Agenda packet — Gonzales City Council, March 17, 2025

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

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A G E N D A

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
CITY COUNCIL CHAMBERS – 117 FOURTH STREET
GONZALES, CA 93926
MONDAY, MARCH 17, 2025
6:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

1. ROLL CALL- City Council/Successor Agency
Mayor Pro Tem/Vice Chair Liz Silva, Council/Agency Member Scott Funk, 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]

PRESENTATIONS

2. Certificates of Recognition to the Gonzales High School Girls Soccer Team

3. Introduction of Public Works Intern Jorge Ochoa

4. Community Center Progress Update

BUSINESS FROM THE PUBLIC

5. Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed three minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action. *
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

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

6. Approve the Joint City Council and Successor Agency - Regular Meeting - February 18, 2025 Minutes

7. Approve City Accounts Payable Warrants #51523-51673

8. City Manager’s Report

9. Community Development Department Activity Report

10. Community Engagement & Recreation Departments Activity Report

11. Fire Department Activity Report

12. Police Department Activity Report

13. Public Works/City Engineer Department Activity Report

14. Consider Adoption of the Updated Mitigation Rates as Provided in Exhibit A of the Report, and Authorize Staff to Make the Necessary Changes to the City’s Cost for Services Fee Schedule

15. Consider Approval of, and Allow the City Manager to Sign an Agreement with the Monterey County Health Department for Work and Materials Funded through the Office of Traffic Safety for a Total of $40,000

16. Consider Approval of Resolution No. 2025-07, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Withdraw the Funding Donated for the Dennis and Janice Caprara Community Center Complex from the Community Foundation Account

REGULAR AGENDA

17. Consider Approval of Resolution No. 2025-08, A Resolution of the City Council of the City of Gonzales Stating its Intention and Expectation to Reimburse Expenditures Incurred by the City in the Planning, Design and Construction of the Industrial Wastewater System Prior to Obligations Approved by the State Water Resources Control Board
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2025-08

GONZALES YOUTH COUNCIL UPDATES

18. Oral Communications

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
*
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 MANAGER

21. Oral Communications

CLOSED SESSION

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

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

22. 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 Painters & Allied Trades District Council 26, International Fire Fighters Local 5388 and Unrepresented Employees.

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 Wednesday, March 12, 2025, at 5:00p.m. 03/12/25
Mary Villegas Date
Dennis & Janice Caprara
Community Center Complex GONZALES COMMUNITY CENTER COMPLEX Packet Pg. 4
Attachment: Community Center Complex Presentation (3211 :

AGENDA
ITEM
4 1. Construction Progress

2. Schedule

3. PMCM Update

4. Community Engagement

5. Q&A
Overview
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Attachment: Community Center Complex Presentation (3211 :

Construction Update
Construction began on June 6, 2024 with a Notice to
Proceed issued to Otto Construction.

Milestones Completed to Date
- Underground utilities, storm, sewer, water
- Exterior and interior rough carpentry
- TPO roof installation
- Onsite paving (driveway + parking lot)
- Offsite sidewalk and MST bus flat (Fifth Street)
- Mechanical, Electrical, Plumbing and Fire
sprinkler rough
- Exterior finishes in progress
- Interior insulation and drywall in progress
- Exterior site improvements are in progress
- Rough grading complete
- Irrigation main installed
- Standing seam metal roof complete
- Storefront & curtainwall installed
- Glazing is 90% complete
- Site flat work in progress
Project completion is tracking for November 2025.

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Attachment: Community Center Complex Presentation (3211 :

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Attachment: Community Center Complex Presentation (3211 :

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Attachment: Community Center Complex Presentation (3211 :

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Attachment: Community Center Complex Presentation (3211 :

Schedule
● Upcoming Milestones:
○ Landscape Substantial Completion: July 11, 2025
○ Permanent Power: October 27, 2025
○ Substantial Completion: November 17, 2025
● Potential challenges and risks:
○ Weather
○ Supply Chain + Long Lead Times
■ Main Switchgear (MSB)
○ PG&E permanent power
Packet Pg. 10
Attachment: Community Center Complex Presentation (3211 :

Project Management
● Provide and manage web-based project document control (Newforma) ● Lead weekly internal coordination meetings (Harris + City Staff) ● Monitor all project expenditures and track project funding ○ Provide financial and narrative progress updates, to ensure compliance with various grant and USDA loan requirements
○ Review and certify City consultant project invoices
● Provide daily, monthly and quarterly progress reports for City and as required by various project grants
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Attachment: Community Center Complex Presentation (3211 :

Construction Management
● Lead weekly construction project meetings
○ 39 OAC meetings to date (City, WRNS, Otto, Harris & Associates) ○ Distribute meeting minutes and action items
● Review and process potential change order requests (PCO’s) ○ 23 PCOs reviewed to date
● Manage RFIs and submittals for contract conformance
○ 95 RFIs processed
○ 247 Submittals processed
● Coordinate and schedule inspections
○ 31 building inspections (4 Leaf)
○ 60 special inspections + material testing (Intertek PSI) ○ 67 site civil inspections (Harris & Associates)
○ Fire inspections (Gonzales Fire Department)
● Review and certify project monthly progress payment requests ○ 19 payment applications reviewed to date
● Monitor project schedule
○ Reviewed baseline schedule
○ Reviewed 9 monthly schedule updates to date
● Monthly labor compliance monitoring
○ Conformance to state and federal labor laws
Packet Pg. 12
Attachment: Community Center Complex Presentation (3211 :

Community Engagement: GYC + Building Dry-in
Gonzales Youth Council (GYC) Construction Engagement
● Planning + Programming + Design
● Construction Site Visits
● Furniture sit test (11/07/2024)
● Furniture site test at job site (02/06/2025)
Building Dry-in Milestone
● 45+ guests consisting of City Staff, project donors, elected officials, GUSD staff, GYC students, and community members gathered at the job site on 03/06/25 to celebrate the building dry-in milestone Packet Pg. 13
Attachment: Community Center Complex Presentation (3211 :

QUESTIONS
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Attachment: Community Center Complex Presentation (3211 :

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MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
TUESDAY, FEBRUARY 18, 2025
6:00 P.M.

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

PLEDGE OF ALLEGIANCE
Council Member Orozco led the flag salute.

1. ROLL CALL
Attendee Name Title Status
Jose L. Rios Mayor/Chair Present
Liz Silva Mayor Pro Tem/Vice Chair Present
Scott Funk 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 (via zoom), 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 Feb 18, 2025 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
6

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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. Blue Zones Presentation
Blue Zones Project Representatives Kendra Howell, Marcus Pulido, and Dalila Alvarado provided an update on the progress towards certification, highlighted achievements in work sites, schools, and restaurants, and discussed the need for updates in tobacco policy and built environment policy.

3. Student Opportunity and Achievement Rising (S.O.A.R.) Asset Mapping Youth Advisor Jessica Olmedo introduced the Youth Council members and their action project, and explained the collaboration with other youth councils and the funding received from the Wallace Foundation and Hartnell Foundation.

Youth Commissioners Cardenas and Mendez provided an update on the SOAR Asset Mapping Project about career pathways for youth in the City of Gonzales, survey on youth experiences and assets, outreach initiatives, survey results, students background, and students future plans.

4. Citywide Transportation Overview
Public Works Director Dobbins provided a presentation on the overview of unsafe driver behavior reporting, tool kit for traffic calming, pedestrian mobility projects, and planned street rehabilitation projects.

Pete Maturino, 537 Del Monte Drive, talked about the speeding problems in the block of Del Monte Drive which went into Rincon Road, and both were narrow streets. He elaborated on the accidents and complaints in that area and offered his help in getting signatures on a petition or whatever else we need to do to slow people down.

Jesus Amador, 21 Seventh Street, commented about having the same issue since there was no stop sign between Belden and Seventh Streets and people were going over 40 miles per hour. He said he had to capture some incidents on video and purchased signs from Home Depot but nothing was working. He asked for some type of change before someone got hurt.

The Council agreed and shared concerns about speeding and agreed with staff to do anything that would help slow things down.

City Manager Gil added that staff applied for a mobile radar trailer through a grant since the one the Police Department used had long been broken.

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Minutes Acceptance: Minutes of Feb 18, 2025 6:00 PM (CONSENT AGENDA)

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BUSINESS FROM THE PUBLIC

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

Jeff Morgan, CHISPA President, introduced himself and the CHISPA communities and mentioned he was excited to continue to explore ideas with the excellent City staff on how Alta Street would work. He mentioned they were coming up with some creative ideas and work with the Pembrook group on the Vista Lucia Project, and looked forward to seeing how CHISPA could help build more housing.

Henry Martinez Jr. (via zoom), commented about having two complaint forms from December and had not heard anything about them; Gonzales not being a sanctuary City; not seeing the City enforcing the Assembly Bill 413 nor painting the corners red. He mentioned he picked up three more new charges from the Police Department and had all the evidence he needed to make a joke of the Police Department including the cell phone calls saying there was no warrant. He said Gonzales was looking at massive lawsuits with the first one coming soon.

CONSENT AGENDA

6. Approve the Joint City Council and Successor Agency - Regular Meeting - February 3, 2025 Minutes

7. Approve City Accounts Payable Warrants #51470-51522

8. City Manager’s Report

9. Community Development Department Activity Report

10. Community Engagement & Recreation Departments Activity Report

11. Fire Department Activity Report

12. Police Department Activity Report

13. Public Works/City Engineer Department Activity Report Council Member Worthy appreciated every department’s report, but with regards to Item 10, she asked if it was possible to hear from Julie and Jessica as she felt it would be good to have an oral presentation so that they knew what was going on even though it was written very well. But since they were the department’s hands-on people, it would be good to hear from them maybe quarterly.

City Manager Gil responded yes, staff could do that.

RESULT: APPROVED [UNANIMOUS] Consent Agenda Items 6-13
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco *
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Minutes Acceptance: Minutes of Feb 18, 2025 6:00 PM (CONSENT AGENDA)

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GONZALES YOUTH COUNCIL UPDATES

14. Oral Communications
Youth Commissioner Mendez reported on the meetings they continue to have and their participation in the final decisions on the Community Center Project furniture.

BUSINESS FROM CITY COUNCIL

15. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
No report on this committee, but Mayor Rios reported on the Mayor's Selection Committee which was an exciting meeting where they discussed the LAFCO representation, and they voted for Mayor Donohue to represent that Board.
b. Association of Monterey Bay Area Governments
Council Member Funk reported on the first meeting where they introduced the new representatives from the County and Cities.
c. Monterey Salinas Transit
Council Member Worthy reported on the MST end of year report each Council Member received; the Roadeo award to Mayor LeBarre, and Orange Crush award she received; the appointments to the Measure Q Oversight Committee; Gonzales circulator data would be back in April; and announced the next meeting on March 10th.

16. Oral Communications
Council Member Silva announced this week was National Future Farmers of America Week and suggested giving FFA students encouragement for their hard work on their projects even in bad weather conditions. She also announced the Gonzales High Alumni multi-class reunion on September 6th at the Elks Lodge for anyone graduating between 1972 – 1978. She said people can call her for more information so she can direct them to the website.

Council Member Orozco thanked Police Chief Wise and City Manager Gil for attending the Know Your Rights meeting that was held on February 7th and thanked Chief Wise for his comments since there was really good feedback from the community who felt staff was very supportive. She also thanked Officer Perez who translated for the Chief and people had an opportunity to get a lot of their questions answered. She also thanked the new Superintendent Adame and his staff for the use of the facility. She announced a Meet and Greet event to meet Dr.

Adame this Friday from 5:30pm - 7:00pm. She announced she attended the Public Works Association Dinner where we received an award and one of our interns received a scholarship.

She also thanked the Gonzales Interact Students for a great job cleaning up Belden Street. She hoped to have a conversation on Saturday at the workshop about issues we continue to have such as parking on red zones, RVs parked on lawns, etc. since we continue to get those comments.

Mayor Rios said he was grateful and thankful for all the diligent work staff has doing on getting the development agreement complete and hoped to be in front of LAFCO sooner rather than later.

He thanked all staff involved this project since he knew it was tedious.

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Minutes Acceptance: Minutes of Feb 18, 2025 6:00 PM (CONSENT AGENDA)

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BUSINESS FROM CITY MANAGER

17. Oral Communications
City Manager Gil concurred with Mayor Rios and said this project required many documents with the Development Agreement and list of Conditions of Approval that staff was just finalizing. She was glad to report this project had been noticed and the Planning Commission meeting has been set on March 10th for presentation and consideration of the Vista Lucia Project, and then it would go to Council after that. She thanked all the staff and our legal support since this had been a really all hands-on deck approach, where staff and the Pembrook team were meeting 3 – 4 times a week. She reminded the Council about the Strategic Session this Saturday, February 22nd from 9:00am-2:00pm. She also announced the hiring of the new Community Development Technician who started today and would be introduced at the next meeting. She mentioned we had a Planning Commissioner seat open and was expecting another one, but staff was already recruiting. She asked the Council if they had anyone interested, to please contact Taven.

ADJOURNMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco The meeting was adjourned at 7:17 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
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Minutes Acceptance: Minutes of Feb 18, 2025 6:00 PM (CONSENT AGENDA) Packet Pg. 20
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) 7 Packet Pg. 21
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 22
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 23
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 24
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 25
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 26
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 27
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 28
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 29
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 30
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 31
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 32
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) Packet Pg. 33
Attachment: Warrants #51523-51673 (3218 : Approve City Accounts Payable Warrants #51523-51673) City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Carmen Gil, City Manager
SUBJECT: City Manager Report - February 2025

RECOMMENDATION

BACKGROUND

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

Explain:

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.

AGENDA
ITEM
8 Packet Pg. 34
Explain:

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

ALTERNATIVES

BUDGET IMPACT

CONCLUSION
Attachments:

1. City Manager Report February 2025
Packet Pg. 35
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 February has kept the team at City Hall busy working all things Vista Lucia. The new housing development that is being proposed off Fanoe Road. The team is making strides on the various aspects of the application and will be headed to the City Council for consideration on March 31st.

Dennis and Janice Caprara Community Center Complex
The Community Cetner continues to make headway. As you drive by 5th Street, you will see that most of the windows are up, and the building is almost fully enclosed. We are excited to see its progress and are beginning to gear up for its programming early next year.

City of Gonzales
City Manager Report
February 2025
In December, the City had to build an
emergency disposal pond at the City’s
Wastewater Treatment Plant. It was needed
right away due to slow percolation from
high groundwater, large amounts of agwash water coming from the Industrial Business Park and rainwater. The project
was authorized on December 11th and the
contractor (Swift Tectonics) quickly
mobilized on it. They worked 10-hour days
to have it completed by December 24th.

The project was presented with the Project
of the Year Award by the Monterey Bay
Chapter of the American Public Works
Association at their awards ceremony on
February 6th.

Growing Our Own
We would like to CONGRATULATE Jorge
Ochoa, our Public Works Intern and Gonzales
High Graduate, on receiving a $3,500
Scholarship from the American Public Works
Association. Jorge is pursing a degree in
Construction Management and is gaining a
great deal of hands-on experience with all the
projects underway at the City.

Packet Pg. 36
Attachment: City Manager Report February 2025 (3217 : City Manager Report - February 2025) Save the Date
:

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Attachment: City Manager Report February 2025 (3217 : City Manager Report - February 2025) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Activity Report

ECONOMIC DEVELOPMENT
Staff will be meeting on Friday, March 14, 2025, with the South County Roundtable, an extension of the MCBC Monterey County Business Council. This will be a Salinas Valley City-centered working session to develop enhanced marketing tools for tourism and increased retail and service businesses.

HOUSING
Vista Lucia Specific Plan. On Monday, March 10, 2025, the Planning Commission considered the VLSP project and recommended approval to the City Council. Staff will now prepare a public hearing notice for a Special Meeting of the City Council on Monday, March 31, 2025.

Housing Element. The Housing Element is nearing completion and a Public Hearing Notice will be prepared for the Planning Commission to consider a recommendation to the City Council on the Planning Commission’s next regular meeting date, April 14, 2025.

BUILDING DIVISION ACTIVITY
From February 1, 2025, through February 28, 2025 (28 reporting days), the City issued 9 permits for a photovoltaic work associated with solar installations, fire sprinklers, and plumbing. The estimated value of improvements was $120,598.

AGENDA
ITEM
9 Packet Pg. 38

VACANT PLANNING COMMISSIONER SEAT
The application period for submitting letters of interest for the vacant Planning Commissioner seat closes Friday, March 14, 2025. Other seats will soon be expiring, and we have asked for Commissioners to prepare letters of interest should they wish to continue with the Planning Commission.

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City of Gonzales

CITY MANAGER DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Activity Report
Current Activities
Kid Power
• Kid Power had a total of 30 kids for the month of February. We would like to start off by saying thank you so much to the American Legion Auxiliary for donating school supplies (clay, pencils, construction paper, glue, etc.) to Kid Power! We will be putting everything to good use. • Our school is getting ready for State testing, so we always go the extra mile and help the kids with sight words, math comprehension, and reading skills. Despite the State testing, we also made sure we had fun this month. We made some crafts with clay. We made homemade sidewalk chalk and decorated the parking lot.

AGENDA
ITEM
10 Packet Pg. 40
• For Valentine's Day, the kids made a backdrop so that we could have a photoshoot and messaged the parents a picture of their child. The kids also made crafts for each other, and we also helped them make a little box with treats and homemade cards. Overall, February was filled with lots of education, but also lots of fun!
City Sports League
• Our all-girls basketball league was a major success. The collaboration with Soledad and Greenfield was great. Our season ended for one of our divisions on Wednesday, February 26th for PreK-TK. The rest of the division will end in March.
• Our South County Girls softball league registration started on Feb. 11th. Our divisions include 7U, 10U and 14U. We will be collaborating with Soledad, Greenfield and King City. We have 17 participants registered so far. Our season will start in April. We are anticipating the Open Ceremony to be on Friday, April 11th. We hope to have one team in each age division. • Our Gonzales Youth Basketball League was a success this season. Apart from our 4th & 5th grade division, which suffered a decrease in numbers from last season. Last season we had 44 participants. This season we only had 16 participants. Part of that has to do with the addition of the all-girls league this season. The 4th-5th grade division lost 1/3 of its participants that were female. The other 40% decrease was from players either moving up to the higher division or just not returning.
• Our Gonzales Mini T-ball registration started on February 25th. We have 8 participants registered so far for the month of February, program is for ages 2 ½ - 4. We should have 4 teams this season.

The season is set to start on April 5th.

Recreation/Community Engagement
• We had plenty of Senior activities during the month of February. We finally kicked off Chair Yoga through Alliance on Aging, which we know has been a popular class in the community. We Packet Pg. 41
had a total of 5 participants; however, we know it typically takes a couple of classes before word starts to spread to other community members.
• At the beginning of February, we met with the Monterey County Health Department to discuss a grant they are applying for that would be catered towards the senior population and they would like to partner with the City of Gonzales. Some of the potential collaborations include educations classes regarding fall prevention as well as fitness classes. • We are currently working with multiple partners to host a Community Gardening Day on Saturday, March 29th, from 10:00am-1:00pm. Some of the activities for the day include rock painting station, weeding, and informing community members on how they can be involved in the garden more often.
• In February, we began the planning for our 2025 Car Show. This year we decided to collaborate with 2 Car Clubs, one of them being from Gonzales. We are currently still accepting registrations with pre-registration fees ranging from $25-$35 and on-site registrations ranging from $50-$60, we hope this encourages people to pre-register.
• In addition to car registrations, we also opened registrations for food and non-food vendors.

Within the first week that we opened registrations we received an influx of applicants and currently we have a total of 19 vendors registered, however, spaces are not reserved until payment has been made.

Gonzales Youth Council
• The month of February included multiple public speaking opportunities for the Gonzales Youth Council including a presentation regarding their SOAR presentation to the City Council during the meeting on Monday, February 3rd and on Tuesday, February 11th, they presented their Education Action Projects to the Gonzales School Board. • On Thursday, February 6th, the GYC had the opportunity to do an additional “sit test” with the furniture that is set to be chosen for the Teen Innovation Center. This time, the furniture was brought to the site, which granted the students with the opportunity to also tour the Community Center and view the progress that had been done since their last visit.

Packet Pg. 42
The Gonzales Youth Council hosted their first South County Youth Summit Planning Meeting on Friday, February 7th at the Gonzales Police Department Conference Room. Some of the topics of discussion included providing a summary of how the Youth Summit went last year, discovering what this youth summit meant for our youth and why they were so passionate about having it for a second year. They also decided to meet every two weeks, alternating between in-person and zoom meetings.

Packet Pg. 43
City of Gonzales

FIRE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, City Manager
SUBJECT: Fire Department Activity Report

RESPONSES
There were 83 calls for service during a very busy February including: 54 medical emergencies, 13 service calls, 4 vehicle injury accidents, 2 hazardous materials incidents, 1 vehicle fire, 3 false alarms, and 6 calls cancelled in route. The total number of calls for the first two months of 2025 is 140, for a 2.3 calls per day average. We received mutual aid twice for simultaneous calls and provided mutual aid to our neighbors twice during the month of February.

STAFFING
One career Firefighter position remains unfilled. We expect recruitment for that position will begin in late March. Three applicants for Volunteer Firefighter have submitted applications, been interviewed, and are continuing with the selection process.

TRAINING
Crews trained on ladders, rope rescue, incident command, and structural fire behavior.

EQUIPMENT
Engine 8111 was out of service for 10 days due to a broken water pump, and all other apparatus remain in service.

PREVENTION
Annual business and farm labor housing inspections were conducted.

AGENDA
ITEM
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GRANTS
The Fire Chief is meeting with our vendor in early March to begin the process of designing our forthcoming Community Emergency Alert System. The purchase of the system, as well as 5 years of operating costs, are funded by a grant from the California Department of Water Resources. Staff continues researching additional grant opportunities as they become available.

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City of Gonzales

POLICE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: February 2025 Activity Report
Crime and Arrests
The Gonzales Police Department investigated 8 Part I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of February 2025. During the same time last year, there were 11 Part I Crimes investigated.

During the month of February 2025, Officers made 12 arrests. During the same time last year, there were a total of 5 arrests.

During the month of February 2025, the Department initiated 3 Abandoned Vehicle Abatement (AVA) cases. All violations were self-abated by the registered owners upon notification of the Municipal Code Violation.

Calls for Service
The Department responded to 618 calls for service in February 2025. There were 56 crimes, accident, and information reports taken during the month.

Animal Control
During the month of February 2025, 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 1 2 0 0 1 0
Dogs 9 0 0 0 6 3
Total = 10 2 0 0 7 3
AGENDA
ITEM
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Significant Cases
Although the Police Department responded to 618 calls for service during the month of February 2025, the most significant cases involved 8 Part I crimes. 0- Homicide 0 - Rape, 1 - Robbery, 4 -Assault, 1 - Burglary, 1 -Larcenies, and 1 -Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

The Department Records staff attended a 16-hour California Public Records Act course at the Watsonville Police Department. This course is designed to teach statutory and case law requirements in the dissemination of public records.

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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Public Works/City Engineer Activity Report

WASTEWATER

1. Industrial Wastewater (IW) System – Construction of the IW Pipeline began on 11/04/2024 and is approximately 50% complete. The IW Treatment Facility contract was issued for public bid on 1/15/2025. Staff held a Prebid Meeting on 1/24/2025 attended by 13 contractors. The bid opening was held on 2/26/2025 and staff will provide an update at the 3/17/2025 Council meeting.

BUILDINGS
Community Center Complex Project – The project is on schedule and a celebration of “dry-in” milestone was held on 3/06/2025. The construction team will provide an update at the 3/17/2025 Council meeting. The on-site project camera can be accessed at this link:
https://share.earthcam.net/GonzalesCommunityCenter/gonzales_community_center_complex/camera /view_1/timelapse

ROADWAYS
Staff is seeking letter proposals from consultants to design the following street projects:
• Resurface two blocks of Fourth Street (Alta Minor to Center Street). Funding is $636,150 in SB 1 funding. The first block needs to be reconstructed, and the second block is a slurry seal. • Pavement rehabilitation in two Assessment Districts:
o In the Canyon Creek subdivision
o In the Industrial Business Park
AGENDA
ITEM
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• TAMC Safe Routes to School Program.
o The selected projects are #1) Pedestrian Improvements on Rincon Road and 5th Street and #2) Pedestrian Improvements on 5th Street and Highway 101 on and off ramps.
o Limits are from Highway 101 Southbound on/off ramps to the eastern edge of the Community Center site
o Seeking a preliminary design for curb extensions at the Fifth Street/Rincon Road intersection
o Funding is a $250,000 RSTP grant from the TAMC. These projects will be combined into one project as it’s the same road corridor.

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 PW Supervisor meet monthly with Fire Chief Jason and Police staff to discuss Emergency Preparedness. Topics include table top exercises, emergency notifications to residents and outfitting the Emergency Operations Center.

2. Geographic Information System (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). Other mapping efforts include assessing sidewalks to map uplifted or missing sidewalk panels and performing a street sign inspection.

3. South Salinas Valley Broadband JPA – On 2/09/2025, the City received the completed Design Package for the fiber optic project funded by a Local Agency Technical Assistance (LATA) Grant from the CPUC. Next step is securing state funding for construction.

PUBLIC WORKS OPERATIONS AND MAINTENANCE

WASTEWATER
Staff checks the influent and effluent, runs daily inspections and testing of Dissolved Oxygen levels, pH, and conductivity at the wastewater treatment plant daily. The effects of high flows during October and November are still impairing the plant. The new discharge pond is working well. Staff have been attempting to rebuild an existing trash pump to avoid purchasing a new one.

The contractor on the Industrial Wastewater pipeline hit the existing 21-inch sewer line and caused a minor sewer spill. City staff worked with the contractor to contain and mediate the spill. The spill was contained in a deep pit and didn’t reach ground level. The proper County and State agencies were notified, and the spill was cleaned and repaired. County personnel were onsite to approve the cleanup.

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Temporary repair at existing pipeline.

Staff also inspected a sewer lateral repair on Brockmann.

Repair work at Brockmann Drive.

WATER
Staff tests for chlorine residual daily, and maintenance on the water system. Staff repairs chlorine leaks and performs maintenance on the wells. For the month of February, all water samples taken at the sampling stations for water system tested negative for coliform. Water test results from the County of Monterey Environmental Health are attached.

Staff fixed six water leaks this month, four of which were on the city side of the meter. West Valley Construction repaired a major leak on Palamino Drive. Staff addressed leaks on Brockman, Ayrshire, Rincon and Belden. Depending on the size and type of leak, it takes two staff members several hours to repair water system leaks.

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Leak at Palamino Drive
Senate Bill 998 is a law that went into effect in 2018 and requires that community water systems allow consumers 60 days to pay their utility bill before water service can be disconnected. The City’s policy is:
a 7-day notice must be posted before a customer can be shut off. For the month of February, PW staff posted over 50 door tags for shut offs. Seven days later PW staff disconnected seven residents for lack of payment including a $50 reconnect fee. It takes several PW staff members approximately four hours to post +50 door hangers. On the day of shut-offs, staff disconnect unpaid water services before 8:00 am to allow residents to pay their utility bill so PW staff can restore their water service that day. PW staff then spend part of the day turning those water services back on.

PARKS
Staff mows turf areas in the City parks regularly. Staff cleans restrooms, remove trash, and make irrigation repairs in parks. Staff repair and maintain irrigation in Central and Centennial Park. Staff are replacing the solenoids on several irrigation valves at Centennial Field.

Staff working on irrigation valves.

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GOVERNMENT BUILDING
Staff clean the Vosti Center restrooms daily. Staff cleans the Council Chambers weekly. Staff order all supplies for City buildings and disburses them appropriately.

STREETS
Staff cleaned the bioswales along Center Street before the recent rains. It takes a week and up to four staff to clean (weed) the bioswales.

Staff cleaning bioswales
EVENTS
The Monterey Bay Area Self Insurance Authority (City’s insurance pool) offers select training for free.

Other training is offered at a price. Staff are utilizing any free training offered and some that is cost effective.

Staff will participate with colleagues from other South Valley cities in Ladder safety and ergonomics in King City on 3/12/2025. Two PW staff attended pesticide training in Salinas on 2/05/2025.

Attachments:

1. Monterey County Lab Testing Reports
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Packet Pg. 53
Attachment: Monterey County Lab Testing Reports (3215 : Public Works/City Engineer Department Activity Report) Packet Pg. 54
Attachment: Monterey County Lab Testing Reports (3215 : Public Works/City Engineer Department Activity Report) Packet Pg. 55
Attachment: Monterey County Lab Testing Reports (3215 : Public Works/City Engineer Department Activity Report) Packet Pg. 56
Attachment: Monterey County Lab Testing Reports (3215 : Public Works/City Engineer Department Activity Report) Packet Pg. 57
Attachment: Monterey County Lab Testing Reports (3215 : Public Works/City Engineer Department Activity Report) Packet Pg. 58
Attachment: Monterey County Lab Testing Reports (3215 : Public Works/City Engineer Department Activity Report) City of Gonzales

FIRE DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, City Manager
SUBJECT: Updated Mitigation Rates for Fire Department Emergency Response

RECOMMENDATION
Staff recommends the City Council adopt the updated mitigation rates as provided in Exhibit A, and authorize staff to make the necessary changes to the City’s Cost for Services Fee Schedule.

BACKGROUND
In March of 2016, the City Council authorized the City Manager to enter into an agreement with Fire Recovery USA for the purpose of recovering costs associated with Fire Department emergency response.

This agreement has allowed the Fire Department, through Fire Recovery USA, to bill insurance companies for the costs associated with mitigation of emergency incidents to recover costs. The primary focus of recovery efforts is towards vehicle accidents, because mitigation fees are built into many auto insurance policies. This allows for the Fire Department to recover costs without placing a financial burden on those involved in the accident. Cost recovery has also been successful for other types of incidents including fires and hazardous materials releases, when it is proven that the individuals involved were negligent in actions resulting in an emergency response, such as unauthorized control burns, and vehicles leaking fluids onto a roadway. This program has allowed the Fire Department to recover $34,933.12 in emergency response costs over the life of the program; however, the mitigation rates billed for specific types of response have not been increased since the program began in 2016.

REVIEW AND ANALYSIS
Explain Recommendation and How it Supports the Vision
AGENDA
ITEM
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City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.

Explain: Cost recovery efforts for emergency response allow for a way to supplement the Fire Department Budget without placing an additional financial burden on residents. Increasing the mitigation fees is necessary to keep pace with the rising costs involved with emergency response.

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

ALTERNATIVES
The Council could choose to leave the mitigation rates at current levels. That option is not recommended as it does not allow for recovery of the ever-increasing cost of emergency response.

BUDGET IMPACT
The revenues collected through cost recovery are dependent on the number of emergency incidents, and if the individuals involved are covered by insurance. Revenues cannot be accurately predicted; however, the program at current rates provides around $3,800 annually, so the increase in rates should lead to an increase in revenue. Fire Recovery USA takes a portion of the fees collected to administer the program so there is no cost to the Fire Department involved.

CONCLUSION
Staff recommends the City Council adopt the updated mitigation rates as provided in Exhibit A, and authorize staff to make the necessary changes to the City’s Cost for Services Fee Schedule.

Attachments:

1. 2025 Mitigation Rates
Packet Pg. 60
Rev. 2025.01

EXHIBIT A

MITIGATION RATES

BASED ON PER HOUR
The mitigation rates below are average “billing levels”, and are typical for the incident responses listed, however, when a claim is submitted, it may be itemized and based on the actual services provided.

These rates are based on actual costs using amortized schedules for apparatus (including useful life, equipment, repairs, and maintenance). Labor rates include an average department’s actual burdened labor costs and not just a firefighter's wage.

These include wages, retirement, benefits, workers comp, etc.

MOTOR VEHICLE INCIDENTS
Level 1 - $618.00
Provide hazardous materials assessment and scene stabilization. This will be the most common “billing level”. This occurs almost every time the fire department responds to an accident/incident.

Level 2 - $705.00
Includes Level 1 services as well as clean up and material used (sorbents) for hazardous fluid clean up and disposal. We will bill at this level if the fire department has to clean up any gasoline or other automotive fluids that are spilled as a result of the accident/incident.

Level 3 – CAR FIRE - $860.00
Provide scene safety, fire suppression, breathing air, rescue tools, hand tools, hose, tip use, foam, structure protection, and clean up gasoline or other automotive fluids that are spilled as a result of the accident/incident.

ADD-ON SERVICES:

Extrication - $1,859.00
Includes heavy rescue tools, ropes, airbags, cribbing etc. This charge will be added if the fire department has to free/remove anyone from the vehicle(s) using any equipment.

We will not bill at this level if the patient is simply unconscious and fire department is able to open the door to access the patient. This level is to be billed only if equipment is deployed.

Creating a Landing Zone - $567.00
Includes Air Care (multi-engine company response, mutual aid, helicopter). We will bill at this level any time a helicopter landing zone is created and/or is utilized to transport the patient(s).

Itemized Response: You have the option to bill each incident as an independent event with custom mitigation rates, for each incident using, itemized rates deemed usual, customary and reasonable (UCR). These incidents will be billed, itemized per apparatus, per personnel, plus products and equipment used.

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Attachment: 2025 Mitigation Rates (3207 : Adoption of Updated Mitigation Rates for Fire Department Emergency Response) Rev. 2025.01
HAZMAT
Level 1 - $999.00
Basic Response: Claim will include engine response, first responder assignment, perimeter establishment, evacuations, set-up and command.

Level 2 - $3,566.00
Intermediate Response: Claim will include engine response, first responder assignment, hazmat certified team and appropriate equipment, perimeter establishment, evacuations, set-up and command, Level A or B suit donning, breathing air and detection equipment. Set-up and removal of decon center.

Level 3 – $8,420.00
Advanced Response: Claim will include engine response, first responder assignment, hazmat certified team and appropriate equipment, perimeter establishment, evacuations, first responder set-up and command, Level A or B suit donning, breathing air and detection equipment and robot deployment. Set-up and removal of decon center, detection equipment, recovery and identification of material. Disposal and environment clean up. Includes above in addition to any disposal rates of material and contaminated equipment and material used at scene. Includes 3 hours of on scene time - each additional hour @ $391.00 per HAZMAT team.

FIRES
Assignment - $568.00 per hour, per engine / $711.00 per hour, per truck Includes:
• Scene Safety
• Investigation
• Fire / Hazard Control
This will be the most common “billing level”. This occurs almost every time the fire department responds to an incident.

OPTIONAL: A fire department has the option to bill each fire as an independent event with custom mitigation rates.

Itemized, per person, at various pay levels and for itemized products use.

ILLEGAL FIRES
Assignment - $568.00 per hour, per engine / $711.00 per hour, per truck Packet Pg. 62
Attachment: 2025 Mitigation Rates (3207 : Adoption of Updated Mitigation Rates for Fire Department Emergency Response) Rev. 2025.01
When a fire is started by any person or persons that requires a fire department response during a time or season when fires are regulated or controlled by local or state rules, provisions or ordinances because of pollution or fire danger concerns, such person or persons will be liable for the fire department response at a cost not to exceed the actual expenses incurred by the fire department to respond and contain the fire. Similarly, if a fire is started where permits are required for such a fire and the permit was not obtained and the fire department is required to respond to contain the fire the responsible party will be liable for the response at a cost not to exceed the actual expenses incurred by the fire department. The actual expenses will include direct labor, equipment costs and any other costs that can be reasonably allocated to the cost of the response.

WATER INCIDENTS
Level 1
Basic Response: Claim will include engine response, first responder assignment, perimeter establishment, evacuations, first responder set-up and command, scene safety and investigation (including possible patient contact, hazard control). This will be the most common “billing level”. This occurs almost every time the fire department responds to a water incident.

Billed at $583 plus $70 per hour, per rescue person.

Level 2
Intermediate Response: Includes Level 1 services as well as clean up and material used (sorbents), minor hazardous clean up and disposal. We will bill at this level if the fire department has to clean up small amounts of gasoline or other fluids that are spilled as a result of the incident.

Billed at $1,170 plus $70 per hour, per rescue person.

Level 3
Advanced Response: Includes Level 1 and Level 2 services as well as D.A.R.T. activation, donning breathing apparatus and detection equipment. Set up and removal of decon center, detection equipment, recovery and identification of material. Disposal and environment clean up. Includes above in addition to any disposal rates of material and contaminated equipment and material used at scene.

Billed at $2,897 plus $70 per hour per rescue person, plus $140 per hour per HAZMAT team member.

Level 4
Itemized Response: You have the option to bill each incident as an independent event with custom mitigation rates for each incident using itemized rates deemed usual, customary and reasonable (UCR). These incidents will be billed, itemized, per trained rescue person, plus rescue products used.

BACK COUNTRY OR SPECIAL RESCUE
Packet Pg. 63
Attachment: 2025 Mitigation Rates (3207 : Adoption of Updated Mitigation Rates for Fire Department Emergency Response) Rev. 2025.01
Itemized Response: Each incident will be billed with custom mitigation rates deemed usual, customary and reasonable (UCR). These incidents will be billed, itemized per apparatus per hour, per trained rescue person per hour, plus rescue products used.

Minimum billed $583 plus $70 per hour, per rescue person. Additional rates of $583 per hour per response vehicle and $70 per hour per rescue person.

CHIEF RESPONSE
This includes the set-up of Command and providing direction of the incident. This could include operations, safety, and administration of the incident.

Billed at $356 per hour.

MISCELLANEOUS / ADDITIONAL TIME ON-SCENE
ADDITIONAL TIME ON-SCENE (for all levels of service)
Engine billed at $568 per hour.

Truck billed at $771 per hour.

Command at $356 per hour
Miscellaneous equipment billed at $427.

MITIGATION RATE NOTES
The mitigation rates above are average “billing levels” for one hour of service, and are typical for the incident responses listed, however, when a claim is submitted, it may be itemized and based on the actual services provided.

These average mitigation rates were determined by itemizing costs for a typical run (from the time a fire apparatus leaves the station until it returns to the station) and are based on the actual costs, using amortized schedules for apparatus (including useful life, equipment, repairs, and maintenance) and labor rates (an average department’s “actual personnel expense” and not just a firefighter's basic wage). The actual personnel expense includes costs such as wages, retirement, benefits, workers comp, insurance, etc.

Packet Pg. 64
Attachment: 2025 Mitigation Rates (3207 : Adoption of Updated Mitigation Rates for Fire Department Emergency Response) City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Agreement with Monterey County Health Department for Office of Traffic Safety Grant

RECOMMENDATION
It is recommended that the City Council approve and allow the City Manager to sign an Agreement with the Monterey County Health Department for work and materials funded through the Office of Traffic Safety for a total of $40,000.

BACKGROUND
The Monterey County Health Department and the City of Gonzales have been long-time partners on pedestrian safety programs and projects. In 2024, a grant proposal was put together to the Office of Traffic Safety to help reduce pedestrian and cyclist injuries and fatalities due to collisions. The grant calls for a coordinated effort between the County and City to provide pedestrian and bicycle safety education to youth and community members in Gonzales.

The funding will pay for the administration and execution of pedestrian and bicycle safety community education and presentations for students and parents. It will also pay for helmet fittings, inspections and distributions (to include materials and helmets), and for our participation in Walking to School Days. In addition, funding will also allow us to purchase crosswalk lights to help illuminate the crosswalk at 5th Street to enhance pedestrian safety, and two (2) lighted stop signs and sleeves.

REVIEW & ANALYSIS
In partnership with our Health Department partners and others working on pedestrian safety and education, the Police Department will work to put on pedestrian safety education workshops and will participate in helmet fittings and giveaways.

AGENDA
ITEM
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These efforts, along with others happening in the community and the lit stop signs and lights for the crosswalk, will help to make our City streets safer.

Duties and Commitments
The Gonzales Police Department and Safety Personnel will conduct three (3) joint presentations at housing locations within the City. They will conduct three (3) presentations for parents at La Gloria, Fairview and Gonzales High School. They will assist in two (2) joint events during Bike Month (May) to properly fit and distribute helmets and provide bicycle safety information. They will also participate in Walking to School Days.

The City will install two lighted stop signs and reflective sleeves in key locations, as well as crosswalk lights on 5th Street to enhance the safety of pedestrians.

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

Explain: This program supports our community engagement efforts while also supporting our efforts to enhance pedestrian safety.

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

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

ALTERNATIVES
The Council can decide not to approve the grant. Staff does not recommend this option as these efforts will enhance community engagement and will provide much needed funding. Additionally, these funds will also allow us to purchase safety enhancements that we otherwise do not have the funding for.

BUDGET IMPACT
This grant would provide $40,000 to the City, increasing our revenues in FY 2024-2025 by approximately $20,000 and providing another $20,000 for FY 2025-2026.

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CONCLUSION
It is recommended that the City Council approve and allow the City Manager to sign an Agreement with the Monterey County Health Department for work and materials funded through the Office of Traffic Safety for a total of $40,000.

Attachments:

1. Agreement w/MoCo Health Dept for OTS Grant
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Packet Pg. 68
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 69
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 70
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 71
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 72
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 73
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 74
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 75
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 76
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 77
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Packet Pg. 78
Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Rev. C/P 022613 CDIP/OTS/STVS-City of Gonzales
Term: upon execution to September 30, 2025
NTE: $40,000

EXHIBIT-A
To Agreement by and between
County of Monterey, hereinafter referred to as “County” AND
City of Gonzales, hereinafter referred to as “CONTRACTOR” Scope of Services / Payment Provisions
A. SCOPE OF SERVICES
A.1 CONTRACTOR shall provide services and staff, and otherwise do all things necessary for or incidental to the performance of work, as set forth below:

Safe Travels Via Salinas (STVS) is a program within the County of Monterey Health Department (MCHD). The purpose of STVS is to work with local partners and communities to reduce pedestrian and cyclist injuries and fatalities due to collisions.

County will collaborate with City of Gonzales to provide pedestrian and bicycle safety education to youth and community members in the City of Gonzales.

A.1.1 CONTRACTOR shall conduct three (3) joint presentations at housing locations within the City of Gonzales, as determined collaboratively by community and school staff.

These presentations will address key safety education topics, including pedestrian safety, crossing safety, Walking School Bus activities and additional safety-related topics relevant to the community.

A.1.2 CONTRACTOR shall conduct three (3) presentations for parents at La Gloria Elementary, Fairview Middle School, and Gonzales High School. Presentations will cover topics such as pedestrian and bike safety, crossing safety, Walking School Bus activities, and additional relevant information.

A.1.3 CONTRACTOR shall conduct two (2) joint events during May (Bike Month) in collaboration with County staff to inspect, properly fit, and distribute helmets, and provide bicycle safety information. Event locations will be determined based on community needs and input.

A.1.4 CONTRACTOR shall provide Pedestrian and Bicycle safety education at locations based on the highest need and community input.

A.1.5 CONTRACTOR shall participate in two (2) community events, in addition to Bike Month activities, to inspect, properly fit, and distribute helmets, and provide bicycle safety information. Event locations will be determined based on community needs and input.

A.1.6 CONTRACTOR shall participate in four (4) walk to school days, ensuring that a minimum of one police officer is present to walk with families of La Gloria Elementary School as they walk from Central Park.

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Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Rev. C/P 022613 CDIP/OTS/STVS-City of Gonzales
Term: upon execution to September 30, 2025
NTE: $40,000
A.1.7 CONTRACTOR shall purchase illuminated crosswalk for 5th Street to enhance pedestrian and cyclist safety. The purchase of crosswalk lights will comply with the Buy America Act.

A.1.8 CONTRACTOR shall install illuminated crosswalk on 5th Street to increase pedestrian and cyclist safety.

A.1.9 CONTRACTOR shall cover installation cost of illuminated crosswalk for 5th Street.

A.1.10 CONTRACTOR shall submit an invoice for the purchase of illuminating crosswalk, along with before-and-after photos.

A.1.11 CONTRACTOR shall purchase two (2) lighted stop signs with reflective sleeves for installation at the intersections of Elko and 5th Street, and on 5th and Fanoe Street to enhance visibility and pedestrian safety. Specific locations may be adjusted based on input from the community, school staff, and police department. The purchase of lighted stop signs with reflective sleeves will comply with the Buy America Act.

A.1.12 CONTRACTOR shall install two (2) lighted stop signs at the intersections of Elko and 5th Street, and on 5th and Fanoe Street.

A.1.13 CONTRACTOR shall cover installation cost of two (2) lighted stop signs at the intersections of Elko and 5th Street, and on 5th and Fanoe Street.

A.1.14 CONTRACTOR shall submit an invoice for the purchase of two (2) lighted stop signs with reflective sleeves, along with before-and-after photos.

B. PAYMENT PROVISIONS
B.1 COMPENSATION/ PAYMENT
County shall pay an amount not to exceed $40,000 for the performance of all things necessary for or incidental to the performance of work as set forth in the Scope of Services. CONTRACTOR'S compensation for services rendered shall be based on the following rates or in accordance with the following terms:

There shall be no travel reimbursement allowed during this Agreement.

CONTRACTOR warrants that the cost charged for services under the terms of this contract are not in excess of those charged any other client for the same services performed by the same individuals.

B.2 CONTRACTORS BILLING PROCEDURES
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Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Rev. C/P 022613 CDIP/OTS/STVS-City of Gonzales
Term: upon execution to September 30, 2025
NTE: $40,000
Activity Description Amount
Pedestrian and Bicycle
Safety Community Education
Presentations
Conduct three (3) joint presentations at housing locations within the City of Gonzales, as determined collaboratively by community and school staff. These presentations will address key safety education topics, including pedestrian safety, crossing safety, Walking School Bus activities and additional safety-related topics relevant to the community. 3,910.17$
Pedestrian Safety Education
Presentations to parents
Conduct three (3) presentations for parents at La Gloria Elementary, Fairview Middles School, and Gonzales High
School. Presentations will cover topics such as pedestrian and bike safety, crossing safety, Walking School Bus
activities, and additional relevant information.
3,910.17$
Helmet fittings, inspections,
distributions
Conduct two (2) joint events during May (Bike Month) in collaboration with County of Monterey Health staff to
inspect, properly fit, and distribute helmets, and provide bicycle safety information. Event locations will be
determined based on community needs and input.
$3,247.24
Safety Education Provide Pedestrian and bicycle safety education at locations based on the highest need and community input. $3,739.50 Helmet fittings, inspections,
distributions at community
event
Participate in two (2) community events, in addition to Bike Month activities, to inspect, properly fit, and
distribute helmets, and provide bicycle safety information.

Event locations will be determined based on community
needs and input.
$2,247.24
Walking to School Days Participate in four (4) walk to school days, ensuring that a minimum of one police officer is present to walk with
families of La Gloria Elementary School as they walk from Central Park.
$2,058.47
Crosswalk lights Purchase of illuminated crosswalk lighting for 5th Street to enhance pedestrian and cyclist safety. The purchase of
crosswalk lights will comply with the Buy America Act.

Upon completion, the contractor shall submit an invoice for the purchase, along with before-and-after photos.
ll i h ll b d b
$9,143.50
Lighted stop signs Purchase two (2) lighted stop signs with reflective sleeves for installation at the intersections of Elko and 5th Street, and on 5th and Fanoe Street. Specific locations may be
adjusted based on input from the community, school staff, and police department. The purchase of crosswalk lights will comply with the Buy America Act. Upon completion,
the contractor shall submit an invoice for the purchase, along with before-and-after photos. Installation costs shall be covered by contractor.
11,743.71$
Not to exceed amount 40,000.00$

CITY OF GONZALES
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Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic Rev. C/P 022613 CDIP/OTS/STVS-City of Gonzales
Term: upon execution to September 30, 2025
NTE: $40,000
NOTE: Payment may be based upon satisfactory acceptance of each deliverable, payment after completion of each major part of the Agreement, payment at conclusion of the Agreement.

County may, in its sole discretion, terminate the contract or withhold payments claimed by CONTRACTOR for services rendered if CONTRACTOR fails to satisfactorily comply with any term or condition of this Agreement.

No payments in advance or in anticipation of services or supplies to be provided under this Agreement shall be made by County.

County shall not pay any claims for payment for services submitted more than twelve (12) months after the calendar month in which the services were completed.

DISALLOWED COSTS: CONTRACTOR is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its subcontractors.

Invoices shall be submitted in duplicate to:

County of Monterey Health Department County of Monterey Health Department Public Health Bureau - Accounts Payable Jairo Hernandez, Health Program Coordinator 1270 Natividad Road 1441 Schilling Place-South 1St Floor Salinas, CA 93906 Salinas, CA 93901
(831) 755-4500 (831) 279-4614
[email protected] [email protected] Invoices shall:
a. Be prepared on CONTRACTOR letterhead. An authorized official, employee, or agent certifying that the expenditures claimed represent services performed under this contract must sign invoices.
b. Bear the CONTRACTOR’s name as shown on the Agreement. c. Be submitted monthly.
d. Identify the billing and/or performance period covered by the invoice. e. Itemize costs for the billing period in the same detail as indicated in the Scope of Services in the Agreement. Reimbursement may only be sought for those costs and/or cost categories expressly identified as allowable in this Agreement and approved by the County of Monterey.

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Attachment: Agreement w/MoCo Health Dept for OTS Grant (3210 : Agreement with Monterey County Health Department for Office of Traffic City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-07 Withdraw Funding Donated for the Dennis and Janice Caprara Community Center Complex

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2025-07, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to withdraw the funding donated for the Dennis and Janice Caprara Community Center Complex from the Community Foundation Account.

BACKGROUND
The City embarked on a capital campaign in 2021 in support of the development of the Gonzales Community Center knowing that the project was going to take an outstanding amount of funding, but that there were generous people out there that believed in the community’s vision and wanted to support the development of the center.

An initial step for the Capital Campaign was to set up an account that could provide potential donors assurance that their donations would indeed go to the development of the center. For that, we had to identify a trusted partner that could provide that assurance and that believed in the project just as much as we did.

The Community Foundation for Monterey County is the go-to for setting up disaster funds, and they manage many other community funds and although they don’t typically do capital campaigns, they were gracious enough to work with us and establish a fund in which our Center’s donations could be held.

In November 2023, the City drew down $5.292 million, and in May of 2024 $326,458.44, today we have $285,682.87 sitting in the account which we would like to draw upon to help pay for the construction expenses.

AGENDA
ITEM
16 Packet Pg. 83

REVIEW & ANALYSIS
The funds in the account have been generously donated from members that support our community and that come from all walks of life. We have received donations ranging from $5 to $5 million, showing that people from all sides of the economic spectrum believe in the project and want to support it. We are fortunate to receive every single one of them, and every single donation makes a difference and gets us closer to our goal.

Explain: Construction is moving very rapidly; thus, we need to draw down the funding that has been made available to us by our generous donors.

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

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

ALTERNATIVES
There is no alternative to this. The donors donated the funds to the Community Center and we are in the mist of constructing it, therefore drawing down the funds is appropriate at this time.

BUDGET IMPACT
The Community Center Construction fund balance will grow in revenue by $285,682.87 requiring a budget amendment to reflect the new amount.

CONCLUSION
It is recommended that the City Council adopt Resolution No. 2025-07, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to withdraw the funding donated for the Dennis and Janice Caprara Community Center Complex from the Community Foundation Account.

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Attachments:

1. Resolution No. 2025-07
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RESOLUTION NO. 2025-07

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING THE CITY MANAGER TO WITHDRAW THE FUNDING DONATED

FOR THE DENNIS AND JANICE CAPRARA COMMUNITY CENTER COMPLEX FROM

THE COMMUNITY FOUNDATION ACCOUNT
WHEREAS, as the City of Gonzales embarked on its Capital Campaign for the Community Center Complex, it was important to provide potential donors with the assurance that all monies donated for the Complex would be held in one pot and would only be used for the development of the Community Cetner Complex; and
WHEREAS, to do that, we needed to find a reputable partner that understood our needs and supported the vision for the Community Center Complex; and WHEREAS, the Community Foundation for Monterey County was gracious enough to work with us and establish a fund in which such donations could be made to and held for the purposed Community Center Complex; and
WHEREAS, today, we are well on our way to making the Community Center Complex a reality, with construction planned for completion at the end of 2025 and its grand opening early 2026; and WHEREAS, we have drawn down $5.6 million already from the Community Foundation account, and currently have $285,682.87 in the account ready to be drawn down; and WHEREAS, we need the money as we are making headway on the project and are well into its construction.

NOW, THEREFORE, BE IT HEREBY RESOLVED, that the City Council of the City of Gonzales hereby authorizes the City Manager to withdraw the current amount of $285,682.87 and deposit it into the City’s Community Center Fund Balance.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 17th of March 2025, 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. 2025-07 (3216 : Resolution No. 2025-07 Withdraw Funding from the Community Foundation for the Community City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 17, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-08 Expenditures Reimbursement for Industrial Wastewater System Construction

RECOMMENDATION
Staff recommends the City Council Adopt Resolution 2025-08, A Resolution of the City Council of the City of Gonzales Stating its Intention and Expectation to Reimburse Expenditures Incurred by the City in the Planning, Design and Construction of the Industrial Wastewater System Prior to Obligations Approved by the State Water Resources Control Board.

BACKGROUND
Phase 1 of the Industrial Wastewater (IW) System will increase the capacity of the City’s wastewater system by 1.0 million gallons/day. The IW System will be delivered through the following construction contracts:
• IW Pipeline contract
• IW Treatment Facility contract
On August 6, 2024 City staff opened five bids for the IW Pipeline contract. On September 3, 2024, the Gonzales City Council awarded the IW Pipeline contract to Sierra Construction and Excavation, with construction beginning in November 2024, and anticipated completion in May 2025.

With construction of the IW Pipeline contract progressing on schedule, City staff issued the IW Treatment Facility (IWTF) for bid on January 15, 2025. On February 26, 2025 the City opened the following bids for the IWTF contract:

AGENDA
ITEM
17 Packet Pg. 87
Contractor Bid Amount Percent over
Low Bid
1 Gateway Pacific $21,938,000
<low bidder> - - -
2 Specialty Construction $22,219,663 1.28%
3 Clark Brothers $22,447,500 2.32%
4 Sierra Construction and Excavation $22,813,420 3.94%
5 Don Cascade $24,640,726 12.04%
6 Anderson Pacific $27,968,100 27.49%
It’s important to note that the three low bids are very close, with less than 2.5% difference. MNS Engineers is currently reviewing the three low bids for conformance with the City’s bid document including compliance with the SRF Loan requirements.

REVIEW & ANALYSIS
The following table provides a breakdown of anticipated costs for the IW System. As shown, staff anticipate a funding gap of $6,000,000 to complete the IW System.

Construction
IW Pipeline contract (under construction) $7,991,000 (1) IW Treatment Facility contract (based on bid results) $23,584,000 (2) Other Ancillary Work $175,000
Subtotal Construction = $31,750,000
Consultant Costs
Planning/Design Phase
Pretreatment Program $20,000
Finalize Design $60,000
Engineering Services During Bid Phase $220,000
Temporary and Permanent Easements $260,000
Construction Phase
Engineering Services During Construction $1,472,000
Program Management $400,000
Construction Management $2,860,000
Environmental $350,000
Subtotal Consultants = $5,642,000
City Costs
Legal and Financial $200,000
TOTAL = $37,592,000
SRF Loan = $28,884,000
Sewer Impact Fees = $2,750,000
SHORT FALL = $5,958,000
(1) Includes 5.0% Contingency
(2) Includes 7.5% Contingency
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SRF staff were contacted regarding the process for an amendment to the City’s $28.9M SRF loan and they provided the following information:
• The amendment process is initiated by a letter from the City Manager outlining the increase requested, and a justification (i.e. bids came in high). • The City shall provide SFR staff with updated financial reports for review by SRF staff to confirm the City’s sewer rates will cover the debt service on the additional loan amount. • The City Manager’s letter should include any adjustments to the construction completion date. • SRF’s review of the updated financial reports will take four to eight weeks after the updated documentation has been submitted.
• Once review of the updated Financial Reports is complete and they deem the City eligible for the SRF Amendment, it will take two to three months for the City to receive an executed SRF Amendment.

The City’s rate consultant, Lechowicz & Tseng, calculated there is room in the City’s sewer rates to cover the $6.0M Amendment. As demonstrated in the following table, the adopted sewer rates are sufficient to cover the required 1.20 debt service ratio.

FY2026
Net Revenue
FY2027
Net Revenue
Net Operating Revenue $1,976,166 $2,113,166
$28.884M SRF Loan at 1.7% interest $1,233,000 $1,233,000 Coverage 1.60 1.71
Additional Loan ($6.0M, 30 yrs at 1.70%) Debt $256,976 $256,976 TOTAL DEBT $1,489,976 $1,489,976
Coverage (based on $6.0M SRF Amendment) 1.33 1.42
Therefore, staff recommends that the City Council direct staff to pursue an amendment to the IW System’s $28.9M State Revolving Fund loan. To that end, staff prepared the attached letter for the City Manager’s signature requesting a SRF loan amendment of $6,000,000, bringing the total SRF loan amount to $34,884,000.

To initiate the SRF Financial Review, the Council needs to adopt the attached Resolution. Upon direction from the Council, staff will email the amendment request letter to SRF staff to begin the amendment process.

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
Packet Pg. 89
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 Yes X No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision above.

ALTERNATIVES
Amend or modify staff’s recommendation.

BUDGET IMPACT
There is no cost impacts related to this staff report

CONCLUSIONS
Staff recommends the City Council Adopt Resolution 2025-08, A Resolution of the City Council of the City of Gonzales Stating its Intention and Expectation to Reimburse Expenditures Incurred by the City in the Planning, Design and Construction of the Industrial Wastewater System Prior to Obligations Approved by the State Water Resources Control Board.

Attachments:

1. Letter to Initiate the SRF Loan Amendment Process

2. Resolution No. 2025-08
Packet Pg. 90
Small town,big heart! ~ ¡Pueblo chico, corazóngrande!
147 Fourth St. · PO Box 647 Gonzales, CA 93926· Phone: (831) 675–5000· Fax: (831) 675-2644 https://gonzalesca.gov/
City of Gonzales
Council Member Scott Funk, Council Member Lorraine Worthy, Council MemberMaria Orozco Mayor Jose L. Rios, Mayor Pro Tem Liz Silva, City Manager Carmen Gil March 11, 2025
Sunny Kals, Water Recycling Funding Program Manager via email Division of Financial Assistance
State Water Resources Control Board
P.O. Box 944212
Sacramento, CA 94244-2120
Subject: City of Gonzales Industrial Wastewater System SRF Loan Amendment Request Agreement No. D2301008, Project No. C-06-8574-110
The Salinas Valley is known as the “Salad Bowl of the World,” due to the many crops grown and harvested locally. The City of Gonzales is a net importer of jobs due to the agriculture processing facilities in the City’s Industrial Business Park which contribute 80 percent of the flow to the City’s Municipal Wastewater Treatment Plant (MWWTP). The MWWTP is permitted for an average daily flow of 1.3 million gallons per day (MGD). With current wastewater flows averaging 1.2 MGD, the MWWTP is at capacity. Additionally, the Regional Water Quality Control Board (RWQCB) issued new permit requirements in 2023, which the MWWTP is unable to meet.

As the vast majority of flow is from industrial dischargers, a separate Industrial Wastewater System was determined to be the best step forward toward regulatory compliance. The City worked closely with the RWQCB and the Division of Financial Assistance (DFA) on this project, ultimately securing a $28,884,000 State Revolving Fund (SRF) Loan Agreement (Agreement No. D2301008) on July 12, 2024, for installment of the City’s Industrial Wastewater System (Project No. C-06-8574-11).

On June 27, 2024, City staff issued the IW Conveyance Project (first portion of the IW System) for public bid, and opened the following bids on August 6, 2024:
1 Sierra Construction and Excavation $7,461,840
<low bidder>
2 Ranger Pipeline $7,597,350
3 Specialty Construction $7,691,956
4 Anderson Pacific $8,766,000
5 Monterey Peninsula Engineering $14,335,000
On September 3, 2024, the Gonzales City Council awarded the IW Conveyance Project to Sierra Construction and Excavation, with construction beginning in November 2024, and anticipated completion in May 2025. In order to bridge the cash flow gap between the required contractor payments Packet Pg. 91
Attachment: Letter to Initiate the SRF Loan Amendment Process (3214 : Resolution No. 2025-08 Expenditures Reimbursement for Industrial within 30 days and SRF reimbursements, the City also obtained a $10,000,000 construction loan from Banner Bank.

With the IW Conveyance Project progressing well, on January 15, 2025, City staff issued the IW Treatment Facility (IWTF) for bid. On February 26, 2025, the City opened the following bids:
1 Gateway Pacific $21,938,000
<low bidder>
2 Specialty Construction $22,219,663
3 Clark Brothers $22,447,500
4 SCEI $22,813,420
5 Don Cascade $24,640,726
6 Anderson Pacific $27,968,100
The project team updated the anticipated project costs based on the status of the Collection System project and the IWTF low bid of $21,938,000. The following table provides a breakdown of anticipated costs. As shown, the City anticipates a funding gap of approximately $6,000,000 to complete the project.

Table 1 – Anticipated Project Costs
Construction
Collection System $7,991,000 (1)
IWTF $23,584,000 (2)
Other Ancillary Work $175,000
Subtotal Construction $31,750,000
Consultant Costs
Planning/Design Phase
Pretreatment Program $20,000
Finalize Design $60,000
Engineering Services During Bid $220,000
Easements $260,000
Construction Phase
Engineering Services During Construction $1,472,000
Program Management $400,000
Construction Management $2,860,000
Environmental $350,000
Subtotal Consultants $5,642,000
City Costs
Legal and Financial $200,000
TOTAL $37,592,000
SRF Loan $28,884,000
Sewer Impact Fees $2,750,000
Packet Pg. 92
Attachment: Letter to Initiate the SRF Loan Amendment Process (3214 : Resolution No. 2025-08 Expenditures Reimbursement for Industrial Deficit = $5,958,000
(1) Includes 5.0% Contingency
(2) Includes 7.5% Contingency
The City’s rate consultant, Lechowicz & Tseng Consultants, was consulted as well. Based on the new sewer rates effective on January 1, 2024, the City’s net operating revenue will be sufficient to cover the required 1.20 debt service ratio, assuming the City is able to extend the SRF loan by an additional $6,000,000, as demonstrated by Table 2:

Table 2. Gap Funding Scenario
FY2026
Net Revenue
FY2027
Net Revenue
Net Operating Revenue $1,976,166 $2,113,166
$28.884M SRF Loan at 1.7% interest $1,233,000 $1,233,000 Coverage 1.60 1.71
Additional Loan ($6M, 30 yrs at 1.7%) Debt $256,976 $256,976 TOTAL DEBT $1,489,976 $1,489,976
Coverage 1.33 1.42
The City hereby requests consideration for a SRF loan amendment of $6,000,000, bringing the total loan amount to $34,884,000. As the City is anticipating issuance of a Time Schedule Ordinance from the RWQCB to reach discharge compliance, and the IWTF bids expire as of May 26, 2025, an expedited response would be appreciated. We appreciate your time and consideration on this matter.

We look forward to working with SRF staff on this amendment, and please contact Patrick Dobbins at (831) 675-5000 with any questions or to arrange a meeting to discuss this matter.

Sincerely,
Carmen Gil
City Manager
Copies: Patrick Dobbins, Public Works Director/City Engineer Mike Howard, Finance Director
Megan Panofsky, MNS Engineers
Project File
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Attachment: Letter to Initiate the SRF Loan Amendment Process (3214 : Resolution No. 2025-08 Expenditures Reimbursement for Industrial

Page 1 of 2 ends

RESOLUTION NO. 2025-08

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES STATING

ITS INTENTION AND EXPECTATION TO REIMBURSE EXPENDITURES

INCURRED BY THE CITY IN THE PLANNING, DESIGN AND CONSTRUCTION OF

THE INDUSTRIAL WASTEWATER SYSTEM PRIOR TO OBLIGATIONS APPROVED

BY THE STATE WATER RESOURCES CONTROL BOARD
WHEREAS, the City of Gonzales ("City") desires to finance the costs of constructing the Industrial Wastewater System, including treatment facilities, pipelines and other infrastructure (the "Project"); and
WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or portions of the Project with monies ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the City desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the City; and WHEREAS, the City has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the City for the Expenditures from the proceeds of the Obligations.

WHEREAS, upon completion of the Industrial Wastewater (IW) System, the City plans to rehabilitate the existing wastewater treatment plant to improve its treatment performance required under Order No. R3-2020-0020, General Waste Discharge Requirements from the Regional Water Quality Control Board; and WHEREAS, The City issued the IW Treatment Facility (IWTF) for public bid on January 15, 2025 and on February 26, 2025 the City opened the six bids for the IWTF contract. Based on the lowest bid, completing the IW System requires a $6,000,000 SRF Amendment to fully fund the program.

NOW, THEREFORE, THE CITY OF GONZALES CITY COUNCIL DOES
HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. The City hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.

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Attachment: Resolution No. 2025-08 (3214 : Resolution No. 2025-08 Expenditures Reimbursement for Industrial Wastewater System

Page 2 of 2 ends

SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $34,884,000.

SECTION 3. This resolution is being adopted no later than 60 days after the date on which the City will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.

SECTION 4. Each City expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.

SECTION 5. To the best of our knowledge, this City is not aware of the previous adoption of official intents by the City that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.

SECTION 6. This resolution is adopted as official intent of the City to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.

SECTION 7. All the recitals in this Resolution are true and correct and this City so finds, determines and represents.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 17
th day of March 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
______________________________
Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2025-08 (3214 : Resolution No. 2025-08 Expenditures Reimbursement for Industrial Wastewater System

Gonzales City CouncilMarch 17, 2025

Gonzales City Council
March 17, 2025