LOS Banos located at 203 n. santa rosa street, los banos, california [neighborhood stabilization...

LOS BanosAt the Crossroads oj California

www.losbanos.org

AGENDACITY COUNCIL MEETING

CITY HALL COUNCIL CHAMBERS520 J Street

Los Banos, California

APRIL 17, 2013

If you require special assistance to attend or participate in this meeting, please call theCily Clerk·s Office@ (209) 827-7000 al leasl 48 hours prior 10 Ihe meeting.

The City of Los Banos complies with the Americans with Disabilities Act (ADA) of 1990.• ******.********

Si requiere asistencia especial para Btender 0 participar en esta junta por favor /Jame a /a oficinsde /a Secretaria de la ciudad al (209) 827-7000 a 10 menos de 48 heras previas de lajunta.

La Cuidad de Los Banos cumple con /a Acta de Americanos con DeshabiHdad (ADA) de 1990.

Any writings or documents provided to a majority of the City Councilregarding any item on this agenda will be made available for public inspection at the meeting

and in the City Clerk's office located at City Hall, 520 J Street, Los Banos, Californiaduring normal business hours. In addition, such writings and documents may be posted

on the City's website at www.fosbanos.Oro.****************

Cualquier escritura a los documentos proporcionaron a una mayoria del Ayuntamiento respecto a cualquierarticulo en este orden del dia sera hecho disponible para fa

inspecci6n publica en la reuni6n y en la oficina de la Secretaria de la ciudad en City Hall, 520 J Street, Los Banos,California durante horas de oficina normales. Ademas, tales escrituras y los documentos

pueden ser anunciados en el website de la ciudad en WW\N.losbanos.oro.

OPEN HOUSE FOR NEW CITY MANAGER - STEVE CARRIGAN 6:00 PM

* * * * * * * * *

1. CALL TO ORDER 7:00 PM

2. PLEDGE OF ALLEGIANCE.

3. ROLL CALL: (City Council Members)

Faria _' Lewis __, Silveira_, Stonegrove _, Villalta _

4. CONSIDERATION OF APPROVAL OF AGENDA.

5. INTRODUCTION OF NEW CITY MANAGER - STEVE CARRIGAN.

Los Banos City Council Agenda - April 17, 2013 Page lof3

6. PUBLIC FORUM. (Members of the public may address the City Council Memberson any item of public interest that is within the jurisdiction of the City Council;includes agenda and non-agenda items. No action will be taken on non-agendaitems. Speakers are limited to a five (5) minute presentation. Detailed guidelinesare posted on the Council Chamber informational table.)

7. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. (Items on theConsent Agenda are considered to be routine and will be voted on in one motionunless removed from the Consent Agenda by a City Council Member.)

A. Check Register for #140650 - #140933 in the Amount of $809,540.15.

Recommendation: Approve the check register as submitted.

B. Third Quarter Investment Report for Fiscal Year 2012/2013.

Recommendation: Accept the report as submitted.

C. Minutes for the April 3, 2013 City Council Meeting.

Recommendation: Approve the minutes as submitted.

D. City Council Resolution No. 5479 - Authorizing Execution of Agreement toPurchase Tax-Defaulted Property Located at 1217 D Street in Los Banos.

Recommendation: Adopt the resolution as submitted

E. City Council Resolution No. 5480 - Authorizing Award of ConstructionContract for the Federal Safe Routes to School Project, SRTSL-5160 (020).

Recommendation: Adopt the resolution as submitted.

8. PUBLIC HEARING. (If you challenge the proposed action as described herein incourt, you may be limited to raising only those issues you or someone else raisedat the public hearing described herein or in written correspondence delivered to theCity at, or prior to, the public hearing.)

A. Public Hearing - To Receive Public Comment and Consideration of Revisionsto the Los Banos Zoning Ordinance Amending Title 9, Chapter 3, Section 93.201 and Adding Article 39 to the Los Banos Municipal Code Relating toCottage Food Operations.

1) Ordinance No. 1108 - Amending Sections of the Zoning Code of the LosBanos Municipal Code Relating to Cottage Food Operations AmendingTitle 9, Chapter 3. (First Reading & Introduction)

Recommendation: Receive staff report, open public hearing, receive public comment, closepublic hearing, waive the first reading, and introduce the ordinance as submitted.

Los Banos City Council Agenda - April 17, 2013 0(3

9. CONSIDERATION OF THE ADOPTION OF CITY COUNCIL RESOLUTION NO.5481 - APPROVING DEED IN LIEU OF FORECLOSURE AGREEMENT ANDAUTHORIZING THE ACCEPTANCE OF A DEED IN LIEU OF FORECLOSUREAND AUTHORIZING THE MAYOR OR ACTING CITY MANAGER TO EXECUTETHE AGREEMENT AND ALL NECESSARY DOCUMENTS PERTAINING TO THEPROPERTY LOCATED AT 203 N. SANTA ROSA STREET, LOS BANOS,CALIFORNIA [NEIGHBORHOOD STABILIZATION PROGRAMj.

Recommendation: Receive staff report and adopt the resolution as submitted.

10. ECONOMIC DEVELOPMENT ADVISORY COMMITTEE (EDAC) VACANCYUPDATE.

Recommendation: Receive staff report.

11. CONSIDERATION OF MOVING THE MEETING TIME FOR THE MAY 1, 2013REGULAR MEETING TO 5:30 P.M.

Recommendation: Direction from the City Council on how to proceed.

12. ADVISEMENT OF PUBLIC NOTICES. (One Report)

13. CITY MANAGER REPORT.

14. CITY COUNCIL MEMBER REPORTS.

A. Deborah Lewis

B. Scott Silveira

C. Elizabeth Stonegrove

D. Tom Faria

E. Mayor Mike VillaIta

15. ADJOURNMENT.

I hereby certify under penalty of perjury under the laws of the State of California, that the foregoingagenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting.

.g to: eO<. 't.kut~Lucille L Mallonee, City Clerk Dated this 11 1h day of April 2013

Los Banos City Council Agenda Aprif 17, 2013 013

CK #140650- #140933 04/17/13Bank ReconciliationChecks By Date

$809,540.15

LOS Banos04/08/2013 - 2: 10 PM

User: jdemelo

Cleared and Not Cleared Checks

Check No Check Date Name Comment ModuleVoid Clear Date Amount

140651 03/27/2013 Bank ofAmerica AP 27.72140652 03/27/2013 Bank ofAmerica AP 1.81140653 03/27/2013 US Bank Corp Pymt System AP 80.00140654 03129/2013 Alhambra AP 132.39140655 03/29/2013 ABS Direct, Inc. AP 4,500.00140656 03/29/2013 Ameripridc Valley Uniform Scrv AP 71.68140657 03/29/2013 Aramark Uniform Ser Inc AP 524.71140658 03/29/2013 AT&T AP 471.35140659 03/29/2013 Bonander Pontiac, Inc. AP 110.99140660 03/29/2013 Bruce's Tire Inc AP 4,191.24140661 03/29/2013 BSK AP 1,767.00140662 03/29/2013 California Rural Water Assoc. AP 1,030.00140663 03129/2013 Cal Traffic AP 1,451.58140664 03129/2013 Cascade Subscription Service, AP 109.95140665 03/29/2013 Chevron Usa Inc AP 91.93140666 03/29/2013 Concrete Cutting Unlimited AP 1,000.00140667 03/2912013 Susan C. Covello AP 160.00140668 03/29/2013 Corneast AP 83.44140669 03/29/2013 County of Santa Clara AP 244.26140670 03/29/2013 Davidson's Training AP 250.00140671 03/29/2013 Dept of Public Health Services AP 3,213.00140672 03/29/2013 Employee Relations, Inc. AP 50.00140673 03/29/2013 Ferguson Enterprises Inc DBA AP 1,782.31140674 03/29/2013 Flint Trading Inc. AP 1,923.91140675 03/29/2013 Ford Motor Credit AP 5,274.95140676 03/29/2013 Garton Tractor Inc AP 99.75140677 0312912013 DarraH Gargano AP 398.96140678 03/29/2013 Grassland Water District AP 107,106.40140679 03/29/2013 Helena Chemical Co Inc AP 1,019.25140680 03/29/2013 Kimball Midwest AP 374.37140681 03/29/2013 Tanunie Ketcher AP 600.00140682 03/29/2013 Les Schwab Tire Centers of Ceo AP 464.08140683 03/29/2013 Liebert Cassidy Whitmore AP 3,987.00140684 03/29/2013 Los Banos Volunteer AP 2,000.00140685 03/29/2013 Los Banos Ministries AP 815.00140686 03/2912013 Los Banos Unified School Distr AP 166.17140687 03129/2013 Steve MaciHas AP 89.50140688 03/29/2013 Marfab Inc AP 378.28140689 03/29/2013 Jennifer Mathews AP 150.00140690 03/2912013 McCrorneter Inc. AP 70.82140691 03/29/2013 Merced County Dept Of Agricult AP 770.00140692 03/29/2013 Merced Sun Star AP 116.25140693 03/29/2013 Napa Auto Parts AP 150.26140694 03/29/2013 North Central Laboratories AP 66.21140695 03/29/2013 Gerald 1l0bie" O'Brien AP 77.14140696 03/29/2013 The Oflice City AP 114.67140697 03/29/2013 OSE AP 407.77140698 03/29/2013 Evelyn Pereira AP 92.46140699 03/29/2013 PERS - Public Employees AP 113,296.81140700 03/29/2013 Provost and Pritchard Engineer AP 865.00

BR· Checks by Date (04/08/2013· 2:10 PM) Page

Check No Check Date Name Comment ModuleVoid Clear Date Amount

140701 03/29/2013 Safety-Kleen Systems, Inc. AP 80.00

140702 03/29/2013 Scott Savage AP 640.00

140703 03/29/2013 Santos Ford Lincoln Mercury, I AP 1,325.40

140704 03/2912013 Sorensens True Value AP 379.31

140705 03/29/2013 Steam Cleaners Inc AP 320.94

140706 03/29/2013 Triangle Rock Products AP 1,963.18

140707 03/29/2013 U.S. Bank Equipment Finance AP 1,300.79

140708 03129/2013 United Textile AP 153.17

140709 03/29/2013 USA Blue Book AP 217.92

140710 03/29/2013 Andrew & Erica Meza AP 82.95

140711 03/29/2013 Hilda Rosales AP 10.58

140712 03/29/2013 Westhill Property Mgmt AP 2.59

140713 03/29/2013 Prudential California Realty, AP 63.46

140714 03/29/2013 Mark & Cindy Bieber AP 29.38

140715 03/29/2013 Syed Oilani AP 68.35

140716 03/29/2013 Nabil & Basma Batmani AP 2.59

140717 03129/2013 Joyce Gamboa AP 32.16

140718 03/29/2013 Brenden & Mandy Goodrich AP 36.68

140719 03/29/2013 Robert and Kim Birdsall AP 26.25

140720 03129/2013 Juan Valdovinos Sotelo AP 14.75

140721 03/2912013 California Equity Management AP 36.68

140722 03/29/2013 California Equity Management AP 65.57

140723 03/2912013 California Equity Management AP 51.29

140724 03/29/2013 Thien Pham AP 51.29

140725 03/29/2013 Claudia Salano AP 31.81

140726 03/29/2013 Virginia Cuevas AP 65.90

140727 03/29/2013 James Buhler, 1Il AP 61.04

140728 03129/2013 Juan Kadah AP 75.65

140729 03/29/2013 Luz Dary Wrigley AP 4.25

140730 03/29/2013 Barrie Chapman AP 8.71

140731 03/29/2013 Abhijit Khinvasara AP 24.50

140732 03/29/2013 Amanda Dominguez AP 95.96

140733 03129/2013 Law Offices of William A Vaugh AP 9,000.00

140734 03/29/2013 Verizon Wireless AP 158.26

140735 03/29/2013 Westamerica Bank - Cafeteria P AP 53,677.96

140736 03/29/2013 Jennifer Williams AP 932.50

140737 03/29/2013 Windecker Inc AP 22.69

140738 03/29/2013 Young's Automotive AP 478.04

140739 03/29/2013 EmiZako AP 195.00

140740 04/03/2013 Hector Castillo AP 215.00

140741 04/03/2013 City of Los Banos Escrow Accou AP 2,168.00

140742 04/03/2013 Ramon Mcdonald AP 28.22

140743 04/0312013 P 0 & E Company AP 81,518.66

140744 04/03/2013 PO & E Company AP 3,341.19

140745 04/0312013 Credit Bureau Associates AP 1l9.33

140746 04/03/2013 Credit Bureau Associates AP 83.86

140747 04/0312013 Westamerica Bank - Cafeteria P AP 234,826.82

140777 04/04/2013 Aflac~Customer Service AP 171.24

140778 04/04/2013 Aflac~Customer Service AP 158.15

140779 04/04/2013 Aflac-Customer Service AP 40.95

140780 04/04/2013 Afiac-Customer Service AP 118.99

140781 04/04/2013 Bank of America AP 88,1l5.88

140782 04/04/2013 Bank ofAmerica AP 2,386.82

140783 04/04/2013 Bank of America AP 9,931.03

140784 04/04/2013 Hartford Life Ins Co AP 835.34

140785 04/04/2013 Hartford Life Ins Co AP 5,202.50

140786 04/04/2013 ICMA-RC Headquarters AP 1,605.00

140787 04/04/2013 In Shape Health Clubs Inc AP 448.00

140788 04/04/2013 Los Banos Police Assn AP 2,274.00

140789 04/04/2013 Nationwide Retiremt Solut AP 1,790.00

140790 04/04/2013 PERS Long Term Care AP 136.03

140791 04/04/2013 Professional Fire Fighter AP 630.00

BR - Checks by Date (04/08/2013 - 2:10 PM) Page 2

Check No Checl, Date Name Comment ModuleVoid Clear Date Amount

140792 04/04/2013 State Disbursement Unit AP 2,336.50

140793 04/04/2013 Westamerica Bank - Cafeteria P AP 8,053.31

140865 04/05/2013 Zoom Imaging Solutions, Inc. AP 95.79

140866 04/05/2013 Young's Air Conditioning AP 1,614.00

140867 04/05/2013 Windecker Inc AP 1,400.66

140868 04/05/2013 Wausau THe, Inc. AP 10,137.37

140869 04/05/2013 Verizon Wireless AP 128.11

140870 04/05/2013 Maria Gonzalez AP 34.25

140871 04/05/2013 Jacqueline Paratore AP 5.03

140872 04/05/2013 Felipe Arellauo Jr. AP 41.55

140873 04/05/2013 Gabriel Borba AP 29.45

140874 04/05/2013 Vanessa Hernandez AP 43.03

140875 04/05/2013 Ann Hudson AP 7.46

140876 04/05/2013 Ham'll Bhullar AP 65.91

140877 04/05/2013 JiaHuaug AP 65.90

140878 04/05/2013 Elpidio & Guillennina Zamora AP 41.55

140879 04/05/2013 Barbara Rusk AP 34.25

140880 04/05/2013 Raymundo & MargariTa Lozauo AP 7.45

140881 04/05/2013 Monique Finley AP 46.42

140882 04/05/2013 DLP Real Estate, Inc. AP 63.46

140883 04/05/2013 PMZ Real EsTate. Imelda Ruiz AP 48.85

140884 04/05/2013 Julio Sandoval AP 34.25

140885 04/05/2013 Lino and Maria Fatima Silveira AP 34.80

140886 04/05/2013 Steven Nunes AP 209.oI

140887 04/05/2013 Christina Tovar AP 36.68

140888 04/05/2013 U.S. Bank Equipment Finance AP 116.01

140889 04/05/2013 Sutter Central Valley Hospital AP 500.00

140890 04/05/2013 SBRPSTC AP 230.00

140891 04/05/2013 Sorensens True Value AP 595.97

140892 04/05/2013 Save Mart Supennarkets AP 184.78

140893 04/05/2013 Santos Ford Lincoln Mercury, I AP 78.65

140894 04/05/2013 Gloria Rojas AP 500.00

140895 04/05/2013 Radio Shack Accounts Rec AP 7.87

140896 04/05/2013 Protech Security & Electronics AP 180.00

140897 04/05/2013 The Phone Connection Inc AP 142.50

140898 04/05/2013 Peelle Technologies Inc. AP 1,712.00

140899 04/05/2013 Richard Ortiz AP 9.05

140900 04/05/2013 OSE AP 15.88

140901 04/05/2013 Nextel AP 83.75

140902 04/05/2013 Napa Auto Parts AP 30.14

140903 04/05/2013 N & S Dos Palos Tractor AP 47.09

140904 04/05/2013 Merced Uniform & Accessories AP 810.00

140905 04/05/2013 Merced Truck &Trailer Inc AP 45.36

140906 04/05/2013 Merced Sun Star AP 161.70

140907 04/0512013 Merced Chevrolet Inc. AP 963.90

140908 04/05/2013 Marfab Inc AP 121.91

140909 04/05/2013 Los Banos Congregation AP 500.00

140910 04/05/2013 Los Banos Vet Clinic AP 300.00

140911 04/05/2013 Los Banos Express Oil & Lube AP 37.56

140912 04/05/2013 Krazan & Associates Inc AP 2,017.75

140913 04/05/2013 Ana Guillen AP 325.00

140914 04/05/2013 Galls Inc AP II 0.57

140915 04/05/2013 Ferguson Enterprises Inc DBA AP 660.94

140916 04/0512013 Fastcnal Compauy AP 276.80

140917 04/05/2013 Dept of Conservation AP 374.46

140918 04/05/2013 LN Curtis & Sons AP 1,464.36

140919 04/05/2013 Cook's Communications Corp. AP 302.20

140920 04/05/2013 Comcast AP 84.53

140921 04/0512013 Paul Cervantes AP 75.00

140922 04/05/2013 Luis Castellanos AP 150.00

140923 04/05/2013 Capital One Commercial AP 110.03

140924 04/05/2013 California Building Standards AP 150.00

BR· Checks by Date (04/08/2013 - 2:10 PM) Page 3

Check No Checl, Date Name Comment ModuleVoid Clear Date Amount

140925 04/05/2013 BSK AP 210.00140926 04/05/2013 Bruce's Tire Inc AP 2.14140927 04/05/2013 Jeff Bondi AP 9.05140928 04/05/2013 Honander Pontiac, Inc. AP 67.11140929 04/05/2013 Bank ofAmerica AP 0.49140930 04/05/2013 Bank ofAmerica AP 7.42140931 04/0512013 AT&T AP 360.37140932 04/05/2013 Aramark Unifonn Ser Inc AP 243.64140933 04/05/2013 Ameripride Valley Unifonn Serv AP 396.20

Total for Valid Checks: 809,540.15

Break in Check Sequence due to the followingCheck # 140650, 140748·140776 (payroll checks)

BR· Checks by Date (04/08/2013· 2:10 PM)

Total Valid Checks:Total Void Checks:

Total Checks:

Page

183o

183

4

LOS Banos

TO:

FROM:

DATE:

Agenda Staff Report

Mayor & City Council Members

Martha Brazil, City Treasurer/Accountant 1I'-1'l\b

April 17, 2013

SUBJECT: Acceptance of the Third Quarter Investment Report for 2012/2013

TYPE OF REPORT: Consent Agenda

Recommendation:To accept the quarterly investment report as submitted.

Background:The City of Los Banos follows its investment policy to assure that it invests all surplusinactive monies in a manner which ensures a maximum return consistent with safety onsuch investments while maintaining the integrity of such surplus and inactive funds. Aquarterly investment report provides proof that City funds are invested in such amanner. It includes all investments except funds held by City's trustee. Funds held bytrustee include bond reserve funds, deferred compensation plans and other postretirement benefit funds.

Fiscal Impact:Informational only, no fiscal impact.

Reviewed by:

Attachments:City of Los Banos Third Quarter 2012/2013 Investment Report

LOS BanosAt tlie Crossroads of Ca!ij(Jrnia

In accordance with Government Code Section 53646 and the City of Los BanosInvestment Policy, the following shall constitute the quarterly report of investment onbehalf of the City ofLos Banos:

Investment BalancesAs of March 31, 2013

Amount AnnualIssuer Maturity Invested

PercentageYield

State ofDaily $29,489,383.

.285%California effective yield

Wells FargoStaggered

11,433,719. .80% - 5.40%5 years

Type of Investment

LAIF (Local AgencyInvestment Fund)

Bonds (Fannie Mae Note,Freddie Mac MediumTenn Note) Treasury

Money Market Funds andCD's

Money Market FundsSchool Project

Investment Balance:

Wells Fargo Daily 25,061.

$40,948,163.

0.05%

I. As of the date of this report, the majority of the City of Los Banos funds are invested in the State of CalifomiaLocal Agency Investment Fund (LAIF), in accordance with section 16429.1 of the Governmental Code.

2. As of the date of this report, the remainder of the City of Los Banos' funds are deposited in Fannie Mae Note,Freddie Mac Medium Term Note, and various FDIC insured Certificates of Deposits held with Wells FargoSecurities, LLC. Therefore, as provided by Governmental Code Section 53646 (e) attached are the most recentstatement(s) received by the City of Los Banos.

3. The portfolio ofthe City ofLos Banos is in compliance with the City of Los Banos' Investment Policy.

4. The investment balances are reconciled monthly to the General Ledger by the Finance Department.

5. It is expected that the City will be able to meet its projected expenditure requirements for the next six months.

LAIF Regular Monthly Statement

Local Agency Investment FundP.O. Box 942809Sacramento, CA 94209-0001(916) 653-3001CITY OF LOS BANOS

CITY TREASURER520) STREETLOS BANOS, CA 93635

PMIA Avera?e Monthlv Yields

Account Number:98-24-490

Tran Type Definitions

Page 1 of 1

www.treasurer.ca.gov/pmia-Iaif

April 09, 2013

March 2013 Statement

Account Summary

Total Deposit:

Total Withdrawal:

0.00 Beginning Balance:

0.00 Ending Balance:

29,489,383.27

29,489,383.27

https://laifins.treasurer.ca.gov/RegularStatement.aspx 4/9/2013

Pooled Money Investment Account

PMIA Average Monthly Effective Yields

~A;;lMay Jun Jut Aug Sep Oct Nov Dec

1197'15.770 5.660 5.660 5.650 5.760 5.850 5.930 6.050 6.090 6.090 6.610 6.730

1197816.92°17.050 17.140 7.270 7.386 7.569 7.652 7.821 7.871 8.110 8.286 8.769

1197918777 18.904 18820 19.082 [9.046 9.224 9.202 9.528 9.259 9.814 10.223 10.218

11980 10.980 11.251 11.490 11.480 12.017 11.798 10.206 9.870 9.945 10.056 10.426 10.961

'1981 10.987 11.686 11.130 11.475 12.179 11.442 12.346 12.844 12.059 12.397 11.887 11.484

11982 11.683 12.044 11.835 11.773 12.270 11.994 12.235 11.909 11.151 11.111 10.704 10.401

11983 10.251 9.887 9.688 9.868 9.527 9.600 9.879 10.076 10.202 10.182 10.164 10.227

:1984 10.312 10.280 10.382 10.594 10.843 11.119 11.355 11.557 11.597 11.681 11.474 11.024,

!1985 10.579 10.289 10.118 10.025 10.180 9.743 9.656 9.417 9.572 9.482 9.488 9.371

1198619.252 19.090T8.958l8.621 18.369 18.225 1-8.141 7.844 7.512 7.586 7.432 7.439

11987 7.365 7.157 7.205 7.044 7.294 7.289 7.464 7.562 7.712 7.825 8.121 8.071

11988 8.078 8.050 7.945 7.940 7.815 7.929 8.089 8.245 8.341 8.397 8.467 8.563

[1989 8.698 8.770 8.870 8.992 9.227 9.204 9.056 8.833 8.801 8.771 8.685 8.645

!J990 8.571 8.538 8.506 8.497 8.531 8.538 8.517 8.382 8.333 8.321 8.269 8.279

!1991 18.164 [8.002 17.775 1766617.37417.16917.09817.07216.85916.71916.591 6.318

!1992 6.122 5.863 5.680 5.692 5.379 5.323 5.235 4.958 4.760 4.730 4.659 4.647

i1993 4.678 4.649 4.624 4.605 4.427 4.554 4.438 4.472 4.430 4.380 4.365 4.384

[1994 4.359 4.176 4.248 4.333 4.434 4.623 4.823 4.989 5.106 5.243 5.380 5.528

!1995 5.612 5.779 5.934 5.960 6.008 5.997 5.972 5.910 5.832 5.784 5.805 5.748

11996 5.698 5.643 5.557 5.538 5.502 5.548 5.587 5.566 5.601 5.601 5.599 5.574

11997 5.583 5.575 5.580 5.612 5.634 5.667 5.679 5.690 5.707 5.705 5.715 5.744

!1998 5.742 5.720 5.680 5.672 5.673 5.671 5.652 5.652 5.639 5.557 5.492 5.374

11999 5.265 5.210 5.136 5.119 5.086 5.095 5.178 5.225 5.274 5.391 5.484 5.639

12000 5.760 5.824 5.851 6.014 6.190 6.349 6.443 6.505 6.502 6.517 6.538 6.535

:2001 6.372 6.169 5.976 5.760 5.328 4.958 4.635 4.502 4.288 3.785 3.526 3.261

:2002 3.068 2.967 2.861 2.845 2.740 2.687 2.714 2.594 2.604 2.487 2.301 2.201

12003 2.103 1.945 1.904 1.858 1.769 1.697 1.653 1.632 1.635 1.596 1.572 1.545

12004 1.528 1.440 1.474 1.445 1.426 1.469 1.604 1.672 1.771 1.890 2.003 2.134

12005 2.264 2.368 2.542 2.724 2.856 2.967 3.083 3.179 3.324 3.458 3.636 3.808

'2006 3.955 4.043 4.142 4.305 4.563 4.700 4.849 4.946 5.023 5.098 ]5."125 5.129

1200715.156 IsJ8il5.2l4l5.222 15.248 5.250 5.255 5.253 I 5.231 5.137 4.962 4.801

[2008 4.620 4.161 3.777 3.400 3.072 2.894 2.787 2.779 2.774 2.709 2.568 2.353

12009 2.046 1.869 1.822 1.607 1.530 1.377 1.035 0.925 0.750 0.646 0.611 0.569

12010 0.558 0.577 0.547 0.588 0.560 0.528 0.531 0.513 0.500 0.480 0.454 0.462

12011 0.538 0.512 0.500 0.588 0.413 0.448 0.381 0.408 0.378 0.385 0.401 0.382

12012 0.385 0.389 0.383 0.367 0.363 0.358 0.363 0.377 0.348 0.340 0.324 0.326

12013 0.300 0.286 0.2851

\ .._.

II Your Investment Account(s)

,.-,Page 1 of 6

Statement Period

03/01/2013 - 03/31/2013

Account Number3AB28736

11,367,678.051%

$

CITY OF LOS BANOSAnN MARTHA BRAZIL

Account Value Summary USD This summary does no! reflect the___________________________________ vafue of unpriced securities.

Amount Last Amount This % Repurchase agreements are reflectedStatement Period Statement Period Portfal"lo at par value.

Cash $ 0.00 $ 0.00 0%Money Market Mutual Funds 303,634.54 70,502.91 1%Bonds 11,128,537.43 11,363,215.90 99%Stocks 0.00 0.00 0%Total Account Value $ 11,432,171.97 $ 11,433,718.81 100%

Value Change Since Last Statement Period $ 1,546.84Percent Increase Since Last Statement Period 0%

Value Last Year-EndPercent Increase Since Last Year-End

Income Summary USD

Wells Fargo Institutional Securities, LLC400 CAPITOL MALLSACRAMENTO CA 95814

JUSTIN LEWIS1-800-645-3751

This Period Year-To-Date

Interest $ 11,868.37 $Dividends/Capital Gains 0.00Money Market Mutual Funds Dividends 0.00Other 0.00

Income Total $ 11,868.37 $

Money Market Mutual Funds Summary USD

62,406.470.000.010.00

62,406.48

Description Amount

Opening BalanceDeposits and Other AdditionsDistributions and Other SubtractionsIncome Earned

Closing Balance

$ 303,634.549,681049

242,813.120.00

$ 70,502.91

114719111018:l/;6000111S017U....17:l5974-000BUI4 14881J.lI00147:l7004i03l13 p II

Important Information

This statement is provided to customers of Wells FargoInstitutional Securities, LlC (WFIS). Statements are providedmonthly for accounts with transactions and/or security positions.WFIS accounts are carried and maintained by Wells FargoSecurities, LLC rWFS"), which provides clearing andsafekeeping services for WFIS. The account statement contains alist of securities held in safekeeping by WFS as of the statementdate and provides details of purchase and sale transactions, thereceipt and disbursement of cash and securities, and otheractivities relating to the account during the statement period.

For WFIS customers who choose to maintain a safekeepingaccount at Wells Fargo Bank, N.A. rBank"), this statement isaccompanied by a separate Bank safekeeping statement. TheBank safekeeping statement, if applicable, contains a list ofsecurities held in safekeeping by the Bank as of the statementdate.

Pricing: Security and brokered certificate of deposit ("CO")prices shown on the statement are obtained from independentvendors or internal pricing models. While we believe the pricesare reliable, we cannot guarantee their accuracy. Forexchange·listed securities, the price prOVided is the closing priceat month end. For unlisted securities, it is the "bid" price atmonth end. The prices of CDs that mature in one year or less areshown at last price traded. The price of CDs that mature ingreater than one year and of other instruments that tradeinfrequently are estimated using similar securities for which pricesare available. Prices on the statement may not necessarily beobtained when the asset is sold.

Brokered CD Pricing: Like bonds, brokered COs are SUbject toprice fluctuation and the value of a CO, if sold prior to maturity,may be less than at the time of its purchase. Significant loss ofprincipal could result. While WFS generally makes a market inCDs it underwrites, the secondary market for CDs that it does notunderwrite may be very limited. In those cases, WFS will makeits best effort to help investors find a buyer.

SIPC: WFIS and WFS are members of the Securities InvestorProtection Corporation ("SIPC"). In the event of insolvency orliquidation of WFS, securities held in safekeeping at WFS arecovered by SIPC against the loss, but not investment risk, up toa maximum of $500,000 per customer, which includes a$250,000 limit on claims for cash held in the account. SIPCprotection does not provide any protection whatsoever againstinvestment risk, including the loss of principal on an investment.This coverage does not apply to securities held in safekeeping bythe Bank. Additional information about SIPC, including a SIPCbrochure, may be obtained by visiting www.sipc.org or by callingSIPC at 202-371-8300.

FINRA BrokerCheck Program: WFBS is a member of theFinancial Industry Regulatory Authority (FINRA). Under itsBrokercheck program, FINRA provides certain informationregarding the disciplinary history of broker/dealers and theirassociated persons. Information can be obtained from the

FINRA BrokerCheck program hotline number (800-289-9999)or the FINRA web site (www.finra.org). A brochure describingthe FINRA BrokerCheck program wm be furnished uponwritten request.

Free Credit Balances: Any customer free credit balancesmay be used in the business of WFS subject to limitation of17 CFR Section 240 15c(3)2 under the SecuritiesExchange Act of 1934. In the course of normal businessoperations, a customer has the right to receive delivery of thefollowing: any free credit balances to which he or she isentitled, any fully paid securities to which he or she is entitled,and any securities purchased on margin upon fUll payment ofindebtedness to WFS.

Equity Order Routing: WFIS introduces all equity orders toWFS. WFS will route equity orders taking into considerationamong other factors, the quality and speed of execution, aswell as the credits, cash or other payments it may receivefrom any exchange, brokerMdealer or market center. This maynot be true if a customer has directed or placed limits on anyorders. Whenever possible, WFS will route orders in anattempt to obtain executions at prices equal or superior to thenationally displayed best bid or offer. WFS will also attempt toobtain the best execution regardless of any compensation itmay receive. WFS uses the compensation received to helpkeep costs competitive and provide customers with qualityexecution services. The nature and source of credits andpayments WFS receives in connection with specific orderswill be furnished to a customer upon request. WFS preparesquarterly reports describing its order routing practices fornonMdirected orders routed to a particular venue for execution.A printed copy of this report is available upon written requestor by visiting: www.1ta.thomson.comlreportsl1 M6/wchv!. WFISwill provide more detailed information relating to the routing ofany order executed within six months of the request.

Equity Extended Hours Trading: See important informationrelating to equities trading before and after regular tradinghours at: www.wellsfargo.comlcom/securities/regulatory.

Equity Open Orders: Open orders will remain'in effect untilexecuted or canceled by you. Failure to cancel an open ordermay result in the transaction being executed for your account.WFS has no responsibility to cancel an open order at its owninitiative.

Dividend Reinvestment: In any dividend reinvestmenttransaction, WFS acted as agent. Additional informationregarding transactions of this nature will be fumished to acustomer upon written request.

Account Transfers: A fee will be charged to customerstransferring their existing WFIS account to anotherbroker/dealer or any other financial institution.

Non-deposit investment products recommended,offered or sold by WFIS, inclUding mutual funds, arenot federally insured or guaranteed by or obligations ofthe Federal Deposit Insurance Corporation ("FDIC"),

, c,. j'.-

the Federal Reserve System or any other agency; are notbank depositsj are not obligations of, or endorsed orguaranteed in any way by any bank or WFISj and aresubject to risk, including the possible loss of principal, thatmay cause the value of the Investment and investmentreturn to fluctuate. When the investment is sold, the valuemay be higher or lower than the amount originally Invested.WFIS and WFS are subsidiaries of Wells Fargo & Company,neither is a bank or thrift, and they are separate from anyother affiliated bank or thrift. WFIS and WFS are registeredbroker/dealers and members of FINRA. No afliliate of WFISor WFS is responsible for the securities sold by WFIS orWFS.

Mutual Funds: The distributor of Wells Fargo Advantage Fundsis affiliated with WFIS and WFS. Mutual funds are sold byprospectus only. Please read the prospectus for furtherinformation including sales charges, deferred sales charges,withdrawal charges and management or other fees.

Financial Statements: WFIS financial statements are availableupon request.

Trade Confirmations: Investment purchases and sales aresubject to the terms and conditions stated on the tradeconfirmation relating to that transaction. In the event of a conflictbetween the trade confirmation and this statement, the tradeconfirmation will govern.

Customer Complaints and Reporting Discrepancies:Customer complaints, statement reporting inaccuracies ordiscrepancies should be promptly reported in writing to:

Customer Service608 Second Avenue SouthSuite 500 MAC N9303-054Minneapolis, MN 55402wfscustomerservice@ wellsfargo.com

Customers may also report complaints, inaccuracies ordiscrepancies by calling 1-800-645-3751 opt 5. Internationalcallers should call 877M856M8878. To further protect theirrights, including rights under the Securities InvestorProtection Act, customers should also reMconfirm in writing tothe above address any oral communications with WFISrelating to the inaccuracies or discrepancies.

Eurodollar Deposits: Funds invested in a EurodollarDeposit are held on deposit at the Bank's Grand CaymanIsland branch, a foreign branch of the Bank. As an offshoredeposit liability payable at the Bank's Grand Cayman Islandbranch, the deposits are subject to Grand Cayman Islandlaws, regulations and governmental actions regardingexchange controls, assets seizures and other restrictions.Deposits payable only outside the U.S. also have a lowerpriority than deposits payable at a U.S. branch in liquidation.In addition, deposits held in a foreign U.S. bank branch arenot insured by the FDIC or otherwise guaranteed by theU.S. government or any of its agencies.

',- "'."~j>age 3 of 6

CITY OF LOS BANOSStatement Ending: March 31, 2013

Account Number: 3AB28736

Portfolio Holdings Security posWons held with WeJls Fargo Securities, LLC

Current Par I Market Market Original ParSecurity 10 Description Maturity Date Coupon Original Par Price* Value P'~dged"* Callable

Bonds USD

05565JEB6 BPD BANK NY INT BEARING CERT 0 05/28/13 1.600% 110,000,000 100,1837 110,202.07FDEPOSIT

06051VRG3 BANK OF AMERICA NA INT BEARING 05/28113 1.900% 245,000.000 100.2637 245,646,07CERT OF DEPOSIT

336506CB4 FIRST ST BK & TR CO VALDOSTA G 05/28113 1.700% 245,000.000 100.1990 245,487.55A INT BEARING CERT OF DEPOSIT

31938QSYl FIRST BUSINESS BK WIS INTREST 06117/13 2,300% 245,000.000 100.4158 246,018.71BEARING CERT OF DEPOSIT

20449E2U9 COMPASS BANK INT BEARING CERT 09/03113 0.800% 245,000.000 100.2078 245,509.11OFDEP

69911Q2A2 PARAGON COMMERCIAL BK NC INTE 12111113 2.600% 245,000.000 101.4599 248,576.76REST BEARING CERT OF DEPOSIT

70212YAF9 PARTNERS BK OF CALIFORNIA INTE 12116113 2.400% 245,000.000 101.5006 248,676.47REST BEARING CERT OF DEPOSIT

87164DAC4 SYNOVUS BANK GA INTEREST BEARI 02125/14 1.450% 245,000.000 101.3473 248,300.89NG CERTIFICATE OF DEPOSIT

855736CV4 STATE B&T OH INTEREST BEARING 06/27114 2.000% 50,000.000 102.0178 51,008.90CERT OF DEPOSIT

02587DCB2 AMERICAN EXPRESS CENT INT BEAR 08/11114 1.200% 245,000.000 101.0264 247,514.68ING CERT OF DEP

36160XRX7 GE CAPITAL FINANCIAL INTEREST 06/10/15 1.800% 245,000.000 101.9222 249,709.39BEARING CERT OF DEPOSIT

74824XCR5 QUEENSBOROUGH NATIONAL B&T CO. 07/30/15 2.300% 100,000.000 104.0415 104,041.50LOUISVILLE GA INT BEARING CER

TOFDEPOSIT

786580X96 SAFRA NAT'L BK NY INTEREST BEA 07/31/15 0.800% 245,000.000 100.6187 246,515.82RING CERT OF DESPOSIT

14042E3S7 CAPITAL ONE NA MCLEAN VA INT B 08/25115 2.000% 245,000.000 102.7884 251,831.58EARING CERT OF DEPOSIT

140420MW7 CAPITAL ONE USA GLEN ALLEN VA 08/25/15 2.000% 245,000.000 103.8797 254,505.27INT BEARING CERT OF DEPOSIT

05568PYF8 BMW BANK NORTH AMERICA INT BEA 08127/15 2.200% 245,000.000 103.6297 253,892.77RING CERT OF DEPOSIT

59012YK71 MERRICK BANK INT BEARING CERT 08/31/15 1.250% 245,000.000 102.4827 251,082.62OFDEP

856283QY5 STATE BANK OF INDIA ILINT BEA 09/29/15 2.250% 205,000.000 103.0677 211,288.79RING CERT OF DEPOSIT

04119/ 10183680008 15011 UN.,11359l<!_lIOO134514 141198.0001 4/310 04103/13 P I III I

016

CITY OF LOS BANOSStatement Ending: March 31, 2013

Account Number: 3AB28736

Portfolio Holdings (Continued) Security positions held with Welfs Fargo Securities, LLC

Current Par / Market Market Original ParSecurity 10 Description Maturity Date Coupon Original Par Price* Value Pledged" Callable

Bonds usa773709AM2 ROCKLAND TRUST CO INTEREST BEA 03128/16 2.050% 40,000.000 103.5387 41,415.48

RING CERT OF DEPOSIT

02005QMY6 ALLY BANK UT INT BEARING CERT 05/04/16 2.200% 245,000.000 103.5761 253,761.45OF DEPOSIT

46176PAKl INVESTORS SVGS INT BEAR CERT 0 05/05/16 2.200% 100,000.000 103.5775 103,577.50FDEPOSIT

73565NBD4 PORTAGE COUNTY BANK INT BEARIN 06115/16 1.800% 130,000.000 103.6649 134,764.37G CERT OF DEPOSIT

06279LCJl BANK INTERNET USA INTEREST BE 06/22116 1.900% 245,000.000 103.6681 253,986.85ARING CERT OF DEPOSIT

344030EB3 FLUSHING SAVINGS BANK INT BEAR 06/29/16 1.900% 245,000.000 103.7085 254,085.83ING CERT OF DEPOSIT

06425BBE8 BK OF THE PACIFIC INT BEAR CER 08/12/16 1.700% 245,000.000 103.7770 254,253.65TOFDEPOSIT

856283RL2 STATE BK OF INDIA IL INT BEAR 08/12116 2.000% 40,000.000 102.8441 41,137.64CERT OF DEPOSIT

133033DLl CAMDEN NATIONAL BANK INTEREST 08/17/16 1.750% 245,000.000 103.7797 254,260.27BEARING CERT OF DEPOSIT

52168UBNl LEADER BANK INT BEARING CERT 0 08/17116 1.800% 245,000.000 103.7764 254,252.18FDEP

3814264E2 GOLDMAN SACHS BK NY INT BEARIN 08/24/16 1.850% 245,000.000 102.2167 250,430.92G CERT OF DEPOSIT

924116AQ9 VERMILLION STATE BANK INT BEAR 08/31/16 1.500% 245,000.000 103.8111 254,337.20ING CERT OF DEP

17284AXXl CIT BANK INTEREST BEARING CE 09/08/16 1.800% 245,000.000 103.4166 253,370.67RTIFICATE OF DEPOSIT

36962G2G8 GENERAL ELECTRIC CAPITAL CORP 02115/17 5.400% 1,150,000.000 114.8601 1,320,891.15 NSRNT

36962G5WO GENERAL ELECTRIC CAPITAL CORP 04/27117 2.300% 1,500,000.000 103.4850 1,552,275.00 NSRNT

94974BFD7 WELLS FARGO & CO SRNT 05/08117 2.100% 300,000.000 103.1207 309,362.10 N

36157PFA2 GE CAPITAL RETAIL INTEREST BEA 06/08/17 1.800% 245,000.000 101.9473 249,770.89RING CERTIFICATE OF DEPOSIT

254671ER7 DISCOVER BANK INTEREST BEARING 08/01/17 1.700% 245,000.000 101.5984 248,916.08CERTIFICATE OF DEPOSIT

795450PJ8 SALLIE MAE BK INTEREST BEARING 09/19/17 1.600% 245,000.000 101.0979 247,689.86CERTIFICATE OF DEPOSIT

CITY OF LOS BANOSAccount Number: 3AB28736

Portfolio Holdings (Continued) Security positions held with Wells Fargo SecuriYes, LLC

Statement Ending:~~age 5 of 6

March 31, 2013

Current Par I Market MarketSecurity 10 Description Maturity Date Coupon Original Par Price* Value

Bonds USD

29976DPYO EVERBANK FllNTEREST BEARING C 11/30/17 1.100% 125,000.000 100.7948 125,993.50ERTOFDEP

89233P7EO TOYOTA MOTOR CREDIT CORP SRNT 01/10/18 1.375% 500,000.000 100.4145 502,072.50060624XH1 BANK BARODA NY INTEREST BEARIN 03/08/18 1.250% 245,000.000 99.1028 242,801.86

G CERTOFDEP10,965,000.000 11,363,215.90

·See important information regarding security pricing on Page 2.

""Total amount that is pledged to or held for another party or parties. Refer to the Pledge Detail Report for more information.

Daily Account Activity

Original ParPledged"

0.00

Callable

N

Your investment transactions during this statement period.Settlement!

Transaction I EffectiveTrade Date Date Activily Security ID Description Par I Quantity

Transaction Activity USD

02/28/13 03108113 Purchase 060624XH1 BANK BARODA NY INTEREST BEARIN 245,000.00

Income I Payment Activity USD

03101/13 03101/13 Interest 924116AQ9 VERMILLION STATE BANK INT BEAR

03101/13 03101113 Interest 59012YK71 MERRICK BANK INT BEARING CERT

03108113 03108113 Interest 17284AXX1 CIT BANK INTEREST BEARING CE

03111113 03111113 Interest 69911Q2A2 PARAGON COMMERCIAL BK NC INTE

03/12/13 03112113 Interest 06425BBE8 BK OF THE PACIFIC INT BEAR CER

03/15113 03115/13 Interest 73565NBD4 PORTAGE COUNTY BANK INT BEARIN

03/15113 03115113 Interest 344030EB3 FLUSHING SAVINGS BANK INT BEAR

03118113 03118113 Interest 52168UBN1 LEADER BANK INT BEARING CERT 0

03/18/13 03118113 Interest 70212YAF9 PARTNERS BK OF CALIFORNIA INTE

03/18113 03/18113 Interest 133033DL1 CAMDEN NATIONAL BANK INTEREST

03/19113 03119113 Interest 795450PJ8 SALLIE MAE BK INTEREST BEARING

03/20113 03/20113 Interest 87164DAC4 SYNOVUS BANK GA INTEREST BEARI

03/22113 03/22113 Interest 06279lCJ1 BANK INTERNET USA INTEREST BE

03/26113 03/26113 Interest 14Q420MW7 CAPITAL ONE USA GLEN AllEN VA

03128113 03/28/13 Interest 855736CV4 STATE B&T OH INTEREST BEARING

03/28113 03128113 Interest 773709AM2 ROCKLAND TRUST CO INTEREST BEA

947'99 10183680009 15011 Utl,1736924·00013494 14988_000' 41370 ll4I03I'3 P

Principal Income Debit/ CreditPrice Amount Amounl Amount

100.0000000 (245,000.001 0.00 (245,000.001

281.92 281.92

234.93 234.93

2,186.88 2,186.88

488.66 488.66

319.51 319.51

179.51 179.51

357.10 357.10

338.30 338.30

451.07 451.07

328.90 328.90

1,943.89 1,943.89

1,790.85 1,790.85

357.10 357.10

2,470.14 2,470.14

76.71 76.71

62.90 62.90

III

CITY OF LOS BANOSAccount Number: 3AB28736

Money Market Fund Activity

Statement Ending:Page 6 of 6

March 31, 2013

All transactions are traded at $1.00 per shareWF Adv 100% Tress S 8

•As of March 31, 2013

usa

Dividend earnedthis period

0.00

7 day'simple yield

0.000%

30 day'simple yield

0.000%

TransactionDate Activity Principal Amount

Beginning BalanceDividend Amount Balance

303;634.5403/01/1303108113

03/11/1303/12113

03/15/1303/18/13

03/19/1303/21/13

03/2211303/27/13

03/28/13

PurchaseRedemption

PurchasePurchasePurchasePurchasePurchasePurchase

PurchasePurchasePurchase

Ending Balance

516.85(242,813.12)

488.66319.51536.61

1,118.271,943.891,790.85

357.102,470.14

139.61

304,151.3961,338.27

61,826.9362,146.44

62,683.0563,801.32

65,745.2167,536.06

67,893.1670,363.30

70,502.91

70,502.91

Business Premium Rate Public FundsAccount number: 8658584076 • March 1,2013-March31,2013. Page 1 of3 II

0423031 AVD.360 103792

"""/1"'/'11'1""'/""1'11"""'1"11",,,,,,,1,,,"'1',/I'CITY OF lOS BANOSSCHOOL PROJECT520J STLOS BANOS CA 93635-4240

Questions?

Available by phane 24 hours a day, 7 days a week:

1-800-CALL-WELLS (1-800-225-5935)

TTY: 1-800-877-4833En espaflO/: 1-877-337-7454

Online: wellsfargo.com/biz

Write: Wells Fargo Bank, N.A. (114)P.O. Box 6995Portland, OR 9722B-6995

Do;uGl

Your Business and Wells FargoStart the year with a new outlook on your business finances. It's a great time to talk with a banker about Financial options tailored to yourcurrent priorities. To find out how we can help, stop by any Wells Fargo location or call us at the number at the top of your statement.

Activity summaryBeginning balance on 3/1

Deposits/Credits

Withdrawals/D~b;ts

Ending balance on 3/31

Average ledger balance this period

Interest summaryInterest paid this statement

Average collected balance

Annual percentage yield earned

Interestei:lflled this st<:ltemenl period

Interest paid this year

Total interest paid in 2012

525,060.08

1.07

·0.00

S25,061.15

525,060.08

51.07

525,060.08

0.05%

51.07

53.09

$363.61

Account number: 8658584076

CITY OF lOS BANOSSCHOOL PROJEcT

California account terms and conditions apply

For Direct Deposit and Automatic Payments useRouting Number /RTN): 121042882

For Wire Transfers useRouting Number (RTN): 121000248

c

~

"~wowZZZZZZZZZZZZZZZZgoo~

Account number: 8658584076 • March 1,2013 - March 31, 2013 • Page 2 of 3

Transaction history

IIDeposits/

CreditsDate Description

~!~~" ..-~_m~,~!.~~~~~~~'!Y_~!!!~, ~m"~'~"_'_"'~O"~'_"' ' __~"'_~'~~~~""'~~~~"''''_U'," " O"'_'~~~"~"·"'~'~._"__"~m·,,'''_''''_·''Ending balance on 3/31

Totals

1.07

$1.07

Withdrawals/Debits

$0.00

Endingdai/ybalance

.. 3.s,06':~25,061.15

The Ending Daily Balance does not reflectany pending withdrawals or holds on deposited funds that may have been outstanding on your account when yourtransactions posted. Ifyou had insufficient available funds when a transaction posted, fees may have been assessed.

~ IMPORTANT ACCOUNT INFORMATION

We want to let you know of important upcoming changes to your Wells Fargo business savings account. These changes will beeffective starting March 2, 2013.

Your account includes, at no charge, up to $5,000 of cash deposited per month. "Cash deposited" will change to include cash depositsmade in ATMs and branch locations. The fee for cash deposited over $5,000 per month will change to $0.30 per $100 deposited.

If you exceed the amount of cash deposited included at no charge, the fees will appear on your account statement on or after April 1,2013.

Your account continues to include, at no charge, up to 20 deposited items per month. The fee for deposited items over 20 per month isSO.50 each. As a reminder, the definition of "deposited items" includes any combination of paper and electronic items.

Additional fee changes effective April 1, 2013- Excess Activity Fee for Savings Accounts - S15 per item- Collection Fee - Domestic Incoming and Outgoing - $25 per item- Legal Process Fee (includes levy, writ, garnishment and any other legal document that requires funds to be attached) - $125 each- Credit Inquiry Fee (deposit and/or credit account information provided to third party at your request) - S10 each

If you have questions about these changes, or would like a complimentary financial review to ensure that you have the right accountsto meet your financial goals, please contact your local banker or call the phone number listed at the top of your statement.

Effective June 18, 2013, American Express<» Travelers Cheques, Cheques for Two, and Gift Cheques will no longer be available throughWells Fargo.

Please note the Terms & Conditions for Wells Fargo Business Debit Cards, Business ATM Cards, and Business Deposit Cards, the sectiontitled "Making purchases with a business debit card", and Business Account Agreement section titled "Card Transactions" are changingto clarify that the Bank may limit the number of authorizations it allows during a period of time and reserves the right to deny certaintransactions for any reason (e.g., suspected fraudulent or unlawful activity, indication of increased risk related to the transaction).

For more details, refer to the Business Account Agreement Addenda at wellsfargo.com/biz/products/accounts/fee_information orcontact your local banker.

CITY OF LOS BANOSCITY COUNCIL MEETING MINUTES

APRIL 3,2013

ACTION MINUTES - These minutes are prepared to depict actiontaken for agenda items presented to the City Council. For greaterdetail of this meeting refer to the electronic media (CD and/or audio)kept as a permanent record.

Mayor VillaIta invited the public to come forward and speak regarding the ClosedSession items listed below. No one came forward to speak.

The following Closed Session items were held prior to the City Council Meetingbeginning at 6:00 PM.

CLOSED SESSION - PUBLIC EMPLOYMENT - CITY MANAGER, PURSUANT TOGOVERNMENT CODE 54957. Mayor VillaIta stated that there was no reportableaction; however, there will be action taken during the regular agenda on item 8 Consideration of Appointment of City Manager and Approval of City ManagerEmployment Agreement.

CLOSED SESSION - CONFERENCE WITH LABOR NEGOTIATORS, PURSUANTTO GOVERNMENT CODE SECTION 54957.6, AGENCY DESIGNATEDREPRESENTATIVES: ACTING CITY MANAGER/POLICE CHIEF BRIZZEE, CITYATTORNEY VAUGHN, CITY CLERK/ADMINISTRATIVE SERVICES DIRECTORMALLONEE, CONSULTANT TERI BLACK-BRANN; UNREPRESENTEDEMPLOYEE: CITY MANAGER. Mayor Villalta stated that there was no reportableaction; however, there will be action taken during the regular agenda on item 8 Consideration of Appointment of City Manager and Approval of City ManagerEmployment Agreement.

CALL TO ORDER: Mayor VillaIta called the City Council Meeting to order at the hourof 7:02 p.m.

PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Police SergeantReyes.

ROLL CALL - MEMBERS OF THE CITY COUNCIL PRESENT: Council MembersTom Faria, Deborah Lewis, Scott Silveira, Elizabeth Stonegrove, Mayor Michael Villalta;Absent: None.

STAFF MEMBERS PRESENT: City Attorney Vaughn, City Clerk/AdministrativeServices Director Mallonee, City Treasurer/Accountant II Brazil, Police Sergeant Reyes,Acting City Manager/Police Chief Brizzee, Fire Chief Guintini, Community DevelopmentDirector Fitzgerald, Public Works Director/City Engineer Fachin and InformationTechnology Director Spalding.

CONSIDERATION OF APPROVAL OF AGENDA: Motion by Silveira, seconded byStonegrove to approve the agenda as submitted. The motion carried by the affirmativeaction of all City Council Members present.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE CITY COUNCILMEMBERS ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THEJURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS.NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARELIMITED TO A FIVE IS) MINUTE PRESENTATION. DETAILED GUIDELINES AREPOSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. ANNMcCAULEY, Los Banos, spoke regarding being a spouse of a veteran and herhappiness to speak about the Veteran's Administration Health & Resource Fair beingheld at Bethel Community Church on April 17, 2013 from 9:00 a.m. to 2:00 p.m.;MATTEA CLARKE, Los Banos High School Senior, spoke regarding the Sawyer HobbsHistory Society 4th Annual Hobbs Run on Sunday, April 21, 2013 at 8:00 a.m. atPacheco State Park; CASSANDRA HELMRICK, Business Owner in Los Banos, spoketo the Los Banos Chamber of Commerce 4th of July event and the planned activities forthe day, spoke regarding the cost to put on the fireworks show, and encouraged all toparticipate in the fundraiser drive thru dinner on May 20,2013 at the DES Hall; JOHNWHALA, Los Banos Chamber of Commerce, reminded all about the spring street fairbeing held on April 20, 2013, spoke of the progress of the community calendar, andencouraged the community to support the 4th of July drive thru dinner fund raiser; JOECOX, Los Banos, reminded all about the anniversary for the World War II submarineservice veterans on April 11, 2013 and spoke to the history of the submarine service;RON HELMRICK, Los Banos, spoke regarding his submarine service in the UnitedStates Navy. No one else came forward to speak and the public forum was closed.

CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Council MemberSilveira spoke regarding item 7E - City Council Resolution No. 5475 - Consenting to aShort Sale and Authorizing Acceptance of a Reduced Repayment and Authorizing theActing City Manager to Execute a Deed of Reconveyance and thanked the CityTreasurer Brazil, City Attorney Vaughn, and Community Development DirectorFitzgerald for their work on this item.

Motion by Lewis, seconded by Silveira to approve the consent agenda as follows:Check Register for #140395 - #140649 in the Amount of $961,145.99; Minutes for theMarch 20, 2013 Adjourned City Council Meeting, March 20, 2013 City Council Meeting,March 20, 2013 Special City Council Meeting; City Council Resolution No. 5473 Authorizing the Chief of Police to Sign a Law Enforcement Services Contract with theCity of Hollister California for Law Enforcement Services During their Motorcycle Rallyon July 5, 2013 and July 6, 2013; City Council Resolution No. 5474 - Approving theExpansion of the Merced County Regional Enterprise Zone Boundaries; City CouncilResolution No. 5475 - Consenting to a Short Sale and Authorizing Acceptance of aReduced Repayment and Authorizing the Acting City Manager to Execute a Deed ofReconveyance; City Council Resolution No. 5476 - Amending the Fiscal Year 20122013 Budget by increasing the Appropriation for Expenditures in the Fire HomelandSecurity Grant Fund (248) by $49,000 to Purchase Medical Jackets and EmergencyGenerator; Street Closure Request from the Los Banos Chamber of Commerce to Hold

the Annual Downtown Spring Street Faire on Saturday, April 20,2013 from 5:00 a.m. 6:00 p.m. in the Downtown Area to Close 6th Street from H Street to the Alley JustBeyond K Street, i h and K Street, i h and J Street, i h and I Street, 5th and J Street, 5th

and I Street, and to Allow Vendors to be Set Up in the Center of Each Street; StreetClosure/Parade Request from the Merced County Spring Fair for the Following Streetsto be Closed from Monday, April 29, 2013 to Sunday, May 5, 2013: 3rd Street from EStreet to D Street, D Street from 3rd Street to North Street, North Street from C Street toD Street, F Street from 3rd Street to 5th Street, 4th Street from G Street to F Street and toAllow the May Day Parade on City Streets. The motion carried by the affirmative actionof all City Council Members present.

CONSIDERATION OF APPOINTMENT OF CITY MANAGER AND APPROVAL OFCITY MANAGER EMPLOYMENT AGREEMENT. Mayor VillaIta announced that theCity Council would like to appoint Steve Carrigan as City Manager, currently AssistantCity Manager for the City of Sanger, and asked City Attorney Vaughn to speak to thisitem.

City Attorney Vaughn spoke regarding the terms of the proposed employmentagreement, noting that there would be a three year term with no automatic extension.

Motion by Lewis, seconded by Faria to appoint Steve Carrigan as Los Banos CityManager and approve the City Manager Employment Agreement. The motion carried bythe following roll call vote: AYES: Faria, Lewis, Silveira, Stonegrove, Villalta; NOES:None; ABSENT: None.

Mayor Villalta announced that Mr. Carrigan will meet with City management staff andthen meet with the public during an open house about forty-five minutes prior to theCouncil Meeting on April 17, 2013.

Mayor Villalta announced at 7:34 p.m. that Council Member Faria was leaving the CityCouncil meeting due to feeling ill.

CONSIDERATION OF APPROVAL OF CITY COUNCIL RESOLUTION NO. 5477 AUTHORIZING STAFF TO PROCEED WITH PLACING AN AMENDMENT TOMEASURE P ON THE NOVEMBER BALLOT TO EXTEND MEASURE A FOR UP TOAN ADDITIONAL SEVEN (7) YEARS FOR THE REDIRECTION OF BUILDING ANDFACILITY FUNDS FOR PERSONNEL AND TO CONTRACT WITH THE LEWEDWARDS GROUP FOR CONSULTING SERVICES. Fire Chief Guintini presented thestaff report, noting that the Measure P Oversight Committee is in support of theextension of Measure A by 5-7 years.

City Attorney Vaughn spoke to the reason why the City is able to hire Lew EdwardsGroup without going through a formal Request for Proposal (RFP) process.

Mayor Villalta clarified that this would not be raising the sales tax, how this tax iscurrently in place, and how Measure A redirected Measure P funds to cover personnelcosts.

Acting City Manager/Police Chief Brizzee spoke of his support of the extension ofMeasure A and how the City is doing much better now than we were five years ago.

Council Member Silveira spoke of how this is not a new tax, how it allows us to continueusing the Measure P funding to cover salaries for Police and Fire employees, and howhe will work hard to start putting money back into the facility/building fund of Measure Pwhen the general fund is healthier.

Mayor Pro Tem Stonegrove spoke of being grateful that we live in a community thatunderstands and respects the needs of our Police and Fire Departments and reiteratedhow it is not a new tax.

Motion by Silveira, seconded by Stonegrove to adopt City Council Resolution No. 5477- Authorizing staff to Proceed with Placing an Amendment to Measure P on theNovember Ballot to Extend Measure A for up to an Additional Seven (7) Years for theRedirection of Building and Facility Funds for personnel and to Contract with the LewEdwards Group for Consulting Services. The motion carried by the affirmative action ofall City Council Members present, Faria absent.

CONSIDERATION OF APPROVAL OF CITY COUNCIL RESOLUTION NO. 5478 AWARDING CONTRACT FOR LEGAL ADVERTISING TO THE LOS BANOSENTERPRISE FOR FISCAL YEAR ENDING JUNE 30, 2014 AND AUTHORIZINGAND DIRECTING THE ACTING CITY MANAGER TO EXECUTE AGREEMENT.Acting City Manager/Chief of Police Brizzee presented the staff report.

Motion by Silveira seconded by Stonegrove to adopt City Council Resolution No. 5478Awarding Contract for Legal Advertising to the Los Banos Enterprise for Fiscal YearEnding June 30, 2014 and Authorizing and Directing the Acting City Manager toExecute Agreement. The motion carried by the affirmative action of all City CouncilMembers present, Faria absent.

ADVISEMENT OF PUBLIC NOTICES. (TWO REPORTS) Community DevelopmentDirector Fitzgerald reported that there will be two public hearings held by the PlanningCommission on April 10, 2013 at 7:00 p.m. at City Hall in the Council Chambers toconsider a Use Permit to allow the service of an automotive repair shop operated byRobert Rogers in the Industrial zoning district and to consider a Use Permit for the useof a Type 21 alcohol license to permit the off-sale of general alcohol for Dollar GeneralMarket.

CITY MANAGER REPORT. Thanked staff for all their help and support for the pastfour to five months while he has been Acting City Manager.

CITY COUNCIL MEMBER REPORTS.

TOM FARIA: Absent; left the City Council meeting at 7:34 p.m.

DEBORAH LEWIS: Encouraged the community to support the Chamber of Commercein their efforts to raise money for the fireworks show, reminded all about the drive thrudinner fund raiser for the 4th of July fireworks show, spoke of the upcoming Chamber ofCommerce spring street fair being held on April 20, 2013, thanked Acting CityManager/Police Chief Brizzee for the time he has spent answering her questions and forwhat he has done for the City, and encouraged voters to support the extension ofMeasure A when its put on the ballot in November.

SCOTT SILVEIRA: Reminded everyone about the Veteran's Administration Health &Resource Fair being held at Bethel Community Church on April 17,2013, the upcomingMay Day Fair being held May 1-5, 2013, how the Grand Marshalls are Supervisor JerryO'Banion Dolly O'Banion, encouraged all to support the fair, spoke regarding the LosBanos court house project moving forward and how construction on that project willbegin in early 2015, and expressed his sincere gratitude for Acting City Manager/Chiefof Police Brizzee for taking over City Manager duties while the City searched for a CityManager.

ELIZABETH STONEGROVE: Spoke of the 4th annual Hobbs Run on April 21, 2013 atPacheco State Park, how Mr. Dustin Hobbs was her history teacher in high school, andthanked Acting City Manager/Chief of Police Brizzee who has made the transition forthe City very seamless.

MAYOR MICHAEL VILLALTA: Spoke of how he attended the big Irish night event lastmonth at the Arts Center and thanked them for putting on their events, spoke regardingthe Veteran's Administration Health & Resource Fair being held at Bethel CommunityChurch on April 17, 2013, the 4th annual Hobbs Run on April 21, 2013 at Pacheco StatePark, the spring street fair being held on April 20, 2013, encouraged all to support theChamber of Commerce 4th of July drive thru dinner fundraiser, and requested to movethe May 1,2013 City Council meeting to 5:30 p.m. instead of 7:00 p.m. due to the MayDay Fair schedule.

ADJOURNMENT. The meeting was adjourned at the hour of 8:13 p.m.

APPROVED:

Michael Villalta, MayorATTEST:

Lucille L. Mallonee, City Clerk

LOS Banos

TO:

FROM:

DATE:

Agenda Staff Reg,QJj


Mark Fachin, P. E., Public Works Director/City Engineer1/)t}rk~t~r~kApril 17, 2013

SUBJECT: Agreement to Purchase Tax-Defaulted Property located at 1217 D Street,APN #025-134-005


Recommendation:That the City Council adopt the Resolution authorizing the Acting City Manager toexecute the agreement to purchase tax-defaulted property located at 1217 DStreet (APN #025-134-005) in Los Banos.

Discussion:The property located at 1217 D Street, APN #025-134-005, is the home of CityMunicipal Well 13. Well 13 was constructed, accepted, and put into operation duringthe 1999 calendar year. The property was recently discovered on the Merced CountyTax Default List. After an inquiry it was found that the property owner did not officiallydeed the property over to the City of Los Banos. Staff has made arrangements withMerced County to officially have the property deeded over to the City of Los Banos.The City is required to pay $2,131.41 in order to place the property formally into theCity's hands.

Well 13 is a drinking water well developed as a water source in order to construct theMeadowlands Subdivision Development. The property has been maintained and thewell operated by the Public Works Department since 1999.

Fiscal Impact:The property's municipal well was constructed with Restricted Funds from the WaterFund in 1999. It has been operated and maintained since 1999.

Public Works submitted a $500.00 payment to Merced County in order to remove theproperty from the Tax Default Listing. Public Works will also pay Merced County, withthe execution of the agreement, $2,131.41 in order to deed the property over to the Cityof Los Banos.

Reviewed by:

Acting City Manager/Chief of Police

Attachments:Property Location MapAgreementResolution

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AGREEMENT TO PURCHASE TAX-DEFAULTED PROPERTY

This Agreement is made this day of " 2013 by and

between the County of Merced, a political subdivision of the State of California ("COUNTY"),

and City of Los Banos ("PURCHASER"), in accordance with provisions of California law with

reference to the following facts:

RECITALS

A. The real property situated within said county, hereinafter set forth and described in

Exhibit "A" of this Agreement, is tax-defaulted and is subject to the power of sale by the tax

collector of said county for the nonpayment of taxes, pursuant to provisions oflaw.

AGREEMENT

In consideration ofthe mutual promises herein set forth, the parties mutually agree asfollows:

I. Payment for Notice. As provided by Section 3800 of the Revenue and Taxation Code,PURCHASER shall pay the cost of giving notice of this Agreement and the cost ofpublication or posting the Notice ofAgreement.

2. Purchase and Evidence of Title. Within twenty-one (21) days from the effective date ofthis Agreement, PURCHASER also agrees to pay a sum sufficient to redeem thedelinquent property taxes pursuant to Revenue and Taxation Code section 3793.I(a) or areduced price in accordance with section 3793.1 (b). The approval and notice process willdetermine the effective date of the sale and the final purchase price. PURCHASERagrees to pay the amount specified in Exhibit "B" for the properties described in Exhibit"A.": Payment shall be by cash or certified funds payable to the Merced County TaxCollector. Upon receipt of said sums from the Purchaser, the Merced County TaxCollector shall execute and record a deed conveying title to said property toPURCHASER and after recordation the deeds will be returned as indicated on thedocument to the purchaser by the County ClerklRecorder.

3. No Representation. COUNTY makes no representation concerning the condition of titleto the subject property. Additionally, COUNTY makes no representation concerning thephysical condition of the subject property and PURCHASER acknowledges that it is not

relying upon any statements or representations of the COUNTY concerning the subjectproperty and is purchasing the subject property in its "as is" condition.

4. Other Expenses. PURCHASER shall pay the other expenses in addition to the purchaseprice of the property, including but not limited to the cost ofproceeding to obtain a cleartitle to the property, and the expenses incurred in the payment, compromise or othermethod of removal ofany liens or adverse claims against the property.

5. Treated as A Single Transaction. COUNTY shall sell the parcels listed in Exhibit "A" asa single transaction to the PURCHASER in consideration of the receipt of the paymentsin paragraphs I through 3.

6. Redemption. If any of the parcels listed in Exhibit "A" are redeemed prior to theeffective date of this agreement, this Agreement shall be null and void as to that parcel.Notwithstanding the foregoing, the Agreement shall be binding and shall remain in fullforce and effect with respect to any remaining parcel(s).

7. Purchaser's Default. This Agreement shall become null and void and the right ofredemption restored upon the PURCHASER'S failure to comply with the terms andconditions of this Agreement prior to the tax deed recordation. The PURCHASER willbe required to reimburse the Tax Collector for the costs for providing notice, publication,and actual costs incurred for preparing and conducting the Chapter 8 Agreement Sale ifthese expenses have already been incurred.

8. Indemnitv. The PURCHASER shall indemnify COUNTY from and against any and allliability, loss, costs, damages, fees of attorneys, and other expenses which COUNTY maysustain or incur by reason of a challenge to the validity of the tax-default sale of theproperty described in Exhibit "A". Pursuant to Section 3809 of the California Revenueand Taxation Code, a proceeding based on alleged invalidity or irregularity of anyproceeding instituted can only be commenced within one year after the date of executionof the Tax Collector's deed. Therefore, PURCHASER may fmd it prudent to delay anyimprovement on the property for this one-year period.

9. Environmental Condition of Property. The parcels acquired pursuant to this Agreementmay contain hazardous wastes, toxic substances, or other substances regulated by federal,state, and local agencies. COUNTY in no way whatsoever assumes any responsibility,implied or otherwise, and makes no representations that the parcels are in compliancewith federal, state, or local laws governing such substances. COUNTY in no wayassumes any responsibility, implied or otherwise, for any costs or liability of any kindimposed upon or voluntarily assumed by PURCHASER or any other owner to remediate,clean up, or otherwise bring into compliance according to federal, state, or localenvironmental laws any parcel purchased.

Page 2

10. CERCLA. COUNTY and PURCHASER agree that, under 42 U.S.C. § 9601 (20)(D), theComprehensive Environmental Response, Compensation, and Liability Act ("CERCLA")expressly excludes local and state governments from clean up liability for properties theyacquire as a result of tax delinquencies. Notwithstanding this provision, PURCHASERshall defend, indemnify, and hold harmless COUNTY, its Board of Supervisors, officers,directors, agents, employees and volunteers from and against any and all demands,claims, actions, liabilities, losses, damages, and costs, including reasonable attorneys'fees, arising out of or resulting from the performance of this Agreement, regardless ofwhether caused in part by a party indemnified hereunder, including but not limited toallegations that COUNTY and/or COUNTY's officers, directors, agents, employees, orvolunteers are liable for costs or other charges related to the remediation, clean up, orother work necessary to bring any parcel purchased under this Agreement intocompliance with federal, state, or local environmental laws.

The undersigned hereby agree to the terms and conditions of this agreement and are dulyauthorized to sign for said agencies.

ATTEST: PURCHASER

By: _ By: _

(SEAL)

ATTEST: BOARD OF SUPERVISORS OFMERCED COUNTY

(name)By: ------,----------

Clerk ofthe Board of Supervisors

ChairmanBy: -,-,...-,-----------

By: _Deputy

(SEAL)

Pursuant to the provisions of Section 3795 of the Revenue and Taxation Code, the Controllerapproves the foregoing agreement this day of _

JOHN CHIANG,CALIFORNIA STATE CONTROLLER

By: _

Page 3

EXHIBIT A

Situated in the County of Merced, State of California:

Lot 4 in Block 6, all according to the map entitled "Map of Spadafore Subdivision",recorded July 6, 1948 in Book 11 of Maps at Page 48, Merced County Records.

APN: 025-134-005

PURCHASER

EXHIBIT "B"

City Council County First YearDescription Location District Supervisor's Delinquent Default Number Purchase Price

District

#025-134-005-000 1217 D Street, Los Banos, District 5 2005 DEF 060003546 $2131.41CA

Los Banos, CA 95635 SupervisorO'Banion

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS AUTHORIZINGEXECUTION OF AGREEMENT TO PURCHASETAX-DEFAULTED PROPERTY LOCATED AT12170 STREET IN LOS BANOS

WHEREAS, the Public Works Department operates and maintains a municipalwell (Well 13) located on the property of 1217 D Street, APN #025-134-005; and

WHEREAS, the Public Works Department requests the City Council to authorizethe Acting City Manager to enter into an agreement to purchase tax-defaulted propertyfrom the County of Merced; and

WHEREAS, said agreement will grant ownership of the property to the City ofLos Banos.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of LosBanos does hereby authorize the Acting City Manager to execute and enter into theagreement to purchase tax-defaulted property located at 1217 D Street, APN #025-134005, with the County of Merced for the amount of $2,131.41.

The foregoing Resolution was introduced at a regular meeting of the City Councilof the City of Los Banos held on the 17th day of April 2013, 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:

Michael Villalta, Mayor

ATTEST:


TO:

FROM:

DATE:

SUBJECT:

rosBanosAgenda StaffRe~


Mark Fachin, P.E., Public Works Director/City Engineer /f/1Cl/Lk- cqTuJAJ..~April 17, 2013

Construction Contract for Safe Routes to School ProjectSRTSL-5160 (020)


Recommendation:That the City Council adopt the Resolution awarding the Safe Routes to School (SRTS)Construction Project Contract to Viking General Contractors, Inc., and authorizing theActing City Manager to execute the Construction Contract Agreement in the amount of$100,945.92. Staff is requesting a 10% contingency of $10,095.00. The administrationof this contract, including the 10% contingency, is to be performed by the Public WorksDirector/City Engineer.

Discussion:The City of Los Banos has received funding from the Federal Safe Routes to SchoolProgram. The grant was originally applied for by the Los Banos Police Department in2006, and was awarded and programmed for construction during the 2012-13 FederalFiscal Year. The Public Works Department is facilitating the grant, providing the PreEngineering and Evaluation Portion of the Project, by completing and submitting theImprovement Plans and Bid Documents to the Caltrans Division of Local Assistance.

Caltrans has approved the documents as submitted and the Public Works Departmentreleased the Bid Documents on March 1, 2013.

The Public Works Department worked with the Los Banos Unified School District(LBUSD) and the Our Lady of Fatima Catholic School on the SRTS required Pre-JobEvaluation Phase. Public Works staff provided Student and Teacher Evaluation Sheets

to the participating schools in an effort to record how students migrate to and from theirhomes to school. The LBUSD initiated the surveys and returned them to Public Worksin November of 2012, which Public Works then forwarded to the Federal Safe Routes toSchool Program Manager for recording.

The SRTS Project will install fourteen (14) solar powered radar detection speed limitsigns in both directions at the following locations:

Los Banos Junior High - B Street, Place Road, and San Luis Street;

Lorena Falasco Elementary - Overland Avenue;

R.M. Miano Elementary - B Street;

Henry Miller Elementary - L Street; and

Our Lady of Fatima Catholic School - Center Avenue.

The project originally designated a lighted crosswalk to be installed on 7th Street at theintersection of K Street. However, current State Standards will not allow lightedcrosswalks at controlled intersections so that component of the project was removed.

The Public Works Department released the Safe Routes to School Bid Documents onMarch 1, 2013. The Bid opening for this project was held on March 22, 2013.

The Public Works Department, through the office of the City Clerk, received five (5) bidsfrom the following contractors:

1. Hobbs Construction, Inc. Fresno $108,000.00

2. Siemens West Sacramento $123,000.00

3. Tennyson Electric, Inc. Livermore $133,710.00

4. Collins Electrical Company, Inc. Modesto $103,000.00

5. Viking General Contractors, Inc. Atwater $100,945.92

Viking General Contractors, Inc. provided the lowest responsible bid for the project. Themajor contracted work involves installing fourteen (14) solar powered radar detectionspeed limit signs in various locations around Los Banos schools.

The time for completion is seventy-five (75) consecutive calendar days after the date ofNotice to Proceed Issuance.

Fiscal Impact:There is no final fiscal impact; the Federal Safe Routes to School Grant will reimburse100% of project design, evaluation, and construction. Initially, the City will pay for costsand submit invoices to Caltrans Division of Local Assistance for reimbursement.

Reviewed by:

Ao.~.~Gary Brizzee) :Acting City Manager/Chief of Police

Attachments:General Contractor Bid SheetConstruction Contract AgreementResolution

810 OPENING

7TH STREET CROSSWALK AND RADAR SPEED SIGNSFRIDAY, MARCH 29, 2013 @ 2:00 PM

1. Hobbs Construction. Inc. $ 108,000.00

2. Siemens $ 123,000.00

3. Tennyson Electric, Inc. $ 133,71000

4. Collins Electrical Company, Inc. $ 103,00000

5 Viking General Contractors, Inc. $ 100,945.92

~.

Signed: ·......·VCV\·\ ''\z '''.,(1..,,') ['........

Jana f'. Sousa, Assistant City ClerkDated: March 29, 2013

SECTION 5.01 AGREEMENT

This Agreement made and entered into by and between the City of Los Banos, hereinafter referred to as"City" and---------------------------a corporation under the laws of the State of ~

a partnership composed of -'

a joint venture composed of --'

an individual doing business as ~

hereinafter referred to as "Contractor." City and Contractor agree as follows:

5.01.01 - Scope of WorkThe Contractor shall furnish all labor, materials and equipment necessary to complete the Work as shownon the Plans. as specified in the Provisions, and in strict accordance with the conditions of the Contract.All incidental work not shown on the Plans or specified herein which is necessary to complete the Workshall be furnished and installed as part of this Contract at no additional cost to the City. The Work shall becomplete and ready for service as shown on the Plans and/or specified to the satisfaction of the City. TheContractor is advised to inspect the site to observe actual working conditions. The Work is generallydescribed as furnishing and installing fourteen (14) Solar Powered LED Speed Radar and FeedbackDisplay Signs and furnishing one (1) Data Collection Software.

Special Note: The 7'" Street Crosswalk named in the project title has been eliminated from the scope of work.

5.01.02 - Notice of AwardThe City Council of the City of Los Banos shall decide the resolution for the Award of Contract for the 7th

Street Crosswalk and Radar Speed Signs in a regUlar session of the council. The City shall have ten (10)consecutive calendar days to notify Contractor of Contract Award.

5.01.03 - Construction ScheduleAfter Notice of Award of the Contract and prior to start of any work, the Contractor shall submit itsproposed construction schedule to the City for approval. The construction schedule shall be in the form ofa tabulation. chart. or graph and shall be in sufficient detail to show chronological relationship of allactivities of the Work.

5.01.04 - Securities and BondsAfter Notice of Award of the Contract and prior to start of any work, the Contractor shall submit aPayment Security payable to the City of Los Banos for an amount not less than 100% of the ContractAward Price or a Payment Surety Bond executed by a surety authorized by the Insurance Commissionerto transact business of insurance in the State of California. After Notice of Award of the Contract and priorto start of any Work, the Contractor shall submit a Performance Security payable to the City of Los Banosfor an amount not less than 100% of the Contract Award Price or a Performance Surety Bond executedby a surety authorized by the Insurance Commissioner to transact business of insurance in the State ofCalifornia. Contractor shall submit both securities/bonds with construction schedule.

5.01.05 - Notice to ProceedThe City shall have fifteen (15) consecutive calendar days after receipt of the securities/bonds andconstruction schedule to notify Contractor with the Notice to Proceed.

5.01.06 - Commencement of WorkThe Work shall start within fifteen (15) consecutive calendar days from the date on the Notice to Proceedor from the actual first day Contractor starts Work.

Agreement - Page 1 of 2

7th Street Crosswalk and Radar Speed Signs, City of Los Banos Page 5·1

5.01.07 - Time for CompletionThe Work shall be completed within seventy-five (75) consecutive calendar days from date the Notice toProceed is received by Contractor or from the actual first day Contractor starts Work.

5.01.08 - Contract PriceCity will pay Contractor in accordance with the Total Bid Price shown on the Bid Form.

5.01.09 - PaymentsCity shall pay Contractor for completion of the Work in accordance with Section 1.03.13 and 1.03.14 ofthe Special Provisions, an amount in current funds equal to the sum of the Unit Price times quantitiescompleted. The filing of the Notice of Completion shall be preceded by acceptance of the Work madeonly by an action of the City Council in session.

5.01.10 - Accounting RecordsContractor shall check all equipment, materials, hardware, electronics, and labor entering into the Workand shall keep such full and detailed accounts as may be necessary for proper financial managementunder this Agreement, and the accounting methods shall be satisfactory to City. City shall be affordedaccess to all Contractors records, books, correspondence instructions, drawing, receipts, vouchers,memoranda, and similar data relating to the cost of the Work and Contractor's fee. Contractor shallpreserve all such documents for a period of three years after the final payment by City.

5.01.11 - Contract DocumentsThe Complete Contract Documents set forth herein include: the entire sections of Special Provisions,Federal Provisions, Technical Provisions, Bid Proposal, Agreement, Bonding, Plans, and anyAddendums.

This Agreement is executed by the City pursuant to an action of its City Council in session on

_____________, 20__, authorizing the same and Contractor has caused this

Agreement to be duly executed. The effective date will be the last date of execution by the parties.

Date

Date

(Seal if Corporation)

Authorized Representative of City

Title: _

Authorized Representative of Contractor

Title: _

(Attach AcknOWledgement for Authorized Representative of Contractor)

APPROVED:

(Attorney for City) Agreement - Page 2 of 2

Page 5 - 2

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS AUTHORIZING AWARD OFCONSTRUCTION CONTRACT FOR THEFEDERAL SAFE ROUTES TO SCHOOLPROJECT, SRTSL-5160 (020)

WHEREAS, the City of Los Banos Public Works Department receivedcompetitive bids on March 22, 2013 for the purpose of installing solar powered radardetection speed limit signs for schools within the City of Los Banos; and

WHEREAS, the Public Works Department has determined, after receivingcompetitive bids, that Viking General Contractors, Inc. provided the lowest responsiblebid in the amount of $100,945.92; and

WHEREAS, the Public Works Department requests the City Council authorize a10% contingency in the amount of $10,095.00; and

WHEREAS, the Public Works Department requests the City Council authorizethe Acting City Manager to execute the Construction Contract Agreement with VikingGeneral Contractors, Inc., and authorize the Public Works Director/City Engineer toadministrate the Construction Contract including the 10% contingency.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of LosBanos does hereby accept and award the construction bid from Viking GeneralContractors, Inc. in the amount of $100,945.92 with a 10% contingency in the amountof $10,095.00, and authorizes the Acting City Manager to execute the ConstructionContract Agreement, and authorizes the Public Works Director/City Engineer toadministrate the Construction Contract including the 10% contingency.

The foregoing Resolution was introduced at a regular meeting of the City Councilof the City of Los Banos held on the 17th day of April 2013, 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:

Michael VillaIta, Mayor

1

ATTEST:


2

TO:

FROM:

DATE:

LOS Banos! i ! i i r· i! ((

Agenda Staff Report

Mayor VillaIta & Council Members

paUla~gerald' AICP, Community Development Director

April 17, 2013

SUBJECT: Cottage Food Operations

TYPE OF REPORT:

Recommendation:

Public Hearing

City Council receive the staff report on the Cottage Food Operations (CFO) amendmentto the Zoning Ordinance (Sec 9-3 of the Los Banos Municipal Code), open the publichearing, take public comment, waive the first reading and introduce the ZoningOrdinance.

Discussion:

Assembly Bill 1616 (AB 1616) which relates to CFO's went into effect on January 1,2013.

A CFO is an enterprise at a private home where specific low-risk food products that donot require refrigeration are prepared or packaged for sale to consumers. Privatehomes, as defined by the State, are dwellings, including an apartment or other rentedspace, where the CFO operator resides. Customers may visit the residence topurchase the products and a CFO can have one full-time equivalent employee, notcounting family members.

Sales for a CFO may either be done as a "direct sale", which is a transaction between aCFO operator and a consumer where the food is purchased directly from the CFO or"indirect sale", which is interaction between a CFO and a third party retailer and

consumer. According to AB 1616 gross sales for a CFO cannot exceed $35,000annually in 2013, $45,000 annually in 2014 and $50,000 annually in 2015 and beyond.CFO's are permitted to produce: baked goods without cream, custard or meat fillings,such as breads, biscuits, churros, cookies, pastries and tortillas; candy, such as brittleand toffee, chocolate covered non perishable foods such as nuts, and dried fruit; driedpasta, dry baking mixes; fruit pies, fruit empanadas and fruit tamales; granola, cerealsand trail mixes; herb blends and dried mole paste; honey and sweet sorghum syrup;jams, jellies, preserves and fruit butter; nut mixes and nut butters; popcorn; vinegar andrnustard; roasted coffee and dried tea; waffle cones and pizzeles. CFO's mustcomplete a food processor course, instructed or approved, by the California Departmentof Public Health within three months of being registered or permitted and are alsorequired to receive approval from Merced County Environmental Health.

There are sanitary regulations that are applicable and are monitored by the CaliforniaDepartment of Public Health. Those regulations include: the packaging, preparationand handling cannot occur concurrent with other domestic activities; no infants, smallchildren or pets may be in the home kitchen during the preparation, packaging orhandling; equipment and utensils need to be clean and maintained in a good state ofrepair; all surfaces, equipment and utensils shall be washed, rinsed and sanitized priorto each use; food and equipment storage areas need to be maintained free of rodentsand insects and smoking is prohibited in areas used for packaging, preparation, storageand handling of food items during preparation.

The CFO law imposes certain responsibilities on local jurisdictions. With the new law, acity or county shall not prohibit a cottage food operation in any residential dwellings butinstead, shall do one of the following: 1) classify a CFO as a permitted use of residentialproperty for zoning purposes; 2) grant an administrative permit to use a residence asany CFO that complies with local ordinances; 3) require any CFO to apply for a usepermit to use a residence for its operation.

The only control the local government may have is placing reasonable requirementsrelating to spacing and concentration, traffic control, parking and noise control relatingto the home uses.

For the purposes of the Los Banos Municipal Code:1. CFO's would not be allowed as a use by right;2. Should not be approved administratively because there are too many issues

relating to compatibility and conditions that need to be in place;3. Cannot fall into the Home Occupation category as a use by right because

customers and employees are allowed;4. Cannot fall into the use permit category for Home Occupations as there will be

stock and commodity allowed on site.

The new legislation is bringing about the need for an Ordinance amendment to meetState requirements.

From a planning perspective, a CFO cannot be prohibited in residential zoning; thechallenge is to maintain the residential character of the neighborhoods and to regulatethe spacing, concentration, traffic control, parking and noise control so there is noadverse impact.

The Planning Commission held two public hearings on this matter, the first on March13th

, and the second on March 28th Staff was given direction to proceed with anOrdinance amendment that would provide a permit option whereby criteria is in placeand additional conditions relating to spacing/concentration, traffic control, parking andnoise control would be put in place by the Planning Commission. The permit would runfor a one year period and the Planning Commission would be the initial decision makingauthority; subsequent approvals would be given through the Community DevelopmentDepartment.

The proposed Ordinance establishes a definition and purpose, a permit requirement, apermit duration, application submittal requirements, criteria that would be applicable toall CFO's, conditions that can be applied to specific CFO's and suspension/revocationterms.

Applicants will utilize the standard City of Los Banos Uniform Application that is for allentitlements but the packet will also include the process, submittal requirements,established criteria and standard conditions. If modification of the standard conditions isdesired, the reason will need to be clearly stated and the applicant must also explainhow the use will not adversely affect the surrounding neighborhood.

Fees for the CFO's will be brought to the City Council at the second meeting in Mayasthey are approved by Resolution. The fees will be established as a cost recoverymechanism only so the General Fund will not be subsidizing expenses for individualprojects. The cost for each initial application will include: notification in the Los BanosEnterprise, public hearing notice mailers, copies, envelopes and staff time. The fee willbe a one-time fee and there will be no fee for subsequent renewals.

The proposed changes do not result in any direct or indirect physical impact that wouldlead to additional CEQA analysis.

Fiscal Impact:

Fees for the CFO permit process will be established by the City Council by Resolutionprior to the Ordinance being adopted to cover costs incurred.

Reviewed by:

Gary BIzActing City Manager/Chief of Police

Attachments:

1. Ordinance No. amending Sections of the Zoning Code of the Los BanosMunicipal Code relating to Cottage Food Operations amending Title 9, Chapter 3

2. Assembly Bill No. 1616

3. Cottage Food Operations Frequently Asked Questions -California Dept. of PublicHealth

4. Cottage Food Operation Approval Process &Requirements Informational Sheet

5. Public Hearing Notice

ORDINANCE NO. __

AN ORDINANCE OF THE CITY COUNCILOF THE CITY OF LOS BANOS AMENDINGSECTIONS OF THE ZONING CODE OF THELOS BANOS MUNICIPAL CODE RELATINGTO COTTAGE FOOD OPERATIONSAMENDING TITLE 9, CHAPTER 3

WHEREAS, Cottage Food Operations were approved by the State ofCalifornia with Assembly Bill 1616; and

WHEREAS, according to Assembly Bill 1616, cities need to permitCottage Food Operations within the residential districts; and

WHEREAS, the only control the local government may have is placingreasonable requirements relating to spacing and concentration, traffic control,parking and noise control relating to the home uses; and

WHEREAS, a definition for a Cottage Food Operation has been added tothe Los Banos Municipal Code, the use has been added as a use that ispermitted with a permit and an Article has been added related to the use; and

WHEREAS, a public hearing notice was advertised in the Los BanosEnterprise on March 1, 2013 as required by the Los Banos Municipal Code andGovernment Code Section 65091; and

WHEREAS, the Los Banos Planning Commission conducted a dulynoticed public hearing on said revisions on March 27, 2013 at which time allindividuals desiring to comment on the proposed ordinance were heard andrecommended the City Council approve an amendment related to Cottage FoodOperations; and

WHEREAS, The City Council conducted a duly noticed public hearing onthe Zoning Ordinance amendment for the City of Los Banos on atwhich time all individuals desiring to comment on the document were heard.

The City Council of the City of Los Banos does ordain as follows:

Section 1. Existing Section 9-3.201 of the Los Banos Municipal Code isamended to include the definition of a Cottage Food Operation and will read asfollows:

Sec. 9-3.201 Definitions.

"Cottage Food Operation" means an enterprise at a private home where specificlow-risk food products that do not require refrigeration are prepared or packagedfor sale to consumers, subject to the requirements of the State of California withcriteria and conditions related to spacing/concentration, parking, traffic and noisecontrol to maintain the residential nature of the neighborhoods.

Section 2. A new Article 39 is added to be numbered and titled and toread as follows:

Article 39. Cottage Food Operation

Section 3. A new Section 9-3.3901 is added to be numbered and titled and toread as follows:

Sec. 9-3.3901 Definition and purpose.

The definition and purpose of Cottage Food Operation shall be asdescribed in Section 9-3.201 of this chapter.


Sec. 9-3.3902 Permit required.No person may operate within the City without first having in his or her

possession a Cottage Food Operation permit issued by the City in accordancewith this chapter. No permit granted herein shall confer any vested right to anyperson or business for more than the permit period. All Cottage Food Operationsshall comply with the provisions of this chapter as they may be amendedhereafter. The operation of a Cottage Food Operation shall be permitted in allprivate homes subject to the criteria and conditions as established.


Sec. 9-3.3903 Permit period.All Cottage Food Operation permits issued by the City to operate in private

homes pursuant to Section 9-3.3903 shall be limited to a permit period of onecalendar year.


Sec. 9-3.3904 Application for permit to operate.A person desiring to run a Cottage Food Operation shall submit a written

application for a permit to operate in a form acceptable to and with all supportinginformation required by the Community Development Department. Suchapplication shall be accompanied by a nonrefundable, nontransferableapplication fee in an amount as established by resolution of the City Council.Any such permit shall be required to be renewed annually and a separatenonrefundable, nontransferable application fee shall be paid yearly for suchrenewal applications. The permit is to be on the premises at all times. Permits tooperate are nontransferable.

(a) Every Cottage Food Operation shall obtain a City of Los BanosBusiness License.

(b) As part of the permit to operate application, the applicant shall providethe following:

(1) All items as required on the Los Banos Uniform Application.(2) Two (2) pictures of the front exterior of the home, showing the

driveway and off street parking locations.(3) Two (2) pictures of the home kitchen, preparation and storage area for

the Cottage Food Operation.(4) A site plan, including sufficient parking for the employee and

customers.(5) Documents issued by an insurance company authorized to do

business in the State of California evidencing that the Cottage FoodOperator is insured under a liability insurance policy providingminimum coverage of One Million and No/100ths ($1,000,000) Dollarsfor injury or death arising due to the Cottage Food Operation.

(c) The following may constitute grounds for denial of a permit to operateor a renewal application:

(1) The proposed Cottage Food Operation does not comply with allapplicable laws including, but not limited to, the applicable building,zoning, housing, fire, safety and health regulations;

(2) The applicant has knowingly made a material misstatement in theapplication for a permit to operate;

(3) Failure to obtain registration from Merced County EnvironmentalHealth;

(4) Failure to complete California Department of Public Health (CDPH)approved food processing course;

(5) Failure to submit copy of Merced County Environmental Health permitregistration to the Community Development Department;

(6) Violation of criteria or conditions from previous Cottage FoodOperation permit.

(d) The Planning Commission shall be the decision making authority forany initial application of a permit to operate. The CommunityDevelopment Director or designee shall be the decision makingauthority for any renewal application of a permit to operate.


Sec. 9-3.3905 Criteria.The following criteria shall apply to cottage food operations in addition to

other conditions of approval as may be added through the permit process:(a) Each Cottage Food Operation shall conform to all State and County

laws, regulations and requirements.(b) Foods allowed for the Cottage Food Operation must be in accordance

with those listed as "approved" foods by the California Department ofPublic Health (CDPH).

(c) The operator of a Cottage Food Operation shall reside within theresidential unit used for such activity as their primary residence.

(d) No more than twenty-five (25) percent of the private dwelling may beutilized for the Cottage Food Operation.

(e) Only the home kitchen, meaning that which is primarily intended foruse by the residents of a home may be utilized for preparation ofCottage Food Operations.

(f) No physical conversions or alterations to the residential nature andcharacter of the residential unit where a Cottage Food Operation isbeing conducted shall be allowed in conjunction with the Cottage FoodOperation.

(g) No portion of any building other than the primary residence may beutilized for any aspect of the Cottage Food Operation.

(h) No Cottage Food Operation shall be located within 300 feet of anothersuch operation.

(i) All Cottage Food Operations shall conform to the requirements andrestrictions of the Los Banos Municipal Code Noise Control.

0) Only those individuals residing within the residential unit, as theirprimary residence, shall participate in a Cottage Food Operation,except for a full-time equivalent employee.

(k) Customers of any Cottage Food Operation shall be prohibited fromconsuming any products purchased from the Cottage Food Operationon the property where such product was produced.

(I) Where a Cottage Food Operation is conducted from a residential unitwithin a multi-family residential complex, the operator of the CottageFood Operation shall police, clean and maintain the property withregard to discarded items that may result from the Cottage FoodOperation.

(m)Violations of criteria and conditions of a Cottage Food Operation shallresult in the revocation of the Business License and permit issued bythe City of Los Banos.

(n) No signage or advertising on the site is allowed.(0) Gross sales cannot exceed those limits as established by the State of

California.(p) All persons who prepare or package cottage food products

shall complete a food processor course instructed by theCalifornia Department of Public Health within the next three (3)months. (Copies of each certificate issued are to be submitted tothe Community Development Department within three months ofpermit issuance.)


Sec. 9-3.3906 Conditions.

In addition to the criteria established in Section 9-3.3905, the PlanningCommission may add conditions of approval related to spacing/concentration,parking, traffic control and noise control with the initial permit to operate. Theconditions of approval established by the Planning Commission will be arequirement on all subsequent renewals and can only be modified by thePlanning Commission after a public hearing.


Sec. 9-3.3907 Suspension/revocation of permit to operate.(a) Violation and Noncompliance. The Community Development Director or

designee may refuse to renew a permit or may revoke or suspend anexisting permit on the grounds that the permit holder has failed to complywith the permit conditions or other requirements of this chapter. If asuspended permit lapses during the suspension period, a new applicationmust be filed at the end of the suspension period. In any such case, thepermit holder shall have the right to appeal in the time and manner setforth in this section.

(b) Revocation and Suspension of Permit to Operate when the City concludesthat grounds for denial, suspension, revocation or refusal to renew apermit to operate exist, he or she shall serve the applicant or permitholder, personally or by certified mail, with a notice of denial or notice ofintent to suspend, revoke or refuse to renew permit.

This notice shall state:(1) The reasons for the proposed action;(2) The effective date of the decision;(3) The right of the applicant or permit holder to a hearing; and(4) That the decision will be final if no hearing request is filed

within five (5) business days.(c) Hearings and Appeals. Hearing and appeals of the decision of the

Community Development Director or designee or the PlanningCommission shall be conducted in the same manner provided by Sections9-3.2326 through 9-3.2328.

Section 10. This Ordinance shall go into effect and be in full force and operationthirty (30) days after its final passage and adoption. The City Clerk shall certify tothe adoption of this Ordinance and cause the same to be posted and publishedonce within fifteen days after passage and adoption as may be required by law;or, in the alternative the City Clerk may cause to be pUblished a summary of thisOrdinance and a certified copy of the text of this Ordinance shall be posted in theOffice of the City Clerk five days prior to the date of adoption of this Ordinance;and, within fifteen days after adoption, the City Clerk shall cause to be published,the aforementioned summary and shall post a certified copy of this Ordinance,together with the vote for and against the same, in the Office of the City Clerk.

Introduced by Council Member _::-::-:_and seconded by Council Member___ on the __ day of , 201_.

Passed on the __ day of , 201_ by the following vote:

AYES:NOES:ABSENT:

APPROVED:

Michael VillaIta, MayorATIEST:


8in Text· A6-1616 Food safety: cottage food operlltlons. 4/8/137;49 AM

AB-1616 Food safety: cottage food operations. (2011-2012)

Assembly Bill No. 1616

CHAPTER 415

An act to add Chapter 6.1 (commencing with Section 51035) to Part 1 of Division1 of Title 5 of the Government Code, and to amend Sections 109947, 110050,110460,111955,113789,113851,114021, 114023, 114390, 114405, and114409 of, to add Sections 113758 and 114088 to, and to add Chapter 11.5

(commencing with Section 114365) to Part 7 of Division 104 of, the Health andSafety Code, relating to food safety.

[ Approved by Governor September 21,2012. Filed Secretary of StateSeptember 21,2012. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 1616, Gatto. Food safety; cottage food operations.

EXisting law, the Sherman Food, Drug, and Cosmetic Law (Sherman Law), requires the State Department ofPublic Health to regulate the manufacture, sale, labeling, and advertising activities related to food, drugs,devices, and cosmetics in conform~y with the Federal Food, Drug, and Cosmetic Act. The Sherman Law makesit unlawful to manufacture, sell, deliver, hold, or offer for sale any food that is misbranded. Food is misbrandedif its labeling does not conform to specified federal labeling requirements regarding nutmion, nutrient content orhealth claims, and food allergens. Violation of this law is a misdemeanor.

The existing California Retail Food Code provides for the regulation of health and sanitation standards for retaiifood facil~les, as defined, by the State Department of Public Health. Under eXisting law, local hea~h agenciesare primarily responsible for enforcing the California Retail Food Code. That law exempts private homes fromthe definition of a food facility, and prohibits food stored or prepared in a private home from being used oroffered for sale in a food facility. That law also requires food that is offered for human consumption to behonestly presented, as specified. A violation of these provisions is a misdemeanor.

This bill would include a cottage food operation, as defined, that is registered or has a perm~ within the privatehome exemption of the California Retail Food Code. The bill would also exclude a cottage food operation from

specified food processing establishment and Sherman Law requirements. This bill would require a cottage foodoperation to meet specified requirements relating to training, sanitation, preparation, labeling, and permissibletypes of sales and would subject a cottage food operation to inspections under specified circumstances. Thebill would require a food facility that serves a cottage food product without packaging or labeling to identify itas homemade. The bill would establish various zoning and permit requirements relating to cottage foodoperations.

This bill would incorporate additional changes in Section 113789 of the Hea~h and Safety Code, proposed byAB 2297, to be operative only if AB 2297 and this bill are both chaptered and become effective January 1,

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8W Text - A8-1516 Food $ilfety: cottage food operations.

2013, and this bill is chaptered iast.

By imposing duties on local officials and adding new crimes, this bili wouid create a state-mandated iocai

program.

The California Constitution requires the state to reimburse iocai agencies and school districts for certain costsmandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a

specified reaso n.

W~h regard to any other mandates, this bill would provide that, if the Commission on State Mandatesdetermines that the bili contains costs so mandated by the state, reimbursement for those costs shall bemade pursuant to the statutory provisions noted above.

Vote: majority Appropriation: no Fiscal Committee: yes local Program: yes

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. The legislature finds and declares all of the following:

(a) Small businesses have played an important role in helping slow economies recover and prosper as anengine of job creation. During the 1990s, small businesses created the majority of new jobs and now accountfor 65 percent of United States employment.

(b) California, and the United States as a whole, are facing growing obesity and obesity-related diseaseepidemics.

(1) Two-thirds of American adu~s and neariy one-third of children and teens are obese or overweight, placingthem at risk for developing chronic diseases such as diabetes, heart disease, and cancer.

(2) One in every nine California children, one in three teens, and over half of adu~s are already overweight or

obese. This epidemic affects virtually all Californians.

(3) These health conditions are preventable and curable through lifestyle choices that include consumption ofhealthy fresh foods.

(c) For decades, low-income and rural communities have faced limited opportunities to purchase healthyfoods. Often, without cars or convenient public transportation options, low-income residents In these areasmust rely for much of their shopping on expensive, fatty, processed foods sold at convenience and comerstores.

(d) There Is a growing movement in California to support community-based food production, sometimesreferred to as cottage food," artlsanal food," slow food," locally based food;' or urban agriculture"movements. These movements seek to connect food to local communities, small businesses, andenvironmental sustainabil~y.

(e) Increased opportunities for entrepreneur deveiopment through microenterprises can help to supplementhousehold incomes, prevent poverty and hunger, and strengthen local economies.

(f) At least 32 other states have passed laws that allow small business entrepreneurs to use their homekitchens to prepare, for sale, foods that are not potentially hazardous.

(g) Even some bake sales are currently illegal in California.

(h) It Is the intent of the leglsiature to enact a homemade food act specifically designed to help address thesechallenges and opportunities.

SEC. 2. Chapter 6.1 (commencing with Section 51035) is added to Part 1 of Division 1 of Title 5 of theGovernment Code, to read:

CHAPTER 6.1. Cottage Food Operations

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Bill Text· AB-1515 Food safety: oottage food operations.

51035. (a) A city, county, or city and county shall not prohibit a cottage food operation, as defined in Section113758 of the Heaith and Safety Code, in any residential dweilings, but shall do one of the following:

(1) Ciassify a cottage Food operation as a permitted use of residential property for zoning purposes.

(2) Grant a nondiscretionary permit to use a residence as any cottage food operation that complies with locaiordinances prescribing reasonable standards, restrictions, and requirements concerning spacing andconcentration, traffic control, parking, and noise control relating to those homes. Any noise standards shall beconsistent with local noise ordinances implementing the noise element of the general plan. The permit issuedpursuant to this paragraph shall be granted by the zoning administrator, or if there is no zoning administrator,by the person or persons designated by the planning agency to grant these permits, upon the certificationwithout a hearing.

(3) Require any cottage food operation to apply for a permit to use a residence for its operation. The zoningadministrator, or if there is no zoning administrator, the person or persons designated by the planning agencyto handle the use permits, shall review and decide the applications. The use permit shall be granted if thecottage food operation complies with local ordinances, if any, prescribing reasonable standards, restrictions,and reqUirements concerning the following factors: spacing and concentration, traffic control, parking, andnoise control relating to those homes. Any noise standards shall be consistent with local noise ordinancesimplementing the noise element of the general plan. The local government shall process any required permit aseconomically as possible. Fees charged for review shall not exceed the costs of the review and permit process.An applicant may request a verification of fees, and the city, county, Or city and county shall provide theapplicant with a written breakdown within 45 days of the request. The application form for cottage foodoperation permits shall include a statement of the applicant s right to request the written fee verification.

(b) In connection with any action taken pursuant to paragraph (2) or (3) of subdivision (a), a city, county, orcity and county shall do all of the following:

(1) Upon the request of an applicant, proVide a list of the permits and fees that are reqUired by the city,county, or city and county, including information about other permits that may be reqUired by otherdepartments in the city, county, or city and county, or by other public agencies. The city, county, or city andcounty shall, upon request of any applicant, also provide information about the anticipated length of time forreviewing and processing the permit application.

(2) Upon the request of an applicant, prOVide information on the breakdown of any individual fees charged inconnection with the issuance of the permit.

(3) If a deposit is reqUired to cover the cost of the permit, provide information to the applicant about theestimated final cost to the applicant of the permit, and procedures for receiving a refund from the portion ofthe deposit not used.

(c) Use of a residence for the purposes of a cottage food operation shall not constitute a change of occupancyfor purposes of the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of theHealth and Safety Code), or for purposes of local building and fire codes.

(d) Cottage food operations shall be considered residences for the purposes of the State Uniform BuildingStandards Code and local building and fire codes.

SEC. 3. Section 109947 of the Health and Safety Code is amended to read:

109947. Food processing facility" means any facility operated for the purposes of manufactUring, packing, orholding processed food. Food processing facility does not include a food facility as defined in Section 113785, acottage food operation that Is registered or has a permit pursuant to Section 114365, or any facilityexclusively storing, handling, or processing dried beans.


110050. The Food Safety Fund is hereby created as a special fund in the State Treasury. All moneys collected bythe department under subdivision (c) of Section 110466 and Sections 110470, 110471, 110485, 114365,

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Bill Text· AB-1616 Food safety: Cl:lttage food operations.

114365.6, 111130, and 113717, and under Article 7 (commencing with Section 110810) of Chapter 5 shallbe deposited in the fund, for use by the department, upon appropriation by the Legislature, for the purposes ofproviding funds necessary to carry out and implement the inspection provisions of this part relating to food,licensing, inspection, enforcement, and other provisions of Artic~ 12 (commencing with Section 111070)relating to water, the provisions relating to education and training in the prevention of microbial contaminationpursuant to Section 110485, and the registration provisions of Article 7 (commencing with Section 110810) ofChapter 5, and to carry out and implement the provisions of the Califomia Retail Food Code (Part 7(commencing with Section 113700) of Division 104).


110460. No person shall engage in the manufacture, packing, or holding of any processed food in this stateunless the person has a valid registration from the department, except those engaged exclusively in thestoring, handling, or processing of dried beans. The registration shall be valid for one calendar year from thedate of issue, unless it is revoked. The registration shall not be transferable. This section shall not apply to acottage food operation that is registered or has a permit pursuant to Section 114365.


111955. Food processing establishment," as used in this chapter, shall mean any room, building, or place orportion thereof, maintained, used, or operated for the purpose of commercially storing, packaging, making,cooking, mixing, processin9, bottling, canning, packing, slaughtering, or otherwise preparing or handling foodexcept restaurants. Food processing establishment" shall not include a cottage food operation that isregistered or has a permit pursuant to Section 114365.

SEC. 7. Section 113758 is added to the Health and Safety Code, to read:

113758. (a) Cottage food operation" means an enterprise that has not more than the amount in gross annualsales that is specified in this subdivision, is operated by a cottage food operator, and has not more than onefull-time equivalent cottage food employee, not Including a family member or household member of thecottage food operator, within the registered or permitted area of a private home where the cottage foodoperator resides and where cottage food products are prepared or packaged for direct, indirect, or direct andindirect sa~ to consumers pursuant to this part. In 2013, the enterprise shall not have more than thirty-fivethousand dollar ($35,000) in gross annual sales In the calendar year. In 2014, the enterprise shall not havemore than forty-five thousand dollars ($45,000) in gross annual sales in the ca~ndar year. Commencing in2015, and each subsequent year thereafter, the enterprise shall not have more than fifty thousand dollars($50,000) in gross annual sales in the calendar year. A cottage food operation includes both of the following:

(1) A Class A" cottage food operation, which is a cottage food operation that may engage only in direct salesof cottage food products from the cottage food operation or other direct sales venues described in paragraph(4) of subdivision (b).

(2) A Class B" cottage food operation, which is a cottage food operation that may engage in both direct salesand indirect sales of cottage food products from the cottage food operation, from direct sales venuesdescribed in paragraph (4) of subdivision (b), from offsite events, or from a third-party retail food facilitydescribed in paragraph (5) of subdivision (b).

(b) For purposes of this section, the folio wing definitions shall apply:

(1) Cottage food employee" means an individual, paid or voiunteer, who is involved in the preparation,packaging, handling, and storage of a cottage food product, or otherwise works for the cottage foodoperation. An employee does not include an immediate family member or household member of the cottagefood operator.

(2) Cottage food operator" means an individual who operates a cottage food operation in his or her privatehome and is the owner of the cottage food operation.

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Bill Text - A 6-1616 Food SAfety: mttage food operations.

(3) Cottage food products" means nonpotentlally hazardous foods, including foods that are described InSection 114365.5 and that are prepared for sale In the kitchen of a cottage food 0 peration.

(4) Direct sale" means a transaction between a cottage food operation operator and a consumer, where theconsumer purchases the cottage food product directly from the cottage food operation. Direct sales include,but are not limited to, transactions at holiday bazaars or other temporary events, such as bake sales or food

swaps, transactions at farm stands, certified farmers markets, or through community-supported agriculturesubscriptions, and transactions occurring In person In the cottage food operation.

(5) Indirect sale" means an interaction between a cottage food operation, a third-party retailer, and aconsumer, where the consumer purchases cottage food products made by the cottage food operation from athird-party retailerthat holds a valid permit issued pursuant to Section 114381. Indirect sales Include, but arenot limited to, sales made to retail shops or to retail food facilities where food may be immediately consumedon the premIses.

(6) Private home" means a dwelling, including an apartment or other leased space, where Individuals reside.

(7) Registered or permitted area" means the portion of a private home that contains the private home skitchen used for the preparation, packaging, storage, or handling of cottage food products and relatedingredients or equipment, or both, and attached rooms within the home that are used exclusively for storage.


113789. (a) Food faciity" meanS an operation that stores, prepares, packages, serves, vends, or otherwise

provides food for human consumption at the retail level, including, but not limited to, the following:

(1) An operation where food is consumed on or off the premises, regardless of whether there is a charge forthe food.

(2) Any place used in conjunction with the operations described in this subdivision, including, but not limited to,storage faciiities for food-related utensils, eqUipment, and materials.

(b) Food facility" includes permanent and nonpermanent food facilities, Including, but not limited to, thefoilowing:

(1) Public and private school cafeterias.

(2) Restricted food service facilities.

(3) Licensed health care facilities.

(4) Commissaries.

(5) Mobile food facilities.

(6) Mobile support units.

(7) Temporary food facilities.

(8) Vending machines.

(9) Certified farmers markets, for purposes of permitting and enforcement pursuant to Section 114370.

(10) Farm stands, for purposes of permitting and enforcement pursuant to Section 114375.

(c) Food facility" does not include any of the follOWing:

(1) A cooperative arrangement wherein no permanent facilities are used for storing or handling food.

(2) A private home, includin9 a cottage food operation that is registered or has a permit pursuant to Section114365.

(3) A church, private club, or other nonprofit association that gives or sells food to its members and guests,

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and not to the general public, at an event that occurs not more than three days In any 90-day period.

(4) A for-profit entity that gives or seils food at an event that occurs not more than three days in a 90-dayperiod for the benefit: of a nonprofit association, if the for-profit entity receives no monetary benefit, other thanthat resuiting from recognition from participating in an event.

(5) Premises set aside for wine tasting, as that term is used in Section 23356.1 of the Business andProfessions Code and in the regulations adopted pursuant to that section, that comply with Section 118375,

regardiess of whether there is a charge for the wine tasting, if no other beverage, except for bottles of wineand prepackaged nonpotentiaily hazardous beverages, is offered for sale for onsite consumption and no food,except for crackers, is served.

(6) Premises operated by a producer, selling or offering for saie only whoie produce grown by the producer, orsheil eggs, or both, provided the sales are conducted on premises controiled by the producer.

(7) A commercial food processing plant as defined in Section 111955.

(8) A child day care facility, as defined in Section 1596.750.

(9) A community care facility, as defined in Section 1502.

(10) A residential care facility for the elderly, as defined in Section 1569.2.

(11) A residential care facility for the chronicaily ill, which has the same meaning as a residential care facility, as

defined in Section 1568.01.

(12) Premises set aside by a beer manufacturer, as defined in Section 25000.2 of the Business andProfessions Code, that comply with Section 118375, for the purposes of beer tasting, regardless of whetherthere is a charge for the beer tasting, if no other beverage, except for beer and prepackaged nonpotentiallyhazandous beverages, is offered for sale for onsite consumption, and no food, except for crackers or pretzels,is served.

SEC. 8.5. Section 113789 of the Health and Safety Code is amended to read:

113789. (a) Food facility" means an operation that stores, prepares, packages, serves, vends, or otherwiseprovides food for human consumption at the retail level, including, but not limited to, the foilowing:

(1) An operation where food is consumed on or off the premises, regardless of whether there is a charge for

the food.

(2) Any place used in conjunction with the operations described in this subdivision, including, but not limited to,storage facilities for food-reiated utensils, equipment, and materials.

(b) Food facility" includes permanent and nonpermanent food facilities, including, but not limited to, thefoilowing:

(1) Public and private schooi cafeterias.

(2) Restricted food service facilities.

(3) Licensed health care facilities, except as provided in paragraph (13) of subdivision (c).

(4) Commissaries.

(5) Mobile food facilities.

(6) Mobile support units.

(7) Temporary food facilities.

(8) Vending machines.

(9) Certified farmers markets, for purposes of permitting and enforcement pursuant to Section 114370.

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8i1l Text - A 8-1616 Food safety: cottage food operations.

(10) Farm stands, for purposes of permitting and enforcement pursuant to Section 114375.

(c) Food facility" does not include any of the following:

(1) A cooperative arrangement wherein no permanent facilities are used for storing or handling food.

(2) A private home, including a cottage food operation that is registered or has a permit pursuant to Section

114365.

(3) A church, private club, or other nonprofit association that gives or sells food to its members and guests,and not to the general pUblic, at an event that occurs not more than three days in any 90-day period.

(4) A for-profit entity that gives or sells food at an event that occurs not more than three days in a 90-dayperiod for the benefit of a nonprofit association, Wthe for-profit entity receives no monetary benefit, other thanthat resulting from recognition from participating in an event.

(5) Premises set aside for wine tasting, as that term is used in Section 23356.1 of the Business andProfessions Code and in the regulations adopted pursuant to that section, that comply with Section 118375,regardless of whether there is a charge for the wine tasting, if no other beverage, except for bottles of wineand prepackaged nonpotentially hazardous beverages, is offered for sale for onsite consumption and no food,except for crackers, is served.

(6) Premises operated by a producer, selling or offering for sale only whole produce grown by the producer, orshell eggs, or both, provided the sales are conducted on premises controlled by the producer.

(7) A commercial food processing plant as defined in Section 111955.

(8) A child day care facility, as defined in Section 1596.750.

(9) A community care facility, as defined in Section 1502.

(10) A residential care facility forthe elderly, as defined in Section 1569.2.

(11) A residential care facility for the chronically ill, which has the same meaning as a residential care facility, asdefined in Section 1568.01.

(12) Premises set aside by a beer manufacturer, as defined in Section 25000.2 of the Business andProfessions Code, that comply with Section 118375, for the purposes of beer tasting, regardless of whetherthere is a charge for the beer tasting, if no other beverage, except for beer and prepackaged nonpotentiallyhazardous beverages, Is offered for sale for onsite consumption, and no food, except for crackers or pretzels,is served.

(13) (A) An intermediate care facility for the developmentally disabled, as defined in subdivisions (e), (h), and(m) of Section 1250, with a capacity of six beds or fewer.

(B) A facility described in subparagraph (A) shall report any foodborne illness or outbreak to the local healthdepartment and to the State Department of Public Health within 24 hours of the illness or outbreak.


113851. (a) Permit" means the document issued by the enforcement agency that authorizes a person tooperate a food facility or cottage food operation.

(b) Registration" shall have the same meaning as permit for purposes of implementation and enforcement ofthis part.


114021. (a) Food shall be obtained from sources that comply with all applicable iaws.

(b) Food stored or prepared in a private home shall not be used or offered for sale in a food facility, unless that

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food is prepared by a cottage food operation that is registered or has a permit pursuant to Section 114365.

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SEC. 11. Section 114023 of the Heaith and Safety Code is amended to read:

114023. Food in a hermeticaily seaied container shail be obtained from a food processing plant that is reguiatedby the food regu.,tory agency that has jurisdiction over the plant, or from a cottage food operation that

produces jams, jeliies, and preserves and that is registered or has a permit pursuant to Section 114365.

SEC. 12. Section 114088 is added to the Heaith and Safety Code, to read:

114088. A cottage food product, as defined in Secflon 113758, that is served by a food facli~y withoutpackaging or labeiing, as described in Section 114365, shali be identified to the consumer as homemade on themenu, menu board, or other location that wouid reasonably inform a consumer of ~s homemade status.

SEC. 13. Chapter 11.5 (commencing with Section 114365) is added to Part 7 of Division 104 of the Health

and Safety Code, to read:

CHAPTER 11.5. Cottage Food Operations

114365. (a) (1) (A) A Ciass A" cottage food operation shail not be open for business uniess it is registered withthe local enforcement agency and has submtted a compieted, self-certification checklist approved by the iocal

enforcement agency. The self-certification checklist shail verify that the cottage food operation conforms tothis chapter, Including the foilowing requirements:

(i) No cottage food preparation, packaging, or handling may occur in the home kitchen concurrent with anyother domestic activities, such as family meal preparation, dishwashing, clothes washing or ironing, k~chen

cleaning, or guest entertainment.

(Ii) No infants, smail children, or pets may be in the home kitchen during the preparation, packaging, orhandling of any cottage food products.

(iii) Kitchen equipment and utensils used to produce cottage food products shail be clean and maintained in agood state of repair.

(iv) Ail food contact surfaces, equipment, and utensils used for the preparation, packaging, or handling of anycottage food products shail be washed, rinsed, and sanitized before each use.

(v) Ail food preparation and food and equipment storage areas shail be maintained free of rodents and insects.

(vi) Smoking shail be prohibited in the portion of a private home used for the preparation, packaging, storage,or handling of cottage food products and reiated ingredients or equipment, or both, whiie cottage foodproducts are being prepared, packaged, stored, or handied.

(6) (I) The department shail post the requirements described in subparagraph (A) on its Internet Web site.

(iI) The iocal enforcement agency shail issue a registration number to a Class A" cottage food operation thatmeets the reqUirements of subparagraph (A).

(C) (I) Except as provided in (ii), a Class A" cottage food operation shail not be subject to initial or routineinspections.

(il) For purposes of determining compliance with this chapter, a representative of a local enforcement agencymay access, for inspection purposes, the registered area of a private home where a cottage food operation islocated only If the representative has, on the basis of a consumer complaint, reason to suspect that aduiteredor otherwise unsafe food has been produced by the cottage food operation or that the cottage food operationhas violated this chapter.

(iii) Access under this subparagraph is limited to the registered area and solely for the purpose of enforcing oradministering this chapter.

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(iv) A local enforcement agency may seek recovery from a Class A" cottage food operation of an amountthat does not exceed the local enforcement agency s reasonable costs of inspecting the Class A" cottagefood operation for compliance with this chapter, If the Class A" cottage food operation Is found to be inviolation of this chapter.

(2) (A) A Class B" cottage food operation shall not be open for business unless it obtains a permit from thelocal enforcement agency in a manner approved by the local enforcement agency to engage In the direct and

indirect sale of cottage food products.

(B) (i) A Class B" cottage food operation shall comply with the requirements described in clauses (i) to (vi),inclusive, of subparagraph (A) of paragraph (1) in addition to the other requirements of this chapter.

(ii) The local enforcement agency shall issue a permit number after an Initial inspection has determined that theproposed Class B" cottage food operation and its method of operation conform to this chapter.

(C) Except as provided in this subparagraph, a Class B" cottage food operation shall not be subject to morethan one inspection per year by the local enforcement agency.

(i) For purposes of determining compliance with this chapter, a representative of a local enforcement agency,for inspection purposes, may access the permitted area of a private home where a cottage food operation Islocated only If the representative has, on the basis of a consumer complaint, reason to suspect thatadulterated or otherwise unsafe food has been produced by the cottage food operation, or that the cottagefood operation has violated this chapter.

(ii) Access under this subparagraph is limited to the permitted area and solely for the purpose of enforcing oradministering this chapter.

(D) (i) A Class B" cottage food operaflon shall be authorized to engage in the indirect sales of cottage foodproducts within the county in which the Class B" cottage food operation Is permitted.

(ii) A county may agree to allow a Class B" cottage food operation permitted in another county to engage inthe indirect sales of cottage food products in the county.

(b) A registration or permit, once issued, is nontransferable. A registration or permit shall be valid only for theperson, location, type offood sales, and distribution activity specified by that registration or permit, and, unlesssuspended or revoked for cause, for the time period indicated.

114365.2. A cottage food operation that is registered or has a permit Issued pursuant to Section 114365 shallbe considered a restricted food service facility for purposes of, and subject to, Sections 113953.3, 114259.5,114285, and 114286. A cottage food operation that is registered or has a permit also shall be subject toSections 113967, 113973, 113980, 114259.5, 114405, 114407, 114409, 114411, and 114413, and to allof the following requirements:

(a) A person with a contagious illness shall refrain from work in the registered or permitted area of the cottagefood operation.

(b) A person involved in the preparation or packaging of cottage food products shall keep his or her hands andexposed portions of his or her arms clean and shall wash his or her hands before any food preparation orpackaging activity in a cottage food operation.

(c) Water used during the preparation of cottage food products shall meet the potable drinking waterstandards described in Section 113869, except that a cottage food operation shall not be required to have anindirect sewer connection. Water used dUring the preparation of cottage food products includes all of thefollowing:

(1) The washing, sanitizing, and drying of any equipment used in the preparation of a cottage food product.

(2) The washing, sanitizing, and drying of hands and arms.

(3) Water used as an ingredient.

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(d) A person who prepares or packages cottage food products shall complete a food processor courseinstructed by the department to protect the public health within three months of becoming registered. Thecourse shall not exceed four hours in length. The department shall work with the local enforcement agency toensure that cottage food operators are properiy notified of the location, date, and time of the classes offered.

(e) A cottage food operation shall properiy label all cottage food products in compliance with the Federal Food,

Drug, and Cosmetic Act (21 U.S.C. Sec. 343 et seq.). Additionally, to the extent permitted by federal law, thelabel shall include, but is not limited to, ail of the following:

(1) The words Made in a Home Kitchen" in 12-point type on the cottage food product s primary display panel.

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(2) The name commonly used for the food product or an adequately descriptive name.

(3) The name of the cottage food operation which produced the cottage food product.

(4) The registration or permit number of the Class A" or Class B" cottage food operation, respectiveiy, whichproduced the cottage food product and, in the case of a Class B" cottage food operation, the name of thecounty of the local enforcement agency that issued the permit number.

(5) The ingredients of the cottage food product, in descending order of predominance by weight, if the productcontains two or more ingredients.

114365.5. (a) The department shall adopt and post on its Internet Web site a list of not potentially hazardousfoods and their ethnic vartations that are approved for sale by a cottage food operation. A cottage foodproduct shall not be potentially hazardous food, as defined In Section 113871.

(b) This list of nonpotentially hazardous foods shall include, but not be limited to, all of the folloWing:

(1) Baked goods without cream, custard, or meat fillings, such as breads, biscuits, churros, cookies, pastries,and tortillas.

(2) Candy, such as brittle and toffee.

(3) Chocolate-covered nonperishable foods, such as nuts and dried fruit.

(4) Dried fruit.

(5) Dried pasta.

(6) Dry baking mixes.

(7) Fruit pies, fruit empanadas, and fruit tamales.

(8) Granola, cereals, and trail mixes.

(9) Herb blends and dried mole paste.

(10) Honey and sweet sorghum syrup.

(11) Jams, jellies, preserves, and fruit butter that comply with the standard described in Part 150 ofTitle 21 ofthe Code of Federal Regulations.

(12) Nut mixes and nut butters.

(13) Popcorn.

(14) Vinegar and mustard.

(15) Roasted coffee and dried tea.

(16) Waffle cones and pizelles.

(c) (1) The State Public Health Officer may add or delete food products to or from the fist described in

subdivision (b), which shall be known as the approved food products list. Notice of any change to the approved

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food products list shall be posted on the department s cottage food program Intemet Web s~e, to aiso beknown as the program Intemet Web site for purposes of this chapter. Any change to the approved foodproducts list shall become effective 30 days after the notice is posted. The notice shall state the reason for thechange, the authority for the change, and the nature of the change. The notice will provide an opportunity for

written comment by indicating the address to which to submit the comment and the deadline by which thecomment is required to be received by the department. The address to which the comment is to be subm~ted

may be an electronic s~e. The notice shall allow at least 20 calendar days for comments to be submitted. Thedepartment shall consider all comments submtted before the due date. The department may withdraw theproposed change at any time by notifICation on the program Intemet Web site or through notification by otherelectronic means. The approved food products list described in subdivision (b), and any updates to the list, shallnot be subject to the administrative rulemaking requirements of Chapter 3.5 (commencing with Section11340) of Part 1 of Division 3 of Title 2 of the Govemment Code.

(2) The State Public Hea~h Officer shall not remove any items from the approved food products list unless theState Public Hea~h Officer also posts information on the program Intemet Web site explaining the basis uponwhich the removed food ~em has been determined to be potentially hazardous.

114365.6. (a) The State Public Health Officer shall provide technical assistance, and develop, maintain, anddeliver commodity-specific training related to the safe processing and packaging of cottage food products tolocal enforcement agencies.

(b) Local enforcement agencies may collect a surcharge fee in addition to any permit fees collected for ClassB" cottage food operations. The surcharge fee shall not exceed the reasonable costs that the departmentincurs through the administration of the training described in subdivision (a) to protect the public health. Thesurcharge fees collected shall be transmitted to the department in a manner established by the department tobe depos~ed in the Food Safety Fund. The department shall use the surcharge fees only to develop and deliverthe training described in subdivision (a) to local enforcement agency personnel on an ongoing basis.


114390. (a) Enforcement officers shall enforce this part and all regulations adopted pursuant to this part.

(b) (1) For purposes of enforcement, any authorized enforcement officer may, during the facility s hours ofoperation and other reasonable times, enter, inspect, issue citations to, and secure any sample, photographs,or other evidence from a food facility, cottage food operation, or any facil~y suspected of being a food facilityor cottage food operation, or a vehicle transporting food to or from a retail food facility, when the vehicle isstationary at an agricultural inspection station, a border crossing, or at any food facil~y under the jurisdiction ofthe enforcement agency, or upon the request of an incident commander.

(2) If a food facility is operating under an HACCP plan, the enforcement offICer may, for the purpose ofdetermining compliance with the plan, secure as evidence any documents, or copies of documents, relating tothe facility s adherence to the HACep plan. Inspection may, for the purpose of determining compliance w~h thispart, include any record, file, paper, process, HACCP plan, invoice, or receipt bearing on whether food,equipment, or utensils are in violation of this part.

(c) Notwithstanding subdivision (a), an employee may refuse entry to an enforcement officer who is unable topresent official identification showing the enforcement officers picture and enforcement agency name. In theabsence of the identification card, a business card showing the enforcement agency s name plus a pictureidentification card such as a driver s license shall meet this requirement.

(d) It is a violation of this part for any person to refuse to permit entry or inspection, the taking of samples orother evidence, access to copy any record as authorized by this part, to conceal any samples or evidence,withhold evidence concerning them, or interfere with the performance of the duties of an enforcement officer,including making verbal or physicai threats or sexual or discriminatory harassment.

(e) A written report of the inspection shall be made and a copy shall be supplied or mailed to the owner,manager, or operator of the food facility.

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Bill Text· Ag-1616 Food safety: cottage food operations.


114405. (a) A perm~ may be suspended or revoked by a locai enforcement officer for a violation of this part.Any food facii~ or cottage food operation for which the perm~ has been suspended shall close and remainclosed until the permit has been reinstated. Any food facil~y or cottage food operation for which the permit hasbeen revoked shall close and remain closed until a new perm~ has been issued.

(b) Whenever a local enforcement officer finds that a food facility or cottage food operation is not incompliance with the requirements of this part, a wmten notice to comply shall be issued to the permltholder. Ifthe permitholder fails to comply, the local enforcement officer shall issue to the perm~holdera notice settingforth the acts or omissions with which the permlthoider is charged, and informing him or her of a right to ahearing, if requested, to show cause why the perm~ should not be suspended or revoked. A written requestfor a hearing shall be made by the perm~holderwithin 15 calendar days after receipt of the notice. A failure torequest a hearing within 15 calendar days after receipt of the notice shall be deemed a waiver of the right to ahearing. When circumstances warrant, the hearing officer may order a hearing at any reasonable time withinthis 15·day period to expedite the perm~ suspension or revocation process.

(c) The hearing shall be held w~hin 15 calendar days of the receipt of a request for a hearing. Upon writtenrequest of the perm~holder, the hearing offICer may postpone any hearing date, if circumstances warrant theaction.

SEC. 16. Section 114409 of the Health and Safety Code Is amended to read:

114409. (a) If any imminent health hazard Is found, unless the hazard is immediately corrected, an enforcementofficer may temporarily suspend the permit and order the food facil~y or cottage food operation immediatelyclosed.

(b) Whenever a perm~ is suspended as the result of an Imminent health hazard, the enforcement officer shallissue to the permitholder a notice setting forth the acts or omissions with which the perm~holder is charged,specifying the pertinent code section, and informing the permitholder of the right to a hearing.

(c) At any time w~hin 15 calendar days after service of a notice pursuant to subdivision (b), the perm~holder

may request in writing a hearing before a hearing officer to show cause why the perm~ suspension is notwarranted. The hearing shall be held within 15 calendar days of the receipt of a request for a hearing. A failureto request a hearing w~hin 15 calendar days shall be deemed a waiver of the right to a hearing.

SEC. 17. Section 8.5 of this bill incorporates amendments to Section 113789 of the Health and Safety Codeproposed by both this bill and Assembly Bill 2297. It shall only become operative if (1) both bills are enactedand become effective on or before January 1, 2013, (2) each bill amends Section 113789 of the Health andSafety Code, and (3) this bill is enacted after Assembly Bill 2297, in which case Section 8 of this bill shall notbecome operative.

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SEC. 18. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the CaliforniaConstitution for certain costs that may be incurred by a local agency or school district because, in that regard,this act creates a new crime or infractiOn, eliminates a crime or infraction, or changes the penalty for a crime

I or infraction, w~hin the meaning of Section 17556 of the Government Code, or changes the defin~ion of a Ii f I"

crime within the meaning 0 Section 6 of Article XIIJB of the California Const~ution.

IHowever, if the Commission on State Mandates determines that this act contains other costs mandated by ithe state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part iL..,~~~~:menCing w~:~~~tion 17500) of Division 4,0.Fnle 2 Of.~:~. Govern:~~t C~de~ ._,.J

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California Homemade Food ActFrequently Asked Questions

AB 1616 (Gatto) - Cottage Food Operations

When does the new Cottage Food Law go into effect? The new law became effectiveJanuary 1, 2013. The law requires the California Department of Public Health (CDPH)to carry out certain tasks associated with implementation, and imposes certainresponsibilities on local planning and environmental health jurisdictions. Furtherinformation regarding the status of implementation can be obtained from your localenvironmental health agency.

1. What is a cottage food operation (CFO)? A CFO is an enterprise at a privatehome where specific low-risk food products that do not require refrigeration areprepared or packaged for sale to consumers.

2. What is meant by a private home? "Private home" means a dwelling, includingan apartment or other rented space, where the CFO operator resides.

3. Are there limitations on the size of CFO sales?

$35,000 or less in gross sales annually in 2013$45,000 or less in gross sales annually in 2014$50,000 or less in gross sales annually in 2015 and beyond

4. Can a CFO have employees? A CFO can have one full-time equivalent employee(not counting family members or household members).

5. What cottage foods are CFOs permitted to produce? Only specific foods thatare defined as "non-potentially hazardous" are approved for preparation byCFOs. These are foods that do not require refrigeration to keep them safe frombacterial growth that could make people sick.

CDPH will establish and maintain a list of approved cottage food categories ontheir website. The list included in the new law includes:

Cottage Food Law Frequently Asked Questions Page 1

Baked goods without cream, custard, or meat fillings, such as breads,biscuits, churros, cookies, pastries, and tortillasCandy, such as brittle and toffeeChocolate-covered nonperishable foods, such as nuts and dried fruit

Dried fruitDried pastaDry baking mixesFruit pies, fruit empanadas, and fruit tamalesGranola, cereals, and trail mixesHerb blends and dried mole pasteHoney and sweet sorghum syrupJams, jellies, preserves, and fruit butter that comply with the standarddescribed in Part 150 of Title 21 of the Code of Federal Regulations.Nut mixes and nut buttersPopcornVinegar and mustardRoasted coffee and dried teaWaffle cones and pizzelles

6. What are the two classifications of CFO's?

"Class A" CFOs are only allowed to engage in "direct sale" of cottagefood.

"Class B" CFO's may engage in both "direct sale" and "indirect sale" ofcottage food.

7. What is meant by "direct sale" of cottage food? "Direct sale" means atransaction between a CFO operator and a consumer, where the consumerpurchases the cottage food product directly from the CFO. Direct sales include,but are not limited to, transactions at holiday bazaars or other temporaryevents, such as bake sales or food swaps, transactions at farm stands, certifiedfarmers' markets, or through community-supported agriculture subscriptions,and transactions occurring in person in the cottage food operation within thejurisdiction of the local environmental health agency in which the CFO ispermitted or registered.

8. What is meant by "indirect sale" of cottage food? "Indirect sale" means aninteraction between a CFO, a third-party retailer, and a consumer, where theconsumer purchases cottage food products made by the CFO from a third-partyretailer that holds a valid permit issued by the local environmental health agencyin their jurisdiction. Indirect sales include, but are not limited to, sales made toretail food facilities including markets, restaurants, bakeries, and delis, wherefood may be immediately consumed on the premises.


9. What are limitations on Internet sales and delivery of cottage food products? Acottage food operator may advertise as well accept orders and payments viaInternet or phone. However, a CFO must deliver (in person) to the customer. ACFO may not deliver any CFO products via US Mail, UPS, Fed Ex or using any otherthird-party delivery service. A cottage food operator may not introduce a CFOproduct into interstate commerce.

10. What are limitations on advertising of CFO products? It is unlawful for anyperson to disseminate any false advertising of any food. An advertisement isfalse if it is false or misleading in any particular. A cottage food product that isfound to be falsely advertised would be subject to enforcement action.

11. Do I need any special training or certification to make cottage foods? A personwho prepares or packages cottage food products must complete a foodprocessor course instructed by the CDPH within three months of beingregistered or permitted.

12. Does a CFO need a permit to operate?

Planning and zoning: All CFO's need to obtain approval from their localcity or county planning department. The Homemade Food Act givesplanning departments several options to consider, so planningdepartment requirements may vary between jurisdictions.Environmental Health: For "Class A" CFO's (direct sale only), registrationwith the local enforcement agency and submission of a completed "selfcertification checklist" approved by the local environmental healthagency. For "Class B" CFO's (either direct and indirect or indirect only), apermit from the local environmental health agency is required.Other requirements: Check on other state or local requirements thatmay be applicable, such as Sellers Permits through the Board ofEqualization, or Business Licenses through your city or county.

Registrations and permits are nontransferable between:1) Persons2) Locations3) Type of food sales [i.e., direct sales ("Class A") vs. indirect sales

("Class B")4) Type of distribution

13. How much will the permit or registration cost the CFO? Each local jurisdictionwill establish fees that are not to exceed the cost of prOViding the service.Additional fees may be charged for inspection and/or enforcement activities if


the cottage food operation is found to be in violation of California food safetylaws on cottage food operations.

14. Will my CFO registration/permit allow me to sell at other retail venues? Theremay be health permits required to sell at other locations, such as CertifiedFarmers' Markets, Swap Meets or community events. Please check with yourlocal environmental health department for additional permit requirements.

15. How often will a CFO be inspected?

"Class A" CFO kitchens and food storage areas (referenced in the law as the"registered or permitted area") are not subject to initial or routineinspections.

"Class B" CFO kitchens and food storage areas are inspected initially prior topermit issuance."Class A or B" (complaint inspections) - The local environmental healthagency may access, for inspection purposes, the registered or permitted areawhere a cottage food operation is located if the representative has, on thebasis of a consumer complaint, reason to suspect that adulterated orotherwise unsafe food has been produced by the cottage food operation orthat the cottage food operation has violated California food safety laws.

16. What are CFO operational requirements? All CFOs must comply with thefollowing:

No domestic activity in kitchen during cottage food preparationNo infants, small children, or pets in kitchen during cottage food preparationKitchen equipment and utensils kept clean and in good repairAll food contact surfaces and utensils washed, rinsed, and sanitized beforeeach useAll food preparation and storage areas free of rodents and insectsNo smoking in kitchen area during preparation or processing of cottage foodA person with a contagious illness shall refrain from preparing or packagingcottage food productsProper hand-washing shall be completed prior to any food preparation orpackaging

Water used in the preparation of cottage food products must be potableCottage food preparation activities include:o Washing, rinsing, and sanitizing of any equipment used in food

preparationo Washing and sanitizing hands and armso Water used as an ingredient of cottage food.


~$ut:d'icI1,ealth

17. What has to be on my cottage food label?

All cottage food products must be properly labeled in compliance with theFederal, Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 343 et seq.).The label must include:o The words "Made in a Home Kitchen" in 12-point type.o The name commonly used to describe the food product.o The name city, state and zip code of the cottage food operation which

produced the cottage food product. If the CFO is not listed in a currenttelephone directory then a street address must also be declared. (Acontact phone number or email address is optional but may be helpfulfor consumers to contact your business.

o The registration or permit number of the CFO which produced thecottage food product and, in the case of "Class B" CFOs, the name of thecounty where the permit was issued.

o The ingredients of the food product, in descending order ofpredominance by weight, if the product contains two or moreingredients.

o The net quantity (count, weight, or volume) of the food product, it mustbe stated in both English (pound) units and metric units (grams).

o A declaration on the label in plain language if the food contains any of theeight major food allergens such as milk, eggs, fish, shellfish, tree nuts,wheat, peanuts, and soybeans. There are two approved methodsprescribed by federal law for declaring the food sources of allergens inpackaged foods: 1) in a separate summary statement immediatelyfollowing or adjacent to the ingredient list, or 2) within the ingredient list.

o The use of the following eleven terms are considered nutrient contentclaims (nutritional value of a food): free, low, reduced, fewer, high, less,more, lean, extra lean, good source, and light. Specific requirementshave been established for the use of these terms. Please refer to theCottage Food Labeling Guideline for more details.

o A health claim is a statement or message on the label that describes therelationship between a food component and a disease or health-relatedcondition (e.g., sodium and hypertension, calcium and osteoporosis).Please refer to the Cottage Food Labeling Guideline for more details.

o If the label makes approved nutrient content claims or health claims, thelabel must contain a "Nutrition Facts" statement on the informationpanel.


o Labels must be legible and in English (accurately translated information inanother language may also be included on the label). Labels, wrappers,inks, adhesives, paper, and packaging materials that come into contactwith the cottage food product by touching the product or penetrating thepackaging must be food-grade (safe for food contact) and notcontaminate the food.

In a permitted retail food facility (such as a restaurant, market, or deli),cottage food products served without packaging or labeling shall beidentified to the customer as homemade on the menu, menu board or inanother easily accessible location that would reasonably inform theconsumer that the food or an ingredient in the food has been made in aprivate home.

18. What is my legal responsibility as a cottage food operator in ensuring that myfood product is safe? Cottage food operators and/or their employees shall notcommit any act that may cause contamination or adulteration of food.

This would include making foods that are not on the approved food list and ormaking foods under unsanitary conditions or with spoiled or rancid ingredients.

A cottage food operation that is not in compliance with the requirements of AB1616 would be subject to enforcement action taken by the local environmentalhealth agency and/or the California Department of Public Health.

19. What if I find out an ingredient I used has been recalled because it can makepeople sick or has been identified as the cause of food borne illness? Youshould notify your local environmental health agency or CDPH immediately anddo not distribute anymore product. You may need to notify your customers andrequest that they return or dispose of the products. For specific food recallinformation, you can contact CDPH at: (916) 650-6500 or email:[email protected].

20. What is my liability as a cottage food business operating out of my home? Youshould check with your homeowner insurance company or your landlord if youare operating out of a rental property. Many homeowner insurance policies willnot extend liability coverage to liabilities arising out of home-based businesses.


21. What other educational resources and guidelines are available to assist me inensuring I am making a safe food product? Please see the CDPH website orcontact your local environmental health agency for guidance and resourcedocuments or web links.

22. What can I do to ensure I am still meeting legal requirements if my cottagefood operation grows to exceed the gross annual sales limit and/or I decidewant to make another type of food product that is not on the approved foodlist? Please contact CDPH for registration and facility requirements for foodprocessors.

23. Where can I file a complaint about a cottage food operation or cottage foodproduct? You can file a complaint at the CDPH toll-free complaint line1-800-495-3232.


LOS BanosI Ii

COMMUNITY DEVELOPMENT DEPARTMENT

COTTAGE FOOD OPERAnON APPROVAL PROCESS & REQUIREMENTS

I. What is a Cottage Food Operationa. A Cottage Food Operation is an enterprise at a private home where low

risk food products are prepared or packaged for sale to consumers.Approved and authorized by Assembly Bill 1616.

II. Approval Processa. A complete application is submitted to the Community Development

Departmentb. The Community Development Department determines completeness

within ten (10) business daysc. Public hearing noticed at least ten (10) days prior to the Planning

Commission meeting• Newspaper• Mailed to property owner's within 300' radius of subject

propertyd. Planning Commission by resolution grants approval of the Cottage Food

Operation subject to criteria and conditions of approvale. Subsequent approvals are obtained administratively when the operator

applies for their annual business license

III. Criteria Applicable to all Cottage Food Operationsa. Each Cottage Food Operation shall conform to all State and County laws,

regulations and requirements.b. Foods allowed for the Cottage Food Operation must be in accordance with

those listed as "approved" foods by the California Department of PublicHealth (CDPH).

c. The operator of a Cottage Food Operation shall reside within theresidential unit used for such activity as their primary residence.

d. No more than twenty-five (25) percent of the private dwelling may beutilized for the Cottage Food Operation.

e. Only the home kitchen, meaning that which is primarily intended for useby the residents of a home may be utilized for preparation of Cottage FoodOperations.

f. No physical conversions or alterations to the residential nature andcharacter of the residential unit where a Cottage Food Operation is beingconducted shall be allowed in conjunction with the Cottage FoodOperation.

g. No portion of any building other than the primary residence may beutilized for any aspect of the Cottage Food Operation.

h. No Cottage Food Operation shall be located within 300 feet of anothersuch operation.

1. All Cottage Food Operations shall conform to the requirements andrestrictions of the Los Banos Municipal Code Noise Control.

J. Only those individuals residing within the residential unit, as their primaryresidence, shall participate in a Cottage Food Operation, except for a fulltime equivalent employee.

k. Customers of any Cottage Food Operation shall be prohibited fromconsuming any products purchased from the Cottage Food Operation onthe property where such product was produced.

I. Where a Cottage Food Operation is conducted from a residential unitwithin a multi-family residential complex, the operator of the CottageFood Operation shall police, clean and maintain the property with regardto discarded items that may result from the Cottage Food Operation.

m. Violations of criteria and conditions of a Cottage Food Operation shallresult in the revocation of the Business License and permit issued by theCity of Los Banos.

n. No signage or advertising on the site is allowed.o. Gross sales cannot exceed those limits as established by the State of

California.p. All persons who prepare or package cottage food products

shall complete a food processor course instructed by theCalifornia Department of Public Health within the next three (3)months. (Copies of each certificate issued are to be submitted tothe Community Development Department within three months of permitissuance).

IV. Standard Conditions(the Planning Commission has the ability to modify ifthere is a need and the residential character of the neighborhood will not bechanged-if modification from standard conditions is being sought, pleaseexplain the need on your operational statement)

a. No Cottage Food Operation shall have customers at the privatehome between the hours of 8 p.m. through 8 a.m.

b. Commercial delivery of items to the private home shall beprohibited between the hours of 8 p.m. through 8 a.m.

c. All Cottage Food Operations shall have a minimum of two (2) offstreet parking spaces reserved for an employee and customer.

d. No more than three (3) customers may visit the private residencedaily.

V. Submittal Requirementsa. All items as required on the Los Banos Uniform Application.b. Two (2) pictures of the front exterior of the home, showing the driveway

and off street parking locations.c. Two (2) pictures of the home kitchen, preparation and storage area for the

Cottage Food Operation.d. A site plan, including sufficient parking for the employee and customers (if

applicable).e. Documents issued by an insurance company authorized to do business in

the State of California evidencing that the Cottage Food Operator is insuredunder a liability insurance policy providing minimum coverage of OneMillion and NollOOths ($1,000,000) Dollars for injury or death arising dueto the Cottage Food Operation.

f. Fee as approved by the City Council by Resolution.

LOS Banos."". = F& $. .,.....


Date: April 5, 2013

Regarding: Notice of Public Hearing

Proposal: Los Banos Zoning Ordinance Amendment - Cottage Food Operations

NOTICE IS HEREBY GIVEN THAT a Public Hearing will be held by the Los Banos CityCouncil to consider revisions to the Los Banos Zoning Ordinance amending Title 9,Chapter 3, Section 9-3.201, and adding Article 38 to the Los Banos Municipal Coderelating to Cottage Food Operations.

The Los Banos Planning Commission conducted a public hearing on March 13, 2013and March 27, 2013 and recommended approval of said revisions to the Los Banos CityCouncil.

A PUBLIC HEARING on this matter will be held at the next scheduled meeting of theLos Banos City Council on Wednesday, April 17, 2013 at 7:00 p.m. in the CouncilChambers of Los Banos City Hall located at 520 "J" Street. Questions regarding theabove-referenced item may be directed to Paula Fitzgerald, AICP, CommunityDevelopment Director at City Hall or at (209) 827-7000, Ext.114.

Persons wishing to provide oral comments on the described proposal may do so at thismeeting or may provide written comments on this matter prior to the public meeting.Written comments may be sent by U.S. Mail or hand delievered to the City of Los BanosCity Hall at 520 "J" Street, Los Banos, California 93635. If no comments are receivedprior to or on the above date, it will be assumed that no comments are being offered.The public is also informed that should this matter, at some future date go to court, courttestimony is limited to only those issues raised at the hearings per Government CodeSection 65009.

THE CITY OF LOS BANOS

Stacy Souza ElmsAssistant Planner

rosBanos

TO:

FROM:

DATE:

Agenda Staff ReQQ.d;


Martha Brazil, City Treasurer/Accountant II~William A. Vaughn, City Attorney

April 17, 2013

SUBJECT: Approval of Deed in Lieu of Foreclosure203 N. Santa Rosa Street, Los Banos, California

TYPE OF REPORT:

Recommendation:

Non Consent Agenda

That the City Council adopt a Resolution approving a Deed in Lieu of ForeclosureAgreement to authorize the Mayor or the Acting City Manager to execute the Agreementand all necessary documents pertaining to the property located at 203 N. Santa RosaStreet, Los Banos, California.

Background:

The City of Los Banos has entered into a contractual relationship with the CaliforniaDepartment of Housing and Community Development ("HCD") to administer theNeighborhood Stabilization Program, an HCD-funded homebuyer program. Thehomebuyer program is designed to provide assistance to eligible homebuyers inpurchasing homes located within the Program's eligible area. The Program provides thisassistance in the form of "Gap" financing toward the purchase price and closing costs ofaffordable housing units that will be occupied by the homebuyers. The program mayalso provide for minor rehabilitation loans to ensure that purchased units comply withSection 8 Housing Quality Standards.

On November 23, 2009 the City's sub recipient Habitat for Humanity purchased theproperty located at 203 N. Santa Rosa Street, Los Banos, California, for $49,900.00.Thereafter, the property was rehabilitated by Habitat for Humanity and on December 10,2010 was sold to the current owner/borrower for $94,000.00, $5,000.00 of which was in

the form of sweat equity. The purchase of the property was financed by a Note andDeed of Trust originally held in the name of Habitat for Humanity. Pursuant to thedirection of HCD the Note and Deed of Trust was assigned to the City of Los Banos onAugust 15, 2012.

Discussion:

The current owner/borrower is in default under the terms of the Note and Deed of Trust.The current principal balance on the note is $82,231.67. City staff met with the currentowner/borrower in an attempt to assist the current owner/borrower in curing the defaultand bringing the payments current. After meeting with the current owner/borrower theCity was informed that the current owner/borrower had decided to move from the areafor personal reasons and intended on abandoning the property. It is City staff'sinformation and belief the property has been vacant for approximately 60 days.

City staff contacted a foreclosure service in anticipation of commencing a non judicialforeclosure on the property. The estimate of cost of a non judicial foreclosure is $2,850to $3,150.00 not including title insurance. The time involved in actually obtaining theproperty through foreclosure is approximately four to six months. Given the foregoingStaff contacted the current/owner borrower regarding the possibility of avoiding theforeclosure by acceptance of a Deed in Lieu of Foreclosure. The current ownerborrower has agreed to enter into such a transaction.

The City obtained a Preliminary title report on the property in anticipation of acceptanceof a Deed in Lieu of Foreclosure. The preliminary title report revealed a judgment lienon the property in the amount of $4,028.00. That lien would not be wiped out byacceptance of a Deed in Lieu of Foreclosure. It would not be prudent for the City toaccept the Deed in Lieu of Foreclosure without a release of the judgment lien.However, the judgment lien would be wiped out if the City proceeded with the nonjudicial foreclosure. The City Attorney has contacted the judgment creditor and theyhave agreed to accept a compromised amount of $1,000.00 to release their lien fromthe property. Their release would give the City clean title to the property for later resale.

After considering the time involved and the cost of a non judicial foreclosure it is Staff'sposition that paying the compromised amount to the judgment creditor and acceptingthe Deed in Lieu of Foreclosure is the best alternative for the City. One of the majorconsiderations is the property remaining vacant and not maintained for the period oftime it would take to obtain the property through a non judicial foreclosure.

Once the City has obtained title to the property it is anticipated that it will be sold andwill generate program income to be reinvested into the program.

Fiscal Impact:

Cost of escrow fees and title insurance is estimated to be $1,155.00 plus $1,000.00payment to judgment creditor for a total cost of $2,155.00. These costs will be paidfrom program funds and not the general fund.

Reviewed by:

tJ"GafiJJe:;XCting City Manager/Chief of Police

Attachments:

ResolutionAgreement

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS APPROVING DEED IN LIEU

OF FORECLOSURE AGREEMENT ANDAUTHORIZING THE ACCEPTANCE OF A DEED INLIEU OF FORECLOSURE AND AUTHORIZING THE

MAYOR OR ACTING CITY MANAGER TOEXECUTE THE AGREEMENT AND ALL

NECESSARY DOCUMENTS

[Neighborhood Stabilization Program]

WHEREAS, the City of Los Banos, has entered into a contractualrelationship with the California Department of Housing and CommunityDevelopment ("HCD") to administer the Neighborhood Stabilization Program, anHCD-funded homebuyer program;

WHEREAS, the homebuyer program is designed to provide assistance toeligible homebuyers in purchasing homes located within the Program's eligiblearea. The Program provides this assistance in the form of "Gap" financingtoward the purchase price and closing costs of affordable housing units that willbe occupied by the homebuyers;

WHEREAS, pursuant to the homebuyer program the City providedfinancial assistance through a loan to the buyer/owner of the property located at203 N. Santa Rosa Street, Los Banos, California;

WHEREAS, loan to the buyer/owner is evidenced by a promissory noteand deed of trust in the amount of $89,000.00, the loan is a no interest loan;

WHEREAS, buyer/owner is in default under the terms of the Note andDeed of Trust and the loan has been accelerated and the entire principal amountof is now due and owing in the amount of $82,231.67;

WHEREAS, as Senior Lien holder the City has made active collectionefforts and attempts have been made to assist the buyer/owner in bringing andkeeping the loan current;

WHEREAS, the buyer/owner has abandoned the residence and hasrequested that the parties resolve the default by buyer/owner's conveyance of theproperty to City, in lieu of foreclosure;

WHERAS, City staff has negotiated a compromised payment of $1 ,000.00to a junior lienholder in order to clear title to the property;

WHEREAS, the City Council has considered the remedies available to theCity and has determined that acceptance of a Deed in Lieu of Foreclosure is inthe best interests of the City; and

WHEREAS, the City Council has determined that it would not be costeffective for the City to protect its position by initiating a non judicial foreclosure.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of LosBanos as follows:

1. The matters set forth in the Recitals to this Resolution are true andcorrect statements.

2. The City Council of the City of Los Banos approves the Deed inLieu of Foreclosure Agreement as presented.

3. The City Council of the City of Los Banos authorizes the Mayor orthe Acting City Manager or his designee to execute all documents necessary toaccept the property pursuant to the terms of the above referenced Agreementincluding but not limited to a Certificate of Acceptance.

The foregoing Resolution was introduced at a regular meeting of the CityCouncil of the City of Los Banos held on the __ day of 2013, byCity Council Member , who moved its adoption, which motion wasduly seconded by City Council Member , and the Resolution wasadopted by the following vote:

AYES:NOES:ABSENT:

APPROVED:

Michael Vii/alta, MayorATTEST:


DEED IN LIEU OF FORECLOSURE AGREEMENT

THIS AGREEMENT ("Agreement") is made and entered into this __ day of April2013, by and between the City of Los Banos, a municipal corporation (hereinafter referred to as"Lender") and Manuela Fuentes, an unmarried woman (hereinafter referred to as "Borrower").

RECITALS

A. Borrower is currently indebted to Lender under a promissory note (the "Note") inthe original principal amount of Ninety Four Thousand Dollars ($94,000.00), as amended onAugust 15,2012 a copy of which is attached hereto as Exhibit A.

B. The Note is secured by a deed of trust (the "Deed of Trust") dated December 10,2010, and recorded on January 7, 2011 as Series No. 2011-000781 ofOfficial Records of MercedCounty, and encumbering the real property in the City of Los Banos, County of Merced,California (the "Real Property") described on Exhibit B attached hereto and by this referenceincorporated herein. A copy of the Deed of Trust is attached hereto as Exhibit C.

C. Borrower is in default under the terms of the Note and Deed of Trust. The Loanhas been accelerated and the entire principal amount of Loan together with all accrued interestthereon is now due and owing.

D. In order to avoid the financial hardship and damage to reputation that would resultfrom the Borrower's Default, Borrower has requested that the parties resolve Borrower's Defaultby Borrower's conveyance of the real estate legally described on Exhibit A to Lender, in lieu offoreclosure

E. Lender wishes to accept the conveyance of the Property pursuant to thisAgreement to avoid the necessity of litigation, foreclosure, the delays associated therewith, andto avoid the delays associated with Borrower's statutory redemption rights, if any, with respectto the Property, and Lender acknowledges that the provisions of this Agreement directly benefitLender in this regard

F. In consideration for Lender's agreement not to seek a deficiency judgment againstBorrower for the amount due and owing on the Note, Borrower has agreed to transfer, assign andconvey all of her interest in and to the Real Property to Lender.

NOW, THEREFORE, and in consideration of the foregoing the parties hereto agree asfollows:

AGREEMENT

1. Indebtedness on Note; Agreement Not to Seek Deficiency. Borrower herebyacknowledges that there is due and owing on the Note as of April 9, 2013 the amount of EightyTwo Thousand Two Hundred Thirty One Dollars and Sixty Seven Cents ($82,231.67). Lender

Page I

hereby agrees not to seek a deficiency judgment against Borrower for the amount due and owingon the Note.

Note: Possible Income Tax Considerations. The difference between theremaining amount of principal owed by the Borrower and the current marketvalue of the Property must be reported to the Internal Revenue Service (IRS) onForm 1099-C as debt forgiveness. In some cases, debt forgiveness could be taxedas income.

2. Deed in Lieu of Foreclosure. Concurrently with execution of this Agreement,Borrower shall execute and deliver to Lender a deed in lieu of foreclosure substantially in theform attached hereto as Exhibit D (the "Deed"), conveying to Lender all of Borrower's right,title, and interest in the Real Property free of any right of redemption.

3. Closing.

3.1 Time for Closing. This transaction shall be closed in the office of TransCountyTitle Company on or before April 24, 2013. Borrower and Lender shall deposit in escrow allinstruments, documents and monies necessary to complete the transaction in accordance withthis Agreement. As used herein, "closing" or "date of closing" means the date on which allappropriate documents are recorded and disbursements made.

3.2 Prorations; Closing Costs. Taxes and assessments for the current year, collectedrents, interest, prepaid premiums for insurance shall be assigned to Lender. Lender shall pay thepremium for the Binder of Title Insurance, the cost of documentary transfer tax, all escrow feesand recording costs. Lender shall pay the sum of $1,000.00 to be paid to Infinity Insurance ordesignee in exchange for a release of Abstract of Judgment as a lien against the property.

3.3 Possession. Lender shall be entitled to possession of the Real Property uponclosing. Borrower shall deposit with Lender the keys to the Property at or upon closing.

4. Conveyance of Title. On closing, Borrower shall execute and deliver to Lenderthe Deed conveying good and marketable title to the Real Property free and clear of any defectsor encumbrances except for the lien of real estate taxes for the current calendar year not yet dueand payable, the Deed of Trust and those encumbrances or defects approved in writing byLender.

5. Risk of Loss; Insurance. Risk of loss of or damage to the Real Property shall beborne by Borrower until the date of closing or until Lender takes possession of the Property,whichever date is earlier. Thereafter, Lender shall bear the risk of loss. In the event of materialloss of or damage to the Property prior to the date upon which Lender assumes the risk, Lender,at its option may either terminate this Agreement by giving notice of such termination toBorrower, or Lender may elect not to terminate this Agreement, in which case on closingBorrower shall assign to Lender the proceeds of any policy of insurance carried by or for thebenefit of Borrower covering any loss or damage to the Property occurring after the date hereofand prior to the closing date. Borrower will submit an insurance claim and use her best efforts to

Page 2

obtain insurance proceeds. On closing Borrower will pay to Lender, outside of escrow, the entireamount of insurance proceeds received prior to closing from such claim.

6. Borrower's Representations and Warranties. In addition to otherrepresentations herein, Borrower represents and warrants to Lender as of the date of closing that:

6.1 Borrower has full power and authority to execute this Agreement and perfonnBorrower's obligations hereunder;

6.2 Borrower is the owner of the Property and the Property is not subject to anyleases, tenancies or rights ofpersons in possession;

6.3 Borrower has good and marketable title to the Property;

6.4 Borrower agrees to perfonn any and all acts and execute any and all instnnnentswhich Lender may reasonably require or request in order to assist Lender in obtaining clear titleto the Property.

7. Survival of Warranties. The tenns, covenants, representations and warrantiescontained herein shall survive closing.

8. Attorney's Fees. In the event Lender refers this matter to its attorneys to enforceany tenn or condition of this Agreement or the documents contemplated herein, Borrower agreesto pay any and all costs, expenses and attorneys' fees incurred by Lender whether or not suit isinstituted, including costs and fees on appeal.

9. Notices. Any notice to Lender required under this Agreement shall be mailed to:

City of Los Banos520 J StreetLos Banos, CA 93635

Any notice to Borrower required under this Agreement shall be mailed to:

Manuela FuentesP.O. Box 124Dos Palos, CA 93620

Any such notice shall be deemed received upon actual receipt or after three days afterdeposit of such notice in the u.S. mails, addressed as above, first-class postage paid.

10. Default. Time is of the essence under this Agreement. Failure of Borrower tofully perfonn any of the terms and conditions of this Agreement shall constitute an event ofdefault. If any default occurs, Lender may, without limitation, enforce any existing rights andremedies provided under this Agreement, the Note, the Deed ofTrust, and the Deed.

Page 3

11. Waiver. Borrower expressly acknowledges and agrees that the Deed executedhereunder is not intended to constitute a mortgage or any other financing device, but rather is adeed absolute, transferring all of Borrower's right, title and interest in the Real Property toLender. Borrower waives and agrees that under no circumstances shall Borrower assert anyclaim against Lender asserting that the Deed is anything but a deed absolute or seeking toinvalidate the Deed.

12. Entire Agreement. This Agreement, the Note, the Deed of Trust, the Deed andthe other documents referenced herein comprise the entire agreement of the parties. No term orcondition of this Agreement may be modified in any way except in writing signed to by theparties hereto.

IN WITNESS WHEREOF, Lender and Borrower have executed this Agreementon the dates set forth below.

Date:MANUELA FUENTES

CITY OF LOS BANOS,A California municipal corporation

Date:by: GARY BRIZZEE, Acting City Manager

ATTEST:CITY CLERK

Lucille 1. Mallonee, City Clerk

APPROVED AS TO FORM:

William A. VaughnCity Attorney

[Signatures must be notarized]

Page 4

EXHIBIT A

NOTE

[To be Inserted by Staff]

Page 5

EXHIBITB

LEGAL DESCRIPTION

Lot 85, according to Map entitled "Fairview Park Unit No.2", in the City ofLos Banos, County of Merced, State of California, recorded May 15, 1963 inVol. 16 of Maps, Page 15, Merced County Records.

Assessor's Parcel No.: 082-114-011.

Page 6

EXHIBITC

DEED OF TRUST


Page 7

EXHIBITD

DEED IN LIEU OF FORECLOSURE


Page 8

RECORDING REQUESTED BY:City of Los Banos

AND WHEN RECORDED MAIL TO:City of Los BanosCity Clerk520 J StreetLos Banos, CA 93635

IIIII1

II1

:-:-=-==---=-=-==---==-==-=-=-=-=-- 1

MAIL TAX STATEMENTS TO: INot applicable 1

1

1

I__________________I (SPACE ABOVE TIllS LINE FOR RECORDER'S USE)'-- _

APN#082-114-0 IIDEED IN LIEU OF FORECLOSURE

THE UNDERSIGNED GRANTOR(S) DECLARE(S):

No Recording Fee Required: this document is exempt from fee pursuant to Sections 6103 and 27383 of the CaliforniaGovernment Code. No Transfer Tax Required: this deed is exempt from tax pursuant to Section 11922 of theCalifornia Revenue and Taxation Code.

The Grantee named herein is the foreclosing Beneficiary. The amount of the deht is $82,231.67. The amount paid byGrantee is $0.00.

FOR A VALUABLE CONSIDERATION, receipt ofwhich is hereby acknowledged,

MANUELA FUENTES, an unmarried woman

hereby GRANT(S) to

the CITY OF LOS BANOS, a municipal corporation

the following described real property in the City of Los Banos, County of Merced, State ofCalifornia:

Lot 85, according to Map entitled "Fairview Park Unit No.2", in the City of Los Banos, County ofMerced, State of California, recorded May 15, 1963 in Vol. 16 of Maps, Page 15, Merced CountyRecords.

Assessor's Parcel No.: 082-114-011.

Dated: _Manuela Fuentes

SEE ATTACHED PAGES FOR RECITAL FOR DEED IN LIEU OF FORECLOSURE AND CERTIFICATE OF ACCEPTANCE

CERTIFICATE OF ACCEPTANCE

This is to certify that the fee interest in real property conveyed under the foregoing Deed in Lieu of Foreclosure byManuela Fuentes is hereby accepted by the Acting City Manager of the City of Los Banos, on behalf of the City ofLos Banospursuant to action heretofore taken by the City Council and the Grantee consents to recordation thereof by its duly authorizedofficer.

THE CITY OF LOS BANOS,a municipal corporation

Dated:

ATTEST:

Lucille L. MalloneeCity Clerk

By:-cGOOary--oBo-n-;"'zz-e-e,-A-;-:ct::-in-g-C=ity~M-;an-a-g-er-

TransCounty Title Co."~'" Sur4u IS 7k 1)~"

925 West Pacheco Blvd.• Los Banos, CA 93635. (209) 826-0804 • Fax (209) 826-2706

CLIENT:

ATTN:

ORDER NUMBER:

BUYERJBORROWER:City ofLos Banos

PROPERTY:203 N. Santa Rosa StreetLos Banos, California

OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY

PRELIMINARY REPORT

13-OOI92-KLR

In response to the above referenced application for a policy of title insurance, TransCounty Title Company hereby reportsthat it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing theland and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of anydefect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to theprinted Schedules, Conditions and Stipulations of said Policy forms.

The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are setforth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is lessthan that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or theInsured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTAHomeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability forcertain coverages are also set forth in Exhibit A. Copies of the policy [onns should be read. They are available from theoffice which issued this report.

Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of thisreport carefully. The exceptions and exclusions are meant to provide you with notice of matters which are notcovered under the terms of the title insurance policy and should be carefully considered.

It is important to note that this preliminary report is not a written representation as to the condition of title and maynot list all liens, defects, and encumbrances affecting title to the land.

This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of apolicy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of apolicy of title insurance. a Binder or Commitment should be requested.

Escrow Officer: Karen L RobinsonDated as 01: 2/0112013, at 7:30 A.M.1B

Order No.: 13·00192·KLR

1. The form of policy of title insurance contemplated by this report is:

CLTA Standard Coverage Policy (1990)

2. The estate or interest in the land hereinafter described or referred to covered by this Report is:

A Fee

3. Title to said estate or interest at tbe date hereof is vested in:

Manuela Fuentes, an unmarried woman

4. The land referred to in this Report is situated in the 8tate of California, County of Merced, City of Los Banos,and is described as follows:

Lot 85 according to Map entitled "Fairfield Park Unit No.2", in the City of Los Banos, County of Merced, State ofCalifornia, recorded May 15, 1963 in Vol. 16 ofMaps, Page 15, Merced County Records.

Assessor's Parcel No.: 082·114·011

2

Order No.: 13-00192-KLR

AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONSAND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS:

I. GENERAL AND SPECIAL TAXES AND ASSESSMENTS for the fiscal year 2013-2014, a lien not yet due orpayable.

2. GENERAL AND SPECIAL TAXES AND ASSESSMENTS for the fiscal year 2012-2013.

First Installment:Penalty:Fee:Second Installment:Penalty:Fee:Costs:Land Value:Improvement Value:Personal Property:Exemption:Tax Rate Area:APN:

$355.12$0.00$0.00$355.12$0.00$0.00$0.00$13,000.00$47,000.00$0.00$0.00004-001082-114-011

Paid

Due

3. THE LIEN OF SUPPLEMENTAL TAXES, if any, assessed pursuant to Chapter 3.5 commencing with Section 75of the California Revenue and Taxation Code.

4. ANY LIEN that may be levied for sewer and/or water service,

City: Los Banos

5. AN EASEMENT shown on or dedicated by the map referred to in the legal description

For:Affects:

Public utility, and incidental purposesWesterly 6 feet

6. THE LAND LIES WITHIN THE BOUNDARIES of Los Banos Unified School District Community FacilitiesDistrict No. I, as disclosed by a map filed June 25, 2003 in Book 9 at Page 25 of Maps of Assessment andCommunity Facilities Districts.

7. A DEED OF TRUST to secure an original indebtedness of $94,000.00, and any other obligations secured thereby,recorded January 7,2011 as Series No. 2011-000781 of Official Records.

Dated:Trustor:Trustee:Beneficiary:

December 10, 2010Manuela Fuentes, an unmarried womanTransCounty Title Company, a California CorporationHabitat for Humanity Wesl<;ide Merced County, a California nonprofit publicbenefit corporation

ASSIGNMENT ofthe beneficial interest to City of Los Banos, a Municipal Corporation, recorded October 2, 2012as Series No. 2012-035140 of Official Records.

3

Order No.: 13-00192-KLR

8. THIS COMPANY REQUIRES, that Manuela Fuentes, the grantor named on the Deed in Lieu of Foreclosurewhich is to be recorded at the close of escrow, executes an Affidavit of Deed in Lieu of Foreclosure satisfactory tothis Company prior to the close of escrow.

9. THIS COMPANY REQUIRES, that the need on'rust shown herein as exception number 7, which need of Trustis the subject of a Deed in Lieu of Foreclosure, be reconveyed at the close of escrow.

JO. The following will appear as a numbered exception in the policy to be issued:

ANY CLAIM OR ALLEGATION to set aside the deed pursuant to I J U.S.c. §548 from Manuela Fuentes to Cityof Los Banos, recorded (at close of escrow) as Series No. (to be determined) of Official Records, in bankruptcyproceedings filed by or on behalfof Manuela Fuentes (grantor, foreclosed trustor, or grantor in deed in lieu offoreclosure) within two years from the date of deed in lieu of foreclosure.

II. AN OPTION in favor of Habitat for Humanity Westside Merced County, a California nonprofit public benefitcorporation as contained in or disclosed by a document recorded January 7,2011 as Series No. 201l-tl00782 ofOfficial Records.

Assignment of Covenant Agreement aDd Option to Purchase (NSP-Fuentes] recorded October 2, 2012 as SeriesNo. 2012-035139, Merced County Records, City of Los Banos, a Municipal Corporation as Assignee.

12. THE TERMS AND PROVISIONS contained in the document entitled "Covenant Agreement and Option toPurchase", executed by Manuela Fuentes and Habitat for Humanity Westside Merced County, a California nonprofitpublic benefit corporation, recorded January 7, 2011 as Series No. 2011-000782 of Official Records.

Reference is made to said document for full particulars.

Assignment of Covenant Agreement and Option to Purchase [NSP-Fuentes] recorded October 2, 2012 as SeriesNo. 2012-035139, Merced County Records, City of Los Banos, a Municipal Corporation as Assignee.

13. A CERTIFIED COPY OF A JUDGMENT or an abstract thereof; recorded May 8, 2009 as Series No. 2009023571 of Official Records.

Court:Case No.:Debtor:Creditor:Amount:

Superior Court of California, County of MercedC10850179Manuela FuentesInfinity Insurance Company$3,138.54, and any other amounts due thereunder

14. RIGHTS OF PARTIES IN POSSESSION of said land.

J5. THIS COMPANY REQUIRES, prior to the closing ofthe contemplated transaction, the following, if the form ofpolicy of title insurance contemplated by this Report, as shown in paragraph I herein, is other than a CLTA StandardCoverage Policy (1990), ALTA Owner's Policy Standard Coverage (06-17-06), or ALTA Loan Policy StandardCoverage (06-17-06):

a. An Owner's Affidavit, completed in its entirety, and executed by all owners of the Land issubmitted for review.

b. Other requirements which this Company may impose following its review of the material requiredherein and other infonnation which this Company may require.

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Order No.: 13-00I92-KLR

16. THIS PRELIMINARY REPORT/COMMITMENT was prepared based upon an application for a policy oftitleinsurance that identified land by street address or assessor's parcel number only. It is the responsibility of theapplicant to detennine whether the land referred to herein is in fact the land that is to be described in the policy orpolicies to be issued.

END OF ITEMS

NOTES

NOTE: Ifthis Preliminary Report is preparatory to the issuance of an ALTA Loan Policy of Title Insurance, wehave no knowledge of any fact which would preclude the issuance of said policy with CLTA EndorsementForm 100-06 (or CLTA Endorsement Form 100.2-06/ ALTA Endorsement Form 9-06), CLTAEndorsement Form 116-06 (or CLTA Endorsement Form 116.0 I-06 / ALTA Endorsement Form 22-06)and CLTA Endorsement Form 110.9-06 (or ALTA Endorsement Form 8. I -06) attached. When issued, theCLTA Endorsement Form 116-06 or 116.2-06, if applicable, will reference a Single Family Residence,known as

Property Address: 203 N. Santa Rosa StreetLos Banos, California

NOTE: According to the public records, there has been no conveyance of the land within a period of sixty monthsprior to the date ofthis report, except as follows:

Grant DeedRecorded:Series No.:

Grant DeedRecorded:Series No.:

January 7, 201 I2011-000780

January 25, 2010201 0-002672

Trustee's Deed Upon SaleRecorded: May 20, 2009Series No.: 2009-002672

NOTE: On or after July I, 1985, the County Recorder's Office will charge, in addition to the regular recordingcharges, an extra $20.00 recording fee, unless a document evidencing a change of ownership isaccompanied by a preliminary change of ownership report. In lieu of said report, signed by the transferee,the recorder will accept an affidavit that the transferee is not a resident of California. Title billings will beadjusted to reflect such additional fees when applicable.

5

03/19/2013 TUR 16.46 FAX IIlIVVl.(VV..L

.NIVlN8~tl8L£W GBOVPA LAW COi:ll»OBAT'IOiN

Trans county Title COll1punyAttJl: Karen L Robinson925 Wcst Pacheo BJLos Banos, CA 93635

Dear Karen;

March 19, 2013

lnfinity Vs Fuentes, el al.,Case Number C10850179File Nllll1ber: 07002204Escrow Number: 1.3..00192-KLR

134 W. Wilshire Ave.Fullerton, CA 92832(714) 533-8J.lO Telephone(714) 533-8828 Facsimilie

NLG@CalifSub,'o.com

This Jelter is to inrorm you that we have been authorized on behalf of our dieMInfinity InslIl'ance Company to accept $1000.00 in exchange for a release ol'lien as 1.0 theproperty Ilddress 203 N. Santa Rosil St, Los Banos, CA Only good IIntil4-19-13.

TO:

FROM:

DATE:

LOS BanosAgenda Staff Report


Lucy Mallonee, MMC~City Clerk/Administrative Services Director

April 17, 2013

SUBJECT: Economic Development Advisory Committee (EDAC) Vacancy Update

TYPE OF REPORT:

Recommendation:

Information only.

Discussion:

Non Consent Agenda

A Notice of Vacancy for the above committee was published twice in the Los BanosEnterprise and posted on the City's website; the application deadline was Friday, April5,2013 and no applications were received.

Per the City Resolution No. 5008, the City Clerk may extend the application deadline inthe event there are not two or more applicants than vacancies.

The application deadline has been extended to Friday, May 3, 2013; a Notice ofVacancy was posted on the City's website.

Staff will continue to update Council on the status of the vacancy.

Fiscal Impact:

None.

Reviewed by:

Gary Brizz eActing City Manager/Chief of Police

Attachments:

Notice of VacancyResolution No. 5008

LOS BanosNOTICE OF VACANCY ON CITY COMMISSIONS

Notice is hereby given that the City of Los Banos is now accepting applications fromcitizens 18 or older residing within the City limits of Los Banos interested in serving on aCity Commission.

Economic Development Advisorv CommitteeOne (1) Vacancy: One (1) Unexpired Term - Expiring December 31,2014

The various commissions meet once or twice a month and serve as advisory bodies tothe City Council and Administrative Officials on such actions as they deem necessary,proper or advisable for the proper administration of City functions. Board membersreceive no compensation for their time, although they may be requested to attendtraining workshops or seminars at City expense. If you are interested in volunteering toserve on any of the City Commissions and are a resident and qualified elector of theCity of Los Banos, please contact the City Clerk's Office at City Hall, 520 J Street, 8277000 ext 124 to request an application or access an application on the City's website:www.losbanos.org. The deadline for submitting applications to the City Clerk is Friday,May 3, 2013 before 5:00 p.m.

RESOLUTION NO. 5008

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS ESTABLISHING A POLICYFOR APPOINTMENTS TO CITY COMMISSIONSAND BOARDS

WHEREAS, the City Council adopted Ordinance No 1069 amending TItle 2,

Chapter 2 of the Los Banos MUnicipal Code relating to appointments to City

Commissions and Boards, and

WHEREAS, the City Council deSires to adopt a policy for appointments to City

Commissions and Boards

NOW, THEREFORE, BE IT RESOLVED that the Crty Council of the City of Los

Banos does hereby approve the attached policy entrtled "Policy and Procedures for

AppOintments to City Commissions And Boards" as set forth In forth In Exhibit A

attached hereto and Incorporated herein by thiS reference

The foregOing resolubon was Introduced at a regular meeting of the City Council

of the City of Los Banos held on the 2nd day of April 2008, by Council Member Fana,

who moved ItS adoption, which motion was duly seconded by Council Member Sousa,

and the Resolution IS hereby adopted by the follOWing vote

AYES

NOES

ABSENT

ATTEST

Council Members Brooks, Fana, Sousa, Vilialta, Mayor Jones

None

None

APPROVED

i~fJ.~Lucille L Mallonee, City Clerk

"EXHIBIT A"

POLICY AND PROCEDURES FOR APPOINTMENTS TOCITY COMMISSIONS AND BOARDS

PURPOSE To establish a more formal and inclUSive selection process for therecrUitment and appointment of the best qualified candIdates for CommissIoners to CityCommIssIons and Boards that allows for all commumty members the opportunity tobecome Involved In local government by serving on City Commissions and Boards

1 Local AppOintment LIst The CIty Clerk shall maintain and prOVIde the LocalAppOintment LIst as required by Government Code

a On or before December 31 of each year, the CIty Clerk shall prepare anappointments list of all regular and ongoing boards, commiSSions, and committeeswhich are appointed by the City Council ThIS list shall be known as the LocalAppOintments List The list shall contain the follOWing Information

(I) A list of all appoinTIve terms whIch Will expire dunng the next calendar year,With the name of the Incumbent appOintee, the date of appOintment, the date theterm expIres, and the necessary qualifications for the posluon

(II) A list of all boards, commiSSions, and committees whose members serve atthe pleasure of the legislative body, and the necessary qualifications for eachpoSItIon

b The Local Appointments List shall be made available to members of the public for areasonable fee whIch shall not exceed actual cost The City Clerk shall forward a copyof the list to the Merced County Public library Los Banos Branch

2 Notice of Vacancy At a regular City Council Meeting the City Clerk Will report to theCity Council approximately Sixty days prior to the date of expiration of a term of office of acommiSSIoner or board member At a regular City Council Meeting the City Clerk will alsoreport to the City Council any board or commission unscheduled vacancy for reasons otherthan the expiration of the term of offIce

3 Advertisement The City Clerk Will post notIce of the vacanCies and applicationdeadlines at the City Clerk's Office, the Merced County Public Library, the City webSite,and a newspaper of general Circulation Within the City For unscheduled vacanCIes, theCIty Clerk Will post notice of the vacancy not earlier than twenty days before or not laterthan twenty days after the vacancy occurs

4 Apphcahons

a A standard application form together With supplemental questions Will be proVidedby the CIty Clerk to persons Interested In appOintment to a vacant office

b Incumbent comm.ss.oners and board members seek.ng reappointment, as well asnew applicants, WIll complete the appllcat.on forms and retum them to the City Clerk bythe designated deadline In order to be considered for appointment However, a boardmember or commissioner who has been appointed to fill an unexpired term within theprevIous twelve months Will not be reqUired to complete and hie a new apphcallon

c Applicants are expected to have attended at least one meeting of the board orcommission for which they are seelong appointment

d Appllcallons Will only be accepted for specifiC vacancies Persons who have appliedfor prevIous vacancies Will be kept on an Interest list for a penod of two years by the C.tyClerk and be mailed notices of pending vacanCIes dunng that penod

e In the event there are not two or more applicants than vacanc.es the appllcallonfiling deadline may be extended by the City Clerk

5 Infemew Commlffee The Mayor and a selected Council Member and appropnateDepartment Head WIll rev.ew applications and interview applicants

a The Committee Will interview all of the applicants, including Incumbents, who havesubmitted applications by the deSignated deadline The Committee may conductinterviews by telephone A candIdate who IS unable to be InteMewed Will be droppedfrom consideration

6 Appomtments

a W.th the Input of the other Interview Committee members, the Mayor shallrecommend a candidate for appointment to the full City Council AppOintments aremade at regular or special meetings of the Crty Council

b If the City Councll.s unable to reach the necessary number of appointments forwhatever reason, the City Council may then proceed to seek additional applicants andcontinue the appointment process

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LOS Banossew • . • =


Date: April 12, 2013

Regarding: Notice of Public Hearing

Proposal: Use Permit #2013-06 - MG Santos Chevron

NOTICE IS HEREBY GIVEN THAT a Public Hearing will be held to consider aUse Permit to allow a variation of the sign standards set forth in the Los BanosMunicipal Code for MG Santos Chevron. The project site is located at 1009 E.Pacheco Blvd., more specifically identified as Assessor's Parcel Number: 026182-020.

A PUBLIC HEARING on this matter will be held at the next scheduled meeting ofthe Planning Commission on Wednesday, April 24, 2013 at 7:00 p.m. in theCouncil Chambers of Los Banos City Hall located at 520 "J" Street. Questionsregarding the above-referenced item may be directed to Paula Fitzgerald, AICP,Community Development Director at City Hall or at (209) 827-7000, Ext. 114.

Persons wishing to provide oral comments on the described proposal may do soat this meeting or may provide written comments on this matter prior to the publicmeeting. Written comments may be sent by U.S. Mail or hand delivered to theCity of Los Banos City Hall at 520 "J" Street, Los Banos, California 93635. If nocomments are received prior to or on the above date, it will be assumed that nocomments are being offered. The public is also informed that should this matter,at some future date go to court, testimony shall be limited to only those issuesraised at the public hearing or in written correspondence delivered to the Cityprior to, or at, the public hearing per Government Code Section 65009.

THE CITY OF LOS BANOS

~~~Assistant Planner

LOS Banos located at 203 n. santa rosa street, los banos, california [neighborhood stabilization...

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