AGENDA JOINT CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING CITY HALL COUNCIL CHAMBERS 520 J Street Los Banos, California

www.losbanos.orq AGENDA JOINT CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING CITY HALL COUNCIL CHAMBERS 520 J Street Los Banos, California JANUARY 21, 2009 r---- Si requiere asistencia especial para atender 0 participar en esta junta por favor /lame a la of/cina de la Secretaria de la ciudad al (209) 827-7000 a 10 menos de 48 horas previas de lajunta. La Cuidad de Los Banos cumple con la Acta de Americanos con Deshabilidad (ADA) de 1990. ----I, Agency con respecto a cualquier artrculo en este orden del dra sera hecho disponible para la : li::~#'"~:~~~~~~~4f~~!~~~~~~:~:~ 1 1. CALL TO ORDER. 7:00 PM 2. PLEDGE OF ALLEGIANCEc 3. ROLL CALL: (City Council and Redevelopment Agency Board Members) Faria_, Sousa _, Stone _, Villalta _, Jones _ 4. CONSIDERATION OF APPROVAL OF AGENDA. 5. PRESENTATIONS - Proclamation Recognizing Joe Cox. Los Banos City Council/Redevelopment Agency Agenda - January 21, 2009 Page 1 of 3

6. PUBLIC FORUM~ (Members of the public may address the City Council / Redevelopment Agency Members on any item of public interest that is within the jurisdiction of the City Council/Redevelopment Agency; includes agenda and nonagenda items. No action will be taken on non-agenda items. Speakers are limited to a five (5) minute presentation. Detailed guidelines are posted on the Council Chamber informational table.) 7. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. (Items on the Consent Agenda are considered to be routine and will be voted on in one motion unless removed from the Consent Agenda by a City Council/Redevelopment Agency Member.) A. Check Register for #113736 - #113972 in the Amount of $2,799,338.67. Recommendation: Approve the check register as submitted. R Minutes for the December 17, 2008 City Council/Redevelopment Agency Meeting. Recommendation: Approve the minutes as submitted. C~ Minutes for the January 7, 2009 City Council/Redevelopment Agency Meeting. Recommendation: Approve the minutes as submitted. D. City Council Resolution No. - Accepting Public Improvements for Regency Park Estates, Unit 6 and Release of Associated Construction Bonds (Ranchwood Contractors). Recommendation: Adopt the resolution as submitted. 8. PUBLIC HEARINGS. (If you challenge the proposed action as described herein in court, you may be limited to raising only those issues you or someone else raised at the public hearing described herein or in written correspondence delivered to the City or Redevelopment Agency at, or prior to, the public hearing.) A. Public Hearing - To Receive Comment on the City's Proposed Amendments to Chapter 18 of Title 3 of the Los Banos Municipal Code, Regional Transportation Impact Fee (RTIF). (Continued from August 20,2008) 1) Ordinance No. 1086 - Amending Chapter 18 of Title 3 of the Los Banos Municipal Code Relating to the RTIF Recommendation: Receive staff report, open the public hearing, receive public comment and introduce the ordinance as submitted. Los Banos City Council/Redevelopment Agency Agenda - January 21. 2009 Page 2 of 3

9. CONSIDERATION OF APPOINTMENT OF A COUNCIL MEMBER AND AN ALTERNATE TO THE NEWLY CREATED VALLEY-WIDE SPECIAL CITY SELECTION COMMITTEE ASSOCIATED WITH THE SAN JOAQUIN VALLEY AIR POLLUTION CONTROL DISTRICT. Recommendation: Select a Council Member and an alternate. 10. REDEVELOPMENT AGENCY UPDATE. 11 ADVISEMENT OF PUBLIC NOTICES. (No Reports) 12. CITY MANAGER / EXECUTIVE DIRECTOR REPORT. 13. CITY COUNCIL / REDEVELOPMENT AGENCY MEMBER REPORTS. A. Tommy Jones B. Joe Sousa C. Elizabeth Stone D. Mike Villalta E. Tom Faria 14. MISCELLANEOUS INFORMATION IN CITY COUNCIL PACKET, NO ACTION NECESSARY. 15. CLOSED SESSION - CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION, PURSUANT TO SUBDIVISION (A) OF SECTION 54956.9 OF THE GOVERNMENT CODE. NAME OF CASE: FIRST AMERICAN TITLE INSURANCE COMPANY VS. CITY OF LOS BANOS, MERCED SUPERIOR COURT CASE NO. CU151810. 16. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing ~da was posted on the City Hall bulletin board 110t less than 72 hours prior to the meeting.. ~ f.)ia Cl/~ Lucille L. Mallonee, City Clerk Dated this 16 th day of January 2009 Los Banos City Council/Redevelopment Agency Agenda - January 21, 2009 Page 3 of 3

CK #113736 - # 113972 01/21/09 $2,799,338.67 Bank Reconciliation Checks By Date LOS Banos,i :' ; ni;'.; 0111412009-3:47 PM User: rsouto Cleared and Not Cleared Checks CbeckNo CbeckDate Name Comment ModuIe Void Clear Date Amount 113736 12/3012008 County Bank - Cafeteria Plan AP 3,692.13 113737 12/30/2008 County Bank - Cafeteria Plan AP 218,679.95 113819 0110212009 Afiac-Customer Service AP 239.45 113820 01102/2009 Afiac-Customer Service AP 293.10 113821 01102/2009 Afiac-Customer Service AP 86.10 113822 0110212009 Afiac-Customer Service AP 159.42 113823 01102/2009 Bank ofamerica AP 112,010.63 113824 0110212009 Bank ofamerica AP 3,086.78 113825 01102/2009 Bank ofamerica AP 21,990.62 113826 01102/2009 Hartford Life Ins Co AP 8,378.70 113827 0110212009 Internal Revenue Service AP 445.08 113828 01102/2009 Los Banos Police Assn AP 1,280.50 113829 01102/2009 Merced County Sheriff AP 100.00 113830 01102/2009 Nationwide Retiremt Solut AP 1,895.00 113831 01102/2009 PERS Long Tenn Care AP 362.64 113832 0110212009 Professional Fire Fighter AP 375.00 113833 01102/2009 State Disbursement Unit AP 168.00 113834 01102/2009 State Disbursement Unit AP 700.00 113835 01102/2009 State Disbursement Unit AP 64.00 1]3836 01102/2009 State Disbursement Unit AP 313.50 113837 01102/2009 State Disbursement Unit AP 99.61 113838 01102/2009 State Disbursement Unit AP ]97.00 ] 13839 01102/2009 State Disbursement Unit AP 212.00 113840 0110212009 State Disbursement Unit AP 214.50 113841 01102/2009 State Disbursement Unit AP 208.50 113842 0110212009 State Disbursement Unit AP 502.50 113843 01105/2009 County Bank Cafeteria Plan AP 427.02 113844 01105/2009 Comcast AP 214.65 113845 0110512009 Mark Fachin AP 3,487.38 113846 01105/2009 Chet Guintini AP 3,493.33 113847 01107/2009 Bank ofamerica AP 1,800,000.00 ] 13848 01107/2009 Robert R. Fandrey AP 39,925.00 113849 01109/2009 ABS Presort Inc AP 12,401.82 ]13850 01109/2009 Anderson Pump Company Inc AP 27,978.6] 113851 01109/2009 Jenell Birdsall AP 302.21 113852 0110912009 Board ofequalization AP 603.00 113853 0110912009 Boyle Engineering Corp. AP 21,168.64 113854 01109/2009 Cathcart Fineline Stripng AP 20,232.50 113855 01109/2009 Dept ofpublic Health AP 55.00 113856 01109/2009 Dept ofconservation AP 1,057.36 113857 0110912009 Darrall Gargano AP 212.58 113858 01/09/2009 GVC - Blueprint Surmnit AP 245.00 113859 01109/2009 Irly-Bird Landscape Inc AP 8,534.50 113860 01/0912009 LM Services, Inc. AP 1,539.00 113861 01/09/2009 Lucille L Mallonee AP 150.72 113862 01/09/2009 Merced County Association AP 11,868.42 113863 01109/2009 Merced County Clerk AP 9,053.91 113864 01109/2009 Moss,Levy & Hartzheim LIe AP 7,300.00 113865 0110912009 P G & E Company AP 18.30 113866 01109/2009 PERS - Public Employees AP 116,171.25 BR - Checks by Date (01114/2009-3:47 PM) Page

Check No Check Date Name Comment ModuleVoid Clear Date Amount 113867 01/09/2009 Pinnacle Medical Group AP 355.00 113868 01/09/2009 Beverly Prior Architects Inc AP 117,475.62 113869 01/09/2009 RBF Consulting AP 5,982.00 113870 01/09/2009 Jana Sousa AP 590.49 113871 01/09/2009 Stacy Souza AP 598.44 113872 01/09/2009 State Controller'S Office AP 22.38 113873 01/0912009 Elizabeth Stone AP 209.24 113874 01/0912009 Thorworks Industries AP 6,023.76 113875 01/0912009 Westamerica Bank AP 19,288.64 113876 01/09/2009 Alhambra AP 85.50 113877 01/09/2009 A & A Electrical Service AP 1,198.57 113878 01/09/2009 ABS Presort Inc AP 1,296.70 113879 01/09/2009 All American Plumbing AP 499.00 113880 01/09/2009 Ameripride Valley Uniform AP 569.33 113881 01/0912009 Aramark Uniform Ser Inc AP 761.95 113882 01/09/2009 Aramark AP 30.54 113883 01/09/2009 AT&TIMCI AP 670.99 113884 01/09/2009 AT&T Mobility AP 100.07 113885 01/0912009 AT&T Long Distance AP 3.29 113886 01/09/2009 AT&T AP 792.75 113887 01/09/2009 Auto Zone Commercial AP 23.69 113888 01/09/2009 Back:f1ow Apparatus & Valve Co. AP 79.16 113889 01/09/2009 Barton Overhead Door Inc AP 750.00 113890 01/09/2009 Begur Consulting AP Void 7,267.50 113891 01/09/2009 BJts Consumers Choice AP 403.00 113892 01/09/2009 Borges & Mahoney Inc AP 5,291.68 113893 01/09/2009 Stericycle Inc AP 170.07 113894 01/09/2009 Bruce's Tire Inc AP 2,031.32 113895 01/0912009 BSK AP 2,833.78 113896 01/0912009 BSK Analytical Laboratories AP 450.00 113897 01/09/2009 Calaveras Materials Inc AP 1,748.90 113898 01/09/2009 Cit Technology Fin Serv, Inc. AP 2,351.04 113899 01/09/2009 Comcast AP 99.95 113900 01/09/2009 CompuCom AP 96.12 113901 01/09/2009 Copy Shipping Solutions AP 3.23 113902 01/09/2009 CSI Forensic Supply AP 64.41 113903 01/09/2009 CSKProshop AP 127.88 113904 01/09/2009 Deluxe Cleaners AP 386.50 113905 01/09/2009 Dma Automation AP 668.28 113906 01/09/2009 Eco:Logic Engineering AP 81,659.10 113907 01/09/2009 Excalibur Elevator Inc AP 175.00 113908 01/09/2009 Fastenal Company AP 30.99 113909 01/09/2009 Federal Express AP 66.45 113910 01/0912009 Fire Dept Training Netwrk AP 240.00 113911 01/09/2009 Grainger Parts Operations AP 286.69 113912 01/09/2009 Hach Company AP 90.49 113913 01/09/2009 Heppner Precision Machine AP 47.52 113914 01/09/2009 Hi Tech Emergency Vehicle Ser AP 68.38 113915 01/0912009 Holt Bros AP 2,106.44 113916 01/0912009 Home Depot AP 260.21 113917 01/09/2009 HSBC Business Solutions AP 277.36 113918 01/09/2009 Ikon Office Solutions, Inc. AP 504.32 113919 01/0912009 J W Professional Janitor AP 7,269.70 113920 01/09/2009 Los Banos Car Wash Inc AP 33.00 113921 01/09/2009 Los Banos Rental Yard Inc AP 340.39 113922 01/09/2009 Los Banos Truck & Trailer AP 449.76 113923 01/09/2009 Marfab Inc AP 264.72 113924 01/09/2009 Matson Alarm Co Inc AP 175.00 113925 01/09/2009 MCEDCO AP 11,300.00 113926 01/0912009 Merced County Health Dept AP 114.00 113927 01/09/2009 Merced County Weights & AP 140.00 113928 01/09/2009 Mikes Radiator & Muffler AP 201.57 BR Checks by Date (01/14/2009-3:47 PM) Page 2

Check No Check Date Name Comment ModuleVoid Clear Date Amount 113929 01109/2009 Nextel Communications AP 1,957.97 113930 01109/2009 North Central AP 85.24 113931 01109/2009 The Office City AP 2,048.00 113932 01109/2009 Office Equipment Fin Serv AP 243.22 113933 01109/2009 OSE AP 68.92 113934 01109/2009 Old Dominion Brush AP 1,173.62 113935 01109/2009 OnTrac AP 57.12 113936 01109/2009 The Paper AP 388.00 113937 01/09/2009 Parreira's Performance AP 146.57 113938 01/0912009 Pearson's Jewelers AP 21.55 113939 01109/2009 Pepper's Auto Parts Inc AP 271.15 113940 01109/2009 The Phone Connection Inc AP 147.50 113941 01/09/2009 Reds Roofing Company AP 108.16 113942 01/09/2009 Recall Secure Destruction AP 213.64 113943 01/0912009 Royal Chemical AP 1,343.24 113944 01/09/2009 Safe T Lite AP 258.60 113945 0110912009 The Saw Shop AP 15.50 113946 01109/2009 Santos Ford Lincoln- AP 499.31 113947 01109/2009 Save Mart Supermarkets AP 478.58 113948 01109/2009 Sharpening Shop AP 241.54 113949 01/09/2009 Sherwin Williams Co AP 584.27 113950 01/09/2009 Silveria Electric AP 75.00 113951 01/09/2009 Sol's Mobile Service AP 220.00 113952 01/0912009 Sorensens True Value AP 559.05 113953 01109/2009 State Disbursement Unit AP 174.00 113954 01109/2009 Starlight Video Services AP 550.00 113955 01/0912009 Stradling Yocca Carlson & AP 429.47 113956 01109/2009 Synergy Broadcast System AP 2,500.00 113957 01/09/2009 A. Teichert & Son, Inc. AP 1,110.21 113958 01109/2009 Toscano RV Center AP 101.17 113959 01109/2009 Triangle Rock Products AP 862.61 113960 01109/2009 Adolfo Castillo AP 75.15 113961 01109/2009 Valerie Leal AP 17.57 113962 01109/2009 Johnny & Vicki Pero III AP 6.08 113963 01109/2009 Raymond Tevis AP 33.20 113964 01/09/2009 Walmart Community AP 679.32 113965 01109/2009 Westside Water Conditioni AP 19.50 113966 01109/2009 Windecker Inc AP 8,744.86 113967 01/09/2009 Westwind AP 4,359.30 113968 0110912009 Young's Air Conditioning AP 244.00 113969 01109/2009 Young's Automotive AP 390.10 113970 01/12/2009 B & D Computer Solutions AP 1,528.31 113971 01112/2009 The Bank ofnew York AP 23,868.80 113972 01112/2009 Secretary ofstate AP 10.00 Total for Valid Checks: 2,799,338.67 Break in Check Sequence due to the following Check # 113738-113777 (Voided checks) Check # 113778 - # 113818 (payroll Checks) Total Valid Checks: Total Void Checks: Total Checks: 155 1 156 BR - Checks by Date (01114/2009-3:47 PM) Page 3

CITY OF LOS BANOS CITY COUNCIL I REDEVELOPMENT AGENCY MEETING MINUTES DECEMBER 17,2008 ACTION MINUTES - These minutes are prepared to depict action taken for agenda items presented to the City Council. For greater detail of this meeting refer to the electronic media (CD and/or audio) kept as a permanent record. CALL TO ORDER: Mayor Jones called the City Council/Redevelopment Agency Meeting to order at the hour of 7:00 p.m. PLEDGE OF ALLEGIANCE. Police Commander Fitchie led the pledge of allegiance. ROLL CALL - MEMBERS OF THE CITY COUNCIL I REDEVELOPMENT AGENCY PRESENT: Tom Faria, Joe Sousa, Mike Villalta, and Tommy Jones; ABSENT: Elizabeth Stone. STAFF MEMBERS PRESENT: City Attorney Vaughn, City Clerk/Human Resources Director Mallonee, City Manager Rath, City Treasurer/Chief Financial Officer Wall, Fire Chief Guintini, Police Commander Fitchie, Interim Public Works Director/City Engineer Fachin, Planning Director Fitzgerald, Redevelopment Agency Director Post, Information Technology Director Spalding. CONSIDERATION OF APPROVAL OF AGENDA: Motion by Faria, seconded by Sousa to approve the agenda as amended. The motion carried by the affirmative action of all City Council / Redevelopment Agency Members present, Stone absent. PRESENTATIONS - PROCLAMATION RECOGNIZING TESSE MAZZINA. Mayor Jones presented the proclamation to Tesse Mazzina. Mayor Jones acknowledged the Employees of the Quarter (Abel Parsad, Dusty Norris, Kim Tomas, and Raul Camarillo) and Employee of the Year (Kim Tomas) that were recognized prior to the evening during the Holiday Open House. PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE COUNCIL ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. JOHN CASTILLO, Los Banos, spoke regarding his concerns with the graffiti in the City and asked the citizens to pay attention to what is going on in their neighborhoods and what their kids are doing; ALAN WILBER, Kiwanis Club of Los Banos, spoke regarding the annual Christmas Eve dinner for the community being held at Fire Station No.1 and asked for volunteers; NORM DONOVAN, Los Banos, spoke as a his experience as a Police volunteer with the graffiti problem and suggested that the citizens take pictures of it when they see it and report it right away and explained the process that the Police Department goes through to abate the graffiti; KEITH SNOW,

Los Banos, be careful driving during the holidays with the fog, the upcoming Citizen Group Finance meeting, people who cannot afford to stay warm in the cold weather; CARYN COX, Los Banos, spoke regarding the Budget Workshop that she attended last night and disappointment about the paperwork that was distributed and the comments she overheard in regards to the employees targeted for layoffs, concerned that nobody is being cut at City Hall and concerns with Council Member Sousa and his personal ties to employees with the City. City Manager Rath spoke regarding the comments made by Caryn Cox, the process of layoffs, and the workshop being held on December 22, 2008 to speak about the budget process; Council Member Sousa spoke to the comments made during the public forum and said that this is not a place for bitterness; Mayor Jones spoke on behalf of Council Member Stone who was not present tonight to defend herself. No one else came forward to speak and the public forum was closed. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Council Member Villalta spoke to item 7L - City Council Resolution No. 5101 - Authorizing the City Manager to Execute an Assignment and Substitution Agreement and Amended and Restated Professional Services Agreement [Community Center Project] and item 7M Redevelopment Agency. Resolution No. 2008-16 - Authorizing the Executive Director to Execute an Assignment and Substitution Agreement and Amended and Restated Professional Services Agreement [Community Center Project], wanting to know if additional funds were to be spent and Redevelopment Agency Director Post stated that no additional funds were to be expended, it is merely a name change. Motion by Sousa, seconded by Faria to approve the consent agenda as follows: Check Register for #113168 - #113343 in the Amount of $819,046.80; Minutes for the December 1, 2008 Adjourned City Council/Redevelopment Agency Meeting; Minutes for the December 3, 2008 City Council/Redevelopment Agency Meeting; Minutes for the December 9, 2008 Adjourned City Council / Redevelopment Agency Meeting; Public Works Capital Project Report for December 2008; City Council Resolution No. 5095 Supporting Congressman Dennis Cardoza's Efforts to Reduce Fixed Mortgage Rates; City Council Resolution No. 5096 - Approving Closure of Non-essential City Offices on December 26, 2008 and January 2, 2009; City Council Resolution No. 5097 - Authorizing Entering into a Lease Agreement with Merced County for Office Space at 825 and 827 Colorado Avenue for the Department of Mental Health; City Council Resolution No. 5098 Approving an Amendment to Division 5 of the City's Policy and Procedures Manual as it Pertains to Waiving City Health Coverage; City Council Resolution No. 5099 - To Tax Defer Member Paid Contribution as it Pertains to California Public Retirement System (CaIPERS); City Council Resolution No. 5100 - For Employer Paid Member Contribution as it Pertains to California Public Retirement System (CaIPERS); City Council Resolution No. 5101 - Authorizing the City Manager to Execute an Assignment and Substitution Agreement and Amended and Restated Professional Services Agreement [Community Center Project]; Redevelopment Agency Resolution No. 2008-16 - Authorizing the Executive Director to Execute an Assignment and Substitution Agreement and Amended and Restated Professional Services Agreement [Community Center Project]. The motion carried by the affirmative action of all City Council/Redevelopment Agency Members present, Stone absent.

PUBLIC HEARING - TO CONSIDER APPLICATION FOR FUNDING UNDER THE FISCAL YEAR'S STATE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND TO SOLICIT CITIZEN INPUT ON POSSIBLE ACTIVITIES TO BE INCLUDED IN THIS APPLICATION; CITY COUNCIL RESOLUTION NO. 5102 APPROVING AN APPLICATION AND CONTRACT EXECUTION FOR FUNDING FROM THE ECONOMIC DEVELOPMENT ALLOCATION OF THE STATE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO WITH THE STATE OF CALIFORNIA FOR THE PURPOSES OF THIS GRANT. Redevelopment Agency Director Post presented the staff report. The public hearing was opened. was closed. No one came forward to speak and the public hearing Motion by Sousa, seconded by Villalta to adopt City Council Resolution No. 5102 Approving an Application and Contract Execution for Funding from the Economic Development Allocation of the State Community Development Block Grant (CDBG) Program and Authorizing the Execution of a Grant Agreerpent and any Amendments thereto with the State of California for the Purposes of this Grant. The motion carried by the affirmative action of all City Council/Redevelopment Agency Members present, Stone absent. PUBLIC HEARING - TO CONSIDER APPLICATION FOR FUNDING UNDER THE NEXT FISCAL YEAR'S STATE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND TO SOLICIT CITIZEN INPUT ON POSSIBLE ACTIVITIES TO BE INCLUDED IN THE APPLICATION. Redevelopment Agency Director Post presented the staff report. The public hearing was opened. was closed. No one came forward to speak and the public hearing No action taken, as this was just a public hearing to receive comment. COMMISSION MEMBER APPOINTMENTS; AIRPORT COMMISSION, ONE (1) VACANCY, TERM EXPIRES DECEMBER 31, 2009; CULTURE & THE ARTS COMMISSION, ONE (1) VACANCY, TERM EXPIRES DECEMBER 31, 2010; PARKS & RECREATION COMMISSION, TWO (2) VACANCIES, TERM EXPIRES DECEMBER 31, 2010. Motion by Sousa, seconded by Jones to continue this item to the January 7, 2009 City Council Meeting. The motion died with a split vote, Sousa and Jones voting yes with Villalta and Faria voting no. City Attorney Vaughn stated that if the Mayor was not ready to make a recommendation, hence there is no recommendation before the Council, they should move on to the next item. City Attorney Vaughn noted that the item would not be continued, but could be reconsidered at any time.

Council Member Villalta asked if that covered every commission listed and City Attorney Vaughn stated that the motion was to continue the item which would include all appointments listed. Council Member Villalta stated that he doesn't believe that the Mayor did not have a recommendation for any of the three commissions and wanted it stated for the record that he is a little skeptical because one Council Member is absent. REDEVELOPMENT AGENCY UPDATE. Redevelopment Agency Director Post reported that they are completing the Redevelopment Agency End of the Year report, is happy that low income housing is completed, still finalizing the Neighborhood Stabilization Program, and thanked the City Council for supporting the business grant and how the RDA is seeking other grants like this for the City. ADVISEMENT OF PUBLIC NOTICES. (NONE) CITY MANAGER I EXECUTIVE DIRECTOR REPORT. City Manager Rath stated that the budget process is going fast, how the State is meeting to address their budget issues and also looking at a three (3) year budget in eighteen (18) month increments, property tax is being discussed and ways to take away additional taxes from the cities, and encouraged all to attend the City Budget Workshop being held on December 22, 2008. CITY COUNCIL I REDEVELOPMENT AGENCY MEMBER REPORTS. MIKE VILLALTA: Wished the community a safe and Merry Christmas and a Happy New Year, reminded the community of the Kiwanis dinner from 11 :00 AM-2:00 PM on December 24, 2008 and to volunteer their time, help out with the graffiti problem by contacting the Los Banos Police Department. TOM FARIA: Wished everyone a great holiday season, the City of Los Banos seal stands as a contract between the City and it's citizens and the City Council and we will do all that we can to make sure that it works, and Los Banos takes care of its people and will continue to take care of its people. TOMMY JONES: Encouraged everyone to spend time this holiday with their families and remember what is really important to them, we will get through this hard time, the State is dealing with billions of dollars in deficit and we need to get through this together, this is a time to look under every single rock and publicly say to the unions that we all just need to give a little and lets meet and discuss ideas. Also spoke regarding garage sales signs and asked the public to put the ad in the newspaper instead of posting these signs around town. JOE SOUSA: Reminded all that the warming center is open and will stay open as the weather dictates, thanked the veterans for allowing them to put up flags on December 7, 2008, congratulated Tesse Mazzina on her proclamation, this budget time is not going to get easy, the council needs to make decision in good times and bad, we all need to get together and get this resolved, it is a general fund issue and it is not something we did but

something that was done to us, wished all a Merry Christmas and a Happy New Year and pray for better time for all of us. ELIZABETH STONE: Absent. CLOSED SESSION - CONFERENCE WITH REAL PROPERTY NEGOTIATORS (PURSUANT TO GOVERNMENT CODE SECTION 54956.8); PROPERTY: 16570 S. MERCEY SPRINGS ROAD, LOS BANOS, APN 083-100-036; NEGOTIATOR: REDEVELOPMENT AGENCY DIRECTOR, EXECUTIVE DIRECTOR, AGENCY ATTORNEY; NEGOTIATING PARTIES: MERCED COLLEGE & LOS BANOS REDEVELOPMENT AGENCY; UNDER NEGOTIATION: PURCHASE PRICE AND TERMS OF SALE. No action taken, advisement to staff only. ADJOURNMENT. The meeting was adjourned at 8:15 p.m. to 6:30 p.m., Monday, December 22, 2008 to attend a Citizen Group Finance Workshop to Review/Discuss the Budget being Held in the Council Chambers, 520 J Street, Los Banos, California. APPROVED: ATTEST: Tommy Jones, Mayor Lucille L. Mallonee, City Clerk

CITY OF LOS BANOS CITY COUNCIL I REDEVELOPMENT AGENCY MEETING MINUTES JANUARY 7,2009 ACTION MINUTES - These minutes are prepared to depict action taken for agenda items presented to the City Council. For greater detail of this meeting refer to the electronic media (CD and/or audio) kept as a permanent record. CALL TO ORDER: Mayor Jones called the City Council/Redevelopment Agency Meeting to order at the hour of 7:01 p.m. PLEDGE OF ALLEGIANCE. Police Commander Fitchie led the pledge of allegiance. ROLL CALL - MEMBERS OF THE CITY COUNCIL I REDEVELOPMENT AGENCY PRESENT: Tom Faria, Joe Sousa, Elizabeth Stone, Mike Villalta, and Tommy Jones STAFF MEMBERS PRESENT: City Attorney Vaughn, City Clerk/Human Resources Director Mallonee, City Manager Rath, City Treasurer/Chief Financial Officer Wall, Fire Chief Guintini, Police Commander Fitchie, Interim Public Works Director/City Engineer Fachin, Planning Director Fitzgerald, Redevelopment Agency Director Post, Information Technology Director Spalding. CONSIDERATION OF APPROVAL OF AGENDA: Motion by Stone, seconded by Sousa to approve the agenda as amended. The motion carried by the affirmative action of all City Council/Redevelopment Agency Members present. PRESENTATIONS - PROCLAMATION RECOGNIZING JOHN SPEVAK. Mayor Jones presented the proclamation to Mr. Spevak who then spoke regarding his years of service and to thank those who were there for him throughout his years of service. PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE COUNCIL ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. Mayor Jones stated that public comment on the budget item will be heard when the budget item is presented and discussed. MIKE NEU, Los Banos, spoke in support of re-appointing Diana Ingram to the Parks & Recreation Commission and also spoke as to how much the commission will miss Tesse Mazzina and John Spevak as commission members; SHIRLEY NAPOLITANO, Los Banos, spoke on behalf of the Soroptimist Program about the Women of Opportunities Award which assists women head of households who desire to change their life but lack resources to do so; MOLLY MOORE, Sophomore FFA Sweetheart Candidate at Los Banos High School, spoke regarding her Valentine's Day fundraising efforts; BONNIE ROBERTSON, Los Banos, spoke on behalf of the

Salvation Army and thanked the local schools for their help and participation in the recent holiday canned food drive and coat drive; ERICA MELLO, Senior FFA Sweetheart Candidate at Los Banos High School, spoke regarding her Valentine's Day fundraising efforts. No one else came forward to speak and the public forum was closed. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Sousa, seconded by Faria to approve the consent agenda as follows: Check Register for #113344 - #113735 in the Amount of $1,384,111.50; Minutes for the December 16, 2008 Adjourned City Council/Redevelopment Agency Meeting; Minutes for the December 22, 2008 Adjourned City Council/Redevelopment Agency Meeting; Request by the Kente Women's Club to Conduct a March and Rally on Martin Luther King Jr. Day, January 19, 2009 Starting at Approximately 11 :00 a.m. and Ending No Later Than 1:00 p.m. from Los Banos City Hall on J Street to the First Baptist Church on D Street, to Include Parts of i h, J, and D Streets in the Downtown Area; City Council Resolution No. 5103 - For Employer Paid Member Contribution as it Pertains to California Public Employees Retirement System (CaIPERS); City Council Resolution No. 5104 - Relating to the Annual Adoption of an Investment Policy; City Council Resolution No. 5105 - Amending the Fiscal Year 2008-2009 Budget by Increasing the Appropriation Amount for the Public Safety Augmentation (Measure P) Fund for a New Police Facility - Capital Outlay in the Amount of $21,217; Redevelopment Agency Resolution No. 2009-01 - Approving the Participation in the Federal Economic Development Administration Grant for an Economic Development/Recruitment Strategy and Master Utilities Plan. The motion carried by the affirmative action of all City Council / Redevelopment Agency Members present. City Manager Rath spoke to the order of the agenda and how the items will be presented., particularly item 11 - Consideration of the City of Los Banos 2008-2009 Budget Update Status Reduction Options. MID YEAR BUDGET REVIEW FOR THE FISCAL YEAR 2008-2009. City Treasurer/Chief Financial Officer Wall presented the staff report, giving a very detailed report which included a PowerPoint presentation. CONSIDERATION OF THE CITY OF LOS BANOS 2008-09 BUDGET UPDATE STATUS & REDUCTION OPTIONS, CITY COUNCIL RESOLUTION NO. 5107 ADOPTING A REVISED BUDGET FOR THE 2008-2008 FISCAL YEAR, INCLUDING AMENDMENTS TO CITY OF LOS BANOS POLICY & PROCEDURES MANUAL DIVISION 4 - SALARY SCHEDULE AND DIVISION 7 - EMPLOYEE CLASSIFICATION. City Manager Rath presented the staff report, giving a detailed report which included a PowerPoint presentation. City Treasurer/Chief Financial Officer Wall spoke to the proposed budget reductions, which included a detailed PowerPoint presentation.

There was Council Member and staff discussion regarding home foreclosure numbers and population. Kelly Tuffo, Labor Attorney with Leibert Cassidy Whitmore, spoke regarding the meet and confer process associated with the proposed layoffs and budget reductions, impacts and effects, ease or avoid those layoffs, trade offs through benefits, and the meeting scheduled for tomorrow. There was further Council Member and staff discussion regarding audience patience and importance for the public to understand the General Fund and the situation before us, possibility of bankruptcy if the City does not respond to the budget situation and the effects that would bring to the City, the plan presented will assist the City for the next 18 months, and homeowners that aren't paying property tax because they know the homes will ultimately be foreclosed. Mayor Jones opened the public forum. GEORGE ALLEN, appreciates what was said about the budget but does not feel that cutting police officers is where we should go because crime will be going up, aside from budget issues there are public safety issues; CARYN COX, Los Banos, spoke regarding the past budget workshop and finance meetings, quoted the FPPC regarding voting with relational ties to employees, requested Council Member Sousa to recuse himself from the decision, $29 million unreserved asset funds, quoted Mayor Jones in regards to City Manager Rath's previous raise, and property taxes for 2008; RYAN SUBIA, Los Banos, is 6 years old and informed the community that he learned how to swim at the public pool and wants to swim there again this Summer and asked the City not to close the pool; NIKKI TUFT, Los Banos, spoke on behalf of the Aquatics program and understands what the City is facing and does not envy the City Council for the choice before them, and can't imagine a summer in any community especially one in triple digits without a community pool; AMBER DAVIS, Los Banos, this isn't about numbers, wants better decisions made by City officials and leaders, cutting police salaries, issue regarding the Police Chief, poor choices made by our city leaders, officer was killed because there was not enough back up on the street; DOUG GORMAN, Operating Engineers 3 Union Representative, spoke of his concern for the proposed cuts, Measure P and how his legal counsel feels they can use Measure P funds to cover the 3 police officers affected by the cuts, spoke to the CAFR report and the unrestricted net assets, how he feels the cuts are wrong and how we will get a charge of unfair labor practices; ANN MCCAULEY, Los Banos, expressed concerns about the City budget, none of us want to lose fire fighters or police officers but to say no to what is being proposed without a solution makes no sense to her, we all need to give up and not hide behind a union contract and not say that "it isn't my problem"; LORENA RODNEY, spoke to how the Los Banos Police once shut down the bars downtown to diffuse a problem but the problem ensued to Denny's Restaurant and when she made the 911 call, 6 squad cars showed up and if it not been for those police officers to show up she doesn't know what would have happened and owes a great deal of gratitude and thanks to the Los Banos Police Department for the fast response, spoke to Proposition 13 and the No Child Left Behind Act, taking away

programs from kids will not help keep out streets safe, we need to come up with a better solution; EMMET DORSET, Los Banos, spoke to the Fire and Police Departments and how they respond to his daughter's medical emergencies, and think of different avenues to cutting services because you could be cutting someone's life; FRED KRINGEL, Operating Engineers 3, spoke to how he finds it interesting that the resolve of budget crisis has not changed over the years, the budget process has not changed and no one has come up with a different idea of how to manage the budget, the way you are suggesting to make cuts does not work, remember that you work for the people and they have asked you to vote no, the City is in essence taking a shift away from the Los Banos Police Department; RAY REYNA, JR., Los Banos Police Officer's Association, spoke regarding how crime is not going down, number of auto thefts, burglaries, vehicle break-ins, drunk drivers, aggravated assaults, the night shift is very busy and spoke to one recent hour and a half span and explained what happened and how outrageous it can become, how the Police Department is dedicated to their jobs and it is not just a job but a way of life, they want to keep the City safe, asked the City to give them the tools to do our job and keep the City safe; NATHAN BOWLING, Los Banos Police Officer's Association, repeated that it's been said that the plan before you is not the best plan but it has been said that we have the best employees so we should have the best plan and would ask that the Council members vote no and try to figure out a plan that will work; RON DYBAS, Los Banos, spoke as to how he believes the City should be able to borrow funds to cover the budget shortfall, spoke to how his friend who works for San Quentin prison took a 10% pay cut but will get 5% back over years, recommended selling City assets like the airport to generate funds for the City of Los Banos, how he originally came to the meeting because of his support for PAL and now supports the vote to be no, asked the City to talk to the unions, his idea for a budget crisis committee, we are not bankrupt yet we still have about 14 months so the City has time, shocked that the City has $29 million in assets and the City should be borrowing against that, and suggested not taking on new projects that can not pay for themselves; DAVID CURIAGA, Business Representative for Operating Engineers, and spoke to the organizations that he represents and spoke to what the City of Watsonville did with work furloughs, the communication throughout the whole process, their City Council took a pay reduction, suggested that the City work with the unions because a better solution is out there than cutting the officers' jobs; MIKE NORDGREEN, Los Banos, supports keeping public safety intact and thanked Council Members Villalta and Faria for their public stance on supporting public safety, spoke of gang uprise, does not want to see anyone lose their jobs, wait on building the community center, and don't make it impact the people; ROGER CERVANTES, Los Banos Realtor, spoke of how he feels about cutting our public safety, graffiti around town, and the need to help sell our town; MATTHEW WEISS, Los Banos Police Officer's Association, spoke regarding the need to remember the Fire Department, people shouldn't be taking pay raises, the City is going to end up being like Merced if the cuts in the Police Department do happen and encouraged the Council to vote no; CHRISTOPHER BORCHARDT, Los Banos Police Officer's Association, spoke regarding campaign promises made including public safety being top priority and how the promises should continue once the candidates were elected, spoke about core services and how some take more dollars and some take less, reiterated that crime is not going down and this is a deciding point, and urged the

Council to vote no tonight because this budget should not be the final answer; PAUL LLANEZ, Los Banos Police Department, spoke of a letter received from Department of Justice US Attorney McGregor Scott regarding the Mario Diaz drug trafficking and the Nuestra Familia prison gang, criminals and convicted murders living in Los Banos and whatwould happen if the City cuts the manpower; DUSTY NORRIS, Los Banos Police Officer's Association, spoke regarding a conversation his wife had with his son, very disturbing comments made by gang members on the street, and crime is here; CAREY REED, Los Banos Police Officer's Association, spoke of retiring within a year with good benefits that was promised 30 years ago and he will be able to do that because people have stood up and didn't let the City take their benefits away, every job is important to the quality of life in Los Banos, and would like more time to go over the budget with their union; NOAH JONES, Los Banos Police Officer's Association, spoke regarding his concerns with laying off any Police Department employees, hardly anyone ever retires from the City, how hard it will be to recruit new police personnel when the City is known to layoff police officers, if we take cuts it will be harder to attract young new officers, if these cuts take place then other officers will leave, Los Banos is not the small community that it used to be, encouraged the Council to consider their decision tonight, it will impact the City for years; PRESTON JELEN, Los Banos Police Officer's Association, apologized to the community if the Council decides to move forward with this decision tonight and spoke of criminals here that will shoot at anybody and the people will suffer; LEANN CROCKER, Los Banos, spoke as a police volunteer and her personal experience with law enforcement, concerned with budget cuts, infant son was saved by the Fire Department, asked the Council to take a look at the world today and cut in other areas to save the jobs in the Police Department, Measure P should be used for the Police and Fire Department, feels the needs of public safety, and asked the Council to do the right thing and say no to public safety being cut; BILL MAYEM, Los Banos, spoke of creative solutions that are needed, the unions need to be talked to, suggested replacing the services that are being cut with volunteers, encouraged staff to talk to the unions; NORM DONOVAN, Los Banos, spoke of hearing a lot of comments but not a lot of solutions, the Council has a hard job to do and would hope that they could delay the decision a couple weeks to come up with another solution, suggested paying extra on the utility bills for Police and Fire Departments, doesn't want to see any of the Police and Fire Departments' employees lose their jobs; JASON HEDDEN, Los Banos Police Officer's Association, spoke regarding part of his job being talking to gang members, has been taunted by gang members about they layoffs, number of documented gang members, asked Council to explore other options and give them time to work with the unions. No one else came forward to speak and the public forum was closed. There was Council Member and staff discussion regarding selling the community center land, the airport as a valuable piece of property, cutting the Chamber of Commerce and maybe they could move out to the airport and manage that to help out the Chamber of Commerce, creating new commissions from RDA funds, Measure P funds and what it can be used for, the enterprise funds and what it supports, the meet and confer process between the City and the unions, in the resolution there is that consideration for the

meet and confer, spoke to how she was in favor of everyone giving a little but we can not, some of the pressure can be redirected to the unions as well, some misconceptions the public and some employees have, the City Manager froze positions 16 months ago, bankruptcy is not an option for our city, the community center project and not being able to use RDA funds for General Fund needs, every position is important, not just public safety, other communities are not as hurt as we are, must meet with the unions to see what they will bring to the table, the need to save each other, concerns with the maintenance and operation of the community center, the basics that a City needs to provide, the City Council is the voice of the people and needs to do what the community wants, DBE contamination issues, tabling this budget amendment until the January 21, 2009 meeting, the need to protect police and fire, our country in a depression, everyone needs to take cuts, cannot allow this city to go bankrupt, City will have to layoff more if we do not take action soon, City population is decreasing, the City ought to be pursuing selling the airport it could generate $40-60 million in revenue, it is an asset that would benefit the whole community and the property tax it would generate, the City knew about this the beginning of the year and most departments cut funds in the general fund because of the declining revenue, if we put this plan into action we can't save everyone but we can save a majority of our employees, the need for creative solutions, all of the suggestions the City received were considered and addressed in the agenda packet, and the Police Department and their union is able to save their positions. Motion by Faria, second by Villalta to continue the item to the January 21, 2009 City Council/Redevelopment Agency meeting. The motion failed by the following roll call vote: AYES: Faria and Villalta; NOES: Sousa, Stone, Jones; ABSENT: none. Motion by Sousa, seconded by Stone to adopt City Council Resolution No. 5106 Adopting a Revised Budget for the 2008-2008 Fiscal Year, including Amendments to City of Los Banos Policy & Procedures Manual Division 4 - Salary Schedule and Division 7 - Employee Classification. The motion carried by the following roll call vote: AYES: Sousa, Stone, Jones; NOES: Faria and Villalta; ABSENT: none. PUBLIC HEARING - TO CONSIDER A USE PERMIT FOR A TYPE 41 ALCOHOL LICENSE TO PERMIT THE ON-SALE OF ALCOHOL IN CONJUNCTION WITH AN EATING PLACE. THE REQUESTED USE PERMIT IS FOR CECILIA'S' DELI/MARKET LOCATED AT 455 H STREET, APN: 025-181-009, CITY COUNCIL RESOLUTION NO. 5106 - APPROVING USE PERMIT #2008-11 FOR ON-SALE BEER AND WINE SALES IN CONJUNCTION WITH AN EATING PLACE AT 455 H STREET FOR CECILIA'S DELI/MARKET. Planning Director Fitzgerald presented the staff report. City Attorney Vaughn wanted the record to reflect that Council Member Villalta left his seat at the dais due to conflict of interest of ownership of property within 500 feet of the applicant's location.

The public hearing was opened. JIM DUEVAL, Los Banos, spoke regarding his concerns for the operating hours, serving alcohol on the outside patio, and the noise level and music that would accompany. No one else came forward to speak and the public hearing was closed. Planning Director Fitzgerald spoke to the comments made during the public forum. There was Council Member and staff discussion regarding this being an oversight, special use permit, administrative permit, and neighborhood notification. Motion by Stone, seconded by Sousa to adopt City Council Resolution No. 5106 Approving Use Permit #2008-11 for On-Sale Beer and Wine Sales in Conjunction with an Eating Place at 455 H Street for Cecilia's Deli/Market. The motion carried by the affirmative action of all City Council/Redevelopment Agency Members present, Villata abstained. Council Member Villalta returned to his seat at the dais. CONSIDERATION OF APPROVAL OF AN AGREEMENT FOR TEMPORARY TRANSFER OF VEHICULAR EQUIPMENT BY AND BETWEEN THE STATE OF CALIFORNIA AND THE CITY OF LOS BANOS FIRE DEPARTMENT & AUTHORIZATION FOR THE MAYOR TO EXECUTE THE AGREEMENT. Fire Chief Guintini presented the staff report. There was City Council and staff discussion regarding the use of the truck when out on strike force and impact fees for equipment. Motion by Faria, second by Villalta to approve the Agreement for Temporary Transfer of Vehicular Equipment by and between the State of California and the City of Los Banos Fire Department and Authorization for the Mayor to Execute the Agreement. The motion carried by the affirmative action of all City Council/Redevelopment Agency Members present. COMMISSION MEMBER APPOINTMENTS; AIRPORT COMMISSION, ONE (1) VACANCY, TERM EXPIRES DECEMBER 31, 2009; CULTURE & THE ARTS COMMISSION, ONE (1) VACANCY, TERM EXPIRES DECEMBER 31, 2010; PARKS & RECREATION COMMISSION, TWO (2) VACANCIES, TERM EXPIRES DECEMBER 31, 2010. Mayor Jones informed the Council that the City Clerk's office did not receive any applications for the Airport Advisory Commission; therefore the vacancy shall remain open. Motion by Jones, second by Faria to appoint Robert Huddleston to the Culture and Arts Commission to a full term expiring December 31, 2010. The motion carried by the affirmative action of all City Council / Redevelopment Agency Members present.

Council Member Faria spoke to former Parks and Recreation Commissioner Diana Ingram not being reappointed and, for the record, played an audio recording of a discussion from a previous council meeting in regards to Mrs. Ingram's appointment. Council Member Villalta left his seat at the dais due to a conflict of interest being that Mrs. Ingram is a tenant of his. Mayor Jones spoke regarding the choices he made for appointment. Council Member Stone spoke regarding serving on the ad hoc committee for selection the commissioners. Motion by Jones, second by Sousa to appoint John Castillo and Denise Lilledahl to the Parks and Recreation Commission to full terms, each expiring December 31, 2010. The motioned carried by the affirmative action of all City Council/Redevelopment Agency Members present, Faria voting No and VillaIta abstaining. Motion by Jones, second by Faria to advertise the vacancy of the Airport Advisory Commission. The motioned carried by the affirmative action of all City Council / Redevelopment Agency Members present. REDEVELOPMENT AGENCY UPDATE. Redevelopment Agency Director Post reported that the Redevelopment Agency will be offering a zero interest home rehabilitation loan for lower income home owners; next month will be the opening of the Los Banos Family Apartments which consist of 105 units, they are accepting applications and screening prospective residents now, and invited the council to tour the apartments; and the Microenterprise loan went to an applicant today that will be opening a mechanic shop on Pacheco Boulevard. ADVISEMENT OF PUBLIC NOTICES. (TWO REPORTS) Planning Director Fitzgerald reported that there will be a Public Hearing at the January 14, 2009 Planning Commission meeting for a large family daycare on N. Santa Monica Street. Planning Director Fitzgerald reported that there will be a Public Hearing at the January 14, 2009 Planning Commission meeting for a site plan review for the Ballard building. CITY MANAGER I EXECUTIVE DIRECTOR REPORT. Nothing to report. CITY COUNCIL I REDEVELOPMENT AGENCY MEMBER REPORTS. TOM FARIA: Hopes everyone had a wonderful holiday and Council will do all they can to keep the ship afloat. TOMMY JONES: Spoke of this being a very difficult time with very difficult decisions and the city is the Council's most important responsibility.

JOE SOUSA: Spoke of this being a sad time for our society, hopes that people bring solutions to the table, encouraged the community to pray for us and pray for our city. ELIZABETH STONE: Thanked Redevelopment Agency Director Post for the work she has done with the Ward Road Apartments, announced yesterday the Planning Department held the first of three Housing Element meetings and encouraged members of the public to come out to the meetings, the next Housing Element meeting is on January 12, 2009 at 3:30 PM at the Child Development Center and the third Housing Element meeting is on January 20, 2009 at 5:30 PM at the United Methodist Church, thanked the Kiwanis Club for their Christmas Eve dinner and was able to see first hand the difference they made, thanked the volunteers for that event, and supports Measure P initiative to go on the ballot. MIKE VILLALTA: Wished everyone a Happy New Year, the Kiwanis dinner was wonderful and proud to be a part of that, and the Rotary Club collected and purchased 120 coats for kids on the angel tree. ADJOURNMENT. Motion by Stone to cancel the adjournment of the meeting to 8:30 a.m., Friday, January 9,2009 to Attend a City Council Goals and Objectives Workshop being Held at the Child Development Center, 1624 San Luis Street, Los Banos California and the meeting was adjourned at 11 :50 p.m. The motioned carried by the affirmative action of all City Council/Redevelopment Agency Members present. APPROVED: ATTEST: Tommy Jones, Mayor Lucille L. Mallonee, City Clerk

Agenda Staff Report TO: FROM: DATE: Mayor & City Council Mark Fachin, P.E., Interim Public Works Director! City Engineer January 21,2009 1fj~~ SUBJECT: Acceptance of Public Improvements and Release of Construction Bonds for Tract 99-02, Regency Park Estates Unit 6, Ranchwood Contractors TYPE OF REPORT: Consent Agenda Recommendation: 1. Accept the Public Improvements for Tract 99-02, Regency Park Estates, Unit 6. 2. Release the construction bonds associated with Tract 99-02, Regency Park Estates, Unit 6. Background: Regency Park Estates Unit 6 is a 55 lot residential unit constructed by Ranchwood Contractors. This unit is a portion of the seven unit residential subdivision named Regency Park Estates. Regency Park Estates is located east of Mercey Springs Road and north of Overland Avenue. It also abuts the western side of Place Road. Discussion: The public improvements associated with Regency Park Estates, Unit 6 are complete and ready to be accepted.

Staff is requesting release of the following construction bonds: 1. Faithful Performance 2. Payment 3. Monument $384,103.00 $192,052.00 $3,500.00 There is a warranty bond of $97,853.00 in place and will extend for one year from the date of acceptance. Fiscal Impact: The acceptance of the development will add 55 residential lots to the City of Los Banos. The addition of housing to the City of Los Banos will require the typical services that the City provides. As the City adds more residential dwellings the City services must expand to accommodate the demand. Regency Park Estates Unit 6 will be incorporated in Landscape and Lighting Assessment District #14. Reviewed by: St~~, City Manager Attachments: Exhibit 1 - Regency Park Estates, Unit 6 Location Map Resolution

Page 1 of 1 ~~,jlois Banos,rA'~w ~:.o/. ',;".""",,1','(1 Regency Park Estates Unit 6 tn ----- 496ft CityGIS Copyright @2006 All Rights Reserved, The information contained herein is the proll'ietary property of the contributor supplied under license and may not be approved except as licensed by Digital Map ProdUcts. http://maps.digita1mapcentral.com/production/citygis/v07_01_059/index.htm1 1/12/2009

RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS BANOS ACCEPTING PUBLIC IMPROVEMENTS FOR REGENCY PARK ESTATES, UNIT 6 AND RELEASE OF ASSOCIATED CONSTRUCTION BONDS WHEREAS, the City Council of the City of Los Banos has received a request from the developers of Regency Park Estates, Unit 6 that the Public Improvements for Regency Park Estates, Unit 6 improvements be accepted by the City of Los Banos, and, WHEREAS, the City Council of the City of Los Banos has reviewed said request and finds that the Public Improvements of said project are in a position to be accepted by the City of Los Banos, and, WHEREAS, construction bonds in association with Regency Park Estates, Unit 6 shall be released. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby accept the Public Improvements for Regency Park Estates, Unit 6 and release the construction bonds, as presented. The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21st day of January 2009, by Council Member who moved its adoption, which motion was duly seconded by Council Member and the Resolution adopted by the following vote:. AYES: NOES: ABSENT: APPROVED: ATTEST: Tommy Jones, Mayor Lucille L. Mallonee, City Clerk

Agenda Staff Report TO: FROM: DATE: SUBJECT: Honorable Mayor & City Council Members Mark Fachin, P.E., Interim Public Works Director/City Engineer~ January 21, 2009 Regional Transportation Impact Fee Ordinance Amendments TYPE OF REPORT: Public Hearing Recommendation: That the City Council waive the first reading and introduce the Ordinance amending Chapter 18 of Title 3 of the Los Banos Municipal Code relating to the Regional Transportation Impact Fee (RTIF) for non-residential development. Background: At the August 20, 2008 City Council meeting, Council adopted Resolution No. 5020 approving the implementation of the updated RTIF Study, approved by Merced County Association of Governments (MCAG) Governing Board at their January 17, 2008 meeting. The updated study insures that new development contributes to the cost of providing adequate transportation improvements necessary to accommodate housing, commercial, and industrial construction. The updated study also reflects project cost increases for several projects included in the initial RTIF program, including the Los Banos Bypass project. The City Council, at their September 3, 2008 meeting, adopted Ordinance No. 1073, which allowed for the residential RTIF fees to be raised to the amount as outlined in the RTIF study; the non-residential RTIF fees remained at their current level. In July 2008 the City received confirmation from Caltrans that District 10 Management supported contributing $36 million in State and Federal funds for the construction of the first phase of the Los Banos Bypass project providing that MCAG and the City commit to providing the following items:

1. $9.6 million is committed to acquire RIW parcels for Wastewater Treatment Plant Expansion and Phase I construction of the Highway 152 Bypass; 2. City agrees to provide, through MCAG, right-of-way services to acquire all 59 parcels for this project, using RTIF and other funds; 3. City agrees to provide environmental clearance for the excavated fill to be used for the Los Banos Bypass project; and 4. Excavated fill for the Los Banos Bypass will be taken within the footprint of the Wastewater Treatment Plant expansion area. The City Council adopted Resolution No. 5072 at their meeting on September 17, 2008, which committed the City to pursuing this course of action and partner with the State of California Department of Transportation and MCAG to complete a full funding plan for Phase I of the Los Banos Bypass Project. Discussion: The proposed amendments to the Ordinance includes the revision to the transportation impact fee schedule for non-residential development: Land Use Category Retail Commercial, General: Retail Commercial, High Turnover: Retail Commercial, Low Turnover: Retail Commercial, Over 50,000 sq. ft.: Office Commercial: Industrial/Ag Processing: Current RTIF $ 1,970 $ 5,741 $ 1,321 $ 3,402 $ 1,586 $ 670 Proposed RTIF $ 4,146 $ 12,082 $ 2,780 $ 7,161 $ 3,337 $ 1,409 The adoption of the revised transportation impact fee schedule for non-residential development is an essential component of the funding stream necessary to assure that the first phase of the Bypass is completed. The public hearing was noticed by publication on January 9, 2009 in the Los Banos Enterprise. Impact to the Community: The RTIF fees are paid by new development within the City to assure that a regional transportation system is adequate to meet the future transportation demands for this area. Without a % cent sales tax measure, which is common in most other areas of the State, the RTIF is one of the few financial mechanisms available to fund the necessary regional projects.

Fiscal Impact: The adoption of this revised fee will not have any impact on existing businesses or existing residents within the City. This fee will be paid by developers for non-residential commercial projects, and will be paid upon development of those projects. Reviewed by: stevejj~ger Attachments: Public Hearing Notice published January 9, 2009 Resolution No. 5020 adopted August 20, 2008 Ordinance No. 1073 adopted September 3, 2008 Resolution No. 5072 adopted September 17, 2008 Ordinance introducing amendments to Title 3, Chapter 18

CITY OF LOS BANOS NOTICE OF PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON AMENDMENTS TO THE CITY OF LOS BANOS' REGIONAL TRANSPORTATION IMPACT FEE (RTIF) ORDINANCE, SPECIFICALLY CHAPTER 18 OF TITLE 3 OF THE LOS BANOS MUNICIPAL CODE WHERE: City Council Chambers 520 J Street Los Banos, California WHEN: January 21, 2009 7:00 PM Notice is hereby given that the Los Banos City Council will conduct a Public Hearing to receive public comment on the City's proposed amendments to Chapter 18 of Title 3 of the Los Banos Municipal Code, Regional Transportation Impact Fee (RTIF). Amendments to the ordinance include the revision to the transportation impact fee schedule for non-residential development. The Public Hearing will be held at the regular meeting of the Los Banos City Council on Wednesday, January 21,2009 at 7:00 p.m. in the Council Chambers at Los Banos City Hall located at 520 J Street, or as near as possible thereafter, at which time and place interested persons may appear and be heard thereon. Questions regarding the above-referenced item may be directed to Mark Fachin, Interim Public Works Director/City Engineer at the Public Works Department, 411 Madison Avenue or at (209) 827-7056. All interested persons will be given an opportunity to comment on this item at the Public Hearing. In addition, written comments may be submitted to the City Council at or prior to the hearing, mailed to 411 Madison Avenue, Los Banos, CA 93635, Attention: Mark Fachin, Interim Public Works Director. Please reference hearing title and date of hearing in any correspondence. It is the intention of the City to comply with the Americans with Disabilities Act (ADA). If you require special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manlier. Please contact the City Clerk's Office at (209) 827-7000 at least 48 hours prior to the meeting to inform us of your particular needs. THE CITY OF LOS BANOS MARK FACHIN INTERIM PUBLIC WORKS DIRECTOR/CITY ENGINEER Legal January 9, 2009

RESOLUTION NO. 5020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS BANOS APPROVING THE IMPLEMENTATION OF THE UPDATED REGIONAL TRANSPORTATION IMPACT FEE STUDY APPROVED BY MERCED COUNTY ASSOCIATION OF GOVERNMENTS (MCAG) GOVERNING BOARD WHEREAS, the City Council of the City of Los Banos adopted Resolution No. 4608 on May 4, 2005 approving the implementation agreement authorizing the Merced County Association of Governments (MCAG) to manage and administer the Regional Transportation Impact Fee (RTIF) program; and WHEREAS, in accordance with State Law requiring annual RTIF review, the MCAG Governing Board at their January 17, 2008 meeting, completed its annual review of the RTtF program with the approval of an updated RTIF Study; and WHEREAS, said Study, as presented, has been reviewed and examined by the City Council of the City of Los Banos. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby approve the implementation of the updated Regional Transportation Impact Fee Study approved by Merced County Association of Governments (MCAG) Governing Board. The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 20 th day of August 2008, by Council Member Villalta who moved its adoption, which motion was duly seconded by Council Member Brooks and the Resolution adopted by the following vote: AYES: NOES: ABSENT: Council Members Brooks, Faria, Sousa, Villalta, Mayor Jones None None APPROVED: ATTEST: ';j,r:iae'ir. ~ Lucille L. Mallonee, City Clerk

ORDINANCE NO.1073 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS BANOS AMENDING CHAPTER 18 OF TITLE 3 OF THE'LOS BANOS MUNICIPAL CODE RELATING TO THE REGIONAL TRANSPORTATION IMPACT FEE (RTIF) The City Council of the City 9f Los Banos does ordain as follows: WHEREAS, the City Council in May- 2005, adopted a Resolution approving the initial RTIF Study prepared by Merced County Association of Governments (MCAG); and WHEREAS, in accordance with State Law requiring annual RTIF review, the MCAG Governing Board at theirjanuary 17, 2008 meeting, completed its annual review of the RTIF program with the approval of an updated RTIF Study; and WHEREAS, provisions in the Municipal Code relating to the RTIF need to be updated. Section 1. Chapter 18 of Title 3 of the City of Los Banos Municipal Code is hereby revised to read as follows: Title 3 FINANCE Chapter 18 REGIONAL TRANSPORTATION IMPACT FEE (RTIF) Sections: Sec. 3-18.01 Sec. 3-18.02 Sec. 3-18.03 Sec. 3-18.04 Sec. 3-18.05 Sec. 3-18.06 Sec. 3-18.07 Sec. 3-18.08 Sec. 3-18.09 Sec. 3-18.10 Sec. 3-18.11 Sec. 3-18.12.Sec. 3-18.13 Sec. 3-18.14 Sec. 3-18.15 Sec. 3-18.01 Intent. Intent. Purpose. Specific Findings. Definitions Applicability. Establishment of regional transportation impact fee. Findings. Exemptions. Credits. Collection of Fee. Regional transportation impact fee fund. Appeal process Annual fee an.d program review. Severability. Effective Date. (a) The City Council of the City of Los Banos finds that future development within the County of Merced to'the year 2030 will result in traffic volumes in excess of capacity on the regional system of arterials, highways, and freeways as designated in this Ordinance. (b) The City Council of the City of Los Banos finds that failure to expand the capacity of the existing circulation system will result in new development causing unacceptable levels congestion on the arterials, highways, and freeways of the regional system. (c) The City Council also finds and declares that, in the absence of this chapter imposing a fair-share traffic fee upon new development, existing and future sources of revenue are inadequate to fund substantial portions of the regional i

transportation system improvements needed to avoid unacceptable levels of congestion and related adverse impacts caused by new development. Sec. 3-18.02 Purpose. (a) The City Council of the City of Los Banos finds and determines that adoption of this regional transportation impact fee ordinance will raise additional revenues needed to construct improvements to accommodate traffic that will be generated by new development within the County and City of Los Banos. (b) The City Council also finds and declares that the Regional Transportation Impact Fee Study (MCAG, January 18, 2008) has determined the extent to which the new development of land will generate traffic volumes impacting the roadway system and that this chapter establishes a fair and equitable method for distributing unfunded costs of transportation improvements necessary to accommodate traffic volumes generated by such development. Sec. 3-18.03 Specific Findings. The need for regional transportation improvements and for the regional transportation impact fee established by the ordinance codified in this ctiapter are based on the finding of the Regional Transportation Impact Fee Study prepared by the Merced County Association of Govemments whose Governing Board is composed of City Council members.and County Supervisors from the County's six (6) cities and the County Board of Supervisors. The study has established that growth to the year 2030 will affect the entire regional transportation system and therefore that the area of impact for future development is appropriately the entire County of Merced. The Study made the following additional findings: (a) Population and employment within the County of Merced is anticipated to increase by ninety-eight (98%)" percent and eighty-two (82%) percent, respectively by the year 2030 and will result in Levels of Service E and F (as defined in the Highway Capacity Manual, 6 th edition) on existing arterials, highways, and freeways. (b) The Regional Transportation Plan (MCAG, 2007) modeled and evaluated the effect of projected growth to the -year 2030 on all major arterials, highways, and freeways in Merced County and found that without expansion, the transportation system would suffer severe congestion. Further, the plan showed that the recommended transportation improvements would accommodate the traffic anticipated in the year 2030 at the desired Level of Service D. (c) Existing and future sources of public revenues are insufficient to fund all the needed transportation improvements. (d) The revenues generated by this regional transportation impact fee will provide additional funds necessllry to construct the transportation improvements and will help provide the additional capacity needed in the year 2030 to accommodate the traffic generated by new development in the Cities and County of Merced. (e) The regional transportation impact fee is a fair and equitable method of distributing the cost of transportation improvements among the development that will generate the increased traffic. Sec. 3-18.04 Definitions. (a) "Merced County" means the unincorporated areas of the County of Merced and the incorporated areas of the six (6) cities within Merced County. (b) "Regional system" means the following street, road, and highway segments: 2

(1) State Highways: the portions of Interstate 5 and State Routes 33, 59, 99,140,152,165 that lie within Merced County. (2) Bradbury Rd. from Hwy. 165'to Hwy. ~9. (3) Bloss Ave. from Hwy. 165 to Hwy. 99. (4) Westside Blvd. from Hwy. 165 to Hwy 99. (5) Lincoln Blvd. from Hwy. 140 to Peach Ave. in Livingston. (6) Main St. in Livingst9n from Peach Ave. to Hwy. 99. (7) Livingston-Cressey Rd. from Hwy. 99 to Santa Fe Ave. (8) Olive Ave. from Livingston-Cressey Rd. in Livingston to Santa Fe Ave. in Winton. (9) Santa Fe Ave. from the Stanislaus County line to Hwy. 59 / Olive Ave. in Merced. (10) Santa Fe Ave. from Plainsburg Rd. in Planada to the Madera County line.. (11) Applegate Rd. from Hwy. 140 to Hwy. 99 in Atwater. (12) Winton Way from Hwy. 99 in Atwater to Santa Fe 'Ave. in Winton. (13) Buhach Rd. from Hwy. 140 to Santa Fe Ave.. (14) Bellevue Rd. from Hwy. 99 to Lake Rd. or the Campus Parkway, including gaps. (15) Olive Ave. in Merced from Hwy. 59 to Campus Parkway. (16) G St. in Merced from Hwy. 99 to Bellevue Rd. (17) Mission Ave. from Hwy. 59 to Campus Parkway. (18) Plainsburg Rd. from Hwy. 99 to Hwy. 140. (19) Sandy Mush Rd. from Hwy. 59 to Hwy. 99. (20) Henry Miller Avenue-east from Interstate 5 in Santa Nella, across State Route 165 to Turner Island Road. (21) Los Banos to Gustin'e Route-along Volta Road, Ingomar Grade, Cottonwood Road and Hunt Road to Gustine. (22) Sandy Mush RoadlTurner Island Road-west from State Route 99, across State Route 59 to Turner Island Road and south to State Route 152. (23) Washington Road-from Indiana Avenue to Highway 59. (24) Hutchins Road-from Carlucci Road to Indiana Avenue. (25) Indiana Avenue-from Highway 152 to Washington Road. (26) Walnut Avenue-in the County, from Livingston to Santa Fe Drive. (27) Le Grand Road-in the County, from Hwy 99 to Santa Fe Avenue. (28) Minturn Road-in the County, from Le Grand Road to the Madera County line. (29) Oakdale Road-in the County, from Highway 59 to the Stanislaus County line. (30) La Grange Road-in the County, from Highway 59's termination in Snelling to the Stanislaus County line. (31) Merced Falls Road-in the County, from Highway 59's termination in Snelling to the Mariposa County line. (32) The future Campus Parkway-from Highway 99 to end of route at Yosemite Avenue or UC Merced County. (33) Gurr Road-from Stale Route 140 near the McSwain area to Sandy Mush Road. (c) The "Regional transportation plan" means the document adopted by the Merced County Association of Governments on May 17, 2007. (d) "Average weekday peakrhour trips" mean the average number of peak-hour vehicle trips to or from a designated land use Monday through Friday. (e) "Peak-hour" means the one-hour long period during which the maximum amount of traffic occurs. Often the peak-hour is a rush period when commuters travel to and from work. (f) ''Trip generation rate" means the number of average weekday peak-hour trips generated by a particular land use. The land use categories correspond to those used in the regional travel model maintained by MCAG. The trip 3

generation rate for each land-use category is the rate published by the Institute of Transportation Engineers, 6 th Edition. The land use categories and peak-hour trip generation rates are as follows: Residential, single-family 1.00 trips per (lte Code 210)- dwellinq unit Residential, multi-family" 0.61 trips per (lte Code 220) dwellinq unit Retail commercial, general 1.86 trips per 1,000 (ITE Codes 800-912 except sq. ft. floor area those listed below) Retail commercial, high 10.86 trips per 1,000 turnover (ITE Codes 83~-837, sq. ft. floor area 844-847,851-853,911-912) Retail commercial, low 1.25 trips per 1,000 turnover (ITE Codes 814, sq. ft. floor area 823,848,860,862,890) Retail commercial, over 3.58 trips per 1,000 50,000 sq. ft. gross floor area sq. ft. floorarea (ITE Code 820, and any 800-999 with 50,000+ sq. ft.) Office commercial (ITE Codes 1.79 trips per 1,000 710-770) sa. ft. floor area Industrial (ITE Code 110-170) 0.75 trips per 1,000 sa. ft. floor area (g) "Developmenf means any discretionary or ministerial action by the City resulting in the issuance of grading, building, plumbing, mechanical, or electrical permits, conditional use permits or certificates of occupancy issued bythe City to construct, to change the use of, a building orproperty. Where development applies to a change in use of, or enlargement of an existing building, the average weekday peak-hour trips shall be only the additional trips in excess of those associated with the existing use. (h) "Merced County Association of Governments" means the joint powers agency delegated to manage and administer the regional transportation impact fee and whose members are. the incorporated Cities and the County of Merced. (i) "Merced County Association of Governments Regional Transportation Impact Fee Trust Fund" or "trust fund" means the account to which regional transportation impact fees collected under this chapter are deposited with the Merced County Treasurer by the Cities and County for any lawful use as provided in this chapter. 0> "Regional Transportation Impact Fee Policy Board" (RTIF Policy Board) means those members of the MCAG Governing Board whose appointing jurisdiction has adopted the ordinance codified in this chapter. Sec. 3-18.05 Applicability. This chapter shall apply only to new development and to any reconstruction of. existing buildings that will generate additional vehicular trips. The provisions of this chapter shall take effect October 3, 2008. Sec. 3-18.06 Establishment of regional transportation impact fee. (a) The regional transportation impact fee is not intended to be the sole source of funding for construction of the regional system. Furthermore, the total amount of fees collected pursuant to this chapter shall not exceed the cost of construction of the regional system. 4

(b) The Merced County Association of Governments has calculated the regional transportation impact fee according to the following procedure: (1) MCAG determined the total costs of the regional transportation improvements. (2) MCAG established a capital improvements program. This will include each regional transportation improvement project with its total project cost, and sources of funds to pay for the project, specifically showing the amount for each project to be funded through the regional transportation impact fee. (3) MCAG determined the total amount to be funded by the fee by summing the fee shares of each project in the capital improvements program. (4) MCAG determined the total number of peak-hour trips associated with new development, for each land use category listed in Section 3-18.04(f) of this chapter, by using the MCAG traffic model and subtracting the number of peak-hour trips generated in Merced County by each category in the year 2005 from the number of such trips generated by the same category in the year 2030. (5) MCAG determined a per-trip cost by dividing the total amount to be funded by the fee by the total number of trips associated with new development. (6) MCAG determined a cost per unit of development for the land use categories listed in Section 3-18.04(f) of this chapter. This cost will be calculated by multiplying the per-trip cost by the average peak-hour trips per unit of development. Units of development will be dwelling units for residential land uses, and 1,000 square feet of floor area for commercial, industrial, and other land uses. (7) The fee for each new development is calculated by multiplying the cost per unit of development by the number of units being developed., (c) As shown in the regional transportation impact fee study, MCAG has determined that the cost per peak-hour trip is Three Thousand One Hundred Fifteen and No/10aths ($3,115.00) Dollars. (d) The regional transportation impact fee study has calculated the following transportation impact fee schedule for these land use categories: Residential, sinale-familv $3,115 per dwelling unit Residential, multi-familv $1,892 per dwelling unit Retail commercial, $1,970 per 1,000 sq. ft. aeneral floo(area Retail commercial, high $5,741 per 1,000 sq..ft. turnover floor area' Retail commercial, low $1,321 per 1,000 sq. ft. turnover floor area Retail commercial, over $3,402 per 1,000 sq. ft. 50,000 sq. ft. floor area Office commercial $1,586 per 1,000 sq. ft. floor area IndustriaVAg processing $670 per 1,000 sq. ft. floor area (e) Should the applicant believe the.land use category in subsection (d) of this section is not appropriate for their application, the applicant may propose a more appropriate development category, subject to the approval of the City Manager or their designee, and alternative trip generation rate from the ITE Trip Generation Code noted in this chapter for use in calculation of the appropriate trip generatiqn rate, or; 5

(f) Should the applicant believe the land use category in subsection (d) of this section is not appropriate for their application, the applicant may have prepared, at their own expense, a trip generation study conducted by a licensed traffic engineer "that forecasts the anticipated peak-hour trips for the proposed development. The study procedure and results shall require the approval of the City Manager or their designee. Sec. 3-18.07 Findings. The City Council finds that the RTIFS: (a) Identifies the purpose of the RTIF; (b) Identifies the use to which the fee will be put, including specific facilities; (c) Demonstrates a reasonable relationship between the fee's use and the type of development project on which the fee is imposed; (d) Demonstrates a reasonable relationship between the need for the public facility and type of development project on which the fee is imposed; and (e) Shows a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. Sec. 3-18.08 Exemptions. The following developments are exempted from payment of the fee required by this chapter: The reconstruction of any building that has been destroyed by fire, flood, or natural disaster so as the reconstructed building both continues the prior use and generates the same or fewer trips as the original building. Sec. 3-18.09 Credits. (a) Where an applicant, otherwise subject to this chapter dedicates and/or improves those regional roads, highways, or freeways identified in Exhibit A of this chapter beyond the requirements established in subsection (b) of this section, the applicant shall receive a credit against his regional transportation impact fee. That credit shall be an amount equal to the land value of dedicated land and/or the actual engineering and construction costs incurred at the time of the development to the extent that the MCAG has included those costs in its estimated cost of constructing the regional system. (b) The fee required by this chapter shall be supplementary to any fees and conditions imposed upon projects under the provisions of the Subdivision Map Act, Califomia Environmental Quality Act, and other State and local laws, ordinances, or administrative policy which may authorize the imposition of conditions or contributions on development and the applicant shall not be entitled to anycredits for such contributions or conditions.. (c) The in-lieu-of-fee credit for any land dedications shall be based on the fair market value of the land dedicated as determined by an appraisal process with consultation with MCAG. (d) Should the in-iieu-of-fee credit exceed the applicant's total fee, the difference may be credited against any of the applicant's future development which would be subject to the fee, or a reimbursement agreement may be entered into. (e) Should a developer be required to provide improvements which benefit adjacent undeveloped land, the developer may be reimbursed for a proportionate share of the cost of such improvements under special agreements with MCAG and contingent upon future fees contributed from other benefited developments. In. all cases, however, reimbursements under 6

such special agreements must be timed to coincide with construction of the transportation project as'scheduled in the Capital Improvement Plan adopted by MCAG. Sec. 3-18.10 Collection of fee. The RTIF shall be collected at the time when the City grants an occupancy permit for residential structures or at the time of the issuance of a building permit for nonresidential structures. For a change of use or other development subject to this chapter, that would not require a building permit, the fee shall be collected at the time of the issuance of a use, development, or business license permit, whichever occurs first. Sec. 3-18.11 Regional transportalion impact fee fund. (a) All monies collected from payments of the regional transportation impact fee shall be deposited with the County Treasurer of Merced County.in the trust fund. (b) All monies in the trust fur:ld shall be used solely for the delivery of the regional transportation projects identified_ in this chapter. Project delivery includes preparation of environmental and engineering documents, right-of-way acquisition, construction, project support, and fund administration. All interest orotherearnings of the trustfund shall be credited to the trust fund. Sec. 3-18.12 Appeal process. An applicant who disputes the amou-nt of impact fee may file a written notice of appeal with the City Manager or their designee. Within fifteen (15) days of the appeal, the City Manager or their designee shall provide written notification of hislher decision. If unsatisfied with the decision of the City Manager or their designee, the applicant may resubmit a written appeal to the City Council. Thereafter, the City Council' shall render its decision by a majority vote of those members present within sixty (60) days of the filing of the appeal. Sec. 3-18.13 Annual fee and program review. (a) The City Council shall annually review, pursuant to Government Code Section 66006, and if necessary amend the Regional Transportation Impact Fee Program to ensure that it continues to be a fair and equitable method to distribute the costs of improvements necessary to accommodate traffic volumes generated by future growth. This review will coincide with the adoption of the five (5)-year Capital Improvement Program pursuant to Government Code section 66006(d). In adjusting the fee program, the following shall be considered: (1) Adding new transportation projects that meet program criteria; (2) - Deleting projects that have been completed; (3) Adjust the average per trip cost to reflect changes in construction costs; (4) Adjust the average per-trip cost to reflect changes in land values as indicated in an annual survey of local government costs for land subject to right-of-way acquisition; (5) Revise the average per-trip cost to reflect changes in the list of regional projects as that list may be amended from time to time by the RTIF Policy Board. - 7

(b) Unless otherwise amended by the City Council, the fees listed in Section 3 18.06(d) of this chapter shall be adjusted on July 1 of each year based upon the Engineering Construction Cost Index as published by the Engineering News Record. (c) Changes in the regional transportation impact fee resulting from the annual review will have no effect on fees already paid into the trust fund. (d) At the time of the annual review, the City Council shall make findings for any fees remaining unexpended and uncommitted in the trust fund for five (5) or more years after deposit demonstrating a reasonable relationship between the fee and the purpose for which it was charged. Unless a need for such fees can be demonstrated, the unexpended or uncommitted portion including interest that has accrued, shall be. refunded to the current record owner of the development project on a prorated basis. Sec. 3-18.14 Severability. If anyone or more of the t~rms, provisions, or sections of this chapter shall to any extent be adjudged invalid, unenforceable, or void, by a court of competent jurisdiction, each and all of the remaining terms, provisions, and sections of this chapter shall not be affected thereby and shall be valid and enforceable. Sec. 3-18.15 Effective date. The ordinance codified in this chapter shall go into effect and be in full force and operation thirty (30) days after its final passage and adoption. The City Clerk shall certify to the adoption of the ordinance codified in this chapter and cause the same to be posted and published once within fifteen (15) days after passage and adoption as may be required by law; or, in the altemative, the City Clerk may cause to be published a summary of this chapter and a certified copy of the text of this chapter shall be posted in the Office of the City Clerk five (5) days prior to the date of adoption of the ordinanc~ codified in this chapter; and, within fifteen (15) days after adoption, the City Clerk shall cause to be published, the aforementioned summary and shall post a certified copy of this chapter, together with the vote for and against the same, in the Office of the City Clerk. THE FOREGOING ORDINANCE was introduced at a regular meeting of the Los Banos City Council on the 20 th day of August 2008, and was adopted at a regular meeting of the Los Banos City Council on the 3 rd day of September 2008 by the following vote: AYES: NOES: ABSENT: Council Members Brooks, Faria, Sousa, VillaIta, Mayor Jones None None ATTEST: ~~'I.~ Lucille L. Mallonee, City Clerk 8

Exhibit A - List of Projects on the Regional System The following transportation projects are those which when completed will together mitigate the traffic impacts on the regional transportation system of future growth to the year 2030 throughout Merced County. The City Council, upon adoption of this chapter, shall amend the Circulation Element of the General Plan to include these regional projects and any amendments. The Regional Transportation Impact Fee shall be solely for funding environmental clearance analysis and reports, design engineering, right-of-way acquisition, construction, fund management, project support, and other necessary expenses for the delivery of Regional System projects and any other purpose consistent with this chapter. The Fee may not be used for system maintenance. RTIF PROJECT LIST A Bellevue Rd - connection to 99 - from new interchanae to Atwater B Mission Ave. - improvement - from 59 to 99 (not adding lanes) C SR 59 "Atwater-Merced Highway" realign from SR 99 to Bellevue Road w/ new SR 99 interchanae D SR 59 - widen to 4 lanes - from Mission Ave. to Childs Ave. E SR 59 - widen to 4 lanes - from 152 to Mission Ave. F SR 140 "Bradley Overhead" - widen to 4/5 lanes - from Parsons to Santa Fe Ave. G SR 140 - widen to 4/5 lanes - from Santa Fe Ave. to Campus Parkway H SR 140/33 "Gustine Truck Route" - bypass Gustine I SR 152 "Los Banos Bypass". J SR"165 - widen to 4/5 lanes - from Hilmar to Stanislaus County or alternate project to reduce traffic on SR 165 through Hilmar K Dos Palos road improvements L Winton Parkway interchange improvements and widening M Campus Parkway from SR99 to Yosemite Ave. 9

RESOLUTION NO. 5072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS BANOS AUTHORIZING ADOPTION OF THE PHASE I FUNDING PLAN FOR THE LOS BANOS BYPASS PROJECT WITH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION AND MERCED COUNTY ASSOCIATION OF GOVERNMENTS WHEREAS, the State of California Department of Transportation (Caltrans), Merced County Association of Governments (MCAG), and City of Los Banos support the Funding Plan for Phase I of the Los Banos Bypass project; and WHEREAS, Caltrans District 10 Management supports contributing $36 million in State and Federal funds for the construction of the first phase of the Los Banos Bypass project; and WHEREAS, the City of Los Banos has committed over $9.6 million to acquire R/W parcels for Wastewater Treatment Plant Expansion and Phase I construction of the Highway 152 Bypass; and WHEREAS, the City of Los Banos agrees to provide, through MCAG, right-ofway services to acquire all 59 parcels for this project, using RTIF and other funds; and WHEREAS, the City of Los Banos agrees to provide environmental clearance for the excavated fill to be used for the Los Banos Bypass project; and WHEREAS, excavated fill for the Los Banos Bypass will be taken within the footprint of the Wastewater Treatment Plant expansion area. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby approve adoption of the Phase I Funding Plan for the Los Banos Bypass Project with the State of California Department of Transportation and Merced County Association of Governments. The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 17th day of September 2008, by Council Member Sousa who moved its adoption, which motion was duly seconded by Council Member Faria and the Resolution adopted by the following vote: AYES: NOES: ABSENT: Council Members Brooks, Faria, Sousa, Villalta, Mayor Jones None None ATTEST: i~'.~~. Lucille L. Mallonee, City Clerk

ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS BANOS AMENDING CHAPTER 18 OF TITLE 3 OF THE LOS BANOS MUNICIPAL CODE RELATING TO THE REGIONAL TRANSPORTATION IMPACT FEE (RTIF) The City Council of the City of Los Banos does ordain as follows: WHEREAS, the City Council in May 2005, adopted a Resolution approving the initial RTIF Study prepared by Merced County Association of Governments (MCAG); and WHEREAS, in accordance with State Law requiring annual RTIF review, the MCAG Governing Board at their January 17, 2008 meeting, completed its annual review of the RTIF program with the approval of an updated RTIF Study; and WHEREAS, the City Council in August 2008, adopted a Resolution approving the implementation of the updated RTIF Study; and WHEREAS, provisions in the Municipal Code relating to the RTIF need to be updated. Section 1. Chapter 18 of Title 3 of the City of Los Banos Municipal Code is hereby revised to read as follows: Title 3 FINANCE Chapter 18 Sections: Sec. 3-18.01 Sec. 3-18.02 Sec. 3-18.03 Sec. 3-18.04 Sec. 3-18.05 Sec. 3-18.06 Sec. 3-18.07 Sec. 3-18.08 Sec. 3-18.09 Sec. 3-18.10 Sec. 3-18.11 Sec. 3-18.12 REGIONAL TRANSPORTATION IMPACT FEE (RTIF) Intent. Purpose. Specific Findings. Definitions Applicability. Establishment of regional transportation impact fee. Findings. Exemptions. Credits. Collection of Fee. Regional transportation impact fee fund. Appeal process. 1

Sec. 3-18.13 Annual fee and program review. Sec. 3-18.14 Severability. Sec. 3-18.15 Effective Date. Sec. 3-18.01 Intent. (a) The City Council of the City of Los Banos finds that future development within the County of Merced to the year 2030 will result in traffic volumes in excess of capacity on the regional system of arterials, highways, and freeways as designated in this Ordinance. (b) The City Council of the City of Los Banos finds that failure to expand the capacity of the existing circulation system will result in new development causing unacceptable levels congestion on the arterials, highways, and freeways of the regional system. (c) The City Council also finds and declares that, in the absence of this chapter imposing a fair-share traffic fee upon new development, existing and future sources of revenue are inadequate to fund substantial portions of the regional transportation system improvements needed to avoid unacceptable levels of congestion and related adverse impacts caused by new development. Sec. 3-18.02 Purpose. (a) The City Council of the City of Los Banos finds and determines that adoption of this regional transportation impact fee ordinance will raise additional revenues needed to construct improvements to accommodate traffic that will be generated by new development within the County and City of Los Banos. (b) The City Council also finds and declares that the Regional Transportation Impact Fee Study (MCAG, January 18, 2008) has determined the extent to which the new development of land will generate traffic volumes impacting the roadway system and that this chapter establishes a fair and equitable method for distributing unfunded costs of transportation improvements necessary to accommodate traffic volumes generated by such development. Sec. 3-18.03 Specific Findings. The need for regional transportation improvements and for the regional transportation impact fee established by the ordinance codified in this chapter are based on the finding of the Regional Transportation Impact Fee Study prepared by the Merced County Association of Governments whose Governing Board is composed of City Council members and County Supervisors from the County's six (6) cities and the County Board of Supervisors. The study has established that growth to the year 2030 will affect the entire regional transportation system and therefore that the area of impact for future development is appropriately the entire County of Merced. The Study made the following additional findings: (a) Population and employment within the County of Merced is anticipated to increase by ninety-eight (98%) percent and eighty-two (82%) percent, 2