Agenda packet — Gonzales City Council, February 20, 2024

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
TUESDAY, FEBRUARY 20, 2024
5:00 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
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/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943. 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]

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.

2. The City Council will recess to closed session to confer with legal counsel regarding litigation pursuant to Government Code Section 54956.9 (d)(2) and is hereby of the opinion that a significant exposure to litigation exists.
*
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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RECONVENE TO OPEN SESSION

BUSINESS FROM THE PUBLIC

3. 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.

4. Approve the Joint City Council and Successor Agency - Regular Meeting - February 5, 2024 Minutes

5. Approve City Accounts Payable Warrants #49772-49850

6. City Manager’s Report

7. Community Development Department Activity Report

8. Community Engagement & Recreation Departments Activity Report

9. Fire Department Activity Report

10. Police Department Activity Report

11. Public Works/City Engineer Department Activity Report

12. Authorize Execution of an Agreement between the City of Gonzales and Atlas Organics to Procure Organic Materials to the City in Compliance with SB 1383

13. Authorize the Purchase of a John Deere Skid Steer with Implements from RDO Equipment Company for $85,283, and Approve the Surplus Sale of the Existing John Deere Tractor

14. Authorize Execution of a Non-Exclusive Master Services Agreement Between the City of Gonzales and NV5 Consultants; and Approve Execution of Task #1 for Grant Management and Electric Vehicle Charging Station Design Services for a Not-to-Exceed Fee of $205,000

15. Consider Approval of Resolution No. 2024-05, A Resolution of the City Council of the City of Gonzales Ratifying a Proclamation of the Existence of a Local Emergency Due to Winter Storms/Atmospheric River

BUSINESS FROM CITY COUNCIL

16. Consider Appointment to the Planning Commission

17. Consider the Creation of a Fireworks Committee

REGULAR AGENDA

18. Progress Report on the Emergency Repairs at the City’s Wastewater Treatment Plant a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Receive report

19. Consider Approval of Resolution No. 2024-04, A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Lease Agreement Between the City of Gonzales and Pisoni Farms for a City-Owned Parcel Adjacent to Canyon Creek Park
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2024-04
*
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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20. Authorize the Execution of a Consulting Services Agreement between the City of Gonzales and Harris & Associates to Provide Assessment Engineering Services for the California Breeze Benefit Assessment District and the California Breeze Parks and Open Spaces Assessment District, for a Not-to-Exceed Fee of $42,000, which Includes a Contingency Budget of $3,350 a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Authorize Execution of the Consulting Services Agreement

GONZALES YOUTH COUNCIL UPDATES

21. Oral Communication

BUSINESS FROM CITY COUNCIL

22. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
b. Association of Monterey Bay Area Governments
c. Monterey Salinas Transit

23. Oral Communications

BUSINESS FROM CITY MANAGER

24. Oral Communications

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

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

25. The City Council will recess to closed session to confer with legal counsel regarding litigation pursuant to Government Code Section 54956.9 (d)(2) and is hereby of the opinion that a significant exposure to litigation exists.

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 AND

GONZALES SUCCESSOR AGENCY
MONDAY, FEBRUARY 5, 2024
6:00 P.M.

CALL TO ORDER
The meeting was called to order at 6:00 PM by Mayor Jose L. Rios.

PLEDGE OF ALLEGIANCE
Council Member Orozco led the flag salute.

1. ROLL CALL
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

YOUTH COMMISSIONERS
Luke Naegle.

STAFF PRESENT
City Manager Carmen Gil, City Attorney Michael F. Rodriquez (via zoom), Community Development Director 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, and Police Chief Keith Wise.
* Successor Agency Item
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Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
4

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PRESENTATIONS

2. Certificates of Recognition - Gonzales High School Cross Country and Football Athletes Mayor Pro Tem Funk assisted Mayor Rios with the certificates of recognition to Cross Country Athlete Giovanni Ochoa, and Football Athletes Juan Pablo Acosta Ayala and Adrian Perez.

Certificates of recognition were also presented to Cross Country Coach Margie Daniels, Cross Country Assistant Coach Mike Ramirez, and Football Coach Eddy Ramirez.

The Coaches elaborated on the accomplishments of the athletes.

3. Introduction of New City Employees
Public Works Director Dobbins introduced Maintenance Workers Frankie Nava and Efrain Nunez who are both Gonzales residents.

Maintenance Workers Nava and Nunez appreciated the opportunity to work for the City.

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.

Ruben Zurita commented about talking to the Council in August about the dangers of the illegal fireworks and he asked about establishing a fireworks safety committee and placing it on the next agenda.

Henry Martinez Sr., 112 Tenth Street, commented about Council Member Orozco running for a Chair position somewhere and asked if she can hold two elected offices. He also commented about being told by the Council and Chief of Police that it will take six months for the officer to be trained to fly the drone, but he spotted the drone flying three days, and asked why they were flying it if there's no missing person or fireworks or crime. He said they lied to him.

Mayor Rios asked Police Chief Wise to comment on why the drone was out there, which he already knew the reason and understood it, but he wanted him to address it to Mr. Martinez.

Packet Pg. 5
Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA)

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Police Chief Wise mentioned that some people can say what they want to say but it’s not necessarily the truth. He explained we have received training through the Federal Government FAA, we have a certified pilot in the Police Department and it wasn’t an easy task to achieve but we’ve done it. He said we have a tight policy regarding when we use the drone and under what circumstances. Part of that, ongoing training requires practice flights which consist of a couple of minutes getting it airborne and landing it three times a month. And because this is new to us, he wants to continue the proficiency and use of the drone, so he has allowed extra time during the training days to do more than just up and down flight. It was deployed three times for training purposes, on New Year’s Eve and New Year's morning, so we are within the guidelines and requirements to use the drone. He reiterated that the policy is on the website and Facebook.

Mayor Rios assumed training was for all of the officers not just one.

Police Chief Wise responded it was just one pilot and he’s looking at another one as a backup, but for now it’s just one pilot and anyone who has questions, can reach out to him to answer their questions.

City Manager Gil added there was a process for certification and that’s why we have only one person certified so far. She said we can get others but it’s a long and lengthy process to achieve certification and to understand the rules and regulations on how the drone could be used by the Police Department.

Mayor Pro Tem Funk mentioned we need to go back to public comment and we shouldn’t be taking questions.

Council Member Orozco also felt uncomfortable because this item was not on the agenda and not open for public comment.

Mayor Rios said he was asking questions about the training.

Mayor Pro Tem Funk said the point was because it was not an agendized item.

Mayor Rios thanked Police Chief Wise for clarifying and opened the public comments again.

Roman Barba, 123 Second Street, commented about Rosa talking about poop all over the City; agreeing with her because poop is all over the sidewalks and parks; noticed people walking some dogs without a leash; neighbor’s dog pooping on his yard; and asked who was in charge of making sure dogs were on leashes. He also asked if they will let the public know on the website when they’re going to be flying the drone and which officer is getting trained.

Mayor Rios announced that the Council needed to add an emergency item to the agenda, which is Resolution No. 2024-03, and it will be Item 13A regarding Emergency Repairs to the Wastewater Treatment Plant.

City Attorney Rodriquez informed that the Council needed to take action to add this item to the agenda and we needed a motion. He mentioned that the Government Code allows to add an item to the agenda on an emergency basis by way of a formal vote and it needs to be a four-fifths vote, which in our case would be four members of the Council. He added that the necessary prerequisites to add an item to the agenda is that there was a need to take immediate action and no one at the agency knew about the item until after the agenda was posted, and he can represent to the Council on behalf of the staff, that this is the situation here, and there’s clearly as they will Packet Pg. 6
Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA)

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hear from Public Works Director Dobbins during his oral report, the need to take immediate action today. He recommended taking a vote to add the item to the agenda which is related to the Atmospheric River that hit the whole State as well as Monterey County.

RESULT: APPROVED [UNANIMOUS] to add Resolution No. 2024-03 to the agenda as Item 13A
MOVER: Maria Orozco, Council Member
SECONDER: Liz Silva, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco

CONSENT AGENDA

5. Approve the Joint City Council and Successor Agency - Regular Meeting - January 16, 2024 Minutes

6. Approve City Accounts Payable Warrants #49694-49771

7. Approve Successor Agency Accounts Payable Warrants #1684-1685

8. Consider Approval of an Amendment to the Agreement with T-Mobile After Supporting the Hot Spot Program for 3.5 Years, Saving the City $140,000 and Terminating it in June of 2024

9. Consider Approval of an Agreement Between the City of Gonzales and NHA Advisors to Provide Municipal Advisor Services Related to the Community Center Complex Project for a Not-toExceed Amount of $95,000

10. Consider Approval of an Amended Subrecipient Agreement with the County of Monterey to Receive an Additional $122,912 in Community Development Block Funding for Phase 1 of the Community Center Complex Project
Council Member Orozco asked regarding Warrants #49738 and #49739 for PG&E, if those were for two separate buildings.

City Manager Gil responded some are for multiple invoices but she can get that information.

Public Works Director Dobbins added that also includes our streetlights.

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

REGULAR AGENDA

11. Community Center Complex Project Progress Report
Staff Report: Public Works Director Dobbins presented the staff report.

Branden Harrell, WRNS Studio, presented a powerpoint presentation and went over the schedule snapshot, played a fly-through video of the Community Center Complex, explained the site plan, exterior and interior views, exterior materials, and donor acknowledgment.

Public Comment: Henry Martinez Sr. wanted to make sure that development companies are going to be solvent and not make mistakes like Salinas and King City. *
*
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Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA)

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Roman Barba, 123 Second Street, believed these buildings were cookie-cutter, and he hated the design. He commented about his family living on Rincon Road and wondered if there was going to be a sound wall; and talked about showing the original design to people during election.

Council Discussion: Council Member Orozco wanted to make sure that when we show information or pictures to the public, that they are actual approved designs to not mislead folks into believing that is what’s going to be built, and she believes that’s wrong.

The Council received the presentation. Mayor Rios asked staff to keep in mind the trees concern he has regarding magnolia trees which he hopes are not considered in this project because they lift sidewalks and curbs. If considered, he suggested watering them deeply so the roots follow the water.

Public Works Director Dobbins added staff is aware of that and every tree will have a root barrier that directs the roots.

12. Consider Preparation of City Council Rules and Procedures Staff Report: City Attorney Rodriquez presented the staff report.

Public Comment: There was none.

Council Discussion: There was none.

It was the Council’s consensus to direct staff to prepare the documents necessary.

13.A Consider Approval of Resolution No. 2024-03, A Resolution of the City Council of the City of Gonzales Declaring an Emergency Pursuant to Section 22050 of the Public Contract Code and Section 316.050 of the Gonzales Municipal Code Authorizing Emergency Work at the City Wastewater Treatment Plant in an Amount Not to Exceed $250,000 Staff Report: Public Works Director Dobbins reported that the treatment plant had been operating fine until ten days ago when staff noticed the disposal fields getting full due to the wet winter last year and this year. He explained the process of the three disposal fields and the emergency work that needs to be done.

City Attorney Rodriquez reiterated that a resolution of this type requires a super majority for approval so it requires a four-fifths vote to pass.

City Manager Gil added that this would be coming out of the sewer impact fund, but staff is going to look for any funding sources that become available as a result of damages from the storms.

Public Comment: There was none.

RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Council Member
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco Packet Pg. 8
Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA)

Page 6 of 8 ends

GONZALES YOUTH COUNCIL UPDATES

13. Oral communications
Youth Commissioner Naegle reported on the meeting between the GYC and the construction firm where they explained to the group the same information that was presented tonight; announced the alcohol and drug use prevention week at the High School from February 20th through the 23rd; and the Mental Health project manuscript.

BUSINESS FROM CITY COUNCIL

14. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
Mayor Rios reported on the discussion around Highway 68 and 156, SOS Project timeline taking more or less 8-10 years before anything can be done with that project; and people opposing Highway 68 roundabouts.
b. Mayor Selection Committee
Mayor Rios reported on the meeting that was held at the City of Salinas Police Department and elaborated on the nice facility.
c. Salinas Valley Recycles
Council Member Silva reported on their January 18th meeting where they re-elected President Anthony Rocha, Vice President Ben Jimenez, and Alternate Vice President Glen Church; preliminary information for their upcoming budget; and announced the next meeting on February 15th at 6pm.
d. Central Coast Community Energy
Mayor Rios reported they had closed session at their last meeting to discuss real estate.

15. Oral Communications
Council Member Worthy reported on the Mayors and Council Academy she attended along Council Member Silva and City Manager Gil, where she learned a lot and was interested in the state of the State.

Council Member Silva mentioned she hadn’t attended conferences in a while and she learned a lot at this academy, the big take away being that we're not alone in the housing and road conditions issue, neither in the lack of community to come forward and serve on the Council or committees. She encouraged people to come forward and be part of the solution, and also encouraged them to make sure to register to vote and if they are registered, to please vote. She also elaborated on the great time she had at the Chair Yoga last Saturday at the Vosti Center and encouraged people to attend the event taking place for the next several Saturdays.

Council Member Orozco thanked City Manager Gil and Public Works Director Dobbins for doing a presentation to some members of the Meyer Park community last month on several issues brought up last year, and what the City has done to resolve some of the issues. She said folks appreciated the information. She announced the Annual Lenten Dinners starting right after Ash Wednesday and for more information she and Council Member Silva have tickets. She mentioned that all Cities are struggling financially and looking for ways to find new revenue sources, and we have had discussions a while back about some of our leases in City-owned properties and conversations about what the monthly rental fees are for some of those properties. She asked if it was possible to bring back maybe as an informational report on where we are on those. And one that came to her mind was the three-year lease coming up for the building next door. She wanted to know where we are and how we can take a look those leases.

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Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA)

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Mayor Rios added to Council Member Orozco's theme regarding fees. He asked the Police Department why there's a semi parked over at Kaufman & Broad and the guys comes on a regular basis to pay the $35 dollars and continues to park there. He thinks we need to start upping what we charge folks because that amount he can probably write as a business expense. And same things with the RVs which they move then move back and it appears the fee is not enough to dissuade folks to continue to do that. He also wants to discuss and agendize for next meeting to begin discussing illegal fireworks, maybe a committee.

Council Member Orozco shared what the City of Seaside just did, which was an ordinance where they don't allow fireworks after 10pm.

Mayor Rios also shared the concern about cars parked across sidewalks and driveways and kids having to go around them. He shared it with City Manager Gil and said he would like to see an Officer give them tickets and up the fee for consistent violators. He believes this is the only way we can discourage folks from blocking sidewalks, and if we’re looking at how to increase funds in our City, this is more than fair and legitimate.

Council Member Orozco added there were also basketball hoops on the streets.

BUSINESS FROM CITY MANAGER

16. Oral Communications
City Manager Gil reported on the Academy she attended with Council Members Silva and Worthy where she picked up a lot of good information and more ideas to bring forth. She thanked all staff that worked tirelessly over the weekend to make sure the City stayed safe. She also gave a shoutout to Public Works Lead Worker Valladarez for getting a family in need some live saving equipment during the outage. She also thanked Blue Zones and Alliance on Aging for bringing the Chair Yoga Program, which people really enjoyed and she has been asked what about others, so we might have to expand the age. She announced she'll be attending the League of California Cities City Managers Conference this week from Wednesday through Friday. She also said staff will be announcing two openings in the Measure K Committee. She asked the community to be safe out there during the storms, protect themselves and loved ones and continue to take care of each other.

Community Development Director Kinison Brown reported on the Planning Commission workshop held on January 22nd on the Housing Element that is out for public review through February 12th; and the Planning Commission meeting on that day. He announced the release of the Vista Lucia EIR on February 2nd.

Mayor Rios asked if we have filled the Planning Commission seats.

City Manager Gil responded that staff received two letters of interest and will be bringing them to the Council for consideration at the next meeting. She clarified there was one vacancy only.

Police Chief Wise mentioned he understood on the ticket situation Mayor Rios brought up earlier but unfortunately those amounts are based on the California schedule and elaborated on that. He clarified that tickets have been issued because that’s been a constant issue. He said that unfortunately, there are repeat customers with RVs, trailers, etc.

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Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA)

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He also announced the partnership with the SPCA for low-cost cats spay and neuter event next Saturday, February 10th at the Police Department for $35, and folks have to make an appointment by calling the SPCA at 831-264-5400.

ADJOURNMENT
The meeting was adjourned at 8:03 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
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Minutes Acceptance: Minutes of Feb 5, 2024 6:00 PM (CONSENT AGENDA) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 10:28 am
Date: 02/02/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
49772 02/02/24 Printed 4343 4LEAF, INC. Bldg Plan Check Services 10,110.94 AGILE OCCUPATIONAL 109.00

MEDICINE PC
49773 02/02/24 Printed 4362 Vaccine
49774 02/02/24 Printed 108 AIRGAS Propane & Oxygen 238.36 49775 02/02/24 Printed 2 ALL - SAFE ALARMS Monthly Monitoring 400.00 ALVAREZ TECHNOLOGY 1,720.70
GROUP INC.
49776 02/02/24 Printed 2180 Computer Lease
ALVAREZ TECHNOLOGY 1,100.01
GROUP, INC.
49777 02/02/24 Printed 3893 FundBalance Migration
49778 02/02/24 Printed 137 AMERICAN SUPPLY CO. Supplies 884.79 49779 02/02/24 Printed 341 PATRICK ASKEW Retiree Medical Insurance Feb. 2024 361.00 49780 02/02/24 Printed 2830 AT&T Corp Yard Acct # 308309956 95.59 49781 02/02/24 Printed 4117 AT&T Phone Service January 2024 801.55 49782 02/02/24 Printed 86 AT&T Telephone Charges 12/19/23 -1/18/24 1,302.13 49783 02/02/24 Printed 3168 AUTOZONE INC. Generator Maint. 680.82 49784 02/02/24 Printed 522 BECK'S SHOE STORE Boots - M. Espinoza 195.01 49785 02/02/24 Printed 4359 HERBERT BOWEN Per Diem: PSP Driving Training 35.00 1/30/2024
49786 02/02/24 Printed 3073 C4 CONSULTING GYC Leadership & Development 5,750.00 49787 02/02/24 Printed 372 CALBO CALBO Code Enforcement Training 80.00 CASNER EXTERMINATING, 780.00
INC.
49788 02/02/24 Printed 889 Correction of Overpayment of Invoice # 733302
49789 02/02/24 Printed 390 CITY OF SOLEDAD Stormwater Training 1,141.25 49790 02/02/24 Printed 4165 NATHAN CORDOBA Per Diem: PSP Driving Training 35.00 1/30/2024
49791 02/02/24 Printed 1482 CSC OF SALINAS Sewer - Maint. Supplies 76.23 49792 02/02/24 Printed 1821 CSK AUTO, INC. PW Van Maint. 158.40 CYPRESS COAST FORD 277.99

LINCOLN
49793 02/02/24 Printed 4063 Dump Truck Maint.
49794 02/02/24 Printed 3028 D & J TIRE SERVICE Back-up Generator 949.33 DE LAGE LANDEN PUBLIC 24,855.33

FINANCE
49795 02/02/24 Printed 2895 Solar Lease
49796 02/02/24 Printed 4184 DIMES MEDIA CORPORATION Sports Sponsorships - Sept 600.00 49797 02/02/24 Printed 197 FARMERS FOOD MARKET Lunch 53.49 GONZALES ACE HARDWARE 231.94
INC.
49798 02/02/24 Printed 3274 Marker & Water Pressure Gauge GONZALES TIRE & AUTO 17.38
SUPPLY
49799 02/02/24 Printed 3477 PW #3 Oil
49800 02/02/24 Printed 1109 GONZALES UNIFIED SCHOOL Gym Use - Nov 2023 17,936.47 49801 02/02/24 Printed 2599 YSAURO GONZALES Uniform Cleaning 354.50 49802 02/02/24 Printed 2256 GRAFIX SHOPPE Graphics for Uniforms 515.00 49803 02/02/24 Printed 4071 GREAT AMERICA FINANCIAL Copier Lease 1,058.31 49804 02/02/24 Printed 3228 HARRIS & ASSOCIATES, INC. CM Services 7,348.00 49805 02/02/24 Printed 3485 INFOSEND, INC. Utility Bill Stuffer - Water & Sewer Rates 536.06 49806 02/02/24 Printed 4381 JOHN F. OTTO, INC. Community Center Design 534,534.81 49807 02/02/24 Printed 3828 LYNN A. KOVACH Vista Lucia Tentative Map 560.00 49808 02/02/24 Printed 1965 SANTIAGO MELGOZA Reimb Drone Training Equipment 174.62 49809 02/02/24 Void 02/02/24 Void Check 0.00
49810 02/02/24 Printed 72 MISSION UNIFORM SERVICE Towels & Mats 1,230.62 49811 02/02/24 Printed 3970 MNS ENGINEERS, INC. Stormwater Permit 35.00 MUNICIPAL EMERGENCY 765.97

SERVICES
49812 02/02/24 Printed 4376 Uniforms
49813 02/02/24 Printed 2525 MY JEEP CHRYSLER DODGE Sewer PW Maint. Supplies 210.64 49814 02/02/24 Printed 4414 CAROLINA NUNEZ Youth Basketball Reimbursement 70.00 49815 02/02/24 Void 02/02/24 Void Check 0.00
49816 02/02/24 Printed 91 P. G. & E. Utilities Acct # 0006301263-7 8,686.20 49817 02/02/24 Printed 3195 PRECISION EMPRISE, LLC Sidewalk Offset Repair 3,091.00 PRO-WEST & ASSOCIATES, 4,999.00
INC.
49818 02/02/24 Printed 4413 GIS Support
PUBLIC AGENCY 506.71

RETIREMENT
49819 02/02/24 Printed 3194 PARS Admin Fees
AGENDA
ITEM
Packet Pg. 12
Attachment: Warrants #49772-49850 (2922 : Approve City Accounts Payable Warrants #49772-49850) 5 City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 2
Time: 10:28 am
Date: 02/02/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
49820 02/02/24 Printed 1021 PURCHASE POWER Postage 96.44 49821 02/02/24 Printed 2878 RAFA'S AUTO BODY Rec. Van Rear Door Repair 646.98 49822 02/02/24 Printed 4092 RAZZO LINK, INC. Internet Service - Jan 160.13 49823 02/02/24 Printed 4325 TAYLOR RIVAS Per Diem: PSP Driving Training 35.00 1/30/2024
49824 02/02/24 Printed 4341 DAVID RIVERA Per Diem: PSP Driving Training 35.00 1/30/2024
SAFETY-KLEEN SYSTEMS, 240.86
INC.
49825 02/02/24 Printed 189 Shop Cleaning Supplies
SALINAS VALLEY PRO 69.90
SQUAD
49826 02/02/24 Printed 2979 Uniform Shirt for Cordoba
SALINAS VALLEY SOLID 33,247.98
WASTE
49827 02/02/24 Printed 258 Solid Waste Fees - Dec
SCHAAF & WHEELER, 13,142.50

CONSULTING
49828 02/02/24 Printed 3894 Water System Support
49829 02/02/24 Printed 2449 SMITH & ENRIGHT Monthly Landscape Maint. - Jan 23,420.25 49830 02/02/24 Printed 2673 SPECTRUM Internet - Feb. 2024 Acct # 170000701 1,199.00 49831 02/02/24 Printed 3670 T-MOBILE City Cell Phones Acct # 963044810 961.56 49832 02/02/24 Printed 3670 T-MOBILE Hotspot # 1 - Jan. Acct # 967822032 9,414.02 49833 02/02/24 Printed 3670 T-MOBILE Hotspot # 2 - Jan. Acct # 967822590 3,688.95 49834 02/02/24 Printed 3670 T-MOBILE Hotspot # 1 - Dec. Acct # 967822032 22,724.66 49835 02/02/24 Printed 3670 T-MOBILE Hotspot # 2 - Dec. Acct # 967822590 7,569.83 49836 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - September 61,756.53 49837 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - October 61,600.34 49838 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - November 61,996.32 49839 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - December 61,367.06 49840 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - January 62,826.37 49841 02/02/24 Printed 3577 U.S. BANK 1/8/2024 Community Engagement Acct # 1,591.52 4866 9145 5550 8537
49842 02/02/24 Printed 3577 U.S. BANK 1/8/2024 Fire Dept. Acct # 4866 9145 2,188.05 5550 8537
49843 02/02/24 Printed 3577 U.S. BANK 1/8/2024 Public Works Acct # 4866 9145 759.04 5550 8537
49844 02/02/24 Printed 3410 ULINE, INC. Cleaning Supplies - Kid Power 162.09 49845 02/02/24 Printed 3471 VERIZON WIRELESS Patrol Units-Cell Phones Acct # 304.08 742128049-00001
49846 02/02/24 Printed 99 VOSTI'S, INC. Rotors & Brake Pads 1,609.87 WEST VALLEY 52,452.25

CONSTRUCTION CO
49847 02/02/24 Printed 476 Replace Fire Hydrant Run Gabilan & 5th St, Gonzales
Total Checks: 76 Checks Total (excluding void checks): 1,120,920.73 Total Payments: 76 Bank Total (excluding void checks): 1,120,920.73 Total Payments: 76 Grand Total (excluding void checks): 1,120,920.73 Packet Pg. 13
Attachment: Warrants #49772-49850 (2922 : Approve City Accounts Payable Warrants #49772-49850) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 11:23 am
Date: 02/02/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
49848 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - Jan 2023 57,468.90 49849 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - March 2023 58,338.55 49850 02/02/24 Printed 27 TRI - CITIES DISPOSAL Trash Services - July 2022 57,616.80 Total Checks: 3 Checks Total (excluding void checks): 173,424.25 Total Payments: 3 Bank Total (excluding void checks): 173,424.25 Total Payments: 3 Grand Total (excluding void checks): 173,424.25 Packet Pg. 14
Attachment: Warrants #49772-49850 (2922 : Approve City Accounts Payable Warrants #49772-49850) January started off very busy for City staff. Not only are staff busy ensuring that the recent storms don’t cause havoc for the community, but we are also gearing up for major undertakings that will start this year, including the groundbreaking of the Dennis and Jancie Caprara Community Center Complex in April.

Our City Manager and Councilmembers Worthy and Silva attended the League of California Cities Mayors and Council Members Academy in Monterey on Wednesday the 24th– Friday the 26th.

The sessions they attended were very informative. They consisted of legislative updates, the role in policy and land use planning, and key City issues among others.

Gonzales Community Center Complex
• The work on the Community Center continues to move along. We are set to meet our timeline and will be hosting our Groundbreaking Ceremony on April 27th at 1:00pm at the site. We hope you will be able to join us. See the Save the Date flyer for more details. And don’t forget to scan the QR code to see the fly through video of the site. • Staff continue to work on the Capital Campaign to secure the rest of the funding needed for Phase 2. Currently, we have $6.6 million secured in pledges and contributions out of the $10 million dollar goal that was established.
• If you are interested in making a donation or for more information, please visit the Community Foundation’s website (www.cfmco.org) and type in Gonzales Community Center in the search box. Donations made through their website are secure and will come directly to our Community Center fund.

City of Gonzales
City Manager Report
January 2024
June 2023
Packet Pg. 15
Attachment: City Manager Report - January (2926 : City Manager's Report) AGENDA
ITEM
6 Economic Development and Revenue Generation
• City Staff have been busy working on grants to bring in funding. In January, we submitted two grants, and we are working to complete one more. We are hoping that some of them will be successful and will bring in much-needed revenue for our community. • The Council has directed staff to continue exploring the idea of a digital billboard for the community as it has the potential to produce revenue for the City.

Housing
• The 6
th Cycle Housing Element wraps up its public comment period on February 12th .
• The Visita Lucia Housing Environmental Impact Review (EIR) will be open for public comment in February and will close on March 19th.
• Staff, the Council, and our partners, continue to be engaged with the County and LAFCO regarding their policies.
• Economic Development staff are also currently reviewing Accessary Dwelling Unit plans and are about to finalize one.

Community Engagement
• City staff continues to partner with the Blue Zones Project, Olinga Learning, and others to bring a Community Garden to the community. The Community Garden is set to cover a piece of the empty lot next to the Skate Park and the Gonzales Pool. We are excited about the opportunities this can bring to the community and the partnerships that are supporting this project. We have received the donated planters and are beginning to plan a Community Planting Day. Stay tuned to hear more and to get involved as the project progresses.

Save the Date for the upcoming events:
• April 20th- Gonzales Car Show
• April 27th at 1:00pm - Dennis and Janice
Caprara Community Center Complex
Groundbreaking Ceremony
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Attachment: City Manager Report - January (2926 : City Manager's Report) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Community Development Activity Report

ECONOMIC DEVELOPMENT
Freeway Oriented Reader Board. Following staff’s update to the City Council, on February 5, 2024, staff prepared a draft revision to the City of Gonzales Sign Ordinance (Zoning Code Section 12.116) to enable Freeway Oriented Reader Board signs. Staff is working with the City Attorney to perfect the new code language and to confer on the City’s approach to CEQA environmental review. On a separate track, staff continues to engage with Legacy Signs who has shown interest in proposing such a sign on City property and extending a revenue opportunity to the community. On Tuesday, February 13, 2024, staff met Legacy Signs at a potential city-owned site for such a sign. A formal Conditional Use Permit and lease request is expected soon.

Monterey County Business Council. On Thursday,
February 22, 2024, City staff will be hosting the
South County Roundtable at the tasting room of the
Constellation Winery from 11:30 – 1:00 pm. A
recent agenda had the Roundtable addressing:

Financing Tools for Economic Development, Rural
Business Development Grants, Hospitality Industry
Marketing, Trails of Anza vs. South County
Roundtable, and a Hotel Feasibility Study. This
meeting will be a continuation of this dialogue and
collaboration.

Gloria Road Cooler Project. There has been no movement since the last report.

AGENDA
ITEM
7 Packet Pg. 17

HOUSING
Housing Element. On Monday, February 12, 2024, staff held a second workshop with the Planning Commission and concluded a 30-day public review period. Three commissioners (of 4) were in attendance, and no persons from the public were present or spoke by Zoom. Commissioners commented on how out-of-reach housing prices are for so many in the community and how complex and involved the Housing Element is; that it is hard to grasp. To date, staff has only received a single written response from LandWatch Monterey County.

Staff will now make final notes and revisions (if necessary) and forward the Housing Element to the State Department of Housing and Community Development. The State then has 90 days to review and return comments to the City, should additional issues need to be addressed or clarified. After receiving initial comments, the City can move to adopt and resubmit to HCD for another 60-day review. HCD then either finds the element in compliance or provides further comment followed by subsequent 60-day review(s) until certification.

From that point with a certified housing element, we will work to implement the Housing Element through zoning actions, program creations and other mechanisms.

ADUs. The City of Gonzales, in partnership with Design Path Studio, is providing property owners with a choice of four (4) pre-approved ADU plans to encourage the development of new detached ADUs within the city boundaries. The available plans encompass four (4) architectural styles: Craftsman, Mid-Century, Ranch, and Spanish, offering four (4) unit types: 1A - One Bed/One Bath (495 sf), 1B - One Bed/One Bath (553 sf), 2A - Two Bed/Two Bath (749 sf), 2B - Two Bed/One Bath (746 sf). The four architectural plan types are available over the counter at City Hall for a low administrative fee of $405, representing a significant savings for homeowners who may not have to hire an architect and/or civil engineer. Unique site plans will still need to be completed and submitted along with solar plans and fire sprinkler information, if required. Staff intends to update and activate the City’s website, bilingual handout materials and instructions for submittal.

Vista Lucia Specific Plan. A major milestone has been reached with this project; the VLSP Draft Environmental Impact Report was completed and is out for 45-day public review. A copy of the EIR is available on the City of Gonzales website (https://gonzalesca.gov/services/communityPacket Pg. 18 development/development-activity-projects) under the Vista Lucia Project section. Flash drives are also available with the several files. The Final EIR will need to be completed by addressing the comments received during public review, and the project and its many components then brought to the Planning Commission for recommendation and to City Council for action in the Spring of 2024.

CODE ENFORCEMENT
The City is actively meeting with property owners, inspecting potential violations and starting documentation to progress to remedies.

BUILDING DIVISION ACTIVITY
From January 1, 2024 to January 31, 2024 (31 reporting days), the City issued 9 permits from the Building Division for roof repair, fire sprinklers, a furnace replacement and electrical and plumbing work to abate code enforcement notifications. The estimated valuation of all improvements was $90,011.21.

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City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Carmen Gil, City Manager
SUBJECT: Community Engagement & Recreation Departments Activity Report Current Activities
Kid Power
• Kid Power had 27 kids sign up in January. Once the kids returned to school, we got right back into the swing of things. The kids were busy with a lot more homework this semester but that’s ok, our team is ready to help them! We will even give some kids one-on-one time if they need it. • For one of our fun Fridays, the kids made ice cream in a bag. Yes, we know it’s cold, but they had a blast. We also got creative and made several handmade games with the kids some of which included: table tennis made with paper plates, a box with a tape trap (kind of like operation) and we made soft snowballs, so the kids were able to have an indoor snowball fight (dodgeball). • At Kid Power we have been working hard on having the kids help us plan fun Fridays. They seem to be enjoying planning with us. We also made lots of winter crafts including a polar bear, and a AGENDA
ITEM
8 Packet Pg. 20
penguin. In addition to the crafts, we took the time to explain to the kids what hibernation means and the importance of it in wildlife.

City Sports League
• City of Gonzales youth Basketball League started this month. Skills assessment took place on January 11th and 12th. We have 161 registered participants. This season we were able to create 17 teams ranging from division PreK/TK up to 8th grade. Our PreK to 5th grade divisions are co-ed and our 6th- 8
th grade is all boys. We were not ablet to get enough participants this season to create an all-girls team for 6th- 8
th
girls. We have 16 head coaches and 6 assistant coaches. We have a couple coaches who are coaching multiple teams. We also have 5 high school students as referees. Each ref has basketball and referee experience. All have, or still play basketball for high school. The games started on Saturday January 20th and are scheduled until February 24th. Our 6th - 8
th
boys will continue to March 9th.
• City of Gonzales Mini T ball registration has begun. The league is for ages 2½ - 4. The league is set to begin in April and will run for 6 weeks.
• South County Girls softball league registration has also begun. The league will have 3 divisions.

The divisions will include U8 ages 5-7, 10U ages 8-10, and 14U ages 11-14. We are hoping to have at least one team per division this season. Our season runs from mid-March to May.

Gonzales Youth Council
• The Gonzales Youth Council held their regularly scheduled meeting on January 22nd. Some of their discussion items included their upcoming action project which includes Drug Prevention and Housing/Tenant Rights. Both project teams have been meeting outside of their scheduled meetings to make progress. The drug Prevention team is hoping to put their ideas to action in February while the Housing/Tenant Rights team is hoping to kickstart their project in March. • In addition to the action projects, the Gonzales Youth Council has been meeting with the Youth Council from Soledad and Greenfield in hopes of hosting a Youth Summit. The students met for the first time in December and have two upcoming meetings in February. One of their main priorities is finding a space to host the summit and putting together a schedule of events for the day.

Recreation/ Community Engagement
• The Recreation Department and Public Works Supervisor have been meeting local organizations and non-profits to build a timeline towards creating a Community Garden. Some of our partners thus far include: The Blue Zonez Project, Save the Whales, Wings of Knowledge, and the Resource Conservation District of Monterey County. As of now, we are expected to have 3 garden beds delivered in the next couple of weeks and our overall goal is that we can host a Community Garden Day in the spring. The garden will be in the empty lot next to the Gonzales Community Pool. We hope this space can be used to bring the community together and to allow residents to cultivate plants that they may not have the space to grow in their own homes.

Packet Pg. 21
• On January 26th, we welcomed Eliza Rodriguez, a CSUMB student that will be interning for the Recreation/ Community Engagement Department for the next 3 semesters as part of her Collaborative Health and Human Service Major requirements.

Activities in the Planning Phase
• Currently, the City of Gonzales is preparing to kick off Chair Yoga on Saturday February 3rd at the Vosti Center, a collaboration between the city and the Blue Zonez Project. The city has also been working with the County Health Department and Alliance on Aging to bring in more activities and programs geared towards our senior population. Right now, some of the potential programming includes waltz dancing, art, and cooking classes. • Our Gonzales Youth Council will be hosting their Drug Prevention week at Gonzales High School beginning on Tuesday February 20th - February 23rd. Some of the organizations that they will be working with include: the Gonzales Fire Department, The Epicenter, Friday Night Live, and Sun Street Center.
• The Recreation Department is also working on the logistics of our Car Show. It is scheduled to take place on April 20th. We will have more details about it in the upcoming weeks.

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City of Gonzales

FIRE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, City Manager
SUBJECT: Fire Department Activity Report

RESPONSES
There were 74 calls for service during the month of January, including 1 structure fire, 1 vehicle fire, 43 EMS calls, 8 service calls, 7 false alarms, and 14 calls for which we were dispatched and cancelled enroute. The Fire Department provided mutual aid to our neighbors twice and received mutual aid once due to multiple incidents occurring at once. There was one serious vehicle accident on North Alta Street that resulted in 3 injured patients.

DEPARTMENT OPERATIONS
There are no vacancies in our full-time positions. We have two active Volunteer Firefighters that continue to work shifts as time allows, we also have one Volunteer Firefighter applicant that is working through the Selection Process. All fire apparatuses are currently in service; however, pump repairs are needed on both type 1 engines and will be scheduled as time and budget allows. All staff continued with mandatory EMS training updates, as well as Incident Command scenarios.

GRANTS
Two grant applications were submitted during the month of January, the first was a grant through the California Department of Water Resources that if awarded will fund a mass emergency notification system (NIXEL) and provide funding for flood fight materials, the total amount requested was $13,500.

The second grant application submitted was to the California Office of Traffic Safety for the purchase of new vehicle extrication equipment, the amount requested was $48,000. Staff is currently working to prepare a grant application for the Assistance to Firefighters grant program, administered by FEMA. This grant, if awarded, would fund the purchase of a replacement Fire Engine.

AGENDA
ITEM
9 Packet Pg. 23

PREVENTION
There were two business inspections conducted during the month of January. Residential smoke detectors were installed in two residences through partnership with the Red Cross. The Fire Chief, Public Works Director, and Public Works Supervisor met to discuss emergency response plans focused on flooding concerns.

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City of Gonzales

POLICE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: January 2024 Activity Report
Crime and Arrests
The Gonzales Police Department investigated 12 Part I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of January 2024. During the same time last year, there were 10 Part I Crimes investigated.

During the month of January 2024, Officers made 10 arrests. During the same time last year, there were a total of 10 arrests.

Calls for Service
The Department responded to 557 calls for service in January 2024. There were 55 crimes, accident, and information reports taken during the month.

Animal Control
During the month of January 2024, the Animal Control Officer (ACO) provided the following services:

Animal
Control
Trapped/Stray Dead Injured Bite Cases Returned to
Owner
Transported
to the SPCA
Cats 2 4 2 0 1 0
Dogs 1 0 0 0 1 2
Total = 3 4 2 0 2 2
Significant Cases
AGENDA
ITEM
10 Packet Pg. 25
Although the Police Department responded to 557 calls for service during the month of January 2024, the most significant cases involved 12 Part I crimes. 0- Homicide 0 - Rape, 1 - Robbery, 3 - Assault, 2 - Burglary, 5 - Larcenies, and 1 -Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

Sergeant Bowen, Corporal Cordoba, Officer Rivera, and Officer Rivas all attended a 4-hour Perishable Skills Program on January 30, 2024 at the Coyote Valley Campus in San Jose. This course provides the trainee with the topics of Driver Training/Awareness required in the POST Perishable Skills Training Program.

Packet Pg. 26
City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Public Works/City Engineer Department Activity Report

BUILDINGS
Community Center Complex Project – WRNS (Project Architect) submitted 100% Construction Document plans for City review on 1/19/2024 (on schedule). City staff and the contract Building Official reviewed the submittal and provided comments to WRNS. Staff presented a progress report at the 2/05/2024 Council meeting. On 2/05/2024, the Design/Build team met with the GYC and provided updates on the Teen Center, Library, and Courtyard. On 2/07/2024, the Design Build team met with County Library staff on design updates. The project is on track for groundbreaking by the end of April 2024 and staff is planning a Groundbreaking Ceremony for 4/27/2024. UPDATE:

WRNS is preparing the 100% Construction Document submittal which is due to the city at the end of February for Building Code Review.

WASTEWATER

1. Industrial Wastewater (IW) System – Construction documents for the IW Conveyance and Treatment Facility were completed in September 2022. Staff, City surveyor and real estate appraiser are finalizing the temporary and permanent easements needed for the pipeline contract. City staff is coordinating with the State Water Resources Control Board regarding the City’s State Revolving Fund loan application (most recent virtual meeting was 12/15/2023). UPDATES: On 1/11/2024, SWRCB staff emailed city staff that the SRF Agreement is with their Contract Department, and it will take three to four months for them to email us the SRF Agreement.

2. Wastewater Treatment Plant Repairs – At the recommendation of staff, on 2/05/2024 the City Council authorized emergency work to repair the berms and improve the percolation at the disposal fields.

This was based on staff observing that the percolation of treated wastewater in the three disposal fields slowed over the last two weeks due to a higher water table because of the higher-than-normal AGENDA
ITEM
11 Packet Pg. 27
rain last year and this winter’s rainfall. Staff engaged a contractor to regrade the berms at the disposal fields that should restore the capacity of the disposal fields. Staff also had Rain 4 Rent to provide and install a temporary pipeline to pump treated wastewater from the disposal fields to the emergency overflow basin near the WWTP headworks.

WATER

1. Johnson Canyon Parallel Waterline – A design contract with Schaaf & Wheeler was approved at the 6/20/2023 Council meeting. The contract was executed, and a kick-off meeting was held on 6/29/2023. UPDATES: The 90% Design Submittal was received on 12/22/2023. Staff reviewed the submittal and provided Schaaf & Wheeler with our comments. We plan to issue the project for public bid by 2/28/2024.

2. Alpine Court Water/Sewer Service – At the 8/07/2023 meeting, the City Council approved submitting grant agreements with the State Water Resource Control Board (SWRCB) to fund construction of extending water and sewer service from Gonzales River Road to Alpine Camp. Staff submitted the grant application for construction for the project. In December 2023 SWRCB staff advised city staff that funding was not available for the project this fiscal year.

ROADS

1. Fifth Street Truck Ban – This project was issued for public bid on 7/17/2023 and one bid was received and opened on 8/17/2023. The submitted bid was double the $35,000 estimate by the designer, so the project will be rescoped and additional funding must be identified to install the signs.

2. Safe Routes to School Steering Committee – The community member Steering Committee led by TAMC staff continues to hold their monthly meetings.

3. Monterey Salinas Transit Circulator – Over the last two years, MST staff has coordinated with City staff to replace the Dial-a-Ride Service with a fixed route bus service in Gonzales. MST and City staff met on 10/09/2023 and drove the proposed route to observe the various stops and developed some adjustments to the bus route. On 1/03/2024 staff emailed our review comments on the 60% design submittal to MST staff. MST’s design consultant is working on the 90% design submittal.

PARKS

1. Meyer Park – Staff has coordinated numerous maintenance items over the last several months including fixing light fixtures, replacing uplifted sidewalk, pruning trees, and replacing the rubber mulch under the swings with wood fiber. We are working with MST on installing a bus shelter that the City and MST will split the cost for. UPDATES: On 1/24/2024, staff met with residents of the California Breeze Subdivision and discussed park maintenance and some improvements. They were made aware of the need to increase the Parks/Open Space Assessment to fund any improvements.

SOLID WASTE

1. Quarterly Tri-Cities Franchise Agreements Meetings – Staff from the Salinas Valley Solid Waste Authority, Tri-Cities Disposal & Recycling and the Cities of Gonzales, Soledad, and Greenfield meet on a quarterly basis to discuss the various waste collection programs (commercial accounts, food waste, organic waste), compliance with latest state regulations, public outreach and education, customer surveys, etc.

Packet Pg. 28

2. On 3/17/2023, the Salinas Valley Solid Waste Authority issued a Request for Proposals for Collection of Solid Waste, Recyclables and Organic Waste. The RFP includes compliance with the recent State mandates such as AB 341, AB 1826, and SB 1383. Three proposals were received by the 6/30/2023 deadline. Staff from the four Cities reviewed the proposals and ultimately decided to negotiate a fiveyear contract extension with Tri-Cities Disposal & Recycling

DEVELOPMENT PROJECTS

1. Vista Lucia Development (City’s Sphere of Influence - East of US 101) a. Psomas developed a capital program of improvements to convey sewage from the SOI to the City WWTP for treatment and provided the draft technical memo in Mid-November for staff’s review.

The Final Technical Memorandum was submitted in April 2022. b. Staff has drafted a Request for Proposals to engage a consultant to prepare the PSR-PDS documents for the North Alta/US 101 Interchange.
c. Staff is working with the contract Planner on items in the draft Development Agreement.

2. Rianda Cooler Development Project (Gloria Road) – This project received final approval at the 9/25/2023 LAFCO meeting. Next step is for the applicant to submit plans for building code review.

UPDATE: PG&E is not able to provide the power needed to operate the facility until December 2025 and staff has reached out to PG&E Government Affairs for their assistance and a meeting will be held by the end of this month.

OTHER PROJECTS

1. Computer Network Server Replacement – Alvarez Technology replaced the computer servers for City Hall, Fire Station, and the Police Department. This $130,000 effort began with an eight-month procurement phase and the physical work was performed over a six-month period. The city hall server was replaced on 11/01/2023 and the police station server was replaced on 12/01/2023.

UPDATE: On 2/08/2024, the old servers were taken offline, and this project is now complete.

2. South Salinas Valley Broadband Authority – On 7/05/2023, the City received the High-Level Design package funded by the $250,000 CPUC Local Agency Technical Assistance grant. In October 2023 Tilson Technology (network design consultant) began the Low-Level Design for installation of 40 miles of fiber optic cable in Gonzales. UPDATE: Staff is working with Tilson Technology on siting a fiber hut for the fiber optic cable and connectivity components at the city Corporation Yard.

3. GIS – City staff continues to work on a GIS mapping system by inputting field data for water, sewer and storm drainage systems. Our water and wastewater consultants are using GIS to develop capital improvement projects to serve the proposed development projects in the SOI. GIS Staff with AMBAG is supporting our efforts including coordinating with County GIS staff to obtain additional mapping layers. Staff recently purchased several iPads for use by Public Work field personnel.

UPDATE: Staff recently engaged a new GIS support consultant, and we are holding bi-weekly meetings.

4. FEMA Flood Map Updates – In 2021 and 2022, FEMA and their consultants remapped seven watersheds in the Gabilan Mountains in the vicinity of South Salinas, Chualar, Gonzales and Soledad to update the Flood Maps. FEMA did not revise the flood maps based on City review comments that included inaccuracy of their stream gauge calibrations and the new maps became effective 11/30/2023.

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5. Transportation Agency for Monterey County – Patrick Dobbins attends the monthly Technical Advisory Committee meetings and is the Chair of the Technical Advisory Committee for 2024.

PUBLIC WORKS OPERATIONS AND MAINTENANCE

WASTEWATER
Staff perform testing and daily inspections of the influent and effluent at the wastewater treatment plant.

The percolation ponds are not percolating as they should be. Groundwater has risen. Staff are having a hard time getting the disposal fields to dry out in order to rip them with the tractor. With the heavy rain in January, staff are looking at ways to maintain the treatment capacity at the WWTP. Staff contracted with Swift Tectonics to regraded and raise the levees in the disposal fields.

Swift Tectonics raising levee between
disposal fields A & B
Crew clearing vegetation at the treatment plant.

WATER
Staff continue to perform testing and maintenance on the water system. Staff are still mapping the water and sewer system for GIS.

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STORM WATER
Staff have been clearing debris after each storm. Staff have been able to maintain the streets and stormwater system and keep flooding from happening in the hot spot areas in town.

Ditch along Fanoe Road, cleared before the storms.

PARKS
• Staff mow turf areas in City parks on a bi-weekly basis during storm season. Staff cleans restrooms, cleans trash, and makes repairs in parks regularly.
• The Skate Park has some needed repairs. The installation company will be out at the end of February to repair it.

CANYON CREEK & MEYER PARKS
Staff continue to clean the restrooms and grounds at Meyer Park.

GOVERNMENT BUILDING
Staff continue to maintain all City owned buildings.

COMMUNITY POOL
The pool heater has been ordered and the contractor has been onsite to ensure that when the heater arrives the installation will go well. Staff is ordering new sand filter media and will change it before the upcoming season.

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Sand Filters at the pool mechanical room

STREETS
Staff fill potholes when necessary. With a bit of dry weather, staff will begin filling them.

EVENTS
Staff work on special events that come up and preps Central Park when needed.

TRAINING
Staff did not participate in any training this month.

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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Agreement with Atlas Organics for Compost Procurement (SB 1383)

RECOMMENDATION
It is recommended that the City Council authorize execution of an Agreement between the City of Gonzales and Atlas Organics to procure Organic Materials to the City in compliance with SB 1383.

BACKGROUND
To support the development of organic material recovery and processing facilities throughout the State, a provision in SB 1383 requires that each city procure organic material proportionate to its population. To ensure compliance each jurisdiction must provide the California Department of Resources Recycling and Recovery (CalRecycle) with a signed Direct Service Provider Agreement with an organic processor for the purchase of these mandated materials or for the associated credits.

In 2022, the State passed AB 1985 which allowed cities three-years to phase-in organic procurement compliance (30% in 2023, 65% in 2024, and 100% in 2025). In 2024, the City is responsible for achieving 65% of its procurement allocation, representing 441 tons of mulch or 256 tons of compost.

The City, through Salinas Valley Solid Waste Authority (SVSWA), secured an SB 1383 Implementation Support grant that covers the associated costs for compliance with the 65% threshold for 2024. This grant covers the cost of procuring organic material through 2025.

REVIEW & ANALYSIS
SVSWA staff worked with Atlas Organics (the organics processor at Johnson Canyon Landfill) to secure reduced pricing for its member agencies at a rate of $8 per cubic yard of mulch, or $12.50 per cubic yard of compost.

AGENDA
ITEM
12 Packet Pg. 33
2024 Procurement Target of 65%
SCSWA Member Agency Procurement Target 65% Totals
Mulch (Tons) Compost (Tons)
Salinas 8330.4 4831.45
Soledad 1271.4 737.1
King City 778.7 451.75
Gonzales 441.35 256.1
Greenfield 956.8 555.1
County (SVR area) 1776.45 1030.25
Therefore, staff recommends execution of an agreement with Atlas Organics to provide Organic Materials to the City in compliance with SB 1383
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: Compliance with SB 1383 and its associated organic material procurement target supports the reduction of greenhouse gas emissions.

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

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

ALTERNATIVES
Direct staff to seek additional proposals for this service.

Packet Pg. 34

BUDGET IMPACT
None at this time due to the grant funding available for 2024 and 2025. Staff will budget funds for procurement of mulch and/or compost in the FY 2025-2026 Budget.

CONCLUSIONS
It is recommended that the City Council authorize execution of an Agreement between the City of Gonzales and Atlas Organics to procure Organic Materials to the City in compliance with SB 1383.

Attachments:

1. Agreement with Atlas Organics
Packet Pg. 35

Page 1 of 5 ends

ORGANIC MATERIALS DIRECT SERVICE PROVIDER AGREEMENT

BETWEEN THE CITY OF GONZALES, A MEMBER AGENCY OF THE SALINAS

VALLEY SOLID WASTE AUTHORITY, AND ATLAS ORGANICS
THIS AGREEMENT FOR SERVICES (herein “Agreement”) is made and entered into this 20th day of February 2024 (“Effective Date”) by and between the City of Gonzales, a member of the Salinas Valley Solid Waste Authority (“Member Agency”) and Atlas Organics CU11, LLC, a Generate Upcycle Company (Processor). The Processor and Member Agency may be collectively referred to as the “Parties” and individually as a “Party.”
NOW, THEREFORE, the parties hereto agree as follows:

1. Purpose of Agreement: This Agreement sets forth the terms and conditions pursuant to which the Parties will cooperate to incentivize residents and solid waste rate payers of the Member Agency (Public Purchasers) to acquire recovered organic waste product in the form of finished compost (“Compost”) or mulch (“Mulch”) from Processor on behalf of the Member Agency to assist them in complying with the requirements of the California Code of Regulations (CCR), title 14, sections 18993.1 through 18993.4 (“SB 1383 Regulations”).

2. Term: The term of this Agreement shall commence on the Effective Date and remain in effect until December 31, 2024. The term of this Agreement may be extended by mutual agreement of the parties for three optional, one year extensions.

3. Services: Processor shall provide to Public Purchasers a discount which is equal to current Member Agency Product Pricing (per cubic yard) for the purchase of Compost and/or Mulch, as applicable, as set forth in Exhibit A. Processor shall provide the Member Agency, or their designated representative, monthly reports evidencing procurement of and payment for the Compost or Mulch for the Public Purchaser for annual reporting purposes. The reports shall include date of purchase, the name of each individual, entity, operation, or facility from whom the Compost was procured, and the amount in tons or cubic yards purchased, and type of Compost and/or Mulch purchased. Processor will charge by the cubic yard. For budgeting purposes, the Member Agency can use a conversion factor of 1.4 cubic yards of compost for 1 ton of compost and 4 cubic yards of mulch for 1 ton of mulch. Compost or Mulch purchased as a part of this agreement shall not exceed combined annual jurisdiction procurement targets for the respective Member Agency, as set forth by CalRecycle and listed in Exhibit B.

4. Payment: Processor will submit monthly invoices to the Member Agency for reimbursement at the specified per cubic yard rate based on the current pricing listed in Exhibit A. All invoices shall be payable net forty-five (45) days of receipt.

5. Warranties: Processor warrants and covenants that all Compost or Mulch at the Packet Pg. 36
Attachment: Agreement with Atlas Organics (2913 : Agreement with Atlas Organics for Compost Procurement (SB 1383))

Page 2 of 5 ends

time of delivery conforms with the specifications in this Agreement, SB 1383 Regulations, particularly 14 CCR §§ 18993.1-18993.4, and complies with all federal, state, and local laws, regulations, and ordinances applicable to the manufacture, production and sale of Compost or Mulch.

6. Indemnity: Each Party (the “Indemnifying Party”) agrees to indemnify and hold the other party, including the parties’ parents, affiliates, and subsidiaries and each of their officers, employees, and agents (collectively, the “Indemnified Party”), harmless from and against all loss or damage, including reasonable attorneys’ fees, costs and expenses incurred by the Indemnified Party as a result of any claims related to or arising out of the Indemnifying Party’s performance of its duties hereunder, unless such loss or damage shall arise from the negligence or the intentional acts of the Indemnified Party. In the foregoing sentence, the words “loss or damage” include, but are not limited to, loss or damage arising directly or indirectly from any actions or omissions of any employee or authorized representative of either party.

7. Limitation of Liability. Notwithstanding anything to the contrary, except in the case of fraud, under no circumstances shall either party be liable to the other party, its parents, affiliates and subsidiaries and each of their officers, managers, employees, contractors, or agents for any loss of profits, or any special, consequential or incidental damages, however caused, known or unknown, anticipated or unanticipated, even if advised of the possibility of such damage. The parties acknowledge that these limitations on potential damages were an essential element in setting consideration under this agreement.

8. Governing Law, Venue: This Agreement shall be deemed to have been made in the County of Monterey, California. This Agreement shall be governed by and construed in accordance with the laws of the State of California. The Parties agree that any action or proceeding to enforce or relating to this Agreement shall be brought exclusively in the federal or state courts located in Monterey County, California, and the Parties hereto consent to the exercise of personal jurisdiction over them by any such courts for purposes of any such action or proceeding.

9. Independent Purchaser: A Public Purchaser shall act as an independent Purchaser in the performance of this Agreement and in no respect shall a Public Purchaser be considered an agent or employee of the Member Agency. No provisions of this Agreement shall be intended to create a partnership or joint venture between a Public Purchaser, Processor, or the Member Agency and no Party shall have the power to bind or obligate the other Parties, except as expressly set forth in this Agreement.

10. Entire Agreement: This Agreement contains the entire agreement between the Parties with respect to the subject matter of this Agreement and any agreement or representation with respect to the same or the obligations of any other Party with respect to the same which is not expressly provided in this Agreement or in a written document which is signed by the Party to be charged, shall be null and void.

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Attachment: Agreement with Atlas Organics (2913 : Agreement with Atlas Organics for Compost Procurement (SB 1383))

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IN WITNESS WHEREOF, the Parties have hereunto set their hands on the first day date above written.

City of Gonzales
By:

Carmen Gil, City Manager
Date: ___________________________
Processor
Atlas Organics CU11, LLC,
Generate Upcycle Company
By:

Date: ____________________________
Packet Pg. 38
Attachment: Agreement with Atlas Organics (2913 : Agreement with Atlas Organics for Compost Procurement (SB 1383)) Page
4 of 5
Exhibit A
Member Agency Product Pricing • Mulch: $8.00 per cubic yard • Compost: $12.50 per cubic yard Packet Pg. 39
Attachment: Agreement with Atlas Organics (2913 : Agreement with Atlas Organics for Compost Procurement (SB 1383)) Page
5 of 5
Exhibit B
Member Agency SB 1383 100% Procurement Targets
Total Organic
Waste Mulch Compost
Salinas 160,206 12,816 12,816 7,433
Soledad 24,454 1,956 1,956 1,134
King City 14,977 1,198 1,198 695
Gonzales 8,490 679 679 394
Greenfield 18,402 1,472 1,472 854
Unincorp County^ 34,158 2,733 2,733 1,585
TOTALS: 20,854 12,095
Population*
SVR Member
Agency
Procurement Targets*
(Tons) Conversion Factors:
1 ton of organic waste = 0.58 ton of compost
1 ton of organic waste = 1 ton of mulch
Packet Pg. 40
Attachment: Agreement with Atlas Organics (2913 : Agreement with Atlas Organics for Compost Procurement (SB 1383)) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
Staff recommends that the City Council Authorize the purchase of a John Deere Skid Steer with implements from RDO Equipment Company for $85,283 and approve the surplus sale of the existing John Deere Tractor.

BACKGROUND
The City’s existing John Deere tractor is a 1980 model and is the oldest vehicle in the City fleet. It is primarily used at the Wastewater Treatment Plant to maintain the pond levees and other maintenance work. The California Air Resources Board (CARB) rates the City’s 40-year-old tractor as a Tier 0 vehicle (self-propelled off-road diesel vehicle). In November 2022, CARB began requiring cities to replace Tier 0, 1 and 2 vehicles with Tier 3 or 4 vehicles.

The City’s tractor needs extensive repairs to the hydraulic system, is unsafe due to its age, and must be replaced due to CARB exhaust emission requirements.

REVIEW & ANALYSIS
CARB approved amendments to the In-Use-Off-Road Diesel-fueled Fleets Regulation on November 17, 2022, requiring further reduction of emissions. Recent clarifications required retirement of vehicles that are Tier 0, 1, and 2 and require cities to only purchase Tier 3 and 4 vehicles.

RDO Equipment Company and the City of Gonzales are members of Sourcewell, which is a cooperative sourcing solution for public agencies that provides expedited quotes, significant discounts, and free shipping on products. Attached are the following quotes:

AGENDA
ITEM
13 Packet Pg. 41
Description Vendor Retail Cost Sourcewell Cost
1 2023 John Deere Tractor
(Model 317G) RDO Equipment $75,910 $64,740
2 Implements (rotary cutter,
dozer blade, and auger) RDO Equipment $23,648 $20,543
Total = $99,558 $85,283
Therefore, the retail cost for a new John Deere Model 317G Tractor with selected implements is $99,558 and the cost through the Sourcewell purchasing program is $85,283. Funding for this purchase will be from the Sewer Enterprise Fund - Capital Outlay (GL530-000-6540) and sufficient funds are available.

Therefore, staff recommends that the City Council authorize the purchase of a John Deere Skid Steer and implements from RDO Equipment Company in the amount of $85,283 and approve the surplus sale of the existing John Deere tractor.

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: This purchase will improve safety and efficiency and allow more reliable service 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. 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
Explain: See Vision above.

Packet Pg. 42

ALTERNATIVES
Direct staff to not purchase this tractor. This is not recommended due to the need to replace Tier 0 offroad vehicles.

BUDGET IMPACT
Funding for this purchase will come from the Sewer Enterprise Fund - Capital Outlay (GL530-000-6540), and sufficient funds are available.

CONCLUSION
Staff recommends that the City Council Authorize the purchase of a John Deere Skid Steer with implements from RDO Equipment Company for $85,283 and approve the surplus sale of the existing John Deere Tractor.

Attachments:

1. RDO Quotes for Tractor and Implements
Packet Pg. 43
Packet Pg. 44
Attachment: RDO Quotes for Tractor and Implements (2910 : Purchase of John Deer Skid Steer for the WWTP) Packet Pg. 45
Attachment: RDO Quotes for Tractor and Implements (2910 : Purchase of John Deer Skid Steer for the WWTP) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

RECOMMENDATION
It is recommended that the City Council Authorize Execution of a Non-Exclusive Master Services Agreement between the City of Gonzales and NV5 Consultants, and Approve Execution of Task #1 for Grant Management and Electric Vehicle Charging Station Design Services for a not-to-exceed fee of $205,000.

BACKGROUND
In January 2023, the City received a $1,054,480 grant for the design and installation of 18 Electric Vehicle Charging Stations from the California Energy Commission. The EV Charging Stations will be installed at:

Site Number of
Charger Station
1 Community Center Complex
(650 Fifth Street, Gonzales) Six
2 Salinas Valley Health clinic
(850 Fifth Street, Gonzales) Six
3 On street parking in front of Farmers Market
(246 Alta Street, Gonzales) Six
AGENDA
ITEM
14 Packet Pg. 46
The city will use a consultant for the following efforts:
• Prepare Design documents for city approval and public bidding. This includes submitting design documents for city review at the 30% and 90% milestones. • Develop and update list of expected Permits
• Utility Company Coordination
• Grant Management including monthly progress meetings with CEC staff and quarterly reports • Seek other grant funding to cover the required 25% CEC Grant match • Bid Phase Support
o Prepare responses to bidders questions
o Review submitted bids to determine lowest responsive and responsible bid • Construction Management and Inspection
• Contract Close-out including compliance with the requirements outlined in Energy Commission grant agreement
On January 12, 2024, staff issued a Request for Proposals (RFP) to seven firms on the city’s engineering consultant list. NV5 was the only firm to submit a proposal by the February 1, 2024 deadline. Staff reviewed NV5’s proposal and found it responsive to the city’s RFP and NV5 has qualified staff and related project experience to provide the services needed to deliver this important project.

REVIEW & ANALYSIS
As stated in the city’s RFP, NV5’s services will be provided on a Task Order basis under a Master Services agreement. The expected Task Orders are:
• Task Order #1 – Grant Administration and EV Charging Station design • Task Order #2 – Bid Phase support
• Task Order #3 – Construction Management/Inspection, Commissioning and Project Close-out Staff recommends the Council authorize execution of a Master Services Agreement with NV5 related to the $1,054,480 grant from the California Energy Commission for installation of 18 Electric Vehicle Charging Stations and approve execution of Task #1 for Grant Managements and EV Design Services for a not-to-exceed fee of $205,000.

Explain: Installing the first publicly available EV Charging Stations in Gonzales supports the Gonzales Grows Green initiative.

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
Packet Pg. 47
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 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
Direct staff to seek additional proposals for this work. This is not recommended due to the specialized nature of the design services.

BUDGET IMPACT
This contract will be funded with a combination of monies from the Energy Commission grant, Community Center Complex funds, and grant funds from the Central Coast Community Energy.

CONCLUSION
It is recommended that the City Council Authorize Execution of a Non-Exclusive Master Services Agreement between the City of Gonzales and NV5 Consultants, and Approve Execution of Task #1 for Grant Management and Electric Vehicle Charging Station Design Services for a not-to-exceed fee of $205,000.

Attachments:

1. Master Services Agreement with Task Order #1
Packet Pg. 48
Packet Pg. 49
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 50
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 51
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 52
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 53
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 54
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 55
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 56
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 57
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 58
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 59
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 60
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 61
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 62
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 63
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 64
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 65
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 66
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 67
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 68
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 69
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 70
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) Packet Pg. 71
Attachment: Master Services Agreement with Task Order #1 (2919 : Agreement with NV5 for EV Charging Station Design Services) City of Gonzales

CITY ATTORNEY

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Michael Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-05 Ratifying a Proclamation of the Existence of a Local Emergency Due to Winter Storms/Atmospheric River

RECOMMENDATION
It is recommended that the City Council consider and adopt Resolution No. 2024-05, A Resolution of the City Council of the City of Gonzales Ratifying a Proclamation of the Existence of a Local Emergency Due to Winter Storms/Atmospheric River.

BACKGROUND
The California Emergency Services Act (California Government Code sections 8639, 8550, et seq.) defines a local emergency as the existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a city, caused by conditions which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of a city, and that require the combined forces of other political subdivisions to combat.

Beginning on February 3, 2024, severe winter storms related to a series of atmospheric river systems struck California, bringing high winds, substantial precipitation, and river and urban flooding. It is anticipated that additional storms related to atmospheric river systems will continue to threaten California in the coming weeks, bringing heavy rainfall, flooding, strong winds and wind gusts, falling debris, downed trees, and power outages. These storms continue to threaten critical infrastructure, movement of resources, pose a risk of potential power outages to households and businesses, and have caused and continue to threaten river and urban flooding due to excessive and prolonged rainfall.

As a result of these weather conditions, on February 4, 2024, Monterey County Administrative Officer Sonia M. De La Rosa issued a Proclamation of Local Emergency in Monterey County due to the impacts associated with the atmospheric event that commenced on February 3, 2023. Among other adverse AGENDA
ITEM
15 Packet Pg. 72
weather impacts, the Proclamation references heavy rainfall, strong winds and mudslides that threaten residents, property, critical infrastructure and transportations systems, and peril to the safety of persons and property due to flooding in and around the Salinas River. The Proclamation goes on to say that the referenced conditions have the potential to create circumstances that are beyond the control of local personnel and related equipment and facilities, thus requiring the assistance of combined forces from other political subdivisions within the State to meet local and regional needs.

Locally, on February 5, 2024, the Gonzales City Council was compelled to adopt a resolution declaring an emergency authorizing the City to dispense with normal contracting procedures and to immediately commence repairs and work in an amount not to exceed $250,000 in order to address potential percolation problems in the disposal fields at the City’s Wastewater Treatment Plant. These problems, which have been exacerbated by storm conditions and rainfall, have the potential to lead to overtopping and uncontrolled discharge of treated wastewater if left unattended. In addition to this threat, the City incurred significant expenses for many hours of overtime expended to monitor Wastewater Treatment Plant conditions and to properly prepare for potential storm related harms at the Plant and elsewhere throughout the City. Additional storms, forecast to commence on or around February 14, 2024, are anticipated to bring similar adverse weather conditions and attendant dangers and operational threats.

Under the circumstances described above, City Manager Carmen Gil, in her position as the City’s Director of Emergency Services (as authorized per Gonzales City Code Section 2.08.040) issued a “Proclamation of Existence of Local Emergency” on February 14, 2024, stating that conditions of potential extreme peril to the safety of persons and property have arisen in Gonzales caused by winter storms. Such action was recommended for all cities in Monterey County by Supervisor Chris Lopez at a briefing on February 12, 2024. It is clear that the health, safety and welfare of the City of Gonzales’ residents, businesses, visitors, and staff has been endangered by the winter storms and the atmospheric river, and that additional future measures may be needed to protect the community. Among other matters, the Proclamation will help facilitate coordination of local, state and federal resources to address storm impacts and damages and may enable the City to seek reimbursement for the cost of efforts to prevent and deal with such impacts.

REVIEW AND ANALYSIS
Per Government Code Section 8630 and Gonzales City Code Section 2.08.040, the City’s Proclamation of Existence of Local Emergency must be ratified by the City Council within seven days of issuance in order to remain in full force and effect. Based on the matters set forth above, City Manager Gil is recommending that the City Council ratify the Proclamation by adoption of the offered resolution.

Ratification of the Proclamation will confirm the factual basis for the declaration of emergency, and indicate that in light of the fact that local resources have the potential to be overwhelmed by winter storm/atmospheric river impacts, declaration of a Local Emergency is necessary in order to allow the City to work with other local governmental entities to plan, prepare and engage resources necessary to respond to the threat posed by local weather conditions, to coordinate control efforts required by federal, state and local entities, and to qualify for federal and state relief as may be available to reimburse the City for expenses it incurs in addressing this emergency. This proclamation places the City in the best position to have maximum access to resources and funds while emergency storm conditions continue.

Per Government Code Section 8630, the Council will be required to review the need for the continuing local emergency at least once every sixty (60) days until the Council terminates the local emergency.

BUDGET IMPACT
None. However, the Proclamation may allow the City to be eligible to receive state and federal funding for expenses incurred responding to and recovering from winter storms.

Packet Pg. 73

CALIFORNIA ENVIRONMENTAL QUALITY ACT
The work contemplated in the City’s Proclamation and Resolution ratifying the same are exempt from analysis under the California Environmental Quality Act per CEQA Guidelines Section 15269- Emergency Projects.

ALTERNATIVES
Do not adopt Resolution No. 2024-05. This action is not recommended as it will not assist the City in preparing and covering costs associated with responding to winter storm impacts.

CONCLUSION
It is recommended that the City Council consider and adopt Resolution No. 2024-05, A Resolution of the City Council of the City of Gonzales Ratifying a Proclamation of the Existence of a Local Emergency Due to Winter Storms/Atmospheric River.

Attachments:

1. County's Proclamation - Exhibit A

2. City's Proclamation - Exhibit B
Packet Pg. 74

PROCLAMATION OF A LOCAL EMERGENCY

BY COUNTY ADMINISTRATIVE OFFICER
In the Matter of Proclaiming the Existence
of a Local Emergency within Monterey County
)
)
WHEREAS, the California Emergency Services Act (Government Code section 8630, et seq.) establishes procedures for proclaiming emergencies and for responding promptly to the needs that arise during emergencies; and
WHEREAS, Monterey County Code section 2.68.060 and Government Code section 8630(c) empower the County Administrative Officer or her designee to proclaim the existence of a local emergency when the County is affected by or likely to be affected by a public calamity, if the Board of Supervisors is not in session; and
WHEREAS, an Atmospheric River event commencing on February 3, 2024 and continuing into February 4, 2024 has resulted in heavy rainfall, extremely strong winds, mudslides, and coastal flood and high surf hazards causing damage to public infrastructure and private property within Monterey County; and WHEREAS, the County Administrative Officer of the County of Monterey and ex officio County Administrator of the Monterey County Water Resources Agency, did proclaim the existence of a local emergency within the Monterey County Operational Area on February 4, 2024 and does hereby find as follows:

Heavy rainfall, extremely strong winds, mudslides, and coastal flood and high surf hazards threaten residents, property, critical infrastructure, and transportation systems in the County of Monterey, including but not limited to:
o Loss of safe ingress and egress; and
o Inundation of agricultural fields; and
o Erosion and excessive transport of sediment; and
Conditions of extreme peril to the safety of person and property arose within the area of the Carmel Lagoon and Carmel River in Monterey County caused by tidal action, river flow and flooding commencing on or about February 3, 2024; and
o County Public Works crews have prepared for this event by taking protective measures; and o Water has risen to a level that threatens the flooding of homes and residences in low lying areas near the Carmel Lagoon and Carmel River; and
o Flooding and coastal hazards may inundate potable water delivery systems, sewer collection systems, and other utility systems in the area; and
o Conditions of peril exist to the safety and wellbeing of the residents living around the Lagoon as well as the Carmel River other nearby areas. Immediate action is necessary to address these public health and safety issues; and
Conditions of extreme peril to the safety of person and property arose within the area of Bolsa Knolls caused by creek flow and flooding commencing on or about February 3, 2024; and o County Public Works crews have prepared for this event by taking protective measures; and o Water has risen to a level that threatens the flooding of homes and residences in low lying areas near in Bolsa Knolls; and
Conditions of extreme peril to the safety of person and property arose within the areas of Arroyo Seco and Laureles Grade due to mudslides commencing on or about February 3, 2024; Conditions of extreme peril to the safety of person and property arose within the area of the Salinas River Lagoon and the Salinas River in Monterey County caused by tidal action, river flow and flooding commencing on or about February 3, 2024;
The foregoing conditions are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the County of Monterey and the Monterey County Water Resources Agency and require the combined forces of other political subdivisions to combat; and

EXHIBIT A
Packet Pg. 75
Attachment: County's Proclamation - Exhibit A (2924 : Resolution No. 2024-05 Ratifying Proclamation of Local Emergency Due to Winter That this emergency does not permit a delay resulting from a competitive solicitation to let contracts for bids, and immediate action is necessary to respond to the emergency, and WHEREAS, the Board of Supervisors is not in session as of the date of this proclamation; and WHEREAS, the aforesaid conditions of extreme peril warrant and necessitate the proclamation of the existence of a local emergency and immediate action is necessary to mitigate public calamity and the other effects of local emergency.

NOW, THEREFORE, IT IS PROCLAIMED, as defined in Government Code section 8558(c) and Public Contract Code section 1102 that a local emergency now exists throughout said County:

That during the existence of said local emergency the powers, functions, and duties of the County Administrative Officer and the Emergency Organization of this County shall be those prescribed by State law and the ordinances, resolutions, and approved plans of the County of Monterey in order to mitigate the effects of said local emergency; and
During the existence of said local emergency the powers, functions, and duties of the County Administrative Officer or designee, the Department of Public Works, Facilities, and Parks, Department of Housing and Community Development, and the Emergency Organization of the County of Monterey shall be those prescribed by State law and the ordinances, resolutions, and approved plans of the County of Monterey in order to mitigate the effects of the local emergency; and Pursuant to Public Contract Code sections 20134, 20395, and 22050, the Public Works Director and the General Manager of the Water Resources Agency or their designees are hereby authorized to engage independent contractors to complete all necessary work to mitigate the effects of said local emergency.

Contracts for this work may be executed without prior Board approval of the plans, specifications, and working details, without giving notice for bids to let contracts.

SIGNED AND SUBSCRIBED at Salinas, California this 4th day of February 2024.

Sonia M. De La Rosa
County Administrative Officer
County of Monterey
.

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Attachment: County's Proclamation - Exhibit A (2924 : Resolution No. 2024-05 Ratifying Proclamation of Local Emergency Due to Winter

CITY OF GONZALES

PROCLAMATION OF EXISTENCE OF LOCAL EMERGENCY
WHEREAS, the California Emergency Services Act (California Government Code sections 8639, 8550, et seq.) defines a local emergency as the existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a city which are or are likely to be beyond the control- of the services, personnel, equipment, and facilities of a city, and require the combined forces of other political subdivisions to combat; and
WHEREAS, Government Code Section 8630 empowers the City Council to designate by ordinance a local official with the power to proclaim a local emergency as defined by the California Emergency Services Act when the City Council is not in session; and WHEREAS, Chapter 2.08- Emergency Services Organization of the Gonzales City Code ("GCC'') establishes a broad set of powers and responsibilities associated with disasters, and provides that the City Manager is designated as the City's "director of emergency services'' with the powers and duties set forth in GCC Section 2.08.040, including but not limited to the authority to issue a proclamation of a threatened disaster or local emergency if the City Council is not in session; and WHEREAS, on February 4, 2024, Monterey County Administrative Officer Sonia M. De La Rosa issued a Proclamation of Local Emergency in Monterey County due to impacts associated with an atmospheric event commencing on February 3, 2024, that resulted in heavy rainfall, extremely strong winds, mudslides and coastal flood and high surf hazards causing damage to public infrastructure and private property within Monterey County; and
WHEREAS, the County and City have been alerted to another storm event that is expected to bring similar conditions to the County commencing on February 14, 2024; and WHEREAS, on February 5, 2024, the Gonzales City Council was compelled to adopt a resolution declaring an emergency authorizing the City to dispense with normal contracting procedures and to immediately commence repairs and work in an amount not to exceed $250,000 in order to address potential percolation problems in the disposal fields at the City's Wastewater Treatment Plant, exacerbated by storm conditions, that if left unattended could lead to overtopping and uncontrolled discharge of treated wastewater; and WHEREAS, as noted above, the City has already incurred significant expenses as a result of the February 4 atmospheric storm, as well as many hours of overtime expended to monitor Wastewater Treatment Plant conditions and properly prepare for potential stormrelated harms at the Plant and elsewhere in the City; and WHEREAS, the health, safety and welfare of the City of Gonzales' residents, businesses, visitors, and staff is of the utmost importance to the City, and additional future measures may be needed to protect the community; and

EXHIBIT B
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Attachment: City's Proclamation - Exhibit B (2924 : Resolution No. 2024-05 Ratifying Proclamation of Local Emergency Due to Winter Storms) WHEREAS, the City Manager of the City of Gonzales, acting as the City's Director of Emergency Services, does hereby find:

1. Conditions of potential extreme peril to the safety of persons and property have arisen within the City of Gonzales caused by winter storms commencing on or about the 3rd day of February 2024, and expected to continue through the week of February 12 and potentially beyond. These conditions include heavy rainfall and strong winds that threaten safe ingress and egress to homes and facilities, erosion and excessive transportation of sediment, flooding, perils to persons, private and city property, and city facilities in close proximity to the Salinas River, and operations failures at the City's Wastewater Treatment Plant.

2. That the City Council of the City of Gonzales is not in session and cannot immediately be called into session;

3. As contemplated in the California Emergency Services Act contained in Government Code Section 8550 et seq., including Section 8558(c), a local emergency exists because of the existence of conditions of disaster or of extreme peril to the safety of persons and property within the City of Gonzales caused by the aforesaid conditions, and the proclamation of a Local Emergency is necessary to enable the City and other local governmental entities to adequately plan, prepare and engage resources to be able to effectively respond to the threat posed by the afore-referenced winter storms/atmospheric river.

NOW, THEREFORE, IT IS HEREBY PROCLAIMED that a local emergency is hereby declared on February 14, 2024, within the City of Gonzales. During the local emergency, the powers and duties of the City Manager and of the City Council shall be defined in state and federal law, and the ordinances, resolutions and approved plans of the City of Gonzales in order to mitigate the effects of said local emergency.

BE IT FURTHER PROCLAIMED AND ORDERED that this proclamation shall be transmitted to the City Council within seven (7) days of enactment for ratification, and this local emergency shall continue until terminated by further declaration of the undersigned or by resolution of the City Council.

SIGNED AND SUBSCRIBED on this 14th day of February 2024, at 4:55 p.m.

By:

Carmen Gil
Gonzales Director of Emergency Services

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Attachment: City's Proclamation - Exhibit B (2924 : Resolution No. 2024-05 Ratifying Proclamation of Local Emergency Due to Winter Storms) AGENDA
ITEM
16 Packet Pg. 79
Attachment: Letters of Interest for PC (2923 : Consider Appointment to the Planning Commission) Packet Pg. 80
Attachment: Letters of Interest for PC (2923 : Consider Appointment to the Planning Commission) Packet Pg. 81
Attachment: Letters of Interest for PC (2923 : Consider Appointment to the Planning Commission) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Update on the Wastewater Treatment Plant Emergency Repairs

RECOMMENDATION
It is recommended that the City Council receive this progress report on the Emergency Repairs at the City’s Wastewater Treatment Plant.

BACKGROUND

The WWTP has been located on City-owned parcels just east of the Salinas River since the 1950’s. It’s been expanded periodically over the years with the current configuration constructed in 1982. The Salinas River flooded the WWTP during the 1995 floods, and one of the disposal fields was flooded in April 2011. Both times, the City repaired the storm damage.

The City’s Wastewater Treatment Plant (WWTP) is comprised of the following elements:
• Headworks where wastewater enters the facility via a 21-inch sewer main that conveys the wastewater from Gonzales residents, businesses, and industrial facilities. The sewage passes through a bar screen to catch items that are larger than one inch. • A Lift Station that pumps the sewage from the headworks to the ponds to begin the treatment process.
• Eight ponds separated into two trains where wastewater is treated through the introduction of air and detention time. Typically, wastewater moves through four ponds over a 60-day period before it’s released to percolate in the disposal fields.

AGENDA
ITEM
18 Packet Pg. 82
• Treated wastewater from Ponds 7 and 8 is then discharged into three separate disposal fields to percolate into the ground. The disposal fields are designated A, B and C and each have an area of seven acres. Public Works staff rotates which field the treated wastewater is drained into. The disposal fields are drained and regularly disced using a tractor with long ripper teeth to break any crust that might slow percolation.

In mid-January, City Public Works staff observed that the percolation of treated wastewater in the three disposal fields had slowed. The on-site groundwater monitoring wells indicate a higher water table because of last winter and this winter’s rainfall. The heavy rainfall over the several weeks exacerbated the situation due to additional water entering the wastewater system from inflow and infiltration.

Groundwater (infiltration) seeps into sewer pipes through holes, cracks, joint failures, and faulty connections. Stormwater (inflow) flows into sewers via roof drain downspouts, storm drain crossconnections, and through holes in manhole covers.

Based on staff’s recommendation, the City Council authorized spending $250,000 to perform emergency work at the wastewater treatment plant at the February 5, 2024 meeting by Resolution No. 2024-03.

REVIEW & ANALYSIS
The work over the last week at the WWTP disposal fields has included:
• Engaged Swift Tectonics to regrade the levees for Disposal Fields A, B and C. After visiting the WWTP last Tuesday, they moved in equipment and began grading work on Friday, February 9th.

They worked Saturday, February 10th and continued this last week. • Rain 4 Rent installed pipe and a pump to convey treated wastewater to the Emergency Overflow Basin on Friday, February 9th.
• Polaris Consulting (Contract City Surveyor) performed a topographic survey of the disposal fields to determine the design elevations for the levees to guide Swift Tectonics grading work. • Staff installed a pump at Disposal Field B to pump water from Field B to Field C. • Public Works staff cleared vegetation the levees in preparation for the work by Swift Tectonics. • City staff has also cleared vegetation from the ponds in the treatment plant. • Staff disced and ripped the emergency basin before discharging into it via the Rain 4 Rent pipeline. • Staff was at the WWTP last Saturday and Sunday to monitor the grading work and to start and stop the pumps to the emergency pond and Field B.
• Staff continue to keep the pumps running by filling with diesel fuel and moving pumps as needed.

Staff informed Regional Board staff of the emergency work prior to engaging the contractors and performing any field work.

Staff will provide additional information on the emergency work including incurred costs as part of our presentation at the Council meeting.

Explain: This emergency work supports our Vision by making improvements to the wastewater treatment plant’s ability to safely contain and treat sewage.

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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: Maintaining and improving the wastewater treatment plant enhances the community’s quality of life by providing for treatment and safe disposal of the City’s wastewater.

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

ALTERNATIVES
There are no alternatives to performing this emergency work.

BUDGET IMPACT
At the February 5, 2024 City Council meeting, staff was authorized to spend up to $250,000 on Emergency repairs at the wastewater treatment plant. This project is funded with Sewer Impact funds.

CONCLUSION
It is recommended that the City Council receive this progress report on the Emergency Repairs at the City’s Wastewater Treatment Plant.

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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-04 - Lease Agreement with Pisoni Farms

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2024-04, A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Lease Agreement between the City of Gonzales and Pisoni Farms for a City-Owned Parcel Adjacent to Canyon Creek Park.

BACKGROUND
When the Canyon Creek Subdivision was constructed, the developer deeded a 9.24-acre parcel to the City which is comprised of the Canyon Creek Park (6.32 acres) and a remainder parcel (2.92 acres) just west of the park. The remainder parcel (“Property”) was to be developed as a City park, with use for agricultural activities until the park plans came to fruition. The Property was thereafter leased to Pisoni Farms as part of the nearby Breschini Ranch in 2006. However, that lease was allowed to expire in or around 2008.

Over the last ten years, staff pursued grant funding on several occasions to develop the parcel as an extension of the existing Canyon Creek Park without any success. Last August, City staff engaged Piini Realty to prepare a “fair market” rental appraisal of the Property that was completed in November 2023.

REVIEW & ANALYSIS
The recent appraisal calculated an annual rent for the Property of $3,855. The rental value is diminished as the Property has no physical access, no water, or other utilities, and borders other farmland.

Staff prepared the attached lease agreement for the Property at an annual rent of $3,855 with an annual increase of 3.0% or Consumer Price Index, whichever is greater. According to John Piini, farmland AGENDA
ITEM
19 Packet Pg. 85
leases run from November 1st to October 31st, so the new lease is effective November 1, 2023 for an initial three year term with one 23-month extension based on mutual agreement.

Due to the recent adoption of the Surplus Lands Act (“SLA”), codified at Government Code Section 54220 et seq., leases, and sales of surplus City property suitable for the development of affordable housing are subject to a process whereby, unless otherwise exempted, the property must first be made available to affordable housing developers before it can be conveyed or leased for other purposes.

Surplus land is property that is owned by a City in fee simple which has been deemed unnecessary for City use. (The act of selling or leasing the property reflects the fact that the property is unnecessary for City use.)
However, a lease of City property for which no development or demolition will occur and that has a term of less than five years is not considered a “disposition of surplus property” and is not subject to the provisions of the SLA. (See Surplus Land Act Guidelines-Section 102(h)(1)). The proposed lease, which involves unimproved property without plans for demolition or development and has a maximum term of less than 5 years, is outside the scope of SLA requirements.

Therefore, staff recommends that the City Council authorize execution of a lease with Pisoni Farms for the Property, a parcel adjacent to Canyon Creek Park, at a cost of $3,855/year.

Explain: Establishing fair market rental agreements for City-owned properties provides a reasonable source of income to the City. Continued accommodation of agricultural uses, where possible, is also in keeping with City policies and commitments.

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

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ALTERNATIVES
Direct staff to adjust the annual lease payment or other lease terms.

BUDGET IMPACT
Approving this new lease will bring additional rental income to the City.

CONCLUSION
It is recommended that the City Council adopt Resolution No. 2024-04, A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Lease Agreement between the City of Gonzales and Pisoni Farms for a City-Owned Parcel Adjacent to Canyon Creek Park.

Attachments:

1. Resolution No. 2024-04

2. Appraisal

3. Lease Agreement
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RESOLUTION NO. 2024-04

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY OF

GONZALES AND PISONI FARMS FOR A CITY-OWNED PARCEL ADJACENT TO

CANYON CREEK PARK
WHEREAS, when the Canyon Creek Subdivision was constructed, the developer deeded a

9.24-acre parcel to the City which is comprised of the Canyon Creek Park (6.32 acres) and a remainder parcel (2.92 acres) just west of the park; and WHEREAS, in 2006, the remainder property was leased to Pisoni Farms as part of Breschini Ranch; and
WHEREAS, over the last ten years, staff pursued grant funding on several occasions to develop the Property as an extension of the existing Canyon Creek Park without any success; and WHEREAS, in November 2023, Piini Realty provided the City with a “fair market” rental appraisal of the Property that calculated an annual rent of $3,855; and WHEREAS, the lease, which involves unimproved property without plans for demolition or development and has a maximum term of less than five years, is outside the scope of the Surplus Lands Act codified at Government Code Section 54220 et seq.; and WHEREAS, therefore, staff recommends that the City Council authorize execution of a lease agreement with Pisoni Farms for the property for an annual rent of $3,855/year, with an annual increase of 3.0% or Consumer Price Index adjustment, whichever is greater; and NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Gonzales that the City Manager is authorized to execute the Lease Agreement with Pisoni Farms for the City-owned parcel adjacent to Canyon Creek Park.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 20th day of February 2024, 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
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Attachment: Resolution No. 2024-04 (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) MARKET RENT APPRAISAL OF:

AGRICULTURAL PROCESSING FACILITY AT
1275 HANSEN STREET

SALINAS, MONTEREY COUNTY
REQUESTED BY: Patrick Dobbins
Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
APPRAISAL AS OF: November 1, 2023
APPRAISED BY: John W. Piini, MAI
Piini Realty Inc.
263 Lincoln Avenue
Salinas, CA 93901

CANYON CREEK FARMLAND PARCEL

GONZALES, MONTEREY COUNTY
APN 020-343-003
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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms)

TRANSMITTAL LETTER
November 15, 2023
Patrick Dobbins
Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
Re: Market Rent Appraisal Report
Canyon Creek Parcel
Dear Mr. Dobbins:

Upon your authorization, I conducted the investigations and analyses necessary to form an opinion as to the market rent of the 2.92±-acre Canyon Creek farmland parcel that is owned by the City of Gonzales and is farmed by Pisoni Farms. The property is identified as Monterey County Assessor Parcel Number (APN) 020-343-003.

Based on the inspection of the property and the investigations and analyses undertaken, I have formed the opinion that as of November 1, 2023, the market rental value of the property is $3,855 per year. The lease terms associated with the annual rent conclusion of $3,855 is that property taxes would be paid by the City of Gonzales.

The appraisal report that follows consists of 14 pages and sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth.

Respectfully submitted,
John W. Piini, MAI
Piini Realty Inc.

Certified General Real Estate Appraiser
State of California, BREA No. AG005214
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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page ii

TABLE OF CONTENTS
Transmittal Letter .......................................................................................................................................... i Table of Contents.......................................................................................................................................... ii Introduction...................................................................................................................................................3 Identification ............................................................................................................................................3 Purpose of the Appraisal ..........................................................................................................................3 Market Rent Defined............................................................................................................................3 Title...........................................................................................................................................................4 Client of the Appraisal ..............................................................................................................................4 Intended Use of the Appraisal..................................................................................................................4 Intended Users .........................................................................................................................................4 Effective Date of the Appraisal.................................................................................................................4 Date of Report..........................................................................................................................................4 Report Format ..........................................................................................................................................4 Scope of Work ..........................................................................................................................................4 Property History .......................................................................................................................................5 Property Description .....................................................................................................................................6 Location ....................................................................................................................................................6 Land Area..................................................................................................................................................6 Access.......................................................................................................................................................6 Soil & Topography ....................................................................................................................................6 Irrigation Water........................................................................................................................................6 Building Improvements ............................................................................................................................6 Assessed Valuation & Taxes .....................................................................................................................6 Subject Photographs.................................................................................................................................7 Market Rent..................................................................................................................................................8 Certification.................................................................................................................................................10 Limiting Conditions .....................................................................................................................................11 Qualifications of the Appraiser ...................................................................................................................15 Packet Pg. 91
Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 3

INTRODUCTION

IDENTIFICATION
The property of this appraisal assignment is the 2.92±-acre Canyon Creek farmland parcel that is owned by the City of Gonzales and is identified as Monterey County Assessor Parcel Number (APN) 020-343-003.

PURPOSE OF THE APPRAISAL
The purpose of the appraisal is to estimate the market rent of the property.

Market Rent Defined
The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluations, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options and tenant improvements (TI's).1 1 Dictionary of Real Estate Appraisal - 6th Editions. (Chicago: Appraisal Institute, 2015) p. 140.

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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 4
TITLE
Title is vested as follows:

City of Gonzales, a municipal corporation

CLIENT OF THE APPRAISAL
The client of this appraisal is the City of Gonzales.

INTENDED USE OF THE APPRAISAL
The intended use of this appraisal is for the client’s use pertaining to establishing a lease for the subject property.

INTENDED USERS
The intended user of this report is the client. The appraiser understands that the tenant of the Canyon Creek farmland parcel might be provided a copy of this appraisal; however, the tenant is not an intended user.

EFFECTIVE DATE OF THE APPRAISAL
This appraisal assignment represents a current appraisal in which the effective date of the appraisal and the valuation conclusion apply as of November 1, 2023.

DATE OF REPORT
This appraisal assignment was conducted between August and November 2023.

REPORT FORMAT
The report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser’s opinion of value.

Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated above.

SCOPE OF WORK
As part of this assignment, the appraiser inspected the property on August 24, 2023. The inspection was from the road frontage with the scope of observing the layout and general characteristics of the property.

In addition to the inspection, the appraiser reviewed parcel maps, soil maps and the Monterey County Assessor and Recorders records. The appraiser also met with Mr. Mark Pisoni, tenant of the Breschini Ranch, who provided information on the farming use of the subject, including the importation of water and access.

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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 5
The rental valuation of the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data was obtained from agricultural farm owners and tenants within the central portion of the Salinas Valley and the investigation of farm rents concentrated within a geographical area between Chualar and Soledad.

The results of the investigations and the analyses conducted are presented in this appraisal report, and were prepared by John Piini, MAI.

PROPERTY HISTORY
This parcel was part of the larger
Canyon Creek residential
subdivision, which is located
within the city limits of Gonzales
and is situated on the east side
of Highway 101, with access
provided from 5th Street. As a
condition of development, the
developer was required to deed

9.24 acres to the City of
Gonzales. The deeded acreage
includes the subject parcel and a 6.32-acre parcel (APN 020-343-002) that takes in Canyon Creek, a seasonal drainage course, and a buffer zone along the north end of the Canyon Creek residential subdivision.

The subject parcel is situated on an upper bench, which physically separates the subject from the water detention parcel and the Canyon Creek residential development. The subject has a triangle shape, no physical access, no utilities, and borders irrigated farmlands to the north and west. The historical use of the property is row crop vegetable farming as part of the adjoining farmland to the north and west. The adjoining farmland is referred to as the Breschini Ranch, and the subject parcel is farmed as part of the Breschini Ranch, which can provide access and irrigation to the subject.

Following the 2006 deeding of the subject parcel to the City of Gonzales, the Canyon Creek parcel was leased to the Breschini Ranch for an annual rent of One Dollar ($1.00). Currently, the property continues to be farmed as part of the Breschini Ranch; however, there are no records of any rental payments.

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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 6

PROPERTY DESCRIPTION

LOCATION
The Canyon Creek Parcel is located at the northwest end of the Canyon Creek residential subdivision, which is on the east side of Highway 101, Gonzales, California. The property borders irrigated farmland to the north and south.

The agricultural use in the immediate area is intensively farmed for growing most of the Salinas Valley vegetable crops produced in the area, including but not limited to head lettuce, leaf lettuces, broccoli, cauliflower, and celery. The growing season is between March and November and most of the farmland in this area yields two vegetable crops per season.

LAND AREA
The property has a triangle shape that is bounded by the bank of Canyon Creek to the east and the Breschini Ranch to the north, west and south. As per the Monterey County Assessor’s maps, it contains a gross land area of 2.92 acres.

ACCESS
The property is physically separated from the Canyon Creek residential development by Canyon Creek and the steep bank that extends along its easterly boundary. There is no legal vehicle road access to the property from the Canyon Creek residential development, and the only access is from the adjoining Breschini Ranch, which the subject does not have a right-ow-way or easement.

SOIL & TOPOGRAPHY
The property has a level terrain, and the soil is Salinas clay loam. This soil has a Class 1 capability rating and is considered a prime soil for growing a variety of Salinas Valley vegetable crops.

IRRIGATION WATER
The property does not have developed water. Water to irrigate this parcel is provided from the adjoining Breschini Ranch. The tenant on the Breschini Ranch extends portable irrigation pipelines across the adjoining field road as there are no underground irrigation pipelines on the property.

BUILDING IMPROVEMENTS
There are no building improvements.

ASSESSED VALUATION & TAXES
The property is publicly owned and hence it does not have an assessed value, though it is subject to annual direct property taxes. The direct taxes for the 2022-2023 tax year are $9.80.

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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report
– Canyon Creek Parcel Page 7

SUBJECT PHOTOGRAPHS
Canyon Creek Parcel as seen from its south
triangular point looking north. The subject is
in the middle of the picture with the City of
Gonzales’ Canyon Creek water detention-
recreational parcel on the lower bench to the
right and the Breschini Ranch on the left side
of the overheard power line.

Canyon Creek Parcel as seen from its north
end looking south. Breschini Ranch and the
booster pump, which is used in providing
water to the subject, is to the right side of the
dirt road and overheard power line.

East side of the Canyon Creek Parcel looking
south. The Canyon Creek water detention
parcel on the left side of the road and the
Canyon Creek residential subdivision in the
background..

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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 8

MARKET RENT
In estimating the market rent, the appraiser investigated Gonzales area agricultural rents for properties that can be independently farmed; and investigated and analyzed agricultural rents for properties like the subject that are basically landlocked and without water and can only be farmed by the neighbor.

The investigation of Gonzales area farmland rents concentrated on the central portion of the Salinas Valley, between Chualar and Camphora. The general area investigated is depicted in the map below.

Within the area depicted above, 8 farm leases summarized below are included in this report, and these properties provide a reflection of the gross agricultural rents for this area. Due to the confidential nature of leases, the parties and/or properties are not specifically identified.

Ranch Lease term DG soils Clay loam soils
Lower bench,
sandy loams
Usable
acres
2023 Season
Gross Rent
2024 Season
Gross Rent
1 11/1/2022 to 10/31/2025 0% 100% 0% > 400 $2,050 $2,050 2 11/1/2023 to 10/31/2025 5% 85% 10% 100 - 400 $2,150 $2,255 3 11/1/2022 to 10/31/2025 0% 100% 0% 100 - 400 $2,400 $2,410 4 11/1/2023 to 10/31/2025 0% 75% 25% 100 - 400 $2,300 $2,420 5 11/1/2022 to 10/31/2025 0% 100% 0% 100 - 400 $2,425 $2,430 6 11/1/2022 to 10/31/2025 5% 90% 5% > 400 $2,465 $2,465 7 11/1/2023 to 10/31/2026 0% 100% 0% 100 - 400 $2,408 $2,560 Packet Pg. 97
Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 9
Ranches 1 through 6 are the most comparable to the subject as to location and soil. Ranch 7 is improved with a single-family dwelling and outbuildings that are included with the lease and this property is superior.

Based on the above, the market rent for farmland in the general area of the subject with level, Class 1 soil, developed water, access and of adequate size to be farmed independently of a neighboring property is estimated at $2,400 per acre.

However, the subject does not have access nor water and is only 2.92 acres, which is too small to be considered an economic unit. Due to these factors, a rental discount applies. Historically, in the Salinas Valley farmland properties that are landlocked, and do not have water, rent is about 35 to 60% less than the neighboring properties that do not have those limitations. Cases-in-point include two current agricultural leases involving landlocked properties that are owned by public entities and are leased to the neighboring farm property, which can provide water and access.

Based in part on the above, with consideration of the small size and triangular shape of the property, which diminishes its agricultural efficiency, a discount of 45% is considered reasonable and the gross annual rent is summarized as follows:

Note: The lease terms associated with the annual rent conclusion of $3,855 is that property taxes would be paid by the City of Gonzales.

Lessor Year Annual
Leased
acres
Contract rent
per acre
Market rent
per acre Difference
Discount
from Market
City of Salinas Animal Shelter 2024 $30,837.28 12.293 $2,509 $4,000 $1,491.48 37.29% Salinas Airport 2024-2029 $78,733.20 77 $1,023 $2,500 $1,477.49 59.10% Market rent for larger properties with access and water $2,400 Discount applied due to property limitations 45%
Amount of discount -$1,080
Gross market rent per acre $1,320
Usable acres 2.92
Annual market rent for 2024 $3,854
Rounded to $3,855
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Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 10

CERTIFICATION
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • I have not performed any real estate services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
• I have made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, John W. Piini, MAI has completed the continuing education program for Designated members of the Appraisal Institute.

John W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG005214
Packet Pg. 99
Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 11

LIMITING CONDITIONS
Assumptions and Limitations of Appraisal
This appraisal is for no purpose other than property valuation, and the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations to the accuracy of the information and analyses contained in this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read this entire section to understand these limitations.

Appraisal is not a Legal Opinion
No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report.

No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use.

It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for this appraisal.

It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation.

Any significant question should be addressed to local zoning or land use officials and/or an attorney.

It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and regulations affecting the subject property.

Packet Pg. 100 Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 12
Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless a signed contract has been executed prior to the date of this report.

Appraisal is not a Survey
No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist.

It is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted in the report.

All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, encroachments, or other survey matters.

Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with Limited Data
This appraisal should not be considered a report on the physical items that are a part of this property.

Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these matters in this report should be considered preliminary in nature.

The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or other components
The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for any such condition or for any expertise or engineering to discover them.

No opinion is expressed as to the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated.

Packet Pg. 101 Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 13
No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. It is further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted in the report. If any problems of this nature are known to the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. If it is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at additional cost will be necessary to estimate the effects of such.

Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition or adequacy of any particular item, we would strongly suggest that a construction expert be hired for a detailed investigation.

Appraisal Report Limitations
Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property or the real estate market. While no factors we believe to be significant but unknown to the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information provided by others, etc.

Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue additional data gathering for a higher level of certainty.

Packet Pg. 102 Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 14
Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act. Any actions taken by you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just the value estimate and information given in this report.

Appraisal reports made for lenders are technical documents specifically made to lender requirements.

Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of the information contained in these reports.

Neither all nor any part of the contents of this report, especially any conclusions as to value or the identity of the appraiser or the firm to which appraiser is connected, shall be disseminated to the public for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author.

The estimated market value, which is defined in the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions.

The value estimates consider the productivity and relative attractiveness of the property physically and economically in the marketplace as of the date of value.

The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised.

Acceptance of Appraisal Report
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

This appraisal is an estimate of value based on an analysis of information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, or if any conditions become apparent not previously known to the appraiser(s) which would affect the value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will be necessary.

Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received by the appraisers(s).

Packet Pg. 103 Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 15

QUALIFICATIONS OF THE APPRAISER
John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of Monterey, San Benito, Santa Cruz and Santa Clara Counties.

Academic Background
Formal Education
University of California, Los Angeles, BA degree -1974
Appraisal Education
Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements.

Since 1983, John Piini has completed a number of appraisal courses and seminars and is current with Appraisal Institute’s continuing education requirement.

Professional Experience
1975 - 1983 Associate appraiser with Joe Piini, MAI
1983 - present Part owner of Piini Realty, a family owned and operated real estate firm involved in appraising, brokerage, and property management. John Piini specializes and the majority of work activity is in the selling and appraising of agricultural properties in Monterey, San Benito, Santa Clara and Santa Cruz Counties
Appraisal Assignments
The majority of assignments pertain to the valuation of agricultural and acreage properties for a variety of purposes including estate planning, conservation easements, trust management and financial lending. Valuations of commercial, industrial special-use, residential and development properties are also performed.

Professional affiliation and memberships
MAI – Member of the Appraisal Institute – Certification Number 6708 California Certified General Real Estate Appraiser – OREA # AG005214 California Licensed Real Estate Broker – DRE # 00542238 Monterey County Board of Realtors
Packet Pg. 104 Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) Appraisal Report – Canyon Creek Parcel Page 16
Partial listing of clients
Attorneys and Law Firms
Anthony Lombardo
Allen, Allen & Caroselli
Biegel Law Firm
Chilton & House
JRG Attorneys
Kennedy, Archer & Harray
Leach & Walker
Ferrari, Ottoboni, Caputo &
Wunderling
Horan/Lloyd
Moncrief & Hart
Matteoni, O’Laughlin & Hetchman
Michael Cling
Noland, Hamerly, Etienne & Hoss
Ottone & Leach
Penrose, Chun & Gorman
Spiering, Swartz and Kennedy
William F. Stoffers
Agricultural Companies
American Farms
Anthony Costa & Sons
Bengard Ranch
Braga Fresh Family Farms
California Giant
Christensen & Giannini
D’Arrigo Brothers of California
Dobler and Sons
Dole Fresh Vegetables
Duda Farms
Driscoll Strawberry Association
Enza Zaden, USA
Fresh Express
Huntington Farms
Merrill Farms
Naturipe Berry Farms
Nunes Company
Ocean Mist Farms
Queen Victoria
RC Farms
Reiter Berry Farms
Rio Farms
Scheid Vineyards
Tanimura & Antle
Taylor Farms
Triangle Farms
Uni-Kool Partners
Land Trusts
Land Trust of Santa Cruz County
Land Trust of Silicon Valley
Monterey County Agricultural &
Historical Land Conservancy
Santa Lucia Conservancy
Save-the-Redwoods League
The Big Sur Land Trust
The Nature Conservancy
The Wilderness Land Trust
Trust for Public Lands
Financial Institutions - Agricultural Valuations
American Ag Credit
1st Capital Bank
Farm Credit West
Pacific Valley Bank
Hancock Insurance Company
Homestead Capital
Met Life Insurance
UBS AgriVest
Wells Fargo Bank
PGIM Real Estate Agricultural Finance
RaboBank Agriculture
Packet Pg. 105 Attachment: Appraisal (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms)

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LEASE AGREEMENT BETWEEN THE

CITY OF GONZALES AND PISONI FARMS
THIS LEASE ("Lease") dated as of November 1, 2023, is entered into between City of Gonzales, a Municipal Corporation, ("Landlord") and Pisoni Farms ("Tenant").

RECITALS

1. Landlord previously purchased 3.114 acres of property (The “Premises”) from DKB homes with the intent of constructing a public park.

2. At the time of the purchase of the Premises, the land was used for agricultural purposes and Landlord agreed to allow the Premises to be used for such purposes until such time as Landlord actually constructs park facilities. The Premises was used for agricultural purposes pursuant to the terms of a previous lease that expired in or around 2008.

3. The Parties now desire to enter into a lease for agricultural purposes for a maximum term of less than five (5) years.

NOW THEREFORE, for good and valuable consideration,the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

Section 1. Premises
Landlord leases to Tenant and Tenant leases from Landlord the real property located in the County of Monterey, City of Gonzales, State of California, consisting of approximately 2.92 acres and described as APN 020-343-003 ("Premises"), as specifically described on Exhibit A, which is incorporated by reference.

Tenant expressly acknowledges and agrees that the Premises are being leased and accepted in their "as is," with all faults condition, without representation or warranty of any kind. Tenant agrees that neither Landlord or any of its agents have made any representations or warranties; express or implied, with respect to the physical, structural or environmental condition of the Premises or the future suitability of the Premises for the conduct of Tenant's intended business.

Section 2. Term
The term of this Lease is for an initial three-year period ("Term"), commencing on November 1, 2023, and ending on October 31, 2026, unless terminated earlier by Landlord's provision to Tenant of written notice that said term will end on a date not less than 60 days from the date of the mailing of said notice. Said termination is within Landlord’s sole discretion and may be exercised without establishing cause or Packet Pg. 106 Attachment: Lease Agreement (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms)

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explanation.

The initial three- year period may be extended by a Lease Amendment for a period not to exceed twenty-three (23) months upon mutual agreement by both parties.

Section 3. Rent
a) Tenant agrees to pay to Landlord Three Thousand, Eight Hundred Fifty-Five dollars ($3,855.00) per year. Payment is due November 1st of each year. b) In the event the Tenant fails to pay rent by the close of business by the fifth (5th) day of November or the Tenant’s check is returned by the financial institution on which it is drawn for insufficient finds, the Tenant shall pay Fifty Dollars ($50) as a late fee (the “Late Payment Penalty”). The Late Payment Penalty must be included with the rent payment.
c) The annual Lease amount will increase on each anniversary of the commencement date by the higher of either 3.0% or the annual percentage increase of the Consumer Price Index (“CPI”). For purposes of this Agreement, CPI means the Consumer Price Index for Urban Consumers, San FranciscoOakland-San Jose published by the Bureau of Labor Statistics of the United States Department of Labor.
d) Landlord acknowledges that no back rent or real property taxes are owing from Tenant or any sublessees for any possession of the Premises prior to the commencement of theTerm.

Section 4. Use
The Premises are to be used for farming of irrigated vegetable crops and related purposes. No part of the Premises shall be used for any different purpose. Tenant shall not do or permit any act to be done that will increase the existing rate or cause cancellation of insurance on the Premises . Tenant shall comply with all statutes, ordinances, regulations, and other requirements of all governmental entities that pertain to the occupancy or use of the Premises, and with all rules and regulations that are adopted by Landlord for the safety, care, and cleanliness of the Premises and the preservation of good order on the Premises.

Section 5. Taxes and Assessments
This Lease may create a taxable possessory interest, the timely payment of which, together with any other taxes or assessments imposed against Tenant or the activities of the Tenant shall be paid by Tenant before they become delinquent. Landlord shall be responsible for the payment of all real property assessments imposed on the Property by any improvement district or special taxing authority, to the extent applicable.

Packet Pg. 107 Attachment: Lease Agreement (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms)

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Section 6. Insurance
Tenant shall pay for and maintain insurance throughout the life of this Lease with General Liability coverage of $1,000,000 minimum coverage per occurrence and $2,000,000 aggregate. Tenant will furnish Landlord with proof of insurance issued by an insurer approved by Landlord showing the coverage to be in force and showing Landlord, its elected and appointed officials, employees and agents as named insureds for all periods of the Term. Landlord, and Tenant each waive the rights of subrogation that may arise against the other because of any act covered by insurance.

Section 7. Default
Each of the following shall be an Event of Default under this Lease:
a) If Tenant fails within five (5) days after written notice to make any payment required by the provisions of this Lease, when due;
b) If Tenant fails within thirty (30) days after written notice to correct any breach or default of the other covenants, terms, or conditions of this Lease; and c) If Tenant vacates, abandons, or surrenders the Premises prior to the end of the Term.

Section 8. Remedies
Upon the occurrence of an Event of Default under this Lease by Tenant, Landlord is entitled at Landlord's option to the following:
a) to reenter and take exclusive possession of thePremises; b) to collect immediately the present value of the unpaid rent reserved for the entire term, or to collect each installment of rent as it becomes due; c) to continue this Lease in force or to terminate it at any time; d) to relet the Premises for any period on Tenant's account and at Tenant's expense, including real estate commissions actually paid, and to apply the proceeds received during the balance of Term to Tenant's continuing obligations under this Lease;
e) to recover from Tenant the damages described in Civil Code §§ 1951.Z(a)(l), 1951.2(a)(2), 1951.2(a)(3), and l 951.2(a)(4), the provisions of which are expressly made a part of this Lease;
f) to restore the Premises to the same condition as received by Tenant, or to alter Packet Pg. 108 Attachment: Lease Agreement (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms)

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the Premises to make them suitable for reletting, all at Tenant's expense; and g) to enforce by suit or otherwise all obligations of Tenant under this Lease and to recover from Tenant all remedies now or later allowed by law.

Section 9. Maintenance and Repairs
Tenant acknowledges that the Premises are in good and safe condition and, agrees to maintain the Premises in good and safe condition. Tenant shall have the sole responsibility and duty, at Tenant's cost, to keep, maintain in good condition, and to repair as necessary, the Subject Property, and all improvements, alterations and fixtures as the same may currently exist and as may subsequently be located thereon. Tenant promises to surrender the Premises at termination of this Lease in the same condition as received, except for normal wear and tear and except for minor changes authorized by Landlord. Tenant agrees to make no repairs at the expense of Landlord.

Section 10. Assignment and Subletting
Tenant shall not encumber, assign, or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Subject Property or any improvements that may now or hereafter be constructed or installed on the Subject Property without first obtaining the express written consent of Landlord. The consent of Landlord to any assignment of Tenant 's interest in this Lease or the subletting by Tenant of the Subject Property or parts of the Subject Property shall not be unreasonably withheld.

Section 11. Indemnity
Tenant agrees to indemnify, hold harmless, and defend Landlord, its elected and appointed officials, employees, and agents from all claims and liability of every kind, including court costs and attorney's fees, arising in any way from any occurrence on the Premises, or related to the use or occupancy, specifically including, without limitation, any claim, liability, loss, or damage arising by reason of: (a) the death or injury of any person or persons, including persons who are employees, agents or sublessees of Tenant, or by reason of the damage to or destruction or contamination of any property, including property owned by Tenant or any person who is an employee, agent or sublessee of Tenant, and caused or allegedly caused by either the condition of the Premises, or some act or omission of Tenant or of some employee, agent, sublessee or administrator of Tenant; (b) any work performed on the Premises or materials furnished to the Premises at the instance or request of Tenant or any employee, agent, or sublessee of Tenant, and (c ) Tenant’s failure to perform any provision of this Lease or to comply with any requirement of law or any requirement imposed on Landlord or the Premises by any duly authorized governmental agency or political subdivision. Nothing in this Lease shall require Tenant to indemnify Landlord against liability to third persons resulting from the sole negligence or willful misconduct of Landlord.

Packet Pg. 109 Attachment: Lease Agreement (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms)

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Section 12. Landlord's Right to Perform for Tenant
If Tenant fails to perform any obligation under this Lease, Landlord shall be entitled to make reasonable expenditures to cause proper performance on Tenant's behalf and at Tenant's expense, and Tenant promises to reimburse Landlord for any expenditures within ten (10) days after written notice from Landlord requesting reimbursement, and failure of Tenant to make the reimbursement shall be deemed to be a default the same as a failure to pay an installment of rent when due. All obligations of Tenant to pay money are payable without abatement, deduction, or offset of any kind. Landlord shall have the right to enter the Premises at all reasonable times for the purpose of inspection, posting notices, or other lawful purposes.

Section 13. Notices
Any notice under this Lease shall begiven bymailing the notice, postage prepaid, by certified mail, return receipt requested or by any regional or nation overnight carrier, to Landlord and Tenant as the case may be to an address designated in writing by each party.

Section 14. Attorney Fees
In any action or proceeding by either party to enforce this Lease or any provision of this Lease, the prevailing party shall be entitled to recover reasonable attorney's fees and all other costs incurred.

Section 1566 Successors
The provisions of this Lease shall apply to and bind the heirs, successors, and assigns of the parties.

Section 16. Waiver
The failure of Landlord to enforce a provision of this Lease shall not be deemed a waiver for any purpose.

Section 17. Entire Agreement
This Lease, together with each attached exhibit, shall constitute the entire agreement of the parties, and may be modified only by a writing signed by the parties.

Section 18. Amendments
This Lease may be amended at any time and from time to time, provided that no amendment to this Lease shall be legally enforceable against Landlord or Tenant unless it is signed in writing, executed, and acknowledged by both parties.

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Section 18. Governing Law
This Lease shall be governed by and construed in accordance with California law.

IN WITNESS WHEREOF, the parties have executed this Lease on the date first written above.

LANDLORD:

City Manager
City of Gonzales
PO Box 647
147 Fourth Street
Gonzales, CA 93926
By: _______________________
Carmen Gil, City Manager
Date: ______________________
TENANT:

Pisoni Farms
Mark Pisoni
PO Box 908
28275 Alta Street
Gonzales, CA 93926
By: __________________________
Mark Pisoni
Date: _________________________
Packet Pg. 111 Attachment: Lease Agreement (2914 : Resolution No. 2024-04 Lease Agreement with Pisoni Farms) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 20, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Harris & Associates Agreement - Assessment Engineering Services for California Breeze Subdivision

RECOMMENDATION
It is recommended that the City Council Authorize the Execution of a Consulting Services Agreement between the City of Gonzales and Harris & Associates to provide Assessment Engineering services for the California Breeze Benefit Assessment District and the California Breeze Parks and Open Spaces Assessment District, for a not-to-exceed fee of $42,000, which includes a contingency budget of $3,350.

BACKGROUND
The City has eight assessment districts, formed in accordance with the provisions of the Lighting and Landscaping Act of 1972 or the Benefit Assessment Act of 1982. These districts provide funds for maintenance of specified improvements. The districts are:

1. California Breeze Subdivision Benefit Assessment District

2. California Breeze Subdivision Parks and Open Spaces Assessment District

3. Canyon Creek Subdivision Benefit Assessment District

4. Canyon Creek Subdivision Parks and Open Spaces Assessment District

5. Industrial Business Park Benefit Assessment District

6. Industrial Business Park Parks and Open Spaces Assessment District

7. Cipriani Subdivision Benefit Assessment District

8. Cipriani Subdivision Parks and Open Spaces Assessment District

AGENDA
ITEM
20 Packet Pg. 112
The two California Breeze Districts were the first assessment district established by the city in 1993. The formation documents for these Districts did not include an annual Consumer Price Index (CPI) adjustment to the Maximum Annual Assessment amount (the other six Districts all allow for an annual CPI adjustment). Therefore, the assessments for these two districts have not kept up with inflation and the city General Fund has been subsidizing the negative cash flow for the last several years.

REVIEW & ANALYSIS
Staff requested Harris & Associates to provide a proposal to prepare an Engineers Report and undertake a Proposition 218 process for the two California Breeze Assessment Districts services. Their January 30, 2024 letter proposal is attached and their not-to-exceed fee is $38,650.

Over the last nine years, Harris & Associates has prepared the Engineer Reports for the city’s eight assessment Districts. Harris & Associates is on the city’s on-call engineering consultant list as approved at the February 6, 2023 City Council Meeting.

Therefore, City staff recommends awarding a Consulting Services Agreement to Harris & Associates to prepare an Engineers Report and undertake a Proposition 218 process for the two California Breeze Subdivision Assessment Districts.

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: Going through a successful Prop 218 process to increase the assessments for the two California Breeze Assessment Districts will provide for the property owners to fully fund the costs for the specified maintenance efforts.

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 Yes No X N/A
Packet Pg. 113
Explain: Collection of the annual assessments enables the city to maintain improvements vital to public safety and the ongoing well-being of portions of the City’s housing stock.

ALTERNATIVES

1. The Council could decide not to increase the maximum assessment amount or add an annual CPI adjustment. This isn’t recommended as the annual assessments aren’t covering the District expenses, so the city General Fund is used to close the funding gap.

2. The Council could direct staff to obtain additional proposals for this contract. This isn’t recommended as Harris Associates has been the Assessment District Engineer for the last nine years and they have all the pertinent information needed for this contract.

BUDGET IMPACT
This $42,000 contract will be funded by the two California Breeze Assessment Districts if the Proposition 218 process to increase the maximum assessment amount and add an annual CPI adjustment is successful.

CONCLUSION
It is recommended that the City Council Authorize the Execution of a Consulting Services Agreement between the City of Gonzales and Harris & Associates to provide Assessment Engineering services for the California Breeze Benefit Assessment District and the California Breeze Parks and Open Spaces Assessment District, for a not-to-exceed fee of $42,000, which includes a contingency budget of $3,350.

Attachments:

1. Harris & Associates Letter Proposal

2. Consulting Services Agreement
Packet Pg. 114
1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com January 30, 2024
Mr. Patrick Dobbins
City of Gonzales
147 Fourth Street
Gonzales, CA 93926

PROPOSAL TO PROVIDE ASSESSMENT ENGINEERING SERVICES FOR PROPOSED ASSESSMENT RATE

INCREASES FOR THE CALIFORNIA BREEZE DISTRICTS
Patrick:

Since 1987, Harris & Associates (Harris) has been providing numerous public finance, financial engineering, and special projects to public agencies throughout the State of California, including the City of Gonzales (the “City”). As the City’s Assessment Engineer for your Landscape and Lighting Districts and Benefit Assessment Districts for the past nine years, we have helped the City confirm that there are secure funding sources for the ongoing maintenance of streetlights, landscaping drainage and other services. Our team looks forward to continuing to serve as a “trusted advisor” to the City. Harris has a proven track record with agencies throughout the state, administering special financing districts and successfully developing and implementing funding strategies.

Proven Success. Our work as the Assessment Engineer for the City over the past nine years has proven to be a successful partnership. Our team has the right knowledge and experience to continue this work and expand on the success of our partnership.

Providing the Right Solution. We understand the City’s districts and the expectations of the City and its staff. We develop creative solutions that address the City’s needs. We have experience providing district administration, financial reviews, formations and annexations, and Proposition 218 compliance services.

We understand that cities have limited resources and rely on Harris to keep their best interests in mind and act as an extension of their staff when managing such projects.

Familiarity with the City. Our project manager, Rick Clark, will continue to be your primary point of contact and will be actively engaged in project assignments. He has experience managing numerous project types and understands the importance of serving as an extension of staff. Rick’s experience working with the City and your districts prepares the Harris team to work efficiently with minimal guidance to carry out the scope of services, reducing demands on City staff and assuring the best interests of the City will be carefully maintained and protected. Because of our history with the City, we can quickly answer questions from Council, City staff, and the public.

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City of Gonzales
January 30, 2024

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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com The following is our proposal for Financial Engineering Services related to a Proposition 218 Assessment Rate Increases for the two California Breeze Landscape Maintenance District (the “LMD”) and the Benefit Assessment District (the “BAD”), collectively, the “Districts”.

The Districts do not generate sufficient revenues from the annual assessments to fund the improvements and services, and they were created prior to the implementation of Proposition 218. As a result, they do not have an annual escalation clause written into the Method of Assessment. The purpose of this project is to establish an increased assessment rate for the Districts and to incorporate an annual escalation factor to keep up with future inflation.

The project will include the preparation of an Engineer’s Report for each District based upon the requirements of the 1972 Act, the 1982 Act and Proposition 218 (Article XIII D of the California State Constitution). Our staff has been helping public agencies throughout California evaluate financing options and implement successful funding strategies for many years. Our team members understand the requirements of Proposition 218 and the importance of developing a strategy that will minimize the risk of a challenge.

PROJECT APPROACH, SCHEDULE AND COMPENSATION

SCOPE OF WORK
Phase 1 – Evaluate Funding Needs

1.1 Working with City staff, review past financials and future funding needs for the Districts, to gain an understanding of the desired levels of service and where the funding falls short.

1.2 Review and identify special versus general benefits that the District improvements and services provide, based upon a review the assessed parcels, annual budgets, recent court decisions and pending challenges.

1.3 Prepare a preliminary assessment methodology based on a detailed review of “special and general benefit,” quantify the special benefit conferred by the improvements and services provided, and identify an appropriate assessment rate for each District.

1.4 Meet with City staff virtually, to discuss and review preliminary assessment methodology and make one set of consolidated comments as appropriate.

Phase 2 – Prepare the Engineer’s Reports

2.1 Harris will finalize an assessment methodology. The methodology will be compliant with Proposition 218 and take into account the types of parcels that make up the Districts and the improvements and services provided. The assessment methodology will ensure that the proportionality requirements of Proposition 218 are incorporated into the calculation of the assessments for each District.

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City of Gonzales
January 30, 2024

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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

2.2 Prepare the Engineer’s Report for the increased assessments to include the following items:
• A brief description of the existing and increased assessments, • Description of improvements and services funded by the assessments, • Estimate of costs for landscape and lighting services funded by the assessments, • Method of Apportionment for the assessments,
• Identify and quantify general versus special benefit, • Description of an annual escalation factor for increasing the assessments, • A listing of parcels in each District and their maximum assessment amounts.

2.3 Provide a draft report for review by City staff and legal counsel, and incorporate one set of consolidated comments into the Engineer’s Report as appropriate.

2.4 Create and provide staff reports and Resolutions for Council meetings as requested.

2.5 Present Preliminary Engineer’s Report, if requested, to adopt Resolution of Intention and authorize an assessment ballot procedure. Attendance for this meeting is assumed to be via Zoom or other on-line platform.

Phase 3 – Coordinate Printing and Mailing of Property Owner Notice and Mailed Ballot

3.1 Prepare Preliminary Assessment Roll for mailing.

3.2 Prepare a draft Notice of Public Hearing and Assessment Ballot for review and comment by City staff and legal counsel.

3.3 Printing and mailing of individual notices and assessment ballots to property owners may be performed and coordinated with a mailing house. Costs of using a mailing house is not included in the Cost Estimate and will be invoiced at our cost if chosen. The City may also choose to conduct the mailing in-house.

3.4 Respond to requests for replacement ballots and to answer questions received from property owners during the balloting period.

3.5 Attend the Public Hearing to present Final Engineer’s Report and assist in the tabulation of the assessment ballots received following the close of the Public Hearing. Provide a ballot tabulation spreadsheet to facilitate calculation of the assessments for and opposed to the assessment to determine if a majority protest exists.

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City of Gonzales
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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

OPTIONAL/ALTERNATIVE SERVICES
Phase 4 – Development of Public Outreach Strategy

4.1 Harris will assist City Staff in the development of key messages for property owners that clearly explain the services provided, financial limitations and the need for additional revenue. The key messages can be woven into communication materials and public outreach efforts.

RESPONSIBILITIES OF THE CITY

1. Provide financial information and other pertinent data necessary to develop the budgets and prepare the assessment methodology.

2. Provide posting and publishing of all legally required meeting documents.

3. Retain qualified legal counsel to provide legal advice related to the increased assessment.

4. Postage and out of pocket costs for printing of Notices and Property Owner Assessment Ballots.

TENTATIVE SCHEDULE
Harris & Associates is available to begin work immediately. Prior to the start of work, we will schedule a conference call to develop a detailed project schedule with specific milestones. After approval of the Preliminary Engineer’s Reports by the City Council, Harris will coordinate the printing and mailing of the property owner Notices and Assessment Ballots for both Districts.

ESTIMATED FEE
Harris & Associates will provide the above described Scope of Services for the following lump sum fees.

Phase 1 – Evaluate Funding Needs .............................................................................. $2,200.00 Phase 2 – Prepare the Engineer’s Reports & Other Docs ........................................... $25,950.00 Phase 3 – Coordinate Printing/Mailing of Ballots/Attend Public Hearing .......................$6,850.00 Total Harris Fee ...................................................................................................... ..$35,000.00

OPTIONAL/ALTERNATIVE SERVICES
Phase 4 – Development of Public Outreach Strategy ..................................................... $3,650.00 Total Cost Estimate – Both Districts ....................................................... $38,650.00 Packet Pg. 118 Attachment: Harris & Associates Letter Proposal (2917 : Harris & Associates Agreement - Assessment Egnineering Services for California Mr. Patrick Dobbins
City of Gonzales
January 30, 2024

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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com The fee for printing, postage, and mailing of the Notice and Property Owner Ballots is not included in the lump sum fee above. These fees will be based on the actual cost to produce and mail the final approved documents based on the actual cost to produce and mail the final approved documents, based on, but not limited to, the number pages, printing both sides, the number of colors, the type of envelope, preprinted return envelopes, and return postage. If using a third-party mail house, the third-party mail house will invoice the City directly. If Harris is to cover these costs, a handling fee of 15% will be added to the costs for printing and mailing. Postage must be paid prior to mailing.

Invoices will be submitted once after the Preliminary Engineer’s Report has been delivered and once after the Public Hearing. Should the City direct the work to stop at any point during the process, an invoice will be submitted for work completed to date. All invoices shall be paid within 30 days of receipt The fees herein assume that the scope of work will be completed within six (6) months of execution of the agreement. If the time frame extends beyond six (6) months, additional fees may apply. Any additional fees will be discussed with the City ahead of implementation.

Additional services will be provided as mutually agreeable based upon Harris’ Hourly Rate Schedule at the time services are provided. Harris’ Hourly Rate Schedule for 2024 is shown below. Our rates will be adjusted by the consumer price index (CPI) on January 1, 2025 and each subsequent January 1st .

Title 2024 Billing
Rate
Vice President/Assmt.Eng. $300
Director $275
Sr. Consultant $300
Project Manager $200
Sr. Project Analyst $175
Project Analyst $140
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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

PROJECT TEAM
Harris & Associates specializes in serving the professional service needs of public agencies. Founded in 1974, Harris has a staff of 250 employee owners that includes financial and assessment engineering specialists and licensed civil engineers. We understand that successful projects have to address the concerns of property owners and taxpayers, be sensitive to the economic climate, and conform to local political realities. Harris team members are experts in special benefit analysis and have extensive knowledge of State codes and funding mechanisms relating to special financing districts, including Article XIIID of the California Constitution (Proposition 218) and related legislation. Team member for this project will include:

Alison Bouley, Vice President/PE, will serve as the Assessment Engineer on the project. Mrs. Bouley is a registered engineer and is Vice President of our Municipal and District Finance team. She has 25 years of experience in managing the programming and financing of infrastructure improvements consulting to cities, counties and special districts throughout the State. She has assisted agencies with the analysis of special benefit from various types of improvements, in accordance with the requirements of Article XIII D of the California State Constitution (Proposition 218). She will be in “responsible charge” as required by Section 4(b) of Article XIIID of the State Constitution, which requires that “all assessments be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California.” Ultimately, Mrs. Bouley will serve as the licensed professional who will oversee authorship of and sign the Engineer’s Report.

Rick Clark will serve as the Project Manager for this project. He has more than 28 years of experience in public finance and in-depth knowledge of Proposition 218. He has also been working with the City’s Districts for the past four years. Rick has comprehensive experience in special district formation, developing funding strategies to meet public agencies and constituents’ needs, and implementing those strategies. As project manager, Rick will have responsibility for the development and review of deliverables. He will coordinate project team activities, participate in key meetings and calls, and manage the project schedule and budget.

Principal-in-Charge – Donna Segura will serve as project director on the project. Ms. Segura is a Director of in our Municipal and District Finance team and leads the district formation and administration team.

She has over 23 years of special district formation and administration experience consulting to cities, counties and special districts throughout the State of California. She has assisted agencies with the analysis of special benefit from various types of improvements, in accordance with the requirements of Article XIIID of the California State Constitution (Proposition 218). She has also performed formation and annual administration services for Mello-Roos Community Facilities Districts, and various other fee and special tax districts
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City of Gonzales
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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com Dennis Anderson, will serve as a Technical Advisor on the project. He has over 30 years of financial engineering experience consulting to cities, counties and special districts throughout the State of California. Dennis has assisted agencies with feasibility studies and the analysis of special benefit or approximate use from various types of improvements in accordance with the requirements of Article XIIID of the California State Constitution (Proposition 218) and the various fee, assessment and special tax acts within the State Codes. He has prepared Engineer’s Reports and Special Tax Rate and Method of Apportionments, Boundary Maps and Assessment Diagrams, staff reports, and resolutions, and has assisted with presentations to agency boards and property owners, the preparation and mailing of notices and ballots, and ballot tabulation. He has also managed the annual administration of both bonded and maintenance districts, including facility acquisition and reimbursement. Early in his career, Dennis was an employee for two adjacent sanitary sewer districts in San Diego County which shared staff.

In addition to preparing public notices related to sewer charges, he was responsible for calculating connection charges, issuing sewer connection permits, preparing conditions of approval for new development, calculating annual sewer charges, placing charges on the annual property tax bills for collection, and responding to inquiries related to the sewer ordinances.

The Harris project team shown above will be supported by additional members of Harris’ public finance group as needed.

We are looking forward to working with you on this important project. If you have any questions regarding this proposal, we are pleased to discuss them at your convenience. As the project manager for this engagement, you may contact me at (949) 536-2526 or via email at [email protected].

Sincerely,
Harris & Associates Harris & Associates
Rick Clark, Project Manager Donna Segura, Director
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CONSULTING AGREEMENT BETWEEN THE CITY OF GONZALES

AND HARRIS & ASSOCIATES TO PREPARE ENGINEERS REPORTS AND UNDERTAKE A PROPOSITION 218 PROCESS FOR THE CALIFORNIA BREEZE ASSESSMENT DISTRICTS THIS AGREEMENT for consulting services is made by and between the City of Gonzales ("City") and Harris & Associates ("Consultant") (together sometimes referred to as the "Parties") as of February 20, 2024 (the "Effective Date").

Section 1. SCOPE OF SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in their Letter Proposal attached as Exhibit A at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on December 30, 2026, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as referenced in Section 8.

1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.1 above and to satisfy Consultant's obligations hereunder.

Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $40,000 notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant's proposal, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person.

Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant's estimated costs of providing the services required hereunder, Packet Pg. 122 Attachment: Consulting Services Agreement (2917 : Harris & Associates Agreement - Assessment Egnineering Services for California Breeze Consulting Services Agreement between February 20, 2024 City of Gonzales and Harris Associates Page 2 of 13
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including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoices. Consultant shall submit invoices during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date.

Invoices shall contain the following information:
 Serial identifications of invoices; i.e., Progress Bill No. 1 for the first invoice, etc.;  The beginning and ending dates of the billing period;  A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
 For each work item under each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense;
 The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder;
 Consultant shall give separate notice to the City when the total number of hours worked by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours within a 12-month period under this Agreement and any other agreement between Consultant and City. Such notice shall include an estimate of the time necessary to complete work described in Exhibit A and the estimate of time necessary to complete work under any other agreement between Consultant and City, if applicable.

2.2 Monthly Payment. City shall make payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.

2.3 <<Not Used>>

2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.

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2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the compensation schedule attached hereto as Exhibit B.

2.6 Reimbursable Expenses. Any reimbursable expenses are included in the authorized contract amount and shall be approved by city staff in advance.

2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.8 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets to verify costs incurred to that date.

2.9 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

Section 3. FACILITIES AND EQUIPMENT. Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement.

Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to the City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence that such insurance is in effect to City.

Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant shall maintain all required insurance listed herein for the duration of this Agreement.

4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by Consultant. The Statutory Workers' Compensation Insurance and Employer's Liability Insurance shall be provided with limits of not less than $1,000,000 per accident. In the alternative, Consultant may rely on a selfinsurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the Packet Pg. 124 Attachment: Consulting Services Agreement (2917 : Harris & Associates Agreement - Assessment Egnineering Services for California Breeze Consulting Services Agreement between February 20, 2024 City of Gonzales and Harris Associates Page 4 of 13
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discretion of the Contract Administrator. The insurer, if insurance is provided, or the Consultant, if a program of self-insurance is provided, shall waive all rights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement.

4.2 Commercial General and Automobile Liability Insurance.

4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than $1,000,000 per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles.

4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an "occurrence" basis. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001, Code 1 (any auto). No endorsement shall be attached limiting the coverage.

4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. The Insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
b. City, its officers, officials, employees, and volunteers are to be covered as insureds as respects: liability arising out of work or operations performed by or on behalf of the Consultant; or automobiles owned, leased, hired, or borrowed by the Consultant.
c. For any claims related to this Agreement or the work hereunder, the Consultant's insurance covered shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.

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d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days' prior written notice has been provided to the City.

4.3 Professional Liability Insurance.

4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than $2,000,000 covering the licensed professionals' errors and omissions. Any deductible or self-insured retention shall not exceed $150,000 per claim.

4.3.2 Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant shall purchase an extended period coverage for a minimum of five years after completion of work under this Agreement.
d. A copy of the claim reporting requirements must be submitted to the City for review prior to the commencement of any work under this Agreement.

4.3.3 Additional Requirements. A certified endorsement to include contractual liability shall be included in the policy.

4.4 All Policies Requirements.

4.4.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII.

4.4.2 Verification of coverage. Prior to beginning any work under this Agreement, Consultant shall furnish City with complete copies of all policies delivered to Consultant by the insurer, including complete copies of all endorsements attached to those policies. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. If Packet Pg. 126 Attachment: Consulting Services Agreement (2917 : Harris & Associates Agreement - Assessment Egnineering Services for California Breeze Consulting Services Agreement between February 20, 2024 City of Gonzales and Harris Associates Page 6 of 13
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the City does not receive the required insurance documents prior to the Consultant beginning work, it shall not waive the Consultant's obligation to provide them. The City reserves the right to require complete copies of all required insurance policies at any time.

4.4.3 Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, employees, and volunteers; or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.

4.4.4 Wasting Policies. No policy required by this Section 4 shall include a "wasting" policy limit (i.e., limit that is eroded by the cost of defense).

4.4.5 Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to affect this waiver of subrogation.

The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the consultant, its employees, agents, and subcontractors.

4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant's breach:
 Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
 Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or  Terminate this Agreement.

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Section 5. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Consultant shall, to the fullest extent allowed by law, with respect to all services performed in connection with this Agreement, defend with counsel reasonably acceptable to City, indemnify, and hold City, its officers, employees, agents, and volunteers, harmless from and against claims to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, ("Claims"). Consultant will bear all losses, costs, damages, expense and liability to the extent they arise out of, pertain to, or relate to such Claims, whether directly or indirectly ("Liability"). Such obligations to defend, hold harmless and indemnify the City shall not apply to the extent that such Liabilities are caused by the sole negligence, active negligence, or willful misconduct of the City or its officers, employees, agents and volunteers.

With respect to third party claims against the Consultant, the Consultant waives any and all rights of any type of express or implied indemnity against the Indemnitees.

Section 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws and regulations applicable to the performance of the work hereunder, including but not limited to, the California Building Code, the Americans with Disabilities Act, and any copyright, patent or trademark law. Consultant's Failure to comply with any law(s) or regulation(s) applicable to the performance of the work hereunder shall constitute a breach of contract.

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7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person's race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.

Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

Section 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant.

Consultant may cancel this Agreement upon 30 days' written notice to City and shall include in such notice the reasons for cancellation.

In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.

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8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.

8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the parties.

8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant's unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant.

Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement.

8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, the following:

8.6.1 Immediately terminate the Agreement;

8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;

8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or

8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

Section 9. KEEPING AND STATUS OF RECORDS.

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9.1 Records Created as Part of Consultant's Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement.

9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement.

Section 10 MISCELLANEOUS PROVISIONS.

10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Monterey or in the United States District Court for the Northern District of California.

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

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10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.

10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a "conflict of interest," as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.

Consultant hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous twelve months, Consultant warrants that it did not participate in any manner in the forming of this Agreement. Consultant understands that, if this Agreement is made in violation of Government Code §1090 et seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant.

Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.

10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.9 Contract Administration. This Agreement shall be administered by the City’s Public Works Director ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee.

10.10 Notices. Any written notice to Consultant shall be sent to:

Donna Segura, Director
Harris & Associates
60 West Alisal Street, Suite 200
Salinas, CA 93901 .

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Any written notice to City shall be sent to:

Mary Villegas, Administrative Specialist/Deputy City Clerk City of Gonzales
P.O. Box 647
Gonzales, CA 93926

10.11 Professional Seal. Where applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example.
_________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

10.12 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral.

Exhibit A Scope of Services

10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

10.14 Non-Responsibility for General Contractor Responsibilities and Duties. Unless otherwise agreed by City and Consultant in writing, nothing in Consultant's services shall be construed to mean that Consultant assumes any of the contractual responsibilities or duties of the general contractor. The general contractor is solely responsible for construction means, methods, sequences and procedures used in the construction of a project and for related performance in accordance with its contract with the City. The general contractor shall not be relieved of its responsibility for the safety of the workplace or for the method or manner of construction. The Consultant and its personnel have no authority to exercise any control over or charge of acts or omissions of the general contractor or their employees in connection with the construction work.

The Parties have executed this Agreement as of the Effective Date.

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CITY OF GONZALES HARRIS & ASSOCIATES
Carmen Gil, City Manager Donna Segura, Director
Attest:

Mary Villegas, Deputy City Clerk
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EXHIBIT A

LETTERPROPOSAL
Packet Pg. 135 Attachment: Consulting Services Agreement (2917 : Harris & Associates Agreement - Assessment Egnineering Services for California Breeze 1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com January 30, 2024
Mr. Patrick Dobbins
City of Gonzales
147 Fourth Street
Gonzales, CA 93926

PROPOSAL TO PROVIDE ASSESSMENT ENGINEERING SERVICES FOR PROPOSED ASSESSMENT RATE

INCREASES FOR THE CALIFORNIA BREEZE DISTRICTS
Patrick:

We understand that cities have limited resources and rely on Harris to keep their best interests in mind and act as an extension of their staff when managing such projects.

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City of Gonzales
January 30, 2024

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PROJECT APPROACH, SCHEDULE AND COMPENSATION

SCOPE OF WORK
Phase 1 – Evaluate Funding Needs

1.1 Working with City staff, review past financials and future funding needs for the Districts, to gain an understanding of the desired levels of service and where the funding falls short.

1.4 Meet with City staff virtually, to discuss and review preliminary assessment methodology and make one set of consolidated comments as appropriate.

Phase 2 – Prepare the Engineer’s Reports

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City of Gonzales
January 30, 2024

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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

2.3 Provide a draft report for review by City staff and legal counsel, and incorporate one set of consolidated comments into the Engineer’s Report as appropriate.

2.4 Create and provide staff reports and Resolutions for Council meetings as requested.

Phase 3 – Coordinate Printing and Mailing of Property Owner Notice and Mailed Ballot

3.1 Prepare Preliminary Assessment Roll for mailing.

3.2 Prepare a draft Notice of Public Hearing and Assessment Ballot for review and comment by City staff and legal counsel.

3.4 Respond to requests for replacement ballots and to answer questions received from property owners during the balloting period.

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City of Gonzales
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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

OPTIONAL/ALTERNATIVE SERVICES
Phase 4 – Development of Public Outreach Strategy

RESPONSIBILITIES OF THE CITY

1. Provide financial information and other pertinent data necessary to develop the budgets and prepare the assessment methodology.

2. Provide posting and publishing of all legally required meeting documents.

3. Retain qualified legal counsel to provide legal advice related to the increased assessment.

4. Postage and out of pocket costs for printing of Notices and Property Owner Assessment Ballots.

ESTIMATED FEE
Harris & Associates will provide the above described Scope of Services for the following lump sum fees.

OPTIONAL/ALTERNATIVE SERVICES
Phase 4 – Development of Public Outreach Strategy ..................................................... $3,650.00 Total Cost Estimate – Both Districts ....................................................... $38,650.00 Packet Pg. 139 Attachment: Consulting Services Agreement (2917 : Harris & Associates Agreement - Assessment Egnineering Services for California Breeze Mr. Patrick Dobbins
City of Gonzales
January 30, 2024

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Title 2024 Billing
Rate
Vice President/Assmt.Eng. $300
Director $275
Sr. Consultant $300
Project Manager $200
Sr. Project Analyst $175
Project Analyst $140
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City of Gonzales
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1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

She has over 23 years of special district formation and administration experience consulting to cities, counties and special districts throughout the State of California. She has assisted agencies with the analysis of special benefit from various types of improvements, in accordance with the requirements of Article XIIID of the California State Constitution (Proposition 218). She has also performed formation and annual administration services for Mello-Roos Community Facilities Districts, and various other fee and special tax districts
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City of Gonzales
January 30, 2024

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The Harris project team shown above will be supported by additional members of Harris’ public finance group as needed.

Sincerely,
Harris & Associates Harris & Associates
Rick Clark, Project Manager Donna Segura, Director
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Gonzales City CouncilFebruary 20, 2024

Gonzales City Council
February 20, 2024