Gonzales City Council
August 5, 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.

A G E N D A

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
City Council Chambers – 117 Fourth Street
Gonzales, CA 93926
MONDAY, AUGUST 5, 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.

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

BUSINESS FROM THE PUBLIC

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

*
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.

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

3. Approve the Joint City Council and Successor Agency - Regular Meeting - July 22, 2024 Minutes

4. Approve City Accounts Payable Warrants #50536-50598

REGULAR AGENDA

5. Consider Approval of Resolution No. 2024-52, A Resolution of the City Council of the City of Gonzales Submitting to the Voters at the General Municipal Election to be Consolidated with the Statewide General Election Held on Tuesday, November 5, 2024, A Measure Increasing the City’s Transactions and Use Tax by One-Half Percent (0.5%) with the Use of the Tax Revenue to be Subject to Annual Audits by an Independent Auditor and a Citizen’s Oversight Committee. a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2024-52

6. Fourth of July Update
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Receive update

BUSINESS FROM CITY COUNCIL

7. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
b. Mayor Selection Committee
c. Salinas Valley Recycles

8. Oral Communications

BUSINESS FROM CITY MANAGER

9. Oral Communications

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

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

10. The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957(B)(1) - City Manager Evaluation.

ADJOURNMENT

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

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

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
MONDAY, JULY 22, 2024
6:00 P.M.

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

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

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

STAFF PRESENT
City Manager Carmen Gil (via zoom), City Attorney Michael F. Rodriquez, Community Development Director Taven Kinson 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 Sergeant Herbert Brown. * Successor Agency Item
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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
3

PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

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

PRESENTATIONS

2. Introduction of the New Youth Commissioners for FY 2024-2025 City Manager Gil introduced the two new Youth Commissioners and elaborated on their summer immersion program going on right now.

Emily Mendez and Valeria Cardenas, both incoming High School Seniors, expressed their happiness to be this year's Youth Commissioners.

City Manager Gil added that they will start attending the Council meetings once school starts.

3. Introduction of the Public Works Intern
Public Works Director Dobbins introduced Public Works Intern Juan Huerta. He mentioned this was the 6th summer the Public Works Department has had an intern, which was a real pride point for him to have this program here. He went over the different interns throughout the years, and the colleges they attended. He mentioned that Juan will be starting with the City of Soledad soon as an Assistant Engineer.

Public Works Intern Huerta said he has been an intern for the last three months and expressed his appreciation for this opportunity where he has learned a lot and it's a great place to work. He thanked the City and especially Public Works Director Dobbins for giving him this opportunity.

4. Salinas Valley Health Chief Executive Officer Introduction Joel Hernandez Laguna, Salinas Valley Health Board Member, mentioned he was here a few months ago updating the Council on the search process for the new Chief Executive Officer, which was a national search. He elaborated on the process and said he was happy to be here to introduce Dr. Allen Radner as the new Chief Executive Officer.

Dr. Allen Radner, Salinas Valley Health Chief Executive Officer, introduced himself and talked about what they're doing overall in healthcare and in the community of Gonzales.

He answered questions regarding wait time for appointments at the Taylor Farms Center and ensured they will make that better with new providers coming in.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

BUSINESS FROM THE PUBLIC

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

Henry Martinez Sr., 112 Tenth Street, commented about what happened at their party on Tenth Street on the 4th of July, and an incident for a ticket involving several officers and his family later that night. Henry Martinez Jr. showed a video while Martinez Sr. was talking.

Henry Martinez III, 116 Tenth Street, said he may have anger issues but that night he had the right to protect his sister not to get arrested. He elaborated on that incident; demanded a citizen’s arrest of the officers; and said he hated the police and wanted them gone forever.

April Martinez, 116 Tenth Street, commented about giving toys at the park on the 4th of July and an incident that occurred around 9:30pm at her home and getting hit by officers while she was protecting her son from getting arrested. Henry Martinez Jr. showed a video while she was talking. She continued saying she wanted to have the officers under citizen’s arrest; and she filed a complaint against the cops. She wanted Melgoza, Mendoza, and Perez gone.

Mayor Rios asked them to do either one or the other because it was hard to hear her when they had a video going and talking at the same time.

Elvira commented in Spanish about her son receiving a ticket on the Fourth for firing illegal fireworks and thought it was because he was around where everything was happening with the neighbors. She elaborated on the questions she asked the officers if she didn't sign the ticket; and her kids being present during the incident that happened with the neighbors. She asked if she could see the pictures of her son doing the illegal fireworks or if he was targeted because he was around all the illegal fireworks around them.

Diego Rodriguez, 128 Tenth Street, commented about what happened on the 4th of July in his neighborhood when cops started questioning him and threatening to arrest his mom if she didn’t sign the ticket; and seeing an officer hit Henry with the flashlight.

Ruben Zurita commented about a shed fire in Gonzales and incidents in other cities on the 4th of July and shared his concerns about information missing on the letters and banners. Didn’t know how many people got contacted, and people shouldn’t be hosing down roofs or tarps to prevent fires. He asked about holding future committee meetings.

Roman Barba commented about not having illegal fireworks landing on his house this year; a problem with tree in front of the post office due to sap; weeds around businesses; Park on First Street being an eyesore; and the whole old town needing to be cleaned.

Richard Dansby, Gonzales resident since 2010, shared his concern about the possibility of an accident when people come into town around the curb by Fifth Street due to cars being backed up. He suggested a traffic light for people to slow down.

Henry Martinez Jr. felt it was a joke on the 4th of July for having nine officers asking for him, and he elaborated on the incident that happened with him and his daughter and his family getting involved; teaching the cops a lesson; the illegal fireworks coming from the house next door; filing a complaint today against every single officer involved; and told them it was payback time.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

City Attorney Rodriquez suggested moving Item 18 up before Consent Agenda which was the California Breeze Assessments Election. He informed that we had to count about 130 ballots, and the Council could open the public hearing, receive comments, then send our Consultant to the back room to count the ballots during the rest of the meeting, and we will have the results before the end of the meeting.

Mayor Rios said he wanted to move Item 21 up as well because Scott will have to step off as he's a resident of California Breeze.

City Attorney Rodriquez mentioned we couldn’t do both because we won't know whether or not we're going to do that California Breeze item until the ballots are counted.

CONSENT AGENDA

6. Approve the Joint City Council and Successor Agency - Budget Meeting - June 17, 2024 Minutes

7. Approve the Joint City Council and Successor Agency - Regular Meeting - June 17, 2024 Minutes

8. Approve City Accounts Payable Warrants #50396-50535

9. City Manager’s Report

10. Community Development Department Activity Report

11. Community Engagement & Recreation Departments Activity Report

12. Fire Department Activity Report

13. Police Department Activity Report

14. Public Works/City Engineer Department Activity Report

15. Consider Approval and Authorize the City Manager to Sign an Agreement Between the City of Gonzales and C4 Consulting for Rendering Services That Support Youth Leadership Development

16. Consider Approval of a Consulting Services Agreement Between the City of Gonzales and Armanasco Public Relations, Inc. Dated July 23, 2024 through June 30, 2026 for an Amount not to Exceed $60,000 per Fiscal Year, for a Total Contract Amount of $120,000; and Authorize the City Manager to Sign it

17. Consider Approval of Resolution No. 2024-51, A Resolution of the City Council of the City of Gonzales Approving a Telecommunication Easement Agreement Between the City of Gonzales and TPA VI, LLC, Concerning the Acquisition of Lease Agreements with Verizon and T-Mobile for Cellular Tower Sites on the City Water Tower at 700 5th Street Council Member Silva asked if the activity reports were for the month of June and didn't include any information for anything that occurred in the month of July.

City Manager Gil responded that was correct. Staff prepared the reports for the previous month, and anything that happened in July will be on the following report.

RESULT: APPROVED [UNANIMOUS]
MOVER: Maria Orozco, Council Member
SECONDER: Liz Silva, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco *
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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

REGULAR AGENDA

18. Consider Approval of 1) Resolution No. 2024-40, A Resolution of the City Council of the City of Gonzales Conducting a Public Hearing, Considering All Assessment District Protests, Approving the Engineer’s Report, and Confirming the Levy of the California Breeze Benefit Assessment District NOS. 1, 2 and 3 for the Fiscal Year 2024-2025; and 2) Resolution No. 2024- 41, A Resolution of the City Council of the City of Gonzales Conducting a Public Hearing, Considering All Assessment District Protests, Approving the Engineer’s Report, and Confirming the Levy of the California Breeze Parks and Open Space Assessment Districts NOS. 1, 2, and 3 for Fiscal Year 2024-2025
This item was discussed before the Consent Agenda items.

Mayor Pro Tem recused himself from this item.

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

Mayor Rios opened the public hearing at 6:48pm.

Public Hearing: Richard Dansby, Homeowner, asked if his home was assessed in 2010 when he first moved there since there was mention that something hadn't been done in 30 years, the percentage used for 2025 scared him. He mentioned that as long as the assessment was fair, he was willing to pay for the workers mentioned on the second part.

Public Works Director Dobbins responded yes, it has been assessed every year. He clarified the maximum assessment was tied to the Consumer Price Index benchmark which is the San Francisco Bay Area CPI increase used April of every year, and that has worked well for the other six assessment districts. He noted that there was no CPI increase to the maximum assessment after 30 years, since this was in the early 90s, we're basically not covering the cost to maintain these two districts for operations and maintenance. For the Parks & Open Space, we have the Smith and Enright landscape contractor who's out there once a week, the other costs such as electric meters used; and for the Benefit Assessment, it was street maintenance and signs, and storm drain basins maintenance. He noted the report showed this was phased out over three years or four depending on the assessment based on the input of our Assessment Engineer Harris & Associates, to get us to full assessment to cover the cost.

Henry Martinez Sr., 112 Tenth Street, commented about the cost of homes in San Francisco being higher versus Gonzales and said to stop looking at big cities.

Henry Martinez Jr. commented about the only one person coming to defend themselves here and felt there should be more people speaking and defending themselves. He mentioned he didn't know anything until he sat at this meeting.

City Attorney Rodriquez clarified that all of the homeowners in the California Breeze districts were notified by mail and sent a ballot. They all had notice to the fact that this election was taking place, and we received a pretty good response, which was 130 ballots.

Mr. Martinez Jr. said they should be here speaking for themselves.

City Attorney Rodriquez responded we can’t tell people they have to come and speak, and in this case casting their ballots was how they spoke.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

Roman Barba commented about this being a pretty high jump, the property taxes going up every year, and suggested fixing the sidewalks.

Rick Clark, Harris & Associates, clarified the reason we use the CPI from the San Francisco Bay Area rather than somewhere else, was that the only CPI indexes that we have to use are either from San Francisco, Los Angeles, or San Diego. He understood the concern of the residents that the CPI may not apply to them but they don’t have much of an option to use anything other than using the closest one. In regards to the resident who commented about the 22% increase, he said that was high but that district was formed in the early 1990s and there had been no increase in the dollar amount since that time. He gave an example of a 3% average each year through the 30 plus years, where you would probably not have to have this issue tonight, since there would be plenty of money to pay for the streets and everything to be properly maintained. He explained that was the reason we were going through this process since the district doesn’t have the funds to maintain the district properly and to make the necessary repairs.

Mayor Rios commented about Canyon Creek having this increase on an annual basis and there’s plenty of money in that district to maintain it but the problem was California Breeze that there hasn’t been an increase for over 30 years, and right now the City is taking general fund money to pay for maintaining the park and streets, but can’t continue to do that and take money from the rest of the residents to take care of one area of town. He stated that area needed to be taken care of by that particular district which that was the way it had been set up.

City Manager Gil mentioned the City embarked on this process because we heard loud and clear from folks from that area that there were maintenance issues and as of June 30th of this year, Parks and Open Spaces District in California Breeze was in the red $252,000 taken from the general fund to cover those needs. She said this was an attempt to bring things to current and this was not going to cover everything, but we desperately need that funding to maintain Meyer Park and the surrounding areas. She clarified folks in that neighborhood were notified multiple times and received at least two reminders to send in their ballots, and thought over 100 ballots was a pretty good turnout so we’ll see where they stand. She also clarified it was impacting our general fund greatly and needed to consider what we were doing out there and how we maintain safety and reduce issues without continuing to go into the red in that subdivision.

City Attorney Rodriquez asked if there was anyone in the audience with the ballot that had not been submitted.

There was none.

Mayor Rios closed the public hearing at 7:03pm.

City Attorney Rodriquez mentioned at this point this matter was closed and will be reopened once the ballots had been cast, and hand over the ballots to Rick and Chief Muscio to count them, and the Council could move on with the agenda maters.

Ater considering Item 19, City Attorney Rodriquez reported that we will not be needing to Consider Resolutions No. 2024-40 and No. 2024-41 as we don’t have a final count yet but it looked like it was overwhelmingly been rejected. They will still be doing the California Breeze assessments that were on this agenda later on in the packet but with respect to Item 18, it had been overwhelmingly rejected. So far, there had been 5 yes votes and the rest were noes, and have 20 or so envelopes left.

The Council continued with the rest of the agenda items.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

Before considering the closed session, City Attorney Rodriquez asked Harris & Associates Engineer Rick Clark for an update on the final tally for Item 18.

Engineer Clark informed that 91% of the ballots were noes, and 9% yes.

Item died due to the outcome of the ballots.

19. Community Center Complex Project Progress Report and Task Order No. 2 with Harris & Associates
Staff Report: Public Works Director Dobbins presented the staff report.

Luis Flores, Harris & Associates Construction Manager, elaborated on the design development phase of the project, construction documents, and permit issuance for the construction happening at the moment. He elaborated on the grading pads occurring now and the day-to-day construction activities, project management, progress reports and budget updates.

Public Comment: Henry Martinez Jr. commented on the potholes damage that's going to happen on Fifth Street due to the construction.

Richard Dansby commented about making the kids aware to look and listen to the guys with the vested suits.

Roman Barba commented Fifth Street was a mess and wondered if they were going to pave the road. He believed this was caused by semitrucks.

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

20. Public Hearing to Consider Approval of Resolution No. 2024-42, A Resolution of the City Council of the City of Gonzales Approving and Accepting the Gonzales Police Department’s AB 481 Fiscal Year 2023-2024 Annual Military Equipment Report Pursuant to Government Code Section 7071(d), and Renewing City of Gonzales Ordinance No. 2022-131 “Approving Gonzales Police Department Policy Manual Policy 709-Military Equipment” Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 7:30pm.

Public Hearing: Henry Martinez Jr. commented about the drone's intention for the 4th of July and it wasn't being used due to the pilot being at his house, and believed there was no need for the drone and the AR-15s.

Henry Martinez Sr. commented about not trusting the police with using military equipment and the time an officer was shooting an AR-15; and the drone being at his house instead of catching everyone popping the fireworks while the operator was at his house.

Roman Barba expressed his opposition to this policy and believed it wasn't needed since this was one of the safest Cities with no crime. He opposed to the drone purchase and said it was a waste of money.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

Mayor Rios closed the public hearing at 7:37pm.

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

21. Public Hearing to Consider Approval of Resolution No. 2024-43, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2024-2025 - California Breeze Benefit Assessment District Nos. 1, 2 and 3; and Resolution No. 2024-44, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2024-2025 - California Breeze Parks and Open Spaces Maintenance Assessment District Mayor Pro Tem Funk recused himself from this item.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 7:45pm.

Public Hearing: No comments came forward.

Mayor Rios closed the public hearing at 7:45pm.

RESULT: APPROVED [4 TO 0] Resolution No. 2024-43 and Resolution No. 2024-44 MOVER: Liz Silva, Council Member
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Liz Silva, Lorraine Worthy, Maria Orozco RECUSED: Scott Funk

22. Public Hearing to Consider Approval of Resolution No. 2024-45, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2024-2025 - Canyon Creek Benefit Assessment District Nos. 1, 2 and 3; and Resolution No. 2024-46, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2024-2025 - Canyon Creek Parks and Open Spaces Maintenance Assessment District Nos. 1, 2 and 3
Council Members Worthy and Orozco recused themselves from this item.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 7:51pm.

Public Hearing: No comments came forward.

Mayor Rios closed the public hearing at 7:51pm.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

RESULT: APPROVED [3 TO 0] Resolution No. 2024-45 and Resolution No. 2024-46 MOVER: Scott Funk, Mayor Pro Tem
SECONDER: Liz Silva, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva
RECUSED: Lorraine Worthy, Maria Orozco

23. Public Hearing to Consider Approval of Resolution No. 2024-47, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2024-2025 - Gonzales Industrial Park Benefit Assessment District; and Resolution No. 2024-48, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2024- 2025 - Gonzales Industrial Park Landscape Maintenance Assessment District This item was discussed first, before item 21.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 7:43pm.

Public Hearing: No comments came forward.

Mayor Rios closed the public hearing at 7:45pm.

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

24. Public Hearing to Consider Approval of Resolution No. 2024-49, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2024-2025 - Cipriani Estates Benefit Assessment District; and Resolution No. 2024-50, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2024-2025 - Cipriani Estates Parks and Open Spaces Maintenance Assessment District Mayor Rios recused himself from this item.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Pro Tem Funk opened the public hearing at 7:53pm.

Public Hearing: No comments came forward.

Mayor Pro Tem closed the public hearing at 7:53pm.

RESULT: APPROVED [4 TO 0]
MOVER: Maria Orozco, Council Member
SECONDER: Liz Silva, Council Member
AYES: Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco RECUSED: Jose L. Rios
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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

At this time, City Attorney Rodriquez indicated for the record that the tallying of the ballots was still going on and there was no need to return to Item 18 as the results were clear that it was overwhelming response.

Mayor Rios asked for clarification where the majority of the money was being spent at that district.

Public Works Director Dobbins clarified the majority of the money was for the landscape maintenance efforts of the parks and open spaces.

BUSINESS FROM CITY COUNCIL

25. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
No report.
b. Association of Monterey Bay Area Governments
Mayor Pro Tem Funk reported they went dark in July.
c. Monterey Salinas Transit
Council Member Worthy reported on the capital improvements program including hydrogen upgrades and a microgrid design project; Narcan distribution policy; and York Students project. She mentioned MST will go dark in August.

26. Oral Communications
Council Member Worthy mentioned the 4
th of July festivities were amazing.

Council Member Silva mentioned the 4th of July was quite loud on the north end of Ninth Street where her cousin’s dog was traumatized, and it was sad to see the animals react. She knew the officers were busy ever since Memorial Day and it still continued, and there were three animals lost due to the shed fire in that area. She announced the Monterey Fair from August 28th- September 2nd, and hoped people would support the exhibitors. She reminded everyone school will start on August 8th and asked everyone to be careful with the extra bodies out there.

Mayor Pro Tem Funk said the 4
th of July festivities were great and thanked staff for continuing to do a great job, as well as the Police and Fire Departments, and he appreciated their presence and enforcement out there.

Council Member Orozco thanked everyone on behalf of Rotary who came to the 4th of July, as well as the Police and Fire Departments, and Mayor Pro Tem Funk and his wife and Monica for a great job on the parade. She said they will be looking at forming subcommittees to help with the different activities in the future. She announced the Annual Rotary Golf Tournament on August 10th, and anyone interested can sponsor the event or donate items for the silent auction, which proceeds to go scholarships. She thanked the City Manager and staff for their efforts on the Financial Literacy Workshop which was very well attended regarding the home buying process.

Mayor Rios thanked Rotary for the well-done event on the 4th of July. He thought the retention pond at the Canyon Creek subdivision was a waste of space and liked what Soledad was doing with one of the retention ponds which was used as a park. He understood we don't have money now, but in the future as the community grows, he thought we could add that open space area.

Fire Chief Muscio mentioned in that particular retention pond, there was a guy that slid down numerous times over the years, and it was way too steep to do anything with it, and it would also take tons of work to be able to make a usable area out of that. He said when you get to the flat areas you can see where it drops down and it's pretty steep.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

On another note, Mayor Rios said his last visit to Stanford was not as successful as he hoped to and elaborated on his vision problem and the bad news was that his left eye is pretty much done.

He mentioned that being said, he was really contemplating whether to run this year and he had decided that he would like to run these last two years and he guaranteed he will not run again after these two years because not only we have the development of the Vista Lucia, but the need for a new substation. He said he made some phone calls internally to PG&E as he still has friends, and they told him they hadn't even heard from the guys that do the planning, and he couldn't believe it because there had been some emails that there was movement on this. He said he made connections with the planning engineers and Randy hoping to move this project along. He said if people would support him for two more years with his mumbling of the agendas, he felt he was very committed to make sure we get the housing and substation. He felt if that substation was not built, there would be a lot of development that wouldn't get built in Gonzales because there's not enough power and for these reasons he decided to run again. He said he wanted to make this announcement.

BUSINESS FROM CITY MANAGER

27. Oral Communications
City Manager Gil reported we got notice about a grant we’re receiving and that will be coming before the Council at an upcoming meeting. She thanked the community for doing their part on the 4 th of July, as well as the Fire and Police Departments for having a well thought out plan of action and strategies in place that worked. She said staff will have an update at the next meeting. She reminded everyone about the senior programming coming back in August. She reported the housing meeting was quite successful and a lot of people who were interested in housing received a lot of good information. She wanted to make sure people know it's important to stay on top of the announcements that are coming out in the utility bills and social media pages, so they don't lose opportunities like these. She added United Way came out and had a great financial presentation for people who were interested in buying a home. She gave kudos to our Public Works Director Dobbins and everyone who worked in getting the final executed SRF Loan Agreement.

Council Member Worthy asked how the community garden was going as she had people ask what they could do.

City Manager Gil updated that staff met with all the partners at the site last Friday and Save the Whales will be coming monthly to do activities with kids there once school starts, and they will be notifying the various organizations involved as to what the need is out there. She said there will be more irrigation and people are now picking veggies and fruits. She encouraged anyone that would like to do anything there to reach out to Jessica Albor-Olmedo who will be happy to coordinate where things will go. She added that staff will be putting up signs shortly with the types of plants.

She concluded that people could have boxes as well, and Olinga was going to be leading that.

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.

28. The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957(B)(1) - City Manager Evaluation.

The Council engaged in the process. No other reportable action taken.

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Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA)

ADJOURNMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Council Member
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco The meeting was adjourned at 8:30 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 14
Minutes Acceptance: Minutes of Jul 22, 2024 6:00 PM (CONSENT AGENDA) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 8:09 am
Date: 07/22/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
50536 07/19/24 Printed 4343 4LEAF, INC. Building Official & Inspection 11,083.85 AGILE OCCUPATIONAL 350.00

MEDICINE PC
50537 07/19/24 Printed 4362 Employee Medical - testing
ALLIANT INSURANCE 3,951.00

SERVICES
50538 07/19/24 Printed 3045 Insurance
CAL COAST AUTOMOTIVE 500.00

REPAIR &
50539 07/19/24 Printed 3831 Vehicle Maint
50540 07/19/24 Printed 212 CITY OF GONZALES Water Deposits Applied 74.88 CODE PUBLISHING 931.00

COMPANY
50541 07/19/24 Printed 2825 Code Publish - Web Update
50542 07/19/24 Printed 2856 COUNTY OF SANTA CLARA COPLINK annual 637.58 50543 07/19/24 Printed 1410 DEPARTMENT OF JUSTICE Fingerprinting 972.00 50544 07/19/24 Printed 3348 EAST BAY TIRE CO Tires 718.88 50545 07/19/24 Printed 1771 EMPLOY AMERICA Janitorial Services 1,315.56 50546 07/19/24 Printed 4799 JOHANA SANTOS FIGUEROA Water Deposits to be Refunded -17 A St 100.00 50547 07/19/24 Printed 4800 ROBERTO SOTO GAYTON Water Deposits to be Refunded-647 100.00 Center St
GONZALES ACE HARDWARE 925.42
INC.
50548 07/19/24 Printed 3274 Paint Supplies
50549 07/19/24 Printed 3485 INFOSEND, INC. Utility bills & CCR Report 1,364.92 50550 07/18/24 Void 07/18/24 Void Check 0.00
50551 07/19/24 Printed 2818 JARVIS FAY LLP. Gonzales Industruial Park Land 10,518.50 50552 07/19/24 Printed 3828 LYNN A. KOVACH WWTF Field Survey 4,225.00 50553 07/19/24 Printed 4798 LA ESQUINA BAR AND GRILL Water Deposits to be Refunded 225.12 50554 07/19/24 Printed 3970 MNS ENGINEERS, INC. IW system PM services 53,065.00 50555 07/19/24 Printed 4797 PAPICH CONSTRUCTION Water Deposits to be Refunded 1,459.70 50556 07/19/24 Printed 3821 PASSPORT LABS, INC. Citation management 25.40 PITNEY BOWES GLOBAL 742.03

FINANCIAL
50557 07/19/24 Printed 93 Postage
PUBLIC AGENCY 506.71

RETIREMENT
50558 07/19/24 Printed 3194 PARS Admin
SALINAS VALLEY PRO 1,320.90
SQUAD
50559 07/19/24 Printed 2979 Uniforms - Garcia
SALINAS VALLEY SOLID 7,718.00
WASTE
50560 07/19/24 Printed 258 Admin Fees
SCHAAF & WHEELER, 825.00

CONSULTING
50561 07/19/24 Printed 3894 Johnson Canyon Waterline Desig 50562 07/19/24 Printed 4318 BRENT SLAMA Vista Lucia Annexation 5,265.00 50563 07/19/24 Printed 2673 SPECTRUM Internet - #170000701 1,199.00 50564 07/19/24 Printed 4389 STOMMEL INC. Unit 7 spotlight 1,077.08 THE SPCA OF MONTEREY 6,256.00
COUNTY
50565 07/19/24 Printed 1890 SPCA monthly fee
50566 07/19/24 Printed 4086 TRANS UNION LLC TLO 228.40
50567 07/19/24 Printed 27 TRI - CITIES DISPOSAL Tonage - 019905 2,539.64 50568 07/19/24 Printed 3577 U.S. BANK City Manager-City Credit Card 1,404.44 50569 07/19/24 Printed 3577 U.S. BANK General - Credit Card Purchase 5,465.31 50570 07/19/24 Printed 4154 VERITONE INC. Supplies 1,100.00 50571 07/19/24 Printed 3471 VERIZON WIRELESS Verizon service 608.16 50572 07/19/24 Printed 2919 WAGEWORKS Compliance Fee - Nov 2023 700.00 ALLIANT INSURANCE 6,971.80

SERVICES
50573 07/19/24 Printed 3045 Insurance renewal
ALVAREZ TECHNOLOGY 1,894.17
GROUP INC.
50574 07/19/24 Printed 2180 Tech support
50575 07/19/24 Printed 264 AMBAG annual dues 1,780.02
50576 07/19/24 Printed 341 PATRICK ASKEW Medical insurance benefit 361.00 50577 07/19/24 Printed 1800 AUTOMOTIVE & INDUSTRIAL Well 6 generator 369.60 50578 07/19/24 Printed 3168 AUTOZONE INC. Spark plug 415.58 50579 07/19/24 Printed 770 CARLOS ALBERTO ESQUIVEL Cleaning services 350.00 CODE PUBLISHING 931.00

COMPANY
50580 07/19/24 Printed 2825 Code Publishing
50581 07/19/24 Printed 1482 CSC OF SALINAS Aerosol 74.44 50582 07/19/24 Printed 1821 CSK AUTO, INC. maintenance 369.74 AGENDA
ITEM
Packet Pg. 15
Attachment: Warrants #50536-50598 (3059 : Approve Accounts Payable Warrants #50536-50598) 4 City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 2
Time: 8:09 am
Date: 07/22/2024
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
50583 Void Check 07/19/24 Void 07/19/24 0.00
GONZALES ACE HARDWARE 573.81
INC.
50584 Elbow 07/19/24 Printed 3274
50585 uniform cleaning 07/19/24 Printed 2599 YSAURO GONZALES 438.75 50586 Community center 07/19/24 Printed 3228 HARRIS & ASSOCIATES, INC. 50,954.15 50587 Well # 6 07/19/24 Printed 449 JOHNSON ASSOCIATES 46.87 50588 IW System Easements 07/19/24 Printed 3828 LYNN A. KOVACH 1,650.00 M3 ENVIRONMENTAL 1,100.00

CONSULTING
50589 07/19/24 Printed 3097 Asbestos testing
50590 MCCLEOA dues 07/19/24 Printed 673 MCCLEOA 500.00
50591 Uniforms 07/19/24 Printed 72 MISSION UNIFORM SERVICE 378.58 50592 Liability & Workers Comp Ins 07/19/24 Printed 22 MONTEREY BAY AREA SELF 322,354.13 MONTEREY COUNTY 42,542.00

EMERGENCY
50593 Quarterly bill 07/19/24 Printed 470
50594 Publication Notices 07/19/24 Printed 3787 NEW SV MEDIA 1,586.98 50595 PO Box Fee Payment 07/19/24 Printed 44 POSTMASTER 364.00 50596 Internet 07/19/24 Printed 4092 RAZZO LINK, INC. 85.04 50597 fuel 07/19/24 Printed 2685 SC FUELS 536.72
50598 Internet 07/19/24 Printed 2673 SPECTRUM 513.93
Total Checks: 63 Checks Total (excluding void checks): 566,641.79 Total Payments: 63 Bank Total (excluding void checks): 566,641.79 Total Payments: 63 Grand Total (excluding void checks): 566,641.79 Packet Pg. 16
Attachment: Warrants #50536-50598 (3059 : Approve Accounts Payable Warrants #50536-50598) City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 5, 2024
FROM: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-52, a Resolution Submitting to the Voters at the General Municipal Election to be Consolidated with the Statewide General Election Held on Tuesday, November 5, 2024, a Measure Increasing the City’s Transactions and Use Tax by One-Half Percent (0.5%) with the Use of the Tax Revenue to be Subject to Annual Audits by an Independent Auditor and a Citizen’s Oversight Committee

RECOMMENDATION
It is recommended that the City Council consider adoption of Resolution No. 2024-52, A Resolution of the City Council of the City of Gonzales Submitting to the Voters at the General Municipal Election to be Consolidated with the Statewide General Election Held on Tuesday, November 5, 2024, A Measure Increasing the City’s Transactions and Use Tax by One-Half Percent (0.5%) with the Use of the Tax Revenue to be Subject to Annual Audits by an Independent Auditor and a Citizen’s Oversight Committee.

BACKGROUND
Over the last decade, stagnant growth has produced little to no revenue resulting in a disequilibrium between operating costs and revenue. Although our budget has been balanced for the last few years, it is extremely tight with no room for mishaps or for projects that require upgrades. Maintenance of infrastructure has been deferred, worsening the conditions of roads, sidewalks, city parks and city facilities.

Voters in the City have previously approved two tax measures, Measure K and Measure X, (known collectively as the “Gonzales Quality of Life Temporary Tax Measure”) setting the City’s current Temporary Transactions and Use Tax (TUT), as codified in Chapter 3.29 in the Gonzales City Code, at one percent (1%). The 1% TUT, administered as Measure X but accounted for as two separate funds, Measure K and Measure X, each of which receives .5% of all Measure X tax proceeds and is overseen by AGENDA
ITEM
5 Packet Pg. 17
a separate oversight committee, has established a sales tax rate in Gonzales at 8.75%, still one of the lowest tax rates in Monterey County. Since the passage of both tax measures, the City has worked hard to meet all the requirements and expectations set forth by the voters. Assistance in this effort has been provided by the Measure K and Measure X Transaction and Use Tax Advisory Committees which continue to be engaged in representing the community’s preferred tax fund allocations.

Programs and services supported by Measure K include funding of the debt service for the renovation of the community pool, youth services and leadership development, the Community Action Grants Program, senior and adult programming and extended after school and summer camp programs. The Measure X Advisory Subcommittee has recommended, and the Council has approved that a majority of its 0.5% of the TUT tax proceeds be applied towards the Dennis and Janice Caprara Community Center Complex Project (“Project”) costs. Phase I of the long-awaited Project will include a library, Teen Innovation Center, a meeting room and an outdoor amphitheater. It has broken ground and is expected to be completed in December of 2025. The City anticipates that a significant portion of the Measure X funds will continue to be allocated to this Project. Measure X funds have also been used for the project design and construction to date.

Despite prudent spending, without significant additional revenue coming in, there are a number of essential infrastructure and maintenance needs that the City is unable to address in the current annual operating budget. These include the renovation of the Fire Station, which includes a new roof, restrooms and upgrades to the sleeping quarters. The City also needs to invest in new equipment for the Department in order to ensure that it can carry out its mission to provide effective fire protection services. Our public infrastructure is old and outdated; our City roads and streets are in desperate need of repairs. Additional funding would enable the City to address potholes and allow us to deal with uplifted sidewalk and tree problems with more permanent solutions. Similarly, deferred maintenance of City parks could also be addressed with additional revenues Finally, additional funds could be used to ensure that we can keep our current City programming and services active and provide citizens with more enrichment opportunities.

After considering the forgoing and weighing all possible funding and revenue options, the Council directed Staff at their meeting of March 20, 2024, to bring back a resolution and ordinance to consider putting forward a new general one-half percent (0.5%) Transaction and Use Tax (TUT) measure on the November 5, 2024 General Election Ballot.

It is important to understand and realize that Gonzales’s current sales tax rate is one of the lowest in Monterey County. When a purchase is made in any of the surrounding communities, Gonzales residents are already paying a higher tax rate.

The following table compares existing local tax rates from surrounding communities.

City/County Tax Rate %
Greenfield 9.50%
Salinas 9.25
Seaside 9.25
Marina 9.25
Del Rey Oaks 9.25
Soledad 9.25
Sand City 9.25
Monterey 9.25
Carmel-by-the-Sea 9.25
King City 8.75
Gonzales 8.75
Monterey County (unincorporated area) 7.75
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** Going out a little bit further, the sales tax rate in Morgan Hill and San Jose is 9.37%, and Watsonville and Santa Cruz are at 9.75%.

King City has approved a tax measure to be placed on the ballot in November of 2024 that will increase its TUT to 9.25%. Monterey County is also looking at putting a Sales Tax Measure on the November Ballot. Since Gonzales residents are already paying a higher tax rate every time they shop outside the City, staff believes that a one-half percent (0.5%) increase would have minimal if any significant impact on buying habits.

REVIEW & ANALYSIS
Attached for your consideration and approval is Resolution No. 2024-52, with the accompanying:

Ordinance of the Voters of the City of Gonzales Adding Chapter 3.30 to the Gonzales City Code Imposing a New General Transactions and Use Tax Measure to be administered by the State Board of Equalization and Tax Revenues to be Spent for City of Gonzales Services and Programs and Infrastructure, Subject to Annual Audits and Annual Public Expenditure Reports.

Pursuant to Council direction, staff has prepared a “General Purpose” tax measure similar to Measures K and X. This means that if adopted the funds will not be restricted or dedicated to any specific use.

Instead, the tax revenue funds will be used for general purposes approved and directed by the City Council with guidance from a citizen’s advisory committee. This arrangement provides the City with the greatest degree of flexibility to respond to funding needs as they arise in the City. Notwithstanding, Staff is recommending that initially there should be an emphasis on the use of the new tax proceeds for Fire Station and fire equipment needs, road, street and park maintenance projects and to maintain current service and programming. General-purpose taxes only require a majority vote (50%+1 voter) result to pass. Based on existing TUT revenue, it is estimated that the new tax would generate approximately $800,000 a year.

Resolution No. 2024-52 reflects the legal language necessary to set a measure on the ballot for the State General Election on November 5, 2024 that will increase the existing TUT by the addition of a new onehalf percent (0.5%) tax. This would set the City’s total sales tax rate to 9.25%, bringing us in line with almost every city in Monterey County. The tax would remain in place until extinguished by the voters.

Based on the fact that all the surrounding communities already have a high sales tax rate, it finds that the proposed increase in sales tax will not create a significant financial burden.

Revenues will grow as the City successfully improves the community and attracts new business and jobs.

It is important to adopt a means of catching new tax revenue before significant planned residential development takes place in the City. It is equally important to capture this revenue before it is taken by the State or some other County entity.

If passed, the sales tax would generate an additional ½ cent for every dollar spent. For a $50 dollar dinner at a restaurant, it would add 25 cents more to the cost of the dinner. For a $100 purchase, it would add 50 cents more to the purchase.

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: Should the proposed one-half percent (0.5%) tax increase pass, it would provide some of the funding needed to retrofit the Fire Station, purchase necessary equipment, maintain and enhance City parks, roads and streets and sustain current services and programs.

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

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes ____No __NA
• Housing X Yes ____No NA
• Recreation X Yes ____No NA
• Environment X Yes ____No __NA
• Education X Yes ____No NA
Explain: Please see above.

ALTERNATIVES
Your Council has the following alternatives:
(a) Do not put the Measure on the Ballot in November, which is not recommended as existing revenue has not kept up with costs and City needs continue to rise. (b) Wait until a later date to put the Sales Tax Measure out for a vote.

BUDGET IMPACT
Putting the Ballot Measure on the General Election reduces the cost of the election for the City. The total cost of the election will be approximately $7-$10 per registered voter.

On the revenue side, if the Sales Tax was to pass by Gonzales voters it would initially generate approximately $800,000 annually.

CONCLUSION
It is recommended that the City Council consider adoption of Resolution No. 2024-52, A Resolution of the City Council of the City of Gonzales Submitting to the Voters at the General Municipal Election to be Consolidated with the Statewide General Election Held on Tuesday, November 5, 2024, A Measure Increasing the City’s Transactions and Use Tax by One-Half Percent (0.5%) with the Use of the Tax Revenue to be Subject to Annual Audits by an Independent Auditor and a Citizen’s Oversight Committee.

Attachments:

1. Resolution No. 2024-52 with Exhibht A (Ordinance 2024-145) Packet Pg. 20
RESOLUTION NO. 2024-52

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

SUBMITTING TO THE VOTERS AT THE GENERAL MUNICIPAL ELECTION TO

BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 5, 2024, A MEASURE INCREASING THE CITY’S TRANSACTIONS AND USE TAX RATE BY ONE-HALF PERCENT (0.5%) WITH THE

USE OF THE TAX REVENUE TO BE SUBJECT TO ANNUAL AUDITS BY AN INDEPENDENT AUDITOR AND A CITIZENS’ OVERSIGHT COMMITTEE WHEREAS, over the last decade, stagnant growth in the City has produced little to no revenue resulting in a disequilibrium between operating costs and revenue creating an extremely tight budget with no room for unexpected and unbudgeted expenditures or for projects that require upgrades. Maintenance of infrastructure has been deferred, worsening the condition of city facilities, roads, sidewalks, and city parks; and
WHEREAS, the reallocation of existing funds to meet these outstanding needs will have an adverse impact on other projects and programs. Absent a new funding source, the City will have to reset priorities which will result in continued deterioration of public infrastructure, potential loss of qualified staff and have an adverse impact on current programs and services; and
WHEREAS, the voters of the City of Gonzales have previously approved two tax measures, Measure K and Measure X, (known collectively as the “Gonzales Quality of Life Temporary Tax Measure”) setting the City’s current Temporary Transactions and Use Tax (TUT), as codified in Chapter 3.29 in the Gonzales City Code, at one percent (1%). The 1% TUT, administered as Measure X but accounted for as two separate funds, Measure K and Measure X, each of which receives 0.5% of all Measure X tax proceeds and is overseen by a separate oversight committee, has established a sales tax rate in Gonzales at 8.75%, one of the lowest tax rates in Monterey County. With guidance provided by Measure K and Measure X TUT Advisory Committees, TUT revenues in Gonzales have been used for a variety of projects, including but not limited to funding debt service for the Community Pool, award-winning youth services and leadership programs, park improvements (restrooms, tot- lot, playground equipment), Community Center Complex Project costs, grant programs, and senior programs; and
WHEREAS, the City Council has considered the placement of a question on the ballot to seek voter approval of an amendment to the City’s Transactions and Use Tax, as authorized by Revenue and Taxation Code Section 7285.9; and
WHEREAS, after due consideration, the City Council of the City of Gonzales desires to submit to the voters at the November 5, 2024 consolidated general and municipal election a question relating to the imposition of a one-half percent (0.5%) increase to the City’s existing Transactions and Use Tax rate, for a new total tax amount of one percent (1.5%), for General Fund purposes for projects, equipment, and services that are currently unfunded or underfunded, pursuant to California Constitution Article XIIIC, Section 2, Government Code Section 53724, Elections Code Section 9222, and the Gonzales City Code; and Packet Pg. 21
WHEREAS, the tax measure to be submitted to the voters, if approved, would be imposed on retail transactions involving personal property. The new additional one-half percent (0.5%) tax will create a cumulative Transactions and Use Tax of one and one-half percent (1.5%) of the value of personal property in the City through 2044 at which time the tax will drop to onehalf percent (0.5%) if the Measure X Tax is not extended; the tax revenue would be collected by the California Department of Tax and Fee Administration and remitted to the City; the revenues would be audited annually by an independent auditor and a public expenditure report would be issued annually regarding the use of the revenues from the tax; use of the tax revenues would be subject to review and recommendation of a Transaction and Use Tax Advisory Committee; the new revenues would be devoted to the City of Gonzales and its residents and cannot be taken by the State or other local entities; and the tax shall be approved if the measure receives at least a majority of affirmative votes; and
WHEREAS, without additional General Fund revenue sources, the City of Gonzales will not be able to maintain or enhance public infrastructure and improvements, purchase equipment vital to public safety services, and provide other services desired by its residents without having to minimize current operations and eliminate or reduce existing services; and WHEREAS, the proposed Gonzales 2024 Transactions and Use Tax, established at onehalf percent (0.5%) on retail transactions involving personal property in the City, would generate approximately $800,000 per year, which should allow the City to pursue various infrastructure improvement projects, purchase needed equipment and maintain various services and programs; and
WHEREAS, the new one-half percent (0.5%) Transactions and Use Tax is proposed to be collected until otherwise ended by the voters; and
WHEREAS, the City Council previously passed Resolution 2024-39 on June 17, 2024, calling a general municipal election for the purpose of electing the mayor at-large and one (1) council member from new District 2; requesting that the general municipal election be consolidated with the Statewide general election to be held on Tuesday, November 5, 2024; and requesting that the Board of Supervisors of the County of Monterey direct the Registrar of Voters/Election Department to take any and all necessary steps to conduct the consolidated election; and under provisions of the laws relating to cities in the State of California, a General Municipal Election shall be held on November 5, 2024, for the election of the aforesaid municipal officers; and
WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a city for the submission of any question, proposition or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear on the same ballot as that provided for that statewide election, the city shall, at least eighty-eight (88) days prior to the date of the election, file with the board of supervisors, with a copy to the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot, and upon such request, the board of supervisors may order the consolidation; and
Packet Pg. 22
WHEREAS, in addition to the consolidation of the election of municipal officers with the Statewide general election requested by the City in Resolution 2024-39, the City Council now also desires to consolidate the new Gonzales 2024 Transactions and Use Tax Ballot Measure with the Statewide general election to be held on November 5, 2024; and WHEREAS, based on all of the information presented at the August 5, 2024 regular city council meeting, both written and oral, including the staff report and other relevant materials, the City Council finds that under California Environmental Quality Act (“CEQA”) Guidelines Sections 15060 (c)(2) and 15378, subdivisions (2) and (4) of subdivision (b), the proposed tax does not constitute a project under CEQA and therefore review under CEQA is not required.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GONZALES does hereby resolve, declare, determine and order as follows:

SECTION I. RECITALS AND FINDINGS.

1. All of the foregoing recitals are true and correct and are incorporated herein by reference.

2. The City of Gonzales continues to strive to maintain core city operations and infrastructure, maintain a variety of proactive business initiatives, maintain its award winning G3 recycling, sustainable and environmental program, civic engagement efforts, advancing the Dennis and Janice Caprara Community Center Complex, nurturing its youth engagement and leadership programs, and continue its leadership role in regional efforts on economic development, storm water and solid waste issues, and housing, all subject to an extremely limited budget.

3. Notwithstanding the foregoing accomplishments, the City’s sensitive financial condition has been exacerbated by the lack of growth resulting in stagnant property taxes, sales tax, and the limited and competitive availability of grant proceeds while the cost to do business continues to rise. Additionally, the COVID-19 Pandemic, which caused a sharp rise in the price of a variety of materials, goods and services, continues to have a negative impact on City finances.

4. In the circumstances set forth above, where revenues do not keep pace with operations and maintenance costs, the City is going to be forced to consider budget cuts resulting in the reduction and/or elimination of City services and deferral of essential maintenance of City infrastructure and improvements.

5. In response to the need for additional revenues, the City has previously adopted two tax measures, Measure K and Measure X, (known collectively as the “Gonzales Quality of Life Temporary Tax Measure”) setting the rate of the City’s current Temporary Transactions and Use Tax ( or “TUT”), as codified in Chapter 3.29 in the Gonzales City Code, at one percent (1%).

The 1% TUT, administered as Measure X but accounted for as two separate funds, Measure K and Measure X, each of which receives one half percent (0.5%) of all Measure X tax proceeds and is overseen by a separate oversight committee, has established a sales tax rate in Gonzales at

8.75%, one of the lowest tax rates in Monterey County. The tax revenues are restricted to use exclusively by the City of Gonzales and its residents and cannot be taken by the state for other purposes. The Gonzales Transactions and Use Tax currently generates approximately $1,600,000 annually in tax revenues.

Packet Pg. 23

6. Since the passage of the existing Transactions and Use Tax, the City has met all criteria for use of the tax revenues adopted by the voters. A prime example is the establishment of the Measure K and Measure X Transactions and Use Tax Advisory Committees, which since their inception, have been very engaged and proactive, and which have effectively represented the community in expressing preferred uses for Transactions and Use Tax revenues. Projects, programs and services supported by Measure K have included funding of the debt service for the renovation of the community pool, youth services and leadership development, the Community Action Grants Program, senior and adult programming and extended after school and summer camp programs, and the purchase of park and playground equipment. The Measure X Advisory Subcommittee has recommended, and the Council has approved that a majority of its 0.5% of the TUT tax proceeds be applied towards the Dennis and Janice Caprara Community Center Complex Project (“Project”) costs. Phase I of the long-awaited Project, which will include a library, Teen Innovation Center, a meeting room and an outdoor amphitheater has broken ground and has an estimated completion date of December 2025. The City anticipates that a significant portion of the Measure X funds will continue to be allocated to the Project. Measure X funds have also been used for the project design and construction to date.

7. Despite the City’s prudent and fiscally responsible efforts, as well as the collection of the aforesaid Transactions and Use Tax, a number of critical projects and areas of operation in the City are currently unfunded and have had to be deferred. More specifically, the City Council has determined that a variety of infrastructure issues that need to be addressed, such as rehabilitation of the Fire House and its restrooms and sleeping facilities, city streets, roads and sidewalks, and city parks have had to be deferred due to significant costs. Additionally, the purchase of expensive City equipment, such as fire trucks and related fire-fighting equipment are all out of the City’s reach at the current time. Each time the City experiences expenditures related to the unexpected and immediate need to repair damaged infrastructure of equipment, the City’s budget suffers and requires a reallocation of funds, all to the detriment of ongoing operations and planned maintenance. It also results in little if any opportunity to address projects and needed expenditures that have already been deferred.

8. The City Council has determined that in order to raise additional revenues for the aforesaid infrastructure needs, equipment, and projects, the City Council should consider increasing the existing Transaction and Use Tax rate by one-half percent (0.5%) for a consolidated tax rate of one and one-half percent (1.5%).

9. It is estimated that a one-half percent (0.5%) increase in the City’s Transaction and Use Tax rate would generate approximately $800,000 per year. These increased funds would allow the City to maintain the current programs and services and address unmet infrastructure and improvement maintenance and equipment needs.

10. The City anticipates that the impact of a one-half percent (0.5%) increase to the City’s Transaction and Use Tax rate will not create a significant financial burden on the City’s heavy sales tax producing businesses since they are already paying sales tax in other cities and regions with a higher sales tax.

Packet Pg. 24
SECTION II. CALL FOR ELECTION. PLACEMENT OF MEASURE ON THE BALLOT. Pursuant to California Constitution Article XIIIC, Section 2; Government Code Section 53724; Elections Code Section 9222 and Sections 10400 et seq.; and the Gonzales City Code, the City Council of the City of Gonzales hereby calls an election at which it shall submit to the qualified voters of the City, a question that, if approved, would adopt a one-half percent (0.5%) increase to the City’s existing Transactions and Use Tax rate, for a total tax of one and one-half percent (1.5%), as authorized by Revenue and Taxation Code Section 7285.9. This measure shall be designated by letter by the Monterey County Elections Department. Pursuant to Elections Code Section 10400 et seq., the election for this measure shall be consolidated with the established previously consolidated election to be conducted on November 5, 2024.

SECTION III. PROPOSED ORDINANCE. The ordinance authorizing the general tax to be approved by the voters pursuant to Section II is as set forth in Exhibit A hereto. The City Council hereby approves the ordinance, the form thereof, and its submission to the voters of the City at the November 5, 2024, consolidated Statewide election, as required by Revenue and Taxation Code Section 7285.9, subject to the approval of a majority of the voters voting on the measure at the election called by the adoption of this resolution. The entire text of the ordinance attached hereto as Exhibit A shall be printed in the voter information portion of the sample ballot. The ordinance specifies that the rate of the current Transactions and Use Tax, set at one percent (1.0%), shall be increased by a new one-half percent (0.5%) transactions tax, for a new total Transactions and Use Tax rate of one and one-half percent (1.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City, and from one percent (1.0%) to one and one-half percent (1.5%) of the sales price of tangible personal property stored, used or otherwise consumed in the City. The California Department of Tax and Fee Administration shall collect the tax from retailers subject to the tax and remit the funds to the City. All tax revenues collected by application of the new one-half percent (0.5%) Transaction and Use Tax will be subject to independent audit and subject to the oversight of a new citizen’s Transactions and Use Tax Advisory Committee. The new one-half percent (0.5%) Transactions and Use Tax would be collected until ended by the voters. The new Transactions and Use Tax rate of one and one-half percent (1.5%) would remain in place through 2044 at which time the tax will drop to one-half percent (0.5%) if the Measure X Tax is not extended.

SECTION IV. BALLOT LANGUAGE. The official ballot to be used at said election shall conform to the laws of the State of California with relation thereto. The proposed Transactions and Use Tax shall be submitted to the voters on the ballot at the General Municipal Election to be held and consolidated with the Statewide general election on Tuesday, November 5, 2024, in the form of the following question:

City of Gonzales 2024 Transactions and Use Tax. Shall a measure establishing a new Gonzales sales tax that increases the total tax rate from 1.0% to 1.5% used for general government purposes such as maintenance of infrastructure and improvements (Fire House, streets, roads and sidewalks, parks) adding $800,000 in revenues annually, collected on an ongoing basis until extinguished and requiring all funds to stay local with independent citizen’s committee oversight and annual audits, be adopted?
The words “Yes” and “No” shall be printed on the ballots so the qualified electors may express their choice.

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This measure shall be designated by letter by the Monterey County Elections Department.

SECTION V. IMPARTIAL ANALYSIS AND SUBMISSION OF BALLOT
ARGUMENTS. The City Attorney is hereby authorized to prepare an impartial analysis of the proposed measure. The Attorney’s impartial analysis of the ballot measure shall not exceed five hundred (500) words in length showing the effect of the measure on the existing law and the operation of the measure. The City Attorney shall transmit such impartial analysis to the City Clerk by the close of business on August 15, 2024. Written arguments in favor or opposed to the measure may be prepared by the City Council, any member or members of the City Council so authorized by Council action, or any individual voter who is eligible to vote on the measure, or any bona fide association of citizens, or any combination of voters and associations. By adoption of this resolution, the City Manager and Staff are hereby authorized to prepare and file a written argument in favor of the proposed measure not to exceed three hundred (300) words on behalf of the City Council. All arguments must be submitted to the City Clerk by 5:00 p.m. on August 15, 2024. No argument shall exceed three hundred (300) words in length. A ballot argument may not be accepted unless accompanied by the printed name and signature or printed names and signatures of the author or authors submitting it, or if submitted on behalf of an organization, the name of the organization and the printed name and signature of at least one of its principal officers who is the author of the argument. No more than five signatures shall appear on any argument. If more than one argument is submitted for or against the measure, the City Clerk shall select the argument for printing and distribution in accordance with the provisions of Elections Code Section 9287. Pursuant to Section 9285 of the California Elections Code, when the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. Rebuttal arguments may thereafter be prepared in a length not exceeding two hundred and fifty (250) words and shall be filed with the City Clerk by no later than 5:00 p.m. on August 22, 2024. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

SECTION VI. CEQA. The City Council finds that under CEQA Guidelines 15060(c) (2) and 15378, subdivisions (2) and (4) of subdivision (b), this tax does not constitute a project under CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment, and therefore, review under CEQA is not required.

SECTION VII. REQUEST TO CONSOLIDATE AND CANVAS RETURNS. The City requests and authorizes the Registrar of Voters to consolidate this election with the established election on November 5, 2024 for the ease and convenience of the registered voters and to take advantage of any cost savings possible by such consolidation. The election on the measure set forth in Section IV shall be held and conducted, the votes canvassed and the returns made, and the results ascertained and determined as provided for herein. The election shall be held in accordance with the Elections Code of the State of California. The Board of Supervisors of the County of Monterey is authorized to canvas the returns of that election with respect to the votes cast in the City of Gonzales and to certify the results to the City Council of the City of Gonzales. At the next regular meeting of the City Council occurring after the returns of the election have been canvassed and the certification of the results to the City Council, the City Packet Pg. 26
Council shall cause to be entered in its minutes a statement of the results of the election. The City Clerk may request the assistance of the County of Monterey Elections Department in regard to said Consolidated Statewide Primary Election, as the City Clerk deems necessary, and in recognition of the fact that additional costs will be incurred by the County in providing assistance, the City agrees that it shall pay the incurred cost of such assistance pursuant to the “Service Agreement for the Provisions of Election Services between the City of Gonzales and the Monterey County Registrar of Voters,” previously approved by the Council. The City Manager is hereby authorized to enter into or modify any written agreement for such services with the County of Monterey Elections Department.

SECTION VIII. PUBLICATION OF MEASURE. In accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code, the City Clerk is hereby authorized and directed to cause notice of the measure to be published once in the Salinas Valley Tribune, a weekly newspaper of general circulation, printed, published, and circulated in the City of Gonzales and hereby designated for that purpose by the Council of Gonzales, at least one time not later than one week before the election.

SECTION IX. EFFECTIVE DATE. This Resolution shall become effective immediately upon its passage and forthwith entered upon the minutes of this Council and kept and maintained by the City Clerk of the City of Gonzales.

SECTION X. The City Clerk is hereby authorized and directed to certify the due adoption of this Resolution and to transmit a copy hereof so certified to the Board of Supervisors and the Registrar of Voters of Monterey County.

SECTION XI. The City Clerk and City Attorney are authorized to make any typographical, clerical, non-substantive corrections to this resolution and to the ballot measure as may be deemed necessary by the Monterey County Clerk/Registrar of Voters.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 5th day of August 2024 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
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ORDINANCE NO. 2024-145

AN ORDINANCE OF THE VOTERS OF THE CITY OF GONZALES
ADDING CHAPTER 3.30 TO THE GONZALES CITY CODE IMPOSING A NEW

GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE

CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION AND TAX

REVENUES TO BE SPENT FOR CITY OF GONZALES SERVICES, PROGRAMS AND

INFRASTRUCTURE, SUBJECT TO ANNUAL AUDITS AND ANNUAL PUBLIC

EXPENDITURE REPORTS
BE IT ORDAINED BY THE VOTERS OF THE CITY OF GONZALES:

SECTION 1. FINDINGS. The voters of the City of Gonzales hereby find as follows:
a. The City of Gonzales continues to address ongoing challenges to its efforts to maintain infrastructure and provide a range of services to its residents, including programs and activities that serve public needs but that have limited funding. b. Over the last decade, stagnant growth has produced little to no revenue resulting in a disequilibrium between operating costs and revenue creating an extremely tight budget with no room for unexpected and unbudgeted expenditures or for projects that require upgrades. Maintenance of infrastructure has been deferred, worsening the conditions of city facilities, roads, sidewalks, and City parks.
c. The City’s financial condition continues to be adversely impacted by sluggish growth in property taxes, sales tax, and the limited and competitive availability of grant proceeds.

In the current financial environment, tax revenues and other sources of City income are not keeping pace with inflation, City expenditures and needs. The cost of supplies and equipment has increased dramatically in recent years due to supply chain constraints, general inflation, and strong demand for consumer goods. The Producer Price Index, the metric reflecting the price that manufacturers charge dealers and distributors for their products, indicates that prices for machinery and equipment increased by 19% between January of 2020 and March of 2023. There was also a significant increase in such costs during the Covid 19 Pandemic, and although the impacts of the Pandemic are largely considered to be under control in the U.S., COVID’s negative impacts on the economy remain unabated. Despite a fiscally conservative approach to budgeting, all of the foregoing hamper the City’s ability to address capital projects, programs and services required and expected by the Community.
d. Because of changes in State law, particularly the approval of Propositions 62 and 218, the City has very few means available for increasing General Fund revenue. e. The voters of the City of Gonzales have previously approved two tax measures, Measure K and Measure X, (known collectively as the “Gonzales Quality of Life Temporary Tax Measure”) setting the rate of the City’s current Temporary Transactions and Use Tax (or “TUT”), as codified in Chapter 3.29 in the Gonzales City Code, at one percent (1.0%).

The 1.0% TUT, administered as Measure X but accounted for as two separate funds,

EXHIBIT A
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Measure K and Measure X, each of which receives one-half percent (0.5%) of all Measure X tax proceeds and is overseen by a separate oversight committee, has established a sales tax rate in Gonzales at 8.75%, one of the lowest tax rates in Monterey County. With guidance provided by Measure K and Measure X TUT Advisory Committees, TUT revenues in Gonzales have been used for a variety of projects, including but not limited to funding debt service for the Community Pool, award-winning youth services and leadership programs, park improvements (restrooms, tot lot, playground equipment), Dennis and Janice Caprara Community Center Complex Project costs, grant programs, senior programs, and internet accessibility for all citizens. The Gonzales Transaction and Use Tax Measure currently generates approximately $1,600,000 annually in tax revenues.
f. Despite the City’s prudent spending and cost savings efforts, as well as the collection of the aforesaid Transaction and Use Tax, a number of infrastructure projects and matters important to the Community, such as maintenance of the Fire House and its restroom and sleeping facilities, purchase of fire equipment, street and road maintenance, maintenance of public parks and open spaces, and programming for all ages are currently not funded but are critical to the overall health and well-being of the community. Reallocation of existing funds to meet these needs will have an adverse impact on existing projects and programs and projects and programs that are currently being funded by the City’s existing one percent (1.0%) Transactions and Use Tax. Absent a new funding source, the City will have to reset priorities which may result in continued deterioration of public infrastructure, potential reduction of qualified staff, and the inability to continue current programs and services.
g. Pursuant to California Revenue and Taxation Code Sections 7285.9 and 7290, the City of Gonzales has the authority to levy a Transactions and Use Tax for unrestricted general revenue purposes. Pursuant to Part 6.1 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, and Part 1.7 of Division 2, the City may seek voter approval for a general transaction and use tax.
h. In light of the foregoing, the City Council is proposing to increase the rate of the existing Transactions and Use Tax by imposition of a new one-half percent (0.5%) Transactions and Use Tax to be approved by the voters. Revenues from the new Transactions and Use Tax shall be available for unrestricted general revenues purposes, although a preference will be shown for the use of said revenues for Fire Department needs, streets and road repair and maintenance, City park maintenance, and youth and senior programs and services.
i. The City desires to raise revenue by transmitting this measure to the voters in an effort to generate revenue to meet service needs and desires in the community referenced in subparagraph f.
j. The City Council has proposed a City Code amendment that will increase the existing Transactions and Use Tax in Gonzales by establishing a new one-half percent (0.5%) Transactions and Use Tax that when added to the existing one percent (1.0%) Transaction Packet Pg. 29

and Use Tax will result in a total one and one-half percent (1.5%) Transition and Use Tax rate in the City.
k. Revenues generated by the proposed ordinance amendment would provide the City with greater financial flexibility to maintain public infrastructure, such as the Fire house, city streets and roads, and parks, and provide a range of services to its residents.

SECTION 2. AMENDMENT TO TITLE 3-REVENUE AND FINANCE OF THE GONZALES CITY CODE. Upon the approval of a majority of the voters in the City of Gonzales at a consolidated general election to be held on November 5, 2024, new “Chapter 3.30 - 2024 Transactions and Use Tax” shall be added to Title 3- Revenue and Finance of the Gonzales City Code and shall read as follows:
“3.30.010 Title.

This ordinance codified in this Chapter shall be known as the “Gonzales 2024 Transactions and Use Tax Measure.” This ordinance shall be applicable in the incorporated territory of the City.

3.30.020 Operative date.
“Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.

3.30.030 Purpose.

The City Council declares that the ordinance codified in this chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division Packet Pg. 30

2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

3.30.040 Contract with State.

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

3.30.050 Transactions tax rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-half percent (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

3.30.060 Place of sale.

For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

3.30.070 Use tax rate.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-half percent (0.5%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

3.30.080 Adoption of provisions of State law.

Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

3.30.090 Limitations on adoption of State law and collection of use taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

Packet Pg. 31

A. Wherever the State of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this city or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in the state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.”

3.30.100 Permit not required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.

3.30.110 Exemptions and exclusions.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and Packet Pg. 32

county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the city which is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the city shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this city of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

Packet Pg. 33

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer.

7. “A retailer engaged in business in the city” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

3.30.120 Amendments
All amendments subsequent to the effective date of this ordinance to Part I of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments Packet Pg. 34

to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. The foregoing amendments shall not require voter approval.

The following amendments to this ordinance must be approved by the voters of the City of Gonzales: increasing the tax rate or revising the methodology for calculating the tax such that a tax increase would result; or imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of the preceding paragraph).

The City Council may otherwise amend this ordinance without submitting the amendment to voters for approval.

3.30.130 Enjoining collection forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3.30.140 Annual audits, expenditure report and oversight committee.

Annually, the City retains an independent auditor to conduct an audit of and provide audited financial statements for all of the City’s financial activities. The auditor shall include an accounting of the revenue received from the tax and expenditures thereof in the audited financial statements. The auditor’s report shall be presented to the council at a public meeting and made available to the public. The City Manager and City Finance Director shall annually prepare and present to the council and the public a report in conjunction with the budget that reviews the status and performance of the programs and services funded wholly or partially with proceeds of the tax. Additionally, the Mayor and each member of the City Council shall each annually appoint one City resident to serve on an oversight committee for the revenue that the City receives from the tax enacted by this article and to recommend the use thereof. The City Manager shall provide staff for the committee, and the Finance Director shall provide all relevant data regarding revenue from the tax and expenditure thereof.

3.30.150 Refunds and credits; suits and legal proceedings.

A.Refunds of and credits for any tax paid pursuant to this article may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.

B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this article may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the California Department of Tax and Fee Administration to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount.

3.30.160 Effect of tax.

Packet Pg. 35

The tax established herein is meant to be imposed and collected in addition to any existing tax established by the City and is not meant to supersede or otherwise impact the tax established in Chapters 3.28 and/or 3.29 of this Code. This tax will remain in effect until otherwise ended by the voters.

SECTION 3. USE OF TAX REVENUE. The tax approved by this ordinance is a general tax.

The City may use the revenue from the tax for any general governmental purpose, including without limitation, Fire Department infrastructure maintenance and equipment needs, streets and road maintenance, the maintenance and enhancement of our City parks and open space, and program and service needs. The revenue from the tax shall only be used for purposes maintenance, equipment, services and programs that benefit the residents of the City.

SECTION 4. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The voters of the City of Gonzales hereby declare that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision.

SECTION 5. CODIFICATION. Upon adoption of this ordinance pursuant to the voter approval referenced in Section 2, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Gonzales City Code.

SECTION 6. EFFECTIVE DATE. If this ordinance is approved by a majority of the voters voting on the issue at the November 5, 2024, election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the Council declares the results of the election, and the tax shall become operative on the “operative date,” as defined in Section 2 of this ordinance.

SECTION 7. PUBLICATION. The Clerk of the City of Gonzales is hereby directed to cause the following summary of the ordinance to be published by one (1) insertion in The Salinas Valley Tribune, a newspaper of general circulation published and circulated in the City of Gonzales:

Contingent upon majority voter approval, this ordinance adopts a new one-half percent (0.5%) Transactions and Use Tax (sales tax) on the sale or consumption of tangible personal property within the City of Gonzales. The new Transactions and Use Tax rate in Gonzales would be one and one-half percent (1.5%). The ordinance requires independent annual audits, annual public expenditure reports and establishes a citizens’ oversight committee. The tax revenues will only be used for general governmental purposes, with a preference for local infrastructure and improvement maintenance, such as at the City’s Fire Station and on street, roads and City parks, the purchase of fire equipment, and programs and services for the City of Gonzales and its residents.

Once approved, the new tax would remain in place until extinguished by the voters.

APPROVED by the following vote of the Voters of the City of Gonzales on Packet Pg. 36

November 5, 2024.

ADOPTED by Declaration of the vote by the City Council of the City of Gonzales on ____, 2024:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 37