Agenda packet — Gonzales City Council, July 20, 2026 (part 2 of 2)

Note is made of the fact that once again, fiscal costs in the California Breeze districts will exceed allowable maximum assessments that cannot be increased.

The fees for 2026-2027 will be as follows:

California Breeze BenefitAssessment District
No. 1 - Per House $187.00
No. 1 - Commercial $141.14
No. 2 - Per House $185.34
No. 3 - Per House $234.68
California Breeze Parks and Open Spaces MaintenanceAssessment District Phase 1 -Per House $227.00
Phase 1 - Commercial $88.90
Phase 2 - Per House $227.00
400
Phase 3 - Per House $271.76
Canyon Creek BenefitAssessment District
No. 1 - Per House $606.00
No. 2 - Per House $606.00
No. 3 - Per House $606.00
No. 3 MDR - Per Unit $606.00
Canyon Creek Parks and Open Spaces MaintenanceAssessment District No. 1 - Per House $606.00
No. 2 - Per House $606.00
No. 3 - Per House $490.86
No. 3 MDR - Per Unit $490.86
Gonzales Industrial Park BenefitAssessment District
PerAcre $1,571.02
Gonzales Industrial Park Landscape MaintenanceAssessment District PerAcre $600.76
Cipriani Estates BenefitAssessment District
Per House $703.74
Lots 1-7 - $1,092.00 (base assessment plus additional Storm Drain Maintenance charge) Cipriani Estates Parks and Open Spaces MaintenanceAssessment District Per House $674.68
All funds collected for each district will be used for the routine maintenance and operation of the public improvements and facilities identified in each Engineer’s Report, labor, overhead, and staff costs, and for maintaining capital reserve fund balances.

Staff recommends that the Council adopt each of the resolutions confirming district diagrams and assessments and levying said assessments in the respective Benefit and Landscape MaintenanceAssessment Districts.

Explain Recommendation and How it Supports the Vision.

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

Explain: The assessments fund the maintenance of various improvements located within the involved subdivisions.

Regular and routine maintenance of such improvements helps to preserve the safe and attractive environment the City strives to provide for its citizens.

X Yes ___No ___NA
Explain:Collection of the assessments will provide financing for the maintenance of a variety of improvements that enhance the quality of life in both the involved subdivisions and the City as a whole.

City services will be delivered in a cost-ef ective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an 401
environmentally sustainable manner. X Yes ___No ___NA
Explain: The proposed assessments will allow the City to maintain a variety of improvements that ensure residential safety and promote local housing opportunities by maintaining a healthy housing stock.

Strong fiscal policies allow us to provide appropriate infrastructure for:

Public Safety X Yes __ No __ N/A
Housing X Yes __ No __ N/A
Recreation Yes __ No X N/A
Environment Yes __ No X N/A
Education Yes __ No X N/A
Explain: The creation and annual collection of assessments enables the City to maintain improvements vital to public safety and the ongoing well-being of portions of the City’s housing stock.

ALTERNATIVES
None at this time.

BUDGET IMPACT
The City will have to incur the cost of subdivision improvement maintenance if the assessments are not approved and levied.

CONCLUSION
The Council should open the public hearings, receive comment, and then consider adoption of the resolutions that are the final step in the City’s annual process of levying assessments in various assessment districts established in previous years as a means of covering the costs of maintenance of various subdivision improvements.

ATTACHMENTS:

Public Hearing Notice
Resolution No. 2026-48
Cipriani Estates Benefit AD Report
Resolution No. 2026-49
Cipriani Estates P&OS AD Report
402
403
404
RESOLUTION NO. 2026-48

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

CONFIRMING DIAGRAM AND ASSESSMENTS AND LEVYING ANNUAL
ASSESSMENTS PURSUANT TO THE BENEFIT ASSESSMENT ACT OF 1982 FOR FISCAL YEAR 2026-2027

CIPRIANI ESTATES BENEFIT ASSESSMENT DISTRICT
WHEREAS, on or about May 22, 2026, Harris & Associates, the designated Engineer of Work, filed its annual report for the Cipriani Estates Benefit Assessment District, City of Gonzales, Monterey County, California; and
WHEREAS, on June 15, 2026, the City Council adopted Resolution No. 2026-36 stating its intent to confirm the diagram and to levy and collect annual assessments in the Cipriani Estates Benefit Assessment District, and directing the City Clerk to set a public hearing to be held on July 20, 2026, in the meeting place of the City Council located in the Council Chambers, 117 Fourth Street, Gonzales, California, to consider the Engineer’s annual report and to take action to confirm the diagram and levy the annual assessments identified therein.

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

1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding the Cipriani Estates Benefit Assessment District, the levy and collection of assessments, the Engineer’s Report prepared in connection therewith, and considered all oral and written statements, protests, and communications made or filed by interested persons regarding these matters.

2. Based on the Engineer’s Report, the City Council finds and determines that:
a. The land within the identified District will receive special benefit by the operation, maintenance, and servicing of improvements located in public places within the boundaries of the District; and
b. The District includes all of the lands so benefited; and c. The amount to be assessed upon the lands within the District in accordance with the fee for Fiscal Year 2026-2027 is apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the estimated benefits to be received by each parcel from the improvements and services.

3. The City Council hereby confirms the diagram and assessments as set forth in the annual report of the Engineer of Work and hereby levies the assessments set forth therein for Fiscal Year 2026-2027 within the benefit assessment district. The maximum assessments have been adjusted by the CPI for the previous year, established at 3.79%. The annual assessments for homes for Fiscal Year 2026-2027 will be increased from $678.00 to $703.74 per house, and will 405
increase from $1,052.04 to $1,092.00 per house for Lots 1-7. The difference in assessments for Lots 1-7 is due to an additional Storm Drain Maintenance charge.

4. The assessments confirmed hereby shall be collected at the same time and in the same manner as county taxes are collected and all laws providing for the collection and enforcement of county taxes shall apply to the collection and enforcement of assessments. Such funds are ordered to be used for the maintenance, operation and servicing of the improvements, and any and all other items of work necessary and incidental to the proper maintenance and operation thereof, as described in the Engineer’s Report.

5. The City Clerk is hereby authorized and directed to file a certified copy of the diagram and assessments with the County Auditor of Monterey County no later than August 3, 2026, who shall thereafter enter upon the county assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessments.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales held on the 20
th day of July, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:

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, California, at a regular meeting thereof held on the 20th day of July, 2026, by the above-stated vote of the members thereof, a majority being present.

Dated: July 20, 2026
_________________________________
Mary Villegas, Deputy City Clerk
406

CITY OF GONZALES
PRELIMINARY ENGINEER’S REPORT
FISCAL YEAR 2026-27

CIPRIANI ESTATES BENEFIT ASSESSMENT
FUND #631
JUNE 2026

PREPARED BY
Harris & Associates
60 W. Alisal Street, Suite 200
Salinas, CA 93901
www.weareharris.com
407
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
ENGINEER’S REPORT FOR
FISCAL YEAR 2026-27

CIPRIANI ESTATES BENEFIT ASSESSMENT DISTRICT
City of Gonzales
Monterey County
State of California

APPROVED BY THE CITY COUNCIL FOR THE CIPRIANI ESTATES BENEFIT ASSESSMENT DISTRICT OF THE CITY OF GONZALES, STATE OF CALIFORNIA ON THE _____ DAY OF _________, 2026.

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached was filed with me on the ________ day of ______________, 2026.

Mary Villegas, Deputy City Clerk
City of Gonzales, Monterey County, CA
_________________________________
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached was approved and confirmed by the City Council of the City of Gonzales, California on the ________day of ______________, 2026.

Mary Villegas, Deputy City Clerk
City of Gonzales, Monterey County, CA
__________________________
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached was filed with the County Auditor of the County of Monterey on the ________day of ______________, 2026.

Mary Villegas, Deputy City Clerk
City of Gonzales, Monterey County, CA
__________________________
408
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27

TABLE OF CONTENTS
Table of Contents
Certifications…………………………………………………………………………………………………………………………i Statement of Assessment Engineer…………………………………………………………………………………..….1 Plans and Specifications……………………………………………………………………………………………………….5 Estimate of Costs………………………………………………………………………………………………………………….7 District Diagram…………………………………………………………………………………………………………………..8 Method of Apportionment………………………………………………………………………………………………….9 Appendix A – 2025-26 Financial Summary ………………………………………………………………………….12 Appendix B – Assessment Roll ………………………………………………………………………………………..….13 Appendix C – District Diagram …………………………………………………………………………………………...16 Appendix D – Capital Replacement …………………………………………………………………………………….18 409
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
1 STATEMENT OF ASSESSMENT ENGINEER
Statement of Assessment Engineer
AGENCY: CITY OF GONZALES
PROJECT: CIIPRIANI ESTATES BENEFIT ASSESSMENT DISTRICT
TO: THE CITY COUNCIL

CITY OF GONZALES

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2026-27
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council for the Cipriani Estates Benefit Assessment District of the City of Gonzales to provide drainage services upon each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2026-27.

Pursuant to the Benefit Assessment Act of 1982, Chapter 6.4 of Part 1 of Division 2 of Title 5 of the Government Code (the “1982 Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of Gonzales’ Resolution adopted by the City Council, this Report has been ordered for:

CIPRIANI ESTATES BENEFIT ASSESSMENT DISTRICT
(Hereinafter referred to as the “District”),
I, Tamorah J. Bryant, authorized representative of the District, and the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:

PART I
Description of Improvements: This part provides a general description of improvements proposed to be maintained in the District. Plans and specifications for the improvements are on file with the City.

PART II
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2026-27.
410
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
2 PART III
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Monterey County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. The District Diagram is filed under separate cover with the City Clerk.

PART IV
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established by Resolution No. 2004-61 approved on the 21st day of June, 2004. For particulars as to the identification of parcels, reference is made to the District Diagram.

Appendices
Appendix A – Financial Summary
Appendix B – Assessment Roll
Appendix C – District Diagram
Appendix D – Capital Replacement
In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided.

DATED this day of , 2026
Tamorah Bryant, P.E., Assessment Engineer
R.C.E. No. C67205
Engineer of Work
411
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
3 PART I – PLANS AND SPECIFICATIONS
Plans and Specifications

INTRODUCTION
City Staff has contracted with Harris & Associates (“Harris”) to complete the annual administration process for all of City’s assessment districts. In addition to this required annual process, Harris has conducted an assessment district fund balance and capital asset replacement cash flow analysis to confirm and ensure that the City’s assessment districts annually assess property owners only for the essential funding to complete ongoing maintenance activities and finance timely capital replacement as assets reach the end of their useable lifecycles.

GENERAL DESCRIPTION OF THE DISTRICT
Cipriani Estates Benefit Assessment District is generally bounded on the northeast by State Route 101, on the southwest by Centennial (“C”) Street, on the southeast by a winery facility, and on the northwest by existing Tract No. 888, Volume 14, Cities and Towns, Page 23, Monterey County Records.

Maintenance and operation of the following described improvements of a local nature on public lands within said district including sweeping, streetlights and lighting costs, storm drain lines, including necessary cleaning, repairs, replacement, electric current, supervision, debris removal and any and all other items of work necessary and incidental for the proper maintenance and operation of the street thereof. All additions, improvements and enlargements thereto which may hereafter be made on and within the following described Cipriani Street, Amore Court, Murano Court and Venice Way and appurtenant improvement plans. All as said streets are shown on that certain map titled “Cipriani Estates PUD Tentative Map Moreland Corporation” on file with the City Clerk.

COMPLIANCE WITH THE CALIFORNIA CONSTITUTION
Assessments are levied annually pursuant to the Benefit Assessment Act of 1982, Chapter 6.4 of Part 1 of Division 2 of Title 5 of the Government Code (“1982 Act”). All assessments described in this Report and approved by the City Council are prepared in accordance with the 1982 Act and are in compliance with the provisions of the California Constitution Article XIIID (“Article XIIID”), which was enacted with the passage of Proposition 218 (“Prop 218”) in November 1996.

SUMMARY OF PROPOSED ASSESSMENT AND EXPENDITURES
Maintenance and operation of the following described improvements of a local nature on public lands benefiting said district including storm water retention pond silt removal and bank stabilization and percolation, including necessary cleaning, repairs, replacement, electric current, supervision, debris removal, pest abatement, engineering and inspection and any and all other items of work necessary and incidental for proper maintenance and operation thereof. All additions, improvements and enlargements thereto which may hereafter be made on the following described work within the following area and appurtenant improvement plans:
412
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
4 Storm Water Retention Pond: Improvements as shown on those certain plans titled “Cipriani Estates Retention Basin Plan and Cross Sections” and “Cipriani Estates Sump Access Plan and Profile”, and any subsequent revisions and as on the approved Cipriani Estates Tentative Map.

Emergency Vehicle Access Road and Looped Water Main and Easements: Improvements as shown on the approved map titled, “Cipriani Estates PUD Tentative Map Moreland Corporation”.

Maintenance and operation of the following described improvements of a local nature on public easements within said district including sweeping, storm drain lines including necessary cleaning, repairs, replacement, supervision, debris removal, fence and wooden wall and any and all other items of work necessary and incidental for the proper maintenance and operation of the facility thereof. All additions, improvements and enlargements thereto which may hereafter be made on and within the following described work and following described area and appurtenant improvement plans:

Storm Drain Easement Improvements and Appurtenances at the Rear of Lots 1 through 7 and Along the Easterly Side of Lot 7: Improvements as shown on the improvement plan titled “Fairview Estates Unit No. 2/Cipriani Estates Storm Drain Modifications” including a wooden wall.

Incidental costs including contingencies, and assessment district incidentals including engineering, printing, and notices to property owners, collection costs, legal fees, administration and supervision, are assessed to the District on the same basis as the improvements specified above.

Pursuant to the 1982 Act:
"Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or any part of any improvement.
"Service" or "servicing" means the furnishing of electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. 413
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
5 PART II – ESTIMATE OF COSTS
Estimate of Costs
All improvements within the District are maintained and serviced on a regular basis. Based upon the available revenues generated by the assessment, City staff determines the frequency and specific maintenance operations which can be provided in a given year.

Beginning in Fiscal Year 2021-22, the City combined the budget page to show only the total expenditures, revenues, etc. for the District, rather than showing the expenditures and revenues by individual phases of the development, as had been done in previous years.
414
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
6 415
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
7 416
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
8 PART III – DISTRICT DIAGRAM
District Diagram
The boundaries of the Cipriani Estates Benefit Assessment District are shown on the map in Appendix C. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Monterey County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. The District Diagram is also filed under separate cover with the City Clerk. 417
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
9 PART IV – METHOD OF APPORTIONMENT
Method of Apportionment
GENERAL PROVISIONS – SPECIAL BENEFIT
Pursuant to the 1982 Act and Article XIIID, all parcels that receive a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. Chapter 6.4, Division 2, Title 5, of the Government Code, the Benefit Assessment Act of 1982, permits the establishment of assessment district by Cities for the purpose of providing certain public improvements that include street maintenance.

Section 54711 of the Benefit Assessment Act of 1982 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This Section states:
(a) No benefit assessment shall be levied pursuant to this chapter unless it meets all of the following requirements:
(1) The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service. Except as provided in subdivision (d) or (e) of Section 54715, in the case of a benefit assessment for flood control services, the benefit must be determined on the basis of the proportionate storm water runoff from each parcel. In the case of an assessment for the maintenance of streets, roads, or highways, the benefit shall be in proportion to the estimated traffic volume to be generated by each parcel assessed, or by any other reasonable basis as determined by the legislative body.
(2) The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service.
(3) The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied.

The 1982 Act also permits the designation of zones of benefit within any individual assessment district.

Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIIID also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways.

The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. The costs for the operation, maintenance and servicing of the improvements maintained for each zone are apportioned in accordance with the methodology which was established by the City Council upon formation of the District.

The methodology for identifying and apportioning special benefit was established and approved as part of the original formation proceedings for the District.
418
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
10 GENERAL PROVISIONS – GENERAL BENEFIT
Although the improvements may include public streets and drainage facilities that connect to similar facilities outside the District’ boundaries, the construction, maintenance and operation of these improvements are only necessary for the development of properties within the District. As such, these improvements were not required nor necessarily desired by any properties or developments outside the District’ boundaries and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the ongoing maintenance, servicing and operation of the District’s improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District.

ASSESSMENT METHODOLOGY
All costs associated with the maintenance and operation of the Cipriani Estates Benefit Assessment District improvements including Engineer’s Report, printing and advertising of assessment notices and legal fees shall be spread to all parcels on a pro-rata development unit basis.

Chapter 6.4 of Division 2 of the California Government Code, the Benefit Assessment Act of 1982, permits the establishment of assessment district by agencies for the purpose of financing the operation, maintenance and servicing of drainage, flood control, street lighting, and street improvements, and installation and improvement of drainage and flood improvements.

Section 54711 of the Benefit Assessment Act of 1982 requires that assessments be levied according to benefit derived from the provided service. In addition, Article XIIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property.

Article XIIID provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Excepted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways, and that portion of public property that is not developed and used for business purposes similar to private commercial, industrial and institutional activities.

The improvements to be maintained and operated as a result of the formation of the Cipriani Estates Benefit Assessment District have been installed given that all of the residential units within the District have been built. All such improvements are being installed within or in areas in close proximity to the proposed developed residential lots and benefiting the proposed developed residential lots.

As a result of the foregoing, the developed residential lots will receive 100% of the special benefits of the operation and maintenance of drainage, flood control, street lighting and street improvements. These special benefits include enhanced neighborhood health and safety, and improved quality of life, generated when drainage, flood control and street improvements are in place, improved, operable, safe, clean and maintained. In short, maintenance and operation of the proposed improvements will provide beautification, protection of improved property, enhanced comfort and increase the desirability of the immediate surroundings of the residential units within the District. Due to the configuration and proximity of the proposed or existing improvements within the District in relation to the developed lots, and the nature of the benefits derived therefrom, lots in close proximity to the District will not enjoy special benefits described herein. Moreover, because of the location of the contemplated improvements either within, close to, or benefiting the District itself, there is no general benefit to properties outside the District or the community as a whole, or a general benefit that is so negligible, it cannot be calculated for purposes of assessment.
419
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
11 As such, all costs associated with the maintenance and operation of Cipriani Estates Assessment District improvements, including incidentals and appurtenances, shall be spread to all parcels within the District on a development unit basis.

Developed parcels are those parcels on which a final subdivision map has been filed, and which can obtain building permits as of the date of the final public hearing on assessment. Said parcels also abut or obtain primary access from a public street.

Costs associated with the maintenance of a storm drain and appurtenances along the rear of Lots 1 through 7 and the westerly side of lot 7, as described previously in this report, will be assessed solely on Lots 1 through 7. These lots receive storm drainage from the adjacent Fairview Estates Unit No. 2 subdivision, and the storm drain improvements as described, allow those lots to be developed. A separate budget line item is included in the budget solely for the benefit of those parcels.

In order to determine the appropriate assessment for each developed parcel, a budget for operation and maintenance costs associated with planned improvements in the entire Cipriani Estates Subdivision Project was prepared. The total cost of operation and maintenance of a given improvement must be collected on an annual basis. Since the developed parcels in the District are the only parcels that derive special benefit from such activities, they must bear the entire cost of operation and maintenance.

Factored development unit calculations for residential areas are as follows: Low Density Single Family Residential = 1.0 Equivalent Dwelling Unit (EDU).

Monterey County charges 0.25% of the levy amount for collection for administration of the District.

420
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
12 APPENDIX A – FINANCIAL SUMMARY
2025-26 Financial Summary
421
Engineer’s Report
Cipriani Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
13 APPENDIX B – ASSESSMENT ROLL
Assessment Roll
The proposed assessment and the amount of the assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor’s Office, is shown on the following pages. The description of each lot or parcel is part of the records of the Assessor of the County of Monterey and those records are, by reference, made part of this report. The assessments shown will be submitted to the County Auditor/Controller and included on the property tax bill for each parcel shown in the assessment roll for Fiscal Year 2026-27.
422
Engineer’s Report
Cipriani Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
14 423
Engineer’s Report
Cipriani Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
15 424
Engineer’s Report
Cipriani Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
16 APPENDIX C – DISTRICT DIAGRAM
District Diagram
The District Diagram is shown on the following page.
425
Engineer’s Report
Cipriani Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
17 426
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
18 APPENDIX D – CAPITAL REPLACEMENT
Capital Replacement
The following pages show a summary of the Capital Replacement costs for each District within the City, as well as the Capital Replacement detail of each identified item for this District.
427
Engineer’s Report
Cipriani Estates Benefit Assessment District
City of Gonzales
Fiscal Year 2026-27
19 428
RESOLUTION NO. 2026-49

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

CONFIRMING DIAGRAM AND ASSESSMENTSAND LEVYING ANNUAL
ASSESSMENTS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2026-2027

CIPRIANI ESTATES PARKS AND OPEN SPACES

MAINTENANCE ASSESSMENT DISTRICT
WHEREAS, on or about May 22, 2026, Harris & Associates, the designated Engineer of Work, filed its annual report for the Cipriani Estates Parks and Open Spaces Maintenance Assessment District, City of Gonzales, Monterey County, California; and WHEREAS, on June 15, 2026, the City Council adopted Resolution No. 2026-37 stating its intent to confirm the diagram and to levy and collect annual assessments in the Cipriani Estates Parks and Open Spaces Maintenance Assessment District, and directing the City Clerk to set a public hearing to be held on July 20, 2026, in the meeting place of the City Council located in the Council Chambers, 117 Fourth Street, Gonzales, California, to consider the Engineer’s annual report and to take action to confirm the diagram and levy the annual assessments identified therein.

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

1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding the Cipriani Estates Parks and Open Spaces Maintenance Assessment District, the levy and collection of assessments, the Engineer’s Report prepared in connection therewith, and considered all oral and written statements, protests, and communications made or filed by interested persons regarding these matters.

2. Based on the Engineer’s Report, the City Council finds and determines that:
a. The land within the identified District will receive special benefit by the operation, maintenance, and servicing of improvements located in public places within the boundaries of the District; and
b. The District include all of the lands so benefited; and c. The amount to be assessed upon the lands within the District in accordance with the fee for Fiscal Year 2026-2027 is apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the estimated benefits to be received by each parcel from the improvements and services.

3.79%. The annual assessments for Fiscal Year 2026-2027 will be increased from $650.00 to $674.68 per house.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales held on the 20th day of July, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:

Dated: July 20, 2026
_________________________________
Mary Villegas, Deputy City Clerk
430

CITY OF GONZALES
PRELIMINARY ENGINEER’S REPORT
FISCAL YEAR 2026-27

CIPRIANI ESTATES PARKS & OPEN SPACES
FUND #630
MAY 2026

PREPARED BY
Harris & Associates
60 W. Alisal Street, Suite 200
Salinas, CA 93901
www.weareharris.com
431
Engineer’s Report
Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
ENGINEER’S REPORT FOR
FISCAL YEAR 2026-27

CIPRIANI ESTATES PARKS AND OPEN SPACES
City of Gonzales
Monterey County
State of California

APPROVED BY THE CITY COUNCIL FOR THE CIPRIANI ESTATES PARKS AND OPEN SPACE DISTRICT OF THE CITY OF GONZALES, STATE OF CALIFORNIA ON THE _____ DAY OF _________, 2026.

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached was filed with me on the ________day of ______________, 2026.

Mary Villegas, Deputy City Clerk
City of Gonzales, Monterey County, CA
__________________________
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27

TABLE OF CONTENTS
Table of Contents
Certifications…………………………………………………………………………………………………………………………i Statement of Assessment Engineer…………………………………………………………………………………..….1 Plans and Specifications……………………………………………………………………………………………………….3 Estimate of Costs………………………………………………………………………………………………………………….6 District Diagram…………………………………………………………………………………………………………………...9 Method of Apportionment………………………………………………………………………………………………….10 Appendix A – 2025-26 Financial Summary ………………………………………………………………………….13 Appendix B – Assessment Roll ………………………………………………………………………………………..….14 Appendix C – District Diagram …………………………………………………………………………………………...17 Appendix D – Capital Replacement …………………………………………………………………………………….19 433
Engineer’s Report
Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
1 STATEMENT OF ENGINEER
Statement of Assessment Engineer
AGENCY: CITY OF GONZALES
PROJECT: CIPRIANI ESTATES PARKS AND OPEN SPACES
TO: THE CITY COUNCIL

CITY OF GONZALES

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2026-27
The preparation of this Annual Engineer’s Report (“Report”) is in conformance with the obligation of the City Council for the Cipriani Estates Parks and Open Space District of the City of Gonzales to provide landscaping and irrigation maintenance and operation services upon each lot or parcel of land in the district in proportion to the estimated benefit to be received by each such lot or parcel of land for Fiscal Year 2026-27.

Pursuant to the Landscape and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500) (“Act”), Article XIIID, Section 4(a) of the State of California Constitution, and in accordance with the City of Gonzales’ Resolution adopted by the City Council, this Report has been ordered for:

CIPRIANI ESTATES PARKS AND OPEN SPACES
(Hereinafter referred to as the “District”),
I, Tamorah J. Bryant, authorized representative of the District, and the duly appointed Assessment Engineer submit the following Report which consists of the following four (4) parts and Appendices:

PART II
Estimate of Cost: This part contains the cost estimate of the proposed maintenance including incidental costs and expenses for Fiscal Year 2026-27.
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Engineer’s Report
Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
2 PART III
District Diagram: This part incorporates a Diagram of the District showing the external boundaries of the District. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Monterey County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. The District Diagram is filed under separate cover with the City Clerk.

PART IV
Method of Apportionment of the Assessments: This part describes the method of apportionment of assessments, based upon parcel classification of land within the District in proportion to the estimated special benefits to be received. The costs and expenses of the District have been assessed upon the parcels of land within the boundaries of District pursuant to the initial methodology established by Resolution No. 2004-62 approved on the 21 st day of June, 2004. For particulars
as to the identification of parcels, reference is made to the District Diagram.

DATED this ___ day of ___, 2026
Tamorah J. Bryant, P.E., Assessment Engineer
R.C.E. No. C67205
Engineer of Work
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
3 PART 1 – PLANS AND SPECIFICATIONS
Plans and Specifications

GENERAL DESCRIPTION OF THE DISTRICT
Cipriani Estates Parks and Open Spaces Maintenance Assessment District is generally bounded on the southwest by Centennial (“C”) Street, on the northwest by existing Tract No. 888, Volume 14, Cities and Towns, Page 23, Monterey County Records, and on the northeast by State Route 101. Refer to Appendix B.

The District was formed in 2004 to provide a dedicated funding source for the maintenance and operation of any or all public landscaping and irrigation improvements, of a local nature, on landscaped strips of land adjacent to curbs of the following described streets, including monument signs, planter walls, grass berms, retention ponds, parks or tot lots, boundary walls and bank protection, appurtenant irrigation systems; ornamental plantings including lawns, shrubs, and trees; including necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal, and any and all other items of work necessary and incidental for the proper maintenance and operation thereof and all additions, improvements and enlargements thereto which may hereafter be made on the following described work:

Cipriani Street, located in a strip of land of varying width from face of curb lines including planter walls at its intersection with Centennial (“C”) Street.

Maintenance and operation of any or all public landscaping and irrigation improvements, of a local nature, on landscaped strips of land of the following described areas, including retention pond landscaping and bank protection, appurtenant irrigation systems; ornamental plantings including lawns, shrubs, and trees; including necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal, and any and all other items of work necessary and incidental for the proper maintenance and operation thereof and all additions, improvements and enlargements thereto which may hereafter be made on the following described work:

Storm Water Retention Pond and appurtenant access and irrigation as said parcel as shown on the map filed in the Office of the City Clerk of the City of Gonzales titled, “Cipriani Estates PUD Tentative Map Moreland Corporation”. 436
Engineer’s Report
Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
4 Maintenance and operation of planter walls and associated improvements, of a local nature, including necessary repairs, replacements, spraying, care, supervision, debris removal, and any and all other items of work necessary and incidental for the proper maintenance and operation thereof and all additions, improvements and enlargements thereto which may hereafter be made on the following described work:

Boundary Walls, including landscaping appurtenant thereto along the boundary of the project and tot lot/park, as shown on that certain map titled, “Cipriani Estates PUD Tentative Map Moreland Corporation”.

Maintenance and operation of any or all public landscaping and irrigation improvements, of a local nature, on landscaped land adjacent including jogging paths, planter walls, grass berms, appurtenant irrigation systems; ornamental plantings including lawns, shrubs, and trees; park liability insurance coverage, including necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal, and any and all other items of work necessary and incidental for the proper maintenance and operation thereof and all additions, improvements and enlargements thereto which may hereafter be made on the following described work:

Tot Lot/Park Site, as shown on that certain map titled, “Cipriani Estates PUD Tentative Map Moreland Corporation”, a.k.a. “Lots 67 through 69”, until said lots are developed for residential uses.

Incidental costs including contingencies, and Assessment District incidentals including engineering, printing, and notices to property owners, collection costs, legal fees, administration and supervision, are assessed to the District on the same basis as the improvements specified above.

COMPLIANCE WITH THE CALIFORNIA CONSTITUTION
Assessments are levied annually pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (“1972 Act”). All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and are in compliance with the provisions of the California Constitution Article XIIID (“Article XIIID”), which was enacted with the passage of Proposition 218 (“Prop 218”) in November 1996.

SUMMARY OF PROPOSED ASSESSMENT AND EXPENDITURES
A summary of the assessments to be levied is shown in the table below. 437
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
5 LEVEL OF MAINTENANCE SERVICES PROVIDED
All costs associated with the maintenance and operation of the District improvements including the Engineer’s Report, printing and advertising of assessment notices, County collection fees and legal fees all of which shall be spread to all parcels on a pro-rata development unit basis.

One hundred percent (100%) of all costs associated with the maintenance and operation of the District improvements including incidentals and appurtenances are of special benefit to parcels within the District and shall be spread to all parcels within the District on a development unit basis.

Pursuant to the 1972 Act:
"Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or any part of any improvement.
"Service" or "servicing" means the furnishing of electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. 438
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
6 PART II – ESTIMATE OF COSTS
Estimate of Costs
All improvements within the District are maintained and serviced on a regular basis. Based upon the available revenues generated by the assessment, City staff determines the frequency and specific maintenance operations which can be provided in a given year.

The proposed budget is shown on the following page. This includes an estimate of the costs of utilities, operations, services, administration and maintenance associated with the improvements within the District, including all labor, personnel, equipment, materials and administrative expenses. The budget summary also shows the estimated fund balance and the projected fund reserves that will be available and may be required based upon the estimated expenditures and assessment revenue.
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City of Gonzales
Fiscal Year 2026-27
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Fiscal Year 2026-27
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City of Gonzales
Fiscal Year 2026-27
9 PART III – DISTRICT DIAGRAM
District Diagram
The boundaries of the Cipriani Estates Parks and Open Space District are shown on the map in Appendix C. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Monterey County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. The District Diagram is also filed under separate cover with the City Clerk. 442
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
10 PART IV – METHOD OF APPORTIONMENT
Method of Apportionment

GENERAL PROVISIONS
The 1972 Act permits the establishment of assessment district by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The formula used for calculating assessments in the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. In addition, pursuant to Prop 218:
“No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable and an agency shall separate the general benefits from the special benefits conferred on a parcel.” The methodology for identifying and apportioning special benefit was established and approved as part of the original formation proceedings for the District.

BENEFIT ANALYSIS
Each of the improvements have been carefully reviewed by the City and the corresponding assessments have been proportionately spread to each parcel based on improvements as determined at the time the District was established.

General Benefits
The improvements within this District are a direct result of property development within the District and would otherwise not be required or necessary. Developers typically install landscape improvements to enhance the marketability and value of properties within the development and/or as conditions of development. In either case, the improvements are clearly installed for the benefit of the properties developed and not for the benefit of surrounding properties.

Although many landscape improvements (by virtue of their location), may be visible to surrounding properties or to the public at large, any benefit to surrounding properties is incidental and cannot be considered a direct and special benefit to those properties. Therefore, it has been determined that the improvements within this District and the ongoing operation and maintenance of those improvements are clearly a direct and special benefit to properties within the District.

Unless otherwise noted, these improvements provide no measurable general benefit to properties outside the District or to the public at large.
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
11 Special Benefits
The method of apportionment approved at the time the District was formed is based on the premise that each of the assessed parcels within the District receives benefit from the improvements maintained and financed by annual assessments. Specifically, the assessments are for the maintenance of local landscape improvements installed as part of the original improvement. The desirability and safety of properties within the District are enhanced by the presence of well-maintained landscaping. The special benefits associated with the local landscaping improvements are specifically:
• Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties within the District providing a positive representation of the area.
• Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
• Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties.

All of the preceding special benefits contribute to a specific enhancement and desirability for the parcels in the District.

Non-Assessable Parcels
Article XIIID provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment.

Excepted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways, and that portion of public property that is not developed and used for business purposes similar to private commercial, industrial and institutional activities.

ASSESSMENT METHODOLOGY
The District is assessed, on the basis of total development units generated, for the maintenance and operation of the District improvements, including incidentals and appurtenances, and shall include all the costs of maintaining and/or operating the improvements described herein.

All costs associated with the maintenance and operation of the District improvements including Engineer’s Report, printing and advertising of assessment notices and legal fees shall be spread to all parcels on a pro-rata development unit basis.

Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of Assessment District by agencies for the purpose of providing certain public improvements which include the operation, maintenance and servicing of landscaping, street lighting, and park and recreational facilities. Section 22573 of the Lighting and Landscaping Act of 1972 requires that maintenance assessments be levied according to benefit rather than according to assessed value. In addition, Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. 444
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
12 The improvements to be maintained and operated as a result of the formation of the District have been installed given that all of the residential units within the District have been built. All of the involved improvements have been installed within or in areas in close proximity to the developed residential lots.

The developed residential lots in the Cipriani Estates subdivision will receive all of the special benefits of the operation and maintenance of parks, public landscaping and streetlights. These special benefits include enhanced neighborhood identity and quality of life, generated when park landscaping and lighting are in place, improved, operable, safe, clean and maintained. In short, maintenance and operation of the proposed improvements will provide beautification, shade, and increase the desirability of the immediate surroundings of the residential units within the District.

Because of the location of the contemplated improvements either within or close to the District itself, there is no general benefit to properties outside the District or the community as a whole, or a general benefit that is so negligible; it cannot be calculated for purposes of assessment.

As such, all costs associated with the maintenance and operation of District improvements, including incidentals and appurtenances, shall be spread to all parcels within the District on a development unit basis. Developed parcels are those parcels on which a final subdivision map has been filed, as of the date of the final public hearing on assessment. Said parcels also abut or obtain primary access from a public street.

In order to determine the appropriate assessment for each developed parcel, a budget for operation and maintenance costs associated with planned improvements in the entire Cipriani Estates was prepared. In some instances, the total cost of operation and maintenance of a given improvement must be collected on an annual basis. Since the developed parcels in the District are the only parcels that derive special benefit from such activities, they must bear the entire cost of operation and maintenance.

Factored development unit calculations for residential areas are as follows: Low Density Single Family Residential = 1.0 Equivalent Dwelling Unit (EDU).

Monterey County charges 0.25% of the levy amount for collection for administration of the District.

Assessments may be adjusted annually based on the April Consumer Price Index of the San Francisco-Oakland-Hayward Area All Urban Consumers Index (CPI-U). Adjustments are based on the change of the Consumer Price Index prior year/month as compared to the year/month assessments are determined (benchmark month for this district is April). The following table shows the prior year actual and maximum assessment rate per EDU, the annual CPI-U adjustment for the current fiscal year, the current year calculated maximum assessment, the assessment unit of measure, and the current year applied assessment rate.
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
13 APPENDIX A – FINANCIAL SUMMARY
2025-26 Financial Summary
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
14 APPENDIX B – ASSESSMENT ROLL
Assessment Roll
The proposed assessment and the amount of the assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor’s Office, is shown on the following pages. The description of each lot or parcel is part of the records of the Assessor of the County of Monterey and those records are, by reference, made part of this report. The assessments shown will be submitted to the County Auditor/Controller and included on the property tax bill for each parcel shown in the assessment roll for Fiscal Year 2026-27.
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
15 448
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City of Gonzales
Fiscal Year 2026-27
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Fiscal Year 2026-27
17 APPENDIX C – DISTRICT DIAGRAM
District Diagram
The District Diagram is shown on the following page.
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
19 APPENDIX D – CAPITAL REPLACEMENT
Capital Replacement
The following pages show a summary of the Capital Replacement costs for each District within the City, as well as the Capital Replacement detail of each identified item for this District. 452
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Cipriani Estates Parks and Open Spaces
City of Gonzales
Fiscal Year 2026-27
20453

CITY OF GONZALES
AGENDA
ITEM

7.6 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: July 20, 2026
FROM: Mike Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Request for Direction Regarding City Council Term Limits Staff Report
Public Comment
Council Discussion
Council Action

CITY ATTORNEY

RECOMMENDATION
It is recommended that the City Council consider and discuss policy considerations and actions necessary for imposition of term limits for council members and/or the mayor and thereafter provide staff with direction.

BACKGROUND
On several occasions in 2026, members of the Council have raised the issue of term limits on elected officials and requested that Staff bring back a report on this topic. Currently, council members serve standard four-year terms, with the mayor serving a two-year term. There are no term restrictions in Gonzales, meaning that citizens are allowed to run for election and reelection indefinitely without any restrictions on the number of consecutive or cumulative terms they may serve. A quick survey in Monterey County indicates that term limits are not in force in Salinas, Marina, Carmel, or any of the South County cities, but are in place in Pacific Grove and Monterey.

REVIEWAND ANALYSIS
Pursuant to Government Code Section 36502, the council of a general law city such as Gonzales is authorized to ask voters to decide whether to limit the number of terms that may be served by a member of the council and/or an elected mayor. If a term limit measure is approved by a majority of voters (50% + 1), by law the measure would only apply prospectively- application of the restriction could not alter the existing term of any elected official and would not apply to terms that were elected prior to the measure’s passage. So, for example, if a council member was in year two of a four-year term at the time an eight-year term limit became effective, the eight-year limitation would not be imposed on the member until the end of the current four-year term. 454
A local term limit ballot measure must be submitted to voters at a regularly scheduled election, meaning a statewide primary election, a statewide general election, or a general municipal election, all of which by statute can only be held on specific dates. This is important as historically, the City has tried to minimize the cost of stand-alone elections by consolidating with state elections. Currently, there is one regularly scheduled statewide election left in 2026, and no regular state election scheduled for 2027.

There are a variety of policy considerations regarding term limits. Proponents of limits assert that term restrictions provide incentive to new candidates to run for office, limit potential abuses of power by incumbents who stay in office too long, promote new ideas and fresh approaches, and allow officials to focus on policy making, including adoption of unpopular ideas, without fear of reprisal (term-restricted elected officials are not always running for election and thus have more freedom to make independent decisions). Conversely, term limit opponents argue that limits result in a loss of experience by pushing effective policy-makers (officials with local knowledge, contacts, and institutional/historical memory) out of office, upset continuity in implementing policies and projects, and in general, subvert the democratic process by prohibiting citizens from selecting a candidate they may see as the most qualified for the position.

Term limits may also have an adverse impact on the elections process in cities with voting districts. The establishment of voting districts can have the effect of creating a limited pool of interested candidates within a given district. Once these individuals term-out, the end result may be the creation of council vacancies, necessitating the cumbersome and often controversial appointment process.

It is also important to note that once term limits are adopted, they can only be changed by voter approval. I noticed in preparing this report that many recent ballot measures concerning term limits have addressed proposed modifications to previously established restrictions, usually to relax initial limitations that have had an adverse impact on the available number of candidates for office. This should give the Council pause to ensure that they have fully vetted the potential effects of the term limits to be included in any council generated measure.

There are many variations in the format and structure of a term limits measure. The basic elements of a measure include but are not limited to the following:

1. Length of Term Limits. Most of the samples I found established either a two-term or three-term limit, but any variation on this restriction is legally permissible.

2. Lifetime vs. Consecutive Term Limits. A lifetime limit would prohibit a person from ever serving on the council again once the limit had been reached. A consecutive term limit establishes a fixed term followed by a “cooling off” period during which the involved person cannot serve or be appointed to the council. Two to four years is typical.

After this period is over, the individual may run again and serve additional terms, subject to subsequent term limits and cooling off periods.

3. Separate or Combined Term Limits for Mayor and Council. State law allows the City to adopt a single combined limit covering service as either the mayor or a council member or separate limits for each office. So, for example, a two-term lifetime limit for combined service as mayor or council member, a two-term lifetime limit for mayor and a three-term lifetime limit for council, or a two-term consecutive limit for both offices combined.

4. Guidance on How Partial Terms are Counted. If an individual fills a vacancy as mayor or council member through appointment or special election the official may serve a term shorter than the standard four or two-year term. How will such partial terms be counted towards the established term limits? There are a variety of approaches to dealing with this situation, including but not limited to not counting partial terms towards the limit, counting any portion of a term as a full term, or counting partial terms only when the length of the partial term is above an established threshold (Such as two years).

If the Council desires to immediately proceed with a term limit ballot measure, the Elections Department’s Calendar indicates that in order to qualify for the November 2026 regular general election, the Council would be required to adopt and transmit the ballot measure and associated documents to the County by August 7. The Council would also 455
need to modify its previous call for a consolidated election. Unless the Council called a special meeting, this would give the Council one meeting at which to review and adopt the measure and other required documents. The process would be similar to the recent parcel tax measure; staff would prepare and bring a resolution to the Council that would set forth the proposed term limitations, authorize the city attorney to prepare an impartial analysis, and address details regarding the submission of ballot arguments and rebuttal arguments in accordance with state law.

Staff is now requesting direction regarding the following:

1. Does the Council wish to propose a ballot measure to the voters at the November 2026 election to establish term limits for council members and the mayor?

2. If yes, what term limits for council members does the Council want to propose?

3. If yes, does the Council want to establish lifetime vs. consecutive term limits, and separate or combined terms for mayor and council?
Explain Recommendation and How it Supports the Vision.

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

Explain: Term limits may be a means of ensuring that the City Council has new ideas and fresh approaches to support the City’s vision.

City services will be delivered in a cost-ef ective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. __ Yes __No X NA
Strong fiscal policies allow us to provide appropriate infrastructure for:

Public Safety Yes __ No X N/A
Housing Yes __ No X N/A
Recreation Yes __ No X N/A
Environment Yes __ No X N/A
Education Yes __ No X N/A
Explain:NA.

ALTERNATIVES
• Provide staff with direction for the preparation of a ballot measure to implement term limits on the council and mayor in the City of Gonzales.
• Reject the proposal to prepare a ballot measure to impose term limits on the council and mayor in the City of Gonzales.

BUDGET IMPACT
456
There will be no direct fiscal impacts associated with receipt of this report and providing direction. There will be elections-related costs if the City decides to place a measure on the November 3, 2026 ballot.

CEQA
The City finds that the involved action is not a project under the California Environmental Quality Act pursuant to State Guidelines CEQA Guidelines Sections 15060, 15378.

CONCLUSION
It is recommended that the City Council consider and discuss and thereafter provide staff with direction on the potential adoption and imposition of term limits for the City Council and Mayor. 457

CITY OF GONZALES
AGENDA
ITEM

7.7 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: July 20, 2026
FROM: Taven M. KInison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Surplus Land Act (SLA) Update
Staff Report
Public Comment
Council Discussion
Council Action

COMMUNITY DEVELOPMENT DEPARTMENT

RECOMMENDATION
It is recommended that the City Council receive an update on the status of the Surplus Land Act process, and authorize the City Manager and Community Development Director to proceed with the next step of getting the property appraised and ready to negotiate with interested properties.

BACKGROUND
On May 5, 2026, staff received confirmation from the Housing and Community Development Department (HCD) of the State of California that we had successfully provided public notice of the City’s intent to sell surplus property.

Such notice was distributed by email to hundreds of parties registered with the State of California to receive such notices. This began a 60-day window to respond to the City of Gonzales and express interest in acquiring any of our surplus properties. That window closed on Monday July 6, 2026. Properties of Interest included:

Site
Address/
Intersection
Assessor
Parcel
Number
General
Plan
Designation
Zoning
Designation
Minimum
Density
Maximum
Density
Parcel Size
Existing
Use
Canyon
Creek Park,
Phase 2
parcel
020-343-
003-000
Parks and
Open Space
Open Space 0 0 2.91 Agriculture
458
469 Venice
Way
020-351-
067-000
Low
Density
Residential
R-1-PUD 4 7 0.124
Temporary
Park
473 Venice
Way
020-351-
068-000
Low
Density
Residential
R-1-PUD 4 7 0.124
Temporary
Park
477 Venice
Way
020-351-
069-000
Low
Density
Residential
R-1-PUD 4 7 0.124
Temporary
Park
498 South
Alta Street
020-041-
016-000
Medium
Density
Residential
R-2 8 24 0.99
Vacant
deteriorated
house
On Friday, July 3, 2026 the City of Gonzales received an email of from the Aurelian Construction Group out of San Jose California, expressing interest in our one-acre Marchetti House property at 498 S. Alta Street, and the three parcels of Venice Way Park in the Cipriani Subdivision. No interest was expressed in the 2.91 open-space parcel being farmed in the northwestern corner of the City adjacent to Canyon Creek Park and subdivision.

Each of the four letters from theAurelian Construction Group offers:
“As part of our preliminary vision for the redevelopment of this property, Aurelian Construction Group intends to incorporate approximately twenty-five percent (25%) affordable housing within the proposed development, subject to applicable laws, City requirements, project feasibility, environmental review, and successful completion of due diligence.

Additionally, our conceptual vision includes thoughtfully designed housing intended to serve the senior community by providing safe, accessible, and age-friendly residential opportunities that promote independence, quality of life, and long-term community integration. We believe this approach supports the objectives of the California Surplus LandAct while helping address Gonzales' need for both affordable and senior-oriented housing.” Please see the four attached Letters of Interest fromAurelian Construction Group. (Attachments 1-4) According to the 2021 “Updated Surplus Land Act Guidelines,” (Guidelines) a 90-day, good faith negotiation period shall now commence for these two city properties (in four parcels). In our case, the first day of the 90-day period began, Tuesday, July 7, 2026. Following these 90 days, the City may dispose of (sell) the surplus land.

According to Section 202 in the Guidelines: “Disposal of Surplus Land forAffordable Housing:” (B) Upon Receipt of Notice of Interest. If a local agency disposing of surplus land receives a timely notice of interest from a proper entity, then a good faith negotiation period of at least 90 days begins on the first day after the end of the 60-day period in Government Code section 54222(e). If the price or terms cannot be agreed upon after the full 90-day good faith negotiation period, then the local agency may dispose of the surplus land without further regard to the SLA but must still comply with Government Code section 54233 or 54233.5, as applicable.

REVIEWAND ANALYSIS
At this juncture, we are to engage with the Aurelian Construction Group and work to find a mutually agreeable affordable housing development plan and sales price. Notwithstanding the need for City development review and permits, finding a sales price within this good faith negotiation period appears to be imperative.

Staff forecasts the need to bring in an experienced real estate broker or realtor to appraise and show the properties and to coordinate with this potential buyer. In the case of the property that no interest was expressed, staff will follow 459
through with the State for guidance to sell the property outright for housing or other uses. Should the property not be desired to be purchased or leased by a local farming interest, a re-evaluation of opportunities to the public benefit will be necessary.

Community Development Department staff will be responsible for reporting to and through the State of California as required of the Surplus LandAct.

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

Explain: Finding ways for the City to divest itself of unused property, returning revenue to the city, and furthering affordable housing, all contribute to the continued support for the citizens and institutions of Gonzales.

Explain how the Recommendation Directly Implements the Mission 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: The sale of surplus land is about finding necessary financial resources to continue to provide excellent services and to maintain and enhance the quality of life.

City services will be delivered in a cost-ef ective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes No N/A
Explain: See Vision explanation above.

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

ALTERNATIVES
State law is clear in this matter that we are required to enter good faith negations with the parties showing interest for a period not less than 90-days, and are to defer to the proposal that demonstrates a potential result of the most affordable housing. Alternatively, the Council can decide not to sell the property.

BUDGET IMPACT
Sale of the subject properties will lead to revenue enhancement reflecting the sales price of the subject properties, less City expenses incurred for hiring professional real estate representatives and the title company costs for transfer of ownership.

CONCLUSION
460
Staff recommends that the City Council receive an update on the status of the Surplus Land Act process, and authorize the City Manager and Community Development Director to proceed with the next step of getting the property appraised and ready to negotiate with interested properties.

ATTACHMENTS:

LOI 469 Venice Way
LOI 473 Venice Way
LOI 477 Venice Way
LOI 498 South Alta Street
461

LETTER OF INTENT
Subject: Acquisition of 469 Venice Way (Venice Way Park in Cipriani Subdivision) Pursuant to the California
Surplus Land Act
Acquisition of City-Owned Surplus Property
Property:
469 Venice Way (Venice Way Park in Cipriani Subdivision) Gonzales, California
Submitted To:

City of Gonzales
City Manager's Office
147 Fourth Street
Gonzales, CA 93926
Submitted By:

Aurelian Construction Group
Authorized Representative
Jesus Gomez
Submission Date:

July 3, 2026
462
July 3, 2026
Taven M. Kinison Brown
Community Development Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
Subject: Letter of Interest – Acquisition of 469 Venice Way (Venice Way Park in Cipriani Subdivision) Pursuant to the California Surplus Land Act Dear Mr. Kinison Brown,
On behalf of Aurelian Construction Group, I am pleased to submit this Letter of Intent regarding the potential acquisition and redevelopment of the City-owned property located at 469 Venice Way, Gonzales, California, pursuant to the California Surplus Land Act.

Aurelian Construction Group is a California-based construction and development company dedicated to creating thoughtfully planned, high-quality residential communities that contribute to the long-term growth and vitality of the cities we serve. We value collaboration with local agencies and strive to deliver projects that balance responsible investment, quality design, housing accessibility, and lasting community benefit.

As part of our preliminary vision for the redevelopment of this property, Aurelian Construction Group intends to incorporate approximately twenty-five percent (25%) affordable housing within the proposed development, subject to applicable laws, City requirements, project feasibility, environmental review, and successful completion of due diligence.

Our team is committed to working collaboratively with the City of Gonzales to develop a project that complements the surrounding neighborhood, respects the historical significance of the property where appropriate, and advances the City's long-term housing and community development goals.

We respectfully request that the City consider this letter as our formal expression of interest and include Aurelian Construction Group in any applicable review, evaluation, negotiation, or disposition process associated with the property. We would also appreciate receiving any additional information regarding the property and the applicable disposition process, including 463
the Notice of Availability, submission requirements, and any future meetings or negotiations related to this opportunity.

Thank you for your time and consideration. We appreciate the opportunity to express our interest in this unique property and look forward to working with the City of Gonzales throughout the Surplus Land Act process. Should you require any additional information, please do not hesitate to contact me.

Best Regards,
Jesus Gomez
Director of Development
[email protected]
464

LETTER OF INTENT
Subject: Acquisition of 473 Venice Way (Venice Way Park in Cipriani Subdivision) Pursuant to the California
Surplus Land Act
Acquisition of City-Owned Surplus Property
Property:
473 Venice Way (Venice Way Park in Cipriani Subdivision) Gonzales, California
Submitted To:

City of Gonzales
City Manager's Office
147 Fourth Street
Gonzales, CA 93926
Submitted By:

Aurelian Construction Group
Authorized Representative
Jesus Gomez
Submission Date:

July 3, 2026
465
July 3, 2026
Taven M. Kinison Brown
Community Development Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
Subject: Letter of Interest – Acquisition of 473 Venice Way (Venice Way Park in Cipriani Subdivision) Pursuant to the California Surplus Land Act Dear Mr. Kinison Brown,
On behalf of Aurelian Construction Group, I am pleased to submit this Letter of Intent regarding the potential acquisition and redevelopment of the City-owned property located at 473 Venice Way, Gonzales, California, pursuant to the California Surplus Land Act.

We respectfully request that the City consider this letter as our formal expression of interest and include Aurelian Construction Group in any applicable review, evaluation, negotiation, or disposition process associated with the property. We would also appreciate receiving any additional information regarding the property and the applicable disposition process, including 466
the Notice of Availability, submission requirements, and any future meetings or negotiations related to this opportunity.

Best Regards,
Jesus Gomez
Director of Development
[email protected]
467

LETTER OF INTENT
Subject: Acquisition of 477 Venice Way (Venice Way Park in Cipriani Subdivision) Pursuant to the California
Surplus Land Act
Acquisition of City-Owned Surplus Property
Property:
477 Venice Way (Venice Way Park in Cipriani Subdivision) Gonzales, California
Submitted To:

City of Gonzales
City Manager's Office
147 Fourth Street
Gonzales, CA 93926
Submitted By:

Aurelian Construction Group
Authorized Representative
Jesus Gomez
Submission Date:

July 3, 2026
468
July 3, 2026
Taven M. Kinison Brown
Community Development Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
Subject: Letter of Interest – Acquisition of 477 Venice Way (Venice Way Park in Cipriani Subdivision) Pursuant to the California Surplus Land Act Dear Mr. Kinison Brown,
On behalf of Aurelian Construction Group, I am pleased to submit this Letter of Intent regarding the potential acquisition and redevelopment of the City-owned property located at 477 Venice Way, Gonzales, California, pursuant to the California Surplus Land Act.

We respectfully request that the City consider this letter as our formal expression of interest and include Aurelian Construction Group in any applicable review, evaluation, negotiation, or disposition process associated with the property. We would also appreciate receiving any additional information regarding the property and the applicable disposition process, including 469
the Notice of Availability, submission requirements, and any future meetings or negotiations related to this opportunity.

Best Regards,
Jesus Gomez
Director of Development
[email protected]
470

LETTER OF INTENT
Subject: Acquisition of 498 South Alta Street (Marchetti House) Pursuant to the California Surplus Land Act
Acquisition of City-Owned Surplus Property
Property:
498 South Alta Street (Marchetti House)
Gonzales, California
Submitted To:

City of Gonzales
City Manager's Office
147 Fourth Street
Gonzales, CA 93926
Submitted By:

Aurelian Construction Group
Authorized Representative
Jesus Gomez
Submission Date:

July 3, 2026
471
July 3, 2026
Taven M. Kinison Brown
Community Development Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
Subject: Letter of Interest – Acquisition of 498 South Alta Street (Marchetti House) Pursuant to the California Surplus Land Act
Dear Mr. Kinison Brown,
On behalf of Aurelian Construction Group, I am pleased to submit this Letter of Intent regarding the potential acquisition and redevelopment of the City-owned property located at 498 South Alta Street, Gonzales, California, pursuant to the California Surplus Land Act.

We respectfully request that the City consider this letter as our formal expression of interest and include Aurelian Construction Group in any applicable review, evaluation, negotiation, or disposition process associated with the property. We would also appreciate receiving any 472
additional information regarding the property and the applicable disposition process, including the Notice of Availability, submission requirements, and any future meetings or negotiations related to this opportunity.

Best Regards,
Jesus Gomez
Director of Development
[email protected]
473

Gonzales City CouncilJuly 20, 2026

Gonzales City Council
July 20, 2026