Gonzales City Council
June 1, 2026

AGENDA

JOINT CITY COUNCIL/SUCCESSOR AGENCY

REGULAR MEETING

COUNCIL CHAMBERS
117 FOURTH STREET, GONZALES, CA 93926
MONDAY, JUNE 1, 2026
6:00 PM

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. PRESENTATIONS

4.1 Proclamation No. 2026-05 Recognizing Youth Commissioner Shelby Anderson

4.2 Proclamation No. 2026-06 Recognizing Youth Commissioner Ricardo Rodriguez Perez

4.3 Proclamation No. 2026-07 Recognizing the Gonzales Youth Council's 10-Year Anniversary

4.4 Gonzales Youth Council FY 2025-2026 End of Year Presentation

5. BUSINESS FROM THE PUBLIC
City Council/Successor Agency Members:

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

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 two 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]
Proclamation No. 2026-05
Proclamation No. 2026-06
Proclamation No. 2026-07
Business from the Public not on the Agenda; any member of the Public may address the 1 6. CONSENT AGENDA

6.1 Approve the Joint City Council/Successor Agency Regular Meeting Minutes of May 18, 2026

6.2 Approve Accounts Payable Warrants #53897-53965

6.3 Resolution No. 2026-25, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Enter Into an Agreement with NHA Advisors, LLC to Serve as the Independent Financial Advisors for the City of Gonzales

6.4 Resolution No. 2026-27, A Resolution of the City Council of the City of Gonzales Approving a Memorandum of Understanding with the Boys and Girls Club of Monterey County for Program Services to be Delivered at the Dennis and Janice Caprara Community Center Complex’s Teen Center from August 13, 2026, through June 10, 2027

7. REGULAR AGENDA

7.1 Continuance of the FY 2026-2027 Cost for Services Fee Schedule Item

7.2 Resolution No. 2026-26, A Joint Resolution of the City Council of the City of Gonzales and the Successor Agency of the City of Gonzales Redevelopment Agency Approving Interim Funding For Fiscal Year 2026-2027 and Continuing the Budget Until August 31, 2026

8. GONZALES YOUTH COUNCIL UPDATES

9. BUSINESS FROM CITY COUNCIL

10. BUSINESS FROM CITY MANAGER

11. CLOSED SESSION
Council/Agency for a period not to exceed two (2) minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action.

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.

May 18, 2026 CC/SA Minutes.pdf
Warrants #53897-53965
Resolution No. 2026-25
Agreement with NHA Advisors, LLC
Resolution No. 2026-27
MOU with Boys & Girls Club
Public Hearing Notice - June 1, 2026
Joint Resolution No. 2026-26

9.1. Board/Committee Reports
Transportation Agency for Monterey County
Mayor Selection Committee
Salinas Valley Recycles

9.2. Oral Communications
2 11.1 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: Claim of Herbert Bowen.

12. ADJOURNMENT
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 two (2) minutes. Please be brief and to the point.

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.

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.

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 28, 2026 at 5:00pm. /s/ 5/28/26
Mary Villegas Date
3 CITY OF GONZALES
AGENDA
ITEM

4.1 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Proclamation No. 2026-05 Recognizing Youth Commissioner Shelby Anderson

RECREATION/COMMUNITY ENGAGEMENT DEPARTMENT
ATTACHMENTS:

Proclamation No. 2026-05
4 PROCLAMATION NO. 2026-05
WHEREAS, Shelby Anderson has proudly served as a passionate and committed member of the Gonzales Youth Council from 2024 to 2026. In the summer of 2025, she was appointed as a Youth Commissioner by the Gonzales City Manager and the Gonzales Unified School District Superintendent in recognition of her outstanding leadership, dedication to civic involvement, and unwavering service to the community. Throughout her time on the Gonzales Youth Council, she continually inspired others through her enthusiasm, thoughtful contributions, and genuine desire to make a lasting and meaningful impact in the City of Gonzales; and
WHEREAS, Commissioner Shelby Anderson has actively participated in multiple community action projects, including assisting with a GYC survey focused on student perspectives regarding online class offerings, engaging community members through a tenant rights survey, and supporting a community gardening day along with a food pantry installation initiative centered on city beautification and addressing food insecurity; and
WHEREAS, Commissioner Shelby Anderson co-led the planning and execution of the 3rd Annual South County Youth Summit, held at the newly opened Dennis & Janice Caprara Community Center, which brought together youth from across South Monterey County and provided engaging workshops, a resource fair and was centered on college readiness, career pathways, leadership development, and personal growth; and WHEREAS, Shelby Anderson has demonstrated exceptional involvement beyond her role as a Gonzales Youth Commissioner through a wide range of extracurricular and leadership experiences. During her four years at Gonzales High School, she actively participated in ASB, contributing to school events and coordinating fundraisers in support of her team, and served as a former FFA officer, attending multiple State Conferences.

She was also a member of YOSAL as a second violinist and engaged in volunteer service through her local Christian organization. Additionally, she has been an active Girl Scouts Ambassador since 2016 and has independently sold over 2,500 boxes of cookies for three consecutive years, reflecting her dedication, leadership, and commitment to service; and NOW, THEREFORE, BE IT PROCLAIMED, by the Gonzales City Council, that Shelby Anderson is hereby recognized and commended for her exceptional leadership, steadfast dedication to service, strong advocacy, academic achievement, and inspiring determination; and with heartfelt appreciation, the City of Gonzales honors Shelby’s meaningful and lasting contributions to the community and extends its warmest congratulations and best wishes as she graduates from Gonzales High School and continues her pursuit of a degree in Criminal Justice.

Jose L. Rios, The Honorable Mayor
June 1, 2026
5 CITY OF GONZALES
AGENDA
ITEM

4.2 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Proclamation No. 2026-06 Recognizing Youth Commissioner Ricardo Rodriguez Perez

RECREATION/COMMUNITY ENGAGEMENT DEPARTMENT
ATTACHMENTS:

Proclamation No. 2026-06
6 PROCLAMATION NO. 2026-06
WHEREAS, Ricardo Rodriguez-Perez has served as an engaged and dedicated member of the Gonzales Youth Council from 2024 to 2026. In the summer of 2025, he was appointed Youth Commissioner by the Gonzales City Manager and the Gonzales Unified School District Superintendent in recognition of his strong commitment to leadership, civic engagement, and community service. Throughout his time with the Gonzales Youth Council, he consistently demonstrated initiative, active participation, and a sincere passion for creating positive change within the community; and WHEREAS, Commissioner Ricardo Rodriguez-Perez collaborated with numerous community stakeholders and organizations, including Save the Whales, RCDC, Salinas Valley Recycles, and the Salinas Valley Health Live Well Project, to help organize a Community Gardening Day in response to federal-level budget cuts impacting local resources. He also partnered with the City of Gonzales Public Works Department to establish a community food pantry and engaged Gonzales High School students in creating a mural for the pantry, further fostering community pride, creativity, and service; and
WHEREAS, Commissioner Ricardo Rodriguez-Perez was among the first Gonzales Youth Council members to participate in the inaugural South County Youth Summit in 2024, an event that united youth from across South Monterey County and provided students with valuable resources and workshops focused on college preparation, career readiness, leadership development, and personal growth; and WHEREAS, Ricardo Rodriguez-Perez has excelled not only as a community leader, but also as an outstanding student and dedicated participant in extracurricular activities.

During his time at Gonzales High School, he contributed to the Boys Tennis Championship team in 2024 and was recognized as the Boys Varsity Tennis MVP in 2025. He maintained Honor Roll status throughout all four years at Gonzales High School and most recently completed the Certified Medical Assistant program offered through Gonzales Adult School, demonstrating his strong work ethic, determination, and commitment to personal and professional growth; and
NOW, THEREFORE, BE IT PROCLAIMED, by the Gonzales City Council, that Ricardo Rodriguez-Perez is hereby recognized and commended for his outstanding leadership, unwavering dedication to service, passionate advocacy, academic excellence, and inspiring resilience; and with heartfelt appreciation, the City of Gonzales celebrates Ricardo’s meaningful and lasting impact he has made within the community and extends its sincerest congratulations and best wishes as he graduates from Gonzales High School and continues pursuing his goal of becoming a Sports Medicine Physical Therapist.

Jose L. Rios, The Honorable Mayor
June 1, 2026
7 CITY OF GONZALES
AGENDA
ITEM

4.3 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Proclamation No. 2026-07 Recognizing the Gonzales Youth Council's 10-Year Anniversary

RECREATION/COMMUNITY ENGAGEMENT DEPARTMENT
ATTACHMENTS:

Proclamation No. 2026-07
8 PROCLAMATION NO. 2026-07
WHEREAS, the City of Gonzales has long demonstrated a strong commitment to youth development and empowerment; and in 2015, elevated that commitment through the establishment of the Gonzales Youth Council (GYC), which began with the creation of a Commissioner position and has since grown into a full Council comprised of two to three Commissioners and several dedicated members; and
WHEREAS, from its inception, the Gonzales Youth Council has distinguished itself as a unique and impactful youth leadership program by actively engaging local youth in the civic life of the City and its schools through meaningful projects, community involvement, and direct participation in municipal government and decision-making processes; and WHEREAS, this mission holds special significance for the City of Gonzales, where one in every three residents is under the age of 18, and through the Gonzales Youth Council, Youth Commissioners have had the opportunity to serve as participatory, non-voting members of the City Council during their one-year terms, allowing them to review and analyze City matters, make recommendations, deliver presentations, collaborate with City officials and departments, and contribute to initiatives and policies that reflect the voices and concerns of local youth, making the GYC one of the City’s cornerstone youth development, civic engagement, and leadership programs; and
WHEREAS, as a result of their advocacy work, the Gonzales Youth Council has received multiple awards and has been recognized nationally and even published in medical journals; and WHEREAS, members of the Gonzales Youth Council have played a meaningful role in initiating positive change within the community through impactful projects and advocacy efforts addressing a variety of important topics and issues affecting local youth, including the vision and development of the Teen Innovation Center, a transformative project championed by the GYC over several years, with its completion coinciding with the Council’s 10-year anniversary; and WHEREAS, the Gonzales Youth Council’s integration into the fabric of local government and the significance of its accomplishments have distinguished it as a vital and vibrant investment in youth leadership and civic participation, now guided by Co-Advisors Jessica Olmedo of the City of Gonzales and former GYC alum Cindy Aguilar Castañeda of C4 Consulting, reflecting the program’s lasting legacy and full-circle impact, while its continued success has inspired neighboring communities, including the Cities of Soledad, Greenfield, and Salinas, to further invest in youth engagement and leadership opportunities; and
NOW, THEREFORE, BE IT PROCLAIMED, by the Gonzales City Council, that the Gonzales Youth Council is hereby recognized and commended in celebration of its 10-year Anniversary, honoring a decade of exceptional service, leadership, civic engagement, and enduring legacy within the Gonzales community, while looking ahead with pride and anticipation for the continued accomplishments and success yet to come.

Jose L. Rios, The Honorable Mayor
June 1, 2026
9 CITY OF GONZALES
AGENDA
ITEM

6.1 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Approve the Joint City Council/Successor Agency Regular Meeting Minutes of May 18, 2026

CITY MANAGER
ATTACHMENTS:

May 18, 2026 CC/SA Minutes.pdf
10

MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL/

GONZALES SUCCESSOR AGENCY
MONDAY, MAY 18, 2026
6:00 PM

1. CALL TO ORDER
Mayor Rios called the meeting to order at 6:00pm.

2. PLEDGE OF ALLEGIANCE
Council Member Orozco led the flag salute.

3. ROLL CALL
Attendee Name Title Status
Jose L Rios Mayor/Chair Present
Liz Silva Mayor Pro Tem/Vice Chair Present
Scott Funk Member Present
Maria Orozco Member Present
Lorraine Worthy Member Excused Absence

YOUTH COMMISSIONERS PRESENT
Orlando Rodriguez.

STAFF PRESENT
City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Community Development Director Taven Kinison Brown, Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas, Administrative Assistant II Yoanna Meza, Public Works Director/City Engineer Octavio Hurtado, and Police Chief Keith Wise.
11

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 two 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]

4. PRESENTATIONS

4.1 Certificates of Recognition to the Gonzales High School Track & Field Events Deputy City Clerk Villegas read the certificates recognizing them for winning the first ever Championship Title in the PCAL Santa Lucia Division.

Mayor Rios presented the certificates to the athletes and coaches.

Coach Margie Daniels mentioned Coach Mike Ramirez couldn't be here tonight due to being on vacation, and she recognized Liz Baguio who was also a double individual champion and Assistant Coach Dylan Oliveros for helping this season.

Assistant Coach Oliveros thanked the coaches, the administration, and the City for all their support and the new facility which were part of the successful season.

4.2 Proclamation No. 2026-04 Proclaiming the Week of May 17 - 23, 2026 as National Public Works Week
RESULT: PASSED[UNANIMOUS]
MOVER: Maria Orozco
SECONDER: Liz Silva
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
ABSENT: Lorraine Worthy
Mayor Pro Tem Silva read and presented Proclamation No. 2026-04 to Public Works Supervisor Martin Diaz, Public Works Leadworker Frank Valladarez, and Maintenance Worker Jimmy Vasquez.

Public Works Director Hurtado thanked all the Public Works staff. He mentioned they have been through a lot this year and they are the other first responders getting calls at all hours of the day and night, and without them, our City wouldn't run as efficiently as it does. He was honored to have them on the Public Works team.
12

4.3 Ratify Proclamation No. 2026-03 Congratulating Mayor Pro Tem Liz Silva on Being Selected as Ag Woman of the Year
RESULT: PASSED[UNANIMOUS]
MOVER: Scott Funk
SECONDER: Maria Orozco
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
ABSENT: Lorraine Worthy
City Manager Gil read and presented Proclamation No. 2026-03 to Mayor Pro Tem Silva.

Mayor Pro Tem Silva said she was honored and humbled beyond words, and thanked everyone for the proclamation and wishes. She elaborated on how surprised she was at the event and her involvement in the ag industry.

5. BUSINESS FROM THE PUBLIC
Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed two (2) minutes on any subject not on the Agenda.

The Council/Agency will listen to all communications but may take no action.

Henry Martinez Sr. commented about the visit from his attorney regarding his arrest and the evidence they had against him from videos when he talked at the podium. He said he will file a complaint against the Police Department with the federal government for violating his freedom of speech, will be pleading guilty tomorrow morning, and he had the rules and conducts of the Brown Act.

Henry Martinez III commented he will be painting the red curve in front of his property today and wanted to help the City. He didn't want any police officers at the Fourth of July raiding again on a kid's party because they have cameras set up and will be recording everything if they want to do anything stupid. He said he’s going to support his football coach who taught him everything in High School.

Henry Martinez Jr. (via zoom) commented about the measure meeting he attended raising his taxes, pushing it with other landlords that were voting no and they got a lot of movement going towards this, and they were not going to put a band-aid on the Fire Department. He also told the Chief his and his dad's cases got dismissed and dropped and soon his son's will be, and he's going to be looking for the arrest of the officers for making false claims. He told the Chief good luck because he was coming for him and his officers, and he hoped he would retire soon.

6. 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.
13

6.1 Approve the Joint City Council/Successor Agency Regular Meeting Minutes - May 4, 2026

6.2 Approve Accounts Payable Warrants #53835-53895

6.3 City Manager Report

6.4 Community Development Department Activity Report

6.5 Community Engagement & Recreation Departments Activity Report

6.6 Police Department Activity Report

6.7 Public Works/City Engineer Department Activity Report

6.8 Fireworks Sales Permits 2026

6.9 Resolution No. 2026-19, A Resolution of the City Council of the City of Gonzales Approving the Pavement Management Program Update 2025 Reimbursement Agreement with the Transportation Agency for Monterey County (TAMC) for the City’s Pavement Management Program, and Authorizing the City Manager to Execute the Agreement

6.10 Resolution No. 2026-20, A Resolution of the City Council of the City of Gonzales Approving an Electronic Signature Policy
RESULT: PASSED[UNANIMOUS]
MOVER: Scott Funk
SECONDER: Liz Silva
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
ABSENT: Lorraine Worthy

7. REGULAR AGENDA

7.1 Resolution No. 2026-21, A Resolution of the City Council of the City of Gonzales Designating Reconstructing Alta Minor Street between Third Street and Fifth Street, Fourth Street between Alta Minor Street and Belden Street, Rincon Road between Fifth Street and Fairview Drive, and to Slurry Seal Fifth Street from Alta Minor Street to Fanoe Road as the City’s Priority Project for FY 2026-2027 to be Funded by SB 1 - The Road Repair and Accountability Act of 2017
Staff Report: Public Works Director Hurtado presented the staff report.

Public Comment: There was none.

Council Discussion: Public Works Director Hurtado answered questions from Council Members regarding the areas that were included in this project and the timeline. 14

8. GONZALES YOUTH COUNCIL UPDATES
Commissioner Rodriguez reported on the outcome of their May 14th meeting, announced their May 28th final meeting, capstone presentation to the City Council on June 1st, applications for the FY 2026-2027, and High School activities.

9. BUSINESS FROM CITY COUNCIL

9.1 Board/Committee Reports
League of California Cities - No report.

Association of Monterey Bay Area Governments - No report.

Monterey Salinas Transit - Mayor Pro Tem Silva shared that the transfer station proposal was accepted by MST and Salinas Valley Recycles provided them with the keys.

Oral Communications
Mayor Pro Tem Silva reported on the successful fair events and thanked everyone who attended the exhibitions and auction on Saturday. She thanked the community for attending the Measure B Town Hall and the meeting with TAMC and Caltrans regarding Fifth Street. She reminded everyone about Memorial Day Ceremony on May 25th at 9:00am, and she had red poppies if anyone wants them.

Council Member Funk congratulated Mayor Pro Tem Silva.

Council Member Orozco congratulated Mayor Pro Tem Silva for receiving the Ag Woman of the Year Award. She thanked staff for their help with the Children's Festival and Cinco de Mayo events. She announced the Rotary's Fourth of July event and the August Scholarship Golf Tournament.

Mayor Rios commented about having lunch with the Taylor Farms Director of Maintenance who commented about the three-way stop road condition as you come out from Taylor Farms on River Road and the road condition. He didn't know if the assessment district for the industrial park covered that intersection and he also asked about solar panel maintenance program.

City Manager Gil mentioned staff will do research on the frequency of the solar panels maintenance.

10. BUSINESS FROM CITY MANAGER
City Manager Gil asked the Council to join her in congratulating Administrative Assistant II Yoanna Meza who graduated yesterday with a Bachelor's Degree in Business from California State University East Bay. She said working full time while going to school was not easy and all of us are very proud of her big achievement, and we love having her as part of our team.

The Council congratulated Administrative Assistant II Meza. 15

City Manager Gil announced the election was coming up on June 2nd, the Fourth of July celebration at Centra Park, and the Car Show on July 18th from 12:00pm to 4:00pm.

Public Works Director Hurtado informed staff was notified today that the truck ban encroachment permit was issued by CalTrans. He addressed the Mayor's comments on the solar panels and updated them on the conversations staff has been having with Opterra regarding the maintenance of the solar panels, and elaborated on the assessment districts funds for street projects at the industrial park, and wastewater treatment plant update.

11. ADJOURNMENT
Mayor Rios asked to adjourn the meeting with a moment of silence in memory of Mike Franscioni and Council Member Worthy's mom Nelda Pedrazzoli.

A moment of silence was observed by all present.

RESULT: PASSED[UNANIMOUS]
MOVER: Liz Silva
SECONDER: Maria Orozco
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
ABSENT: Lorraine Worthy
ATTEST:

Mary Villegas, Deputy City Clerk
16 CITY OF GONZALES
AGENDA
ITEM

6.2 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Approve Accounts Payable Warrants #53897-53965

CITY MANAGER
ATTACHMENTS:

Warrants #53897-53965
17 18
19 20
21 22
23 24
25 26
27 28
29 CITY OF GONZALES
AGENDA
ITEM

6.3 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-25, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Enter Into an Agreement with NHA Advisors, LLC to Serve as the Independent Financial Advisors for the City of Gonzales

CITY MANAGER
ATTACHMENTS:

Resolution No. 2026-25
Agreement with NHA Advisors, LLC
30 RESOLUTION NO. 2026-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH

NHA ADVISORS, LLC TO SERVE AS THE INDEPENDENT FINANCIAL ADVISORS

FOR THE CITY OF GONZALES
WHEREAS, the City has need for the expertise provided by a financial advisor; and WHEREAS, the City from time to time, will undertake capital improvement projects that require a financing plan and may require short and/or long-term borrowing; and WHEREAS, the services provided by a financial advisor are needed as the City evaluates and considers any short and/or long-term borrowing options; and WHEREAS, NHA Advisors, LLC are currently the Independent Financial Advisor for the City and Gonzales Successor Agency on the Refunding of former Redevelopment Agency Bonds; and WHEREAS, staff finds that NHA Advisors, LLC are registered as an Independent Registered Municipal Advisor (“IRMA”), SEC and MSRB, have good relationships with rating agencies, have a firm understanding of the financing tools available to the public sector, and are knowledgeable and able to provide the City with prudent advise; and
WHEREAS, theCity finds, after considering the recommendation ofstaff, that NHAAdvisors, LLC offers financial and municipal advisor services that meet the City’s needs.

NOW THEREFORE BE IT HEREBY RESOLVED, that the City of Gonzales does hereby resolve that the City Manager is authorized to execute the Agreement with NHA Advisors, LLC to serve as Financial Advisors for the City of Gonzales for a period of five (5) years through June 30, 2031 in an amount not to exceed $50,000 annually; and
BE IT FURTHER RESOLVED, that the costs for Financial Advisor Services will be paid from the financial tools utilized or by the appropriate City Fund designated for the capital project underway.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 1st day of June, 2026 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
31 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

MUNICIPAL ADVISOR AGREEMENT

BETWEEN

CITY OF GONZALES
AND

NHA ADVISORS, LLC
THIS MUNICIPAL ADVISOR AGREEMENT (this “Agreement”) for consulting services is made by and between the City of Gonzales, (the “City”) and NHA Advisors, LLC (“Consultant”) (together referred to as the “Parties”) as of June 1, 2026 (the “Effective Date”).

SECTION 1 – SERVICES
As the City’s registered municipal advisor, subject to the terms and conditions set forth in this Agreement, Consultant shall provide to the City the services described in the Scope of Services attached as Exhibit A, and incorporated herein, 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.

If acting in the capacity of an Independent Registered Municipal Advisor (“IRMA”) regarding the “IRMA exemption” of the SEC Rule, Consultant will review all third-party recommendations submitted to the City in writing, if requested.

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on June 30, 2031, or upon completion of the Scope of Services described in Exhibit A, 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 according to the standards observed by a competent practitioner of the profession in which Consultant is engaged.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event the City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from the City of such desire of the City, reassign such person or persons.

1.4 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.1 above and to satisfy Consultant’s obligations hereunder.

If the City elects a course of action that is independent of or contrary to the advice provided by Consultant, Consultant is not required on that basis to disengage from the City.

SECTION 2 - COMPENSATION
The City hereby agrees to pay Consultant compensation for services outlined in the Scope of Services (Exhibit A) under the Compensation Schedule (Exhibit B). 32 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

The 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 the City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to the City in the manner specified herein. Except as specifically authorized by the City in writing, Consultant shall not bill the City for duplicate services performed by more than one person.

Consultant and the City acknowledge and agree that compensation paid by the 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. The 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:
 The beginning and ending dates of the billing period.  At the City’s option, for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense.
 For work performed on an hourly Compensation Schedule, the total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder.

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

2.3 Final Payment. The City shall pay the final sum due pursuant to this Agreement within 60 days after completion of the services and submittal to the City of a final invoice if all services required have been satisfactorily performed.

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

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.
33 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

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

2.6 Reimbursable Expenses. Reimbursable expenses are specified in Exhibit B. Expenses will typically include third-party data collection or services not provided by the City.

Reimbursable expenses are in addition to the total amount of compensation provided under this Agreement that shall not be exceeded.

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

2.8 Payment upon Termination. In the event the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate 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. 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
Except as set forth herein, 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. The City shall make available to Consultant only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein.

The City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with the City employees and reviewing records and the information in possession of the City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of the City. In no event shall the City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities.

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

Consistent with the following provisions, Consultant shall provide proof satisfactory to the 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 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 the 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. 34 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

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 not less than $1,000,000 per accident. In the alternative, Consultant may rely on a selfinsurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or 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 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 (most recent edition), 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) The City, its officers, officials, employees, and volunteers are to be covered as additional insured as respects: liability arising out of work or operations performed by or on behalf of Consultant; or automobiles owned, leased, hired, or borrowed by Consultant.
c) For any claims related to this Agreement or the work hereunder, Consultant’s insurance covered shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or 35 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of 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 $250,000 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 must 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.

4.4 All Policies Requirements.

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

4.4.2 Verification of Coverage. Prior to beginning any work under this Agreement, Consultant shall furnish the 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 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 Consultant beginning work, it shall not waive Consultant’s obligation to provide them. The 36 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

City reserves the right to make 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 the 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 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 contractor, its employees, agents, and subcontractors.

4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all the requirements stated herein.

4.5 Remedies. In addition to any other remedies the 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, the City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies the City may have and are not the exclusive remedy for Consultant’s breach:
 obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
 order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or
 terminate this Agreement.

SECTION 5 – CONSULTANT’S RESPONSIBILITIES AND INDEMNIFICATION Consultant is registered as a Municipal Advisor with the SEC and Municipal Securities Rulemaking Board (“MSRB”). As such, Consultant has a fiduciary duty to the City and must provide both a Duty of Care and a Duty of Loyalty that entail the following.
37 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

Duty of Care:
a) exercise due care in performing its municipal advisory activities; b) possess the degree of knowledge and expertise needed to provide the City with informed advice; c) make a reasonable inquiry as to the facts that are relevant to the City’s determination as to whether to proceed with a course of action or that form the basis for any advice provided to the City; and
d) undertake a reasonable investigation to determine that Consultant is not forming any recommendation on materially inaccurate or incomplete information; Consultant must have a reasonable basis for:
i. any advice provided to or on behalf of the City;
ii. any representations made in a certificate that it signs that will be reasonably foreseeably relied upon by the City, any other party involved in the municipal securities transaction or municipal financial product, or investors in the City securities; and iii. any information provided to the City or other parties involved in the municipal securities transaction in connection with the preparation of an official statement.

Duty of Loyalty:

Consultant must deal honestly and with the utmost good faith with the City and act in the City’s best interests without regard to the financial or other interests of Consultant. Consultant will eliminate or provide full and fair disclosure (included herein) to the City about each material conflict of interest (as applicable). Consultant will not engage in municipal advisory activities with the City as a municipal entity, if it cannot manage or mitigate its conflicts in a manner that will permit it to act in the City’s best interests.

Conflicts of Interest and Other Matters Requiring Disclosures As of the commencement date of the Project, there are no actual or potential material conflicts of interest, other than those potential conflicts noted below, that Consultant is aware of that might impair its ability to render unbiased and competent advice or to fulfill its fiduciary duty. If Consultant becomes aware of any material potential conflict of interest that arises after this disclosure, Consultant will disclose the detailed information in writing to the City in a timely manner.

Pursuant to MSRB Rule G-42, on Duties of Non-Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Consultant and its associated persons.

The following are potential conflicts of interest to be considered.  Consultant represents that in connection with the issuance of municipal securities, Consultant may receive compensation from the City for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G-42, Consultant hereby discloses that such contingent and/or transactional compensation may present a potential conflict of interest regarding Consultant’s ability to provide unbiased advice to enter into such transaction. The contingent fee arrangement creates an incentive for Consultant to recommend unnecessary financings or financings that are disadvantageous to the City, or to advise the City to increase the size of the issue. This potential conflict of interest will not impair Consultant’s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City. 38 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

 Consultant’s fees under this potential agreement may be based on hourly fees of Consultant’s personnel, with the aggregate amount equaling the number of hours worked by such personnel times an agreed-upon hourly billing rate. This form of compensation presents a potential conflict of interest because it could create an incentive for Consultant to recommend alternatives that would result in more hours worked. This conflict of interest will not impair Consultant’s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City.  Consultant’s fees under this potential agreement may be a fixed amount established at the outset of this potential agreement. The amount is usually based upon an analysis by the City and Consultant of, among other things, the expected duration and complexity of the transaction and the scope of services to be performed by Consultant. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Consultant may suffer a loss. Thus, Consultant may recommend less timeconsuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest will not impair Consultant’s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City.
 The fee paid to Consultant increases the cost of investment to the City. The increased cost occurs from compensating Consultant for municipal advisory services provided.  Consultant serves a wide variety of other clients that may, from time to time, have interests that could have a direct or indirect impact on the interests of another Consultant client. For example, Consultant serves as municipal advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to the City. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, Consultant could potentially face a conflict of interest arising from these competing client interests. Consultant fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with the City.  Gerald Craig Hill, the Managing Principal of NHA Advisors is currently serving as an outside director for the HdL Companies based in Diamond Bar, CA. HdL Companies is a software and professional services consulting company providing revenue data and collections information to local governments, potentially including NHA Advisors’ clients. HdL Companies have affiliates including, but not limited to, HdL Coren & Cone. From time to time, NHA Advisors utilizes the services of HdL Coren & Cone for its clients. NHA Advisors is mindful of this conflict of interest and fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith when this situation arises.
• Consultant does not have any affiliate that provides any advice, service, or product to or on behalf of the City that is directly or indirectly related to the municipal advisory activities to be performed by Consultant.
• Consultant has not made any payments directly or indirectly to obtain or retain Consultant’s municipal advisory business.
• Consultant has not received any payments from third parties to enlist Consultant’s recommendation to the City of its services, any municipal securities transaction, or any municipal finance product.
39 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

• Consultant has not engaged in any fee-splitting arrangements involving Consultant and any provider of investments or services to the City.
• Consultant does not have any legal or disciplinary event that is material to the City’s evaluation of the municipal advisory or the integrity of its management or advisory personnel. • Consultant does not function as principal in any of the transaction(s) related to this potential agreement.

Recommendations
If Consultant makes a recommendation of a municipal securities transaction or municipal financial product or if the review of a recommendation of another party is requested in writing by the City and is within the scope of the engagement, Consultant will determine, based on the information obtained through reasonable diligence of Consultant whether a municipal securities transaction or municipal financial product is suitable for the City. In addition, Consultant will inform the City of:
 the evaluation of the material risks, potential benefits, structure, and other characteristics of the recommendation;
 the basis upon which Consultant reasonably believes that the recommended municipal securities transaction or municipal financial product is, or is not, suitable for the City; and  whether Consultant has investigated or considered other reasonably feasible alternatives to the recommendation that might also or alternatively serve the City’s objectives.

If the City elects a course of action that is independent of or contrary to the advice provided by Consultant, Consultant is not required on that basis to disengage from the City.

Municipal Securities Rulemaking Board Rule G-10 Disclosure Pursuant to MSRB Rule G-10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which include the following:
 Consultant is currently registered as a Municipal Advisor with the SEC and MSRB.  Within the MSRB website at www.msrb.org, the City may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure describes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities.

Record Retention
Pursuant to the SEC record retention regulations, Consultant is required to maintain, in writing, all communication and created documents between Consultant and the City for five (5) years.

Indemnification
Consultant shall indemnify, defend with counsel acceptable to the City, and hold harmless the City and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, 40 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

claims, expenses, and costs (including without limitation, attorney’s fees and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of the City.

Consultant’s obligation to defend and indemnify shall not be excused because of Consultant’s inability to evaluate Liability or because Consultant evaluates Liability and determines that Consultant is not liable to the claimant. Consultant must respond within 30 days, to the tender of any claim for defense and indemnity by the City, unless this time has been extended by the City. If Consultant fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any other remedy authorized by law, so much of the money due Consultant under and by virtue of this Agreement as shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the claim or suit for damages, or until Consultant accepts or rejects the tender of defense, whichever occurs first.

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

Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by California Civil Code Section 2782, 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.

In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless the City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

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 the City. The 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 the City shall not have the right to control how 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 the City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of the City and entitlement to any contribution to be paid by the City for employer contributions and/or employee contributions for PERS benefits.

6.2 Consultant Not an Agent. Except as the City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity of the City whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind the City to any obligation whatsoever. 41 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

6.3 Public Officials Who Manage Public Investments. Government Code section 87200 et seq. requires that public officials, which include every member, officer, employee or consultant of a state or local government agency, who manages public investments, must file a statement of economic interest. Consultant acknowledges that it may be deemed to be a public official pursuant to this Government Code section and, if so, is obligated to complete a statement of economic interest (Form 700) and file it with the Fair Political Practices Commission (“FPPC”).

SECTION 7 - LEGAL REQUIREMENTS

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

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder.

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 the City is bound by the terms of such fiscal assistance program.

7.4 Licenses and Permits. Consultant represents and warrants to the 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 the City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect 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.

7.5 Legal Events and Disciplinary History. Consultant does not have any legal events and disciplinary history on its Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations, and civil litigation. The City may electronically access Consultant’s most recent Form MA and each most recent Form MAI filed with the Commission at the following website:
www.sec.gov/edgar/searchedgar/companysearch.html
There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC.

7.6 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, based on 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 42 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

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

Consultant may cancel this Agreement upon 45 days’ written notice to the City and shall include in such notice the reasons for cancellation.

In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; the City, however, may condition payment of such compensation upon Consultant delivering to the 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. The 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 the City grants such an extension, the 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, the 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. The 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 the 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 the 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, the City’s remedies shall include, but not be limited to, the following:
43 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

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

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 the City would have paid Consultant pursuant to Section 2 if Consultant had completed the work
SECTION 9 - MISCELLANEOUS PROVISIONS

9.1 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.

9.2 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 in which the City is located.

9.3 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.

9.4 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.

9.5 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.

9.6 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.

9.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of the 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 the City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. 44 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

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. 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 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.

As of the date of the Agreement, there are no actual or potential conflicts of interest that Consultant is aware of that might impair its ability to render unbiased and competent advice or to fulfill its fiduciary duty. If Consultant becomes aware of any potential conflict of interest that arise after this disclosure, Consultant will disclose the detailed information in writing to the City in a timely manner.

The fee paid to Consultant increases the cost of investment to the City. The increased cost occurs from compensating Consultant for municipal advisory services provided.

Consultant does not function as principal in any of the transaction(s) related to this Agreement.

During the term of the municipal advisory relationship, this agreement will be promptly amended or supplemented to reflect any material changes in or additions to the terms or information within this agreement and the revised writing will be promptly delivered to the City.

9.8 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.

9.9 Contract Administration. This Agreement shall be administered by the City General Manager (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his or her designee.
45 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

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

Eric Scrive, Principal
NHA Advisors, LLC
4040 Civic Center Drive, Suite 200
San Rafael, CA 94903
Any written notice to the City shall be sent to:

City Manager
City of Gonzales
147 Fourth Street
Gonzales, CA 93926

10.11 Integration. This Agreement, including the Scope of Services attached hereto and incorporated herein as Exhibits A, B and C represents the entire and integrated agreement between the City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral.

Exhibit A: Scope of Services
Exhibit B: Compensation Schedule
Exhibit C: Disclosures of Conflicts of Interest and Legal or Disciplinary Events

10.12 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.

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

CITY OF GONZALES NHA ADVISORS, LLC
____________________________ ______________________________ Carmen Gil, City Manager Eric Scriven, Principal
46 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

EXHIBIT A

SCOPE OF SERVICES
“ON-CALL” GENERAL / FINANCIAL CONSULTING &
MUNICIPAL ADVISORY / FUNDING STRATEGY DEVELOPMENT—IMPLEMENTATION SERVICES A) “ON-CALL” GENERAL AND FINANCIAL CONSULTING SERVICES: Consultant may serve City on an as-needed, “on-call” basis in different roles such as “extension of staff” projects, providing research, ideas, advice, education and presentation of relevant topics to City stakeholders (elected officials, staff, citizens, etc.) and lead or assist City in developing and implementing programs, policies and/or practices that enhance City’s financial and operational outcomes.

This scope of work may pertain to general areas of Consultant’s expertise in the following practice areas.

A sample of recent, successfully delivered assignments include, but are not limited to, the following types of projects and/or deliverables:
 Financial risk or Fiscal
Sustainability
Assessment,
 CalPERS education,
review and forecasting,
 Utility enterprise capital
and operations financial
forecasting,
 Financial and risk
management policies
review,
 OPEB modeling and
analysis,
 Strategic capital
planning,
 “Green” energy project
financial review,
 Public-private
partnership design,
review and analysis,
 New development
financial analysis and
planning,
 Community facilities /
assessment district
formation,
 Subsidized loan / grant
project management,
 Voter approved
revenue measure preelection financial and
project management
assistance,
 Post-issuance
compliance including
continuing disclosure,
and credit rating
surveillance services.
47 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

B) MUNICIPAL ADVISORY / FUNDING STRATEGY DEVELOPMENT & IMPLEMENTATION SERVICES:

Consultant, as fiduciary, agent and “quarterback” for City achieving its funding goals will work in a two-phase process to develop and execute the City’s directed/preferred approach to a Project funding strategy.

This scope of work will usually entail the following approach and process:

Task 1: Plan of Finance Development
 Due Diligence (Listening & Investigating to Understand ”Internal” and “External” Existing Conditions)
 Interview City to develop understanding of the goals and desired outcomes from development/acquisition/construction of project to be funded  Understand potential cost range for potential projects, schedule for project implementation, from planning through construction, and operational costs for potential projects
 Identify existing City resources (i.e. liquid or illiquid assets, dedicated pay-as-you-go and/or grant funding) already committed for the potential projects  Review reports or studies of other City consultants related to the potential projects and funding options
 If appropriate, review existing debt covenants, including rate covenants (for utilities) and additional bonds tests
 If appropriate, review other existing contractual constraints / covenants  Determine Debt Financing Capacity and Evaluate Financing Options / Scenarios  As required, develop revenue and expense projections for the specific fund(s) using a combination of audited financials, budget materials, other consultant projections (rate studies, if applicable), and discussions with City staff 48 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

 Using revenue and expense projections, develop a financial forecasting model to ascertain coverage based on identified financing options and research including:
 Financed capital expenditures
 Pay-as-you-go capital expenditures
 Restructuring of existing obligations (if any)
 Potential future rate increases (high level analysis only, NHA is not a rate consultant) and/or other identified, approved new tax or revenue sources  Evaluate pros and cons of financing options available to fund capital projects including a combination of:
o Reserves, Internal (i.e. interfund) loans, pay-as-you-go funding sources, utilization of other existing assets
o State or federal subsidized loan and/or grant funding sources (e.g. USDA, SRF, WIFIA, I-Bank, etc.)
o Revenue bonds and/or certificates of participation
 Other unique opportunities uncovered during due diligence (Federal or State earmarks, local fundraising opportunities, etc.)
 Determine magnitude of potential financial impacts (i.e. expenditure modifications / tradeoffs) to support debt service under a variety of financing alternatives / scenarios (i.e. “stress testing”)
 Communication / Presentation of Options for City Review and Decision-Making  Develop and deliver comprehensive, understandable PowerPoint presentation(s) outlining background, objectives, analysis, and options. Also, provide education, as required/requested regarding background on various funding alternatives. 49 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

Task 2: Plan of Finance Execution / Implementation
 Project Management
 Manage the financing process, including assembly of the financing team, as requested / required and assignment of tasks for all parties involved in the financing.
o As needed and upon request, undertake qualification / solicitation of such other team members and, in some instances, funding sources. This effort may include registered broker-dealer, bond/disclosure counsel, trustee, grant writers, revenue measure (i.e. election and polling) consultants, service and impact fee consultants, cost of service rate study consultants, lobbyists. Additionally, certain funding sources (i.e. I-Bank) require an upfront evaluation with respect to rates/terms/timeline in initial stages of funding plan formulation.
o As requested / directed by City, provide recommendation(s) and negotiate preferred terms and fees for said consultant(s).
 Provide information and advice on the timing of the financing process and develop a timeline (schedule) of tasks.
o If applicable, work with grant writer(s) or lobbyist(s), identify grant application deadlines and cycles for all potential grant programs that the project may be eligible for
o If applicable, for each potential project, delineate the phase of project development that is suitable for each type of grant, i.e. planning, engineering design, permitting and construction
 Provide assistance and advice, as needed, with respect to assembling the necessary due diligence data requirements that will be requested from the various 50 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

funding sources, as well as other third-party participants (i.e. credit rating agencies, bond insurance providers, grant writers, tax attorneys, etc.).  Quantitative Analysis, Comparisons and Financial Structuring  Continue to advise the City on available funding sources/programs (including loans, bonds, grants, subsidized state and federal programs) with respect to their rates, terms and timing.
 Analyze / evaluate availability and suitability of funding sources in conjunction with City’s objectives, constraints and requirements
o As needed, continue to engage in discussions with key market participants (i.e. state/federal loan program representatives, banks, bond insurers, bond lawyers, rating agencies, broker-dealers) to quantify and qualify the various options
 As applicable, continue to develop / evaluate various full Project funding “capital stack” options for City’s review and consideration
 If applicable, determine likely increases (at a high level) in utility rates to support debt service required for each Capital Stack scenario  Project Implementation
 Coordinate the efforts of all assembled team members for due diligence data collection and curation for legal, disclosure (if applicable) and credit documentation.
 Coordinate bond counsel, disclosure counsel, and/or any other legal counsel to prepare the financing documents for approval by the City [Keywords]. o Review and provide comments to financing documents to ensure consistency with the overall funding plan and goals of City.  As required and/or upon request, make presentations or attend meetings with the City [Keywords] or stakeholders to answer questions about the funding plan/strategy, its objectives and process.
 Work with selected financing partner(s) or funding source(s) to determine optimal structure, including serial/term bonds, premium/discount bonds, redemption provisions and repayment “shape.”
 If a private placement method of sale is utilized:
o Assist with the preparation of a credit package for potential institutional / sophisticated investors (i.e. banks).
51 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

o Ensure required annual disclosures/reporting requirements to successful financial institution is feasible within City’s existing capabilities and processes.
o If a placement agent has been engaged, oversee placement agent’s solicitation process, assist with the selection of the financing provider, and assist with the negotiation of terms, as necessary.
o Manage / negotiate loan pricing and final financing structure (debt service and bond terms).
 If a public offering method of sale is utilized:
o Coordinate preparation of a comprehensive credit presentation to the rating services and bond insurance companies, if applicable. o Work with disclosure counsel to prepare, review, provide comments, and print the preliminary and final official statements.
o If completed as a negotiated sale, monitor the underwriter's sales effort and assist the City with the negotiation of underwriting spreads and interest rates for the proposed financing.
o If completed as a competitive sale, engage a nationally recognized firm to widely distribute the offering documents to potential investors, establish a bidding platform, coordinate the required noticing for and conduct the execution of the competitive sale on the prescribed advertised date.  If grants or state/federal legislative earmarks are identified and feasible:
o Coordinate with City’s grant writer(s) and lobbyist to evaluate and plan for integration of these zero cost funds into the overall funding plan.  If state/federal subsidized loans and grant programs are identified as appropriate, eligible/available and feasible:
o Depending upon Consultant’s role, serve either as 1) project manager and lead/coordinator for full Program Package submissions or 2) work closely with designated project manager and serve as municipal advisor for the specific sections of the Program Package relating to credit and financial matters.
 For most programs, a “preliminary” package must be submitted for initial review whereupon, if deemed acceptable by the
state/federal funding program, there then will be an “invitation to submit” a formal/full package requesting funds. USDA, WIFIA, IBank utilize this 2-step process. 52 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

 Processing from preliminary evaluation to Program delivery of funds can take anywhere from 4 months up to 18-24 months (or more).
 As requested, assist with the solicitation of an investment advisor to coordinate investment of bond proceeds and/or accounts, as necessary.  Work with bond counsel, disclosure counsel (or other counsel), and all other financing team members to finalize documents for execution by the City.  As requested / required prepare or coordinate preparation of a closing memorandum outlining a secure and detailed flow of funds at the time of closing.  As requested, prepare and deliver presentations to executive staff, elected officials or other stakeholders with respect to the funding process and results. 53 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

EXHIBIT B

COMPENSATION SCHEDULE
A) “ON-CALL” GENERAL AND FINANCIAL CONSULTING SERVICES:

This is NOT a retainer form of contract. As
such, the City controls whether Consultant
services are utilized. If no services are
requested by City and performed by
Consultant, no compensation will be due.

Consultant’s on-call general and financial
consulting compensation shall be based
upon the hourly rate schedule provided in
the table to the right. Upon Consultant’s
understanding of the required scope of
services / deliverables for a specific
consulting project, an estimated not-toexceed budget for services will be provided, but in no instance shall total
compensation paid to Consultant during
each fiscal year of the term of this agreement exceed Fifty Thousand and No/100 Dollars ($50,000.00) without the City Council’s approval of an amendment to this Agreement.

B) MUNICIPAL ADVISORY / FUNDING STRATEGY DEVELOPMENT & IMPLEMENTATION SERVICES:

TASK 1: PLAN OF FINANCE DEVELOPMENT: Consultant
will always provide objective advice when delivering
funding strategies. This work then must not conflict with the ultimate compensation structure to the Consultant.

Therefore, Consultant believes that an agnostic, researchbased work product requires compensation on a noncontingent fee basis. Further, Consultant believes that compensation for strategic funding advice should not ever be based upon the size of a transaction. In our experience, sometimes information comes to light during our
diligence that necessitates a different funding approach (or even recommending termination of the effort). Consultant is convinced that it is incumbent upon us, as a fiduciary, to provide those options and that related advice.

Therefore, Consultant prefers a two-phase compensation structure that separates general planning/advisory and initial work on a potential transaction into a “Task 1” approach, which includes hourly compensation (subject to rate table shown above) to ensure that there is no perceived conflict through recommendations or development of funding alternatives. Upon Professional Services (Hourly) 2025
Rates(1)(2)
Principal $370
Director / Senior Vice President $345
Vice President $320
Assist. Vice President / Sr. Associate $295
Associate $270
Senior Analyst $235
Analyst $210
Administrative $135
1) Hourly rates will escalate by 3% annually each January 1st (rounded to the nearest five dollars based on the
prior year’s rounded amount).
2) Effective hourly rates shown in invoices may be reduced to incorporate non-billable time.
54 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

Consultant’s understanding of the required scope of services / deliverables for plan of finance development, an estimated not-to-exceed budget for Task 1 services will be provided.

TASK 2: PLAN OF FINANCE IMPLEMENTATION: Once City staff or elected officials commit to, and direct Consultant to implement, a financing plan, the Project will pivot from Task 1 services (“Plan of Finance Development”) to Task 2 services (“Plan of Finance Implementation”). Once Task 2 phase commences, compensation will be dependent upon the identified funding method(s) which may include various grants, negotiated partnerships, advantaged, privately arranged, or market rate loan programs, publicly offered bonds or a combination thereof. The fee for these services is based on a number of factors, including the number of sources of funds pursued, the role and responsibilities that Consultant will undertake, the financing method of sale, structure, and complexity. Ultimately, compensation depends upon the time expected to be required to manage the process for all aspects of the financing plan to a successful outcome for the City.

Consultant will provide a more detailed and definitive cost proposal for a specific Task 2 project if/when clear (or assumed) parameters on existing conditions, timelines, deliverables and expected Consultant contributions are provided.

Expenses (Out-of-Pocket)
All expenses will be billed directly at cost to the City. Expenses will be limited to those necessary for completion of the Project.
55 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

EXHIBIT C

DISCLOSURES OF CONFLICTS OF INTEREST AND LEGAL OR DISCIPLINARY EVENTS Pursuant to Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, on Duties of NonSolicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of NHA Advisors, LLC (“Consultant”) and its associated persons.

Conflicts of Interest
Compensation
In connection with the issuance of municipal securities, Consultant may receive compensation from City of Gonzales (the “City”) or Obligated Person for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G-42, Consultant hereby discloses that such contingent and/or transactional compensation may present a potential conflict of interest regarding Consultant’ ability to provide unbiased advice to enter into such transaction. This potential conflict of interest will not impair Consultant’ ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City.

It should be noted that other forms of compensation (i.e., hourly or fixed fee based) may also present a potential conflict of interest regarding Consultant’ ability to provide advice regarding a municipal security transaction. These other potential conflicts of interest will not impair Consultant’ ability to render unbiased and competent advice or to fulfill its fiduciary duty to the City.

Other Municipal Advisor Relationships
Consultant serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another Consultant client. For example, Consultant serves as municipal advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to the City. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, Consultant could potentially face a conflict of interest arising from these competing client interests. Consultant fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with City.

Furthermore, from time to time, Consultant may perform non-municipal advisor work for entities that also could be a municipal advisor client or could become a municipal advisor client.

If Consultant becomes aware of any additional potential or actual conflict of interest after this disclosure, Consultant will disclose the detailed information in writing to the City or Obligated Person in a timely manner.
56 Municipal Advisor Agreement between
City of Gonzales and NHA Advisors, LLC
June 1, 2026

Legal or Disciplinary Events
Consultant does not have any legal events and disciplinary history on its Form MA and Form MAI, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The City may electronically access Consultant’ most recent Form MA and each most recent Form MA-I filed with the Commission at the following website:
www.sec.gov/edgar/searchedgar/companysearch.html
There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the U. S. Securities and Exchange Commission (“SEC”).

Municipal Securities Rulemaking Board Rule G-10 Disclosure Pursuant to MSRB Rule G-10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which include the following:
 Consultant is currently registered as a Municipal Advisor with the SEC and MSRB.  Within the MSRB website at www.msrb.org, the City may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure describes the protection that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities.
57 CITY OF GONZALES
AGENDA
ITEM

6.4 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-27, A Resolution of the City Council of the City of Gonzales Approving a Memorandum of Understanding with the Boys and Girls Club of Monterey County for Program Services to be Delivered at the Dennis and Janice Caprara Community Center Complex’s Teen Center from August 13, 2026, through June 10, 2027

CITY MANAGER

RECOMMENDATION
It is recommended that the City Council approve Resolution No. 2026-27, A Resolution of the City Council of the City of GonzalesApproving a Memorandum of Understanding with the Boys and Girls Club of Monterey County for Program Services to be Delivered at the Dennis and Janice Caprara Community Center Complex’s Teen Center from August 13, 2026, through June 10, 2027.

BACKGROUND
With just over five months into the partnership with the Boys and Girls Club of Monterey County (The Club), conversations and advocacy from their CEO, the City Manager, and Armanasco Public Relations Inc. led to the generous donation from an anonymous donor to support ongoing programming in Gonzales. This generous donation, through the Boys and Girls Club, in the amount of $2 million dollars, will help offset program costs for the next four years so that The Club can continue to operate in the community and provide Gonzales youth an opportunity to access their programs.

This support is huge for the City as it helps offset additional programming costs we would have to incur to fully program the Center. Now, that The Club will be programming Tuesday - Friday from 1:00pm – 6:00pm, we will only have to worry about programming on the other days and it will still be available to us for use before 1:00pm.

REVIEWAND ANALYSIS
This support for programming is huge for us, and it could not come at a better time. The partnership does not only allow us to offer diverse programming to our youth, but it also helps us fill a gap in the community. 58 The programs that will be provided on a weekly basis will include College and Career Readiness, which include interactive sessions that prepare teens for life after high school; Social Emotional Learning, which consists of ageappropriate programs delivered sequentially in age-based cohorts; Healthy Lifestyles will include wellness aspects to educate youth in areas of healthy habits, proper and physical fitness; and Case Management, which supports goal setting and academic monitoring.

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

Explain: This MOU supports the City’s Mission and Vision as it builds on the efforts to bring in a Community Center to the City where we can help youth explore career development opportunities and give them the tools to innovate. It helps ensure that we have the right programs in place and that we are not starting from scratch, which would be more costly for the City.

Explain how the Recommendation Directly Implements the Vision The City Council and Staf 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: See above for explanation.

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 X Yes __ No __ N/A
Explain: Please see explanation above for the Vision.

ALTERNATIVES
The Council can choose not to approve this Agreement, which would make it harder for staff to figure out how to program the entire Center with already limited capacity.

BUDGET IMPACT
Fortunately, the additional costs for programming and staff will be covered by the generous donation of an anonymous donor that would like to support the Gonzales and Boys and Girls Club partnership. We can’t be more thankful for their kind, and thoughtful donation as their contribution will have a tremendous, transformational impact to our community.

CONCLUSION
It is recommended that the City Council approve Resolution No. 2026-27, A Resolution of the City Council of the City of GonzalesApproving a Memorandum of Understanding with the Boys and Girls Club of Monterey County for Program Services to be Delivered at the Dennis and Janice Caprara Community Center Complex’s Teen Center from August 13, 2026, through June 10, 2027.
59 ATTACHMENTS:

Resolution No. 2026-27
MOU with Boys & Girls Club
60 RESOLUTION NO. 2026-27

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES APPROVING A

MEMORANDUM OF UNDERSTANDING WITH THE BOYS AND GIRLS CLUB OF

MONTEREY COUNTY FOR PROGRAM SERVICES TO BE DELIVERED AT THE DENNIS AND JANICE CAPRARA COMMUNITY CENTER COMPLEX’S TEEN CENTER FROM AUGUST 13, 2026 THROUGH JUNE 10, 2027
WHEREAS, the Boys and Girls Club of America was initiated in 1860 by four women in Hartford Connecticut believing that boys who roamed the streets should have a positive alternative; and WHEREAS, in 1990 it was recognized that girls were also part of the cause, and thus the name was changed to the Boys and Girls Clubs of America.

WHEREAS, today, the Boys and Girls Clubs of Montrey County (BGCMC) have been operating for over sixty years and have become a staple in the communities in which they reside; offering enrichment after-school programs and summer programs for youth ages 6-18 that include sports leagues, STEM labs and camps that provide exciting ways for kids to learn and grow; and WHEREAS, the BGCMC has been providing a variety of program options in the City of Gonzales over the years, primarily through the schools, however, they have been waiting patiently to establish a more permanent presence for a long time; and
WHEREAS, the BGCMC was part of the initial conversation over a decade ago regarding potential programming at a future youth center in Gonzales and today that vision has become a reality; and WHEREAS, through the initiation of our partnership, it was determined that the Boys and Girls Club’s presence was needed and welcomed in Gonzales; and WHEREAS, after just a few months of successful programing, the Boys and Girls Club received a generous donation in the amount of $2 million to continue offering programming in the City of Gonzales for the next four years; and
WHEREAS, the approval of this MOU would allow the partnership to continue through June 10, 2027.

NOW THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Gonzales hereby Approves the MOU between the City and the Boys and Girls Club of Monterey County, attached as Exhibit A.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting held on the 1
st day of June 2026, 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
61 MEMORANDUM OF UNDERSTANDING
BETWEEN Boys & Girls Clubs of Monterey County, AND The City Of Gonzales This Memorandum of Understanding ("MOU" or "Agreement") is made this 29 day of May, 2026 ("Effective Date") by and between the City of Gonzales, and the Boys & Girls Clubs of Monterey County (BGCMC) a nonprofit organization, collectively referred to as "Parties”. The intent of this contractual agreement is to clarify the respective roles and responsibilities of the partnership.

PURPOSE
Together, the Parties enter into this Memorandum of Understanding for the purpose of BGCMC implementing Youth Development Programming at The Teen Innovation Center located in the Gonzales Community Center at 620 Fifth Street, Gonzales, CA 93926 and other designated facilities upon agreement. BGCMC’s staff will provide youth development programming that empowers young people to make healthy and informed choices.

AGREEMENT RECITALS
NOW, THEREFORE, in consideration of the covenants and conditions of this Agreement, including the recitals hereof, which are incorporated herein by this reference, the City of Gonzales and Boys & Girls Clubs of Monterey County (BGCMC), agree as follows:

A. BGCMC will provide youth development programming from Tuesday to Friday (excluding federal holidays and Gonzales City sponsored special events) for 75 to 100 youth from August 13, 2026 to June 10, 2027 from 1:00 pm to 6:00 pm.

Agreements and Outcomes: BGCMC will provide orientations introducing the program offered. BGCMC will ensure all new staff members complete background checks necessary to ensure safety. BGCMC will adhere to the City of Gonzales safety policies and provide copies of all parental releases upon request. BGCMC agrees to follow all partner requirements for organizational liability insurance.

B. This program is free of charge.

C. The City of Gonzales provides office and storage space for BGCMC staff during regular weekday operating hours. The City of Gonzales is responsible for janitorial maintenance, furnishings and program technology equipment. A City of Gonzales supervisor is accessible during program hours. There is no facility use fee assessed to BGCMC.
1 EXHIBIT A
62 NOW, THEREFORE, in consideration of the covenants and conditions of this Agreement, including the recitals hereof, which are incorporated herein by this reference, the City of Gonzales and the BGCMC, agree as follows:

1. Recitals. The above recitals are true and correct.

2. Term. The term of this Agreement shall be from August 1, 2026, through June 30, 2027, unless earlier terminated as provided herein or extended by written agreement signed by either Party.

3. Termination: Either Party may terminate this Agreement upon not less than thirty (30) days written notice to the other party, with or without cause. Such termination automatically shall take effect on the 31st day following such notice, or on such later date as specified in the notice or as the Parties may agree in writing. Such written notice shall be sufficient to stop further performance of services by BGCMC.

4. Independent Contractor: Employment Status. While engaged in carrying out the terms and conditions of this Agreement, BGCMC is an independent contractor, and not an officer, employee, agent, partner, or joint ventures of the City of Gonzales. All BGCMC employees providing any services under this Agreement, are solely the employees of BGCMC and shall have no right to employment or benefits of any kind from the City of Gonzales. BGCMC assumes full responsibility for payment of all federal, state, and local taxes or contributions, unemployment insurance, workers compensation and social security with regard to employees providing services under this Agreement. BGCMC shall have sole responsibility for employment, management, dismissal and discipline of its employees providing services under this Agreement.

5. Reporting, Fingerprinting, and Authorization of Personnel. BGCMC shall ensure that its employees, contractors and subcontractors or volunteers who provide services to City of Gonzales students under this Agreement have complied with the fingerprinting and criminal background investigation requirements set forth in Education Code sections 45125.1 and 45125.2. Upon execution of this Agreement, BGCMC shall provide the City of Gonzales with a list of all employees, contractors, subcontractors, or volunteers providing services at the designated site. Additionally, BGCMC will provide ongoing documentation of engagement of a new employee, contractor, subcontractor or volunteer. Included in such documentation shall be assurance from BGCMC that it is not aware of any criminal conviction or propensity making the employee, contractor, subcontractor, or volunteer unsuitable for contact with youth.

6. Indemnity, Insurance, and Defense. Boys & Girls Clubs of Monterey County 2 63
(BGCMC) shall maintain in full force throughout the term of the agreement, at its own expense, a policy of comprehensive liability insurance, which will ensure the City of Gonzales and BGCMC against liability for injury or death of persons and damage to City of Gonzales facilities, arising from BGCMC programming and activities and use of classrooms or other City of Gonzales facilities under this Agreement. The policy shall include liability insurance coverage for molestation, physical/mental abuse, and child abuse. ($1 million and $3 million aggregate.) The policy shall include coverage limits of not less than $1,000,000 per occurrence for any one person injured or killed and not less than $1,000,000 for property damage and shall be maintained on a per occurrence basis. Prior to the commencement of any BGCMC programming or activities under this Agreement, BGCMC shall provide the City of Gonzales with a certificate of insurance, naming the City of Gonzales as an additional insured, and including a statement that the policy shall not be reduced or canceled without thirty (30) business days written notice to the City of Gonzales and BGCMC. Any altered or terminated insurance policy shall be replaced with an insurance policy meeting the requirements of this section so that the terms of the replacement policy become effective no later than the termination or alteration of the prior policy. BGCMC shall defend, indemnify, and hold harmless the City of Gonzales, its elected and appointed officials, officers, employees, agents, volunteers, and contractors from and against any and all claims demands, causes of action, liabilities, losses, damages, or expenses of any kind or nature arising from BGCMC’s intentional, negligent or willful act or omission related to this Agreement or use of classrooms or other City of Gonzales facilities pursuant to this Agreement. This section shall survive termination of the Agreement.

7. Assignment: BGCMC shall not assign or transfer any of its obligations, rights, or duties under this Agreement. Any such purported assignment or transfer shall be void, and shall constitute a breach of this Agreement.

8. Notices: All notices, certificates, or other communications hereunder shall be deemed given when personally delivered or mailed by certified mail, postage prepaid, to the Parties at the addresses set forth below:

City of Gonzales:
147 Fourth St. Gonzales, CA 93926
Boys & Girls Clubs of Monterey County:
1332 La Salle Ave., Seaside, CA 93955

9. Change of Address for Notices: The Parties may change their addresses for this Agreement by giving written notice of such change in the manner prescribed above to the other Party to this Agreement.

10.Entire Agreement: This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and no prior agreement, statement, promise, or representation made by any Party, employee, officer, or agent which is not contained herein shall be binding or valid. 3 64

11. Severability: If any provision or any part of this Agreement is for any reason held to be invalid and/or unenforceable or contrary to public policy, law, statute, or ordinance by a court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby and shall remain valid and fully enforceable.

12.Governing Law/Venue: This Agreement shall be governed by and interpreted under the laws of the State of California applicable to instruments, persons, transactions and subject matter which have legal contacts and relationships exclusively within the State of California. Any action or proceeding seeking any relief under or with respect to this Agreement shall be brought solely in the Superior Court of the State of California for Monterey County, subject to any transfer of venue as required by law.

13.Amendment of Agreement. This Agreement cannot be changed or supplemented orally and may be modified or superseded only by a written instrument executed by duly authorized representatives of each of the Parties.

14.Execution in Counterpart. This Agreement is executed through Docusign after all Parties have signed the agreement.

15.Headings and Captions. The captions and headings appearing in this Agreement have been inserted for convenience and ready reference. They do not purport to and shall not be deemed to define, limit, or extend the scope or intent of the clauses to which they pertain.

16.Binding Effect. This Agreement is for the benefit of and shall be binding on all parties and their successors, assigns, heirs, executors, administrators, predecessors, partnerships, employees, attorneys, insurers, sureties, agents, representatives, directors, officers, receivers, trustees, and/or stockholders.

17.Authorized Signature. Each of the persons signing this Agreement represents and warrants that such person has been duly authorized to sign this Agreement on behalf of the Party indicated, and each of the Parties by signing this Agreement warrants and represents that such Party is legally authorized and entitled to enter into this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first herein written.

Ron Johnson, President & CEO, Boys & Girls Clubs of Monterey County Signature ____________________________________ Date_________________ Carmen Gil, City Manager, City of Gonzales, California
Signature ____________________________________ Date_________________ 4 65

CITY OF GONZALES
AGENDA
ITEM

7.1 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Continuance of the FY 2026-2027 Cost for Services Fee Schedule Item

FINANCE DEPARTMENT

RECOMMENDATION
Continue the FY 2026-2027 Cost for Services Fee Schedule Item to the City Council meeting of June 15, 2026 ATTACHMENTS:

Public Hearing Notice - June 1, 2026
66 67

CITY OF GONZALES
AGENDA
ITEM

7.2 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 1, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-26, A Joint Resolution of the City Council of the City of Gonzales and the Successor Agency of the City of Gonzales Redevelopment Agency Approving Interim Funding For Fiscal Year 2026-2027 and Continuing the Budget Until August 31, 2026

CITY MANAGER

RECOMMENDATION
It is recommended that the Council/Agency adopt Resolution No. 2026-26, A Joint Resolution of the City Council of the City of Gonzales and the Successor Agency of the City of Gonzales Redevelopment Agency Approving Interim Funding For FiscalYear 2026-2027 and Continuing the Budget UntilAugust 31, 2026.

BACKGROUND
Given that Gonzales voters will be deciding on (Measure B) the Parcel Tax Measure on June 2 nd will impact the FY
2026-2027 budget, staff is proposing Resolution No. 2026-26 that would authorize continued operations of Fiscal Year 2025-2026 at adjusted budget levels for a two-month period from July 1, 2026 through August 31, 2026, while the City completes development review of the Fiscal Year 2026-2027 Budget. An interim funding approach is necessary due to uncertainty surrounding the outcome of the June 2 nd election and the parcel tax funding for the fire
and emergency services, as well as ongoing negotiations with Gonzales Professional Firefighters Local #5388 for a new contract. Should the parcel tax measure pass, the City expects to finalize the budget promptly; however, if the measure does not pass, service reduction may be necessary to maintain a balanced budget.

REVIEWAND ANALYSIS
There is no statutory requirement that a general law City such as the City of Gonzales have an approved budget.

However, as a practical matter, there is a requirement that the City/Agency may not incur indebtedness greater than the income and revenue without 2/3 voter approval. Without a budget, it would be difficult to comply with this requirement. Due to the timing of the decision of the parcel tax, it is best if the City waited a few weeks before adopting a new budget as the decision will have a direct impact on the FY 2026-2027 budget. In the past, the City of Gonzales has passed a similar resolution to continue the budget and other Cities like Soledad, who are in a similar 68 situation, are also choosing to continue their budget into August 31, 2026, pending the outcome of the June 2, 2026, election.

Thus, to allow for full consideration of the FiscalYear 2026-2027 Budget, staff is recommending the Council/Agency adopt a resolution providing interim spending and setting budget levels as adjusted in the Fiscal Year 2025-2026 Budget. Staff is recommending setting the interim spending limit of two months. Such authority will allow the City/Agency to continue normal operations from July 1, 2026, through August 31, 2026. Providing temporary spending authority will ensure continuity of City and Agency operations while allowing staff additional time to finalize a fiscally balanced FY 2026-2027 Budget.

There is no statutory or local Code Impediment to the adoption of such a resolution.

Explain Recommendation and How it Supports the Mission
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: Continuing the current budget into August 31, 2026, will help ensure we have the results of the June 2 nd
election and have the accurate numbers to prepare the FY 2026-2027 Budget with.

Explain how the Recommendation Directly Implements the Vision The City Council and Staf 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: Continuing the Budget throughAugust 31, 2026, will support the City in continuing to realize the vision by ensuing that City operations continue to run without interruption.

City services will be delivered in a cost-ef ective, respectful and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes __No __N/A
Explain: Ensuing we have accurate numbers when preparing the budget will help us ensure that we stay within the allocated appropriation.

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: In order for the City to effectively continue its operations, we need to have the most accurate numbers to develop a Budget for Council approval as the level of appropriations will determine future programs and services and what the budget can handle going forward.

ALTERNATIVES
Council can decide to modify (shorten or lengthen) the interim time frame; or Provide additional direction to staff.
69 BUDGET IMPACT
As noted above, approval of the resolution will allow the City/Agency to continue normal operations and projects and pay its bills (payroll, supplies and services) for a two-month period.

CONCLUSION
It is recommended that the Council/Agency adopt Resolution No. 2026-26, A Joint Resolution of the City Council of the City of Gonzales and the Successor Agency of the City of Gonzales Redevelopment Agency Approving Interim Funding For FiscalYear 2026-2027 and Continuing the Budget UntilAugust 31, 2026.

ATTACHMENTS:

Joint Resolution No. 2026-26
70 RESOLUTION NO. 2026-26

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES AND

THE SUCCESSOR AGENCY OF THE CITY OF GONZALES REDEVELOPMENT AGENCY APPROVING INTERIM FUNDING FOR FISCAL YEAR 2026-2027 AND CONTINUING THE BUDGET UNTIL AUGUST 31, 2026
WHEREAS, the City of Gonzales (“City”) and the Successor Agency of the City of Gonzales Redevelopment Agency (“Successor Agency”) are currently developing the Fiscal Year 2026-2027 Budget; and
WHEREAS, the City Council approved Resolution No. 2026-04 placing a parcel tax measure for fire and emergency medical services on the June 2, 2026 ballot; and WHEREAS, the outcome of the June 2, 2026, election will significantly impact the City’s Fiscal Year 2026-2027 Budget and may require substantial service adjustments should the measure not pass; and
WHEREAS, the City will also be engaging in negotiations with Gonzales Professional Firefighters Local #5388 soon regarding a new service contract; and WHEREAS, temporary spending authority is necessary to ensure continuity of City and Successor Agency operations, including payment of payroll, supplies, services and ongoing projects during the interim period; and
WHEREAS, there is no statutory or local code impeding the adoption of an interim funding resolution.

NOW THEREFORE, BE IT RESOLVED, by the City Council and the Successor Agency of the City of Gonzales Redevelopment Agency as follows:

Section 1. The City Council and Successor Agency hereby authorize interim funding for Fiscal Year 2026-2027 at the adjusted Fiscal Year 2025-2026 budget levels.

Section 2. Such interim funding authority shall be effective for the period beginning July 1, 2026, and ending August 31, 2026, unless superseded earlier by adoption of the Fiscal Year 2026-2027 Budget.

Section 3. The interim funding authority granted by this Resolution shall permit the City and Successor Agency to continue normal operations and expenditures, including payroll, contractual obligations, supplies, services, and ongoing projects.

Section 4. Staff are directed to continue preparation of the Fiscal Year 2026-2027 Budget and return to the City Council and Successor Agency for formal budget adoption following completion of the budget development process and consideration for fiscal impacts related to the June 2, 2026, parcel tax election. 71 PASSED AND ADOPTED by the City Council of the City of Gonzales and the Board Members of the Successor Agency of the City of Gonzales Redevelopment Agency at a regular meeting held on the 1st of June , 2026, by the following vote:

AYES: COUNCIL/AGENCY MEMBERS:

NOES: COUNCIL/AGENCY MEMBERS:

ABSTAIN: COUNCIL/AGENCY MEMBERS:

ABSENT: COUNCIL/AGENCY MEMBERS:

Jose L. Rios, The Honorable Mayor/Chair
I, the undersigned Deputy City Clerk, hereby certify that the foregoing resolution was duly and regularly adopted and passed by the City Council of the City of Gonzales and the Successor Agency of the City of Gonzales Redevelopment Agency, at a regular meeting thereof held on the 1 st day of
June 2026, by the above-stated vote of the members thereof, a majority being present.

Dated: June 1, 2026
_______________________________________
Mary Villegas, Deputy City/Agency Clerk
72