Agenda packet — Gonzales City Council, March 4, 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
MONDAY, MARCH 4, 2024
6:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

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

PRESENTATIONS

2. Gonzales Community Garden

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.

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

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

4. Approve the Joint City Council and Successor Agency - Regular Meeting - February 20, 2024 Minutes

5. Approve City Accounts Payable Warrants #49851-49932

6. Authorize the City Manager to execute an Agreement Between the City of Gonzales and Hilltop Securities to Provide Broker-Dealer Services Related to the Community Center Complex Project for a Not-to-Exceed Amount of $49,125

7. Authorize the Execution of a Consulting Services Agreement Between the City of Gonzales and Harris & Associates to Prepare the FY 2024-2025 Engineer Reports for Six Assessment Districts for a Not-to-Exceed Fee of $12,566

8. Progress Report on the Wastewater Treatment Plant Emergency Repair Work

9. Consider Approval of Resolution No. 2024-07, A Resolution of the City Council of the City of Gonzales Opposing State Initiative 21-0042A1 Taxpayer Protection and Government Accountability Act; and Support Cal Cities’ Efforts to Oppose it by Providing a Letter of Support

GONZALES YOUTH COUNCIL UPDATES

10. Oral Communications

BUSINESS FROM CITY COUNCIL

11. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
b. Mayor Selection Committee
c. Salinas Valley Recycles
d. Central Coast Community Energy

12. Oral Communications

BUSINESS FROM CITY MANAGER

13. Oral Communications

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
TUESDAY, FEBRUARY 20, 2024
5:00 P.M.

CALL TO ORDER
The meeting was called to order at 5:00 PM by Mayor Jose L. Rios.

PLEDGE OF ALLEGIANCE
Mayor Pro Tem Funk 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
Absent.

STAFF PRESENT
City Manager Carmen Gil, City Attorney Michael F. Rodriquez, 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, Fire Chief Jason Muscio, and Police Chief Keith Wise.
* Successor Agency Item
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Minutes Acceptance: Minutes of Feb 20, 2024 5:00 PM (CONSENT AGENDA) AGENDA
ITEM
4

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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]
City Attorney Rodriquez announced that staff needed to add another item to the closed session that was needed for immediate action and came up after the agenda was posted. The second item to the closed session is regarding Madera v. City of Gonzales.

RESULT: APPROVED [UNANIMOUS] to add Another Closed Session Item after Item 2 regarding Madera v. City of Gonzales
MOVER: Liz Silva, Council Member
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco

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.

There was no public comment.

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.

The Council conferred with staff and legal counsel and provided direction. No other reportable action taken.

2.A The City Council will recess to closed session pursuant to Government Code Section 54956.9(A) to confer with its Attorney regarding pending litigation which has been initiated formally and to which the City is a party: Madera v. City of Gonzales.

The Council conferred with staff and legal counsel and provided direction. No other reportable action taken.

BUSINESS FROM THE PUBLIC

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

Roman Barba talked about problems with front yard fences around town and suggested having an ordinance on fencing.

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Minutes Acceptance: Minutes of Feb 20, 2024 5:00 PM (CONSENT AGENDA)

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Denise Velasquez, Sun Street Centers, announced the Narcan training and drive through distribution February 25th from 12pm-4pm at the Spartan Alley, and elaborated this was a collaboration with the four South County Cities who will also have their distribution on the same day.

CONSENT AGENDA

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 City Attorney Rodriquez notified the Council that staff distributed Resolution No. 2024-06, A Resolution of the City Council of the City of Gonzales Approving the Purchase of a John Deere Skid Steer with Implements from RDO Equipment Company in the Amount of $85,283, and Approve the Surplus Sale of the Existing 1980 John Deere Tractor. He said this was for Item 13 and was before them this evening. Staff wanted to memorialize the findings in the code regarding this purchase via resolution.

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
RESULT: APPROVED [UNANIMOUS] Consent Agenda Items 4-15
MOVER: Liz Silva, Council Member
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco

BUSINESS FROM CITY COUNCIL

16. Consider Appointment to the Planning Commission
Mayor Rios invited Alex Ramirez and Jose Chavez, who submitted letters of interest for consideration, to the podium. They both answered questions from Council Member Silva and Mayor Rios.

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Minutes Acceptance: Minutes of Feb 20, 2024 5:00 PM (CONSENT AGENDA)

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Mayor Rios made a recommendation to appoint Alex Ramirez.

RESULT: APPROVED [UNANIMOUS] to Appoint Alex Ramirez to the Planning Commission
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco City Attorney Rodriquez suggested keeping the application from Jose Chavez on an eligibility list in the event there is a vacancy, so we don't have to go back out.

The Council concurred.

17. Consider the Creation of a Fireworks Committee
Mayor Rios asked the Council if they had any candidates.

Council Member Worthy recommended Ruben Zurita.

Council Member Silva recommended Larry Rodriguez.

Mayor Rios recommended Eddie Ramirez.

Council Member Orozco recommended James Perry.

Mayor Pro Tem Funk mentioned he didn't have anyone at the moment but will come back with a recommendation.

City Attorney Rodriquez asked the Council for clarification on what the purpose was of forming this committee.

Mayor Rios responded so we can better serve the community, and get ideas on how to get rid of illegal fireworks, and for the members to work with both Police Chief and Fire Chief on coming up with ideas and solutions.

Council Member Orozco suggested doing something similar to the City of Seaside who had an illegal fireworks policy in place.

Mayor Rios recommended that staff meet with the committee members first and then have in mind that Council Members Worthy and Orozco can join the committee after. He said it would be nice to complete everything before July for implementation this year.

City Attorney Rodriquez hoped to have something in place by the end of May or sooner since it takes a couple of Council meetings to adopt ordinances if needed.

REGULAR AGENDA

18. Progress Report on the Emergency Repairs at the City’s Wastewater Treatment Plant Staff Report: Public Works Director Dobbins presented the staff report.

Public Comment: There was none.

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Minutes Acceptance: Minutes of Feb 20, 2024 5:00 PM (CONSENT AGENDA)

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The Council received the report. No action required.

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 Mayor Pro Tem Funk recused himself from Item 19.

Staff Report: Public Works Director Dobbins presented the staff report.

Public Comment: Roman Barba said if the $3,855 was per year, it was still too low and it should be more than that.

Alex Ramirez asked if a real estate company looked at it, because they normally compare properties. He thought an appraisal company would be accurate because the rent is too low.

Public Works Director Dobbins elaborated on what the appraisal consisted of which included the discounted amount because there's no water on the site, and it's landlocked so they had to adjust the market rate.

Council Discussion: Council Member Silva asked about the water and if they were farming and Council Member Worthy asked if there was a way we could get the rental money from the past since it hasn't been addressed in a lot of years. Council Member Orozco mentioned again that she was interested to see other City-owned properties and what the lease terms were, and what the proposed increases would be.

Public Works Director Dobbins responded that Pisoni farmed it and they brought their own water.

He added this was part of staff's efforts to look at leases of City property.

City Attorney Rodriquez replied no to Council Member Worthy’s question since the lease expired many years ago and elaborated on the process.

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

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 Mayor Pro Tem Funk recused himself from Item 20.

Staff Report: Public Works Director Dobbins presented the staff report.

Public Comment: Roman Barba commented about the sidewalks not being fixed and the problems with trees.

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Minutes Acceptance: Minutes of Feb 20, 2024 5:00 PM (CONSENT AGENDA)

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Council Discussion: Council Member Worthy asked if folks were aware of this when staff had that informational meeting with the people that live in that subdivision.

City Manager Gil responded that the folks that attended that meeting seemed to understand since their concerns were related to this, and knew the City was supplementing that. She said the group was very supportive and they would help getting the word out.

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

GONZALES YOUTH COUNCIL UPDATES

21. Oral Communication
No updates. Both Commissioners were absent.

BUSINESS FROM CITY COUNCIL

22. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
No report.
b. Association of Monterey Bay Area Governments
No report.
c. Monterey Salinas Transit
Council Member Worthy reported on the goal of having Narcan in all MST buses; SURF Project design about 95% done; and addition of 20 new bus drivers.

23. Oral Communications
Council Member Silva encouraged everyone to stay safe during the atmospheric river and to slow down. She also encouraged everyone to drop their ballots in the drop box in front of City Hall.

Mayor Pro Tem Funk thanked Public Works staff for all their efforts especially during the wet season, and they were always doing an amazing job.

Council Member Orozco announced the Lenten dinners on Fridays from 5:00pm - 7:00pm. She also thanked staff for always doing a great job and it’s an honor for the City to be recognized and receive an award by the Monterey County Business Council on the housing work. She also pointed out a policy that was in place many years ago regarding ice cream vendors and peddlers to obtain a business license and background check, and there seems to be an increase. She asked if staff could look into this.

Mayor Rios elaborated on the meeting he had with TAMC Executive Director Todd Mock regarding pothole work at Alta Street and maybe on Fourth Street too since we use it regularly for our festivities.

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Minutes Acceptance: Minutes of Feb 20, 2024 5:00 PM (CONSENT AGENDA)

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BUSINESS FROM CITY MANAGER

24. Oral Communications
City Manager Gil reported on the success of the Chair Yoga event; the Community Garden coming along; announced the Car Show on April 20th; the City being awarded the Monterey County Business Council Community Builders Award for our work on housing, which event will take place on April 26th at Spanish Bay; the Community Center Complex Groundbreaking Ceremony on April 27th at 1:00pm; and the Wine Festival on June 1st.

Police Chief Wise elaborated on the peddler’s permit process, requirements and enforcement.

Council Member Worthy asked if the Legion could cover the no parking sign posts when they have a funeral since they don't have parking and people complain.

Police Chief Wise said no because that's a school zone, especially when the school is in session.

CLOSED SESSION
City Manager Gil announced staff did not need to go into 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.

There was none.

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.

There was no need for this item.

ADJOURNMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Scott Funk, Mayor Pro Tem
SECONDER: Liz Silva, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco The meeting was adjourned at 7:12 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
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Minutes Acceptance: Minutes of Feb 20, 2024 5:00 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: 4:46 pm
Date: 02/15/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
49851 02/16/24 Printed 4343 4LEAF, INC. Plan Check Services 1,108.64 49852 02/16/24 Printed 1922 A & G PUMPING, INC. Porta-Potties 395.50 ABAG PUBLICLY OWNED 1,970.04
ENERGY
49853 02/16/24 Printed 256 Levelized Nat Gas Charges
49854 02/16/24 Printed 108 AIRGAS Propane & Oxygen 238.36 49855 02/16/24 Printed 2 ALL - SAFE ALARMS Monthly Monitoring 400.00 ALLIANT INSURANCE 312.00

SERVICES
49856 02/16/24 Printed 3045 Car Insurance
ALVAREZ TECHNOLOGY 46,485.42
GROUP, INC.
49857 02/16/24 Printed 3893 Server Software
49858 02/16/24 Printed 137 AMERICAN SUPPLY CO. Janitorial Supplies 881.64 49859 02/16/24 Printed 4415 ARNULFO ANDALON Water Deposits to be Refunded 82.78 49860 02/16/24 Printed 911 ANDREWS BLUEPRINT INC Scan Blueprints 103.79 ARMANASCO PUBLIC 9,000.00

RELATIONS,
49861 02/16/24 Printed 3284 Capital Campaign Support
49862 02/16/24 Printed 2830 AT&T Corp Yard Acct # 308309956 95.59 49863 02/16/24 Printed 3168 AUTOZONE INC. Washer Fluid & Socket Set 159.06 49864 02/16/24 Printed 1618 AVAYA FINANCIAL SERVICES Maintenance 641.26 49865 02/16/24 Printed 4417 ROSAURA AVILA Water Deposits to be Refunded 100.00 49866 02/16/24 Printed 3805 BADGER METER INC. Meter Charges 124.16 BANUELOS ENTERPRISES, 59.44
INC.
49867 02/16/24 Printed 1054 Fuel
49868 02/16/24 Printed 3526 BRYAN EQUIPMENT CO. Clips & Hog Rings 19.96 CAL-WEST LIGHTING AND 100.00
SIGNAL
49869 02/16/24 Printed 3838 Traffic Signal Monthly Maint. 49870 02/16/24 Printed 770 CARLOS ALBERTO ESQUIVEL Vosti Center Cleaning 400.00 CASNER EXTERMINATING, 1,040.00
INC.
49871 02/16/24 Printed 889 Pest Control
49872 02/16/24 Printed 212 CITY OF GONZALES Water Deposits to be Applied 17,304.28 49873 02/16/24 Printed 4062 COUNTY OF MARIN CAL-SLA Membership Dues 630.00 49874 02/16/24 Printed 1599 CRITICAL REACH APBnet Annual Support Fee 250.00 49875 02/16/24 Printed 1821 CSK AUTO, INC. Backhoe Maint. Supplies 115.19 CYPRESS COAST FORD 137.82

LINCOLN
49876 02/16/24 Printed 4063 Vehicle Maint.
49877 02/16/24 Printed 3028 D & J TIRE SERVICE Tire & Wheel Repair 1,950.30 49878 02/16/24 Printed 4184 DIMES MEDIA CORPORATION Sports Advertisement 450.00 49879 02/16/24 Printed 507 EMC PLANNING GROUP INC. Vista Lucia SEIR Agreement 22,471.35 49880 02/16/24 Printed 1771 EMPLOY AMERICA Janitorial Services & Carwash 1,245.81 49881 02/16/24 Printed 4418 JOSE JAIME ESCALANTE Water Deposits to be Refunded 132.82 49882 02/16/24 Printed 4317 F.A.S.T. SERVICES, INC. Translation Services - Housing Element 300.00 Update
49883 02/16/24 Printed 2313 FAILSAFE TESTING Ground Ladder Testing 651.36 49884 02/16/24 Printed 3550 ULYSES FIERROS Per Diem: Defensive Tactics/ Arrest 35.00 Control 2/29/2024
GONZALES ACE HARDWARE 170.95
INC.
49885 02/16/24 Printed 3274 Sealant
GONZALES TIRE & AUTO 39.33
SUPPLY
49886 02/16/24 Printed 3477 Washer Fluid & Oil Absorber 49887 02/16/24 Printed 1109 GONZALES UNIFIED SCHOOL Fuel - Dec. 2023 5,303.41 49888 02/16/24 Printed 4420 LORRAINE GONZALEZ Water Deposits to be Refunded 137.43 49889 02/16/24 Printed 289 GRANITE ROCK COMPANY Cold Mix 4,774.06 49890 02/16/24 Printed 4071 GREAT AMERICA FINANCIAL Copier Lease 1,462.94 GREEN VALLEY FARM 212.03
SUPPLY
49891 02/16/24 Printed 1319 PPE
49892 02/16/24 Printed 3228 HARRIS & ASSOCIATES, INC. CM Services 12,718.75 HILL BROTHERS CHEMICAL 4,108.25
CO
49893 02/16/24 Printed 4120 Chemicals
CHASE JOHN KASH 3.33

HOLLIDAY
49894 02/16/24 Printed 4419 Water Deposits to be Refunded 49895 02/16/24 Printed 3485 INFOSEND, INC. Utility Bills 1,325.70 49896 02/16/24 Printed 4381 JOHN F. OTTO, INC. Community Center Design 232,554.66 AGENDA
ITEM
5 Packet Pg. 10
Attachment: Warrants #49851-49932 (2933 : Approve City Accounts Payable Warrants #49851-49932) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 2
Time: 4:46 pm
Date: 02/15/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
LEAGUE OF CALIFORNIA 300.00
CITIES
49897 02/16/24 Printed 127 Membership Dues
49898 02/16/24 Printed 2686 DAVID & DONA LLOYD After Hours Phone Service 99.00 MAINTENANCE 50.00

SUPERINTENDENTS
49899 02/16/24 Printed 4421 Membership Application Tiffany Twisselmann
49900 02/16/24 Printed 4422 TYRONE MAYS Refund on Utiliy Account Credit 1619 210.89 Spumante Way
49901 02/16/24 Printed 1965 SANTIAGO MELGOZA Per Diem: Defensive Tactics/ Arrest 35.00 Control 2/29/2024
49903 02/16/24 Printed 72 MISSION UNIFORM SERVICE Towels 1,072.28 MONTEREY COUNTY 500.00

BUSINESS
49904 02/16/24 Printed 2721 Membership Dues
MONTEREY COUNTY 1,237.68

DISTRICT
49905 02/16/24 Printed 815 2022/2023 BAC
49906 02/16/24 Printed 3364 MP EXPRESS Notice to Appear 979.60 49907 02/16/24 Printed 4416 SALVADOR NAVARRO Water Deposits to be Refunded 58.51 49908 02/16/24 Printed 3787 NEW SV MEDIA Public Notice 275.48 49909 02/16/24 Printed 91 P. G. & E. Utilities Acct # 7686009735-1 8,696.35 49910 02/16/24 Printed 91 P. G. & E. Utilities Acct # 1024308210-3 49,145.04 49911 02/16/24 Printed 3821 PASSPORT LABS, INC. Citation Management 112.06 49912 02/16/24 Printed 4272 JULIA PEREZ Water Deposits to be Refunded 130.36 49913 02/16/24 Printed 4092 RAZZO LINK, INC. Internet 85.04 49914 02/16/24 Printed 4397 MAGDALENA RICO Water Deposits to be Refunded 25.77 SALINAS VALLEY SOLID 32,013.43
WASTE
49915 02/16/24 Printed 258 January Tonage Fees
49916 02/16/24 Printed 2685 SC FUELS Fuel 351.81
49917 02/16/24 Printed 4318 BRENT SLAMA Professional Planning Services 17,452.50 49918 02/16/24 Printed 2673 SPECTRUM Internet 480.89
49919 02/16/24 Printed 4361 STAPLES, INC. Office Supplies 1,063.41 49920 02/16/24 Printed SWINERTON SWINERTON BUILDERS PM/CM Services 11,480.40 49921 02/16/24 Printed 3880 THE MAYNARD GROUP Video Conference 284.49 THE SPCA OF MONTEREY 1,104.00
COUNTY
49922 02/16/24 Printed 1890 January Services
TRANS UNION RISK AND 137.40

ALTERNATI
49923 02/16/24 Printed 3175 TLO
49924 02/16/24 Printed 27 TRI - CITIES DISPOSAL Past Due Trash Services 6,594.12 49925 02/16/24 Printed 3577 U.S. BANK 1/8/2024 City Hall Acct # 4866 9145 5550 3,506.45 8537
49926 02/16/24 Printed 3577 U.S. BANK 2/6/2024 Public Works Acct # 4866 9145 476.66 5550 8537
49927 02/16/24 Printed 379 V & V MANUFACTURING, INC. Name Badge for Rivera 133.70 VALLEY SAW & GARDEN 215.15

EQUIPMENT
49928 02/16/24 Printed 174 Chainsaw Maint.
49929 02/16/24 Printed 3895 VESTRA RESOURCES INC. GIS Support 316.00 49930 02/16/24 Printed 4423 RHONDA LEE VIOLINI Refund on Utility Account Credit 417 2.58 Rincon Rd.

Total Checks: 79 Checks Total (excluding void checks): 510,828.46 Total Payments: 79 Bank Total (excluding void checks): 510,828.46 Total Payments: 79 Grand Total (excluding void checks): 510,828.46 Packet Pg. 11
Attachment: Warrants #49851-49932 (2933 : Approve City Accounts Payable Warrants #49851-49932) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 2:34 pm
Date: 02/22/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
ABAG PUBLICLY OWNED 3,940.08
ENERGY
49931 02/22/24 Printed 256 Levelized Nat Gas Charges
49932 02/22/24 Printed 2192 TYLER TECHNOLOGIES, INC. System Conversion 23,948.27 Total Checks: 2 Checks Total (excluding void checks): 27,888.35 Total Payments: 2 Bank Total (excluding void checks): 27,888.35 Total Payments: 2 Grand Total (excluding void checks): 27,888.35 Packet Pg. 12
Attachment: Warrants #49851-49932 (2933 : Approve City Accounts Payable Warrants #49851-49932) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 4, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Agreement with Hilltop Securities to Provide Broker-Dealer Services for the Community Center

RECOMMENDATION
It is recommended that the City Council authorize the City Manager to execute an Agreement with Hilltop Securities to provide Broker-Dealer services related to the Community Center Complex Project for the not-to-exceed amount of $49,125.

BACKGROUND
The Community Center Complex is estimated to cost $34,050,000. The construction of the project will be phased due to grant funding deadlines. Phase 1 will construct the Library, Teen Innovation Center, Courtyard, parking lot and landscaping. Phase 2 is the Community Center including the Community Hall, Fitness Center, commercial kitchen, meeting rooms and restrooms.

Phase 1 will be funded by a variety of sources including the following:
• Measure X (local sales tax) expected to provide $7,500,000 of project funding. • $5.0M State grant for the Teen Innovation Center secured by State Senator Anna Caballero • Community Development Block Grant (CDBG FY 2023/24 and FY 2024/25) • $1.8M County contribution to relocate existing library from the Gonzales Shopping Center • Two grants (Electric Vehicle Charging Station Grant from the California Energy Commission and Building Forward Library Infrastructure Grant Program)
• Capital Campaign with a $10.0M goal with pledges and contributions currently totaling $6.6M AGENDA
ITEM
6 Packet Pg. 13
The City applied to the US Department of Agriculture (USDA) for a low interest loan secured by City revenue sources, including Measure X. The formal application was submitted to USDA in July 2023 and the City received an approval letter from USDA in September 2023, indicating that a Rural Development Loan in the amount of $9,825,000 was approved for Phase 1 of the Community Center Project. The USDA Loan is effective upon completion of Phase 1, so the city must obtain an Interim Construction Loan (“Bridge Loan”).

Construction of Phase 1 is anticipated to begin by May 1, 2024 and be completed in November 2025.

REVIEW AND ANALYSIS
As mentioned above, the USDA requires the City secure an Interim Construction Loan (“Bridge Loan”) to fund construction of Phase 1. Upon completion of Phase 1, the USDA Loan will be put into place. A Bridge Loan may be completed through either a public sale of short-term notes or a direct loan with a bank. The process to secure such funding is expected to take 60 days. Prior to the execution of a Bridge Loan, staff will return to the City Council to obtain approval of the financing terms and related documents.

Hilltop Securities’ proposed fees for broker-dealer services related to the Bridge Loan range from $25,000 to $49,125. The range is provided as the fee will depend on the method of sale of the financing.

If a direct placement to a bank is the preferred option, Hilltop Securities’ fee will be $25,000. If a publicly offered securities is determined to provide the best combination of economics and timing, then the fee paid to Hilltop will not exceed $49,125.

The proposed Broker-Dealer services for the Bridge Loan be paid contingent upon the completion.

Work to secure the Bridge Loan will commence immediately upon approval of the Agreement.

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

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

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Please see explanation above for the Mission.

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

Packet Pg. 14
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing Yes X No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A

ALTERNATIVES
The City Council could direct staff to seek additional proposals. Staff doesn’t recommend this as Hilltop has provided the City with excellent service at competitive fees on several recent, important transactions.

Additionally, there is some urgency to engage them for the Bridge Loan for timely execution.

BUDGET IMPACT
Hilltop Securities’ expected costs are:

Secure Bridge Loan $49,125 estimated maximum
Hilltop Securities’ services for the Bridge Loan will be funded from GL 112-000-6245 (Community Center Project Funds – Contractual Services). The services provided in conjunction with the Bridge Loan will be contingent upon loan closing. USDA Loan proceeds cannot be used towards soft costs (interest costs or financing costs) and therefore the source of repayment of such components will come from other project funding sources.

CONCLUSION
It is recommended that the City Council authorize the City Manager to execute an Agreement with Hilltop Securities to provide Broker-Dealer services related to the Community Center Complex Project for the not-to-exceed amount of $49,125.

Attachments:

1. Hilltop Securities Agreement with Scope of Work
Packet Pg. 15
February 27, 2024
Patrick M. Dobbins
Public Works Director/City Engineer
City of Gonzales, California
Delivered Electronically
Re: City of Gonzales, Certificate Anticipation Notes – USDA Interim Financing Letter of Intent – Hilltop Securities
Mr. Dobbins:

On behalf of HilltopSecurities, we are pleased to provide the following terms for the proposed City of Gonzales (the “City” or the “Borrower”) 2024 Certificate Anticipation Notes (the “Notes”). The purpose of the Notes is to fund, in part, the construction of new city facilities (Community Center Project). The following terms for the proposed financing are preliminary and non-binding to any party. This letter should not be construed as a formal offer to purchase the Notes by HilltopSecurities. This letter will be replaced with either a Note Purchase Agreement or Note Placement Agreement between HilltopSecurities and the Borrower at such time as the underwriting or placement process is completed.

HilltopSecurities has preliminarily reviewed the City’s annual financial reports and understands it has received the USDA commitment (Letter of Conditions) for the take-out financing. HilltopSecurities is confident that the City can secure the interim financing with a public offering or using a private placement of the Notes. Current market rates and conditions demonstrate the most efficient financing is to do a publicly offered underwriting which is in part based upon our preliminary credit analysis and discussions with you on the City and the likely rating outcome.

The proposed terms are preliminary in nature and are subject to change based upon negotiations between the underwriter or lender and the Borrower. This letter is being provided solely to you for the purpose described herein and may not be disclosed to, or relied upon by, any other party other than the USDA and the Borrower’s advisors and consultants without prior written consent of HilltopSecurities.

We are pleased that you have asked us to consider your request and look forward to assisting you with the proposed transaction. If you have any questions, please contact Todd Smith at (760) 632-1347 or Josh Lentz at (602) 224-7112.

Regards,
Todd Smith Josh Lentz
Managing Director Senior Vice President
Packet Pg. 16
Attachment: Hilltop Securities Agreement with Scope of Work (2930 : Agreement with Hilltop Securities to Proivde Broker-Dealer Services for Proposed Notes of Participation Terms
Borrower: The City of Gonzales
Method of Sale: Public Sale
Underwriter: Hilltop Securities Inc.

Municipal Advisor: NHA Advisors
Bond Counsel: Kutak Rock
Disclosure Counsel: TBD
Notes Amount: Not-to-Exceed $9,825,000.00
Purpose: Construction of city owned facilities (Community Center Project).

Tax Status: Interest on the Notes will be exempt from gross income for Federal and State tax purposes.

Final Maturity: 3.0 years - Date: TBD.

Interest Payments: Semi-annual.

Principal Payments: Full principal is due upon the final maturity date. No principal amortization ahead of the stated maturity date unless Notes are redeemed prior to maturity.

Interest Rate: Rate is determined based on a public offering, or negotiation with a financial institution or a sophisticated market participant on the pricing date.:

MIG 1 Rated - 2.75%
MIG 2 Rated – 2.95%
Private Placement – 3.9% to 4% (Drawdown Option)
*preliminary and subject to change based upon market conditions and credit rating outcome.

Reserve Requirement: No DSR Required for the Notes.

Capitalized Interest: Interest will be capitalized and funded from the Borrower contribution through maturity of the Notes to the extent permitted under the Letter of Conditions anticipated to be issued by the USDA for permanent take-out financing.

Prepayment Provisions: Notes are callable in part or in whole on any date on or after 2 years at par plus accrued interest to the date of redemption, without premium.

Security: The Notes will be payable from Pledged Revenues. Pledged Revenues are defined as the proceeds of the sale of the Notes and any required Borrower contribution, representing capitalized interest and costs associated with this financing not covered under the USDA take-out. The proceeds of the sale of bonds or other obligations issued by the Borrower to refund the Notes and earnings derived from the investment of any of the foregoing. To the extent that capitalized interest, or the amount of take-out financing proceeds received by Packet Pg. 17
Attachment: Hilltop Securities Agreement with Scope of Work (2930 : Agreement with Hilltop Securities to Proivde Broker-Dealer Services for the Borrower, as applicable, are insufficient to pay in full the Notes, then the Notes will be payable from legally available sources of the City’s General Fund.

1. HilltopSecurities, as underwriter or placement agent have financial and other interests that differ from those of the Borrower.

2. The Borrower has consulted with its own financial, legal, accounting, tax and other advisors as applicable to the extend deemed appropriate.

Reporting Requirements: Subject to normal 15c2-12 reporting requirements.

Estimated Funding Date: May 2024
Fee Proposal:

Public Offering (Underwriting Discount) $5/1,000 or .5% of the par amount of bonds.

Private Placement $25,000 USD flat fee.

Packet Pg. 18
Attachment: Hilltop Securities Agreement with Scope of Work (2930 : Agreement with Hilltop Securities to Proivde Broker-Dealer Services for Hilltop Securities Inc.
777 S. Coast Highway 101
Suite104
Solana Beach, California 92075
Phone: 760.632.1347
[email protected]
HilltopSecurities.com
February 27, 2024
Patrick M. Dobbins
Public Works Director/City Engineer
City of Gonzales, California
Delivered Electronically
Re: Hilltop Securities Engagement Letter – Certificate Anticipation Notes Series 2024 (Community Center Project)
Dear Mr. Dobbins:

On behalf of Hilltop Securities Inc. (“we” or “HilltopSecurities”), we wish to thank you for the opportunity to serve as underwriter or placement agent for the planned financing (the “Securities”), in connection with proposed issuance of the $9,825,000 Certificate Anticipation Notes Series 2024 (Community Center Project). This letter will confirm the terms of our engagement; however, it is anticipated that this letter will be replaced by a Bond Purchase Agreement or Placement Agent Agreement with the City or City JPA as the issuer, to be entered into by the parties (the “Agreement”) if and when the Securities are priced following the successful completion of the offering or bond placement process.

1. Services to be Provided by HilltopSecurities. The City of Gonzales (“the “Issuer”) hereby engages HilltopSecurities to serve as the sole managing underwriter or placement agent of the proposed offering and issuance of the Securities, and in such capacity HilltopSecurities agrees to provide customary services, including but not limited to:
a. Review and evaluate of the proposed terms of the offering and the Securities b. Coordinate with the Issuer for the offering of the Securities c. Develop a marketing plan for the offering, including identification of potential investors
d. Assist in the preparation of offering documents and validation documents e. Contact potential investors, provide them with offering-related information, respond to their inquiries and, if requested, coordinate due diligence sessions f. Consult with Bond Counsel and other service providers about the offering and the terms of the Securities
g. Relay information regarding the offering process to the Issuer h. Negotiate the pricing, including the interest rate, and other terms of the Securities
Packet Pg. 19
Attachment: Hilltop Securities Agreement with Scope of Work (2930 : Agreement with Hilltop Securities to Proivde Broker-Dealer Services for 2 i. Manage the rating and credit enhancement process for the Securities j. Obtain CUSIP number(s) for the Securities and arrange for their DTC bookentry eligibility k. Plan and arrange for the closing and settlement of the issuance and the delivery of securities
l. Such other usual and customary underwriting services as may be requested As an underwriter, HilltopSecurities will not be required to purchase the Securities except pursuant to the terms of the bond purchase agreement, which will not be signed until successful completion of the pre-sale and offering period. This letter does not obligate HilltopSecurities to purchase any of the Securities. Any commitment to purchase Securities is subject to future credit, legal and business approvals by HilltopSecurities.

As a placement agent, HilltopSecurities will not be required to place the Securities except pursuant to the terms of the placement agent agreement. Under the placement agent agreement HilltopSecurities will place the securities in an arms-length commercial transaction with a qualified long-term investor or financial institution.

2. No Advisory or Fiduciary Role. Issuer acknowledges and agrees that: (i) the primary role of HilltopSecurities, as an underwriter, is to purchase Securities for resale to investors in an arm’s length commercial transaction between the Issuer, and HilltopSecurities and that HilltopSecurities has financial and other interests that may differ from those of the Issuer; (ii) HilltopSecurities is not acting as a municipal advisor, financial advisor, or fiduciary to the Issuer and has not assumed any advisory or fiduciary responsibility to the Issuer with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto (irrespective of whether HilltopSecurities has provided other services or is currently providing other services to the Issuer on other matters): (iii) the only obligation HilltopSecurities has to the Issuer with respect to the transaction contemplated hereby expressly are set forth in this agreement; and (iv) the Issuer has consulted or will consult its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate.

Issuer further acknowledges it is aware of the “Municipal Advisor Rule” of the Securities and Exchange Commission (effective July 1, 2014) and the underwriter exclusion from the definition of “municipal advisor” for a firm serving as an underwriter for a particular issuance of municipal securities. Issuer expects that HilltopSecurities will provide advice on the structure, timing, terms, and other matters concerning the Securities.

3. Fees and Expenses. HilltopSecurities’ underwriting fee/spread will not exceed $5.00/$1,000 of the principal amount of the Securities issued. The underwriting fee/spread will represent the difference between the price that HilltopSecurities pays for the Securities and the public offering price stated on the cover of the final offering document. The Issuer Packet Pg. 20
Attachment: Hilltop Securities Agreement with Scope of Work (2930 : Agreement with Hilltop Securities to Proivde Broker-Dealer Services for 3 will be responsible for paying all other costs of issuance, including without limitation, bond counsel, disclosure counsel, rating agency, and all other expenses incident to the performance of the Issuer’s obligations under the proposed offering.

HilltopSecurities’ Placement Agent Fee will not exceed a $25,000.00 flat fee and HilltopSecurities will cover their costs for its counsel, travel and related placement agent expenses. The Issuer will be responsible for paying all other costs of issuance and all other expenses incident to the performance of the Issuer’s obligations under the proposed offering.

4. Term and Termination. The term of this engagement shall extend from the date of this letter to the closing of the offering of the Securities. Notwithstanding the forgoing, either party may terminate HilltopSecurities’ engagement at any time upon at least 30 days’ prior written notice to the other party.

5. Miscellaneous. This letter shall be governed and construed in accordance with the laws of the State of California. This Agreement may not be amended or modified except by means of a written instrument executed by both parties hereto. This Agreement may not be assigned by either party without the prior written consent of the other party. This Agreement may be executed in counterparts.

If there is any aspect of this Agreement that you believe requires further clarification, please do not hesitate to contact us. If the foregoing is consistent with your understanding of our engagement, please sign and return the enclosed copy of this letter.

Again, we thank you for the opportunity to assist you with your proposed financing and the confidence you have placed in us.
[The remainder of the page intentionally left blank]
Packet Pg. 21
Attachment: Hilltop Securities Agreement with Scope of Work (2930 : Agreement with Hilltop Securities to Proivde Broker-Dealer Services for 4 Very truly yours,
Hilltop Securities Inc.

By:

Todd Smith
Managing Director
Hilltop Securities, Inc.

This Letter and Agreement is hereby accepted for and on behalf of Issuer on this ____ day of _____, 2024.

By: ________________________

Title: _______________________
[Signature Page to HilltopSecurities Engagement Letter – City of Gonzales Certificate Anticipation Notes Series 2024]
Packet Pg. 22
Attachment: Hilltop Securities Agreement with Scope of Work (2930 : Agreement with Hilltop Securities to Proivde Broker-Dealer Services for City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 4, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Agreement with Harris & Associates for Assessment Districts Engineer Reports

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 Prepare the FY2024-2025 Engineer Reports for six Assessment Districts for a not-to-exceed fee of $12,566.

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
7 Packet Pg. 23
At the February 20, 2024 meeting, the City Council approved an agreement with Harris Associates to prepare an Engineers Report and undertake a Proposition 218 process for the two California Breeze Subdivision Assessment Districts. Therefore, this item is to prepare the Engineers Reports for the other six assessment districts for FY 2024-2025.

REVIEW & ANALYSIS
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.

Staff requested Harris & Associates to provide a proposal to prepare the Engineers Report for the remaining six assessment districts. Their proposal is attached and their not-to-exceed fee is $12,566.

Therefore, City staff recommends executing 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: Collection of the assessments provides funds for the maintenance of a variety of improvements that enhance the quality of life in the subdivisions 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
Explain: See above Vision.

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 Explain: See above Vision.

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
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.

Packet Pg. 24

ALTERNATIVES
There are no alternatives to staff’s recommendation.

BUDGET IMPACT
This contract will be funded by various Assessment Districts.

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 Prepare the FY2024-2025 Engineer Reports for six Assessment Districts for a not-to-exceed fee of $12,566.

Attachments:

1. Consulting Services Agreement with Scope of Services Packet Pg. 25
Consulting Services Agreement between March 4, 2024
City of Gonzales and Harris Associates Page 1 of 13
1168358

CONSULTING AGREEMENT BETWEEN THE CITY OF GONZALES
AND HARRIS & ASSOCIATES TO PREPARE FY2024-25 ENGINEERS REPORTS

FOR SIX 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 March 4, 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, 2024, 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 $12,566 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 Scope of Work, 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. 26
Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts Consulting Services Agreement between March 4, 2024
City of Gonzales and Harris Associates Page 2 of 13
1168358
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.

Packet Pg. 27
Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts Consulting Services Agreement between March 4, 2024
City of Gonzales and Harris Associates Page 3 of 13
1168358

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. 28
Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts Consulting Services Agreement between March 4, 2024
City of Gonzales and Harris Associates Page 4 of 13
1168358
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.

Packet Pg. 29
Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts Consulting Services Agreement between March 4, 2024
City of Gonzales and Harris Associates Page 5 of 13
1168358
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. 30
Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts Consulting Services Agreement between March 4, 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 Harris & Associates’ Scope of Work

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.

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

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

Mary Villegas, Deputy City Clerk
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Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts

EXHIBIT A

SCOPEOFWORK
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Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts

SCOPE OF SERVICES
Harris and Associates to Prepare FY2024/25 Engineers Reports for six Assessment Districts
Harris and Associates (“CONSULTANT”) will prepare the FY2024/25 Engineers Reports for the Assessment Districts, as follows:

1. Scope of Services – Harris and Associates (“CONSULTANT”) will prepare the FY2024/25 Engineers Reports for the following Assessment Districts:
• Industrial Landscape Maintenance District (LMD)
• Industrial Benefit Assessment District (BAD)
• Cipriani Estates LMD
• Cipriani Estates BAD
• Canyon Creek LMDs (No. 1 - 3)
• Canyon Creek BADs (No. 1 - 3)
CONSULTANT efforts will consist of the following:
• Analysis of parcel changes within each assessment district • Preparation of annual assessment district engineer’s reports • Attendance at two City Council meetings, as requested • Submit an assessment roll for each assessment district, in required format, to the Monterey County Auditor/Controller’s office, and make all necessary corrections, if required, after receipt of an Exception Report from the County; and, • Provide the City with one bound copy of the Final Assessment Roll for each assessment district.

Consultant will coordinate with city staff on the FY2024-25 budgets and identify changes in the improvements to be maintained.

2. Schedule – CONSULTANT’s efforts are expected to be completed six (6) months after CITY authorization.

Tasks Estimated Start Mar April May Jun Jul Aug Sep Oct Notice to proceed/Initial Meeting Early March
Research & Database Update Early April
Receive Budgets from the City Late April
Draft Engineer's Reports Mid May
Review comments with City Late May
Final Engineer's Reports Late May
Resolution of Intention Early June
Public Hearing Mid June
Submittal to County By 08/1
Delivery of Final Assessment Rolls Late Oct
Annual Services for Assessment Levy (Maintenance Assessment District)

3. Compensation. In consideration for CONSULTANT providing the services herein described, the CITY agrees to compensate CONSULTANT with a fee of $12,566.

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Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts

4. Fee Allocation. Consultant estimates the allocation of cost for this task order to be as follows, per assessment district for Fiscal Year 2024-25 (includes Items 1a – 1f above)

DISTRICT FEE
Industrial LMD $2,060
Industrial BAD $2,060
Cipriani LMD $2,060
Cipriani BAD $2,060
Canyon Creek LMD 1 $721
Canyon Creek LMD 2 $721
Canyon Creek LMD 3 $721
Canyon Creek BAD 1 $721
Canyon Creek BAD 2 $721
Canyon Creek BAD 3 $721
TOTALS = $12,566
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Attachment: Consulting Services Agreement with Scope of Services (2928 : Agreement with Harris & Associates for Assessment Districts City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

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

BACKGROUND
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.

REVIEW & ANALYSIS
The work over the last two weeks at the WWTP disposal fields included:
• Run pumps and pipeline to discharge treated wastewater from Disposal Field C to the emergency pond.
• Staff pumped water out of Field A into Field B to dry out and rip Field A. • Swift Tectonics worked on the back of Field B and A to raise the levees AGENDA
ITEM
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• Swift Tectonics began grading work on the exterior levee for Field A. • Swift Tectonics did not work during the recent rainy days, but they were able to begin ripping Field A on Monday February 26, 2024.
• Staff will be removing and returning the Rain 4 Rent pipeline and pump on March 6.

Swift Tectonics will continue to grade and rip the Disposal Fields over the next several weeks. We are planning to wrap up this repair work by the end of March. The below table has the Cost to Date and Estimated Total cost for this effort:

Costs to Date Estimated
Future Costs
Swift Tectonics
(Grading Contractor) $26,142.32 $20,000.00
Rain for Rent
(Rental of pipe and pumps) $16,524.16 $6,000.00
Polaris Consulting
(City surveyor) $4,225.00 $4,500.00
Total = $46,891.48 $30,500.00
Expected Grand Total = $77,391.48
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 emergency work supports our vision by making improvements to the Wastewater Treatment Plant’s ability to safely contain and treat sewage.

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:

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• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision 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 contract is funded with Sewer Impact funds.

CONCLUSIONS
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

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 4, 2024
FROM: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-07 Opposing Initiative 21-0042A1 Taxpayer Protection and Government Accountability Act

RECOMMENDATION
It is recommended that the City Council review and consider adoption of Resolution No. 2024-07, A Resolution of the City Council of the City of Gonzales Opposing State Initiative 21-0042A1 Taxpayer Protection and Government Accountability Act; and support Cal Cities’ efforts to oppose it by providing a letter of support.

BACKGROUND
The Taxpayer Protection and Government Accountability Act, proposed by the California Business Roundtable, would revise the California Constitution with provisions that limit voter’s authority and input, adopt new and stricter rules for raising taxes and fees, and may make it more difficult to impose fines and penalties for violation of state and local laws.

The measure puts billions of local government tax and fee revenues at risk statewide with related core public service impacts. The measure could have significant negative impacts on the City of Gonzales’ operations and core service delivery.

REVIEW & ANALYSIS
The proposed constitutional initiative has the potential to impact local dollars significantly. Some of the major provisions include:

Fees and Charges:

AGENDA
ITEM
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• Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence. • Requires fees and charges paid for the use of local and state government property and the amount paid to purchase or rent government property to be “reasonable.” These fees and charges are currently allowed to be market-based. Whether the amount is “reasonable” (introducing a new legal standard aiming to force below market fee and charge amounts) must be proved by “clear and convincing evidence.”2 The standard may significantly reduce the amount large companies (e.g., oil, utilities, gas, railroads, garbage/refuse, cable, and other corporations) will pay for the use of local public property. • Prohibits fees on new development based on vehicle miles traveled.

Taxes:
• Taxes and fees adopted after Jan. 1, 2022, that do not comply with the new rules, are void unless reenacted.
• Invalidates Upland decision that allows a majority of local voters to pass special taxes.

The measure specifies that taxes proposed by the initiative are subject to the same rules as taxes placed on the ballot by a city council.
• Expressly prohibits local advisory measures which allow local voters to express a preference for how local general tax dollars should be spent.5 • Requires voter approval to expand existing taxes (e.g., Utility, Transient Occupancy) to new territory (e.g., annexations) or to expand the tax base (e.g., new utility service) • New taxes can only be imposed for a specific time period. • City charters may not be amended to include a tax or fee. • All state taxes require majority voter approval.

Fines and Penalties:
• May require voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.

Duties and Commitments
The League of California Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly opposes this initiative.

Local government revenue-raising authority is currently substantially restricted by state statute and constitutional provisions, including the voter approved provisions of Proposition 13 of 1978, Proposition 218 of 1996, and Proposition 26 of 2010. The Taxpayer Protection and Government Accountability Act adds and expands restrictions on voters and local government tax and fee authority.

Fees and Taxes:

Local governments levy a variety of fees and other charges to provide core public services.

Major examples of affected fees and charges are:
• Nuisance abatement charges, such as for weed, rubbish, and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs. • Commercial franchise fees.
• Emergency response fees, such as in connection with DUI. • Advanced Life Support (ALS) transport charges.
• Document processing and duplication fees.

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• Transit fees, tolls, parking fees, and public airport and harbor use fees. • Facility use charges, fees for parks and recreation services, garbage disposal tipping fees.

Virtually every City, County, and Special District must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies, including council-adopted increases to simply accommodate inflation, Cal Cities estimates the amount of local government fee and charge revenue at risk is approximately $2 billion per year including those adopted since Jan. 1, 2022. Over ten years, $20 billion of local government fee and charge revenues will be at heightened legal peril.

Fines and Penalties
Under existing law, cities are required to provide due process before imposing a penalty or fine for violation of its municipal code:

1. A local agency must adopt administrative procedures that govern imposing fines and penalties, including providing a reasonable period of time for a person responsible for a continuing violation to correct or remedy the violation [Gov't Code 53069.4].

2. Notice must be given to the violating party before imposing the penalty; and give the party an opportunity to be heard and present any facts or arguments [Merco Construction Engineers v. Los Angeles Unified School District (1969) 274 CA 2d 154, 166].

3. The fine may not be "excessive" [U.S. Constitution amendments VIII and XIV].

The initiative converts administratively-imposed fines and penalties into taxes unless a new, undefined, and ambiguous “adjudicatory due process” is followed. This provision may put at risk authority to impose fines and penalties for violations of state and local law.

Explain: Opposing this Initiative aligns with the City’s efforts to provide the community with robust opportunities for programs and services. This new initiative could impact current and future funding.

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ALTERNATIVES
The City Council can opt to not pass the resolution against this initiative and thus not support Cal Cities’ efforts, which is not ideal as its passage could have detrimental impacts on programs and City services.

BUDGET IMPACT
The Taxpayer Protection and Government Accountability Act will take back billions of dollars away from local government services statewide, potentially impacting us directly.

CONCLUSION
It is recommended that the City Council review and consider adoption of Resolution No. 2024-07, A Resolution of the City Council of the City of Gonzales Opposing State Initiative 21-0042A1 Taxpayer Protection and Government Accountability Act; and support Cal Cities’ efforts to oppose it by providing a letter of support.

Attachments:

1. Resolution No. 2024-07

2. Letter to League of California Cities Opposing Initiative 21-0042A1 Packet Pg. 48
RESOLUTION NO. 2024-07

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES OPPOSING INITIATIVE #21-0042A1
WHEREAS, an association representing California’s wealthiest corporations is spending tens of millions of dollars to promote a deceptive ballot measure currently eligible for the November 2024 statewide ballot; and
WHEREAS, the measure creates constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, which could force residents and taxpayers to pay more to maintain services; and
WHEREAS, the measure threatens billions of dollars every year in local government funding for services like fire and emergency response, law enforcement, affordable housing, services to support homeless residents, mental health services, and more; and WHEREAS, the measure is an attack on voters’ rights, containing undemocratic provisions that would make it more difficult for local voters to pass measures to fund services, provisions that retroactively cancel measures recently passed by voters, and provisions that prevent voters from passing advisory measures that provide direction on how they want their local tax dollars spent; and WHEREAS, the measure contains intentionally restrictive language that will encourage hundreds of frivolous lawsuits against cities and local governments – costing taxpayers many millions and stopping investments in vital local services; and
WHEREAS, the measure would make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and
WHEREAS, the measure is opposed by hundreds of local governments, teachers, firefighters, working families and local elected officials.

THEREFORE, BE IT RESOLVED that the City Council of the City of Gonzales opposes Initiative #21-0042A1.

PASSED AND ADOPTED by the Gonzales City Council at their regular scheduled meeting held on the 4th day of March 2024, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 49
Attachment: Resolution No. 2024-07 (2931 : Resolution No. 2024-07 Opposing Initiative 21-0042A1 Taxpayer Protection & Gov't Accountability Packet Pg. 50
Attachment: Resolution No. 2024-07 (2931 : Resolution No. 2024-07 Opposing Initiative 21-0042A1 Taxpayer Protection & Gov't Accountability Small town,big heart! ~ ¡Pueblo chico, corazóngrande!
147 Fourth Street · PO Box 647, Gonzales, CA 93926· Phone: (831)675-5000· Fax: (831)675-2644 https://gonzalesca.gov/
City of Gonzales
Council Member Liz Silva, Council Member Lorraine Worthy, Council MemberMaria Orozco MayorJose L. Rios,Mayor Pro TemScott Funk, City Manager Carmen Gil MayScott Funk
February 28, 2024
League of California Cities
c/o Public Affairs Department
1400 K Street, Suite 400
Sacramento, CA 95814
RE: Letter Opposing Initiative 21-0042A1
I’m writing on behalf of the City of Gonzales to oppose Initiative #21-0042A1, a November 2024 statewide ballot proposition. The measure is a significant threat to local control and voters’ rights that could jeopardize funding for vital services.

This measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impact they have on our communities, which could force residents and taxpayers to pay more to maintain basic services.

The measure puts billions of dollars currently dedicated to local services at risk, and could force cuts to fire and emergency response, law enforcement, services to support homeless residents, and more.

The measure is also an attack on voters’ rights, containing undemocratic provisions that would make it more difficult for local voters to pass measures to fund local services, provisions that retroactively cancel measures recently passed by voters, and provisions that prevent voters from passing advisory measures that provide direction on how they want their local tax dollars spent.

Furthermore, the measure contains intentionally vague and restrictive language that will encourage hundreds of frivolous lawsuits against cities and local governments — costing taxpayers millions and blocking investments, development, and long-term planning.

You may list the City of Gonzales in formal opposition to Initiative #21-0042A1 and include our City as part of the growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state opposed to this deceptive proposition.

Sincerely,
Jose L. Rios Carmen Gil
Mayor City Manager
Packet Pg. 51
Attachment: Letter to League of California Cities Opposing Initiative 21-0042A1 (2931 : Resolution No. 2024-07 Opposing Initiative 21-0042A1

Gonzales City CouncilMarch 4, 2024

Gonzales City Council
March 4, 2024