CITY OF ATWATER CITY COUNCIL AND SUCCESSOR AGENCY TO THE ATWATER REDEVELOPMENT AGENCY AGENDA. Council Chambers 750 Bellevue Road Atwater, California

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1 CITY OF ATWATER CITY COUNCIL AND SUCCESSOR AGENCY TO THE ATWATER REDEVELOPMENT AGENCY AGENDA January 23, 2017 Council Chambers 750 Bellevue Road Atwater, California REGULAR SESSION: (Council Chambers) 6:00 PM CALL TO ORDER: PLEDGE OF ALLEGIANCE TO THE FLAG: INVOCATION: Invocation by Police Chaplain Mead ROLL CALL: (City Council/Governing Board) Creighton, Raymond, Vierra, Vineyard, Price MAYOR OR CITY ATTORNEY REPORT OUT FROM CLOSED SESSION: SUBSEQUENT NEED ITEMS: (The City Clerk shall announce any requests for items requiring immediate action subsequent to the posting of the agenda. Subsequent need items require a two-thirds vote of the members of the City Council present at the meeting.) APPROVAL OF AGENDA AS POSTED OR AS AMENDED: (This is the time for the City Council to remove items from the agenda or to change the order of the agenda.) Staff s Recommendation: Motion to approve agenda as posted or as amended. COMMENTS FROM THE PUBLIC: NOTICE TO THE PUBLIC At this time any person may comment on any item which is not on the agenda. Please state your name and address for the record. Action will not be taken on an item that is not on the agenda. If it requires action, it will be referred to staff and/or placed on a future agenda. To comment on an item that is on the agenda, please wait until the item is read for consideration; please limit comments to a maximum of five (5) minutes.

2 City Council and Successor Agency to ARA Agenda for Meeting of January 23, 2017 Page 2 Civility is expected from members of the public during the meeting. For more efficient use of time, disruptive behavior will not be tolerated. While you may not agree with what an individual is saying, please treat everyone with courtesy and respect. PRESENTATIONS: 1. Castle Reuse Plan (Mark Hendrickson, Merced County Director of Community and Economic Development) 2. Fiscal Year 2016/17 Financial Update (Finance Director Deol) 3. Financial Recovery Plan (Interim City Manager McBride) Staff s Recommendation: That the City Council, by motion, provide staff with direction regarding the financial recovery plan. 4. Restructuring CalPERS Side Fund Benefit Pension Options (Eric Scriven, Principal, NHA Advisors, LLC) CONSENT CALENDAR: WARRANTS: 5. January 23, 2017 MINUTES: (City Council) Staff s Recommendation: That the City Council, by motion, provide staff with direction regarding restructuring CalPERS Side Fund Benefit Options. Staff s Recommendation: Approval of warrants as listed. 6. a) Regular meeting, December 12, 2016 b) Special meeting, December 15, 2016 c) Special meeting, January 5, 2017 RESOLUTIONS: NOTICE TO THE PUBLIC Background information has been provided on all matters listed under the Consent Calendar, and these items are considered to be routine. All items under the Consent Calendar are normally approved by one motion. If discussion is requested on any item, that item will be removed from the Consent Calendar for separate action. Staff s Recommendation: Approval of minutes as listed. 7. Authorizing Transfer of property located at Manuel Bairos Park to the Atwater Elementary School District (Interim City Manager McBride)

3 City Council and Successor Agency to ARA Agenda for Meeting of January 23, 2017 Page 3 AGREEMENTS: Staff s Recommendation: Adoption of Resolution No authorizing the transfer of a portion of Manuel Bairos Park to the Atwater Elementary School District for the expansion of Peggy Heller School. 8. Ratifying Side Letter Agreement with Atwater Police Officers Association (Interim City Manager McBride) Staff s Recommendation: Adoption of Resolution No ratifying Side Letter of Agreement with Atwater Police Officers Association (APOA), and authorizing and directing the City Manager to execute the agreement, in a form approved by the City Attorney, on behalf of the City. AWARD/REJECTION OF BIDS: 9. Awarding contract for the purchase of Wheel Loader (Interim City Manager McBride) Staff s Recommendation: Awards a contract, in a form approved by the City Attorney, for the purchase of a new Title 23, Tier 4 Wheel Loader, City Project No , Bid Call No to Papé Machinery Inc., French Camp, California in the amount of $173,870.50; and authorizes the City Manager or his designee to execute the contract agreement on behalf of the City. 10. Awarding contract for the purchase of Tractor Loader (Interim City Manager McBride) Staff s Recommendation: Awards a contract, in a form approved by the City Attorney, for the purchase of a new Title 23, Tier 4 Tractor Loader, City Project No , Bid Call No to Papé Machinery Inc., French Camp, California in the amount of $94,794.73; and authorizes the City Manager or his designee to execute the contract agreement on behalf of the City. 11. Rejecting bids for the purchase of two (2) Dump Trucks (Interim City Manager McBride) Staff s Recommendation: Rejects all bids from Bid Call No , Project No , Two (2) Title 23, Tier 4 Dump Truck Replacement Project; and approves specifications and authorizes advertising Bid Call No , Two (2) Title 23, Tier 4 Dump Truck Replacement Project, Re-Bid.

4 City Council and Successor Agency to ARA Agenda for Meeting of January 23, 2017 Page 4 PUBLIC IMPROVEMENTS: 12. Accepting Broadway Revitalization and Pedestrian Safety Improvement Project as complete (Interim City Manager McBride) Staff s Recommendation: Acceptance of work done under contract for construction of Broadway Streetscape revitalization and Pedestrian Safety Improvement Project, Project No. 14-8, Bid Call No ; authorizes the City Manager to sign a Notice of Completion and have it recorded on behalf of the City; and authorizes a final payment in the amount of $43, FUNDING AND BUDGET MATTERS: 13. Treasurer s Report for the months of November, 2016 and December, 2016 (City Treasurer Heller) Staff s Recommendation: Motion to approve the Treasurer s Report for the months of November, 2016 and December, 2016; or Motion to approve staff s recommendation as presented. REPORTS AND PRESENTATIONS FROM STAFF: 14. Adopting Recognized Obligation Payment Schedule and Administrative Budget for Fiscal Year (Executive Director McBride) Staff s Recommendation: Motion to adopt Resolution No. SA adopting the Recognized Obligation Payment Schedule for the July 1, 2017 through June 30, 2018 period and adopting the Administrative Budget for Fiscal Year ; or Motion to approve staff s recommendation as presented. 15. Authorizing contract with Rosenow Spevacek Group Inc. for Successor Agency Consulting Services for Fiscal Year (Executive Director McBride) Staff s Recommendation: Motion to approve a proposal for professional services, in a form to be approved by the City Attorney, with Rosenow Spevacek Group Inc. (RSG) to perform services to the Successor Agency to the Atwater Redevelopment Agency (Successor Agency) for Fiscal Year , and to transmit the consulting services proposal to the Oversight Board for their consideration and possible action; or Motion to approve staff s recommendation as presented.

5 City Council and Successor Agency to ARA Agenda for Meeting of January 23, 2017 Page Verbal update on proposed Measure H expenditures (Finance Director Deol) CITY COUNCIL MATTERS: 17. City Council comments CLOSED SESSION: Continuation of Closed Session if necessary ADJOURNMENT: CERTIFICATION: I, Don Hyler III, City Clerk/Secretary of the City of Atwater, do hereby certify that a copy of the foregoing agenda was posted at City Hall a minimum of 72 hours prior to the meeting. DON HYLER III CITY CLERK SB 343 NOTICE In accordance with California Government Code Section , any writing or document that is a public record, relates to an open session agenda item and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the office of the City Clerk at City Hall during normal business hours at 750 Bellevue Road. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda at 750 Bellevue Road. In compliance with the Federal Americans with Disabilities Act of 1990, upon request, the agenda can be provided in an alternative format to accommodate special needs. If you require special accommodations to participate in a City Council, Commission, or Committee meeting due to a disability, please contact the City Clerk s Office a minimum of three (3) business days in advance of the meeting at You may also send the request by to jdelreal@atwater.org. In compliance with the Federal Americans with Disabilities Act of 1990, upon request, the agenda can be provided in an alternative format to accommodate special needs. If you require special accommodations to participate in a City Council, Commission, or Committee meeting due to a disability, please contact the City Clerk s Office a minimum of three (3) business days in advance of the meeting at

6 ~ January 2017 ~ Sunday Monday Tuesday Wednesday Thursday Friday New Year's Day City Holiday New Year's City Hall closed Saturday City Council Meeting - 6:00 PM City Hall closed City Holiday Community Development Martin Luther King, Jr. Day & Resources Commission City Hall closed Observed Meeting - 6:00 PM Trash pick up delayed 1 day Audit & Finance Merced County District 3 Committee Meeting - Supervisor McDaniel City Hall closed 4:00 PM "Mobile" Office Hours - City Council Meeting - 1:30-3:30 PM 6:00 PM Notes:

7 ~ February 2017 ~ Sunday Monday Tuesday Wednesday Thursday Friday Saturday City Hall closed City Hall closed Special City Council Community Development Meeting - 4:00 PM & Resources Commission City Hall closed Tentative Meeting - 6:00 PM City Council Meeting - 6:00 PM City Holiday Merced County District 3 President's Day Supervisor McDaniel City Hall closed Observed "Mobile" Office Hours - Trash pick up delayed 1:30-3:30 PM 1 day Notes: Audit & Finance Committee Meeting - 4:00 PM City Council Meeting - 6:00 PM

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13 FINANCIAL RECOVERY PLAN January 23, 2017

14 BACKGROUND In 2012 the Municipal Resource Group (MRG) prepared a Fiscal Sustainability Report for the City. The report reviewed several critical areas; Sanitation Fund Water Fund

15 MRG RECOMMENDATIONS Strategic Realignment of Services Contracting Develop & Utilize a financial forecasting model Prepare Timely Annual Audits Document Loans between Funds Document Transfers between Funds in Budget Evaluate Financial Condition of other City Funds Recover Full Costs of providing Services

16 MRG RECOMMENDATIONS GENERAL FUND Restore a balance Budget each fiscal year Work to restore Fund Balance and Reserves Renegotiate Property Tax Sharing Agreement with Merced County Negotiate modifications to labor contracts Reduce non personnel costs Fire Protection Contract Enhance Business License Renewals Collect Fund Account Receivables Sales Tax Measure (Measure H)

17 MRG RECOMMENDATIONS SANITATION FUND Restore self-supporting status Fee increases Franchise fee for collection services Transfer sanitation billing services

18 MRG RECOMMENDATIONS WATER FUND Restore self-supporting status Fee increases Collection of accounts receivable

19 PAST ACTIONS - ACCOMPLISHMENTS The City Council with support from the community implemented many actions to restore fiscal sustainability; Measure H sales tax to support public safety Adopted internal loan documents and setup payment schedules for all intra fund loans Created tiered retirement and health programs for employees Temporary Public Safety furloughs and concessions

20 ADDITIONAL PAST ACTIONS Cost recovery and miscellaneous fee increases Employee attrition especially in areas Contracting for services when possible Reallocation of expenses when and where possible Implemented rate increases in enterprise funds Sanitation Franchise Fee

21 WHERE ARE WE NOW?

22 WHERE ARE WE NOW? Slow Recovery Has Begun Property/Sales Tax Revenues Increasing Increased Development Activity Inter-Fund Loan Repayments are ongoing Enterprise Funds Self-Supporting

23 WHERE ARE WE NOW? Fully Committed Measure H Funds Drawdown of Gas Tax Funds Negative Fund Balance in Increasing Demand for Services

24 CHALLENGES AHEAD

25 SIGNIFICANT CHALLENGES AHEAD Enterprise Funds Measure H Fund Gas Tax Fund

26 ENTERPRISE FUNDS Water, Wastewater, and Sanitation Funds must continue to generate sufficient revenue to cover operating/capital costs Periodic Rate Studies to ensure revenues are sufficient for needs Maintain Loan Repayments Plan for future needs master plan updates Implement capital projects to maintain services

27 MEASURE H FUND Projected Operating Shortfall in Each of Next Five Years expenditures projected to exceed revenues in each fiscal year Draw Down of Reserves Measure H Fund could be in Deficit Position by FY

28 GAS TAX FUND Operating Shortfall in Each of the last Five Years Reserves may be depleted in FY Measure V may be a substitute to provide for maintenance and reconstruction of roads 16

29 GENERAL FUND FORECAST Slow Economic Recovery Expenditures Outpacing Revenues On-going Negative Fund Balance

30 FUND BALANCE Fund Balance (June 30, 2016) (- $2.8) million Minimum Target Fund Balance + $2.1 million Atwater Below Minimum Target Level By $4.9 million

31 POSSIBLE ACTION TO BE TAKEN

32 FINANCIAL ISSUES WORKSHOP The Atwater City Council held a Financial Issues Workshop on January 5, 2017 The meeting was facilitated by Carol Whiteside with California Strategies LLC. The Purpose was to; Provide accurate information on the financial situation Receive information on departmental needs and issues Review issues that contributed to the current situation Collect ideas and options to improve the financial condition

33 FUND MODELS & NOTES Several fund models showing the impacts of some larger possible decisions were used to project where funds would be over a five year term. The models were intended to provide a broad picture but also show the magnitude of some specific items. They included CALPERS Restructuring vs. no restructure, retaining Furloughs vs. eliminating, and City County Property Tax Sharing Agreement.

34 FUND MODELS & NOTES Five total models shown for the Only one model showed a positive Fund Balance by it included retaining furloughs in non public safety areas, restructuring CALPERS, restructuring the City County Property Tax Sharing Agreement, and maintaining current staffing including keeping two current director positions vacant All models and full presentation are located on City Web Site

35 NOTES FROM FINANCIAL ADVISORS Cost to Eliminate Furloughs = $568,118 projected over next 5 years Savings from CALPERS Re-Structuring = $3.4M over next 5 years All Budgeted Revenues Must Be Collected can t absorb additional losses Cannot Support Additional Costs Increased Staffing Coverage of Other Fund Shortfalls

36 ACTION PLAN The City Council and Staff suggested many ideas which were catalogued as action or needing more study. The ideas also had priorities assigned to them. This plan is intended to set policy as well as provide guidance and direction. Implementation of the actions will be done based on requirements specific to the action. That may include City Council approvals, City Manager or Department responsibility, etc. Subsequent actions will be taken as necessary. The plan should be reviewed and updated periodically to address any changes in the financial condition of the City.

37 ACTION PLAN Restructure CAL PERS Side Fund Amend Property Tax Sharing Agreement with Merced County Retain Furloughs Tow Yard needs to be operational Encourage new businesses & consider incentives Provide Financial Updates clear and accurate information Freeze Vacant Unfilled Positions in problem fund areas

38 ACTION PLAN Sale of WWTP Property excess property Advertise Marketing the City Network with other Cities best practices Legislative Analyst Assistance Reduce Manage Overtime Recover Costs building permit fees and CIP projects Seek Grant Funding Block Grants as an example Concessions across the board from city employees Reopen Employee Contract Agreements Balance Gas Tax Fund by transferring positions to work in Maintenance Districts

39 ACTION PLAN Measure H Extension Enforce Fees collect fees Evaluate switching utility providers make up for solar cost increase Business and Developer Incentives Utilize Interns Contract Services Volunteers to run recreation programs Consider city wide lighting district Prop 64 Opportunities Reduce Animal Shelter Costs

40 ACTION PLAN Seek donations from businesses In House Fire Plan Check when trained and capable Community Facilities Districts Growth in the City Dole County Area Park street sweeper during non essential times Increase temporary car sales attract more auto sales Seek additional investment returns rate of return Internal Investigations by trained employees reduces attorney costs Use Technology to reduce costs PD and other areas District Election Costs General Plan Update Review Internal Cost Allocations IT Services RFP Audit Services RFP

41 QUESTIONS?

42 WARRANTS SUMMARY FOR JANUARY 23,20T7 TOTAL OF WARRANTS (FROM WARRANT REPORT) ADDTTTONAL WARRANTS (THESE AMOUNTS ARE NOT TNCLUDED rn TOTAL WARRANTS) s 466, DATE DESCRIPTION Prewrittens included in this current warrant run tl5/2ol7 PERS Retirement EFT L2/t5/t6 - L2/28/L6 t/5/2o77 PERS Health - JANUARY 2016 AMOUNT (s16,755.59) 543, s109, TOTAL ADDITIONAL WARRANTS 5136,37o.67 GRAND TOTAL OF WARRANTS PAID ======================================================================= S602, TNFORMATTONAL ONLY ( TNCLUDED tn THE TOTAL WARRANTS TOTAL) DATE DESCRIPTION 12/28/2ot6 Net Payroll L2/28/2O76 Federal Taxes 12/28/2ot6 State Taxes AMOUNT 556, S66,616.s7 TotalPayroll S6,8to.oz S3, t/s/20l7 Net Payroll L/5/20t7 Federal Taxes tl5l20l7 State Taxes!/5/2oL7 Payroll Deductions 5135, ]-92, Total Payroll S50, s6, , TOTAL I N FORMATIONAL WARRANTS s26t,l23.36 CITY TR RER

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44 Accounts Payable Checks for Approval User: jdaniel P inted: llis/201'l - 1:46 PM [uùçr AðW"ter rf0 BdÞìftÆ Rßd" ffür# ca s6301 Check Number Check Date Fund N me Account Name Vendor Name Void Amount t/ r/09120r7 01/09120r7 Intemal Service Fund Intemal Service Fund Water Enterprise Fund Special Departmental Expense Special Departmental Expense Special Departmental Expense WINTONHARDWARE WINTONHARDWARE WINTONHARDWARE t/09t2017 Miscellaneous Union Dues AFSCME DISTRICT COUNCIL t09/2017 0t/09t201'1 Gamishments Gamishments FRANCHISETAX BOARD FRANCHISETAX BOARD t t/09t2017 Pre-Paid Legal PRE-PAID LEGAL SERVICES t/09/2017 General Fuud Gamishments STATE DISBURSEMENT IJNIT 977.O U09t2017 Deferred Compensation VANTAGEPOINT TRANSFER AGT-457 s r/09/20t7 Section 125 Medical Deposits Section 125 SAMUELBURRIS l/09/201'1 Training CITYOF FRESNO 3'72.O U09/201',7 Training DARTN JANTZ U09/2017 Contracted Recreation Fees KIDTIME FITNESS 5, AP-Checks forapproval (lll8l20l7-1:46 PM) Page 1

45 Check Number Cheek Date Fund Name Account Name Vendor Name Void Amount 5, t/o Mens Fall Slo-Pitch Ball URBAN ILLUSTRATORS t t t 6948r l 6948 I 6948 I t/ U09/ /20r7 0t/09/ /09t2017 0r/ t/09/201'7 01/ I/ t/09/201' /20t' 0r/09/20t7 01/09/2017 0r/09t2017 Intemal Service Fund Gas Tax,/Street Improvement Gene al Fund Gene al Fund Water Enterprise Fund Risk Management Fund Cornmunications Special Departmental Expense Uniform & Clothing Expens: Offrce Supplies Special Departmental Expense Travel\Conferences\ùf e etings Girls Volleyball Special Departmental Expense Communications Special Departmental Expense Training Special Deparhnental Expen;e Special Departmental Expenre Special Departmental Expense WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK WESTAMERICABANK , s t , Report Total: 16, AP-Checks for Approval (lll8l20l7 - l:46 PM) Page2

46 Accounts Payable Checks for Approval User: jdaniel Printed: I/ l:47 PM A'ii{äter Camrltrr tnúiv Pritc Clt_v ll"idc ïs0 Hkvrfì FßãJ" Atr ãßf çå9faç1 Check Number Check Date Fund Name Account Name Vendor Name Void Amount /201'7 Community Center BARBARA RIIS CHRISTENSEN I/23/2017 Gene al Fund Training ACEC CALIFORNIA l / Sanitation Enterprise Solid Waste CollectrVDisposal ALLIED WASTE SERVICES # ,449;71 01/231201'l Employee Benefits Fund Health Insurance, Retirees AMERICAN REPUBLIC 203, s48s/ 0u231201'1 Special Departmental Expense LUCYARMSTRONG s48/ U23/ /20t'7 0t/23/20r7 0U23/20t /20t7 0l/23/ /20t7 0t/23/20t7 Northwood Village LD Water Enterprise Fund Water Enterprise Fund Sewer Enterprise Fund Intemal Service Fund Communications Communications Communications Communications Communications Communications Communications Special Departmental Expense AI and T AT andt AT andt AT andt AT andt AT and T AT and T AT andt I12.01 Ú0.67 1, I , , e48/ o1/2f12017 Special Departmental Expense ATWATER CHIROPRACTIC, INC. 6,49s s48/ 01/ Office Supplies BEST IMPRESSION PRINTING ,**/ o1/ Special Departmental Expense BETTER DEAL PRINTING CENCAL l0 AP-Checks forapproval ( :47 PM) Page I

47 Check Number Check Date Fund Name Account Name Vendor Name Void Amount /23t2017 Adult Slo-Pitch Softball BOLLINGER INSURANCE t/23/ t23/2017 0r/23120r7 01/ t/23t2017 Gene al Fund Water Enterprise Fund Sewer Enterprise Fund Travel\Conferences\Meetings Travel\Conferences\Meetings Travel\Conferences\ùÍeetings Travel\Conferences\Meetings T avel\conferences\meetings CALIFORNIA STRATEGIES, LLC CALIFORNIA STRATEGIES, LLC CALIFORMA STRATEGIES, LLC CALIFORNIA STRATEGIES, LLC CALIFORNIA STRATEGIES, LLC , /23/2017 0t/231201'1 Community Center Community Center CASTLE FAMILYHEALTH CENTERS INC. CASTLE FAMILY HEALTH CENTERS INC s4s3/ 01/ Special Departmental Expenre CHEVRON USA TNC s4s4/ 0U23/2017 Intemal Service Fund Communications COMCASTCABLE s4ss/ 0U Special Departmental Expen ;e CREDIT BUREAU ASSOCIATES s4s6/ o1/231201'l Inspection Fees CSG CONSULTANTS, INC , s4s7/ 0U23/2017 Section 125 Medical Deposits Section 125 MATTHEWL, DELREAL Check Total 3, ;70 6s4s8/ 01/ Communications DELTAWIRELESS & NETWORK SOLUTIONS , s4se/ 01/23/2017 Professional Services DEPT. OF JUSTICE 1, ss00/ 0U23/20t7 Uniform & Clothing Expense DIAMOND PRINTS ss t/ 01/23/2017 Ferrari Ranch Project Fund Professional Services EMC PLANNING GROUP INC , AP-Checks forapproval (lll8l20l7 - l:47 PM) Page 2

48 Check Number Check Date Fund Name Account Name Vendor Name Void Amount s /23/2017 0I/23120t7 01/ t/23t201'1 0l/23120r'1 0U231201'l Gas Talr:/Street Improvement Gene al Fund Price Annexation LMA MeadowView LNDSCP Stone Creek LNDSCP Bell Crossing LNDSCP Professional Services Professional Services Professional Services Professional Services Professional Services Professional Services ENVIRONMENTAL COMPLIANCE RESOURCEI ENVIRONMENTAL COMPLIANCE RESOURCEI ENVIRONMENTAL COMPLIANCE RESOURCEI ENVIRONMENTAL COMPLIANCE RESOURCEI ENVIRONMENTAL COMPLIANCE RESOURCEÍ ENVIRONMENTAL COMPLIANCE RESOURCEÍ 28, , I; s s /2017 0U23/2017 0U23/2017 0U23/201'l 0U23/ r/23/20t7 01/23t /23t2017 Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund rwater Enterprise Fund Water Enteçrise Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 FERGUSON ENTERPRISES INC. #690 3, , t s2 241; , r / Water Enterprise Fund Accounts Payable BRITTNI FLORES 4, /23/2017 Girls Volleyball JOSEPHHAMMAR r U U23/20t7 Gas Tax/Street Improvement Capital Professional Services Traffrc Signal Syncbronization Check Total JLB TRAFFIC ENGINEERING, INC JLB TRAFFIC ENGINEERING, INC U23/2017 otl23l20l'l Community Center Community Cente Rental LANDMARK TABERNACLE LANDMARKTABERNACLE Check Total I 'r'*'rr',rr! 0U23/2017 Training KENNEDY LEE Check Total /23/2017 Girls Votleyball JACQUY LOPEZ AP-Checks forapproval (lll8l20l7-1:47 PM) Page 3

49 Check Number Check Date Fund Name Account Name Vendor Name Void Amount U23/2011 Girls Volleyball AMOSAM. MASANIAI I 0r123/2017 Gene al Fund Professional Services MERCED COUNTY ANIMAL CONTROL t8, l/ /2017 Building Permits sb 1473 MERCED COUNTY COMMLTNITY ACTION AGI MERCED COUNTY COMMUNITY ACTION AGF 18, t / t/23120r7 0U23/2017 0t/23/2017 ot/2f120t7 0t/23t201'1 0U23/201'1 0t/ / '7 Internal Service Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Water Enterprise Fund Sewer Enterprise Fund Special Depalmental Expense Special Departmental Expeme Special Departmental Experse Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expense Special Departmental Expenre Special Departmental Expenre MERCED COTINTY DEPT. OF PUBLIC HEALTH MERCED COTINTYDEPT. OF PUBLIC HEALTH MERCED COI.INTY DEPT. OF PUBLIC HEALTH MERCED COTINTY DEPT. OF PUBLIC HEALTH MERCED COIINTYDEPT. OF PUBLIC HEALTH MERCED COTINTYDEPT. OF PUBLIC HEALTH MERCED COUNTY DEPT. OF PUBLIC HEALTH MERCED COI'NTY DEPT. OF PUBLIC HEALTH MERCED COLINTY DEPT. OF PUBLIC HEALTH MERCED COUNTYDEPT. OF PUBLIC HEALTH t, I8t t.00 l / Memberships & Subscriptions MERCED COI.INTY LAW ENFORCEMENT CHIF 3, r ssts/ r/23/20t7 01/ Training Training MERCED COTINTY SHERRIFF'S DEPARTMENT MERCED COTINTY SHERRIFF'S DEPARTMENT sst6/ l s l /20t7 01/ /23120t7 0l/ U23/201't 01123/ / ot/ U23/201'1 0t/23/20t'7 01/23/ / ou23l20t7 Gas Tax/Street Improvement Price Annexation LD Price Annexation LMA Mello Ranch LD Mello Ranch LNDSCP Camsllia Estates LD Juniper Meadows LD Camellia Meadows LD Stone Creek LD Stone Creek LNDSCP America West LD Bell Crossing LD utiliries Utilities Utilities Utilities Utilities Utililies Utilities Utilities Utilities Utilities uriliries Utilities Utilities MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT r t AP-Checks forapproval (llt8l20l7 - l:47 PM) Page 4

50 Check Number Check Date Fund Name Account Name Vendor Name Void Amount st6 69st st t6 695 t /23/ /23t2017 0r/ t/ U23t2017 0y23/20t' 01123t /23/ /2017 0U23/201'1 Bell Crossing LNDSCP Atwater South LD Mello Ranch 2 LD MeadowView LD Aspenwood LD Applegate Ranch LD Applegate Ranch Lndscp Water Enterprise Fund Sewer Enterprise Fund Sewer Enterprise Fund Utilities Utilities Utilities Utilities Utilities Utilities utilities Utilities Utilities Utilities MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT MERCED IRRIGATION DISTRICT s2.75 t , I/23/20t7 Gene al Fund Special Departmental Expense MERCED MEDICAL SUPPLY Check Total 7, s /23t2017 0U23/20r'7 01/ / r/23120t7 Capital Capital Capital Printing & Advertising Printing & Advertising Wheel Loader Replacement Prj Tractor Loader Replacement Prj Dump Trucks Replacement (2) MERCED STIN STAR-LEGALS MERCED SIIN STAR-LEGALS MERCED SUN STAR-LEGALS MERCED SI-IN STAR-LEGALS MERCED SUN STAR-LEGALS l /231201'l 0r/23120t7 0t/231201'1 0t/23t2017 Professional Services Professional Services Professional Services Professional Services MONTE VISTA SMALL ANIMAL HOSPITAL MONTE VISTA SMALL ANIMAL HOSPITAL MONTE VISTA SMALL ANIMAL HOSPITAL MONTE VISTA SMALLANIMAL HOSPITAL U Professional Services MI.INICIPAL RESOURCE GROUP, LLC t, t, r 0 23/201'7 Professional Services MI.]NISERVICES LLC l/23/20t7 Offrce Supplies NEOFTINDS BY NEOPOST 1, r, / /23/20t7 0füce Supplies Offrce Supplies THE OFFICE CITY THE OFFICE CITY '.l I I 69s24 01/ Communications PACIFIC TELEMANAGEMENT AP-Checks forapproval (lll8l20l7-1:47 PM) Page 5

51 Check Number Check Date Fund Name Account Name Vendor Name Void Amount / Professional Services PATRICK & CO /231201'l 01/23t2017 0t/23120r7 Sewer Enterprise Fund Sewer Enterprise Fund Professional Services Professional Services P ofessional Services A.M. PECHE & ASSOC. LLC A,M. PECHE & ASSOC. LLC A.M. PECHE & ASSOC, LLC 2, t23/2017 0t/23120r'7 Special Departmental Expense Special Departmental Expense PRESTON'S LOCK & KEY PRESTON'S LOCK & KEY 3, / 69s28 01/23/2017 Professional Services PRIME SHINE, INC s U23/ /23/2017 0t/23/20r' / / U t20r7 Information Technology Fund Information Technology Fund Information Technology Fund Information Technology Fund Water Enterprise Fund Information Technology Fund Information Technology Fund Special Departmental Expense Special Departmental Expense Special Deparhnental Expense Special Departmental Expense Professional Services Special Departmental Expense Special Departmental Expense QUICKPCSUPPORT QUICKPCSUPPORT QUICKPCSUPPORT QUICKPCSUPPORT QUICKPCSUPPORT QTIICKPCSUPPORT QUICKPCSUPPORT l, , , t/23120r7 Gene al Fund Training PATRICKRADKE Check Total t 6953 I r 6953t I 6953r 0t/23/20t7 0r/ t/ U231201'1 0r/23/201'l 01/ t/23120r 'l 0l/23/2017 0t/23/20t7 01/23t /23/2017 Gene al Fund Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases Rents & Leases RAYMORGAN COMPANY RAYMORGAN COMPANY RAY MORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAY MORGAN COMPANY RAYMORGAN COMPANY RAY MORGAN COMPANY RAYMORGAN COMPANY RAY MORGAN COMPANY t AP-Checks for Approval ( :47 PM) Page 6

52 Check Number Check Date Fund Name Account Name Vendor Name Void Amount r I 6953 I 6953 I / /23t U23t201' /201'7 0U23/20t' 0U23/2017 0U23/2017 0U23120t7 Water Enterprise Fund Operations & Maintenance Operations & Maintenance Operations & Maintenance Operations & Maintenance Operations & Maintenance Operations & Maintenance Operations & Maintenance Operations & Maintenance Operations & Maintenance RAY MORGAN COMPANY RAY MORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAYMORGAN COMPANY RAY MORGAN COMPANY ' ' I , l/ t/ Gas Tax/Street Improvement Gas Tax/Street Improvement Atw Blvd Strscp-Dwntwn Sub Project Retention ROLFE CONSTRUCTION ROLFE CONSTRUCTION 3, u /231201'1 RDVLPMNT Obligation Retirement Professional Services ROSENOW SPEVACEK GROUP INC. 3, , ,tt / Professional Services SANTA FE PET s35 01/ Gas TaxlStreet Improvement Professional Services ST FRANCIS ELECTRIC 30, , s U23t ',7 0U23/201'.7 0U23/2017 0U23/20t7 0U23/2017 0U23/2017 0U23/2017 0U23/20t7 0t/ r123/20r t7 0U23/2017 0t/23/20t7 0U23/2017 0U23/2017 0t/23/20r7 0U23120t7 Special Departmental Expense Offrce Supplies Office Supplies Offrce Supplies Special Departmental Expense Special Departmenf al Expense Special Departmental Expense OfÍice Supplies Offrce Supplies Special Departmentâl Expense Special Departmental Expense Offrce Supplies Ofüce Supplies Special Departmental Expense Office Supplies Offrce Supplies Office Supplies Office Supplies STAPLES BUSINESS ADVANTAGE STAPLES BUSINES S ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINE S S ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINE S S ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE 62s t l t ' AP-Checks forapproval ( :47 PM) PageT

53 Check Number Check Date Fund Name Account Name Vendor Name Void Amount 2, ' U23/201',7 0r/23/20t"t 01/ t/ /201'1 Risk Management Fund Ferrari Ranch Project Fund Sewer Enterprise Fund Water Enterprise Fund Professional Services Professional Services Professional Services Professional Services Professional Services THOMAS H. TERPSTRA THOMAS H. TERPSTRA THOMAS H. TERPSTRA THOMAS H. TERPSTRA THOMAS H. TERPSTRA 5, , , , / Intemal Service Fund Operations & Maintenance TESEI PETROLEUM, INC. 2, ,4n / / r123/2017 0U23/2017 Water Enterprise Fund Sewer Enterprise Fund Water Enterprise Fund Sewer Enterprise Fund Professional Services Professional Services Professional Servìces Professional Services THE UPS STORE THE UPS STORE THE UPS STORE THE UPS STORE t t/23/2017 0U23/201'l Special Departmental Expen;e Special Departmental Expense TROP IY CASE TROPHYCASE ' t /23120t t2017 0Ú23/201'1 0r/23120t7 01/ t/ Risk Management Fund Risk Management Fund Risk Management Fund Risk Management Fund Risk Management Fund Risk Management Fund Disability I surance Disability Insurance Life Insurance Disability Insurance Disability Insurance Life Insurance IINUM LIFE INSURANCE TINUM LIFE INSURANCE TINUM LIFE INSURANCE IINUM LIFE INSURANCE I.INUM LIFE INSURANCE IINUM LIFE INSURANCE s ,374.3s 1, , I, , t/23/20t7 01/ Gas Tax./Street Improvement Communications Communications VERIZON WIRELESS VERIZON WIRELESS " t/23120r' Sewer Enterprise Fund Measure H Fund Communications Communications VERIZONWIRELESS VERIZON WIRELESS t/ U23/ /23/20t7 01/ t/23120t7 0U23t2017 0U23/201'1 0 23/2017 Water Enterprise Fund Gas TaxlStreet Im rovement Sewer Enterprise Fund Water Enterprise Fund Intemal Service Fund Communications Communications Communications Communications Communications Comrnunications Communications Communications VERIZON WIRELESS VERIZONMRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON TVIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZONWIRELESS l t ;73 AP-Checks forapproval (lll8l20l7-1:47 PM) Page 8

54 Check Number Check Date Fund Name Account Name Vendor Name Void Amount 6ss42/ /2017 Intemal Service Fund Communications Communications VERIZON WIRELESS VERIZON WIRELESS / / Employee Benefits Fund Employee Benefits Fund Vision Insurance Vision Insurance VISION SERVICE PLAN (CA) VISION SERVICE PLAN (CA) 1, , ,243.t / Risk Management Fund Life Insurance VOYA RETIREMENT INSURANCE s t123/20r'1 0U23120t'l 0U23/2017 Gas TaxlStreet Improvement Gas TaxlStreet Improvement Gas TaxlStreet Improvement Fruitland Ave Rd Improvements Fruitland Ave Rd Improvements Fruitland Ave Rd Improvements \ryh CONSULTING SERVICES VVH CONSULTING SERVICES VVH CONSULTING SERVICES , , , , v231201'1 Intemal Service Fund Utilities WEST COAST GAS CO. INC ss47 / /2017 0U23/2017 0U23/201'l Sewer Enterprise Fund Sanitation Enterprise Sewer Enterprise Fund Closing of WWTP Professional Services Professional Services WESTYOST & ASSOCIATES WESTYOST & ASSOCIATES WEST YOST & ASSOCIATES , , , /2017 Girls Vollevball RICHARDA. ZAMARRIPA Report Total: 449, AP-Checks forapproval ( :47 PM) Page 9

55

56 CITY OF ATWATER CITY COUNCIL ACTION MINUTES December 12, 2016 REGULAR SESSION: (Council Chambers) The City Council of the City of Atwater met in Regular Session this date at 6:09 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Mayor Price presiding. PLEDGE OF ALLEGIANCE TO THE FLAG: The Pledge of Allegiance was led by Mayor Price. INVOCATION: The Invocation was led by Police Chaplain Mead. ROLL CALL: Present: Absent: Staff Present: City Council Members Raymond, Rivero, Vineyard, Mayor Pro Tem Bergman, Mayor Price None City Manager Pietro, City Attorney Terpstra, CAL FIRE Battalion Chief Pimentel, Community Development Director McBride, Water Systems Shift Operator Vinson (representing the Public Works Department), Finance Director Deol, City Clerk Del Real, Recording Secretary Bengtson-Jennings MINUTES: (City Council) Regular meeting, November 14, 2016

57 City Council Meeting Action Minutes for December 12, 2016 Page 2 MOTION: City Council Member Vineyard moved to approve the minutes as listed. The motion was seconded by City Council Member Rivero and the vote was: Ayes: Bergman, Rivero, Raymond, Vineyard, Price; Noes: None; Absent: None. The motion passed. NOVEMBER 8, 2016 ELECTION RESULTS: Certifying the canvassing of votes in the November 2016 General Municipal Election (City Clerk Del Real) MOTION: Mayor Pro Tem Bergman moved to adopt Resolution No certifying the canvassing of votes in the November 2016 General Municipal Election. The motion was seconded by City Council Member Vineyard and the vote was: Ayes: Rivero, Raymond, Vineyard, Bergman, Price; Noes: None; Absent: None. The motion passed. OUTGOING CITY COUNCIL MEMBER COMMENTS: City Council Member Joe Rivero City Council Member Rivero thanked the Lord for all of the trying times and successes, his wife and children for their love and support, his father who taught him that hard work truly pays, his mother who taught him to never compromise values, and the residents of Atwater for their faith in his service. He spoke of several of his accomplishments that brought positive change to Atwater. And, he congratulated the newly elected officials and reminded them to keep the values of the residents of Atwater at heart. Mayor Pro Tem Larry Bergman Mayor Pro Tem Bergman thanked the citizens of Atwater for the opportunity to serve as City Council member the past four years and the newly elected City Council members for running clean campaigns. CEREMONIAL MATTERS: Presentations: Presentation of plaque to Joe Rivero for his years of service as City Council Member to the City of Atwater Mayor Price presented Joe Rivero with a plaque for his 12 years of dedicated service as City Council Member to the City of Atwater. Presentation of plaque to Larry Bergman for his years of service as Mayor Pro Tem/City Council Member to the City of Atwater

58 City Council Meeting Action Minutes for December 12, 2016 Page 3 Mayor Price presented Larry Bergman with a plaque for his 4 years of dedicated service as Mayor Pro Tem/City Council Member to the City of Atwater. Presentation of plaque to Jeanna Del Real for her years of service as City Clerk to the City of Atwater Mayor Price presented Jeanna Del Real with a plaque for her 12 years of dedicated service as City Clerk to the City of Atwater. Certificates of Appreciation were presented to Joe Rivero and Larry Bergman on behalf of House Representative Jim Costa, the County Board of Supervisors, State Senator Anthony Canella, and Assemblyman Adam Gray. PRAYER FOR EXITING CITY COUNCIL MEMBERS AND CITY CLERK: The prayer was led by Police Chaplain Mead. OATH OF OFFICE: City Council Member Paul Creighton City Council Member Cindy Vierra City Clerk Don Hyler III City Treasurer Jim Heller Mayor Price administered the oath of office to newly elected City Council Members Paul Creighton and Cindy Vierra, to newly elected City Clerk Don Hyler III, and to newly elected City Treasurer Jim Heller. RECESS TO BRIEF RECEPTION: The City Council of the City of Atwater recessed to a brief reception at 6:34 PM. RESUME REGULAR SESSION: The City Council of the City of Atwater resumed Regular Session this date at 7:06 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Mayor Price presiding. PLEDGE OF ALLEGIANCE TO THE FLAG: The Pledge of Allegiance was led by Mayor Price. INVOCATION: The Invocation was led by Police Chaplain Mead.

59 City Council Meeting Action Minutes for December 12, 2016 Page 4 ROLL CALL: Present: Absent: Staff Present: City Council Members Creighton, Raymond, Vierra, Vineyard, Mayor Price None City Manager Pietro, City Attorney Terpstra, CAL FIRE Battalion Chief Pimentel, Police Chief Joseph, Community Development Director McBride, Water Systems Shift Operator Vinson (representing the Public Works Department), Finance Director Deol, Human Resources Director Del Real, City Clerk Hyler III, Recording Secretary Bengtson-Jennings OPENING STATEMENTS FROM NEWLY ELECTED CITY COUNCIL MEMBERS: City Council Member Paul Creighton City Council Member Creighton thanked all of those who helped during his campaign, and he vowed to do his best to serve the citizens of Atwater, to help get Atwater back on the right track. City Council Member Cindy Vierra City Council Member Vierra thanked her family for their support, Joe Rivero and Larry Bergman for leaving big shoes to fill, and all of those who voted for her in the recent election. SUBSEQUENT NEED ITEMS: None. APPROVAL OF AGENDA AS POSTED OR AS AMENDED: MOTION: City Council Member Vineyard moved to approve the agenda as posted. The motion was seconded by City Council Member Creighton and the vote was: Ayes: Creighton, Raymond, Vierra, Vineyard, Price; Noes: None; Absent: None. The motion passed. CEREMONIAL MATTERS; Certificate: Local Hero Christopher Carrera, Building Maintenance Worker Mayor Price presented Christopher Carrera with a certificate of appreciation for his efforts to protect City Hall during a recent event and with a plaque in recognition of his heroic actions on behalf of the Atwater Police Department.

60 City Council Meeting Action Minutes for December 12, 2016 Page 5 PRESENTATION: Monthly verbal report by Merced County District 3 Supervisor McDaniel Merced County District 3 Supervisor McDaniel welcomed newly elected City Council Members Creighton and Vierra as well as newly elected City Clerk Hyler III to the dais. He announced that three new Board of Supervisors will be sworn into office on January 3, He reported that his staff will present a Castle Commerce Center economic development plan at a future regular City Council meeting. He stated his mobile office hours will resume in January and will be held the fourth Thursday of each month from 1:30 3:30 PM in the City Council Chambers, and he encouraged citizens to contact him at (209) for any concerns. COMMENTS FROM THE PUBLIC: Notice to the public was read. JOSE RAMIREZ, representing the Altamont Corridor Express (ACE) Train and Amtrak, thanked Mayor Price and the citizens of Atwater for their efforts to pass Measure V, the Merced County Transportation Expenditure Plan, and spoke in favor of working with the new City Council and City staff on a 5-year capital improvement program to expend the funds. He thanked those who participated in the recent Amtrak survey and announced a 7 th daily round trip to Sacramento fare. FRANK JOHNSON, President of Stanislaus County NAACP, welcomed the new City Council members and reminded them that by taking an oath of office they will be held accountable for their actions or lack of actions. JEANNIE KNIGHT, Atwater, questioned when the sewer plant would be completed and reminded the City Council of the importance of reading and understanding all of the materials brought before the City Council for action. No one else came forward to speak. CONSENT CALENDAR: Agenda item #9 under Informational Items Only (No Action Required), Police Department activities and projects for the month of November, 2016, was removed from the consent calendar for separate discussion. MOTION: City Council Member Vineyard moved to approve the consent calendar as amended. The motion was seconded by City Council Member Raymond and the vote was: Ayes: Vierra, Creighton, Vineyard, Raymond, Price; Noes: None; Absent: None. The motion passed.

61 City Council Meeting Action Minutes for December 12, 2016 Page 6 WARRANTS: 3. a) November 30, 2016 b) December 12, 2016 ACTION: Approval of warrants as listed. MINUTES: (Community Development and Resources Commission) 4. Regular meeting, October 19, 2016 ACTION: Acceptance of minutes as listed. REPORTS: 5. Monthly review of local drought emergency (City Attorney Terpstra) ACTION: Reaffirms the facts and findings in Resolution No declaring the existence of a local drought emergency. RESOLUTIONS: 6. Amending Section 2 of Resolution No regarding regular Audit and Finance Committee meetings (Finance Director Deol) ACTION: Adoption of Resolution No amending Resolution No regarding regular Audit and Finance Committee meetings. 7. Amending Classification Plan and adopting Salary Schedule A-17 (City Manager Pietro) ACTION: Adoption of Resolution No amending the City of Atwater Classification Plan and adopting Salary Schedule A-17, effective January 1, CLAIMS AGAINST THE CITY: 8. Claim No ACTION: After consideration and investigation, it is staff s recommendation that the late claim application for Claim No be rejected. INFORMATIONAL ITEMS ONLY (NO ACTION REQUIRED): 9. Police Department activities and projects for the month of November, 2016 (Police Chief Joseph) This item was removed from the consent calendar for separate discussion.

62 City Council Meeting Action Minutes for December 12, 2016 Page Police Volunteer activities for the month of November, 2016 (Police Volunteer Vineyard) 11. Fire Department activities and projects for the month of November, 2016 (CAL FIRE Battalion Chief Pimentel) 12. Public Works Department activities and projects for the month of November, 2016 (Interim Public Works Director Faretta) INFORMATIONAL ITEMS ONLY (NO ACTION REQUIRED): Police Department activities and projects for the month of November, 2016 (Police Chief Joseph) Police Chief Joseph reported on Police Department activities and projects for the month of November, He announced that he will be attending the FBI National Academy in Virginia beginning January 8, 2017 and returning mid-march, In Police Chief Joseph s absence, Frank Pietro will remain in a part time capacity, Sergeant Wisdom will assume administration and operations as supervisor, and four acting Police Sergeants have been assigned specific tasks. All nearby agencies have been notified. REPORTS AND PRESENTATIONS FROM STAFF: Approving Vacant Buildings and Underutilized Sites Sales Tax Rebate Program (Community Development Director McBride) MOTION: City Council Member Raymond moved to approve Resolution No establishing the Vacant Buildings and Underutilized Sites Sales Tax Rebate Program. The motion was seconded by Mayor Price and the vote was: Ayes: Vierra, Vineyard, Raymond, Creighton, Price; Noes: None; Absent: None. The motion passed. CITY COUNCIL MATTERS: City Council comments City Council Member Raymond thanked Larry Bergman and Joe Rivero for their years of service on the City Council. He congratulated newly elected City Council Members Creighton and Vierra. He asked that staff look into installation of a lit crosswalk at Fay Drive and Winton Way. He wished everyone a Merry Christmas. City Council Member Vineyard congratulated Larry Bergman and Joe Rivero on their retirement. He congratulated newly elected City Council Members Creighton and Vierra. He requested several agenda items for future regular City Council meetings: an update on the costs associated with CalPERS as well as

63 City Council Meeting Action Minutes for December 12, 2016 Page 8 three possible solutions (in January), an update on special districts, overhead lighting at crosswalks throughout the City, the possibility of hiring veterans with mechanical skills to assist with City vehicles, a road maintenance priority list (in April), and an update on solar panels. He asked that staff ensure sufficient lighting in front of City Hall. And, he wished everyone a Merry Christmas. City Council Member Vierra thanked the community for their support. City Council Member Creighton thanked Larry Bergman and Joe Rivero for their service and the citizens of Atwater for their support. He wished everyone a Merry Christmas and a Happy New Year. Mayor Price announced that the City s new website is up and is easy to navigate. He thanked the Atwater Chamber of Commerce for their efforts with this year s Christmas parade and thanked all of those who participated in the event. He reported on the recent Kops and Fire for Kids event. And, he announced a tentative date for a financial/goal setting workshop with City Council and City staff on January 5, 2017; he invited the public to attend. Mayor Price presented Frank Pietro with a plaque for his almost 40 years of dedicated service to the City as staff. Certificates of Appreciation were presented to Frank Pietro on behalf of U.S. House Representative Jim Costa, the County Board of Supervisors, State Senator Anthony Canella, and Assemblyman Adam Gray. CLOSED SESSION: Mayor Price invited public comments on Closed Session items. No one came forward to speak at this time. Mayor Price adjourned the meeting to Conference Room A for Closed Session at 8:01 PM. Closed Session was called to order at 8:10 PM. Conference with Legal Counsel Anticipated Litigation Government Code Section (b): Number of cases (2) Conference with Legal Counsel Existing Litigation Government Code Section (a): Name of Case: Niederreuther Thomas v. City of Atwater, ET AL, Case Number 1:16-CV DAD-EPG Pursuant to Government Code Section 54957, Public Employee Appointment: City Manager

64 City Council Meeting Action Minutes for December 12, 2016 Page 9 Conference with Labor Negotiator Government Code Section Agency Negotiator: Human Resources Director Del Real, Bargaining Units: AFSCME Local 2703, Council 57 - Mid-Management, Miscellaneous, and Clerical units Closed Session adjourned at 9:11 PM. MAYOR OR CITY ATTORNEY REPORT OUT FROM CLOSED SESSION: Mayor Price announced that no action was taken, and staff was given direction. The Closed Session agenda was completed. ADJOURNMENT: The meeting adjourned at 9:20 PM. DON HYLER III CITY CLERK By: Kim Bengtson-Jennings, Recording Secretary

65 CITY OF ATWATER SPECIAL MEETING CITY COUNCIL ACTION MINUTES December 15, 2016 CALL TO ORDER: The City Council of the City of Atwater met in Special Session this date at 12:01 PM in the City Council Chambers located at the Atwater City Hall, 750 Bellevue Road, Atwater, California; Mayor Price presiding. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Mayor Price. ROLL CALL: Present: Absent: Staff Present: City Council Members Creighton, Raymond, Vierra, Vineyard, Mayor Price None City Manager Pietro, City Attorney Terpstra, Police Chief Joseph, Community Development Director McBride, Human Resources Director Del Real, Finance Director Deol, Interim Public Works Director Faretta, Interim Recreation Supervisor Rahn, City Clerk Hyler III PUBLIC COMMENT: Notice to the public was read. ERIC LEE, Atwater, questioned the rush to have an emergency meeting. He stated his disappointment that the meeting was not to discuss CalPERS issues. He added that the items on this agenda could have been discussed at the next regularly scheduled meeting. Lastly, he added the need for transparency still exists; hopefully the community will see more of this going forward.

66 City Council Special Meeting Action Minutes for December 15, 2016 Page 2 DANIEL HERNANDEZ, Atwater, spoke regarding the recent article in the Merced Sun Star regarding the Mayor s lack of communication with the newly elected City Council Members. He added the Mayor s adjectives in describing certain new Council Members were inappropriate. He concluded by stating if this type of behavior continues he would start a movement to recall Mr. Price. MIKE TEATER, Atwater, congratulated the newly elected City Council. He also spoke in favor of the calling for a special meeting. He wished the entire City Council well and stated he would like to see our City get back to something we can all be proud of. CLOSED SESSION: (Conference Room A) Mayor Price invited public comments on Closed Session items. LINDA DASH, Atwater, questioned the third Closed Session item stating the City has a permanent Police Chief not an Acting Police Chief. Mayor Price recessed the special meeting to Conference Room A for Closed Session at 12:11 PM. Closed Session was called to order at 12:14 PM. CLOSED SESSION: (Conference Room A) Conference with Labor Negotiator Government Code Section Agency Negotiator: City Attorney Terpstra and/or Deputy City Attorney Henderson. Unrepresented Employee: City Manager Conference with Labor Negotiator Government Code Section Agency Negotiator: City Attorney Terpstra and/or Deputy City Attorney Henderson. Bargaining Units: Unrepresented and AFSCME Local 2703, Council 57 - Mid- Management, Miscellaneous, and Clerical units Conference with Labor Negotiator Government Code Section and Government Code Section 54957(b)(1). Agency Negotiator: Interim City Manager McBride; Public Employment Appointment, Title: Acting Police Chief Closed Session concluded at 2:00 PM. OPEN SESSION: The City Council of the City of Atwater resumed Open Session at 2:04 PM. MAYOR OR CITY ATTORNEY REPORT OUT FROM CLOSED SESSION: City Attorney Terpstra reported on, Conference with Labor Negotiator regarding Interim City Manager position that City Council moved, seconded and approved the hiring of Scott McBride as the Interim City Manager pursuant to a contact that

67 City Council Special Meeting Action Minutes for December 15, 2016 Page 3 was ratified by the council. A copy of the contract will be available for public review on the City website and will be available by request at City Hall. City Attorney Terpstra reported on, Conference with Labor Negotiator regarding Unrepresented and AFSCME Local 2703, Council 57 - Mid-Management, Miscellaneous, and Clerical units was continued with no action by council. City Attorney Terpstra reported on, Conference with Labor Negotiator relating to Acting Police Chief regarding the position of Acting Police Chief during the 9 week time period Police Chief Joseph will be attending the FBI academy in Virginia. Council was briefed and staff will separately convey information to Interim City Manager McBride on January 1, 2017 when McBride takes his position the discussion will be made by him. The Closed Session agenda was completed and staff was given direction. MOTION: City Council Member Raymond moved to table the following agenda items: Discussion and possible action regarding the role and responsibilities of the City Clerk at City Council meetings; Discussion and possible action regarding seating of the City Council, staff, press and department directors during City Council Meetings; Discussion and possible action regarding increasing City Council training budget for FY 2016/17; Discussion and possible action regarding Atwater Municipal Code Section City Manager Powers and Duties and Resolution No ; Discussion and possible action regarding City Council Reorganization process; and Discussion and possible action regarding City Council review of open/current City contracts. for discussion at a later meeting. The motion was seconded by City Council Member Vineyard and the vote was: Ayes: Creighton, Vierra, Raymond, Vineyard, Price; Noes: None; Absent: None. The motion passed. Mayor Price stated that in the past 24 hours there was a lot of contention that did not reflect well how business is conducted and was not beneficial to the City. He gave his reassurance that from this point forward the City Council will work united without distractions and move forward to address challenges that will make the City its best, the Jewel of the Valley. ADJOURNMENT: The meeting adjourned at 2:14 PM. DON HYLER III CITY CLERK By: Margarita Elodia Saavedra Recording Secretary

68 CITY OF ATWATER SPECIAL MEETING CITY COUNCIL ACTION MINUTES January 5, 2017 CALL TO ORDER: The City Council of the City of Atwater met in Special Session this date at 9:06 AM in the Jessie Frago Room located at the Atwater Community Center, 760 E. Bellevue Road, Atwater, California; Mayor Price presiding. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Mayor Price. ROLL CALL: Present: Absent: Staff Present: Facilitator City Council Members Creighton, Raymond (9:27 AM), Vierra, Vineyard, Mayor Price None Interim City Manager McBride, Police Chief Joseph, CAL FIRE Battalion Chief Pimentel, CAL FIRE Battalion Chief Schmitz, Finance Director Deol, Human Resources Director Del Real, Interim Public Works Director Faretta, Interim Recreation Supervisor Rahn, Financial Consultant Zenoni, Water Systems Shift Operator Vinson, Acting Police Sergeant Novetzke, Chief Building Official Pereida, Senior Planner Hendrix, Grants Manager Waterman Carol Whiteside, California Strategies, LLC., Sacramento, California

69 City Council Special Meeting Action Minutes for January 5, 2017 Page 2 PUBLIC COMMENT: Notice to the public was read. BUSINESS: Interim City Manager McBride announced that business item Introduction to Ethics in Public Service is removed from this agenda in its entirety due to the absence/illness of City Attorney Terpstra. A workshop was conducted to discuss City Financial Issues and Goal Setting Prioritizing. Since the purpose of the workshop was for informational purposes only, no official action was taken. Interim City Manager McBride will follow up with prioritizing of goals at a future regularly scheduled City Council meeting for discussion and possible action. During the workshop, the City Council of the City of Atwater recessed from 12:05 PM to 12:29 PM. City Council Member Vierra did not return to the workshop after the recess. City Council Member Raymond returned from the recess at 12:32 PM. BOB CALAWAY, Atwater, spoke regarding the City s financial issues regarding the past POST audit findings, Measure H special safety tax, and updating the purchasing manual. ADJOURNMENT: The meeting adjourned at 1:57 PM. JAMES E. PRICE MAYOR By: Jeanna Del Real

70 January 11, 2007 Mayor and Members of the City Council Meeting Atwater City Council of January 23, 2017 AUTHORIZING TRANSFER OF PROPERTY LOCATED AT MANUEL BAIROS PARK TO THE ATWATER ELEMENTARY SCHOOL DISTRICT RECOMMENDATION: It is recommended that the City Council take the following actions: Adopt Atwater City Council Resolution No authoring the transfer of a portion of Manuel Bairos Park to the Atwater Elementary School District for the expansion of Peggy Heller School. BACKGROUND: On October 24, 2016 the Atwater City Council approved a Purchase and Sale Agreement with the Atwater Elementary School regarding portion of the Manuel Bairos Park adjacent to Peggy Heller School. Since that time the agreement has been executed and the escrow instructions have been prepared and executed. ANALYSIS: Under terms of the agreement the City will retain a frontage portion with the park facilities and lighting of approximately 24,125 square feet -.55 acres. The remainder of 4.19 acres will be transferred to AESD. They will pay the prorated per square foot value of $61,798. To facilitate the close of escrow and recording of the Grant Deed a specific resolution authorizing the transaction on behalf of the City has to be prepared. The accompanying resolution is suitable for those purposes. FISCALIMPACT: Approximately $61,798 in revenue shall be deposited to the City s. CONCLUSION: This report is submitted for review and possible action. Respectfully submitted, Scott McBride Interim City Manager - Community Development Director City of Atwater

71 CITY COUNCIL OF THE CITY OF ATWATER RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATWATER AUTHORIZING THE SALE OF A PORTION OF MANUEL BAIROS PARK TO THE ATWATER ELEMENTARY SCHOOL DISTRICT IN SUPPORT OF THE EXPANSION OF PEGGY HELLER SCHOOL WHEREAS, The City of Atwater and Atwater Elementary School District executed a Purchase and Sale Agreement to allow for the sale of a portion of Manuel Bairos Park in support of the expansion of Peggy Heller School; and WHEREAS, the escrow for the land sale has been opened and a good faith deposit has been delivered by the Atwater Elementary School District; and WHEREAS, an approving Resolution approved by the City Council of the City of Atwater is necessary to formally approve the transaction and provide authority to a designated an official to execute the transaction on behalf of the City of Atwater. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Atwater does hereby approve the following; Section 1. The Atwater City Council authorizes the transfer of real property as described in EXHIBIT A approximately 4.19 acres located at Manuel Bairos Park to the Atwater Elementary School District; and, Section 2. City Manager shall be authorized to execute the escrow documents, title documents, and Grant Deed to implement this transaction on behalf of the City of Atwater. Section 3. All sale proceeds associated with this transaction shall be deposited to the City s. The foregoing resolution is hereby adopted this 23 rd day of January, 2017.

72 Resolution No Page 2 AYES: NOES: ABSENT: APPROVED: ATTEST: JAMES E. PRICE, MAYOR DONALD HYLER III CITY CLERK

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76 January 17,2017 Honorable Mayor and Members of the Atwater City Council City Council Meeting of January 23,2017 ATWATER POLICE OFFCIE SIDE LETTER AGREEMENT ASSOCIATION ITHE APOA} RECOMMENDATION: It is recommended that the City Council consider: a Adopting Resolution No ratifying Side Letter of Agreement with Atwater Police Officers Association (the APOA) and authorizing and directing the City Manager to execute the agreement, in a form approved by the City Attorney, on behalf of the City. BACKGROUND: The City of Atwater and the Atwater Police Officers Association entered into its most recent Memorandum of Understanding (MOU) on March 10, The term of the current MOU expires on June 30,2017. One substantive change in the 2016 MOU relates to Adicle 7: "Work Week and Schedule," Section 7.2.1: "Sworn Members." This section states "Sworn Members have agreed to an alternate work schedule using a 12 hour plan. The plan will include the following schedule: for each fourteen (14) day period - the first week, the member will work three (3) days of twelve (12) hours each and one (1) day of eight (8) hours, and the second week, the memberwill work three (3) days of twelve (12) hours each." The alternate work schedule went into effect on July 28,2016. ANALYSIS: On December 8, 2016, members of the APOA advised the City that the alternate work schedule using a twelve (12) hour plan is causing significant officer safety concerns. Said concerns were specifically due to low staffing levels as a result of separations and extended leaves. On December 9, 2016, staff sent a request to the APOA to reopen the MOU pursuant to Atticle 22, Section D. The City's negotiating team met with APOA representatives on December 21,2016 and December 29,2016 to address scheduling issues. On December 29,2016, the City and the APOA tentatively reached an agreement to temporarily transition away from twelve (12) hour shifts in times of low staffing levels, The Side Letter Agreement, attached as Exhibit "A" to the resolution, defines the work scheduled based on the number of available personnel. The APOA and the City are satísfied that defining the work schedule based on available personnel will resolve the safety issues that are occurring due to low staffing levels. The APOA voted to ratify the Side Letter Agreement on January 17,2017.

77 Agenda Report - Resolution No Page 2 FISCAL IMPACT: No fiscal impact is associated with the Side Letter Agreement. CONCLUSION: This staff report is submitted for City Council consideration and possible action Respectfully submitted, lranç^'(^ Scott McBride lnterim City Manager

78 CITY COUNCIL OF THE CITY OF ATWATER RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATWATER RATIFYING SIDE LETTER AGREEMENT WITH ATWATER POLICE OFFICERS ASSOCIATION (APOA), REPRESENTING POLICE BARGAINING UNIT WHEREAS, City Representatives and have met and conferred with representatives of Atwater Police Officers Association (the APOA) regarding certain terms and conditions of employment; and WHEREAS, this side letter agreement modifies the terms of the Memorandum of Understanding ("MOU") governing the Atwater Police Officers Association. The parties specifically agree that effective January 23, 2017 the existing language of Section of the MOU shall be replaced as set forth in the side letter. NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Atwater does hereby approve an amendment to the Atwater Police Officers Association (the APOA) Memorandum of Understanding in accordance with EXHIBIT "A" attached hereto and made a part thereof. BE IT FURTHER RESOLVED, that the City Council of the City of Atwater does hereby authorize and direct the City Manager to sign any documents and to take any necessary measures required to implement the provisions of the Memorandum of Understanding upon review by the City Attorney. The foregoing resolution is hereby adopted this 23 rd day of January, AYES: NOES: ABSENT: APPROVED: ATTEST: JAMES E. PRICE, MAYOR DON HYLER III CITY CLERK

79 SIDE LETTER AGREEMENT BY AND BETWEEN THE CITY OF ATWATER AND TI{E ATWATER PEACE OFFICERS ASSOCIATION It is hereby agreed, by and between the parties hereto and through their respective representatives and attorneys, that the following language shall become effective terms and conditions of employment upon ratification by both parties, APOA membership, and the Atwater City Council. Article 7 of the March 9, amended to read as follows: June 30,2017 Memorandum of Understanding shall be Article Sworn Members B(1). Sworn Members assigned to "Patrol" have agreed to accept a work schedule using a twelve (12) hour plan. The plan will include the following schedule: for each fourteen (1a) day period - the first week, the member will work three (3) days of twelve (12) hours each and one (1) day of (8) hours, and the second week, the member will work three (3) days of twelve (12) hours each. Overtime shall not be paid to Tier I members during the first week when they work three (3) days oftwelve (12) hours each and one (1) day ofeight (8) hours. B(2). The schedule agreed to in B(1) above shall remain the agreed upon schedule during all times of adequate staffing (hereby defined as staffing of 15 available personnel or more) a. The calculation of staffing levels based on "available personnel," as used in this section and in B(3) below, shall include all officers regularly assigned to the Patrol Division, the Patrol Sergeant, if any, and shall not include any personnel in special assignments, school resource officers, any officer that is on leave of absence for an actual or anticipated time period of longer than fourteen (1a) days, or any other member of the Department temporarily transferred to backfill the Patrol assignment of personnel on leave of absence. B(3). In times of low stafhng, the schedule of patrol officers will temporarily transition away from twelve (12) hour shifts, as follows: a. For any initial transition from the regular shift described in B(1) to one of the alternate schedules below, the City shall notify APOA of the change a minimum of fourteen (14) days prior to the effective date of schedule change, unless waived through mutual agreement of the APOA and the City. b. For staffing levels of twelve (12) to fourteen (14) available personnel, members will work four (4) days often (10) hour shifts and have three (3) consecutive days off. c. For staffing levels of eleven (1 1) or fewer available personnel, members will work five (5) days of eight (8) hour shifts and have two consecutive days off. d. During any period of reduced staffîng and alternate work schedules, as described in B(3), the City shall evaluate staffing levels on the first (1") day of the pay period that falls

80 closest to the 1't day of each calendar month (approximately every four (4) weeks). The City will provide to the APOA, written confirmation of the staffing level as it exists on that day, as well as any changes to staffing levels reasonably anticipated to take place within that calendar month. e. If, upon the review in (d) above, a schedule change is appropriate based on a change in staffing levels as identified in this Article, the City shall provide notice to APOA and the appropriate schedule change shall become effective two pay periods later, upon on the 1't day of the pay period (approximately four (4) weeks later). The above amendments to Article 7 are hereby agreed upon by each party representative's signature below, subject to ratfficationby both membership and City Council. For the City of Atwater **Ratified bv Membership Vote on January For the Atwater Peace Officers Association r,7-t1'tl Date

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109 January 11, 2017 Board of the Successor Agency Meeting of to the Atwater Redevelopment Agency January 23, 2017 RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND ADMINISTRATIVE BUDGET FY RECOMMENDATION: It is recommended that the Successor Agency to the Redevelopment Agency of the City of Atwater take the following action: Adopt Successor Agency Resolution No adopting the Recognized Obligation Payment Schedule for the July 1, 2017 through June 30, 2018 period and adopting the Administrative Budget for Fiscal Year BACKGROUND: On December 29, 2011, the California Supreme Court issued its decision in CRA v. Matosantos, upholding ABx1 26, which dissolves all redevelopment agencies in California, and overturning ABx1 27, the voluntary alternative redevelopment program. With the voluntary redevelopment program provided for in ABx1 27 having been ruled unconstitutional by the Court, all California redevelopment agencies were dissolved on February 1, As of February 1, 2012, redevelopment agencies throughout the State ceased to exist. Successor Agencies are responsible for winding down the affairs of their respective now-dissolved redevelopment agencies. The City of Atwater is acting as the Successor Agency to manage and curtail the operation of the dissolved Atwater Redevelopment Agency. As Successor Agency, the City is responsible for all of the assets, properties, contracts, leases, obligations, and records of the former Redevelopment Agency. For the Successor Agency to continue paying obligations of the former Redevelopment Agency, ABx1 26 requires the Successor Agency to prepare an annual Recognized Payment Obligation Schedule ( ROPS ) setting forth the Successor Agency s payment obligations for two six-month periods. The ROPS shall include any bonds, loans, payments required by the federal government, contracts, costs associated with Disposition and Development Agreements, and other similar obligations to third parties. ANALYSIS: Recognized Obligation Payment Schedule HSC Section 34177(l) requires the Successor Agency to prepare a ROPS showing all the obligations of the former Redevelopment Agency and the sources of funds for repaying obligations. The 11 th ROPS, covering the period July 1, 2017 through June 30,

110 Agenda Report ROPS & Administrative Budget Page ( period ), must be approved by the Oversight Board and sent to the California State Department of Finance ( DOF ) and the County Auditor-Controller no later than February 1, The Successor Agency may face a fine of $10,000 per day for ROPS submitted after this deadline. The items on the ROPS are substantially the same as those included on ROPS In summary, the Successor Agency requests a total of $1,296,698 from the Redevelopment Property Tax Trust Fund ( RPTTF, the fund composed of property taxes distributed by the County Auditor-Controller to fund ROPS obligations) and proposes to spend $4,896 of interest and rent revenue accrued during previous periods for obligations in the period. The obligations listed on the ROPS include funding for the following: Bond Debt Service Costs, Contracts for bond administration and disclosure services, Successor Agency Employee Costs - Administrative Costs, and Implementation of the Property Management Plan Disposition Activities. Administrative Budget HSC Section 34177(j) requires the Successor Agency to prepare an Administrative Budget and submit it to the Oversight Board for approval. The Successor Agency anticipates needing the entire $250,000 minimum annual administration allocation described in HSC Section (b). SERAF Loan Repayment The Successor Agency maintains a SERAF loan owed to the housing successor agency. SERAF loan payments in each fiscal year are limited to one half of the difference between the previous fiscal year s residual revenue and the fiscal year residual revenue. Residual revenue is the amount of RPTTF revenue property taxes distributed by the County Auditor-Controller available after deducting from gross revenue the following: County Auditor-Controller s and State Controller s Office administrative fees, pass through payments, and the amount approved by DOF to pay enforceable obligations. The Successor Agency s residual revenue equaled $471,826 in fiscal year Based on residual revenue for recent years not exceeding $400,000 and the formula described above, the Successor Agency does not expect to be able to make a SERAF loan payment until there is significant growth in RPTTF revenue, which may take several years.

111 Agenda Report ROPS & Administrative Budget Page 3 FISCAL IMPACT: Adoption and transmittal of the ROPS are necessary to receive money from the RPTTF to fund the Successor Agency s financial obligations from July 1, 2017 through June 30, CONCLUSION: This item is submitted for Successor Agency consideration and possible action. The Oversight Board will consider the ROPS and related administrative budget at a Special Meeting scheduled for the January 25, 2017 meeting. Respectfully submitted, Scott McBride Interim City Manager - Community Development Director City of Atwater

112 SUCCESSOR AGENCY TO THE ATWATER REDEVELOPMENT AGENCY RESOLUTION NO. SA A RESOLUTION OF THE SUCCESSOR AGENCY TO THE ATWATER REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 2017 THROUGH JUNE 2018 AND APPROVING THE SUCCESSOR AGENCY S PROPOSED ADMINISTRATIVE BUDGET FOR FISCAL YEAR WHEREAS, the City of Atwater elected to serve as the Successor Agency to the former Atwater Redevelopment Agency ( Successor Agency ) pursuant to Assembly Bill x1 26, Assembly Bill 1484, and Senate Bill 107 (collectively the Dissolution Act ) as codified in the California Health & Safety Code ( HSC ); and WHEREAS, among the duties of successor agencies under the Dissolution Act is the preparation of a Recognized Obligation Payment Schedule ( ROPS ) for the ensuing two six-month periods for consideration by a local oversight board and the California Department of Finance ( DOF ) for purposes of administering the wind-down of financial obligations of the former Redevelopment Agency; and WHEREAS, the Dissolution Act requires that the proposed ROPS be transmitted to the local oversight board for its approval and subsequently transmitted to the county auditor-controller, State Controller s Office, and DOF for their consideration; and WHEREAS, the proposed ROPS for the six-month periods from July 1, 2017 through December 31, 2017 and January 1, 2018 through June 30, 2018, attached hereto as EXHIBIT A, has been prepared and is consistent with the provisions of the Dissolution Act and in the format made available by DOF; and WHEREAS, HSC Section 34177(j) requires the Successor Agency to prepare a proposed administrative budget and submit it to the Oversight Board for approval; and WHEREAS, the Successor Agency s proposed Fiscal Year Administrative Budget for the period July 1, 2017 June 30, 2018 has been reviewed, and by this

113 Resolution No. SA Page 2 Resolution the Successor Agency desires to approve such Administrative Budget and authorize submittal thereof to the Oversight Board for its review and approval; and WHEREAS, the Oversight Board will review the ROPS and Administrative Budget on January 16, 2017; and WHEREAS, the Successor Agency desires to approve the ROPS and transmit it to various parties as required by the Dissolution Act. NOW, THEREFORE, the Successor Agency to the Atwater Redevelopment Agency does hereby resolve as follows: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Approval of ROPS The Successor Agency hereby approves and adopts the ROPS covering the period of July 1, 2017 through June 30, 2018, in substantially the form attached hereto as EXHIBIT A, as required by the Dissolution Act. Section 3. Approval of Successor Agency FY Administrative Budget. Pursuant to the Dissolution Act, the Successor Agency approves the Fiscal Year Administrative Budget for the period July 1, 2017 to June 30, 2018 submitted herewith as EXHIBIT B, which is incorporated herein by this reference. Section 4. Posting; Transmittal of ROPS to Appropriate Agencies. The City Manager is hereby authorized and directed to post a copy of the ROPS on the City s website and transmit a copy of the ROPS to the offices of the Merced County Auditor-Controller, the Merced County Executive Officer, and the State of California Department of Finance upon the Oversight Board s approval. The foregoing resolution is hereby adopted this 23 rd day of January, AYES: NOES: ABSENT: ABSTAINED: APPROVED: JAMES E. PRICE, MAYOR

114 Resolution No. SA Page 3 ATTEST: DON HYLER III, CITY CLERK

115 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2017 TO JUNE 30, 2018

116 EXHIBIT B SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 2017 TO JUNE 30, 2018

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121 Atwater Successor Agency Administrative Budget FY Administrative Activities Personnel County correspondence/coordination Successor Agency Staff, RSG, Legal Counsel State correspondence/coordination Successor Agency Staff, RSG, Legal Counsel Prepare ROPS Successor Agency Staff, RSG, Legal Counsel Prepare admin budget Successor Agency Staff, RSG, Legal Counsel Oversight Board staff support Successor Agency Staff, RSG, Legal Counsel Management of dissolution activities Successor Agency Staff, RSG, Legal Counsel Annual Audit Price, Page & Company Manage/monitor finances Successor Agency Staff, RSG Agendas/minutes/Brown Act records assistance Successor Agency Staff, RSG Successor Agency Administrative Budget Description Total Successor Agency Staff Costs Salaries, Wages, Benefits 187,000 RSG, Inc. Advisory Services (ROPS Preparation, Legislative Guidance, Property Disposition, Cash Flow Projections, State/County Correspondance, etc.) 25,000 Price, Page & Company Audit Services 5,000 Union Pacific Railroad Landscaping Lease 2,000 Successor Agency Legal Counsel Legal Services 30,000 Oversight Board Costs Supplies and Meeting Cost 1,000 Grand Total 250,000

122 January 11, 2017 Board of the Successor Agency Meeting of to the Atwater Redevelopment Agency January 23, 2017 AUTHORIZE A CONTRACT WITH RSG INC. FOR SUCCESSOR AGENCY CONSTULTING SERVICES FOR FISCAL YEAR RECOMMENDATION: It is recommended that the Board of the Successor Agency to the Redevelopment Agency of the City of Atwater take the following actions; Approve proposal for professional services with Rosenow Spevacek Group Inc. (RSG) to perform services to the Successor Agency to the Atwater Redevelopment Agency (Successor Agency) for the Fiscal Year , in a form to be approved by the City Attorney; and Transmit the consulting services proposal to the Oversight Board for their consideration and possible action. BACKGROUND: Since the dissolution of redevelopment agencies, the Successor Agency has used the services of RSG to satisfy its requirements and to plan for the future under Redevelopment dissolution. RSG has submitted a proposal for Successor Agency consulting services, (Exhibit A), to continue providing these services during Fiscal Year RSG has been instrumental in assisting the City in obtaining administrative funds each year. These funds typically include approximately $175,000 ttransferred to the General Fund to provide for the on-going services in support of the former redevelopment agency. They assisted the city in being able to access and utilize former agency bond funds to complete two capital improvement projects, Atwater Blvd. Winton Way and Broadway Ave. They have also assisted in the preparation of a Property Management Plan which has recently allowed the City to retain two Downtown Parking Lots for public use. ANALYSIS: Requirements and Planning As described in RSG s proposal, the Successor Agency will need to complete and submit a Recognized Obligation Payment Schedule ( ROPS ) for approval by the Oversight Board (OB) and State Department of Finance (DOF) for the fiscal year as it has since the dissolution of the former redevelopment agency Given RSG s

123 Agenda Report Professional Services for RSG Inc. Page 2 assistance in submitting previous ROPS for the Successor Agency, RSG is well positioned to assist with the next ROPS efficiently and effectively. RSG also has experience representing successor agencies in the Meet and Confer process used to resolve items of dispute between successor agencies and DOF. Should such representation be necessary for the Successor Agency, RSG will assist in dispute resolution. The Successor Agency has begun the disposition process for its real property as part of the Long Range Property Management Plan ( LRPMP ). RSG helped to prepare the LRPMP, to revise the LRPMP per DOF s comments, and to prepare LRPMP disposition procedures. Therefore, RSG is well positioned to assist the Successor Agency with continued guidance for property disposition. Over the next fiscal year two commercial properties are likely to be disposed of, consistent with the adopted plan and with oversight by the OB. RSG will also assist the Successor Agency to plan for the future. By preparing and providing a long-term cash flow, RSG will anticipate financial problems before they occur and work with the Successor Agency to plan accordingly to prevent those problems and to use anticipated revenues most efficiently. RSG s analysis and understanding of Redevelopment dissolution legislation will continue to help guide the Successor Agency through the dissolution process. Administrative Budget HSC Section 34177(j) requires the Successor Agency to prepare an Administrative Budget and submit it to the OB for approval. The Successor Agency anticipates needing the entire $250,000 minimum annual administration allocation described in HSC Section 34171(b). The administrative budget includes$25,000 of the administrative budget allocated for RSG consulting services. FISCAL IMPACT: Approval of RSG s proposal for Successor Agency consulting services for Fiscal Year will lead to the commitment of $25,000 of the Successor Agency s administrative budget that has been allocated for such purpose. The administrative budget is pending approval by the Oversight Board and DOF. If approved all items will be incorporated into the City s Budget for FY CONCLUSION: This item is submitted for Successor Agency consideration and possible action. The Oversight Board is scheduled to review these items at Special Meeting scheduled for the January 25, Respectfully submitted,

124 Agenda Report Professional Services for RSG Inc. Page 3 Scott McBride Interim City Manager - Community Development Director City of Atwater

125 SUCCESSOR AGENCY TO THE ATWATER REDVELOPMENT AGENCY RESOLUTION NO. SA A RESOLUTION OF THE SUCCESSOR AGENCY TO THE ATWATER REDEVELOPMENT AGENCY APPROVING THE PROPOSAL FOR SUCCESSOR AGENCY CONSULTING SERVICES FOR FISCAL YEAR PROVIDED BY RSG INC. WHEREAS, the City of Atwater elected to serve as the Successor Agency to the former Atwater Redevelopment Agency ( Successor Agency ) pursuant to Assembly Bill x1 26, Assembly Bill 1484, and Senate Bill 107 as codified in the California Health & Safety Code; and WHEREAS, the complexities and requirements of the Redevelopment dissolution process and the limited budget of the City make it difficult for the City to manage the duties and responsibilities of the Successor Agency single-handedly; and WHEREAS, RSG Inc. ( RSG ) has provided consulting services since the beginning of Redevelopment dissolution for the Successor Agency to fulfill its obligations; and WHEREAS, RSG has submitted a proposal for Successor Agency consulting services for Fiscal Year ( FY ) detailing the work that the Successor Agency needs to complete during the fiscal year and how RSG will help to realize that work; and WHEREAS, the Successor Agency allocated and is in the process of approving expenses for RSG consulting services in its FY Administrative Budget; and WHEREAS, Successor Agency staff has reviewed and supports RSG s proposal (EXHIBIT A ). NOW, THEREFORE, the Successor Agency to the Atwater Redevelopment Agency does hereby resolve as follows: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Approve RSG s proposal for Successor Agency consulting services.

126 Resolution No. SA Page 2 The Successor Agency hereby accepts and approves RSG s proposal for consulting services for Fiscal Year The foregoing resolution is hereby adopted this 23 rd day of January, AYES: NOES: ABSENT: ABSTAINED: APPROVED: JIM PRICE, MAYOR ATTEST: DON HYLER III, CITY CLERK

127 STATE OF CALIFORNIA ) COUNTY OF MERCED ) ss. CITY OF ATWATER ) I, DON HYLER III, hereby certify that I am the duly appointed City Clerk of the City of Atwater and that the foregoing resolution was duly adopted at a regular meeting of the Successor Agency held on the 23 rd day of January DON HYLER III CITY CLERK

128 EXHIBIT A PROPOSAL FOR SUCCESSOR AGENCY CONSULTING SERVICES, FISCAL YEAR

129 December 15, 2016 Via Electronic Mail Scott McBride, Director of Economic Development & Special Projects CITY OF ATWATER 750 Bellevue Road Atwater, CA PROPOSAL FOR SUCCESSOR AGENCY CONSULTING SERVICES, FISCAL YEAR Dear Mr. McBride: RSG is pleased to present this proposed scope of work and budget to provide the City of Atwater ( City ) and the Successor Agency to the Atwater Redevelopment Agency ( Successor Agency ) with continued administrative services related to Assembly Bill x1 26 ( ABx1 26 ), Assembly Bill 1484 ( AB 1484 ), and Senate Bill 107 ( SB 107 ). Our role would be to provide technical, management, and administrative services to enable staff to wind down the affairs of the former Redevelopment Agency, meet ongoing reporting requirements, conduct financial and strategic planning, and provide other services as directed by staff. Specific assignments may include but are not limited to the following: Financial Planning and Transition Services including advising on the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget Property Disposition Strategic Planning and Implementation Organizational Structuring Project Advisory Services Project Management Services Meetings of the Oversight Board Meetings, Agenda, and Staff Report Assistance Monitoring of Legal Requirements and Covenants Financial Advisory Services Legislative Analysis Taxing Entity Consultations Others Services as Designated SCOPE OF SERVICES RSG has specifically identified the following tasks that Staff will need to consider in the near-term: