City Council/Successor Agency/Public Finance Authority

AGENDA ITEM NO. 5. – A. CITY OF AVENAL “Pistachio Capital of the World®” CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING THURSDAY, JUNE 24, 2021; 5:15 P.M. AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA VIA ZOOM AVIDEO/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 5:18 p.m. PELAGE OF ALLEGIANCE: by Mayor Preciado. ROLL CALL: Councilman Gravelle, Councilman Hernandez, Councilman Verdugo, Mayor Pro Tem Ramirez, Mayor Preciado. ABSENT: None. STAFF: Lopez, Ortiz, Bermudez, Davis, Yang, LEGAL COUNSEL: 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 & UNSCHEDULES APPERANCES: Manuel Cunha, League President Nisei Farmers mentioned that he is before the City Council to ask for their support with two (2) letters on the Farm Workforce Modernization Act of 2021 that is before the United State House of Representatives. However, the legislation in its current form leaves out a large segment of our undocumented agricultural workforce, those people that work in packing houses and processing plants. Packing houses and processing plants are a vital economic sector in our community. They ensure that the agricultural industry runs smoothly and offer good-paying jobs to our residents. These workers labor long hours sorting, packing, and processing the industry's commodities, especially in the peak season. It is unfair that they are not included in the legislation's current definition of agricultural labor or services. They should not have to resign to benefit from the opportunity to earn citizenship when their contributions are essential to the agricultural industry. Dreamers must not be forgotten in this push to legalize the agricultural workforce. He thanks the City Council for their consideration and support. Julie Moran, ACE Hardware Store owner mentioned the following: 1) City Employees visited her store needed some financial information will this information stay confidential, she did not receive notice that the business license fees going up 400-precent and feels it’s unfair. Antony Lopez, City Manager stated that fees and charges were approved on June 30th City Council meeting. These fees have not been updated since 1992 and it was time for the update. Clarified that the fees mentioned by Ms. Moran were actually only a difference of 140-150%. City Council went into Closed Session at 5:25 p.m. CLOSED SESSION: (City/Successor Agency): It is the intent of this governing body to meet in closed session to review its position and to instruct its designated representatives: Any person may directly address the Council/Agency at this time on items of interest regarding Closed Session. A. Pending Litigation (Government Code § 54956.9) (d)(1)). It is the intention of this governing body to meet in closed session concerning: 1. Parties, case/claim no: Alba Luz Calderón De Cerda et al. v. Corteva Inc. et al. (Kings County Superior Court, Case No. 20C-0250). 2. Parties, case/claim no: Center for Biological Diversity et al. v. United States Bureau of Reclamation, Joint Meeting City Council/Successor Agency July 8, 2021 Page 2 of 9 et al. (United States District Court, Case No. 1:20 -cv-007606-DAD-EPG). B. Pending Litigation (Government Code § 54956.9). It is the intention of this governing body to meet in closed session concerning: Conference with legal counsel – ANTICIPATED LITIGATION (Government Code § 54956.9(d)). Significant exposure to litigation (Government Code § 54956.9(d)(2)). Number of potential cases is: 1. C. Conference with Real Property Negotiator(s) (Government Code § 54956.8). It is the intent of this governing body to meet in Closed Session to confer with its real property negotiator(s) concerning the purchase, sale, exchange, or lease of real property by or for this agency as follows: 1. Property Description: APN: 040-301-017; 040-301-026; & 040-301-028 Negotiator(s): City Manager / City Attorney. Party with whom negotiating: Dollar General. Instructions to negotiator concerning: Terms. 2. Property Description: APN: 038-290-028 Negotiator(s): City Manager/City Attorney Party with whom negotiating Avenal Sand Drags Association, Inc. Instructions to negotiator concerning: Terms. D. Conference with Labor Negotiator(s) (Government Code § 54957.6). It is the intent of this It is the intent of this governing body to meet in Closed Session to review its position and to instruct its designated representatives: Designated representatives: City Employees Bargaining Units 1-5 / APOA. Mayor Preciado re-opened the City Council meeting at 6:28 p.m. with nothing to report out of Closed Session but will continue Closed Session after the regular meeting. Mayor Preciado made a motion to add an urgent item to the agenda as New Business 10.-B. Letter of Support for Farm labors, seconded by Mayor Pro Tem Ramirez and carried. Roll Call Vote: AYES: Preciado, Ramírez, Gravelle, Hernández, Verdugo. NOES: None. ABSENT: None. ABSTAIN: None. Moses Diaz, City Attorney mentioned that this item came to the attention of the City Council after the Agenda was posted and some events happening in Washington which will occur before the next City Council meeting justify the item being added. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULES APPERANCES: Kao Nou Yang, Community & Economic Development Director mentioned as an unscheduled appearance would like to introduce John Karlie, he is the certified Building Official with Wildan our contractor that does the building inspections and have expanded serviced regarding building and inspection services. Wildan will be our Building Division for now and have John on the line. Mr. Karlie is currently doing inspections Monday, Wednesday and Friday and the Council might see Mr. Karlie around town. John Karlie, Wildan introduced himself as Building Official/Certified Building Inspector/Plan examiner and whatever you need. The City Council welcomed Mr. Karlie. Veronica Aguirre wanted to know when this became an item for Closed Session is this item public that Center for Biological Diversity et al. v. United States Bureau of Reclamation. City Attorney Diaz stated that this is public and filed at US District Court Eastern District of California out of the Fresno Divison. The records are avialable online at pacer.gov and you need to sign-up. CONSENT CALENDAR: All items listed under the consent calendar are routine and enacted by one motion: (Action). A. Approval of City of Avenal/Successor Agency’s Minutes for June 23, 2021, June 24, 2021; June 29, 2021; June 30, Joint Meeting City Council/Successor Agency July 8, 2021 Page 3 of 9 2021. A motion was made by Councilman/Successor Agency Member Verdugo approve Consent Calendar, seconded by Councilman Hernandez, and carried. Roll Call Vote: AYES: Verdugo, Hernández, Gravelle, Ramírez, Preciado. NOES: None. ABSENT: None. ABSTAIN: None. MAYOR & COUNCIL MEMBER/ SUCCESSOR AGENCY/ ITEMS FOR CONSIDERATION: A. Consider Resolutions of the City Council, the Board of the Avenal Public Financing Authority, and the Board of the Successor Agency of the Redevelopment Agency of the City of Avenal to Refund the Authority’s 2005 Refunding Revenue Bonds through the issuance of the Authority’s Refunding Revenue Bonds, Series 2021 (the “2021 Bonds”): Mr. Lopez reported that the Financial Advisor Kenneth L. Dieker, Del Rio Advisor will be presenting this item next for the Bond process power point presentation and staff report. Mr. Dieker reported that the Avenal Public Financing Authority (the “Authority”) issued $9,660,000 2005 Refunding Revenue Bonds (the “2005 Bonds”), which are currently outstanding in the amount of $5,195,000 ($4,785,000 after September 1, 2021). Debt service on the 2005 bonds is secured and payable in part from payments made by the City under an Amended and Restated Installment Sale Agreement, dated as of September 1, 2005 (the “2005 Sale Agreement”), by and between the Authority and the City; and an Amended and Restated Loan Agreement, dated as of September 1, 2005 (the “2005 Loan Agreement”), by and between the Successor Agency and the Authority. A portion of the 2005 Bonds is paid from the Water System to the Authority under the 2005 Sale Agreement and the remaining portion is paid from the Successor Agency to the Authority from the approved Recognized Obligation Payment Schedule (the “ROPS”) under the 2005 Loan Agreement. He continues that since March of 2020 when the pandemic lockdown began, the Federal Reserve has taken significant actions to stimulate the economy by keeping short-term interest rates near 0%. The US Treasury market and the municipal market followed suit with significant reductions in long-term rates to near “all-time” lows in the summer of 2020. Since last summer, the US Treasury rates on both the 10-year and the 30-year treasuries have risen about 100 basis points. However, municipal bonds as an asset class remain very attractive with a great deal of money flowing into tax-exempt mutual funds. The municipal market has not been able to meet the increased demand from these inflows with the supply and demand imbalance keeping municipal market interest rates near “all-time” lows. It is possible in this market to refund (refinance) the 2005 Bonds for significant savings through the issuance of Refunding Revenue Bonds, Series 2021 (the “2021 Bonds”). The table below illustrates the estimated savings by refunding the 2005 Bonds: Estimated Refunding Results (1) Overall Installment Sale Loan Agreement (Water Fund) (Successor Agency) Amount Outstanding $4,785,000 $3,305,000 $1,480,000 Estimated Refunding Amount $4,535,000 $3,220,000 $1,315,000 Total Savings $713,094 $469,063 $244,031 Average Annual Savings $80,077 (2) $31,271 $48,806 Net Present Value Savings $510,317 $416,381 $93,936 Net Present Value Savings Percentage 10.67% 12.60% 6.35% Final Maturity (Refunding) 9/1/2036 9/1/2036 9/1/2026 Final Maturity (Prior Bonds) 9/1/2036 9/1/2036 9/1/2026 (1) Based on Interest Rates from June 22, 2021 (2) From 9/1/2022 to 9/1/2026 and $31,271 Thereafter after the Loan Agreement Matures on 9/1/2026 The Resolutions tonight just begin the financing process. If approved tonight, the next step will be to provide the Successor Agency component of the transaction to the Kings County Oversight Board for approval. If approved at the Oversight Board, Joint Meeting City Council/Successor Agency July 8, 2021 Page 4 of 9 the Successor Agency package will be forwarded to the California Department of Financing (“DoF”). DoF has five (5) days to reply that they will review the refunding and sixty (60) days to reply with formal approval / denial. The transaction is currently scheduled to be presented to the Oversight Board in July which means we could receive DoF approval as late as October. While DoF is reviewing the transaction, the financing team will begin preparation of the Official Statement which is the primary document used by the underwriter to market the bonds to potential investors. It is expected that the City Council and the Board of the Public Financing Authority could review and approve this document at the October 14 meeting. It is expected that the 2021 Bonds could be sold on or around November 10 and close on November 24. Of course, this schedule is very dependent on how quickly we can get before the Oversight Board and how long DoF takes to review the transaction. Financing Team The Authority previously approved the following team that will work as the Authority’s “Financing Team”:  Underwriter (280 Securities LLC/InspereX LLC): The Underwriter is an investment banking firm that assists in structuring the bonds and markets / sells the bonds to potential investors. The underwriter is also prepared to purchase or underwrite any unsold balances on the date of sale.  Bond Counsel (Procopio): Bond Counsel drafts the bond documents and ensures that all legal requirements critical to the validity of the bonds are satisfied, issues the required opinions, including as to the tax exemption of the bonds.  Disclosure Counsel (Procopio): Disclosure Counsel prepares the official statement and sets up the continuing disclosure undertaking. The official statement is the primary marketing document used by the Underwriter to market the bonds to potential investors.  Municipal Advisor (Del Rio Advisors, LLC): The Municipal Advisor assists the Authority in the solicitation of fee proposals and makes recommendations on the selection of Underwriter, Bond, and Disclosure Counsel. The Municipal Advisor will make recommendations as to the structure, timing, and terms of the bonds, reviews all fees and expenses, coordinates the financing team, assists in verifying coupons and yields on the date of sale and reviews and comments on all documents.  Trustee (U.S. Bank National Association): The Trustee manages all funds related to bonds and coordinates the payment of debt service bondholders. The role of the Trustee is governed by the terms and conditions of the Indenture of Trust. Estimated Costs of Issuance: Below is a table of the estimated costs of issuance associated with the transaction. These costs are entirely contingent meaning nothing is due unless the transaction is successfully sold and closed. Budgeted Party Amount_ Bond Counsel $40,000.00 Disclosure Counsel $30,000.00 Municipal Advisor $22,500.00 Underwriter’s Counsel $7,500.00 Trustee / Escrow Agent $4,000.00 Trustee Counsel $2,500.00 Verification Report $2,500.00 Printing $5,000.00 Miscellaneous / Contingency $5,095.03 Total Estimated Costs $119,095.03 In addition to the estimated fixed costs above, the Underwriter is compensated as a percentage of the par amount of bonds to be issued. The Underwriter has agreed to a “not-to-exceed” underwriter’s discount of 0.75%. This amount is currently estimated at $34,012.50 based on an estimated par amount of $4,535,000. Documents for Consideration Indenture of Trust: A document by and between the Avenal Public Financing Authority and U.S. National Association as Trustee. The indenture governs all terms and conditions of the 2021 Bonds and the role and responsibilities of the Trustee including but not limited to managing all funds related to the 2021 Bonds, the payment of debt service to bondholders, redemption of the 2021 Bonds and events of default and related remedies. Conveyance Agreement: A document by and between the City of Avenal and the Avenal Public Financing Authority whereby the City will convey the City’s Water Enterprise to the Authority. Immediately upon the conveyance, the Authority Joint Meeting City Council/Successor Agency July 8, 2021 Page 5 of 9 will sell the City’s Water Enterprise back to the City under the Second Amended and Restated Installment Sale Agreement described in the next paragraph. Second Amended and Restated Installment Sale Agreement: A document by and between the Avenal Public Financing Authority and the City of Avenal in which the City purchases the Water Enterprise back from the Authority and makes installment payments secured by pledges of certain amounts received as collections of water rates and charges net of operations maintenance expenses from the City’s Water Enterprise Fund (the “Net Revenues”). Second Amended and Restated Loan Agreement: A document by and between the Avenal Public Financing Authority and the Successor Agency to the Redevelopment Agency of the City of Avenal the Authority whereby the Agency desires that the Authority fund a loan (“Series 2021 Loan”) to the Agency for the purpose of refunding the outstanding obligations of the Agency under the Series 2005 Loan Agreement. Escrow Agreement: A document between the Avenal Public Financing Authority and U.S. Bank National Association as Trustee. The document governs the terms and conditions by which the Authority provides the funds to completely refund and retire the 2005 Bonds. Mr. Dieker recommendation is to accept staff’s recommendation approving City Council Resolution, approving Avenal PFA Resolution, and approving the Resolution of the Successor Agency Board. Also, fiscal impact based on market interest rates of June 22, 2021, the estimated annual savings to the City’s Water Enterprise Fund is approximately $31,271 per year from 2022 to 2036. The estimated annual savings to the Successor Agency is approximately $48,806 per year from 2022 to 2026. In addition, the net present value savings percentage is estimated at 10.67% exceeding the normal guideline for savings needing to exceed 3-5% to make a refunding economical. In addition, the fees and expenses of the Financing Team are fully contingent upon the successful closing of the transaction and all fees and expenses are included in the numbers presented. ATTACHMENTS: (1) Good Faith Estimates (2) Avenal City Council Resolution (3) Avenal PFA Resolution (4) Avenal Resolution of the Successor Agency Board (5) Indenture of Trust (6) Conveyance Agreement (7) Second Amended and Restated Installment Sale Agreement (8) Second Amended and Restated Loan Agreement (9) Escrow Agreement After a brief discussion, the following actions were taken: RESOLUTION NO. 2021-36: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL APPROVING THE REFUNDING OF AN INSTALLMENT SALE OBLIGATION OF THE CITY OF AVENAL INCURRED TO FINANCE AND REFINANCE PUBLIC IMPROVEMENTS OF THE CITY INCLUDING ITS WATERWORKS SYSTEM AND THE REFUNDING OF A LOAN OBLIGATION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AVENAL INCURRED TO FINANCE AND REFINANCE CERTAIN PUBLIC IMPROVEMENTS AND FACILITIES PREVIOUSLY DETERMINED TO BE OF BENEFIT TO THE AVENAL REDEVELOPMENT PROJECT AREA, EACH SUCH REFUNDING TO BE EFFECTED THROUGH THE REFUNDING, DEFEASANCE AND REDEMPTION OF OUTSTANDING BONDS OF THE AVENAL PUBLIC FINANCING AUTHORITY FROM AVAILABLE FUNDS INCLUDING PROCEEDS OF THE ISSUANCE AND SALE OF THE AUTHORITY’S REFUNDING REVENUE BONDS, SERIES 2021, AND APPROVING, AUTHORIZING AND DIRECTING THE EXECUTION AND DELIVERY OF AGREEMENTS AND OTHER ACTIONS RELATED THERETO THE CITY OF AVENAL. A motion was made by Councilman Gravelle, seconded by Councilman Verdugo, and carried. RESOLUTION NO. 2021-05: RESOLUTION OF THE AVENAL PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF NOT TO EXCEED $5,525,000 AGGREGATE PRINCIPAL AMOUNT OF AVENAL PUBLIC FINANCING AUTHORITY REFUNDING REVENUE BONDS, SERIES 2021, FOR THE REFINANCING OF CERTAIN PUBLIC IMPROVEMENTS AND FACILITIES, AND APPROVING AGREEMENTS IN CONNECTION WITH THE ISSUANCE, SALE AND DELIVERY OF SAID BONDS, AND DIRECTING THE EXECUTION AND DELIVERY OF SAID AGREEMENTS AND OTHER ACTIONS RELATED THERETO AVENAL PUBLIC FINANCING AUTHORITY. A motion was made by Councilman Gravelle, seconded by Councilman Verdugo, and carried. RESOLUTION NO. 2021-04 (SA): RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ACTING AS THE GOVERNING BOARD OF THE SUCCESSOR AGENCYTO THE REDEVELOPMENT AGENCY OF THE CITY OF AVENAL APPROVING THE AMENDMENT OF AN ENFORCEABLE OBLIGATION OF THE AGENCY PURSUANT TO THE PROVISIONS OF SECTION 34177.5 OF THE HEALTH AND SAFETY CODE IN CONNECTION WITH THE ISSUANCE, SALE Joint Meeting City Council/Successor Agency July 8, 2021 Page 6 of 9 AND DELIVERY BY THE AVENAL PUBLIC FINANCING AUTHORITY OF ITS NOT TO EXCEED $5,525,000 AGGREGATE PRINCIPAL AMOUNT OF AVENAL PUBLIC FINANCING AUTHORITY REFUNDING REVENUE BONDS, SERIES2021, FOR THE REFINANCING OF CERTAIN PUBLIC IMPROVEMENTS AND FACILITIES, AND APPROVING AGREEMENTS IN CONNECTION WITH THE ISSUANCE, SALE AND DELIVERY OF SAID BONDS, AND DIRECTING THE EXECUTION AND DELIVERY OF SAID AGREEMENTS AND OTHER ACTIONS RELATED THERETO SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AVENAL. A motion was made by Councilman Gravelle, seconded by Councilman Verdugo, and carried. Roll Call Vote: AYES: Gravelle, Verdugo, Hernandez, Ramirez, Preciado. NOES: None. ABSENT: None. ABSTAIN: None. ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS: A. Activity Reports: 1) Public Works/Building/Code Enforcement/Animal Control Departments Activity Report: Rob Williams, Public Works Director. Scott Davis, Public Works Supervisor, reported on the following: 1) Building Department; 2) Code Enforcement; 3) Park & Landscaping; 4) Streets; 5) Water Distribution; 6) Wastewater Collection; and 7) Vehicle, Equipment, & Building Maintenance. 2) Avenal Theater & Event Center Coordinator Activity Report: Humberto Bermudez, Avenal Theater & Event Coordinator/IT Manager. Humberto Bermudez, Avenal Theater & Event Coordinator/IT Manager reported the following: 1) contacted vendors for server units will give us the flexibility to build the server tailored specific to our needs. Staff has reached out to Dell and HP for complete units closely matching the overall requirements we specified for the server. Detailing a 16-core processor, 64GB of Error Correcting Code Memory, a total of 20TB of redundant storage, and an upgraded Network Interface Card for faster internal file transfers. Staff works with RSUSD to explore options with expanding our internet connection to the Public Works Yard and any other sites that may require a more stable connection. The Recreation Center currently uses RSUSD-provided internet and has proven to be the most reliable solution; 2) investigates revamping our current phone system to allow for easier call forwarding, directing, and other features that AT&T could not provide; 3) Facility maintenance: regarding the neon lights, we have received two LED swap options from Yesco, a static color set which limits our colors to standard primary colors and magenta and a programmable color changing option. Final quotes are pending, working with Swank Motion Pictures to renew the Avenal Theater’s Film Licensing contract, currently discussing paid and free film licensing options; and 4) Events: -Annual Fireworks Celebration, The Avenal Theater supplied and prepared the AV equipment for the celebratory slideshow prepared by Community Activities. -Rotary Food Distributions: June 8th Staff opened the Avenal Theater to the public as a cooling center between June 17th- 20th, 27th, and 28th. Staff continues to assist with the Avenal Rotary Club with their monthly food distributions outside the Veteran’s Hall. -Drive Thru Vaccination Clinic City Staff hosted a Drive Thru Vaccination Clinic on June 23rd at the Veterans Hall parking lot from 5PM-8PM for accessible pet licenses and vaccination. 3) Avenal Police Department Activity Report: Rusty Stivers, Chief of Police Rusty Stivers, Chief of Police reported the following: 1) officers responded to a call in the 800 block East San Joaquin do 2 an intoxicated person after residents trying to fight others. Officers arrived as the female was trying to fight. After speaking with her officers attempted to place her under arrest and the fight was on. She spit on the officer at bit one hard enough which caused the Officer to be off work the next day her the ER doctor charges are filed with Kings County district attorney's office; 2) Officers are investigating a high value check fraud at a convenience store. Officers have teamed up with the Fresno Police Department and a farming operation to determine the identity of the suspects; 3) Officers responded to an assault in progress after that the female had struck a male in the head with a frying pan, she was arrested for a variety of felony charges; 4) Officers investigate a sexual assault between two children; 5) Officers attempted to conduct a traffic stop in the city but the suspect did not yield. During the short pursuit the suspect vehicle collided with a tree stump which protected his vehicle from colliding with a brick wall and apartment the suspect was medically cleared and then booked in the Kings County jail for DUI and pursuit charges; 6) Officers assisted Code Enforcement during an investigation which led to discovery a of a very large commercial marijuana grow in a backyard nearly 1000 pounds of marijuana plants were seized and destroyed;7) Governor Newsom approved our request for a $50,000 reward for information leading to the arrest and conviction of a persons responsible for the 2015 murder of Santo Cabrera and Avenal resident; and, 8) Administrative Projects: Maria has been working with our records management system vendor, Spillman Technologies, on implementation of National Incident Based Reporting System (NIBS) which we are transitioning NIBS is a deeper dive into current Uniform Crime Report statistics that are reported to the FBI on a monthly basis. The following link is being provided for your information http://www.fbigov/services/cjis/nibs; 9) Also, working with the California Department of justice on the racial identity Profiling Act (RIPA) Stop Data program which will be in effect beginning January 2022. Most law enforcement agencies in the valley are in the last wave to meet Joint Meeting City Council/Successor Agency July 8, 2021 Page 7 of 9 the mandatory reporting beginning in the January 2022 for a January 2023 report. Avenal PD has chosen to utilize the DOJ portal to upload the information rather than use a third-party vendor to report to DOJ. Community/Event/Outreach: working on a re-branding and marketing our community response team. All supervisory personnel completed the National Center of missing and exploited children supervisory course. B. Special Presentations/Reports: 1. None. PUBLIC HEARING(s): A. None. OLD BUSINESS: A. Consider Extending Local Emergency Declared on March 24, 2020: Mr. Lopez reported that the Local Emergency continues to exist or threat 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: New variants of COVID-19 are posing a threat to public safety and thus staff remains on alert to respond to new developments. Staff is recommending 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 wouldbe scheduled. A motion was made by Councilman Verdugo to approve as recommended, seconded Councilman Gravelle and carried. Roll Call Vote: AYES: Verdugo, Gravelle, Hernandez, Ramirez, Preciado. NOES: None. ABSENT: None. ABSTAIN: None. B. Consider Extending Local Emergency Declared on May 27, 2021: Mr. Lopez reported that on May 27, 2021, the Avenal City Council adopted Resolution No. 2021-23 declaring a Local Emergency due to the existence or threatened existence of a local emergency: Severe Water Shortage. 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. Currently, Staff is working with representatives of USBR to evaluate options on acquiring Public Health and Safety Water from USBR – however due to the severity of this year’s drought, nothing is certain. Staff is recommending 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 Councilman Gravelle to approve as recommended, seconded Councilman Hernandez, and carried. Roll Call Vote: AYES: Gravelle, Hernández, Verdugo, Ramirez, Preciado. NOES: None. ABSENT: None. ABSTAIN: None. NEW BUSINESS: A. Consider Approval to Purchase Server Equipment for City Hall using American Rescue Plan Act Funds and Bring Networking Needs In-House: Joint Meeting City Council/Successor Agency July 8, 2021 Page 8 of 9 Mr. Lopez reports to streamline and improve the effectiveness staff’s time with the use of technology, staff sees it pertinent to bring the City’s network and server needs in-house, as opposed to utilizing Kings County IT for a monthly fee. City Staff can build a common server house at City Hall that will provide faster access to documents and a larger storage capacity without fear of ballooning costs for utilizing more data. Mr. Bermudez, current Theater Manager, has experience building computers for the city and is ready to build a server next to interconnect all current computers. Once a server has been established, staff will return to Council with further technological upgrades, such as laptops and software to further improve communication and collaboration between departments and staff. Further, Staff is working with Reef-Sunset Unified School District IT Staff to provide County Office of Education internet to City Facilities, which would require the purchase of networking equipment as well but would provide savings by eliminating the need for a monthly internet subscription from AT&T or Spectrum. Mayor Pro Tem Ramirez would like more information regarding American Rescue Plan Act Funds itemized projects to see where the money will be used. He would like to table this time for the next City Council meeting. After a lengthy discussion, the following action was taken. A motion was made by Mayor Pro Tem Ramirez to table item for more information regarding American Rescue Plan Act Funds itemized projects, seconded by Councilmember Gravelle and caried. Roll Call Vote: AYES: Ramirez, Gravelle, Verdugo, Hernandez, Preciado. NOES: None. ABSENT: None. ABSTAIN: None. B. Consider Approving Received Letters of Support for Farm Labors: Mr. Lopez mentioned that Manuel Cunha came during Public Time to ask the City Council for their support by signing two letters of support sending them to Senator Dianne Feinstein and Senator Alex Padilla for the movement that is happening for the Farm Workforce Modernization Act of 2021 and any new legislation include Dreamers. Mr. Cunha did give Staff sample letter to be used. This item is time sensitive and was added as an urgent item. Staff recommends authorizing the mayor to sign letters, put on city letter head and send to appropriate people. Mayor Pro Tem would like to add language regarding Avenal being a Farm Labor community. A motion was made by Councilman Gravelle to authorize the mayor to sign letters of support and send them to the appropriate people, seconded by Councilman Hernandez and caried. Roll Call Vote: AYES: Gravelle, Hernandez, Ramirez, Verdugo, Preciado. NOES: None. ABSENT: None. ABSTAIN: None. City Attorney Diaz recommended to add Letters of Support to future City Council Agenda to re-ratify action at the next City Council meeting. CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS: Councilman Gravelle mentioned that he will be working on the Skate Park filling in concrete and fixing the fence. Mayor Ramirez would like to have Study Session regarding American Rescue Plan Act Funds. Mr. Lopez reported that Staff is working on estimates that could fit the American Rescue Plan Act Funds and have a study session City Attorney Diaz mentioned because there are certain negotiations pending. He recommends any amount in the ARPA that is allowed for compensation not be discussed in detail during the study session and leave a place holder for said amount. Mr. Lopez would like to discuss potential general taxes. City Attorney Diaz mentioned that this can be put on the agenda and Joint Meeting City Council/Successor Agency July 8, 2021 Page 9 of 9 discussed general terms with different types of taxes because you have sale, business, and other taxes. Antony Lopez, City Manager City Council shared with Staff he handed out New Executive Orders from Governor Newsome going over Executive Order N-08-21 that legal Counsel has shared with Mr. Lopez. New Executive Order from Governor Newsome resending many Executive Orders by October. There one important Executive Order N-29-20 which was the one that allowed us to have these zoom meeting and councilmember to meet remotely. Once this goes into effect it would have to notice all public attendance, Teleconferences need to be accessible & agenda posted at locations to the public as per the Brown Act. This should not adversely affect us do to they have been meeting in person and will be allowing the public into meetings. Also, by the next meeting we will readjust and go back to the meeting room and see how that works out for us. If the Council agrees is still hosting meting via zoom. Mr. Lopez brother will be moving back to Avenal working at West Hills College. Mayor Preciado reported the following: 1) Thanked the City Staff for the hard work on Budget, 4th of July celebration; 2) Also, the community benefited from the Mexican Consulate – 200 residents helped and working on bring them back; 3) happy to see that the cooling center is being used. Please keep safe. City Council went into Closed Session at 8:10 p.m. Mayor Preciado re-opened the meeting at 9:47 p.m. nothing to report out of closed session. ADJOURNMENT: There being no further business the City Council meeting was adjourned at 9:47 p.m. Respectfully submitted, Maria Ortiz, City Clerk