Agenda packet — Gustine City Council, October 1, 2024 (part 2 of 2)

Parcel for which building permits had not been issued prior to January 1 of the prior Fiscal Year. The Acreage that is considered Developed Property shall be allocated between Residential Property and Non-Residential Property based on the site plan. The Maximum Special Tax that can be levied on such Assessor's Parcel shall be the sum of the Maximum Special Tax that can be levied on each type of Developed Property located on that Assessor's Parcel.
c. Increase in the Maximum Special Tax

2. On each July 1, commencing on July 1, 2026, the Maximum Annual Special Tax shall be increased by the positive percentage increase in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year.

Undeveloped Property
The Special Tax shall not be levied on Undeveloped Property.

D. APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2025-2026 and for each following Fiscal Year, the Council shall levy the Special Tax so that the amount of the Special Tax equals the lesser of the Special Tax Requirement or the Maximum Annual Special Tax. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Annual Special Tax.

To the extent that the Special Tax Requirement is greater than the aggregate Maximum Annual Special Tax, the Special Tax collected shall first be allocated to pay Administrative Expenses and then to pay for Authorized Services. In no event shall the Special Tax proposed for any Assessor's Parcel in any Fiscal Year exceed the Maximum Special Tax applicable for such Fiscal Year.

Notwithstanding the above, pursuant to Section 53321 (d) (3) of the California Government Code, under no circumstances shall the Special Tax levied in any Fiscal Year against any Assessor's Parcel in CFO No. 2024-1 for which an occupancy permit for private residential use has been issued be increased as a consequence of delinquency or default by the owner or owners of any other Assessor's Parcel(s) within CFO No. 2024-1 by more than 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Special Tax on Assessor's Parcels of residential property is limited by the provision in the previous sentence, the levy of the Special Tax on all of the Assessor's Parcels of nonresidential property within CFO No. 2024-1 shall continue to increase in equal percentages at up to 100% of the Maximum Special Tax.

E. EXEMPTIONS
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The Special Tax shall not be levied on Property Owner Association Property, Public Property, or Welfare Exemption Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property, Public Property, or Welfare Exemption Property, its tax-exempt status will be revoked.

F. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2024-1 may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act.

H. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement.

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0 ITEM NO. 11

COUNCIL AGENDA ITEM
OCTOBER 1, 2024
PREPARED BY: City Attorney, Best Best & Krieger LLP
SUBJECT: Proceedings to Establish Future Annexation to Proposed City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services)

BACKGROUND
New development within the City is required to mitigate their impacts on City services and facilities. One mechanism to assist developers in meeting these obligations is to authorize funding mechanisms, such as a community facilities district (CFD). A CFO is a taxing district formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, California Government Code Section 53311 et seq. ("Act"), which, when authorized, imposes special taxes upon taxable property to pay for the costs of authorized services and facilities.

Prior to this agenda item, the City Council considered a resolution of intention to establish the City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services) to address the need to provide funding for the continued demand for additional municipal services associated with new development and population growth. The CFO is proposed to assist in funding various services including without limitation public safety, storm water, and park maintenance services related to future development throughout the community. Concurrent with establishing the CFO, the City wishes to develop a mechanism to annex additional property to the CFO as those projects begin development.

DISCUSSION
The City has recognized the need for new development to be fiscally neutral and to pay for all facilities and services necessary to serve the needs imposed by such new development. The requirements to mitigate such impacts are often met through conditions of approval or other development conditions.

The City is in the process of establishing the CFD for the initial property owner Ron Katakis, the owner and developer of Assessor Parcel Numbers (APNs): 063-180-029 and 063-180-030 (the "Formation Property") which requested the formation of the proposed CFO to fund the additional municipal services.

It is anticipated that additional property will annex into the CFO at a future date.

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Adoption of the attached resolution begins the process of the City annexing the additional properties as needed. The future property expected to annex into CFO includes, but is not limited to, APNs: 063-180-032 and 063-180-033 (the "Future Annexation Property"). The territory within the proposed CFO encompasses currently vacant and undeveloped properties within the City.

Approval of the resolution described above is the first step to establishing the proposed future annexation to the CFO for all Future Annexation Property. Establishing the ability to annex Future Annexation Property this evening will reduce the administrative burden on the City, City Counsel, and property owners wishing to develop in the City. The administrative burden is reduced because the Act which usually requires two meetings of the City Council(e.g. a resolution of intention meeting and then a second meeting to hold the public hearing) may be reduced to one meeting pursuant to Section 53339 of the Act. The City can eliminate the need to hold the public hearing upon adopting the future annexation procedures. Instead, with the unanimous consent of the owner or owners of any parcel proposed for annexation, the City can adopt a single resolution approving each annexation.

The final steps for establishing the future annexation to the CFO will occur at the City Council meeting on November 5, 2024. The Mayor and the City Council will conduct a public hearing on such day and, following the public hearing may adopt a resolution to form the future annexation area of the CFO. As noted above, however, the future annexation area will not be annexed until a later date, upon unanimous consent of the owners of the property within such area.

FISCAL IMPACT
None at this time, the future costs of annexing property to the CFO will be paid from property owner deposits collected from future annexation property.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the lead agency, determined that the resolution is not subject to CEQA pursuant to Sections l 5060(c)(2), l 5060(c)(3), and 15061 (b) (3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a "project" as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

RECOMMENDATION
It is recommended that Council consider adopting a resolution declaring intention to annex territory in the future to the City of Gustine Community Facilities District No. 2024-1 (Public Safety and Storm Water and Parks Maintenance Services) and taking other related actions.

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EXHIBIT(S)
A) Resolution
B) Authorized Services of the CFO
C) Rate and Method of Apportionment for the CFO
D) Proposed Boundary Map of the CFO
I .,...cY.~ - ) L�-
APPROVED BY: · ----S-ok -n i ro
-rn -Tha-n, -Ci-ty M-an-ag-
er

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RESOLUTION 2024-XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUSTINE, CALIFORNIA,

DECLARING INTENTION TO ANNEX TERRITORY IN THE FUTURE TO THE CITY OF GUSTINE COMMUNITY FACILITIES DISTRICT NO. 2024-1 (PUBLIC SAFETY AND

STORM WATER AND PARKS MAINTENANCE SERVICES), COUNTY OF MERCED,

STATE OF CALIFORNIA AND TAKING OTHER RELATED ACTIONS THERETO WHEREAS, the City Council (the "City Council") of the City of Gustine (the "City") desires to provide the authorization to annex territory in the future to a community facilities district pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), and specifically Article 3.5 thereof. The community facilities district has been designated as the "City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services), County of Merced, State of California" (the "CFD"); and
WHEREAS, it is determined to be within the public interest and convenience to establish a procedure to allow and provide for future annexations to the CFD and further to specify the amount of special tax that would be levied and set forth the terms and conditions for certification of any annexation in the future; and WHEREAS, the territory proposed to be annexed in the future shall be known and designated as the "Future Annexation Area to City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services), County of Merced, State of California" (the "Future Annexation Area"), and a map designated as "Proposed Boundaries of City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services), County of Merced, State of California" showing the territory proposed to be annexed in the future is on file in the Office of the City Clerk and shall be kept with the transcript of these proceedings and attached hereto as Exhibit "C" and is incorporated herein by this reference.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gustine does hereby resolve, declare, and determine as follows:

1. Recitals. The above recitals are all true and correct and are incorporated herein by this reference.

2. Authorization. These proceedings for future annexations are authorized and initiated by this legislative body pursuant to the authorization of the Act and specifically Section 53339.2 of the Government Code of the State of California.

3. Public Convenience and Necessity. This City Council hereby determines that the public convenience and necessity requires a procedure to allow and authorize territory to be annexed in the future to the CFD in order to finance the costs and expenses for the authorized services.

4. Boundaries of the CFD and Territory Proposed to be Annexed in the Future. A general description of the territory included in the CFD, including a description of the 28859.00030\42661612. l

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boundaries and territory proposed to be annexed in the future, is hereinafter described as follows:

All that property and territory as previously included within the CFD and all that property described as the "Future
Annexation Area", as said property is shown on a map
designated as "Proposed Boundaries of City of Gustine
Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services), County of
Merced, State of California," a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection.

Future annexation proceedings may only be completed with the unanimous consent of the owner or owners of any parcel proposed for annexation.

5. Name of the CFD and Future Annexation Area. The name of the CFD is "City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services), County of Merced, State of California" and the designation for the Future Annexation Area shall be "Future Annexation Area, City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services), County of Merced, State of California."

6. Authorized Services. The types of services to be financed from the levy of the special tax in the CFO, including the Future Annexation Area, are those described in Exhibit "A" attached hereto which is incorporated herein by this reference ("Authorized Services").

The Authorized Services to be financed by the levy of special taxes to be levied on specific territory within the Future Annexation Area to be annexed to the CFD may include some or all of such Authorized Services or may include alternatives to the Authorized Services.

The Authorized Services shall to the maximum extent practicable, taking into account budgetary and operational demands of the City, be provided in common within the CFD and the Future Annexation Area.

The City Council finds that the Authorized Services described in this Section 6 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the CFD and the Future Annexation Area.

7. Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to finance the Authorized Services (the "Special Tax") to be provided in the territory of the Future Annexation Area upon the annexation of such territory to the CFD and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in the Future Annexation Area that annexes to the CFD, will be levied annually within the 28859.00030\42661612. l

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boundaries of the territory within the Future Annexation Area upon the annexation of such territory to the CFD. For further particulars as to the rates and method of apportionment of the proposed Special Tax, reference is made to the attached and incorporated Exhibit "B" (the "Rate and Method"), which sets forth in sufficient detail the rate and method of apportionment of the Special Tax to allow each landowner or resident within the territory in the proposed Future Annexation Area to clearly estimate the maximum amount of the Special Tax that such person will have to pay for the Authorized Services upon the annexation of such territory to the CFD. The Special Tax may not be prepaid.

Notwithstanding the foregoing, if the actual cost of providing Authorized Services within any territory within the proposed Future Annexation Area is higher or lower than the cost of providing such services within the existing CFD, a higher or lower special tax may be levied within such territory subject to the unanimous approval and election of the owner or owners of such territory. In any such circumstance, the Rate and Method may be revised to reflect the higher or lower special tax, as applicable.

The Special Tax herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner as this City Council or its designee shall determine, including direct billing of the affected property owners.

Such Special Tax shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any Special Tax that may not be collected on the County tax roll shall be collected through a direct billing procedure by the City.

Pursuant to Government Code Section 53340 and except as provided in Government Code Section 53317.3, properties of entities of the state, federal, and local governments shall be exempt from the levy of the Special Tax.

8. Effective Date of Future Annexation. Annexation of territory in the future shall be effective upon the unanimous approval and election of the owner or owners of any such parcel authorizing the levy of the Special Tax upon such parcel following the annexation of such parcel to the CFD, and no further public hearings or additional proceedings will be required to accomplish such annexation.

9. Public Hearing. Notice is given that on November 5, 2024, at 6:30 PM, in the regular meeting place of the City Council being the City Council Chamber located at 352 5 Street, Gustine, California, 95322 a public hearing will be held where this City Council will consider the annexation of certain territory in the future to the CFD, the proposed Rate and Method of Apportionment of the Special Tax to be levied within said proposed Future Annexation Area and all other matters as set forth in this Resolution of Intention. Any interested persons may appear and be heard, and written protests shall be filed on or before the time fixed for the public hearing.

10. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 28859.00030\42661612. I

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of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing.

11. Effective Date. This resolution shall become effective upon its adoption.

THE FOREGOING RESOLUTION of the City Council of the City of Gustine was passed at a regular meeting held on the l·day of October, 2024, the resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

Patrick Nagy, Mayor
City of Gustine
ATTEST:

Melanie Correa, Deputy City Clerk
City of Gustine
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EXHIBIT "B"

CITY OF GUSTINE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY AND STORMWATER AND PARKS MAINTENANCE SERVICES) Authorized Services
The City of Gustine (the "City") is establishing the City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services), County of Merced, State of California (the "CFD") to finance, in whole or in part, the following services ("services" shall have the meaning given to that term in the Mello-Roos Community Facilities Act of 1982 (the "Act")) which include administration expenses and collection for reserves. All services to be funded by the CFO are to be in addition to those provided before the CFO was created, and may not supplant services already available when the CFO was created.

Authorized Services:

The types of City services to be financed by the CFD ("Services") shall include all services authorized under section 53313 of the Act, including without limitation, police protection services, fire protection and suppression services, maintenance of streets and roadways, maintenance and operation of street lights, parks, parkways and open space, graffiti removal, the operation and maintenance of storm drainage systems, and any other services authorized to be financed pursuant to the Act, including any incidental expenses, and any other miscellaneous or incidental services identified by the City necessary to provide the described Services herein.

Administrative Expenses:

In addition, the following costs will also be funded by the special taxes levied within the CFO.

1. Administrative Expenses including costs incurred to determine, levy and collect the special taxes, including compensation of City employees for administrative work performed in relation to the CFO and a proportionate amount of the City's general administrative overhead related thereto, the fees of consultants and legal counsel, the costs of collecting installments of the special taxes upon the general tax rolls, preparation of required reports, and any other costs incurred for the administration of the CFO by the City;

2. Any amounts needed for operating reserves and capital replacement reserves; and

3. Any amounts needed to cure actual or estimated delinquencies in special taxes for the current or previous fiscal years.

A-1
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EXHIBIT "C"

RATE AND METHOD OF APPORTIONMENT FOR

CITY OF GUSTINE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY AND STORMWATER AND PARKS MAINTENANCE SERVICES) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services) ("CFD No. 2024-1") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the CFD Administrator, according to the method of apportionment set forth herein. All of the real property in CFD No. 2024-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. All Special Taxes collected hereunder shall only be used for the Special Tax Requirement, as hereinafter defined, and for no other purpose.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2024-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 2024-1 or any designee thereof of complying with City or CFD No. 2024-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2024-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third-party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2024-1 for any other administrative purposes of CFD No. 2024-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of property due to delinquent Special Taxes. "Assessor's Parcel" means any real property to which an Assessor's parcel number is assigned as shown on an Assessor's Parcel Map.
"Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's parcel number.

B-1
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"Authorized Services" means the services provided by the City including (i) maintenance and lighting of parks, parkways, streets, roads, and open space, (ii) graffiti removal, (iii) fire protection and suppression services, (iv) police protection services, and (v) any other services authorized to be financed pursuant to the Act. "Central California Irrigation District" means the Central California Irrigation District. "CFD Administrator" means the official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2024-1" means the City of Gustine Community Facilities District No. 2024-1 (Public Safety and Stormwater and Parks Maintenance Services). "City" means the City of Gustine.
"Consumer Price Index" means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Urban Consumers" in the San Francisco - Oakland - Hayward Area, measured as of the end of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the San Francisco -- Oakland - Hayward Area. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2024-1.
"County" means the County of Merced.
"Developed Property" means, for each Fiscal Year, all Taxable Property for which a building permit for the construction of one or more new residential dwelling units or for a non-residential use was issued after January 1, 2024 and on or before January 1 preceding the Fiscal Year in which the Special Tax is being levied (i.e., a building permit for new construction issued prior to January 1, 2025 would be considered Developed Property beginning in Fiscal Year 2025-2026).
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the land use classes listed in Table 1 below. "Maximum Annual Special Tax" means the Maximum Annual Special Tax, determined in accordance with Section C.1 below, that can be levied in any Fiscal Year on any Assessor's Parcel of Developed Property within CFD No. 2024-1.

B-2
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"Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) was issued for a non-residential use. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2024-1 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Assessor's Parcels of Developed Property, except to the extent that the Special Tax levy on Developed Property is limited as described in Section D below.
"Public Property" means, for each Fiscal Year, (i) any property within the boundaries of CFO No. 2024-1 that was owned by or irrevocably offered for dedication to the federal government, the State, the City, Central California Irrigation District, or any other public agency as of January 1 of the previous Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use; and (ii) any property within the boundaries of CFO No. 2024-1 that was encumbered, as of January 1 of the previous Fiscal Year, by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
"Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units.
"Special Tax" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFO No. 2024-1 to: (i) pay for Authorized Services; (ii) pay for Administrative Expenses as determined by the CFO Administrator; (iii) pay for reasonably anticipated Special Tax delinquencies based upon the historical delinquency rate for CFO No. 2024-1; less (iv) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFO No. 2024-1 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B-3
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"Welfare Exemption Property" means, for each Fiscal Year, an Assessor's Parcel that is (a) receiving a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County's assessor's roll finalized as of January 1 of the previous Fiscal Year, and (b) exempt from the Special Tax pursuant to Section 53340(c) of the Act.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFO No. 2024-1 shall be classified as Developed Property or Undeveloped Property and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

Developed Property shall be further classified as Residential Property or Non-Residential Property. The Maximum Annual Special Tax for Residential Property shall be based on the number of dwelling units located on such Assessor's Parcel. The Maximum Special Tax for Non-Residential Property shall be based on the Acreage of such Assessor's Parcel.

C. MAXIMUM ANNUAL SPECIAL TAX

1. Developed Property
a. Maximum Special Tax
The Fiscal Year 2025-2026 Maximum Annual Special Tax is shown below in Table

1. Table 1
Maximum Annual Special Tax
for Developed Property
Land Use Class
Fiscal Year 2025-2026
Maximum Special Tax
Residential Property $1,352 per unit
Non-Residential Property $6,000 per Acre
b. Multiple Land Use Classes
In some instances an Assessor's Parcel may contain both Undeveloped Property and Developed Property. Furthermore, Developed Property may contain more than one Land Use Class.

B-4
28859.00030\42661612. l

Page 145 of 177 ends

In such cases, the Acreage of the Assessor's Parcel shall be allocated between Developed Property and Undeveloped Property based on the portion of the Assessor's Parcel for which building permits had been issued prior to January 1 of the prior Fiscal Year and the portion of the Assessor's Parcel for which building permits had not been issued prior to January 1 of the prior Fiscal Year. The Acreage that is considered Developed Property shall be allocated between Residential Property and Non-Residential Property based on the site plan. The Maximum Special Tax that can be levied on such Assessor's Parcel shall be the sum of the Maximum Special Tax that can be levied on each type of Developed Property located on that Assessor's Parcel.
c. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026, the Maximum Annual Special Tax shall be increased by the positive percentage increase in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year.

2. Undeveloped Property
The Special Tax shall not be levied on Undeveloped Property.

Page 146 of 177 ends

Tax on Assessor's Parcels of residential property is limited by the provision in the previous sentence, the levy of the Special Tax on all of the Assessor's Parcels of non-residential property within CFD No. 2024-1 shall continue to increase in equal percentages at up to 100% of the Maximum Special Tax.

E. EXEMPTIONS
The Special Tax shall not be levied on Property Owner Association Property, Public Property, or Welfare Exemption Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property, Public Property, or Welfare Exemption Property, its tax-exempt status will be revoked.

Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad va/orem property taxes; provided, however, that CFD No. 2024-1 may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act.

H. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement.

B-6
28859.00030\4266 l 612.1

Page 147 of 177 ends

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ITEM NO. 12

COUNCIL AGENDA ITEM
OCTOBER 1, 2024
PREPARED BY: Soknirorn Than, City Manager
SUBJECT: Discussion of Projects and Appointment of Delegates to Attend the 2025 MCAG One Voice Trip and Identify Potential Priorities

BACKROUND/ DISCUSSION
The next Merced County Association of Governments (MCAG) One Voice Washington DC trip has been scheduled for May 13-16, 2025. The One Voice trip is a County- wide lobbying mission for grants, federal funding, and new or amended legislation. The City has participated annually, along with the other cities in Merced County. The trip includes numerous meetings with legislators and federal agencies to discuss issues of regional importance to the County.

MCAG has reached out to participating agencies to advise that due to feedback from past delegations, the planning process of the trip will start earlier, in October, 2024.

Below is a draft calendar for this year program:
• October 1, 2024: Deadline for submission of 2025 policy priorities. o Note that MCAG will bring 2024 program priorities/projects forward unless changed by TRB members.
• December 2, 2024: Deadline for submission of delegate agreements. • December 12, 2024: Orientation for new One Voice delegates (held via Zoom] • January 9, 2025: Delegation meeting- review jurisdictions' proposed regional policy/project priorities, review federal policy opportunities including community project funding process (held via Zoom]
• January 30, 2025: Delegation meeting -finalize regional policy/project priorities and learn about jurisdictions' local community project funding request submissions (held via Zoom]
• January 31, 2025: Deadline for jurisdictions to submit all necessary data and photos for the finalization of the 2025 leave-behind document. • February 13, 2025: Delegation meeting (if needed) -finalize regional policy /project priorities (Zoom]
• February 28, 2025: Deadline for jurisdictions to submit delegate fee(s). • March 20, 2025: Governing Board takes action to adopt Policy Platform. • March 27, 2025: Delegation meeting-receive updates from Washington D.C. and prepare for meetings with policymakers
• April 24, 2025: Strike Team meetings
• May 8, 2025: Delegation meeting - large group practice session to prepare for meetings with policymakers
• May 13-16, 2025: One Voice trip to Washington D.C.

Page 149 of 177 ends

This administrative item is intended to allow for Council to discuss and provide direction on which member(s) would be interested in attending the trip this year to represent the City. Traditionally, one to two delegates have been selected (usually one Council member and a staff member or two Council members). This year, MCAG is requesting to have at least one of the delegates to be a senior city staff. The costs for two attendees are budgeted for in the FY 2024-25 operating budget.

Prior delegations from the City have secured contacts with the Federal agencies such as the FAA which was instrumental in obtaining approval for the demolition of the dilapidated hangers at the airport. In the last visit, the delegates were successful in advocating for funding for our lead line inventory for the City through the RWQCB.

Secondly, staff would like to get direction from Council on policies and priorities that the Council would like the delegate to bring to the table for this trip. Below is a suggested list of priorities that Council could select from:

Funding for swimming pool rehabilitation and ADA upgrade, and public facility upgrades (to include: Gustine Museum, Goman Center, City rental facilities)
Funding for water and sewer infrastructure upgrades
Funding for public safety staffing and equipment needs
Funding for regional transportation needs (truck turning radius upgrades for designated truck route)
These priorities were established for 2024 trip and still remain unfunded at this time. It is worth noting that the 2025 One-Voice Trip, if successful, would secure earmark fund for Fiscal year 2026. Thus, projects need to be beyond conception and need to be ready for obligation at the time of award.

Submitting priority projects enables MCAG to plan the group's meeting schedule to incorporate the proper legislative officials and representatives.

FISCAL IMPACT
In looking at prior years travel, expenses are estimated to cost approximately $2,000 per person, which includes the delegate attendee fee, airfare, per diem, ground transportation, and lodging.

RECOMENDATION
City Council to select delegate(s) and establish priority projects for the MCAG One Voice trip in May 2025.

EXHIBIT(S)
A) Exhibit A-2024 -- One-Voice Program

Page 150 of 177 ends

. . .

MERCED COUNTY ASSOCIATION OF GOVERNMENTS

Page 151 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS I ONE VOICE· LIFTING UP RURAL CALIFORNIA

MERCED COUNTY
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Located in the rural San Joaquin Valley
of central California, Merced County is
home to a diverse population of 292,000
people and is situated in the world's
most productive agricultural area. Nine
of the nation's top ten agriculturalproducing counties are in California, with seven located in the San Joaquin Valley
including Merced County. Like every rural
community across the country, Merced
County has its own unique geography and
demographics, contributing to unique
challenges. Inflexible statutory definitions
of what it means to be 'rural' often hamper
the ability of federal agencies to direct
funds to rural communities in the way they
were intended.

The Merced County Association of
Governments (MCAG) is an association
of city and county governments working
together to address regional issues and
opportunities.

MERCED COUNTY ASSOCIATION OF GOVERNMENTS
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Sacramento
• San Francisco
MCAG's annual One Voice trip to Washington D.C. provides an opportunity for a delegation of local public representatives to meet with federal legislators and officials to advocate for legislative solutions and funding for programs and projects of regional significance. This year, these priorities include:

G REGIONAL TRANSPORTATION CONNECTIVITY

G PUBLIC SAFETY AND WELL-BEING OF OU

COMMUNITIES

G CLEAN AND SAFE WATER

Page 152 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS I ONE VOICE· LIFTING UP RURAL CALIFORNIA

REGIONAL TRANSPORTATION CONNECTIVITY
Our transportation infrastructure connects us all. In Merced County, we move a significant quantity of agricultural products from our farms to markets across the nation and the world. Therefore, we support inclusion of the Farm to Market Program in either the Farm Bill or surface transportation legislation to improve the quality of rural roads.

The most recent USDA report states that Merced County's agricultural commodities generate over $4 billion per year.

Top products sold include milk, almonds, poultry, cattle, sweet potatoes, corn, tomatoes, and vegetables. The region has several critical goods movement corridors (most notably 1-5 and SR-99) that carry the highest volumes of trucks within the San Joaquin Valley. However, there are also many corridors and local roads that, though carrying smaller total volumes of trucks, are still vital to the region's goods movement. While some farms experience higher seasonal traffic some, like dairies, must transport their products off site every day, causing significant strain on frequently traveled roadways, reducing the pavement's lifespan. A roadway carrying 500 of these trucks a day is comparable to 5 million car trips per day. And by 2040, many of the region's main truck routes are projected to carry demand that exceeds their capacity- and to operate in a congested manner, despite programmed improvements. It is crucial that all of these corridors are maintained at a level where the safe, efficient movement of goods is possible. o
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We also support funding for critical goods movement
corridors such as the Atwater-Merced Expressway and
State Route 59.

The Atwater-Merced Expressway Phase 1B provides
a direct connection between State Route 99, Castle
Commerce Center, and the University of California
Merced. Completion of this multi-phase expressway
will lead to future economic development of Castle
Commerce Center, North Atwater, and North Merced.

Phase lA was completed in 2016, costing $66 million,
including $19 million from MCAG impact fees and
regional transportation funds, and $47 million for
construction from California's 2006 bond. Phase lB
would extend the expressway over Santa Fe Avenue and
the Burlington-Northern Santa Fe railroad tracks and
into Castle Commerce Center. Castle Commerce Center
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is used for vehicle testing, with major car manufacturers testing autonomous technology, safety features, and
other advancements. This project has secured all
necessary CEQA review and clearance. If additional
funding is obtained in the amount of $16,570,000, the
Project will extend to Franklin Road.

State Route 59 (SR 59) is a vital thoroughfare within
Merced County for residents and a crucial truck
route for local businesses which transport a number
of agricultural goods to market. The City of Merced
requires a strategic expansion of this highway - which
is designated a Federal Aid Secondary Route on the
California Freeway and Express System - from a twolane configuration to a four-lane thoroughfare. Central to this work is the comprehensive replacement and
enlargement of two bridges crossing Black Rascal Creek.

The community stands to gain significantly from this
endeavor through reduced congestion, enhanced travel
reliability, shorter commute times, improved freight
logistics, lower emissions, decreased fuel consumption, and heightened productivity and economic growth.

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Regional Transportation Connectivity continued on next page

Page 153 of 177 ends

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The City of Atwater is also pursuing the rehabilitation of four miles of a regional thoroughfare. J7, or Santa Fe Avenue, is recognized on the National Highway system
as a transportation corridor that connects the Northwest portion of Merced County to the City of Atwater and City of Merced. Due to the recent storms that the County
of Merced and surrounding areas experienced in late
2022 and early 2023, several miles of this transportation corridor road surfaces deteriorated significantly and are in need of repair.

Santa Fe Avenue - Atwater
Our smaller communities such as Dos Palos also
struggle to link their residents together and would
benefit tremendously from a rural set-aside for the
Bridge Improvement Program and other bridge funding
programs. Many small bridges within this City, such as
the Center Avenue and Golden Gate Avenue bridges,
were built in the 1970s and are dilapidated to the point of needing to be replaced entirely. These projects cost $3 million each but are essential to providing a connecting path from residential areas to the downtown core.

Golden Gate Avenue Bridge - Dos Palos
The Merced County region also supports alternative
transportation modes including funding for passenger
rail planning and facilities as well as increased and
improved Section 5311 transit funding.

Public transit is a critical component of Merced County's transportation landscape. Central to this is FTA 5311
funding for the Yosemite Area Regional Transportation
System (YARTS). YARTS is the nation's oldest public
transit system providing service to a National Park. With more than 20 years of history, YARTS is the product of
a partnership among the member counties of its Joint
Powers Authority, the U.S. Forest Service, and the National Park Service. Today, YARTS provides coach transit service on each of the four state highways into Yosemite during the summer months, and year round on Highway 140.

Currently, there are insufficient federal funding streams to support YARTS and the service expansion needed
to address the growing congestion issues in Yosemite
National Park. In order to sustain the service into the future, YARTS needs to be a direct recipient of the FTA 5311f program for the operation and maintenance of
services and a direct recipient of FTA 5311 program funds for capital replacement.

The City of Merced is poised to become the hub for the
statewide passenger rail system as three major services will converge there: Amtrak San Joaquins, Altamont
Corridor Express (ACE), and California's High-Speed Rail service. By connecting in Merced, these three services
work together as one comprehensive service, providing
cross platform connections to destinations throughout
the San Joaquin Valley, the Bay Area, the Sacramento
Valley, and, in the future, to Antelope Valley, the Inland Empire, and Greater Los Angeles area.

Page 154 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS I ONE VOICE·LIFTINGUPRURALCALIF0RNIA legend
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Los Banos Municipal Airport
Finally, our rural airports play a significant role in the fabric of our region but have become swallowed up by
our growing towns. Therefore, we support increased
funding for rural airport projects that improve the
safety of their neighboring communities.

The City of Los Banos is eagerly seeking support for the development of a new airport because of the current
site's dangerously close proximity to 15 schools. In
addition, the existing airport's infrastructure has aged to the point where all facilities have reached the end of their useful life. A new site has been selected outside of the city limits and provides benefits to aviation such as infrastructure improvements, opportunity for larger
and safer facilities, improved parking and hangars,
better wind coverage, and clear, obstacle free zones.

Passenger Rail Plan - Downtown Merced
A new layover and maintenance facility will be constructed near the station in Merced, west of State Route 59.

This facility will service ACE and San Joaquins trains and could be potentially used to service high-speed trains as well.

The Altamont Corridor Express (ACE) Ceres-Merced Extension (Project) would support the extension of ACE service from the City of Ceres to the City of Merced. This includes potential stations in both the Cities of Atwater and/or Livingston. Funding for these projects is needed to cover construction of a platform, parking upgrades, and other amenities.

In the long term, the San Joaquins and ACE will terminate at the new Merced Station being constructed to serve high speed rail service. To allow this, the Merced lntermodal Track Connector (MITC) will provide an aerial connection between the new station downtown to the BNSF Railway. The San Joaquins will also have access to ACE right-of-way to provide service to new stations in the South Bay Area.

Page 155 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS I ONE VOICE· LIFTING UP RURAL CALIFORNIA

LBLIC SAFETY AND WELL-BEING
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The safety and well-being of the residents of our rural region is paramount. Yet, too often there are inadequate resources available to support this most basic principle.

When people are in trouble, we must be able to respond.

Therefore, we support increased funding for FEMA's
SAFER Grant to improve staffing at our fire stations.

Staffing is a prime concern for the Merced County
Fire Department. In 2023, its 20 stations responded to
12,384 incidents, covering a wide range of emergencies
such as fires, hazardous material incidents, technical
rescues, and medical emergencies. The department,
which operates on a two-shift rotation, with each shift led by two battalion chiefs overseeing 35 personnel,
is challenged by OSHA's two in, two out requirements
during critical early stages of fires. The County is
submitting a $3.5 million application for SAFER funding this year in order to fund the State staffing requirements.

Improving the well-being of rural California also means addressing shortages of adequate housing stock and
high rates of homelessness. Merced County, its six cities, and the Continuum of Care have made great strides
to address homelessness in recent years, including
temporary sheltering with access to services, outreach
and engagement, transitional housing, long-term
supportive housing, and system supports to coordinate
these activities. In 2021, Merced County opened its
"Navigation Center," which is a 15,000 square-foot
facility that serves as a low-barrier emergency sheltering option with on-site supportive services for individuals currently residing in public spaces and other areas not suitable for human habitation. But more solutions are
needed. This is why we are asking our federal partners to properly fund and staff regional Veterans Affairs offices in order to utilize existing HUD-VASH vouchers and
support federal funding for homelessness prevention
by adequately funding The Housing Choice Voucher
program.

FREEWAY

Page 156 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS ] ONE VOICE • LIFTING UP RURAL CALIFORNIA ex
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Proposed Rec-Plex - Livingston
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The City of Livingston is currently categorized as a
disadvantaged community and has a small amount of
available resources and a limited tax base to use for
funding. However, as a City with a population of 14,000 it does not qualify for many federal funding programs
that are essential to improving its community facilities.

During community wide meetings, residents noted the
lack of publicly accessible community space and the
need for more indoor facilities. With 82% of Livingston residents living in poverty, the community demonstrates an exceptional need for social services and publicly
available space for this to occur. In response to this need, the City applied for, and was awarded, a Prop 68 grant
to construct a 2-acres Livingston Rec-Plex but needs
additional funding to bring the project to fruition. The project would re-purpose an existing vacant structure
for indoor activities such as basketball, fitness classes, job training, a kitchen space to allow for the preparation of free or subsidized meals, and a safe space for students to gather after school. The Livingston Farmers Association warehouse will be converted to a new Rec-Plex
Finally, in order for rural California to benefit from
federal programs we support increased funding for
USDA community facilities grants for rural communities
and increase the population threshold from 10,000 to
20,000 for disadvantaged communities.

Page 157 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS I ONE VOICE· LIFTING UP RURAL CALIFORNIA

CLEAN AIND SAFE WATER
We support increased funding for the state clean water and state drinking water revolving funds as well as legislation to increase the population threshold from 10,000 to 20,000 for USDA Rural Utilities Service Water and Environmental Programs for disadvantaged communities. ·
Regional Wastewater Treatment Plant - Atwater
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The City of Atwater is seeking funding to expand its current Regional Wastewater Treatment Plant from a 6 million gallon a day plant to an 8 million gallon a day plant. The expansion of the Wastewater Treatment Plant will help the City meet future housing requirements and provide capacity for continued economic growth and development within the City of Atwater, Community of Winton, and the Castle Commerce Center. .
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Page 158 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS I ONE VOICE·LIFTINGUPRURALCALIF0RNIA The City of Livingston (population 14,000) is planning to construct two new wells, one of which (Well 19) will have well head TCP treatment, and two new centralized treatment facilities to remove TCP from the groundwater. The Centralized Facilities will also include water storage tanks and Booster Pumps.

Water Treatment Facility - Livingston
The City of Dos Palos Wastewater Treatment Facility is in need of upgrades and additions to be able to handle its current, and future, volume of customers. Items that need to be addressed include: ponds, aeration basins, sludge pit, and the main building. The current facility does not meet energy standards and does not have a functioning lab to adequately test the wastewater.

Waste Water Treatment Facility - Dos Palos
Clean and Safe Water continued on next page

Page 159 of 177 ends

MERCED COUNTY ASSOCIATION OF GOVERNMENTS I ONE VOICE· LIFTING UP RURAL CALIFORNIA The City of Gustine is applying for funding to replace large swatchs of water distribution infrastructure throughout the community, based off a lead inventory report.
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Galvanized Service Line
Residential Service Line that is being
choked off due to severe corrosion. The
corrosion is resulting in water pressure
issues to the consumer.

Galvanized service lines are no longer
industry standard due to their corrosion
susceptibility.

The City is unsure what the inventory
count is on galvanized lines, and could
benefit from funding to inventory these
deficient lines.

Lead Water Pipe
This line was replaced from a residential
service area on 1st Ave, Gustine.

This pipe was servicing a residential
customer, who was reporting severe water
discoloration, and "soot". The City worked
to replace this lead pipe with polyethylene
pipe, the newest industry standard.

The City does not have any inventory on
lead service lines and valves within the
City. Funding to inventory these highly
deteriorated lines would benefit the
City immensely.

Old Isolation Valve
A heavily deteriorated isolation valve. The valve, due to deterioration, gets stuck either open or closed, eliminating the purposes of an isolation valve, and limiting the City's ability to narrow down shut off areas to smaller areas.

Lead Service
A deteriorated lead line servicing off the City's main line.

Page 160 of 177 ends

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Bear Creek Restoration Project
Bear Creek - Merced
The restoration of Bear Creek holds significance in enhancing its ecological functionality and fostering recreational opportunities for residents, including walkers, runners, and cyclists. Moreover, the project aligns with broader efforts to safeguard water resources vital to the region's economic vitality. The potential of the project to amplify creek access, connect community parks and recreational trails, and foster environmental stewardship within neighboring communities was highlighted.

The City of Merced is requesting
support for the permitting
process associated with the
Bear Creek Restoration project.

This project, supported by $6
million in state funding, aims
to rejuvenate a 6-mile-long
stretch of Bear Creek through
the heart of the city. The project
encompasses a comprehensive
approach to environmental
rehabilitation, including
removing invasive plant species,
debris, and pollution to enhance
the habitat for indigenous flora
and fauna. Additionally, an
embankment repair initiative will
address critical areas deemed
essential for restoration and will
mitigate the impact of future
flooding events. The importance
of water issues in the Valley have
been underscored, emphasizing the critical role of rivers in sustaining agriculture, employment, and food production.

Page 161 of 177 ends

MERCED COUNTY
Supervisor Josh Pedrozo, District 2 MCAG Board chair
[email protected]
Supervisor Scott Silveira, District 5
[email protected]
Marci Barrera, Assistant Chief Executive Officer
[email protected]

CITY OF MERCED
Councilmember Sarah Boyle
[email protected]
Jennifer Flachman, Public Information Officer
[email protected]
Chris Jensen, Dir of Parks and Community Services
[email protected]

CITY OF LOS BANOS

CITY OF ATWATER
Councilmember John Cale
[email protected]
Councilmember Danny Ambriz
[email protected]
Greg Thompson, Interim City Manager
[email protected]

CITY OF LIVINGSTON
Councilmember Jason Roth
[email protected]
Councilmember Jatinder Mann
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Christopher Lopez, Interim City Manager
[email protected]

CITY OF GUSTINE

MERCED COUNTY ASSOCIATION OF GOVERNMENTS
Mayor Paul Llanez
[email protected]
Josh Pinheiro, City Manager
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Councilmember Blake Giles
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Councilmember Sherri Marsigli
[email protected]

CITY OF DOS PALO
Mayor April Hogue
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Dewayne Jones, City Manager
[email protected]

TOWNSEND PUBLIC

AFFAIRS
Ben Goldeen
[email protected]

MERCED COUNTY

ASSOCIATION OF

GOVERNENTS
Stacie Guzman, Executive Director
[email protected]
Nav Bagri, Deputy Executive Director
[email protected]
Mary-Michal Rawling, Public Affairs Manager
[email protected]
860
FOLLOW US ONLINE @MCAGMERCED
.MCAGOV.ORG NERCEO CD!INT Y ASSOC IA'IDN OS GDYERNN£MT£ ATWATER• DOS PALOS• GUSTINE• LOS BANOS• LIVINGSTON• MERCED• MERCED COUNTY

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ITEM NO. 13

COUNCIL AGENDA ITEM
OCTOBER 1, 2024
PREPARED BY: Mario Gouveia, City Engineer
SUBJECT: DISSCUSSION AND DIRECTION: 2024 CMAQ Call for Projects

BACKGROUND/DISCUSSION
The Merced County Association of Governments (MCAG) initiated a Call for Projects on August 30, 2024. MCAG is in the process of programming $8.5 million in future federal funds for the Congestion Mitigation and Air Quality (CMAQ) Program. This funding is to be awarded to member agencies based on competitively scored applications submitted to MCAG by its member agencies. MCAG provided the following tentative schedule for the Call for Projects:

Schedule:
• Application Deadline - October 11, 2024
• CMA Committee to Evaluate Applications - Week of October 28, 2023 (tentative)
• MCAG Governing Board action - November 215, 2024 (tentative) The CMAQ program's primary goals are to improve air quality and reduce congestion.

CMAQ funding is used to fund transportation projects that will contribute to the attainment or maintenance of the National Ambient Air Quality Standards for ozone, and particulate matter (both PM 10 and PM2.5).

Using the CMAQ project criteria City Staff reviewed transportation planning documents to develop potential projects that best fit the application requirements. The three projects listed below are the result of that development process.

1. Middle School Pedestrian Improvements
This project would consist of the construction of pedestrian sidewalk facilities connecting the Gustine Middle School and the Gustine Elementary School via the east side of Grove Avenue, continuing along the north side of Sullivan Road to a new crossing at the middle school, and terminating on the south side of that crossing. The project is a "quality of life" project focused on the construction of pedestrian improvements where there are still discontinuities in the City's pedestrian infrastructure.

2. 2026 Alley Paving Improvements
This project consists of paving unpaved alleyways. The full scope of which alleys will be paved is under development. The areas being evaluated for possible inclusion are:

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o The two alleyways from North Avenue to 2n Avenue and between 5th Street and West Avenue
o The alleyway from 3rd Avenue to SR-140 and between West Avenue and 7 Street
o The alleyway from 4i Avenue to SR-140 and between 6t Street and 7t Street

3. Street Sweeper Replacement
This project consists of replacing the City's existing street sweeper with a street sweeper that has cleaner emissions.

Staff is seeking direction from the Council on which project(s) to submit for this "Call for Projects".

FISCAL IMPACT
All of the federally funded projects require a local match of 11 .47%. The City can commit funds from its Measure V allocation, SB 1 allocation, or use other available local funds. The City would need to budget for the local match expenditures for any of the funded projects that receive funding.

RECOMMENDATION
Staff recommends Council hold discussion and provide direction on which project(s) of the three presented that the City will be submitting to MCAG to compete for CMAQ funding.

EXHIBIT(S)
A) Scoping Exhibit - Middle School Pedestrian Improvements B) Scoping Exhibit- 2026 Alley Paving Improvements

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ITEM NO. 14

COUNCIL AGENDA ITEM
OCTOBER 1, 2024
PREPARED BY: City Attorney, Best Best & Krieger, LLP
SUBJECT: Council to Introduce and Waive the First Reading of an Ordinance Adding Article 4 to Chapter 2 of Title 3 of the City of Gustine Municipal Code to Prohibit Encampments on Public and Private Property.

BACKGROUND/DISCUSSION
On June 28, 2024, the United States Supreme Court held that the enforcement of generally applicable laws regulating camping on public property do not constitute cruel and unusual punishment under the Eighth Amendment and that local governments can enforce criminal penalties for violations of camping ordinances when adequate shelter spaces were not available. Following this decision, local governments in California have begun to take enforcement actions against illegal camping and encampments.

Foreseeing that these statewide enforcement actions may result in the potential relocation of illegal camping and encampments to the City of Gustine and the potential significant risks to public health and safety posed by said activities, City Council has directed Staff to prepare the attached ordinance for its consideration.

This ordinance will make it unlawful and a public nuisance for any person to camp, occupy camp facilities, or use camp paraphernalia in any public property and any private property, with the exception of persons camping, occupying camp facilities, or using camp paraphernalia with the consent of the owner of the private property for no more than three consecutive nights unless a permit is obtained from the City Manager pursuant to the process outlined in the ordinance. This ordinance does not prohibit or make unlawful, activities of an owner of private property, that are normally associated with and incidental to the lawful and authorized use of private property for residential or other purposes. This ordinance also does not prohibit or make unlawful, activities of a property owner or other lawful user if such activities are expressly authorized by the City of Gustine Municipal Code or other laws, ordinances and regulations.

FISCAL IMPACT
None.

RECOMMENDATION
It is recommended that Council introduce and waive the first reading of an Ordinance Adding Article 4 to Chapter 2 of Title 3 of the City of Gustine Municipal Code to Prohibit Encampments on Public and Private Property.

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XHIBIT(S)
A)
Ordinance ,-
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APPROVED BY:

Soknirorn Than, City Manager

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ORDINANCE NO. XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GUSTINE ADDING ARTICLE 4 TO CHAPTER 2 OF TITLE 3 OF THE CITY OF GUSTINE MUNICIPAL CODE TO PROHIBIT

ENCAMPMENTS ON PUBLIC AND PRIVATE PROPERTY
WHEREAS, Chapter 2 of Title 3 of the City of Gustine Municipal Code ("Municipal Code") governs public nuisances; and
WHEREAS, Chapter 2 of Title 3 of the Municipal Code does not currently address encampments in the City of Gustine ("City") owned property and on private property; and
WHEREAS, persons erecting encampments, living in parked vehicles, and camping on property owned or controlled by the City and on private property present potential risks to the life, health, and safety of those using them, as well as to others within the City, pose risk of damage to certain environmentally sensitive areas, and inhibits the rights of others to fully use public and private areas as they are intended; and WHEREAS, examples of the potential dangers and liabilities posed by camping, the establishment of encampments, and individuals living in vehicles parked on public and private property include but are not limited to the following:
i. Improper disposal of waste into sewers/storm drains; ii. Improper storage of human waste;
iii. Use of water and storm water prevention materials from neighboring properties, without permission;
iv. Unattended or off-leash pets;
v. Accumulation of trash and/or personal belongings, resulting in impeded access to sidewalks and other public and private property; vi. Impeded traffic flows and access by emergency vehicles; vii. Theft of power from adjacent public and private properties and unsafe usage of power cords to/from RVs/campers and appliances; viii. Operations of repair business and/or use of power tools in public and private areas and around members of the public;
ix. Verbal and/or physical intimidation of others in the area; x. Prevention of parking space access and usage;
xi. Disturbance of the peace;
xii. Increased calls for services to the City's Fire Department, Police Department, and other emergency services; and

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xiii. Increased number of uncontrollable fires breaking out at or near encampments.

WHEREAS, the ability of cities to enforce city-wide camping bans were previously limited when alternative shelter was not available, pursuant in part to the decisions in Martin v. City of Boise, 920 F.3d 584 (9th Cir. 2019) and Johnson v. City of Grants Pass, 72 F.4th 868 (9th Cir. 2023); and
WHEREAS, in a 6 to 3 ruling released on June 28, 2024, the Supreme Court of the United States overturned the Ninth Circuit's decision in Johnson v. Grants Pass, holding that the enforcement of generally applicable laws regulating camping on public property do not constitute cruel and unusual punishment under the Eighth Amendment, and overturning the Ninth Circuit's decision in Martin v. Boise that prohibited local governments from enforcing criminal penalties for violations of camping ordinances when adequate shelter spaces were not available; and
WHEREAS, the City Council desires through the passage of this Ordinance to add Article 4 to Chapter 2 of Title 3 of its Municipal Code in order to regulate camping and encampment on public and private property to protect the life, health, safety, and welfare of its residents, and to protect and preserve its natural resources.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gustine:

Section 1. Recitals. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. Article 4 in Chapter 2 of Title 3 of the Gustine, California Municipal Code is hereby added in its entirety as set forth in Exhibit A, incorporated by this reference.

Section 3. CEQA Findings. The City Council finds that this ordinance is not subject to the requirements of the California Environmental Quality Act ("CEQA") because adoption of the Ordinance is not a "project" within the meaning of Section l 5378(b) (5) of the State CEQA Guidelines (organization or administrative activities of governments not a project).

Section 4. Severability. If any section, subsection, clause, or phrase in this Ordinance or the application thereof to any person or circumstances is for any reason held invalid by a court of competent jurisdiction, the validity of the remainder of this Ordinance or the application of such provisions to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases or the application thereof to any person or circumstance be held invalid.

Section 5. Publication. The City Clerk shall certify to the adoption of this ordinance and cause it, or a summary of it, to be published once within fifteen ( 15) days of adoption in a newspaper of general circulation printed and published within the City of Gustine, and shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code section 36933.

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Section 6. Effective Date. This Ordinance shall take effect and be in full force thirty (30) days after its adoption.

PASSED AND ADOPTED by the City Council of the City of Gustine this 1 51 day of
October, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Patrick Nagy, Mayor
City of Gustine
ATTEST:

Melanie Correa, Deputy City Clerk
City of Gustine

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Article 4

CAMPING AND STORAGE OF PERSONAL PROPERTY
3-2-68 - Purpose and Authority.
3-2-69 - Definitions.
3-2-70- Camping Prohibited.
3-2-71- Storage of Property Prohibited.
3-2-72- Property Removal.
3-2-73- Property Disposition.
3-2-74- Camping Permit.
3-2-75- Posting Copy of Permit.
3-2-76 - Violations.
3-2-68. Purpose and Authority.

The streets and public areas within the city should be readily accessible and available to residents and the public at large. The use of these areas for camping

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purposes or storage of personal property interferes with the rights of others to use the areas for which they were intended. Such activity can constitute a public health and safety hazard which adversely impacts neighborhoods and commercial areas. Camping on private property without the consent of the owner, proper sanitary measures and for other than a minimal duration adversely affects private property rights as well as public health, safety and welfare of the city. The purpose of this article is to maintain streets, parks and other public and private areas within the city in a clean, sanitary and accessible condition, and to adequately protect the health, safety and public welfare of the community, while recognizing that, subject to reasonable conditions, camping and camp facilities associated with special events can be beneficial to the cultural and educational climate in the city. Nothing in this article is intended to interfere with otherwise lawful and ordinary uses of public or private property.

This article is adopted consistent with the city's police power provided by Article XI, Section 7 of the State of California Constitution and is necessary to preserve the public peace, safety and general welfare of the citizens. 3-2-69. Definitions.

For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CAMP FACILITIES shall mean tents, huts or temporary shelters, and the like.

CAMP or CAMPING shall mean to pitch or occupy camp facilities, or to use camp paraphernalia to live temporarily in a camp facility or outdoors.

CAMP PARAPHERNALIA shall mean tarpaulins, cots, beds, sleeping bags, hammocks, fire stoves and similar equipment.

ESTABLISH shall mean setting up or moving equipment, supplies or materials onto public or private property to "camp" or operate camp facilities.

MAINTAIN shall mean keeping or permitting equipment, supplies or materials to remain on public or private property in order to camp or operate camp facilities.

OPERATE shall mean participating or assisting in establishing or maintaining a camp or camp facility.

PARK shall mean any public space designated as a park by the City of Gustine.

PERSONAL EFFECTS shall mean important documents such as birth certificate or driver's license, medication, eye glasses or other medical devices, a sanitary and non-verminous sleeping bag or bed roll, tents in usable and reasonably good condition, clean and non-verminous clothing stored in a manner protecting it

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from the elements, and personal property which would have obvious sentimental or monetary value to a reasonable person.

PERSONAL PROPERTY shall mean property that is movable, as opposed to real property or real estate.

PRIVATE PROPERTY shall mean all private property including, but not limited to, streets, sidewalk, alleys, and improved or unimproved land.

PUBLIC PROPERTY shall mean all public property including, but not limited to, streets, sidewalks, alleys, improved or unimproved land and parks.

STORE shall mean to keep, put aside or accumulate for future use when needed.

STREET shall mean all alleys, lanes, courts, boulevards, public ways, public squares, public places and sidewalks.
3-2-70. Camping Prohibited.

It is unlawful and a public nuisance for any person to camp, occupy camp facilities, or use camp paraphernalia in the following areas:
(A} Any public property; or
(B) Any private property.
l. It is not intended by this section to prohibit overnight camping on private residential property by friends or family of the property owner, so long as the owner consents and the overnight camping is limited to not more than three consecutive nights, unless a permit is obtained pursuant to Section 3-2-74 of this article for a period of more than three consecutive nights.

2. Nothing in this article is intended to prohibit or make unlawful, activities of an owner of private property, or other lawful user of private property, that are normally associated with and incidental to the lawful and authorized use of private property for residential or other purposes; and provided further, nothing is intended to prohibit or make unlawful, activities of a property owner or other lawful user if such activities are expressly authorized by this code or other laws, ordinances and regulations.

3. The City Manager, or his or her designee, may, as provided in Section 3-2-7 4 of this article, issue a temporary permit to allow camping on public or private property in connection with a special event or to allow overnight camping on private residential property that will be more than three consecutive nights.

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3-2-71. Storage of Property Prohibited.

It is unlawful and a public nuisance for any person to store personal property, including camp paraphernalia, in the following areas, except as otherwise provided by resolution of the City Council:
(A) Any public property; or
() Any private property without the written consent of the owner. 3-2-72. Property Removal.

Any city law enforcement officer or code enforcement officer may remove personal property unlawfully stored as follows:
(A) The location of any personal property, including camp facilities and paraphernalia, shall be tagged and dated with a notice including the following:

It is illegal to store personal property in a city park, street, public parking lot, or public area, improved or unimproved and on private property without the written consent of the owner of that property. If this personal property is not removed by (specify at least forty-eight (48) hours from posting), THIS PERSONAL PROPERTY SHALL BE DEEMED

INTENTIONALLY ABANDONED AND SUBJECT TO REMOVAL AND
POSSIBLE DESTRUCTION. Remaining on the property after the date specified in this notice may cause further law enforcement action.

Shelter is available at the following locations:
(list shelters in local area)
(B) The city law enforcement officer or code enforcement officer may remove any personal property still unlawfully stored or remaining after the posting period has expired, but shall leave a written notice at the location of confiscation confirming that a seizure has occurred pursuant to this article, and providing instructions on how to claim the property.
3-2-73. Property Disposition.
(A) 1 . Following removal of unlawfully stored or remaining personal effects pursuant to Section 3-2-72 of this article, a city law enforcement officer or code enforcement officer shall:
(a) Maintain an inventory identifying the personal effects, where the personal effects were approximately located, and the reasonable value of each item;

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(b} Place the removed personal effects in containers labeled in a manner facilitating identification by the enforcement officer and owner and which reasonably protect such property from damage or theft; and (c) Store removed personal effects in an area designated by the enforcement officer for a period of 90 days in accordance with Cal. Civil Code §§ 2080 et seq. (as amended), and shall, to the extent reasonably practical, and without any duty to investigate the recommended storage parameters, properly store perishable items such as medication.

2. Any personal property or personal effects which a city law enforcement officer or code enforcement officer deems to be biohazardous or contaminated with a hazardous material including, but not limited to, items with feces, urine, fungus or vermin infestation, will be photographed but shall not be stored pursuant to this section and shall be properly disposed of. (B) If personal effects are claimed within 90 days from removal, unless the property is connected to a crime or is illegal to possess, a city law enforcement officer or code enforcement officer shall release the stored property to the owner upon his or her identification of the property, and the approximate location where the property was left by the owner.
(C) Unlawfully stored or found personal effects pursuant to this article remaining unclaimed at the end of 90 days from removal shall be disposed of pursuant to Cal. Civil Code§§ 2080 et seq. (as amended), and may be sold at a public auction, dedicated for public use, or given for charitable use to a local nonprofit agency by the city.
3-2-74. Camping Permit.

The City Manager may, in his or her discretion, issue a permit to establish, maintain, and operate a camp or a camp facility in connection with a special event or to allow overnight camping on private residential property that will be more than three consecutive nights. A special event is intended to include, but not be limited to, programs operated by youth or school events, marathons or other sporting events and scouting activities. The City Manager may consult with various city departments, the health officer and the public prior to issuing any temporary permit. Each department or person consulted may provide comments regarding any health, safety or public welfare concerns, and provide recommendations pertaining to the issuance, denial or conditioning of the permit. A reasonable fee, to be set by the City Council, shall be paid in advance by the applicant. The fee shall be returned if the application is denied. In exercising his or her discretion to issue a temporary permit, the City Manager may consider any facts or evidence bearing on the sanitary, health, safety and welfare

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conditions on or surrounding the area or tract of land upon which the proposed temporary camp or camp facility is to be located.
3-2-75. Posting Copy of Permit.

It is unlawful for any person to establish, maintain, conduct, or carry on any camp or camp facility unless there shall be at all times, posted in a conspicuous place upon the area or tract of land upon which the camp or camp facility is located, a permit obtained from the City Manager in accordance with the provisions of section 3-2-74 of this article.
3-2-76. Violations.

A violation of this section may be prosecuted criminally as an infraction in accordance with section 1-1-7 of this code and/or administratively as provided in Chapter 7.

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Gustine City CouncilOctober 1, 2024

Gustine City Council
October 1, 2024