Lemoore council schedules study session on Bay‑Delta plan, authorizes HDL tax contract and nonprofit setup for recreation

The Lemoore City Council on Jan. 7 reached consensus to schedule a study session on a proposed amendment to the Bay‑Delta Plan by the State Water Resources Control Board, voted to approve an agreement with HDL Companies to process a newly adopted local sales tax, and authorized the city attorney to prepare paperwork to form a nonprofit to support the Recreation Department.

Council placed the water-item (agenda item 4‑10) on a future study session after members and several public speakers expressed concern that the resolution as drafted—originating from a request by the League of California Cities—did not identify remedies or clearly explain local effects on Valley water deliveries. Councilors said they wanted more information before taking a position. The staff memo and public comment noted that the proposed amendments could affect deliveries through the Central Valley Project and the State Water Project; one public commenter urged resistance to proposals tied to Governor Newsom’s administration. Council recorded consensus to return the item for a dedicated study session.

On item 4‑14 the council approved an agreement with HDL Companies to add a new transaction (a 1% district sales tax) into the city’s CDTFA reporting and forecasting. Staff told the council HDL prepared the sales‑tax forecast used in the city budget; staff said an estimated full fiscal‑year revenue (for the new tax once operative) used in budgeting was about $3,900,000. The contract with HDL includes base fees for transaction district tax reports (staff said $300 per month billed quarterly) and additional implementation fees tied to new transactions; the contract is required by the California Department of Tax and Fee Administration (CDTFA) to process the district’s tax reporting. Staff said the contract cost will be covered by sales-tax revenue rather than the general fund in the current fiscal year.

On item 4‑7 council authorized the city attorney to draft articles and other formation documents to create a nonprofit foundation for the Recreation Department. Staff estimated the one‑time legal cost to set up the nonprofit at roughly $3,000–$5,000. Supporters in the audience, including a representative of the Rotary Club of Lemoore, urged the council to include community members in the nonprofit’s governing structure so local organizations can continue to donate and partner on projects.

Consent calendar items listed on the agenda were approved in single or grouped votes after several items were pulled for discussion. Council approved multiple routine items, including department updates and agreements with local organizations; individual consent votes and the HDL contract were recorded as approved during the meeting.

Votes and key motions - Item 4‑10 (Resolution regarding State Water Resources Control Board amendments/Bay Delta Plan): Council reached consensus to return the matter for a study session (action: referral/study session). No formal approval of the resolution was taken. - Item 4‑14 (Agreement with HDL Companies for sales tax reporting and forecasting): Motion to approve carried (motion by Councilmember Gornick; second by Councilmember Lyons); outcome: approved (5–0 recorded at time of vote). Staff noted estimated FY2026 revenue for the full tax at approximately $3,900,000 and described HDL fees: $300 monthly billed quarterly for transaction district tax reports plus implementation fees tied to new transactions. - Item 4‑7 (Authorize city attorney to draft nonprofit for Recreation Department): Motion approved (consensus/roll call recorded); staff estimated one‑time legal cost $3,000–$5,000. - Consent calendar (multiple routine items listed as 4‑1 through 4‑14 with some pulls): Majority of consent items adopted in grouped votes; individually pulled items were discussed and then approved as recorded in the minutes.

Staff and several councilmembers said the water resolution originated from national/regional discussions and from a League of California Cities request; council requested more substantive analysis of likely local impacts before taking a formal position.