Agenda packet — Gonzales City Council, May 19, 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, MAY 19, 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 Fairview Middle School Students Essay Contest Winners

3. Consider Approval of, and Present Resolution No. 2025-24, A Resolution of the City Council of the City of Gonzales Honoring the Gonzales Customs Car Club for Their Collaboration on the City’s Third Annual Show and Shine Car Show of April 5, 2025

4. Consider Approval of, and Present Resolution No. 2025-25, A Resolution of the City Council of the City of Gonzales Honoring the Street Life Car Club for Their Collaboration on the City’s Third Annual Show and Shine Car Show of April 5, 2025

5. Consider Approval of, and Present Proclamation No. 2025-03, A Proclamation of the City Council of the City of Gonzales Proclaiming May 18 - 24, 2025 as National Public Works Week *
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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6. Community Center Complex Progress Report

BUSINESS FROM THE PUBLIC

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

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

8. Approve the Joint City Council and Successor Agency - Regular Meeting - May 5, 2025 Minutes

9. Approve City Accounts Payable Warrants #51977-52046

10. City Manager’s Report

11. Community Development Department Activity Report

12. Community Engagement & Recreation Departments Activity Report

13. Fire Department Activity Report

14. Police Department Activity Report

15. Public Works/City Engineer Department Activity Report

16. Consider Approval of 1) Resolution No. 2025-19, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Sign a Reimbursement Agreement Between the City of Gonzales and Jackson Family Investments for the Revised Puente Del Monte Specific Plan, and Annexation Proposal Submitted to the City of Gonzales, April 7, 2025; and 2) Resolution No. 2025-27, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Sign a Consulting Services Agreement Between the City of Gonzales and Brent Slama Consulting to Provide Project Management and Planning Product Production for the Revised Puente Del Monte Specific Plan and Annexation Proposal Submitted to the City of Gonzales, April 7, 2025

17. Consider Approval of Resolution No. 2025-20, A Resolution of the City Council of the City of Gonzales Approving the Reappointment of Gloria Velasquez, Tencia Vargas and Adrian Paco to the Gonzales Planning Commission, and Setting the Term of the Commissioners to Expire Four (4) Years from Their Current Term Ending Date

18. Consider Approval of Resolution No. 2025-21, A Resolution of the City Council of the City of Gonzales Authorizing the Execution of a Memorandum of Understanding Between the City of Gonzales and the International Association of Fire Fighters Local 5388 Memorandum of Understanding, for the period covering January 1, 2025 through December 31, 2025

19. Consider Approval of Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Purchase of a Trailer Mounted Trash Pump for the Wastewater Treatment Plant in the Amount of $95,000

20. Consider Approval of Resolution No. 2025-26, A Resolution of the City Council of the City of Gonzales Regarding Local Safety Member Industrial Disability Retirement

REGULAR AGENDA

21. Gonzales Police Department’s AB 481 Annual Report
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Accept report and direct staff to post it on the Police Department and the City’s website, and direct that the meeting to allow public questions and input on the Report be appropriately publicized before the July 21st meeting *
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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22. Consider Approval of Resolution No. 2025-22, A Resolution of the City Council of the City of Gonzales Awarding a Contract to Gateway Pacific Contractors to Construct the Industrial Wastewater Treatment Facility on the Amount of $23,584,000 Including a Contingency Budget of $1,646,000
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2025-22

23. Fiscal Year 2023-2024 Audited Financial Statements and Management Report a) Staff Report
b) Public Comment
c) Council/Agency Discussion
d) Council/Agency Action
Staff Recommended Action-Accept the City and Successor Agency’s Audited Financial Statements and Management Report for Fiscal Year Ending June 30, 2024

GONZALES YOUTH COUNCIL UPDATES

24. Oral Communications

BUSINESS FROM CITY COUNCIL

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

26. Oral Communications

BUSINESS FROM CITY MANAGER

27. Oral Communications

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

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

I, Mary Villegas, Deputy City Clerk of the City of Gonzales, do hereby certify that a copy of the foregoing Joint City Council/Successor Agency Regular Meeting Agenda was posted at City Hall, Council Chambers, and on the City’s website by Thursday, May 15, 2025, at 5:00p.m. 05/15/25
Mary Villegas Date
*
AGENDA
ITEM
RESOLUTION NO. 2025-24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES HONORING

THE GONZALES CUSTOMS CAR CLUB FOR THEIR COLLABORATION ON THE CITY’S THIRD ANNUAL SHOW AND SHINE CAR SHOW OF APRIL 5, 2025 WHEREAS, the City Council of Gonzales first called for the Show and Shine Car Show to be organized in 2022 in the Downtown Area of Gonzales as part of the 75th Year Celebration of the town’s incorporation; and
WHEREAS, in its third year, the Annual Car Show has proved to be a success, bringing out car enthusiasts from near and far to visit and enjoy the day; and WHEREAS, this year, we had support from two Car Clubs that helped us organize the day, promote the show, serve as judges, and ensure that things ran smoothly; and WHEREAS, Gonzales Customs was one of the Car Clubs that supported the City in making the Car Show a success; and
WHEREAS, Gonzales Customs and its members have a passion for helping their communities and the children who reside in them; and
WHEREAS, Gonzales Customs members showcased their generosity by providing raffle prizes, including bikes for kids that were raffled on the day of the Car Show; and WHEREAS, the Car Show, with their support, generated funding for kid programming, which will be used to support the Holiday Lights Event this year that is geared toward children and youth of the community, bringing holiday spirit to them and their families during the Christmas Season.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GONZALES HEREBY:

Honors the Gonzales Customs Car Club for Their Support and Tremendous Efforts in Helping Put on a Successful 2025 Car Show
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 19th day of May 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
Packet Pg. 4
Attachment: Resolution No. 2025-24 (3263 : Resolution No. 2025-24 Honoring Gonzales Customs Car Club) 3 AGENDA
ITEM
RESOLUTION NO. 2025-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES HONORING STREET LIFE CAR CLUB FOR THEIR COLLABORATION ON THE CITY’S THIRD ANNUAL SHOW AND SHINE CAR SHOW OF APRIL 5, 2025
WHEREAS, the City Council of Gonzales first called for the Show and Shine Car Show to be organized in 2022 in the Downtown Area of Gonzales as part of the 75th Year Celebration of the town’s incorporation; and
WHEREAS, in its third year, the Annual Car Show has proved to be a success, bringing out car enthusiasts from near and far to visit and enjoy the day; and WHEREAS, this year we had support from two Car Clubs that helped us organize the day, promote the show, serve as judges and ensure that things ran smoothly; and WHEREAS, Street Life Car Club (Street Life) was one of the Car Clubs that supported the City in making the Car Show a success; and
WHEREAS, Street Life was established in Salinas, CA in 1983 and continues to grow strong till this day with members residing in Salinas, Gonzales, Soledad, Hollister and Redding; and WHEREAS, Street Life and its members have a passion for helping their communities; and WHEREAS, the Car Show, with their support, generated funding for kid programming, which will be used to support the Holiday Lights Event this year that is geared toward children and youth of the community, bringing holiday spirit to them and their families during the Christmas Season.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GONZALES HEREBY:

Honors the Street Life Car Club for the Support And Tremendous Efforts In Helping Put on a Successful 2025 Car Show
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 19th day of May 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
Packet Pg. 5
Attachment: Resolution No. 2025-25 (3266 : Resolution No. 2025-25 Honoring Street Life Car Club) 4 AGENDA
ITEM
PROCLAMATION NO. 2025-03
WHEREAS, Public Works staff is responsible for the infrastructure, facilities and services that are of vital importance to sustainable and resilient communities and to the public health, high quality of life and well-being of residents, visitors and businesses; and WHEREAS, such facilities and services could not be provided without the dedicated efforts of public works managers, engineers and staff from public agencies and the private sector, responsible for improving and protecting our nation’s transportation, water supply, water treatment, solid waste systems, public buildings, and other facilities essential to serve our communities; and
WHEREAS, it is in the public interest for civic leaders, residents and business owners to gain knowledge of and understand the public works programs in their communities; and WHEREAS, the American Public Works Association has celebrated National Public Works Week since 1960.

WHEREAS, in keeping with this year’s National Public Works Week theme of “People, Purpose, Presence” which highlights the cornerstones that motivate public works professionals to serve their communities every day, the Public Works staff with the cities of Gonzales, Soledad, Greenfield, and King City regularly collaborate on various public works aspects including coordinating the training of our Public Works field personnel; and WHEREAS, the City of Gonzales is an active member of the American Public Works Association including participating in events held by the Monterey Bay Chapter; and NOW, THEREFORE, BE IT PROCLAIMED I, Mayor Jose Rios, on behalf of the City Council of the City of Gonzales do hereby proclaim the week of May 18 - 24, 2025 as National Public Works Week; and urge our residents to join with representatives of the American Public Works Association and government agencies in activities and ceremonies that pay tribute to our public works professionals, engineers, managers and employees, and recognize the substantial contributions they make to our community’s health, safety, and quality of life.

Jose Rios, The Honorable Mayor
May 19, 2025
Packet Pg. 6
Attachment: Proclamation No. 2025-03 National Public Works Week (3251 : Proclamation No.2025-03 National Public Works Week) 5 Dennis & Janice Caprara
Community Center Complex GONZALES COMMUNITY CENTER COMPLEX AGENDA
ITEM
Packet Pg. 7
Attachment: Community Center Complex Progress Report
6 1. Project Milestones

2. May 2025 Construction Progress Update

3. Schedule

4. Community Engagement

5. Q&A
Overview
Packet Pg. 8
Attachment: Community Center Complex Progress Report
Milestones Completed To Date
● Installation of Underground wet utilities
(storm, sewer, water)
● Topout
● Mechanical, Electrical, Plumbing and
Fire Sprinkler Rough Complete
● Storefront and Curtainwall installation
● TPO and Metal Roof Complete
● Building Dry-in
Packet Pg. 9
Attachment: Community Center Complex Progress Report
May 2025 Construction Update
● Site Improvements ○ Site concrete placement is underway ○ Placed concrete seat walls at courtyard
○ Placed one of the two concrete planters at the courtyard ○ PG&E elec. primary conduit extension across Fifth Street ○ Driveway and parking lot site light poles
○ EV Charger transformer installation
Packet Pg. 10
Attachment: Community Center Complex Progress Report
Planter wall placement Site concrete placement PG&E elec. trench at Fifth St.

Formwork at Amphitheater Parking lot site lights EV transformer switch Packet Pg. 11
Attachment: Community Center Complex Progress Report
May 2025 Construction Progress Update
● Building Exterior
○ Pressure bar and beauty cap installation at storefront systems ○ Exterior flashing installation complete
○ EIFS finish system installation is in progress
■ Base coat is installed
■ Finish coat is 80% complete
Packet Pg. 12
Attachment: Community Center Complex Progress Report
Glazing pressure cap Flashing at EIFS walls EIFS insulation installation EIFS base coat (North elev.) EIFS finish coat (South elev.) EIFS finish coat (South elev.) Packet Pg. 13 Attachment: Community Center Complex Progress Report
May 2025 Construction Progress Update
● Building Interior
○ Installation of electrical subpanels
○ Casework in-wall supports are installed
○ Drywall installed on both sides of interior walls
○ Drywall screw inspections have been completed
○ Drywall taping and finishing is in progress
○ Casework installation is in progress
○ Ceramic tile work at restrooms is in progress
■ Levelling and waterproofing complete
■ Wall and floor tile installed at all single occupancy Family restrooms
■ Wall and floor tile is in progress at the Men’s and Women’s restrooms, at the courtyard
Packet Pg. 14
Attachment: Community Center Complex Progress Report
Ceramic wall & floor tile Drywall taping (Teen Lounge) Taping/mudding (Library) Casework @ Library staff area Casework @ Teen Classroom Drywall finishing at Library Packet Pg. 15 Attachment: Community Center Complex Progress Report
Packet Pg. 16
Attachment: Community Center Complex Progress Report
Schedule
● Upcoming Milestones ○ Landscape Substantial Completion: July 11, 2025 ○ Permanent Power: October 27, 2025
○ Substantial Completion: November 17, 2025
● Potential Challenges and Risks
○ Main switchgear (MSB) delivery
■ ETA: 07/23/2025
○ PG&E Permanent Power
Packet Pg. 17
Attachment: Community Center Complex Progress Report
Community Engagement
● Upcoming Activities
○ Community center project tours for local
Gonzales High School Students
○ Construction career presentations for
Gonzales High and Fairview middle school
students
Packet Pg. 18
Attachment: Community Center Complex Progress Report

QUESTIONS
Packet Pg. 19
Attachment: Community Center Complex Progress Report

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MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
MONDAY, MAY 5, 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
The flag salute was recited by all present.

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

Absent: Emily Mendez and Valeria Cardenas.

STAFF PRESENT
City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Finance Director Mike Howard (Via Zoom), 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
Packet Pg. 20
Minutes Acceptance: Minutes of May 5, 2025 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
8

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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. Consider Approval of, and Present Proclamation No. 2025-02, A Proclamation of the City Council of the City of Gonzales Proclaiming May 2025 as Poppy Month RESULT: APPROVED [UNANIMOUS] Proclamation No. 2025-02
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco Council Member Worthy read the proclamation and presented to Connie Arrellano, chair of the American Legion Auxiliary.

3. Recreation Department Presentation
Recreation Coordinator Jessica Olmedo, Sports & Senior Programs Coordinator Isabel Navarro, and Youth Program Coordinator Julie Douglas presented via PowerPoint, explaining the Recreation Department and Community Department Programs, Department staff, Kid Power, Camps, Sports, Senior Programs, Gonzales Youth Council, Community Engagement Partnerships, and the programs and events coming up. They also shared the total amount of participants in each program, community events held during the year, and the positive feedback staff received from the parents.

Mayor Pro Tem Silva questioned when the pool would be open for adult swim.

Recreation Coordinator Olmedo responded they were hoping to open on the first week of June or the following week. She mentioned they were still working on staffing and other factors to be able to open.

Mayor Pro Tem Silva thanked staff for the presentation and asked who umpired the games that the City organized.

Sports & Senior Programs Coordinator Navarro mentioned that a lot of the umpires were the High School kids that used to play with the City, and depending on who would be playing, the adults would also be officials for some teams.

Mayor Pro Tem Silva asked what the ages were to register kids for Kid Power and the Camps.

Packet Pg. 21
Minutes Acceptance: Minutes of May 5, 2025 6:00 PM (CONSENT AGENDA)

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Youth Program Coordinator Douglas responded the afterschool program consisted of Transitional Kinder through Fifth Grade, and the camps from Transitional Kinder to Eighth Grade.

Council Member Worthy thanked the Recreation staff for the presentation.

Council Member Orozco shared her grandkids had benefited from Kid Power Program in previous years.

BUSINESS FROM THE PUBLIC

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

Andrew Brown commented that the truck drivers used a program called HERE Map to navigate their routes, and to inform Caltrans to update their data regarding City of Gonzales roads with proper information. He also mentioned there were limited activities for young adults in the City and would like to see more activities in the future.

Roman Barba shared seeing people drinking in public at the 5 de Mayo Festival and disliked the horse poop all over town.

Santiago, 465 Venice Way, commented about living next to the park and having problems due to kids playing and sometimes breaking the windows of his house with either baseball balls or other types of balls. He requested Public Works to put up a net to prevent future breaking of windows or any other incidents. He provided his contact information to staff to talk about this problem.

Henry Martinez Sr. talked about an incident that happened at the 5 de Mayo event where it involved an ice cream vendor who was kicked out for not being authorized to sell ice cream at the park during the event.

CONSENT AGENDA

5. Approve the Joint City Council & Successor Agency - Regular Meeting - April 7, 2025 Minutes

6. Approve City Accounts Payable Warrants #51839- 51976

7. City Manager Report

8. Community Development Department Activity Report

9. Community Engagement & Recreation Departments Activity Report

10. Fire Department Activity Report

11. Police Department Activity Report

12. Public Works/City Engineer Department Activity Report

13. Consider Approval of Fireworks Sale Permit Applications Submitted by Shield Bearers and Spartan 300 Club, and Waive Business License Permit Taxes for the Two Non-Profit Groups

14. Consider Approval of Resolution No. 2025-16, A Resolution of the City Council of the City of Gonzales Authorizing the Execution of Funding Agreements with the State Water Resources Control Board for the Alpine Court Water and Sewer Service Extension Project

15. Consider Approval of Resolution No. 2025-17, A Resolution of the City Council of the City of Gonzales Approving Execution of a Memorandum of Understanding with the California Department of Forestry and Fire Protection to use Fire Camp Crews for Select Public Works Maintenance Services

16. Consider Approval of Resolution No. 2025-18, A Resolution of the City Council of the City of Gonzales Delegating Limited Authority to the City Manager to Settle Claims Against the City *
Packet Pg. 22
Minutes Acceptance: Minutes of May 5, 2025 6:00 PM (CONSENT AGENDA)

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17. Consider Approval of Amendment #5 to the Lease Agreement with Laboratory Corporation of America, a Delaware Corporation, for Continued Use of a Portion of the Old Medical Building Located at 133 Fourth Street
Mayor Pro Tem Silva pulled Item 12. She asked if the City would get reimbursed for water damages caused by residents or any accidents that occurred.

Public Works Director Dobbins answered that the City would submit a refund request but unfortunately, sometimes the City did not get reimbursed due to the person involved in the incident not being insured.

City Manager Gil also explained staff also filed a claim towards the insurance and depended if the driver had any active insurance, the claim could go through.

With regards to Item 13, Council Member Worthy asked if the Fireworks Committee was going to meet again.

City Manager Gil responded that the committee had not met but they had been having discussions with the legal fireworks sales representatives who would be giving a report sometime in June.

With regards to Item 13, Council Member Orozco asked about a letter from the fireworks applicants that had been submitted in the past, but didn’t see them in the packet.

Community Development Director Kinson Brown responded that the waiver request was included as part of the staff report in the agenda packet.

RESULT: APPROVED [UNANIMOUS] Consent Agenda Items 5-17
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco

REGULAR AGENDA

18. Update on the Development of a Traffic Calming Policy Staff Report: Public Works Director Dobbins presented the staff report.

Public Comment: Andrew Brown shared his dislike on the roads of Fifth Street and commented about the crossing light not working and the kids not looking over to cross the streets.

Alex Rodriguez asked if taking a video of the driver would help enforce the situation at Major Alta Street.

Council Discussion: Council Member Worthy inquired about the Safe Routes to School Project, if it was going to be completed soon, or if it was form part of this project.

Public Works Director Dobbins confirmed the Safe Routes to School Project was added to this current project.

City Manager Gil shared that this involved a policy and staff had applied for a radar and were waiting for a response. She also mentioned that the City was working with the Health Department regarding the roads.

Packet Pg. 23
Minutes Acceptance: Minutes of May 5, 2025 6:00 PM (CONSENT AGENDA)

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Council Member Worthy asked if the Safe Routes to School Project would be completed by next school year.

City Manager Gil confirmed the completion of the project by this year.

Mayor Pro Tem Silva noticed cars were rushing in the mornings on Alta Street and using the left turn lane as a passing lane. She hoped no accidents would happen by doing that and asked if there was anything to do for the cars not to use that lane as a passing lane without no incidents.

Public Works Director Dobbins mentioned that was an enforcement issue.

Mayor Pro Tem Silva suggested adding speed bumps to that area.

Council Member Orozco shared concerns the residents had mentioned to her b regarding Rincon Road and asked if the streets could be expanded.

Public Works Director Dobbins agreed on the expansion of the street and said staff would be reviewing plans.

Mayor Rios commented about hearing loud car noises from speeding cars near Day Street.

The Council received the report. No action required

GONZALES YOUTH COUNCIL UPDATES

19. Oral Communications
No Report.

BUSINESS FROM CITY COUNCIL

20. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
Mayor Rios reported on Measure X and Legislative updates on carbon credits; Vision Zero Program. Public Works Director Dobbins elaborated on that program which focused on zero pedestrian deaths; and said that two other Cities besides the City of Salinas were working on this program that was funded through TAMC, and staff was working on implementing the program here. He also announced a public meeting at the Police Department on May 14th at the Police Department from 5:30pm - 7:30pm, and the flyer was already posted. b. Mayor Selection Committee
Mayor Rios reported on the meeting held in the City of Soledad where they discussed a proposal from Senator Wiener from San Francisco and had the support from Senator Laird regarding transportation agencies and their properties. c. Salinas Valley Recycles
Mayor Pro Tem Silva announced the meeting next Thursday, May 15th at the Council Chambers at 6:00 pm.

21. Oral Communications
Council Member Worthy thanked the Fire Department for the help with an incident she had with her mother.

Packet Pg. 24
Minutes Acceptance: Minutes of May 5, 2025 6:00 PM (CONSENT AGENDA)

Page 6 of 7 ends

Mayor Pro Tem Silva mentioned the Ribbon Cutting for the High School’s Stadium had been postponed and would share new date when it is available. She also mentioned Memorial Day would be on May 26th, and she would be helping read the names of the Veterans.

Council Member Orozco thanked the Fire and Police Departments for helping on Day of the Child event. She also shared about the 5 de Mayo event, and thanked the Fire Chief Muscio for helping with the new route for the parade. She also mentioned that someone was hired to clean up the horse poop and they did it after the event was finished. She mentioned that she would be monitoring the concerns with the horses and their owners.

Mayor Rios shared his concerns about the stench in the City. He suggested for the residents to make a petition to the Monterey Air District.

Council Member Worthy asked if the Council Members could share this information with the residents.

City Attorney Rodiquez told the Council sharing information was fine.

Mayor Rios asked for a moment of silence in memory of Camila Camacho.

The Council and staff observed a moment of silence in her honor.

BUSINESS FROM CITY MANAGER

22. Oral Communications
City Manager Gil elaborated on the planning of the Ribbon Cutting Ceremony for the mural and informed the community was on track to get certified with Blue Zones, and will be updating. She also announced the opening of the Gonzales Youth Council applications for newcomers. She also mentioned the availability of purchasing pavers and interested individuals could go to City Hall for more information.

Public Works Director Dobbins reported on the RFP for signs for Fifth Street which would be done by the end of May; the street repair project to start sometime in November; and the roof repair for the Fire Department would start on May 19th by SSB Construction.

City Manager Gil informed that the County was considering funding for the Fire Department on May 13th at the Board of Supervisors meeting where they would be making their decision.

Mayor Rios suggested having the Ribbon Cutting Ceremony for the mural at 3:30pm so that residents could attend.

City Manager Gil shared that the mural was almost fully completed and the muralist would notify staff once completed so he could be present.

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

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

There was none.

Packet Pg. 25
Minutes Acceptance: Minutes of May 5, 2025 6:00 PM (CONSENT AGENDA)

Page 7 of 7 ends

23. The City Council will recess to closed session pursuant to Government Code Section 54956.8 to give instructions to the City’s negotiator concerning the exchange/lease/acquisition of property located at Assessor Parcel Number 020-041-016-000. Instructions will include price and terms of payment.

The Council met with its real property negotiator and discussed the exchange and/or sale of the identified property. No other reportable action was taken.

24. The City Council will recess to closed session pursuant to Government Code Section 54956.9(a) to confer with its Attorney regarding pending litigation which has been initiated formally and to which the City is a party: WC Claim of Juan Mendoza.

The Council conferred with legal counsel concerning the involved WC Claims and provided direction concerning the same. No final action was taken. No other reportable action was taken.

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

The Council conferred with legal counsel concerning the involved litigation and provided direction concerning the same. No other reportable action was taken.

ADJOURNMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Lorraine Worthy, Council Member
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Maria Orozco The meeting was adjourned at 8:03 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 26
Minutes Acceptance: Minutes of May 5, 2025 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
Packet Pg. 27
Attachment: Warrants #51977-52046 (3257 : Approve City Accounts Payable Warrants #51977-52046) 9 Packet Pg. 28
Attachment: Warrants #51977-52046 (3257 : Approve City Accounts Payable Warrants #51977-52046) Packet Pg. 29
Attachment: Warrants #51977-52046 (3257 : Approve City Accounts Payable Warrants #51977-52046) Packet Pg. 30
Attachment: Warrants #51977-52046 (3257 : Approve City Accounts Payable Warrants #51977-52046) Packet Pg. 31
Attachment: Warrants #51977-52046 (3257 : Approve City Accounts Payable Warrants #51977-52046) Packet Pg. 32
Attachment: Warrants #51977-52046 (3257 : Approve City Accounts Payable Warrants #51977-52046) AGENDA
ITEM
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 April was another exciting month for the City of Gonzales. We held the 3rd Annual Show & Shine Car Show on April 5th. The Car Show has become one of our largest events, called for by the community year after year. This year, we had over 170 cars participate. The weather and music were great, and everyone got to enjoy themselves. We would like to THANK Street Life and Gonzales Customs for their support in making it a huge success! Gonzales Customs went over the top and donated raffle prizes that were a total hit. We appreciate their leadership and love for the community of Gonzales.

Gonzales Police Department
The Gonzales Police Department received the Lexipol Connect Gold 2024 recognition. The Lexipol Connect Program is a unique initiative aimed at helping safety organizations achieve excellence in managing critical areas of operation such as policy, training and wellness. Congratulations to the Gonzales Police Department for receiving this recognition.

The Gonzales Police Department has also been busy working with the Monterey County Health Department on various community activities, including conducting community presentations regarding pedestrian and driver safety, as well as giving out helmets to ensure bike riders are adhering to helmet requirement laws.

City of Gonzales
City Manager Report
April 2025
June 2023
Packet Pg. 33
Attachment: City Manager Report - April 2025 (3256 : City Manager's Report - April 2025) 10 Join them and Officer Perez as he leads the 2025 Torch Run in Gonzales on Wednesday, June 25, 2025. To register or to make a donation, scan the bar code below.

Dennis and Janice Caprara Community Center Complex
The deadline to purchase your brick has been extended to May 30th. Be sure to scan the code to your right to register and make your payment.

For questions call us at 831-675-5000.

Save the Date
Youth Summer Camp Registration begins May 9th.

Mural Unveiling May 22nd at 4:00PM – Fourth and Belden
Streets.

South County Youth Summit May 24th– Greenfield High
School.

Come Work With Us
The City is currently hiring for the following positions:
• Development Services Technician/Administrative Analyst • Police Officer
For more information, visit the City of Gonzales website www.gonzalesca.gov under Job Opportunities.

Packet Pg. 34
Attachment: City Manager Report - April 2025 (3256 : City Manager's Report - April 2025) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Activity Report

ECONOMIC DEVELOPMENT
The building permit for the 59-foot tall digital billboard has been issued. We will soon forecast a date for groundbreaking activities.

HOUSING
Vista Lucia Specific Plan. The applicant and staff are conferring on a few matters before scheduling the final review with the City Council.
6 th Cycle Housing Element. Following more internal discussion with our City Attorney, a public hearing notice will be prepared for the Planning Commission to consider a Housing Element recommendation to the City Council.

The revised Puente del Monte Specific Plan was submitted on April 7, 2025. Under separate cover in this agenda is a request for City Council action affirming a Reimbursement Agreement with Jackson Family Investments and a Consulting Services Agreement with Slama Consulting.

Puente Del Monte is a 501-acre planned community intended to provide existing and future residents of Gonzales with a fresh and engaging place to live and play. With numerous open spaces and parks, a focus on pedestrian connectivity, a mix of uses, and a diverse range of housing, this new community takes a comprehensive approach to development with consideration for quality of life. This includes housing homes that can accommodate various household compositions, recreation and exercise, outdoor living, walkability, education, social interaction, and local conveniences. It will offer a range of housing types, two school locations, open space, light industrial and mixed-use opportunities.

AGENDA
ITEM
11 Packet Pg. 35

BUILDING DIVISION ACTIVITY
From April 1, 2025, through April 30, 2025 (30 reporting days), the City issued 22 permits for four ADUs, six re-roofs, a commercial electrical panel upgrade, electrical work associated with solar installations, a plumbing permit, a remodel, and the City issued the building permit for the 59-foot tall digital billboard to be constructed on City property near the winery as seen from Hwy 101. The estimated value of improvements was $1,285,960.31.

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City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Community Engagement & Recreation Departments Activity Reports Current Events
Kid Power
• Kid Power after school for April had a total of 30 children registered. We continue to work on getting them ready for state testing and making sure they end the year strong and at grade level. • In April, we had a weeklong camp, where we had 18 campers. We were able to enjoy the garden where we went and picked flowers but also did some cleanup and weed picking. The Fire Department came and talked to us about safety and was able to show us the jaws of life, their truck, and even raced each other to see who could get dressed in their gear the fastest.

AGENDA
ITEM
12 Packet Pg. 37
• The day before spring break, we had a big Easter egg hunt. The kids enjoyed every minute of hunting for eggs as the staff challenged them by hiding them and some fun places on the playground. Also, we made a trip to the garden where we got flowers, and we crashed them and turned the petals into paint and painted them.

City Sports League
• Our South County Girls softball league started on February 11th. We have a total of three divisions which consist of 7U, 10U and 14U. We have a total of 49 participants. Our 7U team has a team of 9. We have a large 10U team which has 16 participants. And this year we have two 14U teams. Each team has 12 participants. We have a total of 11 coaches. Our south county league is in collaboration with Soledad, Greenfield and King City. Our season ends on May 17th. Closing Ceremony will take place on May 23rd.
• During our girls’ softball season in collaboration with Gonzales High School, we were able to have high school seniors come out and assist coaches with practices and games. This will look very well on their college applications and work resumes. • Our Gonzales Mini T-ball league ages 2 ½ -4 started on April 5, 2025. We have a total of 34 participants and 4 teams. We have 11 volunteers between coaches and team parents. Our season will end on May 17th. Medals and certificates will be passed out to the kids on May 17th after their game.

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Recreation/ Community Engagement
• The Recreation and Community Engagement Department hosted the annual Car Show on Saturday April 5th, in collaboration with Gonzales Customs and Street Life Car Club. The event had a total of 176 cars registered, 18 food and non-food vendors, and awarded 20 Judges Choice plaque recognition to registered participants. Overall, we heard positive feedback from the community and look forward to hosting another event next year! • For the month of April, we held a total of 4 Chair Yoga Classes, 2 art classes and 1 cooking demo in partnership with Alliance on Aging and the Monterey County Health Department. The Senior classes are scheduled to end at the end of June 2025; however, the city continues to collaborate with the Monterey County Health Department to seek additional funding opportunities. • The Recreation and Community Engagement Department is collaborating again with Health Career Connect (HCC) to bring on a student summer intern. The intern is paid through the HCC Program and will intern with the City of Gonzales for an estimated 8-10 weeks. • On April 24th, we met with the Blue Zones Project lead to discuss the approval process for a worksite certification.

Gonzales Youth Council
• Advisors met to begin planning for what the summer fellowship would look like this year and discussed the application process for youth interested in joining the Gonzales Youth Council. We have opened the application process and have made them due at the end of May. • Students and advisors participated in a total of 5 South County Youth Summit Planning meetings which were hosted, both via zoom and in person.
• On April 3rd, the Gonzales Youth Commissioners hosted an Adulting 101 for the Gonzales Youth Council Members. This was part of their Adulting 101 Action project which was made into a short series. Previously, we hosted a leadership lab which included an overview of what a resume is and a mock interview process. During this Adulting 101 event, the focus was on budgeting, Packet Pg. 39
Credit Card/ Credit Score overview and a summarized overview of average costs for Car maintenance, apartment/ house maintenance.

Activities in the Planning Phase
• We have started the recruitment process for Summer Aquatics Staff and have designated Wednesday May 7th and May 8th as interview dates.
• We are also anticipating the opening of Pool Party Reservation for the weekend of June 7th and 8 th, with some of the programming beginning on June 10th .
• The South County Youth Summit is scheduled to take place on Saturday, May24th with special guest speaker, Cynthia Moreno, Press Secretary of the Assembly for Robert Rivas. The summit will also include a Resource Fair and multiple workshops.

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City of Gonzales

FIRE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, City Manager
SUBJECT: Fire Department Activity Report

RESPONSES
There were 61 calls for service during the month of April, bringing the year to date total calls to 268.

There was 1 vehicle fire, 1 vegetation fire, 33 EMS calls, 2 hazardous materials incidents, 7 service calls, 7 false alarms, and 10 calls cancelled in route. Mutual aid was requested once during the month, and mutual aid was provided once.

STAFFING
Recruitment for the vacant Firefighter position has begun and will close on May 7th. Our two new Volunteer Firefighters have completed initial training and have begun working shifts. Both are also interested in and have applied for the Full-time position.

TRAINING
Crews trained on various wild land fire safety practices and control techniques in preparation for summer.

Training was also conducted with our auto aid partners on water supply operations. Crews also conducted ladder training and hose line operation scenarios.

EQUIPMENT
All apparatus are currently in service. There are repairs pending for Water Tender 8141.

PREVENTION
Regular business inspections were conducted as well as a fire sprinkler final inspection for a new ADU.

AGENDA
ITEM
13 Packet Pg. 41
Crews also visited the Vosti Center during spring camp and gave a presentation on fire safety to the kids.

GRANTS
A letter of interest was submitted to the Leary Firefighters Foundation for potential grant funding.

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City of Gonzales

POLICE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: April 2025 Activity Report
Crime and Arrests
The Gonzales Police Department investigated 4 Part I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of April 2025. During the same time last year, there were 6 Part I Crimes investigated.

During the month of April 2025, Officers made 10 arrests. During the same time last year, there were a total of 12 arrests.

During the month of April 2025, the Department initiated 1 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 556 calls for service in April 2025. There were 35 crimes, accidents, and information reports taken during the month.

Animal Control
During the month of April 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 0 2 1 0 0 0
Dogs 3 0 0 0 3 0
Total = 3 2 1 0 3 0
AGENDA
ITEM
14 Packet Pg. 43

Significant Cases
Although the Police Department responded to 556 calls for service during the month of April 2025, the most significant cases involved 4 Part I crimes. 0- Homicide 0 – Rape - 0, - Robbery, 4 -Assault, 0 - Burglary, 0 -Larcenies, and 0 -Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

April 1 - 3, 2025, Officer Pruneda attended a 24-hour course designed to meet the required update for Field Training Officers at the Hanford Educational Center in Hanford, CA.

On April 8th and April 11th, 2025, Officers completed their bi-annual Range certification and training.

Other
On April 5, 2025, the Department was a part of City of Gonzales 3rd annual Car Show.

On April 8, 2025, the Department received the Outstanding Disability Employer Award from Social Vocational Services in collaboration with Employ America, for demonstrating positive outcomes in recruiting, hiring, retaining and advancing people with disabilities in the workforce.

On April 17, 2025, Sergeant Melgoza attended a TAMC Safety Taskforce meeting in Greenfield, CA.

On April 23, 2025, the Monterey County Health Department successfully completed the annual Police Department holding cell inspection.

Police Officers and Explorers attended and participated at the Day of the Child event hosted by the City of Gonzales at Central Park on April 27, 2025.

Officer Perez presented on the importance of Alcohol Awareness at Gonzales High School on April 29, 2025.

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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Activity Report

WASTEWATER

1. Industrial Wastewater Pipeline – Construction of the IW Pipeline began on 11/04/2024 and is approximately 80% complete with final completion expected by 5/30/2025.

2. Industrial Wastewater Treatment Facility - The IW Treatment Facility contract was issued for public bid on 1/15/2025 and six bids were opened on 2/26/2025. As reported at the 3/17/2025 Council meeting, the submitted bids exceeded the project budget, so staff has requested a $6M Amendment to the $29M State Revolving Fund loan for the IW System. Staff will recommend an Award of Contract to Gateway Pacific Contractors (low bidder) at the 5/19/2025 Council meeting with issuance of the Notice to Process after SRF approval of the $6M Amendment.

3. Wastewater Treatment Plant (WWTP) – City staff provides Regional Board staff with updates on the operations and maintenance efforts at the WWTP and our progress on constructing the IW System.

Staff are meeting with the Regional Board regulator on 4/15/2025.

BUILDINGS

1. Fire Station Roof – On 5/19/2025 SSB Construction will repair the Fire Station roof. Over the last two weeks City PW and Fire staff removed the BBQ pit and exhaust stack so the opening in the roof can be covered with plywood and an underlayment prior to the roof work. Funding for this $24,000 project is from the County thanks to Supervisor Chris Lopez.

AGENDA
ITEM
15 Packet Pg. 45

2. Community Center Complex Project – The project is on schedule to be completed by December 1, 2025. The construction team will provide an update at the 5/19/2025 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

STREETS

1. Fourth Street Pavement Rehab – Staff authorized Harris Assoc to prepare the construction documents to reconstruct the 100 Block of Fourth Street and the 400 block of Alta Minor. A Kick-off meeting and site walk were held on 5/6/2025. Funding is $636,150 in SB 1 funding.

2. TAMC Safe Routes to School Program - Staff engaged TL Engineering to design the Pedestrian Safety Improvements along Fifth Street from the Southbound Highway 101 on/off ramps. A site walk was held on 5/05/2025. Funding is a $250,000 RSTP grant from the TAMC.

3. Fifth Street Truck Ban – Staff will issue the traffic signs for the truck ban for public bid by May 30.

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.

On 4/28/2025 CalRecycle’s Jurisdiction and Agency Compliance and Enforcement Branch (JACE) emailed a letter to staff that the three cities would audit the City’s compliance with the following programs:
• Mandatory Commercial Organics Recycling (MORe) program (Public Resources Code (PRC) sections 42649.8 through 42649.87)
• Mandatory Commercial Recycling (MCR) program (PRC sections 42649 through 42649.7 and 14 CCR sections 18835 through 18839)
• Source Reduction and Recycling Element (SRRE) program (PRC Section 41000 or PRC Section 41300)
• Household Hazardous Waste Element (HHWE) program (PRC Section 41500 or PRC Section 41510)
Salinas Valley Solid Waste Authority staff are supporting the City’s response to CalRecycle’s audit.

OTHER PROJECTS

1. Emergency Preparedness – The PW Director and PW Supervisor meet monthly with Fire Chief Muscio and Police staff to discuss Emergency Preparedness. Topics include tabletop exercises, emergency notifications to residents and outfitting the Emergency Operations Center. The city’s Emergency Operation Center (EOC) is being set up in the space in the Old Medical Building in the space recently vacated by Sun Street Centers.

2. Geographic Information System (GIS) – City staff continues to work on the city’s GIS mapping system by inputting field data for water, sewer and storm drainage systems. Staff hold monthly meetings with ProWest (GIS consultant) to seek their assistance with our mapping efforts. Other mapping efforts include assessing sidewalks to map uplifted or missing sidewalk panels and performing a street sign inspection.

Packet Pg. 46

PUBLIC WORKS OPERATIONS AND MAINTENANCE

WASTEWATER
Staff check the influent and effluent, run daily inspections and testing of Dissolved Oxygen levels, pH, and conductivity at the wastewater treatment plant on a daily basis.

The disposal ponds are still fairly full. Hot weather will help get rid of the treated water. Staff are trying to balance discharging water to the discharge ponds.

The existing PW trash pump to move treated water between the three disposal beds is 25 years old and was recently repaired for use at the WWTP. But the pump is undersized for its use and needs to be replaced. Staff currently rent a pump from Rain for Rent. Staff are getting quotes to buy a new pump.

Staff repaired two aerators at the WWTP.

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 April, all water samples taken at the sampling stations for the water system tested negative for coliform.

Staff addressed one water leak this month.

There were 77 door tags this month, prior to shuts off. We had 14 disconnects as a result of non-payment.

PARKS
Staff mows turf areas in the City parks regularly. Staff cleans restrooms, cleans trash, and make repairs in parks. Staff repair and maintain irrigation in Central and Centennial Park.

Staff repaired the Meyer Park sign.

Packet Pg. 47
Staff are getting the pool ready for the upcoming swim season. The pool is balanced, and cleaning is almost finished. Staff are preparing for the upcoming County inspection.

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 were called out after hours to clean up after a Semi Tractor Trailer vs. Stop light accident at Alta Street/Gonzales River Road. Staff cleaned up the diesel spill after the accident and provided stop signs until the traffic light could be re-installed.

Staff repaired and replaced street signs that were damaged and/or knocked over.

Precision Concrete Cutting was onsite to shave off trip hazards on sidewalks. They completed Phase 4 of the long-term project.

Staff inspected the trenching and road repair done by a PG&E contractor on Alta Minor in front of Farmers Market.

EVENTS
Staff supported the Car Show in early April.

Staff prepped and provided assistance to Blue Zones and CADRE at the Community Garden.

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City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-19 Reimbursement Agreement with Jackson Family Investments and Resolution No. 2025-27 Consulting Services Agreement with Brent Slama Consulting

RECOMMENDATION
It is recommended that the City Council Adopt:

1. Resolution No. 2025-19, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Sign a Reimbursement Agreement Between the City of Gonzales and Jackson Family Investments for the Revised Puente Del Monte Specific Plan, and Annexation Proposal Submitted to the City of Gonzales, April 7, 2025; and

2. Resolution No. 2025-27, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Sign a Consulting Services Agreement Between the City of Gonzales and Brent Slama Consulting to Provide Project Management and Planning Product Production for the Revised Puente Del Monte Specific Plan, and Annexation Proposal Submitted to the City of Gonzales, April 7, 2025

BACKGROUND
On April 7, 2025, Jackson Family Investments (JFI) submitted a revised proposal for their 501-acre Puente Del Monte Specific Plan Project, proposed adjacent to Gloria and Iverson Roads.

AGENDA
ITEM
16 Packet Pg. 49
From the Introduction of the revised Puente Del Monte Specific Plan:

Puente Del Monte is a 501-acre planned community, envisioned to provide existing and future residents of Gonzales with a fresh and engaging place to live and play.

With numerous open spaces and parks, a focus on pedestrian connectivity, a mix of uses, and a diverse range of housing, this new community takes a comprehensive approach to development with consideration for quality of life. This includes housing choice, market demand, homes that can accommodate various household compositions, recreation and exercise, outdoor living, walkability, education, social interaction, and local conveniences.

Puente Del Monte is being implemented through a Specific Plan. The Specific Plan is a planning document that guides development of a new community for the City of Gonzales. It will offer a range of housing types, two school locations, vast open space, light industrial and mixed-use opportunities.

REVIEW AND ANALYSIS
Reimbursement Agreement with Jackson Family Investments This Reimbursement Agreement (Exhibit 1 to Resolution No. 2025-19) is standard for the City to undertake the necessary work, studies and development review processes that will be needed. The reimbursement agreement template is current and has previously been reviewed by the City Attorney. The draft Reimbursement Agreement has been signed by representatives of Jackson Family Investments.

Packet Pg. 50
The agreement provides for the City to be reimbursed for all City and consultant development review activities that will be performed to implement the Puente Del Monte Specific Plan and Annexation Proposal. Specifically, as identified under Section 1 of the Agreement, Jackson Family Investments will reimburse the City for the costs for:
(a) The review of project applications, plans and reports, and documents for the Puente Del Monte Specific Plan project submitted April 7, 2025, and Annexation Proposal; (b) The preparation and review of reports and documents for use by the City, or other entities with jurisdiction over the project development or property area, such as, but not limited to, the independent reports and studies that serve as foundations to environmental review documentation as required under the California Environmental Quality Act (CEQA); (c) The use of outside consultants when deemed necessary by City for the preparation of specialized project-related studies and reports, staff reports and/or general assistance. Notwithstanding the foregoing, prior to the City retaining the services of outside consultants for the purpose of preparing specialized project-related studies and reports, City shall provide JFI with an itemized written proposal from the outside consultant which includes the proposed cost to perform the services identified therein. JFI shall have the right to review and comment upon all such proposals, and the City shall take such comments into consideration before entering into any agreement for the desired service; and
(d) Working with JFI, and their agents, to do all things reasonable and necessary to facilitate and obtain required governmental approvals necessary for JFI to entitle the project area and complete annexation into the corporate limits of the City, in accordance with the Puente Del Monte Project proposal on the JFI property. (A tentative subdivision map, or physical on-the-ground development proposal has not been presented at this time (May 2025). (e) Public noticing including required publications in newspapers; (f) The administrative costs of processing consultant invoices and record keeping at rates and markups consistent with the City’s adopted Fee Schedule as may be updated from time to time.

Consultant Services Agreement.

The Consultant Services Agreement format is standard for the City for projects where City development review services need to be supplemented on a project specific or task-specific endeavor. In this case, consultant services are deemed necessary for processing the revised and resubmitted Puente Del Monte Specific Plan. Brent Slama Consulting prepared a Scope of Services/Scope of Work and a Budget that has been vetted with Jackson Family Investments who have expressed their willingness to pay for these supplemental City of Gonzales staff services (Exhibit 1 to Resolution No. 2025-27).

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: While ministerial in nature, reimbursement agreements and consulting services agreements support the Vision because they allow the City to process important development projects in a revenue neutral capacity (without burden to the budget) that can bring the housing, jobs and economic development necessary to further the Vision.

Explain how the Recommendation Directly Implements the Mission Packet Pg. 51
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.

Explain: Please see the Vision above.

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

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

ALTERNATIVES
The Council could opt not to approve the Reimbursement Agreement and the separate Consulting Services Agreement, yet this would preclude efficient cost recovery and project management for a largescale local housing and mixed uses project for the community. City staff would potentially be unable to absorb the additional workload associated with processing such an involved project.

FISCAL IMPACT
There is no budget impact associated with the Reimbursement Agreement. The costs to the City to process this project are unknown at this time but a $500,000 cap has been written into the Reimbursement Agreement. An initial development review deposit of $30,000, was deposited April 7, 2025. The Reimbursement Agreement specifies that invoices will be processed by the City monthly to ensure cost recovery from JFI for all City and consultant services as the project proceeds.

CONCLUSION
It is recommended that the City Council Adopt:

1. Resolution No. 2025-19 with Jackson Family Investments Reimbursement Agreement

2. Resolution No. 2025-27 with Brent Slama Consulting Agreement Packet Pg. 53
RESOLUTION NO. 2025-19

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES AUTHORIZING

THE CITY MANAGER TO SIGN A REIMBURSEMENT AGREEMENT BETWEEN THE CITY

OF GONZALES AND JACKSON FAMILY INVESTMENTS FOR THE REVISED PUENTE DEL

MONTE SPECIFIC PLAN, AND ANNEXATION PROPOSAL SUBMITTED TO THE CITY OF GONZALES, APRIL 7, 2025
WHEREAS, City staff and Jackson Family Investments have worked together for years under previous agreements and studies, that will benefit the processing of this revised specific plan and annexation proposal received April 7, 2025; and
WHEREAS, earlier efforts to present the Puente del Monte Specific Plan by Jackson Family Investments included a larger project area that included land areas under the ownership of the Rianda Family Limited Partnership; and
WHEREAS, the Rianda Family Limited Partnership separated from the Puente Deal Monte Specific Plan effort to pursue the development review and annexation of approximately 45 acres into the City of Gonzales to enable the construction of an agricultural processing facility, and was successful in that endeavor in 2023; and
WHEREAS, following the success of the Rianda Family Limited Partnerships annexation of approximate 45 acres into the City of Gonzales, Jackson Family Investments revisited their Puente Del Monte Specific Plan design and are now ready to process a revised specific plan proposal that is adjacent to the newly annexed 45 acres intended for the Rianda Agricultural Cooler; and WHEREAS, on April 7, 2025, Jackson Family Investments approached the City with a revised Puente Del Monte Specific Plan Proposal and Annexing Proposal within a portion of their Gloria Road area properties within the City of Gonzales Sphere of Influence (SOI); and WHEREAS, on May 19, 2025, the City Council considered a Reimbursement Agreement between the City of Gonzales and Jackson Family Investments to authorize the City Manager to sign the agreement; and
NOW THEREFORE, BE IT RESOLVED that the City Manager is authorized to sign a Reimbursement Agreement between the City of Gonzales and Jackson Family Investments (Exhibit 1 to this Resolution No. 2025-19), for the revised Puente Del Monte Specific Plan and Annexation Proposal submitted to the City of Gonzales, April 7, 2025.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 19th day of May 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose Rios, The Honorable Mayor
ATTEST:
__________________________
Mary Villegas, Deputy City Clerk
Packet Pg. 54
Attachment: Resolution No. 2025-19 with Jackson Family Investments Reimbursement Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt EXHIBIT 1
Packet Pg. 55
Attachment: Resolution No. 2025-19 with Jackson Family Investments Reimbursement Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt Packet Pg. 56
Attachment: Resolution No. 2025-19 with Jackson Family Investments Reimbursement Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt Packet Pg. 57
Attachment: Resolution No. 2025-19 with Jackson Family Investments Reimbursement Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt Packet Pg. 58
Attachment: Resolution No. 2025-19 with Jackson Family Investments Reimbursement Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt Packet Pg. 59
Attachment: Resolution No. 2025-19 with Jackson Family Investments Reimbursement Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt RESOLUTION NO. 2025-27

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES AUTHORIZING

THE CITY MANAGER TO SIGN A CONSULTING SERVICES AGREEMENT BETWEEN THE

CITY OF GONZALES AND BRENT SLAMA CONSULTING TO PROVIDE PROJECT

MANAGEMENT AND PLANNING PRODUCT PRODUCTION FOR THE REVISED PUENTE

DEL MONTE SPECIFIC PLAN AND ANNEXATION PROPOSAL SUBMITTED TO THE CITY OF GONZALES, APRIL 7, 2025
WHEREAS, City staff and Jackson Family Investments have worked together for years under previous agreements and studies, that will benefit the processing of this revised specific plan and annexation proposal received April 7, 2025; and
WHEREAS, earlier efforts to present the Puente del Monte Specific Plan by Jackson Family Investments included a larger project area that included land areas under the ownership of the Rianda Family Limited Partnership; and
WHEREAS, the Rianda Family Limited Partnership separated from the Puente Deal Monte Specific Plan effort to pursue the development review and annexation of approximately 45 acres into the City of Gonzales to enable the construction of an agricultural processing facility, and was successful in that endeavor in 2023; and
WHEREAS, following the success of the Rianda Family Limited Partnerships annexation of approximate 45 acres into the City of Gonzales, Jackson Family Investments revisited their Puente Del Monte Specific Plan design and are now ready to process a revised specific plan proposal that is adjacent to the newly annexed 45 acres intended for the Rianda Agricultural Cooler; and WHEREAS, on April 7, 2025, Jackson Family Investments approached the City with a revised Puente Del Monte Specific Plan Proposal and Annexing Proposal within a portion of their Gloria Road area properties within the City of Gonzales Sphere of Influence (SOI); and WHEREAS, on May 19, 2025, the City Council considered a Consulting Services Agreement between the City of Gonzales and Brent Slama Consulting to authorize the City Manager to sign the agreement.

NOW THEREFORE, BE IT RESOLVED that the City Manager is authorized to sign a Consultant Services Agreement between the City of Gonzales and Brent Slama Consulting (Exhibit 1 to this Resolution No. 2025-27) to provide project management and planning product production for the revised Puente Del Monte Specific Plan and Annexation Proposal submitted to the City of Gonzales, April 7, 2025.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 19th day of May 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose Rios, The Honorable Mayor
ATTEST:
__________________________
Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between the [MAY 19, 2025] City of Gonzales and Brent Slama Consulting Page 1 of 13

CONSULTING SERVICES AGREEMENT BETWEEN

THE CITY OF GONZALES AND BRENT SLAMA CONSULTING
THIS AGREEMENT for consulting services is made by and between the City of Gonzales ("City") and Brent Slama Consulting ("Consultant") (together sometimes referred to as the "Parties") as of May 19, 2025.

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

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end within three years following the Effective Date, and Consultant shall complete the work described in Exhibit A on or before that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as referenced in Section 8.

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

1.3 Assignment of Personnel. The sole proprietor of Brent Slama Consulting is Brent Slama.

No substitutions of staff will be made to this agreement.

1.4 Time. Mr. Slama will commit to 16 hours a week to the City of Gonzales for the length of the agreement, with a schedule to be determined in consultation with City staff and modifications as needed to be based on key meeting dates, project milestones, project deliverables, office space, City needs, City holidays and consultant vacations.

Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed a rate of $195 per hour for all services provided through December 31, 2025, with an updated rate of $205 per hour commencing January 1, 2026, notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement.

In the event of a conflict between this Agreement and Consultant's proposal, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person.

EXHIBIT 1
Packet Pg. 61
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between the [MAY 19, 2025] City of Gonzales and Brent Slama Consulting Page 2 of 13 Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant's estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:
 Serial identifications of invoices; i.e., Invoice No. 1 for the first invoice, etc.;  The beginning and ending dates of the billing period;  A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
 A copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and any reimbursable expense;
 The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder;
 Consultant shall give separate notice to the City when the total number of hours worked by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours within a 12-month period under this Agreement and any other agreement between Consultant and City. Such notice shall include an estimate of the time necessary to complete work described in Exhibit A and the estimate of time necessary to complete work under any other agreement between Consultant and City, if applicable.

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

2.3 <<Not Used>>

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

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, Packet Pg. 62
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between the [MAY 19, 2025] City of Gonzales and Brent Slama Consulting Page 3 of 13 unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.

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

2.6 Reimbursable Expenses. There are no additional costs for travel, meals and lodging associated with this agreement. In accordance with Exhibit A there are no reimbursable expenses contemplated in this agreement.

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

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

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

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

Section 4. INSURANCE REQUIREMENTS. Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors.

Consistent with the following provisions, Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to the City.

Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence that such insurance is in effect to City.

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

4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all people employed directly or indirectly by Consultant. The Statutory Workers' Compensation Insurance and Employer's Liability Insurance shall be provided with limits of Packet Pg. 63
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between the [MAY 19, 2025] City of Gonzales and Brent Slama Consulting Page 4 of 13 not less than $2,000,000 per accident. In the alternative, Consultant may rely on a selfinsurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or the Consultant, if a program of self-insurance is provided, shall waive all rights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement.

4.2 Commercial General and Automobile Liability Insurance.

4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than $2,000,000 per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles.

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

4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. The Insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
b. City, its officers, officials, employees, and volunteers are to be covered as insureds as respects: liability arising out of work or operations performed by or on behalf of the Consultant; or automobiles owned, leased, hired, or borrowed by the Consultant.
c. For any claims related to this Agreement or the work hereunder, the Consultant's insurance covered shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance Packet Pg. 64
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between the [MAY 19, 2025] City of Gonzales and Brent Slama Consulting Page 5 of 13 or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days' prior written notice has been provided to the City.

4.3 Professional Liability Insurance.

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

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

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

4.4 All Policies Requirements.

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

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4.4.2 Verification of coverage. Prior to beginning any work under this Agreement, Consultant shall furnish City with complete copies of all policies delivered to Consultant by the insurer, including complete copies of all endorsements attached to those policies. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. If the City does not receive the required insurance documents prior to the Consultant beginning work, it shall not waive the Consultant's obligation to provide them. The City reserves the right to require complete copies of all required insurance policies at any time.

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

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

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

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

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

4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant's breach:
 Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
Packet Pg. 66
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between the [MAY 19, 2025] City of Gonzales and Brent Slama Consulting Page 7 of 13  Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or  Terminate this Agreement.

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

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

Notwithstanding the foregoing, to the extent this Agreement is a "construction contract" as defined by California Civil Code section 2783, as may be amended from time to time, such duties of Consultant to indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782.

Section 6. STATUS OF CONSULTANT.

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

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

Section 7. LEGAL REQUIREMENTS.

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

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

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

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

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

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

Section 8. TERMINATION AND MODIFICATION.

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

Packet Pg. 68
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In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.

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

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

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

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

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

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

8.6.1 Immediately terminate the Agreement;

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

8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or
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8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant's Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement.

It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

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

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

Section 10 MISCELLANEOUS PROVISIONS.

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

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

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

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

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

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

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

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

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

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

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

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10.9 Contract Administration. This Agreement shall be administered by Taven Kinson Broen, Community Development Director ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee.

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

Brent Slama Consulting
220 Alves Lane
Greenfield, CA 93927
.

Any written notice to City shall be sent to:

Carmen Gil, City Manager
City of Gonzales
P.O. Box 647
Gonzales, CA 93926

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

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

Exhibit A Scope of Services and Hourly Rate

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

10.14 Non-Responsibility for General Contractor Responsibilities and Duties. Unless otherwise agreed by City and Consultant in writing, nothing in Consultant's services shall be construed to mean that Consultant assumes any of the contractual responsibilities or Packet Pg. 72
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between the [MAY 19, 2025] City of Gonzales and Brent Slama Consulting Page 13 of 13 duties of the general contractor. The general contractor is solely responsible for construction means, methods, sequences and procedures used in the construction of a project and for related performance in accordance with its contract with the City. The general contractor shall not be relieved of its responsibility for the safety of the workplace or for the method or manner of construction. The Consultant and its personnel have no authority to exercise any control over or charge of acts or omissions of the general contractor or their employees in connection with the construction work.

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

CITY OF GONZALES BRENT SLAMA CONSULTING
Carmen Gil, City Manager Brent Slama, Owner/Principal
Attest:

Mary Villegas, Deputy City Clerk
Approved as to Form:

Michael F. Rodriquez, City Attorney
Packet Pg. 73
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between [MAY 19, 2025]
City of Gonzales and Brent Slama Consulting Page 1 of 2

EXHIBIT A

SCOPE OF SERVICES AND HOURLY RATE
Itemized Costs for Components of Scope of Work /Scope of Services The project specifically identified in this Request, the Puente Del Monte Specific Plan and Annexation is anticipated to shortly be in review by the City of Gonzales, and funding is subject to payment to a project-specific Reimbursement Agreement with the developer. The project has been delayed for over three years and will need to be revised in light of the Rianda Cooler Annexation project being approved by the City. Slama Consulting believes the Scope of Work to be quite substantial and will take well between 18-30 months, depending upon numerous external factors. Completion of these tasks will require multiple significant steps including completion of the Puente del Monte Specific Plans, completion of CEQA Review, entitlement approval by the City, Plans for Services, application to LAFCO and ultimate LAFCO approval of the annexations. Within these steps are numerous engineering studies and assessments, financial feasibility studies, Development Agreements and other significant documents that must be completed and are in various stages and are dependent upon cooperation with the City and development team(s). While there may be certain time and operational efficiencies as a result of the City recently processing the Vista Lucia project, the time commitment for this project will still be significant. Should a specific itemized scope of work for consultant processing costs be requested by the City this may be done after an initial and thorough consultant assessment of the anticipated submittal of the project; however, given the overall complexity of the project it is assumed that the scope of work is subject to significant revision given the many changes that occur over the lengthy lifetime of such large projects.

Hourly Rate
All services provided under this agreement would be provided directly by Brent Slama, AICP, Owner and Principal of Slama Consulting at a rate of $195 per hour for all services provided through the current agreement expiring December 31, 2025. In order to complete the scope of work for the Puente Del Monte project, I am proposing a two-year extension of the general agreement between Slama Consulting and the City of Gonzales, with an updated rate of $205 per hour commencing January 1, 2026. It is anticipated that the overall level of effort for this project at this time through LAFCo approval will not exceed $200,000. The length of the agreement and not-to-exceed amount will be determined by the City upon consultation with Mr. Slama. No substitutions of staff will be made to this agreement.

As per previous arrangements with the City, Mr. Slama will commit to 16 hours a week to the City of Gonzales for the length of the agreement, with a schedule to be determined in consultation with City staff and modifications as needed to be based on key meeting dates, project milestones, project deliverables, office space, City needs, City holidays and consultant vacations.

Costs for Travel, Meals and Lodging
As a South County firm, there are no additional costs for travel, meals and lodging associated with this agreement. In addition, there are no reimbursable expenses contemplated in this agreement.

Packet Pg. 74
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & Consulting Services Agreement between [MAY 19, 2025]
City of Gonzales and Brent Slama Consulting Page 2 of 2 Additional items outside of Scope of Work /Scope of Services Assumptions/Limitations
Slama Consulting will be working under the direction of the City of Gonzales and will provide complex project management services as directed by City staff.

Slama Consulting recognizes that this contract work is subject to reimbursement agreement(s) between the City and Applicant(s), and it is assumed that funds exist to perform the work envisioned in the agreement.

This agreement is highly dependent upon the applicant(s) to provide accurate and timely information and documents to the City in order to move projects forward. Unless otherwise directed by the City, this includes but is not limited to all plans, maps, legal documents and technical reports necessary to process the application.

Slama Consulting recognizes that work required under the California Environmental Quality Act (CEQA) is being completed by the City of Gonzales as the lead agency under contract with a separate firm and Slama Consulting will work and coordinate with that firm as necessary throughout the duration of the projects.

Packet Pg. 75
Attachment: Resolution No. 2025-27 with Brent Slama Consulting Agreement (3249 : Resolution No. 2025-19 Reimb. Agrmt W/Jackson Fam & City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-20 Reappointment of Planning Commissioners Gloria Velasquez, Tencia Vargas, and Adrian Paco

RECOMMENDATION
It is recommended that the City Council Adopt Resolution No. 2025-20, A Resolution of the City Council of the City of Gonzales approving the reappointment of Gloria Velasquez, Tencia Vargas and Adrian Paco to the Gonzales Planning Commission and setting the term of the commissioners to expire four (4) years from their current term ending date.

BACKGROUND
The terms of three current Planning Commissioners expired on April 3, 2025, and May 3, 2025. Chapter

12.04 of the Gonzales City Code describes the process for filling vacant positions that occur on the Commission. This report describes that process and presents a recommendation to the City Council for filling the current vacancies.

REVIEW AND ANALYSIS
Section 12.04.130(A) of the Gonzales City Code states that all vacancies or expired terms of Commission members shall be nominated by the Mayor and appointed thereafter by approval of a majority of the members of the City Council. Commission members shall be appointed for a term of four years. However, if a vacancy occurs other than by expiration of term, it shall be filled by appointment for the unexpired portion of the term.

AGENDA
ITEM
17 Packet Pg. 76
Commissioner Gloria Velasquez was appointed to the Gonzales Planning Commission in March of 2011, and re-appointed on April 17, 2017, and May 3, 2021. Commissioner Gloria Velasquez’s last four-year term expired April 3, 2025. Commissioner Tencia Vargas was appointed to the Gonzales Planning Commission on May 9, 2022. Commissioner Tencia Vargas’s term expired May 3, 2025. Commissioner Adrian Paco was appointed to the Gonzales Planning Commission on May 3, 2021. Commissioner Adrian Paco’s four-year term expired May 3, 2025.

Notwithstanding, prior to their expiration of terms, each Commissioner sent an email correspondence to the Director indicating a desire to be considered by the Council for reappointment to the Planning Commission. The Director recommends the City Council reappoint each of the three Commissioners to the Planning Commission.

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: Having a full complement of Planning Commissioners (five of them) will allow the City to consider future projects that will allow the City to be a safe, clean, family-friendly community, diverse in its heritage, and retain its small-town charm.

Explain: Reappointing the Commissioners to the Planning Commission will ensure that the City continues to operate in a manner that will facilitate the City’s vision and goals.

Explain: See above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X 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
Explain: See above.

ALTERNATIVES
The Council could choose not to reconsider and appoint one or all three incumbent commissioners and then re-open the position to the public to find new candidates. Such reconsideration could potentially Packet Pg. 77
affect the City gathering a quorum of commissioners in the meanwhile to conduct City Planning Commission business before new appointments have been made.

BUDGET IMPACT
Each Planning Commissioner is given a $50 stipend for each meeting attended. Therefore, the City will spend $250 per month on five Commissioners.

CONCLUSION
It is recommended that the City Council Adopt Resolution No. 2025-20, A Resolution of the City Council of the City of Gonzales approving the reappointment of Gloria Velasquez, Tencia Vargas and Adrian Paco to the Gonzales Planning Commission and setting the term of the commissioners to expire four (4) years from their current term ending date.

Attachments:

1. Resolution No. 2025-20
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Page 1 of 2 ends

RESOLUTION NO. 2025-20

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

APPROVING THE REAPPOINTMENT OF GLORIA VELASQUEZ, TENCIA

VARGAS AND ADRIAN PACO TO THE GONZALES PLANNING COMMISSION, AND SETTING THE TERM OF THE COMMISSIONERS TO EXPIRE FOUR (4)

YEARS FROM THEIR CURRENT TERM ENDING DATE
WHEREAS, it has been noted that the terms of three current Planning Commissioners have recently expired; and
WHEREAS, Chapter 12.04 of the Gonzales City Code describes the process for filling vacant positions that occur on the Commission; and
WHEREAS, Section 12.04.130(A) of the Gonzales City Code states that all vacancies or expired terms of Commission members shall be nominated by the Mayor and appointed; thereafter, by approval of a majority of the members of the City Council; and WHEREAS, Commission members shall be appointed for a term of four years, however, if a vacancy occurs other than by expiration of term, it shall be filled by appointment for the unexpired portion of the term; and
WHEREAS, Commissioner Gloria Velasquez was appointed to the Gonzales Planning Commission in March of 2011, and re-appointed on April 17, 2017, and May 3, 2021.

Commissioner Gloria Velasquez’s last four-year term expired May 3, 2025; and WHEREAS, Commissioner Tencia Vargas was appointed to the Gonzales Planning Commission on May 9, 2022. Commissioner Tencia Vargas’s term expired May 3, 2025; and WHEREAS, Commissioner Adrian Paco was appointed to the Gonzales Planning Commission on May 3, 2021. Commissioner Adrian Paco’s four-year term expired May 3, 2025; and
WHEREAS, notwithstanding the expiration of their terms as Commissioners, each Commissioner has sent correspondence to the Director indicating a desire to be considered by the Council for reappointment to the Planning Commission.

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

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

Section 2. The City Council approves the reappointment of Gloria Velasquez, Tencia Vargas and Adrian Paco to the Gonzales Planning Commission and sets the term of Commissioners to expire after four additional years of service to the City as recited above, with Gloria Velasquez’s, Tencia Vargas’s, and Adrian Paco’s term expiring May 19, 2029.

Packet Pg. 79
Attachment: Resolution No. 2025-20 (3248 : Resolution No. 2025-20 Reapointment of Planning Commissioners)

Page 2 of 2 ends

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 19th day of May 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
Packet Pg. 80
Attachment: Resolution No. 2025-20 (3248 : Resolution No. 2025-20 Reapointment of Planning Commissioners) City of Gonzales

FINANCE DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-21 MOU with International Association of Fire Fighters Local 5388

RECOMMENDATION
It is recommended that the City Council of the City of Gonzales adopt Resolution No.2025-21, A Resolution of the City Council of the City of Gonzales Authorizing the Execution of a Memorandum of Understanding Between the City of Gonzales and the International Association of Fire Fighters Local 5388 Memorandum of Understanding, for the period covering January 1, 2025 through December 31, 2025.

BACKGROUND
In September 2023 the City of Gonzales reached an agreement and City Council approved a new Memorandum of Understanding with the International Association of Fire Fighters Local 5388 for a period covering January 1, 2023 through December 31, 2024.

About January 2025 the City was notified by the Association of their desire to enter into negotiations for a successor agreement. Negotiations then began in about February 2025.

The City was notified on May 12, 2025 that the Tentative Agreement reached on May 9th was considered ratified by the Local 5388, since the majority of the members were present at negotiations.

REVIEW AND ANALYSIS
As referenced in the background the City and the International Association of Fire Fighters Local 5388 began negotiations for a successor Memorandums of Understanding for the expiring Memorandum of Understanding.

AGENDA
ITEM
18 Packet Pg. 81
During the period of negotiations, the two parties came to a final Tentative Agreement on May 9, 2025.

Key items in the new MOU for the City of Gonzales Fire Fighters are listed below. All other provisions of the existing MOU remain the same.
• The term of the MOU will be 1 year, retroactive to January 1, 2025 • Effective the first full pay period in January 2025 an increase in base pay of 3% • Effective the first full pay period in January 2025 employee monthly contributions to Health Care will change as follows (which will be the first pay period of February):

Premium Classification Current Contribution New Contribution Employee Only $0.00 $125.00
Employee + Dependent $106.62 $175.00
Employee + Spouse $106.62 $175.00
Employee + Family $341.30 $475.00
Additionally, the association Members and the City shall share 50% / 50% in any premium increases imposed after the effective date of this Memorandum of Understanding. • The following Standing Orders will be added:

Standing Order #13
Out of Service Apparatus Procedures:

The Fire Chief will be immediately notified of any conditions that require or may require any piece of apparatus to be taken out of service. The Chief will make the determination as to whether repairs can be done by City personnel or outside contractors, and provide directions to the officer on duty.

In the event the Fire Chief cannot be immediately notified, the officer on Duty will notify the City Manager that conditions exist requiring apparatus to be placed out of service. The following notifications will then be made by the officer on Duty:

1. Firecom will be notified by phone or radio, approximate duration of time out of service will be given and substitute apparatus will be logged on.

2. Auto aid partners (Regional Chualar Station and CTF) will be notified by phone (Type 1 and Water Tender only)

3. City mechanic will be notified by phone if on duty.

If the City Mechanic is unavailable, minor repairs such as light replacement should be attempted by the on duty crew. For tire repair issues contact D&J Tire for 24/7 emergency service (831) 776-7520. In the event the apparatus needs to be towed, request a tow truck of appropriate size for the apparatus through fire communications.

Apparatus Substitutions:

In the event the primary type 1 engine needs to be taken out of service, the secondary type 1 engine will be immediately equipped and placed in service. In the event both type 1 engines are out of service Patrol 8151 will be equipped with EMS and extrication equipment and shall respond in place of the type one engine to all incident types not including fires. Water tender 8141 will respond in place of the type 1 engine to all types of fires. The officer in charge shall request mutual aid type one engines if the incident type is beyond the ability of the in service apparatus (ladder needs, or increased pump capacity requirements)
No substitutions need be made in the case of Patrol 8151 or Water tender 8141 being taken out of service.

Packet Pg. 82
Standing order #14
Incident reporting:

It is the responsibility of the on duty Captain, or firefighter acting as Captain to complete all incident reports for all incidents that occur during their time as shift supervisor. The subordinate may assist with reporting for training purposes.

The Captain has the responsibility to forward the details of any incident eligible for cost recovery to the Fire Chief.

Standing order #15
EMS equipment complement:

The complement of EMS equipment carried in each bag and on each apparatus shall adhere to the posted complement list. No substitutions of equipment or supplies shall be made without notifying the Fire Chief. In the event supplies or equipment are out of stock, the Chief shall be notified immediately so equipment can be ordered, and all shift supervisors will be notified. The Captain is responsible for assuring the EMS equipment is fully stocked and ready for use before being relieved.

Standing order #16
Apparatus and equipment fueling:

Apparatus shall be refueled when the fuel level reaches three quarters of a tank. Gasoline powered portable equipment shall be refueled after each use with fuel from the supply located at the fire station, the fuel carried on the apparatus is for use on incident scenes only.

Standing order #17
Apparatus parking:

Personnel shall not dismount the apparatus until the operator applies the parking brake. The operator shall not move the apparatus without communicating the move to personnel on the ground.

Explain: The proposed MOU supports the vision by maintaining stability for the one year period in a critical public safety function that is necessary to maintain a safe family-friendly community.

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.

City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. __X_ Yes ___No _ NA Explain: Please see explanation above for the Vision
Strong fiscal reporting allows us to provide appropriate resources for:

Packet Pg. 83
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment X Yes No N/A
• Education Yes No X N/A
Explain: A stable organization is needed to ensure a high level of service necessary to promote public safety for the community and to maintain the City’s infrastructure.

ALTERNATIVES
The City Council has the authority to not approve the MOU and direct staff to continue negotiations with further policy direction. While this action is not recommended, should this occur, the existing employment practices would continue until a MOU is approved.

BUDGET IMPACT
There is no financial impact to the current fiscal year budget. The amount of the negotiated agreement is in line with the budget.

CONCLUSION
It is recommended that the City Council of the City of Gonzales adopt Resolution No.2025-21, A Resolution of the City Council of the City of Gonzales Authorizing the Execution of a Memorandum of Understanding Between the City of Gonzales and the International Association of Fire Fighters Local 5388 Memorandum of Understanding, for the period covering January 1, 2025 through December 31, 2025.

Attachments:

1. Resol 25-21 MOU with IAFF Local 5388
Packet Pg. 84
RESOLUTION NO. 2025-21

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING THE EXECUTION OF A MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF GONZALES AND THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS LOCAL 5388, FOR THE PERIOD COVERING JANUARY 1, 2025 THROUGH DECEMBER 31, 2025
WHEREAS, the City of Gonzales and the International Association of Fire Fighters Local 5388 entered into a two-year MOU for the period of January 1, 2023 through December 31, 2024; and WHEREAS, the City was notified by the International Association of Fire Fighters Local 5388 in January 2025 to begin negotiations for a successor MOU; and WHEREAS, the City and the Association began negotiations in February 2025 and reached a Tentative Agreement on May 9, 2025; and
WHEREAS, the City of Gonzales was notified on May 12, 2025, that the International Association of Fire Fighters Local 5388 ratification of the Tentative Agreement was deemed to be on May 9th since the majority of the membership was in attendance when the Tentative Agreement was reached.

NOW, THEREFORE, BE IT HEREBY RESOLVED, that the City Council of the City of Gonzales hereby approves the Memorandum of Understanding between the City of Gonzales and the International Association of Fire Fighters Local 5388, for the period covering January 1, 2025 through December 31, 2025.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 19th day of May 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
Packet Pg. 85
Attachment: Resol 25-21 MOU with IAFF Local 5388 (3260 : Resolution No. 2025-21 MOU with International Association of Fire Fighters Local City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-23 Trash Pump Purchase for the Wastewater Treatment Plant

RECOMMENDATION
Staff recommends that the City Council Adopt Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Purchase of a Trailer Mounted Trash Pump for the Wastewater Treatment Plant in the amount of $95,000.

BACKGROUND
A trash pump is used to move water between the three disposal ponds at the wastewater treatment plant.

This is done to fill and empty disposal ponds to maximize the percolation of treated wastewater and maintenance of the ponds.

REVIEW & ANALYSIS
The existing pump is 25 years old and no longer able to pump the amount of wastewater needed. It also has a small gas tank which allows it to run for only six hours, which limits it functionally. Since last November the City has rented a pump from Rain for Rent at a monthly cost of $5,000.

AGENDA
ITEM
19 Packet Pg. 86
Staff obtained the following three quotes for a new pump.:

Name Price Lead Time
PAC Machine Company $95,000 6 weeks
Muniquip (Grundfos) $110,000 18 weeks
Muniquip (Gorman Rupp) $114,400 18 weeks
The pump from PAC Machine Company is the preferred pump for the following reasons:
• Lowest cost
• It’s easier to obtain parts for and get serviced
• Shorter lead time that will reduce the need to rent a pump Therefore, staff recommend that the City Council approve the purchase of a trailer-mounted pump from PAC Machine Company, in the amount of $95,000.

Explain: This purchase will improve safety and efficiency and allow reliable service to the community by keeping the Wastewater Treatment Plant operational.

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Staff received many different bids to make an economical purchase to provide increased reliability and excellence in service.

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

Packet Pg. 87

ALTERNATIVES
Direct staff to not purchase this pump and continue to rent a pump from Rain for Rent.

BUDGET IMPACT
Funding for this purchase will come from the Sewer Enterprise Fund (GL310-0000-57030) and sufficient funds are available.

CONCLUSION
Staff recommends that the City Council Adopt Resolution No. 2025-23, A Resolution of the City Council of the City of Gonzales Approving the Purchase of a Trailer Mounted Trash Pump for the Wastewater Treatment Plant in the amount of $95,000.

Attachments:

1. Resolution 2025-23
Packet Pg. 88
RESOLUTION NO. 2025-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

APPROVING THE PURCHASE OF A TRAILER MOUNTED TRASH PUMP FOR THE WASTEWATER TREATMENT PLANT IN THE AMOUNT OF $95,000
WHEREAS, Public Works staff use a pump at the Wastewater Treatment Plant to fill and empty disposal ponds to maximize percolation of treated wastewater and allow staff to perform maintenance on the ponds; and
WHEREAS, The existing pump is 25 years old and no longer able to pump the amount of wastewater needed; and
WHEREAS, Staff obtained the following three quotes for a new pump:

Name Price Delivery Time
PAC Machine Company $95,000 6 weeks
Muniquip (Grundfos) $110,000 18 weeks
Muniquip (Gorman Rupp) $114,400 18 weeks
WHEREAS, Staff recommends purchasing the pump from PAC Machine Company due to its lower cost, it is easier to obtain parts for and get serviced, and the shorter delivery time that will reduce the need to rent a pump; and
WHEREAS, Funding for this $95,000 purchase will come from the Sewer Enterprise Fund (GL310-000-57030) and sufficient funds are available.; and NOW THEREFORE, BE IT HEREBY RESOLVED, the City Council of the City of Gonzales hereby authorizes the purchase of a trailer mounted trash pump from PAC Machine Company for the wastewater treatment plant in the amount of $95,000.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 19
th day of May, 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
Packet Pg. 89
Attachment: Resolution 2025-23 (3262 : Resolution No. 2025-23 Trash Pump Purchase for the Wastewater Treatment Plant) City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-26 CalPERS Industrial Disability Retirement

RECOMMENDATION
It is recommended that the City Council consider and adopt Resolution No. 2025-26, A Resolution of the City Council of the City of Gonzales Regarding Local Safety Member Industrial Disability Retirement.

BACKGROUND AND DISCUSSION
California Government Code Section 21156 sets forth the criteria for the City Council to make a determination that a public employee is incapacitated physically or mentally for the performance of his or her duties and is thus eligible to retire based on said disabling condition. The City Council makes the determination on the basis of competent medical opinion and all medical and vocational information provided by the member, employer and worker’s compensation carrier.

Juan Pablo Mendoza is a Gonzales Police Captain and has held this position since March 7, 2022. Prior to this, Mendoza served as a sergeant and a corporal and has been employed with the City of Gonzales since June 1, 2007. During his time with the City Captain Mendoza led efforts including the National Night Out and the South County Community Policing Academy. He managed the department’s Field Training Officer Program and supported the Department’s day-to-day operations.

Mendoza’s official date of retirement was May 9, 2025. The basis for Captain Mendoza’s Industrial Disability Retirement application has been confirmed by competent medical practitioners and his condition is physical in nature resulting from orthopedic injuries sustained while in City service.

Accordingly, it can be concluded that Mendoza is incapacitated within the meaning of the Public Employee’s Retirement Law for the performance of his usual and customary duties in the position of Police Captain.

AGENDA
ITEM
20 Packet Pg. 90
Based on the medical evidence, staff recommends that the City Council adopt Resolution No. 2025-26 which will approve a CalPERS Industrial Disability Retirement for Captain Medoza with an effective date of May 10, 2025.

Following approval of the Resolution, Staff will forward a certified copy of the resolution to CalPERS.

Once received, CalPERS will process the industrial disability retirement application within 90 days.

Employers’ must make “advanced disability pension payments” to safety members who have qualified for benefits and have submitted an application for industrial disability retirement until the member begins receiving their retirement benefits directly from CalPERS. All advanced payments will be deducted from the retroactive portion of the member’s retirement allowance and reimbursed to the City.

Explain: This Local Safety Member Industrial Disability Retirement reflects the City’s ongoing commitment to provide for and promote the health and welfare of our Local Safety Members.

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 ____NA
• Housing X Yes ____ No ____NA
• Recreation X Yes ____ No ____NA
• Environment X Yes ____ No ____NA
• Education X Yes ____ No ____NA
Explain: Please see explanation above for the Vision.

ALTERNATIVES
The Council has the option not to approve the resolution, which is not recommended because it is necessary to ensure continued dedication to our Vision by providing for and promoting the health and welfare of all of our Employees.

BUDGET IMPACT
There will be direct budget impact. Advanced Disability Pension Payments by the City will be reimbursed to the City following the complete processing of the employee’s retirement application.

CONCLUSION
It is recommended that the City Council consider and adopt Resolution No. 2025-26, A Resolution of the City Council of the City of Gonzales Regarding Local Safety Member Industrial Disability Retirement.

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Attachments:

1. Resolution 2025-26
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Page 1 of 2 ends

RESOLUTION NO. 2025-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

REGARDING LOCAL SAFETY MEMBER INDUSTRIAL DISABILITY RETIREMENT WHEREAS, the City of Gonzales is a contracting agency (hereinafter referred to as “Agency”) of the California Public Employees’ Retirement System (“CalPERS”) and WHEREAS, the California Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purposes of the Public Employee’s Retirement Law and whether such disability is “industrial” within the meaning of such law; and WHEREAS, an application for the Industrial Disability Retirement of Juan Mendoza (“Mendoza”), employed by the Agency in the position of Police Captain, has been filed with CalPERS; and
WHEREAS, the City Council of the City of Gonzales has reviewed the medical and other evidence relevant to such alleged disability.

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

1. That the above recitations are true.

2. That the City Council of the City of Gonzales does find and determine, after review of medical evidence and other evidence relevant thereto, that Mendoza is substantially incapacitated within the meaning of the California Public Employees’ Retirement Law for performance of his usual duties in the position of Police Captain due to orthopedic injuries and disorders to his back, right hip, knees, and left ankle.

3. That the aforesaid determination was made on the basis of competent medical opinion and is not being used as a substitute for the disciplinary process.

4. That the City Council of the City of Gonzales finds and determines that Mendoza is substantially incapacitated for the performance of the usual duties of the same position for other California public agencies in CalPERS.

5. That the City Council of the City of Gonzales does find and determine that such incapacity and/or disability is the result of injury arising out of and in the course of employment as a local safety member for the City. The duration of the disabling condition is expected to be permanent.

6. That Mendoza has filed Workers’ Compensation claims for his disabling conditions and that said claims are pending.

Packet Pg. 93
Attachment: Resolution 2025-26 (3265 : Resolution No. 2025-26 CalPERS Industrial Disability Retirement)

7. That neither Mendoza nor the City has applied to the Workers’ Compensation Appeals Board for a determination pursuant to Government Code Section 21166 whether such disability is industrial.

8. That there is not a possibility of third-party liability.

9. That Mendoza has retired and will be separated from his employment in the position of Police Captain after expiration of his rights under Government Code Section 21164, effective May 10, 2025, and that there is no dispute as to the expiration of such leave rights pending. His last day on pay status will be May 9, 2025.

10. That advanced permanent disability payments will be made.

11. That the City Council finds that the primary disability is physical in nature, orthopedic injury to his back, right hip, knees and ankle, and that Mendoza is competent to act on his own behalf in legally binding retirement matters.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 19th day of May, 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 94
Attachment: Resolution 2025-26 (3265 : Resolution No. 2025-26 CalPERS Industrial Disability Retirement) City of Gonzales

CITY ATTORNEY

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Michael Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Gonzales Police Department's AB 481 Annual Report 2024-2025

RECOMMENDATION
Accept the Gonzales Police Department’s AB 481 Annual Report, and direct staff to post it on the Police Department and the City’s website, and direct that the “meeting” to allow public questions and input on the Report be appropriately publicized before the July 21st meeting.

BACKGROUND
Effective January 1, 2022, Assembly Bill 481 (codified in Government Code Section 7070 et seq.) requires legislative bodies to adopt ordinances approving military equipment use policies before law enforcement agencies can continue to engage in specified activities related to the use of what the state legislature has now defined as “military equipment” in Government Code Section 7070. Ordinance No. 2022-131 “Approving Gonzales Police Department Policy Manual Policy 709-Military Equipment” was approved by the City Council on June 20, 2022.

REVIEW & ANALYSIS
Government Code Section 7071(e)(1) states that a governing body shall review any ordinance it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment at least annually and, subject to paragraph (e)(2), vote on whether to review the ordinance at a regular meeting.

Said review is scheduled for the Gonzales City Council meeting of July 21, 2025.

Government Code Section 7072 also provides that any law enforcement agency that receives approval for a military use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved. The Annual Report is meant to provide yearly information about each type of military equipment that was approved by Council. The report AGENDA
ITEM
21 Packet Pg. 95
contains a summary of how the equipment is used (if at all), any complaints or concerns received about the equipment, and any associated costs related to the equipment’s use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website.

After submitting an annual military equipment report to its governing body, and making said report and related documents available to the public for review for a minimum of 30 days, the law enforcement agency is required to hold at least one well-publicized meeting at which the general public may discuss and ask questions regarding the report and the law enforcement agency’s funding, acquisition or use of military equipment. The City plans to hold such a meeting as a part of its regular City Council meeting on July 21, 2025.

The City’s Police Department has now prepared its AB 481 Annual Report, a copy of which is attached hereto as Attachment 1. No new military equipment has been purchased in Fiscal Year 2024-2025. No action needs to be taken this evening other than to accept the report, direct that it be posted on the Police Department and the City’s website, and direct that the “meeting” to allow public questions and input on the Report be appropriately publicized before the July 21, 2025 meeting. The Council is also free to ask any questions it may have regarding the Annual Report.

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: Tracking military equipment owned and used by the Police Department has been deemed by the legislature as an effective means of reassuring the public that such equipment is being properly deployed and is necessary for public 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: It is important for the residents of Gonzales to know what equipment is available to the Police Department to provide protection services in an effective and cost-efficient manner.

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

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes ____ No X NA
• Housing Yes ____ No X NA
• Recreation Yes ____ No X NA
• Environment Yes ____ No X NA
• Education Yes ____ No X NA
Explain: NA.

Packet Pg. 96

ALTERNATIVES
None at this time.

BUDGET IMPACT
No budget impact is associated with receipt of the attached report.

CONCLUSION
The Council should accept the report, direct that it be posted on the Police Department and the City’s website, and direct that the “meeting” to allow public questions and input on the Report be appropriately publicized before the July 21st meeting.

Attachments:

1. AB 481 Annual Report 2024-2025
Packet Pg. 97
AB 481 ANNUAL REPORT 2024-2025

GONZALES POLICE DEPARTMENT
AB 481 requires the Police Department to provide the City Council and the public with a report outlining how the military equipment possessed and/or acquired by the City during the previous year was used to ensure the police department is adhering to its policy and the City ordinance concerning military equipment. In Fiscal Year 2024-2025, the Gonzales Police Department did not acquire any new equipment that would be considered “military equipment” pursuant to the provisions of Government Code Section 7070 et seq.

1. Semi-automatic rifles.

A. A summary of how the military equipment was used and the purpose of its use. These are standard-issue duty weapons, occasionally deployed in circumstances in which an officer can articulate a reasonable expectation that the rifle may be needed (e.g. where an officer anticipates an armed encounter, need for long range fire, where an officer believes a suspect may be wearing body armor).

B. A summary of any complaints or concerns received concerning the military equipment.

None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. Minimal maintenance and training costs, paid for out of Police Department Budget.

E. The quantity possessed of each type of military equipment. Nine.

F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought, for each type of military equipment. None.

2. 38 mm Less Lethal Projectile Launchers.

A. A summary of how the military equipment was used and the purpose of its use. Not used.

B. A summary of any complaints or concerns received concerning the military equipment.

None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

E. The quantity possessed of each type of military equipment. Three.

F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought, for each type of military equipment. None.

Packet Pg. 98
Attachment: AB 481 Annual Report 2024-2025 (3264 : Gonzales Police Department's AB 481 Annual Report)

3. Unmanned Aerial System (UAS) (aka “drones”). The Gonzales Police Department operates one DJI Matrice 30T UAS. The UAS is an unmanned, remotely powered and piloted aerial system that can sustain direct flight, designed for gathering information via photograph, recording or other means. The UAS is equipped with a Forward Looking Infrared (FLIR) and optical zoom lenses.

A. A summary of how the military equipment was used and the purpose of its use. The Gonzales Police Department uses the UAS for law enforcement operations to preserve and enhance public safety. The UAS can be deployed when an overhead view would assist officers or incident commanders with planning and responding to situations such as:
a. Public safety and life preservation missions including, but not limited to, barricaded suspects, hostage situations, active shooters, apprehension of armed and dangerous fleeing suspects, and during the execution of search warrants. b. Major traffic collision investigations.
c. Natural disaster management or disaster response and recovery. d. Mass casualty events.
e. Search for lost or missing persons or rescue events. f. Suspected explosive devices.
g. Post-incident crime scene preservation and documentation. h. Pursuant to a search warrant.
i. Anytime a UAS would enhance public safety and improve operational safety. j. Anti-UAV operations when a person is operating a UAV in a manner which impedes emergency personnel who, in the course of their duties, are coping with an emergency (refer to Penal Code 402(a)(2)).
k. Training missions.
l. Mutual aid support or training missions in support of Gonzales Fire Department when the underlying mission meets the uses outlined in policy. Unmanned aerial systems used by the Gonzales Police Department are used in compliance with all federal, state, and local laws.
m. Special Events.

In Fiscal Year 2024/2025 the drone had a total of seventy-seven (77) flights, 24 of which were completed for training purposes.

B. A summary of any complaints or concerns received concerning the military equipment.

The City received several informal complaints during the course of public comment that the drone had been used in violation of relevant law and for improper or illegal purposes. None of these claims has ever been substantiated.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. There have been no training or operational costs in Fiscal Year 2024-25.

E. The quality possessed of each type of military equipment. One.

Packet Pg. 99
Attachment: AB 481 Annual Report 2024-2025 (3264 : Gonzales Police Department's AB 481 Annual Report) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to Construct the Industrial Wastewater Treatment Facility

RECOMMENDATION
Staff recommend that the City Council Adopt Resolution No. 2025-22, A Resolution of the City Council of the City of Gonzales Awarding a Contract to Gateway Pacific Contractors to Construct the Industrial Wastewater Treatment Facility on the Amount of $23,584,000 Including a Contingency Budget of $1,646,000.

BACKGROUND
The City’s Municipal Wastewater Treatment Plant (MWWTP) operates under a Waste Discharge Permit from the Central Coast Regional Water Quality Control Board (Regional Board). The MWWTP has a permitted capacity of 1.3 million gallons/day (MGD) and current sewer flows to the plant are approximately 1.2 million MGD. Therefore, the MWWTP is near its permitted capacity and for several years has struggled to meet the 2006 discharge permit requirements as the MWWTP wasn’t designed to treat the amount of ag-wash water it receives. The ag-wash water is approximately 75% of the wastewater treated at the MWWTP and the ag-wash water contains cleansers and sanitizers that disrupt the biological treatment process.

Through the preparation of a Long-Term Wastewater Management Plan, the City determined that construction of an Industrial Wastewater (IW) System was the most cost effective and expedient approach to expand the City’s wastewater system. The System will collect the ag-wash water discharged from the three large processing facilities in the Business Park and convey it to a new IW Treatment Facility to be constructed on City-owned property just east of the MWWTP.

AGENDA
ITEM
22 Packet Pg. 100
In April 2023 the Regional Board issued a new Waste Discharge Permit (WDR) that contains requirements the MWWTP is not capable of meeting. Therefore, in addition to constructing the IW System, the City needs to upgrade the MWWTP to comply with the new RWQCB WDR permit.

The City will expand the wastewater system through the following phases:

Phase 1 – The IW System will be delivered under three contracts:

1. Construct the IW Pipeline along Fermin Lane and to the Business Park

2. Construct the IWTF.

3. While the IWTF is under construction, issue a contract to rehabilitate the existing 21-inch sewer main constructed in 1981 by shifting sewer flows to the new IW Pipeline.

The CEQA-Plus document for the IW System was completed in October 2021 and construction documents (plans, technical specifications, and cost estimate) were completed in September 2022.

The IW Pipeline Contract was issued for bid on June 27, 2024. On July 16, 2024 City staff received the fully executed $29M State Revolving Fund (SRF) loan for project construction. Five bids for the IW Pipeline Contract were opening on August 6, 2024 and the contract was awarded to Sierra Construction and Excavating at the September 3, 2024 Council meeting. The contractor began field operations on November 4, 2024 and will complete the project in June 2025.

Phase 2 - Upon completion of the IW System, 800,000 gallons of ag-wash water will be shifted from the MWWTP to the IW Treatment Facility. The City will then rehabilitate the MWWTP which includes removing accumulated sludge, lining the treatment ponds, upgrading the aeration system and constructing a new treatment process. When this phase is completed, the MWWTP will meet the Regional Board new permit requirements.

Phase 3 - Add additional treatment processes at the MWWTP to expand the wastewater system capacity to 2.9MGD which will accommodate projected housing growth through 2050.

Phase 4 - Expand the IW System treatment capacity to 3.5 MGD to accommodate additional processing facilities in the City’s Industrial Business Park and add a recycled water component.

REVIEW & ANALYSIS
The construction documents (plans, technical specifications, and cost estimate) for the “Industrial Wastewater Treatment Facility Project” were prepared by Dudek Consulting.

The project was issued for public bid on January 15, 2025, which included a legal notice in the Salinas Valley Tribune and construction documents were provided to the various Builders Exchange for review by contractors. A pre-bid meeting was held on January 24, 2025, to allow bidders to hear a presentation and opportunity to ask questions and view the project alignment. On February 26, 2025, the City received bids from the following contractors:

Packet Pg. 101

BIDDER BID AMOUNT
1 Gateway Pacific Contractors (low bidder) $21,938,000
2 Specialty Construction $22,219,663
3 Clark Brothers $22,447,500
4 Sierra Construction and Excavation $22,813,420
5 Mountain Cascade $24,640,726
6 Anderson Pacific $27,968,100
City staff and MNS Engineers (WW/IW Program Manager) reviewed the bids and determined that the lowest responsive and responsible bid was submitted by Gateway Pacific Contractors. Therefore, staff is recommending the City Council award the construction contract for this project to Gateway Pacific Contractors and that the City Council reject the other submitted bids.

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.

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
Land 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
Deficit = $5,958,000
(1) Includes 5.0% Contingency
(2) Includes 7.5% Contingency
Packet Pg. 102
The City’s rate consultant, Lechowicz & Tseng Consultants, were consulted and confirmed the sewer rates effective on January 1, 2024 will provide the City with a net operating revenue sufficient to cover the required 1.20 debt service ratio. On March 17, 2025, City Council approved Resolution 2025-08, stating its intention and expectation to reimburse expenditures incurred by the City incurred on the Industrial Wastewater Project as approved by the State Revolving Fund (SRF), requesting a $6,000,000 amendment to fully fund the project.

On March 18, 2025, the $6M loan amendment request was submitted to the State Water Resources Control Board to supplement the City’s $29M State Revolving Fund (SRF) loan to cover the total expected cost of the Project. The amendment request is currently being reviewed by SRF financial staff.

City staff recommends the Notice to Proceed for construction of the IWTF not be issued until the amendment is fully executed.

The schedule for the project is on the table below:

Explain: This project supports our vision by making improvements to the wastewater system to increase its capacity for residential and industrial development.

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

Date/Time
Award Construction Contract at City Council Meeting May 19, 2025 Construction Contract Executed June 10, 2025
Preconstruction Meeting / Notice to Proceed (tentative) September 1, 2025 Contractor Mobilization (tentative) September 15, 2025
Construction Complete (tentative) June 2027
Packet Pg. 103
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: See Vision above.

ALTERNATIVES
• Direct staff to not construct this project
• Direct staff to re-advertise and re-bid the project
• Amend or modify staff recommendation.

BUDGET IMPACT
This contract will be funded with the Sewer Rates and Sewer Impact funds.

CONCLUSIONS
Staff recommend that the City Council Adopt Resolution No. 2025-22, A Resolution of the City Council of the City of Gonzales Awarding a Contract to Gateway Pacific Contractors to Construct the Industrial Wastewater Treatment Facility on the Amount of $23,584,000 Including a Contingency Budget of $1,646,000.

Attachments:

1. Resolution No. 2025-22

2. Agreement with Gateway Pacific Contractors
Packet Pg. 104

Page 1 of 2 ends

RESOLUTION NO. 2025-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AWARDING A CONTRACT TO GATEWAY PACIFIC CONTRACTORS TO

CONSTRUCT THE INDUSTRIAL WASTEWATER TREATMENT FACILITY IN THE AMOUNT OF $23,584,000 INCLUDING A CONTINGENCY BUDGET OF $1,646,000 WHEREAS, the City will expand the City’s wastewater system by constructing Phase 1 of the Industrial Wastewater System (IW System) with an initial capacity of 1.0 million gallons/day; and
WHEREAS, a CEQA-Plus EIR for the IW System was adopted in October 2021 and construction documents (plans, technical specifications, and cost estimate) were completed in September 2022, and as such, no further CEQA analysis is needed for the authorization contemplated in this resolution; and
WHEREAS, the IW System will be delivered though two construction contracts (the IW Pipeline contract and the IW Treatment Facility contract); and WHEREAS, The project was issued for public bid on January 15, 2025 and staff opened six bids on February 26, 2025 from the following contractors:

CONTRACTOR BID AMOUNT
1 Gateway Pacific Contractors (low bidder) $21,938,000
2 Specialty Construction $22,219,663
3 Clark Brothers $22,447,500
4 Sierra Construction and Excavation $22,813,420
5 Mountain Cascade $24,640,726
6 Anderson Pacific $27,968,100
WHEREAS, City staff and the MNS Engineers Construction Manager reviewed the bids and determined that the lowest responsive and responsible bid was submitted by Gateway Pacific Contractors.

NOW THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Gonzales approves a contract with Gateway Pacific Contractors to construct the Industrial Wastewater Treatment Facility, a copy of which is attached hereto in part as Exhibit A and by this reference is incorporated herein, and authorizes and directs the City Manager to execute said Agreement in the amount of $23,584,000 including a contingency budget of $1,646,000.

Packet Pg. 105 Attachment: Resolution No. 2025-22 (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to Construct the WWTP)

Page 2 of 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 19th day of May 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
Packet Pg. 106 Attachment: Resolution No. 2025-22 (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to Construct the WWTP) 00510-1

AGREEMENT FOR THE CONSTRUCTION OF THE CITY OF GONZALES

INDUSTRIAL WASTEWATER TREATMENT FACILITY
THIS AGREEMENT made and entered into the 19th day of May 2025, between the City of Gonzales, a municipal corporation of the State of California, hereinafter referred to as the “City” or “Owner” and Gateway Pacific Contractors, Inc., hereinafter referred to as the “Contractor”;

RECITALS
WHEREAS, the City Council, heretofore caused Drawings and Specifications for the Work hereinafter mentioned to be prepared, and therefore did approve and adopt the Drawings and Specifications; and
WHEREAS, the City Council did cause to be published for the time and in the manner required by law, a Notice inviting sealed Bids for the performance of the Work; and WHEREAS, the Contractor, in response to such Notice, submitted to the City Council within the time specified in the Notice, and in the manner provided for therein, a sealed Bid for the performance of the Work specified in the Contract Documents, which the Bid, and the other Bids submitted in response to the Notice, the City publicly opened and canvassed in the manner provided by law; and WHEREAS, the Contractor was the lowest responsible Bidder for the performance of the Work, and the City Council, as a result of the canvass of the Bids, did determine and declare Contractor to be the lowest responsible Bidder for the Work and award a Contract to Contractor to do the Work referred to in the aforementioned plans and specifications; and
WHEREAS, Contractor is ready, willing, and able to complete all Work specified in the Contract Documents, in accordance with the Specifications, Drawings and all other terms and conditions of the Contract Documents; and
NOW, THEREFORE, in consideration of the mutual covenants hereinafter, the City and Contractor agree as follows:

ARTICLE 1 – SCOPE OF WORK

1.1 The Work. The Contractor shall furnish all labor, materials, tools, apparatus, equipment, transportation, insurance, bonds, special services, and skill to construct and complete in good workmanlike and substantial manner to the satisfaction of the City all the Work called for, and in the manner designated in, and in strict conformity with the Contract Documents for the project entitled:

City of Gonzales Industrial Wastewater Treatment Facility Project. All incidental work not shown on the Plans or specified herein which is necessary to complete the Work so as to provide the project described, or shown, shall be furnished, and installed as part of this Contract at no additional cost to the City.

1.2 Location of Work. The Work will be performed at the following location: City of Gonzales and Monterey County, CA as shown on the Contract Drawings.

Packet Pg. 107 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-2
ARTICLE 2 – CONTRACT DOCUMENTS

2.1 Contract Documents.

The Contract Documents consist of the following documents:
• Bidding Requirements (Sections 00100 through 00499. Does not include Section 00300, Supplemental Project Information Available to Bidders); • Contracting Requirements (Sections 00500 through 00999); • General Requirements (Division 1);
• Technical Specifications (Division 2 and all other Divisions following); • Contract Drawings;
• Addenda (numbers 1 to 5, inclusive);
• Permits from other agencies as may be required by law; and • All other documents incorporated by reference into these Contract Documents. • The following which may be delivered or issued on or after the Effective Date of the Agreement and are not attached hereto:
o Notice to Proceed (Section 00600)
o Field Directive(s)
o Change Order(s)
o Unilateral Change Order
o Field Order(s)

2.2 Not Contract Documents. There are no Contract Documents other than those listed in this Section 00510, Article 2, Contract Documents. Section 00300, Supplemental Project Information Available to Bidders, and the information supplied therein, are not Contract Documents. The Contract Documents may only be amended, modified, or supplemented as provided for in Section 00700, General Conditions and Section 00800, Supplementary General Conditions.

2.3 Definitions and Terms. Unless otherwise specifically provided herein, all terms, words and phrases defined in Section 00700- 1.02, Definitions of Words and Terms, shall have the same meaning and intent in this Agreement.

2.4 Entire Contract; Interpretation. This Agreement, together with the Contract Documents, constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto (including without limitation, City’s award of the Contract to Contractor and any applicable letter of intent), unless such agreement is expressly incorporated herein. City makes no representations or warranties, express or implied, not specified in this Agreement or the Contract Documents. This Agreement and the Contract Documents are the product of negotiation between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code §1654) that ambiguities are to be construed against the drafting party shall not be employed in the interpretation of this Agreement or the Contract Documents.

2.5 Severability. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision.

Packet Pg. 108 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-3

2.6 Amendments. The terms of this Agreement or the Contract Documents shall not be waived, altered, modified, supplemented, or amended in any manner whatsoever except as authorized by the Contract documents or by a written instrument signed by the Parties.

2.7 Further Assurances. The Parties shall cooperate fully in the execution of any and all other documents and in the completion of any additional actions that may be necessary or appropriate to give full force and effect to the terms and intent of this Agreement and the Contract Documents.

ARTICLE 3 – CONTRACT PRICE

3.1 Contract Price Breakdown. Subject to additions and deductions by Change Order(s) as provided in the Contract Documents, the City agrees to pay and Contractor agrees to accept, in full payment for completion of the Work in accordance with the Contract Documents as follows:

BID SCHEDULE
Item Description Quantity Units Bid Amount

1. Mobilization/Demobilization, Bonding and
Insurance (not to exceed 3 percent of Total Bid
Price)
1 LS $600,000

2. Demolition Work: Full compensation for all work
performed (including, but not limited to, all
labor, supervision, materials, equipment,
transportation, repairs and restoration of
facilities following demolition, and other work
required for demolition as shown on the Contract
Drawings
1 LS $100,000
3 Sheeting, shoring, and bracing, or equivalent
method for the protection of life and limb in
trenches and open excavations, pursuant to
California Labor Code Sections 6705 and 6707
1 LS $100,000

4. Civil Work: Full compensation for all work
performed required to complete all civil work as
indicated in the Contract Documents (including,
but not limited to all labor, supervision,
materials, equipment, transportation, and other
work, including but not limited to site
preparation, clearing/grubbing, grading,
earthwork, excavation, backfilling, subgrade
remediation, yard piping, finished grading,
hauling & exporting excess material, importing
materials, paving, pond lining, fencing and
appurtenances, dewatering and any other
appurtenant work to the project as indicated in
the Contract Documents)
1 LS $7,538,000

5. Structural Work: Full compensation for all work
performed required to complete all structural
1 LS $4,000,000
Packet Pg. 109 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-4
Item Description Quantity Units Bid Amount
work (including but not limited to all labor,
supervision, materials, equipment,
transportation, cast-in-place concrete structures,
formwork, placing and curing concrete, framing
and trusses, concrete masonry unit operations
building structure, metal roofing, pre-fabricated
blower building structure, canopy structures,
doors, roll-up doors, stairs and ladders, hand
rails, equipment pads, footings, foundations, and
all other appurtenant structural work as
indicated in the Contract Documents

6. Mechanical Work: Full compensation for all work
performed required to complete all mechanical,
and miscellaneous work (including but not
limited to all labor, supervision, materials,
equipment, transportation, and equipment
procurement & installation). Include in this bid
line-item Contractor's costs for procurement
administration, overhead, logistics, supervision,
and incidentals associated with equipment.

Include in this line-item furnishing, installing,
starting up and commissioning of blower
systems, air diffusion systems, pumps and pump
motors, screen handling, grit handling, HVAC
systems, plumbing systems and fixtures and all
other mechanical systems included in the
Contract Documents
1 LS $4,000,000

7. Electrical, Instrumentation & Control: full
compensation for all work performed for
complete installation of the electrical,
instrumentation and control systems (including
but not limited to all labor, permitting,
supervision, materials, equipment,
transportation, procurement, delivery, logistics
of materials, coordination with utility service
provider (Pacific Gas & Electric), trenching,
excavation, backfill, compaction, placement of
slurry mixes, furnishing and installing duct banks,
conduit, pull boxes, grounding equipment, wires,
wiring, switches, transformers, interface
connections, motor control centers, integrated
power centers, electrical equipment and
components, standby diesel engine generator,
automatic transfer switch for standby diesel
engine generator, installation of control panels
1 LS $4,800,000
Packet Pg. 110 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-5
Item Description Quantity Units Bid Amount
and materials, and all other appurtenances
necessary to electrically connect, test, and startup the electrical, instrumentation and control systems as specified in the Contract Documents

8. Protective Coatings: Full compensation for all
work required to complete all protective coatings
installation (including but not limited to all labor,
supervision, materials, equipment,
transportation, and other work as indicated in
the Contract Documents
1 LS $150,000

9. Storm Water Pollution Prevention Program
(SWPPP): Full compensation for all work as
required for complete compliance with the
Regional Water Quality Control Board, General
Construction Activity Storm Water Permit and
the Storm Water Pollution Prevention Plan
(including but not limited to all labor,
supervision, materials, transportation, and
equipment purchased, installed and utilized for
development and implementation SWPPP)
1 LS $50,000

10. Testing: Full compensation for furnishing and
mobilizing all necessary labor, equipment,
materials, tools and incidentals, and performing
all the work involved, including but not limited to
testing of blowers, equipment, pipelines,
concrete, and compaction in accordance with the
Contract Documents
1 LS $30,000

11. Field Orders: Allowance for Field Orders as
indicated in Section 00700 General Conditions.

Contractor is only compensated from this line
item as approved by the Owner or Owner’s
Representative
1 LS $400,000

12. All Other Work: Full compensation for work
performed and required to complete the project
in its entirety as shown in the Contract
Documents (including all other work not
identified in the previous line items and any
labor, supervision, materials, and equipment
required thereto
1 LS $100,000

13. Potholing: Full compensation for all work
performed and required, including all labor,
supervision, materials, and equipment
purchased, installed and utilized, for conducting
1 LS $20,000
Packet Pg. 111 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-6
Item Description Quantity Units Bid Amount
potholing of all potential underground
interference facilities

14. Environmental Mitigation and Monitoring
Measures: Full compensation for furnishing and
mobilizing all necessary labor, equipment,
materials, tools, incidentals, and performing all
the work involved, for compliance with all
environmental mitigation and monitoring
measures as identified in Specification Section
01061
1 LS $50,000
TOTAL BID AWARD AMOUNT (Items 1 through 14) $21,938,000 TOTAL BID AWARD AMOUNT (in words) Twenty-one million, nine hundred thirty-eight thousand dollars The above Total BID AWARD Price includes all allowances, if any, provided for in the Contract Documents.

Progress and final payments shall be in accordance with the General Conditions.

When, under the provisions of this Agreement, the City shall charge any sum of money against Contractor, City shall deduct and retain the amount of such charge from the amount of the next succeeding progress estimate, or from any other moneys due or that may become due to the Contractor from City. If, on completion or termination of the Contract, sums due Contractor are insufficient to pay City's charges against him, the City shall have the right to recover the balance from Contractor or its sureties.

Compensation for Unit Price Items shall be based upon the unit prices stated in above schedule times the actual quantities or units of work and materials performed or furnished. Unit prices paid by the City may change depending on actual quantities or units or work completed in accordance with Section 00700-9.04, Increased or Decreased Quantities.

3.2 Substitution of Securities for Money Withheld. At any time prior to final payment, Contractor may request substitution of securities for any money withheld by the City to ensure performance of the Agreement in the manner as provided by California Public Contract Code §22300. At the expense of the Contractor, securities equivalent to the money withheld may be deposited with the City or with an approved financial institution as escrow agent according to a separate Security Agreement. Securities eligible for substitution shall include those listed in §16430 of the California Government Code or bank or savings and loan certificates of deposit.

ARTICLE 4 – CONTRACT TIMES

4.1 Time is of the Essence. All time limits for Milestones, if any, Substantial Completion, and completion and readiness for final payment as stated in the Contract Documents are of the essence of this Agreement.

Packet Pg. 112 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-7

4.2 Commence Work. Contractor shall commence execution of the Work on the date established in the Notice to Proceed. The City reserves the right to modify or alter the Commencement Date of the Work.

4.3 Days to Achieve Contract Times. The Contract time for this project will be 420 working days.

4.4 Liquidated Damages. The City and Contractor recognize that time is of the essence of this Agreement and that the City will suffer financial loss if the Work is not completed within the contract times specified in 4.3, Days to Achieve Contract Times. The actual fact of the occurrences of damages and the actual amount of the damages which City would suffer if the Work were not completed within the specified times set forth above are dependent upon many circumstances and conditions which could prevail in various combinations, and, from the nature of the case, it would be impracticable and extremely difficult to fix the actual damages.

Damages which City would suffer in the event of delay include loss of the use of the Project, and, in addition, expenses of prolonged employment of an architectural and engineering staff; costs of administration, construction management, inspection, and supervision; the loss suffered by the public within the City’s constituent cities by reasons of the delay in the completion of the project to serve the public at the earliest possible time; and, costs associated with ongoing and extended permit compliance.

Accordingly, the City and the Contractor agree that as liquidated damages for delay, in accordance with California Government Code Section 53069.85, the Contractor will forfeit and pay to the City liquidated damages in the amounts set forth in the table below, per day for each and every calendar day that expires after the time for completion specified in the above section 4.3, Days to Achieve Contract Times, except as otherwise provided by extension of time pursuant to Section 00700-8.04, Time Extensions, of the General Conditions.

It is further understood and agreed in accordance with California Government Code Section 53069.85 that the liquidated damages sum specified in this provision is not manifestly unreasonable under the circumstances existing at the time this Contract was made, and that the City may deduct liquidated damages sums in accordance with this provision from any payments due or that may become due the Contractor.

The Contractor shall commence work on the date established via the Notice to Proceed and all work under this contract shall be complete on or before the expiration of Four Hundred twenty (420) working days after said Notice-To-Proceed. Liquidated damages of $3,500 per day will be assessed for each calendar day over contract time unless the Contractor can prove in writing, and shall be supplemented by the equipment manufacturer in writing,that equipment procurementlead time has delayed the project beyond the completion date and that the equipment was ordered in a timely manner.

As equipment lead times are anticipated to drive the project schedule, critical submittals have been identified in Specification Section 01300. The Contractor shall submit initial submittals for these critical items within 16 weeks of issuance of the NTP and re-submittal, if necessary, within 8 weeks of receipt of comments. If the Contractor is delinquent on submissions, liquidated damages will be assessed for each calendar day in exceedance of the specified delivery date.

4.5 Damages for Violations of Environmental Impact Mitigation Requirements. The Contractor recognizes that the City has defined environmental controls for the Work to promote compliance with the environmental impact mitigation requirements identified in the City’s certified Programmatic Environmental Impact Report and related mitigation monitoring and reporting plan for the Work. In Packet Pg. 113 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-8
addition to the liquidated damages specified in Section 4.4, Liquidated Damages, the City, and the Contractor agree that penalties imposed on and costs incurred by the City as a result of violations of such requirements caused by the actions or inactions of the Contractor, its employees, or subcontractors, the Contractor will forfeit and pay the City any and all penalties and costs for such violations. Costs related to such penalties and violations include, without limitation, City staff time, City equipment costs, materials, City’s consultants, and legal fees.

ARTICLE 5 – INSURANCE AND BONDS

5.1 Insurance. Contractor shall maintain in full force and effect at all times during the term of the Agreement, at its sole expense, policies of insurance in accordance with the General Conditions and the Supplementary Special Conditions. By execution of this Agreement, the Contractor certifies as follows:
“I am aware of the provisions of §3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this contract.”

5.2 Faithful Performance Bond and Payment Bond. The Contractor, simultaneously with the execution of the Agreement, will be required to furnish a Faithful Performance Bond to guarantee the Faithful Performance of the Contract equal to one hundred (100%) of the Total Contract Price set forth in Article 4 and a Payment Bond required by Part 4, Title 15, Chapter 7, Division Three of the Civil Code of the State of California equal to one hundred percent (100%) of the Total Contract Price set forth in Article 4. The bonds must be issued by a surety company admitted in California and with a current A.M.

Best’s rating of no less than A-VIII or equivalent, unless otherwise approved by Agency.

Any alteration(s) made in any provision of this Agreement shall not operate to release any surety from liability on any bond required hereunder and the consent to make such alteration(s) is hereby given, and any surety on said bonds hereby waives the provisions of Sections 2819 and 2845 of the California Civil Code.

If suit is brought upon this bond by the City and judgement is recovered, the Surety shall pay all litigation expenses incurred by the City in such suit, including attorney’s fees, court costs, expert witness fees and investigation expenses.

Contractor must submit the following document with the bonds: The original, or a certified copy, of the unrevoked appointment, power of attorney, bylaws or other instrument entitling or authorizing the person who executed the bond to do so.

ARTICLE 6 – CITY’S REPRESENTATIVE(S) AND AUTHORITY’S CONSULTANTS

6.1 City’s Representative. The City has designated Patrick Dobbins, or his/her designee to act as City’s Representative. The City may change the individual(s) acting as City’s Representative(s), or delegate one or more specific functions to one or more specific City’s Representative at any time with notice and without liability to Contractor. Each City’s Representative is the beneficiary of all Contractor obligations to the City, including without limitation, all releases, and indemnities. All documents requiring the signature/approval of City shall be signed by the City’s Representative.

6.2 Design Engineer. The City has designated Dudek to be the Design Engineer. The Design Engineer is included within and covered by Contractor’s release and indemnity obligations to the City.

6.3 Construction Manager. The City has designated MNS Engineers Inc. to act as Construction Manager. The City may assign, upon mutual agreement, all or part of the City’s Representative’s duties, Packet Pg. 114 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-9
rights, and responsibilities to the Construction Manager. The Construction Manager is the beneficiary of all Contractor obligations to the City, including without limitation, all releases, and indemnities.

ARTICLE 7 – CONTRACTOR’S REPRESENTATIONS

7.1 Representations and Warranties. In order to induce the City to enter into this Agreement, Contractor makes the following representations and warranties:

A. Contractor has visited the Site and has examined thoroughly and understood the nature and extent of the Contract Documents, Work, Site, locality, actual conditions, and all local conditions, and federal, state and local laws and regulations that in any manner may affect cost, progress, performance or furnishing of Work or which relate to any aspect of the means, methods, techniques, sequences or procedures of construction to be employed by Contractor and safety precautions and programs incident thereto.

B. Contractor has examined thoroughly and understood all reports of exploration and tests of subsurface conditions, record drawings, drawings, products specifications, or reports, available for bidding purposes, of physical conditions, including Underground Facilities, which are identified in Section 00300, Supplemental Project Information Available to Bidders, or which may appear in the Contract Documents. Contractor further acknowledges and agrees that, in executing the Agreement, it is relying on its own observation of (1) the site of the Work, (2) access to the Site, (3) all other data and matters requisite to the fulfillment of the Work and on its own knowledge of existing facilities on and in the vicinity of the site of the Work to be constructed under the Contract, (4) the conditions to be encountered, (5) the character, quality and scope of the proposed Work, (6) the quality and quantity of the materials to be furnished, and (7) the requirements of the Contract, the plans, the specifications, and other related information made available to Contractor by the City.

C. Contractor has correlated its knowledge and the results of all such observations, examinations, investigations, explorations, tests, reports and studies with the terms and conditions of the Contract Documents.

D. Contractor has given the City prompt written notice of all conflicts, errors, ambiguities, or discrepancies that it has discovered in or among the Contract Documents and record drawings and actual conditions and the written resolution thereof (if any) through Addenda issued by the City is acceptable to Contractor.

E. Contractor is duly organized, existing and in good standing under applicable state law, and is duly qualified to conduct business in the State of California.

F. Contractor has duly authorized the execution, delivery and performance of this Agreement, the other Contract Documents, and the Work to be performed herein. The Contract Documents do not violate or create a default under any instrument, agreement, order, or decree binding on Contractor.

Packet Pg. 115 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-10
Contractor listed the following
Subcontractors consistent with the
Subcontractor Listing Law, California
Public Contract Code §4100 et seq.:

Name of Subcontractor and
Address of Mill or Shop Description of Subcontractor’s Work Subcontractor’s
License No.

ARTICLE 8 – LABOR CODE COMPLIANCE, DAVIS-BACON WAGES, and TERMS AND CONDITIONS

8.1 California Labor Code. Pursuant to the provisions of §1770 et seq. of the California Labor Code, which are hereby incorporated by reference and made a part hereof, the Director of the Department of Industrial Relations has determined the general prevailing rate of the per diem wages and the general prevailing rate for holiday and overtime Work in the locality in which the Work is to be performed, for each craft, classification or type of worker needed to perform the Work. Per diem wages shall be deemed to include employer payments for health and welfare, pension, vacation, apprenticeship or other training programs, and similar purposes. Copies of the rates are on file at City Public Works Department office or may be downloaded from the State Department of Industrial Relations website, Division of Labor Statistics and Research, http://www.dir.ca.gov/dlsr/. The rate of prevailing wage for any craft, classification, or type of workmanship to be employed in performing the Work is the rate established by the applicable collective bargaining contract which rate so provided is hereby adopted by reference and shall be effective for the life of this Agreement or until the Director of the Department of Industrial Relations determines that another rate is adopted.

It shall be mandatory for the Contractor and all subcontractors to pay not less than such specified prevailing wage rates to all workers employed in the performance of the Work. If any worker engaged in the performance of the Work is paid less than the specified prevailing wage rate, the Contractor shall pay to each such worker the difference between the specified prevailing wage rate and the actual amount paid to such worker for each calendar day or portion thereof. In addition, Contractor shall comply with the provisions of California Labor Code §1775, including provisions which require Contractor to (a) forfeit as penalty to City not more than $200 for each calendar day or portion thereof for each worker (whether employed by Contractor or any Subcontractor) paid less than the applicable prevailing wage rates for any work done under this Contract in violation of the provisions of the California Labor Code, and (b) pay to each worker the difference between the prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof for which the worker was paid less than the prevailing wage.

The Contractor and each Subcontractor shall keep or cause to be kept an accurate record showing the names, addresses, social security numbers, work classifications, straight time and overtime hours worked each day and week for all laborers, workers and mechanics employed in connection with the performance under the Contract Documents or any subcontract thereunder, and showing the actual per diem wage paid to each of such workers, which records shall be open at all reasonable hours to inspection by City Packet Pg. 116 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-11
and its agents and to the representatives of the Division of Labor Law Enforcement of the State Department of Industrial Relations. Contractor assumes all responsibility for such payments and shall defend, indemnify, and hold the City harmless from any and all claims made by the State of California, the Department of Industrial Relations, any Subcontractor, any worker or any other third party with regard thereto. Contractor shall be responsible to ensure compliance with section 1776. Failure to comply with that section may result in the California Labor Commissioner’s assessment of a penalty of $100 per day per affected worker.

The Contractor shall post, at each jobsite, a copy of such prevailing rate of per diem wages as determined by the Director for the California Department of Industrial Relations.

The successful Bidder and its subcontractors shall employ the appropriate number of apprentices, in each apprenticeable craft, on the project site as stipulated in California Labor Code sections 1777.5, 1777.6 and 1777.7. Failure to comply may result in the California Labor Commissioner’s assessment of a penalty of $100 for each day of noncompliance.

Pursuant to California Labor Code Section 1771.1, by execution below, the Bidder and its Subcontractors certify that when the Bidder’s bid was submitted, the Bidder and its Subcontractors were registered and qualified to perform public work pursuant to Section 1725.5 of the California Labor Code, subject to limited legal exceptions. Pursuant to California Labor Code Section 1771.1, by execution below, the Bidder and its Subcontractors certify that they are registered and qualified to perform public work pursuant to Section 1725.5 of the California Labor Code, subject to limited legal exceptions.

Contractor shall submit executed Agreement to Comply with California Labor Law Requirements, Appendix A, with the submitted bid.

8.2 Davis-Bacon Wages. Pursuant to State Water Resources Control Board (SWRCB) Division of Financial Assistance for Clean Water State Revolving Fund (CWSRF), the successful bidder must comply with the Davis-Bacon Act (40 U.S.C. 276a to a-7) as supplemental by Department of Labor regulations (29 CFR Part 5) it shall be mandatory upon the Contractor to whom the work is awarded and upon any Subcontractor under the Contractor to pay not less than Davis-Bacon wage rates. A copy of said wage rates is on file at City Public Works Department office and in Specification Appendix F, Davis Bacon Wage Determinations. These rate determinations may also be found on the Department of Labor’s website at:
https://sam.gov/wage-determinations . It shall be mandatory upon the Contractor to whom the work is awarded and upon any Subcontractor under the Contractor to pay not less than State prevailing wage rates or Davis-Bacon wage rates, whichever is higher, to all workmen employed by them in the execution of the Contract.

8.3 Davis-Bacon Terms and Conditions. Pursuant to State Water Resources Control Board (SWRCB) Division of Financial Assistance for Clean Water State Revolving Fund (CWSRF), the successful bidder must comply with the Davis-Bacon Act (Title VI of the Clean Water Act (CWA)) and Terms and Conditions in Specification Appendix E.

ARTICLE 9 – MISCELLANEOUS PROVISIONS

9.1 Assignment. Contractor shall not assign this Contract or any rights under or interests in the Contract without the City's written approval. No assignment will release or discharge the Contractor from any duty or responsibility under the Contract Documents.

Packet Pg. 117 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-12

9.2 Successors and Assigns; No Third-Party Beneficiaries. The provisions of this Agreement and the Contract Documents shall inure to the benefit of and shall apply to and bind the successors and permitted assigns of the Parties. Nothing contained in this Agreement or the Contract Documents is intended to or shall be deemed to confer upon any person, other than the Parties and their respective successors and permitted assigns, any rights, or remedies hereunder.

9.3 Contractor Bankrupt. If Contractor should commence any proceeding under federal bankruptcy law, or if Contractor be adjudged bankrupt, or if Contractor should make any assignment for the benefit of creditors, or if a receiver should be appointed on account of Contractor's insolvency, then the City may, without prejudice to any other right or remedy, terminate the Agreement and complete the Work by giving notice to Contractor and its surety according to the General Conditions.

The City shall have the right to complete, or cause completion of the Work, all as specified in the General Conditions.

9.4 Unfair Competition. The following provision is included in this Agreement pursuant to California Public Contract Code §7103.5.
"In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the contractor or subcontractor offers and agrees to assigning to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with §16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, with further acknowledgment by the parties."

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

Contractor shall include the provisions of this Subsection in any subcontract.

9.6 No Waiver of Remedies. Neither the inspection by the City or its agents, nor any order or certificate for payment of money, nor any payment for, nor acceptance of the whole or any part of the Work by the City, nor any extensions of time, nor any positions taken by City or its agents shall operate as a waiver of any provision of this Agreement or the Contract Documents or of any power herein reserved to City or any right to damages herein provided, nor shall any waiver of any breach of this Agreement or of the Contract Documents be held to be a waiver of any other or subsequent breach. All remedies provided in this Agreement and in the Contract Documents shall be taken and construed as cumulative; that is, in addition to each and every other remedy provided in this Agreement and/or the Contract Documents, and the City shall have any and all equitable and legal remedies, which it would in any case have.

Packet Pg. 118 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-13

9.7 Governing Law, Jurisdiction and Venue. This Agreement and the Contract Documents shall be deemed to have been entered into in the County of Monterey, State of California, and governed by and construed in accordance with the laws of the State of California, without regard to conflict of law or choice of law principles. Proper venue of legal actions will be exclusively vested in a state court in the County of Monterey. The parties agree that subject matter and personal jurisdiction are proper in state court in the County of Monterey and waive all venue objections.

9.8 Rights of Action. No right of action shall accrue upon or by reason of this Agreement to or for the use or benefit of anyone other than the parties to this Agreement. The parties to this Agreement are the Contractor and the City.

9.10 Build America, Buy America. The Contractor acknowledges to and for the benefit of the City and the State of California (“State”), that it understands the goods and services under this Agreement are being funded with monies made available by the Clean Water State Revolving Fund and/or Drinking Water State Revolving Fund that have statutory requirements commonly known as Build America, Buy America; that requires all of the iron and steel products, manufactured products and construction materials incorporated into the Project must be produced in the United States, including such materials installed by any subcontractors or suppliers pursuant to this Agreement. The Contractor hereby represents and warrants to and for the benefit of the City and the State that (a) the Contractor has reviewed and understands the Build America, Buy America Requirement, (b) all of the iron and steel products, manufactured products, and construction materials used in the project will be and/or have been produced in the United States in a manner that complies with the Build America, Buy America Requirement, unless a waiver of the requirement is approved, and (c) the Contractor will provide any further verified information, certification or assurance of compliance with this paragraph, or information necessary to support a waiver of the Build America, Buy America Requirement, as may be requested by the City or the State. Notwithstanding any other provision of this Agreement, any failure to comply with this paragraph by the Contractor shall permit the City or State to recover as damages against the Contractor any loss, expense, or cost (including without limitation attorney’s fees) incurred by the City or State resulting from any such failure (including without limitation any impairment or loss of funding, whether in whole or in part, from the State or any damages owed to the State by the City). While the Contractor has no direct contractual privity with the State, as a lender to the City for the funding of its project, the City and the Contractor agree that the State is a third-party beneficiary and neither this paragraph (nor any other provision of this Agreement necessary to give this paragraph force or effect) shall be amended or waived without the prior written consent of the State.

9.11 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement or the Contract Documents shall be made in writing and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by:

A. personal delivery, in which case notice is effective upon delivery; B. certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; C. nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service; D. facsimile transmission, in which case notice shall be deemed delivered upon transmittal, provided that (a) a duplicate copy of the notice is promptly delivered by first-class or certified mail or by overnight delivery, or (b) a transmission report is generated reflecting the accurate transmission Packet Pg. 119 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-14
thereof. Any notice given by facsimile shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient’s time or on a non-business day.

E. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice as of the date of such rejection, refusal, or inability to deliver.

Any written notice to Contractor shall be sent to:

Company Name Gateway Pacific Contractors, Inc.

Company Address 8055 Freeport Blvd, Sacramento, CA 95832 Individual’s Name Gary A. Bechtel
Individual’s Email Address [email protected]
Individual’s Direct Dial Phone #: (916) 665-4100
Individual’s Fax # (916) 665-4119
Any written notice to City shall be sent to:

City of Gonzales – City Clerk
P.O. Box 647
147 Fourth Street
Gonzales, CA 93926

9.12 Execution in Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have signed the Agreement on the date set forth opposite their names.

CONTRACTOR
Under penalty of perjury, I certify that the taxpayer
identification number and all other information
provided here are correct.

DATE: BY_________________________________
____________________________________
Print Name
____________________________________
Title
BY_________________________________
__________________________________
Packet Pg. 120 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to 00510-15
Print Name
____________________________________
Title
____________________________________
DIR Registration #
____________________________________
Federal ID#
____________________________________
State ID#
________________________________________
California Contractor’s License No. & Classification
______________________________________
Contractor’s License Expiration Date

CITY OF GONZALES
a California Public Entity
DATE: BY _________________________________
Carmen Gil, City Manager
Approved As To Form: Attest:

Mike Rodriquez, City Attorney Mary Villegas, Deputy City Clerk Packet Pg. 121 Attachment: Agreement with Gateway Pacific Contractors (3261 : Resolution No. 2025-22 Awarding Contract to Gateway Pacific Contractors to City of Gonzales

FINANCE DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 19, 2025
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Fiscal Year 2023-2024 Audit Financial Statements and Management Report

RECOMMENDATION
It is recommended that the City Council and Agency Board accept the City and Successor Agency’s Audited Financial Statements and Management Report for Fiscal Year Ending June 30, 2024.

BACKGROUND
The State of California Government code (sections 25250 & 25253) require all general-purpose local government to issue an annual report on the financial position and activities of that government. The report must be presented in conformance with generally accepted accounting principles (GAAP) and must be audited by an independent firm of certified public accountants (CPA) in conformance with generally accepted auditing standards (GAGAS). The goal of the audit by an independent firm is to provide reasonable assurance that the accounting transactions, practices, and procedures result in fair presentation of the financial position of the organization. In addition, the audit provides the same type of assurance about management’s assertions about the adequacy of internal accounting controls to safeguard the assets of the entities.

REVIEW AND ANALYSIS
The independent auditor has rendered an unqualified audit opinion indicating that the City and Successor Agency are materially in compliance and have accounting records that properly reflect the financial position of those entities.

For the Fiscal Year Ending June 30, 2024, a Single Audit was not required to be performed and therefore is not included as part of the audited financial statements.

AGENDA
ITEM
23 Packet Pg. 122
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: The annual audit is important to make sure that the financial structure of the City is sound, and to identify any issues that might need correction. This is important because it is necessary to keep a close watch on the resources needed to carryout the Mission.

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.

ALTERNATIVES
There are no alternatives to the annual audit; they are required per State law.

BUDGET IMPACT
Please see attached audit.

CONCLUSION
It is recommended that the City Council and Agency Board accept the City and Successor Agency’s Audited Financial Statements and Management Report for Fiscal Year Ending June 30, 2024.

Attachments:

1. 2024 Gonzales Financial Statements
Packet Pg. 123

CITY OF GONZALES
INDEPENDENT AUDITOR’S REPORT
AND

FINANCIAL

STATEMENTS
JUNE 30, 2024
Packet Pg. 124 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report)

TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet – Governmental Funds 6
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities 7
Statement of Revenue, Expenditures and Changes in
Fund Balance – Governmental Funds 8
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities 9
Statement of Net Position – Proprietary Funds 10
Statement of Revenue, Expenses and Changes in Fund Net
Position - Proprietary Funds 11
Statement of Cash Flows – Proprietary Funds 12 – 13
Statement of Fiduciary Net Position – Private Purpose Trust Fund 14 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Fund 15 Notes to Basic Financial Statements 16 – 46
Packet Pg. 125 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) TABLE OF CONTENTS (Continued)
Page
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 47
Budgetary Comparison Schedule – Community Development Block Grant 48 Budgetary Comparison Schedule – Measure X 49
Schedule of the City’s Proportionate Share of Net Pension Liability 50 Schedule of Contributions 51
Supplemental Only Information
Combining Balance Sheet – Nonmajor Governmental Funds 52 – 54 Combining Statement of Revenue, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds 55 – 57 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 58 – 59 Packet Pg. 126 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Gonzales, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Gonzales (the “City”), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Packet Pg. 127 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements.

Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 47–49, the schedule of the City’s proportionate share of net pension liability on page 50, and the schedule of contributions on page 51, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and Packet Pg. 128 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 3 comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 30, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

April 30, 2025
Packet Pg. 129 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) See accompanying notes. 4

CITY OF GONZALES

STATEMENT OF NET POSITION
JUNE 30, 2024
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 23,153,487 $ 7,300,715 $ 30,454,202 $ Accounts receivable, net - 657,006 657,006
Due from other governments 1,282,534 - 1,282,534
Interest receivable 45,860 69,859 115,719
Notes and loans receivable 1,820,394 - 1,820,394
Other assets - deposits 23,246 - 23,246
Internal balances (1,433,753) 1,433,753 -
Capital assets, net of allowance
for depreciation 18,972,856 28,649,921 47,622,777
Total assets 28,434,189 53,541,689 81,975,878
DEFERRED OUTFLOWS OF RESOURCES 361,006 2,106,565 2,467,571

LIABILITIES
Accounts payable and accrued expense 942,228 232,144 1,174,372 Deposits payable 33,083 91,368 124,451
Interest payable 52,104 2,014 54,118
Long-term liabilities
Due within one year 419,257 408,197 827,454
Due in more than one year 11,132,003 1,070,653 12,202,656 Lease liability 84,445 168,535 252,980
Net pension liability 4,041,915 692,670 4,734,585
Compensated absences - 443,053 443,053
Total liabilities 2,665,581 17,148,088 19,813,669
DEFERRED INFLOWS OF RESOURCES 38,112 222,392 260,504

NET POSITION
Net investment in capital assets 17,098,661 16,038,850 33,137,511 Restricted for specific projects and programs 5,603,917 - 5,603,917 Restricted for capital improvements 16,473,646 3,057,676 19,531,322 Unrestricted 6,994,976 (898,450) 6,096,526
Total net position $ 26,091,502 38,277,774 $ 64,369,276 $ Packet Pg. 130 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) See accompanying notes. 5
CITY OF GONZALESSTATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2024 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government 1,229,096 $ - $ 8,248 $ - $ (1,220,848) $ - $ (1,220,848) $ Public safety 5,554,636 35,495 629,555 - (4,889,586) - (4,889,586) Public works 1,316,621 - 455,373 6,292,445 5,431,197 - 5,431,197 Parks and recreation 1,570,269 160,015 17,739 7,429 (1,385,086) - (1,385,086) Community development 1,188,586 109,840 516,259 - (562,487) - (562,487) Debt Service
Interest and fiscal charges - 118,847 - - (118,847) - (118,847) Total governmental activities 305,350 10,976,330 1,627,174 6,299,874 (2,743,932) - (2,743,932) Business-type activities
Water 1,907,656 2,419,386 - - - 511,730 511,730
Sewer 1,518,384 2,114,926 - 5,524 - 602,066 602,066
Garbage 1,401,041 1,684,538 - - - 283,497 283,497
Solar Energy 185,528 - - - - (185,528) (185,528)
Electric Power Authority - - - - - - -
Total business-type activities 6,218,850 5,012,609 - 5,524 - 1,211,765 1,211,765 Total primary government 6,524,200 15,988,939 1,627,174 6,305,398 (2,743,932) 1,211,765 (1,532,167) General Revenue
Property taxes - 3,476,123 3,476,123Sales taxes - 3,411,703 3,411,703Franchise and other taxes - 159,227 159,227 Utility users tax - 320,472 320,472
Business licenses - 65,852 65,852Investment income 399,731 491,763 891,494 Other - 387,742 387,742
Transfers (1,245,531) 1,245,531 -
Total general revenue and transfers (845,800) 9,558,413 8,712,613 Change in Net Position 365,965 6,814,481 7,180,446
Net Position
Beginning of year 25,725,537 31,463,293 57,188,830
End of year $ 26,091,502 38,277,774 $ 64,369,276 $
Functions/Programs
Net Revenue/(Expense) and
Program Revenue Changes in Net Position
Packet Pg. 131
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 6
CITY OF GONZALES BALANCE SHEET – GOVERNMENTAL FUNDS JUNE 30, 2024 Capital Project Fund Debt Service Fund
Gonzales Community TAMC Nonmajor Total
Community Public Financing Development Measure Governmental Governmental General Center Debt Authority Block Grant X Funds Funds ASSETS
Cash and investments 713,975 $ 16,189,396 $ 743,749 $ 329,986 $ - $ 5,176,381 $ 23,153,487 $ Due from other governments 1,000,084 158,754 - - 24,734 98,962 1,282,534 Interest receivable 6,075 - - 3,377 - 36,408 45,860
Notes and loans receivable - - - 1,527,985 - 292,409 1,820,394 Other assets - deposits - 23,246 - - - - 23,246
Total assets $ 16,348,150 1,743,380 $ 743,749 $ 1,861,348 $ 24,734 $ 5,604,160 $ 26,325,521 $

LIABILITIES
Accounts payable and accrued expense $ 566,149 337,274 $ - $ - $ - $ 38,805 $ 942,228 $ Interest payable - - 52,104 - - - 52,104Due to other funds - - - - - 839,753 839,753Deposits and other liabilities 33,083 - - - - - 33,083Advances from other funds 594,000 - - - - - 594,000 Total liabilities 964,357 566,149 52,104 - - 878,558 2,461,168

DEFERRED INFLOWS OF RESOURCES
Deferred loans - - - 1,527,985 - 292,409 1,820,394
Total deferred inflows of resources - - - 1,527,985 - 292,409 1,820,394

FUND BALANCE
Restricted
Lighting, landscape & park maintenance - - - - - 3,385,906 3,385,906 Community development - - - 333,363 - 1,127,392 1,460,755 Street improvements - - - - 24,734 271,947 296,681
Public safety - - - - - 460,575 460,575
Community center - 15,782,001 691,645 - - - 16,473,646
Committed for contingency reserve 1,000,000 - - - - - 1,000,000Unassigned - (220,977) - - - (812,627) (1,033,604) Total fund balance 779,023 15,782,001 691,645 333,363 24,734 4,433,193 22,043,959 Total liabilities, deferred inflows of resources,
and fund balance 1,743,380 $ 16,348,150 $ 743,749 $ 1,861,348 $ 24,734 $ 5,604,160 $ 26,325,521 $ Special Revenue Funds
Packet Pg. 132
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 7

CITY OF GONZALES

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION

OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2024
Total governmental fund balance 22,043,959 $
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 28,649,921 Governmental long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds (11,635,705) Compensated absences are not due and payable in the current period and therefore are not reported in the governmental funds (443,053) Deferred outflows of resources related to net pension liability, represent an consumption of net position or fund balance that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until that time 2,106,565 Net pension liability applicable to governmental activities is not due and payable in the current period and accordingly is not reported in the governmental funds (4,041,915) Deferred inflows of resources related to net pension liability, represent an acquisition of net position or fund balance that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time (222,392) In governmental funds, receivables which are not considered available are deferred. Such items are not deferred in the Statement of Net Position 1,820,394 Net position of governmental activities $ 38,277,774
Packet Pg. 133 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) See accompanying notes. 8
CITY OF GONZALES STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024 Capital Project Fund Debt Service Fund
Gonzales Community TAMC Nonmajor Total
Community Public Financing Development Measure Governmental Governmental General Center Debt Authority Block Grant
X Funds Funds
Revenue
Taxes and assessments 6,003,707 $ - $ - $ - $ - $ 1,093,004 $ 7,096,711 $ Licenses, permits and impact fees 225,562 - - - - 22,754 248,316 Intergovernmental 337,352 663,845 - - 336,666 1,270,842 2,608,705 Charges for services 74,039 - - - - - 74,039
Fines and forfeitures 18,981 - - - - - 18,981
Loan repayments - - - 21,148 - - 21,148
Use of money and property 86,351 177,301 - 22,537 - 205,572 491,761 Other - 336,619 - - - 59,435 396,054
Total revenue 841,146 7,082,611 - 43,685 336,666 2,651,607 10,955,715 Expenditures
Current
General government 787,050 - - - - 288,924 1,075,974
Public safety 4,772,305 - - - - 180,589 4,952,894
Public works 241,983 - - 7,503 - 517,995 767,481
Parks and recreation 949,090 - - - - 308,039 1,257,129
Community development 450,616 - 210,373 25,459 - 221,872 908,320 Capital outlay - 3,357,743 - - - - 3,357,743
Debt Service
Principal 138,103 - - - 294,278 22,482 454,863
Interest and fiscal charges - 25,768 52,104 - 42,388 2,079 122,339 Total expenditures 3,357,743 7,364,915 262,477 32,962 336,666 1,541,980 12,896,743 Revenue over/(under) expenditures (282,304) (2,516,597) (262,477) 10,723 - 1,109,627 (1,941,028) Other Financing Sources/(Uses)
Contributions - 5,619,024 - - - - 5,619,024
Loan proceeds - - 9,825,000 - - - 9,825,000
Transfers in/(out) - net 10,260,025 83,088 (8,870,878) (27,403) - (199,301) 1,245,531 15,879,049 83,088 954,122 (27,403) - (199,301) 16,689,555 Change in Fund Balance 13,362,452 (199,216) 691,645 (16,680) - 910,326 14,748,527 Fund Balance
Beginning of year, restated 2,419,549 978,239 - 350,043 24,734 3,522,867 7,295,432 End of year $ 779,023 15,782,001 $ 691,645 $ 333,363 $ 24,734 $ 4,433,193 $ 22,043,959 $ Special Revenue Funds
Packet Pg. 134
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 9

CITY OF GONZALES

RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN

FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITES YEAR ENDED JUNE 30, 2024
Net change in fund balance - total governmental funds 14,748,527 $ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated lives and reported as depreciation expense Capital outlay expenditures are therefore added back to fund balances 3,357,743 Depreciation and amortization expense not reported in governmental funds (1,266,273) 2,091,470
Repayment of long-term debt and lease liability is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position 454,863
Issuance of new debt and lease liability is reported as an other financing source in governmental funds, however in the Statement of Activities it is accrued as a long-term debt (9,825,000) Pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds (550,322)
Repayment of long-term loans receivable is revenue in governmental funds, but the repayment reduces long-term assets in the statement of net position. Issuance of long-term loans receivable produces the opposite effect (21,149)
Compensated absence costs in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as expenditures in Governmental Funds (83,908) Change in net position of governmental activities 6,814,481 $ Packet Pg. 135 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) See accompanying notes. 10
CITY OF GONZALES STATEMENT OF NET POSITION – PROPRIETARY FUNDS JUNE 30, 2024 Nonmajor
Electric Total
Solar Power Proprietary
Water Sewer Garbage Energy Authority Funds
ASSETSCurrent assets
Cash and investments 3,666,742 $ 3,607,815 $ 9,271 $ 16,887 $ - $ 7,300,715 $ Accounts receivable, net 184,406 228,397 244,203 - - 657,006 Interest receivable 51,322 14,516 3,918 103 - 69,859
Due from other funds - 985,158 - - - 985,158
Total current assets 3,806,737 4,931,619 257,392 16,990 - 9,012,738 Non-current assets
Advances to other funds 594,000 - - - - 594,000
Property, plant and equipment,
net of allowance for depreciation 8,601,311 7,437,539 - 2,934,006 - 18,972,856 Total non-current assets 8,601,311 8,031,539 - 2,934,006 - 19,566,856 Total assets 12,408,048 12,963,158 257,392 2,950,996 - 28,579,594 DEFERRED OUTFLOWS OF RESOURCES 144,599 144,600 71,807 - - 361,006 LIABILITIESCurrent liabilities
Accounts payable and accrued expenses 35,122 140,291 56,731 - - 232,144 Due to other funds - - 145,405 - - 145,405
Deposits 91,368 - - - - 91,368
Interest payable - - - 2,014 - 2,014
Current portion of long-term debt - - - 408,197 - 408,197 Total current liabilities 140,291 126,490 202,136 410,211 - 879,128 Non-current liabilities
Long-term debt - - - 1,070,653 - 1,070,653
Lease liability 36,376 - - 132,159 - 168,535
Net pension liability 277,447 277,447 137,776 - - 692,670 Total noncurrent liabilities 277,447 313,823 137,776 1,202,812 - 1,931,858 Total liabilities 417,738 440,313 339,912 1,613,023 - 2,810,986 DEFERRED INFLOWS OF RESOURCES 15,265 15,266 7,581 - - 38,112

NET POSITION
Net investment in capital assets 7,437,539 8,601,311 - - - 16,038,850 Restricted for capital improvements 1,162,255 1,895,421 - - - 3,057,676 Unrestricted/(deficit) 1,622,912 4,052,385 (18,294) 1,337,973 - 6,994,976 Total net position $ 12,119,644 12,652,179 $ (18,294) $ 1,337,973 $ - $ 26,091,502 $ Business-Type Activities - Enterprise Funds
Packet Pg. 136
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 11
CITY OF GONZALES STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND NET POSITION – PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2024 Nonmajor
Electric Total
Solar Power Proprietary
Water Sewer Garbage Energy Authority Funds
Operating Revenue
Charges for services $ 2,114,926 2,419,386 $ 1,684,538 $ - $ - $ 6,218,850 $ Total operating income 2,114,926 2,419,386 1,684,538 - - 6,218,850 Operating Expense
Contractual services and utilities 932,793 628,642 1,189,834 78,592 - 2,829,861 Personnel 502,474 505,138 194,915 - - 1,202,527
Supplies and materials 182,218 238,164 16,292 - - 436,674 Depreciation 146,440 272,225 - 52,145 - 470,810
Total operating expense 1,518,384 1,889,710 1,401,041 130,737 - 4,939,872 Operating income/(loss) 596,542 529,676 283,497 (130,737) - 1,278,978 Nonoperating Revenue/(Expense)
Development impact fees - 5,524 - - - 5,524
Interest income 210,067 179,836 9,271 557 - 399,731
Interest expense - (17,946) - (54,791) - (72,737)
Total nonoperating revenue/(expense) 185,360 192,121 9,271 (54,234) - 332,518 Net income/(loss) before transfers 721,797 781,902 292,768 (184,971) - 1,611,496 Operating Transfers In/(Out) (1,218,129) (192,021) (309,812) 474,431 - (1,245,531) Change in Net Position (436,227) 529,776 (17,044) 289,460 - 365,965 Net Position
Beginning of year 12,555,871 12,122,403 (1,250) 1,048,513 - 25,725,537 End of year $ 12,119,644 12,652,179 $ (18,294) $ 1,337,973 $ - $ 26,091,502 $ Business-Type Activities - Enterprise Funds
Packet Pg. 137
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 12
CITY OF GONZALES STATEMENT OF CASH FLOW - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2024 Nonmajor
Electric Total
Solar Power Business-Type
Water Sewer Garbage Energy Authority Funds
Operating Activities
Receipts from customers and users 2,447,166 $ 2,371,045 $ 1,779,391 $ - $ - $ 6,597,602 $ Payments for contractual services and utilities (952,332) (601,839) (1,585,701) (82,734) (14,765) (3,237,371)Payments to employees (540,326) (540,456) (177,873) - - (1,258,655)Payment to suppliers (238,164) (182,218) (16,292) - - (436,674) Net cash provided by (used in) operating activities 772,290 990,586 (475) (82,734) (14,765) 1,664,902 Non-capital Financial Activities
Payments (to)/from developers - 5,524 - - - 5,524Transfers (to)/from other funds (1,218,129) (1,177,179) (164,407) 474,431 - (2,085,284) Net cash provided by (used in)
noncapital financing activities (1,212,605) (1,177,179) (164,407) 474,431 - (2,079,760) Capital and Related Financing Activities
Principal paid on long-term debt and lease liability (575,330) - - (379,325) - (954,655)Interest paid on long-term debt - (17,946) - (55,069) - (73,015) Net cash provided by (used in) capital
and related financing activities (82,207) (593,276) - (434,394) - (1,109,877) Investing Activities
Interest received 190,958 - 14,141 454 566 206,119Payments received on notes 194,043 - - - - 194,043 Net cash provided by (used in)
investing activities 190,958 194,043 14,141 454 566 400,162 Net Increase (Decrease) in Cash (110,183) (807,207) (150,741) (42,243) (14,199) (1,124,573) Cash
Beginning of year 3,717,998 4,473,949 160,012 59,130 14,199 8,425,288 End of year $ 3,607,815 3,666,742 $ 9,271 $ 16,887 $ - $ 7,300,715 $ Business-Type Activities - Enterprise Funds
Packet Pg. 138
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 13
CITY OF GONZALES STATEMENT OF CASH FLOW - PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Nonmajor
Electric Total
Solar Power Business-Type
Water Sewer Garbage Energy Authority Funds
Cash Flows from Operating Activities
Operating income (loss) 529,676 $ 596,542 $ 283,497 $ (130,737) $ - $ 1,278,978 $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 272,225 146,440 - 52,145 - 470,810
(Increase) Decrease in Accounts Receivable 23,820 256,119 94,853 - - 374,792(Increase) Decrease in Deferred Outflows of Resources 41,518 38,981 (15,254) - - 65,245Increase (Decrease) in Accounts Payable and Accrued Liabilities (19, 26,803 539) (395,867) (4,142) (14,765) (407,510) Increase (Decrease) in Deposits 3,960 - - - - 3,960Increase (Decrease) in Net Pension Liability (67, (62,522) 221) 33,045 - - (96,698) Increase (Decrease) in Deferred Inflows of Resources (11,777) (12,149) (749) - - (24,675) Net Cash Provided by (Used in) Operating Activities $ 990,586 772,290 $ (475) $ (82,734) $ (14,765) $ 1,664,902 $ Business-Type Activities - Enterprise Funds
Packet Pg. 139
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 14

CITY OF GONZALES

STATEMENT OF FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2024
Redevelopment
Successor
Agency
Assets
Current assets
Cash and investments 33,140 $
Restricted cash and investments 12,627
Total current assets 45,804
Noncurrent assets
Notes receivable 327,450
Property, plant and equipment,
net of allowance for depreciation 461,051
Total noncurrent assets 788,501
Total assets 834,305
Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,001
Interest payable 77,928
Bonds - current portion 823,173
Total current liabilities 902,102
Noncurrent liabilities
Bonds - long term portion 7,037,769
Total noncurrent liabilities 7,037,769
Total liabilities 7,939,871
Net Position
Held in trust for other governments (7,105,566) $
Packet Pg. 140 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) See accompanying notes. 15

CITY OF GONZALES

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUND
JUNE 30, 2024
Redevelopment
Successor
Agency
Additions
Property taxes 1,182,569 $
Investment earnings 9,220
Total additions 1,191,789
Deductions
Administrative expenses 380,293
Interest and fiscal expenses -
Total deductions 380,293
Change In Net Position 811,496
Net Position
Beginning of year (7,917,062)
End of year $ (7,105,566)
Packet Pg. 141 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 16 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies
Reporting Entity
The City of Gonzales (the City) is a municipal corporation, operating as a general law city, and governed by a city council of five members. As required by accounting principles generally accepted in the United States of America, as prescribed by the Governmental Accounting Standards Board (GASB), these financial statements present the City of Gonzales (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City.

The Gonzales Public Financing Authority (the Authority) is governed by the City Council of the City of Gonzales.

Although, it is legally separate from the City, the Authority is reported as if it were part of the primary government because the City Council is the governing board and is able to impose its will on the Authority and management has the same operational responsibility for the Authority as it does for the rest of the City. The activity of the Authority is included as separate funds in the special revenue fund and debt service fund types. Separate financial statements are not issued by the Authority.

Basis of Presentation
The City has conformed to the pronouncements of the GASB, which are the primary authoritative statements of accounting principles generally accepted in the United States of America applicable to state and local governments.

Government-Wide Financial Statements
The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information of all of the nonfiduciary activities of the primary government and its component units. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements
The accounts of the City are organized on the basis of funds each of which is considered a separate accounting entity.

The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Packet Pg. 142 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 17 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund category - governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. All remaining funds are aggregated and reported as non-major funds.

Governmental Fund Financial Statements Funds
Major funds are defined as funds that have assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type (governmental and enterprise funds, respectively) total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The following types of governmental funds are used:

General Fund
The General fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds
Special revenue funds are used to account for and report the proceeds of specific revenue sources (other than debt service and capital projects) that are restricted or committed to expenditures for specified purposes.

Debt Service Funds
Debt service funds are used to account for and report the financial resources that are restricted, committed or assigned for the payment of long-term debt principal, interest, and related costs.

The City reported the following major governmental funds in the accompanying financial statements:
 General Fund – This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.
 Community Center Capital Project Fund – This fund accounts for grant/contribution monies restricted for the building of the new community center.
 Gonzales Public Financing Debt Authority Fund – This fund accounts for loan proceeds and debt activities restricted for the construction of the new community center.  Community Development Block Grant Fund – This fund accounts for Federal Grant monies restricted for specific community programs, which includes the activity related to loans provided to homeowners and businesses and the repayment of these loans.
 Measure X Fund – The fund is used to account for the City’s Transportation Safety and Investment Plan activities.

Packet Pg. 143 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 18 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Fund Balance Classifications
The City’s fund balance policy establishes the procedures for reporting unrestricted fund balance (comprised of Committed, Assigned, and Unassigned categories) within the City’s governmental funds: General Fund, Special Revenue Funds, Debt Service Fund, and Capital Projects Funds.

Definitions
Fund balance is the difference between the assets and liabilities reported in the City’s governmental funds. There are generally limitations on the purpose for which all or a portion of the resources of a governmental fund may be used.

The force behind these limitations can vary significantly, depending upon their source. Consequently, the fund balance reported in the annual financial statements is categorized into five components whereby each component identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent. The five components of fund balance are as follows:
 Nonspendable: Resources that are 1) not in spendable form, such as inventories, prepaids, long-term receivables, or non-financial assets held for resale, or 2) required to be maintained intact such as an endowment.
 Restricted: Resources that are subject to externally enforceable legal restrictions; these restrictions would be either 1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or 2) imposed by law through constitutional provisions or enabling legislation.
 Committed: Resources that are constrained to specific purposes by a formal action of the City Council such as an ordinance or resolution. The constraint remains binding unless removed in the same formal manner by the City Council. Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be determined subsequently.
 Assigned: Resources that are constrained by the City’s intent to be used for specific purposes, but that are neither restricted nor committed. Intent is expressed by the City Council or to an official which the City Council has delegated this authority.
 Unassigned: Within the General Fund, the residual resources, either positive or negative, in excess of what can be properly classified in one of the other four fund balance categories. Within all other governmental funds, the negative residual resources in excess of what can be properly classified as nonspendable, restricted, or committed.

Policy

1. Unless necessary by other requirements and circumstances, when expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to first apply committed fund balance, then assigned fund balance, and finally unassigned fund balance.

2. The City’s Fund Balance policy delegates to the Finance Director the authority to assign unrestricted fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements.

Packet Pg. 144 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 19 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Change in Net Position, and a Statement of Cash Flows.

Proprietary fund types are accounted for using the “economic resources” measurement focus and accrual basis of accounting. This means that all assets and liabilities (whether current or non-current) associated with the activity are included on the Statement of Net Position. Their reported fund equity presents total net position. The operating statement of the proprietary funds presents increases (revenues) and decreases (expenses) in total net position.

Revenues are recognized when they are earned and expenses are recognized when the liability is incurred.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for sales and services. Operating expenses for the enterprise funds include the costs of sales and services, the costs of employee benefits, maintenance of capital assets, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

The City reported the following major proprietary (enterprise) funds:
 Water Fund - This fund accounts for the activities for providing water service to the residents of the City.  Sewer Fund - This fund accounts for the activities of providing sewer service to the residents of the City.  Garbage Fund - This fund accounts for the activities of providing garbage service to the residents of the City.  Solar Energy Fund – This fund accounts for the activities, the debt and the resources generated from the installation of solar energy panels.

Fiduciary Fund Financial Statements
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governmental units. The City maintains the Private Purpose Trust Fund for the Successor Agency of the former Redevelopment Agency.

Basis of Accounting
The government-wide, proprietary funds and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions are reported as expenditures in governmental funds.

Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources.

Packet Pg. 145 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 20 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services.

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures/expenses. The City's policy is to first apply restricted net position to such programs, followed by unrestricted net position.

Financial Statement Amounts
Cash and Cash Equivalents – The City maintains a pooled cash and investment program. Therefore, for purposes of the statement of cash flows, the City considers the entire pooled cash and investment balance to be cash and cash equivalents.

Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund and certificates of deposit. Investments are recorded at amortized cost or fair value.

Fair value is based upon quoted market prices.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year.

Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

The City pools its cash and investments of all funds with the City’s pool, except for assets held by fiscal agents.

Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.

Accounts Receivable – Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. The Proprietary Funds include a year end accrual for services through the end of the fiscal year which have not yet been billed. Accounts receivable are reported net of an allowance for uncollectibles.

Property taxes in the State of California are administered for all local agencies at the county level, and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:

Packet Pg. 146 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 21 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Property Valuations - are established by the Assessor of the County of Monterey for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100 percent of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.

Tax Levies - are limited to 1 percent of assessed value which results in a tax rate of $1 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

Tax Levy Dates - are attached annually on January 1st, proceeding the fiscal year for which the taxes are levied. The fiscal year begins July 1st and ends June 30th of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

Tax Collections – are the responsibility of the county tax collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments: The first installment is due on November 1st of the fiscal year and is delinquent, if not paid, by December 10th; and the second installment is due on March 1st of the fiscal year and is delinquent, if not paid, by April 10th. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent, if not paid, by August 31st of the fiscal year. Significant penalties are imposed by the County for late payments.

Advances To/From Other Funds – This classification represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation. The current portion of any interfund long-term loan (advance) is included as an interfund receivable/payable.

Capital Assets – Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City’s capitalization threshold are met.

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the GovernmentWide Financial Statements. Capital assets are defined by the government as assets with an initial individual cost of more than $5,000 and with an estimated useful life of at least two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Packet Pg. 147 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 22 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:

Years
Buildings 40
Improvements 20 - 40
Equipment 5 - 15
Infrastructure 20 - 70
Compensated Absences – The City has adopted policies on sick leave and vacation leave. Sick leave is accrued at the rate of eight hours per month by all employees. A portion of the accumulated sick leave will be paid to retiring or resigning employees with a minimum of fifteen years of service. All other employees who terminate employment will receive no compensation for accumulated sick leave.

Employees are only allowed to carry forward one year worth of vacation hours as of January 1 of each year. Vacation is accrued for employees as follows:

Years of Service Monthly Accrual Annually
0 to 2 6-2/3 hours Two weeks
3 to 9 10 hours Three weeks
10 to 15 11-2/3 hours Three weeks and 2-1/2 days
15+ 13-1/3 hours Four weeks
Upon termination of employment and, after completion of at least six months of service with the City, the accrued vacation leave shall be paid to the terminated employee.

Unearned Revenue – Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records unearned revenue related to uncollected outstanding performing loans and intergovernmental revenues received but not earned (qualifying expenditures not yet incurred).

Deferred Compensation Plan – City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this Plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only upon termination, retirement, death, or in an emergency as defined by the Plan. The assets of the Plan are not included within the City's financial statements.

Packet Pg. 148 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 23 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Pension Plan – All full-time City employees are members of the State of California Public Employees’ Retirement System. The City’s policy is to fund all pension costs accrued; such costs to be funded are determined annually as of July 1 by the System’s actuary.

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s Pension Plan and additions to/deductions from the City’s Pension Plan’s fiduciary net position have been determined on the same basis as they are reported by the City’s Pension Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Leases – The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide and enterprise fund financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs.

Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Long-Term Obligations – In the Government-Wide Financial Statements and in the Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund Type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts during the current period.

The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Packet Pg. 149 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 24 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Net Position – The government-wide and business-type activities financial statements utilize a net position presentation. Net position are categorized as net investment in capital assets, restricted and unrestricted.  Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.  Restricted Net Position – This category presents external restrictions on net position imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
 Unrestricted Net Position – This category represents net position of the City not restricted for any project or other purpose.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Note 2 – Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.

In accordance with applicable sections of the California Government Code and the Gonzales Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds. Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered.

Packet Pg. 150 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 25 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 – Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.

Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 30,454,202 $
Private Purpose Trust:

Cash and Investments 33,140
Restricted cash and investments 12,627
Total Cash and Investments $ 30,499,969
Cash and investments as of June 30, 2024 consist of the following:

Cash on hand 1,722 $
Deposits with Financial Institutions 1,328,268
Local Agency Investment Fund 4,620,692
Certificates of Deposit 10,954
Money Market Accounts 13,956,957
Cash Held by Fiscal Agent 10,581,376
Total Cash and Investments $ 30,499,969
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

Level 2: Inputs to valuation methodology include inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Packet Pg. 151 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 26 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 – Cash and Investments (Continued)
Following is a description of the valuation methodologies used for assets measured at fair value.

LAIF is valued based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).

The City had the following recurring fair value measurements as of June 30, 2024:

Level 1 Level 2 Level 3
June 30, 2024
Balance
Investments by fair value level:

Equity Securities:

CDS 10,954 $ - $ - $ 10,954 $
LAIF - 4,620,692 - 4,620,692
Total Equity Securities 10,954 4,620,692 - 4,631,646
Cash equivalents carried at amortized cost:

Deposits 1,329,990
Money Market Mutual Funds 13,956,957
Cash Held by Fiscal Agent 10,581,376
Total cash and equivalents amortized at cost 25,868,323 Total Cash Equivalents & Investments 30,499,969 $
Packet Pg. 152 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 27 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 – Cash and Investments (Continued)
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 270 days 40% 30%
Commercial Paper 180 days 15% 10%
Time Certificates of Deposit 3 years 25% None
Negotiable Certificates of Deposit 3 years 30% None
Repurchase Agreements 1 year 20% None
Medium-Term Notes 5 years 30% 15%
Mutual Funds 5 years 20% 10%
Money Market Mutual Funds 5 years 15% 10%
Local Agency Investment Fund (LAIF) N/A None None
County Investment Pool N/A None None
Authorized Investment Type
Packet Pg. 153 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 28 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 – Cash and Investments (Continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
Authorized Investment Type
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 to 60 More than
Fair Value or Less Months Months 60 Months
Local Agency Investment Fund 4,620,692 $ 4,620,692 $ - $ - $ - $ Certificates of deposit 10,954 10,954 - - -
Total $ 4,631,646 4,631,646 $ - $ - $ - $
Investment Type
Remaining Maturity (in months)
Packet Pg. 154 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 29 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 – Cash and Investments (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type:

Minimum
Rating Unrated Aaa
Local Agency Investment Fund $ N/A 4,620,692 4,620,692 $ - $ Certificates of deposit 10,954 N/A - 10,954
Total $ 4,631,646 4,631,646 $ - $
Investment Type
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There were no investments in any one issuer, other than U.S.

Treasury securities, mutual funds, and external investment pools, that represent 5% or more of total City-wide investments as of June 30, 2024.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

At June 30, 2024, the balances held in bank accounts were (comprised of deposits, CD’s and money market accounts) collateralized by the pledging financial institution, but not in the City’s name. At June 30, 2024, total cash held in bank was $1,703,799 of which $1,453,799 was in excess of federal depository insurance limits.

Packet Pg. 155 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 30 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 – Cash and Investments (Continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee comprised of California State officials and various participants provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. The City is a voluntary participant in the investment pool.

Note 4 – Notes Receivable and Deferred Loans Receivable Loans as of fiscal year ended June 30, 2024 were as follows:

Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Governmental Funds
Developer Loans 110,046 $ - $ - $ 110,046 $
Rehabilitation Loans 1,731,497 - (21,149) 1,710,348
$ - 1,841,543 $ (21,149) $ 1,820,394 $
Packet Pg. 156 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 31 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 4 – Notes Receivable and Deferred Loans Receivable (Continued) Developer Loans
Original Balance as of
Date of Note Principal Interest Rate Maturity Date Collateral June 30, 2024 February 19, 2008 836,120 $ 4% January 1, 2028 Deed of Trust $ 110,046 Rehabilitation Loans
Original Balance as of
Date of Note Principal Interest Rate Maturity Date Collateral June 30, 2024 May 24, 2006 132,400 $ 2% May 24, 2036 Deed of Trust 132,400 $ May 24, 2006 50,000 2% May 24, 2036 Deed of Trust 50,000 May 24, 2006 17,500 2% May 24, 2036 Deed of Trust 17,500 May 24, 2006 50,000 2% May 24, 2036 Deed of Trust 50,000 May 24, 2006 50,000 2% May 24, 2036 Deed of Trust 50,000 May 24, 2006 50,000 2% May 24, 2036 Deed of Trust 50,000 May 24, 2006 50,000 2% May 24, 2036 Deed of Trust 50,000 May 24, 2006 50,000 2% May 24, 2036 Deed of Trust 50,000 May 24, 2006 50,000 2% May 24, 2036 Deed of Trust 50,000 November 18, 2008 111,184 3% November 18, 2038 Deed of Trust 121,898 December 23, 2008 97,346 3% December 23, 2038 Deed of Trust 97,346 April 18, 2014 59,486 0% April 18, 2044 Deed of Trust 60,089 August 25, 2014 38,531 0% August 25, 2044 Deed of Trust 38,531 October 21, 2014 89,715 0% October 21, 2044 Deed of Trust 89,715 May 1, 2012 105,000 3% May 1, 2022 Security Agreement 24,413 April 11, 2014 91,511 3% April 11, 2024 Security Agreement 69,466 September 30, 2015 175,000 2% September 30, 2030 Security Agreement 114,805 June 8, 2017 104,777 3% June 8, 2027 Security Agreement 77,253 July 24, 2019 70,000 2% July 24, 2031 Security Agreement 67,151 December 21, 2021 115,000 1% December 21, 2023 Security Agreement 115,000 June 10, 2022 55,000 1% June 10, 2038 Security Agreement 53,447 August 24, 2022 100,000 1% December 21, 2038 Security Agreement 98,970 May 12, 2004 43,500 3% March 12, 2024 Deed of Trust 19,690 July 22, 2008 48,643 0% July 22, 2023 Deed of Trust 36,943 April 8, 2008 23,802 0% April 8, 2023 Deed of Trust 14,514 July 8, 2008 57,440 0% July 8, 2023 Deed of Trust 7,500 March 5, 2009 16,000 0% March 5, 2024 Deed of Trust 13,226 February 19, 2008 170,000 4% February 19, 2028 Deed of Trust 90,491 $ 1,710,348

Packet Pg. 157 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 32 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 5 – Capital Assets – Capital asset activities for the year ended June 30, 2024 were as follows:

Balance Balance
July 1, 2023 Additions Retirements June 30, 2024
Governmental Activities
Capital assets, not being depreciated
Land 8,342,583 $ - $ - $ 8,342,583 $
Construction in progress 3,357,743 595,151 - 3,952,894
Total capital assets, not being depreciated 3,357,743 8,937,734 - 12,295,477 Capital assets, being depreciated
Buildings and improvements 10,563,825 - - 10,563,825
Infrastructure 36,520,519 - - 36,520,519
Machinery and equipment - 2,940,599 - 2,940,599
Total capital assets, being depreciated - 50,024,943 - 50,024,943 Less accumulated depreciation for
Buildings and improvements (3,473,453) (264,722) - (3,738,175) Infrastructure (26,301,059) (857,563) - (27,158,622)
Machinery and equipment (2,770,545) (87,335) - (2,857,880) Total accumulated depreciation (1,209,620) (32,545,057) - (33,754,677) Total capital assets, being depreciated, net (1,209,620) 17,479,886 - 16,270,266 Right of use assets, being amortized
Vehicles 283,268 - - 283,268
Less: amortization (56,653) (142,437) - (199,090)
Total right of use assets, being amortized, net (56,653) 140,831 - 84,178 Governmental activities capital assets, net $ 2,091,470 26,558,451 $ - $ 28,649,921 $ Business-Type Activities
Capital assets, not being depreciated
Land 2,872,931 $ - $ - $ 2,872,931 $
Construction in progress - 2,268,124 (2,268,124) -
Total capital assets, not being depreciated - 5,141,055 (2,268,124) 2,872,931 Capital assets, being depreciated
Buildings and improvements 46,939 - - 46,939
Infrastructure 23,911,474 2,268,124 - 26,179,598
Machinery and equipment 82,207 446,294 - 528,501
Total capital assets, being depreciated 2,350,331 24,404,707 - 26,755,038 Less: accumulated depreciation (436,549) (10,338,709) - (10,775,258) Total capital assets, being depreciated, net 1,913,782 14,065,998 - 15,979,780 Right of use assets, being amortized
Improvements 143,525 - - 143,525
Vehicles 147,483 - - 147,483
Less: amortization (34,261) (136,602) - (170,863)
Total right of use assets, being amortized, net (34,261) 154,406 - 120,145 Business-type activities capital assets, net $ 1,879,521 19,361,459 $ (2,268,124) $ 18,972,856 $ Packet Pg. 158 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 33 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 5 – Capital Assets (Continued)
Depreciation expense was charged to the following functions in the Statement of Activities:

Government Activities:

General Government 26,534 $
Public Safety 143,237
Public Works 522,657
Parks and Recreation 268,098
Community Development 249,094
$ 1,209,620
Business-Type Functions:

Water 272,225 $
Sewer 146,440
Solar 52,145
$ 470,810
Note 6 – Interfund Receivables, Payables and Transfers
Due From/To Other Funds
Current interfund balances and other short-term borrowings between funds were attributed to negative cash balances and are expected to be repaid shortly after the end of the fiscal year. The following is a summary of interfund balances as of June 30, 2024.

Due From Due To
Major Governmental Funds:

Water Fund 985,158 $ - $
Garbage Fund - 145,405
Nonmajor Governmental Funds:

Infrastructure Improvement Fund - 493,608
Supplemental Local Law Enforcement - 36,807
Housing Successor - 190,218
California Breeze Maintenance District - 116,646
Gas Tax Fund - 2,474
$ 985,158 985,158 $
Advances
During fiscal year 2009-2010 the City of Gonzales formalized an advance agreement between the City’s General Fund and the Water Fund for the amount of $594,000. The amount is payable by the General Fund to the Water Fund over a period of 20 years at an interest rate of 1 percent payable in annual payments of $33,057. During the fiscal year 2023- 2024, the General Fund did not make any payments.

Packet Pg. 159 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 34 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 6 – Interfund Receivables, Payables and Transfers (Continued) Interfund Transfers
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds’ that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due. In general, the effect of the interfund activity has been eliminated from the government-wide financial statements.

Transfers In Transfers Out
Major Governmental Funds:

General Fund 83,088 $ - $
Community Center Capital Project Fund 10,260,025 -
Public Financing Authority - (8,870,878)
CDBG Block Grant - (27,403)
Proprietary Funds:

Water - (192,021)
Sewer - (1,218,129)
Garbage - (309,812)
Solar Energy 474,431 -
Nonmajor Governmental Funds:

Supplemental Local Law Enforcement Fund - (302,871)
Public Safety Fund 173,972 -
California Breeze Maintenance District Fund - (19,000)
Canyon Creek Park Maintenance District Fund - (15,000)
Cipriani Estates Park & Maintenance District Fund - (10,000) Gonzales Industrial Park Landscape & Maintenance Fund - (10,000) CDBG Urban County Grant Fund - (16,402)
$ (10,991,516) 10,991,516 $
The following describe the significant transfers made during the year:
 The Supplemental Local Law Enforcement Fund transferred $302,871 to the Public Safety Fund in order to finance various programs.
 Various nonmajor funds transferred $97,805 to the General Fund, principally as reimbursements to the General Fund for various costs including administrative costs.
 The Public Financing Authority transferred $8,870,878 to the Community Center Capital Project Fund, to cover future costs related to the construction of the new community center building.  Public Safety Fund transferred $128,899 to General Fund to reimburse costs related to safety.  Sewer Fund transferred $954,122, $150,000, and $114,007 to Public Financing Authority, Water, and Solar Fund, respectively, to cover expansion related costs related to the Community Center.

Packet Pg. 160 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 35 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 – Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

Long-term debt payable at June 30, 2024 was comprised of the following individual issues:

Balance Balance Current
July 1, 2023 Additions Retirements June 30, 2024 Portion Governmental Activities Long Term Debt
Direct Financing:
2024A Lease Revenue Bonds $ 9,825,000 - $ - $ 9,825,000 $ - $ Direct Borrowings:

Pool Site Financed Purchase 878,124 - (61,496) 816,628 106,896 Note Payable
TAMC Measure X Note Payable 1,246,297 - (336,665) 909,632 312,361 Total Governmental Activities Debt $ 2,124,421 9,825,000 $ (398,161) $ 11,551,260 $ 419,257 $ Business-Type Activities Long Term Debt
Direct Borrowings:

Note Payable
2005 Water Tank & Sewer Expansion Refinance 545,793 $ - $ (545,793) $ - $ - $ Solar Panel Energy Financed Purchase 1,011,632 - (265,159) 746,473 290,720 Solar Panel Energy Financed Purchase - 846,543 (114,166) 732,377 117,477 Total Business-Type Activities Debt $ 2,403,968 - $ (925,118) $ 1,478,850 $ 408,197 $ Compensated Absences
Governmental Activities $ 83,908 359,145 $ - $ 443,053 $ Net Pension Liability
Governmental Activities $ 589,672 3,452,243 $ - $ 4,041,915 $ Business-type Activities $ 789,368 - $ (96,698) $ 692,670 $ 2020A Lease Revenue Bonds– On May 22, 2024, the City entered into an agreement with the Gonzales Public Financing Authority for $9,825,000 at 3.95% interest rate. Proceeds go towards financing the construction of a new community center, which would include teen innovation center, community meeting rooms, library, performing arts place, a community hall, offices and commercial kitchen and other amenities. Principal and interest payments are made semi-annually on November 1st and May 1st until May 1, 2044.

Packet Pg. 161 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 36 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 – Long-Term Debt (Continued)
Pool Site Financed Purchase – On March 1, 2016, the City entered into an agreement with the Gonzales Public Financing Authority to purchase the pool site for $1,575,000 at 2.88% interest rate. Purchase agreement terminates on February 1, 2031.

TAMC Measure X Loan – On August 23, 2017, the City entered into a project loan agreement for the street rehabilitation. The amount financed was $2,500,000 at 2.5% and monthly payments are determined by the lender. 2005 Water Tank & Sewer Expansion Refinance – On November 1, 2005, the Gonzales Public Financing Authority entered into a funding agreement with a financial institution to provide $3,131,500 for the Sewer Expansion and Water Tank Projects (the Project). The Note accrues interest at a rate of 4.55 percent. Principal and interest payments are due semi-annually on June 30th and December 30th.

The Financing Authority simultaneously entered into an installment sale agreement with the City of Gonzales where the Authority sells the Project to the City and the City purchases the Project from the Authority. The installment sale agreement accrues interest at the rate of 4.55 percent (the same rate as the Note) and the City is required to make semi-annual installment payments to the Authority in the same amounts due under the Note. The Authority has assigned the right to receive these installment payments to the Note holder.

In June of 2012, the above note was refinanced. The amount financed was $2,475,000 at the interest rate of 3.35 percent and payable in semi-annual installments on December 29th and June 29th of each year beginning on December 29, 2012.

Solar Panel Energy Financed Purchase – In February of 2012, the City entered into a purchase agreement for the purchase of Solar Panels. The amount financed was $2,697,589 and is payable over a 14-year term with payments commencing in October of 2012.

Solar Panel Energy Financed Purchase – In March of 2016, the City entered into a lease purchase agreement for the purchase of Solar Panels. The amount financed was $1,679,189 and is payable over a 15-year term with payments commencing in August of 2016.

The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2024 were as follows:

Years ending June 30, Principal Interest Principal Interest 2025 419,257 $ 395,853 $ 408,198 $ 44,138 $
2026 430,166 422,674 411,549 27,848
2027 775,288 411,479 124,392 18,093
2028 516,471 386,060 128,000 14,485
2029 534,849 366,882 131,712 10,772
2030-2034 2,590,229 1,534,564 275,000 9,971
2035-2039 2,840,000 1,025,818 - -
2040-2044 419,096 3,445,000 - -
$ 11,551,260 4,962,425 $ 1,478,850 $ 125,306 $
Governmental Activities Business-Type Activities
Packet Pg. 162 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 37 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 – Lease Liability
Balance Balance Current
July 1, 2023 Additions Retirements June 30, 2024 Portion Lease Liability
Governmental Activities
Vehicles $ 141,147 - $ (56,702) $ 84,445 $ 56,815 $
Total Governmental Activities Lease Liability $ 141,147 - $ (56,702) $ 84,445 $ 56,815 $ Business-type Activities
Improvements 132,169 $ - $ - $ 132,169 $ 10,920 $
Vehicles 65,913 - (29,537) 36,376 29,537
Total Business-type Activities Lease Liability $ 198,082 - $ (29,537) $ 168,545 $ 40,457 $ The City entered into several sixty (60) month lease agreements as lessee for the acquisition and use of vehicles.

An initial lease liability was recorded in the amount of $430,751 during the year the lease was entered. As of June 30, 2024, the value of the lease liability was $207,060. The City is required to make monthly principal and interest payments of $411 to $6,873. The lease has an interest rate of 0.9%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $120,426 and had accumulated amortization of $310,324.

On March 2012, the City entered into a lease agreement with a Winery, for the rental of their rooftops in connection with the solar panels purchased by the City. The lease rental payments are equal to $5,000 annually for the first ten years and $10,000 for the sixteenth year at 3% interest, with a three percent annual escalator applied to each subsequent year of the agreement which terminates on December 31, 2042.

The future principal and interest lease payments as of June 30, 2024, were as follows:

Years ending June 30, Principal Interest Principal Interest 2025 56,815 $ 117 $ 41,819 $ - $
2026 27,630 29 11,603 3,911
2027 - - 6,269 3,835
2028 - - 6,460 3,731
2029 - - 6,656 3,540
2030-2034 - - 36,445 14,631
2035-2039 - - 42,335 8,914
2040-2043 - - 16,956 2,400
$ 84,445 146 $ 168,545 $ 7,746 $
Governmental Activities Business-Type Activities

Packet Pg. 163 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 38 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 9 – Fund Balance
The following is a summary of deficit fund balances as of June 30, 2024:

Major Enterprise Funds:

Garbage Fund (18,294) $
Nonmajor Funds:

Infrastructure Improvements Fund (493,608)
Housing Successor (190,218)
California Breeze Maintenance District (128,808)
This deficit is expected to be relieved from future revenues or transfers from other funds.

Note 10 – Deferred Outflows/Inflows of Resources
GASB No. 65 establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows or resources, certain items that were previously reported as assets and liabilities.

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows or resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item to report in this category:
 The City has $2,467,571 in pension related items that qualify to be reported in deferred outflows of resources.

The pension related deferred outflows of resources are described in Note 13.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items to report in this category:
 The City has $260,504 in pension related items that qualify to be reported in deferred inflows of resources. The pension related deferred inflows of resources are described in Note 13.

Unavailable revenues arise only under a modified accrual basis of accounting and is reported only in the governmental funds balance sheet. The City has $1,820,394 in notes and loans receivable reported as deferred inflows of resources reported for unavailable revenues. Of this amount $1,527,985, $110,046, and $182,363 is reported in the Community Block Grant Fund, Infrastructure Improvements Fund, and Housing Successor Fund, respectively. See Note 4 for details.

Packet Pg. 164 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 39 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 11 – Commitments and Contingencies
General
The City participates in a number of Federal and State assisted grant programs which are subject to financial and compliance audits. Audits for these programs and the respective findings are to be determined at a future date, and the City expects the amount, if any, of the expenditures which may be disallowed by the granting agency to be immaterial.

The City is a defendant in various lawsuits and claims. The City attorney anticipates that actual or potential claims against the City, not covered by insurance, would not materially affect the financial position of the City.

Note 12 – Risk Management
The City provides for workers' compensation and liability through a self-funded joint powers agency, Monterey Bay Area Self Insurance Authorities. Joint Powers Agreement (JPA) accounts are not separately maintained for each participant.

Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the Monterey Bay Area Self Insurance Authority (MBASIA). MBASIA is composed of 10 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of MBASIA is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverage.

General Liability: The City is self-insured for the first $10,000 of each liability claims. Claims above $10,000 up to $499,000 are paid by MBASIA. Claims above $499,000 up to $20 million are covered by insurance purchased by MBASIA.

Workers’ Compensation: The City does not retain a self-insured portion of workers’ compensation claims. Annual premiums for coverage up to statutory levels are paid to MBASIA based on the level of claims activity. A third party claims administrator is contracted by MBASIA to manage claims activity.

Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded insured coverage. There have been no significant reductions in insured liability coverage from coverage in the prior year. Audited financial statements for MBASIA can be obtained from their management at 100 Pine Street, 11th Floor, San Francisco, CA 94111.

Packet Pg. 165 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 40 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 13 – Pension Plan
Plan Description – The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office - 400 P Street - Sacramento, CA 95814.

Funding Policy – Active plan members in the Plan are required to contribute 7% of their covered salary for both miscellaneous and public safety members. The City contributes 3.5% of the employees required share of 7%. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for the fiscal year ended June 30, 2024 was 10.100%,

16.450%, 7.680%, and 10.850% for the miscellaneous, safety, PEPRA miscellaneous, and PEPRA safety, respectively.

The contribution requirements of plan members are established by State statute and the employer contribution is established and may be amended by PERS.

The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:

Miscellaneous Safety
Hire Date
Prior to
January 1, 2013
Prior to
January 1, 2013
Benefit Formula 2.0% at 60;
maximum 2%
COLA

2.0% at 55;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 60 55
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.00% 7.00%
Required Employer Contribution Rates 10.100% 16.450%
PEPRA
Miscellaneous
PEPRA Safety
Police and Fire
Hire Date
On or after
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.0% at 62;
maximum 2%
COLA

2.0% at 57;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 62 57
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.75% 11.00%
Required Employer Contribution Rates 7.680% 10.850%
Packet Pg. 166 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 41 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 13 – Pension Plan (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all employers be determined on an annual basis by the actuary and shall be effective on July 1 following the notice of change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2024, $690,096 in contributions was recognized as part of the pension expense.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net pension liability as follows:

Proportionate Share of
Net Pension Liability
Total Net Pension Liability – Miscellaneous $ 2,421,545 Total Net Pension Liability – Safety $ 2,313,040
General Information about the Pension Plan
The City’s net pension liability is measured as the proportionate share of the net pension liability. The net pension liability of each Plan is measured as of June 30, 2023, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:

Miscellaneous Safety
Proportion – June 30, 2023 0.04722% .02957%
Proportion – June 30, 2024 0.04843% .03094%
Change – Increase/(Decrease) 0.00121% .00137%

Packet Pg. 167 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 42 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 13 – Pension Plan (Continued)
For the year ended June 30, 2024, the City recognized pension expense of $1,210,329. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date 716,133 $ - $
Change in employer's proportion 416,975 -
Changes of assumptions 281,192 -
Difference between employer's contributions and
proportionate share of contributions 51,136 (226,776)
Differences between projected and actual investment
earnings - 708,609
Differences between expected and actual
experience (33,728) 293,526
Total 2,467,571 $ (260,504) $
The $716,133 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2025 539,987 $
2026 357,868
2027 572,991
2028 20,087
Total 1,490,933 $
Packet Pg. 168 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 43 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 13 – Pension Plan (Continued)
Actuarial Methods and Assumptions – The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS' Membership
Date for all Funds
1 Post Retirement Benefit
Increase
Contract COLA up to 2.30% until
Purchasing Power Protection
Allowance Floor on Purchasing Power
applies
1 The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2018 valuation was based on the results of an December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015), including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website.

Change of assumptions – None.

Packet Pg. 169 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 44 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 13 – Pension Plan (Continued)
Discount rate – The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. The long-term expected real rates of return by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2023.

The table below reflects long-term expected real rates of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The geometric rates of return are net of administrative expenses.

Asset Class
New Strategic
Allocation
Real Return
Years 1-101,2
Global Equity - cap-weighted 30% 4.45%
Global Equity - noncap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage. -5% -0.59%
Total 100%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study.

Packet Pg. 170 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 45 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 13 – Pension Plan (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculating using the discount rate of each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90%) or 1-percentage point higher (7.90%) than the current rate:
1% Decrease
(5.90%)
Current Discount
Rate
(6.90%)
1% Increase
(7.90%)
Miscellaneous 3,874,185 $ 2,421,545 $ 1,225,898 $
Safety 3,780,155 $ 2,313,040 $ 1,113,569 $
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issue CalPERS financial reports.

Note 14 – Excess of Expenditures over Appropriations
The excess of expenditures over appropriations are as follows:

General Fund:

Current:

General government $ 150,719
Public safety $ 244,584
Public works $ 28,033
Community development $ 156,786
Debt service:

Principal $ 34,220
Measure X:

Debt service:

Principal $ 5,278
The excess of expenditures over appropriations are covered by excess revenues over appropriations and available fund balance in the corresponding funds.

Note 15 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through April 30, 2025, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2024 that required recognition or disclosure in such financial statements.

Packet Pg. 171 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 46 CITY OF GONZALES

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 16 – Restatement of Beginning Fund Balance
A. Fund Reclassifications
During the fiscal year ended 2024, the City conducted an annual review of its fund structure. As part of this review and in compliance with GASB Statement No. 100, Accounting Changes and Error Corrections, the City identified necessary reclassifications to enhance transparency, improve financial reporting accuracy, and ensure consistency with updated accounting standards. As a result, the following funds were reclassified:

General Fund
Community Center
Capital Project Fund
Fund Balance, June 30, 2023, as previously reported 3,397,788 $ - $ Change from major to major fund (2,419,549) 2,419,549
Fund Balance, July 1, 2023, as restated 978,239 $ 2,419,549 $ Fund Financial Statements
These reclassifications have been applied retrospectively to prior-period financial statements for comparability.

The following table summarizes the impact of these reclassifications on beginning fund balances and net position:

Fund Name Previous Classification New Classification Reason for Reclassification Community Center Capital Project Fund Major Major
Segregating Community
Center Capital Project Fund
that was previously grouped
in the General Fund
Packet Pg. 172 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report)

REQUIRED SUPPLEMENTARY INFORMATION
Packet Pg. 173 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 47 CITY OF GONZALES

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes and assessments 6,036,191 $ 6,036,191 $ 6,003,707 $ (32,484) $ Licenses, permits and impact fees 266,750 266,750 225,562 (41,188) Intergovernmental 280,800 280,800 337,352 56,552
Charges for services 103,000 103,000 74,039 (28,961)
Fines and forfeitures 69,000 69,000 18,981 (50,019)
Use of money and property 85,000 85,000 86,351 1,351
Other 336,800 336,800 336,619 (181)
Total revenue 7,177,541 7,177,541 7,082,611 (94,930)
Expenditures
Current
General government 636,332 636,332 787,050 (150,718)
Public safety 4,527,721 4,527,721 4,772,305 (244,584)
Public works 213,950 213,950 241,983 (28,033)
Parks and recreation 979,137 979,137 949,090 30,047
Community development 293,830 293,830 450,616 (156,786) Debt service
Principal 103,883 103,883 138,103 (34,220)
Interest and fiscal charges 25,768 25,768 25,768 -
Total expenditures 6,780,621 6,780,621 7,364,915 (584,294) Revenue over (under) expenditures 396,920 396,920 (282,304) (679,224) Other Financing Sources
Sale of assets 10,000 10,000 - (10,000)
Transfers in (out) - net (406,920) (406,920) 83,088 490,008 Net Change in Fund Balance $ - - $ (199,216) $ (199,216) Fund Balance
Beginning of year, restated 978,239
End of year $ 779,023
Packet Pg. 174 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 48 CITY OF GONZALES

BUDGETARY COMPARISON SCHEDULE

COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Loan repayments 20,000 $ 20,000 $ 21,148 $ 1,148 $
Use of money and property 10,000 10,000 22,537 12,537
Total revenue 30,000 30,000 43,685 13,685
Expenditures
Public works 5,000 5,000 7,503 (2,503)
Community development 5,000 5,000 25,459 (20,459)
Total expenditures 10,000 10,000 32,962 (22,962)
Revenue over expenditures 20,000 20,000 10,723 (9,277)
Other Financing Sources/(Uses)
Transfers in/(out) - net (27,403) (27,403) (27,403) -
Change in Fund Balance $ (7,403) (7,403) $ (16,680) $ (9,277) Fund Balance
Beginning of year 350,043
End of year $ 333,363

Packet Pg. 175 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 49 CITY OF GONZALES

BUDGETARY COMPARISON SCHEDULE

MEASURE X FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes and assessments $ 335,000 335,000 $ 336,666 $ 1,666 $ Total revenue 335,000 335,000 336,666 1,666
Expenditures
Debt service
Principal 289,000 289,000 294,278 (5,278)
Interest 46,000 46,000 42,388 3,612
Total expenditures 335,000 335,000 336,666 (1,666)
Change in Fund Balance $ - - $ - $ -
Fund Balance
Beginning of year 24,734
End of year $ 24,734
Packet Pg. 176 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 50 CITY OF GONZALES SCHEDULE OF THE CITY’S NET PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS* YEAR ENDED JUNE 30, 2024 Proportion of the net pension
liability
Proportionate share of the net
pension liability
Covered -
employee
payroll
Proportionate share of the net pension
liability as a percentage of
covered-employee payroll
Plan's fiduciary net
position
Plan's fiduciary net
position as a percentage of
the Total Pension Liability
2015 0.05204% 1,286,053 $ 1,112,163 $ 115.64% 4,587,216 $ 78.100% 2016 0.03955% 1,084,895 $ 982,675 $ 110.40% 5,044,102 $ 82.298% 2017 0.03916% 1,360,265 $ 947,145 $ 143.62% 4,725,496 $ 77.648%2018 0.03895% 1,535,641 $ 1,378,772 $ 111.38% 5,518,046 $ 78.229% 2019 0.01890% 712,326 $ 1,366,906 $ 52.11% 4,468,191 $ 86.250% 2020 0.03936% 1,576,056 $ 1,678,041 $ 93.92% 6,694,872 $ 80.945% 2021 0.04195% 1,769,575 $ 1,820,163 $ 97.22% 6,952,747 $ 79.712% 2022 0.03965% 752,859 $ 1,917,739 $ 39.26% 8,606,543 $ 91.956%2023 0.04722% 2,209,444 $ 1,561,819 $ 141.47% 8,118,682 $ 78.608% 2024 0.04843% 2,421,545 $ 1,750,224 $ 138.36% 8,319,199 $ 77.455% 2015 0.02316% 868,678 $ 992,049 $ 87.56% 3,422,038 $ 79.750%2016 0.01684% 693,833 $ 1,039,081 $ 66.77% 3,797,755 $ 84.550%2017 0.02010% 1,040,872 $ 1,098,540 $ 94.75% 4,298,623 $ 84.550% 2018 0.02090% 1,248,529 $ 1,181,291 $ 105.69% 4,968,043 $ 79.916% 2019 0.02135% 1,252,487 $ 1,297,002 $ 96.57% 5,511,384 $ 81.483% 2020 0.02256% 1,408,172 $ 1,395,445 $ 100.91% 6,011,305 $ 81.021% 2021 0.02444% 1,628,411 $ 1,509,649 $ 107.87% 6,814,985 $ 80.714% 2022 0.01700% 596,588 $ 1,579,112 $ 37.78% 8,385,699 $ 93.358% 2023 0.02957% 2,032,166 $ 1,806,192 $ 112.51% 7,951,687 $ 79.645% 2024 0.03094% 2,313,040 $ 2,095,818 $ 110.36% 8,381,608 $ 78.372% Miscellaneous
Safety
Packet Pg. 177
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial 51 CITY OF GONZALES SCHEDULE OF CONTRIBUTIONS LAST 10 YEARS* YEAR ENDED JUNE 30, 2024 Contractually required
contribution (actuarially
determined)
Contributions in relation to the
actuarially determined
contributions
Contributions
deficiency
(excess) Covered-employee payroll
Contributions as a
percentage of coveredemployee payroll
2015 160,656 $ (160,656) $ - $ 1,112,163 $ 14.45%
2016 137,778 $ (137,778) $ - $ 982,675 $ 14.02%
2017 185,525 $ (185,525) $ - $ 947,145 $ 19.59%
2018 231,233 $ (231,233) $ - $ 1,378,772 $ 16.77%
2019 149,308 $ (149,308) $ - $ 1,366,906 $ 10.92%
2020 189,303 $ (189,303) $ - $ 1,678,041 $ 11.28%
2021 232,321 $ (232,321) $ - $ 1,820,163 $ 12.76%
2022 263,908 $ (263,908) $ - $ 1,917,739 $ 13.76%
2023 290,579 $ (290,579) $ - $ 1,561,819 $ 18.61%
2024 286,691 $ (286,691) $ - $ 1,750,224 $ 16.38%
2015 161,844 $ (161,844) $ - $ 992,049 $ 16.31%
2016 152,643 $ (152,643) $ - $ 1,039,081 $ 14.69%
2017 159,930 $ (159,930) $ - $ 1,098,540 $ 14.56%
2018 185,473 $ (185,473) $ - $ 1,181,291 $ 15.70%
2019 193,362 $ (193,362) $ - $ 1,297,002 $ 14.91%
2020 235,139 $ (235,139) $ - $ 1,395,445 $ 16.85%
2021 274,368 $ (274,368) $ - $ 1,509,649 $ 18.17%
2022 305,992 $ (305,992) $ - $ 1,579,112 $ 19.38%
2023 351,533 $ (351,533) $ - $ 1,806,192 $ 19.46%
2024 403,405 $ (403,405) $ - $ 2,095,818 $ 19.25%
Miscellaneous
Safety
Packet Pg. 178
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial

SUPPLEMENTAL ONLY INFORMATION
Packet Pg. 179 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) See accompanying notes. 52
CITY OF GONZALES COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2024 California Canyon Creek
Supplemental Ag Industrial Breeze Park &
Infrastructure Gas Local Law Public Park Federal Housing Maintenance Maintenance Improvements Tax Enforcement Safety Grant AQMD Successor District District ASSETS
Cash and investments - $ - $ - $ 729 $ 5,159 $ - $ - $ - $ 1,963,834 $ Due from other governments - 19,672 36,807 4,093 - - - - - Interest receivable - - - 7 18 - - 1,839 13,900
Notes and loans receivable - 110,046 - - - - 182,363 - - Total assets $ 19,672 110,046 $ 36,807 $ 4,829 $ 5,177 $ - $ 182,363 $ 1,839 $ 1,977,734 $

LIABILITIES
Accounts payable and accrued expense - 13,695 - 4,822 - - - 14,001 2,812 Due to other funds 2,474 493,608 36,807 - - - 190,218 116,646 - Total liabilities 16,169 493,608 36,807 4,822 - - 190,218 130,647 2,812

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 110,046 - - - - 182,363 - -
Total deferred inflows of resources - 110,046 - - - - 182,363 - -

FUND BALANCE
Restricted
Lighting, landscape & park maintenance - - - - - - - - 1,974,922 Community development - - - - 5,177 - - - -
Street improvements - 3,503 - - - - - - -
Public safety - - - - - - - - -
Unassigned - (493,608) - 7 - - (190,218) (128,808) -
Total fund balance (493,608) 3,503 - 7 5,177 - (190,218) (128,808) 1,974,922 Total liabilities, deferred inflows
of resources and fund balance 110,046 $ 19,672 $ 36,807 $ 4,829 $ 5,177 $ - $ 182,363 $ 1,839 $ 1,977,734 $ Special Revenue
Packet Pg. 180
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 53
CITY OF GONZALES COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 Cipriani Gonzales
Estates Park & Industrial Park Intersection Circulation American Maintenance Landscape & Improvements Police Park Fire System Rescue District Maintenance Impact Fees Impact Fees Impact Fees Impact Fees Impact Fees Plan ASSETS
Cash and investments 819,161 $ 583,537 $ - $ 35,011 $ 8,767 $ 9,308 $ 267,248 $ - $ Due from other governments - - - - - - - -
Interest receivable 7,247 4,514 - 124 31 33 1,196 -
Notes and loans receivable - - - - - - - -
Total assets $ 588,051 826,408 $ - $ 35,135 $ 8,798 $ 9,341 $ 268,444 $ - $

LIABILITIES
Accounts payable and accrued expense 1,703 1,772 - - - - - -Due to other funds - - - - - - - - Total liabilities 1,772 1,703 - - - - - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - - - - -
Total deferred inflows of resources - - - - - - - -

FUND BALANCE
Restricted
Lighting, landscape & park maintenance 824,705 586,279 - - - - - - Community development - - - - 8,798 - - -
Street improvements - - - - - - 268,444 -
Public safety - - - 35,135 - 9,341 - -
Unassigned - - - - - - - -
Total fund balance 824,705 586,279 - 35,135 8,798 9,341 268,444 - Total liabilities, deferred inflows
of resources and fund balance 826,408 $ 588,051 $ - $ 35,135 $ 8,798 $ 9,341 $ 268,444 $ - $ Special Revenue
Packet Pg. 181
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 54
CITY OF GONZALES COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 Storm Enhanced Total
Drainage Public Public Uses Sphere of CDBG Infrastructure Non-major Facility Facilities Mitigation Influence General Plan SB1 Urban Financing Governmental Impact Fees Impact Fees Fees Impact Fees Impact Fees Road County Grant District Funds ASSETS
Cash and investments 35,567 $ 52,714 $ 3,870 $ 285,730 $ 86,144 $ 375,965 $ 336,959 $ 306,678 $ 5,176,381 $ Due from other governments - - - - - 38,390 - - 98,962
Interest receivable 126 805 14 2,211 306 1,744 1,197 1,096 36,408 Notes and loans receivable - - - - - - - - 292,409
Total assets $ 53,519 35,693 $ 3,884 $ 287,941 $ 86,450 $ 416,099 $ 338,156 $ 307,774 $ 5,604,160

LIABILITIES
Accounts payable and accrued expense - $ - $ - $ - $ - $ - $ - $ - $ 38,805 $ Due to other funds - - - - - - - - 839,753
Total liabilities - - - - - - - - 878,558

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - - - - - 292,409
Total deferred inflows of resources - - - - - - - - 292,409

FUND BALANCE
Restricted
Lighting, landscape & park maintenance - - - - - - - - 3,385,906 Community development 35,693 53,519 3,884 287,941 86,450 - 338,156 307,774 1,127,392 Street improvements - - - - - - - - 271,947
Public safety - - - - - 416,099 - - 460,575
Unassigned - - - - - - - - (812,627)
Total fund balance 35,693 53,519 3,884 287,941 86,450 416,099 338,156 307,774 4,433,193 Total liabilities, deferred inflows
of resources and fund balance 35,693 $ 53,519 $ 3,884 $ 287,941 $ 86,450 $ 416,099 $ 338,156 $ 307,774 $ 5,604,160 $ Special Revenue
Packet Pg. 182
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 55
CITY OF GONZALES COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024 California Canyon Creek
Supplemental Ag Industrial Breeze Park &
Infrastructure Gas Local Law Public Park Federal Housing Maintenance Maintenance Improvements Tax Enforcement Safety Grant AQMD Successor District District Revenue
Taxes and assessments - $ - $ - $ - $ - $ - $ - $ 144,582 $ 290,741 $ Licenses, permits and impact fees - - - 5,494 - - - - - Intergovernmental - 455,373 300,103 - - - - - -
Use of money and property - - 2,768 1,130 206 143 - 5,976 77,827 Other revenue - - - - - - - - -
Total revenue 455,373 - 302,871 6,624 206 143 - 150,558 368,568 Expenditures
General government - - - - - - - - -
Public safety - - - 180,589 - - - - -
Public works - 455,370 - - - - - - -
Parks and recreation - - - - - - - 191,596 100,563
Community development - - - - - - - - -
Debt service
Principal - - - - - 22,482 - - -
Interest and fiscal charges - - - - - 2,079 - - -
Total expenditures 455,370 - - 180,589 - 24,561 - 191,596 100,563 Revenue over (under) expenditures - 3 302,871 (173,965) 206 (24,418) - (41,038) 268,005 Other financing sources/(uses)
Operating transfers in/(out) - net - - (302,871) 173,972 - - - (19,000) (15,000) - - (302,871) 173,972 - - - (19,000) (15,000)
Change in Fund Balance 3 - - 7 206 (24,418) - (60,038) 253,005 Fund Balance
Beginning of year (493,608) 3,500 - - 4,971 24,418 (190,218) (68,770) 1,721,917 End of year (493,608) $ 3,503 $ - $ 7 $ 5,177 $ - $ (190,218) $ (128,808) $ 1,974,922 $ Special Revenue
Packet Pg. 183
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 56
CITY OF GONZALES COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024 Cipriani Gonzales
Estates Park & Industrial Park Intersection Circulation American Maintenance Landscape & Improvements Police Park Fire System Rescue District Maintenance Impact Fees Impact Fees Impact Fees Impact Fees Impact Fees Plan Revenue
Taxes and assessments 97,749 $ 164,417 $ - $ - $ - $ - $ - $ - $ Licenses, permits and impact fees - - - 236 7,429 19 5,682 - Intergovernmental - - - - - - - -
Use of money and property 33,365 22,399 - 1,398 219 372 11,082 8,914 Other revenue - - 8,312 - - - - -
Total revenue 186,816 131,114 8,312 1,634 7,648 391 16,764 8,914 Expenditures
General government - - - - - - - 288,924
Public safety - - - - - - - -
Public works 13,996 40,317 8,312 - - - - -
Parks and recreation 15,880 - - - - - - -
Community development - - - - - - - -
Debt service
Principal - - - - - - - -
Interest and fiscal charges - - - - - - - -
Total expenditures 40,317 29,876 8,312 - - - - 288,924
Revenue over (under) expenditures 101,238 146,499 - 1,634 7,648 391 16,764 (280,010) Other financing sources/(uses)
Operating transfers in/(out) - net (10,000) (10,000) - - - - - - (10,000) (10,000) - - - - - -
Change in Fund Balance 136,499 91,238 - 1,634 7,648 391 16,764 (280,010) Fund Balance
Beginning of year 733,467 449,780 - 33,501 1,150 8,950 251,680 280,010 End of year 824,705 $ 586,279 $ - $ 35,135 $ 8,798 $ 9,341 $ 268,444 $ - $ Special Revenue
Packet Pg. 184
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial See accompanying notes. 57
CITY OF GONZALES COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Storm Enhanced Total
Drainage Public Public Uses Sphere of CDBG Infrastructure Non-major Facility Facilities Mitigation Influence General Plan SB1 Urban Financing Governmental Impact Fees Impact Fees Fees Impact Fees Impact Fees Road County Grant District Funds Revenue
Taxes and assessments - $ - $ - $ - $ - $ 220,280 $ - $ 175,235 $ 1,093,004 $ Licenses, permits and impact fees - 3,894 - - - - - - 22,754 Intergovernmental - - - 40,000 23 - 475,343 - 1,270,842 Use of money and property 1,424 2,475 155 11,710 3,427 12,071 2,127 6,384 205,572 Other revenue - - - 51,123 - - - - 59,435
Total revenue 6,369 1,424 155 102,833 3,450 232,351 477,470 181,619 2,642,693 Expenditures
General government - - - - - - - - 288,924
Public safety - - - - - - - - 180,589
Public works - - - - - - - - 517,995
Parks and recreation - - - - - - - - 308,039
Community development - - - 98,960 - - 122,912 - 221,872 Debt service
Principal - - - - - - - - 22,482
Interest and fiscal charges - - - - - - - - 2,079
Total expenditures - - - 98,960 - - 122,912 - 1,541,980 Revenue over (under) expenditures 1,424 6,369 155 3,873 3,450 232,351 354,558 181,619 1,100,713 Other financing sources/(uses)
Operating transfers in/(out) - net - - - - - - (16,402) - (199,301) - - - - - - (16,402) - (199,301)
Change in Fund Balance 6,369 1,424 155 3,873 3,450 232,351 338,156 181,619 901,412 Fund Balance
Beginning of year 47,150 34,269 3,729 284,068 83,000 183,748 - 126,155 3,522,867 End of year 35,693 $ 53,519 $ 3,884 $ 287,941 $ 86,450 $ 416,099 $ 338,156 $ 307,774 $ 4,433,193 $ Special Revenue
Packet Pg. 185
Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Gonzales, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of City of Gonzales (the “City”), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated April 30, 2025.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Packet Pg. 186 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report) 59 Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

April 30, 2025
Packet Pg. 187 Attachment: 2024 Gonzales Financial Statements (3259 : Fiscal Year 2023-2024 Audit Financial Statements and Management Report)

Gonzales City CouncilMay 19, 2025

Gonzales City Council
May 19, 2025