Agenda packet — Gonzales City Council, November 18, 2024

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

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A G E N D A

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
CITY COUNCIL CHAMBERS – 117 FOURTH STREET
GONZALES, CA 93926
MONDAY, NOVEMBER 18, 2024
5:30 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

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

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

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

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

2. The City Council will recess to closed session pursuant to Government Code Section 54956.9(d)(2) to confer with its attorney – exposure to potential litigation.

PRESENTATIONS

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

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BUSINESS FROM THE PUBLIC

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

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

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

6. Approve City Accounts Payable Warrants #51034-51112

7. City Manager’s Report

8. Community Development Department Activity Report

9. Community Engagement & Recreation Departments Activity Report

10. Fire Department Activity Report

11. Police Department Activity Report

12. Public Works/City Engineer Department Activity Report

13. Consider Approval of Resolution No. 2024-68, A Resolution of the City Council of the City of Gonzales Adopting the City Council Meetings Schedule for 2025

14. Consider Approval of Resolution No. 2024-69, A Resolution of the Council of the City of Gonzales Approving Eleven (11) Community Action Grant Applications for FY 2024-2025 with Funding Allocations to Implement a Variety of Qualified Civic-Minded Community Activities

15. Consider Approval of a Grant from the Nancy Buck Ransom Foundation for the Kid Power Program in the Amount of $15,000 and Adjust the FY 2024-2025 Budget to Reflect the Adjusted Revenue

REGULAR AGENDA

16. Consider Approval of Resolution No. 2024-67, A Resolution of the City Council of the City of Gonzales Approving a Conveyance Agreement and an Installment Purchase Contract, Making Certain Determinations Relating Thereto; and Authorizing Certain Other Actions in Connection Therewith
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2024-67

17. Presentation on the Final Draft Salinas Valley Safe Routes to Schools Plan a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Provide any changes or adjustments

GONZALES YOUTH COUNCIL UPDATES

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

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BUSINESS FROM CITY COUNCIL

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

20. Oral Communications

BUSINESS FROM CITY MANAGER

21. Oral Communications

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

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

I, Mary Villegas, Deputy City Clerk of the City of Gonzales, do hereby certify that a copy of the foregoing Joint City Council/Successor Agency Regular Meeting Agenda was posted at City Hall, Council Chambers, and on the City’s website by Thursday, November 14, 2024, at 5:00 p.m. 11/14/24
Mary Villegas Date

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MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
MONDAY, NOVEMBER 4, 2024
6:00 P.M.

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

PLEDGE OF ALLEGIANCE
Council Member Worthy led the flag salute.

1. ROLL CALL
Attendee Name Title Status
Jose L. Rios Mayor/Chair Present - Left at 6:32pm
Scott Funk Mayor Pro Tem/Vice Chair Present
Liz Silva Council/Agency Member Present
Lorraine Worthy Council/Agency Member Present
Maria Orozco Council/Agency Member Present

YOUTH COMMISSIONERS
Valeria Cardenas and Emily Mendez.

STAFF PRESENT
City Manager Carmen Gil, 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 Chief Keith Wise.
* Successor Agency Item
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Minutes Acceptance: Minutes of Nov 4, 2024 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
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PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

PRESENTATIONS

2. Introduction of Gonzales Youth Council Members
Youth Council Advisor Olmedo-Albor introduced the Youth Council Members for the 2024-2025 school year. She acknowledged this marked the 10th year of the founding of the Gonzales Youth Council.

Commissioners Cardenas and Mendez reintroduced themselves and mentioned everyone on the Youth Council who were excited and passionate about their big whys, and this was the first year an 8th Grader joined the Council in a while.

The following members introduced themselves and elaborated on what they will be working on this year: Cristina Garcia, Suiry Palomares, Denia Rosales, Orlando Rodriguez Perez, Ricardo Rodriguez Perez, Isabella Camargo, and Leo Asher.

Mayor Rios invited the GYC members to stay as this would be a brief meeting.

BUSINESS FROM THE PUBLIC

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

Henry Martinez Jr. said he wanted to update the Council on the people that went to court regarding the fireworks with no fines but just years of probation and community service hours.

He also commented on the number of officers picking up his dad from the front of his house and his house camera getting the whole damn thing; incident happening at the Police Station; calling the City Manager regarding his complaint’s status; getting calls from the Police Department about some papers and his dad getting arrested. He said so what and he was here now and dared them to come and pick him up because shit he had nothing better to do and he got his dad out within minutes.

Mayor Rios asked Mr. Martinez to watch his language.

Mr. Martinez Jr. continued talking about expecting things done with his complaint and staff failed on their part. He laughed and said he made a joke of the last Chief and would make a joke of the current one too. He asked the City do something before he started doing things because it was not going to be fun.

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Minutes Acceptance: Minutes of Nov 4, 2024 6:00 PM (CONSENT AGENDA)

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April Martinez talked about the time when they arrested Henry Sr. in front of her property and the medication he needed to take; the City saying they didn’t receive her complaint; making another complaint because the City was hiding something. She told them if they messed with her family she was going to go above the Police Chief because something needed to be done about the Officers not doing their job. She added the Firefighters were doing way better than the Police Department and deserved new fire trucks.

Henry Martinez Sr. commented about getting picked up last Saturday and needing his medical bag; being involved in the 4th of July incident as a reporter for Gonzales real news where he was recording the incident to send to them to post on their website; turning off his phone after getting hit by an officer twice and being told he interfered with the investigation; told three Council Members were responsible for the Officers attitudes and promoting them after he filed complaints; elaborated on the times he got tickets; and said he didn’t want officers whom they filed complaints against to respond to their house.

Roman Barba commented about dead trees by the water tank; the City having 10 days to respond under the Brown Act to a person who had a written complaint to the City; and being a violation if the Police Department was not following up on complaint forms.

Henry Martinez III congratulated his friend for helping him during football practice, and talked about dead lifts, what he did when he was living in Paso; witnessing Saturday night and Officers guiding him with weapons and batons and threatening him; the love he had for this place; cleaning up after himself; hanging out with the School’s Principal at the school; roads needing work; bridge needing to be expanded; people driving fast; supporting his family for years; trying to not have high cholesterol; fire department needing new trucks; zones needing to be painted; and life being hard for him but he was trying to go to the army.

Ruben Zurita, Firework Safety Committee, requested to reinstate the committee as soon as possible, and said the City Manager and he haven’t been able to hook up to get the committee going. He talked about having secured funds for additional resources for another drone and another officer being trained.

Mayor Rios asked if there was an issue with the people that were part of that.

Mr. Zurita responded he just needed to get the committee to meet, and it didn’t matter how many members attend even if it was just the Police or Fire Chiefs or City Manager so that his person could come and speak to them and award the money to the City and it would help other Cities as well.

Council Member Worthy asked if the committee members were not available or what was the problem.

City Manager Gil responded there was only three people that were active, and the other two had instructed that they were still interested in being part of the committee, but if the Council wanted to form an official committee, it might be wise to include other people as well so that if one can't attend, we have others. She added as Mr. Zurita mentioned, we have been trying to meet and it was a matter of setting up a date and seeing if there were others who wanted to join the conversation, but staff was setting something up.

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Minutes Acceptance: Minutes of Nov 4, 2024 6:00 PM (CONSENT AGENDA)

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City Attorney Rodriquez wanted to note for the record that the City's Police Department did receive complaints from Henry Martinez, Henry Martinez Jr. and April Martinez, and those complaints now have been completed, the investigations have been completed, and notices regarding the same should be sent out this week.

City Attorney Rodriquez also wanted to note that the Brown Act had nothing to do with the timeline for the completion of an investigation on a complaint that we receive.

CONSENT AGENDA

4. Approve the Joint City Council and Successor Agency - Regular Meeting - October 21, 2024 Minutes

5. Approve City Accounts Payable Warrants #50984-51033

6. Consider Approval of Amendment 1 to Grant Funds and Authorize Execution of the Agreement for the Regional Early Action Planning Grant (REAP 2.0 Program)

7. Consider Approval of Resolution No. 2024-64, A Resolution of the City Council of the City of Gonzales Recognizing Senator Anna M. Caballero’s Dedication and Service to the Community of Gonzales

8. Consider Approval of Resolution No. 2024-65, A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Professional Services Agreement with Earth Systems for Soil and Groundwater Sampling and Related Laboratory Analysis for the Industrial Wastewater Treatment Facility in the Amount of $55,000

9. Consider Approval of Resolution No. 2024-66, A Resolution of the City Council of the City of Gonzales Approving Parking Regulations Dated November 4, 2024, and Rescinding Resolution No. 2018-03

10. Authorize the City Manager to Implement the Newly Revised Utility Assistance Program, and Amend the FY 2024-2025 Budget with a $40,000 Increase to Line Item 300-000-52010 (Water Enterprise Fund) to Accommodate the Program’s Expense
RESULT: APPROVED [UNANIMOUS] Consent Agenda Items 4-10
MOVER: Maria Orozco, Council Member
SECONDER: Liz Silva, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco

REGULAR AGENDA

11. CHISPA Progress Report on the Alta Street Property
City Manager Gil mentioned they were going to table the CHISPA progress report to another date.

At this point, Mayor Rios mentioned that he had another event he needed to be at so he turned things over to Mayor Pro Tem Funk. He wanted to report under the oral communication later on the agenda, regarding the TAMC meeting that there was a closed session item and there was discussion on the Highway 68 corridor proposal on nine intersections with Measure X funds.

Mayor Rios left at 6:32pm.
*
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Minutes Acceptance: Minutes of Nov 4, 2024 6:00 PM (CONSENT AGENDA)

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GONZALES YOUTH COUNCIL UPDATES

12. Oral Communications
Youth Commissioners Cardenas and Mendez reported on the completion of the survey; the Youth Council meeting next Thursday; Red Ribbon Week activities; construction site visit by the GYC; and next meeting where they would be choosing the furniture.

BUSINESS FROM CITY COUNCIL

13. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
This report was given earlier before Mayor Rios left.
b. Mayor Selection Committee
No report.
c. Salinas Valley Recycles
Council Member Silva announced the next meeting November 21st at which time they would probably know of the election’s results which would have an effect on the board. She also reported that they completed the Executive Director’s annual evaluation. d. Measure K Oversight Committee
Council Member Worthy reported on the meeting last week where they approved the Community Action Grants and the item would be coming up at our next Council meeting for approval. Council Member Orozco asked if there was still a vacancy on the committee, and Council Member Worthy responded yes, there were two. City Manager Gil added that we were looking for a youth representative and if anyone was interested, they could let her or Jessica know.

At this point, members of the Martinez Family came into the meeting room screaming and yelling “they’re fighting.”
Mayor Pro Tem Funk asked Mr. Martinez to leave the room as he was being disruptive. He asked for a recess.

14. Oral Communications
The Council meeting resumed.

Council Member Worthy announced they would be honoring our veterans this Wednesday and an Assembly would take place at Fairview Middle School at 1:00pm. and after that, the Veterans, some students and teachers would go over to the American Legion Hall where they would have refreshments.

Council Member Silva forgot to mention under the Salinas Valley Waste Authority reports that on Saturday, November 16th from 11:00am to 2:00pm, the public was invited to Wally's Recycle Festival at the Johnson Canyon landfill Education Center. She reported that they provided 100 goodie bags to trick on Halloween as part of the local American Legion Auxiliary Unit 81, and hoped they could continue this safe event every year. She announced the Gonzales High Football Senior night this Saturday at 5:00pm at the Salinas High Pit due to our stadium not being usable this year. She announced the 14th Annual Veterans Day Parade in Salinas on November 11th at 2:00pm and hoped to see everyone out there in their red, white and blue. She mentioned the Grand Marshal would be John Macias, who grew up here and was a principal at the High School.

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Minutes Acceptance: Minutes of Nov 4, 2024 6:00 PM (CONSENT AGENDA)

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Council Member Orozco thanked staff and the community members who participated in the Trunk or Treat event that was well attended and saw a lot of kids in really cute costumes, and adults as well. She knew there was a lot of work that went into putting these events together, so she thanked City Manager Gil and her staff. She also reported she and Council Member Silva attended a meeting that took place in Chualar regarding the improvements that were being proposed on Hihghway 101, and they had a really great presentation where she was able to talk to a representative from Caltrans mentioning the bridge still needed to be improved and worked on, and he did offer to come and speak to us on where they were with certain projects.

BUSINESS FROM CITY MANAGER

15. Oral Communications
City Manager Gil invited everyone to our first Veterans Day Celebration at 12:00pm at Central Park, where they would be unveiling the banners of our distinguished Veterans. She hoped they would be able to join us, and after that as Council Member Worthy mentioned, the celebration would continue as an assembly at the Fairview Gym, and the refreshments afterwards at the American Legion Hall. She added this would be a day to honor our local Veterans. She also announced staff’s plan to host a joint meeting with the City Council and the Planning Commission on November 12th, which would be a workshop of the Vista Lucia Project; the Holiday Lights Event on December 7th at 4:30pm; and the Parade of Lights on December 14th at 7:00pm.

Police Chief Wise announced the SPCA’s low-cost Vaccination Clinic at the Police Department on November 13th from 9:00am – 2:00pm, and the vaccines were only $25 each for all dogs and puppies; $25 for rabies, $25 for microchips, and no appointment was needed.

Public Works Director Dobbins reported today was the first day of construction of the Industrial Wastewater Pipeline Project and the groundbreaking was set for Friday, November 22nd.

Mayor Pro Tem Funk mentioned we would be observing a moment of silence.

Council Member Orozco asked if we could have a moment of silence in honor of Mr. Roberto Uribe Mata, who was the founder of our Sister City organization, and he passed away last week.

He had been the President for close to 20 years, and they would be having services and a ceremony for him in Mexico. She had asked the Mayor before he left and he agreed. She also said that perhaps we could do a letter of appreciation in his honor.

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.

16. The City Council will recess to Closed Session to meet with its designated representatives regarding labor relations matters pursuant to Government Code Section 54957.6. The Employee Groups are GPOA, GSOA, Painters & Allied Trades District Council 26, International Fire Fighters Local 5388 and Unrepresented Employees.

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Minutes Acceptance: Minutes of Nov 4, 2024 6:00 PM (CONSENT AGENDA)

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The Council conferred with its designated representatives. No other reportable action taken.

ADJOURNMENT
The meeting was adjourned at 7:30pm.

ATTEST:

Mary Villegas, Deputy City Clerk
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Minutes Acceptance: Minutes of Nov 4, 2024 6:00 PM (CONSENT AGENDA) 11/13/2024 9:54:18 AM Page 1 of 7
Check Report
Gonzales, CA By Check Number
Date Range: 11/01/2024 - 11/13/2024
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount Bank Code: POOL-MECHANICS-POOL-MECHANICS BANK
PWDUES CA PROFESSIONAL EMPLOYEES AFL-CIO 11/08/2024 Regular 0.00 285.60 51034 INV0000096 Invoice 11/08/2024 PW UNION DUES 0.00 285.60 SDU CA STATE DISBURSEMENT UNIT 11/08/2024 Regular 0.00 73.84 51035 INV0000076 Invoice 11/08/2024 CHILD/SPOUSAL SUPPORT 0.00 73.84 CALPERS RET CAL PERS RETIREMENT SYSTEM 11/08/2024 Regular 0.00 28,337.62 51036 INV0000086 Invoice 11/08/2024 PERS CITY COUNCIL 0.00 28.00 INV0000087 Invoice 11/08/2024 PERS MISC EMPLOYEE 0.00 1,251.92 INV0000088 Invoice 11/08/2024 PERS SAFETY EMPLOYEE 0.00 2,376.42 INV0000090 Invoice 11/08/2024 PERS PEPRA MISC EMPLOYER 0.00 3,006.68 INV0000091 Invoice 11/08/2024 PERS PEPRA MISC EMPLOYEE 0.00 2,960.83 INV0000092 Invoice 11/08/2024 PERS PEPRA SAFETY EMPLOYER 0.00 5,576.23 INV0000093 Invoice 11/08/2024 PERS PEPRA SAFETY EMPLOYEE 0.00 5,551.00 INV0000094 Invoice 11/08/2024 PERS MISC EMPLOYER 0.00 1,913.65 INV0000095 Invoice 11/08/2024 PERS SAFETY EMPLOYER 0.00 5,672.89 **Void** 11/08/2024 Regular 0.00 0.00 51037
GONZPOA GONZALES POLICE OFFICERS ASSOCIATION 11/08/2024 Regular 0.00 500.00 51038 INV0000089 Invoice 11/08/2024 POA UNION DUES 0.00 500.00 FIREDUES GONZALES PROFESSIONAL FIREFIGHTERS ASSOCIATION 11/08/2024 Regular 0.00 122.40 51039 INV0000078 Invoice 11/08/2024 FIRE UNION DUES 0.00 122.40 PARS JOHN HANCOCK USA 11/08/2024 Regular 0.00 2,744.20 51040 INV0000084 Invoice 11/08/2024 CITIBANK-PARS CONTRACT # 86360 0.00 2,689.58 INV0000085 Invoice 11/08/2024 CITIBANK-PARS CONTRACT # 86390 0.00 54.62 ICMA MISSION SQUARE 11/08/2024 Regular 0.00 5,566.01 51041 INV0000072 Invoice 11/08/2024 457 LOAN PAYMENT 0.00 1,485.02 INV0000081 Invoice 11/08/2024 457 ICMA DEFERRED COMP 0.00 4,080.99 STANDARD STANDARD INSURANCE COMPANY 11/08/2024 Regular 0.00 998.75 51042 INV0000082 Invoice 11/08/2024 BASIC LIFE - EMPLOYER 0.00 998.75 CAUSA WLCC dba CHECK ADVANCE USA.NET 11/08/2024 Regular 0.00 292.78 51043 INV0000097 Invoice 11/08/2024 REVOCABLE WAGE ASSIGNMENT 0.00 292.78 1922 A & G PUMPING, INC. 11/07/2024 Regular 0.00 579.00 51044 24-98730 Invoice 11/08/2024 PORTAPOTTIES CENTENNIAL/FALL FESTIV 0.00 579.00 256 ABAG PUBLICLY OWNED ENERGY RESOURCES 11/07/2024 Regular 0.00 2,118.05 51045 AR036927 Invoice 11/08/2024 Levelized Nat Gas Charges 0.00 2,118.05 108 AIRGAS 11/07/2024 Regular 0.00 212.99 51046
5511405417 Invoice 11/08/2024 Propane Rentals/ Fire Dept 0.00 82.79 5511405571 Invoice 11/08/2024 Cylinder Rentals 0.00 130.20 2 ALL - SAFE ALARMS 11/07/2024 Regular 0.00 460.00 51047 126670 Invoice 11/08/2024 MONTHLY MONITORING 0.00 460.00 2180 ALVAREZ TECHNOLOGY GROUP INC. 11/07/2024 Regular 0.00 1,914.40 51048 37723191 Invoice 11/08/2024 Computer Lease 0.00 1,914.40 3893 ALVAREZ TECHNOLOGY GROUP, INC. 11/07/2024 Regular 0.00 10,984.52 51049 73959 Invoice 11/08/2024 Tylertech Incode Deployment 0.00 3,552.45 74148 Invoice 11/08/2024 MONTHLY BILLING DECEMBER 24 0.00 7,432.07 AGENDA
ITEM
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Attachment: Warrants #51034-51112 (3154 : Approve City Accounts Payable Warrants ##51034-51112) 6 Check Report Date Range: 11/01/2024 - 11/13/2024
11/13/2024 9:54:18 AM Page 2 of 7
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 4285 ANTHONY MENA 11/07/2024 Regular 0.00 506.00 51050
34603-8318987-1 Invoice 11/08/2024 Adult Softball Champion Shirts 506.00 0.00 4192 ARCHIVESOCIAL, INC. Attn: Finance 11/07/2024 Regular 0.00 2,988.00 51051 279059 Invoice 11/08/2024 SOCIAL MEDIA 2,988.00 0.00
3284 ARMANASCO PUBLIC RELATIONS, INC. 11/07/2024 Regular 0.00 5,000.00 51052 12838 Invoice 11/08/2024 PR & GRANT SUPPORT 5,000.00 0.00 4117 AT&T 11/07/2024 Regular 0.00 398.99 51053
10/05/24 Invoice 11/08/2024 CELL LINES 398.99 0.00
86 AT&T 11/07/2024 Regular 0.00 1,322.03 51054
10/23/24 Invoice 11/08/2024 CELL PHONES 1,322.03 0.00
2830 AT&T 11/07/2024 Regular 0.00 95.59 51055
10/20/24-9956 Invoice 11/08/2024 INTERNET 95.59 0.00
3168 AUTOZONE INC. 11/07/2024 Regular 0.00 688.63 51056 05509784169 Credit Memo 11/08/2024 Credit -43.48 0.00
05509784173 Invoice 11/08/2024 Vehicle Repair 43.48 0.00 05509794158 Invoice 11/08/2024 VEHICLE MAINT 277.99 0.00 05509794244 Credit Memo 11/08/2024 VEHICLE MAINT RETURN -32.60 0.00 05509794245 Credit Memo 11/08/2024 VEHICLE MAINT RETURN -47.50 0.00 05509794246 Invoice 11/08/2024 VEHICLE MAINT 32.60 0.00 05509794592 Invoice 11/08/2024 VEHICLE MAINT 146.86 0.00 05509798288 Invoice 11/08/2024 Generator Maintenance 105.61 0.00 05509798522 Invoice 11/08/2024 Generator Maintenance 36.04 0.00 5509776066 Invoice 11/08/2024 Vehicle Repair/Maint. 169.63 0.00 AVOLEM AVOLEM LLC 11/07/2024 Regular 0.00 72,113.00 51057 102824 Invoice 11/08/2024 IW PIPELINE EASEMENT 72,113.00 0.00 3805 BADGER METER INC. 11/07/2024 Regular 0.00 143.93 51058 80176054 Invoice 11/08/2024 HARDWARE FOR METER READING 143.93 0.00 1054 BANUELOS ENTERPRISES, INC. 11/07/2024 Regular 0.00 27.61 51059 190044 Invoice 11/08/2024 GAS 27.61 0.00
770 CARLOS ALBERTO ESQUIVEL JACOB'S MAINTENANCE SERVICES 11/07/2024 Regular 0.00 600.00 51060 101524 Invoice 11/08/2024 Janitorial Services 100.00 0.00 103124 Invoice 11/08/2024 Janitorial Services Vosti Center 400.00 0.00 103124A Invoice 11/08/2024 Janitorial Services Fire 100.00 0.00 4365 CECILIO T. NAVARRO 11/07/2024 Regular 0.00 400.00 51061 11012024 Invoice 11/08/2024 2024 Youth Soccer Referee 400.00 0.00 2825 CODE PUBLISHING COMPANY 11/07/2024 Regular 0.00 147.00 51062 GCI0015873 Invoice 11/08/2024 WEBSITE CODE UPDATES 147.00 0.00 1821 CSK AUTO, INC. 11/07/2024 Regular 0.00 138.69 51063 3566-217643 Invoice 11/08/2024 Vehicle Maint / Repair 138.69 0.00 4063 CYPRESS COAST FORD LINCOLN 11/07/2024 Regular 0.00 394.66 51064 219538 Invoice 11/08/2024 ADMIN CAR REPAIR 55.94 0.00
219539 Invoice 11/08/2024 VEHICLE REPAIRS/MAINT 123.76 0.00 219583 Invoice 11/08/2024 VEHICLE MAINT 214.96 0.00
3028 D & J TIRE SERVICE 11/07/2024 Regular 0.00 210.00 51065 16011 Invoice 11/08/2024 Tire Repair 25.00 0.00
16016 Invoice 11/08/2024 Tire Repair 185.00 0.00
DARRIGO D'ARRIGO BROS. CO., OF CALIFORNIA 11/07/2024 Regular 0.00 42,188.00 51066 102824 Invoice 11/08/2024 IW PIPELINE EASEMENT 42,188.00 0.00 Packet Pg. 12
Attachment: Warrants #51034-51112 (3154 : Approve City Accounts Payable Warrants ##51034-51112) Check Report Date Range: 11/01/2024 - 11/13/2024
11/13/2024 9:54:18 AM Page 3 of 7
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 2686 DAVID & DONA LLOYD 11/07/2024 Regular 0.00 105.00 51067 241000531101 Invoice 11/08/2024 After Hour Phone Service 105.00 0.00 4447 FIRST-CITIZENS BANK & TRUST CO 11/07/2024 Regular 0.00 634.08 51068 45788427 Invoice 11/08/2024 MAINTENANCE 634.08 0.00
3274 GONZALES ACE HARDWARE INC. 11/07/2024 Regular 0.00 289.24 51069 036200/3 Invoice 11/08/2024 PW6 - Truck Repair 47.89 0.00 036347/3 Invoice 11/08/2024 Soccer Field Prep Paint 32.27 0.00 036511 Invoice 11/08/2024 FIRE TRUCK SUPPLY 70.23 0.00
036563/3 Invoice 11/08/2024 Building Maintenance 18.59 0.00 036591/3 Invoice 11/08/2024 Fall Festival 18.59 0.00
036680/3 Invoice 11/08/2024 Repair Benches 43.33 0.00
036690 Invoice 11/08/2024 SUPPLIES 14.45 0.00
036704/3 Invoice 11/08/2024 Adult Volleyball Whistles 10.30 0.00 036709/3 Credit Memo 11/08/2024 Building Maintenance -18.59 0.00 036710/3 Invoice 11/08/2024 Repairs & Maintenance 14.44 0.00 036711/3 Invoice 11/08/2024 Downtown Irrigation Repair 23.09 0.00 036714/3 Invoice 11/08/2024 Painting 14.65 0.00
1109 GONZALES UNIFIED SCHOOL DISTRICT 11/07/2024 Regular 0.00 14,803.89 51070 073124 Invoice 11/08/2024 Fuel Charges 7,896.71 0.00
AR25-00006 Invoice 11/08/2024 Fuel 5,965.52 0.00
AR25-00009 Invoice 11/08/2024 Gym Use 941.66 0.00
2256 GRAFIX SHOPPE 11/07/2024 Regular 0.00 515.00 51071 160346 Invoice 11/08/2024 Unit #8 Dodge Durango 515.00 0.00 4071 GREAT AMERICA FINANCIAL SERVICES CORPORATION 11/07/2024 Regular 0.00 1,789.25 51072 37676948 Invoice 11/08/2024 Copier Lease 1,789.25 0.00
1319 GREEN VALLEY FARM SUPPLY 11/07/2024 Regular 0.00 198.02 51073 352946 Invoice 11/08/2024 PPE 166.04 0.00
352947 Invoice 11/08/2024 PPE 22.19 0.00
353095 Invoice 11/08/2024 PPE 9.79 0.00
3326 HDL COREN & CONE 11/07/2024 Regular 0.00 1,291.97 51074 SIN044216 Invoice 11/08/2024 Property Tax Admin - Oct - Dec 2024 1,291.97 0.00 4120 HILL BROTHERS CHEMICAL CO 11/07/2024 Regular 0.00 3,958.25 51075 13111855 Invoice 11/08/2024 Chlorine 3,958.25 0.00
3485 INFOSEND, INC. 11/07/2024 Regular 0.00 4,516.87 51076 272181 Invoice 11/08/2024 Utility Bills & Inserts 4,516.87 0.00 4302 JOSSELYN ROMERO 11/07/2024 Regular 0.00 210.00 51077 11012024 Invoice 11/08/2024 2024 Youth Soccer Referee 210.00 0.00 204 LN CURTIS & SONS 11/07/2024 Regular 0.00 45,217.77 51078 INV874442 Invoice 11/08/2024 Extraction Equipment 45,217.77 0.00 251 MAGGIORA BROTHERS DRILLING, INC. 11/07/2024 Regular 0.00 11,375.00 51079 110714 Invoice 11/08/2024 Well 7 Repairs 11,375.00 0.00 MWILLIAMS MICHAEL WILLIAMS 11/07/2024 Regular 0.00 194.04 51080 103024 Invoice 11/08/2024 PARTIAL REFUND BUILDING PERMIT BP20 0.00 194.04 72 MISSION UNIFORM SERVICE 11/07/2024 Regular 0.00 1,024.79 51081 522542705 Invoice 11/08/2024 Uniforms 158.34 0.00
522587724 Invoice 11/08/2024 PW Uniforms 29.09 0.00
522592468 Invoice 11/08/2024 PW Uniforms 158.34 0.00
522592471 Invoice 11/08/2024 City Hall Matts 49.14 0.00 522592472 Invoice 11/08/2024 Fire Department Towels 89.57 0.00 522634549 Invoice 11/08/2024 PW Uniforms 158.34 0.00
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Attachment: Warrants #51034-51112 (3154 : Approve City Accounts Payable Warrants ##51034-51112) Check Report Date Range: 11/01/2024 - 11/13/2024
11/13/2024 9:54:18 AM Page 4 of 7
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 522634550 Invoice 11/08/2024 Towels 84.92 0.00
522634552 Invoice 11/08/2024 City Hall Matts 49.14 0.00 522634554 Invoice 11/08/2024 Fire Department Towels 89.57 0.00 522681316 Invoice 11/08/2024 PW Uniforms 158.34 0.00
3970 MNS ENGINEERS, INC. 11/07/2024 Regular 0.00 19,146.34 51082 87868 Invoice 11/08/2024 IW System CM Services 19,146.34 0.00 245 MONTEREY COUNTY HEALTH DEPARTMENT 11/07/2024 Regular 0.00 8,345.15 51083 27837 Invoice 11/08/2024 Water Samples 2,578.75 0.00
27838 Invoice 11/08/2024 Testing 393.00 0.00
27839 Invoice 11/08/2024 Wastewater Testing 200.00 0.00 27840 Invoice 11/08/2024 Wastewater Testing 1,160.00 0.00 27841 Invoice 11/08/2024 Water Samples 4,013.40 0.00
4376 MUNICIPAL EMERGENCY SERVICES INC. 11/07/2024 Regular 0.00 559.36 51084 IN1983185 Invoice 06/30/2024 Fire Uniform 559.36 0.00
4165 NATHAN CORDOBA 11/07/2024 Regular 0.00 296.00 51085 111724 Invoice 11/08/2024 Field Training Update 296.00 0.00 3247 NHA ADVISORS LLC 11/07/2024 Regular 0.00 14,650.00 51086 1489 Invoice 11/08/2024 IW Funding Support 8,731.25 0.00 1503 Invoice 11/08/2024 IW System Construction Loan 5,918.75 0.00 4298 OMAR GONZALEZ 11/07/2024 Regular 0.00 180.00 51087 11012024 Invoice 11/08/2024 2024 Youth Soccer Referee 180.00 0.00 91 P. G. & E. 11/07/2024 Regular 0.00 9,091.25 51088
101424 Invoice 11/08/2024 Electricial - 4182535966-8 158.99 0.00 101424A Invoice 11/08/2024 Electricial - 7607543802-8 165.31 0.00 101424B Invoice 11/08/2024 Electricial - 0000603794-9 590.05 0.00 101424C Invoice 11/08/2024 Electricial - 2700551279-6 3,508.72 0.00 101424D Invoice 11/08/2024 Electricial - 7787132203-6 1,108.59 0.00 101524 Invoice 11/08/2024 Electricial - 0587403348-2 263.89 0.00 101624 Invoice 11/08/2024 Electricial - 7686009735-1 2,298.87 0.00 102124 Invoice 11/08/2024 Electricial - 0047937680-8 556.90 0.00 102224 Invoice 11/08/2024 Electricial - 6301263-7 439.93 0.00 4299 PABLO GONZALEZ 11/07/2024 Regular 0.00 280.00 51089 11012024 Invoice 11/08/2024 2024 Youth Soccer Referee 280.00 0.00 341 PATRICK ASKEW 11/07/2024 Regular 0.00 361.00 51090
110124 Invoice 11/08/2024 Retiree Medical - November 2024 361.00 0.00 4236 PITNEY BOWES INC 11/07/2024 Regular 0.00 2,000.00 51091 111724 Invoice 11/08/2024 Postage 2,000.00 0.00
3828 POLARIS LAND SURVEYING 11/07/2024 Regular 0.00 675.00 51092 100124 Invoice 11/06/2024 IWWTP Survey 675.00 0.00
3194 PUBLIC AGENCY RETIREMENT SERVICES 11/07/2024 Regular 0.00 506.71 51093 56602 Invoice 11/08/2024 Admin Fees 506.71 0.00
4092 RAZZO LINK, INC. RAZZOLINK 11/07/2024 Regular 0.00 158.57 51094 408995 Invoice 11/08/2024 Internet 158.57 0.00
568 SAFEGUARD BUSINESS SYSTEMS 11/07/2024 Regular 0.00 485.31 51095 9006142402 Invoice 11/08/2024 Office Supplies - Envelopes 485.31 0.00 258 SALINAS VALLEY SOLID WASTE AUTHORITY 11/07/2024 Regular 0.00 4,832.36 51096 FY2024-25-Q1 Invoice 11/08/2024 Waste Authority Quarterly Admin Fee Jul- 0.00 4,832.36 2685 SC FUELS 11/07/2024 Regular 0.00 250.36 51097
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Attachment: Warrants #51034-51112 (3154 : Approve City Accounts Payable Warrants ##51034-51112) Check Report Date Range: 11/01/2024 - 11/13/2024
11/13/2024 9:54:18 AM Page 5 of 7
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount 0956877 Invoice 11/08/2024 Fuel 250.36 0.00
2673 SPECTRUM Charter Communications 11/07/2024 Regular 0.00 1,712.93 51098 17000070110212 Invoice 11/08/2024 Internet Service 1,199.00 0.00 17000100110012 Invoice 11/08/2024 Internet Service 513.93 0.00 4361 STAPLES, INC. Staples Contract & Commercial 11/07/2024 Regular 0.00 127.71 51099 7002820655 Invoice 11/08/2024 Office Supplies 127.71 0.00 TAYLORFRESH TAYLOR FRESH FOODS, INC 11/07/2024 Regular 0.00 96,231.00 51100 102924 Invoice 11/08/2024 IW PIPELINE EASEMENT 96,231.00 0.00 3880 THE MAYNARD GROUP 11/07/2024 Regular 0.00 284.49 51101 IN2051370 Invoice 11/08/2024 Zoom Meetings 284.49 0.00
3175 TRANS UNION RISK AND ALTERNATI DATA SOLUTIONS, INC. 11/07/2024 Regular 0.00 110.00 51102 298157-202410-1 Invoice 11/08/2024 TLO 110.00 0.00
2192 TYLER TECHNOLOGIES, INC. 11/07/2024 Regular 0.00 910.00 51103 025-484780 Invoice 11/08/2024 System Conversion 910.00 0.00 3577 U.S. BANK 11/07/2024 Regular 0.00 7,715.07 51104
100724 CH Invoice 11/08/2024 Various Charges City Hall CC 5,044.53 0.00 100724PD Invoice 11/08/2024 Various Credit Card Charges 2,670.54 0.00 **Void** 11/07/2024 Regular 0.00 0.00 51105
1112 US BANK 11/07/2024 Regular 0.00 2,520.00 51106
7518068 Invoice 11/08/2024 SA Bond Admin Fees 2,520.00 0.00 103 USA BLUE BOOK 11/07/2024 Regular 0.00 352.36 51107
INV00511010 Invoice 11/08/2024 Chlorination System Repair @ Wells 93.53 0.00 INV00515831 Invoice 11/08/2024 Repair Kits - Chlorine Pumps @ Wells 258.83 0.00 132 VALLEY ELECTRIC MOTOR SERVICE 11/07/2024 Regular 0.00 1,335.07 51108 33231 Invoice 11/08/2024 Repairs to Aerator Motor @ Sewer Plant 1,196.58 0.00 33235 Invoice 11/08/2024 Fittings for Aerator Pumps @ Sewer Plant 138.49 0.00 99 VOSTI'S, INC. 11/07/2024 Regular 0.00 320.60 51109
274535-1 Invoice 11/08/2024 Vehicle Maint/Repairs 162.78 0.00 274699-1 Invoice 11/08/2024 Generator Maintenance 157.82 0.00 2919 WAGEWORKS 11/07/2024 Regular 0.00 100.00 51110
7112967 Invoice 11/08/2024 Compliance Fees 50.00 0.00
INV7146381 Invoice 11/08/2024 FSA Fees 50.00 0.00
WESTPHAL WESTPHAL RANCH LLC 11/07/2024 Regular 0.00 7,236.00 51111 102824 Invoice 11/08/2024 IW PIPELINE EASEMENT 7,236.00 0.00 3615 WINZER FRANCHISE COMPANY 11/07/2024 Regular 0.00 165.09 51112 2519260 Invoice 11/08/2024 Vehicle Maint/Repairs 165.09 0.00 IRS INTERNAL REVENUE SERVICE 11/08/2024 Bank Draft 0.00 17,650.72 DFT0000021 INV0000100 Invoice 11/08/2024 SOCIAL SECURITY WITHHOLDING 17,650.72 0.00 EDD EMPLOYMENT DEVELOPMENT DEPT. State of California 11/08/2024 Bank Draft 0.00 6,194.80 DFT0000022 INV0000101 Invoice 11/08/2024 CA STATE WITHHOLDING 6,194.80 0.00 IRS INTERNAL REVENUE SERVICE 11/08/2024 Bank Draft 0.00 16,013.05 DFT0000023 INV0000102 Invoice 11/08/2024 PAYROLL FEDERAL WITHHOLDINGS 16,013.05 0.00 IRS INTERNAL REVENUE SERVICE 11/08/2024 Bank Draft 0.00 5,255.47 DFT0000024 Packet Pg. 15
Attachment: Warrants #51034-51112 (3154 : Approve City Accounts Payable Warrants ##51034-51112) Check Report Date Range: 11/01/2024 - 11/13/2024
11/13/2024 9:54:18 AM Page 6 of 7
Vendor Number Vendor Name Payment Date Discount Amount Payment Type Payment Amount Number Payable # Post Date Payable Description Payable Amount Payable Type Discount Amount INV0000103 Invoice 11/08/2024 MEDICARE WITHHOLDING 5,255.47 0.00 Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code POOL-MECHANICS Summary
Bank Drafts
EFT's
77 0
2 4
0 0.00

0.00 0.00

0.00 0.00
83 0.00
Payment
449,613.19

0.00 0.00
45,114.04

0.00 494,727.23
Payable
Count
146
0 0
4 0
150
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Attachment: Warrants #51034-51112 (3154 : Approve City Accounts Payable Warrants ##51034-51112) Check Report Date Range: 11/01/2024 - 11/13/2024
11/13/2024 9:54:18 AM Page 7 of 7
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
77 0
2 4
0 0.00

0.00 0.00

0.00 0.00
83 0.00
449,613.19

0.00 0.00
45,114.04

0.00 494,727.23
146
0 0
4 0
150
Fund Name Amount Period
Fund Summary
999 Pooled Cash Fund 494,727.23 11/2024
494,727.23
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Attachment: Warrants #51034-51112 (3154 : Approve City Accounts Payable Warrants ##51034-51112) Finally on April 27th we celebrated a day that so many of us have been waiting for – the groundbreaking of the Dennis and Janice Caprara Community Center Complex. The day was In October is always a fun month! It kicks off back-to-back activities for the City’s Recreation Department. We started off the month with a Walk-to-School Day with our friends from the County Health Department, our School Resource Officer, and our friend Chase. We had a great turn out and the kiddos had an amazing time walking to school together.

From October 16th to the 18th, our City Manager attended the League of California Cities Conference. She got to learn about the Cities’ efforts across the State and the challenges that they are also facing, as well as new legislation that is coming down that may impact us.

Dennis and Janice Caprara Community Center Complex
On October 11th, we celebrated the “Topping Out” ceremony for the Dennis and Janice Caprara Community Center Complex. The “Topping Out” is when the last beam is placed. We were all very excited to get to this point in the project and continue to be on track for its completion in the Winter of 2025!
We are still working on securing funding for Phase II of the project. If you are interested in making a donation to the Center, please visit the Community Foundation for Monterey County and in the search bar insert Gonzales Community Center Capital Campaign.

City of Gonzales
City Manager Report
October 2024
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Attachment: City Manager's Report October 2024 (3157 : City Manager's Report - October 2024) AGENDA
ITEM
7 Economic Development and Revenue Generation
• An exciting opportunity is coming to the community. At their October 7th meeting, the Gonzales City Council approved a lease with Legacy Sings for a digital billboard to be constructed on a city-owned parcel adjacent to Highway 101. The billboard will generate some much-needed revenue for the City as well as provide a great communications tool. The City will be able to utilize the billboard for certain City civic promotions and public safety announcements. Businesses will be able to purchase advertising space and Gonzales-based businesses will receive a 25% discount. The signs’ characteristics will fit in nicely with the City’s look and feel.
• We Are Hiring a Development Technician/Administrative Analyst. If you are interested or know of someone who is, please visit the website for more information. The City has some amazing projects on the horizon and we are looking for the ideal candidate who would like to be part of bringing them to fruition.

Housing
• The Visita Lucia Housing Project continues to advance. Negotiations are ongoing with the developer.
• A combined Planning Commission and City Council Workshop will be held on the 12th of November so that the community can hear more about the proposal. Shortly after, hearings will be scheduled with the Planning Commission and the City Council to consider the project.

Wastewater Treatment Plant Expansion and Rehabilitation • The first phase of the construction of the Industrial Wastewater Treatment Plant is moving along smoothly. A groundbreaking will be held on November 22nd to celebrate this major milestone.

Save the Date for the upcoming events:
• Holiday Lights Event will be December 7th, from 4:30pm to 7:30pm down Fourth Street. • The Christmas Parade will be held on December 14th.

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Attachment: City Manager's Report October 2024 (3157 : City Manager's Report - October 2024) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Activity Report

ECONOMIC DEVELOPMENT
Freeway Sign. Legacy Sign Company is preparing construction plans for City permits and will soon begin fabrication of the electronic reader board. The sign company is exploring reducing the height of the sign to 45 feet from an approved 59 feet, although revised plans have not been submitted. Staff continues to keep in communication with the sign company to keep the project moving forward.

HOUSING
Vista Lucia Specific Plan. This activity report is being prepared prior to a scheduled Joint Workshop of the Planning Commission and City Council for Tuesday 11/12/2024. Staff continues to meet and confer daily on the Development Agreement (DA). Following the workshop, Public Hearings will be scheduled for the Planning Commission and City Council. Updates have been made to the City’s website and operational links have been provided to the Draft EIR, Draft Specific Plan and Tentative Subdivision Map. https://gonzalesca.gov/node/673
Outreach. The City continues to add names and groups (including realtors, commercial brokers and civic leaders) to the “Interested in Housing” list for our citizens (178 persons as of November 6, 2024).

People on the list have been notified of the coming Vista Lucia Specific Plan PC/CC joint workshop. We will draw from the outreach list once again to invite public participation in the separate Planning Commission and City Council public hearings, and then to the LAFCo public hearing annexation proposal.

AGENDA
ITEM
8 Packet Pg. 20
Housing Element. The Office of Housing and Community Development (HCD) is reviewing the City’s second draft of the 6th Cycle Housing Element. Comments will be returned to the City by December 24, 2024.

CODE ENFORCEMENT
The City continues to meet with property owners, inspect potential violations and start documentation to progress to remedies. Present cases involve vehicles in yards, a garage that had been converted, tall grasses, garbage and potential fire danger, and unpermitted structures in a rear yard, among others.

BUILDING DIVISION ACTIVITY
From October 1, 2024, to October 31, 2024 (31 reporting days), the City issued 3 permits for electrical work associated with solar installations. The estimated value of all improvements was $33,201.00.

GENERAL COMMUNITY DEVELOPMENT ACTIVITY
Potential Mini Storage and Vehicle Storage. The Community Development Department continues to work with an applicant as his proposal takes shape for new commercial / industrial uses on Gonzales River road on the western city edge. The potential here is to provide support for our major agricultural processing giants but will also include mini storage and vehicle storage opportunities for the public.

City’s Business License Ordinances. Economic Development staff is looking into an update to the City’s Business License Ordinances that have not been revisited since 1972 (52 years).

The City continues to recruit for the vacant Development Services Technician & Administrative Analyst position. The position is full-time and has a salary range of $4,044-$5,504 monthly. To apply, please go to https://gonzalesca.gov/services/human-resources/job-opportunities.

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City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Carmen Gil, City Manager
SUBJECT: Community Engagement & Recreation Departments Activity Report Current Activities
Kid Power
• In October, Kid Power had a total of 28 kids enrolled in the Afterschool Program. We continue to prioritize helping the kids with their homework as well as providing fun ways to engage the kids through team building activities, and arts and crafts.
• Every October we host a Halloween Door Decorating Contest at Kid Power, the themes this year included: Disney Villains, Rugrats, and Casper the Ghost. This year, first place went to the Disney Villains, and they did a great job! Thank you to all who voted. The kids enjoyed meeting everybody who came to vote. Thank you, Public Works, Fire Department, City Hall Staff, City Manager, Mayor and Council, for coming in person, you all have no idea the impact you have on our kids!
AGENDA
ITEM
9 Packet Pg. 22
• Sign-ups have now opened for a Fall Camp. We will have Fall Camp for the first three days of the week of Thanksgiving, and we are looking forward to doing lots of arts and crafts and activities with those kids throughout the day. So far, we already have 8 kids signed up, which is exciting so hopefully we get quite a few more. We will continue to advertise so that we can have more kids for Fall Camp.
• For Halloween, the staff dressed up as Disney princesses! This year, we decided to have fun Halloween themed snacks for the kids which included: mummy dogs, Cheeto puffs that we called “pumpkin poop”, and cheese sticks that we designed as ghosts. We played games that we made up and they got little prizes, such as glow sticks, and a little bit of candy.

City Sports League
• Gonzales youth soccer league ended this month. Our ages 6-8 and 11-13 division had its last games on Friday the 18th. Our ages 2 ½ - 3 ½, 4-5 and 9-10 had their last games on Saturday the 19th. Medals and certificates were passed out to all participants, along with the Sportsmanship Award that was awarded to one special player per team.
• Gonzales Adult co-ed volleyball team registration ended on the 23rd. We have a total of 12 teams and three divisions. Each division has 4 teams. We have a total of 100 participants in the league.

The first game is scheduled to start on Tuesday November 5th. • Gonzales Youth Basketball League registration started on the 24th. We had 6 participants register in October. Our registration period will run until December 22nd. We will start our league with player skills assessments on Tuesday, January 14th. This year we will be running an all-girls travel inter-league with south county cities for ages 5-13. It will consist of 3 age brackets, 7U, 10U and 13U. Our Boys grades 6th- 8
th will also travel inter-league with south county. Our other age divisions which consist of PreK-TK, Kinder-1
st, 2nd
- 3
rd, and 4th
- 5
th will play here in
Gonzales amongst ourselves. We are looking forward to another fun and exciting season.

Packet Pg. 23
Gonzales Youth Council
• The Gonzales Youth Council met October 3rd and October 17th for their regularly scheduled meetings with all members.
• The GYC Commissioners continue to collaborate with other Monterey County Youth Councils as part of their Youth Participatory Action Research (YPAR). The focus of this YPAR is to learn more about the barriers that youth face when it comes to Career and College Preparation, as well as where they go to seek help regarding Career and College Preparation. They currently meet twice a week, and they are expected to share their findings on Saturday, November 9th in the Gonzales PD room.
• On Thursday, October 24th, the GYC had the opportunity to do a site tour of the construction that is currently taking place where the future Gonzales Community Center will be located. For some of the members, this was their first time stepping into the construction site and really solidified how quickly this project is making progress.

Recreation/Community Engagement
• On Saturday, October 19th we hosted our annual Free Halloween Movie Night at Centennial Park! We also hosted a costume contest, and we were happy to be able to provide people with the option to either stay in their vehicles or set up their lawn chairs to watch the movie. • We continue to host Senior Art and Cooking classes in partnership with Alliance on Aging, Monterey County Health Department, Gonzales Adult School and Taylor Farms Family Health & Wellness Center. For the month of October, the cooking class consisted of baked squash with a sweet pomegranate sauce, perfect for the fall!
• On Saturday October 26th we hosted our 2nd annual Fall Festival/ Trunk or Treat from 4:00pm7:00pm along 4th St. Although we did not reach the same number of Trunk or Treat Participants Packet Pg. 24
as last year, we were content with the turnout we received from the community! We also want to thank all City Staff, Trunk or Treat Participants, and Vendors that made this event a success! Activities in the Planning Phase
• In partnership with the American Legion Post 81 and the American Legion Auxiliary Post 81, we will be hosting a Hometown Heroes Ceremony on November 6th at Central Park from 12:00pm -12:45pm. In total, we were able to honor 27 Veterans, we hope this becomes an annual tradition. • We have begun planning for our Holiday Lights Festival, which is taking place on Saturday, December 7th from 4:30pm-7:30pm. The event will consist of games, music, raffles, vendors and a chance to meet Santa!
• This year, we have decided to bring back our Holiday House Decorating Contest. We will be opening up registrations mid-November, we hope to spread the joy of Christmas through this fun and friendly competition.
• Our Holiday Lights Parade will be taking place on Saturday, December 14th. The route is still being determined but we will be posting the information and registrations at City Hall and via an online portal.

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City of Gonzales

FIRE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, City Manager
SUBJECT: Fire Department Activity Report

RESPONSES
There were 72 calls for service during the Month of October, bringing the total number of calls for calendar year 2024 to 706. There was 1 vehicle fire, 36 EMS calls, 3 hazardous conditions calls, 16 service calls, 10 calls cancelled in route, and 5 false alarms. The department responded to a serious vehicle accident which resulted in a civilian fatality on October 19th. There were two instances of simultaneous calls requiring assistance from our mutual aid partners.

DEPARTMENT OPERATIONS
All full-time positions are filled. Steven Halcon was promoted from acting Captain to permanent Captain after achieving the highest score of the competitive selection process. We have one active volunteer firefighter. Crews trained on drafting, forward hose lays, and vehicle extrication using the new grant funding vehicle extrication tools. Water tender 8141 is currently out of service due to a broken PTO driveline, we expect repairs to be completed the week of November 11th. After accident repairs were completed to Engine 8112 and the unit is currently on reserve status. All other apparatus remains in service without the need for significant repairs. Eight annual fire inspections for local businesses were conducted during the month.

COMMUNITY ENGAGMENT
The Fire Department assisted the recreation department with the set and takedown of the inflatable screen for the drive-in movie and participated in the annual Fall Festival downtown. The department also assisted the school district with providing traffic control for both the Homecoming and Halloween parades.

AGENDA
ITEM
10 Packet Pg. 26
GRANTS
New extrication equipment has been purchased by the grant awarded to the department by the California Office of Traffic Safety. This equipment has been received, all personnel have been trained, and the equipment has been placed in front line service. The Fire Chief received notification from the Assistance to Firefighters Grant program (funded by DHS/FEMA), that our grant application for the purchase of a new fire engine was denied. Staff plans on applying for the grant again as soon as the application period opens.

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City of Gonzales

POLICE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: October 2024 Police Department Activity Report Crime and Arrests
The Gonzales Police Department investigated 9 Part I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of October 2024. During the same time last year, there were 7 Part I Crimes investigated.

During the month of October 2024, Officers made 17 arrests. During the same time last year, there were a total of 15 arrests.

During the Month of October 2024, the department initiated 1 Abandoned Vehicle Abatement (AVA) cases. This violation was self-abated by the registered owners upon notification of the Municipal Code Violation.

Calls for Service
The Department responded to 755 calls for service in October 2024. There were 66 crimes, accident, and information reports taken during the month.

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

Animal Control Trapped/Stray Dead Injured Bite Cases Returned to Owner
Transported to the SPCA
Cats 8 7 0 0 0 0
Dogs 0 1 0 0 10 2
Total = 8 8 0 0 10 2
AGENDA
ITEM
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Significant Cases
Although the Police Department responded to 755 calls for service during the month of October 2024, the most significant cases involved 9 Part I crimes. 0- Homicide 0 - Rape, 0 - Robbery, 8 - Assault, 1 - Burglary, 0 - Larcenies, and 0 -Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

Department sworn staff Completed the second bi-annual range training.

Other
On October 2, 2024, National Walk to School Day, Officer Perez walked with students attending La Gloria Elementary School from Central Park to La Gloria School.

The Department participated in the City’s 2024 Fall Festival on October 26, 2024.

Officer Perez and ACO Garcia hosted a Trunk or Treat patrol vehicle where they handed out candy to festival attendees.

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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Public Works Department/City Engineer Activity Report

BUILDINGS
Community Center Complex Project – The contractor continues to construct various elements of the parking lot and is completing the framing and roof for Building A. The GYC toured the site on 10/24/2024. City staff and the Construction team met with the GYC on 11/07/2024 and the GYC performed a “sit test” of the proposed chairs for the different spaces in the Teen Center and provided feedback to the project interior designer. Staff will provide an update on the project at the 11/18/2024 Council meeting.

WASTEWATER

1. Industrial Wastewater (IW) System – The IW Pipeline Contract was awarded at the 9/03/2024 Council meeting to Sierra Construction & Excavation. A preconstruction meeting was held on 10/03/2024 and the contractor began construction on 11/04/2024. Staff and the MNS Construction Manager have been meeting with the various property owners to obtain the temporary and permanent easements needed for the work. The contract for the IW Treatment Facility will be issued for public bid in January 2025.

ROADS

1. Safe Routes to School – TAMC staff presented the steering committee’s two recommended projects at the 6/17/2024 Council meeting. Staff is reviewing a proposal from a consultant to design the two recommended projects. TAMC staff will present the final version of the Safe Routes to School plan at the 11/18/2024.

AGENDA
ITEM
12 Packet Pg. 30

2. Monterey Salinas Transit Circulator – Over the last three years, MST staff coordinated with City staff to replace the Dial-a-Ride Service with a fixed route bus service in Gonzales. MST staff issued the project for bid and Don Chapin Company was the low bidder. Construction began on 9/12/2024 and was substantially completed on 10/11/2024. The only remaining items are painting the red curbs at each stop by the contractor and for MST staff to install the bus furniture and signage.

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

OTHER PROJECTS

1. Emergency Preparedness – the PW Director and Supervisor meet monthly with Fire Chief Jason and Police staff to discuss Emergency Preparedness. At the 10/9/2024 meeting, we stepped through a desk top exercise regarding closure of US101 due to a major vehicle accident.

2. GIS – City staff continues to work on a GIS mapping system by inputting field data for water, sewer and storm drainage systems. Staff hold monthly meetings with ProWest (GIS consultant). Current mapping efforts include assessing sidewalks to map uplifted or missing sidewalk panels and performing a street sign inspection.

PUBLIC WORKS OPERATIONS AND MAINTENANCE

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

Staff have been discing at the existing and new treatment plant property. Staff perform maintenance at the sewer lift stations.

The disposal fields at the WWTP are not percolating as they should, and staff continue to try different options to make the plant run better.

Staff performing weed control at the
Wastewater Treatment plant.

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WATER
Staff tests for chlorine residual daily, and maintenance on the water system. Staff repairs chlorine leaks and perform maintenance on the wells. Staff continues to map the water and sewer system for the GIS mapping.

Staff completed the lead and copper survey. Staff will be sending letters to residents with galvanized piping.

Staff have also completed the Annual Stormwater report by the 10/15/2024 deadline.

Staff continue to clean and maintain bioswales on Center Street.

PARKS
Staff mows turf areas in the City parks regularly. Staff cleans restrooms, cleans trash, and make repairs in parks. Staff repair and maintain irrigation in Central and Centennial Park. The irrigation has been out of order for a few weeks at Central Park. The electrical box was corroded and in need of repair. Repairs have been made and the irrigation has been repaired.

GOVERNMENT BUILDING
Staff continue to maintain all City owned buildings. Staff clean the Vosti Center restrooms daily. Staff cleans the Council Chambers weekly.

STREETS
Staff continue to fill potholes. Staff continue to paint street markings including red zones.

EVENTS
Staff have been participating in in-house training.

Staff participated in and set up for the Harvest Trunk or Treat festival.

Staff creating a “trunk or treat”
vehicle for Intern Alejandra.

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Staff participated in the “Topping out Ceremony”
at the Community Center. Guests were invited
to sign the last beam to be placed.

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AGENDA
ITEM
RESOLUTION NO. 2024-68

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES ADOPTING THE CITY COUNCIL MEETINGS SCHEDULE FOR 2025

BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF GONZALES, that the City Council meetings shall be held, unless otherwise noticed, at 6:00pm the first and third Monday of each month, in the City Council Chambers located at 117 Fourth Street, Gonzales, California, in accordance with “Exhibit A” attached hereto.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 18th day of November, 2024 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2024-68 (3151 : Resolution No. 2024-68 Adopting Council Meeting Schedule for 2025) 13 2025 City Council Meetings Calendar
Month
Due to holidays & conflicts, some dates
may not fall on the specific day or month
Meeting Date
MONDAY
(unless specified)
JANUARY Jan-13 (due to New Year’s Holiday)
Jan-21 (Tuesday, due to Martin Luther King, Jr. Holiday) FEBRUARY Feb-3
Feb-18 (Tuesday, due to President’s Day Holiday)
MARCH Mar-3
Mar-17
APRIL Apr-7
Apr-21
MAY May-5
May-19
JUNE Jun-2
Jun-16
JULY Jul-7 (Cancelled due to Summer Recess)
Jul-21
AUGUST Aug-4
Aug-18
SEPTEMBER Sep-2 (Tuesday, due to Labor Day Holiday)
Sep-15
OCTOBER Oct-6
Oct-20
NOVEMBER Nov-3
Nov-17
DECEMBER Dec-1
Dec-15 (Cancelled due to Holidays)
Regular meetings are held every 1st and 3rd Monday of the month (unless otherwise specified)
at 6:00 p.m. in the City Council Chambers
117 Fourth Street, Gonzales, CA 93926
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Attachment: Resolution No. 2024-68 (3151 : Resolution No. 2024-68 Adopting Council Meeting Schedule for 2025) City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-69 Approving Community Action Grants for FY 2024-2025

RECOMMENDATION
It is recommended that the City Council Adopt Resolution No. 2024-69, A Resolution of the Council of the City of Gonzales Approving Eleven (11) Community Action Grant Applications for FY 2024-2025 with Funding Allocations to Implement a Variety of Qualified Civic-Minded Community Activities.

BACKGROUND
In November 2014, 65 percent (65%) of Gonzales voters approved Measure ‘K’, enacting a one-half percent (0.5%) transactions and use tax. Included with the passage of the Measure ‘K’ Transaction and Use Tax was the formation of an Oversight Committee to monitor and provide advisory recommendations to the City Council regarding the use of the tax revenues. The formation of the Oversight Committee was necessary to maintain the public transparency needed for the use of these funds. In June of 2016, it was determined that a Small Grants Program to support a variety of civic-minded activities that aimed to enhance the Love, Care, and Connect philosophy of the City and where community individuals could contribute to community connectedness and build opportunities for the community through service and volunteerism would be beneficial and something that aligned with the city’s intended outcomes. Since then, the Community Action Grants Program has been a staple for community groups that need a little bit of support to get their ideas and/or projects done.

REVIEW & ANALYSIS
The Community Action Grant Program continues to grow each year. On October 30, 2024, the subcommittee of the Measure ‘K’ Oversight Committee reviewed and scored a total of twelve (12) applications and is recommending the approval of eleven (11) of them. The recommended small grants and the funding allocations for the FY 2024-2025 are as follows:

AGENDA
ITEM
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Recommended Small Grants

1. Abrazos y Suspiros $3,000

2. Adventure Seeking Seniors $5,000

3. Gonzales Youth Guardians – Community Activities $5,000

4. Grupo Unido de Gonzales – Dia Del Nino / Day of the Child $3,000

5. GUHS Debate Organization Conference $2,500

6. Pueblo Unido de Tateposco (LUDA) – 5 de Mayo $1,000

7. Salad Bowl Boxing $2,000

8. Salvation Army – Camp Redwood Glen $3,000

1. Salvation Army – Holiday Program $5,000

2. Salvation Army – Utility Assistance Program $3,000

3. Save the Wales $2,500
Total = $35,000
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

Explain: The Grant Program directly supports the Vision, by providing funds to community members to implement programs, activities, and/or projects that help Gonzales preserve, retain and in many cases enhance its small-town charm.

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ___ No.

Explain: The Measure ‘K’ Transaction and Use Tax offers a significant source of funds for the City to undertake public projects that it might otherwise not be able to do. The Community Action Grants Program is one of those programs that serves to support the community’s quality of life while allowing local residents to serve, take action, and implement activities that serve to improve the overall community.

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

Explain: Please refer to the explanation written above for the Vision.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation X Yes No N/A
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• Environment Yes No X N/A
• Education X Yes No N/A
Explain: The recommended list of Community Action Grant recipients was selected and vetted by the Measure K Subcommittee. This ensures transparency and the adequate use of funding.

BUDGET
The budget for the Small Grants Program is $35,000. From this amount allocations for each program/project were determined based on funding available and need. Each program’s reach and previous success if any was also taken into consideration.

CONCLUSION
It is recommended that the City Council Adopt Resolution No. 2024-69, A Resolution of the Council of the City of Gonzales Approving Eleven (11) Community Action Grant Applications for FY 2024-2025 with Funding Allocations to Implement a Variety of Qualified Civic-Minded Community Activities.

Attachments:

4. Resolution No. 2024-69
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RESOLUTION NO. 2024-69

A RESOLUTION OF THE COUNCIL OF THE CITY OF GONZALES APPROVING ELEVEN (11) COMMUNITY ACTION GRANT APPLICATIONS FOR FY 2024-2025

WITH FUNDING ALLOCATIONS TO IMPLEMENT A VARIETY OF QUALIFIED

CIVIC-MINDED COMMUNITY ACTIVITIES
WHEREAS the community of Gonzales passed Measure ‘K’ in 2014 enacting a one-half (0.5%) percent transactions and use tax (TUT); and
WHEREAS the Measure ‘K” Committee was formed to ensure the adequate use and disbursement of funds to ensure that they indeed met their original purpose of improving the quality of life of Gonzales residents; and
WHEREAS in 2016 the Measure ‘K’ Committee recommended to the Gonzales City Council and the City Council approved the adoption of a Community Grants Program, which has been in operation ever since; and
WHEREAS for FY 2024-2025, a $35,000 dollar budget was approved to support local residents in bringing their ideas and projects to life through the Community Grants Program; and WHEREAS the Measure ‘K’ Committee is responsible for the oversight and accountability of the Measure ‘K’ funds and has vetted and found the community projects identified below to be aligned with the City’s Mission and Vision and as so has put them forward for the recommended funding; and
WHEREAS the City Council agrees that the projects put forth by the Measure K Committee support the overall goals of the City and will contribute to the betterment of the community.

NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Gonzales that the following Community Grants are being approved for funding in FY 2024-2025:

Recommended Small Grants

1. Abrazos y Suspiros $3,000

2. Adventure Seeking Seniors $5,000

3. Gonzales Youth Guardians – Community Activities $5,000

4. Grupo Unido de Gonzales – Dia Del Nino / Day of the Child $3,000

5. GUHS Debate Organization Conference $2,500

6. Pueblo Unido de Tateposco (LUDA) – 5 de Mayo $1,000

7. Salad Bowl Boxing $2,000

8. Salvation Army – Camp Redwood Glen $3,000

9. Salvation Army – Holiday Program $5,000

10. Salvation Army – Utility Assistance Program $3,000

11. Save the Wales $2,500
Total = $35,000
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Attachment: Resolution No. 2024-69 (3150 : Resolution No. 2024-69 Community Action Grants for FY 2024-2025) PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 18
th day of November 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
Packet Pg. 40
Attachment: Resolution No. 2024-69 (3150 : Resolution No. 2024-69 Community Action Grants for FY 2024-2025) City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Carmen Gil, City Manager
SUBJECT: Kid Power Program Grant from Nancy Buck Ransom Foundation

RECOMMENDATION
It is recommended that the City Council approve a grant from the Nancy Buck Ransom Foundation for the Kid Power program in the amount of $15,000 and adjust the FY 2024-2025 Budget to reflect the adjusted revenue.

BACKGROUND
The Nancy Buck Ransom Foundation funds “youth-serving programs that allow youth to flourish and prosper”. Thus, staff thought that the Kid Power program would be a good fit for what they look to support. Staff applied for funding for a program that would incorporate STEAM activities into Kid Power and would allow staff to build some capacity for working with tools that would push the children’s learning to another level. Staff requested funding to purchase 3D pens that students can use to create, car building kits, which students will work in teams to build - incorporating engineering into the lessons, and arts supplies. As well as a bit of funding to support staff time and capacity building around these activities. Staff is also working with interns from CSUMB to create curriculum around these activities which their engineering students will then help to implement.

REVIEW & ANALYSIS
These grants, although small, are a great way to fund programing in our signature programs while helping to slightly support our operating costs. Bringing these opportunities to the children of Kid Power will allow them to explore new STEAM activities and also allows us to start building programming and partnerships for the Teen Innovation Center.

How Recommendation Supports the Vision
AGENDA
ITEM
15 Packet Pg. 41
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

Explain: This grant supports the Vision by providing funds to support and enhance our current Kid Power programming.

Explain: It also supports the Mission. These type of programs and partnerships help us prepare for the grand opening of the Teen Innovation Center as it allows students to begin exploring more intentional STEAM activities and provides supplies to the program that we don’t currently have.

Explain: Please refer to the explanation written above for the vision.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No N/A
• Housing Yes No X N/A
• Recreation X Yes No N/A
• Environment Yes No X N/A
• Education X Yes No N/A
Explain: This grant supports education, but it also supports our budget as it helps to offset some of our operating costs.

BUDGET
Accepting this grant would bring the City $15,000 in new revenue for the Kid Power program for FY 2024-2025, which needs to be spent in one calendar year.

CONCLUSION
It is recommended that the City Council approve a grant from the Nancy Buck Ransom Foundation for the Kid Power program in the amount of $15,000 and adjust the FY 2024-2025 Budget to reflect the adjusted revenue.

Attachments:

1. Award Letter
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Packet Pg. 43
Attachment: Award Letter (3153 : Kid Power Program Grant from Nancy Buck Ransom Foundation) Packet Pg. 44
Attachment: Award Letter (3153 : Kid Power Program Grant from Nancy Buck Ransom Foundation) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-67 Wastewater System Financing Documents

RECOMMENDATION
Staff recommends that the City Council Adopt Resolution No. 2024-67, A Resolution of the City Council of the City of Gonzales Approving a Conveyance Agreement and an Installment Purchase Contract, Making Certain Determinations Relating Thereto; and Authorizing Certain Other Actions in Connection Therewith.

The City secured funding through the State Water Resources Control Board (SWRCB) for construction of the Industrial Wastewater System. The Funding Agreement with SWRCB dated July 12, 2024 requires the City to submit a reimbursement request for costs incurred. The City cannot request reimbursement for any Project Cost until such cost has been incurred and is due and payable by the City. Due to the delay in reimbursement, the City expects it will need interim funding (“2024 Wastewater Interim Loan”) to bridge the gap between timely payment of project costs and receiving reimbursement from SWRCB.

The City must pay the various contractors on the Industrial Wastewater System Project within 30 days of approving their invoice for payment. It is anticipated that reimbursement from SWRCB will generally take three to five months from City submittal of a reimbursement claim. This timing gap results in the City needing short-term cashflow of potentially $10 million during the two construction contracts (IW Pipeline contract and the IW Treatment Facility contract).

Over the last two months, staff has been working with NHA Advisors (Municipal Advisor), Kutak Rock (Special Counsel), and Hilltop Securities (Placement Agent) to facilitate the 2024 Wastewater Interim Loan, secure a bank lender and draft the necessary legal documents.

AGENDA
ITEM
16 Packet Pg. 45

REVIEW AND ANALYSIS
Given the City’s need is short-term cashflow, it was determined that a revolving bank loan would be the best option, as it allows the City to only have an amount outstanding at any given time that is needed to bridge the cashflow gap, similar to a line of credit. Such structure limits the City’s interest cost.

Hilltop Securities, acting as Placement Agent for the financing, requested proposals from several banks for the City’s 2024 Wastewater Interim Loan. The City received five bank proposals, with Banner Bank offering the lowest and only fixed interest rate option. All other bank responses included only a variable rate option, with the initial variable rate higher than Banner Bank’s proposed fixed rate option. It was determined that a fixed rate option is ideal as it limits the interest rate risk associated with the variable rate options. Banner Bank’s proposal also includes an upfront bank fee of $25,000 plus Bank legal fees of $15,000.

The 2024 Wastewater Interim Loan with Banner Bank will be structured as an Installment Purchase Contract with a “revolving” or prepayment feature. This means that the City can borrow, prepay and reborrow at any time during the Loan term, if the total outstanding amount does not exceed $10,000,000.

The City will draw funds from the 2024 Wastewater Interim Loan to pay the Industrial Wastewater Project costs as needed. At the same time, the City will submit a reimbursement request to SWCRB for such Project costs. Once such reimbursement is received, the City will make a payment to the 2024 Wastewater Interim Loan (Installment Purchase Contract).

SWCRB reimbursements are pledged to the repayment of the 2024 Wastewater Interim Loan, along with the City’s Sewer Fund Net Revenues. SWRCB requires that their reimbursements are applied to specific Industrial Wastewater Project costs and that such reimbursements cannot be applied to interest or financing related costs. Therefore, it is anticipated that the City’s Sewer Fund Net revenues will be applied towards interest repayment and financing costs associated with the 2024 Wastewater Interim Loan.

Total interest and financing costs associated with the 2024 Wastewater Interim Loan:

It is not certain how much interest the City will pay on the 2024 Wastewater Interim Loan, as such interest is dependent on the outstanding balance at any given time, resulting from the timing of reimbursement from SWRCB. Based on the estimated Industrial Wastewater Project construction schedule and assuming a 4-month reimbursement from SWRCB, it is estimated that total interest cost could be $328,215 during the Project timeline. Such estimates assume that the City’s largest principal balance outstanding amount on the 2024 Wastewater Interim Loan reaches $7,704,799. The repayment of such principal amount together with estimated interest cost could be $8,033,014. The actual amount outstanding and actual interest may be more or less, depending on the actual construction schedule and SWRCB reimbursement timing.

In addition, financing issuance costs associated with the 2024 Wastewater Interim Loan are expected to be approximately $132,000. Such costs are summarized below. Financing costs related to Kutak Rock, NHA Advisors and Hilltop Securities were previously approved by the City Council at your October 7, 2024 meeting.

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Financing Costs of Issuance
Service Payee
Private
Placement
Bond Counsel Kutak Rock $25,000
Municipal Advisor NHA Advisors 39,500
Placement Agent Hilltop Securities 25,000
Bank Fee for Facility Banner Bank 25,000
Bank Counsel Mardikes Law LLC 15,000
CDIAC State of California 2,500
Total $132,000
It is anticipated that the City will make monthly interest payments on the 2024 Wastewater Interim Loan for interest accrued on the outstanding balance through the maturity of the 2024 Wastewater Interim Loan. Maturity of the 2024 Wastewater Interim Loan will be 2.5 years after closing, with the option to extend for 6 months.

Upon final reimbursement from the SWRCB, the City will apply such reimbursement to redeem the outstanding amount of the 2024 Wastewater Interim Loan. At such time, the 2024 Wastewater Interim Loan will no longer be outstanding and the City will begin making payments on the SWRCB Agreement.

The SWRCB Agreement provides long-term funding of $28,884,000 at 1.70% annual interest rate.

Payments associated with the SWRCB are estimated at $1,242,000 annually over 30-years.

Not-to-Exceed Parameters in the Resolution:

The resolution before the City Council would authorize staff to proceed with the 2024 Wastewater Interim Loan, so long as the maturity does not exceed December 31, 2027 (includes the 6-month extension subject to approval by the Lender), the interest rate with respect to the Installment Payments does not initially exceed 4.34% per annum (except in the event of default or the transaction converting from tax-exempt to taxable), and the total principal amount outstanding at any one time does not exceed $10,000,000.

Financing Documents:

Being presented for approval by the City Council and the Authority, as applicable, are the following documents:

Authorizing Resolution:

Authorize the City to enter into a Conveyance Agreement and Installment Purchase Contract to secure interim funding in an amount not to exceed $10,000,000 and authorize certain other actions.

Conveyance Agreement:

The Conveyance Agreement will be entered into between the City and Banner Bank. City conveys the project to the Bank in exchange for payment of up to $10,000,000. The Bank immediately resells the Property to the City pursuant to the Installment Purchase Contract.

Installment Purchase Contract:

This agreement is between the City and Banner Bank establishing that the City will finance certain improvements to and provide working capital for the City’s industrial wastewater system. The City will pay the Installment Payments to the Bank to purchase such improvements. This agreement also contains covenants for the benefit of the Lender, including a covenant to set rates and charges in the future at levels that are sufficient to repay the Loan, if necessary.

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Hilltop Securities Placement Agent Agreement:

Hilltop Securities Agreement with the City, which sets forth Hilltop Securities’ work to be performed for the 2024 Wastewater Interim Loan. Such fees set forth therein were previously approved by City Council.

Financing Schedule:

If City Council approves the resolution, City staff will work with the financing team to execute and close on the loan with Banner Bank. Below is a summary of the anticipated financing schedule:

November 18, 2024 – City Council considers approval of the loan and related documents November 19 – 22, 2024 – Finalize and execute closing documents November 26, 2024 – Close the Loan; City draws funds, as necessary How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

Explain: This project supports our vision by making improvements to the wastewater system to increase its capacity for residential and industrial developments Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Maintaining and improving the wastewater treatment plant enhances the community’s quality of life by providing for treatment and safe disposal of the City’s wastewater.

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

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

ALTERNATIVES
Alternative funding options are available and such alternatives were considered and were determined to be either more costly or unavailable to the City.

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BUDGET IMPACT
Upon closing of the 2024 Wastewater Interim Loan in late November, the City will initiate the first draw on the 2024 Wastewater Interim Loan to pay costs of issuance related to the financing in an amount estimated to be $132,000. The City anticipates using Sewer Fund Net Revenues to repay such financing costs.

Assuming a 4-month reimbursement timeline and the estimate construction draw schedule, it is estimated that total interest cost could be $328,215 during construction of the project and it is also estimated that the City’s largest principal balance outstanding amount on the 2024 Wastewater Interim Loan reaches $7,704,799. The repayment of such principal amount together with estimated interest cost could be $8,033,014.

The actual amount outstanding and actual interest may be more or less, depending on the SWRCB reimbursement timing. SWCRB reimbursements are pledged to the repayment of the 2024 Wastewater Interim Loan, along with the City’s Sewer Fund Net Revenues. It is anticipated that the City’s Sewer Fund Net revenues will be applied towards interest repayment and financing costs associated with the 2024 Wastewater Interim Loan and that SWCRB reimbursements applied towards the principal balance.

CONCLUSION
Staff recommends that the City Council Adopt Resolution No. 2024-67, A Resolution of the City Council of the City of Gonzales Approving a Conveyance Agreement and an Installment Purchase Contract, Making Certain Determinations Relating Thereto; and Authorizing Certain Other Actions in Connection Therewith
Attachments:

1. Resolution No. 2024-67

2. Exhibit A - Conveyance Agreement

3. Exhibit B - Installment Purchase Agreement

4. Exhibit C - Hilltop Securities Placement Agent Agreement

5. Exhibit D - Banner Bank Term Sheet

6. Powerpoint presentation
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4865-6073-9568.4
RESOLUTION NO. 2024-67

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

APPROVING A CONVEYANCE AGREEMENT AND AN INSTALLMENT PURCHASE CONTRACT, MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND

AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of Gonzales (the “City”), a municipal corporation and general law city in Monterey County, California, desires to finance certain capital improvements for and provide working capital for its Industrial Wastewater System (the “Project”), pending delays in receiving reimbursements from the State of California under a State Revolving Fund loan; and WHEREAS, the City is authorized to sell and purchase its property to finance public capital improvements, including those improvements constituting the Project; and WHEREAS, to finance the Project, the City desires to enter into a Conveyance Agreement, between the City and Banner Bank (the “Lender”), pursuant to which the City will sell the Project to the Lender in return for certain funds, which the City will use to acquire, construct and install the Project; and
WHEREAS, to finance the Project, the City has determined to enter into an Installment Purchase Contract, between the City and the Lender, pursuant to which the City will repurchase the Project from the Lender; and
WHEREAS, under and pursuant to such Installment Purchase Contract, the City will be obligated to make certain installment payments to the Lender; and WHEREAS, the City Council has been presented with the form of each document that is referred to herein relating to the financing that is contemplated hereby, and the City Council has examined and approved each document and desires to authorize and direct the execution of such documents and the consummation of such financing; and
WHEREAS, all acts, conditions and things that are required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the financing that are authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner and upon the terms herein provided.

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

Section 1. Recitals True and Correct. The foregoing recitals are true and correct and are a substantive part of this Resolution.

Section 2. Approval of Conveyance Agreement. The form of Conveyance Agreement attached hereto as Exhibit A and incorporated herein by this reference is hereby approved. The Mayor of the City, the City Manager of the City, the Finance Director of the City and the Public Packet Pg. 50
Attachment: Resolution No. 2024-67 (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) Works Director/City Engineer of the City, or any other officers duly designated by the City (each, an “Officer” and collectively, the “Officers”) are hereby authorized and directed, for and on behalf of the City, to execute, acknowledge and deliver the Conveyance Agreement, in substantially the form attached hereto, with such changes therein as such Officers may require or approve, with the advice and approval of the City Attorney and Kutak Rock LLP (“Special Counsel”), such approval to be conclusively evidenced by the execution and delivery thereof.

Section 3. Approval of Installment Purchase Contract. The form of Installment Purchase Contract attached hereto as Exhibit B and incorporated herein by this reference is hereby approved.

The Officers are hereby authorized and directed, for and on behalf of the City, to execute, acknowledge and deliver the Installment Purchase Contract, in substantially the form attached hereto, with such changes therein as such Officers may require or approve, with the advice and approval of the City Attorney and Special Counsel, such approval to be conclusively evidenced by the execution and delivery thereof. In connection therewith, the City approves the execution and delivery of the Installment Purchase Contract so long as the maturity does not exceed December 31, 2027 (including a 6-month extension subject to approval by the Lender), the interest rate with respect to the Installment Payments does not initially exceed 4.34% per annum (except in the event of default or taxability), and the total principal amount outstanding at any one time does not exceed $10,000,000.

Section 4. Approval of Placement Agent Agreement. The form of Placement Agent Agreement with Hilltop Securities Inc. attached hereto as Exhibit C and incorporated herein by this reference is hereby approved. The Officers are hereby authorized and directed, for and on behalf of the City, to execute, acknowledge and deliver the Placement Agent Agreement, in substantially the form attached hereto, with such changes therein as such Officers may require or approve, with the advice and approval of the City Attorney and Special Counsel, such approval to be conclusively evidenced by the execution and delivery thereof.

Section 5. Other Acts. The Officers and staff of the City are hereby authorized, empowered and directed, individually, to do any and all things, to execute and deliver any and all documents, including but not limited to a term sheet with the Lender (provided that the limitations set forth in Section 3 are not exceeded), funds control agreement or other agreement related to the establishment and maintenance of the Acquisition Fund (as defined in the Installment Purchase Contract), which in consultation with the City Attorney and Special Counsel, they may deem necessary or advisable in order to effectuate the purposes of this Resolution, and any and all such actions previously taken by such Officers or staff members are hereby ratified and confirmed.

Section 6. Special Services. Kutak Rock LLP is hereby appointed to serve as Special Counsel with respect to the Bonds, Hilltop Securities Inc. is hereby appointed to serve as Placement Agent and NHA Advisors, LLC, will serve as the City’s Municipal Advisor per its previously approved contract. Each of the Authorized Officers is further authorized to provide for payment for all other services, including a facility origination fee payable to the Lender and a fee payable to the Lender’s counsel, that are necessary to effect the matters that are described in this Resolution. Any one of the Authorized Officers is authorized to pay for the cost of such services and to enter into agreements as needed to engage such consultants.

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Attachment: Resolution No. 2024-67 (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 18th day of November 2024 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
____________________________
Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2024-67 (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 4859-8127-0512.2
__________________________________________________________________________

CONVEYANCE AGREEMENT
between the

CITY OF GONZALES
and

BANNER BANK
Dated as of November 1, 2024
___________________________________________________________________________

EXHIBIT A
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Attachment: Exhibit A - Conveyance Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 4859-8127-0512.2

CONVEYANCE AGREEMENT
THIS CONVEYANCE AGREEMENT, dated as of November 1, 2024 (as amended and supplemented hereafter, the “Conveyance Agreement”), between the CITY OF GONZALES, a municipal corporation that is duly organized and validly existing under the general laws of the State of California (the “City”), and BANNER BANK (including its successors and permitted assigns hereunder, the “Lender”);
R E C I T A L S:

WHEREAS, the City and the Lender desire to provide funds to finance the Project (as defined in the Installment Purchase Contract), to be repaid by installment purchase payments to be made by the City, as purchaser of the Project, to the Lender, as seller, pursuant to that certain installment purchase contract dated as of November 1, 2024 (the “Installment Purchase Contract”).

NOW, THEREFORE, in consideration of receipt of the amount of up to $10,000,000 by the City as the purchase price of the Project and of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree as follows:

Section 1. The City hereby sells, conveys and transfers to the Lender all of its right, title and interest in and to the Project, as well as any Alternate Project, if applicable under the Installment Purchase Contract, but only to the extent that the components of the Project and any Alternate Project may be legally transferred by the City, and the Lender hereby purchases, acquires and accepts from the City, the Project and any Alternate Project, subject to the obligation of the Lender to resell the Project and any Alternate Project to the City pursuant to the Installment Purchase Contract.

Section 2. The City hereby agrees to cooperate and provide further assurances to the Lender in order to accomplish the purposes of this Conveyance Agreement. The City hereby agrees to indemnify and hold the Lender harmless against any and all claims, losses, costs or damages as a result of the City’s conveyance and acquisition of the Project and any Alternate Project to the Lender as provided herein, or the acquisition of the Project and any Alternate Project pursuant to the Installment Purchase Contract.
(Signatures on the following page)
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IN WITNESS WHEREOF, the parties hereto have executed this Conveyance Agreement by their officers as of the date first above written.

CITY OF GONZALES
By:

Carmen Gil
City Manager
BANNER BANK, as Lender
By:

Authorized Officer
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-3662-4880.5

INSTALLMENT PURCHASE CONTRACT
between the

CITY OF GONZALES
and

BANNER BANK
Dated as of November 1, 2024

EXHIBIT B
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TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS .................................................................................................. 1 Section 1.01. Definitions. ............................................................................................ 1 ARTICLE II ACQUISITION OF THE PROJECT ................................................................ 7 Section 2.01. Acquisition of the Project...................................................................... 7 Section 2.02.Indemnification and Expenses of the Lender. ....................................... 9 Section 2.03.City to Acquire Project; Lender not Liable. .......................................... 9 Section 2.04. Disclaimer of the Lender. .................................................................... 10 Section 2.05. Acquisition Fund. ................................................................................ 10 ARTICLE III INSTALLMENT PAYMENTS, REVENUES AND ACCOUNTS.............. 10 Section 3.01. Payment of the Installment Payments. ................................................ 10 Section 3.02.Interest Component of the Installment Payments................................ 11 Section 3.03. Establishment of Accounts. ................................................................. 11 Section 3.04. Pledge of Net Revenues and Other Funds; Debt Service Fund........... 11 Section 3.05.Receipt and Deposit of Gross Revenues. ............................................ 12 Section 3.06. Establishment and Maintenance of Accounts for Gross Revenues; Use and Withdrawal of Gross Revenues. .......................... 13 Section 3.07.Reserve Fund. ...................................................................................... 14 Section 3.08.Investment of Funds. ........................................................................... 14 ARTICLE IV PARITY OBLIGATIONS............................................................................. 14 Section 4.01. Parity Obligations................................................................................ 14 ARTICLE V REPRESENTATIONS, COVENANTS AND WARRANTIES .................... 15 Section 5.01.Compliance with Installment Purchase Contract. ............................... 15 Section 5.02. Observance of Laws and Regulations. ................................................ 15 Section 5.03. Prosecution and Defense of Suits. ....................................................... 15 Section 5.04. Accounting Records and Statements. .................................................. 15 Section 5.05. Further Assurances. ............................................................................. 15 Section 5.06. Against Encumbrances. ....................................................................... 16 Section 5.07. Against Sale or Other Disposition of Property.................................... 16 Section 5.08. Against Competitive Facilities. ........................................................... 16 Section 5.09. Tax Covenants. .................................................................................... 16 Section 5.10. Maintenance and Operation of the Enterprise; Budgets...................... 17 Section 5.11. Payment of Claims............................................................................... 17 Section 5.12.Compliance with Contracts. ................................................................ 17 Section 5.13.Insurance.............................................................................................. 17 Section 5.14.Books and Accounts; Financial Statements. ....................................... 18 Section 5.15. Payment of Taxes and Compliance with Governmental Regulations. ......................................................................................... 19 Section 5.16. Amount of Rates and Charges............................................................. 19 Packet Pg. 57
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Section 5.17.Collection of Rates and Charges. ........................................................ 20 Section 5.18. Eminent Domain Proceeds. ................................................................. 20 Section 5.19.Release and Indemnification Covenants.............................................. 21 Section 5.20. Further Representations, Covenants and Warranties of the City. ....... 21 Section 5.21.Representations, Covenants and Warranties of the Lender................. 24 ARTICLE VI PREPAYMENT OF INSTALLMENT PAYMENTS................................... 24 Section 6.01. Prepayment. ......................................................................................... 24 Section 6.02. Method of Prepayment. ....................................................................... 25 Section 6.03. Security Deposit. ................................................................................. 25 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES .............................................. 26 Section 7.01. Events of Default and Events of Mandatory Acceleration; Acceleration of Maturities................................................................... 26 Section 7.02. Application of Funds Upon Default. ................................................... 27 Section 7.03. Other Remedies of the Lender............................................................. 28 Section 7.04. Non-Waiver. ........................................................................................ 28 Section 7.05.Remedies Not Exclusive...................................................................... 29 ARTICLE VIII MISCELLANEOUS ................................................................................... 29 Section 8.01. Liability of City Limited...................................................................... 29 Section 8.02.Benefits of Installment Purchase Contract Limited to Parties............. 29 Section 8.03. Successor Is Deemed Included In All References to Predecessor. ..... 29 Section 8.04. Waiver of Personal Liability................................................................ 29 Section 8.05. Article and Section Headings, Gender and References....................... 30 Section 8.06. Partial Invalidity. ................................................................................. 30 Section 8.07. Assignment. ......................................................................................... 30 Section 8.08.California Law..................................................................................... 30 Section 8.09. Notices. ................................................................................................ 30 Section 8.10 Judicial Reference. ............................................................................... 31 Section 8.11. Effective Date...................................................................................... 31 Section 8.12. Execution in Counterparts. .................................................................. 31 Section 8.13. Amendments........................................................................................ 32 EXHIBIT A – INSTALLMENT PAYMENT SCHEDULE...........................................................A-1 EXHIBIT B – DESCRIPTION OF THE PROJECT ......................................................................B-1 EXHIBIT C – FORM OF ACQUISITION FUND REQUISITION...............................................C-1 Packet Pg. 58
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INSTALLMENT PURCHASE CONTRACT
This INSTALLMENT PURCHASE CONTRACT, dated as of November 1, 2024 (as amended and supplemented hereafter, the “Installment Purchase Contract”), between the CITY OF GONZALES, a municipal corporation that is duly organized and validly existing under the general laws of the State of California (the “City”), and BANNER BANK, a Washington state-chartered bank (including its successors and permitted assigns hereunder, the “Lender”); W I T N E S S E T H:

WHEREAS, the City is authorized by the laws of the State of California to purchase, or lease, or otherwise acquire, hold and enjoy, and lease or dispose of, real and personal property of every kind within or without the City through the execution of installment purchase contracts; and WHEREAS, the City proposes to finance certain improvements to and provide working capital for the City’s industrial wastewater system, as more particularly described in Exhibit B hereto (the “Project”), pending delays in receiving reimbursements from the State of California under the SRF Obligation (as such term is defined herein); and
WHEREAS, in order to finance the Project, the City has entered into a Conveyance Agreement, dated as of the date hereof, pursuant to which the City has sold the Project to the Lender, but only to the extent that the components of the Project could be legally transferred by the City; and WHEREAS, the City proposes to purchase the Project pursuant to this Installment Purchase Contract; and
WHEREAS, the City has determined that it is in the best interests of the City, and it is necessary and proper for City purposes, that the City acquire the Project from the Lender in the manner described herein, and that the City pay the Lender for the costs of acquiring the Project in the manner described herein; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Installment Purchase Contract do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Installment Purchase Contract;

NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND OF THE MUTUAL

AGREEMENTS AND COVENANTS CONTAINED HEREIN AND FOR OTHER VALUABLE CONSIDERATION, THE PARTIES HERETO DO HEREBY AGREE AS FOLLOWS:

ARTICLE I

DEFINITIONS
Section 1.01. Definitions.

Unless the context otherwise requires, the terms defined in this Section 1.01 shall for all purposes hereof, and of any amendment hereof, and of any opinion or report or other document Packet Pg. 59
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mentioned herein or therein have the meanings defined herein, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein. “Acquisition,” “Acquire” or “Acquired” means, with respect to the Project or the Enterprise, the acquisition, installation or perfection of an ownership or capacity interest in the Project or the Enterprise, or the construction, financing or ownership of the Project or the Enterprise, including payment of Delivery Costs.
“Acquisition Costs” with respect to the Project means the contract price paid or to be paid for the Acquisition of the Project.
“Acquisition Fund” means the fund established and maintained by the City with the Lender, as described in Section 2.05.
“Advance” means each advance made by the Lender, pursuant to this Installment Purchase Contract, to the City, in accordance with the procedures set forth in this Installment Purchase Contract, on the corresponding Draw Down Date, subject to the terms and conditions of this Installment Purchase Contract.
“Available Commitment” means, on the Closing Date, an initial amount equal to $10,000,000 less the initial Advance of $_____ on the Closing Date, and thereafter as adjusted from time to time as follows: (a) downward in an amount equal to any Advance (other than the initial Advance) made hereunder; (b) upward in an amount equal to any payment or prepayment of the unpaid principal balance of the Installment Payments; and (c) downward to zero upon termination of the Commitment in accordance with the terms hereof; provided that in no event shall the Available Commitment exceed $10,000,000.
“Alternate Project” means an alternate project designated by the City pursuant to Section 2.01 hereof.
“Business Day” means any day other than a Saturday, Sunday or legal holiday or a day on which banks are authorized to be closed for business in Washington, California and/or New York. “Closing Date” means November 26, 2024.
“Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
“Commitment” means the obligation of the Lender, pursuant to this Installment Purchase Contract, to make future Advances of the unfunded portion of the Available Commitment, subject to the terms and conditions of this Installment Purchase Contract. “Commitment Termination Date” means the earliest to occur of: (a) May 26, 2027, subject, upon the City’s written request received by the Lender by April 26, 2027, to a 6-month extension in the Lender’s sole discretion to November 26, 2027; and (b) the date that the Available Commitment equals $10,000,000, provided that the City has delivered written notice to the Lender of its intent to terminate the Commitment.

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“Conveyance Agreement” means that Conveyance Agreement, dated as of November 1, 2024, between the City and the Lender, as amended and supplemented. “Debt Service” means, for any Fiscal Year, the sum of: (a) the Installment Payments (except to the extent that interest has been fully capitalized and is invested in Federal Securities which mature at times and in such amounts as are necessary to pay the interest to which such amounts are pledged) required to be paid hereunder during such Fiscal Year; (b) the interest falling due during such Fiscal Year on all Parity Obligations (which are outstanding under the documents or agreements pursuant to which they were issued), assuming that all outstanding serial Parity Obligations are retired as scheduled and that all outstanding term Parity Obligations are redeemed from sinking fund payments as scheduled (except to the extent that such interest has been fully capitalized and is invested in Federal Securities which mature at times and in such amounts as are necessary to pay the interest to which such amounts are pledged); (c) the principal amount of all serial Parity Obligations (which are outstanding under the documents or agreements pursuant to which they were issued) falling due by their terms during such Fiscal Year; and (d) the minimum amount of term Parity Obligations (which are outstanding under the documents or agreements pursuant to which they were issued) required to be paid or called and redeemed during such Fiscal Year, together with the redemption premiums, if any, thereon; provided that, whenever interest as described herein accrues at other than a fixed rate, such interest shall be assumed to be a rate equal to the greater of: (i) the actual rate on the date of calculation, or if the Parity Obligations are not yet outstanding, the initial rate (if established and binding); (ii) if the Parity Obligations have been outstanding for at least twelve months, the average rate over the twelve months immediately preceding the date of calculation; and (iii) (x) if interest on the Parity Obligations is excludable from gross income under the applicable provisions of the Code, the most recently published SIFMA Index (or comparable index if no longer published) plus fifty (50) basis points; or (y) if interest is not so excludable, the interest rate on direct U.S. Treasury Obligations with comparable maturities, plus fifty (50) basis points.
“Debt Service Fund” means the fund established in Section 3.04 hereof. “Debt Service Payments” mean the payments of Debt Service. “Default” means any of the events specified in Section 7.01 which with the passage of time, the giving of notice or any other condition, would constitute an Event of Default. “Default Rate” means 6.34% per annum.
“Delivery Costs” means all items of expense directly or indirectly payable by or reimbursable to the City or the Lender relating to the financing of the Project, including but not limited to filing costs, settlement costs, printing costs, reproduction and binding costs, initial fees and charges of the Lender and its counsel, financing discounts, California Debt Investment Advisory Commission fees, legal fees and charges, financial and other professional consultant fees, and charges and fees in connection with the foregoing.
“Determination of Taxability” means any determination, decision or decree by the Commissioner of Internal Revenue, or any City Director of Internal Revenue, or any court of competent jurisdiction, to the effect that: (a) interest paid or to be paid to the Lender hereunder is or will be includable for federal income tax purposes in the gross income of the Lender, but excluding the inclusion of interest as an item of tax preference for purposes of the calculation of an alternative Packet Pg. 61
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minimum tax imposed on the Lender; or that (b) an Event of Taxability shall have occurred; provided, however, that the City shall have the opportunity to take such remedial action necessary to restore the tax-exempt status of the interest component of Installment Payments under this Installment Purchase Contract specifically afforded to it in such determination, decision or decree so long as such remedial action is promptly commenced by the City and in no event later than thirty (30) days after receipt of such determination, decision or decree. A Determination of Taxability also shall be deemed to have occurred on the date when the City files any statement, supplemental statement, or other tax schedule, return or document, which discloses that an Event of Taxability shall have occurred. “Draw Down Date” means each date for funding an Advance. “Enterprise” means the City’s municipal and industrial wastewater collection, treatment and disposal system, including all facilities, works, properties and structures of the City for the treatment, transmission and disposal of wastewater, including all contractual rights to easements, rights-of-way and other works, property or structures necessary or convenient for such facilities, together with all additions, betterments, extension and improvements to such facilities or any part thereof hereafter acquired or constructed.
“Environmental Regulations” means all Laws and Regulations, now or hereafter in effect, with respect to Hazardous Materials, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. Section 9601, et seq.) (together with the regulations promulgated thereunder, “CERCLA”), the Resource Conservation and Recovery Act, as amended (42 U.S.C. Section 6901, et seq.) (together with the regulations promulgated thereunder, “RCRA”), the Emergency Planning and Community Right-to-Know Act, as amended (42 U.S.C. Section 11001, et seq.) (together with the regulations promulgated thereunder, “Title III”), the Clean Water Act, as amended (33 U.S.C. Section 1321, et seq.) (together with the regulations promulgated thereunder, “CWA”), the Clean Air Act, as amended (42 U.S.C. Section 7401, et seq.) (together with the regulations promulgated thereunder, “CAA”) and the Toxic Substances Control Act, as amended (15 U.S.C. Section 2601 et seq.) (together with the regulations promulgated thereunder, “TSCA”), and any state or local similar Laws and Regulations and any so-called local, state or federal “superfund” or “superlien” law and any other applicable state, local or federal environmental laws or regulations.
“Event of Default” means an event of default described in Section 7.01. “Event of Taxability” means, with respect to the Installment Purchase Contract: (a) the application of the proceeds of the purchase price of the Project pursuant to the Conveyance Agreement in such manner that the Installment Purchase Contract becomes an “arbitrage bond” within the meaning of Code Sections 103(b)(2) and 148, and with the result that interest component of the Installment Payments is or becomes includable in a recipient’s gross income (as defined in Code Section 61); or (b) if as the result of any act, failure to act or use of the proceeds of the purchase price of the Project pursuant to the Conveyance Agreement or any misrepresentation or inaccuracy in any of the representations, warranties or covenants contained in the Installment Purchase Contract by the City the interest component of Installment Payments is or becomes includable in a recipient’s gross income (as defined in Code Section 61); and (c) with respect to (a) and (b), the City does not undertake any remedial action afforded to it by the Internal Revenue Service.

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“Federal Securities” means direct obligations of (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States), or obligations the timely payment of the principal of and interest on which are fully and unconditionally guaranteed by, the United States of America.
“Finance Officer” means the City Manager or Finance Director of the City. “Fiscal Year” means the period commencing on July 1 of each year and terminating on June 30 of the following year, or any other annual accounting period hereafter selected and designated by the City as its Fiscal Year in accordance with applicable law. “Generally Accepted Accounting Principles” means: (a) the uniform accounting and reporting procedures prescribed by the California State Controller or his or her successor for cities in the State of California; or (b) failing the prescription of such procedures, generally accepted accounting principles as presented and recommended by the American Institute of Certified Public Accountants or its successor, or by the National Council on Governmental Accounting or its successor, or by any other generally accepted authority on such principles.
“Governmental Loan” means a loan from the State of California or the United States of America, acting through any of its agencies, to finance improvements to the Enterprise, and the obligation of the City to make payments to the State of California or the United States of America under the loan agreement memorializing said loan on a parity basis with the payment of Installment Payments.
“Gross Revenues” means all gross income and revenue received or receivable by the City from the ownership and operation of the Enterprise, calculated in accordance with Generally Accepted Accounting Principles, including all rates, fees and charges (including connection fees and property tax revenues) received by the City for wastewater service and all other income and revenue howsoever derived by the City from the Enterprise or arising from the Enterprise, together with reimbursements from the California State Water Resources Control Board under the SRF Loan; provided, however, that: (a) any specific charges levied for the express purpose of reimbursing others for all or a portion of the cost of the acquisition or construction of specific facilities; (b) grants which are designated by the grantor for a specific purpose and are therefore not available for other purposes; and (c) customers’ deposits or any other deposits subject to refund until such deposits have become the property of the City, are not Gross Revenues and are not subject to the lien of the Installment Purchase Contract. Gross Revenues shall include amounts on deposit in the Revenue Fund which have been previously released from the pledge and lien of this Installment Purchase Contract. “Independent Certified Public Accountant” means any certified public accountant or firm of certified public accountants duly licensed and entitled to practice, and practicing as such, under the laws of the State of California, appointed and paid by the City, and each of whom: (a) is in fact independent and not under the domination of the City; (b) does not have a substantial financial interest, direct or indirect, in the operations of the City; and (c) is not connected with the City as a City Council member, officer or employee of the City, but may be regularly retained to audit the accounting records of and make reports thereon to the City.
“Independent Engineer” means any registered engineer or firm of engineers of national reputation generally recognized to be well qualified in engineering matters relating to systems similar Packet Pg. 63
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to the Enterprise, appointed and paid by the City, and who or each of whom: (a) is in fact independent and not under the domination of the City; (b) does not have a substantial financial interest, direct or indirect, in the City; and (c) is not connected with the City as a City Council member, officer or employee of the City, but may be regularly retained to make reports to the City. “Independent Financial Consultant” means any financial consultant or firm of such consultants of national reputation generally recognized to be well qualified in financial matters relating to systems similar to the Enterprise, appointed and paid by the City, and who, or each of whom: (a) is in fact independent and not under the control of the City; (b) does not have a substantial financial interest, direct or indirect, in the City; and (c) is not connected with the City as a City Council member, officer or employee of the City, but may be regularly retained to make reports to the City. “Installment Payments” means the installment payments of principal and interest scheduled to be paid by the City hereunder.
“Insurance Consultant” means any nationally recognized independent actuary, insurance company or broker who has actuarial personnel knowledgeable with respect to insurance carried by, required for and available to municipalities operating facilities similar to the Enterprise, including a pooled self-insurance program in which premiums are established on the basis of the recommendation of an actuary of national reputation.
“Interest Payment Date means the first day of each calendar month, commencing on January 1, 2025.
“Laws and Regulations” means federal, regional, state and local laws, statutes, rules, ordinances, regulations, codes, licenses, authorizations, decisions, injunctions, interpretations, orders or decrees of any court or other governmental authority having jurisdiction as may be in effect from time to time.
“Last Disbursement Request Date” means the Business Day which is ten (10) Business Days immediately prior to the day of the requested Disbursement and at least ten (10) Business Days immediately preceding the Commitment Termination Date.
“Maintenance and Operation Costs” of the Enterprise means the reasonable and necessary costs and expenses paid by the City for maintaining and operating the Enterprise, as determined in accordance with Generally Accepted Accounting Principles, including but not limited to: (a) the reasonable expenses of management and repair and other costs and expenses necessary to maintain and preserve the Enterprise in good repair and working order; and (b) administrative costs of the City attributable to the Enterprise and the financing thereof; but excluding: (x) depreciation, replacement and obsolescence charges or reserves therefor; (y) in any Fiscal Year prior to setting aside an amount equal to the Installment Payments for such Fiscal Year, capital expenditures other than as set forth in subsection (a) above; and (z) amortization of intangibles or other bookkeeping entries or a similar nature.
“Material Adverse Effect” means an event or occurrence which adversely affects in a material manner: (a) the assets, liabilities, condition (financial or otherwise), business, facilities or operations of the City; (b) the ability of the City to carry out its business in the manner conducted as of the date of this Installment Purchase Contract or to meet or perform its obligations under this Installment Purchase Packet Pg. 64
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Contract on a timely basis; (c) the validity or enforceability of the Installment Purchase Contract; or (d) the exclusion of the interest component of the Installment Payments from gross income for federal income tax purposes or the exemption of such interest for state income tax purposes. “Maximum Annual Debt Service” means the largest annual Debt Service due hereunder and on any Parity Obligations during the period from the date of such determination through the date which is five years after the date of such determination.
“Net Proceeds” means, when used with respect to any insurance or condemnation award, the proceeds from such insurance or condemnation award remaining after payment of all reasonable expenses (including attorneys’ fees) incurred in the collection of such proceeds. “Net Revenues” means, for any period, all of the Gross Revenues during such period less all of the Maintenance and Operation Costs during such period. “Outstanding” when used as of any particular time with reference to this Installment Purchase Contract, means all Installment Payments except Installment Payments paid or deemed to have been paid within the meaning of Article VI.
“Parity Obligations” means the SRF Obligation and all bonds, notes, loan agreements, installment sale agreements, leases or other obligations of the City payable from and secured by a pledge of and lien upon any of the Net Revenues incurred on a parity with the payment of the Installment Payments pursuant to Section 4.01.
“Project” means the improvements to the Enterprise described in Exhibit B hereto. “Qualified Investments” means any investment that is a legal investment under the laws of the State of California for the moneys proposed to be invested therein. “Revenue Fund” means the fund, funds, account or accounts maintained by the City into which it deposits Gross Revenues.
“SRF Obligation” means the Construction Installment Sale Agreement Separate Industrial Wastewater System (Project No. C-06-8574-110; Agreement No. D2301008), dated July 12, 2024, by and between the City and the California State Water Resources Control Board, as amended from time to time.

ARTICLE II

ACQUISITION OF THE PROJECT
Section 2.01. Acquisition of the Project.

The Lender agrees to use or permit the use of the proceeds received by the City pursuant to the Conveyance Agreement for the payment, as herein provided, of the costs and expenses of the Acquisition of the Project and the expenses incidental thereto (including reimbursement to the City for any such costs or expenses paid by it for the account of the Lender, including costs and expenses paid by the City prior to the date hereof).

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Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 8 4857-3662-4880.5
Pursuant to the Conveyance Agreement, the City agrees to sell to the Lender all of its right, title and interest in and to the Project, but only to the extent that the components of the Project may be legally transferred by the City, and the Lender agrees to purchase, from the City, from time to time components of the Project on the Draw Down Dates, in the manner and in accordance with the provisions of this Installment Purchase Contract. In consideration for the Installment Payments as set forth in Article III, the Lender agrees to sell, and hereby sells, to the City, and the City agrees to purchase, and hereby purchases, from the Lender, from time to time components of the Project on the applicable Draw Down Dates in the manner and in accordance with the provisions of this Installment Purchase Contract. On each Draw Down Date, the Lender shall provide an updated draw down schedule to be attached as Exhibit A hereto, which draw down schedule shall be deemed to be an amendment to this Installment Purchase Contract.

Subject to the terms and conditions of this Installment Purchase Contract and in reliance upon the representations, warranties and agreements set forth herein, including without limitation satisfaction of the conditions set forth below, the Lender agrees to make Advances to the City, on each Draw Down Date occurring after the Closing Date and prior to the Commitment Termination Date, not to exceed at any time outstanding the then-outstanding Available Commitment, in accordance with the procedures set forth below. The obligation of the Lender to make an Advance on any date is subject to the following conditions precedent: (a) all representations and warranties of the City set forth in this Installment Purchase Contract are true and correct as though made as of the date of such Advance, no Default or Event of Default shall have occurred and be continuing as of the date of such Advance, and no event or change shall be in effect or shall have occurred as of the date of such Advance that could reasonably be expected to have a Material Adverse Effect; (b) the Commitment and the obligation of the Lender to make Advances hereunder shall not have terminated pursuant to the terms of this Installment Purchase Contract; and (c) the aggregate amount of the Advance does not exceed the Available Commitment.

Unless the City shall have otherwise previously advised the Lender in writing, the City shall be deemed to represent and warrant on each Draw Down Date that each such condition is satisfied on such Draw Down Date.

Subject to satisfaction of the conditions precedent set forth above, the Lender shall fund each Advance on the corresponding Draw Down Date into the Acquisition Fund.

Upon funding of each Advance, the City agrees to sell to the Lender, and the Lender agrees to purchase from the City, the component of the Project, including any Alternate Project, if applicable, with respect to the related Draw Down Date.

The City hereby covenants to use the proceeds received from the Lender pursuant to the Conveyance Agreement to pay for the costs and expenses of the Project, including any Alternate Project, if applicable. The City may change the specifications of the Project, so long as such change does not substantially alter the nature of the Project; provided, however, that the City and the Lender, in their sole discretion, may jointly designate an Alternate Project and upon such designation, such Alternate Project shall be deemed part of the Project for the purposes of this Installment Purchase Contract and the Conveyance Agreement. In the event that an Alternate Project is designated, the City shall certify in writing to the Lender that Acquisition Costs shall not materially increase or decrease as a result from such change. In the event that Acquisition Costs shall materially increase as a result of the designation of an Alternate Project, prior to designating such Alternate Project the City shall either deposit in the Acquisition Fund an amount sufficient to pay such increase, or shall certify in writing to Packet Pg. 66
Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 9 4857-3662-4880.5
the Lender that funds sufficient to pay such increase in Acquisition Costs are otherwise available to the City.

All right, title and interest in each component of the Project purchased and sold in connection with an Advance shall vest in the City immediately upon funding of such Advance. Such vesting shall occur without further action by the Lender or City and the Lender shall, if requested by the City, if necessary, to assure such automatic vesting, deliver any and all documents required to assure such vesting at the cost of the City.

The Lender further agrees to pay all Delivery Costs payable by the City, on behalf of the City, on the Closing Date in the amount of $_____, from the proceeds of the first Advance hereunder, including an irrevocable origination fee of $25,000 (to be retained by the Lender), Lender’s counsel’s fee of $15,000, the City’s Special Counsel’s fee of $25,000, the Placement Agent’s fee of $25,000 and the City’s Municipal Advisor’s fee of $____.

In the event that the Lender fails to observe or perform any material agreement, condition, covenant or term contained herein which is required to be observed or performed by it, the City, upon thirty (30) days prior written notice to the Lender, may institute such action or proceeding against the Lender as the City may deem necessary to compel the observance or performance of such agreement, condition, covenant or term, or to recover damages for the nonobservance or nonperformance thereof; provided, however, that the City shall have no right to terminate this Installment Purchase Contract as a remedy to such failures. The City may, at its own cost and expense and in its own name or in the name of the Lender, prosecute or defend any action or proceeding or take any other action involving third persons which the City deems reasonably necessary in order to protect or secure its rights hereunder, and in such event the Lender agrees to cooperate fully with the City and to take all action necessary to effect the substitution of the City for the Lender in any action or proceeding if the City shall so request.

Section 2.02. Indemnification and Expenses of the Lender.

In addition to the provisions of Section 5.19 hereof, to the extent permitted by law, the City does hereby assume liability for, and agrees to defend, indemnify, protect, save and keep harmless the Lender and its directors, officers and employees and its successors and assigns from and against any and all liabilities, obligations, losses, damages (including consequential damages incurred by others), taxes and impositions, penalties, fines, claims, actions, suits, costs and expenses and disbursements (including legal fees and expenses (to include outside counsel fees and all allocated costs of the Lender’s in-house counsel to the extent permissible)) of whatsoever kind and nature imposed on, asserted against or incurred or suffered by the Lender or its directors, officers or employees or its successors and assigns in any way relating to or arising out of the purchase or Acquisition of the Project or the City’s use thereof, the execution and delivery or performance hereof or the assignment hereof (except with respect to any representations and warranties made by the Lender therewith) or any other agreements related thereto, or the enforcement of any of the terms thereof.

Section 2.03. City to Acquire Project; Lender not Liable.

The City shall cause the Acquisition of the Project to be completed as soon as is reasonably practicable and in accordance with this Installment Purchase Contract and any applicable requirements of governmental authorities and law. The Lender and its directors, officers and employees shall not be Packet Pg. 67
Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 10 4857-3662-4880.5
liable to the City or to any other party whomsoever for any death, injury or damage that may result to any person or property by or from any cause whatsoever in, on, or about or relating to the Project, and in no event shall the Lender be liable for any incidental, indirect, special or consequential damage in connection herewith or arising hereunder.

Section 2.04. Disclaimer of the Lender.

The City acknowledges and agrees that the Lender makes no representation or warranty, express or implied, as to the Enterprise or the Project, except as expressly set forth in this Installment Purchase Contract. The City acknowledges that all risks relating to the Project or the transactions contemplated hereby or by the Conveyance Agreement, are to be borne by the City, and the benefits of any and all implied warranties and representations of the Lender are hereby waived by the City.

Section 2.05. Acquisition Fund.

The City hereby agrees to establish and maintain, in an account held by the Lender, the Acquisition Fund until the completion of the Acquisition of the Project. On the Closing Date, the first Advance in the amount of $_____ shall be deposited into the Acquisition Fund. The City covenants that the Acquisition Fund shall be maintained and invested in Qualified Investments. The City hereby grants to the Lender a first priority security interest in the Acquisition Fund.

ARTICLE III

INSTALLMENT PAYMENTS, REVENUES AND ACCOUNTS
Section 3.01. Payment of the Installment Payments.

The total principal amount of the Installment Payments owed and to be paid by the City to the Lender hereunder for the Acquisition of the Project is $10,000,000 (or such lesser amount advanced by the Lender to the City hereunder), plus interest thereon. The interest rate applicable to the outstanding amount of each Advance, including, without limitation, the initial Advance made on the Closing Date, shall be 4.34% per annum; provided that, upon an Event of Default or a Determination of Taxability, such interest rate shall automatically, without any further action by the Lender, be increased to the Default Rate.

The Installment Payments shall, subject to any rights of prepayment of the City provided in Article VI, be due in installments in the amounts and on the dates described in Exhibit A attached hereto (as amended pursuant to Section 2.01 hereof), which amounts shall be due in full on the Commitment Termination Date. The City shall request Advances on any Business Day prior to the Commitment Termination Date in accordance with procedures established by the Lender, which requests shall be in the form set forth in Exhibit C. The Lender shall maintain a schedule of Advances paid to or on behalf of the City in satisfaction of City Advance requests, which schedule shall be made available to the City upon reasonable notice.

Each Installment Payment shall be payable to the Lender in accordance with the terms hereof and at the times required by this Section 3.01 in lawful money of the United States of America. In the event that the City fails to make any of the payments required to be made by it under this Section 3.01, such payment shall continue as an obligation of the City until such amount shall have been fully paid and the City agrees to pay the same with the stated interest thereon at the rate set forth in the preceding Packet Pg. 68
Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 11 4857-3662-4880.5
paragraph. All Installment Payments received by the Lender shall be applied first to interest accruing to the date of such payment and then to principal.

Subject to Section 8.01 hereof, the obligation of the City to make the Installment Payments is absolute and unconditional, whether or not the Project shall be acquired, and until such time as all Installment Payments shall have been fully paid (or provision for the payment thereof shall have been made pursuant to Article VI hereof), the City will not, under any circumstances, discontinue, abate or suspend any Installment Payments required to be made by it under this Section 3.01 when due, whether or not the Enterprise or any part thereof is operating or operable or has been completed, or whether or not the Enterprise is condemned, damaged, destroyed or seized or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, and such payments shall not be subject to reduction whether by offset, counterclaim, defense, recoupment, abatement, suspension, deferment or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement or covenant contained herein for any cause whatsoever.

Section 3.02. Interest Component of the Installment Payments.

The Installment Payments shall bear interest at the rate described in the first paragraph of Section 3.01 from the date of each Advance until the payment of the principal thereof and the prepayment premiums, if any, thereon, shall have been made or provided for in accordance with the provisions of Article VI hereof, whether at maturity, upon prepayment or otherwise. Interest accrued on the Installment Payments from the Closing Date and from each Interest Payment Date to, but not including, the next succeeding Interest Payment Date shall be paid on each such succeeding Interest Payment Date and shall be computed on the basis of a year of 360 days and twelve 30-day months. In the event of an Event of Default or a Determination of Taxability hereunder, the interest component of the portion of the Installment Payment shall be calculated based on the Default Rate.

Section 3.03. Establishment of Accounts.

The funds and accounts and flow of funds set forth in this Article III are hereby established and shall control to the extent inconsistent with any other terms of this Installment Purchase Contract.

Section 3.04. Pledge of Net Revenues and Other Funds; Debt Service Fund.

The City hereby irrevocably pledges all of the Net Revenues to the punctual payment of the Installment Payments and such Net Revenues, except as otherwise permitted herein, shall not be used for any other purpose while any of the Installment Payments are due hereunder. This pledge shall constitute: (i) a first lien on the reimbursements from the California State Water Resources Control Board under the SRF Obligation for the payment of the Installment Payments; and (ii) a first lien on the Net Revenues other than reimbursements from the California State Water Resources Control Board under the SRF Obligation for the payment of the Installment Payments and payments of all Parity Obligations, all in accordance with the terms hereof and thereof. No filing, registering, recording or publication of this Installment Purchase Contract is required to establish such pledges hereunder or to perfect, protect or maintain such liens created hereby on the Net Revenues.

All Installment Payments shall be transferred by the City from the Revenue Fund to the Debt Service Fund, which fund the City hereby agrees to establish and maintain so long as any Installment Packet Pg. 69
Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 12 4857-3662-4880.5
Payments are due hereunder, on or before the applicable Interest Payment Date. Such payments shall be held in trust by the City under the terms hereof.

All of the reimbursements from the California State Water Resources Control Board under the SRF Obligation received by the City shall be deposited in the Prepayment Account and applied to the optional prepayment of unpaid principal balance of the Installment Payments pursuant to subsection (b) and Article VI below.

Within the Debt Service Fund, the City shall establish a Debt Service Account and a Prepayment Account. Installment Payments made by the City shall be deposited in the Debt Service Account. Such payments shall be net of amounts already on deposit therein that are in excess of the amount required to accumulate therein pursuant to Section 3.01. The City shall transfer the money contained in the Debt Service Account and the Prepayment Account at the following respective times in the following respective accounts in the following order of priority in the manner hereinafter provided, each of which accounts the City hereby agrees to establish and maintain so long as any Installment Payments are due hereunder, and the money in each of such accounts shall be disbursed only for the purposes and uses hereinafter authorized:
(a) Debt Service Account. All moneys in the Debt Service Account shall be used and withdrawn by the City solely for the purpose of paying Installment Payments and principal of and interest on any Parity Obligations on each Interest Payment Date or mandatory redemption dates, as applicable, without preference or priority, and in the event of any insufficiency of such moneys, ratably without any discrimination or preference. The City shall be entitled to receive as a credit against Installment Payments an amount equal to the amount of any balance contained in the Debt Service Account prior to the Interest Payment Date for such Installment Payments (excluding money designated or necessary for the payment of Parity Obligations). (b) Prepayment Account. The City, on any optional prepayment date, shall deposit in the Prepayment Account moneys to accomplish any such optional prepayment. All money in the Prepayment Account shall be used and withdrawn by the City solely for the purpose of paying the Installment Payment to be optionally prepaid on their respective prepayment dates.

Section 3.05. Receipt and Deposit of Gross Revenues.

The City covenants and agrees that all Gross Revenues, when and as received, will be received and held by the City in trust hereunder and will be deposited by the City in the Revenue Fund and will be accounted for through and held in trust in the Revenue Fund; provided that the City may withdraw such amounts in the Revenue Fund as may be necessary to make refunds for amounts paid in advance for services provided by the Enterprise, which such service was not thereafter made available or provided. All Net Revenues, whether held by the City as trustee or deposited with the Finance Officer, shall nevertheless be disbursed, allocated and applied solely to the uses and purposes hereinafter in this Article III set forth, and shall be accounted for separately and apart from all other money, funds, accounts or other resources of the City.

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Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 13 4857-3662-4880.5
Section 3.06. Establishment and Maintenance of Accounts for Gross Revenues; Use and Withdrawal of Gross Revenues.

The City covenants and agrees that all Gross Revenues, when and as received, will be received and held by the City in trust for the benefit of the Lender and payments with respect to Parity Obligations, and will be deposited by the City in the Revenue Fund (which the City hereby covenants and agrees to maintain so long as any Installment Payments are due hereunder) and will be accounted for and held in trust for the benefit of the Lender and for payments with respect to Parity Obligations.

All Gross Revenues shall be disbursed, allocated and applied solely to the uses and purposes set forth in this Article III.

All Gross Revenues in the Revenue Fund shall be set aside by the City or deposited by the City with the purchasers, trustee or fiscal agent with respect to Parity Obligations, as the case may be, as follows and in the following order of priority:
(1) Maintenance and Operation Costs of the Enterprise. In order to carry out and effectuate the pledge and lien contained herein, the City agrees and covenants to pay all Maintenance and Operation Costs of the Enterprise (including amounts reasonably required to be set aside in contingency reserves for Maintenance and Operation Costs of the Enterprise, the payment of which is not then immediately required) from the Revenue Fund as they become due and payable. (2) Debt Service Funds. Installment Payments payable pursuant to Section 3.01 hereof and all other payments relating to principal and interest on or with respect to Parity Obligations, shall be paid in accordance with the terms hereof and of such Parity Obligations, without preference or priority, and in the event of any insufficiency of such moneys, ratably without any discrimination or preference.
(3) Reserve Funds. Payments required to replenish debt service reserve funds, if any, established for Parity Obligations shall be made in accordance with the terms of such Parity Obligations, without preference or priority, and in the event of any insufficiency of such moneys, ratably without any discrimination or preference.
(4) General Expenditures. All Gross Revenues not required to be withdrawn pursuant to the provisions of (1) through (3) above shall be used for expenditure for any lawful purpose of the City, including payment of any rebate requirement or of any obligation subordinate to the payment of all amounts due hereunder or under Parity Obligations.

Although all Parity Obligations are secured equally and ratably by applicable Net Revenues, moneys with respect to obligations other than the Installment Payments may be held by trustees under documents and agreements other than this Installment Purchase Contract. The City shall make such transfers from the Revenue Fund necessary to effectuate such obligations’ parity claim on such Net Revenues contemplated hereby.

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Section 3.07. [Reserved].

Section 3.08. Investment of Funds.

Amounts on deposit in any fund or account created pursuant to this Installment Purchase Contract shall be invested in Qualified Investments which will, as nearly as practicable, mature on or before the dates when such money is anticipated to be needed for disbursement hereunder. The Lender and any affiliates may act as sponsor, advisor, principal or agent in the acquisition or disposition of any such investment. Interest or profit received on such investments shall be deposited to the Debt Service Fund. In computing the amount in any fund or account, Qualified Investments shall be valued at market value, exclusive of accrued interest.

If at any time after investment therein a Qualified Investment ceases to meet the criteria set forth in the definition of Qualified Investments and such obligation, aggregated with other nonconforming investments, exceeds five percent (5%) of invested funds, such Qualified Investment shall be sold or liquidated.

ARTICLE IV

PARITY OBLIGATIONS
Section 4.01. Parity Obligations.
(a) So long as any Installment Payments are due hereunder: (i) the City shall not issue or incur any obligations payable from Gross Revenues other than Maintenance and Operation Costs; and (ii) the City shall not issue or incur any obligation payable from Net Revenues senior or superior to the Installment Payments. The City may at any time issue Parity Obligations payable from Net Revenues on a parity with the Installment Payments to provide financing for the Enterprise in such principal amount as shall be determined by the City. The City may issue or incur any such Parity Obligations subject to the following specific conditions which are hereby made conditions precedent to the issuance and delivery of such Parity Obligations:
(1) No Default or Event of Default shall have occurred and be continuing; and
(2) The Net Revenues for the latest Fiscal Year, calculated in accordance with Generally Accepted Accounting Principles as shown by the books of the City, shall be at least equal to one hundred and twenty percent (120%) of the amount of Maximum Annual Debt Service (including the proposed Parity Obligations).

The City may at any time execute contracts or issue bonds or other indebtedness payable from Net Revenues or the Revenue Fund payable on a subordinate basis to the payment of the Installment Payments.
(b) In order to maintain the parity relationship of the Installment Payments to all Parity Obligations permitted hereunder, the City covenants that all payments in the nature of principal and interest with respect to any Parity Obligations, except with respect to Governmental Loans, will be structured to occur monthly on the Interest Payment Dates and in each year as such payments are due with respect to the Installment Payments, and to otherwise structure the terms of such Parity Packet Pg. 72
Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 15 4857-3662-4880.5
Obligations to ensure that they are in all respects payable on a parity with the Installment Payments and not prior thereto; provided that the City shall not make a payment on such Governmental Loan to the extent that it would have the effect of causing the City to fail to pay Installment Payments on a timely basis. In such event, the City shall make Installment Payments and payments on such Governmental Loan on a pro rata basis.

ARTICLE V

REPRESENTATIONS, COVENANTS AND WARRANTIES
Section 5.01. Compliance with Installment Purchase Contract.

The City will not suffer or permit any material default by it to occur hereunder, but will faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms hereof required to be complied with, kept, observed and performed by it.

Section 5.02. Observance of Laws and Regulations.

The City will faithfully comply with, keep, observe and perform all valid and lawful obligations or regulations now or hereafter imposed on it by contract, or prescribed by any law of the United States of America or of the State of California, or by any officer, board or commission having jurisdiction or control, as a condition of the continued enjoyment of each and every franchise, right or privilege now owned or hereafter acquired by it, including their right to exist and carry on their respective businesses, to the end that such franchises, rights and privileges shall be maintained and preserved and shall not become abandoned, forfeited or in any manner impaired.

Section 5.03. Prosecution and Defense of Suits.

The City will promptly, upon request of the Lender, take such action from time to time as may be necessary or proper to remedy or cure any cloud upon or defect in the title to the Enterprise or any part thereof, whether now existing or hereafter developing, will prosecute all actions, suits or other proceedings as may be appropriate for such purpose and will indemnify and save the Lender harmless from all cost, damage, expense or loss, including reasonable attorneys’ fees (to include outside counsel fees and all allocated costs of the Lender’s in-house counsel to the extent permissible), which they or any of them may incur by reason of any such cloud, defect, action, suit or other proceeding.

Section 5.04. Accounting Records and Statements.

The City will keep proper accounting records in which complete and correct entries shall be made of all transactions made by the City relating to the receipt, deposit and disbursement of the Gross Revenues and Net Revenues, and such accounting records shall be available for inspection by the Lender or its agent duly authorized in writing on any Business Day upon reasonable notice at reasonable hours and under reasonable conditions prescribed by the City.

Section 5.05. Further Assurances.

Whenever and so often as requested to do so by the Lender, the City will promptly execute and deliver or cause to be executed and delivered all such other and further assurances, documents or instruments and promptly do or cause to be done all such other and further things as may be necessary Packet Pg. 73
Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 16 4857-3662-4880.5
or reasonably required in order to further and more fully vest in the Lender all advantages, benefits, interests, powers, privileges and rights conferred or intended to be conferred upon them by this Installment Purchase Contract.

Section 5.06. Against Encumbrances.

The City hereby represents that there is no pledge of or lien on Net Revenues senior to the pledge and lien securing the Installment Payments. The City will not make any pledge of or place any lien on the Net Revenues, provided that the City may at any time, or from time to time, pledge or encumber the Net Revenues in connection with the issuance or execution of Parity Obligations in accordance with Section 4.01 or other obligations permitted hereby, or subordinate to the pledge of Net Revenues herein.

Section 5.07. Against Sale or Other Disposition of Property.

The City will not sell, lease, encumber or otherwise dispose of the Enterprise or any part thereof in excess of one-half of one percent of the book value of the Enterprise in any Fiscal Year, unless a Finance Officer certifies that such sale, lease, encumbrance or disposition will not materially adversely affect the operation of the Enterprise or the Net Revenues; provided that any real or personal property which has become non-operative or which is not needed for the efficient and proper operation of the Enterprise, or any material or equipment which has become worn out, may be sold or exchanged at not less than the fair market value thereof and the proceeds (if any) of such sale or exchange shall be deposited in the Revenue Fund.

The City will not enter into any agreement or lease which would impair the ability of the City to meet the covenant set forth in Section 5.16 hereof or which would otherwise impair the rights of the Lender or the operation of the Enterprise.

Section 5.08. Against Competitive Facilities.

Except for any utility system existing as of the date hereof, the City will not, to the extent permitted by law, acquire, maintain or operate and will not, to the extent permitted by law and within the scope of its powers, permit any other public or private agency, authority, city or political subdivision or any person whomsoever to acquire, maintain or operate within the City any utility system competitive with the Enterprise; provided that the City may, with the prior written consent of the Lender, assign all or a portion of the Enterprise to another entity upon delivery to the Lender of an opinion of nationally recognized bond counsel that such assignment will not adversely affect the taxexempt status of the Installment Payments, and provided that such entity assumes the obligations of the City hereunder.

Section 5.09. Tax Covenants.

The City shall not take any action or permit to be taken any action within its control which would cause or which, with the passage of time if not cured would cause, the interest with respect to Packet Pg. 74
Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) 17 4857-3662-4880.5
the Installment Payments to become includable in gross income for federal income tax purposes. To that end, the City hereby makes the following specific covenants:
(a) The City hereby covenants that it shall not make or permit any use of the proceeds of the Installment Payments that may cause the Installment Purchase Contract to be “arbitrage bonds” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended. (b) The City covenants that the proceeds of the Installment Purchase Contract will not be used so as to cause the proceeds of the Installment Purchase Contract to satisfy the private business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c) of the Code.
(c) The City covenants not to take any action or permit or suffer any action to be taken if the result of the same would be to cause the Installment Purchase Contract to be “federally guaranteed” within the meaning of Section 149(b) of the Code.

In furtherance of the covenants stated in this Section, the City shall comply with the requirements of the Tax Compliance Certificate executed in connection with this Installment Purchase Contract.

Section 5.10. Maintenance and Operation of the Enterprise; Budgets.

The City will maintain and preserve the Enterprise in good repair and working order at all times and will operate the Enterprise in an efficient and economical manner. The City will pay all Maintenance and Operation Costs of the Enterprise as they become due and payable.

Section 5.11. Payment of Claims.

The City will pay and discharge any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien on the Net Revenues or any part thereof or on any funds in the control of the City prior or superior to the lien of the Installment Payments or which might impair the security of the Installment Purchase Contract; provided that the City shall not be obligated to make such payment so long as the City contests such payment in good faith.

Section 5.12. Compliance with Contracts.

The City will comply with, keep, observe and perform all agreements, conditions, covenants and terms, expressed or implied, required to be performed by it contained in all contracts for the use of the Enterprise and all other contracts affecting or involving the Enterprise to the extent that the City is a party thereto.

Section 5.13. Insurance.
(a) The City will procure and maintain insurance on the Enterprise with commercial insurers or through participation in a joint powers insurance authority, in such amounts, with such deductibles and against such risks (including accident to or destruction of the Enterprise) as are usually insurable in accordance with industry standards with respect to similar enterprises and consistent with the City’s current coverage.

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In the event of any damage to or destruction of the Enterprise caused by the perils covered by such insurance, the proceeds of such insurance shall be applied to the repair, reconstruction or replacement of the damaged or destroyed portion of the Enterprise. The City shall cause such repair, reconstruction or replacement to begin promptly after such damage or destruction shall occur and to continue and to be properly completed as expeditiously as possible, and shall pay out of the proceeds of such insurance all costs and expenses in connection with such repair, reconstruction or replacement so that the same shall be completed and the Enterprise shall be free and clear of all liens and claims.

If the proceeds received by reason of any such loss shall exceed the costs of such repair, reconstruction or replacement, the excess shall be applied to the prepayment of Installment Payments as provided in Section 6.01.

Alternatively, if the proceeds of such insurance are sufficient to enable the City to retire all outstanding Parity Obligations and the Installment Payments and all other amounts due hereunder, the City may elect not to repair, reconstruct or replace the damaged or destroyed portion of the Enterprise, and thereupon such proceeds shall be applied to the prepayment of Installment Payments as provided in Section 6.01 and to the payment of all other amounts due hereunder, and as otherwise required by the documents pursuant to which such Parity Obligations were issued. (b) The City will procure and maintain commercial general liability insurance covering claims against the City for bodily injury or death, or damage to property, occasioned by reason of the ownership or operation of the Enterprise, such insurance to afford protection in such amounts and against such risks as are usually covered in connection with similar enterprises. (c) The City will procure and maintain workers’ compensation insurance against liability for compensation under the Workers’ Compensation Insurance and Safety Act of California, or any act hereafter enacted as an amendment or supplement or in lieu thereof, such insurance to cover all persons employed in connection with the Enterprise. (d) In lieu of obtaining insurance coverage as required by this Section, such coverage may be maintained by the City in the form of self-insurance so long as the City certifies that:
(i) the City has segregated amounts in a special insurance reserve meeting the requirements of this Section; (ii) an Insurance Consultant certifies annually, on or before December 1 of each year in which self-insurance is maintained, in writing that the City’s general insurance reserves are actuarially sound and are adequate to provide the necessary coverage; and (iii) such reserves are held in a separate trust fund by an independent trustee. The City shall pay or cause to be paid when due the premiums for all insurance policies required hereby.

Section 5.14. Books and Accounts; Financial Statements.

The City shall keep proper books of record and accounts of the Enterprise, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the Enterprise. Said books shall be subject to the inspection by the Lender, or its representatives authorized in writing, upon not less than five (5) Business Days’ prior notice to the City.

The City shall cause the books and accounts of the Enterprise, which shall include a statement of revenues and expenditures and changes in fund balances, a balance sheet and a statement of cash flow, to be audited annually by an Independent Certified Public Accountant or firm of certified public Packet Pg. 76
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accountants, not more than two hundred and seventy (270) days after the close of each Fiscal Year.

The City shall send a copy of such report and all related financial statements and notes to the Lender.

Such audit may be part of an audit of the Enterprise. The City shall send to the Lender a copy of the annual budget of the Enterprise and any amendment or supplement thereto and the City’s internal financial statements by each August 31 following the end of each Fiscal Year and any other financial information reasonably requested by the Lender.

Section 5.15. Payment of Taxes and Compliance with Governmental Regulations.

The City will pay and discharge all taxes, assessments and other governmental charges, if any, which may hereafter be lawfully imposed upon the Enterprise or any part thereof or upon the Net Revenues when the same shall become due. The City will duly observe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Enterprise or any part thereof, but the City shall not be required to make such payments, or to comply with any regulations or requirements, so long as the payment or validity or application thereof shall be contested in good faith.

Section 5.16. Amount of Rates and Charges.
(a) The City will, at all times while any of the Installment Payments remain outstanding, fix, prescribe and collect, at the commencement of each Fiscal Year, rates, fees and charges in connection with the Enterprise which are reasonably expected, at the commencement of such Fiscal Year, to yield Gross Revenues at least sufficient, after making reasonable allowances for contingencies and errors in the estimates, to pay the following amounts in the order below set forth:
(1) All Maintenance and Operation Costs of the Enterprise; (2) The Installment Payments and all payments (including payments of interest and under reimbursement agreements) with respect to related Parity Obligations issued or incurred after the date hereof as they become due and payable; (3) Amounts necessary to replenish Parity Obligation reserve funds to their required levels (or to reimburse any draws under any reserve surety or policy held for the account of any such Parity Obligation reserve fund, and to pay any costs associated therewith, in accordance with the terms of such reserve surety or policy); and
(4) All payments required to meet any other obligations of the City which are charges, liens, encumbrances upon the Gross Revenues during such Fiscal Year. (b) Furthermore, the City shall fix, prescribe, revise and collect, at the commencement of each Fiscal Year, rates, fees and charges for the services and facilities furnished by the Enterprise during each Fiscal Year which are reasonably expected, at the commencement of each Fiscal Year, to yield estimated Net Revenues which are at least equal to one hundred and twenty percent (120%) of the aggregate amount of the Installment Payments, and principal of and interest on any Parity Obligations issued or incurred after the date hereof payable from Net Revenues coming due and payable during such Fiscal Year. The City may make adjustments, from time to time, in its rates, fees and charges as it deems necessary, but shall not reduce its rates, fees and charges below those in Packet Pg. 77
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effect unless the Net Revenues resulting from such reduced rates, fees and charges shall at all times be sufficient to meet the requirements set forth in this paragraph. (c) If the City violates the covenants set forth in subsections (a) and (b) above, such violation shall not, in and of itself, be a default under this Installment Purchase Contract and shall not give rise to a declaration of an Event of Default if, within 120 days after the date such violation is discovered, the City hires an Independent Financial Consultant or an Independent Engineer to review the revenues and expenses of the Enterprise and abides by such consultant’s recommendations to revise the schedule of rates, fees and charges, to revise any Maintenance and Operation Costs of the Enterprise insofar as practicable and to take such other actions as are necessary so as to produce Net Revenues to cure such violation for future compliance; provided, however, that if the City does not cure such violation within twelve (12) months succeeding the date such violation is discovered, an Event of Default shall be deemed to have occurred under Section 7.01(b).

Section 5.17. Collection of Rates and Charges.

The City will have in effect at all times rules and regulations requiring all users of the Enterprise to pay the assessments, rates, fees and charges applicable to the Enterprise provided or made available to such users. Such rules and regulations shall also provide for the billing thereof and for a due date and a delinquency date for each bill.

Section 5.18. Eminent Domain Proceeds.

If all or any part of the Enterprise shall be taken by eminent domain proceedings, the Net Proceeds thereof shall be applied as follows:
(a) If: (1) the City certifies: (i) the estimated loss of annual Net Revenues, if any, suffered or to be suffered by the City by reason of such eminent domain proceedings; (ii) a general description of the additions, betterments, extensions or improvements to the Enterprise proposed to be acquired by the City from any Net Proceeds; and (iii) an estimate of the additional annual Net Revenues to be derived from such additions, betterments, extensions or improvements; and (2) on the basis of such certificate, determines that the estimated additional annual Net Revenues will sufficiently offset the estimated loss of annual Net Revenues resulting from such eminent domain proceedings so that the ability of the City to meet its obligations hereunder will not be substantially impaired (which determination shall be final and conclusive); then the City shall promptly proceed with the acquisition of such additions, betterments, extensions or improvements substantially in accordance with such certification and such Net Proceeds shall be applied for the payment of the costs of such acquisition, and any balance of such Net Proceeds not required by the City for such purpose shall be applied to prepay the Installment Payments, and any Parity Obligations, on a pro rata basis in the manner provided herein and in the instruments authorizing such Parity Obligations. (b) If the foregoing conditions are not met, then such Net Proceeds shall be applied to prepay the Installment Payments, and any Parity Obligations, on a pro rata basis in the manner provided herein and in the instruments authorizing such Parity Obligations.

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Section 5.19. Release and Indemnification Covenants.

To the extent permitted by law, the City shall and hereby agrees to indemnify and save the Lender, its officers, directors, agents, employees, successors or assigns harmless from and against all claims, losses and damages, including legal fees and expenses (to include outside counsel fees and all allocated costs of the Lender’s in-house counsel to the extent permissible), arising out of: (a) the use, maintenance, condition or management of, or from any work or thing done on, the Enterprise or the Project by the City; (b) any breach or default on the part of the City in the performance of any of the City’s obligations under the Installment Purchase Contract or the Conveyance Agreement; (c) any act of negligence of the City or of any of its contractors, servants, employees or licensees with respect to the Enterprise or the Project; (d) any act of negligence of any assignee or sublessee of the City, or of any agents, contractors, servants, employees or licensees of the assignee or sublessee of the City with respect to the Enterprise or the Project; (e) any environmental claims or issues; (f) the Acquisition of the Enterprise or the Project or authorization of payment of the costs of the Acquisition of the Enterprise or the Project, to the extent permitted by law; or (f) the preparation, negotiation, execution, delivery and administration of this Installment Purchase Contract and the other related documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated). Indemnification for any tort mentioned in this Section shall exclude those arising from the willful misconduct or gross negligence hereunder or under the Conveyance Agreement by the Lender, its officers and employees.

To the extent permitted by law, the City further covenants and agrees to indemnify and save the Lender harmless against any claim, loss, expense, advance, and liabilities which it may incur arising out of or in the exercise and performance of their powers and duties hereunder and under the Conveyance Agreement, including the costs and expenses (including attorneys’ fees and disbursements (to include outside counsel fees and all allocated costs of the Lender’s in-house counsel to the extent permissible)) of defending against any claim of liability or enforcing any remedies, and which are not due to their gross negligence or willful misconduct. The City further covenants and agrees to advance to the Lender the amounts requested as the costs and expenses of such defense. Any and all special obligations of the City under this Section shall be and remain valid and binding special obligations of the City notwithstanding the payment in full of the Installment Payments and the termination of this Installment Purchase Contract.

Section 5.20. Further Representations, Covenants and Warranties of the City.

The City represents, covenants and warrants to the Lender as follows:
(a) The City is a duly organized and validly existing general law city of the State of California.
(b) The Constitution and the laws of the State of California authorize the City to enter into the Installment Purchase Contract and the Conveyance Agreement and to enter into the transactions contemplated thereby and to carry out its obligations under each of the aforesaid agreements, and the City has duly authorized and executed each of the aforesaid agreements in accordance with the laws of the State of California.
(c) Neither the execution and delivery of the Installment Purchase Contract or the Conveyance Agreement nor the fulfillment of or compliance with the terms and conditions hereof or Packet Pg. 79
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thereof, nor the consummation of the transactions contemplated hereby or thereby, conflicts with or results in a breach of the terms, conditions or provisions of any restriction or any agreement or instrument to which the City is now a party or by which the City is bound, or constitutes a default under either of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of the City. (d) The City has duly authorized and executed this Installment Purchase Contract and the Conveyance Agreement in accordance with the laws of the State of California. (e) Subject to the applicable provisions of the California Constitution, the City is empowered to set rates and charges for services provided by the Enterprise provided to the users of the Enterprise without review or approval by any state or local governmental agency. (f) This Installment Purchase Contract and the pledge of Net Revenues is a first lien and pledge on Net Revenues on a parity with the Parity Obligations. (g) The City acknowledges that: (i) the Lender is acting solely for its own loan account and not as a fiduciary for the City or in the capacity of broker, dealer, placement agent, municipal securities underwriter or municipal advisor; (ii) the Lender has not provided, and will not provide, financial, legal (including securities law), tax, accounting or other advice to or on behalf of the City or with respect to this Installment Purchase Contract and the financing related thereto; and (iii) the Lender has expressed no view regarding the legal sufficiency of its representations for purposes of compliance with any legal requirements applicable to any other party, or the correctness of any legal interpretation made by counsel to any other party with respect to any such matters. (h) The financial information concerning the City heretofore delivered to the Lender is complete and correct and fairly presents the financial condition of the City for the period(s) referred to and has been prepared in accordance with Generally Accepted Accounting Principles applied on a consistent basis throughout the period(s) involved. There are no liabilities (of the type required to be reflected on balance sheets prepared in accordance with Generally Accepted Accounting Principles, direct or indirect, fixed or contingent, of the City as of the date of such financial information which are not reflected therein. There has been no material adverse change in the financial condition or operations of the City since the date of such information (and to the City’s knowledge no such material adverse change is pending or threatened), and the City has not guaranteed the obligations of, or made any investment in or loans to, any person except as disclosed in such information. The City has good and marketable title to all of its properties and assets related to the Project, and all of such properties and assets are free and clear of encumbrances, except as reflected in such financial information. To the best of the City’s knowledge, no document furnished nor any representation, warranty or other written statement made to the Lender in connection with the negotiation, preparation or execution of this Installment Purchase Contract contains any untrue or misleading statement of a material fact.
(i) The City has never non-appropriated or defaulted under any of its payment or performance obligations or covenants, either under any financing contract of the same general nature as this Installment Purchase Contract, or under any of its bonds, notes, or other debt obligations.

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(j) The City is in full compliance with all Laws and Regulations, including Environmental Regulations, and the City shall remain in compliance with such Laws and Regulations, including Environmental Regulations.
(k) The City shall further provide to the Lender: (i) within three (3) Business Days after the City obtains knowledge thereof, notice by telephone, promptly confirmed in writing, of any event that constitutes an Event of Default under this Installment Purchase Contract, together with a statement by an Authorized Officer of the City of the steps being taken by the City to cure such Event of Default; (ii) within ten (10) days after the City obtains knowledge thereof, written notice of any Material Adverse Effect; and (iii) within ten (10) days after receipt of request therefor by the Lender, updates, if any, of the information described in Section 5.14 of this Installment Purchase Contract; and (d) within ten (10) days after receipt of request therefor by the Lender, such additional information as the Lender may reasonably request.
(l) The City reasonably believes that sufficient funds can be obtained to make all Installment Payments and all other amounts required to be paid pursuant to this Installment Purchase Contract.
(m) All information, reports and other papers and data furnished by the City to the Lender, at the time the same were so furnished, complete and accurate in all material respects and insofar as necessary to give the Lender a true and accurate knowledge of the subject matter and were provided in expectation of the Lender’s reliance thereon in entering into the transactions contemplated by this Installment Purchase Contract. No fact is known to the City which has had or, so far as the City can now reasonably foresee, may in the future have a Material Adverse Effect, which has not been set forth in the financial statements previously furnished to the Lender or in other such information, reports, papers and data or otherwise disclosed in writing to the Lender prior to the Closing Date. Any financial, budget and other projections furnished to the Lender by the City or its agents were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair and reasonable in light of the conditions existing at the time of delivery of such financial, budget or other projections, and represented, and as of the date of this representation, represent the City’s best estimate of its future financial performance. No document furnished nor any representation, warranty or other written statement made to the Lender in connection with the negotiation, preparation or execution of this Installment Purchase Contract contains or will contain any untrue statement of a material fact or omits or will omit to state (as of the date made or furnished) any material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they were or will be made, not misleading.
(n) The City does not enjoy any rights of immunity on the grounds of sovereign immunity in respect of its obligations under the Installment Purchase Contract or otherwise with respect to the Installment Payments. To the extent that the City has or hereafter may acquire under any applicable law any rights to immunity from legal proceedings on the grounds of sovereignty, the City hereby waives, to the extent permitted by law, such rights to immunity for itself in respect of its obligations arising under or related to the Installment Purchase Contract or otherwise with respect to the Installment Payments.
(o) Since the most current date of the information, financial or otherwise, supplied by the City to the Lender: (i) there has been no change in the assets, liabilities, financial position or results of operations of the City which might reasonably be anticipated to cause a Material Adverse Packet Pg. 81
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Effect; (ii) the City has not incurred any obligations or liabilities which might reasonably be anticipated to cause a Material Adverse Effect; and (iii) the City has not: (1) incurred any material indebtedness, other than the payments and trade accounts payable arising in the ordinary course of the City’s business and not past due; or (2) guaranteed the indebtedness of any other person.

Section 5.21. Representations, Covenants and Warranties of the Lender.

The Lender represents, covenants and warrants to the City as follows:
(a) The Lender is a state-chartered bank under the laws of the State of Washington, has the power to enter into the Installment Purchase Contract and the Conveyance Agreement and to sell the Project and has duly authorized the execution and delivery of the aforesaid agreements. (b) The Lender will not assign the Installment Purchase Contract or its right to receive Installment Payments from the City, or its duties and obligations under the Installment Purchase Contract to any other person, firm or corporation, except to affiliates of the Lender or to banks, insurance companies or other financial institutions or their affiliates, including participation arrangements with such entities; provided, no such assignment shall be made that would cause there to be more than 15 such assignees or any interest in the Installment Payments of less than $100,000. Prior to any such assignment, the Lender shall provide written notice of such assignment to the City and the City shall retain all such notices as a register of all assignees and shall make all payments to the assignee or assignees or servicer last designated in such register.

ARTICLE VI

PREPAYMENT OF INSTALLMENT PAYMENTS
Section 6.01. Prepayment.
(a) The City may or shall, as the case may be, prepay on any Interest Payment Date from the Net Proceeds of insurance or condemnation awards, as provided herein, all or any part, in integral multiples of $1,000, of the principal amount of the unpaid Installment Payments, pro-rata among the remaining Installment Payments, at a prepayment price equal to the sum of the principal amount prepaid, plus accrued interest to the date of prepayment, without premium. (b) The City may prepay the unpaid principal balance of the Installment Payments in whole or in part, on any date after the Closing Date, by paying a prepayment price equal to the principal amount of the Installment Payments to be prepaid, without premium.

Except in connection with a security deposit as set forth in Section 6.03 hereof, the City shall be required to give the Lender written notice of its intention to prepay any Installment Payment under subsections (a) and (b) above at least two (2) Business Days prior to the proposed prepayment date.

In the event that the Installment Payments shall have been prepaid by the City pursuant to subsections (a) or (b) above, the total amount of all future payments set forth in the schedules attached hereto as Exhibit A shall be reduced by the aggregate amount of such Installment Payment so prepaid, as agreed to by the Lender. The Lender shall prepare a revised schedule of Installment Payments for the City.

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Notwithstanding any such prepayment, the City shall not be relieved of its obligations hereunder, including its obligations under Article III hereof, until the entire principal amount of the unpaid Installment Payments together with the interest accrued thereon, if any, and together with the ordinary and extraordinary fees, costs and expenses of the Lender, shall have been fully paid and the Installment Payments are no longer due hereunder (or provision for payment thereof shall have been made pursuant to Section 6.03 hereof).

Section 6.02. Method of Prepayment.

Before making any prepayment pursuant to Section 6.01(a), the City shall give written notice to the Lender describing such event and specifying the date on which the prepayment will be made, which date shall be not less than five (5) days from the date such notice is given.

Section 6.03. Security Deposit.

Notwithstanding any other provision of this Installment Purchase Contract, the City may secure the payment of all or a portion of Installment Payments by a deposit with the Lender or, at the Lender’s sole option, a bank or trust company acceptable to the Lender, as escrow holder under an escrow deposit and trust agreement, of either: (a) cash in an amount which is sufficient to pay such unpaid Installment Payments, including the principal and interest components thereof, in accordance with the Installment Payment schedule set forth in Exhibit A attached hereto; or (ii) non-callable Federal Securities or pre-refunded non-callable municipal obligations rated “AAA” and “Aaa” by S&P Global Ratings and Moody’s Investor’s Service, respectively, together with cash if required, in such amount as will, without re-investment, in the opinion of an Independent Certified Public Accountant (which opinion shall be addressed to the Lender), together with interest to accrue thereon, be fully sufficient to pay such unpaid Installment Payments on their payment dates so that such Installment Payments shall be defeased; provided that prior to any such deposit or defeasance, the City must provide an opinion of nationally recognized bond counsel addressed to the Lender to the effect that such deposit and defeasance will not cause the interest component of the Installment Payments to be included in gross income for federal income tax purposes. In the event of any shortfall, the City shall deposit from legally available funds such amounts as is necessary to make up such shortfall.

In the event of a deposit pursuant to this Section 6.03, and provided that all other amounts payable by the City hereunder have been paid in full, all obligations of the City under this Installment Purchase Contract shall cease and terminate, excepting only the obligation of the City to make, or cause to be made, all Installment Payments from the deposit made by City pursuant to this Section 6.03 and the obligation to pay amounts due the Lender. Said deposit shall be deemed to be and shall constitute a special fund that may be used solely for the payment of Installment Payments in accordance with the provisions of this Installment Purchase Contract, and pending such application shall be held in trust and pledged to and for the sole benefit of the Lender and any assignee or transferee of the Lender. The City hereby grants to the Lender a first priority security interest in any amounts so deposited.

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ARTICLE VII

EVENTS OF DEFAULT AND REMEDIES
Section 7.01. Events of Default and Events of Mandatory Acceleration; Acceleration of Maturities.

If one or more of the following Events of Default shall happen:
(a) default shall be made in the due (whether at maturity, by reason of acceleration or otherwise) and punctual payment by the City of any Installment Payment or any other amount payable hereunder or under the Conveyance Agreement when and as the same shall become due (whether at maturity, by reason of acceleration or otherwise) and payable; or (b) default shall be made by the City in the performance of any of the agreements or covenants contained herein (other than those referenced in Section 7.01(a) hereof) required to be performed by it, and such default shall have continued for a period of thirty (30) days after the earlier of: (i) the City’s knowledge of such default; and (ii) receipt by the City of written notice from the Lender of such default; or
(c) any financial statement or certificate furnished to the Lender in connection with this Installment Purchase Contract, or any representation or warranty made by the City shall prove to be incorrect, false or misleading in any material respect when furnished or made; or (d) the City shall file a petition seeking arrangement or reorganization under federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or a court of competent jurisdiction shall approve a petition filed with the consent of the City seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or under the provisions of any other law for the relief or aid of debtors any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property, or the City shall file an answer admitting the jurisdiction of the court and the material allegations of any involuntary petition, or the City shall be adjudicated a bankrupt, or an order for relief shall be entered against the City by any court of competent jurisdiction under the United States Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors; or (d) the entry or filing of any final, nonappealable judgment or any similar process in an amount in excess of $1,000,000 against the City or against any of its property and failure by the City to stay the enforcement of such judgment or other process for a period of 60 days or failure to pay or satisfy the same within 60 days; or
(e) the City shall in writing claim, or repudiate its obligations under, or initiate any legal proceedings to seek an adjudication that, any of the provisions that provide for the payment of the Installment Payments is not valid or binding on the City, or any court of competent jurisdiction or other governmental authority with jurisdiction to rule on the validity of this Installment Purchase Contact shall find or rule that any of the provisions that provide for the payment of Installment Payments is not valid or binding on the City, or any provision of this Installment Purchase Contact shall cease to be valid and binding or shall be declared null and void; or the City or any governmental authority shall contest any such provision, or the City or any agent or trustee on behalf of the City shall Packet Pg. 84
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deny that it has any further liability under any provision of this Installment Purchase Contact, or the City shall: (A) claim that this Installment Purchase Contact is not valid or binding on it; (B) repudiate its obligations under this Installment Purchase Contact; and/or (C) initiate any legal proceedings to seek an adjudication that this Installment Purchase Contact or the City’s obligation to repay any Parity Obligation is not valid or binding on it; or
(f) the adoption of any resolution of the City to authorize any action or event that would constitute an Event of Default; or
(g) an event of default shall have occurred with respect to any Parity Obligations; then and in each and every such case during the continuance of such Event of Default, the Lender may invoke the Default Rate and may, by notice in writing to the City declare the principal amount of the unpaid Installment Payments, and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything contained herein to the contrary notwithstanding.

This provision, however, is subject to the condition that, if at any time after such principal amount of the unpaid Installment Payments and the accrued interest thereon shall have been so declared due and payable and before the acceleration date or the date of any judgment or decree for the payment of the money due shall have been obtained or entered, the City shall deposit with the Lender a sum sufficient to pay such unpaid principal amount of the Installment Payments due prior to such date and the accrued interest thereon, with any interest due on such overdue installments, and the reasonable expenses of the Lender, and any and all other defaults known to the Lender (other than in the payment of such principal amount of the unpaid Installment Payments and the accrued interest thereon due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Lender or provision deemed by the Lender to be adequate shall have been made therefor, then and in every such case the Lender, by written notice to the City, may (but shall be under no obligation to) rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default or shall impair or exhaust any right or power consequent thereon.

Section 7.02. Application of Funds Upon Default.

All moneys and investments in the funds and accounts held hereunder upon the date of the declaration of an Event of Default as provided in Section 7.01 and all Gross Revenues thereafter received shall be applied as follows:
(a) Unless the principal of all Installment Payments shall have become or shall have been declared due and payable, all such moneys shall be applied:

First: To the payment to the persons entitled thereto of the interest portion of all Installment Payments, with interest on overdue installments, if lawful, in the order of the maturity of the installments of such interest, and, if the amount available shall not be sufficient to pay in full any particular installment of interest, then to the payment ratably according to the amounts due on such installment, to the persons entitled thereto without any discrimination or privilege; and Packet Pg. 85
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Second: To the payment to the persons entitled thereto of the unpaid principal of any of the Installment Payments which shall have become due, with interest at their rate from the respective dates upon which they became due, in the order of their due dates, and, if the amount available shall not be sufficient to pay in full Installment Payments due on any particular date, together with such interest, then to the payment ratably, according to the amount of principal and interest due on such date, to the persons entitled thereto without any discrimination or privilege. (b) If all of the Installment Payments shall have become due or shall have been declared due and payable, all such moneys shall be applied to the payment of the Installment Payments, with interest on overdue interest and principal, as aforesaid, without preference or priority over interest or of interest over principal or of any installment of interest over any other installment of interest, ratably, according to the amounts due respectively for principal and interest, to the persons entitled thereto without any discrimination or privilege.

Section 7.03. Other Remedies of the Lender.

The Lender may:
(a) by mandamus or other action or proceeding or suit at law or in equity enforce its rights against the City and compel the City to perform and carry out its duties under applicable law and the agreements and covenants contained herein required to be performed by it; (b) by suit in equity enjoin any acts or things which are unlawful or violate the rights of the Lender;
(c) by suit in equity upon the happening of an Event of Default require the City and its board members, officers and employees to account as the trustee of an express trust; or (d) by suit in equity, to seek the appointment of a receiver or other third party to operate the Enterprise and collect the Gross Revenues.

Section 7.04. Non-Waiver.

Nothing in this Article VII or in any other provision hereof shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the Installment Payments to the Lender at the respective due dates or upon prepayment from the Gross Revenues, or, except as expressly provided herein, shall affect or impair the right of the Lender, which is also absolute and unconditional, to institute suit to enforce such payment by virtue of the contract embodied herein.

A waiver of any default or breach of duty or contract by the Lender shall not affect any subsequent default or breach of duty or contract or impair any rights or remedies on any such subsequent default or breach of duty or contract. No delay or omission by the Lender to exercise any right or remedy accruing upon any default or breach of duty or contract shall impair any such right or remedy or shall be construed to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and every right or remedy conferred upon the Lender by applicable law or by this Article VII may be enforced and exercised from time to time and as often as shall be deemed expedient by the Lender.

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If any action, proceeding or suit to enforce any right or exercise any remedy is abandoned or determined adversely to the Lender, the City and the Lender shall be restored to their former positions, rights and remedies as if such action, proceeding or suit had not been brought or taken.

Section 7.05. Remedies Not Exclusive.

No remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise and may be exercised without exhausting and without regard to any other remedy conferred by any other law.

ARTICLE VIII

MISCELLANEOUS
Section 8.01. Liability of City Limited.

Notwithstanding anything contained herein, the City shall not be required to advance any moneys derived from any source of income other than the Net Revenues legally available therefor in the Revenue Fund, and the other funds provided herein for the payment of the Installment Payments or for the performance of any agreements or covenants contained herein required to be performed by it. The City may, however, but shall not be required to, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.

The obligation of the City to make the Installment Payments and the other amounts due hereunder is a special obligation of the City payable solely from Net Revenues and does not constitute a debt or pledge of the faith and credit of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction.

Section 8.02. Benefits of Installment Purchase Contract Limited to Parties.

Except as provided in Section 8.03, nothing contained herein, express or implied, is intended to give to any person other than the City or the Lender any right, remedy or claim under or pursuant hereto, and any agreement or covenant required herein to be performed by or on behalf of the City or the Lender shall be for the sole and exclusive benefit of the other party.

Section 8.03. Successor Deemed Included in All References to Predecessor.

Whenever the City or the Lender is named or referred to herein, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in the City or the Lender, and all agreements and covenants required hereby to be performed by or on behalf of the City or the Lender shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.

Section 8.04. Waiver of Personal Liability.

No board member, officer, employee or agent of the City shall be individually or personally liable for the payment of the Installment Payments, but nothing contained herein shall relieve any board Packet Pg. 87
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member, officer or employee of the City from the performance of any official duty provided by any applicable provisions of law or hereby.

Section 8.05. Article and Section Headings, Gender and References.

The headings or titles of the several articles and sections hereof and the table of contents appended hereto shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof, and words of any gender shall be deemed and construed to include all genders. All references herein to “Articles,” “Sections” and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof; and the words “hereby,” “herein,” “hereof,” “hereto,” “herewith,” “hereunder” and other words of similar import refer to this Installment Purchase Contract as a whole and not to any particular article, section, subdivision or clause hereof.

Section 8.06. Partial Invalidity.

If any one or more of the agreements or covenants or portions thereof contained herein required to be performed by or on the part of the City or the Lender shall be contrary to the law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof and shall in no way affect the validity hereof. The City and the Lender hereby declare that they would have executed this Installment Purchase Contract, and each and every other article, section, paragraph, subdivision, sentence, clause and phrase hereof irrespective of the fact that any one or more articles, sections, paragraphs, subdivisions, sentences, clauses or phrases hereof or the application thereof to any person or circumstance may be held to be unconstitutional, unenforceable or invalid.

Section 8.07. Assignment.

This Installment Purchase Contract and any rights hereunder, and any participation of the Installment Payments by the Lender, may be assigned by the Lender with notice to the City, subject to the provisions of Section 5.21(b) hereof. The City may not assign any of its rights hereunder, except as otherwise provided in Section 5.08 hereof.

Section 8.08. California Law.

This Installment Purchase Contract shall be construed and governed in accordance with the laws of the State of California.

Section 8.09. Notices.

All written notices to be given hereunder shall be given by certified mail to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other party in writing from time to time namely:

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If to the City: City of Gonzales
P.O. Box 647
147 Fourth Street
Gonzales, CA 93926
Attention: City Manager
If to the Lender: Banner Bank
41530 Enterprise Circle South, Suite 100
Temecula, CA 92590
Attention: Michael Kearl
Section 8.10 Judicial Reference.

TO THE EXTENT PERMITTED BY APPLICABLE LAWS, EACH OF THE PARTIES

HERETO HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF

ACTION BASED UPON OR ARISING OUT OF THIS INSTALLMENT PURCHASE CONTRACT

OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, INCLUDING

CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. IF AND TO THE EXTENT THAT THE

FOREGOING WAIVER OF THE RIGHT TO A JURY TRIAL IS UNENFORCEABLE FOR ANY

REASON IN SUCH FORUM, EACH OF THE PARTIES HERETO HEREBY CONSENTS TO THE

ADJUDICATION OF ALL CLAIMS PURSUANT TO JUDICIAL REFERENCE AS PROVIDED IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638, AND THE JUDICIAL REFEREE

SHALL BE EMPOWERED TO HEAR AND DETERMINE ALL ISSUES IN SUCH REFERENCE, WHETHER FACT OR LAW. EACH OF THE PARTIES HERETO REPRESENTS THAT EACH

HAS REVIEWED THIS WAIVER AND CONSENT AND EACH KNOWINGLY AND

VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS AND CONSENTS TO JUDICIAL REFERENCE FOLLOWING CONSULTATION WITH LEGAL COUNSEL ON SUCH MATTERS.

IN THE EVENT OF LITIGATION, A COPY OF THIS INSTALLMENT PURCHASE CONTRACT

MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT OR TO JUDICIAL REFERENCE UNDER CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638 AS PROVIDED HEREIN.

Section 8.11. Effective Date.

This Installment Purchase Contract shall become effective upon its execution and delivery, and shall terminate when all Installment Payments shall have been fully paid (or provision for the payment thereof shall have been made to the written satisfaction of the Lender pursuant to Article VI hereof); provided, that the obligation of the City to indemnify the Lender shall survive the termination of this Installment Purchase Contract.

Section 8.12. Execution in Counterparts.

This Installment Purchase Contract may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.

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Section 8.13. Amendments.

The City may at any time amend or modify the definition of Project as set forth in this Installment Purchase Contract to provide for the designation of an Alternate Project as provided for in Section 2.01 hereof with the consent of the Lender, which shall not be unreasonably withheld. This Installment Purchase Contract may be amended in writing as may be mutually agreed by the City and the Lender. Any amendment made in violation of this Section 8.13 shall be a nullity and void. [Signatures on the following page]
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IN WITNESS WHEREOF, the parties hereto have executed and attested the Installment Purchase Contract by their officers thereunto duly authorized as of the day and year first written above.

CITY OF GONZALES
By: ___________________________________
Carmen Gil
City Manager
ATTEST:

By: ________________________________
Mary Villegas, Deputy City Clerk

BANNER BANK
By: ___________________________________
Authorized Officer
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Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) A-1
4888-3632-2226.7

EXHIBIT A
INSTALLMENT PAYMENT SCHEDULE(1)
Draw Down Amount: $_________________
Draw Down Date: November 26, 2024
Date Principal Interest Total
1/1/2025 $ [_ $ $
2/1/2025
3/1/2025
4/1/2025
5/1/2025
6/1/2025
7/1/2025
8/1/2025
9/1/2025
10/1/2025
11/1/2025
12/1/2025
1/1/2026
2/1/2026
3/1/2026
4/1/2026
5/1/2026
6/1/2026
7/1/2026
8/1/2026
9/1/2026
10/1/2026
11/1/2026
12/1/2026
1/1/2027
2/1/2027
3/1/2027
4/1/2027
5/1/2027
6/1/2027 __]
TOTALS $ $ $
___________________
(1) Reflects initial Advance. To be updated with subsequent Advances.

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4857-3662-4880.5

EXHIBIT B

DESCRIPTION OF THE PROJECT
A 1.0 million gallon per day capacity Industrial Wastewater Treatment Facility (the “IWTF”) next to the City’s existing wastewater treatment plant to treat agricultural wash water from vegetable processing facilities in the nearby Industrial Business Park. The IWTF will include a lift station, aerated lagoons, and infiltration ponds.

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4857-3662-4880.5

EXHIBIT C

FORM OF ACQUISITION FUND REQUISITION
REQUISITION NO. _____ FOR

DISBURSEMENT FROM ACQUISITION FUND
The undersigned hereby states and certifies:
(i) that he/she is the duly appointed, qualified and acting _________ of the City of Gonzales, a municipal corporation and general law city that is duly organized and existing under and by virtue of the Constitution and laws of the State of California (the “City”), and as such, is familiar with the facts herein certified and is authorized to certify the same; (ii) that, pursuant to Article II and Section 3.01 of the Installment Purchase Contract, dated as of November 1, 2024 (the “IPC”), by and among the City and Banner Bank, the undersigned hereby requests Banner Bank to disburse this date from the Acquisition Fund established under the IPC, to the payees designated on the attached Exhibit 1, the amount(s) designated on the attached Exhibit 1; (iii) that each obligation mentioned herein has been incurred by the City and is a proper charge against the Acquisition Fund in compliance with the SRF Obligation, including Exhibit C thereto and all insurance, environmental and bonding requirements thereunder; (iv) that each obligation mentioned herein has been certified by an Independent Engineer and budgeted for by the City;
(v) that there has not been filed with or served upon the City notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the payees named on the attached Exhibit 1, which has not been released or will not be released simultaneously with the payment of such obligation, other than materialmen’s or mechanics’ liens accruing by mere operation of law;
(vi) that, with respect to the Project, the following is a summary of progress to date [FOR FIRST ADVANCE REQUEST: since the execution of the IPC] [FOR FUTURE ADVANCES: since the last progress report]:
(1) Description of work undertaken: ________________________________________ _________________________________________________________________________________ (2) Percent construction complete: ________________
(3) Percent contractor invoiced: __________________
(4) Percent schedule elapsed: ____________________
(5) Description of compliance with environmental requirements: ______________ _________________________________________________________________________________ Packet Pg. 94
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4857-3662-4880.5
(6) Change orders, if any, including amount, description of work, and change in contract amount and schedule: _________________________________________________________ _________________________________________________________________________________ (7) Description of any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions: ______________________________________ _________________________________________________________________________________ (vi) that, included herewith are copies of Forms 260 and 261 required under the SRF Obligation.

All capitalized terms used herein and not defined herein shall have the meanings ascribed thereto in the IPC.

Dated: ______________ CITY OF GONZALES
By:

Its:

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-3
EXHIBIT 1

ACQUISITION FUND DISBURSEMENTS
Item
Number Payee Name and Address
Purpose of
Obligation Amount $
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Attachment: Exhibit B - Installment Purchase Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing Documents)

PLACEMENT AGENT AGREEMENT

MUNICIPAL ISSUERS
November 11, 2024
Carmen Gil, City Manager
City of Gonzales
147 Fourth St.

Gonzales, CA 93926
Re: Placement Agent Engagement – City of Gonzales 2024 Installment Purchase Contract (SRF Interim Financing)
Dear Ms. Gil:

This letter confirms the agreement (the “Agreement”) between Hilltop Securities Inc. (“HilltopSecurities” or “we” or “us”) and The City of Gonzales (the “Issuer” or “you”). You desire to engage HilltopSecurities as a placement agent in connection with the placement of your 2024 Installment Purchase Contract (the “Securities”). Pursuant to MSRB Rule 15c2-12(d), the Securities will be issued in authorized denominations of $1.00 or more with, as currently contemplated, gross proceeds of approximately $10,000,000.00 for the purpose of providing interim financing for the City’s wastewater treatment project pursuant to the Resolution to be adopted on November 18, 2024 (the “Resolution”). As a placement agent, HilltopSecurities will have duties, roles and responsibilities that are different from those of a municipal advisor. You are directed to consider the MSRB Rule G-17 disclosures relevant to placement agent activity previously provided to you in a communication dated October 24, 2024. This agreement amends and supplements our earlier engagement letter dated September 26, 2024.

Engagement. The Issuer engages HilltopSecurities to act as its exclusive representative to assist you on a best-efforts basis in placing the Securities (the “Transaction”). You acknowledge and agree that our engagement hereunder is not an agreement by HilltopSecurities or any of its affiliates to underwrite, place or purchase the Securities or otherwise provide any financing to you. We accept this engagement upon the terms and conditions set forth in this Agreement. Sale and delivery of the Securities by the Issuer and purchase by the purchasers will occur on the day of closing (“Closing Date”).

Fees. For our services, you agree to pay us a Placement Agent Fee of $25,000.00 of the gross proceeds received by you on all sales of the Securities payable by wire transfer of immediately available funds on the Closing Date. For avoidance of doubt, the Placement Agent Fee shall be contingent upon the closing of the Transaction.

Disclosure and Due Diligence. The Issuer will prepare and provide to the Placement Agent the following:
 A term sheet and/or other documents including financials, budgets, estimated debt service requirements and coverage, historical tax collections by relevant classification, litigation and regulatory materials, material contracts, Issuer demographic information, underlying credit ratings and other information the Issuer deems material to investors, (the “Information Package”).

EXHIBIT C
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Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing 2  The draft Installment Purchase Contract and other legal documents to be used in connection with the Transaction (together with all supplements, modifications, and additions thereto prior to the Closing Date, which together with the Information Package are referred to as the “Placement Materials”).
 The Issuer will make available to each Purchaser and the Placement Agent such documents and other information which the Purchaser or the Placement Agent reasonably deem appropriate, will provide access to its officers, directors, employees, accountants, counsel and other representatives, and will provide each Purchaser and the Placement Agent the opportunity to ask questions and receive answers from knowledgeable individuals.
 The Issuer will cause its counsel to allow the Placement Agent to rely on any opinion provided to the Issuer, and will allow the Placement Agent to rely on any representations made to the Purchaser by the Issuer.

Representations, Warranties and Agreements of the Issuer. You represent and warrant to, and agree with us, that:
 The Issuer is duly organized and validly existing under the general laws of the State of California (the “State”) with the power to enter into the Installment Purchase Contract, perform the agreements on its part contained therein and in the agreements approved thereby and cause the issuance of the Securities.
 The Issuer: (i) has duly authorized and approved the execution and delivery of this Agreement; (ii) will adopt and on the Closing Date will have duly adopted an approving resolution with respect to the Transaction (the “Resolution”); (iii) will duly authorize and approve the Placement Materials and the use and distribution of the Placement Materials to prospective Purchasers; and (iv) will duly authorize and approve the execution and delivery of all financing or operative documents, including the Securities, to which the Issuer is a party relating to the issuance and security for the Securities, as such documents are amended and supplemented to the Closing Date, including but not limited to any trust indenture, loan agreement, or security instrument (the “Financing Documents”), and the performance of its obligations and the consummation by it of all other transactions contemplated thereby.
 On the Closing Date, the Financing Documents will have been duly authorized, executed, and delivered by the Issuer, and, assuming due authorization, execution and delivery by the other parties thereto, as applicable, will constitute legal, valid and binding agreements of the Issuer enforceable in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles if sought and by the limitations on legal remedies imposed on actions against the Issuer in the State of California.
 The Issuer is not, and on the Closing Date will not be, in breach of or default under any applicable law or administrative regulation of the State or any department, division, agency or instrumentality thereof, or of the United States, or any applicable judgment or decree or any loan agreement, note, resolution, certificate, agreement or other instrument to which the Issuer is a party or is otherwise subject, which breach or default would materially and adversely affect the Issuer or its ability to perform its duties and obligations under the Financing Documents, and the execution and delivery of the Financing Documents, the adoption of the Resolution and the issuance of the Securities and compliance with the provisions of each will not conflict with or constitute a breach of or default Packet Pg. 98
Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing 3 under any applicable law or administrative regulation of the State or under any certificate, agreement or other instrument to which the Issuer is a party or is otherwise subject, which breach or default would materially and adversely affect the Issuer or its ability to perform its duties under the Financing Documents and the Securities.
 No action, suit, proceeding or investigation at law or in equity before or by any court, governmental agency, public board or body is, and on the Closing Date will not be, pending or, to the knowledge of the Issuer, threatened: (i) in any way affecting the existence of the Issuer or the titles of the members of the authorizing body of the Issuer to their respective offices, (ii) seeking to prohibit, restrain or enjoin the issuance, sale or delivery of the Securities or the collection or payment by the Issuer of any amounts pledged or to be pledged as security to pay the principal of and interest on Securities, (iii) in any way contesting or affecting the validity or enforceability of, or the power or authority of the Issuer to issue, adopt or to enter into (as applicable), the Securities, the Resolution or the Financing Documents, (iv) contesting in any way the completeness, truth, or accuracy of the Information Package, (v) except as disclosed in the Information Package, wherein an unfavorable decision, ruling or finding would materially adversely affect the financial position or condition of the Issuer or would result in any material adverse change in the ability of the Issuer to pledge or apply the security or source of payment of, or to pay debt service on the Securities, or (vi) contesting the status of the interest on the Securities as excludable from gross income for federal income tax purposes or as exempt from any applicable state tax.
 Regarding information provided by the Issuer to the Purchaser and the Placement Agent, (i) the Issuer represents and warrants that all information made available to the Purchaser and the Placement Agent by the Issuer or contained in the Information Package, when provided will at all times thereafter during the period of the engagement of the Placement Agent hereunder, be true and accurate in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances under which such statements are made and except as otherwise indicated to the contrary in the Issuer’s financial statements, all historical financial statements of the Issuer provided to the Placement Agent and each Purchaser fairly present the financial condition and operations of the entities covered thereby in all material respects.

Documents to be Delivered at Closing. On the Closing Date, the Issuer will deliver or cause to be delivered to the Placement Agent:
 The Opinion of Bond Counsel to the Issuer, dated the Closing Date relating to the validity of the Securities, and if the Securities are tax-exempt, the tax-exempt status of the Securities, together with a reliance letter from such counsel, dated the Closing Date and addressed to Hilltop Securities Inc.
 An Investor Letter, in the form attached to this Agreement as Appendix A, executed by each Purchaser and addressed to the Issuer and the Placement Agent; and  A certificate of the Issuer, dated the Closing Date, attached to this Agreement as Appendix B.  Such additional legal opinions, certificates, proceedings, instruments and other documents as the Placement Agent or its counsel, if any, and Bond Counsel may reasonably request to evidence compliance by the Issuer with legal requirements, the truth and accuracy, as of the Closing Date, of the representations of the Issuer, and the due performance or satisfaction by the Issuer at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Issuer.

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Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing 4 Regulatory Disclosures. You acknowledge that you have retained us solely to provide the services to you as set forth in this agreement. As placement agent, HilltopSecurities may provide advice concerning the structure, timing, terms, and other similar matters concerning the Transaction. You acknowledge and agree that: (i) the primary role of HilltopSecurities as a placement agent, is to place securities to investors in an arms-length commercial transaction and that HilltopSecurities has financial and other interests that differ from your interests; (ii) HilltopSecurities is not acting as a municipal advisor, financial advisor or fiduciary to you or any other person or entity and has not assumed any advisory or fiduciary responsibility to you with respect to the transaction contemplated herein and the discussions, undertakings and proceedings leading thereto (irrespective of whether HilltopSecurities has provided other services or is currently providing other services to you on other matters); (iii) the only obligations HilltopSecurities has to you with respect to the transaction contemplated hereby expressly are set forth in this agreement; and (iv) you have consulted your own legal, accounting, tax, financial and other advisors, as applicable, to the extent deemed appropriate in connection with the transaction contemplated herein.

Termination. You or we may terminate our engagement under this agreement, with or without cause, upon ten days’ written notice to the other party provided that the provisions of the section entitled Fees and the obligations thereunder shall not be affected by such termination.

Survival of Certain Representations and Obligations. The respective agreements, covenants, representations, warranties and other statements of the Issuer and its officers set forth in or made pursuant to this Agreement shall survive delivery of and payment for the Securities and shall remain in full force and effect, regardless of any investigation, or statements as to the results thereof, made by or on behalf of the Placement Agent.

Section Headings. Section headings contained herein are for convenience of reference only and are not part of this agreement.

Amendment. This agreement may be amended only by a written instrument executed by each of the Parties. The terms of this agreement may be waived only by a written instrument executed by the party waiving compliance.

Entire Agreement. This Agreement embodies the entire agreement and understanding between you and us and supersedes all prior agreements and understandings relating to the subject matter of this Agreement.

No Assignment. This agreement has been made by the Issuer and HilltopSecurities, and no other person shall acquire or have any right under or by virtue of this agreement.

Governing Law. This agreement, and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this agreement or the negotiation, execution or performance of this agreement, will be governed by and construed in accordance with the laws of California. You and we hereby waive all right to trial by jury in any action, proceeding, or counterclaim (whether based upon contract, tort or otherwise) in connection with any dispute arising out of this agreement or any matters contemplated by this agreement.

Consent to Jurisdiction; Service of Process. The parties each hereby (i) submits to the jurisdiction of any state or federal court sitting in the County of Sacramento, California for the resolution of any claim or dispute with respect to or arising out of or relating to this agreement or the relationship between the parties; (ii) agrees that all claims with respect to such actions or proceedings may be heard and determined in such court; (iii) waives the defense of an inconvenient forum; (iv) agrees not to commence any action or proceeding relating to this agreement other than in a state or federal court sitting in the County of Sacramento, State of California; and (v) agrees that a final judgment in any such action or proceeding shall Packet Pg. 100 Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing 5 be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each party hereto irrevocably consents to service of process in the manner provided for in the section entitled Notices. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

Effectiveness. This Agreement shall become effective upon its execution by duly authorized officials of all parties hereto and shall be valid and enforceable from and after the time of such execution.

Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. You and we will endeavor in good faith negotiations to replace the invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid or unenforceable provisions.

Counterparts. This Agreement may be executed in several counterparts (including counterparts exchanged by email in PDF format), each of which shall be an original and all of which shall constitute but one and the same instrument.

Notices. Any notice required or permitted to be given under this Agreement shall be given in writing and shall be effective from the date sent by registered or certified mail, by hand, facsimile or overnight courier to the addresses set forth on the first page of this agreement with a copy sent to the General Counsel of such Party.

Sincerely,
_________________________________
Todd Smith, Managing Director
Hilltop Securities Inc.

Acknowledgment and Approval of Engagement
___________________________________
Carmen Gil, City Manager
City of Gonzales
Date: _____________________________
Packet Pg. 101 Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing A-1

APPENDIX A

FORM OF INVESTOR LETTER
[Address to Issuer and Placement Agent]

CITY OF GONZALES
2024 INSTALLMENT PURCHASE CONTRACT

BANK LETTER
November 26, 2024
City of Gonzales
Gonzales, California
Kutak Rock LLP
Irvine, California
Re: Installment Purchase Contract, dated as of November 1, 2024, by and between Banner Bank and the City of Gonzales
Ladies and Gentlemen:

The undersigned, Banner Bank, a Washington state-chartered bank (including its successors and permitted assigns, the “Purchaser”), has agreed to purchase the rights, title and interest set forth in the Installment Purchase Contract, dated as of November 1, 2024 (the “Installment Purchase Contract”), by and between the City of Gonzales (the “City”) and the Purchaser, including its rights to receive certain Installment Payments up to the aggregate principal amount of $10,000,000, all of which are scheduled to be paid by the City under and pursuant to the Installment Purchase Contract. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Installment Purchase Contract. In connection with such purchase, the Purchaser hereby agrees and certifies to the City and Kutak Rock LLP, as special counsel, that:

1. The Purchaser is: (i) an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act of 1933; or (ii) a “qualified institutional buyer” within the meaning of Rule 144A promulgated under the Securities Act of 1933, as amended, and has sufficient knowledge and experience in financial and business matters, including purchase and ownership of municipal and other obligations of a nature similar to the Installment Purchase Contract and the Conveyance Agreement, dated as of November 1, 2024 (the “Conveyance Agreement”), between the Purchaser and the City to be able to evaluate the risks and merits of the extension of credit represented by the purchase of the rights, title and interest described under the Installment Purchase Contract;

2. The Purchaser is acquiring the rights, title and interest described in the Installment Purchase Contract and the Conveyance Agreement for its own account and not with a view to, or for sale in connection with, any distribution thereof or any part thereof. The Purchaser has not Packet Pg. 102 Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing A-2
offered to sell, solicited offers to buy, or agreed to sell the rights, title and interest described under the Installment Purchase Contract or the Conveyance Agreement or any part thereof, and the Purchaser has no current intention of reselling or otherwise disposing of such rights, title and interest under the Installment Purchase Contract or the Conveyance Agreement; provided, however, that such representation shall not preclude the Purchaser from transferring or selling of such rights, title and interest under the Installment Purchase Contract or the Conveyance Agreement in accordance with the Installment Purchase Contract. The Purchaser is not acting in a broker-dealer capacity in connection with its purchase of the rights, title and interest described under the Installment Purchase Contract or the Conveyance Agreement;

3. The Purchaser has made its own credit inquiry and analysis with respect to the City, the Installment Purchase Contract and the Conveyance Agreement and has made an independent credit decision based upon such inquiry and analysis and in reliance on the truth, accuracy, and completeness of the representations and warranties of the City set forth in the Installment Purchase Contract and in the information set forth in any materials submitted to the Purchaser by the City.

The City has furnished to the Purchaser with all of the information which the Purchaser, as a reasonable lender, has requested of the City as a result of the Purchaser having attached significance thereto in making its credit decision with respect to the Installment Purchase Contract and the Conveyance Agreement, and the Purchaser has had the opportunity to ask questions of and receive answers from knowledgeable individuals concerning the City, the Installment Purchase Contract and the Conveyance Agreement. The Purchaser is able and willing to bear the economic risk of the purchase and ownership of the rights, title and interest described under the Installment Purchase Contract and the Conveyance Agreement;

4. The Purchaser understands that the Installment Purchase Contract has not been registered under the United States Securities Act of 1933 or under any state securities laws, and is not registered or otherwise qualified for sale under the “blue sky” laws and regulations of any state.

The Purchaser agrees that it will comply with any applicable state and federal securities laws then in effect with respect to any disposition of its rights with respect to the Installment Purchase Contract by it, and further acknowledges that any current exemption from registration of the Installment Purchase Contract and the Conveyance Agreement does not affect or diminish such requirements. The Purchaser further acknowledges that it is responsible for consulting with its advisors concerning any obligations, including, but not limited to, any obligations pursuant to federal and state securities and income tax laws, it may have with respect to subsequent assignees of the Installment Payments if and when any such future disposition of the Installment Payments may occur;

5. The Purchaser has authority to obtain the rights, title and interest set forth under the Installment Purchase Contract and the Conveyance Agreement and all requisite corporate or other necessary action by the Purchaser for the delivery of this Bank Letter, and the execution of the Installment Purchase Contract and the Conveyance Agreement have been duly and validly completed;

6. The Purchaser acknowledges that rights, title and interest described under the Installment Purchase Contract are transferable with certain requirements, as described in the Installment Purchase Contract. The Purchaser shall not assign or offer the Installment Purchase Packet Pg. 103 Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing A-3
Contract, or any participation therein, for sale or transfer without complying with all applicable securities laws;

7. The Purchaser acknowledges that the Installment Purchase Contract and the Conveyance Agreement are exempt from the requirements of Rule 15c2-12 of the Securities and Exchange Commission and that the City has not undertaken to provide any initial or continuing disclosure with respect to the Installment Purchase Contract and the Conveyance Agreement, but that the City has agreed to provide certain other ongoing financial information to the Purchaser pursuant to the Installment Purchase Contract;

8. The purchase price of the Installment Purchase Contract and the Conveyance Agreement was negotiated in an arm’s-length transaction between the Purchaser, a willing buyer of the Installment Purchase Contract and the Conveyance Agreement, and the City, a willing seller of the Installment Purchase Contract and the Conveyance Agreement, neither being under any compulsion to buy or sell. The Purchaser is not relying upon the City, Kutak Rock LLP, or any of their affiliates or employees for advice as to the merits and risks of the extension of credit with respect to the Installment Purchase Contract or the Conveyance Agreement. The Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed credit decision; and
(Remainder of page intentionally left blank)
Packet Pg. 104 Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing A-4

9. The undersigned is a duly appointed, qualified, and acting officer of the Purchaser and is authorized: (i) to cause the Purchaser to make the representations and warranties contained herein on behalf of the Purchaser; and (ii) to cause any instruments and documents and certificates, including this Bank Letter, required to be executed by the Purchaser in connection with the purchase of the rights, title and interest set forth under the Installment Purchase Contract to be so executed and delivered.

Very truly yours,

BANNER BANK
By:

Authorized Officer
[Signature Page to Bank Letter]
Packet Pg. 105 Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing B-1

APPENDIX B

ISSUER CLOSING CERTIFICATE
Pursuant to the Placement Agent Engagement Agreement, dated November 5, 2024 between City of Gonzales and Hilltop Securities (the “Agreement”), as City Manager of the Issuer duly authorized to execute this Certificate on behalf of the Issuer, I hereby certify:
 The representations and warranties of the Issuer contained in the Agreement are true and correct as if made on the date hereof;
 The Issuer has complied with and fully satisfied all of its agreements with and obligations to the Placement Agent under this Agreement; and
 As of its date and the date hereof, the information contained in the Placement Materials is complete, true, and accurate and such information does not contain any untrue statement of a material fact or state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

Carmen Gil, City Manager
City of Gonzales
Packet Pg. 106 Attachment: Exhibit C - Hilltop Securities Placement Agent Agreement (3149 : Resolution No. 2024-67 Wastewater System Financing

Page 1 of 5 ends

October 30, 2024
City of Gonzales, California
Attention: Eric Scriven, City’s Financial Advisor, NHA | Advisors Via E-mail: [email protected]
RE: Response to Proposal Request for the Proposed Not to Exceed $10,000,000 Revolving Line of Credit
Dear Mr. Scriven:

We are pleased to offer this financing proposal from Banner Bank (the “Bank”) in the form of a not to exceed $10,000,000 Revolving Line of Credit, Series 2024 (the “Facility”). Under this financing proposal, the City of Gonzales, CA (the “City”) anticipates drawing on a revolving line of credit Facility provided by the Bank under flexible draw and payment terms.

This proposal letter does not constitute a commitment by the Bank to issue the Facility but is for the purpose of substantially representing the terms and conditions, based upon information described in the Proposed Financing Terms, received September 3, 2024, from NHA|Advisors (the “Term Sheet”).

Upon the acceptance of the requirements described herein, the Bank will seek formal approval within the Bank to extend the Facility under the conditions, situation, and documents outlined in the Term Sheet. The bank’s final credit approval period would be approximately 15 or less working days. Rates and fees herein are firm until December 20, 2024. The Bank’s response is set forth in Exhibit A below.

The Bank values and offers a personalized approach to municipal banking services. During this time, the Bank’s counsel, relationship manager, and public finance officers will work with the City’s team on standard and customary due diligence items with a goal to close this transaction to meet the City’s timeline.

On behalf of Banner Bank, we sincerely thank you for the opportunity to partner with the City on financing its projects of important impact on the community we serve together. Should you wish to proceed with obtaining formal credit approval under the general terms and conditions outlined herein, please acknowledge the City’s acceptance by signing on the following page and returning one signed document.

Very truly yours,
Michael Kearl, Vice President Sr Commercial Banking
Office: (858) 754-6870
E-mail: [email protected]

EXHIBIT D
Packet Pg. 107 Attachment: Exhibit D - Banner Bank Term Sheet (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) City of Gonzales, CA
Response to Bid Requirements
The contents of this document are confidential and are not to be shared with outside third parties with the exception of the City’s accountants and attorneys unless required to do so by a public record request pursuant to the California Public Records Act.

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER CALIFORNIA LAW.

ACCEPTED BY:

City of Gonzales
By:

As:

Packet Pg. 108 Attachment: Exhibit D - Banner Bank Term Sheet (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) City of Gonzales, CA
Response to Bid Requirements

Page 3 of 5 ends

Exhibit A
Banner Bank’s response to the Bid Requirements
Maximum
Facility
Amount:
$10,000,000
Facility
Purpose:

To provide working capital support and bridge loan draws due from the State of California Water Quality Resources Board State Revolving Loan Fund loan related to The City’s Industrial Wastewater System construction project (the “Project”).

Facility Tenor 2.5-year period with an option to renew for 6-month period subject to approval by the Bank.

Interest Rate,
Tax status, Bank
Expense:
 Tax-exempt rate:
a. Fixed. 4.340%, fixed over tenor, or
b. FloaƟng. 1-month SOFR index + fixed spread of 1.50% subject to minimum floor rate of 3.00%. If the SOFR + fixed spread falls below the floor, the interest rate will sƟll be at the floor %-rate.  Day count fracƟon of 30/360-day basis for all rates.
 Bank fee: 0.25% of par ($25,000)
 Default rate. +2.00% for each taxable and tax-exempt rate  Interest payment frequency is flexible upon the needs of the City, semi-annual or more frequent.

Security: Pledge of (i) takeout from State of California Water Quality Resources Board State Revolving Loan Fund (“SRF”) loan commitment and (ii) net revenues of the City’s Wastewater System, such net revenue pledge on parity with SRF loan pledge.

Legal fees: The City is responsible for the Bank’s attorney fees not to exceed $15,000.00. On this Facility issue, the Bank is represented by attorney George Mardikes, Mardikes Law LLC.

The City is responsible for its bond counsel fees and other costs of issuance.

Construction
Fund:

A Construction Fund is to be established with the Bank. Any proceeds from the State of California Water Quality Resources Board State Revolving Loan Fund (SRF) loan commitment shall be first deposited to the Construction Fund, and immediately used to repay any outstanding balance on the Facility.

Disbursements from the Construction Fund shall be made by the Bank upon receipt of draw request certificate. Procedure for disbursement and certifications based on standard and customary procedures for the character and nature of these type of transaction and financing, including draw provisions describe below.

Packet Pg. 109 Attachment: Exhibit D - Banner Bank Term Sheet (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) City of Gonzales, CA
Response to Bid Requirements

Page 4 of 5 ends

Draw
Provisions:

Conditions must be met to draw on the Facility mirror those of the SWRCB program, including
 Draw requests shall be in same form as SWRCB draw requests, including supporting documents;
 A third-party engineer certifies inspection and compliance with agreed scope of work, project standards, and work progressing in line with the project schedule;
 City demonstrates that work adheres to budget. If there are budget overruns, the City must either secure additional funding or modify the project scope with approval from the SRF program;
 Compliance with environmental regulations, insurance, bonding in place in accordance with SWRCB program.

Draws requested as needed will be available from the date of closing through maturity.

Multiple monthly draws are permitted. Draws generally will be deposited on the same day requested to a specified Banner Bank account.

This facility is a revolving credit facility; amounts that are borrowed and repaid may be borrowed again, subject to the approval and limitations acceptable to the Bank at its own discretion.

Amounts outstanding under the Facility, excluding funded issuance costs, must not exceed the remaining amounts due from State of California Water Quality Resources Board State Revolving Loan Fund loan related to the Project.

Prepayment
and
Termination
Provisions:

Notice of termination or extension, shall be given by the City not less than 30 days prior to the maturity date.

Interest will be calculated on the outstanding balance of the Facility based on the 30/360-day count basis.

Any outstanding principal and interest balance will be due in full at Maturity, unless renewed or extended by the Bank and Borrower prior to maturity. All payments (including but not limited to debt service payments, prepayments, etc.) shall be first applied to interest and then to principal as of the date actually received.

Upon default, standard and customary termination covenants for this type of Facility and financing transaction of this nature apply.

Credit
Approval:

The Bank requires no other requirements necessary beyond the standard and customary due diligence material for this type of Facility and financing transactions of this nature.

Reporting
Requirements:

The Bank requires no other reporting requirements beyond the standard and customary reporting standards for this type of Facility and financing transactions of this nature.

Packet Pg. 110 Attachment: Exhibit D - Banner Bank Term Sheet (3149 : Resolution No. 2024-67 Wastewater System Financing Documents) City of Gonzales, CA
Response to Bid Requirements

Page 5 of 5 ends

Other
Conditions or
Material Terms:

The Bank requires no other covenants beyond the standard and customary covenants for this type of Facility and financing transactions of this nature. In the event of default, the Bank shall be entitled to all remedies under the financing documents.

Upon the occurrence of an event of default under this Facility, the financing documents will provide remedies to the Bank customary for transactions of this nature, exercise rights and remedies under law, equity or under the terms of the financing agreement and other legal documents associated with this Facility.

Documentation: Final form Facility documentation to be prepared by City’s bond counsel and subject to review and acceptance by the Bank and the Bank’s legal counsel. Bank shall receive a legal opinion from the City’s bond counsel, satisfactory to the Bank, (1) stating that the City’s bond indebtedness and all the terms and conditions of applicable Issue documents and transactions described therein are in full compliance with California State and Federal Law, are binding upon and enforceable against the City and do not violate the City’s formation or constituent documents, or any applicable law;
(2) stating that the indebtedness being incurred is a legal and valid obligation of the City;
(3) if applicable, stating the interest income to the Bank is excluded from federal income tax pursuant Section 103 of the United States IRS Code; (4) confirming the authority of the City to incur the indebtedness and issue the Facility; and
(5) confirming that the City’s Facility Resolution authorizing this indebtedness and irrevocably pledging the security for repayment of this indebtedness is valid and authorized.

Packet Pg. 111 Attachment: Exhibit D - Banner Bank Term Sheet (3149 : Resolution No. 2024-67 Wastewater System Financing Documents)

CITY OF GONZALES

CONSTRUCTION LOAN FOR INDUSTRIAL WASTEWATER SYSTEM
NOVEMBER 18, 2024
Packet Pg. 112 Attachment: Powerpoint presentation (3149 : Resolution No. 2024-67 Wastewater System 2 Background
The City secured $29M in funding from the State Water
Resources Control Board (SWRCB) for construction of the Industrial Wastewater System
 The City must submit reimbursement claims for costs incurred  The reimbursement claim occurs after construction and consultant costs has been incurred and is due and payable by the City
 It is anticipated that a reimbursement check from SWRCB will generally take 3 - 5 months
 Due to the delay in reimbursement, interim funding will bridge the gap between timely payment of project costs and receiving reimbursement from SWRCB
Packet Pg. 113 Attachment: Powerpoint presentation (3149 : Resolution No. 2024-67 Wastewater System 3 Interim Funding Plan
A revolving bank loan was determined to be best option for City’s interim funding
 Allows the City to only have an amount outstanding at any given time that is needed to bridge the cashflow gap, like a line of credit
 Structure limits the City’s interest cost
Proposals were requested from many banks; City received five proposals
 Banner Bank offering the lowest and only fixed interest rate option at fixed rate of 4.34%
Packet Pg. 114 Attachment: Powerpoint presentation (3149 : Resolution No. 2024-67 Wastewater System 4 Interim Loan Interest Cost & Costs of Issuance
Based on the estimated Industrial Wastewater Treatment Project construction schedule, assuming a 4-month reimbursement from SWRCB, estimated total interest cost could be $328,215 during the Project timeline
 Estimates assume that the City’s largest principal balance outstanding amount on the Wastewater Interim Loan reaches $7,704,799
 Repayment of such principal amount together with estimated interest cost could be $8,033,014
 The actual amount of the outstanding and total interest may be more or less, depending on the construction schedule and SWRCB reimbursement timing
Issuance costs associated with the 2024 Wastewater
Construction Loan are expected to be approximately $132,000 Packet Pg. 115 Attachment: Powerpoint presentation (3149 : Resolution No. 2024-67 Wastewater System 5 Documents Being Approved Tonight
Authorizing Resolution:
 Authorize the City to enter into a Conveyance Agreement and Installment Purchase Contract to secure interim funding in an amount not to exceed $10,000,000 and authorizes certain other actions.

Conveyance Agreement:
 The Conveyance Agreement will be entered into between the City and Banner Bank. City conveys the project to the Bank in exchange for payment of up to $10,000,000. The Bank immediately resells the Property to the City pursuant to the Installment Purchase Contract.

Installment Purchase Contract:
 This agreement is between the City and Banner Bank establishing that the City will finance certain improvements to and provide working capital for the City’s industrial wastewater system.

The City will pay the Installment Payments to the Bank to purchase such improvements. This agreement also contains covenants for the benefit of Lender, including a covenant to set rates and charges in the future at levels that are sufficient to repay the Loan, if necessary.

Hilltop Securities Placement Agent Agreement:
 Hilltop Securities Agreement with the City, which sets forth Hilltop Securities’ work to be performed for the 2024 Wastewater Interim Loan. Such fees set forth therein were previously approved by City Council.

Packet Pg. 116 Attachment: Powerpoint presentation (3149 : Resolution No. 2024-67 Wastewater System 6 Finance Team Professionals
Project Oversight: City of Gonzales
Financial Advisor: NHA Advisors
Bond and Disclosure Counsel: Kutak Rock
Placement Agent: Hilltop Securities
Lender: Banner Bank
Packet Pg. 117 Attachment: Powerpoint presentation (3149 : Resolution No. 2024-67 Wastewater System 7 Timeline
November 18,
2024
• City Council
Approval
November 19-
22, 2024
• Finalize and
execute closing
documents
November 26,
2024
• Close the Interim
Loan; City draws
funds, as necessary
Packet Pg. 118 Attachment: Powerpoint presentation (3149 : Resolution No. 2024-67 Wastewater System City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 18, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Final Draft Salinas Valley Safe Routes to School Plan

RECOMMENDATION
Staff recommends that the City Council receive a presentation on the final draft “Salinas Valley Safe Routes to Schools Plan” and provide staff with any changes or adjustments.

BACKGROUND
The Transportation Agency for Monterey County, Monterey County Health Department, Ecology Action, and the Cities of Gonzales, Soledad, Greenfield, and King City partnered to develop the “Salinas Valley Safe Routes to School Plan” (Plan). The three-year planning process identified barriers to safe access to 22 public schools in South Monterey County cities and recommended infrastructure and noninfrastructure improvements.

Recommendations included in the Plan are designed to help address school-based traffic congestion and improve student health by fostering increased biking, walking, and carpooling. The project team, comprised of staff from the Transportation Agency, County Health Department, Public Works staff from the four cities, School Districts, and non-profit Ecology Action, have engaged administrators, parents, and students in school bike/walk assessments, mapping activities, street demonstrations, and surveys.

The Salinas Valley Safe Routes to School Plan kicked off in spring 2022 and started outreach in the City of Gonzales in fall 2022. The planning team conducted walking audits at each of the three public schools in Gonzales, gave six presentations at parent meetings and two presentations to the Gonzales Youth Council, and received 45 responses to an online parent survey. In 2023, the planning team drafted and received community input on a list of infrastructure and non-infrastructure recommendations around Gonzales schools. Starting in fall 2022, the planning team planned and implemented four pilot projects, one in each city, to demonstrate some of the recommendations included in the plan and get community AGENDA
ITEM
17 Packet Pg. 119
feedback. The Gonzales pilot project was held on 5th Street in spring 2023. The planning team also formed Steering Committees in each of the four cities. Steering Committees led a democratic process, called Participatory Budgeting, where community members voted to decide how public funds are spent.

TAMC is providing up to $250,000 to each city to implement the highest voted projects, and the City Council approved following projects for Gonzales in August 2024:

1. Pedestrian Improvements at the Fifth Street/Rincon Road intersection

2. Pedestrian Improvements along Fifth Street and the on and off ramps at the Fifth Street/US 101 Interchange.

REVIEW AND ANALYSIS
The project team is now seeking input on the Draft Salinas Valley Safe Routes to School Plan, including infrastructure recommendations to improve access to the three public schools in Gonzales. The Executive Summary is included as an attachment to this report. The Final Plan is anticipated to be adopted by the TAMC Board in December 2024. Once the Plan has been adopted, the Cities of Gonzales, Soledad, Greenfield, and King City and TAMC staff will pursue funding to implement recommendations in the Plan.

The Plan includes Citywide recommendations for bicycle and pedestrian corridor improvements, as well as recommendations around each school site and non-infrastructure recommendations for education and encouragement programs. All recommendations are planning level and require further analysis prior to design and construction.

The projects in this plan will be implemented as funding becomes available. With limited funding, the City of Gonzales must decide how to prioritize the recommendations. The Plan identifies a list of six high-priority corridors that were evaluated based on common grant criteria. These corridors were scored to help City staff and decision-makers prioritize projects and identify the most competitive projects for various grant opportunities. Grant programs often prioritize large-scale, corridor-wide improvements, and future grant applications are likely to focus on improvements to one or more streets in Gonzales rather than individual projects.

Some projects that are low cost and have community support can be incorporated into the City’s maintenance programs and installed as part of ongoing road maintenance. City staff will review the Safe Routes to Schools Plan project list when planning maintenance projects to look for ways to incorporate bike and pedestrian improvements. This allows for a highly cost-effective strategy for implementing the projects included in this plan. For larger projects, leveraging local funds with additional grant funding will be critical. Having an approved Safe Routes to Schools Plan in place is a strategy to make Salinas Valley cities more competitive in future grant applications for construction funding.

In conclusion, staff recommends that the City Council receive a presentation on the draft Salinas Valley Safe Routes to Schools Plan and provide any feedback on any changes they wish to see in the final plan.

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

Explain: The projects identified in the Salinas Valley Safe Routes to Schools Plan will improve safety and enhance the quality of life of Gonzales residents. Having an adopted Safe Routes to Schools Plan will help the City of Gonzales be more competitive in grant applications for infrastructure improvements.

Packet Pg. 120
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Please see explanation above for the Mission.

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

ALTERNATIVES
The Council could direct City staff to revise the selected projects.

BUDGET IMPACT
This Plan was funded through a Caltrans Sustainable Transportation Planning Grant and $126,501 of Measure X Safe Routes to School Program funds through TAMC. There is no impact to the City’s General Fund.

CONCLUSION
Staff recommends that the City Council receive a presentation on the final draft “Salinas Valley Safe Routes to Schools Plan” and provide staff with any changes or adjustments.

Attachments:

1. Executive Summary of Salinas Valley Safe Routes to School Plan

2. Gonzales Safe Routes to Schools Plan
Packet Pg. 121
FUNDED BY: IN PARTNERSHIP WITH:

Packet Pg. 122 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 2
Acknowledgements
Gonzales City Council
Jose Rios, Mayor
Scott Funk, Mayor Pro Tempore
Liz Silva, Councilmember
Lorraine Worthy, Councilmember
Maria Orozco, Councilmember
City of Gonzales
Patrick M. Dobbins -
Public Works Director/City Engineer
Greenfield City Council
Robert White, Mayor
Ariana Rodriguez, Mayor Pro Tempore
Yanely Martinez, Councilmember
Rachel Ortiz, Councilmember
Drew Tipton, Councilmember
City of Greenfield
Jamie Tugel - Public Works Director
King City Council
Mike Le Barre, Mayor
Carlos Victoria, Mayor Pro Tempore
Robert Cullen, Councilmember
Oscar Avalos, Councilmember
Carlos DeLeon, Councilmember
King City
Octavio Hurtado, PE, QSD -
Public Works Director/City Engineer
Soledad City Council
Anna Velazquez, Mayor
Maria Corralejo, Mayor Pro Tempore
Fernando Cabrera, Councilmember
Fernando Ansaldo-Sánchez, Councilmember
Evarista Bañuelos, Councilmember
City of Soledad
Donald Wilcox, PE -
Public Works Director/City Engineer
Alex C. Ramos, EIT - Assistant Engineer
Leon D. Gomez, PE, QSD -
Sr. Project Manager, Harris & Associates
Packet Pg. 123 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Acknowledgements 3
Project Funding Partner
California Department of Transportation
Orchid Monroy-Ochoa -
Caltrans District 5 Division of Planning
Tyler LeSage, Regional Planning Liaison
Monterey County - Caltrans District 5
Project Stakeholders
Transportation Agency for Monterey County
(TAMC)
Gonzales Unified School District
Greenfield Union School District
King City Union School District
Soledad Unified School District
South Monterey County High School District
Partner Agencies
Transportation Agency for
Monterey County
Todd Muck, Executive Director
Ariana Green, Principal Transportation Planner
Amelia Conlen, Senior Transportation Planner
Janneke Strause,
Associate Transportation Planner
Aaron Hernandez, Transportation Planner
Ariadne Sambrano, Transportation Planner
Monterey County Health Department
Vicente Lara, Program Manager II
Angelica Chavez,
Chronic Disease Prevention Coordinator
Christina Santana,
Chronic Disease Prevention Coordinator
Elvira Ramirez Molina, Community Service Aid III
Jeff Domalanta,
Chronic Disease Prevention Specialist II
Ecology Action
Shelby Cramton, Senior Planner
Gino Garcia, Senior Program Specialist - Planning
Chloe Ortiz, Program Coordinator II
Ahtziri Carranza, Program Coordinator I
Alta Planning + Design Consultant Team
Ashley Haire, PE, Principal
Devan Gelle, Planner
Packet Pg. 124 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 4
Executive Summary
The Salinas Valley Safe Routes to Schools Plan describes communityidentified needs and recommendations for infrastructure projects and programs that support walking, bicycling, and carpooling to 22 schools in Gonzales, Soledad, Greenfield, and King City. The plan also identifies possible funding sources and implementation priorities. The recommendations in this plan are aimed at supporting healthy communities, improving affordable transportation options for low-income and vulnerable residents, and helping the four cities improve safety and meet statewide goals to address climate change by reducing vehicle miles traveled.

This plan was funded with a Sustainable Communities Transportation Planning Grant from the California Department of Transportation (Caltrans) and local matching funds, and it is aligned with the regional and statewide plans and concepts included in the Caltrans District 5 Active Transportation Plan.

The vision for all students and families following the implementation of the Salinas Valley Safe Routes to Schools Plan is as follows:
• I can walk or bike to school safely.
• My trip to school helps our environment, builds healthy habits, and saves my family money.
• I am more connected to my neighborhood and community through my trip to school.
• I have the skills and confidence I need to travel to school safely without using a car.

Packet Pg. 125 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) I CAN
walk or bike to
school safely.

I KNOW
that my trip to school
helps our environment,
builds healthy habits, and
saves my family money.

I HAVE
the skills and confidence
I need to travel to school
safely without using a car.

I AM
more connected to my
neighborhood and
community through my
trip to school.

OUR
VISION
Packet Pg. 126 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 6
Plan Contents
The introduction and outreach chapters include an overall introduction and a summary of outreach for the project. The remainder of the plan is divided into four sections, one for each of the four cities.

Chapter 1: Introduction. The first chapter describes the purpose of the plan, the benefits of walking and biking to school, and the plan’s relationship to other local planning efforts.

Chapter 2: Outreach. This chapter describes the outreach goals for the project and summarizes the various outreach methods used to involve community members in the planning process.

Chapter 3: Gonzales.
• 3A. Existing Conditions. This section describes the demographics and commute patterns of Gonzales residents, and existing bike, pedestrian, and transit facilities. It also includes an analysis of bicycle and pedestrian collisions and a description of the existing bicycle and pedestrian programs that are currently available to residents.
• 3B. Outreach. This section describes the public outreach that took place in Gonzales, including community survey data from the temporary pilot project that was installed as part of the planning process. • 3C. Recommendations. This section contains profiles of each of the three school sites, with information on the existing conditions at each school and infrastructure recommendations for making it easier and safer to walk and bike to school. It also includes a guide to the types of infrastructure that are recommended in this plan.
• 3D. Implementation, Reporting, and Maintenance. The final section discusses opportunities to fund and complete the recommended projects and programs and provides a list of high-priority corridors. It also includes a list of funding sources that can be used to finance these projects and programs, and the methods the City will use to maintain current and future pedestrian and bicycle infrastructure.

Packet Pg. 127 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Executive Summary 7
Chapter 4: Greenfield.
• 4A. Existing Conditions. This section
describes the demographics and commute
patterns of Greenfield residents, and
existing bike, pedestrian, and transit
facilities. It also includes an analysis of
bicycle and pedestrian collisions and a
description of the bicycle and pedestrian
programs that are currently available
to residents.
• 4B. Outreach. This section describes
the public outreach that took place in
Greenfield, including community survey
data from the temporary pilot project that
was installed as part of the
planning process.
• 4C. Recommendations. This section
contains profiles of each of the six school
sites, with information on the existing
conditions at each school and infrastructure
recommendations for making it easier
and safer to walk and bike to school.

It also includes a guide to the types of
infrastructure that are recommended in
this plan.
• 4D. Implementation, Reporting, and
Maintenance. The final section discusses
opportunities to fund and construct the
recommended projects and programs and
provides a list of high-priority corridors.

It also includes a list of funding sources
that can be used to finance these projects
and programs, and the methods the City
will use to maintain current and future
pedestrian and bicycle infrastructure.

Chapter 5: King City.
• 5A. Existing Conditions. This section
describes the demographics and commute
patterns of King City residents, and existing
bike, pedestrian, and transit facilities. It
also includes an analysis of bicycle and
pedestrian collisions and a description of
the bicycle and pedestrian programs that
are currently available to residents.
• 5B. Outreach. This section describes the
public outreach that took place in King City,
including community survey data from the
temporary pilot project that was installed as
part of the planning process.
• 5C. Recommendations. This section
contains profiles of each of the five school
sites, with information on the conditions
at each school and infrastructure
recommendations for making it easier
and safer to walk and bike to school.

It also includes a guide to the types of
infrastructure that are recommended in
this plan.
• 5D. Implementation, Reporting, and
Maintenance. The final section discusses
opportunities to fund and construct the
recommended projects and programs and
provides a list of high-priority corridors.

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Chapter 6: Soledad.
• 6A. Existing Conditions. This section describes the demographics and commute patterns of Soledad residents, and existing bike, pedestrian, and transit facilities. It also includes an analysis of bicycle and pedestrian collisions and a description of the bicycle and pedestrian programs that are currently available to residents.
• 6B. Outreach. This section describes the public outreach that took place in Soledad, including community survey data from the temporary pilot project that was installed as part of the planning process. • 6C. Recommendations. This section contains profiles of each of the eight school sites, with information on the conditions at each school and infrastructure recommendations for making it easier and safer to walk and bike to school. It also includes a guide to the types of infrastructure that are recommended in this plan.
• 6D. Implementation, Reporting, and Maintenance. The final section discusses opportunities to fund and construct the recommended projects and programs and provides a list of high-priority corridors. It also includes a list of funding sources that can be used to finance these projects and programs, and the methods the City will use to maintain current and future pedestrian and bicycle infrastructure.

Appendices: The appendices include outreach materials, survey data from the parent survey and the temporary installations, the complete project list for all 22 schools, and public comments received for all school sites.

Installation of the Soledad pilot project
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Goals and Objectives
The cities of Gonzales, Greenfield, King City, and Soledad and partner agencies have set the following goals and objectives for the future of Safe Routes to Schools, to be accomplished through the projects and programs in this plan.

Goal 1. Encouragement: The majority of children will arrive at school by foot, bicycle, scooter, skateboard, bus, or carpool.
• Objective 1.1: Identify and promote a broad spectrum of projects to provide a connected network of active transportation options along Safe Routes to Schools corridors and connections.
• Objective 1.2: Design and construct street improvements that are accessible and comfortable for all ages and abilities. Incorporate tree planting into active transportation projects to provide shade for people who are walking and bicycling.
• Objective 1.3: Transportation Agency for Monterey County (TAMC), schools, and the cities will support events that encourage active transportation to school, such as “Walk & Roll to School,” at least twice a year.
• Objective 1.4: Work with schools and Safe Routes to Schools partners to provide walking school buses at all elementary schools. • Objective 1.5: Work with schools and Safe Routes to Schools partners to promote Safe Routes to Schools corridors as the preferred routes to school.

Goal 2. Safety: Zero collisions involving bikes or pedestrians that result in injury or death.
• Objective 2.1: Prioritize Safe Routes to Schools projects that address fatal and severe-injury crashes.
• Objective 2.2: Prioritize projects on school routes that reduce traffic speeds to 25 mph or less and increase the separations between pedestrians and bicyclists and motor vehicle traffic.
• Objective 2.3: Enhance low-stress alternative routes to high-stress corridors.
• Objective 2.4: Prioritize safety over travel speed, convenience, and congestion reduction in project design.

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• Objective 2.5: Crossing guards will be present at all elementary schools. • Objective 2.6: Provide annual updates on safety projects and traffic collisions to governing bodies.

Goal 3. Education: All children in the Salinas Valley will receive traffic safety education.
• Objective 3.1: Incorporate bicycle and pedestrian safety education into the curriculum in all elementary schools.
• Objective 3.2: By second grade, all children will receive pedestrian safety training in school; by fifth grade, all children will receive bike safety training in school.
• Objective 3.3: By high school, students will know the basics of bike maintenance and have opportunities to practice these skills at school or in the community.

Goal 4. Engagement: Engage the greater community to create safe environments around schools.
• Objective 4.1: Run annual community-wide campaigns that encourage neighbors to keep eyes on the streets and drivers to slow down around schools.
• Objective 4.2: Enforce traffic laws in school zones without overburdening offenders. An example would be a diversion program that requires school-zone traffic offenders to assist with crossing guard duties (Austin, TX program model).
• Objective 4.3: Recruit volunteers from the community to assist with Safe Routes to Schools programs such as walking school buses and crossing guards.

Goal 5. Equity: Ensure that all community members have equitable access to schools and Safe Routes to Schools programming.
• Objective 5.1: Prioritize infrastructure projects that serve transportationdisadvantaged and special-needs populations. • Objective 5.2: Provide opportunities for a diverse group of community members to take leadership roles in the development and implementation of Safe Routes to Schools projects and programs. An example would be positions on a Safe Routes to Schools steering committee. • Objective 5.3: Provide access to active transportation and safety equipment such as bicycles, scooters, helmets, and lights.

Packet Pg. 131 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Executive Summary 11
Outreach Summary
Public input was the foundation of the Safe Routes to Schools Plan.

The planning team developed an outreach plan and sought input from community members to understand school transportation needs and barriers and to refine their draft recommendations. Parent and student surveys, presentations at parent meetings, and walking audits with school staff all contributed to the team’s understanding of barriers to walking and biking to school in Salinas Valley cities and the types of improvements community members would like to see.

In addition, Steering Committees were formed in each of the four cities to lead a participatory budgeting process. This is a democratic process in which community members decide how to spend part of a public budget. The Steering Committees were made up of representatives from each city, including students, parents, school staff, advocates, and residents. Each Steering Committee met monthly for nine months to review project recommendations and design an election process for learning from the community about the highest priority projects in the Safe Routes to Schools Plan. TAMC allocated $250,000 per city to construct the highest-priority projects.

Packet Pg. 132 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) to online parent survey

STEERING

COMMITTEES

OUTREACH SUMMARY
42 PRESENTATIONS

RESPONSES
1,109
4 formed, in Gonzales,
Soledad, Greenfield,
and King City
4 26

RESPONSES
15,000+

PARENTS REACHED
to draft
recommendations survey
at virtual parent meetings
through Parentsquare or
social media

PROJECTS AWARDED FUNDING
through participatory budgeting process
21 $1M

IN PROJECT FUNDING
awarded from TAMC

SCHOOL ZONE
to student survey
1,824

RESPONSES

DEMONSTRATION

PROJECTS
in Gonzales, Soledad,
Greenfield, and King City
Packet Pg. 133 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Executive Summary 13
Project Prioritization
Key routes to school in each of the four cities were ranked to help decision makers and City staff prioritize projects and identify the most competitive projects for various grant funding opportunities.

Grant programs often prioritize larger-scale, corridor-wide improvements, and future grant applications will likely focus on improvements to one or more streets in each city.

The corridors below were evaluated on four criteria aligned with the vision and goals of this plan and with common grant criteria. Equity scores are based on two sources: free or reduced-price meal data, which is an indicator of family income, and the Healthy Places Index map, which shows data on health indicators such as education, job opportunities, and clean air and water. Each corridor was assigned a number from 0 to 100 based on the criteria in Table 1.

Table 1: Criteria for Project Prioritization
Criterion Description Max Points
Safety
The following points are awarded for bicycle and pedestrian collisions in the last 10 years within 150 ft of the corridor, for a maximum of 30 points:
• 5 points per fatal or severe-injury collision.
• 1 point per other-visible-injury or complaint-of-pain collision. 30 Access to Key
Destinations
10 points for every school within 500 ft of the corridor and 5 points for every park, library, and recreation center, for a max of 25 points.
25 Equity 20 points if the project is located within an area designated as disadvantaged. 20
CommunityIdentified
Need
15 points if the project or location was identified by 10+ members of the community during project outreach.
10 points if the project or location was identified in one or more community planning documents.
25 TOTAL 100
Packet Pg. 134 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 14
Street Cross Street 1 Cross Street 2 Score
5th Street Alta Street Fanoe Road 100
Elko Street 5th Street 1st Street 70
Center Street 10th Street A Street 60
7th Street / Cielo Vista Alta Street Del Monte Drive 45 Belden Street 10th Street C Street 40
Longhorn Drive Hereford Drive Devon Way 25
Street Cross Street 1 Cross Street 2 Score
Apple Avenue 13th Street 2nd Street 100
Oak Avenue 13th Street 2nd Street 100
Walnut Avenue 12th Street 2nd Street 100
Elm Avenue 13th Street 3rd Street 95
El Camino Real Cherry Avenue Hwy 101 off-ramp 95
9th Street Elm Avenue Apple Avenue 55
12th Street Harvest Way Elm Avenue 50
7th Street / Moreno Avenue Tyler Avenue End of street 40 Table 2: Prioritized Corridors, Gonzales
Table 3: Prioritized Corridors, Greenfield
Prioritized Corridor Lists
The tables below show the highest-priority corridors for Safe Routes to Schools improvements in each of the four cities.

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Street Cross Street 1 Cross Street 2 Score
Broadway Street River Drive 1st Street 100
Mildred Avenue San Antonio Drive Broadway Street 95
San Antonio Drive Broadway Street Metz Road 80
Russ Street King Street Pearl Street 80
Pearl Street San Lorenzo Avenue 1st Street 60
King Street Sandringham Street Beech Street 60
Ellis Street Mildred Avenue 1st Street 55
Collins Street Mildred Avenue 3rd Street 55
Division Street Canal Street 1st Street 50
Street Cross Street 1 Cross Street 2 Score
Main Street Gabilan Drive Front Street 95
Orchard Lane/3rd Street Palm Avenue Terraza Street 80
Gabilan Drive San Vicente Road Bryant Canyon Road 80
Metz Road East Street Tiburon Place 80
Market Street San Vicente Road Dixi Street 75
Monterey Street West Street 8th Street 70
West Street Front Street Cuesta Court 65
Front Street East Street Nestles Street 50
Table 4: Prioritized Corridors, King City
Table 5: Prioritized Corridors, Soledad
Packet Pg. 136 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 16
School Location Project Description
All 5th Street at Hwy 101
North Entrance
Study options to install roundabout, study quick-build curb extensions, and install high-visibility crosswalks and signage.

All 5th Street at Hwy 101
South Entrance
Study options to install roundabout, study quick-build curb extensions, and install high-visibility crosswalks and signage.

All 5th Street at Rincon
Road
Install curb extensions to move the existing crosswalk
closer to the center line on 5th Street. Install high-visibility crosswalks on north and south legs of intersection. Relocate stop bar to prevent cars from encroaching on crosswalk.

School Location Project Description
Vista Verde Middle,
Oak Avenue
Elementary
12th Street between
Oak and Elm Avenues
Install 0.24 miles of sidewalk, high-visibility
crosswalks, curb ramps, and flashing stop
signs.

All schools Citywide Upgrade signs around all school
campuses.

Arroyo Seco Academy
12th Street between
Cherry Avenue and
Harvest Way
Install 0.12 miles of sidewalk on 12th
Street.

Vista Verde Middle,
Greenfield High Heidi Drive Install high-visibility crosswalk and school crossing signage.

Table 6: Participatory Budgeting Funded Projects, Gonzales Table 7: Participatory Budgeting Funded Projects, Greenfield Participatory Budgeting
Approved Projects
Participatory budgeting is a democratic process in which community members decide how to spend part of a public budget. TAMC allocated $250,000 per city to construct the highest-priority projects, and Steering Committees were formed in each of the four cities to lead a participatory budgeting process to determine the highest priority projects. The following projects were awarded funding through this process.

Packet Pg. 137 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Executive Summary 17
School Location Project Description
Chalone
Peaks Middle
Intersection of San Antonio
Drive and Spreckels Road
Install stop bars and high-visibility crosswalks
on each leg of intersection.

King City High Intersection of Canal Street
and Division Street
Install high-visibility crosswalks and ADAcompliant curb ramps on each corner of the intersection.

Del Rey
Elementary
Intersection of King Street
and Russ Street
Install high-visibility crosswalks and station a
crossing guard at this intersection.

Del Rey
Elementary
Intersection of King Street
and 3rd Street
Install high-visibility crosswalks and ADAcompliant curb ramps on each corner of the intersection.

Santa Lucia
Elementary
Intersection of Russ Street
and Ulrey Street
Install high-visibility crosswalks on the south
and east legs of the intersection, and install
advance yield markings.

Santa Lucia
Elementary
Intersection of 3rd Street
and Ulrey Street
Install high-visibility crosswalks on the north,
south, and west legs of the intersection.

Santa Lucia
Elementary
Intersection of Collins
Street and Mildred Avenue
Install high-visibility crosswalks on the north and
east legs of the intersection and ADA-compliant
curb ramps on the northeast, northwest, and
southeast corners.

Santa Lucia
Elementary
Intersection of Collins
Street and Patterson Street
Install high-visibility crosswalks on the north
and south legs of the intersection.

All schools Ellis Street between
Mildred Ave and 2nd Street
Install high-visibility crosswalks on the north
and south legs of each intersection.

All schools Intersection of Russ Street
and Bassett Street
Install high-visibility crosswalks on the east and
west legs of intersection and ADA-compliant
curb ramps on each corner.

Table 8: Participatory Budgeting Funded Projects, King City Packet Pg. 138 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 18
School Location Project Description
Jack Franscioni Intersection of Orchard
Lane and Gabilan Drive
Conduct a roundabout study. Station a second
crossing guard at the intersection. Install
ADA-compliant curb ramps on the northeast,
northwest, and southwest corners, install stop
bars and flashing stop signs on all legs, and
install high-visibility crosswalk on the south leg
of the intersection.

Pinnacles High Intersection of Main
Street and Gabilan Drive
Conduct a roundabout study. Dedicate two
parking spaces on Main Street to a white curb
loading zone for school drop-off and pick-up.

Install curb extensions on the southeast and
southwest corners of the intersection, and
station crossing guards at the intersection,
ideally one at the east and one at the west
crosswalk.

Soledad High Intersection of Benito
and Gabilan Street
Install stop bars on the south leg of the
intersection, install ADA-compliant curb ramps
on the southwest corner, and install schoolcrossing pavement markings approaching the midblock crosswalk.

San Vincente
Elementary
Orchard Lane, Metz
Road
Install high-visibility crosswalks across side
streets at Aromas Place, Cadena Drive, and
Cambria Drive. Remove the current loading
zone on the north side of Metz Road between
Almond Acres and the midblock crosswalk, and
make this a red curb. Move the loading zone to
be west of the school driveway, and formalize
the dirt parking lot and stripe the parking
spaces.

Table 9: Participatory Budgeting Funded Projects, Soledad Packet Pg. 139 Attachment: Executive Summary of Salinas Valley Safe Routes to School Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan)

GONZALES
3 CHAPTER
Packet Pg. 140 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Existing Conditions 31
Gonzales
Existing Conditions
This chapter discusses the current conditions in Gonzales related to walking, bicycling, and transit use. These include citywide demographics and commute trends, land use and community destinations, collision data, bicycle and pedestrian facilities, transit options, and encouragement programs.

Demographics
Gonzales was home to an estimated 8,466 people in
2024.1 The city has a large youth population, with 30% of residents being under the age of 18.2 Seniors represent a smaller proportion, with 7% of residents being over the age of 65.2 The median age is 28.8, which is lower than the median age for Monterey County as a whole.

Among Gonzales residents, 16% identify as white, 91% as Hispanic or Latino, and 1% as Asian. Thirty-one percent did not finish high school, and 22% completed high
school as their highest level of education. Forty percent of residents have at least some higher education, and 6% have either a bachelor’s or a graduate degree.2
Active transportation investments are especially important in underserved communities, which tend to have higher
rates of walking and bicycling.

According to the California Department of Education, 84% of students in Gonzales public schools qualify for free and reduced meals, which is a sign of low-income status.3 Correspondingly, 57% of households have incomes of less than $50,000 per year, and 12% of families with children under the age of 18 have incomes below the poverty level.4 1 State of California Department of Finance, 2022. E4 Population Estimates for Cities, Counties, and the State, 2021-2024 with 2020 Census Benchmark. dof.ca.gov/forecasting/demographics/estimates/e-4-population-estimates-for-cities-counties-and-the-state-2021-2024-with-2020- census-benchmark.
2 Census American Community Survey 2017–2021 Selected Characteristics of US Populations, Table SO601. 3 State of California Department of Education, 2022. Free or Reduces-Price Meal (Student Poverty) Data. www.cde.ca.gov/ds/ad/filessp.asp. 4 Census American Community Survey 2017–2021 Selected Economic Characteristics, Table DP03. 30%
63%
7%
age 18-65
under the age of 18
over the age of 65
Figure 1. Age distribution of
Gonzales residents, 2022
Source: Census American
Community Survey 2017–2021
Packet Pg. 141 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 32
Commute Trends
An estimated 3,605 Gonzales residents over the age of 16 are employed, and 81% of those drive to work alone. Gonzales has a higher rate of driving to work alone than any other city in Salinas Valley and a higher rate than Monterey County as a whole.5
Overall, 5% of Gonzales residents carpool to work, 2% walk 1% bike, and less than 1% take public transit. About 1% of residents work from home.

Although some Gonzales commuters travel outside Monterey County for work, the majority (93%) stay within the county for their work trips. The average commute time to places of employment for Gonzales residents is 24 minutes.

Twenty percent of commuters travel more than 30 minutes daily, and 8% travel 45 minutes or more.5
Although commute trips offer the best available data on travel modes, they represent only a percentage of trips. Comprehensive data sets on the percentage of Gonzales residents walking or bicycling for other daily trips are not available.
5 Census American Community Survey 2017–2021 Commuting Characteristics by Sex, Table SO801.

Figure 2. Work Commute Travel Modes in Gonzales

1.2%

8.7%

0.7%

9.2%

81.5%
Worked from Home
Taxicab, Motorcycle, or Other Means
Bicycle
Walked
Public Transportation
Carpooled
Drove Alone

2.0%

1.3%
Source: U.S. Census Bureau
Packet Pg. 142 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Existing Conditions 33
Land Use and Major Destinations
Gonzales is bisected by Highway 101, with the three schools, downtown, and the majority of residential housing located west of the highway. A commercial area and several residential neighborhoods are located east of the highway, and 5th Street is the only route between the two sides. The three public schools in Gonzales are situated near one another on 5th Street and Elko Street. Commercial areas are also located along 5th Street east of Highway 101 and in the historic downtown on Alta Street. Other key destinations include Central Park, Centennial Park, the Gonzales Library, and medical centers.

Existing Bicycle Network
There are currently two types of bicycle facilities in Gonzales: Class II bicycle lanes and Class IIB buffered bike lanes. Other streets have been designated as regional bike routes.

See below for definitions of each type of facility.

Class II bicycle lanes are located on portions of Alta Street, portions of 5th Street, Harold Parkway, and Elko Street, although the bikes lanes near La Gloria Elementary are currently used for parent parking. The city of Gonzales upgraded the bike lanes on 5th Street between Elko Street and Rincon Road to class IV separated bike lanes as part of the temporary pilot project; following the pilot, the design was converted to class IIB buffered bike lanes.

Class II bike lane in front of La Gloria Elementary in Gonzales Packet Pg. 143 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 34
Class II Bicycle Lane
These are on-street facilities that use paint
striping and stencils to designate spaces for
bicycle travel. Bike lanes delineate the rightsof-way assigned to bicyclists and motorists and encourage more predictable movements by
each. A more important reason for constructing
bike lanes is to accommodate bicyclists in
corridors with insufficient room for side-by-side
sharing of streets with motorists. This can be
done by reducing the number of lanes, reducing
lane width, or prohibiting or reconfiguring
parking to delineate bike lanes. In addition,
other things can be done on streets with bike
lanes to improve the situation for cyclists
in ways not possible on all streets (e.g.,
improvements to the surface, augmented
sweeping programs, special signal facilities).

In general, pavement markings alone do not
measurably enhance cycling conditions.

Class IIB Buffered Bicycle Lane
Buffered bike lanes are conventional bike
lanes with designated buffer spaces separating
them from adjacent motor vehicle travel lanes
or parking lanes. Buffered bike lanes create a
greater distance between cyclists and motor
vehicle traffic and provide space for cyclists to
pass each other without encroaching on the
vehicle lane. Buffered bike lanes appeal to a
wider cross-section of users and skill levels than
conventional bike lanes.

Regional Bike Routes
The Transportation Agency for Monterey County
(TAMC) developed a Pedestrian and Bicyclist
Wayfinding Plan for Monterey County in 2016,
in which it identified a network of regional
bicycle routes. These routes connect key
destinations within the county and currently
have either class I multi-use paths, class II bike
lanes, or class III bike routes, or are planned to
have bicycle facilities in the future.

Class IIB Buffered Bicycle Lane Class II Bicycle Lane
Source Silicon Valley Bicycle Coalition
Packet Pg. 144 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Existing Conditions 35
Figure 3. Bicycle Facilities in Gonzales
Packet Pg. 145 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 36
Existing Pedestrian Network
The City of Gonzales has good sidewalk coverage, with sidewalk present on nearly all roadways. There are several raised intersections downtown, which slow traffic speeds and make intersections easier for pedestrians to navigate.

Gonzales also has curb ramps at most intersections. Curb ramps provide access between the sidewalk and the street for people with disabilities, children on bicycles, and people pushing strollers. Under the Americans with Disabilities Act (ADA), upgraded curb ramps must include warnings that are detectable by people with vision impairments. As the City repaves streets and installs roadway improvements, upgraded curb ramps are installed at intersections to comply with ADA standards.

Transit Network
Gonzales Unified School District provides busing for special education students and students who live on the outskirts of the city, including high school students from Chualar. Bus transportation is also available for students living in the northwestern portion of the city.

In addition to the transportation offered by school districts, Monterey-Salinas Transit (MST) offers bus transportation to the public, including some students traveling to school in Gonzales. Youths aged 18 and younger receive discounted fares for all trips. In summer 2023, bus routes included service between Chualar and 5th Street in Gonzales, providing access to Gonzales High School.

Packet Pg. 146 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Existing Conditions 37
Active Transportation Safety
Bicycle- and pedestrian-related collision data can be used to identify highlevel collision trends and locations with high rates of bicycle and pedestrian collisions. This analysis uses data from UC Berkeley’s Transportation Injury Mapping System (TIMS) for the ten-year period from 1/1/2012 to 12/31/2021.

It is important to note that the TIMS data include reported injury collisions only.

Many bicycle and pedestrian collisions are not reported and therefore are not represented in this analysis.

Gonzales has significant rates of collisions involving both bicyclists and pedestrians, with 20 pedestrian collisions and nine bicyclist collisions between 2012 and 2021.61In both 2017 and 2018, Gonzales was ranked among the top ten cities of similar size for pedestrian collisions involving youths under 15 and bicycle collisions involving youths under 15 by the California Office of Traffic Safety.7
Gonzales also ranked in the top ten for pedestrian collisions in both 2017 and 2020, again in comparison to cities of a similar size.27 People walking and bicycling in Gonzales are disproportionately involved in collisions relative to people who are driving. Data from TIMS shows that between 2012 and 2021, 21% of injury collisions in Gonzales involved pedestrians and 9% involved bicyclists.36 This is disproportionate to walking and biking rates in the city, where 3% of work trips are made by walking or bicycling.48
Bicycle Safety
Over the ten-year study period, there were nine bicycle-related injury collisions in Gonzales, with an average of less than one per year. The number of collisions increased to three in 2014, but this trend did not continue in subsequent years.

There were no fatal bicycle collisions within the ten-year period. No collisions caused severe injuries, four resulted in an “other visible injury,” and five resulted in a “complaint of pain.”
6 Safe Transportation Research and Education Center, University of California, Berkeley, 2023. 7 California Office of Traffic Safety. 2021. Gonzales 2021. www.ots.ca.gov/media-and-research/crash-rankings-results. 8 Census American Community Survey 2015–2019 Commuting Characteristics by Sex, Table SO801. data.census.gov Packet Pg. 147 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 38
Bicycle Collision Trends
Bicycle-related collision locations are shown in
Figure 6. Key takeaways from the analysis include
the following:
• 9% of injury collisions in Gonzales
involved people on bikes. Although bicycle
trips make up only a small percentage
of the trips in Gonzales, cyclists are
disproportionally involved in injury collisions.
• Nearly all bicycle-related collisions
(78%) took place on 5th Street, a major
roadway. 5th Street is the city’s only route
across Highway 101, and all three schools in
Gonzales are located on or near 5th Street,
making it a popular route for students who
are walking and biking.
• Youths aged 19 or younger were involved
in 67% of bicycle collisions. Youths aged
14 or younger were the top age group for
bicycle collisions and were involved in 44%
of collisions. Male cyclists were slightly more
likely to be in collisions and made up 56% of
crash victims.
• The two most common bicycle collision
factors, according to the reporting law
enforcement officer, were driver’s failure to
yield (22%), and failure to obey traffic signals
and signs (22%).

Person in wheelchair using the protected
bike lanes during the Gonzales pilot project
on 5th St
Packet Pg. 148 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Existing Conditions 39
Figure 4.

Annual Bicycle Collisions in
Gonzales, California, 2012–2021
Source: UC Berkeley Transportation
Injury Mapping System (TIMS)
Figure 5.

Severity of Bicycle Collisions in
Gonzales, California, 2012–2021
Source: UC Berkeley Transportation Injury
Mapping System (TIMS)
56% 44%
Injury (other visible)
Injury (complaint of pain)
Students walking and biking across the 5th Street bridge in Gonzales 2012 2013
0 2
1 3
2014 2015 2016 2017 2018 2019 2020 2021
Packet Pg. 149 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Figure 6. Map of Gonzales Bicycle Collisions, 2012–2021 Packet Pg. 150 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Existing Conditions 41
Pedestrian Safety
Over the ten-year study period, there were 20 pedestrian collisions in Gonzales, with an average of 2 per year. This number increased to 4 in 2021, and monitoring will be necessary to see whether that trend continues. There was one fatal pedestrian collision in the ten-year period. One collision caused severe injuries, eight resulted in some “other visible injury,” and ten resulted in a “complaint of pain.” Figure 7. Annual Pedestrian Collisions
Source: UC Berkeley Transportation Injury Mapping System (TIMS) Bollards and raised crosswalks at the intersection of 4th Street and Belden Street in downtown Gonzales
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0 2
1 3
4 Packet Pg. 151 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 42
Pedestrian Collision Trends
Pedestrian collision locations are shown in Figure 9. Key takeaways of the analysis include the following:
• 21% of injury collisions in Gonzales involved people walking.

Although walking trips make up only a small percentage of the trips in Gonzales, pedestrians are disproportionally involved in injury collisions. • 70% of pedestrian collisions involve youths aged 19 or younger.

People in this age group were more than five times as likely to be involved in a pedestrian collision as people in their 20s. Fifty-five percent of collisions involved youths under 14.
• 5th Street was the location with the most pedestrian collisions, with 50% of all such collisions. 5th Street is the city’s only route across Highway 101, and all three schools in Gonzales are located on or near 5th Street, making it a popular route for students who are walking and biking. • The most common type of violation, according to the reporting law enforcement officer, was drivers’ failure to yield to pedestrians at marked or unmarked crosswalks, which accounted for 45% of all collisions. The second most common violations were speeding and unsafe turning, which each accounted for 10% of collisions. The type of violation was not listed in 30% of collisions.
• Drivers were at fault in 55% of pedestrian collisions. Pedestrians were at fault in 5%, and fault was unknown or not listed in the remaining 40%.

Figure 8. Severity of Pedestrian Collisions in Gonzales, California, 2012-2021 Source: UC Berkeley Transportation Injury Mapping System (TIMS) 5%
5%
50%
40%
Injury (other visible)
Injury (complaint of pain
Fatal
Severe Injury
Packet Pg. 152 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Figure 9. Map of Gonzales Pedestrian Collisions, 2012–2021 Packet Pg. 153 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 44
Existing Programs
A variety of program offerings provide active transportation education and encouragement to Gonzales residents. Some programs are focused on school-aged youths, but there are also programs offering safety information, encouragement, and events for the general public.

Active Transportation Support Program
The Transportation Agency for Monterey County (TAMC) provides free racks for bicycle and skateboard parking, bike lockers, and bicycle repair stands to businesses, schools, and other organizations throughout Monterey County. The goal of the program is to increase the amount of secure bicycle parking and ensure that it is distributed equitably throughout the county. Interested parties can apply for funding to purchase a rack at any time here:
tamcmonterey.org/active-transportation-support-program.

Blue Zones Project Monterey County
Blue Zones Project is a national organization that works with communities to encourage changes that lead to healthier options for residents. Blue Zones works with governments, employers, restaurants, and school sites to encourage healthy eating, exercise, and community building. Blue Zones was launched in Monterey County in 2019 and works with schools in Gonzales to encourage healthy habits. Learn more here: montereycounty.bluezonesproject.com.

Modo Bike Safe program
Packet Pg. 154 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Existing Conditions 45
Go 831
Go831 is a free transportation-demand management program led by the Transportation Agency for Monterey County. The program is offered countywide and provides resources and incentives for commute trips made by biking, walking, carpooling, vanpooling, or public transit. Go831 also provides resources for employers who want to start incentive programs to reduce drivealone commute trips. Learn more here: go831.org.

Measure X Safe Routes to Schools Program
Local sales tax Measure X, which was approved by Monterey County voters in 2016, includes $20 million for Safe Routes to Schools projects and programs through 2040. The Transportation Agency for Monterey County has developed a comprehensive Safe Routes to Schools program that offers tools, programming, and resources to schools, guardians, and communities aimed at improving safety and traffic around schools. Learn more here: saferoutesmonterey.org.

Modo Youth Programs
The Bike Safe and Walk Safe programs, led by Ecology Action, provide onthe-ground training in safe walking and bicycling to second- and fifth-grade students, with the goal of empowering students and parents to walk and bike and to reduce collisions. Learn more here: letsmodo.org/youth-safety.

Modo Walk Safe program Packet Pg. 155 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 46
Outreach
Gonzales Outreach Summary
Parent Outreach
• 6 presentations at virtual or in-person
parent meetings
• 45 responses to online parent survey
• 0 responses to draft
recommendations survey
• 2 presentations to the Gonzales
Youth Council
• 3 presentations to the Gonzales
City Council
• 3000+ parents estimated reached through
ParentSquare or social media
Pilot Projects
• 1 pilot project on 5th Street
• 170 responses to the 5th Street pilot
project survey
Steering Committee
• 10 Steering Committee members
• 8 Steering Committee meetings
• 492 community votes during participatory
budgeting process
• 2 projects approved for funding
Public Outreach
Public input, which was the foundation of the Safe Routes to Schools Plan, began in the fall of 2022 in Gonzales. Outreach included presentations at virtual and in-person parent meetings, digital parent surveys, and tabling at community events. Walking audits were held at each school site to review the current infrastructure conditions and discuss safety issues with school staff.

After the draft recommendations were developed, the planning team hosted one temporary demonstration project in each city to test them and get feedback from the community. Finally, Steering Committees were developed in each city to lead a participatory budgeting process.

Gonzales is home to many Spanish-speakers, and enabling equitable participation was an important part of the outreach process. All materials and surveys were developed in English and Spanish, and translation was available during the walking audits. Parent presentations were given primarily in Spanish, and Steering Committee meetings were conducted in Spanish with English translation available.

Packet Pg. 156 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Outreach 47
Walking Audits
Walking audits were held at each of the three schools
in Gonzales in fall 2022. Audits were held during school arrival or dismissal to observe traffic and infrastructure conditions around the school and discuss key safety
issues with school staff. School principals, community
liaisons, parents, and crossing guards shared information on typical traffic patterns and safety issues for people walking and biking. These meetings were held outside, and COVID-19 protocols were maintained to ensure participants’ safety.

Parent Meetings
At the beginning of the planning process, the team contacted school staff to request time on the agendas of pre-scheduled virtual and in-person parent meetings, such as coffee klatches, site councils, and the English Learner Advisory Committee (ELAC). During their presentations, planning team members shared information about the planning process and asked parents and school staff for input on safety issues with biking and walking near the school. After the draft recommendations were developed, another round of presentations was conducted to get feedback on them. In total, three presentations were given at the three Gonzales schools.

Parent and Student Surveys
An initial survey was shared with parents through school communication channels, the project website, and on social media. This received 45 responses. The survey asked about how students typically traveled to school before COVID-19, top concerns about students walking or biking to school, and barriers to traveling to school safely.

After the draft recommendation list was developed, recommendations maps in English and Spanish were shared with parents along with a short survey asking for feedback.

No responses were received with feedback on the draft recommendations.

Planning team and school
staff at the Gonzales High
School audit
Packet Pg. 157 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 48
Gonzales Youth Council
The Gonzales Youth Council (GYC) is a group of student residents who represent the youth population at both city council and school board meetings.

They participate in local decision making and suggest policy improvements for the community, city government, and school. The planning team gave two presentations to GYC members to learn about safety problems they had experienced traveling to school and to hear their ideas for future projects.

Staff also consulted GYC members before selecting a location for the pilot project.

Pilot Projects
After the draft recommendations were
developed, the planning team selected one
location per city for a temporary pilot project.

These projects were designed to test the
recommendations and designs in practice
and get feedback from the community on
whether they should be made permanent.

See below for more information on the
Gonzales pilot project and community
survey data.

Presentation to the Gonzales Youth Council
Banner promoting the Gonzales Pilot Project
Packet Pg. 158 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Outreach 49
Steering Committees
Safe Routes to School Steering Committees
were formed in each of the four cities. The
Committees were made up of community
representatives, including students, parents,
school staff, advocates, and residents. These
groups met monthly for nine months and took
an active leadership role in engaging the
community and developing projects.

Each Steering Committee led a participatory
budgeting process, a process in which
community members decide democratically
how to spend part of a public budget. TAMC
allocated $250,000 per city to implement
projects from the Safe Routes to Schools Plan,
and Steering Committees developed a process
for allowing community members to vote on
which projects should be funded.

The Gonzales Committee developed
project proposals based on the project
recommendations from the Safe Routes to
Schools Plan and designed a process for
residents to vote on which projects were the
most important to them. The projects receiving
the most votes were recommended for funding.

Steering Committee members presented the
election results to the Gonzales City Council in
June 2024 and received approval that August.

Projects funded through the participatory
budgeting process will begin implementation as
soon 2025. The City of Gonzales will construct
as many recommendations as is feasible given
current construction costs. The list of projects
recommended for funding in Gonzales can be
found in Chapter 3D.

Many Committee members came
from communities that are traditionally
underrepresented in the political process,
and whose members face obstacles to
participating or who feel left out. By serving on
Safe Routes to Schools Steering Committees,
members gained experience in leadership and
participation in local government. Steering
Committees also improved connections between
the planning team and each community and
increased public participation in the planning
process. Steering Committee members were
compensated for their time to recognize the
value of their work and allow for equitable
participation. Dinner was provided at each
meeting, and childcare was provided as needed.

Gonzales Steering Committee members
Packet Pg. 159 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 50
5th Street Pilot Project
Survey Results
Highlights of the community survey data for the 5th Street pilot project are provided below. The full survey data can be found in the Appendix.

The temporary installation on 5th Street was located between Elko Street and Rincon Road, a section that connects nearby residents with all three schools in Gonzales. 5th Street was selected for the pilot project because it connected the three schools and was the corridor with the most bicycle and pedestrian collisions over the last 10 years. 5th Street was also identified as a priority by the Gonzales Youth Council.

At the time of the installation, there were class II bicycle facilities along this section of 5th Street. The speed limit was 25 mph, but public comments indicated that drivers frequently travelled faster. 5th Street is the only route across Highway 101 to the neighborhoods east of the highway, and it is frequently congested in the afternoons. The pilot project removed on-street parking on 5th Street in order to install separated bike lanes, and added high-visibility crosswalks to the intersections of Elko Street, Gabilan Court, and Rincon Road.

The 5th Street pilot project was in place for one month. The planning team received 179 community survey responses. The following methods were used to promote the project and collect survey responses:
• Distribution of fliers and a survey link to parents, through all Gonzales schools
• Distribution of fliers and a survey link through city utility bill mailers • Door-to-door distribution of fliers with the survey link, to neighbors along 5th Street
• Mass mailings to 2,700 households in the neighborhoods around the pilot project
• Social media posts
• Banners and pre-stamped surveys placed along 5th Street • Presentation to City Council before the pilot was installed Packet Pg. 160 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Outreach 51
Survey Results
• Thirty-two percent of survey respondents
walked on 5th Street during the pilot
project, and 64% drove down 5th Street.

Four percent of respondents bicycled
through the pilot.
• Seventy-one percent of respondents
reported having a positive experience with
the high-visibility crosswalks, and 56% had
a positive experience with the separated
bike lanes.
• Nearly 30% of respondents said that they
walked or biked more because of the
pilot project.
• Half of respondents indicated that they
would like to see the temporary changes
made permanent. Twenty percent were
undecided, and 29% said they did not want
to see the changes become permanent.
• Sixty-eight percent said that they would
either definitely or probably use the new
facility if it became permanent.

Figure 10. 5th Street Pilot Project Survey Data
Figure 11. 5th Street Pilot Project Survey Data
Would you like to see the temporary improvements made permanent? How likely would you be to walk or bike through this area if the changes became permanent?
51%
11%
9%
29% Yes
Maybe - with some changes
Undecided
No
45%
23%
20%
12%
Definitely
Likely
Not likely
Not at all likely
Packet Pg. 161 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 52
Next Steps
During the first few weeks of the pilot, members of the public expressed concerns about emergency vehicle access on 5th Street. The barriers separating the bike lanes from the street prevented drivers from moving into the bike lane if an emergency vehicle needed to get through, and frequent traffic congestion on 5th Street created concerns that emergency vehicles would not be able to get through in an emergency. City staff returned to City Council with an update and a request for direction, and the City Council directed them to remove the barriers that separated the bicycle lanes from the motor vehicle lanes.

City staff returned to Council at the end of the pilot project and were directed to keep the high-visibility crosswalks and the new configuration of the bicycle lanes as a permanent project. Council also directed staff to enhance the bicycle lanes with dashed green lane treatments as a phase II project.

Separated bike lanes with planters on 5th Street during the Gonzales Pilot Project Packet Pg. 162 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 53
Recommendations
School Profiles
The school-level infrastructure recommendations listed in this chapter are the core of the Safe Routes to Schools Plan. They were designed to address the specific challenges at each school site to increase the safety of families walking and biking and encourage more active transportation trips to school. This chapter includes information on the current conditions at each school, observations from the walking audit, and the list of infrastructure recommendations. Schools are organized alphabetically. School-specific non-infrastructure recommendations are also listed under each school’s profile. Citywide non-infrastructure recommendations are listed at the end of the chapter.

A guide to the various types of infrastructure treatments mentioned in this chapter starts on page 56.

Safe Routes to Schools Corridors
Safe Routes to Schools corridors are streets that have been identified as key routes to Gonzales schools. These streets may be good candidates for corridorlevel improvements in the future, such as slowing traffic speeds, improving intersections and crossings, and creating a safe and comfortable environment for students to walk and bike to school.

Crosswalk on 5th Street during the Gonzales Pilot Project Packet Pg. 163 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Figure 12. Map of Gonzales Safe Routes to Schools Corridors Packet Pg. 164 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 55
Recommendation Process
The recommendations in this plan were developed in response to public input on the barriers to getting to each school site safely. Public comments from parent surveys, parent meetings, and walking audits were reviewed, and where feasible, recommendations were developed to address each issue.

This process included evaluation of the existing conditions around each school.

After the draft recommendations were developed, recommendation maps in English and Spanish were shared with each school site along with a short survey asking for feedback. Each school was also offered another round of bilingual parent presentations to share the draft recommendations and collect feedback from parents and school staff. The planning team then reviewed this feedback and adjusted the recommendations where feasible.

All recommendations are planning level and require further analysis before implementation. All recommendations for new marked traffic-control devices, including crosswalks, require further analysis and must meet the guidelines of the California Manual of Uniform Traffic Control Devices to be installed.

The planning team at the Fairview Middle School audit
Packet Pg. 165 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 56
Class I shared use paths are paved rights-ofway, completely separated from streets, which support multi-use recreation and transportation
opportunities for walkers, bicyclists, skaters, and
wheelchair users.

Class II bike lanes are on-street bicycle facilities
that use striping and stencils to designate spaces
for bicycle travel.

Class IV separated bikeways or cycle tracks
are bike lanes separated by a physical barrier,
such as parked cars, planters, or plastic posts
from the vehicle lane, providing separation and
safety for cyclists.

Curb extensions are additions to the sidewalk
installed at intersections or mid-block crosswalks
to shorten the crossing distance for people
walking and make them more visible to drivers.

Decorative crosswalks are crosswalks that
include a colored, textured, or artistic mural
element. They are used primarily for aesthetic
enhancement, but they can also make people who
are crossing more visible to drivers.

Source Amelia Conlen
Source pedbikeimages.org
Adam Coppola
Source pedbikeimages.org
Dan Burden
Source pedbikeimages.org
Brandon Whyte
Guide to Bicycle & Pedestrian Infrastructure Recommendations Source pedbikeimages.org
Laura Sandt
Packet Pg. 166 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 57
High-visibility crosswalks, or “ladder style”
crosswalks, are more visible to drivers than
crosswalks consisting just of two lines (standard
striped crosswalk).

Neighborhood traffic circles are small
roundabouts installed in neighborhood streets
to slow traffic and create a safer and more
comfortable environment for people walking
and biking.

Raised crosswalks are marked crosswalk on
higher sections of pavement. These are used to
encourage drivers to slow down and make people
walking more visible to drivers.

Rectangular rapid flashing beacons (RRFBs)
are used at uncontrolled intersections or midblock crosswalks to alert drivers to people who are waiting to cross the street.

Roundabouts are circular intersections where
drivers travel counterclockwise around a center
island. They have been shown to reduce crashes
and improve safety for people walking.

Source pedbikeimages.org
Dan Burden
Source City of Capitola
Source pedbikeimgages.org
Toole Design Group
Source pedbikeimages.org
Toole Design Group
Source Amelia Conlen
Packet Pg. 167 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 58
Citywide Bicycle and Pedestrian
Network Recommendations
Figure 13 shows existing bicycle and pedestrian facilities together with recommendations for bicycle and pedestrian corridor improvements throughout Gonzales. A description of each facility type can be found above.

School buses at La Gloria Elementary
Packet Pg. 168 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales
High School
Fairview
Middle
School
La Gloria
Elementary
Maxar
Gonzales Citywide Bicycle & Pedestrian Network Recommendations Class II Bike Lane
Existing Bikeways Recommended Bikeways
Class I Shared Use Path
Class II Bike Lane
Class IV Separated Bikeway
Parks/Open Space
City Limits
Schools
¯
0 0.25 0.5 Miles
Figure 13. Map of Gonzales Safe Routes to Schools Corridors Packet Pg. 169 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 60
Fairview Middle
Fairview Middle School is located in central
Gonzales, adjacent to Gonzales High School and
La Gloria Elementary, and draws students from the
entire city (see Figure 15).

Parent Survey
Fairview Middle School parents were asked to
complete a bilingual survey about their attitudes
toward walking and biking to school in spring and
fall of 2022, and seven surveys were received. The
full survey report is in the Appendix.

The survey asked parents about the most important
factors in their decision making on whether to allow
their children to walk or bike to school. The top
responses are listed in Figure 14.

GRADE LEVELS
6-8

NUMBER OF STUDENTS
497

STUDENTS QUALIFYING

FOR FREE OR

REDUCED MEALS

88.7%

STUDENTS RESIDING
WITHIN 1 MILE

OF SCHOOL
84%

STUDENTS USING ACTIVE

TRANSPORTATION
(based on 7 survey
responses)
28%
Figure 14. Parents’ Concerns about
Children Walking or Biking to School
(respondents could select more than one)

DISTANCE

AMOUNT OF

TRAFFIC ALONG
ROUTE

SPEED OF TRAFFIC

ALONG ROUTE

SAFETY OF

INTERSECTIONS

AND CROSSINGS

CONVENIENCE OF

DRIVING

SIDEWALKS OR

PATHWAYS

WEATHER OR

CLIMATE
Packet Pg. 170 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales
: Recommendations 61
Figure 15. Map of Fairview Middle School Area
1st St
10th St
Alta St
Alta St
Elko St
Old Stage Rd
Alta St
Gonzales River Rd
5th St Herold Pkwy
Alta St/Old US Hwy 101
Sources: Esri, HERE, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community Fairview Middle Salinas Valley Safe Routes to School Plan 0 0.5 1 0.25
Miles

0.5 ≥ 1 mile:152 students

0.25 ≥ 0.5 mile:189 students
≥ 1/4 mile:51 students
Public LibrariesFairview MiddleStudents
Existing Bike Infrastructure
Bike LaneCity Limits
≤ 1 mile:73 students
Packet Pg. 171 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 62
Current Infrastructure Conditions
Motorist Conditions
• Fairview Middle School has a small dropoff loop and a parking lot off Elko Street.

Parking spaces in the lot are reserved
for staff.
• At the time of the audit, drop-off took place
mostly on the street (Elko Street), and
minimally in the drop-off loop itself.
• School bus drop-off takes place on one
side of the drop-off loop designated
specifically for buses.
• There is traffic congestion on Elko Street
before and after school, especially closer to
La Gloria Elementary.

Pedestrian Conditions
• There are complete sidewalks on both
sides of Elko Street.
• The intersection of Elko Street and
4th Street is an all-way stop with
standard striped crosswalks and updated
curb ramps.
• At the time of the audit, the intersection of
Elko Street and 5th Street was an all-way
stop with standard striped crosswalks.

There is an overhead flashing red beacon
in place, and an in-street pedestrian
crossing sign.
• There were no crossing guards at any of
the nearby crossings at the time of
the audit.

Pedestrians crossing Elko St in front of Fairview Middle School Packet Pg. 172 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales
: Recommendations 63
Class II bike lane on Elko Street
Bicycling Conditions • There are class II bike lanes on both sides of Elko Street, though drivers were
observed parking in the bike lane across
from La Gloria Elementary.
• At the time of the audit, there were also
class II bike lanes on 5th Street between
Alta Street and Fanoe Road.
• There are no bicycle facilities on other
nearby neighborhood streets.

Recommended Infrastructure
Improvements around Fairview
Middle School
The following table lists recommendations for
Fairview Middle School, and the map below
shows their locations in relation to the school.

Packet Pg. 173 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 64
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZF01 Elko
Street 5th Street Fairview
Drive
Sidewalk on Elko
Street between
Fairview and La
Gloria was very
crowded before and
after school. Some
students walked in
the street.

Widen the sidewalk on
east side of Elko Street
to create a shared-use
path for pedestrians
and bicyclists. Include
benches and other
pedestrian amenities.

ZF02 Belden
Street 5th Street
Bicycle/pedestrian
collision at this
intersection.

Install high-visibility
crosswalk on the north
side of intersection.

ZF03 Belden
Street 5th Street
Bicycle/pedestrian
collision at this
intersection.

Conduct sight-distance
analysis to identify
issues that may have
contributed to collision.

ZF04 Center
Street 5th Street Key pedestrian route
to school.

Install curb extensions
on all corners of
intersection.

ZF05 Center
Street 5th Street Key pedestrian route
to school.

Install high-visibility
crosswalks on all legs
of intersection.

ZF06 Day
Street 4th Street Key pedestrian route
to school.

Install high-visibility
crosswalks on all legs
of intersection.

ZF07 Day
Street 4th Street Key pedestrian route
to school.

Install in-street
pedestrian crossing
sign. Consider artwork
in the intersection.

ZF08 Day
Street 5th Street Key pedestrian route
to school.

Install curb extensions
on all corners of
intersection.

Table 1: Recommendation for Fairview Middle School
Packet Pg. 174 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 65
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZF09 Day
Street 5th Street Key pedestrian route
to school.

Install high-visibility
markings on all legs of
the intersection.

ZF10 Day
Street 5th Street Key pedestrian route
to school.

Install in-street
pedestrian crossing
sign. Consider artwork
in the intersection.

ZF11 Elko
Street 4th Street
Angled parking was
not well-used during
pick-up and dropoff. Angled parking
located next to a
bike lane can create
conflicts between
cars and bikes.

Consider converting
angled parking to
parallel parking, and
convert extra space to
multi-use path.

ZF12 Elko
Street 4th Street
Main school
crosswalk. High
volumes of
pedestrians and
vehicles before
and after school.

Traffic control would
help traffic to flow
smoothly.

Station crossing guard
at north crosswalk.

ZF13 Elko
Street 4th Street Main school
crosswalk.

Install high-visibility
crosswalks on all legs
of intersection.

ZF14 Elko
Street 5th Street
Key pedestrian route
to middle and high
school.

Install high-visibility
crosswalks on all legs
of intersection.

ZF15 Gabilan
Court 5th Street
Low pedestrian
visibility at side
streets.

Install high-visibility
crosswalk on south leg
of intersection.

Table 1: Recommendation for Fairview Middle School (continued) Packet Pg. 175 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 66
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZF16 Gabilan
Court 5th Street
Reports of drivers
not yielding to
pedestrians in the
crosswalk.

Upgrade existing RRFB
signal to flashing sign to
better alert vehicles of
pedestrians crossing.

ZF17 Gabilan
Court
Fairview
MS
Provides access to
future Community
Center.

Ensure that gate
remains open between
Middle School and
Gabilan Court to allow
student access to 5th
Street.

ZF18 Rincon
Road 5th Street
Key pedestrian
route to middle and
high school. Current
stop-bar location
encourages drivers
to stop in crosswalk.

Install curb extensions
to move crosswalk
closer to center line on
5th Street.

ZF19 Rincon
Road 5th Street
Key pedestrian route
to middle and high
school.

Install high-visibility
crosswalk on north
and south leg of
intersection.

ZF20 Rincon
Road 5th Street
Key pedestrian
route to middle and
high school. Current
stop-bar location
encourages drivers
to stop in crosswalk.

Relocate stop bar
to prevent cars from
encroaching on
crosswalk.

ZF21
School
Parking
Lot
4th Street
Conflicts between
drivers entering
parking lot and
pedestrians crossing
Station a crossing
guard at the south
parking lot crosswalk,
as cars entering the lot
turn right across this
crosswalk to reach staff
parking.

Table 1: Recommendation for Fairview Middle School (continued) Packet Pg. 176 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 67
Table 1: Recommendation for Fairview Middle School (continued) ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZF22
School
Parking
Lot
4th Street
Conflicts between
drivers entering
parking lot and
pedestrians
crossing.

Install raised crosswalk
at south parking lot
crosswalk.

ZF23
School
Parking
Lot Exit
Elko
Street
Parents entering
through school loop
exit. Left turns out of
driveway block traffic
in loop.

Install “Do not enter”
signage at school loop
exit. Consider striping
at exit to separate right
and left turn lanes
ZF24
School
Parking
Lot
Elko
Street
Parents parking at
beginning of loop to
drop off.

Ask parent or staff
volunteers to help direct
traffic in the loop during
drop-off and pick-up so
drivers know to pull to
the front of the loop.

ZF25
School
Parking
Lot
Elko
Street
Conflicts between
drivers entering
parking lot and
pedestrians
crossing.

Consider an additional
driveway entrance into
the staff lot to reduce
conflicts with students
in the parking lot.

ZX03 Citywide
Need for improved
lighting at
crosswalks.

Install pedestrian
lighting at marked
crosswalks, with a focus
on neighborhoods west
of Hwy 101.

Day
Street 3rd Street 10th
Street No bicycle facilities. Install bike lanes.

Packet Pg. 177 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Intersection Recommendations
High Visibility Crosswalk
Rectangular Rapid Flashing
Beacon
Gonzales High
Fairview Middle
La Gloria Elementary
Consider
intersection
artwork
Consider intersection
Artwork. Install
decorative crosswalks
Consider conversion of
angled parking to parallel
parking. Add a crossing
guard. Install decorative
crosswalks
Upgrade existing RRFB
signal to flashing sign
to better alert vehicles
of pedestrians crossing
Keep gate open for
student access
Add a crossing
guard. Install
raised crosswalk
Create left/right turn
lanes at lot exit
Consider
additional staff
lot entrance
Install decorative
crosswalks
Install
decorative
crosswalks
Install or update
bike parking
Maxar, Microsoft
Fairview Middle- Safe Routes to Schools Recommendations Existing Bikeways
Class II Bike Lane
Recommended Bikeways
Class I Shared Use Path
Class II Bike Lane
Class IV Separated Bikeway
School
Library
Parks/Open Space
City Limits
Curb Extension
¯
0 0.05 0.1 Miles
Figure 16. Fairview Middle Recommendations
Packet Pg. 178 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 69
Gonzales High
Gonzales High School is located in central
Gonzales, adjacent to Fairview Middle School and
La Gloria Elementary, and draws students from the
entire city (see Figure 18).

Parent Survey
Gonzales High School parents were asked to
complete a bilingual survey about their attitudes
toward walking and biking to school in spring and
fall of 2022, and 16 surveys were received back.

The full survey report is in the Appendix.

The survey asked parents to identify the most
important factors in their decision making on
whether to allow their children to walk or bike to
school. The top responses are listed in Figure 17.

GRADE LEVELS
9-12

NUMBER OF STUDENTS
869

STUDENTS QUALIFYING

FOR FREE OR

REDUCED MEALS

85.7%

STUDENTS RESIDING
WITHIN 1 MILE

OF SCHOOL
76%

STUDENTS USING ACTIVE

TRANSPORTATION
(based on 16 survey
responses)
25%
Figure 17. Parents’ Concerns about
Children Walking or Biking to School
(respondents could select more than one)

SAFETY OF

INTERSECTIONS

AND CROSSINGS

AMOUNT OF

TRAFFIC ALONG
ROUTE

SIDEWALKS OR

PATHWAYS

SPEED OF

TRAFFIC ALONG
ROUTE
TIME

CROSSING GUARDS
Packet Pg. 179 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 70 Figure 18. Map of Gonzales High School Area 1st St
10th St
Alta St
Alta St
Elko St
Old Stage Rd
Alta St
Gonzales River Rd
5th St Herold Pkwy
Alta St/Old US Hwy 101
Sources: Esri, HERE, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community Gonzales High Salinas Valley Safe Routes to School Plan 0 0.5 1 0.25
Miles

0.5 ≥ 1 mile:207 students

0.25 ≥ 0.5 mile:347 students
≥ 1/4 mile:89 students
Public LibrariesGonzales HighStudents
Existing Bike Infrastructure
Bike LaneCity Limits
≤ 1 mile:203 students
Packet Pg. 180 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 71
Current Infrastructure Conditions
Motorist Conditions
• Gonzales High School has a small drop-off loop and a parking lot off Elko Street and 7th Street. Parking spaces in the lot were reserved for staff, visitors, and students.
• At the time of the audit, drop-off took place mostly on the back side of campus along Elko Street and segments of 7th Street. Some drop-offs also took take place in the drop-off loop.
• School bus drop-off takes place in the central driveway through campus, which is reserved for buses.
• There is some traffic congestion on Elko Street, 7th Street, and 5th Street before and after school.

Pedestrian Conditions
• There are complete sidewalks on both sides of Elko Street and 7th Street. • The intersection of Elko Street and 7th Street is an all-way stop with standard striped yellow crosswalks.
• The intersection of Elko Street and 5th Street is an all-way stop, has a flashing red beacon, and had standard striped yellow crosswalks at the time of the audit.
• There were no crossing guards at any of the nearby crossings at the time of the audit.

High visibility crosswalk with RRFB on 5th Street
Packet Pg. 181 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 72
Bicycling Conditions
• At the time of the audit, there were class II bike lanes on 5th Street between Alta Street and Fanoe Road.
• There are no bike lanes on 7th Street or Elko Street near the high school parking lot.
• There are no bicycle facilities on other neighborhood streets.

Recommended Infrastructure Improvements
around Gonzales High School
The following table lists recommendations for Fairview Middle School, and the map below shows their locations in relation to the school.

Packet Pg. 182 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 73
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZZ01 Center
Street
10th
Street 1st Street
No bicycle facilities.

Wide street
adjacent to Central
Park.

Study options to
combine bike lanes to
create multi-use path
on east side of the
street.

ZZ02 1st Street Alta Street Center
Street No bicycle facilities. Install bike lanes.

ZZ03 Alta
Street 1st Street 10th
Street
High traffic volumes
and speeds.

Install a protected bike
lane.

ZZ04 Elko
Street 1st Street 5th Street
Key pedestrian
route to all three
schools.

Install decorative
crosswalks at
intersections.

ZZ32 Trail Fairview
Drive 5th Street
Key route to all
three schools, no
off-street bicycle
facilities.

Study options to
develop shared-use
path adjacent to
slough.

ZZ22 Trail Centennial
Drive
Fairview
Drive
Key route to all
three schools, no
off-street bicycle
facilities.

Study options to
develop shared-use
path adjacent to
slough.

ZZ05 Trail 4th Street 6th Street
Key route to all
three schools, no
off-street bicycle
facilities.

Extend the proposed
Gonzales Slough Trail
to the high school.

ZZ06 5th Street Elko
Street Fanoe Rd
Key route to all
three schools,
higher traffic
volumes and
speeds.

Install separated
bikeway.

Table 2. Recommendations for Gonzales High School
Packet Pg. 183 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 74
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZZ07 5th Street Herold
Parkway
Missing curb ramps
make it harder
to use a stroller,
wheelchair, or bike
on the sidewalk.

Install curb extensions
on southwest and
northwest corners of
the intersection.

ZZ08 5th Street Herold
Parkway
Low pedestrian
visibility at
intersection.

Install high-visibility
crosswalks on the
west and south legs of
the intersection.

ZZ09 5th Street Hwy 101 S
Entrance
Key route to all
three schools,
history of collisions.

Upgrade existing
crosswalks to high
visibility, study quickbuild curb extensions,
and install signage.

ZZ10 5th Street Hwy 101 S
Entrance
Key route to all
three schools,
history of collisions
and traffic
congestion.

Study options to
install roundabout,
study quick-build curb
extensions, and install
signage.

ZZ12 5th Street
Hwy
101 N
Entrance
Key route to all
three schools,
history of collisions.

Upgrade crosswalks to
high visibility.

ZZ13 5th Street
Hwy
101 N
Entrance
Key route to all
three schools,
history of collisions
and traffic
congestion.

Study options to install
roundabout.

Table 2. Recommendations for Gonzales High School (continued) Packet Pg. 184 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 75
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZZ34 5th Street
bridge
Hwy
101 N
Entrance
Hwy
101 S
Entrance
Key route to all
three schools.

Narrow sidewalks
and bike lanes on
bridge and history
of collisions.

Long term: Study
options to widen bridge
to create a separated
pedestrian and bicycle
path, or to construct a
separated bicycle and
pedestrian bridge over
Hwy 101 in another
location.

ZZ11 5th Street
In front of
5th Street
shopping
center at
driveway
No marked
crosswalks across
5th Street between
Hwy 101 and Fanoe
Road. People
crossing mid-block.

Conduct all-way stop
warrant.

ZZ18
Bus
driveway
between
5th Street
and 7th
Street
5th Street 7th Street
Difficult for buses to
turn left out of the
bus driveway due
to the number of
students walking.

Study feasibility of
allowing right turns
only on 7th Street from
bus driveway. This
might prevent buses
getting stuck trying
to turn left onto 7th
Street.

ZZ19
Bus
driveway
between
5th Street
and 7th
Street
5th Street 7th Street
High volumes of
pedestrians in
driveway, difficult
for buses to exit
campus.

Divide bus driveway
into separate lanes
for buses and
pedestrians.

ZZ14 7th Street Cielo Vista
Drive
Difficult for buses to
turn left out of the
bus driveway due
to the number of
students walking.

Low visibility for
drivers around
curve at Cielo Vista
Drive.

If separate bus lane
is created, remove
one crosswalk at 7th
Street/Cielo Vista
Drive and convert
remaining crosswalk to
raised crosswalk.

Table 2. Recommendations for Gonzales High School (continued) Packet Pg. 185 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 76
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZZ15 4th Street Center
Street
Elko
Street No bicycle facilities. Install bike lanes.

ZZ16 7th Street Alta Street End of 7th
Street No bicycle facilities. Install bike lanes.

ZZ20 Alta
Street C Street
Braga
Fresh
Gonzales
Plaza
No bicycle facilities. Install bike lanes.

ZZ21 Belden
Street
10th
Street 5th Street No bicycle facilities. Install bike lanes.

ZZ23 Center
Street 6th Street Pedestrian route to
school.

Install high-visibility
crosswalks on all legs
of intersection.

ZZ17 Belden
Street 6th Street Pedestrian route to
school.

Install high-visibility
crosswalks on the
east and west legs of
intersection.

ZZ24 Belden
Street C Street 3rd Street No bicycle facilities. Install bike lanes.

ZZ25 5th Street Center
Street
Elko
Street
Key pedestrian
route to school.

Install decorative
crosswalks at
intersections.

ZZ26 Citywide Need to update
signage.

Upgrade all pedestrian
and school crossing
signage.

TBD Day
Street 3rd Street 10th
Street No bicycle facilities. Install bike lanes.

Table 2. Recommendations for Gonzales High School (continued) Packet Pg. 186 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 77
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZZ27 Day
Street 6th Street Pedestrian route to
school.

Install high-visibility
crosswalks on all legs
of intersection.

ZZ28 Day
Street 7th Street Pedestrian route to
school.

Install high-visibility
crosswalks on all legs
of intersection.

ZZ29 Day
Street 8th Street
Pedestrian route to
school. Reports of
speeding.

Install curb extensions
on all four corners
of the intersection.

Install high-visibility
crosswalks and
flashing stop signs on
the east and west legs
of the intersection.

ZZ30 Del Monte
Drive
Cielo Vista
Drive
Pedestrian route to
school.

Install high-visibility
crosswalks on all legs
of intersection.

ZZ31 Elko
Street 7th Street Pedestrian route to
school.

Install high-visibility
crosswalks on all legs
of intersection.

ZZ33
Johnson
Canyon
Road
Fanoe
Road
Iverson
Road
Gonzales Youth
Commission
expressed desire
for off-street paths
to allow safe cycling
for exercise and
recreation.

Install multi-use path.

ZZ36 Longhorn
Drive
Holstein
Way
Key pedestrian
route to school.

Reports of
speeding.

Install flashing stop
signs on east and west
legs of the intersection.

Install street lighting at
existing crosswalk.

Table 2. Recommendations for Gonzales High School (continued) Packet Pg. 187 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 78
Table 2. Recommendations for Gonzales High School (continued) ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZZ37 Longhorn
Drive
Mustang
Way
Reports of
speeding, and
drivers not yielding
to pedestrians.

Install flashing stop
signs on east and west
legs of the intersection.

Install street lighting at
existing crosswalk.

ZZ38 Fanoe
Road
Rhone
Way 5th Street No bicycle facilities
Widen the sidewalk
on the west side of
Fanoe Road to create
a shared-use path.

ZZ39
School
parking
lot
Elko
Street
Limited bike parking
on campus.

Install or upgrade bike
parking.

ZX01 5th Street
Hwy
101 N
Entrance
Fanoe
Road
Opportunity to
improve bicycle
facilities and safety
of crossings.

Consider conversion
of eastbound lane to
right-turn lanes into
shopping center and
bus pullout. Evaluate
for similar treatments
in westbound lane.

ZX02 5th Street
Shopping
center
driveway
closest to
McDonald’s
Congestion
in and out of
shopping center.

Conflicts reported
between drivers
and pedestrians
crossing the
shopping center
driveway.

Consider limiting to
right-in/right-out only.

ZX03 Citywide
Need for improved
lighting at
crosswalks.

Install pedestrian
lighting at marked
crosswalks,
with a focus on
neighborhoods west of
Hwy 101.

Packet Pg. 188 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 79
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZX04 General Congestion on 5th
Street after school.

Work with industrial
plants south of Alta
Street to stagger hours
to reduce the number
of employees leaving
or going to work during
school arrival and
dismissal times.

Table 2. Recommendations for Gonzales High School (continued) Packet Pg. 189 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) EY
SO
Fairview
Middle La Gloria
Elementary
Install curb
extensions
Consider
roundabout
Evaluate for
4-way stop
Streamline bus operations
to right-in, right-out only.

Divide bus driveway into
separate lanes for buses
and pedestrians.

Install
decorative
crosswalks
Widen bridge across US-101
to create multi-use
path, or construct new
bicycle/pedestrian bridge
Install
neighborhood
traffic
circle
Install
neighborhood
traffic
circle
Maxar, Microsoft
Gonzales High - Safe Routes to Schools Recommendations
Existing Bikeways
Class II Bike Lane
Recommended Bikeways
Class I Shared Use Path
Class II Bike Lane
Class IV Separated Bikeway
School
Library
Parks/Open Space
City Limits
Intersection Recommendations
High Visibility Crosswalk
Rectangular Rapid Flashing
Beacon
Curb Extension
¯
0 0.13 0.25 Miles
Gonzales High
Remove one crosswalk
and convert
remaining crosswalk
to raised crosswalk
Consider
roundabout
Install or
update
bike
parking
Install
neighborhood
traffic
circle
Install
decorative
crosswalks
Figure 19. Gonzales High Recommendations
Packet Pg. 190 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 81
La Gloria Elementary
La Gloria Elementary School is located in central
Gonzales, adjacent to Fairview Middle School and
La Gonzales High School, and draws students from
the entire city (see Figure 21).

Parent Survey
La Gloria Elementary School parents were asked
to complete a bilingual survey about their attitudes
toward walking and biking to school in spring and
fall of 2022, and 21 surveys were received back.

The full survey report is in the Appendix.

The survey asked parents to identify the most
important factors in their decision making on
whether to allow their children to walk or bike to
school. The top responses are listed in Figure 20.

GRADE LEVELS
K-5

NUMBER OF STUDENTS
888

STUDENTS QUALIFYING

FOR FREE OR

REDUCED MEALS

82.5%

STUDENTS RESIDING
WITHIN 1 MILE

OF SCHOOL
67%

STUDENTS USING ACTIVE

TRANSPORTATION
(based on 21 survey
responses)
14%
Figure 20. Parents’ Concerns about
Children Walking or Biking to School
(respondents could select more than one)

AMOUNT OF

TRAFFIC ALONG
ROUTE

SAFETY OF

INTERSECTIONS

AND CROSSINGS

SPEED OF TRAFFIC

ALONG ROUTE

CROSSING
GUARDS

DISTANCE

WEATHER OR

CLIMATE
Packet Pg. 191 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 82 Figure 21. Map of La Gloria Elementary School Area 1st St
10th St
Alta St
Alta St
Elko St
Old Stage Rd
Alta St
Gonzales River Rd
5th St Herold Pkwy
Alta St/Old US Hwy 101
Sources: Esri, HERE, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community La Gloria Elementary Salinas Valley Safe Routes to School Plan 0 0.5 1 0.25
Miles

0.5 ≥ 1 mile:177 students

0.25 ≥ 0.5 mile:324 students
≥ 1/4 mile:87 students
Public LibrariesLa GloriaStudents
Existing Bike Infrastructure
Bike LaneCity Limits
≤ 1 mile:287 students
Packet Pg. 192 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 83
Current Infrastructure Conditions
Motorist Conditions
• La Gloria Elementary School has a drop-off loop and a parking lot off Elko Street near 1st Street and Fairview Ave. Parking spaces in the lot are reserved for staff and visitors.
• The drop-off loop is open to parents before school but closed to them after school, when buses use the loop to pick students up.
• At the time of the audit, drop-off took place mostly in the drop-off loop and on the street along Elko and 1st Street, with many parents parking and walking their students to campus.
• School bus drop-off also takes place in the drop-off loop, in a designated bus area.
• There is traffic congestion on Elko Street and 1st Street before and after school. In the morning, traffic was backed up from the drop-off loop through the intersection of Elko and 1st Street.

Existing conditions at La Gloria Elementary
Packet Pg. 193 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 84
Pedestrian Conditions
• There are complete sidewalks on both sides of Elko Street, Fairview Ave, and 1st Street.
• The intersection of Elko Street and 1st Street is a three-way stop and has standard striped crosswalks.
• The intersection of Elko Street and 4th Street is an all-way stop and has standard striped crosswalks.
• There were no crossing guards at any of the nearby crossings at the time of audit.

Bicycling Conditions
• There are class II bike lanes on both sides of Elko Street, though drivers were observed parking in the bike lane across from La Gloria Elementary. • At the time of the audit, there were also class II bike lanes on 5th Street between Alta Street and Fanoe Road.
• There are no bicycle facilities on other neighborhood streets.

Recommended Infrastructure Improvements around
La Gloria Elementary School
The following table lists recommendations for La Gloria Elementary School, and the map below shows their locations in relation to the school.

Packet Pg. 194 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 85
ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZL01 1st Street Belden
Street
Pedestrian route to
school.

Install high-visibility
crosswalks on all legs
of the intersection.

ZL02 1st Street Center
Street
Pedestrian route to
school.

Install high-visibility
crosswalks on all legs
of the intersection.

ZL03 2nd Street Belden
Street
Pedestrian route to
school.

Install high-visibility
crosswalks on east
and west legs of the
intersection.

ZL04 2nd Street Center
Street
Pedestrian route to
school.

Install high-visibility
crosswalks on east
and west legs of the
intersection.

ZL05 3rd Street Belden
Street
Pedestrian route to
school.

Install high-visibility
crosswalks on east
and west legs of the
intersection.

ZL06 3rd Street Belden
Street
Reports of
speeding.

Install mini traffic
circle.

ZL07 3rd Street Center
Street
Pedestrian route to
school.

Install high-visibility
crosswalks on east
and west legs of the
intersection.

ZL08 Elko
Street 5th Street Fairview
Drive
Sidewalk on Elko
Street between
Fairview and La
Gloria was very
crowded before and
after school. Some
students walked in
the street.

Widen the sidewalk
on the east side of
Elko Street to create
a shared-use path
for pedestrians and
bicyclists. Include
benches and other
pedestrian amenities.

Table 3. Recommendations for La Gloria Elementary
Packet Pg. 195 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 86
Table 3. Recommendations for La Gloria Elementary (continued) ID
code Street Cross
Street 1
Cross
Street 2 Issue Recommendation
ZL09 1st Street Alta Street Centennial Drive
Sidewalk was
crowded before and
after school.

Widen the sidewalk
on both sides of the
street.

ZL10 Alta
Street
South of C
Street
Low visibility for
students walking
after dark.

Install street lighting at
the existing crosswalk.

ZL11 Elko
Street
1st Street/
Fairview
Drive
High pedestrian
and vehicle
volumes traveling
to school, traffic
backed up through
intersection. Difficult
for pedestrians to
cross.

Install curb extensions
or tighten the curb
radius on the northeast
and northwest corners
of the intersection.

Consider adding
bollards.

ZL12 Elko
Street
School
driveway
exit
Key pedestrian
route to school.

Install high-visibility
crosswalks on the
north and south legs.

ZL13
La Gloria
Parking
Lot
Elko
Street
Congestion in
drop-off loop
before school.

Traffic backs
up to Fairview
intersection.

Ask school staff or
volunteers to help
direct traffic in the
school loop, including
blocking entrance to
vehicles during pick-up
and waving vehicles
through the loop
during drop-off.

ZL14 General
area
Traffic congestion
before and after
school.

Implement park and
walk program in which
parents or guardians
park on 1st near the
skate park and walk to
pick up their children.

Packet Pg. 196 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) La Gloria Elementary
Consider
intersection
artwork
Consider intersection
artwork. Install
decorative crosswalks
Consider conversion of angled parking to parallel parking.

Add a crossing guard. Install decorative crosswalks
Consider additional
staff lot entrance
Install
neighborhood
traffic circle
Have staff direct
traffic in drop-off loop
during drop-off/pick-up
Implement
park and
walk program
Install
decorative
crosswalks
Maxar, Microsoft
La Gloria Elementary - Safe Routes to Schools Recommendations Existing Bikeways
Class II Bike Lane
Recommended Bikeways
Class I Shared Use Path
Class II Bike Lane
Class IV Separated Bikeway
School
Library
Parks/Open Space
City Limits
Intersection Recommendations
High Visibility Crosswalk
Rectangular Rapid Flashing
Beacon
Curb Extension
¯
0 0.05 0.1 Miles
Figure 22. La Gloria Elementary Recommendations
Packet Pg. 197 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 88
Policy and Program Recommendations
The recommendations below are for all school sites and are arranged by implementing agency and type of program. Some recommendations are listed under multiple organizations that could take the lead on implementation.

Transportation Agency for Monterey County (TAMC)
Education
• Support the Street Smarts traffic-safety education campaign, including information on how to use new infrastructure like roundabouts, class IV separated bikeways, and pedestrian hybrid beacons.
• Install traffic gardens at elementary schools and parks to provide space for traffic safety education.
• Promote the TAMC program that allows citizens to report sidewalk and bicycle facility hazards on Gonzales roadways.

Encouragement
• Work with schools to develop SchoolPool carpooling programs, with incentives for participation such as priority parking spaces and drop-off lanes. • Develop a bar-code scanner program that notifies parents when students arrive at school.
• Develop a pilot program to structure school arrival and dismissal times and locations by grade level and align it with education programs. • Promote the TAMC Safe Routes website (saferoutesmonterey.org) as a community resource for establishing walking school buses, finding safety information, etc.
• Continue to provide bike and skateboard racks to schools through the Bicycle Secure program.

Equity
• Design and implement public outreach and engagement that is broadly accessible and provides means for everyone to participate. • Provide an equitable share of transportation investments to underserved, racially diverse communities to improve their health, safety, and quality of life.

Packet Pg. 198 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 89
School Districts
Education
• Incorporate traffic safety education into
school curriculums.
• Partner with TAMC and other Safe Routes
to Schools partners to provide bicycle and
pedestrian safety education and training at
every elementary school.

Encouragement
• Adopt a district-wide policy supporting
active transportation projects
and programs.
• Establish a Safe Routes to Schools contact
at the district level to act as the point
person for education, programs,
and events.
• Provide orientation for principals and
school staff on Safe Routes to Schools
programs and best practices, including
traffic management.
• Where a bus stop for one school is near
another school, relocate the bus stop or
adjust pick-up times to reduce congestion.
• Promote events that encourage active
transportation, such as Walk and Roll to
School Day.
• Use the TAMC Bicycle Secure program
to provide secure bike, scooter, and
skateboard parking at each school site.
• Consider the use of electric school buses.

Engagement
• Reassess crossing guard funding and
recruiting structures to allow at least one
crossing guard per school for both morning
arrival and afternoon dismissal times
or develop a volunteer crossing guard
program to recruit and motivate volunteers.

City of Gonzales:

Police, Recreation, and Public
Works Departments
Education
• Train police officers to teach traffic
safety, with a focus on driver safety, and
accurately report collisions involving
bicyclists or pedestrians.
• Incorporate bike and walk safety trainings
and helmet giveaways into City messaging,
after-school programs, and events.

Encouragement
• Support and promote bike and pedestrian
encouragement activities such as Bike
Month, Ciclovía, and Walk and Roll to
School Day.

School Sites
Education
• Distribute a traffic circulation plan and
bike and pedestrian safety information
to parents at the beginning of the school
year through all possible channels (email,
handouts, parent meetings, back to school
nights, etc.).
• Hold school safety assemblies at the
beginning of the school year to go over
safe walking, biking, and drop-off practices.
• Pass out bike maps, resource lists, and
bike cage information to students every fall,
and conduct annual bike safety clinics.
• Incorporate active transportation into social
and emotional learning curriculums.
• Incorporate Chalk Your Walk programs into
arts curriculums.

Packet Pg. 199 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 90
• Develop a curriculum for teaching students
about the climate impacts of transportation,
transportation infrastructure, and the
built environment.
• For high school students, promote bus
routes for school transportation, develop
carpool incentive programs, and offer bike
maintenance courses through a Regional
Occupation Center (ROP) program.
• For high school students, expand health
leadership groups to include active
transportation issues, such as student bike/
pedestrian counts, active transportation
projects, and Safe Routes to Schools
support for younger students.
• Provide information to school staffs about
active-transportation and carpooling
options, including electric bikes.

Encouragement
• Incorporate active transportation and
support for Walk and Roll to School Day
into existing school health policies.
• Designate an administrative staff member
at each school as the Safe Routes to
Schools contact.
• Work to achieve Blue Zones Project
school certification.
• Host biannual Walk and Roll to School
Day events.
• Develop walking and rolling school bus
programs with incentives for participation.
• Develop SchoolPool carpooling programs
with incentives for participation, including
priority parking spaces and drop-off lanes.
• Establish and encourage use of Park and
Walk/Ride locations.
• Promote and incentivize middle- and highschool bike clubs, mountain bike clubs, and skateboard clubs.
• Promote and incentivize family walking
and biking groups to encourage more eyes
on the street, potentially through existing
parent groups.
• Stagger school start times between grade
levels to disperse student arrival and
dismissal traffic.
• Stagger school start times for schools
within two blocks of each other.
• Adjust school delivery times to avoid dropoff periods. • Develop partnerships with arts programs to
install public art along routes to schools.
• Add active-transportation information to
school staff signatures.
• Pursue grant funding through the
Specialized Outride program to bring bikes
and bike education to middle schools.

Engagement
• When possible, have school staff or
volunteers help with traffic control in school
parking lots for 15 minutes before and
after school.
• Pursue the AAA School Safety Patrol
program to engage students in
transportation safety (Monterey Park
Elementary is a model).

Packet Pg. 200 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 91
Non-Profits and Monterey County Health Department
Education
• Develop an annual crossing guard training program.
• Develop programs and events to provide parents and guardians with traffic safety education, such as the following:
◦ Community traffic safety education events on weekends. ◦ Traffic safety messaging at established parent meetings and events, such as back-to-school nights and spring open houses.
◦ Locate traffic-safety education staff members at schools to talk to parents during drop-off.
◦ Work with parent leaders to develop parent-driven programs. ◦ Provide training and tips on using the school drop-off loop. • Provide driver safety training, targeting youths and seniors. Consider partnering with the Gonzales Police Department or insurance companies to provide discounts for participation.

Families and Volunteers at Bike and Walk to School Day
Packet Pg. 201 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 92
• Provide bike and pedestrian safety training through after-school programs, such as the YMCA and the Boys and Girls Club.
• Provide pedestrian safety education and training to second graders, including classroom education and on-blacktop or neighborhood walking instruction.
• Provide bicycle safety education and training to fifth graders, including classroom education and on-bike safety rodeos taught by certified safety instructors.
• Develop a vertical education program with specific safety messaging for every grade level.
• Develop programs or events to provide family-focused bike- and walksafety trainings. • Pass out bike maps, resource lists, and bike cage information to students every fall, and conduct annual bike safety clinics. Work with Family Resource Centers to offer bike and pedestrian education and support. • Develop a curriculum for teaching students about the climate impacts of transportation, transportation infrastructure, and the built environment. • For high school students, promote bus routes for school transportation, develop carpool incentive programs, and offer bike maintenance courses through an ROP program.
• For high school students, expand health leadership groups to include active transportation issues, such as student bike/pedestrian counts, active transportation projects, and Safe Routes to Schools support for younger students.
• Support the Street Smarts traffic safety education campaign, including information on how to use new infrastructure like roundabouts and sharrows.
• Promote the City programs that allow citizens to report sidewalk hazards.

Packet Pg. 202 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Recommendations 93
Encouragement
• Provide principals and school staff with
orientation on Safe Routes to Schools
programs and best practices.
• Develop year-round walking or rolling
school bus programs with incentives
for participation.
• Develop a walking/rolling school bus toolkit
and training presentation for
parent volunteers.
• Develop SchoolPool carpooling programs,
with incentives for participation such as
priority parking spaces and drop-off lanes.
• Develop a social media campaign focused
on students and school staff to encourage
more biking and walking.
• Consider a program to provide free bus
passes to students.
• Offer middle- and high-school bike clubs,
mountain bike clubs, scooter clubs, and
skateboard clubs.
• Coordinate family walking and biking
groups to encourage more eyes on
the street.
• Develop and promote earn-a-bike or bikeloan programs in which students earn a bike by riding frequently or maintaining
perfect attendance. Explore partnerships
with the Gonzales Police Department to
provide abandoned bikes to students.
• Organize helmet giveaway events for
students and families.
• Develop programs to install public art along
routes to schools.
• Consider a neighborhood grant program to
support programs such as walking
school buses.

Equity
• Include members of disadvantaged
communities as stakeholders and
consider language accessibility in program
development. Emphasize the relationship
between health and active transportation in
all program messaging.
• Provide bilingual materials and staff for
all programs.
• Conduct an audit of past policies that
have limited access to safe transportation
options and propose new policies to
address these inequities.

Monterey-Salinas Transit (MST)
Encouragement
• Consider a program to provide free bus
passes to students.
• Expand bus routes to serve middle and
high schools that are not currently served
by MST, including Gonzales High and
Fairview Middle.

Packet Pg. 203 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 94
Implementation, Reporting, and Maintenance
Implementation and Reporting
The projects included in this plan will
be implemented over time as funding
becomes available. With limited funding,
the City of Gonzales must decide how to
prioritize the recommendations.

Some projects that are low cost
and have community support can
be incorporated into the City’s
maintenance programs and installed
using maintenance funds. For larger
projects, leveraging local funds with
additional grant funding will be critical.

There are also projects that will require
either private property acquisition or
coordination with Caltrans. Although these are high-cost projects that will take many years to fund, design, and construct, they are included in this plan as part of a long-term vision for the future of transportation in Gonzales.

The City of Gonzales has the opportunity to make bicycle and pedestrian improvements as part of ongoing road maintenance. The City is required to upgrade curb ramps to Americans with Disabilities Act standards during major road resurfacing projects. Many resurfacing projects provide chances to restripe roadways and install improvements such as high-visibility crosswalks, class IIB buffered bike lanes, green bike lane treatments, and class IV separated bikeways for a relatively low additional cost. Traffic signal maintenance and upgrades also provide opportunities to install countdown pedestrian signal heads, leading pedestrian-interval signal phasing, and video detection for cyclists. City staff will review the Safe Routes to Schools Plan project list when planning maintenance projects to look for ways to incorporate bike and pedestrian improvements. This allows for highly cost-effective implementation of the projects in this plan.

Outreach survey box for Gonzales Pilot Project
Packet Pg. 204 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Implementation, Reporting, and Maintenance 95 Installing bicycle and pedestrian improvements as part of regular maintenance is part of the “quick-build” approach to providing bicycle and pedestrian facilities, which allows jurisdictions to construct local facilities faster using lowcost materials. Materials such as paint, planters, and plastic posts are less expensive initially than new pavement or changes to curb alignments, but they have more substantial ongoing maintenance costs. Quick-build is best suited to temporary trial projects that can be adjusted in light of the success of the design and community feedback. More information on the quick-build approach can be found in the Quick-Build Guide developed by the California Bicycle Coalition and Alta Planning + Design.1
Projects from this plan can also be installed as future development occurs in Gonzales. This Safe Routes to Schools Plan provides a list of projects that can be used to mitigate land-use development impacts by reducing vehicle miles traveled. In 2013, California lawmakers approved Senate Bill 743, which considers vehicle miles traveled as a metric for determining impacts in transportation analysis under the California Environmental Quality Act (CEQA).

Jurisdictions are no longer required to use traffic congestion or level of service as a metric, although they can still enforce those through consistency with the agency’s General Plan. In addition, the traditional level-of-service metric may still be relevant to CEQA, as it relates to impacts on public services, including emergency response and transit. The state released guidelines in 2018 that recommended the use of vehicle miles traveled as the key metric for analyzing transportation impacts. The Safe Routes to Schools Plan is a resource that the city and developers can use for project ideas to improve biking and walking facilities and reduce vehicle miles traveled.
1 California Bicycle Coalition website, Quick Build Bikeway Networks. www.calbike.org/our_initiatives/quick-build-bikeway-networks-for-safer-streets.

Student art on planters during the Gonzales pilot project Packet Pg. 205 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 96
This chapter includes a list of roadways that are high priorities for future improvements based on criteria aligned with the vision and goals of this plan.

Individual projects will be prioritized for funding through the Monterey County Regional Transportation Plan and the City’s Capital Improvement Program (CIP). Reporting on project funding, design, and construction will occur through an update to the city council and the public during the annual CIP update process.

For projects within Caltrans rights of way, all improvements must be consistent with Highway Access Management Plans, and Caltrans maintenance agreements are required prior to new construction.

Encouragement events like Salinas’ Ciclovia support active transportation Packet Pg. 206 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Implementation, Reporting, and Maintenance 97 Corridor Prioritization
Key routes to school in Gonzales were ranked to help decisionmakers and City staff prioritize projects and identify the most competitive projects for various grant opportunities. Grant programs often prioritize larger-scale, corridor-wide improvements, and future grant applications are likely to focus on improvements to one or more streets in Gonzales rather than individual projects.

The corridors below (Table 5) were evaluated using four criteria aligned with the vision and goals of this plan and with common grant application criteria.

Equity scores are based on two sources: free or reduced price meal data, as an indicator of family income, and the Healthy Places Index map, which shows data on health indicators such as education, job opportunities, and clean air and water. Each corridor was assigned a number from 0 to 100 based on the criteria in Table 4.

Table 4: Criteria for Corridor Prioritization
Criterion Description Max Points
Safety
The following points are awarded for bicycle and pedestrian collisions in the last 10 years within 150 ft of the corridor, for a maximum of 30 points:
• 5 points per fatal or severe-injury collision.
• 1 point per other-visible-injury or complaint-of-pain collision. 30 Access to Key
Destinations
10 points for every school within 500 ft of the corridor and 5 points for every park, library, and recreation center, for a max of 25 points.
25 Equity 20 points if the project is located within an area designated as disadvantaged. 20
CommunityIdentified
Need
15 points if the project or location was identified by 10+ members of the community during project outreach.
10 points if the project or location was identified in one or more community planning documents.
25 TOTAL 100
Packet Pg. 207 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 98
Street Cross Street 1 Cross Street 2 Score
5th Street Alta Street Fanoe Road 100
Elko Street 5th Street 1st Street 70
Center Street 10th Street A Street 60
7th Street / Cielo Vista Alta Street Del Monte Drive 45 Belden Street 10th Street C Street 40
Longhorn Drive Hereford Drive Devon Way 25
Table 5: Prioritized Corridors List
Prioritized Corridor Lists
The table below shows the highest-priority corridors for Safe Routes to Schools improvements in the City of Gonzales. High-priority corridors are also shown below on Figure 23.

Packet Pg. 208 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Figure 23. Gonzales High-Priority Corridors
Packet Pg. 209 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 100
Participatory Budgeting
Funded Projects
The Gonzales steering committee led a participatory budgeting process in which community members decided democratically how to spend part of the public budget.

TAMC allocated $250,000 per city to implement projects from the Safe Routes to Schools Plan, and steering committees developed a process for community members to vote on which projects should be funded.

The Gonzales election was held in April–May 2024. People over the age of 16 who lived or worked in Gonzales were eligible to vote, and voting was available online and at six sites throughout the city. In total, 492 ballots were received that identified two projects as the highest priorities for community members. Steering Committee members presented the results to the Gonzales City Council in June 2024 and received approval in August 2024. Projects funded through participatory budgeting will begin implementation as soon as 2025. The City of Gonzales will construct as many recommendations as is feasible given current construction costs.

Table 6: Participatory Budgeting Funded Projects
School Location Project Description
All 5th Street at Hwy 101
North Entrance
Study options to install roundabout, study quick-build
curb extensions, and install high-visibility crosswalks and signage.

All 5th Street at Hwy 101
South Entrance
Study options to install roundabout, study quick-build
curb extensions, and install high-visibility crosswalks and signage.

All 5th Street at Rincon Road
Install curb extensions to move crosswalk closer
to center line on 5th Street. Install high-visibility
crosswalks on north and south legs of intersection.

Relocate stop bar to prevent cars from encroaching
on crosswalk.

Packet Pg. 210 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Implementation, Reporting, and Maintenance 101 Funding Sources
The following table lists grant and program-funding sources that might be used to implement the projects identified in this plan. Most state and federal funding sources require local matching funds.

Funding Source Capital
Improvements
Evaluation &
Planning
Education,
Encouragement
& Enforcement
Programs
Maintenance
Local
Measure X: Regional
Sales Tax X X X X
Transportation
Development Act X X X X
City General Funds X X X X
City Gas Tax Revenues X X X X
Foundations X X X
Businesses and
Corporations X X
Regional Surface
Transportation Program:

Competitive Funds

X X X X
Regional Surface
Transportation Program:

Formula Funds

X X X X
Developer Impact Fees X
Table 7: Funding Sources for Active Transportation
Packet Pg. 211 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 102
Funding Source Capital
Improvements
Evaluation &
Planning
Education,
Encouragement
& Enforcement
Programs
Maintenance
State
Active Transportation
Program X X X
California Office of Traffic
Safety X
AB 2766 X X X
State Highway Operations
and Protection Program
(SHOPP)
X X
State Transportation
Improvement Program
(STIP)
X
Federal
Surface Transportation
Block Grant/Regional
Surface Transportation
Program Exchange
(STBG/RSTPX)
X X X
Highway Safety
Improvement Program X X
Rebuilding American
Infrastructure with
Sustainability and Equity
(RAISE) Program
X
Safe Streets 4 All Program X
American Rescue Plan Act X X X X
Table 7: Funding Sources for Active Transportation (continued) Packet Pg. 212 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Gonzales : Implementation, Reporting, and Maintenance 103 Measure X
To address the ongoing shortfall in transportation funding, Monterey County voters approved Measure X in 2016. Measure X establishes a 3/8-percent sales tax that will provide approximately $20 million annually for local transportation projects over the next thirty years. Sixty percent of the funds are distributed by formula to cities and the County of Monterey for road maintenance, repair, and safety projects. This funding, together with funding in the Pedestrian and Bike Safety and Mobility category, can be used for Safe Routes to Schools projects.1 1 Transportation Agency for Monterey County. Measure X. www.tamcmonterey.org/measure-x.

Figure 24. Measure X Expenditure Categories
Source: Transportation Agency for Monterey County
60% 27%
13%
Local Road Projects
Regional Road Projects
Mobility for All
Packet Pg. 213 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan) Salinas Valley Safe Routes to Schools Plan 104
Maintenance
The need for maintenance of bicycle and pedestrian facilities is often reported by residents walking and bicycling on local roadways. There are several ways to report maintenance issues in and around the City of Gonzales:
• Maintenance issues in Gonzales can be reported through the City of Gonzales website: gonzalesca.gov/service-request-form.
• TAMC maintains the Bicycle Service Request program, a webpage where any issue related to bicycle safety in Monterey County can be reported:
www.tamcmonterey.org/bike-service-request-form. Reports are forwarded to the appropriate jurisdiction for action.
• Maintenance issues on state highways can be reported to Caltrans:
csr.dot.ca.gov.

The City of Gonzales is responsible for maintaining pavement on roads that have been accepted for maintenance by the City. The City also maintains signage, signals, striping, guardrails, and other traffic-safety devices; walls and other retaining structures; and drainage facilities serving the roadway.

The City of Gonzales currently employs the following maintenance policies and procedures to keep bicycle and pedestrian facilities in good repair:
• Bike lanes that are contiguous with a City-maintained roadway are maintained as part of the roadway. Tri-City Disposal, under their franchise agreement with the Salinas Valley Solid Waste Authority, is contracted to sweep streets and bike lanes once a week.
• According to the California Streets and Highways Code Section 5610, adjacent property owners are responsible for the maintenance of sidewalks along the frontage of their properties.
• According to the Streets and Highways Code, a set amount of maintenance funding is provided by the gas tax, and the City is charged with maintaining roadways as well as those funds allow. There is no specific standard to which a roadway must be maintained. Ideally, roads are resealed every five to ten years to keep the pavement in good condition. The City works to maximize the funding it receives to provide the greatest benefit to the greatest number of road users.

Packet Pg. 214 Attachment: Gonzales Safe Routes to Schools Plan (3148 : Final Draft Salinas Valley Safe Routes to School Plan)

Gonzales City CouncilNovember 18, 2024

Gonzales City Council
November 18, 2024