Gonzales City Council
August 17, 2026

AMENDED AGENDA

JOINT MEETING OF THE GONZALES CITY COUNCIL,

GONZALES SUCCESSOR AGENCY, GONZALES SUCCESSOR

HOUSING AGENCY, GONZALES ELECTRIC AUTHORITY BOARD,

AND GONZALES MUNICIPAL ELECTRIC UTILITY BOARD

COUNCIL CHAMBERS
117 FOURTH STREET, GONZALES, CA 93926
MONDAY, AUGUST 17, 2026
6:00 PM

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. BUSINESS FROM THE PUBLIC

5. CONSENT AGENDA

5.1 Approve the Joint City Council/Successor Agency Regular Meeting Minutes of July 20, 2026
City Council/Successor Agency/Successor Housing Agency/Electric Authority Board/Municipal Electric Utility Board
Mayor Pro Tem/Vice Chair/Vice President Liz Silva, Council/Agency/Board Member Scott Funk, Council/Agency/Board Member Lorraine Worthy, Council/Agency/Board Member Maria Orozco, Mayor/Chair/President 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]
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.

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.

July 20, 2026 CC/SA Minutes
1 1

5.2 Approve the Joint City Council/Successor Agency Regular Meeting Minutes of August 3, 2026

5.3 Approve Accounts Payable Warrants #54214-54272

5.4 City Manager Report

5.5 Community Development Department Activity Report

5.6 Community Engagement & Recreation Activity Report

5.7 Police Department Activity Report

5.8 Public Works/City Engineer Department Activity Report

5.9 Resolution No. 2026-50, A Resolution of the City Council of the City of Gonzales Approving a Property Tax Transfer for the Proposed Vista Lucia Reorganization Involving Annexation of 771 Acres to the City of Gonzales and Detachment from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District

5.10 Resolution 2026-51, A Resolution of the City Council of the City of Gonzales Certifying Compliance with State Law with Respect to the Levying of General and Special Taxes, Assessments, and Property Related Fees and Charges

5.11 Resolution No. 2026-52, A Resolution of the City Council of the City of Gonzales Establishing the Appropriations Subject to Limit for the City of Gonzales for the 2026- 2027 Fiscal Year

5.12 Joint Resolution No. 2026-55, A Resolution of the City Council of the City of Gonzales/City Council as Board to the Successor Agency to the Gonzales Redevelopment Agency/Board of the Successor Housing Agency/Board of the Gonzales Electric Authority/Board of the Gonzales Municipal Electric Utility Approving a First Amendment to an Employment Agreement for City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director Services with Carmen Gil
August 3, 2026 CC/SA Minutes
Warrants #54214-54272
City Manager Report July 2026
Activity Report Pictures
Activity Report Pictures
Resolution No. 2026-50
BOS Resolution - Vista Lucia
Resolution No. 2026-51
Exhibit A - Levying Special Taxes & Assessment for FY 26-27 Assessments for FY 2026-2027
Resolution No. 2026-52
Exhibit A - GANN Appropriations
Exhibit B - Department of Finance Documentaion
Joint Resolution No. 2026-55 with First Amendment
2 2

6.1 Resolution No. 2026-53, A Resolution of the City Council of the City of Gonzales Adopting an Operating Budget for the City for the Fiscal Year July 1, 2026, through June 30, 2027, Providing for the Appropriations and Expenditures of All Sums Set Forth Therein; and Resolution SA-2026-03, A Resolution of the City Council of the City of Gonzales Acting as Successor Agency for the Gonzales Redevelopment Agency Approving and Adopting a Successor Agency Budget for the Period Between July 1, 2026, and June 30, 2027
Staff Report
Public Comment
Council Discussion
Council Action

7. BUSINESS FROM CITY COUNCIL

8. BUSINESS FROM CITY MANAGER

9. CLOSED SESSION

9.1 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: Duran v. City of Gonzales.

10. ADJOURNMENT
Resolution No. 2026-53
Resolution No. SA-2026-03
FY 2026-2027 Recommended Budget

7.1 Board/Committee Reports
League of California Cities Monterey Bay Division
Association of Monterey Bay Area Governments
Monterey Salinas Transit

7.2 Oral Communications
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 Gonzales City Council/Gonzales Successor Agency/Gonzales Successor Housing Agency, Gonzales Electric Authority Board, and Gonzales Municipal Electric Utility Board Meeting Amended Agenda was posted at City Hall, Council Chambers, and on the City’s website by August 14, 2026 at 12:00pm. 3 6. REGULAR AGENDA
Mary Villegas 8/14/26
Mary Villegas Date
3 CITY OF GONZALES
AGENDA
ITEM

5.1 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Approve the Joint City Council/Successor Agency Regular Meeting Minutes of July 20, 2026

CITY MANAGER
ATTACHMENTS:

July 20, 2026 CC/SA Minutes
4

MINUTES

JOINT MEETING OF THE

GONZALES REGULAR MEETING

AND GONZALES JOINT CITY

COUNCIL/SUCCESSOR AGENCY
MONDAY, JULY 20, 2026
6:00 PM

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

2. PLEDGE OF ALLEGIANCE
The flag salute was recited by all present.

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
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.
5

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 Introduction and Appointment of New Gonzales Youth Council Commissioners Recreation Coordinator and GYC Advisor Albor introduced the new Youth Commissioners Orlando Rodriguez, Junior Ruiz, and Melanie Ochoa.

Commissioners Rodriguez, Ruiz, and Ochoa explained the reasons why they decided to become Youth Commissioners.

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.

Andrew Castillo, Gonzales Resident, talked about the MST bus stops and ADA compliance, specifically the one on 5th Street. He elaborated on not being wheelchair accessible, and gave an example of his grandma having a disability, as well as kids and seniors in Gonzales. He asked the City to check all the bus stops and report on what needed fixing and what grants can pay for them. He also suggested revisiting the parcel tax measure since there's a lack of accessible infrastructure such as sidewalk repairs.

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.

6.1 Approve the Joint City Council/Successor Agency Regular Meeting Minutes of June 15, 2026

6.2 Approve Accounts Payable Warrants #54018-54131
Mayor Pro Tem Silva pulled Item 6.2 for clarification. On page 17, she asked about the check for Spectrum and Verizon Wireless.

City Manager Gil responded Spectrum was our main internet provider and Razzolink was our backup. And the one for Verizon was for cell phone services. She informed the charges get split since they are charged accordingly to different departments.

Mayor Pro Tem Silva also asked about the warrant for Tess Wellburn for payroll services since she thought we did payroll in-house.
6

City Manager Gil responded that Tess was originally from Green's Accounting and she only does the CalPERS, Social Security and other stuff that needs to be reported since she has that expertise, but payroll data and printing is still being done in house.

Mayor Pro Tem Silva asked about the payment to the SPCA, on the report she only saw 3 animals transported for the month of June, and asked if that was accumulative.

Police Chief Wise mentioned that was for the previous month but he will get back to her with the exact information.

Mayor Pro Tem Silva also asked the payment to Zanjero LLC.

Community Development Director Kinison Brown responded those were passed through costs to be covered by the Jackson Family Investments for the preparation of the EIR.

Mayor Pro Tem Silva asked about the warrant for AT&T for Calnet, if it was connected to the State.

City Manager Gil responded no, but she will get back to her with the details.

Mayor Pro Tem Silva asked about the check to MP Express on page 21 for a notice to print and if that could be printed in-house.

Police Chief Wise responded that was for a police department item, for printing of citations and they couldn't be printed in-house as they had judicial counsel approved rules that required certain wording, etc.

6.3 City Manager Report

6.4 Community Development Department Activity Report

6.5 Community Engagement & Recreation Activity Report

6.6 Fire Department Activity Report

6.7 Police Department Activity Report

6.8 Public Works/City Engineer Department Activity Report

6.9 Accept the 2025 Draft General Plan Annual Progress Report to be Submitted to the State of California Housing and Community Development Department.

6.10 Resolution No. 2026-38, A Resolution of the City Council of the City of Gonzales Approving a Master Funding Agreement with the Transportation Agency for Monterey County (TAMC) for Funding Allocations Approved by the Transportation Agency Board of Directors from July 20, 2026, through June 31, 2029

6.11 Resolution No. 2026-39, A Resolution of the City Council of the City of Gonzales Declaring Canvass of Returns and Results of the Statewide Direct Primary Election Held on Tuesday, June 2, 2026

6.12 Resolution No. 2026 -40, A Resolution of the City Council of the City of Gonzales Approving and Authorizing the City Manager to Execute a Legal Services Contract with Grossman Kelly PLLC to Prosecute on a Contingency Basis Legal Claims for Harm and Property Damage from Soil and Water Contamination
7

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

7. REGULAR AGENDA

7.1 Public Hearing to Consider Resolution No. 2026-41, A Resolution of the City Council of the City of Gonzales Approving and Accepting the Gonzales Police Department’s AB 481 Fiscal Year 2025-2026 Annual Military Equipment Report Pursuant to Government Code Section 7071(d) and Renewing City of Gonzales Ordinance No. 2022-131 “Approving Gonzales Police Department Policy Manual Policy 709- Military Equipment”
Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 6:19pm.

Public Hearing: Henry Martinez Jr. commented about not knowing there was a second drone.

Mayor Rios closed the public hearing at 6:21pm.

City Attorney Rodriquez clarified that the purchase of the second drone was done by way of an ordinance, and such ordinance was on the agenda and it came before the Council two separate times.

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

7.2 Public Hearing to Consider Resolution No. 2026-42, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2026-2027 - California Breeze Benefit Assessment District, Phase Nos. 1, 2 and 3; and Resolution No. 2026-43, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2026-2027 - California Breeze Parks and Open Spaces Maintenance Assessment District, Phases 1, 2 & 3 City Attorney Rodriquez mentioned the items that didn’t require a member to abstain from would be considered first.

Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 6:32pm.

Public Hearing: No comments came forward.
8

Mayor Rios closed the public hearing at 6:32pm.

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

7.3 Public Hearing to Consider Resolution No. 2026-44, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2026 -2027 - Canyon Creek Benefit Assessment District Nos. 1, 2 and 3; and Resolution No. 2026-45, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2026-2027 - Canyon Creek Parks and Open Spaces Maintenance Assessment District Nos. 1, 2 and 3
Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 6:34pm.

Public Hearing: No comments came forward.

Mayor Rios closed the public hearing at 6:34pm.

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

7.4 Public Hearing to Consider Resolution No. 2026-46, A Resolution of the City Council of the City of Gonzales Confirming Diagrams and Assessments and Levying Annual Assessments Pursuant to the Benefit Assessment Act of 1982 for Fiscal Year 2026-2027 - Gonzales Industrial Park Benefit Assessment District; and Resolution No. 2026-47, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and Levying Annual Assessments Pursuant to the Landscaping and Lighting Act of 1972 for Fiscal Year 2026-2027 - Gonzales Industrial Park Landscape Maintenance Assessment District
Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Rios opened the public hearing at 6:29pm.

Public Hearing: No comments came forward.

Mayor Rios closed the public hearing at 6:29pm.
9

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

7.5 Public Hearing to Consider 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; and Resolution No. 2026-49, A Resolution of the City Council of the City of Gonzales Confirming Diagram and Assessments and 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 Staff Report: City Attorney Rodriquez presented the staff report.

Mayor Pro Tem Silva opened the public hearing at 6:36pm.

Public Hearing: No comments came forward.

Mayor Pro Tem Silva closed the public hearing at 6:36pm.

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

7.6 Request for Direction Regarding City Council Term Limits Staff Report: City Attorney Rodriquez presented the staff report.

Public Comment: There was none.

It was the Council's consensus to direct staff to do further research and bring it back in 2028.

7.7 Surplus Land Act (SLA) Update
Staff Report: Community Development Director Kinison Brown presented the staff report.

Public Comment: Andrew Castillo appreciated the work being done on the Surplus Land Act process and encouraged the Council to make transparency a priority by keeping residents informed about the options being considered for each parcel, including housing, community facilities, and economic development.

It was the Council's consensus to direct staff to move forward. 10

8. BUSINESS FROM CITY COUNCIL

8.1 Board/Committee Reports
League of California Cities Monterey Bay Division - No report Association of Monterey Bay Area Governments - Council Member Funk reported they were dark in July.

Monterey Salinas Transit - No report

8.2 Oral Communications
Mayor Pro Tem Silva mentioned she and Council Member Orozco attended and volunteered at the California Rodeo. She announced the Paint the Town Purple on August 8th and the Monterey Fair on September 3 - 7, 2026.

Council Member Funk thanked the Police Department for their efforts during the Fourth of July event and parade, as well as staff for all their help and involvement with all the different events.

Council Member Orozco echoed Council Member Funk's comments and appreciated the co-sponsorship of the City. She also thanked all departments staff for their help with the different events. She reported that a Gonzales Resident won the Rodeo Buckle. She announced the St. Theodore's Church Reverse Draw Dinner this Friday.

Mayor Rios asked staff to get back to the farmer who offered to sell some property for aeriation fields since he said no one has contacted him back.

City Manager Gil responded that staff is still in conversations with the Water Board who are not so open to spray fields, so it would have to be an actual purchase to do something else with that land. She said staff is not against it, and applied for a few grants where we could potentially get the money to do a purchase.

Mayor Rios believed that if they're not willing to let us do that, the other option would be to at least have the additional expansion property so we can be better prepared in the future.

City Manager Gil indicated that she and Public Works Director Hurtado are completely on board with that, but just have to secure the funding, and would look for grants and earmarks out there where we're requesting funds for.

Mayor Rios thanked all staff for their help with the Car Show since it is a monumental effort and it was well organized. He heard nothing but positive comments and it was very well received. He also asked about the signage on Fifth Street.

Public Works Director Hurtado responded the 5th Street Truck Ban Project was underway and staff got clearance for the permits and the contractor will be here this Wednesday to install the signs.

Council Member Orozco announced the Rotary Golf Tournament on August 1st at Laguna Seca and all proceeds go towards scholarships for the High School students. Anyone wishing to contribute towards the silent auction, can let her know.
11

9. BUSINESS FROM CITY MANAGER
City Manager Gil thanked staff who helped put the Car Show together where they were able to give away eight bikes, TVs, etc. She announced the grand opening of Anytime Fitness tomorrow at 11:00am, the movie night at the pool on July 24th, Paint the Valley Purple event on August 8th at Central Park at 1:00pm, and Relay for Life on September 19th.

Police Chief Wise announced the National Night Out on August 4th from 6:00pm to 8:00pm on Fourth Street between Center and the Belden Streets and said this is an effort to strengthen the police and community relationships, partnerships build connections with the community, and share awareness information with our neighbors. He encouraged everyone to come out and become part of the tradition celebrated across the nation.

Public Works Director Hurtado reported on the grant staff is working on to purchase the land, and updated on the Wastewater Treatment Plant. He also informed that MST hired a consultant and they are reviewing and analyzing the bus stop, and staff met with PG&E regarding a new substation project.

Mayor Rios mentioned the local winery was up for sale for $44 million. He hoped someone local buys the facility.

Mayor Rios asked for a moment of silence in honor of former Mayor Liz Williams who passed away two weeks ago.

A moment of silence was observed by all present.

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

Speakers shall have a limited time of two (2) minutes. Please be brief and to the point.

There was none.

10.1 The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957 (Evaluation- City Manager).

City Attorney Rodriquez reported that they had not completed the evaluation and it would be continued to the next meeting. No other reportable action taken.

11. ADJOURNMENT
RESULT: PASSED[UNANIMOUS]
MOVER: Liz Silva
SECONDER: Maria Orozco
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco
ABSENT: Lorraine Worthy
The meeting was adjourned at 7:45pm.

ATTEST:

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

5.2 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Approve the Joint City Council/Successor Agency Regular Meeting Minutes of August 3, 2026

CITY MANAGER
ATTACHMENTS:

August 3, 2026 CC/SA Minutes
13

MINUTES

JOINT MEETING OF THE

GONZALES REGULAR MEETING

AND GONZALES JOINT CITY

COUNCIL/SUCCESSOR AGENCY
MONDAY, AUGUST 3, 2026
5:00 PM

1. CALL TO ORDER
Mayor Rios called the meeting to order at 5:00pm.

2. PLEDGE OF ALLEGIANCE
The flag was recited by all present.

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 Present
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 Marisol Gomez, Public Works Director/City Engineer Octavio Hurtado, and Police Chief Keith Wise.
14

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

Speakers shall have a limited time of two (2) minutes. Please be brief and to the point.

There was none.

4.1 The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957 (Evaluation- City Manager).

City Attorney Rodriquez reported the Council completed the evaluation of the City Manager.

4.2 The City Council will recess to Closed Session to meet with its designated representatives regarding labor relations matters pursuant to Government Code Section 54957.6. The Employee Groups are Gonzales Police Officers Association, Gonzales Police Supervision Association, International Fire Fighters Local 5388, Painters and Allied Trades District Council 36, and Unrepresented Employees.

City Attorney Rodriquez reported this item was being moved over to the second section of the closed session at the end of the agenda.

Council discussed negotiation matters with its negotiator Carmen Gil regarding the five identified employee groups. No other reportable action taken.

5. PRESENTATIONS

5.1 Introduction of New Finance Manager
City Manager Gil introduced Finance Manager Alex Avalos.

Finance Manager Avalos mentioned he started four weeks ago and elaborated on his background. He was happy to be part of the team and looked forward to working with everyone and applying his state experience to this role.

6. 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 Jr. announced all four of his family's cases were dropped and dismissed in the court and elaborated on those, and the lawsuits. He was glad it was over and he has his attorney. 15

Henry Martinez Sr., 112 10th Street, talked about district voting and having a brand new seat in District 4 and announced he turned in 30 signatures to run for that seat. He asked the Council to understand the districts and to not campaign in anyone else's district.

Henry McDowell announced he was running for Mayor and said he respected all. He said he is not afraid to get his hands dirty, help people with construction equipment, and he was healthy and fit.

Connie Arellano, 123 5th Street, said some know her as Connie Noriega and she announced she was running for candidacy for District 4. She's a lifelong resident of Gonzales and has been working with public service and emergency services for the last 27 years.

7. 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.

7.1 Approve Accounts Payable Warrants #54132-54213
Mayor Rios noticed there was a huge payment to Otto Construction and hoped that was the final one.

City Manager Gil responded it was one of the very last ones but will follow up with him on the details.

8. BUSINESS FROM CITY COUNCIL

8.1 Board/Committee Reports
Transportation Agency for Monterey County - No report.

Mayor Selection Committee - Mayor Rios announced Gonzales will be hosting the meeting this Friday.

Salinas Valley Recycles - Mayor Pro Tem Silva said there was no meeting in July. She announced the next meeting on August 20th at 6:00pm here in the Chambers.

8.2 Oral Communications
Council Member Worthy announced her term was up in November but this will be her last meeting as she'll be leaving Gonzales at the middle of the month. She said her husband and she decided to purchase a smaller home for the both of them and her last day in Gonzales will be August 20th.

Mayor Pro Tem Silva announced the Annual Swiss Picnic on August 16th at noon at the Swiss Rifle Club on Gloria Road.

Council Member Funk mentioned schools were ready to start in the next couple of weeks so be cautious and also thanked Council Member Worthy for her time and service and she's been a great friend.

Council Member Orozco thanked all those who supported the St. Theodore's Reverse Draw Dinner recently which was a great success. She also thanked the folks and business owners who supported and sponsored the Rotary Annual Golf Tournament this last weekend, which was also a great success and all the funds raised are for scholarships for our High School students, and to fund some of our community projects and programs. She hoped to see everyone at tomorrow's National Night Out event. 16

Mayor Rios reminded people to be extra careful as the kids start school on August 13th. He hoped the Police Department continues their educational effort on the electric scooters and helmets. He thanked Council Member Worthy for her service and said the Council will not be the same without her, she will be missed and wished her the best.

9. BUSINESS FROM CITY MANAGER
City Manager Gil announced the Paint the Town Purple event from the American Cancer Society this Saturday with the gathering at Central Park to remember those who have been impacted by the illness.

Police Chief Wise announced the National Night Out event on Fourth Street from 6:00pm - 8:00pm, where there will be free food, games, and raffles.

Mayor Rios said he will not be able to make it due to a doctor's appointment.

Public Works Director Hurtado updated on the trip hazards on Herold Parkway, Jersey Drive, Hereford Drive and Angus Drive that are being taken care of. He also announced that staff was hopeful to receive some grant money for improvements in town.

10. REGULAR AGENDA

10.1 Proclamation No. 2026-08 Honoring Lorraine P. Worthy RESULT: PASSED[UNANIMOUS]
MOVER: Liz Silva
SECONDER: Maria Orozco
AYES: Jose L Rios, Liz Silva, Scott Funk, Maria Orozco, Lorraine Worthy Mayor Pro Tem Silva read Proclamation No. 2026-08 and Mayor Rios presented it to Council Member Worthy.

Council Member Worthy said she has lived in this community for 35 years and has been blessed to be a part of it and involved in the different programs and activities, and she loves this town and wants it to flourish.

She told the Martinez's she appreciated them getting up here all the time but knows no one has ever harassed her from the Police Department or other people from the Police Department, and they get up here and talk and that's ok, but she wanted them to know that all the people that sit up there on the dais, they care as much about this community as they do. She wished them well on the running for Council seats but that they will see that they are only one vote just like everyone else is one vote. She thanked her husband and said they have loved all the people they've met here and thanked all staff for being so kind to her, especially in the past few weeks. She said they won't be too far but they're moving because they now need a smaller place and will be a block away from their grandson. She wished everyone the best.

11. CLOSED SESSION 2
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.

There was none.
17

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 Jose Guzman Perez.

Claim was denied. Direction provided to legal counsel. No other reportable action taken.

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

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

Council conferred with legal counsel; no other reportable action was taken.

12. ADJOURNMENT
The meeting was adjourned at 7:50pm.

ATTEST:

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

5.3 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Approve Accounts Payable Warrants #54214-54272

CITY MANAGER
ATTACHMENTS:

Warrants #54214-54272
19 20
21 22
23 24
25 26
27 28
29 CITY OF GONZALES
AGENDA
ITEM

5.4 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: City Manager Report

CITY MANAGER
ATTACHMENTS:

City Manager Report July 2026
30 Finally on April 27th we celebrated a day that so many of us have been waiting for – the July continued to be a busy month for the City. We partnered with the Rotary Club of Gonzales to celebrate the 4th of July and Central Park. It was a great event filled with good music, good food, and good people. On July 15th, we celebrated the Grand Opening of Anytime Fitness, and on July 18th, the City held its Annual Car Show that turned out to be another great one. We welcomed over 100 cars, and the day turned out to be a beautiful one; filled with laughter, joy and unity all around.

Community Engagement
We would like to THANK the Gonzales High Football Team for coming out during their summer vacation and supporting the City by helping to paint one of our old buildings. The team did a great job and helped give the old space a facelift.

City of Gonzales
City Manager Report
July 2026
31 Housing
On the housing front, City staff continues to advance the Vista Lucia housing project.

August will be busy as we work to prepare to go in front of the Board of Supervisors for approval of the Tax Sharing Agreement for the project, and then potentially in front of the LAFCo Commission for further discussion on Agricultural Mitigation; and then hopefully, for full project approval sometime in the fall. Stay on top of each of the developments by joining the interested in housing list by contacting the Community Development Director at [email protected] Save the Date
Join the City Team at the Relay for Life event in Downtown Salinas on September 19th from 4:00pm – 9:00pm. To join the City team or donate to the cause, register at Relay for Life of The Salinas Valley under the City of Gonzales. See you there! 32 CITY OF GONZALES
AGENDA
ITEM

5.5 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Taven M. Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Community Development Department Activity Report

COMMUNITY DEVELOPMENT DEPARTMENT
SURPLUS LAND ACT - Update
Staff is in process with Piini Realty to appraise and seek a fair market value for the several properties listed by the city for Surplus Land disposition. Staff continues to stay engaged with the one residential development company that has expressed interest in the properties, and they are currently exploring potential housing project designs on the Cipriani Park properties and the Marchetti property alongAlta.

HOUSING
The Vista Lucia Specific Plan . On July 31st, staff received the response letter from LAFCo detailing our remaining items to determine the application complete. On August 11, 2026, the Monterey County Board of Supervisors, after much deliberation, approved 5-0 a Tax SharingAgreement with the City of Gonzales. The City of Gonzales will have a companion resolution documenting the City’s acceptance of tax sharing with the County and that is in this August 17, 2026, packet as a separate item. Following the signing of an approved resolution/agreement, City staff will submit both the City and County resolutions back to LAFCo and will then have satisfied another significant, “completeness item,” leaving just the agricultural mitigation issue to deliberation on August 24, 2026, with the LAFCo board. Full project consideration by LAFCo has yet to be scheduled by LAFCo staff.

The Puente Del Monte Specific Plan . City staff and our consultants (Slama Consulting and EMP Planning Group) continue to proceed in the preparation of the EIR.

ECONOMIC DEVELOPMENT
The City of Gonzales Economic Development staff and intern continue with implementing a Local Business Promotion Program to showcase Gonzales businesses through social media and other channels.Additionally, we will have our intern explore making small commercials for the City of Gonzales, to help market vacant and available structures, and provide positive social media content.

BUILDING DIVISION ACTIVITY
33 From July 1, 2026, to July 31, 2026 (31 reporting days) the City issued five (11) permits for window replacement, stucco, re-roofs, electrical work, plumbing, insulation and drywall. The estimated value of improvements was $232,242.

CSG Consultants have now assumed the Building Division support services and there was no gap in city services, in fact, we are able to provide improved availability for inspection services, and we have much reduced expenses attributed to providing a Building Official for the City. CDD staff has assumed more code enforcement responsibilities to add further cost effectiveness.

CODE ENFORCEMENT
The City will continue to meet with property owners, inspect potential violations and start documentation to progress to remedies. In a seasonal and initiative-taking mode, City staff is also looking for overgrown weeds and asking property owners to cut and maintain their properties for fire safety purposes.

CITY BUSINESS LICENSES
The new fiscal year has begun, and all businesses are required to be current with their business licensing. 34 CITY OF GONZALES
AGENDA
ITEM

5.6 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Community Engagement & Recreation Activity Report

RECREATION/COMMUNITY ENGAGEMENT DEPARTMENT
Kid Power Summer Camp
Kid Power Summer Camp in July was filled with joy, learning, creativity, and memorable hands-on experiences. Throughout Weeks 4–7, campers participated in activities centered around recycling, STEAM, ocean conservation, and building confidence.

Campers learned about recycling and the importance of healthy soil with Salinas Valley Recycles, visited the fire station, and practiced independence during a supervised field trip where they placed and paid for their own orders. During STEAM Week, campers built race cars, created marble runs, and made slime, encouraging creativity, problem-solving, and teamwork.

Campers also learned about protecting our oceans through a visit from Save the Whales and enjoyed hands-on experiences with reptiles and horses. During Summerween and Show-and-Tell, campers practiced speaking in front of their peers, while our older campers created and performed a puppet show for the younger groups.

One of the most rewarding parts of the summer was giving our older campers the opportunity to plan and lead weekly activities for the younger groups. They worked together to choose games, prepare materials, explain instructions, and lead the activities independently with staff support. This experience helped build leadership, communication skills, teamwork, and confidence. Watching even some of our shy campers step outside their comfort zones and take on leadership roles was especially rewarding and exceeded our expectations.

City Sports League
Our new summer youth co-ed volleyball Clinic season went very well. Teams had picture day on July 9th. The kiddos looked like they all had a blast this season. Our last game was on Friday the 17th. Our numbers were great for our first year and we anticipate they will be even higher next year. Next year we will collaborate with Soledad as well and be able to compete against them.

Summer Youth Flag Football has team pictures on July 9th. We had a decent turnout but unfortunately not all players were able to attend. The season was a blast. The kids look awesome in the new NFL style jerseys. The last games were on Wednesday the 22nd for ages 5-7 and on Friday the 24th for ages 8-14. Next season we will be collaborating with Soledad and Greenfield to make it a South County Youth NFL Flag Football League. We will be competing against each other. It will be exciting! 35 Adult Summer co-ed Rec Softball league went very well. We had teams end the season with close records.

Championship games were a lot of fun to watch. Upper bracket Championship teams were Balls Deep and Savages. Lower bracket championship teams were Pitch Please and Big Little Leaguers. Upper championship was played on Tuesday the 28th and lower bracket championship was played on Thursday the 30th. The two championship teams were Balls Deep and Big Little Leaguers.

Youth soccer is going well. We have 33 registered participants so far and 5 registered volunteers. Season will startAug 31st with player assessments. Games will start on Friday and Saturday September 25th and 26th.

Recreation Community Engagement
On Saturday, July 18th, we hosted our annual Downtown Car Show on 4th Street. We welcomed well over 100 vehicles, motorcycles, pedal cards and even a military tactical vehicle! We wish to extend a big thank you to our City staff that assisted with the event and all of our volunteers, including GYC students and the two Car Clubs that worked with us to host this event, Street Life Car Club and Gonzales Customs. We also have to give them thanks for their generous donation of all the raffle prizes they donated, including multiple bikes! The funds raised will help support youth initiatives through the Recreation and Community Engagement Department.

On Tuesday, July 21st, we celebrated the ribbon cutting of Anytime Fitness in Gonzales! This was an exciting milestone for our community, as access to a local fitness facility has been something residents have advocated for over the years. We greatly appreciate the Anytime Fitness team for consistently participating in City events, connecting with residents, and helping build excitement leading up to their grand opening. This new business is not only a great addition to our community, but also an opportunity to promote healthier lifestyles and wellness for our residents.

On Monday, July 20th, the City of Soledad hosted South County Cities for a Joint Ribbon Cutting of the “Talk to Me” boards, an initiative funded by Supervisor Lopez, but brought forward by a City of Soledad Councilmember. The purpose of the board is to provide community members with an inclusive tool for individuals who may have communication differences and to raise awareness within the community. The boards display different pictures and signs and have been implemented in different parks across south county.

In Gonzales, the communication board has been displayed at the Central Park Playground.

GonzalesYouth Council
During July, GYC Commissioners continued their Summer Fellowship by connecting with City staff and gaining hands-on insight into various City departments through tours of the Wastewater Treatment Plant, Fire Stations, and Police Station. The fellowship concluded on July 9 with a meet-and-greet featuring GYC alumni, who shared their experiences, key takeaways, and how the skills they developed through the program have continued to support them in college and beyond. The GYC Commissioners are scheduled to present their Summer Fellowship Capstone at theAugust 17 City Council Meeting.

ATTACHMENTS:

Activity Report Pictures
36 Community Engagement
& Recreation Department
Summer Camp
City Sports League
Our Summer Camp Kids exploring
during the visit from Salinas Valley
Recycles.

Volleyball Picture Day.

Our older summer camp kids, leading an
activity for our younger kids.

Our campers during one of their crafting
activities.

Adult Softball Champions-Upper Bracket.
37 Community Engagement
& Recreation Department
Recreation/ Community Enagagement
Gonzales Youth Council
Mayor Rios and Ryan Avila, Anytime
Fitness Manager for Gonzales location.

Recreation Staff from Greenfield,
Soledad, and Gonzales during the
Communicatio Board Ribbon Cutting.

One of our many award receipents for our
annual Downtown Car Show.

Two of our current GYC Commissioners
with our GYC alumni.

Two of our GYC Members and one of
our Pool Staff volunteering during our
Annual Car Show.
38 CITY OF GONZALES
AGENDA
ITEM

5.7 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, City Manager
SUBJECT: Police Department Activity Report

POLICE DEPARTMENT
Crime and Arrests
The Gonzales Police Department investigated 4 Party I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of July 2026. During the same time last year, there were 4 Part I Crimes investigated.

During the month of July, Officers made 11 arrests. During the same time last year, there were a total of 14 arrests.

During the month of July, the department initiated 20 Abandoned Vehicle Abatement (AVA) / 72-hour parking violation cases. 20 violations were self-abated by the registered owner upon notification of the Municipal Code Violation. During the month of July, the department responded to 4Alarm Calls.

Calls for Service
The Department responded to 565 calls for service in July 2026. During this month there were a total of 56 report taken; 44 crime / informational, 5 TrafficAccidents and 7 Driving Under the Influence (DUI).

Animal Control
During the month of July 2026, theAnimal Control (ACO) provided the following services. *NUMBERS DO NOT REFLECTANIMALS TRANSPORTED BY THE PUBLIC TO THE SPCA* TotalAnimals
Captured
Dead Injured Bite Cases
Returned to
Owner
Transported to
SPCA
Cats 0 2 0 0 0 0
Dogs 5 0 0 2 4 1
Total 5 2 0 2 4 1
39 Significant Cases
Although the Police Department responded to 565 calls for service during the month of July 2026, the most significant cases involved 4 Part I crimes.
0 - Homicide, 0 - Rape, 0 - Robbery, 0 -Assault, 1 - Burglary, 2 - Larcenies and 1 - Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

Other
Gonzales Police Department Officers along with Gonzales Police Explorers participated at the Fourth of July event at Central Park on Saturday, July 4, 2026.
40 CITY OF GONZALES
AGENDA
ITEM

5.8 ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Octavio Hurtado, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Public Works/City Engineer Department Activity Report

PUBLIC WORKS/CITY ENGINEER DEPARTMENT

WASTEWATER
Existing Municipal Wastewater Treatment Plant
The City received a visit from representatives from the Central Coast Regional Board to observe the condition of the Municipal Plant. Although the plant needs further work which is underway, the progress made to date was noticed and appreciated.

The newly dredged Pond C continues to be used sparingly. Pond B is in the process of being emptied out.

Public Works staff continue to use the rented loader and dump truck to clean out the smaller percolation basins and to build up the new perimeter berm that was constructed by staff to prevent potential spills from reaching the neighboring agricultural fields.

Public Works has graded the service roads at the plant to fill potholes. Soil from the deepening of Pond D is being used to strengthen the service roads between the ponds to improve access.

Public Works staff have been performing weed abatement around the perimeter of the ponds.

We are currently at 15 inches of free board in our primary and secondary ponds and are holding back the release of water to lengthen the treatment time.

The Clarification system that was rented from Rain for Rent has been cleaned and dismantled and is ready to be picked up.

A new dichlorination unit was installed in the existing Municipal Wastewater Treatment Plant to mitigate any excess chlorine that may get to the plant that negatively affects the effectiveness of the biological process necessary to treat sewage flows. The unit continues to be calibrated to ensure it is working as intended. 41 The aeration system is working at 100%. We have had to service aeration units as needed.

All three lift station pumps at the headworks are working properly.

Staff continue to check the influent and effluent, freeboard, and run daily inspections, and collect samples for the County to conduct lab testing of Dissolved Oxygen levels, pH, and conductivity. Staff also continue to work on general plant maintenance and cleanup including weed control and access road maintenance. Staff continue to monitor and up-keep the lift stations around the City Monday, Wednesday, Friday and Saturdays.

Industrial Wastewater Treatment Facility
The Contractor (Gateway Pacific) began construction on 7/21/2025. The contractor, construction manager, design consultant, and City staff hold progress meetings every two weeks to discuss open items, status of submittal reviews, schedule, and other business. The Contractor continues to install necessary piping and pouring concrete at the headworks. Work is also being performed on the perimeter fence.

Gateway is in the process of working on the headworks, completing the aeration piping and building out the ponds.

BKF (MNS) gave a tour to the American Public Works Association Young Members Group on Wednesday August

12. The City of Gonzales interns were also in attendance.

WATER
Well 5 is out of service, Maggiora Brothers is making the repairs.

The refurbishment of Well 4 is complete and back in service.

Staff tests for chlorine residual daily, and maintenance on the water system. Staff repairs chlorine leaks and performs maintenance on the wells. For the month of March, all water samples taken at the sampling stations for the water system tested negative for coliform. There were 57 door tags this month, prior to shut offs. We had 8 disconnects because of non-payment.

PARKS
Staff continue to mow turf areas in the City parks regularly. Staff cleans restrooms, cleans trash, and make repairs in parks as necessary. Staff provided support for the Relay for Life Color the Town Purple event at Central Park.

GOVERNMENT BUILDINGS
Staff continue to clean the Vosti Center restrooms daily, clean the Council Chambers weekly and order all supplies for City buildings and disburses them appropriately. Staff continues to get the bugs out of the Community Center making sure items under warrantee are repaired by the contractor.

DRAINAGE/WEED CONTROL/FIRE PREVENTION
Staff continue to perform weed abatement in the slough as a fire prevention measure. Work has been completed between C Street and First Street. Efforts will continue.

STREETS
The 2026 Sidewalk Repairs project was completed in the CA Breeze Subdivision to address trip hazards. The project replaced a total of 595 square feet of sidewalk, making improvements to 7 locations. The project was funded by grant funds received. Public Works staff assisted with traffic control and demolition removal and disposal to offset the costs of the project and increase the number of sites repaired. 42 Public Works staff have been painting school crosswalks in anticipation of the start of the new school year.

Staff have met with the street sweeper to identify ways to improve service. We will be looking at providing the sweeper with two locations to add water to the truck and two locations to dispose the debris to increase efficiency.

Fifth Street Truck Ban
The Truck Ban project is nearly complete. The contractor is waiting for two signs that were added to the project by the Caltrans approval process. The Ban is in place.

Fourth Street Pavement Rehab
Staff will initiate the completion of the improvement plans for the project and add the identified multimodal components included int the comprehensive multimodal grant application submitted to TAMC under the competitive RSTP call for projects. The application was submitted June 5, 2026. Technical Advisory Committee recommend approval of this project for funding to the TAMC board on August 6, 2026. The TAMC board meeting is scheduled forAugust 26, 2026.

TAMC Safe Routes to School Program
Staff engaged TL Engineering to prepare several alternatives for pedestrian safety improvements along Fifth Street from the Southbound Highway 101 on/off ramps. On 5/09/2025 TLEngineering submitted draft alternatives for City staff review. Funding is a $250,000 RSTP grant from the TAMC.

Staff will initiate the completion of the improvement plans to include the components of this project in a comprehensive Multimodal GrantApplication submitted to TAMC under the competitive RSTP call for projects. The application was submitted June 5, 2026. Technical Advisory Committee recommended approval of this project for funding to the TAMC board onAugust 6, 2026. The TAMC board meeting is scheduled forAugust 26, 2026.

Grant Opportunities
The City of Gonzales Citywide Multimodal Grant application submitted to TAMC received the second highest application score and is recommended to the TAMC Board for funding in the amount of $3,219,773.

The City of Gonzales Quick-Build Grant application for the installation of traffic attenuation improvements (speed bumps) and for the painting of red curbs to address the new daylighting law received the highest application score and is recommended to the TAMC Board for funding in the amount of $187,000.

Applications were submitted June 5, 2026. TechnicalAdvisory Committee recommended approval of the projects for funding to the TAMC board onAugust 6, 2026. The TAMC board meeting is scheduled forAugust 26, 2026.

Regional Surface Transportation Program (RSTP) and TDA 2% funds are distributed on a three-year cycle with the next cycle coming up this year. The funds are administered by TAMC and are distributed in various ways. 10% goes to TAMC for special projects, 3.6 million gets distributed to the local agencies under a fair share program based on population. Gonzales is expected to receive $54,237. The remaining 15.4 million is distributed through a competitive grant application and quick build projects. The grant application is further divided into large projects and quick build projects. The quick build projects are meant to accomplish needs and add amenities that improve safety and promote bike and pedestrian use to an existing street project that the City is programming. The following are projects the City submitted a competitive RSTP application for.

Staff have submitted a Citywide Multimodal GrantApplication submitted to TAMC under the competitive RSTP call for projects. The project includes a complete design analysis on the bike and pedestrian routes to make necessary improvements such adding a buffer to the bike lanes, adding curb extensions to the cross walk between the High 43 School and the Middle School, making improvements to Fifth Street and Rincon Rd, Restriping the US 101 on and off ramps per the Safe Routes to school participatory project, removing the median along Alta Street near First Street including the relocation of the traffic light, striping Alta Street, repaving and adding bike lanes to Gonzales River Road and coordinating with the County to add bike lanes onAlta Street north of 10th Street to Corda Road.

Staff also submitted a separate quick build grant application for traffic calming at Del Monte Drive and Cielo Vista and Del Monte Drive and Fairview Drive. This project is scheduled to move forward in the fall of 2026 regardless of the grant award outcome. The quick build grant also requests funds to assist in the implementation of the daylighting law to add red curbing at intersections.

EVENTS
Public Works assisted in the preparation efforts for the Relay for Life event at Central Park.

Public Works assisted in getting downtown ready for the annual car show.

ATTACHMENTS:

Activity Report Pictures
44 Public Works Activity Report – July 2026
Public Works repainting crosswalks
Slough between C St. and First St.
45 Sidewalk in front of 808 Hereford Dr marked for replacement Crew works to add in grooves and edges onto new concrete pour Results
46 Lifted sidewalk in front of 410 Angus Dr.

Results
Crew works to level out the concrete and space out the cracks evenly 47 Uplifted Sidewalk in front of 712 Jersey Dr
Area excavated and blocked off ready for a new pour
Results
48 A small section in front of 715 Jersey Dr was also removed and repaired due to lifting 49 Herold Pkwy
Results
50 CITY OF GONZALES
AGENDA
ITEM

5.9 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-50, A Resolution of the City Council of the City of Gonzales Approving a Property Tax Transfer for the Proposed Vista Lucia Reorganization Involving Annexation of 771 Acres to the City of Gonzales and Detachment from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District

COMMUNITY DEVELOPMENT DEPARTMENT

RECOMMENDATION
It is recommended that the City Council Consider and Adopt Resolution 2026-50, A Resolution of the City Council of the City of Gonzales Approving A Property Tax Transfer for the Proposed Vista Lucia Reorganization Involving Annexation of 771 acres to the City of Gonzales and Detachment from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District.

BACKGROUND
On September 2, 2025, the City Council approved multiple actions to approve the Vista LuciaAnnexation project and authorize the submittal of an application to the LocalAgency Formation Commission (LAFCO) of Monterey County to consider the annexation of the proposed 771-acre project into the City of Gonzales and detachments from the Monterey County Resource Conservation District and Gonzales Rural Fire Protection District. The project is officially in an incomplete status because the proposal cannot be considered by LAFCO until a property tax transfer agreement with Monterey County has been approved by both the City and the County.

On Tuesday, August 11, 2026, the Monterey County Board of Supervisors approved the property tax transfer for the proposed “Vista Lucia Reorganization” by Resolution No: 2026-50. Approval by the Gonzales City Council is required to deem the application complete and proceed to public hearing to likely take place in Fall 2026.

REVIEWAND ANALYSIS
The proposed annexation will ultimately result in the addition of 771 acres to the City of Gonzales, in what is currently planned as four annexation phases. By law, the County and City are required to agree to a new tax transfer 51 agreement for the property to be annexed to the City prior to the time that said reorganization is considered by LAFCO.

The Monterey County Board of Supervisors has approved the use of a “pro forma fair share tax transfer resolution” applicable to such reorganizations and is basically unwilling to deviate from the same. As such, the formula presented for Council consideration and approval is the same formula used in past annexations and by other cities since 1980. While there have been many conversations about amending the formula, no formal effort has been made to negotiate changes to the over 45-year-old formula. Such an effort is likely to take a significant amount of time and be a fairly complex negotiation process.

The established tax transfer formula as set forth in the resolution provides that the County and affected agencies will transfer a percentage of their “tax base revenue” based on the pro rata share of the City’s equivalent tax rate to the combined City/County equivalent tax rates. The formula also includes adjustments to accommodate State mandated shifts of County and City revenues to the Education Revenue Augmentation Fund. Of the total amount of property taxes available for distribution, the City would receive 42.65% and the County would receive 57.35%. The reason for this perceived inequity is due to the fact that the ERAF percentage for the City of Gonzales is much smaller (12%) than the County’s (40%), whereas the City gives far less to the State in mandated shifts in terms of overall percentage than the County is required to. After adjustments, the City receives 13.32% of the total property tax increment, the County receives 15.90%.

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:Annexation and construction of the Vista Lucia project will provide much-needed housing and additional employment opportunities, while creating a northern agricultural edge for the city to ensure that it keeps its smalltown character.

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.

Explain: Development of housing opportunities in Gonzales will improve opportunities for future generations to remain in Gonzales and provide greater economic opportunities ensuring that the City can improve the quality-of-life services that are provided to the community.

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.

Explain: See above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes ___ No ___ N/A
• Housing X Yes ___ No ___ N/A
• Recreation X Yes ___ No ___ N/A
• Environment X Yes ___ No ___ N/A
• Education X Yes ___ No ___ N/A
Explain: See Vision explanation above.
52 ALTERNATIVES
Alternatively, the City Council may choose not to adopt the proposed resolution. This action would result in the City having to work with the County to re-negotiate the 45-year-old formula, which will certainly result in delays in annexation to LAFCO since the tax share agreement must be approved according to statute prior to the time that LAFCO can consider the application for annexation in a public hearing.

BUDGET IMPACT
According to the report completed by Willdan Financial Services related to the Vista Lucia Project, it is projected upon buildout that the City would receive $3,222,820 in annual revenue with $6,496,252 in expenses, resulting in a deficit of $3,272,433 per year. Collection of the City share of property taxes represent over 76% of that revenue ($2,463,789) Creation of Community Facilities Districts or other long-term financing mechanism will be required to offset this deficit and make the Project revenue-neutral. Additionally, the City would receive one-time revenues associated with permit fees and an anticipated one-time development impact fees (adjusted for any credits for identified improvements constructed by the applicant) of over $140 million over time upon full build-out of the Project to offset the capital construction costs to accommodate future growth in the City of Gonzales.

CONCLUSION
Staff recommends approval of the action. Staff also supports greater conversations in partnership with the other Salinas Valley cities about working together with Monterey County to have meaningful discussions and amendments to the Tax Transfer Agreement Formula to reflect the many changes and challenges in local government administration that have occurred over the last 45 years since the passage of Proposition 13 in California.

ATTACHMENTS:

Resolution No. 2026-50
BOS Resolution - Vista Lucia
53 RESOLUTION NO. 2026-50

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

A PROPERTY TAX TRANSFER FOR THE PROPOSED VISTA LUCIA
REORGANIZATION INVOLVING ANNEXATION OF 771 ACRES TO THE CITY OF

GONZALES AND DETACHMENT FROM THE MONTEREY COUNTY RESOURCE

CONSERVATION DISTRICT AND GONZALES RURAL FIRE PROTECTION DISTRICT WHEREAS, the Revenue and Taxation Code Section 99 Assembly Bill 8, Chapter 282) Statutes 1979, as amended by Senate Bill 180 (Chapter 801) provides for the Monterey County Board of Supervisors to determine an appropriate tax transfer for all jurisdictional changes of organization occurring within Monterey County and for the City Council of any affected City to concur on the transfer prior to the proposal being considered by the Local Agency Formation Commission (LAFCO); and
WHEREAS, the City of Gonzales has submitted an application to LAFCO for the Vista Lucia Reorganization involving annexation of 771 acres to the City and detachments from the Monterey County Resource Conservation District and the Gonzales Rural Fire Protection District, located in Tax Rate Area 076-001; and
WHEREAS, pursuant to Revenue and Taxation Code Section 99(b)(6), the Executive Officer of LAFCO shall not issue a Certificate of Filing (Government Code Section 56828) for a change of organization until a change of property tax revenue is negotiated; and WHEREAS, the Monterey County Board of Supervisors adopted as policy a set of formulas to be used for all jurisdictional changes of organization on April 29, 1980 (Resolution #80-249); and
WHEREAS, the current distribution of property taxes within tax rate area 076-001 is as follows:

27.72% - Monterey County’s Share

1.50% - Affected District’s Share

70.78% - Non-affected District’s Share
100.00% - Total; and
WHEREAS, the Revenue and Taxation Code Section 99 (Senate Bill 180, Chapter 801) requires that non-affected local agencies percentage share will remain constant; and WHEREAS, the County of Monterey and the City of Gonzales wish to agree to a fair share distribution of remaining property tax revenues; and
54 WHEREAS, the County of Monterey has realized a 41% reduction and the City of Gonzales has realized a 13% reduction in property tax revenue imposed by the State under Senate Bill 617, Chapter 699. Statutes 1992; and
WHEREAS, each year thereafter both the County and the City continue to shift revenues to the Education Revenue Augmentation Fund (ERAF);
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Gonzales does hereby agree to the following formulas for property tax base and increment distribution within Tax Rate 076-001 after change of organization/reorganization.

Tax Rate Area 076-001
A. Distribution of Property Tax Base
Property Tax base is the property tax revenue that is available prior to change of organization/reorganization:

Prior to Change of Organization/Reorganization:
(City of Gonzales, Tax Rate Area 007-005)
Current Ratio
City of Gonzales - 15.25% 52.15%
Monterey County - 13.99% 47.85%
Based on existing Tax Rate Area 076-001, Monterey County’s share of property tax reduced by 40% is equal to 16.64%. The total property tax available for distribution in the proposal area is equal to 16.64%.

After Change of Organization/Reorganization:
(New Tax Rate Area – To Be Assigned)

16.64% - Property Tax Available for Distribution

1. City of Gonzales’s Share of Total Property Taxes Collected:

16.64% - Property Tax Available for Distribution
X 52.15% - City of Gonzales’s Current Ratio
= 8.68%
+ 1.50% - Fire District Share
= 10.18%

2. Monterey County’s Share of Total Property Taxes Collected:
55 16.64% - Property Tax Available for Distribution
X 47.85% - Monterey County’s Current Ratio
= 7.96%
plus

11.08% - The Adjustment for State Tax Shift
= 19.04%
Formula for property tax base allocation to the City of Gonzales from Tax Rate Area 007-018 after change of organization/reorganization.

City of Gonzales’s Property Tax Revenue =
Total Property Taxes Collected X 10.18% X
Full Months Remaining in Tax Year Divided by 12.

B. DISTRIBUTION OF PROPERTY TAX INCREMENT:

Property tax increment is the increase in property tax revenue above the base resulting from the increase in assessed value of property after the change in organization/reorganization.

The formula recognizes that all future growth will be subject to a shift to ERAF in the amount of 40% for the County and 12% for the City. After the shift, the County and the City will be in the same relative position as before dividing the remainder.

Prior to Change of Organization/Reorganization:
(City of Gonzales, Tax Rate Area 007-018)
Current
Rate
 ERAF
Adjustment
= Resulting
Rate
Resulting
Ratio
City of Gonzales 15.25% 88.0% 17.33% 42.65%
Monterey County 13.98% 60.0% 23.30% 57.35%
Based on existing Tax Rate Area 126-001, Monterey County’s share of property tax is 27.72%.

The total property tax available for distribution in the proposal area is 27.72%. The new Resulting Ratio calculated above is applied to the increment. 56 After Change of Organization/Reorganization
(New Tax Rate Area to be Assigned)

27.72% = Property Tax Available for Distribution

1. City of Gonzales’s Share of Property Tax Increment:

27.72% - Property Tax Available for Distribution
X 42.65% - City of Gonzales’s New Resulting Ratio
= 11.82% -
+ 1.50% - Fire District Share
= 13.32%

2. Monterey County’s Share of Property Tax Increment:

27.72% - Property Tax Available for Distribution
X 57.35% - Monterey County’s New Resulting Ratio
= 15.90%
Formula for property tax increment to the City of Gonzales from Tax Rate Area 076-001 after change of organization/reorganization:

City of Gonzales’s Property Tax Increment =
Total Property Tax Increment Collected X 13.32% X
Full Months Remaining in Tax Year Divided by 12.

PASSED AND ADOPTED this 17th day of August 2026, by the City Council of the City of Gonzales, 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
57 Before the Board of Supervisors in and for the
County of Monterey, State of California
Resolution #
Approve a Property Tax Transfer for the proposed )
“Vista Lucia Reorganization” involving phased )
annexation of 771 acres to the City of Gonzales )
and detachments from the Monterey County )
Resource Conservation District and Gonzales )
Rural Fire Protection District )
WHEREAS, in 2014, the City of Gonzales (City) and the County of Monterey (County) entered into a “Memorandum of Agreement (MOA) Regarding Cooperation on Planning, Growth and Development Issues”. In general, this MOA addresses issues related to the desired eastward direction of growth for the City, as well as issues related to infill development.

WHEREAS, the City has submitted a resolution of application to the Monterey County Local Agency Formation Commission (LAFCO) for the “Lucia Vista Reorganization” involving annexation of 771 acres to the City and detachments from the Monterey County Resource Conservation District and the Gonzales Rural Fire Protection District (Project).

WHEREAS, the Project will allow for development of 3,498 residential units within the City of Gonzales, along with 96,000 square feet of local serving commercial uses.

WHEREAS, representatives of the City and County have held discussions concerning the Project, and the County has received materials from the City concerning the Project.

WHEREAS, the MOA lists agreements for orderly growth and direction of future development, by specifically referencing the Urban Growth Boundary (UBG) and Sphere of Influence (SOI) shown on the map adopted in the City’s General Plan and attached as Exhibit A to the MOA (Sections 1 and 2 of the MOA, specifically Section 2.1.a referring to the map). The proposed Vista Lucia annexation is located on the map attached to the MOA as “Fanoe Ranch,” which is within the UBG/SOI. This area, east of the developed portions of the City, is recognized as a future development area in the MOA. As such, the Vista Lucia annexation is consistent with the growth boundaries and direction described in the MOA.

WHEREAS, since adoption of the MOA and prior to proceeding with the proposed annexation, the City has designated infill opportunities and increased density within the developed boundaries of the City, including areas west of Highway 101, in fulfillment of the commitment to encourage infill before annexing farmlands. This was done in the City’s adopted 6th Cycle Housing Element by upzoning existing parcels and adding housing overlay opportunities on properties within existing City boundaries.

WHEREAS, other specific planning actions, including phasing of development, agricultural land compatibility and conservation, and traffic mitigation are addressed in the MOA. The City is proposing the adoption of a phased development through approval of specific plans for two neighborhoods: the “Santa Lucia Neighborhood” and the “Gabilan Neighborhood.” Each of these neighborhoods/phases are less than 400 acres in size individually (Section 4.1 of the MOA). None of the development will be south of Gloria Road (Section 3). All applicable traffic mitigation fees will be paid and the County Public Works has been consulted on road improvements and jurisdiction within and adjacent to the project and along Associated Lane (Sections 3c and 7). The project will contain a range of densities (between 3 and 15 units/acre), a variety of commercial, residential, open space, and institutional uses. The design of the neighborhoods 58 incorporates agricultural buffers as shown on the maps in the Specific Plans on file with the City (Section

5.2).

WHEREAS, the City has established an Agricultural Land Conservation Program; however, the developer has pursued direct mitigation for agricultural impacts rather than payment of a mitigation fee. The City attached a memorandum to its LAFCO annexation proposal dated February 17, 2026, which describes the developer’s efforts to contact and secure easements as direct mitigation on lands adjacent to the City’s SOI.

As proposed, the developer intends to purchase easements on prime farmland located approximately 9 miles from the City limits. This effort is consistent with the intent of the agricultural mitigation commitments in the MOA (Section 6).

WHEREAS, the Monterey County Board of Supervisors finds that the Vista Lucia Reorganization is consistent with the specific planning, phasing, compatibility, and mitigation policies described in the MOA.

WHEREAS, the Revenue and Taxation Code Section 99 (Assembly Bill 8, Chapter 282) Statutes 1979, as amended by Senate Bill 180 (Chapter 801) provides for the Monterey County Board of Supervisors to determine an appropriate tax transfer for all jurisdictional changes of organization occurring within Monterey County and for the city council of any affected City to concur on the transfer prior to the proposal being considered by LAFCO.

WHEREAS, pursuant to Revenue and Taxation Code Section 99(b) (6), the Executive Officer of LAFCO shall not issue a Certificate of Filing (Government Code Section 56828) for a change of organization until an exchange of property tax revenue is negotiated.

WHEREAS, the Monterey County Board of Supervisors adopted as policy a set of formulas to be used for all jurisdictional changes of organization on April 29, 1980 (Resolution #80-249).

WHEREAS, the current distribution of property taxes within tax rate area 076-001 is as follows:

27.72% - Monterey County’s Share

01.5% - Affected District’s Share

70.78% - Non-affected District’s Share
100.00% - Total
WHEREAS, the Revenue and Taxation Code Section 99 (Senate Bill 180, Chapter 801) requires that nonaffected local agencies percentage share will remain constant.

WHEREAS, the County and the City wish to agree to a fair share distribution of remaining property tax revenues.

WHEREAS, the County has realized a 40% reduction and the City has realized a 12% reduction in property tax revenue imposed by the State under Senate Bill 617, Chapter 699, Statutes 1992.

WHEREAS, each year thereafter both the County and the City continue to shift revenues to the Education Revenue Augmentation Fund (ERAF).

NOW, THEREFORE, BE IT RESOLVED that the Monterey County Board of Supervisors does hereby agree to the following formulas for property tax base and increment distribution within Tax Rate Area 076- 001 after change of organization/reorganization.
59 A. DISTRIBUTION OF PROPERTY TAX BASE:

Property tax base is the property tax revenue that is available prior to change of organization/reorganization.

Prior to Change or Organization/Reorganization:
(City of Gonzales, Tax Rate Area 007-005)
Current Ratio
City of Gonzales - 15.25% 52.15%
Monterey County - 13.99% 47.85%
Based on existing Tax Rate Area 076-001, Monterey County’s share of property tax reduced by 40% is equal to 16.64%. The total property tax available for distribution in the proposal area is equal to 16.64%.

After Change of Organization/Reorganization:
(New Tax Rate Area – To Be Assigned)

16.64% - Property Tax Available for Distribution

1. City of Gonzales’ Share of Total Property Taxes Collected:

16.64% - Property Tax Available for Distribution
X 52.15% - City of Gonzales’ Current Ratio
= 8.68%
+ 01.5% - Fire District Share
= 10.18%

2. Monterey County’s Share of Total Property Taxes Collected:

16.64% - Property Tax Available for Distribution
X 47.85% - Monterey County’s Current Ratio
= 7.96%
plus

11.08% - The Adjustment for State Tax Shift
= 19.04%
Formula for property tax base allocation to the City of Gonzales from tax rate area 076-001 after change of organization/reorganization.

City of Gonzales’ Property Tax Revenue =
Total Property Taxes Collected X 10.18% X
Full Months Remaining in Tax Year Divided by 12.
60 B. DISTRIBUTION OF PROPERTY TAX INCREMENT:

Property tax increment is the increase in property tax revenue above the base resulting from the increase in assessed value of property after the change in organization/reorganization.

The formula recognizes that all future growth will be subject to a shift to ERAF in the amount of 40% for the County and 12% for the City. After the shift, the County and the City will be in the same relative position as before dividing the remainder.

Prior to Change of Organization/Reorganization:
(City of Gonzales, Tax Rate Area 007-005)
Current
Rate
÷ ERAF
Adjustment
= Resulting
Rate
Resulting
Ratio
City of Gonzales 15.25% 88% 17.33% 42.65%
Monterey County 13.98% 60.0% 23.30% 57.35%
Based on existing Tax Rate Area 126-011, Monterey County’s share of property tax is 27.72%. The total property available for distribution in the proposal area is 27.72%. The new Resulting Ratio calculated above are applied to the increment.

After Change of Organization/Reorganization
(New Tax Rate Area to be Assigned)

27.72% = Property Tax Available for Distribution

1. City of Gonzales’ Share of Property Tax Increment:

27.72% - Property Tax Available for Distribution
X 42.65% - City of Gonzales’ New Resulting Ratio
= 11.82% -
+ 01.5% - Fire District Share
= 13.32%

2. Monterey County’s Share of Property Tax Increment:

27.72% - Property Tax Available for Distribution
X 57.35% - Monterey County’s New Resulting Ratio
= 15.90%
Formula for property tax increment to the City of Gonzales from Tax Rate Area 076-001 after change of organization/reorganization:

City of Gonzales’ Property Tax Increment =
Total Property Tax Increment Collected X 13.32% X
Full Months Remaining in Tax Year Divided by 12.
61 PASSED AND ADOPTED this day of , 2026, by the following vote, to-wit:

AYES:

NOES:

ABSENT:

I, Valerie Ralph, Clerk of the Board of Supervisors of the County of Monterey, State of California, hereby certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered in the minutes thereof at page of Minute Book , on .

Dated:

VALERIE RALPH, Clerk of the Board of Supervisors, County of Monterey, State of California By
Deputy
62 CITY OF GONZALES
AGENDA
ITEM

5.10 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution 2026-51, A Resolution of the City Council of the City of Gonzales Certifying Compliance with State Law with Respect to the Levying of General and Special Taxes, Assessments, and Property Related Fees and Charges

FINANCE DEPARTMENT
ATTACHMENTS:

Resolution No. 2026-51
Exhibit A - Levying Special Taxes & Assessment for FY 26-27 Assessments for FY 2026-2027
63 RESOLUTION NO. 2026-51

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

CERTIFYING COMPLIANCE WITH STATE LAW WITH RESPECT TO THE

LEVYING OF GENERAL AND SPECIAL TAXES, ASSESSMENTS, AND PROPERTY

RELATED FEES AND CHARGES
WHEREAS, the City of Gonzales requests that the Monterey County Auditor-Controller enter those general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A” on the tax roll for collection and distribution by the Monterey County Treasurer-Tax Collector commencing with the property tax bills for fiscal year 2026-2027; and NOW, THEREFORE, BE IT RESOLVED as follows:

1. The City of Gonzales hereby certifies that it has, without limitation, complied with all legal procedures and requirements necessary for the levying and imposition of the general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A”, regardless of whether those procedures and requirements are set forth in the Constitution of the State of California, in State statues, or in the applicable decisional law of the State of California.

2. The City of Gonzales further certifies that, except for the sole negligence or misconduct of the County of Monterey, its officers, employees, and agents, the City of Gonzales shall be solely liable and responsible for defending, at its sole expense, cost, and risk, each and every action, suit, or other proceeding brought against the County of Monterey, its officers, employees, and agent for every claim, demand, or challenge to the levying or imposition of the general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A” and that it shall pay or satisfy any judgment rendered against the County of Monterey, its officers, employees, and agents on every such action, suit, or other proceeding, including all claims for refunds and interest thereon, legal fees and court costs, and administrative expenses of the County of Monterey to correct the tax rolls.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 17
th of August 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
64 EXHIBIT “A”

CERTIFYING COMPLIANCE WITH STATE LAW WITH RESPECT TO THE LEVYING OF

GENERAL AND SPECIAL TAXES, ASSESSMENTS, AND

PROPERTY-RELATED FEES AND CHARGES
FISCAL YEAR 2026-2027
GENERAL TAXES: NONE
SPECIAL TAXES: SEC ASSESSMENT FEE #87101 1

ST RESPONDER ENHANCED

EMERGENCY MEDICAL SERVICES
SPECIAL TAX TO TITLE 3 -

REVENUE AND FINANCE OF THE

GONZALES MUNICIPAL CODE
ASSESSMENTS: SEC ASSESSMENT BND #57300 CAL BREEZE PARKS AND OPEN SPACES MAINT. - PHASE I,II,III
SEC ASSESSMENT BND #57600 CAL BREEZE BENEFIT - PHASE I
SEC ASSESSMENT BND #57500 CAL BREEZE BENEFIT - PHASE II SEC ASSESSMENT BND #57700 CAL BREEZE BENEFIT - PHASE III SEC ASSESSMENT BND #57900 CANYON CREEK PARKS AND
OPEN SPACES MAINT. – PHASE I
SEC ASSESSMENT BND # 57000 CANYON CREEK PARKS AND
OPEN SPACES MAINT. – PHASE II
SEC ASSESSMENT BND #57002 CANYON CREEK PARKS AND
OPEN SPACES MAINT. – PHASE III
SEC ASSESSMENT BND #58000 CANYON CREEK BENEFIT- PHASE I SEC ASSESSMENT BND #57001 CANYON CREEK BENEFIT-PHASE II SEC ASSESSMENT BND #57003 CANYON CREEK BENEFIT-PHASE III SEC ASSESSMENT BND #57005 CIPRIANI ESTATES PARK AND

OPEN SPACES MAINTENANCE
SEC ASSESSMENT BND #57004 CIPRIANI ESTATES BENEFIT
SEC ASSESSMENT BND #57101 GONZALES INDUSTRIAL PARK

LANDSCAPE MAINTENANCE DISTRICT
SEC ASSESSMENT BND #57102 GONZALES INDUSTRIAL PARK

BENEFIT ASSESSMENT DISTRICT
65 City of Gonzales
Assessments for FY2026-2027
Tax Code Description FY 26-27
57000 Canyon Creek Landscape District II 74 $ 44,844.00 57001 Canyon Creek Benefit District II 74 $ 44,844.00
57002 Canyon Creek Landscape District III 78 $ 51,932.98 57003 Canyon Creek Benefit District III 78 $ 64,114.80
57004 Cipriani Estates Benefit District 71 $ 52,683.36
57005 Cipriani Estates Landscape District 71 $ 47,902.28 57101 Industrial Park Landscape District 15 $ 46,156.94 57102 Industrial Park Benefit District 15 $ 120,702.96
57300 CA Breeze Landscape District-I, II, III 319 $ 78,211.24 57500 CA Breeze Benefit District II 131 $ 24,279.54
57600 CA Breeze Benefit District I 74 $ 15,289.16
57700 CA Breeze Benefit District III 114 $ 26,753.52
57900 Canyon Creek Landscape District I 75 $ 45,450.00
58000 Canyon Creek Benefit District I 75 $ 45,450.00
87101 EMS Special Tax 1882 $ 12,122.50
Total $ 720,737.28
66 CITY OF GONZALES
AGENDA
ITEM

5.11 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-52, A Resolution of the City Council of the City of Gonzales Establishing the Appropriations Subject to Limit for the City of Gonzales for the 2026- 2027 Fiscal Year

FINANCE DEPARTMENT
ATTACHMENTS:

Resolution No. 2026-52
Exhibit A - GANN Appropriations
Exhibit B - Department of Finance Documentaion
67 RESOLUTION NO. 2026-52

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

ESTABLISHING THE APPROPRIATIONS SUBJECT TO LIMIT FOR THE CITY OF GONZALES FOR THE 2026-2027 FISCAL YEAR
WHEREAS, Section 37200 of the Government Code provides for the payment of demands based on the adoption of an annual budget; and
WHEREAS, the City Manager has presented a proposed budget to the City Council for the 2025-2026 fiscal year; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gonzales that:

1. In accordance with Section 2227 of the California Revenue & Taxation Code, the appropriations limit for the City of Gonzales for the 2026-2027 Fiscal Year, as set forth in Exhibits A & B, attached hereto, is $12,488,677.33.

2. Pursuant to Article XIIIB of the California Constitution, appropriations subject to limit for the 2026-2027, as set forth in Exhibit A, attached hereto, are $6,056,142.

3. The appropriation figures in the schedule attached hereto shall serve as the approved budget for the City of Gonzales for the 2026-2027 Fiscal Year, pursuant to Section 37200 of the Government Code of the State of California.

PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 17
th day of August 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose Rios The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
68 EXHIBIT [A]
FISCAL YEAR 2026-2027

APPROPRIATIONS LIMITATION
Article XIIIB of the California Constitution specifies that “Appropriations made by State and Local Governments may increase annually by a Factor comprised of the Change in Population combined either with the Change in California Per Capital Personal Income or the Local Assessment Roll due to Local Nonresidential Construction.” Per Capita Change 4.95% Converted to a Factor 1.0495
Population Change -0.17% Converted to a Factor 0.9983
Ratio of Change 1.0495 (x) 0.9983 (=) 1.0477
2025-2026 Appropriations Limit: $11,920,089.08
Factor 1.0477
2026-2027 Appropriations Limit: $12,488,677.33
The Amount subject to the Appropriations Limit is calculated as follows:
2026-2027 PROPOSED BUDGET
(1) Property Taxes $954,848
(2) Sales and Use Tax $3,205,318
(3) Utility Users Tax $362,000
(4) Business License Tax $100,000
(5) Transient Occupancy Tax $1,775
(6) Other Taxes:
- Real Estate Transfer Tax
- Homeowner’s Property Tax
Relief (HOPTR)
$1,885
(7) Interest (Prorated) $53,000
(8) Motor Vehicle In-Lieu Tax $1,377,316
Total Amount subject to Limitations $6,056,142
69 EXHIBIT [B]

CALIFORNIA

DEPARTMENT OF FINANCE
FISCAL YEAR 2026-2027

SUPPORTING DOCUMENTATION
70 May 1, 2026
Dear Fiscal Officer:

Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments.

Each local jurisdiction must use their percentage change in population factor for January 1, 2026, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2026–27. Attachment A provides the change in California’s per capita personal income and an example for utilizing the factors to calculate the 2026–27 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2026. Please note: The prior year’s city population estimates may be revised.

The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
/s Erika Li
Attachment
71 May 2026
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2026–27 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2026-27 4.95
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2026–27 appropriation limit.
2026–27:

Per Capita Cost of Living Change = 4.95 percent
Population Change = -0.14 percent
Per Capita Cost of Living converted to a ratio: 4.95 + 100 = 1.0495 100
Population converted to a ratio: -0.14 + 100 = 0.9986
100
Calculation of factor for FY 2026–27: 1.0495 x 0.9986 = 1.0480 72 About the Data
FISCAL YEAR 2026-27
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2025 to January 1, 2026, and Total Population January 1, 2026 City County Percent Change 25-26 Population Minus Exclusions 1-1-25 Population Minus Exclusions 1-1-26 Total Population 1-1-26 Monterey Monterey -0.17 24,127 24,087 27,504
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 73 CITY OF GONZALES
AGENDA
ITEM

5.12 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Mike Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Joint Resolution No. 2026-55, A Resolution of the City Council of the City of Gonzales/City Council as Board to the Successor Agency to the Gonzales Redevelopment Agency/Board of the Successor Housing Agency/Board of the Gonzales Electric Authority/Board of the Gonzales Municipal Electric Utility Approving a First Amendment to an Employment Agreement for City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director Services with Carmen Gil

CITY ATTORNEY

RECOMMENDATION
It is recommended that the City Council/Successor Agency Board/Successor Housing Agency Board/Electric Agency Board/Electric Utility Board consider and adopt Joint Resolution No. 2026-55, A Resolution of the City Council of the City of Gonzales/City Council as Board to the Successor Agency to the Gonzales Redevelopment Agency/Board of the Successor Housing Agency/Board of the Gonzales Electric Authority/Board of the Gonzales Municipal Electric UtilityApproving a FirstAmendment to an EmploymentAgreement for City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director Services with Carmen Gil.

BACKGROUND
In August of 2025, the City Council entered into a new two-year Employment Agreement with Carmen Gil (“Gil”) for City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director services. (In Gonzales, the City Manager also serves as the Director of the Successor Agency Board to the Gonzales Redevelopment Agency, the Director of the Successor Housing Agency, and the Executive Director of both the Electric Authority and Electric Utility.) In accordance with Section 9 of the Agreement, the Council completed an evaluation of Gil’s performance on August 3, 2026, and considered proposed modifications to her EmploymentAgreement. 74 REVIEWAND ANALYSIS
After due deliberation, the City Council directed Staff to prepare a First Amendment to Gil’s Employment Agreement. Changes include a salary increase, based on the CPI, an extended term of two years to the existing twoyear term, increased severance pay in the event of a separation of employment, an increased car allowance, and additional administrative leave. The Amendment will be retroactive to June 1, 2026. The Amendment is before the City Council this evening for approval.

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

Explain: City Manager Gil has displayed suitable skills to ensure that the City’s vision and mission will remain on track.

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 City Manager will continue to help the Council and Staff achieve their vision by overseeing programs, decision-making and securing necessary financing for goals and operations.

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: The City Manager will ensure that City services continue to be delivered in a cost-effective and efficient manner.

Strong fiscal policies allow us to provide appropriate infrastructure for:

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

ALTERNATIVES
Adopt the proposed resolution approving the City Manager’s EmploymentAgreementAmendment.

Do not adopt the proposed resolution and provide staff with direction.

BUDGET IMPACT
The new salary for the City Manager’s combined positions has been set at $222,095 annually. Funding for the position comes primarily from the General Fund, with a portion of compensation coming from various other City and Agency funds.
75 CONCLUSION
It is recommended that the City Council/Successor Agency Board/Successor Housing Agency Board/Electric Agency Board/Electric Utility Board consider and adopt Joint Resolution No. 2026-55, A Resolution of the City Council of the City of Gonzales/City Council as Board to the Successor Agency to the Gonzales Redevelopment Agency/Board of the Successor Housing Agency/Board of the Gonzales Electric Authority/Board of the Gonzales Municipal Electric UtilityApproving a FirstAmendment to an EmploymentAgreement for City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director Services with Carmen Gil.

ATTACHMENTS:

Joint Resolution No. 2026-55 with First Amendment
76

JOINT RESOLUTION NO. 2026-55

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

COUNCIL AS BOARD TO THE SUCCESSOR AGENCY TO THE GONZALES

REDEVELOPMENT AGENCY/BOARD OF THE GONZALES SUCCESSOR HOUSING

AGENCY/BOARD OF THE GONZALES ELECTRIC AUTHORITY/BOARD OF THE

GONZALES MUNICIPAL ELECTRIC UTILITY APPROVING A FIRST AMENDMENT

TO EMPLOYMENT AGREEMENT FOR CITY MANAGER/SUCCESSOR AGENCY

DIRECTOR/SUCCESSOR HOUSING AGENCY EXECUTIVE DIRECTOR/ELECTRIC

AUTHORITY EXECUTIVE DIRECTOR/ELECTRIC UTILITY EXECUTIVE

DIRECTOR SERVICES WITH CARMEN GIL
WHEREAS, after a thorough vetting of its options, in June of 2023 the Council directed and engaged in negotiations with its selected candidate, Community Engagement and Strategic Partnerships Director Carmen Gil (“Gil”), and thereafter entered into an Employment Agreement with Gil for the City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director positions; and WHEREAS, after the successful completion of the term of said Agreement, Gil, the City, and affiliated City entities entered into a new two-year Employment Agreement with Gil for City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director services positions, with an effective date of June 1, 2025; and
WHEREAS, after completion of Gil’s performance evaluation for Fiscal Year 2025- 2026 on August 3, 2026, City and Gil wish to modify various provisions of her current Employment Agreement via a “First Amendment to Employment Agreement” (“Amendment”).

NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Gonzales, the City Council as the Board of the City of Gonzales as Successor Agency to the Gonzales Redevelopment Agency, the Board of the Gonzales Successor Housing Agency, the Board of the Gonzales Electric Authority and the Board of the Gonzales Municipal Electric Authority, that the “First Amendment to Employment Agreement” between said entities and Carmen Gil, a copy of which is attached hereto as Exhibit “A” and by this reference incorporated herein, is hereby approved. The Mayor/Chair/Chair/President/President is hereby authorized to execute said Amendment on behalf of the City/Successor Agency/Successor Housing Agency/Electric Authority/Electric Utility.

BE IT FURTHER RESOLVED that Staff is hereby directed to place an executed copy of the Amendment in Ms. Gil’s personnel file.

PASSED AND ADOPTED by the City Council/City Council Acting as Successor Agency Board of the Gonzales Redevelopment Agency/Board of the Gonzales Successor Housing Agency/Board of the Gonzales Electric Authority/Board of the Gonzales Municipal Electric Utility at a regular meeting held on the 17th of August, 2026, by the following vote:
77

AYES, and in favor thereof, Council Members/Successor Agency Board Members/Successor Housing Agency Board Members/Electric Authority Board Members/Electric Utility Board Members:

NOES, Council Members/Successor Agency Board Members/Successor Housing Agency Board Members/Electric Authority Board Members/Electric Utility Board Members:

ABSTAIN, Council Members/Successor Agency Members/Successor Housing Agency Board Members/Electric Authority Board Members/Electric Utility Board Members:

ABSENT, Council Members/Successor Agency Board Members/Successor Housing Agency Board Members/Electric Authority Board Members/Electric Utility Board Members:
______________________________________
Jose L. Rios, Mayor/Chairperson/Chairperson
President/President
ATTEST:
_______________________________________
Mary Villegas, City/Agency/Agency/Authority/
Utility/Deputy Clerk
78 1

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

CITY MANAGER/SUCCESSOR AGENCY DIRECTOR/SUCCESSOR HOUSING

AGENCY EXECUTIVE DIRECTOR/GONZALES ELECTRIC AUTHORITY

EXECUTIVE DIRECTOR/GONZALES MUNICIPAL ELECTRIC UTILITY

EXECUTIVE DIRECTOR
This First Amendment to Employment Agreement is made between the City of Gonzales/City of Gonzales as the Successor Agency to the Gonzales Redevelopment Agency/Gonzales Successor Housing Agency/Gonzales Electric Authority/Gonzales Municipal Electric Authority, hereinafter collectively referred to as “EMPLOYER,” and Carmen Gil, hereinafter called “Gil.”

RECITALS
A. EMPLOYER and Gil entered into an “Employment Agreement” in August of 2025, retroactive to June 1, 2025, for Gil’s service as City Manager/Successor Agency Director/Successor Housing Agency Executive Director/Electric Authority Executive Director/Electric Utility Executive Director.

B. In accordance with Section 9 of the Agreement, the Council completed an evaluation of Gil’s performance on August 3, 2026, and considered proposed modifications to her Employment Agreement.

C. The Parties now wish to enter into a First Amendment memorializing all changes to Gil’s Employment Agreement.

COMES NOW EMPLOYER and GIL and agree as follows:

1. The first sentence in Section 2. Term of the agreement is deleted in its entirety and shall be replaced with the following sentence:
“The term of this Agreement shall commence on June 1, 2025, and shall continue for a term of four (4) years, until June 1, 2029, or until terminated as set forth in Paragraph 13.”

2. The first sentence in Section 4 Salary and Benefits, Subsection A ,is deleted in its entirety and shall be replaced with the following sentence:
“For all services to be rendered by Gil under this Agreement, EMPLOYER shall pay Gil Two-Hundred and Twenty-Two Thousand and Ninety-Five Dollars ($222,095.00) per year.”

3. In Section 6. Vacation-Sick Leave-Administrative Compensatory Time-OffGeneral Leave, the amount of administrative leave provided to Gil is changed from “forty (40) hours per year” to “eighty (80) hours per year.”

EXHIBIT A
79 2

4. In Section 7. Auto Allowance, the first paragraph is deleted in its entirety and replaced with the following:
“The City agrees to pay Gil a monthly auto allowance of Three Hundred Dollars ($300.00). Gil shall also continue to have the use of a City-owned automobile for her professional use. With the exceptions noted below, personal use of the City Automobile is not allowed. The City Automobile shall also not be used to transport family members, friends or other persons not involved in the conduct of EMPLOYERS’s business. Exceptions to this policy are as follows:”

5. Section 13. Termination, subsection iv. is changed from “four (4) months as severance” to “six (6) months as severance” after termination without cause. Additionally, the last sentence in this subsection is deleted in its entirety.

This First Amendment memorializes any and all changes to Gil’s Employment Agreement after completion of the 2026 annual evaluation and negotiation process set forth therein. Unless otherwise noted herein, all other terms and conditions of said Employment Agreement shall continue unchanged, and in full force and effect. A copy of this Amendment shall be appended to Gil’s original Employment Agreement By
Carmen Gil

CITY OF GONZALES
By
Jose L. Rios, Mayor

CITY OF GONZALES AS SUCCESSOR AGENCY TO THE GONZALES

REDEVELOPMENT AGENCY
By
Jose L. Rios, Chair
80 3

CITY OF GONZALES SUCCESSOR HOUSING AGENCY
By
Jose L. Rios, Chair

CITY OF GONZALES ELECTRIC AUTHORITY
By
Jose L. Rios, President

CITY OF GONZALES MUNICIPAL ELECTRIC UTILITY
By
Jose L. Rios, President
ATTEST:

By
Mary Villegas, Deputy City Clerk
APPROVED AS TO FORM:

By
Michael F. Rodriquez, City Attorney
81 CITY OF GONZALES
AGENDA
ITEM

6.1 STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 17, 2026
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-53, A Resolution of the City Council of the City of Gonzales Adopting an Operating Budget for the City for the Fiscal Year July 1, 2026, through June 30, 2027, Providing for the Appropriations and Expenditures of All Sums Set Forth Therein; and Resolution SA-2026-03, A Resolution of the City Council of the City of Gonzales Acting as Successor Agency for the Gonzales Redevelopment Agency Approving and Adopting a Successor Agency Budget for the Period Between July 1, 2026, and June 30, 2027
Staff Report
Public Comment
Council Discussion
Council Action

CITY MANAGER

RECOMMENDATION
It is recommended that your Council and SuccessorAgency Board:

Consider and Adopt Resolution No. 2026-53, A Resolution of the City Council of the City of Gonzales Adopting an Operating Budget for the City for the Fiscal Year July 1, 2026, through June 30, 2027, providing for theAppropriations and Expenditures ofAll Sums Set Forth Therein; Consider and Adopt Resolution SA-2026-03, A Resolution of the City Council of the City of Gonzales Acting as Successor Agency for the Gonzales Redevelopment Agency Approving and Adopting a Successor Agency Budget for the Period Between July 1, 2026, and June 30, 2027; As included in the 2026-2027 Recommended Budget, Approve the Position Allocation and the Salary Schedule of the City Classification and Compensation Plan; As included in the 2026-2027 Recommended Budget, Affirm the City’s Reserve (Fund) Balances for all Funds;
Authorize the City Manager to Realign the Budget for Fiscal Year 2025-2026 to Reflect the Actual Revenues and Expenditures for the 2025-2026 FiscalYear; and
If needed, direct staff to make changes as necessary.
82 BACKGROUND
The annual adoption of the City Budget is an important step in order to establish the fiscal road map for the new fiscal year. The budget conveys to everyone what the spending priorities of the City are for the fiscal year. This staff put the budget together with help from Andy Heath from Andy Heath Financial Services. His experience and expertise were instrumental in helping to prepare this document. The proposed budget is consistent with council priorities while assuring ongoing sustainability of all city-wide funds. Further, the development of this document includes updates and analysis of all funds while continuing to incorporate policy considerations implemented with the FY 2025-26 Budget development. A synopsis of the major funds and fund groups in the FY 2026-27 Proposed Budget is provided below.

REVIEWAND ANALYSIS
The Recommended City and Successor Agency Budget for FY 2026-2027 is balanced, and as is mentioned in the FY 2026-2027 Budget Message, the Recommended Budget sets forth a total Budget of $38.3 million. Of this, the General Fund appropriations are $8,139,692 or 22% of the total budget. This budget reflects the completion of the Dennis and Janice Caprara Community Center Complex and the advancement of the Industrial Wastewater Treatment Facility as well as the work on the Vista Lucia housing project. It reflects increases in workers’ compensation, the 911 call system, needed equipment replacement and increased liability insurance costs, as well as funding for cost-of-living-adjustments for all employees and a higher dependence on Measure K for services resulting in some decreases in program offerings.

While the FY 2026-2027 is balanced, it will continue to require cost containment throughout the fiscal year and the City will still need to also look for new revenue streams to support the ongoing staffing and services currently provided.

On the capital infrastructure side, the Recommended Budget reflects funds for the completion of the Industrial Wastewater Treatment Facility expansion and rehabilitation project and the completion of several street and road projects including the Fourth St. Truck Ban and the re-pavement of Fourth St. and Fifth St., Ricon Rd. and Alta minor.

The Recommended Budget also maintains emphasis on the City’s youth initiatives, but cost is offset with the support of the Boys and Girls Club and the recent $2 million dollar donation for their operations in Gonzales.

NOTE: Please refer to the FY 2026-2027 City and SuccessorAgency Recommended Budget document for a more detailed look at the City’s Budget.

In addition, while included in the Recommended Budget, the recommended actions call out (a) approving the Position Allocations and the Salary Schedule of the City Classification and Compensation Plan and (b) affirming the City’s Reserve (Fund) Balances for all funds.

General Fund include;

1. Maintaining the “Status Quo” with an emphasis on cost containment.

Other Funds include;

1. Changes in both the Water and Sewer Enterprise Funds are driven by actual and expected activity.

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. 83 Explain: Obtaining approval and/or policy direction on the Recommended Budget is important because it allows staff to obtain the necessary policy direction to maintain a healthy financial position for the City and continue the work on a sustainable long-term budget. A sustainable long-term budget is important because it assures the financial health of the City is maintained, which is necessary to ensure a safe, clean, and family-friendly community.

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 __ NA
Explain: Please see Vision above.

Strong fiscal policies allow us to provide appropriate infrastructure for:

Public Safety X Yes __ No __ N/A
Housing X Yes __ No __ N/A
Recreation X Yes __ No __ N/A
Environment X Yes __ No __ N/A
Education X Yes __ No __ N/A
Explain: Please see explanation above.

ALTERNATIVES
Alternatives include directing staff to modify and/or change the FY 2026-2027 Recommended City and/or Successor Agency Budget.

BUDGET IMPACT
Please refer to the FY 2026-2027 Recommended City and Successor Agency Budget. In addition, based on the direction received from Council, the budget impacts may change, and will ultimately be reflected in the approved budget.

CONCLUSION
I would like to take this opportunity to express my appreciation to all City staff and Michael Rodriguez (City Attorney), whose dedicated service, cooperation, and commitment to excellent Public Service “Gonzales Way” make all the programs, initiatives, and services funded in the FY 2026-2027 Recommended Budget a possibility. In particular, I would like to acknowledge Mrs. Mary Villegas, Celia Firme for her amazing work and help putting together this document and Consultant Andy Heath, whose experience and expertise was critical in establishing this document.

It is recommended that your Council and SuccessorAgency Board:

Consider and Adopt Resolution No. 2026-53, A Resolution of the City Council of the City of Gonzales Adopting an Operating Budget for the City for the Fiscal Year July 1, 2026, through June 30, 2027, providing for theAppropriations and Expenditures ofAll Sums Set Forth Therein; Consider andAdopt Resolution SA-2026-03,A Resolution of the City Council of the City of GonzalesActing as Successor Agency for the Gonzales Redevelopment Agency Approving and Adopting a Successor Agency Budget for the Period Between July 1, 2026, and June 30, 2027; 84 As included in the 2026-2027 Recommended Budget, Approve the Position Allocation and the Salary Schedule of the City Classification and Compensation Plan; As included in the 2026-2027 Recommended Budget, Affirm the City’s Reserve (Fund) Balances for all Funds;
Authorize the City Manager to Realign the Budget for Fiscal Year 2025-2026 to Reflect the Actual Revenues and Expenditures for the 2025-2026 FiscalYear; and
If needed, direct staff to make changes as necessary.

ATTACHMENTS:

Resolution No. 2026-53
Resolution No. SA-2026-03
FY 2026-2027 Recommended Budget
85 RESOLUTION NO. 2026-53

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES ADOPTING AN OPERATING BUDGET FOR THE CITY FOR THE FISCAL YEAR JULY 1, 2026, THROUGH JUNE 30, 2027, AND PROVIDING FOR THE APPROPRIATIONS AND EXPENDITURES OF

ALL SUMS SET FORTH THEREIN

RECITALS
WHEREAS, the City Manager has submitted to the City Council of Gonzales a Fiscal Year 2026- 2027 Recommended Budget; and
WHEREAS, after conducting a public hearing on the proposed budget, the City Council has approved the same; and
WHEREAS, it is the intention of the Council to adopt the proposed budget as submitted by the City Manager and Finance Director; and

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

1. That certain document referred to as “The Fiscal Year 2026-2027 City and Successor Agency Recommended Budget” presented by the City Manager is hereby adopted and the appropriations for the annual budget of the City of Gonzales for the fiscal year beginning on July 1, 2026, and ending on June 30, 2027, is hereby adopted; and

2. That the amounts stated in the proposed budget shall become and thereafter be appropriated to the offices, departments, activities, objects, and purposes stated therein and said monies are hereby authorized to be expended for the purposes and objects specified in said budget;

3. The City Manager is authorized to approve expenditure adjustments within individual funds so long as the total appropriated within each major fund is not exceeded;

4. Approve the Position Allocation and the Salary Schedule of the City Classification and Compensation Plan Included in the Fiscal Year 2026-2027 Recommended Budget; and

5. Affirm the City’s Reserve (Fund) Balances for all Funds reflected in the Fiscal Year 2026-2027 Recommended Budget;

6. Authorize the City Manager and Finance Manager to Realign the Budget for Fiscal Year 2025- 2026 to Reflect the Actual Revenues and Expenditures for the 2025-2026 Fiscal Year; PASSED AND ADOPTED by the City Council of the City of Gonzales on the 17 th day of August
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
86

RESOLUTION NO. SA-2026-03

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES ACTING

AS SUCCESSOR AGENCY FOR THE GONZALES REDEVELOPMENT AGENCY

APPROVING AND ADOPTING A SUCCESSOR AGENCY BUDGET FOR THE PERIOD BETWEEN JULY 1, 2026 AND JUNE 30, 2027
WHEREAS, the City of Gonzales is the designated Successor Agency of the Gonzales Redevelopment Agency within the meaning of AB 26; and
WHEREAS, the City of Gonzales, acting as Successor Agency for the Gonzales Redevelopment Agency (“Successor Agency”) has adopted, and the Oversight Board has approved, the Successor Agency ROPS, which identifies Successor Agency enforceable obligations and administrative expenses, for the period between July 1, 2026 through June 30, 2027; and
WHEREAS, Section 34177(j) of the California Health and Safety Code provides that the Successor Agency shall prepare an administrative budget (Administrative Budget”) and submit the same to the Oversight Board of the Successor Agency for its approval: and WHEREAS, the Administrative Budget shall include the following:
(1) Estimated amounts for successor agency administrative costs for the upcoming sixmonth fiscal period; and (2) Proposed sources of payment for the costs identified in subparagraph (1); and (3) Proposals for arrangements for administrative and operations services provided by a city, county, city and county, or other entity; and
WHEREAS, Section 34177(k) of the California Health and Safety Code requires the Successor Agency to provide administrative cost estimates, from its approved Administrative Budget, that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the Monterey County Auditor-Controller for each six-month fiscal period; and
WHEREAS, the Successor Agency Director has submitted to the Successor Agency Board a Fiscal Year 2026-2027 Recommended Budget that incorporates an Administrative Budget (based on disclosures in the afore-referenced July-June. ROPS) as well as a budget for all Successor Agency operations, including but not limited to payment of enforceable obligations and asset disposition efforts, for said Fiscal Year; and WHEREAS, the Successor Agency has reviewed and duly considered the Recommended Budget, and other written evidence presented at the meeting; and WHEREAS, the Successor Agency Board, after receipt of public comment and discussion, as offered or needed, to adopt the proposed budget as submitted by the Successor Agency Director; and
87

WHEREAS, under Title 14 of the California Code of Regulations, Section 15061(b)(3), the approval of the Budget is exempt from the requirements of the California Environmental Quality Act, in that it is a not a project as the adoption of the Budget will not have the potential of causing a significant environmental effect and it can be seen with certainty that there is no possibility that the adoption of the Budget will have any significant effect on the environment.

NOW THEREFORE, be it hereby resolved by the Successor Agency as follows:

Section 1. The Successor Agency hereby finds and determines that the recitals set forth above are true and correct to the best of its knowledge, and by this reference, are incorporated herein.

Section 2. That certain document referred to as “The Fiscal Year 2026-2027 Successor Agency Recommended Budget” presented by the Successor Agency Director is hereby adopted and the appropriations for the annual budget of the Successor Agency for the Fiscal Year beginning on July 1, 2026 and ending on June 30, 2027, are hereby approved.

Section 3. The Successor Agency authorizes the Executive Officer to:
(1) Take such other actions and execute such other documents as are appropriate to effectuate the intent of this Resolution and to implement the Budget on behalf of the Successor Agency.

PASSED AND ADOPTED by the City Council of the City of Gonzales acting as the Successor Agency Board for the Gonzales Redevelopment Agency on the 17 th day of June 2026,
by the following vote:

AYES: SUCCESSOR AGENCY MEMBERS:

NOES: SUCCESSOR AGENCY MEMBERS:

ABSTAIN: SUCCESSOR AGENCY MEMBERS:

ABSENT: SUCCESSOR AGENCY MEMBERS:
__________________________________
Jose L. Rios, The Honorable Chair
ATTEST:

Mary Villegas, Agency Deputy Secretary
88 Small town,big heart! ~ ¡Pueblo chico, corazóngrande! 147 Fourth Street · PO Box 647, Gonzales, CA 93926· Phone: (831) 675-5000· Fax: (831)288-8853 https://gonzalesca.gov/ 1
City of Gonzales
Council Member Scott Funk, Council Member Lorraine Worthy, Council MemberMaria Orozco Mayor Jose L. Rios, Mayor Pro Tem Liz Silva, City Manager Carmen Gil August 17, 2026
Honorable Mayor Rios and Council Members
Chairperson Rios and Successor Agency Board Members
Chairperson Rios and Gonzales Municipal Electric Authority P.O. Box 647
Gonzales, California 93926
Dear Council and Board Members:

I present to your Council and Board the Recommended Budget for FY 2026-2027. It goes without saying that our City of Gonzales continues to embody our motto of Love, Care and Connect. In FY 2025- 2026, we hit major milestones in our infrastructure that have prepared the City for its future. The brandnew Dennis and Janice Caprara Community Center Complex was completed in December of 2025, and its grand opening was held on January 10, 2026. A highlight for so many that spent years dreaming about a community hub that would serve the needs of the local community and provide a safe space for learning and development. It is now programmed through partnerships and is home to the Boys and Girls Club of Monterey County for the next four years, made possible through a generous donor’s gift of $2 million dollars. The center has now hosted major events like the Coastal Commission meeting and the South County Rotary Valley Nights, and is a major pride point for Gonzales residents. To date, it has received two awards, one from the Monterey Bay Chapter of the American Public Works Association for Project of the Year and one from the Northern California Chapter of the Construction Management American Association for Project Achievement.

After securing the State Revolving Fund (SRF) loan of $34,884,000 we celebrated the groundbreaking of the new Industrial Wastewater Treatment Facility in July of 2025, A project that once complete in Spring of 2027, will help enhance our capacity to support local business expansion and will support the development of the much-needed housing projects on the horizon. The Vista Lucia housing project continues to advance. The City Council approved the project, and the application for annexation was submitted to the Local Agency Formation Commission on March 26, 2026, it is currently under their review, and we expect to be called to hearings in the next few months. Puente Del Monte is now in the environmental review stages and is also progressing well.

In FY 2025-2026, the Electronic Billboard broke ground and was operational by the end of February 2026, adding a beautiful landmark to the community and generating admiration from surrounding communities due to its innovation and beauty. It provides a great communication tool for the area and allows us to capture a bit of unrestricted revenue to support our operations.

Staff and I continue to work hard to reduce costs, create efficiencies and recover costs wherever possible. We have worked to clean up systems and implement effective cost recovery programs that are allowing us to capture much needed funding. Moreover, a conservative approach is driving the budget as operating costs continue to climb.
89 2
In FY 2025-2026, the City experienced major transition in key positions. However, dedicated staff members stepped in to ensure that operations continued to run seamlessly. Being mindful of staff’s capacity and workload to prevent burnout, is imperative to ensure they continue their tenure with us; staff must be recognized and valued for their efforts and is encouraged and supported to take self-care precautions so that they can continue to give their best to the City of Gonzales.

Overall, revenues are projected to be $38.3 million, a 16.8% increase from FY 2025-2026; of that, the General Fund appropriations total $8,139,692, an increase of 9.6% from FY 2025-2026. This is due to escalating costs to worker’s compensation and liability insurance, as well as the employee and management salaries and benefits, increases to the County Communications 911 System, and insurance for the new Center, as well as some needed equipment replacement. Adjustments have been made to programming and services to balance out the budget.

The FY 2026-2027 budget continues to reflect the Council’s priorities. For example, it funds all authorized positions, maintains core operations, and it supports the continuation of our major projects like the Dennis and Janice Caprara Community Center Complex, the expansion of the Industrial Wastewater Facility, and our efforts to expand the local housing stock through multiple streams including the Surplus Land Act process, which is being conducted on multiple proprieties in town 1) to bring in revenue, and 2) to jumpstart housing. It puts the “Truck Ban” in place and kicks off other road and street repair projects. Furthermore, as your Council reviews the budget document, please keep in mind that our general fund balance continues to be tight and thus a conservative approach to spending is imperative.

Finally, I would like to take this opportunity to express my gratitude and appreciation to all my staff for working tirelessly throughout the year to ensure that City operations continued to function seamlessly; to Andy Heath, our Financial Consultant, who came in at the tail end of budget season and whose expertise and knowledge helped us put this budget document together; to Celia Firme, who without hesitation, stepped in to help me maintain our fiscal operations upon Mike Howard’s departure; to Michael Rodriquez, City Attorney, who has been a great partner and has provided invaluable advice to all departments throughout the year; to Mrs. Mary Villegas, for her tireless hard work; and to the entire team of the City of Gonzales for their continued dedication and commitment to our community.

Respectfully submitted,
Carmen Gil, MPA
City Manager
90 City of Gonzales
FY 2026-2027
City Council/
Successor Agency
(5)
Finance Director
(Contracted)
Community
Development
Director
Building Official
(Contracted)
Dev. Services
Technician/Admin Analyst
(1)
Public Works
Director/City Engineer
Admin
Assistant II
(1) Public Works
Intern
(1)
Public Works
Supervisor
Vacant (1)
Fire Chief
Volunteers
(3)
Captains
(3) Firefighters
(3)
Police Chief
Captain
Vacant (1)
Police Services
Technician
(1)
Sergeants
(2)
Corporals
(2)
Officers (6)
Vacant (3)
Police Officer
Recruit
(2)
Executive Asst./
Records Supervisor
(1)
Community Engagement
Director
(Vacant)
Interns

CSUMB/HCC
(1)
Recreation
Coordinator/
Admin Analyst
(1)
Sports and Senior
Programs
Coordinator
(1)
Youth Programs
Coordinator
(1)
City Manager/
Executive Director
City Attorney
Lifeguards/Rec
Aides
(Part-time)
Kid Power/
Summer
Camp
(Part-time)
Admin
Assistant II
(1)
Executive Asst. to the
CM/Deputy City Clerk
Lead Worker (1)
Technician
(1)
Mechanic
(1)
Maintenance Workers
(6)
Admin Assistant II
(1/2)
Senior
Accounting
Technician
(1)
Admin
Assistant II
(1/2)
91 92
93 94
95 CITY OF GONZALES
FISCAL YEAR 2026-2027 PROPOSED BUDGET SCHEDULES
AUGUST 17, 2026
96 97
98 99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320