City Council/Successor Agency/Public Finance Authority

AGENDA ITEM NO. 5. – A. CITY OF AVENAL “Pistachio Capital of the World®” CITY COUNCIL/SUCCESSOR AGENCY MEETING THURSDAY, JANUARY 11, 2020; 6:15 P.M. AVENAL THEATER & EVENT CENTER / 233 E. KINGS STREET, AVENAL, CA 93204 (Due to gathering limits and social distancing requirements, the City Council and limited City Staff will attend at this location.) VIA ZOOM VIDEO/WEB CONFERENCING: Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join. MINUTES CALL TO ORDER: at 6:15 p.m. ROLL CALL: Councilman Hernandez, Councilman Verdugo, Councilman Gravelle, Mayor Pro Tem Ramirez, Mayor Preciado. STAFF: Lopez, Bermudez, Santillan. LEGAL COUNCEL: Moses Diaz CITY CLERK: Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPERANCES: There were no public comments offered. OLD BUSINESS: A. Consider Extending Local Emergency Declared on March 24, 2020: Antony Lopez, City Manager reported that the Local Emergency continues to exist or threatened existence of a local emergency: COVID-19 pandemic. The declaration must be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists. Staff is recommending that the City Council consider the following action by motion: Approve and support the ongoing local emergency Resolution, and specifically, move to renew the emergency Resolution by thirty (30) days, unless a Councilmember or member of the public request that the Council convene to consider the ongoing emergency Resolution, at which time a special meeting would be scheduled. A motion was made by Councilmember Mayor Pro Tem Ramirez to approve as recommended seconded by Councilman Hernandez and carried. Roll Call Vote: AYES: Mayor Por Tem Ramirez, Councilman Hernandez, Councilman Gravelle, Councilman Verdugo, Mayor Preciado. NOES: None. ABSENT: None. ABSTAIN: None. B. Consider Suspending/Terminating the Local Emergency Declared on November 5, 2020; ending Phase III Water Conservation Rules and Adopting Phase II Water Conservation Rules. Joint Meeting City Council/Successor Agency January 11, 2021 Page 2 of 4 On November 5, 2020, the Avenal City Council adopted Resolution No. 2020-55 declaring a Local Emergency due to the existence or threatened existence of a local emergency: Severe Water Shortage. The Avenal City Council also elected to enact Phase III Water Conservation Rules to encourage and further enforce water conservation from the community. At each subsequent City Council meeting, the declaration is required to be reviewed to consider the following action: 1) reaffirm that a local emergency continues to exist; or, 2) make a finding that a local emergency no longer exists. On January 7, 2020, Staff received written notification from USBR that the City’s request for an additional 500 acre feet of water for the remainder of the 2020 water year (ending February 2021), is approved. Staff believes this additional allocation will be sufficient for the City’s water needs through the end of February 2021.With a guarantee of additional water allocation, Staff recommends that the declared Local Emergency due to severe water shortage can now be terminated. Additionally, Staff recommends also terminating Phase III Water Conservation Rules, and reintroducing Phase II Water Conservation Rules, allowing residents more flexibility to use water. Staff recommends to approve resolutions and after a brief, discussion the following action was taken. RESOLUTION 2020-01: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL SUSPENDING/ TERMINATING THE LOCAL EMERGENCY DECLARED ON NOVEMBER 5, 2020 DUE TO SEVERE WATER SHORTAGE. A motion was made by Councilmember Mayor Pro Tem Ramirez to approve as recommended seconded by Councilman Hernandez and carried. RESOLUTION 2020-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ADOPTING EMERGENCY ADOPTING EMERGENCY TIER Il WATER CONSERVATION MEASURES DUE ONGOING DROUGH CONDITIONS. A motion was made by Councilman Gravelle to approve as recommended seconded by Councilman Verdugo and carried. Roll Call Vote: AYES: Councilman Gravelle, Councilman Verdugo, Por Tem Ramirez, Councilman Hernandez, Mayor Preciado. NOES: None. ABSENT: None. ABSTAIN: None. NEW BUSINESS: A. Consider Authorizing the Mayor to Execute a Contract between the United States Bureau of Reclamation (USBR) and City of Avenal to Enter into a Perpetual Water Supply Contract (WIIN ACT): Mr. Lopez stated that the City of Avenal first entered a 40-year contract with USBR for Central Valley Project Water Supply on November 11, 1969, ending December 31, 2008 (USBR 14-06-200-4173A). Since 2009, the City has entered into a series of six Interim Renewal Agreements, IR-1 through IR-6. The sixth, two-year agreement terminates February 28, 2021, and a seventh is available to be executed as a contingency. The IRCs were necessary to execute until USBR could negotiate until a long-term contract with the City. A second long-term contract was delayed because USBR was unable to complete a successful Programmatic Environmental Impact Statement (PEIS) and further ecological concerns and hydrologic constraints. In 2016, the United States Congress provided an alternative approach through the WIIN Act (Water Infrastructure Improvements for the Nation). Mr. Lopez continues that this approach does not require environmental approval and provides for a contract into perpetuity (no expiration date). However, the WIIN Act requires prepayment of outstanding construction cost. The proposed long-term contract will provide water supply security for the City long into the future, as the contract has no termination date. The contract is also valuable because it demonstrates water supply stability to rating agencies and potential bond buyers, helping the City’s credit ratings. Finally, obtaining the long-term contract will alleviate the administrative need to enter into Interim Renewal Contracts every two years. To enter the new contract, the City Joint Meeting City Council/Successor Agency January 11, 2021 Page 3 of 4 must pay the remaining balance of “M&I Construction Cost” allocated to the City by USBR for FY 2020/2021 and FY 2021/2022. As of January 2021, the amount for FY 2020/2021 is $407,567, as shown in Exhibit C of the proposed contract. USBR has indicated that the amount for FY 2021/2022 is projected to be around $600,000. Staff recommends by Resolution, authorize the Mayor to execute a long-term contract to purchase water supply from the United States Department of the Interior, Bureau of Reclamation (USBR). RESOLUTION 2021-03: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL TO ENTER INTO A PERPETUAL WATER SUPPLY CONTRACT BETWEEN THE UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION AND THE CITY OF AVENAL PROVIDING WATER SERVICE TO THE CITY OF AVENAL. A motion was made by Councilman Gravelle to approve as recommended seconded by Councilman Hernandez and carried. Roll Call Vote: AYES: Councilman Gravelle, Councilman Hernandez, Mayor Pro Tem Ramir Mayor Preciado. NOES: None. ABSENT: None. ABSTAIN: None. B. Consider Interim Renewal Contract #7 between the United States Bureau of Reclamation (USBR) and City of Avenal for Providing Project Water Service:. Mr. Lopez stated that for over 12 years, the City has negotiated for new/updated water services contract with the US Bureau of Reclamation (USBR), entering into numerous "Interim Renewal Contract" (IRC). IRCs have provided water services to the City from January 1, 2009 through February 28, 2011 (IRC #1) and successive renewals since that time. The current interim contact expires February 28, 2021; therefore, an extension or seventh Interim Renewal Contract needs to be in place before that date due to the time needed to process signatures and documents at the Bureau level. The Bureau has drafted a three (3) page contract which includes the "Renewal and Revision of Contract No, 14-06-200-4619A-(IR6)". By approving the document, the interim contract would be extended through February 28, 2023. As noted, the document requires the Mayor's signature. Although a final contract has been negotiated and presented to Council through the WIIN (Water Infrastructure Improvements for the Nation) Act, USBR. Staff recommends that Council execute the present IRC agreement as a provision to the City’s continued supply of water services should any delays be presented enacting the WIIN Act. By Resolution, authorize the Mayor to sign Interim Renewal Contract #7 with USBR. After a brief, discussion the following action was taken. RESOLUTION 2021-04: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ENTERING INTO A REVISED INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES (BUREAU OF RECLAMATION) AND CITY OF AVENAL PROVIDING FOR PROJECT WATER SERVICE. A motion was made by Councilman Verdugo to approve as recommended seconded by Councilman Gravelle and carried. Roll Call Vote: AYES: Councilman Verdugo, Councilman Gravelle, Councilman Hernandez, Mayor Pro Tem Ramirez, Mayor Preciado. NOES: None. ABSENT: None. ABSTAIN: None. Joint Meeting City Council/Successor Agency January 11, 2021 Page 4 of 4 CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS: Antony Lopez, City Manager, reported the following: 1) the County is still offering free COVID testing at the Avenal High School parking lot Friday – 9:00 a.m. to 4:00 p.m. Staff is sharing the flyer. Also vaccinations are being offered to first responders; and 2) Melissa Whitten, Consultant reported the following: 1) she commended the City Council and Staff for history in the making with approving the WIIN (Water Infrastructure Improvements for the Nation) Act, USBR. Moses Diaz, City Attorney, reported the following: 1) New legislation pertaining to Covid-19 and new policy will need to be approved. Mr. Lopez mentioned that RMA did send language and policy they wanted Staff to adopt and there being reviewed. Mayor Preciado reported the following: 1) that the Governor announced that to vaccinate 2-million people; 2) the County would like to vaccinate our elderly 75-years old and up if anyone has family respond to the survey; and, 3) Water wells and water to continue working on it. ADJOURNMENT: There being no further business the City Council meeting was adjourned at 6:57 p.m. Respectfully submitted, Maria Ortiz, City Clerk