or to anyone else you designate upon your written request delivered to the attorney in charge of this matter.

However, such a request will signify the end of this engagement if it is then still ongoing. You agree that we may, in our sole discretion, copy all or any portion of such files at your expense and retain such copies, and that we may have a reasonable period of time before releasing the documents to you or your designee in order to make the copies. We will from time to time send portions of your files that are not currently needed to an off-site storage facility. The cost of using this facility will be our sole expense. However, we are not the guarantor of the security of any off-site storage facility. Accordingly, you agree that the firm will not be responsible for any damages which may occur as a result of the loss of any of your files which we store at an off-site storage facility. You also agree that we may, after the passage of two years without our having performed any work for you pursuant to this engagement, destroy the files of this engagement without further notice to you unless you have previously provided us with written instructions to forward the files to you or to another person you designate.

7. Insurance. Kutak carries professional liability insurance which would cover the services we will be providing under the terms of this Agreement. That insurance is subject to a self-insured retention.

8. Litigation. If an action or proceeding is commenced to enforce this Agreement or any provision hereof, the prevailing party in such an action or proceeding shall be entitled to recover the reasonable amount of his, her or its fees and costs thereof, in addition to compensatory damages. For the purposes of enforcing this Agreement only, and as otherwise required by law, you agree that this Agreement may be disclosed to a court or arbitrator.

9. Notices. All notices, demands, requests, consents and approvals given, required or permitted to be given hereunder, shall be contained in writing and shall be deemed sufficiently given if sent by express delivery service or by registered or certified mail, postage prepaid and return receipt requested, addressed to the parties at the addresses set forth above or on any addendum or counterpart to this Agreement, or to such other address as the recipient shall have notified the sender of in writing. You agree to keep us currently informed of any change in your address or telephone numbers so that we may effectively communicate with you. We will also advise you promptly of any change in the firm's business address, electronic mail address, telephone or facsimile numbers.

10. California Law. This Agreement is made under and shall be construed in accordance with the substantive laws of the State of California.

11. Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original but all of which shall constitute one and the same instrument.

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Attachment: Agreement for Bond Counsel Services (2787 : Agreement with Kutak Rock for Bond Counsel Services for the Community Center 4 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers and representatives thereto duly authorized, all as of the day and year first above written.

CITY OF GONZALES
By: ______________________________
Title: _____________________________

KUTAK ROCK LLP
By: ______________________________
Albert R. Reyes, a Partner
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Attachment: Agreement for Bond Counsel Services (2787 : Agreement with Kutak Rock for Bond Counsel Services for the Community Center Fee Proposal to Provide
Bond and/or Disclosure Counsel Services
City of Gonzales
April 6, 2023
kutakrock.com
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FIRM OVERVIEW
Kutak Rock LLP is a national firm of more than 550 lawyers with locations in 19 cities nationwide. The firm serves local, regional and national clients in a multidisciplinary practice.

We encourage our attorneys to take advantage of the national resources and broad range of expertise the firm offers in order to provide the best legal services possible to our clients.

Kutak Rock has earned a reputation across the United States and abroad for providing excellent legal services in a practical, cost-conscious manner. The firm maintains that reputation by fostering an atmosphere in which firm lawyers actively communicate with their clients at the initial stages of each engagement to gain a complete and clear understanding of desired objectives.

Attorneys use their broad experience to help clients achieve those objectives in an economical and timely fashion.

The firm maintains expertise in the areas of public finance, general corporate law, corporate finance, real estate, litigation, intellectual property and technology law, labor and employment law, employee benefits law, securitization, tax, tax credits, banking, bankruptcy, health care law, insurance, antitrust, environmental law, federal practice, international trade and government relations. The attorneys of Kutak Rock work together in integrated, national practice groups to maintain and enhance their technical expertise and to reinforce and support one another in achieving client objectives.

Kutak Rock has a longstanding commitment to the hiring and advancement of women and minority attorneys and has achieved national recognition among major law firms for its fulfillment of that commitment. The firm maintains a Director of Diversity on staff to assist with recruiting minority attorneys and to mentor them once they join the firm. Kutak Rock has been named a “Best Law Firm for Minority Attorneys,” “Best Law Firm for LGBTQ Equality,” a “Bright Spot” for flexibility, a “Ceiling Smasher” for women partners, and “Invested in Diversity.” The firm is Gold Certified by the Women in Law Empowerment Forum and was Certified and Certified “Plus” in Mansfield Rule version 3.0.

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PUBLIC FINANCE PRACTICE
More than 130 Kutak Rock lawyers devote all or a major portion of their practice to the field of public finance and related aspects of law. The firm has served as bond counsel in more than 20,000municipal bond issues in all 50 states, the District of Columbia, the Virgin Islands, Guam and Puerto Rico. No opinion of the firm with respect to the tax-exempt status of a bond issue has ever been the subject of any court action.

The firm’s national prominence is attributable in part to the large number of subspecialties it maintains within the public finance field. These subspecialties run the gamut of tax-backed and revenue bond debt, including traditional general obligation bond issues, tax and revenue anticipation notes, municipal commercial paper, infrastructure financings (including water, sewer and electric bonds), clean water and drinking water revolving funds, higher education, health care and other 501(c)(3) conduit financings, special district and tax increment bonds, arena and convention center bonds, solid waste project financings, transportation financings (including airport, mass transit, port and toll road bonds), lease financings (including certificates of participation), single-family and multifamily housing bonds, student loan financings and a wide variety of municipal derivative products.

To complement this expertise, Kutak Rock has a 10-member Section 103 Tax Department (including a former IRS official) specializing in federal tax exemption matters and a number of nationally recognized authorities in the application of the federal securities laws to public finance.

The Tax Department attorneys meet weekly via conference call to discuss current tax issues and developments as well as to share information obtained from regular interactions with Department of Treasury and IRS personnel. These tax attorneys also regularly handle IRS bond audits—over 300 to date.

The National Public Finance Department is purposefully organized to match this breadth of expertise with the needs of a diverse client base. Consequently, the firm does not limit its practice focus to one particular role. The firm routinely serves as bond counsel, special tax counsel, issuer’s counsel, disclosure counsel, underwriter’s counsel, placement agent’s counsel, counsel to municipal bond insurance companies and to letter of credit banks and as borrower’s counsel in conduit financings.

Kutak Rock attorneys also take pride in their willingness to work with our clients to develop new and inventive approaches to satisfy the needs of our clients. Rather than only being able to replicate what other firms have done before, the firm has gained a reputation for undertaking sophisticated transactions that involve the application of creative approaches to difficult financing problems. In the past 30 years the firm has provided legal services in many financings that Institutional Investor magazine and The Bond Buyer have recognized as public finance “Deals of the Year.” Most recently, the firm served as bond and underwriter’s counsel for the 2020 P3 Financings of the Year. Kutak Rock also served as bond counsel for the “ESG/Green Financing” of 2018-19, a large “green bond” financing of the Los Angeles County Metropolitan Transportation Authority.

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In addition to its highly active National Public Finance Department, the firm has a strong contingent of lawyers who work in real estate, bankruptcy, banking, securities laws, litigation and other areas. These practitioners are available to support public finance clients of the firm as needed.

LEADERS IN BOND COUNSEL
Kutak Rock has been listed among the most active bond counsel firms in the nation in annual industry rankings since such statistics were first made available. Following are national rankings for the firm for recent years as compiled by Refinitiv (formerly Thomson Reuters), the statistician for the public finance industry (rankings based on dollar total):

Issuers for which the firm has served as bond counsel include traditional political bodies such as states, counties, cities and school districts, as well as numerous special-purpose financing authorities such as public power districts, institutions of higher education, state housing finance agencies and student loan agencies.

UNDERWRITER’S COUNSEL EXPERIENCE
Kutak Rock has acted as underwriter’s counsel for every major national and most regional investment banking firms. With respect to the variety and quantity of financings, in recent years the firm’s experience in the role of underwriter’s counsel has been unmatched by any law firm. In fact, statistics compiled by Refinitiv show that for the period 1992 through 2022 (cumulatively over the term) Kutak Rock served as underwriter’s counsel in a larger number of public finance issues than any other firm in the country. Following are Refinitiv’s national rankings (based on dollar total) for Kutak Rock as underwriter’s counsel for recent years:

National Underwriter’s Counsel Rankings
Year Rank Number of Issues Dollar Total
2022 7 215 $9.27 billion
2021 5 300 $14.21 billion
2020 5 293 $14.28 billion
2019 5 272 $11.73 billion
2018 6 250 $9.85 billion
National Bond Counsel Rankings
Year Rank Number of Issues Dollar Total
2022 2 406 $19.19 billion
2021 2 523 $25.43 billion
2020 5 499 $17.24 billion
2019 3 485 $19.42 billion
2018 4 369 $16.20 billion
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TAX EXPERTISE
An excellent indicator of the firm’s tax expertise is the number and quality of the bond structures developed by the firm’s tax lawyers. Kutak Rock developed the current floating rate tender bond program, convinced the IRS that a swap contract should be integrated with a floating rate bond issue with a resulting fixed “yield,” developed a contingent interest structure in which the contractor for a major toll road received contingent interest, and developed numerous refunding techniques replicated by many bond counsel firms.

Members of the Public Finance Tax Department frequently address client questions with regard to private use of bond-financed facilities. The depth and breadth of the group’s experience is an important resource for clients who face unpredictable challenges in attempting to make the best use possible of their facilities within the bounds of applicable tax law. The firm’s tax lawyers have obtained a number of positive rulings from the IRS on private use matters. Following are the rankings for Kutak Rock (based on dollar total):

National Special Tax Counsel Rankings
Year Rank Number of Issues Dollar Total
2022 6 3 $389 million
2021 14 2 $79 million
2020 9 8 $166 million
2019 8 16 $328 million
2018 4 16 $930 million
Every week the members of the Kutak Rock Public Finance Tax Department convene by conference call to discuss current financings in which the firm is involved. Members of the department use this forum to raise unusual or difficult questions concerning the tax implications of ongoing transactions and to solicit the counsel of their colleagues. By concentrating the expertise of all the firm’s tax lawyers in this way, the essential elements of a transaction are more likely to become clarified, and a resolution of the issue is more likely to emerge. The firm’s use of a group dynamic has been a highly successful approach to resolve what often appear to be intractable problems.

The group approach also serves to keep the firm’s tax attorneys fully coordinated with respect to the firm’s articulated positions on tax questions that arise repeatedly.

NATIONALLY RENOWNED DISCLOSURE COUNSEL
The firm’s public finance attorneys have also developed an extraordinary expertise in analyzing the SEC’s initiatives, such as the MCDC Initiative, the municipal advisor rules and Rules 15Ga-1 and 15Ga-2, the conduct of due diligence investigations, the evaluation of information for materiality, the preparation of disclosure documents and the development of disclosure policies and procedures as highly recommended (and effectively required) by the SEC.

Following are the firm’s national disclosure counsel rankings (based on dollar total) for recent years as compiled by Refinitiv:

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National Disclosure Counsel Rankings
Year Rank Number of Issues Dollar Total
2022 5 105 $9.09 billion
2021 4 140 $11.02 billion
2020 8 140 $5.05 billion
2019 7 148 $5.41 billion
2018 5 125 $5.47 billion
As one of the nation’s most active firms in the municipal disclosure arena (as evidenced by the firm’s consistently high national ranking as disclosure counsel, noted above), Kutak Rock’s public finance attorneys have developed an ongoing familiarity with market and regulatory expectations and developments, expertise in the conduct of due diligence investigations, and experience in the evaluation of information for materiality and the SEC-recommended development of disclosure-related procedures and staff training. The firm regularly advises government officials concerning the preparation of disclosure documents for primary offerings and secondary market continuing disclosure filings, as well as the making of public and private statements relevant to disclosure during press conferences and presentations. Kutak Rock has a concrete, firmwide system in place to monitor and keep abreast of regulatory requirements so that our attorneys and our clients stay informed of regulatory disclosure requirements. Our broad market knowledge and penetration ensures that we can assist our clients to understand regulatory trends, learn quickly of specific developments and be aware of practical developments as they occur across the country.

Clients include a few states where the firm has been specifically appointed as special disclosure counsel for their bond issues, other additional states where our role as bond counsel includes disclosure advice, numerous state agencies, counties, major metropolitan cities, small cities and towns, and numerous special districts.

Kutak Rock regularly submits comments to the SEC and others regarding proposed rules and regulations affecting the municipal market. The firm has closely monitored the guidance of the SEC regarding municipal disclosure and has kept up to date with the SEC’s program of heightened scrutiny of municipal issuers. Most recently, the firm identified various issues, and outlined policy and procedural implementation suggestions, in response to the August 20, 2018 release of the amendments to Rule 15c2-12, which added two reportable events effective February 27, 2019. The proposed amendments were in response to complaints by investors and analysts concerning the lack of information about private borrowings by issuers (such as bank lines of credit and leases) and about modifications of the terms or provisions of any type of financial obligation of an issuer. Based on our extensive experience with issuers of all sizes, we knew that the amendments, as proposed, would be very difficult for most issuers to comply with, and (we believed) were much broader than investors and analysts really required (for example, a lease of any size, even for an office copy machine, would have had to be reported). Kutak Rock submitted extensive comments to the SEC, and when the Final Amendments were published they were curtailed in many respects. (Our firm’s comments were cited in 14 footnotes to the accompanying SEC commentary, far more than any other commenting law firm.) We then prepared written Packet Pg. 73
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advice for our clients on both the steps they should follow to implement the new Amendments, as well as technical advice on the terms and nuances of the new Amendments.

Kutak Rock was also intimately involved in the SEC’s preceding program, the MCDC Self-Reporting Initiative, assisting many issuers in analyzing whether—and how—to respond, and then representing seven (of the unlucky 72 selected issuers) in negotiating consent orders with the SEC. By virtue of these negotiations, the firm gained valuable insights about the SEC’s analysis of the disclosure rules—and both the important, and unimportant, issues.

The role of disclosure counsel in an individual transaction versus an ongoing period of time comprised of related transactions is substantively different. In all transactions, whether the former or the latter, disclosure counsel assists the issuer in complying with securities laws and regulations.

However, the role of disclosure counsel in an ongoing relationship extends beyond the transaction to assisting the issuer in implementing procedures, fulfilling secondary market continuing disclosure obligations and assuring itself that at all times, even between transactions, it is in compliance with applicable laws and regulations. In a transactional engagement, the role is akin to analyzing a snapshot of the issuer’s disclosure. In an ongoing relationship, the role is like watching a movie of the issuer’s disclosure with continuous footage.

The role of disclosure counsel is especially important at a time when the SEC is expanding its scrutiny of municipal disclosure, as illustrated by recent enforcement actions and inquiries regarding pension disclosure, federal legislation, including the Dodd-Frank Act, rulemaking, such as the expansion of Rule 15c2-12, and statements by SEC staff in various forums to the effect that the SEC is expanding its authority over the municipal markets. While much of the existing authority the SEC and Municipal Securities Rulemaking Board (“MSRB”) have over the municipal market runs to underwriters and market participants other than bond issuers, it is important for bond issuers to keep abreast of such regulatory requirements, as they significantly impact bond issuance, and some regulatory requirements are, of course, passed on to bond issuers through contractual mechanisms in bond purchase contracts and elsewhere. Recent SEC actions against municipal officials and their financial advisors underscore the SEC’s intentions.

EXPERIENCE WITH WATER AND SEWER FINANCINGS
Kutak Rock has accrued significant experience providing legal services to municipal issuers of debt to finance water and sewer system projects. In its history Kutak Rock has provided bond counsel services in more than 1,310 bond issues for water and sewer facilities having an aggregate principal amount exceeding $40.7 billion. The firm has taken part in water and sewer project financings for issuers large and small—for states and major metropolitan areas as well as townships and villages.

In recent years the firm has provided bond counsel services in water and wastewater project financings for issuers such as the Cities of Conway, Clarksville, Fayetteville, Little Rock, Mountain Home and Texarkana, Arkansas; Holiday Island (Arkansas) Suburban Improvement District #1; the Fulton County (Arkansas) Water Authority; the Industrial Development Authority of the County of Maricopa, Arizona; the City of Phoenix, Arizona; the California Pollution Control Financing Authority; the Cities of Long Beach and Bakersfield, California; the Cities of Boulder, Packet Pg. 74
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Central City and Englewood, Colorado; Johnson County, Kansas; the Cities of Burlington, Gardner, Hutchinson, Lenexa, Mission Hills, Overland Park, Spring Hills and Wichita, Kansas; Camden and Greene Counties, Missouri; the Cities of Lake Ozark, Laurie, Parkville and Versailles, Missouri; the Cities of Omaha, Lincoln and Tecumseh, Nebraska; the Village of Ewing, Nebraska; the Oklahoma Water Resources Board; the Cities of Janesville and Madison, Wisconsin; the Town of Greybull, Wyoming; and many others.

LEASE REVENUE BOND EXPERIENCE
Kutak Rock has provided legal services in more than 685 lease revenue bond financings having an aggregate principal amount in excess of $15.6 billion. In California, the firm has participated in more than 80 lease revenue bond issues exceeding more than $2.8 billion in aggregate principal amount. California issuers in whose lease revenue bond financings the firm has provided services include the California Public Finance Authority, Madera Unified School District, the California Municipal Finance Authority, the City of Pomona, the City of Rancho Cucamonga, the City of Richmond, the City of Brentwood, the California Community College, the Gold Coast Transit District, the Finance Authority of Long Beach, Menifee Union School District, the City of Redondo Beach, the City of Los Angeles, The Community Redevelopment Agency of the City of Los Angeles, the San Diego County Board of Education, the County of Orange, Sutter County, the Municipal Water District of Orange County, the County of Riverside, the City of San Jose Financing Authority, the Anaheim Public Financing Authority, the California Special Districts Association Finance Corporation, the California Statewide Communities Development Authority and the California Transit Finance Corporation, among many others.

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FEE PROPOSAL
Kutak Rock has always been flexible in its billing arrangements with clients, developing fee structures that are fair to the firm for the time, effort and level of expertise to be devoted to the client, while at the same time providing the client adequate assurances that legal services are being provided on a timely, cost-effective basis.

Kutak Rock prides itself on providing responsive financing options for its clients.

Accordingly, the firm proposes the following fees for our services as bond counsel and/or disclosure counsel. Please note we are agreeable to discussing variations.

Type of Issue Fee
Lease financing for a community
center/library/teen center (interim financing
private placement)
$27,000 (bond counsel)
Lease Revenue Bond or Short-Term Note
financing for a community
center/library/teen center (public offering)
$70,000 (bond counsel and disclosure
counsel)
USDA financing for a community
center/library/teen center
$40,000 (bond counsel)
$27 million State Revolving Fund loan for
industrial wastewater project
$8,500 (bond counsel)
In addition, we note that our fees quoted above include ordinary expenses incurred in connection with the anticipated financing(s). Any extraordinary fees would be incurred only with the prior approval of the City of Gonzales and would be billed separately to the City of Gonzales. .

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Attachment: Kutak Rock, LLD Proposal (2787 : Agreement with Kutak Rock for Bond Counsel Services for the Community Center Complex City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
Staff recommends that the City Council Adopt Resolution No. 2023-57, A Resolution of the City Council of the City of Gonzales Declaring the Critical Need to Authorize GIS Plumbing, Inc. to Replace the Heater at the Community Pool for a Not-To-Exceed Cost of $81,600.

BACKGROUND
The Community Pool is a City-owned facility located at 205 Elko Street. The Community Pool was originally constructed in 1973 and underwent a major renovation in 2016. The City recreational department arranges and staffs the following activities at the pool each summer:
• Swim lessons
• Open swimming
• Pool parties on weekends
• Movie nights
• Water Aerobics
The pool heater was replaced during the 2016 renovation and is a Raypac Model P1262B. Over the last year, the pool heater has struggled to operate. Public Works staff coordinated with Raypac factory representatives to diagnose why the heater was not working. With Raypac’s help, staff replaced a number of heater parts only for the heater to continue to struggle to operate consistently.

Staff recently had the pool heater inspected by GIS Plumbing, Inc., a local Raypac service representative, and staff presented their observations to the Raypac factory representatives for their guidance and AGENDA
ITEM
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feedback. Based on provided photographs, Raypac representatives informed City staff that the cost to purchase and install replacement parts would not guarantee that the heater would work as designed and it would be better to install a brand-new heater.

There’s a possibility that low gas pressure caused the heater to prematurely wear out. Public Works staff has contacted PG&E for their staff to visit the pool and determine if low gas pressure caused the heater elements to deteriorate and for the unit to malfunction.

REVIEW & ANALYSIS
Section 3.16.050 “Bidding Required: Exceptions” of the City’s Municipal Code allows for exceptions to public bidding if “There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies or services to protect the public health, welfare or safety.” Sections 22050 and 20168 of the Public Contract Code provide that in the case of an emergency, the City Council, by four-fifths vote, may pass a resolution declaring the public interest and necessity demand the immediate expenditure of public funds to safeguard life, health, and property, and that such monies may be expended without compliance with mandatory contract bidding procedures.

GIS Plumbing, Inc. provided the attached quote for $68,000 to replace the pool heater and associated costs. Staff recommends adding a 20% contingency for unforeseen efforts for a $81,600 authorization to GIS Plumbing, Inc. to replace the pool heater. The heater is expected to take six to eight weeks to be delivered and installed.

The replacement of the heater for the Community Pool is urgent and staff recommends the City Council declare this an emergency and authorize GIS Plumbing to replace the Pool Heater at a not-to-exceed cost of $81,600.

Explain: Maintaining the operation of the City’s Community Pool supports our Vision to provide recreational facilities to city residents
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: See Vision explanation above.

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 Yes X No N/A
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• Housing Yes X No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision above.

ALTERNATIVES
• Direct staff to seek additional proposals for this work. • Amend or modify staff recommendation.

BUDGET IMPACT
This work will be funded with 100-515-6540 City Aquatics Capital Outlay – Equipment.

CONCLUSION
Staff recommends that the City Council Adopt Resolution No. 2023-57, A Resolution of the City Council of the City of Gonzales Declaring the Critical Need to Authorize GIS Plumbing, Inc. to Replace the Heater at the Community Pool for a Not-To-Exceed Cost of $81,600.

Attachments:

1. GIS Plumbing, Inc. Quote

2. Resolution No. 2023-57
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Estimate
GIS Plumbing Inc.
326 E. Alisal St Suite A
Salinas CA 93905
Lic # 1017139
(831) 776-1359
Owner/ Contractor/Manager: Date:07/30/2023
Gonzales Community Pool
Location:
205 Elko Street
Gonzales. CA 93926
Description
We hereby propose to furnish the material installations and provide the labor necessary for the completion of the following specified in the scope of work.

Amount
Scope of Work: Installation of a new Raypak boiler.

1. Disconnect the plumbing of the existing boiler

2. Remove the existing boiler from the pool room equipment

3. Rent the equipment necessary for the removal of the existing boiler as well as for the installation of the new boiler

4. If necessary the Pool Maintenance crew will be asked to remove some of the fencing

5. Install the new Raypak boiler P1262C Raypak Hi-Delta pool heater 1260BTU

6. Reroute the plumbing for the new installation
*Note: GIS Plumbing, Inc. will not be responsible for disposing of the existing dumpster at the boiler.

Materials proposed to be used:
● Raypak boiler P1262C Raypak Hi-Delta pool heater 1260BTU Exclusions:
● Permits
Packet Pg. 80
Attachment: GIS Plumbing, Inc. Quote (2788 : Resolution No. 2023-57 Critial Need for Pool Heater Replacement) **Note:

GIS Plumbing, Inc is not responsible for the plumbing labor previously completed at this location.

If, during the work process, any existing pipes or sensors are found to be damaged, or in the direct path of the new plumbing installation, reparation or other needed actions regarding the plumbing will result in an additional charge.

For any unforeseen issues that may arise, the job will come to a halt until both parties are in agreement.

Rough material and labor installation cost Total: $69,580.00 *Please note that this price is only guaranteed for a period of two weeks beginning on July 26, 2023. This is only an estimate, the price may be subject to change at any time due to an increase in material prices.

To accept this proposal, please sign and return to [email protected] Signature Date
Thank you,
GIS Plumbing, Inc.

Ismael Gonzalez
Office:(831) 905-8873
Cell: (831)776-1359
Packet Pg. 81
Attachment: GIS Plumbing, Inc. Quote (2788 : Resolution No. 2023-57 Critial Need for Pool Heater Replacement) RESOLUTION NO. 2023-57

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES DECLARING THE CRITICAL NEED TO AUTHORIZE GIS PLUMBING, INC. TO

REPLACE THE HEATER AT THE COMMUNITY POOL FOR A NOT-TO-EXCEED COST OF $81,600
WHEREAS, the Community Pool was originally constructed in 1973 and underwent a major renovation in 2016; and
WHEREAS, the pool heater was replaced during the 2016 renovation and the heater has struggled to operate over the last year; and
WHEREAS, Public Works staff coordinated with Raypac factory representatives and GIS Plumbing to diagnose why the heater was not working; and WHEREAS, Raypac factory representatives informed City staff that the cost to purchase and install replacement parts would not guarantee that the heater would work as designed and they recommended installation of a new heater; and
WHEREAS, GIS Plumbing provided a quote for $68,000 to replace the pool heater; and WHEREAS, Staff recommends adding a 20% contingency for unforeseen efforts for a total of $81,600 to authorize GIS Plumbing to replace the pool heater.

NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Gonzales that there is a Critical Need to authorize GIS Plumbing, Inc. to replace the Pool Heater at a not-to-exceed cost of $81,600.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 7
th day of August 2023, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 82
Attachment: Resolution No. 2023-57 (2788 : Resolution No. 2023-57 Critial Need for Pool Heater Replacement) City of Gonzales

CITY ATTORNEY

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 7, 2023
FROM: Michael Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Consider Adoption, Waive Reading and Read by Title Only Ordinance No. 2023- 139 an Ordinance of the City Council of the City of Gonzales Establishing and Implementing By-District Elections (Government Code Section 34886 and Election Code Section 10010)

RECOMMENDATION
Staff recommends that the City Council conduct a public hearing, and after receiving any comment from the public or Council, adopt, waive reading and read by title only, Ordinance No. 2023- 139, An Ordinance of the City Council of the City of Gonzales Establishing and Implementing ByDistrict Elections (Government Code Section 34886 and Election Code Section 10010).

BACKGROUND
Under threat of potential litigation, on July 18, 2022, the City Council adopted Resolution No. 2022-54 initiating the process for conversion from the current at-large voting system for selecting council members to a “by-district” system. Under the by-district system, the City will be divided into four districts in accordance with applicable law, with one council member residing in each district being elected solely by the residents of said district. The Mayor’s position shall continue to be elected atlarge. The by-district election system is purported to promote greater and more meaningful voter involvement in the city council election process and increase the ability of candidates to seek elected office. In order to effectuate the transition process, by law the City is required to conduct five public hearings to invite and receive public input regarding the composition of the City’s voting districts, proposed district maps and election sequencing.

Two public hearings were conducted on October 25 and December 14, 2022 at which the City’s consultant in this matter, National Demographics Corporation (“NDC”), explained the conversion process, explained the methods by which voting districts are formed, and received comments and AGENDA
ITEM
10 Packet Pg. 83
questions from the City Council and members of the public. (The first two meetings were held as joint meetings with the City of Soledad as a convenient cost-savings effort, with one meeting held in Gonzales and one meeting held in Soledad.)
A third public hearing was held on March 23, 2023, at which the Council received public input and Council comment on three draft districting maps that had been prepared and professionally reproduced by NDC. The maps were prepared in compliance with the criteria established by the Fair Maps ActElections Code Section 21601, and the maps and accompanying demographic profiles for each map have been available to the public on the City’s website since March 9, 2023. Map drafting requirements, as established by both Federal and State law, include that districts shall be substantially equal in population, shall to the extent practicable be geographically contiguous, shall to the extent practicable respect the geographic integrity of any local neighborhood or local community of interest, shall be easily identifiable and understandable to residents (bounded by natural and artificial barriers, streets and city boundaries), and to the extent practicable, shall be drawn to encourage geographical compactness in a manner that nearby areas of population are not bypassed in favor of more distant populations. After comment from a number of persons was received at the public hearing, and additional comment was provided by the City Council, the “Maroon Map” was preliminarily chosen as the favorite option by a majority of the Council.

A fourth public hearing was conducted at the City Council meeting on June 8, 2023. After receipt of public and Council comment, the Council affirmed its preferred option as the Maroon Map. The Council also requested that NDC provide the City with some guidance as to election sequencing, not only for purposes of implementing the new districting scheme, but to also correct a current imbalance in the City’s voting sequence whereby every four years, the City holds an election at which the seats of three council members and the Mayor are up for election. The election pattern has been perceived by current and former councils, as well as members of the public, as having the potential to undermine effective Council and City operations.

On June 20, 2023, the Council conducted the fifth of its public hearings on by-district elections. The Council took comment from the public, confirmed its desire to adopt the Maroon Map for districting purposes and voiced satisfaction with the election sequencing plan proposed by the City’s consultant.

Thereafter, the Council introduced, waived reading and read by title only Ordinance No. 2023-139 - “An Ordinance of the City Council of the City of Gonzales Establishing and Implementing By-District Elections (Government Code Section 34886 and Election Code Section 10010).” The Council directed staff to notice a public hearing for consideration of adoption of Ordinance No. 2023-139, which has been set for this evening.

REVIEW AND ANALYSIS
The Council will conduct a public hearing this evening after which it should consider adoption of Ordinance No. 2023-139. If adopted, said ordinance will amend Chapter 1.20 of Title 1-Administration of the Gonzales City Code to codify elections by-district in the City of Gonzales, commencing in 2024; confirm the district map to be used in the City; and establish the sequencing for implementation of bydistrict elections. The proposed plan for election sequencing will reset the election schedule so that the mayor and two council members shall be up for election every two years. It has also been prepared so that no current council member’s term of office will be impacted by the by-district conversion. This will be accomplished by phasing the conversion to by-district elections over the course of several election cycles and having the council member in one district have an initial two-year term. By-district voting will not impact the current two-year voting schedule for the Mayor’s position. The sequencing plan incorporated into Ordinance No. 2023-139 is as follows:

General Municipal Election of 2024- The council member in Council District 2 and the Mayor will be up for election.

Packet Pg. 84
General Municipal Election of 2026- Council members in Districts 1 and 3 (full term) and council member in District 4 (initial two-year term) and the Mayor will all be up for election. From this point forward, the District 1 and 3 seats will be up for election every four years.

General Municipal Election of 2028- Council members in Districts 2 and 4 and the Mayor will be up for election. From this point forward, the District 2 and 4 seats will be up for election every four years.

Please note as discussed at the public hearing on June 20th, the two-year term for the council member in District 4 in 2026 is a one-time event necessary in order to reset the election of two council members and the Mayor at all subsequent elections. The District 4 seat will be up for a four-year term at the election in 2028 and every four-year election cycle thereafter.

Explain: District mapping is arguably a means of ensuring that the elected Council better represents the heritage of the City and results in all community members having a say in maintaining the important qualities that make Gonzales a special place to live.

Explain: See above.

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

Explain: N/A.

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

ALTERNATIVES
The Council could choose to refrain from adopting Ordinance No. 2023-139 and provide staff with direction but this is not recommended. This evening’s action is the result of more than a year’s worth of work and public input on conversion to the districting process. Staff believes that all issues associated with by-district voting have been fully vetted with the public and Council, and that the ordinance before Packet Pg. 85
the Council accurately captures the Council’s wishes concerning this matter.

BUDGET IMPACT
At this point the only cost the City has incurred is the previously approved cost for the City’s consultant.

Mapping and meeting activities are covered by such costs.

PLANNING COMMISSION RECOMMENDATION
None required.

PUBLIC NOTICE REQUIREMENTS
This evening’s public hearing was noticed by publication in accordance with the law.

Attachments:

1. Public Hearing Notice

2. Ordinance No. 2023-139
Packet Pg. 86

PUBLIC HEARING NOTICE
NOTICE IS HEREBY GIVEN that the City Council of the City of Gonzales will hold a Public Hearing on Monday, August 7, 2023 at 6:00p.m. in the City Council Chambers, 117 Fourth Street, Gonzales, California to consider adoption of:

ORDINANCE NO. 2023-139

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GONZALES

ESTABLISHING AND IMPLEMENTING BY-DISTRICT ELECTIONS
(GOVERNMENT CODE SECTION 34886 AND ELECTION CODE SECTION 10010) The City Council will be considering the adoption of Ordinance No. 2023-139, which will approve a by-district election system by which members of the City Council will be selected in four newly establishment voting districts, with the mayor continuing to be elected at-large.

Ordinance No. 2023-139 also sets a schedule for the implementation of the new by-district election system and remedies circumstances in which previously three councilmembers and the Mayor were all subject to election during a single voting cycle.

A copy of the full text of the proposed ordinance has been available in the office of the City Clerk since June 26, 2023. Ordinance No. 2023-139 was introduced and read by title only at a regular meeting of the City Council on June 20, 2023.

Further information is available for review at City Hall, 147 Fourth Street, between the hours of 8:00am and 5:00pm, Monday through Friday (City Hall is closed from 12:30pm to 1:30pm).

Interested parties are invited to attend the public hearing and express opinions or submit evidence for or against the above request. Written comments may be submitted to Carmen Gil, City Manager/City Clerk, City of Gonzales, P. O. Box 647 / 147 Fourth Street, Gonzales, CA 93926 or by email at [email protected] prior to the date and time of the hearing. For further information, please call the City Clerk at (831) 675-5000.

If you challenge this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearings regarding the projects described in this notice, or in written correspondence delivered to the appropriate authority at or before these hearings.

Dated at Gonzales, California, this 26th day of July.
/s/ Mary Villegas, Deputy City Clerk
En caso que usted necesite ayuda en leer o en entender este aviso de Audiencia Pública, usted puede ponerse en contacto con la oficina del Edificio Municipal en 147 Fourth Street o llamar al número 675-5000, y el aviso será traducido para usted.

P.O. BOX 647 147 FOURTH ST. GONZALES, CALIFORNIA 93926
PHONE: (831) 675-5000 FAX: (831) 675-2644 www.gonzalesca.gov Packet Pg. 87
Attachment: Public Hearing Notice (2785 : Adoption of Ordinance No. 2023-139 District Elections)

Page 1 of 5 ends

ORDINANCE NO. 2023-139

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GONZALES

ESTABLISHING AND IMPLEMENTING BY-DISTRICT ELECTIONS
(GOVERNMENT CODE § 34886 AND ELECTION CODE § 10010)
WHEREAS, the City of Gonzales supports the full participation of all citizens in electing members of the City Council; and
WHEREAS, the City of Gonzales currently elects its four (4) members of the City Council using an at-large election system, with a separately elected mayor, where candidates may reside in any part of the City and each member of the City Council is elected by the voters of the entire City; and
WHEREAS, California Government Code Section 34886, effective January 1, 2017, permits the City Council of any city to change the City’s method of election by ordinance to a “by-district” system in which each member of the City Council is elected only by the voters in the district in which the candidate resides, and permits the mayor to continue to be elected atlarge, in accordance with California Government Code Section 34871( c); and WHEREAS, under the provisions of California Elections Code Section 10010, a city that changes from an at-large city council method of election to a by-district city council method of election requires a total of five public hearings, which includes at least two public hearings regarding potential voting district boundaries prior to the release and consideration of any draft voting district maps, and two public hearings following the release of draft voting district map(s); and
WHEREAS, after receiving a threat of potential litigation, at a regular meeting of the City Council of the City of Gonzales held on the July 18, 2022, the City Council adopted Resolution No. 2022-54 that initiated the process of establishing a by-district election system and adopting the schedule therefor; and
WHEREAS, thereafter, at special joint meetings of the City Councils of the Cities of Gonzales and Soledad held on the 25th day of October, 2022 and the 14th day of December, 2022, respectively, pursuant to California Elections Code Section 10010(a)(1), the City Council held public hearings where the public was invited to provide input regarding the composition of the City’s voting districts before any draft maps were drawn, and the City Council of the City of Gonzales considered and discussed the same; and
WHEREAS, thereafter, at regular meetings of the City Council of the City of Gonzales held on the 23rd day of March, 2023 and the 8th day of June, 2023, respectively, pursuant to California Elections Code Section 10010(a)(2), the City Council held public hearings where the public was invited to provide input regarding the content of the draft maps that had been released at least seven (7) days before each meeting, as prepared by consultant National Demographics Packet Pg. 88
Attachment: Ordinance No. 2023-139 (2785 : Adoption of Ordinance No. 2023-139 District Elections)

Page 2 of 5 ends

Corporation (“NDC”), as well as the proposed sequence of elections, and the City Council of the City of Gonzales considered and discussed the same; and WHEREAS, at a regular meeting of the City Council of the City of Gonzales held on the 20th day of June, 2023, the City Council held a final public hearing on the proposal to establish district boundaries, reviewed additional public input, formally selected the voting district map and the election sequence attached to, incorporated in, and set forth in this Ordinance, which was introduced for a first reading at the same regular meeting of the City Council of the City of Gonzales; and
WHEREAS, throughout the foregoing process, the City engaged in a significant amount of public outreach and engagement above and beyond the public hearings and other procedures required by California Elections Code Section 10010, including, but not limited to, postings of map information and diagrams and notice of City hearings on the City’s website; and WHEREAS, the purpose of this Ordinance is to enact, pursuant to California Government Code Section 34886, an ordinance providing for the election of members of the City Council of the City of Gonzales by-district in four single-member districts as reflected in Attachment A to this Ordinance, with the Mayor elected at-large, in furtherance of the purposes of the California Voting Rights Act of 2001 (Chapter 1.5 (commencing with Section 14025) of Division 14 of the Elections Code) and to implement the guarantees of Section 7 of Article 1 and of Section of Article II of the California Constitution.

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

SECTION 1. All of the recitals set forth above are true and correct to the best of its knowledge and by this reference are incorporated herein as findings.

SECTION 2. Chapter 1.20 of Title 1-Administration of the Gonzales City Code is hereby amended by adding new Sections 1.20.100, 1.20.110, and 1.20.120 to read as follows:

1.20.100 By-District Electoral System.

Pursuant to California Government Code Section 34886 and the schedule established in Section 1.20.110 of this Chapter, beginning in November 2024, members of the city council shall be elected on a by-district basis from four (4) single-member Council Districts. The mayor shall be separately elected on a City-wide basis per Section 1.20.040.

The City’s by-district electoral system shall be conducted in accordance with California Government Code Section 34871, subdivision (c).

1.20.110 Establishment of City Council Electoral Districts.

A. Pursuant to Section 1.20.100 of this Chapter, members of the city council shall be elected on a by-district basis, as that term is defined in California Government Code Section 34871, subdivision (c), from the four Council Districts described as follows, which shall continue in effect until they are amended or repealed in accordance with law:

Packet Pg. 89
Attachment: Ordinance No. 2023-139 (2785 : Adoption of Ordinance No. 2023-139 District Elections)

Page 3 of 5 ends

1. Council District 1 shall comprise all that portion of the City reflected on Attachment A.

2. Council District 2 shall comprise all that portion of the City reflected on Attachment A.

3. Council District 3 shall comprise all that portion of the City reflected on Attachment A.

4. Council District 4 shall comprise all that portion of the City reflected on Attachment A.

B. Members of the city council, excluding the mayor, shall be elected in the electoral districts established by this Section and subsequently reapportioned pursuant to applicable State and federal law.

C. Except as provided in subdivision D herein and notwithstanding any other provision of this Chapter, once this Ordinance is fully phased in, the member of the city council elected to represent a district must reside in that district and be a registered voter in that district, and any candidate for city council must live in, and be a registered voter in, the district in which he or she seeks election at the time nomination papers are issued, pursuant to California Government Code section 34882 and Elections Code section 10227.

Termination of residency in a district by a member of the city council shall create an immediate vacancy for that Council district unless a substitute residence within the district is established within thirty (30) days after the termination of residency.

D. Notwithstanding any other provision of this Section, and consistent with the requirements of California Government Code Section 36512, the members of the city council in office at the time the Ordinance codified in this Chapter takes effect shall continue in office until the expiration of the full term to which he or she was elected and until his or her successor is qualified. At the end of the term of each member of the city council, excluding the separate office of mayor, that member of the city council’s successor shall be elected on a by-district basis in the districts established in this Section and as provided in Section 1.20.120 of this Chapter.

E. Nothing in this Section shall affect the election of the mayor, who shall remain elected on a City-wide basis, in accordance with Section 1.20.040 of this Chapter of this Code.

1.20.120 Election Schedule.

Except as otherwise required by California Government Code Section 36512, the members of the city council shall be elected as follows: Council member in Council District 2 at the General Municipal Election in November of 2024; Council members in Districts 1 and 3 (full term) and council member in District 4 (initial 2 year term) at the General Municipal Election in 2026; council members in Districts 2 and 4 at the General Municipal Election in 2028, and every four years thereafter, as such Council Districts may be amended; council members in Districts 1 and 3 at the General Municipal Election in 2030 and every four Packet Pg. 90
Attachment: Ordinance No. 2023-139 (2785 : Adoption of Ordinance No. 2023-139 District Elections)

Page 4 of 5 ends

years thereafter, as such Council Districts shall be amended. The election schedule for the mayor is not affected by the schedule established in this Section.

SECTION 3. A map showing the districts described in this Ordinance and codified in Section 1.20.110 of the City of Gonzales Municipal Code is attached hereto as Attachment A and incorporated herein by reference.

SECTION 4. The City Clerk is authorized to make technical adjustments to the district boundaries that do not substantively affect the populations in the districts, the eligibility of candidates, or the residence of elected officials within any district, only when necessary to facilitate the implementation of this Ordinance. The City Clerk shall consult with the City Manager and City Attorney concerning any technical adjustments deemed necessary and shall advise the City Council of any such adjustments required in the implementation of the districts.

SECTION 5. To the extent the terms and provisions of this Ordinance may be inconsistent or in conflict with the terms or conditions of any prior City ordinance, motion, resolution, rule or regulation governing the same subject, the terms of this Ordinance shall prevail with respect to the subject matter thereof.

SECTION 6. In interpreting this Ordinance or resolving any ambiguity, this Ordinance shall be interpreted in a manner that effectively accomplishes its stated purposes.

SECTION 7. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, then such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Gonzales hereby declares the Council would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that anyone or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 8. This ordinance shall be effective thirty days after its adoption and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Gonzales within fifteen days after its adoption.

INTRODUCED AND FIRST READ at a Regular Meeting of the Gonzales City Council on the 20th day of June, 2023, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Gonzales on the 7th day of August, 2023, by the following vote, to wit:

Packet Pg. 91
Attachment: Ordinance No. 2023-139 (2785 : Adoption of Ordinance No. 2023-139 District Elections)

Page 5 of 5 ends

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. 92
Attachment: Ordinance No. 2023-139 (2785 : Adoption of Ordinance No. 2023-139 District Elections) 1 4
2 3
Johnson Crk
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AL S
S Alta St
Gloria Rd
Jersey
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Katherine St
Gonzales River Rd
Rincon Rd
Fanoe Rd
Burgundy Way
Br
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km
St
an Dr
Herold Pky
Chablis Way
Fremen Ln
Elko St
5th St
Colombard Cir
Champagne Way
Cabernet Dr
Fairview Dr
Charolais Dr
C
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ntennial Dr
Venice Way
Alta
St
Tavernetti Rd
Merlot Way
Sommer Dr
Gamay Pl
Cielo Vista Ave
Longhorn
Dr
Belden St
B St
Michael Cir
A St
C St
Fre ick Cir
Del Monte Dr
Mustang
Way
Rhone Way
10th St
Holst ay
Day St
S B
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3rd St
Center St
2nd St
S C r St
Gonzalez Cir
7th St
Amore Ct
Devon
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W
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1st St
4th St
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Zinfandel Cir
Gloria Ct
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6th St
City of Gonzales2023 Districting
National Demographics Corporation, February 22, 2023.

Proposed Election Sequence:2024: Districts 2 (Funk)2026: Districts 1 (Orozco & Worthy), 3 (Silva) and 4 (vacant) Zero-population, non-contiguousCity territory is included in District 3.

ATTACHMENT A
Packet Pg. 93
Attachment: Ordinance No. 2023-139 (2785 : Adoption of Ordinance No. 2023-139 District Elections) 02/22/2023 19:29 Page 1 of 1
Maroon
District 1
Total Pop 2,212
Deviation from ideal 46
% Deviation 2.12%
% Hisp 89.5%
% NH White 6%
% NH Black 0%
% Asian-American 3%
Total 971
% Hisp 77%
% NH White 17%
% NH Black 0%
% Asian/Pac.Isl. 6%
Total 998
% Latino est. 88%
% Spanish-Surnamed 80%
% Asian-Surnamed 1%
% Filipino-Surnamed 1%
% NH White est. 14%
% NH Black 2%
Total 728
% Latino est. 86%
% Spanish-Surnamed 79%
% Asian-Surnamed 2%
% Filipino-Surnamed 1%
% NH White est. 15%
% NH Black 2%
Total 473
% Latino est. 83%
% Spanish-Surnamed 77%
% Asian-Surnamed 2%
% Filipino-Surnamed 1%
% NH White est. 16%
% NH Black est. 2%
ACS Pop. Est. Total 2,005
age0-19 36%
age20-60 52%
age60plus 12%
immigrants 32%
naturalized 22%
english 27%
spanish 72%
asian-lang 1%
other lang 0%
Language Fluency Speaks Eng. "Less than Very Well" 21%
hs-grad 51%
bachelor 5%
graduatedegree 4%
Child in Household child-under18 54%
Pct of Pop. Age 16+ employed 61%
income 0-25k 4%
income 25-50k 21%
income 50-75k 12%
income 75-200k 51%
income 200k-plus 12%
single family 98%
multi-family 2%
rented 19%
owned 81%
Total population data from the 2020 Decennial Census.

Surname-based Voter Registration and Turnout data from the California Statewide Database.

Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.
2 2,093
-73
-3.37%
93%
3%
1%
1%
1,009
94%
3%
0%
3%
939
92%
87%
0%
2%
8%
1%
656
93%
86%
0%
2%
9%
2%
405
90%
82%
0%
1%
11%
2%
1,951
33%
57%
10%
32%
21%
19%
80%
1%
0%
28%
61%
3%
2%
66%
70%
8%
17%
16%
59%
0%
84%
16%
24%
76%
3 2,164
-2
-0.09%
93%
4%
0%
1%
1,124
87%
12%
0%
0%
712
89%
81%
0%
1%
14%
0%
516
85%
78%
0%
1%
17%
0%
340
81%
76%
1%
1%
18%
0%
2,547
35%
52%
13%
29%
18%
32%
68%
0%
0%
35%
60%
4%
1%
52%
67%
9%
30%
20%
40%
0%
58%
42%
73%
27%
4 2,195
29 1.34%
91%
5%
0%
2%
975
73%
22%
0%
4%
813
88%
82%
1%
2%
12%
0%
600
87%
81%
1%
2%
13%
0%
370
82%
76%
1%
1%
16%
0%
2,078
29%
60%
11%
35%
18%
38%
62%
0%
0%
23%
54%
3%
3%
48%
58%
22%
26%
14%
31%
8%
75%
25%
52%
48%
Total
8,664
119

5.49%
92%
5%
0%
2%
4,079
83%
13%
0%
3%
3,462
89%
83%
1%
2%
12%
1%
2,500
88%
81%
1%
1%
13%
1%
1,588
84%
78%
1%
1%
16%
1%
8,581
33%
55%
12%
32%
20%
29%
70%
1%
0%
27%
56%
4%
3%
55%
64%
11%
24%
16%
44%
5%
77%
23%
45%
55%
Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Voter Turnout
(Nov 2018)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats
Packet Pg. 94
Attachment: Ordinance No. 2023-139 (2785 : Adoption of Ordinance No. 2023-139 District Elections) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to submit a grant application to the State Water Resources Control Board (SWRCB) to fully fund the construction of certain improvements to extend city water and sewer service to Alpine Camp.

BACKGROUND
Alpine Camp is located at 52 Gonzales River Road (just south of Green Valley Farm Supply) and has 19 dwelling units. Alpine Camp is just outside the Gonzales City limits and has private on-site water and sewer systems. The property is owned by Matias and Rita Villegas. The on-site water system (permitted as River Road Water System #25) has a well that exceeds drinking water standards for nitrates. The onsite sewer septic system failed a number of years ago, so sewerage must be pumped and trucked for disposal.

Several years ago, City staff coordinated with SWRCB staff and with Monterey County Environmental Health Department staff to determine an approach to replace the private on-site water or sewer systems at the Alpine Camp. The outcome from meetings and correspondence with the SWRCB and County staff is they would like the city to provide water and sewer service to the Alpine Camp. The existing River Road W.S. #25 would be consolidated into the City of Gonzales Water System.

At the July 6, 2020 meeting, the Council approved executing a grant application with the State Water Resources Control Board (SWRCB) that fully funded the design and related consultant services to extend water and sewer service to Alpine Camp. At that same meeting, a contract with Schaaf & Wheeler was approved to design the water and sewer improvements, complete the CEQA clearance and obtain the Outof-Boundary Service approval from LAFCO.

AGENDA
ITEM
11 Packet Pg. 95

REVIEW AND ANALYSIS
The design effort was completed in November 2022 and the city has been fully reimbursed for the design phase costs. The water system improvements include construction of a 10-inch water main, three on-site fire hydrants and individual meters at every home and related improvements. The on-site well will be destroyed. The sewer system improvements include construction of a new sewer lateral, sewer lift station and the associated sewer service lines to the on-site dwelling units. The sewer lift station and on-site collection system will be privately owned. The construction cost is estimated to be approximately $1,500,000.

During the design phase, an Out of Service Area Agreement between the city and the property owner was prepared by city staff, reviewed by the City Attorney, and submitted to SWRCB staff for their review.

The Out of Service Area Agreement requires the property owner to:
• Own and be responsible for the operation, maintenance, repair and replacement of on-site water and sewer distribution system.
• Pay the monthly water and sewer rates and charges per the city’s adopted fee schedule. • Collect payments from the mobile home park residents for water and sewer service. • Not increase the number of water and sewer service connections without the city’s prior authorization.

The property owner will grant easements to the City for the new on-site pipelines.

Upon completion of the design phase for the project, SWRCB staff recommended the project be considered for 100% grant funding and provided the attached grant application forms.

As the city is the best option to provide water and service to Alpine Camp, staff recommends the City Council authorize the City Manager to submit a grant application to the SWRCB to fully fund construction of the water and sewer improvements and all related efforts (ie, consultant support, city staff time) for Alpine Camp.

Explain: The recommended action provides for the design of the extension of City water and sewer service to the Alpine Camp as the on-site systems do not meet health standards.

Explain: Extending City water and sewer service to the Alpine will replace the on-site systems that do not meet County or State health standards.

Explain: See above Vision statement.

Packet Pg. 96
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing X Yes No N/A
• Recreation Yes X No N/A
• Environment X Yes No N/A
• Education Yes No X N/A
Explain: Extending City water and sewer service to the Alpine Camp will replace the on-site systems that do not meet County or State health standards.

ALTERNATIVES
An alternative to the recommended action, is for the Council to direct the City Manager to not submit the grant agreements. Staff does not recommend this alternative, as this grant agreement fully funds construction to extend water and sewer service to Alpine Camp.

BUDGET IMPACT
The grant applications are to fully fund the construction and all support services including city staff time.

So, there is no impact to the city’s Water, Sewer, or other Funds.

CONCLUSION
Staff recommends that the City Council authorize the City Manager to submit a grant application to the State Water Resources Control Board (SWRCB) to fully fund the construction of certain improvements to extend city water and sewer service to Alpine Camp.

Attachments:

1. General Information Package

2. Technical Application Package
Packet Pg. 97
Packet Pg. 98
Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 99
Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 100 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 101 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 102 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 103 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) General Application Package
□ PLANNING IE CONSTRUCTION
I. APPLICANT INFORMATION
Applicant Name: CITY OF GONZALES
Street Address: 147 FOURTH STREET City: GONZALES State: CA . Zip+4 Code: 93926 Mailing Address: PO BOX647 City: GONZALES State: CA . Zip+4 Code: 93926 Applicant Total Population: 8576
Applicant Total Number of Service Connections: 1900
Current year median household income (MHI): $69,136
Congressional District(s): 20TH DISTRICT OF CALIFORNIA
State Senate District(s): DISTRICT 12
State Assembly District(s): DISTRICT 30
Data Universal Numbering Svstem (DUNS) No.: I Federal Tax ID No.:

Authorized Representative Name: Carmen Gil Title: City Manager Phone No.: 831-675-5000 Email Address: [email protected] Contact Person Name: Patrick Dobbins, PE, Public Works Director Phone No.: 831-675-5000 I Email Address: [email protected] Local Counsel Name: Michael Rodriquez, City Attorney
Phone No.: (510) 238-1406 Email Address: [email protected] II. PROJECT INFORMATION AND PRQPOSED SCHEDULE
Project Title: ALPINE CAMP SYSTEM CONSOLIDATION
Project Description and Objectives:

The Alpine Camp on-site water system has been in violation of the drinking water standard for nitrate and the on-site septic system is reaching the end of its service life. System consolidation would connect the property's utilities to the City of Gonzales municipal water and sewer systems. The existing water system is permitted as River Road WS #25 ..

Current Status of Plans & Specifications, Percent (%): 100% Estimated Amount of Financial Assistance Requested:

Total Project Cost (If More Than the Amount of Assistance Requested):

Water Supply Permit Number (Attachment G1): City of Gonzales CA2710007, River Road WS #25 CA2701063 Population Served by Project: 65
Currently Estimated
Project Schedule:

Financial Assistance Application
(Rev. 10/2020)
Adopt Environmental Documents:
100% Plans & Specifications:

Start of Construction/Implementation:

Complete Construction/Implementation:

Page 7 of 11 ends

Estimated or Actual Date
August 29,2022
NOVEMBER 2022
Summer 2023
Fall 2023
General Information Package
Drinking Water State Revolving Fund
Packet Pg. 104
Packet Pg. 105 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 106 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 107 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Organization Chart
City Council (5)
City Manager (1)
Finance DirectorContracted (1)
Senior Account Tech
(1)
Deputy City Manager
– Vacant (1)
Assistant City
Manager – Vacant
(1)
Building Official
(1)
Public Works
Director (1)
Admin Assistant (1)
Public Works
Supervisor (1)
Technician (1)
Mechanic (1)
Maintenance
Workers (6)
Lead Worker (1)
Community
Development
Director (1)
Development
Services Tech. /
Admin Analyst (1)
Admin Assistant (1)
Community
Engagement and
Strategic
Partnerships Director
–Vacant (1)
Sports and Senior
Programming (1)
Youth Program
Coordinator (1)
Kid Power Academy
PT
Recreation
Coordinator / Admin
Analyst (1)
Lifeguards / Rec. Aids
(PT)
Community Health
Workers (5)
Police Chief (1)
Captain (1)
Corporals (2)
Sergeants (2)
Police Services Tech
(1)
Officers (7)
Vacant (1)
Executive Assistant
to the Chief /
Records Specialist
(1)
Admin Assistant II
(1)
Fire Chief (1)
Fire Lieutenants (3)
Firefighters (3)
Volunteer
Firefighters (3)
Executive Assistant
to CM (1)
City Attorney
Packet Pg. 108
Packet Pg. 109 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 110 Attachment: General Information Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 111 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 112 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 113 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 114 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 115 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 116 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 117 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 118 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 119 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 120 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 121 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 122 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 123 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 124 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 125 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 126 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) Packet Pg. 127 Attachment: Technical Application Package (2783 : SWRCB Grant Applications for Alpine Camp) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
It is recommended that the City Council approve updated Water and Sewer Capital Improvement Programs.

BACKGROUND
The Public Works Department is responsible for planning, designing, funding, and constructing infrastructure projects that support and enhance the community. Our municipal infrastructure includes roadways, water, sewer, drainage systems, along with City buildings and parks.

A Capital Improvement Program (CIP) is a five-year plan to deliver capital projects based on community input, operations and maintenance needs, planned development projects, and City Council priorities. The CIP is comprised of all capital projects, major equipment purchases, and major studies that a city may construct, purchase, or implement over the upcoming five-year period.

A capital project is typically defined as:

1. An undertaking to construct, repair, renovate, improve, equip, furnish, or acquire a building, facility, or other physical public improvement.

2. Furnishings, apparatus, or equipment for a building, facility, or other physical public improvement.

3. Has a useful life of five years or longer; and

4. Has an estimated cost of more than $50,000.

AGENDA
ITEM
12 Packet Pg. 128
The goals for the CIP are to:

1. Maintain and upgrade infrastructure to support existing residences and businesses.

2. Develop capital projects to meet planned community growth.

3. Align capital budgets with City Council policies.

4. Broaden public participation in the budget process by seeking input from residents on the proposed projects.

5. Increase coordination between City departments and regional public agencies (i.e, TAMC).

The benefits of a CIP are:

1. It provides an in-depth review of the City’s capital and maintenance projects and related programs.

2. Shows the estimated costs for each project and thereby presents the total cost for the CIP Budget each fiscal year.

3. Identifies, prioritizes, and optimizes the funding and financing of capital projects. This includes “pay-as-you go”, impact fees, Federal grants, State grants, and debt financing.

4. Allows for systematic evaluation of all potential projects.

5. Serves as a public relations and economic development tool.

6. Helps plan for the maintenance and improvement of the City’s infrastructure.

The city’s first CIP was approved at the December 2, 2019 City Council Meeting. This item is presenting updated CIPs for the Water and Sewer Systems.

REVIEW & ANALYSIS
Updated CIPs for the Water and Sewer Systems were prepared for the following reasons:

1. The Water and Sewer Systems CIPs have been revised over the last several years to prepare for development within the city’s Sphere of Influence including the Vista Lucia Project and the Rianda Cooler Project. City consultants have looked at how to connect new developments to the existing city water and sewer systems and what improvements to the existing systems are needed.

2. For the Sewer System, the CIP includes improvements for the Industrial Wastewater System, rehabilitating the city’s Wastewater Treatment Plant (WWTP), and preparing for a new Discharge Permit for the WWTP.

3. Last November, the city engaged a consultant to prepare a Water/Sewer Rate Study and updated CIPs for the Water and Sewer Systems are a primary input to calculate new utility rates.

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The updated Five Year CIP for the Water Systems is in this table:

The updated CIP for the Sewer Systems is much more extensive than then the Water CIP due to the numerous efforts to construct the new Industrial Wastewater System, rehabilitate the existing WWTP to meet the requirements under the new Regional Board permit and improve the collection system to serve planned growth in the Sphere of Influence.

WATER CAPITAL IMPROVEMENT PLAN
Project 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 18-inch Pipeline in Johnson Canyon
Road (6,800 LF) [1] $2,000,000 $2,000,000 $0 $0 $0 $0
12-inch Pipeline from Herold Way to
Rincon Rd (1600 LF) $0 $0 $0 $0 $0 $0
12-inch Pipeline from Southeast end of
Herold Pkwy to Venice Way Park
(985 LF)
$0 $1,300,000 $0 $0 $0 $0
12-inch Pipeline in First Street from
Alta Street to Elko Street (1,540 LF) $0 $0 $800,000 $0 $0 $0 Hydropneumatic tank in Business Park $0 $0 $1,000,000 $0 $0 $0 Total Water CIP Projects $2,000,000 $3,300,000 $1,800,000 $0 $0 $0 1 – Total project cost is $5 million. $1M of available impact fee funds will be applied to the project Packet Pg. 130

WASTEWATER CIP
2023/24 2024/25 2025/26 2026/27

WASTEWATER TREATMENT
1 Wastewater Treatment Plan Expansion 0 0 0 0
2 Wastewater Rate Study 10,000 0 0 0
3 Wastewater Master Plan 25,000 275,000 0 0
4 Groundwater Monitoring Plan 15,000 0 0 0
5 Install New Groundwater Monitoring Wells at WWTP 125,000 0 0 0 6 Wastewater Treatment Plant Upgrades 80,000 425,000 300,000 0 7 Wastewater Treatment Plant Sludge Removal 0 0 0 750,000 8 Replace SCADA/Control System 0 10,000 100,000 0
9 WWTP Process Optimization 75,000 0 0 0
10 Renewal of WWTP WDR 20,000 0 0 0
11 Sampling, Analysis and Regulatory Report Plan 14,000 0 0 0 12 Spill Prevention, Emergency Responds and Staff Training Plans 7,500 0 0 0
13 Wastewater Disposal and Sludge Management Plan 14,000 0 0 0 14 WWTP and Collections Staffing Study 5,500 0 0 0
15 Vehicles 75,000 75,000 0 0
16 Annual Waste Discharge Requirement Fees (WWTP and
IWTF) 25,000 27,500 27,500 55,000
17 CUPA Spill Prevention Control and Countermeasures
Plan 0 20,000 0 0
18 Climate Change Adoption Plan 0 0 25,000 0
19 Time Schedule Compliance Plan 9,500 0 0 0
Subtotal Wastewater Treatment 501,000 833,000 453,000 805,000

COLLECTIONS SYSTEM
1 Industrial Wastewater Pretreatment Program 25,000 0 0 0 2 Update Sewer System Management Plan 10,000 0 0 0
3 Wastewater Conveyance System Re-Rating 0 0 0 0
4 Clean and Video Inspect 21" Trunk Sewer (Along Fermin Ln from Alta St to WWTP) 50,000 50,000 0 0
5 Rehabilitate Manholes on 21" Sewer (Along Fermin Ln
from Alta St to WWTP) 200,000 0 0 0
6 Sewer System Condition Assessment 150,000 180,000 180,000 180,000 Subtotal Collections System 435,000 230,000 180,000 180,000

INDUSTRIAL SYSTEM
1 Industrial Wastewater Reclamation System 10,334,000 14,684,000 0 0 Subtotal Industrial System 10,334,000 14,684,000 0 0
TOTAL WASTEWATER CIP $11,270,000 $15,747,000 $633,000 $985,000 Approval of the Water and Sewer CIPs allows for these capital projects to be used in the Water and Sewer Rate Study. Staff recommends that the City Council review and approve the updated Water and Sewer Capital Improvement Programs.

Packet Pg. 131
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: The Capital Improvement Program provides for planning, designing, funding, and constructing capital projects. It also provides programs to improve the City’s infrastructure for existing residents and businesses, and to support current and future development.

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: See Vision Statement above.

ALTERNATIVES
Provide staff with comments and feedback on adjusting any of the projects.

BUDGET IMPACT
None at this time. The design and construction of Water and Sewer CIP projects are funded from a variety of sources such as development impact fees, water and sewer rates, State and Federal grants and loans.

CONCLUSION
It is recommended that the City Council approve updated Water and Sewer Capital Improvement Programs.

Packet Pg. 132
City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
It is recommended that the City Council receive a presentation on the Water and Sewer Rate Study and provide comments and feedback.

BACKGROUND

Following accepted best Governance Accounting practices, the City uses enterprise funds to cover the costs of operating and maintaining the Water and Wastewater systems. The enterprise funds are funded through user rates and connections fees which are separate from the General Fund. The water and sewer rates are included in the city’s annual “Cost of Services Fee Schedule” and are adjusted each year based on the Consumer Price Index.

To meet its obligation of protecting public health and supporting economic growth, the city should review the rate structure to make sure they are generating the necessary capital to cover the costs to run each system. From staff’s research, the last time the City did a formal rate review and adoption was in 1986 for water and 1990 for wastewater (Water Resolution 1986-62 and Wastewater Resolution 1990-62).

Therefore, a rate review is long overdue.

The objectives of the Water and Sewer Rate Studies are to:
• Provide recommendations to adequately fund the city’s current and projected water and sewer operations, maintenance, and capital improvements.
• Ensure that revenues are adequate to meet any debt used to finance capital improvements. • Address funding maintenance of infrastructure by incorporating reasonable projections for facility replacement within the revenue requirements and rate calculations.

AGENDA
ITEM
13 Packet Pg. 133
• Review city financial policies and make recommendations where appropriate with respect to adequate reserves for operations, rate stabilization, and capital improvements. • Affirm the appropriateness of existing user categories and/or develop new or combine categories to simplify rates and ensure equity among users.
• Provide recommended rate structures based on the cost of service and State requirements. • The rate structures shall follow State Proposition 218. o Five-year projection of capital improvements, utility costs, debt payments and expected revenues.
o Proposed rate increases entail mailing a notice to property owners, holding a public hearing and mailing “protest vote” ballots to all effected property owners.

REVIEW & ANALYSIS
After completing the competitive selection process, The Council accepted staff’s recommendation and approved a contract with Lechowicz & Tseng to prepare a Water and Sewer Rate Study at their November 21, 2022 meeting. The contract was executed, and a kick-off meeting was held on December 6, 2022. Over the last eight months, Lechowicz & Tseng received and analyzed the following information:

Financial Information
• Annual revenue by customer class for 2020 through 2022 • Water and sewer cash balances as of July 1, 2022
• Updated water and sewer capital improvement plans
• Secured or expected grants or loans for capital projects • Payment schedules for outstanding debt obligations
Customer and Usage Information
• Number of residential, commercial, industrial, and lift station customers • Projected new development over the next 10 years to estimate new customers • Large industrial customers use data
• Detailed Billing data by month for the past 3 years
• Example utility bill from a typical customer
• Billing data for customers not included in the City’s billing software (ie, Gonzales School District for sewer use)
Based on Lechowicz & Tseng’s analysis of the provided information and input from City staff they are recommending changes to the City’s rate structure. The following sections describe those changes.

WATER FEES - The city’s water rates are comprised of a monthly meter fee plus the amount of water used (aka consumed). The current and proposed water rates are in the following two tables. We are recommending annual seven percent increases.

Packet Pg. 134

MONTHLY WATER METER FEE
Proposed
2023/24 2024/25 2025/26 2026/27 2027/28
Effective Date Current Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027 Jan. 1, 2028 Meter Size +7% +7% +7% +7% +7%
5/8" $22.12 $23.06 $24.68 $26.40 $28.25 $30.22
1" $23.50 $23.50 $24.68 $26.40 $28.25 $30.22
1-1/2" $24.86 $46.12 $49.36 $52.80 $56.50 $60.44
2" $26.26 $73.79 $78.98 $84.48 $90.40 $96.70
2-1/2" $27.28 $110.69 $118.46 $126.72 $135.60 $145.06
3" $29.12 $147.58 $157.95 $168.96 $180.80 $193.41
4" $30.53 $230.60 $246.80 $264.00 $282.50 $302.20
6" $31.94 $461.20 $493.60 $528.00 $565.00 $604.40

MONTHLY WATER CONSUMMATION FEE
Proposed
2023/24 2024/25 2025/26 2026/27 2027/28
Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027 Jan. 1, 2028 Volume Rates ($/ccf charged to all usage)
Residential/Commercial Current +7% +7% +7% +7% +7%
0 - 25 ccf $2.27 $2.41 $2.58 $2.76 $2.95 $3.16
26 - 30 ccf $2.35 $2.41 $2.58 $2.76 $2.95 $3.16
31 - 49 ccf $2.56 $2.41 $2.58 $2.76 $2.95 $3.16
50+ ccf $2.84 $2.41 $2.58 $2.76 $2.95 $3.16
Industrial Users
All use $2.27 $2.41 $2.58 $2.76 $2.95 $3.16
Packet Pg. 135
SEWER RATES – The current and proposed sewer rates are in the following table. The recommended increases are shown in the table.

Proposed
Fiscal Year Current 2023/24 2024/25 2025/26 2026/27 2027/28 Effective Date July 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge per Month ($/account)
Adjustment
varies +27% +27% +3% +3%
Residential $31.77 $39.48 $50.13 $63.67 $65.58 $67.55
Commercial $15.18 $11.30 $14.35 $18.22 $18.77 $19.33
Industrial $312.62 $11.30 $14.35 $18.22 $18.77 $19.33
Schools $0.91 $1.04 $1.32 $1.68 $1.73 $1.78
Commercial & Industrial Volume Rate ($/ccf) (in addition to fixed charge) $2.40 $3.38 $4.29 $5.45 $5.61 $5.78
Note: Schools are billed annually rather than monthly based on reported average daily attendance.

To follow the process mandated by Proposition 218, the schedule to discuss and adopt new rates is:

August 7, 2023 Present initial rate recommendations at City Council meeting September 18, 2023 Community Outreach Meeting including Industrial Facilities October 2, 2023 Present follow-up report at City Council meeting October 20, 2023 Mail Prop 218 notice of rate hearing to customers October/November 2023 45-day Prop 218 waiting period; conduct ratepayer outreach December 4, 2023 City Council meeting for Proposition 218 hearing January 1, 2024 Implement new rates absent a majority protest The presentation that staff and consultant will make at the Council meeting is attached for your reference.

Explain: Completing the rate study and adjusting rates to adequately fund the operations and maintenance of each system is fundamental to maintaining a safe and clean community for all residents and businesses.

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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 recommended rate structures will be based on the cost of service and State requirements.

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

ALTERNATIVES
Alternatives include:
• Adjust the proposed increases to the water or sewer rates. • Provide comment and feedback on the various planned Capital Improvement Project.

BUDGET IMPACT
There is no budget impact to this evening’s presentation.

CONCLUSIONS
It is recommended that the City Council receive a presentation on the Water and Sewer Rate Study and provide comments and feedback.

Attachments:

1. Presentation
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Water and Sewer Rate Study
Progress Update
City Council Workshop
August 7, 2023
Alison Lechowicz
Project Manager

CITY OF GONZALES
Packet Pg. 138 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Background
▪ Last comprehensive water and sewer rate study was conducted in 1989 ▪ Last water and sewer CPI rate increase was July 1, 2023 (+5.3%) ▪ The City is facing significant growth from industrial customers and needs to re-evaluate rates for service expansion
▪ Water and Sewer Funds are Enterprise Funds -> should be self-supported by rates
▪ Rate study will cover a 5-year period
▪ First rate change January 1, 2024
▪ January 1 of 2025, 2026, 2027, 2028
Packet Pg. 139 2 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Proposition 218
▪ Governs how property-related charges are adopted
▪ Covers rates over a maximum 5-year period
▪ Rates must be based on the reasonable cost of service and proportionally recover costs based on how customers take service
▪ Tiered water rates cannot be adopted unless based on the actual cost to deliver water at various levels of use (San Juan Capistrano legal ruling) ▪ Procedural requirements:
▪ Conduct a rate study
▪ Mail a notice to property owners
▪ Hold a public hearing a minimum of 45 days after notice is mailed ▪ Rates cannot be adopted if more than 50% of ratepayers submit written protests Packet Pg. 140 3 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Water Cost of Service Analysis FY2024
▪ Estimated current reserves of $3.0M as of July 1, 2023 ▪ Last year, revenues of about $2.3M covered operating costs of $2M and provided $300,000 net revenues for
▪ Debt repayment of $229,000
▪ $35,000 of capital projects
▪ $57,000 contribution to reserves
▪ Upcoming cost of service increases
▪ Inflationary cost increases for services and supplies ▪ $6.1M over the next three years for pipeline replacements plus $1M for a new tank ▪ These major projects are proposed to be debt funded resulting in new debt service payments of about $450,000 annually
▪ Up to $250,000 for vehicle replacements and miscellaneous repairs ▪ Proposed rate revenue increases of +7% per year
Packet Pg. 141 4 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Review of Current Monthly Water Rates
5 Meter Fees July 1, 2023
Residential Per Meter
5/8" meter $22.12
1" meter $23.50
Multi-Family
1-1/2" meter $24.86
2" meter $26.26
2-1/2" meter $27.28
Commercial
3" meter $29.12
4" meter $30.53
6" meter $31.94
Unmetered Service
/Standby
$33.30
Packet Pg. 142 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Review of Current Monthly Water Rates
6 Consumption Fees* July 1, 2023
Residential/Commercial Charge per Unit
0 - 25 ccf $2.27
26 - 30 ccf $2.35
31 - 49 ccf $2.56
50+ ccf $2.84
Industrial Users
All use $2.27
*One unit = 100 Cubic Feet (ccf) = 748 gallons
About 90% of single
family residential use
falls in Tier 1
Packet Pg. 143 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Proposed Water Rate Adjustments
▪ Adopt a rate structure compliant with Proposition 218 / San Juan Capistrano legal ruling
▪ Current tiers are not cost-justified; do not reflect water use patterns ▪ Eliminate the tiers
▪ Customers will pay uniform consumption charges (i.e. same $/ccf charge for all levels of use)
▪ Realign the meter fee with max capacity of each meter size ▪ Larger meter sizes will pay higher meter fees
▪ 5/8” and 1” meters will be charged the same meter fees Packet Pg. 144 7 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Proposed Water Meter Fees
8 Proposed
Fiscal Year Current 2023/24 2024/25 2025/26 2026/27 2027/28 Effective Date Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027 Jan. 1, 2028 Meter Size +7% +7% +7% +7%
5/8" $22.12 $23.06 $24.68 $26.40 $28.25 $30.22
1" $23.50 $23.50 $24.68 $26.40 $28.25 $30.22
1-1/2" $24.86 $46.12 $49.36 $52.80 $56.50 $60.44
2" $26.26 $73.79 $78.98 $84.48 $90.40 $96.70
2-1/2" $27.28 $110.69 $118.46 $126.72 $135.60 $145.06
3" $29.12 $147.58 $157.95 $168.96 $180.80 $193.41
4" $30.53 $230.60 $246.80 $264.00 $282.50 $302.20
6" $31.94 $461.20 $493.60 $528.00 $565.00 $604.40
Packet Pg. 145 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Packet Pg. 146 9 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Packet Pg. 147 10 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Packet Pg. 148 11 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Packet Pg. 149 12 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Proposed Water Volume Rates
13 Proposed
Fiscal Year Current 2023/24 2024/25 2025/26 2026/27 2027/28 Effective Date Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027 Jan. 1, 2028 Volume Rates ($/ccf charged to all usage)
Residential/Commercial +7% +7% +7% +7%
0 - 25 ccf $2.27 $2.41 $2.58 $2.76 $2.95 $3.16
26 - 30 ccf $2.35 $2.41 $2.58 $2.76 $2.95 $3.16
31 - 49 ccf $2.56 $2.41 $2.58 $2.76 $2.95 $3.16
50+ ccf $2.84 $2.41 $2.58 $2.76 $2.95 $3.16
Industrial Users
All use $2.27 $2.41 $2.58 $2.76 $2.95 $3.16
Packet Pg. 150 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Water Rate Survey – Typical Bills
Packet Pg. 151 14 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Sewer Cost of Service Analysis FY2024
▪ Estimated current reserves of $1.2M as of July 1, 2023 ▪ Estimated operating revenues of $2M to cover about $1.1M of operating costs plus $100,000 to $200,000 of capital outlay
▪ Major upcoming capital projects:
▪ SRF loan will be used to construct new industrial treatment plant ($25M) ▪ New debt service cost of $1.25M expected to begin in FY2026 ▪ In addition, the sewer utility will fund $3.6M of improvements to the existing treatment plant and collection system
▪ Proposed rate revenue increases:
15 2023/24 2024/25 2025/26 2026/27 2027/28
Rate Revenue
Increase 27.0% 27.0% 27.0% CPI (3%) CPI (3%)
Packet Pg. 152 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Review of Current Sewer Rates
16 Customer Class Rates [1]
Residential $31.77 + $2.35 for Lift Pump Users (if applicable) Commercial $15.18 + $2.40 per unit
Industrial $312.62 + $2.40 per unit
Schools $0.91 per Student Average Daily Attendance [2]
1 - Effective July 1, 2023
2 - Schools are billed annually rather than monthly
Packet Pg. 153 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Sewer Rate Design
17 ▪ Proposed customer service fee of $11.30/month for all customers ▪ Plus a flow charge of $3.38 per ccf to cover the costs to convey, treat, and dispose of wastewater
▪ Average residential flow is 205 gallons per day = 8.336 ccf/month Estimated
Monthly
Flow (ccf)
Flow Charge
($/ccf)
Total Flow
Charge
Customer
Service Fee
($/month)
Total
Monthly
Charge

8.336 x $3.38 $28.18 $11.30 $39.48
Packet Pg. 154 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Proposed Sewer Rates
18 Proposed
Fiscal Year Current 2023/24 2024/25 2025/26 2026/27 2027/28 Effective Date July 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge per Month ($/account)
+27% +27% +3% +3%
Residential $31.77 $39.48 $50.13 $63.67 $65.58 $67.55
Commercial $15.18 $11.30 $14.35 $18.22 $18.77 $19.33
Industrial $312.62 $11.30 $14.35 $18.22 $18.77 $19.33
Schools $0.91 $1.04 $1.32 $1.68 $1.73 $1.78
Commercial & Industrial Volume Rate ($/ccf) (in addition to fixed charge) $2.40 $3.38 $4.29 $5.45 $5.61 $5.78
Note: Schools are billed annually rather than monthly based on reported average daily attendance (ADA) Packet Pg. 155 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Sewer Rate Survey
Packet Pg. 156 19 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Average Water + Sewer Utility Bill
20 Current
(July 1, 2023)
Proposed
(Jan 1, 2024) Increase
Water Meter Fee
(5/8”) $22.12 $23.06 $0.94
Current
(July 1, 2023)
Proposed
(Jan 1, 2024) Increase
Water Meter Fee
(5/8”) $22.12 $23.06 $0.94
Water Usage
Charges
(12 ccf)
$27.24 $28.92 $1.68
Current
(July 1, 2023)
Proposed
(Jan 1, 2024) Increase
Water Meter Fee
(5/8”) $22.12 $23.06 $0.94
Water Usage
Charges
(12 ccf)
$27.24 $28.92 $1.68
Sewer Charges $31.77 $39.48 $7.71
Total $81.13 $91.46 $10.33
Packet Pg. 157 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Rate Study Schedule
▪ August 7 – Present initial rate recommendations to City Council ▪ September TBD – Community Outreach Meeting
▪ October 2 – Present final report to City Council
▪ October 20 – Mail Prop 218 notice of rate hearing to customers ▪ October/November – 45-day Prop 218 waiting period; conduct ratepayer outreach
▪ December 4 – Proposition 218 hearing
▪ January 1 – Implement new rates absent a majority protest Packet Pg. 158 21 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop) Questions?
Packet Pg. 159 22 Attachment: Presentation (2782 : Water and Sewer Rate Study Workshop)

Gonzales City CouncilAugust 7, 2023

Gonzales City Council
August 7, 2023