City Council - Regular Meeting

Tuesday, May 5, 2026

The Patterson City Council approved updated user fees with a 1.5% CPI adjustment and authorized the issuance and sale of special tax bonds for the West Patterson Financing Authority Community Facilities Districts 2022-2 (Baldwin Ranch Infrastructure) and 2005-1 (West Patterson Business Park). The council also heard presentations on new Fire Explorer and Junior Police Academy programs.

About this meeting

Government Body
City Council
Meeting Type
City Council
Location
Patterson, CA
Meeting Date
May 5, 2026

Transcript

158 sections

0:00 – 1:48Speaker 6

Welcome to your Patterson City Council and West Patterson Financing Authority meeting on Tuesday, May 5, 2026. Report from closed session. Your City Council is returning from closed session and are providing the following report. The City Council is taking a recess from closed session and will reconvene closed session at the conclusion of the regular meeting. Your Council will now adjourn from closed session. Public Meeting Guidelines. The City of Patterson Council meetings are conducted in Patterson City Hall Council Chambers. As a courtesy of and technology permitting, members of the public may continue to participate virtually. However, the City cannot guarantee that the public's access to teleconference technology will be uninterrupted and technical difficulties may occur from time to time. The meeting will be televised and be available for the public viewing on Comcast Channel 7 on Wednesday, Friday, and Saturday at 12 p.m. or members of the public may watch on the internet with the BMO link available on the city's website. Before we start our regular session, those in the audience who wish to do so, please stand and bow your heads for invocation. Heavenly Father, we are here for you to guide us in the right direction with unity and give us the best direction we can to make the decisions for our community. As we hope for us to get to these very strong times that are coming and we can prevail in every direction we can. Thank you. Amen. Could those please stand up so we can call the meeting to order.

1:51Speaker 5

Please place the flag for the pledge of allegiance.

1:54 – 2:06Speaker 4

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

2:13Speaker 6

Statements of conflict. Are there any statements of conflict from the council members?

2:18 – 2:40Speaker 6

And your mayor pro tem has none. We'll be moving to our proclamation. We'll be going to the Portal Health District, our 50-year anniversary, and we will do professional municipal clerk weeks, and our proclamation, our National Public Works Week, during May 17, 2026, to May 23, 2026. If we could please join us up front, council. Thank you.

3:05Speaker 17

So today's proclamation is for Del Puerto Health Care District. If I could have you, the representatives for Del Puerto Health District, come up, please.

3:47Speaker 16

Nice to meet you.

3:48 – 4:03Speaker 2

We're going to serve the community. Yes.

4:10 – 7:24Speaker 17

Well, thank you guys so much for coming tonight. And the council just wants to thank you so much for everything that you guys are doing in the community. And today you will receive the proclamation. Whereas Del Puerto Health Care District, originally established at the Patterson Hospital District on July 1, 1946, was formed to provide hospital and health care services to the residents of Patterson and surrounding communities. And whereas the district has long recognized the importance of reliable emergency medical transportation and has worked to ensure that ambulance services remain available to the Patterson community. And whereas during the early 1970s, uncertainty surrounding private ambulance providers created concern regarding the continuation of dependable emergency transport services in Patterson. And whereas on May 1st, 1976, the district purchased the Patterson Ambulance Company to ensure that emergency medical transportation would remain available to the community. And whereas following this acquisition, the district established and operated what is now known as Patterson District Ambulance, providing continuous emergency medical responses and transport services to Patterson and west side of San Isidro County. And whereas even after all closure of Del Porto Hospital in 1998, the district made the critical decision to continue ambulance operations to ensure that residents would not lose access to local emergency medical services. And whereas for 50 years, the paramedics, emergency medical technicians, and staff of Patterson District Ambulance have provided... provided dedicated professional and compassionate service to the community 24 hours a day, seven days a week. And whereas Del Puerto Health Care District continues to play a vital role in protecting the health and safety of residents throughout Patterson and the west side of San Isidro County. Now, therefore, be it proclaimed that Mayor Pro Tem Carlos Roque, hereby recognizes and celebrates the 50th anniversary of Del Porto Healthcare District's acquisition of the Patterson Ambulance Company and extends its sincere appreciation to the district's board of directors, leadership, paramedics, emergency medical technicians, and staff for their decades of dedicated service to the community. The city of Patterson expresses its gratitude to the district's continued commitment to ensuring reliable emergency medical services and safeguarding the well-being of its residents. In witness thereof, I have here to set my hand and cause the official seal of the city of Patterson to be affixed this 5th of May, 2026. And this is from, of course, the mayor, Claus Al. Would anybody like to say anything?

7:26 – 8:01Speaker 2

So we'd like to thank everyone for the support that you offer us and provide to us throughout the years and through the community. What we do, we do out of the bottom of our hearts to be able to ensure that there's health care provision and access on the west side of Stanislaus County and the greater Patterson area. This couldn't be done without the leadership and participation, both of our paramedics and EMTs, and also the partnerships that we have throughout the area. And so thank you very much for this recognition. We appreciate it, and we continue to do 150 more years.

8:16Speaker 17

Thank you. Thank you.

8:38 – 8:57Speaker 6

All right, thank you. Well, next we'll have the proclamation for our 57th Annual Professional Municipal Clerk's Week, May 3rd, 2026 to May 9th, 2026. If we could have Araceli and Mayra up here. Thank you. And Raquel, sorry.

9:01 – 11:02Speaker 6

Whereas the Office of Professional Municipal Clerk a time-honored and vital part of local government exists throughout the world, and whereas the Office of the Professional Municipal Clerk is the oldest among public servants, and whereas the Office of the Professional Municipal Clerk provides a professional link between the citizens, the local government, bodies and agencies of the government, and other levels, and whereas the professional municipal clerk have pledged to ever be mindful of their neutrality and importantly rendering equal services to all. And whereas the professional municipal clerk serves as the information center on functions of local government and community. And whereas Professional municipal clerks continually strive to improve the administration of the affairs of the office and professional municipal clerks throughout participating in education programs, seminars, workshops, and annual meetings of their state. PROVINCIAL, COUNTY, AND INTERNATIONAL PROFESSIONALISM ORGANIZATIONS. AND WHEREAS, IN THE MOST APPROPRIATE THAT WE RECOGNIZE THE ACCOMPLISHMENTS OF THE OFFICE OF THE PROFESSIONAL MUNICIPAL CLERK, NOW THEREFORE, I, CARL ZOKE, AND MAYOR CLAUSEL FOR THE CITY OF PATTERSON DO RECOGNIZE THE WEEK OF MAY 3RD THROUGH MAY 9, 2026 AS A PROFESSIONAL MUNICIPAL CLERK WEEK AND FURTHER EXTEND APPRECIATION TO OUR PROFESSIONAL MUNICIPAL CLERKS. and to all professional municipal clerks for the vital services they perform and the exemplary dedication to the communities they represent. In witness of, here on to, send my hand and cause the official seal of the City of Paterson to be affixed on this fifth day of May, 2026.

11:02Speaker 5

Thank you, Elder Sally.

11:10 – 11:29Speaker 9

I would just like to take this opportunity to thank my team. They are the pillars of the city clerk's office, and their professionalism, their hard work and dedication is what keeps operations working efficiently every single day. So I truly appreciate both of them. Thank you.

11:49Speaker 10

Last but not least, can we get Public Works to step up? Come on.

11:55Speaker 9

Come on, Will.

12:15Speaker 5

We can break the tree on that.

12:40 – 15:38Speaker 10

I know, as I read. Picture first? Okay. Smile. So I'm assuming it's Xavier that's accepting, right? Or is he not? Wait, wait, wait. He's over there. Oh, he did sneak over here. Yeah, let me go this way. No, wait, where are you going? I'm over here. So let me see. As we are going to celebrate National Public Works Week, May 17th to May 26th, this proclamation goes out to public works, whereas public works professionals focus on infrastructure, facilities, and services that are of vital importance to sustainable and resilient communities and to the public health, high quality of life and well-being of the public in the city of Patterson. And whereas these infrastructures, facilities, and services could not be provided without the dedicated efforts and public works professionals who are engineers, managers, and employees at all levels of government in the private sector, who are responsible for rebuilding, improving, and protecting our nation's transportation, water supply, water treatment, and solid waste systems, public buildings, and other structures and facilities essential for our citizens, and whereas it is the public's interest for the citizens, civic leaders, and children of the City of Patterson to gain knowledge and maintain an ongoing interest and understanding of the importance public works programs in their respective communities, and whereas the year 2026 marks the 66th annual National Public Works Week sponsored by the American Public Works Association. Now, therefore, it be resolved that I Kendra Mora and Michael Clausell, Mayor of City of Patterson, do hereby designate the week of May 17th through 23rd, 2026, as National Public Works Week. I urge all citizens to join with respectives of the American Public Works Association and government agencies in activities, events, and ceremonies designed to pay tribute to our public works professionals, engineers, managers, and employees, and to recognize the substantial contributions they make to protecting our national health, safety, and advancing quality of life for all. In witness thereof, I hereby undo that my hand and cause the seal of the City of Patterson to be affixed the fifth day of May Public Works Week.

15:51Speaker 13

We're going to let Mike speak. Is this thing on?

15:56 – 16:17Speaker 13

I don't know if this is working properly or not, but okay. So I just want to step back. I look at every one of these men and women, and honestly, I'm honored to serve besides all of them. I see what they do day and night, honestly. And they serve this community like nobody understands, really. But I really appreciate every one of you. Thank you.

17:12 – 18:52Speaker 6

Items from the public. Any member of the audience desiring to address the council regarding a matter not on the agenda, please raise your hand or step to the podium. Or if you're using the Zoom app by pressing 9 on your cell phone at the time the item is announced by the Mayor Pro Temp. The public wishing to address the council on items that do not appear on the agenda may do so. However, council will take no action other than referring the item to staff for study or analysis and may be placed in the item for the future agenda. In order that the interested parties have an opportunity to speak, any person addressing the council will be limited to a maximum of three minutes unless the mayor pro tem grants a longer period of time. The city council requests everyone to be respectful, of all citizens' time and stay within the allotted time period. If, after extending the three-minute period, the mayor pro temp determines that the citizens will not complete their comments within reasonable time, the mayor pro temp will request their comments to be completed at a later time. The City Council fully supports the right of the public to comment freely during the public comments in period for the Brown Act. However, all comments will be made respectfully and in no way disruptive in nature. The Brown Act expressively authorizes legislative body to remove from a meeting those persons who willfully interrupt the proceedings. Independent of the Brown Act, California Penal Code Section 403 makes it a misdemeanor to willfully disturb a lawful meeting. Please state your name and the city for the record.

18:54 – 21:45Speaker 3

Good evening, Mayor, Council Members. My name is Dennis Boor, former city attorney at Redwood City, Pleasanton, San Mateo, and Brentwood. I've been an attorney for 40 years in municipal law. I'm here today because the city of Patterson has once again failed to comply with the Brown Act, a very basic requirement of municipal law. On March 17, 2026, the city council did not. did not meet its legal requirements when the mayor failed to properly report a closed session decision regarding an appeal of the BIA of Greater Valley against the city of Patterson. That action and each council member vote or abstention was required to be disclosed at that at that meeting on march 17th i submitted a cure and correct letter to the city clerk on april 24th requesting the city address this violation the cure and correct process gives us the city 30 days to address the violation This is not a minor issue. The BIA decision by Judge Sandu found various Brown Act violations. And here, there's another Brown Act violation on top of it. The lack of disclosure highlights the serious transparency issues involved with the city council. The city has spent $3 million on legal fees in the last couple years and right now the State Attorney General is about to sue you because you haven't enacted a housing element and also you're involved in an appeal that has very little likelihood based on 40 years of experience you're going to be liable for the other side's attorney fees and costs, even if they volunteer to waive their fees. It's about time that you look at hiring a city attorney to get rid of this $3 million albatross. Council Member Roka has requested three times now to have this on the agenda. It's not been on the agenda. There's a staff report, I understand, considering the city attorney and his role. And you should put it on the agenda for the general public to discuss it. $3 million is a lot of money. Thank you.

21:47 – 22:05Speaker 6

Thank you very much, Mr. Dennis. Is there anyone else in the city chambers who wishes to speak so? Madam Clerk, is there anyone online who wishes to make a public comment?

22:06 – 22:17Speaker 9

Just as a reminder, if you're joining us on Zoom and wish to make a comment, please use the raise hand feature. If you're calling in by phone, you may press star nine. We do have a comment. Yolanda, you can go ahead and unmute yourself.

22:21 – 24:12Speaker 19

Hi, everybody. Sorry I couldn't be there today. I'm going to bring this up to the bus transit authority or whatever as well and county, but I thought I would bring it up here as well. I noticed since my kids are taking the bus more often that the bus does not go all the way down to, like, say, grocery outlet area, which... It's kind of shocking to me because it seems like a lot of stores and jobs would be in that area. And then also there's a bus stop, I think it's a bus stop, across from, I guess it would be maybe Texas Burger area. And but it's across the street from it. I think that's the one that goes towards Modesto out of town. And it literally is like right on the edge of the road. And there's just like tan bark laid there. So I wasn't sure if there's like a bus stop going to be put in or not. I feel like there really should be like a sidewalk over that little ravine. I don't know what that's called. And then the bus stop should be pushed back more towards the oleanders just because it's like for safety reasons. And then I just wanted to echo what the gentleman before had said. It was surprising to me that it wasn't on the agenda today about Mayor Pro Tem's request for the third time to HAVE THAT ATTORNEY ISSUE BEYOND THE AGENDA. SO I WOULD LIKE TO SEE THAT ON THERE. THANK YOU SO MUCH. NEW SPEAKER THANK YOU.

24:12Speaker 10

NEW SPEAKER YOLANDA, JUST ON THE BUS STOPS, BOTH OF THOSE LOCATIONS ARE ALREADY IN DISCUSSIONS. WE'VE BEEN WORKING ON THAT WITH STAN R.T. SO WE SHOULD HAVE AN UPDATE SOON.

24:22Speaker 19

NEW SPEAKER PERFECT. THANK YOU.

24:32Speaker 9

And it doesn't look like we have any other comments, Mayor Pro Tem.

24:42 – 25:08Speaker 6

Well, seeing there's no additional comments, we'll be closing the public comment period. We'll be moving on to 6.1. We have the new Fire Explorer post-proposal presentation by Acting Fire Chief Hakala.

25:19 – 33:05Speaker 1

Good evening, Mayor, Council, City staff, and members of the public. Jeff Coel, your Acting Fire Chief. Just a quick proposal on your new Fire Explorer post that's on the consent calendar tonight. I just want to make sure everybody on the Council pretty much understood what we're after here. So I'll be quick so we can get on to the more important business. All right, basically we're going to go over the introduction of the Fire Explorer program, why Patterson needs a Fire Explorer post. Whoops, I've got to change the sign. program structure and activities, the benefits to the city and the fire department, and the implementation plan and the resources needed. Fire Explorer programs nationwide, sponsored by the Boy Scouts of America. So the liability completely falls on the Boy Scouts. We don't have to carry workers' comp on these kids. So it's a great partnership between the Boy Scouts of America and the city of Patterson, hopefully after tonight. Youth ages 14 to 21, right, they engage in safe, structured learning environment, hands-on training at our facilities, firefighting fundamentals, EMS response, and actual leadership roles. The skill development, participants gain life-saving skills and improved decision-making abilities through hands-on training, real-world scenarios. Leadership, right? Youth are provided with leadership opportunities, building self-confidence and enhancing their ability to work as part of a team. Career pathways, the program enables exploration of public safety careers. helping youth identify interest and reduce delinquency, and then community engagement, participants actively engage in community service, fostering civic responsibility, and increasing community awareness. Why we need an Explorer post? Community demographics and youth engagement. 30% of the Patterson residents are under 18. That should be enough for us to start this post right there. It can engage youth through mentorship and structured activities. Number one, community risk assessment. Number two, program launch. Establish the explorer posts and recruit local youth volunteers. Number three, workshop development. Design targeted fire safety workshops and training sessions for residents. Number four, outreach activities. Conduct public outreach events, demonstrations, and educational materials. Number five, safety awareness improvement. Monitor and measure increase in public safety awareness through surveys and feedback. And then number six, incident reduction. Track and report reductions in fire-related incidents as a result of ongoing education. Building future workplace or workforce pipelines, right, strengths, early skill development at their young age, hands-on experience, certifications for youth interested in the fire service careers, opportunities, right, improved recruitment, increased workforce diversity and stronger community engagement, the risk, potential resource constraints, retention, challenges, and variable and program participation, right? The needs, sustained funding, which is not a concern for us. We've been funding a program. We're just shifting our goals here. Mentorship in alignment with department hiring goals. Number one, outreach. We'll use school partnerships with Patterson Joint Unified School District and the high school there, community events and social media to attract motivated youth. The application part of it, we'll set clear expectations for interest, physical fitness, and commitment to improve retention. Three, screening. We'll run background screenings to ensure safety and reinforce trust with families and partners. And then onboarding, clear selection boost, participation 40% unclear versus 50% clear, and a plus 25% lift, keeping recruiting to sustain growth. The training curriculum and hands-on activities, right? First aid, CPR, you guys are very familiar with that. Firefighting techniques, hazardous materials awareness, and then simulated emergency responses. The mentorship and leadership development, this is probably one of the biggest advantages of this program. We put these kids in roles that they have never been in in their life at a young age. So not just as a fire explorer, but there's room for explorer chiefs, captains and such, where they're actually leading smaller groups of individuals throughout these training exercises, and it builds that confidence in those youth. So it's a great, great benefit to them. The benefits to the city and the fire department, right? This is a phrase from a community member from another city. The Explorer program has transformed our community's relationship with the fire department, fostering trust and pride among the residents. Improving emergency preparedness, right? It's going to be a plus 18% there. Increasing community preparedness scores after fire explore youth engagement programs. They participate in drills, public information campaigns, response assistance, strengthens citywide resilience. Some recruitment and retention impacts. This is going to be huge for us with our recent development of the firefighter training position. Explorer programs foster early engagement. They build a pipeline of motivated recruits with foundational skills. The potential to diversify the workforce and strengthen community ties through youth outreach. The benefits see up to 30% higher retention, reducing hiring costs, and improving team continuity. That's that local asset that we're grabbing out of high school and then building their confidence up, letting them test in that training position, and then they're working right here in the hometown they grew up in. The challenge is it requires sustained mentorship and resources to ensure long-term program success. I think we're going to have that covered. Some of the implementation plan and the resources needed, again, not too much. We're pretty much set up to rock and roll on July 1 as planned. Month one, 10% completion. Two is going to be recruitment. We already have, I think, about seven applications on file. Three, the training development, and then the official launch on July 1, and then the evaluation checkpoint. Budget requirements, equipment, stuff like that, like I said, we already have a budget associated with this for the last three or four years. It was for our intern program, and we're just shifting it over to the Explorer program, so we shouldn't have any extra costs there. Training materials, staffing for our folks to actually be there for the training nights, and then the funding and promotion, there's tons of ways for them to gain community fundraising advance and such. And then we'll obviously report back to you and give you a measurement of success and reporting through our monthly fire department reporting through council so you guys can see how it's all working and the success that we're going to have. Again, the Fire Support Post engages youth through structured learning and real-world exposure to public safety. This is not reading books. This is not watching videos. They're out there tying knots. They're throwing ladders. They're pulling hoes. They're putting their SCBAs on. They're learning every skill that we do every day. The education and leadership component, right, that's a huge benefit to this program. And then the community ties, they're out at every community event, just like the police explorers are. They're there. You'll see them in their light blue shirts. You can't miss them. And they're there just providing outreach to the community. And then a feature recruitment, right, creating a clear pathway, and the service supports long-term staffing and the next generation of responders here in the city of Patterson. And by any questions, that's all I got for you.

33:06Speaker 6

Is there any other council members who have any questions, concerns, or comments to this presentation?

33:11 – 33:28Speaker 17

Nope. Just a comment. I'm looking forward to the monthly reports. Yes. And just on, like, I know the time frames to launch it, but how long or what is the time that you're going to be taking with the explorers on a monthly basis?

33:28 – 33:47Speaker 1

So monthly they have two trainings a month. So we haven't picked out the nights yet, and there will be two hours each. So it's not a babysitting club. It's a very structured training environment. But, yeah, we're going to start with two a month, and then we'll see how that grows as the program grows.

33:48Speaker 17

Do you have a limit of how many explorers?

33:51 – 34:09Speaker 1

I believe we have no limit. It's just going to be basically our resources internally. So every one of us that engages with the explorers has to be an advisor. They go through online training and stuff like that. So we're going to start small. I think we're shooting for 20 to start with. And then we'll move forward after that, after we reassess.

34:12Speaker 6

I have one question. When was the last time we had this type of program here in our city? Okay.

34:18Speaker 1

Never. This is the first Explorer Post the City of Patterson has ever had. It was a combined effort with the West Anaslaus Fire Protection District, and this is going to be your Fire Explorer Post.

34:29 – 34:56Speaker 6

Amazing. Well, I really appreciate all the work that you put into it, and we look forward for our youth. Thank you very much. Are there any members in the public present in the chambers that would want to make any public comments, questions, or concerns on this presentation? Seeing none, is there anyone online?

34:56 – 35:09Speaker 9

Just as a reminder, if you're joining us on Zoom and wish to make a comment, please use the raise hand feature. If you're calling in by phone, you may press star nine. And we do have a comment. Kalia, you can go ahead and unmute yourself.

35:13 – 36:08Speaker 18

That's actually my daughter's. I'm logged into her Zoom right now. It's Candace Wyrock. I just have a comment. I am really impressed to see this program be brought forth tonight, especially... Considering Chief Hakla's like short time in this role as a community member, I've been really just impressed with his overall community commitment and how involved they've been as a community with his his. you know, newest role. So I'm just really impressed. And it's exciting to see something being brought forth for our youth, like you said, to kind of keep them out of trouble. It's not babysitting. It's super structured. And I love that. And I love that it gives, you know, maybe some some kids an opportunity to choose a different path in life. So as if my opinion counts for anything, I'm obviously highly in favor of this. So thank you.

36:10Speaker 6

Thank you, Candace.

36:15Speaker 9

There are no other comments, Mayor Pretem.

36:18 – 36:32Speaker 6

Thank you for your presentation. Now we will close Item 6.1. Moving on to Section 6.2, Patterson Police Services, Junior Police Academy. Presentation by Chief Hill.

36:40 – 40:27Speaker 5

Unfortunately, I have to follow up the real heroes. Thank you, Chief, for that. And thank you for everything that your staff does for us on a daily basis. I'm here to talk about our first ever Junior Police Academy that we're going to be offering here in the city of Patterson. So it's open for graduating eighth graders to graduating seniors. And we're targeting that to get into our Explorer program that we have that runs from the age of 16 to 21 and a half. We've put together this video that probably speaks better than I can on it, so let's go ahead and roll the tape there. All right. I just wanted to say hello again. This is Chief Casey Hill, the Patterson Police Services, bringing to you guys a great opportunity for our youth here in Patterson. And since I've come out here to Patterson, I really wanted to focus on our youth. And one way to reach our youth is through our brand new Junior Police Academy. As you may have seen our previous video, I just wanted to give a little bit more insight about what we can offer to our kids here in Patterson. So we're going to be doing a Junior Police Academy, which is July 6th through July 10th. We're going to host it here in Patterson in partnership with Patterson Joint Unified School District at Del Porto High School's campus. So it's going to be an amazing time. It's going to be a rare look for these kids into the day-to-day life of what it's like to do the most honorable position, in my opinion, of being a peace officer. and we can really introduce them to the patrol life level we have our traffic investigations out here we have our detectives and our criminal investigations we also have forensics in our cso program they get a rare look inside of what it's like to work day to day for the community and parents it's free of cost so our uh partnership with love patterson is helping us fund this as well And we're going to have a great time. So I would invite you to come down to our substation here at 301 South 1st Street to grab an application, fill it out, turn it in here at the counter. Or you can follow our hyperlink attached to this video and you can sign up online. Looking forward to hearing from you. Thank you again. So, again, I'd just like to reiterate that we're going to let everybody enjoy America's birthday, the July 4th, and then that Monday we're going to start July 6th, go through Friday, July 10th. We'll be out by noon every day. We are partnering with Patterson Joint Unified School District. We're going to get a lot of demonstrations and work with, again, like Chief Acola said, they're not sitting in a classroom by any means. We have SWAT demonstrations and bomb demonstrations. We have our drone team demonstrations. Our special vehicles operations unit that does the four-wheel drive and the boating patrols out of the reservoirs in the canyon here. Crime scenes and forensics. And then my favorites on Friday, it's all going to culminate to a physical training session as an over-40 workout, you know. So I'll get to lead the kids in an over 40 workout and have a good time. Our deadline, we're going to go run through the Apricot Fiesta. Our deadline is going to be June 6th. We can host up to 30 people. Applications are filling fast, right? So... We go strictly by the time that we receive the application, and there is a vetting process, right? We want to make sure that kids are taking care of things at schools and stuff like that, so we run their names and progress through their school district to make sure that they're eligible to join. But there are exceptions that can be made, like if your child does not fit within that age range, feel free to fill out an application, and I'll take a look at it personally and see if we can adopt them into the program. So thank you, everybody, for the opportunity, and I'm looking forward to the Junior Police Academy. Any questions from the council? Yes.

40:27Speaker 11

Is it just for Patterson Unified School District or can Sacred Heart also participate? Oh, no, no, no.

40:32 – 40:45Speaker 5

It's for any youth in Patterson or the sphere of influence within Patterson. Because Patterson being on the west side, you know, if somebody is living outside of the city limits, obviously we would like to adopt them too. So anybody. Okay.

40:45Speaker 11

I just want to check because of the transcripts and everything. That's why I was like.

40:48 – 41:18Speaker 6

Just fine. I just wanted to say thank you, appreciate that presentation, and we are looking forward. This could do a tremendous impact on our youth. I wish I had this growing up. Great work. Thank you so much. Madam Clerk. Now is anybody in the public who wishes to make any public comment?

41:33 – 43:47Speaker 16

I come here to complain. My name is Rich Halle. I live on 195 Sycamore Avenue where you guys built a new well, which is a nice well. Everything is well. I have a few complaints that they kind of abandoned me out there because we don't have some of the fence-filled completed, and there's some other issues there, and nobody seems to want to care. They used my yard for three years, and that was good, and I was happy to let them use it. And I would just to see some response, somebody come around and talk to me about some of these issues that we could handle. They're simple, but we need to get them done. I want my done, my driveway fixed. I need some work done out there. And so I need some help. And so it's been a good project. And the contracting companies and everybody was good. I mean, I'm not complaining about that. I'm just trying to finish up. And there's things out there that's not been done. Got holes in my fence. I got a contractor cement truck running into my fence and bent my fence. I can't get any response off of that with the builders, so I don't know who we need to talk to anymore, so I need to find out, or you can get a hold of me, or as you know, I live out there right on site, so anytime that you want to meet with me or anybody, I would be more than happy to It's not a battle. It's just some issues that we have to take care of. I'm not here to complain because everything went well. All the contractors that worked out there worked with me, and they used my driveway for cement trucks and everything else. And so I just want somebody to come out and see if, like, the pigeons left the nest and they're gone. They're not coming back. And I want the council to know that. Thank you. And maybe you can help me. I don't know. But anyway.

43:48Speaker 6

I appreciate your comments. And in order to properly address you, if you could leave your name or your contact information, and I'm sure we could get in touch with those people.

43:56Speaker 12

Mayor Protham, I have all the information for Mr. Fritz. So I will reach out to Fritz Shelly.

44:01Speaker 16

You can come out and have property.

44:02Speaker 12

I'll come up to your property. I'll take care of you.

44:05Speaker 16

I'll not complain. I just want to get it done so I can get my arm. I've been doing it for three years. It's been an interesting project. Thank you.

44:17 – 44:30Speaker 6

Are there any additional members in the public who would like to do a public comment regarding Section 6.2? Seeing none, is there anyone online? Madam Clerk?

44:31 – 44:42Speaker 9

Just as a reminder, if you're joining us on Zoom and wish to make a comment, please use the raise hand feature. If you're calling in by phone, you may press star nine. We do have a couple comments. Candice, you can go ahead and unmute yourself.

44:45 – 45:16Speaker 18

I'm just here to say the same thing I said for the Junior Fire Academy Explorer post. I feel the same way about the Police Academy. I'm really excited about it. I think it could be really good for Patterson youth. And if it goes well, I could see it becoming a regular thing. And I'm really excited to get to be a part of it through Love Patterson. So kudos to our chief for making it happen and for being so community focused. We really appreciate you. Thank you so much, Chief Hill.

45:23Speaker 9

Yolanda, you can go ahead and unmute yourself.

45:26 – 46:26Speaker 19

I just wanted to echo what Candace said. Both Explorer posts are awesome. Being a person at Livermore Police Department who helped put together their first youth academy and Explorer program, I just am absolutely thrilled that it's finally coming to Patterson and giving our youth more of a career focus. And then, of course, being... involved in Boy Scouts now with my younger son. I'm very happy to see the fire one come as well. I know Newman and I think, I don't know if it's Christine, but Newman definitely has a program. And we've had some Patterson graduates recently come out of that. And so it would be, it's just going to be so awesome to have something like that, right, in Patterson. So kudos to both chiefs. I'm just so happy that we have that leadership here in our community. So thank you.

46:32Speaker 9

And there are no other comments, Mayor Pro Tem.

46:35 – 47:20Speaker 6

Seeing no additional persons who wish to provide public comments on item 6.2, we will now close public comments on 6.2. I just want to say thank you for your excellent presentation, Chief Acala and Chief Hill, and very grateful for that information. We're moving on to Item 7, Consent Calendar. All items are approved by single action. Any item may be removed from the Consent Calendar for a separate discussion upon request from a member of the public, staff, or a council member. Consent Calendars 7.1 to 7.7 are open for consideration for approval. Are there any items to be pulled for discussion by our council members?

47:23 – 47:50Speaker 6

Are there any items to be pulled for discussion by staff or members of the public? Seeing none, do I have a motion to approve consent calendar 7.1 to 7.7? I'll motion. Do I have a second? The motion has been seconded. We have a roll call. Council Member Mora? Aye. Council Member Romero?

47:51Speaker 6

Council Member Hernandez?

47:53Speaker 6

And Mayor Pro Temp goes aye. The motion is approved from 7.1 to 7.7 with a 4-0 vote and with one absent.

48:03 – 48:27Speaker 6

We'll be moving on to item 8, public. Approve resolution 7.8.1. NUMBER 2026-2024, ADOPTING UPDATED FEES BASED ON THE CITY WIDE COMPREHENSIVE USER FEE STUDY COMPLETED BY WILDAN FINANCIAL SERVICE. STAFF REPORT, OUR FINANCE DIRECTOR WILLIAMS, KEVIN WILLIAMS.

48:27Speaker 7

NEW SPEAKER Good evening, Mayor Pro Tem, members of the city council and members of the public.

48:32Speaker 8

I'm Kevin Williams, the city's finance director.

48:35 – 51:27Speaker 7

The item before you tonight is a resolution adopting updated user fees based on the citywide comprehensive user fee study adopted in 2021 with some modest CPI-based adjustments. At its core, this item is about cost recovery and fiscal responsibility. User fees allow the city to recover the reasonable costs of providing specific services to individuals or projects rather than subsidizing those services with general fund dollars. In fiscal year 2018-19, the City retained Willdown Financial Services to complete a comprehensive review of all City user fees. That study evaluated staff time, fully burdened hourly rates, overhead, and other legal requirements to determine the full cost of providing services. Based on that analysis, the city adopted a defensible fee structure across departments such as building, planning, engineering, fire, public works, finance, and administration. Recreation and community services fees are handled a little bit differently as they are set primarily based on market and industry standards rather than full cost recovery. Tonight's request is not a new fee study. It applies a CPI adjustment of about 1.5% to the already approved fees, and that CPI is based on the June 2025 San Francisco-Oakland Hayward Consumer Price Index, consistent with prior council direction. In addition, some departments reviewed their fees and made limited refinements and cleanup changes, which are reflected in the attached schedules. Most individual increases are relatively small, often just a few dollars, and strictly tied to inflation. State law allows cities to recover the full cost of services provided fees are reasonably related to those costs. The user fee study methodology continues to meet that standard. By law, these fees cannot take effect until 60 days after adoption. If approved tonight, the updated fees would become effective July 4, 2026. Keeping user fees current matters for three reasons. First, it prevents erosion of cost recovery over time. Second, it reduces ongoing general fund subsidies for services that benefit specific users. And third, it provides consistent and predictable funding for the departments providing these services. This action does not require new appropriation, but it helps offset existing service costs. Staff also plans to return to council in fiscal year 26-27 with a fully updated comprehensive user fee study consistent with the five-year update requirement. In summary, this action is legally compliant, fiscally responsible, and consistent with prior council direction. For those reasons, staff recommends approval of resolution number 2026-24, adopting the updated user fees. That concludes my staff report, and I'm happy to answer any questions.

51:30 – 51:57Speaker 6

Is there any member of the council who has any questions, concerns, or comments from this item 8.1? None. Seeing no apparent or concerns or comments from the council, we'll now open it to the public. Is there anyone in the public present who wishes to provide a public comment? Madam Clerk, is there anyone online who would wish to provide a public comment on this section?

51:57 – 52:10Speaker 9

Just as a reminder, if you're joining us on Zoom and wish to make a comment, please raise your, please use the raise hand feature. If you're calling in by phone, you may press star nine. Candice, you can go ahead and unmute yourself.

52:12 – 52:37Speaker 18

Hi, Candice Wyrock, City of Patterson. I am not going to pretend to understand all of our utility stuff, but I do have a question. Based on the little knowledge that I have of the Chevron project, wasn't that supposed to be something that allowed us to keep rates the same, or am I mistaken?

52:41 – 53:15Speaker 7

Thank you, Candice. So these fees are actually going to be different than the enterprise rates, and That project specifically was talking about utility costs. User fees are going to take a look at all costs, and I think the majority of those services are going to be related to staff time. And so as inflation keeps on going up, the city's costs continue to go up, and so we have to adjust our fees in order to maintain the same recovery level.

53:22 – 53:33Speaker 18

Okay, so just to clarify then, this is basically us ensuring that we can keep the good stuff that we have and pay them what they deserve.

53:37 – 53:53Speaker 7

These fee increases are to ensure that when entities that are serving their own purposes have to reimburse the city for the cost of them providing services that are not part of the general good for the city.

53:56Speaker 18

Okay. Thank you.

53:57Speaker 6

Thank you. Is there any other member on the line?

54:03Speaker 9

There are no other comments, Mayor Perkins.

54:05 – 54:36Speaker 6

Seeing no additional persons on the line who wishes to provide any public comments on item 8.1, we will close the public comment now. Do I have a motion to approve item 8.1, providing resolution number 2026-24, adopting updated user fees based on citywide comprehensive user fee study completed by Willden Financial Services. Do I have a motion to approve items 8.1?

54:38 – 54:49Speaker 6

Do I have a second? The motion has been seconded and it requires a roll call vote. Council Member Mora? Aye. Council Member Romero?

54:50Speaker 6

Council Member Hernandez? Aye. And Mayor Pro Tem votes aye. Your motion passes by 4-0 with one absent.

55:03Speaker 13

We're going to 8.2.

55:03 – 55:18Speaker 6

We're moving on to 8.2, approve resolution number 2026- Oh, my bad. 2026-02.

55:18Speaker 9

You need to adjourn to- Oh, my bad.

55:20 – 55:44Speaker 6

Okay. Sorry. Thank you. Bear with me. Sorry. We will now adjourn to our Wes Patterson Financing Authority. We'll call to order. Roll call. Could we do roll call, Madam Clerk?

55:46Speaker 9

Member Roque?

55:48Speaker 9

Member Mora? Aye. Member Romero? Aye. Member Hernandez? Aye. And Chair Cosell is absent.

56:02 – 56:37Speaker 6

8.2, approve resolution number 2026-01, authorizing the issuance and sale of a special tax bond for and behalf of the West Patterson Financing Authority. Community Facilities District number 2022-2, Baldwin Ranch Infrastructure, approving and directing the execution and fiscal agent agreement. Approving. the forms of the preliminary official statement approving sale of such bonds and approving other related documents and actions. Staff Report, Finance Director Williams.

56:39 – 57:43Speaker 7

Thank you very much. The next item before you is the first of two related bond financings being presented this evening. Together, these two bond issuances are structured to fund the remaining portion of the Phase 3 expansion of the City's Water Quality Control Facility, a critical infrastructure project necessary to support continued growth and regulatory compliance. This particular item focuses on the first bond issuance, including approval of the related financing documents and the sale of the bonds. Mike Cavanaugh from Hilltop Security, serving as the city's underwriting team for this financing, is here this evening and will walk the authority through the structure of the bond issuance, key terms, and the approval actions before you. Also here this evening is David Fama from the firm Jones Hall, who is the bond counsel for this issuance. And then finally, the city's municipal financial advisor, Kenneth Deeker, is available via Zoom. to answer any questions from the authority related to the financing, market conditions, or debt structure. With that, I will turn over to Mike Cavanaugh from Hilltop Securities to begin the presentation.

57:53 – 1:05:48Speaker 15

Thank you, Tim, and city council staff and members of the public. My name is Mike Cavanaugh. I'm with Hilltop Securities. I've been the underwriter for the city for a little over 10 years now. We're going to discuss the first one is CFD 22-2, Baldwood Ranch infrastructure. Melrose bonds, the city has issued maybe now for probably for the last 25 years, you've issued a number of different Melrose bonds. These are the legal acts that allow you to issue such. If you have specific questions on that, Dave Fama, bond counselor, can answer specific questions. But the city has issued a number of these. Most recently, I believe this is the most recent one, 22-2. Melrose bonds are CFD bonds issued, and there's a special tax levied on property owners within the district, voter approved. It's paid out of your property tax bill, and it's attached to the property. So if you move, it stays on the property. The bond is not a debt of the city. Again, it's a debt of the property itself formed underneath the district. Generally, every bond deal has a reserve fund that's there for liquidity purposes and for the purposes of curing any delinquencies if needed. And if I'm going too fast, please stop me, ask me any questions. I'm happy to elaborate. Here's the boundary map of the district. I drove it on my way over here today. It is about 430 parcels, I believe. About 400 of the building permits have been pulled, so significant development has occurred. The commercial sections are still vacant, and I believe about 30 residential parcels are still vacant. AS SHOWN HERE, WE HAVE SINCE THIS PRESENTATION WAS PUT TOGETHER, THERE'S 19 ADDITIONAL PERCELS THAT HAVE BEEN ADDED. SO AT THE END OF THE DAY, WE'LL HAVE ABOUT 400 PERCELS IN THE DISTRICT. WITH 48 UNDER CONSTRUCTION, 48 We'll have 67 parcels under construction, which is significant. The credit quality is generally garnered by how developed the property is, right? The more developed it is, the less their defaults will happen or less delinquencies will happen, the more secure the district will be. So the proposed 2026 bonds will issue a par amount of bonds, about $13 million. Out of that, we'll be able to generate a little over $11 million for the city. These are based on cost and estimates as of April, early April. So the true interest cost is $542. We also put in the resolution that you'll approve tonight, hopefully we'll approve tonight, not to exceed amounts. So if interest rates shoot up a lot, we're not allowed to do it. If it goes over 6.5, we're not allowed. We have to come back and ask for permission again. Likewise, we have a not to exceed par amount, right? We don't want to over-issue. So if it goes over that, we have to come back and ask for permission. Annual debt service starts off at about $700,000 and increases out to $1.2 million. So how the special taxes work is about a 2% increase every year. So first year will be about $700,000, increasing to $1.2 million. We look at a debt service coverage ratio of 110, meaning for every $1.1 million of special tax, you could have a debt service of $1 million. Again, there's a cash-funded bond reserve that will go, if never touched, will go to make the last payment. And again, the value to lien, when we talk about a developed district, the higher the value to lien, the more secure the transaction, right? If you think about the value of a home, you're more likely to walk away from a value if it's one-to-one. But if it's 12-to-one, you're really not likely to walk away from that special tax obligation. The interesting part about the Baldwin Ranch project is because of how developed it is, I think we have the ability to go talk to a bond insurer. The bond insurer will add value. It will take it from a non-rated transaction. You buy bond insurance, and now you have a AA-rated transaction. Interest rates are significantly lower. It generates more proceeds for the city. We're examining that, and that will be a determination upon the market acceptance. We've yet to receive bids from the bond insurers, but we're expecting that next week. So we'll go over it with Ken Deeker and the city to determine whether there's value in that or not. And we only do it if there's value. Here is what we – the left column is the max tax. You have an admin fee, and then what you get is the debt service. And so it's showing that you have a 110 coverage based on the max tax and based on debt service for the duration of the bonds, which is 30 years. These are the estimated cost of issuance. So for about the $14, $15 million deal, the cost of issuance will be $345,000 in total, all the line items out there. And these are just estimated costs. Generally, they're usually pretty close. I'm happy to go through any of those if there's any line items you want to discuss. Move on. When we do CFD districts, one of the keys is the developers that do this, they always want to see an effective tax rate under 2%. And you notice here that all of the projects, all of the homes in the district will have, at the end of the day, an effective tax rate under 2%. That's kind of a threshold that developers look to to make sure they're sellable. And so we're complying with all that here. Here's the proposed financing schedule. We hope to get your approval tonight of the resolution to allow us to move forward. Over the next two weeks, we'll be finishing up the legal documents, what we call the preliminary official statement, which is the offering document. We'll finalize that, and then we go into the market. So we'll pick a date right here. It's scheduled for the week of June 1st where we do actual sale to the public. We'll do a public offering, taking orders, And at that time, that day, we usually would have a verbal agreement and a written agreement, and the bonds will, quote, have their pricing done, interest rates set. We'll know how much money the city gets. And from there, it takes about two weeks for all the legal process to go to closing. So we're looking at a pricing in the first week of June, a closing in the third week of June. And again, for your consideration today is the fiscal agent agreement. It's a legal document that Mr. Fama has put together, and the official statement is an offering document, again, that Dave Fama at Jones Hall puts together. Part of the process will be a continuing disclosure agreement that the city will have to undertake, basically reporting what happens to the public, specifically to the buyers of the bonds. There's certain events that you would have to disclose if they happen. And then there's a bond purchase agreement, which is an agreement between the underwriter Hilltop Securities and the authority basically signing a contract saying what the purchase price is for all the bonds. And that will be executed on the day of pricing. And so again, in front of you is the resolution for consideration for 22-2 and all of the approving documents. And I'm happy to answer any questions.

1:05:53 – 1:06:09Speaker 17

I have a quick question. Will any residents that paying the Melrose see a higher, lower, or unchanged payment on their Melrose? Will that affect the residents?

1:06:10 – 1:06:38Speaker 15

I believe the special tax went into effect this fiscal year, so 25-26. So they would have just made their first full year of payments. And every year here forth, it'll go up 2%. So I believe this year, essentially the special tax right now is just under $1,900 on average per unit per year. And that increases by 2% a year.

1:06:46 – 1:07:08Speaker 6

I have another question regarding this Melrose tax. I've been asked this question by a couple of my community members, constituents. Is there a way they could actually pay this out completely? And then sometimes I've heard that some of them paid some money into it. I don't know if it's true or not. And then it's been refinanced and then their payment goes higher. Is that any true? I mean, I don't.

1:07:09 – 1:08:20Speaker 15

You're always allowed to prepay it. It's written in the statute. You have to allow a property owner to prepay it. The payment formula is based on what we call a rate and method. So that was approved when the district was formed. That should really delineate how that prepayment can occur. But every CFD has to have – well, I shouldn't say that. I believe most CFDs have a prepayment, and I don't think this one is any exception. Dave, do you know? It hasn't. It hasn't, right. Okay. And when you do a refunding, I've never done a refunding of a bond and had the payment go up. If any refunding happens, it usually only happens to lower the payment. So I don't think that's true, but I can't speak on every deal. Okay. a refinancing or refunding the outstanding bonds. So we did something similar for Patterson. In 2023, you had a bunch of districts combined into one, and we were able to refinance that and pass on savings to all the property owners across the board. And I don't have all that information in front of me, but I know we did that in 2023.

1:08:22Speaker 6

Now with the question, when you refinance that bond now will extend the life of the loan term?

1:08:30 – 1:08:50Speaker 15

It shouldn't. When I've done refundings, we either lower the maturity date and lower and or lower the payment. So either or both have to occur. When I've done a deal, I can't speak to other deals, but none of that has been done to my knowledge in Patterson since I've been here. I've been working here for 10 years.

1:08:50Speaker 6

Now, the last question I have is you could actually pay for it, let's say, $30,000, and they don't have to worry at all to coming back and keep paying additional taxes on that, correct?

1:09:00 – 1:09:14Speaker 15

You're allowed to prepay it. Yeah, there's a prepayment formula that, again, is described in the rate and method. And we could look at it, what it would be to make an average prepayment payoff. You know, that would change every year. But, yes, that is something that could happen.

1:09:15Speaker 13

Okay. Thank you.

1:09:18 – 1:09:31Speaker 6

Is there any other council member has any additional questions, comments, and concerns? Seeing no parent questions, do we have anybody on public who wants to have any public comments or concerns?

1:09:39 – 1:10:16Speaker 8

Hi, guys. Mark Omar, the city of Patterson. I wasn't planning on coming today, but I guess that's good. That's my neighborhood we're talking about right there. So just clarification questions. One thing, so just to get a better understanding, yes, I was using GPT in the audience and taking pictures of the thing, and that was the owl that was looking up there. So we're taking a loan against the Malibu attacks and whatnot. And those funds are planned to be used for infrastructure for specifically that district or for the expansion? And when we say expansion, do we mean Baldwin Ranch South?

1:10:18Speaker 7

So these funds are earmarked to complete the Phase 3 expansion of the wastewater treatment plant.

1:10:25 – 1:10:44Speaker 8

Okay, okay. And does that affect anything? Because I mean, the idea of Melrose is that that money's funding specifically and only that district, right? Will, let's just say my community, will we see any loss in support for our community or our district or whatnot, if I'm making sense?

1:10:48 – 1:11:10Speaker 7

No, so essentially the development of your community has decreased the capacity of the wastewater treatment plant. And so what this is doing and what this allows, there's a bunch of contributing factors, but essentially we're putting that capacity back into the treatment plant for future development. Okay.

1:11:10 – 1:11:51Speaker 8

okay okay and then to get future development for my for baldwin ranch district or for this development in general i believe development in general in general okay um and then uh lastly where we said we mellow rose is about 1 900 a year for for each when we say unit we mean home right um I think I pay more than that. I could be incorrect, but I think we paid, that would equate to what, like $150 a month? We pay like $300 and something a month, if I'm not mistaken. Can anybody confirm? I should know. There are multiple CFDs involved.

1:11:51Speaker 7

So this is just an infrastructure CFD, but you also pay into a maintenance CFD and a public safety CFD.

1:11:58Speaker 8

Okay. Perfect. Awesome. Just clarification questions. Thank you, guys. Thank you.

1:12:07 – 1:12:27Speaker 6

Are there any members? No, you're good. I was going to say, are there any other members in the public who wish to put up a comment? Are there any members online who would like to comment on this section 8.2?

1:12:29 – 1:12:40Speaker 9

Just as a reminder, if you're joining us on Zoom and wish to make a comment, please use the raise hand feature. If you're calling in by phone, you may press star 9. We do not have any comments online.

1:12:41 – 1:13:35Speaker 6

Seeing no additional comments online, we will be closing item 8.2. We'll call the comments. Do I have a motion to approve WPFA resolution number 2026-01 authorizing the issuance of sale of special tax bond FOR AND ON BEHALF OF THE WEST PATTERSON FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NUMBER 2022-2, BALDWIN RANCH INFRASTRUCTURE, APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT, APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT, APPROVING SALE OF SUCH BONDS AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS. Do we have a motion to approve consent calendar 8.2?

1:13:35Speaker 10

All in motion.

1:13:40 – 1:14:03Speaker 6

Do we have a second? I will second that. So we'll be voting. Council Member Mora. Council Member Romero. I. Councilmember nandes.

1:14:05 – 1:15:27Speaker 6

Yeah, you know your protein votes. Yes. The motion to approve WPFA Resolution Number 2026-01, authoring the issuance of special sales tax bond for and behalf of the West Patterson Financing Authority Community Facilities District Number 2022-2, Baldwin Ranch Infrastructure. Approving and directing the execution of a fiscal agent agreement. Approving the form of the preliminary official statement. approving sale of such bonds and approving other related documents and action passes with a 3-1 vote and with one absent moving on to item 8.3 Approved Resolution No. 2026-02, authorizing the issuance of a sales of a special tax bond for and behalf of the West Patterson Financing Authority, Community Facilities District No. 2005-1. West Patterson Business Park, approving and directing the execution of a supplemental fiscal agent agreement, approving the form of a preliminary official statement, approving sales of a such bond, and approving other related documents and actions. Staff Report, Finance Director, Kevin Williams.

1:15:28 – 1:16:14Speaker 7

Thank you. The next item is the second of the two bond issuances being considered this evening and is closely related to the previous item. While presented separately, the two financings are designed to work together with bond proceeds ultimately being used to complete the phase three expansion of the water quality control facility. This item addresses several approval of the second bond issuance, including the related financing documents and authorizing actions necessary to proceed with the sale. Mike Cavanaugh from Hilltop Securities will again provide an overview of the financing details of the issuance. As with the previous item, David Falma is also here tonight, and the city's municipal financial advisor, Kenneth Deeker, is available via Zoom to respond to any questions from the authority.

1:16:18 – 1:21:43Speaker 15

Fair pro tem members of council. Again, Mike Cavanaugh here to talk about CFD 05-1. This is the business park. And I was involved with the first bond issuance in 2015. We did a subsequent bond issuance in 2021. And again, we're here in front of you today asking for a third bond deal. Again, like the Baldwin Ranch, these bonds are issued under the Melrose Community Facilities Act of 1982. Again, there are special taxes that have been voter approved and put on a property tax bill. Melrose bonds, again, are not a debt of the city. It's, again, part of the property. So when you own property, you're taxed on the property. If you move, the tax stays on the property. The boundary map, as shown with this CFD, there's been a number. We issue bonds when permits are issued, development occurs, and more special tax revenue is available to bond against. So this depicts the developed property. There's still some undeveloped property, and there's some exempt property. The exempt property is generally governmental-owned property. Current development status, unlike Baldwin Ranch, this district only has currently 31 parcels. The Baldwin Ranch had over 400. So this is a little more concentrated and a little less secure from a bondholder's perspective. But there is a huge amount of value, about $470 million of value. So it's very interesting, and it will be very interesting to see how it prices and sells in the public market. The proposed bonds will look to be about a little over $10 million in size. That's going to generate about $8.5 million of proceeds. Again, this is all projected as of April 8th at that time. Markets move every day, so this will change. And thus, we are asking you for not to exceed amounts. So we won't exceed $12 million in bonds. we thought when we did the interest rates, we thought the interest rate would be above 585. We're saying, hey, we won't do bonds unless it's under 650. If it's over 650, we have to come back and ask for permission. Annual debt service will start off about $200,000 and increases again up to $1.2 million. Debt service coverage, it's a little different because we've issued two other series of bonds. So it starts off, I have a slide that will show it, but it starts off at $110,000 coverage and increases to $144,000 coverage. Again, we fund a reserve fund for the benefit of the bondholders, gives them a little more security. And here on this next slide, you could see the projected max tax on the far left, the admin costs, and then that gives you a net projected max tax. So we've issued bonds in 15-21, and then assuming permission tonight, we'll issue the bonds for 20-26. That creates a total debt service there in that second from the right column. And then the coverage in that last column is the maximum tax, less expenses, divided by debt service. So it starts off at about a 110 coverage, you see, and then as it graduates down, it goes to a 144 coverage. What is different is this, is these taxes sunset in 2056, so these bonds will mature in that year. Again, cost of issuance are delineated here. We're at $330,000 total cost of issuance. I'm happy to discuss any light item that you want to talk about, but that's the total cost of issuance, and that's included in the bond deal. So your proceeds are net of those costs and expenses. Proposed schedule, again, we're asking for your approval tonight. We'll spend the next two weeks getting all the documents in order. We'll finalize what we call the preliminary official statement and then set for a pricing in the first week of June. Two weeks later, we would hope to close the bond deal. So the middle of June, we look to close and have the funds in the bank for the city. Again, documents for consideration is a fiscal agent agreement. It's a supplement because you've had one originally in 15, supplemented in 21, and now supplemented again. We'll have the official statement and, again, the continuing disclosure that's been undertaken since 2015 will continue. The bond purchase contract is, again, a contract between the underwriter and the city talking about the pricing of the bonds and locking that into a written contract. The resolution, again, is asking permission to issue another series of bonds for CFD 05-1, the business park. And, again, the resolution contains a supplemental fiscal agent agreement, form of preliminary official statement, and other documents related thereto.

1:21:44 – 1:22:00Speaker 17

Quick question. You said it locks in the rate. Are there any other legal complications in extreme cases like bond defaults? defaults or legal complications when you sell the bonds?

1:22:00 – 1:23:32Speaker 15

So we'll sell the bonds When we sell the bonds, it means we go into the public market and we negotiate prices with the public and we come back to the city and say, hey, here's what we can do. Here's the interest rates on the bonds. And what we say is a bid to underwrite. So based on the markets that we experienced that day, the public offering, the results of the public offering, Here's what bonds we sold. Here's what bonds we didn't. Here's what we'll do. We agree to underwrite. We have a verbal agreement. And Ken Deeker is your representative in these discussions. So that discussion happens between the underwriter, the city, and Ken Deeker. And Ken Deeker sits on your side of the table. and make sure that the underwriter has done a good enough job to have the city sign a purchase contract. So when the purchase contract is signed, interest rates and prices are set on the bonds, then we can deduct what the total project fund to the city would be, and only at that time can we project what the total project fund is after we've come to a written agreement or verbal agreement after the sale of the bonds. Does that make sense? I'm sorry. But a default would only occur down the road if property taxes weren't paid. That's when a default could occur. There's never been one happen, to my knowledge, in Patterson. Yes, ma'am.

1:23:34Speaker 11

Just out of curiosity, why did it get done three times? Why is this the third time we're reissuing? What is this going for, for us to do it three times?

1:23:45 – 1:24:36Speaker 15

Yeah, it's interesting. So the district was formed in 2005, and there wasn't enough development. It hadn't happened. So when someone pulls a building permit, then you can start levying special taxes. So in that district specifically, and I wasn't here in 2005, but my guess is there was no development in 2005, and you didn't get a massive development for 10 years to warrant doing a bond issuance. And so you did a bond issuance 2015, which I took part in. Then you had more development occur, so more special taxes came on the roll, which allowed you to issue another one in 21. And so the same thing happened between now and 2021, where a couple more parcels, I think there are about six more parcels, pulled billing permits and built something, therefore creating more special taxes that you can levy against.

1:24:39Speaker 17

Follow up on that question. Is it the same district? It's the same district. The three times?

1:24:45 – 1:25:06Speaker 15

Yes. Yep. And again, each parcel has a maximum tax. So it can't increase because it's defined in the rate and method that was adopted in 2005. So it's adopted in 2005. It doesn't change. This just happens when new parcels come in. It creates more cash flow that you can bond against.

1:25:12 – 1:25:34Speaker 6

Is there any Board member has any additional questions, comments, or concerns on this matter? Seeing no parent or additional concerns from the Board, we will now open item 8.3 for public comments. Are there any public comments online?

1:25:36Speaker 9

Just as a reminder, if you're joining us on Zoom and wish to make a comment, please use the raise hand feature. If you're calling in by phone, you may press star 9. And we do not have any comments online.

1:25:49 – 1:26:39Speaker 6

Well, seeing no additional persons who wish to provide any more public comments on item 8.3, we will now close public comment. Do I have a motion to approve WPFA Resolution Number 2026-02, authorizing the issuance of sale of a special tax bond for and on behalf of the West Patterson Financing Authority Community Facilities District Number 2005-1, West Patterson Business Park. approving and directing the execution of a supplemental fiscal agent agreement, approving the form of a preliminary official statement, approving sale of a such bond, and approving other related documents and actions. Do I have a motion to approve item 8.3?

1:26:41 – 1:26:59Speaker 6

Do I have a second? I will second. Motion 8.3. The motion has been seconded and it requires a roll call vote for the West Patterson Finance and Authority Board. Council Member Mora? Aye. Council Member Romero?

1:27:02Speaker 6

Council Member Hernandez?

1:27:05 – 1:27:58Speaker 6

And your Mayor Pro Tem votes. Yes. The motion approves the WPFA Resolution No. 2026-02 authorizing the issuance and sale of a special tax bond on behalf of the West Patterson Financing Authority Community Facilities District No. 2005-1 West Patterson Business Park. approving and directing the execution of a supplemental fiscal agent agreement, approving the form of the preliminary official statement, approving sale of such bonds, and approving other related documents and actions, passes with a 3-1 vote and with one absent. We will now adjourn back to our regular City Council meeting. Going to item section number nine, city council items. Council Member Hernandez.

1:28:00Speaker 17

None. I have a meeting with the Shaw Center for Homeless Alliance next week on Wednesday, and I will report back on that. Thank you.

1:28:09Speaker 6

Council Member Romero.

1:28:10Speaker 11

Nothing to report.

1:28:12Speaker 6

Council Member Mora.

1:28:13Speaker 10

Nothing to report.

1:28:15Speaker 6

And your mayor pro tem, we're okay on EDAC. We have not set a date to be moving on to other matters.

1:28:27 – 1:29:10Speaker 6

No. I do. I just want to say I really appreciate your support, Araceli and Myra, in the last minute to help me this and being patient with me. So thank you very much on that. And one other one, I would really see if the possibility of bringing – to agendize a feasibility study or report, you know, maybe next meeting if it's possible, Fernando. So any last thoughts before we adjourn our meeting? Oh, okay. So never mind. We'll be coming back. We'll be adjourning to a regular council meeting to a closed session meeting.

1:29:10 – 1:29:21Speaker 14

The City Council will be recessing the regular City Council meeting to re-engage in closed session and we'll be back for a report out of closed session.

1:29:24 – 1:30:22Speaker 6

We're reporting out from closed session to address concerns that... have been raised by a vote of 4-0 with one absence, the City Council ratified the City Attorney's filing of notice of appeal of the judgment entered on February 17, 2026 in the Building Industry Association of the Greater Valley v. City of Patterson case. The notice of appeal was filed on April 2, 2026, consistent with litigation strategy presented by the city attorney's office during closed session on March 17, 2026, where the city council was able to provide comment and ask questions and raise any concerns related to the city's initial approved legal strategy. For the rest, the report has been directed to staff. And this meeting has now adjourned.

This transcript was automatically generated from the official public meeting video and is presented unedited. It reflects remarks made on the public record by elected officials, staff, and public commenters. Transcript accuracy may vary; view the original recording for reference.