Gridley City Council
April 15, 2024

GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 4-15-24 Page 1 of 3 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.” The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on April 15, 2024, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.

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CALL TO ORDER - Mayor Farr

ROLL CALL
PLEDGE OF ALLEGIANCE – Councilmember Roberts
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES - None
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.

CONSENT AGENDA

1. City Council Minutes Dated March 4, 2024 (amended), March 18 (special meeting) and March 18 (regular meeting), 2024
Gridley City Council – Regular Meeting Agenda
Monday, April 15, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 4-15-24 Page 2 of 3

2. Ordinance No. 849-2024: Second Reading and Adoption by Title Only of Ordinance 849- 2024 to add the Agricultural Overlay District Zoning Designation Allowing Commercial Agricultural Production Until the Residentially Zoned Property is Developed. The Site Has a General Plan Land Use Designation of Residential and an Underlying Zoning Designation of Single-Family Residential District (R-1). The Property Is Located on the East Side of West Biggs Gridley Road, North and Contiguous to the Heron Landing Subdivision (APN 022-210- 092)

3. Resolution No. 2024-R-009: A Resolution of the City of Gridley Authorizing the Purchase of 3-Phase Transformers and Appropriating Supplemental Funds (Purchase Approved at the March 18, 2024, Regular Council Meeting)

4. RSG Contract Amendment FY 23/24

ITEMS FOR CONSIDERATION

5. Butte Subbasin Groundwater Sustainability Agency Second Amendment to Cooperation Agreement

6. Amendment of Eide Bailly’s FY 23/24 Contract and Approval for FY 24/25 and FY 25/26 Contract

7. Code Enforcement and Abatement of Nuisance Property
CITY STAFF AND COUNCIL COMMITTEE REPORTS - Brief updates from City staff and brief reports on conferences, seminars, and meetings attended by the Mayor and City Council members, if any.

CITY ADMINISTRATOR REPORTS - Brief updates and reports on conferences, seminars, and meetings attended by the City Administrator, if any.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Gridley Unified School District Land Dedication (Laurel Street) 5/6/2024 Utility Write Offs 5/6/2024
Procurement Policy 5/6/2024
Accounting Services RFP 5/6/2024
Utility Write Offs 5/6/2024
Caltrans SHOPP Presentation 5/6/2024

CLOSED SESSION

8. Closed Session Conference with Labor Negotiators Pursuant to Government Code 54957.6 Concerning Management MOU Contract and Benefits
ADJOURNMENT – adjourning to a Regular meeting on May 6th, 2024.

NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., April 12th, 2024. This agenda along with all attachments is available for public GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 4-15-24 Page 3 of 3 viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.

NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-4-24 Page 1 of 4 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”

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

ROLL CALL
Councilmembers

Present: Farr, Roberts, Sanchez, Calderon, Johnson

Absent: None
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Rodney Harr, Police Chief
Tony Galyean, City Attorney
Ross Pippitt, Utility Director
Martin Pineda, Finance Director

PLEDGE OF ALLEGIANCE
Councilmember Sanchez led the Pledge of Allegiance.

PROCLAMATION – None

INTRODUCTION OF NEW OR PROMOTED EMPLOYEES
Chief of Police Rodney Harr recognized Code Enforcement Officer Katie Hill for completing the necessary training and becoming a certified Code Enforcement Officer.

COMMUNITY PARTICIPATION FORUM
The forum was opened, and seeing no one was present to speak, was closed.

CONSENT AGENDA

1. City Council Minutes Dated February 20, 2024

2. Updated Cal-Card Policy
Gridley City Council – Regular Meeting Minutes (Amended) Monday, March 4, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-4-24 Page 2 of 4

3. Escheatment Policy
Motion: to approve consent agenda as presented.

MOTION: Calderon
SECOND: Roberts
ROLL CALL VOTE: 5-0
Ayes: Calderon, Johnson, Roberts, Sanchez, Farr

ITEMS FOR CONSIDERATION

4. Conduct a Public Hearing Regarding Solid Waste Rate Adjustments City Administrator Arteaga addressed Council regarding the proposed increase that was tentatively approved at the December 18th regular meeting pending that all Prop 218 noticing requirements be met without a majority vote against the rate adjustments. The City received zero written protests against the rate adjustments. City Administrator Arteaga respectfully requested that Resolution 2024-R-007 be adopted, approving the proposed rate change.

Vice Mayor Johnson had concerns about who will be responsible for the regular billing and collection of funds. City Administrator Arteaga confirmed that Waste Management will continue to do their own billing and collection of fees.

Motion: to approve resolution 2024-R-007, approving the solid waste rate adjustments with Waste Management.

MOTION: Calderon
SECOND: Sanchez
ROLL CALL VOTE: 5-0
Ayes: Calderon, Johnson, Roberts, Sanchez, Farr

5. Award of Contract to Commercial Pump and Mechanical (CPM) for Liberty Well Repairs Utility Director Ross Pippitt presented the staff report explaining the breakdown that occurred in January at the Liberty Well. Pippitt explained that this well has historically been one of the more reliable wells and deemed it an emergency once it was compromised. Pippitt respectfully requested the proposal from CPM to complete the repair.

Mayor Farr shared his concerns about how young the well is.

Motion: to approve the CPM contract.

MOTION: Johnson
SECOND: Roberts
ROLL CALL VOTE: 5-0
Ayes: Calderon, Johnson, Roberts, Sanchez, Farr
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-4-24 Page 3 of 4

6. Concrete Removal on Electric Department Property at 57 E Gridley Rd.

Utility Director Ross Pippitt presented the three proposals to Council and recommended the award of contract be rewarded to the lowest bidder, Kegan Waite.

Motion: approve the award of contract to Kegan Waite.

MOTION: Roberts
SECOND: Calderon
ROLL CALL VOTE: 5-0
Ayes: Calderon, Johnson, Roberts, Sanchez, Farr

CITY STAFF AND COUNCIL COMMITTEE REPORTS
Councilmember Calderon reported on his attendance at the Behavioral Health Advisory Board meeting and Butte County Air Quality Management meeting.

CITY ADMINISTRATOR REPORTS
City Administrator Arteaga informed Council of her recent meetings with multiple local agencies.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Gridley Unified School District Land Dedication (Laurel Street) 3/18/2024 Utility Write Offs 3/18/2024
Fire - Calendar Year End 3/18/2024
Second Amendment to Cooperation Agreement - Groundwater Sustainability Agencies in the Butte Subbasin 3/18/2024
Chandler Subdivision 3/18/2024
CalTrans Presentation of Highway 99 Project 3/18/2024

CLOSED SESSION
Council went into closed session at 7:00 pm.

7. Closed session discussion with legal counsel pursuant to Government Code 54957.8: Case Review/Planning, 1 matter
No reportable action for item #7.

8. Closed Session discussion with City Administrator Elisa Arteaga pursuant to Government Code 54957 – PUBLIC EMPLOYEE APPOINTMENT – Gridley Police Department, Sworn Peace Officer Position
GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-4-24 Page 4 of 4 Motion: approval of establishing an "Investigator-Retired Annuitant Reserve Officer" position and authorize staff to amend the GPOA Salary Schedule to add the position.

Motion: Roberts
Second: Calderon
ROLL CALL VOTE: 5-0
Ayes: Calderon, Sanchez, Roberts, Johnson, Farr
Council came out of closed session at 7:28 pm with no further reportable action.

ADJOURNMENT
With no other items left to discuss, Mayor Farr adjourned to the next regular meeting on March 18th, 2023.

Elisa Arteaga, City Administrator
GRIDLEY CITY COUNCIL AGENDA: Special Meeting of 3-18-24 Page 1 of 2 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipalservices and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”

CALL TO ORDER
Mayor Farr called the meeting to order at 5:02 pm.

ROLL CALL
Councilmembers

Present: Farr, Roberts, Calderon, Johnson

Absent: Sanchez
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Rodney Harr, Police Chief
Tony Galyean, City Attorney
Ross Pippitt, Utility Director
Martin Pineda, Finance Director

ITEMS FOR COUNCIL CONSIDERATION

1. Study Session and Discussion Concerning City Consultant Services City Administrator Elisa Arteaga presented a PowerPoint presentation that showed all of the consultant agreements that the City currently holds and quickly highlighted the scope of work for each.

Vice Mayor Johnson stated that he would like to explore the options for the City to hire an inhouse, full time planner. Mayor Farr concurred.

Administrator Arteaga presented a comparison showing what the City has paid and is currently paying for planning services versus other neighboring Cities.

After Council discussion, it was the consensus of the Council to direct Administrator Arteaga to create a full-time City Planner position, job description and salary to bring back to Council for review and consideration.

COMMUNITY PARTICIPATION FORUM
The forum was opened and seeing no one was present to speak, was closed.

Gridley City Council – Special Meeting Minutes
Monday, March 18, 2024; 5:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Special Meeting of 3-18-24 Page 2 of 2 POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30-90 days):

Gridley Unified School District Land Dedication (Laurel Street) 4/1/2024 Utility Write Offs 4/1/2024
Fire - Calendar Year End 4/1/2024
Second Amendment to Cooperation Agreement - Groundwater Sustainability Agencies in the Butte Subbasin 4/1/2024
Enterprise Reserve Fund Policy 4/1/2024
TDA Audits 4/1/2024
Inventory Policy 4/1/2024
Cash Investment Policy 4/1/2024
Banking RFP 4/1/2024
CLOSED SESSION – None

ADJOURNMENT
Mayor Farr adjourned to the next regular meeting scheduled March 18, 2024.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-18-24 Page 1 of 6 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”

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

ROLL CALL
Councilmembers

Present: Farr, Roberts, Sanchez, Calderon, Johnson

Absent: None
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Rodney Harr, Police Chief
Tony Galyean, City Attorney
Ross Pippitt, Utility Director
Martin Pineda, Finance Director
Donna Decker, City Planner

PLEDGE OF ALLEGIANCE
Councilmember Calderon led the Pledge of Allegiance.

PROCLAMATION – None

INTRODUCTION OF NEW OR PROMOTED EMPLOYEES
Police Chief Rodney Harr introduced the new Gridley Police Officer Natalie Barrera.

COMMUNITY PARTICIPATION FORUM
Christian Garcia of Waste Management thanked Council for the approval of the contract extension with Waste Management at the March 4th, 2024 regular meeting. He provided a brief overview as to WM customer noticing as feedback from prior inquiries.

CONSENT AGENDA

1. City Council Minutes Dated March 4, 2024
Gridley City Council – Regular Meeting Minutes
Monday, March 18, 2024; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-18-24 Page 2 of 6 Motion: to approve consent agenda as presented.

MOTION: Roberts
SECOND: Johnson
ROLL CALL VOTE: 5-0
Ayes: Calderon, Johnson, Roberts, Sanchez, Farr

ITEMS FOR CONSIDERATION

2. Resolution No. 2024-R-008; A Resolution of the City Council of the City of Gridley Authorizing the Submission of the 2022/2023 Home Investment Partnerships Program Application to the California State Department of Housing and Community Development for Funding in the Amount Not to Exceed $12,200,000; and if Awarded, the Execution of a Standard Agreement, any Amendments Thereto, and Other Related Documents Necessary to Participate and Comply with in the HOME Investment Partnerships Program City Planner Donna Decker requested Council approve Resolution No. 2024-R-008 authorizing the City to submit an application for the Home Investment Partnerships Program for the Orchard View II project. Decker explained the application submission will further the partnership with affordable housing developers in the City providing much needed housing.

Motion: to approve Resolution 2024-R-008 and determine the project is Categorically Exempt per the California Environmental Quality Act, Section 15061(b)(3) MOTION: Sanchez
SECOND: Johnson
ROLL CALL VOTE: 5-0
Ayes: Calderon, Johnson, Roberts, Sanchez, Farr

3. Ordinance No. 849-2024: Introduction and First Reading by Title Only of Ordinance 849- 2024 to add the Agricultural Overlay District Zoning Designation Allowing Commercial Agricultural Production Until the Residentially Zoned Property is Developed. The Site Has a General Plan Land Use Designation of Residential and an Underlying Zoning Designation of Single-Family Residential District (R-1). The Property Is Located on the East Side of West Biggs Gridley Road, North and Contiguous to the Heron Landing Subdivision (APN 022-210- 092)
City Planner Donna Decker introduced Ordinance No. 849-2024 that would create an agricultural overlay to the Chandler Park Subdivision site, which would allow for commercial agricultural production until the site is developed.

Councilmember Sanchez shared concerns that the subdivision map was approved in 2021 and had still not been developed.

Councilmember Calderon shared concerns over the loss of jobs once the land is developed.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-18-24 Page 3 of 6 Mr. Daryl Bernard submitted hand-written comments that have been filed with the meeting records.

Motion: to accept the first reading of Ordinance No. 849-2024 MOTION: Roberts
SECOND: Calderon
ROLL CALL VOTE: 4-1
Ayes: Johnson, Roberts, Farr, Calderon
Noes: Sanchez

4. Sewer/Storm Drain Closed Circuit TV System Upgrade
Utility Director Ross Pippitt informed Council that the 12-year-old current CCTV system has not been functioning properly and the parts for this model were no longer available. Pippitt presented the only proposal received from U-Rock Utility Equipment.

Motion: to approve the CCTV system upgrade and award contract to U-Rock Utility.

MOTION: Johnson
SECOND: Roberts
ROLL CALL VOTE: 5-0
Ayes: Johnson, Sanchez, Roberts, Farr, Calderon

5. 3-Phase Transformers
Utility Director Ross Pippitt requested the purchase of five 3-Phase transformers and explained that Gridley has commercial projects under construction that will require 3-phase transformers for their power supply. Pippitt recommends that the City enter into contract with OneSource Supply Solutions.

Motion: to award contract to OneSource for the purchase of 5, 3-phase transformers MOTION: Roberts
SECOND: Sanchez
ROLL CALL VOTE: 5-0
Ayes: Johnson, Sanchez, Roberts, Farr, Calderon

6. GASB 75 Actuarial Valuation Services
Finance Director Martin Pineda explained that since 2013 the City has renewed the proposal with Jefferson Solutions every two-years to ensure compliance with the required GASB 75 statements.

If approved, the costs associated will be included in the FY 24/25 operating budget.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-18-24 Page 4 of 6 Motion: to approve the proposal from Jefferson Solutions.

MOTION: Sanchez
SECOND: Roberts
ROLL CALL VOTE: 5-0
Ayes: Johnson, Sanchez, Roberts, Farr, Calderon

7. Authorization to Enter into a MOU Agreement with the Butte County District Attorney’s Office for Digital Forensic Services
Police Chief Rodney Harr requested to enter into a MOU agreement with the Butte County District Attorney’s Office to provide digital forensic services to the Gridley Police Department in exchange for monetary assistance to the BCDA digital forensic unit. By entering into this agreement, GPD will have access to capabilities they would normally not have and the BCDA will have greater financial resources to maintain current digital forensic capabilities.

Motion: to approve the MOU with the BCDA Office
MOTION: Roberts
SECOND: Calderon
ROLL CALL VOTE: 5-0
Ayes: Johnson, Sanchez, Roberts, Farr, Calderon

8. Authorization To Enter into a Three (3) Year MOU Agreement with the Butte County District Attorney’s Office for Subpoena Services
Police Chief Rodney Harr presented the proposed MOU with the Butte County District Attorney’s Office for the production, servicing and record keeping of subpoenas for the GPD. Chief Harr explained that historically this agreement was renewed yearly since 2019 and the proposed MOU would extend the services another three years.

Motion: to approve the three (3) year MOU agreement with the Butte County District Attorney’s Office for subpoena services.

MOTION: Roberts
SECOND: Sanchez
ROLL CALL VOTE: 5-0
Ayes: Johnson, Sanchez, Roberts, Farr, Calderon

CITY STAFF AND COUNCIL COMMITTEE REPORTS
Councilmember Roberts attended the Red Suspenders Day meeting.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-18-24 Page 5 of 6 Mayor Farr announced that a Veteran’s Day Celebration will be held at the Veteran Hall, March 29th, open to all Veterans, from 8am – 11 am.

Vice Mayor informed Council that 3 vehicles were surplused and placed for a closed-bid auction at the Mosquito and Vector Control District meeting. He also reported on his attendance at the Sutter Butte Flood Control Agency meeting.

CITY ADMINISTRATOR REPORTS
City Administrator Arteaga reported on her attendance at the NCPA Utility Directors retreat in Healdsburg.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Gridley Unified School District Land Dedication (Laurel Street) 4/1/2024 Utility Write Offs 4/1/2024
Fire - Calendar Year End 4/1/2024
Second Amendment to Cooperation Agreement - Groundwater Sustainability Agencies in the Butte Subbasin 4/1/2024
Enterprise Reserve Fund Policy 4/1/2024
TDA Audits 4/1/2024
Inventory Policy 4/1/2024
Cash Investment Policy 4/1/2024
Banking RFP 4/1/2024

CLOSED SESSION
Council went into closed session at 7:10 pm.

9. Closed Session Conference with Labor Negotiators Pursuant to Government Code 54957.6 to Meet and Confer with IBEW1245
Motion: Council approves a temporary pay incentive increase for the IBEW1245 Classification:

Electrical Supervisor position in the amount not to exceed $1,146.19.

Motion: Farr
Second: Sanchez
ROLL CALL VOTE: 4-1
Ayes: Roberts, Johnson, Sanchez, Farr
Noes: Calderon

10. Closed Session Conference with Labor Negotiators Pursuant to Government Code 54957.6 Concerning Management MOU Contract and Benefits
Council came out of closed session at 8:04 pm with no further reportable action.

GRIDLEY CITY COUNCIL MINUTES: Regular Meeting of 3-18-24 Page 6 of 6

ADJOURNMENT
With no items left to discuss, Mayor Farr adjourned to the next regular meeting on April 1, 2024.

Elisa Arteaga, City Administrator
City Council Item #2
Staff Report
Date: April 15, 2024
To: Mayor, Councilmembers
From: Donna Decker, Planning Department
Subject: Ordinance No. 849-2024; Second Reading and Adoption of Ordinance 849-2024 by reading of title only: to add the Agricultural Overlay District zoning designation allowing commercial agricultural production until the residentially zoned property is developed. The site has a General Plan land use designation of Residential and an underlying zoning designation of SingleFamily Residential District (R-1). The property is located on the east side of West Biggs Gridley Road, north and contiguous to the Heron Landing Subdivision. (APN 022-210-092) Recommendation
It is recommended the City Council:

1. Determine the project is Categorically Exempt per the California Environmental Quality Act, Section 15061(b)(3), Review for Exemption, General Rule; and,

2. Recommend the City Council adopt Ordinance No. 849-2024 by reading of title only.

Summary
On March 18, 2024 the City Council considered Ordinance 849-2024, a request to add the Agricultural Overlay zone to the Chandler Park Subdivision in order to allow continued commercial agricultural operations until the site is developed. The property has an approved tentative subdivision map, TSM 2-20, Chandler Park Subdivision, to allow the development of the 40-acre parcel with 203 single family residential parcels; one of the parcels is retained for a lift station. The first reading of the ordinance was approved with a vote of 4-1, Councilmember Sanchez, opposed.

The ordinance returns to the City Council for the second reading.

Discussion
The subject site is an approximately 40-acre parcel located on the east side of W. Biggs Gridley Road and north of the Heron Landing subdivision.

Figure 1: Location Map
X Regular
Special
Closed
Emergency
Subject Site
N

Discussion
The applicant is proposing to continue to utilize the property for commercial agricultural uses. The Bernards propose to remove the remaining orchard, clear the land of debris, and prepare for the planting of a seed crop until the property will sell/develop the subdivision. The secondary zoning district of Agricultural Overlay was designed to allow land that has been approved for a residential or other use, to be farmed commercially until the land is developed.

Conclusion:

Provision to add the secondary zoning of Agricultural Overlay on this property utilizes a planning tool specifically designed to allow a commercial agricultural land use while waiting for the development to occur.

Public Notice
A notice was advertised 10 days prior to the regularly scheduled City Council meeting in the Gridley Herald, posted at City Hall, made available at the Administration public counter, and placed on the City website for review. Additionally, notices were mailed to property owners 300 feet from the subject site boundary. At the time this report was prepared no comments had been received.

Environmental Review
The proposed project is exempt from environmental review pursuant to the California Environmental Quality Act, Section 15061(b) (3), and Review for Exemption, General Rule. The subject site was used as agricultural prior to the adoption of a tentative subdivision map. Temporarily reverting to the existing use does not create unforeseen impacts.

Fiscal Impact
No additional fiscal impact is anticipated in the review of projects to comply with the ordinance.

Attachments –

1. Draft Ordinance No. 849-2024
ORDINANCE NO. 849-2024

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRIDLEY TO REZONE AN APPROXIMATELY 40 ACRES FROM SINGLE FAMILY RESIDENTIAL (R-1) TO SINGLE FAMILY RESIDENTIAL/AGRICULTURE OVERLAY (R-1/AO) ADDING THE AGRICULTURAL OVERLAY

DISTRICT ZONING DESIGNATION TO ALLOW COMMERCIAL AGRICULTURAL PRODUCTION UNTIL THE RESIDENTIALLY ZONED PROPERTY IS DEVELOPED. (TSM 2-20, APN 022-210-092)
WHEREAS, the applicant requests the City of Gridley approve the addition of the Agricultural Overlay District zoning designation of approximately 40 acres; and, WHEREAS, the proposed project is categorically exempt from environmental review pursuant to the California Environmental Quality Act, Section 15061(b) (3), and Review for Exemption, General Rule. The proposed overlay zoning does not create a project or create impacts in that agricultural uses were established on the property prior to the application to develop and no new circumstances exist that would impact the site or the surrounding area for the continued use of the property prior to the approval of TSM 1-07; and, WHEREAS, a duly noticed public hearing was held on January 17, 2024 by the Planning Commission recommending the proposed rezone be forwarded to the City Council for action; and,
WHEREAS, after considering the staff report, public testimony, and the recommendation from the Planning Commission, the City Council determined the proposed rezone was appropriate.

WHEREAS, the City Council reviewed and introduced the proposed amendment by reading of title only on March 18, 2024, passing to proceed to the second reading with a 4-1 vote.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRIDLEY DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: The City Council finds the rezone is consistent with the 2030 General Plan and CEQA.

SECTION 2: Approves the rezone adding the Agriculture Overlay District on approximately 40 acres from Single-Family Residential to Single-Family Residential/Agricultural Overlay District.

SECTION 3: Except as modified above, all present conditions of the approved TSM 2-20 development plans and designs remain in full force and effect.

SECTION 4: The Zoning Map of the City of Gridley on file with the City Clerk, designating and dividing the City into zoning districts, is hereby amended, in accordance with the herein description and Exhibit A.

SECTION 5: This ordinance shall be effective thirty (30) days after its passage and adoption. **
ORDINANCE NO. 849-2024
I HEREBY CERTIFY that the foregoing ordinance for the property to have the Agriculture Overlay zoning designation added to APN 022-210-092, and as noted in Sections 1-5, and in accordance with Exhibit A, was duly introduced by reading of title only, at a regular meeting of the City Council of the City of Gridley, California, held on the 18th day of March, 2024, and the second reading and adoption by reading of title only at the regular City Council meeting of the City of Gridley held on the 15th day of April, 2024 by the following vote:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
ATTEST: APPROVE:

Elisa Arteaga, City Clerk Mike Farr, Mayor
APPROVED AS TO FORM:

Anthony Galyean, City Attorney
ORDINANCE NO. 849-2024

EXHIBIT A
North
Subject Site
TSM 2-20, APN 022-210-092
General Plan: Residential
Zoning: R-1/AO

City Council Agenda Item #3
Staff Report
Date: 04/15/2024
To: Mayor and City Council
From: Ross Pippitt, Utility Director
Subject: 3-Phase Transformers Purchase – Supplemental Appropriation Recommendation
Staff respectfully request the City Council to review the supplemental appropriate and approve.

Background
On 03/18/2024, the council approved the purchase of 3-phase transformers. With council approval this staff report is to provide the supplemental appropriation resolution.

Financial Impact
This was not a budgeted item and it will increase the budget by $236,167.00. The expense to the City after reimbursement from the grant will be $206,625.75. Council previous approved to use Electric Reserve funds to cover the expense of the purchase.

Attachments
2024-R-009 – Supplemental Appropriation – 3-phase transformers X Regular
Special
Closed
Emergency
RESOLUTION NO.
2024-R-009
A RESOLUTION OF THE CITY OF GRIDLEY AUTHORIZING THE PURCHASE OF 3-PHASE

TRANSFORMERS AND APPRORIATING SUPPLEMENTAL FUNDS
WHEREAS, the City of Gridley has utilized 3-phase transformers for electric services for residential and commercial purposes; and
WHEREAS, the City of Gridley desires to purchase 3-phase transformers to have as back ups and inventory in the event of an emergency; and
WHEREAS, the Utility Director has identified how many and which transformers are needed to serve as back ups; and
WHEREAS, the City Council has approved the purchase of 3-phase transformers.

NOW, THEREFORE, BE IT RESOLVED BY THE GRIDLEY CITY COUNCIL to approve the supplemental appropriation from the Electric Reserve account 621-4600-56300 for a total not to exceed $236,167.00.

I HEREBY CERTIFY that the foregoing resolution was duly introduced and passed at a regular meeting of the City Council of the City of Gridley held on the 15th of April, 2024, by the following vote:

AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ATTEST: APPROVE:

Elisa Arteaga, City Clerk Michael W. Farr, Mayor
City Council Agenda Item #4
Staff Report
Date: April 15, 2024
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Amendment #2 of RSG’s contract for FY 2023/2024 Recommendation
Staff respectfully requests that the Mayor and City Council approve the contract amendment for FY 2023/2024 for consulting services with RSG, Inc in the amount not to exceed $8,000 for assistance with the sale of parcels at the industrial park and guidance on the City’s Long Range Property Management Plan (“LRMPM”).

Background
On February 5, 2024, the City of Gridley Council approved the amended contract with RSG, Inc increasing the amount by $7,000 for a total of $37,000 for FY 2023-2024. The first amendment of the contract was due to RSG advising the City of the need to comply with the Surplus Land Act for the sale of former Redevelopment Agency properties. The city authorized RSG to assist with the Surplus Land disposition process and incurring costs not originally planned for. RSG assisted the City in preparing resolutions and staff reports and submitting all required documents to the California Department of Housing and Community Development (HCD) for review which were approved January 2024.

Finance Staff was recently made aware to be compliant with the California Code, Health and Safety Code 34180(f) and the Long-Range Property Management Plan (LRPMP) which outlines parcels to be retained by the city for future development and those to be sold, will require additional assistance from RSG staff. The revised scope of work will provide necessary guidance relating to requirements, steps, and appropriate measures the city should take to transfer parcels to be retained by the city for future development, taxation and sale of parcels as outlined in the LRPMP. Therefore, the RSG contract will require a second amendment due to the additional scope of work for a total not to exceed $8,000, a revised overall total not to exceed $45,000 for FY 2023-2024.

Fiscal Impact
An $8,000 dollar increase for the amendment of the contract.

Attachments
RSG Contract
x Regular
Special
Closed
Emergency
April 10, 2024 Via Electronic Mail
Martin Pineda, Finance Director

CITY OF GRIDLEY
685 Kentucky Street
Gridley, CA 95948
REQUEST FOR CONTRACT AMENDMENT #2 - SUCCESSOR AGENCY SERVICES 2023-24 Dear Mr. Pineda:

RSG, Inc. (“RSG”) has a contract with the City of Gridley (“City”) acting as Successor Agency to the Gridley Redevelopment Agency (“Successor Agency”) to provide the consulting services necessary to comply with the Dissolution Act. The contract is dated August 7, 2023 with a term ending June 30, 2024 in the amount of $30,000, which was amended earlier this year for additional successor agency and surplus land compliance services to bring the total contract amount of $37,000.

This letter presents the scope of work and supplemental $8,000 fee for additional services as described herein.

SCOPE OF WORK
Staff has asked RSG to assist the City and Successor Agency with the proper disposition of properties retained by the City for Future Development as reflected in the Successor Agency’s adopted and approved Long Range Property Management Plan (“LRPMP”). The LRPMP designated the use and intended disposition of five properties, including Property No. 4 comprised of portions of two assessor parcel numbers which were both to be retained by the City for future development purposes.

Under the Health and Safety Code (Section 34180(f)), the City is permitted to sell these properties for future development purposes after it enters into compensation agreements with each of the affected taxing entities, without exception, including the City itself. These compensation agreements would stipulate the disposition of the sales proceeds that the City would remit itself to each taxing entity upon the sale of such property.

RSG would assist the City and Successor Agency in this process as required by law, including the preparation of documents needed to facilitate the proper disposition of the City properties.

No public or taxing entity meetings are included in this scope of work, but can be provided on a time and materials basis outside of this budget.

Martin Pineda, Finance Director

CITY OF GRIDLEY
April 10, 2024

FEE ESTIMATE
RSG will bill for the additional services described herein on a time-and-materials basis, for an additional budget increase to our contract of $8,000, bringing the total to $45,000 for the contract.

All work will be billed in accordance with our billing rates and policies set forth in our contract with the City.

We appreciate the opportunity to submit our proposal to the City of Gridley and the Successor Agency. If this proposal is acceptable as written, please sign where indicated and return to our office at your earliest convenience. If you have any questions, please do not hesitate to contact Suzy Kim at 714-316-2116.

Sincerely,
Jim Simon, Principal Suzy Kim, Director
APPROVED AND AUTHORIZED TO PROCEED:

Signature:

Printed
Name:

Title:

Date:

City Council Agenda Item #5
Staff Report
Date: April 15, 2024
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Butte Subbasin Groundwater Sustainability Agency Second Amendment to Cooperation Agreement
Recommendation
Staff respectfully requests the City Council approve the Second Amendment to the Cooperation Agreement and authorize the Mayor to sign the agreement.

Background
The Butte Subbasin Groundwater Sustainability Agencies (GSAs) signed a Cooperation Agreement in December 2019 agreeing to work together to sustainably manage the Butte subbasin, prepare a single Groundwater Sustainability Plan (GSP), cooperatively carry out the requirements of SGMA, and coordinate public involvement and outreach. Implementation of the Cooperation Agreement was initially funded through a GSP grant awarded by the Department of Water Resources (DWR) with in-kind contributions of the members. Beyond the initial grant funds, the GSAs agreed that funding for continued cooperation could be made by member contributions.

In October 2022, the GSAs approved the First Amendment (Amendment 1) to the Cooperation Agreement, agreeing to cover the initial costs of GSP implementation, including costs associated with technical and administrative support. As a result of Amendment 1, each GSA contributed $8,000 during the 2022/2023 Fiscal Year to cover identified consultant services and activities. Activities included the preparation of a Sustainable Groundwater Management (SGM) Grant Program grant application (December 2022), preparation of an Annual Report for submittal to DWR (April 1, 2023), and professional consultant services for the evaluation of costs associated with GSP implementation and SGMA compliance activities and identification of cost-sharing options (June-December 2023).

In June 2023, the Butte Subbasin GSAs, through Butte County, retained Luhdorff & Scalmanini Consulting Engineers (LSCE) to conduct the following activities:
1) Assist in determining the costs associated with implementing the GSP and SGMA compliance activities, and
2) Identify cost-sharing options between the GSAs.

LSCE in collaboration with the GSAs’ management committee identified anticipated costs over a five- year period, refer to Table 1, Butte Subbasin Operations Budget, Attachment A.

X Regular
Special
Closed
Emergency
The budget includes, among other things, the anticipated revenue needs to prepare a five-year GSP Periodic Evaluation and possible GSP amendments in response to the DWR GSP approval determination letter and recommended corrective actions.

Once the operational budget for GSP implementation and SGMA compliance costs were identified, the management committee evaluated a variety of cost-sharing options for consideration by the Butte Advisory Board. These options included: equal split, equal split adjusted based on service area size, cost per acre, cost based on groundwater use, cost based on estimated net recharge, equal split combined with cost per acre, and equal split combined with estimated groundwater use, see Attachment B, Long-Term Funding Project Technical Memorandum
On November 6, 2023, the Butte Advisory Board met to discuss the various cost-sharing options, focusing on the two preferred options 1) equal split and 2) equal split combined with estimated groundwater use. The Butte Advisory Board appointed an ad-hoc committee to further discuss the preferred options. Ultimately, the Butte Advisory Board’s ad hoc committee’s direction for the cost-sharing agreement was equal split between the 11 GSAs.

The Second Amendment to the Cooperation Agreement (Amendment 2) confirms an equal split cost-share between the 11 GSAs. Based on Table 1, Butte Subbasin Operations Budget, each GSA will contribute $12,337.55 for the 2023/2024 Fiscal Year; the County of Butte GSA will serve as the fund administrator. This method of sharing costs shall apply for each subsequent fiscal year until written notice is provided by any member expressing intent to renegotiate. In addition, the management committee will annually evaluate and monitor actual budget costs and forecasted expenditures and make reasonable adjustments as necessary.

Financial Impact
The cost-share will be an increase of $4,337.55. FY 23-24 budget does not require a supplemental appropriation because account 010-4020-54000 has sufficient funds to meet the increase. Future budgets will factor in the additional expense.

Attachment:

1. Second Amendment Cooperation Agreement

2. Table 1 Butte Subbasin Operations Budget

3. Long-Term Funding Project Technical Memorandum
1 SECOND AMENDMENT TO COOPERATION AGREEMENT AMONG THE

GROUNDWATER SUSTAINABILITY AGENCIES IN THE BUTTE SUBBASIN This SECOND AMENDMENT (Amendment) to for the allocation of implementation costs among the Butte Subbasin Groundwater Sustainability Agencies (Members) is made and entered into and effective upon the date when the last Member signs this Agreement (Effective Date) by and among the undersigned public agencies.

Recitals
WHEREAS, each Member is a Butte Subbasin GSA, as defined by the Sustainable Groundwater Management Act (SGMA); and
WHEREAS, in 2019, the Members entered into a Cooperation Agreement establishing cooperation in the development and implementation of the Butte Subbasin Groundwater Sustainability Plan (GSP); and
WHEREAS, under Article 12 of the Cooperation Agreement, the Cooperation Agreement may be amended by unanimous written agreement of the Members to provide for the allocation of cost-sharing for expenditures and contracts made pursuant to the Cooperation Agreement; and WHEREAS, on October 12, 2022, the Members adopted the First Amendment to the Cooperation Agreement setting forth, among other terms, an initial Member financial contribution for the implementation of the GSP (“First Amendment”); and WHEREAS, the Members have determined that additional cost-sharing is required to implement the Butte Subbasin GSP, consistent with Article 12 of the Cooperation Agreement; and NOW THEREFORE, in consideration of the matters recited and the mutual promises, covenants, and conditions set forth in this Amendment, the Members hereby agree to amend the Butte Subbasin Cooperation Agreement as follows:

1. Section 2 (Member Contributions) of the First Amendment is superseded and replaced in its entirety by the following:
“Each Member shall contribute to the administration and implementation of the Butte Subbasin Groundwater Sustainability Plan by contributing equal 1/11th shares of the mutually agreed upon budget for each year (Member Contribution). Member Contribution shall be remitted within sixty (60) days, upon receipt of invoice from the Fund Administrator in January of each year.

This method of sharing costs by Member Contribution shall apply each fiscal year (July 1- June 30) until written notice is provided by any Member to all other Members expressing intent to renegotiate Member Contribution (Renegotiation Notice). A Renegotiation Notice is effective as of June 30 and must be delivered to all other Members prior to July 1. Upon timely delivery of a Renegotiation Notice, the Members agree to meet and confer as reasonably necessary to negotiate in good faith a new or modified cost sharing method to be effective at the start of the next fiscal year beginning July 1.”
2 2. Section 3 (Fund Administrator) of the First Amendment is superseded and replaced in its entirety by the following:
“Fund Administrator. County of Butte GSA-Butte Subbasin is designated as the Fund Administrator. Member Contributions shall be made to the Fund Administrator, who shall account for and administer the Member Contribution consistent with the Cooperation Agreement, as amended, and applicable law. Members may from time to time designate a different Fund Administrator by unanimous consent. The Fund Administrator will provide budget updates to Members not less than once per quarter. The Fund Administrator shall provide these services for a fee not to exceed $1,500 annually.”

3. Budget Development, Review and Monitoring. Members will annually develop and thereafter monitor budgeted actual and forecasted expenditures and agree to meet and confer as reasonably necessary to consider adjustments to the budget as may be necessary to comply with SGMA and to implement the GSP. If amendments to increase the budget are necessary, such amendments must be unanimously approved by each Member and the new amended budget will be apportioned pursuant to the methodology in Section 1, above.

4. Except as specifically modified in this Second Amendment, the terms of the Cooperation Agreement and the First Amendment remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto, pursuant to actions regularly adopted by their respective governing boards, have caused their names to be affixed by their proper and respective officers as of the date of execution of this Amendment.

By: Date:

Chair of the Board of Directors, Biggs West Gridley Water District By: Date:

Chair of the Board of Directors, Butte Water District
By: Date:

Mayor, City of Biggs
By: Date:

Mayor, City of Gridley
By: Date:
3 Chair of the Board of Directors, Colusa Groundwater Authority By: Date:

Board of Supervisors Chair, County of Butte
By: Date:

Board of Supervisors Chair, County of Glenn
By: Date:

Chair of the Board of Trustees, Reclamation District No. 1004 By: Date:

Chair of the Board of Trustees, Reclamation District No. 2106 By: Date:

Chair of the Board of Directors, Richvale Irrigation District By: Date:

Chair of the Board of Directors, Western Canal Water District Butte Subbasin Long Term Funding Project - Budget
Cost Category-Subbasin Administration (shared costs) FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Personnel/Staffing Costs
Admin/Mgmt - Financial Mgmt Costs (County lead) $1,500 $1,500 $1,500 $1,500 $1,500 Legal Services - Member agency costs (define: Agr/Policy/Compl) $10,000 $10,000 $10,000 $10,000 $10,000 Professional Services
Grant Procurement $10,000 $10,000 $10,000 $10,000 $10,000 Reserve and Contingency
GSA Admin. Contingency (5%) $1,075 $1,075 $1,075 $1,075 $1,075 GSA Administration Costs Sub-Total $22,575 $22,575 $22,575 $22,575 $22,575 Cost Category-Subbasin SGMA Compliance Costs (shared costs) FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Annual Reporting $39,000 $39,000 $39,000 $39,000 $39,000 Monitoring $10,000 $10,000 $10,000 $10,000 $10,000
Five Year GSP Periodic Eval. w/Modeling Calibrations (due 2027) $46,250 $46,250 $46,250 $46,250 $37,000 Data Management System Upgrades and Maintenance $10,000 $10,000 $10,000 $10,000 $10,000 Long Term Financial Planning/Fees $2,500 $2,500 $2,500 $2,500 $2,500 SGMA Compliance Contingency (5%) $5,388 $5,388 $5,388 $5,388 $4,925 SGMA Compliance Costs Sub-Total $113,138 $113,138 $113,138 $113,138 $103,425 TOTAL GSA Admin + SGMA Compliance Costs $135,713 $135,713 $135,713 $135,713 $126,000 TOTAL GSA OPERATIONAL BUDGET (With 3% Inflation) $135,713 $139,784 $143,855 $147,927 $141,120 Butte Subbasin regional cost share annual budget will be reviewed annually and updated accordingly by the GSAs.

Butte Subbasin GSA regional cost - GSA Admin. items: Legal services provides 20-25 hours of time to address SGMA compliance legal related issues.

Butte Subbasin GSA regional cost - GSA Admin. items: Grant Procurement provides funds to prepare/submit 1-2 grant applications over 5-year period.

Butte Subbasin GSA regional cost - Five Year GSP Periodic Evaluation (2027) assumed to cost $185,000 including Report approval and updated modeling work.

BUTTE SUBBASIN GROUNDWATER ADVISORY BOARD - Long Term Funding Strategy Five-Year Final Subbasin Operations Budget - Administration and GSP Implementation/SGMA Compliance Costs FINAL | TECHNICAL MEMORANDUM
DATE: December 13, 2023 Project No. 23-1-071
TO: Chuck Sheppard, Biggs-West Gridley Water District
Kamie Loeser, Butte County
Pete Righero, Butte Water District
James “Bo” Sheppard, City of Biggs
Mike Farr, City of Gridley
Denise Carter, Colusa Groundwater Authority
Lisa Hunter, Glenn County
Hans Herkert, Reclamation District 1004
Charles Thieriot, Reclamation District 2106
Sean Earley, Richvale Irrigation District
Anjanette Shadley, Western Canal Water District
FROM: Eddy Teasdale, CHG, PG, Principal Hydrogeologist
Jacques DeBra, Principal, Supervising Water Resource Planner SUBJECT: Butte Subbasin – 2023 Long-Term Funding Project Technical Memorandum (TM)

INTRODUCTION
Luhdorff & Scalmanini, Consulting Engineers (LSCE) was hired by the Butte Subbasin GSAs through Butte County in 2023 to prepare a TM deliverable that updated GSP implementation and SGMA compliance revenue projections and evaluated long-term cost-sharing options to keep local costs as low as possible in the Butte Subbasin. The 2023 Long-Term Funding Project (Project) ensures that a long-term funding mechanism is in place by 2024 to support GSP implementation and SGMA compliance cost activities. The Project provides a segue from GSP planning and development to GSP implementation and SGMA compliance, which is more costly given the nature of GSP implementation and that the Butte Subbasin had DWR grant funds available for GSP development with no grant funds available for GSP implementation (other than FSS and TSS support from DWR). The LSCE Project TM deliverable includes updated revenue projections that differentiate between local GSA costs vs. regional (basin-wide) GSP implementation costs. The current Cooperation Agreement (included in Attachment 1) establishes a framework for the GSAs to work collaboratively, which is more cost-effective than working individually to implement the single GSP and achieve SGMA compliance. The Agreement may be updated as needed to reflect how the GSAs will work together over time to maintain local control over its groundwater resources while keeping SGMA compliance costs as low as possible. This TM summarizes the long-term revenue needs and options to facilitate regional cost-sharing that supports GSP implementation and SGMA Butte Subbasin GSAs
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compliance over the next five-year planning horizon with annual budget reviews. This TM does not address individual GSA funding needs.

BACKGROUND
The Butte Subbasin GSAs worked together through a Cooperation Agreement (Attachment 1) to develop a single GSP for the Subbasin. The GSAs work together to implement the GSP, which provides the basis for establishing cost-sharing arrangements and project funding strategies to implement priority water management actions to achieve and maintain groundwater sustainability in the region. The GSAs may update the Agreement periodically as needed through a collaborative process for the benefit of landowners receiving the benefit of SGMA compliance. The GSAs decided to update their revenue projections and costsharing methodology as they transition from GSP development to GSP implementation to ensure that necessary GSP implementation and SGMA compliance activities can be funded and implemented in a timely manner. This TM identifies updated anticipated revenue requirements needed during the 2024-2028 period to maintain GSA operations while meeting regulatory SGMA compliance requirements. Financial sustainability will support the successful implementation of the Subbasin’s single GSP while providing a SGMA compliance benefit to all landowners in the Subbasin.

The long-term regional funding needs for the Subbasin are outlined below which does not include individual local GSA and project implementation costs. Future revenue needs were updated to reflect actual or anticipated GSP implementation and SGMA compliance costs over the 2024-2028 planning horizon. Future SGMA compliance costs (2028-2033) for inter-basin coordination may be higher because the Butte Subbasin may need to complete additional analysis for modeling to properly characterize and calibrate the sustainability of the Subbasin. The Subbasin indirectly benefits from inter-basin activities of surrounding GSAs that are conducting similar analysis on a local and regional basis. DWR grant funds will indirectly benefit the regional revenue needs of the Butte Subbasin during the 2024-2028, as reflected in Attachment 2. Future DWR SGMA program grant funding (if/when available) is expected to focus on project planning and implementation actions versus GSA administration and/or SGMA compliance actions during the subsequent five-year planning period.

BUTTE SUBBASIN GSAS – PROJECT COLLABORATION FACTORS
There is a history of collaboration and coordination between and amongst the GSAs located within the Butte Subbasin boundary. This partnership, formalized through an existing Cooperation Agreement, has progressed through the SGMA compliance GSP development phase and is now entering the 20-year GSP implementation phase which will require a long-term funding strategy to achieve SGMA compliance. As the Butte Subbasin GSAs work to further its collaborative efforts the following factors have driven the long-term Subbasin funding strategy update process.

1. It benefits everyone to stay together instead of going it alone;

2. Commitment to keeping the costs as low as possible and is realistic (with an annual review to assess any necessary adjustments);

3. Those GSAs with a small footprint would like the cost allocation to account for cost implications associated with their size; and
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4. Those GSAs that are principally surface water districts would like the cost allocation model to account for a direct nexus with SGMA and include groundwater use as a component of the cost allocation methodology.

5. GSAs are independently funding their projects.

As the GSAs continue to work together the factors driving the process can be updated and/or weighted differently as warranted to achieve and maintain consensus for how SGMA compliance is funded in the Butte Subbasin. Collaboration provides a sound basis for addressing State regulatory issues and identifying solutions related to groundwater sustainability.
2023 LONG TERM FUNDING PROJECT
LSCE was engaged to review the Butte Subbasin administration (legal and financial items in the budget), GSP implementation, SGMA compliance, and project management action costs contained in the adopted GSP. These updated revenue projections serve as the basis to evaluate alternative cost allocation options so that a cost-sharing mechanism can be in place by January 2024 to cover Subbasin GSP implementation costs. There is currently no other funding source available to cover these ongoing Subbasin GSA and GSPrelated costs over the 2024-2028 planning horizon. LSCE evaluated the long-term costs of SGMA compliance over the planning horizon, and the recommended long-term funding option was based on the preferred cost allocation approach agreed to by the Subbasin GSAs. The long-term funding options addressed the following:

1. GSA Costs: Using the current GSA costs through a GSA survey, LSCE reviewed, categorized, and summarized Subbasin administration costs. Only regional GSA administration costs were included in the updated Subbasin costs necessary to maintain Subbasin operations for the 2024-2028 period. LSCE, in coordination with the GSAs, updated key cost assumptions and corresponding changes to future revenue projections, identifying regional GSA costs that could be shared by the GSAs. Each GSA covers their own local GSA costs.

2. GSP Costs: Using the Subbasin GSP, LSCE reviewed, categorized, and summarized costs to implement the GSP and meet SGMA requirements. LSCE, in coordination with the GSAs, updated key cost assumptions and corresponding changes to future revenue projections, identifying regional costs that could be shared by the GSAs.

3. Project Management Actions (PMAs): LSCE reviewed PMA costs included in the GSP, and the GSAs decided to pursue PMA implementation through the Cooperation Agreement provisions.

Lead project agency(ies) and/or partners will develop the appropriate project funding strategy with no PMAs identified for inclusion in the Subbasin regional cost allocation that could be shared by the GSAs. Projects included in the GSP are summarized in Attachment 3.

4. Cost Allocation Analysis: In collaboration with Subbasin management, LSCE developed alternative cost allocation methods in evaluating funding options to analyze considerations such as ease of implementation and understanding, equitability, reliability, and implementation costs. The GSAs will decide which funding option is preferred as a basis for sharing regional SGMA compliance costs.

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LSCE subsequently developed this Project Technical Memorandum to document updated revenue projections and long-term funding options evaluated by the GSAs. The TM will serve as a basis for updating future Subbasin GSP implementation and SGMA compliance costs, revenue projections, and funding options as needed to ensure financial sustainability and SGMA compliance for all GSAs. The GSAs can update the current Cooperation Agreement as necessary to meet long-term funding goals and objectives.

GSP Costs
The Butte Subbasin GSP split costs into three (3) aggregate cost categories:
x Subbasin Administration Costs: Costs incurred by Subbasin for administration related to GSP implementation.
x Subbasin GSP Implementation and SGMA Compliance Costs: Costs incurred by the Subbasin related to GSP implementation and SGMA compliance.
x Project and Management Action (PMA) Costs: Costs that are specific to individual GSA PMAs.

Funding sources for PMA costs have not been definitively identified at this time. Grant funding and TSS support as well as other funding sources will be considered and evaluated by each GSA to fund these projects and programs on an as-needed basis.

Subbasin Administration Costs
Subbasin Administration costs include costs that the GSAs will incur for implementation of the GSP on behalf of its members and stakeholders. Subbasin Administration costs were based on the estimated costs as reported in the project development and implementation chapters of the GSP and updated to reflect the best available information. LSCE reviewed and inventoried these costs, then evaluated different business models to identify the lowest cost option for GSA operations.

Subbasin Administration costs include Administration personnel costs, legal services for agreed to regional expenses, financial services (provided by Butte County), funding services, and 5% contingency of the estimated budget to cover unexpected Subbasin costs. The Subbasin Administration budget covers dayto-day activities to implement the GSP, such as public outreach, legal services, financial reporting, and other tasks. An annual 3% inflation adjustment factor is recommended for inclusion in the Subbasin Administration budget. Local GSA administration costs will be borne by each GSA, with Subbasin Administration costs shown in Table 1 below. The GSAs plan to continue with in-kind services to control Subbasin costs. The estimated total Subbasin Administration costs without the annual inflation adjustment are $22,575 per year. This assumes Butte County continues to serve as the Administrator providing Subbasin financial and funding support services. Facilitation Support Services (FSS) funded by DWR will continue to support cost-effective Subbasin collaboration and coordination activities.

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Table 1. Subbasin Administration Costs
Subbasin GSP Implementation and SGMA Compliance Costs
GSP implementation and SGMA compliance costs include Annual Reporting, GSP Five-Year Updates, GSA Coordination and Outreach, Surface-Groundwater interaction modeling, data management system (DMS) maintenance and updates, financial planning, and grant funding to implement priority projects. DWR has reviewed the Butte Subbasin GSP and has issued an assessment that the GSP is approved with noted comments for the Subbasin to address as part of the upcoming 2027 GSP update process. Monitoring and Implementation covers GSA-level monitoring of wells and water uses and updating the DMS as needed.

The Butte Subbasin GSAs will conduct intra- and inter-basin coordination amongst themselves and coordinate with surrounding Subbasins and GSAs in the region regarding GSP implementation and SGMA compliance activities. Currently, GSAs within the Subbasin will provide contributions based on the final Subbasin cost-sharing allocation approach agreed to by the GSAs serving as the preferred long-term funding strategy to share Subbasin GSA Administration and GSP implementation costs, including the activities for implementation of the GSP. The Butte Subbasin GSP implementation and SGMA compliance costs were based on the data reported in the GSP and updated to reflect the best available information on GSP implementation costs and refinements regarding projected SGMA compliance costs.

GSP Implementation and SGMA Compliance activities include:
x Annual Reports: Collect data, prepare and submit Annual Reports to DWR each April 1. These Reports serve as a report card on groundwater conditions in the Subbasin. x Five-Year Updates: The GSA must periodically (at least every five years or with any amendment of the GSP) prepare and submit Five-Year GSP updates to DWR, which includes conducting updated groundwater modeling calibrations and preparing the updated GSP Report based on Annual Report data. The next update is expected in 2027. x Surface-Groundwater Interaction Modeling: Collaborate with GSAs in the Northern Sacramento Valley to address surface-groundwater interactions, especially for boundary conditions in GSA service areas, to ensure that groundwater depletions will not impact surface water interactions or environmental uses.

Cost Category-Subbasin Administration (shared costs) FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Personnel/Staffing Costs
Admin/Mgmt - Financial Mgmt Costs (County lead) $1,500 $1,500 $1,500 $1,500 $1,500 Admin/Mgmt- Other Costs $0 $0 $0 $0 $0
Legal Costs
Legal Services - Member agency costs (define: Agr/Policy/Compl) $10,000 $10,000 $10,000 $10,000 $10,000 Legal Services - outside counsel costs (litigation) - excluded $0 $0 $0 $0 $0 Direct Costs
Audits/Insurance/Supplies/materials/copies/postage/etc.

Professional Services
Grant Procurement $10,000 $10,000 $10,000 $10,000 $10,000 Reserve and Contingency
GSA Admin. Contingency (5%) $1,075 $1,075 $1,075 $1,075 $1,075 GSA Administration Costs Sub-Total $22,575 $22,575 $22,575 $22,575 $22,575 Butte Subbasin GSAs
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x GSA Coordination and Outreach: The GSAs will need to continue with intra and inter-basin GSA coordination and outreach activities to facilitate GSP implementation in an efficient and collaborative manner using FSS through DWR.
x DWR Review of GSP: The GSAs will need to update issues included in the DWR Determination Letter approving the Subbasin GSP as part of the 2027 GSP update process which may include amending the GSP to respond to any DWR comments provided regarding submittal and review of the 2022 Butte Subbasin GSP. This may include items for inclusion in the 2027 GSP update process.
x Data Monitoring and Data Management: Well monitoring and maintenance and the implementation and maintenance of a data management system. x Subbasin Financial Planning: Subbasin financial planning will continue to evaluate future Subbasin funding sources for GSA operations, GSP implementation and SGMA compliance, and project implementation.
x Grant Procurement: Identify and apply for federal, state, and private grants to supplement GSP implementation activities.
x Contingency: Five percent of the total Subbasin budget is included to cover unexpected costs.

The long-term GSP implementation and SGMA compliance costs in the GSP were updated to reflect actual or anticipated costs and refined assumptions that were incorporated into the updated Subbasin revenue projections, as shown in Table 2 below. These costs are between $103,425 and $113,138 per year, or approximately $555,975 over the 5-year period. Note that the SGMA compliance costs do not include the recommended annual inflation adjustment factor, which is recommended for inclusion in the final revenue projections. The Subbasin will continue to pursue additional grant funds for necessary GSP implementation and SGMA compliance total costs that help to keep long-term revenue needs as low as possible while meeting system SGMA compliance requirements. The County of Butte GSA will serve as the Fund Administrator as agreed upon in the First Amendment to the Cooperation Agreement working together with the GSAs and providing financial support services over the next five-year period to maintain lower long-term revenue needs for the Subbasin.

Table 2. Subbasin GSP Implementation and SGMA Compliance Costs PMA implementation costs will be covered by individual GSAs through outside grant funding sources and other revenue sources as warranted for project implementation. Project funding efforts are the Cost Category-Subbasin SGMA Compliance Costs (shared costs) FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Annual Reporting $39,000 $39,000 $39,000 $39,000 $39,000 Monitoring $10,000 $10,000 $10,000 $10,000 $10,000
Five Year GSP Update w/Modeling Calibrations (due 2027) $46,250 $46,250 $46,250 $46,250 $37,000 Surface-GW Interaction Modeling
GSA Coordination & Outreach (w/in the Subbasin)
GSA Coordination & Outreach (interbasin coordination)
Data Management System Upgrades and Maintenance $10,000 $10,000 $10,000 $10,000 $10,000 Long Term Financial Planning/Fees $2,500 $2,500 $2,500 $2,500 $2,500 Grant Procurement
SGMA Compliance Contingency (5%) $5,388 $5,388 $5,388 $5,388 $4,925 SGMA Compliance Costs Sub-Total $113,138 $113,138 $113,138 $113,138 $103,425 Butte Subbasin GSAs
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responsibility of the lead project proponent (or partners) based on agreed-upon cost-sharing arrangements or project implementation agreements in place between the interested parties. A summary of the Butte Subbasin GSP projects and programs that may need future funding is included in Attachment

3. Project costs will be updated as warranted.

Butte Subbasin GSP Implementation Revenue Needs
The Butte Subbasin GSP implementation revenue needs are based on the estimated GSP implementation costs for Subbasin Operations and SGMA Compliance actions for all GSAs. As described earlier, LSCE coordinated with the GSAs and stakeholder process to present and receive feedback on the estimated Subbasin operational costs. Outcomes included:
x Subbasin administration and legal costs are updated to reflect the GSAs’ best estimates of implementation costs, assuming that all GSAs continue with current Program Manager roles and that legal costs related to any legal challenges will be agreed to separately as needed. x The Subbasin administration budget includes annual costs for staffing financial services, legal services, and grant procurement services to be cost shared between the GSAs. Each GSA would be responsible for their own local GSA administration costs. x The Subbasin GSAs would cost share similar GSP implementation and SGMA compliance costs, each paying their proportional share of total Subbasin revenue needs projections. x PMA costs will be excluded from the Subbasin revenue needs assessment because these costs may be developed and funded by individual project proponents under separate funding processes or through other funding sources (consistent with the current Cooperation Agreement).

Subbasin revenue needs would account for the agreed upon cost allocation approach over the five-year planning horizon with a 3% annual inflation rate adjustment recommended for inclusion in the final cost allocation solution during years 2 through 5. The Subbasin will periodically evaluate the Subbasin revenue needs at least every five (5) years or with any Amendment of the GSP.

Table 3 summarizes total Subbasin projected revenue needs for the five-year period from FY24-25 through FY28-29, showing additional detail for cost categories within the Subbasin Administration and Subbasin GSP implementation and SGMA compliance costs. While actual costs for the respective budget items may be projected, these items reflect the best current estimates available from known information.

Initial revenue needs are approximately $22,575 for Subbasin administration costs and $113,138 for Subbasin GSP implementation and SGMA compliance costs, with total annual revenue projections ranging between $135,713 and $147,927.

Butte Subbasin GSAs
December 13, 2023

23-071/REPORT/Water TM/Final
Table 3. Butte Subbasin Shared GSP Implementation Revenue Needs

FUNDING OPTIONS - COST ALLOCATION APPROACHES
The Butte Subbasin GSAs established updated revenue projections over the upcoming five-year period for use in evaluating long-term cost allocation options. The GSAs discussed a wide range of funding options and resulting cost allocation approaches. The goal of evaluating many cost allocation approaches was to provide the GSAs with the trade-offs (pros/cons) for different options to facilitate consensus in selecting a preferred cost allocation approach. The GSAs preferred a cost allocation option that was easy to understand and implement with low implementation costs. A summary of the cost allocation options evaluated by LSCE and discussed with the GSAs include:
5-Year GSP Implementation Inflation Adjustment 3% 3% 3% 3% Cost Category-Subbasin Administration (shared costs) FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Personnel/Staffing Costs
Admin/Mgmt - Financial Mgmt Costs (County lead) $1,500 $1,500 $1,500 $1,500 $1,500 Admin/Mgmt- Other Costs $0 $0 $0 $0 $0
Legal Costs
Legal Services - Member agency costs (define: Agr/Policy/Compl) $10,000 $10,000 $10,000 $10,000 $10,000 Legal Services - outside counsel costs (litigation) - excluded $0 $0 $0 $0 $0 Direct Costs
Audits/Insurance/Supplies/materials/copies/postage/etc.

Professional Services
Grant Procurement $10,000 $10,000 $10,000 $10,000 $10,000 Reserve and Contingency
GSA Admin. Contingency (5%) $1,075 $1,075 $1,075 $1,075 $1,075 GSA Administration Costs Sub-Total $22,575 $22,575 $22,575 $22,575 $22,575 Cost Category-Subbasin SGMA Compliance Costs (shared costs) FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Annual Reporting $39,000 $39,000 $39,000 $39,000 $39,000 Monitoring $10,000 $10,000 $10,000 $10,000 $10,000
Five Year GSP Update w/Modeling Calibrations (due 2027) $46,250 $46,250 $46,250 $46,250 $37,000 Surface-GW Interaction Modeling
GSA Coordination & Outreach (w/in the Subbasin)
GSA Coordination & Outreach (interbasin coordination)
Data Management System Upgrades and Maintenance $10,000 $10,000 $10,000 $10,000 $10,000 Long Term Financial Planning/Fees $2,500 $2,500 $2,500 $2,500 $2,500 Grant Procurement
SGMA Compliance Contingency (5%) $5,388 $5,388 $5,388 $5,388 $4,925 SGMA Compliance Costs Sub-Total $113,138 $113,138 $113,138 $113,138 $103,425 TOTAL GSA Admin + SGMA Compliance Costs $135,713 $135,713 $135,713 $135,713 $126,000 Cost Category-Subbasin GSP Implementation/PMA (Shared Costs) FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Shallow Monitoring Wells (and Stream Gauges) - TSS covering Well Inventory (incorporate into 5-Year update)
Multi-benefit Recharge Projects
Lateral Heading and Turnout Measurement Modernization
Parrott-Phalen/Comanche Creek Water Conveyance Impr Proj Dual Source Irrigation Systems Pilot Program
Little Butte Creek Water Delivery Reliability Project (West.Canal) The Nature Conservancy Multi-benefit Recharge Project
System Modernization Project
PMA Project Contingency (10%)
PMA Costs Sub-Total $0 $0 $0 $0 $0
TOTAL GSA OPERATIONAL BUDGET (GSA Adm./SGMA Compl./PMAs) $135,713 $135,713 $135,713 $135,713 $126,000 TOTAL GSA OPERATIONAL BUDGET (With Inflation) $135,713 $139,784 $143,855 $147,927 $141,120 Butte Subbasin GSA regional cost share annual budget will be reviewed annually and updated accordingly by the GSAs.

Butte Subbasin GSA regional cost - GSA Admin. items: Legal services provides 20-25 hours of time to address SGMA compliance legal related issues.

Butte Subbasin GSA regional cost - GSA Admin. items: Grant Procurement provides funds to prepare/submit 1-2 grant applications over 5-year period that benefits the Subbasin.

Butte Subbasin GSA regional cost - Five Year GSP Update (2027) assumed to cost $185,000 including Report approval and updated modeling work.

BUTTE SUBBASIN GROUNDWATER ADVISORY BOARD - Long Term Funding Strategy Five-Year Final Subbasin Operations Budget - Administration and GSP Implementation/SGMA Compliance Costs PMA costs covered by each GSA.

Butte Subbasin GSAs
December 13, 2023

23-071/REPORT/Water TM/Final
Option 1: Equal Split. The equal split fee was calculated by dividing the total Subbasin regional GSP revenue needs by the total number of GSAs (11). For this option, each GSA would pay the same amount for their share of total Subbasin revenue needs. This fee approach is easy to understand and implement because it provides SGMA compliance benefits to all GSAs. The equal split fee does not account for GSA size or groundwater use patterns in the Subbasin.

Option 1A: Equal Split (Adjusted For SGMA Compliance Costs). This option would allocate a higher percentage of total Subbasin costs to larger GSA service areas that have lower per-acre SGMA compliance costs than the small GSA service areas. There is one equal split fee for the larger GSAs and one equal split fee (lower) for the smaller GSAs. This fee option considers the costs of SGMA compliance for larger versus smaller GSAs.

Option 2: Cost Per Acre (area). This option would calculate the fee allocating the total Subbasin revenue needs by acreage in each GSA service area. This fee option would charge the GSAs for the acreage within their service area independent of GSA water supplies when calculating proposed fees.

Option 3: Cost Based On Estimated GSA Groundwater Use. This option would allocate total Subbasin GSP implementation revenue needs as a function of how much groundwater each GSA uses based on the historical average data (2000-2018) from modeling conducted in the GSP development process. This method would be based on estimated groundwater use only without consideration of GSA surface water supplies.

Option 3A: Cost Based on Estimated GSA Net Recharge. This option would charge GSAs with a positive net recharge a lower percentage of total Subbasin costs than GSAs with negative net recharge values. This option would require accurate information including estimated groundwater use and known surface water diversions. For this evaluation the historical data set was referenced from the 2022 GSP. The option would need to verify that defensible net recharge data is available to establish a cost allocation approach if net recharge is determined to be the optimal cost allocation strategy. Data updates may be required for accuracy and implementation.

Option 4: Cost Based on Equal Split Fee and Cost Per Acre (area). This option would allocate Subbasin Administration costs using the equal split fee method (Option 1) and would allocate Subbasin SGMA compliance costs based on cost per acre method (Option 2). This option does not account for groundwater use patterns in the Subbasin.

Option 5: Cost Based on Equal Split Fee and Estimated Groundwater Use. This option would allocate Subbasin Administration costs using the equal split fee method (Option 1) and would allocate Subbasin SGMA compliance costs based on estimated groundwater use per GSA (Option 3). This option differs from Option 4, which allocates Subbasin costs primarily by area, by instead using the average estimated groundwater use component within each GSA attempting to provide a stronger nexus between Subbasin cost allocation and SGMA compliance costs. This option provides a wide range of sub-options by varying how total Subbasin costs are allocated between Option 1 vs. Option 3 components. If the GSAs decide this is the best option, then they would decide on the optimal sub-option that is most equitable. Allocating 50%/30%/10% of costs to SGMA compliance has been discussed to date as well as 20%/15%/10% scenarios.

Butte Subbasin GSAs
December 13, 2023

23-071/REPORT/Water TM/Final
Table 4 compares each cost-share option in terms of the cost borne by each GSA. Depending on the preferred cost allocation option selected, the GSAs may also need to select a sub-option, if applicable. The GSAs need to decide on the preferred cost allocation option and then select the best sub-option that has consensus support amongst the GSAs.

Table 4. Butte Subbasin GSA Cost Allocation Options Summary The Subbasin GSAs considered various sub-options of Option 5 by allocating different percentages of total Subbasin costs to Option 1 and 3 cost allocation components. The GSAs would need to determine if Option 5 is the preferred option. If so, the GSAs would have to agree on the preferred final cost allocation breakdown between the Option 1 and 3 cost components. A copy of the spreadsheet used to assess the Option 5 funding option scenarios is included in Attachment 4. The primary Option 5 scenarios recommended for consideration are summarized in Table 5 below. The scenario percent represents the percentage of total Subbasin costs allocated to the estimated groundwater use component (Option 3) of the Option 5 cost allocation approach.

Table 5. Butte Subbasin Cost Allocation Option 5 Scenarios Summary Butte Subbasin GSA - MAs Option 1:

Equal Split
Option 1A:

Equal Split (Adj.)
Option 2:

Per Acre
Option 3:

Est. GW Use
Option 3A:

Net Recharge
Option 4:

Options 1&2
Option 5:

Options 1&3
Biggs-West Gridley Water District $12,338 $14,238 $17,824 $3,962 $8,840 $16,911 $5,355 Butte County $12,338 $14,238 $19,861 $39,944 $15,252 $18,609 $35,352 Butte Water District $12,338 $14,238 $9,655 $11,042 $8,840 $10,101 $11,258 City of Biggs $12,338 $9,011 $148 $303 $15,252 $2,176 $2,305 City of Gridley $12,338 $9,011 $258 $1,394 $15,252 $2,267 $3,214 Colusa Groundwater Authority $12,338 $9,011 $1,084 $4,816 $15,252 $2,956 $6,067 Glenn County $12,338 $9,011 $1,974 $3,153 $15,252 $3,698 $4,681 Reclamation District 1004 $12,338 $14,238 $12,448 $10,677 $8,840 $12,430 $10,953 Reclamation District 2106 $12,338 $14,238 $18,821 $52,049 $15,252 $17,742 $45,443 Richvale Irrigation District $12,338 $14,238 $19,635 $1,546 $8,840 $18,421 $3,341 Western Canal Water District $12,338 $14,238 $34,006 $6,827 $8,840 $30,402 $7,743 Total Butte Subbasin Costs $135,713 $135,713 $135,713 $135,713 $135,712 $135,713 $135,713 BUTTE SUBBSASIN GSA 20.00% 15.00% 10.00%
Biggs-West Gridley Water District $10,662 $11,081 $11,500 Butte County $17,859 $16,479 $15,098
Butte Water District $12,078 $12,143 $12,208
City of Biggs $9,931 $10,532 $11,134
City of Gridley $10,149 $10,696 $11,243
Colusa Groundwater Authority $10,833 $11,209 $11,585
Glenn County $10,501 $10,960 $11,419
Reclamation District 1004 $12,005 $12,089 $12,172
Reclamation District 2106 $20,280 $18,294 $16,309
Richvale Irrigation District $10,179 $10,719 $11,258
Western Canal Water District $11,235 $11,511 $11,786
TOTAL $135,713 135,713 $135,713
Option 5 Scenarios - Year 1
Butte Subbasin GSAs
December 13, 2023

23-071/REPORT/Water TM/Final
Attachment 5 represents the template for the final Butte Subbasin cost allocation option summary for the Option 1 and 5 scenarios recommended for consideration by the GSAs. The final annual cost for each GSA will be dependent on the final cost allocation option selected by the GSAs which will determine the annual cost sharing contributions to be attributed to each GSA during the 2024-2028 period.

It is recommended that the GSAs finalize the preferred long term cost allocation option during calendar year 2023 so that SGMA compliance activities identified in the updated revenue projections will be funded during the 2024-28 period for the benefit of the Subbasin.

Option 1 is the current cost allocation strategy that the Subbasin is familiar with and has utilized and supported to get this point. Moving into the GSP implementation phase of SGMA compliance it is recommended that the GSAs consider supporting Option 1 for the 2024-2028 period with annual budget and cost allocation strategy reviews to facilitate updates that better meet the needs of the GSAs. All GSAs in the State are learning more about their long-term SGMA compliance budget needs and should be open minded to update cost allocations in the future if better cost allocation approaches are available to better serve the goals and objectives of the GSAs.

ATTACHMENT 1
Butte Subbasin 2023 Long Term FundingWƌŽũĞĐƚ
Ͳ Cooperative Agreement

ATTACHMENT 2
Butte Subbasin 2023 Long Term FundingWƌŽũĞĐƚ
Ͳ Regional Subbasin Boundaries
BuƩe Subbasin TM – AƩachment 2
DWR SGMA R2
ImplementaƟon
Grant Funding
Leveraging DWR grant
funding for regional
efforts (modeling and
GSA coordinaƟon).

ATTACHMENT 3
Butte Subbasin 2023 Long Term FundingWƌŽũĞĐƚ
Ͳ Butte Subbasin GSP Estimated PMA Costs
Recommended PMA Cost Allocation For 2023 Long Term Funding Project Cost CategoryͲGSP Implementation/PMA Costs FY23Ͳ24 FY24Ͳ25 FY25Ͳ26 FY26Ͳ27 FY27Ͳ28 Shallow Monitoring Wells (and Stream Gauges) $0 $0 $0 $0 $0 Well Inventory $0 $0 $0 $0 $0
MultiͲbenefit Recharge Projects
Lateral Heading and Turnout Measurement Modernization $0 $0 $0 $0 $0 ParrottͲPhalen/Comanche Creek Water Conveyance Impr Proj $0 $0 $0 $0 $0 Dual Source Irrigation Systems Pilot Program $0 $0 $0 $0 $0 Little Butte Creek Water Delivery Reliability Project $0 $0 $0 $0 $0 The Nature Conservancy MultiͲbenefit Recharge Project $0 $0 $0 System Modernization Project $0 $0 $0 $0 $0
PMA Project Contingency (10%) $0 $0 $0 $0 $0
PMA Costs SubͲTotal $0 $0 $0 $0 $0
Scenario 1: Minimal PMAs
Cost CategoryͲGSP Implementation/PMA Costs FY23Ͳ24 FY24Ͳ25 FY25Ͳ26 FY26Ͳ27 FY27Ͳ28 Shallow Monitoring Wells (and Stream Gauges) $50,000 $50,000 $50,000 $50,000 $50,000 Well Inventory $40,000 $20,000 $20,000 $20,000 $0
MultiͲbenefit Recharge Projects
Lateral Heading and Turnout Measurement Modernization $0 $0 $0 $0 $0 ParrottͲPhalen/Comanche Creek Water Conveyance Impr Proj $87,400 $87,400 $87,400 $87,400 $87,400 Dual Source Irrigation Systems Pilot Program $0 $0 $0 $0 $0 Little Butte Creek Water Delivery Reliability Project $123,200 $123,200 $123,200 $123,200 $123,200 The Nature Conservancy MultiͲbenefit Recharge Project $65,667 $65,667 $65,667 System Modernization Project $0 $0 $0 $0 $0
PMA Project Contingency (10%) $30,060 $34,627 $34,627 $34,627 $26,060 PMA Costs SubͲTotal $330,660 $380,893 $380,893 $380,893 $286,660 Scenario 2: Moderate PMAs
Cost CategoryͲGSP Implementation/PMA Costs FY23Ͳ24 FY24Ͳ25 FY25Ͳ26 FY26Ͳ27 FY27Ͳ28 Shallow Monitoring Wells (and Stream Gauges) $50,000 $50,000 $50,000 $50,000 $50,000 Well Inventory $40,000 $20,000 $20,000 $20,000 $0
MultiͲbenefit Recharge Projects
Lateral Heading and Turnout Measurement Modernization $127,000 $127,000 $127,000 $127,000 $127,000 ParrottͲPhalen/Comanche Creek Water Conveyance Impr Proj $87,400 $87,400 $87,400 $87,400 $87,400 Dual Source Irrigation Systems Pilot Program $0 $0 $0 $0 $0 Little Butte Creek Water Delivery Reliability Project $123,200 $123,200 $123,200 $123,200 $123,200 The Nature Conservancy MultiͲbenefit Recharge Project $65,667 $65,667 $65,667 System Modernization Project $194,000 $194,000 $194,000 $194,000 $194,000 PMA Project Contingency (10%) $62,160 $66,727 $66,727 $66,727 $58,160 PMA Costs SubͲTotal $683,760 $733,993 $733,993 $733,993 $639,760 Scenario 3: Maximum PMAs
Cost CategoryͲGSP Implementation/PMA Costs FY23Ͳ24 FY24Ͳ25 FY25Ͳ26 FY26Ͳ27 FY27Ͳ28 Shallow Monitoring Wells (and Stream Gauges) $50,000 $50,000 $50,000 $50,000 $50,000 Well Inventory $40,000 $20,000 $20,000 $20,000 $0
MultiͲbenefit Recharge Projects
Lateral Heading and Turnout Measurement Modernization $127,000 $127,000 $127,000 $127,000 $127,000 ParrottͲPhalen/Comanche Creek Water Conveyance Impr Proj $87,400 $87,400 $87,400 $87,400 $87,400 Dual Source Irrigation Systems Pilot Program $480,000 $720,000 $1,200,000 $1,920,000 $480,000 Little Butte Creek Water Delivery Reliability Project $123,200 $123,200 $123,200 $123,200 $123,200 The Nature Conservancy MultiͲbenefit Recharge Project $65,667 $65,667 $65,667 System Modernization Project $194,000 $194,000 $194,000 $194,000 $194,000 PMA Project Contingency (10%) $110,160 $138,727 $186,727 $258,727 $106,160 PMA Costs SubͲTotal $1,211,760 $1,525,993 $2,053,993 $2,845,993 $1,167,760 ATTACHMENT 
Butte Subbasin 2023 Long Term FundingWƌŽũĞĐƚ
Ͳ ZĞŐŝŽŶĂů'^ŽƐƚ^ŚĂƌŝŶŐKƉƚŝŽŶϱ^ĐĞŶĂƌŝŽƐ;ϮϬϮϰͲϮϴͿ Butte SubbasinͲ2023 Long Term Funding Project TMͲAttachment 4 85% 15% $135,713
Option 5: Hybrid 2 Option 1 Option 1 % Option 3 Option 3 Option 3 % Option 3 Total Total % Cost Allocation GW UseͲafy % Cost Allocation Cost Allocation Butte Subbasin GSAͲMas GSA Admin. GW Use_afy Butte Subbasin GSA Western Canal Water District 10,486.91 $ 7.73% 8,325.00 5.03% 0.75% 1,023.98 $ $ 11,510.89 8.48% Western Canal Water District Reclamation District No. 2106 10,486.91 $ 7.73% 63,474.00  38.35% 5.75% 7,807.33 $ $ 18,294.25 13.48% Reclamation District No. 2106 County of Butte 10,486.91 $ 7.73% 48,712.00  29.43% 4.41% 5,991.60 $ $ 16,478.51 12.14% County of Butte County of Glenn 10,486.91 $ 7.73% 3,845.00 2.32% 0.35% 472.94 $ $ 10,959.85 8.08% County of Glenn Reclamation District No. 1004 10,486.91 $ 7.73% 13,021.00 7.87% 1.18% 1,601.59 $ $ 12,088.50 8.91% Reclamation District No. 1004 Colusa Groundwater Authority 10,486.91 $ 7.73% 5,873.00 3.55% 0.53% 722.38 $ $ 11,209.30 8.26% Colusa Groundwater Authority Richvale Irrigation District 10,486.91 $ 7.73% 1,885.00 1.14% 0.17% 231.86 $ $ 10,718.77 7.90% Richvale Irrigation District BiggsͲWest Gridley Water District 10,486.91 $ 7.73% 4,832.00 2.92% 0.44% 594.34 $ $ 11,081.25 8.17% BiggsͲWest Gridley Water District Butte Water District 10,486.91 $ 7.73% 13,466.00  8.14% 1.22% 1,656.32 $ $ 12,143.24 8.95% Butte Water District City of Biggs $ 10,486.91 7.73% 370.00 0.22% 0.03% 45.51 $ $ 10,532.42 7.76% City of Biggs City of Gridley $ 10,486.91 7.73% 1,700.00 1.03% 0.15% 209.10 $ $ 10,696.01 7.88% City of Gridley Total Butte Subbasin 115,356.05 $ 85.00% 165,503.00  100.00% 15.00% 20,356.95 $ $135,713.00 100.00% ALPHABETIZE 35.00% 20.00% 10.00%
Western Canal Water District 10,409 11,235 11,786
Reclamation District No. 2106 26,237 20,280 16,309
County of Butte 22,000 17,859 15,098
County of Glenn 9,123 10,501 11,419
Reclamation District No. 1004 11,756 12,005 12,172
Colusa Groundwater Authority 9,705 10,833 11,585
Richvale Irrigation District 8,560 10,179 11,258
BiggsͲWest Gridley Water District 9,406 10,662 11,500
Butte Water District 11,884 12,078 12,208
City of Biggs 8,126 9,931 11,134
City of Gridley 8,507 10,149 11,243
TOTAL 135,713 135,713 135,713
Option 5 Scenario Spreadsheet
ƵƚƚĞ^ƵďďĂƐŝŶ>ŽŶŐdĞƌŵ&ƵŶĚŝŶŐKƉƚŝŽŶƐͲKƉƚŝŽŶϱ^ĐĞŶĂƌŝŽƐZĞĐŽŵŵĞŶĚĞĚ&Žƌ'^ŽŶƐŝĚĞƌĂƚŝŽŶ;&ŽƌϮϬϮϰͲϮϴWĞƌŝŽĚͿ ATTACHMENT 5
Butte Subbasin 2023 Long Term FundingWƌŽũĞĐƚ
Ͳ Regional GSA Cost Sharing Summary (2024-28)Ͳ&ŽƌKƉƚŝŽŶƐϭĂŶĚϱ Butte Subbasin GSA FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Biggs-West Gridley Water District $12,338 $12,708 $13,078 $13,448 $12,829 Butte County $12,338 $12,708 $13,078 $13,448 $12,829
Butte Water District $12,338 $12,708 $13,078 $13,448 $12,829 City of Biggs $12,338 $12,708 $13,078 $13,448 $12,829
City of Gridley $12,338 $12,708 $13,078 $13,448 $12,829 Colusa Groundwater Authority $12,338 $12,708 $13,078 $13,448 $12,829 Glenn County $12,338 $12,708 $13,078 $13,448 $12,829
Reclamation District 1004 $12,338 $12,708 $13,078 $13,448 $12,829 Reclamation District 2106 $12,338 $12,708 $13,078 $13,448 $12,829 Richvale Irrigation District $12,338 $12,708 $13,078 $13,448 $12,829 Western Canal Water District $12,338 $12,708 $13,078 $13,448 $12,829 Butte Subbasin Regional Cost Sharing Total $135,713 $139,784 $143,855 $147,927 $141,120 Butte Subbasin GSA FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Biggs-West Gridley Water District $11,500 $11,845 $12,190 $12,535 $11,958 Butte County $15,098 $15,551 $16,004 $16,457 $15,700
Butte Water District $12,208 $12,574 $12,940 $13,307 $12,694 City of Biggs $11,134 $11,468 $11,802 $12,136 $11,578
City of Gridley $11,243 $11,580 $11,918 $12,255 $11,691 Colusa Groundwater Authority $11,585 $11,933 $12,280 $12,628 $12,047 Glenn County $11,419 $11,762 $12,104 $12,447 $11,874
Reclamation District 1004 $12,172 $12,537 $12,902 $13,267 $12,656 Reclamation District 2106 $16,309 $16,798 $17,287 $17,776 $16,958 Richvale Irrigation District $11,258 $11,596 $11,934 $12,272 $11,707 Western Canal Water District $11,786 $12,140 $12,494 $12,847 $12,256 Butte Subbasin Regional Cost Sharing Total $135,713 $139,784 $143,855 $147,927 $141,120 Butte Subbasin GSA FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Biggs-West Gridley Water District $11,081 $11,414 $11,746 $12,078 $11,523 Butte County $16,479 $16,973 $17,467 $17,962 $17,135
Butte Water District $12,143 $12,507 $12,872 $13,236 $12,627 City of Biggs $10,532 $10,848 $11,164 $11,480 $10,952
City of Gridley $10,696 $11,017 $11,338 $11,659 $11,122 Colusa Groundwater Authority $11,209 $11,546 $11,882 $12,218 $11,656 Glenn County $10,960 $11,289 $11,617 $11,946 $11,397
Reclamation District 1004 $12,089 $12,451 $12,814 $13,176 $12,570 Reclamation District 2106 $18,294 $18,843 $19,392 $19,941 $19,023 Richvale Irrigation District $10,719 $11,040 $11,362 $11,683 $11,146 Western Canal Water District $11,511 $11,856 $12,202 $12,547 $11,970 Butte Subbasin Regional Cost Sharing Total $135,713 $139,784 $143,855 $147,927 $141,120 Butte Subbasin GSA FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 Biggs-West Gridley Water District $10,662 $10,982 $11,302 $11,622 $11,087 Butte County $17,859 $18,395 $18,930 $19,466 $18,570
Butte Water District $12,078 $12,441 $12,803 $13,165 $12,560 City of Biggs $9,931 $10,229 $10,527 $10,824 $10,326
City of Gridley $10,149 $10,453 $10,758 $11,062 $10,553 Colusa Groundwater Authority $10,833 $11,158 $11,483 $11,808 $11,265 Glenn County $10,501 $10,816 $11,131 $11,446 $10,919
Reclamation District 1004 $12,005 $12,366 $12,726 $13,086 $12,484 Reclamation District 2106 $20,280 $20,888 $21,497 $22,105 $21,088 Richvale Irrigation District $10,179 $10,485 $10,790 $11,095 $10,585 Western Canal Water District $11,235 $11,572 $11,909 $12,246 $11,683 Butte Subbasin Regional Cost Sharing Total $135,713 $139,784 $143,855 $147,927 $141,120 Recommended Regional Cost Sharing Summary - Option 5 (15% Scenario) Butte Subbasin
Recommended Regional Cost Sharing Summary - Option 5 (20% Scenario) Butte Subbasin
Recommended Regional Cost Sharing Summary - Option 1
Butte Subbasin
Recommended Regional Cost Sharing Summary - Option 5 (10% Scenario) Butte Subbasin
City Council Agenda Item #6
Staff Report
Date: April 5, 2024
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Amendment of Eide Bailly’s Contract for FY 2023/2024 and Approve the Contract for FY 24/25 and FY 25/26 for Accounting Services
Recommendation
Staff respectfully requests that the Mayor and City Council approve the contract amendment for FY 2023/2024 and renew the contract for FY 2024/2025 & 2025/2026 for Eide Bailly for Accounting Services.

Background
The City of Gridley Council previously approved the consulting service contract with Eide Bailly (“EB”) in the amount not to exceed $150,000 for FY 2023-2024. Finance Staff is requesting a contract amendment to add $15,000 for a total of $165,000. EB has assisted the city with the citywide audit of FY 21/22 and 22/23. They have also provided training and have been a resource for finance staff regarding best practices in accounting. The $15,000 increase is due to the City wide audit, TDA audit, and training for finance staff. The $15,000 being requested is in case we need further assistance with ongoing projects, not necessarily that the whole $15,000 will be used by year end.

The Finance Staff is also requesting the City Council to approve the renewal of the contract with EB, for FY 24/25 & FY 25/26 in the amount not to exceed $150,000, same contract amount as the current FY. EB will continue to assist Finance staff with general accounting, audits, and continue training finance staff.

Fiscal Impact
A $15,000 dollar increase to the current budget for the amendment of the contract. FY 24/25 and 25/26 contracts will be budgeted for in the future budgets.

Attachments
City of Gridley 2023 Fee Change
City of Gridley FY 24/25 and 25/26 General Consulting Engagement Letter x Regular
Special
Closed
Emergency
April 8, 2024
City of Gridley, California
Martin Pineda, Finance Director
685 Kentucky Street
Gridley, California 959448
Thank you for giving Eide Bailly the opportunity to continue providing services to the City of Gridley (City).

Pursuant to our engagement letter dated September 5, 2023, we are notifying you that in order to complete the ad hoc accounting services related to fiscal years ended June 30, 2022, and 2023 audits, we will need to increase the total fee by $15,000 from $150,000 to $165,000.

Services are expected to be performed remotely. Where an on-site visit seems warranted, we will make every effort to accommodate it.

It is expected that the City accepts responsibility for the results of the services being provided and agrees to perform the following functions in connection with this engagement:
• Make all management decisions and perform all management functions, • Designate a competent individual to oversee the services, • Evaluate the adequacy and results of the services performed, • Accept responsibility for the results of the services, and • Establish and maintain internal controls, including monitoring ongoing activities.

We Want to Continue Working with You. We’ve developed the following proposal with the City’s needs in mind, and we’ll provide timely, personalized services for you. We’ll also get to know you and your staff and take the time to understand your specific challenges and opportunities. We pride ourselves on delivering honest and insightful advice beyond what is normally experienced in the public accounting industry. If you’re still wondering “Why Eide Bailly,” our tagline sums it up—what inspires you, inspires us. Your success is our success.

Know that you are a highly valued client. Our people would be proud to work with the City and build a trusting relationship with your team. Please contact me if you would like to discuss any aspect of this proposal.

Sincerely,
James W Ramsey, CPA, CFE
Partner
What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE April 8, 2024
City of Gridley, California
Martin Pineda, Finance Director
685 Kentucky Street
Gridley, California 959448
This letter outlines the understanding of the terms and objectives of the consulting engagement between Eide Bailly LLP (Eide Bailly) and the City of Gridley, California (you or City).

Scope of Engagement
We will work with you to provide consulting services in connection with providing ad hoc accounting services for fiscal years ended June 30, 2025, and 2026.

Our engagement will be performed under the Statements on Standards for Consulting Services issued by the American Institute of Certified Public Accountants (AICPA). We will not provide audit, review, compilation or financial statement preparation services to any historical or prospective financial information or provide attestation services under the AICPA Statements on Standards for Attestation Engagements and assume no responsibility for any such information.

You will provide us, as promptly as possible, all requested information and documentation reasonably deemed necessary or desirable by us in connection with the engagement. You represent and warrant that all information and documentation provided or to be provided to us is true, correct and complete, to the best of your knowledge and belief. We are authorized to rely upon such information and documentation without independent investigation or verification.

We may use third party service providers and/or affiliated entities (including Eide Bailly Shared Services Private Limited) (collectively, “service providers”) in order to facilitate delivering our services to you. Our use of service providers may require access to client information by the service provider. We will take reasonable precautions to determine that they have the appropriate procedures in place to prevent the unauthorized release of confidential information to others. We will remain responsible for the confidentiality of client information accessed by such service provider and any work performed by such service provider. You acknowledge that your information may be disclosed to such service providers, including those outside the United States.

We agree to retain our work papers for a period of at least eight years from the date of our report.

What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 2 Timeline
We will begin our procedures upon acceptance of this engagement agreement. We would expect to have our work completed within the agreed upon timeline for the requested projects. This timetable assumes the timely receipt of requested information and the cooperation of the parties involved. If delays are experienced in receiving information, the delivery of our work will be delayed accordingly.

Fees
Our fees are based on the amount of time required at various levels of responsibility, plus actual out-of-pocket expenses, including administrative charges. Invoices are payable upon presentation. We estimate that our fee for the engagement will not exceed $150,000 for each fiscal year. We will notify you immediately of any circumstances we encounter that could significantly affect this initial fee estimate.

Our hourly rates are based on the level of responsibility and are as follows:

The ability to perform and complete our engagement consistent with the estimated fee included above depends upon the quality of your underlying accounting records and the timeliness of your personnel in providing information and responding to our requests. To assist with this process, we will provide you with a Prepared-byClient (PBC) request that identifies the information we will require to perform our engagement, as well as a planned timeline for the engagement. A failure to provide this information in an accurate and timely manner may result in an increase in our fees and/or a delay in the completion of our engagement.

We may be requested to make certain engagement documentation available to outside parties, including regulators, pursuant to authority provided by law or regulation or applicable professional standards. If requested, access to such engagement documentation will be provided under the supervision of Eide Bailly LLP’s personnel. Furthermore, upon request, we may provide copies of selected engagement documentation to the outside party, who may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We will be compensated for any time and expenses, including time and expenses of legal counsel, we may incur in making such engagement documentation available or in conducting or responding to discovery requests or participating as a witness or otherwise in any legal, regulatory, or other proceedings as a result of our Firm’s performance of these services. You and your attorney will receive, if lawful, a copy of every subpoena we are asked to respond to on your behalf and will have the ability to control the extent of the discovery process to control the costs you may incur.

Hourly Rate by Staff Level FY 2025 FY 2026
Partner $ 371 / hr. $ 390 / hr.

Senior Manager $ 318 / hr. $ 334 / hr.

Manager $ 265 / hr. $ 278 / hr.

Senior Associate $ 217 / hr. $ 227 / hr.

Associate $ 171 / hr. $ 180 / hr.

Clerical $ 103 / hr. $ 108 / hr.
3 Should our relationship terminate before our agreed upon procedures are completed and a report issued, you will be billed for services to the date of termination. All bills are payable upon receipt. A service charge of 1% per month, which is an annual rate of 12%, will be added to all accounts unpaid 30 days after billing date. If collection action is necessary, expenses and reasonable attorney’s fees will be added to the amount due.

The City accepts responsibility for the results of the services being provided and agrees to perform the following functions in connection with this engagement:
• Make all management decisions and perform all management functions. • Designate a competent individual to oversee the services. • Evaluate the adequacy and results of the services performed. • Accept responsibility for the results of the services. • Establish and maintain internal controls, including monitoring ongoing activities.

Eide Bailly LLP has owners that are not licensed as certified public accountants as permitted under Section 5079 of the California Business Code. The nature of the services to be provided in conjunction with this engagement are such that non-licensee owners may be involved in performing our services for the City.

MEDIATION
Any disagreement, controversy or claim arising out of or related to any aspect of our services or relationship with you (hereafter a “Dispute”) shall, as a precondition to litigation in court, first be submitted to mediation. In mediation, the parties attempt to reach an amicable resolution of the Dispute with the aid of an impartial mediator. Mediation shall begin by service of a written demand. The mediator will be selected by mutual agreement. If we cannot agree on a mediator, one shall be designated by the American Arbitration Association (“AAA”). Mediation shall be conducted with the parties in person in the Sacramento office. Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the parties.

Neither party may commence a lawsuit until the mediator declares an impasse.

LIMITED INDEMNITY
Eide Bailly LLP and its partners, affiliates, officers and employees (collectively “Eide Bailly”) shall not be responsible for any misstatements in the information provided to us to complete our engagement that we may fail to detect as a result of misrepresentations or concealment of information by any of your owners, directors, officers or employees. You shall indemnify and hold Eide Bailly harmless from any claims, losses, settlements, judgments, awards, damages and attorneys’ fees arising from any such misstatement or concealment of information.

If through no fault of Eide Bailly we are named as a party to a dispute between you and a third party, you shall indemnify and hold Eide Bailly harmless against any losses, damages, settlements, judgments, awards, and the costs of litigation (including attorneys’ fees) we incur in connection with the dispute.

Eide Bailly shall not be entitled to indemnification under this agreement unless the services were performed in accordance with professional standards in all material respects. 4 LIMITATION OF LIABILITY
The exclusive remedy available to you for any alleged loss or damages arising from or related to Eide Bailly’s services or relationship with you shall be the right to pursue claims for actual damages that are directly caused by Eide Bailly’s breach of this agreement or Eide Bailly’s violation of applicable professional standards. In no event shall Eide Bailly’s aggregate liability to you exceed two times fees paid under this agreement, nor shall Eide Bailly ever be liable to you for incidental, consequential, punitive or exemplary damages, or attorneys’ fees.

TIME LIMITATION
You may not bring any legal proceeding against Eide Bailly unless it is commenced within twenty-four (24) months (“Limitation Period”) after the date when we delivered our report, return, or other deliverable under this agreement to you, regardless of whether we do other services for you or that may relate to the engagement. The Limitation Period applies and begins to run even if you have not suffered any damage or loss, or have not become aware of a possible Dispute.

GOVERNING LAW AND VENUE
Any Dispute between us, including any Dispute related to the engagement contemplated by this agreement, shall be governed by California law. Any unresolved Dispute shall be submitted to a federal or state court located in Sacramento, California.

ASSIGNMENTS PROHIBITED
You shall not assign, sell, barter or transfer any legal rights, causes of actions, claims or disputes you may have against Eide Bailly to any person.

Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the arrangements for our engagement including our respective responsibilities.

We appreciate the opportunity to be of service to you and look forward to working with you and your staff.

Respectfully,
James W Ramsey, CPA, CFE
Partner
5 *************************************************************** RESPONSE:

This letter correctly sets forth our understanding.

Acknowledged and agreed on behalf of the City of Gridley, California by:

Name: _______________________________________________________________ Title: ________________________________________________________________ Date: ________________________________________________________________

City Council Agenda Item #7
Staff Report
Date: April 15, 2024
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Code Enforcement and Abatement of Nuisance Properties Recommendation
Staff respectfully requests the City Council discuss and provide direction to the City Staff to pursue allowable abatement processes for nuisance properties.

Background
Previously in a city council meeting, the city’s code enforcement officer provided a verbal report and presentation of abatement status, properties of concern and described the abatement strategies. Two specific properties were noted as serious structural hazards to the health and safety code that are in the city.

On an annual basis the city addresses through the code enforcement process violations such as overgrown grass, illegal dumping, buildings with dry rot, deteriorated fencing and other nuisances which could negatively impact the public health, safety, and welfare. In some cases, some cities experience having properties that have been abandoned and generally result in code enforcement taking additional efforts to ensure municipal code violations to include dangerous building and fire code violations are abated. The matter is handled through an administrative process by where code enforcement issues property owner’s administrative citations directing owners to remediate or remove the code violations on their property and/or pay fines. The city may obtain an Inspection and Abatement Warrant to resolve the violation itself and some of those measures are quite effective.

However, when those efforts are not met with a resolution, the city must seek other alternatives to ensure the safety of nuisance properties that endanger neighborhoods, decrease property values, and cause the public to lose confidence in their city leadership. The alternatives may result in additional costs utilizing vital municipal resources. The California legislature has provided a way to address issues cities have with severe nuisance properties by means of the California Health and Safety “H&S” Code 17980.6 and 17980.7, known as Health and Safety Receiverships and this allows for the abatement of nuisance properties that have not responded to previous efforts. Staff would respectfully request the City Council allow for further discussion and direction to address those properties which normal code enforcement efforts have not resolve the issues.

Financial Impact
The item is presented to the Council for discussion and direction, there is no fiscal impact currently. City staff will address impact in a future session based on the direction received.

X Regular
Special
Closed
Emergency